UNITED STATES   SECURITIES AND EXCHANGE COMMISSION  Washington, DC 20549**FORM N-Q****QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED  MANAGEMENT INVESTMENT COMPANY**  Investment Company Act file number: 811-05071**SATURNA INVESTMENT TRUST**  (Exact Name of Registrant as Specified in Charter)**1300 N. State Street  Bellingham, Washington 98225-4730**  (Address of Principal Executive Offices, including ZIP Code)  Nicholas F. Kaiser  1300 N. State Street  Bellingham, Washington 98225-4730  (Name and Address of Agent for Service)  Registrant’s Telephone Number- (360) 734-9900  Date of fiscal year end: November 30, 2008  Date of reporting period: August 31, 2008

 

 

**Item 1. Schedule of Investments**

The unaudited schedule of investments as of the close of the reporting  period is as follows:

| **Saturna Investment Trust Sextant        Growth Fund**          |
|------------------------------------------------------------------|
|                                                             |
| Common Stock                                                     | Quantity | Market Value | % Portfolio | Industry |
| Abbott Laboratories                                              | 4,000 | $229,720 | 1.55% | Medical - Drugs |
| Adobe Systems                                                    | 7,600 | $325,508 | 2.19% | Computer - Software |
| Advanced Micro Devices                                           | 10,000 | $62,900 | 0.42% | Elec Components - Semicondtrs |
| Agilent Technologies                                             | 8,000 | $278,080 | 1.87% | Elec Components - Misc |
| Alcoa                                                            | 6,000 | $192,780 | 1.30% | Metal Ores - Non Ferrous |
| Amazon.com                                                       | 5,000 | $404,050 | 2.72% | Retail - Internet |
| Amgen                                                            | 3,700 | $232,545 | 1.57% | Medical - Biomed/Genetics |
| Apple                                                            | 8,000 | $1,356,240 | 9.14% | Computer - Mini/Micro |
| Barr Pharmaceuticals                                             | 7,500 | $506,550 | 3.42% | Medical - Generic Drugs |
| Bed Bath & Beyond                                                | 5,000 | $153,300 | 1.03% | Retail - Misc/Diversified |
| Best Buy                                                         | 4,000 | $179,080 | 1.21% | Retail - Consumer Elect |
| Chubb                                                            | 5,000 | $240,050 | 1.62% | Insurance - Propt/Casul/Title |
| Devon Energy                                                     | 3,000 | $306,150 | 2.06% | Oil & Gas - U S Explo & Prod |
| Dr. Pepper Snapple Group                                         | 5,000 | $123,550 | 0.83% | Beverages - Soft Drink |
| Duke Energy                                                      | 10,000 | $174,400 | 1.18% | Utility - Electric Power |
| FPL Group                                                        | 7,000 | $420,420 | 2.83% | Utility - Electric Power |
| Freeport-McMoRan Copper & Gold,                                  | 3,300 | $294,756 | 1.99% | Metal Ores - Misc |
| Frontier Financial                                               | 15,000 | $167,250 | 1.13% | Banks - West |
| Harman International Industries                                  | 1,900 | $64,657 | 0.44% | Audio/Video Home Products |
| Hewlett-Packard                                                  | 7,000 | $328,440 | 2.21% | Computer - Mini/Micro |
| Honeywell International                                          | 3,500 | $175,595 | 1.18% | Diversified Operations |
| IDACORP                                                          | 6,000 | $178,800 | 1.21% | Utility - Electric Power |
| Intuit                                                           | 9,000 | $270,630 | 1.82% | Computer - Software |
| KB Home                                                          | 5,000 | $104,000 | 0.70% | Building - Resident/Commercl |
| Ligand Pharmaceuticals                                           | 10,000 | $33,800 | 0.23% | Medical - Biomed/Genetics |
| Eli Lilly                                                        | 3,500 | $163,275 | 1.10% | Medical - Drugs |
| Lincoln Electric Holdings                                        | 4,000 | $323,080 | 2.18% | Machinery - Tools & Rel Prods |
| Lowe's Companies                                                 | 6,500 | $160,160 | 1.08% | Buildg Prods - Retail/Whlsle |
| Norfolk Southern                                                 | 4,500 | $330,885 | 2.23% | Transportation - Rail |
| Nucor                                                            | 4,000 | $210,000 | 1.42% | Steel - Producers |
| Oracle                                                           | 15,000 | $328,950 | 2.22% | Computer - Software |
| Oshkosh Truck                                                    | 3,000 | $46,260 | 0.31% | Auto/Truck - Manufacturing |
| PepsiCo                                                          | 4,500 | $308,160 | 2.08% | Beverages - Soft Drink |
| Pharmaceutical Product Development                               | 15,000 | $612,000 | 4.13% | Medical - Drugs |
| Raytheon Company                                                 | 3,000 | $179,970 | 1.21% | Aerospace - Equipment |
| Red Lion Hotels                                                  | 21,000 | $179,130 | 1.21% | Hotels & Motels |
| Regal-Beloit                                                     | 5,500 | $258,225 | 1.74% | Machinery - Tools & Rel Prods |
| Charles Schwab                                                   | 25,000 | $599,750 | 4.04% | Finance - Investment Bkrs |
| Sempra Energy                                                    | 3,000 | $173,760 | 1.17% | Utility - Gas Distribution |
| Spectra Energy                                                   | 3,000 | $79,380 | 0.54% | Oil & Gas - Prods/Pipeline |
| Staples                                                          | 6,000 | $145,200 | 0.98% | Office Equip & Supplies |
| 3Com                                                             | 30,000 | $63,600 | 0.43% | Computer - Local Networks |
| Trimble Navigation Ltd.                                          | 14,000 | $473,900 | 3.20% | Instruments - Elec Measuring |
| UAL                                                              | 5,500 | $61,105 | 0.41% | Transportation - Airline |
| United Parcel Service, Class B                                   | 2,500 | $160,300 | 1.08% | Transportation - Services |
| US Treasury Bill                                                 | 2,000,000 | $1,995,478 | 13.45% | U S Government |
| VCA Antech                                                       | 8,000 | $245,920 | 1.66% | Medical - Hospitals |
| Washington Banking                                               | 6,250 | $57,500 | 0.39% | Banks - West |
| Weyerhaeuser                                                     | 4,200 | $233,058 | 1.57% | Buildg Prods - Wood |
| John Wiley & Sons, Class A                                       | 5,000 | $237,900 | 1.60% | Publishing - Books |
| Noble                                                            | 8,000 | $402,320 | 2.71% | Oil & Gas - Offshore Drillng |
|                                                             |
|                                                             | TOTAL | $14,832,517 |   |   |
|                                                             |
| **Saturna Investment Trust Sextant        Core Fund**            |
|                                                             |   |   |   |   |
| Common Stock                                                     | Quantity | Market Value | % Portfolio | Industry |
| AT&T                                                             | 900 | $28,791 | 0.77% | Telecommunctns - Services |
| Adobe Systems                                                    | 1,100 | $47,113 | 1.27% | Computer - Software |
| Alcoa                                                            | 1,400 | $44,982 | 1.21% | Metal Ores - Non Ferrous |
| Anglo American PLC ADR                                           | 1,119 | $29,765 | 0.80% | Metal Ores - Gold |
| Apple                                                            | 500 | $84,765 | 2.28% | Computer - Mini/Micro |
| Australia & New Zealand Banking                                  | 1,750 | $25,033 | 0.67% | Banks - Foreign |
| BASF AG ADS                                                      | 400 | $23,197 | 0.62% | Chemicals - Diversified |
| Berkley WR Corp                                                  | 100,000 | $99,944 | 2.69% | Insurance - Propt/Casul/Title |
| Berkshire Hathaway Financial                                     | 85,000 | $84,803 | 2.28% | Insurance - Multi Line |
| BHP Billiton Ltd. ADS                                            | 650 | $45,832 | 1.23% | Metal Ores - Non Ferrous |
| Black & Decker Corp.                                             | 350 | $22,138 | 0.60% | Tools - Hand Held |
| CRH PLC ADS                                                      | 600 | $15,846 | 0.43% | Building - Cement/Concrete/Ag |
| CSX Corp.                                                        | 95,000 | $97,382 | 2.62% | Transportation - Rail |
| Canadian National Railway                                        | 800 | $42,024 | 1.13% | Transportation - Rail |
| Canon ADS                                                        | 600 | $26,844 | 0.72% | Office Automation |
| China Mobile ADS                                                 | 500 | $28,360 | 0.76% | Telecommunctns - Cellular |
| Chubb                                                            | 750 | $36,008 | 0.97% | Insurance - Propt/Casul/Title |
| ConocoPhillips                                                   | 750 | $61,883 | 1.67% | Oil & Gas - U S Integrated |
| EI du Pont de Nemours                                            | 100,000 | $97,956 | 2.64% | Chemicals - Diversified |
| Duke Realty                                                      | 400 | $10,012 | 0.27% | Real Estate - Equity REITs |
| Emerson Electric                                                 | 100,000 | $101,035 | 2.72% | Elec Components - Misc |
| FPL Group                                                        | 600 | $36,036 | 0.97% | Utility - Electric Power |
| Fedex                                                            | 400 | $33,128 | 0.89% | Transportation - Air Freight |
| Freeport-McMoRan Copper & Gold,                                  | 200 | $17,864 | 0.48% | Metal Ores - Misc |
| Genentech Inc                                                    | 150,000 | $152,328 | 4.10% | Medical - Drugs |
| General Electric Capital Corp                                    | 100,000 | $103,782 | 2.79% | Finance - Services |
| General Mills                                                    | 1,000 | $66,180 | 1.78% | Food - Misc Preparation |
| GlaxoSmithKline PLC ADS                                          | 500 | $23,485 | 0.63% | Medical - Drugs |
| Harris                                                           | 550 | $28,798 | 0.77% | Telecommunctns - Equip |
| Hewlett-Packard                                                  | 1,000 | $46,920 | 1.26% | Computer - Mini/Micro |
| Honeywell International                                          | 850 | $42,645 | 1.15% | Diversified Operations |
| IDACORP                                                          | 900 | $26,820 | 0.72% | Utility - Electric Power |
| ING Groep NV ADS                                                 | 400 | $12,460 | 0.34% | Insurance - Multi Line |
| JP Morgan Chase & Co                                             | 550 | $21,170 | 0.57% | Banks - Money Center |
| Johnson & Johnson                                                | 700 | $49,301 | 1.33% | Medical - Supplies |
| Kimberly-Clark                                                   | 625 | $38,550 | 1.04% | Paper & Paper Products |
| LAN Airlines SA ADS                                              | 4,000 | $46,920 | 1.26% | Transportation - Airline |
| Eli Lilly                                                        | 1,000 | $46,650 | 1.26% | Medical - Drugs |
| Lockheed Martin                                                  | 300 | $34,932 | 0.94% | Electronics - Military Sys |
| Lowe's Companies                                                 | 900 | $22,176 | 0.60% | Buildg Prods - Retail/Whlsle |
| McGraw-Hill                                                      | 1,000 | $42,840 | 1.15% | Publishing - Books |
| Motorola Inc.                                                    | 100,000 | $75,716 | 2.04% | Telecommunctns - Equip |
| Nike, Class B                                                    | 900 | $54,549 | 1.47% | Shoes & Related Apparel |
| Nomura Holdings ADR                                              | 700 | $9,324 | 0.25% | Finance - Investment Bkrs |
| Norsk Hydro ASA ADS                                              | 2,000 | $21,447 | 0.58% | Oil & Gas - Intl Integrated |
| Novartis AG ADR                                                  | 300 | $16,692 | 0.45% | Medical - Drugs |
| Novo Nordisk A/S ADS                                             | 400 | $22,224 | 0.60% | Medical - Drugs |
| Nucor                                                            | 800 | $42,000 | 1.13% | Steel - Producers |
| PNC Bank                                                         | 600 | $43,170 | 1.16% | Banks - Northeast |
| Panamerican Beverages (KOF)                                      | 94,000 | $96,361 | 2.59% | Beverages - Soft Drink |
| Parker Hannifin                                                  | 450 | $28,832 | 0.78% | Instruments - Control |
| Pearson PLC ADS                                                  | 2,100 | $26,040 | 0.70% | Publishing - Books |
| PepsiCo                                                          | 1,000 | $68,480 | 1.84% | Beverages - Soft Drink |
| Pfizer                                                           | 1,900 | $36,309 | 0.98% | Medical - Drugs |
| Praxair                                                          | 700 | $62,888 | 1.69% | Chemicals - Specialty |
| Procter & Gamble                                                 | 900 | $62,793 | 1.69% | Cosmetics & Toiletries |
| RPM International                                                | 1,000 | $21,600 | 0.58% | Buildg Prods - Retail/Whlsle |
| Rockwell Collins                                                 | 800 | $42,072 | 1.13% | Aerospace - Equipment |
| Staples                                                          | 90,000 | $93,000 | 2.50% | Office Equip & Supplies |
| StatoilHydo ASA ADS                                              | 603 | $18,470 | 0.50% | Oil & Gas - Intl Integrated |
| Taiwan Semiconductor ADS                                         | 1,514 | $14,701 | 0.40% | Elec Components - Semicondtrs |
| Telefonica SA ADS                                                | 500 | $37,035 | 1.00% | Utility - Telephone |
| Telefonos de Mexico, Class L ADS                                 | 1,200 | $29,484 | 0.79% | Utility - Telephone |
| Telemex International                                            | 1,200 | $16,932 | 0.46% | Telecommunctns - Services |
| 3M                                                               | 600 | $42,960 | 1.16% | Diversified Operations |
| Tomkins PLC ADS                                                  | 750 | $8,205 | 0.22% | Diversified Operations |
| Toronto-Dominion Bank                                            | 550 | $32,038 | 0.86% | Banks - Foreign |
| Toyota Motor ADS                                                 | 200 | $17,918 | 0.48% | Auto/Truck - Mfg Foreign |
| Unilever PLC ADS                                                 | 1,600 | $42,912 | 1.15% | Food - Misc Preparation |
| US T Bond 5.25% 11/15/28                                         | 187,000 | $206,153 | 5.55% | U S Government |
| US Treasury Note                                                 | 100,000 | $103,539 | 2.79% | U S Government |
| United Technologies                                              | 525 | $34,435 | 0.93% | Aerospace - Equipment |
| UnitedHealth Group                                               | 1,400 | $42,630 | 1.15% | Medical - Hlth Maint Orgs |
| Verizon                                                          | 100,000 | $103,114 | 2.77% | Telecommunctns - Cellular |
| Walmart                                                          | 100,000 | $99,431 | 2.68% | Retail - Misc/Diversified |
| Noble                                                            | 1,200 | $60,348 | 1.62% | Oil & Gas - Offshore Drillng |
| Orient-Express Hotels Ltd., Class A                              | 1,000 | $35,900 | 0.97% | Hotels & Motels |
|                                                             |   |   |   |   |
|                                                             | TOTAL | $3,716,394 |   |   |
|                                                             |
| **Saturna Investment Trust Sextant        International Fund**   |
|                                                             |   |   |   |   |
| Common Stock                                                     | Quantity | Market Value | % Portfolio | Industry |
| Aegon NV                                                         | 5,361 | $63,206 | 0.48% | Insurance - Multi Line |
| Air France-KLM ADR                                               | 6,000 | $143,700 | 1.10% | Transportation - Airline |
| America Movil SAB de CV ADS                                      | 6,000 | $308,280 | 2.36% | Telecommunctns - Cellular |
| American Oriental Bioengineering                                 | 15,000 | $124,200 | 0.95% | Medical - Biomed/Genetics |
| Anglo American PLC ADR                                           | 6,825 | $181,545 | 1.39% | Metal Ores - Gold |
| Australia & New Zealand Banking                                  | 5,000 | $71,523 | 0.55% | Banks - Foreign |
| AXA ADS                                                          | 4,200 | $134,022 | 1.03% | Banks - Foreign |
| BASF AG ADS                                                      | 3,400 | $197,173 | 1.51% | Chemicals - Diversified |
| BCE                                                              | 5,490 | $207,687 | 1.59% | Telecommunctns - Equip |
| Banco Bilbao Vizcaya Argentaria SA                               | 7,500 | $126,225 | 0.97% | Banks - Foreign |
| CRH PLC ADS                                                      | 4,000 | $105,640 | 0.81% | Building - Cement/Concrete/Ag |
| Cadbury Schweppes PLC ADS                                        | 2,560 | $118,067 | 0.91% | Food - Confectionery |
| Canadian Pacific Railway Ltd.                                    | 3,200 | $194,400 | 1.49% | Transportation - Rail |
| Canon ADS                                                        | 5,300 | $237,122 | 1.82% | Office Automation |
| China Mobile ADS                                                 | 2,750 | $155,980 | 1.20% | Telecommunctns - Cellular |
| Coca-Cola Femsa SAB de CV ADS                                    | 4,300 | $243,982 | 1.87% | Beverages - Soft Drink |
| Companhia Vale do Rio Doce ADR                                   | 6,000 | $159,300 | 1.22% | Metal Prods - Fabrication |
| Dassault Systems SA ADR                                          | 3,000 | $181,950 | 1.40% | Computer - Software |
| Empresa Brasileira de Aeronautica                                | 4,400 | $149,380 | 1.15% | Aerospace - Aircraft |
| EnCana                                                           | 3,000 | $224,700 | 1.72% | Oil & Gas - Canadn Integrated |
| Enersis SA ADS                                                   | 9,000 | $154,260 | 1.18% | Utility - Electric Power |
| Epcos AG ADS                                                     | 2,500 | $65,111 | 0.50% | Elec Components - Misc |
| 51job ADR                                                        | 8,000 | $88,400 | 0.68% | Business Services |
| GlaxoSmithKline PLC ADS                                          | 3,000 | $140,910 | 1.08% | Medical - Drugs |
| Infineon Technologies AG ADR                                     | 5,000 | $42,550 | 0.33% | Elec Components - Semicondtrs |
| ING Groep NV ADS                                                 | 4,000 | $124,600 | 0.96% | Insurance - Multi Line |
| James Hardie Industries NV ADS                                   | 3,000 | $59,400 | 0.46% | Building - Resident/Commercl |
| Korea Electric Power ADS                                         | 10,000 | $150,500 | 1.15% | Utility - Electric Power |
| LAN Airlines SA ADS                                              | 17,500 | $205,275 | 1.57% | Transportation - Airline |
| Metso ADS                                                        | 2,100 | $82,518 | 0.63% | Paper & Paper Products |
| Mitsubishi UFJ Financial Group ADR                               | 10,000 | $76,400 | 0.59% | Banks - Foreign |
| Nidec ADR                                                        | 5,000 | $84,800 | 0.65% | Machinery - Electrical |
| Nissan Motor Ltd. ADS                                            | 5,500 | $83,325 | 0.64% | Auto/Truck - Mfg Foreign |
| Nomura Holdings ADR                                              | 10,000 | $133,200 | 1.02% | Finance - Investment Bkrs |
| Norsk Hydro ASA ADS                                              | 6,000 | $64,340 | 0.49% | Oil & Gas - Intl Integrated |
| Novartis AG ADR                                                  | 3,000 | $166,920 | 1.28% | Medical - Drugs |
| Pearson PLC ADS                                                  | 7,000 | $86,800 | 0.67% | Publishing - Books |
| Petro-Canada                                                     | 3,200 | $141,248 | 1.08% | Oil & Gas - Canadn Integrated |
| Potash Corp. of Saskatchewan                                     | 3,000 | $520,800 | 3.99% | Fertilizers |
| PT Indosat Tbk. ADR                                              | 2,500 | $82,825 | 0.64% | Utility - Telephone |
| Repsol YPF ADS                                                   | 3,500 | $107,975 | 0.83% | Oil & Gas - Intl Integrated |
| Rio Tinto PLC ADS                                                | 750 | $284,790 | 2.18% | Metal Ores - Misc |
| Ritchie Bros. Auctioneers                                        | 9,000 | $238,140 | 1.83% | Building - Heavy Const |
| SK Telecom Ltd. ADR                                              | 8,000 | $163,200 | 1.25% | Telecommunctns - Services |
| Satyam Computer Services ADR                                     | 6,000 | $133,560 | 1.02% | Computer - Software |
| Shire PLC ADR                                                    | 2,000 | $106,160 | 0.81% | Medical - Drugs |
| Sony ADS                                                         | 6,000 | $229,200 | 1.76% | Audio/Video Home Products |
| StatoilHydo ASA ADS                                              | 5,173 | $158,449 | 1.21% | Oil & Gas - Intl Integrated |
| Telecom Corp. New Zealand Ltd. ADS                               | 3,555 | $39,674 | 0.30% | Utility - Telephone |
| Telefonica SA ADS                                                | 4,000 | $296,280 | 2.27% | Utility - Telephone |
| Telefonos de Mexico, Class L ADS                                 | 5,000 | $122,850 | 0.94% | Utility - Telephone |
| Telemex International                                            | 5,000 | $70,550 | 0.54% | Telecommunctns - Services |
| Telus                                                            | 3,000 | $116,370 | 0.89% | Telecommunctns - Services |
| Tenaris SA ADR                                                   | 2,500 | $136,725 | 1.05% | Steel - Pipe & Tubes |
| Toronto-Dominion Bank                                            | 2,400 | $139,800 | 1.07% | Banks - Foreign |
| TOTAL SA ADS                                                     | 2,600 | $186,888 | 1.43% | Oil & Gas - Intl Integrated |
| Transportadora de Gas del Sur SA                                 | 1,500 | $5,310 | 0.04% | Utility - Gas Distribution |
| US Treasury Bill                                                 | 2,000,000 | $1,995,447 | 15.30% | U S Government |
| US Treasury Bill                                                 | 2,000,000 | $1,995,478 | 15.30% | U S Government |
| UPM-Kymmene Oyj ADS                                              | 3,500 | $60,289 | 0.46% | Paper & Paper Products |
| Votorantim Celulose e Papel SA ADS                               | 8,000 | $168,960 | 1.30% | Paper & Paper Products |
| Orient-Express Hotels Ltd., Class A                              | 5,000 | $179,500 | 1.38% | Hotels & Motels |
| AudioCodes Ltd.                                                  | 8,000 | $33,200 | 0.25% | Telecommunctns - Equip |
| Copa Holdings SA                                                 | 5,000 | $190,900 | 1.46% | Transportation - Airline |
|                                                             |   |   |   |   |
|                                                             | TOTAL | $13,041,958 |   |   |   |
|                                                             |
| **Saturna Investment Trust Sextant        Short-Term Bond Fund** |
|                                                             |   |   |   |   |   |
| Corporate Bond                                                   | Quantity | Market Value | % Portfolio | Maturity | Industry |
| Astrazeneca PLC                                                  | 125,000 | $129,094 | 4.47% | 9/15/12 | Medical - Drugs |
| Berkshire Hathaway Financial                                     | 100,000 | $101,717 | 3.52% | 5/15/15 | Insurance - Multi Line |
| Caterpillar Inc.                                                 | 100,000 | $103,200 | 3.57% | 9/15/09 | Machinery - Const/Mining |
| Dover Corporation                                                | 100,000 | $105,564 | 3.65% | 2/15/11 | Machinery - Genrl Industrial |
| Fed Home Loan Mtg Corp                                           | 150,000 | $148,666 | 5.15% | 2/13/15 | Finance - Mrtg & R.E. Service |
| Federal Farm Credit Bank                                         | 200,000 | $203,740 | 7.05% | 6/5/13 | Agricultural Operations |
| Federal National Mortgae Assoc.                                  | 120,000 | $123,070 | 4.26% | 2/23/10 | U S Government |
| Fortune Brands                                                   | 120,000 | $120,355 | 4.17% | 1/15/11 | Beverages - Alcoholic |
| Genentech Inc                                                    | 100,000 | $101,552 | 3.52% | 7/15/10 | Medical - Drugs |
| General Electric Capital Corp                                    | 100,000 | $101,237 | 3.50% | 10/19/12 | Diversified Operations |
| Halliburton Co.                                                  | 132,000 | $136,884 | 4.74% | 10/15/10 | Oil & Gas - Field Services |
| HSBC Finance Corp. (Household Finc)                              | 100,000 | $100,894 | 3.49% | 10/15/11 | Finance - Consumer Loans |
| IBM Corporation                                                  | 135,000 | $138,944 | 4.81% | 10/22/12 | Computer - Services |
| International Lease Finance (AIG)                                | 125,000 | $119,410 | 4.13% | 4/15/10 | Finance - Leasing Cos |
| Lehman Brothers Holdings                                         | 100,000 | $92,412 | 3.20% | 4/25/11 | Finance - Investment Bkrs |
| Marathon Oil                                                     | 120,000 | $122,268 | 4.23% | 7/1/12 | Oil & Gas - U S Integrated |
| ConocoPhillips Co                                                | 100,000 | $108,623 | 3.76% | 5/25/10 | Oil & Gas - Intl Integrated |
| Scottish Power PLC                                               | 100,000 | $100,288 | 3.47% | 3/15/10 | Utility - Electric Power |
| TJ X Companies                                                   | 95,000 | $99,283 | 3.44% | 12/15/09 | Retail - Discount & Variety |
| US Treasury Note                                                 | 200,000 | $202,922 | 7.03% | 6/15/09 | U S Government |
| US Treasury Note                                                 | 200,000 | $205,656 | 7.12% | 4/15/10 | U S Government |
| Verizon New England Tel.                                         | 129,000 | $124,087 | 4.30% | 10/1/13 | Utility - Telephone |
| WM Wrigley Jr Co.                                                | 100,000 | $98,676 | 3.42% | 7/15/10 | Food - Confectionery |
|                                                             |   |   |   |   |   |
|                                                             | TOTAL | $2,888,541 |   |   |   |
|                                                             |
| **Saturna Investment Trust Sextant        Bond Income Fund**     |
|                                                             |   |   |   |   |   |
| Corporate Bond                                                   | Quantity | Market Value | % Portfolio | Maturity | Industry |
| Air Products & Chemicals                                         | 50,000 | $63,529 | 2.02% | 4/15/21 | Chemicals - Specialty |
| Allstate Corp.                                                   | 50,000 | $54,397 | 1.73% | 6/15/13 | Insurance - Multi Line |
| Archer Daniels Midlands                                          | 100,000 | $103,802 | 3.29% | 2/1/31 | Agricultural Operations |
| AutoZone Inc.                                                    | 95,000 | $89,653 | 2.84% | 11/15/15 | Auto Parts - Replacement |
| Avery Dennison Corp                                              | 95,000 | $84,058 | 2.67% | 1/15/33 | Office Equip & Supplies |
| BHP Finance USA                                                  | 125,000 | $120,794 | 3.83% | 12/15/15 | Metal Ores - Misc |
| Baker Hughes Inc                                                 | 100,000 | $106,894 | 3.39% | 1/15/29 | Oil & Gas - Field Services |
| Baker Hughes Inc.                                                | 20,000 | $20,244 | 0.64% | 2/15/09 | Oil & Gas - Field Services |
| Becton Dickinson Corp.                                           | 40,000 | $41,044 | 1.30% | 10/1/09 | Medical - Supplies |
| Caterpillar INC                                                  | 40,000 | $45,599 | 1.45% | 8/15/11 | Machinery - Const/Mining |
| Cingular Wireless (AT&T)                                         | 140,000 | $143,308 | 4.55% | 12/15/31 | Utility - Telephone |
| CitiCorp                                                         | 50,000 | $52,789 | 1.68% | 10/15/11 | Banks - Money Center |
| Comerica Bank                                                    | 50,000 | $48,423 | 1.54% | 12/1/13 | Banks - Midwest |
| Commonwealth Edison Corp.                                        | 50,000 | $54,244 | 1.72% | 7/1/13 | Utility - Electric Power |
| Conagra Inc.                                                     | 33,000 | $34,970 | 1.11% | 9/15/10 | Food - Misc Preparation |
| Dayton Hudson Corp. (Target Stores)                              | 50,000 | $55,342 | 1.76% | 1/1/11 | Retail - Discount & Variety |
| Dean Witter Discovery & Company                                  | 50,000 | $49,820 | 1.58% | 10/15/13 | Finance - Investment Bkrs |
| Deere & Co.                                                      | 95,000 | $114,806 | 3.64% | 5/15/30 | Machinery - Farm |
| Federal Farm Credit Bank                                         | 150,000 | $151,669 | 4.81% | 8/15/21 | U S Government |
| Federal National Mtge Assoc.                                     | 100,000 | $99,663 | 3.16% | 4/10/15 | U S Government |
| Federal Nat Mortgage Assoc                                       | 150,000 | $149,462 | 4.74% | 11/28/17 | U S Government |
| Florida Power & Light                                            | 100,000 | $99,120 | 3.15% | 10/1/33 | Utility - Electric Power |
| General Electric Capital Corp                                    | 60,000 | $65,886 | 2.09% | 5/15/12 | Finance - Leasing Cos |
| Goldman Sachs                                                    | 100,000 | $84,231 | 2.67% | 1/15/27 | Finance - Investment Bkrs |
| Heinz H. J. Co.                                                  | 75,000 | $77,232 | 2.45% | 3/15/12 | Food - Misc Preparation |
| Hershey Foods Co.                                                | 50,000 | $54,018 | 1.71% | 8/15/12 | Food - Confectionery |
| Lowe's Companies                                                 | 50,000 | $53,350 | 1.69% | 6/1/10 | Buildg Prods - Retail/Whlsle |
| Masco                                                            | 60,000 | $60,507 | 1.92% | 8/15/13 | Buildg Prods - Miscellaneous |
| May Dept. Stores                                                 | 50,000 | $50,587 | 1.61% | 7/15/12 | Retail - Major Dept Strs |
| Norwest Financial                                                | 50,000 | $50,915 | 1.62% | 7/15/09 | Banks - Midwest |
| Paine Webber Group                                               | 50,000 | $54,023 | 1.71% | 2/15/14 | Finance - Investment Bkrs |
| Pharmacia (PFE)                                                  | 100,000 | $108,639 | 3.45% | 12/1/18 | Medical - Drugs |
| Phillips Electronics Corp                                        | 75,000 | $82,409 | 2.62% | 8/15/13 | Electronics - Misc Products |
| Progressive                                                      | 75,000 | $78,570 | 2.49% | 10/1/13 | Insurance - Propt/Casul/Title |
| St. Pauls Travelers Insurance                                    | 125,000 | $124,391 | 3.95% | 12/1/15 | Insurance - Propt/Casul/Title |
| Sempra Energy Corp                                               | 50,000 | $52,527 | 1.67% | 3/1/10 | Utility - Gas Distribution |
| Southwest Airlines                                               | 75,000 | $74,947 | 2.38% | 3/1/12 | Transportation - Airline |
| US T Note 5.25% 2/15/2029                                        | 145,000 | $159,772 | 5.07% | 2/15/29 | U S Government |
| Wal-Mart Stores                                                  | 45,000 | $50,316 | 1.60% | 6/1/13 | Retail - Discount & Variety |
| XL Capital (Europe)                                              | 90,000 | $85,434 | 2.71% | 1/15/12 | Insurance - Propt/Casul/Title |
|                                                             |   |   |   |   |   |
|                                                             | TOTAL | $3,151,385 |   |   |   |
|                                                             |
| **Saturna Investment Trust Idaho        Tax-Exempt Fund**        |
|                                                             |   |   |   |   |   |
| Municipal Bond                                                   | Quantity | Market Value | % Portfolio | Maturity | Industry |
| Ada & Canyon JSD #2 Meridian                                     | 50,000 | $56,753 | 0.47% | 7/30/15 | Schools |
| Ada & Canyon JSD #2 Meridian                                     | 165,000 | $175,124 | 1.46% | 8/15/20 | General Obligations |
| Ada & Canyon JSD #2 Merdian                                      | 155,000 | $163,548 | 1.37% | 8/15/21 | General Obligations |
| Ada & Canyon JSD # 3 Kuna                                        | 500,000 | $543,425 | 4.54% | 9/15/19 | General Obligations |
| Washington & Adams Co.s JSDC # 432                               | 100,000 | $102,747 | 0.86% | 8/15/19 | General Obligations |
| Bingham Co. Id. SCD # 55 Blackfoot                               | 285,000 | $299,526 | 2.50% | 8/1/17 | General Obligations |
| Blackfoot ID COP Series 2000                                     | 135,000 | $141,693 | 1.18% | 2/1/18 | Utility - Waste Mangmt |
| Blaine County Idaho Series A                                     | 150,000 | $152,015 | 1.27% | 8/1/23 | General Obligations |
| Boise Co. ID SD # 73 Horseshoe Bend                              | 125,000 | $126,590 | 1.06% | 7/31/10 | Schools |
| Boise City ID Gen Fund Rev                                       | 160,000 | $168,410 | 1.41% | 12/1/17 | Finance - Services |
| Boise City ID Gen Fund Rev                                       | 100,000 | $105,251 | 0.88% | 12/1/18 | Finance - Services |
| Boise State University Rev.'s Ref A                              | 295,000 | $312,774 | 2.61% | 4/1/19 | State Education |
| Boise CIty Urb Ren Agy Lease Rev                                 | 160,000 | $168,230 | 1.41% | 8/15/20 | Real Estate - Development |
| Boise City Urb Ren Agy Lease Rev                                 | 90,000 | $93,467 | 0.78% | 8/15/21 | Real Estate - Development |
| Bonneville & Bingham Co ID SCD 93                                | 150,000 | $158,318 | 1.32% | 9/15/16 | General Obligations |
| Bonneville & Bingham Co JSD #93 GO                               | 150,000 | $156,894 | 1.31% | 9/15/17 | General Obligations |
| Boundary Co. ID SCD 101                                          | 130,000 | $143,558 | 1.20% | 8/1/22 | General Obligations |
| Caldwell ID GO                                                   | 150,000 | $155,864 | 1.30% | 5/15/14 | General Obligations |
| Canyon Co. ID SCD # 131 Nampa                                    | 325,000 | $339,099 | 2.83% | 8/15/19 | Schools |
| Canyon Co. ID SCD # 131 Nampa                                    | 105,000 | $108,480 | 0.91% | 8/15/23 | General Obligations |
| Canyon Co. ID SD #134 Middleton                                  | 170,000 | $177,883 | 1.49% | 7/31/16 | General Obligations |
| Canyon Co. Id SD #139 Vallivue                                   | 350,000 | $345,023 | 2.88% | 9/15/25 | Schools |
| Fremont & Madison JSD 215 St. Antho                              | 200,000 | $202,354 | 1.69% | 8/15/19 | General Obligations |
| Idaho Bond Bank Authority Rev                                    | 135,000 | $133,461 | 1.12% | 9/1/22 | Pollution Control - Servcs |
| Idaho Bond Bank Authority                                        | 250,000 | $258,003 | 2.16% | 9/15/26 | Utility - Water Supply |
| Idaho Bond Bank Authority                                        | 75,000 | $73,045 | 0.61% | 9/15/23 | Utility - Waste Mangmt |
| Idaho Bond Bank Authority                                        | 90,000 | $90,293 | 0.75% | 9/15/19 | Finance - Services |
| Idaho Falls ID Electric                                          | 140,000 | $162,877 | 1.36% | 4/1/19 | Utility - Electric Power |
| Idaho Health Fac Ath Holy Cross Rev                              | 50,000 | $50,124 | 0.42% | 12/1/28 | Medical - Hospitals |
| Idaho Health Facs Auth Rev Ref.                                  | 110,000 | $111,246 | 0.93% | 12/1/14 | Medical - Hospitals |
| Idaho Health Facs Auth Corp                                      | 115,000 | $116,462 | 0.97% | 12/1/22 | Medical - Hospitals |
| Idaho Housing & Finance Assoc.                                   | 100,000 | $100,540 | 0.84% | 6/1/17 | Schools |
| Idaho Housing & Finance Assoc                                    | 200,000 | $208,570 | 1.74% | 7/15/24 | Transportation - Services |
| Idaho Housing & Finance Fed Hgy SrA                              | 250,000 | $255,158 | 2.13% | 7/15/23 | Roads |
| Idaho State Building Authority                                   | 95,000 | $94,525 | 0.79% | 9/1/18 | Real Estate - Development |
| Idaho State Building Authority                                   | 100,000 | $100,000 | 0.84% | 9/1/21 | Real Estate - Development |
| Idaho State Building Authority                                   | 110,000 | $110,293 | 0.92% | 9/1/23 | Building - Resident/Commercl |
| Idaho State University Ref & Impt                                | 150,000 | $150,884 | 1.26% | 4/1/17 | State Education |
| Idaho State University Rev.                                      | 220,000 | $220,977 | 1.85% | 4/1/24 | State Education |
| Jefferson & Madison SCD 251 Rigby                                | 100,000 | $97,841 | 0.82% | 9/1/24 | General Obligations |
| Jerome ID Urban Renewal District                                 | 200,000 | $201,786 | 1.69% | 9/1/13 | Real Estate - Development |
| Jerome Lincoln Gooding Co's JSC 261                              | 125,000 | $125,161 | 1.05% | 9/15/18 | General Obligations |
| Jerome Lincoln Gooding Co's JSD 261                              | 250,000 | $263,620 | 2.20% | 9/15/22 | General Obligations |
| Kootenai-Shonshone Area Librarys                                 | 220,000 | $227,581 | 1.90% | 8/1/21 | General Obligations |
| Latah Nez Perce Clearwater JSD 283                               | 190,000 | $197,097 | 1.65% | 8/15/27 | General Obligations |
| Lemhi County ID GO                                               | 100,000 | $103,247 | 0.86% | 8/1/15 | General Obligations |
| Madison CO ID Hospital COP                                       | 105,000 | $105,875 | 0.89% | 12/1/18 | Medical - Hospitals |
| Madison Co. Id SCD # 321 Rexburg                                 | 260,000 | $259,995 | 2.17% | 8/15/24 | General Obligations |
| Madison Co. SD # 321 Rexburg UTGO                                | 250,000 | $246,360 | 2.06% | 8/15/26 | Schools |
| Meridian ID Free Library District                                | 100,000 | $100,858 | 0.84% | 8/1/15 | General Obligations |
| Minidoka & Jerome JSD # 331                                      | 75,000 | $76,318 | 0.64% | 8/15/18 | General Obligations |
| Minidoka & Jerome JSD # 331                                      | 75,000 | $75,110 | 0.63% | 8/15/20 | General Obligations |
| Minidoka & Jerome JSD 331                                        | 225,000 | $216,853 | 1.81% | 8/15/24 | General Obligations |
| Minidoka & Jerome JSD # 331                                      | 160,000 | $155,013 | 1.30% | 8/15/25 | General Obligations |
| Moscow Idaho Sewer Revenue                                       | 200,000 | $202,026 | 1.69% | 5/1/28 | Utilities - Sewer |
| Nampa Idaho Series B                                             | 200,000 | $207,194 | 1.73% | 8/1/20 | General Obligations |
| Nez Perce County (Jail) 2007 COP                                 | 150,000 | $150,411 | 1.26% | 2/1/21 | Municipal Leases |
| Owyhee & Canyon Co SD 370 Homedale                               | 160,000 | $175,638 | 1.47% | 8/15/16 | Schools |
| Owyhee & Elmore SD 365 Grandview                                 | 350,000 | $355,506 | 2.97% | 8/15/27 | Schools |
| Payette Co ID SCD #373                                           | 100,000 | $106,245 | 0.89% | 9/15/24 | Schools |
| Pocatello ID Water Rev                                           | 100,000 | $96,967 | 0.81% | 2/1/24 | Utility - Water Supply |
| Pocatello ID. Water Revenue                                      | 350,000 | $346,308 | 2.89% | 2/1/26 | Utility - Water Supply |
| Post Falls LID 2004-1                                            | 300,000 | $300,381 | 2.51% | 5/1/21 | Real Estate - Development |
| Troy ID Sewer System                                             | 20,000 | $19,896 | 0.17% | 2/1/09 | Utilities - Sewer |
| Troy ID Sewer System                                             | 20,000 | $19,928 | 0.17% | 2/1/10 | Utilities - Sewer |
| University of Idaho Rev's                                        | 200,000 | $206,204 | 1.72% | 4/1/19 | State Education |
| University of Idaho Rev's                                        | 260,000 | $265,983 | 2.22% | 4/1/20 | State Education |
| Valley & Adams JSD # 421 McCall                                  | 135,000 | $135,531 | 1.13% | 8/1/22 | General Obligations |
| Valley & Adams Co.'s JSD 421                                     | 290,000 | $288,362 | 2.41% | 8/1/24 | Schools |
|                                                             |   |   |   |   |   |
|                                                             | TOTAL | $11,962,770 |   |   |   |

 

**Item 2. Controls and Procedures**

Internal control over financial reporting is under the supervision  of the principal executive and financial officers. On September 18, 2008, Mr.  Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed  the internal control procedures for Saturna Investment Trust and found them  reasonable and adequate.

**Item 3. Exhibits**

Certification of Principal Executive Officer and Principal Financial  Officer of the Registrant as required by Rule 30a-2(a) under the Investment  Company Act of 1940 (17 CFR 270.30a-2(a)) is attached hereto as Exhibit 99CERT.

 

 

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the  Investment Company Act of 1940, the registrant has duly caused this report to  be signed on its behalf by the undersigned, thereunto duly authorized.

SATURNA INVESTMENT TRUST

By:  /s/ *Nicholas Kaiser*  Nichola Kaiser, President   Date: October 14, 2008

  Pursuant to the requirements of the Securities Exchange Act of 1934 and the  Investment Act of 1940, this report has been signed below by the following persons  on behalf of the registrant and in the capacities and on the dates indicated.

By:  /s/ *Nicholas Kaiser*  Nicholas Kaiser, President   Date: October 14, 2008  By:  /s/*Christopher Fankhauser*  Christopher Fankhauser, Treasurer   Date: October 14, 2008