Sextant Bond Income Fund
Overview
Investment Style
- Targeted to investors seeking current income
- Dollar-weighted average maturity of ten years or more
- Diversified across industries and companies
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. Under normal circumstances, the Fund maintains a dollar-weighted average maturity of 10 years or more. The Fund invests at least 65% of net assets in bonds rated within the three highest grades (Aaa, Aa, or A) and may not invest in a bond rated at time of purchase below the fourth highest grade (Baa).
Portfolio Managers
Portfolio Manager since 2020
Deputy Portfolio Manager since 2020
Performance
Short Term Performance
| As of September 30, 2021 | Ticker | 3 Month | 6 Month | YTD | |||
|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -0.35% | 3.68% | -2.94% | |||
| FTSE US BIG Bond | 0.02% | 1.98% | -1.58% | ||||
Average Annual Total Returns
| Month-end, as of September 30, 2021 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -2.40% | 5.57% | 3.04% | 3.30% | 0.63% | 1.46% | ||||
| FTSE US BIG Bond | -0.82% | 5.45% | 3.00% | 3.04% | n/a | n/a | |||||
| Quarter-end, as of September 30, 2021 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant Bond Income | SBIFX | -2.40% | 5.57% | 3.04% | 3.30% | 0.63% | 1.46% | ||||
| FTSE US BIG Bond | -0.82% | 5.45% | 3.00% | 3.04% | 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, 2021.
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) |
|---|---|---|---|---|---|---|
| 09/29/2021 | 09/30/2021 | $0.01011 | $0.00 | $0.00 | $0.00 | $0.01011 |
| 08/30/2021 | 08/31/2021 | $0.01049 | $0.00 | $0.00 | $0.00 | $0.01049 |
| 07/29/2021 | 07/30/2021 | $0.01085 | $0.00 | $0.00 | $0.00 | $0.01085 |
| 06/29/2021 | 06/30/2021 | $0.01061 | $0.00 | $0.00 | $0.00 | $0.01061 |
| 05/27/2021 | 05/28/2021 | $0.01075 | $0.00 | $0.00 | $0.00 | $0.01075 |
| 04/29/2021 | 04/30/2021 | $0.01023 | $0.00 | $0.00 | $0.00 | $0.01023 |
| 03/30/2021 | 03/31/2021 | $0.01029 | $0.00 | $0.00 | $0.00 | $0.01029 |
| 02/25/2021 | 02/26/2021 | $0.00974 | $0.00 | $0.00 | $0.00 | $0.00974 |
| 01/28/2021 | 01/29/2021 | $0.01082 | $0.00 | $0.00 | $0.00 | $0.01082 |
| 12/30/2020 | 12/31/2020 | $0.01071 | $0.00 | $0.00 | $0.00 | $0.01071 |
| 11/27/2020 | 11/30/2020 | $0.01025 | $0.00 | $0.00 | $0.00 | $0.01025 |
| 10/29/2020 | 10/30/2020 | $0.01043 | $0.00 | $0.00 | $0.00 | $0.01043 |
| 09/29/2020 | 09/30/2020 | $0.00975 | $0.00 | $0.00 | $0.00 | $0.00975 |
| 08/28/2020 | 08/31/2020 | $0.01097 | $0.00 | $0.00 | $0.00 | $0.01097 |
| 07/30/2020 | 07/31/2020 | $0.01140 | $0.00 | $0.00 | $0.00 | $0.01140 |
| 06/29/2020 | 06/30/2020 | $0.01139 | $0.00 | $0.00 | $0.00 | $0.01139 |
| 05/28/2020 | 05/29/2020 | $0.01207 | $0.00 | $0.00 | $0.00 | $0.01207 |
| 04/29/2020 | 04/30/2020 | $0.01170 | $0.00 | $0.00 | $0.00 | $0.01170 |
| 03/30/2020 | 03/31/2020 | $0.01251 | $0.00 | $0.00 | $0.00 | $0.01251 |
| 02/27/2020 | 02/28/2020 | $0.01185 | $0.00 | $0.00 | $0.00 | $0.01185 |
| 01/30/2020 | 01/31/2020 | $0.01274 | $0.00 | $0.00 | $0.00 | $0.01274 |
| 12/30/2019 | 12/31/2019 | $0.01298 | $0.00 | $0.00 | $0.00 | $0.01298 |
| 11/27/2019 | 11/29/2019 | $0.01239 | $0.00 | $0.00 | $0.00 | $0.01239 |
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 Fees (vary with performance) | 0.32% |
| Other Expenses | 0.31% |
| Total Annual Fund Operating Expenses | 0.63% |
| Fee Waiver and Expense Reimbursement | -0.15% |
| Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement | 0.48% |
Saturna Capital, the Fund's adviser, has committed through March 31, 2022, 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.
For the fiscal year ended November 30, 2020, the adviser reimbursed additional expenses of the Sextant Bond Income Fund such that the net operating expense ratio was 0.48%.
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. The market value of securities will fluctuate, sometimes significantly and unpredictably, with stocks generally being more volatile than bonds. When you redeem your shares, they may be worth more or less than what you paid for them. Only consider investing in the Fund if you are willing to accept the risk that you may lose money.
Interest rate risk: Investing in bonds includes the risk that as interest rates rise, bond prices will fall. Conversely, during periods of declining interest rates bond prices generally rise, but bond issuers may call or prepay the bond and reissue debt at lower interest rates. The longer a bond's maturity, the more sensitive the bond is to interest rate changes.
Credit risk: Investing in bonds includes the risk that an issuer will not pay interest or principal when due, or the issuer may default altogether. If an issuer's credit quality is perceived to decline, the value and liquidity of the issuer's bonds may also decline.
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.