Spotlight On: Sextant International Fund Guided by the Visionary Investment Approach of Dan Kim
April 26, 2024 – The Sextant International Fund, which has achieved impressive three-year, five-year, and 10-year returns compared to its US Fund Foreign Large Growth category peers, was recently rated 5 Stars by Morningstar for the 3-year period ended March 31, 2024 for both the Investor Shares and Z Shares.
The Sextant International Fund’s performance stands as a testament to the discerning investment philosophy of its lead portfolio manager, Dan Kim. With a track record of identifying high-potential opportunities across global markets, Kim’s approach is well-suited to investors seeking growth and sustainability.
Kim’s investment strategy is rooted in comprehensive fundamental research and a nuanced understanding of economic indicators, helping him identify high-quality companies poised for significant cash flow inflection points. This forward-looking approach targets firms transitioning from capital expenditure cycles to phases of cash flow harvest, presenting a ripe opportunity for investors.
Identifying companies that are on the cusp of transformational growth and overlooked by most conventional growth and value managers is central to Kim’s philosophy. "Alpha is better defined as the delta between market perception and reality . . . the greater this perception gap, the greater the alpha potential," Kim said. His method has proven effective in navigating the Sextant International Fund through the volatile waters of international investing by delivering consistent, repeatable, and predictable risk-adjusted returns.
A distinguishing factor of Kim’s methodology is his dynamic investment time horizon. Unlike the traditional three-to-five-year outlook prevalent among Kim's peers, his flexible approach allows him to capitalize on opportunities that may require a longer maturity period. This adaptability has enabled the Sextant International Fund to embrace a broader spectrum of investment opportunities, further enhancing its performance and appeal to long-term investors.
Kim’s background in financial engineering and experience with leading global corporations like Samsung Electronics has led to a rich understanding of both the technical and practical aspects of investment management. His previous portfolio management success, growing a global international fund from less than $1 million to nearly $1 billion, speaks volumes about his expertise and the trust investors place in his vision.
Learn more about the Sextant International Fund.
| Average Annual Total Returns as of 03/31/2024 (Net of Fees) | |||||
| 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio | |
| Sextant International Investor Shares (SSIFX) | 19.82% | 7.31% | 9.25% | 7.64% | 1.00%1 |
| Sextant International Z Shares (SIFZX) | 20.16% | 7.56% | 9.50% | n/a | 0.77%1 |
| MSCI EAFE Index | 15.77% | 5.28% | 7.82% | 5.29% | n/a |
1 Expense ratios shown for Sextant International Fund are as stated in the Fund's most recent prospectus or summary prospectus dated March 29, 2024. Effective March 31, 2023, the management fee paid to Saturna Capital Corporation, the Fund’s adviser, for providing services to the Fund is 0.50% of average daily net assets of the Fund. Prior to this date, the management fee consisted of a base fee at an annual rate of 0.50% of the Fund’s average net assets and a positive or negative performance adjustment of up to an annual rate of 0.20% (applied to the average assets at the end of each month), resulting in a total minimum fee of 0.30% and a total maximum fee of 0.70%. The average monthly management fee for the year ended November 30, 2022, was 0.74% (annual rate).
The MSCI EAFE Index is an equity index which captures large and mid cap representation across 21 Developed Markets countries around the world, excluding the US and Canada. The index is comprehensive, covering approximately 85% of the free float-adjusted market capitalization in each country. The MSCI Indices are produced by Morgan Stanley Capital International (MSCI). Investors cannot invest directly in the indices.
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of investments in the Fund fluctuate daily and an investor's shares, when redeemed, may be worth more or less than the original cost and you may lose money. Current performance may be higher or lower than performance data quoted herein. Performance data current to the most recent month-end may be obtained by calling toll-free 1-800-728-8762 or by visiting our Month-end Performance page.
The Sextant International Fund involves risks not typically associated with investing in US securities. These include fluctuations in currency exchange rates, less public information about securities, less governmental market supervision, and lack of uniform financial, social, and political standards.
Investing involves risk, including possible loss of principal. Generally, an investment that offers a higher potential return will have a higher risk of loss. Stock prices fluctuate, sometimes quickly and significantly, for a broad range of reasons that may affect individual companies, industries, or sectors. Investing in foreign securities involves risks not typically associated directly with investing in US securities. These risks include fluctuations in exchange rates of foreign currencies; less public information with respect to issuers of securities; less governmental supervision of exchanges, issuers, and brokers; and lack of uniform accounting, auditing, and financial reporting standards. There is also a risk of adverse political, social, or diplomatic developments that affect investment in foreign countries.
Morningstar Ratings™
As of March 31, 2024
| Morningstar Ratings™A | Overall | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|---|
| Sextant International Fund — "Foreign Large Growth" Category | |||||
| Investor Shares (SSIFX) | ★ ★ ★ ★ | n/a | ★ ★ ★ ★ ★ | ★ ★ ★ ★ | ★ ★ ★ ★ |
| % Rank in Category | n/a | 11 | 3 | 22 | 14 |
| Z Shares (SIFZX) | ★ ★ ★ ★ | n/a | ★ ★ ★ ★ ★ | ★ ★ ★ ★ | ☆ ☆ ☆ ☆ ☆ |
| % Rank in Category | n/a | 11 | 3 | 17 | 11 |
| Number of Funds in Category | 383 | 407 | 383 | 327 | 223 |
Performance data quoted herein represents past performance and does not guarantee future results.
© 2024 Morningstar®. All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
A Morningstar Ratings™ ("Star Ratings") are as of March 31, 2024. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance (not including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
% Rank in Category is the fund's percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.
Unshaded stars indicate extended performance. Extended performance is an estimate based on the performance of a fund's oldest share class, adjusted for fees.
The Sextant International Funds offer two share classes – Investor Shares and Z Shares, each of which has different expense structures.
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$8.5 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.