Proactive reporter Steve Darling interviews Saturna's Scott Klimo on Islamic investing
November 3, 2023 – Scott Klimo, chief investment officer and portfolio manager at Saturna Capital, was interviewed by host Steve Darling for the news site Proactive Investors.
Klimo and Darling discussed Saturna Capital's investment philosophy and expertise in Islamic finance, the Islamic Global Equity ETF, and what "Islamic-compliant" means to investors. "Our largest single prohibition is on excessive debt," said Klimo. "So, our companies are very strongly cash-generative, (they have) very strong balance sheets, and we believe that brings a level of stability to the portfolio."
Darling asked how the Islamic Global Equity ETF has weathered tough times in the market. Klimo said that the Strategy provided attractive downside protection. The Strategy seeks companies with lower debt levels, so when interest rates rise, "it's almost a non-event. They don't have to worry about servicing their debt, they don't have to worry about missing investment opportunities because their balance sheets might be too leveraged and they can't take on the additional debt. So we feel that this sort of environment is typically one that is favorable for the Strategy in terms of its relative performance against other strategies."
Scott Klimo, CFA® is the chief investment officer of Saturna Capital. He is the portfolio manager for Amana Growth Fund and Sextant Growth Fund and the deputy portfolio manager Amana Income Fund, Amana Developing World Fund, and Saturna Sustainable Equity Fund. He joined Saturna Capital in May of 2012.
About Saturna Capital Corporation
Active Investing to Reflect Your Values
Saturna Capital Corporation, established in 1989 in Bellingham, Washington, USA, is a private, employee-owned investment adviser with US$6.8 billion in assets under management, providing investment advisory services to mutual funds, institutions, businesses, individuals, and endowments. Saturna Capital is adviser to the Amana Mutual Funds Trust, the oldest and largest family of funds in the US that follow principles of Islamic finance. Saturna Capital is also adviser to the US-based Sextant Mutual Funds and Saturna Sustainable Funds.
For more information about Saturna Capital, visit www.saturna.com.
About the CFA Credential
The Chartered Financial Analyst (CFA) charter is a globally respected, graduate-level investment credential awarded by CFA Institute — the largest global association of investment professionals. There are currently more than 160,000 CFA charterholders working in 164 countries and regions. To earn the CFA charter, candidates must: 1) pass three sequential, six-hour examinations; 2) have at least four years of qualified professional investment experience; 3) join CFA Institute as members; and 4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct. For more information visit www.cfainstitute.org.