New Covenant Growth Fd (NCGFX) N-CSRS Certified semi-annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on March 9, 2011

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 811-09025

New Covenant Funds

(Exact name of registrant as specified in charter)

200 East Twelfth Street, Jeffersonville, IN 47130

(Address of principal executive offices) (Zip code)

U.S. Bancorp Fund Service, LLC
777 E Wisconsin Avenue
Milwaukee, WI 53202

(Name and address of agent for service)

414-765-5138

Registrant’s telephone number, including area code

Date of fiscal year end: June 30

Date of reporting period: December 31, 2010

Item 1. Reports to Stockholders.

table of contents

Shareholder Letter	2
Portfolios of Investments	6
Statements of Assets and Liabilities	15
Statements of Operations	16
Statements of Changes in Net Assets	17
Financial Highlights	19
Notes to Financial Statements	23
Supplemental Data	31

to our shareholders

NEW COVENANT FUNDS
December 31, 2010

Dear Shareholders:

We ended 2010 with more optimism about the economy than when the year began. While it wasn’t a smooth ride, both stock and bond markets moved ahead and the New Covenant Funds posted positive returns.

But optimism is by no means clarity. The fog of uncertainty still swirls around issues like high unemployment, shifting tax policy, deficit spending, continuing foreclosures and truly massive market intervention by the Federal Reserve.

Slow growth in the US remains a concern. Government efforts to rejuvenate the economy have been slow to take hold. After all, bailouts and intervention cannot on their own repair the economic detritus of the 2008 financial crisis. Foreclosure rates remain high as many consumers are still underwater on their mortgages. And many banks continue to struggle to meet capital requirements. We are also concerned about the growing federal deficit — now climbing toward 75% of Gross Domestic Product (GDP) — which raises real risks for the US dollar.

Investors, however, have continued to show remarkable resilience. While 2010 was a bumpy year, investors in equities were generally rewarded. And while many observers predicted higher rates, interest rates (as measured by the 10-year US Treasury Bond) ended the year lower than where they started.

Looking ahead to 2011, we believe the economy will continue to grow slowly. A stronger employment report in January 2011 provided a hopeful note to start the year. An improving economy with rising long-term interest rates can make shorter duration bonds relatively more attractive. We continue to believe an allocation to high-quality intermediate duration bonds is important to a well-balanced portfolio.

Our social investing mandate means that we continue to steward the Funds based on the tenets of the Presbyterian Church (U.S.A.)’s General Assembly Mission Council’s Mission Responsibility Through Investing (MRTI) committee. In addition to companies prohibited based on the MRTI guidelines, our list of prohibited securities also includes companies that have derived 25% or more of their revenue from alcohol, tobacco, and certain companies in the weapons and gambling industries.

We wanted to make you aware of the recent move to reduce fees for New Covenant Funds shareholders. One Compass Advisors (the “Adviser”), has agreed to amend the fee schedule to the Investment Advisory Agreement so as to reduce the annual fee payable to the Adviser from 0.99% to 0.87% of the value of the New Covenant Growth Fund’s average daily net assets and from 0.75% to 0.65% of the value of the New Covenant Income Fund’s average daily net assets. The Adviser and the Board also agreed to terminate the expense limitation agreement with respect to the New Covenant Growth Fund, the New Covenant Income Fund, the New Covenant Balanced Growth Fund and the New Covenant Balanced Income Fund. In addition, the Funds will no longer pay Shareholder Servicing Fees to affiliates of the Adviser. Beginning on January 1, 2011, the adviser contractually reduced its fee. Per our current prospectus supplement dated 12/30/2010, our Total Annual Fund Operating Expenses are 0.99% for New Covenant Growth Fund, 0.77% for New Covenant Income Fund, 1.05% for New Covenant Balanced Growth Fund, and 0.98% for New Covenant Balanced Income Fund. We believe this move will be in the best interest of our shareholders.

With the exception of the New Covenant Income Fund, each of the funds underperformed its benchmark largely because of the allocation to international equities.

							Average Annual			Average Annual			Average Annual
As of December 31, 2010	Aggregate 3 month			1 year 2010			Returns 3 year			Returns 5 year			Returns 10 year
New Covenant Growth Fund		10.57	%		14.08	%		-3.80	%		1.19	%		1.19	%
New Covenant Income Fund		-0.60	%		6.37	%		0.81	%		2.38	%		3.82	%
New Covenant Balanced
Growth Fund		6.36	%		11.19	%		-1.74	%		1.91	%		2.59	%
New Covenant Balanced
Income Fund		3.50	%		9.02	%		-0.70	%		2.11	%		3.16	%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include changes in share price, and include reinvestment of dividends and capital gains. 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. To obtain more current performance information, call 877-835-4531 or visit www.NewCovenantFunds.com.

The New Covenant Growth Fund

The New Covenant Growth Fund gained 14.08% for the one year period ending December 31, 2010. This performance lagged the Standard & Poor’s 500 Index, which rose 15.06% during the same period. The Fund underperformed its benchmark due in part to its international allocation, which was approximately 16% of the Fund’s net asset value at year end. During 2010, the MSCI All Country World Index ex USA rose 11.60%. We are optimistic about stocks and feel equity valuations generally appear to be reasonable relative to bond yields and historic equity multiples.

The Fund remains anchored by the core portfolio, now managed by sub-advisor Brockhouse & Cooper International, Inc. (Brockhouse Cooper). The previous sub-advisor for the core equity portfolio, Wellington Management Company LLP, had given notice that the firm was discontinuing the investment mandate it pursued as a sub-advisor to the Fund. Brockhouse Cooper employs an optimized index strategy which seeks to closely track risk characteristics and performance of the Standard & Poor’s 500 Index while also screening for stocks that meet New Covenant’s criteria for socially responsible investment. We are confident in Brockhouse Cooper’s ability and experience managing these types of portfolios. As of December 31, Brockhouse Cooper’s allocation of the Fund was approximately 52%.

2

to our shareholders

NEW COVENANT FUNDS
December 31, 2010

The Fund’s satellite allocations include actively-managed equity portfolios which are sub-advised by firms that emphasize fundamental research, business analysis, industry analysis, and price discipline.

•  Sound Shore Management, Inc. seeks to capitalize on disparities between large domestic companies’ stock prices and intrinsic values. Sound Shore’s allocation of the Fund was approximately 16% as of December 31, 2010.

•  Santa Barbara Asset Management focuses on shares of large established companies it expects to grow over time. As of December 31, Santa Barbara managed 12% of the Fund.

•  TimesSquare Capital Management, which is responsible for the mid-cap growth satellite portfolio, managed approximately 3% of the Fund as of December 31, 2010.

•  Baillie Gifford Overseas Ltd., headquartered in Edinburgh, Scotland, was added as a new sub-advisor to the Fund during the second quarter of 2010. The firm manages the international satellite allocation, which was approximately 16% of the Fund as of December 31, 2010.

We concur with Baillie Gifford’s conviction that exposure to companies that derive much of their revenues outside of North America and developed Europe may be advantageous for the Fund. At present, Baillie Gifford is particularly interested in companies in emerging economies that depend more on developing local demand than on exports to North America and developed Europe. Baillie Gifford has, in our view, a unique corporate structure of unlimited liability for its 35 partner-owners, which is aligned with its investors’ interests. The firm has a vigorous growth-oriented approach to investment analysis. In addition, we believe their focus on investments outside the US and developed Europe is prudent, as higher growth rates in developing economies could translate to higher earnings growth rates.

We continue to evaluate the overall asset allocation of the Fund to each of its sub-advisors, with the goal of providing shareholders with a core/satellite portfolio that provides competitive performance while following its social mandate.

The New Covenant Income Fund

The New Covenant Income Fund performance was slightly ahead of its benchmark for the one year period ending December 31, 2010, with a return of 6.37% for the Fund compared to 6.15% for the Barclays Capital Intermediate Aggregate Bond Index. The last quarter of 2010 saw some of the gains from earlier in 2010 reversed, for both the Fund and its index. Federal Reserve quantitative easing efforts, which began again in the fourth quarter, caused long term interest rates to rise. Overall, this period of low interest rates and uncertainty — with a general expectation that rates are likely to rise at some point in the future — creates special challenges for bond managers. The Fund’s two sub-advisors, Baird Advisors and Earnest Partners LLC, provided insights into bond-market investments in this economic climate in a special questions-and-answers report posted on the Fund’s website. Visit www.newcovenantfunds.com to read “Making Sense of Low Interest Rates and Quantitative Easing” for this thoughtful exploration.

The Fund is positioned with an average duration that is slightly shorter than its intermediate duration benchmark, in order to help provide a hedge against rising interest rates.

We expressed our high level of confidence in Baird Advisors and Earnest Partners when consolidating the Fund’s sub-advisors from three to two in August 2010. Both sub-advisors focus on high-quality investment-grade bond portfolios.

•  Baird Advisors focuses on high-quality investments constructed in a duration-neutral portfolio relative to the benchmark. Baird’s allocation was approximately 50% as of December 31, 2010.

•  Earnest Partners provides a core bond management mandate, which emphasizes securities that are backed by the full faith and credit of the U.S. Treasury, or are issued by US Government sponsored agencies, but are not Treasury securities. Earnest’s allocation was approximately 50% as of December 31, 2010.

New Covenant Balanced Growth Fund and New Covenant Balanced Income Fund

Our balanced funds are each a mix of the New Covenant Growth Fund and the New Covenant Income Fund. Both Funds finished 2010 with performance slightly below their respective blended benchmarks due in part to the Growth Fund’s allocation to international equities. For the one-year period ending December 31, 2010, the New Covenant Balanced Growth Fund returned 11.19%, whereas its benchmark of S&P 500 Index (60% weighting) blended with the Barclays Capital Intermediate Aggregate Bond Index (40% weighting) returned 11.94% for the same period. For the one-year period ending December 31, 2010, the New Covenant Balanced Income Fund returned 9.02%. For this Fund, the benchmark is a blend of 35% for the S&P 500 Index and 65% for the same Barclays index, and returned 9.68% for the same period.

At present the Balanced Growth Fund’s target allocation is 62.5% for the New Covenant Growth Fund and 37.5% for the New Covenant Income Fund. The Balanced Income Fund’s target allocation is 37.5% for the New Covenant Growth Fund and 62.5% for the New Covenant Income Fund. These target allocations offer shareholders a modest overweighted equity allocation relative to the Funds’ benchmarks.

Long-term objectives still key aspect

2010 was a significant year for both the markets and the New Covenant Funds. Investors showed resilience amidst uncertainty. In the equity market the strong rebound of 2009 led into a volatile but continued upward path in 2010. Although the international equity allocation weighed down overall returns to the Growth Fund and the Balanced Funds during 2010, we feel the added geographic diversification and potential future growth prospects abroad are important to reaching our long-term objectives. Like 2009, the year just ended was an important one for the selection of and allocation to sub-advisors. As a manager of managers, we seek the best mix of investment styles and experience from our sub-advisors as we attempt to provide competitive results while exercising our social investing mandate.

We feel optimistic about the year ahead and, as always, appreciate your trust and thank you for your business.

Sincerely,

 

Paul H. Stropkay, CFA

Senior Vice President

Chief Investment Officer

One Compass Advisors

Please see the following page for more important information.

3

to our shareholders

NEW COVENANT FUNDS
December 31, 2010

Disclosures:

Past performance is not a guarantee of future results.

Opinions expressed are those of the Adviser and are subject to change, not guaranteed, and should be considered investment advice.

The Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged, capitalization-weighted index that measures three performance of 500 large-capitalization stocks representing all major industries. The Barclays Capital U.S. Intermediate Aggregate Bond Index is an unmanaged index of Intermediate U.S. bonds which includes reinvestment of any earnings. It is widely used to measure the overall performance of the Intermediate U.S. bond market. MSCI AC World Index ex USA measures equity market performance in the global developed and emerging markets. It includes 48 developed and emerging market country indices. You cannot invest directly in an index.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.

Credit ratings are assigned to investments by rating agencies such as Standard & Poor’s and Moodys, based on analysis of the credit worthiness of the issuer. The highest rating given is AAA and the lowest is a C.

Portfolio composition is subject to change.

Diversification does not assure a profit or protect against loss in a declining market.

The New Covenant Funds are advised by One Compass Advisors, a subsidiary of the Presbyterian Church (U.S.A.) Foundation. The New Covenant Funds are distributed by New Covenant Funds Distributor, LLC.

Mutual fund investing involves risk. Principal loss is possible. The Growth Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility than larger companies. The Growth Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. The Growth Fund may also use options and futures contracts, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. The investment in options is not suitable for all investors. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Fund may choose not to purchase, or may sell, otherwise profitable investments in companies which have been identified as being in conflict with its established social-witness principles. This means that the Fund may underperform other similar mutual funds that do not consider social-witness principles in their investing.

Must be preceded or accompanied by a prospectus

NCF 14-10-21

4

to our shareholders

NEW COVENANT FUNDS
December 31, 2010

Portfolio Allocation as of 12/31/10 (unaudited) (subject to change)

GROWTH FUND:

	Percentage of
Security Allocation	Market Value
Information Technology		18.6%
Financials		16.0%
Health Care		11.3%
Industrials		11.3%
Energy		11.0%
Consumer Discretionary		10.6%
Consumer Staples		9.3%
Materials		5.8%
Utilities		2.9%
Telecommunication Services		1.7%
Cash Equivalents		1.2%
Other		0.3%
Total		100.0%

INCOME FUND:

	Percentage of
Security Allocation	Market Value
Government Agency/Mortgage Backed Securities		47.1%
Corporates		23.7%
Non-Government Agency/Mortgage Backed		10.3%
Treasuries		7.7%
Asset Backed		6.6%
Other		1.9%
Cash Equivalents		2.7%
Short Term Investments		0.0%
Total		100.0%

BALANCED GROWTH FUND:

	Percentage of
Security Allocation	Market Value
New Covenant Growth Fund		64.5%
New Covenant Income Fund		34.1%
Cash Equivalents		1.4%
Total		100.0%

BALANCED INCOME FUND:

	Percentage of
Security Allocation	Market Value
New Covenant Income Fund		58.6%
New Covenant Growth Fund		38.6%
Cash Equivalents		2.8%
Total		100.0%

5

schedule of investments

NEW COVENANT GROWTH FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares			Value
COMMON STOCKS 98.1%
		Advertising 0.3%
	43,000	Omnicom Group, Inc.		$1,969,400
		Automotive 1.5%
	144,866	Ford Motor Co.(a)		2,432,300
	88,910	General Motors Co.(a)		3,277,223
	3,200	Hyundai Mobis		802,186
	97,381	Johnson Controls, Inc.		3,719,954
	4,333	TRW Automotive Holdings Corp.(a)		228,349
				10,460,012
		Banks 5.2%
	53,628	Banco Santander SA		568,149
	633,052	Bank of America Corp.		8,444,914
	25,244	Bank of New York Mellon Corp.		762,369
	15,228	BB&T Corp.		400,344
	917	Capital One Financial Corp.		39,027
	148,000	DBS Group Holdings Ltd.		1,651,428
	10,967	Fifth Third Bancorp		160,995
	91,700	Hang Seng Bank Ltd.		1,507,727
	131,683	JPMorgan Chase & Co.		5,585,993
	3,874	KeyCorp		34,285
	311	M&T Bank Corp.		27,072
	19,158	Marshall & Ilsley Corp.		132,573
	41,243	PNC Financial Services Group, Inc.		2,504,275
	37,066	Regions Financial Corp.		259,462
	67,848	State Street Corp.		3,144,076
	10,500	SunTrust Banks, Inc.		309,855
	74,035	Svenska Handelsbanken AB		2,365,589
	140,000	United Overseas Bank Ltd.		1,985,429
	249,443	Wells Fargo & Co.		7,730,239
				37,613,801
		Chemicals 2.6%
	1,874	Air Products & Chemicals, Inc.		170,440
	24,672	Cabot Corp.		928,901
	23,459	Celgene Corp.(a)		1,387,365
	68,103	Dow Chem Co./The		2,325,036
	18,898	Eastman Chemical Co.		1,588,944
	47,100	Ecolab, Inc.		2,374,782
	23,254	EI du Pont de Nemours & Co.		1,159,909
	81,900	LyondellBasell Industries N.V.(a)		2,817,360
	34,786	Monsanto Co.		2,422,497
	35,553	Praxair, Inc.		3,394,245
				18,569,479
		Commercial Services 3.2%
	7,200	Alliance Data Systems Corp.(a)(L)		511,416
	289,774	Brambles Ltd.		2,110,228
	2,500	Copart, Inc.(a)		93,375
	51,312	Discover Financial Services		950,811
	139,476	Experian PLC		1,735,296
	40,300	FTI Consulting, Inc.(a)		1,502,384
	5,800	Global Payments, Inc.		268,018
	3,900	IHS, Inc.(a)		313,521
	5,724	International Paper Co.		155,922
	2,800	Manpower, Inc.		175,728
	7,057	Mastercard, Inc.		1,581,544
	2,488	priceline.com, Inc.(a)		994,080
	44,158	Ritchie Bros. Auctioneers, Inc.		1,017,903
	57,643	RR Donnelley & Sons Co.		1,007,023
	121,253	The Capita Group PLC		1,316,693
	15,710	Towers Watson & Co.		817,863
	64,353	Visa, Inc., Class A		4,529,164
	202,131	Western Union Co.		3,753,573
	13,950	Xerox Corp.		160,704
				22,995,246
		Computer Services & Software 7.7%
	5,802	Adobe Systems, Inc.(a)		178,586
	21,100	Amdocs Ltd.(a)		579,617
	28,435	Apple, Inc.(a)		9,171,994
	4,900	Autodesk, Inc.(a)		187,180
	6,284	Automatic Data Processing Inc.		290,823
	35,937	BMC Software, Inc.(a)		1,694,070
	39,400	Check Point Software Technolgoies Ltd.(a)		1,822,644
	173,420	Cisco Systems, Inc.(a)		3,508,287
	291	Citrix System, Inc.(a)		19,907
	96,228	Dell, Inc.(a)		1,303,889
	134,788	EMC Corp.(a)		3,086,645
	64,469	Hewlett Packard Co.		2,714,145
	52,112	International Business Machinces Corp.		7,647,957
	37,700	Intuit, Inc.(a)		1,858,610
	7,200	Lender Processing Services, Inc.		212,544
	14,506	Lexmark International, Inc.(a)		505,099
	16,800	MercadoLibre, Inc.(a)		1,119,720
	3,800	MICROS System, Inc.(a)		166,668
	381,048	Microsoft Corp.		10,638,860
	29,109	NetApp, Inc.(a)		1,599,831
	144,182	Oracle Corp.		4,512,897
	30,596	Red Hat, Inc.(a)		1,396,707
	620	Salesforce.com, Inc.(a)		81,840
	1,343	SanDisk Corp.(a)		66,962
	5,000	Teradata Corp.(a)		205,800
	280,775	The Sage Group PLC		1,196,818
				55,768,100
		Construction & Building Materials 0.6%
	47,472	CRH PLC		983,278
	24,093	EMCOR Group, Inc.(a)		698,215
	27,600	Jacobs Engineering Group, Inc.(a)		1,265,460
	162,373	James Hardie Industries SE(a)		1,125,987
	10,300	Pool Corp.		232,162
	10,200	URS Corp.(a)		424,422
				4,729,524
		Consumer Products 2.6%
	5,566	Colgate Palmolive Co.		447,340
	18,909	Estee Lauder Cos., Inc./The, Class A		1,525,956
	25,500	Herbalife Ltd.		1,743,435
	16,780	Inditex SA		1,256,375
	44,600	Kimberly-Clark Corp.		2,811,584
	29,016	NIKE, Inc., Class B		2,478,547
	2,500	Nintendo Co. Ltd.		733,772
	25,576	Nu Skin Enterprises, Inc., Class A		773,930
	112,552	Procter & Gamble Co.		7,240,470
				19,011,409
		Diversified Operations 1.5%
	30,044	3M Co.		2,592,797
	17,273	Cooper Industries PLC		1,006,843
	332,980	General Electric Co.		6,090,204
	75,700	Mitsui & Co. Ltd.		1,250,323
	7,476	Textron, Inc.		176,733
				11,116,900
		Electronics 2.9%
	43,031	AMETEK, Inc.		1,688,967
	3,900	Dolby Laboratories, Inc.(a)		260,130
	40,560	Emerson Electric Co.		2,318,815
	439,200	Flextronics International Ltd.(a)		3,447,720
	40,200	FLIR Systems, Inc.(a)		1,195,950
	155,215	Hon Hai Precision Industry Co. Ltd.		1,251,030
	4,500	Lam Research Corp.(a)		233,010
	74,305	Premier Farnell PLC		332,368
	3,248	Samsung Electronics Co., Ltd.		2,715,968
	199,780	Taiwan Semiconductor - ADR		2,505,241
	159,962	Texas Instruments, Inc.		5,198,765
				21,147,964
		Energy 3.4%
	240,500	AES Corp.(a)		2,929,290
	7,100	Cameron International Corp.(a)		360,183
	352,000	China Shenhua Energy Co., Ltd.		1,476,328
	1,600	Core Laboratories N.V.(L)		142,480

The accompanying notes are an integral part of these financial statements.

6

schedule of investments (continued)

NEW COVENANT GROWTH FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares			Value
COMMON STOCKS (cont.)
		Energy (cont.)
	9,178	Dominion Resources Inc/VA		$392,084
	26,997	Duke Energy Corp.		480,816
	119,300	El Paso Corp.		1,641,568
	25,267	Entergy Corp.		1,789,662
	96,211	Exelon Corp.		4,006,226
	21,803	Halliburton Co.		890,216
	7,250	National-Oilwell Varco, Inc.		487,562
	47,254	NextEra Energy, Inc.		2,456,735
	41,533	Northeast Utilities		1,324,072
	61,557	PG&E Corp.		2,944,887
	1,099	Progress Energy, Inc.		47,785
	21,604	Southern Co.		825,921
	13,134	Spectra Energy Corp.		328,219
	90,329	Xcel Energy, Inc.		2,127,248
				24,651,282
		Financial Services 6.7%
	29,078	American Express Co.		1,248,028
	28,442	Ameriprise Financial, Inc.		1,636,837
	4,647	Blackrock, Inc.		885,625
	206,960	BM&F Bovespa SA		1,636,979
	1,806,822	Citigroup, Inc.(a)		8,546,268
	7,059	CME Group, Inc.		2,271,233
	78,900	Credit Suisse Group - ADR		3,188,349
	26,046	Deutsche Boerse AG		1,802,925
	436	Franklin Resources, Inc.		48,488
	32,750	Goldman Sachs Group, Inc.		5,507,240
	14,176	Groupe Bruxelles Lambert SA		1,192,115
	102,000	Hong Kong Exchanges & Clearing Ltd.		2,313,529
	7,923	IntercontinentalExchange, Inc.(a)		944,025
	180,778	Invesco Ltd.		4,349,519
	7,100	Lazard Ltd.		280,379
	148,122	Morgan Stanley		4,030,400
	2,280	Northern Trust Corp.		126,335
	1,166	Paychex, Inc.		36,041
	10,100	SEI Investments Co.		240,279
	45,896	SLM Corp.(a)		577,831
	1,686	T Rowe Price Group, Inc.		108,814
	10,100	TD Ameritrade Holding Corp.		191,799
	209,058	The Charles Schwab Corp.		3,576,982
	123,011	U.S. Bancorp		3,317,607
	277	Zions Bancorporation		6,712
				48,064,339
		Food & Beverages 4.7%
	6,175	Archer Daniels Midland Co.		185,744
	35,486	BIM Birlesik Magazalar A/S		1,206,616
	64,000	Bunge Ltd.		4,193,280
	109,215	Coca-Cola Co.		7,183,071
	39,220	Dr Pepper Snapple Group, Inc.		1,378,975
	34,176	General Mills, Inc.		1,216,324
	15,104	Hansen Natural Corp.(a)		789,637
	45,307	Kraft Foods, Inc., Class A		1,427,624
	22,625	Kroger Co.		505,895
	73,354	Nestle SA		4,295,328
	87,653	PepsiCo, Inc.		5,726,370
	18,448	Safeway, Inc.		414,895
	15,625	Starbucks Corp.		502,031
	64,841	Sysco Corp.		1,906,325
	48,701	Woolworths Ltd.		1,343,411
	37,826	X5 Retail Group N.V.(a)		1,749,452
				34,024,978
		Health Care Services 2.5%
	44,604	Aetna, Inc.		1,360,868
	34,831	Bristol Myers Squibb Co.		922,325
	33,793	Celesio AG		839,936
	22,162	Cie Generale d’Optique Essilor International SA		1,426,716
	16,500	DaVita, Inc.(a)		1,146,585
	50,334	Express Scripts, Inc., Class A(a)		2,720,553
	8,300	Lincare Holdings, Inc.		222,689
	26,376	McKesson Corp.		1,856,343
	4,630	Medco Health Solutions, Inc.(a)		283,680
	5,500	Mindray Medical International Ltd.(L)		145,200
	20,813	Stryker Corp.		1,117,658
	68,765	UnitedHealth Group, Inc.		2,483,104
	22,000	Varian Medical Systems, Inc.(a)		1,524,160
	31,909	WellPoint, Inc.(a)		1,814,346
				17,864,163
		Hotels Restaurants & Leisure 0.5%
	28,649	Carnival Corp.		1,321,005
	12,546	Host Hotels & Resorts, Inc.		224,197
	6,212	Marriott International, Inc./DE		258,046
	2,022	Starwood Hotels & Resorts Worldwide, Inc.		122,897
	43,423	Walt Disney Co. Inc.		1,628,797
				3,554,942
		Household Durables 0.5%
	3,600	Mohawk Industries, Inc.(a)		204,336
	49,762	Newell Rubbermaid, Inc.		904,673
	8,830	Pulte Group, Inc.(a)		66,402
	1,800	Stanley Black & Decker, Inc.		120,366
	8,235	Whirlpool Corp.		731,515
	49,432	Wolseley PLC(a)		1,576,830
				3,604,122
		Insurance 3.0%
	8,900	AFLAC, Inc.		502,227
	12,919	Allied World Assurance Co. Holdings Ltd.(L)		767,905
	480	American International Group, Inc.(a)		27,658
	243,507	Amlin PLC		1,552,386
	14,100	Assured Guaranty Ltd.		249,570
	49,126	Berkshire Hathaway Inc.(a)		3,935,484
	4,532	Fairfax Financial Holdings Ltd.		1,864,168
	35,610	Genworth Financial, Inc.(a)		467,915
	29,896	Hartford Financial Services Group, Inc.		791,945
	4,522	Marsh & McLennan Cos., Inc.		123,632
	53,316	Metlife, Inc.		2,369,363
	5,434	Prudential Financial, Inc.		319,030
	9,800	RenaissanceRe Holdings Ltd.		624,162
	39,784	Sampo OYJ		1,065,932
	35,561	The Allstate Corp.		1,133,685
	48,033	The Travelers Cos., Inc.		2,675,918
	5,600	Torchmark Corp.		334,544
	21,247	Transatlantic Holdings, Inc.		1,096,770
	66,139	Unum Group		1,601,887
				21,504,181
		Internet 3.1%
	18,300	Akamai Technologies, Inc.(a)		861,015
	8,836	Amazon.com Inc.(a)		1,590,480
	16,680	Baidu, Inc.(a)		1,610,120
	163,754	eBay, Inc.(a)		4,557,274
	12,350	Google, Inc., Class A(a)		7,335,530
	3,152	NetFlix, Inc.(a)		553,807
	2,046	Rakuten, Inc.		1,713,610
	166,141	Symantec Corp.(a)		2,781,200
	36,914	VeriSign, Inc.(a)		1,205,980
	13,542	Yahoo, Inc.(a)		225,204
				22,434,220
		Leisure Equipment & Products 0.3%
	5,300	Hasbro, Inc.		250,054
	70,101	Mattel, Inc.		1,782,669
				2,032,723
		Machinery & Equipment 1.1%
	34,525	Caterpillar, Inc.		3,233,612
	6,721	Deere & Co.		558,179
	7,794	Joy Global, Inc.		676,129
	37,581	Kone OYJ		2,089,145

The accompanying notes are an integral part of these financial statements.

7

schedule of investments (continued)

NEW COVENANT GROWTH FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares			Value
COMMON STOCKS (cont.)
		Machinery & Equipment (cont.)
	9,100	SMC Corp.		$1,559,071
				8,116,136
		Manufacturing 2.8%
	41,561	Analog Devices, Inc.		1,565,603
	4,000	Church & Dwight Co., Inc.		276,080
	38,720	Danaher Corp.		1,826,422
	39,400	Donaldson, Inc.		2,296,232
	45,749	Dover Corp.		2,674,029
	12,794	GrafTech International Ltd.(a)		253,833
	24,305	Honeywell International, Inc.		1,292,054
	39,393	Illinois Tool Works, Inc.		2,103,586
	29,687	ITT Industries, Inc.		1,546,990
	30,838	Owens-Illinois, Inc.(a)		946,726
	26,434	Parker Hannifin Corp.		2,281,254
	11,528	Precision Castparts Corp.		1,604,813
	7,300	Skyworks Solutions, Inc.(a)		208,999
	5,000	SPX Corp.		357,450
	13,200	Waters Corp.(a)		1,025,772
				20,259,843
		Media 2.8%
	78,101	CBS Corp.		1,487,824
	287,379	Comcast Corp., Class A		6,313,717
	2,649	DIRECTV(a)		105,774
	14,900	Discovery Communications, Inc., Class C(a)		546,681
	26,173	Gannett, Inc.		394,951
	47,039	Naspers Ltd.		2,770,213
	10,900	National CineMedia, Inc.		217,019
	63,646	News Corp., Class A		926,686
	17,858	Time Warner Cable, Inc.		1,179,164
	162,966	Time Warner, Inc.		5,242,616
	6,102	Viacom, Inc., Class B		241,700
	31,300	Virgin Media, Inc.		852,612
				20,278,957
		Medical 4.1%
	29,683	Allergan, Inc.		2,038,332
	51,233	Amgen, Inc.(a)		2,812,692
	60,265	Baxter Inernational, Inc.		3,050,614
	24,500	Becton Dickinson & Co.		2,070,740
	37,557	Boston Scientific Corp.(a)		284,306
	22,400	C.R. Bard, Inc.(L)		2,055,648
	16,127	Cochlear Ltd.		1,326,336
	25,434	Covidien PLC		1,161,316
	10,000	Hologic, Inc.(a)		188,200
	85,415	Johnson & Johnson, Inc.		5,282,918
	29,006	Medtronic, Inc.		1,075,832
	10,668	Novozymes A/S		1,486,010
	44,500	Olympus Corp.		1,347,223
	9,000	ResMed, Inc.(a)(L)		311,760
	98,108	Smith & Nephew PLC		1,034,769
	53,733	St. Jude Medical, Inc.(a)		2,297,086
	31,620	Thermo Fisher Scientific, Inc.(a)		1,750,483
				29,574,265
		Metals & Mining 2.2%
	162	Alcoa, Inc.		2,493
	77,351	Antofagasta PLC		1,944,026
	44,821	BHP Billiton PLC		1,782,638
	93,204	Eldorado Gold Corp.		1,734,159
	17,282	Freeport-McMoRan Copper & Gold, Inc., Class B		2,075,395
	44,134	IAMGOLD Corp.		787,869
	58,103	Newmont Mining Corp.		3,569,267
	20,030	Peabody Energy Corp.		1,281,520
	34,200	Rio Tinto PLC		2,392,241
	2,667	Walter Energy, Inc.		340,949
				15,910,557
		Oil & Gas 10.3%
	26,087	Anadarko Petroleum Corp.		1,986,786
	3,517	Apache Corp.		419,332
	80,596	Baker Hughes, Inc.		4,607,673
	77,025	BG Group PLC		1,556,352
	24,579	Cabot Oil & Gas Corp.		930,315
	25,495	Cenovus Energy, Inc.		853,338
	60,081	Chevron Texaco Corp.		5,482,391
	2,500	Cimarex Energy Co.		221,325
	1,600	Concho Resources, Inc./Midland TX(a)		140,272
	38,420	ConocoPhillips		2,616,402
	15,900	Denbury Resources, Inc.(a)		303,531
	46,074	Devon Energy Corp.		3,617,270
	31,831	Dresser-Rand Group, Inc.(a)		1,355,682
	26,416	EnCana Corp.		772,847
	19,295	EOG Resources, Inc.		1,763,756
	70,400	EQT Corp.		3,156,736
	164,578	Exxon Mobil Corp.		12,033,943
	36,100	Galp Energia SGPS SA		691,772
	31,409	Hess Corp.		2,404,045
	203	Inpex Corp.		1,188,896
	157,443	Marathon Oil Corp.		5,830,114
	64,095	Occidental Petroleum Corp.		6,287,720
	115,655	OGX Petroleo e Gas Participacoes SA(a)		1,393,434
	56,510	Petroleo Brasileiro SA		2,138,338
	41,905	Schlumberger Ltd.		3,499,068
	71,000	Sunoco, Inc.		2,862,010
	402	The Williams Cos., Inc.		9,937
	85,885	Tullow Oil PLC		1,688,509
	61,326	UGI Corp.		1,936,675
	17,992	Ultra Petroleum Corp.(a)		859,478
	87,273	Valero Energy Corp.		2,017,752
	2,600	Whiting Petroleum Corp.(a)		304,694
				74,930,393
		Pharmaceuticals 4.8%
	107,622	Abbott Laboratories		5,156,170
	4,200	Cephalon, Inc.(a)		259,224
	4,967	CF Industries Holdings, Inc.		671,290
	47,500	Chugai Pharmaceutical Co. Ltd.		871,721
	81,649	Eli Lilly & Co.		2,860,981
	35,215	Forest Laboratories, Inc.(a)		1,126,176
	89,219	Gilead Sciences, Inc.(a)		3,233,296
	106,598	Merck & Co., Inc.		3,841,792
	1,800	Mettler-Toledo International, Inc.(a)		272,178
	44,200	Novartis AG - ADR		2,605,590
	473,098	Pfizer, Inc.		8,283,946
	8,682	Roche Holdings AG		1,272,122
	5,600	Shire Pharmaceuticals PLC - ADR		405,328
	54,160	Teva Pharmaceutical Industries Ltd. - ADR		2,823,361
	15,149	Watson Pharmaceuticals, Inc.(a)		782,446
				34,465,621
		Real Estate 0.9%
	596	Apartment Investment & Management Co.		15,401
	629	Boston Properties, Inc.		54,157
	116,000	Cheung Kong Holdings Ltd.		1,789,368
	5,080	Equity Residential		263,906
	37,958	Forest City Enterprises, Inc.(a)		633,519
	4,461	HCP, Inc.		164,120
	2,780	Plum Creek Timber Co, Inc.		104,111
	13,751	ProLogis		198,564
	27,389	PS Business Parks Inc.		1,526,115
	2,955	Public Storage		299,696
	8,429	Simon Property Group Inc.		838,601
	2,359	Vornado Reality Trust		196,576
	15,878	Weyerhaeuser Co.		300,571
				6,384,705

The accompanying notes are an integral part of these financial statements.

8

schedule of investments (continued)

NEW COVENANT GROWTH FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares			Value
COMMON STOCKS (cont.)
		Restaurant 0.6%
	59,340	McDonald’s Corp.		$4,554,938
	4,231	Yum Brands, Inc.		207,531
				4,762,469
		Retail 5.5%
	9,315	Abercrombie & Fitch Co., Class A		536,823
	21,491	Big Lots, Inc.(a)		654,616
	26,427	CFAO SA		1,150,198
	5,100	Coach, Inc.		282,081
	28,000	Costco Wholesale Corp.		2,021,880
	163,284	CVS Caremark Corp.		5,677,385
	8,600	Fast Retailing Co.		1,369,602
	50,933	Gap, Inc.		1,127,657
	48,730	Home Depot, Inc.		1,708,474
	32,276	Kohl’s Corp.(a)		1,753,878
	47,000	Lowe’s Cos., Inc.		1,178,760
	87,261	Massmart Holdings Ltd.		1,943,254
	16,011	Nordstrom, Inc.		678,546
	32,735	Ross Stores, Inc.		2,070,489
	8,574	Staples, Inc.		195,230
	49,866	Target Corp.		2,998,442
	8,216	Tempur Pedic International, Inc.(a)		329,133
	260,306	Tesco PLC		1,724,821
	17,548	The Sherwin-Williams Co.		1,469,645
	4,000	Tiffany & Co.		249,080
	42,137	TJX Cos., Inc.		1,870,461
	15,353	Urban Outfitters, Inc.(a)		549,791
	123,645	Wal-Mart Stores, Inc.		6,668,175
	23,338	Walgreen Co.		909,249
	6,968	Whole Foods Market, Inc.(a)		352,511
				39,470,181
		Schools 0.4%
	66,500	Apollo Group, Inc., Class A(a)		2,626,085
	850	Strayer Education, Inc.(L)		129,387
				2,755,472
		Semiconductor Equipment 1.2%
	32,091	Aixtron		1,183,799
	218,400	Applied Materials, Inc.		3,068,520
	20,802	ASML Holding N.V.		803,359
	9,900	ASML Holding N.V. - ADR		379,566
	10,600	Linear Technology Corp.		366,654
	9,500	Marvell Technology Group Ltd.(a)		176,225
	91,000	Mediatek, Inc.		1,303,054
	42,506	Xilinx, Inc.		1,231,824
				8,513,001
		Technology 2.6%
	70,366	Accenture PLC		3,412,047
	43,200	Amphenol Corp., Class A		2,280,096
	34,800	Canon, Inc.		1,804,508
	1,315	Cognizant Technology Solutions Corp., Class A(a)		96,377
	10,503	Goodrich Corp.		925,000
	110,734	Intel Corp.		2,328,736
	47,037	Juniper Networks, Inc.(a)		1,736,606
	46,142	Maxim Integrated Products, Inc.		1,089,874
	73,671	United Technologies Corp.		5,799,381
				19,472,625
		Telecommunication 3.1%
	10,114	American Tower Corp., Class A(a)		522,287
	209,784	AT&T, Inc.		6,163,454
	34,681	Broadcom Corp.		1,510,358
	20,301	Corning, Inc.		392,215
	57,330	Mobile TeleSystems		1,196,477
	54,632	Motorola, Inc.(a)		495,512
	48,461	NeuStar, Inc., Class A(a)		1,262,409
	132,818	Qualcomm, Inc.		6,573,163
	14,800	SBA Communications Corp., Class A(a)		605,912
	109,914	Sprint Nextel Corp.(a)		464,936
	85,680	Verizon Communications, Inc.		3,065,631
				22,252,354
		Transportation 2.9%
	129	A.P. Moller - Maersk A/S, Class B		1,168,112
	106,545	All America Latina Logistica SA		962,756
	4,500	C.H. Robinson Worldwide, Inc.		360,855
	1,837	CSX Corp.		118,689
	55,935	Delta Air Lines, Inc.(a)		704,781
	63,174	DSV A/S		1,396,430
	39,000	Expeditors International of Washington, Inc.		2,129,400
	375	Fedex Corp.		34,879
	41,415	J.B. Hunt Transport Services, Inc.		1,690,146
	10,600	Kansas City Southern(a)		507,316
	37,161	Norfolk Southern Corp.		2,334,454
	1,029,000	Pacific Basin Shipping Ltd.		684,429
	33,450	Ryanair Holdings PLC		1,028,922
	223,296	Southwest Airlines Co.		2,898,382
	11,970	Union Pacific Corp.		1,109,140
	35,450	United Parcel Service, Inc., Class B		2,572,961
	48,177	Werner Enterprises, Inc.		1,088,800
				20,790,452
		Waste Management 0.0%
	7,421	Waste Management, Inc.		273,612
		Total Common Stocks (Cost $576,162,741)		709,327,428
PREFERRED STOCKS 0.6%
		Commercial Banks 0.2%
	54,260	Itau Unibanco Holding SA		1,302,782
		Metals & Mining 0.4%
	100,000	Vale SA		3,022,000
		Total Preferred Stocks (Cost $3,221,492)		4,324,782
Principal Amount				Value
SHORT TERM INVESTMENTS 1.2%
	$8,458,830	JP Morgan Cash Trade Execution		$8,458,830
		Total Short Term Investments (Cost $8,458,830)		8,458,830
INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES 0.3%
	2,238,195	JP Morgan Prime Money Market		2,238,195
		Total Investments Held As Collateral For Loaned Securities (Cost $2,238,195)		2,238,195
TOTAL INVESTMENTS — 100.2%
(Cost $590,081,258)				$724,349,235
Liabilities in Excess of Other Assets — (0.2%)				(1,128,275	)
NET ASSETS 100.0%				$723,220,960

Percentages are stated as a percent of net assets.

Footnotes:

(a)	Non-income producing security.
(L)	A portion or all of the security is on loan.

Abbreviations:

ADR	American Depository Receipt
PLC	Public Liability Company

The accompanying notes are an integral part of these financial statements.

9

schedule of investments (continued)

NEW COVENANT INCOME FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Principal Amount			Value
ASSET BACKED SECURITIES 6.6%
	$2,000,000	AEP Texas Central Transition Funding LLC 2006-2 5.170%, 01/01/2018		$2,235,029
	1,394,000	American Express Credit 2006-1 A 0.291%, 12/15/2013		1,393,310
	750,000	Atlantic City Electric 2002-1 A-3 4.910%, 07/20/2017		815,464
	550,000	Bayview Financial Trust 2007-A 6.205%, 05/28/2037		545,865
	2,039,000	CenterPoint Energy Transition Bond Co. 2005-A3 5.090%, 08/01/2015		2,222,583
	934,184	Centex Home Equity Trust 2005-C 5.048%, 06/25/2035		927,524
	2,200,000	Chase Issuance Trust 2006-4A 0.281%, 10/15/2013		2,197,102
	2,200,000	Citibank Credit Card Issuance Trust 2004-A7 0.374%, 11/25/2013		2,196,871
	3,500,000	Citibank Credit Card Issuance Trust 2006-A4 5.450%, 05/10/2013		3,561,647
	3,500,000	Citibank Credit Card Issuance Trust 2009-A2 1.811%, 05/15/2014		3,562,335
	2,250,000	Consumers Funding LLC 2001-1 5.760%, 10/20/2016		2,553,110
	511,885	Continental Airlines 2000-2 7.707%, 4/2/2021		570,752
	642,347	Countrywide Asset-Backed Certificates 2005-1 5.030%, 07/25/2035		640,882
	1,700,000	MBNA Master Credit Card Master Note Trust 2002-3A 0.516%, 09/15/2014		1,700,707
	1,898,907	Union Pacific Raildroad Co 2004-1 5.404%, 07/02/2025		2,037,642
	984,297	Union Pacific Railroad Co 2002-1 6.061%, 01/17/2023		1,096,378
		Total Asset Backed Securities (Cost $28,218,106)		28,257,201
CORPORATE BONDS 23.7%
	692,000	Aegon NV 4.750%, 06/01/2013		724,741
		Allied Waste North America, Inc.
	1,000,000	7.125%, 05/15/2016		1,059,928
	675,000	6.875%, 06/01/2017		743,469
	600,000	America Movil SAB De CV 5.500%, 03/01/2014		651,760
	850,000	American Express Co. 8.125%, 05/20/2019		1,059,257
	1,150,000	American Water Capital Corp. 6.085%, 10/15/2017		1,291,874
	800,000	ANZ National Int’l LTD/London 3.125%, 08/10/2015 (Acquired 08/03/2010, Cost $799,336)(a)		796,558
	700,000	Arcelormittal Sa Luxembourg 9.850%, 06/01/2019		886,010
	1,000,000	Arden Realty LP 5.250%, 03/01/2015		1,053,934
	1,000,000	AT&T Wireless Services, Inc. 8.125%, 05/01/2012		1,092,733
	1,000,000	AT&T, Inc. 4.850%, 02/15/2014		1,082,192
	550,000	Bank of America Funding Corp. 7.625%, 06/01/2019		634,295
	600,000	BB&T Corp. 6.850%, 04/30/2019		692,313
	375,000	BlackRock, Inc. 2.250%, 12/10/2012		383,706
	1,441,211	Burlington Northern and Santa Fe Railway Co. 2002-2 5.140%, 01/15/2021		1,535,268
	806,696	Burlington Northern and Santa Fe Railway Co. 2005-3 4.830%, 01/15/2023		867,502
	931,748	Cal Dive International, Inc. 4.930%, 02/01/2027		971,925
	1,225,800	Canal Barge Co., Inc. 4.500%, 11/12/2034		1,284,592
	2,800,000	Carolina Power & Light Co. 6.500%, 07/15/2012		3,030,978
	800,000	CBS Corp. 8.875%, 05/15/2019		1,008,025
	500,000	Citigroup, Inc. 6.000%, 12/13/2013		546,738
	1,250,000	6.125%, 11/21/2017		1,371,794
	403,000	5.375%, 08/09/2020		419,504
	500,000	CNA Financial Corp. 5.875%, 08/15/2020		498,741
		Commonwealth Edison Co.
	475,000	5.400%, 12/15/2011		495,547
	1,750,000	6.150%, 09/15/2017		1,998,952
	1,424,371	Continental Airlines 1999-1 6.545%, 02/02/2019		1,509,833
	1,000,000	Cox Communications, Inc.
		5.450%, 12/15/2014		1,101,859
	1,310,686	CSX Transportation, Inc. 6.251%, 01/15/2023		1,459,190
	1,801,695	CVS Caremark Corp. 6.036%, 12/10/2028		1,852,908
	360,000	Dartmouth College 4.750%, 06/01/2019		389,110
	1,000,000	DCP Midstream LLC 6.875%, 02/01/2011		1,004,381
	1,950,000	Delta Air Lines 2010-1 A
		6.200%, 07/02/2018		2,071,875
	700,000	DIRECTV Holdings LLC
		7.625%, 05/15/2016		776,986
		Dominion Resources Inc/VA
	1,000,000	6.250%, 06/30/2012		1,075,040
	1,500,000	6.300%, 09/30/2066		1,462,755
	1,000,000	Energy Transfer Partners LP
		5.950%, 02/01/2015		1,097,916
	500,000	Entergy Mississippi, Inc.
		4.650%, 05/01/2011		504,797
	750,000	Enterprise Products Operating LLC
		7.625%, 02/15/2012		799,751
	1,578,129	FedEx Corp. 1998-1 6.720%, 01/15/2022		1,725,896
	2,700,000	Fifth Third Bancorp 6.250%, 05/01/2013		2,928,055
	2,500,000	General Electric Capital Corp.
		6.000%, 08/07/2019		2,786,205
	1,820,000	Global Industries Ltd. 7.710%, 02/15/2025		2,127,937
		Goldman Sachs Group, Inc.
	647,000	5.350%, 01/15/2016		695,906
	1,000,000	5.950%, 01/18/2018		1,086,450
	1,000,000	Home Depot, Inc. 5.400%, 03/01/2016		1,121,878
	1,050,000	HSBC Finance Corp. 6.750%, 05/15/2011		1,072,909
	1,500,000	ING Bank NV 1.103%, 03/30/2012 (Acquired 09/15/2010, Cost $1,501,039)(a)		1,495,368
		JP Morgan Chase & Co.
	1,500,000	2.125%, 06/22/2012		1,534,044
	1,100,000	5.750%, 01/02/2013		1,192,478
	650,000	Kookmin Bank 7.250%, 05/14/2014 (Acquired 08/24/2009, Cost $688,693)(a)		734,462
	215,000	Korea Electric Power Corp.
		7.750%, 04/01/2013		240,226
	600,000	Kraft Foods, Inc. 4.125%, 02/09/2016		630,555
	1,150,000	Marathon Oil Corp. 6.500%, 02/15/2014		1,295,502
		Marsh & McLennan Cos., Inc.
	1,000,000	6.250%, 03/15/2012		1,043,550
	300,000	4.850%, 02/15/2013		313,670
	1,432,000	Matson Navigation Co., Inc.
		5.337%, 09/04/2028		1,531,070
		Merrill Lynch & Co.
	1,000,000	6.050%, 08/15/2012		1,059,308
	590,000	6.875%, 04/25/2018		646,606
	1,000,000	MetLife, Inc. 5.000%, 06/15/2015		1,084,089
	800,000	Metropolitan Life Global Funding
		5.125%, 04/10/2013 (Acquired 06/26/2009 and 08/05/2010, Cost $827,461)(a)		861,838
		Morgan Stanley
	1,000,000	5.625%, 01/09/2012		1,044,402
	1,100,000	1.950%, 06/20/2012		1,123,149
	535,000	National Australia Bank Ltd.
		3.750%, 03/02/2015 (Acquired 02/23/2010, Cost $534,904)(a)		553,825
		National Rural Utility Corp.
	1,825,000	5.450%, 02/01/2018		2,018,740
	650,000	10.375%, 11/01/2018		897,924
	400,000	Nationsbank Corp. 10.200%, 07/15/2015		474,333

The accompanying notes are an integral part of these financial statements.

10

schedule of investments (continued)

NEW COVENANT INCOME FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Principal Amount			Value
CORPORATE BONDS (cont.)
	$600,000	Pemex Finance Ltd. 10.610%, 08/15/2017		$723,686
	802,122	Petrodrill Five Ltd. 4.390%, 04/15/2016		841,541
	1,145,889	Petrodrill Four Ltd. 4.240%, 01/15/2016		1,201,526
	500,000	Plum Creek Timberlands LP
		5.875%, 11/15/2015		538,821
		PNC Funding Corp.
	1,025,000	5.500%, 09/28/2012		1,093,950
	510,000	5.125%, 02/08/2020		532,534
	1,350,000	Pooled Funding Trust I
		2.740%, 02/15/2012 (Acquired 12/08/2009, Cost $1,370,366)(a)		1,375,032
	600,000	Principal Life Global Funding I
		6.250%, 02/15/2012 (Acquired 08/25/2009, Cost $615,996)(a)		626,329
	750,000	Prudential Financial Inc.
		5.100%, 09/20/2014		806,308
	750,000	Prudential Holdings LLC
		8.695%, 12/18/2023 (Acquired 11/09/2009, Cost $823,336)(a)		895,427
	750,000	PSEG Power LLC 6.950%, 06/01/2012		808,894
	750,000	Rio Tinto Finance USA Ltd.
		5.200%, 11/02/2040		738,101
	1,200,000	Santander US Debt SA Unipersonal
		2.991%, 10/07/2013 (Acquired 09/27/2010, Cost $1,200,000)(a)		1,166,525
	800,000	Sumitomo Mitsui Banking Corp.
		2.150%, 07/22/2013 (Acquired 07/14/2010, Cost $799,696)(a)		811,138
	1,200,000	SunTrust Banks, Inc. 3.000%, 11/16/2011		1,227,569
	816,000	TCI Communications, Inc.
		8.750%, 08/01/2015		1,005,381
	718,000	Teck Resources Ltd. 10.250%, 05/15/2016		889,475
	875,000	Telecom Italia Capital SA
		5.250%, 10/01/2015		896,809
	750,000	Time Warner Cable, Inc.
		5.000%, 02/01/2020		773,257
		Time Warner, Inc.
	915,000	5.875%, 11/15/2016		1,034,072
	850,000	4.700%, 01/15/2021		867,166
	775,000	UFJ Finance Aruba AEC
		6.750%, 07/15/2013		864,713
	1,500,000	USB Capital IX 6.189%, 10/29/2049		1,170,000
	1,032,000	Verizon Communications, Inc.
		5.875%, 01/17/2012		1,080,923
	1,877,000	Vessel Management Services, Inc.
		5.125%, 04/16/2035		1,966,467
	1,000,000	Vodafone Group PLC 5.625%, 02/27/2017		1,117,811
	300,000	Volkswagen International Finance NV
		1.625%, 08/12/2013 (Acquired 11/05/2010, Cost $303,348)(a)		300,037
	900,000	Wells Fargo & Co. 5.625%, 12/11/2017		997,908
	850,000	Westpac Banking Corp.
		4.200%, 02/27/2015		892,969
	500,000	Xstrata Canada Corp. 7.350%, 06/05/2012		535,761
		Total Corporate Bonds (Cost $98,977,774)		102,389,242
NON-AGENCY MORTGAGE BACKED SECURITIES 10.3%
	904,913	American Home Mortgage Investment Trust 2005-1 7A1 2.457%, 06/25/2045		862,163
	1,310,000	Banc of America Commercial Mortgage 2004-3 A5 5.412%, 06/10/2039		1,401,346
	4,215,000	Banc of America Commercial Mortgage 2006-3 5.872%, 07/10/2044		4,093,674
	5,235,000	Banc of America Commercial Mortgage 2006-4 5.675%, 07/10/2046		5,283,679
	700,000	Banc of America Commercial Mortgage 2007-1 5.451%, 01/15/2049		731,343
	403,000	Banc of America Commercial Mortgage 2007-1 A3 5.449%, 01/15/2049		420,067
	1,470,000	Bear Stearns Commercial Mortgage Securites 2007-PWR18
		6.205%, 06/13/2050		1,267,296
	1,596,000	Citigroup Commercial Mortgage Trust 2008-C7 6.10%, 12/10/2049		1,359,488
	1,950,000	Citigroup/Deutsche Bank Commercial Mortgage Trust A4 5.397%, 07/15/2044		2,100,955
	2,350,000	Commercial Mortgage Pass Through Certificate 2005-C6 5.116%, 06/10/2044		2,517,663
	1,304,080	Countrywide Alternative Loan Trust 2003-20CB 5.500%, 10/25/2033		1,373,813
	1,205,000	Credit Suisse Mortgage Capital Certificate 2006-C1 AM 5.539%, 02/15/2039		1,222,423
	2,386,560	Deutsche ALT-A Securities, Inc. Mortgage Loan Trust 005-3 5A5 5.250%, 06/25/2035		2,246,605
	1,497,895	First Union National Bank Commercial Mortgage 2001-C4 A-2
		6.223%, 12/12/2033		1,535,381
	1,370,000	GE Capital Commercial Mortgage Corp. 2004-C1 4.596%, 11/10/2038		1,433,233
	1,230,000	GMAC Commercial Mortgage Securities, Inc. 2004-C2 A4 5.301%, 08/10/2038		1,310,425
	550,000	JP Morgan Chase Commerical Mortgage Securities Corp. 2006-CIBC15 A4
		5.814%, 06/12/2043		590,418
	2,310,000	JP Morgan Chase Commerical Mortgage Securities Corp.2005-cibc12 A-4
		4.895%, 09/12/2037		2,449,190
	3,770,000	LB-UBS Commercial Morgage Trust 2006-C6 AM 5.413%, 09/15/2039		3,825,389
	492,230	MASTR Alernative Loans Trust 2004-2 4A1 5.000%, 02/25/2019		496,977
	1,152,551	MASTR Reperforming Loan Trust 2006-2 1A1 5.521%, 05/25/2036 (Acquired 03/14/2007, Cost $1,157,820)(a)		1,069,687
	144,775	Morgan Stanley Dean Witter Capital 1 2001-TOP1 A4 6.660%, 02/15/2033		144,696
	1,300,000	NCUA Guaranteed Notes Trust 2010-C1
		2.900%, 10/29/2020		1,266,002
	637,162	Residential Accredit Loans, Inc. 2004-QS5 A1 4.743%, 04/25/2034		631,761
	301,480	Residential Asset Securitization Trust 2004-IP2 5.123%, 12/25/2034		281,185
	884,586	Structured Adjustable Rate Mortgage Loan Trust 2004-3AC A2 2.706%, 03/25/2034		895,721
	2,075,404	TBW Morgage Backed Pass-Through Certificates 2006-2 7A1 7.000%, 07/25/2036		600,295
	1,385,000	Wachovia Bank Commercial Mortgage Trust 2004-C12 A4 5.305%, 07/15/2041		1,492,909
	1,500,000	Wachovia Bank Commercial Mortgage Trust 2005-C22 5.270%, 12/15/2044		1,609,831
		Total Non-Agency Mortgage Backed Securities(Cost $44,900,601)		44,513,615
US GOVERNMENT AGENCIES 47.1%
		Fannie Mae
	2,598,810	6.280%, 08/01/2011		2,621,358
	2,364,820	6.125%, 10/01/2011		2,394,407
	1,099,273	5.867%, 11/01/2011		1,103,686
	4,109,925	6.112%, 02/01/2012		4,259,330
	1,283,000	1.250%, 08/20/2013		1,292,216
	564,671	5.500%, 05/25/2014		575,404
	450,465	6.500%, 08/01/2017		492,977
	1,554,555	5.000%, 01/01/2021		1,664,831
	843,388	4.500%, 09/25/2024		879,792
	1,559,162	4.000%, 06/01/2025		1,612,271
	855,000	5.000%, 03/25/2032		913,596
	459,239	4.500%, 07/25/2033		473,722
	4,935,000	5.000%, 04/25/2034		5,297,057
	3,949,081	5.500%, 09/01/2034		4,251,155

The accompanying notes are an integral part of these financial statements.

11

schedule of investments (continued)

NEW COVENANT INCOME FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Principal Amount			Value
US GOVERNMENT AGENCIES (cont.)
	$2,491,387	5.500%, 12/25/2034		$2,746,859
	2,414,985	5.500%, 02/01/2035		2,599,712
	1,293,572	5.000%, 06/01/2035		1,366,733
	6,400,005	5.000%, 07/01/2035		6,761,973
	2,133,624	5.000%, 11/01/2035		2,252,963
	398,289	5.517%, 01/01/2036		424,565
	2,410,226	5.000%, 02/01/2036		2,545,036
	3,405,666	5.505%, 03/01/2036		3,596,153
	379,118	5.480%, 03/01/2036		405,188
	3,172,992	5.500%, 04/01/2036		3,412,726
	1,073,907	6.000%, 07/01/2037		1,168,756
	1,328,226	6.000%, 09/01/2037		1,445,537
	1,398,251	5.000%, 03/01/2038		1,471,355
	1,138,997	5.500%, 05/01/2038		1,219,536
	2,425,236	5.500%, 06/01/2038		2,597,105
	930,053	5.500%, 08/01/2038		995,818
	1,023,278	6.000%, 11/01/2038		1,113,336
	1,219,409	4.500%, 03/01/2039		1,253,397
	1,346,673	4.500%, 03/01/2040		1,383,999
	1,085,477	5.000%, 03/01/2040		1,142,120
	3,704,077	5.000%, 06/01/2040		3,897,365
	3,659,435	4.000%, 08/01/2040		3,645,196
	1,227,623	4.500%, 08/01/2040		1,261,649
	2,294,809	5.900%, 07/25/2042		2,536,671
				79,075,550
		Freddie Mac
	2,000,000	0.196%, 05/04/2011		2,001,042
	1,450,000	1.125%, 07/27/2012		1,463,627
	558,069	4.500%, 07/15/2016		568,599
	2,186,135	6.000%, 01/15/2017		2,314,470
	2,540,498	5.000%, 02/15/2020		2,606,926
	1,628,631	5.000%, 12/01/2020		1,735,000
	521,954	6.000%, 12/15/2021		542,787
	989,820	5.000%, 05/01/2022		1,045,807
	812,626	5.000%, 04/01/2024		858,590
	1,230,000	5.000%, 03/15/2032		1,307,433
	1,452,341	5.500%, 12/01/2036		1,552,475
	281,823	5.000%, 08/01/2038		295,821
	1,103,684	5.500%, 08/01/2038		1,177,365
	1,285,387	5.500%, 11/01/2038		1,371,199
	945,789	5.000%, 03/01/2039		992,767
	2,058,300	5.000%, 02/01/2040		2,160,333
	17,326,783	4.500%, 08/01/2040		17,777,244
	481,723	4.000%, 09/01/2040		478,870
				40,250,355
		Federal Home Loan Bank
	1,000,000	0.875%, 08/22/2012		1,005,382
		Ginnie Mae
	2,355,000	4.666%, 07/16/2031		2,540,045
	2,024,046	4.430%, 04/16/2034		2,108,454
	1,366,684	3.536%, 09/16/2035		1,432,121
	1,503,376	4.500%, 04/20/2036		1,594,105
	460,947	5.500%, 02/20/2037		496,741
	1,736,036	4.500%, 07/20/2038		1,805,058
	546,256	5.500%, 07/20/2038		588,576
	2,108,456	4.000%, 09/20/2038		2,203,278
	580,936	5.000%, 12/20/2038		610,041
	1,513,727	5.500%, 01/15/2039		1,637,656
	1,430,853	5.000%, 03/15/2039		1,522,438
	1,925,000	3.489%, 03/16/2039		1,976,503
	687,157	5.000%, 03/20/2039		721,584
	2,059,368	3.853%, 02/16/2040		2,173,537
	4,244,754	4.500%, 05/20/2040		4,414,074
	1,182,605	4.930%, 11/16/2044		1,253,961
				27,078,172
		Small Business Administration
	1,861,621	5.459%, 02/10/2017		2,013,612
	873,580	5.250%, 09/01/2017		937,662
	923,022	4.727%, 02/10/2019		961,145
	1,226,015	4.620%, 03/01/2019		1,289,186
	1,214,105	3.880%, 03/10/2019		1,280,080
	814,070	7.300%, 08/01/2019		901,315
	909,389	7.300%, 09/01/2019		1,007,733
	687,473	7.060%, 11/01/2019		760,351
	1,069,158	5.310%, 08/01/2022		1,142,295
	1,219,792	5.240%, 08/01/2023		1,293,820
	1,833,429	4.890%, 12/01/2023		1,968,335
	864,271	4.720%, 02/01/2024		916,445
	1,034,975	4.770%, 04/01/2024		1,098,451
	1,282,407	5.180%, 05/01/2024		1,369,410
	1,946,240	5.170%, 08/01/2024		2,088,132
	1,505,292	4.880%, 11/01/2024		1,602,411
	1,821,864	4.625%, 02/01/2025		1,927,897
	1,177,463	5.090%, 10/01/2025		1,262,486
	671,177	5.350%, 02/01/2026		725,517
	2,144,641	5.570%, 03/01/2026		2,317,251
	1,376,865	5.870%, 05/01/2026		1,499,893
	846,810	5.370%, 10/01/2026		916,661
	1,504,707	5.120%, 12/01/2026		1,616,344
	1,428,428	5.320%, 01/01/2027		1,535,283
	2,204,024	5.230%, 03/01/2027		2,366,372
	1,168,665	5.490%, 03/01/2028		1,257,786
	2,423,329	5.370%, 04/01/2028		2,628,682
	2,134,873	5.490%, 05/01/2028		2,307,682
	1,939,069	5.870%, 07/01/2028		2,076,513
	992,526	5.600%, 09/01/2028		1,072,524
	1,738,461	4.760%, 02/01/2029		1,833,287
	1,682,834	4.660%, 03/01/2029		1,762,337
	1,151,251	4.310%, 04/01/2029		1,198,171
	1,986,183	4.950%, 06/01/2029		2,084,112
	2,289,831	4.300%, 07/01/2029		2,383,049
	2,260,080	4.200%, 09/01/2029		2,346,654
				55,748,884
		Total US Government Agencies (Cost $199,217,870)		203,158,343
OTHER AGENCY SECURITIES 0.8%
	1,250,000	Federal Farm Credit Bank
		3.000%, 09/22/2014		1,318,490
		Private Export Funding Corp.
	800,000	4.550%, 05/15/2015		885,139
	1,250,000	5.450%, 09/15/2017		1,428,980
		Total Other Agency Securities (Cost $3,478,678)		3,632,609
MUNICIPAL BONDS 0.8%
	1,500,000	Dallas Indepdendent School District
		4.950%, 02/15/2022		1,488,540
	1,250,000	New York State City Transitional Finance Authority 4.466%, 08/01/2018		1,243,300
	500,000	New York State Housing Finance Agency
		4.911%, 03/15/2019		514,615
		Total Municipal Bonds (Cost $3,264,932)		3,246,455
U.S. TREASURY OBLIGATIONS 7.7%
	11,400,000	U.S. Treasury Bond 6.250%, 08/15/2023		14,330,153
		U.S. Treasury Note
	9,000,000	1.125%, 12/15/2012		9,093,870
	9,675,000	2.375%, 03/31/2016		9,798,966
		Total U.S. Treasury Obligations (Cost $32,580,872)		33,222,989

The accompanying notes are an integral part of these financial statements.

12

schedule of investments (continued)

NEW COVENANT INCOME FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Principal Amount			Value
SHORT TERM INVESTMENTS 2.7%
		Cash Equivalent
	$11,669,492	JP Morgan Cash Trade Execution		$11,669,492
		Total Short Term Investments (Cost $11,669,491)		11,669,492
TOTAL INVESTMENTS — 99.7%
(Cost $422,308,324)				$430,089,946
Other Assets in Excess of Liabilities — 0.3%				1,211,004
NET ASSETS — 100.0%				$431,300,950

Percentages are stated as a percent of net assets.

Footnote:

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933 or otherwise restricted as to resale. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. The Adviser, using procedures approved by the Board of Trustees, has deemed these securities to be liquid.

Abbreviations:

LP	Limited Partnership
PLC	Public Liability Company

The accompanying notes are an integral part of these financial statements.

13

schedule of investments (continued)

NEW COVENANT BALANCED GROWTH FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares or
Principal Amount			Value
INVESTMENT COMPANIES 98.6%
	5,472,837	New Covenant Growth Fund(a)		$169,657,926
	3,981,189	New Covenant Income Fund(a)		89,736,003
		Total Investment Companies (Cost $235,538,237)		259,393,929
CASH EQUIVALENTS 1.4%
	$3,595,672	JP Morgan Cash Trade Execution		3,595,672
		Total Cash Equivalents (Cost $3,595,672)		3,595,672
TOTAL INVESTMENTS — 100.0% (Cost $239,133,909)				$262,989,601
Liabilities in Excess of Other Assets — 0.0%				(67,461	)
NET ASSETS — 100.0%				$262,922,140

(a) Investment in affiliate.

NEW COVENANT BALANCED INCOME FUND
SCHEDULE OF INVESTMENTS at December 31, 2010 (Unaudited)

Shares or
Principal Amount			Value
INVESTMENT COMPANIES 97.2%
	1,132,988	New Covenant Growth Fund(a)		$35,122,628
	2,365,217	New Covenant Income Fund(a)		53,311,986
		Total Investment Companies (Cost $82,944,135)		88,434,614
CASH EQUIVALENTS 2.8%
	$2,507,340	JP Morgan Cash Trade Execution		2,507,340
		Total Cash Equivalents (Cost $2,507,340)		2,507,340
TOTAL INVESTMENTS — 100.0% (Cost $85,451,475)				$90,941,954
Other Assets in Excess of Liabilities — 0.0%				19,213
NET ASSETS — 100.0%				$90,961,167

(a) Investment in affiliate.

The accompanying notes are an integral part of these financial statements.

14

statements of assets and liabilities

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

							Balanced			Balanced
	Growth Fund			Income Fund			Growth Fund			Income Fund
Assets:
Investments, at value (Cost $590,081,258, $422,308,324, $3,595,672 and $2,507,340, respectively)(a)		$724,349,235			$430,089,946			$3,595,672			$2,507,340
Investments in affiliates, at value (Cost $0, $0, $235,538,237 and $82,944,135, respectively)		—			—			259,393,929			88,434,614
Cash		1,261,510			4,131			—
Cash denominated in foreign currency, at value		34,197			—			—			—
Interest and dividends receivable		845,416			3,727,994			—			—
Receivable for capital shares issued		19,385			10,662			27,395			49,135
Receivable for investments sold		19,325			—			—			—
Receivable from Adviser		—			—			37,187			12,916
Prepaid expenses		37,151			30,254			20,226			12,990
Total Assets		726,566,219			433,862,987			263,074,409			91,016,995
Liabilities:
Payable for investments purchased		202,418			2,255,070			—			—
Payable for capital shares redeemed		15,616			4,595			12,041			4,462
Payable for return of collateral received on securities loaned		2,238,195			—			—			—
Accrued expenses and other payables:
Investment advisory, net		575,585			134,620			—			—
Administration		35,799			21,682			13,147			4,755
Shareholder service		109,753			53,335			56,172			15,306
Transfer agent		12,018			11,066			24,820			14,275
Accounting		41,714			30,852			7,955			3,271
Chief Compliance Officer		7,658			3,423			1,559			894
Other		106,503			47,394			36,575			12,865
Total Liabilities		3,345,259			2,562,037			152,269			55,828
NET ASSETS		$723,220,960			$431,300,950			$262,922,140			$90,961,167
Capital		719,487,461			491,748,867			267,566,390			91,212,885
Undistributed (distributions in excess of) net investment income		(1,104,714	)		247,233			926,343			36,946
Accumulated net realized losses from investment and foreign currency transactions		(129,448,961	)		(68,476,772	)		(29,426,285	)		(5,779,143	)
Net unrealized appreciation on investment transactions and translation of assets and liabilities denominated in foreign currency		134,287,174			7,781,622			23,855,692			5,490,479
Net assets		$723,220,960			$431,300,950			$262,922,140			$90,961,167
Shares outstanding		23,332,672			19,135,920			3,300,893			4,925,750
Net asset value, offering price and redemption price per share		$31.00			$22.54			$79.65			$18.47

(a) Includes value of securities on loan of $2,190,561, $0, $0 and $0, respectively.

The accompanying notes are an integral part of these financial statements.

15

statements of operations

NEW COVENANT FUNDS
For the six months ended December 31, 2010 (Unaudited)

							Balanced			Balanced
	Growth Fund			Income Fund			Growth Fund			Income Fund
INVESTMENT INCOME:
Interest		$53			$8,856,315			$16			$14
Dividends		5,743,890			—			—			—
Dividend income from affiliates		—			—			2,201,051			1,065,445
Foreign tax withholding		(67,047	)		—			—			—
Income from securities lending		11,177			2,412			—			—
Total Investment Income		5,688,073			8,858,727			2,201,067			1,065,459
EXPENSES (Note 3):
Investment advisory		3,379,596			1,637,923			—			—
Shareholder servicing		613,000			354,381			316,852			110,746
Other		165,661			98,372			80,198			34,870
Accounting		80,400			58,470			16,260			6,106
Administration		72,850			42,780			26,238			9,700
Custodian		48,950			4,064			42			92
Transfer agent		34,510			23,863			56,674			26,195
Chief Compliance Officer		10,937			5,850			3,585			1,340
Total expenses before contractual fee reductions		4,405,904			2,225,703			499,849			189,049
Expenses contractually reduced by Adviser		(339,901	)		(354,381	)		(214,563	)		(74,772	)
Total net expenses		4,066,003			1,871,322			285,286			114,277
NET INVESTMENT INCOME		1,622,070			6,987,405			1,915,781			951,182
REALIZED AND UNREALIZED GAINS FROM INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gains (losses) on investment transactions		30,393,873			2,802,868			(1,142,660	)+		227	+
Net realized gains on foreign currency transactions		57,249			—			—			—
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		112,874,070			(3,058,959	)		34,822,711			7,019,930
Net realized/unrealized gains (losses) from investments and foreign currency transactions		143,325,192			(256,091	)		33,680,051			7,020,157
Change in net assets resulting from operations		$144,947,262			$6,731,314			$35,595,832			$7,971,339

⁺ Represents realized gains (losses) from investment transactions with affiliates.

The accompanying notes are an integral part of these financial statements.

16

statements of changes in net assets

NEW COVENANT FUNDS

	Growth Fund						Income Fund
	For the six months			For the year			For the six months			For the year
	ended			ended			ended			ended
	December 31, 2010#			June 30, 2010			December 31, 2010#			June 30, 2010
OPERATIONS:
Net investment income		$1,622,070			$4,587,765			$6,987,405			$14,299,160
Net realized gains (losses) from investment and foreign currency transactions		30,451,122			38,010,606			2,802,868			(37,798,725	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currency		112,874,070			30,040,021			(3,058,959	)		66,203,429
Change in net assets resulting from operations		144,947,262			72,638,392			6,731,314			42,703,864
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,611,847	)		(4,672,796	)		(7,751,020	)		(13,775,952	)
Tax return of capital		—			(741,060	)		—			—
Change in net assets from distributions to shareholders		(2,611,847	)		(5,413,856	)		(7,751,020	)		13,775,952
CAPITAL TRANSACTIONS:
Proceeds from shares issued		8,890,842			27,105,641			52,233,100			37,616,676
Dividends reinvested		200,500			396,367			520,268			1,009,465
Cost of shares redeemed		(53,128,601	)		(68,012,262	)		(22,168,817	)		(39,263,947	)
Change in net assets from capital transactions		(44,037,259	)		(40,510,254	)		30,584,551			(637,806	)
Change in net assets		98,298,156			26,714,282			29,564,845			28,290,106
NET ASSETS:
Beginning of period		624,922,804			598,208,522			401,736,105			373,445,999
End of period		$723,220,960			$624,922,804			$431,300,950			$401,736,105
SHARE TRANSACTIONS:
Issued		327,556			1,049,674			2,288,193			1,695,097
Reinvested		6,840			14,682			23,058			45,615
Redeemed		(1,891,354	)		(2,545,481	)		(975,141	)		(1,783,942	)
Net decrease		(1,556,958	)		(1,481,125	)		1,336,110			(43,230	)
Undistributed (distributions in excess of) net investment income		$(1,104,714	)		$(114,937	)		$247,233			$1,010,848

^# Unaudited

The accompanying notes are an integral part of these financial statements.

17

statements of changes in net assets

NEW COVENANT FUNDS

	Balanced Growth Fund						Balanced Income Fund
	For the six months			For the year			For the six months			For the year
	ended			ended			ended			ended
	December 31, 2010#			June 30, 2010			December 31, 2010#			June 30, 2010
OPERATIONS:
Net investment income		$1,915,781			$3,783,900			$951,182			$1,853,822
Net realized gains (losses) from investment and foreign currency transactions		(1,142,660	)+		(2,670,986	)+		227	+		(641,774	)+
Net change in unrealized appreciation on investments and translation of assets and liabilities in foreign currency		34,822,711			24,384,902			7,019,930			7,581,206
Change in net assets resulting from operations		35,595,832			25,497,816			7,971,339			8,793,254
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,154,936	)		(3,614,274	)		(948,951	)		(1,817,908	)
Tax return of capital		—			(184,366	)		—			(36,554	)
Change in net assets from distributions to shareholders		(1,154,936	)		(3,798,640	)		(948,951	)		(1,854,462	)
CAPITAL TRANSACTIONS:
Proceeds from shares issued		7,420,944			15,952,413			2,888,374			5,034,737
Dividends reinvested		915,104			2,993,694			618,185			1,187,641
Cost of shares redeemed		(17,358,928	)		(24,211,230	)		(4,604,546	)		(6,789,645	)
Change in net assets from capital transactions		(9,022,880	)		(5,265,123	)		(1,097,987	)		(567,267	)
Change in net assets		25,418,016			16,434,053			5,924,401			6,371,525
NET ASSETS:
Beginning of period		237,504,124			221,070,071			85,036,766			78,665,241
End of period		$262,922,140			$237,504,124			$90,961,167			$85,036,766
SHARE TRANSACTIONS:
Issued		98,396			224,528			162,214			292,427
Reinvested		12,091			41,805			34,149			68,910
Redeemed		(228,505	)		(339,249	)		(256,231	)		(399,354	)
Net decrease		(118,018	)		(72,916	)		(59,868	)		(38,017	)
Undistributed net investment income		$926,343			$165,498			$36,946			$34,715

#	Unaudited
+	Represents realized gains (losses) from investment transactions with affiliates.

The accompanying notes are an integral part of these financial statements.

18

financial highlights

NEW COVENANT FUNDS

For a Share outstanding throughout the period

	Growth Fund
	For the six months			For the year			For the year			For the year			For the year			For the year
	ended			ended			ended			ended			ended			ended
	December 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2010(a)			2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period		$25.11			$22.68			$31.95			$38.90			$32.76			$29.92
INVESTMENT ACTIVITIES:
Net investment income		0.07			0.21			0.29			0.26			0.26			0.18
Net realized and unrealized gains (losses) on investments and foreign currency transactions		5.93			2.43			(9.29	)		(4.98	)		6.17			2.86
Total from Investment Activities		6.00			2.64			(9.00	)		(4.72	)		6.43			3.04
DIVIDENDS:
Net investment income		(0.11	)		(0.18	)		(0.25	)		(0.24	)		(0.29	)		(0.20	)
Net realized gains		—			—			—			(1.97	)		—			—
Tax return of capital		—			(0.03	)		(0.02	)		(0.02	)		—			—
Total Dividends		(0.11	)		(0.21	)		(0.27	)		(2.23	)		(0.29	)		(0.20	)
Change in net asset value per share		5.89			2.43			(9.27	)		(6.95	)		6.14			2.84
Net Asset Value, End of Period		$31.00			$25.11			$22.68			$31.95			$38.90			$32.76
Total Return		23.92%(b)			11.54%			(28.16)%			(12.61)%			19.68%			10.17%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (in 000’s)		$677,181			$624,923			$598,209			$836,086			$1,033,536			$906,010
Ratio of expenses to average net assets		1.19%(c)			1.19%			1.12%			1.10%			1.08%			1.07%
Ratio of expenses to average net assets, excluding waivers		1.29%(c)			1.29%			1.30%			1.29%			1.28%			1.28%
Ratio of net investment income to average net assets		0.48%(c)			0.68%			1.15%			0.73%			0.73%			0.58%
Ratio of net investment income to average net assets, excluding waivers		0.38%(c)			0.58%			0.97%			0.54%			0.53%			0.37%
Portfolio turnover rate		112%(b)			81%			94%			65%			65%			51%

(a)	Unaudited.
(b)	Not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

19

financial highlights

NEW COVENANT FUNDS

For a Share outstanding throughout the period

	Income Fund
	For the six months			For the year			For the year			For the year			For the year			For the year
	ended			ended			ended			ended			ended			ended
	December 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2010(a)			2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period		$22.57			$20.93			$23.73			$24.52			$24.28			$25.56
INVESTMENT ACTIVITIES:
Net investment income		0.36			0.81			1.11			1.16			1.12			1.00
Net realized and unrealized gains (losses) on investments		0.01			1.62			(2.79	)		(0.81	)		0.25			(1.23	)
Total from Investment Activities		0.37			2.43			(1.68	)		0.35			1.37			(0.23	)
DIVIDENDS:
Net investment income		(0.40	)		(0.79	)		(1.12	)		(1.14	)		(1.13	)		(1.04	)
Net realized gains		—			—			—			—			—			(0.01	)
Tax return of capital		—			—			—			—			—	*		—	*
Total Dividends		(0.40	)		(0.79	)		(1.12	)		(1.14	)		(1.13	)		(1.05	)
Change in net asset value per share		(0.03	)		1.64			(2.80	)		(0.79	)		0.24			(1.28	)
Net Asset Value, End of Period		$22.54			$22.57			$20.93			$23.73			$24.52			$24.28
Total Return		1.65%(b)			11.72%			(6.90)%			1.36%			5.65%			(0.90)%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (in 000’s)		$433,219			$401,736			$373,446			$496,325			$537,345			$526,359
Ratio of expenses to average net assets		0.86%(c)			0.87%			0.86%			0.85%			0.84%			0.84%
Ratio of expenses to average net assets, excluding waivers		1.02%(c)			1.03%			1.02%			1.01%			1.01%			1.01%
Ratio of net investment income to average net assets		3.20%(c)			3.68%			5.15%			4.70%			4.49%			4.04%
Ratio of net investment income to average net assets, excluding waivers		3.04%(c)			3.52%			4.99%			4.54%			4.32%			3.87%
Portfolio turnover rate		65%(b)			76%			230%			170%			258%			263%

*	Less than $0.005.
(a)	Unaudited.
(b)	Not annualized.
(c)	Annualized.

The accompanying notes are an integral part of these financial statements.

20

financial highlights

NEW COVENANT FUNDS

For a Share outstanding throughout the period

	Balanced Growth Fund
	For the six months			For the year			For the year			For the year			For the year			For the year
	ended			ended			ended			ended			ended			ended
	December 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2010(b)			2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period		$69.47			$63.31			$82.49			$90.86			$81.30			$78.20
INVESTMENT ACTIVITIES:
Net investment income(a)		0.58			1.11			1.70			1.83			1.83			1.52
Net realized and unrealized gains (losses) on investments(a)		9.95			6.16			(18.25	)		(8.37	)		9.56			3.10
Total from Investment Activities		10.53			7.27			(16.55	)		(6.54	)		11.39			4.62
DIVIDENDS:
Net investment income		(0.35	)		(1.06	)		(1.69	)		(1.83	)		(1.83	)		(1.52	)
Net realized gains		—			—			(0.93	)		—			—			—
Tax return of capital		—			(0.05	)		(0.01	)		—			—			—	*
Total Dividends		(0.35	)		(1.11	)		(2.63	)		(1.83	)		(1.83	)		(1.52	)
Change in net asset value per share		10.18			6.16			(19.18	)		(8.37	)		9.56			3.10
Net Asset Value, End of Period		$79.65			$69.47			$63.31			$82.49			$90.86			$81.30
Total Return		15.18%(c)			11.43%			(19.96)%			(7.26)%			14.11%			5.93%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (in 000’s)		$253,639			$237,504			$221,070			$305,294			$353,344			$312,077
Ratio of expenses to average net assets		0.22%(d)			0.23%			0.13%			0.15%			0.12%			0.12%
Ratio of expenses to average net assets, excluding waivers		0.39%(d)			0.40%			0.37%			0.39%			0.37%			0.38%
Ratio of net investment income to average net assets		1.50%(d)			1.56%			2.56%			2.07%			2.11%			1.85%
Ratio of net investment income to average net assets, excluding waivers		1.33%(d)			1.39%			2.32%			1.83%			1.86%			1.59%
Portfolio turnover rate		4%(c)			7%			7%			17%			7%			10%

*	Less than $0.005.
(a)	Includes income or gains (losses) from affiliates.
(b)	Unaudited.
(c)	Not annualized.
(d)	Annualized.

The accompanying notes are an integral part of these financial statements.

21

financial highlights

NEW COVENANT FUNDS

For a Share outstanding throughout the period

	Balanced Income Fund
	For the six months			For the year			For the year			For the year			For the year			For the year
	ended			ended			ended			ended			ended			ended
	December 31,			June 30,			June 30,			June 30,			June 30,			June 30,
	2010(b)			2010			2009			2008			2007			2006
Net Asset Value, Beginning of Period		$17.06			$15.66			$19.01			$20.40			$18.99			$18.90
INVESTMENT ACTIVITIES:
Net investment income(a)		0.19			0.38			0.56			0.60			0.59			0.52
Net realized and unrealized gains (losses)
on investments(a)		1.41			1.39			(3.35	)		(1.39	)		1.41			0.09
Total from Investment Activities		1.60			1.77			(2.79	)		(0.79	)		2.00			0.61
DIVIDENDS:
Net investment income		(0.19	)		(0.36	)		(0.55	)		(0.60	)		(0.59	)		(0.52	)
Net realized gains		—			—			—			—			—			—
Tax return of capital		—			(0.01	)		(0.01	)		—			—	*		—
Total Dividends		(0.19	)		(0.37	)		(0.56	)		(0.60	)		(0.59	)		(0.52	)
Change in net asset value per share		1.41			1.40			(3.35	)		(1.39	)		1.41			0.09
Net Asset Value, End of Period		$18.47			$17.06			$15.66			$19.01			$20.40			$18.99
Total Return		9.42%(c)			11.31%			(14.60)%			(3.95)%			10.65%			3.26%
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (in 000’s)		$89,196			$85,037			$78,665			$102,657			$121,855			$122,512
Ratio of expenses to average net assets		0.25%(d)			0.24%			0.16%			0.20%			0.15%			0.15%
Ratio of expenses to average net assets, excluding waivers		0.42%(d)			0.40%			0.40%			0.44%			0.40%			0.41%
Ratio of net investment income to average net assets		2.12%(d)			2.17%			3.47%			2.97%			2.95%			2.71%
Ratio of net investment income to average net assets, excluding waivers		1.95%(d)			2.01%			3.23%			2.73%			2.70%			2.45%
Portfolio turnover rate		5%(c)			7%			10%			10%			7%			13%

*	Less than $0.005.
(a)	Includes income or gains (losses) from affiliates.
(b)	Unaudited.
(c)	Not Annualized.
(d)	Annualized.

The accompanying notes are an integral part of these financial statements.

22

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

1. Organization

New Covenant Funds (the “Trust”), an open-end, diversified management investment company, was organized as a Delaware statutory trust on September 30, 1998. It currently consists of four investment funds: New Covenant Growth Fund (“Growth Fund”), New Covenant Income Fund (“Income Fund”), New Covenant Balanced Growth Fund (“Balanced Growth Fund”), and New Covenant Balanced Income Fund (“Balanced Income Fund”), (individually, a “Fund,” and collectively, the “Funds”). The Funds commenced operations on July 1, 1999. The Trust’s authorized capital consists of an unlimited number of shares of beneficial interest of $0.001 par value. The Funds’ investment adviser is One Compass Advisors, a wholly owned subsidiary of the Presbyterian Church (U.S.A.) Foundation (the “Adviser”).

The objectives of the Funds are as follows:

Growth Fund	Long-term capital appreciation. Dividend income, if any, will be incidental.
Income Fund	High level of current income with preservation of capital.
Balanced Growth Fund	Capital appreciation with less risk than would be present in a portfolio of only common stocks.
Balanced Income Fund	Current income and long-term growth of capital.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) 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 during the reporting period. Actual results could differ from those estimates. The following is a summary of the significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with GAAP.

Portfolio Valuation:  Fund investments are recorded at market value. Portfolio securities listed on a domestic or foreign exchange are valued at the last sale price on the day of valuation or, if there was no sale that day, at the last reported bid price as of the close of trading. Equity securities traded on NASDAQ use the official closing price. Equity securities which are traded in the over-the-counter market only, but which are not included on NASDAQ, are valued at the mean between the last preceding bid and ask prices. Debt securities with a remaining maturity of sixty days or more are valued by a pricing service using valuation methods such as matrix pricing as well as market transactions and dealer quotations. Debt securities with a remaining maturity of less than sixty days are valued at amortized cost, which approximates market value. Open-end funds are valued at net asset value. Closed-end funds and exchange-traded funds are valued at market value. All other assets and securities with no readily determinable market values are valued using procedures adopted by the Board of Trustees. Factors used in determining fair value include but are not limited to: type of security or asset, fundamental analytical data relating to the investment in the security, evaluation of the forces that influence the market in which the security is purchased and sold, and information as to any transactions or offers with respect to the security. As of December 31, 2010, the Funds did not hold any securities for which market quotations were not readily available.

Foreign securities traded outside the United States are generally valued as of the time their trading is complete, which is usually different from the close of the New York Stock Exchange (“NYSE”). Occasionally, events affecting the value of such securities may occur between such times and the close of the NYSE that will not be reflected in the security’s market value. If events materially affecting the value of such securities occur during such period, these securities will be valued at their fair value according to procedures adopted by the Board of Trustees. All securities and other assets of a Fund initially expressed in foreign currencies will be converted to U.S. dollar values at the foreign exchange rate every business day, generally at 4:00 PM ET.

On January 21, 2010, the FASB Issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 amends ASC 820, Fair Value Measurements and Disclosures (formerly FASB Statement No. 157), to require additional disclosures regarding fair value measurements. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for Level 2 or Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) will be required to be disclosed on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfers and iii) purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 rollforward rather than as one net number.

The effective date of this guidance is for interim and annual periods beginning after December 15, 2009; however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. The Funds have disclosed the applicable requirements of this accounting standard in their financial statements.

23

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and each Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of each Fund’s investments and are summarized in the following fair value hierarchy:

Level 1 — Quoted prices in active markets for identical securities.

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, current discount rates, prepayment speeds, credit quality, yields for comparable securities, and trading volume).

Level 3 — Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of December 31, 2010, in valuing each Fund’s investments carried at fair value:

Growth Fund	Level 1		Level 2		Level 3		Total Market Value
Equity
Common Stocks		$702,147,109		$3,294,875		$—		$705,441,984
Real Estate Investment Trusts		3,885,444		—		—		3,885,444
Preferred Stocks		4,324,783		—		—		4,324,783
Total Equity		$710,357,336		$3,294,875		$—		$713,652,211
Fixed Income
Money Market Fund		$2,238,195		$0		$—		$2,238,195
Total Fixed Income		$2,238,195		$0		$—		$2,238,195
Short-Term Investments		$8,458,829		$0		$—		$8,458,829
Total Investment in Securities		$721,054,360		$3,294,875		$—		$724,349,235

Income Fund	Level 1		Level 2		Level 3		Total Market Value
Fixed Income
U.S. Government Agencies		$—		$203,158,343		$—		$203,158,343
Corporate Bonds		—		102,389,242		—		102,389,242
Non-Agency Mortgage Backed Securities		—		44,513,615		—		44,513,615
U.S. Treasury Obligations		—		33,222,989		—		33,222,989
Asset-Backed Securities		—		28,257,201		—		28,257,201
Municipal Bonds		—		3,246,455		—		3,246,455
Other Agency Securities		—		3,632,609		—		3,632,609
Total Fixed Income		$—		$418,420,454		$—		$418,420,454
Short-Term Investments		$11,669,492		$0		$—		$11,669,492
Total Investment in Securities		$11,669,492		$418,420,454		$—		$430,089,946

Balanced Growth Fund	Level 1		Level 2		Level 3		Total Market Value
Equity
Investment Companies		$259,393,929		$—		$—		$259,393,929
Total Equity		$259,393,929		$—		$—		$259,393,929
Short-Term Investments		$3,595,672		$—		$—		$3,595,672
Total Investment in Securities		$262,989,601		$—		$—		$262,989,601

Balanced Income Fund	Level 1		Level 2		Level 3		Total Market Value
Equity
Investment Companies		$88,434,614		$—		$—		$88,434,614
Total Equity		$88,434,614		$—		$—		$88,434,614
Short-Term Investments		$2,507,340		$—		$—		$2,507,340
Total Investment in Securities		$90,941,954		$—		$—		$90,941,954

For the six months ended December 31, 2010, there were no significant transfers between Level 1 and Level 2.

24

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

Securities Transactions and Investment Income:  During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on trade date on the last business day of the reporting period. Securities sold are determined on a specific identification basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization of premium or accretion of discount for both financial reporting and tax purposes. Dividend income is recorded on the ex-dividend 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.

Options:  The Income Fund may purchase or write options which are traded over-the-counter to hedge fluctuation risks in the prices of certain securities. When the Fund writes a call or put option, an amount equal to the premium received is reflected as a liability. The liability is subsequently “marked-to-market” to reflect the current market value of the option written. The premium paid by the Fund for the purchase of a call or put option is recorded as an investment and subsequently “marked-to-market” to reflect the current market value of the option purchased. The Fund is subject to the risk of an imperfect correlation between movement in the price of the option and the price of the underlying security. Risks may also arise due to illiquid secondary markets for the options. There were no options outstanding at December 31, 2010.

Foreign Currency Translation:  The books and records of the Funds are maintained in U.S. dollars. Investment valuation and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investments and income and expenses are converted into U.S. dollars based upon exchange rates prevailing on the respective dates of such transactions. That portion of unrealized gains or losses on investments due to fluctuations in foreign currency exchange rates is not separately disclosed.

The Funds do not isolate the portion of gains and losses on investments in securities that is due to changes in the foreign exchange rates from that which is due to changes in the market prices of such securities. The Funds report gains and losses on foreign currency related transactions as realized and unrealized gains and losses for financial reporting purposes, whereas such gains and losses are treated as ordinary income or loss for U.S. federal income tax purposes.

Foreign Currency Forward Contracts:  The Growth Fund may enter into foreign currency forward contracts as hedges against either specific transactions or portfolio positions. All commitments are “marked-to-market” daily at the applicable foreign exchange rate and any resulting unrealized gains or losses are recorded currently. The Fund realizes gains and losses at the time foreign currency forward contracts are extinguished. As of December 31, 2010, there were no foreign currency forward contracts open in the Fund.

Loans of Portfolio Securities:  The Growth Fund and the Income Fund may lend their securities pursuant to a securities lending agreement (“Lending Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”). Security loans made pursuant to the Lending Agreement are required at all times to be secured by collateral valued at at least 102% of the market value of the securities loaned. Cash collateral received is invested by JPMorgan pursuant to the terms of the Lending Agreement. All such investments are made at the risk of the Funds and, as such, the Funds are liable for investment losses. To the extent a loan is secured by non-cash collateral, the borrower is required to pay a loan premium. Non-cash collateral received cannot be sold or repledged. Net income earned on the investment of cash collateral and loan premiums received on non-cash collateral are allocated between JPMorgan and the Funds in accordance with the Lending Agreement. Income allocated to the Funds is included in investment income in the respective Statements of Operations.

At December 31, 2010, the cash collateral received by the Growth Fund and the Income Fund was invested in a money market mutual fund, at the time of purchase; however, such investments are subject to risk of payment delays or default on the part of the issuer or counterparty or otherwise may not generate sufficient interest to support the costs associated with securities lending activities. The investments purchased with the cash collateral are valued daily based on the investment ’s prior day’s valuation, in connection with the calculation of the Growth Fund’s and Income Fund’s net asset values. A Fund could also experience delays in recovering its securities and possible loss of income or value if the borrower fails to return the borrowed securities, although this risk is mitigated by the collateral and by the Lending Agreement. Information on the investment of cash collateral is shown in the Schedules of Investments. The Growth Fund and the Income Fund receive payments from borrowers equivalent to the dividends and interest that would have been earned on the securities lent while simultaneously seeking to earn income on the investment cash collateral. One of the risks is that, from time to time, the cost of borrowing cash could exceed income generated from the securities in the reinvestment portfolio. There is also the risk that, when lending portfolio securities, the securities may not be available to a Fund on a timely basis and a Fund may, therefore, lose the opportunity to sell the securities at a desirable price. In addition, in the event that a borrower of securities would file for bankruptcy or become insolvent, disposition of the securities may be delayed pending court action. However, loans will be made only to borrowers deemed by the Adviser to be creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the Adviser, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments.

25

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

The value of the loaned securities and related collateral at December 31, 2010, was as follows:

	Value of		Value of
Fund	Securities Loaned		Cash Collateral
Growth Fund		$2,190,561		$2,238,195
Income Fund		—		—

All collateral received as cash and securities is received, held and administered by the Funds’ custodian for the benefit of the Funds in the applicable custody account or other account established for the purpose of holding collateral.

Repurchase Agreements:  The Funds may enter into repurchase agreements which are secured by obligations of the U.S. government with a bank, broker-dealer or other financial institution. Each repurchase agreement is at least 102% collateralized and marked-to-market. However, in the event of default or bankruptcy by the counterparty to the repurchase agreement, realization of the collateral may by subject to certain costs, losses or delays. As of December 31, 2010, none of the Funds held repurchase agreements.

Forward Commitments, When-Issued Securities and Delayed-Delivery Transactions:  The Growth Fund and the Income Fund may purchase or sell securities on a when-issued or delayed-delivery basis and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. Debt securities are often issued on that basis. No income will accrue on securities purchased on a when-issued or delayed-delivery basis until the securities are delivered. Securities purchased or sold on a when-issued, delayed-delivery or forward-commitment basis involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Although the Funds would generally purchase securities on a when-issued, delayed-delivery or forward-commitment basis with the intention of acquiring the securities, the Funds may dispose of such securities prior to settlement if the Adviser or applicable sub-adviser deems it appropriate to do so.

The Funds may dispose of or renegotiate a when-issued or forward commitment. The Funds will normally realize a capital gain or loss in connection with these transactions.

When the Funds purchase securities on a when-issued, delayed-delivery or forward-commitment basis, the Funds will maintain cash, U.S. government securities or other liquid portfolio securities having a value (determined daily) at least equal to the amount of the Funds’ purchase commitments. In the case of a forward commitment to sell portfolio securities, the custodian will hold the portfolio securities in a segregated account while the commitment is outstanding. These procedures are designed to ensure that the Funds will maintain sufficient assets at all times to cover their obligations under when-issued purchases, forward commitments and delayed-delivery transactions.

Dividends and Distributions to Shareholders:  Dividends from net investment income of all Funds are declared and paid quarterly. For all Funds, all net realized long-term or short-term capital gains, if any, will be declared and distributed at least annually.

Income dividends and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income, gains and losses on various investment securities held by a Fund, timing differences in the recognition of income, gains and losses and differing characterizations of distributions made by the Fund.

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 reclassifications. To the extent that distributions exceed net investment income and net realized gains for tax purposes, they are reported as returns of capital.

Federal Income Taxes:  It is each Fund’s intention to continue to qualify annually as a regulated investment company by complying with the appropriate provisions of sub-chapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provision for federal income tax has been made.

The Funds have reviewed the tax positions taken on federal income tax returns for each of the three open tax years and as of December 31, 2010, and have determined that no provision for income tax is required in the Funds’ financial statements. Foreign securities held by a Fund may be subject to foreign taxation on dividend and interest income received. Foreign taxes, if any, are recorded based on tax regulations and rates that exist in the foreign markets in which the Funds invest.

Allocation of Expenses:  Expenses directly attributable to a Fund are charged directly to that Fund, while expenses which are attributable to more than one Fund of the Trust are allocated among the respective Funds based upon relative net assets or some other reasonable method.

3. Investment Advisory and Other Agreements

The Trust, on behalf of each Fund, has entered into an Investment Advisory Agreement with the Adviser. Under the Agreement, the Adviser is responsible for managing the Funds’ investments as well as furnishing the Funds with certain administrative services. The

26

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

Growth Fund pays the Adviser a monthly fee at the annual rate of 0.99% of the Growth Fund’s average daily net assets and the Income Fund pays the Adviser a monthly fee at the annual rate of 0.75% of the Income Fund’s average daily net assets. Effective January 1, 2011 the Adviser receives a reduced advisory fee of 0.87% for the Growth Fund and 0.65% for the Income Fund. The Adviser does not receive advisory fees for the Balanced Growth and Balanced Income Funds (the “Balanced Funds”). The Adviser has entered into Sub-Advisory Agreements with seven sub-advisors to assist in the selection and management of the Growth Fund’s and Income Fund’s investment securities. It is the responsibility of the Sub-Advisers, under the direction of the Adviser, to make day-to-day investment decisions for these Funds. The Adviser, not the Funds, pays each Sub-Adviser a quarterly fee for their services. The Adviser pays the Sub-Adviser’s fee directly from its own advisory fees. The sub-advisory fees are based on the assets of a Fund for which the Sub-Adviser is responsible for making investment decisions.

The following are the Sub-Advisers for the Growth Fund: Baillie Gifford Overseas, Ltd., Santa Barbara Asset Management Inc., Sound Shore Management Inc., TimesSquare Capital Management and Brockhouse & Cooper International, Inc.

The following are the Sub-Advisers for the Income Fund: Ernest Partners, LLC and Robert W. Baird & Company, Incorporated.

The Trust employs a Chief Compliance Officer (“CCO”) who receives a portion of her compensation as approved by the Board of Trustees, as well as reimbursement of out-of-pocket expenses. The CCO is also an employee of the Adviser. For the six months ended December 31, 2010, the Growth Fund, the Income Fund, the Balanced Growth Fund, and the Balanced Income Fund were allocated a portion of the CCO’s compensation of $10,937, $5,850, $3,585 and $1,340, respectively.

The Trust is a party to Shareholder Services Agreements pursuant to which each Fund is authorized to make payments to certain entities which may include investment advisors, banks, trust companies and other types of organizations (“Authorized Service Providers”) for providing administrative services with respect to shares of the Funds attributable to or held in the name of the Authorized Service Provider for its clients or other parties with whom they have a servicing relationship. Under the terms of the Shareholder Services Agreements, each Fund is authorized to pay monthly an Authorized Service Provider (which may include affiliates of the Funds) a shareholder services fee at the rate of 0.25% on an annual basis of the average daily net assets of the shares of the Fund attributable to or held in the name of the Authorized Service Provider for providing certain administrative services to Fund shareholders with whom the Authorized Service Provider has a servicing relationship. In connection with the Shareholder Services Agreement, the Adviser has agreed to waive all or a portion of the amount of the investment advisory fees payable to it by any Fund to the extent of the amount paid in fees by a Fund to any affiliated Authorized Service Provider under the Shareholder Services Agreements. Effective July 1, 2009 through October 31, 2011, the Adviser agrees to waive up to 0.17% on an annual basis of the average daily net assets for the Growth Fund, the Balanced Growth Fund and the Balanced Income Fund. Effective January 1, 2011, the Funds will no longer pay shareholder servicing fees on assets not held through qualified broker dealers. In connection with this, the arrangement with respect to the waiver of such fees was discontinued as of that date as well.

The Trust has entered into servicing agreements with U.S. Bancorp Fund Services, LLC (“USBFS”), an indirect, wholly-owned subsidiary of U.S. Bancorp. Under the servicing agreements, USBFS provides transfer agency, administrative and fund accounting services to the Funds. Under the terms of the Transfer Agency Agreement, USBFS is entitled to account based fees and annual fund level fees, as well as reimbursement of out-of-pocket expenses incurred in providing transfer agency services. Under the Fund Accounting Agreement, USBFS is entitled to a fee computed at an annual rate of 0.02% of the Trust’s average daily net assets for the first $500,000,000, 0.01% for $500,000,001 to $1,000,000,000, and 0.0075% over $1,000,000,000. Under the Administration Agreement, USBFS is entitled to a fee computed at an annual rate of 0.03% of the Trust’s average daily net assets for the first $500,000,000, 0.02% for $500,000,001 to $1,000,000,000, and 0.01% over $1,000,000,000.

The Trust issues shares of the Funds pursuant to a Distribution Agreement with New Covenant Funds Distributor, Inc. (the “Distributor”), a wholly-owned subsidiary of New Covenant Trust Company, N.A., a subsidiary of the Presbyterian Church (U.S.A.) Foundation, under which the Distributor serves as the principal distributor of the Funds’ shares. The Funds do not pay the Distributor in its capacity as principal distributor.

The Trust has a Custodian Agreement with JPMorgan Chase Bank, N.A.

No officer, trustee or employee of the Trust, USBFS, or any affiliate thereof, except the CCO, receives any compensation from the Funds for serving as a Trustee or officer of the Trust. The Funds reimburse expenses incurred by the Trustees and Officers of the Trust in attending Board and Committee meetings.

27

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

A summary of each Balanced Fund’s investment in the Growth Fund and Income Fund for the six months ended December 31, 2010, is as follows:

	Share Activity
	Balance						Balance		Realized					Value
Fund	June 30, 2010		Purchases		Sales		December 31, 2010		Gain (Loss)			Income		December 31, 2010
Balanced Growth Fund
Growth Fund		5,824,331		121,601		473,095		5,472,837		$(733,609	)		$615,017		$169,657,926
Income Fund		3,918,252		269,741		206,804		3,981,189		(409,051	)		1,586,034		89,736,003
Balanced Income Fund
Growth Fund		1,237,882		44,246		149,140		1,132,988		148,961			128,124		35,122,628
Income Fund		2,289,147		142,348		66,278		2,365,217		(148,734	)		937,321		53,311,986

4. Purchases and Sales of Securities

The cost of purchases and proceeds from sales of securities, excluding U.S. government and other short-term investments, for the six months ended December 31, 2010, were as follows:

	Purchases		Sales
	(excluding		(excluding
	Short-Term		Short-Term
	Investments &		Investments &		Purchases of		Sales of
	U.S. Government)		U.S. Government)		U.S. Government		U.S. Government
Fund	Securities		Securities		Securities		Securities
Growth Fund		$731,600,274		$770,250,911		$—		$—
Income Fund		218,501,742		214,264,784		76,034,708		52,845,035
Balanced Growth Fund		9,270,236		18,239,453		—		—
Balanced Income Fund		4,427,014		5,761,510		—		—

5. Risk Factors

The performance of a Fund’s investments in non-U.S. companies and in companies operating internationally or in foreign countries will depend principally on economic conditions in their product markets, the securities markets where their securities are traded, and currency exchange rates. These risks are present because of uncertainty in future exchange rates back into U.S. dollars and possible political instability, which could affect foreign financial markets and local economies. There are also risks related to social and economic developments abroad, as well as risks resulting from the differences between the regulations to which U.S. and foreign issuers and markets are subject.

The Funds will not invest more than 15% of the value of their net assets in securities that are illiquid because of restrictions on transferability or other reasons. Repurchase agreements with deemed maturities in excess of seven days are subject to this 15% limit. The Funds may purchase securities which are not registered under the Securities Act of 1933 (the “Securities Act”) but which can be sold to “qualified institutional buyers” in accordance with Rule 144A under the Securities Act. In some cases, such securities are classified as “illiquid securities;” however, any such security will not be considered illiquid so long as it is determined by the Adviser, under guidelines approved by the Board of Trustees, that an adequate trading market exists for that security. This investment practice could have the effect of increasing the level of illiquidity in a Fund during any period that qualified institutional buyers become uninterested in purchasing these restricted securities.

The Income Fund may invest a limited amount of assets in debt securities which are rated below investment grade (hereinafter referred to as “lower-rated securities”) or which are unrated but deemed equivalent to those rated below investment grade by the portfolio managers. The lower the ratings of such debt securities, the greater their risks. These debt instruments generally offer a higher current yield than that available from higher-grade issues, and typically involve greater risks. The yields on lower-rated securities will fluctuate over time. In general, prices of all bonds rise when interest rates fall and fall when interest rates rise. Lower-rated securities are subject to adverse changes in general economic conditions and to changes in the financial condition of their issuers. During periods of economic downturn or rising interest rates, issuers of these instruments may experience financial stress that could adversely affect their ability to make payments of principal and interest, and increase the possibility of default.

The Balanced Funds invest their assets primarily in the Growth Fund and the Income Fund. By investing primarily in shares of these Funds, shareholders of the Balanced Funds indirectly pay a portion of the operating expenses, management fees and brokerage costs of the underlying Funds as well as their own operating expenses. Thus, shareholders of the Balanced Funds may indirectly pay slightly higher total operating expenses and other costs than they would pay by directly owning shares of the Growth Fund and Income Fund. Total fees and expenses to be borne by investors in either Balanced Fund will depend on the portion of the Funds’ assets invested in the Growth Fund and in the Income Fund. A change in the asset allocation of either Balanced Fund could increase or reduce the fees

28

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

and expenses actually borne by investors in that Fund. The Balanced Funds are also subject to rebalancing risk. Rebalancing activities, while undertaken to maintain a Fund’s investment risk-to-reward ratio, may cause the Fund to under-perform other funds with similar investment objectives. For the Balanced Growth Fund, it is possible after rebalancing from equities into a greater percentage of fixed-income securities, that equities will outperform fixed-income investments. For the Balanced Income Fund, it is possible that after rebalancing from fixed-income securities into a greater percentage of equity securities, that fixed-income securities will outperform equity investments. The performance of the Balanced Growth Fund and the Balanced Income Fund depends on the performance of the underlying Funds in which they invest.

6. Distribution Information

Income and long-term capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. The tax character of distributions paid during the six months ended December 31, 2010 was as follows:

	Ordinary		Net Long-Term		Total Taxable		Return of		Total
	Income		Capital Gains		Deductions		Capital		Distributions
Growth Fund		$2,611,847		$—		$2,611,847		$—		$2,611,847
Income Fund		7,751,020		—		7,751,020		—		7,751,020
Balanced Growth Fund		1,154,936		—		1,154,936		—		1,154,936
Balanced Income Fund		948,951		—		948,951		—		948,951

The tax character of distributions paid during the year ended June 30, 2010 was as follows:

	Ordinary		Net Long-Term		Total Taxable		Return of		Total
	Income		Capital Gains		Deductions		Capital		Distributions
Growth Fund		$4,672,796		$—		$4,672,796		$741,060		$5,413,856
Income Fund		13,775,952		—		13,775,952		—		13,775,952
Balanced Growth Fund		3,614,274		—		3,614,274		184,366		3,798,640
Balanced Income Fund		1,817,908		—		1,817,908		36,554		1,854,462

7. Federal Income Taxes

As of June 30, 2010, the Funds had available for federal tax purposes unused capital loss carryforwards expiring as follows:

	2012		2013		2014		2015		2016		2017		2018		Total
Growth Fund		$—		$—		$—		$—		$—		$61,581,089		$88,639,076		$150,220,165
Income Fund		—		—		1,591,357		5,673,243		517,116		6,784,158		56,670,809		71,236,683
Balanced Growth Fund		—		—		—		—		—		764,364		9,287,056		10,051,420
Balanced Income Fund		1,227,811		792,155		—		—		—		335,058		1,962,388		4,317,412

Under tax law, certain capital and foreign currency losses realized after October 31, and within the taxable year may be deferred and treated as occurring on the first business day of the following fiscal year. For the year ended June 30, 2010, the Funds deferred to July 1, 2010, post-October losses of:

	Post-October		Post-October
	Capital Losses		Currency Losses
Growth Fund		$—		114,937
Income Fund		—		—
Balanced Growth Fund		919,832		—
Balanced Income Fund		240,450		—

29

notes to financial statements

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

As of June 30, 2010, the components of accumulated earnings/(deficit) on a tax basis were as follows:

															Total
	Undistributed		Undistributed						Accumulated			Unrealized			Accumulated
	Ordinary		Long-Term		Accumulated		Dividends		Capital and			Appreciation/			Earnings/
	Income		Capital Gains		Earnings		Payable		Other Losses			(Depreciation)*			(Deficit)
Growth Fund		$—		$—		$—		$—		$(150,423,315	)		$11,821,399			$(138,601,916	)
Income Fund		1,010,848		—		1,010,848		—		(71,236,683	)		10,797,624			(59,428,211	)
Balanced Growth Fund		—		—		—		—		(10,971,252	)		(28,113,894	)		(39,085,146	)
Balanced Income Fund		—		—		—		—		(4,557,862	)		(2,716,244	)		(7,274,106	)

* The difference between the book-basis and tax basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales, passive foreign investment companies (“PFICs”) and the difference between book and tax amortization methods for premium and market discount, and the return of capital adjustments from real estate investment trusts.

At June 30, 2010, the cost, gross unrealized appreciation and gross unrealized depreciation on securities, for federal income tax purposes, were as follows:

								Net Unrealized
			Tax Unrealized		Tax Unrealized			Appreciation
Portfolio Name	Tax Cost		Appreciation		(Depreciation)			(Depreciation)
Growth Fund		$611,233,498		$69,357,547		$(57,536,148	)		$11,821,399
Income Fund		391,807,128		15,281,494		(4,483,870	)		10,797,624
Balanced Growth Fund		265,782,568		7,900,023		(36,013,917	)		(28,113,894	)
Balanced Income Fund		87,802,645		3,460,384		(6,176,628	)		(2,716,244	)

8. Subsequent Events

In preparing the financial statements as of December 31, 2010, management considered the impact of subsequent events through the date of issuance for potential recognition or disclosure in these financial statements.

9. Accounting Pronouncements

On December 22, 2010, The Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by The President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some highlights of the enacted provisions are as follows:

New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.

The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repealed the 60-day designation requirement for certain types of pay-through income and gains.

Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.

Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.

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supplemental data

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

Proxy Voting Policy and Proxy Voting Records

A description of the policies and procedures that the Trust uses to determine how to vote proxies related to portfolio securities is available (i) without charge, upon request, by calling 800-858-6127 and (ii) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information regarding how each Fund voted proxies related to securities held during the most recent 12 month period ended June 30 is (i) available without charge, upon request, by calling 800-858-6127; (ii) on the Funds’ website at http://www.newcovenantfunds.com and (iii) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Form N-Q Disclosure

The Trust files its complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Q is available on the SEC’s website at http://www.sec.gov. The Trust’s Form N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. This information is also available, without charge, by calling toll-free 1-877-835-4531.

Shareholder Report Disclosure

A Special Meeting of Shareholders (the “Meeting”) took place on August 13, 2010, to elect three new Trustees to the Board (David Hinks, Ellen L. Taylor and Joy Douglas Strome) and to re-elect six current Trustees of the Board. All Trust shareholders of record at the close of business on June, 30, 2010 were entitled to attend or submit proxies. As of the record date, the Trust had 52,729,257 shares outstanding. The results of the voting for each Trustee were as follows:

Nominee	For Votes		Votes Withheld
Gail Duree		40,099,147		6,576
Henry H. Gardiner		40,098,675		7,048
Elinor K. Hite		40,035,563		70,160
William C. Lauderbach		40,035,314		70,409
Robert E. Leech		40,001,690		104,033
Samuel W. McNairy		40,036,780		68,944
David C. Hinks		40,097,941		7,782
Ellen L. Taylor		40,099,073		6,650
Joy Douglas Strome		40,098,918		6,805

The nine Trustees elected at the August 13, 2010 Special Shareholder Meeting constitute the entire Board of Trustees of the Trust.

Additional Fund Information - Hypothetical Cost of Investing

As a shareholder of the New Covenant Funds, you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the New Covenant 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 July 1, 2010 through December 31, 2010.

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.

	Beginning		Ending		Expenses Paid		Expense Ratio
	Account Value		Account Value		During Period*		During Period**
	7/1/10		12/31/10		7/1/10 - 12/31/10		7/1/10 - 12/31/10
Growth Fund		$1,000.00		$1239.29		$6.72		1.19%
Income Fund		1,000.00		1016.50		4.37		0.86%
Balanced Growth Fund		1,000.00		1151.80		1.19		0.22%
Balanced Income Fund		1,000.00		1094.20		1.32		0.25%

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on each of the New Covenant Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual

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supplemental data

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

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.

	Beginning		Ending		Expenses Paid		Expense Ratio
	Account Value		Account Value		During Period*		During Period**
	7/1/10		12/31/10		7/1/10 - 12/31/10		7/1/10 - 12/31/10
Growth Fund		$1,000.00		$1019.21		$6.06		1.19%
Income Fund		1,000.00		1020.87		4.38		0.86%
Balanced Growth Fund		1,000.00		1024.10		1.12		0.22%
Balanced Income Fund		1,000.00		1023.95		1.28		0.25%

*	Expenses are equal to the average account value times the Fund’s annualized expense ratio (reflecting fee waivers in effect) multiplied by 181/184 (to reflect the one-half year period)
**	Annualized.

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supplemental data

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

Approval of the Continuation of the Investment Advisory and Sub-Advisory Agreements

During the semi-annual period ended December 31, 2010, the Board of Trustees of the New Covenant Funds (the “Trust”) was called upon at a meeting held on November 15, 2010 to take action with respect to: (i) amended fee schedules for the Amended and Restated Investment Advisory Agreement (the “Advisory Agreement”) with One Compass Advisors (the “Adviser”), (ii) a new Sub-Advisory Agreement for the New Covenant Growth Fund (the “Growth Fund”) and (iii) amendments to the fee schedules for one Sub-Advisory Agreement for the Growth Fund and both Sub-Advisory Agreements relating to the New Covenant Income Fund (the “Income Fund”). As described more fully below, the Board was called upon: (i) to approve a reduced fee schedule for both the Growth Fund and the Income Fund contained in the Advisory Agreement; (ii) to approve the termination of the Sub-Advisory Agreement with Wellington Management Company, LLP (“Wellington”) and the approval of a new Sub-Advisory Agreement with Brockhouse & Cooper International Inc. (“Brockhouse Cooper”) with respect to the portion of the Growth Fund’s portfolio managed by Wellington; and (iii) to approve amended fee schedules for the Sub-Advisory Agreements with Robert W. Baird & Co. Incorporated (“Baird”) and EARNEST Partners, LLC (“Earnest”), each a “Sub-Adviser” for the Income Fund, and an amended fee schedule for the Sub-Advisory Agreement with Sound Shore Management, Inc. (“Sound Shore”), a Sub-Adviser for the Growth Fund.

The relevant provisions of the Investment Company Act of 1940, as amended (the “1940 Act”), specifically provide that it is the duty of the Board to request and evaluate such information as the Board determines is reasonably necessary to allow the Board to properly consider the terms of any investment advisory agreement, which includes a sub-advisory agreement, and it is the duty of the Adviser and any Sub-Advisers to furnish the Trustees with such information as is responsive to their request. Accordingly, in determining whether to approve the amendments to the Advisory Agreement and certain Sub-Advisory Agreements as noted above, and the new Sub-Advisory Agreement with Brockhouse Cooper, the Board of Trustees requested, and the Adviser and Brockhouse Cooper provided, information and data relevant to the Board’s consideration. The Board noted that it had recently considered the Adviser’s, Baird’s, Earnest’s and Sound Shore’s capabilities and the terms of the Advisory Agreement and these Sub-Advisory Agreements at a meeting held on May 16-17, 2010, and had determined to renew the Advisory Agreement and the Sub-Advisory Agreements with Baird, Earnest and Sound Shore for an additional one-year term ending June 30, 2011. The Board noted that, although it had approved the continuation of the Sub-Advisory Agreement with Wellington at the May 2010 meeting, Wellington had informed the Adviser that it was discontinuing the strategy used to manage its portion of the Growth Fund’s portfolio, and that the Adviser had therefore retained Brockhouse & Cooper, Inc. (“BCI”), an affiliate of Brockhouse Cooper, to assist it in conducting a search to find a replacement sub-adviser. The Board noted that the Adviser was not in a position at the time of the November 15, 2010 meeting to make a recommendation for a replacement for Wellington, but since Wellington had provided notice that it would no longer provide advisory services in the core growth strategy sought by the Adviser for the Growth Fund, the Adviser had recommended that the Board approve the Sub-Advisory Agreement with Brockhouse Cooper pursuant to which Brockhouse Cooper would provide temporary asset management services until a replacement sub-adviser was identified by the Adviser and approved by the Board.

The Trustees noted that, at the May 2010 meeting, they had reviewed materials regarding the investment performance of the Growth Fund, the Income Fund, the Balanced Growth Fund and the Balanced Income Fund (each a “Fund”) and information regarding the fees and expenses of each Fund, as compared to other similar mutual funds, including other mutual funds having socially responsible investment (“SRI”) mandates. As part of their deliberations, the Trustees also considered and relied upon the information about each Fund that had been provided to them throughout the year in connection with their regular Board meetings at which they engage in the ongoing oversight of the Funds and their operations. In connection with its decisions regarding the amended fee schedules for the Advisory Agreement and the Sub-Advisory Agreements with Baird, Earnest and Sound Shore, the Board determined that much of its analysis at the May 2010 meeting applied to its review and consideration of the amended Agreements. Accordingly, the Board considered its prior analysis and supplemented it with its considerations regarding the revised fee schedules proposed for both the Growth Fund and the Income Fund, in conjunction with the proposed termination of the Expense Limitation Agreement for each Fund, along with the new Sub-Advisory Agreement with Brockhouse Cooper and the reduced fee schedules to which Baird, Earnest and Sound Shore had agreed. In reviewing these matters, the Board members took into consideration the benefit to the Adviser from implementing reduced sub-advisory fees. Based on the Adviser’s presentation at the November 2010 meeting, the Trustees noted that, after these changes and assuming current asset levels and other expenses of the Funds, the Funds’ expense ratios were not anticipated to increase and, in fact, might decrease somewhat, and that the Adviser’s profitability under the Advisory Agreement could be expected to increase slightly. The Board considered the fact that the Adviser had represented to the Board that neither the level nor the quality of services provided to the Funds by the Adviser, Baird, Earnest and Sound Shore would be reduced under the amended fee schedules. During this process the Independent Trustees were counseled by their own independent legal counsel (as such term is defined in the rules under the 1940 Act).

With respect to the Board’s consideration and approval of the Sub-Advisory Agreement with Brockhouse Cooper, the Board met on November 15, 2010, to consider the approval of the selection of the new Sub-Adviser. At this meeting, upon the recommendation of the Adviser, and in response to the notice received from Wellington regarding its decision to discontinue the investment strategy used for its portion of the Growth Fund’s portfolio, the Board took action to terminate Wellington as a sub-adviser to the Growth Fund. The Board also took into consideration the below-benchmark performance of Wellington in connection with its management of a portion of the Growth Fund’s portfolio and the Board considered the Adviser’s recommendation to retain Brockhouse Cooper to provide temporary asset management services. The Board reviewed information and materials regarding Brockhouse Cooper,

33

supplemental data

NEW COVENANT FUNDS
December 31, 2010 (Unaudited)

including its proposed portfolio management process and the proposed level of fees. The Board also considered the nature, quality and extent of the services to be provided by Brockhouse Cooper. Following their consideration of each of these factors, the Board determined to select Brockhouse Cooper to manage the portion of the Growth Fund’s portfolio previously managed by Wellington.

In connection with their review of the Sub-Advisory Agreement with Brockhouse Cooper, the Trustees noted that their approval was subject to receipt of a favorable compliance report by the Trust’s Chief Compliance Officer on Brockhouse Cooper, which the Board subsequently received at a special meeting of the Board held on December 15, 2010, which was held for the purpose of receiving the Chief Compliance Officer’s report. In addition, the Trustees took into consideration the fee rate to be paid by the Adviser with respect to Brockhouse Cooper’s management of this portion of the Growth Fund’s portfolio, noting that Brockhouse Cooper did not currently provide such services to other registered investment companies, and that the fees payable to Brockhouse Cooper had been negotiated at arm’s length and were to be paid by the Adviser from the investment advisory fee that it receives from the Growth Fund. With respect to the sub-advisory fees payable to Brockhouse Cooper by the Adviser, the Board took note of the fact that these fees were lower than the sub-advisory fees payable by the Adviser to Wellington, which provides a benefit to the Adviser in connection with the fees that the Adviser incurs to operate the Growth Fund. The Board also considered Brockhouse Cooper’s brokerage practices, noting that its affiliated broker/dealer, BCI, was proposed to serve as transition manager for the transfer of portfolio assets in connection with the retention of Brockhouse Cooper as a Sub-Adviser, and that this was a fall-out benefit to Brockhouse Cooper as a result of the commissions that BCI would receive in connection with the portfolio transition process. In reviewing this matter, the Board determined that the amount of affiliated brokerage to be received by BCI was fair and reasonable and that the transactions would be done in accordance with applicable regulatory requirements under the 1940 Act relating to the use of affiliated brokers by investment advisers.

In reaching their conclusion with respect to the approval of the Sub-Advisory Agreement with Brockhouse Cooper, the Trustees did not identify any one single factor as being controlling; rather, the Trustees took note of a combination of factors that influenced their decision-making process. Based upon their review and consideration of these factors and other matters deemed relevant by the Board in reaching an informed business judgment, the Board of Trustees, including a majority of the Independent Trustees, concluded that the terms of the amended Advisory Agreement, amended Sub-Advisory Agreements and the new Sub-Advisory Agreement with Brockhouse Cooper were fair and reasonable in light of the services to be provided and the Board therefore voted to approve the Agreements.

34

Annual/Semi-Annual Report to Shareholders

These reports include financial statements and information about the portfolio of investments for each Fund. The Trust’s Annual Report includes a discussion of the market conditions and investment strategies that significantly affected each Fund’s performance during its last fiscal year.

Statement of Additional Information (SAI)

The SAI contains more detailed information on all aspects of the Funds. It has been filed with the Securities and Exchange Commission and is legally considered to be a part of the prospectus. To request a free copy of the current Annual or Semi-Annual Report, SAI, or to request other information about the Funds, you can visit www. NewCovenantFunds.com or write or call:

New Covenant Funds

Box 701

Milwaukee, WI 53201-0701

877-835-4531

Text-only versions of Fund documents can be viewed online or downloaded from the SEC’s EDGAR database at http://www.sec.gov.

You may review and copy the SAI and other information about the Funds by visiting SEC’s Public Reference Room in Washington, D.C. You can obtain information about the Public Reference Room by calling the SEC at 202-551-8090. Copies of this information also may be obtained, upon payment of a duplicating fee, by electronic request at publicinfo@sec.gov, or by writing to the Public Reference Section of the SEC, Washington, D.C. 20549-0102.

This report is authorized for distribution only if preceded by a current prospectus. Shares of New Covenant Funds are distributed by New Covenant Funds Distributors, Inc., 200 East Twelfth Street, Jeffersonville, IN 47130.

SEC File # 811-09025

NCF 14-10-20

Item 2. Code of Ethics.

Not applicable for semi-annual reports

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

Not Applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

Not Applicable.

1

Item 11. Controls and Procedures.

(a) The Registrant’s [President/Chief Executive Officer] and [Treasurer/Chief Financial Officer] have reviewed the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not applicable.
	(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
	(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

2

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.

New Covenant Funds
By	/s/ Michael Ricks
	Michael Ricks, Treasurer
Date	3/2/11

     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	/s/Robert E. Leech
	Robert E. Leech, President
Date	2/28/11

By	/s/ Michael Ricks
	Michael Ricks, Treasurer
Date	3/2/11

3