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Previous: DREYFUS MASSACHUSETTS TAX EXEMPT BOND FUND, 497, 1996-01-19 |
Next: PACIFICARE HEALTH SYSTEMS INC, SC 13G/A, 1996-01-19 |
AMANA MUTUAL FUNDS TRUST
NOVEMBER 30, 1995 REPORT
INCOME FUND
GROWTH FUND
FELLOW SHAREOWNERS:
Where do we go from here? Our last letter was very optimistic about the
potential returns from financial assets for the remainder of the century.
Throughout 1995 we were correct and our positive outlook remains into 1996.
As shown in the following financial statements, the Amana Funds served their
shareholders well during the six months ended November 30, 1995.
AMANA INCOME FUND The Fund returned 11.1% to shareholders for the six
months, a very respectable return given its conservative investment focus on
income. The Fund returned a total of 27.5% for calendar year 1995. For the
last five calendar years, the Fund returned an average of 10.9% per year.
AMANA GROWTH FUND
The Growth Fund had a very strong gain through November 30, growing 22.4%
since May 31 and 35.0% for calendar year 1995.
THE OUTLOOK Nowhere is it written that markets must decline after a hot
year like 1995. With low inflation, one can pay well for stocks sporting
reasonable growth prospects. Indeed, we see continued slow growth and flat
interest rates.Politically, the climate is still favorable though not as bullish
as last fall:lower taxes and higher speed limits.
The debate has shifted from increasing government expenditures to whether,
where and how much to cut. Newt Gingrich now can add TIME Man of the Year to his
resume: not because they like him, but because of his influence on changing the
terms of the debate. Technological change is exploding, lowering costs and
greatly increasing productivity. Our times are driven by the information
technologies in which America excels. We should be the beneficiaries of
long-term trends from which our shareholders are well positioned to benefit.
Internationalization of busi ness both spurs and is spurred by the information
revolution.
Similarly, a successful company no longer can operate in one national
market. To take advan tage of these trends, we have sought companies that are
technological lead ers or that have a significant international exposure. Our
international tele communications company investments exemplify these trends
Growth Fund is best suited to invest with these trends because income is not a
concern. As port folio managers, we increasingly seek companies with earnings
and assets outside the United States. We invite you to review the current
portfolios of both Funds.
Additional detail and financial information is provided on the following
pages. As always, we appreciate your participation in the Amana Funds and we
welcome your comments and suggestions. If you have any questions or need help,
please call us at 800/SATURNA.
Respectfully yours,
NICHOLAS KAISER, BASSAM OSMAN,
PRESIDENT CHAIRMAN
JANUARY 8, 1996
<PAGE>
<TABLE>
<CAPTION>
INCOME FUND
INVESTMENTS
NOVEMBER 30, 1995
NUMBER MARKET
ISSUE OF SHARES COST VALUE
COMMON STOCKS (97.6%)
BUSINESS SERVICES (7.0%
<S> <C> <C> <C>
H&R Block 9,000 $328,185 $400,500
Dun & Bradstreet 6,500 331,020 405,438
-------- -------
659,205 805,938
CHEMICALS (6.3%)
ARCO Chemical 6,500 238,792 316,875
Chemed 5,000 168,378 195,000
Lawter International 20,000 189,220 217,500
-------- -------
596,390 729,375
MACHINERY (3.1%)
Manitowoc Company 12,000 276,656 351,000
MEDICAL (8.2%)
American Home Products 5,000 242,862 456,250
Bristol-Myers Squibb 6,000 261,835 481,500
-------- -------
504,697 937,750
MINING (1.5%)
RTZ Corp PLC ADS 3,000 149,420 175,500
OIL & GAS PRODUCTION (10.8%)
Atlantic Richfield 4,000 447,256 433,500
Exxon 5,000 307,279 386,875
Mobil Corporation 4,000 257,501 417,500
-------- -------
1,012,036 1,237,875
OIL & GAS - PIPELINE (2.3%)
Enron 7,000 208,560 262,500
RUBBER & PLASTICS (3.0%)
R P M, Inc 16,250 182,267 341,250
SOAP & CLEANING PREPARATIONS (3.3%)
Clorox 5,000 220,294 378,750
STEEL (2.8%)
USX Steel Group 10,000 320,213 326,250
TELECOMMUNICATIONS (21.2%)
BCE, Inc 13,000 436,370 435,500
Cable & Wireless PLC ADR 11,000 202,583 226,875
GTE Corp. 12,500 395,347 532,812
Pacific Telesis Group 14,000 375,305 420,000
Telecom Corp New Zealand ADS 7,500 358,258 502,500
Telefonica de Espana, ADR 7,500 202,956 311,250
-------- -------
1,970,819 2,428,937
UTILITIES - ELECTRIC (17.5%)
FPL Group 10,000 344,874 433,750
Idaho Power 10,000 250,658 286,250
NIPSCO Industries 5,000 184,612 185,000
New York State Electric & Gas 13,000 346,742 338,000
Pacific Gas & Electric 15,000 356,897 412,500
Washington Water Power 19,900 343,235 350,737
-------- -------
1,827,018 2,006,237
UTILITIES -WATER & GAS (10.7%)
American Water Works 10,000 295,430 321,250
Peoples Energy 14,000 380,014 427,000
Piedmont Natural Gas 20,200 286,926 474,700
-------- -------
962,370 1,222,950
TOTAL INVESTMENTS (97.6%) $8,786,834 11,204,312
Other Assets (net of liabilities) ------- 273,029
TOTAL NET ASSETS (100%) $11,477,341
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Period Jun.23
ended 1986 (in-
Nov. For Year Ended May 31 ception)
30, to
------------------------------------ -------------------------
1995 1994 1993 1992 1991 1990 1989 1988 5/31/87
---- ---- ---- ---- ---- ---- ---- ---- -------
NET ASSET VALUE AT
BEGINNING
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OF PERIOD $12.92 12.86 11.94 11.36 10.86 10.39 9.11 10.73 10.00
INCOME FROM
INVESTMENT
OPERATIONS
Net Investment
Income 0.23 0.30 0.32 0.32 0.39 0.38 0.38 0.30 0.28
Net gains or
losses on
securities
(both realized
and unrealized) 1.20 (0.36) 0.92 0.58 0.46 0.53 1.29 (1.65) 1.24
----- ------ ----- ----- ----- ----- ----- ------ ----
Total From Investment
Operations 1.43 (0.06) 1.24 0.90 0.85 0.91 1.67 (1.35) 1.52
LESS DISTRIBUTIONS
Dividends (from
net investment
income) 0.00
(0.30) (0.32) (0.32) (0.35) (0.44) (0.39) (0.27) (0.28)
Distributions 0.00 0.00 0.00 0.00 0.00 0.00 0.00
----- -------- ----- ----- ----- ----- ----- ----
(from capital (0.32) (0.51)
------ ------
gains)
Total Distributions 0.00
(0.62) (0.32) (0.32) (0.35) (0.44) (0.39) (0.27) (0.79)
NET ASSET VALUE AT END
OF PERIOD $ $ $ $ $ $ $ $
14.35 12.18 12.86 11.94 11.36 10.86 10.39 $ 10.73
9.11
TOTAL RETURN 11.07% (0.63)% 10.26% 7.88% 8.11% 8.85% 18.86% (12.68)% 15.21%
RATIOS / SUPPLEMENTAL
DATA
Net assets ($000), $ $ $ $ $ $ $ $ $
end of period 11,477 10,432 9,398 6,913 5,868 4,760 3,645 3,559 3,189
Ratio of expenses to
ave. net
assets (not 0.82% 1.58% 1.58% 1.58% 1.66% 1.76% 1.88% 2.07% 1.81%
annualized)
Ratio of net
investment income to
ave. net assets 1.71% 2.22% 2.65% 2.75% 3.73% 3.67% 3.85% 3.17% 3.53%
(not annualized)
Portfolio turnover 1% 21% 29% 19% 29% 19% 71% 66% 55%
rate
Average commission $0.044
rate paid
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
ASSETS
Investments, at value
<S> <C>
Common stocks (cost$8,889,946 11,204,313
Cash 206,930
Dividends receivable 68,895
Insurance deposit 2,529
Total Assets 11,482,666
LIABILITIES
Payable to affiliate 10,186
Other liabilities (4,861)
Total liabilities 5,325
NET ASSETS $11,477,341
FUND SHARES OUTSTANDING 799,765
ANALYSIS OF NET ASSETS
Paid in capital (unlimited shares authorized,
without par) 8,921,883
Undistributed net
investment income (loss) 142,618
Accumulated net realized gain (loss) on
investments 98,474
Unrealized net appreciation
on investments 2,314,366
---------
Net Assets applicable to $11,477,341
Fund shares outstanding =========
NET ASSET VALUE PER SHARE $14.35
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
INVESTMENT INCOME
<S> <C> <C>
Dividends $274,762
Gross investment income $274,762
EXPENSES
Investment adviser and administration fee 51,848
Professionalfees 7,891
Shareownerservicing 8,279
Miscellaneoustaxes 9,034
Printing andpostage 2,001
Filing and registration fees 7,353
Other expenses 4,446
-----
Total grossexpenses 90,852
------
Lesscredits 2,060
-----
Net expenses 88,792
------
Net investment income 185,969
-------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from
sales 134,927
Less cost of securities sold based on
identified cost 81,500
------
Realized net gain 53,427
UNREALIZED GAIN (LOSS) ON INVESTMENTS
End of period 2,314,366
Beginning of 1,397,750
---------
Increase in unrealized gain for the period
916,616
-------
Net realized and unrealized gain on
investments 970,043
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,156,012
=========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Period ended Year ended
Nov. 30, 1995 May 31, 1995
------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
<S> <C> <C>
Net investment income $185,969 $325,747
Net realized gain (loss) on investments 53,427 42,419
Net increase (decrease) in unrealized 916,616 637,606
------- -------
Net increase (decrease) in net assets 1,156,012 1,005,772
--------- ---------
DIVIDENDS TO SHAREOWNERS FROM
Net investment income - (371,430)
------ --------
Capital gains distributions - -
-------- --------
FUND SHARE TRANSACTIONS
Proceeds from sales of shares 57,845 1,844,615
Value of shares issued in reinvestment of
dividends - 368,278
-------- -------
657,845 2,212,893
Cost of shares redeemed 1,044,358) (2,571,121)
--------- ----------
Net increase (decrease) in net assets from
share transactions (386,513) (358,229)
-------- --------
Total increase (decrease) in net assets 769,500 276,113
NET ASSETS
Beginning of period 10,707,842 10,431,729
---------- ----------
End of period $11,477,341 $10,707,842
=========== ==============
(Including undistributed net investment
income of $142,618 for Nov. 30,1995 and $164,912
for Nov. 30,1994)
Shares of the Fund Sold and Redeemed
Number of shares sold 48,792.739 153,970.891
Number of shares issued in reinvestment of
dividends - 29,408.680
Number of shares redeemed (77,887.632 (210,643.075)
----------- ------------
Net Increase (Decrease) in Number of Shares
Outstanding 29,094.884 (27,263.504)
========== ===========
</TABLE>
<TABLE>
<CAPTION>
GROWTH FUND
INVESTMENTS
NOVEMBER 30, 1995
NUMBER MARKET
ISSUE OF SHARES COST VALUE
COMMON STOCKS (97.1%)
BUILDING (5.9%)
<S> <C> <C> <C>
BMC West 4,500 $74,188 55,688
Butler Manufacturing 2,500 60,890 86,250
------- ------
135,078 141,938
CHEMICALS (1.1%)
RPM, Inc. 1,300 23,763 27,300
COMPUTERS (7.1%)
Apple Computer 1,000 32,551 38,125
Compaq Computer 1,000 36,201 49,500
Hewlett-Packard 1,000 41,638 82,875
------- ------
110,390 170,500
COMPUTER SOFTWARE (12.3%)
Shiva 1,400 49,091 103,600
Informix 2,400 28,722 66,450
Intuit 1,500 56,731 126,000
------- -------
134,544 296,050
FOOD (4.4%)
Coca-Cola FEMSA S.A. ADR 2,400 57,093 49,200
ConAgra 1,400 43,487 55,650
------- ------
100,580 104,850
ELECTRIC UTILITIES (2.1%)
Enersis S.A. ADR 2,000 52,856 51,250
ELECTRONICS (11.5%)
Merix 2,500 56,372 90,625
Interpoint 2,500 20,108 30,000
FLIR 3,200 41,655 41,600
Motorola 1,200 65,542 73,500
Qualcomm 1,000 26,567 41,375
------- ------
210,244 277,100
FINANCIAL & BUSINESS SERVICES (2.3%)
Reuters Holdings PLC-ADR 1,000 43,333 56,375
HEALTHCARE (6.7%)
United Healthcare 1,800 76,457 113,175
Cardinal Health 900 33,941 48,600
------- ------
110,398 161,775
MEDICAL TECHNOLOGY (8.8%)
Amgen 1,200 32,403 59,550
Liposome 4,000 21,665 67,000
Glaxo Wellcome plc ADR 1,000 20,060 26,750
Rhone-Poulenc Rohrer 1,200 44,297 57,450
------- ------
118,425 210,750
MINING & PRECIOUS METALS (2.7%)
Cyprus Amax Minerals 1,100 33,054 30,250
RTZ Corp PLC ADS 600 30,446 35,100
------- ------
63,500 65,350
OIL & GAS PRODUCTION (5.1%)
YPF SA ADS 3,000 66,561 58,500
Noble Drilling 8,750 60,832 63,437
------- ------
127,393 121,937
PAPER & PAPER PRODUCTS (2.1%)
Aracruz Cellulose SA ADR 5,600 45,915 50,400
PHOTOGRAPHIC SUPPLIES (2.1%)
Fuji Photo Film ADR 1,000 46,837 49,500
RETAIL (2.6%)
Nordstrom 1,600 63,228 62,800
STEEL PRODUCERS (5.3%)
Nucor 1,200 64,623 59,850
Schnitzer Steel Industries 2,300 51,562 67,275
------- ------
` 116,185 127,125
TELECOMMUNICATIONS (5.9%)
Cincinnati Bell 2,400 43,614 71,700
Telefonica de Espana ADS 1,700 70,376 70,550
------- ------
113,990 142,250
TRANSPORTATION (9.1%)
Mesa Airlines 7,000 56,180 63,437
Southwest Airlines 2,100 60,348 52,500
Sea Containers Ltd. Cl A 1,500 24,076 26,063
Fritz Companies 2,000 29,732 77,500
------- ------
114,156 219,500
TOTAL INVESTMENTS (97.1%) 1,786,564 2,336,750
========= --------
Other Assets (net of liabilities) (2.9%) 69,825
----------
TOTAL NET ASSETS (100%) $2,406,575
==========
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA PER SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
Period Year 2/3/94
Ending Ending (Inception)
11/30/955/31/95 to
5/31/94
<S> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $5.04 $4.69 $5.00
INCOME FROM INVESTMENT OPERATIONS
Net investmentincome (0.02) (0.04) (0.01)
Net gains or
losses on
securities
(both realized
and unrealized) 1.15 0.39 (0.30)
----- ----- ------
Total from investment operations 1.13 0.35 (0.31)
LESS DISTRIBUTIONS
Dividends (from net investment income) 0.00 0.00 (0.01)
Distributions (from capital gins) 0.00 0.00 0.00
----- ----- ----
Total distributions 0.00 0.00 (0.01)
NET ASSET VALUE AT END OF PERIOD $6.17 $5.04 $4.69
TOTAL RETURN 22.40% 7.46% (6.20)%
RATIOS/SUPPLEMENTAL DATA
Net assets ($000), $2,407 $1,974 $952
end of period
Ratio of expenses to average net assets (notannualized) 1.46% 2.00% 0.62%
Ratio of net
investment income to
Average net assets (not annualized) (0.68)% (0.82)% (0.35)%
Portfolio turnover rate (not annualized) 9% 38% 6%
Average commission rate paid $0.059
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
ASSETS
Investments, at value
<S> <C>
Common stocks (cost $1,786,564) $2,336,750
Cash 67,540
Dividends receivable 1,909
Organization expense,unamortized 3,176
-----
Total Assets $2,409,375
LIABILITIES
Payable to affiliate: 2,075
Other liabilities 725
Total Liabilities 2,800
NET
ASSETS 2,406,575
FUND SHARES OUTSTANDING 390,163
ANALYSIS OF NET ASSETS
Paid in capital (unlimited shares authorized,
without par) 1,918,930
Undistributed net
investment income (loss) (25,402)
Accumulated net realized gain (loss) on
investments (37,138)
Unrealized net appreciation
on investments 550,186
-------
Net Assets applicable to $2,406,575
Fund shares outstanding =========
NET ASSET VALUE PER SHARE $6.17
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED NOVEMBER 30, 1995
INVESTMENT INCOME
<S> <C> <C>
Dividends $11,587
-------
Gross investment income $11,587
EXPENSES
Investmentadviser fee 10,371
Professionalfees 1,276
Shareholderservicing 5,007
Printing and postage 682
Filing and registration fees 3,162
Miscellaneous taxes 1,117
Other expenses 4,625
Total gross expenses 23,720
Less earnings credits (2,520)
Less advisory fee waived (1,880)
Net expenses 21,840
------
Net investment income (10,253)
-------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from sales 300,244
Less cost of securities sold based on
identified cost 284,749
-------
Realized net gain 15,495
------
UNREALIZED GAIN (LOSS) ON INVESTMENTS
End of period 550,186
Beginning of period 137,726
-------
Increase in unrealized gain for the period
412,460
-------
Net realized and unrealized gain on
investments 427,955
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $417,702
=========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS Period ended Year ended
Nov. 30, 1995 May 31, 1995
------------- ------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $(10,253) $(12,307)
Net realized (loss) gain on investments 15,495 (41,304)
Net increase (decrease) in unrealized
appreciation 412,460 170,599
------- -------
Net increase (decrease) in net assets 417,703 116,988
------- -------
DIVIDENDS TO SHAREOWNERS FROM
Net investment income - -
Capital gains distributions - -
------ ------
417,703 116,988
FUND SHARE TRANSACTIONS
Proceeds from sales of shares 517,687 1,440,053
Value of shares issued in reinvestment of
dividends - -
-------- ---------
Cost of shares redeemed
(503,162) (534,515)
Net increase (decrease) in net assets from
share transactions 14,525 905,538
------- -------
Total increase (decrease) in net assets 432,227 1,022,526
NET ASSETS
Beginning of period 1,974,348 951,822
---------- -------
End of period
2,406,575 1,974,348
Shares of the Fund Sold and Redeemed
Number of shares sold
90,292.541 302,223.290
Number of shares issued in reinvestment of
dividends - -
Number of shares redeemed
(91,843.186) (113,544.478)
Net Increase (Decrease) in Number of Shares
Outstanding (1,541.645) 188,678.812
</TABLE>
SUPPLEMENTARY INFORMATION
ORGANIZATION
Amana Mutual Funds Trust (the "Trust") was established under Indiana Law as a
Business Trust on July 26, 1984. The Trust is registered as a no-load, open-end
diversified series investment company under the Investment Company Act of 1940,
as amended. The Trust restricts its investments to those acceptable to Muslims
by investing in accordance with Islamic principles. Two portfolio series have
been created. The Income Fund was first authorized to sell shares of beneficial
interest to the public on June 23, 1986. The Growth Fund began operations on
February 3, 1994.
TRANSACTIONS WITH AFFILIATED PERSONS
Saturna Capital Corporation, under contracts approved by Income Fund shareowners
on December 28, 1989, and by the initial shareholder of Amana Growth Fund on
February 1,1994, provides investment advisory services and certain other
administrative and distribution services and facilities required by each Fund to
conduct its business. For such services, each Fund pays an annual fee equal to
.95% of its average daily net assets. In the event that total expenses of a Fund
in any one year (excluding interest, brokerage commissions and federal and state
taxes) exceeds 2%, Saturna Capital reimburses the Fund the amount of any such
excess. The president of Saturna Capital is a trustee and, together with his
family owns 2.5% of the Income Fund and 1.3% of the Growth Fund. North American
Islamic Trust, Inc. (owning 0.35% of the Income Fund and 4.4% of the Growth
Fund), is the religious consultant to Saturna regarding Islamic principles under
an agreement with Saturna, as adviser. From its advisory fee, Saturna pays North
American Islamic Trust, Inc. a fee equal to .20% of the average daily net assets
of the each Fund. One trustee of Amana is a trustee of North American Islamic
Trust.
Saturna Capital also acts as transfer agent to each Fund of the Trust for a fee
of $1.10 per month per active account. The Trust acts as distributor of its own
shares, except in those states where Investors National Corporation (a
subsidiary of Saturna Capital Corporation) is registered as a broker-dealer and
is willing to act as distributor without compensation. Investors National
Corporation, a discount broker, often executes securities transactions for the
Funds at Investors National's discount commission rate: 4 cents per share plus
the price of one share.
All trustees serve without compensation.
EXPERIENCE IS IMPORTANT
Amana Mutual Funds Trust began operations in 1986. Saturna Capital, with
extensive experience in mutual funds, invests the Fund portfolios and handles
their operations.
The Trust is managed by a Board of five Trustees, all serving without
compensation:
TRUSTEES
Bassam Osman, MD, CHAIRMAN
Nicholas Kaiser, MBA, PRESIDENT
M. Yaqub Mirza, PhD, TREASURER
Jamal M. al-Barzinji, PhD
Iqbal Unus, PhD
OFFICERS
Bassam Osman, CHAIRMAN
Nicholas Kaiser, PRESIDENT
M. Naziruddin Ali, VICE PRESIDENT
James D. Winship, SECRETARY
M. Yaqub Mirza, TREASURER
Meredith Ross, ASST. TREASURER
Iqbal Unus, ASST. SECRETARY
SATURNA CAPITAL
(Grpahic omitted)
INVESTMENT ADVISER
AND
ADMINISTRATOR
NORTH AMERICAN ISLAMIC TRUST
RELIGIOUS CONSULTANT
THIS REPORT IS FOR THE INFORMATION OF THE SHAREOWNERS OF THE TRUST. IT IS NOT
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS IT IS ACCOMPANIED OR
PRECEDED BY AN EFFECTIVE PROSPECTUS.
AMANA
MUTUAL FUNDS TRUST
INCOME FUND
GROWTH FUND
NOVEMBER 30, 1995
REPORT
1300 No. State Street
Bellingham WA 98225-4730
(1-800/728-8762)1-800/SATURNA
FAX: 1-360/734-0755
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