Amana Mutual Funds Trust Investment Analysis and Performance

Amana Mutual Funds Trust offers a range of investment options that are designed to meet the needs of socially responsible investors.

With a focus on Islamic principles, Amana's funds aim to provide competitive returns while also adhering to strict ethical guidelines.

Amana's investment approach is built on the concept of "maqasid al-shariah", which emphasizes the importance of protecting human life, dignity, and well-being.

The trust's funds are managed by experienced professionals who work to identify investment opportunities that align with these principles.

Amana's investment portfolio is comprised of a diverse range of assets, including stocks, bonds, and cash equivalents.

The trust's funds have consistently demonstrated strong performance, with many outperforming their benchmarks over the long term.

Amana Mutual Funds Trust's performance metrics are a great way to gauge their investment success.

The trust's average annual returns for the past 10 years are around 8.5%, which is a respectable figure considering the market's fluctuations.

In terms of expense ratios, Amana Mutual Funds Trust has an average expense ratio of 0.55%, which is lower than many other mutual funds.

The performance chart is a crucial tool for investors to visualize the growth of their investments over time. It's like looking at a snapshot of your investment's journey, comparing it to a benchmark like the S&P 500 index.

The chart in the Amana Mutual Funds Trust Growth Fund example shows the growth of an initial investment of $10,000. This gives you a clear picture of how your investment has performed over time.

You can see that the fund's performance is compared to the S&P 500 index, which is a widely recognized benchmark for the stock market. This comparison helps you understand how your investment is doing relative to the overall market.

The chart also takes into account splits and dividends, which are important factors to consider when evaluating investment performance.

Here's a breakdown of the key metrics you can expect to see in a performance chart:

By reviewing the performance chart and understanding the key metrics involved, you can make more informed decisions about your investments and adjust your strategy as needed.

The Sharpe ratio is a key performance metric that helps investors evaluate an investment's historical performance in terms of risk-adjusted returns. It's calculated based on past trading data, including price changes and dividends.

A Sharpe ratio of 0.34 is currently reported for the Amana Mutual Funds Trust Growth Fund, which is a relatively low value. This suggests that the fund has not generated particularly high returns relative to its level of risk.

The Sharpe ratio is often used to compare an investment's performance to a benchmark, such as the S&P 500 index. By using this metric, investors can get a better sense of whether the fund is a good fit for their investment goals and risk tolerance.

For the Amana Mutual Funds Trust Growth Fund, the Sharpe ratio is calculated based on the past 1 year of trading data. This is a relatively short-term perspective, and investors may want to consider longer-term data to get a more comprehensive picture of the fund's performance.

Amana Mutual Funds Trust offers a range of investment options with a focus on social responsibility. The trust has 25 different mutual funds to choose from.

The Amana Trust was established in 1982 and is a registered investment company with the Securities and Exchange Commission.

A fund's net asset value (NAV) is the total value of its assets minus its liabilities, and it's typically calculated daily.

The NAV is used to determine the fund's share price, which can fluctuate based on market conditions.

Funds can be broadly classified into two categories: open-end funds and closed-end funds.

Open-end funds allow investors to buy and sell shares directly with the fund, while closed-end funds issue a fixed number of shares and trade on an exchange.

Mutual funds are a type of open-end fund that pools money from many investors to invest in a variety of assets.

They often come with management fees, which can range from 0.05% to 2.0% of the fund's assets.

The Amana Funds are a unique group of investments that cater specifically to the needs of Muslim investors. They were founded in 1986 by Unified Management Corporation in Indianapolis, IN.

The first fund, the Amana Income Fund, was created in 1986, followed by the Amana Growth Fund in 1994, and the Amana Developing World Fund in 2009. All three funds are managed according to Islamic principles.

The Amana Funds are known for their strict adherence to Islamic principles, which prohibit investments in companies that produce or sell alcohol, tobacco, or pornography, process or sell pork products, generate revenue from gambling or interest, or maintain a debt ratio of greater than one-third of assets.

The funds were created with the value investment style in mind and have been managed by Nicholas Kaiser since 1990. Scott Klimo serves as the deputy portfolio manager.

The Amana Funds are unique in that they were specifically designed to meet the needs of Muslim investors, who are motivated to save and invest in order to make financial preparations necessary for the Hajj, a sacred pilgrimage considered one of life's primary duties in Islam.

Here are the key funds and their creation dates:

The Amana Funds have a dedicated Board of Trustees and Officers, including Talat M. Othman, Chairman since 2001, and Nicholas F. Kaiser, CFA, Trustee since 1989.

Saturna Capital Corporation is the investment adviser and administrator of the Amana Mutual Funds Trust and the Saturna Investment Trust.

Established in 1989, Saturna Capital Corporation has a long history of managing assets.

As of September 2012, Saturna Capital Corporation was administering $3.8 billion in assets under management.

Saturna Sdn. Bhd. is a wholly owned subsidiary of Saturna Capital Corporation, located in Kuala Lumpur, Malaysia.

Saturna Brokerage Services is the distributor of the Amana Funds Trust and is also a wholly owned subsidiary of Saturna Capital Corporation.

Morningstar's analysis of Amana Mutual Funds Trust AMAGX is based on a fundamental assessment of three pillars: Process, People, and Parent.

The Process Pillar evaluates how sensible, clearly defined, and repeatable AMAGX's performance objective and investment process is for both security selection and portfolio construction. This is a crucial aspect of investment management, as it ensures that the fund's strategy is well-defined and can be consistently executed.

The People Pillar assesses the management team's experience and ability, which is a key factor in determining the fund's potential for success. High-quality management teams with a proven track record tend to deliver superior performance relative to their benchmarks and peers.

To help you make an informed decision, here's a brief overview of the three pillars that Morningstar considers when evaluating AMAGX:

Risk-Adjusted Performance Indicators are essential tools for investors to measure the success of their investments. They take into account the level of risk involved in each investment.

A Sharpe Ratio of 2 means that an investment has generated twice the return of the risk-free rate for a given level of volatility. This indicates a high level of risk-adjusted performance.

The Sortino Ratio is another risk-adjusted performance indicator that focuses on downside risk. A Sortino Ratio of 1.5 suggests that an investment has generated 50% more return than the risk-free rate while minimizing losses.

The Calmar Ratio measures the ratio of an investment's compound average return to its maximum drawdown. A Calmar Ratio of 2 indicates that an investment has generated twice the average return for a given level of risk.

Investors can use these risk-adjusted performance indicators to compare the performance of different investments and make more informed decisions.

Morningstar's analysis of AMANX is based on a fundamental assessment of several pillars.

Their rating is derived from an evaluation of these pillars.

You can unlock the full analysis with Morningstar Investor.

This comprehensive review provides a detailed breakdown of the investment's performance and potential.

Amana Mutual Funds Trust has a history of providing returns to its investors. The Growth Fund had a return of 2.01% year-to-date (YTD) and 6.19% in the last 12 months.

The fund's performance is also compared to the S&P 500, which had an annualized return of 11.29% over the past 10 years. This indicates that the Amana Mutual Funds Trust Growth Fund did not perform as well as the benchmark.

The table below presents the monthly returns of AMAGX, with color gradation from worst to best to easily spot seasonal factors. The returns are adjusted for dividends.

The Amana Mutual Funds Trust Growth Fund has had a return of 2.01% year-to-date (YTD) and 6.19% in the last 12 months.

The fund's annualized return over the past 10 years was 8.98%, which is lower than the S&P 500's annualized return of 11.29%.

The fund's return in 2023 was 25.04%, which is significantly higher than its return in 2022, which was -22.08%.

Here's a breakdown of the fund's returns over the past few years:

As you can see, the fund's returns have been quite volatile over the past few years, with some years seeing significant gains and others seeing significant losses.

The Amana Mutual Funds Trust Growth Fund has a relatively low dividend yield, with a 0.00% dividend yield over the last twelve months. This means that investors are not receiving any dividend payments from the fund.

The fund's dividend history is quite consistent, with only a few instances of dividend payments. In 2019 and 2018, the fund paid out $0.16 per share, while in 2017, it paid out $0.17 per share.

Here's a breakdown of the fund's dividend payments over the years:

As you can see, the fund's dividend payments have ranged from $0.13 to $0.22 per share over the years. It's worth noting that the fund has not paid out any dividends in recent years, with the last dividend payment being $0.00 per share in 2024.

Amana Mutual Funds Trust has a relatively stable track record when it comes to volatility.

The current Amana Mutual Funds Trust Growth Fund volatility is 4.73%, representing the average percentage change in the investments's value, either up or down over the past month.

This level of volatility is likely manageable for many investors, allowing them to balance risk with potential returns.

Volatility can be a major concern for investors, and it's essential to understand how to measure it. The Amana Mutual Funds Trust Growth Fund has a current volatility of 4.73%, which is the average percentage change in its value over the past month.

This level of volatility can be unsettling, especially for those who are new to investing. The chart below shows the rolling one-month volatility, giving us a clear picture of the fund's performance.

Looking at the chart, you can see the fluctuations in the fund's value over time. The chart is a useful tool for understanding the fund's volatility and making informed investment decisions.

Risk and volatility are two sides of the same coin when it comes to investing. A high-risk investment might offer higher potential returns, but it also means you could lose a significant chunk of your money.

The worst drawdowns are a key indicator of risk. The Amana Mutual Funds Trust Growth Fund has experienced some significant drawdowns over the years. The maximum drawdown was 57.64%, occurring on October 9, 2002.

This was a particularly rough time for investors, with the recovery taking a whopping 816 trading sessions. To put that into perspective, if you invested $10,000 in the fund at the peak, you would have lost over $5,700.

Here are some of the worst drawdowns the fund has experienced:

Each of these drawdowns was significant, but the recovery times varied. The longest recovery took 1449 days, while the shortest took only 82 days.

Fees and Charges are an important consideration when investing in mutual funds. The expense ratio for AMAGX is 0.91%, falling within the medium range.

The total expense ratio for AMAGX is 0.8551%. This includes various fees and charges that are broken down into different categories.

The advisor fee expense is a significant portion of the total expense, accounting for 0.5824% of the total expense ratio. This is a substantial cost that investors should be aware of.

The distribution fee expense is also a notable component, making up 0.2508% of the total expense ratio. This fee is likely related to the distribution of fund assets to investors.

Other fees and charges include custodian fees, auditor fees, and board of directors fees, which together account for a small percentage of the total expense ratio.

Here's a breakdown of the total expense ratio:

These fees and charges can add up over time, so it's essential for investors to understand what they're paying for and how it affects their investment returns.

Amana Mutual Funds Trust has seen a significant change in its performance over the past decade, with a downgrade of its Process rating from Above Average to Average.

This change in rating is a result of the fund's poor performance over the past decade, which has lowered our confidence in its process.

The fund still maintains an Average rating in terms of its People, which suggests that the team managing the fund is still doing a decent job.

A decade of poor performance is a long time, and it's likely that this has had a significant impact on the fund's overall performance and reputation.