-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B6uT1/nXW8K0iaBZwAHN60lKX/gk40kumhwKzhL3yN09vAWg1F9cmVyam9wMIBEv 6QXJ17+YixO2NTWsuV/bEA== 0001209286-09-000409.txt : 20090709 0001209286-09-000409.hdr.sgml : 20090709 20090709172743 ACCESSION NUMBER: 0001209286-09-000409 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20090430 FILED AS OF DATE: 20090709 DATE AS OF CHANGE: 20090709 EFFECTIVENESS DATE: 20090709 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STEWARD FUNDS, INC. CENTRAL INDEX KEY: 0000092500 IRS NUMBER: 751281784 FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-01597 FILM NUMBER: 09937798 BUSINESS ADDRESS: STREET 1: 5847 SAN FELIPE STREET 2: SUITE 4100 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 713-260-9000 MAIL ADDRESS: STREET 1: 5847 SAN FELIPE STREET 2: SUITE 4100 CITY: HOUSTON STATE: TX ZIP: 77057 FORMER COMPANY: FORMER CONFORMED NAME: CHRISTIAN STEWARDSHIP FUNDS DATE OF NAME CHANGE: 20021126 FORMER COMPANY: FORMER CONFORMED NAME: CAPSTONE CHRISTIAN VALUES FUND INC DATE OF NAME CHANGE: 20011119 FORMER COMPANY: FORMER CONFORMED NAME: CAPSTONE FIXED INCOME SERIES INC DATE OF NAME CHANGE: 19920703 0000092500 S000003648 Steward Large Cap Enhanced Index Fund C000010134 Individual Class SEEKX C000010135 Institutional Class SEECX 0000092500 S000003814 Steward Select Bond Fund C000010642 Institutional Class SEACX C000010643 Individual Class SEAKX 0000092500 S000010863 Steward International Enhanced Index Fund C000030111 Individual Class SNTKX C000030112 Institutional Class SNTCX 0000092500 S000021424 Steward Global Equity Income Fund C000061277 Individual Class C000061278 Institutional Class N-CSR 1 e70506.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-01597 ---------------------------------------------- Steward Fund, Inc. - ----------------------------------------------------------------------- (Exact name of registrant as specified in charter) 5847 San Felipe, Suite 4100, Houston, TX 77057 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Citi Fund Services, 3435 Stelzer Road, Columbus, OH 43219 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (800) 262-6631 -------------------- Date of fiscal year end: April 30, 2009 ------------------ Date of reporting period: April 30, 2009 ------------------ ITEM 1. REPORTS TO STOCKHOLDERS. April 30, 2009 [LOGO OF STEWARD] STEWARD(SM) ---------------------- M U T U A L F U N D S STEWARD FUNDS MANAGING WEALTH, PROTECTING VALUES - -------------------------------------------------------------------------------- ANNUAL REPORT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- TABLE OF CONTENTS - -------------------------------------------------------------------------------- Letter to Shareholders and Manager Commentaries ............................ 2 Industry Diversification Schedules ......................................... 12 Schedules of Portfolio Investments ......................................... 17 Financial Statements ....................................................... 48 Notes to Financials ........................................................ 58 General Information ........................................................ 67 ANNUAL REPORT Steward Large Cap Enhanced Index Fund Steward Small-Mid Cap Enhanced Index Fund [LOGO OF STEWARD] STEWARD(SM) Steward Global Equity Income Fund - ---------------------- M U T U A L F U N D S Steward International Enhanced Index Fund Managing Wealth, Protecting Values Steward Select Bond Fund Faith-Based Screened Funds April 30, 2009 Dear Shareholder: We are pleased to present the Annual Report for the Steward Funds for the year ending April 30, 2009. The Annual Report includes commentary on the Funds' screening process, as well as performance reviews and current strategy from the portfolio managers. STEWARD FUNDS OFFER DIVERSIFICATION TO YOUR PORTFOLIO The asset allocation decision is one of the most important decisions an investor will make, and the Steward Funds make it possible to achieve a diverse asset allocation for your investment portfolio. The Funds offer fixed income, large-cap equity, small/mid-cap equity, international equity and global equity income for your investing solutions. WHAT ARE THE STEWARD FUNDS' FAITH BASED SCREENS? Did you know faith based screens are applied to all of the investments within the Steward Funds family? The Steward Funds seek to avoid investment in pornography and abortion, as well as companies that are substantial producers of alcohol, gambling and tobacco. The Funds' screening resource firm, CFS Consulting Services, LLC, has extensive experience in the faith based investing business and brings a wealth of knowledge of screening for Christian-based investors. The following details each of the Fund's annual performance and strategies. STEWARD LARGE CAP ENHANCED INDEX FUND FUND PERFORMANCE For the year ended April 30, 2009, the Steward Large Cap Enhanced Index Fund returned -35.20% for the Individual class shares and -34.99% for the Institutional class shares. The return for the S&P 500 for the same period was - -35.31%. The S&P 500 Citigroup Pure index component returns were: -31.08% for the S&P 500 Citigroup Pure Growth and -43.67% for the S&P 500 Citigroup Pure Value index. FACTORS AFFECTING PERFORMANCE For the year ended April 30, 2009, the Fund's multi-index structure was allocated to the S&P 500, S&P 500 Citigroup Pure Growth and S&P 500 Citigroup Pure Value at 60%, 25% and 15% respectively. The Fund's higher allocation towards growth contributed positively towards performance. The more style focused S&P 500 Citigroup Pure Growth and S&P 500 Citigroup Pure Value indices when combined underperformed their non-pure counterparts over the same period negatively impacting the Fund's return. These two offsetting factors neutralized the performance impact versus the benchmark. Performance of the Fund can also be affected by its faith based investment policies, under which it avoids investing in companies whose primary business is associated with alcohol, tobacco products, abortion, gambling and pornography. For the year ended April 30, 2009, Anheuser-Busch Companies, Inc. (alcohol) which was acquired by InBev NV on November 18, 2008, substantially outperformed the benchmark with a return of +41.87% through the date of its acquisition, negatively affecting the Fund. Other restricted companies such as Comcast Corp. (pornography) also significantly outperformed the benchmark with a return of - -23.62% for the year. Overall however, the cultural values investment policies had only a slightly negative relative performance impact on the Fund for the period. 2 Compensating for a specific restricted industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. CURRENT STRATEGY The Fund's style tilt towards growth proved beneficial during the period. However recent gains in the financial sector have shifted the momentum towards value. The Fund will initially transition to a neutral tilt position until more indicators confirm the style shift. The Fund's investment objective is long-term capital appreciation. Its investment strategy is to provide effective diversified large cap equity exposure while adhering to cultural values investment policies. In addition, the Fund seeks to outperform its benchmark through selective allocation between growth and value style securities. This is accomplished by utilizing three subcomponents that represent an appropriate large cap pure growth, large cap pure value and large cap blend benchmark. The Fund will generally not attempt to allocate preferences in one industry over another or in one security over another versus its subcomponent benchmark allocations except to comply with its cultural values investment policies. STEWARD SMALL-MID CAP ENHANCED INDEX FUND FUND PERFORMANCE For the year ended April 30, 2009, the Steward Small Mid-Cap Enhanced Index Fund returned -29.41% for the Individual class shares and -29.26% for the Institutional class shares. The return for the S&P 1000 for the same period was - -31.34%. The S&P Pure index component returns were: -24.23% for the S&P 1000 Citigroup Pure Growth and -32.72% for the S&P 1000 Citigroup Pure Value index. FACTORS AFFECTING PERFORMANCE For the year ended April 30, 2009, the Fund's multi-index structure was allocated to the S&P 1000, S&P 1000 Citigroup Pure Growth and S&P 1000 Citigroup Pure Value at 60%, 20% and 20% respectively. The Fund maintained a neutral balance between growth and value for the period. The more style focused S&P 1000 Citigroup Pure Growth and the S&P 1000 Citigroup Pure Value indices when combined outperformed their non-pure counterparts during the period positively impacting the Fund's performance. Performance of the Fund can also be affected by its faith based investment policies, under which it avoids investing in companies whose primary business is associated with alcohol, tobacco products, abortion, gambling and pornography. For the year ending April 30, 2009, various restricted securities such as WMS Industries Inc. (gambling) outperformed the benchmark with a return of -11.27%. Other restricted securities such as Take-Two Interactive Software, Inc. (pornography) underperformed the benchmark with a return of -65.40%. Overall, the cultural values investment policies had no material affect on performance for the period. Compensating for a specific industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. CURRENT STRATEGY The Fund's current neutral style position reflects the volatility in the momentum changes that occurred during the period. The Fund is expected to maintain its neutral style position until a basis for a clear trend is determined. The Fund's investment objective is long-term capital appreciation. Its investment strategy is to provide effective diversified small-mid cap equity exposure while adhering to faith based investment policies. In addition, the Fund seeks to outperform its benchmark through selective allocation between growth and value style securities. This is accomplished by utilizing three subcomponents that represent an appropriate small-mid cap pure growth, small-mid cap pure value and small-mid cap blend benchmark. The Fund will generally not attempt to allocate preferences in one industry over another or in one security over another versus its subcomponent benchmark allocations except to comply with its cultural values investment policies. 3 STEWARD INTERNATIONAL ENHANCED INDEX FUND FUND PERFORMANCE For the year ended April 30, 2009, the Steward International Enhanced Index Fund returned -42.65% for the Individual class shares and -42.48% for the Institutional class shares. The return for the S&P ADR Index was -42.32%. To represent the emerging markets component, the BLDRS Emerging Markets 50 ADR Index Fund returned -41.22% for the same time period. FACTORS AFFECTING PERFORMANCE For the year ended April 30, 2009, the Fund's dual-index structure was allocated to the S&P ADR Index and BLDRS Emerging Markets 50 ADR Index Fund at 85% and 15% respectively. The Fund's current allocation structure represents a neutral balance between developed and emerging markets. The emerging markets component slightly outperformed the developed markets component over the period positively impacting the overall performance of the Fund. Performance of the Fund can also be affected by its faith based investment policies, under which it avoids investing in companies whose primary business is associated with alcohol, tobacco products, abortion, gambling and pornography. For the year ended April 30, 2009, various restricted securities such as Sanofi-Aventis (abortion) and Companhia de Bebidas das Americas (alcohol), substantially outperformed the benchmark with returns of -18.07% and -20.04% respectively, which negatively impacted the Fund during the period. Overall however, the cultural values investment policies had only a slightly negative relative performance impact on the Fund for the period. Compensating for a specific restricted industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. CURRENT STRATEGY The Fund's neutral bias towards the emerging markets during the period proved to be a fairly accurate assessment. The Fund is expected to maintain this position until more global economic data is reported from the various countries represented in the developed and emerging market indices. The Fund's investment objective is long-term capital appreciation. Its investment strategy is to provide effective diversified international equity exposure while adhering to faith based investment policies. In addition, the Fund seeks to outperform its benchmark through selective allocation between the developed and emerging market equity classes. This is accomplished by utilizing two subcomponents that represent an appropriate developed market and emerging market benchmark. The Fund will generally not attempt to allocate preferences in one country over another or in one security over another versus its subcomponent benchmark allocations except to comply with its cultural values investment policies. STEWARD GLOBAL EQUITY INCOME FUND FUND PERFORMANCE For the year ended April 30, 2009, the Steward Global Equity Income Fund returned -33.86% for the Individual class shares and -33.63% for the Institutional class shares. The return for the benchmark S&P 500 for the same period was -35.31%. The return for the international market as represented by the S&P ADR index fell -42.32%. The dividend yield on the portfolio as of April 30, 2009 was 5.4%. FACTORS AFFECTING PERFORMANCE For the year ended April 30, 2009, the Fund's most significant positive contributor to performance versus the S&P 500 was within the portfolio's consumer discretionary and energy sectors. Mattel Inc. (-15.68%) rebounded sharply after winning a copyright infringement case despite a weak holiday sales season. Genuine Parts Co. (-16.48%) has reported solid earnings on demand for its replacement parts. McDonald's Corp. (-7.79%) announced strong sales as consumers switched to lower priced restaurant chains. Despite the severe 4 drop in oil prices, companies such as Santos Ltd. (-17.86%) dramatically outperformed the overall market. Separately, Healthcare Services Group, Inc., a provider of housekeeping, facility maintenance and food services posted the only positive return for the period (+22.05%) as earnings growth continued. Weakness in the Fund was primarily in the international component of the portfolio which underperformed its domestic counterpart during the period as the U.S. financial and economic woes spread to international markets. Major European bank holdings such as Barclays PLC, HSBC Holding PLC and Deutsche Bank AG negatively impacted the portfolio and were subsequently sold. Performance of the Fund can also be affected by its faith based investment policies, under which it avoids investing in companies whose primary business is associated with alcohol, tobacco products, abortion, gambling and pornography. Compensating for a specific restricted industry or company whose total return deviates dramatically from the overall Index is extremely difficult regardless of its weight within that Index. CURRENT STRATEGY The Fund's investment objective is to provide current income along with growth of capital. It pursues this objective through a strategy of investing in dividend paying stocks that have demonstrated above median yield and a positive trend in dividend and earnings growth. Its investments include a range of market capitalizations. In addition to domestic stocks, this strategy includes the ability to invest in international securities traded on U.S. market exchanges. As the international market's share of the world's total market capitalization continues to grow, the ability to access these markets becomes increasingly important. The benefits of dividend-paying stocks include lower volatility versus non-dividend payers and the overall market. Dividends are an important indicator of corporate strength. Therefore companies are reluctant to change dividend policies, which could signal corporate distress. This encourages disciplined management. Unlike earnings, which can be affected by various accounting methods; dividends are transparent and cannot be manipulated. In addition, dividends have historically provided a major component of the stock market's total return. The strategy is designed to provide income with capital appreciation while lowering overall risk. This is accomplished while adhering to the Fund's cultural values investment policies. STEWARD SELECT BOND FUND FUND PERFORMANCE For the year ended April 30, 2009, the Steward Select Bond Fund returned 2.85% for the Individual class shares and 3.16% for the Institutional class shares. For comparison purposes the Barclays Capital Intermediate US Aggregate Index returned 4.30% for the same period. The Fund's net annual performance lagged the benchmark slightly due to an underweighting of U. S. Treasury issues relative to corporate and mortgage-related bonds which continue to provide high levels of current income but did not participate fully in the price rally posted by other sectors. MARKET OVERVIEW Seeking safety and liquidity as the depth and breadth of the current economic slowdown was revealed, investors paid handsome premiums for only the highest quality fixed income investments. As a result, there have been clear winners and losers in the U. S. fixed income markets during the last twelve months. The simpler days for bond holders when sector pricing floated relatively evenly along yield curves remain largely a pleasing daydream of more manageable times. Each major area of fixed income investing responded during the extraordinarily volatile times almost independently to global as well as specific factors, and presented new sets of structural challenges for fixed income managers to protect principal and produce predictable income. There was a wide divergence in performance across investment grade sectors: from the market's seemingly total abandonment of the financial sector (posting a negative total rate of return of -10.24%); to the solid returns for government- backed mortgage-backed securities of a positive 8.46% total return; and a positive 6.80% total return for intermediate maturity Treasury issues. This nearly unprecedented difference of approximately eighteen percent in relative performance was driven, in part, by an insatiable need to protect 5 principal, and was accelerated by recent Federal Reserve actions to directly purchase a host of government securities through the U. S. Treasury in a stated attempt to drive home mortgage rates to historically low levels. FACTORS AFFECTING PERFORMANCE We have been fortunate to have concentrated our most recent investments in the U. S. agency market and the higher grade industrial sectors with relatively shorter final maturity dates. The U.S. Treasury market offers little investment advantage at current yield levels and the prices, especially at the longer end of the curve, do not appear sustainable even after the recent sell-off. The Fund remains fully invested in Government-backed mortgage-backed issues, which have continued to provide the most consistent bond market returns. While new issuance in the corporate bond market has accelerated recently as companies race to take advantage of the attractive current financing opportunities, investors have been rewarded in many cases for their early participation. Only the highest quality, non-financial firms are being granted access to these funding sources. This general fragmentation makes individual decision analysis mandatory to differentiate relative value from herd mentality; more so since secondary market liquidity is still suffering from an absence of traditional dealer support and pricing models fluctuate. CURRENT STRATEGY We believe that the best remaining strategy to weather the prevailing storm is to hold those securities which we believe have solid financial footings, despite current liquidity difficulties, and, most importantly, to monitor and maintain strict diversification rules. Monetary and fiscal authorities are on the offensive to take the most promising steps to address the crisis of confidence breaking down the credit markets, and we expect that much, although not all, of the damage is behind, rather than in front of us. Once economic growth begins to reappear we believe that the credit markets will quickly anticipate a dramatic reversal of Federal Reserve policy, and interest rates across the yield curve will climb substantially. We will monitor specific changes in the employment and housing data for signals on when and how to restructure our fixed income strategy. We anticipate waiting to re-introduce the financial sector until solid evidence of the turning of the financial crisis is readily apparent. The Fund is managed to adhere to faith based investment policies and attempts to enhance portfolio characteristics and performance relative to the Barclays Capital Intermediate US Aggregate Index. Performance of the Fund can be affected by the addition of faith based investment policies, under which it avoids investing in companies whose primary business is associated with alcohol, tobacco products, abortion, gambling and pornography. There have been no difficulties to date in accomplishing the Fund's objective given these restrictions. WE THANK YOU FOR YOUR CONTINUED INVESTMENT WITH THE STEWARD FUNDS Your business is important to us. The current total net assets of the Funds are nearing $500 million. This growth would not have been possible without the many referrals that we have received from our existing clients, as well as your continued investment. For more information on the Steward Funds, we invite you to visit our website at www.stewardmutualfunds.com or call us at 800.262.6631. We look forward to fulfilling your investment needs for many years to come. Sincerely, /s/ Edward Jaroski /s/ Scott Wynant Edward Jaroski Scott Wynant President Senior Vice President Steward Funds Steward Funds /s/ Howard Potter /s/ John Wolf Howard Potter John Wolf Portfolio Manager Portfolio Manager Steward Funds Steward Funds 6 STEWARD FUNDS - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE INDIVIDUAL CLASS OF SHARES OF THE STEWARD LARGE CAP ENHANCED INDEX FUND* AND THE S&P 500.** (UNAUDITED) [CHART OF STEWARD LARGE CAP ENHANCED INDEX FUND]
STEWARD LARGE CAP ENHANCED INDEX INDIVIDUAL S&P 500 10/1/2004 $10,000.00 $10,000.00 12/31/2004 10,780.96 10,153.00 3/31/2005 10,574.80 10,657.00 6/30/2005 10,826.40 10,486.00 9/30/2005 11,282.65 11,238.00 12/31/2005 11,503.45 11,038.00 3/31/2006 12,262.13 11,763.00 6/30/2006 11,914.68 12,102.00 9/30/2006 12,199.78 11,842.00 12/31/2006 13,021.51 12,842.00 3/31/2007 13,320.20 13,470.00 6/30/2007 14,104.43 13,946.00 9/30/2007 14,218.46 13,753.00 12/31/2007 13,669.84 14,712.00 3/31/2008 12,392.11 13,159.00 6/30/2008 11,908.29 13,294.00 9/30/2008 10,905.83 12,227.00 12/31/2008 8,273.41 9,401.00 3/31/2009 7,357.70 8,076.00 4/30/2009 8,379.18 8,599.00
[END OF CHART] PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 800-262-6631. Average Annual Total Return as of April 30, 2009
Since Expense One Year Inception*** Ratio++ -------- ------------ ------- Large Cap Enhanced Index Fund - Individual Class (35.20)% (3.79)% 0.99% S&P 500 (35.31)% 8.27% N/A
* The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. The Steward Large Cap Enhanced Index Fund's performance assumes the reinvestment of all income dividends and capital gains distributions, if any, but does not reflect the impact of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All market indices are unmanaged and do not reflect expenses that affect performance results. It is not possible to invest directly in any index. ** The Standard and Poor's 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market of 500 stocks representing all major industries. *** Effective date of registration and commencement of operations are the same: October 1, 2004. ++ See the August 28, 2008 prospectus for details. 7 STEWARD FUNDS - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE INDIVIDUAL CLASS OF SHARES OF THE STEWARD SMALL-MID CAP ENHANCED INDEX FUND* AND THE S&P 1000.** (UNAUDITED) [CHART OF STEWARD SMALL-MID CAP ENHANCED INDEX FUND]
STEWARD SMALL-MID CAP ENHANCED INDEX FUND INDIVIDUAL S&P 1000 4/30/1999 $10,000.00 $10,000.00 10/31/1999 10,447.09 10,211.00 10/31/2000 11,011.75 13,256.00 10/31/2001 8,178.02 11,832.00 10/31/2002 6,911.81 11,304.00 10/31/2003 7,920.14 14,879.00 10/31/2004 8,351.20 16,785.00 10/31/2005 8,835.01 19,615.00 10/31/2006 10,175.00 22,423.00 10/31/2007 11,082.41 25,821.00 10/31/2008 6,999.75 16,720.00 4/30/2009 6,929.23 16,228.00
[END CHART] PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 800-262-6631. Average Annual Total Return as of April 30, 2009
Expense One Year Five Year Ten Year Ratio++ -------- --------- -------- ------- Small-Mid Cap Enhanced Index Fund - Individual Class (29.41)% (3.36)% (3.60)% 1.15% S&P 1000 (31.34)% 0.31% 4.96% N/A
* The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. The Steward Small-Mid Cap Enhanced Index Fund's performance assumes the reinvestment of all income dividends and capital gains distributions, if any, but does not reflect the impact of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All market indices are unmanaged and do not reflect expenses that affect performance results. It is not possible to invest directly in any index. ** The Standard and Poor's 1000 is a capitalization-weighted index combining the Standard and Poor's Mid Cap 400 and the Standard and Poor's Small Cap 600. Both indices represent stocks chosen for market size, liquidity and industry group representation. ++ See the August 28, 2008 prospectus for details. 8 STEWARD FUNDS - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE INDIVIDUAL CLASS OF SHARES OF THE STEWARD INTERNATIONAL ENHANCED INDEX FUND* AND THE S&P ADR INDEX.** (UNAUDITED) [CHART OF STEWARD INTERNATIONAL ENHANCED INDEX FUND]
STEWARD INTERNATIONAL ENHANCED S&P ADR INDEX INDEX FUND INDIVIDUAL 2/28/2006 $10,000.00 $10,000.00 3/31/2006 10,977.00 10,000.00 6/30/2006 10,677.00 10,036.48 9/30/2006 11,375.00 10,381.40 12/31/2006 12,084.00 11,400.02 3/31/2007 12,865.00 11,674.64 6/30/2007 13,308.00 12,830.41 9/30/2007 15,063.00 13,351.49 12/31/2007 12,921.00 13,105.34 3/31/2008 13,721.00 11,828.11 6/30/2008 12,442.00 12,074.47 9/30/2008 8,151.00 9,622.31 12/31/2008 7,173.00 7,290.10 3/31/2009 7,914.00 6,507.73 4/30/2009 7,321.20
[END CHART] PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 800-262-6631. Average Annual Total Return as of April 30, 2009
Expense One Year Since Inception*** Ratio++ -------- ------------------ ------- International Enhanced Index Fund - Individual Class (42.65)% (9.38)% 1.23% S&P ADR Index (42.32)% 15.72% N/A
* The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. The Steward International Enhanced Index Fund's performance assumes the reinvestment of all income dividends and capital gains distributions, if any, but does not reflect the impact of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All market indices are unmanaged and do not reflect expenses that affect performance results. It is not possible to invest directly in any index. ** The S&P ADR, the Fund's designated broad-based index, is based on the non-U.S. stocks comprising the S&P Global 1200 Index. The index is made up of those companies from the S&P Global 1200 that offer either Level II or Level III ADRs, global shares or ordinary shares in the case of Canadian equities. The index was developed with a base value of 1000 on December 31, 1997. *** Initial share purchase was made on February 28, 2006. ++ See the August 28, 2008 prospectus for details. 9 STEWARD FUNDS - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE INDIVIDUAL CLASS OF SHARES OF THE STEWARD SELECT BOND FUND* AND THE BARCLAYS CAPITAL INTERMEDIATE US AGGREGATE INDEX.** (UNAUDITED) [CHART OF STEWARD BARCLAYS CAPITAL INTERMEDIATE US AGGREGATE INDEX FUND]
BARCLAYS CAPITAL INTERMEDIATE STEWARD SELECT BOND US AGGREGATE INDEX FUND INDIVIDUAL 10/1/2004 $10,000.00 $10,000.00 12/31/2004 10,073.00 9,995.54 3/31/2005 10,112.00 9,888.05 6/30/2005 10,135.00 10,153.83 9/30/2005 10,191.00 10,072.49 12/31/2005 10,161.00 10,095.02 3/31/2006 10,293.00 10,041.61 6/30/2006 10,257.00 10,010.41 9/30/2006 10,396.00 10,324.96 12/31/2006 10,681.00 10,422.08 3/31/2007 10,754.00 10,581.73 6/30/2007 10,972.00 10,527.09 9/30/2007 10,968.00 10,761.74 12/31/2007 11,272.00 10,996.85 3/31/2008 11,708.00 11,203.41 6/30/2008 11,748.00 11,023.53 9/30/2008 11,662.00 11,013.74 12/31/2008 11,439.00 11,345.23 3/31/2009 12,038.00 11,391.18 4/30/2009 12,253.00 11,447.88
[END CHART] PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 800-262-6631. Average Annual Total Return as of April 30, 2009
Since Expense One Year Inception*** Ratio++ -------- ------------ ------- Select Bond Fund - Individual Class 2.85% 3.00% 1.04% Barclays Capital Intermediate US Aggregate Index 4.30% 4.60% N/A
* The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. The Steward Select Bond Fund's performance assumes the reinvestment of all income dividends and capital gains distributions, if any, but does not reflect the impact of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All market indices are unmanaged and do not reflect expenses that affect performance results. It is not possible to invest directly in any index. ** The Barclays Capital Intermediate US Aggregate Index represents the segment of the Barclays Aggregate Bond Index that has an average maturity and duration in the intermediate range. *** Effective date of registration and commencement of operations are the same: October 1, 2004. ++ See the August 28, 2008 prospectus for details. 10 STEWARD FUNDS - -------------------------------------------------------------------------------- COMPARISON OF CHANGE IN VALUE OF A HYPOTHETICAL $10,000 INVESTMENT IN THE INDIVIDUAL CLASS OF SHARES OF THE STEWARD GLOBAL EQUITY INCOME FUND*, THE S&P 500** AND THE S&P 1200.*** (UNAUDITED) [CHART OF STEWARD GLOBAL EQUITY INCOME INDIVIDUAL FUND]
STEWARD GLOBAL EQUITY INCOME INDIVIDUAL S&P 1200 S&P 500 4/1/2008 $10,000.00 $10,000.00 $10,000.00 6/30/2008 9,727.00 9,294.49 9,856.00 9/30/2008 8,913.00 8,949.22 8,388.00 12/31/2008 6,957.00 7,099.29 6,574.00 3/31/2009 6,191.00 6,065.89 5,786.00 4/30/2009 6,784.00 6,643.40 6,445.00
[END CHART] PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL 800-262-6631. Average Annual Total Return as of April 30, 2009
Since Expense One Year Inception*** Ratio++ -------- ------------ ------- Global Equity Income Fund - Individual Class (33.86)% (31.54)% 1.17% S&P 500 (35.31)% 8.27% N/A S&P 1200 (39.13)% (33.34)% N/A
* The investment return and principal value of an investment will fluctuate and, therefore, an investor's shares, when redeemed, may be worth more or less than their original cost. The Steward Global Equity Income Fund's performance assumes the reinvestment of all income dividends and capital gains distributions, if any, but does not reflect the impact of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All market indices are unmanaged and do not reflect expenses that affect performance results. It is not possible to invest directly in any index. ** The Standard and Poor's 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market of 500 stocks representing all major industries. *** The Standard & Poor's 1200 index is a global index of 1200 stocks comprised of the following 7 S&P regional indices: S&P 500 (United States), S&P Europe 350 (Europe), S&P/TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australia 50 (Australia), S&P Asia 50C (Asia Ex-Japan) and the S&P Latin America 40 (Latin America). Beginning April 1, 2009, the S&P 1200 is the Fund's Secondary index. **** Effective date of registration and commencement of operations are the same: April 1, 2008. ++ See the August 28, 2008 prospectus for details. 11 STEWARD FUNDS INDUSTRY DIVERSIFICATION SCHEDULE - APRIL 30, 2009 (UNAUDITED) LARGE CAP ENHANCED INDEX FUND - -------------------------------------------------------------------------------- The table below sets forth the diversification of the Steward Large Cap Enhanced Index Fund investments by Industry.
INDUSTRY DIVERSIFICATION PERCENT* -------- Oil, Gas & Consumable Fuels 9.5% Computers & Peripherals 4.5 Pharmaceuticals 4.0 Insurance 4.0 Software 3.8 Diversified Financial Services 3.4 Specialty Retail 3.2 Food & Staples Retailing 2.7 Diversified Telecommunication Services 2.7 Internet Software & Services 2.6 Communications Equipment 2.6 Capital Markets 2.6 Semiconductors & Semiconductor Equipment 2.6 Health Care Providers & Services 2.5 Health Care Equipment & Supplies 2.5 Energy Equipment & Services 2.4 Aerospace & Defense 2.2 Commercial Banks 2.2 Food Products 2.0 Metals & Mining 2.0 Real Estate Investment Trust 2.0 Multi-Utilities 1.9 Biotechnology 1.9 Household Products 1.8 Machinery 1.8 Multiline Retail 1.8 Hotels, Restaurants & Leisure 1.8 Beverages 1.8 Industrial Conglomerates 1.7 Chemicals 1.7 Electric Utilities 1.6 Commercial Services & Supplies 1.6 Electronic Equipment & Instruments 1.5 IT Services 1.5 Media 1.2 Air Freight & Logistics 1.0 Household Durables 0.8 Textiles Apparel & Luxury Goods 0.8 Paper & Forest Products 0.7 Road & Rail 0.6 Consumer Finance 0.5 Automobiles 0.5 Auto Components 0.5 Electrical Equipment 0.5 Personal Products 0.4 Unknown 0.4 Real Estate - Operations and Development 0.4 Gas Utilities 0.4 Containers & Packaging 0.3 Independent Power Producers & Energy Traders 0.3 Diversified Consumer Services 0.3 Wireless Telecommunication Services 0.3 Trading Companies & Distributors 0.2 Leisure Equipment & Products 0.2 Health Care Technology 0.2 Electronic Components 0.2 Life Sciences Tools and Services 0.2 Building Products 0.1 Thrifts & Mortgage Finance 0.1 Office Electronics 0.1 Distributors 0.1 Airlines 0.1 Construction & Engineering 0.1 Internet & Catalog Retail 0.1 Construction Materials -- ----- Total Investments 100.0% =====
* Percentages indicated are based on net assets as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 12 STEWARD FUNDS INDUSTRY DIVERSIFICATION SCHEDULE - APRIL 30, 2009 (UNAUDITED) SMALL-MID CAP ENHANCED INDEX FUND - -------------------------------------------------------------------------------- The table below sets forth the diversification of the Steward Small-Mid Cap Enhanced Index Fund investments by Industry.
INDUSTRY DIVERSIFICATION PERCENT* -------- Specialty Retail 7.6% Real Estate Investment Trust 6.1 Commercial Services & Supplies 4.6 Machinery 4.2 Electronic Equipment & Instruments 4.2 Insurance 3.6 Commercial Banks 3.6 Hotels, Restaurants & Leisure 3.4 Health Care Equipment & Supplies 3.2 Health Care Providers & Services 3.0 Semiconductors & Semiconductor Equipment 3.0 Textiles Apparel & Luxury Goods 3.0 Energy Equipment & Services 2.9 Software 2.9 Chemicals 2.7 IT Services 2.4 Oil, Gas & Consumable Fuels 2.3 Internet Software & Services 2.0 Diversified Consumer Services 1.8 Gas Utilities 1.6 Household Durables 1.5 Communications Equipment 1.5 Capital Markets 1.4 Containers & Packaging 1.3 Metals & Mining 1.3 Food Products 1.3 Diversified Financial Services 1.2 Electrical Equipment 1.2 Road & Rail 1.2 Aerospace & Defense 1.1 Thrifts & Mortgage Finance 1.1 Computers & Peripherals 1.1 Construction & Engineering 1.1 Electric Utilities 1.0 Leisure Equipment & Products 1.0 Multi-Utilities 1.0 Pharmaceuticals 1.0 Auto Components 0.9 Media 0.8 Biotechnology 0.8 Life Sciences Tools and Services 0.6 Household Products 0.6 Unknown 0.6 Building Products 0.6 Food & Staples Retailing 0.6 Paper & Forest Products 0.5 Restaurants 0.5 Personal Products 0.5 Multiline Retail 0.4 Beverages 0.4 Trading Companies & Distributors 0.4 Diversified Telecommunication Services 0.3 Consumer Finance 0.3 Construction Materials 0.3 Marine 0.3 Airlines 0.3 Wireless Telecommunication Services 0.2 Industrial Conglomerates 0.2 Water Utilities 0.2 Internet & Catalog Retail 0.2 Retail 0.2 Auto Parts & Equipment 0.2 Real Estate Management - Service 0.2 Automobiles 0.1 Health Care Technology 0.1 Real Estate - Operations and Development 0.1 Air Freight & Logistics 0.1 Office Electronics 0.1 Independent Power Producers & Energy Traders 0.1 Radio Broadcasting -- Distributors -- ----- Total Investments 100.1% =====
* Percentages indicated are based on net assets as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 13 STEWARD FUNDS COUNTRY DIVERSIFICATION SCHEDULE - APRIL 30, 2009 (UNAUDITED) INTERNATIONAL ENHANCED INDEX FUND - -------------------------------------------------------------------------------- The table below sets forth the diversification of the Steward International Enhanced Index Fund investments by Country.
COUNTRY DIVERSIFICATION PERCENT* -------- United Kingdom 20.8% Canada 13.5 Japan 9.9 Brazil 7.5 Switzerland 5.2 Spain 4.8 Germany 4.7 Taiwan 4.5 France 4.5 Hong Kong 2.9 Australia 2.7 Republic of Korea (South) 2.6 Netherlands 2.2 Mexico 2.2 Italy 1.6 China 1.3 Finland 1.2 Israel 0.9 India 0.8 Chile 1.0 South Africa 0.8 Denmark 0.6 Ireland (Republic of) 0.5 Sweden 0.5 Norway 0.5 United States 0.4 Greece 0.3 Russian Federation 0.2 Indonesia 0.2 Portugal 0.2 Philippines 0.2 Peru 0.1 Luxembourg 0.1 Turkey 0.1 New Zealand 0.1 Argentina -- ---- Total Investments 99.6% =====
* Percentages indicated are based on net assets as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 14 STEWARD FUNDS INDUSTRY DIVERSIFICATION SCHEDULE - APRIL 30, 2009 (UNAUDITED) SELECT BOND FUND - -------------------------------------------------------------------------------- The table below sets forth the diversification of the Steward Select Bond Fund investments by Industry.
INDUSTRY DIVERSIFICATION PERCENT* -------- Unknown 74.3% Commercial Banks 4.0 Consumer Staples 3.5 Financial Services 3.0 Mortgage Backed Securities - Religious Organizations 1.9 Utilities-Telecommunications 1.9 Mortgage Backed Securities - Financial Services 1.8 Insurance 1.5 Computers & Peripherals 1.4 Capital Markets 0.9 Aerospace & Defense 0.8 Consulting Services 0.6 Asset Backed Mortgages 0.4 Pharmaceuticals 0.4 Brokerage Services 0.4 Utilities-Electric & Gas 0.4 Oil & Gas - Integrated 0.4 Retail 0.3 Transportation 0.3 Electronic Equipment & Instruments 0.3 Semiconductors & Semiconductor Equipment 0.3 Diversified Financial Services 0.2 Forestry 0.1 ---- Total Investments 99.1% ====
* Percentages indicated are based on net assets as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 15 STEWARD FUNDS INDUSTRY DIVERSIFICATION SCHEDULE - APRIL 30, 2009 (UNAUDITED) GLOBAL EQUITY INCOME FUND - -------------------------------------------------------------------------------- The table below sets forth the diversification of the Steward Global Equity Income Fund investments by Industry.
INDUSTRY DIVERSIFICATION PERCENT* -------- Oil, Gas & Consumable Fuels 17.0% Pharmaceuticals 10.3 Commercial Banks 7.0 Semiconductors & Semiconductor Equipment 5.4 Food Products 4.9 Commercial Services & Supplies 4.5 Real Estate Investment Trust 4.3 Leisure Equipment & Products 4.1 Computers & Peripherals 3.6 Diversified Telecommunication Services 3.3 Industrial Conglomerates 2.8 Distributors 2.8 Hotels, Restaurants & Leisure 2.8 Aerospace & Defense 2.6 Media 2.3 Electrical Equipment 2.3 Chemicals 2.2 Metals & Mining 2.0 Electric Utilities 1.9 Gas Utilities 1.9 IT Services 1.9 Containers & Packaging 1.5 Beverages 1.5 Trading Companies & Distributors 1.3 Textiles Apparel & Luxury Goods 1.3 Household Products 1.2 Construction Materials 0.9 Health Care Equipment & Supplies 0.8 Multi-Utilities 0.7 Unknown 0.5 ---- Total Investments 99.6% ====
* Percentages indicated are based on net assets as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 16 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- COMMON STOCKS (99.6%) AEROSPACE & DEFENSE (2.2%) General Dynamics Corp. 3,450 $ 178,262 Goodrich Corp. 1,340 59,335 Honeywell International, Inc. 6,140 191,629 L-3 Communications Holdings, Inc. 1,170 89,096 Lockheed Martin Corp. 4,750 373,017 Northrop Grumman Corp. 4,550 219,993 Precision Castparts Corp. 1,170 87,586 Raytheon Co. 3,630 164,185 Rockwell Collins, Inc. 7,280 279,188 The Boeing Co. 6,238 249,832 United Technologies Corp. 7,760 378,989 ------------ 2,271,121 ------------ AIR FREIGHT & LOGISTICS (1.0%) C.H. Robinson Worldwide, Inc. 4,730 251,447 Expeditors International of Washington, Inc. 6,840 237,416 FedEx Corp. 2,650 148,294 United Parcel Service, Inc., Class B 8,200 429,188 ------------ 1,066,345 ------------ AIRLINES (0.1%) Southwest Airlines Co. 8,720 60,866 ------------ AUTO COMPONENTS (0.5%) Goodyear Tire & Rubber Co.(a) 31,410 345,196 Johnson Controls, Inc. 9,340 177,553 ------------ 522,749 ------------ AUTOMOBILES (0.5%) Ford Motor Co.(a) 77,940 466,081 General Motors Corp. 4,890 9,389 Harley-Davidson, Inc. 2,810 62,270 ------------ 537,740 ------------ BEVERAGES (1.8%) Coca-Cola Co. 16,900 727,545 Coca-Cola Enterprises, Inc. 11,310 192,949 Dr Pepper Snapple Group, Inc.(a) 2,140 44,319 Pepsi Bottling Group, Inc. 2,020 63,165 PepsiCo, Inc. 16,260 809,098 ------------ 1,837,076 ------------ BIOTECHNOLOGY (1.9%) Amgen, Inc.(a) 11,700 567,099 Biogen Idec, Inc.(a) 5,750 277,955 Celgene Corp.(a) 10,390 443,861 Cephalon, Inc.(a) 820 53,800 Genzyme Corp.(a) 2,710 144,524 Gilead Sciences, Inc.(a) 7,750 354,950 Life Technologies Corp.(a) 1,912 71,318 PerkinElmer, Inc. 1,920 27,974 ------------ 1,941,481 ------------ BUILDING PRODUCTS (0.1%) Masco Corp. 14,910 132,103 ------------ CAPITAL MARKETS (2.6%) Ameriprise Financial, Inc. 5,696 150,090 Bank of New York Mellon Corp. 9,451 240,811 Charles Schwab Corp. 8,010 148,025 E*TRADE Financial Corp.(a) 33,770 48,291 Federated Investors, Inc., Class B 1,500 34,320 Franklin Resources, Inc. 3,410 206,237 Goldman Sachs Group, Inc. 6,470 831,395 Janus Capital Group, Inc. 1,360 13,641 Legg Mason, Inc. 8,440 169,391 Morgan Stanley 22,710 536,864 Northern Trust Corp. 1,890 102,740 State Street Corp. 3,637 124,131 T. Rowe Price Group, Inc. 2,150 82,818 ------------ 2,688,754 ------------ CHEMICALS (1.7%) Air Products & Chemicals, Inc. 3,410 224,719 CF Industries Holdings, Inc. 360 25,938 Dow Chemical Co. 15,950 255,200 E.I. Du Pont De Nemours & Co. 11,280 314,712 Ecolab, Inc. 5,110 196,991 International Flavors & Fragrances, Inc. 1,000 31,200 Monsanto Co. 4,460 378,609 PPG Industries, Inc. 1,770 77,969 Praxair, Inc. 2,690 200,701 Sigma-Aldrich Corp. 1,330 58,307 ------------ 1,764,346 ------------ COMMERCIAL BANKS (2.2%) BB&T Corp. 8,410 196,289 Comerica, Inc. 10,990 230,570 Fifth Third Bancorp 19,800 81,180 First Horizon National Corp. 3,442 39,617 Huntington Bancshares, Inc. 20,160 56,246 KeyCorp 14,580 89,667 M&T Bank Corp. 1,330 69,759 Marshall & Ilsley Corp. 12,979 75,019 PNC Financial Services Group, Inc. 4,004 158,959 Regions Financial Corp. 20,182 90,617 Sun Trust Banks, Inc. 9,420 136,025
SEE NOTES TO FINANCIAL STATEMENTS. 17 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- U.S. Bancorp 16,760 $ 305,367 Wells Fargo & Co. 34,288 686,103 Zions Bancorp 4,190 45,797 ------------ 2,261,215 ------------ COMMERCIAL SERVICES & SUPPLIES (1.6%) Avery Dennison Corp. 3,620 104,039 Cintas Corp. 1,510 38,747 Equifax, Inc. 8,050 234,738 Iron Mountain, Inc.(a) 1,650 47,008 Leucadia National Corp.(a) 1,840 39,063 Monster Worldwide, Inc.(a) 1,190 16,422 Moody's Corp. 2,050 60,516 Pitney Bowes, Inc. 3,170 77,792 R.R. Donnelley & Sons Co. 15,860 184,769 Republic Services, Inc., Class A 3,446 72,366 Robert Half International, Inc. 8,780 210,895 Stericycle, Inc.(a) 840 39,547 The Dun & Bradstreet Corp. 2,960 240,944 Total System Services, Inc. 13,021 162,372 Waste Management, Inc. 4,870 129,883 ------------ 1,659,101 ------------ COMMUNICATIONS EQUIPMENT (2.6%) Ciena Corp.(a) 882 10,540 Cisco Systems, Inc.(a) 57,060 1,102,399 Corning, Inc. 13,430 196,347 Harris Corp. 4,910 150,148 JDS Uniphase Corp.(a) 2,260 10,419 Juniper Networks, Inc.(a) 4,830 104,569 Motorola, Inc. 70,840 391,745 QUALCOMM, Inc. 17,630 746,101 Tellabs, Inc.(a) 4,204 22,029 ------------ 2,734,297 ------------ COMPUTERS & PERIPHERALS (4.5%) Apple Computer, Inc.(a) 9,606 1,208,723 Dell, Inc.(a) 33,260 386,481 EMC Corp.(a) 17,750 222,407 Hewlett-Packard Co. 19,850 714,203 International Business Machines Corp. 11,093 1,144,909 Lexmark International, Inc., Class A(a) 6,030 118,309 NetApp, Inc.(a) 15,710 287,493 SanDisk Corp.(a) 25,790 405,419 Sun Microsystems, Inc.(a) 22,487 205,981 Teradata Corp.(a) 2,110 35,279 ------------ 4,729,204 ------------ CONSTRUCTION & ENGINEERING (0.1%) Fluor Corp. 1,460 55,290 ------------ CONSTRUCTION MATERIALS (0.0%) Vulcan Materials Co. 903 42,938 ------------ CONSUMER FINANCE (0.5%) American Express Co. 9,720 245,138 Capital One Financial Corp. 7,048 117,984 Discover Financial Services 4,270 34,715 SLM Corp.(a) 34,420 166,249 ------------ 564,086 ------------ CONTAINERS & PACKAGING (0.3%) Ball Corp. 5,210 196,521 Bemis Co., Inc. 1,340 32,214 Owens-Illinois, Inc.(a) 1,320 32,195 Pactiv Corp.(a) 1,740 38,036 Sealed Air Corp. 1,650 31,449 ------------ 330,415 ------------ DISTRIBUTORS (0.1%) Genuine Parts Co. 1,840 62,486 ------------ DIVERSIFIED CONSUMER SERVICES (0.3%) Apollo Group, Inc., Class A(a) 3,850 242,358 H&R Block, Inc. 3,150 47,691 ------------ 290,049 ------------ DIVERSIFIED FINANCIAL SERVICES (3.4%) Bank of America Corp. 62,629 559,277 CIT Group, Inc. 99,770 221,490 Citigroup, Inc. 68,110 207,736 CME Group, Inc. 1,415 313,210 IntercontinentalExchange, Inc.(a) 4,550 398,580 Invesco Ltd. 2,920 42,982 JP Morgan Chase & Co. 32,254 1,064,382 MasterCard, Inc., Class A 2,405 441,197 NYSE Euronext 13,970 323,685 The NASDAQ OMX Group, Inc.(a) 1,060 20,384 ------------ 3,592,923 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES (2.7%) AT&T, Inc. 49,877 1,277,849 CenturyTel, Inc. 6,670 181,090 Embarq Corp. 4,776 174,611 Frontier Communications Corp. 15,301 108,790 Qwest Communications International, Inc. 50,980 198,312 Verizon Communications, Inc. 25,220 765,175 Windstream Corp. 15,704 130,343 ------------ 2,836,170 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 18 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- ELECTRIC UTILITIES (1.6%) Allegheny Energy, Inc. 1,630 $ 42,250 American Electric Power Co., Inc. 6,230 164,347 Edison International 3,280 93,513 Entergy Corp. 1,850 119,824 Exelon Corp. 5,620 259,251 FirstEnergy Corp. 2,930 119,837 FPL Group, Inc. 3,440 185,038 Northeast Utilities 640 13,453 Pepco Holdings, Inc. 9,040 108,028 Pinnacle West Capital Corp. 5,290 144,840 PPL Corp. 3,600 107,676 Progress Energy, Inc. 4,710 160,705 Southern Co. 6,350 183,388 ------------ 1,702,150 ------------ ELECTRICAL EQUIPMENT (0.5%) Cooper Industries Ltd., Class A 1,450 47,545 Emerson Electric Co. 6,200 211,048 Rockwell Automation, Inc. 7,140 225,553 ------------ 484,146 ------------ ELECTRONIC COMPONENTS (0.2%) Tyco Electronics Ltd. 10,310 179,806 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%) Agilent Technologies, Inc.(a) 22,990 419,798 Amphenol Corp., Class A 10,580 358,027 FLIR Systems, Inc.(a) 7,310 162,136 Jabil Circuit, Inc. 32,830 265,923 Molex, Inc. 4,920 82,016 Waters Corp.(a) 6,390 282,246 ------------ 1,570,146 ------------ ENERGY EQUIPMENT & SERVICES (2.4%) Baker Hughes, Inc. 7,870 280,015 BJ Services Co. 20,440 283,912 Cameron International Corp.(a) 8,070 206,431 Diamond Offshore Drilling, Inc. 580 41,998 ENSCO International, Inc. 6,190 175,053 Halliburton Co. 7,570 153,065 Nabors Industries Ltd.(a) 18,080 274,997 National-Oilwell Varco, Inc.(a) 3,256 98,592 Rowan Cos., Inc. 1,040 16,234 Schlumberger Ltd. 16,260 796,577 Smith International, Inc. 8,370 216,364 ------------ 2,543,238 ------------ FOOD & STAPLES RETAILING (2.7%) Costco Wholesale Corp. 3,930 190,998 CVS Corp. 11,985 380,883 Safeway, Inc. 4,210 83,148 SUPERVALU, Inc. 33,220 543,147 SYSCO Corp. 12,480 291,158 The Kroger Co. 5,940 128,423 Wal-Mart Stores, Inc. 18,430 928,872 Walgreen Co. 8,410 264,326 Whole Foods Market, Inc. 1,490 30,888 ------------ 2,841,843 ------------ FOOD PRODUCTS (2.0%) Archer-Daniels-Midland Co. 5,500 135,410 Campbell Soup Co. 7,740 199,073 ConAgra Foods, Inc. 7,720 136,644 Dean Foods Co.(a) 1,890 39,123 General Mills, Inc. 3,400 172,346 H.J. Heinz Co. 3,700 127,354 Hormel Foods Corp. 1,180 36,922 J.M. Smucker Co. 1,530 60,282 Kellogg Co. 6,490 273,294 Kraft Foods, Inc., Class A 12,890 301,626 McCormick & Co., Inc. 1,860 54,777 Sara Lee Corp. 7,840 65,229 The Hershey Co. 6,360 229,850 Tyson Foods, Inc., Class A 23,900 251,906 ------------ 2,083,836 ------------ GAS UTILITIES (0.4%) Nicor, Inc. 690 22,177 Questar Corp. 5,610 166,729 Spectra Energy Corp. 14,513 210,438 ------------ 399,344 ------------ HEALTH CARE EQUIPMENT & SUPPLIES (2.5%) Baxter International, Inc. 5,580 270,630 Boston Scientific Corp.(a) 12,697 106,782 C.R. Bard, Inc. 1,260 90,254 Covidien Ltd. 4,490 148,080 DENTSPLY International, Inc. 1,720 49,226 Hospira, Inc.(a) 2,080 68,370 Intuitive Surgical, Inc.(a) 3,215 462,092 Medtronic, Inc. 13,910 445,120 St. Jude Medical, Inc.(a) 7,170 240,338 Stryker Corp. 5,570 215,615 Varian Medical Systems, Inc.(a) 6,840 228,251 Zimmer Holdings, Inc.(a) 5,200 228,748 ------------ 2,553,506 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 19 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- HEALTH CARE PROVIDERS & SERVICES (2.5%) Aetna, Inc. 4,060 $ 89,361 AmerisourceBergen Corp. 7,360 247,591 Cardinal Health, Inc. 3,550 119,955 CIGNA Corp. 2,640 52,034 Coventry Health Care, Inc.(a) 2,086 33,188 DaVita, Inc.(a) 6,540 303,260 Express Scripts, Inc.(a) 5,558 355,545 Humana, Inc.(a) 1,600 46,048 Laboratory Corp. of America Holdings(a) 3,020 193,733 McKesson Corp. 4,230 156,510 Medco Health Solutions, Inc.(a) 4,200 182,910 Patterson Cos., Inc.(a) 7,490 153,245 Quest Diagnostics, Inc. 1,680 86,234 UnitedHealth Group, Inc. 18,204 428,158 WellPoint, Inc.(a) 4,400 188,144 ------------ 2,635,916 ------------ HEALTH CARE TECHNOLOGY (0.2%) IMS Health, Inc. 16,620 208,747 ------------ HOTELS, RESTAURANTS & LEISURE (1.8%) Darden Restaurants, Inc. 3,390 125,328 Marriott International, Inc., Class A 3,210 75,628 McDonald's Corp. 9,560 509,452 Starbucks Corp.(a) 25,420 367,573 Wyndham Worldwide Corp. 36,860 430,525 YUM! Brands, Inc. 9,900 330,165 ------------ 1,838,671 ------------ HOUSEHOLD DURABLES (0.8%) Black & Decker Corp. 5,180 208,754 Centex Corp. 1,400 15,316 D. R. Horton, Inc. 3,266 42,621 Harman International Industries, Inc. 1,074 19,536 Jacobs Engineering Group, Inc.(a) 980 37,279 KB HOME 850 15,360 Leggett & Platt, Inc. 8,470 121,629 Lennar Corp., Class A 1,710 16,655 Newell Rubbermaid, Inc. 11,240 117,458 Pulte Homes, Inc. 1,750 20,143 Snap-on, Inc. 510 17,299 Stanley Works 750 28,523 Whirlpool Corp. 4,703 212,387 ------------ 872,960 ------------ HOUSEHOLD PRODUCTS (1.8%) Clorox Co. 1,640 91,922 Colgate-Palmolive Co. 6,880 405,920 Kimberly-Clark Corp. 4,210 206,879 Procter & Gamble Co. 24,241 1,198,475 ------------ 1,903,196 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.3%) Constellation Energy Group 10,440 251,395 Dynegy, Inc., Class A(a) 4,620 8,224 The AES Corp.(a) 8,350 59,034 ------------ 318,653 ------------ INDUSTRIAL CONGLOMERATES (1.7%) 3M Co. 9,104 524,390 General Electric Co. 90,750 1,147,988 Textron, Inc. 10,890 116,850 ------------ 1,789,228 ------------ INSURANCE (4.0%) AFLAC, Inc. 4,050 117,005 American International Group, Inc. 205,590 283,714 Aon Corp. 2,320 97,904 Assurant, Inc. 3,700 90,428 Chubb Corp. 3,110 121,134 Cincinnati Financial Corp. 4,472 107,104 Genworth Financial, Inc., Class A 112,500 265,500 Hartford Financial Services Group, Inc. 29,950 343,526 Lincoln National Corp. 16,916 190,136 Marsh & McLennan Cos., Inc. 4,600 97,014 MBIA, Inc.(a) 3,240 15,325 MetLife, Inc. 6,660 198,135 Principal Financial Group, Inc. 6,720 109,805 Progressive Corp.(a) 19,160 292,765 Prudential Financial, Inc. 7,675 221,654 The Allstate Corp. 10,090 235,400 The Travelers Cos., Inc. 4,980 204,877 Torchmark Corp. 1,160 34,023 Unum Group 3,290 53,759 XL Capital Ltd., Class A 115,260 1,096,123 ------------ 4,175,331 ------------ INTERNET & CATALOG RETAIL (0.1%) Expedia, Inc.(a) 3,660 49,813 ------------ INTERNET SOFTWARE & SERVICES (2.6%) Akamai Technologies, Inc.(a) 19,120 421,023 Amazon.com, Inc.(a) 6,710 540,289 Google, Inc., Class A(a) 2,842 1,125,347 McAfee, Inc.(a) 1,360 51,054 Salesforce.com, Inc.(a) 9,110 389,999 VeriSign, Inc.(a) 10,330 212,591 ------------ 2,740,303 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 20 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- IT SERVICES (1.5%) Affiliated Computer Services, Inc., Class A(a) 1,090 $ 52,734 Automatic Data Processing, Inc. 4,710 165,792 Cognizant Technology Solutions Corp., Class A(a) 17,410 431,594 Computer Sciences Corp.(a) 1,590 58,766 Convergys Corp.(a) 1,890 19,108 Fidelity National Information Services, Inc. 1,886 33,665 Fiserv, Inc.(a) 5,350 199,662 Paychex, Inc. 10,560 285,226 Western Union Co. 19,000 318,250 ------------ 1,564,797 ------------ LEISURE EQUIPMENT & PRODUCTS (0.2%) Eastman Kodak Co. 26,830 81,832 Hasbro, Inc. 1,330 35,458 Mattel, Inc. 7,340 109,806 ------------ 227,096 ------------ LIFE SCIENCES TOOLS AND SERVICES (0.2%) Millipore Corp.(a) 780 46,098 Thermo Fisher Scientific, Inc.(a) 3,670 128,744 ------------ 174,842 ------------ MACHINERY (1.8%) Caterpillar, Inc. 10,720 381,418 Cummins, Inc. 1,830 62,220 Danaher Corp. 4,430 258,889 Deere & Co. 3,572 147,381 Dover Corp. 1,780 54,788 Eaton Corp. 1,550 67,890 Flowserve Corp. 440 29,876 Illinois Tool Works, Inc. 3,490 114,472 Ingersoll-Rand Co., Class A 8,877 193,252 ITT Industries, Inc. 1,740 71,357 PACCAR, Inc. 11,485 407,029 Pall Corp. 1,130 29,843 Parker Hannifin Corp. 1,425 64,624 The Manitowoc Co., Inc. 1,180 7,021 ------------ 1,890,060 ------------ MEDIA (1.2%) CBS Corp., Class B 45,800 322,432 Gannett Co., Inc. 41,640 162,812 Interpublic Group of Cos., Inc.(a) 5,610 35,119 McGraw Hill Cos., Inc. 9,880 297,882 Meredith Corp. 7,670 192,363 New York Times Co., Class A 3,750 20,175 Omnicom Group, Inc. 3,310 104,166 Scripps Networks Interactive, Class A 1,970 54,057 The Washington Post Co., Class B 210 87,904 ------------ 1,276,910 ------------ METALS & MINING (2.0%) AK Steel Holding Corp. 16,280 211,803 Alcoa, Inc. 26,020 236,001 Allegheny Technologies, Inc. 870 28,475 Freeport-McMoRan Copper & Gold, Inc., Class B 15,289 652,076 Newmont Mining Corp. 3,700 148,888 Nucor Corp. 9,110 370,686 Titanium Metals Corp. 42,450 288,235 United States Steel Corp. 4,690 124,520 ------------ 2,060,684 ------------ MULTI-UTILITIES (1.9%) Ameren Corp. 5,550 127,761 CenterPoint Energy, Inc. 11,250 119,700 CMS Energy Corp. 5,100 61,302 Consolidated Edison, Inc. 4,340 161,144 Dominion Resources, Inc. 4,984 150,318 DTE Energy Co. 4,440 131,291 Duke Energy Corp. 16,346 225,738 Integrys Energy Group, Inc. 3,668 96,872 NiSource, Inc. 18,630 204,744 PG&E Corp. 3,210 119,155 Public Service Enterprise Group, Inc. 4,676 139,532 SCANA Corp. 2,710 81,896 Sempra Energy 2,290 105,386 TECO Energy, Inc. 9,760 103,358 Wisconsin Energy Corp. 1,120 44,755 Xcel Energy, Inc. 7,500 138,300 ------------ 2,011,252 ------------ MULTILINE RETAIL (1.8%) Big Lots, Inc.(a) 1,050 29,022 Family Dollar Stores, Inc. 1,440 47,794 J.C. Penney Co., Inc. 8,910 273,448 Kohl's Corp.(a) 2,720 123,352 Macy's, Inc. 37,292 510,154 Nordstrom, Inc. 1,620 36,661 Sears Holdings Corp.(a) 8,870 554,109 Target Corp. 6,410 264,476 ------------ 1,839,016 ------------ OFFICE ELECTRONICS (0.1%) Xerox Corp. 10,230 62,505 ------------ OIL, GAS & CONSUMABLE FUELS (9.5%) Anadarko Petroleum Corp. 7,320 315,199 Apache Corp. 5,100 371,586 Cabot Oil & Gas Corp., Class A 6,820 205,896 Chesapeake Energy Corp. 17,360 342,165 Chevron Corp. 18,839 1,245,258 ConocoPhillips 12,209 500,569
SEE NOTES TO FINANCIAL STATEMENTS. 21 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- CONSOL Energy, Inc. 6,070 $ 189,870 Denbury Resources, Inc.(a) 10,240 166,707 Devon Energy Corp. 5,380 278,953 El Paso Corp. 6,790 46,851 EOG Resources, Inc. 5,120 325,018 EQT Corp. 980 32,957 Exxon Mobil Corp. 42,652 2,843,609 Hess Corp. 5,300 290,387 Marathon Oil Corp. 5,870 174,339 Massey Energy Co. 730 11,614 Murphy Oil Corp. 6,620 315,840 Noble Energy, Inc. 1,260 71,505 Occidental Petroleum Corp. 6,392 359,806 Peabody Energy Corp. 2,180 57,530 Pioneer Natural Resources Co. 1,410 32,599 Range Resources Corp. 4,330 173,070 Southwestern Energy Co.(a) 2,410 86,423 Sunoco, Inc. 8,860 234,879 Tesoro Corp. 32,340 493,185 Valero Energy Corp. 13,620 270,221 Williams Cos., Inc. 5,280 74,448 XTO Energy, Inc. 11,915 412,974 ------------ 9,923,458 ------------ PAPER & FOREST PRODUCTS (0.7%) International Paper Co. 20,930 264,974 MeadWestvaco Corp. 19,810 310,224 Weyerhaeuser Co. 5,330 187,936 ------------ 763,134 ------------ PERSONAL PRODUCTS (0.4%) Avon Products, Inc. 10,870 247,401 The Estee Lauder Cos., Inc., Class A 6,140 183,586 ------------ 430,987 ------------ PHARMACEUTICALS (4.0%) Abbott Laboratories 13,280 555,768 Allergan, Inc. 2,890 134,847 Bristol-Myers Squibb Co. 17,270 331,584 Eli Lilly & Co. 9,180 302,206 Forest Laboratories, Inc.(a) 9,150 198,464 Johnson & Johnson 25,240 1,321,566 King Pharmaceuticals, Inc.(a) 3,280 25,846 Merck & Co., Inc. 17,730 429,775 Mylan Laboratories, Inc.(a) 3,810 50,483 Schering-Plough Corp. 13,260 305,245 Watson Pharmaceuticals, Inc.(a) 1,530 47,338 Wyeth 11,340 480,816 ------------ 4,183,938 ------------ REAL ESTATE - OPERATIONS AND DEVELOPMENT (0.4%) CB Richard Ellis Group, Inc., Class A(a) 53,510 401,325 ------------ REAL ESTATE INVESTMENT TRUST (2.0%) Apartment Investment & Management Co., Class A 11,779 85,987 AvalonBay Communities, Inc. 1,801 102,315 Boston Properties, Inc. 3,030 149,743 Developers Diversified Realty Corp. 240 991 Equity Residential 5,090 116,510 HCP, Inc. 6,550 143,773 Health Care REIT, Inc. 3,530 120,267 Host Hotels & Resorts, Inc. 33,620 258,538 Kimco Realty Corp. 8,460 101,689 Plum Creek Timber Co., Inc. 1,510 52,125 ProLogis 51,010 464,701 Public Storage, Inc. 997 66,659 Simon Property Group, Inc. 3,763 194,171 Ventas, Inc. 1,150 32,936 Vornado Realty Trust 3,223 157,572 ------------ 2,047,977 ------------ ROAD & RAIL (0.6%) Burlington Northern Santa Fe Corp. 2,390 161,277 CSX Corp. 3,410 100,902 Norfolk Southern Corp. 3,190 113,819 Ryder System, Inc. 2,380 65,902 Union Pacific Corp. 4,310 211,794 ------------ 653,694 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (2.6%) Advanced Micro Devices, Inc.(a) 5,510 19,891 Altera Corp. 11,600 189,196 Analog Devices, Inc. 6,840 145,555 Applied Materials, Inc. 12,470 152,259 Broadcom Corp., Class A(a) 3,760 87,194 Intel Corp. 45,960 725,249 KLA-Tencor Corp. 1,670 46,326 Linear Technology Corp. 2,070 45,085 LSI Logic Corp.(a) 6,630 25,459 MEMC Electronic Materials, Inc.(a) 10,790 174,798 Microchip Technology, Inc. 5,610 129,030 Micron Technology, Inc.(a) 11,640 56,803 National Semiconductor Corp. 20,890 258,409 Novellus Systems, Inc.(a) 1,180 21,311 NVIDIA Corp.(a) 5,665 65,034 QLogic Corp.(a) 2,270 32,189 Teradyne, Inc.(a) 1,870 11,108 Texas Instruments, Inc. 22,600 408,156 Xilinx, Inc. 3,090 63,159 ------------ 2,656,211 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 22 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- SOFTWARE (3.8%) Adobe Systems, Inc.(a) 10,814 $ 295,763 Autodesk, Inc.(a) 13,800 275,172 BMC Software, Inc.(a) 10,910 378,250 CA, Inc. 4,280 73,830 Citrix Systems, Inc.(a) 2,050 58,487 Compuware Corp.(a) 18,320 137,034 Electronic Arts, Inc.(a) 3,460 70,411 Intuit, Inc.(a) 9,910 229,218 Microsoft Corp. 71,820 1,455,073 Novell, Inc.(a) 4,510 16,958 Oracle Corp. 41,351 799,728 Symantec Corp.(a) 7,762 133,894 ------------ 3,923,818 ------------ SPECIALTY RETAIL (3.2%) Abercrombie & Fitch Co., Class A 11,970 323,908 AutoNation, Inc.(a) 12,390 219,427 AutoZone, Inc.(a) 1,675 278,703 Bed Bath & Beyond, Inc.(a) 8,560 260,395 Best Buy Co., Inc. 2,950 113,221 GameStop Corp., Class A(a) 6,632 200,021 Gap, Inc. 4,220 65,579 Home Depot, Inc. 13,940 366,901 Limited Brands 16,510 188,544 Lowe's Cos., Inc. 11,910 256,065 O'Reilly Automotive, Inc.(a) 1,030 40,016 Office Depot, Inc.(a) 108,950 282,181 RadioShack Corp. 1,290 18,163 Staples, Inc. 6,455 133,102 The Sherwin-Williams Co. 3,850 218,064 Tiffany & Co. 1,160 33,570 TJX Cos., Inc. 13,410 375,078 ------------ 3,372,938 ------------ TEXTILES APPAREL & LUXURY GOODS (0.8%) Coach, Inc.(a) 17,160 420,420 NIKE, Inc., Class B 5,810 304,851 Polo Ralph Lauren Corp., Class A 640 34,458 VF Corp. 1,050 62,233 ------------ 821,962 ------------ THRIFTS & MORTGAGE FINANCE (0.1%) Hudson City Bancorp, Inc. 4,880 61,293 People's United Financial, Inc. 2,110 32,958 ------------ 94,251 ------------ TRADING COMPANIES & DISTRIBUTORS (0.2%) Fastenal Co. 5,630 215,967 W.W. Grainger, Inc. 430 36,068 ------------ 252,035 ------------ WIRELESS TELECOMMUNICATION SERVICES (0.3%) American Tower Corp., Class A(a) 4,140 131,486 Sprint Corp.(a) 30,622 133,512 ------------ 264,998 ------------ TOTAL COMMON STOCKS (COST $144,356,973) 103,769,476 ------------ SHORT-TERM INVESTMENT (0.4%) Fifth Third Institutional Government Money Market Fund, 0.32%(b) 406,255 406,255 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $406,255) 406,255 ------------ TOTAL INVESTMENTS (COST $144,763,228) 100.0% 104,175,731 OTHER ASSETS IN EXCESS OF LIABILITIES 0.0% 48,051 ------------ NET ASSETS 100.0% $104,223,782 ============
(a) Represents non-income producing security. (b) Variable rate security. Rate shown represents the rate as of April 30, 2009. REIT - Real Estate Investment Trust SEE NOTES TO FINANCIAL STATEMENTS. 23 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- COMMON STOCKS (99.5%) AEROSPACE & DEFENSE (1.1%) AAR Corp.(a) 3,150 $ 47,470 Aerovironment, Inc.(a) 1,770 41,878 Alliant Techsystems, Inc.(a) 1,910 152,131 American Science & Engineering, Inc. 880 53,029 Applied Signal Technology, Inc. 600 11,856 BE Aerospace, Inc.(a) 4,080 44,023 Ceradyne, Inc.(a) 4,840 83,442 Cubic Corp. 670 19,236 Curtiss-Wright Corp. 2,710 86,639 Esterline Technologies Corp.(a) 1,250 32,938 GenCorp, Inc.(a) 1,850 4,440 Kaman Corp., Class A 1,080 18,263 Moog, Inc., Class A(a) 1,810 48,472 Orbital Sciences Corp.(a) 4,120 63,695 Teledyne Technologies, Inc.(a) 2,170 69,288 Triumph Group, Inc. 710 29,344 ----------- 806,144 ----------- AIR FREIGHT & LOGISTICS (0.1%) Forward Air Corp. 2,810 46,843 Hub Group, Inc., Class A(a) 1,420 32,660 ----------- 79,503 ----------- AIRLINES (0.3%) AirTran Holdings, Inc.(a) 3,900 27,105 Alaska Air Group, Inc.(a) 2,850 47,823 JetBlue Airways Corp.(a) 8,940 44,074 SkyWest, Inc. 4,970 59,839 ----------- 178,841 ----------- AUTO COMPONENTS (0.9%) BorgWarner, Inc. 4,890 141,566 Drew Industries, Inc.(a) 3,830 54,692 Gentex Corp. 5,040 67,385 LKQ Corp.(a) 5,800 98,484 Standard Motor Products, Inc. 50,560 202,240 Superior Industries International, Inc. 5,750 86,710 ----------- 651,077 ----------- AUTO PARTS & EQUIPMENT (0.2%) ATC Technology Corp.(a) 900 14,301 Spartan Motors, Inc. 15,390 124,197 ----------- 138,498 ----------- AUTOMOBILES (0.1%) Thor Industries, Inc. 4,130 94,949 Winnebago Industries, Inc. 1,130 9,955 ----------- 104,904 ----------- BEVERAGES (0.4%) Hansen Natural Corp.(a) 5,650 230,294 PepsiAmericas, Inc. 2,330 57,248 ----------- 287,542 ----------- BIOTECHNOLOGY (0.8%) ArQule, Inc.(a) 1,120 4,984 Martek Biosciences Corp. 3,650 66,503 Neogen Corp.(a) 540 12,242 OSI Pharmaceuticals, Inc.(a) 2,350 78,889 Regeneron Pharmaceuticals, Inc.(a) 2,510 33,283 Savient Pharmaceuticals, Inc.(a) 1,820 9,610 United Therapeutics Corp.(a) 2,450 153,884 Vertex Pharmaceuticals, Inc.(a) 6,950 214,199 ----------- 573,594 ----------- BUILDING PRODUCTS (0.6%) Apogee Enterprises, Inc. 5,620 75,308 Eagle Materials, Inc. 4,770 132,606 Griffon Corp.(a) 2,770 24,016 Lennox International, Inc. 1,900 60,591 NCI Building Systems, Inc.(a) 1,030 4,068 Quanex Building Products Corp. 2,175 22,294 Simpson Manufacturing Co., Inc. 2,540 56,540 Universal Forest Products, Inc. 810 27,184 ----------- 402,607 ----------- CAPITAL MARKETS (1.4%) Apollo Investment Corp. 11,760 56,448 Eaton Vance Corp. 7,710 211,023 Investment Technology Group, Inc.(a) 1,990 45,332 Jefferies Group, Inc. 5,110 100,003 LaBranche & Co., Inc.(a) 1,780 7,440 optionsXpress Holdings, Inc. 7,060 116,207 Piper Jaffray Cos., Inc.(a) 770 26,696 Raymond James Financial, Inc. 4,150 65,113 SEI Investments Co. 8,930 125,288 SWS Group, Inc. 1,335 17,075 Tradestation Group, Inc.(a) 15,780 127,976 Waddell & Reed Financial, Inc., Class A 3,760 84,262 ----------- 982,863 ----------- CHEMICALS (2.7%) A. Schulman, Inc. 3,500 54,915 Airgas, Inc. 3,240 139,709 Albemarle Corp. 3,760 100,843 American Vanguard Corp. 550 7,035 Arch Chemicals, Inc. 1,100 26,598 Ashland, Inc. 15,180 333,353 Balchem Corp. 1,600 39,824 Cabot Corp. 4,940 72,124
SEE NOTES TO FINANCIAL STATEMENTS. 24 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Cytec Industries, Inc. 3,470 $ 68,914 FMC Corp. 4,050 197,357 H.B. Fuller Co. 1,950 34,437 Lubrizol Corp. 2,800 121,016 Minerals Technologies, Inc. 850 31,612 NewMarket Corp. 570 35,910 Olin Corp. 3,270 41,202 OM Group, Inc.(a) 1,420 39,561 Penford Corp. 530 2,369 PolyOne Corp.(a) 18,300 50,142 Quaker Chemical Corp. 5,660 66,222 RPM International, Inc. 8,040 111,113 Sensient Technologies Corp. 2,080 48,630 Stepan Co. 290 11,475 Terra Industries, Inc. 3,940 104,410 The Scotts Miracle-Gro Co., Class A 1,760 59,435 The Valspar Corp. 4,320 103,680 Zep, Inc. 655 8,862 ----------- 1,910,748 ----------- COMMERCIAL BANKS (3.6%) Associated Bancorp 6,540 101,174 BancorpSouth, Inc. 3,100 72,075 Bank of Hawaii Corp. 1,970 69,226 Boston Private Financial Holdings, Inc. 2,680 12,355 Cascade Bancorp 6,350 10,541 Cathay General Bancorp 2,100 23,562 Central Pacific Financial Corp. 2,080 12,189 City National Corp. 1,800 65,880 Colonial BancGroup, Inc. 66,010 50,168 Columbia Banking System, Inc. 940 9,306 Commerce Bancshares, Inc. 2,711 89,734 Community Bank System, Inc. 1,480 24,346 Cullen/Frost Bankers, Inc. 2,470 116,312 East West Bancorp, Inc. 5,330 36,404 First Bancorp 3,530 19,450 First Commonwealth Financial Corp. 3,640 31,559 First Financial Bancorp 1,890 20,393 First Financial Bankshares, Inc. 890 43,859 First Midwest Bancorp, Inc. 4,080 36,149 FirstMerit Corp. 3,460 67,159 Frontier Financial Corp. 25,700 36,494 Fulton Financial Corp. 6,160 40,718 Glacier Bancorp, Inc. 2,260 34,623 Hancock Holding Co. 950 35,977 Hanmi Financial Corp. 6,250 9,688 Home Bancshares, Inc. 550 12,128 Independent Bank Corp. - Michigan 21,935 39,483 Independent Bank Corp. - Massachusetts 770 15,369 International Bancshares Corp. 2,040 27,560 Irwin Financial Corp.(a) 49,440 62,294 Nara Bancorp, Inc. 5,410 20,071 National Penn Bancshares, Inc. 3,690 29,852 NBT Bancorp, Inc. 1,120 26,522 Old National Bancorp 3,030 41,299 PacWest Bancorp 2,570 37,445 Pinnacle Financial Partners, Inc.(a) 2,870 51,201 PrivateBancorp, Inc. 2,250 45,563 Prosperity Bancshares, Inc. 1,710 47,487 Provident Bankshares Corp. 5,650 49,663 S&T Bancorp, Inc. 860 15,368 Signature Bank(a) 2,660 72,325 South Financial Group, Inc. 13,800 22,908 Sterling Bancorp 1,180 13,499 Sterling Bancshares, Inc. 2,230 14,830 Sterling Financial Corp. 17,885 57,053 Susquehanna Bancshares, Inc. 7,370 59,402 SVB Financial Group(a) 2,470 51,277 Synovus Financial Corp. 10,310 33,301 TCF Financial Corp. 5,330 74,140 Tompkins Financial Corp. 340 14,331 Trustmark Corp. 1,600 34,784 UCBH Holdings, Inc. 6,390 8,179 UMB Financial Corp. 1,200 54,924 Umpqua Holdings Corp. 5,560 53,320 United Bankshares, Inc. 1,550 40,207 United Community Banks, Inc. 1,606 10,359 Valley National Bancorp 5,250 75,967 Westamerica Bancorp 1,230 65,965 Whitney Holding Corp. 5,700 68,172 Wilmington Trust Corp. 3,920 56,879 Wilshire Bancorp, Inc. 8,530 34,461 Wintrust Financial Corp. 1,360 23,120 ----------- 2,530,049 ----------- COMMERCIAL SERVICES & SUPPLIES (4.6%) ABM Industries, Inc. 1,940 33,989 Administaff, Inc. 960 25,594 Bowne & Co., Inc. 20,481 104,658 Brady Corp. 2,200 46,354 Brink's Home Security Holdings, Inc.(a) 4,910 130,508 CDI Corp. 6,290 75,165 Clean Harbors, Inc.(a) 1,740 87,174 Coinstar, Inc.(a) 2,310 82,213 Consolidated Graphics, Inc.(a) 2,440 47,385 Copart, Inc.(a) 3,180 99,820 Corrections Corp. of America(a) 5,050 71,356 Darling International, Inc.(a) 10,950 62,634 Deluxe Corp. 5,750 83,375 Forrester Research, Inc.(a) 600 15,246 FTI Consulting, Inc.(a) 2,570 141,042 G & K Services, Inc., Class A 970 24,221
SEE NOTES TO FINANCIAL STATEMENTS. 25 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Healthcare Services Group, Inc. 1,475 $ 26,373 Heartland Payment Systems, Inc. 5,600 45,024 Heidrick & Struggles International, Inc. 790 13,351 Herman Miller, Inc. 6,880 102,306 HMS Holdings Corp.(a) 990 29,680 HNI Corp. 6,010 93,155 Kelly Services, Inc., Class A 9,580 108,829 Korn/Ferry International, Inc.(a) 4,980 52,738 Landauer, Inc. 410 21,722 Lender Processing Services, Inc. 3,430 98,304 Manpower, Inc. 4,210 181,409 Mine Safety Appliances Co. 1,340 33,031 Mobile Mini, Inc.(a) 1,340 18,358 Navigant Consulting, Inc.(a) 3,780 55,604 On Assignment, Inc.(a) 1,130 3,978 Rollins, Inc. 3,670 66,060 SAIC, Inc.(a) 7,980 144,438 School Specialty, Inc.(a) 890 16,705 Spherion Corp.(a) 54,080 194,147 Standard Register Co. 7,850 40,977 Tetra Tech, Inc.(a) 2,280 55,997 The Brink's Co. 1,670 47,344 The Corporate Executive Board Co. 4,780 82,598 The Geo Group, Inc.(a) 4,250 70,677 Ticketmaster Entertainment, Inc.(a) 1,580 8,311 TrueBlue, Inc.(a) 1,550 15,050 United Stationers, Inc.(a) 1,070 35,021 Viad Corp. 3,550 67,734 Volt Information Sciences, Inc.(a) 12,325 88,493 Waste Connections, Inc.(a) 3,165 81,594 Watson Wyatt & Co. Holdings 2,200 116,710 Wright Express Corp.(a) 7,060 161,533 ----------- 3,307,985 ----------- COMMUNICATIONS EQUIPMENT (1.5%) ADC Telecommunications, Inc.(a) 4,270 31,427 ADTRAN, Inc. 2,100 44,415 Arris Group, Inc.(a) 4,429 47,257 Avocent Corp.(a) 1,910 27,580 Bel Fuse, Inc. 2,210 35,758 Belden CDT, Inc. 2,090 33,691 Black Box Corp. 880 24,086 Blue Coat Systems, Inc.(a) 1,600 21,216 CommScope, Inc.(a) 8,540 214,354 Comtech Telecommunications Corp.(a) 1,930 64,597 Digi International, Inc.(a) 790 5,743 Dycom Industries, Inc.(a) 1,600 13,472 EMS Technologies, Inc.(a) 700 13,335 F5 Networks, Inc.(a) 4,870 132,805 Harmonic, Inc.(a) 3,270 23,969 NETGEAR, Inc.(a) 5,730 91,737 Network Equipment Technologies, Inc.(a) 920 3,616 PCTEL, Inc. 750 3,653 Plantronics, Inc. 4,710 60,005 Polycom, Inc.(a) 3,400 63,376 Symmetricom, Inc.(a) 4,520 22,510 Tekelec(a) 2,250 34,875 Tollgrade Communications, Inc.(a) 500 2,975 ViaSat, Inc.(a) 2,330 53,567 ----------- 1,070,019 ----------- COMPUTERS & PERIPHERALS (1.1%) Adaptec, Inc.(a) 3,850 11,011 Avid Technology, Inc.(a) 1,470 16,273 Diebold, Inc. 2,810 74,268 Hutchinson Technology, Inc.(a) 10,690 20,525 Imation Corp. 4,730 47,300 Integral Systems, Inc.(a) 2,130 14,122 Intermec, Inc.(a) 1,950 23,556 NCR Corp.(a) 6,290 63,843 Novatel Wireless, Inc.(a) 1,100 7,535 Palm, Inc.(a) 5,040 52,870 Stratasys, Inc.(a) 2,800 26,208 Synaptics, Inc.(a) 2,660 86,397 Western Digital Corp.(a) 13,470 316,814 ----------- 760,722 ----------- CONSTRUCTION & ENGINEERING (1.1%) AECOM Technology Corp.(a) 3,540 91,084 EMCOR Group, Inc.(a) 2,650 55,093 Granite Construction, Inc. 1,260 49,707 Insituform Technologies, Inc., Class A(a) 1,240 19,009 KBR, Inc. 6,630 103,561 Quanta Services, Inc.(a) 7,730 175,703 Shaw Group, Inc.(a) 3,330 111,655 URS Corp.(a) 3,380 148,923 ----------- 754,735 ----------- CONSTRUCTION MATERIALS (0.3%) Headwaters, Inc.(a) 7,520 18,951 Martin Marietta Materials, Inc. 1,670 140,330 Texas Industries, Inc. 1,250 39,975 ----------- 199,256 ----------- CONSUMER FINANCE (0.3%) AmeriCredit Corp.(a) 5,370 54,613 Cash America International, Inc. 1,220 27,279 First Cash Financial Services, Inc.(a) 2,530 41,593 Rewards Network, Inc.(a) 940 3,506 World Acceptance Corp.(a) 2,490 73,904 ----------- 200,895 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 26 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- CONTAINERS & PACKAGING (1.3%) AptarGroup, Inc. 2,650 $ 82,230 Greif, Inc., Class A 1,510 68,358 Myers Industries, Inc. 6,200 62,186 Packaging Corp. of America 7,220 114,581 Rock-Tenn Co., Class A 1,570 59,283 Sonoco Products Co. 4,130 100,813 Temple-Inland, Inc. 37,210 444,287 ----------- 931,738 ----------- DISTRIBUTORS (0.0%) Audiovox Corp., Class A(a) 1,990 11,064 MWI Veterinary Supply, Inc.(a) 520 16,162 ----------- 27,226 ----------- DIVERSIFIED CONSUMER SERVICES (1.8%) American Public Education, Inc.(a) 660 23,760 Capella Education Co.(a) 1,080 55,490 Career Education Corp.(a) 4,560 100,502 Corinthian Colleges, Inc.(a) 3,280 50,512 DeVry, Inc. 2,500 106,400 Hillenbrand, Inc. 4,470 81,265 Interval Leisure Group, Inc.(a) 1,100 8,811 ITT Educational Services, Inc.(a) 1,885 189,951 Matthews International Corp., Class A 1,180 36,958 NutriSystem, Inc. 7,650 105,111 Pre-Paid Legal Services, Inc.(a) 1,680 61,874 Regis Corp. 5,240 100,294 Service Corp. International 8,880 40,226 Sotheby's 13,760 159,754 Strayer Education, Inc. 799 151,339 Universal Technical Institute, Inc.(a) 2,690 38,306 ----------- 1,310,553 ----------- DIVERSIFIED FINANCIAL SERVICES (1.2%) Affiliated Managers Group, Inc.(a) 3,100 176,235 Financial Federal Corp. 1,210 29,778 Greenhill & Co., Inc. 1,910 148,082 National Financial Partners Corp. 52,510 370,721 Portfolio Recovery Associates, Inc.(a) 2,050 71,688 Stifel Financial Corp.(a) 1,460 71,876 ----------- 868,380 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES (0.3%) Cincinnati Bell, Inc.(a) 7,770 21,678 FairPoint Communications, Inc. 23,210 24,138 General Communication, Inc., Class A(a) 1,510 11,567 Iowa Telecommunitcations Services, Inc. 2,260 29,787 NeuStar, Inc., Class A(a) 6,280 119,383 ----------- 206,553 ----------- ELECTRIC UTILITIES (1.0%) ALLETE, Inc. 1,060 27,602 Central Vermont Public Service Corp. 1,760 30,202 Cleco Corp. 2,370 49,983 DPL, Inc. 4,410 98,916 El Paso Electric Co.(a) 1,540 21,252 Great Plains Energy, Inc. 7,201 104,199 Hawaiian Electric Industries, Inc. 3,590 55,789 IDACORP, Inc. 1,810 43,386 NV Energy, Inc. 11,240 115,210 UIL Holdings Corp. 1,990 45,949 Unisource Energy Corp. 1,460 38,427 Westar Energy, Inc. 6,080 106,582 ----------- 737,497 ----------- ELECTRICAL EQUIPMENT (1.2%) A.O. Smith Corp. 1,030 32,023 Acuity Brands, Inc. 1,690 48,570 AMETEK, Inc. 4,970 160,084 AZZ, Inc.(a) 410 12,681 Baldor Electric Co. 3,500 81,200 C&D Technologies, Inc.(a) 9,090 19,907 Hubbell, Inc., Class B 2,360 78,352 MagneTek, Inc.(a) 1,070 1,872 REGAL-BELOIT Corp. 1,340 54,444 Roper Industries, Inc. 4,120 187,831 Thomas & Betts Corp.(a) 4,390 136,617 Vicor Corp. 570 3,061 Woodward Governor Co. 2,260 45,110 ----------- 861,752 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS (4.2%) Agilysys, Inc. 19,850 119,695 Anixter International, Inc.(a) 1,300 51,714 Arrow Electronics, Inc.(a) 6,990 158,953 Avnet, Inc.(a) 7,870 172,274 Axsys Technologies, Inc.(a) 840 35,204 Benchmark Electronics, Inc.(a) 3,270 39,665 Brightpoint, Inc.(a) 18,530 96,541 Checkpoint Systems, Inc.(a) 1,690 20,534 Cognex Corp. 1,630 22,934 CTS Corp. 4,880 29,622 Daktronics, Inc. 5,320 48,093 Electro Scientific Industries, Inc.(a) 7,830 67,338 ESCO Technologies, Inc.(a) 1,040 43,243 FARO Technologies, Inc.(a) 3,270 49,573 Gerber Scientific, Inc.(a) 14,750 58,263 II-VI, Inc.(a) 2,650 63,520 Ingram Micro, Inc.(a) 11,740 170,465 Insight Enterprises, Inc.(a) 27,700 158,444
SEE NOTES TO FINANCIAL STATEMENTS. 27 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Itron, Inc.(a) 1,510 $ 69,460 Keithley Instruments, Inc. 33,410 115,599 Littelfuse, Inc.(a) 1,050 17,210 LoJack Corp.(a) 3,360 11,491 Mercury Computer Systems, Inc.(a) 870 7,064 Methode Electronics, Inc. 2,640 15,893 Mettler-Toledo International, Inc.(a) 1,610 99,224 MTS Systems Corp. 800 16,904 National Instruments Corp. 2,310 50,912 Newport Corp.(a) 1,130 5,639 Park Electrochemical Corp. 3,300 67,980 Plexus Corp.(a) 4,610 102,111 RadiSys Corp.(a) 900 6,453 Rogers Corp.(a) 860 21,887 ScanSource, Inc.(a) 1,360 33,606 SYNNEX Corp.(a) 13,450 289,578 Tech Data Corp.(a) 6,420 184,832 Technitrol, Inc. 42,660 173,626 Trimble Navigation Ltd.(a) 5,900 126,496 TTM Technologies, Inc.(a) 8,240 61,141 Vishay Intertechnology, Inc.(a) 16,210 95,153 ----------- 2,978,334 ----------- ENERGY EQUIPMENT & SERVICES (2.9%) Atwood Oceanics, Inc.(a) 2,330 52,006 Basic Energy Services, Inc.(a) 7,940 80,988 Bristow Group, Inc.(a) 1,350 30,726 CARBO Ceramics, Inc. 1,590 48,829 Dril-Quip, Inc.(a) 2,630 90,419 Exterran Holdings, Inc.(a) 2,930 60,504 FMC Technologies, Inc.(a) 6,560 224,549 Gulf Island Fabrication, Inc. 650 8,411 Helix Energy Solutions Group, Inc.(a) 14,040 127,624 Helmerich & Payne, Inc. 6,580 202,795 ION Geophysical Corp.(a) 14,890 37,225 Lufkin Industries, Inc. 1,430 49,907 Matrix Service Co.(a) 1,070 10,251 NATCO Group, Inc., Class A(a) 3,010 72,421 Oceaneering International, Inc.(a) 3,150 143,545 Patterson-UTI Energy, Inc. 12,510 159,002 Pride International, Inc.(a) 6,920 157,084 SEACOR Holdings, Inc.(a) 1,350 88,722 Superior Energy Services, Inc.(a) 5,540 106,423 Superior Well Services, Inc.(a) 6,340 67,838 TETRA Technologies, Inc.(a) 10,480 59,946 Tidewater, Inc. 2,060 89,095 Unit Corp.(a) 4,500 122,805 ----------- 2,091,115 ----------- FOOD & STAPLES RETAILING (0.6%) BJ's Wholesale Club, Inc.(a) 2,350 78,349 Casey's General Stores, Inc. 2,020 53,752 Great Atlantic & Pacific Tea Co., Inc.(a) 16,280 119,495 Nash Finch Co. 490 14,352 Ruddick Corp. 1,660 42,596 Spartan Stores, Inc. 2,400 39,048 United Natural Foods, Inc.(a) 1,910 43,510 ----------- 391,102 ----------- FOOD PRODUCTS (1.3%) Cal-Maine Foods, Inc. 490 12,970 Corn Products International, Inc. 3,050 72,895 Diamond Foods, Inc. 2,230 58,404 Flowers Foods, Inc. 3,055 70,571 Green Mountain Coffee Roasters, Inc.(a) 1,720 124,373 Hain Celestial Group, Inc.(a) 1,720 28,707 J & J Snack Foods Corp. 570 22,093 Lancaster Colony Corp. 860 37,668 Lance, Inc. 1,220 28,255 Mannatech, Inc. 26,890 117,510 Peet's Coffee & Tea, Inc.(a) 490 13,367 Ralcorp Holdings, Inc.(a) 2,350 134,326 Sanderson Farms, Inc. 720 28,728 Smithfield Foods, Inc.(a) 12,170 105,149 Tootsie Roll Industries, Inc. 978 23,814 TreeHouse Foods, Inc.(a) 1,300 34,567 ----------- 913,397 ----------- GAS UTILITIES (1.6%) AGL Resources, Inc. 3,980 124,057 Atmos Energy Corp. 5,200 128,492 Energen Corp. 2,810 101,497 Laclede Group, Inc. 960 33,293 National Fuel Gas Co. 3,160 103,364 New Jersey Resources Corp. 1,700 55,964 Northwest Natural Gas Co. 1,160 47,444 ONEOK, Inc. 5,640 147,599 Piedmont Natural Gas Co., Inc. 2,760 67,399 South Jersey Industries, Inc. 1,240 43,040 Southern Union Co. 7,120 113,279 Southwest Gas Corp. 1,850 37,389 UGI Corp. 4,000 91,760 WGL Holdings, Inc. 2,010 62,591 ----------- 1,157,168 ----------- HEALTH CARE EQUIPMENT & SUPPLIES (3.2%) Abaxis, Inc.(a) 2,860 43,243 American Medical Systems Holdings, Inc.(a) 3,670 45,398 Analogic Corp. 670 24,388 Beckman Coulter, Inc. 2,600 136,656 Bio-Rad Laboratories, Inc., Class A(a) 830 57,843 CONMED Corp.(a) 1,180 15,718 Cooper Cos., Inc. 1,970 56,637 Cyberonics, Inc.(a) 990 13,108
SEE NOTES TO FINANCIAL STATEMENTS. 28 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Edwards Lifesciences Corp.(a) 2,300 $ 145,774 Gen-Probe, Inc.(a) 2,810 135,329 Greatbatch, Inc.(a) 1,010 21,250 Haemonetics Corp.(a) 1,090 56,277 Hill-Rom Holdings, Inc. 2,640 34,267 Hologic, Inc.(a) 13,280 197,341 ICU Medical, Inc.(a) 1,170 43,992 IDEXX Laboratories, Inc.(a) 3,330 130,869 Immucor, Inc.(a) 4,500 73,305 Integra LifeSciences Holdings(a) 1,840 47,509 Invacare Corp. 1,540 23,701 Kensey Nash Corp.(a) 680 14,239 Kinetic Concepts, Inc.(a) 5,550 137,418 Masimo Corp.(a) 1,890 54,621 Meridian Bioscience, Inc. 3,250 56,485 Merit Medical Systems, Inc.(a) 1,300 20,163 Natus Medical, Inc.(a) 3,310 29,062 Osteotech, Inc.(a) 830 3,171 Palomar Medical Technologies, Inc.(a) 9,600 82,656 ResMed, Inc.(a) 3,830 147,263 STERIS Corp. 2,400 57,840 SurModics, Inc.(a) 1,270 27,559 Symmetry Medical, Inc.(a) 4,670 33,904 Techne Corp. 2,060 117,873 Theragenics Corp.(a) 1,190 1,476 Thoratec Corp.(a) 2,210 64,222 Varian, Inc.(a) 1,300 42,926 West Pharmaceutical Services, Inc. 1,340 43,751 Zoll Medical Corp.(a) 900 14,472 ----------- 2,251,706 ----------- HEALTH CARE PROVIDERS & SERVICES (3.0%) Air Methods Corp.(a) 2,120 56,286 Almost Family, Inc.(a) 240 5,928 Amedisys, Inc.(a) 1,739 58,326 AMERIGROUP Corp.(a) 2,160 64,519 AMN Healthcare Services, Inc.(a) 2,080 14,331 AmSurg Corp.(a) 2,280 46,831 Bio-Reference Laboratories, Inc.(a) 460 11,808 Catalyst Health Solutions, Inc.(a) 3,780 85,239 Centene Corp.(a) 1,760 32,331 Chemed Corp. 2,180 92,279 CorVel Corp.(a) 350 7,875 Cross Country Healthcare, Inc.(a) 1,010 8,898 CryoLife, Inc.(a) 830 4,507 Gentiva Health Services, Inc.(a) 1,190 18,957 Health Net, Inc.(a) 9,870 142,523 HealthSpring, Inc.(a) 2,000 18,460 Healthways, Inc.(a) 6,260 65,292 Henry Schein, Inc.(a) 3,640 149,386 inVentiv Health, Inc.(a) 7,620 84,506 Kindred Healthcare, Inc.(a) 5,580 72,652 LCA-Vision, Inc. 21,620 124,315 LHC Group, Inc.(a) 1,710 39,022 LifePoint Hospitals, Inc.(a) 2,340 60,489 Lincare Holdings, Inc.(a) 4,400 106,172 Magellan Health Services, Inc.(a) 3,200 94,592 MedCath Corp.(a) 1,340 13,561 MEDNAX, Inc.(a) 2,640 94,776 Molina Healthcare, Inc.(a) 2,270 49,145 Odyssey Healthcare, Inc.(a) 1,220 12,639 Omnicare, Inc. 4,200 107,982 Owens & Minor, Inc. 1,660 57,569 PharMerica Corp.(a) 1,440 26,280 PSS World Medical, Inc.(a) 2,240 32,525 Psychiatric Solutions, Inc.(a) 2,340 45,373 RehabCare, Inc.(a) 870 14,529 Res-Care, Inc.(a) 1,080 17,302 VCA Antech, Inc.(a) 5,800 145,116 WellCare Health Plans, Inc.(a) 5,340 80,153 ----------- 2,162,474 ----------- HEALTH CARE TECHNOLOGY (0.1%) Computer Programs & Systems, Inc. 370 12,946 Eclipsys Corp.(a) 2,150 28,380 eResearchTechnology, Inc.(a) 5,420 27,480 Omnicell, Inc.(a) 1,350 11,880 Phase Forward, Inc.(a) 1,670 23,814 ----------- 104,500 ----------- HOTELS, RESTAURANTS & LEISURE (3.4%) Bob Evans Farms, Inc. 2,630 63,777 Brinker International, Inc. 11,340 200,945 California Pizza Kitchen, Inc.(a) 990 15,553 CEC Entertainment, Inc.(a) 2,230 67,926 Cheesecake Factory(a) 3,380 58,711 CKE Restaurants, Inc. 2,970 28,423 International Speedway Corp., Class A 1,490 35,283 Jack in the Box, Inc.(a) 2,400 59,016 LIFE TIME FITNESS, Inc.(a) 1,840 34,518 Marcus Corp. 990 12,573 O'Charley's, Inc. 76,540 533,484 P.F. Chang's China Bistro, Inc.(a) 2,280 68,810 Panera Bread Co., Class A(a) 2,070 115,941 Papa John's International, Inc.(a) 2,750 72,985 Red Robin Gourmet Burgers, Inc.(a) 890 21,849 Ruby Tuesday, Inc.(a) 91,700 704,256 Ruth's Hospitality Group, Inc.(a) 51,720 187,226 Sonic Corp.(a) 3,250 35,490 Texas Roadhouse, Inc., Class A(a) 1,760 20,029 The Steak n Shake Co.(a) 2,680 30,981 Wendy's/Arby's Group, Inc., Class A 15,270 76,350 ----------- 2,444,126 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 29 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- HOUSEHOLD DURABLES (1.5%) American Greetings Corp., Class A 6,000 $ 47,100 Ethan Allen Interiors, Inc. 6,000 80,700 Interface, Inc. 1,830 10,596 La-Z-Boy, Inc. 24,660 65,596 M.D.C. Holdings, Inc. 1,640 56,055 M/I Homes, Inc. 950 14,507 Meritage Homes Corp.(a) 4,450 92,604 Mohawk Industries, Inc.(a) 2,450 115,909 National Presto Industries, Inc. 700 49,882 NVR, Inc.(a) 381 192,546 Russ Berrie & Co., Inc.(a) 16,330 31,190 Ryland Group, Inc. 1,950 40,385 Skyline Corp. 400 8,292 Standard Pacific Corp.(a) 39,120 73,154 Toll Brothers, Inc.(a) 7,260 147,088 Tupperware Corp. 2,590 64,828 Universal Electronics, Inc.(a) 710 13,305 ----------- 1,103,737 ----------- HOUSEHOLD PRODUCTS (0.6%) Central Garden & Pet Co., Class A(a) 3,450 31,291 Church & Dwight Co., Inc. 3,370 183,362 Energizer Holdings, Inc.(a) 3,750 214,875 WD-40 Co. 770 20,836 ----------- 450,364 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.1%) Black Hills Corp. 2,680 53,278 ----------- INDUSTRIAL CONGLOMERATES (0.2%) Carlisle Cos., Inc. 2,570 58,468 Standex International Corp. 700 9,709 Teleflex, Inc. 1,630 70,057 Tredegar Corp. 870 15,295 ----------- 153,529 ----------- INSURANCE (3.6%) American Financial Group, Inc. 3,260 57,311 American Physicians Capital, Inc. 1,170 48,742 Amerisafe, Inc.(a) 2,580 39,629 Arthur J. Gallagher & Co. 3,830 86,098 Brown & Brown, Inc. 6,400 124,544 Delphi Financial Group, Inc., Class A 3,685 63,640 eHealth, Inc.(a) 4,810 92,304 Everest Re Group Ltd. 2,560 191,078 Fidelity National Financial, Inc., Class A 12,060 218,648 First American Financial Corp. 4,730 132,818 HCC Insurance Holdings, Inc. 6,170 147,586 Horace Mann Educators Corp. 7,630 66,991 Infinity Property & Casualty Corp. 540 19,030 Mercury General Corp. 1,480 49,994 Old Republic International Corp. 14,320 134,178 Presidential Life Corp. 4,750 50,778 ProAssurance Corp.(a) 1,370 60,198 Protective Life Corp. 11,780 100,955 Reinsurance Group of America, Inc. 3,070 97,595 RLI Corp. 750 36,023 Safety Insurance Group, Inc. 660 21,813 Selective Insurance Group, Inc. 2,230 32,915 StanCorp Financial Group, Inc. 2,120 58,152 Stewart Information Services Corp. 7,040 159,174 The Hanover Insurance Group, Inc. 2,750 82,445 The Navigators Group, Inc.(a) 570 25,867 Tower Group, Inc. 1,250 33,988 United Fire & Casualty Co. 1,000 18,670 Unitrin, Inc. 6,780 115,260 W.R. Berkley Corp. 6,900 164,979 Zenith National Insurance Corp. 1,655 37,717 ----------- 2,569,120 ----------- INTERNET & CATALOG RETAIL (0.2%) Netflix, Inc.(a) 3,240 146,804 ----------- INTERNET SOFTWARE & SERVICES (2.0%) Bankrate, Inc.(a) 1,990 49,750 Blue Nile, Inc.(a) 710 30,218 comScore, Inc.(a) 550 7,018 Concur Technologies, Inc.(a) 2,900 78,503 DealerTrack Holdings, Inc.(a) 7,240 109,903 Digital River, Inc.(a) 3,670 141,001 InfoSpace, Inc.(a) 10,750 71,273 J2 Global Communications, Inc.(a) 5,360 128,586 Perficient, Inc.(a) 14,290 99,601 PetMed Express, Inc.(a) 4,960 80,650 Priceline.com, Inc.(a) 2,000 194,180 Stamps.com, Inc.(a) 10,050 94,068 The Knot, Inc.(a) 8,530 77,367 United Online, Inc. 12,470 66,091 ValueClick, Inc.(a) 9,930 105,258 Websense, Inc.(a) 4,860 86,654 ----------- 1,420,121 ----------- IT SERVICES (2.4%) 3Com Corp.(a) 12,320 49,896 Acxiom Corp. 3,620 34,933 Alliance Data Systems Corp.(a) 3,230 135,240 Broadridge Financial Solutions, Inc. 5,640 109,134 CACI International, Inc., Class A(a) 1,720 68,026 Cerner Corp.(a) 3,360 180,768
SEE NOTES TO FINANCIAL STATEMENTS. 30 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Ciber, Inc.(a) 4,560 $ 14,729 CSG Systems International, Inc.(a) 1,280 18,560 CyberSource Corp.(a) 7,616 111,270 DST Systems, Inc.(a) 3,270 118,276 Gartner, Inc.(a) 3,800 51,338 Gevity HR, Inc. 82,810 327,928 Global Payments, Inc. 3,980 127,599 Hewitt Associates, Inc., Class A(a) 3,340 104,742 ManTech International Corp., Class A(a) 860 31,123 MAXIMUS, Inc. 710 28,634 MPS Group, Inc.(a) 3,040 24,442 SRA International, Inc., Class A(a) 2,110 32,473 Stanley, Inc.(a) 1,530 39,443 StarTek, Inc.(a) 15,760 64,931 Sykes Enterprises, Inc.(a) 2,660 52,296 ----------- 1,725,781 ----------- LEISURE EQUIPMENT & PRODUCTS (1.0%) Arctic Cat, Inc. 11,150 44,600 Brunswick Corp. 53,920 322,442 Callaway Golf Co. 2,750 20,763 JAKKS Pacific, Inc.(a) 1,300 16,445 MarineMax, Inc.(a) 29,950 136,272 Nautilus Group, Inc.(a) 7,800 7,800 Polaris Industries, Inc. 1,620 54,189 Pool Corp. 5,730 102,338 RC2 Corp.(a) 900 10,179 Sturm, Ruger & Co., Inc.(a) 730 8,986 ----------- 724,014 ----------- LIFE SCIENCES TOOLS AND SERVICES (0.6%) Affymetrix, Inc.(a) 6,910 32,408 Cambrex Corp.(a) 3,010 7,013 Charles River Laboratories International, Inc.(a) 2,770 76,591 Covance, Inc.(a) 2,610 102,521 Dionex Corp.(a) 1,490 93,870 Enzo Biochem, Inc.(a) 1,040 4,264 Kendle International, Inc.(a) 630 5,607 PAREXEL International Corp.(a) 2,130 21,108 Pharmaceutical Product Development, Inc. 5,730 112,365 ----------- 455,747 ----------- MACHINERY (4.2%) Actuant Corp., Class A 5,640 69,146 AGCO Corp.(a) 3,850 93,555 Albany International Corp., Class A 1,430 13,270 Applied Industrial Technologies, Inc. 1,420 31,950 Astec Industries, Inc.(a) 2,470 76,125 Barnes Group, Inc. 3,720 52,675 Briggs & Stratton Corp. 4,980 74,102 Bucyrus International, Inc. 5,360 116,366 Cascade Corp. 440 10,635 CIRCOR International, Inc. 780 20,069 CLARCOR, Inc. 2,050 63,714 Crane Co. 3,980 91,898 Donaldson Co., Inc. 4,050 133,609 EnPro Industries, Inc.(a) 960 15,322 Federal Signal Corp. 5,400 41,958 Gardner Denver, Inc.(a) 3,600 95,832 Graco, Inc. 4,730 111,581 Harsco Corp. 3,400 93,670 IDEX Corp. 3,390 85,598 Intevac, Inc.(a) 18,300 126,087 John Bean Technologies Corp. 10,215 112,569 Joy Global, Inc. 7,340 187,170 Kaydon Corp. 1,490 47,620 Kennametal, Inc. 3,110 63,600 Lincoln Electric Holdings, Inc. 2,320 103,310 Lindsay Manufacturing Co. 590 22,957 Lydall, Inc.(a) 2,090 8,966 Mueller Industries, Inc. 3,110 68,327 Nordson Corp. 1,490 54,057 Oshkosh Truck Corp. 21,300 204,480 Pentair, Inc. 4,070 108,425 Robbins & Myers, Inc. 1,490 28,236 SPX Corp. 2,130 98,342 Terex Corp.(a) 6,920 95,496 The Timken Co. 6,210 99,857 Toro Co. 2,840 86,279 Trinity Industries, Inc. 7,710 112,643 Valmont Industries, Inc. 690 44,008 Wabash National Corp. 16,500 20,625 Watts Water Technologies, Inc. 1,230 27,380 ----------- 3,011,509 ----------- MARINE (0.3%) Alexander & Baldwin, Inc. 2,890 76,990 Kirby Corp.(a) 2,240 69,126 Overseas Shipholding Group, Inc. 1,180 33,878 ----------- 179,994 ----------- MEDIA (0.8%) DreamWorks Animation SKG, Inc., Class A(a) 4,650 111,646 Harte-Hanks, Inc. 7,870 65,006 John Wiley & Sons, Inc., Class A 2,640 89,496 Lamar Advertising Co., Class A(a) 6,670 112,723 Live Nation, Inc.(a) 17,200 67,252 Scholastic Corp. 1,790 35,317 The E.W. Scripps Co., Class A 58,200 114,654 ----------- 596,094 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 31 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- METALS & MINING (1.3%) A.M. Castle & Co. 7,180 $ 69,574 AMCOL International Corp. 910 17,636 Brush Engineered Materials, Inc.(a) 5,010 84,769 Carpenter Technology Corp. 1,930 39,893 Century Aluminum Co.(a) 1,960 7,918 Cliffs Natural Resources, Inc. 7,480 172,489 Commercial Metals Co. 4,920 73,210 Gibraltar Industries, Inc. 1,420 9,514 Olympic Steel, Inc. 390 7,153 Patriot Coal Corp.(a) 2,480 15,624 Reliance Steel & Aluminum Co. 4,770 168,047 RTI International Metals, Inc.(a) 1,090 14,181 Steel Dynamics, Inc. 13,020 162,099 Worthington Industries, Inc. 5,130 76,437 ----------- 918,544 ----------- MULTI-UTILITIES (1.0%) Alliant Energy Corp. 4,340 97,042 Avista Corp. 2,430 36,572 CH Energy Group, Inc. 1,290 57,328 MDU Resources Group, Inc. 7,370 129,491 NSTAR 4,350 136,633 OGE Energy Corp. 4,870 125,208 PNM Resources, Inc. 7,850 66,882 Vectren Corp. 3,050 67,618 ----------- 716,774 ----------- MULTILINE RETAIL (0.4%) 99 Cents Only Stores(a) 2,260 24,272 Fred's, Inc. 2,330 31,828 Saks, Inc.(a) 4,950 25,789 The Andersons, Inc. 4,880 78,422 Tuesday Morning Corp.(a) 46,180 157,474 ----------- 317,785 ----------- OFFICE ELECTRONICS (0.1%) Zebra Technologies Corp., Class A(a) 2,710 57,588 ----------- OIL, GAS & CONSUMABLE FUELS (2.3%) Arch Coal, Inc. 5,890 82,283 Bill Barrett Corp.(a) 1,590 41,308 Cimarex Energy Co. 3,410 91,729 Comstock Resources, Inc.(a) 2,270 78,224 Encore Acquisition Co.(a) 4,140 120,847 Forest Oil Corp.(a) 4,140 66,240 Frontier Oil Corp. 10,020 127,354 Holly Corp. 1,700 35,632 Hornbeck Offshore Services, Inc.(a) 4,870 113,130 Mariner Energy, Inc.(a) 3,650 41,537 Newfield Exploration Co.(a) 5,290 164,942 Oil States International, Inc.(a) 4,750 89,775 Penn Virginia Corp. 3,650 51,356 Petroleum Development Corp.(a) 3,900 63,219 PetroQuest Energy, Inc.(a) 7,410 22,304 Pioneer Drilling Co.(a) 6,680 33,400 Plains Exploration & Production Co.(a) 4,390 82,839 Quicksilver Resources, Inc.(a) 11,960 97,235 St. Mary Land & Exploration Co. 6,030 107,756 Stone Energy Corp.(a) 1,640 7,069 Swift Energy Co.(a) 4,520 48,907 World Fuel Services Corp. 1,210 46,137 ----------- 1,613,223 ----------- PAPER & FOREST PRODUCTS (0.5%) Buckeye Technologies, Inc.(a) 8,190 42,178 Clearwater Paper Corp.(a) 635 9,665 Deltic Timber Corp. 850 35,819 Louisiana-Pacific Corp. 40,740 165,812 Neenah Paper, Inc. 13,030 65,280 Wausau-Mosinee Paper Corp. 2,530 22,087 ----------- 340,841 ----------- PERSONAL PRODUCTS (0.5%) Alberto-Culver Co. 3,270 72,888 Blyth, Inc. 2,402 105,880 Chattem, Inc.(a) 1,250 68,638 Helen of Troy Ltd.(a) 1,010 16,110 NBTY, Inc.(a) 2,440 63,220 ----------- 326,736 ----------- PHARMACEUTICALS (1.0%) Cubist Pharmaceuticals, Inc.(a) 6,110 101,426 Endo Pharmaceuticals Holdings, Inc.(a) 6,110 101,059 Medicis Pharmaceutical Corp., Class A 2,570 41,300 Noven Pharmaceuticals, Inc.(a) 910 9,391 Par Pharmaceutical Cos., Inc.(a) 1,730 18,563 Perrigo Co. 3,110 80,611 Salix Pharmaceuticals Ltd.(a) 3,970 43,670 Sepracor, Inc.(a) 12,960 184,162 Valeant Pharmaceuticals International(a) 3,220 53,967 ViroPharma, Inc.(a) 10,360 58,327 ----------- 692,476 ----------- RADIO BROADCASTING (0.0%) Arbitron, Inc. 1,460 30,397 ----------- REAL ESTATE - OPERATIONS AND DEVELOPMENT (0.1%) Forestar Group, Inc.(a) 1,450 18,647 Post Properties, Inc. 5,990 76,432 ----------- 95,079 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 32 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- REAL ESTATE INVESTMENT TRUST (6.1%) Acadia Realty Trust 2,897 $ 42,007 Alexandria Real Estate Equities, Inc. 2,430 88,646 AMB Property Corp. 5,150 98,313 BioMed Realty Trust, Inc. 9,990 113,986 BRE Properties, Inc. 3,650 89,680 Camden Property Trust 4,090 110,962 Cedar Shopping Centers, Inc. 14,220 51,050 Colonial Properties Trust 18,320 132,637 Corporate Office Properties Trust 1,790 54,702 Cousins Properties, Inc. 4,890 41,321 DiamondRock Hospitality Co. 19,110 124,024 Duke Realty Corp. 12,010 117,338 Eastgroup Properties, Inc. 1,930 64,867 Entertainment Properties Trust 3,520 81,347 Equity One, Inc. 3,750 55,800 Essex Property Trust, Inc. 1,150 73,014 Extra Space Storage, Inc. 7,820 55,600 Federal Realty Investment Trust 2,460 135,792 Franklin Street Properties Corp. 4,330 57,806 Highwood Properties, Inc. 4,350 104,356 Home Properties, Inc. 2,480 90,371 Hospitality Properties Trust 9,380 114,811 Inland Real Estate Corp. 4,470 39,247 Kilroy Realty Corp. 2,920 62,897 Kite Realty Group Trust 17,530 61,355 Lexington Corp. Properties Trust 17,460 67,220 Liberty Property Trust 6,420 156,263 LTC Properties, Inc. 3,170 57,092 Macerich Co. 6,580 115,347 Mack-Cali Realty Corp. 5,590 150,147 Medical Properties Trust, Inc. 4,430 23,656 Mid-America Apartment Communities, Inc. 2,090 77,309 National Retail Properties, Inc. 6,620 117,439 Nationwide Health Properties, Inc. 5,530 136,536 OMEGA Healthcare Investors, Inc. 5,420 85,202 Parkway Properties, Inc. 5,750 79,753 Pennsylvania Real Estate Investment Trust 21,750 168,562 Potlatch Corp. 1,770 52,056 PS Business Parks, Inc. 670 29,313 Rayonier, Inc. 3,250 125,515 Realty Income Corp. 5,710 127,504 Regency Centers Corp. 3,890 145,680 Senior Housing Properties Trust 7,750 127,022 SL Green Realty Corp. 6,730 118,852 Sovran Self Storage, Inc. 2,480 55,899 Tanger Factory Outlet Centers, Inc. 1,330 44,316 UDR, Inc. 7,731 77,851 Urstadt Biddle Properties, Inc., Class A 2,620 40,243 Weingarten Realty Investors 6,140 95,416 ----------- 4,336,122 ----------- REAL ESTATE MANAGEMENT - SERVICE (0.2%) Jones Lang LaSalle, Inc. 3,120 100,682 LaSalle Hotel Properties 2,000 23,920 ----------- 124,602 ----------- RESTAURANTS (0.5%) Chipotle Mexican Grill, Inc., Class A(a) 2,070 167,856 DineEquity, Inc. 5,310 170,133 ----------- 337,989 ----------- RETAIL (0.2%) Cracker Barrel Old Country Store, Inc. 3,530 115,114 HSN, Inc.(a) 4,030 27,847 ----------- 142,961 ----------- ROAD & RAIL (1.2%) Arkansas Best Corp. 1,080 24,926 Atmel Corp.(a) 14,710 56,486 Con-way, Inc. 3,990 98,872 Heartland Express, Inc. 4,273 63,881 J.B. Hunt Transport Services, Inc. 4,980 140,038 Kansas City Southern(a) 3,850 58,712 Knight Transportation, Inc. 4,810 85,041 Landstar System, Inc. 3,600 128,196 Old Dominion Freight Line, Inc.(a) 2,035 57,285 Wabtec Corp. 1,890 72,085 Werner Enterprises, Inc. 1,870 30,575 YRC Worldwide, Inc.(a) 15,060 45,632 ----------- 861,729 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.0%) Actel Corp.(a) 1,000 12,370 Advanced Energy Industries, Inc.(a) 1,310 11,043 ATMI, Inc.(a) 4,630 73,108 Brooks Automation, Inc.(a) 2,290 14,244 Cabot Microelectronics Corp.(a) 1,150 33,131 Cohu, Inc. 820 8,003 Cree, Inc.(a) 5,060 138,593 Cymer, Inc.(a) 2,290 65,059 Cypress Semiconductor Corp.(a) 12,940 102,614 Diodes, Inc.(a) 7,950 118,296 DSP Group, Inc.(a) 1,000 6,290 Exar Corp.(a) 1,430 8,795 Fairchild Semiconductor International, Inc.(a) 4,520 27,843 FEI Co.(a) 1,590 27,316 Hittite Microwave Corp.(a) 3,260 121,142 Integrated Device Technology, Inc.(a) 6,170 33,503 International Rectifier Corp.(a) 3,310 55,873 Intersil Corp., Class A 9,160 106,256 Kopin Corp.(a) 2,090 5,748 Kulicke & Soffa Industries, Inc.(a) 31,750 127,000
SEE NOTES TO FINANCIAL STATEMENTS. 33 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Lam Research Corp.(a) 8,650 $ 241,162 Micrel, Inc. 8,320 62,400 Microsemi Corp.(a) 3,280 44,018 MKS Instruments, Inc.(a) 5,770 90,300 Pericom Semiconductor Corp.(a) 12,200 108,702 RF Micro Devices, Inc.(a) 27,340 57,687 Rudolph Technologies, Inc.(a) 9,210 48,168 Semtech Corp.(a) 2,080 29,994 Silicon Laboratories, Inc.(a) 3,610 120,069 Skyworks Solutions, Inc.(a) 5,700 50,388 Standard Microsystems Corp.(a) 1,180 18,715 Supertex, Inc.(a) 590 15,175 TriQuint Semiconductor, Inc.(a) 4,290 16,431 Ultratech, Inc.(a) 800 10,816 Varian Semiconductor Equipment Associates, Inc.(a) 5,050 129,229 Veeco Instruments, Inc.(a) 1,130 8,181 ----------- 2,147,662 ----------- SOFTWARE (2.9%) ACI Worldwide, Inc.(a) 2,840 49,047 Advent Software, Inc.(a) 690 22,936 ANSYS, Inc.(a) 4,469 123,434 Blackbaud, Inc. 4,990 75,948 Cadence Design Systems, Inc.(a) 9,240 51,559 Catapult Communications Corp.(a) 400 2,956 CommVault Systems, Inc.(a) 8,240 102,588 Ebix, Inc.(a) 1,710 47,538 Epicor Software Corp.(a) 16,420 90,638 EPIQ Systems, Inc.(a) 3,675 56,852 FactSet Research Systems, Inc. 2,870 153,803 Fair Issac Corp. 2,410 40,536 Informatica Corp.(a) 3,430 54,537 Jack Henry & Associates, Inc. 3,300 59,466 JDA Software Group, Inc.(a) 1,060 14,957 Macrovision Solutions Corp.(a) 3,430 69,355 Manhattan Associates, Inc.(a) 1,020 16,952 Mentor Graphics Corp.(a) 3,330 22,378 Metavante Technologies, Inc.(a) 5,110 120,545 MICROS Systems, Inc.(a) 4,720 99,026 Parametric Technology Corp.(a) 7,230 80,614 Phoenix Technologies Ltd.(a) 800 2,280 Progress Software Corp.(a) 1,700 36,023 Quality Systems, Inc. 2,300 123,326 Radiant Systems, Inc.(a) 840 6,191 Smith Micro Software, Inc.(a) 10,900 93,740 Sonic Solutions(a) 7,890 17,358 SPSS, Inc.(a) 840 25,956 Sybase, Inc.(a) 3,270 111,049 Synopsys, Inc.(a) 7,950 173,151 Taleo Corp., Class A(a) 1,850 22,218 Tyler Technologies, Inc.(a) 2,910 48,015 Wind River Systems, Inc.(a) 2,360 17,299 ----------- 2,032,271 ----------- SPECIALTY RETAIL (7.6%) Aaron, Inc. 2,130 71,483 Advance Auto Parts, Inc. 4,740 207,375 Aeropostale, Inc.(a) 6,850 232,694 American Eagle Outfitters, Inc. 8,930 132,343 AnnTaylor Stores Corp.(a) 14,200 104,938 Big 5 Sporting Goods Corp. 22,980 189,125 Cabela's, Inc.(a) 2,670 34,203 CarMax, Inc.(a) 8,850 112,926 Cato Corp. 1,490 28,638 Charlotte Russe Holding, Inc.(a) 790 9,915 Chico's FAS, Inc.(a) 19,660 150,202 Children's Place Retail Stores, Inc.(a) 2,600 73,944 Christopher & Banks Corp. 20,270 112,701 Coldwater Creek, Inc.(a) 1,950 6,728 Collective Brands, Inc.(a) 2,920 42,398 Dick's Sporting Goods, Inc.(a) 5,800 110,200 Dollar Tree, Inc.(a) 4,230 179,098 Finish Line, Inc., Class A 3,007 25,560 Foot Locker, Inc. 18,480 219,727 Genesco, Inc.(a) 970 22,097 Group 1 Automotive, Inc. 13,790 293,727 Guess?, Inc. 5,950 154,938 Gymboree Corp.(a) 2,100 72,240 Haverty Furniture Cos., Inc. 1,810 19,639 Hibbett Sports, Inc.(a) 3,760 78,396 Hot Topic, Inc.(a) 1,500 18,360 Jo-Ann Stores, Inc.(a) 1,330 24,366 Jos. A. Bank Clothiers, Inc.(a) 2,152 87,027 Lithia Motors, Inc., Class A 52,850 154,322 Men's Wearhouse, Inc. 4,480 83,507 Midas Group, Inc.(a) 600 6,000 Movado Group, Inc. 1,050 9,629 OfficeMax, Inc. 28,250 210,462 PETsMart, Inc. 5,200 118,976 Rent-A-Center, Inc.(a) 2,940 56,595 Ross Stores, Inc. 6,510 246,989 Sonic Automotive, Inc., Class A 43,550 224,718 Stage Stores, Inc. 12,322 150,944 Stein Mart, Inc.(a) 90,020 393,387 The Dress Barn, Inc.(a) 5,660 85,692 The Pep Boys - Manny, Moe & Jack 26,350 194,990 Tractor Supply Co.(a) 2,160 87,221 Tween Brands, Inc.(a) 11,550 33,726 Urban Outfitters, Inc.(a) 7,940 154,751 Williams-Sonoma, Inc. 15,760 220,640
SEE NOTES TO FINANCIAL STATEMENTS. 34 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Zale Corp.(a) 16,480 $ 61,306 Zumiez, Inc.(a) 7,690 92,741 ----------- 5,401,584 ----------- TEXTILES APPAREL & LUXURY GOODS (3.0%) Brown Shoe Co., Inc. 12,975 83,429 Carter's, Inc.(a) 3,150 67,347 Crocs, Inc.(a) 66,600 149,850 Deckers Outdoor Corp.(a) 1,070 60,476 Fossil, Inc.(a) 3,720 74,995 Hanesbrands, Inc.(a) 4,080 67,157 Iconix Brand Group, Inc.(a) 2,380 33,939 J Crew Group, Inc.(a) 9,920 170,723 K-Swiss, Inc., Class A 5,340 53,614 Liz Claiborne, Inc. 53,850 255,249 Maidenform Brands, Inc.(a) 3,790 48,322 Oxford Industries, Inc. 20,790 202,495 Perry Ellis International, Inc.(a) 13,790 101,081 Phillips-Van Heusen Corp. 2,300 66,769 Quiksilver, Inc.(a) 43,560 71,874 Skechers U.S.A., Inc., Class A(a) 1,390 16,263 The Buckle, Inc. 1,015 37,930 The Timberland Co., Class A(a) 4,920 79,901 The Warnaco Group, Inc.(a) 3,750 108,150 True Religion Apparel, Inc.(a) 8,360 131,754 Under Armour, Inc., Class A(a) 4,040 95,102 UniFirst Corp. 660 24,611 Volcom, Inc.(a) 5,210 70,283 Wolverine World Wide, Inc. 1,990 41,452 ----------- 2,112,766 ----------- THRIFTS & MORTGAGE FINANCE (1.1%) Astoria Financial Corp. 4,600 37,996 Bank Mutual Corp. 2,860 29,372 Brookline Bancorp, Inc. 4,410 43,747 Dime Community Bancshares, Inc. 1,490 12,427 First Niagara Financial Group, Inc. 5,060 68,512 Flagstar Bancorp, Inc.(a) 136,870 198,462 Guaranty Financial Group, Inc.(a) 56,860 33,547 New York Community Bancorp, Inc. 16,440 185,937 NewAlliance Bancshares, Inc. 2,940 37,955 TrustCo Bank Corp. NY 3,990 23,940 Washington Federal, Inc. 5,200 67,496 Webster Financial Corp. 7,960 41,631 ----------- 781,022 ----------- TRADING COMPANIES & DISTRIBUTORS (0.4%) GATX Corp. 2,100 63,231 Lawson Products, Inc. 340 3,903 MSC Industrial Direct Co., Inc., Class A 2,960 120,916 United Rentals, Inc.(a) 3,300 19,998 Watsco, Inc. 1,080 46,386 ----------- 254,434 ----------- WATER UTILITIES (0.2%) American States Water Co. 740 25,552 Aqua America, Inc. 4,810 88,264 Calgon Carbon Corp.(a) 2,130 36,167 ----------- 149,983 ----------- WIRELESS TELECOMMUNICATION SERVICES (0.2%) Neutral Tandem, Inc.(a) 680 19,448 Syniverse Holdings, Inc.(a) 1,830 23,058 Telephone & Data Systems, Inc. 4,330 124,141 ----------- 166,647 ----------- TOTAL COMMON STOCKS (COST $93,915,502) 70,926,910 ----------- SHORT-TERM INVESTMENTS (0.6%) AIM Short Term Prime Money Market, 0.29%(b) 21,082 21,082 Fifth Third Institutional Government Money Market Fund, 0.32%(b) 397,774 397,774 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $418,856) 418,856 ----------- TOTAL INVESTMENTS (COST $94,334,358) 100.1% 71,345,766 LIABILITIES IN EXCESS OF OTHER ASSETS (0.1)% (78,667) ----------- NET ASSETS 100.0% $71,267,099 ===========
(a) Represents non-income producing security. (b) Variable rate security. Rate shown represents the rate as of April 30, 2009. SEE NOTES TO FINANCIAL STATEMENTS. 35 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 INTERNATIONAL ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- COMMON STOCKS (99.3%) AEROSPACE & DEFENSE (0.1%) Empresa Brasileira de Aeronautica SA, ADR 2,220 $ 36,008 ----------- AIRLINES (0.2%) Lan Airlines SA, Sponsored ADR 3,680 33,378 Ryanair Holdings PLC, Sponsored ADR(a) 3,340 91,349 ----------- 124,727 ----------- AUTO COMPONENTS (0.1%) Magna International, Inc., Class A 1,840 62,486 ----------- AUTOMOBILES (4.3%) DaimlerChrysler AG 12,490 445,893 Honda Motor Co., Ltd., Sponsored ADR 20,430 593,696 Nissan Motor Co., Ltd., Sponsored ADR 13,110 136,344 Toyota Motor Corp., Sponsored ADR 17,600 1,393,216 ----------- 2,569,149 ----------- CAPITAL MARKETS (2.6%) Credit Suisse Group, Sponsored ADR 13,220 506,062 Deutsche Bank AG, Registered 7,340 384,836 Nomura Holdings, Inc., ADR 27,030 162,450 UBS AG, ADR(a) 36,763 501,447 ----------- 1,554,795 ----------- CHEMICALS (1.3%) Agrium, Inc. 2,060 88,621 Potash Corp. of Saskatchewan, Inc. 3,730 322,608 Sociedad Quimica y Minera de Chile SA, Sponsored ADR 1,660 52,307 Syngenta AG, ADR 7,230 308,359 ----------- 771,895 ----------- COMMERCIAL BANKS (15.5%) Banco Bilbao Vizcaya Argentaria SA, Sponsored ADR 48,520 524,988 Banco Bradesco SA, Sponsored ADR 41,470 509,252 Banco de Chile, ADR 1,168 42,317 Banco Santander Central Hispano SA, Sponsored ADR 103,480 946,842 Banco Santander Chile SA, ADR 1,350 47,804 Bank of Montreal 8,090 267,051 Bank of Nova Scotia 14,030 399,294 Barclays PLC, Sponsored ADR 25,650 410,656 Canadian Imperial Bank of Commerce 5,590 250,488 HDFC Bank Ltd., ADR 1,530 113,251 HSBC Holdings PLC, Sponsored ADR 44,060 1,568,536 ICICI Bank Ltd., Sponsored ADR 5,990 123,574 Itau Unibanco Banco Multiplo SA, ADR 52,707 723,667 Lloyds TSB Group PLC, Sponsored ADR 27,800 178,198 Mitsubishi UFJ Financial Group, Inc., ADR 131,720 713,922 Mizuho Financial Group, Inc., ADR(a) 69,190 291,290 National Bank of Greece SA, ADR 24,926 101,449 Royal Bank of Canada 18,860 666,512 Royal Bank of Scotland Group PLC, Sponsored ADR(a) 10,308 126,170 Shinhan Financial Group Co., Ltd., ADR 6,120 302,022 The Toronto - Dominion Bank 11,610 457,666 Westpac Banking Corp., Sponsored ADR 7,770 535,741 ----------- 9,300,690 ----------- COMMUNICATIONS EQUIPMENT (2.5%) Alcatel-Lucent, Sponsored ADR(a) 27,190 67,975 Nokia Oyj, Sponsored ADR 48,890 691,305 Research In Motion Ltd.(a) 6,290 437,155 Telefonektiebolaget LM Ericsson, Sponsored ADR 37,730 321,837 ----------- 1,518,272 ----------- CONSTRUCTION MATERIALS (0.6%) Cemex SA de CV, Sponsored ADR(a) 22,230 166,280 CRH PLC, Sponsored ADR 8,730 224,536 ----------- 390,816 ----------- CONSUMER FINANCE (0.1%) Orix Corp., Sponsored ADR 2,390 55,854 ----------- DIVERSIFIED CONSUMER SERVICES (0.5%) Reed Elsevier NV, Sponsored ADR 5,673 124,069 Reed Elsevier PLC, Sponsored ADR 5,137 152,055 ----------- 276,124 ----------- DIVERSIFIED FINANCIAL SERVICES (0.9%) ING Groep NV, Sponsored ADR 25,040 226,862 KB Financial Group, Inc., ADR(a) 9,710 309,555 ----------- 536,417 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES (6.3%) BCE, Inc. 11,865 253,911 Brasil Telecom Participacoes SA, ADR 980 38,181 BT Group PLC, Sponsored ADR 11,290 155,012 China Unicom Ltd., ADR 18,955 219,309 France Telecom SA, Sponsored ADR 26,320 580,619 Hellenic Telecommunications Organization SA, ADR 7,710 57,285
SEE NOTES TO FINANCIAL STATEMENTS. 36 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 INTERNATIONAL ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Nippon Telegraph & Telephone Corp., ADR 22,720 $ 427,136 Portugal Telecom SGPS SA, Sponsored ADR 14,320 108,116 PT Telekomunikasi Indonesia, Sponsored ADR 3,940 113,236 Rostelecom, Sponsored ADR 1,180 64,605 Tele Norte Leste Participacoes SA, ADR 7,750 120,513 Telecom Corp. of New Zealand Ltd., Sponsored ADR 6,018 48,204 Telecom Italia S.p.A., Sponsored ADR 13,770 172,400 Telefonica SA, Sponsored ADR 20,850 1,173,647 Telefonos de Mexico SA de CV, Sponsored ADR 8,410 134,560 Telus Corp. ADR 5,340 124,155 ----------- 3,790,889 ----------- ELECTRIC UTILITIES (0.7%) Companhia Energetica de Minas Gervais, Sponsored ADR 9,041 136,067 Enersis SA, Sponsored ADR 9,860 147,802 Korea Electric Power Corp., Sponsored ADR(a) 10,340 110,431 ----------- 394,300 ----------- ELECTRICAL EQUIPMENT (0.7%) ABB Ltd., Sponsored ADR 29,330 417,073 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS (1.9%) AU Optronics Corp., Sponsored ADR 21,924 237,875 Hitachi Ltd., Sponsored ADR 4,520 157,341 Kyocera Corp., Sponsored ADR 2,820 218,776 LG Display Co., Ltd., ADR 5,810 71,405 Panasonic Corp., Sponsored ADR 26,090 380,392 TDK Corp., ADR 2,340 105,768 ----------- 1,171,557 ----------- ENERGY EQUIPMENT & SERVICES (0.1%) Tenaris SA, ADR 2,890 72,308 ----------- FOOD PRODUCTS (1.8%) Cadbury Schweppes PLC, Sponsored ADR 6,770 203,709 Unilever NV, NY Shares 25,040 495,542 Unilever PLC, Sponsored ADR 19,744 384,218 ----------- 1,083,469 ----------- HEALTH CARE EQUIPMENT & SUPPLIES (0.2%) Smith & Nephew PLC, Sponsored ADR 3,470 121,624 ----------- HEALTH CARE PROVIDERS & SERVICES (0.3%) Fresenius Medical Care AG & Co., ADR 4,420 170,214 ----------- HOTELS, RESTAURANTS & LEISURE (0.1%) InterContinental Hotels Group PLC, ADR 3,841 36,374 ----------- HOUSEHOLD DURABLES (0.4%) Koninklijke Royal Philips Electronics NV, NY Shares 13,330 239,673 Thomson, Sponsored ADR(a) 4,190 5,573 ----------- 245,246 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS (0.3%) Companhia Paranaense de Energia-Copel, Sponsored ADR 1,900 23,826 Empresa Nacional de Electricidad SA, Sponsored ADR 4,760 182,546 ----------- 206,372 ----------- INDUSTRIAL CONGLOMERATES (1.4%) Siemens AG, Sponsored ADR 11,890 795,798 Tomkins PLC, Sponsored ADR 2,970 30,116 ----------- 825,914 ----------- INSURANCE (3.9%) Aegon NV, NY Registered Shares 15,000 71,250 Allianz AG, ADR 57,040 516,782 Axa, ADR(a) 22,540 387,237 China Life Insurance Co., Ltd., ADR 12,890 682,526 Manulife Financial Corp. 20,910 357,561 Prudential PLC, ADR 15,400 176,176 Sun Life Financial, Inc. 7,710 179,026 ----------- 2,370,558 ----------- LEISURE EQUIPMENT & PRODUCTS (0.3%) FUJIFILM Holdings Corp., ADR 7,760 199,510 ----------- LIFE SCIENCES TOOLS AND SERVICES (0.0%) MDS, Inc.(a) 2,210 12,906 ----------- MACHINERY (0.1%) Kubota Corp., Sponsored ADR 2,810 84,272 ----------- MEDIA (1.1%) Grupo Televisa SA, Sponsored ADR 12,500 193,500 Pearson PLC, Sponsored ADR 12,060 124,941 Shaw Communications, Inc., Class B 5,680 87,586 Thomson Reuters Corp. 3,740 106,328 WPP PLC, Sponsored ADR 4,090 139,551 ----------- 651,906 ----------- METALS & MINING (9.7%) Agnico-Eagle Mines Ltd. 2,000 88,220 Anglo American PLC, Unsponsored ADR 32,446 349,443 AngloGold Ashanti Ltd., Sponsored ADR 4,390 135,212
SEE NOTES TO FINANCIAL STATEMENTS. 37 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 INTERNATIONAL ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- Barrick Gold Corp. 11,530 $ 335,523 BHP Billiton Ltd., Sponsored ADR 21,440 1,032,122 BHP Billiton PLC, ADR 14,070 588,689 Cameco Corp. 4,770 108,708 Companhia Siderurgica Nacional SA, Sponsored ADR 10,650 197,238 Companhia Vale do Rio Doce, ADR 19,420 320,624 Compania de Minas Buenaventura SA, ADR 3,850 81,466 Compania Vale do Rio Doce, Sponsored ADR 52,930 726,729 Gerdau SA, Sponsored ADR 17,920 127,232 Gold Fields Ltd., Sponsored ADR 10,810 112,424 Goldcorp, Inc. 9,507 261,633 Harmony Gold Mining Co., Ltd., Sponsored ADR(a) 5,540 51,633 Kinross Gold Corp. 8,770 135,496 POSCO, ADR 7,490 576,505 Rio Tinto PLC, Sponsored ADR 2,778 452,675 Teck Resources Ltd. 5,433 57,264 Yamana Gold, Inc. 8,310 65,732 ----------- 5,804,568 ----------- MULTI-UTILITIES (0.9%) National Grid PLC, Sponsored ADR 7,930 330,285 Transalta Corp., ADR 4,410 76,425 Veoilia Environnement, ADR 5,220 142,558 ----------- 549,268 ----------- OFFICE ELECTRONICS (0.8%) Canon, Inc., Sponsored ADR 15,500 468,255 ----------- OIL, GAS & CONSUMABLE FUELS (19.4%) BP PLC, Sponsored ADR 40,700 1,728,122 Canadian Natural Resources Ltd. 6,740 310,781 China Petroleum & Chemical Corp., ADR 2,480 192,448 CNOOC Ltd., ADR 4,040 449,854 Ecopetrol SA, Sponsored ADR 2,350 42,324 Enbridge, Inc. 7,010 216,259 EnCana Corp. 9,770 446,782 Enerplus Resources Fund 2,620 49,466 ENI S.p.A., Sponsored ADR 16,940 723,169 Imperial Oil Ltd. 3,570 127,163 Nexen, Inc. 6,270 119,757 Penn West Energy Trust 5,440 59,677 Petro-Canada 6,170 194,540 Petrobras Energia Paticipaciones SA, Sponsored ADR 1,270 8,179 PetroChina Co., Ltd., ADR 5,640 490,172 Petroleo Brasileiro SA, ADR 14,720 494,150 Petroleo Brasileiro SA, Sponsored ADR 41,590 1,122,098 Repsol YPF SA, Sponsored ADR 11,810 222,500 Royal Dutch Shell PLC, ADR 22,810 1,041,961 Royal Dutch Shell PLC, Class B, ADR 17,910 814,905 Santos Ltd., Sponsored ADR 1,840 88,246 Sasol Ltd., Sponsored ADR 6,280 189,091 Statoil ASA, Sponsored ADR 15,187 282,478 Suncor Energy, Inc. 11,580 293,669 Talisman Energy, Inc. 12,060 151,232 Total SA, Sponsored ADR 30,970 1,539,829 TransCanada Corp. 9,440 235,717 ----------- 11,634,569 ----------- PAPER & FOREST PRODUCTS (0.0%) Aracruz Celulose SA, Sponsored ADR 650 7,761 ----------- PHARMACEUTICALS (7.0%) AstraZeneca PLC, Sponsored ADR 20,500 716,885 Biovail Corp. 5,010 55,060 Elan Corp. PLC, Sponsored ADR(a) 6,550 38,710 GlaxoSmithKline PLC, ADR 35,470 1,091,057 Novartis AG, ADR 36,270 1,374,996 NovoNordisk A/S, Sponsored ADR 7,880 374,379 Teva Pharmaceutical Industries Ltd., Sponsored ADR 13,000 570,570 ----------- 4,221,657 ----------- REAL ESTATE MANAGEMENT AND DEVELOPMENT (0.2%) Brookfield Asset Management, Inc., Class A 6,512 101,131 ----------- ROAD & RAIL (0.6%) Canadian National Railway Co. 6,780 274,048 Canadian Pacific Railway Ltd. 2,420 86,781 ----------- 360,829 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (3.0%) ADVANTEST Corp., ADR 2,695 42,635 ARM Holdings PLC, Sponsored ADR 6,020 31,966 ASML Holding NV, NY Registered Shares 6,735 142,445 Infineon Technologies AG, ADR(a) 8,920 22,835 Siliconware Precision Industries Co., Ltd., Sponsored ADR 4,570 34,138 STMicroelectronics NV, NY Shares 8,780 57,685 Taiwan Semiconductor Manufacturing Co., Ltd., Sponsored ADR 131,599 1,391,001 United Microelectronics Corp., Sponsored ADR 32,659 99,610 ----------- 1,822,315 -----------
SEE NOTES TO FINANCIAL STATEMENTS. 38 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 INTERNATIONAL ENHANCED INDEX FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- SOFTWARE (1.4%) Infosys Technologies Ltd., Sponsored ADR 8,870 $ 273,284 SAP AG, ADR 12,210 465,079 Thomson Reuters PLC, ADR 618 95,574 ----------- 833,937 ----------- TEXTILES APPAREL & LUXURY GOODS (0.1%) Gildan Activewear, Inc.(a) 1,900 21,755 Luxottica Group S.p.A., Sponsored ADR 2,950 54,015 ----------- 75,770 ----------- TRADING COMPANY & DISTRIBUTORS (0.4%) Mitsui & Co., Ltd., Sponsored ADR 1,087 231,488 ----------- WIRELESS TELECOMMUNICATION SERVICES (7.5%) America Movil SA, ADR, Series L 24,820 815,337 China Mobile Ltd., Sponsored ADR 25,330 1,093,243 China Telecom Corp. Ltd., ADR 2,770 136,755 Chunghwa Telecom Co., Ltd., ADR 14,831 280,306 Mobile TeleSystems, Sponsored ADR 2,720 90,141 NTT DoCoMo, Inc., Sponsored ADR 21,320 296,987 Philippine Long Distance Telephone Co., Sponsored ADR 2,320 106,418 Rogers Communications, Inc., Class B 7,500 184,350 SK Telecom Co., Ltd., ADR 10,700 167,669 Turkcell Iletisim Hizmetleri AS, ADR 3,930 49,911 Vodafone Group PLC, Sponsored ADR 68,443 1,255,929 ----------- 4,477,046 ----------- TOTAL COMMON STOCKS (COST $94,501,351) 59,640,319 ----------- SHORT-TERM INVESTMENT (0.3%) Fifth Third Institutional Government Money Market Fund, 0.32%(b) 203,237 203,237 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $203,237) 203,237 ----------- TOTAL INVESTMENTS (COST $94,704,588) 99.6% 59,843,556 OTHER ASSETS IN EXCESS OF LIABILITIES 0.4% 234,124 ----------- NET ASSETS 100.0% $60,077,680 ===========
(a) Represents non-income producing security. (b) Variable rate security. Rate shown represents the rate as of April 30, 2009. ADR - American Depositary Receipt PLC - Public Limited Co. SEE NOTES TO FINANCIAL STATEMENTS. 39 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE --------- ----- CORPORATE BONDS (24.8%) AEROSPACE & DEFENSE (0.8%) United Technologies Corp., 6.35%, 3/1/11 $1,000,000 $ 1,068,235 ------------ ASSET BACKED MORTGAGES (0.4%) Citigroup Mortgage Loan Trust, Inc., 5.55%, 8/25/35 1,000,000 386,023 Countrywide Asset-Backed Certificates, 6.05%, 5/25/36 500,000 165,920 ------------ 551,943 ------------ BROKERAGE SERVICES (0.4%) Jeffries Group, Inc., 7.75%, 3/15/12 715,000 536,493 ------------ CAPITAL MARKETS (0.9%) Bear Stearns Co., Inc., 4.50%, 10/28/10 500,000 504,611 UBS AG Stamford Connecticut, 5.88%, 7/15/16 1,000,000 753,334 ------------ 1,257,945 ------------ COMMERCIAL BANKS (4.0%) Bank of America Corp., 4.88%, 9/15/12 500,000 453,265 Bank of America Corp., 7.23%, 8/15/12 500,000 439,027 Bank One Capital III, 8.75%, 9/1/30 500,000 406,228 Bank One Corp., 5.25%, 1/30/13 500,000 475,876 Chase Manhattan Corp., 7.00%, 11/15/09 1,006,000 1,025,237 Hudson United Bank, 7.00%, 5/15/12 681,000 712,705 National City Corp. -- PNC, 4.90%, 1/15/15 1,000,000 897,180 Southtrust Bank NA, 7.69%, 5/15/25 1,000,000 784,102 Wells Fargo & Co., 4.95%, 10/16/13 500,000 480,051 ------------ 5,673,671 ------------ COMPUTERS & PERIPHERALS (1.4%) Dell, Inc., 4.70%, 4/15/13 900,000 914,552 Hewlett-Packard Co., 4.50%, 3/1/13 1,000,000 1,036,203 ------------ 1,950,755 ------------ CONSULTING SERVICES (0.6%) Science Applications International Corp., 7.13%, 7/1/32 1,000,000 799,720 ------------ CONSUMER STAPLES (3.5%) Archer-Daniels-Midland Co., 7.13%, 3/1/13 500,000 551,497 Avon Products, Inc., 5.75%, 3/1/18 1,000,000 961,798 Coca-Cola Co., 5.35%, 11/15/17 1,350,000 1,423,660 PepsiCo, Inc., 4.65%, 2/15/13 935,000 995,083 PepsiCo, Inc., 5.00%, 6/1/18 500,000 514,243 Safeway, Inc., 4.95%, 8/16/10 500,000 512,267 ------------ 4,958,548 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 40 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE --------- ----- DIVERSIFIED FINANCIAL SERVICES (0.2%) Citigroup, Inc., 4.88%, 5/7/15 $ 500,000 $ 323,728 ------------ ELECTRONIC EQUIPMENT & INSTRUMENTS (0.3%) Eaton Corp., 4.90%, 5/15/13 500,000 494,782 ------------ FINANCIAL SERVICES (3.0%) Boeing Capital Corp., 5.80%, 1/15/13 500,000 527,538 Boeing Capital Corp., 6.50%, 2/15/12 500,000 538,937 CME Group, Inc., 5.40%, 8/1/13 1,000,000 1,035,073 HSBC Finance Corp., 5.25%, 1/14/11 1,000,000 970,575 John Deere Capital Corp., Series D, 4.40%, 7/15/09 1,000,000 1,004,637 SLM Corp., Series A, 5.00%, 6/15/18, Callable 6/15/09 @ 100 500,000 222,761 ------------ 4,299,521 ------------ FORESTRY (0.1%) Louisiana Pacific Corp., 8.88%, 8/15/10 125,000 116,264 ------------ INSURANCE (1.5%) Allstate Corp., 5.00%, 8/15/14 500,000 471,428 GE Global Insurance Holding Corp., 6.45%, 3/1/19 1,000,000 853,068 Prudential Financial, Inc., Series C, 4.75%, 6/13/15 1,000,000 754,018 ------------ 2,078,514 ------------ MORTGAGE BACKED SECURITIES -- FINANCIAL SERVICES (1.8%) Opteum Mortgate Acceptance Corp., 5.85%, 12/25/35 1,000,000 475,590 Wells Fargo Mortgage Backed Securities, 4.45%, 10/25/33(a) 1,203,215 1,035,829 Wells Fargo Mortgage Backed Securities, 5.50%, 2/25/37 1,719,000 961,187 ------------ 2,472,606 ------------ MORTGAGE BACKED SECURITIES -- RELIGIOUS ORGANIZATIONS (1.9%)(b) Abyssinia Missionary Baptist Church Ministries, Inc., 6.70%, 9/15/11, Callable 6/15/2009 @ 100 83,000 84,022 Abyssinia Missionary Baptist Church Ministries, Inc., 6.80%, 3/15/12, Callable 6/15/2009 @ 100 57,000 57,445 Abyssinia Missionary Baptist Church Ministries, Inc., 6.90%, 9/15/12, Callable 6/15/2009 @ 100 89,000 89,604 Abyssinia Missionary Baptist Church Ministries, Inc., 7.30%, 9/15/14, Callable 6/15/2009 @ 100 73,000 73,266 Abyssinia Missionary Baptist Church Ministries, Inc., 7.40%, 3/15/15, Callable 6/15/2009 @ 100 106,000 106,453 Abyssinia Missionary Baptist Church Ministries, Inc., 7.50%, 9/15/15, Callable 6/15/2009 @ 100 63,000 63,307 Abyssinia Missionary Baptist Church Ministries, Inc., 7.50%, 3/15/16, Callable 6/15/2009 @ 100 90,000 90,494 Abyssinia Missionary Baptist Church Ministries, Inc., 7.50%, 9/15/16, Callable 6/15/2009 @ 100 63,000 63,382 Bethel Baptist Institutional Church, Inc., 7.60%, 1/21/15, Callable 7/21/2009 @ 100 152,000 152,605 Bethel Baptist Institutional Church, Inc., 7.70%, 7/21/15, Callable 7/21/2009 @ 100 101,000 100,968 Bethel Baptist Institutional Church, Inc., 7.80%, 7/21/16, Callable 7/21/2009 @ 100 203,000 204,163 Bethel Baptist Institutional Church, Inc., 7.80%, 1/21/17, Callable 7/21/2009 @ 100 212,000 213,333 Bethel Baptist Institutional Church, Inc., 7.80%, 7/21/17, Callable 7/21/2009 @ 100 46,000 46,037 Bethel Baptist Institutional Church, Inc., 7.80%, 7/21/20, Callable 7/21/2009 @ 100 86,000 85,554 Metropolitan Baptist Church, 7.90%, 7/12/13, Callable 7/12/2009 @ 100 29,000 28,648 Metropolitan Baptist Church, 8.00%, 1/12/14, Callable 7/12/2009 @ 100 71,000 70,360
SEE NOTES TO FINANCIAL STATEMENTS. 41 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ---------- ----- Metropolitan Baptist Church, 8.10%, 7/12/14, Callable 7/12/2009 @ 100 $ 74,000 $ 73,616 Metropolitan Baptist Church, 8.40%, 7/12/16, Callable 7/12/2009 @ 100 87,000 87,475 Metropolitan Baptist Church, 8.40%, 1/12/17, Callable 7/12/2009 @ 100 90,000 90,540 Metropolitan Baptist Church, 8.40%, 7/12/18, Callable 7/12/2009 @ 100 23,000 22,880 Metropolitan Baptist Church, 8.40%, 7/12/20, Callable 7/12/2009 @ 100 121,000 120,370 New Life Anointed Ministries International, Inc., 7.40%, 12/21/11, Callable 6/21/2009 @ 100 44,000 42,080 New Life Anointed Ministries International, Inc., 7.80%, 12/21/17, Callable 6/21/2009 @ 100 111,000 105,560 New Life Anointed Ministries International, Inc., 7.80%, 6/21/18, Callable 6/21/2009 @ 100 147,000 138,931 New Life Anointed Ministries International, Inc., 7.80%, 12/21/18, Callable 6/21/2009 @ 100 152,000 143,656 New Life Anointed Ministries International, Inc., 7.80%, 6/21/19, Callable 6/21/2009 @ 100 158,000 149,327 New Life Anointed Ministries International, Inc., 7.80%, 12/21/19, Callable 6/21/2009 @ 100 165,000 155,942 ------------ 2,660,018 ------------ OIL & GAS -- INTEGRATED (0.4%) Phillips Petroleum Co., 6.65%, 7/15/18 500,000 529,172 ------------ PHARMACEUTICALS (0.4%) Eli Lilly & Co., 6.00%, 3/15/12 500,000 544,291 ------------ RETAIL (0.3%) AutoZone, Inc., 4.75%, 11/15/10 500,000 498,754 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (0.3%) Applied Materials, Inc., 7.13%, 10/15/17 500,000 460,087 ------------ TRANSPORTATION (0.3%) Union Pacific Corp., 3.63%, 6/1/10 500,000 497,438 ------------ UTILITIES-ELECTRIC & GAS (0.4%) Duke Energy Corp., 6.25%, 1/15/12 500,000 535,151 ------------ UTILITIES-TELECOMMUNICATIONS (1.9%) AT&T, Inc., 5.88%, 8/15/12 2,000,000 2,124,034 Verizon New England, Inc., 4.75%, 10/1/13 500,000 490,430 ------------ 2,614,464 ------------ TOTAL CORPORATE BONDS (COST $39,791,781) 34,922,100 ------------ U.S. GOVERNMENT AGENCIES (22.5%) FEDERAL FARM CREDIT BANK (1.7%) 4.70%, 1/17/18, Callable 1/17/2013 @ 100 2,000,000 2,026,486 5.05%, 8/1/18 300,000 305,004 ------------ 2,331,490 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 42 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ---------- ----- FEDERAL HOME LOAN BANK (7.9%) 2.25%, 4/13/12 $2,000,000 $ 2,026,902 4.75%, 12/12/14 4,445,000 4,799,307 4.75%, 6/8/18 2,000,000 2,139,448 4.88%, 3/11/11 2,000,000 2,132,264 ------------ 11,097,921 ------------ FEDERAL HOME LOAN MORTGAGE CORP. (5.4%) 2.75%, 4/29/14, Callable 4/29/2011 @ 100 2,000,000 1,992,714 4.63%, 10/25/12 2,000,000 2,185,950 5.00%, 10/18/10 2,000,000 2,107,976 5.50%, 3/1/23 1,268,812 1,319,815 ------------ 7,606,455 ------------ FEDERAL NATIONAL MORTGAGE ASSOC. (7.5%) 1.28%, 6/10/20(a) 2,000,000 1,820,000 4.00%, 1/28/13 2,400,000 2,550,818 4.25%, 2/25/13 1,000,000 1,070,877 4.50%, 5/28/15, Callable 5/28/2009 @ 100 2,000,000 2,005,308 5.24%, 8/7/18, Callable 8/7/2013 @ 100 2,020,000 2,164,662 5.50%, 5/3/17, Callable 5/3/2010 @ 100 1,000,000 1,039,120 ------------ 10,650,785 ------------ TOTAL U.S. GOVERNMENT AGENCIES (COST $31,561,494) 31,686,651 ------------ U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS (40.8%) FEDERAL HOME LOAN MORTGAGE CORP. (13.4%) 4.46%, 1/1/35(a) 783,897 792,446 4.60%, 3/1/35(a) 1,704,144 1,741,132 5.00%, 7/15/19 1,294,462 1,343,813 5.00%, 5/15/25 252,080 256,363 5.00%, 8/15/35 1,209,242 1,207,380 5.00%, 11/1/37 2,469,536 2,475,324 5.50%, 4/1/30 1,167,041 1,210,189 5.50%, 3/1/38 3,258,871 3,374,170 5.75%, 8/15/31 381,220 393,985 6.00%, 9/1/34 1,244,295 1,307,019 6.00%, 8/1/36 304,305 319,243 6.00%, 6/1/37 89,826 93,863 6.00%, 12/1/37 972,338 1,016,036 6.00%, 3/1/38 1,122,531 1,172,916 6.02%, 10/1/37(a) 1,848,871 1,931,141 ------------ 18,635,020 ------------ FEDERAL NATIONAL MORTGAGE ASSOC. (23.7%) 0.86%, 11/25/36(a) 2,612,827 2,566,188 3.75%, 7/1/35(a) 3,016,333 3,025,234
SEE NOTES TO FINANCIAL STATEMENTS. 43 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ---------- ----- 3.96%, 12/1/40(a) $1,692,001 $ 1,697,606 4.73%, 7/1/34(a) 126,147 127,431 4.73%, 3/1/35(a) 298,000 301,557 4.74%, 7/1/35(a) 2,372,155 2,400,532 5.00%, 10/1/24 689,462 712,368 5.00%, 1/1/30 1,597,237 1,644,311 5.00%, 1/1/35 1,732,329 1,783,384 5.50%, 12/1/34 1,267,173 1,314,023 5.50%, 2/1/35 57,728 60,015 5.50%, 5/1/36 2,298,286 2,383,258 5.50%, 8/1/36 819,215 849,503 5.50%, 9/1/36 685,534 699,898 5.50%, 4/25/37 749,731 742,682 5.50%, 9/1/37 3,021,289 3,132,993 5.50%, 12/1/36 2,883,095 2,991,041 5.65%, 5/1/36(a) 1,938,358 2,015,899 6.00%, 9/1/36 1,633,280 1,708,978 6.00%, 5/1/37 730,779 764,648 6.03%, 8/1/36(a) 1,371,554 1,432,231 6.50%, 2/1/36 1,197,741 1,272,432 ------------ 33,626,212 ------------ GOVERNMENT NATIONAL MORTGAGE ASSOC. (3.7%) 5.00%, 4/15/38 985,222 1,021,414 5.50%, 4/20/37 500,000 498,592 5.50%, 4/15/38 1,851,446 1,925,464 6.00%, 1/15/26 1,915 2,018 6.00%, 12/15/28 2,036 2,143 6.00%, 3/15/29 2,093 2,205 6.00%, 11/15/31 2,389 2,516 6.00%, 6/15/37 801,337 837,630 6.00%, 10/15/37 771,720 805,864 ------------ 5,097,846 ------------ TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS (COST $55,998,110) 57,359,078 ------------ U.S. TREASURY OBLIGATIONS (7.0%) U.S. TREASURY NOTES (7.0%) 3.50%, 2/15/18 2,000,000 2,074,218 4.25%, 11/15/13 4,000,000 4,415,312 4.50%, 3/31/12 3,000,000 3,270,468 ------------ 9,759,998 ------------ TOTAL U.S. TREASURY OBLIGATIONS (COST $9,195,486) 9,759,998 ------------
SEE NOTES TO FINANCIAL STATEMENTS. 44 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 SELECT BOND FUND - --------------------------------------------------------------------------------
SHARES OR PRINCIPAL AMOUNT VALUE ---------- ----- SHORT-TERM INVESTMENT (4.0%) Fifth Third Institutional Government Money Market Fund, 0.32%(a) $5,646,644 $ 5,646,644 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $5,646,644) 5,646,644 ------------ TOTAL INVESTMENTS (COST $142,193,515) 99.1% 139,374,471 OTHER ASSETS IN EXCESS OF LIABILITIES 0.9% 1,303,320 ------------ NET ASSETS 100.0% $140,677,791 ============
(a) Variable rate security. Rate shown represents the rate as of April 30, 2009. (b) The Issuer has the option to redeem the Bonds, on any quarterly anniversary of the issue date, in whole or in part, without premium or penalty. The Issuer does not have the right to extend the terms of the offering. The Bonds are generally considered to be illiquid due to the limited, if any, secondary market for these bonds. SEE NOTES TO FINANCIAL STATEMENTS. 45 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 GLOBAL EQUITY INCOME FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- COMMON STOCKS (99.1%) AEROSPACE & DEFENSE (2.6%) Kaman Corp., Class A 39,220 $ 663,210 Lockheed Martin Corp. 11,240 882,677 ----------- 1,545,887 ----------- BEVERAGES (1.5%) Coca-Cola Co. 20,580 885,969 ----------- CHEMICALS (2.2%) E.I. Du Pont De Nemours & Co. 48,590 1,355,661 ----------- COMMERCIAL BANKS (7.0%) Banco Bilbao Vizcaya Argentaria SA, Sponsored ADR 64,189 694,520 Banco de Chile, ADR 16,850 610,476 Banco Santander Central Hispano SA, Sponsored ADR 115,400 1,055,910 The Toronto - Dominion Bank 31,810 1,253,950 Westpac Banking Corp., Sponsored ADR 9,370 646,061 ----------- 4,260,917 ----------- COMMERCIAL SERVICES & SUPPLIES (4.5%) Healthcare Services Group, Inc. 50,370 900,616 Pitney Bowes, Inc. 57,930 1,421,602 Waste Management, Inc. 14,940 398,450 ----------- 2,720,668 ----------- COMPUTERS & PERIPHERALS (3.6%) Diebold, Inc. 28,030 740,833 International Business Machines Corp. 14,040 1,449,068 ----------- 2,189,901 ----------- CONSTRUCTION MATERIALS (0.9%) CRH PLC, Sponsored ADR 20,560 528,803 ----------- CONTAINERS & PACKAGING (1.5%) Greif, Inc., Class A 20,570 931,204 ----------- DISTRIBUTORS (2.8%) Genuine Parts Co. 50,470 1,713,961 ----------- DIVERSIFIED TELECOMMUNICATION SERVICES (3.3%) BT Group PLC, Sponsored ADR 18,560 254,829 France Telecom SA, Sponsored ADR 37,360 824,162 Portugal Telecom SGPS SA, Sponsored ADR 124,640 941,032 ----------- 2,020,023 ----------- ELECTRIC UTILITIES (1.9%) Pinnacle West Capital Corp. 42,980 1,176,792 ----------- ELECTRICAL EQUIPMENT (2.3%) Emerson Electric Co. 9,370 318,955 Rockwell Automation, Inc. 33,650 1,063,003 ----------- 1,381,958 ----------- FOOD PRODUCTS (4.9%) H.J. Heinz Co. 54,210 1,865,908 Unilever NV, NY Shares 56,000 1,108,240 ----------- 2,974,148 ----------- GAS UTILITIES (1.9%) AGL Resources, Inc. 37,350 1,164,200 ----------- HEALTH CARE EQUIPMENT & SUPPLIES (0.8%) Meridian Bioscience, Inc. 27,990 486,466 ----------- HOTELS, RESTAURANTS & LEISURE (2.8%) McDonald's Corp. 31,790 1,694,089 ----------- HOUSEHOLD PRODUCTS (1.2%) Kimberly-Clark Corp. 14,980 736,117 ----------- INDUSTRIAL CONGLOMERATES (2.8%) 3M Co. 5,640 324,864 General Electric Co. 110,080 1,392,512 ----------- 1,717,376 ----------- IT SERVICES (1.9%) Paychex, Inc. 42,980 1,160,890 ----------- LEISURE EQUIPMENT & PRODUCTS (4.1%) Mattel, Inc. 168,080 2,514,477 ----------- MEDIA (2.3%) Pearson PLC, Sponsored ADR 136,110 1,410,100 ----------- METALS & MINING (2.0%) Rio Tinto PLC, Sponsored ADR 7,480 1,218,866 ----------- MULTI-UTILITIES (0.7%) SCANA Corp. 13,080 395,278 ----------- OIL, GAS & CONSUMABLE FUELS (17.0%) BP PLC, Sponsored ADR 24,310 1,032,203 CNOOC Ltd., ADR 13,090 1,457,571 Enbridge, Inc. 26,160 807,036 Eni S.p.A., Sponsored ADR 52,340 2,234,395 Santos Ltd., Sponsored ADR 44,850 2,151,006 Total SA, Sponsored ADR 46,740 2,323,913
SEE NOTES TO FINANCIAL STATEMENTS. 46 STEWARD FUNDS SCHEDULE OF PORTFOLIO INVESTMENTS - APRIL 30, 2009 GLOBAL EQUITY INCOME FUND - --------------------------------------------------------------------------------
SHARES VALUE ------ ----- TransCanada Corp. 11,120 $ 277,666 ----------- 10,283,790 ----------- PHARMACEUTICALS (10.3%) AstraZeneca PLC, Sponsored ADR 28,030 980,209 Eli Lilly & Co. 44,850 1,476,462 GlaxoSmithKline PLC, ADR 23,350 718,246 Johnson & Johnson 35,520 1,859,827 Novartis AG, ADR 31,770 1,204,401 ----------- 6,239,145 ----------- REAL ESTATE INVESTMENT TRUST (4.3%) BioMed Realty Trust, Inc. 74,590 851,072 Entertainment Properties Trust 41,130 950,514 Senior Housing Properties Trust 48,550 795,735 ----------- 2,597,321 ----------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (5.4%) Analog Devices, Inc. 39,200 834,176 Linear Technology Corp. 65,390 1,424,194 Microchip Technology, Inc. 42,960 988,080 ----------- 3,246,450 ----------- TEXTILES APPAREL & LUXURY GOODS (1.3%) VF Corp. 13,100 776,437 ----------- TRADING COMPANY & DISTRIBUTORS (1.3%) Mitsui & Co., Ltd., Sponsored ADR 3,750 798,600 ----------- TOTAL COMMON STOCKS (COST $78,893,290) 60,125,494 ----------- SHORT-TERM INVESTMENT (0.5%) Fifth Third Institutional Government Money Market Fund, 0.32%(a) 317,445 317,445 ----------- TOTAL SHORT-TERM INVESTMENTS (COST $317,445) 317,445 ----------- TOTAL INVESTMENTS (COST $79,210,735) 99.6% 60,442,939 OTHER ASSETS IN EXCESS OF LIABILITIES 0.4% 235,797 ----------- NET ASSETS 100.0% $60,678,736 ===========
(a) Variable rate security. Rate shown represents the rate as of April 30, 2009. ADR - American Depositary Receipt PLC - Public Limited Co. SEE NOTES TO FINANCIAL STATEMENTS. 47 STEWARD FUNDS STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 2009 - --------------------------------------------------------------------------------
SMALL GLOBAL LARGE CAP MID-CAP INTERNATIONAL EQUITY ENHANCED ENHANCED ENHANCED SELECT BOND INCOME INDEX FUND INDEX FUND INDEX FUND FUND FUND ------------ ------------ -------------- ----------- ------------ ASSETS: Investments, at fair value (cost $144,763,228, $94,334,358, $94,704,588, $142,193,515 and $79,210,735, respectively) $104,175,731 $ 71,345,766 $ 59,843,556 $139,374,471 $ 60,442,939 Cash -- -- 26,433 -- 430 Interest and dividends receivable 147,763 45,814 252,488 1,216,138 236,153 Receivable for capital shares issued 11,257 6,572 24,511 16,857 37,496 Receivable for investments sold -- -- -- 179,891 -- Prepaid expenses and other assets 5,623 8,374 9,730 5,235 18,573 ------------ ------------ ------------ ------------ ------------ Total Assets 104,340,374 71,406,526 60,156,718 140,792,592 6 0,735,591 ------------ ------------ ------------ ------------ ------------ LIABILITIES: Payable for capital shares redeemed 32,073 68,472 11,686 10,286 13,315 Investment advisory fees 12,258 8,069 14,294 28,921 14,414 Consulting fees 7,049 4,645 4,108 9,943 4,143 Administration fees 6,842 4,424 4,031 9,144 3,782 Administrative services fee 2,703 1,316 2,084 2,005 2,149 Fund accounting fees 3,039 1,533 2,002 3,061 1,183 Transfer agent fees 7,965 13,775 5,007 6,802 3,571 Custodian fees 890 5,372 2,891 2,900 1,013 Directors fees 2,676 1,381 1,444 1,445 1,709 Distribution fees 2,334 5,511 1,529 3,067 1,428 Other 38,763 24,929 29,962 37,227 10,148 ------------ ------------ ------------ ------------ ------------ Total Liabilities 116,592 139,427 79,038 114,801 56,855 ------------ ------------ ------------ ------------ ------------ NET ASSETS $104,223,782 $ 71,267,099 $ 60,077,680 $140,677,791 $ 60,678,736 ============ ============ ============ ============ ============ COMPOSITION OF NET ASSETS: Capital (par value and paid-in surplus) $158,759,318 $104,099,723 $ 96,373,849 $144,620,001 $ 92,464,827 Undistributed net investment income 108,442 37,129 200,153 212,901 262,122 Accumulated net realized loss on investment transactions (14,056,481) (9,881,161) (1,635,290) (1,336,067) (13,280,417) Unrealized depreciation on investments (40,587,497) (22,988,592) (34,861,032) (2,819,044) (18,767,796) ------------ ------------ ------------ ------------ ------------ NET ASSETS $104,223,782 $ 71,267,099 $ 60,077,680 $140,677,791 $ 60,678,736 ============ ============ ============ ============ ============ INDIVIDUAL CLASS Net Assets $ 11,850,756 $ 29,141,611 $ 7,717,070 $ 14,616,083 $ 7,236,202 Shares authorized 7,500,000 12,499,900 7,500,000 7,500,000 7,500,000 Shares issued and outstanding ($0.001 par value) 715,170 3,958,070 473,667 603,306 452,645 Net asset value, offering and redemption price per share $ 16.57 $ 7.36 $ 16.29 $ 24.23 $ 15.99 INSTITUTIONAL CLASS Net Assets $ 92,373,026 $ 42,125,488 $ 52,360,610 $126,061,708 $ 53,442,534 Shares authorized 37,500,000 12,500,000 37,500,000 37,500,000 37,500,000 Shares issued and outstanding ($0.001 par value) 5,604,881 5,689,525 3,207,471 5,227,829 3,340,403 Net asset value, offering and redemption price per share $ 16.48 $ 7.40 $ 16.32 $ 24.11 $ 16.00
SEE NOTES TO FINANCIAL STATEMENTS. 48 STEWARD FUNDS STATEMENTS OF OPERATIONS - FOR THE YEAR ENDED APRIL 30, 2009 - --------------------------------------------------------------------------------
SMALL GLOBAL LARGE CAP MID-CAP INTERNATIONAL EQUITY ENHANCED ENHANCED ENHANCED SELECT BOND INCOME INDEX FUND INDEX FUND INDEX FUND FUND FUND ------------ ------------ -------------- ----------- ------------- INVESTMENT INCOME: Interest $ -- $ -- $ -- $ 6,837,203 $ -- Dividend (net of foreign withholding $0, $304, $46,809, $0, $11,815) 2,833,044 1,377,328 2,367,055 87,236 3,384,886 ------------ ------------ ------------ ----------- ------------ Total investment income 2,833,044 1,377,328 2,367,055 6,924,439 3,384,886 ------------ ------------ ------------ ----------- ------------ EXPENSES: Investment advisory fees 175,850 115,123 203,575 365,699 206,291 Consulting fees 89,647 61,385 53,395 114,023 55,213 Administration fees 85,195 55,720 49,357 106,709 49,979 Distribution fees - Individual Class 33,114 82,578 21,204 42,019 21,186 Administrative services fees - Individual Class 12,761 4,929 6,803 10,829 10,079 Accounting fees 103,749 97,723 59,452 124,652 54,878 Custodian fees 43,044 13,371 17,019 20,784 11,589 Registration and filing fees 28,832 48,758 40,744 29,095 23,734 Transfer agent fees 48,364 88,839 29,282 48,219 21,649 Directors' retainer and meetings 24,837 13,769 14,997 25,541 14,353 Offering costs -- -- -- -- 10,712 Miscellaneous fees 81,073 57,958 46,556 92,650 49,133 ------------ ------------ ------------ ----------- ------------ Total Expenses 726,466 640,153 542,384 980,220 528,796 ------------ ------------ ------------ ----------- ------------ Net investment income 2,106,578 737,175 1,824,671 5,944,219 2,856,090 ------------ ------------ ------------ ----------- ------------ REALIZED AND UNREALIZED GAIN/(LOSS) FROM INVESTMENTS: Net realized gain/(loss) from investment transactions (12,984,994) (9,587,120) (1,621,746) 529,763 (13,282,641) Net change in unrealized depreciation on investments (43,473,346) (20,034,845) (40,352,490) (2,038,956) (19,091,189) ------------ ------------ ------------ ----------- ------------ Net realized and unrealized loss on investments (56,458,340) (29,621,965) (41,974,236) (1,509,193) (32,373,830) ------------ ------------ ------------ ----------- ------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(54,351,762) $(28,884,790) $(40,149,565) $ 4,435,026 $(29,517,740) ============ ============ ============ =========== ============
SEE NOTES TO FINANCIAL STATEMENTS. 49 STEWARD FUNDS STATEMENTS OF CHANGES IN NET ASSETS LARGE CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED YEAR ENDED APRIL 30, 2009 APRIL 30, 2008 -------------- -------------- CHANGE IN NET ASSETS FROM OPERATIONS: Net investment income $ 2,106,578 $ 943,263 Net realized gain/(loss) on investments (12,984,994) 10,153,319 Net change in unrealized depreciation on investments (43,473,346) (16,047,491) ------------ ------------ Change in net assets resulting from operations (54,351,762) (4,950,909) ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Individual Class (193,322) (16,177) Institutional Class (1,846,767) (956,517) Net realized gains: Individual Class (833,389) (145,533) Institutional Class (6,444,829) (5,420,007) ------------ ------------ Total distributions (9,318,307) (6,538,234) ------------ ------------ CAPITAL TRANSACTIONS: INDIVIDUAL CLASS Proceeds from shares issued 6,273,111 25,080,946 Dividends reinvested 1,026,417 161,386 Cost of shares redeemed (5,268,485) (10,473,939) ------------ ------------ Net increase 2,031,043 14,768,393 ------------ ------------ INSTITUTIONAL CLASS Proceeds from shares issued 14,282,481 106,052,819 Dividends reinvested 8,193,307 6,213,494 Cost of shares redeemed (11,009,136) (51,675,296) ------------ ------------ Net increase 11,466,652 60,591,017 ------------ ------------ Net increase in net assets from fund share transactions: 13,497,695 75,359,410 ------------ ------------ Total increase/(decrease) in net assets (50,172,374) 63,870,267 NET ASSETS: Beginning of period $154,396,156 $ 90,525,889 ------------ ------------ End of period $104,223,782 $154,396,156 ============ ============ Accumulated undistributed net investment income $ 108,442 $ 43,627 ============ ============ SHARE TRANSACTIONS: INDIVIDUAL CLASS Issued 322,335 905,823 Reinvested 63,057 5,291 Redeemed (273,708) (374,839) ------------ ------------ Change in Individual Class 111,684 536,275 ------------ ------------ INSTITUTIONAL CLASS Issued 739,362 3,768,391 Reinvested 502,312 204,946 Redeemed (554,429) (1,808,498) ------------ ------------ Change in Institutional Class 687,245 2,164,839 ------------ ------------
SEE NOTES TO FINANCIAL STATEMENTS. 50 STEWARD FUNDS STATEMENTS OF CHANGES IN NET ASSETS SMALL MID-CAP ENHANCED INDEX FUND - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED YEAR ENDED APRIL 30, 2009 APRIL 30, 2008 -------------- -------------- CHANGE IN NET ASSETS FROM OPERATIONS: Net investment income/(loss) $ 737,175 $ (53,346) Net realized gain/(loss) on investments (9,587,120) 4,895,269 Net change in unrealized depreciation on investments (20,034,845) (8,732,349) ------------ ----------- Change in net assets resulting from operations (28,884,790) (3,890,426) ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Individual Class (253,397) (31,145) Institutional Class (442,661) (465) Net realized gains: Individual Class (665,561) (4,518,921) Institutional Class (876,066) (21,781) ------------ ----------- Total distributions (2,237,685) (4,572,312) ------------ ----------- CAPITAL TRANSACTIONS: INDIVIDUAL CLASS Proceeds from shares issued 2,950,193 8,005,664 Dividends reinvested 839,576 4,009,358 Cost of shares redeemed (3,626,871) (4,901,966) ------------ ----------- Net increase 162,898 7,113,056 ------------ ----------- INSTITUTIONAL CLASS Proceeds from shares issued 8,273,046 54,450,150 Dividends reinvested 1,318,726 22,245 Cost of shares redeemed (4,527,065) (650,757) ------------ ----------- Net increase 5,064,707 53,821,638 ------------ ----------- Net increase in net assets from fund share transactions: 5,227,605 60,934,694 ------------ ----------- Total increase/(decrease) in net assets (25,894,870) 52,471,956 NET ASSETS: Beginning of period $ 97,161,969 $44,690,013 ------------ ----------- End of period $ 71,267,099 $97,161,969 ============ =========== Accumulated undistributed net investment income $ 37,129 $ -- ============ =========== SHARE TRANSACTIONS: INDIVIDUAL CLASS Issued 347,845 749,103 Reinvested 122,168 344,626 Redeemed (465,497) (403,287) ------------ ----------- Change in Individual Class 4,516 690,442 ------------ ----------- INSTITUTIONAL CLASS Issued 1,035,326 5,059,013 Reinvested 188,610 1,901 Redeemed (564,510) (54,515) ------------ ----------- Change in Institutional Class 659,426 5,006,399 ------------ -----------
SEE NOTES TO FINANCIAL STATEMENTS. 51 STEWARD FUNDS STATEMENTS OF CHANGES IN NET ASSETS INTERNATIONAL ENHANCED INDEX FUND - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED YEAR ENDED APRIL 30, 2009 APRIL 30, 2008 -------------- -------------- CHANGE IN NET ASSETS FROM OPERATIONS: Net investment income $ 1,824,671 $ 1,213,562 Net realized gain/(loss) on investments and foreign currency (1,621,746) 1,697,333 Net change in unrealized appreciation/(depreciation) on investments and foreign currency (40,352,490) 681,243 ------------ ----------- Change in net assets resulting from operations (40,149,565) 3,592,138 ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Individual Class (232,341) (6,372) Institutional Class (1,794,317) (916,965) Net realized gains: Individual Class (28,335) (15,433) Institutional Class (189,373) (1,585,244) ------------ ----------- Total distributions (2,244,366) (2,524,014) ------------ ----------- CAPITAL TRANSACTIONS: INDIVIDUAL CLASS Proceeds from shares issued 3,987,324 10,193,986 Dividends reinvested 260,563 21,761 Cost of shares redeemed (1,704,628) (228,642) ------------ ----------- Net increase 2,543,259 9,987,105 ------------ ----------- INSTITUTIONAL CLASS Proceeds from shares issued 12,744,281 54,050,775 Dividends reinvested 1,983,690 2,502,208 Cost of shares redeemed (6,121,712) (7,466,040) ------------ ----------- Net increase 8,606,259 49,086,943 ------------ ----------- Net increase in net assets from fund share transactions: 11,149,518 59,074,048 ------------ ----------- Total increase/(decrease) in net assets (31,244,413) 60,142,172 NET ASSETS: Beginning of period $ 91,322,093 $31,179,921 ------------ ----------- End of period $ 60,077,680 $91,322,093 ============ =========== Accumulated undistributed net investment income $ 200,153 $ 403,242 ============ =========== SHARE TRANSACTIONS: INDIVIDUAL CLASS Issued 206,700 357,724 Reinvested 13,014 724 Redeemed (99,527) (7,864) ------------ ----------- Change in Individual Class 120,187 350,584 ------------ ----------- INSTITUTIONAL CLASS Issued 669,723 1,896,460 Reinvested 98,228 82,848 Redeemed (321,570) (257,430) ------------ ----------- Change in Institutional Class 446,381 1,721,878 ------------ -----------
SEE NOTES TO FINANCIAL STATEMENTS. 52 STEWARD FUNDS STATEMENTS OF CHANGES IN NET ASSETS SELECT BOND FUND - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED YEAR ENDED APRIL 30, 2009 APRIL 30, 2008 -------------- -------------- CHANGE IN NET ASSETS FROM OPERATIONS: Net investment income $ 5,944,219 $ 4,770,342 Net realized gain/(loss) on investments 529,763 (305,380) Net change in unrealized appreciation/(depreciation) on investments (2,038,956) 841,054 ------------ ------------ Change in net assets resulting from operations 4,435,026 5,306,016 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Individual Class (673,719) (76,702) Institutional Class (5,645,705) (4,636,209) ------------ ------------ Total distributions (6,319,424) (4,712,911) ------------ ------------ CAPITAL TRANSACTIONS: INDIVIDUAL CLASS Proceeds from shares issued 5,399,803 16,092,898 Dividends reinvested 672,835 75,719 Cost of shares redeemed (7,912,259) (1,404,057) ------------ ------------ Net increase/(decrease) (1,839,621) 14,764,560 ------------ ------------ INSTITUTIONAL CLASS Proceeds from shares issued 9,040,942 69,368,866 Dividends reinvested 5,562,009 4,518,224 Cost of shares redeemed (19,458,686) (44,792,411) ------------ ------------ Net increase/(decrease) (4,855,735) 29,094,679 ------------ ------------ Net increase/(decrease) in net assets from fund share transactions: (6,695,356) 43,859,239 ------------ ------------ Total increase/(decrease) in net assets (8,579,754) 44,452,344 NET ASSETS: Beginning of period $149,257,545 $104,805,201 ------------ ------------ End of period $140,677,791 $149,257,545 ============ ============ Accumulated undistributed net investment income $ 212,901 $ 582,409 ============ ============ SHARE TRANSACTIONS: INDIVIDUAL CLASS Issued 223,363 652,804 Reinvested 27,966 3,136 Redeemed (329,014) (57,449) ------------ ------------ Change in Individual Class (77,685) 598,491 ------------ ------------ INSTITUTIONAL CLASS Issued 375,149 2,836,737 Reinvested 232,294 187,469 Redeemed (810,044) (1,824,345) ------------ ------------ Change in Institutional Class (202,601) 1,199,861 ------------ ------------
SEE NOTES TO FINANCIAL STATEMENTS. 53 STEWARD FUNDS STATEMENTS OF CHANGES IN NET ASSETS GLOBAL EQUITY INCOME FUND - --------------------------------------------------------------------------------
FOR THE FOR THE YEAR ENDED PERIOD ENDED APRIL 30, 2009 APRIL 30, 2008(a) -------------- ----------------- CHANGE IN NET ASSETS FROM OPERATIONS: Net investment income $ 2,856,090 $ 169,601 Net realized gain/(loss) on investments and foreign currency (13,282,641) -- Net change in unrealized appreciation/(depreciation) on investments and foreign currency (19,091,189) 323,393 ------------ ----------- Change in net assets resulting from operations (29,517,740) 492,994 ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income: Individual Class (317,976) -- Institutional Class (2,454,081) -- ------------ ----------- Total distributions (2,772,057) -- ------------ ----------- CAPITAL TRANSACTIONS: INDIVIDUAL CLASS Proceeds from shares issued 3,062,558 9,524,375 Dividends reinvested 317,976 -- Cost of shares redeemed (1,659,193) (50,673) ------------ ----------- Net increase 1,721,341 9,473,702 ------------ ----------- INSTITUTIONAL CLASS Proceeds from shares issued 10,558,191 75,673,262 Dividends reinvested 2,454,080 -- Cost of shares redeemed (6,993,240) (411,797) ------------ ----------- Net increase 6,019,031 75,261,465 ------------ ----------- Net increase in net assets from fund share transactions: 7,740,372 84,735,167 ------------ ----------- Total increase/(decrease) in net assets (24,549,425) 85,228,161 NET ASSETS: Beginning of period $ 85,228,161 $ -- ------------ ----------- End of period $ 60,678,736 $85,228,161 ============ =========== Accumulated undistributed net investment income $ 262,122 $ 171,947 ============ =========== SHARE TRANSACTIONS: INDIVIDUAL CLASS Issued 148,710 383,192 Reinvested 16,778 -- Redeemed (94,019) (2,016) ------------ ----------- Change in Individual Class 71,469 381,176 ------------ ----------- INSTITUTIONAL CLASS Issued 570,517 3,028,118 Reinvested 129,364 -- Redeemed (371,147) (16,449) ------------ ----------- Change in Institutional Class 328,734 3,011,669 ------------ -----------
(a) For the period from April 1, 2008 (commencement of operations) through April 30, 2008. SEE NOTES TO FINANCIAL STATEMENTS. 54 THIS PAGE INTENTIONALLY LEFT BLANK 55 STEWARD FUNDS FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- The following tables set forth the per share operating performance data for a share of capital stock outstanding, total return ratios to average net assets and other supplemental data for each period indicated.
INVESTMENT OPERATIONS: -------------------------------------------------- NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING INVESTMENT GAINS/(LOSSES) INVESTMENT OF PERIOD INCOME/(LOSS) ON INVESTMENTS OPERATIONS - ----------------------------------------------------------------------------------------------------------------------- INDIVIDUAL CLASS - ----------------------------------------------------------------------------------------------------------------------- LARGE CAP ENHANCED INDEX FUND Year ended April 30, 2009 $28.09 0.30 (10.23) (9.93) Year ended April 30, 2008 32.19 0.07 (1.96) (1.89) Year ended April 30, 2007 30.33 0.22 3.20 3.42 Year ended April 30, 2006 25.47 0.16 5.15 5.31 Year ended April 30, 2005(c) 25.00 0.12 0.45 0.57 - ----------------------------------------------------------------------------------------------------------------------- SMALL MID-CAP ENHANCED INDEX FUND Year ended April 30, 2009 $10.78 0.07 (3.26) (3.19) Year ended April 30, 2008 13.60 (0.02) (1.31) (1.33) Year ended April 30, 2007 13.26 (0.08) 1.00 0.92 Period ended April 30, 2006(d) 12.99 (0.04) 1.93 1.89 Year ended October 31, 2005 12.30 0.02 0.69 0.71 - ----------------------------------------------------------------------------------------------------------------------- INTERNATIONAL ENHANCED INDEX FUND Year ended April 30, 2009 $29.28 0.47 (12.84) (12.37) Year ended April 30, 2008 29.87 0.67 0.79 1.46 Year ended April 30, 2007 26.39 0.38 3.59 3.97 Period ended April 30, 2006(f) 25.00 0.04 1.35 1.39 - ----------------------------------------------------------------------------------------------------------------------- SELECT BOND FUND Year ended April 30, 2009 $24.52 0.92 (0.24) 0.68 Year ended April 30, 2008 24.35 0.79 0.37 1.16 Year ended April 30, 2007 23.89 1.01 0.38 1.39 Year ended April 30, 2006 24.73 0.89 (0.86) 0.03 Period ended April 30, 2005(c) 25.00 0.43(g) (0.40) 0.03 - ----------------------------------------------------------------------------------------------------------------------- GLOBAL EQUITY INCOME FUND Year ended April 30, 2009 $25.11 0.74 (9.13) (8.39) Period ended April 30, 2008(h) 25.00 0.03 0.08 0.11 - ----------------------------------------------------------------------------------------------------------------------- INSTITUTIONAL CLASS - ----------------------------------------------------------------------------------------------------------------------- LARGE CAP ENHANCED INDEX FUND Year ended April 30, 2009 $27.95 0.37 (10.19) (9.82) Year ended April 30, 2008 32.10 0.35 (2.15) (1.80) Year ended April 30, 2007 30.33 0.27 3.23 3.50 Year ended April 30, 2006 25.47 0.22 5.16 5.38 Year ended April 30, 2005(c) 25.00 0.14 0.46 0.60 - ----------------------------------------------------------------------------------------------------------------------- SMALL MID-CAP ENHANCED INDEX FUND Year ended April 30, 2009 $10.84 0.08 (3.27) (3.19) Year ended April 30, 2008 13.63 0.02 (1.31) (1.29) Year ended April 30, 2007 13.21 (0.01) 1.01 1.00 Period ended April 30, 2006(e) 13.11 - 0.10 0.10 - ----------------------------------------------------------------------------------------------------------------------- INTERNATIONAL ENHANCED INDEX FUND Year ended April 30, 2009 $29.33 0.55 (12.88) (12.33) Year ended April 30, 2008 29.92 0.83 0.72 1.55 Year ended April 30, 2007 26.43 0.45 3.59 4.04 Period ended April 30, 2006(f) 25.00 0.09 1.34 1.43 - ----------------------------------------------------------------------------------------------------------------------- SELECT BOND FUND Year ended April 30, 2009 $24.41 0.99 (0.24) 0.75 Year ended April 30, 2008 24.30 1.08 0.13 1.21 Year ended April 30, 2007 23.90 1.04 0.40 1.44 Year ended April 30, 2006 24.73 0.93 (0.83) 0.10 Period ended April 30, 2005(c) 25.00 0.46(g) (0.40) 0.06 - ----------------------------------------------------------------------------------------------------------------------- GLOBAL EQUITY INCOME FUND Year ended April 30, 2009 $25.12 0.81 (9.14) (8.33) Period ended April 30, 2008(h) 25.00 0.05 0.07 0.12 - -----------------------------------------------------------------------------------------------------------------------
* Portfolio turnover is calculated on the basis of the fund as whole without distinguishing between the classes of shares issued. (a) Not annualized for periods less than one year. (b) Annualized for periods less than one year. (c) For the period from October 1, 2004 (commencement of operations) through April 30, 2005. (d) For the period from November 1, 2005 to April 30, 2006. (e) For the period from April 3, 2006 (period of commencement) through April 30, 2006. (f) For the period from February 28, 2006 (period of commencement) through April 30, 2006. (g) Computed using average shares outstanding throughout the period. (h) For the period from April 1, 2008 (commencement of operations) through April 30, 2008. SEE NOTES TO FINANCIAL STATEMENTS. 56
DISTRIBUTIONS: RATIOS/SUPPLEMENTARY DATA: - ------------------------------------------- --------------------------------------------------------- RATIO OF RATIO OF NET NET ASSET NET ASSETS EXPENSES TO NET INVESTMENT NET REALIZED VALUE, END OF AVERAGE INCOME/(LOSS) INVESTMENT GAINS ON TOTAL END OF TOTAL PERIOD NET TO AVERAGE PORTFOLIO INCOME INVESTMENTS DISTRIBUTIONS PERIOD RETURN(a) (000'S) ASSETS(b) NET ASSETS(b) TURNOVER RATE* =============================================================================================================================== (0.30) (1.29) (1.59) $16.57 (35.20)% $ 11,851 0.93% 1.47% 23% (0.22) (1.99) (2.21) 28.09 (6.36)% 16,950 1.01% 0.51% 74% (0.09) (1.47) (1.56) 32.19 11.65% 2,164 0.93% 0.64% 14% (0.16) (0.29) (0.45) 30.33 20.95% 3,693 1.01% 0.54% 8% (0.10) - (0.10) 25.47 2.26% 2,896 1.21% 0.69% 16% - ------------------------------------------------------------------------------------------------------------------------------- (0.06) (0.17) (0.23) $ 7.36 (29.41)% $ 29,142 0.98% 0.90% 33% (0.01) (1.48) (1.49) 10.78 (10.59)% 42,633 1.49% (0.17)% 72% - (0.58) (0.58) 13.60 7.16% 44,367 1.50% (0.58)% 20% - (1.62) (1.62) 13.26 15.95% 46,112 1.71% (0.59)% 30% (0.02) - (0.02) 12.99 5.79% 42,455 1.67% 0.16% 113% - ------------------------------------------------------------------------------------------------------------------------------- (0.56) (0.06) (0.62) $16.29 (42.65)% $ 7,717 1.09% 2.39% 5% (0.72) (1.33) (2.05) 29.28 4.77% 10,351 1.13% 5.11% 20% (0.42) (0.07) (0.49) 29.87 15.43% 86 1.28% 1.55% 6% - - - 26.39 5.56% 3 1.53% 2.61% 1% - ------------------------------------------------------------------------------------------------------------------------------- (0.97) - (0.97) $24.23 2.85% $ 14,616 0.95% 3.79% 39% (0.99) - (0.99) 24.52 4.89% 16,695 1.08% 3.92% 36% (0.93) - (0.93) 24.35 5.99% 2,009 0.97% 4.05% 32% (0.87) - (0.87) 23.89 0.07% 2,583 0.97% 3.53% 40% (0.29) (0.01) (0.30) 24.73 0.14% 3,050 1.07% 2.92% 44% - ------------------------------------------------------------------------------------------------------------------------------- (0.73) - (0.73) $15.99 (33.86)% $ 7,236 1.09% 3.82% 28% - - - 25.11 0.44% 9,572 1.44% 3.35% 0% - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- (0.36) (1.29) (1.65) $16.48 (34.99)% $ 92,373 0.58% 1.84% 23% (0.36) (1.99) (2.35) 27.95 (6.13)% 137,446 0.64% 1.07% 74% (0.26) (1.47) (1.73) 32.10 11.95% 88,362 0.68% 0.88% 14% (0.23) (0.29) (0.52) 30.33 21.25% 89,555 0.76% 0.79% 8% (0.13) - (0.13) 25.47 2.37% 67,835 0.96% 0.93% 16% - ------------------------------------------------------------------------------------------------------------------------------- (0.08) (0.17) (0.25) $ 7.40 (29.26)% $ 42,125 0.72% 1.01% 33% (0.02) (1.48) (1.50) 10.84 (10.27)% 54,529 0.80% 0.38% 72% - (0.58) (0.58) 13.63 7.79% 323 1.28% (0.45)% 20% - - - 13.21 0.76% - 1.46% (0.34)% 30% - ------------------------------------------------------------------------------------------------------------------------------- (0.62) (0.06) (0.68) $16.32 (42.48)% $ 52,361 0.76% 2.73% 5% (0.81) (1.33) (2.14) 29.33 5.06% 80,971 0.88% 3.07% 20% (0.48) (0.07) (0.55) 29.92 15.67% 31,093 1.03% 1.82% 6% - - - 26.43 5.72% 15,934 1.31% 2.83% 1% - ------------------------------------------------------------------------------------------------------------------------------- (1.05) - (1.05) $24.11 3.16% $126,062 0.63% 4.09% 39% (1.10) - (1.10) 24.41 5.11% 132,563 0.69% 4.37% 36% (1.04) - (1.04) 24.30 6.16% 102,796 0.69% 4.32% 32% (0.93) - (0.93) 23.90 0.36% 100,798 0.72% 3.78% 40% (0.32) (0.01) (0.33) 24.73 0.25% 92,265 0.82% 3.17% 44% - ------------------------------------------------------------------------------------------------------------------------------- (0.79) - (0.79) $16.00 (33.63)% $ 53,443 0.72% 4.20% 28% - - - 25.12 0.48% 75,656 0.81% 2.73% 0% - -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 57 STEWARD FUNDS NOTES TO FINANCIAL STATEMENTS - April 30, 2009 - -------------------------------------------------------------------------------- NOTE 1 - ORGANIZATION The Steward Funds consist of five funds (individually a "Fund" and, collectively, the "Funds") that are series of two separate companies: the Steward Funds, Inc. and the Capstone Series Fund, Inc. The Funds are organized as Maryland corporations. Each is registered under the Investment Company Act of 1940 ("Act") as a diversified open-end management investment company. Four of the Funds are series of Steward Funds, Inc. - Steward Large Cap Enhanced Index Fund, Steward Global Equity Income Fund, Steward International Enhanced Index Fund, and Steward Select Bond Fund. One Fund, Steward Small-Mid Cap Enhanced Index Fund, is a series of Capstone Series Fund, Inc. Each Fund currently offers two Classes of shares ("Individual Class" and "Institutional Class"). Each Class of shares has equal rights as to earnings, assets and voting privileges, except that Individual Class bears expenses under a Service and Distribution Plan and an Administrative Services Plan. Each Class of shares has exclusive voting rights with respect to matters that affect just that Class or on which the interests of the Class differ from the interests of the other Class. Income and realized and unrealized gains and losses on investments are allocated to each Class of shares based on its relative net assets. NOTE 2 - INVESTMENT OBJECTIVES: Steward Large Cap Enhanced Index Fund seeks to provide long-term capital appreciation. The Fund invests primarily in common stocks of large capitalization companies that represent a broad spectrum of the United States economy and allocates selectively between growth and value-type securities. Currently, stocks with market capitalizations between $459 million and $338 billion are considered to be large capitalization stocks. Steward Small-Mid Cap Enhanced Index Fund seeks to provide long term capital appreciation. The Fund invests primarily in common stocks of small and medium capitalization companies that represent a broad spectrum of the United States economy and allocates selectively between growth and value-type securities. Currently, stocks with market capitalizations between $32 million and $5.5 billion are considered to be small to medium capitalization stocks. Steward Global Equity Income Fund seeks to provide current income along with growth of capital. The Fund invests primarily in dividend-paying common stocks of large, medium and small capitalization companies that represent a broad spectrum of the global economy. The Fund's non-U.S. investments will be primarily in the form of American Depository Receipts ("ADRs"). Steward International Enhanced Index Fund seeks to provide long-term capital appreciation. The Fund invests primarily in American Depository Receipts ("ADRs") representing securities of companies located or domiciled outside of the United States, with selective allocation between equity securities of developed market companies and emerging market companies. Steward Select Bond Fund seeks to provide high current income with capital appreciation and growth of income. The Fund invests primarily in fixed income investments such as corporate bonds, mortgage-backed securities and government and agency bonds and notes. In pursuing their investment objectives, the Funds apply a comprehensive set of cultural value screens to all of their portfolio investments. NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES: The preparation of financial statements in conformity with accounting principals generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds. PORTFOLIO VALUATION: Fund investments are recorded at fair value. Portfolio securities listed on a domestic or foreign exchange are valued at the last sale price on the day of valuation or, if there was no sale that day, at the mean between the last reported bid and asked prices as of the close of trading. Equity securities traded on NASDAQ use the official closing price, if 58 available, and otherwise, use the last reported sale price, or the mean between the last reported bid and asked prices if there was no sale on that day. Equity securities that are traded in the over-the-counter market only, but that are not included on NASDAQ, are valued at the last sale price on the day of valuation. Debt securities with a remaining maturity of sixty days or more are valued using a pricing service when such prices are believed to reflect fair value. Debt securities with a remaining maturity of less than sixty days are valued at amortized cost, which approximates fair value. All other securities and securities with no readily determinable market values are valued at their fair value in accordance with policies and procedures adopted by the Board of Directors. The Select Bond Fund's investment in mortgage bonds of religious organizations are generally considered to be illiquid due to the limited, if any, secondary market for these bonds. In the absence of such secondary market, the Select Bond Fund values investments in church bonds on the basis of readily available market quotations or, lacking such quotations, at fair value as determined under policies approved by and under the general oversight of the Board of Directors. In determining fair value all relevant qualitative and quantitative factors available are considered. These factors are subject to change over time and are reviewed periodically. The current method of valuation is a matrix formula that derives a bid price based on relevant factors, including principal amount, interest rate, term, credit quality and spreads determined under a church bond benchmark yield curve. The Adviser constructs and maintains a church bond benchmark yield curve based on new issue church bonds meeting the Fund's investment requirements. Strongtower Financial, an underwriter of a significant volume of church mortgage backed bonds including bonds purchased by the Fund, provides credit research and analysis to the Adviser. When in the judgment of the Adviser, the fair value of an individual security, as determined utilizing the matrix formula, no longer represents the fair value of that security, the Adviser will determine a fair value of that security. Factors that the Adviser might consider in establishing the fair value include, but would not be limited to, the general conditions in the church bond market and the overall financial market, the transaction price of any recent sales or purchases of the security; the transaction price, maturity and yield-to-maturity of any other fixed income security of the issuer; the estimated value of the underlying collateral and the issuer's payment history including the consideration of default on interest payments and/or delinquency on sinking fund payments. Because of the inherent uncertainty of valuations determined both by utilizing the matrix formula and by the Adviser, those estimated fair values may differ significantly from the values that another party might estimate or that would have been used had a ready market for the investments existed. The differences could be material. Effective May 1, 2008, the Funds adopted Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("SFAS 157"). This standard establishes a single authoritative definition of fair value and requires additional disclosure about fair value measurements. Various inputs are used to determine the value of the Funds' investments. These inputs are summarized in the three broad levels listed below: Level 1 - quoted prices in active markets for identical securities. Level 2 - other significant observable inputs other than Level 1 quoted prices (including, but not limited to quoted prices for similar securities, interest rates, prepayments spreads and credit risks). Level 3 - significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments). The following is a summary of the inputs used to value the following Funds' investments as of April 30, 2009:
LEVEL 2 - LEVEL 3 - LEVEL 1 - OTHER SIGNIFICANT SIGNIFICANT QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS INVESTMENTS INVESTMENTS INVESTMENTS FUND NAME IN SECURITIES IN SECURITIES IN SECURITIES - --------- ------------- ----------------- ------------------- Steward Large Cap Enhanced Index Fund ................ $104,175,731 $ - $ - Steward Small Mid-Cap Enhanced Index Fund ............ 71,345,766 - - Steward International Enhanced Index Fund ............ 59,843,556 - - Steward Select Bond Fund ............................. 5,646,644 131,067,809 2,660,018 Steward Global Equity Income Fund .................... 60,442,939 - -
59 Following is a reconciliation of Level 3 assets (at either the beginning or the ending of the period) for which significant unobservable inputs were used to determine fair value.
STEWARD SELECT BOND FUND -------------- INVESTMENTS IN SECURITIES ------------- Balance as of May 1, 2008 ....................................................... $2,748,269 Accrued Accretion / (Amortization) .............................................. - Change in Unrealized Appreciation / (Depreciation) .............................. (31,251) Realized Gain / (Loss) .......................................................... - Net Purchase / (Sales) .......................................................... (57,000) Transfers In / (Out) of Level 3 ................................................. - ---------- Balance as of April 30, 2009 .................................................... $2,660,018 ==========
NEW ACCOUNTING PRONOUNCEMENTS: In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161"). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Funds' derivative and hedging activities, including how such activities are accounted for and their effect on the Funds' financial position, performance and cash flows. Management is currently evaluating the implications of SFAS 161 and the impact on the Funds' financial statements. In April 2009, FASB issued FASB Staff Position No. 157-4, Determining Fair Value when the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Indentifying Transactions That Are Not Orderly, ("FSP 157-4"). FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. FSP 157-4 provides additional guidance on indentifying circumstances that indicate a transaction is not orderly. FSP 157-4 requires entities to describe the inputs used in valuation techniques used to measure fair value and changes in inputs over the period. FSP 157-4 expands the three-level hierarchy disclosure and level three-roll forward disclosure for each major security type as described in paragraph 19 of FAS No. 115, Accounting for Certain Investments in Debt and Equity Securities. Management is currently evaluating the impact the implementation of FSP 157-4 will have on the Funds' financial statement disclosures. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: For financial reporting purposes, portfolio security transactions are recorded on trade date. Net realized gains or losses on sales of securities are determined by the identified cost method. Interest income, adjusted for accretion of discounts and amortization of premiums, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date, or as soon as practical after a Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Income and capital gains on some foreign securities may be subject to foreign withholdings taxes, which are accrued as applicable, and have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and regulations. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income, if any, of all Funds are declared and paid quarterly. For all Funds, all net realized long-term or short-term capital gains, if any, will be declared and distributed at least annually. Income dividends and capital gains distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income, gains and losses on various investment securities held by the Funds, timing differences in the recognition of income, gains and losses and differing characterizations of distributions made by the Funds. Income dividends and capital gain distributions are recorded on the ex-dividend date. FEDERAL INCOME TAXES: The Funds intend to qualify as regulated investment companies under Sub-Chapter M the Internal Revenue Code and accordingly, will generally not be subject to federal and state income taxes or federal excise taxes to the extent that they intend to make sufficient distributions of net investment income and net realized capital gains. As of and during the year ended April 30, 2009, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the Funds did not incur any interest or penalties. The Funds are not subject to examination by U.S. federal tax authorities for tax years before 2005. 60 ALLOCATION OF EXPENSES: Expenses directly attributable to a Fund or Class are charged directly to that Fund or Class, while expenses that are attributable to more than one Fund or Class are allocated among the respective Funds and their Classes based upon relative net assets or some other reasonable method. FOREIGN SECURITIES: Investments in securities of issuers in foreign countries involves risks not associated with domestic investments. These risks include, but are not limited to: (1) political and financial instability; (2) currency exchange rate fluctuations; (3) greater price volatility and less liquidity in particular securities and in certain foreign markets; (4) lack of uniform accounting, auditing and financial reporting standards; (5) less government regulation and supervision of some foreign stock exchanges, brokers and listed companies; (6) delays in transaction settlement in certain foreign markets; and (7) less availability of information. Securities of issuers in emerging and developing countries raise additional risks relative to investments in developed country issuers, including exposure to less mature and diversified economies and to less stable market and political systems, as well as to possible currency transfer restrictions, delays and disruptions in settlement of transactions, and higher volatility than found in developed countries. NOTE 4 - INVESTMENT ADVISORY AND OTHER AGREEMENTS Capstone Asset Management Company ("CAMCO"), a wholly-owned subsidiary of Capstone Financial Services, Inc. ("CFS") serves as investment adviser to the Funds. CAMCO receives compensation for its services as investment adviser. The fee is accrued daily and paid monthly based on each Fund's average daily net assets. Pursuant to the terms of the investment advisory agreement, CAMCO has full discretion to manage the assets of the Funds in accordance with its investment objectives. The advisory fees for the Large Cap Enhanced Index Fund are calculated at the annual rate of 0.15% on the first $500 million of the Fund's average daily net assets. The rate then declines to 0.125% on the next $500 million of average daily net assets, and to 0.10% on average daily net assets in excess of $1 billion. The Global Equity Income Fund and the International Enhanced Index Fund each pay 0.30% on the first $500 million of the Fund's average daily net assets. The rate then declines to 0.25% on the next $500 million of average daily net assets, and to 0.20% on average daily net assets in excess of $1 billion. The Select Bond Fund pays 0.25% on the first $500 million of the Fund's average daily net assets. The rate then declines to 0.20% on the next $500 million of average daily net assets, and to 0.175% on average daily net assets in excess of $1 billion. The Small-Mid Cap Enhanced Index Fund pays 0.15% on the first $500 million of the Fund's average daily net assets. The rate then declines to 0.125% on the next $500 million of average daily net assets, and to 0.10% on average daily net assets in excess of $1 billion. Pursuant to the terms of an administration agreement, CAMCO will supervise the Funds' daily business affairs, coordinate the activities of persons providing services to the Funds, and furnish office space and equipment to the Funds. As compensation for its services, CAMCO receives a monthly fee from each Fund calculated at the annual rate of 0.075% on the first $500 million of the Funds' aggregate average daily net assets. The rate declines to 0.03% of the Funds' aggregate average daily net assets in excess of $500 million. Capstone Asset Planning Company ("CAPCO") serves as the Distributor of the Funds' shares. CAPCO is an affiliate of CAMCO, and both are wholly owned subsidiaries of CFS. Each of the Funds has adopted a Service and Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act whereby the Fund's assets are used to compensate CAPCO for costs and expenses incurred in connection with the distribution and marketing of shares of each Fund and servicing of each Fund's Individual Class shareholders. Distribution and marketing expenses include, among other things, printing of prospectuses for prospective investors, advertising literature, and costs of personnel involved with the promotion and distribution of the Funds' shares. Under the Plan, the Funds pay CAPCO an amount computed monthly at an annual rate of 0.25% of each Fund's Individual Class average daily net assets (including reinvested dividends paid with respect to those assets). Of this amount, CAPCO may allocate to securities dealers and other financial institutions and organizations (collectively "Service Organizations") amounts based on the particular Fund's average net assets owned by stockholders for whom the Service Organizations have a servicing relationship. The Administrative Services Plan provides that each Fund, out of assets attributable to its Individual Class shares, shall compensate CAPCO to cover the costs of payments to certain third-party shareholder service providers related to the administration of group accounts in which Fund shareholders participate. The fee is charged to the Individual Class as a whole, up to 0.10% on the average daily net assets. The fee charged will be limited to the amount of fees paid to third-party shareholder service providers, which is calculated based on the value of shares held in such group accounts. The fee is in addition to fees payable for the Service and Distribution Plan. 61 CFS Consulting Services, LLP ("CCS") formerly known as Steward Fund Consultants, LLC, serves as a consultant to the Funds. CCS is an affiliate of CAMCO, and both are wholly-owned subsidiaries of CFS. CFS acquired CCS on October 1, 2008. Per the consulting agreement, CCS receives its fee monthly, based on the annual average aggregate daily net assets of the Funds as follows: First $ 200,000,000 0.100% Next $ 200,000,000 0.075% Next $ 200,000,000 0.060% Next $ 400,000,000 0.050% Over $1,000,000,000 0.040% Certain officers and directors of the Funds are also officers of CAMCO, CAPCO and CCS. Citi Fund Services Ohio, Inc. ("Citi Ohio"), serves as the Funds' transfer agent and fund accountant. Under the terms of the Transfer Agency Agreement, Citi Ohio will be paid for annual per class fees and per account fees. Per the Fund Accounting Agreement, Citi Ohio is entitled to receive a monthly fee from each Fund calculated at the annual rate of 0.07% of each Fund's average daily net assets. NOTE 5 - SECURITIES LENDING: The Funds have entered into a securities lending arrangement with the custodian. Under the terms of the agreement, the custodian is authorized to loan securities on behalf of the Funds to Credit Suisse, New York Branch ("CSNYB"), against receipt of cash collateral at least equal to the value of the securities loaned. The cash collateral is invested by CSNYB in securities guaranteed by the U. S. Government, time deposits, certificates of deposit, or money markets approved by the Adviser. The agreement provides that after predetermined rebates to the brokers, the income generated from lending transactions is allocated 70% to the Funds and 30% to CSNYB. As of and during the year ended, April 30, 2009, there were no securities on loan for any of the Funds. NOTE 6 - PURCHASES AND SALES OF SECURITIES: Purchases and sales of portfolio securities (excluding short-term securities) for the year ended April 30, 2009 were as follows:
PURCHASES SALES ----------- ----------- Large Cap Enhanced Index Fund ....................... $33,750,850 $27,332,624 Small-Mid Cap Enhanced Index Fund ................... 29,504,793 25,264,853 International Enhanced Index Fund ................... 14,826,674 3,571,187 Select Bond Fund .................................... 54,187,426 59,135,404 Global Equity Income Fund ........................... 27,856,892 19,368,271
NOTE 7 - FEDERAL INCOME TAX INFORMATION As of April 30, 2009, the cost, gross unrealized appreciation and gross unrealized depreciation on securities, for federal income tax purposes, were as follows:
NET UNREALIZED TAX UNREALIZED TAX UNREALIZED APPRECIATION TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION) ------------ -------------- -------------- -------------- Large Cap Enhanced Index Fund........................ $146,255,716 $2,107,113 $(44,187,098) $(42,079,985) Small-Mid Cap Enhanced Index Fund ................... 94,829,138 4,148,879 (27,632,251) (23,483,372) International Enhanced Index Fund.................... 94,828,105 96,628 (35,081,177) (34,984,549) Select Bond Fund..................................... 142,193,515 2,599,696 (5,418,740) (2,819,044) Global Equity Income Fund............................ 79,455,209 1,474,938 (20,487,208) (19,012,270)
62 The tax character of distribution paid during the fiscal year ended April 30, 2009 was as follows:
DISTRIBUTIONS PAID FROM --------------------------- TOTAL ORDINARY NET LONG TERM TOTAL TAXABLE DISTRIBUTIONS INCOME CAPITAL GAINS DISTRIBUTIONS PAID(1) --------- ------------- ------------- ------------- Large Cap Enhanced Index Fund .................... $2,040,084 $7,278,223 $9,318,307 $9,318,307 Small-Mid Cap Enhanced Index Fund ................ 696,055 1,541,630 2,237,685 2,237,685 International Enhanced Index Fund ................ 2,026,655 217,712 2,244,367 2,244,367 Select Bond Fund ................................. 6,319,424 - 6,319,424 6,319,424 Global Equity Income Fund ........................ 2,772,057 - 2,772,057 2,772,057
On June 22, 2009, and June 23, 2009, the Funds declared and paid, respectively, a distribution from ordinary income for the following amounts: Small-Mid Cap Enhanced Index Fund ................ $109,953 Large Cap Enhanced Index Fund .................... 516,810 Select Bond Fund ................................. 992,504 International Enhanced Index Fund ................ 656,977 Global Equity Income Fund ........................ 678,827 The tax character of distributions paid during the fiscal year ended April 30, 2008 was as follows:
DISTRIBUTIONS PAID FROM --------------------------- TOTAL ORDINARY NET LONG TERM TOTAL TAXABLE DISTRIBUTIONS INCOME CAPITAL GAINS DISTRIBUTIONS PAID(1) --------- ------------- ------------- ------------- Large Cap Enhanced Index Fund .................... $1,612,176 $4,926,058 $6,538,234 $6,538,234 Small-Mid Cap Enhanced Index Fund ................ 344,340 4,227,972 4,572,312 4,572,312 International Enhanced Index Fund ................ 1,187,384 1,336,630 2,524,014 2,524,014 Select Bond Fund ................................. 4,712,911 - 4,712,911 4,712,911 Global Equity Income Fund ........................ - - - -
As of April 30, 2009 the components of accumulated earnings/(deficit) on a tax basis was as follows:
UNDISTRIBUTED TOTAL UNDISTRIBUTED LONG-TERM ACCUMULATED UNREALIZED ACCUMULATED ORDINARY CAPITAL ACCUMULATED CAPITAL AND APPRECIATION EARNINGS INCOME GAINS EARNINGS OTHER LOSSES (DEPRECIATION)(2) (DEFICIT) -------- ------- ----------- ------------ ----------------- ------------- Large Cap Enhanced Index Fund .... $108,442 $ - $108,442 $(12,563,993) $(42,079,985) $(54,535,536) Small-Mid Cap Enhanced Index Fund .................... 37,129 - 37,129 (9,386,381) (23,483,372) (32,832,624) International Enhanced Index Fund .................... 201,258 - 201,258 (1,512,878) (34,984,549) (36,296,169) Select Bond Fund ................. 212,901 - 212,901 (1,336,067) (2,819,044) (3,942,210) Global Equity Income Fund ........ 264,346 - 264,346 (13,038,167) (19,012,270) (31,786,091)
(1) Total distributions paid may differ from the amount reported in the Statement of Changes in Net Assets because distributions for tax purposes are recognized when actually paid. (2) The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. 63 As of April 30, 2009, the following Funds had net capital loss carryforwards, which are available to offset future realized gains.
AMOUNT EXPIRES ------ ------- Large Cap Enhanced Index Fund .................... $1,742,539 2017 Small-Mid Cap Enhanced Index Fund ................ 538,823 2017 International Enhanced Index Fund ................ 141,269 2017 Select Bond Fund ................................. 143,208 2014 388,125 2015 804,734 2016 Global Equity Income Fund ........................ 288,759 2017
Under current tax law, capital losses realized after October 31 of a Fund's fiscal period may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The following Funds had deferred post October capital losses, which will be treated as arising on the first business day of the fiscal year ending April 30, 2010:
POST-OCTOBER LOSS ----------------- Large Cap Enhanced Index Fund .................... $10,821,454 Small-Mid Cap Enhanced Index Fund ............. 8,847,558 International Enhanced Index Fund ................ 1,371,609 Select Bond Fund ................................. - Global Equity Income Fund ........................ 12,749,408
NOTE 8 - RECLASSIFICATIONS: In accordance with GAAP, the Funds have made reclassifications among their capital accounts. These reclassifications are intended to adjust the components of the Funds' net assets to reflect the tax character of permanent book/tax differences and have no impact on the net assets or the net asset value of the Funds. As of April 30, 2009, the Funds made reclassifications to increase or (decrease) the components of the net assets detailed below:
ACCUMULATED NET REALIZED UNDISTRIBUTED GAIN/(LOSS) ON NET INVESTMENT INVESTMENT INCOME TRANSACTIONS CAPITAL -------------- --------------- ------- Large Cap Enhanced Index Fund .................... $(1,674) $ 1,674 $ - Small-Mid Cap Enhanced Index Fund ................ (3,988) 3,988 - International Enhanced Index Fund ................ (1,102) 1,102 - Select Bond Fund ................................. 5,697 (5,697) - Global Equity Income Fund ........................ 6,142 2,224 (8,366)
NOTE 9 - CONTINGENCIES AND COMMITMENTS In the normal course of business, the Funds enter into contracts that contain various representations and warranties and provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on future claims against the Funds and is presently unknown. However, based on experience, the Funds consider the risk of loss from such potential claims to be remote. 64 NOTE 10 - CONTROL OWNERSHIP: The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities creates a presumption of control of the Funds, under Section 2(a)(9) of the 1940 Act. As of April 30, 2009, the following were record owners of the approximate amounts of each share class listed below. Record ownership is not necessarily the same as beneficial ownership.
FUND SHAREHOLDER PERCENT OWNED - ---- ----------- ------------- Large Cap Enhanced Index Fund - Individual Class National Financial Services Corp. 81% Large Cap Enhanced Index Fund - Institutional Class National Financial Services Corp. 49% Large Cap Enhanced Index Fund - Institutional Class TD Ameritrade Trust Co. 45% Small-Mid Cap Enhanced Index Fund - Institutional Class TD Ameritrade Trust Co. 52% Small-Mid Cap Enhanced Index Fund - Institutional Class National Financial Services Corp. 48% International Enhanced Index Fund - Individual Class National Financial Services Corp. 94% International Enhanced Index Fund - Institutional Class National Financial Services Corp. 51% International Enhanced Index Fund - Institutional Class TD Ameritrade Trust Co. 48% Select Bond Fund - Individual Class National Financial Services Corp. 82% Select Bond Fund - Institutional Class National Financial Services Corp. 72% Select Bond Fund - Institutional Class TD Ameritrade Trust Co. 26% Global Equity Income Fund - Individual Class National Financial Services Corp. 100% Global Equity Income Fund - Institutional Class National Financial Services Corp. 48% Global Equity Income Fund - Institutional Class TD Ameritrade Trust Co. 51%
65 ================================================================================ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- TO THE SHAREHOLDERS AND BOARD OF DIRECTORS STEWARD FUNDS, INC. AND CAPSTONE SERIES FUND, INC. We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Steward Funds, Inc., comprised of the Steward Large Cap Enhanced Index Fund, the Steward Select Bond Fund, the Steward International Enhanced Index Fund and the Steward Global Equity Income Fund, and the Capstone Series Fund, Inc., comprised of Steward Small-Mid Cap Enhanced Index Fund (collectively referred to as the "Funds") as of April 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended for the Steward Large Cap Enhanced Index Fund, the Steward Select Bond Fund, the Steward International Enhanced Index Fund and the Steward Small-Mid Cap Enhanced Index Fund, and for each of the two periods in the period then ended for the Steward Global Equity Income Fund. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods indicated prior to April 30, 2007 were audited by another independent registered public accounting firm which expressed unqualified opinions on those financial highlights. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2009, by correspondence with the Funds' custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Steward Large Cap Enhanced Index Fund, the Steward Select Bond Fund, the Steward International Enhanced Index Fund, the Steward Global Equity Income Fund and the Steward Small-Mid Cap Enhanced Index Fund as of April 30, 2009, the results of their operations, the changes in their net assets, and their financial highlights for the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. /s/ Cohen Fund Audit Services COHEN FUND AUDIT SERVICES, LTD. WESTLAKE, OHIO JUNE 26, 2009 66 ================================================================================ GENERAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- FEDERAL INCOME TAX INFORMATION (UNAUDITED): During the fiscal year ended April 30, 2009, the Funds declared long-term realized gain distributions in the following amounts:
15% CAPITAL GAINS ----------- Large Cap Enhanced Index Fund .................... $7,278,223 Small-Mid Cap Enhanced Index Fund ................ 1,541,630 International Enhanced Index Fund ................ 217,712
For the fiscal year ended April 30, 2009, the following percentage of the total ordinary income distributions paid by the Funds qualify for the distributions received deduction available to corporate shareholders.
DISTRIBUTIONS RECEIVED DEDUCTION ------------------ Large Cap Enhanced Index Fund .................... 100% Small-Mid Cap Enhanced Index Fund ................ 100% International Enhanced Index Fund ................ -% Select Bond Fund ................................. -% Global Equity Income Fund ........................ 67%
For the fiscal year ended April 30, 2009, distributions paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2009 Form 1099-DIV. For the taxable year or period ended April 30, 2009, the percentages of Qualified Dividend Income are as follows:
QUALIFIED DIVIDEND INCOME ------------------ Large Cap Enhanced Index Fund .................... 100% Small-Mid Cap Enhanced Index Fund ................ 100% International Enhanced Index Fund ................ 100% Global Equity Income Fund ........................ 98%
PROXY VOTING POLICY AND VOTING RECORDS A description of the policies and procedures that the Steward Funds use to determine how to vote proxies and information regarding how each Fund voted proxies during the most recent 12 month-period ended June 30, is available without charge, (i) by calling 1-800-262-6631, or (ii) on the Securities and Exchange Commission's website at http://www.sec.gov. AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE The Steward Funds file a complete Schedule of Portfolio Investments with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q no later than 60 days following the close of the quarter. Forms N-Q are available without charge on the SEC's website at http://www.sec.gov. The Steward Funds' Form N-Q may be reviewed, or, for a fee, may be copied at the SEC's Public Reference Room in Washington, D.C. Information about the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 67 ================================================================================ BOARD CONSIDERATION OF ADVISORY CONTRACT RENEWAL (UNAUDITED) - -------------------------------------------------------------------------------- At its meeting held February 17, 2009, the Board of Directors ("Board") of Steward Funds, Inc. and Capstone Series Fund, Inc. conducted its regular annual review of the investment advisory contracts between Capstone Asset Management Company ("CAMCO") and each of the series (each, a "Fund") of Steward Funds, Inc. and Capstone Series Fund, Inc. No changes were proposed to any of the contracts and the continuation of each contract was approved unanimously by the full Board and by the independent directors. To assist the independent directors in their deliberations at the meeting, Mr. Edward Jaroski, President of CAMCO and of the Funds, reviewed information that had been distributed to the Board in advance, in response to a request for information from Fund counsel. He also reviewed the business activities of CAMCO during the previous year, including the recent acquisition of two new subsidiaries - Capstone Financial Solutions, LLC (an investment adviser registered with the U.S. Securities and Exchange Commission) and CFS Consulting Services, LLC ("CFS Consulting," an investment research screening firm). As the independent directors were aware, CFS Consulting had previously been providing screening services to the Funds to assure their compliance with their cultural values investment policies. Mr. Jaroski stated that, as a Capstone subsidiary, CFS Consulting would continue to provide these services to the Funds, with no change in fees. With respect to future plans, he noted that Capstone was adding additional office space and was considering the possible acquisition of another small investment advisory firm and that he would keep the Board informed of developments. Mr. Jaroski also reviewed the effects of the recent securities market downturn on the Funds, noting that Fund asset values had declined but had dropped less than the market generally. He noted that continuing sales had offset redemptions during much of the period, although conditions were more flat recently. He also stated that private account growth for CAMCO and its affiliates had also been generally positive and that recent changes in the brokerage industry had resulted in new account relationships. To address the current environment, he noted that, although CAMCO was not reducing staff, it had made salary adjustments to reflect the market downturn. Mr. Richard Nunn, senior vice president and chief compliance officer of CAMCO and the Funds, then reviewed CAMCO's profitability analysis with the Board, noting the impact of the recent acquisitions. Following this discussion, the CAMCO personnel left the room and the independent directors continued their deliberations with Fund counsel. Counsel reviewed with the independent directors their legal responsibilities in reviewing investment advisory contracts for the Funds and the factors they should consider in their review. It was noted that, as part of the review, the independent directors would also consider each Fund's administrative services arrangements, which, in the case of Steward Small-Mid Cap Enhanced Index Fund, are contained in the investment advisory contract. The independent directors discussed the information they had received and reviewed prior to the meeting, as well as the matters discussed by Messrs. Jaroski and Nunn at the meeting. They discussed the nature and quality of CAMCO's services to the Funds and the Funds' performance, noting in particular that the Funds' assets were holding up reasonably well under very difficult market conditions and that the Funds' performance relative to their benchmarks had been satisfactory. They considered information concerning CAMCO's profitability and general viability going forward and determined that CAMCO appeared to be reasonably well positioned to operate satisfactorily during the current environment. The independent directors reviewed the various sources of fees and ancillary benefits to CAMCO due to its relationships with the Funds, including advisory and administration fees. They also reviewed fees paid to CAMCO's affiliate, Capstone Asset Planning Company, pursuant to the Funds' Service and Distribution Plan. These fees were reviewed quarterly by the independent directors and the Plans and fees were reviewed annually and determined to be fair and reasonable both as a separate matter and relative to the profitability of CAMCO and its affiliates from their relationships to the Funds. The independent directors also noted that CFS Consulting was now a subsidiary of CAMCO's parent, Capstone Financial Services, Inc. ("CFS"), so that the Funds' fees for portfolio screening services were being paid to an affiliate of CAMCO. They noted, however, that these fees to CFS Consulting had originally been the result of arms' length negotiations and were not being changed following the acquisition of CFS Consulting by Capstone. Although the independent directors would continue to review the contribution of these fees to the overall profitability of the Capstone entities, it did not appear that these fees were unreasonable. They also noted that fees paid to CAPCO under the Funds' Administrative Services Plan were all paid out to third parties and none were retained by CAPCO. Finally, they considered the benefits received by CAMCO pursuant to "soft dollar" arrangements based on Fund brokerage. These arrangements were reviewed regularly by the Board and were determined to be reasonable and fair to the Funds. With respect to each Fund's investment advisory fees and fees for administrative services, the independent directors reviewed information concerning fees paid by other investment companies deemed comparable and determined that the Funds' fees were reasonable relative to those paid by other funds. They noted that the Fund's advisory and administration fees contained breakpoints designed to give the Funds advantages of potential economies of scale at higher asset levels and that fees for administrative services were assessed on the aggregate assets of the Funds, providing further benefits from economies of scale. In making their determinations regarding the reasonableness of the Funds' advisory and administration fees, the independent directors also had access to information concerning CAMCO's fees to its other advisory clients. The independent directors considered the Funds' expense 68 ratios and determined them to be within satisfactory limits. The independent directors particularly considered CAMCO's overall performance of its services to the Funds under recent difficult market conditions, noting that the Funds' performance relative to their respective benchmarks had been satisfactory, that Fund expenses were being well-controlled, that issues posed by recent market conditions were being addressed responsibly and that the independent directors were being kept appropriately informed. The independent directors also particularly noted that the overall health of CAMCO and the other Capstone entities did not appear to be jeopardized. Following further discussion, the independent directors determined to recommend to the full Board that each of the Funds' investment advisory agreements be continued for an additional year. The Funds' administration agreements were also unanimously approved for continuation. Each of these decisions was also unanimously approved by the full Board. 69 ================================================================================ EXPENSE EXAMPLES (UNAUDITED) - -------------------------------------------------------------------------------- As a shareholder of the Steward Funds, you may incur fees for certain transactions and fees if your account is under $200, (small account fees). You will also incur ongoing costs, including management fees; Service and Distribution Plan and Administrative Services Plan Fees (for Individual Class); and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Steward Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2008 through April 30, 2009. ACTUAL EXPENSES The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD 11/1/08 4/30/09 11/1/08 - 4/30/09 11/1/08 - 4/30/09 ------------- ------------- ----------------- ----------------- Steward Large Cap Enhanced Index Fund Individual Class ................................... $1,000.00 $ 943.80 $4.53 0.94% Institutional Class ................................ 1,000.00 944.70 2.84 0.59% Steward Small-Mid Cap Enhanced Equity Index Fund Individual Class ................................... 1,000.00 989.90 5.28 1.07% Institutional Class ................................ 1,000.00 991.30 4.00 0.81% Steward International Enhanced Index Fund Individual Class ................................... 1,000.00 991.90 5.43 1.10% Institutional Class ................................ 1,000.00 993.30 3.95 0.80% Steward Select Bond Fund Individual Class ................................... 1,000.00 1,050.00 4.68 0.92% Institutional Class ................................ 1,000.00 1,051.30 3.20 0.63% Steward Global Equity Income Fund Individual Class ................................... 1,000.00 911.30 5.50 1.16% Institutional Class ................................ 1,000.00 913.10 3.61 0.76%
* Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half- year divided by the number of days in the fiscal year. 70 HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The table below provides information about hypothetical account values and hypothetical expenses based on each Steward Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only. The expenses do not include any redemption or small account fees, which Funds, in certain circumstances, may assess. The Funds do not charge transactional costs, such as sales charges (front or back end loads) or exchange fees, although other funds might. Therefore, this table is useful only in comparing ongoing costs and will not help you determine the relative total costs of owning different funds.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD 11/1/08 4/30/09 11/1/08 - 4/30/09 11/1/08 - 4/30/09 ------------- ------------- ----------------- ----------------- Steward Large Cap Enhanced Index Fund Individual Class ................................... $1,000.00 $1,020.13 $4.71 0.94% Institutional Class ................................ 1,000.00 1,021.87 2.96 0.59% Steward Small-Mid Cap Enhanced Equity Index Fund Individual Class ................................... 1,000.00 1,019.49 5.36 1.07% Institutional Class ................................ 1,000.00 1,020.78 4.06 0.81% Steward International Enhanced Index Fund Individual Class ................................... 1,000.00 1,019.34 5.51 1.10% Institutional Class ................................ 1,000.00 1,020.83 4.01 0.80% Steward Select Bond Fund Individual Class ................................... 1,000.00 1,020.23 4.61 0.92% Institutional Class ................................ 1,000.00 1,021.67 3.16 0.63% Steward Global Equity Income Fund Individual Class ................................... 1,000.00 1,019.04 5.81 1.16% Institutional Class ................................ 1,000.00 1,021.03 3.81 0.76%
* Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half- year divided by the number of days in the fiscal year. 71 DIRECTORS AND EXECUTIVE OFFICERS The directors provide overall supervision of the affairs of the Fund. The Fund's directors and executive officers, and their principal occupations for the last five years, are listed below. All persons named as directors also serve in similar capacities for other investment companies administered by the Adviser as indicated below.
NUMBER OF PORTFOLIOS OTHER TERM OF OFFICE AND IN FUND COMPLEX DIRECTORSHIPS/ POSITION(S) LENGTH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, ADDRESS AND AGE HELD WITH FUND SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR - --------------------- -------------- ------------------ ----------------------- -------------------- ---------------- INTERESTED DIRECTOR - ------------------- Edward L. Jaroski* Director, SLCEIF From 2004 President and Director 6 Director and 5847 San Felipe, President & SSMCEIF From 1998 of Capstone Asset finance committee Suite 4100 Chairman of SIEIF From 2006 Management Company, chairman, Theater Houston, TX 77057 the Board SSBF From 2004 Capstone Asset under the Stars Age: 62 SGEIF From 2008 Planning Company and Capstone Financial Services, Inc.; President, CEO and Director of Capstone Financial Solutions, LLC and CFS Consulting Services, LLC. INDEPENDENT DIRECTORS - --------------------- John R. Parker Director SLCEIF From 2004 Self-employed Investor 6 None 541 Shaw Hill SSMCEIF From 1998 Consultant Stowe, VT 05672 SIEIF From 2006 Age: 63 SSBF From 2004 SGEIF From 2008 James F. Leary Director SLCEIF From 2004 Financial Consultant; 6 Director-Highland 15851 N. Dallas Parkway SSMCEIF From 1998 Managing Director of Funds Group; #500 SIEIF From 2006 Benefit Capital Southwest Director-Pacesetter Addison, TX 75001 SSBF From 2004 Capital Group; Age: 79 SGEIF From 2008 Director-Homeowners of America Insurance Company since 2006. Leonard B. Melley, Jr.** Director SLCEIF From 2004 CEO/President of Freedom 6 None 6216 Yadkin Road SSMCEIF From 2003 Stores, Inc. Fayetteville, NC 28303 SIEIF From 2006 Age: 49 SSBF From 2004 SGEIF From 2008 John M. Briggs Director SLCEIF From 2005 CPA, Treasurer, 6 Director-Healthcare 435 Williams Road SSMCEIF From 2005 Philadelphia Affiliate Services Group, Inc. Wynnewood, PA 19096-1632 SIEIF From 2006 of the Susan G. Komen Age: 58 SSBF From 2005 Breast Cancer SGEIF From 2008 Foundation since February, 2005; formerly Partner of Briggs, Bunting & Dougherty, LLP, a registered public accounting firm for more than five years.
72
NUMBER OF PORTFOLIOS OTHER TERM OF OFFICE AND IN FUND COMPLEX DIRECTORSHIPS/ POSITION(S) LENGTH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, ADDRESS AND AGE HELD WITH FUND SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR - --------------------- -------------- ------------------ ----------------------- -------------------- ---------------- EXECUTIVE OFFICERS - ------------------ Dan E. Watson Executive Vice SLCEIF From 2004 Executive Vice N/A None 5847 San Felipe, President SSMCEIF From 1998 President and Suite 4100 SIEIF From 2006 Portfolio Manager of Houston, TX 77057 SSBF From 2004 Capstone Asset Age: 60 SGEIF From 2008 Management Company & Capstone Financial Services, Inc.; Officer of other Capstone Funds Howard S. Potter Sr. Vice SLCEIF From 2004 Executive Vice N/A None 5847 San Felipe, President SSMCEIF From 1998 President and Suite 4100 SIEIF From 2006 Portfolio Manager of Houston, TX 77057 SSBF From 2004 Capstone Asset Age: 57 SGEIF From 2008 Management Company and Capstone Financial Services, Inc.; Officer of other Capstone Funds John R. Wolf Sr. Vice SLCEIF From 2004 Sr. Vice N/A None 5847 San Felipe, President SSMCEIF From 1998 President/Portfolio Suite 4100 SIEIF From 2006 Manager of Capstone Houston, TX 77057 SSBF From 2004 Asset Management Age: 47 SGEIF From 2008 Company; Officer of other Capstone Funds Scott Wynant Sr. Vice SLCEIF From 2008 Sr. Vice President of N/A None 5847 San Felipe, President SSMCEIF From 2008 Capstone Financial Suite 4100 SIEIF From 2008 Solutions, LLC and CFS Houston, TX 77057 SSBF From 2008 Consulting Services, Age: 54 SGEIF From 2008 LLC from November 2008-present; Executive Vice President of AG Financial Wealth Management Solutions, LLC from April 1997-August 2008. Richard A. Nunn Sr. Vice SLCEIF From 2004 Senior Vice President N/A None 5847 San Felipe, President, SSMCEIF From 2004 and Chief Compliance Suite 4100 Secretary, SIEIF From 2006 Officer of Capstone Houston, TX 77057 and Chief SSBF From 2004 Asset Management Age: 63 Compliance SGEIF From 2008 Company; Senior Vice Officer President and Secretary of Capstone Financial Services, Inc.; Senior Vice President and Director of Capstone Asset Planning Company, 2004-2009; Secretary of Capstone Asset Planning Company, 2004-Present; Senior Vice President, CCO and Secretary of Capstone Financial Solutions, LLC from November 2008-present; Secretary of CFS Consulting Services, LLC from November 2008-present; Officer of other Capstone Funds, 2004-present; MGL Consulting Corporation, independent consultants, Vice President Regulatory Affairs, 2000-present
73
NUMBER OF PORTFOLIOS OTHER TERM OF OFFICE AND IN FUND COMPLEX DIRECTORSHIPS/ POSITION(S) LENGTH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY TRUSTEESHIPS NAME, ADDRESS AND AGE HELD WITH FUND SERVED DURING PAST 5 YEARS DIRECTOR HELD BY DIRECTOR - --------------------- -------------- ------------------ ----------------------- -------------------- ---------------- EXECUTIVE OFFICERS - ------------------ Kimberly A. Wallis Asst. Vice SLCEIF From 2004 Asst. Vice President N/A None 5847 San Felipe, President SSMCEIF From 2004 Compliance and Suite 4100 Compliance; SIEIF From 2006 Assistant Secretary of Houston, TX 77057 also, since SSBF From 2004 Capstone Asset Age: 42 August 24, 2006, SGEIF From 2008 Management Company; Asst. Secretary Vice President Compliance, Chief Compliance Officer and Assistant Secretary of Capstone Asset Planning Company, 2004-present; Asst. Vice President Compliance and Asst. Secretary of Capstone Financial Solutions, LLC from November 2008-Present; Assistant Secretary of CFS Consulting Services, LLC from November 2008-Present; Officer of other Capstone Funds, 2004-present. Carla Homer Treasurer and SLCEIF From 2004 Treasurer of Capstone N/A None 5847 San Felipe, Principal SSMCEIF From 2004 Asset Management Suite 4100 Financial SIEIF From 2006 Company, Capstone Houston, TX 77057 Accounting SSBF From 2004 Asset Planning Company Age: 50 Officer SGEIF From 2008 and Capstone Financial Services, Inc.; Treasurer of Capstone Financial Solutions, LLC and CFS Consulting Services, LLC from November 2008-Present; Officer of other Capstone Funds
- ------------------------ * Mr. Jaroski is an "interested person" of the Steward Group of Mutual Funds, as defined in the Investment Company Act of 1940, as amended, because of his position with CAMCO and the Distributor. ** Mr. Melley is married to the sister of Mr. Jaroski's wife. The names of the Funds are abbreviated as follows: Steward Large Cap Enhanced Index Fund (SLCEIF) Steward Small-Mid Cap Enhanced Index Fund (SSMCEIF) Steward International Enhanced Index Fund (SIEIF) Steward Select Bond Fund (SSBF) Steward Global Equity Income Fund (SGEIF) 74 THIS PAGE INTENTIONALLY LEFT BLANK 75 [LOGO OF STEWARD] STEWARD(SM) - ----------------- MUTUAL FUNDS - -------------------------- Visit us online at www.stewardmutualfunds.com - -------------------------- STEWARD FUNDS - -------------------------------------------------------------------------------- MANAGING WEALTH, PROTECTING VALUES STEWARD LARGE CAP ENHANCED INDEX FUND STEWARD SMALL-MID CAP ENHANCED INDEX FUND STEWARD INTERNATIONAL ENHANCED INDEX FUND STEWARD SELECT BOND FUND STEWARD GLOBAL EQUITY INCOME FUND For more complete information about the Steward Funds, including charges and expenses, contact the Distributor to receive a prospectus. Please read it carefully before you invest or send money. Distributed by: Capstone Asset Planning Company 5847 San Felipe, Suite 4100 Houston, Texas 77057 1-800-262-6631 [LOGO OF CAPSTONE ASSET PLANNING COMPANY] info@capstonefinancial.com ITEM 2. CODE OF ETHICS. (a) The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit. (b) During the period covered by the report, with respect to the registrant's code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. 3(a)(1) The registrant's board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee. 3(a)(2) The audit committee financial expert is John M. Briggs, who is "independent" for purposes of this Item 3 of Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
CURRENT YEAR PREVIOUS YEAR ------------ ------------- (a)Audit Fees $57,500 $64,500 ---------- (b)Audit-Related Fees $ 0 $ 0 ------------------ (c)Tax Fees $10,000 $16,000 -------- (d)All Other Fees $ 0 $ 0 --------------
(e)(1) Not applicable. (2) For the fiscal years ended April 30, 2009 and 2009, 100% of all the fees in paragraph (b) through (d) were approved by the Audit Committee. (f) Not applicable. (g) For the fiscal year ended April 30, 2009, Cohen Fund Audit Services, Ltd. billed $0. For the fiscal year ended April 30, 2008, Cohen Fund Audit Services, Ltd. billed $0. (h) Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. INVESTMENTS. (a) Not applicable. (b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED HERETO. (a)(2) CERTIFICATIONS PURSUANT TO RULE 30a-2(a) ARE ATTACHED HERETO. (a)(3) NOT APPLICABLE. (b) CERTIFICATIONS PURSUANT TO RULE 30a-2(b) ARE FURNISHED HEREWITH. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Steward Funds, Inc. -------------------------------------------------------------------- By (Signature and Title) /s/ Edward Jaroski -------------------------------------------------------- Edward Jaroski, President Date 7/9/09 --------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Edward Jaroski -------------------------------------------------------- Edward Jaroski, President Date 7/9/09 --------------------------------------- By (Signature and Title) /s/ Carla Homer -------------------------------------------------------- Carla Homer, Treasurer Date 7/9/09 --------------------------------------- EX-99.CODE ETH 2 e70506_coe.txt CAPSTONE SERIES FUND, INC. STEWARD FUNDS, INC. CAPSTONE CHURCH CAPITAL FUND (each, a "Fund") CAPSTONE ASSET PLANNING COMPANY ("CAPCO") CODE OF ETHICS (Rule 17j-l Policy) Governing Purchase and Sale of Securities by Each Officer, Director, Trustee and Employee STATEMENT OF POLICY - ------------------- CAPCO, its officers, directors and employees, and the officers, directors, trustees and employees of each Fund have an affirmative duty of good faith and full and fair disclosure of all material facts to the Funds and their shareholders ("Shareholders"). This duty is particularly pertinent whenever CAPCO or such persons are in a situation involving a real or potential conflict of interest. CAPCO and all such persons must act, and exercise responsibility, for the benefit of the Funds and their Shareholders and may not participate in activities that may conflict with the interests of the Funds and their Shareholders except in accordance with this Code of Ethics ("Code"). CAPCO and such persons must avoid activities, interests and relationships that might interfere or appear to interfere with making decisions in the best interests of the Funds and their Shareholders. This Code is designed to implement these policies, in accordance with applicable legal requirements. [Note that similar policies and legal requirements are applicable to the Funds' Adviser, Capstone Asset Management Company ("CAMCO"), which has its own separate Code of Ethics. CAMCO's Code of Ethics is subject to the approval requirements of Section VII of this Code.] ACKNOWLEDGEMENT OF RECEIPT - -------------------------- All officers, directors and employees of CAPCO and all officers, directors, trustees and employees of each Fund must receive a copy of this Code and of any amendments to this Code and must acknowledge receipt of the Code and amendments on the form attached as Appendix 1. DEFINITIONS - ----------- Following are definitions of certain terms used in this Code. 1. 1940 Act - Investment Company Act of 1940, as amended. 2. Access Person - ------------- A. as to a Fund, all directors or trustees and officers of a Fund are presumed to be Access Persons of that Fund. B. with respect to CAPCO, any director or officer of CAPCO who in the ordinary course of business makes, participates in or obtains information regarding, the purchase or sale of Covered Securities by a Fund or whose functions or duties in the ordinary course of business relate to the making of any recommendation to a Fund regarding the purchase or sale of Covered Securities. 3. Access Person Account -- a securities account of (a) an Access Person; (b) an immediate family member who shares the Access Person's household; (c) another person who shares the Access Person's household; (d) an account of anyone to whose support the Access Person materially contributes; and (e) any other securities account over which the Access Person exercises a controlling influence. An Access Person Account does not include an account for which an Access Person has a Beneficial Ownership interest but over which the Access Person does not exercise investment discretion or otherwise have any direct or indirect influence or control, provided that the procedures set forth in this Code are followed. 4. Adviser - any entity that serves as investment adviser or sub-adviser to a Fund, provided that the responsibilities of an Adviser or its affiliates (including its Access Persons) in this Code shall be with respect only to the Fund(s) for which such Adviser serves as investment adviser or sub-adviser, and such responsibilities of Capstone Asset Management Company ("CAMCO") shall be covered by CAMCO's Code of Ethics. 5. Advisory Person - includes (a) any natural person in a control relationship to a Fund who obtains information concerning recommendations made to a Fund with regard to the purchase or sale of Covered Securities by a Fund; and (b) any director, officer, general partner or employee of a Fund (or of any company in a control relationship to a Fund) who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding the purchase or sale of Covered Securities by a Fund or whose functions relate to the making of any recommendations with respect to the purchases or sales. 6. Automatic Investment Plan - a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan. 7. Beneficial Ownership - generally means having a direct or indirect pecuniary interest in a security and is legally defined to be beneficial ownership as used in Rule 16a-1(a)(2) under Section 16 of the Securities Act of 1934. Among other things, Beneficial Ownership is presumed regarding securities and accounts held in the name of a spouse or any other family member living in the same household. Beneficial Ownership also extends to transactions by entities over which a person has ownership, voting or investment control, including corporations (and similar entities), trusts and foundations. 8. CAPCO -- Capstone Asset Planning Company 9. Code - this Code of Ethics. 10. Chief Compliance Officer - person or persons designated by a Fund's Board of Directors/Trustees and by CAPCO to fulfill the responsibilities assigned to the Chief Compliance Officer hereunder. 11. Covered Security - any security as defined in Section 2(a)(36) of the 1940 Act (a broad definition that includes any interest or instrument commonly known as a security), but excluding (a) direct obligations of the U.S. Government, (b) bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements, and (c) shares of open-end investment companies (including exchange-traded funds ("ETFs") that are organized as open-end funds). 12. Exempt Securities - (a) direct obligations of the U.S. Government; (b) money market instruments (bankers' acceptances, bank certificates of deposit, commercial paper, repurchase agreements and other high quality short-term debt instruments); (c) money market fund shares; (d) shares of other types of mutual funds (including exchange-traded funds ("ETFs") that are organized as open-end funds), other than shares of a fund for which CAPCO, CAMCO or an affiliate acts as investment adviser or principal underwriter; (e) units of a unit investment trust if the unit investment trust is invested exclusively in mutual funds not affiliated with CAPCO or CAMCO; and (f) large capitalization highly liquid domestic equities as listed quarterly by the Chief Compliance Officer. 13. Fund - any investment company registered under the 1940 Act for which CAMCO or CAPCO acts as investment adviser, administrator or principal underwriter. 14. Independent Director - a director or trustee of a Fund who is not an "interested person" of the Fund (as defined in Section 2(a)(19) of the 1940 Act). 15. Initial Public Offering - an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934. 16. Investment Person (a) any employee of a Fund (or of any company in a control relationship to a Fund) who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by a Fund; or (b) any natural person who controls a Fund and who obtains information concerning recommendations made to a Fund regarding the purchase or sale of securities by the Fund. An Investment Person is an Advisory Person and an Access Person. 17. Limited Offering - an offering that is exempt from registration under the Securities Act of 1933 pursuant to Section 4(2) or Section 4(6) or pursuant to Rule 504, Rule 505, or Rule 506 under that Act. 18. Purchase or Sale of a Covered Security - includes, among other things, the writing of an option to purchase or sell a Covered Security. 19. Security Held or to be Acquired - any Covered Security that, within the most recent 15 days (i) is or has been held by a Fund, (ii) is being considered by a Fund or by its Adviser for purchase by the Fund, or (iii) any option to purchase or sell, and any security convertible into or exchangeable for, one of the foregoing. INSIDER TRADING LAW - --- In the course of business, CAPCO and its employees, as well as directors, trustees, officers and employees of the Funds, may have access to various types of material non-public information. Trading while in possession of material non-public information or communicating such information to others who may trade on such information is a violation of the securities laws. This conduct is frequently referred to as "insider trading" (whether or not one is an "insider"). While the law concerning insider trading is not static, it is generally understood to prohibit: (a) trading by an insider while in possession of material non-public information; in the case of an Adviser, information pertaining to the Adviser's positions or trades for its clients may be material non-public information; (b) trading by a non-insider while in possession of material non-public information, where the information either was disclosed to the non-insider in violation of an insider's duty to keep it confidential or was misappropriated; (c) communicating material non-public information to others; or (d) trading ahead of any reports or recommendations prepared by CAPCO WHO IS AN INSIDER? The concept of "insider" is broad. It includes officers, directors and employees of a company. In addition, a person can be a "temporary insider" if he or she enters into a special confidential relationship in the conduct of a company's affairs and as a result is given access to information solely for the company's purposes. A temporary insider can include, among others, a company's attorneys, accountants, consultants, and banks, and the employees of such organizations. In addition, a person who advises or otherwise performs services for a company may become a temporary insider of that company. An employee of CAPCO could become a temporary insider to a company because of CAPCO's and/or employee's relationship to the company (e.g., by being an analyst who studies the company or an employee who has contact with company executives). A company must expect the outsider to keep the disclosed non-public information confidential and the relationship must at least imply such a duty before the outsider will be considered an insider or temporary insider. In addition, non-employees may come into possession of material non-public information about the Funds' investment activities and be deemed temporary insiders (if they have such information for a limited period), or quasi-insiders (if their access to such information is routine, with access to current information about the Funds' trading and portfolio holdings). WHAT IS MATERIAL INFORMATION? Trading on non-public information is not a basis for liability unless the information is material. "Material information" generally is defined as information for which there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions, or information that is reasonably certain to have a substantial effect on the price of a security. Information that Employees should consider material includes, but is not limited to: dividend changes, earnings estimates, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, liquidation problems, knowledge of an impending default on debt obligations, knowledge of an impending change in debt rating by a statistical rating organization, and significant product or management developments. Material information does not have to relate to the issuer's business. For example, in one case the Supreme Court considered as material certain information about the contents of a forthcoming newspaper column that was expected to affect the market price of a security. In that case, a reporter at The Wall Street Journal was found criminally liable for disclosing to others the date that reports on various companies would appear in The Wall Street Journal and whether those reports would be favorable or not. As indicated, the SEC has stated that information concerning an investment adviser's holdings or transactions may be material non-public information. WHAT IS NON-PUBLIC INFORMATION? Information is non-public until it has been effectively communicated to the marketplace. One must be able to point to some fact to show that the information is generally public. For example, information which would be considered public could include information found in a report filed with the SEC, appearing in Dow Jones, Reuters Economic Services, The Wall Street Journal or other publications of general circulation, or widely available via Internet access. WHAT IS TIPPING? Tipping involves providing material non-public information to anyone who might be expected to trade while in possession of that information. An Employee may become a "tippee" by acquiring material non-public information from a tipper, which would then require the Employee to follow the procedures below for reporting and limiting use of the information. PENALTIES FOR INSIDER TRADING. Penalties for trading on or communicating material non-public information are severe, both for individuals involved in such unlawful conduct and their employers, and may include fines or damages up to three times the amount of any profit gained or loss avoided. A person can be subject to some or all of the applicable penalties even if he or she does not personally benefit from the violation. POLICY - ------ CAPCO forbids any employee to trade, either personally or on behalf of others, while in possession of material non-public information or to communicate material non-public information to others in violation of the law. CAPCO's insider trading prohibitions apply to all employees and extend to activities within and outside their duties as Employees of CAPCO. In addition, it is the policy of CAPCO that all information about the Funds' securities holdings and transactions is to be kept in strict confidence by those who receive it, and such information may be divulged only within CAPCO and to those who have a need for it in connection with the performance of services to the Funds' and their Shareholders.. PROCEDURES - ---------- IDENTIFICATION AND PROTECTION OF INSIDER INFORMATION. If an Employee believes that he or she is in possession of information relative to securities that is material and non-public, or has questions as to whether information is material and non-public, he or she should take the following steps: o Report the matter immediately to the Chief Compliance Officer, who will document the matter. o Refrain from purchasing or selling the securities on behalf of him or herself or others. o Refrain from communicating the information inside or outside CAPCO other than to the Chief Compliance Officer. After reviewing the issue, the Chief Compliance Officer, or his designee, will notify the Employee that (i) trading in the security is restricted; (ii) trading in the security is not restricted; or (iii) such other action will be taken as the Chief Compliance Officer, or his designee, deems appropriate. This may include imposing firewalls or other safeguards to prevent the communication of the material non-public information and permitting trading of such security by Employees other than the Employee in possession of the material non-public information. If an Employee is in possession of material non-public information relative to a security and it is not appropriate to permit continued trading in the security by CAPCO or its Employees, the Chief Compliance Officer, or his designee, will notify all Employees that the security is restricted. All decisions about whether to restrict a security, or remove a security from restriction, will be made by the Chief Compliance Officer or his designee. Restrictions on a security also extend to options, rights and warrants relating to such security. When a security is restricted, all new trading activity of such security shall cease, unless approved in writing by the Chief Compliance Officer or his designee. In addition, Employees are prohibited from communicating the fact that trading is restricted in a particular security to anyone outside CAPCO. A security will be removed from restriction if the Chief Compliance Officer determines that no insider trading issue remains with respect to such security (for example, if the information becomes public or no longer is material). RESTRICTING ACCESS TO MATERIAL NON-PUBLIC INFORMATION. Information in the possession of an Employee that has been identified as material and non-public may not be communicated to anyone, including persons within CAPCO, except as provided above. In addition, care should be taken so that such information is secure. Documents and files that contain material non-public information should be stored in locked file cabinets or other secure locations and access to computer files containing material non-public information should be restricted. Employees may not discuss material non-public information with, or in the presence of, persons who are not affiliated with CAPCO or authorized to receive such information. To this end, Employees should avoid discussions of material non-public information in hallways, elevators, trains, subways, airplanes, restaurants and other public places generally. The use of speaker phones or cellular telephones also should be avoided in circumstances where such information may be overheard by unauthorized persons. ACCOUNT REVIEW TO DETECT INSIDER TRADING. To detect insider trading, the Chief Compliance Officer or his designee, will review the trading activity of the Funds, accounts of Employees and any CAPCO accounts. Such reviews will be documented by the Chief Compliance Officer or his designee, no less frequently than quarterly. The Chief Compliance Officer or his designee will investigate any instance of possible insider trading and fully document the results of any such investigation. At a minimum, an investigation record should include: (i) the name of the security; (ii) the date the investigation commenced; (iii) an identification of the account(s) involved; and (iv) a summary of the investigation's disposition. PERSONAL SECURITIES TRANSACTIONS AND REPORTING REQUIREMENTS Employee investments must be consistent with the mission of CAPCO to always put the interests of the Funds and their Shareholders first and with the requirement that CAPCO and its Employees not trade on the basis of material non-public information concerning the investment decisions for the Funds or the Funds' transactions or holdings. Directors, officers and employees of the Funds should also observe these principles. Note that Independent Directors are exempt from certain of these requirements. See "Special Rules for Independent Directors," below. LAW - --- Rule 17j-l under the 1940 Act makes it unlawful for CAPCO, any director, officer or employee or other affiliated person of a Fund or of CAPCO, in connection with the purchase and sale by such person of a "security held or to be acquired" by a Fund: 1. To employ any device, scheme or artifice to defraud the Fund; 2. To make to the Fund any untrue statement of a material fact or omit to state to the Fund a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading; 3. To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon the Fund; or 4. To engage in any manipulative practice with respect to the Fund. This Code also reflects certain rules of the Financial Industry Regulatory Authority ("FINRA") that are applicable to CAPCO as well as requirements under other federal securities laws, such as rules concerning insider trading. To assure compliance with these restrictions and requirements, each Fund and CAPCO agree to be governed by the provisions contained in this Code and to apply the Code to its officers, directors, trustees and employees, as applicable. SPECIAL RULES FOR INDEPENDENT DIRECTORS - --------------------------------------- Pre-Approval -- The pre-approval requirements of this Code shall not apply to Independent Directors. The primary function of the Independent Directors is to set policy and monitor the management performance of the Funds' officers and employees and the partners and employees of CAMCO involved in the management of the Funds. Although they receive information after the fact as to portfolio transactions by the Funds, Independent Directors are not given advance information as to the Funds' contemplated investment transactions. An Independent Director who wishes to purchase or sell any security will therefore generally not be required to obtain advance approval of his security transactions. If, however, during discussions at Board meetings or otherwise an Independent Director should learn in advance of the Funds' current or contemplated investment transactions, then advance approval of transactions in the securities of such company(ies) shall be required for a period of 30 days from the date of such Board meeting. In addition, an Independent Director can voluntarily obtain advance approval of any security transaction or transactions at any time. Reporting by Independent Directors -- The reporting requirements of this Code shall not apply to an Independent Director unless he knew, or in the ordinary course of fulfilling his official duties as a director or trustee should have known, at the time of his transaction, that during the 15-day period immediately before or after the date of the transaction (i.e., a total of 30 days) by the Independent Director such security was or was to be purchased or sold by any of the Funds or such a purchase or sale was or was to be considered by a Fund. If he makes any transaction requiring such a report, he must report all securities transactions effected during the quarter for his account or for any account in which he has a direct or indirect Beneficial Ownership interest and over which he has any direct or indirect influence or control. POLICY - ------ GENERAL PRINCIPLES. Each Fund and CAPCO shall be governed by the following principles and shall apply them to its Access Persons. 1. No Access Person shall engage in any act, practice or course of conduct that would violate the provisions of Rule 17j-l set forth above. 2. The interests of the Funds and their shareholders are paramount and come before the interests of any Access Person or employee. 3. Personal investing activities of all Access Persons and employees shall be conducted in a manner that avoids actual or potential conflicts of interest with the Funds and their shareholders. 4. Access Persons shall not use their positions, or any investment opportunities presented because they hold those positions, to the detriment of the Funds and their shareholders. ACCESS PERSONS. CAPCO and the Funds maintain a designated list of Access Persons which is distributed to the President and CCO each quarter for their review and signature. It is the policy of CAPCO and the Funds that all designated Access Persons must file all required initial and annual holding reports and quarterly reports of transactions in Access Person Accounts. MAINTAINING ACCESS PERSON ACCOUNTS. All Access Persons must obtain prior approval before opening an Access Person Account. In addition, all Access Persons are required to provide to the Chief Compliance Officer duplicate account statements and trade confirmations for all Access Person Accounts. PRE-CLEARANCE. (a) PARTICIPATION IN INITIAL PUBLIC OFFERINGS AND LIMITED OFFERINGS. It is the policy of CAPCO and the Funds that an Access Person may acquire direct or indirect ownership of securities in an initial public offering or in a limited offering only if advance approval is obtained from the Chief Compliance Officer or his designee. Note that there are no exceptions to the pre-clearance requirement for IPO's and limited offerings. (b) OTHER SECURITIES TRANSACTIONS. Transactions in securities other than initial public offerings and private placements by Access Persons are subject to pre-clearance by the Chief Compliance Officer or his designee (see "Procedures" section, below), except for transactions in Exempt Securities. Generally, a transaction in a security in an Access Person Account will be prohibited if a Fund is considering investing, has an outstanding order for or has within 24 hours executed a Firm Trade in that security. A "Firm Trade" means a transaction in a security by the Adviser on behalf of the interest of the Funds for the Funds' Shareholders. PROHIBITED TRANSACTIONS. No Access Person may trade in any Access Person account in any security subject to a restriction on trading issued by the Chief Compliance Officer, or his designee, under the insider trading policies and procedures set forth in this Code. PROCEDURES - ---------- ACCESS PERSON ACCOUNTS - ---------------------- OPENING AN ACCESS PERSON ACCOUNT. Prior to opening any Access Person Account, including an account in which only Exempt Securities are traded, an Access Person must provide written notice to the Chief Compliance Officer, or his designee, who must approve the opening of the account. DUPLICATE STATEMENTS AND CONFIRMATIONS. For any Access Person Account opened or maintained at a broker-dealer, bank or similar financial institution, each Access Person shall be responsible for providing account statements and confirmations to Compliance Department. Duplicate account statement and trade confirmations sent directly by a broker-dealer should be sent to the following address: CAPSTONE ASSET PLANNING COMPANY Attn: Compliance Department 5847 San Felipe Suite 4100 Houston, Texas 77057 Such statements must be provided on issuance for Access Person Accounts, and all such statements must be received no later than 30 days after the end of each calendar quarter, except for accounts in which the Access Person transacts only in Exempt Securities. Duplicate confirmations must be provided upon issuance. REPORTING REQUIREMENTS - ---------------------- HOLDINGS AND TRANSACTION REPORTING REQUIREMENTS. All Access Persons must file initial and annual holdings reports and quarterly transaction reports with respect to their securities holdings and transactions in Covered Securities in which beneficial ownership is held or acquired by the Access Person, except holdings in an account over which the Access Person has no direct or indirect influence or control. Additionally, transactions pursuant to an Automatic Investment Plan need not be included in the transaction reports. Access Persons who file reports under CAMCO's Code of Ethics need not file information under this Code that would duplicate information provided under the CAMCO Code. This reporting requirement applies to any securities received through gift, inheritance or other non-volitional means and any transactions effected pursuant to an automatic investment plan. INITIAL HOLDINGS REPORT. Within 10 days of commencement of employment by CAPCO or a Fund, or otherwise becoming an Access Person, each Access Person shall file with the Chief Compliance Officer an Initial or Annual Holdings Report on the form attached as Appendix 2 or a substitute acceptable to the Chief Compliance Officer. The report shall include information on all Covered Securities beneficially owned by the Access Person except holdings in an account over which the Access Person has no direct or indirect influence or control. The information in the report must be current as of a date no more than 45 days prior to the date the person becomes an Access Person. The report shall include: (a) the title, number of shares and principal amount of each Covered Security in which the Access Person had any Beneficial Ownership interest as of the date the person became an Access Person; (b) the name of any broker, dealer or bank with whom the Access Person maintained an account in which any securities were held for the direct or indirect benefit of the Access Person as of the date the person became an Access Person; and (c) the date the report is submitted by the Access Person. ANNUAL HOLDINGS REPORT. Each Access Person must file annually an Initial and Annual Holdings Report on the form attached as Appendix 2 or a substitute acceptable to the Chief Compliance Officer. The information in the report shall be current as of a date no more than 45 days before the report is submitted. The information in the reports shall be as of December 31 and shall be filed during the month of January. The report shall include: (a) the title, number of shares and principal amount of each Covered Security in which the Access Person had any Beneficial Ownership interest as of December 31; (b) the name of any broker, dealer or bank with whom the Access Person maintains an account in which any securities are held for the direct or indirect benefit of the Access Person; and (c) the date the report is submitted by the Access Person. QUARTERLY TRANSACTIONS REPORT. Each Access Person shall file with the Chief Compliance Officer a Quarterly Personal Securities Transaction Report in the form attached as Appendix 3 (or a substitute acceptable to the Chief Compliance Officer) within 30 days of the end of each calendar quarter. Such report need not include information contained in brokerage reports sent directly to the Chief Compliance Officer. (See "Procedures," below.) The report need not include information regarding transactions in any account over which the Access Person has no direct or indirect influence or control. The report also need not include information regarding transactions effected pursuant to an Automatic Investment Plan. The report must include the name of the security, date of the transaction, CUSIP or ticker number, interest rate and maturity date, number of shares or principal amount, price, nature of the transaction and name of the bank, broker-dealer or financial institution through which the transaction was effected. The date of submission of the report must also be included. Information regarding such transactions need not be reported if duplicate statements and confirmations for all Access Person Accounts have been provided to the Chief Compliance Officer or his designee. Even if no transactions are required to be reported, each Access Person must submit such a report certifying that all transactions have been reported. Access Persons must independently report securities that do not appear on the confirmations or account statements (e.g., securities acquired in a private placement or by gift or inheritance) on the Quarterly Securities Transaction Report form provided. PRECLEARANCE - ------------ Any Access Person who wishes to effect a transaction in securities, including any private placement, initial public offering or limited offering (including those in an Exempt Security) must first obtain written pre-clearance of the transaction from the Compliance Department. Pre-clearance is not required for transactions in Exempt Securities except as noted in the preceding sentence. (See Appendix 4.) Prior to the placement of any order, the Access Person must submit to the Compliance Department a Pre-Approval Trading Form for Access Person Accounts (see Appendix 4), including a copy of the applicable offering documents in the case of a private placement. A Compliance Officer will review prior and proposed trading activity to determine whether to approve the trade request. The Compliance Officer will indicate on the form whether or not the trade is approved and the time period that is covered by any such approval. Failure to obtain any required Pre-Clearance of Personal Securities Transactions is a violation of this Code and will result in sanctions (see "Sanctions," below). Unless the Compliance Department has approved the proposed transaction, the Access Person may not trade in that security. If approval for a proposed transaction is granted, it will be effective for the period noted on the form. If the transaction is not effected as approved, the Access Person must again seek approval for the transaction. FIRM TRADES EFFECTED AFTER ACCESS PERSON TRADES. A Compliance Officer reviews Firm trading activity quarterly to determine whether any Firm trades have been effected within 24 hours after an approved trade for an Access Person Account. If a Firm trade occurred within such 24 hour period, the Chief Compliance Officer or his designee will discuss the original trade with the Access Person and determine whether the trading activity was appropriate. The Chief Compliance Officer may require the Access Person to take such action as the Chief Compliance Officer deems necessary in connection with such trade, including but not limited to, requiring that the Access Person break or reverse his or her trade. The Chief Compliance Officer will document any investigation into such trading activity. REVIEW AND AVAILABILITY OF PERSONAL TRADE INFORMATION. All information supplied under these procedures, including quarterly transaction and initial and annual holdings reports, is reviewed by the Chief Compliance Officer or his designee for compliance with the policies and procedures in this Code of Ethics. Such Compliance Officer will review all account statements within 60 days after the end of the quarter to which they apply and will review confirmations promptly upon receipt. In undertaking such review, such Compliance Officer shall: o address whether the Access Person received pre-approval for all trades; o address whether the Access Person complied with all other applicable internal procedures; o compare Access Person transactions to any restrictions in effect at the time of the trade; o and periodically analyze the Access Person's trading for patterns that may indicate abuse. The Chief Compliance Officer or his designee will document such reviews by initialing Access Person statements or otherwise indicating the statements that have been reviewed and will maintain copies of the Access Person reports and account statements received. SANCTIONS Code Violations and Sanctions Any potential violation of the provisions of the Code or related policies will be investigated by the CAPCO/CAMCO Compliance Department, or, if necessary, the CAPCO and/or Fund Board of Directors or Trustees and/or outside legal counsel. If a determination is made that a violation has occurred, a sanction may be imposed. Sanctions may include, but are not limited to one or more of the following: a warning letter, fine, profit surrender, personal trading ban, termination of employment or referral to civil or criminal authorities. Material violations will be reported promptly to the President and/or the Board of Directors for CAPCO and to the Chief Compliance Officer of any investment company for which CAMCO or an affiliate acts as an investment advisor or for which CAPCO or an affiliate acts as principal underwriter. The Chief Compliance Officer will also comply with the reporting requirements of this Code. Pre-Clearance Violations 5. If during a 12 month period a CAPCO Access Person fails to comply with the provisions of Pre-Clearance of Personal Securities Transactions, the following sanctions will be imposed: 1st Violation - Verbal Violation Warning 2nd Violation - Written Violation Warning 3rd Violation - $250.00 fine plus any profits obtained from the violation. 4th Violation - $500.00 fine plus any profits obtained from the violation. 5th Violation - Possible termination from employment CONFIDENTIALITY. The Chief Compliance Officer or his designee will maintain records in a manner to safeguard their confidentiality. Each Access Person's records will be accessible only to the Access Person, the Compliance Department, senior officers and appropriate human resources personnel. GIFTS, ENTERTAINMENT AND CONTRIBUTIONS LAW - --- The giving or receiving of gifts or other items of value to or from persons doing business or seeking to do business with CAPCO or with whom CAPCO is seeking to do business could call into question the independence of its judgment in connection with entities for whom it acts as distributor and with whom it does business, and could result in violation of numerous federal and state civil and criminal laws. o The acceptance or offering of gifts by an Employee may create a conflict of interest between CAPCO as distributor of the Funds and the Shareholders to whom a fiduciary duty is owed. o ERISA prohibits the offering or acceptance of fees, kickbacks, gifts, loans, money, and anything of value that are given with the intent of influencing decision-making with respect to any employee benefit plan. The acceptance or offering of gifts, entertainment, favors, or other items of value may be viewed as influencing decision-making and therefore unlawful under ERISA. o Many public employee benefit plans have codes of ethics prohibiting fiduciaries from accepting gifts and entertainment outside minimal limits. Many corporate employee benefit plan fiduciaries are subject to similar requirements imposed by plan sponsors. The provision of gifts or entertainment to plan fiduciaries could cause them to be in breach of their obligations under plan documents, as well as federal and state laws. o Other federal laws and regulations prohibit firms and their employees from giving anything of value to employees of various financial institutions in connection with attempts to obtain any business transaction with the institution, which is viewed as a form of bribery. Providing gifts and entertainment to foreign officials may violate the Foreign Corrupt Practices Act. POLICY - ------ DEFINITIONS. "Gifts" include, but are not limited to, theater tickets or tickets to sporting events, registration fees for outings or golf tournaments, vacations, payment of travel, other expenses for outings or events or for conferences or seminars where the giver and recipient do not attend the event together, cash, flowers, candy, wine or liquor, promotional items and any other item of value. "Entertainment" includes, but is not limited to, theater or sporting events, restaurant meals, outings, golf tournaments, vacations, conferences or seminars without a clear business purpose and any other occasion or event at which the giver accompanies the recipient. "Employee" is a CAPCO employee. "Client" is an entity for which CAPCO provides professional services and includes persons associated with such entity. GENERAL POLICY. The level and frequency of gifts and entertainment that may be deemed to rise to a violation of law is a matter of judgment, and perceptions may differ. In general, Employees should never offer gifts or entertainment, or offer favors or other things of value if the acceptance of such items could impair the ability of a representative of a Client or prospective Client to carry out his or her fiduciary duties. Employees should never accept gifts or entertainment, or favors or other things of value that could impair their ability to make decisions consistent with CAPCO's fiduciary duty to its Clients and the Employee's duty to CAPCO. This Policy requires that gifts and entertainment offered, provided or received by an employee be for an appropriate business purpose and either be within certain dollar limits as prescribed herein, or approved in writing by the President or Chief Compliance Officer, or his designee. ACCEPTING GIFTS AND ENTERTAINMENT. Extraordinary or extravagant gifts must be declined or returned, unless approval is given by the President or Chief Compliance Officer. Gifts of nominal value (i.e., gifts that have an aggregate value of no more than $100 annually from a single giver) and entertainment at which both the Employee and the giver are present may be accepted subject to the guidelines set forth below. Gifts should be sent to Employees at CAPCO's offices and should not be sent to an Employee's home. If an Employee receives a gift at home, the Employee should discourage this practice in the future. Gifts received in excess of the $100 limit should be returned to the giver with an explanation of CAPCO's policy or, with the direct approval of the President or Chief Compliance Officer, donated to an appropriate charity. All gifts and entertainment that an Employee receives must be reported in accordance with the procedures below. GIVING GIFTS AND PROVIDING ENTERTAINMENT. Employees may not give any gift(s) with an aggregate value in excess of $100 per year to Client or prospective Client, or to any person associated with a securities or financial organization, any other investment management firm, or members of the news media. Employees may provide reasonable entertainment to such persons provided that both the Employee and the recipient are present, there is a business purpose for the entertainment and the entertainment is within the guidelines set forth below. SOLICITATION OF GIFTS. All solicitation of gifts or gratuities from a Client or prospective Client is prohibited. GIFT AND ENTERTAINMENT GUIDELINES. The following guidelines apply to specific types of gifts and entertainment. Cash. No Employee may give or accept cash gifts or cash equivalents. Reimbursement of Expenses. All travel and entertainment expenses that are eligible for reimbursement must have a legitimate business purpose and be appropriately documented. Meals. Business meals are permitted as long as they are not excessive in number or cost. Business dinners generally should not exceed $100 per person. Cultural, Sporting and Other Events. Entertainment is permitted where (i) the face value of the ticket price does not exceed $100 and (ii) both the giver and the recipient attend the event. If the ticket price exceeds $100, prior approval from the President or the Chief Compliance Officer is required. Sponsorship of any part of a cultural, sporting, or similar event must be approved in advance by the Department Head and the President. Travel and Lodging Expenses It is normally expected that travel and lodging expenses will be paid by the Employer. Travel and lodging expenses paid by the Employee for a Client or prospective Client must be approved in advance by the Department Head, the President or the Chief Compliance Officer. Car Expenses. Employees may not accept or offer limousine service, car service, or car rental, except between a permitted business or entertainment event and one's home, office or other meeting place. Employees may not accept or offer limousine service or car rental for extended use. CLIENT COMPLAINTS. Employees may not make any payments or other account adjustments to Clients in order to resolve any type of complaint. All such matters must be handled by the Chief Compliance Officer. ERISA CONSIDERATIONS. Entertainment of ERISA or public plan trustees may be permissible if there is a business purpose for the entertainment (e.g., review of account performance), but any such entertainment must be consistent with any Code of Conduct of the plan. PROCEDURES - ---------- PROHIBITED GIFTS AND ENTERTAINMENT. If an Employee has been offered a gift or has been invited to participate in an event that is outside the guidelines set forth above, the Employee must seek in writing the approval of the President or the Chief Compliance Officer in order to accept or retain such gift or entertainment. If an Employee wishes to provide any gift or entertainment that is outside the guidelines set forth above, the Employee must seek in writing the approval of the President or the Chief Compliance Officer prior to providing such gift or entertainment. REPORTING OF GIFTS AND ENTERTAINMENT. Each Employee on a quarterly basis must complete a Gift & Entertainment Report (see Appendix 5). Each Employee should disclose all gifts and entertainment given or received for that quarterly reporting period. Employees may not give or receive any gift(s) with an aggregate value in excess of $100 per year to any individual. If an Employee did not give or receive a gift during the reporting period, then the Employee should mark "none" on the Gift and Entertainment Report. The Chief Compliance Officer or his designee will review each report and maintain a record of all reports submitted. REIMBURSEMENT FOR GIFTS OR ENTERTAINMENT PROVIDED. Approval by the Department Head and, the President or the Chief Compliance Officer is a condition to reimbursement for gifts and entertainment in excess of $100 provided by a Registered CAPCO Employee. Any Employee seeking such reimbursement must submit a request in writing containing the name of the recipient of the gift or entertainment, the value of the gift or entertainment, the date on which the gift was made or entertainment took place and the business reason for the gift or entertainment. YEAR END REVIEW. At the end of each calendar year, the Chief Compliance Officer or his designee will review all reports of gifts or entertainment for compliance with the provisions of this Code. POLITICAL CONTRIBUTIONS. All political contributions in excess of $100 must be reported to the Chief Compliance Officer within five business days of being made. Records of such political contributions will be maintained by the Chief Compliance Officer or his designee. The Chief Compliance Officer or his designee will review all reports of political contributions upon receipt to determine compliance with this Manual. OUTSIDE BUSINESS ACTIVITIES LAW - --- CAPCO's fiduciary duties to Clients dictate that CAPCO and its Employees devote their professional attention to Client interests and place those interests above their own and those of other organizations. POLICY - ------ Officers of CAPCO may not engage in any of the following outside business activities without the prior written consent of the President of CAPCO: o Be engaged in any other business; o Be an officer of or employed or compensated by any other person for business-related activities; o Serve as general partner, managing member or in a similar capacity with partnerships, limited liability companies or private funds (other than those managed by CAPCO or its affiliates); o Engage in personal investment transactions to an extent that diverts an Employee's attention from or impairs the performance of his or her duties in relation to the business of CAPCO and its Clients; o Have any direct or indirect financial interest or investment in any dealer, broker, investment firm or other current or prospective supplier of goods or services to CAPCO from which the Employee might benefit or appear to benefit materially; or o Serve on the board of directors (or in any similar capacity) of another company, including not-for-profit corporations. Authorization for board service will normally require that CAPCO not hold or purchase any securities of the company on whose board the Employee sits. Such approval will be conditioned upon the implementation of Chinese Wall procedures to prevent the transmission or provision of material nonpublic information between CAPCO and the company on whose board the Employee sits. PROCEDURES - ---------- APPROVAL. Before undertaking any of the activities listed above, the Employee must provide to the President of CAPCO detailed information regarding all aspects of the proposed activity. The Employee may not undertake such activity until the Employee has obtained written approval from the President of CAPCO. RESTRICTIONS ON ACTIVITIES. With respect to any outside activities engaged in by an Employee, the following restrictions shall be in effect: (i) the Employee is prohibited from implying that he or she is acting on behalf of, or as a representative of, CAPCO; (ii) the Employee is prohibited from using CAPCO's offices, equipment (including telephones and computers), stationery or e-mail accounts for any purpose not directly related to CAPCO business, unless such Employee has obtained prior approval from the President of CAPCO; and (iii) if the activity was required to be and has been approved by the President , the Employee must report any material change with respect to such acts. CONFIDENTIALITY LAW - --- During the course of employment with CAPCO, an Employee may be exposed to or acquire Confidential Information. "Confidential Information" is any and all non-public, confidential or proprietary information in any form concerning CAPCO, its affiliates, their investments and investment strategies, or its Clients or any other information received by CAPCO from a third party to whom CAPCO has an obligation of confidentiality, regardless of when such information was produced or obtained by CAPCO. Confidential Information also includes documentation in any medium or format whatsoever, and all reproductions, copies, notes and excerpts of any documentation comprising or including any Confidential Information, as well as information orally conveyed to the Employee. Confidential Information shall not include (i) any information which the Employee can prove by documentary evidence is generally available to the public or industry other than as a result of a disclosure by the Employee, or (ii) any information that the Employee obtains from a third party who is not subject to a confidentiality agreement with CAPCO and who did not obtain that information directly or indirectly from CAPCO. POLICY - ------ Employees of CAPCO shall not at any time, while employed or at any time after being employed (i) disclose, directly or indirectly, any Confidential Information to anyone other than personnel of CAPCO or (ii) use or appropriate any Confidential Information. In no event may an Employee communicate Confidential Information to any person under circumstances in which it appears likely that such person will misuse the information. PROCEDURES - ---------- RESTRICTIONS ON COMMUNICATIONS OF CONFIDENTIAL INFORMATION. Each Employee agrees to inform the Chief Compliance Officer or his designee promptly if he or she (i) is seeking an exception in order to disclose Confidential Information in contravention of CAPCO's policy, or (ii) discovers that someone else is making or threatening to make unauthorized use or disclosure of Confidential Information. PHYSICAL SECURITY OF INFORMATION. Employees should avoid discussions of Confidential Information in hallways, elevators, trains, subways, airplanes, restaurants and other public places generally. Use of speaker phones or cellular telephones also shall be avoided in circumstances where Confidential Information may be overheard by unauthorized persons. Documents and files that contain Confidential Information must be kept secure in order to minimize possibility that such Confidential Information will be transmitted to an unauthorized person. Confidential documents should be stored in locked file cabinets or other secure locations. Confidential databases and other Confidential Information accessible by computer should be maintained in computer files that are password protected or otherwise secure against access by unauthorized persons. All Employees should lock their computers at the end of each work day. COMPANY PROPERTY. Employees may not physically remove Confidential Information from the premises of CAPCO except as consistent with and in furtherance of the performance of their duties to CAPCO. All originals and copies of Confidential Information are the sole property of CAPCO. Upon the termination of employment for any reason, or upon the request of CAPCO at any time, each Employee promptly will deliver all copies of such materials to CAPCO. REPORTS TO THE BOARD - -------------------- The Chief Compliance Officer of the Funds and the Distributor shall each report in writing to the Board of Directors/Trustees at least annually, and the Funds' Chief Compliance Officer shall require each Adviser to provide a similar report, regarding the following matters not previously reported: o Significant issues arising under their respective codes of ethics, including material violations of the code of ethics; violations that, in the aggregate, are material; and any sanctions imposed; o Significant conflicts of interest involving the personal investment policies of the Funds, an Adviser or Distributor, as applicable, even if they do not involve a violation of the applicable code of ethics; and o The results of monitoring of personal investment activities of Access Persons in accordance with the procedures referred to in this Code. Each such report shall certify that the Funds, their Advisers or the Distributor, as applicable, have adopted procedures reasonably necessary to prevent Access Persons from violating the relevant Code of Ethics. The Chief Compliance Officer shall have discretion to determine that a violation is not material and need not be included in a report to the Board of Directors/Trustees. The Boards of Directors/Trustees shall consider reports made to them hereunder and may impose such sanctions or further sanctions, as it deems appropriate, including, among other things, a letter of sanction or suspension or termination of the employment of the violator. In addition to the annual report, the Chief Compliance Officer shall report to the Board of Directors/Trustees of each Fund promptly, but no later than the next board meeting, regarding serious violations of the Code or an Adviser's code of ethics, of concern to such Fund that are reported to the Chief Compliance Officer. The Boards of Directors/Trustees shall review the Code and its operation at least once a year. RECORDKEEPING - ------------- The Funds and the Distributor shall maintain the following records at their principal offices: 1. The Code and any related procedures and any code that has been in effect during the past five years shall be maintained in an easily accessible place; 2. a copy of each written acknowledgement and assurance obtained from an Access Person in accordance with the requirements of the Code. 3. a record of any violation of the Code and of any action taken as a result of the violation, to be maintained in an easily accessible place for at least five years after the end of the fiscal year in which the violation occurs; 4. a copy of each report under the Code by (or duplicate brokers' advice for the account of) an Access Person, to be maintained for at least five years after the end of the fiscal year in which the report is made, the first two years in an easily accessible place; 5. a record of all persons, currently or within the past five years, who are or were required to make or to review reports under Section V.1, V.2 or V.3, to be maintained in an easily accessible place; 6. a copy of each report under Section VI.1 by the Chief Compliance Officer to the Fund Boards, to be maintained for at least five years after the end of the fiscal year in which it is made, the first two years in an easily accessible place; and 7. a record of any decision, and the reasons supporting the decision, to approve an acquisition by an Access Person of securities offered in an Initial Public Offering or in a Limited Offering, or to approve a securities transaction by an Access Person pursuant to of this Code, to be maintained for at least five years after the end of the fiscal year in which the approval is granted. APPROVAL REQUIREMENTS - --------------------- This Code, and any material changes to this Code, must be approved by the Board of Directors/Trustees of the Funds. The Board of Directors/Trustees of a Fund must also approve the code of ethics of any Adviser ("Adviser Code") and any material changes to such Adviser Code. Each such approval must be based on a determination that the Code or Adviser Code, as applicable, contains provisions reasonably necessary to prevent Access Persons from engaging in any conduct prohibited by Rule 17j-1. Before approving the Code, an Adviser Code or any amendment to the Code or an Adviser Code, the Board of Directors/Trustees must receive a certification from the Funds, the Distributor or the Adviser, as applicable, that it has adopted procedures reasonably necessary to prevent its Access Persons from violating the Code or Adviser Code. Before initially retaining any investment adviser, sub-adviser or principal underwriter, a Fund's Board of Directors/Trustees must approve the code of ethics of the relevant entity, and must approve any material change to that code of ethics within six months after the adoption of the change. EX-99.CERT 3 e70506_ex99.txt CERTIFICATIONS - -------------- I, Edward L. Jaroski, certify that: 1. I have reviewed this report on Form N-CSR of the Steward Funds, Inc. (the "registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 7/9/09 /s/ Edward L. Jaroski - --------------- -------------------------------- Date Edward L. Jaroski President CERTIFICATIONS - -------------- I, Carla Homer, certify that: 1. I have reviewed this report on Form N-CSR of the Steward Funds, Inc. (the "registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 7/9/09 /s/ Carla Homer - --------------- -------------------------------- Date Carla Homer Treasurer EX-99.906 CERT 4 e70506_ex906.txt This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. [SEC] 1350, and accompanies the report on Form N-CSR for the period ended April 30, 2009 of The Steward Funds, Inc. (the "Registrant"). I, Edward L. Jaroski, the Principal Executive Officer of the Registrant, certify that, to the best of my knowledge: 1. The Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. 7/9/09 - -------------------------------- Date /s/ Edward L. Jaroski - -------------------------------- Edward L. Jaroski President This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. [SEC] 1350, and accompanies the report on Form N-CSR for the period ended April 30, 2009 of The Steward Funds, Inc. (the "Registrant"). I, Carla Homer, the Principal Financial Officer of the Registrant, certify that, to the best of my knowledge: 1. The Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. 7/9/09 - ----------------------- Date /s/ Carla Homer - ----------------------- Carla Homer Treasurer This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----