SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 002-96924
AMANA MUTUAL FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)
1300 N. State Street
Bellingham, Washington 98225-4730
(Address of Principal Executive Offices, including ZIP Code)
Nicholas F. Kaiser
1300 N. State Street
Bellingham, Washington 98225-4730
(Name and Address of Agent for Service)
Registrant's Telephone Number — (360) 734-9900
Date of fiscal year end: May 31, 2013
Date of reporting period: November 30, 2012
Item 1. Semi-Annual Report
Amana Mutual Funds Trust
Semi-Annual Report
November 30, 2012
Income Fund • | Growth Fund • | Developing World Fund |
AMANX | AMAGX | AMDWX |
Performance Summary (as of December 31, 2012)
Average Annual Returns (before any taxes paid by shareowners) | 10 Year | 5 Year | 3 Year | 1 Year | Expense Ratio¹ |
Amana Income Fund | 11.06% | 3.46% | 7.84% | 9.65% | 1.20% |
Amana Growth Fund | 11.70% | 3.33% | 8.16% | 11.21% | 1.13% |
Amana Developing World Fund | n/a | n/a | 1.21% | 6.69% | 1.63% |
Morningstar™ Ratings² | Overall | 10 Year | 5 Year | 3 Year | 1 Year |
Amana Income Fund — "Large Blend" category | |||||
Morningstar Rating™ | * * * * * | * * * * * | * * * * * | * * * | n/a |
% Rank in category | n/a | 1 | 6 | 71 | 93 |
Funds in category | 1,506 | 836 | 1,324 | 1,506 | 1,686 |
Amana Growth Fund — "Large Growth" category | |||||
Morningstar Rating™ | * * * * * | * * * * * | * * * * * | * * * | n/a |
% Rank in category | n/a | 2 | 13 | 70 | 89 |
Funds in category | 1,503 | 863 | 1,301 | 1,503 | 1,681 |
Amana Developing World Fund — "Diversified Emerging Markets" category | |||||
Morningstar Rating™ | * * * | n/a | n/a | * * * | n/a |
% Rank in category | n/a | n/a | n/a | 84 | 96 |
Funds in category | 358 | n/a | n/a | 358 | 552 |
Lipper Quintile Rankings³ | 10 Year | 5 Year | 3 Year | 1 Year |
Amana Income Fund — "Equity Income" category | ||||
Quintile Rank | 1st | 1st | 5th | 5th |
Absolute Rank / Funds in category | 1/111 | 32/216 | 223/247 | 254/313 |
Amana Growth Fund — "Multi-Cap Growth" category | ||||
Quintile Rank | 1st | 1st | 4th | 5th |
Absolute Rank / Funds in category | 14/255 | 75/387 | 351/466 | 436/531 |
Amana Developing World Fund — "Emerging Markets" category | ||||
Quintile Rank | n/a | n/a | 5th | 5th |
Absolute Rank / Funds in category | n/a | n/a | 278/339 | 505/523 |
Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results. Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 888/73-AMANA or visiting www.amanafunds.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The 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. The Amana Funds limit the securities they purchase to those consistent with Islamic principles, which limits opportunities and may increase risk.
Please consider an investment's objective, risks, charges and expenses carefully before investing. To obtain a free prospectus or summary prospectus which contains this and other important information on the Amana Funds, please call toll-free 888/73-AMANA or visit www.amanafunds.com. Please read the prospectus or summary prospectus carefully before investing.
¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus which is dated September 14, 2012 and incorporates results for the fiscal year ended May 31, 2012. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. Also by regulation, the performance in this table represents the most recent calendar quarter-end performance rather than performance through the Funds' most recent fiscal period.
² Source: Morningstar December 31, 2012. Morningstar, Inc. is an independent fund performance monitor. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of performance figures associated with its 3, 5, and 10 year (if applicable) Morningstar Rating metrics.
% Rank in Category: This is the fund's total return percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.
³ Source: Lipper Inc., A Thomson Reuters Company, December 31, 2012. Lipper Inc. is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Rankings are based on past performance with capital gains and dividends reinvested.
Fellow Shareowners:
Stock markets gained nicely during the six months ended November 30, 2012, as the U.S. economy continued its recovery. For this semi-annual fiscal period, Amana Income returned 7.43%, Amana Growth gained 5.02%, and Amana Developing World was up 4.55%. General market indicators similarly appreciated: the S&P 500 Index returned 9.32% while the Dow Jones Islamic Market U.S. Total Return Index returned 7.06%. Domestic U.S. markets generally outperformed international markets in the latter part of 2012, as economic indicators in Europe and Asia seesawed.
The Amana Funds employ investment screens which preclude investments in highly leveraged companies plus certain industries, such as the banking and financial sectors. We favor companies with low debt levels and strong balance sheets, which generally fare better in distressed times. With the market strengthening in 2012, we cautiously increased our holdings of many attractively priced securities. Our conservative style hurt our relative performance, as financial stocks widely outperformed in 2012.
Top Long-Term Results
Experienced investors know that gains or losses over a short interval tell an incomplete story compared to performance evaluated over a longer time span. That's why the recognition that Amana continues to receive for superlative long-term performance is so important to our shareowners.
Both Amana Income and Amana Growth Funds rank in top 2% for 10 Year Morningstar category performance |
Both Amana Income and Amana Growth outperformed the average fund in their Morningstar categories1 for seven of the last ten calendar years. Also during the last decade, both funds were twice ranked in the top 1% of all funds in their Morningstar categories. Amana Income Fund had the distinction of ranking first (#1) of 111 funds over 10 years in its Lipper "Equity Income" category.
Amana's third and newest fund, Amana Developing World, underperformed its peers, as it maintained a relatively high cash position while most of the world's emerging markets rallied. The Fund returned 6.69% for the year ended 12/31/2012, which compares to its benchmark, the MSCI Emerging Markets Index, which returned 18.47%. This result largely reversed 2011's strong outperformance, when the Fund mostly avoided 2011's broad decline in the emerging markets.
Going Forward
The U.S. economy is notably improving: employment is creeping up, construction is doing better, and the U.S. dollar is strong. Led by exports and moderate consumer spending, U.S. manufacturing is improving. Consumer confidence is rising, with auto sales driving higher and holiday shopping stronger. Federal government tax increases avoided most everybody, but spending seems impossible to control. Central banks are still pushing cash out to the markets. Corporate earnings for 2013 should be even better than 2012, but the outlook for every industry varies.
The future is always different from the past, and we vigilantly watch for significant changes in major trends. Inflation, for example, may be dead for years to come. After a fifty-year expansion built on ever-increasing credit, we now see deleveraging by governments and consumers. Real estate, for example, still has years of stagnation ahead as demand contracts and financing is restricted around the globe. Bank regulators continue to demand more capital to reduce risk, which reduces lending. Long-term interest rates, good inflation predictors, remain at multi-generational lows in many economies. More efficient, web-based organizations are deflationary, meaning the internet's main effect on business is broadly lower prices and less need for employment. Yet, regardless of the trend, Amana will consistently invest in companies with histories of solid revenues, earnings, dividends, and balance sheets.
During the fiscal year ended in May 2012, Amana's assets declined 3%. Unfortunately, in a general investor flight from equities during the last six months, assets declined 1% to $3.48 billion. The impact of asset growth on fund expense ratios is twofold. Not only do higher assets help by spreading out fixed expenses, but a fund's advisory fees may also be lowered (for example, to just 0.65% of individual fund assets over $1.5 billion). We watch expenses carefully and are pleased to report declines in the annualized expense ratios of two funds, despite a slight decline in assets. Amana Income remains at 1.20%, while Amana Growth is now 1.12% and Amana Developing World is now 1.56% for the first half of the current fiscal year.
Amana Mutual Funds embody basic principles of sound finance: good governance, transparency, fairness, and risk sharing. Saturna Capital staff work from offices in Bellingham, Chicago, Reno, and Kuala Lumpur (Malaysia) to better serve you. For more information, please visit www.amanafunds.com or call 1-888/73-AMANA.
Respectfully,
Nicholas Kaiser,
President & Portfolio Manager
Talat Othman,
Independent Board Chairman
¹ Amana Income's Morningstar category from 2002 through 2010 was Large Value. It changed categories to Large Blend in May of 2011. Amana Growth's Morningstar category from 2002 through 2012 was Large Growth.
Semi-Annual Report | November 30, 2012 | 3 |
Performance Summary (as of November 30, 2012)
As of November 30, 2012, the U.S. mutual fund rating service, Morningstar™, honored Amana by awarding both the Income and Growth Funds their highest rating: * * * * * Overall. The strong performance history of both Funds is also illustrated in their "% Rank in category" standings. Here are the details¹:
Morningstar™ Ratings¹ | Overall | 10 Year | 5 Year | 3 Year | 1 Year |
Amana Income Fund — "Large Blend" category | |||||
Morningstar Rating™ | * * * * * | * * * * * | * * * * * | * * * | n/a |
% Rank in category | n/a | 1 | 6 | 72 | 91 |
Funds in category | 1,524 | 838 | 1,327 | 1,524 | 1,702 |
Amana Growth Fund — "Large Growth" category | |||||
Morningstar Rating™ | * * * * * | * * * * * | * * * * * | * * * | n/a |
% Rank in category | n/a | 1 | 16 | 73 | 86 |
Funds in category | 1,470 | 847 | 1,274 | 1,470 | 1,635 |
Amana Developing World Fund — "Diversified Emerging Markets" category | |||||
Morningstar Rating™ | * * * | n/a | n/a | * * * | n/a |
% Rank in category | n/a | n/a | n/a | 85 | 92 |
Funds in category | 355 | n/a | n/a | 355 | 552 |
Amana also garnered high marks with Lipper Inc. (A Thomson Reuters Company)²:
Lipper Quintile Rankings² | 10 Year | 5 Year | 3 Year | 1 Year |
Amana Income Fund — "Equity Income" category | ||||
Quintile Rank | 1st | 1st | 5th | 5th |
Absolute Rank / Funds in category | 2/110 | 35/213 | 225/248 | 283/311 |
Amana Growth Fund — "Multi-Cap Growth" category | ||||
Quintile Rank | 1st | 2nd | 4th | 4th |
Absolute Rank / Funds in category | 10/258 | 89/390 | 363/464 | 409/525 |
Amana Developing World Fund — "Emerging Markets" category | ||||
Quintile Rank | n/a | n/a | 5th | 5th |
Absolute Rank / Funds in category | n/a | n/a | 281/337 | 470/521 |
Performance data quoted above represents past performance and is no guarantee of future results. Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 888/73-AMANA or visiting www.amanafunds.com.
¹ Source: Morningstar November 30, 2012. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return™ measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% in each category receive 5 stars, the next 22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a fund is derived from a weighted average of performance figures associated with its 3, 5, and 10 year (if applicable) Morningstar Rating™ metrics.
% Rank in Category: This is the fund's total return percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.
² Source: Lipper Inc., A Thomson Reuters Company, November 30, 2012. Lipper Inc. is a nationally recognized organization that ranks performance of mutual funds within a universe of funds that have similar investment objectives. Quintile Rankings are based on past performance with capital gains and dividends reinvested.
4 | Semi-Annual Report | November 30, 2012 |
Amana Income Fund: Performance Summary
Average Annual Returns (as of November 30, 2012)
10 Year | 5 Years | 1 Year | Expense Ratio¹ | |
Amana Income Fund | 10.81% | 3.14% | 9.39% | 1.20% |
S&P 500 Index | 6.35% | 1.34% | 16.13% | N/A |
Growth of $10,000
Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged, and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 29, 2002, to an identical amount invested in the S&P 500 Index, a broad-based stock market index. The graph shows that an investment in the Fund would have risen to $27,922 versus $18,523 in the Index. | |
Past performance does not guarantee future results. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus which is dated September 14, 2012, and incorporates results for the fiscal year ended May 31, 2012. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. |
Fund Objective
The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective.
Top Ten Holdings | Portfolio Diversification | ||
% of Fund Assets | Industry weightings are shown as a percentage of total net assets. | ||
Eli Lilly | 2.6% | ||
Colgate-Palmolive | 2.5% | ||
Canadian National Railway | 2.4% | ||
Exxon Mobil | 2.4% | ||
Illinois Tool Works | 2.4% | ||
Kellogg | 2.4% | ||
Nike | 2.3% | ||
Pfizer | 2.3% | ||
W.W. Grainger | 2.3% | ||
PepsiCo | 2.2% | ||
Semi-Annual Report | November 30, 2012 | 5 |
Amana Income Fund: Schedule of Investments
Common Stocks — 95.6 % | Number of Shares | Cost | Market Value | Percentage of Assets |
Communications | ||||
Local Media | ||||
Pearson ADS | 300,000 | $4,106,896 | $5,712,000 | 0.4% |
Telecom Carriers | ||||
Chunghwa Telecom ADS | 555,154 | 12,749,782 | 17,848,201 | 1.4% |
Telstra ADR | 150,000 | 2,505,532 | 3,376,500 | 0.3% |
Telus | 100,000 | 4,478,065 | 6,483,000 | 0.5% |
Vodafone Group ADS | 250,000 | 6,685,242 | 6,448,750 | 0.5% |
26,418,621 | 34,156,451 | 2.7% | ||
30,525,517 | 39,868,451 | 3.1% | ||
Consumer Discretionary | ||||
Apparel, Footwear, Accessory Design | ||||
Nike | 310,000 | 18,670,512 | 30,218,800 | 2.3% |
Auto Parts | ||||
Johnson Controls | 600,000 | 17,273,567 | 16,524,000 | 1.3% |
Automotive Wholesale | ||||
Genuine Parts | 400,000 | 15,835,680 | 26,036,000 | 2.0% |
Home Improvement | ||||
Stanley Black & Decker | 100,000 | 6,793,209 | 7,191,000 | 0.6% |
58,572,968 | 79,969,800 | 6.2% | ||
Consumer Staples | ||||
Beverages | ||||
PepsiCo | 400,000 | 25,131,621 | 28,084,000 | 2.2% |
Food Manufacturing | ||||
General Mills | 600,000 | 19,156,589 | 24,594,000 | 1.9% |
Kellogg | 550,000 | 27,488,698 | 30,503,000 | 2.4% |
McCormick & Co | 300,000 | 14,110,805 | 19,368,000 | 1.5% |
JM Smucker | 250,000 | 13,340,013 | 22,115,000 | 1.7% |
74,096,105 | 96,580,000 | 7.5% | ||
Household Products Manufacturing | ||||
Colgate-Palmolive | 300,000 | 21,167,901 | 32,550,000 | 2.5% |
Kimberly-Clark | 300,000 | 19,381,392 | 25,716,000 | 2.0% |
Procter & Gamble | 400,000 | 23,489,880 | 27,932,000 | 2.1% |
Unilever ADS | 325,000 | 8,850,327 | 12,463,750 | 1.0% |
72,889,500 | 98,661,750 | 7.6% | ||
172,117,226 | 223,325,750 | 17.3% | ||
Energy | ||||
Exploration & Production | ||||
EnCana | 500,000 | 14,406,364 | 10,895,000 | 0.8% |
Continued on next page. |
6 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Income Fund: Schedule of Investments
Common Stocks — 95.6 % | Number of Shares | Cost | Market Value | Percentage of Assets |
Energy (continued) | ||||
Integrated Oils | ||||
Cenovus | 400,000 | $10,078,223 | $13,340,000 | 1.0% |
ConocoPhillips | 330,000 | 13,482,952 | 18,790,200 | 1.5% |
Exxon Mobil | 350,000 | 23,656,109 | 30,849,000 | 2.4% |
Total ADS | 375,000 | 20,975,783 | 18,810,000 | 1.5% |
68,193,067 | 81,789,200 | 6.4% | ||
Refining & Marketing | ||||
Phillips 66 | 165,000 | 4,203,783 | 8,641,050 | 0.7% |
86,803,214 | 101,325,250 | 7.9% | ||
Health Care | ||||
Health Care Supplies | ||||
Becton, Dickinson & Co. | 210,000 | 15,293,814 | 16,100,700 | 1.2% |
Large Pharmaceuticals | ||||
Abbott Laboratories | 350,000 | 17,540,980 | 22,750,000 | 1.8% |
AstraZeneca ADS | 320,000 | 13,975,286 | 15,212,800 | 1.2% |
Bristol-Myers Squibb | 800,000 | 19,124,096 | 26,104,000 | 2.0% |
Eli Lilly | 700,000 | 26,962,537 | 34,328,000 | 2.6% |
GlaxoSmithKline ADS | 600,000 | 23,543,156 | 25,806,000 | 2.0% |
Johnson & Johnson | 310,000 | 19,094,962 | 21,616,300 | 1.7% |
Novartis ADS | 450,000 | 22,518,080 | 27,922,500 | 2.2% |
Pfizer | 1,200,000 | 22,076,629 | 30,024,000 | 2.3% |
164,835,726 | 203,763,600 | 15.8% | ||
180,129,540 | 219,864,300 | 17.0% | ||
Industrials | ||||
Aerospace & Defense Parts | ||||
United Technologies | 250,000 | 14,326,611 | 20,027,500 | 1.6% |
Flow Control Equipment | ||||
Parker Hannifin | 275,000 | 12,527,667 | 22,591,250 | 1.8% |
Industrial Automation Controls | ||||
Emerson Electric | 450,000 | 20,934,219 | 22,603,500 | 1.8% |
Honeywell International | 450,000 | 20,022,265 | 27,598,500 | 2.1% |
40,956,484 | 50,202,000 | 3.9% | ||
Industrial Machinery Manufacturing | ||||
Regal-Beloit | 100,000 | 4,068,804 | 6,975,000 | 0.5% |
Industrial Supply Distribution | ||||
W.W. Grainger | 150,000 | 14,706,937 | 29,103,000 | 2.3% |
Measurement Instruments | ||||
Rockwell Automation | 325,000 | 15,208,967 | 25,753,000 | 2.0% |
Post & Courier Services | ||||
United Parcel Service | 300,000 | 19,152,084 | 21,933,000 | 1.7% |
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 7 |
Amana Income Fund: Schedule of Investments
Common Stocks — 95.6 % | Number of Shares | Cost | Market Value | Percentage of Assets |
Industrials (continued) | ||||
Rail Freight Transportation | ||||
Canadian National Railway | 350,000 | $16,700,299 | $31,440,500 | 2.4% |
Rubber & Plastic Manufacturing | ||||
Carlisle | 490,000 | 15,157,306 | 27,768,300 | 2.1% |
152,805,159 | 235,793,550 | 18.3% | ||
Materials | ||||
Base Metals | ||||
Freeport-McMoRan Copper & Gold | 550,000 | 19,275,646 | 21,455,500 | 1.7% |
Basic & Diversified Chemicals | ||||
Air Products & Chemicals | 250,000 | 16,422,819 | 20,735,000 | 1.6% |
Methanex | 300,000 | 5,849,587 | 9,072,000 | 0.7% |
PPG Industries | 200,000 | 13,211,577 | 24,854,000 | 1.9% |
Praxair | 220,000 | 16,103,769 | 23,586,200 | 1.9% |
51,587,752 | 78,247,200 | 6.1% | ||
Containers & Packaging Manufacturing | ||||
3M | 260,000 | 19,087,244 | 23,647,000 | 1.8% |
Illinois Tool Works | 500,000 | 23,226,178 | 30,785,000 | 2.4% |
42,313,422 | 54,432,000 | 4.2% | ||
Specialty Chemicals | ||||
BASF ADR | 140,000 | 5,118,606 | 12,584,600 | 1.0% |
E.I. du Pont de Nemours | 400,000 | 17,038,300 | 17,256,000 | 1.3% |
RPM International | 180,000 | 3,642,493 | 5,221,800 | 0.4% |
25,799,399 | 35,062,400 | 2.7% | ||
Steel Producers | ||||
Nucor | 200,000 | 9,270,293 | 8,236,000 | 0.7% |
Tenaris ADS | 110,000 | 3,439,736 | 4,393,400 | 0.3% |
United States Steel | 250,000 | 9,928,676 | 5,390,000 | 0.4% |
22,638,705 | 18,019,400 | 1.4% | ||
161,614,924 | 207,216,500 | 16.1% | ||
Technology | ||||
Information Services | ||||
Dun & Bradstreet | 200,000 | 15,599,260 | 15,836,000 | 1.2% |
Infrastructure Software | ||||
Microsoft | 1,000,000 | 24,161,315 | 26,615,000 | 2.1% |
Semiconductor Devices | ||||
Intel | 1,200,000 | 21,854,225 | 23,478,000 | 1.8% |
Microchip Technology | 600,000 | 17,526,721 | 18,252,000 | 1.4% |
39,380,946 | 41,730,000 | 3.2% | ||
Semiconductor Manufacturing Services | ||||
Taiwan Semiconductor ADS | 1,500,000 | 16,043,323 | 25,905,000 | 2.0% |
95,184,844 | 110,086,000 | 8.5% | ||
Continued on next page. |
8 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Income Fund: Schedule of Investments
Common Stocks — 95.6 % | Number of Shares | Cost | Market Value | Percentage of Assets |
Utilities | ||||
Electric & Gas Marketing & Trading | ||||
E.ON ADR | 206,139 | $7,552,389 | $3,719,263 | 0.3% |
Utility Networks | ||||
Enersis ADS | 200,000 | 4,040,000 | 3,390,000 | 0.2% |
National Fuel Gas | 170,000 | 7,593,521 | 8,853,600 | 0.7% |
11,633,521 | 12,243,600 | 0.9% | ||
19,185,910 | 15,962,863 | 1.2% | ||
Total Common Stocks | $956,939,302 | $1,233,412,464 | 95.6% | |
Halal Income — 0.4% | Coupon/Maturity | Face Amount | Market Value | Percentage of Assets |
Sukuk | ||||
Malaysian Government | ||||
1Malaysia Sukuk | 3.928% due 06/04/2015 | $5,000,000 | $5,333,305 | 0.4% |
$5,000,000 | 5,333,305 | 0.4% | ||
Total investments | (Cost = $962,150,407) | 1,238,745,769 | 96.0% | |
Other assets (net of liabilities) | 51,107,583 | 4.0% | ||
Total net assets | $1,289,853,352 | 100.0% | ||
ADS: American Depositary Share ADR: American Depositary Receipt |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 9 |
Amana Income Fund
Statement of Assets and Liabilities | ||
As of November 30, 2012 | ||
Assets | ||
Investments in securities, at value (Cost $962,150,407) | $1,238,745,769 | |
Cash | 48,374,041 | |
Dividends and Income | 4,851,166 | |
Receivable for Fund shares sold | 438,899 | |
Insurance reserve premium | 2,528 | |
Total assets | 1,292,412,403 | |
Liabilities | ||
Payable for Fund shares redeemed | 1,347,596 | |
Payable to affiliates | 1,026,895 | |
Accrued expenses | 96,754 | |
Accrued distribution fee | 87,806 | |
Total liabilities | 2,559,051 | |
Net Assets | $1,289,853,352 | |
Analysis of Net Assets | ||
Paid-in capital (unlimited shares authorized, without par value) | $1,002,347,486 | |
Undistributed net investment income | 10,650,711 | |
Undistributed net realized gain | 259,793 | |
Unrealized net appreciation on investments | 276,595,362 | |
Net assets applicable to Fund shares outstanding | $1,289,853,352 | |
Fund shares outstanding | 37,797,110 | |
Net asset value, offering and redemption price per share | $34.13 |
Statement of Operations | ||
Period ended November 30, 2012 | ||
Investment income | ||
Dividends (net of foreign taxes of $612,048) | $17,935,892 | |
Halal income | 57,201 | |
Miscellaneous income | 363 | |
Gross investment income | 17,993,456 | |
Expenses | ||
Investment adviser fees | 5,685,786 | |
Distribution fees | 1,644,577 | |
Shareowner servicing fees | 304,501 | |
Printing and postage | 85,406 | |
Trustee fees | 32,191 | |
Custodian fees | 30,523 | |
Professional fees | 30,116 | |
Retirement plan custodial fees | 28,036 | |
Other expenses | 23,584 | |
Filing and registration fees | 18,064 | |
Chief Compliance Officer expenses | 4,465 | |
Total gross expenses | 7,887,249 | |
Less custodian fee credits | (30,523) | |
Net expenses | 7,856,726 | |
Net investment income | $10,136,730 | |
Net realized gain from investments and foreign currency | $3,085 | |
Net increase in unrealized appreciation on investments and foreign currency | 83,498,769 | |
Net gain on investments | $83,501,854 | |
Net increase in net assets resulting from operations | $93,638,584 |
10 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Income Fund
Statements of Changes in Net Assets | Period ended November 30, 2012 | Year ended May 31, 2012 |
Increase (decrease) in net assets from operations: | ||
From operations | ||
Net investment income | $10,136,730 | $20,134,607 |
Net realized gain on investments | 3,085 | 20,114,750 |
Net increase (decrease) in unrealized appreciation | 83,498,769 | (102,621,387) |
Net increase (decrease) in net assets | 93,638,584 | (62,372,030) |
Distributions to shareholders from | ||
Net investment income | - | (20,092,368) |
Capital gains distribution | - | (6,754,395) |
Total distributions | - | (26,846,763) |
Capital share transactions | ||
Proceeds from sales of shares | 87,938,682 | 330,549,840 |
Value of shares issued in reinvestment of dividends | - | 24,871,290 |
Early redemption fees retained | 23,584 | 282,713 |
Cost of shares redeemed | (188,745,580) | (369,483,490) |
Net decrease in net assets | (100,783,314) | (13,779,647) |
Total decrease in net assets | (7,144,730) | (102,998,440) |
Net assets | ||
Beginning of period | 1,296,998,082 | 1,399,996,522 |
End of period | 1,289,853,352 | 1,296,998,082 |
Undistributed net investment income | $10,650,711 | $513,981 |
Shares of the Fund sold and redeemed | ||
Number of shares sold | 2,655,804 | 10,349,669 |
Number of shares issued in reinvestment of dividends | - | 783,176 |
Number of shares redeemed | (5,681,875) | (11,597,833) |
Net decrease in number of shares outstanding | (3,026,071) | (464,988) |
Financial Highlights | Period ended | For year ended May 31, | ||||
Selected data per share of outstanding capital stock throughout each period: | Nov. 30, 2012 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net asset value at beginning of period | 31.77 | $33.91 | $27.28 | $24.27 | $31.49 | $30.99 |
Income from investment operations | ||||||
Net investment income | 0.27 | 0.49 | 0.44 | 0.35 | 0.34¹ | 0.22¹ |
Net gains (losses) on securities (both realized and unrealized) | 2.09 | (1.98) | 6.63 | 3.01 | (7.28) | 0.89 |
Total from investment operations | 2.36 | (1.49) | 7.07 | 3.36 | (6.94) | 1.11 |
Less distributions | ||||||
Dividends (from net investment income) | - | (0.49) | (0.44) | (0.35) | (0.28) | (0.18) |
Distributions (from capital gains) | - | (0.17) | - | - | (0.01) | (0.43) |
Total distributions | - | (0.66) | (0.44) | (0.35) | (0.29) | (0.61) |
Paid-in capital from early redemption fees | 0.00² | 0.01 | 0.00² | 0.00² | 0.01 | 0.00² |
Net asset value at end of period | $34.13 | $31.77 | $33.91 | $27.28 | $24.27 | $31.49 |
Total Return | 7.43% | (4.36)% | 25.97% | 13.80% | (22.01)% | 3.61% |
Ratios / supplemental data | ||||||
Net assets ($000), end of period | $1,289,853 | $1,296,998 | $1,399,997 | $1,067,854 | $691,412 | $493,916 |
Ratio of expenses to average net assets | ||||||
Before custodian fee credits | 0.60% | 1.20% | 1.21% | 1.26% | 1.33% | 1.33% |
After custodian fee credits | 0.60% | 1.20% | 1.20% | 1.25% | 1.32% | 1.32% |
Ratio of net investment income after custodian fee credits to average net assets | 0.77% | 1.52% | 1.47% | 1.33% | 1.39% | 0.71% |
Portfolio turnover rate | 0% | 3% | 3% | 5% | 6% | 2% |
¹ Calculated using average shares outstanding | ² Amount is less than $0.01 |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 11 |
Amana Growth Fund: Performance Summary
Average Annual Returns (as of November 30, 2012)
10 Years | 5 Years | 1 Year | Expense Ratio¹ | |
Amana Growth Fund | 11.02% | 2.83% | 9.33% | 1.13% |
S&P 500 Index | 6.35% | 1.34% | 16.13% | N/A |
Growth of $10,000
Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged, and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 29, 2002, to an identical amount invested in the S&P 500 Index, a broad-based stock market index. The graph shows that an investment in the Fund would have risen to $28,440 versus $18,523 in the Index. | |
Past performance does not guarantee future results. The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus which is dated September 14, 2012, and incorporates results for the fiscal year ended May 31, 2012. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. |
Fund Objective
The primary objective of the Growth Fund is long-term capital growth, consistent with Islamic principles.
Top Ten Holdings | Portfolio Diversification | ||
% of Fund Assets | Industry weightings are shown as a percentage of total net assets. | ||
Apple | 5.4% | ||
2.7% | |||
Amgen | 2.6% | ||
Intuit | 2.5% | ||
Qualcomm | 2.3% | ||
PetSmart | 2.3% | ||
Oracle | 2.2% | ||
International Business Machines | 2.2% | ||
Trimble Navigation | 2.2% | ||
SAP ADS | 2.1% | ||
12 | Semi-Annual Report | November 30, 2012 |
Amana Growth Fund: Schedule of Investments
Common Stocks — 92.8% | Number of Shares | Cost | Market Value | Percentage of Assets |
Communications | ||||
Internet Media | ||||
Google¹ | 85,000 | $38,721,712 | $59,361,450 | 2.7% |
Local Media | ||||
John Wiley & Sons | 100,000 | 3,474,490 | 4,270,000 | 0.2% |
Telecom Carriers | ||||
Akamai Technologies¹ | 1,000,000 | 21,444,890 | 36,620,000 | 1.7% |
America Movil ADS | 1,100,000 | 22,050,820 | 25,949,000 | 1.2% |
Rogers Communications | 40,000 | 1,161,216 | 1,766,800 | 0.1% |
44,656,926 | 64,335,800 | 3.0% | ||
86,853,128 | 127,967,250 | 5.9% | ||
Consumer Discretionary | ||||
Auto Parts | ||||
Gentex | 700,000 | 14,110,974 | 12,425,000 | 0.6% |
Automotive Wholesale | ||||
Genuine Parts | 125,000 | 5,729,519 | 8,136,250 | 0.4% |
Consumer Electronics & Appliance Stores | ||||
Best Buy | 600,000 | 26,509,117 | 7,866,000 | 0.4% |
General Merchant Wholesalers | ||||
Fastenal | 800,000 | 20,471,439 | 33,448,000 | 1.5% |
Home Product Stores | ||||
Lowe's | 900,000 | 21,982,605 | 32,481,000 | 1.5% |
Other Specialty Retail — Discretionary | ||||
PetSmart | 700,000 | 19,711,334 | 49,462,000 | 2.3% |
Staples | 400,000 | 7,977,170 | 4,680,000 | 0.2% |
27,688,504 | 54,142,000 | 2.5% | ||
Passenger Transportation | ||||
LATAM Airlines ADS | 689,762 | 10,527,808 | 15,278,228 | 0.7% |
Specialty Apparel Stores | ||||
TJX Companies | 900,000 | 18,957,770 | 39,906,000 | 1.8% |
Urban Outfitters¹ | 500,000 | 18,775,643 | 18,850,000 | 0.9% |
37,733,413 | 58,756,000 | 2.7% | ||
Toys & Games | ||||
JAKKS Pacific | 161,200 | 2,057,130 | 2,011,776 | 0.1% |
Mattel | 200,000 | 5,478,474 | 7,502,000 | 0.3% |
7,535,604 | 9,513,776 | 0.4% | ||
172,288,983 | 232,046,254 | 10.7% | ||
Consumer Staples | ||||
Beverages | ||||
Monster Beverage¹ | 850,000 | 14,373,051 | 44,242,500 | 2.0% |
PepsiCo | 600,000 | 36,524,583 | 42,126,000 | 2.0% |
50,897,634 | 86,368,500 | 4.0% | ||
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 13 |
Amana Growth Fund: Schedule of Investments
Common Stocks — 92.8% | Number of Shares | Cost | Market Value | Percentage of Assets |
Consumer Staples (continued) | ||||
Food Manufacturing | ||||
Danone ADR | 410,674 | $6,533,458 | $5,248,414 | 0.2% |
Household Products Manufacturing | ||||
Church & Dwight | 800,000 | 31,059,800 | 43,320,000 | 2.0% |
Clorox | 475,000 | 28,611,552 | 36,266,250 | 1.7% |
Estee Lauder | 640,000 | 26,422,282 | 37,280,000 | 1.7% |
86,093,634 | 116,866,250 | 5.4% | ||
143,524,726 | 208,483,164 | 9.6% | ||
Energy | ||||
Exploration & Production | ||||
EnCana | 400,000 | 9,640,384 | 8,716,000 | 0.4% |
Integrated Oils | ||||
Cenovus | 600,000 | 15,281,153 | 20,010,000 | 0.9% |
Suncor Energy | 700,000 | 25,488,281 | 22,827,000 | 1.1% |
40,769,434 | 42,837,000 | 2.0% | ||
50,409,818 | 51,553,000 | 2.4% | ||
Health Care | ||||
Biotech | ||||
Amgen | 650,000 | 37,029,165 | 57,720,000 | 2.6% |
Celgene¹ | 100,000 | 7,547,036 | 7,859,000 | 0.4% |
44,576,201 | 65,579,000 | 3.0% | ||
Health Care Facilities | ||||
VCA Antech¹ | 700,000 | 20,080,202 | 14,546,000 | 0.7% |
Health Care Supply Chain | ||||
Express Scripts¹ | 650,000 | 22,597,762 | 35,002,500 | 1.6% |
Large Pharmaceuticals | ||||
Eli Lilly | 650,000 | 23,224,550 | 31,876,000 | 1.5% |
Johnson & Johnson | 600,000 | 36,611,701 | 41,838,000 | 1.9% |
Novartis ADS | 650,000 | 30,201,783 | 40,332,500 | 1.9% |
Novo Nordisk ADS | 220,000 | 10,428,308 | 34,907,400 | 1.6% |
100,466,342 | 148,953,900 | 6.9% | ||
Managed Care | ||||
Humana | 650,000 | 24,303,411 | 42,516,500 | 2.0% |
Medical Equipment | ||||
Dentsply International | 700,000 | 22,388,875 | 27,790,000 | 1.3% |
Orthopedic Devices | ||||
Stryker | 300,000 | 15,657,168 | 16,248,000 | 0.7% |
Zimmer | 225,000 | 14,203,045 | 14,843,250 | 0.7% |
29,860,213 | 31,091,250 | 1.4% | ||
264,273,006 | 365,479,150 | 16.9% | ||
Continued on next page. |
14 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund: Schedule of Investments
Common Stocks — 92.8% | Number of Shares | Cost | Market Value | Percentage of Assets |
Industrials | ||||
Building Sub-Contractors | ||||
EMCOR | 700,000 | $14,885,660 | $22,995,000 | 1.1% |
Flow Control Equipment | ||||
Crane | 300,000 | 10,212,899 | 12,732,000 | 0.6% |
Industrial Machinery Manufacturing | ||||
Regal-Beloit | 300,000 | 17,345,995 | 20,925,000 | 1.0% |
Measurement Instruments | ||||
Agilent Technologies | 900,000 | 22,797,417 | 34,461,000 | 1.6% |
Trimble Navigation¹ | 850,000 | 20,463,059 | 47,294,000 | 2.2% |
43,260,476 | 81,755,000 | 3.8% | ||
Metalworking Machinery Manufacturing | ||||
Lincoln Electric | 500,000 | 13,126,984 | 23,755,000 | 1.1% |
Post & Courier Services | ||||
United Parcel Service | 500,000 | 33,511,923 | 36,555,000 | 1.6% |
Rail Freight Transportation | ||||
Norfolk Southern | 500,000 | 26,797,903 | 30,190,000 | 1.4% |
Union Pacific | 276,327 | 30,102,566 | 33,927,429 | 1.5% |
56,900,469 | 64,117,429 | 2.9% | ||
189,244,406 | 262,834,429 | 12.1% | ||
Materials | ||||
Agricultural Chemicals | ||||
Potash Corp of Saskatchewan | 900,000 | 20,854,762 | 34,668,000 | 1.6% |
Base Metals | ||||
Anglo American ADR | 1,400,000 | 19,999,821 | 19,418,000 | 0.9% |
Precious Metal Mining | ||||
Barrick Gold | 400,000 | 19,597,495 | 13,812,000 | 0.6% |
60,452,078 | 67,898,000 | 3.1% | ||
Technology | ||||
Application Software | ||||
Adobe Systems¹ | 1,300,000 | 40,019,763 | 44,993,000 | 2.1% |
Intuit | 900,000 | 27,960,568 | 53,919,000 | 2.5% |
SAP ADS | 600,000 | 34,841,094 | 46,794,000 | 2.1% |
102,821,425 | 145,706,000 | 6.7% | ||
Communications Equipment | ||||
Apple | 200,000 | 12,024,718 | 117,056,000 | 5.4% |
Cisco Systems | 2,000,000 | 39,273,610 | 37,820,000 | 1.8% |
F5 Networks¹ | 50,000 | 6,757,725 | 4,684,000 | 0.2% |
Harris | 700,000 | 25,887,434 | 32,991,000 | 1.5% |
83,943,487 | 192,551,000 | 8.9% | ||
Computer Hardware | ||||
Hewlett-Packard | 1,000,000 | 38,127,843 | 12,990,000 | 0.6% |
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 15 |
Amana Growth Fund: Schedule of Investments
Common Stocks — 92.8% | Number of Shares | Cost | Market Value | Percentage of Assets |
Technology (continued) | ||||
Information Services | ||||
Gartner¹ | 300,000 | $8,580,119 | $14,364,000 | 0.6% |
Infrastructure Software | ||||
Oracle | 1,500,000 | 33,704,630 | 48,262,500 | 2.2% |
IT Services | ||||
Convergys | 730,000 | 11,075,321 | 11,395,300 | 0.5% |
Infosys ADS | 750,000 | 36,523,550 | 33,337,500 | 1.6% |
International Business Machines | 250,000 | 26,711,857 | 47,517,500 | 2.2% |
74,310,728 | 92,250,300 | 4.3% | ||
Printing & Imaging | ||||
Canon ADS | 600,000 | 25,251,687 | 21,108,000 | 1.0% |
Semiconductor Capital Equipment | ||||
ASML | 462,000 | 17,639,136 | 28,907,340 | 1.3% |
Semiconductor Devices | ||||
Intel | 1,700,000 | 33,143,860 | 33,260,500 | 1.5% |
Qualcomm | 800,000 | 30,482,851 | 50,896,000 | 2.3% |
SanDisk¹ | 370,000 | 15,992,445 | 14,467,000 | 0.7% |
Xilinx | 600,000 | 14,947,540 | 20,790,000 | 1.0% |
94,566,696 | 119,413,500 | 5.5% | ||
Semiconductor Manufacturing Services | ||||
Taiwan Semiconductor ADS | 1,243,297 | 12,977,323 | 21,471,739 | 1.0% |
491,923,074 | 697,024,379 | 32.1% | ||
Total investments | $1,458,969,219 | 2,013,285,626 | 92.8% | |
Other assets (net of liabilities) | 155,371,170 | 7.2% | ||
Total net assets | $2,168,656,796 | 100.0% | ||
¹ Non-income producing security ADS: American Depositary Share ADR: American Depositary Receipt |
16 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Growth Fund
Statement of Assets and Liabilities | ||
As of November 30, 2012 | ||
Assets | ||
Investments in securities, at value (Cost $1,458,969,219) | $2,013,285,626 | |
Cash | 147,363,527 | |
Dividends | 10,840,058 | |
Receivable for Fund shares sold | 1,134,395 | |
Total assets | 2,172,623,606 | |
Liabilities | ||
Payable for Fund shares redeemed | 2,141,798 | |
Payable to affiliates | 1,565,928 | |
Accrued distribution fee | 146,885 | |
Accrued expenses | 112,199 | |
Total liabilities | 3,966,810 | |
Net assets | $2,168,656,796 | |
Analysis of Net Assets | ||
Paid-in capital (unlimited shares authorized, without par value) | $1,576,758,666 | |
Undistributed net investment income | 7,202,222 | |
Accumulated net realized loss | 30,379,626 | |
Unrealized net appreciation on investments and foreign currency | 554,316,282 | |
Net assets applicable to Fund shares outstanding | $2,168,656,796 | |
Fund shares outstanding | 81,570,310 | |
Net asset value, offering and redemption price per share | $26.59 |
Statement of Operations | ||
Period ended November 30, 2012 | ||
Investment income | ||
Dividends (net of foreign taxes of $346,200) | $15,624,562 | |
Miscellaneous income | 545 | |
Gross investment income | 15,625,107 | |
Expenses | ||
Investment adviser fees | 8,767,246 | |
Distribution fees | 2,793,514 | |
Shareowner servicing fees | 496,893 | |
Printing and postage | 123,393 | |
Custodian fees | 51,841 | |
Professional fees | 47,996 | |
Trustee fees | 47,549 | |
Retirement plan custodial fees | 38,048 | |
Filing and registration fees | 28,576 | |
Other expenses | 27,972 | |
Chief Compliance Officer expenses | 7,344 | |
Total gross expenses | 12,430,372 | |
Less custodian fee credits | (51,841) | |
Net expenses | 12,378,531 | |
Net investment income | $3,246,576 | |
Net realized gain from investments and foreign currency | $36,854,495 | |
Net increase in unrealized appreciation on investments and foreign currency | 68,843,778 | |
Net gain on investments | $105,698,273 | |
Net increase in net assets resulting from operations | $108,944,849 |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 17 |
Amana Growth Fund
Statements of Changes in Net Assets | Period ended Nov. 30, 2012 | Year ended May 31, 2012 |
Increase (decrease) in net assets from operations: | ||
From operations | ||
Net investment income | $3,246,576 | $4,805,385 |
Net realized gain on investments | 36,854,495 | 11,441,005 |
Net increase (decrease) in unrealized appreciation | 68,843,778 | (80,462,682) |
Net increase (decrease) in net assets | 108,944,849 | (64,216,292) |
Distributions to shareholders from | ||
Net investment income | - | (863,127) |
Total distributions | - | (863,127) |
Capital share transactions | ||
Proceeds from sales of shares | 165,441,055 | 739,420,771 |
Value of shares issued in reinvestment of dividends | - | 825,728 |
Early redemption fees retained | 29,008 | 345,468 |
Cost of shares redeemed | (300,982,957) | (690,556,071) |
Net increase (decrease) in net assets | (135,512,894) | 50,035,896 |
Total decrease in net assets | (26,568,045) | (15,043,523) |
Net assets | ||
Beginning of period | 2,195,224,841 | 2,210,268,364 |
End of period | 2,168,656,796 | 2,195,224,841 |
Undistributed net investment income | $7,202,222 | $3,955,646 |
Shares of the Fund sold and redeemed | ||
Number of shares sold | 6,299,452 | 29,911,567 |
Number of shares issued in reinvestment of dividends | - | 34,065 |
Number of shares redeemed | (11,438,799) | (28,027,658) |
Net increase (decrease) in number of shares outstanding | (5,139,347) | 1,917,974 |
Financial Highlights | Period ended | For year ended May 31, | ||||
Selected data per share of outstanding capital stock throughout each period: | Nov. 30, 2012 | 2012 | 2011 | 2010 | 2009 | 2008 |
Net asset value at beginning of period | $25.32 | $26.07 | $21.19 | $17.69 | $23.26 | $22.80 |
Income from investment operations | ||||||
Net investment income (loss) | 0.04 | 0.06 | 0.02 | (0.01) | (0.02) | (0.09) |
Net gains (losses) on securities (both realized and unrealized) | 1.23 | (0.80) | 4.88 | 3.51 | (5.48) | 0.75 |
Total from investment operations | 1.27 | (0.74) | 4.90 | 3.50 | (5.50) | 0.66 |
Less distributions | ||||||
Dividends (from net investment income) | - | (0.01) | (0.02) | - | - | - |
Distributions (from capital gains) | - | - | - | - | (0.07) | (0.20) |
Total distributions | - | (0.01) | (0.02) | - | (0.07) | (0.20) |
Paid-in capital from early redemption fees | 0.00¹ | 0.00¹ | 0.00¹ | 0.00¹ | 0.00¹ | 0.00¹ |
Net asset value at end of period | $26.59 | $25.32 | $26.07 | $21.19 | $17.69 | $23.26 |
Total return | 5.02% | (2.84)% | 23.10% | 19.79% | (23.63)% | 2.91% |
Ratios / supplemental data | ||||||
Net assets ($000), end of period | $2,168,657 | $2,195,225 | $2,210,268 | $1,596,487 | $1,046,881 | $758,498 |
Ratio of expenses to average net assets | ||||||
Before custodian fee credits | 0.56% | 1.13% | 1.14% | 1.21% | 1.31% | 1.31% |
After custodian fee credits | 0.56% | 1.13% | 1.14% | 1.20% | 1.30% | 1.29% |
Ratio of net investment income (loss) after custodian fee credits to average net assets | 0.15% | 0.23% | 0.07% | (0.05)% | (0.16)% | (0.39)% |
Portfolio turnover rate | 0%² | 12% | 5% | 5% | 6% | 7% |
¹Amount is less than $0.01 | ²Amount is less than 0.5% |
18 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund: Performance Summary
Average Annual Returns as of November 30, 2012
10 Years | 5 Years | 1 Year | Expense Ratio¹ | |
Amana Developing World Fund | n/a | n/a | 1.55% | 1.63% |
MSCI Emerging Markets Index | 15.48% | -1.58% | 11.68% | N/A |
Growth of $10,000
The Amana Developing World Fund commenced operations September 28, 2009. | Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged, and expense-free. Conversely, the Fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other operational costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on September 28, 2009, to an identical amount invested in the MSCI Emerging Markets Index, a broad-based international equity index. The graph shows that an investment in the Fund would have risen to $10,358 versus $11,028 in the Index. |
Past performance does not guarantee future results. The "Growth of $10,000" graph assumes the reinvestment of dividends and capital gains. It does not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares. ¹ By regulation, expense ratios shown in this table are as of the Funds' most recent prospectus which is dated September 14, 2012, and incorporates results for the fiscal year ended May 31, 2012. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different fiscal periods. |
Fund Objective
The primary objective of the Developing World Fund is long-term capital growth, consistent with Islamic principles.
Top Ten Holdings | Portfolio Diversification | ||
% of Fund Assets | Industry weightings are shown as a percentage of total net assets. | ||
Telekomunikasi Indonesia ADS | 2.9% | ||
MercadoLibre | 2.5% | ||
VF | 2.4% | ||
Bangkok Dusit Medical Services | 2.3% | ||
LATAM Airlines ADS | 2.2% | ||
Aspen Pharmacare | 2.2% | ||
Dr. Reddy's Laboratories ADS | 2.2% | ||
M. Dias Branco | 2.2% | ||
KPJ Healthcare | 2.1% | ||
Clicks Group | 2.1% | ||
Semi-Annual Report | November 30, 2012 | 19 |
Amana Developing World Fund: Schedule of Investments
Common Stocks — 81.0% | Number of Shares | Cost | Market Value | Country¹ | Percentage of Assets |
Communications | |||||
Internet Media | |||||
Baidu.com ADS² | 3,500 | $280,239 | $337,085 | China³ | 1.7% |
Telecom Carriers | |||||
America Movil ADS | 13,000 | 329,525 | 306,670 | Mexico | 1.5% |
Axiata Group | 95,000 | 175,405 | 184,961 | Malaysia | 0.9% |
Millicom International | 2,500 | 220,520 | 214,498 | Global4 | 1.1% |
MTN Group | 16,000 | 259,470 | 294,923 | South Africa | 1.5% |
Telefonica Brasil ADS | 15,000 | 371,442 | 329,100 | Brazil | 1.7% |
Telekomunikasi Indonesia ADS | 15,000 | 540,800 | 570,600 | Indonesia | 2.9% |
Telenor | 10,000 | 199,353 | 203,107 | Norway | 1.0% |
Turk Telekomunikasyon | 60,000 | 277,258 | 224,445 | Turkey | 1.1% |
2,373,773 | 2,328,304 | 11.7% | |||
2,654,012 | 2,665,389 | 13.4% | |||
Consumer Discretionary | |||||
Apparel, Footwear, Accessory Design | |||||
VF | 3,000 | 310,438 | 481,530 | Global4 | 2.4% |
Automobile OEM | |||||
Ford Otomotiv Sanayi | 40,000 | 378,513 | 409,898 | Turkey | 2.1% |
E-Commerce Discretionary | |||||
MercadoLibre | 7,000 | 500,586 | 503,650 | Brazil³ | 2.5% |
General Merchant Wholesalers | |||||
Li & Fung | 125,000 | 198,616 | 205,736 | China | 1.0% |
Passenger Transportation | |||||
LATAM Airlines ADS | 20,000 | 412,029 | 443,000 | Chile | 2.2% |
1,800,182 | 2,043,814 | 10.2% | |||
Consumer Staples | |||||
Food Manufacturing | |||||
Danone ADS | 25,000 | 324,890 | 319,500 | France | 1.6% |
IOI | 165,000 | 273,757 | 269,169 | Malaysia | 1.4% |
M. Dias Branco | 13,000 | 368,812 | 433,354 | Brazil | 2.2% |
Tiger Brands | 6,000 | 199,013 | 202,137 | South Africa | 1.0% |
1,166,472 | 1,224,160 | 6.2% | |||
Household Products Manufacturing | |||||
Colgate-Palmolive | 3,200 | 253,275 | 347,200 | Global4 | 1.7% |
Pharmacies & Drug Stores | |||||
Clicks Group | 60,000 | 355,423 | 425,336 | South Africa | 2.1% |
1,775,170 | 1,996,696 | 10.0% | |||
Continued on next page. |
20 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund: Schedule of Investments
Common Stocks — 81.0% | Number of Shares | Cost | Market Value | Country¹ | Percentage of Assets |
Energy | |||||
Exploration & Production | |||||
CNOOC ADS | 1,500 | $271,050 | $319,740 | China | 1.6% |
Pacific Rubiales | 8,000 | 241,327 | 174,521 | Colombia³ | 0.9% |
512,377 | 494,261 | 2.5% | |||
Integrated Oils | |||||
China Petroleum & Chemical ADS | 800 | 69,678 | 84,720 | China | 0.4% |
Petroleo Brasileiro ADS | 8,000 | 256,986 | 143,760 | Brazil | 0.7% |
Sasol ADS | 6,500 | 316,702 | 275,275 | South Africa | 1.4% |
643,366 | 503,755 | 2.5% | |||
1,155,743 | 998,016 | 5.0% | |||
Health Care | |||||
Cardiovascular Devices | |||||
Mindray Medical International ADS | 10,000 | 329,043 | 338,300 | China³ | 1.7% |
Generic Pharmaceuticals | |||||
Aspen Pharmacare | 25,000 | 372,311 | 440,255 | South Africa | 2.2% |
Dr. Reddy's Laboratories ADS | 13,000 | 383,565 | 436,020 | India | 2.2% |
Richter Gedeon | 1,000 | 199,260 | 164,184 | Hungary | 0.8% |
955,136 | 1,040,459 | 5.2% | |||
Health Care Facilities | |||||
Bangkok Dusit Medical Services | 125,000 | 368,757 | 456,208 | Thailand | 2.3% |
KPJ Healthcare | 220,000 | 270,186 | 426,803 | Malaysia | 2.1% |
638,943 | 883,011 | 4.4% | |||
Specialty Pharmaceuticals | |||||
Genomma Lab Internacional | 100,000 | 202,781 | 198,709 | Mexico | 1.0% |
Kalbe Farma | 3,500,000 | 287,372 | 375,676 | Indonesia | 1.9% |
Mead Johnson Nutrition | 6,000 | 352,781 | 409,140 | Global4 | 2.1% |
842,934 | 983,525 | 5.0% | |||
2,766,056 | 3,245,295 | 16.3% | |||
Industrials | |||||
Infrastructure Construction | |||||
Companhia de Concessoes Rodoviarias | 32,000 | 192,106 | 274,953 | Brazil | 1.4% |
Jasa Marga (Persero) | 500,000 | 309,264 | 297,054 | Indonesia | 1.5% |
501,370 | 572,007 | 2.9% | |||
Materials | |||||
Agricultural Chemicals | |||||
Quimica y Minera de Chile ADS | 6,000 | 333,494 | 339,600 | Chile | 1.7% |
Base Metals | |||||
Anglo American ADR | 25,000 | 466,612 | 346,750 | South Africa³ | 1.7% |
Freeport-McMoRan Copper & Gold | 9,000 | 415,920 | 351,090 | Indonesia³ | 1.8% |
Southern Copper | 11,000 | 380,053 | 399,300 | Peru³ | 2.0% |
1,262,585 | 1,097,140 | 5.5% | |||
Continued on next page. |
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 21 |
Amana Developing World Fund: Schedule of Investments
Common Stocks — 81.0% | Number of Shares | Cost | Market Value | Country¹ | Percentage of Assets |
Materials (continued) | |||||
Cement & Aggregates | |||||
PT Semen Gresik | 200,000 | $176,538 | $308,231 | Indonesia | 1.5% |
Precious Metal Mining | |||||
Alamos Gold | 22,500 | 371,705 | 423,567 | Mexico³ | 2.1% |
Gold Fields ADS | 25,000 | 302,323 | 307,000 | South Africa | 1.6% |
Impala Platinum ADR | 16,000 | 343,235 | 260,000 | South Africa | 1.3% |
1,017,263 | 990,567 | 5.0% | |||
Raw Material Suppliers | |||||
Vale ADS | 12,500 | 341,208 | 217,875 | Brazil | 1.1% |
Steel Producers | |||||
Tenaris ADS | 7,000 | 282,964 | 279,580 | Argentina³ | 1.4% |
3,414,052 | 3,232,993 | 16.2% | |||
Technology | |||||
Application Software | |||||
AutoNavi Holdings ADS² | 20,000 | 253,168 | 244,000 | China | 1.2% |
IT Services | |||||
Infosys ADS | 8,000 | 425,120 | 355,600 | India | 1.8% |
678,288 | 599,600 | 3.0% | |||
Utilities | |||||
Power Generation | |||||
Aboitiz Power | 350,000 | 286,596 | 303,998 | Philippines | 1.5% |
Companhia Paranaense de Energia-Copel ADS | 5,000 | 90,684 | 67,250 | Brazil | 0.3% |
377,280 | 371,248 | 1.8% | |||
Utility Networks | |||||
Enersis ADS | 10,000 | 215,250 | 169,500 | Chile | 0.8% |
Hong Kong & China Gas ADS | 100,000 | 258,462 | 271,000 | China | 1.4% |
473,712 | 440,500 | 2.2% | |||
850,992 | 811,748 | 4.0% | |||
Total investments | $15,595,865 | 16,165,558 | 81.0% | ||
Other assets (net of liabilities) | 3,782,506 | 19.0% | |||
Total assets | $19,948,064 | 100.0% | |||
¹ Country of domicile unless otherwise indicated ² Non-Income producing security ³ Denotes a country or region of primary exposure 4 Denotes a worldwide presence, comprising an entity with exposure to many regions and countries ADS: American Depositary Share |
22 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Amana Developing World Fund
Statement of Assets and Liabilities | ||
As of November 30, 2012 | ||
Assets | ||
Investments in securities, at value (Cost $15,595,865) | $16,165,558 | |
Cash | 4,434,745 | |
Receivable for Fund shares sold | 29,748 | |
Dividends | 12,484 | |
Total assets | 20,642,535 | |
Liabilities | ||
Payable for securities purchased | 664,408 | |
Payable to affiliates | 25,508 | |
Accrued expenses | 3,197 | |
Accrued distribution fee | 1,358 | |
Total liabilities | 694,471 | |
Net assets | $19,948,064 | |
Analysis of Net Assets | ||
Paid-in capital (unlimited shares authorized, without par value) | $19,858,254 | |
Undistributed net investment income | 3,555 | |
Accumulated net realized loss | (482,424) | |
Unrealized net apppreciation on investments | 568,679 | |
Net assets applicable to Fund shares outstanding | $19,948,064 | |
Fund shares outstanding | 1,927,965 | |
Net asset value, offering and redemption price per share | $10.35 |
Statement of Operations | ||
Period ended November 30, 2012 | ||
Investment income | ||
Dividends (net of foreign taxes of $14,020) | $156,793 | |
Miscellaneous income | 47 | |
Gross investment income | 156,840 | |
Expenses | ||
Investment adviser fees | 92,008 | |
Distribution fees | 24,213 | |
Shareowner servicing fees | 12,244 | |
Filing and registration fees | 10,865 | |
Retirement plan custodial fees | 5,212 | |
Professional fees | 2,845 | |
Custodian fees | 2,695 | |
Printing and postage | 2,313 | |
Trustee fees | 370 | |
Other expenses | 248 | |
Chief Compliance Officer expenses | 60 | |
Total gross expenses | 153,073 | |
Less custodian fee credits | (2,695) | |
Net expenses | 150,378 | |
Net investment income | $6,462 | |
Net realized loss from investments and foreign currency | $(30,659) | |
Net increase in unrealized appreciation on investments and foreign currency | 832,430 | |
Net gain on investments | $801,771 | |
Net increase in net assets resulting from operations | $808,233 |
Countries
The accompanying notes are an integral part of these financial statements. | Semi-Annual Report | November 30, 2012 | 23 |
Amana Developing World Fund
Statements of Changes in Net Assets | Period ended Nov. 30, 2012 | Year ended May 31, 2012 |
Increase (decrease) in net assets from operations: | ||
From operations | ||
Net investment income (loss) | $6,462 | $(17,697) |
Net realized loss on investments | (30,659) | (344,199) |
Net increase (decrease) in unrealized appreciation | 832,430 | (1,222,032) |
Net increase (decrease) in net assets | 808,233 | (1,583,928) |
Distributions to shareholders from | ||
Net investment income | - | (12,737) |
Capital share transactions | ||
Proceeds from sales of shares | 2,524,657 | 6,811,087 |
Value of shares issued in reinvestment of dividends | - | 12,663 |
Early redemption fees retained | 327 | 3,948 |
Cost of shares redeemed | (1,458,261) | (2,996,458) |
Net increase in net assets | 1,066,723 | 3,831,240 |
Total increase in net assets | 1,874,956 | 2,234,575 |
Net assets | ||
Beginning of period | 18,073,108 | 15,838,533 |
End of period | 19,948,064 | 18,073,108 |
Accumulated investment Income (loss) | $3,555 | $(2,907) |
Shares of the Fund sold and redeemed | ||
Number of shares sold | 244,736 | 656,980 |
Number of shares issued in reinvestment of dividends | - | 1,261 |
Number of shares redeemed | (141,711) | (289,358) |
Net increase in number of shares outstanding | 103,025 | 368,883 |
Financial Highlights | Period ended | Year ended May 31, | Period ended May 31, | |
Selected data per share of outstanding capital stock throughout each period: | Nov. 30, 2012 | 2012 | 2011 | 2010 |
Net asset value at beginning of period | $9.90 | $10.88 | $10.16 | $10.00 |
Income from investment operations | ||||
Net investment income (loss) | 0.001 | (0.01) | (0.06) | (0.05) |
Net gain (loss) on securities (both realized and unrealized) | 0.45 | (0.96) | 0.78 | 0.21 |
Total from investment operations | 0.45 | (0.97) | 0.72 | 0.16 |
Less distributions | ||||
Dividends | - | (0.01) | - | - |
Total distributions | - | (0.01) | - | - |
Paid-in capital from early redemption fees | 0.00¹ | 0.00¹ | 0.00¹ | 0.00¹ |
Net asset value at end of period | $10.35 | $9.90 | $10.88 | $10.16 |
Total return | 4.55% | (8.94)% | 7.09% | 1.60% |
Ratios / supplemental data | ||||
Net assets ($000), end of period | $19,948 | $18,073 | $15,839 | $9,096 |
Ratio of expenses to average net assets | ||||
Before custodian fee credits | 0.79% | 1.63% | 1.61% | 1.59%² |
After custodian fee credits | 0.78% | 1.61% | 1.60% | 1.58%² |
Ratio of net investment income (loss) after custodian fee credits to average net assets | 0.03% | (0.10)% | (0.63)% | (1.14)%² |
Portfolio turnover rate | 1% | 12% | 2% | 5% |
¹Amount is less than $0.01 | ²Since inception date 9/28/09, annualized |
24 | Semi-Annual Report | November 30, 2012 | The accompanying notes are an integral part of these financial statements. |
Notes To Financial Statements
Note 1 — Organization
Amana Mutual Funds Trust (the "Trust") was established under Indiana law as a Business Trust on July 26, 1984. The Trust is registered as a no-load, open-end, diversified series management investment company under the Investment Company Act of 1940, as amended. The Trust restricts its investments to those acceptable to Muslims by investing in accordance with Islamic principles. Three portfolio series have been created. The Income Fund was first authorized to sell shares of beneficial interest to the public on June 23, 1986. The investment objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles. Current income is its primary objective. The Growth Fund began operations on February 3, 1994. The investment objective of the Growth Fund is long-term capital growth, consistent with Islamic principles. The Developing World Fund began operations on September 28, 2009. The investment objective of the Developing World Fund is long-term capital growth, consistent with Islamic principles.
Note 2 — Unaudited Information
The information in this interim report has not been subject to independent audit.
Note 3 — Significant Accounting Policies
The following is a summary of the significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Funds in preparation of their financial statements.
Security valuation:
Investments in securities traded on a national securities exchange and over-the-counter securities for which sale prices are available are valued at that price. Securities for which there are no sales are valued at latest bid price.
Foreign markets may close before the time as of which the Funds' share prices are determined. Because of this, events occurring after the close and before the determination of the Funds' share prices may have a material effect on the values of some or all of the Funds' foreign securities. To account for this, the Funds may use outside pricing services for valuation of their non-U.S. securities.
In cases in which there is not a readily available market price, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.
Security transactions are recorded on trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.
Foreign currency:
Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
Share valuation:
The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds' shares are not priced or traded on days the NYSE is closed. The NAV is the offering and redemption price per share.
The Trustees have adopted certain policies and procedures with respect to frequent trading of Fund shares. The Funds are intended for long-term investment and do not permit rapid trading of their shares. The Funds cannot always identify all intermediaries, or detect or prevent trading that violates the Frequent Trading Policy through intermediaries or omnibus accounts.
Fair value measurements:
The Funds have adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below.
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.
Level 2 — Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement. Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3.
Semi-Annual Report | November 30, 2012 | 25 |
Notes To Financial Statements (continued)
Share Valuation Inputs as of November 30, 2012 | ||||
Funds | Total | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant Unobservable Input |
Income Fund | ||||
Common Stocks | $1,233,412,464 | $1,233,412,464 | $- | $- |
Halal Income | $5,333,305 | $- | $5,333,305 | $- |
Total Assets | $1,238,745,769 | $1,233,412,464 | $5,333,305 | $- |
Growth Fund | ||||
Common Stocks | $2,013,285,626 | $2,013,285,626 | $- | $- |
Total Assets | $2,013,285,626 | $2,013,285,626 | $- | $- |
Developing World Fund | ||||
Common Stocks | $16,165,558 | $9,759,970 | $6,405,588 | $- |
Total Assets | $16,165,558 | $9,759,970 | $6,405,588 | $- |
During the period ended November 30, 2012, no Fund had transfers between Level 1 and Level 2. |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The table above is a summary of the inputs used as of November 30, 2012 in valuing the Funds' investments carried at value.
New accounting pronouncement:
In May 2011, FASB issued ASU No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements" in GAAP and the International Financial Reporting Standards ("IFRSs"). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years.
Derivative instruments and hedging activities:
The Funds have adopted the financial accounting reporting rules required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification. The Funds are required to include enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position.
During the period ended November 30, 2012, the Funds did not hold any derivative instruments.
Investment concentration:
The fundamental policies of the Funds prohibit earning interest, in accordance with Islamic principles. Consequently, cash is held in non-interest-bearing deposits with the Funds' custodian or other banks. "Other assets (net of liabilities)" in the Funds' Schedules of Investments primarily represents cash on deposit with the custodian. Cash on deposit will vary widely over time. Accounting Standards Codification ("ASC") 825, "Financial Instruments," identifies these items as a concentration of credit risk, requiring disclosure regardless of the degree of risk. The risk is managed by careful financial analysis and review of the custodian's operations, resources, and protections available to the Trust. This process includes evaluation of other financial institutions providing investment company custody services.
Federal income taxes:
The Funds intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareowners sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision is required.
The Funds recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Funds' tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2009 — 2011), or expected to be taken in the Funds' 2012 tax returns. The Funds identify their major tax jurisdiction as U.S. Federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Reclassification of capital accounts:
Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV. These reclassifications were due to over-distribution and a net investment loss.
Income Fund | Growth Fund | Developing World Fund | |
Undistributed net income | $(5,564) | $(2,400) | $27,527 |
Accumulated gains (losses) | $5,564 | $2,400 | $4,989 |
Paid in capital | $- | $- | $(32,516) |
Distributions to shareowners:
Dividends from equity securities and distributions to shareowners, which are determined in accordance with income tax regulations, are recorded as income on the ex-dividend date.
Dividends and distributions are payable at the end of December and May. As a result of their investment strategies, the Growth and
26 | Semi-Annual Report | November 30, 2012 |
Notes To Financial Statements (continued)
Developing World Funds do not expect to pay income dividends. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take dividends in cash.
Use of estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the reporting period. Actual results could differ from those estimates.
Other:
The Funds record security transactions based on a trade date. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis.
Expenses incurred by the Trust on behalf of the Funds (e.g., professional fees) are allocated to the Funds on the basis of relative daily average net assets. Net investment losses may not be utilized to offset net investment income in future periods for tax purposes. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and rates.
Note 4 — Transactions with Affiliated Persons
Under a contract approved annually by Amana's independent trustees, Saturna Capital provides investment advisory services and certain other administrative and distribution services and facilities required to conduct Trust business. For such services, each Fund pays an advisory fee of 0.95% on the first $500 million of a fund's average daily net assets, 0.85% on the next $500 million, 0.75% on the next $500 million, and 0.65% on assets over $1.5 billion. For the period ended November 30, 2012, the Funds paid the following advisory fees to Saturna Capital:
Income Fund | Growth Fund | Developing World Fund | |
Advisory fees | $5,685,786 | $8,767,246 | $92,008 |
Certain officers and one trustee of Amana are also officers and directors of the investment adviser.
Saturna Capital also acts as transfer agent for the Trust. Beginning October 1, 2012, Saturna voluntarily reduced the base transfer agency fee by 85%, from $1.65 to $0.25 per account per month. For the period ended November 30, 2012 the Funds paid the following transfer agent fees to Saturna Capital:
Income Fund | Growth Fund | Developing World Fund | |
Transfer Agent fees | $304,501 | $496,893 | $12,244 |
Saturna Brokerage Services, Inc. ("SBS"), a subsidiary of Saturna Capital, is registered as a broker-dealer and acts as distributor. The Funds have adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act. The plan provides that the Funds will pay a fee to SBS at an annual rate of up to 0.25% of the average net assets of the Funds. The fee is paid to SBS as reimbursement for expenses incurred for distribution-related activity. For the period ended November 30, 2012, the Funds paid the following distribution fees to SBS:
Income Fund | Growth Fund | Developing World Fund | |
Distribution (12b-1) fees | $1,644,577 | $2,793,514 | $24,213 |
For the period ended November 30, 2012, Saturna Capital spent $1,763,625 from additional resources of its own, and not part of the 12b-1 expense of the Funds, to compensate broker-dealers or other financial intermediaries, or their affiliates, in connection with the sale, distribution, retention, and/or servicing of Fund shares. To the extent that these resources are derived from advisory fees paid by the Funds, these payments could be considered "revenue sharing." Any such payments will not change the net asset value or the price of a Fund's shares.
SBS is the primary broker used to effect portfolio transactions for the Trust and currently executes portfolio transactions for the Trust for free (no commissions). Should any change occur in this policy, shareowners would be notified. Transactions effected through other brokers may be subject to a commission payable to that broker.
Saturna Trust Company ("STC"), a subsidiary of Saturna Capital, acts as retirement plan custodian for Fund shareowners. For the period ended November 30, 2012, the Funds paid the following retirement plan custodial fees to STC:
Income Fund | Growth Fund | Developing World Fund | |
Retirement plan custodial fees | $28,036 | $38,048 | $5,212 |
Mr. Nicholas Kaiser serves as a trustee and president of the Trust. He is also a director and the chairman of Saturna Capital, Satruna Brokerage Services, and Saturna Trust Company. He is not compensated by the Trust. For the period ended November 30, 2012, the Trust incurred compensation expenses of $35,500 which is included in $44,610 of total expenses for the independent Trustees.
Income Fund | Growth Fund | Developing World Fund | |
Trustee Fees | $13,949 | $21,390 | $161 |
Other Trustee expenses | $18,242 | $26,159 | $209 |
The officers of the Trust are paid by Saturna Capital, and not the Trust, except for the Chief Compliance Officer who is partially compensated by the Trust. For the period ended November 30, 2012, the Trust paid the following related to the expense of its Chief Compliance Officer:
Income Fund | Growth Fund | Developing World Fund | |
Chief Compliance Officer | $4,465 | $7,344 | $60 |
On November 30, 2012, the trustees, officers, and their affiliates as a group owned 0.22% of the Income Fund's, 0.11% of the Growth Fund's, and 7.06% of the Developing World Fund's outstanding shares.
Semi-Annual Report | November 30, 2012 | 27 |
Notes To Financial Statements (continued)
Note 5 — Distributions to Shareowners
The tax characteristics of distributions paid for the fiscal period ended November 30, 2012, and fiscal year ended May 31, 2012, were as follows (note: short-term capital gains are considered ordinary income for federal tax purposes):
Income Fund | Nov. 30, 2012 | May 31, 2012 |
Ordinary income | $- | $20,092,368 |
Long-term capital gain¹ | $- | $6,754,395 |
Growth Fund | Nov. 30, 2012 | May 31, 2012 |
Ordinary income² | $- | $863,127 |
Developing World Fund | Nov. 30, 2012 | May 31, 2012 |
Ordinary income² | $- | $12,737 |
¹ Long-term capital gain dividend designated pursuant to Section 852(b)(3) of the Internal Revenue Code.
² By policy, the Growth and Developing World Funds seek to avoid paying income dividends.
The cost basis of investments for federal income tax purposes at November 30, 2012, were as follows:
Income Fund | Growth Fund | Developing World Fund | |
Cost of Investments | $962,150,407 | $1,458,969,219 | $15,595,865 |
Gross unrealized appreciation | $305,804,821 | $661,050,653 | $1,694,129 |
Gross unrealized depreciation | $(29,209,459) | $(106,734,246) | $(1,124,436) |
Net unrealized appreciation | $276,595,362 | $554,316,407 | $569,693 |
As of May 31, 2012, the components of distributable earnings on a tax basis were as follows:
Income Fund | |
Undistributed ordinary income | $514,459 |
Tax accumulated earnings | $514,459 |
Accumulated capital gains | $256,708 |
Other accumulated losses | $(478) |
Unrealized appreciation | $193,096,593 |
Total accumulated earnings | $193,867,282 |
Growth Fund | |
Undistributed ordinary income | $3,955,646 |
Tax accumulated earnings | $3,955,646 |
Accumulated capital losses | $(6,474,869) |
Unrealized appreciation | $485,472,504 |
Total accumulated earnings | $482,953,281 |
Developing World Fund | |
Accumulated capital and other losses | $(454,672) |
Unrealized depreciation | $(269,735) |
Other unrealized gains | $5,984 |
Total accumulated earnings | $(718,423) |
Note 6 — Federal Income Taxes
At May 31, 2012, the Funds had the following capital loss carryforwards, subject to regulation. Prior to their expiration, such loss carryforwards may be used to offset future net capital gains realized for federal income tax purposes.
Income Fund | Growth Fund | Developing World Fund | |
Capital loss carryforwards expiring 2018 | $- | $1,658,283 | $- |
Capital loss carryforwards expiring 2019 | $- | $4,816,586 | $19,458 |
Short-term loss carryforwards unlimited expiration | $- | $- | $80,819 |
Long-term loss carryforwards unlimited expiration | $- | $- | $23,299 |
Post-October loss deferral¹ | $478 | $- | $331,096 |
¹ Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of a fund's next taxable year.
Income Fund | Growth Fund | Developing World Fund | |
Utilized Capital loss carryforward expiring 2017 | $374,968 | $5,052,143 | $- |
Utilized Capital loss carryforward expiring 2018 | $8,178,000 | $6,391,262 | $- |
Utilized Capital loss carryforward expiring 2019 | $4,556,243 | $- | $- |
Total Capital loss carryforward utilized at May 31, 2012 | $13,109,211 | $11,443,405 | $- |
Note 7 — Investments
During the period ended November 30, 2012, the Funds purchased and sold the following amounts of securities.
Purchases | Sales | |
Income Fund | $- | $- |
Growth Fund | $8,731,646 | $92,536,683 |
Developing World Fund | $4,408,538 | $156,652 |
Note 8 — Custodian
Under agreements in place with the Trust's custodian, BNY Mellon, custody fees are reduced by credits for cash balances. For the period ended November 30, 2012, such reductions were as follows:
Income Fund | Growth Fund | Developing World Fund | |
Custodian Fee Credits | $30,523 | $51,841 | $2,695 |
Note 9 — Subsequent Events
In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
Dec. 31, 2012 Distributions (amounts per share) | Income Fund | Growth Fund | Developing World Fund |
Short-term capital gain | $0.0116 | $- | $- |
Qualified income dividends | $0.30 | $0.0683 | $- |
28 | Semi-Annual Report | November 30, 2012 |
Expenses
All mutual funds have operating expenses. As an Amana Mutual Fund shareowner, you incur ongoing costs, including management fees, distribution (or service) 12b-1 fees, and other Fund expenses such as shareowner reports (like this one). Operating expenses, which are deducted from a fund's gross earnings, directly reduce the investment return of a fund. Mutual funds (unlike other financial investments) only report their results after deduction of operating expenses.
With the Amana Funds, unlike many mutual funds, you do not incur sales charges (loads) on purchases, reinvested dividends, or other distributions. You do not incur redemption fees, exchange fees, or fees related to Saturna Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
Examples
The following examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2012 to November 30, 2012).
Actual Expenses
The first line for each Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. The Funds also charge the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $25 per domestic bank wire, $35 per international bank wire, or overnight courier delivery charges.
Hypothetical Example For Comparison Purposes
The second line for each Fund provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees charged by custodians other than Saturna Trust Company (note that there are no fees on Saturna IRAs, ESAs, or HSAs with the Amana Funds), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or exchange fees (note that the Amana Funds do not assess any such transactional costs). Therefore, the "Hypothetical" line of each fund is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
Beginning Account Value [June 1, 2012] | Ending Account Value [November 30, 2012] | Expenses Paid During Period | Annualized Expense Ratio | |
Income Fund | ||||
Actual | $1,000.00 | $1,074.30 | $6.24 | 1.20% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.05 | $6.07 | 1.20% |
Growth Fund | ||||
Actual | $1,000.00 | $1,050.20 | $5.76 | 1.12% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.45 | $5.67 | 1.12% |
Developing World Fund | ||||
Actual | $1,000.00 | $1,045.50 | $8.00 | 1.56% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.25 | $7.89 | 1.56% |
Expenses are equal to annualized expense ratios indicated above (based on the most recent semi-annual period of June 1, 2012, through November 30, 2012), multiplied by the average account value over the period, multiplied by 183/365 to reflect the semi-annual period.
Semi-Annual Report | November 30, 2012 | 29 |
Renewal of Investment Advisory Contract
During their meeting of September 10, 2012, Amana's Trustees discussed the Trust's various operating agreements. They focused on renewing the agreements of each of the three Funds of the Trust with Saturna Capital Corporation ("Saturna"), and discussed the nature, extent, and quality of the services provided by Saturna. The Trustees took into consideration that the Funds offer unique services for Islamic investors. The Trustees discussed Saturna's experience, ability and commitment to quality in-house service through performing internally such functions as shareowner servicing, administration, retirement plan and Trust services, accounting, marketing, and distribution — in addition to investment management.
The Trustees took into consideration Saturna's continued avoidance of significant operational problems, as well as its substantial investments in premises, personnel, training and equipment to meet investor needs. They recognized Saturna's efforts to recruit and retain increasingly qualified, experienced and specialized staff and to improve the capital base on which Saturna operates, which the Trustees believe is important to the long-term success of the Funds. They appreciate Saturna's focus on investors, avoiding potential conflicts of interest.
The Trustees found that the long-term investment performance of the Growth, Income and Developing World Funds, both in absolute numbers and relative to peers, continued to be good in a volatile period, reflecting Saturna's cautious investment style. The Trustees found that Saturna managed the Funds to continue to be an acceptable investment for Muslims as well as being highly attractive to all kinds of equity investors. They understood that Islamic restrictions increase Saturna's research expenses and obligations, and impose major constraints on Saturna's selection of portfolio investments.
The Trustees noted, in particular, that the superior performance of the Amana Funds has been recognized by independent rating organizations. As of August, 2012, Lipper's Leader Scorecard ranked Amana Growth in the second quintile of its U.S. Multi-Cap Growth category on total return, tax efficiency and expense — and first quintile for preservation. Lipper's Leader Scorecard ranked Amana Income in the second quintile of its U.S. Equity Income category on total return, and first quintile for preservation and tax efficiency. Additionally, Amana Income won a 2012 Lipper Award for its 10-year performance in the U.S. Equity Income category, its fourth Lipper Award overall. And as of July 31, 2012, Morningstar continued to give both Funds its top 5-Star rating overall. For the 10-year period ending July 31, both the Income and Growth funds rank in the top 1% of their respective Morningstar U.S. categories. Globally, Failaka Advisors again recognized the Amana Funds at their annual Islamic Fund Awards ceremony held in April 2012. Amana Growth won Failaka's 2011 Best U.S. Equity Fund awards for the 5-year and 10-year periods ended December 31, 2011. The Developing World Fund has not operated long enough to have longer-term performance information to review. The Trustees found such information helpful in establishing expectations regarding the performance of the adviser and whether to continue the advisory contract.
The Trustees reviewed the fees and expenses of the Funds. They found each Fund's expense ratio compared favorably to retail funds in its peer group and to be fair given the size of each Fund, the services provided and expenses incurred by Saturna. The steady lowering of the expense ratios continued for another year. Expenses related to distribution, paid to unaffiliated intermediaries, was the largest category. The Trustees recognized that the Funds' positive performance record had likely contributed to their growth in asset size, which resulted in lower expense ratios due to rising fixed costs being spread over a larger asset base.
The Trustees reviewed Saturna's financial information and discussed the issue of profitability related to management and administration of the Funds, as well as the reasonability of profitability with respect to each of the Funds as part of their evaluation of whether the fees under the advisory contract bear a reasonable relationship to the mix of services provided by Saturna, including the nature, extent and quality of such services. The Trustees noted Saturna's use of its resources and revenues to pay for marketing and distribution activities, as well as for payments to intermediaries and platforms to support shareowner servicing that benefit shareowners.
The Trustees considered the extent to which advisory fees paid to Saturna reflect economies of scale. The Trustees noted that Saturna has voluntarily included breakpoints within the Growth and the Income Funds' advisory fee structures. Fee breakpoints not only result in lowering operating expenses of the Funds and lower expense ratios but also demonstrate that economies of scale are being shared with shareowners.
The Trustees considered the fees charged by Saturna to other kinds of accounts and the different services provided to those accounts, as well as the ways in which Saturna's services and work done for other accounts it manages benefit the Funds.
The Trustees considered potential benefits to Saturna from acting as investment adviser and noted that there were no soft dollar arrangements with respect to trading in the Funds' portfolios. In fact, Saturna voluntarily waives brokerage commissions for Fund portfolio trades executed through its affiliated broker at considerable cost to Saturna, which results in savings to Fund shareowners.
The Trustees concluded that the fees paid by the Funds to Saturna were reasonable in light of the services provided; comparative performance; expenses and fees; costs of services provided and profits to be realized; and benefits derived by Saturna from its relationship with the Funds. Following this discussion, the Trustees unanimously agreed to renew the Amana Growth, Amana Income, and Amana Developing World Funds' investment Advisory and Administration Agreements.
30 | Semi-Annual Report | November 30, 2012 |
Availability of Quarterly Portfolio Information
(1) The Amana Funds file complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.
(2) The Funds' Forms N-Q are available on the SEC's website at www.sec.gov.
(3) The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800/SEC-0330.
(4) The Funds make a complete schedule of portfolio holdings after the end of each month available at www.amanafunds.com.
Availability of Proxy Voting Information
(1) A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-888/73-AMANA; (b) on the Funds' website at www.amanafunds.com; and (c) on the SEC's website at www.sec.gov.
(2) Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-888/73-AMANA; (b) on the Funds' website at www.amanafunds.com; and (c) on the SEC's website at www.sec.gov.
Privacy Statement
At Saturna Capital and the Amana Mutual Funds Trust, we understand the importance of maintaining the privacy of your financial information. We want to assure you that we protect the confidentiality of any personal information that you share with us. In addition, we do not sell information about our current or former customers.
In the course of our relationship, we gather certain non-public information about you, including your name, address, investment choices, and account information. We do not disclose your information to unaffiliated third parties unless it is necessary to process a transaction; service your account; deliver your account statements, shareholder reports and other information; or as required by law. When we disclose information to unaffiliated third parties, we require a contract to restrict the companies' use of customer information and from sharing or using it for any purposes other than performing the services for which they were required.
We may share information within the Saturna Capital family of companies in the course of informing you about products or services that may address your investing needs.
We maintain our own technology resources to minimize the need for any third party services, and restrict access to information within Saturna. We maintain physical, electronic, and procedural safeguards to guard your personal information. If you have any questions or concerns about the security or privacy of your information please call us at 1-800/SATURNA (1-800-728-8762)
Householding Policy
To reduce expenses, we may mail only one copy of the Funds' prospectus, each annual and semi-annual report, and proxy statements, when necessary, to those addresses shared by two or more accounts. If you wish to receive individual and/or more copies of these documents, please call us at 888/73-AMANA or write to us at Saturna Capital/Amana Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you individual copies thirty days after receiving your request.
If you are currently receiving multiple copies and wish to receive only one copy, please call us at 888/73-AMANA or write to us at Saturna Capital/Amana Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you a single copy with subsequent report mailings.
Semi-Annual Report | November 30, 2012 | 31 |
Amana Mutual Funds Trust began operations in 1986. Saturna Capital Corporation, with extensive experience in mutual funds, invests the Trust's portfolios and handles daily operations under supervision of Amana's Board of Trustees. 1300 N. State Street | Investment Adviser, Administrator, and Transfer Agent | Saturna Capital Corporation Bellingham, WA |
Custodian | BNY Mellon Brooklyn, NY | |
Independent Registered Public Accounting Firm | Tait, Weller & Baker LLP Philadelphia, PA | |
Legal Counsel | K & L Gates LLP Washington, DC |
This report is for the information of the shareowners of the Funds. It is not authorized for distribution to prospective investors unless it is accompanied or preceded by an effective prospectus.
Item 2. Code of Ethics
Registrant has adopted a code of ethics and is included with this submission as Exhibit (a)(1). It may also be found on Registrant's website at http://www.amanafunds.com/retail/ethics.shtml.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
Proposals submitted to a vote by security holders are included as part of the report to shareholders under Item 1 of this Form.
Item 11. Controls and Procedures
(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On December 27, 2012, Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer) reviewed the internal control procedures for Amana Mutual Funds Trust and found them reasonable and adequate.
(b) No change.
Item 12. Exhibits
Exhibits included with this filing:
(a)(1) Code of Ethics.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AMANA MUTUAL FUNDS TRUST
By:
(s) Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 23, 2013
Date
Pursuant to the requirements of the Securities Exchange Act of 1940, this report has been signed below by the following persons on behald of the registrant and in the capacities indicated.
By:
(s) Nicholas Kaiser, President
Signature and Title
Nicholas Kaiser, President
Printed name and Title
January 23, 2013
Date
By:
(s) Christopher Fankhauser, Treasurer
Signature and Title
Christopher Fankhauser, Treasurer
Printed name and Title
January 23, 2013
Date
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