Sextant Bond Income Fund
Overview
Investment Objective
Current income.
Principal Investment Strategies
The Bond Income Fund invests at least 80% of its net assets in bonds, including corporate and government bonds. The Fund invests primarily in US bonds. Under normal circumstances, the Fund maintains a dollarweighted average maturity of six years or more. The Fund invests at least 80% of its net assets in bonds rated within the four highest grades assigned by a national bond rating agency (e.g., Standard & Poor’s: AAA, AA, A, or BBB) at the time of purchase, inclusive of cash, and may invest up to 20% in unrated and high-yield bonds (“junk bonds”). Investment-grade investments may include “split rated” securities, which are securities that are rated as investment grade by at least one credit rating agency but rated below investment grade by another agency.
Investment Style
- Targeted to investors seeking current income
- Dollar-weighted average maturity of ten years or more
- Diversified across industries and companies
Portfolio Managers
Portfolio Manager since 2020
Deputy Portfolio Manager since 2020
Performance
Short Term Performance
| As of August 31, 2023 | Ticker | 3 Month | 6 Month | YTD | |||
|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -1.10% | 1.46% | 1.46% | |||
| FTSE US BIG Bond | -1.05% | 0.88% | 1.41% | ||||
| Bloomberg US Aggregate Index | -1.06% | 0.95% | 1.37% | ||||
Average Annual Total Returns
| Month-end, as of August 31, 2023 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -2.06% | -6.15% | -0.22% | 1.37% | 0.58% | 2.95% | ||||
| FTSE US BIG Bond | -1.24% | -4.47% | 0.49% | 1.48% | n/a | n/a | |||||
| Bloomberg US Aggregate Index | -1.19% | -4.41% | 0.49% | 1.48% | n/a | n/a | |||||
| Quarter-end, as of June 30, 2023 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -1.82% | -5.47% | 0.15% | 1.42% | 0.58% | 2.87% | ||||
| FTSE US BIG Bond | -0.97% | -4.03% | 0.77% | 1.51% | n/a | n/a | |||||
| Bloomberg US Aggregate Index | -0.94% | -3.96% | 0.77% | 1.51% | 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 31, 2023.
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 FTSE US BIG Bond Index is a broad-based index of medium and long-term investment grade bond prices that reflects no deductions for fees, expenses, or taxes. Investors cannot invest directly in the index.
Distributions
| Record Date | Ex, Pay and Reinvest Date |
Ordinary Income |
Qualified Income |
Short-Term Capital Gains |
Long-Term Capital Gains |
Total Distributions (per share) |
|---|---|---|---|---|---|---|
| 08/30/2023 | 08/31/2023 | $0.01091 | $0.00 | $0.00 | $0.00 | $0.01091 |
| 07/28/2023 | 07/31/2023 | $0.01074 | $0.00 | $0.00 | $0.00 | $0.01074 |
| 06/29/2023 | 06/30/2023 | $0.01029 | $0.00 | $0.00 | $0.00 | $0.01029 |
| 05/30/2023 | 05/31/2023 | $0.01075 | $0.00 | $0.00 | $0.00 | $0.01075 |
| 04/27/2023 | 04/28/2023 | $0.01038 | $0.00 | $0.00 | $0.00 | $0.01038 |
| 03/30/2023 | 03/31/2023 | $0.01076 | $0.00 | $0.00 | $0.00 | $0.01076 |
| 02/27/2023 | 02/28/2023 | $0.00974 | $0.00 | $0.00 | $0.00 | $0.00974 |
| 01/30/2023 | 01/31/2023 | $0.01058 | $0.00 | $0.00 | $0.00 | $0.01058 |
| 12/29/2022 | 12/30/2022 | $0.01113 | $0.00 | $0.00 | $0.00 | $0.01113 |
| 11/29/2022 | 11/30/2022 | $0.01016 | $0.00 | $0.00 | $0.00 | $0.01016 |
| 10/28/2022 | 10/31/2022 | $0.01053 | $0.00 | $0.00 | $0.00 | $0.01053 |
| 09/29/2022 | 09/30/2022 | $0.01007 | $0.00 | $0.00 | $0.00 | $0.01007 |
| 08/30/2022 | 08/31/2022 | $0.01065 | $0.00 | $0.00 | $0.00 | $0.01065 |
| 07/28/2022 | 07/29/2022 | $0.01073 | $0.00 | $0.00 | $0.00 | $0.01073 |
| 06/29/2022 | 06/30/2022 | $0.01040 | $0.00 | $0.00 | $0.00 | $0.01040 |
| 05/27/2022 | 05/31/2022 | $0.01054 | $0.00 | $0.00 | $0.00 | $0.01054 |
| 04/28/2022 | 04/29/2022 | $0.00990 | $0.00 | $0.00 | $0.00 | $0.00990 |
| 03/30/2022 | 03/31/2022 | $0.01026 | $0.00 | $0.00 | $0.00 | $0.01026 |
| 02/25/2022 | 02/28/2022 | $0.00907 | $0.00 | $0.00 | $0.00 | $0.00907 |
| 01/28/2022 | 01/31/2022 | $0.00994 | $0.00 | $0.00 | $0.00 | $0.00994 |
| 12/30/2021 | 12/31/2021 | $0.01013 | $0.00 | $0.00 | $0.00 | $0.01013 |
| 11/29/2021 | 11/30/2021 | $0.01038 | $0.00 | $0.00 | $0.00 | $0.01038 |
| 10/28/2021 | 10/29/2021 | $0.01039 | $0.00 | $0.00 | $0.00 | $0.01039 |
The Sextant Bond Income 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 two 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 | |
| Management Fees1 | 0.50% |
| Other Expenses | 0.42% |
| Total Annual Fund Operating Expenses | 0.92% |
| Fee Waiver and Expense Reimbursement2 | -0.27% |
| Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement | 0.65% |
1 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 0.61% (annual rate).
2 The adviser has committed through March 31, 2024, 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.
When you buy shares through a financial intermediary, that intermediary may charge a transaction fee or commission which is not reflected in the expenses table. Purchases and redemptions of Fund shares will be made at the daily net asset value established by the Fund (before imposition of a commission).
Minimum Initial Investment
The minimum initial investment is $1,000 (for tax-sheltered accounts, there is no minimum).
Principal Risks of Investing in the Fund
Market risk: The value of the Fund’s shares rises and falls as the market 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.
Interest rate risk: Changes in interest rates impact prices of fixed-income and related investments. When interest rates rise, the value of fixed-income investments (paying a lower rate of interest) generally will fall. Investments with shorter terms may have less interest rate risk, but generally have lower returns and, because of the more frequent maturity dates, may involve higher re-investment costs.
Credit risk: Corporate and sovereign issuers of the notes and certificates in which the Fund invests may not be able or willing to make payments when due, which may lead to default or restructuring of the investment. In addition, if the market perceives deterioration in the creditworthiness of an issuer, the value and liquidity of the issuer’s securities may decline.
High yield risk: Bonds that are unrated or rated below investment grade, which are known as “junk bonds,” typically offer higher yields to compensate investors for increased credit risk. Issuers of high-yield securities generally are not as strong financially and are more vulnerable to changes that could affect their ability to make interest and principal payments. High-yield securities generally are more volatile and less liquid (harder to sell), which may make such securities more difficult to value. Unrated securities present additional uncertainty because of the difficulties in determining their comparability to rated securities. Unrated securities are often comparable to below investment-grade securities.
Liquidity risk: Liquidity risk exists when particular investments are difficult to sell and may be more difficult to value. If the Fund is forced to sell these investments during unfavorable conditions to meet redemptions or for other cash needs, the Fund may lose money on its investments. As a result, the Fund may be unable to achieve its objective.
Large transaction risk: A significant percentage of the Fund’s shares may be owned or controlled by the adviser and its affiliates or other large shareholders. Accordingly, the Fund is subject to the potential for large-scale inflows and outflows as a result of purchases and redemptions of its shares by such shareholders. These inflows and outflows could negatively affect the Fund’s net asset value and performance.