Sextant

**Mutual Funds**

(Graphic Omitted)

*Fellow Shareowners:*

The "New Economy" fantasy era is over, and with it    the long bull market. Much has changed in the market in the last year.Technology    is a wreck, profits turned to losses, and greed to fear. Consumer confidence    has fallen with declines in portfolio values, capital spending is off,productivity    is decreasing, and corporate earnings are in a tailspin. Unemployment isjumping,    and a major recession looms.  
 Faced with this worsening outlook, the Federal Reservereversed    last year's trend to higher interest rates that caused much of the pain.Now,    stimulative interest rate cuts and federal income tax rate reductions are    the hopes to re-energize the US economy. Recovery will take longer than most    expect.  
Prudent investors do well to remember that change is the only    real constant. Today's choppy economic seas will again be soothed by the"invisible    hand" of free economic markets. Change is the rationale for our four    distinctly different Sextant funds, which allow investors to choose thevariable    returns of the domestic and international stock markets, long-term bond, or    the safety of short-term bonds.  
As would be expected for the six and twelve months ended May    31st, the Short-Term Bond Fund and Bond Income Fund easily outdistanced the    Growth and International Funds. Relative performance of the Sextant Funds    continued their long-term record of being above average, as both Growth and    International Funds outperformed their peers for the twelve months, as did    the Bond Income Fund.  
Our Sextant Funds employ a "fulcrum" advisory fee    structure that rewards or penalizes Saturna Capital for investment results.    For the six and twelve months ended May 31, 2001 comparative total returns    are:  
   Sextant Fund6-month           Total Return12-month          Total Returnvs. Morningstar12-month          Total ReturnShort-Term Bond+3.85%+8.23%Short-Term Bonds+10.14%)Bond Income+5.52%+13.03%Long-Term Bonds+12.87%Growth-6.61%-4.01%Domestic Growth-4.26%International-5.873%-16.13%Foreign Stock-18.08%)
While our funds remain small, growing awareness of the Sextant    Funds and their excellent services means the assets in the four funds are    up from last May 31st. it has been an exciting year so far and we arelooking    forward to the second half. Thank you for investing your money withours.

Respectfully,

**Nicholas Kaiser,*******President*****Phelps McIlvaine,*Vice President***(Manager, Sextant Growth;        Sextant International)(Manager, Sextant Bond Income;        Sextant Short-Term Bond)
July 11, 2001
*May 31, 2001Semi-Annual        Report* *1*
  
(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**  **Aerospace - Aircraft (3.6%)**    AMcDonnell Douglas /Boeing Capital9.25% 04/1/2002 $75,000  $77,580  **Auto/Truck Manufacturing (4.3%)**    A-Daimler Crysler Corporation6.90% 9/1/200490,00091,629  **Banking (7.7%)**    A+Australia & New Zealand Bank6.25% 2/1/2004 85,000 85,663 A-Washington Mutual Financial Corp.8.25% 6/15/200575,000  80,633  SUB-TOTAL  160,000  166,296  **Broadcasting (2.3%)**    AWalt Disney Company8.00% 1/26/201550,00050,325  **Building Products (3.4%)**    A-Lowes Companies7.5% 12/15/200570,00073,227  **Chemicals (3.1%)**    A-Praxair Inc.6.15% 4/15/2003 65,000  65,461  **Computer (7.1%)**    AA-Hewlett Packard Co.7.15 % 6/15/200570,00072,072 BBB+Sun Microsystems7.35% 8/15/200480,00081,056  SUB-TOTAL 150,000153,128  **Cosmetics & Toiletries (3.5%)**    BBBDial Corporation6.625% 6/15/2003 75,000  75,750  **Finance & Insurance (7.1%)**    A-Lincoln National Insurance.7.25% 5/15/2005 100,000 102,720 A+Morgan Stanley9.375% 6/15/2001 50,000  49,735  SUB-TOTAL  150,000  152,455  **Food (2.4%)**    A-Coca Cola Enterprises7.875% 2/1/2002 50,000  50,830 ********2** *May 31, 2001          Semi-Annual Report*(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**  **Oil & Gas (14.%)**    AA+Amoco Canada7.25% 12/1/2002 70,000  71,890 A-Columbia Energy Corp.6.61% 11/28/2002 50,000  50,340 A-Fina Oil & Chemical6.875% 7/15/2001 75,000  74,723 BBB+Union Oil of California7.20% 5/15/2005 100,000  103,560  SUB-TOTAL  295,000  300,513  **Machinery (11.6%)**    ADeere6.55% 7/15/200490,00091,152 AEaton Corp.6.95% 11/15/200485,00086,861 A-Ingersol Rand Corp6.38% 11/19/2001 70,000  70,105  SUB-TOTAL 245,000248,118  **Medical - Health Maintenance Org. (10.5%)**    AAAAetna Services6.75% 8/15/2001 70,000  69,944 AAmerican Home Products7.90% 2/15/200575,00078,713 ACardinal Health Inc.6.50% 2/15/200475,00076,297  SUB-TOTAL 220.000224,954  **Retailing (2.3%)**    BBBSafeway Corp.6.05% 11/15/2003 50,000  50,170  **Telecommunications (4.6%)**    BBB+Sprint Capital Corp.5.875% 5/1/2004 100,000  97,890  **Transportation - Air Freight (2.6%)**   BBBFederal Express Corp.9.875% 4/1/2002 55,000  56,584 AAA**U.S. Government (3.9%)**     US Treasury Note6.00% 8/15/2004 80,000  83,150  **Total Investments (94%)**(Cost = $1,982,890) $1,980,000 2,018,060  Other Assets (net of liabilities) (6%)  129,610  **Total Net Assets (100%)**  2,147,670  **Ratings are the lesser of S&P or Moody's(unaudited)*    *May 31, 2001Semi-Annual        Report* *3*  |  **FINANCIALHIGHLIGHTS** 
**SEXTANTSHORT-TERM          BOND FUND**(Graphic          Omitted)Selected data per share of capital stock outstandingthroughout        the year:         For the year ended November 30,  
Period ended          May 31, 2001
20001999199819971996**Net asset value at beginning of period** **$4.95****$4.92****$5.04****$4.99****$5.00****$5.03** *Income from investment operations*         Net Investment Income 0.16 0.27 0.26  0.27  0.27  0.25  Net gains or losses on securities        (both realized and unrealized) 0.03 0.03 (0.12) 0.05  (0.01) (0.03)Total from investment operations  0.19 0.30 0.14  0.32  0.26  0.22  *Less distributions*       Dividends (from net investment income) (0.14) (0.27) (0.26) (0.27) (0.27) (0.25) Distributions (from capital gains) 0.00 0.00 0.00 0.00 0.00 0.00Total distributions  (0.14) (0.27) (0.26) (0.27) (0.27) (0.25)**Net asset value at end of period** **$5.00****$4.95****$4.92****$5.04****$4.99****$5.00****Total Return** **3.85%****6.20%****2.88%****6.67%****5.45%****4.85%**Ratios / Supplemental Data       Net assets ($000), end of period $2,148$2,555$1,795 $1,908 $2,508 $2,016 Ratio of gross expenses to average net assets 0.30%0.61%0.47%0.48%0.60%0.85%Ratio of net investment income to average net assets 2.76%5.45%5.22%5.57%5.58%6.30%**Portfolio turnover rate** **20%****12%****21%****71%****47%****100%**For the above periods, 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 netaccost        would be .24%, .41%, .57%, .44%, .40%, and .52%respectively.
   
**STATEMENT OF          ASSETS AND LIABILITIES**
*As    of May 31, 2001*******Assets**     Investments (Cost $1,982,890)  $2,018,060  Cash  92,858  Interest Receivable  36,998   Total Assets   2,147,916**Liabilities**     Other Liabilities 246   Total Liabilities  246**Net Assets**   $2,147,670     **Fund Shares Outstanding**    429.427     **Analysis of Net Assets**     Paid in Capital (unlimited shares authorized, without par        value) 2,147,812   Accumulated net realized loss on investments  (35.312)  Unrealized net appreciation to Fund sharesoutstanding 35,170   Net Assets applicable to Fund shares outstanding   $2,147,670     **Net Asset Value, Offering and Redemption price pershare**   **$5.00**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*4* *May 31, 2001          Semi-Annual Report*(Graphic        Omitted)**SEXTANTSHORT-TERM        BOND FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31, 2001*      **Investment Income**    Interest income$69,013  Amortization of bond premium(6,180)  Miscellaneous income600  Accretion170   Gross investment income 63,603    **Expenses**    Investment Advisor and administration fee6,190  Professional fees1,549  Custodian fees1,087  Printing and postage680  Filing and registration fees 606  Other expenses1,035   Total gross expenses11,147  Less: Advisory fees waived(3,834)  Less: Custodian fees waived(1,087)   Net expenses  6,226  Net Investment income 57,377    **Net realized gain (loss) on investments**    Proceeds from sales722,863  Less: Cost of securities sold (based on identifiedcost)737,627   Realized net gain (loss) (14,764)    **Unrealized gain on investments**    End of period35,170  Beginning of period(5,081)  Increase in unrealized gain for the period 40,251  Net realized and unrealized gain on investments 25,487   **Net decrease in net assets resulting fromoperations**  **$82,864****STATEMENT OFCHANGES        IN NET ASSETS** 
**SEXTANTSHORT-TERM          BOND FUND**(Graphic          Omitted)****  Period endedYear ended  May 31, 2001Nov. 30, 2000**INCREASE IN NET ASSETS**   **From Operations:**    Net investment income $57,377 $119,063 Net realized loss on investments(14,764)(9,191) Net increase in unrealized appreciation40,25124,047 Net increase in net assets from operations 82,864 133,919    **Dividends to shareowners from:**    Net investment income(58,259)(119,079) Capital gains distributions00  Total Distributions(58,259)(119,079)    **Fund share transactions:**    Proceeds from sales of shares280,553963,173 Value of shares issued in reinvestment of dividends57,540118,846  338,0931,082,019 Cost of shares redeemed(769,673)(337,611) Net increase (decrease) in net assets from sharetransactions(431,580)744,408**Total increase (decrease) in net assets**  (406,975) 759,248**NET ASSETS**    Beginning of period2,554,6451,795,397 End of period2,147,6702,554,645**Shares of the fund sold and redeemed**    Number of shares sold56,186196,084 Number of shares issued in reinvestment of dividends11,51524,197  67,701220,281 Number of shares redeemed(154,726)(68,785)**Net increase (decrease) in number of sharesoutstanding** **(87,025)****151,496**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*May 31, 2001Semi-Annual        Report* *5*(Graphic        Omitted)**SEXTANT        BOND INCOME FUND** 
**INVESTMENTS****Rating****Issuer********Coupon/Maturity****Face Amount****Market Value** ***Banking (12.7%)***    A+Chase Manhattan 7.125% 6/15/2009$50,000 51,495ACiticorp 7.25% 10/15/201150,000 51,720A-Comerica Bank 7.125% 12/1/201350,000 48,214AA-Norwest Financial 6.85% 7/15/2009 50,000  49,905  SUB-TOTAL 200,000 201,334 ***Building Products (3.7%)***    BBBMasco Corporation 7.125% 8/15/201360,00059,292 ***Chemicals (3.4%)***    A-Air Products & Chemicals 8.75% 4/15/202150,00054,270 ***Computer (4.8%)***    ADell Computer 6.55% 4/15/2008 30,000  28,797AA-IBM Corp. 6.30% 5/27/201150,00047,350  SUB-TOTAL 80,00076,147 ***Diversified Financial Services (4.3%)***    AAAGeneral Electric Capital Corp. 8.125% 5/15/201260,00067,554 ***Electric Utilities (6.3%)***    A+Alabama Power 7.75% 2/1/202350,000 49,285BBBCommonwealth Edison  7.50% 7/1/2013 50,000  49,820  SUB-TOTAL  100,000  99,105 ***Electronics (3.0%)***    BBB+Koninlijke Phillips Electronics  7.25% 8/15/2013 50,000  48,029 ***Food (6.5%)***    BaaConagra 7.875% 9/15/201050,00051,850A+Hershy Foods Co. 6.95% 8/15/201250,00051,150  SUB-TOTAL 100,000103,000 ***Insurance (3.3%)***    AAllstate 7.50% 6/15/2013 50,000  53,000 ***Investment Finance (6.3%)***    AMorgan Stanley Dean Witter 6.75% 10/15/2013 50,000  48,940BBBPaine Webber Group 7.625% 2/15/2014 50,000  51,067  SUB-TOTAL  100,000  100,007
 
*6* *May 31, 2001          Semi-Annual Report*
 
(Graphic        Omitted)**SEXTANT        BOND INCOME FUND** 
**INVESTMENTS****Rating****Issuer********Coupon/Maturity****Face Amount****Market Value** ***Machinery (3.0%)***    BBBCaterpillar Inc. 9.375% 8/15/2011 40,000 46,976 ***Medical Supplies (2.6%)***    A+Becton Dickinson 7.15% 10/1/2009 40,000  40,648 ***Oil & Gas (6.4%)***    ANorsk Hydro A/S (Yankee) 7.50% 10/1/201650,00052,520ATexaco Capital 8.625% 6/30/2010 40,000  49,426  SUB-TOTAL 90,000101,946 ***Retailing (13.7%)***    A+Dayton Hudson (Target Stores) 10.00% 1/1/201150,00061,410ALowe's Corp. 8.25% 6/1/201050,00054,130A+,May Department Stores Corp. 8.00% 7/15/201250,00054,865AAWal-Mart Stores 7.25% 6/1/201345,00047,200   SUB-TOTAL195,000217,605 ***Telecommunications (3.2%)***    A+GTE 6.90% 11/1/2008 50,000  50,120 ***Transportation (6.4%)***    AGeneral Motors 7.70% 4/15/201650,00050,915A-US Freightways Corp. 8.5% 4/25/2010 50,000  50,977  SUB-TOTAL 100,000101,892 ***US Government (6.1%)***    AAAUS Treasury Bond 7.25% 5/15/201685,00096,860***Total Investments (95.7%)***  (Cost = $1,511,957)$1,450,000 1,517,785Other Assets (net of liabilities) (4.3%)    67,893***Total Net Assets (100%)***    $1,585,678
**Ratings are the lesser of S&P orMoody's    (unaudited)*
*May 31, 20001Semi-Annual        Report* *7*******FINANCIAL HIGHLIGHTS** 
**SEXTANT BONDINCOME          FUND**(graphic          omitted)Selected data per share of capital stock outstandingthroughout        the year:        Period ended For the year ended November 30,   May 31, 200120001999199819971996**Net asset value at beginning of period** **$4.56****$4.59****$5.00****$4.83****$4.76****$4.91** *Income from investment operations*       Net investment income 0.15 0.29 0.30  0.29  0.30  0.30  Net gains or losses on securities         (both realized and unrealized) 0.10 (0.03) (0.41) 0.17  0.07  (0.12)Total from investment operations  0.25 0.26 (0.11) 0.46  0.37  0.18  *Less distributions*       Dividends (from net investment income)        Taxable (0.15) (0.29) (0.30) (0.29) (0.30) (0.30) Distributions (from capital gains) 0.00 0.00 0.00 0.00 0.00 (0.03)Total distributions  (0.15) (0.29) (0.30) (0.29) (0.30) (0.33)**Net asset value at end of period** **$4.66****$4.56****$4.59****$5.00****$4.83****$4.76****Total return** **5.48%****6.05%****(2.20)%****10.08%****8.24%****4.04%**Ratios/supplemental data       Net assets ($000), end of period  $1,586 $1,505 $885  $1,345 $1,092  $1,201 Ratio of expenses to average net assets 0.16%0.35%0.40%0.30%0.47%0.63%Ratio of net investment income to average net assets 3.32%6.58%6.31%6.24%6.85%5.96%**Portfolio turnover rate********25%****0%****0%****51%****75%****77%**        For each of the above periods, all or a portion of the        operating expenses were waived. If these costs had not been waived,the        increase to the ratio of expenses to average monthly net assets would        be .33%, .64%, .66%, .61%, .63%, and .70%.
**STATEMENT OF          ASSETS AND LIABILITIES**
   *As of May 31, 2001*   **Assets**    Bond Investments (Cost $1,511,957)$1,517,785  Cash36,177  Interest Receivable29,083  Insurance Reserve Premium1,221    Total Assets 1,584,266    **Liabilities**    Other Liabilities(1,412)   Total Liabilities (1,412)**Net Assets**  **$1,585,678**    **Fund Shares Outstanding**  **340,138**    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par        value)1,677,156  Accumulated net realized loss on investments(97,306)  Unrealized net appreciation to Fund sharesoutstanding5,828   Net Assets applicable to Fund shares outstanding $1,585,678**Net Asset Value, Offering and Redemption price pershare**  **$4.66**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*8* *May 31, 2001          Semi-Annual Report*(graphicomitted)**SEXTANT BOND INCOME FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31, 2001*  **Investment Income**    Interest income$53,127  Amortization of bond premium(1,378)  Accretion11  Miscellaneous income53   Gross investment income  51,813**Expenses**    Investment advisor and administration fee4,459  Professional fees900  Filing and registration fees453  Custodian fees462  Printing and postage431  Other expenses611   Total gross expenses7,316  Less: Advisor fees waived(4,459)  Less: Custodian fees waived(462)   Net expenses 2,395  Net investment income  49,418**Net realized gain on investments**    Proceeds from sales359,560  Less: Cost of securities sold based on identified cost369,320   Realized net loss  (9,760)**Unrealized gain on investments**    End of period5,828  Beginning of period(40,501)  Increase in unrealized gain for the period  46,329  Net realized and unrealized gain on investments  36,569**Net increase in net assets resulting fromoperations**  **$85,987**
**STATEMENT OFCHANGES        IN NET ASSETS**  Period endedYear ended  May 31, 2001Nov. 30, 2000**From Operations:**    Net investment income  $49,418 $76,637 Net realized gain (loss) on investments(9,760)0 Net increase in unrealized appreciation46,3294,544 Net increase in net assets from operations 85,987 81,181    **Dividends to shareowners from:**    Net investment income(50,236)(76,637) Capital gains distributions0 0   Total Distributions(50,236)(76,637)    **Fund share transactions**    Proceeds from sales of shares192,590678,581 Value of shares issued in reinvestment of dividends49,58874,941  242,178753,522 Cost of shares redeemed(197,421)(138,153) Net increase in net assets from share transactions44,757615,369**Total increase in net assets** **$80,508****$619,913****NET ASSETS**    Beginning of period1,505,170885,257 End of period 1,585,678 1,505,170    **Shares of the fund sold and redeemed**    Number of shares sold41,351151,874 Number of shares issued in reinvestment of dividends10,61816,686  51,969168,560 Number of shares redeemed(42,274)30,840**Net increase in number of shares outstanding** **9,695****137,720**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*May 31, 2001Semi-Annual        Report* *9***
  
**INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)**Issue****Number of Shares****Cost****Market Value** **Common Stocks (92.9%)**    ***Banking (13.8%)***    Convergys2.500$101,378$102,750 Frontier Financial 4,000  90,207  93,640 JP Morgan Chase & Co.1,50085,43373,725 Washington Mutual 6,750 44,124 240,435  SUB-TOTAL  321,142 510,550 ***Computers (15.6%)***    Adobe Systems 4,800 50,490 190,896 Apple Computer* 4,000  67,473 79,800 Artisoft* 8,000  120,006 25,760 Intuit* 1,500  76,604  48,090 3Com* 1,225  6,248 6,811 Oracle*  8,000 28,059 122,400 Phoenix Technologies Ltd.* 3,062 29,149 40,265 Symbol Technologies 2,50062,91364,125  SUB-TOTAL  440,942 578,147 ***Construction (4.5%)***    Building Materials Holding* 4,000  44,171  53,800 Weyerhaeuser 2,000  93,867 114,420  SUB-TOTAL  138,038 168,220 ***Electronics (.5%)***    Agilent Technologies*1,20057,82840,248 FLIR Systems* 5,000 50,676 80,250 Intel1,20081,33832,412   SUB-TOTAL   189.,842 152,910 ***Hotels & Motels (2.1%)***    Westcoast Hospitality* 12,000  92,520  76,800 ***Investments (12.5%)***    Neuberger Berman1,00080,10577,430 Schwab (Charles) 20,415  9,117  383,802   SUB-TOTAL   89,222 461,232 **10** *May 31, 2001          Semi-Annual Report*****INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)**Issue****Number of Shares****Cost****Market Value** ***Machinery (1.1%)***    Regal-Beloit  2,000  52,106  40,400 ***Medical (18.7%)***    Affymetrix* 2,000  26,863 78,500 Immunex* 6,000 34,598 94,800 Ligand Pharmaceuticals 5,000  56,430  66,000 Lilly (Eli) 800 77,567 67,760 Pharmaceutical Product Development* 12,000 107,478 385,080   SUB-TOTAL   302,936 692,140 ***Metal Ores (1.6%)***    Phelps Dodge 1,330  76,218  60,116 ***Oil & Gas Production (5.0%)***    Noble Drilling* 2,000  14,212  85,400 Williams Companies 2,500  70,237 98,500  SUB-TOTAL  84,449 183,900 ***Publishing (1.3%)***    Wiley (John) & Sons, Class A* 2,400  47,112  48,384 ***Retail (7.2%)***    Saks* 4,000 56,357 46,160 Target2,00048,09475,600 Whole Foods Market* 2,500  74,348  143,175  SUB-TOTAL  178,799 264,935 ***Telecommunications (0.2%)***    Williams Communication Group*2,0559,7318,631 ***Transportation (5.2%)***    Airborne Inc. 5,000 60,308 54,450 Southwest Airlines6,00090,163120,000 Trinity Industries 800  22,6587 18,000  SUB-TOTAL  173,128 192,450      ***Total Investments (92.9%)*** $2,196,187 3,438,815 Other Assets (net of liabilities) (7.1%)   263,201 ***Total Net Assets (100%)***   $3,702,016      **non-income producing*    *May 31, 2001Semi-Annual      Report* *11*
 
(graphicomitted)**SEXTANT GROWTH FUND** 
**FINANCIALHIGHLIGHTS******Selected data per share of capital stock outstandingthroughout      the year:       Period ended  For the year ended Nov 30,  May 31, 200120001999199819971996**Net asset value at beginning of period** **$13.16****$12.68****$9.29****$9.58****$7.92****$7.42** *Income from investment operations*       Net investment income (0..02) (0..07) (0.06) 0.02  0.01  0.00 Net gains or losses on securities         (both realized and unrealized) (0.85) 1.36 4.26  (0.09) 2.41  0.50 Total from investment operations  (0.87) 1.29 4.20  (0.07) 2.40  0.50  *Less distributions*       Dividends (from net investment income) 0.00 0.00 (0.14) (0.02) (0.01) 0.00 Distributions (from capital gains) 0.00 (0.81) (0.67) (0.20) (0.73) 0.00Total distributions  0.00 (0.81) (0.81) (0.22) (0.74) 0.00**Net asset value at end of period** **$12.29****$13.16****$12.68****$9.29****$9.58****$7.92****Total Return** **(6.61%)****10.16%****44.76%****(0.97)%****30.30%****6.74%**Ratios / Supplemental Data       Net assets ($000), end of period $3,702$3,862$3,116 $2,139 $2,188 $1,616 Ratio of gross expenses to average net assets 0.47%1.05%1.12%0.66%1.04%0.95%Ratio of net investment income to average net assets  (0.19)%(0..51)%(0.50)%0.19%(0.12)%0.01%**Portfolio turnover rate** 0%20%28%41%25%32%                **SEXTANT GROWTHFUND** 
**STATEMENT OFASSETS        AND LIABILITIES**(Graphic        Omitted)*****As of May 31, 2001*   **Assets**    Investments (Cost $2,196,187)$3,438,815  Cash259,560  Dividends Receivable1,324  Insurance Reserve Premium1,215   Total Assets 3,700,914    **Liabilities**    Other Liabilities(1,102)   Total Liabilities (1,102)    **Net Assets**  **$3,702,016**    **Fund Shares Outstanding**  **301,055**    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par      value)$2,413,089  Accumulated net realized gain on investments46,299  Unrealized net appreciation to Fund shares outstanding1,242,628  Net Assets applicable to Fund shares outstanding  $3,702,016   **Net Asset Value, Offering and Redemption price pershare**  **$12.29***(The accompanying notes are an integral part of these financialstatements)***12** *May 31, 2001        Semi-Annual Report*
 

**STATEMENT OFOPERATIONS**
*For the Semi-Annual period ended May 31, 2001*
        **Investment Income**     Dividend income $10,375  Miscellaneous income 143   Gross Investment Income   10,518     **Expenses**     Investment Advisor and administration fee 11,171  Professional fees 2,615  Other expenses 1,714  Custodian fees 1,334  Printing and postage 1,273  Filing and Registration fees  637   Total gross expenses 18,744  Less: Custodian fees waived (1,334)   Net expenses  17,410  Net investment income   (6.892)     **Net realized gain on investments**     Proceeds from sales 11,661  Less: cost of securities sold based on identified cost 23,478   Realized net loss  (11,817)     **Unrealized gain on investments**     End of period 1,242,628  Beginning of period 1,476,805  Decrease in unrealized gain for the period  (234,177)  Net realized and unrealized loss on investments  (245,994)    **Net decrease in net assets resulting fromoperations**   **$(252,886)**(Graphic      Omitted)**STATEMENT OFCHANGES      IN NET ASSETS** 
**SEXTANT        GROWTH FUND******  Period endedYear ended  May 31, 2001Nov. 30, 2000**INCREASE IN NET ASSETS**   **From Operations:**    Net investment income (loss) $(6,892) $(20,519) Net realized gain (loss) on investments(11,817)210,239 Net increase (decrease) in unrealized appreciation268,323 738,243  Net increase (decrease) in net assets from operations (252,886) 282,096    **Dividends to shareowners from:**    Net investment income0 0 Capital gains distributions0 (223,550) Total Distributions0 (223,550)    **Fund share transactions**    Proceeds from sales of shares238,437759,028 Value of shares issued in reinvestment of dividends0 222,056  238,437981,084 Cost of shares redeemed(145,837)(293,378) Net increase in net assets from share transactions92,600687,706**Total increase (decrease) in net assets** **$(160,286)****$746,252**    **NET ASSETS**    Beginning of period3,862,3023,116,050 End of period3,702,0163,862,302    **Shares of the fund sold and redeemed**    Number of shares sold19,03250,682 Number of shares issued in reinvestment of dividends0 16,874  19,03267,556 Number of shares redeemed(11,521)(19,692)**Net increase in number of shares outstanding** **7,511****47,864**
*(The accompanying notes are an integral part of these financialstatements)*
***May        31, 2001 Semi-Annual Report*** ****13**
  
******INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)**Issue********Number of Shares****Cost****Market Value****Country****Common Stocks (79.0%)**     ***Aircraft (3.8%)***     Embraer Aircraft ADR 1,500$38,169$62,100Brazil***Banking and Financial (12.6%)***     Aegon NV ADR 1,22411,51232,766NetherlandsAustralia and New Zealand Bank ADR 50010,87519,450AustraliaAXA ADS 1,00031,16528,350FranceBanco Bilbao Vizcaya ADS 1,8007,70224,714SpainING Groep ADS 70036,13445,395NetherlandsToronto-Dominion Bank 1,40018,15936,358Canada SUB-TOTAL 115,547187,033 ***Building Materials (3.9%)***     C R H plc ADR 2,00023,07534,500IrelandHanson plc ADR 80024,57428,376UK SUB-TOTAL 47,64962,876 ***Computers (12.9%)***     Business Objects ADS* 6,00019,570191,460FranceDassault Systems ADR 40013,87518,000France SUB-TOTAL 33,445209,460 ***Consumer Products (3.2%)***     Coca-Cola Femsa ADS 1,5009,75033,525MexicoGucci Group 20010,92518,066Italy SUB-TOTAL 20,67551,591 ***Country Funds (1.7%)***     Austria Fund 2,00016,78413,020AustriaIrish Investment Fund 1,08212,62614,077Ireland SUB-TOTAL 29,41027,097 ***Electronics (3.5%)***     ASAT Holdings ADR 2,00018,33810,360Hong KongEpcos AG ADS 50034,20630,675GermanySony ADR 20023,07715,620Japan SUB-TOTAL 75,62156,655 ***Forestry (0.25)***     Rubicon Limited* 12,0001,8652,850New Zealand***Medical-Drugs (3.7%)***     Aventis ADS 50815,85937,887FranceGlaxo Wellcome plc ADR 4009,80021,876UK SUB-TOTAL 26,65959,763 ***Metals & Mining (3.6%)***     Potash Corp of Saskatchewan 30021,16418,315CanadaRio Tinto plc ADS 50031,17539,700UK SUB-TOTAL 52,33958,015 
**14** *May 31, 2001        Semi-Annual Report*******INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)**Issue********Number of Shares****Cost****Market Value****Country*****Oil & Gas Production (5.2%)***     Petroleum Geo-Services ADS* 1,00010,97911,300NorwayRepsol-YPF ADR 2,00043,59236,180SpainTotal Fina Elf ADR 50021,86436,870France SUB-TOTAL 76,43584,350 ***Paper Products (1.4%)***     Metso ADS* 2,10022,80222,239Finland***Photographic Equipment (3.5%)***     Canon, Inc ADR  1,00023,42739,630JapanFuji Photo Film ADR 40010,05016,880Japan SUB-TOTAL 33,47756,510 ***Real Estate (2.8%)***     Intrawest  2,40041,34145,000Canada***Telecommunications (7.2%)***     BCE 90015,83022,842CanadaBrasil Telecom Participacoes SA ADR 601,3872,400BrazilBritish Sky Broadcasting ADS 30011,06318,675UKGilat Satellite Networks Ltd* 60035,8657,590IsraelNortel Networks 1,41282,96818,822CanadaPT Indosat ADR 1,00020,9528,400IndonesiaTele Norte Leste Participacoes ADR 3356,9335,310BrazilTelefonica ADS* 53312,05823,660SpainTelesp Celular Participacoes ADR 50024,8958,730Brazil SUB-TOTAL 211,951116,429 ***Transportation (6.2%)***     Canadian Pacific Ltd. 1,20034,10849,560CanadaCapstone Turbine* 1714,3185,621United StatesDesc ADR 2,70042,98120,925MexicoLan Chile ADS 2,50018,84524,250Chile SUB-TOTAL 100,252100,356 ***Utilities-Electric (4.0%)***     Enel ADR* 80035,37225,480ItalyEnersis ADR 1,10324,67618,255ChileKorea Electric Power ADS 2,00031,96121,100Korea SUB-TOTAL 92,00964,835 ***Utilities-Gas (0.6%)***     Transport de Gas del Sur ADR 1,50018,80810,395Argentina      **Total Investments (79.0%)**  $1,037,4541,277,554 Other Assets (net of liabilities) (21.0%)   340,249 **Total Net Assets (100%)**   $1,617,803       ** Non-income producing*     *May 31, 2001Semi-Annual      Report* *15*
 
**FINANCIAL HIGHLIGHTS** **SEXTANTINTERNATIONAL          FUND**(graphic          omitted)Selected data per share of capital stock outstanding            throughout the year:         For the year ended November 30,   
Period endedMay 31, 2000
20001999199819971996**Net asset value at beginning of period** **$8.52****$8.32****$6.81****$6.61****$5.87****$4.99** *Income from investment operations*       Net investment income 0.01 0.43 0.13  0.04  0.06 (0.03) Net gains or losses on securities (both realized and            unrealized) (0.51) 0.20 1.57  0.20  0.74 0.88Total from investment operations  (0.50) 0.63 1.70  0.24  0.80 (0.91) *Less distributions*       Dividends (from net investment income) 0.00 (0.43) (0.12) (0.04) (0.06)0.03 Distributions (from capital gains) 0.00 0.00 (0.07) 0.00 0.000.00Total distributions  0.00  (0.43) (0.19) (0.04) (0.06)0.03**Net asset value at end of period** **$8.02****$8.52****$8.32****$6.81****$6.61****$5.87****Total return** **(5.87)%****7.62%****24.90%****3.57%****13.58%****18.16%**Ratios/supplemental data       Net assets ($000), end of period $1,618$1,736$1,162 $881 $881 $695Ratio of expenses to average net assets 0.60%1.20%0.72%1.16%1.51%1.80%Ratio of net investment income to average netassets 0.17%4.74%1.74%0.54%0.93%0.60%**Portfolio turnover rate********3%****11%****17%****18%****9%****11%**        (graphic            omitted)**SEXTANTINTERNATIONAL            FUND** 
**STATEMENT              OF ASSETS AND LIABILITIES******    *As of May 31, 2001*       **Assets**     Investments (Cost $1,037,454) $1,277,554  Cash 336,448  Dividends Receivable 4,905   Total Assets  1,618,907    **Liabilities**    Other Liabilities 1,104  Total Liabilities 1,104    **Net Assets**  **1,617,803**   ******Fund Shares Outstanding**  **201,637**    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without            par value) 1,401,415  Accumulated net realized gain (loss) oninvestments (23,712)  Unrealized net appreciation to Fund sharesoutstanding240,100   Net Assets applicable to Fund shares outstanding $1,617,803    **Net Asset Value, Offering and Redemption price per            share**  **$8.02***(The accompanying notes are an integral part of these financialstatements)***16** *May 31,              2001 Semi-Annual Report*
 

**STATEMENT              OF OPERATIONS**
*For the Semi-Annual period ended               May 31, 2001*
       **Investment Income**    Dividend income (net Foreign Tax of $2,429)$12,811   Gross investment income  12,811**Expenses**    Investment Advisor and administration fee 6,044  Custodian fees 1,476  Printing and postage 1,106  Professional fees 1,086  Filing and Registration fees 995  Other expenses733  Total gross expenses 11,440  Less: Custodian fees waived (1,476)   Net expenses 9,964  Net investment income  2,847**Net realized gain on investments**    Proceeds from sales 71,397  Less: Cost of securities sold based on identifiedcost93,459   Realized net loss (22,062)**Unrealized gain on investments**    End of period 240,100  Beginning of period325,101  Decrease in unrealized gain for the period  (85,001)  Net realized and unrealized loss on investments  (107,063)    **Net decrease in net assets resulting fromoperations**  $(104,216)********SEXTANT INTERNATIONAL FUND** 
**STATEMENT              OF CHANGES IN NET ASSETS**(graphic              omitted)****  Period endedYear ended  May 31, 2001Nov. 30, 2000**INCREASE IN NET ASSETS**   **From Operations:**    Net investment income  $2,847 $82,879 Net realized loss on investments (22,062) (1,570) Net decrease in unrealized appreciation (85,001) (82,543) Net decrease in net assets from operations (104,216) (1,234)    **Dividends to shareowners from:**    Net investment income 0 (84,173) Capital gains distributions 0 0 Total Distributions 0 (84,173)    **Fund share transactions**    Proceeds from sales of shares 85,621 712,898 Value of shares issued in reinvestment ofdividends 0 83,581   85,621 796,4797 Cost of shares redeemed(100,045)(136,909) Net increase (decrease) in net assets from sharetransactions (14,424) 659,570**Total increase (decrease) in net assets** **$(118,640)****$574,163**    **NET ASSETS**    Beginning of period 1,736,443 1,162,280 End of period 1,617,803 1,736,443    **Shares of the fund sold and redeemed**    Number of shares sold 9,972 67,998 Number of shares issued in reinvestment ofdividends 0 9,810   9,972 77,808 Number of shares redeemed (12,131) (13,794)**Net increase (decrease) in number of sharesoutstanding** **(2,159)****64,014**
 
*(The accompanying notes are an integral part ofthese          financial statements)****May              31, 2001 Semi-AnnualReport*** *17*
**ADDITIONAL                PERFORMANCE INFORMATION**Average Annual              Returns (as of 6/29/2001, per regulatory requirement)  1                year 5                years10 years(Graphic Omitted)            Sextant Growth Fund-16.96%            14.82%            10.72%             Sextant International Fund-24.59%            9.00%            9.29%*Sextant Short-Term Bond Fund7.51%5.82% 5.45%*Sextant Bond Income Fund11.94%7.26%5.27%**
*Since inception, 9/28/95
**since inception, 3/1/93
Performance data quoted in this report represents past          performance and is no guarantee of future performance. The investment          return and principal value of investments in the Funds fluctuatedaily,          and an investor's shares when redeemed may be worth more or less than          the original cost. Morningstar, Inc. is an independent fundperformance          monitor. Rankings are determined monthly from total returns byMorningstar,          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.

 

**PRIVACYSTATEMENT**

At Saturna Capital, we understand the importance ofmaintaining          the privacy of your financial information. To that end, we want toinsure          that we protect the confidentiality 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 from transactions ortrades          placed with us. Please be assured that except to administer atransaction          with an affiliated third party upon your request, we do not disclose          any personal information about our customers, or our former customers,          to anyone, except as may be required by law. We maintain our owntechnology          resources to minimize the use of outside service providers.          Additionally, Saturna Capital restricts access to personal information          about you to those employees who need to know that information toprovide          products or services to you. We maintain physical, electronic, andprocedural          safeguards that comply with federal standards to guard your personal          information. If you have further questions or concerns about thesecurity          or privacy of the information we receive from you, please call us at          1-888 / 732-6262.
*18* *May 31,              2001 Semi-Annual Report*
  
***Notes                to Financial Statements***
***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.              
***UnauditedInformation*****The information in this interim report has not been                subject to independent audit.              
***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.                Therefore, no provision for Federal income taxes is required.              
 

 

***Dividends and distributions to shareowners:***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. 

***Transactions with AffiliatedPersons*****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, 2001 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 six months ended May 31, 2001, Sextant Bond Income Fund                and Sextant Growth Fund incurred advisory expenses of $4,459 and                $11,171, respectively. Sextant International Fund incurredadvisory                expenses of $6,044 and Sextant Short-Term Bond Fund incurredadvisory                expenses of $6,190.              
In accordance with the expense waiver noted above,                for the six months ended May 31, 2001, Saturna Capital waived                $3,834 of the Sextant Short-Term Bond Fund advisory fee and$4,459                of that of Sextant Bond Income Fund.              
In accordance with the expense waiver noted above,                for the six months ended May 31, 2000, Saturna Capital waived                $3,304 of the Sextant Short-Term Bond Fund advisory fee and$2,977                of that of Sextant Bond Income Fund.              
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 $288 and $218,respectively                in commissions at discount rates during the six months ended May                31, 2001.              
  

 
*May 31, 2001              Semi-Annual Report* *19*
         
**Web: http://www.saturna.com                  E-mail: sextant@saturna.com**

 

 

(logo)

SaturnaCapitalMutual Funds

 

 

 

 

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.

 
SEXTANT                          Mutual Funds(graphicomitted)
 

 

**SHORT-TERM                          BOND**

**BONDINCOME**

**GROWTH**

**INTERNATIONAL******

 

 

**SEMI-ANNUAL                          REPORT****May 31, 2001**