November 30, 2011

  To: **Trustees of Amana Mutual Funds Trust and Saturna Investment Trust**  Re: **Proposed Fidelity Bond and D&O/E&O Annual Premium Allocations**  From: **Saturna Capital**  Annually at the December meeting the Trustees must review and vote to continue  Rule 17g-1 joint fidelity bond coverage. This memorandum discusses the ICI Mutual  quote and proposed premium allocation amongst the insured parties.   The D&O/E&O limit remains at $3 million with a deductible of $300,000.  Due to the Amana Trust's growth past $3.5 Billion in total assets during the  preceeding year, the fidelity bond coverage was also increased intra-year from  $2,610,000 to $2,810,000. The fidelity bond coverage was also increase for Saturna  Investment Trust from $600,000 to $750,000. The 17g-1 AUM limits for each entity  given the current coverage are shown in Table 1 below. 

As a result of the $750,000 in fideltiy bond coverage, the premium has increased  $1,695 from $21,000 last year to $22,695. The parties have historically allocated  the premium according to the proportion of each insured's required coverage  to the total bond coverage. Using this method, the bond premium allocation is  show below in Table 1.  The D&O/E&O premium has decreased slightly from 105,000 last year to  $104,040. The allocation applies an approximately 17% discount to quoted premiums  received from ICI Mutual for individual policies of appropriate size for each  entity. The individually quoted policy sizes were $3 million for Amana, and  $1 million for each of Saturna Investment Trust and Saturna Capital, including  its subsidiaries, Saturna Brokerage Services and Saturna Trust Company. The  D&O/E&O allocation is show below in Table 2. 

We have indicated acceptance of the policies, subject to your ratification  of payment at this meeting. Attatched is a letter from ICI Mutual discussing  the indvidual D&O/E&O policy quote and confirming that the total premium  for the bond and policy coverage allocated to each investment company is less  than the premium such company would have to pay if it purchased separate policies.  

| **Table 1. Fidelity Bond Premium Allocation** |
|-----------------------------------------------|
| **Insured**                                   | **17(g)-1 AUM Limit** | **Coverage         Requirement** | **Percentage of         Total Bond** | **Bond Premium*** |
| Amana Mutual Funds Trust                      | $4 Billion | $2,100,000 | 66.46% | $15,082 |
| Saturna Investment Trust                      | $500 Million | $750,000 | 23.73% | $5,386 |
| Saturna Capital                               |  | $250,000 | 7.91% | $1,795 |
| Saturna Brokerage                             |  | $60,000 | 1.90% | $431 |
|                                          |   | $3,160,000 | 100.00% | $22,695 |

| **Table 2. D&O/E&O Policy Premium Allocation** |
|--------------------------------------------------------|
| **Insured**                                            | **Individual        Policy Limit** | **Individual        Policy Quote** | **Joint Policy        Discount (~18%)** | **Policy Premium** |
| Amana Mutual Funds Trust                               | $3,000,000 | $70,500 | $12,009 | $58,491 |
| Saturna Investment Trust                               | $1,000,000 | $22,900 | $3,901 | $18,999 |
| Saturna Capital                                        | $1,000,000 | $32,000 | $5,451 | $26,549 |
|                                                   |   | $125,400 | $21,360 | $104,040 |

*Total dues will differ slightly from amount shown as premiums  do not include taxes or offsets from ICI Mutual dividends