Semi-Annual Report
(Graphics Omitted)
Income Fund - Growth Fund
S e m i - A n n u a l
Report
January 4, 1999
Fellow Shareowners:
These are volatile markets. Stocks jump or plunge almost instantaneously on
minor news events. Millions of market watchers mean an "internet" rumor doubles
a stock's price, or a crisis in economically-insignificant Russia leads to quick
declines everywhere. As value investors, the Amana Funds seek investment profits
from sound, growing, established businesses that can be held for several years.
While both Amana Funds recorded nice gains for calendar 1998, we know that some
days, weeks, months and perhaps whole years will see declines in our market
prices. Over the years, however, those willing to take risks are rewarded with
higher returns. Prices of most commodities are dropping, and US inflation is
negligible. The restructuring of many offshore businesses presages years of
fierce competition. We see continuing low interest rates, which encourage
productive corporate investments in new equipment, new workers and new
facilities. While technology stocks were all the rage in 1998, "high quality"
companies should be the best investments as the US economy slows in 1999 and
2000. When competitive barriers fall, "survival of the fittest" becomes the
rule. AMANA INCOME FUND, which only broke even for the first six months of its
fiscal year ended November 30, 1998, returned a total 14.1% for the 1998
calendar year. As a comparison, Saturna Capital's "Islamic 500" large-cap stock
index returned 32.3% and the Dow Jones Industrial index returned 18.1% for
calendar 1998. Helped by a long bull market, Amana Income Fund has returned an
average 11.8% per year for the last ten calendar years. Assets, at $22 million,
are up 23% from one year ago. The Fund benefited as long-term interest rates
fell to around 5% from 6% a year ago. AMANA GROWTH FUND, with only a slight gain
for the first six months of its fiscal year ended November 30, 1998, returned a
higher total of 16.8% for the full 1998 calendar year. For the almost five years
from its February 1994 inception to December 31, 1998, the Fund has provided an
annual average total return of 13.0%. As a comparison, Saturna's "Islamic 400"
mid-cap stock index returned 18.3%, while the Russell 2000 Index lost 2.2% for
calendar 1998. Amana Growth Fund's assets, at $8.7 million, are up 14% in one
year. Your board is proud of Amana's years of successful Islamic investment
experience, and the growth of assets as the Trust's reputation widens. During
the year, the board ascertained that the Trust and Saturna Capital are ready for
Year 2000, and diligently worked to enhance Fund operations and performance. If
you have questions or need investment help, please call us at 800/SATURNA. Fund
prices are available daily at 888/72-AMANA. Saturna Capital's website
(www.saturna.com/amana) is an excellent source of reports, information, and
prices. Respectfully, Nicholas Kaiser, President
November 30, 1998 Report
<PAGE>
Investments
INCOME
(Graphic s Omitted)
AMANA
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value
- -------------------------------- ---------------- --------- ------------
COMMON STOCKS (90.1%) - - -
<S> <C> <C> <C>
- - - - -
ADVERTISING (.1%) - - -
- - R.H. Donnelley 1,300 10,978 19,419
- - - - -
AEROSPACE (1.4%) - - -
Raytheon Co-Cl A 6,000 317,697 328,125
- - - - -
AUTOMOTIVE (1.6%) - - -
- - Genuine Parts 11,000 355,744 362,312
- - - - -
BUSINESS SERVICES (1%) - - -
- - Dun & Bradstreet 6,500 112,923 196,219
- - - - -
CHEMICALS (2.1%) - - -
- - Chemed 14,000 511,314 474,250
- - - - -
MACHINERY (3.2%) - - -
- - Manitowoc Company 18,000 174,471 714,375
- - - - -
MEDICAL (13.6%) - - -
- - American Home Products 15,200 193,026 809,400
- - Bristol-Myers Squibb 9,280 206,068 1,135,640
- - Glaxo-Wellcome plc ADR 10,000 260,427 635,000
- - IMS Health 6,500 165,153 431,438
--------- ------------
SUB-TOTAL - 824,674 3,011,478
- - - - -
MINING (2.5%) - - -
- - Cyprus Amax Minerals 12,000 147,435 136,500
- - Rio Tinto plc ADS 9,000 521,085 432,000
--------- ------------
SUB-TOTAL - 668,520 568,500
- - - - -
OIL & GAS PRODUCTION (15.4%) - - -
- - Amoco 7,000 411,519 412,562
- - Atlantic Richfield 10,000 591,408 665,000
- - Exxon 10,000 307,279 750,625
- - Fletcher Challenge Energy ADR 20,000 493,562 408,750
- - Mobil 7,000 395,105 603,313
- - Enron 11,000 432,158 578,187
--------- ------------
- - SUB-TOTAL - 2,631,031 3,418,437
- - - - -
PAINT AND ALLIED PRODUCTS (2%) - - -
- - RPM, Inc 25,390 182,267 415,761
</TABLE>
November 30, 1998 Report
<PAGE>
(Graphic Omitted)
Semi-Annual Report
INCOME
Investments
<TABLE>
<CAPTION>
ISSUE Number of Shares Costs Market Value
- ---------------------------------------- ---------------- ----------- -------------
<S> <C> <C> <C>
REAL ESTATE (3.2%) - - -
- - Duke Realty Investments 20,000 434,493 453,750
- - Shurgard Storage Centers 10,000 276,631 263,125
----------- -------------
SUB-TOTAL - 711,124 716,875
- - - - -
TELECOMMUNICATIONS (18.5%) - - -
- - BCE, Inc 19,600 324,207 697,025
- - Cable & Wireless PLC ADR 20,000 408,074 755,000
- - GTE 10,000 410,441 620,000
- - SBC Communications 20,480 375,305 981,760
- - Telefonica de Espana, ADR 7,500 202,956 1,045,313
----------- -------------
SUB-TOTAL - 1,720,983 4,099,098
- - - - -
TOOLS (2.3%) - - -
- - Regal-Beloit Corporation 20,000 357,762 500,000
- - - - -
TRANSPORTATION (2%) - - -
- - Canadian Pacific Ltd. 20,000 491,899 441,250
- - - - -
UTILITIES- GAS & ELECTRIC (21.2%) - - -
- - Duke Energy 5,000 296,509 312,812
- - Edison International 13,000 287,969 357,500
FPL Group 10,000 344,874 612,500
- - NIPSCO Industries 24,000 469,159 703,500
- - Pacific Gas & Electric 20,000 458,942 618,750
- - Piedmont Natural Gas 20,200 286,927 707,000
- - Puget Sound Energy 10,000 285,992 271,250
- - Sempra Energy 26,000 584,021 651,625
- - Washington Water Power-Pref. 25,000 441,583 465,625
----------- -------------
SUB-TOTAL - 3,455,976 4,700,562
- - - - -
TOTAL INVESTMENTS (90.1%) - $12,527,363 $ 19,966,661
=========== =============
Other Assets (net of liabilities) (9.9%) - - 2,190,968
-------------
TOTAL NET ASSETS (100%) - - $ 22,157,629
=============
- - - - -
</TABLE>
November 30, 1998 Report
<PAGE>
(Graphics Omitted)
AMANA
Statement of Assets and Liabilities
INCOME
<TABLE>
<CAPTION>
For November 30, 1998
Assets
<S> <C> <C>
Common stocks (cost $12,527,363) $19,966,661 -
Cash 2,154,467
Dividends receivable 47,405
Insurance reserve premium 7,763
-----------
Total Assets $22,176,296
Liabilities
Payable to affiliate 18,316
Other liabilities 351
-----------
Total liabilities 18,667
Net Assets $22,157,629
===========
Fund shares outstanding 1,121,260
Analysis of Net Assets
Paid in capital (unlimited shares authorized,
without par value) $14,073,494
Undistributed net realized gains on investments 644,837
Unrealized net appreciation on investments 7,439,298
-----------
Net Assets applicable to fund shares outstanding $22,157,629
===========
Net Asset Value, Offering and Redemption price per share $ 19.76
</TABLE>
November 30, 1998 Report
<PAGE>
(Graphics Omitted)
Semi-Annual Report
INCOME
Statement of Operations
<TABLE>
<CAPTION>
For six months ended November 30, 1998
<S> <C> <C>
INVESTMENT INCOME - -
Dividends (net of foreign taxes of $2,651) $ 246,147
Miscellaneous income 194
-----------
Gross investment income $ 246,341
EXPENSES
Investment adviser and administration fees 97,596
Shareowner servicing 14,750
Filing and registration fees 7,932
Professional fees 6,485
Printing and postage 5,556
Other expenses (505)
-----------
Total expenses 131,814
----------
Net investment income 114,527
----------
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales 2,427,942
Less cost of securities sold
(based on identified cost) 1,851,401
-----------
Realized net gain 576,541
----------
UNREALIZED GAIN ON INVESTMENTS
End of period 7,439,298
Beginning of period 8,105,694
-----------
Increase (decrease) in unrealized gain for the period (666,396)
----------
Net realized and unrealized gain (loss) on investments (89,855)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 24,672
==========
</TABLE>
November 30, 1998 Report
<PAGE>
(Graphics Omitted)
Statement of Changes in Net Assets
INCOME
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE IN NET ASSETS Period ended Year ended
Nov. 30,1998 May 31,1998
-------------- -------------
FROM OPERATIONS:
Net investment income $ 114,527 $ 261,657
Net realized gain on investments 576,541 320,610
Net increase (decrease) in unrealized appreciation (666,396) 3,327,229
-------------- -------------
Net increase in net assets 24,672 3,909,496
-------------- -------------
DIVIDENDS TO SHAREOWNERS FROM:
Net investment income 0 (220,732)
Capital gains distributions 0 (471,050)
-------------- -------------
Total distributions 0 (691,782)
-------------- -------------
FUND SHARE TRANSACTIONS:
Proceeds from sales of shares 3,895,373 4,096,616
Value of shares issued in reinvestment of dividends 0 678,726
-------------- -------------
3,895,373 4,775,342
Cost of shares redeemed (1,648,628) (4,438,422)
-------------- -------------
Net increase in net assets from share transactions 2,246,745 336,920
-------------- -------------
Total increase in net assets 2,271,417 3,554,634
NET ASSETS
Beginning of period 19,886,212 16,331,578
-------------- -------------
End of period $ 22,157,629 $ 19,886,212
============== =============
Shares of the fund sold and redeemed
Number of shares sold 207,232 223,179
Number of shares issued in reinvestment of dividends 0 37,711
-------------- -------------
207,232 260,890
Number of shares redeemed (92,642) (237,572)
-------------- -------------
Net increase in number of shares outstanding 114,590 23,318
============== =============
</TABLE>
November 30, 1998 Report
<PAGE>
Semi-Annual Report
(Graphics Omitted)
INCOME
Financial Highlights
<TABLE>
<CAPTION>
Selected data per share of outstanding capital stock throughout each period.
Period Ended Year ended May 31
-------------------
<S> <C> <C> <C> <C> <C> <C>
- - Nov. 30,'98 1998 1997 1996 1995 1994
-------------- -------- -------- ------------------- -------- --------
NET ASSET VALUE AT BEGINNING OF PERIOD $ 19.76 $ 16.61 $ 13.93 $ 12.92 $ 12.18 $ 12.86
-------------- -------- -------- ------------------- -------- --------
Income from investment operations
Net investment income 0.10 0.26 0.38 0.42 0.38 0.30
Net gains or losses on securities
(both realized and unrealized) (0.10) 3.58 2.86 1.76 0.80 (0.36)
-------------- -------- -------- ------------------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.00 3.84 3.24 2.18 1.18 (0.06)
Less distributions
Dividends (from net investment income) 0.00 (0.22) (0.42) (0.41) (0.44) (0.30)
Distributions (from capital gains) 0.00 (0.47) (0.14) (0.76) 0.00 (0.32)
-------------- -------- -------- ------------------- -------- --------
TOTAL DISTRIBUTIONS 0.00 (0.69) (0.56) (1.17) (0.44) (0.62)
-------------- -------- -------- ------------------- -------- --------
NET ASSET VALUE AT END OF PERIOD $ 19.76 $ 19.76 $ 16.61 $ 13.93 $ 12.92 $ 12.18
============== ======== ======== =================== ======== ========
TOTAL RETURN 0.00% 23.51% 23.62% 17.03% 9.95% -0.63%
Ratios / Supplemental Data
- --------------------------------------------------
Net assets ($000), end of period $ 22,158 $19,886 $16,332 $ 12,464 $10,708 $10,432
Ratio of gross espenses to ave. net assets 0.64% 1.36% 1.44% 1.57% 1.56% 1.58%
Ratio of net investment income to ave. net assets 0.56% 1.43% 2.51% 3.06% 3.11% 2.22%
Portfolio turnover rate 13% 8% 14% 24% 29% 21%
</TABLE>
(Graph Omitted)
Amana Income Fund Calendar year Percentage returns
(Data Points)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Year (x) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Percentage (y) 18 -3 23 1 11 -6 27 12 44 14
</TABLE>
Note: Highest return for a quarter was +15.9% (quarter ending March 31, 1991)
Lowest return for a quarter was -8.8% (quarter ending September
26, 1990)
November 30, 1998 Report
<PAGE>
Investments
GROWTH
(Graphics Omitted)
AMANA
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value
- ------------------------------------- ---------------- ------- ------------
<S> <C> <C> <C>
COMMON STOCKS (98%) - -
AUTO PARTS (2.3%)
Genuine Parts 5,000 159,450 164,688
Supreme Industries* 4,200 49,382 40,425
------- ------------
SUB-TOTAL 208,832 205,113
BUILDING (1.5%)
Champion Enterprise* 6,000 113,562 133,875
CHEMICALS (1.1%)
RPM, Inc. 5,781 71,869 94,664
COMPUTER HARDWARE (12.1%)
Advanced Digital Information* 6,000 33,778 85,500
Apple* 5,000 147,680 159,687
Compaq Computer 5,000 36,201 162,500
Hewlett Packard 800 17,600 50,200
ntel 1,200 91,912 129,150
International Business Machines 1,500 156,659 247,500
Symbol Technologies 4,500 97,435 219,375
------- ------------
SUB-TOTAL 581,265 1,053,912
COMPUTER SOFTWARE (16.6%)
America Online* 2,000 87,618 175,500
Adobe Systems 4,200 167,688 187,950
Business Objects SA ADS* 4,000 62,511 76,000
Cisco Systems* 4,500 194,368 339,188
Intuit* 3,000 105,125 173,625
Microsoft* 1,800 85,628 219,600
Olicom A/S* 6,000 112,708 31,875
Oracle* 7,000 154,548 239,750
------- ------------
SUB-TOTAL 970,194 1,443,488
ELECTRONICS (4.5%)
FLIR Systems* 8,000 109,013 154,000
Qualcomm* 3,500 121,548 192,063
World Access* 2,000 18,819 40,625
------- ------------
SUB-TOTAL 249,380 386,688
FINANCIAL INFORMATION (0.6%)
Reuters Holdings PLC-ADR 866 43,333 49,795
</TABLE>
November 30, 1998 Report
<PAGE>
Semi-Annual Report
(Graphics Omitted)
Growth
INVESTMENTS
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value
- ----------------------------------- ---------------- ------- ------------
<S> <C> <C> <C>
FOOD PRODUCTION (3.5%) - -
Pioneer Hi-Bred International 4,500 111,443 134,719
Potash Corp of Saskatchewan 2,700 184,568 166,556
------- ------------
SUB-TOTAL 296,011 301,275
FURNITURE (.7%)
Shelby Williams Industries 5,000 74,555 58,750
MACHINERY (4.6%)
Crane 4,500 76,234 145,406
Manitowoc 3,000 104,325 119,062
Valley Forge 10,500 105,321 135,188
------- ------------
SUB-TOTAL 285,880 399,656
MINING (2.8%)
ASARCO 5,000 116,423 96,875
Rio Tinto plc ADS 3,000 160,897 144,000
------- ------------
277,320 240,875
OIL & GAS (6%)
Atlantic Richfield 2,600 165,029 172,900
Schlumberger Ltd 2,500 169,986 111,719
Williams Companies 3,600 60,536 103,725
YPF S.A. ADS 4,500 99,630 133,031
------- ------------
SUB-TOTAL 495,181 521,375
PAPER & PUBLISHING (2%)
McGraw-Hill 2,000 89,379 179,000
PHARMACEUTICALS (13.2%)
Affymetrix* 3,000 104,150 75,000
Bone Care International* 10,000 116,370 110,000
Glaxo Wellcome plc ADR 2,500 55,379 158,750
Immunex Corp* 1,600 106,114 147,400
IMS Health 2,000 131,913 132,750
Johnson & Johnson 2,000 91,871 162,500
Ligand Pharmaceuticals* 6,000 90,709 59,625
Lilly (Eli) 2,000 127,124 179,375
Novo-Nordisk A/S ADR 2,000 111,090 115,500
------- ------------
SUB-TOTAL 934,720 1,140,900
PHOTOGRAPHIC SUPPLIES (2%)
Fuji Photo Film ADR 4,500 138,736 170,438
</TABLE>
November 30, 1998 Report
<PAGE>
AMANA
(Graphics Omitted)
Investments
GROWTH
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value
- ------------------------------------------- ---------------- ------- -------------
<S> <C> <C> <C>
- -
REAL ESTATE (2.5%)
Hutchison Wampoa ADR 2,000 62,091 75,000
Intrawest 9,000 151,959 144,562
------- -------------
SUB-TOTAL 214,050 219,562
RETAIL (7.3%)
Gap 5,250 111,606 386,203
Saks* 4,100 144,554 112,750
West Marine* 12,000 145,004 136,500
------- -------------
SUB-TOTAL 401,164 635,453
STEEL (1%)
AK Steel Holding 4,000 87,392 76,750
TELECOMMUNICATIONS (3.9%)
Leap Wireless International* 5,000 20,433 28,750
Tele Danmark A/S ADR 3,000 76,615 166,313
Telefonica de Espana ADS 1,000 41,081 139,375
------- -------------
SUB-TOTAL 138,129 334,438
TOOLS (1.7%)
Regal-Beloit 6,000 107,448 150,000
TRANSPORTATION (8.1%)
DaimlerChrysler AG 1,306 134,367 119,744
Halter Marine Group* 6,000 80,457 41,250
KLM Royal Dutch Airlines 4,142 155,823 117,011
Southwest Arilines 11,250 132,585 241,875
Trinity Industries 3,000 117,089 116,062
Virgin Express* 8,000 168,782 64,000
------- -------------
SUB-TOTAL 789,103 699,942
TOTAL INVESTMENTS (98%) $ 6,121,704 8,495,949
============= ----------
Other Assets (net of liabilities) (2%) 169,159
-------------
TOTAL NET ASSETS (100%) $8,665,108
==========
<FN>
*Non-Income producing security
</FN>
</TABLE>
November 30, 1998 Report
<PAGE>
Semi-Annual Report
(Graphics Omitted)
GROWTH
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
For November 30, 1998
ASSETS
<S> <C> <C>
Common stocks (cost $6,567,503) $8,495,949 -
Cash 171,673
Dividends receivable 5,103
-----------
Total Assets $8,672,725
----------
LIABILITIES
Payable to affiliate 7,617
-----------
Total liabilities 7,617
----------
NET ASSETS $8,665,108
==========
FUND SHARES OUTSTANDING 1,112,721
ANALYSIS OF NET ASSETS
Paid in capital (unlimited shares authorized,
without par value) $6,869,706
Undistributed net realized gain (loss) on investments (133,044)
Unrealized net appreciation on investments 1,928,446
-----------
Net assets applicable to fund shares outstanding $8,665,108
==========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 7.79
</TABLE>
November 30, 1998
<PAGE>
(Graphics Omitted)
Statement of Operations
GROWTH
<TABLE>
<CAPTION>
For six months ended November 30, 1998
INVESTMENT INCOME
<S> <C> <C>
Dividends (net of foreign taxes of $2,201) $ 28,603 -
Miscellaneous income 135
----------
Gross investment income $ 28,738
EXPENSES
Investment adviser and administration fees 44,076
Shareowner servicing 8,500
Filing and registration fees 7,409
Professional fees 3,180
Printing and postage 2,500
Other expenses 1,960
----------
Total expenses 67,625
----------
Net investment income (38,887)
----------
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales 1,120,214
Less cost of securities sold based on identified cost 1,184,924
----------
Realized net gain (loss) (64,710)
----------
UNREALIZED GAIN ON INVESTMENTS
End of period 1,928,446
Beginning of period 1,838,030
----------
Increase in unrealized gain for the period 90,416
----------
Net realized and unrealized gain on investments - 25,706
----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS - ($13,181)
==========
</TABLE>
November 30, 1998 Report
<PAGE>
Semi-Annual Report
(Graphics Omitted)
GROWTH
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Period ended Year ended
Nov. 30,1998 May 31,1998
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
<S> <C> <C>
Net investment income ($38,887) ($32,121)
Net realized gain on investments (64,710) 156,971
Net increase in unrealized appreciation 90,416 627,980
-------------- -------------
Net increase (decrease) in net assets (13,181) 752,830
-------------- -------------
DIVIDENDS TO SHAREOWNERS FROM:
Net investment income 0 0
Capital gains distributions 0 (161,000)
-------------- -------------
FUND SHARE TRANSACTIONS:
Proceeds from sales of shares 1,264,820 4,765,715
Value of shares issued in
reinvestment of dividends 0 160,607
-------------- -------------
1,264,820 4,926,322
Cost of shares redeemed (2,666,243) (1,362,492)
-------------- -------------
Net increase (decrease) in net assets
from share transactions (1,401,423) 3,563,830
-------------- -------------
Total increase (decrease) in net assets (1,414,604) 4,155,660
NET ASSETS
Beginning of period 10,079,712 5,924,052
-------------- -------------
End of period $ 8,665,108 $ 10,079,712
============== =============
Shares of the fund sold and redeemed
Number of shares sold 191,927 612,017
Number of shares issued in
reinvestment of dividends 0 21,587
-------------- -------------
191,927 633,604
Number of shares redeemed (374,294) (175,906)
-------------- -------------
Net increase (decrease) in
number of shares outstanding (182,367) 457,698
============== =============
</TABLE>
November 30, 1998 Report
<PAGE>
(Graphics Omitted)
Financial Highlights
GROWTH
<TABLE>
<CAPTION>
Selected data per share of outstanding capital stock throughout each period.
<S> <C> <C> <C> <C> <C> <C>
Year Ended May 31
-----------------
Period
------
Ended 2/3/94
------ --------------
Nov. (Inception) to
----- --------------
30,1998 1998 1997 1996 1995 May 31, 1994
------ ----- ----- ----- ----- ------------
NET ASSET VALUE AT BEGINNING OF PERIOD $7.78 $7.07 $6.86 $5.04 $4.69 $5.00
----- ----- ----- ----- ----- -----
Income from investment operations
Net investment income (0.03) (0.03) (0.02) (0.05) (0.04) 0.00
Net gains or losses on securities
(both realized and unrealized) 0.04 0.90 0.32 1.95 0.39 (0.30)
------ ----- ----- ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS 0.01 0.87 0.30 1.90 0.35 (0.30)
Less distributions
Dividends (from net investment income) 0.00 0.00 0.00 0.00 0.00 (0.01)
Distributions (from capital gains) 0.00 0.00 (0.09) (0.08) 0.00 0.00
------- ----- ------ ------ ---- -----
TOTAL DISTRIBUTIONS 0.00 0.00 (0.09) (0.08) 0.00 (0.01)
-------- ----- ------ ------ ---- -----
NET ASSET VALUE AT END OF PERIOD $7.79 $7.94 $7.07 $6.86 $5.04 $4.69
======= ======== ===== ======= ======= ========
TOTAL RETURN 0.13% 12.39% 4.46% 37.20% 7.46% (0.06)
Ratios / Supplemental Data
- ---------------------------
Net assets ($000), end of period $8,665 $10,080 $5,924 $4,151 $1,974 $952
Ratio of gross espenses to ave. net assets 0.73% 1.56% 1.69% 1.94% 2.00% *-0.62%
Ratio of net investment income to ave. net assets -0.42% -0.40% -0.60% -0.79% -0.82% *-0.35%
Portfolio turnover rate 145 25% 25% 22% 38% *6%
<FN>
(*not annualized)
</FN>
</TABLE>
(Graph Omitted)
Amana Growth Fund Calendar Year Percentage Returns
(data points)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Year (x) 1995 1996 1997 1998
Percentage (y) 35 4 18 16
</TABLE>
Note: Highest return for a quarter was +25.2% (quarter ending December 31,
1998)
Lowest return for a quarter was -11.6% (quarter ending September 30,
1998)
November 30, 1998 Report
<PAGE>
Semi-Annual Report
(Graphics Omitted)
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 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. 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.
TRUSTEES AND OFFICERS
Bassam Osman, MD Chairman, Trustee
Nicholas Kaiser, MBA President, Trustee
M. Yaqub Mirza, PhD Treasurer, Indepenednt Trustee
Jamal M. al-Barzinji, PhD Independent Trustee
Iqbal Unus, PhD Independent Trustee
M. Naziruddin Ali Vice President
P. Larner Secretary
T. K. Anderson, MBA Assistant Treasurer
November 30, 1998 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>
