| Sextant

**Mutual Funds** | (graphic omitted) |
|---------------------------|-------------------|

 

Fellow Shareowners:  The events of 2001 include the September 11 terrorist attacks, the Afghanistan  war, recession, a sharp bear market for stocks, and spectacular corporatedemises.  In addition to dealing with loss of life, property, livelihood, and peace of  mind in the wake of these events, many investors endured steep equitydeclines.    Bonds again made gains. The Federal Reserve cut short-term interest rates 11  times to their lowest levels in 40 years, boosting bond prices. Increaseddemand  for bonds from shell-shocked equity investors and the U.S. Treasury’sannouncement  that it would stop issuing 30-year bonds also helped.  All four Sextant funds bettered their Morningstar peer group averages,evidence  of Saturna Capital’s investment management abilities. Three funds(Sextant  International, Sextant Growth and Sextant Bond Income) ranked near the top of  their Morningstar peer groups.  The no-load Sextant Funds are designed to address a broad spectrum ofinvestment  needs. All stress low operating expenses and employ a "fulcrum"advisory  fee structure that rewards or penalizes Saturna Capital for investmentresults.  For the fiscal year ended November 30, 2001, comparative total returns andpercentile  category rankings (1 is best) are:
Sextant FundTotal Returnvs. MorningstarTotal Return12-mo. Rank (group size)*Short-Term Bond8.67%Short-Term Bonds8.64%63 (211)Bond Income12.48%Long-Term Bonds12.39%17 (91)Growth-9.57%Large Growth-9.65%6 (962)International-14.80%Foreign Stock-15.02%20 (776)
For the fiscal year, total assets in the four funds declined    2.7%. Further information on each Fund is found in the following sections    of this report. Our portfolio managers welcome your comments andsuggestions.    The entire staff works to minimize operating expenses, which are well below    industry standards. In the footnotes, you will notice another unusualfeature    of the Sextant funds: on average, 24% of each Sextant Fund is owned by the    trustees, officers, and their immediate families. We invite you to invest    your money with ours. 

Respectfully,

**Nicholas Kaiser,*******President*****Phelps McIlvaine,*Vice President***(Manager, Sextant Growth;        Sextant International)(Manager, Sextant Bond Income;        Sextant Short-Term Bond)
 *The 12-month Rank shows how each Fund ranks (from 1 best    to 100 worst) in its Morningstar peer category for the year ended November    30, 2001 - please see next page for more performance information.

January 4, 2002
*November 30, 2001        Annual Report* **
*Additional Performance Information*
Average Annual Total Returns (as of12/31/2001)1 year5 years10 yearsSextant Growth Fund-11.99%13.92%9.99%^Sextant International Fund-14.77%6.55%8.12%*Sextant Short-Term Bond Fund7.57%6.00%5.71%*Sextant Bond Income Fund9.41%7.18%5.56%^**Performance data quoted in this report represents pastperformance        and is no guarantee of future performance. The investment return andprincipal        value of investments in the Funds fluctuate daily, and an investor'sshares        when redeemed may be worth more or less than the original cost.Morningstar,        Inc. is an independent fund performance monitor. Rankings are determined        monthly from total returns by Morningstar, by category as determined by        Morningstar. The average total return for a category is determined by        Saturna Capital, utilizing the Morningstar database. Results are shown        for twelve months because of the Sextant Funds performance fee advisory        structure.
*since inception, 9/28/1995 

**since inception, 3/1/1993

 ^fund changed investment objectives & policies on 9/28/1995;results            prior to that date may not be meaningful

**REPORT OF INDEPENDENTCERTIFIED            PUBLIC ACCOUNTANTS**

            To the Shareholders and Board of Trustees            Saturna Investment Trust            We have audited the accompanying statement of assets and liabilities            of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund,Sextant            Growth Fund and Sextant International Fund, each a series of theSaturna            Investment Trust, including the schedules of investments as ofNovember            30, 2001, and the related statements of operations for the year then            ended, and the changes in net assets for each of the two years then            ended, and the financial highlights for each of the five years then            ended. These financial statements and financial highlights are the            responsibility of the Trust’s management. Our responsibility            is to express an opinion on these financial statements and financial            highlights based on our audits.             We conducted our audits in accordance with auditing standardsgenerally            accepted in the United States of America. Those standards require            that we plan and perform the audit to obtain reasonable assurance            about whether the financial statements and financial highlights are            free of material misstatement. An audit includes examining, on atest            basis, evidence supporting the amounts and disclosures in thefinancial            statements. Our procedures included confirmation of securities owned            as of November 30, 2001, by correspondence with the custodian. Our            audit also includes assessing the accounting principles used andsignificant            estimates made by management, as well as evaluating the overallfinancial            statement presentation. We believe that our audits provide areasonable            basis for our opinion.             In our opinion the financial statements and financial highlightsreferred            to above present fairly, in all material respects, the financialposition            of Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant            Growth Fund, and Sextant International Fund, as of November 30,2001,            the results of their operations for the year then ended, and thechanges            in their net assets for each of the two years then ended and their            financial highlights for each of the five years in the period then            ended, in conformity with accounting principles generally accepted            in the United States of America.

TAIT, WELLER &BAKER

            Philadelphia, Pennsylvania            December 13, 2001
*2* *November 30,          2001 Annual Report*(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value** ***Aerospace - Aircraft (3.5%)***   AMcDonnell Douglas /Boeing Capital9.25% 4/1/2002$75,000 $76,088 ***Auto/Truck Manufacturing (4.3%)***   A-Daimler Crysler Corporation6.90% 9/1/200490,000 93,573 ***Banking (8.3%)***   A+Australia & New Zealand Bank6.25% 2/1/200485,000 88,298ABankers Trust (DB) sub notes8.25% 5/1/200585,00093,653 SUB-TOTAL 170,000 181,951 ***Broadcasting (2.2%)***   AWalt Disney Company8.00% 1/26/201550,00050,000 ***Building Products (3.5%)***   ALowe's Companies7.50% 12/15/200570,00076,097 ***Chemicals (3.1%)***   A-Praxair6.15% 4/15/200365,000 66,905 ***Computer (7.1%)***   AA-Hewlett Packard Company7.15% 6/15/200570,00073,654BBB+Sun Microsystems7.35% 8/15/200480,000 82,632 SUB-TOTAL 150,000156,286 ***Cosmetics & Toiletries (3.5%)***   BBBDial Corporation6.625% 6/15/200375,000 77,317 ***Electric Utilities (4.6%)***   AA-Florida Power & Light6.875% 12/1/200595,00099,854 ***Finance & Insurance (12.8%)***   AFord Motor Credit 6.875% 2/1/201690,00091,998A-Lincoln National Insurance7.25% 5/15/2005100,000105,320A-Washington Mutual Financial 8.25% 6/15/200575,00081,788 SUB-TOTAL 265,000 279,106 ***Food (2.3%)***   ACoca Cola Enterprises7.875% 2/1/200250,000 50,095 ***Oil & Gas (10.4%)***   AA+Amoco Canada7.25% 12/1/200270,000 72,373A-Columbia Energy Group6.61% 11/28/200250,000 51,090BBB+Union Oil of California7.20% 5/15/2005100,000 104,750 SUB-TOTAL 220,000 228,213 ***Machinery (8.4%)***   ADeere6.55% 7/15/200490,000 94,284AEaton 6.95% 11/15/200485,00089,505 SUB-TOTAL 175,000 183,789 ***Medical - Health Maintenance Org.(7.3%)***   A-American Home Products7.90% 2/15/200575,000 80,947ACardinal Health 6.50% 2/15/200475,000 78,525 SUB-TOTAL 150,000 159,472 ***Retailing (2.4%)***   BBBSafeway6.05% 11/15/200350,000 51,470 ***Telecommunications (4.6%)***   BBB+Sprint Capital5.875% 5/1/2004100,000 100,940 ***Transportation - Air Freight (2.5%)***   BBBFederal Express9.875% 4/1/200255,000 55,682 ***US Government (3.9%)***   AAAUS Treasury Note6.00% 8/15/200480,000 85,588      **Total Investments (94.7%)**(Cost = $1,996,573)$1,985,0002,072,426 Other Assets (net of liabilities) (5.3%)  116,435 **Total Net Assets (100%)**  $2,188,861 **Ratings are the lesser        of S&P or Moody's (unaudited)*   
 
*November 30, 2001        Annual Report* *3*(Graphic        Omitted)**FINANCIALHIGHLIGHTS** 
**SEXTANTSHORT-TERM          BOND FUND***Selected data per share of capital stock outstanding        throughout the year***Year ended November 30,**  **2001****2000****1999****1998****1997****Net asset value at beginning of year** **$4.95****$4.92****$5.04****$4.99****$5.00** *Income from investment operations*      Net investment income 0.26 0.27  0.26  0.27  0.27  Net gains or losses on securities (both realized andunrealized) 0.14 0.03  (0.12) 0.05  (0.01)**Total from investment operations**  0.40  0.30  0.14  0.32  0.26  *Less distributions*      Dividends (from net investment income) (0.25) (0.27) (0.26) (0.27) (0.27) Distributions (from capital gains)-----Total distributions  (0.25) (0.27) (0.26) (0.27) (0.27)**Net asset value at end of year** **$5.10****$4.95****$4.92****$5.04****$4.99****Total Return** 8.37%6.20%2.88%6.67%5.45%       Ratios / Supplemental Data      Net assets ($000), end of year $2,189$2,555 $1,795 $1,908 $2,508 Ratio of expenses to average net assets 0.51%0.60%0.47%0.48%0.60%Ratio of net investment income to average net assets 5.45%5.40%5.22%5.57%5.58%**Portfolio turnover rate********28%****12%****21%****71%****47%** For the above years, all or a portion        of the operating expenses were waived. If costs had not been waived, the        resulting increase to the ratio of expenses to average monthly netassets        would be .43%, .41%, .57%, .44% and .40%, respectively.
 

**STATEMENT OFASSETS          AND LIABILITIES**
*****As of November 30, 2001*    **Assets**     Investments (Cost $1,996,573)  $2,072,426  Cash  80,573  Interest Receivable  36,629  Receivable from Adviser 1,868   Total Assets  $2,191,496     **Liabilities**     Other Liabilities 2,635   Total Liabilities 2,635     **Net Assets**   $2,188,861     **Fund Shares Outstanding**    429,083     **Analysis of Net Assets**     Paid in Capital (unlimited shares authorized, without par        value)  2,146,836  Undistributed net investment income 1,485  Accumlated net realized loss on investments  (35,313)  Unrealized net appreciation 75,853   Net Assets applicable to Fund shares outstanding $2,188,861     **Net Asset Value, Offering and Redemption price pershare**  **$5.10**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*4* *November 30,          2001 Annual Report***SEXTANTSHORT-TERM        BOND FUND** 
**STATEMENT OFOPERATIONS**(Graphic          Omitted)****   ***For the year ended November 30, 2001*****Investment Income**     Interest income $139,610  Amortization of bond premium (12,882)  Miscellaneous Income 600  Accretion 335   Gross Investment Income $127,663     **Expenses**     Investment advisor and administration fee 10,967  Professional fees 2,962  Custodian fees 2,118   Meetings 1,167  Insurance fees 975  Filing and Registration fees 884  Printing and postage 803  Miscellaneous expenses 381  Total gross expenses 20,257  Less: Advisor fees waived (7,135)  Less: Custodian fees waived (2,118)  Net expenses  11,004  Net Investment income 116,659     **Net realized loss on investments**     Proceeds from sales 987,863  Less: cost of securities sold based on identifiedcost 1,002,626   Realized net loss (14,763)     **Unrealized gain on investments**     End of year 75,853  Beginning of year (5,081)   Increase in unrealized gain for the year 80,934  Net realized and unrealized gain on investments 66,171     **Net increase in net assets resulting fromoperations**  **$182,830**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*November 30, 2001        Annual Report* *5*****(Graphic        Omitted) **STATEMENT OF        CHANGES IN NET ASSETS** 
**SEXTANTSHORT-TERM          BOND FUND******  **Year ended****Year ended**  **Nov. 30, 2001****Nov. 30, 2000****INCREASE IN NET ASSETS**   **From Operations**    Net investment income $116,659 $119,063 Net realized loss on investments(14,763)(9,191) Net increase (decrease) in unrealized appreciation80,93424,047  Net increase in net assets from operations $182,830 $133,919     **Dividends to shareowners from**    Net investment income(114,823)(119,079)    **Fund Share transactions**    Proceeds from sales of shares351,703963,173  Value of shares issued in reinvestment of dividends113,922118,846   465,6251,082,019  Cost of shares redeemed(899,416)(337,611) Net increase (decrease) in net assets from share transactions(433,791)744,408 **Total increase (decrease) in net assets********$(365,784)****$759,248**    **NET ASSETS**    Beginning of year2,554,6451,795,397  End of year$2,188,861$2,554,645     **Shares of the fund sold and redeemed**    Number of shares sold70,340196,084  Number of shares issued in reinvestment of dividends22,59624,197   92,936220,281  Number of shares redeemed(180,306)(68,785)**Net increase (decrease) in number of shares outstanding** **(87,370)****151,496**
*(The accompanying notes are an integral part of thesefinancial    statements)*
**DISCUSSION OFSEXTANT        SHORT-TERM BOND FUND PERFORMANCE**
         
*(unaudited)*
**FISCAL YEAR 2001**For the fiscal year ended November 30, 2001, the Sextant Short-Term Bond    Fund returned 7.50% to its shareowners. Reflecting many changes inshort-term    interest rates during the year, the Fund’s price moved in a wider range    (4.2%) than past years, from $4.96 to $5.17. For the fiscal year, the Fund    ranked in the top 63% of 211 funds in the Morningstar “Short-termBond”    category. For the last five years, the Fund has provided a 5.96% annualized    total return and ranks in the top 47% of 146 funds in its Morningstarcategory.    At November 30, 2001, the Fund held Morningstar’s 4-star rating (judged    against 1822 Fixed Income funds). For the second year, the Fundsubstantially    outperformed most equity portfolios as the stock market declined again.
*6* *November 30,          2001 Annual Report*
**FACTORS AFFECTING PAST PERFORMANCE**Over the last twelve months, the Federal Reserve reversed its prior year    rate increases and lowered the Federal Funds rate from 6.50% to 1.75% toboost    the economy. This caused a dramatic steepening of the US Treasury yieldcurve    and drove prices of short-term notes higher. Despite this historic reduction    in short-term rates, yields on long-term US Treasury bonds are nearlyunchanged    – despite the cancellation of the issuance of thirty-year bonds. The    yields on investment-grade corporate debt are lower than one year ago and    the returns from investment-grade corporate debt exceeded the returns from    US Treasuries. This benefited the Fund as its portfolio consists primarily    of corporate bonds. Lower short-term interest rates caused the Fund’s    current yield to drop. The Fund’s average maturity continued at less    than three years.

**LOOKING FORWARD**    We expect the US economy to start growing again by mid-2002, inflation to    remain subdued and the yield curve to flatten as the recovery unfolds. We    expect this recovery to manifest itself slowly. As usual, short-term rates    will rise once economic recovery is clear. The Federal Reserve Bank and the    US Government reacted to the onset of recession by lowering interest rates    and reducing federal income taxes. Early success in the “war onterrorism”    and raising consumer confidence have eroded bi-partisanism in the federal    government and the focus turns to the 2002 election season. Further stimulus    is unlikely now. Falling energy prices, lower mortgage rates and lowinflation    are supporting consumer spending and the economy. We expect The FederalReserve    to slowly push short-term interest rates back up toward the 4% range. This    should produce a flatter yield curve and slightly wider corporate spreads    in the short end. 

**MANAGEMENT FEE CALCULATIONS**    The Sextant Short-Term Bond Fund calculates part of its management fee based    on a comparison of the Fund’s return to the average return of theMorningstar    category Short-Term Bond. The Fund’s 12-month return (7.50%) differed    by less than one percent from that of the average (7.65%) on November 30,    2001. Therefore, no performance adjustment to the basic 0.60% management fee    was made for the month of December 2001. 

**COMPARISON TO INDEX**    Comparison of any mutual fund to a market index must be made bearing in mind    that the Index is unmanaged, and expense-free. The graph below compares$10,000    invested in the Fund at its inception in September 1995, compared to asimilar    amount invested in the Salomon Brothers Gov/Corp Investment Grade Bond Index    for maturities between one and three years. The graph shows that a $10,000    investment made on September 1995 would have risen to $14,152 in the Fund    and $14,944 in the Index. The returns shown do not reflect the deduction of    income taxes that an investor could pay on income received or the sale of    profitable investments. 

 

 

**Sextant Short-Term Bond Fund vs. Salomon Gov/Corp 1-3 yr.**

*(graph omitted)*

 

 
*November 30, 2001        Annual Report* *7***INVESTMENTS** 
****SEXTANT BOND          INCOME FUND****(Graphic          Omitted)**Rating****Issuer********Coupon/Maturity****Face Amount****Market Value** **Banking (10.6%)**    A+Chase Manhattan 7.125% 6/15/2009$50,000 $53,450ACiticorp 7.25% 10/15/201150,000 53,600A-Comerica Bank 7.125% 12/1/201350,000 48,309AA-Norwest Financial 6.85% 7/15/200950,000 52,840  SUB-TOTAL 200,000 208,199 **Building Products (3.2%)**    BBBMasco Corporation 7.125% 8/15/201360,00062,706 **Chemicals (2.8%)**    A-Air Products & Chemicals 8.75% 4/15/202150,00055,635****Computer (1.5%)**********ADell Computer 6.55% 4/15/200830,000 30,195 **Diversified Financial Services (3.6%)**    AAAGeneral Electric Capital  8.125% 5/15/201260,00069,816 **Electric Utilities (5.2%)**    A+Alabama Power 7.75% 2/1/202350,000 50,295BBBCommonwealth Edison 7.50% 7/1/201350,000 51,960  SUB-TOTAL 100,000 102,255 **Electronics (2.5%)**    A-Koninlijke Phillips Electronics  7.25% 8/15/201350,000 49,420 **Food (5.6%)**    BaaConagra 7.875% 9/15/201050,000 55,390A+Hershy Foods 6.95% 8/15/201250,000 53,740  SUB-TOTAL 100,000 109,130 **Insurance (6.7%)**    AAllstate 7.50% 6/15/201350,000 54,630AProgressive  7.00% 10/1/201375,00076,410  SUB-TOTAL 125,000131,040 **Investment Finance (5.4%)**    AMorgan Stanley Dean Witter 6.75% 10/15/201350,000 50,750BBB+Paine Webber Group 7.625% 2/15/201450,000 55,770  SUB-TOTAL 100,000 106,520 **Machinery (2.5%)**    ACaterpillar Inc. 9.375% 8/15/201140,00048,924 **Medical Supplies (2.2%)**    A+Becton Dickinson 7.15% 10/1/200940,000 42,660 **Oil & Gas (8.9%)**    BBBCoastal Energy (El Paso Corp.) 9.625% 5/15/201265,00076,219ANorsk Hydro A/S (Yankee) 7.50% 10/1/201650,00053,555ATexaco Capital 8.625% 6/30/201040,000 45,634  SUB-TOTAL 155,000175,408 **Retailing (11.6%)**    A+Dayton Hudson (Target Stores) 10.00% 1/1/201150,000 64,645ALowe's Corp. 8.25% 6/1/201050,000 57,390A+May Department Stores 8.00% 7/15/201250,000 56,470AAWal-Mart Stores 7.25% 6/1/201345,00049,869  SUB-TOTAL 195,000 228,374 **Telecommunications (2.6%)**    AA-GTE 6.90% 11/1/200850,000 51,990 **Transportation (5.2%)**    AGeneral Motors 7.70% 4/15/201650,000 50,700AUS Freightways Corp. 8.50% 4/25/201050,000 51,014  SUB-TOTAL 100,000 101,714 **US Government (15.7%)**    AAAUS Treasury Bond 7.25% 5/15/2016260,000307,369       **Total Investments (95.8%)** (Cost = $1,832,443)$1,715,000 1,881,355 Other Assets (net of liabilities) (4.2%)   83,231 **Total Net Assets (100%)**   $1,964,586     *Ratings are the lesser of S&P or Moody's (unaudited)    *November 30, 2001        Annual Report* *9*******FINANCIAL HIGHLIGHTS** 
**SEXTANT BONDINCOME          FUND**(graphic          omitted)Selected data per share of capital stock outstandingthroughout        the year         **Year ended November 30,**   **2001****2000****1999****1998****1997****Net asset value at beginning of year**  **$4.56****$4.59****$5.00****$4.83****$4.76** Income from investment operations       Net investment income  0.30 0.29  0.30  0.29  0.30  Net gains or losses on securities (both realized andunrealized)  0.25 (0.03) (0.41) 0.17  0.07         Total from investment operations   0.55 0.26  (0.11) 0.46  0.37  Less distributions       Dividends (from net investment income)        Taxable (0.30) (0.29) (0.30) (0.29) (0.30) Distributions (from capital gains)  -  - - - -Total distributions   (0.30) (0.29) (0.30) (0.29) (0.30)**Net asset value at end of year************$4.81****$4.56****$4.59****$5.00****$4.83****Total return************12.40%****6.05%****(2.20)%****10.08%****8.24%**Ratios/supplemental data       Net assets ($000), end of year   $1,965 $1,505  $885  $1,345 $1,092 Ratio of expenses to average net assets  0.34%0.35%0.39%0.30%0.47%Ratio of net investment income to average net assets  6.71%6.56%6.31%6.24%6.85%**Portfolio turnover rate************30%****0%****20%****0%****51%** For each of the above years, all or a portion of theoperating        expenses were waived. If these costs had not been waived, the resulting        increases to the ratio of expenses to average monthly net assets would        be .72%, .64%, .66%,.61%, and .63%, respectively. 
**STATEMENT OFASSETS          AND LIABILITIES**
   *As of November 30, 2001*    **Assets**     Investments (cost $1,832,443) $1,881,355  Cash 52,472  Interest receivable 30,411  Insurance reserve premium 1,221    Total Assets $1,965,459**Liabilities**     Other Liabilities 873   Total Liabilities 873**Net Assets**   **$1,964,586****Fund Shares Outstanding**   **408,067****Analysis of Net Assets**     Paid in capital (unlimited shares authorized, without par        value) 2,005,335  Accumlated net realized loss on investments (89,661)  Unrealized net appreciation  48,912   Net Assets applicable to Fund shares outstanding $1,964,586**Net Asset Value, Offering and Redemption price pershare****************$4.81***(The accompanying notes are an integral part of thesefinancial  statements)**10* *November 30,          2001 Annual Report*(graphicomitted)**SEXTANT BOND INCOME FUND** 
**STATEMENT OFOPERATIONS******  ***For the year ended November 30, 2001*****Investment income**     Interest income $108,542  Amortization of bond premium (3,791)  Miscllaneous income 5,288   Gross Investment Income $110,039**Expenses**     Investment advisor and administration fee 9,497  Professional fees 2,254  Filing and Registration fees 871  Custodian fees 818  Meetings 756  Printing and postage 599  Insurance fees 575  Miscellaneous expenses 295  Total gross expenses 15,665   Less: Advisor fees waived(9,497)   Less: Custodian fees waived(818)  Net expenses  5,350  Net Investment income 104,689**Net realized loss on investments**     Proceeds from sales 450,904  Less: cost of securities sold based on identified cost 453,018   Realized net loss (2,114)**Unrealized gain on investments**     End of year 48,912  Beginning of year (40,501)   Increase in unrealized gain for the period 89,413  Net realized and unrealized gain on investments 87,299**Net increase in net assets resulting fromoperations************$191,988**   
 
**STATEMENT OFCHANGES      IN NET ASSETS** 
       **Year ended****Year ended**  **Nov. 30, 2001****Nov. 30, 2000****INCREASE IN NET ASSETS**   **From Operations**    Net investment income$104,689$76,637  Net realized gain (loss) on investments(2,114)0  Net increase in unealized appreciation89,4134,544  Net increase in net assets from operations191,988 81,181     **Dividends to shareowners from**    Net investment income(104,689)(76,637)    **Fund Share transactions**    Proceeds from sales of shares578,938678,511  Value of shares issued in reinvestment of dividends103,33274,941   682,270753,522  Cost of shares redeemed(310,083)(138,153) Net increase in net assets from share transactions372,187615,369**Total increase in net assets********$459,486****$619,913**    **NET ASSETS**    Beginning of year1,505,100885,257  End of year$1,964,586$1,505,170    **Shares of the fund sold and redeemed**    Number of shares sold121,443151,874  Number of shares issued in reinvestment of dividends21,78716,686   143,230168,560  Number of shares redeemed(65,605)(30,840)**Net increase in number of shares outstanding********77,625****137,720***(The accompanying notes are an integral part of thesefinancial  statements)**November 30, 2001      Annual Report* *11***DISCUSSION OFSEXTANT      BOND INCOME FUND PERFORMANCE**
*(unaudited)*
**FISCAL YEAR 2001**  For the fiscal year ending November 30, 2001, the Sextant Bond Income Fundreturned  12.48% – our best year since the 17.69% achieved in 1995. The Fund’s  most recent thirty-day SEC yield is 4.86%, down 240 basis points since last  year. Consistent with the Fund’s conservative investment philosophy, the  Fund’s daily net asset value moved in a relatively narrow range (7.1%,  from $4.63 low to $4.96 high). For the fiscal year, the Fund ranked in the top  17% of the 91 funds in the Morningstar “Long-term Bond” category.  For the last five years, the Fund has provided a 6.82% annualized total return  and ranks in the top 15% of 85 funds in its Morningstar category. The majority  of the Fund’s risk and return comes from its minimum average portfolio  maturity of ten years. At November 30, 2001, the Fund held Morningstar’s  3-star rating (judged against 1822 Fixed Income funds). 

**FACTORS AFFECTING PAST PERFORMANCE**  The Fund’s average effective maturity was held close to ten years, toreduce  market risk and take advantage of an anticipated steepening in the yield curve  between ten and thirty years. This strategy benefited the Fund as ten-yearrates  did fall more than thirty-year rates during the year. The dollar weightedaverage  maturity of the portfolio is currently 11 years.  The portfolio remained primarily invested in quality corporate debt issuesthrough  the year. This strategy also benefited the Fund, as investment-grade corporate  paper produced a 4.00% higher total return than US Treasury paper as measured  by the Solomon Brothers Corporate Index (SBCRP) and the Solomon BrothersTreasury  Index (SBGT). Sextant Bond Income Fund’s 12.48% return exceeded the 8.61%  one-year return on the Solomon US Treasury Index 10+ years. The Bond market  benefited from the marked weakness in equity prices. For the second year, the  Fund easily outperformed most equity portfolios. 

**LOOKING FORWARD**For 2002, we expect long-term US Treasury rates will continue to movewithin  a range of 6.25% to 4.75%. The US economy is signaling that it should begin  growing again by mid-2002. Inflation will remain subdued and the yield curve  will flatten as the recovery unfolds. We expect this recovery to manifestitself  slowly. We do not expect a cyclical rise in rates until after the economicrecovery  is underway.   The extraordinary events of the last twelve months have created large swings  in long interest rates. Despite economic weakness in the US, Asia and South  America, long-term interest rates ended the year only slightly lower.Investors  are weighing the potential for an economic recovery and higher inflationinitiated  by lower interest rates and federal income taxes against the possibility of  more economic weakness in the US and abroad. At the moment, these forces seem  to be roughly in balance with neither a deep recession nor a strong recovery  at hand. The failure of long US Treasury rates to come down more indicate the  US Government should be cautious about applying any further stimulus.   Although investment grade corporate bonds are no longer cheap to USTreasuries,  this year’s flight to quality and the disappearance US budget surpluscontinue  to argue for an overweight position in corporate paper. The Fund’saverage  maturity will remain close to the ten-year area. The weakening US Government  budget, concern about inflation caused by an economic recovery and possibility  of the re-issuance of the thirty-year US Treasury bond argue against investing  further out on the curve. 
*12* *November 30,        2001 Annual Report*
**MANAGEMENT FEE CALCULATIONS**  The Sextant Bond Income Fund calculates its management fee based on acomparison  of the Fund’s return to the return of Morningstar’s “Long-term  Bond” category. This category consists of mutual fund portfolios that“focus  on corporate and other investment grade issues with an average duration ofmore  than six years or an effective average maturity of more than ten years.”  The Fund’s 12-month return (12.48%) exceeded that of the index (8.24%)  on November 30, 2001. Therefore, the basic 0.60% management fee would havebeen  increased by the maximum amount of 0.20% to 0.80% for the month of December  2001 as the Fund outperformed its benchmark index by more than 2%. However,  no management fee was actually paid, since the advisor has voluntarily waived  the entire fee until assets exceed $2 million. 

**COMPARISON TO INDEX**  Comparison of any mutual fund to a market index must be made bearing in mind  that the index is unmanaged, and expense-free. Conversely, the fund will (1)  be actively managed, (2) have an objective other than mirroring the index,such  as limiting risk, (3) bear transaction and other costs, (4) stand ready to buy  and sell its securities to shareowners on a daily basis, and (5) provide awide  range of services. The graph below compares $10,000 invested in the Fund at  its inception, compared to a similar amount invested in The Salomon Brothers  Broad Investment-Grade Bond Index. The graph shows that the investment at the  beginning of October 1993 would have risen to $16,246 in the Fund and $18,199  in the Index. The September 1995 changes in this Fund’s investment policy  limit the usefulness of this comparison. The returns shown do not reflect the  deduction of income taxes that an investor could pay on income received or the  sale of profitable investments. 

 

 

**Sextant Bond Income Fund vs. Salomon Broad Investment Grade  Bond Index**

*(graph omitted)*

 
*November 30, 2001      Annual Report* *13***INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)**Issue********Number of Shares****Cost****Market Value****Common Stocks (87.8%)******************     **Banking (12.9%)**    Convergys*  3,500 $129,041 $116,305JP Morgan Chase & Co.  1,500 85,433 56,580Frontier Financial  4,000  90,207  104,120Washington Mutual  6,750 44,124  211,140 SUB-TOTAL  348,805 488,145**Computers (12.4%)**    3 Com* 5,00021,56022,400Adobe Systems  4,800  50,490  153,984Apple Computer*  4,000  67,472  85,200Intuit*  1,500  76,603 65,850Oracle*   8,000  28,058  112,240Phoenix Technologies Ltd.*  3,062  29,149  33,008 SUB-TOTAL  273,332 472,682**Construction (8.8%)**    Building Materials Holding*  4,000  44,171  45,000Lowe's Companies 4,000135,141181,240Weyerhaeuser  2,000  93,867  105,700 SUB-TOTAL  273,179 331,940**Electronics (4.5%)**    Agilent Technologies*  1,200  57,828  32,724FLIR Systems*  2,500 23,065 100,375Intel  1,200  81,338  39,192 SUB-TOTAL  162,231 172,291**Hotels & Motels (2%)**    Westcoast Hospitality*  12,000  92,520  75,720**Investments (9.3%)**    Neuberger Berman 1,50080,10559,535Schwab (Charles)  20,415  9,117  293,160 SUB-TOTAL 89,222352,695**Machinery (1.1%)**    Regal-Beloit   2,000  52,106  43,520**Medical (17.8%)**    Affymetrix*  2,000  26,862 72,440Barr Laboratories* 1,00083,67973,050Immunex Corp*  6,000  34,598  162,000Ligand Pharmaceuticals*  5,000  56,430  82,600Lilly (Eli)  800  77,567  66,138Pharmaceutical Product Development*  9,000 80,608 217,080  SUB-TOTAL   359,744 673,306**Metal Ores (1.3%)**    Phelps Dodge  1,330  76,218  47,654**Oil &Gas Production (3.3%)**    Noble Drilling*  2,000  14,212  59,000Williams Companies  2,500  73,415 66,800 SUB-TOTAL  87,627 125,800**Publishing (1.5%)**    Wiley (John) & Sons, Class A  2,400  47,112  55,656**Retail (7.6%)**    Target  2,000  48,094  75,080Whole Foods Market*  5,000 74,348  214,550 SUB-TOTAL  122,442 289,630**Transportation (5.3%)**    Airborne Freight  5,000  60,308  67,150Southwest Airlines  6,000 90,163 112,500Trinity Industries  800  22,658  21,328 SUB-TOTAL  173,129  200,978     **Total Investments (87.8%)**   $2,157,667 3,330,017Other Assets (net of liabilities) (12.2%)    461,496     **Total Net Assets (100%)**    $3,791,513     *Non-income producing    *November 30, 2001      Annual Report* *15***FINANCIALHIGHLIGHTS** 
****SEXTANT GROWTH        FUND****(graphic        omitted)Selected data per share of capital stock outstandingthroughout      the year                **Year ended November 30,**   **2001****2000****1999****1998****1997****Net asset value at beginning of year**  **$13.16****$12.68****$9.29****$9.58****$7.92** Income from investment operations       Net investment income  (0.02) (0.07) (0.06) 0.02  (0.01)  Net gains or losses on securities (both realized andunrealized)  (1.24) 1.36 4.26 (0.09) 2.41         Total from investment operations   (1.26) 1.29 4.20 (0.07) 2.40  Less distributions       Dividends (from net investment income)  - - (0.14) (0.02) (0.01) Distributions (from capital gains)  - (0.81) (0.67) (0.20) (0.73)Total distributions   - (0.81) (0.81) (0.22) (0.74)**Net asset value at end of period************$11.90****$13.16****$12.68****$9.29****$9.58****Total Return************(9.57)%****10.16%****44.76%****(0.97)%****30.30%**Ratios / Supplemental Data       Net assets ($000), end of year  $3,792$3,862 $3,116 $2,139 $2,188 Ratio of expenses to average net assets  0.78%1.05%1.12%0.66%1.04%Ratio of net investment income to average net assets  (0.18)%(0.51)%(0.50)%0.19%(0.12)%**Portfolio turnover rate************8%****20%****28%****41%****25%**        ****
**STATEMENT OFASSETS        AND LIABILITIES***As of November 30, 2001*    **Assets**    ****Investments (cost $2,157,667) $3,330,017 ****Cash 460,012 ****Receivable from adviser 2,351 ****Dividends receivable 1,358 ****Insurance reserve premium 1,214  **** Total Assets 3,794,952**Liabilities**    ****Other Liabilities 3,439 **** Total Liabilities 3,439**Net Assets**   **$3,791,513****Fund Shares Outstanding**   **318,719****Analysis of Net Assets**    ****Paid in Capital (unlimited shares authorized, without par      value) $2,610,766 ****Accumlated net realized gain on investments 8,397 ****Unrealized net appreciation to Fund shares outstanding 1,172,350 **** Net Assets applicable to Fund shares outstanding $3,791,513**Net Asset Value, Offering and Redemption price pershare**   **$11.90**     
*(The accompanying notes are an integral part  of these financial statements)*
*16* *November 30,        2001 Annual Report*(GraphicOmitted)**SEXTANT GROWTH FUND** 
**STATEMENT OFOPERATIONS******  ***For the year ended November 30, 2001*****Investment income**    ****Interest income $21,726 ****Miscllaneous income 144 **** Gross Investment Income 21,870**Expenses**    ****Investment advisor and administration fee 16,109 ****Professional fees 4,697 ****Filing and Registration fees 2,600 ****Custodian fees 2,348  Meetings 1,845 ****Insurance fees 1,480 ****Printing and postage 1,155 ****Miscellaneous expenses 655 ****Total gross expenses 30,889 **** Less: Custodian fees waived(2,348) ****Net expenses  28,541**** Net Investment loss (6,671)**Net realized loss on investments**    ****Proceeds from sales 274,072 ****Less: cost of securities sold based on identified cost 323,791 **** Realized net loss (49,719)**Unrealized gain on investments**     End of year 1,172,350  Beginning of year 1,476,805   Decrease in unrealized gain for the period (304,455)  Net realized and unrealized loss on investments (354,174)**Net decrease in net assets resulting fromoperations************$(360,845)****STATEMENT      OF CHANGES IN NET ASSETS** 
********  **Year ended****Year ended**  **Nov. 30, 2001****Nov. 30, 2000****INCREASE (DECREASE) IN NET ASSETS**   **From Operations**   ****Net investment loss$(6,671)$(20,519)****Net realized gain (loss) on investments(49,719)210,239 ****Net increase (decrease) in unealized appreciation(304,455)92,376 ****Net increase (decrease) in net assets from operations(360,845)282,096 ****   **Dividends to shareowners from**   ****Net investment income-(13,280)****Capital gains distributions-(210,270)**** -($223,550)****   **Fund Share transactions**   ****Proceeds from sales of shares603,793759,028 ****Value of shares issued in reinvestment of dividends-222,056 **** 603,793981,084 ****Cost of shares redeemed(313,737)(293,378)****Net increase in net assets from share transactions290,056687,706 **Total increase (decrease) in net assets** **$(70,789)****$746,252******   **NET ASSETS**   ****Beginning of year3,862,3023,116,050 ****End of year$3,791,513$3,862,302 ****   **Shares of the fund sold and redeemed**   ****Number of shares sold50,80550,682 ****Number of shares issued in reinvestment of dividends-16,874 **** 50,80567,556 ****Number of shares redeemed(25,630)(19,692)**Net increase in number of shares outstanding** **25,175****47,864**
*(The accompanying notes are an integral part of these financialstatements)*
*November 30, 2001      Annual Report* *17***DISCUSSION OFSEXTANT      GROWTH FUND PERFORMANCE**
*(unaudited)*
**FISCAL YEAR 2001**  For the fiscal year ending November 30, 2001, the Sextant Growth Fund fell-9.6%.  While any decline is unfortunate, this result again was better than the market  averages as well as most growth funds. The NASDAQ Composite Index declined-25.4%,  and the broader S&P 500 Index lost -12.2%. For this latest fiscal year,  the Fund again ranked near the top of the 962 funds in its peer Morningstar  Large Growth category. For the last five years, the Fund has provided a 13.2%  average annualized total return. For the year, total assets dropped 2% to $3.8  million as the Fund continued to attract new investors.   The volatility, risks and returns of the stock market continue. The weakperformance  of most market segments in 2000 and again in 2001 mean that investorexpectations  have become more reasonable, removing an impediment to future market returns.

**FACTORS AFFECTING PAST PERFORMANCE**  The events of 2001 include the September 11 terrorist attacks, the Afghanistan  war, recession, a sharp bear market for stocks, and spectacular corporatedemises.  In addition to dealing with loss of life, property, livelihood, and peace of  mind in the wake of these events, many investors endured steep equitydeclines.    The Fund seeks long-term growth through investment in common stocks of U.S.  companies. It generally follows a value investment approach, favoringcompanies  with good fundamentals and relatively low price/earnings ratios. This year's  market decline continued last year’s, with many companies, especiallythose  in technology-related businesses, dropping. Our technology stocks suffered,  but our mid-sized and smaller companies meant a good overall result. 

**LOOKING FORWARD**  Stocks ultimately reflect their underlying business values. After their weak  performance in 2000 and 2001, we feel many stocks are more properly priced.  Growth of the U.S. economy is likely to resume in mid-2002, as low interest  rates boost consumer confidence, spending and investment. The tax cuts enacted  in 2001 will improve savings as well as consumer and business spending. 

**MANAGEMENT FEE CALCULATIONS**  The Sextant Growth Fund calculates part of its management fee based on acomparison  of the Fund’s return to the average return in Morningstar's DomesticGrowth  category. At November 30, 2001, the one-year return for this category average  was -9.65%. Because the Fund's 12-month return outperformed this average by  less than 1% at November 30, 2001, the adviser earned no bonus or penaltyperformance  fee for the month of December 2001. For the fiscal year, some months of weaker  comparative investment performance helped shareowners a bit. The Fund's total  expense ratio decreased to 0.78% from 1.05% the prior year. 

 
**18** *November 30,        2001 Annual Report*
**COMPARISON TO INDEX**  The line graph compares Sextant Growth Fund's performance to that of abroad-based  stock market index, the Standard & Poor's 500 Index. Comparison of anymutual  fund to a market index must be made bearing in mind that the index isunmanaged,  and expense-free. Conversely, the fund will (1) be actively managed, (2) have  an objective other than mirroring the index, such as limiting risk, (3) bear  transaction and other costs, (4) stand ready to buy and sell its securities  to shareholders on a daily basis, and (5) provide a wide range of services.  The graph below compares $10,000 invested in the Fund at November 30, 1991(ten  years ago), compared to a similar amount invested in Standard & Poor's 500  Index. The graph shows that the investment in the Fund would have risen to$27,317  and $37,288 in the Index. The 1995 changes in this Fund’s investmentobjectives  and policies limit the usefulness of this comparison. The returns shown do not  reflect the deduction of income taxes that an investor could pay on incomereceived  or the sale of profitable investments. 

 

 

**Sextant Growth Fund vs. S&P 500 Index**

*(graph omitted)*

 
**November      30, 2001 Annual Report** *19*******INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)**Issue********Number of Shares****Cost****Market Value****Country****Common Stocks (77.4%)**********************      **Aircraft (1.9%)**     Embraer Aircraft ADR 1,500$38,169$27,750Brazil      **Banking and Financial (11.8%)**     Aegon NV 1,23811,51232,931NetherlandsAustralia and New Zealand Bank ADS 50010,87522,065AustraliaAXA ADS 1,00031,16521,420FranceBanco Bilbao Vizcaya ADS 1,8007,70221,960SpainING Groep ADS 1,40036,13436,414NetherlandsToronto-Dominion Bank 1,40018,15935,182Canada SUB-TOTAL 115,547169,972 **Building Materials (4.1%)**     C R H plc ADR 2,00023,07532,000IrelandHanson plc ADR 80024,57426,808UK SUB-TOTAL 47,64958,808 **Computers (15.3%)**     Business Objects ADS* 6,00019,570201,600FranceDassault Systems ADS 40013,87519,296France SUB-TOTAL 33,445220,896 **Consumer Products (3.2%)**     Coca-Cola Femsa ADS 1,5009,75028,125MexicoGucci Group NV 20010,92517,752Italy SUB-TOTAL 20,67545,877 **Country Funds (.8%)**     New Ireland Fund, Inc. 1,08212,62611,274Ireland**Electronics (2.2%)**     Epcos AG ADS 50034,20623,325GermanySony ADR 20023,0779,540Japan SUB-TOTAL 57,28332,865 **Hotels (.4%)**     Fairmont Hotels & Resorts 3003,7316,408Canada**Medical-Drugs (3.8%)**     Aventis ADS 50815,85935,311FranceGlaxo Wellcome plc ADR 4009,80020,324UK SUB-TOTAL 25,65955,635 **Metals & Mining (5%)**     Fording 1,00015,17015,880CanadaPotash Corp of Saskatchewan 30021,16419,819CanadaRio Tinto plc ADS 50031,17537,725UK SUB-TOTAL 67,50972,265 **Oil & Gas Production (7.1%)**     American Movil ADR 2,00029,72534,700MexicoPetroleum Geo-Services ADS* 1,00010,9796,710NorwayRepsol-YPF ADR 2,00043,59228,600SpainTotal Fina Elf ADR 50021,86432,045France SUB-TOTAL 106,160102,055 **20** **November        30, 2001 Annual Report******(Graphic      Omitted)**SEXTANT      INTERNATIONAL FUND** 
**INVESTMENTS****Paper Products (1.4%)**     Metso ADS* 2,10022,80220,370Finland      **Photographic Equipment (3.3%)**     Canon, Inc. ADR 1,00023,42733,900JapanFuji Photo Film ADR 40010,05013,676Japan SUB-TOTAL 33,47747,576 **Real Estate (2.7%)**     Intrawest  2,40041,34138,640Canada      **Telecommunications (6.5%)**     BCE 90015,83020,718CanadaBrasil Telecom Participacoes SA ADS 601,3872,127BrazilBritish Sky Broadcasting ADS 30011,06222,008UKNortel Networks 1,41282,96811,014CanadaPT Indosat ADR 1,00020,9528,070IndonesiaTele Norte Leste Participacoes ADS 3356,9334,435BrazilTelefonica ADS* 54312,05821,677SpainTelesp Celular Participacoes ADS 50024,8953,700Brazil SUB-TOTAL 176,08593,749 **Transportation (3.4%)**     Canadian Pacific Railway Ltd. 6007,98511,526CanadaDesc SA ADR 2,70042,98119,845MexicoLan Chile ADS 2,50018,84517,750Chile SUB-TOTAL 69,81149,121 **Utilities-Electric (4%)**     Enel ADS* 80035,37222,744ItalyEnersis ADS 1,10324,67615,056ChileKorea Electric Power ADS 2,00031,96120,140Korea SUB-TOTAL 92,00957,940 **Utilities-Gas (.5%)**     Transport de Gas del Sur ADR 1,50018,8086,855Argentina      **Total Investments (77.4%)**  $982,7861,118,056 Other Assets (net of liabilities) (22.6%)   326,785 **Total Net Assets (100%)**   $1,444,841       * Non-income producing     

 
**November      30, 2001 Annual Report** *21***FINANCIAL HIGHLIGHTS** **SEXTANTINTERNATIONAL          FUND**(graphic          omitted)Selected data per share of capital stock outstanding            throughout each year              **Year ended November 30,**  **2001****2000****1999****1998****1997****Net asset value at beginning of year** **$8.52****$8.32****$6.81****$6.61****$5.87** Income from investment operations      Net investment income 0.04 0.43 0.13  0.04  0.06  Net gains or losses on securities (both realized andunrealized) (1.30) 0.20 1.57  0.20  0.74 Total from investment operations  (1.26) 0.63 1.70  0.24  0.80  Less distributions      Dividends (from net investment income) (0.02) (0.43) (0.12) (0.04) (0.06) Distributions (from capital gains) -  - (0.07) - -Total distributions  (0.02) (0.43) (0.19) (0.04) (0.06)**Net asset value at end of period********$7.24****$8.52****$8.32****$6.81****$6.61****Total return********(14.80)%****7.62%****24.90%****3.57%****13.58%**Ratios/supplemental data      Net assets ($000), end of period $1,445$1,736 $1,162 $881 $881 Ratio of expenses to average net assets 1.17%1.20%0.72%1.16%1.51%Ratio of net investment income to average net assets 0.34%4.74%1.74%0.54%0.93%**Portfolio turnover rate********6%****11%****17%****18%****9%**       
**STATEMENT OF              ASSETS AND LIABILITIES******     *As of November 30, 2001*    **Assets**    ****Investments (Cost $982,786)  $1,118,056 ****Cash  325,902 ****Dividends Receivable  1,767 ****Receivable from adviser 1,028 **** Total Assets  1,446,753****    **Liabilities**    ****Other Liabilities  1,933 **** Total Liabilities  1,933****    **Net Assets**   **1,444,820******   ******Fund Shares Outstanding**   **199,460******    **Analysis of Net Assets**    ****Paid in Capital (unlimited shares authorized, without parvalue)  1,382,507  Accumulated net investment income 1,470 ****Accumlated net realized loss on investments  (74,427) ****Unrealized net appreciation  135,270 **** Net Assets applicable to Fund shares outstanding  $1,444,820****    **Net Asset Value, Offering and Redemption price per            share**  **$7.24**
*(The accompanying notes are anintegral        part of these financial statements)*
**22** **November              30, 2001 Annual Report**********(graphic            omitted)******SEXTANT            INTERNATIONAL FUND** 
**STATEMENT              OF OPERATIONS******  ***For the year ended November 30,2001***     **Investment Income**    ****Dividend income (net of foreign tax of $3,014)  $20,531 **** Gross Investment Income  20,531****    **Expenses**    ****Investment advisor and administration fee  9,444 ****Custodian fees 2,563 ****Professional fees  2,128 ****Filing and registration fees  1,532  Meetings 808 ****Printing and postage  638  Insurance 441 ****Miscellaneous expenses 292 ****Total gross expenses  17,846 ****Less: Custodian fees waived  (2,563) ****Net expenses  15,283 **** Net Investment income  $5,248****    **Net realized loss on investments**    ****Proceeds from sales  117,679 ****Less: cost of securities sold based on identifiedcost  190,535 **** Realized net loss  (72,856)****    **Unrealized gain on investments**     End of year  135,270  Beginning of year  325,101   Decrease in unrealized gain for the period  (189,831)  Net realized and unrealized loss on investments  (262,687)     **Net decrease in net assets resulting fromoperations************$(257,439)**********STATEMENT OF CHANGES IN NET            ASSETS** 
********  **Year ended****Year ended**  **Nov. 30, 2001****Nov. 30, 2000****DECREASE IN NET ASSETS**   **From Operations**   ****Net investment income  $5,248 $82,879 ****Net realized loss on investments (72,856) (1,570)****Net decrease in unealized appreciation (189,831) (82,543)****Net decrease in net assets from operations $(257,439) $(1,234)****   **Dividends to shareowners from**   ****Net investment income (3,779) (84,173)****Capital gains distributions -  - ****Total Distributions (3,779) (84,173)****   **Fund Share transactions**   ****Proceeds from sales of shares 120,139 712,898 ****Value of shares issued in reinvestment of dividends 3,752 83,581 ****  123,891 796,479 ****Cost of shares redeemed (154,296) (136,909)****Net increase (decrease) in net assets from share transactions (30,405) 659,570 **Total increase (decrease) in net assets** **$(291,623)****$574,163******   **NET ASSETS**   ****Beginning of year 1,736,443 1,162,280 ****End of year $1,444,820 $1,736,443 ****   **Shares of the fund sold and redeemed**   ****Number of shares sold 14,929 67,998****Number of shares issued in reinvestment of dividends 518 9,810 ****  15,447 77,808****Number of shares redeemed (19,782) (13,794)**Net increase (decrease) in number of sharesoutstanding** **(4,335)****64,014**
*(The accompanying notes are an integral part ofthese          financial statements)*
***November              30, 2001 AnnualReport*** **23****DISCUSSION              OF SEXTANT INTERNATIONAL FUND PERFORMANCE**
*(unaudited)*
**FISCAL YEAR 2001**          For the fiscal year ended November 30, 2001, the Sextant International          Fund fell -14.8%. This was the first loss experienced for a fiscalyear          since the Fund’s inception in 1995. While any decline isunfortunate,          this result again was better than the market averages as well as most          international funds. The comparable AMEX International Index declined          -21.7%. For this latest fiscal year, the Fund ranked in the top 20%          of the 776 funds in its peer Morningstar "Foreign Stock"category.          For the last five years, the Fund has provided an 6.14% annualizedtotal          return. 

**FACTORS AFFECTING PAST PERFORMANCE**          The events of 2001 include the September 11 terrorist attacks in the          US, the Afghanistan war, undimished strife in the Middle East, thebeginning          of a US recession, general bear markets for stocks around the world,          and spectacular corporate demises. In addition to dealing with loss          of life, property, livelihood, and peace of mind in the wake of these          events, many investors endured steep equity declines.           Investing in foreign securities includes risks not present in domestic          securities. During 2000 and 2001, we saw that uncertainties at home          can create disasters in foreign markets. Our portfolio was moreheavily          invested in Europe and Canada than Asia, which helped results.Commodity          prices remained weak, bringing no relief to our cyclical andresource-based          issues. Financials suffered in light of huge insurance claims. 

**LOOKING FORWARD**          The Sextant International Fund is broadly invested in growingcompanies          headquartered outside the United States. Our focus on value investing          continued to serve us in 2001, when technology and other“growth”          stocks tumbled.           The US economy is signaling that it should begin growing again bymid-2002.          We expect this recovery to manifest itself slowly, and inflation will          remain subdued. Foreign economies normally recover as the US market          buys more foreign goods and services. We expect that our portfoliosecurities          will continue to show growth and the Fund will continue its goodlong-term          performance. 

**MANAGEMENT FEE CALCULATIONS**          The Sextant International Fund calculates part of its management fee          based on a comparison of the Fund’s return to the average return          of the Morningstar fund category "Foreign Stock". AtNovember          30, 2001, the one-year return for this category average was -15.02%.          Because the Fund's 12-month return outperformed this average by less          than 1% at November 30, 
*24* *November              30, 2001 Annual Report*
2001, the adviser earned no bonus or penalty performance          fee for the month of December 2001. The Fund's total expense ratiodecreased          to 1.17% from 1.20% the prior year. 

**COMPARISON TO INDEX**          Comparison of any fund to an index must be made bearing in mind that          the Index is unmanaged, and expense-free. The graph below compares$10,000          invested in the Fund at its inception, compared to a similar amount          invested in the AMEX International Index. This capitalization-weighted          index averages 50 American Depository Receipts (ADRs) of largeworldwide          companies, and reflects the types of securities in which SextantInternational          Fund invests. The graph shows that a $10,000 investment made onSeptember          1995 would have risen to $12,270 in the Fund and $15,886 in the Index.          The returns shown do not reflect the deduction of income taxes that          an investor could pay on income received or the sale of profitableinvestments.          Past performance is no guarantee of future results. 

 

 

 

**Sextant International Fund vs. AMEX International Index**

*(graph omitted)*

 
*November 30,              2001 Annual Report* *25****NOTES                TO FINANCIAL STATEMENTS***
**Note 1 -*Organization***                Saturna Investment Trust (the "Trust") was established                under Washington State Law as a Business Trust on February 20,                1987. The Trust is registered as a no-load, open-end seriesinvestment                company under the Investment Company Act of 1940, as amended.                Five portfolio series have been created to date: SextantShort-Term                Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund, and                Sextant International Fund (the "Funds"), and Idaho                Tax-Exempt Fund, distributed through a separate prospectus and                the results of which are contained in a separate report.              

**Note 2 -*Significant                Accounting Policies*****The following is a summary of the significantaccounting                policies followed by the Funds.              

***Investments:***Securities traded on a national exchange or the national                over-the-counter market system are valued at the last sale price                or, in the absence of any sale on that date, the closing bidprice.                Other securities traded in the over-the-counter market arevalued                at the last bid price. Fixed-income securities for which there                are no publicly available market quotations are valued using a                matrix based on maturity, quality, yield and similar factors,                which are compared periodically to multiple dealer bids andadjusted                by the adviser under policies established by the Trustees.              
The cost of securities is the same for accounting                and Federal income tax purposes. Securities transactions arerecorded                on trade date. Realized gains and losses are recorded on theidentified                cost basis.              
***Income and Expenses:***Interest income is reduced by the amortization of bond                premiums, on a constant yield-to-maturity basis from purchase                date to maturity. Interest income is increased by accretion only                for bonds underwritten as original issue discounts. Marketdiscounts                are recorded as realized gains upon disposition. Cash dividends                from equity securities are recorded as income on the ex-dividend                date. 

Expenses incurred by the Trust on behalf of the                Funds (e.g., professional fees) are allocated to the Funds on                the basis of relative daily average net assets. The Adviser has                agreed to certain limits on expenses, as described below.              

***Income taxes:***The Funds have elected to be taxed as regulatedinvestment                companies under the Internal Revenue Code and distributesubstantially                all of their taxable net income and realized net gains oninvestments.                Thus, no provision for Federal income taxes is required.            
               

***Dividends and distributions toshareowners:***Dividends and distributions to shareowners are recorded                on the ex-dividend date. For the Sextant Short-Term Bond Fund                and Sextant Bond Income Fund, dividends are paid daily anddistributed                on the last business day of each month. For the Sextant Growth                Fund and Sextant International Fund, dividends are payable at                the end of each November. Shareowners electing to reinvestdividends                and distributions purchase additional shares at the net asset                value on the payable date.              
***Use of Estimates:***The preparation of financial statements in conformity                with accounting principles generally accepted in the UnitedStates                of America requires management to make estimates and assumptions                that affect the reported amounts of assets and liabilities at                the date of the financial statements. Actual results coulddiffer                from those estimates.              
**Note 3 -*Transactions                with Affiliated Persons*****Under a contract approved by shareowners on September                28, 1995, Saturna Capital Corporation provides investmentadvisory                services and certain other administrative and distributionservices                to conduct Trust business. Each of the Funds pays the Adviser                a base Investment Advisory and Administrative Services Fee of                .60% of average net assets per annum, payable monthly. The base                Advisory Fee is subject to adjustment up or down depending on                the investment performance of the Fund relative to a specified                index. No performance adjustment is applicable during the first                year any Agreement is in place. The Adviser has voluntarilyundertaken                to limit expenses of Sextant Bond Income Fund and SextantShort-Term                Bond Fund to 0.60% through March 31, 2002 and waives itsinvestment                advisory and administrative fee as to either Fund completely so                long as assets of that Fund are less than $2 million. 
                For the year ended November 30, 2001, Sextant Bond Income Fund                and Sextant Growth Fund incurred advisory expenses of $9,497 and                $16,109, respectively. Sextant International Fund incurredadvisory                expenses of $9,444 and Sextant Short-Term Bond Fund incurredadvisory                expenses of $10,967.              
In accordance with the expense waiver noted above,                for the year ended November 30, 2001, Saturna Capital waived$7,135                of the Sextant Short-Term Bond Fund advisory fee and $9,497 of                that of Sextant Bond Income Fund.              
In accordance with the Funds' custodian agreements                with National City Bank, for the year ended November 30, 2001,                custodian fees for Bond Income, Short-Term Bond, Growth, andInternational,                were $818, $2,118, $2,348, and $2,563, respectively. Thecustodian                waived its fees for earnings credits.              
               
             *26* *November                30, 2001 Annual Report*
         
               
One trustee, who also serves as the president of                the Trust, is a director and president of the Adviser. The four                unaffiliated trustees receive $100 per Board or committeemeeting                attended. On November 30, 2001, the turstees, officers and their                immediate families as a group owned 19.1%, 28.6%, 14.6% and34.8%                of the outstanding shares of Bond Income, Short-Term Bond,Growth                and International, respectively.              
The Trust acts as a distributor of its own shares,                except in those states in which Investors National Corporation                (a subsidiary of Saturna Capital Corporation) is itselfregistered                as a broker-dealer and acts as distributor without compensation.              
Investors National Corporation is the primarystockbroker                used to effect portfolio transactions for Sextant Growth Fund                and Sextant International Fund, and was paid $1,644 and $790,                respectively in commissions at discount rates during the year                ended November 30, 2001.              
**Note 4 -*Federal Income                Taxes*****At November 30, 2001, Bond Income had capital loss                carryforwards of $82,446, of which $47,748 expires in 2002,$15,110                expires in 2003, $11,717 expires in 2005 and $5,730 expires in                2007, and $2,141 expires in 2009; Short-Term Bond had capital                loss carryforwards of $37,133 of which $6,971 expires in 2004,                $1,405 expires in 2005, $4,467 expires in 2007, $9,191, and$15,099                expires in 2009; and International had a capital losscarryforward                of $74,427, of which $1,570 expires in 2008 and $72,857 expires                in 2009, subject to regulation. Prior to their expiration, such                loss carryforwards may be used to offset future net capitalgains                realized for federal income tax purposes.              
**Note 5 -*Investments*****At November 30, 2001, the net unrealized gain (loss)                on investments for Bond Income, Short-Term Bond, Growth andInternational                were $48,912, $75,853, $1,172,350, and $135,270, which consists                of unrealized gains of $62,050, $77,095, $1,402,793, and$394,202,                and unrealized losses of $13,138, $1,242, $230,443, and$258,932,                respectively.              
During the year ended November 30, 2001, BondIncome                purchased $836,176 of securities and sold $450,904 ofsecurities.                Comparable figures for Short-Term Bond are $565,148 purchased                $987,863 sold; for Growth $404,811 and $274,072; and forInternational,                $78,905 and $117,657.              
               
 

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**PRIVACY STATEMENT**

*At Saturna Capital, we understand theimportance                  of maintaining the privacy of your financial information. To                  that end, we want to insure that we protect theconfidentiality                  of any personal information you share with us.                  We collect personal information about you from information we                  receive from you on applications and other forms and fromtransactions                  or trades placed with us. Please be assured that except toadminister                  a transaction with an affiliated third party upon yourrequest,                  we do not disclose any personal information about ourcustomers,                  or our former customers, to anyone, except as may be required                  by law. We maintain our own technology resources to minimize                  the use of outside service providers.                  Additionally, Saturna Capital restricts access to personalinformation                  about you to those employees who need to know that information                  to provide products or services to you. We maintain physical,                  electronic, and procedural safeguards that comply with federal                  standards to guard your personal information. If you havefurther                  questions or concerns about the security or privacy of theinformation                  we receive from you, please call us at 1-888/732-6262.*

 

 

 

 

 

 

 

 

 

 

 
*November 30,              2001 Annual Report* *27*
         
**Web: http://www.saturna.com                  E-mail: sextant@saturna.com**

 

 

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SaturnaCapitalMutual Funds

 

1300 N. State Street                    Bellingham WA 98225-4370 

1-800/SATURNA                    (800/728-8762)*1-888/732-6262 for automated assistance,                    including fund prices*

  

Thisreport                  is issued for the information of the shareoweners of the Fund.                  It is not authorized for distribution to prospective investors                  unless it is accompanied or preceded by an effectiveprospectus                  relating to the securities of the Fund. Idaho Tax-Exempt Fund                  is a series of Saturna Investment Trust.

 

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 SEXTANT                          Mutual Funds 
 

 

**SHORT-TERM                          BOND**

**BONDINCOME**

**GROWTH**

**INTERNATIONAL******

 

 

**ANNUAL                          REPORT****November 30, 2001**