MMA PRAXIS MUTUAL FUNDS, N-30D, 1999-09-07

MMA PRAXIS MUTUAL FUNDS
N-30D, 1999-09-07

Previous: AMTEC INC, DEF 14A, 1999-09-07

Next: MONTGOMERY FUNDS II, 485BPOS, 1999-09-07

<PAGE>

Semi-Annual Report
for the six months ended June 30, 1999

MMA Praxis
Mutual Funds

Intermediate Income Fund
Growth Fund
International Fund
[Logo of MMA]
<PAGE>

Message
From
The
President

Dear MMA Praxis Shareholders:

Financial markets in review

Investors who were convinced that the only types of mutual funds to invest in
were those consisting of the big, large company growth stocks (e.g. Microsoft,
Coca-Cola, Lucent Technologies, etc.) received a wake-up call in the second
quarter of 1999. Following are some of the highlights from the first six
months of 1999's topsy-turvy markets:

. The S&P 500 Index is up 12.39 percent through June 30.

. 1998's market laggards are up sharply in 1999. Small company stock mutual
funds rocketed up 15.56 percent in the second quarter and for the year are
up an average 8.56 percent. Japan Funds, coming off several years of dismal
performance, are up more than 38 percent through June 30.

. The average actively managed U.S. stock mutual fund was up 11.1 percent
through June 30, just behind the S&P 500's 12.4 percent increase. However,
in the second quarter, 69 percent of active fund managers beat the S&P 500
Index, compared to just 26 percent in the first quarter.

. The Federal Reserve Board raised short-term interest rates by one-quarter
point to five percent, the first rate hike in several years. This unsettled
the bond markets, whose price moves opposite to that of interest rates and
drove the yield on the 30-year treasury bond over 6 percent.

. Technology, one of the strongest areas in the economy, led the upward move
in stock prices. Investor enthusiasm for tech stocks was fed by a
significant increase in the popularity of the Internet.

. The MSCI EAFE Index, while up 3.24 percent for the first six months,
significantly lagged most major domestic indices.

. Looking ahead, three factors supporting U.S. stocks appear favorable--
interest rates, low inflation and economic growth. Emerging markets, while
still struggling, have seen substantial improvement. Asia appears to have
recovered from its darkest days, and there is growing optimism in Japan.
Absent any catalyst to change these positive fundamentals, the U.S. and
overseas markets should continue to do well.

MMA Praxis Growth Fund overview

In my last letter to MMA Praxis Growth Fund shareholders, I offered the
following observation: "Although 1998 was clearly a disappointment, we remain
confident that the market pendulum will eventually swing back through the
median line of stock price rationality. It is at this point that several of
the Growth Fund's holdings will be rewarded with price appreciation."

Although we were convinced that the market pendulum would swing, and that
several large Growth Fund positions might ultimately be rewarded by the market
for their outstanding value; few of us would have predicted the swiftness of
the turnaround.

For the first six months of 1999, the Growth Fund generated a total return of
16.1 percent for its shareholders, significantly outperforming the S&P 500 by
nearly four percentage points. This performance also placed us in the top six
percent of 907 mutual funds in our investment category according to
Morningstar, the respected fund research firm. The average fund in the large
blend category returned 10.5 percent.

-1-
<PAGE>

Message
From
The
President--
continued

In late 1998, fund management made a decision to strategically position the
Growth Fund as an "all-weather fund." With this declaration, the Growth Fund
will hold a variety of growth and value stocks. We will also concentrate on
companies that are larger in size, although the fund will pursue mid- and
small-sized companies when compelling investment opportunities are identified
in these sectors. These strategic changes are consistent with the fundamental
investment polices as outlined in the prospectus and are intended to smooth
out the volatility of fund returns.

MMA Praxis Intermediate Income Fund overview

The Intermediate Income Fund generated negative results on an absolute basis
but positive performance relative to its mutual fund peer group. For the first
six months of 1999, your fund returned -1.77 percent. Against other
intermediate investment grade bond funds, the MMA Praxis Intermediate Income
Fund fared quite well, outperforming 55 percent of funds in its category,
according to Morningstar.

As noted earlier in my report, interest rates rose moderately during the
period, with the yield on the benchmark 30-year treasury bond ending the half
year at 5.97 percent, 88 basis points above the bond's 5.09 percent yield at
the beginning of the year. As interest rates rose, of course, bond prices
declined. During the first six months, these bond price declines shaved 4.39
percentage points from the fund's benchmark index, the Lehman Brothers
Aggregate Bond Index, offsetting most of its interest income and generating a
total return of -1.37 percent.

MMA Praxis International Fund overview

The International Fund, on the heels of a truly outstanding 1998, posted a
respectable 6.59 percent return for the first six months of 1999. This
performance was 3.35 percent better than its passive benchmark, the MSCI EAFE
Index but less than its diversified international peer group, which returned
8.59 percent according to Morningstar.

Economic and political crises overseas, coupled with steep losses in most
emerging stock markets, have caused many investors to question or even abandon
international investing. In addition, the S&P 500 has handily outperformed
most international market benchmarks over the past four years. "Why bother
with international investing?" many investors exclaim as they move their
dollars from the overseas markets to large company domestic stocks.

Why bother? Because history teaches us that nothing goes on in a straight line
forever, which is why international stocks may again outperform the U.S. at
some point, just as they did in every rolling 10-year period from 1979-1994
(see chart on page 19).

The stark divergence in U.S. and foreign stocks has created new investment
opportunities overseas. Better relative valuations, potential for faster
economic growth, and major corporate restructurings all contribute to an
environment for improved equity valuations overseas. In addition, the long-
term correlation between the movements of U.S. and foreign stocks remains low,
making international equities an effective diversification tool for U.S.
investors who want to manage risk.

Other fund highlights

. Religious-based investing. MMA Praxis' initiative to sensitize the public to
the opportunities of religious-based investing has been successful. A
special study by Wiesenberger, the mutual fund tracking service, underscored
the fact that more and

-2-
<PAGE>

Message
From
The
President--
continued

more Americans want their money to be invested and saved in accord with their
beliefs. The results of this study have created favorable press for MMA Praxis
Mutual Funds in many major market newspapers. Among these are The Boston
Globe, Cincinnati Enquirer, Christian Science Monitor, Kansas City Star,
Sacramento Bee, New York Post, and Sarasota Harold-Tribune. The enclosed
article reprinted on page 20 appeared in the Denver, Colorado Rocky Mountain
News is representative of the type of articles being written.

. Roll-out of Class A shares. Effective May 3, 1999, MMA Praxis investors have
a choice of purchasing either Class A or B shares. Class A shares carry an
up-front sales charge with a lower expense ratio. Class B shares have no up-
front load, but do assess a penalty if the shares are redeemed within five
years of purchase. The management expense ratio in Class B shares is slightly
higher.

A word about index investing

Index investing has become quite popular these days. For some individuals,
these investments may be appropriate. Clearly, passive investing does hold some
advantages over an actively managed portfolio and should garner a portion of
many investors well-diversified portfolios.

For many, however, the decision to jump on the S&P 500 Index bandwagon may come
too late, as investors chase these big blue-chip companies which have
significantly outperformed most other market sectors the past few years. Turn
back the pages of history a few years and a different story is told. Over a 14-
year time span from 1968-1982, the S&P didn't earn 30 percent or 20 percent a
year. In fact, it didn't even make its 10 percent historical norm. Shockingly,
it lost money over this fourteen-year time period! Over an even longer period
(1961-1982), the Dow Jones Industrial Average rose an average of just 2 percent
each year. That is an entire generation of investors that who next to nothing
in the very "best" stocks.

During these same years, most of the market performed quite nicely, as the
average stock tripled in value. But buyer beware, S&P indexing is not a
guarantee of investment success. Small stocks, value stocks and international
investing should again have their day in the sun. At MMA, we believe that a
professional, actively managed mutual fund is the best way for most investors
to benefit from this market rotation, whenever it occurs.

Conclusion

Although the markets have been quite turbulent over the past few months, it
becomes meaningless when viewed in the context of a lifetime of investing. I
encourage you to ignore the daily noise created by active stock and bond
traders and remain focused on your long-term financial planning goals and the
asset allocation strategy that was designed to help you reach these objectives.
Patience and discipline are the hallmarks of a successful investor.

One final note

Beginning with this report and found on page 18, I would like to take an
opportunity to address some of the questions frequently heard about MMA Praxis
and mutual fund investing, in general. While the answers to such questions
should not replace the guidance of your local investment professional, I do
think you'll find them helpful. If you have a

-3-
<PAGE>

Message
From
The
President--
continued

question about MMA Praxis, or mutual fund investing just contact me at the
addresses below. I'll try to answer as many as space will allow.

John L. Liechty, ChFC
MMA Praxis Mutual Funds
P.O. Box 483
Goshen, IN 46527

[email protected]

On behalf of the entire MMA Praxis Mutual Fund family, I want to thank you for
allowing us to partner with you in your commitment to achieve your financial
goals through stewardship investing. We take our responsibility seriously and
will continue to work hard to preserve the trust and confidence you have shown
in investing with the MMA Praxis family of funds.

Your partner in investing,

/s/ John L. Liechty
John L. Liechty, ChFC
President, MMA Praxis Mutual Funds

-4-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Intermediate Income Fund

The first half of 1999 has been a retracement of the panic-driven spike of
1998. Added to this was further weakness as fears of several Fed rate
increases set in. In general, corporate bonds and mortgages outperformed
governments.

The first half total return for the fund was -1.77 percent, without loads. The
Lehman Aggregate was down 1.37 percent. The Lipper Intermediate Investment
Grade Bond Fund Average was down 1.60 percent.

As an investment manager charged with addressing both financial productivity
and social responsibility, I want to highlight a few companies held in this
fund. The first company is an addition to the portfolio, Federal Express. As
noted by Fortune Magazine/1/ and the Council on Economic Priorities' 1999
rankings FedEx. was 13th best company for minorities. As Fortune noted about
the company, "With its plethora of people of color on non-management tracks
(like drivers), FedEx hunts future managers in unlikely places. To wit:
Shannon Brown, an African-American operations VP, began in 1978 as a cargo
handler." From an investment perspective, we like the strong trends at FedEx
and its parent, FDX Corp. Debt ratios for the company have steadily declined
and the RPS acquisition adds an important growth vehicle which has diversified
the revenue stream. This creates some potential for an upgrade at some point
in time.

Other portfolio companies mentioned in the article were Fannie Mae (No. 2), a
company noted in the article for doubling its number of high-paid minorities
during the prior year, and Ameritech (No. 23). Ameritech is recognized for 23
percent of its officers and managers being minorities, as well as recently
stepping up its charitable contributions for the benefit of minorities.

We also like the prospects for Boston Scientific, a manufacturer of cardiology
and other medical equipment. There was some concern about one of Boston
Scientific's new cardiovascular products but the company seems to be resolving
the issue. If a stock issue can be brought to the market, we look for the bond
to rally as its yield spread tightens.

Crown Cork and Seal performed very well as the spread tightened significantly
as concerns about the credit risk of lower BBB bonds subsided. Crown Cork is
one of the world leaders in metal container packaging. This is a mature
industry but Crown has managed to excel in it. Further, Crown has been a good
corporate citizen through its community development efforts in Philadelphia.

Another company we like is Masco. Masco is the leading manufacturer of water
faucets sold under the brand names "Delta," "Peerless," and "Epic." They are
also a leader in kitchen cabinets under the "Merillat" and "Fieldstone" names.
Since spinning off their furniture lines, profitability has improved, and the
bonds have narrowed their risk premiums. We feel there is more room for that
to happen.

One of the major events of the second quarter was the final approval to add
high-yield bonds to the portfolio. To date, we have been unsuccessful in
finding the kind of issues we like, but we do expect to see that change in the
third quarter. Our outlook for the second half is more favorable than the
first half. Bonds have sold off to levels at which corporate yields provide
very attractive inflation and credit risk premiums. We do not expect a big
rally, but returns should return to positive levels. Market expectations have
turned more negative which is probably a good sign. And lastly, we think the
interest rate trend over the 1999-2000 time frame is likely to be
characterized as a period of interest rate bottoming.

Delmar King, Investment Manager
MMA Praxis Intermediate Income Fund

- -------
/1/Fortune magazine, July 19, 1999

-5-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Intermediate Income Fund (continued)

[CHART APPEARS HERE]
Intermediate Income Fund -- Class A
Value of a $10,000 Investment

Aggregate Total Return
- -----------------------------
Since Inception
Date (5/12/99)
- -----------------------------
6/30/99 (0.49)%
6/30/99** (4.18)%

Lipper Intermediate
Investment Grade Bond
CDSC NO CDSC Fund Index Lehman Aggregate Index
5/12/99 10,000 10,000 10,000 10,000
6/30/99 9,582 9,951 9,966* 9,968*
*Indicates performance from 5/31/99 thru 6/30/99
**Reflects Applicable Sales Charge

The Lehman Aggregate Bond Index includes fixed rate debt
issues rated investment grade or higher by Moody's
Investor's Service, Standard and Poor's(R) Corporation, or
Fitch Investor's Service with at least one year to maturity.
The Lipper Intermediate Investment Grade Bond Fund Index
includes funds that invest at least 65% of its assets in
investment grade debt issues (rated in top four grades) with
dollar-weighted average maturities of five to ten years.
These indices are for illustrative purposes only and do 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 total return set forth reflects a
waiver of a portion of the fund's advisory or administrative
fees. In such instances, and without waiver of fees, total
return would have been lower.

-6-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Intermediate Income Fund (continued)

[CHART APPEARS HERE]
Intermediate Income Fund--Class B
Value of a $10,000 Investment

Average Annual Total Return
- ---------------------------------------------------------
Since Inception
Date 6 Month 1 Year 3 Year (1/4/94)
- ---------------------------------------------------------
6/30/99 (1.77)% 4.82% 5.79% 4.99%
6/30/99** (5.61)% (2.04)% 5.19% 4.99%

Lipper Intermediate
Investment Grade Bond Lehman Aggregate
CDSC NO CDSC Fund Index Bond Index
1/4/94 10,000 10,000 10,000 10,000
12/31/94 9,590 9,590 9,621 9,708
6/30/95 10,680 10,680 10,632 10,819
12/31/95 11,260 11,260 11,257 11,501
6/30/96 11,030 11,030 11,100 11,361
12/31/96 11,510 11,510 11,621 11,919
6/30/97 11,760 11,760 11,950 12,287
12/31/97 12,393 12,390 12,619 13,068
6/30/98 12,727 12,827 13,074 13,583
12/31/98 13,196 13,296 13,590 14,205
6/30/99 13,061 13,061 13,404 14,003

**Reflects Applicable Contingent Deferred Sales Charge

Past performance is not indicative of future results. The
investment return and principal value will fluctuate so that
investors' shares, when redeemed, may be worth more or less
than the original cost. CDSC reflects a deduction of a
declining CDSC starting at 4.00 percent for the years
illustrated.

The Class B contingent deferred sales charge (CDSC) is not
included in the above value of a $10,000 Investment graph
since the performance is for more than 5 years and the CDSC
would not longer apply.

-7-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Growth Fund

Equity market overview

The first half of 1999, and more specifically the second quarter, has brought
a great sense of relief to a multitude of equity investment managers,
including this manager at MMA Praxis. While less than 30 percent of such
managers outperformed the S&P 500 in the year's first quarter, almost 70
percent did so in this second quarter. A trend reversal was also seen as the
Dow Jones Industrial Average outpaced the S&P 500, 12.54 percent to 7.05
percent for the second quarter and 20.46 percent to 12.38 percent since the
first of the year. The same mega-cap stocks which drove the S&P 500
performance above all others in 1998 have now held this index behind other
major indices.

During 1998, equity investors had significant concerns over the possible
slowing of the economy and sought companies with stable growth in earnings.
This was evidenced by the market's narrow advancement led by only the biggest
of the big mega-cap stocks. 1999's second quarter has shown a more broadly
based confidence in the U.S. economy. Part of this has come from the calming
of international fears, which had loomed over our national economy. With this
cloud now gone, sectors such as capital goods and oil services have begun to
advance nicely. Mid- and small-sized companies outperformed, as demonstrated
by the advance of both the S&P 400 Midcap Index and the S&P Smallcap Index, up
14.15 percent and 15.41 respectively for the second quarter alone.

Widening market horizons

Broad participation and solid stock selection provided shareholders with solid
returns. As indicated by our last report, we felt our portfolio might benefit
from broadened market participation. We also anticipated that gains would be
achieved with an emergence of style rotation from growth to value.

Success stories

There are a number of companies which contributed to performance during the
first six months of 1999. Below are a few names worth highlighting.

Morton International. Most of us know this company as the distributor of the
blue-label table salt container. However, Morton International is much more
than a single product company. It also manufactures a variety of specialty
chemicals and has a reputation for maintaining a strong sensitivity to the
environment. The company stock price was down 16 percent in 1997 and 29
percent in 1998. Your fund management began to buy Morton in mid-1998.
Unfortunately, the stock continued to languish and fell to $21.75 a share in
late 1998. However, as value-oriented investors, we exercised patience and
remained convinced that the intrinsic worth of the company was not reflected
in the stock price. Our patience was rewarded Feb.1, 1999, when Rohm and Haas
agreed to acquire Morton International for $37.125 per share. At the time of
this announcement, Morton stock represented approximately 2 percent of the
Growth Fund's assets. As of June 30, Rohm and Haas represented .47 percent of
the portfolio.

U.S. Filter. Your fund has historically held positions in a number of water
purification companies. Fund management is attracted to this sector of the
market for the positive environmental impact created by the products of these
companies. U.S. Filter plays a major role in purifying industrial waste water
to ensure toxins are removed prior to disposal. It also provides pure drinking
water for many Middle Eastern countries, transforming salt water into drinking
water through high-tech desalination equipment.

U.S. Filter's stock price was down 6 percent in 1997 and 24 percent in 1998.
Your fund began accumulating shares in May of 1998. By early 1999, U.S. Filter
became the fund's largest holding. On March 22, 1999, the Vivendi, the world's
largest environmental services provider, announced a buyout of all outstanding
shares of U.S. Filter at $31.50, a 66 percent increase over the stock's 1998
closing price. The premium paid by Vivendi to acquire U.S. Filter was a major
contributor to the Growth Fund's outstanding performance during the first six
months. Our shares in the new company were tendered at the acquisition's
completion.

-8-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Growth Fund (continued)

Boston Scientific. Boston Scientific manufactures and markets specialty
medical devices used in a broad range of surgical procedures. The company
stock price was pummeled in 1998, largely as a result of a coronary stent
recall. We felt these problems were temporary and that the market clearly
overreacted. On price weakness, we accumulated even more shares of the stock
to the point that it became the second largest holding in the fund. The stock
closed at $26.50 on Feb. 26, 1999. On March 19, the stock closed at $41.50, an
appreciation of 57 percent in three weeks! For the six months ending June 30,
the stock was up 63.9 percent. The stock represented 1.3 percent of the June
30 portfolio.

Fastenal Company is a full-line industrial distributor that specializes in
threaded accessories for use throughout all industrial and commercial
facilities and construction areas. Products include nuts, bolts, washers, and
cutting tools. These are in addition to other company divisions such as the
Material Handling Division and the Hydraulic and Pneumatic Division. Not only
is Fastenal Company the largest fastener distributor in the U.S., but the
company derives significant sales from abroad. With the recent recovery of the
international markets, overseas sales and earnings should continue to rise.
This stock was up over 49 percent for the second quarter and should continue
strong growth over at least the next several quarters. As of June 30, this
stock represented 1.9 percent of the fund's holdings.

One of the names added to the Growth Fund during the quarter was Dollar
General. We were drawn to the company for a variety of reasons including
consistent earnings and sales growth, and its market power relative to the
competition. It was also felt that the stock was selling at a discount to
multiple measures based upon the stock's historic price, its current valuation
relative to the S&P 500, and its position as compared to other retailers such
as Wal-Mart. Each of these factors made Dollar General an attractive addition
to our client holdings.

Certainly, not all of our stock selections result in this level of success.
But, it only takes a few "home-runs" to make a big difference in fund
performance.

Internet frenzy the MMA way

Popular media has been filled with news of overnight wealth from playing the
Internet stocks. Place a dot.com behind any company and the stock seems
destined for great profits. But there is more than one way to profit from the
growth of the Internet. Instead of gambling on upstart companies with no
history of profits, we have chosen to invest in the infrastructure of the
Internet companies like Tellabs, MCI Worldcom, and Williams Company. While
Tellabs is providing the equipment to allow access to the Worldwide Web,
Williams Company is laying the fiber optics which allow the billions of bytes
of data to travel to that equipment. The Internet is clearly a new industry
that is here to stay. Our feeling is that the long-term profits on the net
will come from the ability to make information available.

Market outlook

Though the shift from mega-cap stock leadership to a more broadly based market
participation is less than six months old, we view this as the beginning of a
return to normalcy. History would indicate that value stocks, as well as
small-cap stocks, outperform their respective growth and large-cap peers over
the long run. We expect that this short-term style shift will continue to
support those long-term numbers.

Our valuation of the overall market would indicate that nearly 90 percent of
stocks are now fairly valued. This should bode well for most sectors of the
market, but should specifically produce positive results in the mid- to small-
sized companies.

-9-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Growth Fund (continued)

Far from forecasting any sort of smooth ride, volatility will continue in the
market. Such peaks and valleys of short-term performance will be driven
primarily by a tightening of monetary policy verses a focus or concern over
corporate earnings.

Keith Yoder, CFA
Investment Manager
MMA Praxis Growth Fund

[CHART APPEARS HERE]
Growth Fund--Class A
Value of a $10,000 Investment

Aggregate Total Return
- ------------------------------
Since Inception
Date (5/12/99)
- ------------------------------
6/30/99 2.19%
6/30/99** (3.16)%

CDSC NO CDSC S&P 500 Domini 400
5/12/99 10,000 10,000 10,000 10,000
6/30/99 9,684 10,219 10,556 10,642

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 indices are for illustrative purposes
only and do 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 total return
set forth reflects a waiver of a portion of the fund's
advisory or administrative fees. In such instances, and
without waiver of fees, total return would have been lower.

-10-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Growth Fund (continued)

[CHART APPEARS HERE]
Growth Fund--Class B
Value of a $10,000 Investment

Average Annual Total Return
- -----------------------------------------------------------
Since Inception
Date 6 Month 1 Year 3 Year (1/4/94)
- -----------------------------------------------------------
6/30/99 16.09% 16.56% 20.61% 17.84%
6/30/99** 12.09% 12.56% 20.15% 17.84%

NO CDSC CDSC S&P 500 Domini 400
1/4/94 10,000 10,000 10,000 10,000
12/31/94 10,026 10,026 10,132 10,018
6/30/95 11,968 11,968 12,181 12,140
12/31/95 13,367 13,367 13,940 13,845
6/30/96 14,025 14,025 15,349 15,238
12/31/96 15,488 15,488 17,141 17,125
6/30/97 17,992 17,992 20,675 20,864
12/31/97 20,010 19,803 22,859 23,680
6/30/98 21,118 21,018 26,908 30,335
12/31/98 21,102 21,202 29,392 31,853
6/30/99 24,607 24,607 33,631 35,784

**Reflects Applicable Contingent Deferred Sales Charge

Past performance is not indicative of future results. The
investment return and principal value will fluctuate, so
that investors' shares, when redeemed, may be worth more or
less than the original cost. CDSC reflects a deduction of a
declining CDSC starting at 4.00 percent for the years
illustrated.

The Class B contingent deferred sales charge (CDSC) is not
included in the above value of the $10,000 investment graph
since the performance is for more than 5 years and the CDSC
would no longer apply.

-11-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis International Fund

Solid performance

The MMA Praxis International Fund outperformed its benchmark for the first
half of 1999. It was up 6.59 percent compared to the MSCI EAFE Index, which
was up 3.97 percent (net dividends reinvested). The portfolio outperformed the
index for the first half due to a combination of strong stock selection and
good country allocation. During the first half, the portfolio increased its
exposure to Japan (up 20.7 percent in U.S. dollar terms) to a slight
overweight position, which had a positive impact on performance.

Geographic weightings

The portfolio also reduced its exposure to continental Europe, which was also
beneficial to performance. Specifically, we reduced our holdings in France (up
1.13 percent in U.S. dollar terms for the first half period), Switzerland
(down 12.9 percent) and maintained our underweight position in Germany (down
4.2 percent).

In the U.K., the portfolio had a slight underweighting, which was additive to
performance given the underperformance of the U.K. market for the period (up
2.6 percent). In the Pacific Basin, we were underweight the markets, which
detracted from performance. Exposure to the emerging markets, however, was
additive to performance. The MSCI Europe Index (down 2.4 percent in U.S.
dollar terms) once again lagged the MSCI Pacific Index (up 21.8 percent). In
terms of emerging markets, the MSCI Emerging Markets Index was up 38.4 percent
for the first half; with the Emerging Asia Index up 54.3 percent and the
Emerging Latin America Index up 29.3 percent.

Specific holdings of note

Stock selection added significant value, especially in Japan; NIT DoCoMo was
up 64.3 percent, Shohkoh Fund was up 122.2 percent, Kao was up 24.3 percent,
Rohm was up 69.6 percent, NTT was up 50.7 percent and Canon was up 34.3
percent (in U.S. dollar terms). Stock selection was mixed in Europe;
Mannesmann was up 30.1 percent, Telefonica was up 10.4 percent, Telecom Italia
was up 21.6 percent, Asda was up 37.5 percent and Vodafone AirTouch was up
21.3 percent. However, disappointing performance came from the following
holdings; Unicredito (-26.1 percent), Portugal Telecom (-11.3 percent),
Novartis (-25.7 percent) and Glaxo Wellcome (-19.3 percent). Vodafone-AirTouch
is the largest holding in the portfolio. Vodafone, the U.K. cellular company
with stakes in other cellular companies around the world, merged with AirTouch
of the U.S. to form the largest global mobile player with operations in 23
countries. The new group has 23 million subscribers, which is growing at 8
million per year. Vodafone-AirTouch estimates it will achieve over $200m of
after-tax cost savings by March 2002. Synergies will come from reduced handset
prices due to greater bargaining power, reduced cost of development of third-
generation technology and reduced interconnection costs for pan-European
calls. The German company, Hoechst, is another one of the portfolio's larger
holdings. Hoechst is the world's largest chemical company that is in the
process of transforming itself into a life sciences group. It has decided to
merge with the French company, Rhone Poulenc, creating Aventis, which will be
the second largest pharmaceutical company and the largest agriculture-chemical
company in the world and divest their remaining chemical assets. Aventis' drug
pipeline is underestimated by the market and currently trades at a 30 percent
discount to other life science companies. We expect this discount to narrow
because we expect Aventis' operating margins to double over the next three
years as Aventis' pipeline brings more new drugs with higher margins into the
very profitable U.S. market. The group will also achieve significant cost
savings from the merger, boosting the bottom line.

A more recent and smaller position for the portfolio is Korea Telecom. We
participated in the placement in May. We like the company because it is very
geared to economic growth in Korea. Korea is experiencing a very strong
recovery from the crisis that started in 1997, and Korea Telecom is
operationally geared to this recovery as usage and revenue per line start to
grow again. If you combine this with a very credible restructuring story by
the management, the

-12-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis International Fund (continued)

higher top-line growth will flow straight through to the bottom line. The
company is trading at an unjustified large discount to other global telecom
companies.

Continuing market malaise?

At the beginning of the year, market pundits were forecasting slowing world
growth and continued financial market malaise in 1999 due to the impact from
the lasting Asian crisis, Russian crisis, and the more recent currency crisis
in Brazil. However, last October when the Fed and more than 100 central banks
around the world swiftly moved to ease policy, this marked a major economic
inflection point. During the first few months of the year, we started to see
signs that economic growth was coming in stronger than expected. By the second
quarter, financial markets around the world started to discount at least one
quarter of a percent hike in U.S. interest rates over concerns about inflation
and an overheating economy. When the June 30 Federal Open Market Committee
meeting actually took place, the markets reacted favorably to this 25 basis
point hike and even more favorably to the neutral bias.

Conventional wisdom was that the Fed's "modest-pre-emptive" tightening would
be enough to reverse last year's 75 basis-point easing, which would be
sufficient to bring the economy onto the fabled "soft landing" track of
moderate growth and little inflation. We tend to differ with this view. We
feel that global economic growth is now just recovering and that it will
strengthen further even with the Fed's recent rate hike. In the U.S., recent
figures show that manufacturing sector activity has heated up due to sizzling
consumer demand. We expect to see manufacturing activity to sustain over 4
percent plus gross domestic product (GDP) growth for the balance of the year.

Economic recoveries

In Japan, we see tentative signs that a recovery in Japanese industrial output
is underway. The inventory-to-sales ratio has reached levels that are normally
associated with a major upswing in activity. We expect the economic news from
Japan to surprise investors on the upside for the remainder of the year.

In Europe, the U.K. economy is benefiting from seven interest rate cuts in
seven months. Pound Sterling has weakened along with the rate cuts, which has
helped the export sector. U.K. businesses are reporting that inventories are
near desired levels, so production may soon accelerate. In Euroland, low
interest rates, the weak Euro, and the end of an inventory build-up, have
helped stabilize business confidence in recent months. We expect the current
consumer led recovery will ignite a rebound in industrial activity in the
second half of the year. Asia (ex-Japan) is seeing the strongest growth
currently (given the weak comparison period of last year). Emerging markets
such as Korea and Brazil are experiencing generous capital inflows because
investors are chasing prospects that improving global activity will aid these
economies. Commodity prices are rising that also support the proposition that
an important inflection point has been reached and the world may experience a
globally synchronized recovery early next year. Given the momentum of these
economies, we feel that the Fed might have to tighten more than market
participants now expect.

-13-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis International Fund (continued)

As we move through the remainder of 1999, the portfolio continues to
reposition itself for this new economic backdrop. Specifically, we have
increased our exposure in Japan and have added to more cyclical names in
Europe.

Martina Oechsle
Oechsle International Advisors, LLC
MMA Praxis International Fund Sub-advisor

[CHART APPEARS HERE]
International Fund--Class A
Value of a $10,000 Investment

Aggregate Total Return
- ---------------------------------
Since Inception
Date (5/12/99)
- ---------------------------------
6/30/99 1.09%
6/30/99** (4.20)%

CDSC NO CDSC MSCI EAFE
5/12/99 10,000 10,000 10,000
6/30/99 9,580 10,109 10,390*

*Indicates performance from 5/31/99 thru 6/30/99
**Reflects Applicable Sales Charge

The MSCI EAFE Index is an unmanaged index, generally
representative of international stocks. 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 total return set forth reflects a waiver of a
portion of the fund's advisory or administrative fees. In
such instances, and without waiver of fees, the total return
would have been lower.

International investing involves increased risk and
volatility.

-14-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis International Fund (continued)

[CHART APPEARS HERE]
International Fund--Class B
Value of a $10,000 Investment

Average Annual Total Return
- --------------------------------------------------
Since Inception
Date 6 Month 1 Year (4/1/97)
- --------------------------------------------------
6/30/99 6.59% 6.65% 16.38%
6/30/99** 2.59% 2.65% 15.27%

CDSC NO CDSC MSCI EAFE
4/1/97 10,000 10,000 10,000
6/30/97 11,501 11,501 11,298
12/31/97 10,640 10,640 10,340
6/30/98 12,784 13,184 11,987
12/31/98 12,791 13,191 12,426
6/30/99 13,761 14,061 12,919

**Reflects Applicable Contingent Deferred Sales Charge

International investing involves increased risk and
volatility.

-15-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Stewardship Investing Update
What is Stewardship Investing? And, more importantly, how does Stewardship
Investing impact the way MMA Praxis makes investment decisions? These are
questions we get quite frequently from long-time shareholders and new
investors alike. In past reports, I've shared with you part of MMA Praxis'
journey in understanding the religious and practical aspects of our approach
to investing. This approach, formally approved by our board this past May, is
summarized by the following paragraph:

"Stewardship Investing is a philosophy of financial decision-making
motivated and informed by faith convictions. It holds in tension a
responsibility for the productive use of financial resources and a deep-
seated concern for the individuals, communities, and environments that are
impacted by our investment choices. We consider Stewardship Investing an
intrinsic part of who we are as a people celebrating God's generosity and
actively following the example of Jesus Christ."
--MMA Stewardship Investing Statement, 1999

From this foundation, MMA Praxis seeks to carry out its conviction by
investing in companies that support positive values by engaging in shareholder
activism and direct company dialogue and by pursuing an intentional program of
community development investing. It is our hope that the Stewardship Investing
philosophy will serve as a guide for us and others seeking to mesh their
deeply held values with their financial responsibilities.

In an effort to more effectively live out our Stewardship Investing
commitments, MMA Praxis will be hosting a conference, Nov. 3-4, in Norfolk,
Va., to deepen our understanding of the values that lie at the heart of
positive business practice. The "Anabaptism and Business Today" Conference
will cover a wide range of issues and will involve theologians, academics, and
business practitioners. The conference is open to the public, so please check
the MMA Praxis website for more information on content and registration.

Living out our stewardship convictions often means engaging both corporate and
political authorities in ways that call their attention to issues of concern
that aren't taken into consideration in a typical "bottom line" approach. MMA
Praxis did this clearly and publicly this past May by sending an open letter
to the CEOs of Merrill Lynch and Saloman Smith Barney who had announced plans
to underwrite $500 million in China Development Bank bonds supporting the
Three Gorges Dam project in central China. In this letter, we made it clear
that MMA Praxis, joining other social investment leaders, would not purchase
any of these bonds and encouraged the companies to reconsider their
involvement. The Three Gorges Dam, the largest construction project ever
undertaken on Earth, is also considered one of the most socially and
environmentally damaging. Reports in National Geographic, The New York Times,
The Financial Times, and, recently, China's own news services have documented
the dangers, struggles and negative impact of a project that will uproot 2
million people, destroy 240,000 acres of China's most fertile farmland, and
submerge hundreds of cities, towns, and cultural sites. In a response just
received from management at Merrill Lynch it was stated that, now, "no portion
of the proceeds of this financing would be used for the Three Gorges project."
We will be monitoring this situation carefully.

As we prepare for the formal launch of MMA's Community Development Investment
Program, MMA Praxis has spoken in favor of political efforts to secure and
expand policies supportive of community investing activities. We spoke out in
favor of congressional action that would preserve key provisions of the
Community Reinvestment Act. This act requires banks to serve all members of
their service areas, including poor and disadvantaged neighborhoods. We have
also supported President Clinton's proposal for a "New Market Tax Credit" that
would provide tax benefits for companies and individuals investing long term
in impoverished urban and rural areas. We believe these are important steps.

Investing in quality companies, from both a financial and social perspective,
is at the heart of our Stewardship Investing philosophy. The level of the
"social" quality of our investments is attested to in a variety of ways. For

-16-
<PAGE>

MMA Praxis Mutual Funds

MMA Praxis Stewardship Investing Update (continued)

instance, the July 19 issue of Fortune Magazine presented its "Diversity Elite
50"--a list of the 50 best companies for Asians, Blacks and Hispanics. The MMA
Praxis portfolio proudly holds 13 of these 50 companies. Of those companies
available for inclusion in MMA Praxis (less exclusions due to company size,
non-public status, or negative screens) we include a full one-third. Fannie
Mae, SBC Communications, AllState, and Bank of America are all MMA Praxis
holdings ranking among the top 20 companies according to Fortune.

In other areas, recent company reviews have highlighted Xerox for their
innovative and generous employee benefits programs, as well as their proactive
environmental efforts. Eli Lilly & Co. continues to be a stand-out in terms of
charitable giving (estimated at $87.6 million in 1997), family leave and flex-
time policies, and profit sharing programs. Ionics, Inc., is a leader in
environmental technologies related to water purification/reclamation and also
the treatment of contaminated soils and sediments. Sara Lee Corp., the well-
known producer of desserts and food staples, was recently added to MMA Praxis'
stock universe after its decision in 1998 to divest itself of a tobacco
distribution subsidiary. It is a company with an excellent record in areas of
innovative charitable giving, promotion of racial diversity, and subsidized
child-care programs.

All in all, the past six months have provided ample opportunities for MMA
Praxis to take action living out our conviction to Stewardship Investing that
we share with our investors. I look for the next six months to provide even
more of the same.

Mark A. Regier
SRI Research and Advocacy Coordinator

-17-
<PAGE>

MMA Praxis Mutual Funds

Frequently asked questions about the MMA Praxis Mutual Funds
Q. What is the difference between a growth and value stock? Which type of
stock does MMA favor?

A. Growth stocks are marked by faster-than-average gains in earnings (profits)
over the past few years and are expected to continue to show a high level
of profit growth.

Value stocks tend to be inexpensive based on various measures of their
intrinsic worth, such as current earnings or total assets. They are out of
favor with investors for any number of reasons. The job of value managers
is to identify companies poised for a turnaround, leading to increased
profits and a higher stock price.

Here is a helpful example. A "growth" investor is paying .50 for something
that might be worth $1.00 in the near future. The "value" investor is
trying to pay .50 for something that is estimated to be worth $1.00 today.

MMA Praxis Growth Fund uses a combination of growth and value stocks. This
investing approach is often referred to as a "blended style" or "growth at
a reasonable price." MMA Praxis International Fund tilts toward a growth
style bias.

It is important to remember that MMA Praxis funds will invest in any great
company (socially responsible, of course), regardless of where it falls on
an arbitrary valuation scale, provided it meets the MMA portfolio manager's
financial criteria.

Q. Recently, my financial planner talked about establishing an investment
program that was consistent with my personal risk tolerance. What type of
risk was she talking about?

A. Virtually every type of investment involves some element of risk (yes, even
bank CDs!) What is important to keep in mind is that risk and reward go
hand-in-hand. Low-risk investments tend to provide lower returns. To
realize higher rates of return, you must also accept a greater level of
risk.

Following are the main types of investment risk. Remember, however, that
risk can be perceived differently by different people. What you perceive to
be risky may not be viewed that way by another investor.

1. Market Risk. The danger that you will lose money as a result of a steep
market decline. The thought that an investment can move down, as well as
up, can be unsettling. Stocks do tend to display more price movement than
bonds. However, in the long run, stocks have tended to outperform more
conservative investments. Of course, please remember that past performance
cannot guarantee future results.

2. Inflation Risk. Inflation or purchasing power risk is the chance that
the value of your money won't keep pace with inflation which can steadily
erode your investment value over time. As prices of goods and services
rise, you need more money just to stay even. Bank CDs, money market funds
and passbook savings accounts are especially vulnerable to inflation risk.

3. Interest Rate Risk. Interest rate risk is concerned with the danger that
your investment will lose value because it has a fixed rate of return that
will not change as interest rates rise. Many investors fail to consider
this type of risk as a factor when putting savings into fixed rate
investments such as bank CDs.

Interest rate risk is the reason you want to make sure you balance
investments that lock you into a fixed rate of return with investments
whose return can keep up with economic or market changes.

4. Liquidity Risk. Another often overlooked, but equally dangerous threat
to all investors is liquidity risk. This refers to the possibility that you
may need your money before your investment's maturity date. Many so-called,
"risk-free" investments, such as certificates of deposit and annuities with
surrender charges, must be held for a specified period of time in order for
you to receive the stated return. If you need your money for an emergency,
you'll probably be subject to penalties, and the interest you actually earn
is calculated using a much lower rate. Also, MMA Praxis "B" Share Funds
carry penalties for redemptions held less than five years. This risk should
be factored into your financial planning equation.

-18-
<PAGE>

MMA Praxis Mutual Funds
[BAR CHART APPEARS HERE]
U.S. vs. Foreign Long-Term Performance
Average Annual Total Returns for Rolling 10-Year Periods
1979 - 1998
S&P EAFE
1979 5.9 10
1980 7.8 13
1981 7 11
1982 5.9 7
1983 11 12
1984 14 15
1985 13 16
1986 12 22
1987 15 23
1988 16 22
1989 17 23
1990 12 16
1991 17 18
1992 16 17
1993 15 17
1994 14 17
1995 15 14
1996 16.2 8
1997 18 7
1998 19 6
This chart and others showing investment performance are for illustrative
purposes only and are not intended to represent the performance of any MMA
Proxis Mutual Fund. Past performance does not guarantee future results.
Sources: Standard & Poor's, T. Rowe Price Associates; MSCI EAFE, FAME
Information Services, Inc.

-19-
<PAGE>

Denver Rocky Mountain News Sunday, March 28, 1999
MMA PRAXIS
INTERNATIONAL
FUND TOP 10
HOLDINGS

1. Vodafone,
telecommunications,
United
Kingdom
2. Telecom
Italia,
telecommunications,
Italy
3. KPN NV,
telecommunications,
Netherlands
4. Glaxo-
Wellcome,
pharmaceuticals,
United
Kingdom
5. Suez-
Lyonnaise
De Eaux,
utilities,
France
6. NIT
DoCoMo,
telecommunications,
Japanese
7. VNU NV,
publishing,
Netherlands
8. Mannesman
AG,
industrial
products,
Germany
9. Argentena
SA,
banking,
Spain.
10. Railtrack
Group,
railroad
maintenance,
United
Kingdom
Mennonite fund runs on principle

It's not "pure,' but it stays away from stock in reckless companies

By Al Lewis
News Staff Writer

Vern Rempel isn't about to park his retirement savings in a mutual fund that
invests in Lockheed Martin Corp. As pastor of Denver's First Mennonite Church,
he practices a faith that has emphasized pacifism since the 15th century.
"We're trying to stay away from investing in military-related industries," he
said.
He also refrains from companies that profit from gambling, alcohol, tobacco
and environmental recklessness.
"Overall, we are interested in businesses that are making some effort at
considering the common good and not just sheer profit-taking," he said.
Rempel does his investing through Goshen, Ind.-based Mennonite Mutual Aid, a
financial services organization owned by the Mennonite church. The group owns
MMA Praxis Mutual Funds, which attempts to invest according to Mennonite
beliefs.
Colorado is home to 5,000 Mennonites, who are visually indistinguishable but
count the Amish as their theological cousins. They derive their name from one
of their early leaders, Menno Simons.
In a modern, capitalist society, the Mennonites have no delusions about
purity when it comes to investing.
"It's not perfectly clean," Rempel said of MMA's investing style. "The
economy is far too complex for that. But the goal is to minimize our support
for these industries."
The MMA Praxis funds avoid companies with clear ties to undesirable
activities, but their charters don't set absolutes. The funds can invest in
companies as long as less than 5 percent of their revenues come from
objectionable sources.
Two of MMA Praxis' funds--International and Intermediate Income--have done
extremely well, but the company's Growth Fund is lagging.
. The MMA Praxis Growth Fund posted a disappointing 5.96 percent return in
1998, compared with 28.7 percent for the Standard & Poor's 500 Index. In 1997,
the fund posted a 29.2 percent return. Company officials say a value style of
investing steered the fund away from the large capitalization stocks that
dominated the market last year. So far this year, the fund's investment
discipline is doing better. The fund is up more than 5 percent.
. The MMA Praxis Intermediate Income Fund, which invests heavily in high-
yield bonds, was up 7.29 percent in 1998, vs. 7.25 percent for the benchmark
Lipper Analytical Services Intermediate Investment Grade Bond Fund.
. The MMA Praxis International Fund was up 23.98 percent last year. The
fund's benchmark, the Morgan Stanley Capital International Europe, Australia
and Far East Index, gained 18.23 percent.
Martina Oechsle Vasconcelles, who manages the international fund from her
office in Boston, said an overweighting in Europe boosted her performance. She
invested heavily in telecommunications companies, taking advantage of the
cellular phone revolution that is sweeping the continent.
"Last year, Europe was the place to be," Vasconcelles said. "But this year we
have been increasing our exposure in Japan."
Year-to-date, Japan's markets have outperformed most others. Vasconcelles
said the nation is finally getting a handle on its monetary and banking
policies, and is ripe for growth.

-20-
<PAGE>

Denver Rocky Mountain News Sunday, March 28, 1999
She recently has taken positions in Japanese financial stocks--Saukra Bank,
Nomura Securities and Nikko Securities--to profit from the expected upturn in
the economy. She also has begun to invest in Japan's restructuring industries,
including Toshiba and Matsushita Electric Industries.
"From the top down, we're starting to see the monetary and fiscal authorities
doing the right things," she said. "On the bottom up, we're starting to see a
lot more companies that are attractively valued and we see some positive
earnings surprised on the way."
As a socially conscious investor, Vasconcelles must not only choose which
companies are profiting, but how they will do it. Over the years, she has had
to drop holdings such as Royal Dutch Shell because of environmental concerns.
She also has had to play the role of shareholder activist.
In 1996, her Mennonite shareholders became upset over her investment in
Swedish pharmaceutical company Astra AB.
At the time, the chief executive officer of the company's U.S. subsidiary
faced a litany of allegations from financial fraud to sexual harassment.
"We sent a letter to management voicing our displeasure and insisting that
something be done," she recalls. "We tried to use our influence as
shareholders to get some kind of change."
MMA Praxis was but one of many socially responsible shareholders putting
demands on Astra. Ultimately, the chief executive was fired and sentenced to
prison for tax evasion.

- -------
*Reprinted with permission of the Denver Rocky Mountain News.

-21-
<PAGE>

Table of Contents

Statements of Assets and Liabilities
Page 23

Statements of Operations
Page 24

Statements of Changes in Net Assets
Page 25

Schedules of Portfolio Investments
Page 26

Notes to Financial Statements
Page 34

Financial Highlights
Page 40

-22-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Statements of Assets and Liabilities
June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Intermediate
Income Growth International
Fund Fund Fund
------------ ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$48,029,211; $142,525,962;
$32,777,831, respectively).......... $47,138,172 $166,695,888 $39,842,639
Cash................................ -- 47,997 170,757
Foreign currency, at value (Cost $0,
$0, and $60,530, respectively)...... -- -- 60,513
Interest and dividends receivable... 683,094 176,960 21,817
Receivable for capital shares
issued.............................. -- 2,809 227
Receivable for investments sold..... -- -- 219,710
Net unrealized gain from foreign
currency contracts.................. -- -- 212
Tax reclaim receivable.............. -- -- 57,377
Unamortized organization costs...... -- -- 9,196
Receivable for expense
reimbursement....................... 44,808 46,344 23,035
Prepaid expenses and other.......... 21,345 38,257 33,860
----------- ------------ -----------
Total Assets..................... 47,887,419 167,008,255 40,439,343
----------- ------------ -----------
LIABILITIES:
Cash overdrafts..................... 81,918 -- --
Payable for investments purchased... -- -- 67,134
Accrued expenses and other payables:
Investment advisory fees........... -- -- 4,135
Administration fees................ 585 2,011 504
Distribution fees--Class A......... 103 112 29
Distribution fees--Class B......... 68,837 196,479 52,465
Other.............................. 12,364 30,147 10,323
----------- ------------ -----------
Total Liabilities................ 163,807 228,749 134,590
----------- ------------ -----------
NET ASSETS:
Capital stock, at par value......... 48,992 93,945 28,981
Additional paid-in-capital.......... 48,487,240 127,827,781 33,892,117
Undistributed (distributions in
excess of) net investment income.... 13,275 (322,494) (354,238)
Accumulated undistributed net
realized gains (losses) from
investments and foreign
currency transactions.............. 65,144 15,010,348 (324,012)
Net unrealized appreciation
(depreciation) from investments and
translation of assets and
liabilities in foreign currencies.. (891,039) 24,169,926 7,061,905
----------- ------------ -----------
Net Assets....................... $47,723,612 $166,779,506 $40,304,753
=========== ============ ===========
Net Assets
Class A............................ $16,682,954 $ 8,696,375 $17,165,939
Class B............................ 31,040,658 158,083,131 23,138,814
----------- ------------ -----------
Total............................ $47,723,612 $166,779,506 $40,304,753
=========== ============ ===========
Outstanding shares (unlimited number
of shares authorized with $0.01 par
value)
Class A............................ 1,712,868 489,510 1,234,148
Class B............................ 3,186,313 8,904,959 1,663,969
----------- ------------ -----------
Total............................ 4,899,181 9,394,469 2,898,117
=========== ============ ===========
Net asset value
Class A--redemption price per
share............................. $ 9.74 $ 17.77 $ 13.91
=========== ============ ===========
Class B--offering price per share.. $ 9.74 $ 17.75 $ 13.91
=========== ============ ===========
Maximum Sales Charge--Class A....... 3.75% 5.25% 5.25%
=========== ============ ===========
Maximum Offering Price (100%/(100%-
Maximum Sales Charge) of net asset
value adjusted to nearest cent) per
share--Class A..................... $ 10.12 $ 18.75 $ 14.68
=========== ============ ===========
Maximum Redemption Price
(100%/(100%-Maximum Redemption
Charge) of net asset value adjusted
to nearest cent) per share--Class
B*................................. $ 10.15 $ 18.49 $ 14.49
=========== ============ ===========
</TABLE>
- ---------
* Redemption price per share (Class B) varies by length of time shares are
held. (See note 4)

See notes to financial statements.

-23-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Statements of Operations
For the six months ended June 30, 1999
(unaudited)
<TABLE>
<CAPTION>
Intermediate
Income Growth International
Fund Fund Fund
------------ ----------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......................... $ 1,441,576 $ 96,019 $ 40,970
Dividend income.......................... -- 875,110 352,301
Foreign tax withholding.................. -- -- (42,947)
----------- ----------- ----------
Total Income........................... 1,441,576 971,129 350,324
----------- ----------- ----------
EXPENSES:
Investment advisory fees................. 112,405 546,872 164,737
Administration fees...................... 33,722 104,839 27,407
Distribution fees--Class A............... 252 186 296
Distribution fees--Class B............... 224,308 738,647 182,448
Custodian fees........................... 2,361 5,063 22,141
Accounting fees.......................... 20,833 23,487 29,194
Organization costs....................... -- -- 3,516
Trustees' fees and expenses.............. 3,040 10,575 2,518
Transfer agent fees...................... 55,548 235,890 57,891
Other.................................... 35,861 98,838 30,513
----------- ----------- ----------
Gross Expenses......................... 488,330 1,764,397 520,661
Expenses waived........................ (154,092) (415,086) (116,709)
Expenses voluntarily reimbursed........ (77,105) (53,195) (38,231)
Expenses paid by third parties......... (2,361) (2,824) --
----------- ----------- ----------
Total Expenses......................... 254,772 1,293,292 365,721
----------- ----------- ----------
Net Investment Income.................... 1,186,804 (322,163) (15,397)
----------- ----------- ----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment and foreign currency
transactions............................ 36,378 12,071,811 1,013,573
Net change in unrealized
appreciation/depreciation from
investments and translation of assets
and liabilities in foreign currencies... (2,030,537) 10,923,882 1,284,449
----------- ----------- ----------
Net realized/unrealized gains (losses)
from investments......................... (1,994,159) 22,995,693 2,298,022
----------- ----------- ----------
Change in net assets resulting from
operations............................... $ (807,355) $22,673,530 $2,282,625
=========== =========== ==========
</TABLE>

See notes to financial statements.

-24-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate Income Growth International
Fund Fund Fund
-------------------------- -------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss).................. $ 1,186,804 $ 2,026,329 $ (322,163) $ (24,866) $ (15,397) $ (78,602)
Net realized gains
(losses) from
investment and foreign
currency transactions.. 36,378 363,895 12,071,811 11,456,000 1,013,573 (1,089,659)
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (2,030,537) 243,295 10,923,882 (5,004,409) 1,284,449 5,880,223
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
resulting from
operations.............. (807,355) 2,633,519 22,673,530 6,426,725 2,282,625 4,711,962
------------ ----------- ------------ ------------ ------------ -----------
Distributions to Class A
Shareholders:
From net investment
income.................. (86,859) -- -- -- -- --
Distributions to Class B
Shareholders:
From net investment
income.................. (1,085,822) (2,026,329) -- -- (277) --
In excess of net
investment income...... -- (871) -- (5,594) -- (229,547)
From net realized gains
from
investment transactions. -- (50,583) -- (10,523,193) -- --
In excess of net
realized gains from
investment
transactions........... -- -- -- -- -- (18,574)
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
resulting from
shareholder
distributions........... (1,172,681) (2,077,783) -- (10,528,787) (277) (248,121)
------------ ----------- ------------ ------------ ------------ -----------
Capital Transactions:
Proceeds from shares
issued.................. 24,924,850 9,897,569 22,380,803 37,346,093 27,488,229 10,642,995
Dividends reinvested.... 720,323 1,065,580 2,514 10,073,822 109,962 100,821
Cost of shares redeemed. (18,329,160) (2,470,626) (15,253,467) (10,651,224) (20,738,779) (1,290,098)
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets from
capital transactions.... 7,316,013 8,492,523 7,129,850 36,768,691 6,859,412 9,453,718
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets..... 5,335,977 9,048,259 29,803,380 32,666,629 9,141,760 13,917,559
Net Assets:
Beginning of period..... 42,387,635 33,339,376 136,976,126 104,309,497 31,162,993 17,245,434
------------ ----------- ------------ ------------ ------------ -----------
End of period........... $ 47,723,612 $42,387,635 $166,779,506 $136,976,126 $ 40,304,753 $31,162,993
============ =========== ============ ============ ============ ===========
Share Transactions:
Issued.................. 2,540,916 976,210 1,344,566 2,319,601 1,993,011 860,904
Reinvested.............. 72,013 105,231 170 687,391 8,426 8,374
Redeemed................ (1,881,434) (243,888) (907,310) (687,305) (1,491,230) (105,160)
------------ ----------- ------------ ------------ ------------ -----------
Change in shares......... 731,495 837,553 437,426 2,319,687 510,207 764,118
============ =========== ============ ============ ============ ===========
</TABLE>

See notes to financial statements.

-25-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund

Schedule of Portfolio Investments
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Asset Backed Securities (2.1%)
$ 250,000 American Express Master Trust, Series 1994-3, Class
A, 7.85%, 8/15/05................................... $ 265,923
250,000 Circuit City Credit Card Master Trust, Series 1994-2,
Class A, 8.00%, 11/15/03............................ 252,375
500,000 Discover Card Master Trust, Series 1999-2, Class A,
5.90%, 10/15/04..................................... 494,300
-----------
Total Asset Backed Securities (Cost $996,841) 1,012,598
-----------
Collateralized Mortgage Obligations (3.7%)
351,000 Federal National Mortgage Assoc., Series 1996-M6,
Class G, 7.75%, 9/17/23, ACES....................... 354,949
550,000 Federal National Mortgage Assoc., Series 1997-M4,
Class C, 7.30%, 8/17/18, ACES....................... 557,906
348,305 Small Business Investment Companies, Series 1995-
P10C, Class 1, 6.00%, 9/25/18....................... 356,142
500,000 Vendee Mortgage Trust, Series 1993-2, Class I, 6.75%,
3/15/06............................................. 499,590
-----------
Total Collateralized Mortgage Obligations (Cost $1,724,717) 1,768,587
-----------
Corporate Bonds (56.0%)
Banks (1.8%)
350,000 NationsBank Corp., 7.00%, 9/15/01.................... 355,250
500,000 Swiss Bank Corp.-New York, 7.38%, 6/15/17............ 500,000
-----------
855,250
-----------
Brokerage Services (2.6%)
750,000 Goldman Sachs Group, 6.65%, 5/15/09.................. 724,688
500,000 Morgan Stanley, Dean, Witter, Discover & Co., 9.38%,
6/15/01............................................. 528,750
-----------
1,253,438
-----------
Chemicals--General (1.0%)
500,000 Witco Corp., 6.60%, 4/1/03........................... 487,500
-----------
Data Processing & Reproduction (1.9%)
1,000,000 First Data Corp., 5.80%, 12/15/08.................... 926,250
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services (5.0%)
$1,000,000 Comdisco Inc., 6.00%, 1/30/02........................ $ 986,249
500,000 Crown Cork & Seal Financial PLC, 7.00%, 12/15/06..... 490,625
500,000 Equifax, Inc., 6.90%, 7/1/28......................... 468,750
150,000 Export Funding Trust, Series 1994-A, Class A, 7.89%,
2/15/05............................................. 156,651
250,000 Golden West Financial Corp., 10.25%, 12/1/00......... 262,813
-----------
2,365,088
-----------
Food Distributors & Wholesalers (1.1%)
250,000 Secured Finance, Inc.--Kroger, 9.05%, 12/15/04....... 279,063
260,000 SUPERVALU, Inc., 7.80%, 11/15/02..................... 269,425
-----------
548,488
-----------
Food Products (2.0%)
500,000 Dean Foods Co., 6.90%, 10/15/17...................... 481,875
500,000 Sara Lee Corp., 5.75%, 9/3/03........................ 485,625
-----------
967,500
-----------
Forest Products--Lumber & Paper (3.6%)
250,000 Westvaco Corp., 10.25%, 7/1/18, Callable 7/1/99
@ 104.61............................................ 262,188
500,000 Westvaco Corp., 7.75%, 2/15/23, Callable 2/15/03
@ 103.62............................................ 493,125
1,000,000 Weyerhaeuser Co., 6.95%, 8/1/17...................... 963,749
-----------
1,719,062
-----------
Heavy Machinery (0.6%)
250,000 John Deere Capital Corp., 8.63%, 8/1/19, Callable
8/1/04 @ 100........................................ 265,938
-----------
Industrial Goods & Services (9.3%)
1,000,000 American Greetings, 6.10%, 8/1/28.................... 933,750
500,000 Boston Scientific Corp., 6.63%, 3/15/05.............. 477,500
1,020,000 CSR America, Inc., 6.875%, 7/21/05................... 993,225
500,000 Masco Corp., 6.13%, 9/15/03.......................... 492,500
1,000,000 Masco Corp., 7.13%, 8/15/13.......................... 1,006,249
500,000 Service Corp. International, 6.30%, 3/15/03.......... 482,500
-----------
4,385,724
-----------
</TABLE>

Continued

-26-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund

Schedule of Portfolio Investments, Continued
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Insurance (3.0%)
$ 250,000 Allstate Corp., 6.75%, 6/15/03....................... $ 249,688
55,000 Chubb Corp., 8.75%, 11/15/99......................... 55,658
250,000 Harleysville Group, Inc., 6.75%, 11/15/03............ 248,750
400,000 Protective Life Corp., 7.95%, 7/1/04................. 414,500
500,000 W.R. Berkley Corp., 6.25%, 1/15/06................... 463,750
-----------
1,432,346
-----------
Metals--Fabrication (1.0%)
500,000 Worthington Industries, Inc., 7.13%, 5/15/06......... 491,250
-----------
Oil & Gas Exploration, Production & Services (1.1%)
250,000 Burlington Resources, Inc., 9.63%, 6/15/00........... 258,125
250,000 Louisiana Land & Exploration Co., 8.25%, 6/15/02..... 257,500
-----------
515,625
-----------
Oil & Gas Transmission (4.9%)
500,000 El Paso Energy Corp., 6.75%, 5/15/09................. 481,250
250,000 El Paso Natural Gas Co., 9.45%, 9/1/99............... 251,250
500,000 Enron Corp., 7.38%, 5/15/19.......................... 487,500
100,000 Questar Pipeline Co., 9.88%, 6/1/20, Callable 6/1/00
@ 104.67............................................ 107,000
500,000 Sonat, Inc., 6.88%, 6/1/05........................... 502,499
500,000 Tennessee Gas Pipeline Co., 7.50%, 4/1/17............ 499,375
-----------
2,328,874
-----------
Printing & Publishing (1.0%)
500,000 R.R. Donnelley & Sons Co., 6.625%, 4/15/29........... 457,500
-----------
Railroads (0.5%)
250,000 Conrail, Inc., 9.75%, 6/1/00......................... 258,438
-----------
Retail--Department Stores (2.3%)
300,000 Dayton Hudson Co., 8.50%, 12/1/22, Callable 12/1/02
@ 103.75............................................ 319,875
500,000 Federated Department Stores, 8.50%, 6/15/03.......... 530,000
250,000 Kohl's Corp., 6.70%, 2/1/06.......................... 243,750
-----------
1,093,625
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Textile Manufacturing (1.1%)
$ 500,000 VF Corp., 7.60%, 4/1/04, Callable 4/1/01 @ 100....... $ 521,250
-----------
Transportation Services (5.5%)
700,000 Federal Express, 9.88%, 4/1/02....................... 754,249
400,000 Federal Express, 10.13%, 7/15/03..................... 442,500
250,000 GATX Corp., 8.63%, 12/1/04........................... 270,313
500,000 Union Tank Car Co., 6.00%, 3/15/02................... 491,875
600,000 Union Tank Car Co., 7.13%, 2/1/07.................... 606,000
-----------
2,564,937
-----------
Utilities--Natural Gas (1.1%)
500,000 Michigan Consolidated Gas Co., 8.25%, 5/1/14......... 546,875
-----------
Utilities--Electric (3.1%)
500,000 Cincinnati Gas & Electric, 6.35%, 6/15/03............ 491,875
250,000 Potomac Electric Power Co., 5.00%, 9/1/02, Callable
9/1/99 @ 95.644..................................... 244,688
300,000 Puget Sound Energy, 6.46%, 3/9/09.................... 291,000
500,000 Texas New Mexico Power, 6.25%, 1/15/09............... 445,000
-----------
1,472,563
-----------
Utilities--Telecommunications (2.5%)
500,000 Ameritech Capital Funding Corp., 6.13%, 10/15/01..... 498,750
250,000 Ameritech Capital Funding Corp., 5.95%, 1/15/38,
Putable 1/15/05 @ 100............................... 237,188
500,000 Frontier Corp., 6.00%, 10/15/03...................... 469,375
-----------
1,205,313
-----------
Total Corporate Bonds (Cost $27,327,230) 26,662,834
-----------
Medium Term Notes (2.1%)
Financial Services (0.6%)
250,000 Capital Holding Corp., Series B, 9.27%, 5/7/01....... 262,812
-----------
Food Products (0.5%)
250,000 International Multifoods Corp., Series A, 6.71%,
10/5/00............................................. 250,625
-----------
Utilities--Natural Gas (0.5%)
250,000 UGI Utilities, Inc., Series B, 7.17%, 6/15/07........ 256,250
-----------
</TABLE>

Continued

-27-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund

Schedule of Portfolio Investments, Continued
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
Medium Term Notes, continued:
Utilities--Electric (0.5%)
$ 250,000 Kentucky Power Co., 6.65%, 5/1/03..................... $ 249,688
-----------
Total Medium Term Notes (Cost $1,007,186) 1,019,375
-----------
U.S. Government Agencies (34.9%)
Federal Home Loan Bank (0.3%)
150,000 4.47%, 7/1/99......................................... 149,981
-----------
Federal Home Loan Mortgage Corp. (10.1%)
72,327 6.50%, 12/1/99........................................ 72,009
500,000 5.63%, 9/5/01......................................... 497,330
325,268 7.00%, 11/1/07........................................ 326,696
2,250,000 5.75%, 3/15/09........................................ 2,140,313
500,000 6.50%, 3/25/13 CMO.................................... 487,340
601,842 6.00%, 1/1/14......................................... 581,368
346,419 6.50%, 11/1/15........................................ 337,207
395,307 6.50%, 3/1/18......................................... 383,507
-----------
4,825,770
-----------
Federal National Mortgage Assoc. (15.8%)
410,000 4.87%, 7/23/99........................................ 408,762
500,000 6.45%, 4/23/01........................................ 505,370
1,000,000 6.58%, 10/2/01........................................ 1,014,240
487,355 6.47%, 12/1/01........................................ 486,511
500,000 6.41%, 2/6/02......................................... 505,540
450,000 7.38%, 9/1/06......................................... 462,324
987,825 6.24%, 4/1/08......................................... 960,334
488,953 7.45%, 10/1/11........................................ 511,369
886,602 6.50%, 5/1/18......................................... 858,169
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies, continued:
Federal National Mortgage Assoc., continued:
$ 706,454 6.50%, 6/1/18......................................... $ 683,388
800,000 5.63%, 4/17/28........................................ 691,696
500,000 6.25%, 5/15/29........................................ 474,375
-----------
7,562,078
-----------
Government National Mortgage Assoc. (6.4%)
458,109 6.875%, 9/15/08....................................... 459,382
326,757 6.50%, 11/15/10....................................... 326,009
293,805 7.50%, 2/15/23........................................ 308,860
583,410 6.00%, 12/20/27....................................... 591,065
481,103 6.00%, 5/20/28........................................ 448,124
444,764 7.00%, 2/20/29........................................ 437,225
499,705 6.50%, 5/15/34........................................ 480,967
-----------
3,051,632
-----------
Small Business Administration (0.2%)
98,574 6.25%, 9/25/18, Pool #502410.......................... 99,067
-----------
Student Loan Mortgage Association (2.1%)
1,000,000 SLMA, 1997-3, Class A2, 0.00%, 10/25/10............... 986,250
-----------
Total U.S. Government Agencies (Cost $16,973,237) 16,674,778
-----------
Total Investments (Cost $48,029,211) (a)--98.8% 47,138,172
Other assets in excess of liabilities--1.2% 585,440
-----------
Total Net Assets--100.0% $47,723,612
===========
</TABLE>

- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation (depreciation) of securities as follows:

<TABLE>
<S> <C>
Unrealized
appreciation........ $ 241,959
Unrealized
depreciation........ (1,132,998)
-----------
Net unrealized
depreciation........ $ (891,039)
===========
</TABLE>

(b) Represents non-income producing securities.

ACES--Automatic Common Exchange Securities
CMO--Collateralized Mortgage Obligation
PLC--Public Liability Co.

See notes to financial statements.

-28-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
Growth Fund

Schedule of Portfolio Investments
June 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (96.8%)
Automotive Parts (2.2%)
187,600 Wabash National Corp.................................. $ 3,634,750
------------
Banks (6.2%)
33,000 Bank Of America Corp.................................. 2,419,313
48,000 Bank One Corp......................................... 2,859,000
52,000 KeyCorp............................................... 1,670,500
80,000 Wells Fargo Company................................... 3,419,999
------------
10,368,812
------------
Beverages (1.7%)
73,000 PepsiCo, Inc.......................................... 2,824,188
------------
Building Materials (1.9%)
62,000 Fastenal Co........................................... 3,251,125
------------
Chemicals--General (3.7%)
32,000 Air Products & Chemicals, Inc......................... 1,288,000
18,439 Rohm & Haas Co........................................ 790,564
120,000 Sigma-Aldrich Corp.................................... 4,132,500
------------
6,211,064
------------
Computers & Peripherals (7.0%)
58,000 Cisco Systems, Inc. (b)............................... 3,737,374
60,000 Compaq Computer Corp.................................. 1,421,250
22,000 Hewlett-Packard Co.................................... 2,211,000
54,000 Intel Corp............................................ 3,213,000
44,000 Seagate Technology, Inc. (b).......................... 1,127,500
------------
11,710,124
------------
Consumer Goods & Services (1.2%)
22,000 Procter & Gamble Co................................... 1,963,500
------------
Containers--Metal, Glass, Paper, Plastic (0.8%)
45,000 Sonoco Products Co.................................... 1,347,188
------------
Cosmetics & Toiletries (2.9%)
55,000 Gillette Co........................................... 2,255,000
45,000 Kimberly Clark Corporation............................ 2,565,000
------------
4,820,000
------------
Electronic & Electrical--General (4.3%)
25,000 Emerson Electric Co................................... 1,571,875
12,000 Texas Instruments, Inc................................ 1,740,000
80,000 Thomas & Betts Corp................................... 3,780,000
------------
7,091,875
------------
Environmental Control (1.8%)
82,900 Ionics, Inc. (b)...................................... 3,025,850
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Financial Services (4.4%)
52,000 Fannie Mae............................................ $ 3,555,500
65,000 Freddie Mac........................................... 3,769,999
------------
7,325,499
------------
Food Distributors & Wholesalers (2.3%)
45,000 Albertsons, Inc....................................... 2,320,313
50,000 Sysco Corp............................................ 1,490,625
------------
3,810,938
------------
Food Products (2.2%)
50,000 Kellogg Co............................................ 1,650,000
86,000 Sara Lee Corp......................................... 1,951,125
------------
3,601,125
------------
Industrial Goods & Services (1.3%)
75,000 Masco Corp............................................ 2,165,625
------------
Insurance (3.3%)
90,000 Allstate.............................................. 3,228,750
33,000 Chubb Corp............................................ 2,293,500
------------
5,522,250
------------
Leisure--Recreation (0.9%)
105,000 Callaway Golf Co...................................... 1,535,625
------------
Medical Supplies (7.0%)
36,000 Biomet, Inc........................................... 1,431,000
50,000 Boston Scientific Corp. (b)........................... 2,196,875
25,000 Johnson & Johnson, Inc................................ 2,450,000
45,000 Medtronic, Inc........................................ 3,504,374
57,000 St. Jude Medical, Inc. (b)............................ 2,030,625
------------
11,612,874
------------
Newspapers (3.0%)
93,000 Central Newspapers, Inc............................... 3,499,125
21,900 Gannett Co., Inc...................................... 1,563,113
------------
5,062,238
------------
Office Equipment & Service (3.9%)
38,000 Pitney Bowes, Inc..................................... 2,441,500
70,000 Xerox Corp............................................ 4,134,375
------------
6,575,875
------------
Oil & Gas Exploration, Production & Services (3.7%)
100,000 Global Marine, Inc. (b)............................... 1,543,750
80,000 The Williams Cos., Inc................................ 3,405,000
45,000 Transocean Offshore Inc............................... 1,181,250
------------
6,130,000
------------
</TABLE>
Continued

-29-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
Growth Fund

Schedule of Portfolio Investments, Continued
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued
Oil & Gas Transmission (0.8%)
36,200 El Paso Energy Corp................................... $ 1,273,788
------------
Oil-Integrated Companies (2.2%)
25,000 Atlantic Richfield Co................................. 2,089,063
15,000 BP Amoco Plc ADR...................................... 1,627,500
------------
3,716,563
------------
Oilfield Services & Equipment (1.3%)
145,000 Petroleum Geo-Services, Sponsored ADR (b)............. 2,156,875
------------
Pharmaceuticals (6.3%)
80,000 ALZA Corp. (b)........................................ 4,069,999
38,000 Bristol-Myers Squibb Co............................... 2,676,625
16,000 Eli Lilly & Company................................... 1,146,000
36,000 Merck & Co., Inc...................................... 2,664,000
------------
10,556,624
------------
Precision Instruments & Related (1.3%)
53,000 Dionex Corp. (b)...................................... 2,146,500
------------
Retail (2.6%)
56,250 Dollar General Corporation............................ 1,631,250
47,000 Lowe's Cos., Inc...................................... 2,664,313
------------
4,295,563
------------
Retail--Department Stores (1.5%)
39,400 Dayton Hudson Corp.................................... 2,561,000
------------
Software & Computer Services (2.3%)
80,000 First Data Corp....................................... 3,915,000
------------
Technology (1.9%)
42,000 Applied Materials, Inc. (b)........................... 3,102,750
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
---------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Telecommunications (9.0%)
57,000 AT&T Corp............................................ $ 3,181,313
45,000 Bell Atlantic Corp................................... 2,941,875
74,000 Cincinnati Bell, Inc................................. 1,845,375
37,000 MCI Worldcom, Inc. (b)............................... 3,191,250
65,000 SBC Communications, Inc.............................. 3,769,999
------------
14,929,812
------------
Telecommunications--Services & Equipment (1.1%)
27,000 Tellabs, Inc. (b).................................... 1,824,188
------------
Utilities--Natural Gas (0.8%)
62,000 MCN Energy Group, Inc................................ 1,305,875
------------
Total Common Stocks (Cost $137,193,490) 161,375,063
------------
Preferred Stocks (0.4%)
Automotive Parts (0.4%)
30,000 Dura Automotive Systems, 7.50%, 3/31/28.............. 738,750
------------
Total Preferred Stocks (Cost $750,000) 738,750
------------
U.S. Government Agencies (2.7%)
Federal Home Loan Bank (1.2%)
$2,050,000 4.47%, 7/1/99........................................ 2,049,746
------------
Federal National Mortgage Assoc. (1.5%)
2,540,000 4.87%, 7/23/99....................................... 2,532,329
------------
Total U.S. Government Agencies (Cost $4,582,472)................ 4,582,075
------------
Total Investments
(Cost $142,525,962) (a)--99.9% 166,695,888
Other assets in excess of liabilities--0.1% 83,618
------------
Total Net Assets--100.0% $166,779,506
============
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation (depreciation) of securities as follows:

<TABLE>
<S> <C>
Unrealized appreciation. $29,133,645
Unrealized depreciation. (4,963,719)
-----------
Net unrealized
appreciation............ $24,169,926
===========
</TABLE>

(b) Represents non-income producing securities.

ADR--American Depository Receipt

See notes to financial statements.

-30-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
International Fund

Schedule of Portfolio Investments
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (98.9%)
Australia (2.4%)
Banks (1.4%)
76,682 Australia & New Zealand Banking Group.................. $ 563,865
-----------
Beverages (1.0%)
97,527 Coca-Cola Amatil Ltd................................... 393,077
-----------
956,942
-----------
Canada (2.1%)
Telecommunications (2.1%)
17,400 BCE, Inc............................................... 843,520
-----------
France (8.2%)
Automotive Parts (1.9%)
9,091 Valeo SA............................................... 750,024
-----------
Food Products (0.2%)
460 Carrefour SA........................................... 67,600
-----------
Utilities--Water (6.1%)
8,611 Suez Lyonnaise des Eaux................................ 1,553,164
11,430 Vivendi................................................ 925,905
-----------
2,479,069
-----------
3,296,693
-----------
Germany (6.7%)
Chemicals--General (2.6%)
22,950 Hoechst AG............................................. 1,034,280
-----------
Machinery & Engineering (4.1%)
11,232 Mannesmann AG.......................................... 1,676,098
-----------
2,710,378
-----------
Greece (0.5%)
Telecommunications (0.5%)
8,510 Hellenic Telecommunication Organization SA............. 182,409
-----------
Hong Kong (1.5%)
Real Estate (1.5%)
65,000 Hutchison Whampoa Ltd.................................. 588,540
-----------
Italy (9.8%)
Banks (4.0%)
232,431 Banca Nazionale de Lavoro (b).......................... 731,085
15,298 Banca Popolare De Bergamo.............................. 336,038
124,179 Credito Italiano SpA (b)............................... 545,546
-----------
1,612,669
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Italy, continued
Radio & Television (2.6%)
117,661 Mediaset SpA........................................... $ 1,045,956
-----------
Telecommunications (3.2%)
123,109 Telecom Italia SpA..................................... 1,279,747
-----------
3,938,372
-----------
Japan (24.6%)
Brokerage Services (1.0%)
35,000 Nomura Securities Co. Ltd.............................. 409,754
-----------
Data Processing & Reproduction (1.6%)
23,000 Kao Corporation........................................ 646,088
-----------
Drugs (1.7%)
15,000 Takeda Chemical Industries............................. 695,247
-----------
Electronic & Electrical--General (6.0%)
28,000 Matsushita Electric Industrial Company, Ltd............ 543,639
7,000 Murata Manufacturing Co. Ltd........................... 460,358
4,000 Rohm Co. Ltd........................................... 626,259
4,000 TDK Corporation........................................ 365,841
63,000 Toshiba Corporation.................................... 449,196
-----------
2,445,293
-----------
Financial Services (5.1%)
89,000 Fuji Bank.............................................. 620,607
39,000 Nikko Securities Co., Ltd.............................. 251,652
110,000 Sakura Bank Ltd........................................ 417,148
730 Shohkoh Fund & Co. Ltd................................. 523,513
2,500 Takefuji Corp.......................................... 258,394
-----------
2,071,314
-----------
Food Distributors, Supermarkets & Wholesalers (1.7%)
10,000 Yokado Co. Ltd......................................... 669,222
-----------
Office Equipment (1.2%)
17,000 Canon, Inc............................................. 488,780
-----------
Telecommunications (4.0%)
24 NTT Mobile Communications Network, Inc................. 325,192
96 NTT Mobile Communications Network, Inc. (b)............ 1,284,905
-----------
1,610,097
-----------
</TABLE>
Continued

-31-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
International Fund

Schedule of Portfolio Investments, Continued
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued
Japan, continued
Utilities--Telecommunications (2.3%)
79 Nippon Telegraph & Telephone Corp..................... $ 920,303
-----------
9,956,098
-----------
Mexico (0.8%)
Utilities--Telecommunications (0.8%)
4,100 Telefonos de Mexico SA, Sponsored ADR, Class L........ 331,331
-----------
Netherlands (10.6%)
Computers & Peripherals (0.4%)
1,543 Equant (b)............................................ 142,258
-----------
Oil--Integrated Companies (2.0%)
13,680 Royal Dutch Petroleum Company*........................ 801,324
-----------
Publishing (2.6%)
25,857 Verenigde Nederlandse Uitgeversbedrijven Vererigd
Bezit................................................ 1,033,293
-----------
Retail (1.5%)
22,870 Vendex NV............................................. 610,857
-----------
Telecommunications (0.5%)
10,843 Libertel NV........................................... 212,460
-----------
Utilities--Telecommunications (3.6%)
31,336 Koninklijke KPN NV (b)................................ 1,470,378
-----------
4,270,570
-----------
New Zealand (1.6%)
Telecommunications (1.6%)
151,740 Telecom Corporation of New Zealand Ltd................ 651,322
-----------
Portugal (1.4%)
Telecommunications (1.4%)
14,110 Portugal Telecom...................................... 574,047
-----------
Singapore (0.2%)
Banks (0.2%)
6,000 Development Bank of Singapore Ltd..................... 73,305
-----------
South Korea (0.9%)
Telecommunications (0.9%)
9,100 Korea Telecom Corporation (b)......................... 364,000
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Spain (4.4%)
Banks (3.0%)
27,436 Argentaria SA.......................................... $ 625,014
8,466 Banco Popular Espanol SA............................... 608,971
-----------
1,233,985
-----------
Utilities--Telecommunications (1.4%)
11,405 Telefonica de Espana SA (b)............................ 549,388
-----------
1,783,373
-----------
Sweden (1.2%)
Retail--Specialty Stores (1.2%)
19,008 Hennes & Mauritz AB, Class B........................... 469,513
-----------
Switzerland (4.2%)
Insurance (0.9%)
571 Schweizerische Lebensversicherungs-und Rentenanstalt... 345,629
-----------
Pharmaceuticals (3.3%)
457 Novartis AG............................................ 667,308
67 Roche Holding AG-Genussshein........................... 688,710
-----------
1,356,018
-----------
1,701,647
-----------
United Kingdom (17.3%)
Broadcasting/Cable (1.5%)
65,408 British Sky Broadcasting Group PLC..................... 606,759
-----------
Chemicals--General (1.4%)
56,080 Imperial Chemical Industries PLC....................... 554,261
-----------
Food Distributors, Supermarkets & Wholesalers (1.8%)
159,200 Somerfield PLC......................................... 740,294
-----------
Health & Personal Care (2.0%)
119,556 Reed International PLC................................. 803,765
-----------
Insurance (1.6%)
50,852 Allied Zurich PLC...................................... 639,260
-----------
Pharmaceuticals (2.8%)
40,431 Glaxo Wellcome PLC..................................... 1,122,947
-----------
Transportation (2.0%)
39,629 Railtrack Group PLC.................................... 810,200
-----------
Utilities--Telecommunications (4.2%)
84,803 Vodafone Group PLC..................................... 1,676,284
-----------
6,953,770
-----------
</TABLE>
Continued

-32-
<PAGE>

MMA PRAXIS MUTUAL FUNDS
International Fund

Schedule of Portfolio Investments, Continued
June 30, 1999 (Unaudited)

<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
United States (0.5%)
Pharmaceuticals (0.5%)
4,530 Gedeon Richter GDR (c)................................. $ 196,747
-----------
Total Common Stocks (Cost $32,777,831) 39,842,577
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Rights (0.0%)
Portugal (0.0%)
Telecommunications (0.0%)
6,006 Portugal Telecom SA.................................... $ 62
-----------
Total Rights (Cost $0) 62
-----------
Total Investments (Cost $32,777,831) (a)--98.9% 39,842,639
Other assets in excess of liabilities--1.1% 462,114
-----------
Total Net Assets--100.0% $40,304,753
===========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:

<TABLE>
<S> <C>
Unrealized
appreciation........ $ 8,276,312
Unrealized
depreciation........ (1,211,504)
-----------
Net unrealized
appreciation........ $ 7,064,808
===========
</TABLE>
(b) Represents non-income producing securities.
(c) 144a security which is restricted as to resale to institutional investors.
* On July 17, 1999, Royal Dutch Petroleum Company was removed from the
Portfolio due to continuing human rights and environmental concerns.
ADR--American Depository Receipt
GDR--Global Depository Receipt
PLC--Public Liability Co.

Foreign Currency Contracts:
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Market Appreciation/
Date Value Value Depreciation
-------- -------- -------- -------------
<S> <C> <C> <C> <C>
Short Contracts:
Swiss Franc......................... 7/2/99 $220,218 $219,710 $ 508
-------- -------- -----
Total Short Contracts............... 220,218 219,710 508
Long Contracts:
British Pound....................... 7/1/99 2,813 2,799 (14)
Euro Dollar......................... 7/30/99 64,618 64,336 (282)
-------- -------- -----
Total Long Contracts................ 67,431 67,135 (296)
-----
Net unrealized gain from foreign
currency contracts.................... $ 212
=====
</TABLE>
See notes to financial statements.

-33-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements
June 30, 1999
(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 27, 1993, as amended and restated
December 1, 1993, and is registered under the Investment Company Act of
1940, as amended (the "1940 Act"). The Company currently consists of the
Intermediate Income Fund, the Growth Fund, and the International Fund
(individually a "Fund", collectively "the Funds"). The Intermediate Income
Fund and the Growth Fund commenced operations January 4, 1994 and the
International Fund commenced operations April 1, 1997. The Funds offer Class
A shares and Class B shares. Prior to May 3, 1999, the Funds were offered in
one class only. On May 3, 1999, the existing shares were designated as Class
B shares and the Funds commenced offering Class A shares.

The primary investment objective of the Intermediate Income Fund is to seek
current income with capital appreciation as a secondary objective. Under
normal market conditions, the Fund will invest substantially all, but in no
event less than 65%, of its total assets in fixed income securities. The
primary investment objective of the Growth Fund is to seek capital
appreciation with current income as a secondary objective. The Fund invests
primarily in undervalued securities of medium to large capitalization
companies. Under normal market conditions, the Growth Fund will invest
substantially all, but in no event less than 65%, of its total assets in
equity securities. The primary investment objective of the International
Fund is capital appreciation, with current income as a secondary objective.
Under normal market conditions, this Fund will invest at least 65% of the
value of its total assets in equity securities of foreign 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:

Securities are valued at 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. The Funds use various independent
pricing services to value most of their investments. If market quotations
are not available, the securities will be valued by a method which the
Board of Trustees believes accurately reflects fair value.

Securities Transactions and Related Income:

Security transactions are accounted for on the trade 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. Interest income

Continued

-34-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements, Continued
June 30, 1999
(Unaudited)

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.

Foreign Currency Translation:

The market value of investment securities, other assets and liabilities of
the International Fund denominated in foreign currencies are translated
into U.S. dollars at the current exchange rate at the close of each
business day. Purchases and sales of securities, income receipts and
expense payments are translated into U.S. dollars based at the exchange
rate on the date of the transaction.

The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized/unrealized gain
(loss) from investments.

Reported net realized foreign exchange gains or losses arise from sales
and maturities of short-term securities, sales of foreign currencies,
currency gains or losses realized between the trade and settlement dates
on securities transactions, the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the Fund's
books, and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes
in the value of assets and liabilities including investments in securities
at fiscal year end, resulting from changes in the exchange rate.

Forward Foreign Currency Contracts:

The International Fund may enter into forward foreign currency exchange
contracts for the purchase or sale of specific foreign currencies at a
fixed price on a future date. Risks may arise upon entering these
contracts for the potential inability of counterparties to meet the terms
of their contracts and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar. The International Fund will
enter into forward contracts as a hedge against specific transactions or
portfolio positions to protect against adverse currency movements. The
forward foreign currency exchange contracts are adjusted by the daily
exchange rate of the underlying currency and any gains or losses are
recorded for financial statement purposes as unrealized until the contract
settlement date, at which time the International Fund records a realized
gain or loss equal to the difference between the value of the contract at
the time it was opened and the value at the time it was closed.

Dividends and Distributions:

Dividends from net investment income are declared and paid monthly for the
Intermediate Income Fund. Dividends from net investment income are
declared and paid twice a year for the Growth Fund and the International
Fund. Distributable net realized capital gains, if any, are declared and
distributed at least annually.

The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary
or permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net assets
based on their federal tax-basis treatment; temporary differences do not
require reclassification.

Continued

-35-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements, Continued
June 30, 1999
(Unaudited)

Dividends and distributions to shareholders which exceed net investment
income and net realized capital gains for financial reporting purposes but
not for tax purposes are reported as dividends in excess of net investment
income or distributions in excess of net realized gains. To the extent
they exceed net investment income and net realized gains for tax purposes,
they are reported as distributions of capital.

Federal Income Taxes:

It is each Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute timely, all of its net investment company taxable income and
net capital gains to shareholders. Therefore, no federal income tax
provision is required. (Under the applicable foreign tax law, a
withholding tax may be imposed on interest, dividends and capital gains
earned on foreign investments at various rates. Where available, the
International Fund will file for claims on foreign taxes withheld.)

Organization Costs:

Costs incurred by the Funds in connection with their 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 their custody fees and expenses for the amounts of interest
earned on such uninvested cash balance. For financial reporting purposes
for the six months ended June 30, 1999, custodian fees and expenses paid
by third parties were $2,361 and $2,824 for the Intermediate Income Fund
and the Growth Fund, respectively. There was no effect on net investment
income. The Funds could have invested such cash amounts in an income
producing asset if they had not agreed to a reduction of fees or expenses
under the expense offset arrangement with their custodian.

Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses of the Company are
prorated to the Funds on the basis of relative net assets.

3. Purchases and Sales of Securities:

Purchases and sales of securities (excluding short-term securities) for the
six months ended June 30, 1999 were as follows:

<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Intermediate Income Fund.............................. $19,291,787 $11,881,897
Growth Fund........................................... 61,602,071 55,759,186
International Fund.................................... 16,163,361 8,208,928
</TABLE>

Continued

-36-

<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements, Continued
June 30, 1999
(Unaudited)

4. Related Party Transactions:

Menno Insurance Service, Inc. d/b/a MMA Capital Management, (the "Adviser")
(a separate corporate entity controlled by Mennonite Mutual Aid, 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 daily net assets of each of the Funds as
follows; 0.50% for the Intermediate Income Fund, 0.74% for the Growth Fund
and 0.90% for the International Fund. Oechsle International Advisors, LLC,
serves as the sub-adviser to the International 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 administrator. Under the terms of the
administration agreement, BISYS receives fees that are computed daily at an
annual rate of 0.15% of each Fund's average net assets, with an annual
minimum of $50,000 per Fund.

BISYS serves as the Funds' distributor. The Company has adopted a
Distribution Services Plan for Class A Shares (the "Class A Plan") and a
Distribution Services Plan for Class B Shares (the "Class B Plan"), each
pursuant to Rule 12b-1 under the 1940 Act. Under the Class A Plan, each Fund
pays BISYS, as the Fund's distributor, an aggregate fee not to exceed on an
annual basis 0.25% of the average daily net assets of such Fund's Class A
Shares for distribution related activities. The aggregate fee includes not
more than 0.25% of the average daily net assets of the Fund's Class A Shares
to be used for general distribution purposes and up to 0.25% of the average
daily net assets of the Fund's Class A Shares to be used as a service fee.
Under the Class B Plan, each Fund pays BISYS an aggregate fee not to exceed
on an annual basis 1.00% of the average daily net assets of such Fund's
Class B Shares for distribution related activities. The aggregate fee
includes not more than 0.75% of the average daily net assets of the Fund's
Class B Shares to be used for general distribution purposes and up to 0.25%
of the average daily net assets of the Fund's Class B Shares to be used as a
service fee. General distribution purposes include commission payments to
broker-dealers, advertising, sales literature and other forms of marketing
activities, functions and expenses. Payments under each of the Class A Plan
and the Class B Plan may include payments to financial institutions and
broker-dealers, including the Adviser, BISYS, and any of their affiliates or
subsidiaries.

BISYS Ohio serves the Fund's as transfer agent and fund accountant. For
transfer agent services, BISYS Ohio is entitled to receive fees based upon
the number of shareholders with a specified minimum per fund. 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. For the six months ended
June 30, 1999, BISYS Ohio received fees of $31,298; $99,618; $36,600; from
the Intermediate Income Fund, the Growth Fund, and the International Fund,
respectively, for these services.

Class A shares of the Funds are subject to an initial sales charge imposed
at the time of purchase in accordance with the Funds' prospectus. Class B
shares are subject to a Contingent Deferred Sales Charge (CDSC) on
redemptions of Class B shares made within five years of purchase. 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

Continued

-37-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements, Continued
June 30, 1999
(Unaudited)

redemption. The CDSC on Class B shares will not be imposed on increases
above the NAV at the time of purchase or shares purchased through the
reinvestment of dividends from net investment income or capital gains. For
the six months ended June 30, 1999, the Distributor received approximately
$116,580 from commissions earned on sales of Class A shares and on
redemptions of Class B shares of the Funds, of which the Distributor
reallowed $114,572 to dealers of the Funds' shares.

Certain officers of the Company are affiliated with BISYS and/or the
Adviser. Such officers are not paid any fees directly by the Funds for
serving as officers of the Company.

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, 1999:

<TABLE>
<CAPTION>
Intermediate
Income Growth International
Fund Fund Fund
------------ -------- -------------
<S> <C> <C> <C>
Investment advisory fee waivers........... $38,156 $112,438 $25,596
Distribution Plan fee waivers............. 115,936 302,648 91,113
Expenses reimbursed....................... 77,105 53,195 38,231
------- -------- -------
Total.................................... 231,197 468,281 154,940
</TABLE>

Continued

-38-

<PAGE>

MMA PRAXIS MUTUAL FUNDS

Notes to Financial Statements, Continued
June 30, 1999
(Unaudited)

5. Capital Share Transactions:

Transactions in capital shares for the Company were as follows:

<TABLE>
<CAPTION>
Intermediate
Income Growth International
Fund Fund Fund
-------------------------- -------------------------- --------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
June 30, December 31, June 30, December 31, June 30, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Capital Transactions:
Class A Shares:
Proceeds from shares
issued................ $ 16,649,338 $ -- $ 8,517,375 $ -- $ 17,965,238 $ --
Dividends reinvested... 122 -- -- -- -- --
Cost of shares
redeemed.............. -- -- -- -- (765,000) --
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
from Class A Share
transactions.......... $ 16,649,460 $ -- $ 8,517,375 $ -- $ 17,200,238 $ --
============ =========== ============ ============ ============ ===========
Class B Shares:
Proceeds from shares
issued................ $ 8,275,512 $ 9,897,569 $ 13,863,428 $ 37,346,093 $ 9,522,991 $10,642,995
Dividends reinvested... 720,201 1,065,580 2,514 10,073,822 109,962 100,821
Cost of shares
redeemed.............. (18,329,160) (2,470,626) (15,253,467) (10,651,224) (19,973,779) (1,290,098)
------------ ----------- ------------ ------------ ------------ -----------
Change in net assets
from Class B Share
transactions.......... $ (9,333,447) $ 8,492,523 $ (1,367,525) $ 36,768,691 $(10,340,826) $ 9,453,718
============ =========== ============ ============ ============ ===========
Share Transactions:
Class A Shares:
Issued................. 1,712,856 -- 489,510 -- 1,285,987 --
Reinvested............. 12 -- -- -- -- --
Redeemed............... -- -- -- -- (54,839) --
------------ ----------- ------------ ------------ ------------ -----------
Change in Class A
Shares................ 1,712,868 -- 489,510 -- 1,234,148 --
============ =========== ============ ============ ============ ===========
Class B Shares:
Issued................. 828,060 976,210 855,056 2,319,601 704,024 360,904
Reinvested............. 72,001 105,231 170 687,391 8,426 8,374
Redeemed............... (1,881,434) (243,888) (907,310) (687,305) (1,436,391) (105,160)
------------ ----------- ------------ ------------ ------------ -----------
Change in Class B
Shares................ (981,373) 837,553 (52,084) 2,319,687 (723,941) 764,118
============ =========== ============ ============ ============ ===========
</TABLE>

6. Special Meeting of Shareholders (Unaudited):

A special meeting of shareholders of the International Fund was held on
August 17, 1998 to consider a proposal. On June 10, 1998, the record date
for the meeting, the Fund had 1,942,446 shares outstanding, of which
1,458,946 were represented at the meeting. The votes recorded at the
meeting, on the proposal, was as follows:

Proposal 1 Approval of a new Sub-Investment Advisory Agreement for the Fund.

<TABLE>
<S> <C>
Voted "For"......................................................... 1,443,771
Voted "Against"..................................................... 162
Voted "Abstain"..................................................... 15,013
</TABLE>

-39-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
Intermediate
Income Fund--
Class A Shares
-----------------
May 12, 1999 to
June 30, 1999 (a)
-----------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period......................... $ 9.88
-------
Investment Activities
Net investment income (loss)................................ 0.04
Net realized and unrealized gains (losses) from investment
transactions............................................... (0.09)
-------
Total from Investment Activities............................. (0.05)
-------
Distributions
Net investment income....................................... (0.09)
-------
Total Distributions.......................................... (0.09)
-------
Net Asset Value, End of Period............................... $ 9.74
=======
Total Return (excludes sales charge)......................... (0.49)%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)............................. $16,683
Ratio of expenses to average net assets..................... 0.71%(c)
Ratio of net investment income to average net assets........ 5.76%(c)
Ratio of expenses to average net assets*.................... 1.45%(c)
Ratio of net investment income to average net assets*....... 5.02%(c)
Portfolio Turnover (d)...................................... 27.57%
</TABLE>
- -------
* During the period, certain expenses were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.

(a) Period from commencement of operations.

(b) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued and represents the
period January 1, 1999 to June 30, 1999.

See notes to financial statements.

-40-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
Intermediate Income Fund--Class B Shares
----------------------------------------------------------------------------------
Six Months Year Year Year Year January 4,
Ended Ended Ended Ended Ended 1994 to
June 30, December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995 1994 (a)
----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.17 $ 10.01 $ 9.84 $ 10.17 $ 9.14 $ 10.00
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.28 0.54 0.55 0.54 0.53 0.45
Net realized and
unrealized gains
(losses) from
investment
transactions.......... (0.46) 0.17 0.17 (0.33) 1.03 (0.86)
------- ------- ------- ------- ------- -------
Total from Investment
Activities.............. (0.18) 0.71 0.72 0.21 1.56 (0.41)
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.25) (0.54) (0.55) (0.54) (0.53) (0.45)
Net realized gains..... -- (0.01) -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions..... (0.25) (0.55) (0.55) (0.54) (0.53) (0.45)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 9.74 $ 10.17 $ 10.01 $ 9.84 $ 10.17 $ 9.14
======= ======= ======= ======= ======= =======
Total Return (excludes
redemption charge)..... (1.77)%(b) 7.29% 7.60% 2.22% 17.47% (4.09)%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000).......... $31,041 $42,388 $33,339 $27,568 $23,470 $17,849
Ratio of expenses to
average net assets.... 1.13%(c) 1.10% 1.10% 1.10% 1.10% 1.10%(c)
Ratio of net investment
income to average net
assets................ 5.27%(c) 5.37% 5.65% 5.50% 5.49% 4.96%(c)
Ratio of expenses to
average net assets*... 2.16%(c) 2.37%** 2.62%** 2.52%** 2.64% 2.83%(c)
Ratio of net investment
income to average net
assets*............... 4.24%(c) 4.10% 4.15% 4.15% 3.95% 3.23%(c)
Portfolio Turnover (d). 27.57% 33.89% 60.05% 30.25% 31.57% 4.95%
</TABLE>
- -------
* During the period, certain expenses were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.

** During the years ended December 31, 1998, 1997 and 1996 the Intermediate
Income Fund received credits from its custodian for interest earned on
uninvested cash balances which were used to offset custodian fees. 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) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.

See notes to financial statements.

-41-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
Growth Fund--
Class A Shares
-----------------
May 12, 1999 to
June 30, 1999 (a)
-----------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period......................... $17.39
------
Investment Activities
Net realized and unrealized gains (losses) from
investment transactions.................................... 0.38
------
Total from Investment Activities............................. 0.38
------
Distributions
Total Distributions.......................................... --
------
Net Asset Value, End of Period............................... $17.77
======
Total Return (excludes sales charge)......................... 2.19%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)............................. $8,696
Ratio of expenses to average net assets..................... 1.02%(c)
Ratio of net investment income to average net assets........ 1.40%(c)
Ratio of expenses to average net assets*.................... 2.77%(c)
Ratio of net investment income to average net assets*....... (0.35)%(c)
Portfolio Turnover (d)...................................... 38.65%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Period from commencement of operations.

(b) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued and represents the
period January 1, 1999 to June 30, 1999.

See notes to financial statements.

-42-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
Growth Fund--Class B Shares
-----------------------------------------------------------------------------------
For the
six months Year Year Year Year January 4,
ended Ended Ended Ended Ended 1994 to
June 30, December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995 1994 (a)
----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 15.29 $ 15.72 $ 13.57 $ 12.07 $ 9.74 $ 10.00
-------- -------- -------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.04) -- 0.04 0.07 0.10 0.09
Net realized and
unrealized
gains (losses) from
investment transactions. 2.50 0.84 3.86 1.85 3.12 (0.07)
-------- -------- -------- ------- ------- -------
Total from Investment
Activities.............. 2.46 0.84 3.90 1.92 3.22 0.02
-------- -------- -------- ------- ------- -------
Distributions
Net investment income... -- -- (0.04) (0.07) (0.10) (0.09)
Net realized gains...... -- (1.27) (1.71) (0.35) (0.79) (0.19)
-------- -------- -------- ------- ------- -------
Total Distributions...... -- (1.27) (1.75) (0.42) (0.89) (0.28)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 17.75 $ 15.29 $ 15.72 $ 13.57 $ 12.07 $ 9.74
======== ======== ======== ======= ======= =======
Total Return (excludes
redemption charge)...... 16.09%(b) 5.96% 29.15% 15.87% 33.32% 0.27%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $158,083 $136,976 $104,309 $58,907 $30,906 $18,009
Ratio of expenses to
average net assets..... 1.75%(c) 1.69% 1.72% 1.74% 1.75% 1.75%(c)
Ratio of net investment
income to average net
assets................. (0.44)%(c) (0.02)% 0.22% 0.61% 0.90% 1.02%(c)
Ratio of expenses to
average net assets*.... 2.38%(c) 2.53%** 2.66%** 2.55%** 2.81% 3.25%(c)
Ratio of net investment
income to average net
assets*................ (1.07)%(c) (0.86)% (0.71)% (0.17)% (0.16)% (0.48)%(c)
Portfolio Turnover (d).. 38.65% 91.32% 53.26% 33.98% 48.91% 35.22%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Period from commencement of operations.

(b) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.

See notes to financial statements.

-43-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
International Fund--
Class A Shares
--------------------
May 12, 1999 to
June 30, 1999 (a)
--------------------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period...................... $ 13.76
-------
Investment Activities
Net realized and unrealized gains (losses) on
investments............................................. 0.15
-------
Total from Investment Activities.......................... 0.15
-------
Distributions
Total Distributions....................................... --
-------
Net Asset Value, End of Period............................ $ 13.91
=======
Total Return (excludes sales charge)...................... 1.09%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).......................... $17,166
Ratio of expenses to average net assets.................. 1.31%(c)
Ratio of net investment income to average net assets..... (1.14)%(c)
Ratio of expenses to average net assets*................. 3.48%(c)
Ratio of net investment income to average net assets*.... (3.31)%(c)
Portfolio Turnover (d)................................... 23.35%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Period from commencement of operations.

(b) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued and represents the
period January 1, 1999 to June 30, 1999.

See notes to financial statements.

-44-
<PAGE>

MMA PRAXIS MUTUAL FUNDS

Financial Highlights

<TABLE>
<CAPTION>
International Fund--Class B Shares
------------------------------------------
For the six Year April 1, 1997
months ended Ended through
June 30, December 31, December 31,
1999 1998 1997 (a)
------------ ------------ -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................. $ 13.05 $ 10.62 $ 10.00
------- ------- -------
Investment Activities
Net investment income (loss)...... (0.07) (0.02) (0.05)
Net realized and unrealized gains
(losses) on investments.......... 0.93 2.56 0.69
------- ------- -------
Total from Investment Activities... 0.86 2.54 0.64
------- ------- -------
Distributions
Net investment income............. -- (0.10) --
Net realized gains................ -- (0.01) (0.02)
------- ------- -------
Total Distributions................ -- (0.11) (0.02)
------- ------- -------
Net Asset Value, End of Period..... $ 13.91 $ 13.05 $ 10.62
======= ======= =======
Total Return (excludes redemption
charge)............................ 6.59%(b) 23.98% 6.40%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)... $23,139 $31,163 $17,245
Ratio of expenses to average net
assets........................... 2.00%(c) 1.99% 2.00%(c)
Ratio of net investment income to
average net assets............... (0.08)%(c) (0.32)% (0.93)%(c)
Ratio of expenses to average net
assets*.......................... 2.84%(c) 3.19% 4.29%(c)
Ratio of net investment income to
average net assets*.............. (0.92)%(c) (1.52)% (3.21)%(c)
Portfolio Turnover (d)............ 23.35% 47.19% 51.46%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.

(a) Period from commencement of operations.

(b) Not annualized.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.

See notes to financial statements.

-45-
<PAGE>

Investment Adviser
MMA Capital
Management
Post Office Box 483
Goshen, Indiana 46527

Investment Sub-
Adviser
(International Fund
only)
Oechsle International
Advisors, LLC
One International
Place
Boston, Massachusetts
02110

Administrator and
Distributor
BISYS Fund Services
3435 Stelzer Road
Columbus, Ohio 43219

Legal Counsel
Dechert Price &
Rhoads
1775 Eye Street, NW
Washington, DC 20006

Auditors
PricewaterhouseCoopers
L.L.P.
100 East Broad Street
Columbus, Ohio 43215

Transfer Agent
BISYS Fund Services
Ohio, Inc.
3435 Stelzer Road
Columbus, Ohio 43219

Semi-Annual Report
for the six months ended June 30, 1999

MMA Praxis Mutual Funds

Intermediate Income Fund
Growth Fund
International Fund
[MMA LOGO]

This report is for the
information of shareholders of
MMA Praxis Mutual Funds, but
it may also be used as sales
literature when preceded or
accompanied by the current
prospectus, which gives
details about charges,
expenses, investment
objectives, and operating
policies of the Funds. Read
the prospectus carefully
before investing or sending
money.

8/99
SOY INK
RECYCLED PAPER