| Additional Performance Information                           | Page 2  |
|--------------------------------------------------------------|---------|
|                                                              |
| Letter To Shareowners                                        | Page 3  |
|                                                              |
| Sextant Short-Term Bond Fund                                 | Page 4  |
|                                                              |
| Sextant Bond Income                                          | Page 9  |
|                                                              |
| Sextant Growth Fund                                          | Page 14 |
|                                                              |
| Sextant International Fund                                   | Page 20 |
|                                                              |
| Expense Examples                                             | Page 26 |
|                                                              |
| Notes        To Financial Statements                         | Page 27 |
|                                                              |
| Report of Registered Independent Public Accounting      Firm | Page 29 |
|                                                              |
| Renewal of Investment Advisory Contracts                     | Page 29 |
|                                                              |
| Results of Special Shareowner Meeting                        | Page 30 |
|                                                              |
| Trustees and Officers                                        | Page 31 |
|                                                              |
| Privacy Statement                                            | Page 31 |

 

 

| Additional Performance Information            |
|-----------------------------------------------|
|                                               |
| **Average Annual Returns** (as of 12/31/2006) | 1-Year | 5-Year | 10-Year |
|                                               |
| Sextant Short-Term Bond Fund                  | 3.86% | 3.28% | 4.63% |
|                                               |
| Sextant Bond Income Fund                      | 3.04% | 5.11% | 6.13% |
|                                               |
| Sextant Growth Fund                           | 8.17% | 9.00% | 11.43% |
|                                               |
| Sextant International Fund                    | 22.02% | 14.06% | 10.24% |

Performance data quoted in this report represents past  performance, is before any taxes payable by shareowners,  and is no guarantee of future performance. Mutual  fund performance changes over time and currently  may be significantly higher or lower than stated.  Performance and Morningstar™ rating data current  to the most recent month-end is published online  at www.saturna.com or available by calling toll free  (800) SATURNA. Total returns are historical and include  change in share value and reinvestment of dividends  and capital gains, if any. Share price, yield and  return will vary and you may have a gain or loss  when you sell your shares. See individual Fund performance  discussions for further information. Funds that invest  in foreign securities may involve greater risk, including  political and economic uncertainties of foreign countries  as well as the risk of currency fluctuations.

Morningstar™, Inc. is an independent fund performancemonitor. Rankings are determined monthly from totalreturns by Morningstar™, by category as determinedby Morningstar™. The overall Morningstar™ ratingfor a fund is derived from a weighted average of theperformance figures associated with its 3-, 5-, and10-year (if applicable) Morningstar™ Rating.The average total return for a category is determinedby Saturna Capital, utilizing the Morningstar™ database.Results are shown for twelve months because the SextantFunds’ performance fees are based on the sameperiod.

| 2 |   | November 30, 2006 Annual Report |
|---|--------|---------------------------------|

| Fellow Shareowners: | (unaudited) |
|---------------------|-------------|

2006 was a profitable year for securities  investors, marking four years in a row of moderate  advances. Stocks provided solid gains, and the bond  markets also provided positive returns as interest  rates stabilized. We are pleased to report that both  Sextant Growth Fund and Sextant International Fund  provided double-digit returns for the fiscal year  ending November 30, 2006. Good performance is attracting  more investors, and the assets of all four Sextant  funds grew in 2006 (as they did in 2005). Sextant  International Fund had the largest total return (22%)  and growth in assets (135%).

Buoyed by moderate spending gains in all three major  sectors (consumers, business, government), liberal  trade policies, and slower commodity price increases,  corporate earnings continued growing in 2006. Higher  interest rates stopped the real estate boom, and  falling property prices and construction activity  are clearly slowing the economy. Consumer confidence  is waning, but the risk of a cyclical collapse appear  low. Foreign economies are generally performing better  than the US, a trend likely to continue.

  A number of our market indicators are flagging caution,  and we warn stock market investors to expect lesser  returns in 2007. We expect short-term rates to remain  at or above longer-term rates - usually a precursor  of stock market weakness. Inflation is controlled  and the Fed’s increase in short-term interest  rates is near conclusion, meaning 2007 could finally  be the year for bonds to shine. Slower corporate  earnings growth rates will hamper stock prices, but  price / earnings multiples have room to expand.

 The no-load Sextant Funds are designed to address  a broad spectrum of investment needs. Again in 2006,  higher equity Fund returns reflected the higher risks  of equities - just as expected. All Sextant Funds  stress low operating expenses and employ a “fulcrum” advisory  fee structure that rewards or penalizes Saturna Capital  for investment results. Contrary to popular wisdom,  a higher fund advisory fee that results from superior  investment performance under a fulcrum advisory fee  structure and consequently a higher fund expense  ratio is actually in the best interests of shareowners. 

For the fiscal year ended November 30, 2006, comparative  total returns and percentile Morningstar™ category  rankings (1 is best)† are:

| Sextant Fund    | Total Return | vs. Morningstar™† | Total Return | Rank (category size) † |
|-----------------|--------------|-------------------------------|--------------|------------------------------|
|                 |
| Short-Term Bond | 4.41%        | Short-term Bond               | 4.40%        | 43 (435)                     |
|                 |
| Bond Income     | 4.73%        | Long-term Bond                | 6.70%        | 92 (45)                      |
|                 |
| Growth          | 10.06%       | Mid-Cap Growth                | 10.09%       | 49 (997)                     |
|                 |
| International   | 21.85%       | Foreign Large Blend           | 27.17%       | 96 (634)                     |

Two important changes were implemented  by the Sextant Funds in 2006. After long consideration,  the Trustees recommended and the shareowners subsequently  approved a Rule 12b-1 distribution plan. The Sextant  Growth and Sextant International Funds are being  made available at the major mutual fund supermarkets,  such as Fidelity Investments and Charles Schwab,  which should aid asset growth in these funds. The  supermarkets provide useful services such as centralized  investor accounts, but require a fee from the distributor  (which now gains revenue from the 12b-1 plan) to  do so. Secondly, the trustees approved a fifth Sextant  fund (expected to be available this Spring) designed  to simplify investing by retirement plan accounts  by incorporating a balance of stocks and bonds in  one fund.

Further information on each Fund is found in its  section of this report. Operating expenses are well  below industry averages. Perhaps uniquely, equity  portfolio brokerage commission expenses are entirely  borne by the adviser. Consequently, the Sextant Funds  can not use portfolio brokerage to pay any expenses  of the Funds or the adviser. In the footnotes, you  will notice another unusual feature of the Sextant  funds: on average, more than 30% of each Sextant  Fund is owned by the trustees, officers, and their  related accounts. Our portfolio managers welcome  your comments and suggestions. We invite you to invest  your money with ours.
|   | Nicholas Kaiser, President(Manager, Sextant Growth, Sextant International) | Phelps McIlvaine, Vice President(Manager, Sextant Short-Term Bond, Sextant Bond Income) |
|--------|----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|

| November 30, 2006 Annual Report |   | 3 |
|---------------------------------|--------|---|

| Rating* | Issuer                                | Coupon/Maturity             | Face Amount | Market Value | Percentage |
|---------|---------------------------------------|-----------------------------|-------------|--------------|------------|
|         |
|    | Cosmetics & Toiletries                |                        |
| A       | Avon Products Inc.                    | 6.55% due 8/1/2007          | $95,000     | $94,907      | 3.2%       |
|         |
|    | Diversified Operations                |                        |
| A       | First Data Corp.                      | 4.50% due 6/15/2010         | 100,000     | 98,317       | 3.3%       |
|         |
|    | Finance & Insurance                   |                        |
| AA-     | HSBC Finance Corp.                    | 6.375% due 10/15/2011       | 100,000     | 105,196      | 3.6%       |
| A+      | Lehman Brothers Holdings              | 5.75% due 4/25/2011         | 100,000     | 101,443      | 3.4%       |
|         |                                       |
|    | Subtotal                              | 200,000                     | 206,639     | 7.0%         |
|         |
|    | Food & Beverages                      |                        |
| BBB     | Fortune Brands                        | 5.125%        due 1/15/2011 | 120,000     | 118,515      | 4.1%       |
| A+      | W M Wrigley Jr. Co.                   | 4.30%        due 7/15/2010  | 100,000     | 97,813       | 3.3%       |
|         |                                       |
|    | Subtotal                              | 220,000                     | 216,328     | 7.4%         |
|         |
|    | Machinery                             |                        |
| A       | Caterpillar Inc.                      | 7.25%        due 9/15/2009  | 100,000     | 105,684      | 3.6%       |
| A-      | Rockwell Automation International     | 6.15%        due 1/15/2008  | 95,000      | 95,376       | 3.3%       |
|         |                                       |
|    | Subtotal                              | 195,000                     | 201,060     | 6.9%         |
|         |
|    | Medical Drugs                         |                        |
| A       | Amgen                                 | 6.50%        due 12/1/2007  | 90,000      | 90,530       | 3.1%       |
|         |
|    | Oil & Gas                             |                        |
| A-      | ConocoPhillips Co.                    | 8.75%        due 5/25/2010  | 100,000     | 111,743      | 3.8%       |
|         |
|    | Retail-Discount & Variety             |                        |
| A-      | TJ X Companies Inc.                   | 7.45%        due 12/15/2009 | 95,000      | 101,484      | 3.5%       |
|         |
|    | Telecommunications                    |                        |
| BBB+    | Southwestern Bell Telephone           | 6.625%        due 7/15/2007 | 95,000      | 95,151       | 3.2%       |
| A-      | Verizon Wireless Capital              | 5.375        due 12/15/2006 | 82,000      | 81,511       | 2.8%       |
|         |                                       |
|    | Subtotal                              | 177,000                     | 176,662     | 6.0%         |
|         |
|    | U.S. Government                       |                        |
| AAA     | U.S. Treasury Note                    | 4.00%        due 6/15/2009  | 200,000     | 197,500      | 6.7%       |
| AAA     | U.S. Treasury Note                    | 4.00%        due 4/15/2010  | 200,000     | 197,062      | 6.7%       |
|         |                                       |
|    | Subtotal                              | 400,000                     | 394,562     | 13.7%        |
|         |
|    | U.S. Government Agency                |                        |
| AAA     | Federal Farm Credit Bank              | 4.62%        due 12/7/2009  | 100,000     | 98,908       | 3.4%       |
| AAA     | Federal Farm Credit Bank              | 5.79%        due 6/5/2013   | 200,000     | 203,402      | 6.9%       |
| AAA     | Federal Home Loan Bank                | 4.60%        due 5/18/2009  | 120,000     | 118,872      | 4.1%       |
| AAA     | Federal Home Loan Bank                | 4.00        due 2/27/2014   | 300,000     | 297,510      | 10.1%      |
| AAA     | Federal Home Loan Mortgage            | 4.125%        due 11/6/2009 | 120,000     | 117,792      | 4.0%       |
| AAA     | Federal National Mortgage Association | 4.00%        due 2/23/2010  | 120,000     | 119,512      | 4.1%       |
|         |                                       |
|    | Subtotal                              | 960,000                     | 955,996     | 32.6%        |

| 4 |   | November 30, 2006 Annual Report | (The accompanying notes are an integral part of these financial statements.) |
|---|--------|---------------------------------|------------------------------------------------------------------------------|

| Rating*                           | Issuer                    | Coupon/Maturity             | Face Amount | Market Value | Percentage |
|-----------------------------------|---------------------------|-----------------------------|-------------|--------------|------------|
|                                   |
|                              | Utilities                 |                        |
| BBB                               | PSI        Energy         | 7.85%        due 10/15/2007 | $90,000     | $91,585      | 3.1%       |
| BBB+                              | Scottish        Power PLC | 4.91%        due 3/15/2010  | 100,000     | 99,325       | 3.1%       |
|                                   |                           |
|                              | Subtotal                  | 190,000                     | 190,910     | 6.5%         |
|                                   |
| Total Investments                 | (Cost = $2,848,892)       | $2,822,000                  | $2,839,138  | 96.7%        |
|                                   |
| Other Assets (net of liabilities) |                      |                        | 98,234      | 3.3%         |
|                                   |
| Total Net Assets                  |                      |                        | $2,937,372  | 100.0%       |
|                                   |

 

 

 

 

 

| (The accompanying notes are an integral part of these financial statements.) | November 30, 2006 Annual Report |   | 5 |
|------------------------------------------------------------------------------|---------------------------------|--------|---|

| Financial Highlights                                                     | Year Ended November 30,                                                                    |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
| Selected data per share of capital stock outstanding throughout the year | 2006                                                                                       | 2005 | 2004 | 2003 | 2002 |
|                                                                          |
| Net asset value at beginning of year                                     | $4.85                                                                                      | $4.97 | $5.09 | $5.07 | $5.10 |
|                                                                     | Income from investment operations                                                          |
|                                                                     | Net investment income                                                                      | 0.16 | 0.17 | 0.19 | 0.23 | 0.27 |
|                                                                     | Net gains or losses on securities (both realized and unrealized)                           | 0.05 | (0.12) | (0.12) | 0.02 | (0.02) |
|                                                                          |
| Total from investment operations                                         | 0.21                                                                                       | 0.05 | 0.07 | 0.25 | 0.25 |
|                                                                          |
|                                                                     | Less distributions                                                                         |
|                                                                     | Dividends (from net investment income)                                                     | (0.16) | (0.17) | (0.19) | (0.23) | (0.28) |
|                                                                          |
| Total distributions                                                      | (0.16)                                                                                     | (0.17) | (0.19) | (0.23) | (0.28) |
|                                                                          |
|                                                                          |
| Net asset value at end of year                                           | $4.90                                                                                      | $4.85 | $4.97 | $5.09 | $5.07 |
|                                                                          |
| Total Return                                                             | 4.41%                                                                                      | 0.96% | 1.41% | 5.00% | 4.90% |
|                                                                          |
|                                                                     | Ratios / Supplemental Data                                                                 |
|                                                                     | Net assets ($000), at end of year                                                          | $2,937 | $2,557 | $2,255 | $2,259 | $2,177 |
|                                                                     | Ratio of expenses to average net assets                                                    |
|                                                                     | Before fee waivers and custody fee credits                                                 | 1.39% | 1.23% | 1.14% | 1.17% | 1.14% |
|                                                                     | After fee waivers and custody fee credits                                                  | 0.57% | 0.59% | 0.58% | 0.60% | 0.93% |
|                                                                     | Ratio of net investment income after fee waivers and custody credits to average net assets | 3.41% | 3.35% | 3.80% | 4.47% | 5.23% |
|                                                                          |
| Portfolio turnover rate                                                  | 41%                                                                                        | 33% | 37% | 22% | 28% |
|                                                                          |
| 1 Redemption penalty adopted March 29, 2005                              | *Amount is less than $0.01                                                                 |

 
| Statement of Assets and Liabilities                      | As of November 30, 2006                                          |
|----------------------------------------------------------|------------------------------------------------------------------|
|                                                          |
| Assets                                                   |
|                                                     | Bond investments (Cost $2,848,892)                               | $2,839,138 |   |
|                                                     | Cash                                                             | 58,979 |   |
|                                                     | Interest      receivable                                         | 43,096 |   |
|                                                     | Receivable      for Fund shares sold                             | 6,000 |   |
|                                                          |                                                                  |
|                                                     | Total Assets                                                     |   | $2,947,213 |
|                                                          |
| Liabilities                                              |
|                                                     | Payable for Fund shares redeemed                                 | 6,900 |   |
|                                                     | Other liabilities                                                | 2,289 |   |
|                                                     | Accrued 12b-1 Fees                                               | 576 |   |
|                                                     | Distribution payable                                             | 76 |   |
|                                                          |                                                                  |
|                                                     | Total liabilities                                                |   | 9,841 |
|                                                          |
| Net Assets                                               | $2,937,372                                                       |
|                                                          |
| Fund shares outstanding                                  | 600,079                                                          |
|                                                          |
| Analysis of Net Assets                                   |
|                                                     | Paid in Capital (unlimited shares authorized, without par value) | 2,996,083 |   |
|                                                     | Undistributed net investment income                              | 1,660 |   |
|                                                     | Accumulated net realized loss                                    | (50,617) |   |
|                                                     | Unrealized net depreciation on investments                       | (9,754) |   |
|                                                          |                                                                  |
|                                                     | Net Assets applicable to Fund shares outstanding                 |   | $2,937,372 |
|                                                          |
| Net Asset Value, Offering and Redemption price per share | $4.90                                                            |
|                                                          |

| 6 |   | November 30, 2006 Annual Report | (The accompanying notes are an integral part of these financial statements.) |
|---|--------|---------------------------------|------------------------------------------------------------------------------|

 

| Statement        of Changes in Net Assets    | Year endedNov. 30, 2006                              | Year endedNov. 30, 2005 |
|----------------------------------------------|------------------------------------------------------|-------------------------|
|                                              |
| Increase in Net Assets                       |
| From operations                              |
|                                         | Net investment income                                | $87,091                 | $82,195 |
|                                         | Net realized loss on investments                     | (10,889)                | (6,540) |
|                                         | Net increase (decrease) in unrealized appreciation   | 34,663                  | (49,766) |
|                                              |                                                      |
|                                         | Net increase in net assets                           | 110,885                 | 25,889 |
|                                              |                                                      |
| Dividends to shareowners from                |
|                                              |                                                      |
|                                         | Net investment income                                | (85,431)                | (83,151) |
|                                              |                                                      |
| From Fund share transactions                 |
|                                         | Proceeds from sales of shares                        | 828,422                 | 570,038 |
|                                         | Value of shares issued in reinvestment of dividends  | 84,144                  | 81,918 |
|                                              |                                                      |
|                                         | 912,566                                              | 651,956                 |
|                                              |                                                      |
|                                         | Early redemption penalties retained                  | 64                      | 39 |
|                                         | Cost of shares redeemed                              | (557,227)               | (293,595) |
|                                              |                                                      |
|                                         | Net increase in net assets                           | 355,403                 | 358,400 |
|                                              |
| Total      increase in net assets            | $380,827                                             | $301,138                |
|                                              |
| Net Assets                                   |
|                                         | Beginning of year                                    | 2,556,545               | 2,255,407 |
|                                         | End of year                                          | $2,937,372              | $2,556,545 |
|                                              |                                                      |
|                                         | Undistributed net investment income                  | 1,660                   | - |
|                                              |
| Shares of the Fund sold and redeemed         |
|                                         | Number of shares sold                                | 170,721                 | 115,934 |
|                                         | Number of shares issued in reinvestment of dividends | 17,342                  | 16,765 |
|                                              |                                                      |
|                                         | 188,063                                              | 132,699                 |
|                                              |                                                      |
|                                         | Number of shares redeemed                            | (114,974)               | (59,815) |
|                                              |
| Net increase in number of shares outstanding | 73,089                                               | 72,884                  |
|                                              |

| Statement of Operations                              | For the year ended November 30, 2006                    |
|------------------------------------------------------|---------------------------------------------------------|
|                                                      |
| Investment income                                    |
|                                                 | Interest income                                         | $101,545 |   |
|                                                 | Other income                                            | 68 |   |
|                                                      |                                                         |
|                                                 | Gross investment income                                 |   | $101,613 |
|                                                      |
| Expenses                                             |
|                                                 | Investment adviser and administration fees              | 15,432 |   |
|                                                 | Filing and registrations fees                           | 9,825 |   |
|                                                 | Audit fees                                              | 2,856 |   |
|                                                 | Custodian fees                                          | 1,531 |   |
|                                                 | Chief compliance officer expenses                       | 1,269 |   |
|                                                 | Distribution fees                                       | 1,124 |   |
|                                                 | Insurance                                               | 1,046 |   |
|                                                 | Printing and postage                                    | 1,038 |   |
|                                                 | Trustee fees                                            | 643 |   |
|                                                 | Other      expenses                                     | 455 |   |
|                                                 | Legal fees                                              | 420 |   |
|                                                      |                                                         |  |
|                                                 | Total gross expenses                                    | 35,639 |   |
|                                                      |                                                         |  |
|                                                 | Less adviser fees waived                                | (19,082) |   |
|                                                 | Less custodian fees waived                              | (2,035) |   |
|                                                      |                                                         |
|                                                 | Net expenses                                            |   | 14,522 |
|                                                      |                                                         |
|                                                 | Net investment income                                   |   | 87,091 |
|                                                      |
| Net realized loss on investments                     |
|                                                 | Proceeds from sales                                     | 1,001,313 |   |
|                                                 | Less cost of securities sold (based on identified cost) | 1,012,212 |   |
|                                                      |                                                         |
|                                                 | Realized net loss                                       |   | (10,899) |
|                                                      |
| Unrealized gain on investments                       |
|                                                 | End of year                                             | (9,754) |   |
|                                                 | Beginning of year                                       | (44,417) |   |
|                                                 | Increase in unrealized gain for the year                |   | 34,663 |
|                                                      |                                                         |
|                                                 | Net realized and unrealized gain                        |   | 23,764 |
|                                                      |
| Net increase in net assets resulting from operations | $110,855                                                |
|                                                      |

 

 

| (The accompanying notes are an integral part of these financial statements.) | November 30, 2006 Annual Report |   | 7 |
|------------------------------------------------------------------------------|---------------------------------|--------|---|

|                     |
|---------------------|
| Ratings Established | By Adviser | By Standard & Poor's | By Moody's Investor Services |
| AAA                 | 46.0% | 39.3% | 42.6% |
|                     |
| AA                  | 3.6% | 3.6% | 3.6% |
|                     |
| A                   | 33.3% | 36.6% | 33.3% |
|                     |
| BBB                 | 13.8% | 10.5% | 10.6% |
|                     |
| Unrated             | 0.0% | 6.7% | 6.6% |
|                     |
| Cash                | 3.3% | 3.3% | 3.3% |
|                     |

Steadying short-term interest rates helped the Fund’s  total return, as bond prices increased. Expense fee  waivers also helped performance, and will continue  in 2007. The table (right) provides a summary of  portfolio holdings by bond quality ratings as of  November 30, 2006.

We plan to increase portfolio weighting in corporate  bonds and reduce exposure to US Treasury and government  agency positions. Globalization limits the impact  of US economic inefficiencies, as substitutes are  imported from less onerous foreign economies. Our  expectation is another year of solid real returns  for the Fund, earned without taking substantial market  risks.

|                                                                                                            |
|------------------------------------------------------------------------------------------------------------|
| Sextant        Short Term Bond Fund vs. Citigroup Gov./Corp.        Inv. Grade Index 1-3 Years (unaudited) |
|                                                                                                            |
|                                                                                                            |

| 8 |   | November 30, 2006 Annual Report |
|---|--------|---------------------------------|

| Rating* | Issuer                                         | Coupon/Maturity               | Face          Amount | Market          Value | Percentage |
|---------|------------------------------------------------|-------------------------------|----------------------|-----------------------|------------|
|         |
|    | Agricultural                                   |                          |
| A       | Archer          Daniels Midland                | 7.00%          due 2/1/2031   | $100,000             | $118,933              | 3.5%       |
|         |
|    | Automotive                                     |                          |
| BBB     | AutoZone          Inc.                         | 5.50%          due 11/15/2015 | 95,000               | 92,859                | 2.7%       |
|         |
|    | Finance & Insurance                            |                          |
| A+      | CitiCorp                                       | 7.25%          due 10/15/2011 | 50,000               | 54,616                | 1.6%       |
| A       | Comerica          Bank                         | 7.125%          due 12/1/2013 | 50,000               | 52,621                | 1.6%       |
| AA      | Norwest          Financial Inc.                | 6.85%          due 7/15/2009  | 50,000               | 51,777                | 1.5%       |
|         |                                                |
|    | Subtotal                                       | 150,000                       | 159,014              | 4.7%                  |
|         |
|    | Building          Products                     |                          |
| BBB+    | Masco                                          | 7.125%          due 8/15/2013 | 60,000               | 62,122                | 1.8%       |
|         |
|    | Chemicals                                      |                          |
| A       | Air          Products & Chemicals          | 8.75%          due 4/15/2021  | 50,000               | 64,492                | 1.9%       |
|         |
|    | Diversified          Financial Services        |                          |
| AAA     | General          Electric Capital Corp.        | 8.125%          due 5/15/2012 | 60,000               | 68,344                | 2.0%       |
|         |
|    | Electric          Utilities                    |                          |
| A       | Commonwealth          Edison Corp.             | 7.50%          due 7/1/2013   | 50,000               | 54,580                | 1.6%       |
| A       | Florida          Power & Light             | 5.95          due 10/1/2033   | 100,000              | 106,259               | 3.2%       |
| BBB+    | Sempra          Energy Corp.                   | 7.95          due 3/1/2010    | 50,000               | 53,687                | 1.6%       |
|         |                                                |
|    | Subtotal                                       | 200,000                       | 214,526              | 6.4%                  |
|         |
|    | Electronics                                    |                          |
| A-      | Koninlijke          Phillips Electronics Corp. | 7.25%          due 8/15/2013  | 50,000               | 56,149                | 1.6%       |
|         |
|    | Food                                           |                          |
| BBB     | Conagra          Inc.                          | 7.875%          due 9/15/2010 | 33,000               | 35,745                | 1.0%       |
| A+      | Hershey          Foods Co.                     | 6.95%          due 8/15/2012  | 50,000               | 54,137                | 1.6%       |
| BBB     | HJ          Heinz Co.                          | 6.00%          due 3/15/2012  | 75,000               | 76,644                | 2.3%       |
|         |                                                |
|    | Subtotal                                       | 158,000                       | 166,526              | 4.9%                  |
|         |
|    | Insurance                                      |                          |
| A+      | Allstate          Corp.                        | 7.50%          due 6/15/2013  | 50,000               | 56,017                | 1.7%       |
| A+      | Progressive          Corp.                     | 7.00%          due 10/1/2013  | 75,000               | 81,986                | 2.4%       |
| A-      | XL          Capital (Europe)                   | 6.50%          due 1/15/2012  | 90,000               | 94,979                | 2.8%       |
|         |                                                |
|    | Subtotal                                       | 215,000                       | 232,982              | 6.9%                  |
|         |
|    | Investment          Finance                    |                          |
| A       | Bear          Stearns                          | 3.50%          due 6/27/2008  | 154,000              | 144,467               | 4.3%       |
| A+      | Morgan          Stanley Dean Witter Disc.      | 6.75%          due 10/15/2013 | 50,000               | 53,575                | 1.6%       |
| AA      | Paine          Webber Group                    | 7.625%          due 2/15/2014 | 50,000               | 56,703                | 1.7%       |
|         |                                                |
|    | Subtotal                                       | 254,000                       | 254,745              | 7.6%                  |

| (The          accompanying notes are an integral part of          these financial statements.) | November          30, 2006 Annual Report |   | 9 |
|------------------------------------------------------------------------------------------------|------------------------------------------|--------|---|

| Rating*                                    | Issuer                                       | Coupon/Maturity               | Face          Amount | Market          Value | Percentage |
|--------------------------------------------|----------------------------------------------|-------------------------------|----------------------|-----------------------|------------|
|                                            |
|                                       | Machinery                                    |                          |
| A                                          | Caterpillar          Inc.                    | 9.375%          due 8/15/2011 | $40,000              | $47,429               | 1.4%       |
| A-                                         | Deere          & Co.                     | 8.10%          due 5/15/2030  | 95,000               | 126,727               | 3.7%       |
|                                            |                                              |
|                                       | Subtotal                                     | 135,000                       | 174,156              | 5.1%                  |
|                                            |
|                                       | Medical          Supplies                    |                          |
| A                                          | Becton          Dickinson Corp.              | 7.15%          due 10/1/2009  | 40,000               | 41,471                | 1.2%       |
|                                            |
|                                       | Oil          & Gas                       |                          |
| A                                          | Baker          Hughes Inc.                   | 6.00%          due 2/15/2009  | 20,000               | 20,308                | 0.6%       |
| AA-                                        | Texaco          Capital                      | 8.625%          due 6/30/2010 | 40,000               | 44,186                | 1.3%       |
|                                            |                                              |
|                                       | Subtotal                                     | 60,000                        | 64,494               | 1.9%                  |
|                                            |
|                                       | Office          Supplies                     |                          |
| A-                                         | Avery          Dennison Corp.                | 6.00%          due 1/15/2033  | 95,000               | 98,516                | 2.9%       |
|                                            |
|                                       | Real          Estate                         |                          |
| BBB+                                       | Archstone          Smith Opr. Trust          | 5.625%          due 8/15/2014 | 50,000               | 49,974                | 1.5%       |
|                                            |
|                                       | Retail                                       |                          |
| A                                          | Dayton          Hudson Corp. (Target Stores) | 10.00%          due 1/01/2011 | 50,000               | 58,291                | 1.7%       |
| A                                          | Lowe's          Companies                    | 8.25%          due 6/01/2010  | 50,000               | 54,772                | 1.6%       |
| BBB                                        | May          Department Stores Co.           | 8.00%          due 7/15/2012  | 50,000               | 54,219                | 1.6%       |
| AA                                         | Wal-Mart          Stores                     | 7.25%          due 6/1/2013   | 45,000               | 49,949                | 1.5%       |
|                                            |                                              |
|                                       | Subtotal                                     | 195,000                       | 217,231              | 6.4%                  |
|                                            |
|                                       | Transportation                               |                          |
| BBB+                                       | Southwest          Airlines Co.              | 6.50%          due 3/01/2012  | 75,000               | 79,728                | 2.4%       |
| BBB-                                       | U.S.          Freightways Corp.              | 8.50%          due 4/15/2010  | 50,000               | 53,531                | 1.6%       |
|                                            |                                              |
|                                       | Subtotal                                     | 125,000                       | 133,259              | 4.0%                  |
|                                            |
|                                       | U.S.          Government                     |                          |
| AAA                                        | U.S.          Treasury Bonds                 | 5.25%          due 2/15/2029  | 277,000              | 299,897               | 8.9%       |
| AAA                                        | U.S.          Treasury Bonds                 | 7.125%          due 2/15/2023 | 110,000              | 140,491               | 4.2%       |
|                                            |                                              |
|                                       | Subtotal                                     | 387,000                       | 440,388              | 13.1%                 |
|                                            |
|                                       | U.S.          Government Agency              |                          |
| AAA                                        | Federal          Farm Credit Bank            | 5.09%          due 2/17/2015  | 120,000              | 117,839               | 3.5%       |
| AAA                                        | Federal          Farm Credit Bank            | 6.25%          due 8/18/2021  | 150,000              | 152,482               | 4.5%       |
| AAA                                        | Federal          Home Loan Bank              | 5.55%          due 4/13/2015  | 100,000              | 99,247                | 2.9%       |
| AAA                                        | Federal          Home Loan Mortgage          | 5.00%          due 8/26/2009  | 100,000              | 98,531                | 2.9%       |
| AAA                                        | Federal          National Mortgage Assoc.    | 5.00%          due 4/10/2015  | 100,000              | 97,891                | 2.9%       |
|                                            |                                              |
|                                       | Subtotal                                     | 570,000                       | 565,990              | 16.7%                 |
|                                            |
| Total          Investments                 | (Cost          = $3,180,425)                 | $3,049,000                    | $3,276,441           | 96.8%                 |
|                                            |
| Other          Assets (net of liabilities) |                                         |                          | 107,985              | 3.2%                  |
|                                            |
| Total          Net Assets                  |                                         |                          | $3,384,426           | 100.0%                |
|                                            |

| 10 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

| Financial          Highlights                                                              | Year          Ended November 30,                                                                             |
|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Selected          data per share of capital stock outstanding          throughout the year | 2006                                                                                                         | 2005 | 2004 | 2003 | 2002 |
|                                                                                            |
| Net          asset value at beginning of year                                              | $4.92                                                                                                        | $5.06 | $5.07 | $4.97 | $4.81 |
|                                                                                       | Income          from investment operations                                                                   |
|                                                                                       | Net          investment income                                                                               | 0.22 | 0.21 | 0.22 | 0.22 | 0.26 |
|                                                                                       | Net          gains or losses on securities (both realized          and unrealized)                           | 0.00 | (0.14) | (0.01) | 0.10 | 0.16 |
|                                                                                            |
| Total          from investment operations                                                  | 0.22                                                                                                         | 0.07 | 0.21 | 0.32 | 0.42 |
|                                                                                            |
|                                                                                       | Less          distributions                                                                                  |
|                                                                                       | Dividends          (from net investment income)                                                              | (0.22) | (0.21) | (0.22) | (0.22) | (0.26) |
|                                                                                            |
| Total          distributions                                                               | (0.22)                                                                                                       | (0.21) | (0.22) | (0.22) | (0.26) |
|                                                                                            |
|                                                                                            |
| Net          asset value at end of year                                                    | $4.92                                                                                                        | $4.92 | $5.06 | $5.07 | $4.97 |
|                                                                                            |
| Total          Return                                                                      | 4.73%                                                                                                        | 1.40% | 4.26% | 6.52% | 9.02% |
|                                                                                            |
|                                                                                       | Ratios          / Supplemental Data                                                                          |
|                                                                                       | Net          assets ($000), at end of year                                                                   | $3,384 | $3,050 | $2,643 | $2,272 | $2,105 |
|                                                                                       | Ratio          of expenses to average net assets                                                             |
|                                                                                       | Before          fee waivers and custody fee credits                                                          | 1.27% | 0.97% | 0.89% | 1.15% | 1.06% |
|                                                                                       | After          fee waivers and custody fee credits                                                           | 0.90% | 0.94% | 0.87% | 0.97% | 0.72% |
|                                                                                       | Ratio          of net investment income after fee waivers          and custody credits to average net assets | 4.64% | 4.26% | 4.47% | 4.29% | 5.40% |
|                                                                                            |
| Portfolio          turnover rate                                                           | 36%                                                                                                          | 4% | 0% | 0% | 29% |
|                                                                                            |
| 1          Redemption penalty adopted March 29, 2005                                       | *Amount          is less than $0.01                                                                          |

 
| Statement          of Assets and Liabilities                               | As          of November 30, 2006                                                   |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                            |
| Assets                                                                     |
|                                                                       | Bond          investments (Cost $3,180,425)                                        | $3,276,441 |   |
|                                                                       | Cash                                                                               | 57,969 |   |
|                                                                       | Interest          receivable                                                       | 52,931 |   |
|                                                                       | Insurance          reserve premium                                                 | 400 |   |
|                                                                       | Receivables          for Fund shares sold                                          | 50 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          Assets                                                              |   | $3,387,791 |
|                                                                            |
| Liabilities                                                                |
|                                                                       | Accrued          expenses                                                          | 2,553 |   |
|                                                                       | Accrued          12b-1 Fees                                                        | 676 |   |
|                                                                       | Distributions          payable                                                     | 72 |   |
|                                                                       | Due          to affiliates                                                         | 64 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          liabilities                                                         |   | 3,365 |
|                                                                            |
| Net          Assets                                                        | $3,384,426                                                                         |
|                                                                            |
| Fund          shares outstanding                                           | 687,584                                                                            |
|                                                                            |
| Analysis          of Net Assets                                            |
|                                                                       | Paid          in Capital (unlimited shares authorized,          without par value) | $3,324,909 |   |
|                                                                       | Accumulated          net realized loss                                             | (36,499) |   |
|                                                                       | Unrealized          net appreciation on investments                                | 96,016 |   |
|                                                                            |                                                                                    |
|                                                                       | Net          Assets applicable to Fund shares outstanding                          |   | $3,384,426 |
|                                                                            |
| Net          Asset Value, Offering and Redemption price          per share | $4.92                                                                              |
|                                                                            |

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 11 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

 

| Statement            of Changes in Net Assets           | Year            ended            Nov. 30, 2006                  | Year            ended            Nov. 30, 2005 |
|---------------------------------------------------------|-----------------------------------------------------------------|------------------------------------------------|
|                                                         |
| Increase            in Net Assets                       |
| From            operations                              |
|                                                    | Net            investment income                                | $142,386                                       | $126,312 |
|                                                    | Net            realized gain (loss) on investments              | (14,375)                                       | 826 |
|                                                    | Net            increase (decrease) in unrealized appreciation   | 21,936                                         | (86,448) |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets                           | 149,947                                        | 40,690 |
|                                                         |                                                                 |
| Dividends            to shareowners from                |
|                                                         |                                                                 |
|                                                    | Net            investment income                                | (142,386)                                      | (126,361) |
|                                                         |                                                                 |
| From            Fund share transactions                 |
|                                                    | Proceeds            from sales of shares                        | 541,154                                        | 787,201 |
|                                                    | Value            of shares issued in reinvestment of dividends  | 141,047                                        | 124,959 |
|                                                         |                                                                 |
|                                                    | 682,201                                                         | 912,160                                        |
|                                                         |                                                                 |
|                                                    | Early            redemption penalties retained                  | 40                                             | 12 |
|                                                    | Cost            of shares redeemed                              | (355,481)                                      | (418,996) |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets                           | 326,760                                        | 493,176 |
|                                                         |
| Total            increase in net assets                 | $334,321                                                        | $407,505                                       |
|                                                         |
| Net            Assets                                   |
|                                                    | Beginning            of year                                    | 3,050,105                                      | 2,642,600 |
|                                                    | End            of year                                          | $3,384,426                                     | $3,050,105 |
|                                                         |
| Shares            of the Fund sold and redeemed         |
|                                                    | Number            of shares sold                                | 111,347                                        | 155,844 |
|                                                    | Number            of shares issued in reinvestment of dividends | 29,113                                         | 24,894 |
|                                                         |                                                                 |
|                                                    | 140,460                                                         | 180,738                                        |
|                                                         |                                                                 |
|                                                    | Number            of shares redeemed                            | (73,143)                                       | (83,147) |
|                                                         |
| Net            increase in number of shares outstanding | 67,317                                                          | 97,591                                         |
|                                                         |

| Statement            of Operations                              | For            the year ended            November 30, 2006                    |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                 |
| Investment            income                                    |
|                                                            | Interest            income                                                    | $169,882 |   |
|                                                            | Other            income                                                       | 25 |   |
|                                                                 |                                                                               |
|                                                            | Gross            investment income                                            |   | $169,907 |
|                                                                 |
| Expenses                                                        |
|                                                            | Investment            adviser and administration fees                         | 17,683 |   |
|                                                            | Filing            and registrations fees                                      | 10,399 |   |
|                                                            | Audit            fees                                                         | 3,403 |   |
|                                                            | Chief            compliance officer expenses                                  | 1,473 |   |
|                                                            | Distribution            fees                                                  | 1,325 |   |
|                                                            | Insurance                                                                     | 1,242 |   |
|                                                            | Custodian            fees                                                     | 1,128 |   |
|                                                            | Printing            and postage                                               | 1,078 |   |
|                                                            | Trustee            fees                                                       | 656 |   |
|                                                            | Legal            fees                                                         | 481 |   |
|                                                            | Other            expenses                                                     | 86 |   |
|                                                                 |                                                                               |  |
|                                                            | Total            gross expenses                                               | 38,954 |   |
|                                                                 |                                                                               |  |
|                                                            | Less            adviser fees waived                                           | (9,794) |   |
|                                                            | Less            custodian fees waived                                         | (1,639) |   |
|                                                                 |                                                                               |
|                                                            | Net            expenses                                                       |   | 27,521 |
|                                                                 |                                                                               |
|                                                            | Net            investment income                                              |   | 142,386 |
|                                                                 |
| Net            realized loss on investments                     |
|                                                            | Proceeds            from sales                                                | 1,067,670 |   |
|                                                            | Less            cost of securities sold (based on identified            cost) | 1,082,045 |   |
|                                                                 |                                                                               |
|                                                            | Realized            net loss                                                  |   | (14,375) |
|                                                                 |
| Unrealized            gain on investments                       |
|                                                            | End            of year                                                        | 96,016 |   |
|                                                            | Beginning            of year                                                  | 74,080 |   |
|                                                            | Increase            in unrealized gain for the year                           |   | 21,936 |
|                                                                 |                                                                               |
|                                                            | Net            realized and unrealized gain                                   |   | 7,561 |
|                                                                 |
| Net            increase in net assets resulting from operations | $149,947                                                                      |
|                                                                 |

 

 

| 12 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

|                                |
|--------------------------------|
| Ratings            Established | By            Adviser | By            Standard & Poor's | By            Moody's Investor Services |
| AAA                            | 31.8% | 22.9% | 22.9% |
|                                |
| AA                             | 6.0% | 6.0% | 12.3% |
|                                |
| A                              | 42.5% | 44.9% | 36.2% |
|                                |
| BBB                            | 16.5% | 14.1% | 16.5% |
|                                |
| Unrated                        | 0.0% | 8.9% | 8.9% |
|                                |
| Cash                           | 3.2% | 3.2% | 3.2% |
|                                |

The table (right) provides a summary of portfolio    holdings by bond quality ratings as of November    30, 2006.

We do not expect a prolonged yield curve inversion    or a recession. We will increase purchases of investment-grade,    corporate debt as opportunities allow. Use of US    Treasury securities will be decreased. We expect    another positive return for Bond Income Fund for    the year 2007.

|                                                                                                            |
|------------------------------------------------------------------------------------------------------------|
| Sextant            Bond Income Fund vs. Citigroup Broad Investment-Grade            Bond Index (unaudited) |
|                                                                                                            |
|                                                                                                            |

 

 

 

 

 

 

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 13 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

|                                        |
|----------------------------------------|
| Issue                                  | Quantity | Tax Cost | Market Value | Percentage |
| Common      Stocks (96.4%)             |
|                                        |
| Automotive                             |
| Oshkosh        Truck                   | 3,000 | $160,448 | $144,030 | 1.1% |
|                                        |
| Banking                                |
| Frontier        Financial              | 15,000 | 220,751 | 451,200 | 3.3% |
| Washington        Banking Company      | 6,250 | 83,121 | 105,313 | 0.8% |
| Washington        Mutual               | 6,750 | 44,124 | 294,840 | 2.1% |
|                                   |  |
|                                   | Subtotal | 347,996 | 851,353 | 6.2% |
|                                        |
| Computers                              |
| 3Com*                                  | 30,000 | 167,836 | 125,400 | 0.9% |
| Adobe        Systems*                  | 7,600 | 39,971 | 305,216 | 2.2% |
| Apple        Inc.*                     | 8,000 | 67,473 | 733,280 | 5.3% |
| Hewlett-Packard                        | 7,000 | 157,040 | 276,220 | 2.0% |
| Intuit*                                | 9,000 | 197,624 | 283,680 | 2.1% |
| MapInfo*                               | 8,000 | 114,181 | 106,000 | 0.8% |
| Oracle*                                | 15,000 | 115,139 | 285,750 | 2.1% |
| Symbol        Technologies             | 10,092 | 122,340 | 149,563 | 1.1% |
|                                   |  |
|                                   | Subtotal | 981,604 | 2,265,109 | 16.5% |
|                                        |
| Construction                           |
| KB        Home                         | 5,000 | 302,781 | 258,450 | 1.9% |
| Lowe's        Companies                | 6,500 | 109,802 | 196,040 | 1.4% |
| Weyerhaeuser                           | 4,200 | 246,845 | 271,656 | 2.0% |
|                                   |  |
|                                   | Subtotal | 659,428 | 726,146 | 5.3% |
|                                        |
| Diversified      Operations            |
| Honeywell        International         | 3,500 | 131,967 | 150,430 | 1.1% |
|                                        |
| Electronics                            |
| Advanced        Micro Devices*         | 10,000 | 41,708 | 215,700 | 1.6% |
| Agilent        Technologies*           | 8,000 | 218,552 | 254,720 | 1.9% |
| Harman        International Industries | 1,900 | 157,285 | 197,296 | 1.4% |
|                                   |  |
|                                   | Subtotal | 417,545 | 667,716 | 4.9% |
|                                        |
| Food                                   |
| Performance      Food Group*           | 3,000 | 96,917 | 81,180 | 0.6% |
| PepsiCo                                | 4,500 | 248,326 | 278,865 | 2.0% |
|                                   |  |
|                                   | Subtotal | 345,243 | 360,045 | 2.6% |
|                                        |
| Hotels        & Motels             |
| Red        Lion Hotels*                | 21,000 | 150,354 | 258,300 | 1.9% |
|                                        |
| Investments                            |
| Chubb                                  | 5,000 | 224,705 | 258,800 | 1.9% |
| Schwab        (Charles)                | 25,000 | 79,726 | 458,500 | 3.3% |
|                                   |  |
|                                   | Subtotal | 304,431 | 717,300 | 5.2% |
|                                        |

| 14 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

|                                           |
|-------------------------------------------|
| Issue                                     | Quantity | Tax Cost | Market Value | Percentage |
| Common      Stocks (96.4%)                |
|                                           |
| Machinery                                 |
| Regal-Beloit                              | 4,000 | $104,006 | $204,520 | 1.5% |
| Lincoln        Electric Holdings          | 4,000 | 180,617 | 243,400 | 1.8% |
|                                      |  |
|                                      | Subtotal | 284,623 | 447,920 | 3.3% |
|                                           |
| Medical                                   |
| Abott        Laboratories                 | 4,000 | 171,114 | 186,640 | 1.3% |
| Amgen*                                    | 3,700 | 111,703 | 262,848 | 1.9% |
| Barr        Laboratories*                 | 4,500 | 159,489 | 229,860 | 1.7% |
| Caremark        Rx                        | 5,000 | 139,942 | 236,500 | 1.7% |
| Genentech                                 | 2,000 | 179,816 | 163,500 | 1.2% |
| Ligand        Pharmaceuticals*            | 10,000 | 112,072 | 107,200 | 0.8% |
| Lilly        (Eli)                        | 3,500 | 249,361 | 187,565 | 1.4% |
| Pharmaceutical        Product Development | 15,000 | 67,174 | 473,850 | 3.4% |
| VCA        Antech*                        | 8,000 | 209,048 | 257,920 | 1.9% |
|                                      |  |
|                                      | Subtotal | 1,399,719 | 2,105,883 | 15.3% |
|                                           |
| Metal        Ores                         |
| Alcoa                                     | 6,000 | 189,042 | 187,020 | 1.3% |
| Phelps        Dodge                       | 2,660 | 76,218 | 327,108 | 2.4% |
|                                      |  |
|                                      | Subtotal | 265,260 | 514,200 | 3.7% |
|                                           |
| Oil        & Gas Production           |
| Devon        Energy                       | 3,000 | 185,020 | 220,110 | 1.6% |
| Noble        Drilling                     | 4,000 | 125,240 | 309,000 | 2.3% |
|                                      |  |
|                                      | Subtotal | 310,260 | 529,110 | 3.9% |
|                                           |
| Publishing                                |
| Wiley        (John) & Sons, Class A   | 5,000 | 134,777 | 198,900 | 1.5% |
|                                           |
| Retail                                    |
| Amazon.com*                               | 5,000 | 201,410 | 201,700 | 1.5% |
| Bed        Bath & Beyond*             | 5,000 | 176,186 | 193,900 | 1.4% |
| Best        Buy                           | 4,000 | 223,149 | 219,880 | 1.6% |
| Build-A-Bear        Workshop*             | 7,000 | 177,548 | 214,060 | 1.6% |
| Restoration        Hardware*              | 15,203 | 94,239 | 129,377 | 0.9% |
| Staples                                   | 6,000 | 144,720 | 152,820 | 1.1% |
|                                      |  |
|                                      | Subtotal | 1,017,252 | 1,111,737 | 8.1% |
|                                           |
| Steel                                     |
| Nucor                                     | 4,000 | 189,851 | 239,400 | 1.7% |
|                                           |
| Telecommunications                        |
| Trimble        Navigation*                | 7,000 | 202,081 | 335,790 | 2.5% |
|                                           |

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 15 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

|                                       |
|---------------------------------------|
| Issue                                 | Quantity | Tax Cost | Market Value | Percentage |
| Common      Stocks (96.4%)            |
|                                       |
| Transportation                        |
| Norfolk        Southern               | 4,500 | $185,235 | $221,625 | 1.6% |
| UAl        Corp.*                     | 5,500 | 183,801 | 223,190 | 1.6% |
| United        Parcel Service, Cl B    | 2,500 | 189,469 | 194,800 | 1.4% |
|                                  |  |
|                                  | Subtotal | 558,505 | 639,615 | 4.6% |
|                                       |
| Utilities                             |
| Duke        Energy                    | 6,000 | 175,259 | 190,320 | 1.4% |
| FPL        Group                      | 7,000 | 244,408 | 373,100 | 2.7% |
| IDACorp                               | 6,000 | 159,539 | 239,940 | 1.7% |
| Sempra        Energy                  | 3,000 | 116,395 | 163,500 | 1.2% |
|                                  |  |
|                                  | Subtotal | 695,601 | 966,860 | 7.0% |
|                                       |
| Total      Investments                | $8,556,945 | $13,229,844 | 96.4% |
|                                       |
| Other     Assets (net of liabilities) |  | 497,845 | 3.6% |
|                                       |
| Total        Net Assets               |  | $13,727,689 | 100.0% |
|                                       |

| Industry Allocation |
|---------------------|
|                     |

 

 
| Top Ten Holdings                        |
|-----------------------------------------|
|                                         |
| % of Fund Assets                        |
| Apple      Inc.                         | 5.3% |
|                                         |
| Pharmaceutical      Product Development | 3.4% |
|                                         |
| Schwab      (Charles)                   | 3.3% |
|                                         |
| Frontier      Financial                 | 3.3% |
|                                         |
| FPL      Group                          | 2.7% |
|                                         |
| Trimble      Navigation                 | 2.5% |
|                                         |
| Phelps      Dodge                       | 2.4% |
|                                         |
| Noble      Drilling                     | 2.3% |
|                                         |
| Adobe      Systems                      | 2.2% |
|                                         |
| Washington      Mutual                  | 2.1% |
|                                         |

 

 

 

 

| 16 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

| Financial          Highlights                                                              | Year          Ended November 30,                                                                         |
|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| Selected          data per share of capital stock outstanding          throughout the year | 2006                                                                                                     | 2005 | 2004 | 2003 | 2002 |
|                                                                                            |
| Net          asset value at beginning of year                                              | $17.11                                                                                                   | $14.20 | $12.91 | $10.64 | $11.90 |
|                                                                                       | Income          from investment operations                                                               |
|                                                                                       | Net          investment income                                                                           | (0.02) | (0.02) | 0.01 | (0.04) | (0.05) |
|                                                                                       | Net          gains or losses on securities (both realized          and unrealized)                       | 1.74 | 2.96 | 1.45 | 2.31 | (1.21) |
|                                                                                            |
| Total          from investment operations                                                  | 1.72                                                                                                     | 2.94 | 1.46 | 2.27 | (1.26) |
|                                                                                            |
|                                                                                       | Less          distributions                                                                              |
|                                                                                       | Dividends          (from net investment income)                                                          | - | *(0.00) | (0.01) | - | - |
|                                                                                       | Distributions          (from capital gains)                                                              | (0.17) | (0.03) | (0.16) | - | - |
|                                                                                            |
| Total          distributions                                                               | (0.17)                                                                                                   | (0.03) | (0.17) | 0.00 | 0.00 |
|                                                                                            |
|                                                                                            |
| Net        asset value at end of year                                                      | $18.66                                                                                                   | $17.11 | $14.20 | $12.91 | $10.64 |
|                                                                                            |
| Total        Return                                                                        | 10.06%                                                                                                   | 20.76% | 11.35% | 21.31% | (10.51)% |
|                                                                                            |
|                                                                                       | Ratios        / Supplemental Data                                                                        |
|                                                                                       | Net        assets ($000), at end of year                                                                 | $13,728 | $9,006 | $5,331 | $4,732 | $3,373 |
|                                                                                       | Ratio        of expenses to average net assets                                                           |
|                                                                                       | Before        fee waivers and custody fee credits                                                        | 1.25% | 1.28% | 0.80% | 1.20% | 1.17% |
|                                                                                       | After        fee waivers and custody fee credits                                                         | 1.21% | 1.24% | 0.78% | 1.14% | 1.11% |
|                                                                                       | Ratio        of net investment income after fee waivers        and custody credits to average net assets | (0.12)% | (0.17)% | 0.12% | (0.40)% | (0.48)% |
|                                                                                            |
| Portfolio        turnover rate                                                             | 11%                                                                                                      | 4% | 8% | 12% | 15% |
|                                                                                            |
| 1        Redemption penalty adopted March 29, 2005                                         | *Amount        is less than $0.01                                                                        |

 
| Statement          of Assets and Liabilities                               | As          of November 30, 2006                                                   |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                            |
| Assets                                                                     |
|                                                                       | Investments          (Cost $8,556,945)                                             | $13,229,844 |   |
|                                                                       | Cash                                                                               | 502,106 |   |
|                                                                       | Dividends          receivable                                                      | 11,711 |   |
|                                                                       | Receivable          for Fund shares sold                                           | 1,566 |   |
|                                                                       | Insurance          reserve premium                                                 | 1,214 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          Assets                                                              |   | $13,746,441 |
|                                                                            |
| Liabilities                                                                |
|                                                                       | Accrued          expenses                                                          | 9,814 |   |
|                                                                       | Due          to affiliates                                                         | 6,927 |   |
|                                                                       | Distribution          payable                                                      | 2,011 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          liabilities                                                         |   | 18,752 |
|                                                                            |
| Net          Assets                                                        | $13,727,689                                                                        |
|                                                                            |
| Fund          shares outstanding                                           | 735,599                                                                            |
|                                                                            |
| Analysis          of Net Assets                                            |
|                                                                       | Paid-in          capital (unlimited shares authorized, without          par value) | $9,054,750 |   |
|                                                                       | Accumulated          gains on investments                                          | 40 |   |
|                                                                       | Unrealized          net appreciation on investments                                | 4,672,899 |   |
|                                                                            |                                                                                    |
|                                                                       | Net          Assets applicable to Fund shares outstanding                          |   | $13,727,689 |
|                                                                            |
| Net          Asset Value, Offering and Redemption price          per share | $18.66                                                                             |
|                                                                            |

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 17 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

 

| Statement            of Changes in Net Assets           | Year            ended            Nov. 30, 2006                  | Year            ended            Nov. 30, 2005 |
|---------------------------------------------------------|-----------------------------------------------------------------|------------------------------------------------|
|                                                         |
| Increase            in Net Assets                       |
| From            operations                              |
|                                                    | Net            investment loss                                  | $(16,447)                                      | $(11,402) |
|                                                    | Net            realized gain on investments                     | 125,411                                        | 12,474 |
|                                                    | Net            increase  in unrealized appreciation             | 1,108,048                                      | 1,494,285 |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets                           | 1,217,012                                      | 1,495,357 |
|                                                         |                                                                 |
| Dividends            to shareowners from                |
|                                                         |                                                                 |
|                                                    | Net            investment income                                | -                                              | (2,289) |
|                                                    | Capital            gains distribution                           | (125,371)                                      | (12,474) |
|                                                         |                                                                 |
|                                                    |                                                                 | (125,371)                                      | (14,763) |
|                                                         |                                                                 |
| From            Fund share transactions                 |
|                                                    | Proceeds            from sales of shares                        | 5,675,771                                      | 2,709,260 |
|                                                    | Value            of shares issued in reinvestment of dividends  | 123,360                                        | 14,444 |
|                                                         |                                                                 |
|                                                    | 5,799,131                                                       | 2,723,704                                      |
|                                                         |                                                                 |
|                                                    | Early            redemption penalties retained                  | 1,423                                          | 53 |
|                                                    | Cost            of shares redeemed                              | (2,170,902)                                    | (528,970) |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets                           | 3,629,652                                      | 2,194,787 |
|                                                         |
| Total            increase in net assets                 | $4,721,293                                                      | $3,675,381                                     |
|                                                         |
| Net            Assets                                   |
|                                                    | Beginning            of year                                    | 9,006,396                                      | 5,331,015 |
|                                                    | End            of year                                          | $13,727,689                                    | $9,006,396 |
|                                                         |
| Shares            of the Fund sold and redeemed         |
|                                                    | Number            of shares sold                                | 323,519                                        | 186,540 |
|                                                    | Number            of shares issued in reinvestment of dividends | 6,611                                          | 844 |
|                                                         |                                                                 |
|                                                    | 330,130                                                         | 187,384                                        |
|                                                         |                                                                 |
|                                                    | Number            of shares redeemed                            | (120,843)                                      | (36,600) |
|                                                         |
| Net            increase in number of shares outstanding | 209,287                                                         | 150,784                                        |
|                                                         |

| Statement            of Operations                              | For            the year ended          November 30, 2006                      |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                 |
| Investment            income                                    |
|                                                            | Dividend            income                                                    | $146,289 |   |
|                                                                 |                                                                               |
|                                                            | Gross            investment income                                            |   | $146,289 |
|                                                                 |
| Expenses                                                        |
|                                                            | Investment            adviser and administration fees                         | 102,992 |   |
|                                                            | Filing            and registrations fees                                      | 19,844 |   |
|                                                            | Audit            fees                                                         | 13,817 |   |
|                                                            | Chief            compliance officer expenses                                  | 6,817 |   |
|                                                            | Distribution            fees                                                  | 5,693 |   |
|                                                            | Insurance                                                                     | 5,051 |   |
|                                                            | Printing            and postage                                               | 4,600 |   |
|                                                            | Custodian            fees                                                     | 4,241 |   |
|                                                            | Trustee            fees                                                       | 2,351 |   |
|                                                            | Legal            fees                                                         | 2,073 |   |
|                                                            | Other            expenses                                                     | 447 |   |
|                                                                 |                                                                               |  |
|                                                            | Total            gross expenses                                               | 167,926 |   |
|                                                                 |                                                                               |  |
|                                                            | Less            custodian fees waived                                         | (5,190) |   |
|                                                                 |                                                                               |
|                                                            | Net            expenses                                                       |   | 162,736 |
|                                                                 |                                                                               |
|                                                            | Net            investment income (loss)                                       |   | (16,447) |
|                                                                 |
| Net            realized loss on investments                     |
|                                                            | Proceeds            from sales                                                | 1,372,108 |   |
|                                                            | Less            cost of securities sold (based on identified            cost) | 1,246,697 |   |
|                                                                 |                                                                               |
|                                                            | Realized            net gain                                                  |   | 125,411 |
|                                                                 |
| Unrealized            gain on investments                       |
|                                                            | End            of year                                                        | 4,672,899 |   |
|                                                            | Beginning            of year                                                  | 3,564,851 |   |
|                                                            | Increase            in unrealized gain for the year                           |   | 1,108,048 |
|                                                                 |                                                                               |
|                                                            | Net            realized and unrealized gain                                   |   | 1,233,459 |
|                                                                 |
| Net            increase in net assets resulting from operations | $1,217,012                                                                    |
|                                                                 |

 

 

| 18 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

The Sextant Growth Fund seeks long-term growth      through investment in common stocks of U.S. domiciled      companies. It generally follows a value investment      approach, favoring companies with good fundamentals      and relatively low price/earnings and price/book      ratios. As illustrated in the pie chart on page      16, our portfolio is overweighted with computer      (largest holding Apple Computer up 35%) and medical      (largest holding Pharmaceutical Product Development    up 9%) issues. 

Income is not a consideration in portfolio selection,      but we favor companies that institute or increase      dividend payouts. Our low portfolio turnover      meant we realized only about 10% of our market      gains this year, minimizing the taxable capital    gains distribution at year-end.

A long-term approach is the best opportunity to    prosper: for the last ten years, the Fund provided    an 11.56% annualized total return. At that rate    of growth, investments almost triple in just ten    years - see the chart below..

|                                                                                          |
|------------------------------------------------------------------------------------------|
| Sextant            Growth Fund vs. S&P 500 Total Return            Index (unaudited) |
|                                                                                          |
|                                                                                          |

The    line graph compares Sextant Growth Fund's performance    to that of a broad-based stock market index, the    Standard & Poor's 500 Total Return Index. Comparison    of any mutual fund to a market index must be made    bearing in mind that the index is unmanaged, and    expense-free. Conversely, the fund will (1) be    actively managed, (2) have an objective other than    mirroring the index, such as limiting risk, (3)    bear various operational costs, (4) stand ready    to buy and sell its securities to shareowners on    a daily basis, and (5) provide a wide range of    services. The graph below compares $10,000 invested    in the Fund on November 30, 1996 (ten years ago),    compared to a similar amount invested in Standard & Poor's    500 Index. The graph shows that the investment    in the Fund would have risen to $29,857 versus  $21,698 in the Index. 

 

 

 

 

 

 

 

 

 

|  | November            30, 2006 Annual Report |   | 19 |
|--|--------------------------------------------|--------|----|

|                                              |
|----------------------------------------------|
| Issue                                        | Quantity | Tax        Cost | Market        Value | Country | Percentage |
| Common Stocks (87.9%)                        |
|                                              |
| Aircraft                                     |
| Embraer        Aircraft ADR                  | 3,400 | $105,058 | $141,576 | Brazil | 1.5% |
|                                              |
| Automotive                                   |
| Nissan        Motor ADR                      | 5,500 | 106,770 | 133,595 | Japan | 1.4% |
|                                              |
| Banking                                      |
| Australia      & New Zealand Banking ADS | 1,000 | 84,500 | 112,610 | Australia | 1.2% |
| AXA        ADS                               | 4,200 | 98,136 | 159,684 | France | 1.7% |
| Banco        Bilbao Vizcaya ADS              | 7,500 | 105,518 | 181,125 | Spain | 2.0% |
| ING        Groep ADS                         | 4,000 | 118,530 | 171,160 | Netherlands | 1.8% |
| Mitsubishi        Financial Group ADR        | 10,000 | 131,800 | 127,400 | Japan | 1.4% |
| Nomura        Holdings ADR                   | 10,000 | 187,836 | 174,600 | Japan | 1.9% |
| Toronto-Dominion        Bank                 | 2,400 | 70,709 | 140,664 | Canada | 1.5% |
|                                         |  |
|                                         | Subtotal | 797,029 | 1,067,243 |  | 11.5% |
|                                              |
| Bulding        Materials                     |
| CRH        plc ADR                           | 4,000 | 81,159 | 153,600 | Ireland | 1.7% |
| Hanson        plc ADR                        | 2,100 | 88,247 | 151,536 | United	    Kingdom | 1.6% |
| James        Hardie Industries NV ADS        | 3,000 | 83,041 | 99,750 | Netherlands | 1.1% |
|                                         |  |
|                                         | Subtotal | 252,447 | 404,886 |  | 4.4% |
|                                              |
| Business        Services                     |
| 51job        ADR*                            | 8,000 | 117,920 | 140,000 | Cayman	    Islands | 1.5% |
|                                              |
| Chemicals                                    |
| Arkema        ADS*                           | 65 | 1,857 | 3,192 | France | **0.0% |
| BASF        AG ADS                           | 1,700 | 120,102 | 157,437 | Germany | 1.7% |
|                                         |  |
|                                         | Subtotal | 121,959 | 160,629 |  | 1.7% |
|                                              |
| Computers                                    |
| Business        Objects ADS*                 | 7,000 | 60,510 | 271,740 | France | 2.9% |
| Dassault        Systems ADR                  | 3,000 | 146,427 | 164,400 | France | 1.8% |
| Satyam                                       | 6,000 | 108,750 | 140,100 | India | 1.5% |
|                                         |  |
|                                         | Subtotal | 315,687 | 576,240 |  | 6.2% |
|                                              |
| Consumer        Products                     |
| Coca-Cola        Femsa ADS                   | 4,300 | 82,844 | 153,037 | Mexico | 1.7% |
| Cadbury        Schweppes ADR                 | 2,500 | 102,335 | 103,775 | United    Kingdom | 1.1% |
|                                         |  |
|                                         | Subtotal | 185,179 | 256,812 |  | 2.8% |
|                                              |
| Electronics                                  |
| Sony                                         | 3,000 | 116,940 | 118,230 | Japan | 1.3% |
| Epcos        AG ADS*                         | 2,500 | 57,307 | 45,325 | Germany | 0.5% |
| Infineon        Technologies AG*             | 5,000 | 45,900 | 64,650 | Germany | 0.7% |
|                                         |  |
|                                         | Subtotal | 220,147 | 228,205 |  | 2.5% |
|                                              |

| 20 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

|                                            |
|--------------------------------------------|
| Issue                                      | Quantity | Tax          Cost | Market          Value | Country | Percentage |
| Common          Stocks (87.9%)             |
|                                            |
| Hotels          & Motels               |
| Orient-Express          Hotels Cl A        | 3,500 | $110,528 | $149,240 | Bermuda | 1.6% |
|                                            |
| Machinery          - Electrical            |
| Nidec                                      | 5,000 | 89,122 | 97,000 | Japan | 1.1% |
|                                            |
| Medical          - Drugs                   |
| American          Oriental Bioengineering* | 15,000 | 72,300 | 156,750 | China | 1.7% |
| GlaxoSmithKline          plc ADR           | 3,000 | 145,938 | 159,390 | United          Kingdom | 1.7% |
| Serono          SA ADR                     | 5,000 | 88,661 | 113,000 | Switzerland | 1.2% |
| Shire                                      | 2,000 | 92,860 | 121,200 | United          Kingdom | 1.3% |
|                                       |  |
|                                       | Subtotal | 477,042 | 643,796 |  | 6.9% |
|                                            |
| Metals          & Mining               |
| Anglo-American          plc ADR            | 7,500 | 138,371 | 175,425 | United          Kingdom | 1.9% |
| Potash          Corp. of Saskatchewan      | 1,000 | 34,234 | 140,740 | Canada | 1.5% |
| Rio          Tinto plc ADS                 | 750 | 74,825 | 160,942 | United          Kingdom | 1.7% |
| Tenaris          SA ADR                    | 2,500 | 95,290 | 117,525 | Luxembourg | 1.3% |
|                                       |  |
|                                       | Subtotal | 342,720 | 594,632 |  | 6.4% |
|                                            |
| Oil          & Gas Production          |
| EnCana                                     | 3,000 | 84,990 | 156,630 | Canada | 1.7% |
| Norsk          Hydro ADS                   | 6,000 | 122,808 | 149,460 | Norway | 1.6% |
| Petro-Canada                               | 2,000 | 95,990 | 90,400 | Canada | 1.0% |
| Repsol-YPF          ADR                    | 3,500 | 87,962 | 126,175 | Spain | 1.4% |
| Total          Fina Elf ADR                | 2,600 | 121,935 | 185,796 | France | 2.0% |
|                                       |  |
|                                       | Subtotal | 513,685 | 708,461 |  | 7.7% |
|                                            |
| Paper          Products                    |
| Metso          ADS                         | 2,100 | 22,802 | 97,272 | Finland | 1.1% |
| UPM-Kymmene          Oyj                   | 3,500 | 64,384 | 87,675 | Finland | 1.0% |
| Votorantim          Celulose ADS           | 8,000 | 102,000 | 159,200 | Brazil | 1.7% |
|                                       |  |
|                                       | Subtotal | 189,186 | 344,147 |  | 3.8% |
|                                            |
| Photographic          Equipment            |
| Canon          ADR                         | 3,300 | 95,606 | 173,679 | Japan | 1.9% |
|                                            |
| Publishing          - Books                |
| Pearson          plc ADS                   | 7,000 | 84,430 | 103,460 | United          Kingdom | 1.1% |
|                                            |
| Telecommunications                         |
| American          Movil ADS                | 6,000 | 29,725 | 266,820 | Mexico | 2.9% |
| Audiocodes*                                | 8,000 | 103,899 | 76,880 | Israel | 0.8% |
| BCE                                        | 5,490 | 135,460 | 134,999 | Canada | 1.5% |
| China          Mobil Ltd.                  | 5,500 | 119,327 | 232,100 | China | 2.5% |
|                                            |

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 21 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

|                                        |
|----------------------------------------|
| Issue                                  | Quantity | Tax        Cost | Market        Value | Country | Percentage |
| Common Stocks (87.9%)                  |
|                                        |
| Telecommunications        (continued)  |
| PT        Indosat ADR                  | 2,500 | $64,692 | $77,900 | Indonesia | 0.8% |
| SK        Telecom ADS                  | 5,000 | 100,161 | 129,650 | South	    Korea | 1.4% |
| Telcom        Corp. New Zealand ADS    | 2,500 | 76,174 | 62,050 | New	    Zealand | 0.7% |
| Telefonica        ADS                  | 2,200 | 85,949 | 134,134 | Spain | 1.4% |
| Telefonos        de Mexico ADS         | 5,000 | 107,470 | 130,500 | Mexico | 1.4% |
| Telus                                  | 2,000 | 63,219 | 96,080 | Canada | 1.0% |
|                                   |  |
|                                   | Subtotal | 886,346 | 1,341,113 |  | 14.4% |
|                                        |
| Transportation                         |
| Canadian        Pacific                | 3,200 | 109,246 | 178,304 | Canada | 1.9% |
| Linhas        Aereas Inel ADR          | 6,000 | 178,560 | 170,760 | Brazil | 1.8% |
| LAN        Airlines ADS                | 3,500 | 24,636 | 171,675 | Chile | 1.9% |
|                                   |  |
|                                   | Subtotal | 312,442 | 520,739 |  | 5.6% |
|                                        |
| Utilities        - Electric            |
| Enel        ADR                        | 1,300 | 58,877 | 66,313 | Italy | 0.7% |
| Enersis        ADR                     | 9,000 | 97,125 | 136,890 | Chile | 1.5% |
| Korea        Electric Power ADS        | 7,000 | 120,661 | 150,430 | South	    Korea | 1.6% |
|                                   |  |
|                                   | Subtotal | 276,663 | 353,633 |  | 3.8% |
|                                        |
| Utilities        - Gas                 |
| Transport        de Gas del Sur ADR*   | 1,500 | 18,807 | 8,775 | Argentina | 0.1% |
|                                        |
| Total        Investments               |  | $5,618,773 | $8,148,761 |  | 87.9% |
|                                        |
| Other      Assets (net of liabilities) |  |  | 1,117,736 |  | 12.1% |
|                                        |
| Total          Net Assets              |  |  | $9,266,497 |  | 100.0% |
|                                        |
| *Non-income producing                  | **Amount is less than 0.1% | ADS = American Depositary Share | ADR = American Depositary Receipt |

| Industry Allocation |
|---------------------|
|                     |

 
| Top Ten Holdings              |
|-------------------------------|
|                               |
| % of Fund Assets              |
| Busniess      Objects ADS     | 2.9% |
|                               |
| America      Movil ADS        | 2.9% |
|                               |
| China      Mobil Ltd.         | 2.5% |
|                               |
| Total      Fina Elf ADR       | 2.0% |
|                               |
| Banco      Bilbao Vizcaya ADS | 2.0% |
|                               |
| Canadian      Pacific         | 1.9% |
|                               |
| Anglo-American      plc ADS   | 1.9% |
|                               |
| Nomura      Holdings ADR      | 1.9% |
|                               |
| Canon      ADR                | 1.9% |
|                               |
| LAN      Airlines             | 1.9% |
|                               |

 

| 22 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

| Financial          Highlights                                                              | Year          Ended November 30,                                                                         |
|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| Selected          data per share of capital stock outstanding          throughout the year | 2006                                                                                                     | 2005 | 2004 | 2003 | 2002 |
|                                                                                            |
| Net          asset value at beginning of year                                              | $11.22                                                                                                   | $9.40 | $8.05 | $6.07 | $7.24 |
|                                                                                       | Income          from investment operations                                                               |
|                                                                                       | Net          investment income                                                                           | 0.11 | 0.05 | 0.03 | 0.05 | 0.02 |
|                                                                                       | Net          gains or losses on securities (both realized          and unrealized)                       | 2.34 | 1.83 | 1.35 | 1.97 | (1.16) |
|                                                                                            |
| Total          from investment operations                                                  | 2.45                                                                                                     | 1.88 | 1.38 | 2.02 | (1.14) |
|                                                                                            |
|                                                                                       | Less          distributions                                                                              |
|                                                                                       | Dividends          (from net investment income)                                                          | (0.11) | (0.06) | (0.03) | (0.04) | (0.03) |
|                                                                                            |
| Total          distributions                                                               | (0.11)                                                                                                   | (0.06) | (0.03) | (0.04) | (0.03) |
|                                                                                            |
|                                                                                            |
| Net        asset value at end of year                                                      | $13.56                                                                                                   | $11.22 | $9.40 | $8.05 | $6.07 |
|                                                                                            |
| Total        Return                                                                        | 21.85%                                                                                                   | 19.95% | 17.11% | 33.23% | (15.80)% |
|                                                                                            |
|                                                                                       | Ratios        / Supplemental Data                                                                        |
|                                                                                       | Net        assets ($000), at end of year                                                                 | $9,266 | $3,671 | $2,053 | $1,650 | $1,150 |
|                                                                                       | Ratio        of expenses to average net assets                                                           |
|                                                                                       | Before        fee waivers and custody fee credits                                                        | 1.09% | 1.36% | 1.22% | 1.29% | 1.36% |
|                                                                                       | After        fee waivers and custody fee credits                                                         | 1.02% | 1.25% | 1.10% | 1.10% | 1.17% |
|                                                                                       | Ratio        of net investment income after fee waivers        and custody credits to average net assets | 0.94% | 0.52% | 0.31% | 0.75% | 0.20% |
|                                                                                            |
| Portfolio        turnover rate                                                             | 9%                                                                                                       | 5% | 7% | 4% | 4% |
|                                                                                            |
| 1        Redemption penalty adopted March 29, 2005                                         | *Amount        is less than $0.01                                                                        |

 
| Statement          of Assets and Liabilities                               | As          of November 30, 2006                                                   |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                            |
| Assets                                                                     |
|                                                                       | Investments          (Cost $5,618,773)                                             | $8,148,761 |   |
|                                                                       | Cash                                                                               | 1,205,628 |   |
|                                                                       | Dividends          receivable                                                      | 11,966 |   |
|                                                                       | Receivable          for Fund shares sold                                           | 1,047 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          Assets                                                              |   | $9,367,402 |
|                                                                            |
| Liabilities                                                                |
|                                                                       | Payable          for Fund shares redeemed                                          | 86,333 |   |
|                                                                       | Accrued          expenses                                                          | 9,037 |   |
|                                                                       | Due          to affiliates                                                         | 4,543 |   |
|                                                                       | Distribution          payable                                                      | 992 |   |
|                                                                            |                                                                                    |
|                                                                       | Total          liabilities                                                         |   | 100,905 |
|                                                                            |
| Net          Assets                                                        | $9,266,497                                                                         |
|                                                                            |
| Fund          shares outstanding                                           | 683,378                                                                            |
|                                                                            |
| Analysis          of Net Assets                                            |
|                                                                       | Paid-in          capital (unlimited shares authorized, without          par value) | $6,767,423 |   |
|                                                                       | Undistributed          net investment income                                       | 139 |   |
|                                                                       | Accumulated          net realizzed loss                                            | (31,053) |   |
|                                                                       | Unrealized          net appreciation on investments                                | 2,529,988 |   |
|                                                                            |                                                                                    |
|                                                                       | Net          Assets applicable to Fund shares outstanding                          |   | $9,266,497 |
|                                                                            |
| Net          Asset Value, Offering and Redemption price          per share | $13.56                                                                             |
|                                                                            |

 

| (The            accompanying notes are an integral part            of these financial statements.) | November            30, 2006 Annual Report |   | 23 |
|----------------------------------------------------------------------------------------------------|--------------------------------------------|--------|----|

 

| Statement            of Changes in Net Assets           | Year            ended            Nov. 30, 2006                  | Year            ended            Nov. 30, 2005 |
|---------------------------------------------------------|-----------------------------------------------------------------|------------------------------------------------|
|                                                         |
| Increase            in Net Assets                       |
| From            operations                              |
|                                                    | Net            investment income                                | $76,757                                        | $14,949 |
|                                                    | Net            realized gain on investments                     | 122,914                                        | 21,377 |
|                                                    | Net            increase  in unrealized appreciation             | 1,341,965                                      | 495,498 |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets from operations           | 1,541,636                                      | 531,824 |
|                                                         |                                                                 |
| Dividends            to shareowners from                |
|                                                         |                                                                 |
|                                                    | Net            investment income                                | (76,618)                                       | (17,930) |
|                                                         |                                                                 |
| From            Fund share transactions                 |
|                                                    | Proceeds            from sales of shares                        | 4,867,747                                      | 1,203,188 |
|                                                    | Value            of shares issued in reinvestment of dividends  | 75,626                                         | 17,356 |
|                                                         |                                                                 |
|                                                    | 4,943,373                                                       | 1,220,544                                      |
|                                                         |                                                                 |
|                                                    | Early            redemption penalties retained                  | 80                                             | 45 |
|                                                    | Cost            of shares redeemed                              | (813,073)                                      | (115,946) |
|                                                         |                                                                 |
|                                                    | Net            increase in net assets                           | 4,130,380                                      | 1,104,643 |
|                                                         |
| Total            increase in net assets                 | $5,595,398                                                      | $1,618,537                                     |
|                                                         |
| Net            Assets                                   |
|                                                    | Beginning            of year                                    | 3,671,099                                      | 2,052,562 |
|                                                    | End            of year                                          | $9,266,497                                     | $3,671,099 |
|                                                         |                                                                 |
|                                                    | Undistributed            net investment income                  | 139                                            | - |
|                                                         |
| Shares            of the Fund sold and redeemed         |
|                                                    | Number            of shares sold                                | 415,042                                        | 118,463 |
|                                                    | Number            of shares issued in reinvestment of dividends | 5,577                                          | 1,547 |
|                                                         |                                                                 |
|                                                    | 420,619                                                         | 120,010                                        |
|                                                         |                                                                 |
|                                                    | Number            of shares redeemed                            | (64,517)                                       | (10,994) |
|                                                         |
| Net            increase in number of shares outstanding | 356,102                                                         | 109,016                                        |
|                                                         |

| Statement            of Operations                              | For            the year ended          November 30, 2006                      |
|-----------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                 |
| Investment            income                                    |
|                                                            | Dividend            income (net of foreign tax of $20,229)                    | $160,467 |   |
|                                                                 |                                                                               |
|                                                            | Gross            investment income                                            |   | $160,467 |
|                                                                 |
| Expenses                                                        |
|                                                            | Investment            adviser and administration fees                         | 38,436 |   |
|                                                            | Filing            and registrations fees                                      | 19,568 |   |
|                                                            | Audit            fees                                                         | 9,434 |   |
|                                                            | Custodian            fees                                                     | 5,258 |   |
|                                                            | Chief            compliance officer expenses                                  | 3,749 |   |
|                                                            | Distribution            fees                                                  | 3,742 |   |
|                                                            | Printing            and postage                                               | 2,930 |   |
|                                                            | Insurance                                                                     | 2,830 |   |
|                                                            | Trustee            fees                                                       | 1,602 |   |
|                                                            | Legal            fees                                                         | 1,482 |   |
|                                                            | Other            expenses                                                     | 301 |   |
|                                                                 |                                                                               |  |
|                                                            | Total            gross expenses                                               | 89,332 |   |
|                                                                 |                                                                               |  |
|                                                            | Less            custodian fees waived                                         | (5,622) |   |
|                                                                 |                                                                               |
|                                                            | Net            expenses                                                       |   | 83,710 |
|                                                                 |                                                                               |
|                                                            | Net            investment income                                              |   | 76,757 |
|                                                                 |
| Net            realized loss on investments                     |
|                                                            | Proceeds            from sales                                                | 620,135 |   |
|                                                            | Less            cost of securities sold (based on identified            cost) | 497,221 |   |
|                                                                 |                                                                               |
|                                                            | Realized            net gain                                                  |   | 122,914 |
|                                                                 |
| Unrealized            gain on investments                       |
|                                                            | End            of year                                                        | 2,529,988 |   |
|                                                            | Beginning            of year                                                  | 1,188,023 |   |
|                                                            | Increase            in unrealized gain for the year                           |   | 1,341,965 |
|                                                                 |                                                                               |
|                                                            | Net            realized and unrealized gain                                   |   | 1,464,879 |
|                                                                 |
| Net            increase in net assets resulting from operations | $1,541,636                                                                    |
|                                                                 |

 

 

| 24 |   | November            30, 2006 Annual Report | (The            accompanying notes are an integral part            of these financial statements.) |
|----|--------|--------------------------------------------|----------------------------------------------------------------------------------------------------|

|                             |
|-----------------------------|
| Countries                   |
| United        Kingdom       | 12.0% |
|                             |
| Canada                      | 11.5% |
|                             |
| France                      | 9.6% |
|                             |
| Japan                       | 8.0% |
|                             |
| Mexico                      | 6.8% |
|                             |
| Brazil                      | 5.8% |
|                             |
| Spain                       | 5.4% |
|                             |
| China                       | 4.8% |
|                             |
| Chile                       | 3.8% |
|                             |
| Germany                     | 3.3% |
|                             |
| Netherlands                 | 3.3% |
|                             |
| Switzerland                 | 2.5% |
|                             |
| Finland                     | 2.3% |
|                             |
| Japan                       | 2.1% |
|                             |
| Miscellaneous        <2% | 18.8% |
|                             |

Our portfolio is most heavily invested in the      UK and Canada, which have economies that benefit      from higher energy prices and solid currencies      and governments. After several years of strong      growth, commodity prices are now falling worldwide,      impacting our cyclical and resource-based issues.      We held more cash during the year than normal,      as new shareowners increased and caution guarded      our investing. The tables on page 22 show the      industry allocation and our largest holdings.      Telecommunications (largest holdings America      Movil up 59% and China Mobil up 77%) and banking      (largest holding Banco Bilbao Vizcaya up 42%)      did well. Banks did reasonably, considering higher      interest rates. Oil and gas producers appreciated,    in response to the rise in energy prices.

|                                                                                           |
|-------------------------------------------------------------------------------------------|
| Sextant            International Fund vs. AMEX International            Index (unaudited) |
|                                                                                           |
|                                                                                           |

 

 

 

 

 

 

 

| November            30, 2006 Annual Report |   | 25 |
|--------------------------------------------|--------|----|

|                                               |
|-----------------------------------------------|
|                                          | Beginning        Account Value      (June 1, 2006) | Ending        Account Value      (November 30, 2006) | Expenses        Paid      During Period* | Annualized      Expense Ratio |
| Short-Term        Bond Fund                   |
| Actual                                        | $1,000 | $1,035.00 | $2.04 | 0.40% |
|                                               |
| Hypothetical      (5% return before expenses) | $1,000 | $1,023.06 | $2.03 | 0.40% |
|                                               |
| Bond        Income Fund                       |
| Actual                                        | $1,000 | $1,055.40 | $4.64 | 0.90% |
|                                               |
| Hypothetical      (5% return before expenses) | $1,000 | $1,020.56 | $4.56 | 0.90% |
|                                               |
| Growth        Fund                            |
| Actual                                        | $1,000 | $1,087.90 | $7.33 | 1.40% |
|                                               |
| Hypothetical      (5% return before expenses) | $1,000 | $1,018.05 | $7.08 | 1.40% |
|                                               |
| International        Fund                     |
| Actual                                        | $1,000 | $1,124.30 | $5.96 | 1.12% |
|                                               |
| Hypothetical      (5% return before expenses) | $1,000 | $1,019.45 | $5.67 | 1.12% |
|                                               |

| 26 |   | November            30, 2006 Annual Report |
|----|--------|--------------------------------------------|

      -     For      each month in which either of these Funds' total      investment return (change in net asset value plus all      distributions reinvested) for the one year period through that      month outperforms or underperforms the total return of a      specified index for that period by 1% or more but less than      2%, the Base Fee is increased or decreased by the annual      rate of .10% of the Fund's average daily net assets for the    preceding year.  
      - If the outperformance or underperformance is 2% or more, then      the adjustment is at the annual rate of .20%.  

      -    For each month in which either of these Funds' totalinvestment return (change in net asset value plus alldistributions reinvested) for the one year period through thatmonth outperforms or underperforms the total return of aspecified index for that period by 1% or more but less than2%, the Base Fee is increased or decreased by the annual  

| November            30, 2006 Annual Report |   | 27 |
|--------------------------------------------|--------|----|

      - rate of .10% of the Fund's average daily net assets for thepreceding year.
      - If the outperformance or underperformance is 2% or morebut less than 4%, then the adjustment is at the annual rate of..20%.
      - If the outperformance or underperformance is 4% or more,the adjustment is at an annual rate of .30%.

|                      |
|----------------------|
|                 | 2006 | 2005 |
| Short-Term Bond Fund |
| Ordinary income      | $85,431 | $83,151 |
|                      |
| Bond    Income Fund  |
| Ordinary income      | $142,386 | $126,361 |
|                      |
| Growth    Fund       |
| Ordinary income      | - | $2,289 |
| Capital    gains *1* | $125,371 | $12,474 |
|                      |
| Short-Term Bond Fund |
| Ordinary income      | $76,618 | $17,930 |
|                      |
|                                                |
|------------------------------------------------|
|                                           | Short-Term    Bond | Bond    Income |
| Cost    of investments                         | $2,848,892 | $3,180,425 |
| Gross    tax unrealized appreciation           | 10,985 | 106,740 |
| Groos    tax unrealized depreciation           | (20,739) | (10,724) |
|                                                |
| Net tax unrealized appreciation (depreciation) | (9,754) | 96,016 |
| Undistributed    ordinary income               | 1,660 | - |
| Undistributed    long-term capital gain (loss) | (50,617) | (36,499) |
| Total    distributable earnings                | (48,957) | (36,499) |
| Total    accumulates earnings (losses)         | $(58,711) | $59,517 |
|                                                |
|                                                       |
|-------------------------------------------------------|
|                                                  | Growth | International |
| Cost        of investments                            | $8,556,945 | $5,618,773 |
| Gross        tax unrealized appreciation              | 4,966,590 | 2,670,194 |
| Groos        tax unrealized depreciation              | (293,691) | (140,206) |
|                                                       |
| Net        tax unrealized appreciation (depreciation) | 4,672,899 | 2,529,988 |
| Undistributed        ordinary income                  | - | 139 |
| Undistributed        long-term capital gain (loss)    | 40 | (31,053) |
| Total        distributable earnings                   | - | (30,914) |
| Total        accumulates earnings (losses)            | $4,672,939 | $2,499,074 |
|                                                       |

 

| 28 |   | November            30, 2006 Annual Report |
|----|--------|--------------------------------------------|

 

 

 

 

 

 

 

 

 

 

| November          30, 2006 Annual Report |   | 29 |
|------------------------------------------|--------|----|

**†Source: Morningstar™ 11/30/06.**

**Proposal    1: Election of Trustees.**
|                               |
|-------------------------------|
| Nominee                       | For | Withhold |
| Gary            A. Goldfogel* | 3,077,769 | 22,368 |
|                               |
| Herbert            A. Grubel  | 3,080,461 | 19,677 |
|                               |
| Nicholas            Kaiser*   | 3,093,301 | 6,836 |
|                               |
| John            E. Love*      | 3,080,126 | 20,011 |
|                               |
| John            S. Moore*     | 3,079,774 | 20,363 |
|                               |

**Proposal 2: Adoption of 12b-1 Distribution Plan.**
|                                            |
|--------------------------------------------|
|                                            | For | Against |
| Sextant        Short-Term Bond Fund† | 410,150 | 22,672 |
|                                            |
| Sextant        Bond Income Fund†     | 472,268 | 43,103 |
|                                            |
| Sextant        Growth Fund†          | 575,437 | 29,465 |
|                                            |
| Sextant        International Fund†   | 596,118 | 16,164 |
|                                            |

 

 

 

 

 

        - A description of the policies and procedures that the Funds use todetermine how to vote proxies relating to portfolio securities isavailable (a) without charge, upon request, by calling Saturna Capitalat 1-800 728-8762 (b) on the Funds' website at http://www.saturna.com; and (c) on the SEC's website at http://www.sec.gov.
        - Information regarding how each Fund voted proxies relating toportfolio securities during the most recent 12-month period endedJune 30 is available (a) without charge, upon request, by callingSaturna Capital at 1-800 728-8752; (b) on the Funds' website athttp://www.saturna.com; and (c) on the SEC's website at http://www.sec.gov.

        - The Sextant Funds file complete schedules of portfolio holdings withthe SEC for the first and third quarters of each fiscal year on FormN-Q.
        - The Funds' Forms N-Q are available on the SEC's website at http://www.sec.gov., and at www.saturna.com.
        - The Funds' Forms N-Q may be reviewed and copied at the SEC'sPublic Reference Room in Washington, DC. Information on theoperation of the Public Reference Room may be obtained by calling1-800-SEC-0330.
        - The Funds make a complete schedule of portfolio holdings after theend of each month available to investors at http://www.saturna.com.

| 30 |   | November            30, 2006 Annual Report |
|----|--------|--------------------------------------------|

|                                                                                                 |
|-------------------------------------------------------------------------------------------------|
| Trustees and Officers (unaudited)                                                               |
| Name (age)Address                                                                               | Position(s) held with Trust and Length of Time Served | Principal Occupation(s) during past 5 Years | Number of Portfolios in Saturna Fund Comples overseen by Trustee | Other Directorships held by Trustee |
|                                                                                                 |
| Independent Trustees                                                                            |
| Gary    A. Goldfogel, MD (48)  1500 N. State Street  Bellingham, WA 98225                       | Independent    Trustee  (since 1995) | Medical    Examiner (pathologist);  Owner, Avocet Environmental  Testing (laboratory) | Five | None |
|                                                                                                 |
| Herbert    G. Grubel (72)  Apt. 1202 - 125 West Second St.  North Vancouver, BC  Canada V7M 1C5 | Independent    Trustee  (since 2005) | Senior    Fellow, Fraser Institute;  Professor (Emeritus) of Economics,  Simon Fraser University; Author | Five | None |
|                                                                                                 |
| John    E. Love (74)  1002 Spokane Street  Garfield, WA 99130                                   | Chairman;  Independent Trustee  (since 1987) | Owner,    J.E. Love Co.  (agricultural equipment  manufacturer) | Five | None |
|                                                                                                 |
| John    S. Moore (75)  346 Bayside Road  Bellingham, WA 98225                                   | Independent    Trustee  (since 1993) | Professor    (now retired), College of  Business and Economics, Western  Washington University | Five | None |
|                                                                                                 |
| Interested Trustee                                                                              |
| Nicholas    F. Kaiser, CFA (60)  1300 N. State Street  Bellingham, WA 98225                     | President;    Trustee†  (since 1989) | President,    Saturna Capital  Corporation; President, Saturna  Brokerage Services | Seven | Amana    Mutual Funds Trust |
|                                                                                                 |
| Officers Who Are Not Trustees                                                                   |
| Phelps    S. McIlvaine (53)  1300 N. State Street  Bellingham, WA 98225                         | Vice    President†  (since 1994) | Vice    President, Saturna Capital  Corporation; Treasurer, Saturna  Brokerage Services | N/A | N/A |
|                                                                                                 |
| Christopher    Fankhauser (34)  1300 N. State Street  Bellingham, WA 98225                      | Treasurer†  (since 2002) | Manager    of Operations, Saturna  Capital Corporation | N/A | N/A |
|                                                                                                 |
| Ethel    B. Bartolome (34)  1300 N. State Street  Bellingham, WA 98225                          | Secretary†  (since 2001) | Corporate    Administrator, Saturna  Capital Corporation | N/A | N/A |
|                                                                                                 |
| James    D. Winship, (58)  54056 Diamond Place NE  Bainbridge Island, WA 98110                  | Chief    Compliance  Officer†  (since 2004) | Attorney;    Adjunct Professor,  University of Washington and Seattle  Pacific University (1999 - 2003) | N/A | N/A |
|                                                                                                 |

 

| November          30, 2006 Annual Report |   | 31 |
|------------------------------------------|--------|----|

 
|  | 1300 North State StreetBellingham, WA 98225www.saturna.comsextant@saturna.com(800) SATURNA | This report is issued for the information of the shareowners ofthe Funds. It is not authorized for distribution to prospectiveinvestors unless it is accompanied or preceded by an effectiveprospectus relating to the securities of the Funds. The SextantFunds are a series of Saturna Investment Trust.Saturna Brokerage Services, Distributor |
|--|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Nicholas Kaiser,President | Phelps McIlvaine,Vice	      President, Portfolio Manager |
|---------------------------|----------------------------------------------------------|

 

 

 

 
| Average Annual Returns (as of 12/31/2006) |
|-------------------------------------------|
| 1    Year                                 | 3    Years | 5    Years | 10    Years |
|                                           |
| 3.87%                                     | 2.64% | 4.16% | 4.48% |
|                                           |

 
|   |
|---|
| 2 |   | Idaho    Tax-Exempt Fund Annual Report November 30, 2006 |
|          |
|----------|
| Rating*  | Issue | Coupon/Maturity | Face    Amount | Market    Value | Percentage |
|          |
| Building |