|Investor Shares||Z Shares|
|Sextant Growth Fund||SSGFX||SGZFX|
|Sextant International Fund||SSIFX||SIFZX|
|Minimum Initial Investment||$1,000||$1,000|
|For tax-sheltered accounts||None||None|
|Distribution (12b-1) Fee||0.25%||None|
Intended to serve individuals, institutions, and retirement plans, the Sextant Mutual Funds Z Shares are Clean Shares, as defined by the US Securities and Exchange Commission. Clean Shares are characterized by a lack of any ongoing distribution expenses and sub-transfer agency fees, and that financial intermediaries transact shares solely on an agency basis. When you purchase Clean Shares through a financial intermediary, such as a broker-dealer or financial adviser, you may be charged a transaction fee or commission to purchase the shares. Saturna Capital does not charge any transaction fees or commissions on purchases or sales of any of the Funds for which it is investment adviser.
The Z Shares are largely the same as the respective Investor shares, but do feature some noteworthy differences:
the same investment objectives
the same minimum initial investment
lower expense ratios
potentially different distributions
different NAVs and returns
different ticker symbols
Same investment objectives
The investment objectives of each Fund remain the same.
Same minimum initial investment
The minimum to invest in Z shares is $1,000 (no minimum for tax-sheltered accounts). This is a low minimum for this type of share class intended to allow nearly all of the existing shareowners to convert to the lower cost shares.
Lower expense ratios
Z shares do not charge 12b-1 distribution fees. The adviser fee structure remains the same, and other expenses are calculated for each class based on the net assets of that class, except that certain expenses may be charged only to a specific class (if that class incurred the expense, such as shareowner servicing and retirement plan custodial fees).
Income distributions will differ for each class because of the differences in expenses. Capital gains distributions, however, will be the same for all classes.
Different NAVs and returns
Because the expenses are different for each class, the NAVs and returns also vary. Lower expense ratios will translate into different performance for the Z Shares when compared to Investor Shares.
Shareowners may elect to convert Investor Shares into corresponding Z Shares of the same Fund, provided that following the conversion the shareowners meet the investment minimum. An automatic conversion is scheduled to take place on July 11, 2017. In most cases, conversions should not incur any tax penalties.
Each class of shares of a Fund represents an interest in the same portfolio of investments of that Fund and will have in all respects the same rights and obligations as each other class of the Fund.
Sextant Core, Sextant Global High Income, Sextant Bond Income, and Sextant Short-Term Bond Funds continue to have only one share class each. As of June 2, 2017, those Funds and classes have ended the 12b-1 Plan and are not subject to the 12b-1 fee. The shares of those Funds are also “clean shares”.