Funds Group: Amana Funds
Fund Management Company: Saturna Capital Corporation
Funds Affected: Amanda Developing World Fund, Amana Growth Fund, Amana Income Fund
Principal Sustainable Investment Strategy: Religious/Ethical (Islamic Principles), ESG Integration, Exclusions
Investment decisions are made in accordance with Islamic principles. Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are liquor, wine, casinos, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations.
The fund does not make any investments that pay interest. In accordance with Islamic principles, the funds shall not purchase conventional bonds, debentures, or other interest-paying obligations of indebtedness. Islamic principles discourage speculation, and the funds tend to hold investments for several years.
The fund seeks companies demonstrating both Islamic and sustainable characteristics. The fund’s adviser considers issuers with sustainable characteristics to be those issuers that are generally larger, more established, consistently profitable, and financially strong, and with robust policies in the areas of the environment, social responsibility, and corporate governance (“ESG”). The fund’s adviser uses internally developed rating systems to identify issuers that it believes demonstrate Islamic and sustainable characteristics.