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Investment Process

Saturna Capital, the Funds' investment adviser, screens more than 10,000 U.S. traded equities monthly. Roughly half are accepted (ranked A by analysts). Marginal issues receive rankings of B, C & D. About one-tenth are rejected outright (ranked F).

Average Results of Amana's Islamic Screens

Business sector screens eliminate companies involved in:

  • interest (banking and insurance)
  • alcohol
  • gambling
  • pork
  • pornography

Financial screens eliminate companies with:

  • greater than 5% of their revenue coming from haram, or unacceptable, sources (such as those listed above)
  • greater than 33% total debt as compared to their market capitalization (trailing 12 month average)
  • greater than 45% accounts receivable as compared to their total assets (trailing 12 month average)

These screening guidelines help ensure that investments meet the requirements of the Islamic faith and were established by Saturna Capital in collaboration with the Fiqh Council of North America (FCNA), a non-profit organization serving the Muslim community.

 

Our Disciplined Approach

At Saturna Capital and the Amana Mutual Funds, we strive for excellence in everything we do — from portfolio management to ensuring that our clients continue to receive the exemplary customer service they have come to expect.

We are primarily long-term investors, seeking to preserve and grow clients' capital over time. In making investments, we are value-oriented; we are reluctant to pay a premium for a stock and endeavor to buy stocks when they are out of favor with the market. We seek companies that represent high quality operations, with large free cash flows, sustainable growth rates, increasing dividends, low price volatility, stable earnings, and strong balance sheets free of excessive debt. We favor companies in which management has a considerable stake, and often sell those issues and industries in which the insiders are liquidating.

We advocate ethical investing, believing that companies with effective corporate responsibility policies are better positioned to avoid crises that could lead to reputation damage, higher costs, lost production, and fraudulent operations. We consider environmental, social, and corporate governance issues during the investment selection process as they can positively, or negatively, impact the performance of investment portfolios.