Barron's - These 5 Dividend Funds Offer the Flexibility to Weather the Pandemic

Monem Salam MBA Executive Vice President and Portfolio Manager, Saturna Capital

July 2, 2020 – Barron’s names Amana Income among five US dividend-focused, actively managed funds that “have held up reasonably well during the coronavirus pandemic” in the article “These 5 Dividend Funds Offer the Flexibility to Weather the Pandemic” by Lawrence Strauss.

Strauss sought to identify dividend-focused funds that have performed well relative to their peers despite fiscal obstacles companies face in paying dividends. He notes those obstacles include “payout cuts and suspensions as efforts to fight the pandemic have weighed on cash flow in many sectors.”

Strauss found that Amana Income and a handful of other actively managed funds benefited from investment flexibility to straddle growth and income categories. Unlike passive investments, such as exchange traded funds (ETFs) that mimic an index, actively managed funds have the “ability to buy stocks that aren’t linked to an index,” he said.

Strauss concluded, “Together, the solid relative performance of these funds shows that, in the right hands, actively manage dividend funds can add value in volatile markets.”

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Average Annual Total Returns

As of June 30, 2020 Ticker 1 Year 3 Year 5 Year 10 Year Year-to-Date Expense Ratio1
Amana Income Investor Shares AMANX 7.78% 8.68% 8.48% 11.09% -2.86% 1.06%
Amana Income Institutional Shares AMINX 7.95% 8.91% 8.73% n/a -2.80% 0.82%
S&P 500   7.51% 8.93% 10.72% 13.98% -3.08% n/a
Morningstar "Large Blend" Category   3.74% 8.15% 8.35% 12.22% -5.48% n/a

1 Expense ratios shown are as stated in the Fund's most recent prospectus dated September 27, 2019.

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Performance data quoted represents past performance which is no guarantee of future results. 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. Current performance may be higher or lower than performance data quoted. Standardized returns current to the most recent month-end can be obtained by visiting our Month-End Returns Page or by calling toll free 1-800-728-8762.

The Amana Income Fund limits the securities it purchases to those consistent with Islamic and sustainable principles. This limits opportunities and may affect performance. There is no guarantee that the Fund’s strategy of actively selecting dividend-paying equities will protect against losses in a declining market.

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