SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Investment Company Act file number: 002-96924
AMANA MUTUAL FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)
1300 N. State Street
Bellingham, Washington 98225-4730
(Address of Principal Executive Offices, including ZIP Code)
Thomas R. Phillips
1300 N. State Street
Bellingham, Washington 98225-4730
(Name and Address of Agent for Service)
Registrant's Telephone Number — (360) 734-9900
Date of fiscal year end: May 31, 2015
Date of reporting period: November 30, 2014
(graphic omitted) Amana Mutual Funds TrustSemi-Annual ReportNovember 30, 2014 |
Income Fund AMANX | AMINX |
Growth Fund AMAGX | AMIGX |
|
Developing World Fund AMDWX | AMIDX |
Average Annual Returns (before any taxes paid by shareowners) |
1 Year |
3 Year |
5 Year |
10 Year |
Expense Ratio¹ |
Amana Income Fund Investor Shares (AMANX) |
9.13% |
15.78% |
12.17% |
10.04% |
1.15% |
Amana Income Fund Institutional Shares (AMINX) |
9.42% |
n/a |
n/a |
n/a |
0.90% |
Amana Growth Fund Investor Shares (AMAGX) |
14.03% |
15.92% |
12.12% |
9.90% |
1.10% |
Amana Growth Fund Institutional Shares (AMIGX) |
14.29% |
n/a |
n/a |
n/a |
0.87% |
Amana Developing World Fund Investor Shares (AMDWX) |
0.76% |
2.22% |
0.75% |
n/a |
1.59% |
Amana Developing World Fund Institutional Shares (AMIDX) |
1.05% |
n/a |
n/a |
n/a |
1.40% |
Morningstar™ Ratings² |
Overall |
3 Year |
5 Year |
10 Year |
Amana Income Fund — "Large Blend" Category |
||||
Investor Shares (AMANX) |
★ ★ ★ |
★ ★ |
★ ★ |
★ ★ ★ ★ ★ |
Institutional Shares (AMINX) |
☆ ☆ ☆ |
☆ ☆ |
☆ ☆ |
☆ ☆ ☆ ☆ ☆ |
Number of Funds in Category |
1,336 |
1,336 |
1,193 |
812 |
Amana Growth Fund — "Large Growth" Category |
||||
Investor Shares (AMAGX) |
★ ★ ★ ★ |
★ ★ |
★ ★ |
★ ★ ★ ★ ★ |
Institutional Shares (AMIGX) |
☆ ☆ ☆ ☆ |
☆ ☆ |
☆ ☆ |
☆ ☆ ☆ ☆ ☆ |
Number of Funds in Category |
1,528 |
1,528 |
1,324 |
909 |
Amana Developing World Fund — "Diversified Emerging Markets" Category |
||||
Investor Shares (AMDWX) |
★ ★ ★ ★ |
★ ★ ★ |
★ ★ ★ ★ |
n/a |
Institutional Shares (AMIDX) |
☆ ☆ ☆ ☆ |
☆ ☆ ☆ |
☆ ☆ ☆ ☆ |
n/a |
Number of Funds in Category |
521 |
521 |
341 |
n/a |
Lipper Quintile Rankings³ |
1 Year |
3 Year |
5 Year |
10 Year |
Amana Income Fund — "Equity Income" Category |
||||
Investor Shares (AMANX) |
4th |
4th |
4th |
1st |
Institutional Shares (AMINX) |
4th |
n/a |
n/a |
n/a |
Number of Funds in Category |
483 |
340 |
273 |
163 |
Amana Growth Fund — "Multi-Cap Growth" Category |
||||
Investor Shares (AMAGX) |
1st |
5th |
5th |
1st |
Institutional Shares (AMIGX) |
1st |
n/a |
n/a |
n/a |
Number of Funds in Category |
557 |
474 |
417 |
269 |
Amana Developing World Fund — "Emerging Markets" Category |
||||
Investor Shares (AMDWX) |
1st |
4th |
4th |
n/a |
Institutional Shares (AMIDX) |
1st |
n/a |
n/a |
n/a |
Number of Funds in Category |
724 |
513 |
329 |
150 |
Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results. Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-888-732-6262 or visiting www.amanafunds.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The Amana Funds limit the securities they purchase to those consistent with Islamic principles, which limits opportunities and may increase risk.
Please consider an investment's objective, risks, charges, and expenses carefully before investing. To obtain a free prospectus or summary prospectus that contains this and other important information on the Amana Funds, please call toll-free 1-888-732-6262 or visit www.amanafunds.com. Please read the prospectus or summary prospectus carefully before investing.
¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus which is dated August 15, 2014, and incorporates results for the fiscal year ended May 31, 2014. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. Also by regulation, the performance in this table represents the most recent calendar quarter-end performance rather than performance through the Funds' most recent fiscal period.
² Source: Morningstar December 31, 2014. Morningstar, Inc. is an independent fund performance monitor. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of performance figures associated with its 3, 5, and 10 year (if applicable) Morningstar Rating metrics. Morningstar ratings represented as unshaded stars are based on extended performance. These extended performance ratings are based on the historical adjusted returns prior to the inception date of the institutional shares and reflect the historical performance of the investor shares, adjusted to reflect the fees and expenses of the institutional shares.
³ Source: Lipper Inc., A Thomson Reuters Company, December 31, 2014. Lipper Inc. is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are based on past performance with capital gains and dividends reinvested.
2 |
Semi-Annual Report November 30, 2014 |
Equity markets generally appreciated for Amana's six-month fiscal period ended November 30, 2014. Total return for the S&P 500 Index was 8.58% and the broader Dow Jones Islamic Market World Index was 3.14%. Smaller US companies slightly underperformed, with the Russell 2000 Index up 4.10% for the period. Foreign markets were more difficult, with the MSCI Emerging Markets Index declining -0.82%.
Amana Growth Investor Shares returned a strong 10.81%, Amana Income Investor Shares returned 5.23%, and Amana Developing World Investor Shares gained 1.47% during the same period. Institutional shares posted slightly better returns: Amana Growth 10.95%, Amana Income 5.36%, and Amana Developing World 1.56%.
The Amana Funds follow Islamic principles, which preclude most investments in the banking and financial sectors. We favor companies with low debt levels and strong balance sheets.
Top Long-Term Results
As experienced investors, we know that gains or losses over a short interval tell an incomplete story compared to performance evaluated over a lengthier time span. That's why the recognition that Amana continues to receive for superlative long-term performance is so important to our shareowners.
As of November 30, 2014, Amana Income Investor Shares and Amana Growth Investor Shares maintained top quintile rankings in their respective mutual fund categories. Amana Income Investor Shares ranked #5 (out of 161 similar funds) in Lipper's Equity Income category for 10-year performance. Amana Growth Investor Shares ranked #31 (out of 268 similar funds) in the Multi-Cap Growth category for 10-year performance.
Also as of November 30, 2014, Amana Growth continued to earn a "Four Star" Morningstar Overall rating. Morningstar's analysts rank both Amana Income and Amana Growth with "Silver Shield" Analyst Ratings. The Analyst Ratings evaluate mutual funds based on five key pillars that Morningstar believes indicate funds that are more likely to outperform over the long term on a risk-adjusted basis. Please refer to the preceding page and following page for Amana's December 31 and November 30 longer-term performance data, respectively.
Institutional Shares
Amana's shareowners approved its reorganization into a Delaware trust, allowing the introduction of Institutional Shares for all three Funds on September 25, 2013. Without 12b-1 distribution expenses and related services, lower-cost Institutional Shares are proving popular. By November 30, 2014, Amana's Institutional share assets totaled more than $219 million.
Going Forward
The US economy is leading the world: unemployment has declined, incomes are rising, tax receipts are strong, and consumer spending is up. The strong US currency is attracting money from around the world. Consumer confidence has recovered, and low interest rates are boosting auto sales and housing. Republican control of Congress should moderate the growth in federal spending. Corporate earnings for 2015 may not improve over a healthy 2014, but the outlook for every industry varies.
The future is always different from the past, and we vigilantly watch for significant changes in major trends. Inflation, for example, looks to be dead for years to come. After a fifty-year expansion built on ever-increasing credit, we welcome deleveraging by governments and consumers. Commodity prices are at the lowest level in more than a dozen years, and recently oil has fallen by more than half. More efficient, web-based organizations are deflationary, meaning the internet's main effect on business is broadly lower prices and less need for employment. Yet, regardless of the trend, Amana will consistently invest in companies with histories of solid revenues, earnings, dividends, and balance sheets. Our focus on low-debt investing means rising interest rates, which many forecast for 2015, will have less impact on our portfolios.
We watch expenses carefully and are pleased to report declines in the annualized expense ratios of all three Funds. For the six months, Amana Income Investor Shares report an expense ratio of 1.12%, Amana Growth Investor Shares 1.08%, and Amana Developing World Investor Shares 1.48%. Institutional shares save the 12b-1 fee which results in significantly lower expense ratios. For the six months, Amana Income Institutional Shares report an expense ratio of 0.87%, Amana Growth Institutional Shares 0.83%, and Amana Developing World Institutional Shares 1.18%.
Amana Mutual Funds embody basic principles of sound finance: good governance, transparency, fairness, and risk sharing. The Trustees are active, taking seriously their responsibilities to shareowners. For more information, please visit www.amanafunds.com or call 1-888-732-6262.
Respectfully,
(photo omitted)
Nicholas Kaiser,
President & Portfolio Manager
(photo omitted)
M. Yaqub Mirza,
Independent Board Chairman
Semi-Annual Report November 30, 2014 | 3 |
Morningstar™ Ratings¹ |
Overall |
3 Year |
5 Year |
10 Year |
Amana Income Fund — "Large Blend" Category |
||||
Investor Shares (AMANX) |
★ ★ ★ |
★ ★ |
★ ★ |
★ ★ ★ ★ ★ |
Institutional Shares (AMINX) |
☆ ☆ ☆ |
☆ ☆ |
☆ ☆ |
☆ ☆ ☆ ☆ ☆ |
Number of Funds in Category |
1,327 |
1,327 |
1,187 |
800 |
Amana Growth Fund — "Large Growth" Category |
||||
Investor Shares (AMAGX) |
★ ★ ★ ★ |
★ ★ |
★ ★ |
★ ★ ★ ★ ★ |
Institutional Shares (AMIGX) |
☆ ☆ ☆ ☆ |
☆ ☆ |
☆ ☆ |
☆ ☆ ☆ ☆ ☆ |
Number of Funds in Category |
1,496 |
1,496 |
1,324 |
905 |
Amana Developing World Fund — "Diversified Emerging Markets" Category |
||||
Investor Shares (AMDWX) |
★ ★ ★ |
★ ★ ★ |
★ ★ ★ |
n/a |
Institutional Shares (AMIDX) |
☆ ☆ ☆ |
☆ ☆ ☆ |
☆ ☆ ☆ |
n/a |
Number of Funds in Category |
515 |
515 |
334 |
n/a |
Lipper Quintile Rankings² |
1 Year |
3 Year |
5 Year |
10 Year |
Amana Income Fund — "Equity Income" Category |
||||
Investor Shares (AMANX) |
4th |
4th |
4th |
1st |
Institutional Shares (AMINX) |
3rd |
n/a |
n/a |
n/a |
Number of Funds in Category |
476 |
335 |
271 |
161 |
Amana Growth Fund — "Multi-Cap Growth" Category |
||||
Investor Shares (AMAGX) |
1st |
5th |
5th |
1st |
Institutional Shares (AMIGX) |
1st |
n/a |
n/a |
n/a |
Number of Funds in Category |
551 |
468 |
416 |
268 |
Amana Developing World Fund — "Emerging Markets" Category |
||||
Investor Shares (AMDWX) |
2nd |
4th |
4th |
n/a |
Institutional Shares (AMIDX) |
2nd |
n/a |
n/a |
n/a |
Number of Funds in Category |
695 |
510 |
324 |
148 |
Performance data quoted above represents past performance and is no guarantee of future results. Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-888-732-6262 or visiting www.amanafunds.com.
¹ Source: Morningstar November 30, 2014. Morningstar, Inc. is an independent fund performance monitor. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return™ measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a fund is derived from a weighted average of performance figures associated with its 3, 5, and 10 year (if applicable) Morningstar Rating™ metrics. Morningstar ratings represented as unshaded stars are based on extended performance. These extended performance ratings are based on the historical adjusted returns prior to the inception date of the institutional shares and reflect the historical performance of the investor shares, adjusted to reflect the fees and expenses of the institutional shares.
² Source: Lipper Inc., A Thomson Reuters Company, November 30, 2014. Lipper Inc. is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Quintile Rankings are based on past performance with capital gains and dividends reinvested.
The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five-pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, but the assessment of each pillar and how they are combined is driven by the analyst's overall assessment and overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.
The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. A fund with a "Silver" rating has notable advantages across several, but perhaps not all, of the five pillars — strengths that give the analysts a high level of conviction. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a "Neutral" rating isn't seriously flawed across the five pillars, nor does it distinguish itself very positively. A "Negative"-rated fund is flawed in at least one pillar, if not more, and is considered an inferior offering to its peers. Analyst Ratings are re-evaluated every 14 months. For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to www.morningstar.com.
The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar's current expectations about future events; therefore, in no way does Morningstar or Amana Mutual Funds represent ratings as a guarantee, nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties, which may cause Morningstar's expectations not to occur or to differ significantly from what was expected.
4 |
Semi-Annual Report November 30, 2014 |
Average Annual Returns (as of November 30, 2014)
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMANX) |
12.06% |
12.86% |
10.35% |
1.15% |
Institutional Shares (AMINX)² |
12.33% |
n/a |
n/a |
0.90% |
S&P 500 Index |
16.86% |
15.96% |
8.06% |
n/a |
Growth of $10,000
Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in Investor Shares of the Fund on November 30, 2004, to an identical amount invested in the S&P 500 Index, a broad-based stock market index. The graph shows that an investment in Investor Shares of the Fund would have risen to $26,763 versus $21,714 in the Index. Please note that investors cannot invest directly in the index. |
|
Past performance does not guarantee future results. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus, which is dated August 15, 2014, and incorporates results for the fiscal year ended May 31, 2014. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. ² Institutional shares of the Amana Income Fund began operations September 25, 2013. |
Fund Objective
The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective.
Top Ten Holdings |
Portfolio Diversification |
|||||
% of Total Net Assets |
% of Total Net Assets |
|||||
Nike |
3.3% |
Large Pharmaceuticals |
17.5% |
█ | ||
Microsoft |
2.9% |
Household Products Manufacturing |
7.8% |
█ | ||
Illinois Tool Works |
2.9% |
Basic & Diversified Chemicals |
7.6% |
█ | ||
Bristol-Myers Squibb |
2.9% |
Containers & Packaging Manufacturing |
5.5% |
█ | ||
Canadian National Railway |
2.9% |
Integrated Oils |
5.1% |
█ | ||
PPG Industries |
2.7% |
Food Manufacturing |
5.1% |
█ | ||
Novartis ADS |
2.7% |
Industrial Automation Controls |
4.2% |
█ | ||
Eli Lilly |
2.6% |
Semiconductor Devices |
4.0% |
█ | ||
Colgate-Palmolive |
2.6% |
Specialty Chemicals |
3.5% |
█ | ||
3M |
2.6% |
Apparel, Footwear, Accessory Design |
3.3% |
█ | ||
Infrastructure Software |
2.9% |
█ | ||||
Rail Freight Transportation |
2.9% |
█ | ||||
Roofing Materials Manufacturing |
2.5% |
█ | ||||
Automotive Wholesale |
2.5% |
█ | ||||
Measurement Instruments |
2.3% |
█ | ||||
Industrial Supply Distribution |
2.3% |
█ | ||||
Flow Control Equipment |
2.2% |
█ | ||||
Semiconductor Manufacturing Services |
2.2% |
█ | ||||
Beverages |
2.1% |
█ | ||||
Post & Courier Services |
2.0% |
█ | ||||
Other industries < 2.0% |
10.2% |
█ | ||||
Cash and equivalents |
2.3% |
█ |
Semi-Annual Report November 30, 2014 | 5 |
Common Stocks — 97.7% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Communications |
||||
Local Media |
||||
Pearson ADS |
300,000 |
$4,106,896 |
$5,793,000 |
0.4% |
Telecom Carriers |
||||
Chunghwa Telecom ADS |
217,475 |
4,630,330 |
6,543,823 |
0.4% |
Telus |
168,000 |
3,783,808 |
6,384,000 |
0.4% |
Verizon |
65,750 |
3,091,565 |
3,326,293 |
0.2% |
11,505,703 |
16,254,116 |
1.0% |
||
15,612,599 |
22,047,116 |
1.4% |
||
Consumer Discretionary |
||||
Apparel, Footwear, Accessory Design |
||||
Nike |
540,000 |
16,647,545 |
53,616,600 |
3.3% |
Auto Parts |
||||
Johnson Controls |
600,000 |
17,273,567 |
30,000,000 |
1.9% |
Automotive Wholesale |
||||
Genuine Parts |
400,000 |
15,835,680 |
41,112,000 |
2.5% |
Home Improvement |
||||
Stanley Black & Decker |
100,000 |
6,793,209 |
9,444,000 |
0.6% |
56,550,001 |
134,172,600 |
8.3% |
||
Consumer Staples |
||||
Beverages |
||||
PepsiCo |
340,000 |
21,040,203 |
34,034,000 |
2.1% |
Food Manufacturing |
||||
General Mills |
600,000 |
19,156,589 |
31,650,000 |
1.9% |
JM Smucker |
250,000 |
13,340,013 |
25,642,500 |
1.6% |
Kellogg |
47,600 |
2,009,010 |
3,153,500 |
0.2% |
McCormick & Co |
300,000 |
14,110,805 |
22,299,000 |
1.4% |
48,616,417 |
82,745,000 |
5.1% |
||
Household Products Manufacturing |
||||
Colgate-Palmolive |
600,000 |
21,167,901 |
41,754,000 |
2.6% |
Kimberly-Clark |
300,000 |
18,575,746 |
34,977,000 |
2.2% |
Procter & Gamble |
400,000 |
23,489,880 |
36,172,000 |
2.2% |
Unilever ADS |
325,000 |
8,850,327 |
13,695,500 |
0.8% |
72,083,854 |
126,598,500 |
7.8% |
||
141,740,474 |
243,377,500 |
15.0% |
||
Energy |
||||
Exploration & Production |
||||
EnCana |
100,000 |
2,242,238 |
1,578,000 |
0.1% |
Continued on next page. |
6 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Common Stocks — 97.7% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Energy (continued) |
||||
Integrated Oils |
||||
Cenovus |
400,000 |
$10,078,223 |
$8,840,000 |
0.5% |
ConocoPhillips |
330,000 |
13,482,952 |
21,803,100 |
1.3% |
Exxon Mobil |
350,000 |
23,656,109 |
31,689,000 |
2.0% |
Total ADS |
375,000 |
20,975,783 |
20,861,250 |
1.3% |
68,193,067 |
83,193,350 |
5.1% |
||
Refining & Marketing |
||||
Phillips 66 |
210,000 |
6,845,517 |
15,334,200 |
0.9% |
77,280,822 |
100,105,550 |
6.1% |
||
Health Care |
||||
Health Care Supplies |
||||
Becton, Dickinson & Co. |
150,000 |
10,590,690 |
21,049,500 |
1.3% |
Large Pharmaceuticals |
||||
Abbott Laboratories |
350,000 |
8,392,885 |
15,578,500 |
1.0% |
AbbVie |
350,000 |
9,148,094 |
24,220,000 |
1.5% |
AstraZeneca ADS |
134,229 |
6,065,511 |
9,955,765 |
0.6% |
Bristol-Myers Squibb |
800,000 |
19,124,096 |
47,240,000 |
2.9% |
Eli Lilly |
620,000 |
22,314,728 |
42,234,400 |
2.6% |
GlaxoSmithKline ADS |
600,000 |
23,543,156 |
27,870,000 |
1.7% |
Johnson & Johnson |
331,500 |
22,804,119 |
35,884,875 |
2.2% |
Novartis ADS |
450,000 |
22,518,080 |
43,492,500 |
2.7% |
Pfizer |
1,200,000 |
22,076,629 |
37,380,000 |
2.3% |
155,987,298 |
283,856,040 |
17.5% |
||
Medical Equipment |
||||
Halyard Health¹ |
37,500 |
805,646 |
1,470,375 |
0.1% |
167,383,634 |
306,375,915 |
18.9% |
||
Industrials |
||||
Aerospace & Defense Parts |
||||
United Technologies |
250,000 |
14,326,612 |
27,520,000 |
1.7% |
Flow Control Equipment |
||||
Parker Hannifin |
275,000 |
12,527,667 |
35,483,250 |
2.2% |
Industrial Automation Controls |
||||
Emerson Electric |
450,000 |
20,934,219 |
28,687,500 |
1.8% |
Honeywell International |
400,000 |
17,421,205 |
39,628,000 |
2.4% |
38,355,424 |
68,315,500 |
4.2% |
||
Industrial Machinery Manufacturing |
||||
Regal-Beloit |
65,000 |
2,484,858 |
4,700,800 |
0.3% |
Industrial Supply Distribution |
||||
W.W. Grainger |
150,000 |
14,706,937 |
36,852,000 |
2.3% |
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 7 |
Common Stocks — 97.7% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Industrials (continued) |
||||
Measurement Instruments |
||||
Rockwell Automation |
325,000 |
$15,208,967 |
$37,508,250 |
2.3% |
Post & Courier Services |
||||
United Parcel Service |
300,000 |
19,152,084 |
32,976,000 |
2.0% |
Rail Freight Transportation |
||||
Canadian National Railway |
664,000 |
15,888,044 |
47,177,200 |
2.9% |
132,650,593 |
290,533,000 |
17.9% |
||
Materials |
||||
Agricultural Chemicals |
||||
PotashCorp |
250,000 |
8,113,615 |
8,690,000 |
0.5% |
Base Metals |
||||
Freeport-McMoRan Copper & Gold |
90,000 |
1,767,834 |
2,416,500 |
0.2% |
Basic & Diversified Chemicals |
||||
Air Products & Chemicals |
250,000 |
16,422,819 |
35,957,500 |
2.2% |
Methanex |
300,000 |
5,849,587 |
15,498,000 |
1.0% |
PPG Industries |
200,000 |
13,211,578 |
43,764,000 |
2.7% |
Praxair |
220,000 |
16,103,769 |
28,243,600 |
1.7% |
51,587,753 |
123,463,100 |
7.6% |
||
Containers & Packaging Manufacturing |
||||
3M |
260,000 |
19,087,244 |
41,623,400 |
2.6% |
Illinois Tool Works |
500,000 |
23,226,178 |
47,465,000 |
2.9% |
42,313,422 |
89,088,400 |
5.5% |
||
Roofing Materials Manufacturing |
||||
Carlisle |
460,000 |
14,269,102 |
41,124,000 |
2.5% |
Specialty Chemicals |
||||
BASF ADR |
140,000 |
5,118,606 |
12,674,900 |
0.8% |
E.I. du Pont de Nemours |
500,000 |
23,186,120 |
35,700,000 |
2.2% |
RPM International |
180,000 |
3,642,493 |
8,586,000 |
0.5% |
31,947,219 |
56,960,900 |
3.5% |
||
Steel Producers |
||||
Tenaris ADS |
110,000 |
3,439,736 |
3,622,300 |
0.2% |
153,438,681 |
325,365,200 |
20.0% |
||
Technology |
||||
Information Services |
||||
Dun & Bradstreet |
39,773 |
3,054,344 |
5,049,182 |
0.3% |
Infrastructure Software |
||||
Microsoft |
1,000,000 |
24,161,315 |
47,810,000 |
2.9% |
Continued on next page. |
8 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Common Stocks — 97.7% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Technology (continued) |
||||
Semiconductor Devices |
||||
Intel |
1,000,000 |
$18,997,605 |
$37,250,000 |
2.3% |
Microchip Technology |
600,000 |
17,526,721 |
27,090,000 |
1.7% |
36,524,326 |
64,340,000 |
4.0% |
||
Semiconductor Manufacturing Services |
||||
Taiwan Semiconductor ADS |
1,500,000 |
16,043,323 |
35,205,000 |
2.2% |
79,783,308 |
152,404,182 |
9.4% |
||
Utilities |
||||
Utility Networks |
||||
National Fuel Gas |
170,000 |
7,593,521 |
11,775,900 |
0.7% |
7,593,521 |
11,775,900 |
0.7% |
||
Total investments |
$832,033,633 |
1,586,156,963 |
97.7% |
|
Other assets (net of liabilities) |
37,418,952 |
2.3% |
||
Total net assets |
$1,623,575,915 |
100.0% |
||
¹ Non-income producing ADS: American Depositary Share |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 9 |
Statement of Assets and Liabilities |
|
As of November 30, 2014 |
|
Assets |
|
Investments in securities, at value |
$1,586,156,963 |
Cash |
33,530,425 |
Dividends and income |
5,395,124 |
Receivable for Fund shares sold |
659,767 |
Insurance reserve premium |
2,528 |
Total assets |
1,625,744,807 |
Liabilities |
|
Payable to affiliates |
1,155,076 |
Payable for Fund shares redeemed |
696,797 |
Accrued expenses |
243,922 |
Accrued distribution fee |
73,097 |
Total liabilities |
2,168,892 |
Net Assets |
$1,623,575,915 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$845,746,748 |
Undistributed net investment income |
9,522,504 |
Accumulated net realized gain |
14,183,333 |
Unrealized net appreciation on investments |
754,123,330 |
Net assets applicable to Fund shares outstanding |
$1,623,575,915 |
Net asset value per Investor Share |
AMANX |
Net assets, at value |
$1,521,516,342 |
Shares outstanding |
31,892,614 |
Net asset value, offering and redemption price per share |
$47.71 |
Net asset value per Institutional Share |
AMINX |
Net assets, at value |
$102,059,573 |
Shares outstanding |
2,138,245 |
Net asset value, offering and redemption price per share |
$47.73 |
Statement of Operations |
|
Period ended November 30, 2014 |
|
Investment income |
|
Dividends |
$18,362,950 |
Miscellaneous income |
562 |
Gross investment income |
18,363,512 |
Expenses |
|
Investment adviser fees |
6,693,201 |
Distribution fees — Investor Shares |
1,880,526 |
Printing and postage |
120,522 |
Custodian fees |
37,535 |
Professional fees |
27,149 |
Chief Compliance Officer expenses |
22,437 |
Retirement plan custodial fees |
|
Investor Shares |
20,839 |
Institutional Shares |
496 |
Filing and registration fees |
20,495 |
Shareowner servicing fees |
|
Investor Shares |
19,424 |
Institutional Shares |
185 |
Trustee fees |
18,570 |
Other expenses |
16,876 |
Total gross expenses |
8,878,255 |
Less custodian fee credits |
(37,535) |
Net expenses |
8,840,720 |
Net investment income |
$9,522,792 |
Net realized gain from investments and foreign currency |
$10,839,173 |
Net increase in unrealized appreciation on investments |
60,580,402 |
Net gain on investments |
$71,419,575 |
Net increase in net assets resulting from operations |
$80,942,367 |
10 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Statements of Changes in Net Assets |
Period ended November 30, 2014 |
Year ended May 31, 2014 |
Increase (decrease) in net assets from operations |
||
From operations |
||
Net investment income |
$9,522,792 |
$26,529,675 |
Net realized gain on investments |
10,839,173 |
8,304,179 |
Net increase in unrealized appreciation |
60,580,402 |
229,384,503 |
Net increase in net assets |
80,942,367 |
264,218,357 |
Distributions to shareowners from |
||
Net investment income |
||
Investor Shares |
- |
(25,226,313) |
Institutional Shares |
- |
(1,397,744) |
Capital gains distribution |
||
Investor Shares |
- |
- |
Institutional Shares |
- |
- |
Total distributions |
- |
(26,624,057) |
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
92,912,990 |
268,543,466 |
Institutional Shares |
20,780,592 |
92,811,636 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
24,345,812 |
Institutional Shares |
- |
1,384,890 |
Cost of shares redeemed |
||
Investor Shares |
(171,758,397) |
(434,249,928) |
Institutional Shares |
(7,576,915) |
(15,615,718) |
Net decrease in net assets |
(65,641,730) |
(62,779,842) |
Total increase in net assets |
15,300,637 |
174,814,458 |
Net assets |
||
Beginning of period |
1,608,275,278 |
1,433,460,820 |
End of period |
1,623,575,915 |
1,608,275,278 |
Undistributed net investment income (loss) |
$9,522,504 |
$(288) |
Shares of the Fund sold and redeemed |
||
Investor Shares (AMANX) |
||
Number of shares sold |
2,039,273 |
6,435,553 |
Number of shares issued in reinvestment of dividends and distributions |
- |
545,910 |
Number of shares redeemed |
(3,770,517) |
(10,310,128) |
Net decrease in number of shares outstanding |
(1,731,244) |
(3,328,665) |
Institutional Shares (AMINX) |
||
Number of shares sold |
454,123 |
2,178,895 |
Number of shares issued in reinvestment of dividends and distributions |
- |
31,025 |
Number of shares redeemed |
(165,744) |
(360,054) |
Net increase in number of shares outstanding |
288,379 |
1,849,866 |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 11 |
Investor Shares (AMANX) |
Period ended |
Year ended May 31, |
||||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
2014 |
2013 |
2012 |
2011 |
2010 |
Net asset value at beginning of period |
$45.34 |
$38.79 |
$31.77 |
$33.91 |
$27.28 |
$24.27 |
Income from investment operations |
||||||
Net investment income |
0.27¹ |
0.72¹ |
0.58 |
0.49 |
0.44 |
0.35 |
Net gains (losses) on securities (both realized and unrealized) |
2.10 |
6.56 |
7.03 |
(1.98) |
6.63 |
3.01 |
Total from investment operations |
2.37 |
7.28 |
7.61 |
(1.49) |
7.07 |
3.36 |
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.73) |
(0.58) |
(0.49) |
(0.44) |
(0.35) |
Distributions (from capital gains) |
- |
- |
(0.01) |
(0.17) |
- |
- |
Total distributions |
- |
(0.73) |
(0.59) |
(0.66) |
(0.44) |
(0.35) |
Paid-in capital from early redemption fees |
n/a |
n/a |
0.00² |
0.01 |
0.00² |
0.00² |
Net asset value at end of period |
$47.71 |
$45.34 |
$38.79 |
$31.77 |
$33.91 |
$27.28 |
Total Return |
5.23% |
18.82% |
24.08% |
(4.36)% |
25.97% |
13.80% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$1,521,516 |
$1,524,471 |
$1,433,461 |
$1,296,998 |
$1,399,997 |
$1,067,854 |
Ratio of expenses to average net assets |
||||||
Before custodian fee credits |
1.13%³ |
1.15% |
1.19% |
1.20% |
1.21% |
1.26% |
After custodian fee credits |
1.12%³ |
1.14% |
1.18% |
1.20% |
1.20% |
1.25% |
Ratio of net investment income after custodian fee credits to average net assets |
1.18%³ |
1.71% |
1.58% |
1.52% |
1.47% |
1.33% |
Portfolio turnover rate |
0% |
1% |
1% |
3% |
3% |
5% |
Institutional Shares (AMINX) |
Period ended |
Period ended4 |
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
May 31, 2014 |
Net asset value at beginning of period |
$45.30 |
$40.66 |
Income from investment operations |
||
Net investment income |
0.33¹ |
0.69¹ |
Net gains on securities (both realized and unrealized) |
2.10 |
4.79 |
Total from investment operations |
2.43 |
5.48 |
Less distributions |
||
Dividends (from net investment income) |
- |
(0.84) |
Distributions (from capital gains) |
- |
- |
Total distributions |
- |
(0.84) |
Net asset value at end of period |
$47.73 |
$45.30 |
Total Return |
5.36% |
13.53%5 |
Ratios / supplemental data |
||
Net assets ($000), end of period |
$102,060 |
$83,805 |
Ratio of expenses to average net assets |
||
Before custodian fee credits |
0.87%³ |
0.90%³ |
After custodian fee credits |
0.87%³ |
0.90%³ |
Ratio of net investment income after custodian fee credits to average net assets |
1.44%³ |
2.32%³ |
Portfolio turnover rate |
0% |
1% |
¹ Calculated using average shares outstanding
² Amount is less than $0.01
³ Annualized
4 Operations commenced on 09/25/2013
5 Not annualized
12 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Average Annual Returns (as of November 30, 2014)
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMAGX) |
18.51% |
13.03% |
10.44% |
1.10% |
Institutional Shares (AMIGX)² |
18.82% |
n/a |
n/a |
0.87% |
S&P 500 Index |
16.86% |
15.96% |
8.06% |
n/a |
Growth of $10,000
Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in Investor Shares of the Fund on November 30, 2004, to an identical amount invested in the S&P 500 Index, a broad-based stock market index. The graph shows that an investment in Investor Shares of the Fund would have risen to $26,997 versus $21,714 in the Index. Please note that investors cannot invest directly in the index. |
|
Past performance does not guarantee future results. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus, which is dated August 15, 2014, and incorporates results for the fiscal year ended May 31, 2014. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. ² Institutional shares of the Amana Growth Fund began operations September 25, 2013. |
Fund Objective
The primary objective of the Growth Fund is long-term capital growth, consistent with Islamic principles.
Top Ten Holdings |
Portfolio Diversification |
|||||
% of Total Net Assets |
% of Total Net Assets |
|||||
Amgen |
4.2% |
Large Pharmaceuticals |
10.0% |
█ | ||
Adobe Systems |
4.2% |
Application Software |
8.9% |
█ | ||
Apple |
4.0% |
Communications Equipment |
7.9% |
█ | ||
Intuit |
3.4% |
Household Products Manufacturing |
6.8% |
█ | ||
Union Pacific |
3.1% |
Semiconductor Devices |
5.9% |
█ | ||
Akamai Technologies |
3.1% |
Rail Freight Transportation |
5.8% |
█ | ||
Church & Dwight |
2.9% |
Biotech |
5.3% |
█ | ||
Johnson & Johnson |
2.8% |
Measurement Instruments |
4.1% |
█ | ||
PepsiCo |
2.8% |
Telecom Carriers |
3.1% |
█ | ||
Qualcomm |
2.8% |
Beverages |
2.8% |
█ | ||
Specialty Apparel Stores |
2.8% |
█ | ||||
Post & Courier Services |
2.6% |
█ | ||||
Health Care Supply Chain |
2.6% |
█ | ||||
Home Product Stores |
2.4% |
█ | ||||
Other Specialty Retail — Discretionary |
2.3% |
█ | ||||
Internet Media |
2.2% |
█ | ||||
Semiconductor Capital Equipment |
2.0% |
█ | ||||
Other industries < 2.0% |
19.5% |
█ | ||||
Cash and equivalents |
3.0% |
█ |
Semi-Annual Report November 30, 2014 | 13 |
Common Stocks — 97.0% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Communications |
||||
Internet Media |
||||
Google A¹ |
85,000 |
$19,379,618 |
$46,671,800 |
2.2% |
Telecom Carriers |
||||
Akamai Technologies¹ |
1,000,000 |
21,444,890 |
64,610,000 |
3.1% |
40,824,508 |
111,281,800 |
5.3% |
||
Consumer Discretionary |
||||
Auto Parts |
||||
Gentex |
700,000 |
14,110,974 |
24,892,000 |
1.2% |
Automotive Wholesale |
||||
Genuine Parts |
100,000 |
4,521,739 |
10,278,000 |
0.5% |
General Merchant Wholesalers |
||||
Fastenal |
800,000 |
20,471,439 |
36,160,000 |
1.7% |
Home Product Stores |
||||
Lowe's |
790,000 |
18,730,150 |
50,425,700 |
2.4% |
Other Specialty Retail —Discretionary |
||||
PetSmart |
605,000 |
17,006,324 |
47,649,800 |
2.3% |
Specialty Apparel Stores |
||||
TJX Companies |
900,000 |
18,957,770 |
59,544,000 |
2.8% |
93,798,396 |
228,949,500 |
10.9% |
||
Consumer Staples |
||||
Beverages |
||||
PepsiCo |
600,000 |
36,524,584 |
60,060,000 |
2.8% |
Household Products Manufacturing |
||||
Church & Dwight |
800,000 |
31,059,800 |
61,368,000 |
2.9% |
Clorox |
333,000 |
19,170,128 |
33,839,460 |
1.6% |
Estee Lauder |
640,000 |
26,422,283 |
47,449,600 |
2.3% |
76,652,211 |
142,657,060 |
6.8% |
||
113,176,795 |
202,717,060 |
9.6% |
||
Health Care |
||||
Biotech |
||||
Amgen |
532,440 |
29,303,222 |
88,017,656 |
4.2% |
Celgene¹ |
200,000 |
7,547,036 |
22,738,000 |
1.1% |
36,850,258 |
110,755,656 |
5.3% |
||
Health Care Facilities |
||||
VCA Antech¹ |
620,000 |
17,290,742 |
29,344,600 |
1.4% |
Health Care Supply Chain |
||||
Express Scripts Holding¹ |
650,000 |
22,597,762 |
54,047,500 |
2.6% |
Continued on next page. |
14 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Common Stocks — 97.0% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Large Pharmaceuticals |
||||
Eli Lilly |
650,000 |
$23,224,550 |
$44,278,000 |
2.1% |
Johnson & Johnson |
546,000 |
33,179,299 |
59,104,500 |
2.8% |
Novartis ADS |
585,000 |
26,562,752 |
56,540,250 |
2.7% |
Novo Nordisk ADS |
1,100,000 |
10,428,308 |
50,006,000 |
2.4% |
93,394,909 |
209,928,750 |
10.0% |
||
Life Science Equipment |
||||
Keysight Technologies¹ |
450,000 |
6,495,281 |
15,840,000 |
0.7% |
Medical Equipment |
||||
Dentsply International |
375,000 |
11,987,990 |
20,617,500 |
1.0% |
Orthopedic Devices |
||||
Stryker |
300,000 |
15,657,168 |
27,873,000 |
1.3% |
204,274,110 |
468,407,006 |
22.3% |
||
Industrials |
||||
Building Sub-Contractors |
||||
EMCOR Group |
700,000 |
14,885,660 |
30,345,000 |
1.5% |
Flow Control Equipment |
||||
Crane |
258,000 |
8,511,899 |
15,229,740 |
0.7% |
Industrial Machinery Manufacturing |
||||
Regal-Beloit |
245,000 |
13,378,809 |
17,718,400 |
0.8% |
Measurement Instruments |
||||
Agilent Technologies |
900,000 |
16,302,137 |
38,466,000 |
1.8% |
Trimble Navigation¹ |
1,700,000 |
20,463,059 |
47,812,500 |
2.3% |
36,765,196 |
86,278,500 |
4.1% |
||
Metalworking Machinery Manufacturing |
||||
Lincoln Electric |
500,000 |
13,126,984 |
36,020,000 |
1.7% |
Post & Courier Services |
||||
United Parcel Service |
500,000 |
33,511,923 |
54,960,000 |
2.6% |
Rail Freight Transportation |
||||
Norfolk Southern |
500,000 |
26,797,903 |
55,820,000 |
2.7% |
Union Pacific |
552,654 |
30,102,567 |
64,533,408 |
3.1% |
56,900,470 |
120,353,408 |
5.8% |
||
177,080,941 |
360,905,048 |
17.2% |
||
Materials |
||||
Agricultural Chemicals |
||||
PotashCorp |
900,000 |
20,854,762 |
31,284,000 |
1.5% |
20,854,762 |
31,284,000 |
1.5% |
||
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 15 |
Common Stocks — 97.0% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Technology |
||||
Application Software |
||||
Adobe Systems¹ |
1,181,740 |
$36,045,155 |
$87,070,603 |
4.2% |
Intuit |
764,000 |
24,486,129 |
71,716,680 |
3.4% |
SAP ADS |
386,379 |
24,431,701 |
27,170,171 |
1.3% |
84,962,985 |
185,957,454 |
8.9% |
||
Communications Equipment |
||||
Apple |
700,000 |
2,876,770 |
83,251,000 |
4.0% |
Cisco Systems |
2,000,000 |
39,273,610 |
55,280,000 |
2.6% |
Harris |
390,000 |
11,806,300 |
27,951,300 |
1.3% |
53,956,680 |
166,482,300 |
7.9% |
||
Information Services |
||||
Gartner¹ |
250,000 |
6,468,834 |
21,370,000 |
1.0% |
Infrastructure Software |
||||
Oracle |
650,000 |
12,885,855 |
27,566,500 |
1.3% |
IT Services |
||||
Convergys |
511,033 |
5,901,758 |
10,655,038 |
0.5% |
Infosys ADS |
400,000 |
15,451,755 |
27,936,000 |
1.3% |
21,353,513 |
38,591,038 |
1.8% |
||
Semiconductor Capital Equipment |
||||
ASML |
385,000 |
14,279,290 |
40,686,800 |
2.0% |
Semiconductor Devices |
||||
Qualcomm |
800,000 |
30,482,851 |
58,320,000 |
2.8% |
SanDisk |
370,000 |
15,992,445 |
38,280,200 |
1.8% |
Xilinx |
600,000 |
14,947,540 |
27,264,000 |
1.3% |
61,422,836 |
123,864,200 |
5.9% |
||
Semiconductor Manufacturing Services |
||||
Taiwan Semiconductor ADS |
1,243,297 |
12,977,323 |
29,180,181 |
1.4% |
268,307,316 |
633,698,473 |
30.2% |
||
Total investments |
$918,316,828 |
2,037,242,887 |
97.0% |
|
Other assets (net of liabilities) |
63,730,456 |
3.0% |
||
Total net assets |
$2,100,973,343 |
100.0% |
||
¹ Non-income producing security ADS: American Depositary Share |
16 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Statement of Assets and Liabilities |
|
As of November 30, 2014 |
|
Assets |
|
Investments in securities, at value |
$2,037,242,887 |
Cash |
41,555,223 |
Receivable for security sales |
20,689,838 |
Dividends and income |
3,429,041 |
Receivable for Fund shares sold |
305,483 |
Total assets |
2,103,222,472 |
Liabilities |
|
Payable to affiliates |
1,405,845 |
Accrued expenses |
486,568 |
Payable for Fund shares redeemed |
261,552 |
Accrued distribution fee |
95,164 |
Total liabilities |
2,249,129 |
Net Assets |
$2,100,973,343 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$830,112,048 |
Undistributed net investment income |
8,475,232 |
Accumulated net realized gain |
143,460,004 |
Unrealized net appreciation on investments |
1,118,926,059 |
Net assets applicable to Fund shares outstanding |
$2,100,973,343 |
Net asset value per Investor Share |
AMAGX |
Net assets, at value |
$1,991,386,552 |
Shares outstanding |
54,092,452 |
Net asset value, offering and redemption price per share |
$36.81 |
Net asset value per Institutional Share |
AMIGX |
Net assets, at value |
$109,586,791 |
Shares outstanding |
2,971,949 |
Net asset value, offering and redemption price per share |
$36.87 |
Statement of Operations |
|
Period ended November 30, 2014 |
|
Investment income |
|
Dividends |
$14,791,118 |
Miscellaneous income |
1,072 |
Gross investment income |
14,792,190 |
Expenses |
|
Investment adviser fees |
8,006,492 |
Distribution fees — Investor Shares |
2,376,729 |
Printing and postage |
125,057 |
Custodian fees |
50,929 |
Professional fees |
32,493 |
Chief Compliance Officer expenses |
29,549 |
Shareowner servicing fees |
|
Investor Shares |
29,357 |
Institutional Shares |
185 |
Retirement plan custodial fees |
|
Investor Shares |
26,337 |
Institutional Shares |
375 |
Trustee fees |
20,764 |
Filing and registration fees |
20,486 |
Other expenses |
19,515 |
Total gross expenses |
10,738,268 |
Less custodian fee credits |
(50,929) |
Net expenses |
10,687,339 |
Net investment income |
$4,104,851 |
Net realized gain from investments and foreign currency |
$62,510,124 |
Net increase in unrealized appreciation on investments |
140,903,690 |
Net gain on investments |
$203,413,814 |
Net increase in net assets resulting from operations |
$207,518,665 |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 17 |
Statements of Changes in Net Assets |
Period ended November 30, 2014 |
Year ended May 31, 2014 |
Increase (decrease) in net assets from operations |
||
From operations |
||
Net investment income |
$4,104,851 |
$8,291,052 |
Net realized gain on investments |
62,510,124 |
137,821,923 |
Net increase in unrealized appreciation |
140,903,690 |
196,858,647 |
Net increase in net assets |
207,518,665 |
342,971,622 |
Distributions to shareowners from |
||
Net investment income |
||
Investor Shares |
- |
(11,635,832) |
Institutional Shares |
- |
(609,800) |
Capital gains distribution |
||
Investor Shares |
- |
(51,193,840) |
Institutional Shares |
- |
(2,115,063) |
Total distributions |
- |
(65,554,535) |
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
78,634,195 |
190,970,742 |
Institutional Shares |
16,559,321 |
104,194,038 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
61,346,142 |
Institutional Shares |
- |
2,724,863 |
Cost of shares redeemed |
||
Investor Shares |
(174,343,973) |
(819,692,814) |
Institutional Shares |
(11,930,198) |
(17,646,209) |
Net decrease in net assets |
(91,080,655) |
(478,103,238) |
Total increase (decrease) in net assets |
116,438,010 |
(200,686,151) |
Net assets |
||
Beginning of period |
1,984,535,333 |
2,185,221,484 |
End of period |
2,100,973,343 |
1,984,535,333 |
Undistributed net investment income |
$8,475,232 |
$4,370,381 |
Shares of the Fund sold and redeemed |
||
Investor Shares (AMAGX) |
||
Number of shares sold |
2,297,889 |
6,162,094 |
Number of shares issued in reinvestment of dividends and distributions |
- |
1,917,069 |
Number of shares redeemed |
(5,108,435) |
(26,443,072) |
Net decrease in number of shares outstanding |
(2,810,546) |
(18,363,909) |
Institutional Shares (AMIGX) |
||
Number of shares sold |
481,489 |
3,301,054 |
Number of shares issued in reinvestment of dividends and distributions |
- |
85,205 |
Number of shares redeemed |
(348,907) |
(546,892) |
Net increase in number of shares outstanding |
132,582 |
2,839,367 |
18 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Investor Shares (AMAGX) |
Period ended |
Year ended May 31, |
||||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
2014 |
2013 |
2012 |
2011 |
2010 |
Net asset value at beginning of period |
$33.22 |
$29.03 |
$25.32 |
$26.07 |
$21.19 |
$17.69 |
Income from investment operations |
||||||
Net investment income (loss) |
0.07¹ |
0.12¹ |
0.13 |
0.06 |
0.02 |
(0.01) |
Net gains (losses) on securities (both realized and unrealized) |
3.52 |
5.10 |
3.65 |
(0.80) |
4.88 |
3.51 |
Total from investment operations |
3.59 |
5.22 |
3.78 |
(0.74) |
4.90 |
3.50 |
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.19) |
(0.07) |
(0.01) |
(0.02) |
- |
Distributions (from capital gains) |
- |
(0.84) |
- |
- |
- |
- |
Total distributions |
- |
(1.03) |
(0.07) |
(0.01) |
(0.02) |
- |
Paid-in capital from early redemption fees |
n/a |
n/a |
0.00² |
0.00² |
0.00² |
0.00² |
Net asset value at end of period |
$36.81 |
$33.22 |
$29.03 |
$25.32 |
$26.07 |
$21.19 |
Total Return |
10.81% |
18.12% |
14.94% |
(2.84)% |
23.10% |
19.79% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$1,991,387 |
$1,890,187 |
$2,185,221 |
$2,195,225 |
$2,210,268 |
$1,596,487 |
Ratio of expenses to average net assets |
||||||
Before custodian fee credits |
1.09%³ |
1.10% |
1.11% |
1.13% |
1.14% |
1.21% |
After custodian fee credits |
1.08%³ |
1.09% |
1.11% |
1.13% |
1.14% |
1.20% |
Ratio of net investment income after custodian fee credits to average net assets |
0.40%³ |
0.39% |
0.44% |
0.23% |
0.07% |
(0.05)% |
Portfolio turnover rate |
0% |
0% |
1% |
12% |
5% |
5% |
Institutional Shares (AMIGX) |
Period ended |
Period ended4 |
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
May 31, 2014 |
Net asset value at beginning of period |
$33.23 |
$30.45 |
Income from investment operations |
||
Net investment income |
0.11¹ |
0.16¹ |
Net gains on securities (both realized and unrealized) |
3.53 |
3.70 |
Total from investment operations |
3.64 |
3.86 |
Less distributions |
||
Dividends (from net investment income) |
- |
(0.24) |
Distributions (from capital gains) |
- |
(0.84) |
Total distributions |
- |
(1.08) |
Net asset value at end of period |
$36.87 |
$33.23 |
Total Return |
10.95% |
12.82%5 |
Ratios / supplemental data |
||
Net assets ($000), end of period |
$109,587 |
$94,349 |
Ratio of expenses to average net assets |
||
Before custodian fee credits |
0.83%³ |
0.87%³ |
After custodian fee credits |
0.83%³ |
0.87%³ |
Ratio of net investment income after custodian fee credits to average net assets |
0.65%³ |
0.70%³ |
Portfolio turnover rate |
0% |
0% |
¹ Calculated using average shares outstanding
² Amount is less than $0.01
³ Annualized
4 Operations commenced on 09/25/2013
5 Not annualized
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 19 |
Average Annual Returns as of November 30, 2014
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMDWX) |
2.52% |
1.61% |
n/a |
1.59% |
Institutional Shares (AMIDX)² |
2.80% |
n/a |
n/a |
1.40% |
MSCI Emerging Markets Index |
1.06% |
3.55% |
9.45% |
n/a |
Growth of $10,000
Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in Investor Shares of the Fund on September 28, 2009, to an identical amount invested in the MSCI Emerging Markets Index, a broad-based international equity index. The graph shows that an investment in Investor Shares the Fund would have risen to $11,091 versus $12,429 in the Index. Please note that investors cannot invest directly in the index. |
|
The Amana Developing World Fund commenced operations September 28, 2009. Past performance does not guarantee future results. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus, which is dated August 15, 2014, and incorporates results for the fiscal year ended May 31, 2014. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. ² Institutional shares of the Amana Developing World Fund began operations September 25, 2013. |
Fund Objective
The primary objective of the Developing World Fund is long-term capital growth, consistent with Islamic principles.
Top Ten Holdings |
Portfolio Diversification |
|||||
% of Total Net Assets |
% of Total Net Assets |
|||||
Aspen Pharmacare |
3.4% |
Telecom Carriers |
11.8% |
█ | ||
MercadoLibre |
3.2% |
Food Manufacturing |
7.2% |
█ | ||
Western Digital |
3.1% |
Specialty Pharmaceuticals |
6.7% |
█ | ||
VF Corp |
2.9% |
Health Care Facilities |
5.4% |
█ | ||
Baidu ADS |
2.8% |
Utility Networks |
5.3% |
█ | ||
Mead Johnson Nutrition |
2.7% |
Household Products Manufacturing |
5.1% |
█ | ||
Aboitiz Power |
2.5% |
Generic Pharmaceuticals |
4.4% |
█ | ||
Clicks Group |
2.3% |
Power Generation |
3.7% |
█ | ||
Bangkok Dusit Medical Services |
2.3% |
E-Commerce Discretionary |
3.2% |
█ | ||
Telekomunikasi Indonesia ADS |
2.3% |
Computer Storage |
3.1% |
█ | ||
Apparel, Footwear, Accessory Design |
2.9% |
█ | ||||
Internet Media |
2.8% |
█ | ||||
Multi Asset Class Real Estate Ownership & Development |
2.4% |
█ | ||||
Educational Services |
2.3% |
█ | ||||
Pharmacies & Drug Stores |
2.3% |
█ | ||||
Infrastructure Construction |
2.0% |
█ | ||||
Other industries < 2.0% |
19.0% |
█ | ||||
Cash and equivalents |
10.4% |
█ |
20 |
Semi-Annual Report November 30, 2014 |
Common Stocks — 89.5% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Communications |
|||||
Internet Media |
|||||
Baidu ADS² |
3,500 |
$241,481 |
$857,885 |
China³ |
2.8% |
Telecom Carriers |
|||||
Advanced Info Service |
40,000 |
315,979 |
289,916 |
Thailand |
1.0% |
Axiata Group |
295,000 |
610,256 |
615,685 |
Malaysia |
2.0% |
Millicom International |
2,500 |
220,520 |
208,197 |
Luxembourg |
0.7% |
MTN Group |
28,000 |
531,479 |
552,739 |
South Africa |
1.8% |
Telefonica Brasil ADS |
15,000 |
371,442 |
308,400 |
Brazil |
1.0% |
Telekomunikasi Indonesia ADS |
15,000 |
540,800 |
691,500 |
Indonesia |
2.3% |
Telenor |
28,000 |
583,414 |
592,101 |
Malaysia³ |
2.0% |
Turkcell Iletisim Hizmetleri ADS² |
20,000 |
296,254 |
317,400 |
Turkey |
1.0% |
3,470,144 |
3,575,938 |
11.8% |
|||
3,711,625 |
4,433,823 |
14.6% |
|||
Consumer Discretionary |
|||||
Apparel, Footwear, Accessory Design |
|||||
VF |
12,000 |
310,438 |
902,040 |
United States |
2.9% |
Automobile OEM |
|||||
Ford Otomotiv Sanayi |
40,000 |
378,513 |
538,776 |
Turkey |
1.8% |
Department Stores |
|||||
Robinson Department Store |
175,000 |
340,943 |
261,058 |
Thailand |
0.9% |
E-Commerce Discretionary |
|||||
MercadoLibre |
7,000 |
500,586 |
986,580 |
Brazil³ |
3.2% |
Educational Services |
|||||
Kroton Educacional |
100,000 |
651,532 |
691,196 |
Brazil |
2.3% |
2,182,012 |
3,379,650 |
11.1% |
|||
Consumer Staples |
|||||
Food Manufacturing |
|||||
Danone ADS |
37,000 |
510,811 |
519,110 |
France |
1.7% |
Indofood CBP Sukses Makmur |
520,000 |
493,960 |
479,362 |
Indonesia |
1.6% |
IOI |
300,000 |
329,545 |
427,451 |
Malaysia |
1.4% |
M. Dias Branco |
14,400 |
427,617 |
550,812 |
Brazil |
1.8% |
Tiger Brands |
6,000 |
199,013 |
209,897 |
South Africa |
0.7% |
1,960,946 |
2,186,632 |
7.2% |
|||
Household Products Manufacturing |
|||||
Colgate-Palmolive |
8,000 |
348,011 |
556,720 |
United States |
1.8% |
Kimberly-Clark de Mexico |
160,000 |
488,255 |
366,148 |
Mexico |
1.2% |
Unilever ADS |
14,700 |
592,154 |
619,458 |
United Kingdom |
2.1% |
1,428,420 |
1,542,326 |
5.1% |
|||
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 21 |
Common Stocks — 89.5% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Consumer Staples (continued) |
|||||
Pharmacies & Drug Stores |
|||||
Clicks Group |
98,000 |
$596,646 |
$707,206 |
South Africa |
2.3% |
3,986,012 |
4,436,164 |
14.6% |
|||
Energy |
|||||
Exploration & Production |
|||||
CNOOC ADS |
3,300 |
608,321 |
474,969 |
China |
1.6% |
Integrated Oils |
|||||
China Petroleum & Chemical ADS |
1,040 |
69,690 |
84,084 |
China |
0.2% |
Sasol ADS |
10,000 |
494,222 |
420,500 |
South Africa |
1.4% |
563,912 |
504,584 |
1.6% |
|||
1,172,233 |
979,553 |
3.2% |
|||
Financials |
|||||
Islamic Banking |
|||||
BIMB Holdings |
280,000 |
365,209 |
352,860 |
Malaysia |
1.2% |
Multi Asset Class Real Estate Ownership & Development |
|||||
IOI Properties Group² |
150,000 |
205,190 |
109,082 |
Malaysia |
0.4% |
SM Prime Holdings |
1,610,000 |
619,395 |
613,486 |
Philippines |
2.0% |
824,585 |
722,568 |
2.4% |
|||
1,189,794 |
1,075,428 |
3.6% |
|||
Health Care |
|||||
Cardiovascular Devices |
|||||
Mindray Medical International ADS |
13,000 |
440,442 |
390,910 |
China³ |
1.3% |
Generic Pharmaceuticals |
|||||
Aspen Pharmacare |
28,000 |
453,298 |
1,013,228 |
South Africa |
3.4% |
Richter Gedeon |
20,000 |
367,156 |
311,355 |
Hungary |
1.0% |
820,454 |
1,324,583 |
4.4% |
|||
Health Care Facilities |
|||||
Bangkok Dusit Medical Services |
1,250,000 |
368,757 |
704,005 |
Thailand |
2.3% |
IHH Healthcare² |
300,000 |
391,875 |
436,386 |
Malaysia |
1.4% |
KPJ Healthcare |
444,666 |
402,509 |
499,474 |
Malaysia |
1.7% |
1,163,141 |
1,639,865 |
5.4% |
|||
Health Care Services |
|||||
WuXi PharmaTech Cayman ADR² |
8,300 |
302,192 |
284,773 |
China |
0.9% |
Specialty Pharmaceuticals |
|||||
Genomma Lab Internacional² |
273,500 |
615,641 |
583,818 |
Mexico |
1.9% |
Kalbe Farma |
4,500,000 |
400,361 |
645,687 |
Indonesia |
2.1% |
Mead Johnson Nutrition |
7,900 |
532,326 |
820,336 |
United States |
2.7% |
1,548,328 |
2,049,841 |
6.7% |
|||
4,274,557 |
5,689,972 |
18.7% |
|||
Continued on next page. |
22 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Common Stocks — 89.5% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Industrials |
|||||
Agricultural Machinery |
|||||
Turk Traktor ve Ziraat Makineleri |
9,000 |
$292,888 |
$282,589 |
Turkey |
0.9% |
Infrastructure Construction |
|||||
CCR |
32,000 |
192,106 |
220,064 |
Brazil |
0.7% |
Jasa Marga |
700,000 |
432,059 |
387,976 |
Indonesia |
1.3% |
624,165 |
608,040 |
2.0% |
|||
917,053 |
890,629 |
2.9% |
|||
Materials |
|||||
Agricultural Chemicals |
|||||
Quimica y Minera de Chile ADS |
17,000 |
689,167 |
428,400 |
Chile |
1.4% |
Base Metals |
|||||
Freeport-McMoRan Copper & Gold |
15,000 |
584,100 |
402,750 |
Indonesia³ |
1.3% |
Cement & Aggregates |
|||||
PT Semen |
440,000 |
530,506 |
577,974 |
Indonesia |
1.9% |
Precious Metal Mining |
|||||
Alamos Gold |
32,500 |
500,025 |
219,983 |
Mexico³ |
0.7% |
Impala Platinum ADS |
16,000 |
343,235 |
114,720 |
South Africa |
0.4% |
843,260 |
334,703 |
1.1% |
|||
Raw Material Suppliers |
|||||
Vale ADS |
12,500 |
341,208 |
112,625 |
Brazil |
0.4% |
Steel Producers |
|||||
Tenaris ADS |
7,000 |
282,964 |
230,510 |
Argentina³ |
0.8% |
3,271,205 |
2,086,962 |
6.9% |
|||
Technology |
|||||
Computer Hardware |
|||||
Lenovo Group |
400,000 |
577,082 |
560,528 |
China |
1.8% |
Computer Storage |
|||||
Western Digital |
9,000 |
363,962 |
929,430 |
Thailand³ |
3.1% |
941,044 |
1,489,958 |
4.9% |
|||
Utilities |
|||||
Power Generation |
|||||
Aboitiz Power |
815,000 |
711,370 |
765,209 |
Philippines |
2.5% |
PGE |
60,000 |
300,164 |
345,867 |
Poland |
1.2% |
1,011,534 |
1,111,076 |
3.7% |
|||
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 23 |
Common Stocks — 89.5% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Utilities (continued) |
|||||
Utility Networks |
|||||
Enersis ADS |
10,000 |
$215,250 |
$167,800 |
Chile |
0.6% |
Hong Kong & China Gas ADS |
220,000 |
495,666 |
508,200 |
China |
1.7% |
Manila Electric |
80,000 |
517,224 |
465,440 |
Philippines |
1.5% |
Petronas Gas |
70,000 |
449,259 |
469,533 |
Malaysia |
1.5% |
1,677,399 |
1,610,973 |
5.3% |
|||
2,688,933 |
2,722,049 |
9.0% |
|||
Total Common Stocks |
24,334,468 |
27,184,188 |
89.5% |
Derivatives — 0.1% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Financials |
|||||
Islamic Banking |
|||||
BIMB Holdings Warrants² |
80,000 |
- |
11,826 |
Malaysia |
0.1% |
- |
11,826 |
0.1% |
|||
Health Care |
|||||
Health Care Facilities |
|||||
KPJ Healthcare Warrants² |
29,332 |
- |
4,769 |
Malaysia |
0.0%4 |
- |
4,769 |
0.0%4 |
|||
Total Derivatives |
- |
16,595 |
0.1% |
||
Total investments |
$24,334,468 |
27,200,783 |
89.6% |
||
Other assets (net of liabilities) |
3,165,072 |
10.4% |
|||
Total net assets |
$30,365,855 |
100.0% |
¹ Country of domicile unless otherwise indicated
² Non-Income producing security
³ Denotes a country or region of primary exposure
4 Amount is less than 0.05%
ADS: American Depositary Share
ADR: American Depositary Receipt
24 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund
Statement of Assets and Liabilities |
|
As of November 30, 2014 |
|
Assets |
|
Investments in securities, at value |
$27,200,783 |
Cash |
3,654,295 |
Dividends and income |
22,301 |
Receivable for Fund shares sold |
6,494 |
Total assets |
30,883,873 |
Liabilities |
|
Payable for security purchases |
463,761 |
Payable to affiliates |
31,474 |
Accrued expenses |
18,356 |
Payable for Fund shares redeemed |
3,336 |
Accrued distribution fee |
1,091 |
Total liabilities |
518,018 |
Net Assets |
$30,365,855 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares |
$28,871,253 |
Undistributed net investment income |
37,898 |
Accumulated net realized loss |
(1,411,485) |
Unrealized net appreciation on investments |
2,868,189 |
Net assets applicable to Fund shares outstanding |
$30,365,855 |
Net asset value per Investor Share |
AMDWX |
Net assets, at value |
$22,595,290 |
Shares outstanding |
2,047,285 |
Net asset value, offering and redemption price per share |
$11.04 |
Net asset value per Institutional Share |
AMIDX |
Net assets, at value |
$7,770,565 |
Shares outstanding |
701,303 |
Net asset value, offering and redemption price per share |
$11.08 |
Statement of Operations |
|
Period ended November 30, 2014 |
|
Investment income |
|
Dividends |
$234,022 |
Miscellaneous income |
118 |
Gross investment income |
234,140 |
Expenses |
|
Investment adviser fees |
142,496 |
Distribution fees — Investor Shares |
28,322 |
Filing and registration fees |
19,408 |
Printing and postage |
10,357 |
Custodian fees |
6,511 |
Retirement plan custodial fees |
|
Investor Shares |
4,032 |
Institutional Shares |
18 |
Professional fees |
3,247 |
Shareowner servicing fees |
|
Investor Shares |
2,371 |
Institutional Shares |
25 |
Chief Compliance Officer expenses |
429 |
Trustee fees |
384 |
Other expenses |
303 |
Total gross expenses |
217,903 |
Less custodian fee credits |
(6,511) |
Net expenses |
211,392 |
Net investment income |
$22,748 |
Net realized gain from investments and foreign currency |
$85,858 |
Net increase in unrealized appreciation on investments and foreign currency |
245,937 |
Net gain on investments |
$331,795 |
Net increase in net assets resulting from operations |
$354,543 |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 25 |
Amana Developing World Fund
Statements of Changes in Net Assets |
Period ended November 30, 2014 |
Year ended May 31, 2014 |
Increase (decrease) in net assets from operations |
||
From operations |
||
Net investment income |
$22,748 |
$37,788 |
Net realized gain (loss) on investments |
85,858 |
(823,044) |
Net increase in unrealized appreciation |
245,937 |
821,549 |
Net increase in net assets |
354,543 |
36,293 |
Distributions to shareowners from |
||
Net investment income |
||
Investor Shares |
- |
(83,707) |
Institutional Shares |
- |
(19,987) |
Total distributions |
- |
(103,694) |
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
4,121,049 |
9,662,307 |
Institutional Shares |
1,533,296 |
7,435,765 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
83,422 |
Institutional Shares |
- |
19,987 |
Cost of shares redeemed |
||
Investor Shares |
(2,571,229) |
(13,758,910) |
Institutional Shares |
(1,252,523) |
(102,587) |
Net increase in net assets |
1,830,593 |
3,339,984 |
Total increase in net assets |
2,185,136 |
3,272,583 |
Net assets |
||
Beginning of period |
28,180,719 |
24,908,136 |
End of period |
30,365,855 |
28,180,719 |
Undistributed net investment income |
$37,898 |
$15,151 |
Shares of the Fund sold and redeemed |
||
Investor Shares (AMDWX) |
||
Number of shares sold |
369,697 |
909,412 |
Number of shares issued in reinvestment of dividends and distributions |
- |
7,915 |
Number of shares redeemed |
(231,917) |
(1,284,802) |
Net increase (decrease) in number of shares outstanding |
137,780 |
(367,475) |
Institutional Shares (AMIDX) |
||
Number of shares sold |
136,597 |
687,152 |
Number of shares issued in reinvestment of dividends and distributions |
- |
1,894 |
Number of shares redeemed |
(114,233) |
(10,107) |
Net increase in number of shares outstanding |
22,364 |
678,939 |
26 |
Semi-Annual Report November 30, 2014 |
The accompanying notes are an integral part of these financial statements. |
Investor Shares (AMDWX) |
Period ended |
Year ended May 31, |
Period ended¹ |
|||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
2014 |
2013 |
2012 |
2011 |
May 31, 2010 |
Net asset value at beginning of period |
$10.88 |
$10.94 |
$9.90 |
$10.88 |
$10.16 |
$10.00 |
Income from investment operations |
||||||
Net investment income (loss) |
0.00³ |
0.01² |
0.06 |
(0.01) |
(0.06) |
(0.05) |
Net gains (losses) on securities (both realized and unrealized) |
0.16 |
(0.03) |
0.98 |
(0.96) |
0.78 |
0.21 |
Total from investment operations |
0.16 |
(0.02) |
1.04 |
(0.97) |
0.72 |
0.16 |
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.04) |
- |
(0.01) |
- |
- |
Total distributions |
- |
(0.04) |
- |
(0.01) |
- |
- |
Paid-in capital from early redemption fees |
n/a |
n/a |
0.00³ |
0.00³ |
0.00³ |
0.00³ |
Net asset value at end of period |
$11.04 |
$10.88 |
$10.94 |
$9.90 |
$10.88 |
$10.16 |
Total Return |
1.47% |
(0.17)% |
10.51% |
(8.94)% |
7.09% |
1.60%4 |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$22,595 |
$20,775 |
$24,908 |
$18,073 |
$15,839 |
$9,096 |
Ratio of expenses to average net assets |
||||||
Before custodian fee credits |
1.53%5 |
1.59% |
1.54% |
1.63% |
1.61% |
1.59%5 |
After custodian fee credits |
1.48%5 |
1.54% |
1.51% |
1.61% |
1.60% |
1.58%5 |
Ratio of net investment income (loss) after custodian fee credits to average net assets |
0.07%5 |
0.06% |
0.67% |
(0.10)% |
(0.63)% |
(1.14)%5 |
Portfolio turnover rate |
6% |
11% |
4% |
12% |
2% |
5%4 |
Institutional Shares (AMIDX) |
Period ended |
Period ended6 |
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2014 |
May 31, 2014 |
Net asset value at beginning of period |
$10.91 |
$10.87 |
Income from investment operations |
||
Net investment income |
0.02 |
0.05² |
Net gains on securities (both realized and unrealized) |
0.15 |
0.03 |
Total from investment operations |
0.17 |
0.08 |
Less distributions |
||
Dividends (from net investment income) |
- |
(0.04) |
Total distributions |
- |
(0.04) |
Net asset value at end of period |
$11.08 |
$10.91 |
Total Return |
1.56% |
0.75%4 |
Ratios / supplemental data |
||
Net assets ($000), end of period |
$7,771 |
$7,406 |
Ratio of expenses to average net assets |
||
Before custodian fee credits |
1.22%5 |
1.40%5 |
After custodian fee credits |
1.18%5 |
1.35%5 |
Ratio of net investment income after custodian fee credits to average net assets |
0.40%5 |
0.64%5 |
Portfolio turnover rate |
6% |
11% |
¹ Operations commenced on 9/28/2009
² Calculated using average shares outstanding
³ Amount is less than $0.01
4 Not annualized
5 Annualized
6 Operations commenced on 09/25/2013
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report November 30, 2014 | 27 |
Note 1 — Organization
Amana Mutual Funds Trust (the "Trust") was organized as a Delaware Statutory Trust on March 11, 2013, and is the successor to Amana Mutual Funds Trust, an Indiana Business Trust ("Prior Trust") organized on July 26, 1984, pursuant to a reorganization on July 19, 2013. Each Fund is a series of the Trust and the successor to the corresponding series of the Prior Trust. The Trust is registered as a no-load, open-end, diversified series management investment company under the Investment Company Act of 1940, as amended. The Trust restricts its investments to those acceptable to Muslims by investing in accordance with Islamic principles. Three portfolio series have been created. The Income Fund was first authorized to sell shares of beneficial interest to the public on June 23, 1986. The Growth Fund began operations on February 3, 1994. The Developing World Fund began operations on September 28, 2009. Institutional shares of each Fund were first offered September 25, 2013.
Each Fund is an investment company and accordingly follows the investment accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services — Investment Companies."
Each class of shares of a Fund represents an interest in the same portfolio of investments of the Fund and has in all respects the same rights and obligations as each other class of the Fund, except that each class bears its own class expenses, and each class has exclusive voting rights. Each class of shares may be subject to different investment minimums and other conditions of eligibility as may be described in the prospectus for the particular class of shares, as from time to time in effect.
Income, realized, and unrealized capital gains and losses, and expenses to be paid by a Fund and not allocated to a particular class as provided below, shall be allocated to each class on the basis of relative net assets. Expenses allocable to a specific class are expenses specifically incurred by or for such class including the following:
Net investment income dividends and capital gain distributions paid by the Fund on each class of its shares will be calculated in the same manner on the same day and at the same time.
Note 2 — Unaudited Information
The information in this interim report has not been subject to independent audit.
Note 3 — Significant Accounting Policies
The following is a summary of the significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Funds in preparation of their financial statements.
Security valuation:
Investments in securities traded on a national securities exchange and over-the-counter securities for which sale prices are available are valued at that price. Securities for which there are no sales are valued at latest bid price.
Foreign markets may close before the time as of which the Funds' share prices are determined. Because of this, events occurring after the close and before the determination of the Funds' share prices may have a material effect on the values of some or all of the Funds' foreign securities. To account for this, the Funds may use outside pricing services for valuation of their non-US securities.
In cases in which there is not a readily available market price, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.
Security transactions are recorded on trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.
Foreign currency:
Investment securities and other assets and liabilities denominated in foreign currencies are translated into US dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into US dollar amounts on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
Share valuation:
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 and distributions will vary among a Fund's share classes. The Funds' shares are not priced or traded on days the New York Stock Exchange is closed. The NAV is both the offering and redemption price per share.
Fair value measurements:
Accounting Standards Codification (ASC) 820 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds' investments and are summarized below.
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 — Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
28 |
Semi-Annual Report November 30, 2014 |
Share Valuation Inputs as of November 30, 2014 |
||||
Funds |
Level 1 |
Level 2 |
Level 3 |
Total |
Income Fund |
||||
Common Stocks |
$1,586,156,963¹ |
$- |
$- |
$1,586,156,963 |
Total Assets |
$1,586,156,963 |
$- |
$- |
$1,586,156,963 |
Growth Fund |
||||
Common Stocks |
$2,037,242,887¹ |
$- |
$- |
$2,037,242,887 |
Total Assets |
$2,037,242,887 |
$- |
$- |
$2,037,242,887 |
Developing World Fund |
||||
Common Stocks |
||||
Communications |
$2,175,185 |
$2,258,638 |
$- |
$4,433,823 |
Consumer Discretionary |
1,888,620 |
1,491,030 |
- |
3,379,650 |
Consumer Staples |
1,695,288 |
2,740,876 |
- |
4,436,164 |
Energy |
979,553 |
- |
- |
979,553 |
Financials |
- |
1,075,428 |
- |
1,075,428 |
Health Care |
1,496,019 |
4,193,953 |
- |
5,689,972 |
Industrials |
- |
890,629 |
- |
890,629 |
Materials |
1,289,005 |
797,957 |
- |
2,086,962 |
Technology |
929,430 |
560,528 |
- |
1,489,958 |
Utilities |
676,000 |
2,046,049 |
- |
2,722,049 |
Total Common Stocks |
11,129,100 |
16,055,088 |
- |
27,184,188 |
Derivatives |
||||
Financials |
- |
11,826 |
- |
11,826 |
Health Care |
- |
4,769 |
- |
4,769 |
Total Derivatives |
- |
16,595 |
- |
16,595 |
Total Assets |
$11,129,100 |
$16,071,683 |
$- |
$27,200,783 |
During the period ended November 30, 2014, no Fund had transfers between Level 1 and Level 2.
¹ See the Schedule of Investments for additional details.
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The table above is a summary of the inputs used as of November 30, 2014, in valuing the Funds' investments carried at fair value.
Derivative instruments and hedging activities:
The Funds have adopted the financial accounting reporting rules required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification. The Funds are required to include enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position.
During the fiscal period ended November 30, 2014, the Funds held positions in rights offerings as a result of actions taken by the board of directors of the underlying companies. Rights offerings are issued to existing shareowners of companies and allow shareowners to purchase additional company shares, generally at a discount to the current market price, prior to a set expiration date. As a result of exercising certain rights offerings, the Funds received warrants. Holders of warrants have the right to purchase additional securities directly from the issuer at a set exercise price, prior to a stated expiration date.
The effects of these derivative instruments on the Fund's financial position and financial performance as reflected in the Statement of
Semi-Annual Report November 30, 2014 | 29 |
Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of November 30, 2014, by risk category are as follows:
Developing World Fund |
||
Statement of Asset and Liabilities Location |
Derivatives not designated as hedging instruments |
Asset Derivatives |
Investments in securities, at value |
Rights offerings |
$- |
Warrants |
16,595 |
|
Total |
$16,595 |
Statement of Operations Effects
Developing World Fund |
||
Derivatives not designated |
Realized Gains |
Unrealized Gains |
Rights offerings |
$- |
$- |
Warrants |
- |
16,595 |
Total |
$- |
$16,595 |
Investment concentration:
The fundamental policies of the Funds prohibit earning interest, in accordance with Islamic principles. Consequently, cash is held in non-interest-bearing deposits with the Funds' custodian or other banks. "Other assets (net of liabilities)" in the Funds' Schedules of Investments primarily represents cash on deposit with the custodian. Cash on deposit will vary widely over time. Accounting Standards Codification ("ASC") 825, "Financial Instruments," identifies these items as a concentration of credit risk, requiring disclosure regardless of the degree of risk. The risk is managed by careful financial analysis and review of the custodian's operations, resources, and protections available to the Trust. This process includes evaluation of other financial institutions providing investment company custody services.
Federal income taxes:
The Funds intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareowners sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Funds' tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2011 — 2013) or expected to be taken in the Funds' 2014 tax returns. The Funds identify their major tax jurisdiction as US federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Reclassification of capital accounts:
Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV.
Income Fund |
Growth Fund |
Developing World Fund |
|
Undistributed net income |
$(823) |
$175 |
$(8,895) |
Accumulated gains (losses) |
1,093 |
(175) |
8,895 |
Paid-in capital |
$(270) |
$- |
$- |
Distributions to shareowners:
Dividends to shareowners from net investment income, if any, are paid in May and December. As a result of their investment strategies, the Growth and Developing World Funds do not expect to pay income dividends. Distributions of capital gains, if any, are made at least annually, and as required to comply with federal excise tax requirements. Distributions to shareowners are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take distributions if they total $10 or more in cash.
Use of estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates.
Other:
The Funds record security transactions based on a trade date. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis.
Expenses incurred by the Trust on behalf of the Funds (e.g., professional fees) are allocated to the Funds on the basis of relative daily average net assets. Net investment losses may not be utilized to offset net investment income in future periods for tax purposes. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and rates.
Note 4 — Transactions with Affiliated Persons
Under a contract approved annually by Amana's independent trustees, Saturna Capital provides investment advisory services and certain other administrative and distribution services and facilities required to conduct Trust business. For such services, each Fund pays an advisory fee of 0.95% on the first $500 million of a fund's average daily net assets, 0.85% on the next $500 million, 0.75% on the next $500 million, and 0.65% on assets over $1.5 billion. For the fiscal period ended November 30, 2014, the Funds paid the following advisory fees to Saturna Capital:
Advisory Fees |
|
Income Fund |
$6,693,201 |
Growth Fund |
8,006,492 |
Developing World Fund |
$142,496 |
Certain officers and one trustee of Amana are also officers and directors of the investment adviser.
30 |
Semi-Annual Report November 30, 2014 |
Saturna Capital also acts as transfer agent for the Trust for which each class of a Fund pays $0.25 per account per month. For the fiscal period ended November 30, 2014, the Funds paid the following transfer agent ("shareowner servicing") fees to Saturna Capital:
Shareowner Servicing Fees |
|
Income Fund Investor Shares (AMANX) |
$19,424 |
Income Fund Institutional Shares (AMINX) |
185 |
Growth Fund Investor Shares (AMAGX) |
29,357 |
Growth Fund Institutional Shares (AMIGX) |
185 |
Developing World Fund Investor Shares (AMDWX) |
2,371 |
Developing World Fund Institutional Shares (AMIDX) |
$25 |
Saturna Brokerage Services, Inc. ("SBS"), a subsidiary of Saturna Capital, is registered as a broker-dealer and acts as distributor. The Funds have adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act applicable to the Investor Shares of each Fund. The plan provides that the Funds will pay a fee to SBS at an annual rate of up to 0.25% of the average net assets applicable to Investor Shares of each Fund. The fee is paid to SBS as reimbursement for expenses incurred for distribution-related activity. For the fiscal period ended November 30, 2014, the Funds paid the following distribution fees to SBS:
Distribution (12b-1) Fees |
|
Income Fund Investor Shares (AMANX) |
$1,880,526 |
Income Fund Institutional Shares (AMINX) |
n/a |
Growth Fund Investor Shares (AMAGX) |
2,376,729 |
Growth Fund Institutional Shares (AMIGX) |
n/a |
Developing World Fund Investor Shares (AMDWX) |
$28,322 |
Developing World Fund Institutional Shares (AMIDX) |
n/a |
For the fiscal period ended November 30, 2014, Saturna Capital spent $1,792,400 from additional resources of its own, and not part of the 12b-1 expense of the Funds, to compensate broker-dealers or other financial intermediaries, or their affiliates, in connection with the sale, distribution, retention, and/or servicing of Fund shares. To the extent that these resources are derived from advisory fees paid by the Funds, these payments could be considered "revenue sharing." Any such payments will not change the net asset value or the price of a Fund's shares.
SBS is used to effect portfolio transactions for the Trust. SBS currently executes portfolio transactions without commission. Transactions effected through other brokers are subject to commissions payable to that broker.
Saturna Trust Company ("STC"), a subsidiary of Saturna Capital, acts as retirement plan custodian for Fund shareowners. Each class of shares of a Fund pays an annual fee of $10 per account for retirement plan services to Saturna Trust Company. For the fiscal period ended November 30, 2014, the Funds incurred the following retirement plan custodial fees to STC:
Retirement plan custodial fees |
|
Income Fund Investor Shares (AMANX) |
$20,839 |
Income Fund Institutional Shares (AMINX) |
496 |
Growth Fund Investor Shares (AMAGX) |
26,337 |
Growth Fund Institutional Shares (AMIGX) |
375 |
Developing World Fund Investor Shares (AMDWX) |
4,032 |
Developing World Fund Institutional Shares (AMIDX) |
$18 |
Mr. Nicholas Kaiser serves as a trustee and president of the Trust. He is also a director and the chairman of Saturna Capital and Saturna Trust Company. He is not compensated by the Trust. For the fiscal period ended November 30, 2014, the Trust incurred trustee compensation expenses of $28,000, which is included in $39,718 of total expenses for the independent Trustees.
Income Fund |
Growth Fund |
Developing World Fund |
|
Trustee Fees |
$13,950 |
$13,761 |
$289 |
Other Trustee expenses |
$4,620 |
$7,003 |
$95 |
The officers of the Trust are paid by Saturna Capital, and not the Trust, except for the Chief Compliance Officer, who is partially compensated by the Trust. For the fiscal period ended November 30, 2014, the Trust incurred the following related to the expense of its Chief Compliance Officer:
Income Fund |
Growth Fund |
Developing World Fund |
|
Chief Compliance Officer |
$22,437 |
$29,549 |
$429 |
On November 30, 2014, the trustees, officers, and their affiliates (including Saturna Capital Corporation) as a group, owned the following percentages of outstanding shares:
Trustees', officers', and affiliates' ownership |
|
Income Fund Investor Shares (AMANX) |
0.04% |
Income Fund Institutional Shares (AMINX) |
4.79% |
Growth Fund Investor Shares (AMAGX) |
0.04% |
Growth Fund Institutional Shares (AMIGX) |
4.97% |
Developing World Fund Investor Shares (AMDWX) |
1.35% |
Developing World Fund Institutional Shares (AMIDX) |
35.22% |
Note 5 — Distributions to Shareowners
The tax characteristics of distributions paid for the fiscal period ended November 30, 2014, and the year ended May 31, 2014 were as follows:
Income Fund |
Period ended Nov. 30, 2014 |
May 31, 2014 |
Ordinary income |
$- |
$26,624,057 |
Growth Fund |
Period ended Nov. 30, 2014 |
May 31, 2014 |
Ordinary income¹ |
$- |
$13,498,551 |
Long-term capital gain² |
$- |
$52,055,982 |
Developing World Fund |
Period ended Nov. 30, 2014 |
May 31, 2014 |
Ordinary income¹ |
$- |
$103,694 |
¹ By policy, the Growth and Developing World Funds seek to avoid paying income dividends.
² Long-term capital gain dividend designated pursuant to Section 852(b)(3) of the Internal Revenue Code.
Semi-Annual Report November 30, 2014 | 31 |
Note 6 — Federal Income Taxes
The cost basis of investments for federal income tax purposes at November 30, 2014, were as follows:
Income Fund |
Growth Fund |
Developing World Fund |
|
Cost of investments |
$832,033,633 |
$918,316,828 |
$24,334,468 |
Gross unrealized appreciation |
$758,584,504 |
$1,120,990,344 |
$5,244,340 |
Gross unrealized depreciation |
$(4,461,174) |
$(2,064,285) |
$(2,378,025) |
Net unrealized appreciation |
$754,123,330 |
$1,118,926,059 |
$2,866,315 |
As of May 31, 2014, the components of distributable earnings on a tax basis were as follows:
Income Fund |
|
Accumulated capital gains |
$3,344,160 |
Tax accumulated earnings |
3,344,160 |
Other accumulated losses |
(288) |
Unrealized appreciation |
693,542,928 |
Total accumulated earnings |
$696,886,800 |
Growth Fund |
|
Undistributed ordinary income |
$3,117,461 |
Accumulated capital gains |
82,202,800 |
Tax accumulated earnings |
85,320,261 |
Unrealized appreciation |
978,022,369 |
Total accumulated earnings |
$1,063,342,630 |
Developing World Fund |
|
Undistributed ordinary income |
$16,237 |
Tax accumulated earnings |
16,237 |
Accumulated capital and other losses |
(1,315,151) |
Other accumulated losses |
(183,279) |
Unrealized appreciation |
2,622,388 |
Other unrealized losses |
(136) |
Total accumulated earnings |
$1,140,059 |
At May 31, 2014, the Funds had the following capital loss carryforwards, subject to regulation. Prior to their expiration, such loss carryforwards may be used to offset future net capital gains realized for federal income tax purposes.
Income Fund |
Growth Fund |
Developing World Fund |
|
Capital loss carryforwards expiring 2018 |
$- |
$- |
$- |
Capital loss carryforwards expiring 2019 |
- |
- |
19,458 |
Short-term loss carryforwards unlimited expiration |
- |
- |
435,720 |
Long-term loss carryforwards unlimited expiration |
- |
- |
859,973 |
Total capital loss carryforwards |
- |
- |
1,315,151 |
Post-October loss deferral¹ |
$288 |
$- |
$183,279 |
¹ Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of a fund's next taxable year.
Income Fund |
Growth Fund |
Developing World Fund |
|
Total capital loss carryforward utilized at May 31, 2014 |
$- |
$2,857,825 |
$- |
Note 7 — Investments
During the fiscal period ended November 30, 2014, the Funds purchased and sold the following amounts of securities.
Purchases |
Sales |
|
Income Fund |
$- |
$62,087,268 |
Growth Fund |
- |
106,654,738 |
Developing World Fund |
$4,885,361 |
$1,389,484 |
Note 8 — Custodian
Under agreements in place with the Trust's custodian, Bank of New York Mellon, custody fees are reduced by credits for cash balances. For the fiscal period ended November 30, 2014, such reductions were as follows:
Income Fund |
Growth Fund |
Developing World Fund |
|
Custodian Fee Credits |
$37,535 |
$50,929 |
$6,511 |
Note 9 — Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.
32 |
Semi-Annual Report November 30, 2014 |
All mutual funds have operating expenses. As an Amana Mutual Fund shareowner, you incur ongoing costs, including management fees, distribution (or service) 12b-1 fees, and other Fund expenses such as shareowner reports (like this one). Operating expenses, which are deducted from a fund's gross earnings, directly reduce the investment return of a fund. Mutual funds (unlike other financial investments) only report their results after deduction of operating expenses.
With the Amana Funds, unlike many mutual funds, you do not incur sales charges (loads) on purchases, reinvested dividends, or other distributions. You do not incur redemption fees or exchange fees. You may incur fees related to extra services requested by you for your account, such as bank wires. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
Examples
The following examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2014 to November 30, 2014).
Actual Expenses
The first line for each Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. The Funds may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.
Hypothetical Example For Comparison Purposes
The second line for each Fund provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees charged by custodians other than Saturna Trust Company (note that Saturna does not charge such fees to shareowners directly on Saturna IRAs, ESAs, or HSAs with the Amana Funds), and charges for extra services such as bank wires.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or exchange fees (note that the Amana Funds do not assess any such transactional costs). Therefore, the "Hypothetical" line of each fund is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
Beginning Account Value |
Ending Account Value |
Expenses Paid During Period |
Annualized Expense Ratio |
|
Income Fund |
||||
Investor Shares (AMANX), Actual |
$1,000.00 |
$1,052.30 |
$5.76 |
1.12% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.45 |
$5.67 |
1.12% |
Institutional Shares (AMINX), Actual |
$1,000.00 |
$1,053.60 |
$4.53 |
0.88% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.66 |
$4.46 |
0.88% |
Growth Fund |
||||
Investor Shares (AMAGX), Actual |
$1,000.00 |
$1,108.10 |
$5.71 |
1.08% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.65 |
$5.47 |
1.08% |
Institutional Shares (AMIGX), Actual |
$1,000.00 |
$1,109.50 |
$4.34 |
0.82% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.96 |
$4.15 |
0.82% |
Developing World Fund |
||||
Investor Shares (AMDWX), Actual |
$1,000.00 |
$1,014.70 |
$7.47 |
1.48% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,017.65 |
$7.49 |
1.48% |
Institutional Shares (AMIDX), Actual |
$1,000.00 |
$1,015.60 |
$5.96 |
1.18% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.15 |
$5.97 |
1.18% |
Expenses are equal to annualized expense ratios indicated above (based on the most recent semi-annual period of June 1, 2014, through November 30, 2014), multiplied by the average account value over the period, multiplied by 183/365 to reflect the semi-annual period.
Semi-Annual Report November 30, 2014 | 33 |
Availability of Quarterly Portfolio Information (1) The Amana Funds file complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. (2) The Funds' Forms N-Q are available on the SEC's website at www.sec.gov. (3) The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800/SEC-0330. (4) The Funds make a complete schedule of portfolio holdings after the end of each month available at www.amanafunds.com. |
Availability of Proxy Voting Information (1) A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-888-732-6262; (b) on the Funds' website at www.amanafunds.com; and (c) on the SEC's website at www.sec.gov. (2) Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-888-732-6262; (b) on the Funds' website at www.amanafunds.com; and (c) on the SEC's website at www.sec.gov. |
Householding Policy To reduce expenses, we may mail only one copy of the Funds' prospectus, each annual and semi-annual report, and proxy statements, when necessary, to those addresses shared by two or more accounts. If you wish to receive individual and/or more copies of these documents, please call us at 1-888-732-6262 or write to us at Saturna Capital/Amana Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you individual copies thirty days after receiving your request. If you are currently receiving multiple copies and wish to receive only one copy, please call us at 1-888-732-6262 or write to us at Saturna Capital/Amana Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you a single copy with subsequent report mailings. |
34 |
Semi-Annual Report November 30, 2014 |
Privacy Statement At Saturna Capital and the Amana Mutual Funds Trust, we understand the importance of maintaining the privacy of your financial information. We want to assure you that we protect the confidentiality of any personal information that you share with us. In addition, we do not sell information about our current or former customers. In the course of our relationship, we gather certain non-public information about you, including your name, address, investment choices, and account information. We do not disclose your information to unaffiliated third parties unless it is necessary to process a transaction; service your account; deliver your account statements, shareholder reports and other information; or as required by law. When we disclose information to unaffiliated third parties, we require a contract to restrict the companies' use of customer information and from sharing or using it for any purposes other than performing the services for which they were required. We may share information within the Saturna Capital family of companies in the course of informing you about products or services that may address your investing needs. We maintain our own technology resources to minimize the need for any third party services, and restrict access to information within Saturna. We maintain physical, electronic, and procedural safeguards to guard your personal information. If you have any questions or concerns about the security or privacy of your information please call us at 1-800-728-8762. |
Semi-Annual Report November 30, 2014 | 35 |
|
||
Amana Mutual Funds Trust began operations in 1986. Saturna Capital Corporation, with extensive experience in mutual funds, invests the Trust's portfolios and handles daily operations under supervision of Amana's Board of Trustees. (logo omitted) |
Investment Adviser, |
Saturna Capital Corporation |
Custodian |
Bank of New York Mellon |
|
Independent Registered |
Tait, Weller & Baker LLP |
|
Legal Counsel |
K & L Gates LLP |
|
This report is for the information of the shareowners of the Funds. It is not authorized for distribution to prospective investors unless it is accompanied or preceded by an effective prospectus. |
Not applicable.
Not applicable.
Not applicable.
Not applicable.
(a) Included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable
Not applicable.
Not applicable.
Not applicable.
Not applicable.
(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On December 24, 2014, Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer) reviewed the internal control procedures for Amana Mutual Funds Trust and found them reasonable and adequate.
(b) No change.
Exhibits included with this filing:
(a)(1) Code of Ethics.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AMANA MUTUAL FUNDS TRUST
By:
/s/ Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 29, 2015
Date
Pursuant to the requirements of the Securities Exchange Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated.
By:
/s/ Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 29, 2015
Date
By:
/s/ Christopher Fankhauser, Treasurer
Signature and Title
Christopher Fankhauser, Treasurer
Printed name and Title
January 29, 2015
Date
# # #
CERTIFICATIONS
I, Nicholas Kaiser, certify that:
1. I have reviewed this report on Form N-CSRS of Amana Mutual Funds Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: January 29, 2015
/s/ Nicholas Kaiser
President
CERTIFICATIONS
I, Christopher Fankhauser, certify that:
1. I have reviewed this report on Form N-CSRS of Amana Mutual Funds Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed, to
the registrants auditors and the audit committee of the registrants
board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: January 29, 2015
/s/ Christopher Fankhauser
Treasurer
CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002 (18 U.S.C 1350)
I, Nicholas Kaiser, certify that:
This certification is being furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Registrant’s Semi-Annual Report on Form N-CSRS for the period ended November 30, 2014 (the “Report”).
I hereby certify that to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: January 29, 2015
/s/ Nicholas Kaiser
President
CERTIFICATION UNDER SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002 (18 U.S.C 1350)
I, Christopher Fankhauser, certify that:
This certification is being furnished pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with the filing of the Registrant’s Semi-Annual Report on Form N-CSRS for the period ended November 30, 2014 (the “Report”).
I hereby certify that to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: January 29, 2015
/s/ Christopher Fankhauser
Treasurer
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