<PAGE>
Semi-Annual Report
for the six months ended June 30, 2000
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
U.S. stocks rose in the first six months, despite a modest pickup in inflation
and a rise in interest rates, both of which did some damage to bond prices.
Earlier in the year, the stock market was dominated by optimism about the
long-term outlook for technology, telecommunications and media companies.
However, sentiment quickly shifted and the technology and telecommunication
groups fell sharply, giving back some of the spectacular gains achieved in
1999.
The following are some of the highlights from the first six months of 2000:
. While the Dow Jones Industrial Average was down 8.5 percent for the first
half of 2000, the broader indexes have barely dipped into negative
territory. The Standard & Poor's 500 Stock Index lost 0.4 percent and the
technology driven Nasdaq Composite Index fell just a bit more, losing 2.5
percent.
. However, these six-month return numbers belie a darker story to the first
six months of 2000. The Dow Jones tumbled 10.9 percent from its high, the
S&P 500 fell 4.3 percent and the Nasdaq crumbled 21 percent from its March
10th peak. Clearly, the markets experienced volatility of the like unseen
for many years.
. A light began to emerge in the dark tunnel for bond investors. Although
bonds performed dismally in 1999, during the first six months of 2000 bond
returns have improved, thanks to a growing belief among investors that
Federal Reserve interest rate increases may be coming to an end. With the
help of the U.S. Government's decision to buy back as much as $30 billion of
federal debt this year, U.S. Treasury bonds produced unusually strong
results year-to-date.
. On the international front, investors were clearly rattled by a potential
slow down in global growth and concerns about extended valuations of the
stocks in the technology, media and telecommunications sector. The Morgan
Stanley Capital International (MSCI) Europe, Australasia, and Far East
(EAFE) Index was down 4.0 percent year-to-date through June 30.
. Small-cap stocks and mid-cap stocks outperformed large-caps while growth
stocks outperformed value stocks. The Standard & Poor's SmallCap 600 Index
has returned nearly seven percent through the first six months of this year.
Its counterpart, the Standard & Poor's MidCap 400 Index has gained almost
nine percent year-to-date. Both of these indicators have outperformed the
S&P 500 Index, by substantial margins. Looking at investment style, the
Standard & Poor's/BARRA Growth Index has returned 2.6 percent year-to-date
versus its value counterpart with a loss of 4.1 percent.
. Rationality returned to the stock market as investors focused on companies
current earnings, as opposed to projected gains many years into the future.
Nasdaq companies without earnings in 1999 enjoyed an average price gain of
115 percent versus only a 50 percent advance for companies with earnings.
The tide has turned this year in favor of real business models that are
already profitable. Companies expected to post earnings in 2000 are up about
10 percent year-to-date while those projecting losses are down 11 percent on
average. Speculation has given way to old-fashioned conservatism.
As seen in the aftermath of the October 1987 crash, the market employs self-
corrective measures to reduce speculative excesses. Investors who had chased
stocks to ridiculous valuations and bought stocks on margin (borrowing money
to purchase stocks) have painfully discovered the importance of
diversification, risk management, and that, in the
-1-
<PAGE>
Message
From
The
President
--continued
long run, investment fundamentals do matter. Despite the pain absorbed, the
purging of market excesses facilitated by the work of Federal Reserve Chairman
Alan Greenspan's strong medicine has, in fact, created a stronger foundation
for future advances. When these advances may occur is anyone's guess. However,
with a little luck, the economy may in fact realize a "soft landing" which
could set the stage for further advances, though presumably much more in line
with historical averages. Our counsel to investors, as always, is to ignore
the daily noise of market volatility and stick with a long-term investment
strategy that is consistent with your investment goals, time horizon and risk
tolerance.
MMA Praxis Growth Fund
The MMA Praxis Growth Fund generated a return of 2.14 percent/1/ for the first
six months of 2000. While this may disappoint investors who are used to
double-digit returns from stock market investments, on a relative basis this
performance is very competitive. As noted in the introductory overview, our
passive benchmark, the S&P 500, was down 0.4 percent. The average large-cap
blended investment style mutual fund was up 0.51 percent through June
according to mutual fund tracker Morningstar. For the 12-month period ending
June 30, your fund's performance landed us in the top 91 percentile, according
to Morningstar/2/. Please refer to the investment manager's report starting on
page seven for an in-depth discussion of those factors that contributed to the
outperformance.
I am pleased to introduce you to the new portfolio management team of the MMA
Praxis Growth Fund. Chad Horning and John Nussbaum assumed this role effective
May 12. Chad Horning previously served as an equity analyst for the fund. He
is a graduate of Goshen College and the graduate school of the University of
Maryland where he received a master's degree in economics. Prior to joining
MMA, Chad served as an international development consultant and economic
analyst with the United States Agency for International Development. Chad is a
Level II candidate for the chartered financial analyst designation.
John Nussbaum has served as assistant portfolio manager for MMA Capital
Management since 1988, and has provided stock research for the MMA Praxis
Growth Fund since its inception in 1994. He is a chartered financial analyst
and certified public accountant. He is a graduate of Eastern Mennonite
University and received his M.B.A. from Ohio State University.
This management team also receives research support from Dale Snyder, who
joined MMA earlier this year. Dale is a Goshen College graduate and received
his M.B.A. from Indiana University. Dale brings a wealth of experience from a
10-plus year career as an account executive and marketing manager with a major
company in the transportation industry.
I am confident that this new team has the talent, work ethic, sense of
teamwork and commitment to help generate solid financial and social returns
for our shareholders.
MMA Praxis Intermediate Income Fund
The MMA Praxis Intermediate Income Fund is up 2.17 percent/1/ through the
second quarter. The fund lagged its benchmark (Lehman Brothers Aggregate Bond
Index) by approximately 1.80 percent and landed in the 86 percentile,
according to Morningstar/2/, for the
-------
/1/Returns are for Class B Shares without the contingent deferred sales
charge. Please refer to each funds individual performance overview section for
complete performance history.
/2/For the 12-month period, three-year period and 5-year period ended 6/30/00
the Growth Fund (Class B Shares) ranked 825 out of 909, 552 out of 606 and 337
out of 375 large cap blend equity funds, respectively. For the 12-month
period, three-year period and 5-year period ended 6/30/00 the Intermediate
Income Fund (Class B Shares) ranked 470 out of 553, 345 out of 434 and 281 out
of 323 intermediate-term bond funds, respectively.
-2-
<PAGE>
Message
From
The
President
--continued
12-month period ending June 30. Duration and strong performance by Treasury
securities (which MMA Praxis has chosen not to own by its socially responsible
policy) accounted for the majority of the underperformance. For a more
complete analysis of your fund's performance, refer to the portfolio manager's
commentary starting on page five.
MMA Praxis International Fund+
The International Fund is down 7.10 percent/1/ through the first two quarters
of this year. Major price corrections in TMT stocks (technology, media and
telecommunications), which were heavily owned by the fund, accounted for a
significant percent of this loss of principal. The MSCI EAFE Index was off
4.06 percent. Against its foreign stock mutual fund peer group, this
performance places the fund in the 45 percentile, according to Morningstar/2/,
for the 12-month period ended June 30. However, the one- and three-year return
numbers are still well above average.
In April, the fund reached its three-year anniversary date. After three years,
Morningstar assigns a star rating that measures the risk-adjusted return of
mutual funds. We are extremely pleased to announce that Morningstar has
awarded an overall four-star rating, out of 1148 international equity funds,
to MMA Praxis International Fund Class B Shares as of June 30/3/. This makes
your fund the only four star rated socially responsible foreign stock fund
available to investors.
Please refer to page ten for an in-depth commentary on the fund's performance
thus far in 2000.
-------
+International investing involves increased risk and volatility.
/1/Returns are for Class B Shares without the contingent deferred sales
charge. Please refer to each funds individual performance overview section for
complete performance history.
/2/For the 12-month period and three-year period ended 6/30/00 the
International Fund (Class B Shares) ranked 303 out of 677 and 124 out of 476
foreign stock funds, respectively.
/3/Morningstar ratings reflect historical risk-adjusted performance as of
6/30/00. The ratings are subject to change every month. Past performance is no
guarantee of future results. Morningstar ratings are calculated from a funds
3-, 5- and 10-year returns (with fee adjustments) in excess of 90-day Treasury
Bill returns and a risk factor that reflects fund performance below 90-day
Treasury Bill returns. The fund received 4 stars for the 3-year period out of
1148 international equity funds and was not ranked for the 5- or 10-year
period. The overall rating is a weighted average of the 3-, 5- and 10-year
rating (where applicable). Ten percent of the funds in an investment category
receive 5 stars, 22.5% receive 4 stars.
-3-
<PAGE>
Message
From
The
President
--continued
Conclusion
I encourage you to read Mark Regier's update on MMA's rapidly expanding
socially responsible investing activities. Mark's report underscores the
commitment we have to deepen and broaden the impact social investing has for
MMA Praxis Mutual Funds.
The first six months provide a classic text book case for maintaining a
diversified portfolio. We believe that by spreading your investments across
all four MMA Praxis Funds (don't forget MMA Praxis Money Market Fund)/1/, one
can manage the inevitable volatility of the financial markets and maintain
focus on reaching longer-term investment goals.
Thank you for choosing MMA Praxis Mutual Funds to assist you in reaching your
financial planning objectives.
Sincerely,
/s/ John L. Liechty
John L. Liechty, ChFC
President, MMA Praxis Mutual Funds
/1/ The MMA Praxis Money Market Fund represents the MMA Praxis shares of the
Pax World Money Market Fund, Inc.
-4-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Intermediate Income Fund
The first half of 2000 was another difficult period for most sectors of the
bond market. Treasury bonds did very well because of the buyback news that
came out in January. This caused a huge rally in treasuries, but left
everything else behind. As a result, the yield premium for owning corporate
bonds versus Treasury bonds widened to record levels. By June 30, investment
grade corporate bonds returned 1 1/2 to 2 percent more than Treasuries, which
is great going forward, but made for a tough first half.
In the first half, the fund returned 2.17 percent for holders of Class B
Shares, which lagged the Lehman Brothers Aggregate Bond benchmark return of
3.99 percent and the Lipper Intermediate Investment Grade Bond Fund Average
return of 3.06 percent.
Our best performing bonds were our mortgage-backed securities. No one security
was unusually good. Our weaker performers were large corporations like Dean
Foods and Weyerhaeuser where acquisitions were made. In both cases, the
companies used debt to make acquisitions which caused the yields to rise more
than otherwise.
In general, any bonds but Treasuries struggled as the Federal Reserve pushed
up rates and volatility rose. We had expected better performance from
corporates and mortgages, but the poor overall environment kept all bonds at
very high yields.
Our social concerns led us to invest in Dollar General, due to its outstanding
literacy program and comprehensive life and job skills training programs; and
WorldCom, which has demonstrated a commitment to renewable energy resources
and ranks high for employing and accommodating people with disabilities. In
addition, WorldCom gave away $3.75 million in 1999 to organizations such as
Habitat for Humanity, the American Cancer Society, the Special Olympics, and
the Children's Miracle Network.
Outlook
We expect better results in the second half as slower economic growth should
lessen concerns about more Fed tightening. We do not foresee anything that
will help Treasuries do unusually well, so the higher yield from our portfolio
should begin to reflect through. As it does, we should begin to have better
returns relative to our benchmark.
Delmar King
MMA Praxis Intermediate Income Fund Manager
-5-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Intermediate Income Fund (continued)
[LINE GRAPH]
Intermediate Income Fund
Value of a $10,000 Investment
1/4/94 to 6/30/00
Lehman Brothers Lipper Intermediate
Aggregate Investment Grade
Class A* Class B Bond Index Bond Fund Average
1/31/94 9,687.63 10,065.40 10,000.00 10,000.00
6/30/94 9,198.49 9,557.20 9,484.77 9,609.35
12/31/94 9,231.03 9,590.97 9,578.83 9,679.42
6/30/95 10,280.91 10,681.89 10,675.07 10,677.13
12/31/95 10,843.71 11,266.63 11,348.63 11,336.27
6/30/96 10,618.10 11,032.11 11,209.83 11,182.69
12/31/96 11,084.38 11,516.54 11,758.84 11,725.30
6/30/97 11,325.96 11,767.58 12,124.26 12,070.00
12/31/97 11,927.52 12,392.58 12,897.59 12,755.34
6/30/98 12,345.48 12,826.90 13,402.74 13,235.87
12/31/98 12,797.42 13,296.46 14,016.30 13,759.39
6/30/99 12,581.23 13,060.63 13,822.21 13,564.63
12/31/99 12,590.91 13,043.59 13,899.91 13,624.92
6/30/2000 12,837.26 13,326.70 14,452.98 14,074.00
This chart represents historical performance of a hypothetical investment of
$10,000 in the Intermediate Income Fund from 1/4/94 to 6/30/00, and represents
the reinvestment of dividends and capital gains in the fund.
Average Annual Total Return
as of 6/30/00
<TABLE>
<CAPTION>
Aggregate Since
6 Month 1 Year 3 Year 5 Year Inception
--------- ------- ------ ------ ---------
<S> <C> <C> <C> <C> <C>
Class A 2.24% 2.32% 4.36% 4.60% 4.59%
Class A* (1.61)% (1.52)% 3.04% 3.80% 3.97%
Class B 2.17% 2.04% 4.23% 4.52% 4.53%
Class B** (1.80)% (1.82)% 3.64% 4.36% 4.53%
</TABLE>
* Reflects maximum sales charge of 3.75%
** Reflects maximum applicable contingent deferred sales charge of
4.00%
Past performance is not indicative of future results. The
investment return and principal value will fluctuate so
that an investors' shares, when redeemed, may be worth more
or less than the original cost.
Class A Shares of this fund were not in existence prior to
5/12/99. Class A Shares performance calculated for any
period prior to 5/12/99 is based on the performance of
Class B Shares since inception 1/4/94.
The Lehman Brothers Aggregate Bond Index includes fixed
rate debt issues rated investment grade or higher by
Moody's Investors Services, Inc., Standard and Poor's
Corporation, or Fitch Investors Services, Inc., with at
least one year to maturity. This index is for illustrative
purposes only and does not reflect the deduction of
expenses associated with a mutual fund, such as investment
management and fund accounting fees. The fund's performance
reflects the deduction of these value-added services. The
Lipper Intermediate Investment Grade Bond Fund Average
includes funds that invest at least 65 percent of assets in
investment grade debt issues (rated in top four grades)
with dollar-weighted average maturities of five to ten
years. The total return set forth reflects a waiver of a
portion of the fund's fees. In such instances, and without
waiver of fees, total return would have been lower. An
investor may not invest directly in any index.
-6-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Growth Fund
"What you see is not what you get"
With the Standard & Poor's 500 Stock Index delivering nearly flat returns for
the period, one might conclude that the U.S. equity markets were an
uninteresting place to invest during the first half of 2000. Not so. The
domestic equity markets provided plenty of excitement in the form of
volatility, driven by abrupt swings in psychology, rising energy prices, and
an active Federal Reserve policy aimed at slowing the economy.
During January and February, it appeared that technology stocks would continue
to command investors' undivided attention, but the trend quickly reversed.
From its peak on March 10 to its trough on May 23, the Nasdaq Composite Index
lost 37 percent of its value. In the wake of the Nasdaq meltdown, other market
sectors that had languished for months came back to life, to the benefit of
the Growth Fund.
While the Nasdaq had regained over half of those losses by the end of the
second quarter, the average stock in the index was still off 40 percent from
its 52-week highs and almost 80 percent of the companies are more than 20
percent off their highs. We believe this correction has provided the market
with some much-needed sanity, though many technology stocks still remain very
overvalued.
While the volatility story mostly played out on the Nasdaq market, the S&P 500
also swung 13 percentage points between its low in February and its high in
March. Also, the S&P 500, the Dow Jones Industrials, and the Nasdaq all
delivered negative half-year performance for the first time since 1994.
Through all of this volatility, the fund performed admirably on the strength
of investments in health care, a few select technology names, energy, and
utilities.
Ups and downs
A few discernable trends developed from amid the volatility. The health care
sector performed very well during the period as investors previously enamored
with technology looked for what they perceived as safe havens with growth
potential. A few of the fund's mid-cap holdings in the sector generated
phenomenal returns as investors made this shift.
We purchased ALZA Corporation, a research-based pharmaceutical company, in
December 1999 after Abbott Labs abandoned a takeover bid for the company. The
takeover fell through primarily because of regulatory concerns about
overlapping product lines and not because Abbott Labs discovered something
wrong with ALZA. The stock had lost nearly 50 percent of its value as a result
of the takeover failure, but we recognized the value of ALZA's strong
portfolio of innovative products that would either drive future earnings or
catch the attention of another suitor. The stock has generated over 75 percent
return since the beginning of the year. Another health care company that
generated strong returns (50 percent for the period) was St. Jude Medical
Inc., a medical products firm that serves the worldwide cardiovascular market.
Despite the retreat of many technology stocks, a few telecommunications names
in the fund generated very strong returns for the period. Altera, maker of
programmable logic devices that allow engineers increased flexibility in the
design process, appreciated over 100 percent over the period. Despite its
incredible run, we believe Altera remains undervalued relative to its nearest
competitor. The fund also enjoyed strong returns from Scientific Atlanta,
maker of advanced telecommunications systems that target the cable industry. A
strong market presence and the news that AOL and Time Warner, Scientific
Atlanta's largest customer, would be merging fueled the stock to over 160
percent returns for the first six months of the year.
Another highlight of performance during the period was stocks in the energy
and utilities sectors. Oil prices rose as OPEC reined in production and
natural gas prices continued to climb as demand outpaced supply in the U.S.
The fund's returns benefited from investments in companies that explore for
petroleum (Anadarko), drill for it (R&B
-7-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Growth Fund (continued)
Falcon, Transocean Offshore) and distribute it (El Paso Energy, Williams Cos).
Each of the companies mentioned generated greater than 30 percent returns
during the period and we expect further appreciation, as we believe the
factors that drove performance will continue for the rest of the year.
In contrast, some technology stocks disappointed us during the quarter.
Electronics for Imaging, a company whose success is based on the move to color
printing in networked office environments, dealt the fund an unexpected blow.
EFI is the dominant player in its market, but a few key customers announced
delays in rolling out products that use EFI's controllers. This short-term
setback caused the stock to decline over 55 percent. EFI is only trading at 15
times future earnings, and in our opinion, is a very inexpensive valuation for
a market-leading technology company with strong growth expectations.
Another stock whose returns disappointed us was Broadwing, the former
Cincinnati Bell. No one single event caused Broadwing's stock to falter over
35 percent during the quarter, but the company continues to work through its
acquisition of IXC Communications, which it purchased in November 1999. With
that acquisition, Broadwing's focus changed from that of a local telephone
company to an integrated telecommunications company whose network stretches
across the U.S. Investors appear to be waiting for confirmation that Broadwing
can thrive in its new expanded market. We have been impressed with management
over the years and expect that they will deliver solid returns as they
integrate the strong assets they acquired in IXC.
Outlook
We expect the energy sector to continue to perform well in the face of
relatively higher oil prices. Current oil prices in the high $20s are not
likely to be sustainable, but anything over $20 will encourage prospecting,
drilling and production, all to the benefit of oil services stocks. We believe
the energy sector is in the middle of a longer term trend driven by the same
factors we have mentioned in the past: a supply/demand imbalance for natural
gas in the U.S., world economic growth, and increased capital spending among
the major oil companies.
We believe equity investors will continue to carefully watch economic
statistics, Fed moves, and the presidential election for hints on which
direction the U.S. economy is heading. On the up side, we see indications that
Federal Reserve policy has begun to cool the economy slightly. On the down
side is the reality that slower economic growth may lead to slower earnings
growth, some of which we have witnessed here of late as second quarter
earnings announcements are being released. We expect this tug-of-war to
continue over the next few quarters.
Despite the shakeout among highly valued stocks that occurred during the
second quarter, the market still has a way to go in becoming more rational. To
that end, we expect the market to increasingly reward companies that
consistently deliver earnings to shareholders rather than merely promise
profitability sometime in the distant future.
In the face of the volatility that will likely continue, we will continue to
use fundamental analysis to seek investments in superior companies with proven
business plans that trade at reasonable valuations.
Chad Horning and John Nussbaum, CFA, CPA
MMA Praxis Growth Fund Managers
-8-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Growth Fund (continued)
[LINE GRAPH]
Growth Fund
Value of a $10,000 Investment
1/4/94 to 6/30/00
S&P 500 Domini 400
Class A* Class B Index Social Index
1/94 9,744.07 10,280.00 10,000.00 10,000.00
6/94 9,177.00 9,681.74 9,344.74 9,612.12
12/94 9,503.86 10,026.65 9,802.35 10,017.93
6/95 11,344.75 11,968.74 11,777.36 12,140.90
12/95 12,671.13 13,868.09 13,471.32 13,845.13
6/96 13,294.40 14,025.60 14,844.82 15,237.50
12/96 14,683.46 15,490.97 16,579.72 17,126.20
6/97 17,056.92 17,994.96 19,989.65 20,865.05
12/97 18,961.89 20,004.80 22,111.74 23,677.82
6/98 20,011.31 21,111.94 26,028.62 28,159.85
12/98 20,091.84 21,196.83 28,431.12 31,859.37
6/99 23,350.69 24,607.32 31,949.70 35,790.98
12/99 22,642.89 23,774.75 34,410.97 39,666.50
6/00 23,200.67 24,283.99 34,325.24 38,731.14
This chart represents historical performance of a hypothetical investment of
$10,000 in the Growth Fund from 1/4/94 to 6/30/00, and represents the
reinvestment of dividends and capital gains in the fund.
Average Annual Total Return
as of 6/30/00
<TABLE>
<CAPTION>
Aggregate Since
6 Month 1 Year 3 Year 5 Year Inception
--------- ------- ------ ------ ---------
<S> <C> <C> <C> <C> <C>
Class A 2.46% (0.64)% 10.80% 15.38% 14.80%
Class A* (2.90)% (5.84)% 8.83% 14.15% 13.86%
Class B 2.14% (1.31)% 10.51% 15.20% 14.66%
Class B** (1.86)% (4.75)% 9.97% 15.09% 14.66%
</TABLE>
* Reflects maximum sales charge of 5.25%
** Reflects maximum applicable contingent deferred sales charge of
4.00%
Past performance is not indicative of future results. The
investment return and principal value will fluctuate so that
an investors' shares, when redeemed, may be worth more or
less than the original cost.
Class A Shares of this fund were not in existence prior to
5/12/99. Class A Shares performance calculated for any
period prior to 5/12/99 is based on the performance of Class
B Shares since inception 1/4/94.
The Standard & Poor's 500 Stock Index and the Domini 400
Social Index are unmanaged indexes, generally representative
of the stock market and the socially responsible investment
market, respectively. These indexes are for illustrative
purposes only and 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 fees. In such instances and without waiver of fees,
total return would have been lower. An investor may not
invest directly in any index.
-9-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis International Fund+
Global stock markets began the year 2000 the way they ended 1999: that is,
going strong and led by "New Economy" TMT (tech, media, telecom) stocks. The
fact that the Federal Reserve had been raising interest rates for months did
not appear to concern investors, who reasoned that the Fed was not tightening
so much as simply restoring interest rates to levels that existed before the
1998 financial market crisis. Late in the first quarter, however, as the Fed
pushed rates up past 1998 levels, markets began to realize that the Fed was
serious about slowing the U.S. economy. The ripple effects of U.S. policy
moved quickly and forcefully through world equity markets and the second
quarter saw heavy selling in the growth-oriented sectors that had performed so
well in the previous six months. Your portfolio was overweight in the TMT
sector and did well in the first quarter, while underperforming in the second.
For the first half of 2000, your portfolio underperformed its benchmark, the
Morgan Stanley Capital International (MSCI) Europe, Australasia, and Far East
(EAFE) Index, returning -7.10 percent versus -4.06 percent for the benchmark.
Stock selection in the TMT sector was the dominant factor in your portfolio's
performance in both the first and second quarters. In the first, performance
benefited from such holdings as Vodafone (+12.5 percent), NTT DoCoMo (+6.9
percent), KPN (+17.9 percent), Mediaset (+28.4 percent), Bell Canada (+37.9
percent) and Vivendi (+28.3 percent). The same exposure to the TMT sector that
served the portfolio so well in the first quarter proved to be a negative in
the second, however, when fears of higher rates and slower growth began to
grip markets. The impact on telecom stocks in particular was severe and
worldwide. From NTT DoCoMo in Japan (-33.9 percent) to Holland's KPN (-21.6
percent) to the U.K. giant Vodafone (-27.3 percent), global telecom stocks led
the downturn and the fund's investment in these stocks hurt performance. The
portfolio's other media-related companies were also treated harshly, as Hong
Kong's Hutchison Whampoa (-23.4 percent) and Mediaset in Italy (-22.8 percent)
reflected the market's sudden disenchantment with the internet. Finally, your
position in Vivendi (-23.2 percent), the European leader in bringing the
internet to mobile phones, found the market unreceptive to its proposed
acquisition of Seagram's and its coveted Universal Music business.
The fund was of course not entirely invested in TMT, and your portfolio's
balance between "Old" and "New Economy" stocks served its purpose in the
second quarter as several holdings performed well and mitigated the
portfolio's negative relative performance. The market embraced companies with
stable, more certain earnings and several fund holdings did well.
Pharmaceutical holdings Aventis (+33.9 percent), AstraZeneca (+15.3 percent)
and Novartis (+16.2 percent) performed well. Publisher Reed International
(+19.2 percent) also produced strong returns during the quarter, and French
grocer Carrefour (+11.0 percent) advanced. In broad terms, however, the
performance story of the first half of 2000 is the story of the TMT sector.
Looking ahead, we are encouraged to see the market refocusing on fundamentals
and the reliability of earnings. This more rational approach should buoy both
"New" and "Old Economy" stocks that can meet or exceed market expectations in
a more challenging earnings environment. We have used recent market strength
to trim TMT exposure in stocks like Vodafone and Philips. We have also begun
to reduce our Japanese weighting via sales of Nikko Securities and other
stocks as the Japanese market tends to perform poorly when global growth
begins to slow. Your portfolio is now underweight in Japan.
-------
+International investing involves increased risk and volatility.
-10-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis International Fund+ (continued)
We will continue to emphasize a balance between faster growing sectors like
telecom equipment, software and more broadly based electronics companies and
industries with more stable and visible earnings. Recent purchases, for
example, include initiating or expanding investments in publishing companies
like Wolters Kluwer and Reed International, the consumer behemoth Unilever,
and German financial services company Allianz. We believe markets have
correctly concluded that interest rates are nearing their peak, and we concur
with the consensus view that a soft economic landing is most likely. Recent
profit warnings from leading companies in the U.S. and Europe remind us,
however, that while the environment is still supportive, it is becoming more
challenging. Higher interest rates and slower growth will make it more
difficult to meet the market's demanding expectations. Our current research is
focused specifically on the reliability of the earnings outlook, and we are
pleased to find attractive investment opportunities across a variety of
sectors.
Martina Oechsle
Oechsle International Advisors, LLC
MMA Praxis International Fund Sub-advisor
-11-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis International Fund (continued)
[LINE GRAPH]
International Fund+
Value of a $10,000 Investment
4/1/97 to 6/30/00
Class A* Class B** MSCI EAFE
INDEX
4/97 9,582.94 10,110.00 10,000.00
6/97 10,901.44 11,501.03 11,243.18
12/97 10,085.07 10,639.75 10,303.68
6/98 12,497.13 13,184.48 11,960.88
12/98 12,503.71 13,191.33 12,398.96
6/99 13,327.71 14,060.77 12,908.03
12/99 17,810.56 18,732.28 15,784.72
6/00 16,586.81 17,202.00 15,161.64
This chart represents historical performance of a hypothetical investment of
$10,000 in the International Fund from 4/1/97 to 6/30/00, and represents the
reinvestment of dividends and capital gains in the fund.
Average Annual Total Return
as of 6/30/00
<TABLE>
<CAPTION>
Aggregate Since
6 Month 1 Year 2 Year 3 Year Inception
--------- ------ ------ ------ ---------
<S> <C> <C> <C> <C> <C>
Class A (6.87)% 24.45% 15.21% 15.02% 18.81%
Class A* (11.77)% 17.93% 12.14% 12.96% 16.87%
Class B (7.10)% 23.76% 14.89% 14.80% 18.61%
Class B** (10.75)% 19.76% 13.57% 14.29% 18.18%
</TABLE>
* Reflects maximum sales charge of 5.25%
** Reflects maximum applicable contingent deferred sales charge of
4.00%
+International investing involves increased risk and
volatility.
Past performance is not indicative of future results. The
investment return and principal value will fluctuate so that
an investors' shares, when redeemed, may be worth more or
less than the original cost.
Class A Shares of this fund were not in existence prior to
5/12/99. Class A Shares performance calculated for any
period prior to 5/12/99 is based on the performance of Class
B Shares since inception 4/1/97.
The Morgan Stanley Capital International (MSCI) Europe,
Australasia and Far East (EAFE) Index is an unmanaged index,
generally representative of international stocks in these
regions. 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 fees.
In such instances, and without waiver of fees, the total
return would have been lower. An investor may not invest
directly in any index.
-12-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Stewardship Investing Update
Stewardship investing in action!
At the very core of any approach to stewardship lies an understanding that our
beliefs and values should affect--in a real and substantial way--the choices
we make. The concept of stewardship is not passive, but active. It calls us to
listen, reflect, and respond. It moves us to action!
The past six months have seen much action on behalf of stewardship investing
at MMA Praxis Mutual Funds. I'm pleased to share a report on some of these
activities with you.
In SRI research . . .
Much time has been given to reviewing and revising MMA's Ethical Investment
Guidelines--an effort that will provide MMA Praxis a deeper, more complex
system for corporate social evaluation. What is emerging is a distinctive set
of positively-focused core values articulating our expectations, from an
Anabaptist-Christian perspective, of corporate responsibility. We are indebted
to the contributions of our external Investment Guidelines Review Committee,
comprised of ethicists, theologians, and businesspersons representing a
variety of viewpoints. Scott Wagner, Willis Sommer, Michelle Horning, J.
Lawrence Burkholder, Phil Rich, Richard Friesen, and Arlan Yoder have all made
the development of the new guidelines possible. We anticipate final approval
of the new Stewardship Investing Guidelines this December. Look for a full
review of these guidelines in the MMA Praxis 2000 Annual Report.
We have added a new staff person to dedicate additional time and energy to our
SRI research activities. This additional capacity will be critical as we seek
to implement our new guidelines and company evaluation system, ensuring that
our work meets the highest standards for faith-based, socially-concerned
investing.
In addition, efforts to expand MMA's capabilities for international SRI
research and advocacy continue to receive special attention. International SRI
is one of the cutting edges for our industry and MMA Praxis is in a leadership
role in this area. I continue to chair the International SRI Working Group for
the Social Investment Forum--a group exploring ways to cooperatively increase
access to international SRI research and advocacy opportunities. An invitation
to speak at the Third Conference on Business and Social Responsibility in the
Americas in Mexico City this May gave me new insight into the growing
attention to corporate responsibility concerns in many Latin companies. This
is a movement to be both encouraged and understood if we hope to maintain
social standards for international investment that equal those we apply
domestically.
In shareholder advocacy . . .
There are times when a particular issue or concern reaches out to galvanize
people and organizations from a wide range of perspectives and interests. The
last six weeks have been dominated by just such a situation. In early June,
MMA Praxis and many other socially-concerned investors learned that AT&T had
inked a contract with The Hot Network to carry hard-core, sexually explicit
content on its digital cable systems. Most distressing was the revelation that
this material went significantly beyond the racy (and often objectionable)
material that is already available through most cable systems. Concern about
this action has been great. AT&T is a widely held--and generally well-
regarded--company within the social investment community.
This issue was raised at the annual general meeting of the Interfaith Center
for Corporate Responsibility, of which MMA Praxis is a long-standing member.
MMA was asked to provide leadership for a multidenominational, institutional
investor approach to AT&T and raise our concerns about their plan to become
one of the nation's largest distributors of sexually explicit content. AT&T's
actions raised a number of questions relating to their valuable and once-
sterling
-13-
<PAGE>
MMA Praxis Mutual Funds
MMA Praxis Stewardship Investing Update (continued)
reputation and the management decision-making processes within the company. On
July 14, MMA Praxis and 26 other religious and social investment
organizations, owning more than 2.8 million shares of the company, sent a
strong letter of concern to AT&T chairman and CEO, C. Michael Armstrong. Press
coverage and interest in this letter has been substantial, ranging from the
New York Times to the Financial Times of London to the Chicago Tribune and the
Fox News Channel. You may have seen coverage of this issue in your community
as well.
The religious investors' letter has also served as a significant source of
encouragement to local communities and employee groups within AT&T who are
actively campaigning for a reversal of AT&T's arrangement with The Hot
Network. In their formal response to the coalition, AT&T claimed it was
seeking to offer "a wide choice of programming options" with what it deemed
appropriate "customer control." No where did their letter address the impact
of this material on individuals or communities--or AT&T's responsibilities as
a corporate citizen. We are left wondering about the nature and content of the
even harder material that can and will certainly follow under such a policy.
The coalition is now actively pursuing a meeting with AT&T Broadband
management and will continue to look for ways to help AT&T see the negative
social and financial implications this policy and approach can carry.
I have been asked many times how others can lend their voice to our efforts
with AT&T. MMA Praxis has added a section to its web site (www.mmapraxis.com),
under "In the News," that provides a copy of our letter and press release and
any updates that are available. We also list contact information for Michael
Armstrong and AT&T Investor Relations for those AT&T customers or concerned
consumers who wish to make their feelings known directly.
In community development investing . . .
On Jan. 11, 2000, MMA Community Development Investments, Inc. (MMA CDI), was
established as a separate, not-for-profit arm of MMA, dedicated to increasing
access to and opportunities for community investing. This organization--one of
only a handful of its kind--seeks to open doors of economic opportunity for
disadvantaged communities and individuals by facilitating the flow of
investment dollars to those who need it most.
While many of us realize that our current economic systems don't benefit all
people equally, MMA CDI provides an opportunity for MMA, institutional and
individual investors, and MMA Praxis shareholders to make "investments that
build hope" a part of our stewardship investing activity. MMA CDI will serve
as a conduit for investment dollars to reach highly-qualified, highly-
effective community development organizations at near- or even below-market
rates. We are currently awaiting SEC approval for MMA Praxis investment in MMA
CDI, but the MMA Praxis Board of Trustees has approved a policy allowing the
MMA Praxis Mutual Funds to invest up to 1 percent in below-market and up to 2
percent in near-market community investments. This commitment places MMA
Praxis well beyond the "1 percent for community" benchmark established
recently by the Social Investment Forum. And while these community investment
commitments will have a negligible impact on financial returns, the resources
they represent will make a profound difference in the lives of communities and
individuals seeking the road to self-sufficiency and economic stability.
MMA Community Development Investments hopes to place up to $4.5 million in
community investments yet in 2000. We launched MMA CDI with a $500,000
investment in the Sarona Fund--an investment pool, managed by Mennonite
Economic Development Associates, used to support micro-enterprise efforts in
low-income countries around the world. Watch the MMA Praxis web site for news
of additional placements in the months ahead.
Mark A. Regier
MMA SRI Research and Advocacy Coordinator
Manager, MMA Community Development Investments
-14-
<PAGE>
MMA Praxis Mutual Funds
Frequently asked questions about MMA Praxis Mutual Funds
Q. Recently, I read an investment commentary that made a case for the stock
market being overvalued. The author of this article premised his opinions
on the S&P earnings yield. What does this number measure? How can this
indicator be used to measure whether the stock market is undervalued or
overvalued?
A. Good question! You can measure the level of optimism in stocks relative to
bonds by looking at the "earnings yield"--the amount of earnings behind
every dollar of stock price. Currently, on the Standard & Poor's 500 Stock
Index, the yield is 3.6 percent. (For each $100 of the S&P, there is $3.60
of earnings anticipated for the year 2000.) That is the underlying
fundamental return--the whole return--you get from buying the S&P 500.
Anything else will have to come from earnings rising or from somebody
else's paying more for the earnings that already exist. By contrast, the
30-year Treasury bond is yielding 5.9 percent for each $100. Thus, stock
market investors are so optimistic about the future that they are settling
for 39 percent less in the present. The earnings yield on 30-year corporate
bonds is 7.4 percent--double the S&P earnings yield. Such numbers mean that
even if S&P earnings grow by 10 percent a year, investors will have to wait
seven years to match the yield on high-grade corporate bonds.
For this reason, some investors are predicting a period of bonds
outperforming stocks, until the gap between the S&P earnings yield and
long-term bond yields narrow. Of course, there can be no assurance that the
earnings yield calculation is an accurate indicator of the direction of
future stock or bond prices. However, it does seem to indicate that it will
be difficult to continue to sustain strong outperformance of stocks over
bonds in the next several years.
Q. What are circuit breakers and how are they used to manage stock market
volatility?
A. The U.S. stock markets have "circuit breakers" in place to slow accelerated
declines. For example, if the Dow Jones Industrial Average falls 10 percent
before 2 p.m., the market will close for one hour; but if that drop occurs
after 2:30 p.m., the market will remain open. A 20 percent drop will close
the market for two hours if it occurs before 1 p.m.; and if the drop occurs
after 2 p.m., the market will close for the day. A 30 percent drop will
close the market for the day no matter what time it happens. This mechanism
is designed to curb panic-selling momentum. The initiative for these types
of curbs emerged from the stock market crash of 1987.
-15-
<PAGE>
Table of Contents
Statements of Assets and Liabilities
Page 17
Statements of Operations
Page 18
Statements of Changes in Net Assets
Page 19
Schedules of Portfolio Investments
Page 20
Notes to Financial Statements
Page 31
Financial Highlights
Page 36
-16-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Statements of Assets and Liabilities
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate International
Income Fund Growth Fund Fund
------------ ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$50,958,273; $168,415,214; and
$58,498,805, respectively)........... $49,356,033 $180,192,591 $66,816,847
Cash.................................. 623,594 105,157 3,555,535
Foreign currency at value (cost $0; $0
and $55,649, respectively)........... -- -- 55,671
Interest and dividends receivable..... 889,885 185,581 30,610
Receivable for capital shares issued.. -- 3,316 20,500
Receivable for investments sold....... -- -- 256,593
Tax reclaim receivable................ -- -- 34,897
Deferred organizational costs......... -- -- 7,403
Receivable from investment advisor.... 1,729 17,248 5,633
Prepaid expenses and other assets..... 15,563 19,476 49,047
----------- ------------ -----------
Total Assets....................... 50,886,804 180,523,369 70,832,736
----------- ------------ -----------
LIABILITIES:
Distributions payable................. 241,450 -- 1,324,678
Unrealized depreciation on foreign
currency contracts................... -- -- 2,211
Payable for investments purchased..... 455,180 1,464,080 3,398,697
Payable for capital shares redeemed... 43,346 63,580 73,769
Accrued expenses and other payables:
Investment advisory fees............. -- 75,469 30,305
Administration fees.................. 2,402 7,975 2,962
Distribution fees.................... 17,585 104,950 30,243
Shareholder servicing fees........... 516 14,194 5,092
Other................................ 23,662 16,057 10,846
----------- ------------ -----------
Total Liabilities.................. 784,141 1,746,305 4,878,803
----------- ------------ -----------
NET ASSETS:
Capital stock, at par value........... 53,379 117,058 39,747
Additional paid-in-capital............ 52,735,853 162,848,939 51,809,208
Accumulated net investment income
(loss)............................... 10,243 (176,825) (479,125)
Accumulated net realized gains
(losses) from investments and foreign
currency transactions................ (1,094,572) 4,210,515 6,266,907
Net unrealized appreciation
(depreciation) from investments and
translation of assets and liabilities
in foreign currencies................ (1,602,240) 11,777,377 8,317,196
----------- ------------ -----------
Total Net Assets................... $50,102,663 $178,777,064 $65,953,933
=========== ============ ===========
Net Assets
Class A.............................. $18,753,513 $ 14,779,641 $25,104,468
Class B.............................. 31,349,150 163,997,423 40,849,465
----------- ------------ -----------
Total.............................. $50,102,663 $178,777,064 $65,953,933
=========== ============ ===========
Shares of beneficial units outstanding
(unlimited number of shares
authorized with $0.01 par value)
Class A.............................. 1,998,296 960,351 1,513,982
Class B.............................. 3,339,584 10,745,446 2,460,700
----------- ------------ -----------
Total.............................. 5,337,880 11,705,797 3,974,682
=========== ============ ===========
Net asset value
Class A--redemption price per share.. $ 9.38 $ 15.39 $ 16.58
=========== ============ ===========
Class B--offering price per share*... $ 9.39 $ 15.26 $ 16.60
=========== ============ ===========
Maximum Sales Charge--Class A......... 3.75% 5.25% 5.25%
=========== ============ ===========
Maximum Offering Price Per Share (100%
/(100%-Maximum Sales Charge)) of net
asset value adjusted to nearest cent
per share--Class A................... $ 9.75 $ 16.24 $ 17.50
=========== ============ ===========
</TABLE>
-------
*Redemption price per share (Class B) varies by length of time shares are held.
(See Note 4)
See notes to financial statements.
-17-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Statements of Operations
For the Six Month Period Ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate Growth International
Fund Fund Fund
------------ ---------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................. $1,756,412 $ 337,906 $ 76,904
Dividends................................ -- 957,624 1,979,251
Foreign tax withholding.................. -- -- (60,202)
---------- ---------- ------------
Total Income........................... 1,756,412 1,295,530 1,995,953
---------- ---------- ------------
EXPENSES:
Investment advisory fees................. 125,171 637,052 283,921
Administration fees...................... 37,551 129,132 47,320
Distribution fees--Class A............... 22,806 15,737 30,109
Distribution fees--Class B............... 119,337 598,450 146,274
Shareholder servicing fees--Class A...... 22,806 15,737 30,109
Shareholder servicing fees--Class B...... 39,779 199,483 48,758
Custodian fees........................... 644 4,438 33,681
Accounting fees.......................... 24,771 29,648 24,068
Organization costs....................... -- -- 1,793
Trustees' fees and expenses.............. 3,753 12,606 4,204
Transfer agent fees...................... 67,865 211,970 78,790
Other expenses........................... 38,099 77,414 38,062
---------- ---------- ------------
Total expenses before voluntary fee
reductions............................ 502,582 1,931,667 767,089
Expenses voluntarily reduced........... (234,154) (459,414) (201,612)
---------- ---------- ------------
Total Expenses......................... 268,428 1,472,253 565,477
---------- ---------- ------------
Net Investment Income.................... 1,487,984 (176,723) 1,430,476
---------- ---------- ------------
NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS:
Net realized gains (losses) from
investment and foreign currency
transactions............................ (980,734) (274,698) 5,043,556
Net change in unrealized
appreciation/(depreciation) from
investments and translation of assets
and liabilities in foreign currencies... 603,353 4,267,998 (11,113,498)
---------- ---------- ------------
Net realized and unrealized
gains/(losses) on investments........... (377,381) 3,993,300 (6,069,942)
---------- ---------- ------------
Net increase/(decrease) in net assets
resulting from operations............... $1,110,603 $3,816,577 $ (4,639,466)
========== ========== ============
</TABLE>
See notes to financial statements.
-18-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate Income Fund Growth Fund International Fund
------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
----------- ------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................. $ 1,487,984 $ 2,603,038 $ (176,723) $ (607,149) $ 1,430,476 $ (86,898)
Net realized gains
(losses) from
investment and foreign
currency transactions.. (980,734) (113,260) (274,698) 23,539,529 5,043,556 3,467,517
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 603,353 (3,345,091) 4,267,998 (5,736,667) (11,113,498) 13,653,238
----------- ----------- ------------ ------------ ------------ -----------
Change in net assets
resulting from
operations............. 1,110,603 (855,313) 3,816,577 17,195,713 (4,639,466) 17,033,857
----------- ----------- ------------ ------------ ------------ -----------
Distributions to
Shareholders:
Class A
From net investment
income................ (565,254) (604,477) -- -- (545,322) --
In excess of net
investment income..... -- -- -- -- -- (141,157)
From net realized gains
from investment
transactions.......... -- (10,070) -- (1,313,170) -- (382,467)
Class B
From net investment
income................ (919,249) (1,991,531) -- -- (779,360) --
In excess of net
investment income..... -- -- -- -- -- (49,910)
From net realized gains
from investment
transactions.......... -- (18,695) -- (20,072,304) -- (492,504)
----------- ----------- ------------ ------------ ------------ -----------
Change in net assets
from distributions to
shareholders........... (1,484,503) (2,624,773) -- (21,385,474) (1,324,682) (1,066,038)
Change in net assets
from capital
transactions........... (304,110) 11,873,124 6,356,572 35,817,550 13,193,668 11,593,601
----------- ----------- ------------ ------------ ------------ -----------
Change in net assets.... (678,010) 8,393,038 10,173,149 31,627,789 7,229,520 27,561,420
----------- ----------- ------------ ------------ ------------ -----------
Net Assets:
Beginning of period.... 50,780,673 42,387,635 168,603,915 136,976,126 58,724,413 31,162,993
----------- ----------- ------------ ------------ ------------ -----------
End of period.......... $50,102,663 $50,780,673 $178,777,064 $168,603,915 $ 65,953,933 $58,724,413
=========== =========== ============ ============ ============ ===========
</TABLE>
See notes to financial statements.
-19-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund
Schedule of Portfolio Investments
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Asset Backed Securities (0.5%):
$ 250,000 American Express Master Trust, Series 1994-3, Class
A, 7.85%, 8/15/05................................... $ 254,923
-----------
Total Asset Backed Securities 254,923
-----------
Collateralized Mortgage Obligations (4.0%):
500,000 Federal Home Loan Mortgage Corp., Series T-11, Class
A4, 6.50%, 3/25/11.................................. 475,857
271,127 Federal National Mortgage Assoc., Series 1996-M6,
Class G, 7.75%, 9/17/23, ACES....................... 265,874
550,000 Federal National Mortgage Assoc., Series 1997-M4,
Class C, 7.30%, 8/17/18, ACES....................... 541,750
203,177 Small Business Investment Companies, Series 1995-
P10C, Class 1, 6.00%, 9/25/18....................... 203,685
500,000 Vendee Mortgage Trust, Series 1993-2, Class I, 6.75%,
3/15/06............................................. 494,670
-----------
Total Collateralized Mortgage Obligations 1,981,836
-----------
Corporate Bonds (62.2%):
Banks (0.9%):
450,000 NationsBank Corp., 6.13%, 7/15/04.................... 428,625
-----------
Broadcasting/Cable (1.5%):
500,000 CSC Holdings Inc., 8.13%, 7/15/09.................... 486,875
250,000 TCI Communications Inc., 8.65%, 9/15/04.............. 261,563
-----------
748,438
-----------
Brokerage Services (3.3%):
1,250,000 Goldman Sachs Group, 6.65%, 5/15/09.................. 1,145,313
500,000 Morgan Stanley Dean Witter Discover & Co., 9.38%,
6/15/01............................................. 509,375
-----------
1,654,688
-----------
Chemicals--General (1.0%):
500,000 Witco Corp., 6.60%, 4/1/03........................... 477,500
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Data Processing & Reproduction (1.8%):
$1,000,000 First Data Corp., 5.80%, 12/15/08.................... $ 897,500
-----------
Electric--Integrated (1.4%):
700,000 Sierra Pacific Resources, 8.75%, 5/15/05............. 710,500
-----------
Electronic & Electrical--General (1.0%):
500,000 Limestone Electron Trust, 8.63%, 3/15/03............. 503,750
-----------
Entertainment (0.9%):
500,000 Harman International Ind., 7.32%, 7/1/07............. 465,000
-----------
Financial Services (6.3%):
1,000,000 Comdisco Inc., 6.00%, 1/30/02........................ 957,499
500,000 Crown Cork & Seal Financial PLC, 7.00%, 12/15/06..... 426,875
500,000 Discover Card Master Trust,, 5.90%, 7/17/07.......... 490,700
500,000 Equifax, Inc., 6.90%, 7/1/28......................... 433,750
125,000 Export Funding Trust, Series 1994-A, Class A, 7.89%,
2/15/05............................................. 123,531
250,000 Golden West Financial Corp., 10.25%, 12/1/00......... 253,125
500,000 Osprey Trust, 8.31%,
1/15/03 (b)......................................... 501,875
-----------
3,187,355
-----------
Food Distributors & Wholesalers (1.1%):
250,000 Secured Finance, Inc.--Kroger, 9.05%, 12/15/04....... 267,813
260,000 SUPERVALU, Inc., 7.80%, 11/15/02..................... 260,000
-----------
527,813
-----------
Food Products (0.9%):
500,000 Dean Foods Co., 6.90%, 10/15/17...................... 455,625
-----------
Food Stores (0.5%):
250,000 Shoppers Food, 9.75%, 6/15/04........................ 262,188
-----------
</TABLE>
Continued
-20-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Forest Products--Lumber & Paper (2.7%):
$ 500,000 Westvaco Corp., 7.75%, 2/15/23, Callable 2/15/03 @
103.62.............................................. $ 482,500
1,000,000 Weyerhaeuser Co., 6.95%, 8/1/17...................... 887,500
-----------
1,370,000
-----------
Industrial Goods & Services (7.3%):
1,000,000 American Greetings, 6.10%, 8/1/28.................... 893,750
500,000 Boston Scientific Corp., 6.63%, 3/15/05.............. 471,250
1,020,000 CSR America, Inc., 6.88%, 7/21/05.................... 981,749
500,000 Masco Corp., 6.13%, 9/15/03.......................... 473,750
1,000,000 Masco Corp., 7.75%, 8/01/29.......................... 892,500
-----------
3,712,999
-----------
Insurance (2.3%):
250,000 Allstate Corp., 6.75%,
6/15/03 (b)......................................... 244,688
500,000 Harleysville Group, Inc., 6.75%, 11/15/03............ 483,750
400,000 Protective Life Corp., 7.95%, 7/1/04................. 404,000
-----------
1,132,438
-----------
Medical Equipment & Supplies (0.9%):
500,000 Hillenbrand Industries, 7.00%, 2/15/24............... 457,500
-----------
Metals--Fabrication (1.0%):
500,000 Worthington Industries, Inc., 7.13%, 5/15/06......... 483,750
-----------
Natural Gas Distribution (1.0%):
500,000 Keyspan Gas East, 7.79%, 2/1/10...................... 501,250
-----------
Oil & Gas Exploration, Production & Services (0.5%):
250,000 Louisiana Land & Exploration Co., 8.25%, 6/15/02..... 255,000
-----------
Oil & Gas Transmission (2.1%):
100,000 Questar Pipeline Co., 9.88%, 6/1/20.................. 104,750
500,000 Sonat Inc., 7.63%, 7/15/11........................... 488,750
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Oil & Gas Transmission, continued:
$ 500,000 Tennessee Gas Pipeline Co., 7.50%, 4/1/17............ $ 475,000
-----------
1,068,500
-----------
Oil--U.S. Exploration & Production (0.9%):
500,000 Anadarko Petroleum Corp., 7.20%, 3/15/29............. 457,500
-----------
Paper Products (1.0%):
500,000 Westvaco Corp., 6.85%, 11/15/04...................... 484,375
-----------
Pharmaceuticals (0.9%):
500,000 Watson Pharmaceuticals, 7.13%, 5/15/08............... 446,250
-----------
Retail--Discount (0.5%):
250,000 Dollar General, 8.63% 6/15/10........................ 248,438
-----------
Retail--Department Stores (4.5%):
300,000 Dayton Hudson Co., 8.50%, 12/1/22, Callable 12/1/02 @
103.75.............................................. 295,875
500,000 Federated Department Stores, 8.50%, 6/15/03.......... 508,125
250,000 Kohl's Corp., 6.70%, 2/1/06.......................... 240,313
750,000 Kohl's Corp., 7.25%, 6/1/29.......................... 666,562
500,000 May Department Stores, 8.75%, 5/15/29................ 533,749
-----------
2,244,624
-----------
Software & Computer Services (1.0%):
500,000 Sun Microsystems Inc., 7.00%, 8/15/02................ 497,500
-----------
Telecom Services (1.5%):
750,000 AT&T Canada Inc., 7.65%, 9/15/06..................... 742,500
-----------
Telephone--Integrated (1.9%):
500,000 WorldCom Inc, 7.13%, 6/15/27......................... 494,375
500,000 WorldCom Inc., 6.95%, 8/15/28........................ 441,875
-----------
936,250
-----------
Textile Manufacturing (1.0%):
500,000 VF Corp., 7.60%, 4/1/04, Callable 4/1/01 @ 100....... 499,375
-----------
</TABLE>
Continued
-21-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds, continued:
Tire & Rubber (1.0%):
$ 500,000 Cooper Tire and Rubber Co., 7.75%, 12/15/09.......... $ 486,875
-----------
Transportation Services (5.7%):
700,000 Federal Express, 9.88%, 4/1/02....................... 726,249
400,000 Federal Express, 10.13%, 7/15/03..................... 424,000
250,000 GATX Corp., 8.63%, 12/1/04........................... 257,500
500,000 Golden State Petroleum, 8.04%, 2/1/19................ 449,375
500,000 Union Tank Car Co., 6.00%, 3/15/02................... 491,250
600,000 Union Tank Car Co., 7.13%, 2/1/07.................... 572,250
-----------
2,920,624
-----------
Utilities--Natural Gas (1.0%):
500,000 Michigan Consolidated Gas Co., 8.25%, 5/1/14......... 521,250
-----------
Utilities--Electric (1.0%):
500,000 Cincinnati Gas & Electric, 6.35%, 6/15/03............ 483,125
-----------
Utilities--Telecommunications (1.9%):
500,000 Ameritech Capital Funding Corp., 6.13%, 10/15/01..... 492,500
500,000 Frontier Corp., 6.00%, 10/15/03...................... 443,125
-----------
935,625
-----------
Total Corporate Bonds 31,204,730
-----------
Medium Term Notes (1.5%):
Food Products (0.5%):
250,000 International Multifoods Corp., Series A, 6.71%,
10/5/00............................................. 249,687
-----------
Utilities--Natural Gas (0.5%):
250,000 UGI Utilities, Inc., Series B, 7.17%, 6/15/07........ 240,313
-----------
Utilities--Electric (0.5%):
250,000 Kentucky Power Co., 6.65%, 5/1/03.................... 242,188
-----------
Total Medium Term Notes 732,188
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Market
Amount Security Description Value
---------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies (30.3%):
Fannie Mae (14.9%):
$ 481,616 6.47%, 12/1/01........................................ $ 476,196
500,000 6.41%, 2/6/02......................................... 496,435
500,000 5.13%, 2/13/04........................................ 469,745
450,000 7.38%, 9/1/06......................................... 447,788
1,100,000 7.13%, 3/15/07........................................ 1,103,211
976,584 6.24%, 4/1/08......................................... 919,170
1,000,000 7.25%, 1/15/10........................................ 1,008,160
484,132 7.45%, 10/1/11........................................ 485,967
807,217 6.50%, 5/1/18......................................... 766,768
640,229 6.50%, 6/1/18......................................... 607,680
661,000 7.13%, 1/15/30........................................ 662,633
-----------
7,443,753
-----------
Federal Home Loan Bank (1.4%):
250,000 6.25%, 8/13/04........................................ 242,813
500,000 6.38%, 8/15/06........................................ 483,115
-----------
725,928
-----------
Freddie Mac (6.3%):
1,750,000 6.88%, 1/15/05........................................ 1,739,220
282,132 7.00%, 11/1/07........................................ 279,375
545,080 6.00%, 1/1/14......................................... 518,922
321,887 6.50%, 11/1/15........................................ 308,155
343,389 6.50%, 3/1/18......................................... 327,764
-----------
3,173,436
-----------
Government National Mortgage Assoc. (5.5%):
421,812 6.88%, 9/15/08........................................ 416,261
289,288 7.50%, 2/15/23........................................ 287,569
394,083 6.00%, 12/20/27....................................... 393,342
298,211 7.75%, 11/15/29....................................... 298,677
496,038 6.50%, 5/15/34........................................ 471,365
437,037 6.93%, 9/15/39........................................ 423,943
499,234 6.85%, 10/15/39....................................... 482,400
-----------
2,773,557
-----------
Small Business Administration (0.2%):
80,529 6.25%, 9/25/18, Pool #502410.......................... 79,872
-----------
Student Loan Mortgage Assoc. (2.0%):
1,000,000 1997-3, Class A2, 0.00%, 10/25/10..................... 985,810
-----------
Total U.S. Government Agencies 15,182,356
-----------
</TABLE>
Continued
-22-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Intermediate Income Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
---------- ----------- -----------
<C> <S> <C>
Total Investments
(Cost $50,958,273)
(a)--98.5% $49,356,033
Other assets in excess
of liabilities--1.5% 746,630
-----------
Total Net Assets--
100.0% $50,102,663
===========
</TABLE>
-------
(a) Represents cost for federal income tax and financial reporting purposes
and differs from market value by net unrealized depreciation of securities
as follows:
<TABLE>
<S> <C>
Unrealized
appreciation....... $ 179,172
Unrealized
depreciation....... (1,781,412)
-----------
Net unrealized
depreciation....... $(1,602,240)
===========
</TABLE>
(b) 144A security which is restricted as to resale to institutional investors.
ACES--Automatic Common Exchange Securities
PLC--Public Liability Co.
See notes to financial statements.
-23-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Growth Fund
Schedule of Portfolio Investments
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (96.8%):
Automotive Parts (1.4%):
210,000 Wabash National Corp. ................................. $ 2,506,875
-----------
Banks (4.8%):
63,000 Bank One Corp. ........................................ 1,673,438
45,000 BankAmerica Corp. ..................................... 1,935,000
30,000 Fifth Third Bancorp.................................... 1,897,500
80,000 Wells Fargo Co. ....................................... 3,100,000
-----------
8,605,938
-----------
Beverages (2.6%):
104,000 PepsiCo, Inc. ......................................... 4,621,500
-----------
Building Materials (1.5%):
54,000 Fastenal Co. .......................................... 2,733,750
-----------
Chemicals-General (1.2%):
32,000 Air Products & Chemicals, Inc. ........................ 986,000
37,000 Sigma-Aldrich Corp. ................................... 1,082,250
-----------
2,068,250
-----------
Computers & Peripherals (8.6%):
76,000 Cisco Systems, Inc.*................................... 4,811,749
71,000 Compaq Computer Corp. ................................. 1,814,938
35,000 Hewlett-Packard Co. ................................... 4,370,624
21,000 Intel Corp. ........................................... 2,807,438
16,000 Sun Microsystems, Inc.*................................ 1,455,000
-----------
15,259,749
-----------
Computers--Memory Devices (0.7%):
16,000 EMC Corp.*............................................. 1,231,000
-----------
Consumer Goods & Services (1.5%):
47,000 Procter & Gamble Co. .................................. 2,690,750
-----------
Cosmetics & Toiletries (2.5%):
55,000 Gillette Co. .......................................... 1,921,563
45,000 Kimberly Clark Corp. .................................. 2,581,875
-----------
4,503,438
-----------
Diversified (0.3%):
6,000 Minnesota Mining & Manufacturing Co. .................. 495,000
-----------
Electronic & Electrical-General (7.2%):
13,349 Agilent Technologies, Inc.*............................ 984,489
18,000 Altera Corp.*.......................................... 1,834,875
39,000 Emerson Electric Co. .................................. 2,354,625
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Electronic & Electricial-General, continued
24,000 JDS Uniphase Corp.*................................. $ 2,877,000
46,000 Texas Instruments, Inc. ............................ 3,159,624
80,000 Thomas & Betts Corp. ............................... 1,530,000
------------
12,740,613
------------
Environmental Control (1.1%):
62,900 Ionics, Inc.*....................................... 1,926,313
------------
Financial Services (3.6%):
64,000 Fannie Mae.......................................... 3,340,000
78,000 Freddie Mac......................................... 3,159,000
------------
6,499,000
------------
Financial Services--Diversified (1.0%):
30,000 Citigroup, Inc. .................................... 1,807,500
------------
Food Distributors & Wholesalers (2.3%):
122,000 Albertsons, Inc. ................................... 4,056,500
------------
Food Products (0.9%):
86,000 Sara Lee Corp. ..................................... 1,660,875
------------
Forest Products-Lumber & Paper (1.1%):
73,000 Willamette Industries, Inc. ........................ 1,989,250
------------
Home Decoration Products (0.7%):
51,000 Newell Rubbermaid, Inc. ............................ 1,313,250
------------
Industrial Goods & Services (1.0%):
100,000 Masco Corp. ........................................ 1,806,250
------------
Insurance (3.3%):
142,000 Allstate Corp. ..................................... 3,159,500
46,000 Chubb Corp. ........................................ 2,829,000
------------
5,988,500
------------
Medical Supplies (5.9%):
56,500 Biomet, Inc. ....................................... 2,171,719
150,000 Boston Scientific Corp.*............................ 3,290,624
25,000 Johnson & Johnson, Inc. ............................ 2,546,875
57,000 St. Jude Medical, Inc.*............................. 2,614,875
------------
10,624,093
------------
Newspapers (0.7%):
21,900 Gannett Co., Inc. .................................. 1,309,894
------------
Office Equipment & Service (3.0%):
92,000 Pitney Bowes, Inc.*................................. 3,680,000
83,000 Xerox Corp. ........................................ 1,722,250
------------
5,402,250
------------
</TABLE>
Continued
-24-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Growth Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Oil & Gas Exploration, Production & Services (7.9%)
57,000 Anadarko Petroleum Corp. ........................... $ 2,810,813
200,000 R&B Falcon Corp.*................................... 4,712,499
96,000 The Williams Cos., Inc. ............................ 4,001,999
45,000 Transocean Sedco Forex, Inc. ....................... 2,404,688
------------
13,929,999
------------
Oil & Gas Transmission (1.0%):
36,200 El Paso Energy Corp. ............................... 1,843,938
------------
Oil-Integrated Companies (2.2%):
71,000 BP Amoco PLC ADR.................................... 4,015,938
------------
Oilfield Services & Equipment (1.4%):
145,000 Petroleum Geo-Services, Sponsored ADR*.............. 2,474,063
------------
Pharmaceuticals (4.8%):
80,000 ALZA Corp.*......................................... 4,730,000
20,000 Bristol-Myers Squibb Co. ........................... 1,165,000
36,000 Merck & Co., Inc. .................................. 2,758,500
------------
8,653,500
------------
Printing & Publishing (0.9%):
64,000 Electronics for Imaging, Inc.*...................... 1,620,000
------------
Retail (4.3%):
101,562 Dollar General Corp. ............................... 1,980,459
18,000 Home Depot, Inc. ................................... 898,875
47,000 Lowe's Cos., Inc. .................................. 1,929,938
31,000 Target Corp. ....................................... 1,798,000
18,000 Wal-Mart Stores, Inc. .............................. 1,037,250
------------
7,644,522
------------
Software & Computer Services (3.2%):
36,000 First Data Corp. ................................... 1,786,500
50,000 Microsoft Corp.*.................................... 4,000,000
------------
5,786,500
------------
Technology (0.8%):
16,000 Applied Materials, Inc.*............................ 1,450,000
------------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal
Amount Security Description Market Value
----------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued
Telecommunications (4.6%):
57,000 AT&T Corp. ......................................... $ 1,802,625
65,000 SBC Communications, Inc. ........................... 2,811,250
79,500 WorldCom, Inc.*..................................... 3,647,063
------------
8,260,938
------------
Telecommunications Equipment (1.0%):
18,000 Nortel Networks Corp. .............................. 1,228,500
8,000 QUALCOMM, Inc.*..................................... 480,000
------------
1,708,500
------------
Telecommunications-Services & Equipment (7.8%):
120,000 Broadwing, Inc.*.................................... 3,112,500
55,000 Lucent Technologies, Inc. .......................... 3,258,750
46,000 Scientific-Atlanta, Inc. ........................... 3,427,000
58,000 Tellabs, Inc.*...................................... 3,969,374
------------
13,767,624
------------
Total Common Stocks 172,996,060
------------
Commercial Paper (1.3%):
Finance (1.3%):
1,000,000 Norwest Financial, Inc., 6.35%, (b) 7/3/00.......... 999,647
1,300,000 Norwest Financial, Inc., 6.36%, (b) 7/5/00.......... 1,299,083
------------
Total Commercial Paper 2,298,730
------------
U.S. Government Agencies (2.7%):
Federal Home Loan Bank (1.6%):
2,907,000 6.40%, (b) 7/19/00.................................. 2,898,541
------------
Freddie Mac (1.1%):
2,000,000 6.39%, (b) 7/5/00................................... 1,999,260
------------
Total U.S. Government Agencies 4,897,801
------------
Total Investments
(Cost $168,415,214) (a)--100.8% 180,192,591
Liabilities in excess of other assets--(0.8)% (1,415,527)
------------
Total Net Assets--100.0% $178,777,064
============
</TABLE>
Continued
-25-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Growth Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
-------
(a) Represents cost for federal income tax and financial reporting purposes
and differs from market value by net unrealized appreciation of securities
as follows:
<TABLE>
<S> <C>
Unrealized
appreciation....... $ 34,067,676
Unrealized
depreciation....... (22,290,299)
------------
Net unrealized
appreciation....... $ 11,777,377
============
</TABLE>
(b) Effective yield at purchase
(*) Represents non-income producing securities.
ADR--American Depository Receipt
PLC--Public Liability Co.
See notes to financial statements.
-26-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
International Fund
Schedule of Portfolio Investments
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks (96.1%):
Brazil (1.2%):
Telecommunications (1.2%):
34,809 Embratel Participacoes S.A.*........................... $ 822,363
-----------
Canada (3.0%):
Telecommunication Equipment (3.0%):
28,644 Nortel Networks Corp.*................................. 1,985,422
-----------
France (9.6%):
Automotive Parts (1.4%):
17,521 Valeo S.A. ............................................ 940,545
-----------
Chemical--Specialty (0.8%):
32,161 Rhodia S.A. ........................................... 542,594
-----------
Drugs (3.0%):
27,184 Aventis S.A. .......................................... 1,992,158
-----------
Food Products (1.7%):
16,000 Carrefour S.A. ........................................ 1,098,161
-----------
Utilities-Water (2.7%):
19,740 Vivendi S.A. .......................................... 1,749,391
-----------
6,322,849
-----------
Germany (6.8%):
Automotive (1.0%):
22,384 Bayerische Motoren Werke AG............................ 678,044
-----------
Banks (1.5%):
23,437 Dresdner Bank AG....................................... 975,045
-----------
Electronic & Electrical-General (1.0%):
4,484 Siemens AG............................................. 676,985
-----------
Insurance (1.5%):
2,689 Allianz AG............................................. 979,506
-----------
Software & Computer Services (1.8%):
6,183 SAP AG................................................. 1,146,867
-----------
4,456,447
-----------
Greece (1.0%):
Telecommunications (1.0%):
25,750 Hellenic Telecommunication Organization S.A. .......... 630,893
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Hong Kong (2.9%):
Real Estate (1.8%):
99,000 Hutchison Whampoa Ltd. ................................ $ 1,244,638
-----------
Telecommunications--Services & Equipment (1.1%):
330,000 China Unicom Ltd.*..................................... 700,639
-----------
1,945,277
-----------
Italy (7.3%):
Banks (2.5%):
302,851 Banca Nazionale de Lavoro.............................. 1,071,244
124,179 Unicredito Italiano SpA................................ 596,374
-----------
1,667,618
-----------
Radio & Television (3.3%):
137,812 Mediaset SpA........................................... 2,113,683
-----------
Telecommunications (1.5%):
98,902 Telecom Italia Mobile SpA.............................. 1,014,429
-----------
4,795,730
-----------
Japan (22.5%):
Computers & Peripherals (1.5%):
28,000 Fujitsu Ltd. .......................................... 971,253
-----------
Data Processing & Reproduction (1.1%):
23,000 Kao Corporation........................................ 704,338
-----------
Drugs (1.5%):
15,000 Takeda Chemical Industries............................. 986,753
-----------
Electronic & Electrical--General (4.9%):
7,000 Murata Manufacturing Co. Ltd........................... 1,006,980
24,000 Pioneer Electronic Corp................................ 936,849
4,200 Rohm Co. Ltd. ......................................... 1,230,605
-----------
3,174,434
-----------
Electronic Components/Instruments (0.3%):
1,096 Samsu Electronics--GDR (c)............................. 181,358
-----------
Financial Services (4.3%):
125,000 Fuji Bank.............................................. 952,255
10,000 Nikko Securities Co., Ltd.............................. 99,242
144,000 Sakura Bank Ltd........................................ 997,642
1,720 Shohkoh Fund & Co. Ltd. ............................... 388,539
3,500 Takefuji Corp. ........................................ 423,765
-----------
2,861,443
-----------
Internet Content (0.2%):
1,200 Softbank Corp. ........................................ 163,325
-----------
</TABLE>
Continued
-27-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
International Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
Japan, continued:
Office Equipment (1.7%):
23,000 Canon, Inc. ........................................... $ 1,147,810
-----------
Pharmaceuticals (2.0%):
9,000 Taisho Pharmaceutical Co., Ltd. ....................... 323,247
18,000 Yamanouchi Pharmaceuticals Co., Ltd. .................. 985,052
-----------
1,308,299
-----------
Telecommunication Equipment (0.7%):
4,000 Matsushita Communications.............................. 468,046
-----------
Telecommunications (2.9%):
70 NTT Mobile Communications Network, Inc................. 1,898,838
-----------
Utilities--Telecommunications (1.4%):
71 Nippon Telegraph & Telephone Corp...................... 946,206
-----------
14,812,103
-----------
Korea (0.5%):
Telecommunications (0.5%):
9,108 SK Telecom Co. Ltd. ADR................................ 330,734
-----------
Mexico (1.0%):
Utilities--Telecommunications (1.0%):
11,685 Telefonos de Mexico SA, Sponsored ADR, Class L......... 667,506
-----------
Netherlands (16.8%):
Apparel (1.0%):
6,984 Gucci Group N.V. ADR*.................................. 661,734
-----------
Banks (1.7%):
16,396 ING Groep N.V. ........................................ 1,112,766
-----------
Electronic Components/Instruments (1.2%):
16,691 Philips Electronics N.V................................ 790,391
-----------
Food Diversified (1.4%):
19,526 Unilever N.V.--CVA..................................... 899,372
-----------
Food Retailer (1.5%):
33,910 Koninklijke Ahold...................................... 1,002,153
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Common Stocks, continued
Netherlands, continued
Publishing (5.2%):
38,305 Verenigde Nederlandse Uitgeversbedrijven Vererigd
Bezit................................................ $ 1,986,487
55,223 Wolters Kluwer CVA.................................... 1,476,921
-----------
3,463,408
-----------
Telecommunications (4.8%):
53,678 Koninklijke KPN N.V. ................................. 2,410,676
18,713 KPNQwest N.V.*........................................ 739,049
-----------
3,149,725
-----------
11,079,549
-----------
Singapore (1.5%):
Banks (1.5%):
78,000 DBS Group Holdings Ltd. .............................. 1,001,517
-----------
South Korea (1.3%):
Telecommunications (1.3%):
18,405 Korea Telecom Corp. ADR............................... 890,342
-----------
Spain (2.1%):
Telecommunications (2.1%):
63,675 Telefonica S.A.*...................................... 1,373,360
-----------
Sweden (1.0%):
Banks (1.0%):
57,456 Skandinaviska Enskilda Banken......................... 684,567
-----------
Switzerland (2.6%):
Chemical--Specialty (0.9%):
1,602 Clariant AG*.......................................... 597,031
-----------
Pharmaceuticals (1.7%):
696 Novartis AG*.......................................... 1,106,023
-----------
1,703,054
-----------
United Kingdom (15.0%):
Health & Personal Care (4.3%):
28,834 AstraZeneca Group PLC................................. 1,346,659
167,702 Reed International PLC................................ 1,462,374
-----------
2,809,033
-----------
Pharmaceuticals (2.8%):
63,593 Glaxo Wellcome PLC.................................... 1,853,265
-----------
</TABLE>
Continued
-28-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
International Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Deposit Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Common Stocks, continued
United Kingdon, continued
Telecommunications (2.4%):
66,986 Cable & Wireless PLC................................... $ 1,137,822
136,689 Telewest Communications PLC*........................... 471,809
-----------
1,609,631
-----------
Telecommunications--Services & Equipment (0.6%):
10,508 Energis PLC*........................................... 394,202
-----------
Transportation (1.6%):
69,141 Railtrack Group PLC.................................... 1,074,465
-----------
Utilities--Telecommunications (3.3%):
536,284 Vodafone Airtouch PLC.................................. 2,175,841
-----------
9,916,437
-----------
Total Common Stocks 63,418,150
===========
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Security Deposit Value
---------- ----------------------------------------------------- -----------
<C> <S> <C>
Commercial Paper (5.2%):
United States (5.2%):
Financial Services (5.2%):
$3,400,000 Schering-Plough Corp., 6.90%, (b) 7/5/00........... $ 3,398,697
-----------
Total Commercial Paper 3,398,697
-----------
Total Investments
(Cost $58,498,805) (a)--101.3% 66,816,847
Liabilities in excess of other assets--(1.3)% (862,914)
-----------
Total Net Assets--100.0% $65,953,933
===========
</TABLE>
-------
(a) Represents cost for federal income tax and financial reporting purposes
and differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized
appreciation......... $10,971,362
Unrealized
depreciation......... (2,653,320)
-----------
Net unrealized
appreciation......... $ 8,318,042
===========
</TABLE>
(b) Effective yield at purchase
(c) 144A security which is restricted as to resale to institutional
investors.
* Represents non-income producing securities.
Continued
-29-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
International Fund
Schedule of Portfolio Investments, Continued
June 30, 2000
(Unaudited)
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
Unrealized
Delivery Contract Market Contract Contract Market Appreciation/
Currency Date Price Price Amount Value Value (Depreciation)
-------- -------- -------- ------ ---------- -------- -------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Short Contracts
British Pound.. 7/3/00 $1.50 $1.51 $ 12,016 $ 18,018 $ 18,191 $ (173)
British Pound.. 7/5/00 1.50 1.51 19,821 29,811 30,007 (196)
Euro........... 7/3/00 0.94 0.96 155,117 146,431 148,694 (2,263)
Japanese Yen... 7/3/00 0.01 0.01 2,076,728 19,651 19,628 23
Japanese Yen... 7/4/00 0.01 0.01 4,239,763 40,471 40,073 398
---------- -------- -------- -------
Total Short
Contracts..... $6,503,445 $254,382 $256,593 $(2,211)
========== ======== ======== =======
Long Contracts
U.S. Dollar.... 7/3/00 1.00 1.00 18,018 18,018 18,018 --
U.S. Dollar.... 7/5/00 1.00 1.00 29,811 29,811 29,811 --
U.S. Dollar.... 7/3/00 1.00 1.00 19,651 19,651 19,651 --
U.S. Dollar.... 7/3/00 1.00 1.00 146,431 146,431 146,431 --
U.S. Dollar.... 7/4/00 1.00 1.00 40,471 40,471 40,471 --
---------- -------- -------- -------
Total Long
Contracts..... $ 254,382 $254,382 $254,382 --
========== ======== ======== =======
</TABLE>
See notes to financial statements.
-30-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Notes to Financial Statements
June 30, 2000
(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. The
primary investment objective of the Growth Fund is to seek capital
appreciation with current income as a secondary objective. The primary
investment objective of the International Fund is capital appreciation, with
current income as a secondary objective.
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
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
Continued
-31-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Notes to Financial Statements, Continued
June 30, 2000
(Unaudited)
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.
Risks Associated with Foreign Securities and Currencies:
Investments in securities of foreign issuers carry certain risks not
ordinarily associated with investments in securities of domestic issuers.
Such risks include future political and economic developments and the
possible imposition of exchange controls or other foreign governmental
laws and restrictions. In addition, with respect to certain countries,
there is the possibility of expropriation of assets, confiscatory
taxation, political or social instability or diplomatic developments which
could adversely affect investments in those countries.
Certain countries may also impose substantial restrictions on investments
in their capital markets by foreign entities, including restrictions on
investments in issuers or industries deemed sensitive to relevant national
interests. These factors may limit the investment opportunities available
to the International Equity Fund or result in a lack of liquidity and high
price volatility with respect to securities of issuers from developing
countries.
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 usually declared and paid monthly
for the Intermediate Income Fund. Dividends from net investment income, if
any, are usually 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.
Continued
-32-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Notes to Financial Statements, Continued
June 30, 2000
(Unaudited)
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.
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:
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 month period ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- -----------
<S> <C> <C>
Intermediate Income Fund............................. $15,220,484 $14,615,650
Growth Fund.......................................... 19,878,846 12,020,350
International Fund................................... 28,869,152 18,833,486
</TABLE>
Continued
-33-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Notes to Financial Statements, Continued
June 30, 2000
(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 and receives
compensation from the Adviser.
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 as a percentage of each Fund's average
daily net assets, subject to an annual minimum 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 0.50% 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 Funds 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.
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 Contigent 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 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 month period ended June 30, 2000, the Distributor received
approximately $269,299 from commissions earned on sales of Class A shares
and on redemption of Class B shares of the Funds, all of which the
Distributor reallowed to dealers of the Funds' shares. Of the commission
reallowed, $62,673 went to affiliated dealers.
Continued
-34-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Notes to Financial Statements, Continued
June 30, 2000
(Unaudited)
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 month period ended June 30, 2000:
<TABLE>
<CAPTION>
Intermediate Growth International
Income Fund Fund Fund
------------ -------- -------------
<S> <C> <C> <C>
Investment advisory fee waivers........... $125,171 $327,135 $126,187
Distribution Services Plan--Class A....... 31,016 12,590 32,518
Distribution Services Plan--Class B....... 77,967 119,690 42,907
-------- -------- --------
Total..................................... $234,154 $459,414 $201,612
======== ======== ========
</TABLE>
5. Capital Share Transactions:
Transactions in shares of the Funds are summarized below:
<TABLE>
<CAPTION>
Intermediate Income Fund Growth Fund International 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,
2000 1999 2000 1999 2000 1999
----------- ------------ ----------- ------------ ----------- ------------
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Capital Transactions:
Class A Shares:
Proceeds from shares
issued................ $ 1,380,169 $18,247,252 $ 4,556,883 $11,101,874 $ 5,855,038 $21,350,035
Dividends reinvested... 121,069 79,282 5,569 743,404 83,035 330,956
Cost of shares
redeemed.............. (282,929) (166,478) (474,406) (107,225) (2,790,374) (3,225,953)
----------- ----------- ----------- ----------- ----------- -----------
Class A Share
transactions.......... $ 1,218,309 $18,160,056 $ 4,088,046 $11,738,053 $ 3,147,699 $18,455,038
----------- ----------- ----------- ----------- ----------- -----------
Class B Shares:
Proceeds from shares
issued................ $ 2,040,937 $13,176,744 $13,960,561 $26,241,426 $19,963,026 $18,567,201
Dividends reinvested... 842,588 1,543,571 -- 19,795,898 27,773 616,769
Cost of shares
redeemed.............. (4,405,944) (21,007,247) (11,692,035) (21,957,827) (9,944,830) (26,045,407)
----------- ----------- ----------- ----------- ----------- -----------
Class B Share
transactions.......... $(1,522,419) $(6,286,932) $ 2,268,526 $24,079,497 $10,045,969 $(6,861,437)
----------- ----------- ----------- ----------- ----------- -----------
Total net increase
(decrease) from capital
transactions........... $ (304,110) $11,873,124 $ 6,356,572 $35,817,550 $13,193,668 $11,593,601
=========== =========== =========== =========== =========== ===========
Share Transactions:
Class A Shares:
Issued................. 146,654 1,877,777 304,697 642,764 337,022 1,503,829
Reinvested............. 12,892 8,230 355 50,657 4,567 20,127
Redeemed............... (30,031) (17,226) (31,641) (6,481) (159,200) (192,363)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class A
Shares................ 129,515 1,868,781 273,411 686,940 182,389 1,331,593
----------- ----------- ----------- ----------- ----------- -----------
Class B Shares:
Issued................. 216,838 1,335,490 932,818 1,597,846 1,132,694 1,289,972
Reinvested............. 89,746 157,387 -- 1,351,042 1,525 39,141
Redeemed............... (468,536) (2,159,027) (781,076) (1,312,227) (568,273) (1,822,269)
----------- ----------- ----------- ----------- ----------- -----------
Change in Class B
Shares................ (161,952) (666,150) 151,742 1,636,661 565,946 (493,156)
----------- ----------- ----------- ----------- ----------- -----------
Total net increase
(decrease) from share
transactions........... (32,437) 1,202,631 425,153 2,323,601 748,335 838,437
=========== =========== =========== =========== =========== ===========
</TABLE>
-35-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Intermediate Income Fund--
Class A Shares
---------------------------
May 12, 1999
Six Months to
Ended December 31,
June 30, 2000 1999 (a)
------------- ------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 9.46 $ 9.88
------- -------
Investment Activities
Net investment income........................... 0.29 0.33
Net realized and unrealized gains (losses) from
investment transactions........................ (0.08) (0.37)
------- -------
Total from Investment Activities................. 0.21 (0.04)
------- -------
Distributions
Net investment income........................... (0.29) (0.37)
Net realized gains.............................. -- (0.01)
------- -------
Total Distributions.............................. (0.29) (0.38)
------- -------
Net Asset Value, End of Period................... $ 9.38 $ 9.46
======= =======
Total Return (excludes sales charge)............. 2.24%(b) (.45)%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $18,754 $17,670
Ratio of expenses to average net assets......... 0.85%(c) 0.85%(c)
Ratio of net investment income to average net
assets......................................... 6.17%(c) 5.81%(c)
Ratio of expenses to average net assets*........ 1.69%(c) 1.66%(c)
Portfolio Turnover (d).......................... 30.15% 37.78%
</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.
(c) 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.
-36-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Intermediate Income Fund--Class B Shares
----------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
2000 1999 1998 1997 1996 1995
----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 9.46 $ 10.17 $ 10.01 $ 9.84 $ 10.17 $ 9.14
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.27 0.54 0.54 0.55 0.54 0.53
Net realized and
unrealized gains
(losses) from
investment
transactions.......... (0.07) (0.73) 0.17 0.17 (0.33) 1.03
------- ------- ------- ------- ------- -------
Total from Investment
Activities............. 0.20 (0.19) 0.71 0.72 0.21 1.56
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.27) (0.51) (0.54) (0.55) (0.54) (0.53)
Net realized gains..... -- (0.01) (0.01) -- -- --
------- ------- ------- ------- ------- -------
Total Distributions..... (0.27) (0.52) (0.55) (0.55) (0.54) (0.53)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.39 $ 9.46 $ 10.17 $ 10.01 $ 9.84 $ 10.17
======= ======= ======= ======= ======= =======
Total Return (excludes
redemption charge)..... 2.17%(a) (1.90)% 7.29% 7.60% 2.22% 17.47%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000).......... $31,349 $33,111 $42,388 $33,339 $27,568 $23,470
Ratio of expenses to
average net assets.... 1.20%(b) 1.16% 1.10% 1.10% 1.10% 1.10%
Ratio of net investment
income to average net
assets................ 5.81%(b) 5.35% 5.37% 5.65% 5.50% 5.49%
Ratio of expenses to
average net assets*... 2.19%(b) 2.17%** 2.37%** 2.62%** 2.52%** 2.64%
Portfolio Turnover (c). 30.15% 37.78% 33.89% 60.05% 30.25% 31.57%
</TABLE>
-------
* During the period, certain expenses were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
** During the years ended December 31, 1999, 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) Not annualized.
(b) Annualized.
(c) 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.
-37-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Growth Fund--
Class A shares
--------------------------
Six Months May 12, 1999
Ended to
June 30, December 31,
2000 1999 (a)
----------- ------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $ 15.02 $ 17.39
------- -------
Investment Activities
Net investment income............................ 0.02 0.01
Net realized and unrealized gains (losses) from
investment transactions......................... 0.35 (0.24)
------- -------
Total from Investment Activities.................. 0.37 (0.23)
------- -------
Distributions
Net investment income............................ -- --
Net realized gains............................... -- (2.14)
------- -------
Total Distributions............................... -- (2.14)
------- -------
Net Asset Value, End of Period.................... $ 15.39 $ 15.02
======= =======
Total Return (excludes sales charge).............. 2.46%(b) (0.91)%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $14,780 $10,318
Ratio of expenses to average net assets.......... 1.20%(c) 1.20%(c)
Ratio of net investment income to average net
assets.......................................... 0.32%(c) 0.20%(c)
Ratio of expenses to average net assets*......... 1.78%(c) 1.82%(c)
Portfolio Turnover (d)........................... 7.38% 77.18%
</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.
(c) 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.
-38-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Growth Fund--Class B
------------------------------------------------------------------------------------
Six Months
Ended Year Ended Year Ended Year Ended Year Ended Year Ended
June 30, December 31, December 31, December 31, December 31, December 31,
2000 1999 1998 1997 1996 1995
----------- ------------ ------------ ------------ ------------ ------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.......... $ 14.94 $ 15.29 $ 15.72 $ 13.57 $ 12.07 $ 9.74
-------- -------- -------- -------- ------- -------
Investment Activities
Net investment income (loss). (0.02) (0.06) -- 0.04 0.07 0.10
Net realized and unrealized
gains (losses) from
investment transactions..... 0.34 1.85 0.84 3.86 1.85 3.12
-------- -------- -------- -------- ------- -------
Total from Investment
Activities................... 0.32 1.79 0.84 3.90 1.92 3.22
-------- -------- -------- -------- ------- -------
Distributions
Net investment income........ -- -- -- (0.04) (0.07) (0.10)
Net realized gains........... -- (2.14) (1.27) (1.71) (0.35) (0.79)
-------- -------- -------- -------- ------- -------
Total Distributions........... -- (2.14) (1.27) (1.75) (0.42) (0.89)
-------- -------- -------- -------- ------- -------
Net Asset Value, End of
Period....................... $ 15.26 $ 14.94 $ 15.29 $ 15.72 $ 13.57 $ 12.07
======== ======== ======== ======== ======= =======
Total Return
(excludes redemption charge). 2.14%(a) 12.16% 5.96% 29.15% 15.87% 33.32%
Ratios/Supplementary Data:
Net Assets, End of Period
(000)....................... $163,997 $158,286 $136,976 $104,309 $58,907 $30,906
Ratio of expenses to average
net assets.................. 1.75%(b) 1.75% 1.69% 1.72% 1.74% 1.75%
Ratio of net investment
income to average net
assets...................... (0.25)%(b) (0.41)% (0.02)% 0.22% 0.61% 0.90%
Ratio of expenses to average
net assets*................. 2.28%(b) 2.35%** 2.53%** 2.66%** 2.55%** 2.81%
Portfolio Turnover (c)....... 7.38% 77.18% 91.32% 53.26% 33.98% 48.91%
</TABLE>
------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
** During the years ended December 31, 1999, 1998, 1997 and 1996 the Growth
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) Not Annualized.
(b) Annualized.
(c) 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.
-39-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
International Fund--Class A Shares
---------------------------------------
Six Months Ended May 12, 1999 to
June 30, 2000 December 31, 1999 (a)
---------------- ---------------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.... $ 18.19 $ 13.76
------- -------
Investment Activities
Net investment income (loss)........... 0.41** (0.01)
Net realized and unrealized gains
(losses) on investments............... (1.66) 4.81
------- -------
Total from Investment Activities........ (1.25) 4.80
------- -------
Distributions
Net investment income.................. (0.36) (0.10)
Net realized gains..................... -- (0.27)
------- -------
Total Distributions..................... (0.36) (0.37)
------- -------
Net Asset Value, End of Period.......... $ 16.58 $ 18.19
======= =======
Total Return (excludes sales charge).... (6.87)%(b) 35.09%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)........ $25,104 $24,215
Ratio of expenses to average net
assets................................ 1.45%(c) 1.45%(c)
Ratio of net investment income to
average net assets.................... 4.66%(c) 0.02%(c)
Ratio of expenses to average net
assets*............................... 2.12%(c) 2.28%(c)
Portfolio Turnover (d)................. 31.16% 57.73%
</TABLE>
-------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
** Net investment income is calculated using the average shares method.
(a) Period from commencement of operations.
(b) Not annualized.
(c) 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.
-40-
<PAGE>
MMA PRAXIS MUTUAL FUNDS
Financial Highlights
<TABLE>
<CAPTION>
International Fund--Class B Shares
------------------------------------------------------
Six Months Year Year April 1, 1997
Ended Ended Ended through
June 30, December 31, December 31, December 31,
2000 1999 1998 1997 (a)
----------- ------------ ------------ -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 18.21 $ 13.05 $ 10.62 $ 10.00
------- ------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.39** (0.08) (0.02) (0.05)
Net realized and
unrealized gains
(losses) on
investments........... (1.68) 5.54 2.56 0.69
------- ------- ------- -------
Total from Investment
Activities............. (1.29) 5.46 2.54 0.64
------- ------- ------- -------
Distributions
Net investment income.. (0.32) (0.03) (0.10) --
Net realized gains..... -- (0.27) (0.01) (0.02)
------- ------- ------- -------
Total Distributions..... (0.32) (0.30) (0.11) (0.02)
------- ------- ------- -------
Net Asset Value, End of
Period................. $ 16.60 $ 18.21 $ 13.05 $ 10.62
======= ======= ======= =======
Total Return (excludes
redemption charge)..... (7.10)%(b) 42.00% 23.98% 6.40%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000).......... $40,849 $34,509 $31,163 $17,245
Ratio of expenses to
average net assets.... 2.00%(c) 2.00% 1.99% 2.00%(c)
Ratio of net investment
income to average net
assets................ 4.46%(c) (0.28)% (0.32)% (0.93)%(c)
Ratio of expenses to
average net assets*... 2.62%(c) 2.82% 3.19% 4.29%(c)
Portfolio Turnover (d). 31.16% 57.73% 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.
** Net investment income is calculated using the average shares method.
(a) Period from commencement of operations.
(b) Not annualized.
(c) 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>
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 LLP
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, 2000
MMA Praxis Mutual Funds
Intermediate Income Fund
Growth Fund
International Fund
[LOGO OF MMA PRAXIS]
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.
8/00
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