Sept. 7, 2011
Saturna Capital Corporation
, a U.S. investment management company and adviser to nine mutual funds is celebrating the 25th anniversary of its first client, Amana Income Fund. Since its inception in 1986, Saturna's flagship
Amana Income Fund
has grown to
and is now the second largest public equity mutual fund in the world managed according to the
principles of Islamic finance
. Its sibling fund,
, is the largest such fund at
Amana Income's 25-year run is rare in the U.S. mutual fund industry. Out of the roughly 7500 mutual funds currently in operation, only about 300, or 4%, have been around as long as Amana Income. Research shows that the closure rate for U.S. mutual funds throughout the 1990s was around 36%, rising to 56% in the 2000s. Funds that fail to attract investors, often due to poor relative performance or distribution strategies, are regularly merged or liquidated by their managers.
Saturna's conservative, value-oriented management style developed and refined by portfolio manager
during his 41 year investment career meshes well with Amana's rigorous Islamic mandates. As a result of the funds' award-winning long-term performance and
top-ratings from U.S. fund rating agencies Morningstar and Lipper
, the Amana funds found appeal outside of the Muslim community and now have more than 100,000 investors throughout
the United States
"We've spent the past 25 years developing and refining our
security screening process
to select high-quality, value-oriented stocks that adhere to the principles of Islamic finance," Kaiser explains. "What this means for our shareowners is that we heavily scrutinize the operations of the companies we invest in, and we know their balance sheets and the sources of their revenue."
He added, "Amana's Islamic mandates impose a high level of discipline on our investment process. Our shareowners – many of whom are non-Muslim – know and appreciate this. It's a very systematic and deliberate process, to ensure that each one of our investments not only meets or exceeds multiple criteria, but continues to do so throughout its holding period."