Sextant

**Mutual Funds**

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(Graphic Omitted)
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*Fellow Shareowners:*

The “New Economy” fantasy era is over, and with it    the long bull market. Downward readjustments that commenced in March 2000    continue. Technology is still a wreck. Fortunately, much of the important    news is good. Stimulative federal fiscal and monetary policies stopped abudding    recession in 2001, and the economy is growing at around 3% annually.Consumers    continue to spend, and corporate earnings are not as dismal as the pressmakes    out. The “piling on” presently underway against business worldwide    makes good politics, but the long-term impacts appear small.     Prudent investors do well to remember that change is the only real constant.    Today’s choppy economic seas will again be soothed by the“invisible    hand” of free economic markets. Change is the rational for our fourdistinctly    different Sextant funds, which allow investors to choose the variablereturns    of the domestic and international stock markets, long-term bonds, or thesafety    of short-term bonds.
    As would be expected for the six and twelve months ended May 31st, theShort-Term    Bond Fund and Bond Income Fund outdistanced the Growth and InternationalFunds.    Looking forward, interest rates are likely to remain steady, while stockprices    look poised for a significant rebound. Rotation from fully priced bonds back    into depressed stocks should be rewarding over the next year.    Our Sextant funds employ a “fulcrum” advisory fee structure that    rewards or penalizes Saturna Capital for investment results. Relativeperformance    of the Sextant funds continued their long-term record of being aboveaverage,    and each Sextant fund outperformed their Morningstar benchmarks to qualify    for performance fee bonuses. For the six and twelve months ended May 31,2002    comparative total returns are:Sextant Fund6-month           Total Return12-month          Total Returnvs. Morningstar12-month          Total ReturnShort-Term Bond+2.39%+7.14%Short-Term Bonds+5.42%Bond Income+2.94%+9.73%Long-Term Bonds+6.38%Growth-0.59%-3.74%Domestic Growth-11.39%International+0.83%-8.74%Foreign Stock-9.49%)
While our funds remain small, growing awareness of the Sextant    Funds and their excellent services continues to attract investor inquiries.    It has been an exciting year so far and we are looking forward to the second    half. Thank you for investing 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)
July 15, 2002
*May 31, 2002Semi-Annual        Report* *1*
  
**INVESTMENTS** **SEXTANTSHORT-TERM          BOND FUND**(graphic omitted)**Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**     *As of May 31, 2002*  ***Auto/Truck Manufacturing (4.4%)***    A-DaimlerCrysler6.90% 9/1/2004 $90,000 $93,573  ***Banking (12.2%)***    A+Australia & New Zealand Bank6.25% 2/1/2004 85,000 88,043 ABankers Trust8.25% 5/1/200585,00092,285 A-Washington Mutual Financial 8.25% 6/15/200575,000  81,608  *SUB-TOTAL*  245,000 261,936  ***Building Products (3.5%)***    A-Lowes Companies7.50% 12/15/200570,00075,915  ***Chemicals (3.1%)***    A-Praxair6.15% 4/15/2003 65,000  66,248  ***Computer (7.3%)***    AA-Hewlett Packard7.15 % 6/15/200570,00073,143 BBB+Sun Microsystems7.35% 8/15/200480,00083,432  *SUB-TOTAL* 150,000156,575  ***Cosmetics & Toiletries (3.5%)***    BBBDial6.625% 6/15/2003 75,000  76,582  ***Finance & Insurance (17.1%)***    AAlliance Capital Mangement5.625% 8/15/200665,00065,689 A+International Finance AIG5.75% 10/15/200695,00096,235 A-Lincoln National Insurance7.25% 5/15/2005 100,000 106,670 BBB+Stillwell Financial7.00% 11/1/200695,000100,063  *SUB-TOTAL*  355,000 368,657  ***Machinery (8.5%)***    ADeere6.55% 7/15/200490,00093,177 AEaton6.95% 11/15/200485,00088,774  *SUB-TOTAL* 175,000181,951 ********2** *May 31, 2002          Semi-Annual Report*(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**  ***Medical Drugs (11.5%)***    AAABristol Myers Squibb4.75% 10/1/200690,00089,073 ACardinal Health 6.50% 2/15/200475,00077,783 A-Wyeth7.90% 2/15/200575,00081,135  *SUB-TOTAL* 240,000247,991  ***Oil & Gas (10.5%)***    AA+Amoco Canada7.25% 12/1/2002 70,000  71,106 A-Columbia Energy 6.61% 11/28/2002 50,000  49,965 BBB+Union Oil of California7.20% 5/15/2005 100,000  104,790  *SUB-TOTAL*  220,000 225,861  ***Retailing (2.4%)***    BBBSafeway6.05% 11/15/2003 50,000  50,925  ***Telecommunications (4.5%)***    BBBSprint Capital 5.875% 5/1/2004 100,000  96,968  ***Utilities (4.6%)***    AA-Florida Power & Light6.875% 12/1/2005 95,000 99,807              **Total Investments (93.1%)**(Cost = $1,936,313) $1,930,000 2,002,989  Other Assets (net of liabilities) (6.9%)  147,412  **Total Net Assets (100%)** **$2,150,401**  **Ratings are the lesser of S&P or Moody's(unaudited)*    *May 31, 2002Semi-Annual        Report* *3***FINANCIALHIGHLIGHTS** 
**SEXTANTSHORT-TERM          BOND FUND**(Graphic          Omitted)Selected data per share of capital stock outstandingthroughout        the period:         For the year ended November 30,  
Period ended          May 31, 2002
20012000199919981997**Net asset value at beginning of period** **$5.10****$4.95****$4.92****$5.04****$4.99****$5.00** *Income from investment operations*         Net Investment Income 0.13 0.26 0.27 0.26  0.27  0.27  Net gains or losses on securities        (both realized and unrealized) (0.01) 0.14 0.03 (0.12) 0.05  (0.01)Total from investment operations  0.12 0.40 0.30 0.14  0.32  0.26  *Less distributions*       Dividends (from net investment income) (0.13) (0.25) (0.27) (0.26) (0.27) (0.27) Distributions (from capital gains) - - - - - -Total distributions  (0.13) (0.25) (0.27) (0.26) (0.27) (0.27)**Net asset value at end of period** **$5.09****$5.10****$4.95****$4.92****$5.04****$4.99****Total Return** **2.39%****8.37%****6.20%****2.88%****6.67%****5.45%**Ratios / Supplemental Data       Net assets ($000), end of period $2,150$2,189$2,555$1,795 $1,908 $2,508 Ratio of expenses to average net assets* 0.37%0.51%0.61%0.47%0.48%0.60%Ratio of net investment income to average net assets* 2.56%5.45%5.45%5.22%5.57%5.58%**Portfolio turnover rate** **17%****28%****12%****21%****71%****47%***For the above periods, 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 netaccost        would be .16%, .43%, .41%, .57%, .44%, and .40%respectively.
   
**STATEMENT OFASSETS          AND LIABILITIES**
*As    of May 31, 2002***Assets**     Investments (Cost $1,936,313)  $2,002,989  Cash  120,140  Interest Receivable  31,830   Total Assets   $2,154,959**Liabilities**     Other Liabilities  4,558   Total Liabilities  4,558**Net Assets**   $2,150,401     **Fund Shares Outstanding**    422,404     **Analysis of Net Assets**     Paid in Capital (unlimited shares authorized, without par        value) 2,114,120   Undistributed net investment income 1,468  Accumulated net realized loss on investments  (31,863)  Unrealized net appreciation to Fund sharesoutstanding 66,676   Net Assets applicable to Fund shares outstanding   $2,150,401     **Net Asset Value, Offering and Redemption price pershare**   $5.09
*(The accompanying notes are an integral part of thesefinancial    statements)*
*4* *May 31, 2002          Semi-Annual Report*(Graphic        Omitted)**SEXTANTSHORT-TERM        BOND FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31,2002***Investment Income**    Interest income$68,060  Amortization of bond premium(5,783)  Accretion176   Gross investment income $62,453    **Expenses**    Investment Advisor and administration fee6,733  Professional fees1,657  Custodian fees1,053  Meetings531  Insurance464  Filing and registration fees460  Printing and postage 409  Other expenses175   Total gross expenses11,482  Less: Advisory fees waived(2,517)  Less: Custodian fees waived(1,053)   Net expenses  7,912  Net Investment income 54,541    **Net realized gain (loss) on investments**    Proceeds from sales404,863  Less: Cost of securities sold (based on identifiedcost)401,414   Realized net gain 3,449    **Unrealized gain on investments**    End of period66,676  Beginning of period75,853  Decrease in unrealized gain for the period (9,177)  Net realized and unrealized loss on investments (5,728)   **Net increase in net assets resulting fromoperations** **$48,813****STATEMENT OFCHANGES        IN NET ASSETS** 
****  **Period ended****Year ended**  **May 31, 2002****Nov. 30, 2001****DECREASE IN NET ASSETS**   **From Operations:**    Net investment income $54,541 $116,659 Net realized (gain) loss on investments3,449(14,763) Net increase (decrease) in unrealized appreciation(9,177)80,934 Net increase in net assets from operations 48,813 182,830    **Dividends to shareowners from:**    Net investment income(54,558)(114,823) Capital gains distributions--  Total Distributions(54,558)(114,823)    **Fund share transactions**    Proceeds from sales of shares178,325351,703 Value of shares issued in reinvestment of dividends54,260113,922  232,585465,625 Cost of shares redeemed(265,300)(899,416) Net decrease in net assets from share transactions(32,715)(433,791)**Total decrease in net assets** **$(38,460)****$(365,784)****NET ASSETS**    Beginning of period2,188,8612,554,645 End of period$2,150,401$2,188,861**Shares of the fund sold and redeemed**    Number of shares sold35,10270,340 Number of shares issued in reinvestment of dividends10,68922,596  45,79192,936 Number of shares redeemed(52,470)(180,306)**Net decrease in number of shares outstanding** **(6,679)****(87,370)**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*May 31, 2002Semi-Annual        Report* *5***INVESTMENTS** 
**SEXTANT BONDINCOME          FUND**(Graphic          Omitted)**Rating****Issuer********Coupon/Maturity****Face Amount****Market Value**     As of May 31, 2002 ***Banking (10.7%)***    A+Chase Manhattan 7.125% 6/15/2009$50,000 $50,735ACiticorp 7.25% 10/15/201150,000 53,715A-Comerica Bank 7.125% 12/1/201350,000 49,158A+Norwest Financial 6.85% 7/15/2009 50,000  52,595 *SUB-TOTAL*  200,000 206,203       ***Building Products (3.7%)***    BBB+Masco  7.125% 8/15/201360,00062,310 ***Chemicals (3.1%)***    A-Air Products & Chemicals 8.75% 4/15/202150,00060,420 ***Diversified Financial Services (3.6%)***    AAAGeneral Electric Capital  8.125% 5/15/201260,00069,396 ***Electric Utilities (5.2%)***    AAlabama Power 7.75% 2/1/202348,00047,448A-Commonwealth Edison  7.50% 7/1/2013 50,000  52,780 *SUB-TOTAL*   98,000 100,228       ***Electronics (2.6%)***    A-Koninlijke Phillips Electronics  7.25% 8/15/2013 50,000  50,110       ***Food (9.5%)***    BBB+Conagra 7.875% 9/15/201050,00054,925A+Hershey Foods Co. 6.95% 8/15/201250,00052,970A-HJ Heinz  6.00% 3/15/201275,00074,520 *SUB-TOTAL*  175,000182,415       ***Insurance (6.8%)***    AAllstate 7.50% 6/15/2013 50,000  54,500AProgressive 7.00% 10/1/201375,00076,882 *SUB-TOTAL*  125,000131,382       ***Investment Finance (5.5%)***    AA-Morgan Stanley Dean Witter 6.75% 10/15/2013 50,000  50,785BBB+Paine Webber Group 7.625% 2/15/2014 50,000  54,855 *SUB-TOTAL*   100,000  105,640       ***Machinery (2.5%)***    ACaterpillar Inc. 9.375% 8/15/2011 40,000 47,844
 
*6* *May 31, 2002          Semi-Annual Report*(Graphic        Omitted)**SEXTANT        BOND INCOME FUND** 
**INVESTMENTS****Rating****Issuer********Coupon/Maturity****Face Amount****Market Value** ***Medical Supplies (2.2%)***    A+Becton Dickinson 7.15% 10/1/2009 40,000  42,796       ***Oil & Gas (9%)***    BBBCoastal Energy 9.625% 5/15/201265,00072,605ANorsk Hydro A/S (Yankee) 7.50% 10/1/201650,00055,170ATexaco Capital 8.625% 6/30/2010 40,000  45,436 *SUB-TOTAL*  155,000173,211       ***Retailing (11.7%)***    ADayton Hudson (Target Stores) 10.00% 1/1/201150,00063,830ALowes Companies 8.25% 6/1/201050,00056,910A+May Department Stores Corp. 8.00% 7/15/201250,00055,860AAWal-Mart Stores 7.25% 6/1/201345,00049,842 *SUB-TOTAL*  195,000226,442       ***Telecommunications (2.7%)***    AA-GTE 6.90% 11/1/2008 50,000  52,410       ***Transportation (9.3%)***    AGeneral Motors 7.70% 4/15/201650,00053,585BBB+Southwest Airlines 6.50% 3/1/201275,00075,105A-US Freightways  8.5% 4/25/2010 50,000  51,054 *SUB-TOTAL*  175,000179,744       ***US Government (7.8%)***    AAAUS Treasury Bond 7.25% 5/15/2016130,000150,917***Total Investments (95.4%)***  (Cost = $1,795,016)$1,703,000 1,841,468Other Assets (net of liabilities) (4.6%)    89,201***Total Net Assets (100%)***    **$1,930,669**
**Ratings are the lesser of S&P orMoody's    (unaudited)*
*May 31, 2002Semi-Annual        Report* *7*******FINANCIAL HIGHLIGHTS** 
**SEXTANT BONDINCOME          FUND**(graphic          omitted)Selected data per share of capital stock outstandingthroughout        the period:        Period ended For the year ended November 30,   May 31, 200220012000199919981997**Net asset value at beginning of period** **$4.81****$4.56****$4.59****$5.00****$4.83****$4.76** *Income from investment operations*       Net investment income 0.15 0.30 0.29 0.30  0.29  0.30  Net gains or losses on securities         (both realized and unrealized) (0.01) 0.25 (0.03) (0.41) 0.17  0.07 Total from investment operations  0.14 0.55 0.26 (0.11) 0.46  0.37  *Less distributions*       Dividends (from net investment income)        Taxable (0.14) (0.30) (0.29) (0.30) (0.29) (0.30) Distributions (from capital gains) - - - - - -Total distributions  (0.14) (0.30) (0.29) (0.30) (0.29) (0.30)**Net asset value at end of period** **$4.81****$4.81****$4.56****$4.59****$5.00****$4.83****Total return** **2.94%****12.40%****6.05%****(2.20)%****10.08%****8.24%**Ratios/supplemental data       Net assets ($000), end of period  $1,931 $1,965 $1,505 $885  $1,345 $1,092 Ratio of expenses to average net assets* 0.30%0.34%0.35%0.40%0.30%0.47%Ratio of net investment income to average net assets* 2.93%6.71%6.58%6.31%6.24%6.85%**Portfolio turnover rate********8%****30%****0%****0%****51%****75%**         *For each of the above periods, all or a portion of the        operating expenses were waived. If these costs had not been waived,the        increase to the ratio of expenses to average monthly net assets would        be .19%, .72%, .64%, .66%, .61%, and .63%.
**STATEMENT OFASSETS          AND LIABILITIES***As of May 31, 2002*   **Assets**    Bond Investments (Cost $1,795,016)$1,841,468  Cash58,252  Interest Receivable32,308  Insurance Reserve Premium1,221   Total Assets $1,933,249    **Liabilities**    Other Liabilities2,580   Total Liabilities 2,580**Net Assets**  $1,930,669   ******Fund Shares Outstanding**   401,617    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par        value)1,977,129  Accumulated net realized loss on investments(92,913)  Unrealized net appreciation to Fund sharesoutstanding46,453   Net Assets applicable to Fund shares outstanding $1,930,669**Net Asset Value, Offering and Redemption price pershare**  $4.81
*(The accompanying notes are an integral part of thesefinancial    statements)*
*8* *May 31, 2002          Semi-Annual Report*(graphicomitted)**SEXTANT BOND INCOME FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31,2002***Investment Income**    Interest income$65,003  Amortization of bond premium(3,372)   Gross investment income  $61,631**Expenses**    Investment advisor and administration fee5,777  Professional fees1,585  Filing and registration fees458  Custodian fees385  Meetings378  Printing and postage344  Insurance329  Other expenses156   Total gross expenses9,412  Less: Advisor fees waived(3,280)  Less: Custodian fees waived(385)   Net expenses 5,747  Net investment income  55,884**Net realized loss on investments**    Proceeds from sales179,411  Less: Cost of securities sold based on identified cost182,663   Realized net loss  (3,252)**Unrealized gain on investments**    End of period46,453  Beginning of period48,912  Decrease in unrealized loss for the period  (2,459)  Net realized and unrealized loss on investments  (5,711)**Net increase in net assets resulting fromoperations**  **$50,173**
**STATEMENT OFCHANGES        IN NET ASSETS**  **Period ended****Year ended****INCREASE (DECREASE) IN NET ASSETS** **May 31, 2002****Nov. 30, 2001****From Operations:**    Net investment income  $55,884 $104,689 Net realized loss on investments(3,252)(2,114) Net increase (decrease) in unrealized appreciation(2,459)89,413 Net increase in net assets from operations 50,173 191,988    **Dividends to shareowners from:**    Net investment income(55,898)(104,689) Capital gains distributions--  Total Distributions(55,898)(104,689)    **Fund share transactions**    Proceeds from sales of shares170,839578,938 Value of shares issued in reinvestment of dividends54,982103,332  225,821682,270 Cost of shares redeemed(254,013)(310,083) Net increase (decrease) in net assets from sharetransactions(28,192)372,187**Total increase (decrease) in net assets** **$(33,917)****$459,486****NET ASSETS**    Beginning of period1,964,5861,505,100 End of period $1,930,669 $1,964,586    **Shares of the fund sold and redeemed**    Number of shares sold35,760121,443 Number of shares issued in reinvestment of dividends11,53321,787  47,293143,230 Number of shares redeemed(53,743)(65,605)**Net increase (decrease) in number of sharesoutstanding****(6,450)****77,625**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*May 31, 2002Semi-Annual        Report* *9*****INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)**Issue****Number of Shares****Cost****Market Value**    As of May 31, 2002 **Common Stocks (87.9%)**         ***Banking (14%)***    Convergys3.500$129,041$91,840 Frontier Financial 4,000  90,207  115,680 JP Morgan Chase & Co.1,50085,43353,925 Washington Mutual 6,750 44,124 262,372 *SUB-TOTAL*  348,805 523,817      ***Computers (15.8%)***    Adobe Systems 4,800 50,490 173,280 Apple Computer* 5,500 102,348 128,150 Intuit* 3,000 131,758 131,190 3Com* 10,000 51,891 55,600 Oracle*  8,000 28,059 63,200 Phoenix Technologies Ltd.* 3,06229,14838,888 SUB-TOTAL  393,694 590,308      ***Construction (10.2%)***    Building Materials Holding Corp.* 4,000  44,171  61,320 Lowes Companies4,000135,141188,640 Weyerhaeuser 2,000  93,867 131,000 SUB-TOTAL  273,179 380,960      ***Electronics (1.7%)***    Agilent Technologies*1,20057,82831,644 Intel1,20081,33733,144  SUB-TOTAL   139,165 64,788      ***Hotels & Motels (3%)***    Westcoast Hospitality* 15,000 111,772 110,850      ***Investments (8.4%)***    Neuberger Berman1,50080,10565,295 Schwab (Charles) 20,415  9,117  247,634  SUB-TOTAL   89,222 312,929 ***Machinery (1.3%)***    Regal-Beloit 2,000 52,106 50,400 **10** *May 31, 2002          Semi-Annual Report***(graphic omitted)**SEXTANT      GROWTH FUND** **INVESTMENTS**)**Issue****Number of Shares****Cost****Market Value** ***Medical (20.4%)***    Affymetrix* 2,000  26,862 47,900 Barr Laboratories2,000159,489133,080 Caremark Rx3,00060,12558,020 Immunex* 6,000 34,598 151,440 Ligand Pharmaceuticals* 5,000  56,429 90,800 Lilly (Eli) 800 77,567 51,760 Pharmaceutical Product Development* 9,000 80,608 228,600 *SUB-TOTAL*  495,678 761,600      ***Metal Ores (1.4%)***    Phelps Dodge 1,330  76,218  51,870      ***Oil & Gas Production (3.2%)***    Noble* 2,000  14,212  85,400 Williams Companies 2,500  73,415 35,500 *SUB-TOTAL*  87,627 120,900      ***Publishing (1.7%)***    Wiley (John) & Sons, Class A* 2,400  47,112  61,824      ***Telecommunications (.7%)***    Leap Wireless10,00081,95824,900      ***Transportation (6.2%)***    Airborne Inc. 5,000 60,308 112,850 Southwest Airlines6,00090,162102,180 Trinity Industries 800  22,657 15,000 *SUB-TOTAL*  173,127 230,030      ***Total Investments (87.9%)*** $2,369,665 3,285,176 Other Assets (net of liabilities) (12.1%)   454,320 ***Total Net Assets (100%)***  **$3,739,496**      **Non-income producing*    *May 31, 2002Semi-Annual      Report* *11*
**FINANCIALHIGHLIGHTS****** 
**SEXTANT GROWTHFUND**(graphicomitted)****Selected data per share of capital stock outstandingthroughout      the period:       Period ended  For the year ended Nov 30,  May 31, 200220012000199919981997**Net asset value at beginning of period** **$11.90****$13.16****$12.68****$9.29****$9.58****$7.92** *Income from investment operations*       Net investment income (0.02) (0.02) (0.07) (0.06) 0.02  0.01  Net gains or losses on securities         (both realized and unrealized) (0.05) (1.24) 1.36 4.26  (0.09) 2.41 Total from investment operations  (0.07) (1.26) 1.29 4.20  (0.07) 2.40  *Less distributions*       Dividends (from net investment income) - - - (0.14) (0.02) (0.01) Distributions (from capital gains) - - (0.81) (0.67) (0.20) (0.73)Total distributions  - - (0.81) (0.81) (0.22) (0.74)**Net asset value at end of period** **$11.83****$11.90****$13.16****$12.68****$9.29****$9.58****Total Return** **(0.01%)****(9.57)%****10.16%****44.76%****(0.97)%****30.30%**Ratios / Supplemental Data       Net assets ($000), end of period $3,739$3,792$3,862$3,116 $2,139 $2,188 Ratio of expenses to average net assets 0.50%0.78%1.05%1.12%0.66%1.04%Ratio of net investment income to average net assets (0.20)%(0.18)%(0.51)%(0.50)%0.19%(0.12)%**Portfolio turnover rate** 11%8%20%28%41%25%
**STATEMENT OF ASSETS        AND LIABILITIES***As of May 31, 2002*       **Assets**    Investments (Cost $2,369,665)$3,285,176  Cash457,119  Dividends Receivable1,192  Insurance Reserve Premium1,214   Total Assets 3,744,701    **Liabilities**    Other Liabilities5,205   Total Liabilities 5,205    **Net Assets**  $3,739,496    **Fund Shares Outstanding**  316,041    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par      value)$2,573,738  Accumulated net realized gain on investments250,247  Unrealized net appreciation to Fund shares outstanding915,511  Net Assets applicable to Fund shares outstanding  $3,739,496   **Net Asset Value, Offering and Redemption price pershare**  $11.83*(The accompanying notes are an integral part of these financialstatements)***12** *May 31, 2002        Semi-Annual Report*(graphicomitted)**SEXTANT GROWTH FUND** 
**STATEMENT OFOPERATIONS**
*For the Semi-Annual period ended May 31, 2002*
     **Investment Income**     Dividend income $11,323  Miscellaneous income 25   Gross Investment Income   $11,348     **Expenses**     Investment Advisor and administration fee 13,501  Professional fees 2,195  Custodian fees 1,141  Filing and registration 1,055  Meetings 818  Insurance 628  Printing and postage 615  Other expenses 261   Total gross expenses 20,214  Less: Custodian fees waived (1,141)   Net expenses  19,073  Net investment loss   (7,725)     **Net realized gain on investments**     Proceeds from sales 387,358  Less: cost of securities sold based on identified cost 145,508   Realized net gain  241,850     **Unrealized gain on investments**     End of period 915,511  Beginning of period 1,172,350  Decrease in unrealized gain for the period  (256,839)  Net realized and unrealized loss on investments  (14,989)    **Net decrease in net assets resulting fromoperations**   **$(22,714)****STATEMENT      OF CHANGES IN NET ASSETS** 
********  **Period ended****Year ended**  **May 31, 2002****Nov. 30, 2001****INCREASE (DECREASE) IN NET ASSETS**   **From Operations:**    Net investment loss $(7,725) $(6,671) Net realized gain (loss) on investments241,850(49,719) Net decrease in unrealized appreciation(256,839)(304,455) Net decrease in net assets from operations (22,714) (360,845)    **Dividends to shareowners from:**    Net investment income-- Capital gains distributions-- Total Distributions--    **Fund share transactions**    Proceeds from sales of shares216,320603,793 Value of shares issued in reinvestment of dividends--  216,320603,793 Cost of shares redeemed(245,623)(313,737) Net increase (decrease) in net assets from sharetransactions(29,303)290,056**Total decrease in net assets** **$(52,017)****$(70,789)**    **NET ASSETS**    Beginning of period3,791,5133,862,302 End of period$3,739,496$3,791,513    **Shares of the fund sold and redeemed**    Number of shares sold18,89150,805 Number of shares issued in reinvestment of dividends--  18,89150,805 Number of shares redeemed(21,570)(25,630)**Net increase (decrease) in number of sharesoutstanding** **(2,679)****25,175**
*(The accompanying notes are an integral part of these financialstatements)*
***May        31, 2002 Semi-Annual Report*** ****13********INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)**Issue****Number of Shares****Cost****Market Value****Country**    As of May 31, 2002**Common Stocks (85%)**         ***Aircraft (3%)***    Embraer Aircraft ADR1,713$38,169$40,427Brazil     ***Banking and Financial (10.4%)***    Aegon NV ADR1,23811,51226,592NetherlandsAXA ADS1,00031,16519,620FranceBanco Bilbao Vizcaya ADS1,8007,70221,942SpainING Groep ADS1,40036,13437,072NetherlandsToronto-Dominion Bank1,40018,15935,476Canada*SUB-TOTAL* 104,672140,702      ***Building Materials (4.9%)***    C R H plc ADR2,00023,07534,900IrelandHanson plc ADR80024,57430,800UK*SUB-TOTAL* 47,64965,700      ***Computers (13.9%)***    Business Objects ADS*6,00019,570171,180FranceDassault Systems ADR40013,87516,320France*SUB-TOTAL* 33,445187,500      ***Consumer Products (4.3%)***    Coca-Cola Femsa ADS1,5009,75038,250MexicoGucci Group20010,92519,810Italy*SUB-TOTAL* 20,67558,060      ***Country Funds (.9%)***    New Ireland Fund1,08212,62612,064Ireland     ***Electronics (3.2%)***    Epcos AG ADS50034,20619,505GermanySony ADR40032,23723,244Japan*SUB-TOTAL* 66,44342,749      ***Hotels & Motels (.6%)***    Fairmont Hotels & Resorts3003,7318,421Canada     ***Medical-Drugs (3.8%)***    Aventis ADS50815,85935,418FranceGlaxo Wellcome plc ADR4009,80016,300UK*SUB-TOTAL* 25,65951,718      ***Metals & Mining (4.4%)***    Potash Corp of Saskatchewan30021,16420,115CanadaRio Tinto plc ADS50031,17538,605UK*SUB-TOTAL* 52,33958,720      ***Oil & Gas Production (4.9%)***    Petroleum Geo-Services ADS*1,00010,9794,120NorwayRepsol-YPF ADR2,00043,59223,680SpainTotal Fina Elf ADR50021,86438,835France*SUB-TOTAL* 76,43566,635 
**14** *May 31, 2002        Semi-Annual Report*(Graphic      Omitted)**SEXTANT      INTERNATIONAL FUND** 
**INVESTMENTS****Issue****Number of Shares****Cost****Market Value****Country**     ***Paper Products (5.2%)***    Metso ADS2,10022,80229,925FinlandUPM-Kymmene Oyj1,00034,39939,600Finland*SUB-TOTAL* 57,20169,525      ***Photographic Equipment (3.8%)***    Canon ADR 1,00023,42738,800JapanFuji Photo Film ADR40010,05012,740Japan*SUB-TOTAL* 33,47751,540      ***Real Estate (3.2%)***    Intrawest 2,40041,34143,104Canada     ***Telecommunications (8.3%)***    American Movil2,00029,72534,980MexicoBCE90015,83016,659CanadaBritish Sky Broadcasting ADS30011,06319,350UKNortel Networks*1,41282,9683,121CanadaPT Indosat ADR1,00020,95213,420IndonesiaTele Norte Leste Participacoes ADR3356,9334,244BrazilTelefonica ADS*56412,05817,710SpainTelesp Celular Participacoes ADR50024,8952,720Brazil*SUB-TOTAL* 204,424112,204      ***Transportation (4.5%)***    Canadian Pacific Ltd.6007,98513,512CanadaDesc ADR2,70042,98133,480MexicoLan Chile ADS2,50018,84514.025Chile*SUB-TOTAL* 69,81161,017      ***Utilities (5.7%)***    Enel ADR80035,37223,720ItalyEnersis ADR*1,10324,6768,658ChileFording1,00015,17020,900CanadaKorea Electric Power ADS2,00031,96123,060KoreaTransport de Gas del Sur ADR1,50018,8081,230Argentina*SUB-TOTAL* 125,98777,568      ***Total Investments (85%)*** $1,014,0841,147,654 Other Assets (net of liabilities) (15%)  197,500 ***Total Net Assets (100%)***  **$1,345,154**      ** Non-income producing*    *May 31, 2002Semi-Annual      Report* *15***FINANCIAL HIGHLIGHTS** **SEXTANTINTERNATIONAL          FUND**(graphic          omitted)Selected data per share of capital stock outstanding            throughout the period:         For the year ended November 30,   
Period endedMay 31, 2002
20012000199919981997**Net asset value at beginning of period** **$7.24****$8.52****$8.32****$6.81****$6.61****$5.87** *Income from investment operations*       Net investment income 0.01 0.04 0.43 0.13  0.04  0.06  Net gains or losses on securities (both            realized and unrealized) 0.05 (1.30) 0.20 1.57  0.20  0.74 Total from investment operations  0.06 (1.26) 0.63 1.70  0.24  0.80  *Less distributions*       Dividends (from net investment income) - (0.02) (0.43) (0.12) (0.04) (0.06) Distributions (from capital gains) - - - (0.07) - -Total distributions  - (0.02) (0.43) (0.19) (0.04) (0.06)**Net asset value at end of period** **$7.30****$7.24****$8.52****$8.32****$6.81****$6.61****Total return** **0.83%****(14.80)%****7.62%****24.90%****3.57%****13.58%**Ratios/supplemental data       Net assets ($000), end of period $1,345$1,445$1,736$1,162 $881 $881 Ratio of expenses to average net assets 0.68%1.17%1.20%0.72%1.16%1.51%Ratio of net investment income to average netassets 0.13%0.34%4.74%1.74%0.54%0.93%**Portfolio turnover rate********2%****6%****11%****17%****18%****9%**        
**STATEMENT OF              ASSETS AND LIABILITIES******    *As of May 31, 2002*       **Assets**     Investments (Cost $1,014,084) $1,147,654  Cash 199,933  Dividends Receivable 1,595   Total Assets  $1,349,182    **Liabilities**    Other Liabilities 4,028  Total Liabilities 4,028    **Net Assets**  $1,345,154   ******Fund Shares Outstanding**  184,330    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without            par value) 1,273,252  Accumulated net realized loss on investments (61,668)  Unrealized net appreciation to Fund sharesoutstanding133,570   Net Assets applicable to Fund shares outstanding $1,345,154    **Net Asset Value, Offering and Redemption price per            share**  $7.30*(The accompanying notes are an integral part of these financialstatements)***16** *May 31,              2002 Semi-Annual Report*(Graphic            Omitted)**SEXTANT            INTERNATIONAL FUND** 
**STATEMENT              OF OPERATIONS**
*For the Semi-Annual period ended May 31,2002*
    **Investment Income**    Dividend income (net Foreign Tax of $1,845)$11,303   Gross investment income  $11,303**Expenses**    Investment Advisor and administration fee 5,559  Filing and registration fees 1,463  Professional fees 1,321  Custodian fees 1,187  Meetings377  Insurance303  Printing and postage 296  Other expenses160  Total gross expenses 10,666  Less: Custodian fees waived (1,187)   Net expenses 9,479  Net investment income  1,824**Net realized gain on investments**    Proceeds from sales 25,100  Less: Cost of securities sold based on identifiedcost12,262   Realized net gain 12,838**Unrealized gain on investments**    End of period 133,570  Beginning of period135,270  Decrease in unrealized gain for the period  (1,700)  Net realized and unrealized gain on investments  11,138    **Net increase in net assets resulting fromoperations** **$12,962************
**STATEMENT OF              CHANGES IN NET ASSETS**  Period endedYear ended  May 31, 2002Nov. 30, 2001**INCREASE (DECREASE) IN NET ASSETS**   **From Operations:**    Net investment income  $1,824 $5,248 Net realized gain (loss) on investments 12,838 (72,856) Net decrease in unrealized appreciation (1,700) (189,831) Net increase (decrease) in net assets fromoperations 12,962 (257,439)    **Dividends to shareowners from:**    Net investment income - (3,779) Capital gains distributions - - Total Distributions - (3,779)    **Fund share transactions**    Proceeds from sales of shares 20,249 120,139 Value of shares issued in reinvestment ofdividends - 3,752   20,249 123,891 Cost of shares redeemed(132,877)(154,296) Net decrease in net assets from sharetransactions (112,628) (30,405)**Total decrease in net assets** **$(99,666)****$(291,623)**    **NET ASSETS**    Beginning of period 1,444,820 1,736,443 End of period $1,345,154 $1,444,820    **Shares of the fund sold and redeemed**    Number of shares sold 2,702 14,929 Number of shares issued in reinvestment ofdividends - 518   2,702 15,447 Number of shares redeemed (17,831) (19,782)**Net decrease in number of sharesoutstanding** **(15,129)****(4,335)**
 
*(The accompanying notes are an integral part ofthese          financial statements)****May              31, 2002 Semi-AnnualReport*** *17*
**ADDITIONAL                PERFORMANCE INFORMATION**Average Annual              Returns (as of 6/30/2002, per regulatory requirement)  1                year 5                years10 years(Graphic Omitted)            Sextant Growth Fund-9.79%            7.51%            8.80%             Sextant International Fund-8.68%            2.02%            6.43%*Sextant Short-Term Bond Fund7.77%6.14% 5.79%*Sextant Bond Income Fund10.63%7.57%5.83%**
*Since inception, 9/28/95
**since inception, 3/1/93
Performance data quoted in this report represents past          performance, is before any taxes that may be payable by investors, and          is no guarantee of future performance. The investment return andprincipal          value of investments in the Funds fluctuate daily, and aninvestor’s          shares when redeemed may be worth more or less than the original cost.          Morningstar, Inc. is an independent fund performance monitor. Theaverage          total return for a category is determined by Saturna Capital,utilizing          the Morningstar database. Results are shown for twelve months in this          report because of the Sextant Funds performance fee advisorystructure.
**NOTES                TO FINANCIAL STATEMENTS**
**Organization**          Saturna Investment Trust (the “Trust”) was established under          Washington State Law as a Business Trust on February 20, 1987. TheTrust          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 aseparate          report.**Unaudited Information**          The information in this interim report has not been subject toindependent          audit.**Significant AccountingPolicies**          The following is a summary of the significant accounting policiesfollowed          by the Funds.**Investments:**          Securities traded on a national exchange or the nationalover-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 andsimilar          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 for bonds underwritten as original          
*18* *May 31,              2002 Semi-Annual Report*          issue discounts and/or purchased at market discounts. 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 dailyaverage          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.Therefore,          no provision for Federal income taxes is required.**Dividends and distributions to shareowners:**          Dividends and distributions to shareowners are recorded on theex-dividend          date. For the Sextant Short-Term Bond Fund and Sextant Bond IncomeFund,          dividends are paid daily and distributed on the last business day of          each month. For the Sextant Growth Fund and Sextant InternationalFund,          dividends are payable at the end of each November. Shareownerselecting          to reinvest dividends and distributions purchase additional shares at          the net asset value on the payable date. **Transactions with AffiliatedPersons**          Under a contract approved by shareowners on September 28, 1995,Saturna          Capital Corporation provides investment advisory services, pluscertain          administrative and shareowner services to the Funds. Each of the Funds          pays the Adviser a base Investment Advisory and AdministrativeServices          Fee of .60% of average net assets per annum, payable monthly. The base          Advisory Fee is subject to adjustment up or down depending on theinvestment          performance of the Fund relative to a specified Morningstar mutualfund          category average. The Adviser has voluntarily undertaken to limitexpenses          of Sextant Bond Income Fund and Sextant Short-Term Bond Fund to 0.60%          through March 31, 2003 and waives its investment advisory andadministrative          fee as to either Fund completely so long as assets of that Fund are          less than $2 million.          For the six months ended May 31, 2002, Sextant Bond Income Fund and          Sextant Growth Fund incurred advisory expenses of $5,777 and $13,501,          respectively. Sextant International Fund incurred advisory expenses          of $5,559 and Sextant Short-Term Bond Fund incurred advisory expenses          of $6,733.          In accordance with the expense waiver noted above, for the six months          ended May 31, 2002, Saturna Capital waived $2,517 of the SextantShort-Term          Bond Fund advisory fee and $3,280 of that of Sextant Bond IncomeFund.          Investors National Corporation (a broker-dealer subsidiary of Saturna          Capital) acts as underwriter for the Trust, without compensation. The          Funds’ custodian, National City Bank Indiana, waived its fees for          earnings credits.          Investors National Corporation is the primary stockbroker used toeffect          portfolio transactions for Sextant Growth Fund and SextantInternational          Fund, and was paid $1,486 and $222, respectively in commissions atdiscount          rates during the six months ended May 31, 2002.           One trustee is also a director and officer of Saturna CapitalCorporation.          The unaffiliated trustees receive a fee of $100 per meeting attended,          and in the six months ending May 31, 2002, such fees totalled $700 for          the Trust.**Investments**          At May 30, 2002, the net unrealized gain on investments for BondIncome,          Short-Term Bond, Growth and International were $46,453, $66,676,$915,511,          and $133,570, which consist of unrealized gains of $61,423, $66,855,          $1,273,955, and $390,723, and unrealized losses of $14,970, $179,$358,444,          and $257,153, respectively.          During the six months ended May 30, 2002, Bond Income purchased$148,607          of securities and sold $179,411. Comparable figures for Short-TermBond          are $346,760 purchased and $404,863 sold; for Growth $357,506 and$387,358;          and for International, $43,559 and $25,100.*May 31, 2002              Semi-Annual Report* *19*
**Web: http://www.saturna.com                  E-mail: sextant@saturna.com**

 

 

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Thisreport                  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 effectiveprospectus                  relating to the securities of the Fund. Idaho Tax-Exempt Fund                  is a series of Saturna Investment Trust.

 
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**SEMI-ANNUAL                          REPORT****May 31, 2002**

  

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