Following Principles of Islamic Finance

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, Esq.

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, 2019

Date of reporting period: February 28, 2019


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 – 97.7%         Number of Shares      Market Value      Percentage of Assets  

Consumer Discretionary        

 

          
 

Apparel, Footwear & Accessory Design

        
 

Nike, Class B

       320,000      $ 27,433,600        2.1%  
 

Automotive Retailers

          
 

Genuine Parts

       382,000        41,553,960        3.1%  
 

Home Improvement

          
 

Stanley Black & Decker

 

        

 

100,000

 

 

 

    

 

13,243,000

 

 

 

    

 

1.0%

 

 

 

          82,230,560        6.2%  

Consumer Staples

 

          
 

Beverages

          
 

PepsiCo

       250,000        28,910,000        2.2%  
 

Household Products

          
 

Colgate-Palmolive

       524,000        34,515,880        2.6%  
 

Kimberly-Clark

       230,000        26,870,900        2.0%  
 

Procter & Gamble

       40,000        3,942,000        0.3%  
 

Unilever ADR

       325,000       

 

17,299,750

 

 

 

    

 

1.3%

 

 

 

            82,628,530        6.2%  
 

Packaged Food

          
 

General Mills

       300,000        14,139,000        1.0%  
 

McCormick & Co

       350,000       

 

47,593,000

 

 

 

    

 

3.6%

 

 

 

                   

 

61,732,000

 

 

 

    

 

4.6%

 

 

 

         

 

173,270,530

 

 

 

    

 

13.0%

 

 

 

Health Care

 

          
 

Large Pharma

          
 

AbbVie

       380,000        30,111,200        2.3%  
 

Bristol-Myers Squibb

       650,000        33,579,000        2.5%  
 

Eli Lilly

       620,000        78,299,800        5.9%  
 

GlaxoSmithKline ADR

       381,107        15,381,478        1.2%  
 

Johnson & Johnson

       230,000        31,427,200        2.4%  
 

Novartis ADR

       235,400        21,475,542        1.6%  
 

Pfizer

       1,150,000       

 

49,852,500

 

 

 

    

 

3.7%

 

 

 

          260,126,720        19.6%  


 

Life Science Equipment

          
 

Abbott Laboratories

 

        

 

350,000

 

 

 

    

 

27,167,000

 

 

 

    

 

2.0%

 

 

 

          287,293,720        21.6%  

Industrials

 

          
 

Aircraft & Parts

          
 

United Technologies

       160,000        20,107,200        1.5%  
 

Commercial & Residential Building Equipment & Systems

 

     
 

Honeywell International

       300,000        46,221,000        3.5%  
 

Johnson Controls International

       500,000        17,635,000        1.3%  
 

Resideo Technologies(1)

       50,000       

 

1,285,000

 

 

 

    

 

0.1%

 

 

 

         

 

 

 

65,141,000

 

 

  

 

 

 

4.9%

 

 

 

Flow Control Equipment

          
 

Parker Hannifin

       275,000        48,444,000        3.7%  
 

Industrial Distribution & Rental

          
 

W.W. Grainger

       80,000        24,381,600        1.8%  
 

Industrial Machinery

          
 

Illinois Tool Works

       300,000        43,224,000        3.3%  
 

Measurement Instruments

          
 

Rockwell Automation

       300,000        53,568,000        4.0%  
 

Rail Freight

          
 

Canadian National Railway

 

        

 

534,000

 

 

 

    

 

45,859,920

 

 

 

    

 

3.4%

 

 

 

          300,725,720        22.6%  

Materials

 

          
 

Agricultural Chemicals

          
 

Nutrien

       170,000        9,254,800        0.7%  
 

Basic & Diversified Chemicals

          
 

Air Products & Chemicals

       200,000        36,236,000        2.7%  
 

Linde PLC

       160,000        27,718,400        2.1%  
 

Methanex

       300,000       

 

16,920,000

 

 

 

    

 

1.3%

 

 

 

         

 

 

 

80,874,400

 

 

  

 

 

 

6.1%

 

 


 

Containers & Packaging
3M

     200,000       41,478,000        3.1%  
 

Non Wood Building Materials

       
 

Carlisle

        330,000       40,616,400        3.1%  
 

Specialty Chemicals

          
 

DowDuPont

        641,000       34,120,430        2.5%  
 

PPG Industries

        400,000       44,788,000        3.4%  
 

RPM International

 

       

 

180,000

 

 

 

   

 

10,416,600

 

 

 

    

 

0.8%

 

 

 

                 

 

 

 

 

89,325,030

 

 

 

 

  

 

 

 

 

6.7%

 

 

 

 

          261,548,630        19.7%  

Technology

          
 

Communications Equipment

       
 

Cisco Systems

        150,000       7,765,500        0.6%  
 

Infrastructure Software

          
 

Microsoft

        550,000       61,616,500        4.6%  
 

Semiconductor Devices

          
 

Intel

        900,000       47,664,000        3.6%  
 

Microchip Technology

 

       

 

504,000

 

 

 

    43,782,480        3.3%  
         

 

 

 

91,446,480

 

 

  

 

 

 

6.9%

 

 

 

Semiconductor Manufacturing

       
 

Taiwan Semiconductor ADR

 

         

 

850,048

 

 

 

   

 

33,194,374

 

 

 

    

 

2.5%

 

 

 

                   

 

194,022,854

 

 

 

    

 

14.6%

 

 

 

Total investments

      (Cost = $ 493,950,329     1,299,092,014        97.7%  

Other Assets (net of liabilities)

       30,711,988        2.3%  

Total net assets

                $ 1,329,804,002        100.0%  

(1)Non-income producing

ADR: American Depository Receipt


Amana Mutual Funds Trust, Growth Fund

 

Common Stocks – 93.0%          Number of shares      Market Value      Percentage of Assets  

Communications

 

           
 

Internet Media

           

Alphabet, Class A(1)

 

         

 

25,000

 

 

 

    

 

$28,163,750

 

 

 

    

 

1.4%

 

 

 

           28,163,750        1.4%  

Consumer Discretionary

 

           
 

Home & Office Product Wholesalers

        
 

Fastenal

        600,000        37,764,000        1.9%  
 

Home Products Stores

           
 

Lowe’s

        400,000        42,036,000        2.1%  
 

Specialty Apparel Stores

           
 

TJX Companies

 

         

 

1,400,000

 

 

 

    

 

71,806,000

 

 

 

    

 

3.7%

 

 

 

           151,606,000        7.7%  

Consumer Staples

 

           
 

Beverages

           
 

PepsiCo

        235,000        27,175,400        1.4%  
 

Household Products

           
 

Church & Dwight

        1,200,000        78,960,000        4.0%  
 

Clorox

        250,000        39,507,500        2.0%  
 

Estee Lauder, Class A

        458,594        71,971,742        3.7%  
                    

 

190,439,242

 

 

 

    

 

9.7%

 

 

 

           217,614,642        11.1%  

Health Care

 

           
 

Biotech

           
 

Amgen

        355,000        67,478,400        3.4%  
 

Celgene(1)

        200,000        16,624,000        0.9%  
           84,102,400        4.3%  


 

Large Pharma

           
 

Eli Lilly

        350,000        44,201,500        2.3%  
 

Johnson & Johnson

        420,000        57,388,800        2.9%  
 

Novo Nordisk ADR

        1,002,195        49,057,445        2.5%  
             150,647,745        7.7%  
 

Life Science Equipment

           
 

Agilent Technologies

        900,000        71,496,000        3.6%  
 

Medical Devices

           
 

Stryker

              300,000        56,553,000        2.9%  
           362,799,145        18.5%  

Industrials

 

           
 

Aircraft & Parts

           
 

Harris

        390,000        64,322,700        3.3%  
 

Building Sub Contractors

           
 

EMCOR Group

        682,750        49,246,758        2.5%  
 

Measurement Instruments

           
 

Keysight Technologies(1)

        500,000        42,205,000        2.1%  
 

Trimble(1)

        1,500,000        60,015,000        3.1%  
             102,220,000        5.2%  
 

Metalworking Machinery

           
 

Lincoln Electric Holdings

        360,000        31,111,200        1.6%  
 

Rail Freight

           
 

Norfolk Southern

        300,000        53,790,000        2.7%  
 

Union Pacific

        300,000        50,310,000        2.6%  
                        

 

104,100,000

 

 

 

    

 

5.3%

 

 

 

           351,000,658        17.9%  


Technology

 

           
 

Application Software

           
 

Adobe Systems(1)

      450,000      118,125,000        6.0%  
 

Intuit

      450,000      111,208,500        5.7%  
 

SAP ADR

      316,379      33,893,682        1.7%  
             263,227,182        13.4%  
 

Communications Equipment

        
 

Apple

      504,000      87,267,600        4.4%  
 

Cisco Systems

      1,500,000      77,655,000        4.0%  
             164,922,600        8.4%  
 

Information Services

           
 

Gartner(1)

      180,000      25,614,000        1.3%  
 

Infrastructure Software

           
 

Oracle

      650,000      33,884,500        1.7%  
 

Semiconductor Devices

           
 

Qualcomm

      800,000      42,712,000        2.2%  
 

Xilinx

      600,000      75,180,000        3.8%  
             117,892,000        6.0%  
 

Semiconductor Manufacturing

        
 

ASML Holding NY

      308,000      56,323,960        2.9%  
 

Taiwan Semiconductor ADR

      1,222,471      47,737,493        2.4%  
             104,061,453        5.3%  
 

Technology Distributors

           
 

SYNNEX Corporation

        44,335      4,350,150        0.3%  
          

 

713,951,885

 

 

 

    

 

36.4%

 

 

 

 Total investments

        (Cost = $475,809,752)      1,825,136,080        93.0%  

 Other Assets (net of liabilities)

        136,337,588        7.0%  

 Total net assets

             $ 1,961,473,668        100.0%  

 (1)Non-income producing

 ADR: American Depository Receipt


Amana Mutual Funds Trust, Developing World Fund

 

Common Stocks – 83.0%          Number of
Shares
     Market
Value
     Country(1)   Percentage of
Assets
 

Communications

 

             
 

Cable & Satellite

             
 

MultiChoice Group(2)

        3,120      $ 23,298      South Africa     0.1%  
 

Entertainment Content

             
 

Naspers ADR

        15,600        675,480      South Africa     2.3%  
 

Internet Media

             
 

Baidu ADR(2)

        3,500        568,890      China(3)     1.9%  
 

Telecom Carriers

             
 

Advanced Info Service

        99,000        571,844      Thailand     2.0%  
 

Telekomunikasi Indonesia ADR

        30,000        827,400      Indonesia     2.8%  
                    

 

1,399,244

 

 

 

        

 

4.8%

 

 

 

           2,666,912          9.1%  

Consumer Discretionary

 

             
 

Airlines

             
 

Copa Holdings, Class A

        4,000        352,680      Panama     1.2%  
 

Apparel, Footwear & Accessory Design

 

       
 

Samsonite International

        259,800        772,066      Hong Kong(3)     2.6%  
 

VF

        12,000        1,048,320      United States     3.6%  
             1,820,386          6.2%  
 

Automobiles

             
 

Ford Otomotiv Sanayi

        52,500        544,983      Turkey     1.9%  
 

Home Improvement

             
 

Techtronic Industries

 

         

 

140,000

 

 

 

    

 

935,229

 

 

 

   Hong Kong

 

   

 

3.2%

 

 

 

           3,653,278          12.5%  

Consumer Staples

 

             
 

Food & Drug Stores

             
 

Clicks Group

        78,000        1,002,114      South Africa     3.4%  


 

Household Products

             
 

Colgate-Palmolive

        12,600        829,962      United States     2.8%  
 

Unilever ADR

        14,700        782,481      United Kingdom     2.7%  
             1,612,443          5.5%  
 

Packaged Food

             
 

Indofood CBP Sukses Makmur

        800,000        581,483      Indonesia     2.0%  
 

M. Dias Branco

        30,000        377,301      Brazil     1.3%  
                    

 

958,784

 

 

 

        

 

3.3%

 

 

 

           3,573,341          12.2%  

Financials

 

             
 

Islamic Banking

             
 

BIMB Holdings

        531,000        554,391      Malaysia     1.8%  
 

Real Estate Owners & Developers

             
 

SM Prime Holdings

         

 

1,610,000

 

 

 

    

 

1,192,559

 

 

 

   Philippines

 

   

 

4.1%

 

 

 

           1,746,950          5.9%  

Health Care

 

             
 

Generic Pharma

             
 

Aspen Pharmacare Holdings

        25,000        247,496      South Africa     0.9%  
 

Health Care Facilities

             
 

Bangkok Dusit Medical Services NVDR

        380,000        284,520      Thailand     1.0%  
 

IHH Healthcare

        300,000        421,723      Malaysia     1.4%  
 

KPJ Healthcare

        2,535,992        630,212      Malaysia     2.1%  
                    

 

1,336,455

 

 

 

        

 

4.5%

 

 

 

             1,583,951          5.4%  

Industrials

 

             
 

Logistics Services

             
 

Kerry Logistics Network

        400,000        664,690      China(3)     2.3%  
 

Rail Freight

             
 

Kansas City Southern Industries

        6,500        706,160      United States     2.4%  
 

Transport Support Services

             
 

Grupo Aeroportuario Sureste ADR

         

 

1,350

 

 

 

    

 

228,528

 

 

 

   Mexico

 

   

 

0.7%

 

 

 

             1,599,378          5.4%  


Materials

 

             
 

Precious Metal Mining

             
 

Barrick Gold

        59,748        755,215        Canada       2.6%  
 

Specialty Chemicals

             
 

International Flavors & Fragrances

         

 

5,000

 

 

 

    

 

637,500

 

 

 

    

 

United States

 

 

 

   

 

2.1%

 

 

 

           1,392,715          4.7%  

Technology

 

             
 

Application Software

             
 

Tencent Holdings ADR

        36,000        1,541,160        China       5.2%  
 

Communications Equipment

             
 

Samsung Electronics

        23,800        952,520        Korea       3.3%  
 

Sercomm

        266,000        563,048        Taiwan       1.9%  
           1,515,568          5.2%  
 

Computer Hardware & Storage

             
 

Advantech

        90,000        685,698        Taiwan       2.3%  
 

Electronics Components

             
 

Silergy

        41,400        740,212        China(3)       2.5%  
 

Semiconductor Devices

             
 

Micron Technology(2)

        17,000        694,960        United States       2.4%  
 

Semiconductor Manufacturing

             
 

Taiwan Semiconductor ADR

         

 

21,000

 

 

 

    

 

820,050

 

 

 

    

 

Taiwan

 

 

 

   

 

2.8%

 

 

 

           5,997,648          20.4%  


Utilities

 

             
 

Integrated Utilities

             
 

AboitizPower

        815,000        548,798        Philippines       1.9%  
 

Power Generation

             
 

Manila Electric

        80,000        568,564        Philippines       1.9%  
 

Utility Networks

             
 

Enersis Americas ADR

        10,000        87,700        Chile       0.3%  
 

Hong Kong & China Gas

        421,927        976,649        China(3)       3.3%  
 
                    

 

1,064,349

 

 

 

            

 

3.6%

 

 

 

                    

 

2,181,711

 

 

 

            

 

7.4%

 

 

 

Total Common Stocks

       

 

9,231,537

 

 

 

    

 

24,395,884

 

 

 

      

 

83.0%

 

 

 

Warrants – 0.0%

             

Financials

 

             
 

Islamic Banking

             
 

BIMB Holdings Warrants(2)

         

 

80,000

 

 

 

    

 

5,410

 

 

 

    

 

Malaysia

 

 

 

   

 

0.0%

 

(4) 

 

                    

 

5,410

 

 

 

            

 

0.0%

 

(4) 

 

Total investments

       

(Cost =

$20,966,211)

 

 

     24,401,294          83.0%  
Other assets            4,991,247                17.0%  

Total net assets

                 $ 29,392,541                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 – 66.0%    Coupon /
Maturity
     Face
Amount
     Market
Value
     Country(1)      Percentage
of Assets
 

Consumer Discretionary

 

              
 

Al Shindagha(2)

    
3.776% due
11/26/2019
 
 
     3,250,000        3,250,055        United Arab Emirates        4.8%  

Majid Al Futtaim(2)

    

 

4.50% due
11/03/2025

 

 
 

 

    

 

3,000,000

 

 

 

    

 

3,027,741

 

 

 

    

 

United Arab Emirates

 

 

 

    

 

4.4%

 

 

 

           6,277,796           9.2%  

Energy

 

              

Petronas Global(3)

    

 

2.707% due
03/18/2020

 

 
 

 

    

 

3,000,000

 

 

 

    

 

2,983,509

 

 

 

    

 

Malaysia

 

 

 

    

 

4.4%

 

 

 

           2,983,509           4.4%  

Financials

 

              
 

Aldar(2)

    
4.75% due
09/29/2025
 
 
     1,000,000        1,020,448        United Arab Emirates        1.5%  
 

Dubai International Financial Centre(2)

    
4.325% due
11/12/2024
 
 
     3,000,000        3,003,099        United Arab Emirates        4.4%  
 

Dubai Islamic Bank(2)

    
2.921% due
06/03/2020
 
 
     2,000,000        1,976,386        United Arab Emirates        2.9%  
 

Emirates Islamic Bank(2)

    
3.542% due
05/31/2021
 
 
     3,000,000        2,979,936        United Arab Emirates        4.4%  
 

Emirates Madina Group(2)

    
4.564% due
06/18/2024
 
 
     3,000,000        3,032,082        United Arab Emirates        4.5%  
 

Investment Corporation of Dubai(2)

    
3.508% due
05/21/2020
 
 
     2,975,000        2,957,581        United Arab Emirates        4.3%  
 

Noor(2)

    
2.788% due
04/28/2020
 
 
     3,000,000        2,960,523        United Arab Emirates        4.3%  
 

Qatar Isalmic Bank(2)

    
2.754% due
10/27/2020
 
 
     3,000,000        2,948,313        Qatar        4.3%  
 

SIB Sukuk Co III(2)

    

 

3.084% due
09/08/2021

 

 
 

 

    

 

3,000,000

 

 

 

    

 

2,940,174

 

 

 

    

 

United Arab Emirates

 

 

 

    

 

4.3%

 

 

 

           23,818,542           34.9%  

Industrials

 

              
 

DP World Crescent(2)

    

 

3.908% due
05/31/2023

 

 
 

 

    

 

3,000,000

 

 

 

    

 

3,012,657

 

 

 

    

 

United Arab Emirates

 

 

 

    

 

4.4%

 

 

 

           3,012,657           4.4%  

Materials

              
 

Equate Sukuk Spc(2)

    

 

3.944% due
02/21/2024

 

 
 

 

    

 

3,000,000

 

 

 

    

 

2,998,335

 

 

 

    

 

United Arab Emirates

 

 

 

    

 

4.4%

 

 

 

           2,998,335           4.4%  

Technology

              
 

Axiata(2)

    

 

4.357% due
03/24/2026

 

 
 

 

    

 

1,750,000

 

 

 

    

 

1,747,433

 

 

 

    

 

Malaysia

 

 

 

    

 

2.6%

 

 

 

           1,747,433           2.6%  

Utilities

              
 

Saudi Electric Global(2)

    
4.00% due
04/08/2024
 
 
     500,000        501,908        Cayman Islands        0.8%  
 

Saudi Electric Global(3)

    
4.00% due
04/08/2024
 
 
     1,500,000        1,505,955        Saudi Arabia        2.2%  
 

TNB Global Ventures Capital(2)

    

 

3.244% due
10/19/2026

 

 
 

 

    

 

2,290,000

 

 

 

    

 

2,123,196

 

 

 

    

 

Malaysia

 

 

 

    

 

3.1%

 

 

 

          

 

4,131,059

 

 

 

       

 

6.1%

 

 

 

Total Corporate Sukuk

              45,265,000        44,969,331                 66.0%  


Government Sukuk – 26.7%

                                            

Foreign Government Sukuk

 

              
 

Department of Finance Dubai(2)

    
3.875% due
01/30/2023
 
 
     2,750,000        2,750,896       
United Arab
Emirates
 
 
     4.0%  
 

Kingdom of Saudi Arabia(2)

    
3.628% due
04/20/2027
 
 
     3,000,000        2,946,033       
Saudi
Arabia
 
 
     4.3%  
 

Oman Sovereign(2)

    
4.397% due
06/01/2024
 
 
     3,250,000        3,060,571        Oman        4.5%  
 

Perusahaan Penerbit SBSN III(2)

    
6.125% due
03/15/2019
 
 
     500,000        500,000        Indonesia        0.8%  
 

Perusahaan Penerbit SBSN(2)

    
4.55% due
03/29/2026
 
 
     1,485,000        1,514,700        Indonesia        2.2%  
 

Perusahaan Penerbit SBSN(3)

    
3.75% due
03/01/2023
 
 
     500,000        499,375        Indonesia        0.7%  
 

RAK Capital(2)

    
3.094% due
03/31/2025
 
 
     1,750,000        1,680,000       
United Arab
Emirates
 
 
     2.5%  
 

Sharjah Sukuk(2)

    
3.764% due
09/17/2024
 
 
     2,500,000        2,497,333       
United Arab
Emirates
 
 
     3.7%  
 

State of Qatar(2)

    
3.241% due
01/18/2023
 
 
     2,750,000        2,750,283        Qatar        4.0%  
          

 

18,199,191

 

 

 

       

 

26.7%

 

 

 

           

Total Government Sukuk

                      

 

18,199,191

 

 

 

             

 

26.7%

 

 

 

Total investments

             (Cost = $64,053,129)        63,168,522           92.7%  

Other Assets (net of liabilities)

           4,982,982           7.3%  

Total net assets

                       68,151,504                 100.0%  
(1) 

Country of activity

 

(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, 2019, the aggregate value of these securities was $58,179,683 representing 85.4% 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, 2019, the net value of these securities was $4,988,839 representing 7.3% 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, 2019, in valuing the Funds’ investments carried at value:

 

Fair Value Measurements Table:

 

        
Funds   

Level 1

Quoted Price

    

Level 2 Significant

Observable Input

    

Level 3 Significant

Unobservable Input

     Total  
                                  

Income Fund

           
Common Stocks(1)      $1,299,092,014        $-        $-        $1,299,092,014  

Total Assets

     $1,299,092,014        $-        $-        $1,299,092,014  
                                     

Growth Fund

           

Common Stocks(1)

     $1,825,136,080        $-        $-        $1,825,136,080  

Total Assets

     $1,825,136,080        $-        $-        $1,825,136,080  
                                     

World Fund

           
Common Stocks            

Communications

     $ 2,095,068        $ 571,844        $-        $ 2,666,912  

Consumer Discretionary

     1,401,000        2,252,278        -        3,653,278  

Consumer Staples

     1,612,443        1,960,898        -        3,573,341  

Financials

     -        1,746,950        -        1,746,950  

Health Care

     -        1,583,951        -        1,583,951  

Industrials

     934,688        664,690        -        1,599,378  

Materials

     1,392,715        -        -        1,392,715  

Technology

     3,056,170        2,941,478        -        5,997,648  

Utilities

     87,700        2,094,011        -        2,181,711  
         

Total Common Stocks

     $ 10,579,784        $13,816,100        $-        $ 24,395,884  

Warrants

     $-        $ 5,410        $-        $ 5,410  

Total Assets

     $ 10,579,784        $13,821,510        $-        $ 24,401,294  
         
                                     

Participation Fund

           
Government Sukuk(1)      $-        $18,199,191        $-        $ 18,199,191  
Corporate Sukuk(1)      -        44,969,331        -        44,969,331  
         

Total Assets

     $-        $63,168,522        $-        $ 63,168,522  

During the period ended February 28, 2019, 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, 2019, by risk category are as follows:

 

Derivative instruments and hedging activites Chart

 

Developing World Fund

 

Statement of

Asset and

Liabilities

Location

   Derivatives not
designated as
hedging
instruments
     Asset
Derivatives
 
Investments in
securities, at value
     Warrants        $5,410  
       Total        $5,410  
Statement of Operations effects

 

Developing World Fund

 

Derivatives not

designated as

hedging instruments

  

Realized

Gain

(Loss)

     Changes in
Unrealized
Gain (Loss)
 
Warrants      $ -          $1,873  
Total      $ -          $1,873  

4. Federal Income Taxes:

The cost basis of investments for federal income tax purposes at February 28, 2019, were as follows:

 

    

Income

Fund

 

 

     Growth Fund  
Cost of investments      $493,950,329        $ 475,809,752  
Gross unrealized
appreciation
     $808,625,804        $1,349,500,858  
Gross unrealized
depreciation
     $ 3,484,119        $ 174,530  
Net unrealized
appreciation (depreciation)
     $805,141,685        $1,349,326,328  

 

    
Developing
World Fund
 
 
    
Participation
Fund
 
 
Cost of investments     

 

$20,966,211

 

 

 

    

 

$
64,053,129

 

 
 

 

Gross unrealized appreciation      $ 5,281,911        $ 75,141  
Gross unrealized depreciation      $ 1,846,828        $ 959,748  
Net unrealized appreciation (depreciation)      $ 3,435,083        $ (884,607)  

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

 

  a.

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.

  b.

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 29, 2019

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 29, 2019

By:

/s/ Christopher Fankhauser

Christopher Fankhauser, Chief Financial Officer

Date: April 29, 2019