SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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)
Nicole Trudeau
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, 2019
Date of reporting period: November 30, 2018
Item 1. Semi-Annual Report
(graphic omitted) Amana Mutual Funds TrustSemi-Annual ReportNovember 30, 2018 |
Income Fund |
Growth Fund |
|
Developing World Fund |
|
Participation Fund |
Beginning on January 29, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Amana Mutual Funds' annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds' website (www.saturna.com/reports), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 800-SATURNA (800-728-8762) or by sending an e-mail request to Amana Mutual Funds at info@saturna.com.
Beginning on January 29, 2019, you may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800-SATURNA (800-728-8762) or send an e-mail request to Amana Mutual Funds at info@saturna.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Funds.
Performance Summary |
As of November 30, 2018
Average Annual Returns (before any taxes paid by shareowners) |
1 Year |
3 Year |
5 Year |
10 Year |
15 Year |
Expense Ratio1 |
Amana Income Fund Investor Shares (AMANX) |
3.10% |
9.96% |
7.93% |
11.36% |
10.58% |
1.10% |
Amana Income Fund Institutional Shares(AMINX) |
3.33% |
10.22% |
8.19% |
n/a |
n/a |
0.87% |
Amana Growth Fund Investor Shares (AMAGX) |
11.30% |
14.87% |
12.47% |
14.02% |
11.36% |
1.08% |
Amana Growth Fund Institutional Shares (AMIGX) |
11.57% |
15.14% |
12.72% |
n/a |
n/a |
0.85% |
Amana Developing World Fund Investor Shares (AMDWX) |
-10.61% |
1.30% |
-2.69% |
n/a |
n/a |
1.31% |
Amana Developing World Fund Institutional Shares (AMIDX) |
-10.50% |
1.48% |
-2.46% |
n/a |
n/a |
1.13% |
Amana Participation Fund Investor Shares (AMAPX) |
-0.47% |
1.41% |
n/a |
n/a |
n/a |
0.87% |
Amana Participation Fund Institutional Shares (AMIPX) |
-0.34% |
1.59% |
n/a |
n/a |
n/a |
0.62% |
As of December 31, 2018
Average Annual Returns (before any taxes paid by shareowners) |
1 Year |
3 Year |
5 Year |
10 Year |
15 Year |
Expense Ratio1 |
Amana Income Fund Investor Shares (AMANX) |
-5.22% |
8.04% |
5.98% |
10.39% |
9.40% |
1.10% |
Amana Income Fund Institutional Shares (AMINX) |
-4.99% |
8.30% |
6.24% |
n/a |
n/a |
0.87% |
Amana Growth Fund Investor Shares (AMAGX) |
2.44% |
12.45% |
10.05% |
12.76% |
10.51% |
1.08% |
Amana Growth Fund Institutional Shares (AMIGX) |
2.67% |
12.71% |
10.30% |
n/a |
n/a |
0.85% |
Amana Developing World Fund Investor Shares (AMDWX) |
-15.56% |
1.15% |
-2.85% |
n/a |
n/a |
1.31% |
Amana Developing World Fund Institutional Shares (AMIDX) |
-15.43% |
1.38% |
-2.60% |
n/a |
n/a |
1.13% |
Amana Participation Fund Investor Shares (AMAPX) |
-0.13% |
1.58% |
n/a |
n/a |
n/a |
0.87% |
Amana Participation Fund Institutional Shares (AMIPX) |
0.11% |
1.78% |
n/a |
n/a |
n/a |
0.62% |
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 affect performance.
The Amana Developing World Fund began operations September 28, 2009.
Institutional Shares of the Amana Income, Growth, and Developing World Funds began operations September 25, 2013.
The Amana Participation Fund began operations September 28, 2015.
A note about risk: Please see the Notes to Financial Statements beginning on page 36 for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see the Funds' prospectus or each Fund's summary prospectus.
¹ By regulation, expense ratios shown in this table are as stated in the Funds' most recent prospectus which is dated September 28, 2018, and incorporates results for the fiscal year ended May 31, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. Also by regulation, this page shows performance as of the most recent calendar quarter-end in addition to performance through the Funds' most recent fiscal period.
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.
2 |
Semi-Annual Report |
November 30, 2018 |
Fellow Shareowners:
After the unprecedented absence of volatility over the course of 2017, the past year saw a return to more normal conditions. Equity markets experienced a sharp tax-reform inspired early January run-up, followed by an even greater sell-off, with the market bottoming toward the end of the first quarter before embarking on a buoyant run that led the S&P 500 Index to register double-digit gains over the second and third quarters. The exuberance rapidly evaporated entering the final quarter of the year, with the S&P 500 Index closing the financial year ended November 30, 2018 with a gain of 6.27%. By the end of the calendar year, however, that had disappeared, and the Index tallied a loss of -4.38%.
International markets failed to maintain the previous year's strong performance with the Dow Jones Islamic Market World Developed Index rising a modest 2.33% for the year ended November 30, 2018. Emerging markets also suffered, with the MSCI Emerging Markets Index down -9.09%. Islamic fixed-income markets were subdued, with the FTSE Sukuk Index falling -0.66%.
The Amana Fund portfolios performed well compared to these domestic and foreign indices, which do not have operating expenses. Fund performance relative to benchmarks was especially strong during the end-of-year market downturn. The Amana Growth Investor Shares gained 11.30%, Amana Income Investor Shares gained 3.10%, Amana Developing World Investor Shares fell -10.61%, and Amana Participation Investor Shares fell -0.47% for the 12-month period. As expected, lower expenses allowed the Institutional class shares of each Fund to post slightly better returns: Amana Growth 11.57%, Amana Income 3.33%, Amana Developing World -10.50%, and Amana Participation -0.34%. Over 35.82% of Amana's assets are now in Institutional shares.
The Amana Funds follow Islamic principles, which preclude most investments in banking and finance. We favor companies with low debt levels and strong balance sheets.
Trade Tensions and Interest Rates Dominate
The flagship topics of the year were undoubtedly trade tensions, especially with China, and the pace of Federal Reserve interest rate normalization. The US government imposed a variety of tariff rates on a wide range of goods from Europe, Canada, Australia and, most notably, China. Given its importance as a global manufacturing center, the action against China (and the threats of further measures if the country did not take steps to address US concerns), had a deleterious effect on China's stock market, with regional and, arguably, global spill over. At the Federal Reserve, the Open Market Committee adjusted rates higher at each of their quarterly meetings, raising questions over whether they had perhaps been too aggressive. We do not share that concern from a macro-economic perspective. Indeed, we would argue that if somewhat higher rates were to curtail the corporate appetite for leveraging balance sheets, it would be a positive development.
Top Short and 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 long-term performance recognition that Amana has received is so important to our shareowners.
As of December 31, 2018, Amana Income and Amana Growth maintained strong long-term rankings in their respective mutual fund categories. Amana Income Investor Shares ranked in the top 1% in Morningstar's Large Blend category, out of 528 similar funds surviving for at least 15 years. Amana Growth Investor Shares ranked in the top 6% in the Large Growth category, out of 563 similar funds surviving for 15 years. While gratifying, we are also pleased with the shorter-term performance, especially of the Amana Growth Fund, which finished 2018 in the 12th percentile of the Morningstar Large Growth Category. Amana Income also outperformed, finishing in the 43rd percentile of the Large Blend category. Please refer to Morningstar Ratings on pages six and seven for more details.
Our Commitment to Lower Fees
Beginning January 1, 2018, the Amana equity funds are operating with expenses lower by three to 10 basis points. The trustees approved an advisory fee reduction at their meeting on December 11, 2017, lowering the fees of the Income, Growth, and Developing World Funds to 0.85% on the first $1 billion of a fund's average daily net assets, 0.75% on the next $1 billion, and 0.65% on assets over $2 billion. There is no change to the 0.50% advisory fee for the Participation Fund.
Amana Participation Fund Outperforms
While the Participation Fund slipped -0.47% during the financial year, that was a better performance than the -0.66% decline in the FTSE Sukuk Index.
The Participation Fund invests primarily in income-producing notes and certificates issued by foreign governments, their agencies, and financial institutions in transactions structured to be in accordance with Islamic principles—commonly known as sukuk. While the risks of investing in foreign fixed-income issues are material,
Semi-Annual Report |
November 30, 2018 |
3 |
we believe the Amana Participation Fund offers investors seeking exposure to Islamic fixed-income an excellent opportunity. The Fund may be especially appealing to investors seeking a balance to the other three Amana Funds, which invest only in equities.
Amana Income Fund – 32 Years of Solid Investing
On June 23, 1986, Amana Income Fund began operations, with both Dr. Yaqub Mirza and Mr. Nicholas Kaiser as founding members of the board of trustees. From inception to November 30, 2018–over 32 years–the Fund's Investor Shares provided an average annual return of 8.69% (after expenses). Few investment vehicles have such a long-term record of success.
As Dr. Mirza and Mr. Kaiser plan for eventual retirement, and as careful stewards, they are working to ensure the established methods of Amana's successful investing are continued by capable hands in the next generation.
Morningstar Awards Amana Highest Sustainability Ratings
The Morningstar Sustainability Rating™ for funds premiered in March of 2016 (see details on next page), giving investors across the globe a way to compare mutual fund portfolios based on an independent measure of sustainability. The Morningstar ratings are calculated using fund holdings data underpinned with company-level environmental, social, and governance (ESG) information from Sustainalytics, a leading provider of ESG research.
Amana Income and Amana Growth both received Morningstar's highest 5 Globe Sustainability Ratings as of November 30, 2018, and Amana Developing World received a 4 Globe above average rating.
Income Fund ranked in the second percentile of 1207 funds in its category, and Growth Fund ranked in the first percentile of 1252 funds in its category. Developing World Fund ranked in the 12th percentile of 710 funds in its category.
We believe the high ratings the Amana Funds received provide strong evidence of the linkage between Islamic and sustainable investing. Investors are cautioned, however, that more than 150 vendors offer "sustainable" investments data, and that no accepted global measurement yet exists.
Respectfully,
(photo omitted)
Nicholas Kaiser,
President
(photo omitted)
M. Yaqub Mirza,
Independent Board Chairman
Amana Funds Portfolio Managers |
||||
(photo omitted) |
Nicholas Kaiser MBA, CFA® |
(photo omitted) |
Patrick Drum MBA, CFA®, CFP® |
|
(photo omitted) |
Scott Klimo CFA® |
(photo omitted) |
Bryce Fegley CFA®, CIPM® |
|
(photo omitted) |
Monem Salam MBA |
|||
4 |
Semi-Annual Report |
November 30, 2018 |
Morningstar Sustainability Ratings™ |
As of November 30, 2018 |
At Saturna Capital, we describe ourselves as values-based investors. We believe our approach improves the likelihood of achieving superior investment results over the long term. Our approach also leads to investment portfolios we can be proud of from the perspective of Environmental, Social, and Governance (ESG) issues. Morningstar recently partnered with leading ESG research firm Sustainalytics to develop the Morningstar Sustainability Rating™ – here are the rated Amana fund's latest results:
Amana Income Fund |
Amana Growth Fund |
|||
Investor Shares (AMANX) |
Ø Ø Ø Ø Ø |
Investor Shares (AMAGX) |
Ø Ø Ø Ø Ø |
|
Institutional Shares (AMINX) |
Ø Ø Ø Ø Ø |
Institutional Shares (AMIGX) |
Ø Ø Ø Ø Ø |
|
Percent Rank: 2 |
Percent Rank: 1 |
|||
Among 1,207 Large Blend Funds |
Among 1,252 Large Growth Funds |
|||
Amana Developing World Fund |
The Morningstar Sustainability Rating™ gives investors across the globe a way to compare fund portfolios based on a standard measure of sustainability. The rating is a holdings-based calculation using company-level environmental, social, and governance (ESG) analytics from Sustainalytics. |
|||
Investor Shares (AMDWX) |
Ø Ø Ø Ø Ø |
|||
Institutional Shares (AMIDX) |
Ø Ø Ø Ø Ø |
|||
Percent Rank: 12 |
||||
Among 710 Diversified Emerging Markets Funds |
||||
The Morningstar Sustainability Rating and the Morningstar Portfolio Sustainability Score are not based on fund performance and are not equivalent to the Morningstar Rating ("Star Rating").
© 2018 Morningstar®. All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Morningstar Sustainability Ratings are as of November 30, 2018. The Morningstar Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund's portfolio are managing their environmental, social, and governance ("ESG") risks and opportunities relative to the fund's Morningstar category peers. The Morningstar Sustainability Rating calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability Score™. The Morningstar Portfolio Sustainability Score is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund's rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics' ESG scores from the same month as the portfolio as-of date.
The Funds were rated on the following percentages of Assets Under Management:
Amana Income Fund 94%
Amana Growth Fund 93%
Amana Developing World Fund 80%
The Funds' portfolios are actively managed and are subject to change, which may result in a different Morningstar Sustainability Score and Rating.
% Rank in Category is the fund's percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.
The Amana Participation Fund has not yet received a Morningstar Sustainability Rating.
Semi-Annual Report |
November 30, 2018 |
5 |
Morningstar Ratings (as of November 30, 2018) |
Morningstar™ Ratings1 |
1 Year |
3 Year |
5 Year |
10 Year |
15 Year |
Overall |
Amana Income Fund – "Large Blend" Category |
||||||
Investor Shares (AMANX) |
n/a |
★ ★ |
★ ★ |
★ ★ |
n/a |
★ ★ |
% Rank in Category |
73 |
67 |
82 |
89 |
1 |
n/a |
Institutional Shares (AMINX) |
n/a |
★ ★ ★ |
★ ★ |
☆ ☆ |
n/a |
★ ★ |
% Rank in Category |
70 |
63 |
78 |
88 |
1 |
n/a |
Number of Funds in Category |
1,402 |
1,207 |
1,068 |
808 |
528 |
1,207 |
Amana Growth Fund – "Large Growth" Category |
||||||
Investor Shares (AMAGX) |
n/a |
★ ★ ★ ★ ★ |
★ ★ ★ ★ |
★ ★ ★ |
n/a |
★ ★ ★ ★ |
% Rank in Category |
15 |
10 |
26 |
69 |
6 |
n/a |
Institutional Shares (AMIGX) |
n/a |
★ ★ ★ ★ ★ |
★ ★ ★ ★ |
☆ ☆ ☆ |
n/a |
★ ★ ★ ★ |
% Rank in Category |
13 |
8 |
22 |
67 |
5 |
n/a |
Number of Funds in Category |
1,417 |
1,252 |
1,115 |
804 |
560 |
1,252 |
Amana Developing World Fund – "Diversified Emerging Markets" Category |
||||||
Investor Shares (AMDWX) |
n/a |
★ |
★ |
n/a |
n/a |
★ |
% Rank in Category |
53 |
97 |
97 |
n/a |
n/a |
n/a |
Institutional Shares (AMIDX) |
n/a |
★ |
★ |
n/a |
n/a |
★ |
% Rank in Category |
51 |
97 |
96 |
n/a |
n/a |
n/a |
Number of Funds in Category |
848 |
710 |
521 |
236 |
115 |
710 |
Amana Participation Fund – "Emerging Markets Bond" Category |
||||||
Investor Shares (AMAPX) |
n/a |
★ |
n/a |
n/a |
n/a |
★ |
% Rank in Category |
4 |
97 |
n/a |
n/a |
n/a |
n/a |
Institutional Shares (AMIPX) |
n/a |
★ |
n/a |
n/a |
n/a |
★ |
% Rank in Category |
4 |
96 |
n/a |
n/a |
n/a |
n/a |
Number of Funds in Category |
289 |
225 |
170 |
50 |
30 |
225 |
¹Source: Morningstar November 30, 2018 and December 30, 2018. Morningstar, Inc. is an independent fund performance monitor. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance (not including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. 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.
% Rank in Category is the fund's percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.
Performance data quoted in this report represents past performance, is after expenses paid by a fund, is before any taxes payable by shareowners, and is no guarantee of future results.
6 |
Semi-Annual Report |
November 30, 2018 |
Morningstar Ratings (as of December 31, 2018) |
Morningstar™ Ratings1 |
1 Year |
3 Year |
5 Year |
10 Year |
15 Year |
Overall |
Amana Income Fund – "Large Blend" Category |
||||||
Investor Shares (AMANX) |
n/a |
★ ★ ★ |
★ ★ |
★ ★ |
n/a |
★ ★ |
% Rank in Category |
43 |
52 |
72 |
85 |
1 |
n/a |
Institutional Shares (AMINX) |
n/a |
★ ★ ★ |
★ ★ ★ |
☆ ☆ |
n/a |
★ ★ ★ |
% Rank in Category |
40 |
46 |
67 |
84 |
1 |
n/a |
Number of Funds in Category |
1,402 |
1,208 |
1,071 |
805 |
528 |
1,208 |
Amana Growth Fund – "Large Growth" Category |
||||||
Investor Shares (AMAGX) |
n/a |
★ ★ ★ ★ ★ |
★ ★ ★ ★ |
★ ★ ★ |
n/a |
★ ★ ★ ★ |
% Rank in Category |
12 |
6 |
21 |
71 |
6 |
n/a |
Institutional Shares (AMIGX) |
n/a |
★ ★ ★ ★ ★ |
★ ★ ★ ★ |
☆ ☆ ☆ |
n/a |
★ ★ ★ ★ |
% Rank in Category |
11 |
5 |
17 |
68 |
5 |
n/a |
Number of Funds in Category |
1,405 |
1,247 |
1,107 |
799 |
564 |
1,247 |
Amana Developing World Fund – "Diversified Emerging Markets" Category |
||||||
Investor Shares (AMDWX) |
n/a |
★ |
★ |
n/a |
n/a |
★ |
% Rank in Category |
47 |
97 |
96 |
n/a |
n/a |
n/a |
Institutional Shares (AMIDX) |
n/a |
★ |
★ ★ |
n/a |
n/a |
★ ★ |
% Rank in Category |
46 |
97 |
95 |
n/a |
n/a |
n/a |
Number of Funds in Category |
836 |
708 |
533 |
238 |
115 |
708 |
Amana Participation Fund – "Emerging Markets Bond" Category |
||||||
Investor Shares (AMAPX) |
n/a |
★ |
n/a |
n/a |
n/a |
★ |
% Rank in Category |
2 |
98 |
n/a |
n/a |
n/a |
n/a |
Institutional Shares (AMIPX) |
n/a |
★ |
n/a |
n/a |
n/a |
★ |
% Rank in Category |
1 |
97 |
n/a |
n/a |
n/a |
n/a |
Number of Funds in Category |
295 |
224 |
174 |
49 |
26 |
224 |
Semi-Annual Report |
November 30, 2018 |
7 |
Amana Income Fund: Performance Summary |
Average Annual Returns (as of November 30, 2018)
1 Year |
5 Year |
10 Year |
Expense Ratio1 |
|
Investor Shares (AMANX) |
3.10% |
7.93% |
11.36% |
1.10% |
Institutional Shares (AMINX)² |
3.33% |
8.19% |
n/a |
0.87% |
S&P 500 Index |
6.27% |
11.11% |
14.30% |
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 May 31, 2018, 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 $29,322 versus $38,109 in the Index. Investor Shares are used in this chart because they represent the larger share class in terms of assets and have a longer track record. 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 stated in the Funds' most recent prospectus, which is dated September 28, 2018, and incorporates results for the fiscal year ended May 31, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent older 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 10 Holdings |
Portfolio Diversification |
|||||
% of Total Net Assets |
% of Total Net Assets |
|||||
Eli Lilly |
5.5% |
Large Pharma |
20.0% |
█ |
|
|
Microsoft |
4.5% |
Packaged Food |
6.9% |
█ |
||
3M |
4.0% |
Specialty Chemicals |
6.9% |
█ |
||
Pfizer |
4.0% |
Basic & Diversified Chemicals |
6.2% |
█ |
||
McCormick & Co |
3.9% |
Household Products |
6.1% |
█ |
||
Rockwell Automation |
3.9% |
Semiconductor Devices |
6.1% |
█ |
||
Parker Hannifin |
3.5% |
Commercial & Residential Building Equipment & Systems |
4.6% |
█ |
||
Canadian National Railway |
3.4% |
Infrastructure Software |
4.5% |
█ |
||
Intel |
3.3% |
Containers & Packaging |
4.0% |
█ |
||
Honeywell International |
3.3% |
Measurement Instruments |
3.9% |
█ |
||
Flow Control Equipment |
3.5% |
█ |
||||
Rail Freight |
3.4% |
█ |
||||
Industrial Machinery |
3.1% |
█ |
||||
Other Industries < 3.0% |
19.6% |
█ |
||||
Other Assets (net of liabilities) |
1.2% |
█ |
||||
8 |
Semi-Annual Report |
November 30, 2018 |
Amana Income Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks – 98.8% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Consumer Discretionary |
||||
Apparel, Footwear & Accessory Design |
||||
Nike, Class B |
320,000 |
$5,233,574 |
$24,038,400 |
1.8% |
Automotive Retailers |
||||
Genuine Parts |
382,000 |
15,016,749 |
39,617,220 |
2.9% |
Home Improvement |
||||
Stanley Black & Decker |
100,000 |
6,793,209 |
13,085,000 |
1.0% |
27,043,532 |
76,740,620 |
5.7% |
||
Consumer Staples |
||||
Beverages |
||||
PepsiCo |
250,000 |
15,481,726 |
30,485,000 |
2.3% |
Household Products |
||||
Colgate-Palmolive |
524,000 |
18,364,706 |
33,284,480 |
2.5% |
Kimberly-Clark |
230,000 |
13,960,736 |
26,535,100 |
2.0% |
Procter & Gamble |
40,000 |
2,317,748 |
3,780,400 |
0.3% |
Unilever ADR |
325,000 |
8,850,327 |
17,644,250 |
1.3% |
43,493,517 |
81,244,230 |
6.1% |
||
Packaged Food |
||||
General Mills |
500,000 |
15,583,597 |
21,155,000 |
1.6% |
JM Smucker |
185,000 |
9,946,573 |
19,334,350 |
1.4% |
McCormick & Co |
350,000 |
19,137,926 |
52,500,000 |
3.9% |
44,668,096 |
92,989,350 |
6.9% |
||
103,643,339 |
204,718,580 |
15.3% |
||
Health Care |
||||
Large Pharma |
||||
AbbVie |
380,000 |
12,238,643 |
35,822,600 |
2.6% |
Bristol-Myers Squibb |
650,000 |
15,185,381 |
34,749,000 |
2.6% |
Eli Lilly |
620,000 |
22,314,728 |
73,556,800 |
5.5% |
GlaxoSmithKline ADR |
381,107 |
13,360,123 |
15,956,950 |
1.2% |
Johnson & Johnson |
230,000 |
16,782,694 |
33,787,000 |
2.5% |
Novartis ADR |
235,400 |
12,412,698 |
21,546,162 |
1.6% |
Pfizer |
1,150,000 |
20,853,910 |
53,164,500 |
4.0% |
113,148,177 |
268,583,012 |
20.0% |
||
Life Science Equipment |
||||
Abbott Laboratories |
350,000 |
8,392,885 |
25,917,500 |
1.9% |
121,541,062 |
294,500,512 |
21.9% |
||
Continued on next page. |
||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
9 |
Amana Income Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks – 98.8% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Industrials |
||||
Aircraft & Parts |
||||
United Technologies |
160,000 |
$8,150,538 |
$19,494,400 |
1.5% |
Commercial & Residential Building Equipment & Systems |
||||
Honeywell International |
300,000 |
12,025,212 |
44,025,000 |
3.3% |
Johnson Controls International |
500,000 |
15,219,297 |
17,390,000 |
1.2% |
Resideo Technologies¹ |
50,000 |
394,756 |
1,031,500 |
0.1% |
27,639,265 |
62,446,500 |
4.6% |
||
Flow Control Equipment |
||||
Parker Hannifin |
275,000 |
12,527,667 |
47,311,000 |
3.5% |
Industrial Distribution & Rental |
||||
W.W. Grainger |
80,000 |
7,590,798 |
25,123,200 |
1.9% |
Industrial Machinery |
||||
Illinois Tool Works |
300,000 |
14,672,460 |
41,715,000 |
3.1% |
Measurement Instruments |
||||
Rockwell Automation |
300,000 |
13,657,124 |
52,302,000 |
3.9% |
Rail Freight |
||||
Canadian National Railway |
534,000 |
12,727,273 |
45,827,880 |
3.4% |
96,965,125 |
294,219,980 |
21.9% |
||
Materials |
||||
Agricultural Chemicals |
||||
Nutrien |
170,000 |
10,824,481 |
8,765,200 |
0.7% |
Basic & Diversified Chemicals |
||||
Air Products & Chemicals |
200,000 |
11,099,528 |
32,174,000 |
2.4% |
Linde¹ |
220,000 |
16,103,769 |
34,991,000 |
2.6% |
Methanex |
300,000 |
5,849,587 |
16,632,000 |
1.2% |
33,052,884 |
83,797,000 |
6.2% |
||
Containers & Packaging |
||||
3M |
260,000 |
19,087,243 |
54,059,200 |
4.0% |
Non Wood Building Materials |
||||
Carlisle |
330,000 |
9,208,050 |
34,821,600 |
2.6% |
Specialty Chemicals |
||||
DowDuPont |
641,000 |
22,025,909 |
37,081,850 |
2.7% |
PPG Industries |
400,000 |
13,211,578 |
43,732,000 |
3.3% |
RPM International |
180,000 |
3,642,493 |
11,871,000 |
0.9% |
38,879,980 |
92,684,850 |
6.9% |
||
111,052,638 |
274,127,850 |
20.4% |
||
Continued on next page. |
||||
10 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Income Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks – 98.8% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Technology |
||||
Communications Equipment |
||||
Cisco Systems |
150,000 |
$7,097,753 |
$7,180,500 |
0.6% |
Infrastructure Software |
||||
Microsoft |
550,000 |
11,610,585 |
60,989,500 |
4.5% |
Semiconductor Devices |
||||
Intel |
900,000 |
19,537,540 |
44,379,000 |
3.3% |
Microchip Technology |
504,000 |
13,974,829 |
37,800,000 |
2.8% |
33,512,369 |
82,179,000 |
6.1% |
||
Semiconductor Manufacturing |
||||
Taiwan Semiconductor ADR |
850,048 |
8,455,615 |
31,953,304 |
2.4% |
60,676,322 |
182,302,304 |
13.6% |
||
Total investments |
$520,922,018 |
$1,326,609,846 |
98.8% |
|
Other assets (net of liabilities) |
16,313,584 |
1.2% |
||
Total net assets |
$1,342,923,430 |
100.0% |
||
¹ Non-income producing ADR: American Depository Receipt |
||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
11 |
Amana Income Fund
Statement of Assets and Liabilities |
|
As of November 30, 2018 |
|
Assets |
|
Investments in securities, at value |
$1,326,609,846 |
Cash |
13,404,040 |
Dividends receivable |
4,714,285 |
Receivable for fund shares sold |
173,501 |
Prepaid expenses |
23,079 |
Insurance reserve premium |
2,529 |
Total assets |
1,344,927,280 |
Liabilities |
|
Payable for fund shares redeemed |
987,463 |
Accrued advisory fees |
894,581 |
Accrued distribution fee |
64,217 |
Payable to affiliates |
43,244 |
Accrued other expenses |
7,554 |
Accrued Chief Compliance Officer expenses |
3,875 |
Accrued retirement plan custodial fees |
2,916 |
Total liabilities |
2,003,850 |
Net Assets |
$1,342,923,430 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$467,450,354 |
Total distributable earnings |
875,473,076 |
Net assets applicable to Fund shares outstanding |
$1,342,923,430 |
Net asset value per Investor Share |
AMANX |
Net assets, at value |
$870,524,433 |
Shares outstanding |
16,793,816 |
Net asset value, offering and redemption price per share |
$51.84 |
Net asset value per Institutional Share |
AMINX |
Net assets, at value |
$472,398,997 |
Shares outstanding |
9,136,872 |
Net asset value, offering and redemption price per share |
$51.70 |
Statement of Operations |
|
Period ended November 30, 2018 |
|
Investment income |
|
Dividend income |
$15,557,391 |
Miscellaneous income |
6,150 |
Total investment income |
15,563,541 |
Expenses |
|
Investment adviser fees |
5,608,146 |
Distribution fees – Investor Shares |
1,113,746 |
Professional fees |
37,766 |
Printing and postage |
33,102 |
Custodian fees |
32,902 |
Retirement plan custodial fees |
|
Investor Shares |
38 |
Institutional Shares |
29,224 |
Filing and registration fees |
21,765 |
Chief Compliance Officer expenses |
20,436 |
Trustee fees |
17,413 |
Other expenses |
16,925 |
Transfer agent fees |
|
Investor Shares |
6,331 |
Institutional Shares |
8,115 |
Total gross expenses |
6,945,909 |
Less custodian fee credits |
(32,902) |
Net expenses |
6,913,007 |
Net investment income |
$8,650,534 |
Net realized gain from investments and foreign currency |
$16,348,171 |
Net increase in unrealized appreciation on investments |
54,561,717 |
Net gain on investments |
$70,909,888 |
Net increase in net assets resulting from operations |
$79,560,422 |
12 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Income Fund
Statements of Changes in Net Assets |
Period ended November 30, 2018 |
Year ended May 31, 2018 |
Increase (decrease) in net assets from operations |
||
From operations |
||
Net investment income |
$8,650,534 |
$16,763,526 |
Net realized gain on investment |
16,348,171 |
70,428,803 |
Net increase in unrealized appreciation |
54,561,717 |
16,775,751 |
Net increase in net assets |
79,560,422 |
103,968,080 |
|
Distributions to shareowners from |
||
Net dividend and distribution to shareholders – Investor Shares |
- |
(54,470,931) |
Net dividend and distribution to shareholders – Institutional Shares |
- |
(26,519,827) |
Total distributions |
- |
(80,990,758)A |
|
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
25,770,375 |
80,910,259 |
Institutional Shares |
48,950,551 |
124,277,086 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
53,345,382 |
Institutional Shares |
- |
25,273,099 |
Cost of shares redeemed |
||
Investor Shares |
(89,453,083) |
(227,913,720) |
Institutional Shares |
(56,126,652) |
(74,245,172) |
Total capital share transactions |
(70,858,809) |
(18,353,066) |
Total increase in net assets |
8,701,613 |
4,624,256 |
Net assets |
||
Beginning of period |
1,334,221,817 |
1,329,597,561 |
End of period |
$1,342,923,430 |
$1,334,221,817B |
Shares of the Fund sold and redeemed |
||
|
Investor Shares (AMANX) |
||
Number of shares sold |
505,493 |
1,599,782 |
Number of shares issued in reinvestment of dividends and distributions |
- |
1,046,923 |
Number of shares redeemed |
(1,757,457) |
(4,524,252) |
Net decrease in number of shares outstanding |
(1,251,964) |
(1,877,547) |
|
Institutional Shares (AMINX) |
||
Number of shares sold |
965,169 |
2,465,304 |
Number of shares issued in reinvestment of dividends and distributions |
- |
498,370 |
Number of shares redeemed |
(1,098,243) |
(1,473,507) |
Net increase (decrease) in number of shares outstanding |
(133,074) |
1,490,167 |
A Consists of net investment income distributions of $10,372,652 and $6,425,892 and realized gain distributions of $44,098,279 and $20,093,935 for Investor Shares and Institutional Shares, respectively.
B Includes accumulated net investment income of $76,167.
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
13 |
Amana Income Fund: Financial Highlights
Investor Shares (AMANX) |
Period ended |
Year ended May 31, |
||||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
Net asset value at beginning of period |
$48.91 |
$48.03 |
$44.35 |
$47.01 |
$45.34 |
$38.79 |
Income from investment operations |
||||||
Net investment incomeA |
0.31 |
0.58 |
0.59 |
0.62 |
0.58 |
0.72 |
Net gains (losses) on securities (both realized and unrealized) |
2.62 |
3.28 |
4.90 |
(0.38) |
2.10 |
6.56 |
Total from investment operations |
2.93 |
3.86 |
5.49 |
0.24 |
2.68 |
7.28 |
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.57) |
(0.58) |
(0.65) |
(0.60) |
(0.73) |
Distributions (from capital gains) |
- |
(2.41) |
(1.23) |
(2.25) |
(0.41) |
- |
Total distributions |
- |
(2.98) |
(1.81) |
(2.90) |
(1.01) |
(0.73) |
Net asset value at end of period |
$51.84 |
$48.91 |
$48.03 |
$44.35 |
$47.01 |
$45.34 |
Total ReturnB |
5.99% |
7.82% |
12.67% |
0.81% |
5.94% |
18.82% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$870,524 |
$882,571 |
$956,977 |
$1,047,345 |
$1,357,567 |
$1,524,471 |
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
1.10% |
1.13% |
1.13% |
1.15% |
1.13% |
1.15% |
After custodian fee creditsC |
1.10% |
1.12% |
1.12% |
1.14% |
1.12% |
1.14% |
Ratio of net investment income after custodian fee |
1.18% |
1.14% |
1.29% |
1.41% |
1.26% |
1.71% |
Portfolio turnover rateB |
1% |
1% |
1% |
0% |
0% |
1% |
Institutional Shares (AMINX) |
Period ended |
Year ended May 31, |
Period endedD |
|||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
May 31, 2014 |
Net asset value at beginning of period |
$48.72 |
$47.90 |
$44.30 |
$46.97 |
$45.30 |
$40.66 |
|
Income from investment operations |
||||||
Net investment incomeA |
0.37 |
0.70 |
0.70 |
0.75 |
0.72 |
0.69 |
Net gains (losses) on securities (both realized and unrealized) |
2.61 |
3.26 |
4.90 |
(0.40) |
2.09 |
4.79 |
Total from investment operations |
2.98 |
3.96 |
5.60 |
0.35 |
2.81 |
5.48 |
|
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.73) |
(0.77) |
(0.77) |
(0.73) |
(0.84) |
Distributions (from capital gains) |
- |
(2.41) |
(1.23) |
(2.25) |
(0.41) |
- |
Total distributions |
- |
(3.14) |
(2.00) |
(3.02) |
(1.14) |
(0.84) |
Net asset value at end of period |
$51.70 |
$48.72 |
$47.90 |
$44.30 |
$46.97 |
$45.30 |
Total ReturnB |
6.12% |
8.05% |
12.96% |
1.06% |
6.22% |
13.53% |
|
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$472,399 |
$451,651 |
$372,621 |
$235,928 |
$150,831 |
$83,805 |
|
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
0.87% |
0.89% |
0.89% |
0.90% |
0.88% |
0.90% |
After custodian fee creditsC |
0.86% |
0.88% |
0.89% |
0.89% |
0.87% |
0.90% |
Ratio of net investment income after custodian fee credits to average net assetsC |
1.44% |
1.39% |
1.52% |
1.71% |
1.54% |
2.32% |
Portfolio turnover rateB |
1% |
1% |
1% |
0% |
0% |
1% |
A Calculated using average shares outstanding
B Not annualized for periods of less than one year
C Annualized for periods of less than one year
D Operations commenced on 09/25/2013
14 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund: Performance Summary |
Average Annual Returns (as of November 30, 2018)
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMAGX) |
11.30% |
12.47% |
14.02% |
1.08% |
Institutional Shares (AMIGX)² |
11.57% |
12.72% |
n/a |
0.85% |
S&P 500 Index |
6.27% |
11.11% |
14.30% |
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 May 31, 2008, 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 $37,144 versus $38,109 in the Index. Investor Shares are used in this chart because they represent the larger share class in terms of assets and have a longer track record. 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 stated in the Funds' most recent prospectus, which is dated September 28, 2018, and incorporates results for the fiscal year ended May 31, 2018. 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 objective of the Growth Fund is long-term capital growth, consistent with Islamic principles.
|
Top 10 Holdings |
Portfolio Diversification |
|||||
|
% of Total Net Assets |
% of Total Net Assets |
|||||
Adobe Systems |
6.0% |
Application Software |
13.0% |
█ |
|
|
Intuit |
5.2% |
Household Products |
10.0% |
█ |
||
Apple |
4.8% |
Communications Equipment |
8.6% |
█ |
||
Church & Dwight |
4.3% |
Large Pharma |
8.0% |
█ |
||
Amgen |
4.0% |
Semiconductor Devices |
5.5% |
█ |
||
Cisco Systems |
3.8% |
Semiconductor Manufacturing |
5.3% |
█ |
||
TJX Companies |
3.7% |
Rail Freight |
5.2% |
█ |
||
Estee Lauder, Class A |
3.5% |
Biotech |
4.7% |
█ |
||
Agilent Technologies |
3.5% |
Measurement Instruments |
4.7% |
█ |
||
Johnson & Johnson |
3.3% |
Specialty Apparel Stores |
3.7% |
█ |
||
Life Science Equipment |
3.5% |
█ |
||||
Internet Media |
3.3% |
█ |
||||
Aircraft & Parts |
3.0% |
█ |
||||
Other Industries < 3.0% |
15.8% |
█ |
||||
Other Assets (net of liabilities) |
5.7% |
█ |
||||
Semi-Annual Report |
November 30, 2018 |
15 |
Amana Growth Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks — 94.3% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Communications |
||||
Internet Media |
||||
Alphabet, Class A¹ |
55,000 |
$14,419,301 |
$61,030,750 |
3.3% |
14,419,301 |
61,030,750 |
3.3% |
||
Consumer Discretionary |
||||
Home & Office Product Wholesalers |
||||
Fastenal |
600,000 |
13,668,571 |
35,556,000 |
1.9% |
Home Products Stores |
||||
Lowe's |
400,000 |
8,620,300 |
37,748,000 |
2.0% |
Specialty Apparel Stores |
||||
TJX Companies |
1,400,000 |
15,131,550 |
68,390,000 |
3.7% |
37,420,421 |
141,694,000 |
7.6% |
||
Consumer Staples |
||||
Beverages |
||||
PepsiCo |
235,000 |
14,445,016 |
28,655,900 |
1.5% |
Household Products |
||||
Church & Dwight |
1,200,000 |
21,472,365 |
79,428,000 |
4.3% |
Clorox |
250,000 |
13,936,595 |
41,405,000 |
2.2% |
Estee Lauder, Class A |
458,594 |
16,624,230 |
65,423,020 |
3.5% |
52,033,190 |
186,256,020 |
10.0% |
||
66,478,206 |
214,911,920 |
11.5% |
||
Health Care |
||||
Biotech |
||||
Amgen |
355,000 |
18,341,781 |
73,928,750 |
4.0% |
Celgene¹ |
200,000 |
7,547,036 |
14,444,000 |
0.7% |
25,888,817 |
88,372,750 |
4.7% |
||
Large Pharma |
||||
Eli Lilly |
350,000 |
12,007,975 |
41,524,000 |
2.2% |
Johnson & Johnson |
420,000 |
25,247,246 |
61,698,000 |
3.3% |
Novo Nordisk ADR |
1,002,195 |
7,665,243 |
46,722,331 |
2.5% |
44,920,464 |
149,944,331 |
8.0% |
||
Life Science Equipment |
||||
Agilent Technologies |
900,000 |
16,302,137 |
65,115,000 |
3.5% |
Medical Devices |
||||
Stryker |
300,000 |
15,657,169 |
52,638,000 |
2.8% |
102,768,587 |
356,070,081 |
19.0% |
||
Continued on next page. |
||||
16 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks — 94.3% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
Industrials |
||||
Aircraft & Parts |
||||
Harris |
390,000 |
$11,806,299 |
$55,750,500 |
3.0% |
Building Sub Contractors |
||||
EMCOR Group |
682,750 |
14,388,860 |
49,745,165 |
2.7% |
Measurement Instruments |
||||
Keysight Technologies¹ |
500,000 |
8,390,911 |
30,910,000 |
1.7% |
Trimble¹ |
1,500,000 |
15,966,794 |
57,045,000 |
3.0% |
24,357,705 |
87,955,000 |
4.7% |
||
Metalworking Machinery |
||||
Lincoln Electric Holdings |
360,000 |
8,253,710 |
30,942,000 |
1.6% |
Rail Freight |
||||
Norfolk Southern |
300,000 |
16,971,675 |
51,222,000 |
2.7% |
Union Pacific |
300,000 |
16,986,610 |
46,134,000 |
2.5% |
33,958,285 |
97,356,000 |
5.2% |
||
92,764,859 |
321,748,665 |
17.2% |
||
Technology |
||||
Application Software |
||||
Adobe Systems¹ |
450,000 |
14,116,250 |
112,900,500 |
6.0% |
Intuit |
450,000 |
15,564,740 |
96,538,500 |
5.2% |
SAP ADR |
316,379 |
19,947,795 |
32,802,175 |
1.8% |
49,628,785 |
242,241,175 |
13.0% |
||
Communications Equipment |
||||
Apple |
504,000 |
1,526,905 |
90,004,320 |
4.8% |
Cisco Systems |
1,500,000 |
26,759,130 |
71,805,000 |
3.8% |
28,286,035 |
161,809,320 |
8.6% |
||
Information Services |
||||
Gartner¹ |
180,000 |
6,186,410 |
27,574,200 |
1.4% |
Infrastructure Software |
||||
Oracle |
650,000 |
12,885,855 |
31,694,000 |
1.7% |
Semiconductor Devices |
||||
Qualcomm |
800,000 |
30,482,851 |
46,608,000 |
2.5% |
Xilinx |
600,000 |
14,947,540 |
55,488,000 |
3.0% |
45,430,391 |
102,096,000 |
5.5% |
||
Continued on next page. |
||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
17 |
Amana Growth Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks — 94.3% |
Number of Shares |
Cost |
Market Value |
Percentage of Assets |
|
Technology (continued) |
||||
Semiconductor Manufacturing |
||||
ASML Holding NY |
308,000 |
$10,937,644 |
$52,775,800 |
2.8% |
Taiwan Semiconductor ADR |
1,222,471 |
12,765,781 |
45,952,685 |
2.5% |
23,703,425 |
98,728,485 |
5.3% |
||
Technology Distributors |
||||
SYNNEX |
44,335 |
3,139,140 |
3,579,608 |
0.2% |
169,260,041 |
667,722,788 |
35.7% |
||
|
Total investments |
$483,111,415 |
$1,763,178,204 |
94.3% |
|
|
Other assets (net of liabilities) |
106,657,025 |
5.7% |
||
|
Total net assets |
$1,869,835,229 |
100.0% |
||
|
¹ Non-income producing security ADR: American Depositary Receipt |
||||
18 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund
Statement of Assets and Liabilities |
|
As of November 30, 2018 |
|
Assets |
|
Investments in securities, at value |
$1,763,178,204 |
Cash |
103,622,914 |
Dividends receivable |
4,118,441 |
Receivable for fund shares sold |
765,445 |
Prepaid expenses |
29,282 |
Total Assets |
1,871,714,286 |
Liabilities |
|
Accrued advisory fees |
1,205,225 |
Payable for fund shares redeemed |
501,705 |
Accrued distribution fee |
88,729 |
Accrued retirement plan custodial fees |
56,109 |
Accrued other expenses |
17,710 |
Accrued Chief Compliance Officer expenses |
5,863 |
Accrued transfer agent fees |
3,716 |
Total liabilities |
1,879,057 |
Net Assets |
$1,869,835,229 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$531,644,708 |
Total distributable earnings |
1,338,190,521 |
Net assets applicable to Fund shares outstanding |
$1,869,835,229 |
Net asset value per Investor Share |
AMAGX |
Net assets, at value |
$1,216,099,025 |
Shares outstanding |
31,389,708 |
Net asset value, offering and redemption price per share |
$38.74 |
Net asset value per Institutional Share |
AMIGX |
Net assets, at value |
$653,736,204 |
Shares outstanding |
16,795,913 |
Net asset value, offering and redemption price per share |
$38.92 |
Statement of Operations |
|
Period ended November 30, 2018 |
|
Investment income |
|
Dividend income |
$12,579,545 |
Miscellaneous income |
10,009 |
Total investment income |
12,589,554 |
Expenses |
|
Investment adviser fees |
7,296,029 |
Distribution fees – Investor Shares |
1,499,301 |
Custodian fees |
44,111 |
Printing and postage |
42,868 |
Professional fees |
40,693 |
Retirement plan custodial fees |
|
Investor Shares |
51 |
Institutional Shares |
39,227 |
Chief Compliance Officer expenses |
24,912 |
Filing and registration fees |
20,770 |
Other expenses |
20,669 |
Trustee fees |
18,902 |
Transfer agent fees |
|
Investor Shares |
8,051 |
Institutional Shares |
10,306 |
Total gross expenses |
9,065,890 |
Less custodian fee credits |
(44,111) |
Net expenses |
9,021,779 |
Net investment income |
$3,567,775 |
Net realized gain from investments |
$5,892,921 |
Net increase in unrealized appreciation on investments |
108,291,568 |
Net gain on investments |
$114,184,489 |
Net increase in net assets resulting from operations |
$117,752,264 |
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
19 |
Amana Growth Fund
Statements of Changes in Net Assets |
Period ended November 30, 2018 |
Year ended May 31, 2018 |
Increase in net assets from operations |
||
From operations |
||
Net investment income |
$3,567,775 |
$8,628,264 |
Net realized gain on investment |
5,892,921 |
70,590,913 |
Net increase in unrealized appreciation |
108,291,568 |
175,196,961 |
Net increase in net assets |
117,752,264 |
254,416,138 |
Distributions to shareowners from |
||
Net dividend and distribution to shareholders – Investor Shares |
- |
(113,616,588) |
Net dividend and distribution to shareholders – Institutional Shares |
- |
(53,356,168) |
Total distributions |
- |
(166,972,756)A |
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
93,594,453 |
105,685,229 |
Institutional Shares |
84,086,355 |
124,699,923 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
111,640,320 |
Institutional Shares |
- |
50,075,029 |
Cost of shares redeemed |
||
Investor Shares |
(92,907,063) |
(254,372,394) |
Institutional Shares |
(36,135,927) |
(77,913,676) |
Total capital share transactions |
48,637,818 |
59,814,431 |
Total increase in net assets |
166,390,082 |
147,257,813 |
Net assets |
||
Beginning of period |
1,703,445,147 |
1,556,187,334 |
End of period |
$1,869,835,229 |
$1,703,445,147B |
Shares of the Fund sold and redeemed |
||
Investor Shares (AMAGX) |
||
Number of shares sold |
2,426,141 |
2,920,675 |
Number of shares issued in reinvestment of dividends and distributions |
- |
3,193,373 |
Number of shares redeemed |
(2,430,111) |
(7,067,832) |
Net decrease in number of shares outstanding |
(3,970) |
(953,784) |
Institutional Shares (AMIGX) |
||
Number of shares sold |
2,179,624 |
3,459,330 |
Number of shares issued in reinvestment of dividends and distributions |
- |
1,428,674 |
Number of shares redeemed |
(939,789) |
(2,155,787) |
Net increase in number of shares outstanding |
1,239,835 |
2,732,217 |
A Consists of net investment income distributions of $5,151,503 and $3,497,801 and realized gain distributions of $108,465,085 and $49,858,367 for Investor Shares and Institutional Shares, respectively.
B Includes accumulated net investment income of $4,194,241.
20 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund: Financial Highlights
Investor Shares (AMAGX) |
Period ended |
Year ended May 31, |
||||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
Net asset value at beginning of period |
$36.24 |
$34.42 |
$33.05 |
$35.14 |
$33.22 |
$29.03 |
Income from investment operations |
||||||
Net investment incomeA |
0.06 |
0.16 |
0.17 |
0.18 |
0.13 |
0.12 |
Net gains on securities (both realized and unrealized) |
2.44 |
5.47 |
5.30 |
0.09 |
4.02 |
5.10 |
Total from investment operations |
2.50 |
5.63 |
5.47 |
0.27 |
4.15 |
5.22 |
|
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.17) |
(0.22) |
(0.17) |
(0.13) |
(0.19) |
Distributions (from capital gains) |
- |
(3.64) |
(3.88) |
(2.19) |
(2.10) |
(0.84) |
Total distributions |
- |
(3.81) |
(4.10) |
(2.36) |
(2.23) |
(1.03) |
Net asset value at end of period |
$38.74 |
$36.24 |
$34.42 |
$33.05 |
$35.14 |
$33.22 |
Total ReturnB |
6.90% |
16.76% |
18.38% |
1.06% |
12.66% |
18.12% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$1,216,099 |
$1,137,705 |
$1,113,440 |
$1,286,511 |
$1,879,365 |
$1,890,187 |
|
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
1.08% |
1.09% |
1.10% |
1.09% |
1.08% |
1.10% |
After custodian fee creditsC |
1.08% |
1.09% |
1.09% |
1.09% |
1.08% |
1.09% |
Ratio of net investment income after custodian fee credits to average net assetsC |
0.31% |
0.45% |
0.52% |
0.54% |
0.38% |
0.39% |
Portfolio turnover rateB |
0% |
0% |
0%D |
0% |
0% |
0% |
Institutional Shares (AMIGX) |
Period ended |
Year ended May 31 |
Period endedE |
|||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
May 31, 2014 |
Net asset value at beginning of period |
$36.37 |
$34.53 |
$33.11 |
$35.17 |
$33.23 |
$30.45 |
|
Income from investment operations |
||||||
Net investment incomeA |
0.10 |
0.25 |
0.26 |
0.29 |
0.25 |
0.16 |
Net gains on securities (both realized and unrealized) |
2.45 |
5.49 |
5.31 |
0.07 |
3.97 |
3.70 |
Total from investment operations |
2.55 |
5.74 |
5.57 |
0.36 |
4.22 |
3.86 |
|
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.26) |
(0.27) |
(0.23) |
(0.18) |
(0.24) |
Distributions (from capital gains) |
- |
(3.64) |
(3.88) |
(2.19) |
(2.10) |
(0.84) |
Total distributions |
- |
(3.90) |
(4.15) |
(2.42) |
(2.28) |
(1.08) |
Net asset value at end of period |
$38.92 |
$36.37 |
$34.53 |
$33.11 |
$35.17 |
$33.23 |
Total ReturnB |
7.01% |
17.03% |
18.67% |
1.31% |
12.88% |
12.82% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$653,736 |
$565,740 |
$442,747 |
$457,898 |
$172,281 |
$94,349 |
|
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
0.85% |
0.86% |
0.86% |
0.85% |
0.83% |
0.87% |
After custodian fee creditsC |
0.84% |
0.86% |
0.85% |
0.85% |
0.83% |
0.87% |
Ratio of net investment income after custodian fee credits to average net assetsC |
0.55% |
0.70% |
0.78% |
0.89% |
0.65% |
0.70% |
Portfolio turnover rateB |
0% |
0% |
0%D |
0% |
0% |
0% |
A Calculated using average shares outstanding
BNot annualized for periods of less than one year
C Annualized for periods of less than one year
D Amount is less than 0.5%
E Operations commenced on 09/25/2013
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
21 |
Amana Developing World Fund: Performance Summary |
Average Annual Returns (as of November 30, 2018)
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMDWX)² |
-10.61% |
-2.69% |
n/a |
1.31% |
Institutional Shares (AMIDX)² |
-10.50% |
-2.46% |
n/a |
1.13% |
MSCI Emerging Markets Index |
-9.09% |
1.90% |
9.12% |
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 of the Fund would have fallen to $9,438 versus rising to $13,512 in the Index. Investor Shares are used in this chart because they have a longer track record. 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 stated in the Funds' most recent prospectus, which is dated September 28, 2018, and incorporates results for the fiscal year ended May 31, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. ² The Amana Developing World Fund commenced operations September 28, 2009. Institutional shares of the Amana Developing World Fund began operations September 25, 2013. |
|
Fund Objective
The objective of the Developing World Fund is long-term capital growth, consistent with Islamic principles.
Top 10 Holdings |
Portfolio Diversification |
|||||
% of Total Net Assets |
% of Total Net Assets |
|||||
Tencent Holdings ADR |
5.2% |
Apparel, Footwear & Accessory Design |
6.3% |
█ |
|
|
SM Prime Holdings |
3.9% |
Household Products |
5.8% |
█ |
||
Clicks Group |
3.8% |
Application Software |
5.2% |
█ |
||
VF |
3.5% |
Health Care Facilities |
4.8% |
█ |
||
Hong Kong & China Gas |
3.1% |
Telecom Carriers |
4.7% |
█ |
||
Colgate-Palmolive |
2.9% |
Communications Equipment |
4.2% |
█ |
||
Unilever ADR |
2.9% |
Real Estate Owners & Developers |
3.9% |
█ |
||
Taiwan Semiconductor ADR |
2.8% |
Food & Drug Stores |
3.8% |
█ |
||
Samsonite International |
2.8% |
Utility Networks |
3.4% |
█ |
||
Randgold Resources ADR |
2.8% |
Packaged Food |
3.1% |
█ |
||
Precious Metal Mining |
2.8% |
█ |
||||
Semiconductor Manufacturing |
2.8% |
█ |
||||
Airlines |
2.7% |
█ |
||||
Home Improvement |
2.7% |
█ |
||||
Specialty Chemicals |
2.6% |
█ |
||||
Computer Hardware & Storage |
2.5% |
█ |
||||
Other Industries < 2.5% |
20.6% |
█ |
||||
Other Assets (net of liabilities) |
18.1% |
█ |
||||
22 |
Semi-Annual Report |
November 30, 2018 |
Amana Developing World Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks – 81.9% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
|
Communications |
|||||
Entertainment Content |
|||||
Naspers ADR |
15,600 |
$849,095 |
$639,132 |
South Africa |
2.3% |
Internet Media |
|||||
Baidu ADR² |
3,500 |
241,481 |
658,980 |
China³ |
2.4% |
Telecom Carriers |
|||||
Advanced Info Service |
99,000 |
725,933 |
539,041 |
Thailand |
1.9% |
Telekomunikasi Indonesia ADR |
30,000 |
540,800 |
777,000 |
Indonesia |
2.8% |
1,266,733 |
1,316,041 |
4.7% |
|||
2,357,309 |
2,614,153 |
9.4% |
|||
|
Consumer Discretionary |
|||||
Airlines |
|||||
Bangkok Airways Public Company NVDR |
1,140,000 |
685,317 |
423,795 |
Thailand |
1.5% |
Copa Holdings, Class A |
4,000 |
546,498 |
340,120 |
Panama |
1.2% |
1,231,815 |
763,915 |
2.7% |
|||
Apparel, Footwear & Accessory Design |
|||||
Samsonite International |
259,800 |
773,757 |
786,817 |
Hong Kong³ |
2.8% |
VF |
12,000 |
310,438 |
975,480 |
United States |
3.5% |
1,084,195 |
1,762,297 |
6.3% |
|||
Automobiles |
|||||
Ford Otomotiv Sanayi |
52,500 |
536,206 |
541,247 |
Turkey |
2.0% |
Home Improvement |
|||||
Techtronic Industries |
140,000 |
591,316 |
759,084 |
Hong Kong |
2.7% |
3,443,532 |
3,826,543 |
13.7% |
|||
|
Consumer Staples |
|||||
Food & Drug Stores |
|||||
Clicks Group |
78,000 |
483,452 |
1,056,098 |
South Africa |
3.8% |
Household Products |
|||||
Colgate-Palmolive |
12,600 |
657,268 |
800,352 |
United States |
2.9% |
Unilever ADR |
14,700 |
592,155 |
798,063 |
United Kingdom |
2.9% |
1,249,423 |
1,598,415 |
|
5.8% |
||
Packaged Food |
|||||
Indofood CBP Sukses Makmur |
800,000 |
424,798 |
552,111 |
Indonesia |
2.0% |
M. Dias Branco |
30,000 |
458,337 |
313,499 |
Brazil |
1.1% |
883,135 |
865,610 |
|
3.1% |
||
2,616,010 |
3,520,123 |
12.7% |
|||
Continued on next page. |
|||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
23 |
Amana Developing World Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks — 81.9% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
|
Financials |
|||||
Islamic Banking |
|||||
BIMB Holdings |
531,000 |
$650,958 |
$484,223 |
Malaysia |
1.7% |
Real Estate Owners & Developers |
|||||
SM Prime Holdings |
1,610,000 |
619,395 |
1,067,717 |
Philippines |
3.9% |
1,270,353 |
1,551,940 |
5.6% |
|||
|
Health Care |
|||||
Generic Pharma |
|||||
Aspen Pharmacare Holdings |
28,000 |
448,859 |
297,189 |
South Africa |
1.1% |
Health Care Facilities |
|||||
Bangkok Dusit Medical Services NVDR |
380,000 |
238,695 |
309,655 |
Thailand |
1.1% |
IHH Healthcare |
300,000 |
391,875 |
385,452 |
Malaysia |
1.4% |
KPJ Healthcare |
2,535,992 |
592,100 |
638,555 |
Malaysia |
2.3% |
1,222,670 |
1,333,662 |
|
4.8% |
||
Specialty Pharma |
|||||
Genomma Lab Internacional, Class B² |
273,500 |
615,641 |
167,832 |
Mexico |
0.6% |
2,287,170 |
1,798,683 |
6.5% |
|||
|
Industrials |
|||||
Logistics Services |
|||||
Kerry Logistics Network |
400,000 |
583,456 |
643,483 |
China³ |
2.3% |
Rail Freight |
|||||
Kansas City Southern Industries |
6,500 |
437,054 |
669,825 |
United States |
2.4% |
Transport Support Services |
|||||
Grupo Aeroportuario Sureste ADR |
1,350 |
297,912 |
180,832 |
Mexico |
0.7% |
1,318,422 |
1,494,140 |
5.4% |
|||
|
Materials |
|||||
Precious Metal Mining |
|||||
Randgold Resources ADR |
9,750 |
953,084 |
781,658 |
South Africa |
2.8% |
Specialty Chemicals |
|||||
International Flavors & Fragrances |
5,000 |
706,596 |
708,150 |
United States |
2.6% |
1,659,680 |
1,489,808 |
5.4% |
|||
|
Technology |
|||||
Application Software |
|||||
Tencent Holdings ADR |
36,000 |
693,470 |
1,442,880 |
China |
5.2% |
Communications Equipment |
|||||
Samsung Electronics |
16,500 |
796,235 |
618,274 |
South Korea |
2.2% |
Sercomm |
266,000 |
725,431 |
542,483 |
Taiwan |
2.0% |
1,521,666 |
1,160,757 |
|
4.2% |
||
Continued on next page. |
|||||
24 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund: Schedule of Investments |
As of November 30, 2018 |
Common Stocks — 81.9% |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
|
Technology (continued) |
|||||
Computer Hardware & Storage |
|||||
Advantech |
90,000 |
$639,269 |
$684,715 |
Taiwan |
2.5% |
Electronics Components |
|||||
Silergy |
20,400 |
470,689 |
324,857 |
China³ |
1.2% |
Semiconductor Manufacturing |
|||||
Taiwan Semiconductor ADR |
21,000 |
843,194 |
789,390 |
Taiwan |
2.8% |
4,168,288 |
4,402,599 |
15.9% |
|||
|
Utilities |
|||||
Integrated Utilities |
|||||
AboitizPower |
815,000 |
711,370 |
493,576 |
Philippines |
1.8% |
Power Generation |
|||||
Manila Electric |
80,000 |
517,224 |
587,689 |
Philippines |
2.1% |
Utility Networks |
|||||
Enersis Americas ADR |
10,000 |
116,073 |
86,800 |
Chile |
0.3% |
Hong Kong & China Gas |
421,927 |
661,270 |
851,735 |
China³ |
3.1% |
777,343 |
938,535 |
|
3.4% |
||
2,005,937 |
2,019,800 |
7.3% |
|||
Total Common Stock |
$21,126,701 |
$22,717,789 |
81.9% |
||
Warrants — 0.0%4 |
Number of Shares |
Cost |
Market Value |
Country¹ |
Percentage of Assets |
Financials |
|||||
Islamic Banking |
|||||
BIMB Holdings Warrants² |
80,000 |
$- |
$3,537 |
Malaysia |
0.0%4 |
Total Warrants |
3,537 |
0.0%4 |
|||
Total investments |
$21,126,701 |
$22,721,326 |
81.9% |
||
Other assets (net of liabilities) |
5,015,853 |
18.1% |
|||
Total net assets |
$27,737,179 |
100.0% |
|||
|
¹ Country of domicile unless otherwise indicated ADR: American Depositary Receipt |
|||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
25 |
Amana Developing World Fund: Schedule of Investments |
As of November 30, 2018 |
 |
|
Other assets (net of liabilities) 18.1% |
|
26 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund
Statement of Assets and Liabilities |
|
As of November 30, 2018 |
|
Assets |
|
Investments in securities, at value |
$22,721,326 |
Cash |
5,016,304 |
Dividends receivable |
19,704 |
Prepaid expenses |
9,985 |
Receivable for Fund shares sold |
4,200 |
Total Assets |
27,771,519 |
Liabilities |
|
Accrued advisory fees |
18,637 |
Accrued retirement plan custodial fees |
9,771 |
Accrued audit expenses |
2,024 |
Payable for Fund shares redeemed |
1,252 |
Accrued distribution fee |
1,076 |
Accrued transfer agent fees |
807 |
Accrued other expenses |
692 |
Accrued Chief Compliance Officer expenses |
81 |
Total liabilities |
34,340 |
Net Assets |
$27,737,179 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$31,657,805 |
Total distributable earnings |
(3,920,626) |
Net assets applicable to Fund shares outstanding |
$27,737,179 |
Net asset value per Investor Share |
AMDWX |
Net assets, at value |
$14,776,941 |
Shares outstanding |
1,592,461 |
Net asset value, offering and redemption price per share |
$9.28 |
Net asset value per Institutional Share |
AMIDX |
Net assets, at value |
$12,960,238 |
Shares outstanding |
1,391,640 |
Net asset value, offering and redemption price per share |
$9.31 |
Statement of Operations |
|
Period ended November 30, 2018 |
|
Investment income |
|
Dividend income |
$253,206 |
Miscellaneous income |
106 |
Total investment income |
253,312 |
Expenses |
|
Investment adviser fees |
123,075 |
Filing and registration fees |
24,800 |
Distribution fees – Investor Shares |
18,316 |
Custodian fees |
7,384 |
Retirement plan custodial fees |
|
Investor Shares |
1 |
Institutional Shares |
4,719 |
Professional fees |
3,528 |
Transfer agent fees |
|
Investor Shares |
785 |
Institutional Shares |
1,729 |
Printing and postage |
2,485 |
Other expenses |
864 |
Chief Compliance Officer expenses |
465 |
Trustee fees |
418 |
Total gross expenses |
188,569 |
Less custodian fee credits |
(7,384) |
Net expenses |
181,185 |
Net investment income |
$72,127 |
Net realized loss from investments and foreign currency |
$(237,617) |
Net decrease in unrealized appreciation on investments and foreign currency |
(2,149,738) |
Net loss on investments |
$(2,387,355) |
Net decrease in net assets resulting from operations |
$(2,315,228) |
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
27 |
Amana Developing World Fund
Statements of Changes in Net Assets |
Period ended November 30, 2018 |
Year ended May 31, 2018 |
Increase (Decrease) in net assets from operations |
||
From operations |
||
Net investment income |
$72,127 |
$110,459 |
Net realized gain (loss) on investment |
(237,617) |
129,737 |
Net decrease in unrealized appreciation |
(2,149,738) |
(104,247) |
Net increase (decrease) in net assets |
(2,315,228) |
135,949 |
Distributions to shareowners from |
||
Net dividend and distribution to shareholders – Investor Shares |
- |
(26,968) |
Net dividend and distribution to shareholders – Institutional Shares |
- |
(42,740) |
Total distributions |
- |
(69,708)A |
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
2,780,964 |
4,115,209 |
Institutional Shares |
2,138,871 |
8,339,803 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
- |
26,829 |
Institutional Shares |
- |
42,740 |
Cost of shares redeemed |
||
Investor Shares |
(1,902,177) |
(3,968,970) |
Institutional Shares |
(4,066,275) |
(6,544,079) |
Total capital share transactions |
(1,048,617) |
2,011,532 |
Total increase (decrease) in net assetss |
(3,363,845) |
2,077,773 |
Net assets |
||
Beginning of period |
31,101,024 |
29,023,251 |
End of period |
$27,737,179 |
$31,101,024B |
Shares of the Fund sold and redeemed |
||
Investor Shares (AMDWX) |
||
Number of shares sold |
294,383 |
394,629 |
Number of shares issued in reinvestment of dividends and distributions |
- |
2,507 |
Number of shares redeemed |
(200,661) |
(384,211) |
Net increase in number of shares outstanding |
93,722 |
12,925 |
Institutional Shares (AMIDX) |
||
Number of shares sold |
224,318 |
796,298 |
Number of shares issued in reinvestment of dividends and distributions |
- |
3,983 |
Number of shares redeemed |
(423,301) |
(630,852) |
Net increase (decrease) in number of shares outstanding |
(198,983) |
169,429 |
A Consists of net investment income distributions of $26,968 and $42,740 for Investor Shares and Institutional Shares, respectively. |
||
28 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund: Financial Highlights
Investor Shares (AMDWX) |
Period ended |
Year ended May 31, |
||||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
Net asset value at beginning of period |
$10.05 |
$9.97 |
$9.38 |
$10.29 |
$10.88 |
$10.94 |
|
Income from investment operations |
||||||
Net investment incomeA |
0.02 |
0.03 |
0.04 |
0.03 |
0.05 |
0.01 |
Net gains (losses) on securities (both realized and unrealized) |
(0.79) |
0.07 |
0.57 |
(0.89) |
(0.62) |
(0.03) |
Total from investment operations |
(0.77) |
0.10 |
0.61 |
(0.86) |
(0.57) |
(0.02) |
|
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.02) |
(0.02) |
(0.05) |
(0.02) |
(0.04) |
Total distributions |
- |
(0.02) |
(0.02) |
(0.05) |
(0.02) |
(0.04) |
Net asset value at end of period |
$9.28 |
$10.05 |
$9.97 |
$9.38 |
$10.29 |
$10.88 |
Total returnB |
-7.66% |
0.98% |
6.59% |
(8.32)% |
(5.24)% |
(0.17)% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$14,777 |
$15,067 |
$14,820 |
$17,781 |
$21,051 |
$20,775 |
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
1.39% |
1.37% |
1.35% |
1.51% |
1.54% |
1.59% |
After custodian fee creditsC |
1.34% |
1.32% |
1.30% |
1.45% |
1.48% |
1.54% |
Ratio of net investment income after custodian fee credits to average net assetsC |
0.39% |
0.27% |
0.41% |
0.37% |
0.50% |
0.06% |
Portfolio turnover rateB |
1% |
20% |
10% |
33% |
14% |
11% |
Institutional Shares (AMIDX) |
Period ended |
Year ended May 31, |
Period endedD |
|||
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
2016 |
2015 |
May 31, 2014 |
Net asset value at beginning of period |
$10.08 |
$9.99 |
$9.43 |
$10.33 |
$10.91 |
$10.87 |
|
Income from investment operations |
||||||
Net investment incomeA |
0.03 |
0.05 |
0.06 |
0.06 |
0.09 |
0.05 |
Net gains (losses) on securities (both realized and unrealized) |
(0.80) |
0.07 |
0.57 |
(0.89) |
(0.63) |
0.03 |
Total from investment operations |
(0.77) |
0.12 |
0.63 |
(0.83) |
(0.54) |
0.08 |
Less distributions |
||||||
Dividends (from net investment income) |
- |
(0.03) |
(0.07) |
(0.07) |
(0.04) |
(0.04) |
Total distributions |
- |
(0.03) |
(0.07) |
(0.07) |
(0.04) |
(0.04) |
Net asset value at end of period |
$9.31 |
$10.08 |
$9.99 |
$9.43 |
$10.33 |
$10.91 |
Total ReturnB |
-7.64% |
1.17% |
6.74% |
(8.00)% |
(4.96)% |
0.75% |
Ratios / supplemental data |
||||||
Net assets ($000), end of period |
$12,960 |
$16,034 |
$14,203 |
$7,340 |
$8,442 |
$7,406 |
|
Ratio of expenses to average net assets |
||||||
Before custodian fee creditsC |
1.21% |
1.19% |
1.14% |
1.20% |
1.24% |
1.40% |
After custodian fee creditsC |
1.16% |
1.14% |
1.09% |
1.14% |
1.18% |
1.35% |
Ratio of net investment income after custodian fee credits to average net assetsC |
0.30% |
0.44% |
0.65% |
0.67% |
0.86% |
0.64% |
Portfolio turnover rateB |
1% |
20% |
10% |
33% |
14% |
11% |
A Calculated using average shares outstanding
B Not annualized for periods of less than one year
C Annualized for periods of less than one year
D Operations commenced on 9/25/2013
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
29 |
Amana Participation Fund: Performance Summary |
Average Annual Returns (as of November 30, 2018)
1 Year |
5 Year |
10 Year |
Expense Ratio¹ |
|
Investor Shares (AMAPX)² |
-0.47% |
n/a |
n/a |
0.87% |
Institutional Shares (AMIPX)² |
-0.34% |
n/a |
n/a |
0.62% |
FTSE Sukuk Index |
-0.66% |
3.12% |
6.36% |
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 Institutional Shares of the Fund on September 28, 2015, to an identical amount invested in the FTSE Sukuk Index, a measurement of global Islamic fixed income securities, also known as sukuk. The graph shows that an investment in Institutional Shares of the Fund would have risen to $10,433 versus $10,775 in the Index. Institutional Shares are used in this chart because they represent the larger share class in terms of assets. 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. The FTSE Sukuk Index was formerly known as the Citi Sukuk Index. The London Stock Exchange Group acquired Citigroup Index LLC in August 2017. ¹ By regulation, expense ratios shown in this table are as stated in the Funds' most recent prospectus, which is dated September 28, 2018, and incorporates results for the fiscal year ended May 31, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. ² The Amana Participation Fund commenced operations September 28, 2015. |
|
Fund Objective
The objectives of the Participation Fund are capital preservation and current income, consistent with Islamic principles. Capital preservation is its primary objective.
Top 10 Holdings |
|
% of Total Net Assets |
|
Dubai International Financial Centre Sukuk (4.325% due 11/12/2024) |
4.6% |
Emirates Islamic Bank Sukuk (3.542% due 05/31/2021) |
4.5% |
Dubai International Bank Sukuk (2.921% due 06/03/2020) |
4.5% |
Noor Sukuk (2.788% due 04/28/2020) |
4.5% |
Investment Corporation of Dubai Sukuk (3.508% due 05/21/2020) |
4.5% |
Equate Sukuk Spc (3.944% due 02/21/2024) |
4.5% |
Emirates Madina Group Sukuk (4.564% due 06/18/2024) |
4.5% |
Qatar International Bank Sukuk (2.754% due 10/27/2020) |
4.5% |
SIB Sukuk Co III (3.084% due 09/08/2021) |
4.4% |
DP World Crescent (3.908% due 05/31/2023) |
4.1% |
Portfolio Diversification |
|||
% of Total Net Assets |
|||
Financials |
39.8% |
█ |
|
Foreign Government Sukuks |
22.6% |
█ |
|
Consumer Discretionary |
7.8% |
█ |
|
Utilities |
5.4% |
█ |
|
Materials |
4.5% |
█ |
|
Industrials |
4.1% |
█ |
|
Communications |
3.1% |
█ |
|
Technology |
2.7% |
█ |
|
Energy |
1.9% |
█ |
|
Other Assets (net of liabilities) |
8.1% |
█ |
|
30 |
Semi-Annual Report |
November 30, 2018 |
Amana Participation Fund: Schedule of Investments |
As of November 30, 2018 |
Corporate Sukuk – 69.3% |
Coupon / Maturity |
Face Amount |
Market Value |
Country¹ |
Percentage of Assets |
|
Communications |
|||||
Ooredoo Tamweel² |
3.039% due 12/03/2018 |
$2,000,000 |
$2,000,000 |
Qatar |
3.1% |
2,000,000 |
3.1% |
||||
|
Consumer Discretionary |
|||||
AAl Shindagha² |
3.776% due 11/26/2019 |
2,650,000 |
2,637,267 |
United Arab Emirates |
4.0% |
Majid Al Futtaim² |
4.50% due 11/03/2025 |
2,500,000 |
2,477,100 |
United Arab Emirates |
3.8% |
5,114,367 |
7.8% |
||||
|
Energy |
|||||
Petronas Global³ |
2.707% due 03/18/2020 |
1,250,000 |
1,236,362 |
Malaysia |
1.9% |
1,236,362 |
1.9% |
||||
|
Financials |
|||||
Dubai International Bank² |
2.921% due 06/03/2020 |
3,000,000 |
2,949,858 |
United Arab Emirates |
4.5% |
Dubai International Financial Centre² |
4.325% due 11/12/2024 |
3,000,000 |
2,986,986 |
United Arab Emirates |
4.6% |
Emirates Islamic Bank² |
3.542% due 05/31/2021 |
3,000,000 |
2,965,467 |
United Arab Emirates |
4.5% |
Emirates Madina Group² |
4.564% due 06/18/2024 |
3,000,000 |
2,925,630 |
United Arab Emirates |
4.5% |
Exim Sukuk Malaysia² |
2.874% due 02/19/2019 |
1,500,000 |
1,497,890 |
Malaysia |
2.3% |
Investment Corporation of Dubai² |
3.508% due 05/21/2020 |
2,975,000 |
2,941,552 |
United Arab Emirates |
4.5% |
Noor Sukuk² |
2.788% due 04/28/2020 |
3,000,000 |
2,945,019 |
United Arab Emirates |
4.5% |
Qatar International Bank² |
2.754% due 10/27/2020 |
3,000,000 |
2,918,256 |
Qatar |
4.5% |
SIB Sukuk Co III² |
3.084% due 09/08/2021 |
3,000,000 |
2,908,116 |
United Arab Emirates |
4.4% |
Sukuk Funding No3² |
4.348% due 12/03/2018 |
1,000,000 |
994,420 |
United Arab Emirates |
1.5% |
26,033,194 |
39.8% |
||||
|
Industrials |
|||||
DP World Crescent² |
3.908% due 05/31/2023 |
2,750,000 |
2,702,873 |
United Arab Emirates |
4.1% |
2,702,873 |
4.1% |
||||
|
Materials |
|||||
Equate Sukuk Spc² |
3.944% due 02/21/2024 |
3,000,000 |
2,928,207 |
United Arab Emirates |
4.5% |
2,928,207 |
4.5% |
||||
|
Technology |
|||||
Axiata² |
4.357% due 03/24/2026 |
1,750,000 |
1,731,387 |
Malaysia |
2.7% |
1,731,387 |
2.7% |
||||
|
Utilities |
|||||
Saudi Electric Global³ |
4.00% due 04/08/2024 |
1,500,000 |
1,464,675 |
Saudi Arabia |
2.2% |
TNB Global Ventures Capital² |
3.244% due 10/19/2026 |
2,290,000 |
2,093,303 |
Malaysia |
3.2% |
3,557,978 |
5.4% |
||||
|
Total Corporate Sukuk |
$45,304,368 |
69.3% |
|||
Continued on next page. |
|||||
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
31 |
Amana Participation Fund: Schedule of Investments |
As of November 30, 2018 |
Government Sukuk — 22.6% |
Coupon / Maturity |
Face Amount |
Market Value |
Country¹ |
Percentage of Assets |
|
Foreign Government Sukuk |
|||||
Dubai Department of Finance² |
3.875% due 01/30/2023 |
$2,250,000 |
$2,220,478 |
United Arab Emirates |
3.4% |
Kingdom of Saudi Arabia² |
3.628% due 04/20/2027 |
2,750,000 |
2,628,213 |
Saudi Arabia |
4.0% |
Oman Sovereign² |
4.397% due 06/01/2024 |
2,500,000 |
2,336,622 |
Oman |
3.6% |
Perusahaan Penerbit SBSN III³ |
6.125% due 03/15/2019 |
500,000 |
504,000 |
Indonesia |
0.8% |
Perusahaan Penerbit SBSN² |
4.55% due 03/29/2026 |
1,750,000 |
1,711,675 |
Indonesia |
2.6% |
Perusahaan Penerbit SBSN³ |
4.55% due 03/29/2026 |
250,000 |
244,525 |
Indonesia |
0.4% |
RAK Capital² |
3.094% due 03/31/2025 |
1,500,000 |
1,407,210 |
United Arab Emirates |
2.1% |
Sharjah² |
3.764% due 09/17/2024 |
1,500,000 |
1,471,595 |
United Arab Emirates |
2.3% |
State of Qatar² |
3.241% due 01/18/2023 |
2,250,000 |
2,209,352 |
Qatar |
3.4% |
|
Total Government Sukuk |
14,733,670 |
22.6% |
|||
Total investments |
(Cost $61,836,149) |
$60,038,038 |
91.9% |
||
|
Other assets (net of liabilities) |
5,288,425 |
8.1% |
|||
Total net assets |
$65,326,463 |
100.0% |
|||
|
¹ Country of risk ² Security was purchased pursuant to Regulation S under the Securities Act of 1933 which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At November 30, 2018, the aggregate value of these securities was $56,588,476 representing 86.6% of net assets. ³ Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At November 30, 2018, the net value of these securities was $3,449,562 representing 5.3% of net assets. |
|||||
Sukuk Quality Diversification
% of Total Net Assets |
|||
Rated "AA-" |
3.4% |
█ |
|
Rated "A+" |
8.5% |
█ |
|
Rated "A" |
6.6% |
█ |
|
Rated "A-" |
22.9% |
█ |
|
Rated "BBB+" |
13.6% |
█ |
|
Rated "BBB" |
8.5% |
█ |
|
Rated "BBB-" |
16.5% |
█ |
|
Not rated |
11.9% |
█ |
|
Other assets (net of liabilities) |
8.1% |
█ |
|
|
Credit ratings are the lesser of S&P Global Ratings or Moody's Investors Service. If neither S&P nor Moody's rate a particular security, that security is categorized as not rated (except for US Treasury securities and securities issued or backed by US agencies which inherit the credit rating for the US government). Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and below are lower-rated securities (junk bonds). Ratings apply to the creditworthiness of the issuers of the underlying securities and not the fund or its shares. Ratings may be subject to change. |
|||
32 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Participation Fund
Statement of Assets and Liabilities |
|
As of November 30, 2018 |
|
Assets |
|
Investments in securities, at value |
$60,038,038 |
Cash |
4,323,167 |
Receivable for Fund shares sold |
569,238 |
Dividends and Income |
460,735 |
Prepaid expenses |
18,317 |
Total assets |
65,409,495 |
Liabilities |
|
Payable for Fund shares redeemed |
41,783 |
Accrued advisory fees |
26,513 |
Distributions payable |
7,694 |
Accrued retirement plan custodial fees |
3,135 |
Accrued other expenses |
2,210 |
Accrued distribution fee |
1,479 |
Accrued Chief Compliance Officer expenses |
218 |
Total liabilities |
83,032 |
Net Assets |
$65,326,463 |
Analysis of Net Assets |
|
Paid-in capital (unlimited shares authorized, without par value) |
$67,181,574 |
Total distributable earnings |
(1,855,111) |
Net assets applicable to Fund shares outstanding |
$65,326,463 |
Net asset value per Investor Share |
AMAPX |
Net assets, at value |
$20,286,129 |
Shares outstanding |
2,088,066 |
Net asset value, offering and redemption price per share |
$9.72 |
Net asset value per Institutional Share |
AMIPX |
Net assets, at value |
$45,040,334 |
Shares outstanding |
4,619,854 |
Net asset value, offering and redemption price per share |
$9.75 |
Statement of Operations |
|
Period ended November 30, 2018 |
|
Investment income |
|
Sukuk Income |
$1,046,199 |
Miscellaneous income |
52 |
Total investment income |
1,046,251 |
Expenses |
|
Investment adviser fees |
161,665 |
Distribution fees – Investor Shares |
23,938 |
Filing and registration fees |
20,488 |
Custodian fees |
6,081 |
Professional Fees |
3,545 |
Retirement plan custodial fees |
|
Investor Shares |
24 |
Institutional Shares |
1,856 |
Printing and postage |
1,523 |
Chief Compliance Officer expenses |
851 |
Trustee fees |
686 |
Other expenses |
633 |
Total gross expenses |
221,290 |
Less custodian fee credits |
(6,081) |
Net expenses |
215,209 |
Net investment income |
$831,042 |
Net realized loss from investments |
$(52,159) |
Net increase in unrealized depreciation on investments |
(245,491) |
Net loss on investments |
$(297,650) |
Net increase in net assets resulting from operations |
$533,392 |
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
33 |
Amana Participation Fund
Statements of Changes in Net Assets |
Period ended November 30, 2018 |
Year ended May 31, 2018 |
Increase in net assets from operations |
||
|
From operations |
||
Net investment income |
$831,042 |
$1,188,044 |
Net realized loss on investment |
(52,159) |
(2,029) |
Net increase in unrealized depreciation |
(245,491) |
(1,764,225) |
Net increase (decrease) in net assets |
533,392 |
(578,210) |
Distributions to shareowners from |
||
Net investment income |
||
Investor Shares |
(230,719) |
(316,414) |
Institutional Shares |
(600,323) |
(871,630) |
Total distributions |
(831,042) |
(1,188,044)A |
|
Capital share transactions |
||
Proceeds from the sale of shares |
||
Investor Shares |
5,660,712 |
11,944,335 |
Institutional Shares |
4,592,600 |
27,010,316 |
Value of shares issued in reinvestment of dividends and distributions |
||
Investor Shares |
229,790 |
314,337 |
Institutional Shares |
552,832 |
791,141 |
Early redemption fees retained |
||
Investor Shares |
- |
398 |
Institutional Shares |
- |
884 |
Cost of shares redeemed |
||
Investor Shares |
(3,725,117) |
(5,585,736) |
Institutional Shares |
(4,628,580) |
(7,981,340) |
Total capital share transactions |
2,682,237 |
26,494,335 |
Total increase in net assets |
2,384,587 |
24,728,081 |
Net assets |
||
Beginning of period |
62,941,876 |
38,213,795 |
End of period |
$65,326,463 |
$62,941,876 |
Shares of the Fund sold and redeemed |
||
|
Investor Shares (AMAPX) |
||
Number of shares sold |
579,996 |
1,202,404 |
Number of shares issued in reinvestment of dividends and distributions |
23,545 |
31,650 |
Number of shares redeemed |
(381,585) |
(560,823) |
Net increase in number of shares outstanding |
221,956 |
673,231 |
|
Institutional Shares (AMIPX) |
||
Number of shares sold |
468,372 |
2,697,778 |
Number of shares issued in reinvestment of dividends and distributions |
56,430 |
79,448 |
Number of shares redeemed |
(472,191) |
(800,994) |
Net increase in number of shares outstanding |
52,611 |
1,976,232 |
A Consists of net investment income distributions of $316,414 and $871,630 for Investor Shares and Institutional Shares, respectively.
34 |
Semi-Annual Report |
November 30, 2018 |
The accompanying notes are an integral part of these financial statements. |
Amana Participation Fund: Financial Highlights
Investor Shares (AMAPX) |
Period ended |
Year ended May 31, |
Period endedA |
|
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
May 31, 2016 |
Net asset value at beginning of period |
$9.76 |
$10.07 |
$10.02 |
$10.00 |
|
Income from investment operations |
||||
Net investment incomeB |
0.11 |
0.22 |
0.21 |
0.10 |
Net gain (losses) on securities (both realized and unrealized) |
(0.03) |
(0.31) |
0.07 |
(0.01) |
Total from investment operations |
0.08 |
(0.09) |
0.28 |
0.09 |
|
Less distributions |
||||
Dividends (from net investment income) |
(0.12) |
(0.22) |
(0.22) |
(0.07) |
Distribution (from capital gains) |
- |
- |
(0.01) |
- |
Total distributions |
(0.12) |
(0.22) |
(0.23) |
(0.07) |
Paid-in capital from early redemption feesC |
n/a |
0.00 |
0.00 |
0.00 |
Net asset value at end of period |
$9.72 |
$9.76 |
$10.07 |
$10.02 |
Total ReturnD |
0.80% |
(0.94)% |
2.87% |
0.91% |
Ratios / supplemental data |
||||
Net assets ($000), end of period |
$20,286 |
$18,212 |
$12,014 |
$3,016 |
|
Ratio of expenses to average net assets |
||||
Before custodian fee creditsE |
0.86% |
0.87% |
0.92% |
1.12% |
After custodian fee creditsE |
0.84% |
0.85% |
0.91% |
1.12% |
Ratio of net investment income after custodian fee credits to average net assetsE |
2.40% |
2.18% |
2.14% |
1.53% |
Portfolio turnover rateD |
10% |
7% |
23% |
0% |
Institutional Shares (AMIPX) |
Period ended |
Year ended May 31, |
Period endedA |
|
Selected data per share of outstanding capital stock throughout each period: |
Nov. 30, 2018 |
2018 |
2017 |
May 31, 2016 |
Net asset value at beginning of period |
$9.79 |
$10.11 |
$10.05 |
$10.00 |
Income from investment operations |
||||
Net investment incomeB |
0.13 |
0.24 |
0.24 |
0.07 |
Net gains (losses) on securities (both realized and unrealized) |
(0.04) |
(0.32) |
0.06 |
0.04 |
Total from investment operations |
0.09 |
(0.08) |
0.30 |
0.11 |
Less distributions |
||||
Dividends (from net investment income) |
(0.13) |
(0.24) |
(0.23) |
(0.06) |
Distribution (from capital gains) |
- |
- |
(0.01) |
- |
Total distributions |
(0.13) |
(0.24) |
(0.24) |
(0.06) |
Paid-in capital from early redemption feesC |
n/a |
0.00 |
0.00 |
0.00 |
Net asset value at end of period |
$9.75 |
$9.79 |
$10.11 |
$10.05 |
Total ReturnD |
0.92% |
(0.80)% |
3.09% |
1.10% |
Ratios / supplemental data |
||||
Net assets ($000), end of period |
$45,040 |
$44,729 |
$26,200 |
$12,727 |
Ratio of expenses to average net assets |
||||
Before custodian fee creditsE |
0.61% |
0.62% |
0.68% |
0.72% |
After custodian fee creditsE |
0.59% |
0.60% |
0.67% |
0.72% |
Ratio of net investment income after custodian fee credits to average net assetsE |
2.64% |
2.45% |
2.38% |
0.99% |
Portfolio turnover rateD |
10% |
7% |
23% |
0% |
AOperations commenced on 9/28/2015
B Calculated using average shares outstanding
C Amount is less than $0.01
D Not annualized for periods of less than one year
E Annualized for periods of less than one year
The accompanying notes are an integral part of these financial statements. |
Semi-Annual Report |
November 30, 2018 |
35 |
Notes To Financial Statements
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 Income, Growth, and Developing World Funds are successors to the corresponding series of the Prior Trust. The Trust is registered as an open-end, diversified management 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. Four 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 Income, Growth, and Developing World Funds were first offered September 25, 2013. The Participation Fund (both Investor and Institutional Shares) began operations September 28, 2015. The Participation Fund is a nondiversified fund.
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:
- Distribution fees;
- Retirement plan custodial fees; and
- Any applicable service fees.
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.
Investment risks:
Income, Growth, Developing World, and Participation Funds: The value of the shares of each of the Funds rises and falls as the value of the securities in which the Funds invest goes up and down. The Funds limit the securities they purchase to those consistent with Islamic principles. This limits opportunities and may affect performance. Each of the Funds may invest in securities that are not traded in the United States. Investments in the securities of foreign issuers may involve risks in addition to those normally associated with investments in the securities of US issuers. These risks include currency and market fluctuations, and political or social instability. The risks of foreign investing are generally magnified in the smaller and more volatile securities markets of the developing world.
Growth Fund: The smaller and less seasoned companies that may be in the Growth Fund have a greater risk of price volatility.
Participation Fund: While the Participation Fund does not invest in conventional bonds, risks similar to those of conventional diversified fixed-income funds apply. These include: diversification and concentration risk, liquidity risk, interest rate risk, credit risk, and high-yield risk. The Participation Fund also includes risks specific to investments in Islamic fixed-income instruments. The structural complexity of sukuk, along with the weak infrastructure of the sukuk market, increases risk. As compared to rights of conventional bondholders, holders of sukuk may have limited ability to pursue legal recourse to enforce the terms of the sukuk or to restructure the sukuk in order to seek recovery of principal. Sukuk are also subject to the risk that some Islamic scholars may deem certain sukuk as not meeting Islamic investment principles subsequent to the sukuk being issued.
The Funds may invest substantially in one or more sectors, which can increase volatility and exposure to issues specific to a particular sector or industry.
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.
Sukuk certificates in which the Participation Fund invests are valued based on evaluated prices supplied by an independent pricing service, which include valuations provided by market makers and other participants, provided that there is sufficient market activity on which the pricing service can base such valuations. Where market activity is insufficient for making such determinations, the independent pricing service uses proprietary valuation methodologies and may consider a variety of factors, such as yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, and other factors in order to calculate the security's fair value.
36 |
Semi-Annual Report |
November 30, 2018 |
Notes To Financial Statements (continued)
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.
Share Valuation Inputs as of November 30, 2018 |
||||
Funds |
Level 1 |
Level 2 |
Level 3 |
Total |
Income Fund |
||||
Common Stocks¹ |
$1,326,609,846 |
$- |
$- |
$1,326,609,846 |
Total Assets |
$1,326,609,846 |
$- |
$- |
$1,326,609,846 |
Growth Fund |
||||
Common Stocks¹ |
$1,763,178,204 |
$- |
$- |
$1,763,178,204 |
Total Assets |
$1,763,178,204 |
$- |
$- |
$1,763,178,204 |
Developing World Fund |
||||
Common Stocks |
||||
Communications |
$2,075,112 |
$539,041 |
$- |
$2,614,153 |
Consumer Discretionary |
$1,315,600 |
$2,510,943 |
$- |
$3,826,543 |
Consumer Staples |
$1,598,415 |
$1,921,708 |
$- |
$3,520,123 |
Financials |
$- |
$1,551,940 |
$- |
$1,551,940 |
Health Care |
$- |
$1,798,683 |
$- |
$1,798,683 |
Industrials |
$850,657 |
$643,483 |
$- |
$1,494,140 |
Materials |
$1,489,808 |
$- |
$- |
$1,489,808 |
Technology |
$2,232,270 |
$2,170,329 |
$- |
$4,402,599 |
Utilities |
$86,800 |
$1,933,000 |
$- |
$2,019,800 |
Total Common Stocks |
$9,648,662 |
$13,069,127 |
$- |
$22,717,789 |
Warrants¹ |
$3,537 |
$- |
$- |
$3,537 |
Total Assets |
$9,652,199 |
$13,069,127 |
$- |
$22,721,326 |
Participation Fund |
||||
Corporate Sukuk¹ |
$- |
$45,304,368 |
$- |
$45,304,368 |
Government Sukuk¹ |
$- |
$14,733,670 |
$- |
$14,733,670 |
Total Assets |
$- |
$60,038,038 |
$- |
$60,038,038 |
During the period ended November 30, 2018, no Fund had transfers between Level 1, Level 2, and Level 3. ¹ See the Schedule of Investments for additional details. |
||||
Semi-Annual Report |
November 30, 2018 |
37 |
Notes To Financial Statements (continued)
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.
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 judgment. 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 on page 37 is a summary of the inputs used as of November 30, 2018, 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 a previous fiscal period, 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 Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of November 30, 2018, by risk category are as follows:
Developing World Fund |
||
Statement of Assets and Liabilities Location |
Derivatives not designated as hedging instruments |
Asset Derivatives |
Investments in securities, at value |
Warrants |
$3,537 |
Total |
$3,537 |
|
Statement of Operations Effects
Developing World Fund |
||
Derivatives not designated as hedging instruments |
Realized Gain (Loss) |
Changes in Unrealized Gain |
Warrants |
$- |
$(684) |
Total |
$- |
$(684) |
The average monthly notional amount of warrants during the fiscal period ended November 30, 2018, was $91,661.
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. 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 (2015 – 2017) or expected to be taken in the Funds' 2018 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 12 months.
38 |
Semi-Annual Report |
November 30, 2018 |
Notes To Financial Statements (continued)
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 are as of fiscal year ended May 31, 2018, and have no effect on net assets or NAV per share.
Income Fund |
Growth Fund |
|
Undistributed net income (loss) |
$5,068 |
$- |
Accumulated gains (losses) |
$(5,068) |
$- |
Paid-in capital |
$- |
$- |
Developing World Fund |
Participation Fund |
|
Undistributed net income (loss) |
$(10,339) |
$- |
Accumulated gains (losses) |
$10,339 |
$- |
Paid-in capital |
$- |
$- |
Distributions to shareowners:
For the Amana Participation Fund, dividends to shareowners from net investment income are paid daily and distributed on the last business day of each month. For the Amana Income Fund, Amana Growth Fund, and Amana Developing World Fund, 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.
Foreign taxes:
Withholding taxes on foreign dividends are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country's tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Funds record a reclaim receivable based on a number of factors, including a jurisdiction's legal obligation to pay reclaims as well as payment history and market convention.
Other:
Dividend income is recognized on the ex-dividend date, and sukuk 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.
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 services and facilities required to conduct Trust business. Prior to January 1, 2018, the Amana Growth Fund, Amana Income Fund, and Amana Developing World Fund each paid an advisory and administration 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. Beginning January 1, 2018, the Amana Growth Fund, Amana Income Fund, and Amana Developing World Fund each pay a lower advisory and administration fee of 0.85% on the first $1 billion of a Fund's average daily net assets, 0.75% on the next $1 billion, and 0.65% on assets over $2 billion. The Amana Participation Fund pays an advisory and administration fee of 0.50% annually of the average daily net assets. For the fiscal period ended November 30, 2018, the Funds paid the following advisory fees to Saturna Capital:
Advisory fees |
|
Income Fund |
$5,608,146 |
Growth Fund |
$7,296,029 |
Developing World Fund |
$123,075 |
Participation Fund |
$161,665 |
Certain officers and one trustee of Amana are also officers and directors of the investment adviser.
Saturna Capital also acts as transfer agent for the Trust for which each class of a Fund pays $0.25 per active account per month for each Fund other than the Participation Fund. For the fiscal period ended November 30, 2018,the Funds paid the following transfer agent fees to Saturna Capital:
Transfer agent fees |
|
Income Fund Investor Shares (AMANX) |
$6,331 |
Income Fund Institutional Shares (AMINX) |
$8,115 |
Growth Fund Investor Shares (AMAGX) |
$8,051 |
Growth Fund Institutional Shares (AMIGX) |
$10,306 |
Developing World Fund Investor Shares (AMDWX) |
$785 |
Developing World Fund Institutional Shares (AMIDX) |
$1,729 |
Participation Fund Investor Shares (AMAPX) |
n/a |
Institutional Shares (AMIPX) |
n/a |
Semi-Annual Report |
November 30, 2018 |
39 |
Notes To Financial Statements (continued)
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 daily 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, 2018, the Funds paid the following distribution fees to SBS:
Distribution (12b-1) fees |
|
Income Fund Investor Shares (AMANX) |
$1,113,746 |
Income Fund Institutional Shares (AMINX) |
n/a |
Growth Fund Investor Shares (AMAGX) |
$1,499,301 |
Growth Fund Institutional Shares (AMIGX) |
n/a |
Developing World Fund Investor Shares (AMDWX) |
$18,316 |
Developing World Fund Institutional Shares (AMIDX) |
n/a |
Participation Fund Investor Shares (AMAPX) |
$23,938 |
Participation Fund Institutional Shares (AMIPX) |
n/a |
For the fiscal period ended November 30, 2018, Saturna Capital spent an additional $1,587,393 of its own resources, 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 equity 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, 2018, the Funds incurred the following retirement plan custodial fees to STC:
Retirement plan custodial fees |
|
Income Fund Investor Shares (AMANX) |
$38 |
Income Fund Institutional Shares (AMINX) |
$29,224 |
Growth Fund Investor Shares (AMAGX) |
$51 |
Growth Fund Institutional Shares (AMIGX) |
$39,227 |
Developing World Fund Investor Shares (AMDWX) |
$1 |
Developing World Fund Institutional Shares (AMIDX) |
$4,719 |
Participation Fund Investor Shares (AMAPX) |
$24 |
Participation Fund Institutional Shares (AMIPX) |
$1,856 |
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, 2018, the Funds paid trustee compensation expenses of $27,000, which is included in the $41,552 of total expenses paid for the independent Trustees.
On November 30, 2018, 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) |
0.03% |
Income Fund Institutional Shares (AMINX) |
2.43% |
Growth Fund Investor Shares (AMAGX) |
0.01% |
Growth Fund Institutional Shares (AMIGX) |
1.35% |
Developing World Fund Investor Shares (AMDWX) |
1.46% |
Developing World Fund Institutional Shares (AMIDX) |
17.59% |
Participation Fund Investor Shares (AMAPX) |
0.33% |
Participation Fund Institutional Shares (AMIPX) |
9.07% |
The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who may be partially compensated by the Trust. For the period ended November 30, 2018, the Funds paid the following compensation expenses for the Chief Compliance Officer:
Chief Compliance Officer |
|
Income Fund |
$20,436 |
Growth Fund |
$24,912 |
Developing World Fund |
$465 |
Participation Fund |
$851 |
Note 5 – Distributions to Shareowners
The tax characteristics of distributions paid for the period ended November 30, 2018, and the year ended May 31, 2018, were as follows:
Income Fund |
November 30, 2018 |
May 31, 2018 |
Ordinary income |
$- |
$16,798,544 |
Long-term capital gain¹ |
$- |
$64,192,214 |
Growth Fund |
November 30, 2018 |
May 31, 2018 |
Ordinary income² |
$- |
$8,649,304 |
Long-term capital gain¹ |
$- |
$158,323,452 |
Developing World Fund |
November 30, 2018 |
May 31, 2018 |
Ordinary income² |
$- |
$69,708 |
Participation Fund |
November 30, 2018 |
May 31, 2018 |
Ordinary income |
$831,042 |
$1,188,044 |
¹ Long-Term Capital Gain dividend designated pursuant to Section 852(b)(3) of the Internal Revenue Code.
² By policy, the Growth and Developing World Funds seek to avoid paying income dividends.
40 |
Semi-Annual Report |
November 30, 2018 |
Notes To Financial Statements (continued)
Note 6 – Federal Income Taxes
The cost basis of investments for federal income tax purposes at November 30, 2018, were as follows:
Income Fund |
Growth Fund |
|
Cost of investments |
$520,922,018 |
$483,111,415 |
Gross unrealized appreciation |
$809,083,821 |
$1,280,066,789 |
Gross unrealized depreciation |
$(3,395,993) |
$- |
Net unrealized appreciation (depreciation) |
$805,687,828 |
$1,280,066,789 |
Developing World Fund |
Participation Fund |
|
Cost of investments |
$21,126,701 |
$61,836,149 |
Gross unrealized appreciation |
$4,551,690 |
$296 |
Gross unrealized depreciation |
$(2,957,065) |
$(1,798,408) |
Net unrealized appreciation (depreciation) |
$1,594,625 |
$(1,798,112) |
As of May 31 2018, the components of distributable earnings on a tax basis were as follows:
Income Fund |
|
Undistributed ordinary income |
$76,167 |
Accumulated capital gains |
$44,710,376 |
Tax accumulated earnings |
$44,786,543 |
Unrealized appreciation |
$751,126,111 |
Total accumulated earnings |
$795,912,654 |
Growth Fund |
|
Undistributed ordinary income |
$4,194,241 |
Accumulated capital gains |
$44,468,795 |
Tax accumulated earnings |
$48,663,036 |
Unrealized appreciation |
$1,171,775,221 |
Total accumulated earnings |
$1,220,438,257 |
Developing World Fund |
|
Undistributed ordinary income |
$60,893 |
Tax accumulated earnings |
$60,893 |
Accumulated capital and other losses |
$(5,410,491) |
Unrealized appreciation |
$3,743,950 |
Other unrealized gains |
$250 |
Total accumulated losses |
$(1,605,398) |
Participation Fund |
|
Accumulated capital and other losses |
$(4,840) |
Unrealized depreciation |
$(1,552,621) |
Total accumulated earnings |
$1,557,461 |
At May 31, 2018, the Funds had the following capital loss carryforwards and loss deferrals, subject to regulation. Prior to their expiration, loss carryforwards may be used to offset future net capital gains realized for federal income tax purposes.
Income Fund |
Growth Fund |
Developing World Fund |
Participation Fund |
|
Capital loss carryforwards expiring 2019 |
$- |
$- |
$19,458 |
$- |
Short-term loss carryforwards no expiration |
$- |
$- |
$1,057,675 |
$2,811 |
Long-term loss carryforwards no expiration |
$- |
$- |
$4,276,008 |
$- |
Total capital loss carryforwards |
$- |
$- |
$5,353,141 |
$2,811 |
Post-October loss deferral¹ |
$- |
$- |
$47,143 |
$2,029 |
Late-year loss deferral² |
$- |
$- |
$10,207 |
$- |
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.
² Net ordinary losses incurred after December 31 and within the taxable year are deemed to arise on the first business day of a fund's next taxable year.
Note 7 – Investments
During the fiscal period ended November 30, 2018, the Funds purchased and sold the following amounts of securities.
Purchases |
Sales |
|
Income Fund |
$11,523,752 |
$22,537,681 |
Growth Fund |
$- |
$15,611,775 |
Developing World Fund |
$309,258 |
$1,353,131 |
Participation Fund |
$6,411,606 |
$6,298,750 |
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, 2018, such reductions were as follows:
Custodian Fee Credits |
|
Income Fund |
$32,902 |
Growth Fund |
$44,111 |
Developing World Fund |
$7,384 |
Participation Fund |
$6,081 |
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.
On January 23, 2019, the Amana Mutual Funds changed custodian bank from Bank of New York Mellon to UMB Bank.
There were no other events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.
Semi-Annual Report |
November 30, 2018 |
41 |
Expenses
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. There are no 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, 2018 to November 30, 2018).
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 |
Annualized |
|
Income Fund |
||||
Investor Shares (AMANX), Actual |
$1,000.00 |
$1,059.90 |
$5.66 |
1.10% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.57 |
$5.55 |
1.10% |
Institutional Shares (AMINX), Actual |
$1,000.00 |
$1,061.20 |
$4.45 |
0.86% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.75 |
$4.36 |
0.86% |
Growth Fund |
||||
Investor Shares (AMAGX), Actual |
$1,000.00 |
$1,069.00 |
$5.58 |
1.08% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.68 |
$5.44 |
1.08% |
Institutional Shares (AMIGX), Actual |
$1,000.00 |
$1,070.10 |
$4.36 |
0.84% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.85 |
$4.26 |
0.84% |
Developing World Fund |
||||
Investor Shares (AMDWX), Actual |
$1,000.00 |
$923.40 |
$6.45 |
1.34% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,018.36 |
$6.77 |
1.34% |
Institutional Shares (AMIDX), Actual |
$1,000.00 |
$923.60 |
$5.60 |
1.16% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,019.24 |
$5.88 |
1.16% |
Participation Fund |
||||
Investor Shares (AMAPX), Actual |
$1,000.00 |
$1,008.00 |
$4.21 |
0.84% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,020.87 |
$4.24 |
0.84% |
Institutional Shares (AMIPX), Actual |
$1,000.00 |
$1,009.20 |
$2.99 |
0.59% |
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,022.09 |
$3.01 |
0.59% |
Expenses are equal to annualized expense ratios indicated above (based on the most recent semi-annual period of June 1, 2018, through November 30, 2018), multiplied by the average account value over the period, multiplied by 183/365 to reflect the semi-annual period.
42 |
Semi-Annual Report |
November 30, 2018 |
Renewal of Investment Advisory Contract
The Trustees of the Trust, including those Trustees who are not "interested persons" (as that term is defined in the Investment Company Act of 1940 (the "1940 Act")) of the Trust or Saturna Capital (the "Independent Trustees"), at their June 18, 2018 meeting, considered a new Investment Advisory and Administration Agreement (the "Agreement") with Saturna Capital on behalf of each Fund (Income Fund, Growth Fund, Developing World Fund and Participation Fund) (the "Funds"), in light of the expected exercise by Mrs. Jane Carten, President and Chief Executive Officer of Saturna Capital, of her option to purchase the controlling voting interest in Saturna Capital (the "Option Purchase"), and Saturna Capital's presumed change of control as a result. The Trustees noted that the Option Purchase would be deemed to result in the "assignment" (as defined in the 1940 Act) and automatic termination of each Fund's advisory agreement with Saturna Capital, and that approval of the Agreement by the Trustees and the shareowners of each Fund was necessary to ensure the continuation of services to the Funds without interruption upon the Option Purchase. In deciding to approve the Agreement for each Fund in the context of the Option Purchase, the Trustees considered representations from Saturna Capital that (i) the change of control was not expected to result in any material changes to the nature, quality and extent of services provided to the Funds by Saturna Capital, including the continuity of the Funds' portfolio managers and other personnel responsible for the management operations of the Funds; (ii) the compensation payable to Saturna Capital by each Fund under the new Agreement would not change and is the same as that under each Fund's corresponding current agreement; and (iii) Saturna Capital did not anticipate any material changes to its compliance program or code of ethics in connection with the change of control. The Trustees further considered that the Option Purchase was a positive development in that it would further secure succession planning for Saturna Capital. At a Special Meeting of Shareowners of the Trust held on September 24, 2018, shareowners of each Fund approved the Agreement. At their June 18, 2018 meeting, the Trustees determined to continue to conduct the annual contracts review process for the Funds on its regular schedule, notwithstanding the two-year initial term set forth in the Agreement that had been approved by shareowners.
During their meeting of September 24, 2018, the Trustees discussed the continuance of the Agreement between the Trust, on behalf of each Fund, and Saturna Capital, focusing on the nature, extent, and quality of the services provided by Saturna Capital to the Funds. The Trustees considered that the Funds offer a full range of high-quality investor services, including unique services for Islamic investors. The Trustees discussed Saturna Capital's experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, retirement plans, accounting, marketing, and distribution – all in addition to investment management.
The Trustees took into consideration Saturna Capital's continued avoidance of significant operational and regulatory compliance problems, plus its continued investments in infrastructure, information management systems, personnel, training, compliance, and investor education materials, all designed to meet investor needs with high quality services. They recognized Saturna Capital's efforts to recruit and retain qualified and experienced staff and improve the capital base on which Saturna Capital operates, which the Trustees believe is important to the long-term success of the Funds. They considered Saturna Capital's focus on investors and its efforts to avoid potential conflicts of interest.
The Trustees considered the investment performance of each Fund over time, including comparative information published by Morningstar Inc. ("Morningstar"), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed each Fund's performance relative to the Fund's Morningstar category for the one-, three-, five-, ten-, and fifteen-year periods, as applicable, and the related Morningstar rankings (one through five stars) for the one-, three-, five- and ten-year periods, as applicable, ended as of August 31, 2018. The Trustees also noted the high ratings for sustainability assigned to the Funds by Morningstar. The Trustees noted that the Participation Fund had not received a sustainability rating due to its relatively short operating history. In addition, the Trustees considered each Fund's performance relative to the Fund's category selected by Lipper, Inc. ("Lipper"), a nationally recognized organization that ranks mutual fund performance. The Trustees considered each Fund's performance within its Lipper category, as measured in quintile rankings.
The Trustees found that the longer-term investment performance of the Amana Income Fund and Amana Growth Fund, both in absolute numbers and relative to the Morningstar and Lipper categories, remains strong. The Trustees considered the short- and medium-term performance of Amana Developing World Fund, and the shorter-term performance of Amana Participation Fund, which commenced operations in 2015, each relative to their Morningstar and Lipper categories, and noted that the Funds were managed for the long term. The Trustees noted the risk-averse investment style used by Saturna Capital to manage the Funds and considered other factors, which can affect a Fund's performance relative to the Fund's broader Morningstar and Lipper peer categories. In evaluating such performance data, the Trustees noted that Islamic investment restrictions to which the Funds adhere increase Saturna Capital's research expenses and obligations and impose major constraints on Saturna Capital's selection of the Funds' portfolio investments that impact performance. The Trustees found that Saturna Capital continued to manage the Funds in a manner that is designed to be acceptable to Islamic investors and that the risk-averse approach also is attractive non-Islamic long-term investors.
Recognizing the investment mandate of the Funds, the Trustees also considered the performance of the Funds as compared to a group of other faith-based managed funds with similar assets and investment objectives and strategies. The Trustees considered such comparative performance data, along with the comparative data published by Morningstar and Lipper, as well as each Fund's performance relative to its benchmark, to evaluate each Fund's performance over near-term and long-term time periods, as applicable. When evaluating the Funds' performance record, the Board noted that relative performance comparisons, especially over limited periods of time, is only one of the factors that it deems relevant to its consideration of each Fund's Agreement. The Board noted that, after considering all relevant factors, it may be appropriate to approve the continuation of the Agreement notwithstanding a Fund's underperformance relative to its Morningstar or Lipper peer groups during certain periods.
The Trustees also reviewed the fees and expenses of the Funds and considered the components of each Fund's operating expenses. The Trustees reviewed information regarding how the Funds' expense ratios compared to the average expense ratios for their
Semi-Annual Report |
November 30, 2018 |
43 |
Renewal of Investment Advisory Contract (continued)
respective Morningstar category peer groups. They noted that the expense ratio for the Investor share class of Amana Income Fund is above, and the expense ratio for its Institutional class is lower than, the respective Morningstar category average expense ratios, the expense ratio for the Investor share class of Amana Growth Fund is lower than, and the expense ratio for its Institutional class is above, the respective Morningstar category average expense ratios, and the expense ratios for both share classes of the Amana Developing World Fund and Amana Participation Fund are lower than their respective Morningstar category average expense ratios. In light of the services provided by Saturna Capital, the Trustees found each Fund's advisory fee structure and expense ratios compared to the peer group presented to be fair given the size of each Fund, the services provided, the volume of transaction orders processed by the adviser, and the expenses incurred by the adviser. They noted the significant sponsorship of the Funds by Saturna Capital evidenced, in part, by the amount of fees and expenses paid by Saturna Capital out of its own resources to brokerage platforms and similar unaffiliated intermediaries. The Trustees noted that the expenses imposed by intermediaries are often borne by funds and the Trustees appreciated that Saturna Capital's efforts help make the Funds more widely available and otherwise less expensive had the Funds borne these expenses. The Trustees recognized that the competitive performance record of Amana Income Fund and Amana Growth Fund over the long-term had likely contributed to their asset size, which resulted in lower expense ratios due to rising costs being spread over a larger asset base. The Trustees also took note of the costs borne by Saturna Capital in subsidizing operations of the Amana Developing World Fund and Amana Participation Fund, noting that it had committed significant resources in developing and managing these Funds.
The Trustees reviewed Saturna Capital's financial information and discussed the issue of Saturna Capital's profitability related to its management and administration of the Funds. They discussed the reasonableness of Saturna Capital's profitability with respect to each of the Funds as part of their evaluation of whether the advisory fees bear a reasonable relationship to the mix of services provided by Saturna Capital, including the nature, extent, and quality of such services. The Trustees noted Saturna Capital's decades of dedicated service provided to Amana Mutual Funds Trust and its shareowners.
The Trustees considered the extent to which advisory fees paid to Saturna Capital reflect economies of scale. The Trustees noted that as the Funds have grown, Saturna Capital agreed to include breakpoints within the advisory fee structures and agreed that any changes to the breakpoint schedule would require the approval of the Trustees. The Trustees noted that the Amana Participation Fund's advisory fee structure does not include breakpoints. The Trustees considered the fact that fee breakpoints lower the operating expenses and expense ratios of the Funds as assets grow and demonstrate the benefits of economies of scale are being shared with shareowners. The Trustees also noted the successful introduction of lower-cost Institutional shares and Saturna Capital's ongoing efforts to make the Institutional shares widely available without increasing operating expenses.
The Trustees considered and compared the fees charged by Saturna Capital to other types of advisory accounts for which Saturna Capital serves as an investment adviser, including non-mutual fund advisory clients and individual advisory clients. The Trustees noted the significant differences between the full range of services Saturna Capital provides to the Funds, including investment advisory services, transfer agency services, administration and other services, as compared to the investment advisory services provided to the other advisory accounts. The Trustees also considered how the various services provided to those other accounts, which include Saturna Capital's investment management, research, and customer service operations performed for those accounts, may benefit the Funds.
The Trustees considered potential benefits to Saturna Capital to its other businesses from acting as investment adviser for the Funds, but also noted that Saturna Capital's other business lines also potentially benefit the Funds. The Trustees also noted that there were no soft dollar arrangements with respect to trading in the Funds' portfolios and that Saturna Capital's affiliated broker, Saturna Brokerage Services, voluntarily waives brokerage commissions for executing Fund portfolio transactions, resulting in lower transaction costs for the Funds.
The Trustees concluded that the fees paid by the Funds to Saturna Capital were, from an arm's-length bargaining perspective, reasonable and in the best interest of the Funds and their shareowners in light of the services provided, comparative performance, expense and advisory fee information, costs of services provided, profits to be realized, and benefits derived or to be derived by Saturna Capital from its relationship with the Funds. Following this discussion, the Trustees unanimously agreed to renew the Agreement between Saturna Capital and Amana Growth Fund, Amana Income Fund, Amana Developing World Fund, and Amana Participation Fund.
44 |
Semi-Annual Report |
November 30, 2018 |
Results of Shareowner Meeting
On September 24, 2018, shareowners of the Amana Mutual Funds Trust convened a Special Meeting. The meeting record date was July 27, 2018, when 83,123,425 shares were outstanding in the four Amana Mutual Funds.
At the meeting, one proprosal to approve a proposed new advisory agreement was considered and approved. The following shares were voted at the meeting:
Amana Income Fund |
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| Outstanding Shares | For | Against | Abstain |
| 26,904,209 | 11,766,824 | 242,484 | 948,377 |
Amana Growth Fund |
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| Outstanding Shares | For | Against | Abstain |
| 46,557,524 | 18,269,403 | 321,356 | 1,544,328 |
Amana Developing World Fund |
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| Outstanding Shares | For | Against | Abstain |
| 3,017,056 | 1,633,984 | 9,549 | 107,606 |
Amana Participation Fund |
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| Outstanding Shares | For | Against | Abstain |
| 6,644,636 | 4,596,929 | 10,313 | 58,625 |
Semi-Annual Report |
November 30, 2018 |
45 |
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.
46 |
Semi-Annual Report |
November 30, 2018 |
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.
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, shareowner 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, 2018 |
47 |
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. |
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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. (graphic omitted) Saturna Capital |
Investment Adviser, |
Saturna Capital Corporation |
Custodian |
Bank of New York Mellon |
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Independent Registered |
Tait, Weller & Baker LLP |
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Legal Counsel |
K & L Gates LLP |
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♻ This report is printed on paper with a minimum of 30% post-consumer fiber using soy-based inks. It is 100% recyclable. |
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Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 11. Controls and Procedures
(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. OnDecember 4, 2018, 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.
Item 12. Exhibits
Exhibits included with this filing:
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AMANA MUTUAL FUNDS TRUST
/s/ Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 29, 2019
Date
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:
/s/ Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 29, 2019
Date
By:
/s/ Christopher Fankhauser, Treasurer
Signature and Title
Christopher Fankhauser, Treasurer
Printed name and Title
January 29, 2019
Date
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