|Sextant
      Mutual Funds | (graphic omitted)
|-------------------------- | -----------------





Fellow Shareowners:
  Again in 2002, bonds gained and stocks fell. In the three years since year-end

  1999, assets in all stock mutual funds are off by a third. But much of the
stock
  market decline is offset by appreciation in bonds and real estate.
Economically,
  growth in the consumer and government sectors balances the decline in
industry.
  The Federal Reserve cut short-term interest rates to their lowest levels in
  41 years, further boosting bond prices. This is now stimulating the economy,
  and we expect interest rates to climb slowly during 2003.
  Sextant Bond Income and Sextant Growth funds again significantly bettered
their
  Morningstar peer group averages. Only Sextant International, hurt mostly by
  losses in financial and technology issues, underperformed its peer group
average.
  The no-load Sextant Funds are designed to address a broad spectrum of
investment
  needs. All stress low operating expenses and employ a "fulcrum"
advisory
  fee structure that rewards or penalizes Saturna Capital for investment
results.
  For the fiscal year ended November 30, 2002, comparative total returns and
percentile
  category rankings (1 is best) are:

|Sextant Fund    | Total Return | vs. Morningstar  | Total Return | 12-mo. Rank (group size)*
|--------------- | ------------ | ---------------- | ------------ | -------------------------
|Short-Term Bond | 4.90%        | Short-Term Bonds | 3.69%        | 49 (241)                 
|Bond Income     | 9.02%        | Long-Term Bonds  | 4.84%        | 2 (114)                  
|Growth          | -10.51%      | Large Growth     | -15.32%      | 13 (718)                 
|International   | -15.80%      | Foreign Stock    | -12.31%      | 79 (868)                 

Further information on each Fund is found in the following
sections
    of this report. Our portfolio managers welcome your comments and
suggestions.
    The entire staff works to minimize operating expenses, which are well below
    industry standards. In the footnotes, you will notice another unusual
feature
    of the Sextant funds: on average, almost 25% of each Sextant Fund is owned
    by the trustees, officers, and their immediate families. We invite you to
    invest your money with ours.

Respectfully,



|Nicholas Kaiser,President                                | Phelps McIlvaine,Vice President                                
|-------------------------------------------------------- | ---------------------------------------------------------------
|(Manager, Sextant Growth;
        Sextant International) | (Manager, Sextant Bond Income;
        Sextant Short-Term Bond)

*The 12-month Rank shows how each Fund ranks (from 1 best to
    100 worst) in its Morningstar peer category for the year ended November 30,
    2002 - please see next page for more performance information.

December 27, 2002

---

Additional Performance Information

|Average Annual Total Returns (as of
12/31/2002) | 1 year  | 5 years | 10 years
|----------------------------------------------- | ------- | ------- | --------
|Sextant Growth Fund                             | -18.37% | 4.35%   | 7.93%^  
|Sextant International Fund                      | -22.82% | -1.77%  | 3.21%*  
|Sextant Short-Term Bond Fund                    | 6.95%   | 7.28%   | 5.89%*  
|Sextant Bond Income Fund                        | 13.62%  | 7.36%   | 6.35%^**

|Performance data quoted in this report represents past
performance,
        is before any taxes payable to shareowners, and is no guarantee of
future
        performance. The investment return and principal value of investments
        in the Funds fluctuate daily, and an investor's shares when redeemed may

        be worth more or less than the original cost.
        Morningstar, Inc. is an independent fund performance monitor. Rankings
        are determined monthly from total returns by Morningstar, by category
        as determined by Morningstar. The average total return for a category
        is determined by Saturna Capital, utilizing the Morningstar database.
        Results are shown for twelve months because of the Sextant Funds
performance
        fee advisory structure. | *since inception, 9/28/1995
            **since inception, 3/1/1993
            ^fundchanged investment objectives &policies 
            on 9/28/1995; results prior to that date may 
            not be meaningful
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|REPORT OF INDEPENDENT
CERTIFIED
            PUBLIC ACCOUNTANTS
          To the Shareholders and Board of Trustees
            Saturna Investment Trust
            We have audited the accompanying statement of assets and liabilities

            of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund,
Sextant
            Growth Fund and Sextant International Fund, each a series of the
Saturna
            Investment Trust, including the schedules of investments as of
November
            30, 2002, and the related statements of operations for the year then

            ended, and the changes in net assets for each of the two years then
            ended, and the financial highlights for each of the five years then
            ended. These financial statements and financial highlights are the
            responsibility of the Trusts management. Our responsibility
            is to express an opinion on these financial statements and financial

            highlights based on our audits. 
            We conducted our audits in accordance with auditing standards
generally
            accepted in the United States of America. Those standards require
            that we plan and perform the audit to obtain reasonable assurance
            about whether the financial statements and financial highlights are
            free of material misstatement. An audit includes examining, on a
test
            basis, evidence supporting the amounts and disclosures in the
financial
            statements. Our procedures included confirmation of securities owned

            as of November 30, 2002, by correspondence with the custodian and
            broker. Our audit also includes assessing the accounting principles
            used and significant estimates made by management, as well as
evaluating
            the overall financial statement presentation. We believe that our
            audits provide a reasonable basis for our opinion. 
            In our opinion the financial statements and financial highlights
referred
            to above present fairly, in all material respects, the financial
position
            of Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant
            Growth Fund, and Sextant International Fund, as of November 30,
2002,
            the results of their operations for the year then ended, and the
changes
            in their net assets for each of the two years then ended and their
            financial highlights for each of the five years in the period then
            ended, in conformity with accounting principles generally accepted
            in the United States of America.
          TAIT, WELLER &
BAKER
          Philadelphia, Pennsylvania
            December 13, 2002
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 |  | November 30,
          2002 Annual Report
|- |  | -----------------------------------------

---

|(graphic omitted)SEXTANT
        SHORT-TERM BOND FUND |  | INVESTMENTS
|----------------------------------------------------- |  | -----------

|Rating*                                                       | Issuer                          | Coupon/Maturity  | Face Amount             | Market Value
|------------------------------------------------------------- | ------------------------------- | ---------------- | ----------------------- | ------------
|                                                              |                                 |                  | As of November 30, 2002
|                                                              | Auto/Truck Manufacturing (4.3%) |                  |                         |             
|A-                                                            | Daimler Crysler Corporation     | 6.90% 9/1/2004   | $90,000                 | $94,599     
|                                                              | Banking (12.2%)                 |                  |                         |             
|A+                                                            | Australia & New Zealand Bank    | 6.25% 2/1/2004   | 85,000                  | 88,069      
|A                                                             | Bankers Trust (DB) sub notes    | 8.25% 5/1/2005   | 85,000                  | 92,020      
|A+                                                            | JP Morgan                       | 7.625% 9/15/2004 | 80,000                  | 84,974      
|                                                              |                                 | SUB-TOTAL        | 250,000                 | 265,063     
|                                                              | Building Products (3.6%)        |                  |                         |             
|A-                                                            | Lowe's Companies                | 7.50% 12/15/2005 | 70,000                  | 78,169      
|                                                              | Chemicals (3%)                  |                  |                         |             
|A-                                                            | Praxair                         | 6.15% 4/15/2003  | 65,000                  | 65,516      
|                                                              | Computer (7.1%)                 |                  |                         |             
|AA-                                                           | Hewlett Packard                 | 7.15% 6/15/2005  | 70,000                  | 75,092      
|BBB                                                           | Sun Microsystems                | 7.35% 8/15/2004  | 80,000                  | 80,175      
|                                                              |                                 | SUB-TOTAL        | 150,000                 | 155,267     
|                                                              | Cosmetics & Toiletries (3.5%)   |                  |                         |             
|BBB                                                           | Dial Corporation                | 6.625% 6/15/2003 | 75,000                  | 76,048      
|                                                              | Finance & Insurance (16.2%)     |                  |                         |             
|A                                                             | Allliance Capital Management    | 5.625% 8/15/2006 | 65,000                  | 67,769      
|A+                                                            | International Finance AIG       | 5.75% 10/15/2006 | 95,000                  | 96,831      
|A-                                                            | Lincoln National Insurance      | 7.25% 5/15/2005  | 100,000                 | 106,269     
|A-                                                            | Washington Mutual Financial     | 8.25% 6/15/2005  | 75,000                  | 82,676      
|                                                              |                                 | SUB-TOTAL        | 335,000                 | 353,545     
|                                                              | Food (2.3%)                     |                  |                         |             
|A                                                             | Coca Cola Enterprises           | 7.875% 2/1/2002  | 50,000                  | 50,095      
|                                                              | Machinery (8.5%)                |                  |                         |             
|A                                                             | Deere                           | 6.55% 7/15/2004  | 90,000                  | 94,407      
|A                                                             | Eaton                           | 6.95% 11/15/2004 | 85,000                  | 90,207      
|                                                              |                                 | SUB-TOTAL        | 175,000                 | 184,614     
|                                                              | Medical Drugs (11.6%)           |                  |                         |             
|AAA                                                           | Bristol Myers Squibb            | 4.75% 10/1/2006  | 90,000                  | 92,236      
|A                                                             | Cardinal Health                 | 6.50% 2/15/2004  | 75,000                  | 77,586      
|A-                                                            | Wyeth                           | 7.90% 2/15/2005  | 75,000                  | 81,525      
|                                                              |                                 | SUB-TOTAL        | 240,000                 | 251,347     
|                                                              | Oil & Gas (5%)                  |                  |                         |             
|BBB+                                                          | Union Oil of California         | 7.20% 5/15/2005  | 100,000                 | 107,116     
|                                                              | Publishing (2.2%)               |                  |                         |             
|A-                                                            | Tribune                         | 6.875% 11/1/2006 | 45,000                  | 48,453      
|                                                              | Retail (2.3%)                   |                  |                         |             
|BBB                                                           | Safeway                         | 6.05% 11/15/2003 | 50,000                  | 50,504      
|                                                              | Telecommunications (4.2%)       |                  |                         |             
|BBB                                                           | Sprint Capital                  | 5.875% 5/1/2004  | 100,000                 | 92,287      
|                                                              | Utilities (9.4%)                |                  |                         |             
|AA-                                                           | Florida Power & Light           | 6.875% 12/1/2005 | 95,000                  | 102,418     
|AA-                                                           | Southwestern Bell Telephone     | 6.625% 7/15/2007 | 95,000                  | 101,461     
|                                                              |                                 | SUB-TOTAL        | 190,000                 | 203,879     
|                                                              |                                 |                  |                         |             
|Total Investments (93.1%)                                     | (Cost = $1,962,880)             | $1,935,000       | 2,026,407              
|Other Assets (net of liabilities) (6.9%)                      |                                 |                  | 150,650                
|Total Net Assets (100%)                                       |                                 |                  | $2,177,057             
|*Ratings are the lesser of S&P or
Moody's
        (unaudited) |                                 |                  |                        

|November
        30, 2002 Annual Report |  | 3
|--------------------------------------- |  | -

---

|(Graphic
        Omitted) FINANCIAL
HIGHLIGHTS |  | SEXTANT
SHORT-TERM
          BOND FUND
|---------------------------------------------- |  | --------------------------------------

|Selected data per share of capital stock outstanding
        throughout the year                                                                                                                                                                                          | Year ended November 30,                                         
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------
|                                                                                                                                                                                                                                                                          |                                                                 
|Net asset value at beginning of year                                                                                                                                                                                                                                      |                                                                 
|                                                                                                                                                                                                                                                                          | Income from investment operations                               
|                                                                                                                                                                                                                                                                          | Net investment income                                           
|                                                                                                                                                                                                                                                                          | Net gains or losses on securities (both realized and
unrealized)
|Total from investment operations                                                                                                                                                                                                                                          |                                                                 
|                                                                                                                                                                                                                                                                          | Less distributions                                              
|                                                                                                                                                                                                                                                                          | Dividends (from net investment income)                          
|                                                                                                                                                                                                                                                                          | Distributions (from capital gains)                              
|Total distributions                                                                                                                                                                                                                                                       |                                                                 
|Net asset value at end of year                                                                                                                                                                                                                                            |                                                                 
|Total Return                                                                                                                                                                                                                                                              |                                                                 
|                                                                                                                                                                                                                                                                          |                                                                 
|Ratios / Supplemental Data                                                                                                                                                                                                                                                |                                                                 
|Net assets ($000), end of year                                                                                                                                                                                                                                            |                                                                 
|Ratio of expenses to average net assets*                                                                                                                                                                                                                                  |                                                                 
|Ratio of net investment income to average net assets                                                                                                                                                                                                                      |                                                                 
|Portfolio turnover rate                                                                                                                                                                                                                                                   |                                                                 
|*For the above years, all or a portion of
        the operating expenses were waived. If costs had not been waived, the
        resulting increase to the ratio of expenses to average monthly net
assets
        would be .21%, .43%, .41%, .57% and .44%, respectively.



|STATEMENT OF
ASSETS
          AND LIABILITIES
|---------------------------------------------



|As of November 30, 2002                                  |                                                                          |                                                  |            |           
|-------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ----------
|Assets                                                   |                                                                          |                                                  |            |           
|                                                         | Bond investments (Cost $1,962,880)                                       |                                                  | $2,026,407 |           
|                                                         | Cash                                                                     |                                                  | 120,463    |           
|                                                         | Interest Receivable                                                      |                                                  | 31,919     |           
|                                                         |                                                                          | Total Assets                                     |            | $2,178,789
|                                                         |                                                                          |                                                  |            |           
|Liabilities                                              |                                                                          |                                                  |            |           
|                                                         | Other Liabilities                                                        |                                                  | 1,732      |           
|                                                         |                                                                          | Total Liabilities                                |            | 1,732     
|                                                         |                                                                          |                                                  |            |           
|Net Assets                                               |                                                                          |                                                  |            | $2,177,057
|                                                         |                                                                          |                                                  |            |           
|Fund shares outstanding                                  |                                                                          |                                                  |            | 429,235   
|                                                         |                                                                          |                                                  |            |           
|Analysis of Net Assets                                   |                                                                          |                                                  |            |           
|                                                         | Paid in Capital (unlimited shares authorized, without par
        value) |                                                  | 2,149,250  |           
|                                                         | Accumlated net realized loss                                             |                                                  | (35,720)   |           
|                                                         | Unrealized net appreciation on investments                               |                                                  | 63,527     |           
|                                                         |                                                                          | Net Assets applicable to Fund shares outstanding |            | $2,177,057
|                                                         |                                                                          |                                                  |            |           
|Net Asset Value, Offering and Redemption price per
share |                                                                          |                                                  | $5.07     

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

|4 |  | November 30,
          2002 Annual Report
|- |  | -----------------------------------------

---

|SEXTANT
SHORT-TERM
        BOND FUND |  | STATEMENT OF
OPERATIONS(Graphic
          Omitted)
|------------------------------------ |  | --------------------------------------------------

|                                                     |                                                        |                                  | For the year ended November 30, 2002
|---------------------------------------------------- | ------------------------------------------------------ | -------------------------------- | ------------------------------------
|Investment Income                                    |                                                        |                                  |                                     
|                                                     | Interest income                                        |                                  | $135,792                            
|                                                     | Amortization of bond premium                           |                                  | (11,331)                            
|                                                     | Accretion                                              |                                  | 11,125                              
|                                                     |                                                        | Gross investment income          |                                     
|                                                     |                                                        |                                  |                                     
|Expenses                                             |                                                        |                                  |                                     
|                                                     | Investment advisor and administration fees             |                                  | 13,566                              
|                                                     | Professional fees                                      |                                  | 3,334                               
|                                                     | Filing and registration fees                           |                                  | 3,272                               
|                                                     | Custodian fees                                         |                                  | 2,065                               
|                                                     | Other expenses                                         |                                  | 1,085                               
|                                                     | Insurance                                              |                                  | 902                                 
|                                                     | Printing and postage                                   |                                  | 795                                 
|                                                     | Total gross expenses                                   |                                  | 25,019                              
|                                                     | Less advisor fees waived                               |                                  | (2,517)                             
|                                                     | Less custodian fees waived                             |                                  | (2,065)                             
|                                                     | Net expenses                                           |                                  |                                     
|                                                     |                                                        | Net investment income            |                                     
|                                                     |                                                        |                                  |                                     
|Net realized gain on investments                     |                                                        |                                  |                                     
|                                                     | Proceeds from sales                                    |                                  | 618,782                             
|                                                     | Less: cost of securities sold based on identified
cost |                                  | 617,368                             
|                                                     |                                                        | Realized net gain                |                                     
|                                                     |                                                        |                                  |                                     
|Unrealized gain on investments                       |                                                        |                                  |                                     
|                                                     | End of year                                            |                                  | 63,527                              
|                                                     | Beginning of year                                      |                                  | 75,853                              
|                                                     | Decrease in unrealized gain for the year               |                                  |                                     
|                                                     |                                                        | Net realized and unrealized loss |                                     
|                                                     |                                                        |                                  |                                     
|Net increase in net assets resulting from
operations |                                                        |                                  | $104,237                            

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

|November 30, 2002
        Annual Report |  | 5
|--------------------------------------- |  | -

---

|(Graphic

        Omitted)STATEMENT OF
        CHANGES IN NET ASSETS |  | SEXTANT
SHORT-TERM
          BOND FUND
|-------------------------------------------------------------------- |  | --------------------------------------

|                                                        |                                                      |                                       | Year ended    | Year ended   
|------------------------------------------------------- | ---------------------------------------------------- | ------------------------------------- | ------------- | -------------
|                                                        |                                                      |                                       | Nov. 30, 2002 | Nov. 30, 2001
|INCREASE (DECREASEE) IN NET ASSETS                      |                                                      |                                       |               |              
|From Operations                                         |                                                      |                                       |               |              
|                                                        | Net investment income                                |                                       | $115,149      | $116,659     
|                                                        | Net realized gain (loss) on investments              |                                       | 1,414         | (14,763)     
|                                                        | Net increase (decrease) in unrealized appreciation   |                                       | (12,326)      | 80,934       
|                                                        |                                                      | Net increase in net assets            | 104,237       | 182,830      
|                                                        |                                                      |                                       |               |              
|Dividends to shareowners from                           |                                                      |                                       |               |              
|                                                        | Net investment income                                |                                       | (118,239)     | (114,823)    
|                                                        |                                                      |                                       |               |              
|Fund Share transactions                                 |                                                      |                                       |               |              
|                                                        | Proceeds from sales of shares                        |                                       | 439,793       | 351,703      
|                                                        | Value of shares issued in reinvestment of
dividends  |                                       | 117,683       | 113,922      
|                                                        |                                                      |                                       | 557,476       | 465,625      
|                                                        | Cost of shares redeemed                              |                                       | (555,278)     | (899,416)    
|                                                        |                                                      | Net increase (decrease) in net assets | 2,198         | (433,791)    
|Total decrease in net assets                            |                                                      |                                       | $(11,804)     | $(365,784)   
|                                                        |                                                      |                                       |               |              
|NET ASSETS                                              |                                                      |                                       |               |              
|                                                        | Beginning of year                                    |                                       | 2,188,861     | 2,554,645    
|                                                        | End of year                                          |                                       | $2,177,057    | $2,188,861   
|                                                        |                                                      |                                       |               |              
|Shares of the fund sold and redeemed                    |                                                      |                                       |               |              
|                                                        | Number of shares sold                                |                                       | 86,066        | 70,340       
|                                                        | Number of shares issued in reinvestment of dividends |                                       | 23,087        | 22,596       
|                                                        |                                                      |                                       | 109,153       | 92,936       
|                                                        | Number of shares redeemed                            |                                       | (109,001)     | (180,306)    
|Net increase (decrease) in number of shares
outstanding |                                                      | 152                                   | (87,370)     

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

|DISCUSSION
        OF SEXTANT SHORT-TERM BOND FUND PERFORMANCE | (unaudited)
|-------------------------------------------------------------- | -----------

FISCAL YEAR
2002For the fiscal year, the Sextant Short-Term Bond Fund returned 4.90%.
    The share price moved in a range of $5.03 to $5.17 or 2.78%. The thirty-day
    SEC yield fell to 3.21% in line with lower market rates. The Fund ranked in
    the top 49% of 241 funds in the Morningstar Short-term Bond
category.
    For the last five years, the Fund earned 5.86% annualized total return,
ranking
    in the top 47% of 159 funds in its Morningstar category. At November 30,
2002,
    the Fund held Morningstars 3-star rating (judged against 194
short-term
    bond funds). For the third year, the Fund substantially outperformed most
    equity portfolios as the stock market declined further.

|6 |  | November 30,

          2002 Annual Report
|- |  | ------------------------------------------

---

FACTORS AFFECTING
PERFOMANCEOver the last twelve months, the Federal Reserve lowered the Federal
Funds
    rate from 2.00% to 1.25% to boost the economy. Long US Treasury rates moved
    below five percent unleashing more mortgage refinancing and home buying.
Corporate
    bankruptcies in June triggered a stock market decline and flight to quality
    to US Treasury debt. Credit spreads widened, especially in credits of BBB
    and lower. New scrutiny for corporate accounting and improved profits
restored
    market confidence returning AAA spreads to the levels seen a year ago. The
    BBB sector continues to lag the AAA/AA group. The Funds portfolio was
    underweight US Treasuries and owns BBB rated corporate bonds which was
detrimental
    to total return. The Funds average maturity continued at less than
three
    years.

LOOKING
FORWARD
    We expect the US economy to grow approximately 3% in 2003, corporate profits

    to increase around 10%. The Republicans success in November 2002 will
    lead to more fiscal stimulus and tax cuts in 2003. Low mortgage rates and
    low prices have supported consumer spending, however we look for
manufacturing
    and capital spending to be the engine of growth in 2003. The Federal Reserve

    will push short-term interest rates toward 3% and investment grade spreads
    should narrow as profits recover. The Fund will continue to overweight high
    grade corporate notes over other instruments.

MANAGEMENT FEE
CALCULATIONS
    The Sextant Short-Term Bond Fund calculates part of its management fee based

    on a comparison of the Funds return to the average return of the
Morningstar
    category Short-Term Bond. The Funds 12-month return (4.90%) differed
    by more than one percent from that of the average (3.69%) on November 30,
    2002. Therefore, a performance bonus adjustment of 0.10% was added to the
    basic 0.60% annual management fee for the month of December 2002.

COMPARISON TO
INDEX
    Comparison of any mutual fund to a market index must be made bearing in mind

    that the Index is unmanaged, and expense-free. The graph below compares
$10,000
    invested in the Fund at its inception in September 1995, compared to a
similar
    amount invested in the Salomon Brothers Gov/Corp Investment Grade Bond Index

    for maturities between one and three years. The graph shows that a $10,000
    investment made on September 1995 would have risen to $14,845 in the Fund
    and $15,710 in the Index. The returns shown do not reflect the deduction of
    income taxes that an investor could pay on income received or the sale of
    profitable investments.



Sextant Short-Term Bond Fund vs. Salomon Gov/Corp 1-3 yr.
(unaudited)

(graph omitted)





|November 30, 2002
        Annual Report |  | 7
|--------------------------------------- |  | -

---

|INVESTMENTS |  | SEXTANT BOND

          INCOME FUND(Graphic
          Omitted)
|----------- |  | --------------------------------------------------------------

|Rating* | Issuer                                | Coupon/Maturity  | Face Amount             | Market Value
|------- | ------------------------------------- | ---------------- | ----------------------- | ------------
|        |                                       |                  | As of November 30, 2002
|        | Banking (10.2%)                       |                  |                         |             
|A+      | Chase Manhattan                       | 7.125% 6/15/2009 | $50,000                 | $53,592     
|A       | Citicorp                              | 7.25% 10/15/2011 | 50,000                  | 55,002      
|A-      | Comerica Bank                         | 7.125% 12/1/2013 | 50,000                  | 51,666      
|A+      | Norwest Financial                     | 6.85% 7/15/2009  | 50,000                  | 54,555      
|        |                                       | SUB-TOTAL        | 200,000                 | 214,815     
|        | Building Products (3.2%)              |                  |                         |             
|BBB+    | Masco Corporation                     | 7.125% 8/15/2013 | 60,000                  | 67,215      
|        | Chemicals (3%)                        |                  |                         |             
|A-      | Air Products & Chemicals              | 8.75% 4/15/2021  | 50,000                  | 64,122      
|        | Computer (1.5%)                       |                  |                         |             
|A       | Dell Computer                         | 6.55% 4/15/2008  | 30,000                  | 30,195      
|        | Diversified Financial Services (3.4%) |                  |                         |             
|AAA     | General Electric Capital              | 8.125% 5/15/2012 | 60,000                  | 70,635      
|        | Electric Utilities (2.7%)             |                  |                         |             
|A-      | Commonwealth Edison                   | 7.50% 7/1/2013   | 50,000                  | 57,410      
|        | Electronics (2.6%)                    |                  |                         |             
|A-      | Koninlijke Phillips Electronics       | 7.25% 8/15/2013  | 50,000                  | 54,127      
|        | Food (9.3%)                           |                  |                         |             
|BBB     | Conagra                               | 7.875% 9/15/2010 | 50,000                  | 57,045      
|A+      | Hershy Foods                          | 6.95% 8/15/2012  | 50,000                  | 56,242      
|A-      | HJ Heinz                              | 6.00 % 3/15/2012 | 75,000                  | 82,676      
|        |                                       | SUB-TOTAL        | 175,000                 | 195,963     
|        | Insurance (6.6%)                      |                  |                         |             
|A       | Allstate                              | 7.50% 6/15/2013  | 50,000                  | 57,768      
|A       | Progressive                           | 7.00% 10/1/2013  | 75,000                  | 80,988      
|        |                                       | SUB-TOTAL        | 125,000                 | 138,756     
|        | Investment Finance (5.3%)             |                  |                         |             
|AA-     | Morgan Stanley Dean Witter            | 6.75% 10/15/2013 | 50,000                  | 52,932      
|AA      | Paine Webber Group                    | 7.625% 2/15/2014 | 50,000                  | 58,420      
|        |                                       | SUB-TOTAL        | 100,000                 | 111,352     
|        | Machinery (6%)                        |                  |                         |             
|A       | Caterpillar                           | 9.375% 8/15/2011 | 40,000                  | 50,746      
|A+      | Dover                                 | 6.25% 6/1/2008   | 70,000                  | 76,016      
|        |                                       | SUB-TOTAL        | 110,000                 | 126,762     

|8 |  | November 30,
          2001 Annual Report
|- |  | -----------------------------------------

---

|INVESTMENTS |  | SEXTANT BOND

          INCOME FUND(Graphic
          Omitted)
|----------- |  | --------------------------------------------------------------

|Rating*                                               | Issuer                        | Coupon/Maturity  | Face Amount | Market Value
|----------------------------------------------------- | ----------------------------- | ---------------- | ----------- | ------------
|                                                      |                               |                  |             |             
|                                                      | Medical Supplies (2.1%)       |                  |             |             
|A+                                                    | Becton Dickinson              | 7.15% 10/1/2009  | $40,000     | $44,626     
|                                                      | Oil & Gas (5.7%)              |                  |             |             
|A                                                     | Baker Hughes                  | 6.00% 2/15/2009  | 70,000      | 72,907      
|A                                                     | Texaco Capital                | 8.625% 6/30/2010 | 40,000      | 47,487      
|                                                      |                               | SUB-TOTAL        | 110,000     | 120,394     
|                                                      | Retailing (11.1%)             |                  |             |             
|A                                                     | Dayton Hudson (Target Stores) | 10.00% 1/1/2011  | 50,000      | 64,969      
|A                                                     | Lowe's Companies              | 8.25% 6/1/2010   | 50,000      | 59,275      
|A+                                                    | May Department Stores         | 8.00% 7/15/2012  | 50,000      | 57,297      
|AA                                                    | Wal-Mart Stores               | 7.25% 6/1/2013   | 45,000      | 52,727      
|                                                      |                               | SUB-TOTAL        | 195,000     | 234,268     
|                                                      | Telecommunications (2.5%)     |                  |             |             
|AA-                                                   | GTE                           | 6.90% 11/1/2008  | 50,000      | 52,682      
|                                                      | Transportation (6.3%)         |                  |             |             
|BBB+                                                  | Southwest Airlines            | 6.50% 3/1/2012   | 75,000      | 76,973      
|A-                                                    | US Freightways                | 8.50% 4/25/2010  | 50,000      | 54,523      
|                                                      |                               | SUB-TOTAL        | 125,000     | 131,496     
|                                                      | US Government (11.8%)         |                  |             |             
|AAA                                                   | US Treasury Bond              | 5.50% 2/15/2008  | 225,000     | 247,852     
|                                                      |                               |                  |             |             
|Total Investments (91.8%)                             | (Cost = $1,809,092)           | $1,725,000       | 1,932,475  
|Other Assets (net of liabilities) (8.2%)              |                               |                  | 172,698    
|Total Net Assets (100%)                               |                               |                  | $2,105,173 
|                                                      |                               |                  |            
|*Ratings are the lesser of S&P or Moody's (unaudited) |                               |                  |            



|November 30, 2001
        Annual Report |  | 9
|--------------------------------------- |  | -

---



|FINANCIAL HIGHLIGHTS |  | SEXTANT BOND
INCOME
          FUND(graphic
          omitted)
|-------------------- |  | -------------------------------------------------------------

|Selected data per share of capital stock outstanding
throughout
        the year                                                                                                                                                                                                         |                                                                  |                             |        |        |         |       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | --------------------------- | ------ | ------ | ------- | ------
|                                                                                                                                                                                                                                                                                         |                                                                  | For Year Ended November 30, |        |       
|                                                                                                                                                                                                                                                                                         |                                                                  | 2001                        | 2001   | 2000   | 1999    | 1998  
|Net asset value at beginning of year                                                                                                                                                                                                                                                     |                                                                  | $4.81                       | $4.56  | $4.59  | $5.00   | $4.83 
|                                                                                                                                                                                                                                                                                         | Income from investment operations                                |                             |        |        |         |       
|                                                                                                                                                                                                                                                                                         | Net investment income                                            | 0.26                        | 0.30   | 0.29   | 0.30    | 0.29  
|                                                                                                                                                                                                                                                                                         | Net gains or losses on securities (both realized and
unrealized) | 0.16                        | 0.25   | (0.03) | (0.41)  | 0.17  
|Total from investment operations                                                                                                                                                                                                                                                         |                                                                  | 0.42                        | 0.55   | 0.26   | (0.11)  | 0.46  
|                                                                                                                                                                                                                                                                                         | Less distributions                                               |                             |        |        |         |       
|                                                                                                                                                                                                                                                                                         | Dividends (from net investment income)                           |                             |        |        |         |       
|                                                                                                                                                                                                                                                                                         |                                                                  | (0.26)                      | (0.30) | (0.29) | (0.30)  | (0.29)
|                                                                                                                                                                                                                                                                                         | Distributions (from capital gains)                               | -                           | -      | -      | -       | -     
|Total distributions                                                                                                                                                                                                                                                                      |                                                                  | (0.26)                      | (0.30) | (0.29) | (0.30)  | (0.29)
|Net asset value at end of year                                                                                                                                                                                                                                                           |                                                                  | $4.97                       | $4.81  | $4.56  | $4.59   | $5.00 
|Total return                                                                                                                                                                                                                                                                             |                                                                  | 9.02%                       | 12.40% | 6.05%  | (2.20)% | 10.08%
|Ratios/supplemental data                                                                                                                                                                                                                                                                 |                                                                  |                             |        |        |         |       
|Net assets ($000), end of year                                                                                                                                                                                                                                                           |                                                                  | $2,105                      | $1,965 | $1,505 | $885    | $1,345
|Ratio of expenses to average net assets*                                                                                                                                                                                                                                                 |                                                                  | 0.72%                       | 0.34%  | 0.35%  | 0.39%   | 0.30% 
|Ratio of net investment income to average net assets                                                                                                                                                                                                                                     |                                                                  | 5.40%                       | 6.71%  | 6.56%  | 6.31%   | 6.24% 
|Portfolio turnover rate                                                                                                                                                                                                                                                                  |                                                                  | 29%                         | 30%    | 0%     | 20%     | 0%    
|*For each of the above years, all or a portion of the
operating
        expenses were waived. If these costs had not been waived, the resulting
        increases to the ratio of expenses to average monthly net assets would
        be .34%, .72%, .64%,.66%, and .61%, respectively.

|STATEMENT OF
ASSETS
          AND LIABILITIES
|---------------------------------------------

|As of November 30, 2002                                  |                                                                          |                                                  |            |           
|-------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ----------
|                                                         |                                                                          |                                                  |            |           
|Assets                                                   |                                                                          |                                                  |            |           
|                                                         | Bond investments (cost $1,809,092)                                       |                                                  | $1,881,355 |           
|                                                         | Cash                                                                     |                                                  | 86,525     |           
|                                                         | Receivable for security sales                                            |                                                  | 50,038     |           
|                                                         | Interest receivable                                                      |                                                  | 35,182     |           
|                                                         | Insurance reserve premium                                                |                                                  | 1,221      |           
|                                                         |                                                                          | Total Assets                                     |            | $2,105,441
|Liabilities                                              |                                                                          |                                                  |            |           
|                                                         | Other Liabilities                                                        |                                                  | 268        |           
|                                                         |                                                                          | Total Liabilities                                |            | 268       
|Net Assets                                               |                                                                          |                                                  |            | $2,105,173
|Fund Shares Outstanding                                  |                                                                          |                                                  |            | 423,781   
|Analysis of Net Assets                                   |                                                                          |                                                  |            |           
|                                                         | Paid in capital (unlimited shares authorized, without par
        value) |                                                  | 2,030,738  |           
|                                                         | Accumlated net realized loss                                             |                                                  | (48,948)   |           
|                                                         | Unrealized net appreciation on investments                               |                                                  | 123,383    |           
|                                                         |                                                                          | Net Assets applicable to Fund shares outstanding |            | $2,105,173
|Net Asset Value, Offering and Redemption price per
share |                                                                          |                                                  | $4.97     

|10 |  | November 30,
          2002 Annual Report
|-- |  | -----------------------------------------

---

|(graphic
omitted)SEXTANT BOND INCOME FUND |  | STATEMENT OF
OPERATIONS
|----------------------------------------- |  | -----------------------

|                                                     |                                                         |                                  | For the year ended November 30, 2002
|---------------------------------------------------- | ------------------------------------------------------- | -------------------------------- | ------------------------------------
|Investment income                                    |                                                         |                                  |                                     
|                                                     | Interest income                                         |                                  | $128,066                            
|                                                     | Amortization of bond premium                            |                                  | (7,144)                             
|                                                     | Accretion                                               |                                  | 168                                 
|                                                     |                                                         | Gross investment income          |                                     
|Expenses                                             |                                                         |                                  |                                     
|                                                     | Investment advisor and administration fees              |                                  | 11,975                              
|                                                     | Filing and registration fees                            |                                  | 3,343                               
|                                                     | Professional fees                                       |                                  | 3,264                               
|                                                     | Other expenses                                          |                                  | 1,050                               
|                                                     | Custodian fees                                          |                                  | 789                                 
|                                                     | Printing and postage                                    |                                  | 700                                 
|                                                     | Insurance                                               |                                  | 650                                 
|                                                     | Total gross expenses                                    |                                  | 21,771                              
|                                                     | Less advisor fees waived                                |                                  | (6,808)                             
|                                                     | Less custodian fees waived                              |                                  | (789)                               
|                                                     | Net expenses                                            |                                  |                                     
|                                                     |                                                         | Net investment income            |                                     
|Net realized loss on investments                     |                                                         |                                  |                                     
|                                                     | Proceeds from sales                                     |                                  | 549,603                             
|                                                     | Less cost of securities sold (based on identified cost) |                                  | 563,856                             
|                                                     |                                                         | Realized net loss                |                                     
|Unrealized gain on investments                       |                                                         |                                  |                                     
|                                                     | End of year                                             |                                  | 123,383                             
|                                                     | Beginning of year                                       |                                  | 48,912                              
|                                                     | Increase in unrealized gain for the period              |                                  |                                     
|                                                     |                                                         | Net realized and unrealized gain |                                     
|Net increase in net assets resulting from
operations |                                                         |                                  | $167,134                            

| |  | 
| |  | 



|STATEMENT OF
CHANGES
      IN NET ASSETS |  | 
|---------------------------------------- |  | 

|                                             |                                                      | Year ended    | Year ended   
|-------------------------------------------- | ---------------------------------------------------- | ------------- | -------------
|                                             |                                                      | Nov. 30, 2002 | Nov. 30, 2001
|INCREASE IN NET ASSETS                       |                                                      |               |              
|From Operations                              |                                                      |               |              
|                                             | Net investment income                                | $106,916      | $104,689     
|                                             | Net realized loss on investments                     | (14,253)      | (2,114)      
|                                             | Net increase in unealized appreciation               | 74,471        | 89,413       
|                                             | Net increase in net assets                           | 167,134       | 191,988      
|                                             |                                                      |               |              
|Dividends to shareowners from                |                                                      |               |              
|                                             | Net investment income                                | (107,024)     | (104,689)    
|                                             |                                                      |               |              
|From tund share transactions                 |                                                      |               |              
|                                             | Proceeds from sales of shares                        | 365,971       | 578,938      
|                                             | Value of shares issued in reinvestment of dividends  | 103,671       | 103,332      
|                                             |                                                      | 469,642       | 682,270      
|                                             | Cost of shares redeemed                              | (389,165)     | (310,083)    
|                                             | Net increase in net assets                           | 80,477        | 372,187      
|Total increase in net assets                 |                                                      | $140,587      | $459,486     
|                                             |                                                      |               |              
|NET ASSETS                                   |                                                      |               |              
|                                             | Beginning of year                                    | 1,964,586     | 1,505,100    
|                                             | End of year                                          | $2,105,173    | $1,964,586   
|                                             |                                                      |               |              
|Shares of the fund sold and redeemed         |                                                      |               |              
|                                             | Number of shares sold                                | 75,292        | 121,443      
|                                             | Number of shares issued in reinvestment of dividends | 21,389        | 21,787       
|                                             |                                                      | 96,681        | 143,230      
|                                             | Number of shares redeemed                            | (80,967)      | (65,605)     
|Net increase in number of shares outstanding |                                                      | 15,714        | 77,625       



|November 30, 2002
      Annual Report |  | 11
|------------------------------------- |  | --

---

|DISCUSSION
      OF SEXTANT BOND INCOME FUND PERFORMANCE | (unaudited)
|-------------------------------------------------------- | -----------

FISCAL YEAR 2002
  For the fiscal year ending November 30, 2002, the Sextant Bond Income Fund
returned
  9.02%. For the fiscal year, the Fund ranked in the top 2% of the 114 funds in
  the Morningstar Long-term Bond category and held
Morningstars
  top 5-star rating (judged against 91 long-term bond funds). For
  the last five years, the Fund has provided a 6.97% annualized total return and

  ranks in the top 9% of 73 funds in its Morningstar category. The Funds
  most recent thirty-day SEC yield is 4.60%, less than the 6.44% last year. This

  reflects lower market rates and a shorter average maturity. The majority of
  the Funds risk and return comes from an average portfolio maturity that
  historically exceeded its peers.

FACTORS AFFECTING PAST
PERFORMANCE
  As long term interest rates approached their low for this cycle, the
Funds
  average effective maturity was reduced from over 10 years to less than 8.
Under
  normal circumstances, the Funds policy is to maintain a dollar-weighted
  average maturity of ten years or more. However, with interest rate levels
lower
  than they have been in over 40 years, the price risk of holding long-term
bonds
  is excessive in light of the Funds capital preservation goal. 
  Corporate bankruptcies in June triggered a stock market decline and flight to
  quality into US Treasury debt. Credit spreads widened. This widening was
pronounced
  in credits of BBB and lower. New Scrutiny for corporate accounting and higher
  profits have restored market confidence. AAA spreads have returned to the
levels
  seen one year ago. The BBB sector continues to lag the AAA/AA group. The
Funds
  portfolio was underweight US Treasuries and owns a few BBB rated corporate
bonds
  which reduced total return.
  Investment-grade corporate paper produced a total return of 5.49% as measured
  by the Solomon Brothers Corporate Index (SBCRP) while US Treasury paper as
measured
  the Solomon Brothers Treasury Index (SBGT) returned 7.81%. As expected during
  a flight to quality, the Sextant Bond Income Funds 9.04% return was less

  than the 10.09% one-year return on the Solomon US Treasury Index 10+ years.
  The Bond market benefited from the marked weakness in equity prices. For the
  third year, the Fund easily outperformed most equity portfolios.

LOOKING FORWARDFor 2003, we expect long-term US Treasury rates will spend another year
  between 6.25% to 4.75%. We expect the US economy to grow 3% in 2003 and
corporate
  profits to increase around 10%. The Republicans success in November 2002

  is leading to more fiscal stimulus and tax cuts in 2003. Low mortgage rates
  and low prices supported consumer spending and the economy in 2002, however
  we look for manufacturing and capital spending to be the engine of growth in
  2003 and beyond. We expect the Federal Reserve Bank to push short-term
interest
  rates toward 3% and investment grade spreads to narrow as corporate profits
  recover. The Fund will continue to overweight high grade corporate notes over
  other instruments.
  Commodity prices are rising, but overall inflation, remains subdued. We expect

  the recovery to manifest itself slowly. We do not expect a cyclical rise in
  rates until after the economic recovery is further underway. This still leaves

  investors with an extended period of time that is favorable for investing in
  investment grade corporate notes and bonds.

|12 |  | November 30,
        2002 Annual Report
|-- |  | ---------------------------------------

---

MANAGEMENT FEE
CALCULATIONS
  The Sextant Bond Income Fund calculates its management fee based on a
comparison
  of the Funds return to the return of Morningstars Long-term
  Bond category. This category consists of mutual fund portfolios that
focus
  on corporate and other investment grade issues with an average duration of
more
  than six years or an effective average maturity of more than ten years.
  The Funds 9.02% 12-month return handsomely exceeded that of the index
  (4.84%) on November 30, 2002. Therefore, the basic 0.60% management fee was
  increased by the maximum amount of 0.20% to 0.80% for the month of December
  2002 because the Fund outperformed its benchmark index by more than 2%.

COMPARISON TO
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 transaction and other 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 at
  its inception, compared to a similar amount invested in The Salomon Brothers
  Broad Investment-Grade Bond Index. The graph shows that the investment at the
  beginning of October 1993 would have risen to $17,715 in the Fund and $19,513
  in the Index. The September 1995 changes in this Funds investment policy

  limit the usefulness of this comparison. The returns shown do not reflect the
  deduction of income taxes that an investor could pay on income received or the

  sale of profitable investments.



Sextant Bond Income Fund vs. Salomon Broad Investment Grade

  Bond Index (unaudited)

(graph omitted)



|November 30, 2002
      Annual Report |  | 13
|------------------------------------- |  | --

---

|INVESTMENTS |  | SEXTANT
GROWTH
        FUND(graphic omitted)
|----------- |  | --------------------------------------------

|Issue                               | Number of Shares | Cost                    | Market Value
|----------------------------------- | ---------------- | ----------------------- | ------------
|                                    |                  | As of November 30, 2002
|Common Stocks (90.4%)               |                  |                         |             
|                                    |                  |                         |             
|Banking (12%)                       |                  |                         |             
|Convergys*                          | 3,500            | $129,041                | $60,340     
|Frontier Financial                  | 4,000            | 90,207                  | 102,400     
|Washington Mutual                   | 6,750            | 44,124                  | 242,865     
|                                    | SUB-TOTAL        | 263,372                 | 405,605     
|Computers (16.5%)                   |                  |                         |             
|3 Com*                              | 10,000           | 51,891                  | 51,500      
|Adobe Systems                       | 4,800            | 50,490                  | 141,744     
|Apple Computer*                     | 5,500            | 102,348                 | 85,250      
|Intuit*                             | 3,000            | 131,758                 | 161,820     
|Oracle*                             | 8,000            | 28,059                  | 96,969      
|Phoenix Technologies Ltd.*          | 3,062            | 29,148                  | 19,413      
|                                    | SUB-TOTAL        | 393,694                 | 556,687     
|Construction (9.6%)                 |                  |                         |             
|Building Materials Holding*         | 4,000            | 44,171                  | 53,640      
|Lowe's Companies                    | 4,000            | 135,141                 | 166,000     
|Weyerhaeuser                        | 2,000            | 93,867                  | 105,200     
|                                    | SUB-TOTAL        | 273,179                 | 324,840     
|Electronics (3.2%)                  |                  |                         |             
|Advanced Micro Devices*             | 10,000           | 41,708                  | 85,000      
|Agilent Technologies*               | 1,200            | 57,828                  | 23,292      
|                                    | SUB-TOTAL        | 99,536                  | 108,292     
|Hotels & Motels (2%)                |                  |                         |             
|Westcoast Hospitality*              | 15,000           | 111,771                 | 80,925      
|Investments (9.5%)                  |                  |                         |             
|Neuberger Berman                    | 2,500            | 109,920                 | 84,525      
|Schwab (Charles)                    | 20,415           | 9,117                   | 235,181     
|                                    | SUB-TOTAL        | 119,037                 | 319,706     
|Machinery (1.2%)                    |                  |                         |             
|Regal-Beloit                        | 2,000            | 52,106                  | 41,420      
|Medical (21.2%)                     |                  |                         |             
|Affymetrix*                         | 2,000            | 26,863                  | 54,200      
|Amgen*                              | 2,640            | 34,598                  | 124,608     
|Barr Laboratories*                  | 2,000            | 159,489                 | 132,060     
|Caremark Rx*                        | 3,000            | 60,125                  | 52,980      
|Ligand Pharmaceuticals*             | 5,000            | 56,430                  | 25,550      
|Lilly (Eli)                         | 800              | 77,567                  | 54,640      
|Pharmaceutical Product Development* | 9,000            | 80,608                  | 269,550     
|                                    | SUB-TOTAL        | 495,680                 | 713,588     
|Metal Ores (1.2%)                   |                  |                         |             
|Phelps Dodge*                       | 1,330            | 76,218                  | 41,788      
|Oil &Gas (2%)                       |                  |                         |             
|Noble*                              | 2,000            | 14,212                  | 67,900      
|Publishing (1.5%)                   |                  |                         |             
|Wiley (John) & Sons, Class A        | 2,400            | 47,112                  | 51,120      
|Retail (3.1%)                       |                  |                         |             
|Bed Bath & Beyond                   | 3,000            | 100,052                 | 104,070     



|14 |  | November 30,
        2002 Annual Report
|-- |  | ---------------------------------------

---

|INVESTMENTS |  | SEXTANT
GROWTH
        FUND(graphic omitted)
|----------- |  | --------------------------------------------

|Issue                                    | Number of Shares | Cost       | Market Value
|---------------------------------------- | ---------------- | ---------- | ------------
|                                         |                  |            |             
|Transportation (7%)                      |                  |            |             
|Airborne Freight                         | 5,000            | 60,308     | 71,650      
|Alaska Air*                              | 3,000            | 53,346     | 63,510      
|Southwest Airlines                       | 6,000            | 90,162     | 99,000      
|                                         | SUB-TOTAL        | 203,816    | 234,160     
|                                         |                  |            |             
|Total Investments (90.4%)                |                  | $2,249,785 | 3,050,101   
|Other Assets (net of liabilities) (9.6%) |                  |            | 322,976     
|Total Net Assets (100%)                  |                  |            | $3,373,077  
|                                         |                  |            |             
|*Non-income producing                    |                  |            |             



|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Trustees and Officers (unaudited)                                  |                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------
|Name and (age)
        Address                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Position(s) held with
      Trust and Length of 
      Time Served | Principal Occupation(s) 
      during past 5 Years                                                                         
|INDEPENDENT TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A. Herbet Ershig (64)
      22 Shorewood Drive
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Independent Trustee
        since 1997                             | President (now retired), Ershigs, Inc.
        (industrial fabrication)                                                    
|Gary A. Goldfogel (44)
      1500 N. State Street
      Bellingham, WA 98226                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Independent Trustee
        since 1995                             | Medical Examiner (pathologist)
        Owner, Avocet Environmental Testing (laboratory)                                    
|John E. Love (70)
      1002 Spokane Street
      Garfield, WA 99130                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Independent Trustee
        since 1987                             | Owner, J.E. Love Co., (agricultural equipment
manufacturer)                                                                
|John S. Moore (71)
      346 Bayside Road
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Independent Trustee
        since 1993                             | Professor (now retired), College of Business and Economics,
      Western Washington University                            
|INTERESTED TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Nicholas F. Kaiser, CFA (56)
      1300 N. State Street
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | President and Trustee
        since 1989                           | President, Saturna Capital Corporation
        President, Saturna Brokerage Services                                       
|OFFICERS WHO ARE NOT TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Phelps S. McIlvaine (49)
      1300 N. State Streeet
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Vice President
        since 1994                                  | Vice President, Saturna Capital Corporation
        Treasurer, Saturna Brokerage Services                                  
|Chrisopher R. Fankhauser (30)
      1300 N. State Street
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Treasurer
        since 2002                                       | Manager of Operations, Saturna Capital Corporation                                                                         
|Ethel D. Beltran (30)
      1300 N. State Street
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Secretary
        since 2001                                       | Corporate Administrator, Saturna Capital Corporation [since
      2000] 
      Administrator, Cytel Corporation [1994-1999]
|Term of Office: Each Trustee serves for the
lifetime
      of the Trust or until he dies, resigns, is removed, or not re-elected by
      the shareowners. Each officer serves a one-year term subject to annual
reappointment
      by the Trustees.
      Mr. Kaiser is an interested person of the Trust by reason of his positions

      with the Trust's adviser and underwriter. Mr. McIlvaine is the primary
manager
      of the Fund's portfolio. Saturna Capital Corporation is the Fund's
advisor,
      and Saturna Brokerage Services, Inc. is the distributor.



|November 30, 2002
      Annual Report |  | 15
|------------------------------------- |  | --

---

|FINANCIAL
HIGHLIGHTS |  | SEXTANT GROWTH

        FUND(graphic
        omitted)
|-------------------- |  | -----------------------------------------------------

|Selected data per share of capital stock outstanding
throughout
      the year |                                                                  |  |                         |         |        
|------------------------------------------------------------------------------ | ---------------------------------------------------------------- |  | ----------------------- | ------- | -------
|                                                                               |                                                                  |  |                         |         |        
|                                                                               |                                                                  |  | Year Ended November 30,
|                                                                               |                                                                  |  | 2002                    | 2001    | 2000   
|Net asset value at beginning of year                                           |                                                                  |  | $11.90                  | $13.16  | $12.68 
|                                                                               | Income from investment operations                                |  |                         |         |        
|                                                                               | Net investment income                                            |  | (0.05)                  | (0.02)  | (0.07) 
|                                                                               | Net gains or losses on securities (both realized and
unrealized) |  | (1.21)                  | (1.24)  | 1.36   
|                                                                               |                                                                  |  |                         |         |        
|Total from investment operations                                               |                                                                  |  | (1.26)                  | (1.26)  | 1.29   
|                                                                               | Less distributions                                               |  |                         |         |        
|                                                                               | Dividends (from net investment income)                           |  | -                       | -       | -      
|                                                                               | Distributions (from capital gains)                               |  | -                       | -       | (0.81) 
|Total distributions                                                            |                                                                  |  | -                       | -       | (0.81) 
|Net asset value at end of period                                               |                                                                  |  | $10.64                  | $11.90  | $13.16 
|Total Return                                                                   |                                                                  |  | (10.51)%                | (9.57)% | 10.16% 
|Ratios / Supplemental Data                                                     |                                                                  |  |                         |         |        
|Net assets ($000), end of year                                                 |                                                                  |  | $3,373                  | $3,792  | $3,862 
|Ratio of expenses to average net assets                                        |                                                                  |  | 1.11%                   | 0.78%   | 1.05%  
|Ratio of net investment income to average net assets                           |                                                                  |  | (0.48)%                 | (0.18)% | (0.51)%
|Portfolio turnover rate                                                        |                                                                  |  | 15%                     | 8%      | 20%    
|                                                                               |                                                                  |  |                         |         |        

|STATEMENT OF ASSETS

        AND LIABILITIES
|--------------------------------------------

|As of November 30, 2002                                  |                                                                        |                                                  |            |           
|-------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------------ | ---------- | ----------
|                                                         |                                                                        |                                                  |            |           
|Assets                                                   |                                                                        |                                                  |            |           
|                                                         | Investments (cost $2,249,785)                                          |                                                  | $3,050,101 |           
|                                                         | Cash                                                                   |                                                  | 326,154    |           
|                                                         | Dividends receivable                                                   |                                                  | 1,248      |           
|                                                         | Insurance reserve premium                                              |                                                  | 1,214      |           
|                                                         |                                                                        | Total Assets                                     |            | 3,378,717 
|Liabilities                                              |                                                                        |                                                  |            |           
|                                                         | Other Liabilities                                                      |                                                  | 5,640      |           
|                                                         |                                                                        | Total Liabilities                                |            | 5,640     
|Net Assets                                               |                                                                        |                                                  |            | $3,373,077
|Fund Shares Outstanding                                  |                                                                        |                                                  |            | 316,933   
|Analysis of Net Assets                                   |                                                                        |                                                  |            |           
|                                                         | Paid in Capital (unlimited shares authorized, without par
      value) |                                                  | $2,633,156 |           
|                                                         | Accumlated net realized loss                                           |                                                  | (60,395)   |           
|                                                         | Unrealized net appreciation on investments                             |                                                  | 800,316    |           
|                                                         |                                                                        | Net Assets applicable to Fund shares outstanding |            | $3,373,077
|Net Asset Value, Offering and Redemption price per
share |                                                                        |                                                  | $10.64    

(The accompanying notes are an integral part

  of these financial statements)

|16 |  | November 30,
        2002 Annual Report
|-- |  | ---------------------------------------

---

|(Graphic
Omitted)SEXTANT GROWTH FUND |  | STATEMENT OF
OPERATIONS
|------------------------------------ |  | -----------------------

|                                                     |                                                       |                                  | For the year ended November 30, 2002
|---------------------------------------------------- | ----------------------------------------------------- | -------------------------------- | ------------------------------------
|Investment income                                    |                                                       |                                  |                                     
|                                                     | Dividend income                                       |                                  | $22,234                             
|                                                     | Miscllaneous income                                   |                                  | 50                                  
|                                                     |                                                       | Gross investment income          |                                     
|Expenses                                             |                                                       |                                  |                                     
|                                                     | Investment adviser and administration fees            |                                  | 28,460                              
|                                                     | Professional fees                                     |                                  | 5,035                               
|                                                     | Custodian fees                                        |                                  | 2,303                               
|                                                     | Filing and registration fees                          |                                  | 1,766                               
|                                                     | Other expenses                                        |                                  | 1,757                               
|                                                     | Insurance                                             |                                  | 1,548                               
|                                                     | Printing and postage                                  |                                  | 1,109                               
|                                                     | Total gross expenses                                  |                                  | 41,978                              
|                                                     | Less custodian fees waived                            |                                  | (2,303)                             
|                                                     | Net expenses                                          |                                  |                                     
|                                                     |                                                       | Net investment loss              |                                     
|Net realized loss on investments                     |                                                       |                                  |                                     
|                                                     | Proceeds from sales                                   |                                  | 479,632                             
|                                                     | Less cost of securities sold based on identified cost |                                  | 490,309                             
|                                                     |                                                       | Realized net loss                |                                     
|Unrealized gain on investments                       |                                                       |                                  |                                     
|                                                     | End of year                                           |                                  | 800,316                             
|                                                     | Beginning of year                                     |                                  | 1,172,350                           
|                                                     | Decrease in unrealized gain for the year              |                                  |                                     
|                                                     |                                                       | Net realized and unrealized loss |                                     
|Net decrease in net assets resulting from
operations |                                                       |                                  | $(400,102)                          

|STATEMENT
      OF CHANGES IN NET ASSETS |  | 
|---------------------------------------- |  | 

|                                                        |                                                      | Year ended    | Year ended   
|------------------------------------------------------- | ---------------------------------------------------- | ------------- | -------------
|                                                        |                                                      | Nov. 30, 2002 | Nov. 30, 2001
|INCREASE (DECREASE) IN NET ASSETS                       |                                                      |               |              
|From Operations                                         |                                                      |               |              
|                                                        | Net investment loss                                  | $(17,391)     | $(6,671)     
|                                                        | Net realized loss on investments                     | (10,677)      | (49,719)     
|                                                        | Net decrease in unealized appreciation               | (372,034)     | (304,455)    
|                                                        | Net decrease in net assets                           | (400,102)     | (360,845)    
|                                                        |                                                      |               |              
|Dividends to shareowners from                           |                                                      |               |              
|                                                        | Net investment income                                | -             | -            
|                                                        |                                                      |               |              
|From fund share transactions                            |                                                      |               |              
|                                                        | Proceeds from sales of shares                        | 366,963       | 603,793      
|                                                        | Value of shares issued in reinvestment of dividends  | -             | -            
|                                                        |                                                      | 366,963       | 603,793      
|                                                        | Cost of shares redeemed                              | (385,297)     | (313,737)    
|                                                        | Net increase (decrease) in net assets                | (18,334)      | 290,056      
|Total increase (decrease) in net assets                 |                                                      | $(418,436)    | $(70,789)    
|                                                        |                                                      |               |              
|NET ASSETS                                              |                                                      |               |              
|                                                        | Beginning of year                                    | 3,791,513     | 3,862,302    
|                                                        | End of year                                          | $3,373,077    | $3,791,513   
|                                                        |                                                      |               |              
|Shares of the fund sold and redeemed                    |                                                      |               |              
|                                                        | Number of shares sold                                | 32,585        | 50,805       
|                                                        | Number of shares issued in reinvestment of dividends | -             | -            
|                                                        |                                                      | 32,585        | 50,805       
|                                                        | Number of shares redeemed                            | (34,371)      | (25,630)     
|Net increase (decrease) in number of shares outstanding |                                                      | (1,786)       | 25,175       

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

|November 30, 2002
      Annual Report |  | 17
|------------------------------------- |  | --

---

|DISCUSSION
      OF SEXTANT GROWTH FUND PERFORMANCE | (unaudited)
|--------------------------------------------------- | -----------

FISCAL YEAR 2002
  For the fiscal year ending November 30, 2002, the Sextant Growth Fund fell
-10.5%.
  While any decline is unfortunate, this result again was significantly better
  than the market averages as well as most growth funds. The NASDAQ Composite
  Index declined -22.2%, and the broader S&P 500 Index lost -16.5%. For this

  latest fiscal year, the Fund ranked in top 13% of the 718 funds in its
Morningstars
  peer Mid-cap Growth category. For the last five years, the Fund has provided
  a 4.59% average annualized total return and ranks in the top 20% of 334 funds
  in its Morningstar peer category. At November 30, 2002, the Fund held
Morningstars
  4-star rating (judged against 499 Mid-cap Growth funds). 
  The volatility, risks and returns of the stock market continue. The weak
performance
  of most market segments in 2000, 2001 and again in 2002 mean that investor
expectations
  have become very reasonable, removing an impediment to future market
returns.

FACTORS AFFECTING PAST
  PERFORMANCE
  The economy in 2002 limped along, while the media and politicians focused on
  corporate accounting scandals. Time magazine summed up by selecting three
whistle-blowers
  as its man of the the year. New laws aimed at stopping terrorists
  and corporate malfeasance added to everyones hassles. Travel-related
businesses
  took heavy hits.
  The Fund seeks long-term growth through investment in common stocks of U.S.
  companies. It generally follows a value investment approach, favoring
companies
  with good fundamentals and relatively low price/earnings ratios. This year's
  market decline accelerated that of the last two years. Losses in
technology-related
  businesses spread to utilities, finance and transportation. Our technology
stocks
  suffered, but our mid-sized and smaller companies improved the overall result.

LOOKING FORWARD
  For the fiscal year ending November 30, 2002, the Sextant Growth Fund fell
-10.5%.
  While any decline is unfortunate, this result again was significantly better
  than the market averages as well as most growth funds. The NASDAQ Composite
  Index declined -22.2%, and the broader S&P 500 Index lost -16.5%. For this

  latest fiscal year, the Fund ranked in top 13% of the 718 funds in its
Morningstars
  peer Mid-cap Growth category. For the last five years, the Fund has provided
  a 4.59% average annualized total return and ranks in the top 20% of 334 funds
  in its Morningstar peer category. At November 30, 2002, the Fund held
Morningstars
  4-star rating (judged against 499 Mid-cap Growth funds). 
  The volatility, risks and returns of the stock market continue. The weak
performance
  of most market segments in 2000, 2001 and again in 2002 mean that investor
expectations
  have become very reasonable, removing an impediment to future market
returns.

MANAGEMENT FEE
CALCULATIONS
  The Sextant Growth Fund calculates part of its management fee based on a
comparison
  of the Funds return to the average return in Morningstar's
Domestic
  Growth category. At November 30, 2002, the one-year return for this
category
  average was -15.32%. Because the Fund's 12-month return outperformed this
average
  by more than 4% at November 30, 2002, the adviser earned the maximum bonus
performance
  fee for the month of December 2002.



|18 |  | November 30,
        2002 Annual Report
|-- |  | ---------------------------------------

---

Largely because of the performance bonus, the Fund's total
expense
  ratio increased to 1.11% from 0.78% the prior year. Like all mutual funds,
Sextant
  Growth Funds annual performance results are quoted after deduction of
  operating expenses.

COMPARISON TO
INDEX
  The line graph compares Sextant Growth Fund's performance to that of a
broad-based
  stock market index, the Standard & Poor's 500 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
  transaction and other costs, (4) stand ready to buy and sell its securities
  to shareholders on a daily basis, and (5) provide a wide range of services.
  The graph below compares $10,000 invested in the Fund at November 30, 1992
(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
$22,845
  and $26,277 in the Index. The 1995 changes in this Funds investment
objectives
  and policies limit the usefulness of this comparison. The returns shown do not

  reflect the deduction of income taxes that an investor could pay on income
received
  or the sale of profitable investments.



Sextant Growth Fund vs. S&P 500 Index
(unaudited)

(graph omitted)



|November
      30, 2002 Annual Report |  | 19
|------------------------------------- |  | --

---

|INVESTMENTS |  | SEXTANT
INTERNATIONAL
        FUND(Graphic
        Omitted)
|----------- |  | -----------------------------------------------------------

|Issue                         | Number of Shares | Cost    | Market Value            | Country    
|----------------------------- | ---------------- | ------- | ----------------------- | -----------
|                              |                  |         | As of November 30, 2002
|Common Stocks (81.2%)         |                  |         |                         |            
|                              |                  |         |                         |            
|Aircraft (2.2%)               |                  |         |                         |            
|Embraer Aircraft ADR          | 1,713            | $38,169 | $25,044                 | Brazil     
|                              |                  |         |                         |            
|Banking and Financial (10.8%) |                  |         |                         |            
|Aegon NV                      | 2,075            | 19,736  | 33,117                  | Netherlands
|AXA ADS                       | 1,000            | 31,165  | 15,830                  | France     
|Banco Bilbao Vizcaya ADS      | 1,800            | 7,702   | 18,468                  | Spain      
|ING Groep ADS                 | 1,400            | 36,134  | 26,334                  | Netherlands
|Toronto-Dominion Bank         | 1,400            | 18,159  | 30,086                  | Canada     
|                              | SUB-TOTAL        | 112,896 | 123,835                 |            
|Building Materials (4.2%)     |                  |         |                         |            
|CRH plc ADR                   | 2,000            | 23,075  | 28,620                  | Ireland    
|Hanson plc ADR                | 800              | 24,574  | 20,152                  | UK         
|                              | SUB-TOTAL        | 47,649  | 48,772                  |            
|Computers (11.4%)             |                  |         |                         |            
|Business Objects ADS*         | 6,000            | 19,570  | 119,940                 | France     
|Dassault Systems ADR          | 400              | 13,875  | 11,480                  | France     
|                              | SUB-TOTAL        | 33,445  | 131,420                 |            
|Consumer Products (4.4%)      |                  |         |                         |            
|Coca-Cola Femsa ADS           | 1,500            | 9,750   | 33,135                  | Mexico     
|Gucci Group NV                | 200              | 10,925  | 18,020                  | Italy      
|                              | SUB-TOTAL        | 20,675  | 51,155                  |            
|Electronics (2.3%)            |                  |         |                         |            
|Epcos AG ADS*                 | 500              | 34,206  | 8,650                   | Germany    
|Sony ADR                      | 400              | 32,236  | 17,740                  | Japan      
|                              | SUB-TOTAL        | 66,442  | 26,390                  |            
|Hotels (1.7%)                 |                  |         |                         |            
|Fairmont Hotels & Resorts     | 800              | 17,146  | 19,680                  | Canada     
|Medical-Drugs (3.8%)          |                  |         |                         |            
|Aventis ADS                   | 508              | 15,859  | 28,021                  | France     
|Glaxo Wellcome plc ADR        | 400              | 9,800   | 15,200                  | UK         
|                              | SUB-TOTAL        | 25,659  | 43,221                  |            
|Metals & Mining (5.3%)        |                  |         |                         |            
|Potash Corp. of Saskatchewan  | 300              | 21,164  | 19,980                  | Canada     
|Rio Tinto plc ADS             | 500              | 31,175  | 40,715                  | UK         
|                              | SUB-TOTAL        | 67,509  | 72,265                  |            
|Oil & Gas Production (5.1%)   |                  |         |                         |            
|Petroleum Geo-Services ADS*   | 1,000            | 10,979  | 410                     | Norway     
|Repsol-YPF ADR                | 2,000            | 43,592  | 25,040                  | Spain      
|Total Fina Elf ADR            | 500              | 21,864  | 33,375                  | France     
|                              | SUB-TOTAL        | 76,435  | 58,825                  |            

|20 |  | November
        30, 2002 Annual Report
|-- |  | ---------------------------------------

---

|(Graphic
      Omitted)SEXTANT
      INTERNATIONAL FUND |  | INVESTMENTS
|------------------------------------------------------- |  | -----------

|Issue                                     | Number of Shares | Cost     | Market Value | Country  
|----------------------------------------- | ---------------- | -------- | ------------ | ---------
|                                          |                  |          |              |          
|Paper Products (5.1%)                     |                  |          |              |          
|Metso ADS*                                | 2,100            | 22,802   | 21,630       | Finland  
|UPM-Kymmene Oyj ADS                       | 1,000            | 34,399   | 36,500       | Finland  
|                                          | SUB-TOTAL        | 57,201   | 58,130       |          
|Photographic Equipment (4.5%)             |                  |          |              |          
|Canon, Inc. ADR                           | 1,000            | 23,426   | 38,450       | Japan    
|Fuji Photo Film ADR                       | 400              | 10,050   | 12,996       | Japan    
|                                          | SUB-TOTAL        | 33,476   | 51,446       |          
|Real Estate (2.6%)                        |                  |          |              |          
|Intrawest                                 | 2,400            | 41,342   | 29,976       | Canada   
|Telecommunications (8.3%)                 |                  |          |              |          
|America Movil ADR                         | 2,000            | 29,725   | 30,300       | Mexico   
|BCE                                       | 900              | 15,830   | 16,488       | Canada   
|British Sky Broadcasting ADS*             | 300              | 11,063   | 18,600       | UK       
|PT Indosat ADR                            | 1,000            | 20,952   | 9,120        | Indonesia
|Tele Norte Leste Participacoes ADS        | 335              | 6,933    | 2,456        | Brazil   
|Telefonica ADS*                           | 564              | 12,058   | 17,044       | Spain    
|Telesp Celular Participacoes ADS          | 500              | 24,895   | 1,370        | Brazil   
|                                          | SUB-TOTAL        | 121,456  | 95,378       |          
|Transportation (3.8%)                     |                  |          |              |          
|Canadian Pacific Railway Ltd.             | 600              | 7,985    | 12,210       | Canada   
|Desc SA ADR                               | 2,700            | 42,981   | 18,360       | Mexico   
|Lan Chile ADS                             | 2,500            | 18,845   | 13,475       | Chile    
|                                          | SUB-TOTAL        | 69,811   | 44,045       |          
|Utilities-Electric (5.5%)                 |                  |          |              |          
|Enel ADS                                  | 800              | 35,372   | 20,160       | Italy    
|Enersis ADS*                              | 1,103            | 4,798    | 15,056       | Chile    
|Fording                                   | 1,000            | 15,170   | 20,600       | Canada   
|Korea Electric Power ADS                  | 2,000            | 31,961   | 20,140       | Korea    
|                                          | SUB-TOTAL        | 92,009   | 57,940       |          
|Utilities-Gas (.2%)                       |                  |          |              |          
|Transport de Gas del Sur ADR*             | 1,500            | 18,807   | 2,370        | Argentina
|                                          |                  |          |              |          
|Total Investments (81.2%)                 |                  | $940,127 | 934,180      |          
|Other Assets (net of liabilities) (18.8%) |                  |          | 216,189      |          
|Total Net Assets (100%)                   |                  |          | $1,150,369   |          
|                                          |                  |          |              |          
|* Non-income producing                    |                  |          |              |          





|November
      30, 2002 Annual Report |  | 21
|------------------------------------- |  | --

---

FINANCIAL HIGHLIGHTS
      
      SEXTANT
INTERNATIONAL
          FUND(graphic
          omitted)  Selected data per share of capital stock outstanding
            throughout each yearFor Year Ended November 30,2002
          2001
          2000
          1999
          1998Net asset value at beginning of year
          
          $7.24
          $8.52
          $8.32
          $6.81
          $6.61Income from investment operationsNet investment income
          0.02
          0.04
          0.43
          0.13
          0.04Net gains or losses on securities (both realized and
            unrealized)
          (1.16)
          (1.30)
          0.20
          1.57
          0.20Total from investment operations
          
          (1.14)
          (1.26)
          0.63
          1.70
          0.24Less distributionsDividends (from net investment income)
          (0.03)
          (0.02)
          (0.43)
          (0.12)
          (0.04)Distributions (from capital gains)
          -
          -
          -
          (0.07)
          -Total distributions
          
          (0.03)
          (0.02)
          (0.43)
          (0.19)
          (0.04)Net asset value at end of year
          
          $6.07
          $7.24
          $8.52
          $8.32
          $6.81Total return
          
          (15.80)%
          (14.80)%
          7.62%
          24.90%
          3.57%Ratios/supplemental dataNet assets ($000), end of period
          
          $1,150
          $1,445
          $1,736
          $1,162
          $881Ratio of expenses to average net assets
          
          1.17%
          1.17%
          1.20%
          0.72%
          1.16%Ratio of net investment income to average net
assets
          
          0.20%
          0.34%
          4.74%
          1.74%
          0.54%Portfolio turnover rate
          
          4%
          6%
          11%
          17%
          18%  STATEMENT OF
              ASSETS AND LIABILITIES As of November 30, 2002AssetsInvestments (cost $940,127)
          
          $934,180Cash
          
          219,967Dividends receivable
          
          247Total Assets
          
          1,154,394LiabilitiesOther Liabilities
          
          4,025Total Liabilities
          
          4,025Net Assets
          
          
          
          1,150,369Fund shares outstanding
          
          
          
          189,669Analysis of Net AssetsPaid in Capital (unlimited shares authorized, without
            par value)
          
          1,301,449Accumlated net realized loss
          
          (145,133)Unrealized net appreciation on investments
          
          (5,947)Net Assets applicable to Fund shares
outstanding
          
          $1,150,369Net Asset Value, Offering and Redemption price per
            share
          
          
          $6.07 (The accompanying notes are an
integral
        part of these financial statements) 22
          
          November
              30, 2002 Annual Report  (graphic
            omitted)SEXTANT
            INTERNATIONAL FUND
          
          STATEMENT
              OF OPERATIONS For the year ended November 30, 2002Investment incomeDividend income (net foreign taxes of $3,180)
          
          $17,308Gross investment income
          
          17,308ExpensesInvestment adviser and administration fee
          
          9,444Custodian fees
          
          2,335Filing and registration fees
          
          2,166Professional fees
          
          2,011Other expenses
          
          1,080Printing and postage
          
          675Total gross expenses
          
          17,074Less custodian fees waived
          
          (2,335)Net expenses
          
          
          14,739Net investment income
          
          2,569Net realized loss on investmentsProceeds from sales
          
          37,150Less cost of securities sold (based on identified
cost)
          
          107,856Realized net loss
          
          (70,706)Unrealized loss on investmentsEnd of year
          
          (5,947)Beginning of year
          
          135,270Decrease in unrealized gain for the
year
          
          
          (141,217)Net realized and unrealized loss
          
          (211,923)Net decrease in net assets resulting from
operations
          
          
          $(209,354)  STATEMENT OF CHANGES IN NET
            ASSETS Year ended
          Year endedNov. 30, 2001
          Nov. 30, 2001INCREASE (DECREASE) IN NET ASSETSFrom OperationsNet investment income
          $2,569
          $5,248Net realized loss on investments
          (70,706)
          (72,856)Net decrease in unealized appreciation
          (141,217)
          (189,831)Net decrease in net assets
          (209,354)
          (257,439)Dividends to shareowners fromNet investment income
          (4,909)
          (3,779)From fund share transactionsProceeds from sales of shares
          58,704
          120,139Value of shares issued in reinvestment of dividends
          4,897
          3,75263,601
          123,891Cost of shares redeemed
          (143,789)
          (154,296)Net decrease in net assets from share transactions
          (80,188)
          (30,405)Total decrease in net assets
          
          $(294,451)
          $(291,623)NET ASSETSBeginning of year
          1,444,820
          1,736,443End of year
          $1,150,369
          $1,444,820Shares of the fund sold and redeemedNumber of shares sold
          9,019
          14,929Number of shares issued in reinvestment of dividends
          807
          5189,826
          15,447Number of shares redeemed
          (19,618)
          (19,782)Net decrease in number of shares outstanding
          
          (9,792)
          (4,335) (The accompanying notes are an integral part of
these
          financial statements)
        November
              30, 2002 Annual
Report
            
            23DISCUSSION
              OF SEXTANT INTERNATIONAL FUND PERFORMANCE
            (unaudited)FISCAL YEAR
2002
          For the fiscal year ended November 30, 2002, the Sextant International

          Fund fell -15.80%. While any decline is unfortunate, this result again

          was better than many domestic market averages. The comparable AMEX
International
          Index declined -15.2%. For this latest fiscal year, the Fund ranked
          in the 79th percentile of the 868 funds in Morningstars peer
Foreign
          Stock category. For the last five years, the Fund has provided an
-0.18%
          annualized total return. At November 30, 2002, the Fund held
Morningstars
          3-star rating (judged against 646 Foreign Stock funds).
        FACTORS
AFFECTING
          PAST PERFORMANCE
          The economy in 2002 limped along, while the media and politicians
focused
          on corporate accounting scandals. New laws aimed at stopping
terrorists
          and corporate malfeasance added to everyones hassles. Foreign
          investors worried about having their U.S. assets frozen withdrew cash
          from domestic markets, and the U.S. dollar weakened markedly.
          Investing in foreign securities includes risks not present in domestic

          securities. Unlike most years, foreign stocks were generally less
volatile
          than domestic issues. Our portfolio was more heavily invested in
Europe
          and Canada than Asia, which helped results. Commodity prices began to
          turn around, but their low levels brought little relief to our
cyclical
          and resource-based issues. Financials suffered in light of huge
insurance
          claims, but higher premiums should bring recovery.
        LOOKING
FORWARD
          The Sextant International Fund is broadly invested in growing
companies
          headquartered outside the United States. Our focus on value investing
          continued to serve us in 2002, when technology and other
growth
          stocks tumbled. 
          Stocks ultimately reflect their underlying business values. After
their
          weak performances for three years, we feel many stocks are quite
attractively
          priced. Growth of the U.S. economy is expected at 3% in 2003, as low
          interest rates boost consumer confidence, spending and investment.
Foreign
          economies normally recover as the US market buys more foreign goods
          and services. We expect that our portfolio securities will continue
          to show growth and the Fund will improve its performance.  24
          
          November
              30, 2002 Annual Report MANAGEMENT FEE
          CALCULATIONSThe Sextant International Fund calculates part of its
management
          fee based on a comparison of the Funds return to the average
return
          of the Morningstar fund category Foreign Stock. At
November
          30, 2002, the one-year return for this category average was -12.31%.
          Because the Fund's 12-month return underperformed this average by more

          than 2% at November 30, 2002, the adviser incuured at 0.20%
annual-rate
          penalty performance fee for the month of December 2002. The Fund's
assets
          were lower during the year, and the total expense ratio increased
slightly
          to 1.20% from 1.17% the prior year. Expense ratio stayed the same from

          2001 to 2002.
        COMPARISON TO
          INDEX
          Comparison of any fund to an index must be made bearing in mind that
          the Index is unmanaged, and expense-free. The graph below compares
$10,000
          invested in the Fund at its inception, compared to a similar amount
          invested in the AMEX International Index. This capitalization-weighted

          index averages 50 American Depository Receipts (ADRs) of large
worldwide
          companies, and reflects the types of securities in which Sextant
International
          Fund invests. The graph shows that a $10,000 investment made on
September
          1995 would have risen to $13,376 in the Fund and $10,404 in the Index.

          The returns shown do not reflect the deduction of income taxes that
          an investor could pay on income received or the sale of profitable
investments.
        
        Sextant International Fund vs. AMEX International Index
(unaudited)
        (graph omitted)
        
        
        November 30,

              2002 Annual Report
            
            25
    NOTES
                TO FINANCIAL STATEMENTSNote 1 -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.
                Five portfolio series have been created to date: Sextant
Short-Term
                Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund, and
                Sextant International Fund (the "Funds"), and Idaho
                Tax-Exempt Fund, distributed through a separate prospectus and
                the results of which are contained in a separate report.Note 2 -Significant
                Accounting PoliciesThe following is a summary of the significant
accounting
                policies followed by the Funds.Investments:Securities traded on a national exchange or the national

                over-the-counter market system are valued at the last sale price

                or, in the absence of any sale on that date, the closing bid
price.
                Other securities traded in the over-the-counter market are
valued
                at the last bid price. Fixed-income securities for which there
                are no publicly available market quotations are valued using a
                matrix based on maturity, quality, yield and similar factors,
                which are compared periodically to multiple dealer bids 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. Interest income is increased by accretion only

                for bonds underwritten as original issue discounts. Market
discounts
                are recorded as realized gains upon disposition. Cash dividends
                from equity securities are recorded as income on the ex-dividend

                date.
              Expenses incurred by the Trust on behalf of the
                Funds (e.g., professional fees) are allocated to the Funds on
                the basis of relative daily average net assets. The Adviser has
                agreed to certain limits on expenses, as described below.Income taxes:The Funds have elected to be taxed as regulated
investment
                companies under the Internal Revenue Code and distribute
substantially
                all of their taxable net income and realized net gains on
investments.
                Thus, no provision for Federal income taxes is required.
            Dividends and distributions to
shareowners:Dividends and distributions to shareowners are recorded
                on the ex-dividend date. For the Sextant Short-Term Bond Fund
                and Sextant Bond Income Fund, dividends are paid daily and
distributed
                on the last business day of each month. For the Sextant Growth
                Fund and Sextant International Fund, dividends are payable at
                the end of each November. Shareowners electing to reinvest
dividends
                and distributions purchase additional shares at the net asset
                value on the payable date.Use of Estimates:The preparation of financial statements in conformity
                with accounting principles generally accepted in the United
States
                of America requires management to make estimates and assumptions

                that affect the reported amounts of assets and liabilities at
                the date of the financial statements. Actual results could
differ
                from those estimates.Note 3 -Transactions
                with Affiliated PersonsUnder a contract approved by shareowners on September

                28, 1995, Saturna Capital Corporation provides investment
advisory
                services and certain other administrative and distribution
services
                to conduct Trust business. Each of the Funds pays the Adviser
                a base Investment Advisory and Administrative Services Fee of
                .60% of average net assets per annum, payable monthly. The base
                Advisory Fee is subject to adjustment up or down depending on
                the investment performance of the Fund relative to a specified
                index. No performance adjustment is applicable during the first
                year any Agreement is in place. The Adviser has voluntarily
undertaken
                to limit expenses of Sextant Bond Income Fund and Sextant
Short-Term
                Bond Fund to 0.60% through March 31, 2003 and waives its
investment
                advisory and administrative fee as to either Fund completely so
                long as assets of that Fund are less than $2 million.For the year ended November 30, 2002, Sextant Bond Income Fund
                and Sextant Growth Fund incurred advisory expenses of $11,975
                and $28,460, respectively. Sextant International Fund incurred
                advisory expenses of $8,807 and Sextant Short-Term Bond Fund
incurred
                advisory expenses of $13,566.In accordance with the expense waiver noted above,

                for the year ended November 30, 2002, Saturna Capital waived
$2,517
                of the Sextant Short-Term Bond Fund advisory fee and $6,808 of
                that of Sextant Bond Income Fund.In accordance with the Funds' custodian agreements

                with National City Bank, for the year ended November 30, 2002,
                custodian fees for Bond Income, Short-Term Bond, Growth, and
International,
                were $789, $2,065, $2,303, and $2,335, respectively. The
custodian
                waived its fees for earnings credits.
        
        26
            
            November
                30, 2001 Annual ReportOne trustee, who also serves as the president of
                the Trust, is a director and president of the Adviser. The four
                unaffiliated trustees receive $100 per Board or committee
meeting
                attended. On November 30, 2002, the turstees, officers and their

                immediate families as a group owned 19.5%, 30.2%, 13.7% and
34.5%
                of the outstanding shares of Bond Income, Short-Term Bond,
Growth
                and International, respectively.The Trust acts as a distributor of its own shares,

                except in those states in which Saturna Brokerage Services, Inc.

                (a subsidiary of Saturna Capital Corporation) is itself
registered
                as a broker-dealer and acts as distributor without compensation.Saturna Brokerage Services is the primary
stockbroker
                used to effect portfolio transactions for Sextant Growth Fund
                and Sextant International Fund, and was paid $2,469 and $378,
                respectively in commissions at discount rates during the year
                ended November 30, 2002.Note 4 -Federal Income

                TaxesAt November 30, 2002, Bond Income had capital loss
                carryforwards of $48,951, of which $15,110 expires in 2003,
$11,717
                expires in 2005 and $5,730 expires in 2007, $2,141 expires in
                2009 and $14,253 expires in 2010; Short-Term Bond had capital
                loss carryforwards of $35,720 of which $5,558 expires in 2004,
                $1,405 expires in 2005, $4,467 expires in 2007, $9,191 expires
                in 2008, and $15,099 expires in 2009; Growth Fund had capital
                loss carryforwards of $60,396 of which $49,718 expires in 2009
                and $10,677 expires in 2010; and International had capital loss
                carryforwards of $145,133, of which $1,570 expires in 2008,
$72,857
                expires in 2009, and $70,706 expires in 2010, subject to
regulation.
                Prior to their expiration, such loss carryforwards may be used
                to offset future net capital gains realized for federal income
                tax purposes.Note 5 -InvestmentsAt November 30, 2002, the net unrealized gain (loss)
                on investments for Bond Income, Short-Term Bond, Growth and
International
                were $123,383, $63,527, $800,316, and $(5,947), which consists
                of unrealized gains of $125,085, $71,409, $1,120,510, and
$262,582,
                and unrealized losses of $1,702, $7,882, $320,194, and $268,529,

                respectively.During the year ended November 30, 2002, Bond
Income
                purchased $547,480 of securities and sold $549,603 of
securities.
                Comparable figures for Short-Term Bond are $583,881 purchased
                $618,782 sold; for Growth $582,426 and $479,632; and for
International,
                $65,197 and $37,150.
            (grahic omitted)
                
                
                PRIVACY STATEMENT (unaudited)
                At Saturna Capital, we understand the
importance
                  of maintaining the privacy of your financial information. To
                  that end, we want to insure that we protect the
confidentiality
                  of any personal information you share with us.
                  We collect personal information about you from information we
                  receive from you on applications and other forms and from
transactions
                  or trades placed with us. Please be assured that except to
administer
                  a transaction with an affiliated third party upon your
request,
                  we do not disclose any personal information about our
customers,
                  or our former customers, to anyone, except as may be required
                  by law. We maintain our own technology resources to minimize
                  the use of outside service providers.
                  Additionally, Saturna Capital restricts access to personal
information
                  about you to those employees who need to know that information

                  to provide products or services to you. We maintain physical,
                  electronic, and procedural safeguards that comply with federal

                  standards to guard your personal information. If you have
further
                  questions or concerns about the security or privacy of the
information
                  we receive from you, please call us at 1-888/732-6262.November 30,

              2002 Annual Report
            
            27Web: http://www.saturna.com
                  E-mail: sextant@saturna.com
                
                
                (logo)
                Saturna
CapitalMutual Funds
                1300 N. State Street
                    Bellingham WA 98225-4370
                  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 shareoweners 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.
              (graphic
omitted)
                        
                        
                        SEXTANT
                          Mutual Funds
                        
                        
                        
                        SHORT-TERM
                          BOND
                        BOND
INCOME
                        GROWTH
                        INTERNATIONAL
                        
                        
                        ANNUAL
                          REPORTNovember 30, 2002