4 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#147 in Large Growth
U.S. News evaluated 473 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 7.31 percent over the past year, 8.18 percent over the past three years, 5.40 percent over the past five years, and 12.16 percent over the past decade.
|Trailing Returns||Updated 04.30.2013|
|Year to date||6.9%|
|3 Years (Annualized)||8.2%|
|5 Years (Annualized)||5.4%|
|10 Years (Annualized)||12.2%|
Amana Trust Growth 's focus may be narrow, but its appeal is broad.
As of May 03, 2013, the fund has assets totaling almost $2.20 billion invested in 70 different holdings. Its portfolio consists of domestic and international stocks.
Amana Trust Growth is a socially responsible large-cap growth fund that invests according to Islamic principles. As a result, it avoids companies in the liquor, pornography, gambling, and banking industries. In 2008, these restrictions came in handy. Specifically, by staying away from financial stocks, the fund emerged comparatively unscathed when the sector imploded. During the downturn, the fund also benefitted strongly from its avoidance of highly leveraged companies. In 2009, though, the fund stalled a bit as the risky picks it tends to pass over came roaring back. But even with a slow 2009 and a middling 2010, the fund's trailing three-year returns landed it, as of the end of the first quarter, in the top 15 percent of Morningstar's large growth category. In other words, while Amana Trust Growth was designed for a niche set of customers, its record suggests that Islamic investors aren't the only ones who should consider owning it. The fund has returned 7.31 percent over the past year and 8.18 percent over the past three years.
The fund's basic philosophy is simple: "Be sure you know your business, and invest for the long term," says co-manager Nicholas Kaiser. Over time, this has translated into a strong buy-and-hold discipline. Notably, the fund's turnover ratio (a measure of how much trading management does) is just 5 percent. By comparison, a fund that replenishes its entire portfolio each year would have a ratio of 100 percent. This long-term approach corresponds with the fund's distaste for risk taking and speculation, and management's patience has rewarded investors handsomely. The fund has returned 5.40 percent over the past five years and 12.16 percent over the past decade.
The fund screens out companies in the liquor, pornography, gambling, and banking industries. It also avoids companies that take on a lot of debt. Management has a strong buy-and-hold discipline, as evidenced by the fund's rock-bottom turnover ratio. Despite the word "growth" in the fund's name (and its classification by Morningstar as a large growth fund), management keeps a keen eye on valuations. "The Fund diversifies its investments across industries and companies, and generally follows a value investment style. The Fund favors companies expected to grow earnings and stock prices faster than the economy," according to its prospectus.
Role in Portfolio
Morningstar calls this fund a "core holding."
The fund is advised by Saturna Capital. Nicholas Kaiser has managed the fund since its inception. Monem Salam has been a co-manager since 2008.
Amana Trust Growth has an expense ratio of 1.13 percent.
Like all stock funds, this one comes with some risks. One of the more notable ones is the chance that the fund's restrictions could cause it to lag when there is a rally in any of the sectors of the market in which it is not allowed to invest.