Steward Funds N-CSRCertified annual shareholder report (management investment company)

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 811-01597

Steward Funds, Inc.

(Exact name of registrant as specified in charter)

15375 Memorial Drive

Suite 200

Houston, Texas 77079

(Address of principal executive offices) (Zip code)

John Marten

Vedder Price P.C.

222 North LaSalle Street

Chicago, Illinois 60601

(Name and address of agent for service)

Registrant’s telephone number, including area code: (713) 260-9000

Date of fiscal year end: April 30

Date of reporting period: April 30, 2024

Item 1. Reports to Stockholders.

  STEWARD FUNDS

 ANNUAL REPORT

TABLE OF CONTENTS

This 2024 Annual Report marks the first time I am writing you in this capacity. It is a privilege to be a part of a firm that continues to combine deep commitment to faith-based values with a focus on investment excellence. At Crossmark, our purpose is to Inspire and Equip our clients to Go Further in aligning their investments with their values. Throughout this year, we have been committed to providing values-based investments that equip our investors with the means to put their Values into Action. This continues to be the core of who we are and what we do.

The U.S. economy avoided a much-anticipated recession in 2023 and made significant progress toward a soft landing. The key surprise was much stronger-than-expected economic growth as the labor market continued to rebalance and inflation continued to fall. In the U.S. and across many parts of the world, inflation declined, approaching but not reaching central bank targets, while importantly (and amazingly) avoiding a major slowing of growth or a pickup in unemployment. As we exited 2023, the risks were more symmetric: the risk of inflation remaining sticky and above target, and the risk of weaker economic activity.

The key economic question for 2024 remains whether central banks can continue the “landing of the plane” (soft landing) without a crash (recession). The consensus view of 2024 is a “Goldilocks” environment of not too hot and not too cold. Expectations include a soft economic landing, a continued decline in inflation towards targets, and double-digit earnings growth. We think that fairy tale is unlikely, meaning either 1) the economy weakens enough for a bumpy ride (perhaps a recession) and earnings fall short (most likely), or 2) the economy remains strong enough to support double digit earnings growth at the risk of little progress on inflation and Fed rate cuts.

Needless to say, so far this year equity markets have done well and Crossmark products have reflected this positive performance. Fixed Income markets have been flattish. Wherever you are invested, we truly appreciate the opportunity to serve your investment needs through our Steward Mutual Funds. We trust our mission of being a faith-based firm serving our clients with values-based products will continue to aid you in achieving your financial objectives in the days and years ahead.

As always, we thank you for trusting Steward Funds/Crossmark Global Investments with your investments.

Sincerely,

Robert C. Doll, CFA

President – Steward Funds, Inc.

CEO/CIO – Crossmark Global Investments, Inc.

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STEWARD COVERED CALL INCOME FUND

Portfolio Management: Paul C. Townsen, Managing Director, and Ryan Caylor, CFA, Head of Research

Positive and Negative Contributors to Performance

With regard to performance attribution for the Fund during the fiscal year ended April 30, 2024, there are several sectors and individual stocks worth highlighting. From a sector allocation standpoint for the stock portfolio, the sectors contributing the most to relative performance against the S&P 500 were financials, healthcare, communication services and information technology. Detracting the most from relative performance were consumer staples, utilities and industrials. Several stocks that contributed the most to relative performance were Broadcom, Nvidia, Advanced Micro Devices, and Eli Lilly. Stocks detracting the most from relative performance were Exelon, Wal-Mart, and Tesla. When considering the values-based screens we apply, the total impact to the Fund by not owning the screened-out companies was a materially positive 178 basis points, with almost all of the negative net impact coming from our embryonic stem cell research screens and abortion-related screens.

Looking Ahead

Given the continued strong start to the year in the broad equity markets, the potential for a pullback has to be on the table. With the consolidation of gains likely, this should be considered healthy for the markets and a probable buying opportunity for investors. The prospect of rate cuts has more than likely been priced into the markets so it is important for the upcoming earnings season to continue to drive the markets higher. We expect some volatility as we head into the summer months which should allow for methodical option trading opportunities that will benefit the Fund.

Principal Investment Strategy

The Fund’s principal investment strategy is to invest in a portfolio of large-cap, dividend-paying, equity securities that are listed on U.S. exchanges and to write (sell) covered call options on those securities with the overall goal of providing options premium income and lowering volatility of the Fund’s portfolio when compared to the broader uncovered large-cap securities market, subject to the limitations of the Fund’s values-based screening policies.

Under normal market circumstances, the Fund will:

Covered call options may be written on the Fund’s equity securities. A call option gives the purchaser of the option the right to buy, and the writer, in this case, the Fund, the obligation to sell, the underlying security at a specified exercise price at any time prior and up to the expiration of the contract.

The covered call strategy used by the Fund is designed to earn extra premium income for the Fund from premiums to moderate the impact of market declines and to reduce the volatility of the Fund’s portfolio. This strategy means that the Fund may be expected to underperform equity markets during periods of sharply rising prices; conversely, by using this strategy, the Fund would tend to outperform equity markets during periods of flat or declining prices due to the Fund’s receipt of premiums from selling the call options.

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STEWARD EQUITY MARKET NEUTRAL FUND

Portfolio Management: Robert C. Doll, CFA, Chief Executive Officer and Chief Investment Officer, and Ryan Caylor, CFA, Head of Research

Positive and Negative Contributors to Performance

Investment performance was strong for the year; our longs were +16.49% and our shorts were up only 9.00%. Particularly positive were returns in industrials (+259 basis points), financials (+150 basis points), information technology (+137 basis points) and consumer discretionary (+117 basis points). This was partially offset by performance in communication services (-144 basis points) and healthcare (-103 basis points). Best longs were Gap, Williams Sonoma, TopBuild, Lam Research, Dick’s Sporting Goods, Deckers Outdoor, Fifth Third Bancorp, Ingersoll Rand and Owens Corning. There were no large long detractors. Best shorts included Constellation Energy, NRG Energy, Natera, Cloudflare, Palantier Technologies, Wayfair, Celsius Holdings and Blue Owl Capital. Worst stocks included agilon health, Ubiquiti, NovoCure, 10x Genomics, Liberty Broadband and ICU Medical.

Current Positioning

Given our cautious view, we continue to favor companies that have reasonable valuations with strong earnings and cash flow profiles and strong earnings predictability and persistence. Our largest net overweights are financials, technology, consumer discretionary and real estate. Our largest net underweights are healthcare, utilities, consumer staples and materials. Our largest net factor bets are pro-earnings quality, management quality and earnings yield. Our largest net factor negative bets are beta and dividend yield.

Looking Ahead

The key economic question for 2024 is whether central banks can continue the “landing of the plane” (soft landing) without a crash (recession). The consensus view of 2024 is a “Goldilocks” environment of not too hot and not too cold. Expectations include a soft economic landing, a continued decline in inflation towards targets, and double-digit earnings growth. We think that fairy tale is unlikely, meaning either 1) the economy weakens enough for a bumpy ride (perhaps a recession) and earnings fall short (most likely), or 2) the economy remains strong enough to support double-digit earnings growth at the risk of little progress on inflation and Fed rate cuts.

Principal Investment Strategy

The Fund pursues its investment objective utilizing a market neutral strategy, the goal of which is to generate absolute returns that are due primarily to stock selection, rather than the returns and direction of the stock market. Under normal market conditions, the Fund invests at least 80% of its assets in equity securities. The Fund implements its market neutral strategy by establishing long and short positions in a diversified portfolio of equity securities, subject to the limitations of the Fund’s values-based screening policies on long positions. Substantially all of the equity securities in which the Fund takes long and short positions will be included in the Russell 1000 Index at the time of purchase. As a result, the Fund will invest significantly in large-capitalization companies.

Portfolio management will invest in long positions that are expected to deliver the overall returns of the stock market, plus additional performance unique to the specific stocks purchased by portfolio management. The short positions selected by portfolio management are expected to deliver the inverse of the overall returns of the stock market, plus additional performance unique to the specific stocks sold short by portfolio management. At any time, the Fund’s net long exposure to the stock market (long market value minus short market value) could range between -20% and 40%.

Portfolio management will select securities using an investment process that combines quantitative techniques, fundamental analysis and risk management. Securities generally are added to the portfolio as long or short positions based both on security rankings provided by multi-factor quantitative models and on fundamental analysis of the securities. In addition, portfolio management will utilize risk management techniques to establish constraints on the amounts invested in individual securities and sectors. Portfolio management generally will decrease or eliminate a short or long position in a security if the security’s model ranking changes significantly or research reveals a significant change in the company’s fundamentals.

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Through its multi-factor quantitative models, portfolio management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. With respect to the rankings provided by the multi-factor quantitative models, the models also include a component for ranking companies using values-based characteristics.

STEWARD GLOBAL EQUITY INCOME FUND

Portfolio Management: Rob Botard, CFA, Managing Director, and Brent Lium, CFA, Managing Director

Positive and Negative Contributors to Performance

The Fund’s allocation at the end of the period was 62% U.S. and 38% international. From a country perspective, the U.S. was the largest contributor to performance with a total return of 12.38%. Taiwan (5.25% of total net assets) was the second largest contributor with a total return of 43.53%. Sweden (0.49% of total net assets) and Hong Kong (0.22% of total net assets) were the only negative contributing countries, with total returns of -15.17% and -12.31% during the period, respectively.

The leading positive stock contributors to performance included Gap Inc. (1.50% of total net assets), Williams-Sonoma Inc. (1.31% of total net assets), and Taiwan Semiconductor Manufacturing Co. (1.99% of total net assets). Total return for these stocks was 102.94%, 88.06%, and 65.24% during the period, respectively. Leading negative stock contributors to performance were Advance Auto Parts Inc. (0.17% of total net assets), C.H. Robinson Worldwide (0.87% of total net assets), and Archer-Daniels-Midland (1.01% of total net assets). Total return for these stocks was -43.08%, -20.68%, and -26.49% for the period, respectively.

Relative to the benchmark, performance was negatively impacted from relative underweights in NVIDIA, Amazon.com, and Meta which rose 211.47%, 65.96%, and 79.19% during the period. These stocks were excluded from the Fund because their dividend yields failed to meet longstanding minimum criteria for the strategy.

For the year ended April 30, 2024, the Fund’s values-based investment policies had a positive impact on performance relative to the Benchmark. For example, the Steward Screening Criteria restricted Pfizer Inc. and Bristol-Myers Squibb from purchase in the Fund due to the companies’ Embryonic Stem Cell Research. Total return during the period for these stocks was -30.67% and -31.36%, respectively. Not owning these underperforming stocks positively impacted Fund performance.

Looking Ahead

The global economic expansion is gradually improving, driven by the resilience of the U.S. economy and strong global corporate profits. This progress, along with relatively easy monetary policy, has propelled domestic and global equity benchmarks to record highs. However, global financial markets are still heavily influenced by fluctuations in Fed rate expectations. U.S. final demand and labor market conditions remain solid, showing little sign of fundamental weakening. Investors should anticipate that persistent underlying inflation will become more challenging as the year progresses. As the economy grows beyond its long-run potential rate and equity prices reach new peaks, our investment strategy will remain grounded in companies with strong, resilient balance sheets that support rising dividends, favorable earnings growth, and robust cash flow.

Principal Investment Strategy

The Fund pursues its investment objective through investment in U.S. and non-U.S. dividend-paying stocks that have demonstrated above-median yield and a positive trend in dividend payouts and favorable earnings growth, subject to the limitations of the Fund’s values-based screening policies. The Fund invests primarily in common stocks of companies that represent a broad spectrum of the global economy and a range of market capitalizations, including large-cap, mid-cap and small-cap. The Fund may also invest in other investment companies and real estate investment trusts. The Fund will invest in dividend-paying securities of issuers throughout the world and the Fund will generally seek to have 30% to 50% of its net assets, and, under normal market conditions, no less than 30% of its net assets, invested in securities of non-U.S. issuers.

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Under normal market conditions, the Fund will invest at least 80% (measured at the time of investment) of the value of its net assets, plus the amount of any borrowings for investment purposes, either directly or through other investment companies, in dividend-paying securities. The Fund will also, under normal market conditions, invest at least 80% (measured at the time of investment) of the value of its net assets, plus the amount of any borrowings for investment purposes, either directly or through other investment companies, in equity securities. The Fund may invest up to 80% of its total assets in securities of non-U.S. issuers and no more than 40% of its total assets in securities of companies in emerging market countries.

STEWARD INTERNATIONAL ENHANCED INDEX FUND

Portfolio Management: Brent Lium, CFA, Managing Director, and Rob Botard, CFA, Managing Director

Positive and Negative Contributors to Performance

From a country perspective, Taiwan (10.06% of total net assets) was the largest positive contributor to performance with a total return of 54.08% over the period, driven by Taiwan Semiconductor Manufacturing Co. (8.49% of total net assets) which was the leading positive stock contributor to performance, rising 65.24%. Netherlands (4.87% of total net assets) was the second largest positive contributor to performance with a total return of 37.15%, led by ASML Holding NV (3.74% of total net assets), which rose

38.33%.

Hong Kong (7.61% of total net assets) was the largest negative contributor to performance with a total return of -9.23% over the period, driven by Alibaba Group Holdings (3.64% of total net assets) which was the leading negative stock contributor to performance, declining 10.44%. Denmark-based company Genmab (0.58% of total net assets) was the second largest negative contributor to performance as the stock’s total return over the period was -32.48%.

The Fund’s values-based investment policies impact performance relative to the Benchmark. For the year ended April 30, 2024, the companies included in the Fund’s values-based screens represented an average of 22.05% of the Benchmark’s market capitalization. Not owning these screened-out companies had a slightly negative net impact on the Fund’s performance relative to the Benchmark. Excluding stocks such as Diageo and British American Tobacco, based on Alcohol and Tobacco restrictions, respectively, benefitted the Fund as the stocks were down 23.64% and 12.89%, respectively. The positive effect of these were offset by stocks restricted based on stem cell research and abortion-related activities, such as Novo Nordisk, Brookfield Corporation, and GlaxoSmithKline, which increased 54.90%, 24.62%, and 19.59%, respectively.

Looking Ahead

Developed markets in Europe and Asia-Pacific are anticipated to see moderate growth driven by resilient consumer spending, stabilizing inflation rates, and accommodative monetary policies. Geopolitical tensions and the potential for regulatory shifts remain key risks. In contrast, emerging markets are poised for robust growth, fueled by strong domestic demand, technological advancements, and significant infrastructure investments. However, they present higher volatility risks due to political dynamics and currency fluctuations. Conflicts around the globe, such as in the Middle East and Ukraine, further compound the uncertainty. We continue to monitor the global macro situation to ensure the DM vs. EM allocation remains consistent with our global outlook going forward.

Principal Investment Strategy

The Fund pursues its objective by seeking to enhance its performance over that of its primary benchmark index by 1) changing the relative weighting in the Fund’s portfolio of equity securities of DM companies and of EM companies, and 2) utilizing computer-aided, quantitative analysis of valuation, growth, dividend yield, industry, and other factors to attempt to compensate for the exclusion of certain index securities due to the Fund’s values-based screening policies.

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Under normal circumstances, the Fund will invest at least 80% of its assets in the securities of companies included in the Fund’s primary benchmark and will invest at least 80% of its assets in the securities of non-U.S. companies. The Fund’s investments are allocated in an attempt to match the characteristics of a blend of the primary benchmark with varied weightings from time to time of a secondary broad-based index that includes only securities of issuers in EM countries.

STEWARD LARGE CAP CORE FUND

Portfolio Management: Robert C. Doll, CFA, Chief Executive Officer and Chief Investment Officer, and Ryan Caylor, CFA, Head of Research

Positive and Negative Contributors to Performance

The largest positive contributors to performance were our overweight in information technology (+63 basis points) and underweight in utilities (+60 basis points). This was partially offset by our underweight in communication services (-55 basis points). Stock selection was positive in healthcare (+65 basis points), financials (+56 basis points) and real estate (+56 basis points). This was more than offset by negative stock selection in industrials (-146 basis points) and information technology (-130 basis points). Best stocks were Williams Sonoma (+82 basis points) and Jabil (+56 basis points). Biggest detractors were our underweights in Nvidia (-122 basis points) and Humana (-86 basis points).

Current Positioning

Given our cautious view, we continue to favor companies that have reasonable valuations with strong earnings and cash flow profiles and strong earnings predictability and persistence. Our largest overweights are consumer discretionary and technology. Our largest underweights are consumer staples, healthcare and energy. Our largest factor bets are pro-profitability and anti-size.

Looking Ahead

The key economic question for 2024 is whether central banks can continue the “landing of the plane” (soft landing) without a crash (recession). The consensus view of 2024 is a “Goldilocks” environment of not too hot and not too cold. Expectations include a soft economic landing, a continued decline in inflation towards targets, and double-digit earnings growth. We think that fairy tale is unlikely, meaning either 1) the economy weakens enough for a bumpy ride (perhaps a recession) and earnings fall short (most likely), or 2) the economy remains strong enough to support double-digit earnings growth at the risk of little progress on inflation and Fed rate cuts.

Principal Investment Strategy

The Fund’s principal investment strategy is to invest in a portfolio of large-cap equity securities, subject to the limitations of the Fund’s values-based screening policies. Under normal market conditions, the Fund invests at least 80% of its assets in the securities of large-cap companies. The Fund’s benchmark index is the Russell 1000 Index. Substantially all of the equity securities in which the Fund invests will be included in the Fund’s benchmark index at the time of purchase.

Portfolio management will select securities using an investment process that combines quantitative techniques, fundamental analysis and risk management. Securities generally are added to the portfolio based both on security rankings provided by multi-factor quantitative models and on fundamental analysis of the securities. In addition, portfolio management will utilize risk management techniques to establish constraints on the amounts invested in individual securities and sectors. Portfolio management will generally sell a security if its model ranking declines significantly or research reveals a significant deterioration of the company’s fundamentals.

Through its multi-factor quantitative models and fundamental analysis, portfolio management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. With respect to the rankings provided by the multi-factor quantitative models, the models also include a component for ranking companies using values-based characteristics.

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STEWARD LARGE CAP GROWTH FUND

Portfolio Management: Robert C. Doll, CFA, Chief Executive Officer and Chief Investment Officer, and Ryan Caylor, CFA, Head of Research

Positive and Negative Contributors to Performance

Performance was aided by stock selection in real estate (+107 basis points) and healthcare (+66 basis points). This was offset by poor stock selection in industrials (-145 basis points) and information technology (-74 basis points). In addition, our underweight in consumer staples (+142 basis points) aided performance. This was offset by our overweight in real estate (-185 basis points) and our underweight in communication services (-68 basis points).

Current Positioning

Given our cautious view, we continue to favor companies that have reasonable valuations with strong earnings and cash flow profiles and strong earnings predictability and persistence. Our largest overweight is real estate. Our largest underweight is communication services. The largest factor bets are pro-management quality and anti-size.

Looking Ahead

The key economic question for 2024 is whether central banks can continue the “landing of the plane” (soft landing) without a crash (recession). The consensus view of 2024 is a “Goldilocks” environment of not too hot and not too cold. Expectations include a soft economic landing, a continued decline in inflation towards targets, and double-digit earnings growth. We think that fairy tale is unlikely, meaning either 1) the economy weakens enough for a bumpy ride (perhaps a recession) and earnings fall short (most likely), or 2) the economy remains strong enough to support double-digit earnings growth at the risk of little progress on inflation and Fed rate cuts.

Principal Investment Strategy

The Fund’s principal investment strategy is to invest in a portfolio of large-cap growth securities, subject to the limitations of the Fund’s values-based screening policies. Under normal market conditions, the Fund invests at least 80% of its assets in securities of large-cap companies. The Fund’s benchmark index is the Russell 1000 Growth Index. Substantially all of the equity securities in which the Fund invests will be included in the Fund’s benchmark index at the time of purchase. The Fund invests primarily in securities that are considered by portfolio management to have potential for earnings or revenue growth.

Portfolio management will select securities using an investment process that combines quantitative techniques, fundamental analysis and risk management. Securities generally are added to the portfolio based both on security rankings provided by multi-factor quantitative models and on fundamental analysis of the securities. In addition, portfolio management will utilize risk management techniques to establish constraints on the amounts invested in individual securities and sectors. Portfolio management will generally sell a security if its model ranking declines significantly or research reveals a significant deterioration of the company’s fundamentals.

Through its multi-factor quantitative models and fundamental analysis, portfolio management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. With respect to the rankings provided by the multi-factor quantitative models, the models also include a component for ranking companies using values-based characteristics.

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STEWARD LARGE CAP VALUE FUND

Portfolio Management: Robert C. Doll, CFA, Chief Executive Officer and Chief Investment Officer, and Ryan Caylor, CFA, Head of Research

Positive and Negative Contributors to Performance

The Fund’s strong performance came from stock selection (+475 basis points) in healthcare (+157 basis points), information technology (+144 basis points), energy (+118 basis points), real estate (+116 basis points) and consumer discretionary (+110 basis points). This was partially offset by poor stock selection in industrials (-185 basis points). Sector weightings were also strong (+195 basis points) including financials (+72 basis points), healthcare (+70 basis points), utilities (+70 basis points) and information technology (+62 basis points).

Current Positioning

Given our cautious view, we continue to favor companies that have reasonable valuations with strong earnings and cash flow profiles and strong earnings predictability and persistence. Our largest overweights are financials and consumer discretionary; our largest underweights are healthcare, utilities and industrials. Our largest factor bets are pro-management quality, profitability and earnings yield.

Looking Ahead

The key economic question for 2024 is whether central banks can continue the “landing of the plane” (soft landing) without a crash (recession). The consensus view of 2024 is a “Goldilocks” environment of not too hot and not too cold. Expectations include a soft economic landing, a continued decline in inflation towards targets, and double-digit earnings growth. We think that fairy tale is unlikely, meaning either 1) the economy weakens enough for a bumpy ride (perhaps a recession) and earnings fall short (most likely), or 2) the economy remains strong enough to support double-digit earnings growth at the risk of little progress on inflation and Fed rate cuts.

Principal Investment Strategy

The Fund’s principal investment strategy is to invest in a portfolio of large-cap value securities, subject to the limitations of the Fund’s values-based screening policies. Under normal market conditions, the Fund invests at least 80% of its assets in securities of large-cap companies. The Fund’s benchmark index is the Russell 1000 Value Index. Substantially all of the equity securities in which the Fund invests will be included in the Fund’s benchmark index at the time of purchase. The Fund invests primarily in securities that are considered by portfolio management to be undervalued with good prospects for capital appreciation.

Portfolio management will select securities using an investment process that combines quantitative techniques, fundamental analysis and risk management. Securities generally are added to the portfolio based both on security rankings provided by multi-factor quantitative models and on fundamental analysis of the securities. In addition, portfolio management will utilize risk management techniques to establish constraints on the amounts invested in individual securities and sectors. Portfolio management will generally sell a security if its model ranking declines significantly or research reveals a significant deterioration of the company’s fundamentals.

Through its multi-factor quantitative models and fundamental analysis, portfolio management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. With respect to the rankings provided by the multi-factor quantitative models, the models also include a component for ranking companies using values-based characteristics.

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STEWARD SELECT BOND FUND

Portfolio Management: Victoria L. Fernandez, CFA, Chief Market Strategist

Positive and Negative Contributors to Performance

During the fiscal year that concluded on April 30, 2024, the markets struggled with what the expected path of interest rates would look like. At the beginning of the 12-month period, the US 10yr Treasury note was around a 3.30% as the Fed continued to hike rates in an effort to thwart higher inflation and contain demand as a strong labor market pushed labor costs higher. Combining inflation concerns with increased Treasury issuance in order to help fund the deficit took US 10yr Treasury yields up to a close of 4.99% on October 19, 2023. This was the high level for the 12-month time period and as we moved into 2024, yields stabilized into a more sustained trading range around 4.40-4.75% as rate cut expectations were priced into yield outlooks. The volatility in yields fed into our investment process with a decision to maintain a shorter duration and decrease our exposure to interest rate volatility.

For the Fund, the duration positioning was the largest positive contributor to outperformance as compared to the Benchmark for the time period. The shorter duration during the move higher in rates helped buffer the market value shifts seen in fixed income securities. In addition, our overweight to the investment-grade corporate allocation was another positive contributor to outperformance. Corporate spreads continued to tighten as overall earnings surprised to the upside during the time period providing the market with the belief that revenues and earnings would continue to uphold market valuations. We did not hold as large of an allocation in short-term Treasury notes as the Benchmark which saw very large yield shifts with coupons moving higher. That provided a stronger income flow from the Treasury allocation for the Benchmark than the Fund.

Looking Ahead

Once the US 10yr Treasury hit the 4.99% level, we anticipated that this level may be the high water mark for the cycle and began to shift our duration positioning from being short to being closer to neutral positioning as compared to the Benchmark, although still slightly short as rate volatility was still expected. We continue to execute on this shift in positioning. The markets are expecting, and have accordingly priced in, 1-2 rate cuts in 2024. This expectation could change as inflation appears to be more sticky than was anticipated, especially in the services sector, which would once again bring volatility to the fixed income markets. We continue to follow our investment process, updating our outlook as data changes which feeds into our decision-making relating to duration targets, yield-curve expectations, sector selection, and security selection.

Principal Investment Strategy

The Fund invests primarily in fixed-income securities, including, but not limited to, corporate bonds, mortgage-backed securities and government and agency bonds and notes, subject to the limitations of the Fund’s values-based screening policies. The Fund’s investments may include U.S. dollar-denominated instruments issued in the U.S. by foreign banks and branches and foreign corporations. Other security types may include fixed-rate preferred stock and municipal bonds. Normally, the Fund will invest at least 80% (measured at the time of investment) of the value of its net assets, plus the amount of any borrowings for investment purposes, either directly or through other investment companies, in these types of instruments.

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STEWARD SMALL CAP GROWTH FUND

Portfolio Management: Brent Lium, CFA, Managing Director

Positive and Negative Contributors to Performance

While there were several macro factors affecting the market, like sticky inflation, international conflicts, increasing fiscal deficit and debt, strengthening U.S. dollar, and higher commodity prices, the overwhelming factor was the Fed’s “higher for longer” interest rate policy. At the end of 2023, the markets were anticipating as many as seven rate cuts in 2024. Today that is closer to one or even zero rate cuts.

Negative contributors to relative performance included Iridium Communicatoins Inc. (“Iridium”), down -53.61%, and Chegg Inc. (“Chegg”), down -50.89%. Iridium, a satellite communications company, had been a strong performer for years with their steadily growing user base. The market was surprised and disappointed when a competitor won a large contract with Apple to provide backup satellite communication direct to phones. We exited the position as we think Iridium’s base business will be pressured as cellular phones with satellite connection will take market share from dedicated satellite communication devices. Chegg is a providor of text books and a subscription based education and learning platform for high school and college students. Their subscription business has come under pressure with the rise of Chat GPT and other AI/chatbot services. While fundamentals have not deterioted nearly as fast as the stock price, the market is essentially anticipating Chegg to go out of business. We exited the position early in the time period.

Super Micro Computer Inc. (“Super Micro”), up 222.70%, Vistra Corp. (“Vistra”), up 196.40%, and RxSight Inc. (“RxSight”), up 76.59%, were our top positive contributors. Super Micro provides equipment for data centers, primarily cooling systems for high end chips including NVIDIA AI chips. They experienced the same explosive growth that NVIDIA did, guiding for revenue to grow more than 100%. Vistra is a primarily Texas based independent power producer that had multiple factors come together during the time period to have strong performance. They hired a new CEO a few years ago that focused the company on improving operations, paying down debt, and repurchasing shares. The market really took notice during the time period, rewarding Vistra with a more appropriate multiple. In addition, they became a derivative data center play with Texas’s relative cheaper power prices. We exited Vistra as its valuation became quite full and its market cap significantly exceeded our small cap mandate. RxSight makes an intraocular lens for cataract surgery that is adjustable post surgery. They are taking share and growing the market for high end cataract replacement lenses, experiencing over 100% revenue growth in 2023. We continue to hold RxSight anticipating years of growth ahead.

Looking Ahead

Economic data continues to be better than expected given the rapid rise in interest rates over the last 18 months or so. We currently appear to be on the glide path for the “soft landing”. While the number of interest rate cuts and timing continue to be pushed out, the next move from the Fed appears to be a rate cut. We will continue to focus on investing companies with visible growth, strong business models, and strong balance sheets as we believe they will be able to outperform over the long term.

Principal Investment Strategy

The Fund’s principal investment strategy is to invest in a portfolio of small-cap growth securities, subject to the limitations of the Fund’s value-based screening policies. Under normal market conditions, the Fund invests at least 80% of its assets in securities of small-cap companies. The Fund’s benchmark is the Russell 2000 Growth Index. The Fund invests primarily in equity securities. The Fund may also invest in other investment companies and up to 15% of its net assets in real estate investment trusts. The Fund invests primarily in securities that are considered by portfolio management to have potential for earnings or revenue growth.

The security selection process is based on a three-step process that includes fundamental, valuation and timeliness analysis. Portfolio management considers selling a security if the investment thesis for owning the security is no longer valid, the stock reaches its price target or timeliness factors indicate that the risk/return characteristics of the stock are viewed in the market as no longer attractive. Portfolio management may consider, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. When making investment decisions, portfolio management will also consider a company’s values-based characteristics.

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STEWARD VALUES-FOCUSED LARGE CAP ENHANCED INDEX FUND

Portfolio Management: Brent Lium, CFA, Managing Director, and Rob Botard, CFA, Managing Director

Positive and Negative Contributors to Performance

The Fund implements a strategy to upweight companies that rank at the top of its values-focused composite rankings. At fiscal year end, the Fund screened out 6.9% of the Benchmark weight; therefore the Fund upweighted 69 companies by 10 basis points each. That is a decrease of 24 companies from a year ago.

Performance of the Fund can also be affected by the Fund’s values-based screening policies. For the year ended April 30, 2024, the values-based screening policies had a positive performance impact on the Fund, adding 159 basis points. Not owning companies such as Pfizer, Inc. (embryonic stem cell research), down 30.67%, Johnson & Johnson (embryonic stem cell research), down 8.97%, and UnitedHealth Group, Inc. (abortion), down 0.19%, added 99 basis points to performance. Conversely, not owning companies such as Leidos Holdings, Inc. (embryonic stem cell research), up 52.56%, GE Aerospace (embryonic stem cell research), up 106.84%, and Viatris, Inc. (embryonic stem cell research), up 29.87%, negatively impacted performance by 25 basis points.

Looking Ahead

Economic data has remained generally stronger than expected giving credence to the narrative that the Fed will guide the economy into a soft landing. The market responded with strong performance over the referenced time period. Future returns will be dependent on the continued strength of the economy without being too strong to trigger more inflation. Inflation has definitely slowed, but remains stubbornly above the Fed’s target.

Principal Investment Strategy

Under normal circumstances, the Fund will invest at least 80% of its assets in the securities of large-cap companies included in the Fund’s benchmark index that pass the Fund’s values-based screens. The Fund is an actively managed fund. The Fund’s investments are allocated in an attempt to match the weightings of the benchmark index, subject to the limitations of the Fund’s values-based screening policies and the reallocation of a portion of each screened security’s weighting in the benchmark index among certain remaining securities of companies that portfolio management believes exhibit positive values, including, but not limited to, the fair treatment of employees, respect for the environment, positive engagement with the communities in which they operate, and responsible governance practices.

STEWARD VALUES-FOCUSED SMALL-MID CAP ENHANCED INDEX FUND

Portfolio Management: Brent Lium, CFA, Managing Director, and Rob Botard, CFA, Managing Director

Positive and Negative Contributors to Performance

The Fund implements a strategy to upweight companies that rank at the top of its values-focused composite rankings. At fiscal year end, the Fund screened out 3.2% of the Benchmark weight; therefore the Fund upweighted 32 companies by 10 basis points each. That is a decrease of 4 companies from a year ago.

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Performance of the Fund can also be affected by the Fund’s values-based screening policies. For the year ended April 30, 2024, the values-based screening policies had a slight positive performance impact on the Fund, adding 20 basis points. Not owning companies such as Medical Properties Trust, Inc. (abortion), down 40.87%, PENN Entertainment Inc. (gambling), down 44.48%, and Churchill Downs Inc. (gambling), down 11.51%, added 27 basis points to performance. Conversely, not owning companies such as Tenet Healthcare Corp. (abortion), up 53.15%, Texas Roadhouse, Inc. (alcohol), up 48.16%, and Casey’s General Stores, Inc. (alcohol, tobacco), up 40.53%, negatively impacted performance by 23 basis points.

Looking Ahead

Hopefully the economic data can continue to be in the near goldilocks range of not too strong and not too weak. Inflation is cooling but remains above the Fed’s target. GDP is slowing but remains strong. Employment is weaker but still strong in absolute terms. Small and mid caps continue to lag their the large cap peers. As conviction in the soft landing grows, perhaps the small and mid caps can catch up to the returns from the last couple years of the large caps.

Principal Investment Strategy

Under normal circumstances, the Fund will invest at least 80% of its assets in the securities of small- to mid-cap companies included in the Fund’s benchmark index that pass the Fund’s values-based screens. The Fund is an actively managed fund. The Fund’s investments are allocated in an attempt to match the weightings of the benchmark index, subject to the limitations of the Fund’s values-based screening policies and the reallocation of a portion of each screened security’s weighting in the benchmark index among certain remaining securities of companies that portfolio management believes exhibit positive values, including, but not limited to, the fair treatment of employees, respect for the environment, positive engagement with the communities in which they operate and responsible governance practices.

13

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Covered Call Income Fund*, the S&P 500 Index**, and the Cboe S&P 500 BuyWrite Index.*** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

14

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Equity Market Neutral Fund* and the ICE BofA 3 Month U.S. Treasury Bill Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

15

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Global Equity Income Fund*, the MSCI World Index**, the S&P Global 1200 Index*** and the MSCI World High Dividend Yield Index.**** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

The primary broad-based securities market index for Steward Global Equity Income Fund has changed from the S&P Global 1200 Index to the MSCI World Index. Fund management believes the MSCI World Index represents the overall equity markets in which the Fund invests. The Fund’s secondary securities market index, the MSCI World High Dividend Yield Index, has not changed.

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

16

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward International Enhanced Index Fund* and the S&P International 700 ADR Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

17

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Large Cap Core Fund* and the Russell 1000 Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

18

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Large Cap Growth Fund* and the Russell 1000 Growth Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

19

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Large Cap Value Fund* and Russell 1000 Value Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

20

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Select Bond Fund* and the Bloomberg U.S. Government/Credit Bond Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

21

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Small Cap Growth Fund* and the Russell 2000 Growth Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

22

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Values-Focused Large Cap Enhanced Index Fund* and the S&P 500 Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

23

STEWARD FUNDS

Comparison of Change in Value of a Hypothetical $100,000 Investment in Institutional Class Shares of the Steward Values-Focused Small-Mid Cap Enhanced Index Fund* and the S&P 1000 Index.** (Unaudited)

Past performance is no guarantee of 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 original cost. To obtain performance information current to the most recent month end, please call 800-262-6631.

Average Annual Total Return as of April 30, 2024

‡ See the August 28, 2023 prospectus for details. The expense ratio is as stated in the current prospectus and may differ from the the expense ratio disclosed in the financial highlights in this report.

24

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND

The table below sets forth the diversification of the Steward Covered Call Income Fund investments by Industry.

See notes to financial statements.

25

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND

See notes to financial statements.

26

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND

See notes to financial statements.

27

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND

See notes to financial statements.

28

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND

Exchange-traded options written as of April 30, 2024 were as follows:

See notes to financial statements.

29

STEWARD FUNDS

SCHEDULE OF PORTFOLIO INVESTMENTS — April 30, 2024

STEWARD COVERED CALL INCOME FUND