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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY


Investment Company Act file number: 811-04276

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, 2014
Date of reporting period: August 30, 2013

 

 

Item 1. Schedule of Investments

The unaudited schedule of investments as of the close of the reporting period is as follows:

Amana Mutual Funds Trust, Income Fund
 
Common Stock Number of Shares Market Value Percentage of Assets
Communications
Local Media
Pearson ADS 300,000 $5,892,000 0.4%
 
Telecom Carriers
Chunghwa Telecom ADS 555,154 17,459,593 1.2%
Telstra ADR 150,000 3,270,000 0.2%
Telus 168,000 5,169,360 0.4%
Vodafone Group ADS 250,000 8,087,500 0.6%
33,986,453 2.4%
39,878,453 2.8%
 
Consumer Discretionary
Apparel, Footwear, Accessory Design
Nike 620,000 38,948,400 2.7%
 
Auto Parts
Johnson Controls 600,000 24,318,000 1.7%
 
Automotive Wholesale
Genuine Parts 400,000 30,804,000 2.2%
 
Home Improvement
Stanley Black & Decker 100,000 8,526,000 0.6%
102,596,400 7.2%
 
Consumer Staples
Beverages
PepsiCo 400,000 31,892,000 2.2%
 
Food Manufacturing
General Mills 600,000 29,592,000 2.1%
JM Smucker 250,000 26,535,000 1.8%
Kellogg 465,000 28,230,150 2.0%
McCormick & Co 300,000 20,295,000 1.4%
104,652,150 7.3%
 
Household Products Manufacturing
Colgate-Palmolive 600,000 34,662,000 2.4%
Kimberly-Clark 300,000 28,044,000 2.0%
Procter & Gamble 400,000 31,156,000 2.2%
Unilever ADS 325,000 12,408,500 0.9%
106,270,500 7.5%
242,814,650 17.0%
 
Energy
Exploration & Production
EnCana 432,000 7,387,200 0.5%
 
Integrated Oils
Cenovus 400,000 11,496,000 0.8%
ConocoPhillips 330,000 21,879,000 1.5%
Exxon Mobil 350,000 30,506,000 2.1%
Total ADS 375,000 20,741,250 1.5%
84,622,250 5.9%
 
Refining & Marketing
Phillips 66 165,000 9,421,500 0.7%
101,430,950 7.1%
 
Health Care
Health Care Supplies
Becton, Dickinson & Co. 210,000 20,449,800 1.4%
 
Large Pharmaceuticals
Abbott Laboratories 350,000 11,665,500 0.8%
AbbVie 350,000 14,913,500 1.1%
AstraZeneca ADS 260,000 12,794,600 0.9%
Bristol-Myers Squibb 800,000 33,352,000 2.3%
Eli Lilly 620,000 31,868,000 2.2%
GlaxoSmithKline ADS 600,000 30,534,000 2.2%
Johnson & Johnson 331,500 28,644,915 2.0%
Novartis ADS 450,000 32,841,000 2.3%
Pfizer 1,200,000 33,852,000 2.4%
230,465,515 16.2%
250,915,315 17.6%
 
Industrials
Aerospace & Defense Parts
United Technologies 250,000 25,025,000 1.8%
 
Flow Control Equipment
Parker Hannifin 275,000 27,486,250 1.9%
 
Industrial Automation Controls
Emerson Electric 450,000 27,166,500 1.9%
Honeywell International 420,000 33,419,400 2.3%
60,585,900 4.2%
 
Industrial Machinery Manufacturing
Regal-Beloit 100,000 6,370,000 0.4%
 
Industrial Supply Distribution
W.W. Grainger 150,000 37,102,500 2.6%
 
Measurement Instruments
Rockwell Automation 325,000 31,599,750 2.2%
 
Post & Courier Services
United Parcel Service 300,000 25,674,000 1.8%
 
Rail Freight Transportation
Canadian National Railway 332,000 31,118,360 2.2%
244,961,760 17.1%
 
Materials
Base Metals
Freeport-McMoRan Copper & Gold 440,000 13,296,800 0.9%
 
Basic & Diversified Chemicals
Air Products & Chemicals 250,000 25,535,000 1.8%
Methanex 300,000 13,947,000 1.0%
PPG Industries 200,000 31,242,000 2.2%
Praxair 220,000 25,828,000 1.8%
96,552,000 6.8%
Containers & Packaging Manufacturing
3M 260,000 29,530,800 2.1%
Illinois Tool Works 500,000 35,735,000 2.5%
65,265,800 4.6%
Roofing Materials Manufacturing
Carlisle 460,000 30,636,000 2.1%
 
Specialty Chemicals
BASF ADR 140,000 12,236,000 0.9%
E.I. du Pont de Nemours 400,000 22,648,000 1.6%
RPM International 180,000 6,116,400 0.4%
41,000,400 2.9%
Steel Producers
Nucor 250,000 11,372,500 0.8%
Tenaris ADS 110,000 4,864,200 0.3%
16,236,700 1.1%
262,987,700 18.4%
 
Technology
Information Services
Dun & Bradstreet 150,000 14,922,000 1.1%
 
Infrastructure Software
Microsoft 1,000,000 33,400,000 2.3%
 
Semiconductor Capital Equip
Taiwan Semiconductor ADS 1,500,000 24,840,000 1.7%
 
Semiconductor Devices
Intel 1,200,000 26,376,000 1.9%
Microchip Technology 600,000 23,286,000 1.6%
49,662,000 3.5%
122,824,000 8.6%
 
Utilities
Utility Networks
Enersis ADS 175,000 2,765,000 0.2%
National Fuel Gas 170,000 11,097,600 0.8%
13,862,600 1.0%
 
Total Common Stocks   $1,382,271,828 96.8%


Halal Income Coupon/Maturity Face Amount Market Value Percentage of Assets
Sukuk
Malaysian Government
1Malaysia Sukuk 3.928% due 06/04/2015 $5,000,000 $5,203,780 0.3%
$5,000,000 $5,203,780 0.3%
 
Total investments (Cost = $924,049,525) 1,387,475,608 97.1%
Other assets (net of liabilities) 41,102,005 2.9%
Total net assets $1,428,577,613 100.0%
 
ADS: American Depositary Share
ADR: American Depositary Receipt


Amana Mutual Funds Trust, Growth Fund
 
Common Stocks Number of Shares Market Value Percentage of Assets
Communications  
Internet Media  
Google1 85,000 $71,986,500 3.5%
 
Local Media  
John Wiley & Sons 100,000 4,380,000 0.2%
 
Telecom Carriers  
Akamai Technologies1 1,000,000 45,980,000 2.3%
122,346,500 6.0%
 
Consumer Discretionary  
Auto Parts  
Gentex 700,000 15,771,000 0.8%
 
Automotive Wholesale  
Genuine Parts 125,000 9,626,250 0.4%
 
General Merchant Wholesalers  
Fastenal 800,000 35,192,000 1.7%
 
Home Products Stores  
Lowe's 790,000 36,197,800 1.8%
 
Other Specialty Retail - Discretionary  
PetSmart 660,000 46,483,800 2.3%
 
Passenger Transportation  
LATAM Airlines ADS 474,762 5,972,506 0.3%
 
Specialty Apparel Stores  
TJX Companies 900,000 47,448,000 2.3%
Urban Outfitters1 500,000 20,965,000 1.0%
68,413,000 3.3%
 
Toys & Games  
Mattel 200,000 8,100,000 0.4%
225,756,356 11.0%
 
Consumer Staples  
Beverages  
Monster Beverage1 500,000 28,695,000 1.4%
PepsiCo 600,000 47,838,000 2.3%
76,533,000 3.7%
 
Food Manufacturing  
Danone ADR 410,674 6,151,896 0.3%
 
Household Products Manufacturing  
Church & Dwight 800,000 47,480,000 2.3%
Clorox 475,000 39,282,500 1.9%
Estee Lauder 640,000 41,830,400 2.1%
128,592,900 6.3%
211,277,796 10.3%
 
Energy  
Exploration & Production  
EnCana 350,000 5,985,000 0.3%
 
Integrated Oils  
Cenovus 600,000 17,244,000 0.8%
Suncor Energy 700,000 23,709,000 1.2%
40,953,000 2.0%
46,938,000 2.3%
 
Health Care  
Biotech  
Amgen 585,000 63,729,900 3.1%
Celgene1 100,000 13,998,000 0.7%
77,727,900 3.8%
 
Health Care Facilities  
VCA Antech1 670,000 18,284,300 0.9%
 
Health Care Supply Chain  
Express Scripts1 650,000 41,522,000 2.0%
 
Large Pharmaceuticals  
Eli Lilly 650,000 33,410,000 1.6%
Johnson & Johnson 600,000 51,846,000 2.6%
Novartis ADS 650,000 47,437,000 2.3%
Novo Nordisk ADS 220,000 36,726,800 1.8%
169,419,800 8.3%
 
Managed Care  
Humana 300,000 27,624,000 1.4%
 
Medical Equipment  
Dentsply International 700,000 29,393,000 1.4%
 
Orthopedic Devices  
Stryker 300,000 20,067,000 1.0%
Zimmer 132,000 10,439,880 0.5%
30,506,880 1.5%
394,477,880 19.3%
 
Industrials  
Building Sub-Contractors  
EMCOR 700,000 26,313,000 1.3%
 
Flow Control Equipment  
Crane 300,000 17,223,000 0.8%
 
Industrial Machinery Manufacturing  
Regal-Beloit 300,000 19,110,000 0.9%
 
Measurement Instruments  
Agilent Technologies 900,000 41,976,000 2.1%
Trimble Navigation1 1,700,000 42,925,000 2.1%
84,901,000 4.2%
 
Metalworking Machinery Manufacturing  
Lincoln Electric 500,000 31,265,000 1.5%
 
Post & Courier Services  
United Parcel Service 500,000 42,790,000 2.1%
 
Rail Freight Transportation  
Norfolk Southern 500,000 36,080,000 1.8%
Union Pacific 276,327 42,427,248 2.1%
78,507,248 3.9%
300,109,248 14.7%
 
Materials  
Agricultural Chemicals  
Potash Corp of Saskatchewan 900,000 26,676,000 1.3%
 
Base Metals  
Anglo American ADR 1,227,100 13,971,761 0.7%
40,647,761 2.0%
 
Technology  
Application Software  
Adobe Systems1 1,300,000 59,475,000 2.9%
Intuit 814,000 51,713,420 2.5%
SAP ADS 600,000 44,292,000 2.2%
155,480,420 7.6%
 
Communications Equipment  
Apple 150,000 73,082,400 3.6%
Cisco Systems 2,000,000 46,620,000 2.3%
F5 Networks1 100,000 8,338,000 0.4%
Harris 700,000 39,641,000 1.9%
167,681,400 8.2%
 
Information Services  
Gartner1 300,000 17,391,000 0.8%
 
Infrastructure Software  
Oracle 1,400,000 44,604,000 2.2%
 
IT Services  
Convergys 730,000 12,869,900 0.6%
Infosys ADS 600,000 27,822,000 1.4%
International Business Machines 250,000 45,567,500 2.2%
86,259,400 4.2%
 
Printing & Imaging  
Canon ADS 315,000 9,418,500 0.5%
 
Semiconductor Capital Equipment  
ASML 462,000 40,221,720 2.0%
Taiwan Semiconductor ADS 1,243,297 20,588,998 1.0%
60,810,718 3.0%
 
Semiconductor Devices  
Intel 1,700,000 37,366,000 1.8%
Qualcomm 800,000 53,024,000 2.6%
SanDisk 370,000 20,416,600 1.0%
Xilinx 600,000 26,052,000 1.3%
136,858,600 6.7%
678,504,038 33.2%
 
Total Investments (Cost = $1,269,016,038) 2,020,057,579 98.8%
Other assets (net of liabilities) 25,576,610 1.2%
Total net assets   $2,045,634,189 100.0%
1Non-Income producing security
 
ADS: American Depositary Share
ADR: American Depositary Receipt


Amana Mutual Funds Trust, Developing World Fund
 
Common Stocks Number of Shares Market Value Country1 Percentage of Assets
Communications  
Internet Media  
Baidu ADS2 5,000 $677,650 China3 2.7%
   
Telecom Carriers  
Advanced Info Service 30,000 222,667 Thailand 0.9%
Axiata Group 195,000 399,562 Malaysia 1.6%
Millicom International 2,500 202,289 Luxembourg 0.8%
MTN Group 16,000 293,414 South Africa 1.2%
Telefonica Brasil ADS 15,000 295,950 Brazil 1.2%
Telekomunikasi Indonesia ADS 15,000 555,900 Indonesia 2.2%
Telenor 28,000 580,132 Malaysia3 2.3%
Turk Telekomunikasyon 100,000 302,899 Turkey 1.2%
2,852,813   11.4%
3,530,463 14.1%
   
Consumer Discretionary  
Apparel, Footwear, Accessory Design  
VF 3,000 561,630 United States 2.2%
   
Automobile OEM  
Ford Otomotiv Sanayi 40,000 495,432 Turkey 2.0%
   
Department Stores  
Robinson Department Store 175,000 248,576 Thailand 1.0%
   
E-Commerce Discretionary  
MercadoLibre 7,000 830,830 Brazil3 3.3%
   
Passenger Transportation  
Garuda Indonesia Persero2 2,000,000 87,772 Indonesia 0.4%
2,224,240 8.9%
   
Consumer Staples  
Food Manufacturing  
Danone ADS 37,000 554,260 France 2.2%
IOI 300,000 492,949 Malaysia 2.0%
M. Dias Branco 13,000 488,300 Brazil 1.9%
Mead Johnson Nutrition 6,000 450,180 United States 1.8%
Tiger Brands 6,000 165,669 South Africa 0.7%
2,151,358 8.6%
   
Household Products Manufacturing  
Colgate-Palmolive 8,000 462,160 United States 1.9%
Unilever ADS 12,500 477,250 United Kingdom 1.9%
939,410 3.8%
   
Pharmacies & Drug Stores  
Clicks Group 60,000 320,835 South Africa 1.3%
3,411,603 13.7%
   
Energy  
Exploration & Production  
CNOOC ADS 2,500 501,250 China 2.0%
   
Integrated Oils  
China Petroleum & Chemical ADS 1,040 74,859 China 0.3%
Petroleo Brasileiro ADS 25,000 338,000 Brazil 1.4%
Sasol ADS 6,500 304,265 South Africa 1.2%
717,124   2.9%
1,218,374 4.9%
   
Financials  
Islamic Banking  
BIMB Holdings 100,000 131,337 Malaysia 0.5%
131,337 0.5%
   
Health Care  
Cardiovascular Devices  
Mindray Medical International ADS 13,000 505,700 China3 2.0%
   
Generic Pharmaceuticals  
Aspen Pharmacare 25,000 575,785 South Africa 2.3%
Dr. Reddy's Laboratories ADS 15,000 499,050 India 2.0%
Richter Gedeon 20,000 319,764 Hungary 1.3%
1,394,599 5.6%
   
Health Care Facilities  
Bangkok Dusit Medical Services 125,000 498,734 Thailand 2.0%
IHH Healthcare2 200,000 243,887 Malaysia 1.0%
KPJ Healthcare 220,000 430,318 Malaysia 1.7%
1,172,939 4.7%
   
Specialty Pharmaceuticals  
Genomma Lab Internacional2 220,000 476,686 Mexico 1.9%
Kalbe Farma 3,500,000 430,972 Indonesia 1.8%
907,658   3.7%
3,980,896 16.0%
   
Industrials  
Infrastructure Construction  
Companhia de Concessoes Rodoviarias 32,000 230,818 Brazil 0.9%
Jasa Marga 700,000 348,381 Indonesia 1.4%
579,199 2.3%
   
Materials  
Agricultural Chemicals  
Quimica y Minera de Chile ADS 17,000 440,470 Chile 1.8%
   
Base Metals  
Freeport-McMoRan Copper & Gold 15,000 453,300 Indonesia3 1.8%
Southern Copper 11,000 302,500 Peru3 1.2%
755,800 3.0%
   
Cement & Aggregates  
PT Semen 350,000 402,979 Indonesia 1.6%
   
Precious Metal Mining  
Alamos Gold 32,500 530,403 Mexico3 2.1%
Gold Fields ADS 25,000 128,750 South Africa 0.5%
Impala Platinum ADR 16,000 178,400 South Africa 0.7%
837,553 3.3%
   
Raw Material Suppliers  
Vale ADS 12,500 180,125 Brazil 0.7%
   
Steel Producers  
Tenaris ADS 7,000 309,540 Argentina3 1.3%
2,926,467 11.7%
   
Technology  
Application Software  
AutoNavi Holdings ADS2 25,000 281,500 China 1.1%
   
Computer Storage  
Western Digital 9,000 558,000 China 2.3%
839,500 3.4%
   
Utilities  
Electric & Gas Marketing & Trading  
PGE 60,000 314,885 Poland 1.3%
   
Power Generation  
Aboitiz Power 450,000 327,438 Phillippines 1.3%
   
Utility Networks  
Enersis ADS 10,000 158,000 Chile 0.6%
Hong Kong & China Gas ADS 200,000 466,000 China 1.9%
Manila Electric 30,000 174,478 Phillippines 0.7%
Petronas Gas 40,000 244,975 Malaysia 1.0%
1,043,453   4.2%
1,685,776 6.8%
   
Total Investments (Cost = $20,051,548) 20,527,855   82.3%
Other assets (net of liabiliities) 4,415,566   17.7%
Total assets   $24,943,421   100.0%
1Country of domicile unless otherwise indicated
2Non-Income producing security
3Denotes a country or region of primary expsosure
 
ADS: American Depositary Share
ADR: American Depositary Receipt


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.

Fair Value Measurements Disclosure:

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 in 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 market place, 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 judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

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 following is a summary of the inputs used as of August 30, 2013 in valuing the Funds' investments carried at value:

Funds Total Level 1 Quoted Price Level 2 Significant Observable Input Level 3 Significant Unobservable Input
 
Income Fund
Common Stocks $1,382,271,828 $1,382,271,828 $ – $ –
Halal Income $5,203,780 $ – $5,203,780 $ –
Total Assets $1,387,475,608 $1,382,271,828 $5,203,780 $ –
 
Growth Fund
Common Stocks $2,020,057,579 $2,020,057,579 $ – $ –
Total Assets $2,020,057,579 $2,020,057,579 $ – $ –
 
Developing World Fund
Common Stocks $20,527,855 $10,545,519 $9,982,336 $ –
Total Assets $20,527,855 $10,545,519 $9,982,336 $ –

(1) During the period ended August 30, 2013, no Fund had transfers between Level 1 and Level 2.

Federal Income Taxes: The cost basis of investments for federal income tax purposes at August 30, 2013 was as follows:

  Income Fund Growth Fund Developing World Fund
Cost of investments $924,049,525 $1,269,016,038 $20,051,548
Gross unrealized appreciation 475,337,878 786,769,151 2,674,320
Gross unrealized depreciation (11,911,795) (35,727,610) (2,198,013)
Net unrealized appreciation $463,426,083 $751,041,541 $476,307
       

Other:
For more information please see the Funds' most recent prospectus, summary prospectus, statement of additional information, and annual report on the Funds' website at www.amanafunds.com.

Investments in the Funds are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Before investing in any Amana Mutual Fund, you should carefully consider the Fund's investment objectives, risks, fees and expenses. To obtain this and other important information about the Amana Funds in a prospectus or summary prospectus, visit www.amanafunds.com or call 888-732-6262. Please read the prospectus and summary prospectus carefully before investing.

Item 2. Controls and Procedures

(a) An evaluation was performed within 90 days of the filing of this report, under the supervision of and with the participation of the registrant's management, including the principal executive officer and the principal financial officer, regarding the effectiveness of the design and operation of the registrant's disclosure controls and procedures. Based on that evaluation, the principal executive officer and principal financial officer concluded that the registant's disclosure controls and procedures were effective.

(b) The registant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occured during the registant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registant's internal control over financial reporting.

Item 3. Exhibits

Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99CERT.

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
Nicholas Kaiser, President

Date: October 28, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Nicholas Kaiser
Nicholas Kaiser, President

Date: October 28, 2013


By:

/s/ Christopher Fankhauser
Christopher Fankhauser, Treasurer

Date: October 28, 2013