Assets under management (AUM): $8.18M (in US$ millions) - See other performance data below
General Fund Type: International, Global, Foreign
Specific Sizes or Types of Investments: Global large- and mid-cap equities
Financial Objective: Capital appreciation.
Specific ESG Focus: The Saturna Sustainable Equity Fund seeks to invest in sustainable and responsible issuers. The Funds’ adviser, Saturna Capital, believes that companies proactively managing business risks relating to environmental, social, and governance (ESG) issues make better contributions to the global economy and are more resilient. By using a combination of negative and positive screening, along with financial analysis and an emphasis on low debt, the Funds seek issuers who outperform their peers on a variety of ESG factors. Saturna uses negative screening to exclude companies primarily engaged in activities that the analysts believe present higher ESG risks, including issuers engaged in: • Alcohol • Tobacco • Weapons • Gambling • Pornography • Carbon-Based Fuels
To invest, call: 1-800-728-8762
Mutual Funds Description: Values-Based Global Asset Managers, Saturna Capital Corporation, adviser to the Saturna Sustainable, Amana, Sextant, and Idaho Tax-Exempt Funds, uses years of investment experience to aid investors in navigating today's volatile markets. Founded in 1989 by professionals with extensive experience, Saturna has helped individuals and institutions build wealth, earn income, and preserve capital.
Minimum Account: 10,000
Screening Venue: In-house
Saturna Capital's Research Team
Screening Database Used:
Saturna Capital's proprietary database, in conjunction with external sources which include FactSet, Bloomberg, and CSR Hub.
Saturna Capital’s environmental, social, and governance (ESG) scores provide our assessment of how well a company performs relative to a blend of its industry, sector, and country peers in each ESG category. In order to assess the relevance of the data used to generate our scores, we carefully examine the quantity and quality of reporting for each scoring factor, including how the reporting varies, both in response rates and in the distribution of reported data, by industry, sector, country, and region.
Saturna’s ESG analysts routinely review and assess aggregated data measures to evaluate the relevance of various data sources and factors in contributing to our scoring.
Each ESG category is built up from related subcategories:
Environment: Energy, Climate, Water, Waste, Sustainability
Social: Community, Labor
Governance: Board quality, Corporate policies, Executive compensation
Each of these subcategories, in turn, are based on related factors collected from each company. We separately evaluate companies according to their transparency (i.e., whether they report data on a given factor) and their quality (i.e., how their reporting compares to their peers). Each factor is weighted by our assessment of its importance within its economic sector or, when appropriate, by its importance relative to its country or regional peers.
After scoring each relevant factor for each subcategory, we aggregate the subcategory scores into the relevant E, S, or G category, and score each company within its sector, normalized to a decile (1-10) scale where 1 is the best and 10 is the worst.
Finally, we apply weights to the E, S, and G category totals and again score each company within its sector to determine the overall ESG score (quintile: A, B, C, D, or F).
A portfolio manager may assign or override a score based on available information when a security issuer does not report on these factors or for other reasons, including material ESG events.
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- Climate / Clean Technology: Combination of Positive and Restricted/Exclusionary Strategies - Saturna Sustainable Funds seek carbon efficiency for their portfolios, where tons of carbon per $1 million of revenue is substantially lower than a broad-based peer group.
- Pollution / Toxics: Combination of Positive and Restricted/Exclusionary Strategies - Saturna evaluates an issuer’s waste and emissions as part of the fundamental analysis process; pollution and toxic emissions are weighted more heavily among issuers whose industries produce the greatest environmental impact.
- Other Environmental: Combination of Positive and Restricted/Exclusionary Strategies - Saturna seeks and supports issuers who take resource efficiency seriously by integrating it into their business plan; by potentially reducing vulnerability to resource scarcity issues, Saturna believes these issuers will decrease long term business risk.
- Community Development: Combination of Positive and Restricted/Exclusionary Strategies - Saturna seeks issuers that are positive corporate citizens characterized by having low business risks in the area of community development. Factors such as charitable giving, protection of public health, and land use are evaluated during the fundamental analysis process.
- Diversity & Equal Employment Opportunity: Combination of Positive and Restricted/Exclusionary Strategies - Saturna values diversity and inclusion, and seeks issuers who do the same. Factors such as an issuer’s commitment to equal opportunity regardless of gender, age, ethnicity, religion and sexual orientation are evaluated during the fundamental analysis process.
- Human Rights: Combination of Positive and Restricted/Exclusionary Strategies - Saturna seeks issuers with sound ethics and low business risks relating to human rights. Factors such as child labor, forced or compulsory labor, and nondiscrimination – both on behalf of the issuer and along the issuer’s supply chain – are evaluated during the fundamental analysis process.
- Labor Relations: Combination of Positive and Restricted/Exclusionary Strategies - Saturna is committed to being an excellent employer and seeks issuers of a similar mindset, with low business risks relating to labor relations. Factors such as employee safety policies, fair wage policies, and equal opportunity policies are evaluated during the fundamental analysis process.
- Board Issues: Combination of Positive and Restricted/Exclusionary Strategies - Saturna seeks issuers with particularly strong governance systems. Factors such as board diversity, independence, compliance, and effectiveness are evaluated during the fundamental analysis process, and are believed to contribute to an issuer’s longterm, sustainable viability.
- Executive Pay: Combination of Positive and Restricted/Exclusionary Strategies - Saturna believes that executive pay should be commensurate with executive performance, and places a great emphasis on evaluating an issuer’s financial stability and performance. Saturna reviews executive ownership in the company as part of the evaluation process.
- Alcohol: No Investment - Saturna excludes issuers engaged in this activity.
- Animal Welfare: Combination of Positive and Restricted/Exclusionary Strategies - Saturna carefully considers the ethics and positive and negative impacts of animal welfare issues, such as animal testing in pharmaceutical laboratories, during the fundamental analysis process.
- Defense/Weapons: Combination of Positive and Restricted/Exclusionary Strategies - Saturna excludes investments in firearms, and carefully considers the social value and impacts of other investments in this category.
- Gambling: No Investment - Saturna excludes issuers engaged in this activity.
- Tobacco: No Investment - Saturna excludes issuers engaged in this activity.
- Other/Qualitative: The Fund seeks issuers with: sustainable profits, strong balance sheets, management strength, high quality operations, risk consciousness, long-term focus, low debt, and established businesses.
Year-to-date rate of return: 26.21%
1-year rate of return: 19.04%
3-year rate of return: 13.78%
5-year rate of return: --
10-year rate of return: --
Previous year rate of return: -5.73%
Management fee: 0.65%
Expense ratio: 0.99%
Standard deviation: 13.83%
Benchmark used: S&P Global 1200 | External link (Opens in a new window)
Disclaimer: Please consider an investment's objectives, risks, charges, and expenses carefully before investing. To obtain this and other important information about Saturna Sustainable Equity Fund in a current prospectus or summary prospectus, please visit www.saturna.com or call toll free 1-800-728-8762. Please read the prospectus or summary prospectus carefully before investing. Investing involves risk, including possible loss of principal. Investing in foreign securities involves risks not typically associated directly with investing in US securities. These risks include currency and market fluctuations, and political or social instability. The risks of foreign investing are generally magnified in the smaller and more volatile securities markets of the developing world. The Saturna Sustainable Equity Fund limits the securities it purchases to those consistent with sustainable principles. This limits opportunities and may affect performance. The Fund began operations on March 27, 2015. Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. Standardized returns current to the most recent month-end can be obtained by visiting www.saturna.com or by calling toll free 1-800-728-8762. The Saturna Sustainable Equity Fund is distributed by Saturna Brokerage Services, Inc., member FINRA/SIPC and a wholly-owned subsidiary of Saturna Capital Corporation, investment adviser to the Fund. Saturna Brokerage Services and US SIF are not affiliated.