Semi-Annual Report
(Graphic Omitted)
Income Fund - Growth Fund
S e m i - A n n u a l
Report
December 16, 1997
Fellow Shareowners:
These are risky markets. Stocks jump or plunge almost instantaneously on minor
news events, with 10% of a company's shares trading in an hour. Millions of
market watchers mean a crisis in one country leads to quick declines in markets
everywhere. As value investors, the Amana Funds seek investment profits from
sound, growing, established businesses that it can hold for several years. We
know that some days, weeks, months and perhaps whole years will see declines in
our market values - while believing that over the longer term, those willing to
take such risks are rewarded with higher returns.
The current restructuring of Asia's businesses presages years of fierce
competition. Prices of many commodities are dropping rapidly, and US inflation
is at the lowest levels in a decade. We see little chance of higher US interest
rates, which will encourage continued productive corporate investments in new
equipment, new workers and new buildings. Technology stocks are falling out of
favor and large, "high quality" companies should be the best investments as the
US economy slows next year. As competitive barriers fall, "survival of the
fittest" becomes the rule.
AMANA INCOME FUND returned 7.9% to shareowners for the six months, a very
respectable return given its conservative, income-oriented investment focus. The
Fund returned 18.5% for the twelve months ended November 28, 1997. As a
comparison, Saturna Capital's index of Islamic stocks in the S&P 500 (currently
382 issues) returned 14.0% for the same twelve months - which was considerably
less than the 28.5% return on the full S&P 500. Helped by a long bull market,
Amana Income Fund has returned an average 12.0% per year for the last ten years.
Assets, at $18 million, are up 18% from one year ago. The Fund, which is
sensitive to interest rates, has benefited as long-term rates have fallen to
under 6% from 6.80% a year ago.
AMANA GROWTH FUND returned 9.2% to shareowners for the six months. The Fund's
return for the twelve months ended November 28, 1997 was 17.5%. As a comparison,
the S&P 600 SmallCap Index returned 24.5% and the Russell 2000 Index returned
23.2% for the same twelve months. Amana Growth Fund, which began operations in
February 1994, has returned an annual average of 18% for the three years since
November 1994. Assets, at $7.6 million, are up 36% in one year.
Your board is proud of Amana's years of successful Islamic investment
experience, and the continued growth of assets as the Trust's reputation widens.
We appreciate your investing with us. If you have any questions or need help,
please call us at 800/SATURNA. Fund prices are available daily at 888/72-AMANA.
And Saturna Capital's website (www.saturna.com/amana) is an excellent source of
reports, information, and prices.
Respectfully,
Nicholas Kaiser, President
November 30, 1997 Report
<PAGE>
Investments
INCOME
(Graphic Omitted)
AMANA
<TABLE>
<CAPTION>
Number Market
Issue of Shares Cost Value
- - --------------------------------- --------- --------- ---------
COMMON STOCKS (89.6%)
<S> <C> <C> <C>
BUSINESS SERVICES (2.6%)
Cognizant 6,500 177,890 278,687
Dun & Bradstreet 6,500 123,900 182,000
--------- ---------
SUB-TOTAL - 301,790 460,687
CHEMICALS (3.8%)
ARCO Chemical 6,500 238,792 297,781
Chemed 10,000 356,116 391,250
--------- ---------
SUB-TOTAL - 594,908 689,031
MACHINERY (5.0%)
Manitowoc Company 27,000 276,657 899,438
MANUFACTURING (1.7%)
General Motors 5,000 328,965 305,000
MINING (4.5%)
ASARCO 20,000 578,558 497,500
Rio Tinto plc ADS 6,500 386,557 318,500
--------- ---------
SUB-TOTAL - 965,115 816,000
OIL & GAS PRODUCTION (12.2%)
Atlantic Richfield 8,000 447,256 652,000
Enron 11,000 432,158 426,250
Exxon 10,000 307,279 610,000
Mobil Corporation 7,000 395,105 503,563
--------- ---------
SUB-TOTAL - 1,581,798 2,191,813
PAINT AND ALLIED PRODUCTS (2.3%)
R P M, Inc 20,312 182,267 406,240
PAPER & PAPER PRODUCTS (3.6%)
Boise Cascade 13,000 426,205 437,937
Consolidated Papers 4,000 218,214 215,500
--------- ---------
SUB-TOTAL - 644,419 653,437
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Semi-Annual Report
INCOME
Investments
<TABLE>
<CAPTION>
Number Market
Issue of Shares Cost Value
- - ------------------------------------------- --------- ----------- -----------
PHARMACEUTICALS (11.2%)
<S> <C> <C> <C>
American Home Products 10,000 242,862 698,750
Bristol-Myers Squibb 9,280 206,068 868,840
Glaxo-Wellcome plc ADR 10,000 260,427 456,875
----------- -----------
SUB-TOTAL - 709,357 2,024,465
TELECOMMUNICATIONS (17.9%)
BCE, Inc 26,000 436,370 788,125
Cable & Wireless PLC ADR 20,000 408,074 538,750
GTE 10,000 410,441 507,500
SBC Communications 10,240 375,305 745,600
Telefonica de Espana, ADR 7,500 202,956 648,750
----------- -----------
SUB-TOTAL - 1,833,146 3,228,725
TOOLS (3.0%)
Regal-Beloit 20,000 357,762 543,750
TRANSPORTATION (1.6%)
Canadian Pacific Ltd. 10,000 266,577 283,125
UTILITIES - ELECTRIC (16.5%)
Edison International 10,000 201,570 268,125
Enova Corporation 22,000 482,336 572,000
FPL Group 10,000 344,874 559,375
NIPSCO Industries 10,000 362,972 468,125
Pacific Gas & Electric 20,000 458,942 565,000
Washington Water Power 25,000 441,583 534,375
----------- -----------
SUB-TOTAL - 2,292,277 2,967,000
UTILITIES -WATER & GAS (3.7%)
Piedmont Natural Gas 20,200 286,927 660,288
----------- -----------
TOTAL INVESTMENTS (89.6%) - $10,621,965 $16,128,999
=========== ===========
Other Assets (net of liabilities) (10.4%) - 1,873,283
-----------
TOTAL NET ASSETS (100%) - - $18,002,282
===========
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
AMANA
Statement of Assets and Liabilities
INCOME
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Common stocks (cost $10,621,965) $16,128,999 -
Cash 1,821,812 -
Dividends receivable 58,685 -
Insurance deposit 2,529 -
-----------
Total Assets - $18,012,025
-----------
LIABILITIES
Payable to affiliate 9,743 -
-----------
Total liabilities - 9,743
-----------
NET ASSETS - $18,002,282
===========
FUND SHARES OUTSTANDING - 1,007,317
ANALYSIS OF NET ASSETS
Paid in capital (unlimited shares authorized, without par value) $10,803,930 -
Undistributed net realized gain on investments 1,691,318 -
Unrealized net appreciation on investments 5,507,034 -
-----------
Net Assets applicable to Fund shares outstanding $18,002,282
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 17.87
===========
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Semi-Annual Report
INCOME
Statement of
Operations
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Dividends (net of Foreign Taxes of $2,740) $ 238,935 -
Miscellaneous income 260 -
----------
Gross investment income - $239,195
EXPENSES
Investment advisor and administration fees 83,049 -
Shareowner servicing 12,403 -
Filing and registration fees 7,235 -
Professional fees 6,532 -
Printing and postage 4,161 -
Other expenses 2,230 -
---------- --------
Total gross expenses 115,610 -
Net expenses - 115,610
--------
Net investment income - 123,585
----------
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales 1,365,709 -
Less cost of securities sold based on identified cost 958,211 -
---------- --------
Realized net gain - 407,498
----------
UNREALIZED GAIN ON INVESTMENTS
End of period 5,507,034 -
Beginning of period 4,778,465 -
---------- --------
Increase in unrealized gain for the period - 728,569
---------- --------
Net realized and unrealized gain on investments 1,136,067
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,259,652
==========
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Statement of Changes in Net Assets
INCOME
<TABLE>
<CAPTION>
INCREASE IN NET ASSETS Period ended Year ended
Nov. 30, 1997 May 31, 1997
--------------- --------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 123,585 $ 357,730
Net realized gain on investments 407,498 188,938
Net increase in unrealized appreciation 728,569 2,586,861
--------------- --------------
Net increase in net assets 1,259,652 3,133,529
--------------- --------------
DIVIDENDS TO SHAREOWNERS FROM
Net investment income 0 (410,453)
Capital gains distributions 0 (135,100)
--------------- --------------
0 (545,553)
--------------- --------------
FUND SHARE TRANSACTIONS
Proceeds from sales of shares 1,796,116 3,573,470
Value of shares issued in reinvestment of dividends 0 533,571
--------------- --------------
1,796,116 4,107,041
Cost of shares redeemed (1,385,064) (2,827,835)
--------------- --------------
Net increase in net assets from share transactions 411,052 1,279,206
--------------- --------------
Total increase in net assets 1,670,704 3,867,182
NET ASSETS
Beginning of period 16,331,578 12,464,396
--------------- --------------
End of period $ 18,002,282 $ 16,331,578
=============== ==============
Shares of the Fund Sold and Redeemed
Number of shares sold 116,887 338,478
Number of shares issued in reinvestment of dividends 0 34,497
--------------- --------------
116,887 372,975
Number of shares redeemed (92,923) (284,173)
--------------- --------------
Net Increase in Number of Shares Outstanding 23,964 88,802
=============== ==============
</TABLE>
November 30, 1997 Report
<PAGE>
INCOME
FINANCIAL HIGHLIGHTS
(Graphic Omitted)
Semi-Annual Report
<TABLE>
<CAPTION>
Selected data per share of outstanding capital stock outstanding throughout
each period.
Period Ended For Year Ended May 31
--------------------------------------------------------------------
Nov.30,1997 1997 1996 1995 1994 1993 1992 1991 1990
----------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 16.61 $ 13.93 $ 12.92 $ 12.18 $ 12.86 $11.94 $11.36 $10.86 $10.39
-------- -------- -------- -------- -------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.12 0.38 0.42 0.38 0.30 0.32 0.32 0.39 0.38
Net gains or losses on securities
(both realized and unrealized) 1.14 2.86 1.76 0.80 (0.36) 0.92 0.58 0.46 0.53
-------- -------- -------- -------- -------- ------- ------- ------- -------
Total from investment operations 1.26 3.24 2.18 1.18 (0.06) 1.24 0.90 0.85 0.91
-------- -------- -------- -------- -------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends (from net investment
income) 0.00 (0.42) (0.41) (0.44) (0.30) (0.32) (0.32) (0.35) (0.44)
Distributions (from capital gains 0.00 (0.14) (0.76) 0.00 (0.32) 0.00 0.00 0.00 0.00
-------- -------- -------- -------- -------- ------- ------- ------- -------
Total distributions 0.00 (0.56) (1.17) (0.44) (0.62) (0.32) (0.32) (0.35) (0.44)
-------- -------- -------- -------- ------- ------- ------- ------- -------
NET ASSET VALUE AT END
OF PERIOD $ 17.87 $ 16.61 $ 13.93 $ 12.92 $ 12.18 $12.86 $11.94 $11.36 $10.86
-------- -------- -------- -------- -------- ------- ------- ------- -------
TOTAL RETURN 7.59% 23.62% 17.03% 9.95% (0.63)% 10.26% 7.88% 8.11% 8.85%
RATIOS / SUPPLEMENTAL DATA
- - ------------------------------------
Net assets($000), end of period $18,002 $16,332 $12,464 $10,708 $10,432 $9,398 $6,913 $5,868 $4,760
Ratio of gross expenses to ave. net
assets (not annualized) 0.68% 1.55% 1.57% 1.56% 1.58% 1.58% 1.58% 1.66% 1.76%
Ratio of net investment income to
ave. net assets (not annualized) 0.71% 2.51% 3.06% 3.11% 2.22% 2.65% 2.75% 3.73% 3.67%
Portfolio turnover rate 3% 14% 24% 29% 21% 29% 19% 29% 19%
Average commission rate paid $0.0347 $0.0336 $0.0460
1989 1988
------ ------
<S> <C> <C>
NET ASSET VALUE AT BEGINNING
OF PERIOD $ 9.11 $ 10.73
------- ---------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.38 0.30
Net gains or losses on securities
(both realized and unrealized) 1.29 (1.65)
------- ---------
Total from investment operations 1.67 (1.35)
------- ---------
LESS DISTRIBUTIONS
Dividends (from net investment
income) (0.39) (0.27)
Distributions (from capital gains) 0.00 0.00
------- ---------
Total distributions (0.39) (0.27)
------- ---------
NET ASSET VALUE AT END
OF PERIOD $10.39 $ 9.11
------- ---------
TOTAL RETURN 18.86% (12.68)%
RATIOS / SUPPLEMENTAL DATA
- - ------------------------------------
Net assets ($000), end of period $3,645 $ 3,559
Ratio of gross expenses to ave. net
assets (not annualized) 1.88% 2.07%
Ratio of net investment income to
ave. net assets (not annualized) 3.85% 3.17%
Portfolio turnover rate 71% 66%
Average commission rate paid
</TABLE>
(GRAPH OMITTED)
To illustrate investment risk, the chart shows total return for each of the last
10 fiscal years. While the average annual return has been 8.7%, returns in
individual years varied from -12.6% (1988) to +23.6% (1997). November 30, 1997
Report
<PAGE>
Investments
GROWTH
(Graphic Omitted)
AMANA
<TABLE>
<CAPTION>
Number Market
Issue of Shares Cost Value
- - -------------------------------- --------- -------- --------
COMMON STOCKS (77.2%)
AUTO PARTS (1.2%)
<S> <C> <C> <C>
Genuine Parts 3,000 $ 89,355 $ 96,000
BUILDING (1.5%)
Champion Enterprises* 6,000 113,562 116,250
CHEMICALS (1.2%)
RPM, Inc. 4,625 71,869 92,500
COMPUTER HARDWARE (8.7%)
Advanced Digital Information* 6,000 33,778 112,500
Compaq Computer* 5,000 92,663 312,500
Hewlett-Packard 2,000 41,638 122,125
Symbol Technologies 3,000 97,435 117,188
-------- --------
SUB-TOTAL - 265,514 664,313
DIVERSIFIED OPERATIONS (0.9%)
Hutchison Wampoa ADR - 43333 67625
COMPUTER SOFTWARE (8.6%)
Adobe Systems 3,000 115,558 126,000
Cisco Systems* 1,000 85,866 86,250
IDX Systems* 2,000 32,691 60,000
Microsoft* 600 30,017 84,900
Netscape* 30 0 855
Olicom A/S* 6,000 112,707 172,500
Oracle* 3,600 78,773 119,925
-------- --------
SUB-TOTAL - 455,612 650,430
ELECTRONICS (10.8%)
FLIR* 8,000 109,013 158,000
GaSonics International* 12,000 110,311 159,000
Intel 1,200 91,912 93,150
Merix* 5,500 101,977 81,125
Motorola 1,800 98,916 113,175
Qualcomm* 2,500 72,970 169,375
World Access* 2,000 18,819 49,000
-------- --------
SUB-TOTAL - 603,918 822,825
</TABLE>
November 30, 1997 Report
<PAGE>
Investments
GROWTH
(Graphic Omitted)
Semi-Annual Report
<TABLE>
<CAPTION>
Market
Issue of Shares Cost Value
- - ----------------------------------- --------- ------- -------
FINANCIAL INFORMATION (1.8%)
<S> <C> <C> <C>
Reuters Holdings PLC-ADR 1,000 43,333 67,625
------- -------
FOOD PRODUCTION (2.7%)
Pioneer Hi-Bred International 1,100 77,929 112,337
Potash Corp of Saskatchewan 1,200 87,709 94,425
------- -------
SUB-TOTAL - 165,638 206,762
MACHINERY (5%)
Crane 3,000 76,234 126,375
Manitowoc 3,000 104,325 99,938
Valley Forge 10,500 105,321 156,844
------- -------
SUB-TOTAL - 285,880 383,157
MINING (1.9%)
Cyprus Amax Minerals 4,000 96,600 73,250
Freeport McMoran Copper & Gold B 2,000 70,595 41,875
Rio Tinto plc ADS 600 30,466 29,400
------- -------
SUB-TOTAL - 197,661 144,525
OIL & GAS PRODUCTION (5.2%)
Atlantic Richfield 1,800 104,880 146,700
Williams Companies 1,800 60,536 96,187
YPF S.A. ADB 4,500 99,630 151,031
------- -------
SUB-TOTAL - 265,046 393,918
PAPER & PUBLISHING (1.8%)
McGraw-Hill 2,000 89,380 136,875
PHARMACEUTICALS (7%)
Bone Care International* 6,000 73,615 60,000
Glaxo Wellcome plc ADR 2,500 55,379 114,219
Johnson & Johnson 2,000 91,871 125,875
Ligand Pharmaceuticals* 4,000 58,132 51,000
Novo-Nordisk A/S ADR 2,000 111,090 122,875
Urologix* 3,000 48,106 59,625
------- -------
SUB-TOTAL - 438,193 533,594
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Investments
GROWTH
AMANA
<TABLE>
<CAPTION>
Number Market
Issue of Shares Cost Value
- - ------------------------------------------- ---------- ---------- --------
PHOTOGRAPHIC SUPPLIES (1%)
<S> <C> <C> <C>
Fuji Photo Film ADR 2,000 $ 46,837 $ 71,750
REAL ESTATE (1.1%)
Intrawest 5,000 78,306 84,375
RETAIL (4.1%)
Gap 3,500 111,606 187,906
Seattle Film Works* 12,500 131,576 123,438
---------- --------
SUB-TOTAL - 243,182 311,344
TELECOMMUNICATIONS (3.7%)
PT Indostat ADR 2,000 69,719 44,750
Tele Danmark A/S ADR 3,000 76,615 89,625
Telefonica de Espana ADS 1,700 70,376 147,050
---------- --------
SUB-TOTAL - 216,710 281,425
TOOLS (2.2%)
Regal-Beloit 6,000 107,448 163,125
TRANSPORTATION (7%)
Fritz Companies* 8,500 101,198 112,094
Halter Marine Group* 1,566 18,511 43,652
Mesa Airlines* 10,000 87,781 55,000
Southwest Airlines 7,500 132,586 183,281
Trinity Industries 3,000 83,987 136,125
---------- --------
SUB-TOTAL - 424,063 530,152
WATER TREATMENT (.7%)
Ionics* 1,500 69,467 55,312
TOTAL INVESTMENTS (77.2%) 4,270,974 5,806,257
========== ==========
Other Assets (net of liabilities) (22.8%) 1,739,162
----------
TOTAL NET ASSETS (100%) $7,545,419
==========
*Non-Income producing security
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
GROWTH
STATEMENTS OF ASSETS AND LIABILITIES
SEMI-ANNUAL REPORT
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Common stocks (cost $4,333,065) $5,872,757 -
Cash 1,739,985 -
Dividends receivable 3,703
----------
Total Assets - $7,616,445
----------
LIABILITIES
Payable to affiliate 4,526 -
Total Liabilities - 4,526
----------
NET ASSETS - $7,611,919
==========
FUND SHARES OUTSTANDING - 985,699
==========
ANALYSIS OF NET ASSETS
Paid in capital (unlimited shares authorized, without par) value $5,728,355 -
Undistributed net realized gain on investments 343,872 -
Unrealized net appreciation on investments 1,539,692 -
----------
Net Assets applicable to Fund shares outstanding - $7,611,919
==========
NET ASSET VALUE,OFFERING AND REDEMPTION PRICE PER SHARE - $ 7.72
==========
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Statement of
Operations
GROWTH
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Dividends (net of Foreign Taxes of $35) $ 25,003 -
Miscellaneous Income 2,867
----------
Gross investment income $ 27,870
EXPENSES
Investment advisor and administration fee 32,953 -
Filing and registration fees 5,499 -
Shareowner servicing 6,654 -
Professional fees 3,228 -
Printing and postage 1,810 -
Other expenses 1518 -
----------
Total gross expenses 51,662 -
Net expenses - 51,662
--------
Net investment income (loss) - (23,792)
---------- --------
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales 919,969 -
Less cost of securities sold based on identified cost 706,103 -
---------- --------
Realized net gain - 213,866
UNREALIZED GAIN ON INVESTMENTS
End of period 1,539,692 -
Beginning of period 1,210,050 -
---------- --------
Increase in unrealized gain for the period - 329,642
---------- --------
Net realized and unrealized gain on investments 543,508
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 519,716
==========
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Semi-Annual Report
GROWTH
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
INCREASE IN NET ASSETS Period ended Year ended
Nov. 30, 1997 May 31, 1997
--------------- --------------
FROM OPERATIONS
<S> <C> <C>
Net investment income (loss) $ (23,792) $ (31,525)
Net realized gain on investments 213,866 80,406
Net increase in unrealized appreciation 329,642 325,603
--------------- --------------
Net increase in net assets 519,716 374,484
--------------- --------------
DIVIDENDS TO SHAREOWNERS FROM
Net investment income 0 0
Capital gains distributions 0 (74,024)
--------------- --------------
0 (74,024)
--------------- --------------
FUND SHARE TRANSACTIONS
Proceeds from sales of shares 1,791,026 3,083,797
Value of shares issued in reinvestment of dividends 0 71,472
--------------- --------------
1,791,026 3,155,269
Cost of shares redeemed (622,875) (1,682,459)
--------------- --------------
Net increase in net assets from share transactions 1,168,151 1,472,810
--------------- --------------
Total increase in net assets 1,687,867 1,773,270
NET ASSETS
Beginning of period 5,924,052 4,150,782
--------------- --------------
End of period $ 7,611,919 $ 5,924,052
=============== ==============
Shares of the Fund Sold and Redeemed
Number of shares sold 249,669 497,832
Number of shares issued in reinvestment of dividends - 11,116
--------------- --------------
249,669 508,948
Number of shares redeemed (101,359) (276,621)
--------------- --------------
Net Increase (Decrease) in Number of Shares Outstanding 148,310 232,327
=============== ==============
</TABLE>
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Financial
Highlights
GROWTH
<TABLE>
<CAPTION>
Selected data per share of outstanding capital stock outstanding throughout each
period.
Period Year Year Year
Ending Ending Ending Ending
Nov30,1997 May31,1997May31,1996 May31, 1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 7.07 $ 6.86 $ 5.04 $ 4.69
--------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.03) (0.02) (0.05) (0.04)
Net gains or losses on securities
(both realized and unrealized) 0.68 0.32 1.95 0.39
--------- -------- -------- --------
Total from investment operations 0.65 0.30 1.90 0.35
--------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends (from net investment income) 0.00 0.00 0.00 0.00
Distributions (from capital gains) 0.00 (0.09) (0.08) 0.00
--------- -------- -------- --------
Total distributions 0.00 (0.09) (0.08) 0.00
--------- -------- -------- --------
NET ASSET VALUE AT END OF PERIOD $ 7.72 $ 7.07 $ 6.86 $ 5.04
========= ======== ======== ========
TOTAL RETURN 9.19% 4.46% 37.20% 7.46%
RATIOS/SUPPLEMENTAL DATA
- - ---------------------------------------------------------------------
Net assets ($000), end of period $ 7,612 $ 5,924 $ 4,151 $ 1,974
Ratio of gross expenses to average net assets (not annualized) 0.75% 1.62% 1.94% 2.00%
Ratio of net investment income to average net assets (not annualized) -(0.34)% (0.60)% (0.79)% (0.82)%
Portfolio turnover rate (not annualized) 11% 25% 22% 38%
Average commission rate paid $ 0.0391 $0.0396 $0.0596 -
-
2/3/1994
(Inception)
May 31, 1994
--------------------------
<S> <C>
NET ASSET VALUE AT BEGINNING OF PERIOD $ 5.00
--------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income - -
Net gains or losses on securities
(both realized and unrealized) (0.30)
--------------------------
Total from investment operations (0.30)
--------------------------
LESS DISTRIBUTIONS
Dividends (from net investment income) (0.01)
Distributions (from capital gains) 0.00
--------------------------
Total distributions (0.01)
--------------------------
NET ASSET VALUE AT END OF PERIOD $ 4.69
==========================
TOTAL RETURN -(6.20)%
RATIOS/SUPPLEMENTAL DATA
- - ---------------------------------------------------------------------
Net assets ($000), end of period $ 952
Ratio of gross expenses to average net assets (not annualized) 0.62%
Ratio of net investment income to average net assets (not annualized) (0.35)%
Portfolio turnover rate (not annualized) 6%
Average commission rate paid
-
</TABLE>
(graph omitted)
November 30, 1997 Report
<PAGE>
(Graphic Omitted)
Semi-Annual Report
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 in-vestment company under the Investment Company Act of 1940,
as amended. The Trust restricts its in-vestments 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 benefi-cial
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 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. North American Islamic Trust, Inc. is the religious consultant to
Saturna regarding Islamic principles. From its advisory fee, Saturna pays North
American Islamic Trust, Inc. a fee equal to .20% of the average daily net assets
of each Fund. One trustee of Amana is a trustee of North American Islamic Trust.
Saturna Capital also acts as a transfer agent to each Fund for a fee of $1.50
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: 3 cents per share plus the price
of one share.
All trustees serve without compensation.
November 30, 1997 Report
<PAGE>
Amana Mutual Funds Trust began operations in 1986. Saturna Capital Corporation,
with extensive experience in mutual funds, invests the Fund portfolios and
handles daily operations by direction of the Board of Trustees.
Investment Advisor and Administrator Saturna Capital Corporation
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Religous Consultant North American Islamic Trust
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Custodian National City Bank of Indiana
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Auditors Tait, Weller & Baker, Philadelphia
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Legal Counsel Sommer & Barnard, Indianapolis
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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.
1300 N. State Street
Bellingham, WA 98225-4730
1-800/SATURNA
(1-800/728-8762)
email: [email protected]
(Graphic Omitted)
Amana Mutual Funds Trust
Growth - Income
Semi-Annual Report
November 30, 1997
<PAGE>
