Sextant International Fund
Overview
Investment Objective
Long-term capital growth.
Principal Investment Strategies
The International Fund diversifies its investments among many countries, predominantly those with mature markets (such as Europe and Canada). The Fund may also invest in companies in emerging markets. The Fund invests at least 65% of its net assets in equity securities of companies with their headquarters, and at least half of their assets and earnings, outside the US. The Fund diversifies its investments across industries, companies, and countries. The Fund looks for companies with growing revenues and earnings, favoring companies trading for less than the adviser’s assessment of intrinsic value, which typically means companies with low price/earning multiples, low price to cash flow, and higher dividend yields. The Fund principally invests in securities of companies with market capitalizations greater than $1 billion.
Investment Style
- Targeted to investors seeking long-term capital growth
- Generally large-cap, and can invest in foreign stocks with market capitalizations greater than $1 billion
- Diversified across industries, companies, and countries
- Value investment style, favoring income-producing securities of more seasoned companies
Portfolio Managers
Portfolio Manager since 2023
Deputy Portfolio Manager since 2023
Performance
Short Term Performance
| As of August 31, 2024 | Ticker | 3 Month | 6 Month | YTD | |||
|---|---|---|---|---|---|---|---|
| Sextant International Investor Shares | SSIFX | 3.13% | 3.62% | 10.08% | |||
| Sextant International Z Shares | SIFZX | 3.16% | 3.74% | 10.23% | |||
| MSCI EAFE | 4.61% | 9.74% | 12.42% | ||||
Average Annual Total Returns (Net of Fees)
| Month-end, as of August 31, 2024 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant International Investor Shares | SSIFX | 23.03% | 1.62% | 8.63% | 7.54% | 1.00% | 0.41% | ||||
| Sextant International Z Shares | SIFZX | 23.27% | 1.85% | 8.87% | n/a | 0.77% | 0.63% | ||||
| MSCI EAFE | 19.99% | 4.68% | 9.13% | 5.70% | n/a | n/a | |||||
| Quarter-end, as of June 30, 2024 | Ticker | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio² | 30-Day Yield¹ | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sextant International Investor Shares | SSIFX | 17.59% | 4.21% | 7.81% | 6.90% | 1.00% | 0.43% | ||||
| Sextant International Z Shares | SIFZX | 17.81% | 4.42% | 8.04% | n/a | 0.77% | 0.66% | ||||
| MSCI EAFE | 12.09% | 3.43% | 6.97% | 4.84% | 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 29, 2024.
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 MSCI EAFE Index is an international index focused on Europe, Australasia, and the Far East. 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) |
|---|---|---|---|---|---|---|
| Z Shares (SIFZX) | ||||||
| 12/20/2023 | 12/21/2023 | $0.12000 | $0.00 | $0.00 | $0.00 | $0.12000 |
| 12/15/2021 | 12/16/2021 | $0.00 | $0.18000 | $0.00 | $1.75600 | $1.93600 |
| 12/16/2020 | 12/17/2020 | $0.00 | $0.12000 | $0.00 | $0.00 | $0.12000 |
| Investor Shares (SSIFX) | ||||||
| 12/20/2023 | 12/21/2023 | $0.07500 | $0.00 | $0.00 | $0.00 | $0.07500 |
| 12/15/2021 | 12/16/2021 | $0.00 | $0.13000 | $0.00 | $1.75600 | $1.88600 |
| 12/16/2020 | 12/17/2020 | $0.00 | $0.07500 | $0.00 | $0.00 | $0.07500 |
The Sextant International 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.
Distributions for the last five 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 | Z Shares | |
| Management Fees1 | 0.50% | 0.50% |
| Distribution (12b-1) Fees | 0.25% | None |
| Other Expenses | 0.25% | 0.27% |
| Total Annual Fund Operating Expenses | 1.00% | 0.77% |
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 basic 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, 2023 was 0.56% (annual rate).
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 for both Investor Shares and Z Shares is $1,000 (for tax-sheltered accounts, there is no minimum).
Literature
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.
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, and at times may be out of favor with investors. Smaller companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions.
Foreign investing risk: The Fund may invest in securities that are not traded in the United States when market conditions or investment opportunities arise that, in the judgment of the adviser, warrant such investment. Investments in the securities of foreign issuers may involve risks in addition to those normally associated with investments in the securities of US issuers. All foreign investments are subject to risks of: (1) foreign political and economic instability; (2) adverse movements in foreign exchange rates; (3) currency devaluation; (4) the imposition or tightening of exchange controls or other limitations on repatriation of foreign capital; (5) changes in foreign governmental attitudes towards private investment, including potential nationalization, increased taxation, or confiscation of assets; and (6) differing reporting, accounting, and auditing standards of foreign countries.
Emerging markets risk: There are heightened risks when investing in emerging markets, which are generally less liquid and more volatile than more developed securities markets. These risks include greater political or economic uncertainties; delays and disruptions in securities settlement procedures; weaker corporate governance, accounting, auditing and financial reporting standards; and less publicly available information about issuers. Emerging market countries’ governments may also be more likely to impose capital controls or nationalize an industry.
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.
Sector risk: From time to time, based on market or economic conditions, the Fund may have significant positions in one or more sectors of the market. To the extent the Fund invests more heavily in particular sectors, its performance will be especially sensitive to developments that significantly affect those sectors. Individual sectors may be more volatile, and may perform differently, than the broader market. The industries that constitute a sector may all react in the same way to economic, political or regulatory events.
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.