Amana Developing World Fund
Overview
Investment Style
The Amana Developing World Fund actively seeks issuers that demonstrate sustainable financial characteristics as well as a commitment to identifying and managing environmental, social, and governance-related risks.
- ESG factors considered include resource efficiency, community and labor relations, board composition, and business ethics
- Characteristics of financial sustainability include management strength, low debt, and strong balance sheets
- Screens exclude security issuers primarily engaged in higher ESG risk businesses; no alcohol, tobacco, pornography, weapons, gambling, or fossil fuel extraction
- Investments are made in accordance with Islamic principles
- Diversified across countries of the developing world, currencies, and industries
- Targeted to investors seeking value and diversification beyond developed markets
- Global scope, with focus on 34 emerging markets
Investment Objective
Long-term capital growth, consistent with Islamic principles.
Principal Investment Strategies
Under normal circumstances, the Developing World Fund invests at least 80% of total net assets in common stocks of companies with significant exposure (50% or more of production assets, or revenues) to countries with developing economies and/or markets. Investment decisions are made in accordance with Islamic principles. Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are alcohol, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations.
The Developing World Fund does not make any investments that pay interest. Islamic principles discourage speculation, and the Funds tend to hold investments for several years.
The Developing World Fund diversifies its investments across the industries, companies, and countries of the developing world, and principally follows a large-cap value investment style. The Fund seeks companies demonstrating both Islamic and sustainable characteristics. The Fund's adviser considers issuers with sustainable characteristics to be those issuers that are more established, consistently profitable, and financially strong, and with robust policies in the areas of the environment, social responsibility, and corporate governance ("ESG"). The Fund's adviser employs a sustainable rating system based on its own, as well as third-party, data to identify issuers believed to present low risks in ESG. The Fund's adviser also uses negative screening to exclude security issuers primarily engaged in higher ESG risk businesses such as alcohol, tobacco, pornography, weapons, gambling, and fossil fuel extraction.
In determining whether a country is part of the developing world, the Fund's adviser (Saturna Capital Corporation) will consider such factors as the country's per capita gross domestic product, the percentage of the country's economy that is industrialized, market capitalization as a percentage of gross domestic product, the overall regulatory environment, and limits on foreign ownership and restrictions on repatriation of initial capital or income.
Through reference to data provided by various globally recognized organizations such as the International Monetary Fund, The World Bank, and the Organization for Economic Cooperation and Development, the adviser maintains a list of countries it considers to have developing economies and/or markets. The list, which changes over time, currently includes: Argentina, Bahrain, Brazil, Chile, China, Colombia, Croatia, Czech Republic, Egypt, Ecuador, Hungary, India, Indonesia, Jordan, Kuwait, Malaysia, Malta, Mexico, Oman, Panama, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, Slovenia, South Africa, South Korea, Taiwan, Thailand, Turkey, Vietnam, and United Arab Emirates.
By allowing investments in companies headquartered in more advanced economies yet having the majority of production assets or revenues in the developing world, the Developing World Fund seeks to reduce its foreign investing risk.
Portfolio Managers
Portfolio Manager since 2020
Deputy Portfolio Manager since 2020
Deputy Portfolio Manager since 2020
Performance
Short Term Performance
| As of April 30, 2023 | Ticker | 3 Month | 6 Month | YTD | |||
|---|---|---|---|---|---|---|---|
| Amana Developing World Investor Shares | AMDWX | -1.76% | 12.78% | 5.02% | |||
| Amana Developing World Institutional Shares | AMIDX | -1.76% | 12.87% | 5.10% | |||
| MSCI Emerging Markets | -4.74% | 16.36% | 2.78% | ||||
Average Annual Total Returns
| Month-end, as of April 30, 2023 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amana Developing World Investor Shares | AMDWX | -0.50% | 8.47% | 3.05% | 1.04% | 1.21% | 1.03% | ||||
| Amana Developing World Institutional Shares | AMIDX | -0.28% | 8.69% | 3.24% | n/a | 0.99% | 1.25% | ||||
| MSCI Emerging Markets | -6.51% | 4.33% | -1.05% | 1.80% | n/a | n/a | |||||
| Quarter-end, as of March 31, 2023 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amana Developing World Investor Shares | AMDWX | -4.14% | 11.37% | 3.16% | 1.30% | 1.21% | 0.97% | ||||
| Amana Developing World Institutional Shares | AMIDX | -3.85% | 11.66% | 3.36% | n/a | 0.99% | 1.18% | ||||
| MSCI Emerging Markets | -10.70% | 7.83% | -0.88% | 2.02% | n/a | n/a | |||||
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 Fund cannot guarantee that its investment objective will be met. Securities of the Fund are offered and sold only through the prospectus or summary prospectus.
¹ A Fund's 30-Day Yield, sometimes referred to as "standardized yield" or "SEC yield,” is expressed as an annual percentage rate using a method of calculation adopted by the Securities and Exchange Commission (SEC). The 30-Day Yield provides an estimate of a Fund's investment income rate, but may not equal the actual income distribution rate.
² Expense ratios shown are as stated in the Fund's most recent prospectus or summary prospectus dated March 30, 2022.
Growth of $10,000
This chart illustrates the performance of a hypothetical $10,000 invested at the beginning of the period and redeemed at the end of the period, and assumes reinvestment of all dividends and capital gains.
The MSCI Emerging Markets Index, produced by Morgan Stanley Capital International, measures equity market performance in over 20 emerging market countries.
Distributions
| Record Date | Ex, Pay and Reinvest Date |
Ordinary Income |
Qualified Income |
Short-Term Capital Gains |
Long-Term Capital Gains |
Total Distributions (per share) |
|---|---|---|---|---|---|---|
| Investor Shares (AMDWX) | ||||||
| 12/14/2022 | 12/15/2022 | $0.08400 | $0.00 | $0.00 | $0.03090 | $0.11490 |
| 12/15/2021 | 12/16/2021 | $0.09400 | $0.06500 | $0.00 | $0.00 | $0.15900 |
| 12/18/2019 | 12/19/2019 | $0.00 | $0.03850 | $0.00 | $0.00 | $0.03850 |
| Institutional Shares (AMIDX) | ||||||
| 12/14/2022 | 12/15/2022 | $0.10800 | $0.00 | $0.00 | $0.03090 | $0.13890 |
| 12/15/2021 | 12/16/2021 | $0.12300 | $0.08500 | $0.00 | $0.00 | $0.20800 |
| 12/18/2019 | 12/19/2019 | $0.00 | $0.05760 | $0.00 | $0.00 | $0.05760 |
The Amana Developing World Fund intends to distribute its net investment income and net realized capital gains, if any, to its shareowners. Distributions from net capital gains are paid at the end of December and May; income dividends are paid at the end of December — as a result of its investment strategy, the Developing World Fund may not pay income dividends.
Dividends paid by the Fund with respect to each class of shares are calculated in the same manner and at the same time.
Both dividends and capital gain distributions are paid in additional full and fractional shares of the share class owned. At your option, you may receive dividends and/or capital gain distributions in cash. You are notified of each dividend and capital gain distribution when paid. Returned dividend payments will be automatically reinvested into your account and invested in additional shares of the Fund; future dividends in such accounts will continue to be reinvested until the shareowner is located or the account is closed.
The Amana Developing World Fund Investor Shares (AMDWX) began operations September 28, 2009 and Institutional Shares began operations September 25, 2013. The Fund's entire distribution history is listed above.
Regulations regarding distributions can be complex, and there are several methods for managing your tax liability. Please consult a tax advisor about your particular circumstances. You also may obtain helpful information by calling the Internal Revenue Service at 1-800-829-1040 or visiting www.irs.gov.
If applicable, distribution information will appear on Form 1099-DIV, typically sent in late January. For more information on tax documentation, please visit our Tax Documentation page.
The Fund pays per-share distributions to shareowners invested on the Record Date. On the Payable Date, the fund's share price is reduced by the amount of its distribution.
Fees & Minimums
The following tables describe the fees and expenses mutual fund shareowners may pay. There are no shareowner fees (fees paid directly from an investment). The Fund imposes no sales charge (load) on purchases or reinvested dividends, or any deferred sales charge (load) upon redemption. There are no exchange fees or account fees. Investments in mutual funds are subject to ongoing expenses. Saturna endeavors to keep these fees low. We encourage you to compare the following fees with similar fees of other no-load mutual funds:
Shareowner Fees (fees paid directly from your investment)
None.
| Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||
| Investor Shares (AMDWX) | Institutional Shares (AMIDX) | |
| Management Fees | 0.80% | 0.80% |
| Distribution (12b-1) Fees | 0.25% | None |
| Other Expenses | 0.16% | 0.19% |
| Total Annual Fund Operating Expenses | 1.21% | 0.99% |
As stated in the Fund's most recent Prospectus dated September 30, 2022.
Investment Minimum
The minimum initial investment for Investor Shares is $100 (for tax-sheltered accounts, there is no minimum).
Institutional Shares are available with a minimum investment of $100,000.
Literature
Fact Sheet
Islamic Certification
Principal Risks of Investing in the Fund
Market risk: The value of Developing World Fund shares rises and falls as the value of the stocks in which the Fund invests goes up and down. Consider investing in the Fund only if you are willing to accept the risk that you may lose money. Fund share prices, yields, and total returns will change with the fluctuations in the securities and currency markets as well as the fortunes of the industries and companies in which the Fund invests.
Investment strategy risk: Islamic principles restrict the Developing World Fund’s ability to invest in certain market sectors, such as financial companies and conventional fixedincome securities. The adviser believes that Islamic and sustainable investing may mitigate security-specific risks, but the screens used in connection with these strategies reduce the investable universe which may limit investment opportunities and adversely affect the Fund’s performance. Because Islamic principles preclude the use of interest-paying instruments, cash reserves do not earn income.
Equity securities risk: Equity securities may experience significant volatility in response to economic or market conditions or adverse events that affect a particular industry, sector, or company. Larger companies may have slower rates of growth as compared to smaller, faster-growing companies. Smaller companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions.
Foreign investing risk: The Developing World Fund involves risks not typically associated with investing in US securities. Investments in the securities of foreign issuers may involve risks in addition to those normally associated with investments in the securities of US issuers. All foreign investments are subject to risks of: (1) foreign political and economic instability; (2) adverse movements in foreign exchange rates; (3) currency devaluation; (4) the imposition or tightening of exchange controls or other limitations on repatriation of foreign capital; (5) changes in foreign governmental attitudes towards private investment, including potential nationalization, increased taxation, or confiscation of assets, and (6) differing reporting, accounting, and auditing standards of foreign countries.
Developing world risk: All foreign investments are subject to risks of: (1) foreign political and economic instability; (2) adverse movements in foreign exchange rates; (3) currency devaluation; (4) the imposition or tightening of exchange controls or other limitations on repatriation of foreign capital; (5) changes in foreign governmental attitudes towards private investment, including potential nationalization, increased taxation, or confiscation of assets, and (6) differing reporting, accounting, and auditing standards of foreign countries. In developing markets, these risks are magnified by less mature political systems and weaker corporate governance standards than typically found in the developed world.