FILED BY:     SCHWARTZ INVESTMENT TRUST
                                               PURSUANT TO RULE 425 UNDER THE
                                               SECURITIES ACT OF 1933 AND
                                               DEEMED FILED PURSUANT TO RULE
                                               14a-12 OF THE SECURITIES
                                               EXCHANGE ACT OF 1934

                                 SUBJECT       CATHOLIC EQUITY FUND, A SERIES OF
                                 COMPANY:      THE CATHOLIC FUNDS, INC.

                                 COMMISSION    THE CATHOLIC FUNDS, INC.
                                 FILE NO.:     INVESTMENT COMPANY ACT OF
                                               1940 NO. 811-09177


AVE MARIA RISING IN ASSETS AND SHAREHOLDERS
THROUGH MERGER WITH THE CATHOLIC EQUITY FUND

Ave Maria Mutual Funds  welcomes  Catholic  Funds'  shareholders  to the growing
family

January 26, 2007 - Bloomfield Hills, Michigan.

Bloomfield Hills based Schwartz Investment Counsel, Inc., the investment adviser
to the Ave Maria Mutual Funds and Catholic  Financial  Services  Corporation,  a
subsidiary of Catholic  Knights of  Milwaukee,  Wisconsin,  today  announced the
proposed  merger of The Catholic  Equity Fund into the Ave Maria Rising Dividend
Fund (Ticker: AVEDX).

The boards of both mutual  fund groups have voted to approve the merger  subject
to Catholic  Equity Fund  shareholders'  approval and the  necessary  regulatory
approvals. The merger is expected to close on or before March 31, 2007.

"We are thrilled  and honored to have the  shareholders  of The Catholic  Equity
Fund join the family of Ave Maria Mutual Funds," said George P.  Schwartz,  CFA,
president and CEO of Schwartz Investment  Counsel,  Inc., the investment adviser
to the Ave Maria Mutual  Funds.  "The Ave Maria Rising  Dividend  Fund will be a
good home for the Catholic Equity Fund  shareholders,  and they will have access
to our entire family of no-load Catholic mutual funds. All five Ave Maria Mutual
Funds  and  the  Ave  Maria  Money  Market  Account  have  different  investment
objectives, and therefore offer diversification opportunities to Catholic Equity
Fund shareholders.  Each follows the moral guidelines  established by the Funds'
Catholic Advisory Board."

"The Catholic Equity Fund is committed to investing in  organizations  that meet
the moral  guidelines  that we support,  and the Ave Maria Rising  Dividend Fund
shares that  commitment,"  said William O'Toole,  president of Catholic Knights.
"This merger will





help ensure that our members continue to have the opportunity to invest in funds
that  have  traditional  Catholic  values.  As the  largest  shareholder  in the
Catholic  Equity Fund,  we think this is a positive  development  for all of our
members."

"We are pleased to be joining  forces with the Ave Maria  Mutual Funds and fully
support this  merger,"  said Dan  Steininger,  president of The Catholic  Equity
Fund. "This merger will give our investors another very solid option to consider
that is  consistent  with our Catholic  values.  It is a win-win  situation  for
everyone."

A special meeting of the shareholders of the Catholic Equity Fund will be called
and held for the purpose of seeking shareholder approval of the proposed merger.
Shareholders   of  the   Catholic   Equity  Fund  will  soon   receive  a  Proxy
Statement/Prospectus  that will  describe  and seek their  approval of the above
merger and explain the similarities  and differences  between the two Funds. THE
SHAREHOLDERS   OF  THE  CATHOLIC  EQUITY  FUND  ARE  URGED  TO  READ  THE  PROXY
STATEMENT/PROSPECTUS   CAREFULLY  WHEN  THEY  RECEIVE  IT  BECAUSE  IT  CONTAINS
IMPORTANT INFORMATION.

The Ave Maria Rising Dividend Fund and the Catholic Equity Fund will provide the
Proxy  Statement/Prospectus  to shareholders of the Catholic Equity Fund free of
charge.  Shareholders  may also obtain the Proxy  Statement/Prospectus,  and any
other relevant documents, for free at the website of the Securities and Exchange
Commission  (www.sec.gov).  Shareholders may also obtain the following documents
of the Ave Maria  Rising  Dividend  Fund free of charge by writing  to  Schwartz
Investment  Trust, 3707 West Maple Road, Suite 100,  Bloomfield Hills,  Michigan
48301,  or by calling  1-866-AVE-MARIA:  a Statement of  Additional  Information
relating to the Proxy  Statement/Prospectus,  a  Prospectus  and a Statement  of
Additional  Information each dated May 1, 2006, an Annual Report to Shareholders
for the year ended December 31, 2005, and a Semi-Annual  Report to  Shareholders
for the six-month  period ended June 30, 2006.  Shareholders may also obtain the
following documents of the Catholic Equity Fund free of charge by writing to the
Fund at 1100  West  Wells  Street,  Milwaukee,  Wisconsin  53233  or by  calling
1-877-222-2402:  a Prospectus  and a Statement of  Additional  Information  each
dated February 1, 2006, and an Annual Report to Shareholders of the Fund for the
year ended September 30, 2006.

The Schwartz Investment Trust and The Catholic Funds, Inc., and their respective
trustees,  directors and executive officers, may be deemed to be participants in
the  solicitation  of proxies in respect  of the  proposed  merger.  Information
regarding  Schwartz  Investment  Trust's  trustees  and  executive  officers  is
contained in the Ave Maria Rising  Dividend  Fund's  Prospectus and Statement of
Additional Information, each dated May 1, 2006, which are filed with the SEC. As
of December  31,  2006,  Schwartz  Investment  Trust's  trustees  and  executive
officers  beneficially  owned less than 1% of all outstanding  shares of the Ave
Maria Rising Dividend Fund.  Information  regarding The Catholic  Funds,  Inc.'s
directors  and  executive  officers is contained in the Catholic  Equity  Fund's
Prospectus and Statement of Additional Information, each dated February 1, 2006,
which are filed with the SEC. As of  December  31,  2006,  The  Catholic  Funds,
Inc.'s directors and executive  officers  beneficially owned less than 1% of all
outstanding shares of the





Catholic Equity Fund. A more complete description will be available in the Proxy
Statement/Prospectus.

ABOUT AVE MARIA MUTUAL FUNDS:
- -----------------------------
Ave Maria  Mutual  Funds began  operations  with the  inception of the Ave Maria
Catholic  Values Fund (Ticker:  AVEMX) on May 1, 2001.  Four  additional  mutual
funds were added over the next five years.  As of December 31, 2006,  net assets
within the Ave Maria Mutual Funds  totaled over $435  million.  Ave Maria Mutual
Funds are designed  specifically for morally  responsible  investors looking for
financially sound investments in companies that do not violate core teachings of
the Catholic Church.  Morally  responsible  investors across America can use our
five no-load mutual funds to build well-diversified  investment portfolios.  Ave
Maria  Mutual Funds place equal  emphasis on  investment  performance  and moral
criteria  in  selecting  securities.  That  means  shareholders  don't  have  to
sacrifice financial performance for their pro-life and pro-family beliefs.

ABOUT SCHWARTZ INVESTMENT COUNSEL, INC.:
- ----------------------------------------
Schwartz Investment Counsel,  Inc. serves as Investment Adviser to the Ave Maria
Mutual Funds. A Registered  Investment  Adviser  established  in 1980,  Schwartz
Investment  Counsel,  Inc. is  committed to  providing  high quality  investment
counsel to families and fiduciaries  that choose to take a disciplined  approach
to investing. Through rapidly changing economic and market conditions,  Schwartz
Investment  Counsel,  Inc.  provides  continuity  and  stability  to  investment
portfolios   through   fundamental   security   analysis  and  our  basic  value
orientation.

ABOUT CATHOLIC KNIGHTS:
- -----------------------
Catholic Knights is a not-for-profit  membership organization focused on putting
Catholic values into action.  For more than 120 years,  Catholic Knights has put
Catholic  values  into  action  through  its  charitable  outreach,  scholarship
programs,  trusted  financial  products,  and  support for  parishes  and parish
schools,  as well as  opportunities  for  members  to  participate  in  making a
difference  in their  parishes  and  communities.  Each year,  Catholic  Knights
members  support  activities  that  raise  more than  $1.2  million  to  benefit
parishes, schools and communities.

For additional  information  regarding the Ave Maria Rising  Dividend Fund, this
merger,  Schwartz  Investment  Counsel,  Inc. or the Ave Maria  Mutual  Funds in
general, please contact:

ROBERT C. SCHWARTZ, DIRECTOR OF MARKETING
AVE MARIA MUTUAL FUNDS &
SCHWARTZ INVESTMENT COUNSEL, INC.
3707 WEST MAPLE ROAD, SUITE 100
BLOOMFIELD HILLS, MICHIGAN 48301
248-644-7446 PHONE
RCS@SCHWARTZINVEST.COM

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES FOR SALE.

PROSPECTIVE  INVESTORS  SHOULD READ THE  PROSPECTUS  CAREFULLY  AND CONSIDER THE
FUND'S  INVESTMENT  OBJECTIVES,  RISKS,  CHARGES AND EXPENSES  CAREFULLY  BEFORE
INVESTING.  THE PROSPECTUS,  WHICH CAN BE OBTAINED BY CALLING 1-866-AVE-MARIA OR
ONLINE AT WWW.AVEMARIAFUNDS.COM,  CONTAINS THIS AND OTHER IMPORTANT INFORMATION.
DISTRIBUTED BY ULTIMUS FUND DISTRIBUTORS, LLC.