Expense Ratio Reporting

In evaluating HSA custodians, I was looking at this page:

http://www.saturna.com/stbfx.htm

For that fund, the expense ratio is described as:

Expense Ratio as of 5/31/2005 0.30%

When I called them, the person I talked to said:

"No, that's the expense ratio for six months. For one year, it would be double that."

That doesn't sound right to me. Can they really report an expense ratio that isn't annualized?

[Nords]

Quote:

Originally Posted by TromboneAl In evaluating HSA custodians, I was looking at this page: http://www.saturna.com/stbfx.htm For that fund, the expense ratio is described as: * Expense Ratio as of 5/31/2005 0.30% When I called them, the person I talked to said: "No, that's the expense ratio for six months.* For one year, it would be double that." That doesn't sound right to me.* Can they really report an expense ratio that isn't annualized?

Well, they do provide the dates.* Maybe they figure that takes care of "caveat emptor."

Although when I count on my fingers it seems that period is only five months.* So doubling it still falls short of 0.72%.*

Hmmm... borderline ethics and bad math.* Why do these people deserve to influence your healthcare experience?

They don't really give the dates, they just say "as of 5/31". Turns out their fiscal year starts at 12/1. No mention of that; no way to know for what period that figure is. The prospectus showed the true expense ratio: about 1.20 when you add things up.

I think I'll skip this company.

Also, check out the description of another one of their funds:

http://www.saturna.com/amanafunds/amanxper.htm

Objective
The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective.

That seems weird!

[. . . Yrs to Go]

Quote:

Originally Posted by TromboneAl Also, check out the description of another one of their funds: http://www.saturna.com/amanafunds/amanxper.htm Objective The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective. That seems weird!

From what I understand, Islamists don't believe in charging or paying interest. I wonder where the income comes from?

[MJ]

Quote:

Originally Posted by . . . Yrs to Go From what I understand, Islamists don't believe in charging or paying interest.

perhaps, it goes to Islamic charities and you get their good will and thanks, in other words you get "nada".

[yakers]

AFAIK Islamic "banking" does not want to charge or collect interest from loans. They would very much be party to equity type investments. They can get to about the same place as a western bank in the corporate world but would not do a conventional loan to individuals.

[MasterBlaster]

Islamic Banks do make loans to individuals.

They don't charge "interest" to individuals but instead add a hefty "commission" to the loan balance that gets paid off over time. There are some subtle differences but that commission in effect looks, feels, and smells an awful lot like interest to the borrower.

[justin]

Quote:

Originally Posted by TromboneAl Also, check out the description of another one of their funds: http://www.saturna.com/amanafunds/amanxper.htm Objective The objectives of the Income Fund are current income and preservation of capital, consistent with Islamic principles; current income is its primary objective. That seems weird!

You can save for the hajj (Islamic pilgrimage) through this company too. I wonder if I give them some money, can I stop facing toward Mecca and praying 6 times a day?