Our Investment Approach
Preserve capital and provide value.
Our funds follow value-investing strategies, seeking to deliver low-debt, conservative growth over the long term. Throughout our 35+ years of operation, we have discovered a strong alignment between performance metrics and ethical metrics, enabling many to set the stage for their financial freedom without having to compromise their values.
Mutual Funds You Can Trust
Strategically
Our funds are ideal for investors seeking low-risk, value-driven opportunities. We aim to hold value investments long term, which reduces the amount of trades we make, and in turn reduces how much our investors lose to fees and taxes. With a turnover rate that rarely exceeds 20% annually, we take a stable approach in achieving stable performance.
Ethically
Superior ethical standards are a mainstay of Saturna Capital. Over the past 30 years, we have consistently provided clients with quality investment products that align with their values and ours. We believe that companies with effective corporate responsibility and sustainability policies are better positioned to avoid crises that could lead to reputational damage, higher costs, lost production, and fraudulent operations.
Our Process
At Saturna Capital, we see investing as a long-term business partnership. That is why we choose companies that demonstrate integrity, superior ethical standards, and strong financial performance.
Saturna's research team conducts comprehensive due diligence, examining every aspect of a firm's operations. As we research potential investment candidates, we seek to identify issuers that meet our strict criteria for both financial performance and business practices.
We prioritize companies that exhibit:
- Integrity and superior ethical standards
- Strong free cash flows
- Attractive growth rates
- Increasing dividends
- Low price volatility
- Effective corporate responsibility policies
- Management with a meaningful stake in the company’s performance
Initial Screening
Rigorous Initial Screening for Quality Investments
The goal of Saturna Capital’s initial screening process is to identify potential investment candidates and exclude companies that do not meet our stringent standards. We screen 5,000+ global securities monthly. Of those, roughly half are rated highly enough to move onto the next stage of consideration.
5,000 global stocks | ||
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Quantitative (Islamic) | ||
Business Sector Gambling, Alcohol, Tobacco, Pornography, Weapons, Pork, Fossil Fuel Extraction | Financial Screens > 5% revenue from haram sources
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Quantitative (Sustainable) | ||
Environmental Attributes Carbon Disclosure, Resource Efficiency, Fossil Fuel Extraction | Social Attributes Employee relations, Business Ethics & Products | Governance Attributes Board Effecitiveness, Agency Conflicts, Senior Management Compensation |
~ 2150 pass Islamic Screens / ~ 1,100 pass Sustainable Screens | ||
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Qualitative | ||
Fundamental Attributes Competitive Position, Growth Markets, Strong Management | Global Sector Analysis Review Analysis in US & Malaysia | Saturna Stock Qualification Detailed Fundamental Analysis |
Peer Review | ||
Analyst Rating | ||
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Recommended List: 325 Securities | ||
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Maintenance Research Industry & Company Risk Monitoring | ||
Further Screening
In-Depth Fundamental Analysis
Once potential investments are identified, our analysts conduct thorough reviews at both the industry and company levels. We delve deep into the fundamentals to narrow down our pool of candidates using both negative and positive screening criteria defined by our investing principles.
Our approach combines a quantitative scoring process with qualitative analysis and active management, ensuring a comprehensive assessment of each issuer.
Performance Criteria
To reach the goals of each of our funds, we seek out companies whose business practices indicate:
- Transparency
- Management stability and diversity
- Low debt
- Strong balance sheets
- High-quality operations
- Long-term focus
Nearly all of Saturna's strategies have sustainability as a key aspect of analysis. Our investment approach has always driven us to seek out sustainable and responsible companies. The reason is simple: at Saturna Capital, we view sustainability factors as essential to identifying investment opportunities that contribute to high-quality portfolios.
We believe that companies that proactively manage business risks relating to sustainability issues tend to make better contributions to the global economy, are more resilient, and have favorable performance over time.
Reduced Risk Exposure
Reduced Risk Exposure
Sustainability factors can reveal risks overlooked by traditional analysis, leading to more stable investments. Companies with strong sustainability practices often face fewer fines, scandals, and performance risks.
Long-term Value
Long-term Value
Sustainable investing is about creating lasting value. Companies that prioritize sustainability factors are better positioned for long-term success, benefiting our investors with more stable returns.
Alignment with Global Goals
Alignment with Global Goals
Our sustainable investing criteria align with the Global Goals for Sustainable Development (SDGs). This ensures our investments contribute to broader societal and environmental objectives.
Positive Impact
Positive Impact
Investors can be confident that their money is supporting companies that make a positive difference — results that uplift their personal lives and the global community.