Idaho Tax-Exempt FundMay 31, 2001 Report

Fellow Shareowners:

For the twelve-month period ending May 31, 2001, the Idaho Tax Exempt Fund
  provided a total return of +10.69%. Fund assets rose to $6.2 million from $5.3

  million one year ago.
  Over the past eight months, the New Era economy finally succumbed to the
restrictive
  Federal Reserve policies of early 2000. Falling consumer confidence, capital
  spending reductions, weaker productivity and buldging inventories convinced
  the Federal Reserve Bank to abruptly reverse their policy stance and lower the

  Federal Funds target in an effort to avoid a recession. A large downard move
  in interest rates pushed the price of Idaho municipal bonds higher. 
  Looking ahead, stimulative rate cuts by the Federal Reserve Bank and the Bush
  Administrations income tax cut should re-energize the US economy. The
  Federal Reserve will have to keep a close eye on the Consumer and Producer
Price
  Indexes which have been rising steadily since early 1999. In response to these

  concerns, the yield curve has steepened substantially and long term rates have

  risen from their cyclical lows. Our sense is that the bond market has
discounted
  these threats already and offers adequate compensation for investing in longer

  maturities. We expect short term interest rates are near a cyclical low and
  long term rates are comfortably in the middle of our forecast range. 
  The Idaho economy has softened in sympathy with the national economy. But even

  after this slowdown, Idaho should grow faster than the national economy for
  the forseeable future. Idahos pro-business policies, natural resources
  and high standard of living give the State a competitve edge in the
marketplace.
  The credit quality of Idaho municipal issuers continues to improve as the
States
  economy grows and diversifies.
  One year ago, we recommended that it was a good time to reposition
financial
  assets from the high-priced stock markets to a core investment holding in tax
  exempt bonds. Our opinion has not changed. We continue to believe in the

  added benefits of a balanced and diversified investment portfolio for the year

  ahead. We expect another year of positive real returns for the Idaho
Tax-Exempt
  Fund.
  We invite you to again review the advantages of the Idaho Tax-Exempt Fund,
including
  low expenses, income free from Idaho and federal income taxes, a high-quality
  diversified bond portfolio and daily supervision by professional managers. We
  welcome your comments and suggestions. Only with your help can we be certain
  that we are meeting your investment needs  our primary objective.





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

June 28, 2001

|Performance data quoted in this report
represents
      past                                                                |  | Average Annual Returns (as of 6/30/2001), per
regulatory
        requirements
|--------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------
|performance and is no guarantee of future
performance.
      The investment return and principal value of investments       |  | 1 Year                                                                       
|in the Fund fluctuate daily, and an investor's
      shares when redeemed may be worth more or less than the original
cost. |  | 8.84%                                                                        



---

|Investments |  | 
|----------- |  | 

|Rating*                     | Issuer                                     | Coupon/Maturity     | Face Amount | Market Value
|--------------------------- | ------------------------------------------ | ------------------- | ----------- | ------------
|                            |                                            |                     |             |             
|Airport Parking (3.6%)      |                                            |                     |             |             
|AAA                         | Boise City Airport Revenue COP             | 5.40% due 8/1/2011  | $215,000    | $223.966    
|Electric Power (2.8%)       |                                            |                     |             |             
|AAA                         | Idaho Falls Electric Revenue               | 6.75% due 4/1/2019  | 160,000     | 174,483     
|General Obligations (43.6%) |                                            |                     |             |             
|AA-                         | Ada & Canyon Counties                      | 5.50% due 7/30/2011 | 175,000     | 188,195     
|                            | JSD #2 Meridian                            | 5.50% due 7/30/2015 | 100,000     | 106,440     
|AAA                         | JSD #3 Kuna                                | 4.65% due 7/30/2015 | 100,000     | 96,750      
|                            | "                                          | 4.80% due 7/30/2017 | 175,000     | 168,700     
|AAA                         | Adams County GO                            | 5.00% due 8/1/2014  | 110,000     | 110,704     
|A+                          | Bannock County GO Jail                     | 5.05% due 9/1/2012  | 95,000      | 96,055      
|A                           | Bannock County SD #25                      | 4.90% due 8/1/2009  | 90,000      | 92,016      
|                            | "                                          | 5.25% due 8/1/2016  | 110,000     | 111,265     
|AAA                         | Bingham County SCD #55                     | 5.00% due 8/1/2009  | 200,000     | 210,080     
|AA-                         | Boise City Revenue Bonds                   | 5.10% due 2/1/2011  | 110,000     | 112,464     
|AAA                         | Boise City GO ISD                          | 5.50% due 7/30/2011 | 95,000      | 97,879      
|AA-                         | "                                          | 5.50% due 7/30/2016 | 150,000     | 155,955     
|A                           | Boise County SD #73                        | 5.15% due 7/31/2010 | 125,000     | 127,187     
|AAA                         | Caldwell, Idaho GO                         | 5.30% due 5/15/2014 | 150,000     | 155,192     
|AAA                         | Canyon County ID SD #132                   | 5.40% due 7/30/2011 | 195,000     | 203,346     
|                            | "                                          | 5.40% due 7/30/2012 | 100,000     | 103,640     
|A                           | Canyon County ID SD #135 Notus Series 1994 | 6.00% due 8/1/2007  | 50,000      | 49,978      
|AAA                         | Cassia, Twin Falls JSD #151                | 5.10% due 8/1/2009  | 90,000      | 93,753      
|                            | "                                          | 5.375% due 8/1/2013 | 85,000      | 88,281      
|                            | "                                          | 5.375% due 8/1/2015 | 75,000      | 76,650      
|AAA                         | Kootenai County SD #273                    | 5.00% due 7/30/2016 | 70,000      | 69,178      
|AAA                         | Kuna Sch/Comm Library Dist.                | 4.9% due 8/1/2013   | 75,000      | 74,872      
|AAA                         | Power & Cassia Co.s JSD #381               | 5.25% due 8/01/2012 | 60,000      | 62,215      
|AAA                         | Teton County SD #401 GO                    | 5.50% due 8/1/2012  | 75,000      | 77,962      
|                            | SUB-TOTAL                                  |                     | 2,660,000   | 2,728,757   
|Housing (5.1%)              |                                            |                     |             |             
|AA                          | Idaho Housing Authority                    |                     |             |             
|                            | Single Fam Mortgage, B-1                   | 6.85% due 7/1/2012  | 80,000      | 83,252      
|AA                          | Idaho Housing Authority                    |                     |             |             
|                            | Refunding Series A                         | 6.15% due 7/1/2024  | 145,000     | 151,756     
|AA+                         | Idaho Housing Authority                    |                     |             |             
|                            | Single Fam Mort Mezz-E-1                   | 6.60% due 7/1/2011  | 60,000      | 62,588      
|AA                          | Idaho Housing Authority                    |                     |             |             
|                            | Single Fam Mort Rev Ser B1                 | 8.00% due 1/1/2020  | 10,000      | 10,370      
|AA                          | Idaho Housing Authority                    |                     |             |             
|                            | Single Fam Mort SR Series C1               | 7.70% due 7/1/2017  | 15,000      | 15,061      
|                            | SUB-TOTAL                                  |                     | 310,000     | 323,027     
|Medical/Hospitals (4.4%)    |                                            |                     |             |             
|                            | Idaho Health Facility Auth.                |                     |             |             
|AAA                         | Holy Cross                                 | 5.25% due 12/1/2014 | 80,000      | 80,936      
|                            | Idaho Health Facility Auth. Corp.          |                     |             |             
|AAA                         | Holy Cross Sys Corp Rev                    | 5.00% due 12/1/2022 | 115,000     | 110,676     
|                            | Idaho Health Facility                      |                     |             |             
|AAA                         | Holy Cross Rev Refunding                   | 5.25% due 12/1/2011 | 65,000      | 67,233      
|                            | SUB-TOTAL                                  |                     | 260,000     | 258,845     



|2 | May 31, 2001 Semi-Annual
Report
|- | -------------------------------

---

| |  | Investments
| |  | -----------

|Rating*                                                                                                                                            | Issuer                                | Coupon/Maturity      | Face Amount | Market Value
|-------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | -------------------- | ----------- | ------------
|Real Estate (6.4%)                                                                                                                                 |                                       |                      |             |             
|AAA                                                                                                                                                | Idaho State Bldg Authority Series C   | 5.70% due 9/1/2007   | 100,000     | 103,640     
|AAA                                                                                                                                                | Idaho State Building Authority        | 5.00% due 9/1/2021   | 100,000     | 96,910      
|A                                                                                                                                                  | Jerome Urban Renewal District         | 5.40% due 9/1/2013   | 200,000     | 199,788     
|                                                                                                                                                   |                                       |                      | 400,000     | 400,338     
|Roads (2.4%)                                                                                                                                       |                                       |                      |             |             
|A                                                                                                                                                  | Payette L.I.D. #89-1                  | 7.60% due 5/1/2005   | 30,000      | 30,116      
|A                                                                                                                                                  | Post Falls, Kootenai County           | 7.60% due 4/15/2002  | 20,000      | 19,998      
|                                                                                                                                                   | L.I.D. #91-1                          | 7.95% due 4/15/2003  | 20,000      | 19,981      
|                                                                                                                                                   | "                                     | 7.95% due 4/15/2004  | 20,000      | 20,056      
|                                                                                                                                                   | L.I.D. #91-4                          | 7.95% due 4/15/2005  | 20,000      | 19,986      
|                                                                                                                                                   | "                                     | 7.95% due 4/15/2006  | 20,000      | 19,984      
|                                                                                                                                                   | "                                     | 7.95% due 4/15/2007  | 20,000      | 20,016      
|                                                                                                                                                   | SUB-TOTAL                             |                      | 150,000     | 150,137     
|                                                                                                                                                   |                                       |                      |             |             
|State Education (12.2%)                                                                                                                            |                                       |                      |             |             
|                                                                                                                                                   | Boise State University                |                      |             |             
|AAA                                                                                                                                                | Student Univ. & Housing Sys.          | 5.10% due 4/1/2014   | 300,000     | 304,560     
|                                                                                                                                                   | Idaho State University                |                      |             |             
|AAA                                                                                                                                                | Student Fee Revenue                   | 4.90% due 4/1/2017   | 150,000     | 145.395     
|                                                                                                                                                   | University of Idaho                   |                      |             |             
|AAA                                                                                                                                                | Student Fee Revenue-Elmwood Apts.     | 5.25% due 4/1/2014   | 120,000     | 123,108     
|                                                                                                                                                   | University of Idaho                   |                      |             |             
|AAA                                                                                                                                                | Student Fee Revenue                   | 5.60% due 4/1/2015   | 185,000     | 193,158     
|                                                                                                                                                   | SUB-TOTAL                             |                      | 755,000     | 766,221     
|Sewer (2.1%)                                                                                                                                       |                                       |                      |             |             
|A                                                                                                                                                  | Troy ID, Sewer Revenue                | 7.40% due 2/1/2002   | 10,000      | 9,966       
|                                                                                                                                                   | "                                     | 7.50% due 2/1/2003   | 10,000      | 10,016      
|                                                                                                                                                   | "                                     | 7.60% due 2/1/2004   | 10,000      | 10,039      
|                                                                                                                                                   | "                                     | 7.70% due 2/1/2005   | 15,000      | 15,089      
|                                                                                                                                                   | "                                     | 7.80% due 2/1/2006   | 15,000      | 15,113      
|                                                                                                                                                   | "                                     | 7.90% due 2/1/2007   | 15,000      | 15,128      
|                                                                                                                                                   | "                                     | 8.00% due 2/1/2008   | 15,000      | 15,133      
|                                                                                                                                                   | "                                     | 8.00% due 2/1/2009   | 20,000      | 20,193      
|                                                                                                                                                   | "                                     | 8.00% due 2/1/2010   | 20,000      | 20,199      
|                                                                                                                                                   | SUB-TOTAL                             |                      | 130,000     | 130,876     
|Urban Renewal (5.6%)                                                                                                                               |                                       |                      |             |             
|AAA                                                                                                                                                | Boise City Idaho Urban Renewal        | 5.875% due 8/15/2025 | 190,000     | 198,588     
|AA                                                                                                                                                 | Pocatello Idaho Development Authority | 5.15% due 3/1/2011   | 150,000     | 153,951     
|                                                                                                                                                   | SUB-TOTAL                             |                      | 340,000     | 352,539     
|Water Supply (7.7%)                                                                                                                                |                                       |                      |             |             
|AAA                                                                                                                                                | Ketchum Water Revenue                 | 4.75% due 9/1/2013   | 60,000      | 59,715      
|A                                                                                                                                                  | McCall Water Rev., Series 1994        | 6.25% due 9/1/2008   | 200,000     | 212,552     
|A                                                                                                                                                  | McCall Water Revenue                  | 6.375% due 9/1/2014  | 70,000      | 73,666      
|A                                                                                                                                                  | Ucon Water & Sewer Rev. Refunding     | 7.75% due 12/1/2002  | 35,000      | 35,288      
|                                                                                                                                                   | SUB-TOTAL                             |                      | 365,000     | 381,221     
|Total Investments (94.3%)                                                                                                                          |                                       | (Cost=$5,797,747)    | $5,745,000  | 5,890,410   
|Other Assets (net of liabilities) (5.7%)                                                                                                           |                                       |                      |             | 359,111     
|Total Net Assets (100%)                                                                                                                            |                                       |                      |             | $6,249,521  
|* These unaudited bond ratings reflect the adviser's
current
      rating of each bond, as determined using Standard & Poor's and Moody's
ratings. |                                       |                     



|May 31, 2001 Semi-Annual
Report | 3
|------------------------------- | -

---

|Financial
        Highlights |  | 
|---------------------------- |  | 

|                                                                                                                                                                                                                                                                               |                                                                  | Year ended November 30, |        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------- | ----------------------- | -------
|Selected data per share of capital stock outstanding
        throughout the year:                                                                                                                                                                                              | Period endedMay 31, 2001                                         | 2000                    | 1999   
|Net asset value at beginning of period                                                                                                                                                                                                                                         |                                                                  |                         |        
|                                                                                                                                                                                                                                                                               | Income from investment operations                                | $5.13                   | $5.01  
|                                                                                                                                                                                                                                                                               | Net investment income                                            | 0.11                    | 0.23   
|                                                                                                                                                                                                                                                                               | Net gains or losses on securities (both realized and
unrealized) | 0.09                    | 0.12   
|Total From investment operations                                                                                                                                                                                                                                               | 0.20                                                             | 0.35                    | (0.11) 
|                                                                                                                                                                                                                                                                               | Less Distributions                                               |                         |        
|                                                                                                                                                                                                                                                                               | Dividends (from net investment income)                           | (0.11)                  | (0.23) 
|                                                                                                                                                                                                                                                                               | Distributions (from capital gains)                               | 0.00                    | 0.00   
|Total Distributions                                                                                                                                                                                                                                                            | (0.11)                                                           | (0.23)                  | (0.24) 
|Net asset value at end of period                                                                                                                                                                                                                                               | $5.22                                                            | $5.13                   | $5.01  
|Total Return                                                                                                                                                                                                                                                                   | 3.98%                                                            | 7.28%                   | (2.18)%
|                                                                                                                                                                                                                                                                               |                                                                  |                         |        
|Ratios/Supplemental data                                                                                                                                                                                                                                                       |                                                                  |                         |        
|Net assets ($000), end of period                                                                                                                                                                                                                                               | $6,250                                                           | $5,628                  | $6,151 
|Ratio of gross expenses to average net assets                                                                                                                                                                                                                                 | 0.40%                                                            | 0.80%                   | 0.80%  
|Ratio of net investment income to average net assets                                                                                                                                                                                                                          | 2.15%                                                            | 4.69%                   | 4.55%  
|Portfolio turnover rate                                                                                                                                                                                                                                                        | 12%                                                              | 14%                     | 13%    
|*For each of the above periods, all or a portion of the expenses were
        waived. If these costs had not been waived, the resulting increase to
        the ratio of expenses to average net assets would be .07%, .14%, .05%,
        .07%, .16%, and .27%, respectively.



|Statement
        of Assets and Liabilities |  | 
|------------------------------------------- |  | 

As of May 31, 2001AssetsBond Investments (Cost $5,797,747)
      $5,890,410Cash
      272,450Interest Receivable
      88,042Insurance Reserve Premium
      2,473Total Assets
      
      $6,253,375LiabilitiesOther Liabilities
      3.854Total Liabilities
      
      3,854Net Assets
      
      
      $6,249,521Fund Shares Outstanding
      
      
      1,198,365Analysis of Net AssetsPaid in Capital (unlimited shares authorized, without par
        value)
      6,195,149Accumulated net realized gain (loss) on investments
      (38,291)Unrealized net appreciation on investments
      92,663Net Assets applicable to Fund shares outstanding
      
      $6,249,521Net Asset Value, Offering and Redemption price per
share
      
      
      $5.22


(The accompanying notes are an integral
part
  of these financial statements)

|4 | May 31, 2001 Semi-Annual
Report
|- | -------------------------------



| |  | Statement
        of Operations
| |  | -------------------------------

|For the period ended May 31, 2001                    |                                                          |                                                 |         
|---------------------------------------------------- | -------------------------------------------------------- | ----------------------------------------------- | --------
|                                                     |                                                          |                                                 |         
|Investment Income                                    |                                                          |                                                 |         
|                                                     | Interest income                                          | $153,313                                        |         
|                                                     | Amortization of bond premium                             | (4,182)                                         |         
|                                                     | Accretion                                                | 426                                             |         
|                                                     |                                                          | Gross Investment Income                         |         
|                                                     |                                                          |                                                 |         
|Expenses                                             |                                                          |                                                 |         
|                                                     | Investment Advisor and administration fee                | 14,529                                          |         
|                                                     | Professional fees                                        | 4,815                                           |         
|                                                     | Shareholder service fee                                  | 1,913                                           |         
|                                                     | Printing and postage                                     | 1,861                                           |         
|                                                     | Other expenses                                           | 1,510                                           |         
|                                                     | Insurance                                                | 1,396                                           |         
|                                                     | Custodian fees                                           | 925                                             |         
|                                                     | Filing and Registration fees                             | 499                                             |         
|                                                     | Total gross expenses                                     | 27,448                                          |         
|                                                     | Less: advisory fees waived                               | (3,189)                                         |         
|                                                     | Less: custodian fees waived                              | (925)                                           |         
|                                                     | Net expenses                                             |                                                 | 23,334  
|                                                     |                                                          | Net investment income                           |         
|                                                     |                                                          |                                                 |         
|Net realized gain on investments                     |                                                          |                                                 |         
|                                                     | Proceeds from sales                                      | 704,681                                         |         
|                                                     | Less: cost of securities sold (based on identified
cost) | 670,397                                         |         
|                                                     |                                                          | Realized net gain                               |         
|                                                     |                                                          |                                                 |         
|Unrealized gain on investments                       |                                                          |                                                 |         
|                                                     | End of period                                            | 92,663                                          |         
|                                                     | Beginning of period                                      | 33,131                                          |         
|                                                     | Increase in unrealized gain for the period               |                                                 | 59,532  
|                                                     |                                                          | Net realized and unrealized gain on
investments |         
|                                                     |                                                          |                                                 |         
|Net increase in net assets resulting from
operations |                                                          |                                                 | $220,039




(The accompanying notes are an integral
part
  of these financial statements)

|May 31, 2001 Semi-Annual
Report | 5
|------------------------------- | -



---

|Statement
        of Changes in Net Assets |  | 
|------------------------------------------ |  | 

|                                                        |                                                               | Period ended | Year ended   
|------------------------------------------------------- | ------------------------------------------------------------- | ------------ | -------------
|                                                        |                                                               | May 31, 2001 | Nov. 30, 2000
|                                                        |                                                               |              |              
|From Operations                                         |                                                               |              |              
|                                                        | Net investment income                                         | $126,223     | $262,487     
|                                                        | Net realized gain (loss) on investments                       | 34,284       | (71,423)     
|                                                        | Net increase in unealized appreciation                        | 59,532       | 197,204      
|                                                        | Net increase in net assets                                    | $220,039     | $388,268     
|                                                        |                                                               |              |              
|Dividends to shareowners from net investment
income     |                                                               | (128,361)    | (262,550)    
|                                                        |                                                               |              |              
|Fund Share Transactions                                 |                                                               |              |              
|                                                        | Proceeds from sales of shares                                 | 744,829      | 485,456      
|                                                        | Value of shares issued in reinvestment of dividends           | 102,987      | 214,861      
|                                                        |                                                               | 847,816      | 700,317      
|                                                        | Cost of shares redeemed                                       | (317,867)    | (1,350,100)  
|                                                        | Net increase (decrease) in net assets from share
transactions | 529,949      | (649,783)    
|Total increase (decrease) in net assets                 |                                                               | $621,627     | $(524,065)   
|                                                        |                                                               |              |              
|NET ASSETS                                              |                                                               |              |              
|                                                        | Beginning of period                                           | 5,627,894    | 6,151,959    
|                                                        | End of period                                                 | 6,249,521    | 5,627,894    
|                                                        |                                                               |              |              
|Shares of the fund sold and redeemed                    |                                                               |              |              
|                                                        | Number of shares sold                                         | 142,475      | 96,797       
|                                                        | Number of shares issued in reinvestment of dividends          | 19,627       | 42,755       
|                                                        |                                                               | 162,102      | 139,552      
|                                                        | Number of shares redeemed                                     | (226,206)    | (236,298)    
|Net increase (decrease) in number of shares outstanding |                                                               | 101,763      | (130,880)    




(The accompanying notes are an integral
part
  of these financial statements)

|6 | May 31, 2001 Semi-Annual
Report
|- | -------------------------------




---

| |  | Notes
        to Financial Statements
| |  | -------------------------------------

|Organization
        Saturna Investment Trust, (the "Trust") was established under Washington

        State Law as a Business Trust on February 20, 1987. The Trust is
registered
        as a no-load, open-end series investment company under the Investment
        Company Act of 1940, as amended. Four portfolios have been created to
        date in addition to Idaho Tax-Exempt Fund (the "Fund"). The other four
        portfolios distribute through a separate prospectus and the results of
        those funds are contained in a separate report.
      Unaudited Information 
        The information in this interim report has not been subject to
independent
        audit.
      Significant Accounting Policies

        The following is a summary of the significant accounting policies
followed
        by the Funds.
      Investments: 
        Fixed-income securities for which there are no publicly available market

        quotations are valued using matrices based on maturity, quality, yield
        and similar factors, which are compared periodically to multiple dealer
        bids and adjusted by the adviser under policies established by the
Trustees.
      The cost of securities is the same for accounting and Federal income
        tax purposes. Securities transactions are recorded on trade date.
Realized
        gains and losses are recorded on the identified cost basis.
      Income and Expenses:
        Interest income is reduced by the amortization of bond premiums, on a
        constant yield-to-maturity basis from purchase date to maturity or call,

        as appropriate.
      Interest income is increased by accretion only for bonds underwritten
        as original issue discounts. Market discounts are recorded as realized
        gains upon disposition. 
        Expenses incurred by the Trust on behalf of the Fund (e.g., professional

        fees) are allocated to the Fund and the other Funds of the Trust on the
        basis of relative daily average net assets. The Adviser has agreed to
        certain limits on expenses, as described below.
      Income taxes:
        The Fund has elected to be taxed as a regulated investment company under

        the Internal Revenue Code and distribute substantially all of its
taxable
        net investment income and realized net gains on investments. Therefore,
        no provision for Federal income taxes is required. Further, the Fund
intends
        to meet IRS requirements for tax-free income dividends, and requirements

        of the Idaho Department of Revenue for income dividends free of Idaho
        state income tax. | Dividends and distributions to shareowners:
        Dividends and distributions to shareowners are recorded on the
ex-dividend
        date. Dividends are paid daily and distributed on the last business day
        of each month. Shareowners electing to reinvest dividends and
distributions
        purchase additional shares at the net asset value on the distribution
        date.
      Transactions with Affiliated
Persons
        
        Under a contract approved by shareowners on October 12, 1990, Saturna
        Capital Corporation provides investment advisory services and certain
        other administrative and distribution services to conduct the Fund's
business.
        For such services, the Fund pays an annual fee equal to .50% of average
        daily net assets. For the six months ended May 31, 2001, the Fund
incurred
        advisory fee expenses of $14,529.
      Saturna Capital has volunteered to reimburse the Fund to the extent
        that total expenses of the Fund, (excluding interest, brokerage
commissions
        and taxes) exceeds .80% through March 31, 2001. Accordingly, for the six

        months ended May 31, 2001, Saturna Capital waived $3,189 of the advisory

        fee.
      In accordance with the Fund's agreement with its custodian, National
        City Bank of Indiana, for the six months ended May 31, 2001, custodian
        fees incurred by the Fund amounted to $925.
      The Trust acts as a distributor of its own shares, except in those
states
        in which Investors National Corporation (a subsidiary of Saturna Capital

        Corporation) is itself registered as a broker-dealer and acts as
distributor
        without compensation. Saturna Capital Corporation acts as shareowner
servicing
        agent for the Fund, for a monthly fee plus certain expenses. For the six

        months ended May 31, 2001, the Fund paid such a fee of $1,913.
      One trustee is also a director and officer of Saturna Capital
Corporation.
        The unaffiliated trustees receive a fee of $100 per meeting attended,
        and in the period ending May 31, 2001, such fees totalled $800.
      InvestmentsAt May 31, 2001, the net unrealized appreciation of
investments
        for the Fund of $92,663 comprised gross unrealized gains of $122,771 and

        gross unrealized losses of $30,108.
      During the six months ended May 31, 2001, the Fund purchased $1,044,574

        of securities and sold/matured $704,681 of securities.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|May 31, 2001 Semi-Annual
Report | 7
|------------------------------- | -



---

Web: http://www.saturna.com
          E-mail: idaho@saturna.com
        
        
        
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        Saturna
CapitalMutual Funds
        
        
        1-800/SATURNA
          (800/728-8762)1-888/732-6262 for automated assistance, 
          including fund prices
        
        This report is issued for the
          information of the shareowners of the Fund. It is not authorized for
          distribution to prospective investors unless it is accompanied or
preceded
          by an effective prospectus relating to the securities of the Fund.
Idaho
          Tax-Exempt Fund is a series of Saturna Investment Trust
      I D A H OTax-Exempt Fund
        
        
        
        
        
        (graphic omitted)
        A Portfolio of Saturna Investment Trust
        
        
        SEMI-ANNUAL
REPORT
        May 31, 2001









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