Account Relationships
Saturna Capital advises a variety of accounts divided between Investment Management Accounts for individuals, families, trusts, estates, corporations, retirement plans and Pooled Investment Funds (mutual funds and private partnerships). Each Investment Management Account is assigned a primary account manager, responsible for the client's portfolio. Client reviews include assets, income, tax situation, family needs, estate planning, and risk preferences.
When advising families, we regularly advise on many aspects of the family's financial planning because the assets often include retirement plans, trusts, real estate, and business interests, all of which are involved in preparing an appropriate investment plan.
The result of our analysis is a written statement of investment objectives that becomes part of the client's advisory contract. All accounts are reviewed on a continuing basis. Financial review meetings are held as desired by clients.
We believe that the appropriate method of measuring performance is to measure the return relative to the level of risk assumed in producing that return. Simply measuring a raw return can produce a false or incomplete picture. A record of high returns in some markets with steep declines in others may be more indicative of a willingness to take risk than of superior investment skills. Therefore, we believe the appropriate method is to determine any additional return over that which might have been expected for a given amount of risk assumed.
To illustrate investment results, Saturna's mutual fund results are publicly available. When making comparisons to other investments, remember that mutual fund performance results are always what the investor receives, after deduction of management fees and all expenses. Results can also reflect certain income tax assumptions.
Saturna manages accounts under three basic fee structures: fee based solely on assets, fee based both on assets and performance, and fee based solely on performance. The fee rates vary as well. Generally, you will qualify for only one structure, which may not be the most advantageous in all circumstances.
As of September 30, 2009, Saturna had sixty-nine discretionary client accounts, including nine mutual funds. Total fee-paying assets exceeded $2.3 billion.
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