Amana Mutual Funds Trust

Minimum Investment:

$250

Sales Charge:

No-load

Fund Managers:

Nicholas Kaiser, president of Saturna Capital, is the manager for the Amana Growth Fund and the Amana Income Fund.

Background:

The Amana Mutual Funds Trust began in 1986 with the Amana Income Fund, when a group of Islamic scholars approached Nicholas Kaiser, founder of Saturna Capital in Bellingham, WA, about starting a fund.

“They were looking to create a vehicle such as a mutual fund that would allow Muslims in America to have a way to participate in stocks,” says Kaiser. “Muslims in America had a desire to own stocks and they knew there were certain restrictions or guidelines that they should follow. By hiring a mutual fund management company to create a fund to follow those restrictions they knew it would meet their religious needs to satisfy their goal of buying equities.”

In 1994 the Amana Growth Fund was created. Both funds adhere to Islamic principles and screen companies who produce alcohol, process pork, are involved in gambling, pornography or insurance. They also avoid interest-based banks or finance associations. The funds do not make any investments that pay interest, which means they do not purchase bonds, debentures, or other interest paying obligations of indebtedness.

Kaiser says the funds screens about 5,000 companies each month with about 2,400 passing the initial process.