Investment Objective
Current income and capital preservation.
Investment Approach
The Saturna Sustainable Bond Fund actively seeks issuers that demonstrate sustainable financial characteristics as well as a commitment to identifying and managing sustainability-related risks.
- Targeted to investors seeking capital preservation and current income
- Investment-grade emphasis with the ability to invest across the credit spectrum, including high-yield
- Flexible selection of duration, currencies, and issuer types
- Globally diversified
- Screens exclude security issuers primarily engaged in higher sustainability risk businesses; no alcohol, tobacco, pornography, weapons, gambling, or fossil fuel extraction
- Positive sustainability 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
Under normal conditions, the Fund invests at least 80% of its net assets in bonds of issuers located throughout the world (including emerging markets) that the Fund’s adviser believes demonstrate sustainable characteristics. The Fund typically invests in US and foreign government bonds, municipal bonds, asset-backed securities, high quality commercial paper, and bank obligations. For purposes of this investment policy, the Fund’s adviser (Saturna Capital Corporation) considers issuers with sustainable characteristics to be those issuers that are more established, consistently profitable, financially strong, and with robust policies in the areas of sustainability.
The Fund’s adviser employs a fundamental research driven approach to stock selection and portfolio construction. The adviser’s focus on sustainability considers financial and non-financial characteristics from diverse sources including regulatory filings, market data, and data supplied by third-party vendors. The adviser uses that information to identify issuers with strong balance sheets, capable management teams with a track record of success, good cash flow, prospects for sustainable above-average earnings growth, and to assess issuers’ business models, over the long term.
The Fund’s adviser employs a proprietary sustainable rating system based on its own, as well as third-party, data to identify issuers believed to present low risks in sustainability. The use of third-party data does not include third-party sustainability ratings or criteria established by third parties for third-party ratings. The Fund’s sustainability evaluation process considers risks and opportunities holistically, meaning an issuer will not necessarily be excluded from investment due to any one particular factor if the overall analysis results in a favorable evaluation by the adviser. The Fund’s adviser also uses negative screening to exclude security issuers primarily engaged in higher sustainability risk businesses such as alcohol, tobacco, pornography, weapons, gambling, and fossil fuel exploration, production, or refining. The Fund generally does not invest in any issuer with exposure to the foregoing businesses, but may invest in an issuer if the issuer is not primarily engaged in higher sustainability risk businesses.
Under normal conditions, the Fund maintains a dollar-weighted average maturity of three years or more, invests at least 65% of its assets in bonds within the four highest grades (AAA, AA, A, or BBB) at the time of purchase, and may invest up to 35% in unrated and high-yield bonds (“junk bonds”).
|
Ticker | 3 Month | 6 Month | YTD |
|---|---|---|---|---|
| Saturna Sustainable Bond | SEBFX | 2.37% | -0.44% | 2.37% |
| FTSE World BIG Bond Index | SBWAU | 2.80% | -2.28% | 2.80% |
| MSCI All Country World Index | GDUEACWF | -1.22% | -2.10% | -1.22% |
|
The FTSE WorldBIG Bond Index is a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed-income markets. Investors cannot invest directly in the Index | ||||
|
Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio2 | 30-Day Yield1 |
|---|---|---|---|---|---|---|---|
| Saturna Sustainable Bond | SEBFX | 1.49% | 1.00% | 1.21% | 1.34% | 0.81% | 4.62% |
| FTSE World BIG Bond Index | SBWAU | 3.20% | -1.49% | -1.61% | 0.56% | n/a | n/a |
| MSCI All Country World Index | GDUEACWF | 7.63% | 7.42% | 15.71% | 9.39% | 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. The FTSE WorldBIG Bond Index is a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed income markets. The MSCI All Country World Index covers approximately 85% of the global investable universe, with large- and mid-cap representation across 23 developed market and 23 emerging market countries. Investors cannot invest directly in the indices. 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 31, 2025. | |||||||
|
Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio2 | 30-Day Yield1 |
|---|---|---|---|---|---|---|---|
| Saturna Sustainable Bond | SEBFX | 1.49% | 1.00% | 1.21% | 1.34% | 0.81% | 4.62% |
| FTSE World BIG Bond Index | SBWAU | 3.20% | -1.49% | -1.61% | 0.56% | n/a | n/a |
| MSCI All Country World Index | GDUEACWF | 7.63% | 7.42% | 15.71% | 9.39% | 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. The FTSE WorldBIG Bond Index is a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed income markets. The MSCI All Country World Index covers approximately 85% of the global investable universe, with large- and mid-cap representation across 23 developed market and 23 emerging market countries. Investors cannot invest directly in the indices. 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 31, 2025. | |||||||
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.
Holdings
as of 03/31/2025
Top Ten Holdings
| Holding | % of Net Assets |
|---|---|
| State Street Corp | 4.4% |
| Munich RE | 4.4% |
| Masdar Abu Dhabi | 4.3% |
| Koninklijke KPN | 4.2% |
| Canadian Imperial Bank | 4.2% |
| Holding | % of Net Assets |
|---|---|
| AXA | 4.2% |
| Cash & Equivalents | 3.8% |
| First Abu Dhabi Bank PJSC | 3.7% |
| United Utilities | 3.6% |
| Asian Development Bank | 3.6% |
*Current portfolio holdings may not be indicative of future portfolio holdings.
1 Percentage of total investments includes all stocks, plus cash minus all short positions.
2 Total represents the difference between the long exposure and the short exposure, which produces the net exposure.
| Holding | Market Value | Quantity |
|---|---|---|
| State Street Corp | $1,810,111 | 2,000,000 |
| Munich RE | $1,779,999 | 2,000,000 |
| Masdar Abu Dhabi | $1,754,218 | 1,750,000 |
| Koninklijke KPN | $1,735,392 | 1,500,000 |
| Canadian Imperial Bank | $1,734,274 | 2,500,000 |
| AXA | $1,699,187 | 1,700,000 |
| Cash & Equivalents | $1,548,702 | 0 |
| First Abu Dhabi Bank PJSC | $1,522,760 | 1,500,000 |
| United Utilities | $1,480,476 | 1,400,000 |
| Asian Development Bank | $1,468,496 | 9,000,000 |
| MAF Global Securities | $1,452,500 | 1,400,000 |
| Natura Cosmeticos SA | $1,363,658 | 1,500,000 |
| INTL BK RECON & DEVELOP | $1,339,527 | 6,000,000,000 |
| Starbucks | $1,172,316 | 1,200,000 |
| Nokia OYJ | $1,118,775 | 1,000,000 |
| FS Luxembourg SARL | $1,025,881 | 1,000,000 |
| Coty/HFC Prestige 6.625 | $1,023,215 | 1,000,000 |
| Koninklijke Philips NV | $1,002,683 | 1,000,000 |
| Iron Mountain UK PLC | $955,254 | 750,000 |
| INTL BK RECON & DEVELOP | $940,174 | 20,000,000 |
| Jackson Cnty Mo Indl Dev Auth Rev | $900,000 | 900,000 |
| Intl Finance Corp | $751,148 | 3,000,000,000 |
| Telecom Italia SPA | $747,056 | 750,000 |
| United Kingdom GILT | $725,353 | 750,000 |
| Iron Mountain Inc | $715,695 | 750,000 |
| NOKIA | $540,328 | 500,000 |
| Holding | Market Value | Quantity |
|---|---|---|
| Stora Enso | $531,587 | 500,000 |
| Commonwealth Bank Australia | $529,929 | 850,000 |
| Export-Import Bank Korea | $512,794 | 500,000 |
| WLB Asset II C PTE Ltd | $465,774 | 482,417 |
| Queensland Treasury | $442,381 | 750,000 |
| Republic of Chile | $428,545 | 500,000 |
| Federal Home Loan Bank | $424,901 | 500,000 |
| Prologis LP | $418,444 | 500,000 |
| RELX | $391,453 | 400,000 |
| Perusahaan Penerbit SBSN | $349,006 | 500,000 |
| Toronto-Dominion Bank | $343,524 | 500,000 |
| INTL BK RECON & DEVELOP | $326,508 | 2,000,000 |
| African Development Bank | $323,871 | 250,000 |
| Stora Enso Oyj | $318,952 | 300,000 |
| MAF Sukuk | $296,318 | 300,000 |
| California St | $295,000 | 295,000 |
| Sheridan Co Redev Agy Incr Revenue | $270,000 | 270,000 |
| Connecticut St Hsg Fin Auth | $252,494 | 250,000 |
| Connecticut St Hsg Fin Auth Mtge | $251,689 | 250,000 |
| Novartis Capital Corp | $248,054 | 250,000 |
| KFW | $239,893 | 5,000,000 |
| Telecom Italia Capital | $239,579 | 250,000 |
| Intl Finance Corp | $234,844 | 5,000,000 |
| Rochester MN MF Revenue | $200,000 | 200,000 |
| Roche | $196,658 | 200,000 |
| Coty Inc | $48,830 | 49,000 |
Sector Allocation
| Sector | % of Net Assets |
|---|---|
| Financials | 26.9% |
| Government | 22.6% |
| Real Estate | 9.4% |
| Communications | 6.7% |
| Consumer Discretionary | 5.4% |
| Energy | 4.3% |
| Technology | 4.1% |
| Sector | % of Net Assets |
|---|---|
| Other | 3.8% |
| Utilities | 3.6% |
| Health Care | 3.5% |
| Industrials | 3.5% |
| Consumer Staples | 3.5% |
| Materials | 2.1% |
| Government Bonds | 0.8% |
*Current portfolio holdings may not be indicative of future portfolio holdings.
1 Percentage of total investments includes all stocks, plus cash minus all short positions.
2 Total represents the difference between the long exposure and the short exposure, which produces the net exposure.
Security and sector weightings are shown as a percentage of total net assets.
Distributions
| Record Date | Ex, Pay and Reinvest Date | Ordinary Income | Qualified Income | Short-Term Capital Gains | Long-Term Capital Gains | Total Distributions (per share) |
|---|---|---|---|---|---|---|
| 12/18/2024 | 12/19/2024 | $0.291 | $0.00 | $0.00 | $0.00 | $0.291 |
| 12/20/2023 | 12/21/2023 | $0.34 | $0.00 | $0.00 | $0.00 | $0.34 |
| 12/14/2022 | 12/15/2022 | $0.058 | $0.00 | $0.00 | $0.00 | $0.058 |
| 12/15/2021 | 12/16/2021 | $0.048 | $0.00 | $0.004 | $0.182 | $0.234 |
| 01/26/2021 | 01/27/2021 | $0.011025894 | $0.00 | $0.00 | $0.00 | $0.011025894 |
| 09/30/2020 | 10/01/2020 | $0.00062934387 | $0.00 | $0.00 | $0.00 | $0.00062934387 |
| 08/31/2020 | 09/01/2020 | $0.01904613792 | $0 | $0 | $0 | $0.01904613792 |
| 08/27/2020 | 08/28/2020 | $0.00251655916 | $0 | $0 | $0 | $0.00251655916 |
| 06/04/2020 | 06/05/2020 | $0.00340015583 | $0 | $0 | $0 | $0.00340015583 |
| 03/31/2020 | 04/01/2020 | $0.00701107861 | $0 | $0 | $0 | $0.00701107861 |
| 02/28/2020 | 03/02/2020 | $0.01800161823 | $0 | $0 | $0 | $0.01800161823 |
| 01/31/2020 | 02/03/2020 | $0.01800042952 | $0 | $0 | $0 | $0.01800042952 |
The Saturna Sustainable Bond Fund intends to distribute its net investment income and net realized capital gains, if any, to its shareowners. The Fund pays income dividends daily, which are reinvested or distributed monthly. As a result of its investment strategy, the Fund expects that its dividends will consist primarily of ordinary income.
Distributions for the last four 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.
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)
| Management Fees | 0.55% |
| Other Expenses | 0.26% |
| Total Annual Fund Operating Expenses | 0.81% |
| Fee Waiver and Expense Reimbursement1 | -0.16% |
| Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement | 0.65% |
1 The Adviser has committed through March 31, 2026, to waive fees and/ or reimburse expenses to the extent necessary to ensure that the Fund’s net operating expenses, excluding brokerage commissions, interest, taxes, and extraordinary expenses, do not exceed the net operating expense ratio of 0.65%. This expense limitation agreement may be changed or terminated only with approval of the Board of Trustees.
Investment Minimum
| The minimum initial investment for Investor Shares is $100 (for tax-sheltered accounts, there is no minimum). |