N-CSRS 1 l26692anvcsrs.htm MMA PRAXIS MUTUAL FUNDS N-CSRS MMA Praxis Mutual Funds N-CSRS
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number      811-8056          
MMA Praxis Mutual Funds
 
(Exact name of registrant as specified in charter)
P.O. Box 483, Goshen, IN 46527
 
(Address of principal executive offices) (Zip code)
Anthony Zacharski, Dechert LLP, 200 Clarendon Street, 27th Floor, Boston, MA 02116
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (513) 362-8000                    
Date of fiscal year end: 12/31                    
Date of reporting period: 06/30/07                    
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Semi-annual Report for MMA Praxis Mutual Funds.

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MMA Praxis Mutual Funds
Notice of privacy policy & practices
 
MMA Praxis Mutual Funds recognizes and respects the privacy concerns and expectations of our customers(1). We are committed to maintaining the privacy and confidentiality of your personal information. We provide this notice so that you will know what kinds of information we collect and the circumstances in which that information may be disclosed to third parties.
 
We collect nonpublic personal information about our customers from the following sources:
 
•  Account applications and other forms — which may include a customer’s name, address, social security number, and information about a customer’s investment goals and risk tolerance;
 
•  Account history — including information about the transactions and balances in a customer’s account(s); and
 
•  Correspondence — written, telephonic or electronic between a customer and MMA Praxis Mutual Funds or service providers to MMA Praxis Mutual Funds.
 
We may disclose all of the information described above to certain third parties who are not affiliated with MMA Praxis Mutual Funds under one or more of these circumstances:
 
•  As authorized — if you request or authorize the disclosure of the information.
 
•  As permitted by law — for example, sharing information with companies that maintain or service customer accounts for MMA Praxis Mutual Funds is essential for us to provide shareholders with necessary or useful services with respect to their accounts.
 
•  Under joint agreements — we may also share information with companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements.
 
We require service providers to MMA Praxis Mutual Funds:
 
•  to maintain policies and procedures designed to assure only appropriate access to, and use of information about, customers of MMA Praxis Mutual Funds; and
 
•  to maintain physical, electronic and procedural safeguards that comply with federal standards to guard nonpublic personal information of customers of MMA Praxis Mutual Funds.
 
We will adhere to the policies and practices described in this notice regardless of whether you are a current or former shareholder of MMA Praxis Mutual Funds.
 
 
1For purposes of this notice, the terms “customer” or “customers” include individuals who provide nonpublic personal information to MMA Praxis Mutual Funds, but do not invest in MMA Praxis Mutual Funds shares.
[MMA LOGO]
 
 
This privacy policy is not part of the prospectus.

Notice of privacy policy & practices   

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Glossary of Terms
 
Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index and includes treasury issues, agency issues, corporate bond issues and mortgage-backed securities.
 
The Morgan Stanley Capital Index-Europe, Australia and the Far East Index (MSCI-EAFE) is an unmanaged Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australia and the Far East.
 
The Morgan Stanley Capital AC World Free-(ex. U.S.) Index is a widely recognized, unmanaged index composed of a sample of companies representative of the markets of both developed and emerging markets throughout the world, excluding the United States.
 
Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index”), is a widely recognized index of 500 selected common stocks, most of which are listed on the New York Stock Exchange.
 
Standard & Poor’s 500/Citigroup Value Index (the “S&P 500/Citigroup Value Index”), is unmanaged and is constructed by dividing the stocks in the S&P 500 Index into two categories, growth and value, according to price-to-book ratios. Prior to December 16, 2005, this index represented the S&P/Barra Value Index.
 
MSCI — Prime Market Value Index represents the value companies of the MSCI Prime Market 750 Index. The MSCI Prime Market 750 Index represents the Universe of large and medium capitalization companies in the U.S. equity market.
 
MSCI — Prime Market Growth Index represents the growth companies of the MSCI US Prime Market 750 Index. The MSCI Prime Market 750 Index represents the universe of large and meduim capitalization companies in the U.S.equity market.
 
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.
 
Gross Domestic Product (the “GDP”), is the measure of the market value of the goods and services produced by labor and property in the United States.
 
Consumer Price Index (the “CPI”), is an index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period.
 
Price-to-Earnings Ratio (the “P/E Ratio”), is a valuation ratio of a company’s current share price compared to its per-share earnings.
 
SuperComposite 1500 Index. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price to-book ratio, and three-year sales-per share growth value, compared to the S&P 500 Index.
 
The above indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. An investor cannot invest directly in an index, although they can invest in the underlying securities.

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Message from the President
 
Dear MMA Praxis Shareholder:
 
After an uninspired first quarter, stocks around the world surged in the second quarter. Domestically, larger companies outperformed smaller ones, and growth stocks are now ahead of value stocks for the year-to-date. International stocks had another strong quarter and out-returned the U.S. market again. The overall U.S. stock market was up a bit over 7 percent for the first half, while international stocks gained almost 12 percent. The broad bond market has been weak in 2007, gaining less than 1 percent. The following chart highlights the six-month performance of major market indexes:
 
                                 
    First Quarter 2007
 		    Second Quarter 2007
 		    Year To Date 2007
 		    Inception To Date 2007
 		 
    (1/1/07-3/31/07)     (4/1/07-6/30/07)     (1/1/07-6/30/07)     (5/1/07-6/30/07)  
 
S&P 500 Index1
    0.64 %     6.28 %     6.96 %     NA  
Lehman Brothers Aggregate Bond Index1
    1.50 %     –0.52 %     0.98 %     NA  
MSCI Prime Value Index1
    0.95 %     5.75 %     6.75 %     NA  
MSCI EAFE Index1
    4.15 %     6.67 %     11.09 %     NA  
MSCI Prime Growth Index1
    1.25 %     6.67 %     8.00 %     2.24 %
Russell 2000 Index1
    1.95 %     4.42 %     6.45 %     2.58 %
The current market environment is interesting. In every economic cycle there are points where market indicators are particularly confusing. During times like these, investors who try to read the economic tea leaves can be easily whipsawed. So far, 2007 seems like one of these types of market environments as investors vacillated between fears of economic weakness (driven by the housing market) and strength (driven by the private equity buyout boom and a strong global economy). At MMA, our portfolio managers have been reading and hearing an unusually wide variety of opinions and concerns in recent months from both investment professionals and everyday investors. Headline news, such as the battering taken by several hedge funds as sub-prime mortgage debt was marked down, can create a powerful urge in investors to react and “do something.” In our experience, however, succumbing to this temptation rarely adds value. As stated many times in previous letters to MMA Praxis shareholders, we encourage our investors to establish an asset allocation strategy that is consistent with one’s risk tolerance, investment objectives, and time horizon, and stay the course with periodic rebalancing back to the strategic asset percentages.
 
Portfolio performance
 
MMA Praxis Intermediate Income Fund
With the Lehman Aggregate Bond Index yielding about 5.7 percent (as of mid-July), intermediate-term investment-grade bond yields are about average relative to their history, and real yields are also about average (T-Bill real yields are actually above average). However, reported inflation has been heavily influenced by the recent volatility in oil prices, so real yields based on reported inflation can be equally volatile. Underlying core inflation is higher than reported inflation, but even by this measure, real yields are in a fair-value range. In looking at potential expected returns from intermediate-term corporate bonds, one could easily make a case that total returns are likely to fall in a 4-6 percent range on average over the next few years, which is in line with their long-term historical average. While some investors may be inclined to look to other asset classes for potential higher returns, the astute investor recognizes the important role bonds can play by insuring portfolios against economic shocks. Although the economy appears to be doing well, there are clearly structural, macro-level, and geopolitical risks. Given this background, bonds should continue to be useful as a portfolio diversifier.

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1  Please refer to the Glossary of Terms on page A for additional information on the referenced benchmark indices.

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The Class A Share (NAV) posted a small gain of 0.57 percent for the first six months of 2007. These returns lagged the benchmark established for the Income Fund (Lehman Aggregate Bond Index), which returned 0.98 percent over the same time. For an in-depth analysis of this Fund’s strategy, please read the co-portfolio managers’ commentary found later in this report.
 
MMA Praxis Core Stock Fund
From November 1999 through February of this year, large-caps (Standard & Poor 500) had a total cumulative return of only 9.6 percent (1.5 percent annualized) compared to 72.7 percent (9 percent annualized) for small-cap stocks (Russell 2000 Index). Using historical valuation metrics, this sizable performance discrepancy leaves large-cap stocks bargain-priced compared to stocks of smaller companies. Additionally, stocks of larger companies tend to do better when the U.S. dollar is weak (foreign earnings are worth more when converted back to U.S. dollars and U.S. exports become more competitive), which is partly why mega-cap stocks are now experiencing stronger earnings growth than smaller companies. Very large company stocks also tend to perform much better than small-caps late in the economic cycle. We may or may not be late in this cycle, but nearly all economists would agree that we are clearly past the early stage.
 
A reasonable question to ask is whether large-cap stocks are cheap on an absolute basis, or only a “less-pricey segment” of an overall market that is expensive. Whether the overall market is expensive is a good question, especially after its very strong second quarter. A plausible short answer is that domestic large-caps are reasonably valued and therefore attractive. However, as usual, another argument can be made that there is risk to this view. U.S. corporations have experienced the greatest earnings boom since World War II, thanks partly to profit margins hitting a 40-year high. So, a reasonable question is: While the stock market looks reasonably valued or even undervalued based on earnings, if profit margins were to move back to “normal” levels wouldn’t the overall stock market then be overvalued? While there is no easy answer to this important question, we are of the opinion that profit margins will eventually diminish, as workers ask for a greater piece of the “profit pie.”
 
For the first six months of 2007, the MMA Praxis Core Stock Fund Class A Share (NAV) returned 4.92 percent. These returns were less than the established benchmark (S&P 500) for the Praxis Core Stock Fund, which returned 6.96 percent. For a detailed explanation of those factors that contributed to the underperformance, please read the portfolio managers’ commentary, found later in this report.
 
MMA Praxis Value Index Fund
For the first half of 2007, the MMA Praxis Value Index Fund A Shares (NAV) were up 4.57 percent. The benchmark index for this Fund, the MSCI U.S. Prime Market Value Index, gained 6.75 percent. (Note: it is not possible to invest directly in an index, which does not incur expenses like an index fund.). Over the past five years, A Shares have delivered average annualized returns of 11.69 percent. For investors who are looking for large-cap value exposure in their portfolio, and are committed to an investment process that aligns their values with financial decisions, the MMA Praxis Value Index Fund has proven to be a solid investment choice.
 
MMA Praxis Growth Index Fund
The MMA Praxis Growth Index Fund was introduced on May 1 and was designed to compliment the MMA Praxis Value Index Fund. Both funds are managed by Chad Horning, CFA, who will manage the Growth Index Fund through a passive indexing strategy intended to replicate the performance of large and mid-sized growth stocks. Combining the Value and Growth Index Funds will allow investors to gain broad, low-cost exposure to the U.S. stock market. As with all MMA Praxis Funds, the Growth Index Fund will integrate MMA’s stewardship investing core values. This process includes screening companies based on ethical values, shareholder advocacy to encourage companies to be more responsible businesses and corporate citizens, and community development investing.
 
Since May 1, the Fund (Class A Share, NAV) has returned 1.70 percent, slightly trailing its benchmark, the MSCI U.S. Prime Growth Index, which generated a return of 2.24 percent for the same brief time.
 
MMA Praxis International Fund
Foreign stock markets continued to deliver outsized returns relative to their U.S. counterparts during the first half of 2007. This continues a trend that is now more than five years in the running. Global conditions have remained close to ideal for international stocks. Low interest rates worldwide generated a

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wave of borrowing and investment. European and Japanese companies continued to restructure, squeezing out larger profits which have helped boost share prices. And emerging markets continued to post very impressive returns for the first half of ’07. Against this backdrop, the MMA Praxis International Fund Class A Share (NAV) returned 9.19 percent. The Fund underperformed its benchmark, the Morgan Stanley EAFE Index, which returned 11.09 percent.
 
MMA Praxis Small Cap Fund
On May 1, the MMA Praxis Small Cap Fund was added to the MMA Praxis Fund family. This new fund is one of the few socially responsible investment options available for those interested in investing in small companies. After an exhaustive search for a top-tier investment manager for the Fund, Luther King Capital Management, Fort Worth, Texas, was selected. Your Fund’s trustees chose Luther King on the basis of the firm’s outstanding reputation for quality, integrity, and stability, as well as their emphasis on achieving competitive, risk-adjusted returns. Fund managers Luther King and Steven Purvis are core style managers, allowing them to add both value and growth-style stocks to the portfolio. We are pleased to have a firm with the outstanding reputation of Luther King to steward the assets of this new mutual fund.
 
Since the Fund’s inception on May 1, 2007, an investor in the Class A Share (NAV) would have experienced a return of 2.90 percent, which is better than the 2.57 percent delivered by the Fund’s benchmark, the Russell 2000 Index.
 
Closing thoughts
The first half of 2007 saw several major developments in MMA’s stewardship investing activities. Please be sure to read Mark Regier’s commentary later in this report for a thorough discussion of these important initiatives.
 
We remain grateful for the trust and confidence you have demonstrated in MMA Praxis Mutual Funds. We take our stewardship responsibilities seriously and endeavor to generate both financial and social returns on your investments.
 
Thank you for allowing us to partner with you in meeting your financial planning goals.
 
Sincerely,
 
-s- John L. Liechty
John L. Liechty
President, MMA Praxis Mutual Funds

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MMA Praxis Stewardship Investing Report
 
U.S. shareholder rights threatened
Word has been circulating for several months about potential rule changes at the Securities and Exchange Commission (SEC) that could dramatically alter the rights of shareholders to file advisory resolutions with the U.S. corporations in their portfolios. MMA considers this right of engagement a fundamental part of our practice of stewardship investing.
 
The SEC will disclose just what, if any, changes will be proposed during its open meeting on July 25. MMA, along with the entire social investment community has been active for weeks, contacting the SEC commissioners, members of Congress, and other institutional investors regarding the significant negative impact we believe such changes could have.
 
Why is this a big deal for investors? The rule under consideration, 14-a-8 of the Securities and Exchange Act of 1934, governs the ability of shareholders to file advisory (or precatory) resolutions on the annual proxy statements of the corporations of which they are part owners. Over time this has proven to be a relatively efficient, well-governed process facilitating meaningful dialogue between the company and concerned investors. It is a system that safeguards the interests of both investors and corporations to a meaningful degree. Over the past 40 years in particular, this rule has been the basis for transformative engagements yielding dramatic and creative solutions to issues of social, environmental, corporate governance, and financial performance. Unfortunately, there is no guarantee these positive strides would continue to prevail, should this foundational right be lost or substantially weakened.
 
While one may not agree with the substance of every shareholder resolution (certainly MMA does not), the right of even small investors to file such resolutions is one of the few effective countervailing forces to the dramatic increase in the power and influence of the modern corporation. Rest assured MMA and the MMA Praxis Mutual Funds will be active participants in this debate.
 
Up-to-date information on the state of the SEC’s proposals and concerned investors’ response can be viewed by visiting the Stewardship Investing section of MMA-online (www.mma-online.org).
 
Workshop on advocacy with Chinese firms
China has been in the news lately for safety concerns about its products. A variety of food and drug exports have been tainted with toxic substances and even jewelry has been found to contain harmful electronic waste. The rise of China as a global economic superpower has far-reaching implications in the field of corporate social responsibility. Chris Meyer, MMA’s stewardship investing research specialist, recently participated in a workshop that focused on corporate social responsibility in China and the potential of shareholder advocacy with Chinese companies. The workshop was organized in partial response to the negative headlines about Chinese goods. The goal was to try to use the situation as an opportunity to promote social responsibility within a range of Chinese companies.
 
The workshop provided an overview of Chinese corporate law and served as a primer for possible shareholder engagement with Chinese firms. Shareholder advocacy with Chinese firms remains a difficult and daunting undertaking. Most shares in domestic companies are owned by the Chinese government and shareholders have few legal rights. The concept of corporate social responsibility is also new in China, and interpretations vary. Socially concerned investors have had little engagement in China so far. But they hope to open the door to meaningful advocacy in the coming years as Chinese companies become an ever more important part of global portfolios and a significant influence on the practices of other companies. MMA owns shares of several Chinese companies through the MMA Praxis International Fund. (See the Fund’s commentary in this report for additional details.)
 
Dell unveils environmental initiative
Dell has officially announced its Zero Carbon Initiative, a series of environmental measures meant to position the company as the greenest technology company on Earth. It will continue to maximize the energy efficiency of Dell products and over time offset their carbon impact. The zero-carbon initiative will also include product lifecycle assessments, management of Dell’s direct and indirect climate impacts, reduction of the company’s carbon intensity, and partnership with customers in reducing waste.

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According to CEO Michael Dell, “Dell will do its part to protect the Earth’s climate, from providing energy-efficient IT products to using environmentally responsible practices we hope others will embrace.”
 
Along with other institutional investors, MMA has been meeting with Dell management on a regular basis for several years, analyzing sustainability reports and encouraging the company to further its social practices. The zero-carbon initiative is a positive result of integrating environmental factors into Dell’s business planning process. MMA holds Dell shares in the MMA Praxis Core Stock Fund. (See the Fund’s commentary in this report for additional details.)
 
Resolutions filed on executive compensation
 
The vast majority of Americans—and even institutional money managers—feel executive compensation is out of control. As a possible way to keep executive pay in check, some institutional shareholders have turned to shareholder activism. MMA Praxis co-filed shareholder resolutions at four companies (Procter & Gamble, Sun Microsystems, Sara Lee, and Cisco Systems) in April and May on this issue of executive compensation.
 
The resolutions call for each firm to grant shareholders an advisory vote on the pay of the company’s top executives. In other words, shareholders would have a say on pay. Company management and the board of directors could then use the results as an owners opinion poll of how well they are handling the issue.
 
Recently, MMA Praxis and other filers withdrew the Proctor & Gamble resolution in favor of productive dialogue with P&G management. P&G has a Compensation & Leadership Development Committee composed of independent directors, and has a pay model based on company and individual performance. This is a good start, and the filers hope to expand this policy to include shareholder input. A roundtable meeting is scheduled for late July.
 
Sustainability reporting at national grid
National Grid USA, a subsidiary of National Grid (United Kingdom), is an electric utility specializing in the transmission and distribution of electricity and natural gas with customers primarily in the Northeast. National Grid USA has begun talks with a stakeholder team organized by CERES (Coalition for Environmentally Responsible Economies), over its plans to produce a sustainability report and its overall environmental efforts. MMA Praxis is a member of this stakeholder team.
 
The first meeting of this dialogue took place in late June and focused on National Grid’s proposed outline for their report. It’s an ambitious undertaking, covering virtually all aspects of National Grid’s environmental and social impact. The stakeholder team provided input on the outline and made suggestions. MMA Praxis is especially concerned about greenhouse gas (GHG) emissions, and made this clear to company management. Since National Grid delivers electricity and natural gas to customers rather than generating it directly, areas of GHG focus are on pipeline efficiency (up to 25 percent of gas is lost while in the pipe network) and working with consumers to decrease their use of gas and electricity through conservation and efficiency measures.
 
Wal-Mart update
After years of prodding and shareholder resolutions filed by MMA Praxis and other concerned social investors, Wal-Mart’s long-anticipated, inaugural sustainability report is scheduled for release in late July. The comprehensive social and environmental report will cover areas such as company diversity, supplier factory conditions, and fuel usage and emissions of the company truck fleet.
 
In April, MMA Praxis participated in a conference call regarding Wal-Mart’s 2006 Ethical Sourcing Report. The report documents the conditions in overseas factories that supply Wal-Mart’s merchandise, as confirmed through factory audits. The results show that although the audit process is evolving in a positive way, significant improvement is needed to bring many factories into compliance with Wal-Mart (and human rights) standards. The Ethical Sourcing Report will be integrated into the sustainability report.
 
Periodically, MMA Praxis completes an evaluation for continued investment in Wal-Mart. As part of MMA Praxis’ ongoing commitment to informed investment and shareholder activism in the company, this report highlights the progress the retailer has made in six areas of operation. Wal-Mart must show growth or be engaged in positive dialogue in five of these six areas to support MMA’s continued investment. Examples of

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topic areas include mitigation of hazardous materials, employee health care, and diversity. The most recent report was assembled in June 2007.
 
The connection between endowment investments and values
Nonprofit endowments, invested primarily in the stock market, provide charitable foundations with financial returns they use to pursue philanthropic missions. However, foundations don’t necessarily align their asset management with their charitable activities. In early January, the Los Angeles Times published an investigative report detailing perceived contradictions between the mission and the investments of the Bill and Melinda Gates Foundation. This series of articles ignited a heated debate about socially responsible investing (SRI) in the area of endowments that has continued for months.
 
In response, the SRI industry has stepped up its focus to demonstrate the opportunities available to foundations in aligning their mission and investments. The Social Investment Forum, the social investment industry’s trade association, has published a booklet on the subject titled: The Mission in the Marketplace: How Responsible Investing Can Strengthen the Fiduciary Oversight of Foundation Endowments and Enhance Philanthropic Missions. MMA and the MMA Praxis Mutual Funds have been active in lifting up this conversation, particularly among faith-based charities and institutions. We believe there doesn’t have to be a wall between the investments and mission of foundations. MMA’s Stewardship Investing Manager, Mark Regier, published an article proposing a “Third Way for The Gates Foundation” that is available on the MMA Praxis Web site (www.mmapraxis.com).
 
OneWorld community investing program launched
Finally, for those who want a way to invest individually in hope by creating economic opportunity throughout the United States and around the world, MMA, with Mennonite Economic Development Associates (MEDA), has launched the OneWorld Community Investment program. There are two components:
 
mPower—A program to end poverty through international microfinance opportunities that will help the working poor out of poverty through microfinancing. mPower directs investments worldwide.
 
nSpire—A way to invest in communities in the United States to make them stronger and healthier by financing affordable housing, small businesses, and nonprofit community facilities, thereby creating jobs and new avenues of hope.
 
The program provides investors the opportunity to purchase a Community Investment Note issued by Calvert Social Investment Foundation for as little as $1,000. For more information, contact your financial advisor or visit the Financial Services pages of www.MMA-online.org.
 
In Good Faith is a new blog from MMA designed to share some of the joys and trials, challenges and opportunities of the complex task we call stewardship investing. MMA has been involved in faith-based, socially responsible investing for more than 60 years. The conviction to connect our faith and values with our investment decisions has come naturally, but has changed greatly over time. Read the blog on the Financial Services pages of www.MMA-online.org.
 
Mark A. Regier
Stewardship Investing Services Manager

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1  Calvert Social Investment Foundation, a 501(c)(3) nonprofit, offers the Community Investment Note, a 1-10 year note earning up to 3 percent interest. The Community Investment Note is subject to certain risks, is not a mutual fund, is not FDIC or SIPC insured, and should not be confused with any Calvert Group, Ltd.-sponsored investment product. This is neither an offer to sell nor a solicitation of an offer to buy these securities; the offering is made only by prospectus, which should be read before investing.

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MMA Praxis Intermediate Income Fund
 
Semi-annual report to shareholders
Portfolio managers’ letter
 
Economic growth during the first half of the year was below the 3 percent underlying growth rate many economists believe to be consistent with a stable unemployment rate. The main drag on growth was the weak housing market.
 
Inflation was generally moderate with core inflation up roughly 0.2 percent. Headline inflation was worse due to higher energy and food processing investments. Combined with a view that economic growth would not slow much below the 2 - 2.5 percent range, the market began to incorporate the notion that the Federal Reserve would remain on hold for an extended period. As a result, longer-term rates rose and short-term rates fell.
 
The yield curve shifted from inverted to a slightly upward sloping shape. The 10-year Treasury note rose 33 basis points (a basis point is .01 percent) while three-month Treasury bills fell 20 basis points. With rates at those levels, the market largely was incorporating a view that the Fed would be on hold for the rest of 2007.
 
There were two periods of rising volatility during the first half. The first was in late February through mid-March and the second was in June. Both were periods that saw swap and credit spreads widen. Swap spreads are essentially the yield premium AA rated banks pay for loaning money to each other. After the first risk flare, credit spreads tightened again, but swap spreads only partially recovered. In June, swap spreads widened again while credit gradually gave ground. The main reason for the June widening was rising awareness of the problems in the subprime mortgage market.
 
These periods of rising volatility impacted our portfolio moderately. Since the Fund’s managers had overweighted asset-backed, commercial mortgages-backed, and residential mortgages-backed securities, which are vulnerable to widening swap spreads, there was a modest drag on the Fund’s performance. On the other hand, the Fund held no subprime mortgages and all of the securitized assets were either AAA rated or FNMA or FHLMC backed securities.
 
The positive factors for the Fund were the fact that the Fund was short in duration relative to the Lehman Aggregate during most of the half, which helped as rates rose. Another positive was the absolute yield spread premium that the Fund has versus the benchmark. Finally, our position in Euro-denominated securities paid off as the dollar weakened.
 
On balance, the positives were not enough to fully offset the Fund’s expenses. As a result, the Fund underperformed the benchmark by 41 basis points for Class A shares.
 
Outlook
For the remainder of 2007, we expect economic growth of 2 - 2.5 percent and core inflation to remain in the 2 - 2.3 percent range. The Fed is unlikely to make any changes in the Fed funds rate unless there is a more serious spillover from the housing market than we anticipate.
 
We believe the two risk flares we have had are the first of several that will gradually push credit spreads wider as companies add increasing amounts of leverage and investors become less tolerant of risk. Up to this point, investors have clearly been underpricing risk. With a large amount of capital available, private equity funds are a major risk for holders of corporate credit. We have and will continue to seek protection from leveraged buyouts and other leveraging events.
 
This kind of environment is a difficult one and one in which our value contribution may well be our willingness to avoid risk to protect the principal and income of our investors. The positive for fixed income investors is that interest rates are at the highest absolute levels since 2002, which will be reflected in better income flows from the Fund.
 
Delmar King
MMA Praxis Intermediate Income Fund Co-manager
 
Benjamin Bailey, CFA®
MMA Praxis Intermediate Income Fund Co-manager

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MMA Praxis Intermediate Income Fund
 
 
Average annual total returns as of 6/30/07
 
(GRAPH)
 
                                         
    Inception
 		               
   
Date
 
1 Year
 
3 Year
 
5 Year
 
10 Year
Class A
    5/12/99       5.27%       3.26%       3.89%       4.77%  
Class A*
    5/12/99       1.30%       1.95%       3.09%       4.37%  
                                         
Class B
    1/4/94       4.86%       2.80%       3.42%       4.45%  
Class B**
    1/4/94       0.86%       1.87%       3.25%       4.45%  
 
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
* Reflects maximum front-end sales charge of 3.75%.
 
** The Fund imposes a back-end sales charge (load) on Class B Shares if you sell your shares before a certain period of time has elasped. This is called a Contingent Deferred Sales Charge (“CDSC”). The CDSC declines over five years starting with year one and ending in year six as follows: 4%, 4%, 3%, 2%, 1%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 1/4/94. The B Share Contingent Deferred Sales Charge (CDSC) does not apply to performance over 5 years; therefore, the 10-year return does not reflect the CDSC.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.

8

Performance review   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Performance review (continued)
 
Growth of $10,000 investment 6/30/97 to 6/30/07
 
(CHART)
 
                                             
Class A - load     Class B - no load     LB Aggregate Bond Index  
Date     Balance     Date     Balance     Date     Balance  
 
  6/30/1997       9,625       6/30/1997       10,000       6/30/1997       10,000  
  9/30/1997       9,891       9/30/1997       10,276       9/30/1997       10,332  
  12/31/1997       10,137       12/31/1997       10,532       12/31/1997       10,636  
  3/31/1998       10,282       3/31/1998       10,682       3/31/1998       10,802  
  6/30/1998       10,492       6/30/1998       10,900       6/30/1998       11,054  
  9/30/1998       10,920       9/30/1998       11,345       9/30/1998       11,521  
  12/31/1998       10,876       12/31/1998       11,300       12/31/1998       11,560  
  3/31/1999       10,799       3/31/1999       11,220       3/31/1999       11,503  
  6/30/1999       10,692       6/30/1999       11,099       6/30/1999       11,402  
  9/30/1999       10,764       9/30/1999       11,164       9/30/1999       11,479  
  12/31/1999       10,700       12/31/1999       11,085       12/31/1999       11,465  
  3/31/2000       10,878       3/31/2000       11,259       3/31/2000       11,718  
  6/30/2000       10,941       6/30/2000       11,326       6/30/2000       11,922  
  9/30/2000       11,242       9/30/2000       11,615       9/30/2000       12,282  
  12/31/2000       11,561       12/31/2000       11,938       12/31/2000       12,798  
  3/31/2001       11,900       3/31/2001       12,277       3/31/2001       13,187  
  6/30/2001       11,959       6/30/2001       12,327       6/30/2001       13,261  
  9/30/2001       12,451       9/30/2001       12,823       9/30/2001       13,872  
  12/31/2001       12,322       12/31/2001       12,679       12/31/2001       13,879  
  3/31/2002       12,239       3/31/2002       12,583       3/31/2002       13,892  
  6/30/2002       12,673       6/30/2002       13,017       6/30/2002       14,405  
  9/30/2002       13,262       9/30/2002       13,611       9/30/2002       15,065  
  12/31/2002       13,433       12/31/2002       13,774       12/31/2002       15,302  
  3/31/2003       13,597       3/31/2003       13,929       3/31/2003       15,515  
  6/30/2003       13,914       6/30/2003       14,240       6/30/2003       15,903  
  9/30/2003       13,902       9/30/2003       14,196       9/30/2003       15,880  
  12/31/2003       13,927       12/31/2003       14,206       12/31/2003       15,930  
  3/31/2004       14,255       3/31/2004       14,526       3/31/2004       16,354  
  6/30/2004       13,929       6/30/2004       14,177       6/30/2004       15,954  
  9/30/2004       14,320       9/30/2004       14,560       9/30/2004       16,464  
  12/31/2004       14,451       12/31/2004       14,675       12/31/2004       16,621  
  3/31/2005       14,396       3/31/2005       14,603       3/31/2005       16,541  
  6/30/2005       14,760       6/30/2005       14,956       6/30/2005       17,039  
  9/30/2005       14,649       9/30/2005       14,822       9/30/2005       16,925  
  12/31/2005       14,714       12/31/2005       14,872       12/31/2005       17,025  
  3/31/2006       14,608       3/31/2006       14,746       3/31/2006       16,914  
  6/30/2006       14,567       6/30/2006       14,687       6/30/2006       16,901  
  9/30/2006       15,068       9/30/2006       15,192       9/30/2006       17,545  
  12/31/2006       15,247       12/31/2006       15,373       12/31/2006       17,762  
  3/31/2007       15,450       3/31/2007       15,577       3/31/2007       18,029  
  6/30/2007       15,335       6/30/2007       15,460       6/30/2007       17,935  
 
For performance purposes, the above graph has not been adjusted for CDSC charges.
 
This chart represents historical performance of a hypothetical investment of $10,000 in the Intermediate Income Fund from 6/30/97 to 6/30/07, and represents the reinvestment of dividends and capital gains in the Fund.
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.
 
* Reflects maximum front-end sales charge of 3.75%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 1/4/94.
 
1  The Lehman Brothers Aggregate Bond Index is an unmanaged index composed of the Lehman Brothers Government/Credit Index and the Lehman Brothers Mortgage-Backed Securities Index and includes Treasury issues, agency issues, corporate bond issues and mortgage-backed securities, and is intended to be generally representative of the bond market as a whole.
 
The above indices are for illustrative purposes only and the Lehman Brothers Aggregate Bond Index 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. An investor cannot invest directly in an index, although they can invest in its underlying securities.

9

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
June 30, 2007 (Unaudited)
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
ASSET BACKED SECURITIES — 2.3%
             
Honda Auto Receivables Owner Trust, 4.15%, 10/15/10
  $ 1,000,000   $ 988,024  
Massachusetts RRB Special Purpose Trust, 3.78%, 9/15/10
    625,448     620,031  
Morgan Stanley Auto Loan Trust, 3.33%, 10/15/11
    1,828,840     1,817,605  
PG&E Energy Recovery Funding LLC, 3.87%, 6/25/11
    942,405     928,568  
Residential Funding Mortgage Securities, 5.53%, 1/25/36
    1,000,000     995,349  
Wachovia Auto Loan Owner Trust, 5.10%, 7/20/11 (a)
    1,000,000     996,816  
               
TOTAL ASSET BACKED SECURITIES
          6,346,393  
               
COLLATERALIZED MORTGAGE OBLIGATIONS — 0.2%
             
JP Morgan Securities, Inc., 4.50%, 9/25/19
    671,878     655,066  
               
COMMERCIAL MORTGAGE BACKED SECURITIES — 8.3%
             
Bear Stearns Commercial Mortgage Securities, 5.20%, 12/1/38
    2,000,000     1,903,946  
Bear Stearns Commercial Mortgage Securities, 5.71%, 6/11/40
    1,000,000     988,442  
Bear Stearns Commercial Mortgage Securities, 5.12%, 2/11/41
    1,000,000     959,435  
Bear Stearns Commercial Mortgage Securities, 4.67%, 6/11/41
    1,000,000     930,233  
Bear Stearns Commercial Mortgage Securities, 5.54%, 9/11/41
    2,000,000     1,955,702  
Bear Stearns Commercial Mortgage Securities, 4.56%, 2/13/42
    1,000,000     979,201  
Bear Stearns Commercial Mortgage Securities, 5.13%, 10/12/42
    1,125,000     1,112,212  
Bear Stearns Commercial Mortgage Securities, 5.33%, 2/11/44
    2,000,000     1,921,367  
Chase Commercial Mortgage Securities Corp., 7.32%, 10/15/32
    1,000,000     1,043,326  
JP Morgan Chase Commercial Mortgage Securities, 5.40%, 5/15/45
    2,000,000     1,932,656  
JP Morgan Chase Commercial Mortgage Securities, 4.63%, 3/15/46
    1,000,000     979,881  
JP Morgan Trust, 4.90%, 10/15/42
    1,000,000     963,451  
Morgan Stanley Capital, 5.01%, 1/14/42
    1,000,000     974,406  
Morgan Stanley Capital, 4.83%, 6/12/47
    1,000,000     966,746  
Morgan Stanley Capital I, 5.98%, 8/12/41
    1,000,000     1,003,945  
Morgan Stanley Capital I, 5.51%, 11/12/49
    2,000,000     1,948,168  
PNC, 7.51%, 12/10/32
    2,000,000     2,085,017  
               
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES
          22,648,134  
               
CORPORATE BONDS — 19.2%
             
AGRICULTURAL SERVICES — 0.5%
             
Cargill, Inc., 7.50%, 9/1/26 (a)
    1,250,000     1,430,565  
               
ASSET MANAGEMENT — 0.5%
             
Legg Mason, Inc., 6.75%, 7/2/08
    1,300,000     1,312,899  
               
BANKING — 0.4%
             
Citigroup, Inc., 5.13%, 5/5/14 (b)
    1,000,000     967,448  
               
COMMERCIAL BANKS — 1.3%
             
Bank of America Corp., 7.75%, 8/15/15
    1,000,000     1,118,206  
State Street Corp., 7.35%, 6/15/26
    1,000,000     1,149,919  
Wells Fargo Co., 5.13%, 9/1/12 (b)
    1,250,000     1,227,130  
               
            3,495,255  
               
CONSTRUCTION — 0.2%
             
KB Home, 8.63%, 12/15/08
    500,000     510,000  
               

10

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
CORPORATE BONDS — 19.2%, continued
             
ELECTRIC - INTEGRATED — 1.0%
             
Midamerican Energy Co., 6.75%, 12/30/31 (b)
  $ 1,500,000   $ 1,606,565  
Puget Sound Energy, Inc., 6.74%, 6/15/18
    1,000,000     1,043,980  
               
            2,650,545  
               
ELECTRIC SERVICES — 0.7%
             
AEP Texas North Co., Series B, 5.50%, 3/1/13
    1,000,000     980,679  
FPL Energy Caithness Funding, 7.65%, 12/31/18 (a)
    742,893     791,323  
               
            1,772,002  
               
ELECTRONIC COMPONENTS - SEMICONDUCTORS — 0.2%
             
Applied Materials, Inc., 7.13%, 10/15/17
    500,000     534,512  
               
FINANCE - AUTO LOANS — 0.7%
             
Ford Motor Credit Co., 7.25%, 10/25/11 (b)
    1,000,000     962,432  
Ford Motor Credit Co., 8.00%, 12/15/16 (b)
    500,000     478,924  
General Motors Acceptance Corp., 6.75%, 12/1/14 (b)
    500,000     478,828  
               
            1,920,184  
               
FINANCIAL SERVICES — 2.1%
             
Countrywide Financial Corp., 5.80%, 6/7/12 (b)
    1,000,000     992,956  
Countrywide Financial Corp., 6.25%, 5/15/16 (b)
    500,000     491,051  
ERAC USA Finance Co., 5.90%, 11/15/15 (a)
    1,000,000     977,209  
General Electric Capital Corp., 6.88%, 11/15/10 (b)
    1,000,000     1,043,999  
General Electric Capital Corp., 6.75%, 3/15/32 (b)
    1,000,000     1,084,967  
SLM Corp., 4.00%, 1/15/09
    1,000,000     960,827  
               
            5,551,009  
               
FIRE, MARINE & CASUALTY INSURANCE — 0.4%
             
Berkley Corp., 5.13%, 9/30/10
    1,000,000     986,511  
               
FOOD PROCESSING — 0.3%
             
Dean Foods Co., 8.15%, 8/1/07 (b)
    750,000     750,000  
               
INSURANCE — 1.1%
             
American International Group, 6.25%, 5/1/36 (b)
    1,000,000     1,009,258  
Fidelity National Title, 7.30%, 8/15/11
    1,000,000     1,042,075  
Principal Life Global, 6.25%, 2/15/12 (a)
    1,000,000     1,028,623  
               
            3,079,956  
               
INTERNAL COMBUSTION ENGINES, N.E.C. — 0.4%
             
Briggs & Stratton Corp., 8.88%, 3/15/11
    1,000,000     1,063,871  
               
MEDICAL - BIOMEDICAL/GENETIC — 0.5%
             
Amgen, Inc., 4.00%, 11/18/09
    1,500,000     1,451,609  
               
NATURAL GAS PRODUCTION AND/OR DISTRIBUTION — 1.7%
             
Indiana Gas Co., 6.55%, 6/30/28
    250,000     253,407  
Keyspan Gas East, 7.88%, 2/1/10
    1,250,000     1,319,830  
National Fuel Gas Co., 6.30%, 5/27/08
    1,000,000     1,006,017  
Northern Natural Gas, 5.38%, 10/31/12 (a)
    1,000,000     988,331  
Southern Union Co., 8.25%, 11/15/29
    1,050,000     1,179,971  
               
            4,747,556  
               

11

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
CORPORATE BONDS — 19.2%, continued
             
NETWORKING — 0.4%
             
Cisco Systems, Inc., 5.25%, 2/22/11 (b)
  $ 1,000,000   $ 994,002  
               
OIL & GAS EXPLORATION, PRODUCTION & SERVICES — 1.9%
             
Burlington Resources, Inc., 7.38%, 3/1/29
    1,073,000     1,210,923  
Conoco, Inc., 6.95%, 4/15/29 (b)
    1,075,000     1,173,215  
Pemex Project, 7.38%, 12/15/14
    500,000     543,423  
Ras Laffan, 5.83%, 9/30/16 (a)
    1,000,000     983,110  
XTO Energy, Inc., 7.50%, 4/15/12 (b)
    1,000,000     1,075,100  
               
            4,985,771  
               
PUBLISHING - JOURNALS — 0.4%
             
Thomson Corp., 6.20%, 1/5/12 (b)
    1,200,000     1,221,145  
               
RESTAURANTS — 0.4%
             
YUM! Brands, Inc., 8.88%, 4/15/11 (b)
    1,000,000     1,100,220  
               
RETAIL - BUILDING PRODUCTS — 0.5%
             
Home Depot, Inc., 5.25%, 12/16/13 (b)
    500,000     482,294  
Home Depot, Inc., 5.40%, 3/1/16 (b)
    1,000,000     937,392  
               
            1,419,686  
               
RETAIL - DISCOUNT — 0.8%
             
Dollar General Corp., 8.63%, 6/15/10
    1,000,000     1,087,087  
Wal-Mart Stores, 7.55%, 2/15/30 (b)
    1,000,000     1,161,811  
               
            2,248,898  
               
SUPRANATIONAL BANK — 0.7%
             
Corporation Andina de Fomento, 5.20%, 5/21/13
    1,000,000     971,857  
IFFIM, 5.00%, 11/14/11 (a)
    1,000,000     983,254  
               
            1,955,111  
               
TELECOMMUNICATIONS — 0.4%
             
Embarq Corp., 6.74%, 6/1/13 (b)
    1,000,000     1,019,077  
               
TELEPHONE - INTEGRATED — 0.7%
             
Sprint Capital Corp., 7.63%, 1/30/11
    1,000,000     1,052,110  
Verizon Communications, 5.55%, 2/15/16 (b)
    1,000,000     974,263  
               
            2,026,373  
               
TRANSPORTATION SERVICES — 0.7%
             
Canadian National Railways, 4.40%, 3/15/13 (b)
    1,000,000     935,844  
Golden State Petroleum Transportation, 8.04%, 2/1/19
    1,000,000     1,053,610  
               
            1,989,454  
               
UTILITIES - NATURAL GAS — 0.4%
             
Michigan Consolidated Gas Co., 8.25%, 5/1/14
    1,000,000     1,131,789  
               
TOTAL CORPORATE BONDS
          52,315,448  
               
CORPORATE NOTES — 1.1%
             
COMMUNITY DEVELOPMENT — 1.1%
             
MMA Community Development Investment, Inc., 2.98%, 12/31/09, (c)+
    1,150,000     1,150,000  
MMA Community Development Investment, Inc., 4.47%, 12/31/09, (c)+
    1,925,000     1,925,000  
               
TOTAL CORPORATE NOTES
          3,075,000  
               

12

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
INTEREST ONLY BONDS — 0.3%
             
FREDDIE MAC — 0.2%
             
5.00%, 5/15/23
  $ 1,080,017   $ 22,429  
5.00%, 4/15/29
    2,000,000     394,883  
               
            417,312  
               
GOVERNMENT NATIONAL MORTGAGE ASSOC — 0.1%
             
1.03%, 4/16/27
    9,502,000     305,013  
               
TOTAL INTEREST ONLY BONDS
          722,325  
               
               
U.S. GOVERNMENT AGENCIES — 65.7%
             
FANNIE MAE — 28.8%
             
5.25%, 1/15/09
    3,000,000     3,000,234  
7.25%, 1/15/10
    4,450,000     4,664,017  
6.13%, 3/15/12
    2,700,000     2,792,221  
4.38%, 7/17/13
    5,250,000     4,970,148  
4.13%, 4/15/14
    900,000     836,627  
7.35%, 1/1/15
    322,826     347,011  
5.00%, 4/15/15
    2,250,000     2,195,474  
7.00%, 7/1/15
    17,782     18,488  
5.00%, 2/13/17
    1,000,000     967,419  
5.00%, 5/11/17
    2,750,000     2,651,105  
5.00%, 7/1/18
    852,341     826,864  
5.00%, 9/1/18
    1,155,548     1,121,008  
7.00%, 11/1/19
    126,799     131,976  
7.00%, 11/1/19
    70,385     73,258  
5.50%, 6/1/22
    2,461,372     2,425,461  
5.00%, 7/1/23
    1,590,557     1,518,546  
5.00%, 4/1/24
    1,573,593     1,500,823  
5.00%, 4/1/25
    1,960,036     1,866,820  
5.00%, 7/1/25
    1,778,435     1,693,856  
5.00%, 10/1/25
    2,119,286     2,018,496  
5.50%, 11/1/25
    1,648,088     1,608,382  
8.50%, 9/1/26
    332,045     355,718  
6.63%, 11/15/30
    2,500,000     2,817,378  
6.50%, 5/1/31
    132,141     133,395  
6.50%, 6/1/32
    312,908     318,450  
6.00%, 10/1/32
    276,176     274,895  
5.00%, 2/1/33
    1,475,293     1,389,674  
5.50%, 3/1/33
    744,331     721,334  
5.50%, 4/1/33
    571,845     554,056  
6.90%, 6/1/33
    295,241     298,995  
6.00%, 8/1/33
    479,591     474,456  
4.28%, 10/1/33
    1,180,753     1,185,351  
6.00%, 10/1/33
    588,754     582,450  
5.50%, 2/1/34
    1,062,498     1,024,769  
6.73%, 2/1/34
    601,686     609,132  
5.50%, 2/4/34
    1,179,826     1,137,930  

13

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
U.S. GOVERNMENT AGENCIES — 65.7%, continued
             
7.07%, 4/1/34
  $ 198,267   $ 201,309  
4.19%, 5/1/34
    838,165     834,451  
5.50%, 5/1/34
    1,180,203     1,143,489  
6.00%, 8/1/34
    2,013,452     1,991,892  
5.50%, 10/1/34
    1,326,021     1,283,834  
5.50%, 11/1/34
    1,350,738     1,302,773  
6.00%, 11/1/34
    2,402,946     2,377,216  
5.50%, 1/1/35
    2,031,975     1,967,328  
5.50%, 1/1/35
    1,404,811     1,354,926  
5.00%, 10/1/35
    2,602,352     2,438,378  
5.50%, 10/1/35
    3,168,992     3,064,199  
6.00%, 10/1/35
    1,528,997     1,512,625  
5.50%, 4/1/36
    2,649,723     2,562,102  
6.00%, 6/1/36
    1,789,994     1,770,827  
5.50%, 11/1/36
    2,877,727     2,775,539  
5.43%, 5/1/37
    2,483,605     2,464,687  
               
            78,151,792  
               
FEDERAL FARM CREDIT BANK — 0.7%
             
4.88%, 12/16/15
    2,000,000     1,925,660  
               
FEDERAL HOME LOAN BANK — 2.9%
             
4.13%, 8/13/10
    1,000,000     969,624  
6.63%, 11/15/10
    900,000     938,040  
3.88%, 6/14/13
    300,000     277,603  
4.50%, 9/16/13
    1,250,000     1,192,880  
4.75%, 12/16/16
    2,600,000     2,465,115  
5.50%, 7/15/36
    2,150,000     2,113,082  
               
            7,956,344  
               
FREDDIE MAC — 29.8%
             
9.00%, 6/1/08
    298     320  
6.75%, 1/15/09
    102,169     102,465  
5.75%, 3/15/09
    5,450,000     5,495,585  
3.75%, 7/15/09
    2,000,000     2,661,436  
4.13%, 7/12/10
    1,987,000     1,927,839  
4.00%, 9/1/10
    1,101,161     1,069,708  
6.88%, 9/15/10
    2,081,000     2,182,407  
5.00%, 7/15/14
    2,700,000     2,649,432  
6.00%, 9/1/17
    1,273,284     1,278,895  
5.00%, 10/1/17
    710,822     689,525  
5.50%, 11/1/17
    1,099,880     1,087,336  
6.00%, 2/1/18
    605,384     608,740  
5.00%, 5/1/18
    610,969     592,710  
4.50%, 6/1/18
    1,816,791     1,731,694  
5.00%, 9/1/18
    1,000,122     970,233  
5.00%, 9/1/18
    1,003,573     973,529  
5.00%, 10/1/18
    1,066,909     1,034,980  
5.00%, 11/1/18
    995,233     965,490  

14

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
U.S. GOVERNMENT AGENCIES — 65.7%, continued
             
5.00%, 4/1/19
  $ 1,782,544   $ 1,727,137  
5.50%, 12/15/20
    1,464,763     1,442,460  
5.00%, 12/1/21
    3,841,831     3,713,466  
5.00%, 12/10/21
    2,625,000     2,488,020  
5.50%, 4/1/22
    2,926,299     2,881,995  
6.00%, 4/1/27
    2,978,875     2,976,743  
7.00%, 2/1/30
    776,416     796,733  
7.50%, 7/1/30
    705,649     729,325  
5.00%, 12/15/30
    2,000,000     1,930,090  
6.50%, 2/1/31
    46,312     46,795  
7.00%, 3/1/31
    405,323     415,929  
6.75%, 3/15/31
    3,050,000     3,490,569  
5.00%, 4/15/31
    2,000,000     1,932,835  
6.50%, 8/1/31
    35,284     35,999  
6.50%, 2/1/32
    311,321     317,634  
5.00%, 2/15/32
    2,000,000     1,877,451  
6.00%, 10/1/32
    1,010,997     1,007,948  
5.50%, 8/1/33
    1,537,404     1,489,892  
5.50%, 11/1/33
    1,187,612     1,150,910  
5.50%, 12/1/33
    979,850     949,570  
2.93%, 5/1/34
    560,113     563,315  
3.01%, 5/1/34
    921,827     927,708  
6.00%, 11/1/34
    954,112     950,068  
5.00%, 7/1/35
    1,740,262     1,635,520  
5.00%, 7/1/35
    2,569,650     2,414,989  
5.50%, 3/1/36
    1,803,002     1,743,017  
5.50%, 6/1/36
    2,761,756     2,665,010  
5.50%, 6/1/36
    2,816,941     2,718,227  
6.00%, 6/1/36
    1,892,994     1,876,920  
5.50%, 12/1/36
    2,878,729     2,777,885  
5.50%, 12/1/36
    2,871,372     2,770,786  
5.73%, 1/1/37
    2,369,914     2,364,449  
               
            80,831,719  
               
GOVERNMENT NATIONAL MORTGAGE ASSOC. — 1.8%
             
7.50%, 9/15/07
    2,765     2,872  
6.75%, 4/15/16
    94,581     97,775  
7.00%, 12/20/30
    142,886     147,166  
6.50%, 4/20/31
    159,055     162,482  
6.50%, 7/20/31
    140,918     143,262  
6.50%, 10/20/31
    303,484     310,023  
7.00%, 10/20/31
    88,158     90,799  
7.00%, 3/20/32
    345,042     355,379  
6.50%, 5/20/32
    184,353     188,162  
6.50%, 1/20/34
    486,451     490,143  

15

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES OR
 		   
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
U.S. GOVERNMENT AGENCIES — 65.7%, continued
             
6.93%, 9/15/39
  $ 2,021,131   $ 2,049,105  
6.85%, 10/15/39
    717,233     729,234  
               
            4,766,402  
               
SMALL BUSINESS ADMINISTRATION — 0.4%
             
6.00%, 9/25/18
    91,979     92,482  
5.60%, 2/25/32
    995,348     992,507  
               
            1,084,989  
               
TENNESSEE VALLEY AUTHORITY — 1.3%
             
6.25%, 12/15/17
    2,000,000     2,120,346  
4.65%, 6/15/35
    1,750,000     1,513,626  
               
            3,633,972  
               
TOTAL U.S. GOVERNMENT AGENCIES
          178,350,878  
               
               
MUTUAL FUNDS — 0.9%
             
Pax World High Yield Fund
    286,591     2,467,552  
               
               
SHORT TERM INVESTMENTS — 1.1%
             
Northern Institutional Government Select Portfolio
    3,099,048     3,099,048  
               
               
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 4.0%
             
Northern Institutional Liquid Asset Portfolio
    10,841,714     10,841,714  
               
               
TOTAL INVESTMENTS (Cost $287,006,306) — 103.1%
        $ 280,521,558  
Liabilities in excess of other assets — (3.1%)
          (8,417,325 )
               
NET ASSETS — 100.0%
        $ 272,104,233  
               
 
 
(a) 144A security is restricted as to resale to institutional investors. These securities have been deemed liquid under guidelines established by the Board of Trustees. At June 30, 2007, these securities were valued at $8,179,231 or 3.01% of net assets.
(b) All or part of this security was on loan, as of June 30, 2007.
(c) Represents affiliated restricted security as to resale to investors and is not registered under the Securities Act of 1933. These securities have been deemed illiquid under guidelines established by the Board of Trustees. Acquisition date and current cost: MMA Community Development Investment, Inc., 2.98% - 12/01, $1,150,000 and MMA Community Development Investment, Inc., 4.47% - 12/01, $1,925,000. At June 30, 2007 these securities had an aggregate market value of $3,075,000, representing 1.1% of net assets.
+ Variable rate security. Rates presented are the rates in effect at June 30, 2007. Date presented reflects next rate change date.
 
See notes to financial statements.

16

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $273,089,592)
  $ 266,604,844  
Investments in affiliates, at value (cost $3,075,000)
    3,075,000  
Investments held as collateral for securities loaned, at value (cost $10,841,714)
    10,841,714  
         
Total Investments
    280,521,558  
         
Cash
    31,382  
Interest and dividends receivable
    2,662,055  
Receivable for capital shares sold
    230,275  
Prepaid expenses
    24,927  
         
Total Assets
    283,470,197  
         
LIABILITIES:
       
Distributions payable to shareholders
    214,566  
Payable for capital shares redeemed
    147,459  
Payable for securities loaned
    10,841,714  
Accrued expenses and other payables:
       
Investment advisory fees
    83,511  
Affiliates
    42,241  
Distribution fees
    20,099  
Trustees fees
    5,527  
Other
    10,847  
         
Total Liabilities
    11,365,964  
         
NET ASSETS:
       
Capital
    282,036,192  
Accumulated net investment loss
    (9,918 )
Accumulated net realized loss on investments, foreign currency transactions
    (3,437,293 )
Net unrealized depreciation on investments
    (6,484,748 )
         
Net Assets
  $ 272,104,233  
         
Net Assets
       
Class A
  $ 44,323,281  
Class B
    22,698,722  
Class I
    205,082,230  
         
Total
  $ 272,104,233  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    4,665,398  
Class B
    2,387,147  
Class I
    21,607,410  
         
Total
    28,659,955  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 9.50  
         
Class A — Maximum Sales Charge
    3.75%  
         
Class A — Maximum Offering Price Per Share
       
[(100%/(100%-Maximum Sales Charge) of
net asset value adjusted to the nearest cent]
  $ 9.87  
         
Class B — offering price per share**(A)
  $ 9.51  
         
Class I — offering price per share**(A)
  $ 9.49  
         
 
 
*  Includes securities on loan of $10,546,971.
** Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
 
See notes to financial statements.

17

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
For the six months ended June 30, 2007 (Unaudited)
 
         
INVESTMENT INCOME:
       
Interest
  $ 6,540,779  
Income from securities lending
    5,149  
Interest from affiliates
    61,187  
         
Total Investment Income
    6,607,115  
         
         
EXPENSES:
       
Investment advisory fees
    678,823  
Distribution fees — Class A
    53,612  
Distribution fees — Class B
    90,159  
Shareholder servicing fees — Class A
    53,612  
Shareholder servicing fees — Class B
    30,053  
Administration fees
    190,053  
Legal fees and expenses
    32,679  
Custodian fees
    7,151  
Trustees’ fee and expenses
    18,998  
Other expenses
    91,036  
         
Total expenses before reductions/reimbursements
    1,246,176  
Expenses waived by Investment Adviser
    (169,206 )
Expenses reduced by Distributor
    (83,666 )
         
Net Expenses
    993,304  
         
         
Net Investment Income
    5,613,811  
         
         
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
       
Net realized gain on investments, foreign currency transactions, and swap contracts
    309,658  
Change in unrealized appreciation/depreciation of investments
and foreign currency translations during the period
    (4,049,894 )
         
Net realized and unrealized loss on investments and foreign currency transactions
    (3,740,236 )
         
Net increase in net assets resulting from operations
  $ 1,873,575  
         
 
See notes to financial statements.

18

Statement of operations   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
                 
    Six Months
 		       
    Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006  
 
 
From Investment Activities:
               
Net investment income
  $ 5,613,811     $ 11,515,535  
Net realized gain (loss) on investments and foreign currency transactions
    309,658       (789,940 )
Change in unrealized appreciation/depreciation of investments
and foreign currency translations during the period
    (4,049,894 )     (1,145,512 )
                 
Net increase in net assets resulting from operations
    1,873,575       9,580,083  
                 
                 
Distributions to Class A Shareholders:
               
From net investment income
    (973,210 )     (4,529,498 )
                 
Distributions to Class B Shareholders:
               
From net investment income
    (483,463 )     (1,056,652 )
                 
Distributions to Class I Shareholders:
               
From net investment income
    (4,889,444 )     (6,127,725 )
                 
Change in net assets from distributions to shareholders
    (6,346,117 )     (11,713,875 )
                 
                 
Change in net assets from capital transactions
    3,179,352       1,020,852  
                 
                 
Change in net assets
    (1,293,190 )     (1,112,940 )
                 
Net Assets:
               
Beginning of period
    273,397,423       274,510,363  
                 
End of period
  $ 272,104,233     $ 273,397,423  
                 
                 
Accumulated (distributions in excess of) net investment income
  $ (9,918 )   $ 34,957  
                 
 
See notes to financial statements.

19

Statements of changes in net assets   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class A Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
 
Net Asset Value, Beginning of Period
  $ 9.66     $ 9.73     $ 9.95     $ 9.99     $ 10.05     $ 9.69  
                                                 
                                                 
Investment Activities:
                                               
Net investment income
    0.22       0.38       0.37       0.39       0.39       0.48  
Net realized and unrealized gains (losses) from investments, foreign currency transactions and swap contracts
    (0.16 )     (0.04 )     (0.19 )     (0.02 )     (0.03 )     0.37  
                                                 
Total from Investment Activities
    0.06       0.34       0.18       0.37       0.36       0.85  
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.22 )     (0.41 )     (0.40 )     (0.41 )     (0.42 )     (0.49 )
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 9.50     $ 9.66     $ 9.73     $ 9.95     $ 9.99     $ 10.05  
                                                 
Total Return (excludes sales charge)
    0.57%  (b)     3.63%       1.82%       3.77%       3.67%       9.02%  
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $  44,323     $  41,350     $ 239,583     $ 231,369     $  39,270     $  32,931  
Ratio of expenses to
average net assets
    0.88%  (c)     0.93%       0.94%       0.91%       0.85%       0.85%  
Ratio of net investment income
to average net assets
    3.99%  (c)     4.19%       3.77%       3.69%       3.85%       4.94%  
Ratio of expenses to average
net assets*
    1.25%  (c)     1.28%       1.23%       1.33%       1.58%       1.69%  
Portfolio Turnover (d)
    38.10%       34.19%       37.79%       30.29%       47.58%       58.16%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

20

Financial highlights   

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class B Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
Net Asset Value, Beginning of Period
  $ 9.66     $ 9.73     $ 9.94     $ 9.98     $ 10.05     $ 9.69  
                                                 
                                                 
Investment Activities:
                                               
Net investment income
    0.20       0.37       0.33       0.33       0.34       0.45  
Net realized and unrealized gains (losses) from investments
    (0.16 )     (0.08 )     (0.20 )     (0.01 )     (0.03 )     0.36  
                                                 
Total from Investment Activities
    0.04       0.29       0.13       0.32       0.31       0.81  
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.19 )     (0.36 )     (0.34 )     (0.36 )     (0.38 )     (0.45 )
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 9.51     $ 9.66     $ 9.73     $ 9.94     $ 9.98     $ 10.05  
                                                 
Total Return (excludes redemption charge)
    0.44%  (b)     3.10%       1.34%       3.30%       3.14%       8.64%  
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $  22,699     $  25,827     $  34,927     $  39,506     $  44,238     $  41,544  
Ratio of expenses to
average net assets
    1.33%  (c)     1.36%       1.39%       1.38%       1.30%       1.20%  
Ratio of net investment income
to average net assets
    3.54%  (c)     3.77%       3.31%       3.31%       3.41%       4.59%  
Ratio of expenses to average
net assets*
    1.75%  (c)     1.77%       1.79%       1.91%       2.07%       2.19%  
Portfolio Turnover(d)
    38.10%       34.19%       37.79%       30.29%       47.58%       58.16%  
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

21

Table of Contents

 
MMA Praxis Intermediate Income Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                 
    Class I Shares
 		 
   
 
    Six Months
 		       
    Ended
 		    Period Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006 (a)  
 
Net Asset Value, Beginning of Period
  $ 9.65     $ 9.47  
                 
                 
Investment Activities:
               
Net investment income
    0.23       0.29  
Net realized and unrealized gains (losses) from investments
    (0.16 )     0.18  
                 
Total from Investment Activities
    0.07       0.47  
                 
                 
Distributions:
               
Net investment income
    (0.23 )     (0.29 )
                 
Paid-in capital from redemption fees
    —       —  (b)
                 
Net Asset Value, End of Period
  $ 9.49     $ 9.65  
                 
Total Return (excludes redemption charge)
    0.70%  (c)     5.07%  (c)
                 
Ratios/Supplemental Data:
               
Net assets at end of period (000)
  $   205,082     $   206,221  
Ratio of expenses to average net assets
    0.63%  (d)     0.63%  (d)
Ratio of net investment income to average net assets
    4.24%  (d)     4.47%  (d)
Ratio of expenses to average net assets*
    0.75%  (d)     0.76%  (d)
Portfolio Turnover (e)
    38.10%       34.19%  
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

22

Table of Contents

 
 
Market environment
For the six-month period ended June 30, 2007, the stock market, as measured by the Standard & Poor 500 Index increased by 6.96 percent. The sectors within the S&P that turned in the strongest performance were energy, material, and telecommunication service companies. The sectors that turned in the weakest performance were banking, diversified financial, real estate, and consumer discretionary companies.
 
MMA Praxis Core Stock Fund performance overview
For the six-months ended June 30, 2007, the Class A shares of MMA Praxis Core Stock Fund increased by 4.92 percent, compared to its benchmark, the S&P, which increased by 6.96 percent.
 
The Fund’s two largest sector holdings were in diversified financial and insurance companies. The Fund’s holdings in these two sectors did a little better than break even, thereby detracting from performance relative to the S&P. One diversified financial company, Ameriprise Financial, was among the top contributors to performance. Two diversified financial companies, Citigroup and Moody’s, and one insurance company, American International Group, were among the top detractors from performance.
 
The Fund also made a significant investment in consumer discretionary companies. The Fund’s consumer discretionary companies out-performed the corresponding sector within the S&P, but did not match the performance of the S&P, thereby detracting from relative performance. Amazon.com was among the top contributors to performance, while Harley-Davidson and Bed Bath & Beyond were among the top detractors from performance.
 
The banking sector was among the worst performing sectors of the S&P. While the Fund’s banking companies out-performed the corresponding sector within the S&P, the Fund’s performance was harmed by a higher relative weighting in this poorly performing sector. Wachovia Corp. was among the top detractors from performance.
 
The energy sector was the top performing sector of the S&P and was also the most important contributor to the Fund’s performance over the six-month period. ConocoPhillips, Devon Energy, EOG Resources, and Transocean were all among the top contributors to performance.
 
The Fund’s material companies out-performed both the corresponding sector within the S&P and out-performed the Index itself. The Fund also benefited from a higher relative weighting in this sector. Martin Marietta Materials and Vulcan Materials were among the top contributors to performance. Sealed Air was among the top detractors from performance.
 
Individual companies contributing to performance included Tyco International (an industrial company) and Costco Wholesale (a consumer staples company). Individual companies detracting from performance included Procter & Gamble (a consumer staples company), Iron Mountain (an information technology company), and UnitedHealth Group (a health care company).
 
Over the past six-months there were no changes to the companies making up the Fund’s top ten holdings. As of June 30, 2007, the Fund’s top ten holdings represented approximately 42 percent of total net assets.
 
The Fund managers have identified a number of investment opportunities in foreign companies. The Fund ended the period with approximately 8 percent of its assets invested in foreign companies. As a group, the foreign companies owned by the Fund out-performed the S&P over the period.
 
Christopher C. Davis
Portfolio Manager and CEO of Davis Advisors
 
Kenneth C. Feinberg
Portfolio Manager

23

MMA Praxis Core Stock Fund   

Table of Contents

 
MMA Praxis Core Stock Fund
 
 
Average annual total returns as of 6/30/07
 
(GRAPH)
 
                                         
    Inception
 		               
   
Date
 
1 Year
 
3 Year
 
5 Year
 
10 Year
Class A
    5/12/99       16.32%       8.10%       6.96%       4.49%  
Class A*
    5/12/99       10.20%       6.18%       5.81%       3.93%  
                                         
Class B
    1/4/94       15.53%       7.39%       6.27%       4.01%  
Class B**
    1/4/94       11.53%       6.51%       6.11%       4.01%  
 
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
* Reflects maximum front-end sales charge of 5.25%.
 
** The Fund imposes a back-end sales charge (load) on Class B Shares if you sell your shares before a certain period of time has elasped. This is called a Contingent Deferred Sales Charge (“CDSC”). The CDSC declines over five years starting with year one and ending in year six as follows: 4%, 4%, 3%, 2%, 1%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 1/4/94. The B Share Contingent Deferred Sales Charge (CDSC) does not apply to performance over 5 years; therefore, the 10-year return does not reflect the CDSC.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.

24

Performance review   

Table of Contents

 
MMA Praxis Core Stock Fund
 
Performance review (continued)
 
Growth of $10,000 investment 6/30/97 to 6/30/07
 
(GRAPH)
 
                                             
Class A - load     Class B - no load     S&P 500  
Date     Balance     Date     Balance     Date     Balance  
 
  6/30/1997       9,475       6/30/1997       10,000       6/30/1997       10,000  
  9/30/1997       10,044       9/30/1997       10,601       9/30/1997       10,749  
  12/31/1997       10,533       12/31/1997       11,116       12/31/1997       11,058  
  3/31/1998       11,685       3/31/1998       12,332       3/31/1998       12,600  
  6/30/1998       11,116       6/30/1998       11,732       6/30/1998       13,016  
  9/30/1998       9,517       9/30/1998       10,045       9/30/1998       11,721  
  12/31/1998       11,160       12/31/1998       11,778       12/31/1998       14,218  
  3/31/1999       11,612       3/31/1999       12,255       3/31/1999       14,926  
  6/30/1999       12,969       6/30/1999       13,673       6/30/1999       15,978  
  9/30/1999       12,050       9/30/1999       12,696       9/30/1999       14,981  
  12/31/1999       12,575       12/31/1999       13,211       12/31/1999       17,210  
  3/31/2000       13,170       3/31/2000       13,812       3/31/2000       17,604  
  6/30/2000       12,886       6/30/2000       13,495       6/30/2000       17,136  
  9/30/2000       12,762       9/30/2000       13,338       9/30/2000       16,970  
  12/31/2000       12,522       12/31/2000       13,075       12/31/2000       15,643  
  3/31/2001       11,604       3/31/2001       12,105       3/31/2001       13,787  
  6/30/2001       11,938       6/30/2001       12,422       6/30/2001       14,594  
  9/30/2001       10,565       9/30/2001       10,980       9/30/2001       12,452  
  12/31/2001       11,535       12/31/2001       11,959       12/31/2001       13,782  
  3/31/2002       11,733       3/31/2002       12,150       3/31/2002       13,820  
  6/30/2002       10,497       6/30/2002       10,862       6/30/2002       11,968  
  9/30/2002       8,901       9/30/2002       9,185       9/30/2002       9,900  
  12/31/2002       9,442       12/31/2002       9,738       12/31/2002       10,736  
  3/31/2003       9,056       3/31/2003       9,321       3/31/2003       10,398  
  6/30/2003       10,020       6/30/2003       10,301       6/30/2003       11,998  
  9/30/2003       10,200       9/30/2003       10,463       9/30/2003       12,316  
  12/31/2003       11,213       12/31/2003       11,488       12/31/2003       13,815  
  3/31/2004       11,471       3/31/2004       11,732       3/31/2004       14,049  
  6/30/2004       11,634       6/30/2004       11,886       6/30/2004       14,291  
  9/30/2004       11,256       9/30/2004       11,478       9/30/2004       14,023  
  12/31/2004       12,071       12/31/2004       12,288       12/31/2004       15,318  
  3/31/2005       11,761       3/31/2005       11,952       3/31/2005       14,989  
  6/30/2005       11,878       6/30/2005       12,052       6/30/2005       15,194  
  9/30/2005       12,078       9/30/2005       12,234       9/30/2005       15,741  
  12/31/2005       12,498       12/31/2005       12,643       12/31/2005       16,070  
  3/31/2006       12,714       3/31/2006       12,834       3/31/2006       16,746  
  6/30/2006       12,637       6/30/2006       12,743       6/30/2006       16,505  
  9/30/2006       13,070       9/30/2006 A     13,180       9/30/2006       17,440  
  12/31/2006       14,010       12/31/2006 A     14,128       12/31/2006       18,608  
  3/31/2007       13,882       3/31/2007       13,999       3/31/2007       18,727  
  6/30/2007       14,700       6/30/2007       14,822       6/30/2007       19,903  
 
For performance purposes, the above graph has not been adjusted for CDSC charges.
 
This chart represents historical performance of a hypothetical investment of $10,000 in the Core Stock Fund from 6/30/97 to 6/30/07, and represents the reinvestment of dividends and capital gains in the Fund.
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.
 
* Reflects maximum front-end sales charge of 5.25%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 1/4/94.
 
1  The S&P 500 Composite Stock Price Index (the “S&P 500R Index”) is a widely recognized, unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange.
 
The above 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. An investor cannot invest directly in an index, although they can invest in its underlying securities.

25

Table of Contents

 
MMA Praxis Core Stock Fund
 
June 30, 2007 (Unaudited)
                 
    SHARES   VALUE
 
COMMON STOCKS — 97.9%
               
ADVERTISING SERVICES — 0.3%
               
WPP Group plc ADR (b)
    13,900     $ 1,039,025  
                 
AUTOMOTIVE — 0.5%
               
CarMax, Inc. (a)
    74,400       1,897,200  
                 
BANKS — 10.3%
               
Commerce Bancorp, Inc. (b)
    65,700       2,430,243  
HSBC Holdings plc
    595,805       10,945,920  
Mellon Financial Corp. 
    83,400       3,669,600  
State Street Corp. 
    10,600       725,040  
Wachovia Corp. 
    154,574       7,921,918  
Wells Fargo & Co. 
    292,000       10,269,640  
                 
              35,962,361  
                 
BROADCASTING/CABLE — 3.9%
               
Comcast Corp., Class A (a)(b)
    440,450       12,314,982  
Liberty Media Corp — Capital, Series A (a)
    11,735       1,380,975  
                 
              13,695,957  
                 
BROKERAGE SERVICES — 4.4%
               
JPMorgan Chase & Co. 
    313,000       15,164,850  
                 
BUILDING MATERIALS & CONSTRUCTION — 1.0%
               
Vulcan Materials Co. 
    28,900       3,310,206  
                 
BUSINESS SERVICES — 1.3%
               
Iron Mountain, Inc. (a)(b)
    171,300       4,476,069  
                 
COMPUTER EQUIPMENT & SERVICES — 0.6%
               
Google, Inc., Class A (a)
    1,560       816,473  
Nokia Oyj ADR (b)
    42,200       1,186,242  
                 
              2,002,715  
                 
COMPUTERS & PERIPHERALS — 2.1%
               
Dell, Inc. (a)
    164,600       4,699,330  
Hewlett-Packard Co. 
    59,200       2,641,504  
                 
              7,340,834  
                 
CONSTRUCTION — 1.4%
               
Martin Marietta Materials, Inc. (b)
    29,400       4,763,388  
                 
              5,448,178  
                 
CONSUMER FINANCIAL SERVICES — 6.2%
               
American Express Co. 
    289,100       17,687,138  
H&R Block, Inc. 
    164,650       3,847,871  
                 
              21,535,009  
                 
CONSUMER GOODS & SERVICES — 1.1%
               
Procter & Gamble Co. 
    62,500       3,824,375  
                 
CONTAINERS — PAPER & PLASTIC — 2.3%
               
Sealed Air Corp. (b)
    252,200       7,823,244  
                 
COSMETICS & TOILETRIES — 0.5%
               
Avon Products, Inc. 
    43,900       1,613,325  
                 

26

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis Core Stock Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
                 
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
               
E-COMMERCE — 1.7%
               
Amazon.com, Inc. (a)(b)
    44,300     $ 3,030,563  
Expedia, Inc. (a)(b)
    25,300       741,037  
IAC/InterActiveCorp. (a)(b)
    22,200       768,342  
Liberty Media Corp — Interactive, Class A (a)
    54,675       1,220,893  
                 
              5,760,835  
                 
FINANCIAL SERVICES — 5.9%
               
Ameriprise Financial, Inc. 
    78,800       5,009,316  
Citigroup, Inc. 
    151,500       7,770,435  
E*TRADE Financial Corp. (a)
    22,500       497,025  
Moody’s Corp. (b)
    70,800       4,403,760  
Morgan Stanley
    33,400       2,801,592  
                 
              20,482,128  
                 
FOOD PRODUCTS — 0.6%
               
The Hershey Co. 
    41,400       2,095,668  
                 
HOME FURNISHINGS — 0.3%
               
Hunter Douglas N.V. 
    11,700       1,108,946  
                 
INSURANCE — 15.3%
               
Ambac Financial Group, Inc. 
    16,700       1,456,073  
American International Group, Inc. 
    236,100       16,534,083  
Aon Corp. 
    66,800       2,846,348  
Berkshire Hathaway, Inc., Class A (a)
    117       12,808,575  
Chubb Corp. 
    17,800       963,692  
Markel Corp. (a)
    700       339,192  
Millea Holdings, Inc. 
    96,700       3,973,381  
NIPPONKOA Insurance Co. 
    62,200       560,656  
Principal Financial Group, Inc. 
    21,100       1,229,919  
Sun Life Financial, Inc. (b)
    14,000       668,500  
The Progressive Corp. 
    319,000       7,633,670  
Transatlantic Holdings, Inc. (b)
    54,900       3,905,037  
                 
              52,919,126  
                 
MANUFACTURING — 4.9%
               
Tyco International Ltd. (b)
    505,400       17,077,466  
                 
METAL MINING — 0.3%
               
Rio Tinto plc
    15,100       1,160,279  
                 
MINERALS — 0.3%
               
BHP Billiton plc
    42,300       1,181,393  
                 
MULTIMEDIA — 1.8%
               
News Corp., Class A
    293,600       6,227,256  
                 
NEWSPAPERS — 0.2%
               
Gannett Co., Inc. 
    15,800       868,210  
                 
OIL & GAS EXPLORATION, PRODUCTION & SERVICES — 11.0%
               
ConocoPhillips
    228,050       17,901,925  
Devon Energy Corp. 
    117,000       9,159,930  
EOG Resources, Inc. 
    100,100       7,313,306  
Transocean, Inc. (a)
    37,300       3,953,054  
                 
              38,328,215  
                 

27

Table of Contents

 
MMA Praxis Core Stock Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
                 
    SHARES OR
 		   
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
COMMON STOCKS — 97.9%, continued
               
PHARMACEUTICALS — 2.6%
               
Cardinal Health, Inc. 
    50,600     $ 3,574,384  
Express Scripts, Inc. (a)
    38,500       1,925,385  
UnitedHealth Group, Inc. 
    71,900       3,676,966  
                 
              9,176,735  
                 
RECREATIONAL PRODUCTS — 1.8%
               
Harley-Davidson, Inc. 
    104,000       6,199,440  
                 
RETAIL — 9.2%
               
Bed Bath & Beyond, Inc. (a)
    64,100       2,306,959  
Costco Wholesale Corp. 
    260,700       15,256,164  
CVS Caremark Corp. 
    139,022       5,067,352  
Lowe’s Cos., Inc. 
    59,600       1,829,124  
Sears Holdings Corp. (a)
    5,700       966,150  
Wal-Mart Stores, Inc. 
    133,300       6,413,063  
                 
              31,838,812  
                 
SCHOOLS & EDUCATIONAL SERVICES — 0.2%
               
Apollo Group, Inc., Class A (a)(b)
    12,600       736,218  
                 
SOFTWARE & COMPUTER SERVICES — 2.3%
               
Microsoft Corp. 
    273,500       8,060,045  
                 
TELECOMMUNICATIONS — 2.3%
               
SK Telecom Co. Ltd. ADR (b)
    72,800       1,991,080  
Sprint Nextel Corp. 
    213,700       4,425,727  
Virgin Media, Inc. (b)
    67,958       1,656,136  
                 
              8,072,943  
                 
TRANSPORTATION SERVICES — 1.3%
               
Asciano Group (a)(b)
    41,900       360,128  
Kuehne & Nagel International AG
    19,000       1,754,564  
Toll Holdings Ltd. (b)
    55,700       684,790  
United Parcel Service, Inc., Class B
    24,600       1,795,800  
                 
              4,595,282  
                 
TOTAL COMMON STOCKS
            340,337,555  
                 
COMMERCIAL PAPER — 1.0%
               
Chesham Financial, 5.4%, 7/2/07
    3,571,000       3,570,464  
                 
                 
SHORT TERM INVESTMENTS — 0.1%
               
Northern Institutional Government Select Portfolio
    179,141       179,141  
                 
                 
CORPORATE NOTES — 1.2%
               
COMMUNITY DEVELOPMENT — 1.2%
               
MMA Community Development Investment, Inc., 2.98%, 12/31/09, (c)+
    1,695,000       1,695,000  
MMA Community Development Investment, Inc., 4.47%, 12/31/09, (c)+
    2,570,000       2,570,000  
                 
TOTAL CORPORATE NOTES
            4,265,000  
                 

28

Table of Contents

 
MMA Praxis Core Stock Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
                 
    SHARES   VALUE
 
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 10.3%
               
Krediet Bank
    6,423     $ 6,423  
Northern Institutional Liquid Asset Portfolio
    34,323,877       34,323,877  
U.S. Treasury Inflation Indexed Bonds, 2.00%, 1/15/26
    1,453,843       1,384,710  
                 
TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING
            35,715,010  
                 
                 
TOTAL INVESTMENTS (Cost $330,146,932) — 110.5%
            384,067,170  
Liabilities in excess of other assets — (10.5%)
            (36,372,398 )
                 
NET ASSETS — 100.0%
          $ 347,694,772  
                 
 
 
 (a) Non-income producing securities.
 (b) All or part of this security was on loan, as of June 30, 2007.
 (c) Represents affiliated restricted security as to resale to investors and is not registered under the Securities Act of 1933. These securities have been deemed illiquid under guidelines established by the Board of Trustees. Acquisition date and current cost: MMA Community Development Investment, Inc., 2.98% - 12/01, $1,695,000 and MMA Community Development Investment, Inc., 4.47% - 12/01, $2,570,000. At June 30, 2007, these securities had an aggregate market value of $4,265,000 representing 1.2% of net assets.
+ Variable rate security. Rates presented are the rates in effect at June 30, 2007. Date presented reflects next rate change date.
ADR – American Depositary Receipt
plc – Public Liability Company
 
           
        UNREALIZED
FUTURES CONTRACTS PURCHASED  
CONTRACTS
 
DEPRECIATION
 
S&P 500 Index Futures Contract, expiring September, 2007
         
(underlying face amount at value $4,167,350)
    11   $91,300
 
See notes to financial statements.

29

Table of Contents

 
MMA Praxis Core Stock Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $290,166,922)
  $ 344,087,160  
Investments in affiliates, at value (cost $4,265,000)
    4,265,000  
Investments held as collateral for securities loaned, at value (cost $35,715,010)
    35,715,010  
         
Total Investments
    384,067,170  
         
Cash
    38,822  
Cash held as collateral for futures contracts
    154,000  
Interest and dividends receivable
    215,604  
Receivable for capital shares sold
    23,886  
Receivable for investments sold
    1,655,644  
Prepaid expenses
    28,247  
         
Total Assets
    386,183,373  
         
LIABILITIES:
       
Distributions payable to shareholders
    142,605  
Payable for capital shares redeemed
    1,322,560  
Payable for securities loaned
    35,715,010  
Payable for investments purchased
    882,229  
Payable for variation margin on futures contracts
    4,950  
Accrued expenses and other payables:
       
Investment advisory fees
    214,767  
Affiliates
    49,019  
Distribution fees
    45,953  
Trustees fees
    13,205  
Other
    98,303  
         
Total Liabilities
    38,488,601  
         
NET ASSETS:
       
Capital
    293,552,313  
Accumulated net investment income
    83,207  
Accumulated net realized gain on investments and futures contracts
    230,314  
Net unrealized appreciation on investments
    53,920,238  
Unrealized depreciation of futures contracts
    (91,300 )
         
Net Assets
  $ 347,694,772  
         
Net Assets
       
Class A
  $ 107,213,822  
Class B
    64,833,046  
Class I
    175,647,904  
         
Total
  $ 347,694,772  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    6,650,594  
Class B
    4,206,410  
Class I
    10,854,810  
         
Total
    21,711,814  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 16.12  
         
Class A — Maximum Sales Charge
    5.25%  
         
Class A — Maximum Offering Price Per Share
       
[(100%/(100%-Maximum Sales Charge) of
net asset value adjusted to the nearest cent]
  $ 17.01  
         
Class B — offering price per share**(A)
  $ 15.41  
         
Class I — offering price per share **(A)
  $ 16.18  
         
 
*  Includes securities on loan of $35,354,793.
**  Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
 
See notes to financial statements.

30

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis Core Stock Fund
 
For the six months ended June 30, 2007 (Unaudited)
 
         
INVESTMENT INCOME:
       
Dividends
  $ 3,053,495  
Foreign tax withholding
    (44,950 )
Interest
    85,064  
Income from securities lending
    11,406  
Interest from affiliates
    79,975  
         
Total Investment Income
    3,184,990  
         
         
EXPENSES:
       
Investment advisory fees
    1,270,067  
Distribution fees — Class A
    126,868  
Distribution fees — Class B
    255,545  
Reimbursement of Fund expenses paid by Adviser
    148,501  
Administration fees
    249,375  
Shareholder servicing fees — Class A
    126,868  
Shareholder servicing fees — Class B
    85,181  
Legal fees and expenses
    38,911  
Custodian fees
    12,018  
Trustees’ fee and expenses
    25,480  
Other expenses
    173,756  
         
Total expenses before reductions/reimbursements
    2,512,570  
Expenses reduced by Distributor
    (160,941 )
         
Net Expenses
    2,351,629  
         
         
Net Investment Income
    833,361  
         
         
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
       
Net realized gain on investments and futures contracts
    3,403,414  
Change in unrealized appreciation/depreciation of investments during the period
    12,769,502  
Change in unrealized appreciation/depreciation of futures contracts during the period
    (98,863 )
         
Net realized and unrealized gain on investments and futures contracts
    16,074,053  
         
Net increase in net assets resulting from operations
  $ 16,907,414  
         
 
See notes to financial statements.

31

Statement of operations   

Table of Contents

 
MMA Praxis Core Stock Fund
 
                 
    Six Months
 		       
    Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006  
 
 
From Investment Activities:
               
Net investment income
  $ 833,361     $ 313,670  
Net realized gain on investments and futures contracts
    3,403,414       19,440,865  
Change in unrealized appreciation/depreciation of investments and futures contracts during the period
    12,670,639       17,859,139  
                 
Net increase in net assets resulting from operations
    16,907,414       37,613,674  
                 
                 
Distributions to Class A Shareholders:
               
From net investment income
    (247,276 )     —  
From net realized gain on investment
    —       (4,511,679 )
                 
                 
Distributions to Class B Shareholders:
               
From net realized gain on investment
    —       (3,639,759 )
                 
                 
Distributions to Class I Shareholders:
               
From net investment income
    (688,521 )     —  
From net realized gain on investment
    —       (8,171,169 )
                 
Change in net assets from distributions to shareholders
    (935,797 )     (16,322,607 )
                 
                 
Change in net assets from capital transactions
    (10,999,202 )     8,975,997  
                 
                 
Change in net assets
    4,972,415       30,267,064  
                 
Net Assets:
               
Beginning of Period
    342,722,357       312,455,293  
                 
End of Period
  $ 347,694,772     $ 342,722,357  
                 
                 
Accumulated net investment income
  $ 83,207     $ 102,601  
                 
 
See notes to financial statements.

32

Statements of changes in net assets   

Table of Contents

 
MMA Praxis Core Stock Fund
 
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class A Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
 
Net Asset Value, Beginning of Period
  $ 15.40     $ 14.42     $ 13.99     $ 13.06     $ 11.00     $ 13.44  
                                                 
                                                 
Investment Activities:
                                               
Net investment income
    0.03       0.04       0.07       0.08       0.05       0.04  
Net realized and unrealized gains (losses) from investments
    0.73       1.70       0.42       0.92       2.01       (2.48 )
                                                 
Total from Investment Activities
    0.76       1.74       0.49       1.00       2.06       (2.44 )
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.04 )     —       (0.06 )     (0.07 )     —  (a)     —  
Net realized gain
    —       (0.76 )     —       —       —       —  
Tax return of capital
    —       —       —       —       —  (a)     —  
                                                 
Total Distributions
    (0.04 )     (0.76 )     (0.06 )     (0.07 )     —       —  
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 16.12     $ 15.40     $ 14.42     $ 13.99     $ 13.06     $ 11.00  
                                                 
Total Return (excludes sales charge)
    4.92%  (b)     12.10%       3.52%       7.65%       18.77%       (18.15% )
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $ 107,214     $ 95,185     $ 208,640     $ 202,474     $ 41,244     $ 25,314  
Ratio of expenses to average net assets
    1.46%  (c)     1.49%       1.34%       1.33%       1.25%       1.20%  
Ratio of net investment income to average net assets
    0.40%  (c)     0.19%       0.50%       1.04%       0.45%       0.35%  
Ratio of expenses to average net assets*
    1.53%  (c)     1.74%       1.60%       1.65%       1.86%       1.94%  
Portfolio Turnover (d)
    7.97%       72.41%       32.66%       9.99%       7.68%       10.20%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

33

Financial highlights   

Table of Contents

 
MMA Praxis Core Stock Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
 
                                                 
    Class B Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		                               
    June 30,
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2006     2003     2002  
 
Net Asset Value, Beginning of Period
  $ 14.74     $ 13.92     $ 13.53     $ 12.67     $ 10.74     $ 13.19  
                                                 
                                                 
Investment Activities:
                                               
Net investment income (loss)
    (0.03 )     (0.09 )     (0.02 )     0.01       (0.02 )     (0.02 )
Net realized and unrealized gains
(losses) from investments
    0.70       1.67       0.41       0.87       1.95       (2.43 )
                                                 
Total from Investment Activities
    0.67       1.58       0.39       0.88       1.93       (2.45 )
                                                 
                                                 
Distributions:
                                               
Net investment income
    —       —       —       (0.02 )     —       —  
Net realized gain
    —       (0.76 )     —       —       —       —  
                                                 
Total distributions
    —       (0.76 )     —       (0.02 )     —       —  
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 15.41     $ 14.74     $ 13.92     $ 13.53     $ 12.67     $ 10.74  
                                                 
Total Return (excludes redemption charge)
    4.55%  (b)     11.38%       2.88%       6.96%       17.97%       (18.57% )
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $ 64,833     $ 73,973     $ 103,815     $ 121,817     $ 127,348     $ 111,598  
Ratio of expenses to
average net assets
    2.10%  (c)     2.13%       1.99%       1.98%       1.90%       1.75%  
Ratio of net investment income (loss)
to average net assets
    (0.24% ) (c)     (0.52% )     (0.14% )     0.50%       (0.21% )     (0.20% )
Ratio of expenses to average
net assets*
    2.20%  (c)     2.23%       2.09%       2.22%       2.33%       2.44%  
Portfolio Turnover (d)
    7.97%       72.41%       32.66%       9.99%       7.68%       10.20%  
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

34

Table of Contents

 
MMA Praxis Core Stock Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                 
    Class I Shares
 		 
   
 
    Six Months
 		       
    Ended
 		    Period Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006 (a)  
 
Net Asset Value, Beginning of Period
  $ 15.45     $ 14.76  
                 
                 
Investment Activities:
               
Net investment income
    0.11       0.04  
Net realized and unrealized gain from investments
    0.68       1.41  
                 
Total from Investment Activities
    0.79       1.45  
                 
                 
Distributions:
               
Net investment income
    (0.06 )     —  
Net realized gain
    —       (0.76 )
                 
Total distributions
    (0.06 )     (0.76 )
                 
Net Asset Value, End of Period
  $ 16.18     $ 15.45  
                 
Total Return (excludes redemption charge)
    5.13%  (b)     9.86%  (b)
                 
Ratios/Supplemental Data:
               
Net assets at end of period (000)
  $ 175,648     $ 173,565  
Ratio of expenses to average net assets
    1.03%  (c)     1.02%  (c)
Ratio of net investment income to average net assets
    0.82%  (c)     0.43%  (c)
Ratio of expenses to average net assets*
    1.03%  (c)     1.03%  (c)
Portfolio Turnover (d)
    7.97%       72.41%  
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
(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.

35

Table of Contents

Portfolio manager’s letter
 
Domestic equities surged higher during the first half of the year on a wave of acquisitions, stock buybacks, and leveraged buyouts. Strong demand for stocks in the face of a dwindling supply of public equity shares has combined with reasonably strong profits to impel stock prices higher.
 
As has been the case for several years, small- and mid-sized company stocks continued to lead larger company stocks, but in a reversal from the trend, the period saw growth style investing leading the value style. We have been expecting this reversal for some time now, but it remains to be seen whether returns will favor the growth style over a longer period, or if this is just a blip. Since June 30, 2000, the Standard & Poor/Citigroup Value Index opened a yawning gap of 78.6 percent over its growth counterpart, the Standard & Poor/Citigroup Growth Index. The growth indexes had a similar lead over value indexes at the height of the late 1990s stock market rally only to see their lead erased over a period of a few years. We don’t have a view on when or how much the growth style will catch up over the coming years, but we are firm believers in reversion to the mean which we believe will bring the returns to these investment styles more into balance over time.
 
The Praxis Value Index Fund (A shares) returned 4.57 percent during the first half of the year, which trailed the 6.75 percent return of the MSCI Prime Market Value Index (“MSCI Index”) benchmark. As we have described in past letters, the target index of the Fund is a custom value index that takes into account MMA’s unique stewardship investing screens. The Fund virtually matched the performance of this custom benchmark, meaning that the difference between the Fund and the MSCI Index was due almost solely to MMA’s screens. During the period, energy related stocks—particularly the so-called “super-major” oil companies—whose weight is underrepresented in the Fund relative to the MSCI Index, outperformed and consequently detracted from Fund performance. The Fund also has an overweight position in financial stocks that, as a group, lagged the overall market’s performance during the quarter. Again, this positioning—a byproduct of the screens—hindered Fund performance. We expect that depending upon the economic environment, screens will both aid and hinder the Fund’s performance over time.
 
Chad Horning, CFA®
MMA Praxis Value Index Fund Co-manager

36

MMA Praxis Value Index Fund   

Table of Contents

 
MMA Praxis Value Index Fund
 
 
Average annual total returns as of 6/30/07
 
(GRAPH)
 
                                         
    Inception
 		              Since
   
Date
 
1 Year
 
3 Year
 
5 Year
 
Inception
Class A
    5/1/01       19.26%       13.84%       11.69%       4.89%  
Class A*
    5/1/01       12.96%       11.80%       10.50%       3.98%  
                                         
Class B
    5/1/01       18.61%       13.28%       11.12%       4.36%  
Class B**
    5/1/01       14.61%       12.50%       10.99%       4.36%  
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
* Reflects maximum front-end sales charge of 5.25%.
 
** The Fund imposes a back-end sales charge (load) on Class B Shares if you sell your shares before a certain period of time has elapsed. This is called a Contingent Deferred Sales Charge (“CDSC”). The CDSC declines over five years starting with year one and ending in year six as follows: 4%, 4%, 3%, 2%, 1%.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.

37

Performance review   

Table of Contents

 
MMA Praxis Value Index Fund
 
Performance review (continued)
 
Growth of $10,000 investment 6/30/97 to 6/30/07
 
(CHART)
 
                                             
Class A - load     MSCI Prime Market Value Index     Class B - CDSC load  
Date     Balance     Date     Balance     Date     Balance  
 
  5/1/2001       9,479       5/1/2001       10,000       5/1/2001       10,000  
  6/30/2001       9,261       6/30/2001       9,903       6/30/2001       9,376  
  9/30/2001       7,933       9/30/2001       9,118       9/30/2001       8,012  
  12/31/2001       8,368       12/31/2001       9,718       12/31/2001       8,448  
  3/31/2002       8,340       3/31/2002       10,105       3/31/2002       8,409  
  6/30/2002       7,321       6/30/2002       9,116       6/30/2002       7,370  
  9/30/2002       5,849       9/30/2002       7,461       9/30/2002       5,877  
  12/31/2002       6,460       12/31/2002       8,071       12/31/2002       6,486  
  3/31/2003       6,123       3/31/2003       7,637       3/31/2003       6,138  
  6/30/2003       7,253       6/30/2003       8,977       6/30/2003       7,342  
  9/30/2003       7,407       9/30/2003       9,186       9/30/2003       7,489  
  12/31/2003       8,422       12/31/2003       10,469       12/31/2003       8,509  
  3/31/2004       8,607       3/31/2004       10,698       3/31/2004       8,686  
  6/30/2004       8,625       6/30/2004       10,866       6/30/2004       8,771  
  9/30/2004       8,743       9/30/2004       11,006       9/30/2004       8,881  
  12/31/2004       9,522       12/31/2004       12,085       12/31/2004       9,654  
  3/31/2005       9,305       3/31/2005       12,044       3/31/2005       9,434  
  6/30/2005       9,530       6/30/2005       12,254       6/30/2005       9,745  
  9/30/2005       9,878       9/30/2005       12,757       9/30/2005       10,091  
  12/31/2005       10,104       12/31/2005       12,964       12/31/2005       10,299  
  3/31/2006       10,645       3/31/2006       13,656       3/31/2006       10,847  
  6/30/2006       10,668       6/30/2006       13,790       6/30/2006       10,966  
  9/30/2006       11,334       9/30/2006       14,710       9/30/2006       11,620  
  12/31/2006       12,167       12/31/2006       15,863       12/31/2006       12,464  
  3/31/2007       12,220       3/31/2007       16,014       3/31/2007       12,507  
  6/30/2007       12,723       6/30/2007       16,935       6/30/2007       13,007  
 
This chart represents historical performance of a hypothetical investment of $10,000 in the Value Index Fund from 5/1/01 to 6/30/07, and represents the reinvestment of dividends and capital gains in the Fund.
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.
 
* Reflects maximum front-end sales charge of 5.25%.
 
1  The MSCI US Prime Market Value Index represents the value companies of the MSCI US Prime Market 750 Index. (The MSCI US Prime Market 750 Index represents the universe of large and medium capitalization companies in the US equity market. This index targets for inclusion 750 companies and represents, as of October 29, 2004, approximately 86% of the capitalization of the US equity market.) The MSCI US Prime Market Value Index is a subset of the MSCI US Prime Market 750 Index.
 
The above 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. An investor cannot invest directly in an index, although they can invest in its underlying securities.

38

Table of Contents

 
MMA Praxis Value Index Fund
 
June 30, 2007 (Unaudited)
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%
             
AIRLINES — 0.2%
             
UAL Corp. (a)(b)
    3,936   $ 159,762  
               
APPAREL MANUFACTURERS — 0.2%
             
Jones Apparel Group, Inc. 
    2,085     58,901  
V.F. Corp. 
    1,430     130,960  
               
            189,861  
               
AUTOMOTIVE — 0.5%
             
BorgWarner, Inc. (b)
    1,300     111,852  
Ford Motor Co. (b)
    25,694     242,037  
               
            353,889  
               
BANKS — 15.1%
             
Bank of America Corp. 
    66,193     3,236,176  
Bank of New York Co., Inc. 
    11,220     464,957  
BB&T Corp. 
    7,080     288,014  
Comerica, Inc. 
    2,970     176,626  
Commerce Bancorp, Inc. (b)
    2,605     96,359  
Compass Bancshares, Inc. 
    1,640     113,127  
Fifth Third Bancorp. (b)
    6,800     270,436  
First Horizon National Corp. (b)
    4,340     169,260  
Huntington Bancshares, Inc. (b)
    15,830     359,974  
KeyCorp
    5,490     188,472  
M & T Bank Corp. 
    1,220     130,418  
Marshall & Ilsley Corp. 
    2,970     141,461  
Mellon Financial Corp. 
    4,610     202,840  
National City Corp. 
    10,920     363,854  
Northern Trust Corp. 
    2,561     164,519  
Popular, Inc. (b)
    6,040     97,063  
Regions Financial Corp. 
    10,985     363,604  
Sovereign Bancorp, Inc. (b)
    6,368     134,620  
SunTrust Banks, Inc. 
    5,110     438,131  
U.S. Bancorp
    25,712     847,210  
UnionBanCal Corp. 
    2,010     119,997  
Wachovia Corp. 
    28,416     1,456,320  
Wells Fargo & Co. 
    46,667     1,641,278  
Zions Bancorp
    1,420     109,212  
               
            11,573,928  
               
BEVERAGES — 2.2%
             
Coca-Cola Company
    26,760     1,399,816  
Coca-Cola Enterprises, Inc. 
    5,760     138,240  
Pepsi Bottling Group, Inc. 
    4,080     137,414  
               
            1,675,470  
               
BROADCAST SERVICES & PROGRAMMING — 0.9%
             
CBS Corp., Class B
    9,850     328,202  
Clear Channel Communications, Inc. 
    6,230     235,619  
Liberty Media Corp. (a)
    934     109,913  
               
            673,734  
               

39

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
BROKERAGE SERVICES — 7.8%
             
A.G. Edwards, Inc. 
    1,098   $ 92,836  
Bear Stearns Cos., Inc. 
    1,793     251,020  
Goldman Sachs Group, Inc. 
    2,028     439,569  
JPMorgan Chase & Co. 
    51,625     2,501,231  
Lehman Brothers Holdings, Inc. 
    6,710     500,029  
Merrill Lynch & Co. 
    12,479     1,042,995  
Morgan Stanley
    14,416     1,209,214  
               
            6,036,894  
               
BUSINESS SERVICES — 0.3%
             
Fidelity National Information Services, Inc. (b)
    2,151     116,757  
Manpower, Inc. 
    1,160     106,998  
               
            223,755  
               
CHEMICALS - GENERAL — 1.0%
             
Air Products & Chemicals, Inc. 
    2,710     217,803  
International Flavors & Fragrances, Inc. 
    1,451     75,655  
Lyondell Chemical Co. 
    3,730     138,458  
PPG Industries, Inc. 
    2,120     161,353  
Rohm and Haas Company
    3,400     185,912  
               
            779,181  
               
COMMERCIAL SERVICES — 0.1%
             
The Servicemaster Co. (b)
    4,156     64,252  
               
COMPUTER SERVICES — 0.2%
             
Electronic Data Systems Corp. 
    5,880     163,052  
               
COMPUTER STORAGE DEVICES — 0.2%
             
Seagate Technology (b)
    8,420     183,303  
               
COMPUTERS & PERIPHERALS — 1.9%
             
Hewlett-Packard Co. 
    15,010     669,746  
International Business Machines Corp. 
    7,802     821,161  
               
            1,490,907  
               
CONGLOMERATES — 0.5%
             
Emerson Electric Co. 
    8,520     398,736  
               
CONSTRUCTION SERVICES — 0.3%
             
D.R. Horton, Inc. 
    4,110     81,913  
Lennar Corp. 
    1,990     72,754  
Toll Brothers, Inc. (a)(b)
    2,057     51,384  
               
            206,051  
               
CONSUMER FINANCIAL SERVICES — 0.4%
             
H&R Block, Inc. 
    4,390     102,594  
SLM Corp. 
    2,984     171,819  
               
            274,413  
               
CONSUMER PRODUCTS — 0.1%
             
Bausch & Lomb, Inc. (b)
    1,305     90,619  
               
CONTAINERS - PAPER & PLASTIC — 0.1%
             
Avery Dennison Corp. (b)
    1,380     91,742  
               

40

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
COSMETICS & TOILETRIES — 0.6%
             
Kimberly-Clark Corp. 
    7,271   $ 486,357  
               
DISTRIBUTION — 0.3%
             
Genuine Parts Co. 
    2,980     147,808  
W.W. Grainger, Inc. 
    1,080     100,494  
               
            248,302  
               
E-COMMERCE — 0.1%
             
IAC/InterActiveCorp (a)
    2,920     101,061  
               
ELECTRIC SERVICES — 1.1%
             
Alliant Energy Corp. 
    2,010     78,089  
CenterPoint Energy, Inc. (b)
    4,463     77,656  
Consolidated Edison, Inc. (b)
    4,020     181,382  
FPL Group, Inc. 
    5,580     316,610  
NiSource, Inc. 
    4,520     93,609  
Pepco Holdings, Inc. (b)
    4,130     116,466  
               
            863,812  
               
ELECTRIC UTILITIES — 0.3%
             
Northeast Utilities
    2,157     61,173  
Pinnacle West Capital Corp. (b)
    1,417     56,467  
Spectra Energy Corp. 
    5,555     144,208  
               
            261,848  
               
ELECTRONIC & ELECTRICAL — GENERAL — 0.3%
             
Arrow Electronics, Inc. (a)
    2,680     102,992  
LSI Logic Corp. (a)(b)
    15,558     116,841  
               
            219,833  
               
ENERGY — 0.8%
             
Valero Energy Corp. 
    8,724     644,355  
               
FINANCIAL SERVICES — 10.8%
             
Ambac Financial Group, Inc. 
    1,680     146,479  
American Capital Strategies Ltd. (b)
    2,480     105,450  
Ameriprise Financial, Inc. 
    3,226     205,077  
Capital One Financial Corp. (b)
    6,636     520,528  
CIT Group, Inc. 
    3,120     171,070  
Citigroup, Inc. 
    72,383     3,712,523  
Countrywide Financial Corp. 
    8,880     322,788  
Federal Home Loan Mortgage Corp. 
    9,857     598,320  
Federal National Mortgage Association
    14,442     943,495  
Janus Capital Group, Inc. (b)
    5,467     152,201  
MBIA, Inc. (b)
    2,670     166,127  
MGIC Investment Corp. (b)
    1,650     93,819  
PNC Financial Services Group, Inc. 
    5,600     400,848  
Synovus Financial Corp. 
    3,071     94,280  
The Student Loan Corp. (b)
    364     74,220  
Washington Mutual, Inc. (b)
    14,218     606,256  
               
            8,313,481  
               

41

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
FIRE, MARINE, AND CASUALTY INSURANCE — 0.4%
             
Axis Capital Holdings Ltd. 
    2,576   $ 104,714  
Transatlantic Holdings, Inc. 
    1,150     81,800  
White Mountains Insurance Group Ltd. (b)
    170     103,023  
               
            289,537  
               
FOOD DISTRIBUTORS & WHOLESALERS — 0.5%
             
Dean Foods Co. (a)(b)
    1,979     63,071  
Sara Lee Corp. 
    9,490     165,126  
SUPERVALU, Inc. 
    3,784     175,275  
               
            403,472  
               
FOOD PROCESSING — 1.0%
             
Bunge Ltd. (b)
    1,750     147,875  
ConAgra Foods, Inc. 
    5,730     153,908  
H.J. Heinz Co. 
    3,630     172,316  
Hormel Foods Corp. 
    5,240     195,714  
McCormick & Co. 
    1,799     68,686  
               
            738,499  
               
FOOD PRODUCTS — 1.3%
             
General Mills, Inc. 
    4,143     242,034  
Kraft Foods, Inc. 
    21,351     752,623  
               
            994,657  
               
FOOD STORES — 0.5%
             
Kroger Co. 
    7,560     212,663  
Safeway, Inc. 
    4,910     167,087  
               
            379,750  
               
FORESTRY — 0.2%
             
Plum Creek Timber Co., Inc. (b)
    3,030     126,230  
               
FURNITURE & HOME FURNISHINGS — 0.1%
             
Leggett & Platt, Inc. 
    4,000     88,200  
               
HEALTH CARE SERVICES — 0.3%
             
AmerisourceBergen Corp. 
    3,380     167,208  
Triad Hospitals, Inc. (a)(b)
    1,810     97,306  
               
            264,514  
               
HOTELS & MOTELS — 0.1%
             
Wyndham Worldwide Corp. (a)(b)
    3,004     108,925  
               
HOUSEHOLD PRODUCTS — 0.1%
             
Newell Rubbermaid, Inc. 
    3,410     100,356  
               
INDUSTRIAL GOODS & SERVICES — 0.2%
             
Masco Corp. 
    5,370     152,884  
               
INSURANCE — 9.3%
             
Allstate Corp. 
    8,810     541,903  
American International Group, Inc. 
    32,702     2,290,120  
Aon Corp. 
    4,110     175,127  
Assurant, Inc. 
    1,710     100,753  

42

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
Chubb Corp. 
    5,790   $ 313,471  
CIGNA Corp. 
    2,622     136,921  
Cincinnati Financial Corp. 
    4,150     180,110  
Everest Re Group
    1,400     152,096  
First American Corp. (b)
    1,690     83,655  
Genworth Financial, Inc. 
    6,830     234,952  
Hartford Financial Services Group, Inc. 
    4,610     454,131  
Lincoln National Corp. 
    4,115     291,959  
Marsh & McLennan Cos., Inc. 
    7,300     225,424  
MetLife, Inc. 
    11,372     733,267  
Prudential Financial, Inc. 
    5,040     490,039  
Radian Group, Inc. 
    1,551     83,754  
RenaissanceRe Holdings Ltd. 
    1,347     83,501  
SAFECO Corp. 
    1,930     120,162  
The PMI Group, Inc. 
    2,670     119,269  
Torchmark Corp. (b)
    1,550     103,850  
UnumProvident Corp. 
    5,050     131,856  
Willis Group Holdings, Ltd. 
    3,490     153,769  
               
            7,200,089  
               
INSURANCE PROPERTY-CASUALTY — 1.7%
             
ACE Ltd. 
    5,040     315,101  
Fidelity National Title, Class A (a)
    3,334     79,016  
Markel Corp. (a)
    189     91,582  
The Travelers Companies, Inc. 
    10,210     546,234  
XL Capital Ltd. 
    3,040     256,242  
               
            1,288,175  
               
IRON & STEEL — 0.2%
             
United States Steel Corp. 
    1,730     188,138  
               
MACHINERY — 0.6%
             
Deere & Co. 
    1,584     191,252  
Ingersoll-Rand Co. Ltd. 
    4,150     227,503  
Stanley Works
    1,320     80,124  
               
            498,879  
               
MANUFACTURING — 1.9%
             
Cooper Industries Ltd., Class A (b)
    2,340     133,591  
Domtar Corp. (a)(b)
    10,904     121,689  
MoHawk Industries, Inc. (a)(b)
    721     72,670  
SPX Corp. 
    1,110     97,469  
Tyco International Ltd. 
    28,460     961,662  
Whirlpool Corp. (b)
    1,084     120,541  
               
            1,507,622  
               
MEDICAL - BIOMEDICAL/GENETIC — 0.2%
             
Biogen Idec, Inc. (a)(b)
    2,323     124,281  
               
MEDICAL - HOSPITALS — 0.1%
             
Health Management Associates, Inc., Class A (b)
    7,602     86,359  
               

43

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
MEDICAL EQUIPMENT & SUPPLIES — 0.4%
             
Boston Scientific Corp. (a)
    21,142   $ 324,318  
               
MEDICAL SUPPLIES — 0.1%
             
Hillenbrand Industry, Inc. (b)
    1,580     102,700  
               
MULTIMEDIA — 0.6%
             
Time Warner, Inc. 
    23,264     489,475  
               
NEWSPAPERS — 0.5%
             
E.W. Scripps Co. (b)
    2,000     91,380  
Gannett Co., Inc. 
    2,860     157,157  
The Washington Post Company, Class B (b)
    102     79,161  
Tribune Co. 
    2,490     73,206  
               
            400,904  
               
OFFICE EQUIPMENT & SERVICES — 0.7%
             
Pitney Bowes, Inc. 
    5,890     275,770  
Xerox Corp. (a)
    13,430     248,186  
               
            523,956  
               
OIL - INTEGRATED — 2.6%
             
ConocoPhillips
    23,020     1,807,070  
Hess Corp. 
    3,430     202,233  
               
            2,009,303  
               
OIL & GAS EXPLORATION, PRODUCTION & SERVICES — 2.1%
             
Anadarko Petroleum Corp. 
    6,220     323,378  
Apache Corp. 
    4,416     360,301  
Devon Energy Corp. 
    6,149     481,406  
Nabors Industries Ltd. (a)(b)
    2,252     75,172  
ONEOK, Inc. (b)
    1,601     80,706  
Patterson-UTI Energy, Inc. 
    3,004     78,735  
Pioneer Natural Resources
    2,200     107,162  
Rowan Cos., Inc. (b)
    2,027     83,066  
               
            1,589,926  
               
OIL & GAS OPERATIONS — 0.6%
             
Chesapeake Energy Corp. (b)
    5,330     184,417  
Cimarex Energy Co. 
    1,839     72,475  
Newfield Exploration Co. (a)(b)
    1,550     70,603  
Noble Energy, Inc. 
    2,223     138,693  
               
            466,188  
               
OIL & GAS TRANSMISSION — 1.2%
             
El Paso Corp. (b)
    8,480     146,110  
KeySpan Corp. 
    13,789     578,862  
Sempra Energy
    3,650     216,190  
               
            941,162  
               

44

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
PAPER PRODUCTS — 1.0%
             
International Paper Co. 
    5,800   $ 226,490  
MeadWestvaco Corp. 
    3,520     124,326  
Smurfit-Stone Container Corp. (a)(b)
    8,366     111,351  
Temple-Inland, Inc. 
    1,600     98,448  
Weyerhaeuser Co. 
    3,090     243,895  
               
            804,510  
               
PHARMACEUTICALS — 6.7%
             
Abbott Laboratories
    16,690     893,750  
Bristol-Myers Squibb Co. 
    29,820     941,119  
Eli Lilly and Co. 
    13,590     759,409  
Hospira, Inc. (a)
    1,788     69,804  
Merck & Co., Inc. 
    32,339     1,610,481  
Omnicare, Inc. (b)
    1,814     65,413  
Wyeth
    14,390     825,123  
               
            5,165,099  
               
PRINTING — COMMERCIAL — 0.2%
             
R.R. Donnelley & Sons Co. 
    3,070     133,576  
               
PUBLISHING — 0.2%
             
Idearc, Inc. 
    3,456     122,100  
               
RAILROADS — 0.3%
             
Norfolk Southern Corp. 
    4,530     238,142  
               
RAW MATERIALS — 0.2%
             
Vulcan Materials Co. (b)
    1,250     143,175  
               
REAL ESTATE INVESTMENT TRUST — 1.4%
             
Archstone-Smith Trust
    3,030     179,103  
Developers Diversified Realty Corp. (b)
    1,650     86,972  
Equity Residential
    4,020     183,433  
Health Care Property Investors, Inc. (b)
    2,795     80,859  
iStar Financial, Inc. 
    3,075     136,315  
Kimco Realty Corp. 
    3,260     124,108  
Public Storage, Inc. 
    1,340     102,939  
Regency Centers Corp. 
    1,134     79,947  
Vornado Realty Trust
    1,324     145,428  
               
            1,119,104  
               
REAL ESTATE OPERATIONS — 1.9%
             
AMB Property Corp. 
    1,260     67,057  
Apartment Investment & Management Co. (b)
    1,630     82,185  
AvalonBay Communities, Inc. 
    1,090     129,579  
Boston Properties, Inc. (b)
    1,630     166,472  
Duke Realty Corp. 
    1,920     68,486  
Forest City Enterprises, Inc., Class A (b)
    1,004     61,726  

45

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
Host Hotels & Resorts, Inc. 
    9,372   $ 216,681  
Macerich Co. 
    1,250     103,025  
Simon Property Group, Inc. 
    2,510     233,530  
SL Green Realty Corp. (b)
    945     117,076  
UDR, Inc. (b)
    2,300     60,490  
Ventas, Inc. 
    1,703     61,734  
Weingarten Realty Investors (b)
    1,584     65,102  
               
            1,433,143  
               
RECREATIONAL ACTIVITIES — 0.6%
             
Carnival Corp. 
    7,490     365,287  
Royal Caribbean Cruises Ltd. (b)
    2,260     97,135  
               
            462,422  
               
RECREATIONAL PRODUCTS — 0.3%
             
Hasbro, Inc. 
    2,701     84,838  
Mattel, Inc. 
    5,820     147,188  
               
            232,026  
               
RESIDENTIAL BUILDING CONSTRUCTION — 0.3%
             
Centex Corp. 
    1,610     64,561  
KB Home (b)
    1,605     63,189  
Pulte Homes, Inc. 
    3,470     77,901  
               
            205,651  
               
RESTAURANTS — 0.9%
             
McDonald’s Corp. 
    12,752     647,291  
Wendy’s International, Inc. 
    2,142     78,719  
               
            726,010  
               
RETAIL — 0.8%
             
Dollar General Corp. 
    4,905     107,518  
Limited Brands, Inc. 
    6,530     179,249  
Sherwin-Williams Co. 
    1,770     117,652  
The Gap, Inc. 
    9,860     188,325  
               
            592,744  
               
SAVINGS & LOANS — 0.2%
             
Hudson City Bancorp, Inc. 
    7,260     88,717  
People’s United Financial, Inc. 
    4,914     87,125  
               
            175,842  
               
SEMICONDUCTORS — 0.4%
             
Intersil Corp. 
    3,100     97,526  
Maxim Integrated Products, Inc. 
    2,952     98,626  
Microchip Technology, Inc. 
    2,746     101,712  
               
            297,864  
               
SOFTWARE & SERVICES — 0.1%
             
Cadence Design Systems, Inc. (a)(b)
    4,610     101,236  
               

46

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 99.1%, continued
             
TELECOMMUNICATIONS — 9.4%
             
ALLTEL Corp. 
    4,900   $ 330,995  
AT&T, Inc. 
    93,569     3,883,115  
CenturyTel, Inc. 
    1,880     92,214  
Sprint Nextel Corp. 
    41,219     853,645  
Telephone & Data Systems, Inc. 
    1,172     73,332  
Verizon Communications, Inc. 
    43,343     1,784,431  
Virgin Media, Inc. 
    3,830     93,337  
Windstream Corp. (b)
    8,712     128,589  
               
            7,239,658  
               
TELECOMMUNICATIONS-SERVICES & EQUIPMENT — 0.3%
             
Embarq Corp. 
    2,220     140,681  
Tellabs, Inc. (a)
    9,597     103,264  
               
            243,945  
               
WASTE MANAGEMENT — 0.1%
             
Republic Services, Inc. 
    3,180     97,435  
               
TOTAL COMMON STOCKS
          76,690,779  
               
SHORT TERM INVESTMENTS — 0.2%
             
Northern Institutional Government Select Portfolio
    146,524     146,524  
               
CORPORATE NOTES — 0.8%
             
COMMUNITY DEVELOPMENT — 0.8%
             
MMA Community Development Investment, Inc., 2.98%, 12/31/09, (c)+
    175,000     175,000  
MMA Community Development Investment, Inc., 4.47%, 12/31/09, (c)+
    435,000     435,000  
               
TOTAL CORPORATE NOTES
          610,000  
               
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 10.3%
             
Anz Bank Government
    1,808     1,808  
Banco Santander Central Hispano
    78,764     78,764  
Bank of New York City Letter of Credit
    18     18  
Krediet Bank
    5,717     5,717  
Lloyds Letter of Credit
    12,655     12,655  
LOCC HSBC Letter of Credit
    3,616     3,616  
Monte Dei Paschi Di Siena
    4,520     4,520  
National Australia
    9,039     9,039  
Northern Institutional Liquid Asset Portfolio
    6,656,413     6,656,413  
Paribas Letter of Credit
    10,847     10,847  
Royal Bank Canada Letter of Credit
    5,424     5,424  
San Paolo IMI Bank
    6,328     6,328  
Standard Chartered Bank Letter of Credit
    2,712     2,712  
U.S. Treasury Bond, 3.38%, 10/15/09
    100     97  
U.S. Treasury Bond, 7.50%, 11/15/16
    12     14  
U.S. Treasury Bond, 8.88%, 8/15/17
    25     33  

47

Table of Contents

 
MMA Praxis Value Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 10.3%, continued
U.S. Treasury Bond, 8.75%, 8/15/20
    708   $ 969  
U.S. Treasury Bond, 5.25%, 2/15/29
    2,202     2,260  
U.S. Treasury Inflation Indexed Bonds, 1.88%, 7/15/13
    13,556     14,757  
U.S. Treasury Inflation Indexed Bonds, 1.88%, 7/15/15
    164,134     166,240  
U.S. Treasury Inflation Indexed Bonds, 2.38%, 1/15/25
    199,678     212,819  
U.S. Treasury Inflation Indexed Bonds, 2.00%, 1/15/26
    23,058     21,961  
U.S. Treasury Inflation Indexed Bonds, 2.38%, 1/15/27
    63,995     63,658  
U.S. Treasury Inflation Indexed Bonds, 3.63%, 4/15/28
    41,965     62,513  
U.S. Treasury Inflation Indexed Bonds, 3.88%, 4/15/29
    88     134  
U.S. Treasury Inflation Indexed Notes, 3.88%, 1/15/09
    124     161  
U.S. Treasury Inflation Indexed Notes, .88%, 4/15/10
    179,639     186,412  
U.S. Treasury Inflation Indexed Notes, 2.38% , 4/15/11
    246,885     255,440  
U.S. Treasury Inflation Indexed Notes, 2.00% , 4/15/12
    28,901     28,863  
U.S. Treasury Inflation Indexed Notes, 2.00%, 1/15/14
    12,215     13,250  
U.S. Treasury Inflation Indexed Notes, 1.63%, 1/15/15
    413     418  
U.S. Treasury Inflation Indexed Notes, 2.00%, 1/15/16
    27,869     27,806  
U.S. Treasury Inflation Indexed Notes, 2.50%, 7/15/16
    137,141     140,332  
Westpac Letter of Credit
    1,790     1,790  
               
TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING
          7,997,788  
               
               
TOTAL INVESTMENTS (Cost $70,871,203) — 110.4%
          85,445,091  
Liabilities in excess of other assets — (10.4%)
          (8,069,984 )
               
NET ASSETS — 100.0%
        $ 77,375,107  
               
 
 
(a) Non-income producing securities.
(b) All or part of this security was on loan, as of June 30, 2007.
(c) Represents affiliated restricted security as to resale to investors and is not registered under the Securities Act of 1933. These securities have been deemed illiquid under guidelines established by the Board of Trustees. Acquisition date and current cost: MMA Community Development Investment, Inc., 2.98% - 7/02, $175,000 and MMA Community Development Investment, Inc., 4.47% - 12/01, $435,000. At June 30, 2007 these securities had an aggregate market value of $610,000, representing 0.8% of net assets.
+ Variable rate security. Rates presented are the rates in effect at June 30, 2007. Date presented reflects next rate change date.
 
             
        UNREALIZED
FUTURES CONTRACTS PURCHASED  
CONTRACTS
 
DEPRECIATION
 
S&P 500 Index Futures Contract, expiring September, 2007
(underlying face amount at value $378,850)
    1   $ 8,300
 
See notes to financial statements.

48

Table of Contents

 
MMA Praxis Value Index Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $62,263,415)
  $ 76,837,303  
Investments in affiliates, at value (cost $610,000)
    610,000  
Investments held as collateral for securities loaned, at value (cost $7,997,788)
    7,997,788  
         
Total Investments
    85,445,091  
         
Cash
    5,346  
Cash held as collateral for futures contracts
    14,000  
Interest and dividends receivable
    109,233  
Receivable for capital shares sold
    211,498  
Prepaid expenses
    20,851  
         
Total Assets
    85,806,019  
         
LIABILITIES:
       
Distributions payable to shareholders
    178,475  
Payable for capital shares redeemed
    33,696  
Payable for investments purchased
    137,348  
Payable for securities loaned
    7,997,788  
Payable for variation margin on futures contracts
    450  
Accrued expenses and other payables:
       
Investment advisory fees
    19,255  
Affiliates
    2,288  
Distribution fees
    14,126  
Trustees fees
    9,052  
Other
    38,434  
         
Total Liabilities
    8,430,912  
         
NET ASSETS:
       
Capital
    61,148,598  
Accumulated net investment income
    5,422  
Accumulated net realized gain on investments and futures contracts
    1,655,499  
Net unrealized appreciation on investments
    14,573,888  
Unrealized depreciation of futures contracts
    (8,300 )
         
Net Assets
  $ 77,375,107  
         
Net Assets
       
Class A
  $ 30,269,349  
Class B
    14,589,910  
Class I
    32,515,848  
         
Total
  $ 77,375,107  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    2,549,041  
Class B
    1,230,193  
Class I
    2,750,498  
         
Total
    6,529,732  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 11.87  
         
Class A — Maximum Sales Charge
    5.25%  
         
Class A — Maximum Offering Price Per Share [(100%/(100%-Maximum Sales Charge) of net asset value adjusted to the nearest cent]
  $ 12.53  
         
Class B — offering price per share**(A)
  $ 11.86  
         
Class I — offering price per share**(A)
  $ 11.82  
         
 
 
*  Includes securities on loan, $7,827,836.
** Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
 
See notes to financial statements.

49

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis Value Index Fund
 
For the six months ended June 30, 2007 (Unaudited)
 
         
INVESTMENT INCOME:
       
Dividends
  $ 869,218  
Interest
    8,347  
Income from securities lending
    3,859  
Interest from affiliates
    11,509  
         
Total Investment Income
    892,933  
         
         
EXPENSES:
       
Investment advisory fees
    105,608  
Distribution fees — Class A
    33,425  
Distribution fees — Class B
    52,961  
Shareholder servicing fees — Class A
    33,425  
Shareholder servicing fees — Class B
    17,654  
Administration fees
    49,240  
Legal fees and expenses
    27,711  
Reimbursement of Fund expenses paid by Adviser
    7,293  
Trustees’ fee and expenses
    21,750  
Custodian fees
    416  
Other expenses
    56,707  
         
Total expenses before reductions/reimbursements
    406,190  
Expenses reduced by Distributor
    (47,548 )
         
Net Expenses
    358,642  
         
         
Net Investment Income
    534,291  
         
         
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
       
Net realized gain on security transactions and futures contracts
    1,821,767  
Change in unrealized appreciation/depreciation of investments during the period
    774,154  
Change in unrealized appreciation/depreciation of futures contracts during the period
    (8,988 )
         
Net realized and unrealized gain on investments and futures contracts
    2,586,933  
         
Net increase in net assets resulting from operations
  $ 3,121,224  
         
 
See notes to financial statements.

50

Statement of operations   

Table of Contents

 
MMA Praxis Value Index Fund
 
                 
    Six Months
 		       
    Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006  
 
 
From Investment Activities:
               
Net investment income
  $ 534,291     $ 821,341  
Net realized gain on investments and futures contracts
    1,821,767       3,952,768  
Change in unrealized appreciation/depreciation of investments and futures contracts during the period
    765,166       6,005,631  
                 
Net increase in net assets resulting from operations
    3,121,224       10,779,740  
                 
                 
Distributions to Class A Shareholders:
               
From net investment income
    (208,749 )     (229,838 )
From net realized gain on investment
    —       (1,046,612 )
                 
Distributions to Class B Shareholders:
               
From net investment income
    (58,101 )     (84,278 )
From net realized gain on investment
    —       (653,735 )
                 
Distributions to Class I Shareholders:
               
From net investment income
    (267,426 )     (473,923 )
From net realized gain on investment
    —       (1,273,012 )
                 
Change in net assets from distributions to shareholders
    (534,276 )     (3,761,398 )
                 
                 
Change in net assets from capital transactions
    11,493,214       4,598,465  
                 
                 
Change in net assets
    14,080,162       11,616,807  
                 
Net Assets:
               
Beginning of period
    63,294,945       51,678,138  
                 
End of period
  $ 77,375,107     $ 63,294,945  
                 
                 
Accumulated net investment income
  $ 5,422     $ 5,407  
                 
 
See notes to financial statements.

51

Statements of changes in net assets   

Table of Contents

 
MMA Praxis Value Index Fund
 
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class A Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
 
Net Asset Value, Beginning of Period
  $ 11.43     $ 10.09     $ 9.65     $ 8.65     $ 6.72     $ 8.79  
                                                 
                                                 
Investment Activities:
                                               
Net investment income
    0.06       0.22       0.15       0.12       0.10       0.07  
Net realized and unrealized gains (losses) from investments
    0.46       1.82       0.44       1.00       1.93       (2.07 )
                                                 
Total from Investment Activities
    0.52       2.04       0.59       1.12       2.03       (2.00 )
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.08 )     (0.13 )     (0.15 )     (0.12 )     (0.10 )     (0.07 )
Net realized gain
    —       (0.57 )     —       —       —       —  
Tax return of capital
    —       —       —       —       — (a)     —  
                                                 
Total Distributions
    (0.08 )     (0.70 )     (0.15 )     (0.12 )     (0.10 )     (0.07 )
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 11.87     $ 11.43     $ 10.09     $ 9.65     $ 8.65     $ 6.72  
                                                 
Total Return (excludes sales charge)
    4.57%  (b)     20.41%       6.12%       13.07%       30.38%       (22.81% )
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $ 30,269     $ 22,426     $ 39,874     $ 33,640     $ 25,815     $ 15,071  
Ratio of expenses to
average net assets
    1.02%  (c)     1.11%       1.04%       1.04%       0.95%       0.95%  
Ratio of net investment income
to average net assets
    1.52%  (c)     1.52%       1.55%       1.45%       1.49%       0.98%  
Ratio of expenses to average
net assets*
    1.24%  (c)     1.37%       1.30%       1.48%       1.71%       2.13%  
Portfolio Turnover (d)
    30.64%       55.37%       25.25%       24.76%       35.21%       30.61%  
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

52

Financial highlights   

Table of Contents

 
MMA Praxis Value Index Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                                                         
    Class B Shares
 		       
   
       
    Six Months
 		                                     
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		       
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		       
    (Unaudited)     2006     2005     2004     2003     2002        
 
Net Asset Value, Beginning of Period
  $ 11.41     $ 10.07     $ 9.62     $ 8.64     $ 6.71     $ 8.78          
                                                         
                                                         
Investment Activities:
                                                       
Net investment income
    0.05       0.10       0.09       0.08       0.07       0.03          
Net realized and unrealized gains (losses) from investments
    0.45       1.88       0.45       0.98       1.93       (2.07 )        
                                                         
Total from Investment Activities
    0.50       1.98       0.54       1.06       2.00       (2.04 )        
                                                         
                                                         
Distributions:
                                                       
Net investment income
    (0.05 )     (0.07 )     (0.09 )     (0.08 )     (0.07 )     (0.03 )        
Net realized gain
    —       (0.57 )     —       —       —       —          
                                                         
Total Distributions
    (0.05 )     (0.64 )     (0.09 )     (0.08 )     (0.07 )     (0.03 )        
                                                         
Paid-in capital from redemption fees
    —  (a)     —  (a)     —       —       —       —          
                                                         
Net Asset Value, End of Period
  $ 11.86     $ 11.41     $ 10.07     $ 9.62     $ 8.64     $ 6.71          
                                                         
Total Return (excludes redemption charge)
    4.36%  (b)     19.85%       5.61%       12.31%       29.82%       (23.24% )        
                                                         
Ratios/Supplemental Data:
                                                       
Net assets at end of period (000)
  $ 14,590     $ 13,840     $ 11,804     $ 9,155     $ 5,651     $ 3,227          
Ratio of expenses to average net assets
    1.58%  (c)     1.67%       1.59%       1.60%       1.50%       1.50%          
Ratio of net investment income
to average net assets
    0.96%  (c)     0.93%       1.00%       0.91%       0.94%       0.44%          
Ratio of expenses to average
net assets*
    1.75%  (c)     1.89%       1.78%       1.99%       2.21%       2.64%          
Portfolio Turnover (d)
    30.64%       55.37%       25.25%       24.76%       35.21%       30.61%          
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

53

Table of Contents

 
MMA Praxis Value Index Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                 
    Class I Shares
 		 
   
 
    Six Months
 		       
    Ended
 		    Period Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006 (a)  
 
Net Asset Value, Beginning of Period
  $ 11.38     $ 10.90  
                 
                 
Investment Activities:
               
Net investment income
    0.03       0.12  
Net realized and unrealized gains from investments
    0.51       1.13  
                 
Total from Investment Activities
    0.54       1.25  
                 
                 
Distributions:
               
Net investment income
    (0.10 )     (0.20 )
Net realized gain
    —       (0.57 )
                 
Total Distributions
    (0.10 )     (0.77 )
                 
Net Asset Value, End of Period
  $ 11.82     $ 11.38  
                 
Total Return (excludes redemption charge)
    4.73%  (b)     11.67%  (b)
                 
Ratios/Supplemental Data:
               
Net assets at end of period (000)
  $ 32,516     $ 27,029  
Ratio of expenses to average net assets
    0.75%  (c)     0.89%  (c)
Ratio of net investment income to average net assets
    1.79%  (c)     1.69%  (c)
Ratio of expenses to average net assets*
    0.75%  (c)     0.95%  (c)
Portfolio Turnover (d)
    30.64%       55.37%  
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been indicated.
(a) For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
(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.

54

Table of Contents

Portfolio manager’s letter
 
United States equity markets continued their move upward during the first half of the year and the Fund participated in this performance since its launch on May 1, 2007. As we discussed in the MMA Praxis Value Index Fund commentary, the tide appears to have shifted in favor of the growth style of investing, but only time will tell if the trend has staying power. Since May 1, the Fund (Class A Share, NAV) has returned 1.70 percent, slightly trailing its benchmark, the MSCI U.S. Prime Growth Index, which generated a return of 2.24 percent for the same brief time.
 
The MMA Praxis Growth Index Fund is managed in the same fashion the MMA Praxis Value Index Fund has been over the last year or so, but with a focus on the growth style of investing. As a refresher, the Fund incorporates MMA’s stewardship investing process and screens just like the other equity funds in the MMA Praxis family. Portfolio construction is determined by a custom benchmark index maintained by MSCI, which is based on MMA’s screens. This custom index serves as the target index for the Fund, which typically owns fewer than the total number of securities in the custom index in order to minimize the costs associated with trading and owning additional securities while still maintaining the intrinsic characteristics of the custom benchmark.
 
The MSCI Prime Market Growth Index was chosen as the Fund’s public benchmark for several reasons, but primarily because we believe it is best at representing how active growth style investors actually manage portfolios. The index includes stocks drawn from the MSCI Prime Market 750 Index having characteristics most often associated with the growth style of investing. Its design leads to an accurate representation of the growth style of the market, as well as lower portfolio turnover than some of its peers, thus lowering trading expenses.
 
As with the MMA Praxis Value Index Fund, we expect the Fund to differ in return compared to the MSCI Prime Market Growth Index as a result of MMA’s screens, which will add to performance in some environments and will hinder Fund returns in others.
 
Chad Horning, CFA®
MMA Praxis Growth Index Fund Co-manager

55

MMA Praxis Growth Index Fund   

Table of Contents

 
MMA Praxis Growth Index Fund
 
June 30, 2007 (Unaudited)
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%
             
ADVERTISING — 0.3%
             
Omnicom Group, Inc. 
    100   $ 5,292  
               
ADVERTISING AGENCIES — 0.3%
             
Interpublic Group of Companies, Inc. (a)(b)
    132     1,505  
Lamar Advertising Co. (b)
    28     1,757  
Monster Worldwide, Inc. (a)
    54     2,219  
               
            5,481  
               
AIRLINES — 0.3%
             
AMR Corp. (a)(b)
    78     2,055  
Southwest Airlines Co. 
    221     3,295  
               
            5,350  
               
APPAREL MANUFACTURERS — 0.8%
             
Coach, Inc. (a)
    104     4,929  
NIKE, Inc. — Class B
    101     5,887  
Polo Ralph Lauren Corp. 
    20     1,962  
               
            12,778  
               
ASSET MANAGEMENT — 0.6%
             
Franklin Resources, Inc. 
    49     6,491  
Legg Mason, Inc. 
    39     3,837  
               
            10,328  
               
BANKS — 1.2%
             
Berkshire Hathaway, Inc. — Class B (a)
    3     10,815  
Mellon Financial Corp. 
    49     2,156  
State Street Corp. 
    87     5,951  
               
            18,922  
               
BEVERAGES — 2.1%
             
Coca-Cola Company
    180     9,416  
PepsiCo, Inc. 
    389     25,226  
               
            34,642  
               
BROADCAST SERVICES & PROGRAMMING — 0.3%
             
Liberty Global, Inc. — Class A (a)(b)
    63     2,585  
Liberty Global, Inc. — Series C (a)
    53     2,083  
               
            4,668  
               
BROADCASTING/CABLE — 3.1%
             
Cablevision Systems Corp. — Class A
    68     2,461  
Citadel Broadcasting Corp. (b)
    33     213  
Comcast Corp. — Class A (a)
    502     14,116  
Comcast Corp. — Special Class A (a)
    271     7,577  
DIRECTV Group, Inc. (a)
    180     4,160  
EchoStar Communications Corp. — Class A (a)
    60     2,602  
Liberty Media Corp. — Capital (a)
    24     2,824  
Walt Disney Co. 
    500     17,070  
               
            51,023  
               

56

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
BROKERAGE SERVICES — 1.5%
             
Charles Schwab Corp. 
    275   $ 5,643  
Goldman Sachs Group, Inc. 
    79     17,123  
TD Ameritrade Holding Corp. (b)
    83     1,660  
               
            24,426  
               
BUSINESS SERVICES — 2.1%
             
Accenture Ltd. 
    157     6,734  
Automatic Data Processing, Inc. 
    145     7,029  
CBOT Holdings, Inc. (a)
    9     1,859  
Ceridian Corp. (a)
    44     1,540  
Chicago Mercantile Exchange Holdings, Inc. 
    7     3,741  
IntercontinentalExchange, Inc. (a)
    12     1,774  
Iron Mountain, Inc. (a)
    77     2,012  
Johnson Controls, Inc. 
    51     5,904  
Paychex, Inc. 
    102     3,990  
               
            34,583  
               
CHEMICALS — GENERAL — 0.7%
             
Air Products & Chemicals, Inc. 
    28     2,250  
Huntsman Corp. (b)
    106     2,577  
Praxair, Inc. 
    91     6,551  
               
            11,378  
               
COAL — 0.3%
             
Arch Coal, Inc. (b)
    44     1,531  
CONSOL Energy, Inc. 
    56     2,582  
               
            4,113  
               
COMMERCIAL SERVICES — 0.2%
             
Equifax, Inc. 
    60     2,665  
               
COMMUNICATIONS EQUIPMENT — 0.3%
             
Avaya, Inc. (a)
    250     4,210  
               
COMMUNICATIONS SERVICES — 0.7%
             
American Tower Corp. (a)
    125     5,250  
Crown Castle International Corp. (a)
    180     6,529  
               
            11,779  
               
COMPUTER SERVICES — 0.4%
             
First Data Corp. 
    195     6,371  
               
COMPUTER STORAGE DEVICES — 1.2%
             
EMC Corp. (a)
    568     10,281  
Micron Technology, Inc. (a)
    218     2,732  
Network Appliance, Inc. (a)
    112     3,270  
SanDisk Corp. (a)
    61     2,985  
               
            19,268  
               
COMPUTERS & PERIPHERALS — 8.5%
             
Apple, Inc. (a)
    218     26,605  
Cisco Systems, Inc. (a)
    1,505     41,915  
Dell, Inc. (a)
    504     14,389  
Hewlett-Packard Co. 
    433     19,320  

57

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
International Business Machines Corp. 
    243   $ 25,576  
NCR Corp. (a)
    57     2,995  
Sun Microsystems, Inc. (a)
    968     5,092  
               
            135,892  
               
CONGLOMERATES — 1.2%
             
3M Co. 
    179     15,535  
Emerson Electric Co. 
    97     4,540  
               
            20,075  
               
CONSTRUCTION — 0.5%
             
Fluor Corp. 
    32     3,564  
Joy Global, Inc. 
    37     2,158  
Martin Marietta Materials, Inc. 
    14     2,268  
               
            7,990  
               
CONSUMER FINANCIAL SERVICES — 1.4%
             
American Express Co. 
    261     15,968  
MasterCard, Inc. — Class A (b)
    18     2,986  
Western Union Co. 
    211     4,395  
               
            23,349  
               
CONSUMER GOODS & SERVICES — 2.9%
             
Procter & Gamble Co. 
    772     47,239  
               
CONTAINERS — PAPER & PLASTIC — 0.1%
             
Sealed Air Corp. 
    64     1,985  
               
COSMETICS & TOILETRIES — 1.0%
             
Avon Products, Inc. 
    120     4,410  
Clorox Co. 
    50     3,105  
Colgate-Palmolive Co. 
    130     8,431  
               
            15,946  
               
E-COMMERCE — 1.2%
             
Amazon.com, Inc. (a)
    83     5,678  
eBay, Inc. (a)
    292     9,397  
Liberty Media Corp. — Interactive (a)
    188     4,198  
               
            19,273  
               
ELECTRIC SERVICES — 0.5%
             
TXU Corp. 
    109     7,336  
               
ELECTRIC UTILITIES — 0.5%
             
AES Corp. (a)
    199     4,354  
NRG Energy, Inc. (a)(b)
    95     3,949  
               
            8,303  
               
ELECTRONIC & ELECTRICAL — GENERAL — 0.1%
             
Harman International Industries, Inc. 
    19     2,219  
               
FINANCIAL SERVICES — 1.3%
             
E*Trade Financial Corp. (a)
    116     2,562  
Moody’s Corp. 
    61     3,794  
Nymex Holdings, Inc. (b)
    25     3,141  

58

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
NYSE Euronext (b)
    35   $ 2,577  
SLM Corp. 
    82     4,722  
T. Rowe Price Group, Inc. 
    80     4,151  
               
            20,947  
               
FOOD PROCESSING — 0.7%
             
Campbell Soup Co. 
    76     2,950  
Kellogg Co. 
    107     5,541  
Wm. Wrigley Jr., Co. 
    63     3,485  
               
            11,976  
               
FOOD STORES — 0.8%
             
Kroger Co. 
    85     2,391  
Safeway, Inc. 
    88     2,995  
Sysco Corp. 
    164     5,410  
Whole Foods Market, Inc. (b)
    39     1,494  
               
            12,290  
               
HEALTH CARE SERVICES — 0.5%
             
AmerisourceBergen Corp. 
    29     1,435  
Laboratory Corp. of America Hldgs. (a)
    34     2,661  
Quest Diagnostics, Inc. (b)
    63     3,253  
               
            7,349  
               
HOTELS & MOTELS — 0.7%
             
Hilton Hotels Corp. 
    99     3,314  
Marriott International, Inc. — Class A
    101     4,367  
Starwood Hotels & Resorts Worldwide, Inc. (a)
    62     4,158  
               
            11,839  
               
INDUSTRIAL GOODS — 0.8%
             
American Standard Companies, Inc. 
    59     3,480  
Fastenal Co. (b)
    68     2,846  
Illinois Tool Works, Inc. 
    125     6,774  
               
            13,100  
               
INSURANCE — 3.1%
             
Aetna, Inc. 
    135     6,669  
AFLAC, Inc. 
    126     6,476  
CIGNA Corp. 
    74     3,864  
Coventry Health Care, Inc. (a)
    50     2,883  
Health Net, Inc. (a)
    37     1,954  
Humana, Inc. (a)
    52     3,167  
Principal Fianncial Group, Inc. 
    76     4,430  
Prudential Financial, Inc. 
    59     5,737  
The Progressive Corp. 
    179     4,283  
WellPoint, Inc. (a)
    144     11,496  
               
            50,959  
               
INTERNET INFORMATION PROVIDERS — 2.4%
             
Google, Inc. — Class A (a)
    57     29,833  
Yahoo!, Inc. (a)
    309     8,383  
               
            38,216  
               

59

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
IRON & STEEL — 0.4%
             
Allegheny Technologies, Inc. 
    25   $ 2,622  
Nucor Corp. 
    79     4,633  
               
            7,255  
               
MACHINERY — 0.3%
             
Deere & Co. 
    41     4,950  
               
MANUFACTURING — 0.7%
             
Cummins, Inc. 
    30     3,036  
Ford Motor Co. (b)
    370     3,485  
PACCAR Inc. 
    62     5,397  
               
            11,918  
               
MEDICAL - BIOMEDICAL/GENETIC — 1.0%
             
Amgen, Inc. (a)
    292     16,145  
               
MEDICAL EQUIPMENT & SUPPLIES — 3.9%
             
Baxter International, Inc. 
    184     10,367  
Becton, Dickinson & Co. 
    66     4,917  
Biomet, Inc. 
    73     3,338  
C.R. Bard, Inc. 
    35     2,892  
DENTSPLY International, Inc. 
    200     7,652  
Medtronic, Inc. 
    285     14,779  
St. Jude Medical, Inc. (a)
    100     4,149  
Stryker Corp. 
    75     4,732  
Thermo Fisher Scientific, Inc. (a)
    111     5,741  
Zimmer Holdings, Inc. (a)
    63     5,348  
               
            63,915  
               
MULTIMEDIA — 0.8%
             
Time Warner, Inc. 
    612     12,876  
               
OFFICE EQUIPMENT & SERVICES — 0.1%
             
Xerox Corp. (a)
    102     1,885  
               
OIL & GAS EXPLORATION, PRODUCTION & SERVICES — 1.7%
             
ENSCO International Inc. 
    39     2,379  
EOG Resources, Inc. 
    64     4,676  
Foster Wheeler, Ltd. (a)
    20     2,140  
GlobalSantaFe Corp. (b)
    61     4,407  
Transocean, Inc. (a)
    75     7,949  
XTO Energy, Inc. (b)
    90     5,409  
               
            26,960  
               
OIL & GAS OPERATIONS — 1.5%
             
Chesapeake Energy Corp. (b)
    75     2,595  
Noble Corp. 
    36     3,511  
Pride International, Inc. (a)(b)
    44     1,648  
Questar Corp. 
    76     4,017  
Southwestern Energy Co. (a)
    53     2,359  
Sunoco, Inc. 
    37     2,948  

60

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
The Williams Companies, Inc. 
    170   $ 5,375  
Ultra Petroleum Corp. (a)
    43     2,375  
               
            24,828  
               
OIL WELL SERVICES & EQUIPMENT — 1.5%
             
Baker Hughes, Inc. 
    75     6,310  
Cameron International Corp. (a)
    32     2,287  
Diamond Offshore Drilling, Inc. 
    19     1,930  
Nabors Industries Ltd. (a)(b)
    52     1,736  
National-Oilwell Varco, Inc. (a)
    47     4,899  
Smith International, Inc. 
    50     2,932  
Weatherford International, Inc. (a)
    89     4,916  
               
            25,010  
               
PHARMACEUTICALS — 9.1%
             
Abbott Laboratories
    196     10,496  
Allergan, Inc. 
    80     4,611  
Amylin Pharmaceuticals, Inc. (a)(b)
    48     1,976  
Biogen Idec, Inc. (a)(b)
    86     4,601  
Cardinal Health, Inc. 
    92     6,499  
Celgene Corp. (a)
    97     5,561  
Express Scripts Inc. — Class A (a)
    66     3,301  
Forest Laboratories, Inc. (a)
    86     3,926  
Genentech, Inc. (a)
    112     8,474  
Genzyme Corp. (a)
    58     3,735  
Gilead Sciences, Inc. (a)
    236     9,150  
Johnson & Johnson
    679     41,840  
McKesson Corp. 
    82     4,890  
Millennium Pharmaceuticals, Inc. (a)
    167     1,765  
Schering-Plough Corp. 
    377     11,476  
UnitedHealth Group, Inc. 
    327     16,723  
Wyeth
    118     6,766  
               
            145,790  
               
PRINTING & PUBLISHING — 0.5%
             
Dun & Bradstreet Corp. 
    22     2,266  
McGraw-Hill Companies, Inc. 
    96     6,535  
               
            8,801  
               
RAILROADS — 0.5%
             
CSX Corp. 
    116     5,229  
Norfolk Southern Corp. 
    60     3,154  
               
            8,383  
               
REAL ESTATE INVESTMENT TRUST — 0.3%
             
General Growth Properties, Inc. 
    66     3,495  
Public Storage, Inc. 
    27     2,074  
               
            5,569  
               

61

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
REAL ESTATE OPERATIONS — 0.5%
             
CB Richard Ellis Group, Inc. (a)
    65   $ 2,373  
ProLogis
    65     3,698  
Simon Property Group, Inc. 
    25     2,326  
               
            8,397  
               
RECREATIONAL PRODUCTS — 0.3%
             
Harley-Davidson, Inc. 
    78     4,650  
               
RESTAURANTS — 1.1%
             
McDonald’s Corp. 
    111     5,634  
Starbucks Corp. (a)
    197     5,169  
Yum! Brands, Inc. 
    217     7,101  
               
            17,904  
               
RETAIL — 8.4%
             
American Eagle Outfitters, Inc. 
    75     1,925  
AutoZone, Inc. (a)
    15     2,049  
Bed Bath & Beyond, Inc. (a)
    98     3,527  
Best Buy Co., Inc. 
    116     5,414  
CDW Corp. 
    18     1,529  
Costco Wholesale Corp. 
    137     8,017  
CVS Caremark Corp. 
    379     13,815  
J.C. Penny Company, Inc. 
    64     4,632  
Kohl’s Corp. (a)
    85     6,038  
Limited Brands, Inc. 
    71     1,949  
Macy’s, Inc. 
    106     4,217  
Medco Health Solutions, Inc. (a)
    73     5,693  
Nordstrom, Inc. 
    67     3,425  
Office Depot, Inc. (a)
    120     3,636  
Sears Holding Corp. (a)
    27     4,577  
Staples, Inc. 
    229     5,434  
Target Corp. 
    212     13,483  
TJX Companies, Inc. 
    163     4,483  
Walgreen Co. 
    246     10,711  
Wal-Mart Stores, Inc. 
    618     29,731  
               
            134,285  
               
RETAIL - BUILDING PRODUCTS — 2.0%
             
Home Depot, Inc. 
    521     20,501  
Lowe’s Companies, Inc. 
    377     11,570  
               
            32,071  
               
SCHOOLS & EDUCATIONAL SERVICES — 0.2%
             
Apollo Group, Inc. (a)
    52     3,038  
               
SCIENTIFIC & TECHNICAL INSTRUMENTS — 0.1%
             
Applera Corp. - Applied Biosystems Group
    38     1,161  
               
SEMICONDUCTORS — 5.5%
             
Advanced Micro Devices, Inc. (a)(b)
    162     2,317  
Altera Corp. 
    95     2,102  
Analog Devices, Inc. 
    85     3,199  

62

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
Applied Materials, Inc. 
    330   $ 6,557  
Broadcom Corp. — Class A (a)
    132     3,861  
Intel Corp. 
    1,397     33,193  
KLA-Tencor Corp. 
    51     2,802  
Lam Research Corp. (a)
    55     2,827  
Marvell Technology Group, Ltd. (a)
    138     2,513  
Maxim Integrated Products, Inc. 
    94     3,141  
MEMC Electronic Materials, Inc. (a)
    47     2,873  
National Semiconductor Corp. 
    161     4,551  
NVIDIA Corp. (a)
    93     3,842  
Texas Instruments, Inc. 
    356     13,396  
Xilinx, Inc. 
    88     2,356  
               
            89,530  
               
SOFTWARE & COMPUTER SERVICES — 6.9%
             
Adobe Systems, Inc. (a)
    152     6,103  
Autodesk, Inc. (a)
    72     3,390  
CA, Inc. 
    124     3,203  
Citrix Systems, Inc. (a)
    75     2,525  
Cognizant Technology Solutions Corp. (a)
    38     2,853  
Electronic Arts, Inc. (a)
    87     4,117  
Intuit, Inc. (a)
    107     3,219  
McAfee, Inc. (a)
    61     2,147  
Microsoft Corp. 
    2,188     64,480  
Oracle Corp. (a)
    1,041     20,518  
               
            112,555  
               
SOFTWARE & SERVICES — 1.4%
             
Akamai Technologies, Inc. (a)
    52     2,529  
Bea Systems, Inc. (a)
    155     2,122  
BMC Software, Inc. (a)
    62     1,879  
Fiserv, Inc. (a)
    50     2,840  
IMS Health, Inc. 
    161     5,173  
Symantec Corp. (a)
    242     4,888  
VeriSign, Inc. (a)
    115     3,649  
               
            23,080  
               
TELECOMMUNICATIONS — 3.0%
             
Corning, Inc. (a)
    353     9,019  
Juniper Networks, Inc. (a)
    152     3,826  
Level 3 Communications, Inc. (a)(b)
    304     1,778  
Motorola, Inc. 
    589     10,425  
NII Holdings, Inc. — Class B (a)
    42     3,391  
Qualcomm, Inc. 
    414     17,964  
Virgin Media Inc. 
    69     1,682  
               
            48,085  
               

63

Table of Contents

 
MMA Praxis Growth Index Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 97.9%, continued
             
TRANSPORTATION SERVICES — 1.6%
             
C.H. Robinson Worldwide, Inc. 
    51   $ 2,679  
Expeditors International of Washington, Inc. 
    60     2,478  
Fedex Corp. 
    73     8,101  
United Parcel Service, Inc. — Class B
    165     12,044  
               
            25,302  
               
TOTAL COMMON STOCKS
          1,587,903  
               
SHORT TERM INVESTMENTS — 2.0%
             
Northern Institutional Government Select Portfolio
    31,863     31,863  
               
               
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 3.8%
             
Northern Institutional Liquid Asset Portfolio
    62,073     62,073  
               
               
TOTAL INVESTMENTS (Cost $1,670,626) — 103.7%
          1,681,839  
Liabilities in excess of other assets — (3.7%)
          (60,224 )
               
NET ASSETS — 100.0%
        $ 1,621,615  
               
 
 
(a) Non-income producing securities.
(b) All or part of this security was on loan, as of June 30, 2007.
 
See notes to financial statements.

64

Table of Contents

 
MMA Praxis Growth Index Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $1,608,553)
  $ 1,619,766  
Investments held as collateral for securities loaned, at value (Cost $62,073)
    62,073  
         
Total Investments
    1,681,839  
         
Interest and dividends receivable
    727  
Receivable for capital shares sold
    10,901  
Receivable for investments sold
    2,900  
Prepaid expenses
    16,257  
         
Total Assets
    1,712,624  
         
LIABILITIES:
       
Payable for investments purchased
    28,369  
Payable for securities loaned
    62,073  
Accrued expenses and other payables:
       
Affiliates
    435  
Distribution fees
    132  
         
Total Liabilities
    91,009  
         
NET ASSETS:
       
Capital
    1,607,847  
Accumulated net investment loss
    (140 )
Accumulated net realized gain on investments
    2,695  
Net unrealized appreciation on investments
    11,213  
         
Net Assets
  $ 1,621,615  
         
Net Assets
       
Class A
  $ 464,757  
Class B
    133,625  
Class I
    1,023,233  
         
Total
  $ 1,621,615  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    45,707  
Class B
    13,162  
Class I
    100,644  
         
Total
    159,513  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 10.17  
         
Class A — Maximum Sales Charge
    5.25%  
         
Class A — Maximum Offering Price Per Share
[(100%/(100%-Maximum Sales Charge) of
net asset value adjusted to the nearest cent]
  $ 10.73  
         
Class B — offering price per share**(A)
  $ 10.15  
         
Class I — offering price per share**(A)
  $ 10.17  
         
 
 
*  Includes securities on loan, $55,767.
** Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
 
See notes to financial statements.

65

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis Growth Index Fund
 
For the six months ended June 30, 2007 (a) (Unaudited)
 
         
INVESTMENT INCOME:
       
Dividends
  $ 2,057  
Interest
    963  
         
Total Investment Income
    3,020  
         
         
EXPENSES:
       
Investment advisory fees
    659  
Distribution fees — Class A
    102  
Distribution fees — Class B
    74  
Shareholder servicing fees — Class A
    102  
Shareholder servicing fees — Class B
    25  
Administration fees
    307  
Legal fees and expenses
    1,179  
Trustees’ fee and expenses
    168  
Custodian fees
    202  
Other expenses
    1,995  
         
Total expenses before reductions/reimbursements
    4,813  
Expenses reimbursed by Investment Adviser
    (1,531 )
Expenses reduced by Distributor
    (122 )
         
Net Expenses
    3,160  
         
         
Net Investment Income
    (140 )
         
         
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
       
Net realized gain on security transactions
    2,695  
Change in unrealized appreciation/depreciation of investments during the period
    11,213  
         
Net realized and unrealized gain on investments
    13,908  
         
Net increase in net assets resulting from operations
  $ 13,768  
         
 
 
(a) Represents the period of commencement of operations (May 1, 2007) through June 30, 2007.
 
See notes to financial statements.

66

Statement of operations   

Table of Contents

 
MMA Praxis Growth Index Fund
 
         
    Six Months
 		 
    Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
 
 
From Investment Activities:
       
Net investment income
  $ (140 )
Net realized gain on investments and futures contracts
    2,695  
Change in unrealized appreciation/depreciation of investments during the period
    11,213  
         
Net increase in net assets resulting from operations
    13,768  
         
         
Change in net assets from capital transactions
    1,607,847  
         
         
Change in net assets
    1,621,615  
         
         
Net Assets:
       
Beginning of period
    —  
         
End of period
  $ 1,621,615  
         
         
Distributions in excess of net investment income
  $ (140 )
         
 
 
(a) Represents the period of commencement of operations (May 1, 2007) through June 30, 2007.
 
See notes to financial statements.

67

Statements of changes in net assets   

Table of Contents

 
MMA Praxis Growth Index Fund
 
Financial highlights
 
For a share outstanding throughout the period indicated.
 
         
    Class A Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
 
 
Net Asset Value, Beginning of Period
  $ 10.00  
         
         
Investment Activities:
       
Net investment loss
    (— ) (b)
Net realized and unrealized gains from investments
    0.16  
         
Total from Investment Activities
    0.16  
         
         
Paid-in capital from redemption fees
    0.01  
         
Net Asset Value, End of Period
  $ 10.17  
         
Total Return (excludes sales charge)
    1.70%  (c)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 465  
Ratio of expenses to average net assets
    1.54%  (d)
Ratio of net investment loss to average net assets
    (0.41% )(d)
Ratio of expenses to average net assets*
    2.46%  (d)
Portfolio Turnover (e)
    69.20%  
 
 
*  During the period certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

68

Financial highlights   

Table of Contents

 
MMA Praxis Growth Index Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
         
    Class B Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
Net Asset Value, Beginning of Period
  $ 10.00  
         
         
Investment Activities:
       
Net investment loss
    (0.01 )
Net realized and unrealized gains from investments
    0.16  
         
Total from Investment Activities
    0.15  
         
         
Paid-in capital from redemption fees
    —  (b)
         
Net Asset Value, End of Period
  $ 10.15  
         
Total Return (excludes redemption charge)
    1.50%  (c)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 134  
Ratio of expenses to average net assets
    2.08%  (d)
Ratio of net investment loss to average net assets
    (1.00% )(d)
Ratio of expenses to average net assets*
    2.93%  (d)
Portfolio Turnover (e)
    69.20%  
 
 
* During the period certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

69

Table of Contents

 
MMA Praxis Growth Index Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
         
    Class I Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
Net Asset Value, Beginning of Period
  $ 10.00  
         
         
Investment Activities:
       
Net investment income
    —  (b)
Net realized and unrealized gains from investments
    0.17  
         
Total from Investment Activities
    0.17  
         
         
Net Asset Value, End of Period
  $ 10.17  
         
Total Return (excludes redemption charge)
    1.70%  (c)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 1,023  
Ratio of expenses to average net assets
    1.34%  (d)
Ratio of net investment income to average net assets
    0.08%  (d)
Ratio of expenses to average net assets*
    2.03%  (d)
Portfolio Turnover (e)
    69.20%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

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Table of Contents

 
Portfolio manager’s letter
 
Global equity markets continued their strong run into 2007, with non-U.S. developed and emerging markets leading their domestic counterparts, growth besting value, and smaller caps generally topping larger caps.
 
Key and significant contributors to performance
On a relative basis, the major positive contributions came from the United Kingdom, Emerging Markets, specifically Latin America, the Middle East, Eastern Europe, and Canada. A strong theme for the period was companies that were related to mining, exploration, and refinement of commodities. The United Kingdom’s BHP Billiton and Rio Tinto, who are both involved in exploring, extracting, and processing minerals and metal resources, continued to strengthen sentiment of strong commodity prices on rumors of consolidation in the sector. This was also the case for the strongest contributor of our Emerging Market holdings Brazilian-based, Companhia Vale do Rio Doce, again a top 10 performer for the 6-month period. The company is the second largest mining operation in the world and the largest logistics operator in Brazil. Strength in commodity prices also benefited oil giants Royal Dutch Shell, BP, and Satoil, on the back of continued global oil price gains. In Emerging Markets, the portfolio’s second strongest contributor to return in terms of total effect came from Singapore’s Keppel Corp. Keppel is a world leader in the construction of off-shore oil and gas drilling rigs, for which demand is strong, and it also has interests in real estate construction and developments in Singapore, another strong contributor. Finally, Keppel has an added catalyst in the potential for development of more infrastructure projects, i.e. power, water, and waste water. For 2008, 58 percent of net profits are expected to come from oil rigs, 23 percent from property, 5 percent from infrastructure, and 13 percent from other investments. In Canada, the strongest contributor came from Yellow Pages Income Fund and BCE.
 
Among the notable individual stock contributors was France’s Michelin, the world’s largest tire manufacturer. Michelin benefited from its recent cost cutting programs and from an exceptionally supportive sales environment, especially in its heavy industrial tire manufacturing division. Other contributors in France included, Schneider Electric and materials mega group Compagnie de Saint-Gobain. ABN Amro, the Dutch bank, rose sharply early in the six-month period on takeover interest from Barclays. Nintendo continued to perform strongly based on the performance of its Wii gaming console and DS2 portable gaming device. The success of the Nintendo Wii has been due to the company’s strategy of disrupting the gaming market through the introduction of an innovative product that broadens the industry’s audience by bringing in non-traditional gamers.
 
On a sector basis, Consumer Discretionary, Health Care, Energy, and Information Technology were the highest contributors respectively for the six-month period.
 
Key and significant detractors from performance
Europe was the weakest region due largely to stock selections in Germany, Sweden, and Switzerland. In total effect terms, detractors in Europe included Finland’s Nokia, the world’s largest manufacturer of cell phones, and Germany’s real estate investment firm PATRIZIA Immobilien. In the case of Nokia, our underweight detracted from results as it was a strong performer for the six-month period. In Sweden and Switzerland, our underweight of what was largely a positive six-month period, detracted from results. In Japan, our underweight and stock selection in what was a stronger than expected region for the first half of 2007, hindered Fund performance. Japanese detractors included Financials, Orix Corp., and Bank of Yokohama; Chemical companies, Tokuyama Corp. and Hitachi; Pharmaceutical, Eisai Co.; Electronics, Sony; and Utilities giant, Tokyo Gas. Tokuyama Corp., a manufacturer of polysilicon, a necessary ingredient in solar panels that will continue to be in short supply, has been affected by higher input costs. Meanwhile, investors reacted negatively to conservative earnings guidance from the company. Tokyo Gas weakened when it predicted a 30 percent drop in operating profit for 2008.
 
On a sector basis, Materials, Utilities, Industrials, and Financials were the largest detractors for the period.

71

MMA Praxis International Fund   

Table of Contents

Strategy and outlook
The outlook for international equity markets, in our opinion, should continue to be highly influenced by events in the United States, where liquidity is being reduced. Although the sub-prime mortgage problems have been well chronicled, many other systemic problems are just starting to come into focus as liquidity flows slow. Currently, we have structured the portfolio to be consistent with this view. Systemic risks in the United States include the unknown risks from using mathematical models to price securities being actively traded, as well as the assumption that liquidity conditions will not change. In addition, there is the risk of “contagion.” In difficult markets, when poor quality holdings cannot be easily sold to meet redemptions, high quality positions may have to be sold instead. Thus, contagion can easily spread from the poorer to higher quality issues.
 
There are many types of investment pools that have been formed in recent years that are not transparent, that rely heavily on leveraged or borrowed funds, and that are not held to the same standards as other parts of the asset management industry. As we look ahead, we think aversion to risk may grow and markets may become more volatile. Energy costs are higher than had been expected at the beginning of 2007 and interest rates are increasing in many parts of the world. Earnings are still good, but the rate of improvement is decelerating. The U.S. consumer is getting squeezed and higher taxes may be just around the corner.
 
Finally, equity markets have already had quite a run over the last few years, especially in emerging markets and in the small cap sector. Given these warning signals, we believe the Fund is positioned prudently as an international equity alternative that is respectful of the risks in the market. It is structured for investors who want to diversify, but with lower risk levels. We believe it offers the potential for attractive relative returns.
 
Gilman C. Gunn, III
MMA Praxis International Fund Manager

72

Table of Contents

MMA Praxis International Fund
 
Average annual total returns as of 6/30/07
 
(bargraph)
 
                                         
    Inception
 		               
   
Date
 
1 Year
 
3 Year
 
5 Year
 
10 Year
Class A
    5/12/99       22.19%       18.98%       12.70%       5.39%  
Class A*
    5/12/99       15.75%       16.87%       11.49%       4.82%  
                                         
Class B
    4/1/97       21.36%       18.21%       11.97%       4.94%  
Class B**
    4/1/97       17.36%       17.49%       11.84%       4.94%  
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
* Reflects maximum front-end sales charge of 5.25%.
 
** The Fund imposes a back-end sales charge (load) on Class B Shares if you sell your shares before a certain period of time has elasped. This is called a Contingent Deferred Sales Charge (“CDSC”). The CDSC declines over five years starting with year one and ending in year six as follows: 4%, 4%, 3%, 2%, 1%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 4/1/97. The B Share Contingent Deferred Sales Charge (CDSC) does not apply to performance over 5 years; therefore, the 10-year return does not reflect the CDSC.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.

73

Performance review   

Table of Contents

 
MMA Praxis International Fund
 
Performance review (continued)
 
Growth of $10,000 investment 6/30/97 to 6/30/07
 
(CHART)
 
                                             
Class A - load     Class B - no load     MSCI EAFE - index performance/gross  
Date     Balance     Date     Balance     Date     Balance  
 
  6/30/1997       9,479       6/30/1997       10,000       6/30/1997       10,000  
  9/30/1997       9,520       9/30/1997       10,043       9/30/1997       9,936  
  12/31/1997       8,769       12/31/1997       9,251       12/31/1997       9,164  
  3/31/1998       10,205       3/31/1998       10,766       3/31/1998       10,519  
  6/30/1998       10,865       6/30/1998       11,462       6/30/1998       10,638  
  9/30/1998       9,448       9/30/1998       9,968       9/30/1998       9,133  
  12/31/1998       10,871       12/31/1998       11,469       12/31/1998       11,028  
  3/31/1999       11,096       3/31/1999       11,706       3/31/1999       11,189  
  6/30/1999       11,588       6/30/1999       12,225       6/30/1999       11,481  
  9/30/1999       12,245       9/30/1999       12,895       9/30/1999       11,993  
  12/31/1999       15,486       12/31/1999       16,286       12/31/1999       14,038  
  3/31/2000       15,844       3/31/2000       16,644       3/31/2000       14,031  
  6/30/2000       14,423       6/30/2000       15,130       6/30/2000       13,484  
  9/30/2000       13,275       9/30/2000       13,909       9/30/2000       12,404  
  12/31/2000       12,355       12/31/2000       12,927       12/31/2000       12,079  
  3/31/2001       10,619       3/31/2001       11,098       3/31/2001       10,429  
  6/30/2001       10,096       6/30/2001       10,529       6/30/2001       10,338  
  9/30/2001       8,440       9/30/2001       8,784       9/30/2001       8,896  
  12/31/2001       9,214       12/31/2001       9,578       12/31/2001       9,517  
  3/31/2002       9,323       3/31/2002       9,692       3/31/2002       9,571  
  6/30/2002       8,814       6/30/2002       9,144       6/30/2002       9,385  
  9/30/2002       7,067       9/30/2002       7,324       9/30/2002       7,537  
  12/31/2002       7,437       12/31/2002       7,688       12/31/2002       8,026  
  3/31/2003       6,668       3/31/2003       6,886       3/31/2003       7,373  
  6/30/2003       7,805       6/30/2003       8,049       6/30/2003       8,816  
  9/30/2003       8,317       9/30/2003       8,561       9/30/2003       9,537  
  12/31/2003       9,454       12/31/2003       9,721       12/31/2003       11,169  
  3/31/2004       9,846       3/31/2004       10,097       3/31/2004       11,661  
  6/30/2004       9,514       6/30/2004       9,742       6/30/2004       11,712  
  9/30/2004       9,453       9/30/2004       9,669       9/30/2004       11,685  
  12/31/2004       10,876       12/31/2004       11,100       12/31/2004       13,480  
  3/31/2005       10,805       3/31/2005       11,006       3/31/2005       13,466  
  6/30/2005       10,650       6/30/2005       10,831       6/30/2005       13,365  
  9/30/2005       11,596       9/30/2005       11,778       9/30/2005       14,761  
  12/31/2005       12,198       12/31/2005       12,377       12/31/2005       15,369  
  3/31/2006       13,200       3/31/2006       13,366       3/31/2006       16,825  
  6/30/2006       13,115       6/30/2006       13,262       6/30/2006       16,984  
  9/30/2006       13,423       9/30/2006 A     13,574       9/30/2006       17,661  
  12/31/2006       14,676       12/31/2006 A     14,840       12/31/2006       19,497  
  3/31/2007       15,078       3/31/2007 A     15,247       3/31/2007       20,306  
  6/30/2007       16,016       6/30/2007 A     16,203       6/30/2007       21,661  
 
For performance purposes, the above graph has not been adjusted for CDSC charges.
 
This chart represents historical performance of a hypothetical investment of $10,000 in the International Fund from 6/30/97 to 6/30/07, and represents the reinvestment of dividends and capital gains in the Fund.
 
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. To obtain performance information current to the most recent month end, please visit mmapraxis.com.
 
The total return set forth reflects certain expenses that were voluntarily reduced, reimbursed or paid by third party. In such instances, and without this activity, total return would have been lower.
 
* Reflects maximum front-end sales charge of 5.25%.
 
Class A Share of this Fund were not in existence prior to 5/12/99. Class A Share performance calculated for any period prior to 5/12/99 is based on the performance of Class B Share since inception of 4/1/97.
 
1  The MSCI EAFE Index is a widely recognized, unmanaged index composed of a sample of companies representative of the developed markets throughout the world, excluding the United States and Canada.
 
The above 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. An investor cannot invest directly in an index, although they can invest in its underlying securities.

74

Table of Contents

 
MMA Praxis International Fund
 
June 30, 2007 (Unaudited)
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%
             
ARGENTINA — 0.7%
             
AGRICULTURE — 0.1%
             
Cresud S.A. ADR (b)
    5,869   $ 125,538  
               
BANKS — 0.2%
             
Banco Macro Bansud S.A. (b)
    9,714     319,299  
               
REAL ESTATE — 0.4%
             
IRSA Inversiones y Representaciones S.A. (a)
    41,556     768,786  
               
            1,213,623  
               
AUSTRALIA — 1.0%
             
AIRPORT DEVELOPMENT — 0.3%
             
Macquarie Airports
    154,134     528,340  
               
FINANCIAL SERVICES — 0.4%
             
National Australia Bank Ltd. 
    20,650     718,703  
               
INVESTMENT COMPANIES — 0.3%
             
Macquarie Infrastructure Group (b)
    187,770     573,538  
               
            1,820,581  
               
BELGIUM — 1.4%
             
CHEMICALS-SPECIALTY — 0.3%
             
Umicore
    2,626     573,259  
               
SPECIAL PURPOSE ENTITY — 1.1%
             
Compagnie Nationale a Portefeuille (CNP)/National Portefeuille Maatschappij (NPM)
    3,900     282,331  
Groupe Bruxelles Lamber S.A. (b)
    13,588     1,697,511  
               
            1,979,842  
               
            2,553,101  
               
BERMUDA — 0.2%
             
INSURANCE — 0.2%
             
Catlin Group Ltd. 
    46,681     448,721  
               
BRAZIL — 1.0%
             
MINERALS — 0.9%
             
Companhia Vale do Rio Doce ADR (b)
    36,465     1,624,516  
               
TELECOMMUNICATIONS — 0.1%
             
Tim Participacoes ADR (b)
    5,253     181,071  
               
            1,805,587  
               
CANADA — 1.2%
             
PUBLISHING — 1.2%
             
Yellow Pages Income Fund
    173,422     2,263,017  
               
FINLAND — 1.2%
             
FINANCIAL SERVICES — 0.3%
             
Sampo Oyj
    18,600     537,795  
               
MACHINERY & ENGINEERING — 0.4%
             
KCI Konecranes Oyj (a)
    16,000     673,787  
               
TELECOMMUNICATIONS — 0.5%
             
Nokia Oyj
    37,779     1,064,204  
               
            2,275,786  
               

75

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
FRANCE — 14.4%
             
BANKS — 1.8%
             
BNP Paribas S.A. 
    27,607   $ 3,302,003  
               
BUILDING & CONSTRUCTION — 2.3%
             
Bouygues S.A. 
    14,935     1,257,269  
Compagnie de Saint-Gobain
    18,513     2,089,243  
Imerys S.A. (b)
    7,979     811,239  
               
            4,157,751  
               
CHEMICALS — 0.0%
             
Rhodia Inc. 
    10,161     38,374  
               
ELECTRIC SERVICES — 1.4%
             
Schneider Electric S.A. 
    18,592     2,620,623  
               
FOOD DIVERSIFIED — 0.9%
             
Sodexho Alliance S.A. 
    23,808     1,712,887  
               
FOOD RETAIL — 1.5%
             
Carrefour S.A. (b)
    39,006     2,752,992  
               
GAS DISTRIBUTION — 0.5%
             
Gaz de France (b)
    18,591     943,454  
               
INSURANCE — 1.8%
             
Axa
    31,812     1,378,412  
CNP Assurances (b)
    14,674     1,886,019  
               
            3,264,431  
               
MEDIA — 1.5%
             
Vivendi Universal S.A. 
    65,880     2,845,659  
               
OFFICE AUTOMATION & EQUIPMENT — 1.1%
             
Neopost S.A. (b)
    14,112     2,072,816  
               
TELECOMMUNICATIONS — 0.7%
             
France Telecom S.A. 
    44,492     1,228,612  
               
TIRE & RUBBER — 0.9%
             
Michelin (b)
    12,399     1,742,993  
               
            26,682,595  
               
GERMANY — 8.5%
             
APPAREL MANUFACTURERS — 0.5%
             
Adidas-Salomon AG (b)
    14,477     924,960  
               
BANKS — 1.1%
             
Deutsche Bank AG
    14,635     2,123,685  
               
BUILDING & CONSTRUCTION — 0.7%
             
Bilfinger Berger AG
    15,300     1,360,069  
               
CHEMICALS — 0.6%
             
BASF AG
    7,887     1,033,984  
               
ELECTRIC - INTEGRATED — 1.4%
             
RWE AG (b)
    23,818     2,531,237  
               
INSURANCE — 0.7%
             
Allianz AG
    5,899     1,378,230  
               

76

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
MACHINERY/PRINT TRADE — 0.4%
             
Heidelberger Druckmaschin (b)
    14,404   $ 696,656  
               
PHARMACEUTICALS — 1.6%
             
Fresenius AG
    36,330     2,769,687  
               
REAL ESTATE — 0.4%
             
Patrizia Immobilien AG (a)(b)
    44,241     785,708  
               
SOFTWARE — 1.1%
             
SAP AG
    40,514     2,076,291  
               
            15,680,507  
               
GREECE — 1.5%
             
BANKS — 1.2%
             
Alpha Credit Bank A.E
    21,000     662,335  
Greek Postal Savings Bank S.A. (a)
    43,738     1,024,254  
National Bank of Greece SA
    7,745     444,518  
               
            2,131,107  
               
FINANCIAL SERVICES — 0.3%
             
Hellenic Exchanges S.A. 
    23,049     605,280  
               
            2,736,387  
               
HONG KONG — 2.9%
             
DIVERSIFIED FINANCIAL SERVICES — 0.6%
             
Guoco Group Ltd. 
    79,000     1,108,308  
               
REAL ESTATE INVESTMENT/MANAGEMENT — 0.3%
             
Hysan Development Company Ltd. (b)
    230,000     611,812  
               
REAL ESTATE OPERATORS/DEVELOPERS — 0.3%
             
Chinese Estates Holdings Ltd. 
    348,000     547,408  
               
TELECOMMUNICATIONS — 1.2%
             
China Unicom Ltd. 
    1,238,000     2,131,042  
               
TELEVISION — 0.5%
             
Television Broadcasts Ltd. 
    131,000     921,426  
               
            5,319,996  
               
IRELAND — 1.0%
             
BANKS — 0.5%
             
Anglo Irish Bank Corp. plc (b)
    50,171     1,025,492  
               
BUILDING PRODUCTS — 0.5%
             
CRH plc
    17,862     885,181  
               
            1,910,673  
               
ISRAEL — 0.7%
             
PHARMACEUTICALS — 0.7%
             
Teva Pharmaceutical Industries Ltd. (b)
    32,980     1,360,425  
               
ITALY — 2.9%
             
BANKS — 1.2%
             
Intesa SanPaolo
    55,626     390,794  
UniCredito Italiano S.p.A
    198,925     1,785,276  
               
            2,176,070  
               

77

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
FINANCIAL SERVICES — 1.3%
             
IFI-Istituto Finanziario Industriale S.p.A. (a)
    25,356   $ 1,023,507  
IFIL — Investments S.p.A. 
    133,274     1,441,434  
               
            2,464,941  
               
RETAIL — 0.4%
             
Geox S.p.A
    37,802     700,009  
               
            5,341,020  
               
JAPAN — 15.4%
             
AUTOMOTIVE — 1.8%
             
Toyota Motor Corp. 
    54,600     3,458,362  
               
BANKS — 1.4%
             
Bank of Yokohama Ltd. 
    163,000     1,143,628  
Chiba Bank
    66,000     586,333  
Mitsubishi Tokyo Financial Group, Inc. 
    35     386,536  
Sumitomo Trust & Banking Co. 
    41,000     391,205  
               
            2,507,702  
               
BUILDING & CONSTRUCTION — 0.3%
             
Okumura Corp. (b)
    91,000     466,288  
               
CHEMICALS — 0.8%
             
Hitachi Chemical Co. Ltd. (b)
    17,700     401,015  
Tokuyama Corp. (b)
    79,000     1,030,281  
               
            1,431,296  
               
COSMETICS & TOILETRIES — 0.3%
             
Shiseido Company Ltd. 
    29,000     619,351  
               
ELECTRONIC & ELECTRICAL - GENERAL — 4.5%
             
CANON, Inc. 
    65,000     3,816,232  
Fanuc Ltd. 
    4,900     506,135  
Keyence Corp. 
    2,800     612,319  
Sony Corp. 
    35,100     1,804,239  
Square Enix Co. Ltd. (b)
    26,300     664,201  
THK CO. Ltd
    41,500     1,041,333  
               
            8,444,459  
               
ENTERTAINMENT SYSTEMS — 1.7%
             
Nintendo Co. Ltd. 
    8,400     3,076,373  
               
FINANCIAL SERVICES — 1.6%
             
Orix Corp. 
    11,530     3,038,276  
               
GAS DISTRIBUTION — 0.6%
             
Tokyo Gas Co. Ltd. 
    238,000     1,128,686  
               
INSURANCE — 0.8%
             
Mitsui Sumitomo Insurance Co. 
    86,000     1,104,812  
Sompo Japan Insurance, Inc. 
    32,000     392,123  
               
            1,496,935  
               
MOTION PICTURES & SERVICES — 0.2%
             
Toho Co. Ltd. (b)
    20,100     363,986  
               

78

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
PHARMACEUTICALS — 0.6%
             
Eisai Co. Ltd. 
    26,400   $ 1,153,372  
               
RETAIL — 0.4%
             
Yamada Denki Co. Ltd. 
    6,700     700,767  
               
TEXTILES — 0.4%
             
Toray Industries, Inc. (b)
    99,000     732,381  
               
            28,618,234  
               
MEXICO — 0.4%
             
BUILDING PRODUCTS — 0.4%
             
Cemex S.A. ADR (b)
    21,160     780,801  
               
NETHERLANDS — 4.6%
             
CHEMICALS — 0.7%
             
Akzo Nobel N.V. 
    15,268     1,321,883  
               
ELECTRONIC & ELECTRICAL - GENERAL — 0.9%
             
Philips Electronics N.V. 
    40,268     1,720,282  
               
FINANCIAL SERVICES — 1.2%
             
ING Groep N.V. 
    51,001     2,263,720  
               
FOOD DIVERSIFIED — 1.3%
             
Unilever NV
    79,336     2,476,464  
               
TELECOMMUNICATIONS — 0.5%
             
Koninklijke (Royal) KPN N.V. 
    50,163     836,559  
               
            8,618,908  
               
NORWAY — 3.0%
             
OIL COMP-INTEGRATED — 2.2%
             
Statoil ASA (b)
    130,400     4,057,725  
               
TELECOM SERVICES — 0.8%
             
Telenor ASA
    78,200     1,534,958  
               
            5,592,683  
               
RUSSIA — 0.8%
             
STEEL — 0.4%
             
Evraz Group GDR
    21,121     868,073  
               
TELECOMMUNICATIONS — 0.4%
             
AFK Sistema (b)
    23,372     663,765  
               
            1,531,838  
               
SINGAPORE — 1.6%
             
DIVERSIFIED OPERATIONS — 1.2%
             
Keppel Corp., Ltd. 
    277,000     2,261,594  
               
FINANCIAL SERVICES — 0.4%
             
DBS Group Holdings Ltd. 
    48,000     714,827  
               
            2,976,421  
               
SOUTH KOREA — 0.7%
             
AUTOMOTIVE — 0.2%
             
Hyundai Motor Co. Ltd. GDR (b)
    14,605     332,994  
               

79

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
FOOD PRODUCTS — 0.3%
             
Lotte Confectionary Co. Ltd. (a)
    350   $ 466,288  
               
TELECOMMUNICATIONS — 0.2%
             
KT Corp. (a)
    9,650     451,535  
               
            1,250,817  
               
SPAIN — 4.0%
             
APPAREL — 0.5%
             
Industria de Diseno Textil, S.A. (a)
    16,287     964,984  
               
BANKS — 0.7%
             
Banco Santander Central Hispano S.A. 
    72,372     1,341,147  
               
UTILITIES - TELECOMMUNICATIONS — 2.8%
             
Telefonica S.A. 
    226,234     5,065,192  
               
            7,371,323  
               
SWEDEN — 1.2%
             
METALS — 0.3%
             
Assa Abloy AB (a)
    28,800     637,969  
               
WIRELESS COMMUNICATIONS — 0.9%
             
Telefonaktiebolaget LM Ericsson
    382,000     1,533,765  
               
            2,171,734  
               
SWITZERLAND — 8.8%
             
CHEMICALS — 0.9%
             
Lonza Group AG
    17,428     1,606,543  
               
FINANCIAL SERVICES — 0.9%
             
Credit Suisse Group
    5,331     381,222  
UBS AG
    20,380     1,227,972  
               
            1,609,194  
               
FOOD PRODUCTS — 3.2%
             
Lindt & Spruengli AG
    518     1,411,725  
Nestle S.A. 
    11,868     4,527,621  
               
            5,939,346  
               
INSURANCE — 0.7%
             
Swiss Re
    14,913     1,366,160  
               
INVESTMENT COMPANIES — 0.5%
             
Pargesa Holding AG
    8,963     1,003,797  
               
PHARMACEUTICALS — 2.6%
             
Novartis AG
    31,540     1,781,629  
Roche Holding AG
    17,314     3,081,510  
               
            4,863,139  
               
            16,388,179  
               
TAIWAN — 1.0%
             
SEMICONDUCTORS — 0.5%
             
United Microelectronics Corp. ADR
    1,603,000     968,926  
               

80

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 95.5%, continued
             
TELECOMMUNICATIONS — 0.5%
             
Chunghwa Telecom Co. Ltd. 
    454,660   $ 868,063  
               
            1,836,989  
               
UNITED KINGDOM — 15.4%
             
BANKS — 2.4%
             
HBOS plc
    33,059     653,812  
HSBC Holdings plc (b)
    62,000     1,129,882  
Lloyds TSB Group plc
    143,326     1,601,464  
Royal Bank of Scotland Group plc
    79,304     1,008,716  
               
            4,393,874  
               
CONTAINERS — 0.3%
             
Rexam plc
    62,428     625,157  
               
ELECTRIC SERVICES — 0.2%
             
Centrais Electricas Brasileiras S.A. (a)
    1,500,000     44,314  
National Grid plc
    25,669     380,358  
               
            424,672  
               
INSURANCE — 0.6%
             
Amlin plc
    67,123     378,371  
Aviva plc
    24,735     369,001  
Prudential plc
    31,017     444,657  
               
            1,192,029  
               
MEDICAL PRODUCTS — 0.7%
             
Smith & Nephew plc
    108,642     1,344,801  
               
MINERALS — 3.1%
             
BHP Billiton plc
    100,210     2,798,757  
Rio Tinto plc
    38,212     2,936,198  
               
            5,734,955  
               
OIL COMP-INTEGRATED — 6.0%
             
BG Group plc
    61,496     1,014,335  
BP plc
    489,135     5,922,065  
Royal Dutch Shell plc - Class A
    99,117     4,047,866  
               
            10,984,266  
               
PHARMACEUTICALS — 0.5%
             
GlaxoSmithKline plc
    37,470     981,796  
TELECOMMUNICATIONS — 1.3%
             
Vodafone Group plc
    727,379     2,450,641  
UTILITIES-WATER - 0.3%
             
United Utilities plc (b)
    32,741     466,085  
               
            28,598,276  
               
TOTAL COMMON STOCKS
          177,148,222  
               
               
               

81

Table of Contents

 
MMA Praxis International Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES OR
 		   
    PRINCIPAL
 		   
    AMOUNT   VALUE
 
PREFERRED STOCK — 0.4%
             
GERMANY — 0.4%
             
AUTOMOTIVE — 0.4%
             
Porsche AG (a)
    404   $ 723,487  
               
               
RIGHTS — 0.0%
             
BELGIUM — 0.0%
             
HOLDING COMPANY — 0.0%
             
Groupe Bruxelles Lambert S.A. 
    13,588     12,691  
               
               
CORPORATE NOTES — 1.1%
             
COMMUNITY DEVELOPMENT — 1.1%
             
DOMESTIC — 1.1%
             
MMA Community Development Investment, Inc., 2.98%, 12/31/09, (c)+
    795,000     795,000  
MMA Community Development Investment, Inc., 4.47%, 12/31/09, (c)+
    1,180,00     1,180,000  
               
TOTAL CORPORATE NOTES
          1,975,000  
               
               
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 12.7%
             
Banco Santander Central Hispano S.A. 
    278,515     278,515  
Northern Institutional Liquid Asset Portfolio
    22,348,605     22,348,605  
U.S. Treasury Inflation Indexed Bonds 2.00%, 1/15/26
    286,112     272,506  
U.S. Treasury Inflation Indexed Note 3.50%, 1/15/11
    33,211     41,190  
U.S. Treasury Inflation Indexed Note, 2.375%, 1/15/25
    70,856     75,519  
US Treasury Bonds, 5.25%, 2/15/29
    484,490     497,368  
               
TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING
          23,513,703  
               
               
TOTAL INVESTMENTS (Cost $158,266,797) — 109.7%
          203,373,103  
Liabilities in excess of other assets — (9.7%)
          (17,952,990 )
               
NET ASSETS — 100.0%
        $ 185,420,113  
               
 
 
(a) Non-income producing securities.
(b) All or part of this security was on loan, as of June 30, 2007.
(c) Represents affiliated restricted security as to resale to investors and is not registered under the Securities Act of 1933. These securities have been deemed illiquid under guidelines established by the Board of Trustees. Acquisition date and current cost: MMA Community Development Investment, Inc., 2.98% - 12/01, $795,000 and MMA Community Development Investment, Inc., 4.47% - 12/01, $1,180,000. At June 30, 2007 these securities had an aggregate market value of $1,975,000, representing 1.1% of net assets.
+ Variable rate security. Rates presented are the rates in effect at June 30, 2007. Date presented reflects next rate change date.
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
plc — Public Liability Company
 
See notes to financial statements.

82

Table of Contents

 
MMA Praxis International Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $132,778,094)
  $ 177,884,400  
Investments in affiliates, at value (cost $1,975,000)
    1,975,000  
Investments held as collateral for securities loaned, at value (cost $23,513,703)
    23,513,703  
         
Total Investments
    203,373,103  
         
Cash
    4,319,653  
Foreign currency, at value (cost $157,876)
    157,837  
Currency contracts receivable
    588,022  
Interest and dividends receivable
    265,926  
Receivable for capital shares sold
    17,467  
Receivable for investments sold
    2,770,259  
Tax reclaim receivable
    329,572  
Prepaid expenses
    23,468  
         
Total Assets
    211,845,307  
         
LIABILITIES:
       
Distributions payable to shareholders
    325,294  
Payable for capital shares redeemed
    1,769,275  
Payable for currency contracts
    588,038  
Payable for securities loaned
    23,513,703  
Unrealized depreciation on foreign currency exchange contracts
    4,010  
Accrued expenses and other payables:
       
Investment advisory fees
    137,497  
Affiliates
    19,166  
Distribution fees
    24,398  
Trustees fees
    5,121  
Other
    38,692  
         
Total Liabilities
    26,425,194  
         
NET ASSETS:
       
Capital
    140,150,771  
Distribution in excess of net investment income
    (1,499,691 )
Accumulated net realized gain on investments and foreign currency transactions
    1,662,727  
Net unrealized appreciation on investments and foreign currency translations
    45,106,306  
         
Net Assets
  $ 185,420,113  
         
Net Assets
       
Class A
  $ 49,611,796  
Class B
    24,216,868  
Class I
    111,591,449  
         
Total
  $ 185,420,113  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    3,225,205  
Class B
    1,601,872  
Class I
    7,271,153  
         
Total
    12,098,230  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 15.38  
         
Class A — Maximum Sales Charge
    5.25%  
         
Class A — Maximum Offering Price Per Share
[(100%/(100%-Maximum Sales Charge) of
net asset value adjusted to the nearest cent]
  $ 16.23  
         
Class B — offering price per share**(A)
  $ 15.12  
         
Class I — offering price per share**(A)
  $ 15.35  
         
 
*  Includes securities on loan of $22,918,490.
** Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
See notes to financial statements.

83

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis International Fund
 
For the six months ended June 30, 2007 (Unaudited)
 
         
INVESTMENT INCOME:
       
Dividends
  $ 3,609,080  
Foreign tax withholding
    (461,630 )
Interest
    (505 )
Income from securities lending
    25,562  
Interest from affiliates
    17,217  
         
Total Investment Income
    3,189,724  
         
         
EXPENSES:
       
Investment advisory fees
    782,431  
Administration fees
    121,693  
Distribution fees — Class A
    58,721  
Distribution fees — Class B
    89,378  
Shareholder servicing fees — Class A
    58,721  
Shareholder servicing fees — Class B
    29,793  
Reimbursement of Fund expenses paid by Adviser
    87,496  
Custodian fees
    4,578  
Legal fees and expenses
    41,753  
Trustees’ fee and expenses
    18,909  
Other expenses
    103,362  
         
Total expenses before reductions/reimbursements
    1,396,835  
Expenses reduced by Distributor
    (70,638 )
         
Net Expenses
    1,326,197  
         
         
Net Investment Income
    1,863,527  
         
         
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
       
Net realized gain on investments and foreign currency transactions
    9,588,435  
Change in unrealized appreciation/depreciation of investments
and foreign currency translations during the period
    4,029,882  
         
Net realized and unrealized gain on investments
and foreign currency transactions
    13,618,317  
         
Net increase in net assets resulting from operations
  $ 15,481,844  
         
 
See notes to financial statements.

84

Statement of operations   

Table of Contents

 
MMA Praxis International Fund
 
                 
    Six Months
 		       
    Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006  
 
 
From Investment Activities:
               
Net investment income
  $ 1,863,527     $ 1,407,169  
Net realized gain on investments and foreign currency transactions
    9,588,435       14,968,084  
Change in unrealized appreciation/depreciation of investments and futures contracts during the period
    4,029,882       12,974,631  
                 
Net increase in net assets resulting from operations
    15,481,844       29,349,884  
                 
                 
Distributions to Class A Shareholders:
               
From net investment income
    (505,725 )     (390,536 )
                 
Distributions to Class B Shareholders:
               
From net investment income
    (172,308 )     (120,020 )
                 
Distributions to Class I Shareholders:
               
From net investment income
    (1,418,154 )     (1,439,082 )
                 
Change in net assets from distributions to shareholders
    (2,096,187 )     (1,949,638 )
                 
                 
Change in net assets from capital transactions
    4,413,302       (6,332,799 )
                 
                 
Change in net assets
    17,798,959       21,067,447  
                 
Net Assets:
               
Beginning of period
    167,621,154       146,553,707  
                 
End of period
  $ 185,420,113     $ 167,621,154  
                 
                 
Distributions in excess of net investment income
  $ (1,499,691 )   $ (1,302,855 )
                 
 
See notes to financial statements.

85

Statements of changes in net assets   

Table of Contents

 
MMA Praxis International Fund
 
Financial highlights
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class A Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
 
Net Asset Value, Beginning of Period
  $ 14.23     $ 11.94     $ 10.78     $ 9.43     $ 7.45     $ 9.28  
                                                 
                                                 
Investment Activities:
                                               
Net investment income
    0.15       0.16       0.08       0.01       0.04       0.01  
Net realized and unrealized gains (losses) from investments
    1.16       2.26       1.22       1.37       2.00       (1.79 )
                                                 
Total from Investment Activities
    1.31       2.42       1.30       1.38       2.04       (1.78 )
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.16 )     (0.13 )     (0.14 )     (0.03 )     (0.06 )     (0.03 )
Tax return of capital
    —       —       —       —       —       (0.02 )
                                                 
Total Distributions
    (0.16 )     (0.13 )     (0.14 )     (0.03 )     (0.06 )     (0.05 )
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 15.38     $ 14.23     $ 11.94     $ 10.78     $ 9.43     $ 7.45  
                                                 
Total Return (excludes sales charge)
    9.19%  (b)     20.31%       12.16%       14.68%       27.53%       (19.29% )
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $  49,612     $  44,837     $ 121,173     $ 115,687     $  97,396     $  68,989  
Ratio of expenses to average net assets
    1.73%  (c)     1.76%       1.58%       1.63%       1.50%       1.45%  
Ratio of net investment income to average net assets
    1.95%  (c)     0.85%       0.74%       0.16%       0.49%       0.11%  
Ratio of expenses to average net assets*
    1.73%  (c)     2.09%       1.90%       2.01%       2.14%       2.24%  
Portfolio Turnover (d)
    56.00%       82.77%       71.93%       81.85%       145.51%       76.38%  
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

86

Financial highlights   

Table of Contents

 
MMA Praxis International Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                                                 
    Class B Shares
 		 
   
 
    Six Months
 		                               
    Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		    Year Ended
 		 
    June 30, 2007
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		    December 31,
 		 
    (Unaudited)     2006     2005     2004     2003     2002  
 
Net Asset Value, Beginning of Period
  $ 13.99     $ 11.77     $ 10.62     $ 9.32     $ 7.39     $ 9.23  
                                                 
                                                 
Investment Activities:
                                               
Net investment income (loss)
    0.06       (0.06 )     (0.01 )     (0.05 )     (0.01 )     (0.04 )
Net realized and unrealized gains (losses) from investments
    1.18       2.34       1.22       1.35       1.98       (1.78 )
                                                 
Total from Investment Activities
    1.24       2.28       1.21       1.30       1.97       (1.82 )
                                                 
                                                 
Distributions:
                                               
Net investment income
    (0.11 )     (0.06 )     (0.06 )     —  (a)     (0.04 )     —  
Tax return of capital
    —       —       —       —       —       (0.02 )
                                                 
Total Distributions
    (0.11 )     (0.06 )     (0.06 )     —       (0.04 )     (0.02 )
                                                 
Paid-in capital from redemption fees (a)
    —       —       —       —       —       —  
                                                 
Net Asset Value, End of Period
  $ 15.12     $ 13.99     $ 11.77     $ 10.62     $ 9.32     $ 7.39  
                                                 
Total Return (excludes redemption charge)
    8.85%  (b)     19.45%       11.50%       13.95%       26.73%       (19.73% )
                                                 
Ratios/Supplemental Data:
                                               
Net assets at end of period (000)
  $  24,217     $  24,186     $  25,381     $  24,094     $  21,468     $  17,608  
Ratio of expenses to average net assets
    2.38%  (c)     2.41%       2.23%       2.28%       2.15%       2.00%  
Ratio of net investment income to average net assets
    1.22%  (c)     0.17%       0.10%       (0.49% )     (0.15 )%     (0.44% )
Ratio of expenses to average net assets*
    2.47%  (c)     2.57%       2.39%       2.51%       2.63%       2.74%  
Portfolio Turnover (d)
    56.00%       82.77%       71.93%       81.85%       145.51%       76.38%  
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such expense reductions had not occurred, the ratios would have been as indicated.
(a) Amount rounds to less than $0.005 per share.
(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.

87

Table of Contents

 
MMA Praxis International Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
                 
    Class I Shares
 		 
   
 
    Six Months
 		       
    Ended
 		    Period Ended
 		 
    June 30, 2007
 		    December 31,
 		 
    (Unaudited)     2006 (a)  
 
Net Asset Value, Beginning of Period
  $ 14.20     $ 13.52  
                 
Investment Activities:
               
Net investment income
    0.08       0.10  
Net realized and unrealized gains from investments
    1.26       0.78  
                 
Total from Investment Activities
    1.34       0.88  
                 
                 
Distributions:
               
Net investment income
    (0.19 )     (0.20 )
                 
Net Asset Value, End of Period
  $ 15.35     $ 14.20  
                 
Total Return (excludes redemption charge)
    9.47%  (b)     6.61%  (b)
                 
Ratios/Supplemental Data:
               
Net assets at end of period (000)
  $  111,591     $   98,598  
Ratio of expenses to average net assets
    1.23%  (c)     1.28%  (c)
Ratio of net investment income to average net assets
    2.44%  (c)     1.23%  (c)
Ratio of expenses to average net assets*
    1.23%  (c)     1.39%  (c)
Portfolio Turnover (d)
    56.00%       82.77%  
 
 
*  During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
(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.

88

Table of Contents

Portfolio manager’s letter
 
The MMA Praxis Small Cap Fund (A Shares) returned 2.9 percent versus the Russell 2000’s gain of 2.6 percent since the Fund’s inception on May 1, 2007. Over this short period of time, during which the market rose rapidly, we prudently invested the Fund’s initial cash position into a diversified portfolio of competitively advantaged companies.
 
The performance of the Russell 2000 during the second quarter continued to be driven by global economic growth. The Industrial, Technology, and Energy sectors added the most to returns, as global growth is clearly improving the fundamental outlook for these sectors. Financials and Utilities again were laggards. The flat yield curve has hindered profitability for the Financials sector and concerns about higher long-term rates and extended valuations have had a negative impact on the Utilities sector.
 
Sector allocation and stock selection added value to the Fund during the quarter. The Fund was overweight in Industrials and Energy, two of our strongest sectors, and underweight in Financials and Utilities, two of the weakest sectors. Our positive stock selection was broad based as each of our top five contributing stocks came from different sectors.
 
Our investment strategy is to identify competitively advantaged companies that generate strong financial returns with good reinvestment opportunities, and to purchase these stocks at attractive prices. We believe this strategy of investing in competitively advantaged companies with viable strategies to increase the value of their businesses, will continue to be beneficial for our investors. Our goal is to generate superior returns over time relative to our benchmark and to minimize the risk of the portfolio.
 
Steve R. Purvis, CFA, co-portfolio manager
Luther King Capital Management

89

MMA Praxis Small Cap Fund   

Table of Contents

 
MMA Praxis Small Cap Fund
 
June 30, 2007 (Unaudited)
               
    SHARES   VALUE
 
COMMON STOCKS — 86.0%
             
AUTO & TRUCK PARTS — 2.0%
             
Drew Industries, Inc. (a)
    250   $ 8,285  
Tenneco, Inc. (b)
    700     24,528  
               
            32,813  
               
BANKS — 3.6%
             
Capitol Bancorp Ltd. (b)
    200     5,466  
City Bank (b)
    200     6,302  
First State Bancorporation, Inc. (b)
    350     7,452  
Glacier Bancorp, Inc. (b)
    400     8,140  
Sterling Financial Corp. (b)
    400     11,576  
UCBH Holdings, Inc. (b)
    1,000     18,270  
               
            57,206  
               
BIOTECHNOLOGY — 1.0%
             
Parexel International Corp. (a)
    400     16 ,824  
               
CAPITAL MARKETS — 2.4%
             
FCStone Group, Inc. (a)(b)
    300     17,193  
Pension Worldwide, Inc. (a)(b)
    850     20,851  
               
            38,044  
               
CHEMICALS — 0.7%
             
Airgas, Inc. 
    250     11,975  
               
COMMERCIAL SERVICES — 4.5%
             
Diamond Management & Technology Consultants, Inc.
    1,500     19,800  
Knoll, Inc. (b)
    800     17,920  
Mobile Mini, Inc. (a)(b)
    550     16,060  
Resources Connection, Inc. (a)
    550     18,249  
               
            72,029  
               
COMMUNICATIONS EQUIPMENT — 4.6%
             
Arris Group, Inc. (a)(b)
    1,250     21,987  
MasTec, Inc. (a)(b)
    1,350     21,356  
Powerwave Technologies, Inc. (a)(b)
    1,850     12,395  
SBA Communications Corp. (a)(b)
    550     18,475  
               
            74,213  
               
CONSTRUCTION SERVICES — 1.6%
             
EMCOR Group, Inc. (a)
    350     25,515  
               
CONSUMER FINANCIAL SERVICES — 0.6%
             
Cash America International, Inc. 
    250     9,913  
               
CONSUMER SERVICES — 2.1%
             
Bright Horizons Family Solutions, Inc. (a)(b)
    400     15,564  
Capella Education Co. (a)(b)
    400     18,412  
               
            33,976  
               

90

Schedule of portfolio investments   

Table of Contents

 
MMA Praxis Small Cap Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 86.0%, continued
             
ELECTRONIC EQUIPMENT & INSTRUMENTS — 5.7%
             
Anixter International (a)(b)
    350   $ 26,323  
Franklin Electric Co., Inc. (b)
    350     16,513  
I.D. Systems, Inc. (a)(b)
    450     5,792  
LSI Industries, Inc. (b)
    350     6,265  
MTS Systems Corp. 
    400     17,867  
Rofin-Sinar Technologies, Inc. (a)(b)
    250     17,250  
               
            90,010  
               
ENERGY EQUIPMENT & SERVICES — 4.2%
             
Atwood Oceanics, Inc. (a)(b)
    200     13,724  
Core Laboratories N.V. (a)(b)
    200     20,338  
Dril-Quip, Inc. (a)(b)
    450     20,228  
Superior Well Services, Inc. (a)(b)
    500     12,705  
               
            66,995  
               
FOOD PRODUCTS — 2.3%
             
Reddy Ice Holdings, Inc. (b)
    650     18,538  
UAP Holding Corp. (b)
    600     18,084  
               
            36,622  
               
HEALTH CARE SERVICES — 2.2%
             
inVentiv Health, Inc. (a)
    500     18,305  
PSS World Medical, Inc. (a)(b)
    300     5,466  
The TriZetto Group, Inc. (a)(b)
    600     11,616  
               
            35,387  
               
HEALTHCARE EQUIPMENT & SUPPLIES — 3.7%
             
DJO Incorporated (a)(b)
    300     12,381  
Meridian Bioscience, Inc. (b)
    750     16,245  
MWI Veterinary Supply, Inc. (a)(b)
    450     17,951  
Wright Medical Group, Inc. (a)(b)
    500     12,060  
               
            58,637  
               
HOTELS, RESTAURANTS & LEISURE — 3.9%
             
Great Wolf Resorts, Inc. (a)(b)
    1,100     15,675  
IHOP Corp. 
    300     16,329  
Life Time Fitness, Inc. (a)(b)
    350     18,631  
The Cheesecake Factory, Inc. (a)(b)
    500     12,260  
               
            62,895  
               
HOUSEHOLD PRODUCTS — 1.7%
             
Rent-A-Center, Inc. (a)
    350     9,181  
Tempur-Pedic International, Inc. (b)
    700     18,130  
               
            27,311  
               
INDUSTRIAL PRODUCTS & SERVICES — 1.4%
             
Raven Industries, Inc. (b)
    650     23,212  
               
INSURANCE — 3.0%
             
American Equity Investment Holding Co. (b)
    1,400     16,912  
Argonaut Group, Inc. (a)
    400     12,484  
Max Capital Group Ltd. 
    650     18,395  
               
            47,791  
               

91

Table of Contents

 
MMA Praxis Small Cap Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 86.0%, continued
             
INTERNET SOFTWARE & SERVICES — 1.9%
             
RADVision Ltd. (a)(b)
    750   $ 15,772  
TIBCO Software, Inc. (a)(b)
    1,650     14,933  
               
            30,705  
               
IT CONSULTING SERVICES — 1.0%
             
Ness Technologies, Inc. (a)(b)
    1,200     15,612  
               
MACHINERY — 5.2%
             
CIRCOR International, Inc. 
    300     12,129  
CLARCOR, Inc. 
    550     20,586  
Gehl Co. (a)(b)
    600     18,216  
Kaydon Corp. (b)
    300     15,636  
Nordson Corp. 
    350     17,556  
               
            84,123  
               
METALS & MINING — 2.6%
             
Haynes International, Inc. (a)
    200     16,886  
Silgan Holdings, Inc. 
    450     24,876  
               
            41,762  
               
OIL & GAS OPERATIONS — 4.2%
             
Cabot Oil & Gas Corp. 
    200     7,376  
Parallel Petroleum Corp. (a)
    900     19,710  
Petroquest Energy, Inc. (a)(b)
    1,350     19,629  
Union Drilling, Inc. (a)(b)
    1,250     20,525  
               
            67,240  
               
PHARMACEUTICALS — 1.3%
             
American Oriental Bioengineering, Inc. (a)
    650     5,785  
Bentley Pharmaceuticals, Inc. (a)(b)
    1,300     15,782  
               
            21,567  
               
REAL ESTATE — 1.1%
             
Potlatch Corp. (b)
    400     17,220  
               
RETAIL — 6.6%
             
Build-A-Bear-Workshop, Inc. (a)(b)
    250     6,535  
Conn’s, Inc. (a)(b)
    700     19,992  
Guitar Center, Inc. (a)(b)
    400     23,923  
Jos. A. Bank Clothiers, Inc. (b)
    550     22,808  
Stein Mart, Inc. (b)
    1,050     12,873  
Tractor Supply Co. (a)(b)
    350     18,218  
               
            104,349  
               
SEMICONDUCTORS — 2.7%
             
Cirrus Logic, Inc. (a)(b)
    2,150     17,845  
RF Micro Devices, Inc. (a)(b)
    2,500     15,600  
Trident Microsystems, Inc. (a)(b)
    500     9,175  
               
            42,620  
               

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Table of Contents

 
MMA Praxis Small Cap Fund
 
Schedule of portfolio investments, continued
June 30, 2007 (Unaudited)
 
               
    SHARES   VALUE
 
COMMON STOCKS — 86.0%, continued
             
SOFTWARE & PROGRAMMING — 5.5%
             
i2 Technologies, Inc. (b)
    700   $ 13,048  
Lawson Software, Inc. (a)(b)
    1,300     12,857  
Nuance Communications, Inc. (a)(b)
    1,800     30,113  
Verint Systems, Inc. (a)
    450     14,085  
Wind River Systems, Inc. (a)
    1,600     17,600  
               
            87,703  
               
WATER TRANSPORTATION — 2.7%
             
Kirby Corp. (a)
    450     17,276  
Quintana Maritime, Ltd. 
    1,650     26,103  
               
            43,379  
               
TOTAL COMMON STOCKS
          1,377,648  
               
               
SHORT TERM INVESTMENTS — 12.6%
             
Northern Institutional Government Select Portfolio
    201,913     201,913  
               
               
SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING — 48.5%
             
Northern Institutional Liquid Asset Portfolio
    778,451     778,451  
               
TOTAL INVESTMENTS (Cost $2,320,139) — 147.1%
          2,358,012  
Liabilities in excess of other assets — (47.1%)
          (754,518 )
               
NET ASSETS — 100.0%
        $ 1,603,494  
               
 
 
(a) Non-income producing securities.
(b) All or part of this security was on loan, as of June 30, 2007.
 
See notes to financial statements.

93

Table of Contents

 
MMA Praxis Small Cap Fund
 
June 30, 2007 (Unaudited)
 
         
ASSETS:
       
Investments, at value* (cost $1,541,688)
  $ 1,579,561  
Investments held as collateral for securities loaned, at value (Cost $778,451)
    778,451  
         
Total Investments
    2,358,012  
         
Interest and dividends receivable
    2,326  
Receivable for capital shares sold
    7,000  
Prepaid expenses
    15,394  
         
Total Assets
    2,382,732  
         
LIABILITIES:
       
Payable for capital shares redeemed
    122  
Payable for securities loaned
    778,451  
Accrued expenses and other payables:
       
Investment advisory fees
    125  
Affiliates
    426  
Distribution fees
    114  
         
Total Liabilities
    779,238  
         
NET ASSETS:
       
Capital
    1,568,242  
Accumulated net investment income
    729  
Accumulated net realized loss on investments
    (3,350 )
Net unrealized appreciation on investments
    37,873  
         
Net Assets
  $ 1,603,494  
         
Net Assets
       
Class A
  $ 489,001  
Class B
    105,673  
Class I
    1,008,820  
         
Total
  $ 1,603,494  
         
Shares Outstanding
(unlimited number of shares authorized with $.01 par value)
       
Class A
    47,514  
Class B
    10,281  
Class I
    98,000  
         
Total
    155,795  
         
Net asset value
       
Class A — Redemption Price Per Share(A)
  $ 10.29  
         
Class A — Maximum Sales Charge
    5.25%  
         
Class A — Maximum Offering Price Per Share
       
[(100%/(100%-Maximum Sales Charge) of net asset value adjusted to the nearest cent]
  $ 10.86  
         
Class B — offering price per share**(A)
  $ 10.28  
         
Class I — offering price per share**(A)
  $ 10.29  
         
 
 
*  Includes securities on loan of $754,858.
** Redemption price per share varies by length of time shares are held.
(A) Net proceeds upon redemption may include a redemption fee.
 
See notes to financial statements.

94

Statement of assets and liabilities   

Table of Contents

 
MMA Praxis Small Cap Fund
 
For the six months ended June 30, 2007 (a) (Unaudited)
 
         
INVESTMENT INCOME:
       
Dividends
  $ 2,206  
Interest
    2,655  
         
Total Investment Income
    4,861  
         
         
EXPENSES:
       
Investment advisory fees
    1,791  
Administration fees
    295  
Distribution fees — Class A
    97  
Distribution fees — Class B
    62  
Shareholder servicing fees — Class A
    97  
Shareholder servicing fees — Class B
    21  
Custodian fees
    202  
Legal fees and expenses
    1,174  
Trustees’ fee and expenses
    168  
Other expenses
    1,995  
         
Total expenses before reductions/reimbursements
    5,902  
Expenses reimbursed by Investment Adviser
    (1,665 )
Expenses reduced by Distributor
    (105 )
         
Net Expenses
    4,132  
         
         
Net Investment Income
    729  
         
         
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
       
Net realized loss on investments
    (3,350 )
Change in unrealized appreciation/depreciation of investments during the period
    37,873  
         
Net realized and unrealized gain on investments
    34,523  
         
Net increase in net assets resulting from operations
  $ 35,252  
         
 
 
(a) Represents the period of commencement of operations (May 1, 2007) through June 30, 2007.
 
See notes to financial statements.

95

Statement of operations   

Table of Contents

 
MMA Praxis Small Cap Fund
 
         
    Six Months
 		 
    Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
 
 
From Investment Activities:
       
Net investment income
  $ 729  
Net realized gain on investments
    (3,350 )
Change in unrealized appreciation/depreciation of investments during the period
    37,873  
         
Net increase in net assets resulting from operations
    35,252  
         
         
Change in net assets from capital transactions
    1,568,242  
         
         
Change in net assets
    1,603,494  
         
Net Assets:
       
Beginning of period
    —  
         
End of period
  $ 1,603,494  
         
         
Accumulated net investment income
  $ 729  
         
 
 
(a) Represents the period of commencement of operations (May 1, 2007) through June 30, 2007.
 
See notes to financial statements.

96

Statements of changes in net assets   

Table of Contents

 
MMA Praxis Small Cap Fund
 
Financial highlights
 
For a share outstanding throughout the period indicated.
 
         
    Class A Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
Net Asset Value, Beginning of Period
  $ 10.00  
         
Investment Activities:
       
Net investment income
    —  (b)
Net realized and unrealized gains from investments
    0.29  
         
Total from Investment Activities
    0.29  
         
         
Net Asset Value, End of Period
  $ 10.29  
         
Total Return (excludes sales charge)
    2.90%  (c)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 489  
Ratio of expenses to average net assets
    2.06%  (d)
Ratio of net investment income to average net assets
    0.27%  (d)
Ratio of expenses to average net assets*
    3.07%  (d)
Portfolio Turnover (e)
    39.95%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

97

Financial highlights   

Table of Contents

 
MMA Praxis Small Cap Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
         
    Class B Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
Net Asset Value, Beginning of Period
  $ 10.00  
         
Investment Activities:
       
Net investment loss
    (— ) (b)
Net realized and unrealized gains from investments
    0.28  
         
Total from Investment Activities
    0.28  
         
Net Asset Value, End of Period
  $ 10.28  
         
Total Return (excludes redemption charge)
    2.80%  (c)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 106  
Ratio of expenses to average net assets
    2.71%  (d)
Ratio of net investment loss to average net assets
    (0.41% )(d)
Ratio of expenses to average net assets*
    3.55%  (d)
Portfolio Turnover (e)
    39.95%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(b) Amount rounds to less than $0.005 per share.
(c) Not annualized.
(d) Annualized.
(e) 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.

98

Table of Contents

 
MMA Praxis Small Cap Fund
 
Financial highlights, continued
 
For a share outstanding throughout the period indicated.
 
         
    Class I Shares
 		 
   
 
    Period Ended
 		 
    June 30, 2007 (a)
 		 
    (Unaudited)  
Net Asset Value, Beginning of Period
  $ 10.00  
         
Investment Activities:
       
Net investment income
    0.01  
Net realized and unrealized gains from investments
    0.28  
         
Total from Investment Activities
    0.29  
         
Net Asset Value, End of Period
  $ 10.29  
         
Total Return (excludes redemption charge)
    2.90%  (b)
         
Ratios/Supplemental Data:
       
Net assets at end of period (000)
  $ 1,009  
Ratio of expenses to average net assets
    1.85%  (c)
Ratio of net investment income to average net assets
    0.39%  (c)
Ratio of expenses to average net assets*
    2.62%  (c)
Portfolio Turnover (d)
    39.95%  
 
 
* During the period, certain expenses were reduced, reimbursed or paid by a third party. If such activity had not occurred, the ratios would have been as indicated.
(a) For the period from May 1, 2007 (commencement of operations) through June 30, 2007.
(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.

99

Table of Contents

 
MMA Praxis Mutual Funds
 
June 30, 2007 (Unaudited)
 
1. Organization:
The MMA Praxis Mutual Funds (the “Trust”) 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 Trust currently consists of the MMA Praxis Intermediate Income Fund, the MMA Praxis Core Stock Fund, the MMA Praxis Value Index Fund, the MMA Praxis Growth Index Fund, the MMA Praxis International Fund and the MMA Praxis Small Cap Fund, (individually a “Fund”, collectively “the Funds”). These are also known as the Intermediate Income Fund, Core Stock Fund, Value Index Fund, Growth Index Fund, International Fund, and Small Cap Fund.
 
The Funds currently offer three classes of shares; Class A, Class B and Class I. Each class of shares in a Fund has identical rights and privileges except with respect to fees paid under the distribution and shareholder servicing agreements, voting rights on matters affecting a single class of shares and the exchange privileges of each class of shares.
 
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide general indemnification. Each Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against a Fund. However, based on experience, the Trust expects the risk of loss to be remote.
 
2.  Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the reporting 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. A pricing service would normally consider such factors as yield, risk, quality, maturity, type of issue, trading characteristics, special circumstances and other factors it deems relevant in determining valuations of normal institutional trading units of debt securities and would not rely exclusively on quoted prices. When fair valuing foreign securities held by the International Fund, certain pricing services might use computerized pricing models to systematically calculate adjustments to foreign security closing prices based on the latest market movements. Such pricing models utilize market data that has been obtained between the local market close and the NYSE close to compute adjustments to foreign security close prices. The methods used by the pricing service and the valuations so established will be reviewed by the Adviser under general supervision of the Funds’ Board of Trustees. Securities for which market quotations are not readily available, or are unreliable, are valued at their fair value as determined in good faith in accordance with consistently applied procedures established by and under the general supervision of the Board of Trustees. Money Market instruments and other debt securities with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market.

100

Notes to financial statements   

Table of Contents

 
MMA Praxis Mutual Funds
 
Notes to financial statements, continued
June 30, 2007 (Unaudited)
 
Investments in restricted securities are valued by the Board of Trustees or valued pursuant to valuation procedures approved by the Board of Trustees (the “Valuation Procedures”). The Valuation Procedures contemplate the Board’s delegation of the implementation of the Valuation Procedures to the Adviser. In valuing restricted securities under the Valuation Procedures, the Adviser will consider (but is not limited to) certain specific and general factors enumerated in the Valuation Procedures. The Valuation Procedures require that the Adviser report to the Board at each of its regular quarterly meetings regarding valuation of restricted securities and actions taken in connection with the Valuation Procedures.
 
In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements.” This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of June 30, 2007, the Funds do not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements reported on the statement of changes in net assets for a fiscal period.
 
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. Income and realized and unrealized gains and losses on investments are allocated to each class of shares based upon relative net assets or other appropriate basis.
 
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 adverse 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 on their capital markets by foreign entities, including restriction on investment in issuers or industries deemed sensitive to the relevant nation’s interests. These factors may limit the investment opportunities available or result in lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Foreign Currency Translation:
 
The market value of investment securities, other assets and liabilities of the Intermediate Income Fund, the Value Index Fund and the International Fund denominated in foreign currencies are translated into U.S. dollars at the current exchange rate at the close of each business day. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars based at the exchange rate on the date of the transaction.
 
The Funds do 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.

101

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MMA Praxis Mutual Funds
 
Notes to financial statements, continued
June 30, 2007 (Unaudited)
 
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 Funds’ books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from the changes in the value of assets and liabilities including investments in securities at fiscal year end, resulting from changes in the exchange rate.
 
Forward Foreign Currency Contracts:
 
The International Fund may enter into forward foreign currency exchange contracts for the purchase or sale of specific foreign currencies at a fixed price on a future date. Risks may arise upon entering these contracts for the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The International Fund will enter into forward contracts as a hedge against specific transactions or portfolio positions to protect against adverse currency movements. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the contract settlement date, at which time the International Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
 
As of June 30, 2007, the International Fund had the following forward foreign currency exchange contracts outstanding as follows:
 
                                         
Settlement
 		  To Receive/
 		    Initial
 		    Market
 		    Net Unrealized
 		    Net Unrealized
 		 
Date   To Deliver     Value     Value     Appreciation     Depreciation  
 
 
Contracts to Sell
                                       
7/3/07
    $219,836 EUR   $ 295,295       297,578     $  —     $ 2,284  
7/5/07
    105,916,015 JPY     858,607       860,333       —       1,726  
EUR - Euro
JPY - Japanese Yen
 
Futures Contracts:
 
The Funds may invest in futures contracts (stock or bond index futures contracts or interest rate futures contracts) to hedge or manage risks associated with a Funds’ securities investments. To enter into a futures contract, an amount of cash and cash equivalents, equal to a certain percentage of the market value of the futures contracts, is deposited in a segregated account with the Fund’s Custodian and/or in a margin account with a broker to collateralize the position and thereby ensure that the use of such futures is unleveraged. Positions in futures contracts may be closed out only on an exchange that provides a secondary market for such futures. However, there can be no assurance that a liquid secondary market will exist for any particular futures contract at any specific time. Thus, it may not be possible to close a futures position. In the event of adverse price movements, a Fund would continue to be required to make daily cash payments to maintain its required margin. In such situations, if a Fund had insufficient cash, it might have to sell portfolio securities to meet daily margin requirements at a time when it would be disadvantageous to do so. In addition, a Fund might be required to make delivery of the instruments to underlying futures contracts it holds. The inability to close the futures position also could have an adverse impact on a Fund’s ability to hedge or manage risks effectively.
 
Successful use of futures by a Fund is also subject to MMA Capital Management’s (the “Adviser”) ability to predict movements correctly in the direction of the market. There is an imperfect correlation between movements in the price of the future and movements in the price of the securities that are the subject of the hedge. In addition, the price of futures may not correlate perfectly with movement in the cash market due to certain market distortions. Due to the possibility of price distortion in the futures market and because of the imperfect correlation between the movements in the cash market and movements in the

102

Table of Contents

 
MMA Praxis Mutual Funds
 
Notes to financial statements, continued
June 30, 2007 (Unaudited)
 
price of futures, a correct forecast of general market trends or interest rate movements by the Adviser may still not result in a successful hedging transaction over a short time frame.
 
Most futures exchanges limit the amount of fluctuation permitted in futures contract prices during a single trading day. The daily limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day’s settlement price at the end of a trading session. Once the daily limit has been reached in a particular type of contract, no trades may be made on that day at a price beyond the limit. The daily limit governs only price movement during a particular trading day and therefore does not limit potential losses, because the limit may prevent the liquidation of unfavorable positions. Futures contract prices have occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and subjecting some futures to substantial losses.
 
The trading of futures contracts is also subject to the risk of trading halts, suspensions, exchange or clearing house equipment failures, government intervention, insolvency of a brokerage firm or clearing house or other disruptions of normal trading activity, which could at times make it difficult or impossible to liquidate existing positions or to recover excess variation margin payments.
 
Swap Agreements:
 
The Funds may enter into event-linked swaps, including credit default swaps. The credit default swap market allows a Fund to manage credit risk through buying and selling credit protection on specific names or a basket of names. The transactions are documented through swap documents. A “buyer” of credit protection agrees to pay a premium to a counterparty to assume the credit risk of an issuer upon the occurrence of certain events. The “seller” of credit protection receives a premium from a counterparty and agrees to assume the credit risk of an issuer upon the occurrence of certain events.
 
Securities Lending:
 
In order to generate additional income, each Fund may, from time to time, subject to its investment objectives and policies, lend its portfolio securities to broker-dealers, banks, or institutional borrowers of securities pursuant to agreements requiring that the loans be secured by collateral equal in value to 100% of the value of the securities loaned. Collateral for loans of portfolio securities must consist of: (1) cash in U.S. dollars, to be invested in the Northern Institutional Liquid Asset Portfolio, (2) obligations issued or guaranteed by the U.S. Treasury or by any agency or instrumentality of the U.S. Government, or (3) irrevocable, non-transferable, stand-by letters of credit issued by banks domiciled or doing business within the U.S. and meeting certain credit requirements at the time of issuance. This collateral will be valued daily by the Adviser. Should the market value of the loaned securities increase, the borrower is required to furnish additional collateral to that Fund.
 
During the time portfolio securities are on loan, the borrower pays the Fund any dividends or interest received on such securities. Loans are subject to termination by the Fund or the borrower at any time. While the Fund does not have a right to vote on securities on loan, each Fund intends to terminate the loan and regain the right to vote if that is considered important with respect to the investment. While the lending of securities may subject a Fund to certain risks, such as delays or an inability to regain the securities in the event the borrower were to default or enter into bankruptcy, each Fund will have the contract right to retain the collateral described above.
 
The Northern Trust Company serves as the Securities Lending Agent. For providing this service, the Securities Lending Agent retains 40% of the securities lending income. The securities lending income is

103

Table of Contents

 
MMA Praxis Mutual Funds
 
Notes to financial statements, continued
June 30, 2007 (Unaudited)
 
shown net of fees on the Statement of operations. For the period ended June 30, 2007, the Funds had securities on loan as follows:
 
                         
    Fee paid to
     Market
     Market Value
  
    Northern Trust
     Value of
     of Loaned
  
    Company     Collateral     Securities  
 
 
Intermediate Income Fund
  $ 3,426     $ 10,841,714     $ 10,546,971  
Core Stock Fund
    7,755       35,715,010       35,354,793  
Value Index Fund
    2,563       7,997,788       7,827,836  
Growth Index Fund
    —       62,073       55,767  
International Fund
    17,034       23,513,703       22,918,490  
Small Cap Fund
    —       778,451       754,858  
 
Community Development Investments:
 
Consistent with the investment criteria for socially responsible investing, the Board of Trustees of the Funds has authorized the Funds to make certain types of community development investments. In connection with the community development investments, the Funds have received from the Securities and Exchange Commission (“SEC”) an exemptive order that would permit each of the Funds to invest a limited portion of their respective net assets in securities issued by an affiliate of MMA Capital Management (the “Adviser”), MMA Community Development Investments, Inc. (“MMA CDI”). MMA CDI is a not-for-profit corporation that was organized specifically to promote community development investing and it seeks to fund its efforts primarily through the sale to investors of interests in certain investment pools that it has established (the “CDI-Notes”). Assets raised through offerings of CDI-Notes are then invested directly in non-profit and not-for-profit community development organizations. Each Fund, in accordance with guidelines established by the Board of Trustees and in compliance with the SEC’s exemptive order, would be permitted to invest up to 3% of its net assets in CDI-Notes. CDI-Notes have certain specific risk factors associated with them. These types of investments offer a rate of return below the prevailing market rate at acquisition and are considered illiquid, unrated and below-investment grade. They also involve a greater risk of default or price decline than investment-grade securities. However, these investments have been determined by the Board of Trustees as being a beneficial way to carry out each Fund’s goals for stewardship investing at the community level. In addition, these investments are valued in accordance with procedures approved by the Board of Trustees.
 
Dividends and Distributions:
 
Dividends from net investment income are declared and paid monthly for the Intermediate Income Fund. Dividends from the net investment income are declared and paid semi-annually for the Core Stock Fund, the Value Index Fund, the Growth Index Fund, the International Fund, and the Small Cap Fund. Distributable net realized capital gains, if any, are declared and distributed at least annually.
 
The amounts of dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. 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.
 
Federal Income Taxes:
 
It is each Fund’s policy to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of Subchapter M of the Internal Revenue Code, 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

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earned on foreign investments at various rates. Where available, the International Fund will file for claims on foreign taxes withheld.
 
Other:
 
Expenses that are directly related to a Fund are charged directly to that Fund. Other operating expenses of the Trust are prorated to each Fund on the basis of relative net assets to the Trust or another reasonable basis. Expenses specific to a class are charged directly to that class.
 
Each Fund maintains a cash balance with its Custodian and receives a reduction of its custody fees and expenses for the amount of interest earned on such uninvested cash balance. For financial reporting purposes for the six months ended June 30, 2007, there were no custodian fees and expenses reduced by the Custodian. There was no effect on net investment income. If the Funds had received a reduction of custody fees and expenses, the Funds could have invested such cash amounts in an income-producing asset if they had not agreed to a reduction of fees or expenses under the expense offset arrangement with their Custodian.
 
The Funds will charge a redemption fee of 2.00% of the total redemption amount if you sell or exchange your shares after holding them for less than 30 days subject to certain exceptions and limitations described in the prospectus.
 
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term debt securities having maturities one year or less and U.S. Government Securities) for the period ended June 30, 2007 were as follows:
 
                 
    Purchases     Sales  
 
 
Intermediate Income Fund
  $ 42,040,582     $ 31,243,468  
Core Stock Fund
    13,305,580       24,664,151  
Value Index Fund
    22,177,660       10,621,275  
Growth Index Fund
    1,683,778       109,783  
International Fund
    49,521,542       47,310,871  
Small Cap Fund
    1,395,664       52,539  
 
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 Funds. 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 Core Stock Fund; 0.30% for the Value Index Fund; 0.30% for the Growth Index Fund; 0.90% for the International Fund and 0.85% for the Small Cap Fund. Evergreen Investment Management Company, LLC, serves as the sub-adviser to the International Fund. The Adviser entered into expense limitation agreements pursuant to which the Adviser agreed to waive fees and/or reimburse expenses to the extent necessary in order to limit the total annual fund operating expenses (excluding brokerage costs, interest, taxes, dividends, fees paid to vendors providing fair value pricing and fund compliance services, legal fees, costs relating to such services and extraordinary expenses).
 
Effective May 1, 2005, each Fund has agreed to repay the Adviser for the amounts waived and/or reimbursed by the Adviser pursuant to the expense limitation agreement provided that such repayment does not cause the total annual fund operating expenses of Class A and Class B of each Fund to exceed 0.86% and 1.31%, respectively, for the Intermediate Income Fund, 1.26% and 1.91%, respectively, for the Core Stock Fund, 0.96% and 1.51%, respectively, for the Value Index Fund, and 1.50% and 2.15%, respectively, for the International Fund.
 
Effective May 1, 2007, the Funds have agreed to repay the Adviser for the amounts waived and/or reimbursed by the Adviser pursuant to the expense limitation agreement provided that such repayment does not cause the total annual fund operating expenses of Class A, Class B, and Class I of each Fund to

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exceed 0.85%, 1.30% and 0.60%, respectively, for the Intermediate Income Fund, 1.43%, 2.08%, and 1.18%, respectively, for the Core Stock Fund, 0.94%, 1.49%, and 0.69%, respectively, for the Value Index Fund, 0.94%, 1.49%, and 0.69%, respectively, for the Growth Index Fund, 1.67%, 2.32% and 1.42%, respectively, for the International Fund, and 1.45%, 2.10%, and 1.20%, respectively, for the Small Cap Fund. The Adviser has agreed to maintain these expense limitations with regard to the Funds through December 31, 2007. For the six months ended June 30, 2007, the Adviser waived investment advisory fees in the Intermediate Income Fund, Growth Index Fund, and Small Cap Fund in the amount of $169,206, $1,531, and $1,665, respectively. For the six months ended June 30, 2007, the Core Stock Fund and International Fund repaid the Adviser in the amounts of $148,501 and $87,496 for fees waived during the year ended December 31, 2004, respectively. The Value Index Fund repaid the Adviser in the amount of $7,293 for fees waived during the year ended December 31, 2006.
 
As of June 30, 2007 the Funds had the following amounts (and year of expiration) subject to repayment to the Adviser:
 
                         
Fund
  Fees Waived     Repayment Expires     Balance  
 
Intermediate Income Fund
    2004       2007     $ 365,525  
      2005       2008       134,653  
      2006       2009       299,777  
      2007       2010       169,206  
Core Stock Fund
    2004       2007       298,056  
Value Index Fund
    2006       2009       2,703  
Growth Index Fund
    2007       2010       1,531  
International Fund
    2004       2007       140,466  
      2006       2009       875  
Small Cap Fund
    2007       2010       1,665  
 
JPMorgan Chase Bank, N.A. (JPMorgan) (formerly Integrated Investment Services, Inc.) provides administrative, accounting, transfer agency, shareholder servicing and dividend disbursing services on behalf of the Trust. For these services, JPMorgan receives an annual fee, paid monthly, from each Fund.
 
IFS Fund Distributors, Inc. (“Underwriter”) is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned $7,156, $20,213, $16,792, $4,750, $13,424, and $441 from underwriting and broker commissions on the sale of shares of the Intermediate Income Fund, Core Stock Fund, Value Index Fund, Growth Index Fund, International Fund, and Small Cap Fund, respectively, for the six months ended June 30, 2007. In addition, the Underwriter collected $6,286, $13,261, $2,762, and $2,300 of contingent deferred sales loads of the Intermediate Income Fund, Core Stock Fund, Value Index Fund, and International Fund, respectively.
 
The Trust has adopted a Plan of Distribution (12b-1 plan) for each Fund under which each Fund may directly incur or reimburse the Adviser or the Underwriter for expenses related to the distribution and promotion of shares. Class A shares of each Fund may each pay an annual fee of up to 0.50% of average daily net assets of such Fund’s Class A shares. The Adviser or Underwriter may use up to 0.25% of the 12b-1 fee for shareholder servicing and up to 0.25% for distribution. Class B shares of each Fund may each pay an annual fee of up to 1.00% of the average daily net assets of such Fund’s Class B shares. The

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Adviser or Underwriter may incur 0.25% of the 12b-1 fee for shareholder servicing and up to 0.75% for distribution. Class I shares do not have a 12b-1 plan.
 
Under the terms of the Compliance Services Agreement between the Trust and JPMorgan, JPMorgan provides certain compliance services to the Trust, including developing and assisting in implementing a compliance program for JPMorgan on behalf of the Trust and providing administrative support services to the Funds’ Compliance Program and Chief Compliance Officer.
 
Certain officers of the Trust are affiliated with the Adviser and/or JPMorgan. Such officers are not paid any fees directly by the Funds for serving as officers of the Trust.
 
5. Capital Share Transactions:
Transactions in shares of the Funds are summarized below:
 
                                                 
    Intermediate Income Fund     Core Stock Fund     Value Index Fund  
    Six Months
           Six Months
           Six Months
        
    Ended
     Year
     Ended
     Year
     Ended
     Year
  
    June 30,
     Ended
     June 30,
     Ended
     June 30,
     Ended
  
    2007
     December 31,
     2007
     December 31,
     2007
     December 31,
  
    (Unaudited)     2006     (Unaudited)     2006     (Unaudited)     2006  
 
 
Capital Transactions:
                                               
Class A Shares:
                                               
Proceeds from shares issued
  $ 7,547,741     $ 23,368,669     $ 15,753,361     $ 53,164,019     $ 8,303,975     $ 10,532,393  
Dividends reinvested
    851,857       3,662,931       238,735       4,346,989       183,147       1,182,575  
Cost of shares redeemed
    (4,689,102 )     (219,524,652 )     (8,746,127 )     (180,382,298 )     (1,610,954 )     (33,573,159 )
Redemption fees
    69       324       344       492       236       49  
                                                 
Class A Share Transactions
  $ 3,710,565     $ (192,492,728 )   $ 7,246,313     $ (122,870,798 )   $ 6,876,404     $ (21,858,142 )
                                                 
Class B Shares:
                                               
Proceeds from shares issued
  $ 1,050,584     $ 1,528,574     $ 2,109,972     $ 4,217,838     $ 1,360,185     $ 2,903,509  
Dividends reinvested
    450,191       980,447       —       3,583,895       57,003       721,496  
Cost of shares redeemed
    (4,269,697 )     (11,364,388 )     (14,281,844 )     (42,019,845 )     (1,216,596 )     (3,118,121 )
Redemption fees
    1,001       21       137       346       20       12  
                                                 
Class B Share Transactions
  $ (2,767,921 )   $ (8,855,346 )   $ (12,171,735 )   $ (34,217,766 )   $ 200,612     $ 506,896  
                                                 
Class I Shares:
                                               
Proceeds from shares issued
  $ 5,560,241     $ 217,127,370     $ 3,949,929     $ 169,448,285     $ 4,800,651     $ 34,150,512  
Dividends reinvested
    3,750,734       4,708,496       554,457       8,008,878       115,822       1,447,608  
Cost of shares redeemed
    (7,074,267 )     (19,466,940 )     (10,578,277 )     (11,392,602 )     (500,275 )     (9,648,409 )
Redemption fees
    —       —       111       —       —       —  
                                                 
Class I Share Transactions
  $ 2,236,708     $ 202,368,926     $ (6,073,780 )   $ 166,064,561     $ 4,416,198     $ 25,949,711  
                                                 
Net increase (decrease) from capital transactions
  $ 3,179,352     $ 1,020,852     $ (10,999,202 )   $ 8,975,997     $ 11,493,214     $ 4,598,465  
                                                 
Share Transactions:
                                               
Class A Shares:
                                               
Issued
    780,891       2,424,912       1,007,763       3,635,980       706,610       977,633  
Reinvested
    88,493       381,386       14,816       284,489       15,447       104,969  
Redeemed
    (485,955 )     (23,152,922 )     (553,285 )     (12,209,841 )     (135,637 )     (3,072,964 )
                                                 
Change in Class A Shares
    383,429       (20,346,624 )     469,294       (8,289,372 )     586,420       (1,990,362 )
                                                 
Class B Shares:
                                               
Issued
    108,774       158,841       141,010       296,580       116,315       268,930  
Reinvested
    46,706       102,142       (16 )     244,969       4,806       64,342  
Redeemed
    (440,887 )     (1,178,373 )     (954,410 )     (2,982,376 )     (103,913 )     (291,985 )
                                                 
Change in Class B Shares
    (285,407 )     (917,390 )     (813,416 )     (2,440,827 )     17,208       41,287  
                                                 
Class I Shares:
                                               
Issued
    576,634       22,925,879       250,483       11,470,215       407,197       3,122,110  
Reinvested
    389,897       491,461       34,268       522,432       9,799       128,668  
Redeemed
    (734,460 )     (2,042,001 )     (664,770 )     (757,818 )     (42,566 )     (874,710 )
                                                 
Change in Class I Shares
    232,071       21,375,339       (380,019 )     11,234,829       374,430       2,376,068  
                                                 
Net increase (decrease) from share transactions
    330,093       111,325       (724,141 )     504,630       978,058       426,993  
                                                 

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Small Cap Fund
 
Growth Index Fund
    International Fund        
    Period
     Six Months
           Period
  
    Ended
     Ended
     Year
     Ended
  
    June 30,
     June 30,
     Ended
     June 30,
  
    2007(A)
 		    2007
     December 31,
     2007(A)
 		 
    (Unaudited)     (Unaudited)     2006     (Unaudited)  
 
 
Capital Transactions:
                               
Class A Shares:
                               
Proceeds from shares issued
  $ 477,186     $ 6,625,245     $ 13,741,809     $ 483,850  
Dividends reinvested
    —       478,090       366,496       —  
Cost of shares redeemed
    (10,188 )     (6,016,931 )     (109,243,398 )     (122 )
Redemption fees
    204       282       4,888       —  
                                 
Class A Share Transactions
  $ 467,202     $ 1,086,686     $ (95,130,205 )   $ 483,728  
                                 
Class B Shares:
                               
Proceeds from shares issued
  $ 134,202     $ 1,212,895     $ 2,088,970     $ 104,514  
Dividends reinvested
    —       168,086       116,352       —  
Cost of shares redeemed
    —       (3,211,242 )     (7,689,316 )     —  
Redemption fees
    —       6       167       —  
                                 
Class B Share Transactions
  $ 134,202     $ (1,830,255 )   $ (5,483,827 )   $ 104,514  
                                 
Class I Shares:
                               
Proceeds from shares issued
  $ 1,006,443     $ 10,624,354     $ 102,907,600     $ 980,000  
Dividends reinvested
    —       1,124,718       1,127,601       —  
Cost of shares redeemed
    —       (6,592,158 )     (9,753,968 )     —  
Redemption fees
    —       (43 )     —       —  
                                 
Class I Share Transactions
  $ 1,006,443     $ 5,156,871     $ 94,281,233     $ 980,000  
                                 
Net increase (decrease) from capital transactions
  $ 1,607,847     $ 4,413,302     $ (6,332,799 )   $ 1,568,242  
                                 
Share Transactions:
                               
Class A Shares:
                               
Issued
    46,695       448,264       1,063,909       47,526  
Reinvested
    —       31,085       27,289       —  
Redeemed
    (988 )     (404,017 )     (8,088,650 )     (12 )
                                 
Change in Class A Shares
    45,707       75,332       (6,997,452 )     47,514  
                                 
Class B Shares:
                               
Issued
    13,162       84,000       164,400       10,281  
Reinvested
    —       11,117       9,082       —  
Redeemed
    —       (221,802 )     (601,902 )     —  
                                 
Change in Class B Shares
    13,162       (126,685 )     (428,420 )     10,281  
                                 
Class I Shares:
                               
Issued
    100,644       695,333       7,598,524       98,000  
Reinvested
    —       73,271       84,548       —  
Redeemed
    —       (440,530 )     (739,993 )     —  
                                 
Change in Class I Shares
    100,644       328,074       6,943,079       98,000  
                                 
Net increase (decrease) from share transactions
    159,513       276,721       (482,793 )     155,795  
                                 
 
 
(A) Represents the period from commencement of operations (May 1, 2007) through June 30, 2007.

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6. Federal Income Tax Information:
The character of dividends paid to shareholders for federal income tax purposes during the year ended December 31, 2006 and 2005 was as follows:
 
                                                                 
    Intermediate
                 International
  
    Income Fund     Core Stock Fund     Value Index Fund     Fund  
    2006     2005     2006     2005     2006     2005     2006     2005  
 
 
From ordinary income
  $ 11,713,875     $ 10,798,788     $ 154,509     $ 854,926     $ 971,847     $ 665,289     $ 1,949,638     $ 1,562,998  
From long-term capital gains
    —       —       16,168,098       32,477       2,789,551       —       —       —  
                                                                 
Total distributions
  $ 11,713,875     $ 10,798,788     $ 16,322,607     $ 887,403     $ 3,761,398     $ 665,289     $ 1,949,638     $ 1,562,998  
                                                                 
 
The following information is computed on a tax basis for each item as of December 31, 2006:
 
                                 
    Intermediate
     Core
     Value
        
    Income
     Stock
     Index
     International
  
    Fund     Fund     Fund     Fund  
 
 
Tax cost of portfolio investments
  $ 282,932,541     $ 331,371,152     $ 53,561,550     $ 142,931,277  
   
Gross unrealized appreciation
    1,532,048       47,444,596       14,153,778       40,693,221  
Gross unrealized depreciation
    (4,045,853 )     (6,378,414 )     (643,989 )     (1,754,025 )
   
Net unrealized appreciation (depreciation)
    (2,513,805 )     41,066,182       13,509,789       38,939,196  
Undistributed ordinary income
    35,379       102,601       138,360       213,137  
Capital loss carryforward
    (2,912,479 )     (2,829,151 )     —       (7,268,447 )
Post-October losses
    (68,512 )     (168,790 )     (8,588 )     —  
Other temporary differences
    —       —       —       (201 )
   
Accumulated earnings (deficit)
  $ (5,459,417 )   $ 38,170,842     $ 13,639,561     $ 31,883,685  
   
 
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and investments in Passive Foreign Investment Companies.
 
The following information is computed on a tax basis for each item as of June 30, 2007:
 
                         
    Intermediate
     Core
     Value
  
    Income
     Stock
     Index
  
    Fund     Fund     Fund  
 
Tax cost of portfolio investments
  $ 289,242,714     $ 330,231,486     $ 71,166,555  
   
Gross unrealized appreciation
  $ 535,961     $ 57,719,879     $ 15,496,776  
Gross unrealized depreciation
    (7,099,659 )     (3,884,195 )     (1,218,240 )
   
Net unrealized appreciation (depreciation)
  $ (6,563,698 )   $ 53,835,684     $ 14,278,536  
   
 
                         
    Growth
           Small
  
    Index
     International
     Cap
  
    Fund     Fund     Fund  
 
Tax cost of portfolio investments
  $ 1,670,626     $ 158,888,234     $ 2,320,139  
   
Gross unrealized appreciation
  $ 44,976     $ 46,866,564     $ 66,137  
Gross unrealized depreciation
    (33,763 )     (2,381,695 )     (28,264 )
   
Net unrealized appreciation
  $ 11,213     $ 44,484,869     $ 37,873  
   

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MMA Praxis Mutual Funds
 
Notes to financial statements, continued
June 30, 2007 (Unaudited)
 
As of December 31, 2006, the following Funds had net capital loss carryforwards to offset future net capital gains, if any:
 
                 
    Amount     Expires  
 
 
Intermediate Income Fund
  $ 270,941       2008  
      532,675       2009  
      673,793       2010  
      157,433       2012  
      1,277,637       2014  
                 
    $ 2,912,479          
                 
                 
Core Stock Fund
  $ 2,829,151       2011  
                 
                 
International Fund
  $ 7,268,447       2010  
                 
 
During the year ended December 31, 2006, the following Funds utilized capital loss carryforwards:
 
         
Core Stock Fund
  $ 8,195,892  
Value Index Fund
  $ 456,985  
International Fund
  $ 15,361,436  
 
Certain reclassification, the result of permanent differences between financial statement and income tax reporting requirements, have been made to the components of capital. These reclassifications have no impact on the net assets or net asset value per share of the Funds and are designed to present each Fund’s capital accounts on a tax basis. The following reclassifications have been made to the following Funds for the year ended December 31, 2006:
 
                         
          Accumulated
     Accumulated
  
    Paid-In
     Net Investment
     Net Realized
  
    Capital     Income (Loss)     Gains (Losses)  
 
 
Intermediate Income Fund
    —     $ 297,376     $ (297,376 )
Core Stock Fund
    —       (211,069 )     211,069  
Value Index Fund
    —       (10,956 )     10,956  
International Fund
    —       (19,892 )     19,895  
 
On July 13, 2006, the FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management has determined that the Funds have no uncertain tax positions as of June 30, 2007.

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MMA Praxis Mutual Funds
 
June 30, 2007 (Unaudited)
 
Security Allocation:
The MMA Praxis Mutual Funds invested, as a percentage of net assets, in the following industries as of the period ended June 30, 2007.
 
     
 Intermediate Income Fund
    Percentage of
Security Allocation   Net Assets
 
Freddie Mac   29.8%
Fannie Mae   28.8%
Corporate Bonds   19.2%
Commercial Mortgage Backed Securities   8.3%
Securities Lending Collateral   4.0%
Federal Home Loan Bank   2.9%
Asset Backed Securities   2.3%
Government National Mortgage Assoc.   1.8%
Tennessee Valley Authority   1.3%
Corporate Notes   1.1%
Short Term Investments   1.1%
Mutual Funds   0.9%
Federal Farm Credit Bank   0.7%
Small Business Administration   0.4%
Interest Only Bonds   0.3%
Collateralized Mortgage Obligations   0.2%
Total   103.1%
     
     
     
 Core Stock Fund
    Percentage of
Security Allocation   Net Assets
 
Common Stocks   97.9%
Securities Lending Collateral   10.3%
Corporate Notes   1.2%
Commercial Paper   1.0%
Short Term Investments   0.1%
Total   110.5%
     
     
     
 Value Index Fund
    Percentage of
Security Allocation   Net Assets
 
Common Stocks   99.1%
Securities Lending Collateral   10.3%
Corporate Notes   0.8%
Short Term Investments   0.2%
Total   110.4%
     
     
     
 International Fund
    Percentage of
Security Allocation   Net Assets
 
United Kingdom   15.4%
Japan   15.4%
France   14.4%
Securities Lending Collateral   12.7%
Switzerland   8.8%
Germany   8.5%
Netherlands   4.6%
Spain   4.0%
Norway   3.0%
Hong Kong   2.9%
Italy   2.9%
Singapore   1.6%
Greece   1.5%
Belgium   1.4%
Sweden   1.2%
Finland   1.2%
Canada   1.2%
Corporate Notes - Domestic   1.1%
Australia   1.0%
Brazil   1.0%
Taiwan   1.0%
Ireland   1.0%
Russia   0.8%
Argentina   0.7%
South Korea   0.7%
Israel   0.7%
Mexico   0.4%
Preferred Stock   0.4%
Bermuda   0.2%
Total   109.7%
     
     
     
 Growth Index Fund
    Percentage of
Security Allocation   Net Assets
 
Common Stocks   97.9%
Securities Lending Collateral   3.8%
Short Term Investments   2.0%
Total   103.7%
     
     
     
 Small Cap Fund
    Percentage of
Security Allocation   Net Assets
 
Common Stocks   86.0%
Short Term Investments   12.6%
Securities Lending   48.5%
Total   147.1%

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Additional fund information   

Table of Contents

 
MMA Praxis Mutual Funds
 
Additional fund information, continued
June 30, 2007 (Unaudited)
 
Proxy Voting:
The Adviser and Sub-Adviser are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Adviser and Sub-Adviser use in fulfilling this responsibility and information regarding how those proxies were voted during the twelve month period ended June 30 are available (i) without charge, upon request, by calling (800) 977-2947; and (ii) on the Securities and Exchange Commission’s (“commission’s”) Web site at http://www.sec.gov.
 
Quarterly Portfolio Disclosure:
The Trust files a complete listing of the Schedules of portfolio investments for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s Web site, (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling (800) 977-2947. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
 
The Statement of Additional Information contains more information about the Funds and can be obtained free of charge by calling (800) 977-2947.
 
Expense Comparison:
As a shareholder of the MMA Praxis Mutual Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, reinvested dividends, or other distributions; redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and service 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the MMA Praxis Mutual Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
 
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2007 through June 30, 2007.
 
Actual Expenses:
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

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MMA Praxis Mutual Funds
 
Additional fund information, continued
June 30, 2007 (Unaudited)
 
                                 
    Beginning
     Ending
     Expense Paid
     Expense Ratio
  
    Account Value
     Account Value
     During Period*
     During Period**
  
    1/1/07     06/30/07     1/1/07-06/30/07     1/1/07-06/30/07  
 
 
Intermediate Income Fund
                               
Class A
  $ 1,000.00     $ 1,005.70     $ 4.38       0.88 %
Class B
    1,000.00       1,004.40       6.61       1.33 %
Class I
    1,000.00       1,007.00       3.14       0.63 %
Core Stock Fund
                               
Class A
    1,000.00       1,049.20       7.42       1.46 %
Class B
    1,000.00       1,045.50       10.70       2.11 %
Class I
    1,000.00       1,051.30       5.24       1.03 %
Value Index Fund
                               
Class A
    1,000.00       1,045.70       5.17       1.02 %
Class B
    1,000.00       1,043.60       8.01       1.58 %
Class I
    1,000.00       1,047.30       3.81       0.75 %
Growth Index Fund
                               
Class A
    1,000.00       1,017.00       2.60       1.54 %
Class B
    1,000.00       1,015.00       3.50       2.08 %
Class I
    1,000.00       1,017.00       2.26       1.34 %
International Fund
                               
Class A
    1,000.00       1,091.90       8.97       1.73 %
Class B
    1,000.00       1,088.50       12.32       2.38 %
Class I
    1,000.00       1,094.70       6.39       1.23 %
Small Cap Fund
                               
Class A
    1,000.00       1,029.00       3.49       2.06 %
Class B
    1,000.00       1,028.00       4.59       2.71 %
Class I
    1,000.00       1,029.00       3.14       1.85 %
 
 
* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
 
** Annualized.
 
Hypothetical Example for Comparison Purposes:
The table below provides information about hypothetical account values and hypothetical expenses based on each MMA Praxis Mutual Fund’s expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the

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MMA Praxis Mutual Funds
 
Additional fund information, continued
June 30, 2007 (Unaudited)
 
relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
                                 
    Beginning
     Ending
     Expense Paid
     Expense Ratio
  
    Account Value
     Account Value
     During Period*
     During Period**
  
    1/1/07     06/30/07     1/1/07-06/30/07     1/1/07-06/30/07  
 
 
Intermediate Income Fund
                               
Class A
  $ 1,000.00     $ 1,020.43     $ 4.41       0.88 %
Class B
    1,000.00       1,018.20       6.66       1.33 %
Class I
    1,000.00       1,021.67       3.16       0.63 %
Core Stock Fund
                               
Class A
    1,000.00       1,017.55       7.30       1.46 %
Class B
    1,000.00       1,014.33       10.54       2.11 %
Class I
    1,000.00       1,019.69       5.16       1.03 %
Value Index Fund
                               
Class A
    1,000.00       1,019.74       5.11       1.02 %
Class B
    1,000.00       1,016.96       7.90       1.58 %
Class I
    1,000.00       1,021.08       3.76       0.75 %
Growth Index Fund
                               
Class A
    1,000.00       1,005.78       2.59       1.54 %
Class B
    1,000.00       1,004.88       3.49       2.08 %
Class I
    1,000.00       1,006.12       2.25       1.34 %
International Fund
                               
Class A
    1,000.00       1,016.22       8.65       1.73 %
Class B
    1,000.00       1,012.99       11.88       2.38 %
Class I
    1,000.00       1,018.70       6.16       1.23 %
Small Cap Fund
                               
Class A
    1,000.00       1,004.91       3.45       2.06 %
Class B
    1,000.00       1,003.83       4.54       2.71 %
Class I
    1,000.00       1,005.26       3.10       1.85 %
 
 
* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.
 
** Annualized.
 
INFORMATION FOR SHAREHOLDERS REGARDING APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT WITH MMA CAPITAL MANAGEMENT
At an in-person meeting held on February 19, 2007, the Board of Trustees of the Trust approved the Investment Advisory Agreement between Menno Insurance Service, Inc., d/b/a MMA Capital Management, and each of MMA Praxis Growth Index Fund and MMA Praxis Small Cap Fund, for an initial term. The Trustees requested and received from MMA Capital Management information relating to the Investment Advisory Agreement. They considered information relating to the Investment Advisory Agreement at in-person meetings held on November 20, 2006, February 18, 2007 and February 19, 2007, and at a special telephonic meeting held on January 15, 2007. In concluding that it was in the best interests of the Funds and their shareholders to approve the Investment Advisory Agreement for each Fund, the Board, including a majority of those Trustees who are not “interested persons” of the Funds or MMA Capital Management

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MMA Praxis Mutual Funds
 
Additional fund information, continued
June 30, 2007 (Unaudited)
 
(the “Independent Trustees”) advised by independent legal counsel, gave weight to the following factors, among others:
 
Nature, Quality and Extent of Services
The Trustees discussed the nature, quality and extent of services MMA Capital Management would provide to the Funds. Among other things, the Trustees reviewed their findings regarding MMA Capital Management from the November 20, 2006 meeting in connection with the renewal of the Advisory Agreement for the other MMA Praxis Mutual Funds. The Trustees also reviewed the specific services that MMA Capital Management would provide to the Growth Index Fund and Small Cap Fund, and the resources supporting those services. The Board concluded that it was satisfied with the nature, quality and extent of services to be provided to the Funds by MMA Capital Management.
 
Investment Performance of the Funds and MMA
The Trustees reviewed each Fund’s investment objective and strategies, including its SRI processes and philosophies. The Board concluded that it would monitor investment performance of each Fund once the Funds had commenced investment operations.
 
Costs of Services and Profitability of MMA and Affiliates
The Trustees reviewed information and data regarding the estimated costs of providing the advisory services to the Funds and the estimated profits to be realized by MMA Capital Management and its affiliates from their relationship with the Funds. Representatives of MMA Capital Management addressed the Trustees’ questions regarding guidelines for manager selection, payment of platform fees, revenue sharing arrangements and expense waivers and reimbursements. In their review of the estimated expenses, the Trustees considered MMA Capital Management’s fees, as well as other Fund expenses, such as transfer agent fees, custodial, legal and audit fees. The Trustees also noted the estimated effects of MMA Capital Management’s voluntary expense waivers and expense reimbursements on fee and expense levels. As part of their review, the Trustees considered the expense information by Fund compared to peer group information. The Trustees also reviewed the fee structures and other information provided by MMA Capital Management regarding its services to other clients. The Board concluded that the costs of the services provided to the Funds by MMA Capital Management were fair.
 
Economies of Scale
The Trustees considered the extent to which economies of scale would be realized as the Funds grow and whether the investment advisory fee rates reflect those economies of scale for the benefit of the Funds’ shareholders. MMA Capital Management represented to the Trustees that MMA Capital Management would consider appropriate breakpoints as the Funds grow in size. The Board concluded that asset levels did not justify breakpoints at this time.
 
Other Benefits
The Trustees discussed the extent to which MMA Capital Management and its affiliates might derive other benefits, including soft dollar credits or other similar benefits from MMA Capital Management’s relationship with the Funds. Discussion ensued regarding other potential benefits to MMA Capital Management and its affiliates from their relationship with the Funds, and the Board concluded that such benefits were not material.
 
INFORMATION FOR SHAREHOLDERS REGARDING THE APPROVAL OF THE SUB-INVESTMENT ADVISORY AGREEMENT WITH LUTHER KING CAPITAL MANAGEMENT
At an in-person meeting held on February 19, 2007, the Board of Trustees of the Trust approved the Sub-Investment Advisory Agreement between MMA Capital Management and Luther King Capital Management, with respect to portfolio management of the MMA Praxis Small Cap Fund, for an initial term. The Trustees requested and received from Luther King Capital Management information relating to the Sub-Investment Advisory Agreement. They considered information relating to the Sub-Investment Advisory Agreement at in-

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MMA Praxis Mutual Funds
 
Additional fund information, continued
June 30, 2007 (Unaudited)
 
person meetings held on November 20, 2006, February 18, 2007 and February 19, 2007, and at a special telephonic meeting held on January 15, 2007. In concluding that it was in the best interests of the Small Cap Fund and its shareholders to approve the Sub-Investment Advisory Agreement, the Board, including a majority of the Independent Trustees advised by independent legal counsel, gave weight to the following factors, among others:
 
Nature, Quality and Extent of Services
The Trustees considered the nature, quality and extent of services Luther King Capital Management would provide to the Small Cap Fund. Among other things, the Trustees considered MMA Capital Management’s assessment of Luther King Capital Management’s investment management capabilities based upon due diligence conducted by MMA Capital Management. The Trustees also considered Luther King Capital Management’s portfolio managers, resources, compliance program and best execution practices. The Board concluded that it was satisfied with the nature, quality and extent of services to be provided to the Small Cap Fund by Luther King Capital Management.
 
Investment Performance of the Small Cap Fund and Luther King Capital Management
The Trustees reviewed the Small Cap Fund’s investment objective and strategies, including its SRI processes and philosophies. The Board concluded that it would monitor investment performance of the Small Cap Fund once it had commenced investment operations.
 
Costs of Services and Profitability of Luther King Capital Management and Affiliates
The Trustees considered the costs of the services provided by Luther King Capital Management to the Small Cap Fund. The Trustees discussed the comparative fee information provided by Luther King Capital Management. The Board concluded that the costs of the services to be provided to the Small Cap Fund were fair.
 
Economies of Scale
The Trustees acknowledged Luther King Capital Management’s representation that the contractual fee rate incorporates economies of scale. The Board concluded that the rate is in line with the comparative fee information provided.
 
Other Benefits
The Trustees considered the extent to which Luther King Capital Management or its affiliates would derive other benefits, including soft dollar credits or other similar benefits, from Luther King Capital Management’s relationship with the Small Cap Fund. Discussion then ensued regarding Luther King Capital Management’s soft dollar practices. The Board concluded that Luther King Capital Management did not derive material benefits, other than its sub-advisory fees and traditional soft-dollar benefits, from its relationship with the Small Cap Fund.

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JPMorgan Chase Bank, N.A.
303 Broadway, Suite 900
Cincinnati, OH 45202
 
 
 
 
 
 
 
2060447

 

Table of Contents

Item 2. Code of Ethics.
Not required in semi-annual report filing.
Item 3. Audit Committee Financial Expert.
Not required in semi-annual report filing.
Item 4. Principal Accountant Fees and Services.
Not required in semi-annual report filing.
Item 5. Audit Committee of Listed Companies.
Not applicable.
Item 6. Schedule of Investments.
The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.
Not applicable.
Item 8. Portfolio Managers of Closed-End Funds.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Funds.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report.
(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)   (1)   Code of Ethics. Not required in semi-annual report filing.
(a)   (2)   The certification required by Rule 30a-2 of the Investment Company Act of 1940, as amended (the “1940 Act”) is attached hereto.
(b)     The certification required by Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto.

Table of Contents

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MMA Praxis Mutual Funds                    
By (Signature and Title)
/s/ John L. Liechty          
John L. Liechty
President
Date: August 27, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
/s/ John L. Liechty          
John L. Liechty
President
Date: August 27, 2007
By (Signature and Title)
/s/ Steven T. McCabe          
Steven T. McCabe
Treasurer
Date: August 31, 2007