Sextant Global High Income Fund

As of September 28, 2020
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30-Day Yield
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Overview

Investment Style

  • Targeted to investors seeking high current income
  • Flexible allocation of stocks and bonds
  • Global scope, with a maximum of 50% US issuers
  • Diversified across markets, asset classes, countries, currencies, and industries
  • Balanced approach moderated by secondary objective of capital preservation
 
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Investment Objective

High income, with a secondary objective of capital preservation.

Principal Investment Strategies

The Global High Income Fund invests at least 80% of its net assets in a globally diversified portfolio of income-producing debt and equity securities, including preferred stocks, depositary receipts, and high yield bonds ("junk bonds"). It applies a consistent, value-oriented approach to security selection, basing investment decisions on current income and expected total return, adjusted for risk. It adjusts allocations to individual securities to manage the portfolio's fundamental risks, such as industry, country, currency, inflation, interest rate, liquidity, and credit cycle risks. In addition, the Fund will attempt to capitalize on periodic stress in leveraged credit markets, which may result in more volatile current income in exchange for more attractive long-term, risk-adjusted total return consistent with its investment objective. When selecting equities, the Fund principally invests in income-producing securities of companies with market capitalizations greater than $5 billion.

Under normal circumstances, the Fund invests its assets as follows:

  • No more than 50% in common stocks
  • No more than 50% in securities of US issuers
  • No more than 50% in bonds rated A3 or higher
  • No more than 33% in securities of emerging market issuers
 

Portfolio Managers


Bryce Fegley MS, CFA®, CIPM®
Portfolio Manager since 2012
Patrick Drum MBA, CFA®, CFP®
Deputy Portfolio Manager since 2020

Performance

Short Term Performance

As of August 31, 2020 Ticker 3 Month 6 Month YTD
Sextant Global High Income SGHIX 3.97% -1.68% -7.18%
S&P Global 1200 14.54% 15.04% 4.70%
Bloomberg Barclays Global HY Corp 8.11% 4.06% 2.34%

Average Annual Total Returns

Month-end, as of August 31, 2020 Ticker 1 Year 3 Year 5 Year 10 Year Expense Ratio² 30-Day Yield¹
Sextant Global High Income SGHIX -2.94% 1.73% 5.77% n/a 1.11% 3.22%
S&P Global 1200 16.75% 9.99% 11.09% 11.17% n/a n/a
Bloomberg Barclays Global HY Corp 6.07% 4.45% 6.15% 6.55% n/a n/a
Quarter-end, as of June 30, 2020 Ticker 1 Year 3 Year 5 Year 10 Year Expense Ratio² 30-Day Yield¹
Sextant Global High Income SGHIX -8.55% 2.15% 3.94% n/a 1.11% 3.59%
S&P Global 1200 3.17% 7.17% 7.56% 10.44% n/a n/a
Bloomberg Barclays Global HY Corp -0.12% 2.99% 4.45% 6.37% 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 27, 2020.

Growth of $10,000

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Sextant Global High Income Fund 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 Global 1200 Index is a global stock market index covering nearly 70% of the world's equity markets. The Bloomberg Global High Yield Corporate Bond Index is a rules-based, market-value weighted index engineered to measure the non-investment grade, fixed-rate, taxable, global corporate bond market. Investors cannot invest directly in the indices.

Distributions

Record Date Ex, Pay and
Reinvest Date
Ordinary
Income
Qualified
Income
Short-Term
Capital Gains
Long-Term
Capital Gains
Total Distributions
(per share)
12/18/2019 12/19/2019 $0.19250 $0.20840 $0.22900 $0.28640 $0.91630
12/26/2018 12/27/2018 $0.24300 $0.14900 $0.00 $0.00 $0.39200
12/28/2017 12/29/2017 $0.18159 $0.12258 $0.00 $0.00 $0.30418
11/29/2017 11/30/2017 $0.00411 $0.00168 $0.00 $0.00 $0.00578
12/29/2016 12/30/2016 $0.31285 $0.12778 $0.00 $0.00 $0.44063

The Sextant Global High Income Fund intends to distribute its net investment income and net realized capital gains, if any, to its shareowners. Distributions from income dividends and net capital gains are paid at the end of the year.

The Sextant Global High Income Fund began operations on March 30, 2012. Its entire dividend history is listed above.

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) 0.68%
Other Expenses 0.43%
Total Annual Fund Operating Expenses 1.11%
Fee Waiver and Expense Reimbursement -0.36%
Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement 0.75%

Saturna Capital, the Fund's adviser, has committed through March 31, 2021, 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 0.75%. 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).

Literature

Summary Prospectus

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Prospectus

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Annual Report

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Semi-Annual Report

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Statement of Additional Information

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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.

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. 

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.

High yield risk: Investing in 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.

Foreign investing risk: Foreign investing involves risks not normally associated with US securities. These risks include fluctuations in currency exchange rates, less public information about securities, less governmental market supervision, and lack of uniform financial, social, and political standards. Foreign investing heightens the risk of confiscatory taxation, seizure or nationalization of assets, currency controls, or adverse political or social developments that affect investments.

Emerging markets risk: The risks of investing in foreign securities typically are greater in less developed or emerging countries.

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.

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