January 15, 1996
Fellow Shareholders:

This has been an important year for the Funds.  As earlier  reported,  following
the  special  shareholders  meeting  on  September  28, the  Sextant  Funds were
launched,  new  trustees  were elected and other  significant  steps were taken.
These proposals were contained in the proxy statement we forwarded to you at the
end of August.

The following is an official report of the results.  For investment  results and
other  information  about the Funds,  we urge you to read the  remainder  of the
Report.

As always,  we appreciate your  participation in the Funds and look forward to a
long and mutually rewarding association with you.

ATTENDANCE
                           Shares entitled
     Name of Series           to vote                  Shares present
     Idaho                1,032,867.080                602,773.681
     Washington             190,004.237                120,153.290
     Northwest              131,055.262                86,794.841
                            -----------                ----------
     Total Shares         1,353,926.579                809,721.812

NEW BOARD OF TRUSTEES
The shareholders  also elected a new slate of Trustees.  Continuing are: John
Love,  John  Moore  and  Nicholas  Kaiser.  Joining  them are  newly  elected
Trustees Gary Goldfogel and James D. Winship.

                                For             Withhold
     Gary Goldfogel         527,875.466        13,842.597
     Nicholas F. Kaiser     536,614.069         5,103.994
     John Love              538,530.426         3,187.637
     John S. Moore          534,302.917         7,415.146
     James D. Winship       540,673.148         1,044.915

NORTHWEST GROWTH FUND BECOMES SEXTANT GROWTH FUND

Shareholders voted to amend the Northwest's  investment objective from long-term
capital growth through investment primarily in Northwest securities to long term
growth  from  investment  in equity and  equity-type  securities  whether in the
region or not, and to change the name of the series to Sextant Growth Fund.

              Number         Per Cent
     For      84,989.275      97.92%
     Against  1,805.566       2.08%

Shareholders  voted to  replace  Northwest  Growth  Fund's  existing  Investment
Advisory and Administrative Services Agreement and Transfer Agent Agreement with
a single Investment Advisory and Administrative Services Agreement.
              Number         Per Cent
              ------         --------
     For      86,794.841      100%
     Against        0            0%

WASHINGTON TAX-EXEMPT FUND BECOMES SEXTANT BOND INCOME FUND

 Shareholders  voted to amend the Fund's  investment  objective and  fundamental
 policies  from pursuit of income exempt from federal and any  Washington  State
 income  taxes to high  current  income  through the  purchase of bonds that may
 produce  taxable  income,  and to change the name of the series to Sextant Bond
 Income Fund
              Number         Per Cent
     For      115,009.485     95.72
     Against  5,143.805       4.28%

Shareholders  voted to  replace  the Fund's  existing  Investment  Advisory  and
Administrative  Services  Agreement and Transfer  Agent  Agreement with a single
Investment Advisory and Administrative Services Agreement.
              Number         Per Cent
     For      115,009.485     95.72
     Against  5,143.805       4.28%

IDAHO TAX-EXEMPT FUND REMAINED UNCHANGED.

This very  successful  Fund continues with no change in policy or its investment
contract.


<PAGE>

Sextant Mutual Funds
Graphic of Sextant omitted
NOVEMBER 30, 1995
FELLOW SHAREOWNERS::

Where  do we go from  here?  Our  last  letter  was very  optimistic  about  the
potential  returns  from  financial  assets for the  remainder  of the  century.
Throughout fiscal 1995 we were correct and our positive outlook remains

As shown in the  financial  statements  in this annual  report,  the two Sextant
Funds that were in  existence  for all of the  fiscal  year  ended  November  30
sported strong returns:

                                       Nov. 30, 1994
          Fund                         to Nov. 30, 1995
          ----                         ----------------
          Sextant Growth                 +30.76%
          Sextant Bond Income            +17.69%

Sextant International and Sextant Short-Term Bond Funds both began operations on
September 28. As detailed  later in this report,  both Funds have  insignificant
figures to report for the short period of their existence.

Why do we remain  optimistic?  We continue to see slow growth and flat  interest
rates. Politically, the climate is still favorable though not as bullish as last
fall:  lower  taxes and  higher  speed  limits.  The  debate  has  shifted  from
increasing government expenditures to whether, where and how much to cut.

Technological  change  is  exploding,  lowering  costs  and  greatly  increasing
productivity.  We believe that we are entering a new industrial  age,  driven by
the  information  technologies  in  which  America  excels.  As such a  scenario
develops,  we should be the  beneficiaries of an important  long-term trend from
which American investors are uniquely positioned to benefit. Watch this space.

Internationalization  of business  both spurs and is spurred by the  information
revolution that daily seems to pick up speed.  We believe that investors  should
look  overseas  for at least a portion  of their  portfolio,  as it is no longer
possible to insulate oneself from events abroad. Similarly, a successful company
no longer can operate in one national market.  We created Sextant  International
Fund to focus on non-U.S. equity opportunities

The Sextant bond funds will remain conservative in approach. There is a role for
bonds in most portfolios,  as an anchor for a diversified  portfolio.  Both Bond
Income  Fund and  Short-Term  Bond  Fund  will  continue  their  quality  focus.
Short-term  Bond Fund remains a great alternate or complement to a money fund as
a place for temporary cash reserves.

We  employ  no   leverage,   purchase  no   derivatives   or  employ  any  other
risk-enhancing techniques.

The Sextant Funds are designed to address your investment  needs. All employ our
unique "fulcrum" fee structure that stresses low cost to you and only rewards us
for  superior  investment  results.  We  invite  you to call or write for a free
information  kit  and to read  it  carefully  before  investing.  Our  portfolio
managers  welcome your comments and  suggestions.  Only with your help can we be
certain that we are meeting your investment needs--our primary objective.

As always, we appreciate your investing with us, and welcome your comments and 
suggestions

                                       Respectfully

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

                         REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Trustees and Shareowners
 of Saturna Investment Trust

In our opinion, the accompanying statements of assets and liabilities, including
the schedules of  investments,  and the related  statements of operations and of
changes  in net assets  and the  financial  highlights  present  fairly,  in all
material  respects,  the financial position of the Sextant Short-Term Bond Fund,
Sextant Bond Income Fund (formerly  Washington  Tax-Exempt Fund), Sextant Growth
Fund (formerly  Northwest Growth Fund) and Sextant  International  Fund, four of
the series of Saturna Investment Trust,  (formerly  Northwest  Investors Trust,)
hereafter  referred to as the "Trust" at November 30, 1995, the results of their
operations,  the changes in their net assets, and the financial highlights,  for
the  periods  indicated,   in  conformity  with  generally  accepted  accounting
principles.  These  financial  statements  and financial  highlights  (hereafter
referred to as "financial  statements")  are the  responsibility  of the Trust's
management;  our  responsibility  is to express  an  opinion on these  financial
statements  based on our  audits.  We  conducted  our audits of these  financial
statements  in accordance  with  generally  accepted  auditing  standards  which
require that we plan and perform the audits to obtain reasonable assurance about
whether the financial  statements  are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by management,  and evaluating the overall
financial  statement  presentation.  We believe that our audits,  which included
confirmation  of  securities  at November  30, 1995 by  correspondence  with the
custodian  and a broker,  provide a reasonable  basis for the opinion  expressed
above.  The  financial  statements of the Trust for each of the two years in the
period  ended   November  30,  1989  and  for  the  period   September  4,  1987
(commencement  of  operations)  through  November 30, 1987 were audited by other
independent  accountants  whose  report  dated  January  19, 1990  expressed  an
unqualified opinion on those statements.

Price Waterhouse
Seattle, Washington
December 15, 1995

<PAGE>
<TABLE>
<CAPTION>

SHORT-TERM BOND FUND
INVESTMENTS
NOVEMBER 30, 1995
RATING*ISSUER                                COUPON/MATURITY     FACE AMOUNT    MARKETVALUE
--------------------------------------------------- --------------------------------------------
                                                               
       U.S. GOVERNMENT OBLIGATIONS
       (71.1%)
<S>                                            <C>   <C>  <C>    <C>            <C>     
       U.S. Treasury Note                      8.00% 1/15/97     $120,000       $123,300
       U.S. Treasury Note                      6.00% 8/31/97     100,000        100,953
       U.S. Treasury Note                     7.875% 4/15/98     180,000        189,675
       U.S. Treasury Note                      7.00% 4/15/99     100,000        104,578
       U.S. Treasury Note                     7.125% 9/30/99    100,000         105,469
                                                                -------         -------
                                                                 600,000        623,975

       CORPORATE OBLIGATIONS (27.0%)
  A    GMAC                                  5.95% 12/28/98      40,000         39,813
  A+   Consolidated Nat. Gas                 5.875% 10/1/98      40,000         39,940
 AA-   Association Corp. N.A.                 6.125% 2/1/98      35,000         35,175
  A+   CSX Transportation                     7.05% 3/15/98      40,000         40,705
  AA   Central Illinois P.S.                 5.875% 5/1/97       40,000        39,920
  A-   Chase Manhattan                       9.05%2/1/02          40,000       41,277
                                                                 -------       ------
                                                                 235,000       236,830

       TOTAL INVESTMENTS (98.1%)                                 $835,000      860,805
                                                                 --------     16,927
                                                                               $877,732
       Other Assets (net of liabilities) (1.9%)                                --------
       Total Net Assets (100%)                                                     

<FN>
       *Ratings are the lesser of S&P
       or Moody's
</FN>

</TABLE>
<TABLE>
<CAPTION>

FINANCIAL HIGHLIGHTS
SELECTED DATA PER SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD
                                                SEPT. 28.
                                                '95 (INCEP-
                                                TION) TO
                                                NOV. 30 '95
<S>                                               <C>   
NET ASSET VALUE AT BEGINNING OF PERIOD            $5.00 
INCOME FROM  INVESTMENT  OPERATIONS

     Net Investment Income                         0.03
     Net gains or losses on securities
       (both realized and unrealized)              0.03
Total From Investment Operations                   0.06

    LESS DISTRIBUTIONS
    Dividends (from net investment income)        ($0.03)
    Distributions (from capital gains)            0.00
                                                  ----
Total Distributions                               (0.03)
NET ASSET VALUE AT END OF PERIOD                  $5.03
                                                
TOTAL RETURN                                      1.05%
RATIOS / SUPPLEMENTAL DATA
Net assets  ($000),  end of period                $878 
Ratio of expenses to average net assets            
(not  annualized)+                                0.23% 
Ratio of net  investment  income to Average 
net assets(not annualized)+                       0.68%
Portfolio turnover rate                            0%
<FN>

  + For the  above  period,  all or a portion  of the  operating  expenses  were
    waived. If costs had not been waived, the resulting increase to expenses per
    share in the period  would have been  $.007.  The  increase  to the ratio of
    expenses to average monthly net assets would be .16%.
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
</FN>
</TABLE>
<TABLE>
<CAPTION>

STATEMENT OF ASSETS AND LIABILITIES
AS OF NOVEMBER 30, 1995
ASSETS
     Investments, at value
<S>                                                    <C>     
     Bonds (cost $857,068)                            $860,805
     Cash                                               5,064
     Interest receivable                               12,494
                                                       ------
        Total Assets                                   878,363

LIABILITIES
     Payable to affiliate                              631
                                                       ---
        Total Liabilities                              631
                                                       ---

NET ASSETS                                           $877,732
                                                     ========
FUND SHARES OUTSTANDING
                                                     174,606

ANALYSIS OF NET ASSETS
     Paid in capital (unlimited shares authorized, without par)       873,995
     Undistributed net investment income (loss)                             -
     Accumulated net realized gain (loss) on investments                    -
     Unrealized net appreciation on investments                         3,737
                                                                        ------
     Net Assets applicable to Fund shares outstanding                  877,732
                                                                       =======

NET ASSET VALUE PER SHARE                                              $5.03
</TABLE>

<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS
PERIOD ENDED NOVEMBER 30, 1995
INVESTMENT INCOME
<S>                                                                       <C>        <C>
    Interest income                                                       $7,011
    Amortization of bond premiums                                         (1,251)
                                                                          -------
       Gross investment income                                                       $5,760
EXPENSES
    Investment adviser and administration fee                              605
    Professional fees                                                      850
    Printing and postage                                                    40
    Filing and registration fees                                            500
    Other expenses
                                                                            441
                                                                            ---
    Total grossexpenses                                                                2,436
       Less earnings credits                                               (391)
       Less advisory fee waived                                            (605)
                                                                           ---- 
    Net expenses
                                                                                    1,440
                                                                                    -----
       Net investment income
                                                                                    4,320
                                                                                    -----
NET REALIZED GAIN (LOSS) ON
INVESTMENTS
    Proceeds from sales                                                       -
    Less cost of securities sold based on identified cost                     -     
                                                                         -------
       Realized net gain                                                                -
                                                                                   -------
UNREALIZED GAIN (LOSS) ON
INVESTMENTS
    End of period
                                                                           3,737
    Beginning of period                                                        -
                                                                         ------- 
Increase in unrealized gain for the period                                            3,737
                                                                                     -----
       Net realized and unrealized gain on investments                               3,737
                                                                                     -----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                                $8,057
                                                                                    ======
                                                                          
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
</TABLE>
<TABLE>
<CAPTION>

STATEMENT OF CHANGES IN NET ASSETS
                                                                 Period Sept.
                                                                      28,1995
                                                                  (Inception)
                                                                      to Nov.
                                                                     30, 1995

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S>                                                             <C>   
     Net investment income                                      $4,320
     Net realized gain (loss) on investments                         -
     Net increase in unrealized appreciation                     3,737
                                                                 -----
     Net increase in net assets from operations                  8,057
                                                                 -----

DIVIDENDS TO SHAREOWNERS FROM:
     Net investment income                                        (4,320)
                                                                  ------ 
     Capital gains distributions                                       -
                                                                  ------
FUND SHARE TRANSACTIONS:
     Proceeds from sales of shares
                                                                  892,239
     Value of shares issued in reinvestmentof dividends             4,321
                                                                    -----
                                                                  896,560
     Cost of shares redeemed                                     (22,565)
                                                                 ------- 
     Net increase in net assets from share transactions          873,995
                                                                 -------
Total increase in net assets
                                                                  877,732
NET ASSETS
     Beginning of period
                                                                       -
     End of period                                              $877,732
                                                                ========
                                                          
Shares of the Fund Sold and Redeemed
     Number of shares sold                                        178,249
     Number of shares issued in reinvestmentof dividends              862
     Number of shares redeemed                                     (4,505)
                                                                   ------ 
Net Increase in Number of Shares Outstanding                      174,606
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
</TABLE>
<TABLE>
<CAPTION>

BOND INCOME FUND
INVESTMENTS
NOVEMBER 30, 1995
RATING*   ISSUER                COUPON/MATURITY               FACE AMOUNT    MARKET VALUE
-------------------------------------------------------------------------------------------

U.S. FEDERAL OBLIGATIONS
U.S. GOVERNMENT OBLIGATIONS(9.5%)
<S>                                  <C>                          <C>           <C>     
        U.S. Treasury Bond           8.125% due  8/15/2019        $85,000       $104,284
                                     

WASHINGTON STATE MUNICIPAL OBLIGATIONS
GENERAL OBLIGATION (14.2%)
  AAA   Aberdeen                      5.80% due 12/1/2012            50,000         51,121
                                      
  AAA   Marysville                   5.875% due 12/1/2012            25,000         25,479
                                     
  A+    Seattle Met.                 5.625% due 1/1/2012             40,000         39,621
        Municipality                  
  AAA   Stevens Co. Ltd Tax G.O.     5.5% due 12/1/2009            40,000         39,314
                                                                    -------        ------
        SUB-TOTAL                                                   155,000        155,535
GENERAL OBLIGATION (6.2)%
  AAA   Eastern Wash. Univ.  Rev    6.25% due 10/1/2012             25,000         25,948
       .                          
  AAA   Univ. Wash. Jr. Lien
        Hsg and Din. Rev.            6.125% due 12/1/2012           40,000         42,157
                                                                    -------        ------
         SUB-TOTAL                                                  65,000         68,105
HEALTH CARE (3.6%)
  AAA   WA St. Healthcare Fac.Rev.Ref.
        Dominican Health Serv.Spokane  5.75% due 6/1/2020            40,000        38,900
                               
SCHOOLS (9.2%)
  A+    King County #408 Auburn       6.25% due 12/1/2006            40,000         43,050
                                      
  AA-   King County #415 Kent         6.00% due 12/1/2008            40,000         42,044
                                      
   A    Skagit County #317 Conway     5.90% due 12/1/2007            15,000         15,749
                                                                    -------        ------
        SUB-TOTAL                                                    95,000        100,843
STATE EDUCATION (4.6%)
  AAA   Washington Higher Education
        Fac. Auth. Rev.(Seattle U.)   5.70% due 11/1/2010            50,000         50,610
                          
TRANSPORTATION (4.6%)
   A    Port of Tacoma Ser.A Ltd.G.O. 6.00% due 6/1/2011             50,000         50,806
                                       
UTILITY -ELECTRIC POWER (13.6%)
   A    Lewis County P.U.D #1
        Elec. Rev.                    6.10% due 6/1/2004             40,000         42,785
                                       
   A    Mason County P.U.D. #3
        Elec. Rev.                    6.30% due 1/1/2010             50,000         52,975
                                       
  AAA   Tacoma Elec. Sys. Rev.        6.25% due 1/1/2011             50,000         52,542
                                                                    -------        ------
        SUB-TOTAL                                                   140,000        148,302
UTILITY -WATER SUPPLY (4.1%)
  AAA   Asotin County P.U.D. #1       5.50% due 3/1/2009            20,000         20,066
  A     Spokane County Water
        Dist.#3 Rev. Ref.            5.90% due 1/1/2014             25,000         25,040
                                                                    -------        ------
         SUB-TOTAL                                                  45,000         45,106

CORPORATE OBLIGATIONS(27.1%)
  A-    Aetna Life & Casualty         7.25% due 8/15/2023           50,000         49,219
  A-    Alabama Power                 7.75% due2/1/2023             50,000         51,859
  A-    Comerica Bank                7.125% due 12/1/2013           50,000         50,308
  A-2   Corning Glass                8.875% due 3/15/2016           40,000         48,520
   A-1   Loews Corp.                   7.00% due 10/15/2023         50,000         47,469
  AA-   US West Communications        7.20% due11/10/2026           50,000         49,922
                                                                    -------        ------
                                                                    290,000        297,297

TOTAL INVESTMENTS (96.7%)                                       $1,015,000      $1,059,788
                                                                ===========
Other Assets (net of                                                               36,036
                                                                                   ------
liabilities) (3.3%)
Total Net Assets (100%)                                                        $1,095,824
                                                                               ==========
<FN>

*These unaudited bond ratings reflect the adviser's current rating of each bond,
as determined using Standard & Poors and Moody's  ratings.  All issues are rated
"A" or better by S&P or Moody's.
</FN>

</TABLE>

<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
SELECTED DATA PER SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
                                                                                      Period
                                                                 Year    Year         3/1/93
                                                                ended      ended      (Incep
                                                             November   November     tion)to
                                                              30, 1995   30, 1994   11/30/93
                                                              --- ----   --- ----   -- -- --
<S>                                                              <C>       <C>         <C>  
NET ASSET VALUE AT BEGINNING OF PERIOD                           $4.39     $5.03       $5.00
     INCOME FROM INVESTMENT OPERATIONS
     Net investment income                                       0.24       0.25        0.16
     Net gains or losses on securities
       (both realized and unrealized)                           0.52      (0.64)       0.04
                                                                -----     ------       ----
Total From Investment Operations                                0.76     (0.39)        0.20

    LESS DISTRIBUTIONS
    Dividends (from net investment income)
     Non-taxable                                             (0.236)     (0.25)     (0.167)
     Taxable                                                 (0.004)       n/a       n/a
    Distributions (from capital gains)                        0.00       0.00      (0.003)
                                                              -----      -----     -------
 Total Distributions                                         (0.24)     (0.25)      (0.17)
NET ASSET VALUE AT END OF PERIOD                             $4.91      $4.39       $5.03

TOTAL RETURN                                                17.69%    (8.24)%       4.86%

RATIOS/SUPPLEMENTAL DATA
Net assets ($000), end of period                           $1,096      $1,456      $1,662 
Ratio of expenses to average netassets (not annualized)+    0.54%      0.41%       0.35%
Ratio of net investment income to average                       
net assets (not annualized)+                                5.15%      5.48%       3.28%
Portfolio turnover rate                                     77%        74%         36%
<FN>

      +For each of the above periods, all or a portion of the operating expenses
       were waived. If these costs had not been waived, the resulting  increases
       to expenses per share in each of the above periods  would be $.03,  $0.22
       and $0.13, respectively. The increase to the ratio of expenses to average
       monthly net assets would be .60%, .51% and .26%, respectively.
</FN>

</TABLE>
<TABLE>
<CAPTION>

STATEMENT OF ASSETS AND LIABILITIES
AS OF NOVEMBER 30, 1995
ASSETS
     Investments, at value
<S>                                              <C>                                
     Bonds (cost $1,047,157)                     $1,059,788
     Cash                                         12,298
     Interest receivable                          22,895
     Insurance deposit                               400
        Total Assets                            1,095,381
                                                ---------

LIABILITIES
     Payable to affiliate                           (443)
                                                    ---- 
        Total Liabilities                          (443)
                                                   ---- 

NET ASSETS                                      $1,095,824
                                                ==========
FUND SHARES OUTSTANDING                           223,204

ANALYSIS OF NET ASSETS
     Paid in capital (unlimited shares 
          authorized,without par)                 1,153,661
     Undistributed net investment loss                 (251)
     Accumulated net realized gain (loss) on
     investments                                    (70,217)
     Unrealized net appreciation on investments      12,631
                                                     ------
     Net Assets applicable to Fund shares 
          outstanding                              $ 1,095,824
                                                   ===========
NET ASSET VALUE PER SHARE                              $4.91
                                                  
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1995
INVESTMENT INCOME 
<S>                                                                     <C>      <C>  
    Tax-free interest income                                            $63,693
    Taxable interest income                                                 978
    Amortization of bond premiums                                       (1,119)
    Accretion                                                               63
                                                                          -----
       Gross investment income                                                  $ 63,615
                                                                                    
EXPENSES
    Investment adviser and administration fee                              5,838
    Professional fees                                                      1,658
    Shareowner servicing                                                    842
    Printing and postage                                                  1,005
    Insurance                                                             1,508
    Custodial fees                                                          841
    Filing and registration  fees  `                                        503
   Other expenses                                                           564
                                                                            ---
    Total gross expenses                                                 12,759
       Less  earnings credits                                              (841)
      Less advisory fee waived                                           (5,838)
                                                                         ------ 
    Net expenses
                                                                                     6,080
       Net investment income
                                                                                    57,535
                                                                                    ------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
    Proceeds from sales                                                1,309,408
    Less cost of securities sold based onidentified cost              (1,324,518)
                                                                      -----------
       Realized net (loss)                                              (15,110)
                                                                        ------- 
UNREALIZED GAIN (LOSS) ON INVESTMENTS
    End of period                                                       12,631
    Beginning of period                                               (158,053)
                                                                      ---------
    Increase in unrealized gain for the period                                     170,684
                                                                                   -------
       Net realized and unrealized gain oninvestments                              155,574
                                                                                   -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                               $213,109
                                                                                   ========
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)

STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>

                                                     YEAR ENDED                 YEAR ENDED
                                                      NOV. 30, 1995            NOV. 30, 1994
                                                         
INCREASE (DECREASE) IN NET ASSETS
 OPERATIONS:
<S>                                                         <C>                      <C>    
     Net investment income                                   $57,535                  $87,317
      Net realized gain (loss) on investments               (15,110)                 (55,107)
     Net increase (decrease) in unrealized appreciation      170,684                 (171,284)
                                                             --------                ---------
     Net increase (decrease) in net assets from operations   213,109                 (139,074)
                                                            --------                 ---------

DIVIDENDS TO SHAREOWNERS FROM:
     Net investment income                                   (57,308)                (87,796)
     Capital gains distributions                                 -                        -
                                                           --------                 --------

FUND SHARE TRANSACTIONS: 
     Proceeds from sales of shares                          623,415                  840,168
     Value of shares issued in reinvestment of dividends     52,937                   73,082
                                                            -------                  ------
                                                             676,352                 913,250
     Cost of shares redeemed                                (1,192,060)            (893,178)
                                                            ----------             -------- 
     Net increase (decrease) in net assets from
     share transactions                                     (515,708)                 20,072
                                                            ---------                 ------
Total decrease in net assets                                  (359,907)              (206,798)

NET ASSETS
     Beginning of period                                  1,455,731                  1,662,529
                                                          ---------                  ---------
     End of period                                       $1,095,824                  $1,455,731
                                                         =========                    =========
     (Including undistributed net investment
     income of($251)at Nov.30,1995 and ($478) for Nov.
     30,1994)
Shares of the Fund Sold and Redeemed
     Number of shares sold                                  165,574                  167,886
     Number of shares issued in reinvestment of
     dividends                                              11,132                   15,358
     Number of shares redeemed                             (285,218)                (182,274)
                                                            --------                  -------- 

Net Increase (Decrease) in Number of Shares
Outstanding                                                 (108,512)                     970
                                                            ========                  ========

(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)

</TABLE>
                                       
                         DISCUSSION OF FUND PERFORMANCE
                                   (UNAUDITED)
                                FISCAL YEAR 1995
 During its latest  fiscal year,  through  November  30, 1995,  the Sextant Bond
Income Fund returned 17.69% to its  shareholders.  Its net asset value rose from
$4.39 to $4.91 during this period.

The Fund's  shareholders  voted in September to change the objective of the Fund
from a Washington State tax-exempt bond fund to its current objective of taxable
income.  Therefore,  the Fund's fiscal 1995  performance is a combination of the
Fund's operation under both objectives. Previous performance was under its prior
single state tax-exempt fund objective.

FACTORS AFFECTING PAST PERFORMANCE
The Fund's share value rose strongly throughout the year, under the influence of
a rising bond market. However,  earlier in the year, as a result of the market's
concern over the possibility of a flat or flatter income tax, the performance of
the municipal bond market was restrained compared to taxables.

An additional  factor  involved in the Fund's earlier  performance  was that the
Fund  was  created  in  anticipation  of a  Washington  State  income  tax.  The
anticipation  of such a tax raised bond  prices  early in the Fund's  life,  but
created an extra drag on performance as that premuium  dissipated when it became
clear such a tax would not be passed.

During its  operation  as a  municipal  fund,  as a matter of  policy,  the Fund
restricted its portfolio maturity to the intermediate  5-to-15 year range. These
bonds have lower coupons (interest payments) than do those of longer maturities.
This factor, and the fact that the Fund was started in an environment of low and
declining  interest rates, left the Fund with a portfolio of lower coupon issues
that fell in price more quickly in a rising interest rate environment than might
have been expected in a portfolio with higher coupons.

These factors mean that in comparisons of its  performance the Fund will be at a
disadvantage when compared to an index of taxable bonds, or funds, none of which
were subject to such considerations.

LOOKING FORWARD
After  September 28, when the Fund's new objective was in place,  the Fund began
to sell its portfolio of municipal  securities,  being mindful of market and tax
considerations.  As the fiscal year ended,  the Fund still held some  tax-exempt
securities,  with a rally in the municipal  market making them  relatively  more
atractive to hold.

Perhaps the most important  factors  influencing its performance  relative to an
index of bonds or other  funds will be the  Fund's  emphasis  on  quality  and a
tendency to avoid the very longest bonds in the market.  These factors may limit
the Fund's price  fluctuations  compared to broad unmanaged bond market indexes.
COMPARISON  TO INDEX  Comparison of any fund to an index must be made bearing in
mind that the index is unmanaged,  AND EXPENSE-FREE.  On the other hand the fund
likely 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 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 March, 1993 would
have risen to $11,228 in the Fund and $12,032 in the Index. The relatively short
history of the Fund,  and the change its  policy  limit the  usefulness  of this
comparison. Past performance is not indicative of future results.
               Fund      Index
    Feb-93  $10,000    $10,000
    Nov-93  $10,397    $10,534
    Nov-94   $9,540    $10,214
    Nov-95   $1,128    $12,032


 graphic depiction omitted

<TABLE>
<CAPTION>

GROWTH FUND
INVESTMENTS
                                 NUMBER                                      MARKET
ISSUE                         OF SHARES                          COST         VALUE
------------------------------------------------------------------------------------
COMMON STOCKS

BANKING (7.7%)
<S>                               <C>                         <C>           <C>    
Washington Mutual                 3,000                       $44,124       $84,750
Savings Bank
Northwest Saving Bank               100                        2,539         2,525
                                                               ------        -----
                                                               46,663      87,275
CONSTRUCTION (5.4%)
BMC West*                         2,250                        27,453        27,844
Butler Manufacturing              1,000                        31,071        34,500
                                                              -------       ------
                                                               58,524        62,344
MEDICAL/HEALTHCARE (9.9%)
Cardinal Health                     500                        26,135        27,000
Genentech*                        1,000                        37,225        51,125
Humana                            1,300                       30,300        34,612
                                                              -------       ------
                                                               93,660       112,737
CHEMICALS (2.4%)
Lawter International              2,500                        27,298        27,188

COMPUTERS  (6.4%)
Apple Computer                    1,000                        28,067        38,125
Microsoft*                          400                        14,897        34,850
                                                              -------       ------
                                                               42,964        72,975
ELECTRONICS (7.4%)
FLIR Systems                      3,700                        39,669        48,100
Merix                             1,000                       31,822        36,250
                                                              -------       ------
                                                               71,491        84,350
FINANCIAL (13.2%)
Franklin Resources                  800                        13,562        42,300
McDonald & Co.                    2,000                        34,347        35,000
Schwab, Charles                   3,025                        9,117        73,356
                                                               ------       ------
                                                               57,026       150,656
STEEL (6.1%)
Geneva Steel                      4,000                        28,667        29,000
Nucor                               800                        38,380        39,900
                                                              -------       ------
                                                               67,047        68,900
OIL & GAS PRODUCTION (4.8%)
Atlantic Richfield                  300                        34,125        32,512
Noble Drilling                    3,000                        21,322        21,750
                                                              -------       ------
                                                               55,447        54,262
PAPER & PRODUCTS (6.3%)
Boise Cascade                     1,900                        44,586        70,775

POLLUTION CONTROL (3.4%)
Ionics                              900                        36,864        38,925

RETAIL (6.7%)
Nordstrom                         1,000                        37,703        39,250
Albertson's                       1,200                        26,255        36,900
                                                              -------       ------
                                                               63,958        76,150
TRANSPORTATION (11.3%)
Airborne Freight                  1,000                        25,784        28,125
Fritz Companies*                  2,000                        29,069        77,500
Mesa Airlines                     2,500                       25,423        22,656
                                                              -------       ------
                                                               80,276       128,281

TOTAL INVESTMENTS (91.0%)                                   $745,804     $1,034,818
                                                            =========
Other Assets (net of liabilities) (9.0%)                                   102,185
                                                                           -------
Total Net Assets (100%)                                                 $1,137,003
                 ====                                                   ==========
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
</TABLE>
<TABLE>
<CAPTION>

FINANCIAL HIGHLIGHTS
SELECTED DATA PER SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:
                                                                                               
                                                                                              Sept. 4, '87 
                                                                                              (commence-
                                                                                              ment of op-
                                          For Year Ended  November 30,                        erations)to                     
                              ------- ------ --------------------------------------------------------
                                1995   1994    1993    1992  1991    1990    1989   1988     Nov.30 '87
                                ----   ----    ----    ----  ----    ----    ----   ----        ---  --
                              
                                                                                                                     
NET ASSET VALUE AT
<S>                            <C>    <C>     <C>     <C>    <C>     <C>     <C>    <C>        <C>  
BEGINNING OF PERIOD            $5.82  $6.38   $5.93   $5.55  $4.93   $4.88   $4.88  $4.96      $5.00
   INCOME FROM INVESTMENT
   OPERATIONS
   Net InvestmentIncome        (0.03) (0.03)    0.01    0.01   0.04    0.27    0.28   0.30       0.06
   Net gains or losses on
   securities (both realized   
    and unrealized)            1.82  (0.53)   0.45    0.38   0.60    0.01    0.00  (0.08)     (0.04)              
                               ----  -----    ----    ----   ----    ----    ----  -----      -----               
 Total From Investment         1.79 (0.56)    0.46    0.39   0.64    0.28    0.28   0.22       0.02
      Operations
   LESS DISTRIBUTIONS
   Dividends (from
   net investment income)     0.00   0.00  (0.01)  (0.01) (0.02)  (0.23)  (0.28) (0.30)     (0.06)
   Distributions (from            
     capital gains)          (0.19)  0.00    0.00    0.00   0.00    0.00    0.00   0.00      0.00         
                        
  Total Distributions        (0.19)   0.00  (0.01)  (0.01) (0.02)  (0.23)  (0.28) (0.30)     (0.06)
NET ASSET VALUE AT END
    OF PERIOD               $7.42  $5.82   $6.38   $5.93  $5.55   $4.93   $4.88  $4.88      $4.96
TOTAL RETURN                30.76%  (8.78)%  7.76%   7.01% 11.79%   7.37%   5.22%  5.12%      2.17%
RATIOS / SUPPLEMENTAL
DATA
Net assets ($000),end of pd.$1,137 $1,010  $1,425  $1,321   $947     $53  $1,356 $1,365       $315
Ratio of expenses to
ave. net assets+            1.63%  1.50%   1.40%   1.60%  1.93%   1.06%   0.89%  0.25%      .06%*
Ratio of netinvestment 
income to ave. net assets+ (0.45)% (0.43)%  0.15%   0.17%  0.60%   5.25%   5.60%  5.86%      .85%*
Portfolio turnover rate      40%    12%     25%     46%    16%     29%     19%    20%         0%

Average commission rate paid$.0572


<FN>

   + For 1995 and for each of the above years prior to 1992, all or a portion of
   the operating  expenses were waived, If these costs had not been waived,  the
   resulting  increase to expenses per share in each of the above  periods would
   be $.01, $.05, .$.05, $.10, $.16 and
    $.02, respectively. The increase to the ratio of expenses to average
   net assets would have been 0.21%, 0.76%, 1.02%, 1.28%,
    2.02%, and 0.17%.
   *not annualized
</FN>
</TABLE>
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
<TABLE>
<CAPTION>

STATEMENT OF ASSETS AND LIABILITIES
AS OF NOVEMBER 30, 1995
ASSETS
     Investments, at value
<S>                      <C>                                     <C>       
     Common stocks (cost $745,804)                               $1,034,818
     Cash                                                           109,186
     Dividends receivable                                               608
     Insurance deposit                                                1,214
                                                                      -----
        Total Assets                                              1,145,826
                                                                  ---------
IABILITIES
     Payable to affiliate:
                                                                       8,823
                                                                       -----
        Total Liabilities                                              8,823
                                                                       -----

NET ASSETS                                                         $1,137,003
                                                                   ==========

FUND SHARES OUTSTANDING                                            153,216

ANALYSIS OF NET ASSETS
     Paid in capital (unlimited shares authorized,
     without par)                                                  861,250
     Undistributed netinvestment income (loss)                    (9,420)
     Accumulated net realized gain (loss) on investments           (3,841)
     Unrealized net appreciation
     on investments                                                289,014
                                                                   -------
     Net Assets applicable to Fund shares outstanding             $1,137,003
                                                                  =========

NET ASSET VALUE PER SHARE                                         $7.42
</TABLE>
<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1995
INVESTMENT INCOME
<S>                                                             <C>          <C>
    Dividends                                                   $11,685
                                                                -------
       Gross investment income                                               $11,685
                                                                                       
EXPENSES
    Investment adviser and administration fee                    7,255
    Professional fees                                            3,325
    Shareowner servicing                                         1,272
    Printing and postage                                           959
    Filing and registration fees                                 1,500
    Insurance                                                    1,330
    Custodial fees                                               2,110
    Other expenses                                                 430
                                                                   ---
    Total gross expenses                                         18,181
       Less earnings credits                                     (2,110)    16,071
                                                                 ------     ------
   Net expenses                                                             16,071
                                                                            ------
     Net investment (loss)                                                  (4,386)
                                                                            ------ 
NET REALIZED GAIN (LOSS) ON INVESTMENTS
    Proceeds from sales                                        591,258
    Less cost of securities sold based on identified cost      536,534
                                                               -------
       Realized net gain                                                   54,724
                                                                           ------
    
 UNREALIZED GAIN (LOSS) ON INVESTMENTS 
    End of period                                              289,014
    Beginning of period                                         74,829
                                                                ------
    Increase in unrealized gain for the period                             214,185
                                                                           -------
       Net realized and unrealized gain on investments                     268,909
                                                                           -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS                       $264,523
                                                                            =======
</TABLE>
<TABLE>
<CAPTION>

 (THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)

STATEMENT OF CHANGES IN NET ASSETS
                                                            YEAR ENDED     YEAR ENDED
                                                            NOV. 30,       NOV. 30, 1994
                                                            1995

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S>                                                         <C>            <C>     
     Net investment loss                                    $ (4,386)      $(5,263)
                                                    
     Net realized gain (loss) on investments                   54,724      (4,125)
     Net increase (decrease) in unrealizedappreciation        214,185      (83,179)
                                                            --------       --------
     Net increase (decrease) in net assets from operations  264,523        (92,567)
                                                            --------       --------

DIVIDENDS TO SHAREOWNERS FROM:
     Net investment income                                        -              -
                                                            --------       --------
      Capital gains distributions                           (28,392)             -
                                                            -------         -------

FUND SHARE TRANSACTIONS:
     Proceeds from sales of shares                          306,751          192,628
     Value of shares issued in reinvestment of dividends    28,060               -
                                                            -------         -------
                                                            334,811         192,628
     Cost of shares redeemed                               (444,025)       (513,818)
                                                           --------        -------- 
     Net decrease in net assets from share transactions    (109,214)       (321,190)
Total increase (decrease) in net assets                    126,917         (413,757)

NET ASSETS
     Beginning of period                                 1,010,086        1,423,843
                                                         ---------        ---------
     End of period                                       1,137,003        1,010,086
                                                        ==========        =========
     (Including undistributed net investment
     income of($9,420)  for  Nov. 30,1995 and $(5,034)
     for Nov. 30,1994)
Shares of the Fund Sold and Redeemed
     Number of shares sold                              43,111              30,663
     Number of shares issued in reinvestment
          of dividends                                  3,782                    -
     Number of shares redeemed                         (67,343)            (80,295)
                                                       -------             ------- 

Net Decrease in Number of Shares Outstanding           (20,450)            (49,632)
                                                        =======             =======
</TABLE> 
(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)




                         DISCUSSION OF FUND PERFORMANCE
                                  (UNAUDITED)
 FISCAL YEAR 1995
During  the year  ended  November  30,  1995,  the  Fund's  total  return to its
shareholders  was  +30.76%.  The Fund's net asset  value per share rose to $7.42
from $5.82, with a 19(cent) capITAL gain dividend paid at fiscal year end.

FACTORS AFFECTING PERFORMANCE
In September,  1995, the Fund's shareholders voted to broaden its objective from
that of investing  primarily in growth type securities of companies  linked only
to the  Northwest.  Following  the  change,  the Fund  may now seek  investments
wherever in the U.S. it finds them appropriate,  and is no longer limited to the
Northwest. Additionally, the new advisory contract resulted in lower expenses to
shareholders.

The Fund began operations as a growth stock fund in December 1990 (prior to that
time  it had  been  invested  in  short-term  Idaho  municipal  bonds,  and  the
performance  during  that  period  is not  relevant).  For  the  first  year  of
operations,  Northwest  stocks  and the  national  stock  markets  grew in close
proximity.  However,  during 1992 the recession  that had earlier cycled through
other  parts of the nation  spread to the  Northwest,  and stocks of this region
considerably  underperformed the national averages.  This phenomenon lasted into
the mid-90's,  at which time the change in policy was  recommended by the Fund's
adviser.

Coincidentally  with the  decision to change the Fund's  policy,  the market for
companies in which the Fund invested more heavily as a result of its  geographic
limitations  began to  perform  considerably  better.  The  Fund has  maintained
significant investment in technology oriented investments, and these stocks were
among the market leaders for much of the year 1995.

LOOKING FORWARD
Although the Fund is free to invest  outside the  Northwest  region,  the Fund's
change in policy is not expected to result in great  change in the  character of
the Fund.

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.  To be
comparable, the S&P 500 Index data includes reinvested income. Comparison of any
fund to an index must be made bearing in mind that the index is  unmanaged,  AND
EXPENSE-FREE.  On the other hand the fund likely  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  shows that  $10,000  invested  in Sextant  Growth  Fund at the end of
December 1990 (when it was Northwest Growth Fund) would have grown to $15,469 at
the end of November  1995.  If $10,000  could have been  invested in the S&P 500
Index at the end of December 1990, that would grown to $21,526. Past performance
is not indicative of future results.
Date         Sextant    S&P 500
             Growth     Index
       Dec-90     10000       10000
       Nov-91     11246       11917
       Nov-92     12035       14115
       Nov-93     12969       15579
       Nov-94     11830       15741
       Nov-95     15469       21526

(GRAPHIC OMITTED)
<TABLE>
<CAPTION>

INTERNATIONAL FUND
INVESTMENTS
NOVEMBER 30, 1995
                                    NUMBER                                              MARKET
ISSUE                            OF SHARES                             COST              VALUE

COMMON STOCKS

AUTOMOTIVE MFG. (3.2%)
<S>                                    <C>                          <C>                <C>    
Volvo AB ADS                           500                          $11,686            $10,500

BANKING AND FINANCIAL (7.2%)
Aus.& New Zea. Bk. ADR                 500                           10,875             11,125
Aegon NV ADR                           300                          11,513            12,300
                                                                    -------            ------
                                                                     22,388             23,425

COMPUTERS  (2.2%)
Scitex Corp. Ltd.                      500                            9,250              7,188

CONSUMER PRODUCTS
(3.1%)
Coca Cola FEMSA S.A.                   500                            9,750             10,250
ADR

CLOSED END COUNTRY FUNDS (15.4%)
Austria Fund                         1,000                            7,923              8,000
Chile Fund                             500                           11,313             12,125
Irish Investment Fund                  900                           10,238             10,800
Malaysia Fund                          600                            9,750             10,275
Singapore Fund                         700                           9,538              9,362
                                                                     ------             -----
                                                                     48,762             50,562

ELECTRICAL EQUIPMENT
(8.5%)
ASEA AB ADS                            100                           10,000              9,650
Electrolux AB ADR                      200                            8,800              8,600
NEC Corp ADR                           150                          10,219              9,619
                                                                    -------             -----
                                                                     29,019             27,869

MEDICAL-DRUGS (6.1%)
Glaxo Wellcome plc ADR                 400                            9,800             10,700
Novo-Nordisk A/S ADR                   300                           9,712              9,300
                                                                     ------             -----
                                                                     19,512             20,000

NATURAL RESOURCE PRODUCTION (9.6%)
Barrick Gold                           400                            9,600             10,550
RTZ Corp PLC ADS                       200                           11,375             11,700
Total S.A. ADR                         300                           8,812              9,262
                                                                     ------             -----
                                                                     29,787             31,512

PAPER PRODUCTS (2.7%)
Aracruz Cellulose S.A.               1,000                            9,876              9,000
ADR

PHOTOGRAPHIC EQUIPMENT (5.7%)
Canon, Inc. ADR                        100                            8,687              8,863
Fuji Photo Film ADR                    200                          10,050              9,900
                                                                    -------             -----
                                                                     18,737             18,763

TELECOMMUNICATIONS
(12.9%)
BCE Inc                                300                            9,922             10,050
British Sky                            300                           11,063             12,000
Broadcasting ADS
Telecom Corp New                       150                           10,050             10,050
Zealand ADS
Telefonica de Espana ADS               250                          10,250             10,375
                                                                    -------            ------
                                                                     41,285             42,475

TRANSPORTATION (9.2%)
British Airways                        150                           10,931             10,556
Canadian Pacific Ltd.                  500                            8,164              9,125
KLM Royal Dutch Airlines               300                          10,650             10,350
                                                                    -------            ------
                                                                    29,745             30,031
                                                                    -------            ------

UTILITIES-ELECTRIC
(6.1%)
Enersis S.A. ADR                       400                           10,100             10,250
Korea Electric Power ADR               400                           9,500              9,750
                                                                     ------             -----
                                                                    19,600             20,000
                                                                    -------            ------

TOTAL INVESTMENTS (91.9%)                                         $299,397            $301,575
                                                                  =========
Other Assets (net of liabilities) (8.1%)                                               26,563
Total Net Assets (100%)                                                              $328,138
</TABLE>

(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
<TABLE>
<CAPTION>

FINANCIAL HIGHLIGHTS
SELECTED DATA PER SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD:

                                                                   Sept.28,'95
                                                                 (Inception)to
                                                                    Nov.30,'95
                                                                       ---- --
NET ASSET VALUE AT BEGINNING OF PERIOD                                   $5.00
    INCOME FROM INVESTMENT OPERATIONS
<S>                                                                      <C>   
    Net investment income                                                (0.02)
    Net gains or losses on securities(both realized and unrealized)       0.01
                                                                          ----
  Total from investment operations                                         (0.01)
    LESS DISTRIBUTIONS
    Dividends (from net investment income)                                 0.00
    Distributions (from capital gains)                                     0.00
Total distributions                                                        0.00
NET ASSET VALUE AT END OF PERIOD                                          $4.99
TOTAL RETURN                                                            (0.20)%
RATIOS/SUPPLEMENTAL DATA
Net assets ($000), end of period                                           $328
Ratio of expenses to average net assets                                    0.49%
(not annualized)
Ratio of net investment income to Average net assets (not annualized)    (0.38)%
Portfolio turnover rate (not annualized)                                   12%
Average commission rate paid                                           $0.0192
<FN>
   
 For the above period, all or a portion of the
    operating expenses were waived. If costs had
     not been have  waived and  directly  assumed,  the  resulting  increase  to
    expenses per share in the period  would have been $.01.  The increase to the
    ratio of expenses to average monthly net assets would be .21%.
</FN>
</TABLE>

(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)


<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
AS OF NOVEMBER 30, 1995
ASSETS
     Investments, at value
<S>                                                                     <C>    
     Common stocks (cost $299,397)                                       301,575
     Cash                                                                 26,757
     Dividends receivable                                                    295
                                                                          ------
        Total Assets
                                                                         328,627

LIABILITIES
     Payable to affiliate
                                                                             489
                                                                          ------
        Total Liabilities                                                    489
                                                                          ------

NET ASSETS                                                              $328,138
                                                                        ========

FUND SHARES OUTSTANDING                                                   65,795

     Paid in capital  (unlimited shares authorized, without par)         328,284
     Undistributed netinvestment income (loss)                           (1,140)
     Accumulated net realized gain (loss) on investments                 (1,184)
     Unrealized net appreciation on investments                            2,178
                                                                         -------
     Net Assets applicable to Fund shares outstanding                   $328,138
                                                                        ========
                                                     
                                                                            

NET ASSET VALUE PER SHARE                                                  $4.99
</TABLE>

(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)
<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS
PERIOD ENDED NOVEMBER 30, 1995
INVESTMENT INCOME
<S>                                                                    <C>      <C> 
    Dividends                                                          $332
                                                                       ----
       Gross investment income                                                  $332
EXPENSES
    Investment adviser and administration fee                          296
    Professional fees                                                  550
    Printing and postage                                                40
    Filing and registration fees                                       500
    Custodial fees                                                     636
    Other expenses                                                      86
                                                                      -----
    Total gross expenses                                              2,108
       Less earnings credits                                           (636)
                                                                       ---- 
    Net expenses
                                                                                1,472
                                                                                -----
       Net investment income
                                                                               (1,140)
                                                                               ------ 
NET REALIZED GAIN (LOSS) ON
INVESTMENTS
    Proceeds from sales                                                30,542
    Less cost of securities sold based on identified cost              31,726
                                                                       ------
       Realized net loss                                                       (1,184)
                                                                               ------ 
UNREALIZED GAIN (LOSS) ON INVESTMENTS
    End of period                                                      2,178
    Beginning of period                                                    -
                                                                      -------
    Increase in unrealized gain for the period                                  2,178
                                                                                -----
       Net realized and unrealized gain on investments                            994
                                                                                  ---
NET DECREASE IN NET ASSETS RESULTING                                            $(146)
                                                                               =======
FROM OPERATIONS                                                                  
                                                                                 
</TABLE>
<TABLE>
<CAPTION>

STATEMENT OF CHANGES IN NET ASSETS
                                                                    Period Sept. 
                                                                    28,1995(in-
                                                                    ception) to
                                                                     Nov. 30,
                                                                         1995

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
<S>                                                                  <C>     
     Net investment loss                                             $(1,140)
     Net realized gain (loss) on investments                          (1,184)
     Net increase (decrease) in unrealized appreciation                 2,178
                                                                        -----
     Net increase (decrease) in net assets from operations               (146)
                                                                       ------- 

DIVIDENDS TO SHAREOWNERS FROM:
     Net investment income                                                  -
     Capital gains distributions                                            -
                                                                        ------
FUND SHARE TRANSACTIONS:
     Proceeds from sales of shares                                     328,284
     Value of shares issued in reinvestment of dividends                    -
                                                                        ------
                                                                       328,284 
    Cost of shares redeemed                                                  -
                                                                       -------
Net increase in net assets from share transactions                    328,284
                                                                      -------
Total increase in net assets                                          $328,138
                                                                       =======

NET ASSETS
     Beginning of period                                                     -
                                                                       -------
     End of period                                                     $328,138
                                                                       --------
     (Including undistributed net investment
     income of ($1,140) for Nov. 30, 1995)
Shares of the Fund sold and redeemed
     Number of shares sold                                               65,795
     Number of shares issued in reinvestment of dividends                     -
                                                                        --------
     Number of shares redeemed                                               -
                                                                        --------
Net Increase in Number of Shares Outstanding                             65,795
</TABLE>

(THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS)

NOTES TO FINANCIAL STATEMENTS

Note 1-ORGANIZATION
Saturna Investment Trust (the "Trust") (formerly  Northwest Investors 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 POLICIES
The 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
investment income and realized net gains on investments. Therefore, 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.

Note 3--TRANSACTIONS WITH AFFILIATED PERSONS
Under a contract  approved by  shareowners  on September 28, 1995,  ("Contract")
Saturna Capital  Corporation  provides  investment advisory services and certain
other  administrative  and  distribution  services  to conduct  Trust  business,
including shareholder servicing and transfer agency services.  Each of the Funds
pays the Adviser an  Investment  Advisory and  Administrative  Services Fee (the
"Base Fee.") of .60% of average net assets per annum,  payable monthly. The Base
Fee is subject to adjustment up or down depending on the investment  performance
of the Fund relative to a specified  index (the  "Performance  Adjustment").  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 0.80% through March 31, 1997 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,  1995,  Sextant  Bond  Income Fund and Sextant
Growth Fund incurred advisory expenses of $5,838 and $7,255, respectively, which
include  expenses  incurred  under the  advisory  contract  in  effect  prior to
September 28, 1995.  Sextant  International  incurred advisory expenses of $296,
and Sextant  Short-Term  Bond Fund  incurred  advisory  expenses  of $605,  each
incurring no such expenses  under the agreement in effect prior to September 28,
1995.

In accordance  with the expense waiver noted above,  for the year ended November
30,  1995,  Saturna  Capital  waived  $605 of the Sextant  Short-Term  Bond Fund
advisory fee and $5,838 of that of Sextant Bond Income Fund.

Prior to adoption of the Contract,  Saturna provided shareholder servicing under
a separate  agreement  pursuant to which  Sextant  Growth Fund and Sextant  Bond
Income  Fund paid  $1,272 and $842,  respectively  during the fiscal  year ended
November 30, 1995.

In accordance with the Funds' agreement with their custodian bank, National City
Bank,  for the year ended  November 30 1995,  custodian fees incurred by Sextant
Short Term Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund, and Sextant
International Fund, and subsequently waived,  amounted to $391, $841, $2110, and
$636, respectively.

One trustee,  who also serves as the  president of the Trust,  is a director and
president of the Adviser. Another is vice president and director of the Adviser.
All trustees  have served to date  without  compensation;  beginning  January 1,
1996,  the  unaffiliated  trustees  will  begin to  receive  $100  per  Board or
committee  meeting  attended.  On November 30, 1995, the trustees,  officers and
their  immediate  families  as a  group  owned  56%,  31%,  16%  and  59% of the
outstanding  shares of Sextant  Short-term Bond Fund,  Sextant Bond Income Fund,
Sextant Growth Fund and Sextant International Fund, respectively.

The Trust acts as a  distributor  of its own shares,  except in those  states in
which   Investors   National   Corporation  (a  subsidiary  of  Saturna  Capital
Corporation)  is itself  registered as a  broker-dealer  and acts as distributor
without compensation.  Investors National Corporation is the primary stockbroker
used to effect  portfolio  transactions  for  Sextant  Growth  Fund and  Sextant
International  Fund,  and paid $3,188 and $266,  respectively  in commissions at
deep-discount rates during the year ended November 30, 1995.

Note 4--FEDERAL INCOME TAXES
At November 30, 1995, Sextant  International Fund had capital loss carryforwards
of $1,184  which  expire in 2003 and Sextant  Bond Income Fund had capital  loss
carryforwards  of $70,216 which expire in 2002 and 2003,  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--INVESTMENTS
At November 30, 1995, the net unrealized appreciation of investments for Sextant
Bond  Income  Fund of $12,631  comprised  net  unrealized  gains of $14,398  and
unrealized losses of $1,767.  Additionally,  the net unrealized  appreciation of
investments  for Sextant Growth Fund,  Sextant  Short-Term Bond Fund and Sextant
International Fund were $289,014,  $3,737, and $2,178, which consist of gains of
$293,516,  $4,584, and $8,864 and unrealized losses of $4,502,  $847, and $6,686
respectively.

During the year ended November 30, 1995,  Sextant Short Term Bond Fund purchased
$858,319 of securities and sold/matured none. Comparable figures for Bond Income
Fund are $822,908 and $1,309,408; for Growth Fund $371,870 and $591,258; and for
International  Fund,  $331,123  and $30,542.  Included in the above  amounts for
Sextant  Short-Term  Bond Fund and Sextant  Bond Income  Fund are  purchases  of
$620,575  and  $102,717  and sales of $0 and $0 of U.S.  Government  securities,
respectively.

                         SEXTANT MUTUAL FUNDS (GRAPHIC)
                                   (GRAPHIC)
                                SHORT-TERM BOND
                                  BOND INCOME
                                     GROWTH
                                 INTERNATIONAL
                                SATURNA CAPITAL
                                  MUTUAL FUNDS
                              1300 No. State Street
                            Bellingham WA 98225-4730
                                  1-800/SATURNA
                                 (800/728-8762)
                                  ANNUAL REPORT
                               NOVEMBER 30, 1995

This report is issued for the information of the shareowners of the Funds.  It
 is not authorized fordistribution to prospective investors unless it is accom-
panied or preceded by an effective prospectus relating to the securities of the
Trust. The Sextant Funds are series of Saturna Investment Trust.