Amana Income Fund

Amana Income Fund: Objectives, Strategies & Risks

Investment Objective

Current income and preservation of capital.

Principal Investment Strategies

The Income Fund invests only in common stocks, including foreign stocks. Investment decisions are made in accordance with Islamic principles. The Fund diversifies its investments across industries and companies, and generally follows a value investment style. The Fund purchases only dividend-paying companies, which are expected to have more stable stock prices and tend to be larger companies.

Principal Risks of Investing

The value of Income Fund shares rises and falls as the value of the stocks in which the Fund invests goes up and down. Only consider investing in the Fund if you are willing to accept the risk that you may lose money. Fund share prices, yields, and total returns will change with the fluctuations in the securities markets as well as the fortunes of the industries and companies in which the Fund invests.

The Income Fund’s restricted ability to invest in certain market sectors, such as financial companies and fixed-income securities, limits opportunities and may increase the risk of loss during economic downturns. Because Islamic principles preclude the use of interest-paying instruments, the Fund does not maximize current income because reserves remain in cash.

The Income Fund may invest in securities that are not traded in the United States when market conditions or investment opportunities arise that, in the adviser‘s judgment, warrant such investment. Investments in the securities of foreign issuers may involve risks in addition to those normally associated with investments in the securities of U.S. issuers. All foreign investments are subject to risks of: (1) foreign political and economic instability; (2) adverse movements in foreign exchange rates; (3) currency devaluation; (4) the imposition or tightening of exchange controls or other limitations on repatriation of foreign capital; and (5) changes in foreign governmental attitudes towards private investment, including potential nationalization, increased taxation or confiscation of assets.

Portfolio Managers

Portfolio Manager since 1994: Nicholas Kaiser CFA This link opens a new window

Deputy Portfolio Manager since 2012: Scott Klimo CFA This link opens a new window