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Amana - Disturbing Information (note from David at the end)

If true, I think this needs to be completely disclosed. Simple fact of the matter is if this information is NOT true, then the author opens himself to serious ridicule and libel. Needless to say that hasn't stopped anyone from writing lies, lies and more lies. However given that an Amana Fund has been profiled on Fund Alarm and now the Mutual Fund Observer, I find it prudent to post this information.

The irony is that the Amana Group claims to invest in a Socially Responsible way according to Islamic Principles. While at the same time if the money they are making is being used to fund despicable causes, then Socially Responsible or not, I don't see how any of us on this board would want to invest in the Amana Funds.

I am excerpting a part of what is there on the link below and folks can decide if they want to continue to read on. At the same time, Mr. Snowball thinks this is inappropriate, he may remove it from the board.

....Sheikh DeLorenzo was a top executive (and continues to serve as a key consultant for) a large investment fund called the Amana Trust, which is interesting on several levels. For one, the Amana Trust was founded by a Muslim Brotherhood figure named Yaqub Mirza, who is the most important U.S.-based operative in the SAAR Network of terrorist financiers.
Mr. Mirza was the incorporator or manager of more than a dozen SAAR Network hedge funds, charities, and financial entities, including Mar-Jac Investments, Mena Investments, Sterling Management Group, and Reston Investments. In addition, Mr. Mirza ran the SAAR Network’s centerpiece, an outfit called the SAAR Foundation, which advertised itself as a charity, but was allegedly an important vehicle for laundering money raised in the United States for jihadi groups....


http://www.deepcapture.com/the-miscreants-global-bust-out-chapter-two-the-money-weapon-and-a-jihad-bigger-than-bin-laden/

Best.

Comments

  • So... I wanted to do some quick research and bat this one down. But this is all a bit murky, I find. One thing that is not murky is that deepcapture.com is a dubious source. (Read their pieces on other topics; read folks' reviews of the site.) However, it does seem to be true that Yaqub Murza both cofounded the International Institute of Islam with Muslim Brotherhood money, and also founded Amana Trust. Following this information to any sort of actionable conclusion requires sifting through the lurid prose of conspiracy theorists, lunatic fringe bloggers and authors in other media with axes to grind and/or bucks to make. That does not mean that there is not some truth about someone in the laundry list above truly deserving the appellation "terrorist financier". It just means that it is hard to get at that truth.

    Just trying to be a little reasonable, I think there must be easier ways to mask the financing of terror than by using a highly rated, visible, and somewhat regulated open-end mutual fund as a cover.

    Anyone on the board actually invest in Amana Trust? What do you know about it? How'd you decide?

    gfb
  • According to Morningstar, Saturna Capital out of Washington State manage this fund. The managers are Nicholas Kaiser (since 1990) and Monem Salam (since 2008).
  • personally, i would never invest in anything dubbed socially responsible or islamic principle or any other gimmick. the purpose of investing is to make money. social responsibility is in the eyes of the beholder. for someone, it is socially responsible to blow up a building with thousands of people in it, for others to invest in green (read "subsidized" industries). we all have our own moral principles and there are variety of charities we can contribute to to match our beliefs. investing should be left out of it.
  • I've seen the Amana funds covered in the press before. The "Islamic principles" angle is not a gimmick. Kaiser was approached by a group of Muslims who asked his help in constructing investment vehicles suited to their beliefs. Thus, the Amana funds do not earn interest, do not invest in certain industries (alcohol, tobacco, etc.). I believe one of the reasons Amana did so well during the recent crash is that they didn't hold financials.

    Anyway, I'm not taking a stand as to whether or not Amana is a front for AQ or Muslim Brotherhood money. Rather, simply trying to point out that from all I read Kaiser & Co. did establish a product in accord with specific client needs (grounded in their religious principles) that was one of the first of its kind.

    FWIW.
  • If you read the article, it claims even Saturna is owned by "questionable" people.
  • That's the point. The angle is "islamic principles" and not "socially responsible". Islam is funny that way. Drinking not allowed, but smoking is allowed. So I differ in my opinion from Shostakovich below. So basically it is "pick your own vice" principles.

    When the term "socially responsible" was coined for the mutual fund industry, I guess one was only looking at gambling, alcohol and whatever else, but terrorism never figured in that list.

    It should be simple to prove who owns Saturna and who owns Amana. There is no point in saying deepcapture.com is a dubious source. If we think like that, fox news is a dubious source. I don't see how ANYONE can make claims like the ones that are being made by deepcapture.com and get away with it. It's not like it is another website like www.theonion.com. If you read the article again, they frequently link to other sites as sources of information. deepcapture.com is certainly not a quack job.
  • Wikipedia has some info on Yaqub Mirza and a link to another wikipedia
    entry on his current employment. Don't know if its reliable but the entry
    indicates that he is no longer associated with Amana. His current
    organization that is with is pretty shady.
  • Sounds like your issue is with Islam and radical theocratic Islamic groups, not a fund which tries to invest in accordance with widely-held Islamic principles.

    If there is a connection between Amana and AQ/MB, that would be deeply unfortunate.

    For the record, I am not a Muslim, but have looked at the Amana Developing/Emerging markets fund because it is a conservative way to play that space, and because Kaiser is not afraid to hold cash. I held off on a purchase for a couple of reasons. It'd be a shame to think that I'd be put on a terrorist watch list just because I bought a particular financial product.
  • edited May 2011
    I don't have any issue with Islam. This is not supposed to be a site for advocating political or religious opinion and I am categorically stating so. And I detest your implication with your comment about me having a problem with Islam. What are we? Fox News?

    I'm simply pointing out - and i will stress only after someone ELSE raised the issue of socially responsible investing - that the TERM definition is quite fickle depending on ones perspective.

    I don't need any religious book or political dogma to tell me funding terrorism is bad. Just like I know it is wrong to sleep with my neighbors wife regardless of whether I have read the bible. That's what I think makes me "human". One shouldn't be making excuses for one's behavior and take responsibility. Unless you are saying we will all be running around raping and killing women if there was no law against it? I have no issues with religion, so please don't bring this into it.

    Maybe someone who owns Amana / Sextant funds on this board can point Nicolas Kaiser to this article and have him draw his own conclusions. People can be duped easily. There is no reason to believe Nicolas Kaiser is a bad man. After all, how many of us go beyond the manager to decide whether to invest in a fund or not ? (actually I do, and hence do not invest with Royce because it is owned by Legg Mason, but I digress).

    A competent manager can return good results for his investors. The point is, will he want to do so if he is convinced the money he is earning his employer is being used for questionable purposes. What happens if Nicolas Kaiser earns M* Manager of Decade award in the future? Will his fund assets not multiply 3 fold? Will this not increase the profits of the companies that run his funds exponentially given the fixed costs of running a fund?

    Again, just as I don't invest in single country funds, I don't want to invest in funds from companies who do insider trading, who fund terrorist causes, who do money laundering, or whatever else does not agree with my sensibilities. This has jack to do with being "socially responsible". Will any of us buy a fund knowing that the manager or owner of the fund company was engaged in dishonest acts? Or are we going to say "I don't care, because I'm only in it to make money"? To that I say there are enough alternatives out there to make money. "Socially Responsible Investing" can be used both ways, to invest in something or not to invest in something. Bullshit shouldnt' enter the equation here.
  • okay, personally I wouldn't trust wikipedia that much. using it as a reference is one thing. it is good for that. but investigative reporting? no.
  • My thoughts are that if we've thought of Amana's possible nefarious connection, don't you think that the government has also thought of it? The Amana Group is high profile enough to warrant being on the governments' radar and therefore already investigated if it were considered necessary to do so.
  • Any suggestions for a substitute for Amana?
  • Any good suggestions for a substitute for Amana? I'm looking for a good Lg Value fund.
  • edited May 2011
    Are you saying the Government knows everything about what's going wrong? This is not about bad Government. Government OF the People, BY the People, FOR the People. More importantly Government MADE UP OF People.

    Madoff was doing what he was under everyone's nose. SEC got complaints about this from PEOPLE. Other PEOPLE in SEC did nothing. This is a matter of public record now.

    I'm now almost regretting posting this link. I thought folks on this board would appreciate getting ALL the facts about a fund beyond the prospectus when deciding to invest in a fund.
  • Err...now you may be jumping the Gun. I presume you own Amana? For whatever reasons you do, there's no need to be hasty and looking for an alternative. Like a good board member, I thought I would make people aware of news that involved Amana from what I consider to be a reliable source.

    When buying a fund, we all do our due diligence. For instance I will not buy a fund in which manager is not heavily invested. Similarly, you can look at the article, do your own research if you wish, and draw appropriate conclusions as to whether it is still the right investment for you.

    I did not not post the article to get people out of Amana funds. I just thought people who own or want to own the funds will benefit from getting all information there is about a fund in making a decision. After all, I think this is what this board is about. Getting more information so that we can all make prudent decisions.

    If you are looking for a good Large Value Fund, we might be going off topic.

    Best.
  • Lynda, just fyi, there are two mostly-U.S. Amana funds, one's large growth, the other large value. If you own or have been looking at Amana Growth, a large value fund isn't a substitute. Amana Income is the value fund.
  • Hi, guys.

    Sorry to have missed the bulk of the discussion. I've got a query out to the folks at Saturna, asking them to look through the discussion and help us understand the facts. I'll follow-up more extensively once I'm back from England and have more consistent accesss.

    All the best, pip pip and cheerio!

    David
  • Hi Lynda. Like VintageFreak says, I wouldn't sell this fund due to this article. Actually I have not read this article, but I get the gist from the dialog in the posts. If you bought the fund because of it's very good performance during the market drop and you were sold on the "non-vice" concept (which is the reason it did well), there is no reason at this point to sell. Innocent until proven guilty so to speak. Be aware though, that the Amana funds dodged the worst when the market tanked because it considers financials one of those vices.

    Personally, I could care less if my fund invests in tobacco, alcohol (I like my beer), financials... if that is where the opportunities to make money are. Financials have not gone up as much as other sectors to date. They will eventually and Amana may lag.

    For the record, I own Yacktman Focus YAFFX and Parnassus Eq Inc PRBLX as my large caps. I'd recommend both. So happens that PRBLX is also labeled a socially conscious fund. I own it because of it's long term record and capital protection aspects - same for Yacktman.
  • The user and all related content has been deleted.
  • Don't be sorry about posting! Besides the comments about the changes in forum format, I have had the sense that folks have been complaining that the tone of postings at MFO have not been "in your face" enough. You piqued our interest, for sure. Also, I'm trying to give deepcapture more of a chance. I had read some critiques of the deepcapture.com obsession with naked short selling, that now strike me as dubious as the articles criticized. I find the breathless tone of the reporting offputting, but I can get over that.

    Keep on doing what you do.

    gfb
  • edited November 2011
    .
  • I owned a little Developing World briefly when it first started, but it was so heavily in cash it barely moved. I sold it after 6mo.
  • Dear friends,

    I've written to the folks at Saturna, who in turn read our discussion and the article. Their general tendency is to ignore conspiracy theorists (Mr. Mitchell qualifies) but they take the FA/MFO board seriously and are talking about how to respond.

    Like them, I read the original piece posted by Vintage Freak. In general, I'd noted

    1. the author (Mark Mitchell) has had some problems, in the past, keeping his facts straight -- there are a fair number of articles pointing to instances of "sloppy journalism"

    2. the site (Deep Capture) appears to be a vehicle for expressing the idiosyncratic worldview of Patrick Bryne, president of Overstock.com. As far as I can tell, the argument is that all bad things (the Great Depression and the Madoff scandal among them) are attributable to the Russian mafia, hedge funds, and/or shady international financiers with ties to terror.

    3, there's no evidence. The references to Amana and Saturna make allegations without evidence. Well, the whole thing does: it's a long, breathless tale of darkness without anything that looks like, well, proof, evidence or documentation.

    4. there's no argument. There's a bunch of claims which, if true, represent a sort of guilt by association. For example, there's the assertion that the Islamic Society of North America controls Saturna. The sum of the argument appears to be the claim that a guy alleged to have a tie with the Society also had a tie with Saturna. There's no evidence that the guy controlled Saturna, that he controlled (or was controlled by) the ISNA, that the ISNA has ever said or done squat in relation to Saturna, that Saturna has ever said or done squat in relation to the ISNA or that any action by Saturna has ever profited anyone but their shareholders.

    I teach about propaganda for a living (indeed, am currently in Oxford to track down the origins of a particular WW1atrocity propaganda report). My preliminary reading of the Deep Capture blog places it pretty much in the mainstream of modern cyber-propaganda. It, like much propaganda, seems to substitute breathless prose driving toward a predetermined conclusion for anything like serious reporting. Folks are certainly entitled to invest their hard-earned funds wherever suits their needs, That said, this blog does not seem to provide any reason to avoid either the Amana or Sextant funds.

    If folks are interested, I'd be willing to make a more formal analysis in my June commentary. I feel free to drop me a note. If I learn more, I'll pass it along.

    David
  • I'm a fan of SRI in principle, but the dearth of quality MF's in this space makes it difficult. I'd be curious for a brief understanding if there is a legitimate connect to the Muslim Brotherhood. If not, let's not waste out time on a possible connection. Very interesting though. Thanks for posing the question VF
  • Thank you Mr. Snowball. We have enough going on in the world without conspiracy theories. Either we will get accurate information or hopefully Saturna/Amana sue deepcapture if they are making up stories. To me this is a reputation damaging article. It's just that I don't think Patrick Bryne is an Alex Jones kind of guy. And I have to think the gent who works for Mr. Bryne should not write nonsense unless he can back it up. One way or the other I hope this gets resolved for all current and future Amana shareholders.

    It is unfortunate for me since I was all set to buy AMDWX but can't pull the trigger any more.
  • What's preventing you from investing in this fund? As David mentioned, the blog doesn't seem to provide any accurate reason to avoid investing with either the Amana or Sextant funds. As David stated, the blog is modern cyber-propaganda.

    I'm not invested in an Amana or Sextant fund, but not for "politically correct" reasons. These funds simply don't fit my investment objectives.
  • Just got back, catching up on stuff... you folks have been having a darned good discussion here. I'm solidly with David re the high probability of propaganda, for whatever reason.

    PopTart, you are showing wisdom beyond your years. Good going, kid!
  • You can't be serious. Funds are not going out of style. Again, I don't let politics or religion dictate my reason to buy a fund or not. I don't think deepcapture.com is a hack site. I want to give Amana/Saturna a chance to respond. And I can find another fund to fit my needs.

    I want Amana/Saturna to sue deepcapture.com. Or I expect deepcapture.com to provide proof of their allegations. Meanwhile I will sleep easy by not investing in AMDWX by investing somewhere else.
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