Amana Income Fund
Overview
Investment Style
The Amana Income 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 industries and companies
- Targeted to investors seeking current income and preservation of capital
- Generally large-cap, but can invest in any capitalization domestic and foreign stocks
Investment Objective
Current income and preservation of capital, consistent with Islamic principles. Current income is its primary objective.
Principal Investment Strategies
The Income Fund invests primarily in dividend-paying common stocks, including foreign stocks. 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 Income Fund does not make any investments that pay interest. Islamic principles discourage speculation, and the Fund tends to hold investments for several years.
The Income Fund diversifies its investments across industries and companies, and principally follows a large-cap value investment style. Common stock purchases are restricted to dividend-paying companies. The Fund seeks companies demonstrating both Islamic and sustainable characteristics. The Fund’s adviser (Saturna Capital Corporation) 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.
It is the policy of the Income Fund, under normal circumstances, to invest at least 80% of its total net assets in income-producing securities, primarily dividend-paying common stocks.
Portfolio Managers
Portfolio Manager since 2020
Deputy Portfolio Manager since 2012
Deputy Portfolio Manager since 2020
Performance
Short Term Performance
| As of April 30, 2023 | Ticker | 3 Month | 6 Month | YTD | |||
|---|---|---|---|---|---|---|---|
| Amana Income Investor Shares | AMANX | 3.84% | 8.90% | 4.76% | |||
| Amana Income Institutional Shares | AMINX | 3.88% | 9.00% | 4.83% | |||
| S&P 500 Total Return | 2.72% | 8.63% | 9.17% | ||||
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 Income Investor Shares | AMANX | 6.28% | 13.50% | 11.04% | 9.91% | 1.01% | 1.01% | ||||
| Amana Income Institutional Shares | AMINX | 6.53% | 13.75% | 11.28% | n/a | 0.77% | 1.25% | ||||
| S&P 500 Total Return | 2.66% | 14.55% | 11.45% | 12.20% | 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 Income Investor Shares | AMANX | 0.09% | 16.84% | 9.95% | 9.91% | 1.01% | 1.03% | ||||
| Amana Income Institutional Shares | AMINX | 0.33% | 17.10% | 10.20% | n/a | 0.77% | 1.29% | ||||
| S&P 500 Total Return | -7.73% | 18.60% | 11.17% | 12.22% | 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 S&P 500 is an index comprised of 500 widely held common stocks considered to be representative of the US stock market in general. The Russell 1000 Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
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 (AMANX) | ||||||
| 05/17/2023 | 05/18/2023 | $0.00 | $0.30000 | $0.00 | $0.00 | $0.30000 |
| 12/14/2022 | 12/15/2022 | $0.00 | $0.25000 | $0.00 | $3.97500 | $4.22500 |
| 05/25/2022 | 05/26/2022 | $0.00 | $0.31000 | $0.00 | $0.00 | $0.31000 |
| 12/15/2021 | 12/16/2021 | $0.00 | $0.24000 | $0.00 | $2.59300 | $2.83300 |
| 05/26/2021 | 05/27/2021 | $0.00 | $0.24000 | $0.00 | $0.00 | $0.24000 |
| 12/16/2020 | 12/17/2020 | $0.00 | $0.32000 | $0.00 | $3.05560 | $3.37560 |
| 05/27/2020 | 05/28/2020 | $0.00 | $0.31000 | $0.00 | $0.00 | $0.31000 |
| 12/18/2019 | 12/19/2019 | $0.00 | $0.34500 | $0.00 | $3.46760 | $3.81260 |
| Institutional Shares (AMINX) | ||||||
| 05/17/2023 | 05/18/2023 | $0.00 | $0.35000 | $0.00 | $0.00 | $0.35000 |
| 12/14/2022 | 12/15/2022 | $0.00 | $0.39000 | $0.00 | $3.97500 | $4.36500 |
| 05/25/2022 | 05/26/2022 | $0.00 | $0.38000 | $0.00 | $0.00 | $0.38000 |
| 12/15/2021 | 12/16/2021 | $0.00 | $0.39000 | $0.00 | $2.59300 | $2.98300 |
| 05/26/2021 | 05/27/2021 | $0.00 | $0.30000 | $0.00 | $0.00 | $0.30000 |
| 12/16/2020 | 12/17/2020 | $0.00 | $0.45000 | $0.00 | $3.05560 | $3.50560 |
| 05/27/2020 | 05/28/2020 | $0.00 | $0.36000 | $0.00 | $0.00 | $0.36000 |
| 12/18/2019 | 12/19/2019 | $0.00 | $0.47800 | $0.00 | $3.46760 | $3.94560 |
The Amana Income Fund intends to distribute its net investment income and net realized capital gains, if any, to its shareowners. Distributions from net capital gains and income dividends are paid at the end of December and May.
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.
Distributions for the last five years are listed in the table above. For prior distributions, please contact a Saturna representative.
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 (AMANX) | Institutional Shares (AMINX) | |
| Management Fees | 0.75% | 0.75% |
| Distribution (12b-1) Fees | 0.25% | None |
| Other Expenses | 0.01% | 0.02% |
| Total Annual Fund Operating Expenses | 1.01% | 0.77% |
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 Income Fund shares rises and falls as the value of the securities 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 markets as well as the fortunes of the industries and companies in which the Fund invests.
Investment strategy risk: Islamic principles restrict the Income Fund's ability to invest in certain market sectors, such as financial companies and conventional fixed-income 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 Income Fund may invest in securities that are not traded in the United States when market conditions or investment opportunities arise that, in the judgment of the adviser (Saturna Capital Corporation), warrant such investment. 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.