Saturna Capital Retirement Plans
The Road To Retirement Starts Here
Table of Contents:
“Easy as 1 - 2 - 3.”
Welcome to Saturna Capital ................................................................. 3
The Saturna Advantage......................................................................... 4
General Guidelines & Eligibility ............................................................ 5
Why Should You Save in a 401(k)? ........................................................ 6
Long Term Investing .............................................................................. 8
Asset Allocation: Risk vs. Reward.......................................................... 9
Your Plan’s Dedicated Web Site .......................................................... 10
Saturna - Facts & History ..................................................................... 11
For help call Lisa Ray, x203 For help call Matt Ward, x502
401(k) Plans Specialist Retirement Plans Specialist
2 Saturna Capital | 800/SATURNA | www.saturna.com
Welcome to Saturna Capital
Your company’s 401(k) plan through Saturna Capital Corporation is a comprehensive and
easy way to help you save for your retirement. With the investment flexibility you need
to make decisions about your future, enrolling in the 401(k) plan is the first step toward
securing your financial well-being in retirement. Take advantage of Saturna’s track record in
the investment business and enroll in your company’s 401(k) plan.
What is a 401(k)?
A 401(k) plan is an employer sponsored retirement plan. As a participant in the Plan, you
may elect to defer part of your salary and direct that money into your 401(k) account.
Because these contributions are made before certain taxes are withheld, they actually
reduce your current taxable income. Any earnings within the account enjoy tax-deferred
growth until withdrawn.
If your company’s Plan allows Roth 401(k) contributions, you may also elect to defer part of
your salary into a Roth account. These contributions do not reduce your taxable income,
however qualified distributions (including earnings) are tax-free.
How do I enroll in my Employer’s 401(k) Plan?
Complete these 5 easy steps to enroll:
1. Review the Summary Plan Description.
Be sure you understand how the Plan works and your Plan’s options.
2. Complete and sign the Wage Deferral Agreement.
3. Complete and sign the Investment Election Form.
Be sure to read the Prospectus of each Fund selected. The Sextant Core Fund will be
the default option if no selection is made.
4. Complete and sign the Beneficiary Designation Form.
5. Return all completed documents to your company’s Plan Administrator.
When am I eligible to enroll in my Employer’s 401(k) Plan?
Check your plan’s Summary Plan Document (“SPD”) for eligibility requirements. If you
did not receive a SPD, check with your plan’s administrator (typically a person from your
company designated to administer the plan).
How much can I contribute to my 401(k) Account?
• Employee contributions – Eligible employees can elect to defer up to 100% of their
compensation up to a maximum of $16,500 for 2010. Employees age 50 and older can
make additional catch-up contributions up to $5,500 for 2010.
• Employer contributions – Employers may contribute, on behalf of each eligible
employee, up to 25% of their compensation or $49,000, whichever is less.
• Total contributions – Total (aggregate) contributions for each employee cannot exceed
$49,000 plus catch-up contributions.
The Saturna Advantage
Enroll in your employer’s 401(k) plan with Saturna Capital and take
“Your plan A Wide Range of Investment Choices
should be worth We offer a selection of no-load mutual funds with a variety of
every penny investment objectives. By investing in more than one fund, you can
tailor your 401(k) account to reflect your personal risk and return
you invest.” objectives. In addition, you can open a self-directed discount brokerage
account and buy common stocks, bonds, unaffiliated mutual funds and
other securities of your choosing.
At Saturna Capital, we help make investing for retirement easy. Plan
information is available online 24/7. You may also call Saturna’s toll
free phone number (800-SATURNA) during regular business hours for
inquiries or transactions.
Self-Directed Brokerage Accounts
If your plan allows, you may purchase unaffiliated mutual funds, stocks,
bonds, or other securities as part of a Self-Directed Brokerage 401(k)
option. Self-Directed Brokerage enables you to purchase and sell a
variety of securities for your 401(k).
Trades in Self-Directed Brokerage Accounts are subject to the
commission schedule detailed in the “Guide to Saturna Brokerage
Services” brochure. All applicable commissions are paid to Saturna
Brokerage Services, a wholly-owned subsidiary of Saturna Capital.
Depending on each employee’s investment choices, Saturna Brokerage
Services may also receive sales charges (loads) and/or 12b-1 fees from
non-affiliated mutual funds and Fidelity money market funds.
For more details about Self-Directed Saturna
Brokerage accounts, please refer to the
“Guide to Saturna Brokerage Services”
For help call x101
Brokerage Operations Manager
Employee (Participant) Fees
Account maintenance None or 0.25% of total assets†
Affiliated mutual fund trading None††
Mutual fund expenses See next page
Loan (if any) annual $60
Plan departure $60
At Employer’s discretion, 0.25% of total year-end assets is charged to either the
Employer or the Plan. If charged to the Plan, fees are allocated to individual Employee
Shares of Saturna’s affiliated mutual funds held less than 90 calendar days are subject to
a 2% redemption fee.
4 Saturna Capital | 800/SATURNA | www.saturna.com
Mutual Fund Expenses
The following tables describe the fees and expenses mutual fund shareowners may pay. There are no shareowner fees
(fees paid directly from an investment)*. The Funds impose no sales charge (load) on purchases or reinvested dividends,
or any deferred sales charge (load) upon redemption. There are no exchange fees or account fees. Investments in
mutual funds are subject to ongoing expenses. Saturna endeavors to keep these fees low. We encourage you to
compare the following fees with similar fees of other no-load mutual funds:
Shareowner Fees (fees paid directly from your investment)
All Saturna Mutual Funds
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price): 0%
Maximum Deferred Sales Charge (Load): 0%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends/Distributions: 0%
Early Redemption Fee (applied to shares held less than 90 calendar days1): 2%
Exchange Fee (between Saturna’s affiliated funds): 0%
Maximum Account Fee: 0%
Annual Fund Operating Expenses (expenses deducted from Fund Assets)
Amana Amana Amana Fidelity Fidelity Prime
Amana | Fidelity Mutual Funds Growth1 Income1 Developing World1 Treasury Fund2 Fund2
Management Fees 0.92%3 0.94%3 0.95%3 0.25% 0.25%
Distribution (12b-1) Fees 0.25%4
0.25%4 0.25% 0.25%
Other Expenses 0.14% 0.14% 0.14% 0.25% 0.27%
Total Annual Fund Operating Expenses 1.31% 1.33% 1.34% 0.75% 0.77%
Sextant Mutual Funds Growth5 International5 Core5 Bond5 Bond Income5
Management Fees 0.74%3 0.69%3 0.86%3 0.73%3 0.74%3
Distribution (12b-1) Fees 0.25%4
0.25%4 0.25%4 0.25%4 0.25%4
Other Expenses 0.35% 0.20% 0.67% 0.51% 0.71%
Total Annual Fund Operating Expenses 1.34% 1.14% 1.78% 1.49% 1.70%
Less Fee Waiver/Expense Reimbursement (0.00)% (0.00)% (0.00)% (0.74)% (0.81)%
Net Annual Operating Expenses 1.34% 1.14% 1.78% 0.75% 6
As of 9/28/2009 (for the fiscal year ending May 31, 2009). 2As of 12/30/2009 (for the fiscal year ending October 31, 2009).3Paid to
Saturna Capital Corporation. 4Paid to Saturna Brokerage Services, Inc. 5As of 3/30/2010 (for the fiscal year ending November 30,
2009). 6Saturna Capital has voluntarily capped expenses of the Short-Term Bond Fund at 0.75% and expenses of the Bond Income
Fund at 0.90% through 3/31/2011. Management fees for both bond funds are contractually waived when assets are less than $2
Saturna no-load mutual funds and Fidelity money-market mutual funds are distributed by Saturna Brokerage
Services, Inc., a wholly-owned subsidiary of Saturna Capital. Please consider an investment’s objectives, risks,
expenses and charges carefully before investing. To obtain prospectuses that contain this and other important
information about these mutual funds, please call 1-800-SATURNA or visit www.saturna.com. Please read the
prospectuses carefully before investing.
Why Should You Save in a 401(k)?
The reasons to save for retirement are as varied and plentiful as there
are people. Social security may not be enough to cover your expenses.
You could potentially lower your current income tax. You might need to
“We don’t purchase your own health care coverage after retirement. You may need
follow trends, more money than you think in retirement.
Most financial planners estimate that you will need 70-80% of your
current income to maintain your current lifestyle in retirement. Social
Security benefits and other sources of income frequently do not provide
this level of retirement income. The rest must come from personal
savings and investments, such as an employer-sponsored retirement
The fact is, no one knows for certain how much any individual will need
because every life is different. Those estimates are based on average
life expectancies, and you may live longer or have increased expenses
Starting to save sooner rather than later will help put the power of
compounding at your service. Compounding is the process in which
any returns are added to your investment and receive earnings too.
Earnings on earnings like this increase the value of your investment
faster than what would happen if you did not reinvest. For example, if
at 35 years old you begin contributing $400 a month and retired at age
65, assuming a 5% return on investment, your money would grow to
more than $300,000:
This hypothetical example is for demonstration purposes only and does not
represent the past or future performance of any specific investment. This
example does not account for applicable fees, expenses or taxes. Withdrawals
from a 401(k) are generally taxable in the year of withdrawal and my be subject
to a 10 percent penalty if taken prior to age 59½.
6 Saturna Capital | 800/SATURNA | www.saturna.com
Saving via Contributions to a 401(k) Plan Can Help Lower Your Tax Liability
Your employer’s 401(k) plan allows you to save for retirement while providing you with a tax
break. Your contributions to a 401(k) plan are deducted directly from your paycheck before you
pay tax on your income. That means your current taxable income is reduced and you pay less
tax. Plus, any earnings on your contributions are tax-deferred as well. That’s how participating
in your employer’s 401(k) plan puts more money in your pocket than if you saved outside the
Based on saving 5% of a $30,000 per year salary Contributing to the Plan: Saving outside the Plan:
with a biweekly pay period (26 times per year)
Biweekly paycheck $1,154 $1,154
Less 5% of biweekly pay contributed to plan ($58) N/A
Taxable income $1,096 $1,154
Less federal income tax (assuming 15%) ($164) ($173)
Take-home pay $932 $981
5% of biweekly pay saved outside the Plan N/A ($58)
Money left in pocket $932 $923
Difference +$9 ($9)
Over one year +$234 ($234)
This hypothetical example assumes a biweekly savings of $58 (or 5% of pre-tax pay) equal to $1,508 per
year and a federal income tax rate of 15%. This example is for illustrative purposes only and is not intended
to be financial advice or a primary basis upon which to make any investment decisions. This example does
not imply or assume the performance of any specific investment vehicle or security. Pre-tax contributions
are subject to limits set by Internal Revenue code. Taxes are generally due upon withdrawal and early
withdrawal penalties may apply if taken before age 59½. Saturna does not offer tax-advice. Investment
advice is offered only under specific contracts - see our “Investment Counsel” brochure for details.
A Few Words About Risk
The value of mutual fund shares rises and falls as the value of the securities in which a fund
invests goes up and down. Only consider investing in a fund if you are willing to accept the
risk that you may lose money. Fund share prices, yields and total returns will change with the
fluctuations in the securities markets as well as the fortunes of the industries and companies in
which a fund invests.
The Amana Funds limit the securities they purchase to those consistent with Islamic principles
which limits opportunities and may increase risk.
Growth funds may invest in smaller companies, which involve higher investment risks in that
they often have limited product lines, markets and resources, or their securities may trade less
frequently and have greater price fluctuation than those of larger companies. Growth stocks,
which can be priced on future expectations rather than current results, may decline substantially
when expectations are not met or general market conditions weaken.
International investing involves additional risks not typically associated with investing in U.S.
securities such as currency exchange rates, less public information about securities, less
government market supervision and lack of uniform financial, social and political standards.
The risks inherent in the bond Funds depend primarily on the terms and quality of obligations
in their portfolios, as well as on bond market conditions. When interest rates rise, bond prices
fall. When interest rates fall, bond prices go up. Bonds with longer maturities are usually more
sensitive to interest rate changes than those with shorter maturities. These Funds also entail
credit risk, which is the possibility that a bond issuer will not be able to pay interest or principal
when it is due.
Long Term Investing
Saving for retirement should be at the top of your priority list, if it’s
not already. Starting sooner rather than later has tremendous benefits
from compounding (as noted on page 6) to dollar cost averaging. It is
“At Saturna, extremely important to have a long term outlook when investing in a
we believe in 401(k).
investment Stocks Go Up And Down, Our Values Don’t
dollars work Investing in the stock market can be volatile and carries risk, but over
the long term, stocks have consistently outperformed most other
hard for you.” investment choices - corporate bonds, municipal bonds, even U.S.
Government issued treasury bonds. With that said, day to day volatility
in the stock market can make anyone uneasy. The way to benefit from a
general upward trend in any market is to utilize a long term approach.
In making investments, Saturna Capital’s portfolio managers are value-
oriented, seeking companies that represent high quality operations,
with large free cash flows, sustainable growth rates, increasing
dividends and low price volatility.
What that means for you as a participant in your company’s 401(k)
plan is the ability to take advantage of a solid track record spanning
decades. Saturna’s portfolio management team has more than 60 years
combined experience in the financial industries. Your company’s 401(k)
plan puts that power and expertise at your fingertips.
Set Goals - Then Stick To Them
Financial advisers shout it from the hills - Social Security will not be
enough to cover all your retirement expenses. Saturna offers calculators
on our website that can help you determine how much of your income
you’ll need to save to meet that 70-80% of pre-retirement income you
will need for retirement. Once you determine the amount you’ll need, it
is imperative to keep saving. Salary deferrals make it easy.
Save It, Don’t Spend It
It’s crucial to keep the money in the plan in order to take advantage
of the long term growth. Investments in a Regular 401(k) grow tax-
deferred and carry stiff penalties for withdrawing early. Your plan may
allow loans or hardship withdrawals, but you should bear in mind the
tax consequences and that money not invested in the plan can’t take
advantage of the potential growth.
8 Saturna Capital | 800/SATURNA | www.saturna.com
Asset Allocation: Risk Versus Reward
Asset Allocation: What Is It?
There are many ways to invest - stocks, bonds, money market funds, options, real estate, etc.
and each has its own unique risk and reward characteristics. The way your money is spread
between types of investments is called “asset allocation.” The more types of securities, or
classes of assets, you own, the more diversified you are. A mutual fund allows you to “own”
more classes of assets than you might be able to purchase on your own. For example, a
mutual fund’s portfolio may consist of stocks (or “equities”), bonds (or “debt” securities) or a
combination of the two (a “balanced” portfolio).
The following chart illustrates a spectrum of risk versus reward for the various classes of assets.
Saturna’s Range of Mutual Fund Choices
International consists of non-U.S. companies and may entail special risks not typically associated with
investing in U.S.-domiciled companies such as currency fluctuations and political risks.
Investing in smaller or less seasoned companies may involve higher risks in that their securities may trade
less frequently and have greater price fluctuation than those of larger companies. These stocks, which can
be priced on future expectations rather than current results, may decline substantially when expectations
are not met or general market conditions weaken.
Value stocks are typically expected to have greater price stability than Large, Mid or Small-Cap Growth
stocks and Saturna endeavors to select dividend paying stocks for its portfolios focusing on income-
Sample Allocation Styles
The model portfolio samples below are meant to illustrate some different approaches to
choosing an investment allocation. The more conservative your allocation, the less risk you
assume, but with less possibility of great returns. Consequently, the more aggressive you are
in your investment selection, the higher the potential for substantial returns - with an increased
risk that you may lose money. These examples are illustrative only and are not meant to
be investment advice or as a basis for making investment decisions. You should make your
investment selections based upon your own tolerance for risk and your own unique situation.
Our website features several calculators to help you determine which approach is best for you.
Conservative Moderate Aggressive
International Equity 10% International Equity 20% International Equity 20%
Domestic Equity 40% Domestic Equity 50% Domestic Equity 60%
Fixed Income 30% Fixed Income 20% Fixed Income 10%
Money Market 20% Money Market 10% Money Market 10%
Your Plan’s Dedicated Website
The Saturna Capital web platform allows you the flexibility and control
needed to guide you to retirement. You can access your account online
investment • View account balances with vesting and detailed transaction history
• View and/or change investment elections by funding source
management.” • View quarterly statements
• Download account maintenance, loan request (if allowed by Plan)
and distribution forms
• Access retirement planning calculators and educational material
• Change personal data (including contact info, logins and passwords)
View account balances and detailed transaction history:
Retirement planning calculators and educational materials:
10 Saturna Capital | 800/SATURNA | www.saturna.com
Saturna − Facts & History
Saturna Capital Corporation
Saturna Capital Corporation is a premier national, independent investment firm based on six
• Strong investment results
• Quality personal service
• Uncompromising loyalty to clients
• Advanced technology
• Financial strength
• Low fees and expenses
Owned by investment professionals, predominately Mr. Nicholas Kaiser and his family, Saturna’s
broad experience distinguishes it in the investment business. Each employee is committed to
creating and maintaining a unique firm, where client interests always come first.
With our main office located in Bellingham, Washington, between the Pacific Northwest’s major
cities, Seattle and Vancouver, B.C. Saturna serves clients across the U.S.
Saturna Capital manages more than $2.5 Billion in nine no-load mutual funds, plus private
investment management accounts.
Saturna Brokerage Services, Inc.
Saturna Brokerage Services is a discount securities brokerage founded in 1986. SBS serves both
knowledgeable investors and professionally managed private accounts. It is limited to executing
customers’ buy and sell orders at a simple, low commission. SBS is a wholly-owned subsidiary
of Saturna Capital Corporation. All Saturna Brokerage employees are salaried employees of
Saturna Capital, and receive no commissions.
Saturna no-load mutual funds and Fidelity money-market mutual
funds are distributed by Saturna Brokerage Services, Inc., a
wholly-owned subsidiary of Saturna Capital. Please consider an
investment’s objectives, risks, expenses and charges carefully
before investing. To obtain prospectuses that contain this and
other information about Saturna’s no-load mutual funds, please
call 1-800-SATURNA or visit www.saturna.com. Please read the
prospectuses carefully before investing.
1300 N. State Street
Bellingham, WA 98225-4730
For automated assistance, including mutual fund prices: