PART
A
PROSPECTUS
Table
of Contents:
2
Investment Objective
Current
income and preservation of capital,
consistent with Islamic principles. Current income is its
primary objective.
Fees and Expenses
This
section describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Income Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the table and example below.
Shareowner Fees
None.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment)
Income
Fund |
Investor
Shares |
Institutional
Shares |
Management
Fees |
0.75% |
0.75% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.02% |
0.03% |
Total
Annual Fund Operating Expenses |
1.02% |
0.78% |
Example
The
example below is intended to help investors compare the cost of investing in
shares of the Income Fund with the cost of investing in other mutual funds.
The
example assumes an investor invests $10,000 in shares of the Income Fund for the
time periods indicated and then redeems all shares at the end of those periods.
The example also assumes that the investment has a 5% return each year and that
the Fund’s operating expenses remain the same. Although actual costs may be
higher or lower, based on these assumptions an investor’s expenses would be:
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor Shares |
$104 |
$325 |
$563 |
$1,248 |
Institutional Shares |
$80 |
$249 |
$433 |
$966 |
Portfolio Turnover
The
Income Fund may have transaction costs, such as commissions, when it buys and
sells securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in taxable
distributions. Personal income taxes, which are not reflected in annual fund
operating expenses or in the example, affect your after-tax returns. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 7.86% of the
average value of its portfolio.
Principal Investment Strategies
The
Income Fund invests primarily in dividend-paying common stocks, including
foreign stocks. Investment decisions are made in accordance with Islamic
principles. Generally, Islamic principles require that investors share in profit
and loss, that they receive no usury or interest, and that they do not invest in
a business that is prohibited by Islamic principles. Some of the businesses not
permitted are alcohol, pornography, insurance, gambling, pork processing, and
interest-based banks or finance associations.
The
Income Fund does not make any investments that pay interest. Islamic principles
discourage speculation, and the Fund tends to hold investments for several
years.
The
Income Fund diversifies its investments across industries and companies, and
principally follows a large-cap value investment style. Common stock purchases
are restricted to dividend-paying companies. The Fund seeks companies
demonstrating both Islamic and sustainable characteristics.
The
Fund’s adviser (Saturna Capital Corporation) considers issuers with sustainable
characteristics to be those issuers that are more established, consistently
profitable, and financially strong, with robust policies in the areas of the
environment, social responsibility, and corporate governance (“ESG”). The Fund’s
adviser employs a sustainable rating system based on its own, as well as
third-party, data to identify issuers believed to present low risks in ESG. The
Fund’s adviser also uses negative screening to exclude security issuers
primarily engaged in higher ESG risk businesses such as alcohol, tobacco,
pornography, weapons, gambling, and fossil fuel extraction.
It
is the policy of the Income Fund, under normal circumstances, to invest at least
80% of its total net assets in income-producing securities, primarily
dividend-paying common stocks.
Principal Risks of Investing
Market
risk: The value of
Income Fund shares rises and falls as the value of the securities in which the
Fund invests goes up and down. Consider investing in the Fund only if you are willing
to accept the risk that you may lose money. Fund share
prices, yields, and total returns will change with the fluctuations in the
securities markets as well as the fortunes of the industries and companies in
which the Fund invests.
Investment
strategy risk: Islamic
principles restrict the Income Fund’s ability to invest in certain market
sectors, such as financial companies and conventional fixed-income securities.
The adviser (Saturna Capital Corporation) believes that Islamic and sustainable
investing may mitigate security-specific risks, but the screens used in
connection with these strategies reduce the investable universe, which may limit
investment opportunities and adversely affect the Fund’s performance. Because
Islamic principles preclude the use of interest-paying instruments, cash
reserves do not earn income.
3
Equity
securities risk: Equity securities may experience
significant volatility in response to economic or market conditions or adverse
events that affect a particular industry, sector, or company. Larger companies
may have slower rates of growth as compared to smaller, faster-growing
companies. Smaller companies may have more limited financial resources,
products, or services, and tend to be more sensitive to changing economic or
market conditions.
Foreign
investing risk: The
Income Fund may invest in securities that are not traded in the United States
when market conditions or investment opportunities arise that, in the judgment
of the adviser, warrant such investment. Investments in the securities of
foreign issuers may involve risks in addition to those normally associated with
investments in the securities of US issuers. All foreign investments are subject
to risks of: (1) foreign political and economic instability; (2) adverse
movements in foreign exchange rates; (3) currency devaluation; (4) the
imposition or tightening of exchange controls or other limitations on
repatriation of foreign capital; (5) changes in foreign governmental attitudes
toward private investment, including potential nationalization, increased
taxation, or confiscation of assets; and (6) differing reporting, accounting,
and auditing standards of foreign countries.
Performance
Annual Total Return
The
following bar chart presents the calendar year total returns of the Income Fund
Investor Shares before taxes. The bar chart provides an indication of the risks
of investing in the Fund by showing changes in performance from year to year.
A fund’s past performance (before
and after taxes) is not a guarantee of how a fund will perform in the
future.
Performance
data current to the most recent month-end and quarter-end are available on www.amanafunds.com.
Year |
Return |
2013 |
29.72% |
2014 |
9.13% |
2015 |
-2.86% |
2016 |
9.34% |
2017 |
21.69% |
2018 |
-5.22% |
2019 |
25.28% |
2020 |
13.95% |
2021 |
22.51% |
2022 |
-8.72% |
Best
Quarter |
Q2
2020 Jun. 30,
2020 |
18.47% |
Worst
Quarter |
Q1
2020 Mar. 31,
2020 |
-18.01% |
|
The
year-to-date
return as of the most recent calendar
quarter (which ended June 30,
2023) was 10.70%.
|
4
Average Annual Total Returns
The table below
presents the average annual returns for the Income Fund and provides an
indication of the risks of investing in the Fund by showing how the Fund’s
average annual returns for 1, 5, and 10 years and for the life of the Fund
compare to those of a broad-based market index.
|
|
|
|
|
Periods
ended December 31,
2022 |
|
1
Year |
5
Years |
10
Years |
Life
of Fund |
Income
Fund Investor Shares (AMANX) |
Return
before taxes |
-8.72% |
8.63% |
10.72% |
8.85%1 |
Return
after taxes on distibutions |
-10.24% |
7.09% |
9.48% |
7.92%1 |
Return
after taxes on distibutions and sale of Fund shares |
-4.18 |
6.37% |
8.64% |
6.67%1 |
Income
Fund Institutional Shares (AMINX) |
Return
before taxes |
-8.51% |
8.87% |
n/a |
9.73%2 |
S&P
500 Index (reflects no deduction for fees, expenses, or
taxes) |
|
-18.11% |
9.41% |
12.56% |
11.35%2 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of any state or local
taxes. After-tax returns illustrated
are only for the Investor Shares; after-tax returns for Institutional Shares
will vary. Actual after-tax returns
depend on an investor’s tax situation and likely differ from those illustrated.
After-tax illustrations are not relevant to retirement plans, corporations,
trusts, or other investors that are taxed at special
rates. Return after taxes on distributions and sale of
Fund shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
Investment
Adviser
Saturna
Capital Corporation is the Income Fund’s investment adviser.
Portfolio
Managers
Since
April 2020, Mr. Monem A. Salam MBA, executive vice president and portfolio
manager at Saturna Capital Corporation, has been primarily responsible for the
day-to-day management of the Income Fund. From July 2018 until April 2020, and
previously from 2008 to 2012, he was a deputy portfolio
manager
for the Fund. Since 2012, Mr. Scott F. Klimo CFA®, chief investment
officer at Saturna Capital Corporation, has been a deputy portfolio manager for
the Fund. Since April 2020, Mr. Bryce R. Fegley MS, CFA®,
CIPM®, a senior investment analyst and portfolio manager at Saturna
Capital Corporation, has been a deputy portfolio manager for the Fund.
Purchase
and Sale of Fund Shares
You
may open an account and purchase Income Fund Investor Shares by sending a
completed application, a photocopy of a government-issued identity document, and
a check for $100 or more payable to the Amana Income Fund.
Income
Fund Institutional Shares are available with a minimum investment of $100,000.
Shareowners
may purchase additional shares at any time in minimum amounts of $25.
Shareowners
may redeem shares of their investment on any business day by these methods:
Written
request |
Write: |
Amana
Mutual Funds |
|
Box
N |
|
Bellingham,
WA 98227-0596 |
Or
Fax: |
360-734-0755 |
Telephone
request |
Call:
|
888-732-6262
or 360-734-9900 |
Online |
Visit: |
www.amanafunds.com |
Tax
Information
Distributions
you receive from the Fund may be taxed as ordinary income, qualified dividend
income, or capital gains.
Financial
Intermediary Compensation
If
you purchase the Income Fund through a broker-dealer or other financial
intermediary (such as a bank or investment adviser), the Fund and its related
companies may pay the intermediary for the sale of shares and related services.
These payments may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your salesperson to recommend
the Fund over another investment. Ask your salesperson or visit your
broker-dealer or other financial intermediary’s website for more information.
5
Investment Objective
Long-term
capital growth, consistent with Islamic principles.
Fees and Expenses
This
section describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Growth Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the table and example below.
Shareowner Fees
None.
Annual Fund
Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
Growth
Fund |
Investor
Shares |
Institutional
Shares |
Management
Fees |
0.64% |
0.64% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.02% |
0.03% |
Total
Annual Fund Operating Expenses |
0.91% |
0.67% |
Example
The
example below is intended to help investors compare the cost of investing in
shares of the Growth Fund with the cost of investing in other mutual funds.
The
example assumes an investor invests $10,000 in shares of the Growth Fund for the
time periods indicated and then redeems all shares at the end of those periods.
The example also assumes that the investment has a 5% return each year and that
the Fund’s operating expenses remain the same. Although actual costs may be
higher or lower, based on these assumptions an investor’s expenses would be:
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor Shares |
$93 |
$290 |
$504 |
$1,120 |
Institutional Shares |
$68 |
$214 |
$373 |
$835 |
Portfolio Turnover
The
Growth Fund may have transaction costs, such as commissions, when it buys and
sells securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in taxable
distributions. Personal income taxes, which are not reflected in annual fund
operating expenses or in the example, affect your after-tax returns. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 6.29% of the
average value of its portfolio.
Principal Investment Strategies
The
Growth Fund invests only in common stocks, including foreign stocks. Investment
decisions are made in accordance with Islamic principles. Generally, Islamic
principles require that investors share in profit and loss, that they receive no
usury or interest, and that they do not invest in a business that is prohibited
by Islamic principles. Some of the businesses not permitted are alcohol,
pornography, insurance, gambling, pork processing, and interest-based banks or
finance associations.
The
Growth Fund does not make any investments that pay interest. Islamic principles
discourage speculation, and the Fund tends to hold investments for several
years.
The
Growth Fund diversifies its investments across industries and companies, and
principally follows a large-cap value investment approach. As a result, the Fund
favors companies expected to grow earnings and stock prices faster than the
economy. The Fund may also invest in smaller and less seasoned companies. The
Fund seeks companies demonstrating both Islamic and sustainable
characteristics.
The
Fund’s adviser (Saturna Capital Corporation) considers issuers with sustainable
characteristics to be those issuers that are more established, consistently
profitable, and financially strong, with robust policies in the areas of the
environment, social responsibility, and corporate governance (“ESG”). The Fund’s
adviser employs a sustainable rating system based on its own, as well as
third-party, data to identify issuers believed to present low risks in ESG. The
Fund’s adviser also uses negative screening to exclude security issuers
primarily engaged in higher ESG risk businesses such as alcohol, tobacco,
pornography, weapons, gambling, and fossil fuel extraction.
It
is the policy of the Growth Fund, under normal circumstances, to invest at least
80% of total net assets in common stocks, including non-US securities. The
Fund’s adviser (Saturna Capital Corporation) selects investments primarily on
past earnings and revenue growth rates, and the expectation of increases in
earnings and share price.
Principal Risks of Investing
Market
risk: The value of
Growth Fund shares rises and falls as the value of the stocks in which the Fund
invests goes up and down. Consider investing in the Fund only if you are willing
to accept the risk that you may lose money. Fund share
prices, yields, and total returns will change with the fluctuations in the
securities markets as well as the fortunes of the industries and companies in
which the Fund invests.
Investment
strategy risk: Islamic
principles restrict the Growth Fund’s ability to invest in certain market
sectors, such as financial companies and conventional fixed-income securities.
The adviser (Saturna Capital Corporation) believes that Islamic and sustainable
investing may mitigate security-specific risks, but the screens used in
connection with these strategies reduce the
6
investable
universe, which may limit investment opportunities and adversely affect the
Fund’s performance. Because Islamic principles preclude the use of
interest-paying instruments, cash reserves do not earn income.
Equity
securities risk:
Equity securities may experience significant volatility in response to economic
or market conditions or adverse events that affect a particular industry,
sector, or company. Larger companies may have slower rates of growth as compared
to smaller, faster-growing companies, and at times may be out of favor with
investors. Smaller companies may have more limited financial resources,
products, or services, and tend to be more sensitive to changing economic or
market conditions. The Fund also tends to favor growth stocks, which tend to
trade based on future earnings expectations, and may be more volatile than
slower-growing value stocks, especially when market expectations are not met.
Small-cap
risk: The smaller and
less seasoned companies that may be in the Growth Fund have a greater risk of
price volatility. Growth stocks, which can be priced on future expectations
rather than current results, may decline substantially when expectations are not
met or general market conditions weaken.
Foreign
investing risk: The
Growth Fund may invest in securities that are not traded in the United States
when market conditions or investment opportunities arise that, in the judgment
of the adviser, warrant such investment. Investments in the securities of
foreign issuers may involve risks in addition to those normally associated with
investments in the securities of US issuers. All foreign investments are subject
to risks of: (1) foreign political and economic instability; (2) adverse
movements in foreign exchange rates; (3) currency devaluation; (4) the
imposition or tightening of exchange controls or other limitations on
repatriation of foreign capital; (5) changes in foreign governmental attitudes
toward private investment, including potential nationalization, increased
taxation, or confiscation of assets; and (6) differing reporting, accounting,
and auditing standards of foreign countries.
Sector
Risk: From time to
time, based on market or economic conditions, the Fund may have significant
positions in one or more sectors of the market. To the extent the Fund invests
more heavily in particular sectors, its performance will be especially sensitive
to developments that significantly affect those sectors. Individual sectors may
be more volatile, and may perform differently, than the broader market. The
industries that constitute a sector may all react in the same way to economic,
political, or regulatory events.
Performance
Annual Total Return
The
following bar chart presents the calendar year total returns of the Growth Fund
Investor Shares before taxes. The bar chart provides an indication of the risks
of investing in the Fund by showing changes in performance from year to year.
A fund’s past performance (before
and after taxes) is not a guarantee of how a fund will perform in the
future.
Performance
data current to the most recent month-end and quarter-end are available on www.amanafunds.com.
Year |
Return |
2013 |
22.83% |
2014 |
14.03% |
2015 |
-0.42% |
2016 |
7.62% |
2017 |
28.98% |
2018 |
2.44% |
2019 |
33.07% |
2020 |
32.86% |
2021 |
31.53% |
2022 |
-19.41% |
Best
Quarter |
Q2
2020 Jun. 30,
2020 |
22.63% |
Worst
Quarter |
Q2
2022 Jun. 30,
2022 |
-14.52% |
|
The
year-to-date
return as of the most recent calendar
quarter (which ended June 30,
2023) was 15.59%.
|
7
Average Annual Total Returns
The table below
presents the average annual returns of the Growth Fund and provides an
indication of the risks of investing in the Fund by showing how the Fund’s
average annual returns for 1, 5, and 10 years compare to those of a broad-based
market index.
|
|
|
|
|
Periods
ended December 31, 2022 |
|
1
Year |
5
Years |
10
Years |
Life
of Fund |
Growth
Fund Investor Shares (AMAGX) |
Return
before taxes |
-19.41% |
13.93% |
14.03% |
11.32%1 |
Return
after taxes on distibutions |
-20.05% |
13.11% |
12.61% |
10.75%1 |
Return
after taxes on distibutions and sale of Fund shares |
-11.07% |
12.90% |
11.62% |
10.31%1 |
Growth
Fund Institutional Shares (AMIGX) |
Return
before taxes |
-19.22% |
14.20% |
n/a |
13.95%2 |
S&P
500 Index (reflects no deduction for fees, expenses, or
taxes) |
|
-18.11% |
9.14% |
12.56% |
11.35%2 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of any state or local
taxes. After-tax returns illustrated
are only for the Investor Shares; after-tax returns for Institutional Shares
will vary. Actual after-tax returns
depend on an investor’s tax situation and likely differ from those illustrated.
After-tax illustrations are not relevant to retirement plans, corporations,
trusts, or other investors that are taxed at special
rates. Return after taxes on distributions and sale of
Fund shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
Investment
Adviser
Saturna
Capital Corporation is the Growth Fund’s investment adviser.
Portfolio
Managers
Since
April 2020, Mr. Scott F. Klimo CFA®, chief investment officer at
Saturna Capital Corporation, has been primarily responsible for the day-to-day
management of the Growth Fund. From 2012 until April 2020, he was a deputy
portfolio manager for the Fund. Since July 2018, and previously from 2008 to
2012, Mr. Monem
A.
Salam MBA, executive vice president and portfolio manager at Saturna Capital
Corporation, has been a deputy portfolio manager for the Fund. Since April 2020,
Mr. Christopher E. Paul MBA, CFA®, a senior investment analyst and
portfolio manager at Saturna Capital Corporation, has been a deputy portfolio
manager for the Fund.
Purchase
and Sale of Fund Shares
You
may open an account and purchase Growth Fund Investor Shares by sending a
completed application, a photocopy of a government-issued identity document, and
a check for $100 or more payable to the Amana Growth Fund.
Growth
Fund Institutional Shares are available with a minimum investment of $100,000.
Shareowners
may purchase additional shares at any time in minimum amounts of $25.
Shareowners
may redeem shares of their investment on any business day by these methods:
Written
request |
Write: |
Amana
Mutual Funds |
|
Box
N |
|
Bellingham,
WA 98227-0596 |
Or
Fax: |
360-734-0755 |
Telephone
request |
Call:
|
888-732-6262
or 360-734-9900 |
Online |
Visit: |
www.amanafunds.com |
Tax
Information
Distributions
you receive from the Fund may be taxed as ordinary income, qualified dividend
income, or capital gains.
Financial
Intermediary Compensation
If
you purchase the Growth Fund through a broker-dealer or other financial
intermediary (such as a bank or investment adviser), the Fund and its related
companies may pay the intermediary for the sale of shares and related services.
These payments may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your salesperson to recommend
the Fund over another investment. Ask your salesperson or visit your
broker-dealer or other financial intermediary’s website for more information.
8
Investment Objective
Long-term
capital growth, consistent with Islamic principles.
Fees and Expenses
This
section describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Developing World Fund. You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which are not
reflected in the table and example below.
Shareowner Fees
None.
Annual Fund
Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
Developing
World Fund |
Investor
Shares |
Institutional
Shares |
Management
Fees |
0.80% |
0.80% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.17% |
0.21% |
Total
Annual Fund Operating Expenses |
1.22% |
1.01% |
Example
The
example below is intended to help investors compare the cost of investing in
shares of the Developing World Fund with the cost of investing in other mutual
funds.
The
example assumes an investor invests $10,000 in shares of the Developing World
Fund for the time periods indicated and then redeems all shares at the end of
those periods. The example also assumes that the investment has a 5% return each
year and that the Fund’s operating expenses remain the same. Although actual
costs may be higher or lower, based on these assumptions an investor’s expenses
would be:
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor Shares |
$124 |
$387 |
$670 |
$1,477 |
Institutional Shares |
$103 |
$322 |
$558 |
$1,236 |
Portfolio Turnover
The
Developing World Fund may have transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in taxable
distributions. Personal income taxes, which are not reflected in annual fund
operating expenses or in the example, affect your after-tax returns. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 5.69% of the
average value of its portfolio.
Principal Investment Strategies
Under
normal circumstances, the Developing World Fund invests at least 80% of total
net assets in common stocks of companies with significant exposure (50% or more
of production assets, or revenues) to countries with developing economies and/or
markets. Investment decisions are made in accordance with Islamic principles.
Generally, Islamic principles require that investors share in profit and loss,
that they receive no usury or interest, and that they do not invest in a
business that is prohibited by Islamic principles. Some of the businesses not
permitted are alcohol, pornography, insurance, gambling, pork processing, and
interest-based banks or finance associations.
The
Developing World Fund does not make any investments that pay interest. Islamic
principles discourage speculation, and the Fund tends to hold investments for
several years.
The
Developing World Fund diversifies its investments across the industries,
companies, and countries of the developing world, and principally follows a
large-cap value investment style. The Fund seeks companies demonstrating both
Islamic and sustainable characteristics.
The
Fund’s adviser (Saturna Capital Corporation) considers issuers with sustainable
characteristics to be those issuers that are more established, consistently
profitable, and financially strong, with robust policies in the areas of the
environment, social responsibility, and corporate governance (“ESG”). The Fund’s
adviser employs a sustainable rating system based on its own, as well as
third-party, data to identify issuers believed to present low risks in ESG. The
Fund’s adviser also uses negative screening to exclude security issuers
primarily engaged in higher ESG risk businesses such as alcohol, tobacco,
pornography, weapons, gambling, and fossil fuel extraction.
In
determining whether a country is part of the developing world, the Fund’s
adviser (Saturna Capital Corporation) will consider such factors as the
country’s per capita gross domestic product, the percentage of the country’s
economy that is industrialized, market capitalization as a percentage of gross
domestic product, the overall regulatory environment, and limits on foreign
ownership and restrictions on repatriation of initial capital or income.
Through
reference to data provided by various globally recognized organizations such as
the International Monetary Fund, The World Bank, and the Organization for
Economic Cooperation and Development, the adviser maintains a list of countries
it considers to have developing economies and/or markets. The list, which
changes over time, currently includes:
Argentina,
Bahrain, Brazil, Chile, China, Colombia, Croatia, Czech Republic, Egypt,
Ecuador, Greece, Hungary, India, Indonesia, Jordan, Kuwait, Malaysia, Malta,
Mexico, Oman, Panama, Peru, Philippines, Poland, Qatar, Saudi Arabia, Slovenia,
South Africa, South Korea, Taiwan, Thailand, Turkey, Vietnam, and United Arab
Emirates.
9
Amana
Developing World Fund |
By
allowing investments in companies headquartered in more advanced economies yet
having the majority of production assets or revenues in the developing world,
the Developing World Fund seeks to reduce its foreign investing risk.
Principal Risks of Investing
Market
risk: The value of
Developing World Fund shares rises and falls as the value of the stocks in which
the Fund invests goes up and down. Consider investing in the Fund only if you are willing
to accept the risk that you may lose money. Fund share
prices, yields, and total returns will change with the fluctuations in the
securities and currency markets as well as the fortunes of the industries and
companies in which the Fund invests.
Investment
strategy risk: Islamic
principles restrict the Developing World Fund’s ability to invest in certain
market sectors, such as financial companies and conventional fixed-income
securities. The adviser believes that Islamic and sustainable investing may
mitigate security-specific risks, but the screens used in connection with these
strategies reduce the investable universe which may limit investment
opportunities and adversely affect the Fund’s performance. Because Islamic
principles preclude the use of interest-paying instruments, cash reserves do not
earn income.
Equity
securities risk:
Equity securities may experience significant volatility in response to economic
or market conditions or adverse events that affect a particular industry,
sector, or company. Larger companies may have slower rates of growth as compared
to smaller, faster-growing companies. Smaller companies may have more limited
financial resources, products, or services, and tend to be more sensitive to
changing economic or market conditions.
Foreign
investing risk: The
Developing World Fund involves risks not typically associated with investing in
US securities. Investments in the securities of foreign issuers may involve
risks in addition to those normally associated with investments in the
securities of US issuers. All foreign investments are subject to risks of: (1)
foreign political and economic instability; (2) adverse movements in foreign
exchange rates; (3) currency devaluation; (4) the imposition or tightening of
exchange controls or other limitations on repatriation of foreign capital; (5)
changes in foreign governmental attitudes toward private investment, including
potential nationalization, increased taxation, or confiscation of assets; and
(6) differing reporting, accounting, and auditing standards of foreign
countries.
Developing
world risk: All
foreign investments are subject to risks of: (1) foreign political and economic
instability; (2) adverse movements in foreign exchange rates; (3) currency
devaluation; (4) the imposition or tightening of exchange controls or other
limitations on repatriation of foreign capital; (5) changes in foreign
governmental attitudes toward private investment, including potential
nationalization, increased taxation, or confiscation of assets; and (6)
differing reporting, accounting, and auditing standards of foreign countries. In
developing markets, these risks are magnified by less mature political systems
and weaker corporate governance standards than typically found in the developed
world.
Performance
Annual Total Return
The
following bar chart presents the calendar year total returns of the Developing
World Fund Investor Shares before taxes. The bar chart provides an indication of
the risks of investing in the Fund by showing changes in performance from year
to year. A fund’s past performance (before
and after taxes) is not a guarantee of how a fund will perform in the
future.
Performance
data current to the most recent month-end and quarter-end are available on www.amanafunds.com.
Year |
Return |
2013 |
-0.65% |
2014 |
-0.76% |
2015 |
-17.02% |
2016 |
0.97% |
2017 |
21.39% |
2018 |
-15.56% |
2019 |
18.68% |
2020 |
21.26% |
2021 |
7.31% |
2022 |
-17.59% |
Best
Quarter |
Q4
2020 Dec. 31,
2020 |
19.46% |
Worst
Quarter |
Q1
2020 Mar. 31,
2020 |
-17.50% |
|
The
year-to-date
return as of the most recent calendar
quarter (which ended June 30,
2023) was 7.98%.
|
10
Amana
Developing World Fund |
Average Annual Total Returns
The table below
presents the average annual returns for the Developing World Fund and provides
an indication of the risks of investing in the Fund by showing how the Fund’s
average annual returns for 1, 5, and 10 years and for the life of the Fund
compare to those of a broad-based market index.
|
|
|
|
|
Periods
ended December 31,
2022 |
|
1
Year |
5
Years |
10
Years |
Life
of Fund |
Developing
World Fund Investor Shares (AMDWX) |
Return
before taxes |
-17.59% |
1.45% |
0.90% |
1.19%1 |
Return
after taxes on distibutions |
-17.89% |
1.28% |
0.78% |
1.09%1 |
Return
after taxes on distibutions and sale of Fund shares |
-10.38% |
1.28% |
0.78% |
1.09%1 |
Developing
World Fund Institutional Shares (AMIDX) |
Return
before taxes |
-17.44% |
1.62% |
n/a |
1.01%2 |
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses,
or taxes) |
|
-20.09% |
-1.39% |
1.44% |
2.84%2 |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of any state or local
taxes. After-tax returns illustrated
are only for the Investor Shares; after-tax returns for Institutional Shares
will vary. Actual after-tax returns
depend on an investor’s tax situation and likely differ from those illustrated.
After-tax illustrations are not relevant to retirement plans, corporations,
trusts, or other investors that are taxed at special
rates. Return after taxes on distributions and sale of
Fund shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
Investment
Adviser
Saturna
Capital Corporation is the Developing World Fund’s investment adviser.
Portfolio
Managers
Since
April 2020, Mr. Monem A. Salam MBA, executive vice president and portfolio
manager at Saturna Capital Corporation, has been primarily responsible for the
day-to-day management of the Developing World Fund. From September 2017 until
April 2020, and previously from 2009 to 2012, he was a deputy portfolio manager
for the Fund. Since April 2020, Mr. Scott
F.
Klimo CFA®, chief investment officer at Saturna Capital Corporation,
has been a deputy portfolio manager for the Fund. From 2014 until April 2020, he
was portfolio manager for the Fund. Since April 2020, Mr. Levi Stewart Zurbrugg
MBA, CFA®, CPA®, a senior investment analyst and portfolio
manager at Saturna Capital Corporation, has been a deputy portfolio manager for
the Fund.
Purchase
and Sale of Fund Shares
You
may open an account and purchase Developing World Fund Investor Shares by
sending a completed application, a photocopy of a government-issued identity
document, and a check for $100 or more payable to the Amana Developing World
Fund.
Developing
World Fund Institutional Shares are available with a minimum investment of
$100,000.
Shareowners
may purchase additional shares at any time in minimum amounts of $25.
Shareowners
may redeem shares of their investment on any business day by these methods:
Written
request |
Write: |
Amana
Mutual Funds |
|
Box
N |
|
Bellingham,
WA 98227-0596 |
Or
Fax: |
360-734-0755 |
Telephone
request |
Call:
|
888-732-6262
or 360-734-9900 |
Online |
Visit: |
www.amanafunds.com |
Tax
Information
Distributions
you receive from the Fund may be taxed as ordinary income, qualified dividend
income, or capital gains.
Financial
Intermediary Compensation
If
you purchase the Developing World Fund through a broker-dealer or other
financial intermediary (such as a bank or investment adviser), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your salesperson to recommend
the Fund over another investment. Ask your salesperson or visit your
broker-dealer or other financial intermediary’s website for more information.
11
Investment Objective
Capital
preservation and current income, consistent
with Islamic principles. Capital preservation is its
primary objective.
Fees and Expenses
This
section describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Participation Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the table and example below.
Shareowner Fees
None.
Annual Fund
Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
Participation
Fund |
Investor
Shares |
Institutional
Shares |
Management
Fees |
0.50% |
0.50% |
Distribution
(12b-1) Fees |
0.25% |
None |
Other
Expenses |
0.05% |
0.06% |
Total
Annual Fund Operating Expenses |
0.80% |
0.56% |
Example
The
example below is intended to help investors compare the cost of investing in
shares of the Participation Fund with the cost of investing in other mutual
funds.
The
example assumes an investor invests $10,000 in shares of the Participation Fund
for the time periods indicated and then redeems all shares at the end of those
periods. The example also assumes that the investment has a 5% return each year
and that the Fund’s operating expenses remain the same. Although actual costs
may be higher or lower, based on these assumptions an investor’s expenses would
be:
|
1
Year |
3
Years |
5
Years |
10
Years |
Investor Shares |
$82 |
$255 |
$444 |
$990 |
Institutional Shares |
$57 |
$179 |
$313 |
$701 |
Portfolio Turnover
The
Participation Fund may have transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual Fund operating expenses or in the example, affect your
after-tax returns. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 48.23% of the
average value of its portfolio.
Principal Investment Strategies
Under
normal conditions, the Participation Fund invests at least 80% of its total net
assets in short and intermediate-term Islamic income-producing investments. Up
to 25% of the Fund’s total net assets can be invested in a wholly-owned and
controlled subsidiary (the “Subsidiary”) that also invests in short and
intermediate-term Islamic income-producing investments. The Fund (and the
Subsidiary) invests primarily in notes and certificates issued for payment by
foreign governments, their agencies, and financial institutions in transactions
structured to be in accordance with Islamic principles. Examples of these notes
and certificates include (a) sukuk, which link the returns and cash flows of
financing to the assets purchased, or the returns generated from an asset
purchased, (b) murabaha, which involves a purchase and sale contract, and (c)
wakala, in which accounts are operated under the Islamic finance principle of
wakala (an agency agreement).
These
investments typically involve the purchase of financial certificates
representing investments in tangible assets, project financing, sale and
leaseback arrangements, and the distribution of profits (as opposed to the
payment of interest) related to the underlying asset or project. Unlike an
investment in a bond that represents a promise to pay interest, these
investments involve the sharing of profits and losses in the assets or projects
financed by the Fund’s investment in the notes and certificates. In addition,
the Fund may invest in time deposits with banks that involve underlying purchase
and sale agreements to generate the return on the deposit.
Generally,
Islamic principles require that investors participate in profit and loss, that
they receive no usury or interest, and that they do not invest in a prohibited
business. Some of the businesses not permitted are alcohol, pornography,
insurance, gambling, pork processing, and interest-based banks or finance
associations.
In
accordance with Islamic principles, the Fund shall not purchase conventional
bonds, debentures, or other interest-paying obligations of indebtedness. Islamic
principles discourage speculation, and the Fund tends to hold investments for
several years. Under normal circumstances the Fund maintains a dollar-weighted
average maturity of two to five years.
The
Participation Fund restricts its investments so that at least 50% are
denominated in US dollars, with no more than 10% in any other single currency.
Under
normal conditions, the Fund invests at least 65% of its assets in securities
rated within the four highest grades (Aaa, Aa, A, Baa) by a
nationally-recognized rating agency and may invest up to 35% in unrated and
high-yield notes and certificates, which may be considered equivalent to “junk
bonds.”
The
Subsidiary’s principal investment strategy and principal risks of investing are
identical to those of the Fund, and the Subsidiary invests principally in sukuk,
murabaha, and wakala. The Fund’s investment in the Subsidiary may not exceed 25%
of the value of its total net assets at the end of each quarter
12
of
its taxable year. The Subsidiary, on a consolidated basis, is also subject to
the same requirements relating to liquidity, and the timing and method of
valuation of portfolio investments described elsewhere in this Prospectus and in
the Statement of Additional Information. The Fund is the sole shareowner of the
Subsidiary and does not expect shares of the Subsidiary to be offered or sold to
other investors.
Principal Risks of Investing
Market
risk: The value of
Participation Fund shares rises and falls as the value of the securities in
which the Fund invests goes up and down. Consider investing in the Fund only if you are willing
to accept the risk that you may lose money. Fund share
prices, yields, and total returns will change with the fluctuations in the
securities and currency markets as well as the fortunes of the countries,
industries, and companies in which the Fund invests.
Diversification
and concentration risks: The Fund is non-diversified and
may invest a larger percentage of its assets in fewer issuers, which may cause
the Fund to experience more volatility than diversified funds. In addition, the
Fund may concentrate its investments within the financial services industry and
real estate sector.
Investment
strategy risk: The
Fund’s restricted ability to invest in certain market sectors, such as
non-Islamic financial companies and conventional fixed-income securities, limits
opportunities and may adversely affect the Fund’s performance. Because Islamic
principles preclude the use of interest-paying instruments, cash reserves do not
earn income.
Liquidity
risk: Liquidity risk
exists when particular investments are difficult to sell. Investments by the
Fund in foreign securities and those that are thinly traded, such as lower
quality issuers, tend to involve greater liquidity risk. The market for certain
investments may become illiquid under adverse market or economic conditions.
The
Fund invests substantially in sukuk certificates that are traded outside of the
US or within the US subject to certain trading restrictions which may increase
the liquidity risks associated with the Fund’s investments.
Foreign
investing risk: The
Participation Fund involves risks not typically associated with investing in US
securities. Investments in the securities of foreign issuers may involve risks
in addition to those normally associated with investments in the securities of
US issuers. All foreign investments are subject to risks of: (1) foreign
political and economic instability; (2) adverse movements in foreign exchange
rates; (3) currency devaluation; (4) the imposition or tightening of exchange
controls or other limitations on repatriation of foreign capital; (5) changes in
foreign governmental attitudes toward private investment, including potential
nationalization, increased taxation, or confiscation of assets; and (6)
differing reporting, accounting, and auditing standards of foreign countries.
The risks of foreign investing are generally magnified in the smaller and more
volatile securities markets of the Participation Fund.
Developing
world risk: All
foreign investments are subject to risks of: (1) foreign political and economic
instability; (2) adverse movements in foreign exchange rates; (3) currency
devaluation; (4) the imposition or tightening of exchange controls or other
limitations on repatriation of foreign capital; (5) changes in foreign
governmental attitudes toward private investment, including potential
nationalization, increased taxation, or confiscation of assets; and (6)
differing reporting, accounting, and auditing standards of foreign countries. In
developing markets, these risks are magnified by less mature political systems
and weaker corporate governance standards than typically found in the developed
world.
Sukuk
risk: Sukuk are
specifically structured to adhere to Islamic investment principles, but also
must be engineered to be economically feasible in order to attract investment.
Sukuk structures may be significantly more complicated than conventional bonds
and often include a series of entities created specifically to support the sukuk
structure. In addition, sukuk are largely created in or otherwise subject to the
risks of developing economies, many of which have weak or inconsistent
accounting, legal, and financial infrastructure. The structural complexity of
sukuk, along with the weak infrastructure of the sukuk market, increases risks
of investing in sukuk, including operational, legal, and investment risks. In
addition, adherence to Islamic investment principles increases the risk of loss
in the event of a default. As compared to rights of conventional bondholders,
holders of sukuk may have limited ability to pursue legal recourse to enforce
the terms of the sukuk or to restructure the sukuk in order to seek recovery of
principal. Sukuk are also subject to the risk that issuers or Islamic scholars
may deem certain sukuk as not meeting Islamic investment principles subsequent
to the sukuk being issued and therefore classify the investments as noncompliant
with Islamic principles.
Wakala
risk: When the Fund
invests in wakala, it will be subject to the credit risk of the bank acting as
agent, and the risk that the bank will not manage the investment in a profitable
manner.
Interest
rate risk: Changes in
interest rates impact prices of fixed-income and related investments. When
interest rates rise, the value of fixed-income investments (paying a lower rate
of interest) generally will fall. Investments with shorter terms may have less
interest rate risk, but generally have lower returns and, because of the more
frequent maturity dates, may involve higher re-investment costs.
Credit
risk: Corporate and
sovereign issuers of the notes and certificates in which the Fund invests may
not be able or willing to make payments when due, which may lead to default or
restructuring of the investment. In addition, if the market perceives
deterioration in the creditworthiness of an issuer, the value and liquidity of
the issuer’s securities may decline.
High-yield
risk: Securities that
are rated below investment grade may have greater price fluctuations and have a
higher risk of default than investment-grade securities. Below-investment grade
securities may be difficult to sell at an acceptable price, especially during
periods of increased market volatility or significant market decline.
13
Subsidiary
investment risk: By
investing in the Subsidiary, the Fund is subject to the risks associated with
the Subsidiary’s investments. Those investments are similar to the investments
that are permitted to be held by the Fund and are subject to the same risks that
would apply to similar investments if held directly by the Fund. The Subsidiary
is organized under the laws of the Cayman Islands and is not registered with the
SEC under the Investment Company Act of 1940, as amended. Accordingly, the Fund
will not receive all of the protections offered to shareowners of registered
investment companies. Changes in the laws of the United States and/or the Cayman
Islands could result in the inability of the Fund and/or the Subsidiary to
operate as intended, which may negatively affect the Fund and its
shareowners.
Tax
risk: To qualify as a
regulated investment company (“RIC”), the Fund must meet certain requirements
concerning the source of its income. The Fund’s investment in the Subsidiary is
intended to provide exposure to sukuk, murabaha, and wakala in a manner that is
consistent with the “qualifying income” requirement applicable to RICs. Failure
to qualify as a RIC could subject the Fund to adverse tax consequences,
including a federal income tax on its net income at regular corporate rates, as
well as a tax to shareowners on such income when distributed as an ordinary
dividend.
The
Internal Revenue Service (“IRS”) has issued regulations providing that income
inclusions from a RIC subsidiary such as the Subsidiary will constitute
qualifying income for the RIC whether or not the income is distributed to the
RIC. These regulations are consistent with the conclusions in private letter
rulings the IRS had previously issued, and they remove the uncertainty that
existed as a result of earlier proposed regulations providing that only
distributions the subsidiary made to the RIC out of its earnings and profits for
the applicable tax year would so qualify. The tax treatment of the Fund’s
investment in the Subsidiary may be adversely affected by future legislation,
court decisions, Treasury Regulations, and/or guidance issued by the IRS that
could affect whether income derived from such investments is “qualifying income”
under Subchapter M of the Internal Revenue Code of 1986, as amended, or
otherwise affect the character, timing, and/or amount of the Fund’s taxable
income or any gains or distributions made by the Fund.
Performance
Annual Total Return
The
following bar chart presents the calendar year total returns of the
Participation Fund Institutional Shares before taxes (Institutional Shares are
used for this chart because they represent the largest share class of the Fund).
The bar chart provides an indication of the risks of investing in the Fund by
showing changes in performance from year to year. A fund’s past performance (before
and after taxes) is not a guarantee of how a fund will perform in the
future.
Performance
data current to the most recent month-end and quarter-end are available on www.amanafunds.com.
Year |
Return |
2016 |
2.56% |
2017 |
2.68% |
2018 |
0.11% |
2019 |
6.95% |
2020 |
5.59% |
2021 |
0.64% |
2022 |
-4.64% |
Best
Quarter |
Q2
2020 Jun. 30,
2020 |
5.50% |
Worst
Quarter |
Q1
2020 Mar. 31,
2020 |
-3.44% |
|
The
year-to-date
return as of the most recent calendar
quarter (which ended June 30,
2023) was 0.73%.
|
14
Average Annual Total Returns
The table below
presents the average annual returns of the Participation Fund and provides an
indication of the risks of investing in the Fund by showing how the Fund’s
average annual returns for the previous 1 and 5 years and since the Fund’s
inception on September 28, 2015, compare to those of a broad-based market
index.
|
|
|
|
Periods
ended December 31, 2022 |
|
1
Year |
5
Years |
Life
of Fund1 |
Participation
Fund Investor Shares (AMAPX) |
Return
before taxes |
-4.99% |
1.38% |
1.53% |
Participation
Fund Institutional Shares (AMIPX) |
Return
before taxes |
-4.64% |
1.64% |
1.77% |
Return
after taxes on distibutions |
-5.34% |
0.72% |
0.86% |
Return
after taxes on distibutions and sale of Fund shares |
-5.35% |
0.83% |
0.91% |
FTSE
Sukuk Index (reflects no deduction for fees, expenses, or
taxes) |
|
-8.18% |
2.32% |
2.73% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of any state or local
taxes. After-tax returns illustrated
are only for the Investor Shares; after-tax returns for Institutional Shares
will vary. Actual after-tax returns
depend on an investor’s tax situation and likely differ from those illustrated.
After-tax illustrations are not relevant to retirement plans, corporations,
trusts, or other investors that are taxed at special
rates. Return after taxes on distributions and sale of
Fund shares may be higher than other returns for the same period due to a tax
benefit of realizing a capital loss upon the sale of Fund
shares.
Investment
Adviser
Saturna
Capital Corporation is the Participation Fund’s investment adviser.
Portfolio
Managers
Since
September 2015 (the inception of the Fund), Mr. Patrick Drum CFA®,
portfolio manager and senior investment analyst at Saturna Capital Corporation,
has been primarily responsible for the day-to-day management of the
Participation Fund. Since May 2019, Ms. Elizabeth Alm CFA®, portfolio
manager and senior investment analyst at Saturna Capital Corporation, has been
the deputy portfolio manager.
Purchase
and Sale of Fund Shares
You
may open an account and purchase Participation Fund Investor Shares by sending a
completed application, a photocopy of a government-issued identity document, and
a check for $100 or more payable to the Amana Participation Fund.
Participation
Fund Institutional Shares are available with a minimum investment of $100,000.
Shareowners
may purchase additional shares at any time in minimum amounts of $25.
Shareowners
may redeem shares of their investment on any business day by these methods:
Written
request |
Write: |
Amana
Mutual Funds |
|
Box
N |
|
Bellingham,
WA 98227-0596 |
Or
Fax: |
360-734-0755 |
Telephone
request |
Call:
|
888-732-6262
or 360-734-9900 |
Online |
Visit: |
www.amanafunds.com |
Tax
Information
Distributions
you receive from the Fund may be taxed as ordinary income or capital gains.
Financial
Intermediary Compensation
If
you purchase the Participation Fund through a broker-dealer or other financial
intermediary (such as a bank or investment adviser), the Fund and its related
companies may pay the intermediary for the sale of shares and related services.
These payments may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your salesperson to recommend
the Fund over another investment. Ask your salesperson or visit your
broker-dealer or other financial intermediary’s website for more information.
15
Investment Objective
The
objectives of the Income Fund are
current income and preservation of capital, consistent with Islamic principles;
current income is its primary objective.
The
primary objective of the Growth Fund
is long-term capital growth, consistent with Islamic principles.
The
primary objective of the Developing World
Fund is long-term capital growth, consistent with Islamic principles.
The
objectives of the Participation Fund are capital preservation and current
income, consistent with Islamic principles; capital preservation is its primary
objective.
There
can be no guarantee that the particular investment objectives of a Fund will be
realized. These investment objectives may only be changed with approval by vote
of a majority of the outstanding shares of a Fund.
Principal Investment Strategies
Amana
Mutual Funds Trust is designed to provide investment alternatives that are
consistent with Islamic principles. Generally, Islamic principles require that
investors share in profit and loss, that they receive no usury or interest, and
that they do not invest in a business that is prohibited by Islamic principles.
Some of the businesses not permitted are alcohol, pornography, insurance,
gambling, pork processing, and interest-based banks or finance associations.
The
Funds do not make any investments that pay interest. Income-producing
investments conforming to Islamic principles, known as sukuk or Islamic bonds,
are permitted in the Participation Fund. Islamic principles discourage
speculation, and the Funds tend to hold investments for several years.
These
criteria limit investment selection and income-earning opportunities more than
is customary for mutual funds.
The
adviser, Saturna Capital Corporation, selects investments. To ensure that
investments meet the requirements of the Islamic faith, the adviser engages
Amanie Advisors Sdn Bhd, a leading consultant specializing in Islamic finance.
The
Amana Funds favor investing in companies trading for less than the adviser’s
assessment of intrinsic value, which typically means companies with relatively
low price/earning multiples, strong balance sheets, and proven businesses. Once
a Fund holds a position in a company, the Fund actively monitors market
conditions, industry developments, and other factors that may affect the company
or the Fund’s rationale for holding the investment. Although the Funds consider
valuation when monitoring their investments, a Fund may not necessarily
liquidate a position solely because of relatively high valuation. The Funds
actively monitor their investment portfolios but do not engage in high turnover
or speculative trading.
The
Income, Growth, and Developing World Funds seek companies demonstrating both
Islamic and sustainable characteristics.
Saturna
uses negative screening to exclude companies primarily engaged in the following
activities:
● |
Interest
Income |
● |
Pork
related businesses |
● |
Gambling |
● |
Tobacco |
● |
Weapons |
● |
Pornography |
● |
Alcohol |
● |
Fossil
fuel extraction |
Saturna
Capital Corporation, the Funds’ adviser employs a sustainable rating system
based on its own, as well as third-party, data to identify issuers believed to
have robust policies in the areas of the environment, social responsibility, and
corporate governance (“ESG”) to identify issuers believed to present low risks
in ESG. Saturna’s proprietary scoring system provides an assessment of how well
a company performs relative to a blend of its industry, sector, and country
peers in each ESG category. In addition to material and non-financial ESG
considerations, such as carbon emissions, water usage, renewable energy, and
fair labor and supply chain practices, Saturna positively screens for issuers
that show management stability and diversity, low debt, strong balance sheets,
high-quality operations, and a long-term focus.
The
Amana Income, Amana Growth, Amana Developing World, and Amana Participation
Funds seek to minimize potential current income taxes paid by shareowners, where
the basic strategies to be favored are (1) infrequent trading, (2) offsetting
capital gains with losses, and (3) selling highest cost tax lots first.
During
uncertain or adverse market or economic conditions, or the unavailability of
attractive investment opportunities, a Fund may adopt a temporary defensive
position. The Funds cannot invest in interest-paying instruments frequently used
by other mutual funds for this purpose. When markets are unattractive or
attractive investments are unavailable, the adviser chooses between continuing
to follow the Funds’ investment policies or converting securities to cash or
cash equivalents for temporary, defensive purposes. This choice is based on the
adviser’s evaluation of market conditions and a Fund’s portfolio holdings.
Temporary defensive holdings will be non-interest bearing and may, in whole or
in part, not be insured by the Federal Deposit Insurance Corporation (FDIC). In
the event a Fund takes such a position, it may not be able to achieve its
investment objective.
Income
Fund
It
is the policy of the Income Fund, under normal circumstances, to invest at least
80% of its assets in income-producing securities, primarily dividend-paying
common stocks. The Income Fund may invest in foreign securities.
While
cash assets do not contribute to the Income Fund’s primary objective of current
income, they do assist its secondary objective of preservation of capital.
Growth
Fund
It
is the policy of the Growth Fund, under normal circumstances, to invest at least
80% of assets in common stocks. The adviser selects investments primarily on
past earnings and revenue growth rates, and the expectation of increases in
earnings and share price. The Growth Fund may invest in foreign securities.
16
Cash
assets may contribute to the Growth Fund’s objective of long-term capital growth
by reducing capital losses that might have occurred had the Growth Fund been
fully invested during periods of market decline.
Developing
World Fund
It
is the policy of the Developing World Fund, under normal circumstances, to
invest at least 80% of assets in common stocks of companies with significant
exposure to countries with developing economies and/or markets.
The
Developing World Fund may invest in equity securities of any company, regardless
of where it is based, if the adviser determines that a significant portion of
the company’s production, assets, or revenues (50% or more) is attributable to
developing countries.
Through
reference to data provided by various globally recognized organizations such as
the International Monetary Fund, The World Bank, and the Organization for
Economic Cooperation and Development, the adviser maintains a list of countries
it considers to have developing economies and/or markets. The list, which
changes over time, currently includes: Argentina, Bahrain, Brazil, Chile, China,
Colombia, Croatia, Czech Republic, Egypt, Ecuador, Greece, Hungary, India,
Indonesia, Jordan, Kuwait, Malaysia, Malta, Mexico, Oman, Panama, Peru,
Philippines, Poland, Qatar, Saudi Arabia, Slovenia, South Africa, South Korea,
Taiwan, Thailand, Turkey, Vietnam, and United Arab Emirates.
Cash
assets may contribute to the Developing World Fund’s objective of long-term
capital growth by reducing capital losses that might have occurred had the
Developing World Fund been fully invested during periods of market decline.
Participation
Fund
It
is the policy of the Participation Fund, under normal circumstances, to invest
at least 80% of its assets in short and intermediate-term Islamic
income-producing investments. The Fund invests primarily in notes and
certificates issued for payment by foreign governments, their agencies, and
financial institutions in transactions structured to be in accordance with
Islamic principles. Examples of these notes and certificates include (a) sukuk,
which link the returns and cash flows of financing to the assets purchased, or
the returns generated from an asset purchased, (b) murabaha, which involves a
purchase and sale contract, and (c) wakala, in which accounts are operated under
the Islamic finance principle of wakala (an agency agreement). In addition, the
Fund may invest in time deposits with banks that involve underlying purchase and
sale agreements to generate the return on the deposit.
The
Fund invests substantially in sukuk certificates that are traded outside of the
US or within the US subject to certain trading restrictions which may increase
the liquidity risks associated with the Fund’s investments.
The
Fund may invest up to 25% of its total net assets in the Subsidiary, as measured
at the end of the quarter of its taxable year. Under normal conditions, the
Subsidiary invests in sukuk, murabaha, and wakala. The limitation on investment
in the Subsidiary is imposed by the Internal Revenue Code of 1986, as amended.
The Subsidiary, which is organized under the laws of the Cayman Islands, is
wholly-owned and controlled by the Fund. The Fund invests in the Subsidiary in
order to gain exposure to the investment returns of sukuk, murabaha, and wakala
within the limitations of the
federal
tax law requirements applicable to regulated investment companies. The
Subsidiary is, on a consolidated basis, subject to the same fundamental and
non-fundamental investment restrictions as the Fund and, in particular, to the
same requirements relating to liquidity, and the timing and method of valuation
of portfolio investments and Fund shares described elsewhere in this Prospectus
and in the Statement of Additional Information (“SAI”). The Fund is the sole
shareowner of the Subsidiary and does not expect shares of the Subsidiary to be
offered or sold to other investors.
Wakala:
The Fund may invest in wakala. Wakala, which means “agency agreement” are
Islamic finance instruments. Typically, a bank, as agent, raises funds for
investment in various activities. As agent the bank monitors these investment
activities. The bank and investors, like the Fund share in the profit and risk
of loss with respect to these investment activities.
The
Fund is non-diversified and may invest a larger percentage of its assets in
fewer issuers, which may cause the Fund to experience more volatility than
diversified funds. In addition, the Fund may concentrate its investments within
the financial services industry and real estate sector.
Principal Risks
Investing
in securities entails both market risks and risk of price variation in
individual securities. Islamic principles restrict a Fund’s ability to invest in
certain stocks and market sectors, such as financial companies and conventional
fixed-income securities. This may limit investment opportunities and may
adversely affect the Funds’ performance.
Income
Fund, Growth Fund,
Developing World
Fund, and Participation Fund
Market
risk: The market value of securities will fluctuate, sometimes significantly
and unpredictably. The securities markets are also susceptible to data
imprecision, technology malfunctions, operational errors, and similar factors
that may adversely affect a single issuer, a group of issuers, an industry, or
the market as a whole. Changes in value may be temporary or may last for
extended periods. A slow-growing economy, or an inflationary or a recessionary
environment, may adversely impact securities markets and prices of securities in
which the Funds invest. Economies and financial markets throughout the world are
becoming increasingly interconnected. Local, regional, or global events such as
civil disobedience, insurrection, war, acts of terrorism, the spread of
infectious disease or other public health issues, or other events could have a
significant impact on the Funds and their investments. As a result, events or
conditions that impact the economies or securities markets may adversely impact
the Funds even if they are not invested primarily in those economies or
markets.
Active
management: Despite strategies designed to achieve the Funds’ investment
objectives, the value of investments will change with market conditions.
Securities selected for the Funds may not perform as Saturna Capital
Corporation, the Funds’ adviser, expects. Additionally, securities selected may
cause the Funds to underperform relative to other funds with similar investment
objectives and strategies. There is no guarantee that Saturna Capital
Corporation will effectively assess
17
the
Funds’ portfolio characteristics and it is possible that its judgments regarding
the Funds’ exposures may prove incorrect. In addition, actions taken to manage
the Funds’ exposures, including risk, may be ineffective and/or cause the Funds
to underperform.
Fundamental
Investing: A fundamental investment approach uses research and analysis of a
variety of factors to select securities. That research and analysis may be
incorrect or, if correct, may not be reflected by the market. Fundamental
analysis is inherently subject to the risk of nobody being able to identify all
the relevant factors. In addition, the macro-economic factors considered by
Saturna Capital Corporation, the Funds’ adviser, may be difficult to evaluate or
implement. Fundamental investing is also inherently subject to differences
between the prices of securities and their value as determined by a fundamental
investment approach. A fundamental investment approach may cause a Fund to
underperform other funds with similar investment objectives and investment
strategies even in a rising market.
Significant
positions: The Funds invest according to varying investment objectives and
no Fund attempts to replicate a broad index. Seeking to outperform both broad
indices and other funds, the Funds generally overweight positions in various
sectors, industries, and issuers. Because of their investment objectives, for
example, the Growth Fund may overweight the Technology sector and the
Participation Fund may overweight the Real Estate sector. Significant positions
in sectors, industries, and issuers will wax and wane over time. While
limitations to concentrations in mutual funds apply, adverse developments in a
Fund’s holdings may have a greater impact on a Fund that has an overweight
position than a fund or index that is not similarly overweight a sector,
industry, or issuer.
The
types of investments favored by the markets also change over time, and a Fund’s
investment style may hinder its comparative returns. Inflationary periods tend
to favor newer, more volatile issuers than those that weather recessions and
deflation. The Amana Funds’ investment style allows significant positions in
established issuers, industries, and sectors and they may underperform during
periods of loose fiscal and monetary policies.
Foreign
investing: Foreign countries can involve higher risks of confiscatory
taxation, seizure or nationalization of assets, establishment of exchange
controls, less public information about securities and less governmental market
supervision, adoption of government restrictions, or adverse political or social
developments that affect investments.
Income
Fund, Growth Fund, and
Developing World Fund
Sustainable
investing: Applying sustainability and ESG criteria (“Sustainability
Criteria”) to the investment process may exclude or reduce exposure to
securities of certain issuers which could limit the Funds’ opportunity set
compared to funds that do not use Sustainability Criteria and the Funds’
performance may at times be better or worse than the performance of funds that
do not use Sustainability Criteria. Sustainability Criteria data, including data
obtained from third-party providers, may be incomplete, inaccurate,
inconsistent, or unavailable, which could adversely affect the analysis of a
particular investment. It
is
possible that the investments identified by Saturna Capital Corporation as being
aligned with its Sustainability Criteria will not perform as expected. Saturna
Capital Corporation could sell such positions at a disadvantageous time if an
issuer no longer meets the Sustainability Criteria. While Saturna Capital
Corporation’s views on Sustainability Criteria comport with Islamic investment
principles, investors may differ in their view of Sustainability Criteria. Thus,
the Funds may invest in issuers that do not reflect the views of any particular
investor. The regulatory landscape with respect to Sustainability Criteria is
still under development. Future regulations and/or rules adopted by applicable
regulators could require the Funds to change or adjust their investment process
with respect to the Sustainability Criteria.
Growth
Fund, Developing World Fund
Growth
investing: The Funds may invest in growth stocks, which may be more volatile
than slower-growing value stocks. Growth stocks typically trade at higher
multiples of current earnings than other stocks, which may lead to inflated
prices. Growth stocks often are more sensitive to market fluctuations than other
securities because their market prices are highly sensitive to future earnings
expectations. At times when it appears that these expectations may not be met,
growth stocks’ prices typically fall and declines may be significant when a
stock had been supported by significant investor speculation. During market
cycles when growth investing is out of favor, selling growth stocks at desired
prices may be more difficult.
Developing
World Fund
Developing
market: Investing in countries of the developing world may involve risks in
addition to and greater than those generally associated with investing in
developed countries. For instance, developing countries may have less developed
legal and accounting systems. The governments of these countries may be more
unstable and more likely to impose capital controls, nationalize a company or
industry, place restrictions on foreign ownership and on withdrawing sale
proceeds of securities from the country, and/or impose punitive taxes that could
adversely affect security prices. In addition, the economies of these countries
may be dependent on relatively few industries that are more susceptible to local
and global changes. Securities markets in these countries are also relatively
small and have substantially lower trading volumes. As a result, securities
issued in these countries may be more volatile and less liquid than securities
issued in countries with more developed economies or markets.
Participation
Fund
Credit:
Investing in certificates, notes, and similar securities subjects the Fund
to credit risk, which is the risk that a security issuer may not be able pay its
obligations when due, thus reducing the value of the Fund’s portfolio
holdings.
18
Interest
rate: Investing in securities related to the fixed-income markets subjects
the Fund to interest rate risk, which is the risk that a rise in prevailing
interest rates generally causes the price of such securities to fall. The Fund
mitigates this risk by seeking to maintain an average portfolio maturity of two
to five years (short to intermediate-term), in that longer-term securities
normally have greater declines when interest rates rise.
Non-diversified
fund: The Fund is non-diversified, which means it may invest a larger
percentage of its assets in fewer issuers as compared to a fund that is more
broadly diversified. Because the Fund is not required to diversify its
investments among a broader group of issuers, the Fund may be more volatile than
diversified funds. Although the Fund is considered non-diversified, the Fund
intends to maintain sufficient diversification to qualify for favorable tax
treatment provided to mutual funds under the Internal Revenue Code of 1986, as
amended (the “Internal Revenue Code”).
Subsidiary:
By investing in the Subsidiary, the Fund is subject to the risks associated with
the Subsidiary’s investments. The Subsidiary is not registered with the SEC as
an investment company under the 1940 Act, and is not subject to the investor
protections of the 1940 Act. As an investor in the Subsidiary, the Fund does not
have the same protections offered to shareowners of registered investment
companies.
The
Fund and the Subsidiary may not be able to operate as described in this
Prospectus in the event of changes to the laws of the United States or the
Cayman Islands. If the laws of the Cayman Islands required the Subsidiary to pay
taxes to a governmental authority, the Fund would be likely to suffer decreased
returns. The tax treatment of the Fund’s investment in the Subsidiary may be
adversely affected by future legislation, court decisions, Treasury Regulations
and/or guidance issued by the IRS that could affect whether income derived from
such investments is “qualifying income” under Subchapter M of the Internal
Revenue Code, or otherwise affect the character, timing, and/or amount of the
Fund’s taxable income or any gains or distributions made by the Fund.
Sukuk:
In addition to credit risk, interest rate risk, maturity, and investment-grade
risk, investing in sukuk and similar forms of Islamic investments involve
specific additional risks. Once purchased, these investments tend to be held
until maturity, meaning trading is less frequent compared to conventional bonds.
Being a relatively new form of security, institutional markets and support for
sukuk is less robust than that available in conventional debt markets. Laws and
regulations regarding the issuance, trading, default resolution, and other
aspects of sukuk are not as well-defined as they are for conventional debt
issuers.
The
Fund’s investments in sukuk, especially sukuk issued by foreign governments and
their agencies, differ from conventional debt obligations. Holders of
conventional bonds typically have legal remedies if the issuer defaults, and the
bondholders may pursue their remedies in the courts having jurisdiction over the
defaulting party. Sukuk investments may not offer investors the right to pursue
such remedies. To the extent a Fund holds sukuk that are in default,
the
Fund’s legal recourse to enforce payment may be significantly limited.
Accordingly, a sovereign or private entity’s willingness to meet the terms of
its obligations gives rise to credit risk, but without the legal protections
typically provided to lenders.
Wakala:
The Fund may invest in wakala. Wakala, which means “agency agreement” are
Islamic finance instruments. Typically, a bank, as agent, raises funds for
investment in various activities. As agent, the bank monitors these investment
activities. The bank and investors, like the Fund, share in the profit and risk
of loss with respect to these investment activities.
Liquidity
Program (Equity Funds)
The
Income, Growth, and Developing World Funds may participate in the ReFlow Fund,
LLC (“ReFlow”) liquidity program. This program is designed to provide an
alternative liquidity source on days when redemptions of Fund shares exceed
purchases. Under the program, ReFlow is available to provide cash to the Funds
to meet all, or a portion, of daily net shareowner redemptions. ReFlow provides
this cash by purchasing Institutional Shares at net asset value and ReFlow will
not be subject to any investment minimum applicable to such shares. Following
purchases of Fund shares, ReFlow then generally redeems those shares when the
Fund experiences net sales, at the end of a maximum holding period determined by
ReFlow (currently 8 days) or at other times at ReFlow’s discretion. While ReFlow
holds Fund shares, it will have the same rights and privileges with respect to
those shares as any other shareowner.
For
use of the ReFlow service, a participating Fund pays a fee to ReFlow each time
it purchases Fund shares, calculated by applying to the purchase amount a fee
rate determined through an automated daily “Dutch auction” among other
participating mutual funds seeking liquidity that day. The current minimum fee
rate is 0.14% of the value of the Fund shares purchased by ReFlow, although the
Fund may submit a bid at a higher fee rate if it determines that doing so is in
the best interest of Fund shareowners. Such a fee is allocated among a Fund’s
share classes based on relative net assets. In accordance with federal
securities laws, ReFlow is prohibited from acquiring more than 3% of the
outstanding voting securities of a Fund.
ReFlow
will periodically redeem its entire share position in the Fund and request that
such redemption be met in kind in accordance with the Fund’s in-kind redemption
policies described under Purchase and Sale of Fund Shares below.
Investments in the Fund by ReFlow in connection with the ReFlow liquidity
program are not subject to the policy described in the Frequent Trading
Policy section below. The adviser believes that the program has advantages
over more conventional alternatives for meeting the Funds’ liquidity needs,
which typically involve selling portfolio securities and/or liquidating cash
reserves. When ReFlow redeems in kind, it is anticipated that the use of the
program will reduce a Fund’s realization of capital gains.
Operational
Risk (All Funds)
An
investment in an Amana Fund, like any fund, can involve operational risks
arising from factors such as processing errors, human errors, inadequate or
failed internal or external processes, failure in systems and technology,
changes in personnel, and errors caused by third-party service providers. A Fund
may be affected by international, US, state, or local political events,
including the action or inaction of governments, their instrumentalities, or
quasi-governmental organizations, which may negatively impact
19
economic
conditions and businesses’ operating environments. Future government regulation
and/or intervention could also change the way in which a Fund is regulated or
affect the expenses incurred directly by a Fund. Regulatory uncertainty and
political or governmental action or inaction may affect the value of a Fund’s
investments, and limit and/or preclude a Fund’s ability to achieve its
investment objective. Other disruptive events may include, but are not limited
to, natural disasters, public health events, labor shortages, supply chain
interruptions, and other destabilizing events that adversely affect a Fund’s, or
their service providers’ ability to conduct business. The Funds seek to minimize
such events through controls and oversight, but there may still be events or
failures that could cause losses to the Funds. In addition, as the use of
technology increases, the Funds may be more susceptible to operational risks
through intentional and unintentional breaches in cyber security. A breach in
cyber security may cause the Funds or their service providers to lose
proprietary information or operational capacity or suffer data corruption. As a
result, the Funds may incur regulatory penalties, reputational damage,
additional compliance costs associated with corrective measures, and/or
financial loss. The Funds and their service providers may also maintain
sensitive information (including relating to personally identifiable information
of investors) and a cyber security breach may cause such information to be lost,
improperly accessed, used, or disclosed.
Please
refer to the Trust’s Statement of Additional Information for further details
about the risks of investing in the Funds.
Investment Information
Shareowners
receive an Amana Mutual Funds Trust financial report showing the investment
returns, portfolios, income, and expenses of each Fund every six months. The
audited financial statements of each Fund for the year ended May 31, 2023,
included in the Trust’s Annual Report, are available upon request. Investors may
obtain current share prices daily on financial information websites, by calling
1-888-732-6262, on electronic quotation systems, and at www.amanafunds.com. The
following symbols can be used to obtain quotations and other information:
Income
Fund |
Investor
Shares |
AMANX |
Institutional
Shares |
AMINX |
Growth
Fund |
Investor
Shares |
AMAGX |
Institutional
Shares |
AMIGX |
Developing
World Fund |
Investor
Shares |
AMDWX |
Institutional
Shares |
AMIDX |
Participation
Fund |
Investor
Shares |
AMAPX |
Institutional
Shares |
AMIPX |
This
prospectus, financial reports, performance information, proxy voting records,
and other useful information are also available at www.amanafunds.com. Portfolio
holdings are provided each month-end online (see the Statement of Additional
Information for a description of portfolio disclosure policies).
Investment Adviser
Saturna
Capital Corporation, 1300 N. State Street, Bellingham, Washington 98225, is the
Trust’s investment adviser and administrator (“adviser”). The adviser’s
wholly-owned subsidiary, Saturna Brokerage Services, Inc., is the Trust’s
distributor. Founded in 1989, Saturna Capital Corporation has approximately $7.1
billion in assets under management. It is also the adviser to another
investment
company, Saturna Investment Trust, and to separately managed accounts. The Amana
Growth Fund, Amana Income Fund, and Amana Developing World Fund will each pay an
advisory and administration fee of 0.80% on the first $1 billion of a Fund’s
average daily net assets, 0.65% on the next $1 billion, and 0.50% on assets over
$2 billion. The Amana Participation Fund pays an advisory and administration fee
of 0.50% of the Fund’s average daily net assets. For the fiscal year ended May
31, 2023, these fees amounted to 0.75% for the Income Fund, 0.64% for the Growth
Fund, 0.80% for the Developing World Fund, and 0.50% for the Participation Fund.
A discussion regarding the basis for the Board of Trustee’s renewal of the
advisory contracts is available in the Trust’s Semi-Annual Report which covers
the six months ended November 30, and is published each January.
The
Participation Fund may invest up to 25% of its total net assets in the
Subsidiary. The Subsidiary has entered into a separate investment advisory
agreement with Saturna Capital Corporation. Under this agreement, Saturna
Capital Corporation provides the Subsidiary with the same type of investment
advisory services on substantially the same terms as Saturna Capital Corporation
provides advisory services to the Fund. The Fund (not the Subsidiary) pays
Saturna Capital Corporation an advisory fee as described above.
The
Subsidiary also has entered into an agreement with the Fund’s service providers
for the provision of administrative, accounting, transfer agency, and custody
services. The Subsidiary will bear the expenses associated with these services,
which are not expected to be material in relation to the value of the Fund’s
assets. It is also anticipated that the Fund’s own expenses will be reduced to
some extent as a result of the payment of such expenses at the Subsidiary level.
Therefore, it is expected that the Fund’s investment in the Subsidiary will not
result in the Fund paying duplicative fees for similar services provided to the
Fund or the Subsidiary.
Mr.
Scott F. Klimo CFA®, is the chief investment officer at the adviser.
Since April 2020, Mr. Klimo has been primarily responsible for the day-to-day
management of the Growth Fund’s portfolio. From 2012 until April 2020, he was a
deputy portfolio manager of the Growth Fund. Since 2012, he has been a deputy
portfolio manager of the Income Fund. Since April 2020, he has been a deputy
portfolio manager of the Developing World Fund and served as portfolio manager
of the Developing World Fund from 2014 to 2020.
Mr.
Monem A. Salam MBA is executive vice president, a director, and a global
portfolio manager for the adviser. Since April 2020, Mr. Salam has been
primarily responsible for the day-to-day management of the Income and Developing
World Funds’ portfolios. From July 2018 until April 2020, and previously from
2008 to 2012, he was a deputy portfolio manager for the Income Fund. From 2017
until April 2020, was a deputy portfolio manager of the Developing World Fund.
Since July 2018, and previously from 2008 to 2012, he has been a deputy
portfolio manager for the Growth Fund. From 2012 to 2018, Mr. Salam was
president and portfolio manager for Saturna Sdn. Bhd., Saturna Capital
Corporation’s wholly-owned Malaysian subsidiary.
Mr.
Bryce R. Fegley CFA®, is a senior investment analyst and portfolio
manager for the adviser. Since April 2020, Mr. Fegley has been a deputy
portfolio for the Income Fund. For Saturna Capital he has worked in brokerage,
investment research, and its Malaysian investment advisory subsidiary.
20
Mr.
Christopher E. Paul MBA, CFA®, is a senior investment analyst and
portfolio manager for the adviser. Since April 2020, Mr. Paul has been a deputy
portfolio manager for the Growth Fund. From 2008 to 2015, Mr. Paul served as a
Research Analyst and then a Director of Research with Cannell Capital. Mr.
Paul’s experience includes research and management positions at asset management
firms and investment banks, as well as finance and operations roles at
technology companies.
Mr.
Levi Stewart Zurbrugg MBA, CFA®, CPA®, is a senior
investment analyst and portfolio manager for the adviser. Since April 2020, he
has been a deputy portfolio manager for the Developing World Fund. From 2014 to
2017, Mr. Zurbrugg served as a sector analyst for Sustainability Accounting
Standards Board.
Mr.
Patrick Drum MBA, CFA®, CFP®, is a portfolio manager and
research analyst for the adviser. Since 2015, he has been primarily responsible
for the day-to-day management of the Participation Fund’s portfolio. From 2007
to 2014, Mr. Drum was a senior portfolio manager with the Arbor Group at UBS
Financial Services specializing in the investment of non-US fixed income
portfolios employing an ESG screening process.
Ms.
Elizabeth Alm CFA®, is a senior investment analyst and deputy
portfolio manager for the adviser. Since 2019, she has been deputy portfolio
manager of the Participation Fund. From 2007 to 2018, Ms. Alm was a senior
research analyst with Wells Fargo Asset Management focusing on high-yield
municipal bonds.
See
the Statement of Additional Information for a discussion of their compensation,
other accounts managed, and ownership of Amana Funds.
Fund Share Pricing
The
Funds compute their daily share prices (net asset values) using market prices as
of the close of trading on the New York Stock Exchange (generally 4 p.m. Eastern
time). Fund shares are not priced on the days when New York Stock Exchange
trading is closed (typically weekends and US national holidays). Securities
traded on a national securities exchange and over-the-counter securities are
valued at the last reported sale price on the valuation day. Securities for
which there are no sales are valued at the latest bid price. Occasionally there
may be days without a readily available market price for a security. When this
occurs, a fair value for such security is determined in good faith under the
direction of the Board of Trustees. The Board of Trustees has designated the
adviser (Saturna Capital Corporation) as each Fund’s valuation designee to
perform fair value functions in accordance with valuation policies and
procedures adopted by the adviser, subject to the Board of Trustee’s oversight.
Using fair value to price a security may result in a value different from the
security’s most recent closing price and from the prices used by other mutual
funds to calculate their share prices.
Foreign
markets may close before the time as of which the share price is computed.
Because of this, events occurring after the close of a foreign market and before
the share price computation may have a material effect on foreign security
prices. To account for this, the Funds use evaluations provided by an
independent pricing service for many foreign securities, including sukuk. Such
evaluations are based on the foreign securities’ most recent closing market
prices as of 4 p.m. Eastern time and correlations with broad market indices,
sector indices, equity index futures contracts,
American
Depositary Receipts, and other factors. Foreign securities may trade on weekends
or other days when the Funds do not price their shares. As a result, the share
price may change on days when you will not be able to purchase or redeem shares.
Each
Fund computes the share price of each share class by dividing the net assets
attributable to each share class by the outstanding shares of that class. Each
share class represents an interest in the same investment portfolio. Each share
class is identical in all respects except that each class bears its own class
expenses, and each class has exclusive voting rights. As a result of the
differences in the expenses borne by each share class the share price will vary
among a Fund’s share classes.
The
Participation Fund may invest up to 25% of its total assets in the Subsidiary.
The Subsidiary offers to redeem all or a portion of its shares every Business
Day. The value of the Subsidiary’s shares will fluctuate with the value of its
portfolio investments. The Subsidiary uses the same pricing and valuation
methodologies described above to price its shares.
Additional
information about portfolio security valuation, including foreign securities, is
contained in the Trust’s Statement of Additional Information (SAI).
Purchase and Sale of Fund Shares
IMPORTANT
INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government
fight the funding of terrorism and money laundering activities, federal law
requires all financial institutions to obtain, verify, and record information
that identifies each person who opens an account. What this means for you: When
you open an account, we will ask for your name, address, date of birth, and
other information that will allow us to identify you. For most accounts, we will
ask for a photocopy of your driver’s license or other identifying documents.
You
may open an account by sending a completed application, a photocopy of a
government-issued identity document, and a check made payable to the Fund of
your choice. The initial minimum investment for Income, Growth, Developing
World, and Participation Funds Investor Shares is $100. The Funds do not accept
initial orders via telephone or unaccompanied by payment.
Institutional
Shares are available for purchase with an initial minimum investment of $100,000
in a Fund. A broker-dealer or other financial intermediary that maintains an
account with a Fund in the intermediary’s name as nominee for the benefit of the
intermediary’s clients may aggregate client orders to meet the $100,000 initial
minimum investment. In addition, Institutional Shares are available for purchase
without any minimum initial investment by:
|
●
|
Qualified
and non-qualified employer-sponsored retirement or benefit plans,
including 401(k) plans, 457 plans, 403(b) plans, |
21
|
|
profit-sharing
plans, and deferred compensation plans; |
|
●
|
Qualified
retirement or benefit plans, including IRA, ESA, and HSA plans serviced as
trustee by Saturna Trust Company; and |
|
●
|
Fee-based
advisory programs (including mutual fund wrap programs) sponsored by
financial intermediaries that provide bundled services for a fee.
|
The
price applicable to purchases and redemptions of Fund shares is the price next
computed after receipt of a purchase or redemption request in proper order.
There are no sales charges or loads. The Funds may reject purchases for any
reason, such as excessive trading. In addition, anti-money laundering
regulations limit acceptance of third-party checks and money orders.
Shareowners
may purchase additional shares of either class of shares at any time in minimum
amounts of $25. Once an account is open, purchases can be made by check, by
electronic funds transfer, or by wire. With prior authorization, purchase orders
can be entered at www.amanafunds.com.
Shareowners
may authorize the purchase or redemption of shares via electronic funds transfer
(“EFT”) by completing the appropriate section of the application. The
authorization must be received at least two weeks before EFT can be used. To use
EFT to purchase or redeem shares, simply call 1-888-732-6262. Investors may also
wire money to purchase shares, though the wiring bank typically charges a fee
for this service. Please notify Saturna Capital Corporation when you are wiring
money.
Each
time shares are purchased or redeemed, a confirmation is mailed and/or emailed
showing the details of the transaction as well as the current number and value
of shares held. Share balances are computed in full and fractional shares,
expressed to three decimal places.
Shareowners
may request a redemption of all or part of their investment on any business day
of the Funds. The Funds pay redemption proceeds in US dollars, and the amount
per share received is the price next determined after receipt of a redemption
request in proper order. The amount received depends on the value of the
investments of that Fund on that day and may be more or less than the cost of
the shares being redeemed.
If
you are redeeming shares that you recently purchased by check, the Funds may
delay sending your redemption proceeds until your check has cleared. This may
take up to 15 calendar days after your check is received. If you are redeeming
shares that you have recently purchased by EFT, those shares may be subject to a
60-day waiting period during which such shares may only be redeemed by EFT to
the same bank account from which the funds were initially withdrawn. Such shares
may not be redeemed online during the 60-day waiting period.
The
Funds normally send redemption proceeds within one day; however, if the Funds
reasonably believe that a cash redemption would negatively impact the operations
of a Fund or that the shareowner may be engaged in market-timing or frequent
trading, the Funds reserve the right to delay payment of the redemption proceeds
for up to seven calendar days. The Fund’s investment team continually monitors
portfolio liquidity and adjusts the Fund’s cash level based on market outlook,
portfolio and investor transactions, and other relevant criteria. The Amana
Funds do not buy or hold conventional bonds or other types of interest-bearing
debt instruments and generally have higher levels of cash and liquidity
than
other mutual funds. Conversely, unlike many mutual funds, the Amana Funds do not
maintain a bank line of credit that could be used to meet short-term liquidity
needs. The Funds typically expect to meet redemption requests, under both normal
and stressed market conditions, by redeeming cash and cash equivalent portfolio
holdings and/or selling portfolio securities or other instruments. The Funds
also reserve the right to redeem an investor’s shares in kind (i.e., providing
investors with portfolio securities instead of cash), in whole or in part to
meet redemption requests in both normal and stressed market conditions and other
appropriate circumstances. The Funds may also use redemptions in kind for
certain Fund shares held by ReFlow. A redemption in kind will consist of
securities equal in market value to the Fund shares being redeemed, using the
same valuation procedures that the Funds used to compute their net asset values.
The Funds would redeem in kind when the Manager or the Board of Trustees
determines that it is in the best interests of a Fund’s shareowners as a whole.
There can be no assurance that the Fund will be able manage liquidity
successfully in all market environments. Under stressed conditions, the Fund may
not pay redemption proceeds in a timely fashion.
The
Funds reserve the right to change the terms of purchasing shares and services
offered.
There
are several methods you may choose to redeem shares:
Written
request |
|
|
Write: |
Amana
Mutual Funds |
|
|
Box
N |
|
|
Bellingham,
WA 98227-0596 |
|
Or
Fax: |
360-734-0755 |
Telephone
request |
|
Call:
|
888-732-6262
or 360-734-9900 |
Unless
Saturna is notified in advance that you do not want this privilege, you may
redeem shares by telephone. For telephone requests, the Funds will endeavor to
confirm that instructions are genuine. The caller must provide:
|
●
|
the
name of the person making the request, |
|
●
|
the
name and address of the registered owner(s), |
|
●
|
the
amount to be redeemed, and |
|
●
|
the
method for remittance of the proceeds. |
Online |
|
|
Visit: |
www.amanafunds.com |
To
initiate transactions online, shareowners must first complete an Online Access
and E-Delivery form available on www.amanafunds.com or by calling toll-free
1-800-728-8762. When accessing their account, users must provide their username
and password, and possible security prompts.
You
may choose one of the following options for the proceeds:
|
●
|
Redemption
check (no minimum) sent to registered owner(s). |
|
●
|
Federal
funds wire ($5,000 minimum; requires written request).
|
|
●
|
Electronic
Funds Transfers (no minimum) with proceeds transmitted to your bank
account as designated by the EFT authorization on your application or
banking authorization |
22
|
|
form.
The transfer agent must receive the EFT authorization at least two weeks
before EFT can be used. |
|
●
|
Exchange
(in at least the minimum established by the Fund being purchased) for
shares of any other Fund for which Saturna Capital Corporation is the
adviser. If the exchange is your initial investment into a Fund, the new
account will automatically have the same registration as your original
account. Exchanges are currently available via written and telephone
requests. |
Note:
Signatures on written requests, such as payments directed to a third party, may
need to be guaranteed by a national bank, trust company, or by a member of a
national securities exchange.
Prevailing
rates apply to federal funds wires and expedited courier service for redemption
checks. Delivery times cannot be guaranteed by the Funds.
As
the transfer agent, Saturna may also require a form of personal identification.
Neither the transfer agent nor the Fund will be responsible for the results of
transactions they reasonably believe genuine.
The
shares and/or uncashed checks of redemptions, dividends, or distributions may be
transferred to your state of residence if no activity occurs within your account
during an “inactivity period” specified in your state’s laws.
The
Amana Funds may restrain any account and suspend account services when: a Fund
believes that there may exist a dispute between the registered or beneficial
account owners; a Fund believes that a transaction may be fraudulent; in cases
of abusive or threatening conduct or suspected illegal activity; or if a Fund is
unable to verify the identity of the person(s) or entity opening an account or
requesting a transaction.
Converting
Shares
At
no charge, you may convert one class of shares of a Fund directly to another
class of shares of the same Fund, subject to the eligibility requirements and
the fees and expenses of the share class of the Fund you convert into.
If
you purchased shares directly from the Fund, you may initiate this process by
writing to or calling the Fund. If you have purchased your shares through an
intermediary, you should contact your intermediary to initiate this process.
Your ability to conduct a share class conversion through an intermediary will
depend on the share classes your intermediary makes available on the platform or
program through which you own shares.
In
addition, your intermediary may permit or require you to exchange your shares in
a Fund into shares of a different class of the Fund if you elect to change the
platform or program through which you own shares at the intermediary (e.g.,
advisory or retail brokerage), depending on the share classes your intermediary
makes available on its platforms or platforms. The Fund share class you exchange
into may have higher or lower fees than the share class you held. Contact your
intermediary for more information.
Conversions
will occur at the next available respective net asset values of the share
classes. A conversion between share classes of the Fund is not normally a
taxable event. You may only convert shares between accounts with identical
registrations (i.e., the same names and addresses).
Distributions
Each
Fund intends to distribute its net investment income and net realized capital
gains, if any, to its shareowners. Distributions from net capital gains are paid
at the end of December and May; income dividends are paid in December and May
for the Income Fund and in December for the Growth Fund and Developing World
Fund. The Participation Fund declares dividends daily and pays income
distributions monthly. As a result of their investment strategies, the Growth
Fund and Developing World Fund may not pay income dividends.
Dividends
paid by each Fund with respect to each class of shares are calculated in the
same manner and at the same time.
Both
dividends and capital gains distributions are paid in additional full and
fractional shares of the share class owned. At your option, you may receive
dividends and/or capital gain distributions in cash. You are notified of each
dividend and capital gain distribution when paid.
You
may choose to have your dividends and/or capital gains sent directly to your
bank account or a check issued for dividend or capital gain distributions of $10
or more. Dividends or capital gains in amounts less than $10 will be reinvested.
If you do not indicate any choice on your application, your dividends will be
reinvested.
Returned
dividend checks and dividend checks that remain uncashed for six months will be
automatically reinvested into your account and invested in additional shares of
the Fund; future dividends in such accounts will continue to be reinvested until
the shareowner is located or the account is closed.
Purchase and Sale of Fund Shares Through Financial
Intermediaries
The
Funds have authorized financial intermediaries (such as securities brokers or
dealers, retirement plan record keepers, banks, and trust companies) to receive
purchase, redemption, and exchange orders on behalf of the Funds. These
authorized intermediaries may designate other intermediaries to receive such
orders. A Fund will be deemed to have received a purchase, redemption, or
exchange order when an authorized intermediary (or its designee) receives the
transaction request in good order.
If
you purchase shares through an intermediary, the transfer agent may not have
your account information. If so, you must contact your intermediary to perform
transactions. Investors should be aware that intermediaries might have policies
different than the Funds’ policies regarding purchases, redemptions, or
exchanges and these may be in addition to or in place of the Funds’ policies.
For
more information about these restrictions and policies, please contact your
broker, retirement plan administrator, or other intermediary.
When
you buy shares through a financial intermediary, that intermediary may charge a
transaction fee or commission which is not reflected in the expenses table or
example. Purchases and redemptions of Fund shares will be made at the daily net
asset value established by the Fund (before any commission).
23
Frequent Trading Policy
The
Funds are intended for long-term investment and do not permit rapid trading. The
Board of Trustees has adopted a Frequent Trading Policy that attempts to
identify and limit rapid trading. Rapid trading may lead to higher portfolio
turnover, which may negatively affect performance or increase costs, thereby
adversely affecting other shareowners.
To
the extent reasonably practicable, the Funds monitor trading in Fund shares in
an effort to identify trading patterns that appear to indicate frequent
purchases and redemptions that might violate the Frequent Trading Policy. If a
Fund, the transfer agent, or a Fund’s manager, based on the information
available, believes that it has identified a pattern of such trading (whether
directly through the Fund, indirectly through an intermediary, or otherwise), it
may, in its sole discretion, temporarily or permanently bar future purchases of
shares of the Fund (or any other fund managed by the adviser) by the account
holder, or any accounts under common control (such as those advised by an
investment manager or any other type of asset allocator).
In
making such a judgment, factors considered may include the size of the trades,
the frequency and pattern of trades, the methods used to communicate orders, and
other factors considered relevant.
Although
this process involves judgments that are inherently subjective, the Funds seek
to make decisions that are consistent with the interests of the Funds’
shareowners. The Funds reserve the right to refuse or revoke any purchase order
for any reason the Fund, the transfer agent, or a Fund’s manager believes to be
contrary to the Frequent Trading Policy.
The
Funds often receive orders through financial intermediaries who trade Fund
shares through omnibus accounts (i.e., a single account in which the
transactions of individual shareowners are combined). When possible, the Funds
obtain contractual agreements with intermediaries to enforce the Funds’
redemption policies, and rely on intermediaries to have reasonable procedures in
place to detect and prevent market timing of Fund shares. The Funds cannot
always identify all intermediaries, or detect or prevent trading that violates
the Frequent Trading Policy through intermediaries or omnibus accounts. Some
intermediaries trade shares of several funds and cannot always enforce a
particular fund’s policies.
Tax Consequences
Dividends
and capital gains distributions may be subject to income tax, whether they are
paid in cash or reinvested in additional Fund shares, depending on the type of
distribution, the type of your account, and your city, state, and country of tax
residence. Income dividends paid by the Income, Growth, and Developing World
Funds are normally eligible for the “qualified dividend income” tax rate.
Investors
may realize a capital gain or loss on any redemption or exchange of Fund shares.
Shareowners
receive quarterly statements. The year-end statement should be retained for tax
accounting. As transfer agent, Saturna Capital Corporation keeps each account’s
entire investment transaction history and helps shareowners maintain the tax
records needed to determine reportable capital gains and losses as well as
dividend income.
Each
February, the Funds’ transfer agent reports to each shareowner (consolidated by
US taxpayer identification number) and to the IRS the amount of each redemption
transaction of the shareowner and the amount of dividends and capital gains
distributions he or she received for the preceding calendar year. Capital gains
a Fund distributes may be taxed at different rates, depending on the length of
time the Fund held its investments on which the gains were realized.
Tax
regulations require reporting cost basis information to you and the Internal
Revenue Service on Form 1099-B. This information is reported using a cost basis
method selected by you or, in the event no cost basis method was selected, our
default method (FIFO - First In, First Out). Please note that the cost basis
information reported to you may not always be the same as what you report on
your tax return as different rules may apply. You should save your transaction
records to make sure the information reported on your tax return is accurate.
To
avoid being subject to federal backup withholding tax on dividends and other
distributions, you must furnish your correct Social Security or other tax payer
identification number when you open an account.
Distributions
to shareowners who are not US tax payers may be subject to withholding tax
unless an applicable tax treaty provides for a reduced rate or exemption.
Capital gains distributions paid by the Funds are not subject to foreign
withholding.
The
Trust places no formal restrictions on portfolio turnover and the Funds’
investment adviser will buy or sell investments per its appraisal of the factors
affecting each investment, such as its business, its industry, and the market.
The Amana Income Fund and Amana Growth Fund have historically had low portfolio
turnover, and their portfolio turnover is expected to be lower than that of
comparable actively-managed equity funds. Each Fund’s portfolio manager seeks to
minimize income taxes through a “buy and hold” strategy with low portfolio
turnover, offsetting capital gains with losses, and selling highest cost tax
lots first. A Fund’s portfolio investments may have a higher level of unrealized
capital appreciation than if the Fund did not use these strategies. During
periods of net redemptions, or when market conditions warrant, the portfolio
manager may sell these investments, generating a higher level of capital gains
distributions than would occur if the Fund had not used these low-turnover
strategies.
Distribution Arrangements
The
Trust has a distribution plan under Rule 12b-1 that allows it to pay
distribution and other costs for the sale of Investor Shares and services
provided to shareowners. Under the plan, Investor Shares may pay up to 0.25%
annually of their average daily net assets. Because these costs are paid out of
Investor Share assets on an ongoing basis, over time these costs will increase
the cost of your investment in Income Fund, Growth Fund, Developing World Fund,
and Participation Fund Investor Shares and may cost you more than paying other
types of sales charges. Institutional Shares do not pay 12b-1 fees.
Shares
may be purchased and sold through intermediaries, such as broker-dealers and
retirement plan administrators, having agreements with the Funds. These
intermediaries may charge investors and/or require the adviser/distributor to
the Funds to share revenues for their services. Any such payments are in
24
addition
to any distribution and service fees paid out of the Trust’s 12b-1 plan and
could be characterized as “revenue sharing.” An intermediary’s receipt or
expectation of receipt could influence an intermediary’s recommendation of the
Funds. You should review your intermediary’s compensation practices. For more
information, see the Trust’s Statement of Additional Information.
25
Amana
Income Fund: Financial Highlights
Investor
Shares (AMANX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$59.34 |
$61.52 |
$50.03 |
$48.32 |
$48.91 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.59 |
0.59 |
0.58 |
0.67 |
0.61 |
Net
gains on securities (both realized and unrealized) |
1.91 |
0.37 |
14.53 |
5.17 |
1.80 |
Total
from investment operations |
2.50 |
0.96 |
15.11 |
5.84 |
2.41 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.55) |
(0.55) |
(0.56) |
(0.66) |
(0.62) |
Distributions
(from capital gains) |
(3.98) |
(2.59) |
(3.06) |
(3.47) |
(2.38) |
Total
distributions |
(4.53) |
(3.14) |
(3.62) |
(4.13) |
(3.00) |
|
|
|
|
|
|
Net
asset value at end of year |
$57.31 |
$59.34 |
$61.52 |
$50.03 |
$48.32 |
|
|
|
|
|
|
Total
Return |
4.35% |
1.16% |
30.87% |
11.77% |
5.35% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$747,787 |
$746,534 |
$841,439 |
$735,565 |
$805,610 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
1.02% |
1.01% |
1.04% |
1.06% |
1.11% |
After
custodian fee credits |
1.02% |
1.01% |
1.04% |
1.06% |
1.10% |
Ratio
of net investment income after custodian fee credits to average net
assets |
1.03% |
0.94% |
1.03% |
1.31% |
1.22% |
Portfolio
turnover rate |
8% |
5% |
5% |
0% |
1% |
Institutional
Shares (AMINX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$58.79 |
$61.04 |
$49.72 |
$48.12 |
$48.72 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.72 |
0.74 |
0.71 |
0.78 |
0.74 |
Net
gains on securities (both realized and unrealized) |
1.90 |
0.37 |
14.42 |
5.13 |
1.79 |
Total
from investment operations |
2.62 |
1.11 |
15.13 |
5.91 |
2.53 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.74) |
(0.77) |
(0.75) |
(0.84) |
(0.75) |
Distributions
(from capital gains) |
(3.98) |
(2.59) |
(3.06) |
(3.47) |
(2.38) |
Total
distributions |
(4.72) |
(3.36) |
(3.81) |
(4.31) |
(3.13) |
|
|
|
|
|
|
Net
asset value at end of year |
$56.69 |
$58.79 |
$61.04 |
$49.72 |
$48.12 |
|
|
|
|
|
|
Total
Return |
4.61% |
1.40% |
31.14% |
11.96% |
5.63% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$827,401 |
$788,724 |
$703,695 |
$533,239 |
$472,724 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
0.78% |
0.77% |
0.80% |
0.83% |
0.87% |
After
custodian fee credits |
0.77% |
0.77% |
0.79% |
0.82% |
0.86% |
Ratio
of net investment income after custodian fee credits to average net
assets |
1.27% |
1.19% |
1.27% |
1.55% |
1.47% |
Portfolio
turnover rate |
8% |
5% |
5% |
0% |
1% |
A |
Calculated
using average shares outstanding |
27
Amana
Growth Fund: Financial Highlights
Investor
nvestor Shares (AMAGX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$60.47 |
$61.17 |
$45.39 |
$39.31 |
$36.24 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.12 |
0.05 |
0.10 |
0.15 |
0.13 |
Net
gains (losses) on securities (both realized and unrealized) |
3.86 |
(0.37) |
18.74 |
7.33 |
4.14 |
Total
from investment operations |
3.98 |
(0.32) |
18.84 |
7.48 |
4.27 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.10) |
(0.05) |
(0.13) |
(0.16) |
(0.16) |
Distributions
(from capital gains) |
(1.99) |
(0.33) |
(2.93) |
(1.24) |
(1.04) |
Total
distributions |
(2.09) |
(0.38) |
(3.06) |
(1.40) |
(1.20) |
|
|
|
|
|
|
Net
asset value at end of year |
$62.36 |
$60.47 |
$61.17 |
$45.39 |
$39.31 |
|
|
|
|
|
|
Total
Return |
6.83% |
(0.62)% |
42.16% |
19.12% |
12.28% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$1,865,385 |
$1,684,412 |
$1,735,349 |
$1,303,469 |
$1,263,423 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
0.91% |
0.91% |
0.96% |
1.02% |
1.08% |
After
custodian fee credits |
0.91% |
0.90% |
0.96% |
1.02% |
1.08% |
Ratio
of net investment income after custodian fee credits to average net
assets |
0.21% |
0.09% |
0.19% |
0.36% |
0.34% |
Portfolio
turnover rate |
6% |
3%B |
3%B |
0%C |
0% |
Institutional
Shares (AMIGX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$60.80 |
$61.50 |
$45.60 |
$39.49 |
$36.37 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.27 |
0.22 |
0.24 |
0.28 |
0.23 |
Net
gains (losses) on securities (both realized and unrealized) |
3.88 |
(0.38) |
18.84 |
7.34 |
4.15 |
Total
from investment operations |
4.15 |
(0.16) |
19.08 |
7.62 |
4.38 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.25) |
(0.21) |
(0.25) |
(0.27) |
(0.22) |
Distributions
(from capital gains) |
(1.99) |
(0.33) |
(2.93) |
(1.24) |
(1.04) |
Total
distributions |
(2.24) |
(0.54) |
(3.18) |
(1.51) |
(1.26) |
|
|
|
|
|
|
Net
asset value at end of year |
$62.71 |
$60.80 |
$61.50 |
$45.60 |
$30.49 |
|
|
|
|
|
|
Total
Return |
7.09% |
(0.40)% |
42.53% |
19.39% |
12.54% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$1,959,054 |
$1,489,810 |
$1,291,092 |
$859,154 |
$724,520 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
0.67% |
0.64% |
0.71% |
0.79% |
0.84% |
After
custodian fee credits |
0.66% |
0.64% |
0.71% |
0.78% |
0.84% |
Ratio
of net investment income after custodian fee credits to average net
assets |
0.46% |
0.32% |
0.43% |
0.60% |
0.58% |
Portfolio
turnover rate |
6% |
3%B |
3%B |
0%C |
0% |
A |
Calculated
using average shares outstanding |
B |
As
restated to reflect the exclusion of redemptions in-kind, which reduced
the percentage by 4% and 2% for the year ended May 31, 2022 and 2021,
respectively. |
C |
Amount
is less than 0.5% |
28
Amana
Developing World Fund: Financial Highlights
Investor
Shares (AMDWX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$11.85 |
$13.70 |
$9.67 |
$9.33 |
$10.05 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.13 |
0.21 |
0.05 |
0.04 |
0.03 |
Net
gains (losses) on securities (both realized and unrealized) |
(0.17) |
(1.90) |
3.98 |
0.34 |
(0.70) |
Total
from investment operations |
(0.04) |
(1.69) |
4.03 |
0.38 |
(0.67) |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.08) |
(0.16) |
– |
(0.04) |
(0.05) |
Distributions
(from capital gains) |
(0.03) |
– |
– |
– |
– |
Total
distributions |
(0.11) |
(0.16) |
– |
(0.04) |
(0.05) |
|
|
|
|
|
|
Net
asset value at end of year |
$11.70 |
$11.85 |
$13.70 |
$9.67 |
$9.33 |
|
|
|
|
|
|
Total
Return |
(0.25)% |
(12.47)% |
41.68% |
4.02% |
(6.70)% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$29,446 |
$23,123 |
$22,553 |
$13,253 |
$15,026 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
1.22% |
1.21% |
1.20% |
1.34% |
1.36% |
After
custodian fee credits |
1.15% |
1.14% |
1.14% |
1.29% |
1.31% |
Ratio
of net investment income after custodian fee credits to average net
assets |
1.11% |
1.59% |
0.44% |
0.38% |
0.35% |
Portfolio
turnover rate |
6% |
30% |
3% |
9% |
9% |
Institutional
Shares (AMIDX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023 |
2022 |
2021 |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of year |
$11.90 |
$13.77 |
$9.70 |
$9.36 |
$10.08 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeA |
0.15 |
0.24 |
0.08 |
0.04 |
0.05 |
Net
gains (losses) on securities (both realized and unrealized) |
(0.17) |
(1.90) |
3.99 |
0.36 |
(0.72) |
Total
from investment operations |
(0.02) |
(1.66) |
4.07 |
0.40 |
(0.67) |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.11) |
(0.21) |
– |
(0.06) |
(0.05) |
Distributions
(from capital gains) |
(0.03) |
– |
– |
– |
– |
Total
distributions |
(0.14) |
(0.21) |
– |
(0.06) |
(0.05) |
|
|
|
|
|
|
Net
asset value at end of year |
$11.74 |
$11.90 |
$13.77 |
$9.70 |
$9.36 |
|
|
|
|
|
|
Total
Return |
(0.12)% |
(12.24)% |
41.96% |
4.20% |
(6.58)% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$54,611 |
$46,715 |
$42,241 |
$18,959 |
$15,127 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
1.01% |
0.99% |
0.97% |
1.21% |
1.19% |
After
custodian fee credits |
0.94% |
0.92% |
0.91% |
1.16% |
1.14% |
Ratio
of net investment income after custodian fee credits to average net
assets |
1.31% |
1.80% |
0.65% |
0.43% |
0.54% |
Portfolio
turnover rate |
6% |
30% |
3% |
9% |
9% |
A |
Calculated
using average shares outstanding |
29
Amana
Participation Fund: Financial Highlights
Investor
Shares (AMAPX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023A |
2022A |
2021A |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of period |
$9.86 |
$10.42 |
$10.12 |
$9.97 |
$9.76 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeB |
0.21 |
0.18 |
0.19 |
0.24 |
0.24 |
Net
gains (losses) on securities (both realized and unrealized) |
(0.24) |
(0.57) |
0.30 |
0.14 |
0.21 |
Total
from investment operations |
(0.03) |
(0.39) |
0.49 |
0.38 |
0.45 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.19) |
(0.17) |
(0.19) |
(0.23) |
(0.24) |
Total
distributions |
(0.19) |
(0.17) |
(0.19) |
(0.23) |
(0.24) |
Net
asset value at end of period |
$9.64 |
$9.86 |
$10.42 |
$10.12 |
$9.97 |
|
|
|
|
|
|
Total
Return |
(0.26)% |
(3.83)% |
4.90% |
3.88% |
4.70% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$26,650 |
$24,722 |
$22,375 |
$16,531 |
$20,612 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
0.80% |
0.80% |
0.82% |
0.88% |
0.88% |
After
custodian fee credits |
0.78% |
0.78% |
0.80% |
0.86% |
0.87% |
Ratio
of net investment income after custodian fee credit to average net
assets |
2.11% |
1.71% |
1.86% |
2.34% |
2.46% |
Portfolio
turnover rate |
48% |
15% |
19% |
34% |
22% |
Institutional
Shares (AMIPX) Selected
data per share of outstanding capital stock throughout each
year: |
Year
ended May 31, |
2023A |
2022A |
2021A |
2020 |
2019 |
A |
A |
A |
A |
A |
A |
Net
asset value at beginning of period |
$9.89 |
$10.45 |
$10.16 |
$10.00 |
$9.79 |
Income
from investment operations |
|
|
|
|
|
Net
investment incomeB |
0.23 |
0.20 |
0.22 |
0.26 |
0.27 |
Net
gains (losses) on securities (both realized and unrealized) |
(0.22) |
(0.57) |
0.29 |
0.16 |
0.21 |
Total
from investment operations |
0.01 |
(0.37) |
0.51 |
0.42 |
0.48 |
Less
distributions |
|
|
|
|
|
Dividends
(from net investment income) |
(0.22) |
(0.19) |
(0.22) |
(0.26) |
(0.27) |
Total
distributions |
(0.22) |
(0.19) |
(0.22) |
(0.26) |
(0.27) |
Net
asset value at end of period |
$9.68 |
$9.89 |
$10.45 |
$10.16 |
$10.00 |
|
|
|
|
|
|
Total
Return |
0.09% |
(3.58)% |
5.04% |
4.23% |
4.93% |
|
|
|
|
|
|
Ratios
/ supplemental data |
|
|
|
|
|
Net
assets ($000), end of year |
$192,060 |
$187,032 |
$143,404 |
$100,023 |
$55,716 |
Ratio
of expenses to average net assets |
|
|
|
|
|
Before
custodian fee credits |
0.56% |
0.56% |
0.58% |
0.63% |
0.64% |
After
custodian fee credits |
0.53% |
0.54% |
0.56% |
0.61% |
0.63% |
Ratio
of net investment income after custodian fee credit to average net
assets |
2.34% |
1.97% |
2.10% |
2.53% |
2.70% |
Portfolio
turnover rate |
48% |
15% |
19% |
34% |
22% |
A |
Consolidated |
B |
Calculated
using average shares outstanding |
30
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