Amana Trust Income (AMANX)
As of March 5, 2010
Since it invests according to Islamic principles, this fund stays away from companies in the liquor, pornography, gambling, and banking industries. In 2008, these restrictions came in handy. Specifically, by avoiding financial stocks, the fund emerged comparatively unscathed when the sector imploded. Still, an aversion to financial companies is hardly the only reason for this fund’s long-term success. “It’s true that the fact that they aren’t allowed to own financials did help them in 2008,” Morningstar analyst David Kathman said of this fund and its sibling, Amana Trust Growth. “But they also did fantastically well back in the middle of the decade when financials were on fire.”
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