Unpacking the Performance of the Ave Maria Bond Fund: A Q3 2025 Retrospective
Fund Performance Overview: Navigating the Fixed Income Landscape in Q3 2025
For the quarter concluding on September 30, 2025, the Ave Maria Bond Fund (AVEFX) recorded a total return of 1.52%. This result was notably aligned with the Bloomberg Intermediate U.S. Government/Credit Index, which posted a 1.51% return. In comparison, the broader Bloomberg U.S. Aggregate Bond Index achieved a slightly higher return of 2.03% during the same period. The close alignment with a key benchmark indicates a stable, if not aggressively outperforming, quarter for the fund.
Driving Forces: Top-Performing Holdings Boosting Quarterly Returns
Several strategic investments played a significant role in the fund's positive performance. Fastenal Company (FAST), a prominent player in industrial wholesale and rental services, was a primary contributor. Additionally, Genuine Parts Company (GPC), known for its extensive network of auto parts and accessories stores, also provided strong returns. Fidelity National Financial, Inc. (FNF), a leader in title insurance, rounded out the top three contributors, demonstrating the fund's diversified approach across different sectors.
Challenges Encountered: Identifying Underperforming Investments
Despite overall positive returns, certain holdings within the Ave Maria Bond Fund experienced a downturn. Texas Instruments, Inc. (TXN), a major manufacturer of semiconductor devices, faced challenges during the quarter. Similarly, Texas Pacific Land Corporation (TPL), which derives significant royalty income from oil and gas, saw its performance dip. Watsco, Inc. (WSO), a wholesale distributor of HVAC equipment and supplies, also contributed to the list of underperforming assets, indicating areas where the fund's strategy faced headwinds.