<PAGE>
Semi-Annual Report
FOR THE SIX MONTHS ENDED JUNE 30, 1996
MMA Praxis
Mutual Funds
INTERMEDIATE INCOME FUND
GROWTH FUND
[LOGO OF MMA]
<PAGE>
Message
From
The
President
Dear Shareholder:
As of June 30, 1996, the net asset value of the MMA Praxis Growth Fund was
$12.64, and the net asset value of the MMA Praxis Income Fund was $9.71. The
challenges facing the market during the first two quarters are highlighted in
the reports which follow.
STRONG GROWTH IN NUMBER OF SHAREHOLDERS
During the first six months of 1996, we experienced a significant increase in
the number of shareholders in MMA Praxis Mutual Funds. We gained 2,248
shareholders from year-end 1995, bringing the total amount of shareholders to
5,790 as of June 30, 1996. This more than doubles the number of shareholders
from a year ago, when we had 2,639 investors.
With the increase in shareholders, new investment dollars also increased
significantly. During the first six months, $14 million were invested in the
Growth Fund and $3.7 in the Income Fund. Approximately $15 million were
invested in all of 1995. The net assets of the Growth Fund increased to $44.8
million, and the net assets of the Income Fund to $25.3 million.
The growth of the funds is due in part to the popularity of mutual funds and
the record number of dollars that were being invested during the period. Also
contributing to the increase in the popularity of MMA Praxis Funds was our
continual expansion of our distribution system. We now have 26 broker/dealers
who have signed agreements to sell MMA Praxis Mutual Funds. This gives us
opportunity for potential investors in all 50 states and Puerto Rico.
SOCIAL INVESTMENT GUIDELINES ISSUES
In April, we sold our holdings in AMP. This company no longer met our
investment guidelines as a result of AMP's acquisition of MA/COM. With this
acquisition, sales to the United States Department of Defense totalled more
than 5 percent of AMP's total sales, thereby disqualifying them as a holding
in the MMA Praxis Growth Fund.
Several shareholders have raised concerns about securities we hold in
companies that advertise on certain television shows they find offensive.
These concerns give us opportunity to discuss these issues with the companies
involved. We believe we can play a positive role in helping corporations
establish responsible advertising guidelines and have been encouraged by their
efforts to be sensitive to our concerns. We do, however, recognize that this
is a very difficult issue and one in which there is a wide range of opinion.
We will continue to play an active role in the work of the Interfaith Center
on Corporate Responsibility which is at the forefront on advocating for
socially responsible investing. Their experience in this arena has been very
helpful as we seek to address concerns expressed by our shareholders.
We enjoy hearing from you, and welcome your ideas and thoughts. If you have
questions about your investment, or would like to see a prospectus for the
funds, please call 1-800-9-PRAXIS. Be sure to read the prospectus before you
invest.
Sincerely,
MMA PRAXIS MUTUAL FUNDS
/s/ J.B. Miller
J.B. Miller President
-1-
<PAGE>
MMA Praxis Mutual Funds
MMA PRAXIS INTERMEDIATE INCOME FUND
The bond market began to perform poorly in mid-February as interest rates rose
sharply. We were slow to recognize that this was more than a mild bounce up in
rates. As a result, our return was relatively poor. The Intermediate Income
Fund had a return of -2.1 percent at net asset value during the six-month
period. In comparison, the Lehman Corporate Intermediate Index was down -.92
percent while the Lipper Intermediate Investment Grade Fund Average was down -
1.38 percent.*
Intermediate Income Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Lehman Corporate
Date CDSC NO CDSC Intermediate Index
<S> <C> <C> <C>
01/04/94 $10,000 $10,000 $10,000
12/31/94 $ 9,225 $ 9,591 $ 9,734
12/31/95 $10,867 $11,267 $11,582
06/30/96 $10,741 $11,032 $11,477
</TABLE>
<TABLE>
<CAPTION>
Average Anual Total Return*
Since Inception
Date 1 Year (1/4/94)
<S> <C> <C>
06/30/96 -0.64% 2.91%
</TABLE>
- ------- CDSC
- - - - - NO CDSC
....... Lehman Corporate
Intermediate Index
* Reflects Applicable Deferred Sales Charge
* CDSC reflects a 4.00 percent contingent deferred sales
charge. The Lehman Corporate Intermediate Index is an
unmanaged index, generally representative of the
intermediate corporate bond market. This index is for
illustrative purposes only and does not reflect the
deduction of expenses associated with a mutual fund, such
as investment management and fund accounting fees. The
fund's performance reflects the deduction of these value-
added services. The Lipper Intermediate Investment Grade
Debt Average is a composite of all the intermediate
investment grade corporate bond funds tracked by Lipper
Analytical Services, Inc. Past performance is no guarantee
of future results.
We had expected rates to rise, but not as soon as they actually did. We made
an adjustment, but by that time, we were lagging. Our duration was reduced to
4.0. This means a 1 percent change in rates should cause the Intermediate
Income Fund to fluctuate by 4 percent in value.
We are continuing to focus on high-quality securities. Our average bond
quality is a high Aa3.
We have made a number of changes in our strategy to try to prevent this kind
of poor relative performance by limiting our relative exposure to adverse
trends. First, we will use more government agencies to allow us to quickly and
easily shift the structure of our portfolio. Second, we will watch the
technical aspects of the market more closely to try to catch trend changes
more quickly. And third, we will watch the shape of the yield curve more
closely for potentially significant changes.
Our view of the market is that interest rates are at attractive levels.
However, until there is more evidence that the spurt in the rate of economic
growth will slow, we do not expect rates to drop. In fact, the Fed may raise
rates moderately. We are attempting to be as flexible as possible to take
advantage of the trend that emerges. We see several potential risks in 1997
which could move rates higher and will keep us cautious for some time.
Del King, Investment Manager MMA Praxis Intermediate Income Fund
-2-
<PAGE>
MMA Praxis Mutual Funds
MMA PRAXIS GROWTH FUND
The second quarter of 1996 was another good one for stocks. The Standard &
Poor 500 was up 4.5 percent, while MMA Praxis Growth Fund was up 2.7 percent
for the quarter and 4.9 percent year-to-date at net asset value.
Growth Fund
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Date CDSC NO CDSC S & P 500 Domini 400
<S> <C> <C> <C> <C>
01/04/94 $10,000 $10,000 $10,000 $10,000
12/31/94 $ 9,637 $10,026 $10,131 $10,018
12/31/95 $12,967 $13,367 $13,938 $13,845
06/30/96 $13,725 $14,025 $15,345 $15,220
</TABLE>
<TABLE>
<CAPTION>
Average Anual Total Return*
Since Inception
Date 1 Year (1/4/94)
<S> <C> <C>
6/30/96 13.18% 13.57%
</TABLE>
- ------- CDSC
- - - - - NO CDSC
....... S&P 400
_______ Domini 400
* Reflects Applicable Deferred Sales Charge
* Past performance is not indicative of future results. CDSC
reflects a 4.00 percent contingent deferred sales charge.
The S&P 500 Index and the Domini 400 Social Index are
unmanaged indexes, generally representative of the stock
market and the socially responsible investment market,
respectively. These indexes are for illustrative purposes
only and does not reflect the deduction of expenses
associated with a mutual fund, such as investment
management and fund accounting fees. The fund's
performance reflects the deduction of these value-added
services.
DEFENSIVE PORTFOLIO
For most of 1996, we have been managing the Growth Fund with a defensive
portfolio structure in anticipation of a correction in the magnitude of 7 to
10 percent. By managing defensively, we mean we are using cash in the fund as
a hedge while making defensive stock selections. The stocks most likely to
hold their prices during a declining stock market are normally financial
stocks such as banks and insurance companies, utility companies, and oil and
natural gas companies. Our weightings in each of these sectors are greater
than or equal to the market. During the first six months of 1996, our stocks,
in areas such as Technology underperformed, because these stocks are not
considered defensive stocks. Unfortunately, when the market is doing well,
defensive stocks underperform.
NEW HOLDINGS
During the last quarter, we bought and sold a number of stocks. We started new
positions in Albertsons, a West Coast grocery store chain; Allstate, a
property and casualty insurance company; Sonoco Products, a packaging company;
and Eli Lilly, a pharmaceutical company. We expect these companies to provide
a relatively steady earnings revenue growth stream for the next several years.
We also expect the companies to provide some of the defensive characteristics
we are looking for.
We sold our position in Bob Evans Farms due to the higher grain prices which
places pressure on operating margins. In addition, the restaurant growth rate
is less than what we had expected. We also sold our holdings in Darden
Restaurants due to the slower than expected growth rates in their Red Lobster
and Olive Garden chains. As has already been mentioned in the president's
report, we sold our holdings in AMP because the company now longer fell within
our socially responsible guidelines. We also cut back on our technology-
related holdings in anticipation of market slow-down by selling Best Buy and
Read-Rite.
-3-
<PAGE>
MMA Praxis Mutual Funds
MMA PRAXIS GROWTH FUND (CONTINUED)
The Growth Fund is a well-diversified stock fund made up of 50 companies
mostly considered to be of medium to large capitalization in size. Currently,
the five largest holdings in the fund are Hewlett Packard Co. at 3.13 percent,
Johnson & Johnson at 3.07 percent, Merck at 3.05 percent, Intel at 2.80
percent, and Albertsons at 2.79 percent.*
OUTLOOK
Based on events that occured in July, and the performance of our portfolios
has been working according to our strategy. Both the Standard & Poor 500 and
the Dow Jones Industrial Average hit record highs on May 23, 1996. These
indices have since declined by greater than 10 percent from the highs when
considering a huge interday selloff in the stock market on July 16. At one
point during that day, the Dow Jones fell by 166 points or 3.1 percent before
large computer-driven buy orders took the market back up, ending the day with
a small gain. This type of market volatility has not taken place for a number
of years. It often comes late in a stock market cycle prior to the onset of a
bear market.
The economy is now growing at a healthy pace, inflation is under control, and
corporate earnings are positive. This type of scenario does not lead to a bear
market in stocks. Last July's brief correction was just that--a correction to
remove some of the speculative fever that has developed over the last 18
months. We believe this is a positive event for stock investing and will give
us opportunities to invest in solid growth companies at more reasonable
values.
Keith Yoder, Investment Manager
MMA Praxis Growth Fund
* Portfolio holdings are subject to change
-4-
<PAGE>
TABLE OF CONTENTS
Statements of Assets and Liabilities
Page 6
Statements of Operations
Page 7
Statements of Changes in Net Assets
Page 8
Schedules of Portfolio Investments
Page 9
Notes to Financial Statements
Page 14
Financial Highlights
Page 18
-5-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
INCOME GROWTH
FUND FUND
------------ -----------
<S> <C> <C>
ASSETS:
Investments, at value (cost $24,713,030 and
$38,914,832, respectively).......................... $24,684,049 $44,542,409
Cash................................................. 232,801 298,283
Interest receivable.................................. 393,195 56,822
Receivable for capital shares issued................. 18,125 27,375
Receivable for investments sold...................... 8,724
Unamortized organization costs....................... 17,107 16,450
Prepaid expenses..................................... 12,383 30,971
----------- -----------
Total Assets....................................... 25,366,384 44,972,310
----------- -----------
LIABILITIES:
Payable for investments purchased.................... 107,610
Accrued expenses and other payables:
Investment advisory fees............................ 326 3,705
Administration fees................................. 1,368 1,813
12b-1 fees.......................................... 1,031 1,611
Legal and audit fees................................ 4,775 11,677
Printing costs...................................... 5,413 8,417
Other............................................... 9,765 13,518
----------- -----------
Total Liabilities.................................. 22,678 148,551
----------- -----------
NET ASSETS:
Capital.............................................. 25,627,888 38,722,783
Undistributed net investment income (loss)........... 41,998 (7,056)
Net unrealized appreciation (depreciation) from
investments......................................... (28,981) 5,627,578
Accumulated undistributed net realized gains (losses)
from investment transactions........................ (297,199) 480,454
----------- -----------
Net Assets......................................... $25,343,706 $44,823,759
=========== ===========
Outstanding units of beneficial interest (shares).... 2,608,877 3,546,356
=========== ===========
Net asset value--offering price per share*........... $9.71 $12.64
=========== ===========
</TABLE>
- -------
* Redemption price per share varies based on length of time shares are held
(Note 4).
See notes to financial statements.
-6-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
INCOME GROWTH
FUND FUND
------------ ----------
<S> <C> <C>
INVESTMENT INCOME:
Interest income....................................... $ 794,138 $ 100,528
Dividend income....................................... 343,458
----------- ----------
Total Income........................................ 794,138 443,986
----------- ----------
EXPENSES:
Investment advisory fees.............................. 60,740 143,910
Administration fees................................... 24,944 29,171
12b-1 fees............................................ 121,479 194,473
Custodian and accounting fees......................... 34,397 25,066
Legal and audit fees.................................. 10,674 16,619
Organization costs.................................... 3,447 3,265
Trustees' fees and expenses........................... 3,663 5,818
Transfer agent fees................................... 23,992 36,198
Registration and filing fees.......................... 13,560 19,016
Printing costs........................................ 6,586 9,660
Other................................................. 5,078 8,106
----------- ----------
Total Expenses before reimbursement from investment
adviser and voluntary reductions................... 308,560 491,302
Reimbursement of expenses from investment adviser... (27,514)
Expenses voluntarily reduced........................ (136,532) (146,937)
Expenses paid by third parties...................... (10,902) (4,649)
----------- ----------
Total Expenses...................................... 133,612 339,716
----------- ----------
Net Investment Income................................. 660,526 104,270
----------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains from investment transactions....... 10,609 285,251
Net change in unrealized appreciation (depreciation)
from investments..................................... (1,157,827) 1,525,724
----------- ----------
Net realized/unrealized gains (losses) from
investments........................................... (1,147,218) 1,810,975
----------- ----------
Change in net assets resulting from operations........ $ (486,692) $1,915,245
=========== ==========
</TABLE>
See notes to financial statements.
-7-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE INCOME FUND GROWTH FUND
-------------------------- ------------------------
YEAR
SIX MONTHS YEAR SIX MONTHS ENDED
ENDED ENDED ENDED DECEMBER
JUNE 30, DECEMBER 31, JUNE 30, 31,
1996 1995 1996 1995
------------- ------------ ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income... $ 660,526 $ 1,183,642 $ 104,270 $ 223,110
Net realized gains
(losses) from invest-
ment transactions...... 10,609 (292,038) 285,251 1,898,742
Net change in unrealized
appreciation
(depreciation) from in-
vestments.............. (1,157,827) 2,531,766 1,525,724 4,789,928
------------ ------------ ----------- -----------
Change in net assets re-
sulting from operations. (486,692) 3,423,370 1,915,245 6,911,780
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHARE-
HOLDERS:
From net investment in-
come................... (619,010) (1,183,642) (111,403) (223,110)
In excess of net invest-
ment income............ (127) (411)
From net realized gains
from investment
transactions........... (1,898,742)
In excess of net real-
ized gains from invest-
ment transactions...... (85,370)
------------ ------------ ----------- -----------
Change in net assets from
shareholder distribu-
tions................... (619,010) (1,183,769) (111,403) (2,207,633)
------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 3,607,976 5,142,236 14,019,564 10,048,490
Dividends reinvested.... 162,145 172,474 1,182,257 432,466
Cost of shares redeemed. (790,361) (1,933,725) (3,087,426) (2,288,479)
------------ ------------ ----------- -----------
Change in net assets from
capital transactions.... 2,979,760 3,380,985 12,114,395 8,192,477
------------ ------------ ----------- -----------
Change in net assets..... 1,874,058 5,620,586 13,918,237 12,896,624
NET ASSETS:
Beginning of period..... 23,469,648 17,849,062 30,905,522 18,008,898
------------ ------------ ----------- -----------
End of period........... $25,343,706 $23,469,648 $44,823,759 $30,905,522
============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued.................. 365,057 532,400 1,135,693 869,389
Reinvested.............. 16,380 17,645 97,810 39,815
Redeemed................ (80,777) (195,215) (246,652) (199,082)
------------ ------------ ----------- -----------
Change in shares......... 300,660 354,830 986,851 710,122
============ ============ =========== ===========
</TABLE>
See notes to financial statements.
-8-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
INTERMEDIATE INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
ASSET BACKED SECURITIES (4.2%):
250,000 American Express Master Trust, 7.85%, 8/15/05......... $ 259,925
300,000 Chemical Master Credit Card Trust 1, 6.23%, 4/15/05... 291,174
250,000 Circuit City Credit Card Master Trust,
8.00%, 11/15/03....................................... 260,000
250,000 Standard Credit Card Master Trust, 7.25%, 4/7/08...... 251,500
-----------
Total Asset Backed Securities 1,062,599
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (7.2%):
Federal Home Loan Mortgage Corp.:
222,863 6.50%, 12/1/99, Pool #M80145........................... 219,917
500,000 6.00%, 8/15/07......................................... 478,040
Federal National Mortgage Assoc.: 650,000 6.50%, 10/25/06........ 635,674
Vendee Mortgage Trust: 500,000 6.75%, 3/15/06.................... 483,985
-----------
Total Collateralized Mortgage Obligations........................ 1,817,616
-----------
CORPORATE BONDS (54.8%):
Banking (3.3%):
500,000 Banc One, 7.25%, 8/1/02................................ 505,000
350,000 NationsBank, 7.00%, 5/15/03........................... 348,250
-----------
853,250
-----------
Conglomerate (1.0%):
250,000 Alco Standard, 8.88%, 4/15/01......................... 268,437
-----------
Electric Services (1.0%):
250,000 Florida Power & Electric, 6.88%, 4/1/04................ 244,374
-----------
Financial Services (1.1%):
300,000 US Life Corp., 6.75%, 1/15/98.......................... 301,500
-----------
Food Products (1.0%):
250,000 H. J. Heinz Co., 7.50%, 10/1/96........................ 250,937
-----------
Governments (Foreign) (1.0%):
250,000 Province of Ontario, 7.38%, 1/27/03.................... 255,313
-----------
Industrial Goods & Services (1.1%):
250,000 Whirlpool Corp., 9.00%, 3/1/03....................... 273,125
-----------
Insurance (2.8%):
250,000 Allstate Corp., 6.75%, 6/15/03........................ 239,687
220,000 Chubb Corp., 8.75%, 11/15/99......................... 232,375
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Insurance, continued:
250,000 Harleysville Group, 6.75%, 11/15/03.................... $ 239,688
-----------
711,750
-----------
Machinery & Equipment (1.1%):
250,000 John Deere Capital, 8.63%, 8/1/19*..................... 267,812
-----------
Natural Gas Transmission & Distribution (1.1%):
300,000 NGC Corp., 6.75%, 12/15/05............................. 285,374
-----------
Office Equipment & Services (3.5%):
500,000 Pitney Bowes, Inc. 9.25%, 6/15/08*..................... 575,625
300,000 Xerox Credit Corp., 10.00%, 4/1/99..................... 323,250
-----------
898,875
-----------
Oil & Gas Exploration & Production Services (3.6%):
355,000 Atlantic Richfield Co., 10.25%, 7/2/00*................ 372,750
250,000 Burlington Resources, Inc. 9.63%, 6/15/00.............. 274,375
250,000 Louisiana Land & Exploration, 8.25%, 6/15/02........... 263,750
-----------
910,875
-----------
Oil & Gas Transmission (1.5%):
250,000 El Paso Natural Gas, 9.45%, 9/1/99..................... 267,500
100,000 Questar Pipeline Co., 9.88%, 6/1/20*................... 109,500
-----------
377,000
-----------
Paper Products (1.0%):
250,000 Westvaco Corp., 10.25%, 7/1/18*........................ 265,625
-----------
Pharmaceuticals (1.1%):
250,000 Eli Lilly & Co., 8.38%, 12/1/06........................ 272,813
-----------
Printing & Publishing (0.9%):
200,000 R.R. Donnelley & Sons Co., 9.13%, 12/1/00.............. 217,500
-----------
Railroads (2.0%):
250,000 Consolidated Railroad Co., 9.75%, 6/1/00............... 274,688
250,000 Union Pacific Co., 6.00%, 9/1/03....................... 231,875
-----------
506,563
-----------
Retail Stores (6.3%):
500,000 Dayton Hudson Co., 9.75%, 7/1/02....................... 560,000
250,000 Kohl's Corp., 6.70%, 2/1/06............................ 234,688
</TABLE>
Continued
-9-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
INTERMEDIATE INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Retail Stores, continued
250,000 Lowe's Cos., Inc. 6.38%, 12/15/05....................... $ 235,000
250,000 May Department Stores, 9.88%, 12/1/02................... 285,625
260,000 Supervalu, Inc., 7.80%, 11/15/02........................ 272,675
-----------
1,587,988
-----------
Savings & Loans (1.1%):
250,000 Golden West Financial, 10.25%,
12/1/00................................................ 281,250
-----------
Supermarkets (1.1%):
250,000 Secured Finance, Inc. (Kroger), 9.05%, 12/15/04......... 280,625
-----------
Textile Products (1.0%):
250,000 V.F. Corp., 7.60%, 4/1/04............................... 250,000
-----------
Transportation & Shipping (1.1%):
250,000 General American Transportation, 8.63%, 12/1/04......... 268,125
-----------
Telecommunications (2.1%):
250,000 Northwestern Bell Telephone, 9.50%, 5/1/00.............. 271,875
250,000 Southern New England Telephone, 7.13%, 8/1/07........... 247,813
-----------
519,688
-----------
Utilities--Electric (5.3%):
250,000 Alabama Power Co., 7.00%, 1/1/03*....................... 248,125
300,000 Allegheny Generating Co., 5.63%, 9/1/03................. 276,375
300,000 Iowa Electric Light & Power Co., 8.63%, 5/15/01......... 321,000
250,000 Pennsylvania Power & Light Co., 7.75%, 5/1/02........... 257,188
250,000 Potomac Electric Power, 5.00%, 9/1/02................... 225,000
-----------
1,327,688
-----------
Utilities--Gas (2.1%):
250,000 Equitable Resources, 7.50%, 7/1/99...................... 255,000
250,000 Southern Natural Gas, 8.88%, 2/15/01.................... 268,750
-----------
523,750
-----------
Utilities--Gas & Electric (3.0%):
250,000 Baltimore Gas & Electric Co., 8.38%, 8/15/01............ 265,625
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities--Gas & Electric, continued:
250,000 Pacific Gas & Electric Co., 9.06%, 12/15/97............. $ 259,063
246,000 Public Service Electric Co., 6.00%, 7/1/98.............. 243,540
-----------
768,228
-----------
Utilities--Telephone (3.6%):
500,000 Mountain States Telephone, 9.50%, 5/1/00................ 543,750
400,000 Southwestern Bell Capital, 6.62%, 11/27/06.............. 379,500
-----------
923,250
-----------
Total Corporate Bonds 13,891,715
-----------
MEDIUM TERM NOTES (4.0%):
Finance (1.0%):
250,000 Capital Holding Corp., 9.27%, 5/7/01.................... 272,813
-----------
Insurance (1.0%):
255,000 W. R. Berkeley, 6.71%, 3/4/03........................... 251,175
-----------
Pharmaceutical (1.0%):
250,000 Smithkline Beecham Corp., 7.50%, 5/1/02*................ 253,438
-----------
Utility-Electric (1.0%):
250,000 Kentucky Power, 6.65%, 5/1/03........................... 240,624
-----------
Total Medium Term Notes 1,018,050
-----------
MORTGAGE BACKED SECURITIES (10.9%):
Federal Home Loan Mortgage Corp.:
539,702 7.00%, 7/1/15, Gold Pool #D91111........................ 520,283
493,161 6.50%, 11/1/15, Pool #D91169............................ 462,314
542,387 7.00%, 4/1/16, Gold Pool #D91297........................ 522,232
Federal National Mortgage Assoc.:
248,480 7.03%, 9/1/05, Pool #073162............................. 239,353
248,545 6.72%, 10/1/05, Pool #73221............................. 235,392
299,790 6.71%, 5/1/06, Pool #73407.............................. 283,775
Government National Mortgage Assoc.:
508,576 7.00%, 3/15/26, Pool #398518............................ 487,791
-----------
Total Mortgage Backed Securities 2,751,140
-----------
U.S. GOVERNMENT AGENCIES (16.3%):
Export Funding Trust:
225,000 7.89%, 2/15/05.......................................... 233,863
</TABLE>
Continued
-10-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
INTERMEDIATE INCOME FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Bank:
250,000 8.20%, 1/16/98.......................................... $ 256,750
Federal Home Loan Mortgage Corp.:
1,500,000 5.34%, 7/15/96.......................................... 1,496,265
500,000 5.26%, 7/19/96.......................................... 498,460
250,000 6.25%, 3/15/99.......................................... 248,805
250,000 7.13%, 7/21/99.......................................... 254,480
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- -----------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED
Government National Mortgage Assoc.:
495,489 6.50%, 4/20/11.......................................... $ 475,789
Small Business Administration:
500,000 7.35%, 8/1/05, SBIC 95-C................................ 488,750
189,314 6.75%, 9/25/18, Pool #502410............................ 189,787
-----------
Total U.S. Government Agencies 4,142,929
-----------
Total (Cost-$24,713,030)(a) $24,684,049
===========
</TABLE>
- -------
Percentages indicated are based on net assets of $25,343,706.
* Put and demand features exist allowing the Fund to require the repurchase
of the instrument within variable time periods.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation........... $376,150
Unrealized
depreciation........... (405,131)
--------
Net unrealized
depreciation........... $(28,981)
========
</TABLE>
See notes to financial statements.
-11-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER (4.9%):
Financial Services (4.9%):
2,200,000 Prudential Funding, 7/9/96............................. $ 2,197,384
-----------
Total Commercial Paper 2,197,384
-----------
COMMON STOCKS (93.9%):
Banks (7.3%):
15,000 AmSouth Bankcorp. ..................................... 541,875
15,000 BankAmerica Corp....................................... 1,136,250
23,100 First Chicago NBD Corp................................. 903,787
18,000 KeyCorp................................................ 697,500
-----------
3,279,412
-----------
Building Materials (1.0%):
15,000 Masco Corp............................................. 453,750
-----------
Chemicals--General (5.3%):
20,000 Air Products & Chemicals, Inc.......................... 1,155,000
23,000 Sigma-Aldrich.......................................... 1,230,500
-----------
2,385,500
-----------
Computers & Peripherals (6.1%):
15,000 Cisco Systems (b)...................................... 849,375
14,000 Hewlett-Packard Co..................................... 1,394,750
50,000 Oak Technology, Inc. (b)............................... 468,750
-----------
2,712,875
-----------
Containers--Metal, Glass, Paper, Plastic (3.2%):
21,000 Rubbermaid, Inc........................................ 572,250
30,000 Sonoco Products Co. ................................... 851,250
-----------
1,423,500
-----------
Electrical Equipment (5.3%):
25,000 DSC Communications Corp. (b)........................... 753,125
12,000 Emerson Electric Co.................................... 1,084,500
14,000 Thomas & Betts Corp.................................... 525,000
-----------
2,362,625
-----------
Financial Services (5.1%):
13,000 Federal Home Loan Mortgage Corp........................ 1,111,500
35,000 Federal National Mortgage Assoc........................ 1,172,500
-----------
2,284,000
-----------
Food Distributors & Wholesalers (5.1%):
30,000 Albertsons, Inc........................................ 1,241,250
31,000 Sysco Corp............................................. 1,061,750
-----------
2,303,000
-----------
Food Processing & Packaging (3.1%):
15,900 Hershey Foods Corp..................................... 1,166,662
11,100 Smucker (J.M.), Class B................................ 206,738
-----------
1,373,400
-----------
Hospital & Nursing Equipment & Supplies (3.0%):
27,600 Johnson & Johnson, Inc................................. 1,366,200
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- ----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Insurance (3.2%):
16,000 Allstate Corp........................................... $ 730,000
14,000 Chubb Corp.............................................. 698,250
----------
1,428,250
----------
Medical Supplies (3.2%):
34,800 Biomet, Inc. (b)........................................ 500,250
28,000 St. Jude Medical, Inc................................... 938,000
----------
1,438,250
----------
Newspapers (2.4%):
15,000 Gannett Co., Inc........................................ 1,061,250
----------
Office Equipment & Supplies (1.9%):
18,000 Pitney Bowes, Inc....................................... 859,500
----------
Oil & Gas Exploration, Production, & Services (8.7%):
17,000 Amoco Corp.............................................. 1,230,374
18,000 Anadarko Petroleum...................................... 1,044,000
8,500 Atlantic Richfield Co................................... 1,007,250
14,200 Burlington Resource, Inc................................ 610,600
----------
3,892,224
----------
Pharmaceuticals (5.6%):
18,000 Eli Lilly & Co.......................................... 1,170,000
21,000 Merck & Co., Inc. ...................................... 1,357,125
----------
2,527,125
----------
Precision Instruments & Related (0.7%):
10,000 Dionex Corp. (b)........................................ 322,500
----------
Printing & Publishing (1.0%):
13,200 R.R. Donnelley & Sons Co................................ 460,350
----------
Real Estate Investment Trusts (0.9%):
14,000 Duke Realty Investments, Inc............................ 423,500
----------
Restaurants (1.2%):
12,000 McDonald's Corp......................................... 561,000
----------
Retail (2.8%):
10,000 Lowes Cos., Inc......................................... 361,250
20,000 May Department Stores................................... 875,000
----------
1,236,250
----------
Semiconductors (2.8%):
17,000 Intel Corp.............................................. 1,248,438
----------
Soaps & Cleaning Agents (2.6%):
12,900 Procter & Gamble Co..................................... 1,169,063
----------
Software & Computer Services (1.9%):
16,000 Adobe Systems, Inc...................................... 645,750
15,000 Novell, Inc. (b)........................................ 208,125
----------
853,875
----------
</TABLE>
Continued
-12-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Textile Products (1.3%):
9,500 V.F. Corp.............................................. $ 566,438
-----------
Trucks--Manufacturing (1.6%):
41,000 Wabash National Corp. ................................. 727,750
-----------
Utilities--Gas (4.8%):
22,000 Consolidated Natural Gas............................... 1,149,500
25,500 El Paso Natural Gas.................................... 981,750
-----------
2,131,250
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Utilities--Telecommunications (2.8%):
15,000 Pacific Telesis Group.................................. $ 506,250
15,000 SBC Communications..................................... 738,750
-----------
1,245,000
-----------
Total Common Stocks 42,096,275
-----------
PREFERRED STOCKS (0.6%):
Financial Services (0.6%):
10,000 American General Capital, 8.13%, 9/30/25.............. 248,750
-----------
Total Preferred Stocks 248,750
-----------
Total (Cost--$38,914,831) (a) $44,542,409
===========
</TABLE>
- -------
Percentages are based on net assets of $44,823,759.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation......... $6,755,759
Unrealized
depreciation......... (1,128,181)
----------
Net unrealized
appreciation......... $5,627,578
==========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
-13-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
1.ORGANIZATION:
The MMA Praxis Mutual Funds (the "Company") is an open-end management
investment company established as a Delaware business trust under a
declaration of Trust dated September 30, 1993, as is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"). The Company
currently comprises the Intermediate Income Fund and the Growth Fund
(individually a "Fund", collectively "the Funds"). Between the date of
organization and the date of commencement of operations (January 4, 1994),
the Fund had no operations other than those relating to organizational
matters, including the issuance on December 28, 1993 of 5,000 shares of the
Intermediate Income Fund and 5,000 shares of the Growth Fund at $10.00 per
share to Mennonite Mutual Aid Association.
The investment objective of the Intermediate Income Fund is to seek current
income. The Fund normally invests 65% of its total assets in fixed income
securities. The investment objective of the Growth Fund is to seek capital
appreciation. The Fund invests primarily in undervalued securities of medium
to large capitalization companies.
2.SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Company in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The preparation
of financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses for the period. Actual results could differ from those estimates.
SECURITIES VALUATION:
Investments in common and preferred stocks, corporate bonds, commercial
paper, municipal bonds, U.S. Government securities and securities of U.S.
Government agencies of the Funds are valued at their market values
determined on the basis of the latest available bid prices in the
principal market (closing sales prices if the principal market is an
exchange) in which such securities are normally traded. Investments in
investment companies are valued at their respective net asset values as
reported by such companies. The differences between the cost and market
values of investments are reflected as either unrealized appreciation or
depreciation.
SECURITIES TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or accretion of discount. Dividend income is recorded on the ex-
dividend date. Gains or losses realized on sales of securities are
determined by comparing the identified cost of the security lot sold with
the net sales proceeds.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation and from registered broker-dealers
which the adviser deems creditworthy under guidelines approved by the
Board of Trustees, subject to the seller's agreement to repurchase such
securities at a mutually
Continued
-14-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
agreed-upon date and price. The repurchase price generally equals the
price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the
underlying portfolio securities. The seller, under a repurchase agreement,
is required to maintain the value of collateral held pursuant to the
agreement at not less than the repurchase price (including accrued
interest). Securities subject to repurchase agreements are held by the
Company's custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system.
OPTIONS TRANSACTIONS:
When a Fund writes a covered call or put option, an amount equal to the
premium received is included in the Fund's statement of assets and
liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. If an
option expires on its stipulated expiration date or if the Fund enters
into a closing purchase transaction, a gain or loss is realized. If a
written call option is exercised, a gain or loss is realized for the sale
of the underlying security and the proceeds from the sale are increased by
the premium originally received. If a written put option is exercised, the
cost of the security acquired is decreased by the premium originally
received.
When a Fund purchases a call or put option, an amount equal to the premium
paid is included in the Fund's statement of assets and liabilities as an
investment, and is subsequently marked-to-market to reflect the current
market value of the option. If an option expires on the stipulated
expiration date or if the Fund enters into a closing sale transaction, a
gain or loss is realized. If the Fund exercises a call option, the cost of
the security acquired is increased by the premium paid for the call. If
the Fund exercises a put option, a gain or loss is realized from the sale
of the underlying security, and the proceeds from such sale are decreased
by the premium originally paid. Written and purchased options are non-
income producing securities. The options techniques utilized are to hedge
against fluctuations in the value of securities which the Funds hold or
intend to purchase. As of June 30, 1996 the Funds had no options
outstanding.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared and paid monthly for the
Intermediate Income Fund and declared and paid quarterly for the Growth
Fund, and distributable net realized capital gains, if any, are declared
and distributed at least annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments of mortgage-backed securities,
expiring capital loss carry forwards and deferrals of certain losses.
FEDERAL INCOME TAXES:
It is the policy of each of the Funds to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, Federal income taxes.
Continued
-15-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
ORGANIZATION COSTS:
Costs incurred by the Company in connection with its organization and
registration of shares have been deferred and are amortized using the
straight-line method over a period of five years from the commencement of
the public offering of shares of the Funds. In the event that any of the
initial shares of the Funds are redeemed during the amortization period by
any holder thereof, the redemption proceeds will be reduced by any
unamortized organizational expenses of the Company in the same proportion
as the number of said shares of the Fund being redeemed bears to the
number of initial shares of that Fund that are outstanding at time of
redemption.
OTHER:
Each Fund maintains a cash balance with its custodian and receives a
reduction of its custody fees and expenses for the amount of interest
earned on such uninvested cash balances. For financial reporting purposes
for the six months ended June 30, 1996, custodian fees and expenses and
expenses paid by third parties were increased by the following amounts:
<TABLE>
<CAPTION>
<S> <C>
Intermediate Income Fund............................................. $10,902
Growth Fund.......................................................... $4,649
</TABLE>
3.PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
Intermediate Income Fund............................... $6,283,996 $4,946,863
Growth Fund............................................ $13,851,730 $4,404,179
</TABLE>
4.RELATED PARTY TRANSACTIONS:
Menno Insurance Service, Inc. doing business as MMA Capital Management, (the
"Adviser") (a subsidiary of The Mennonite Foundation, Inc.), provides
investment advisory services to the Company. Under the terms of the
investment advisory agreement, the Adviser is entitled to receive fees based
on a percentage of the average net assets of each of the Intermediate Income
Fund and the Growth Fund.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio limited partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc.
BISYS serves the Company as manager and administrator. Under the terms of
the management and administration agreement, BISYS receives fees that are
computed daily as a percentage of the average net assets of each of Fund
with specified minimum amounts per Fund.
BISYS also serves as Fund distributor. BISYS receives fees for providing
distribution services under the Distribution Service Plan the ("Plan")
pursuant to Rule 12b-1 of the 1940 Act. Under the Plan, each Fund pays BISYS
a fee not to exceed, on an annual basis, 1.00% of the average daily net
asset value of each of Fund for payments BISYS makes to banks,
broker/dealers and other institutions, including affiliates of the Adviser,
and for expenses BISYS and any of its affiliates or subsidiaries incur for
providing distribution or shareholder service assistance.
Continued
-16-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS, CONTINUED
JUNE 30, 1996
(UNAUDITED)
BISYS Ohio serves each Fund as transfer agent and fund accountant. For
transfer services, BISYS Ohio is entitled to receive fees based upon the
number of shareholders with specified minimum per fund and surcharges for
transfer agency services. For fund accounting services, BISYS Ohio is
entitled to receive fees based on a percentage of the average daily net
assets of each Fund. In addition, BISYS Ohio is reimbursed for certain out-
of-pocket expenses incurred in providing such transfer agency and fund
accounting services.
Certain officers of the Company are affiliated with BISYS and/or MMA Capital
Management, Inc. Such officers are not paid any fees directly by the Funds
for serving as officers of the Company.
Certain redemptions of shares made within 5 years of purchase are subject to
contingent deferred sales charges ("CDSCs"). The applicable CDSC is equal to
a percentage of the lesser of the net asset value per share ("NAV") at the
date of the original purchase or at the date of redemption. For the six
months ended June 30, 1996, neither the Adviser nor BISYS Ohio have received
any money from commissions earned on sales of shares of the Funds. The sales
charge will not be imposed on increases above the NAV at the time of
purchase or shares purchased through the reinvestment of dividends or
capital gains.
<TABLE>
<CAPTION>
YEAR OF REDEMPTION CDSC
------------------ -----
<S> <C>
First 4.00%
Second 4.00%
Third 3.00%
Fourth 2.00%
Fifth 1.00%
Sixth and up 0.00%
</TABLE>
Fees may be voluntarily reduced or reimbursed to assist the Funds in
maintaining competitive expense ratios.
Information regarding these transactions are as follows for the six months
ended June 30, 1996:
<TABLE>
<CAPTION>
INTERMEDIATE INCOME GROWTH
FUND FUND
------------------- --------
<S> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)............. 0.50% 0.74%
Voluntary fee reductions........................ $21,124 $295
ADMINISTRATION FEES:
Annual fee (percentage of average net assets)... 0.15% 0.15%
Minimum annual fee.............................. $50,000 $50,000
Voluntary fee reductions........................ $875
12B-1 FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)............. 1.00% 1.00%
Voluntary fee reductions........................ $115,408 $145,767
EXPENSES REIMBURSED BY INVESTMENT ADVISER....... $27,514 $0
FUND ACCOUNTING AND TRANSFER AGENT FEES......... $43,179 $52,164
</TABLE>
-17-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE INCOME FUND GROWTH FUND
----------------------------------------- -----------------------------------------
SIX MONTHS JANUARY 4 SIX MONTHS JANUARY 4
ENDED YEAR ENDED 1994 TO ENDED YEAR ENDED 1994 TO
JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, DECEMBER 31, DECEMBER 31,
1996 1995 1994 (A) 1996 1995 1994 (A)
----------- ------------ ------------ ----------- ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................. $ 10.17 $ 9.14 $ 10.00 $ 12.07 $ 9.74 $ 10.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.... 0.27 0.53 0.45 0.03 0.10 0.09
Net realized and
unrealized gains
(losses) from
investments............. (0.48) 1.03 (0.86) 0.57 3.12 (0.07)
------- ------- ------- ------- ------- -------
Total from Investment
Activities............... (0.21) 1.56 (0.41) 0.60 3.22 0.02
------- ------- ------- ------- ------- -------
Distributions
Net investment income.... (0.25) (0.53) (0.45) (0.03) (0.10) (0.09)
Net realized gains....... (0.79) (0.19)
------- ------- ------- ------- ------- -------
Total Distributions..... (0.25) (0.53) (0.45) (0.03) (0.89) (0.28)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 9.71 $ 10.17 $ 9.14 $ 12.64 $ 12.07 $ 9.74
======= ======= ======= ======= ======= =======
Total Return (excludes
redemption charge)....... (2.08)%(c) 17.47% (4.09)%(c) 4.92%(c) 33.32% 0.27%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)............ $25,344 $23,470 $17,849 $44,824 $30,906 $18,009
Ratio of expenses to
average net assets...... 1.09%(b) 1.10% 1.10%(b) 1.74%(b) 1.75% 1.75%(b)
Ratio of net investment
income to average net
assets.................. 5.41%(b) 5.49% 4.96%(b) 0.53%(b) 0.90% 1.02%(b)
Ratio of expenses to
average net assets*..... 2.53%(b)** 2.64% 2.83%(b) 2.51%(b)** 2.81% 3.25%(b)
Ratio of net investment
income (loss) to average
net assets*............. 4.06%(b) 3.95% 3.23%(b) (0.22)%(b) (0.16)% (0.48)%(b)
Portfolio Turnover....... 21.68% 31.57% 4.95% 12.40% 48.91% 35.22%
Average commission rate
period (d).............. $ $ $ $0.1039 $ $
</TABLE>
- ---------
* During the period, certain investment advisory, administration and 12b-1
fees were voluntarily reduced and certain expenses were reimbursed by the
investment adviser. If such voluntary fee reductions and reimbursements had
not occurred, the ratios would have been as indicated.
** During the six months ended June 30, 1996, the Fund received credits from
its custodian for interest earned on uninvested cash balances which were
used to offset custodian fees and expenses. If such credits had not
occurred, the expense ratio would have been as indicated. The ratio of net
investment income was not affected.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
-18-
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
Semi-Annual Report
INVESTMENT ADVISER FOR THE SIX MONTHS ENDED JUNE 30,
MMA Capital Management 1996
Post Office Box 483
Goshen, Indiana 46527
MMA Praxis Mutual Funds
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services INTERMEDIATE INCOME FUND
3435 Stelzer Road GROWTH FUND
Columbus, Ohio 43219
[LOGO OF MMA]
LEGAL COUNSEL
Dechert Price & Rhoads This report is for the
1500 K Street, NW information of shareholders
Washington, DC 20005 of MMA Praxis Mutual Funds,
but it may also be used as
sales literature when
preceded or accompanied by
AUDITORS the current prospectus,
Coopers & Lybrand L.L.P. which gives details about
100 East Broad Street charges, expenses,
Columbus, Ohio 43215 investment objectives, and
operating policies of the
TRANSFER AGENT Funds. Read the prospectus
BISYS Fund Services Ohio, Inc. carefully before investing
3435 Stelzer Road or sending money.
Columbus, Ohio 43219
[RECYCLED PAPER LOGO]
[PRINTED WITH SOY INK LOGO]
