UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-04276

AMANA MUTUAL FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)

1300 N. State Street
Bellingham, Washington 98225-4730

(Address of Principal Executive Offices, including ZIP Code)

Nicole Trudeau
1300 N. State Street
Bellingham, Washington 98225-4730
(Name and Address of Agent for Service)

Registrant's Telephone Number – (360) 734-9900
Date of fiscal year end: May 31, 2018
Date of reporting period: February 28, 2018

Item 1. Schedule of Investments

The unaudited schedule of investments as of the close of the reporting period is as follows:

Amana Mutual Funds Trust, Income Fund

Common Stocks – 96.7% Number of Shares Market Value Percentage of Assets
 
Consumer Discretionary 
 
Apparel, Footwear & Accessory Design
    Nike, Class B 660,000 $44,239,800 3.2%
 
Automotive Retailers
    Genuine Parts 382,000 35,082,880 2.5%
 
Home Improvement
    Stanley Black & Decker 100,000 15,919,000 1.1%
 
  95,241,680 6.8%
 
Consumer Staples 
 
Beverages
    PepsiCo 250,000 27,432,500 2.0%
 
Household Products
    Colgate-Palmolive 524,000 36,140,280 2.6%
    Kimberly-Clark 230,000 25,511,600 1.8%
    Procter & Gamble 100,000 7,852,000 0.6%
    Unilever ADR 325,000 16,770,000 1.2%
  86,273,880 6.2%
 
Packaged Food
    General Mills 600,000 30,330,000 2.1%
    JM Smucker 185,000 23,365,500 1.7%
    McCormick & Co 350,000 37,373,000 2.7%
  91,068,500 6.5%
 
  204,774,880 14.7%
 
Health Care 
 
Large Pharma
    AbbVie 350,000 40,540,500 2.9%
    Bristol-Myers Squibb 650,000 43,030,000 3.1%
    Eli Lilly 620,000 47,752,400 3.4%
    GlaxoSmithKline ADR 342,007 12,418,274 0.9%
    Johnson & Johnson 180,000 23,378,400 1.7%
    Novartis ADR 450,000 37,507,500 2.7%
    Pfizer 1,150,000 41,756,500 3.0%
  246,383,574 17.7%
 
Life Science Equipment
    Abbott Laboratories 350,000 21,115,500 1.5%
 
  267,499,074 19.2%
 
Industrials 
 
Aircraft & Parts
    United Technologies 200,000 26,948,000 1.9%
 
Commercial & Residential Building Equipment & Systems
    Honeywell International 300,000 45,333,000 3.3%
    Johnson Controls International 500,000 18,435,000 1.3%
  63,768,000 4.6%
 
Flow Control Equipment
    Parker Hannifin 275,000 49,079,250 3.5%
 
Industrial Distribution & Rental
    W.W. Grainger 80,000 20,924,000 1.5%
 
Industrial Machinery
    Illinois Tool Works 300,000 48,432,000 3.5%
 
Measurement Instruments
    Rockwell Automation 300,000 54,240,000 3.9%
 
Rail Freight
    Canadian National Railway 534,000 41,315,580 2.9%
 
  304,706,830 21.8%
 
Materials 
 
Agricultural Chemicals
    Nutrien 120,000 5,910,000 0.4%
 
Basic & Diversified Chemicals
    Air Products & Chemicals 200,000 32,158,000 2.3%
    Methanex 300,000 16,485,000 1.2%
    Praxair 220,000 32,945,000 2.4%
  81,588,000 5.9%
 
Containers & Packaging
    3M 260,000 61,232,600 4.4%
 
Non Wood Building Materials
    Carlisle 330,000 33,960,300 2.4%
 
Specialty Chemicals
    DowDuPont 641,000 45,062,300 3.2%
    PPG Industries 400,000 44,976,000 3.2%
    RPM International 180,000 8,958,600 0.7%
  98,996,900 7.1%
 
  281,687,800 20.2%
 
Technology 
 
Infrastructure Software
    Microsoft 700,000 65,639,000 4.7%
 
Semiconductor Devices
    Intel 900,000 44,361,000 3.2%
    Microchip Technology 540,000 48,022,200 3.4%
  92,383,200 6.6%
 
Semiconductor Manufacturing
    Taiwan Semiconductor ADR 850,048 36,849,581 2.7%
 
  194,871,781 14.0%
 
Total investments (Cost = $530,320,790) 1,348,782,045 96.7%
Other assets (net of liabilities) 45,941,316 3.3%
Total net assets   $1,394,723,361 100.0%
ADR: American Depositary Receipt

 

Amana Mutual Funds Trust, Growth Fund

Common Stocks – 98.3% Number of Shares Market Value Percentage of Assets
 
Communications  
 
Internet Media
    Alphabet, Class A¹ 55,000 $60,715,600 3.6%
 
  60,715,600 3.6%
 
Consumer Discretionary 
 
Home & Office Product Wholesalers
    Fastenal 600,000 32,832,000 2.0%
 
Home Products Stores
    Lowe's 400,000 35,836,000 2.1%
 
Specialty Apparel Stores
    TJX Companies 700,000 57,876,000 3.4%
 
  126,544,000 7.5%
 
Consumer Staples 
 
Beverages
    PepsiCo 235,000 25,786,550 1.5%
 
Household Products
    Church & Dwight 1,200,000 59,028,000 3.5%
    Clorox 250,000 32,270,000 1.9%
    Estee Lauder, Class A 458,594 63,487,753 3.7%
  154,785,753 9.1%
 
  180,572,303 10.6%
 
Health Care  
 
Biotech
    Amgen 355,000 65,238,350 3.9%
    Celgene¹ 200,000 17,424,000 1.0%
  82,662,350 4.9%
 
Large Pharma
    Eli Lilly 510,000 39,280,200 2.3%
    Johnson & Johnson 420,000 54,549,600 3.2%
    Novartis ADR 175,000 14,586,250 0.9%
    Novo Nordisk ADR 1,002,195 51,592,999 3.0%
  160,009,049 9.4%
 
Life Science Equipment
    Agilent Technologies 900,000 61,731,000 3.6%
 
Medical Devices
    Stryker 300,000 48,648,000 2.9%
 
Medical Equipment
    Dentsply Sirona International 215,000 12,052,900 0.7%
 
  365,103,299 21.5%
 
Industrials 
 
Aircraft & Parts
    Harris 390,000 60,898,500 3.6%
 
Building Sub Contractors
    EMCOR Group 682,750 52,100,653 3.1%
 
Measurement Instruments
    Keysight Technologies¹ 500,000 23,505,000 1.4%
    Trimble Navigation¹ 1,500,000 56,895,000 3.3%
  80,400,000 4.7%
 
Metalworking Machinery
    Lincoln Electric Holdings 360,000 31,514,400 1.8%
 
Rail Freight
    Norfolk Southern 300,000 41,724,000 2.5%
    Union Pacific 300,000 39,075,000 2.3%
  80,799,000 4.8%
 
  305,712,553 18.0%
 
Technology 
 
Application Software
    Adobe Systems¹ 450,000 94,108,500 5.5%
    Intuit 450,000 75,087,000 4.4%
    SAP ADR 316,379 33,061,605 2.0%
  202,257,105 11.9%
 
Communications Equipment
    Apple 504,000 89,772,480 5.3%
    Cisco Systems 1,500,000 67,170,000 4.0%
  156,942,480 9.3%
 
Information Services
    Gartner¹ 180,000 20,413,800 1.2%
 
Infrastructure Software
    Oracle 650,000 32,935,500 1.9%
 
IT Services
    Convergys 351,033 8,147,476 0.5%
 
Semiconductor Devices
    Qualcomm 800,000 52,000,000 3.1%
    Xilinx 600,000 42,750,000 2.5%
  94,750,000 5.6%
 
Semiconductor Manufacturing
    ASML 308,000 60,180,120 3.5%
    Taiwan Semiconductor ADR 1,243,297 53,896,925 3.2%
  114,077,045 6.7%
 
  629,523,406 37.1%
 
Total investments (Cost = $501,786,381) 1,668,171,161 98.3%
Other assets (net of liabilities) 27,988,938 1.7%
Total net assets   $1,696,160,099 100.0%

(1) Non-income producing security

ADR: American Depositary Receipt

 

Amana Mutual Funds Trust, Developing World Fund

Common Stocks – 81.4% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications
 
Internet Media
    Baidu ADR² 3,500 $883,190 China³ 2.7%
 
Publishing & Broadcasting
    Naspers ADR 11,200 617,680 South Africa 1.9%
 
Telecom Carriers
    Advanced Info Service 99,000 622,928 Thailand 1.9%
    Telekomunikasi Indonesia ADR 30,000 870,900 Indonesia 2.7%
  1,493,828   4.6%
 
2,994,698 9.2%
 
Consumer Discretionary 
 
Airlines
    Bangkok Airways Public Company NVDR 1,140,000 541,661 Thailand 1.7%
    Copa Holdings, Class A 4,000 543,880 Panama 1.7%
  1,085,541   3.4%
 
Apparel, Footwear & Accessory Design
    Samsonite International 259,800 1,127,847 Hong Kong³ 3.5%
    VF 12,000 894,840 USA 2.7%
  2,022,687   6.2%
 
Automobiles
    Ford Otomotiv Sanayi 52,500 861,897 Turkey 2.7%
 
Home Improvement
    Coway 3,000 238,781 Korea 0.7%
    Techtronic Industries 140,000 878,427 Hong Kong 2.7%
  1,117,208   3.4%
 
Jewelry & Watch Stores
    Pandora 5,000 521,203 Denmark 1.6%
 
5,608,536 17.3%
 
Consumer Staples 
 
Food & Drug Stores
    Clicks Group 98,000 1,394,044 South Africa 4.3%
 
Household Products
    Colgate-Palmolive 8,000 551,760 USA 1.7%
    Unilever ADR 14,700 758,520 United Kingdom 2.3%
  1,310,280   4.0%
 
Packaged Food
    Indofood CBP Sukses Makmur 800,000 521,863 Indonesia 1.6%
    M. Dias Branco 30,000 554,560 Brazil 1.7%
  1,076,423   3.3%
 
3,780,747 11.6%
 
Financials  
 
Islamic Banking
    BIMB Holdings 531,000 567,830 Malaysia 1.7%
 
Real Estate Owners & Developers
    SM Prime Holdings 1,610,000 1,088,065 Philippines 3.4%
 
1,655,895 5.1%
 
Health Care  
 
Generic Pharma
    Aspen Pharmacare Holdings 28,000 636,774 South Africa 2.0%
 
Health Care Facilities
    Bangkok Dusit Medical Services NVDR 380,000 267,005 Thailand 0.8%
    IHH Healthcare 300,000 451,477 Malaysia 1.4%
    KPJ Healthcare 2,535,992 636,098 Malaysia 2.0%
  1,354,580   4.2%
 
Specialty Pharma
    Genomma Lab Internacional, Class B² 273,500 295,689 Mexico 0.9%
    Kalbe Farma 5,900,000 685,527 Indonesia 2.1%
  981,216   3.0%
 
2,972,570 9.2%
 
Industrials 
 
Agricultural Machinery
    Turk Traktor ve Ziraat Makineleri 13,500 273,965 Turkey 0.8%
 
Logistics Services
    Kerry Logistics Network 400,000 543,851 China³ 1.7%
 
Rail Freight
    Kansas City Southern Industries 6,500 669,760 USA 2.1%
 
Transport Support Services
    Grupo Aeroportuario Sureste ADR 1,350 239,328 Mexico 0.7%
 
1,726,904 5.3%
 
Materials 
 
Precious Metal Mining
    Randgold Resources ADR 9,750 789,945 South Africa 2.4%
 
789,945 2.4%
 
Technology  
 
Application Software
    Tencent Holdings ADR 36,000 1,976,040 China 6.1%
 
Communications Equipment
    Samsung Electronics 250 543,267 Korea 1.7%
    Sercomm 200,000 574,805 Taiwan 1.8%
  1,118,072   3.5%
 
Computer Hardware & Storage
    Advantech 80,000 588,286 Taiwan 1.8%
 
Electronics Components
    Silergy 15,000 330,896 Taiwan³ 1.0%
 
Semiconductor Manufacturing
    Taiwan Semiconductor ADR 21,000 910,350 Taiwan 2.8%
 
4,923,644 15.2%
 
Utilities 
 
Integrated Utilities
    AboitizPower 815,000 601,846 Philippines 1.8%
 
Power Generation
    Manila Electric 80,000 516,889 Philippines 1.6%
 
Utility Networks
    Enersis Americas ADR 10,000 114,200 Chile 0.4%
    Hong Kong & China Gas 383,570 756,944 China³ 2.3%
  871,144   2.7%
 
  1,989,879 6.1%
 
Total Common Stocks   $26,442,818   81.4%
 
Warrants – 0.0%4 Number of Shares Market Value Country¹ Percentage of Assets
 
Financials  
 
Islamic Banking
   BIMB Holdings Warrants² 80,000 $5,719 Malaysia 0.0%4
 
  5,719 0.0%4
 
Total Investments (Cost = $21,351,501) 26,448,537   81.4%
Other Assets (net of liabilities) 6,035,956   18.6%
Total Net Assets   $32,484,493   100.0%

¹ Country of domicile
² Non-income producing
³ Denotes a country of primary exposure
4 Less than 0.05%

ADR: American Depository Receipt
NVDR: Thai Non-Voting Depository

 

Amana Mutual Funds Trust, Participation Fund

Corporate Sukuk – 72.2% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Communications  
 
    Ooredoo Tamweel² 3.039% due 12/03/2018 $1,750,000 $1,750,579 Qatar 3.0%
 
    1,750,579   3.0%
 
Consumer Discretionary
 
    Al Shindagha² 3.776% due 11/26/2019 2,400,000 2,408,038 United Arab Emirates 4.1%
    Majid Al Futtaim² 4.50% due 11/03/2025 2,250,000 2,301,309 United Arab Emirates 3.9%
 
    4,709,347   8.0%
 
Energy
 
    Petronas Global³ 2.707% due 03/18/2020 750,000 745,255 Malaysia 1.2%
 
  745,255 1.2%
 
Financials
 
    Dubai International Financial Centre² 4.325% due 11/12/2024 2,500,000 2,540,482 United Arab Emirates 4.3%
    Dubai Islamic Bank² 2.921% due 06/03/2020 2,250,000 2,228,114 United Arab Emirates 3.8%
    Emirates Islamic Bank² 3.542% due 05/31/2021 2,500,000 2,500,912 United Arab Emirates 4.2%
    Emirates Madina Group² 4.564% due 06/18/2024 2,250,000 2,297,754 United Arab Emirates 3.9%
    Exim Malaysia² 2.874% due 02/19/2019 1,000,000 998,869 Malaysia 1.7%
    Investment Corporation of Dubai² 3.508% due 05/21/2020 2,500,000 2,493,068 United Arab Emirates 4.2%
    Noor² 2.788% due 04/28/2020 1,000,000 985,714 United Arab Emirates 1.7%
    Qatar Islamic Bank² 2.754% due 10/27/2020 2,000,000 1,937,362 Qatar 3.3%
    SIB Sukuk Co III² 3.084% due 09/08/2021 2,500,000 2,458,818 United Arab Emirates 4.2%
    Sukuk Funding No3² 4.348% due 12/03/2018 1,000,000 1,009,596 United Arab Emirates 1.7%
    TF Varlik Kiralama² 5.375% due 04/24/2019 2,000,000 2,035,410 Turkey 3.5%
 
  21,486,099 36.5%
 
Industrials
 
    DP World Crescent² 3.908% due 05/31/2023 2,500,000 2,514,187 United Arab Emirates 4.3%
    Jebel Ali Free Zone² 7.00% due 06/19/2019 2,250,000 2,356,875 United Arab Emirates 4.0%
 
  4,871,062 8.3%
 
Materials
 
    Equate Sukuk Spc² 3.944% due 02/21/2024 2,500,000 2,496,488 United Arab Emirates 4.2%
 
  2,496,488 4.2%
 
Technology
 
    Axiata² 4.357% due 03/24/2026 1,250,000 1,273,296 Malaysia 2.2%
 
  1,273,296 2.2%
 
Utilities
 
    DEWA² 3.00% due 03/05/2018 1,500,000 1,500,009 United Arab Emirates 2.5%
    Saudi Electric Global³ 4.00% due 04/08/2024 1,500,000 1,513,086 Saudi Arabia 2.6%
    TNB Global Ventures Capital² 3.244% due 10/19/2026 2,290,000 2,148,663 Malaysia 3.7%
 
  5,161,758 8.8%
 
Total Corporate Sukuk     42,493,884   72.2%
 
Government Sukuk –24.9% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Government Bonds
 
    China Beige Book International² 6.273% due 11/22/2018 $1,750,000 $1,782,882 Bahrain 3.0%
    Department of Finance Dubai² 3.875% due 01/30/2023 1,750,000 1,768,536 United Arab Emirates 3.0%
    Hazine Mustesarligi Varlik Kiralama³ 2.803% due 03/26/2018 1,000,000 999,972 Turkey 1.7%
    Kingdom of Saudi Arabia² 3.628% due 04/20/2027 2,500,000 2,406,055 Saudi Arabia 4.1%
    Perusahaan Penerbit SBSN III³ 6.125% due 03/15/2019 500,000 516,750 Indonesia 0.9%
    Perusahaan Penerbit SBSN² 4.55% due 03/29/2026 1,750,000 1,788,273 Indonesia 3.0%
    Perusahaan Penerbit SBSN³ 4.55% due 03/29/2026 250,000 255,468 Indonesia 0.4%
    RAK Capital² 3.094% due 03/31/2025 1,500,000 1,441,995 United Arab Emirates 2.5%
    Sharjah² 3.764% due 09/17/2024 1,500,000 1,509,423 United Arab Emirates 2.6%
    State of Qatar² 3.241% due 01/18/2023 2,250,000 2,199,998 Qatar 3.7%
 
     
 
Total Government Sukuk     14,669,352   24.9%
 
Total investments (Cost = $58,083,369)   57,163,236   97.1%
Other assets     1,685,893   2.9%
Total net assets     $58,849,130   100.0%

¹Country of risk

² Security was purchased pursuant to Regulation S under the Securities Act of 1933 which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At February 28, 2018, the aggregate value of these securities was $53,132,706 representing 90.3% of net assets.

³ Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At February 28, 2018, the net value of these securities was $4,030,530 representing 6.8% of net assets.

Notes to Schedule of Investments (unaudited)

1. Organization:

Amana Mutual Funds Trust (the "Trust") was organized as a Delaware Statutory Trust on March 11, 2013, and is the successor to Amana Mutual Funds Trust, an Indiana Business Trust organized on July 26, 1984, pursuant to a reorganization on July 19, 2013.

2. Significant Accounting Policies

a. Security valuation:

Under procedures approved by the Trust's Board of Directors, Saturna Capital, the Trust's investment adviser and administrator, has formed a Pricing Committee to administer the pricing and valuation of portfolio securities, including valuation of securities for which market quotations are not readily available.

Investments in securities traded on a national securities exchange and over-the-counter securities for which sale prices are available are valued at that price. Securities for which there are no sales are valued at latest bid price.

Foreign markets may close before the time as of which the Funds' share prices are determined. Because of this, events occurring after the close and before the determination of the Funds' share prices may have a material effect on the values of some or all the Funds' foreign securities. To account for this, the Funds may use outside pricing services for valuation of their non-US securities.

In cases in which there is not a readily available market price, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.

Security transactions are recorded on trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.

Sukuk certificates in which the Participation Fund invests are valued based on evaluated prices supplied by an independent pricing service, which include valuations provided by market makers and other participants, provided that there is sufficient market activity on which the pricing service can base such valuations. Where market activity is insufficient for making such determinations, the independent pricing service uses proprietary valuation methodologies and may consider a variety of factors, such as yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, and other factors in order to calculate the security's fair value.

b. Fair Value Measurements Disclosure:

Accounting Standards Codification (ASC) 820 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds' investments and are summarized below.

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

Level 2 – Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of February 28, 2018, in valuing the Funds' investments carried at value:

Funds Level 1 Quoted Price Level 2 Significant Observable Input Level 3 Significant Unobservable Input Total
 
Income Fund
Common Stocks¹ $1,348,782,045 $- $- $1,348,782,045
Total Assets $1,348,782,045 $- $- $1,348,782,045
 
Growth Fund
Common Stocks¹ $1,668,171,161 $- $- $1,668,171,161
Total Assets $1,668,171,161 $- $- $1,668,171,161
 
Developing World
Common Stocks
    Communications $2,371,770 $622,928 $- $2,994,698
    Consumer Discretionary 1,438,720 4,169,816 - 5,608,536
    Consumer Staples 1,310,280 2,470,467 - 3,780,747
    Financials - 1,655,895 - 1,655,895
    Health Care - 2,972,570 - 2,972,570
    Industrials 909,088 817,816 - 1,726,904
    Materials 789,945 - - 789,945
    Technology 2,886,390 2,037,254 - 4,923,644
    Utilities 114,200 1,875,679 - 1,989,879
Total Common Stocks $9,820,393 $16,622,425 - $26,442,818
    Warrants¹ $5,719 $- - $5,719
Total Assets $9,826,112 $16,622,425 $- $26,448,537
 
Participation Fund
Corporate Sukuk¹ $- $42,493,884 $- $42,493,884
Government Sukuk¹ - 14,669,352 - 14,669,352
Total Assets $- $57,163,236 $- $57,163,236

During the period ended February 28, 2018, no Fund had transfers between Level 1, Level 2, and Level 3.

¹ See the Schedule of Investments for additional details

3. Derivative instruments and hedging activities:

The Funds have adopted the financial accounting reporting rules required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification. The Funds are required to include enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position.

During a previous fiscal period ended, the Funds held positions in rights offerings as a result of actions taken by the board of directors of the underlying companies. Rights offerings are issued to existing shareowners of companies and allow shareowners to purchase additional company shares, generally at a discount to the current market price, prior to a set expiration date. As a result of exercising certain rights offerings, the Funds received warrants. Holders of warrants have the right to purchase additional securities directly from the issuer at a set exercise price, prior to a stated expiration date.

The effects of these derivative instruments on the Fund's financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of February 28, 2018, by risk category are as follows:

Developing World Fund

Statement of Asset and Liabilities Location

Derivatives not designated as hedging instruments

Asset Derivatives

Investments in securities, at value

Warrants

$5,719

Total

$5,719

Statement of Operations effects realized

Developing World Fund

Derivatives not designated as hedging instruments

Realized Gain (Loss)

Changes in Unrealized Gain (Loss)

Warrants

$-

$339

Total

$-

$339

4. Federal Income Taxes:

The cost basis of investments for federal income tax purposes at February 28, 2018, were as follows:

 

Income Fund

Growth Fund

Cost of investments

$530,320,790 $501,786,381

Gross unrealized appreciation

821,657,653 1,166,442,437

Gross unrealized depreciation

3,196,398 57,657

Net unrealized appreciation

$818,461,255 $1,166,384,780

 

 

Developing World Fund

Participation Fund

Cost of investments

$21,351,501 $58,083,369

Gross unrealized appreciation

6,578,208 29,733

Gross unrealized depreciation

1,481,172 949,866

Net unrealized appreciation

$5,097,036 $(920,133)

5. Subsequent Events

In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.

Item 2. Controls and Procedures

  1. An evaluation was performed within 90 days of the filing of this report, under the supervision of and with the participation of the registrant's management, including the principal executive officer and the principal financial officer, regarding the effectiveness of the design and operation of the registrant's disclosure controls and procedures. Based on that evaluation, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures were effective.
  2. The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits

Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AMANA MUTUAL FUNDS TRUST

By:

/s/ Nicholas Kaiser
Nicholas Kaiser, President and Chief Executive Officer

Date: April 27, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Nicholas Kaiser
Nicholas Kaiser, President and Chief Executive Officer

Date: April 27, 2018

By:

/s/ Christopher Fankhauser
Christopher Fankhauser, Chief Financial Officer

Date: April 27, 2018

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