(PUB) Investing 2016

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Data through March 31, 2016 FINRA members: For internal or institutional use only.
Amana Income Investor Ticker
AMANX
Yield
1.4%
Total Assets
$1,284 mil
Mstar Category
Large Blend
Benchmark 1: Russell 1000 TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 03-30-16
´
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price § Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Low
QQQQ
Above Avg
4 4 4 4 4 4 4 4 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& & & * ( & ) ( ) ( & Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 03-16 History
27.73 30.98 23.51 28.69 31.78 31.75 34.24 43.77 46.64 42.40 44.15 NAV
21.20 14.12 -23.48 23.54 12.21 1.94 9.65 29.72 9.13 -2.86 4.13 Total Return %
5.74 8.35 14.12 -4.90 -3.89 0.44 -6.78 -3.39 -4.11 -3.78 2.95 +/- Bmark 1
5.41 8.63 13.52 -2.93 -2.85 -0.17 -6.36 -2.67 -4.56 -4.25 2.78 +/- Bmark 2
0.83 0.73 0.69 1.38 1.34 1.56 1.71 1.78 1.60 1.43 0.00 Income Return %
20.37 13.39 -24.17 22.16 10.87 0.38 7.94 27.94 7.53 -4.29 4.13 Capital Return %
13 1 2 49 68 19 93 74 76 73 5 Total Rtn % Rank Cat
0.19 0.20 0.21 0.32 0.38 0.49 0.54 0.61 0.70 0.66 0.00 Income $
0.38 0.46 0.01 0.00 0.00 0.17 0.01 0.00 0.41 2.25 0.00 Capital Gains $
1.50 1.38 1.33 1.33 1.26 1.21 1.20 1.19 1.15 1.13 . Expense Ratio %
1.34 0.95 0.71 1.39 1.33 1.47 1.52 1.58 1.71 1.26 . Income Ratio %
10 14 2 6 5 3 3 1 1 0 . Turnover Rate %
121 350 541 1,039 1,254 1,314 1,279 1,559 1,474 1,048 1,055 Net Assets $mil
Performance 03-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 6.24 -3.10 4.53 1.89 9.65
2013 10.46 1.70 5.89 9.06 29.72
2014 1.28 4.64 -1.48 4.52 9.13
2015 -0.19 -0.58 -7.87 6.26 -2.86
2016 4.13 — — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 4.13 2.96 2.78 5 10,413
6 Mo 10.64 2.89 2.16 4 11,064
1 Yr 1.34 0.84 -0.44 20 10,134
3 Yr Avg 9.04 -2.48 -2.79 69 12,963
5 Yr Avg 8.89 -2.46 -2.69 69 15,305
10 Yr Avg 7.95 0.89 0.94 5 21,485
15 Yr Avg 8.34 2.06 1.96 3 33,267
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 8.15 46 0.82 27
5 Yr (estimated) 8.23 54 0.60 23
10 Yr (estimated) 7.44 2 0.47 16
Potential Capital Gain Exposure: 57% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 1.34
3 Yr 9.04 Avg -Avg QQQ
5 Yr 8.89 Avg Low QQQ
10 Yr 7.95 High Low QQQQQ
Incept 8.55
Other Measures Standard Index Best Fit Index
Alpha -2.1 -2.1
Beta 0.96 0.96
R-Squared 93 93
Standard Deviation 11.27
Mean 9.04
Sharpe Ratio 0.82
Portfolio Analysis 02-29-16
Total Stocks: 45
Share change since 01-31-16 Sector YTD Ret % % Assets
Illinois Tool Works Inc Industrl — 3.91
Nike Inc B Cnsmr Cyc — 3.88
Eli Lilly and Co Hlth Care — 3.70
3M Co Industrl — 3.38
Honeywell International I Industrl — 3.36
Bristol-Myers Squibb Comp Hlth Care — 3.34
Colgate-Palmolive Co Cnsmr Def — 3.27
Kimberly-Clark Corp Cnsmr Def — 3.24
PPG Industries Inc Basic Mat — 3.20
YMicrosoft Corp Technology — 3.16
Genuine Parts Co Cnsmr Cyc — 2.99
General Mills Inc Cnsmr Def — 2.93
Pfizer Inc Hlth Care — 2.83
Rockwell Automation Inc Industrl — 2.81
Novartis AG ADR Hlth Care — 2.65
Canadian National Railway Industrl — 2.56
E.I. du Pont de Nemours & Basic Mat — 2.52
Air Products & Chemicals Basic Mat — 2.47
Carlisle Companies Inc Cnsmr Cyc — 2.47
YJM Smucker Co Cnsmr Def — 2.43
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 42.7
Large 35.1
Mid 22.2
Small 0.0
Micro 0.0
Avg $mil:
47,455
Value Measures Rel Category
Price/Earnings 18.69 1.14
Price/Book 4.41 1.90
Price/Sales 2.10 1.38
Price/Cash Flow 13.37 1.48
Dividend Yield % 2.76 1.15
Growth Measures % Rel Category
Long-Term Erngs 9.76 0.99
Book Value -1.28 -0.29
Sales -0.37 -0.13
Cash Flow 1.62 0.32
Historical Erngs 1.58 0.24
Profitability %
Return on Equity 28.33
Return on Assets 9.25
Net Margin 12.69
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 22.99 0.71
r BasicMat 11.94 3.99
t CnsmrCyc 11.05 0.91
y FinanSvcs 0.00 0.00
u Real Est 0.00 0.00
j Sensitive 38.00 0.94
i CommSrvs 0.00 0.00
o Energy 2.06 0.32
p Industrl 27.02 2.33
a Technlgy 8.92 0.49
k Defensive 39.00 1.44
s CnsmrDef 18.71 1.94
d Hlthcare 20.29 1.44
f Utilities 0.00 0.00
Composition - Net
Cash 1.8
Stocks 98.2
Bonds 0.0
Other 0.0
Foreign 10.6
(% of Stock)
Morningstar's Take by David Kathman, CFA 03-30-16
Amana Income has been managed since its 1989
inception by Nick Kaiser, who has put together an
outstanding long-term record here and at Amana Growth
AMAGX (launched in 1994). While Kaiser doesn’t have
any immediate plans to retire, the length of his tenure
means that succession planning has become a valid
concern. Such concerns, along with the fund’s middling
recent performance and still-high expenses, have led us
to downgrade its Morningstar Analyst Rating from Silver
to Bronze.
Advisor Saturna Capital has moved over the past few
years toaddress thesuccession issue. In2012, theyhired
Scott Klimo as director of research and deputy portfolio
manager on the Amana funds, and Klimo’s status as heir
apparent to Kaiser has now been cemented by his
promotion to chief investment officer in 2016. Kaiser is
moving to the bigger-picture role of global strategist,
while continuing as lead manager of this fund and Amana
Growth. Meanwhile Paul Meeks, who was hired at the
same time as Klimo as a technology analyst and portfolio
manager, has left the firm, which is in the process of
replacing him as part of a broader attempt to beef up the
staff of investment professionals.
This fund holds only dividend-paying stocks, and like
Amana Growth, it’s required to invest in accordance with
Islamic law, meaning it can’t hold stocks that get more
than 5% of their sales from alcohol, tobacco, gambling,
pornography, pork, or other prohibited things. It also can’t
hold financial stocks, or those with too much leverage,
due to the Islamic prohibition on paying or receiving
interest. Turnover is very low, partly due to Kaiser’s long-
term perspective, but also because excessive trading is
considered akin to gambling.
This patient, fundamentally driven strategy has good
things to offer lots of investors, and has led to excellent
long-term results, especially in down markets such as
2008, with extremely low volatility. On the other hand, it
tends to underperform its large-growth Morningstar
Categorypeers inbullmarketsdrivenby risky,speculative
fare, which is why it lagged from 2009 through 2015.
Address: Amana Mutual Funds Trust Minimum Purchase: $250 Add: $25 IRA: $100
Bellingham, WA 98225 Min Auto Inv Plan: — Add: —
888-732-6262 Sales Fees: No-load
Web Address: Management Fee: 0.95% mx./0.65% mn.
Inception: 06-23-86 Actual Fees: Mgt:0.83% Dist:0.25%
Advisor: Saturna Capital Corp (Washington) Expense Projections: 3Yr:$359 5Yr:$622 10Yr:$1375
Subadvisor: None Income Distribution: Semi-Annually
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