Please read this important information before you start investing. Should you need further assistance, our represtatives are available to answer your questions.

Understanding Your Brokerage Account

A separate account.

Brokerage assets are held in an account with Saturna Brokerage Services, through our clearing agent, Pershing LLC (New York & Jersey City). Saturna Capital affiliated mutual fund asset records are maintained directly by the transfer agent (Saturna Capital) in Bellingham. Accounts holding both brokerage assets and affiliated mutual funds are linked through a common registration (name & address information).

The money market link.

Your Saturna Brokerage account is linked to your designated money market settlement account. Money market settlement accounts allow you to earn income on account balances until you are ready to reinvest. Accounts wishing to avoid interest bearing instruments may opt to hold cash rather than invest in a money market fund.

Option accounts.

Option trading offers experienced investors additional possibilities to earn extra income or capture the movement of the entire market. Options are versatile and can be as conservative or speculative as your investing strategy dictates. Please ask for the free booklet, "Characteristics and Risks of Standardized Options," which outlines the purposes and risks of option transactions. Options trading is not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.

Margin accounts.

Margin accounts provide experienced investors who wish to borrow against the value of their securities, sell short, or hedge, the opportunity to earn extra income or capture the movement of the market. Margin accounts are subject to interest on outstanding balances. Please see the Margin Account Agreement for details.

Margin accounts should be considered higher risk than non-leveraged accounts. The use of leverage may accelerate the velocity of potential losses.

Investment pricing.

Market orders are executed promptly at the best available market price. Limit orders allow you to set conditions for the execution of your orders. Mutual fund orders are priced at the next available net asset value.

Trade settlement.

Stock settlements occur on the third business day after the trade date. Settlement for other types of security trades varies.

Availability of cash proceeds.

Cash proceeds from stock sales are available on the third business day after the trade date. This availability varies for sales involving other security types. Also, brokers and mutual funds may delay the availability of sale proceeds for a variety of reasons (for example, the security being sold isn't held in the seller's account or the security isn't in good order). The chart below lists various security types, their normal settlement schedule, and the date sales proceeds are usually swept to your money market fund settlement account.

Trade Settlement and Availability of Proceeds
Security Type	Settlement	Availability of Proceeds
Domestic stocks and corporate and municipal bonds	Third business day	Third business day
Listed options	First business day	First business day
Treasurys on the secondary market	First business day	Second business day
Certificates of deposit on the secondary market	Third business day	Third business day
Non-Saturna mutual funds	First business day	First business day after settlement
Saturna Capital Mutual Funds	First business day	First business day

Settlement policies.

Your Saturna Brokerage transactions involve the movement, or "sweep," of assets between your brokerage account and linked money market fund settlement account. It is critical that you have assets in the right account at the right time to prevent rejected orders and account restrictions. Please review the following policies before you trade.

Sweep of funds for purchases.

The amount required for settlement, plus any commission or purchase fee, is redeemed from your core money market fund on the settlement date and continues to earn interest up to the last business day before settlement. Accounts opting out of money market fund sweeps pay settlement from cash balances.

Payment for purchases.

You must have sufficient assets¹ available in your designated money market fund to cover a trade. If you place an order online and your account’s available funds are not sufficient for settlement, the order could be rejected. If for some reason sufficient funds are not available in your account on the trade settlement date (for example, you redeem assets after placing your trade or fail to fulfill payment arrangements), you may incur interest charges, and we may place restrictions on your account.

If you plan to pay for a purchase using assets in a Saturna Capital mutual fund, you must initiate the exchange into your settlement account by 4 PM, Eastern time, on the business day before settlement. Saturna Brokerage is not authorized to initiate an exchange on your behalf.

Make checks payable to "Pershing" and mail to:

Saturna Brokerage Services, Inc.
P.O. Box N
Bellingham WA 98227

We may reject investments for any reason, such as anti-money laundering regulations which limit acceptance of third-party checks and money orders.

Availability of sale proceeds.

Net sale proceeds are swept to your money market fund on the settlement date. In many cases, you can use sale proceeds for a new security purchase before they become available in your core money market fund. Check with a Saturna Brokerage representative to make sure your proceeds are available for a specific purchase.

Requesting sale proceeds.

On the settlement date you can request a check to be generated, or funds can be moved via Electronic Funds Transfer ("EFT") to your bank account. If you wish to utilize EFT, we strongly encourage you to establish the service when you open your account (see Electronic Funds Transfer for more details about EFT).

¹ For market orders, you should consider a security's price volatility when determining whether you will have sufficient assets to pay for your purchase.