December 1, 2010

  To: **Trustees of Amana Mutual Funds Trust and Saturna Investment Trust**  Re: **Proposed Fidelity Bond and D&O/E&O Annual Premium Allocations**  From: **Saturna Capital**  Annually, the Trustees must review continuation of the existing Rule 17g-1 fidelity  bond coverage. We filed the application for the annual renewal to ICI Mutual  (ICIM) for the Funds' fidelity bond and D&O/E&O coverage, and were given  the coverage for which we applied.  Policy limits and deductibles are unchanged from last year. The D&O/E&O  limit remains at $3 million with a deductible of $300,000. Due to Amana Trust's  growth past $3 Billion in total assets, the fidelity bond coverage has increased  from $2,610,000 to $2,810,000. The individual coverage requirement for each  entity is shown in Table 1 below.

The fidelity bond premium has increased $750 from $20,250 last year to $21,000.  The parties have historically allocated the premium according to the proportion  of each insured's required coverage to the total bond coverage. Using this method,  the bond premium allocation is show below in Table 1.  The D&O/E&O premium has decreased approximately 5% from last year from  $110,000 to $105,000. The allocation applies an approximately 18% discount to  quoted premiums received from ICI Mutual for individual policies of appropriate  size for each entity. The individually quoted policy sizes were $3MM for Amana,  and $1MM for each of Saturna Investment Trust and Saturna Capital, including  its subsidiaries, Saturna Brokerage Services and Saturna Trust Company. The  D&O/E&O allocation is show below in Table 2.

We have indicated acceptance of the policies, subject to your ratification  of payment at this meeting. Attatched is a letter from ICI Mutual discussing  the indvidual D&O/E&O policy quote and confirming that the total premium  for the bond and policy coverage allocated to each investment company is less  than the premium such company would have to pay if it purchased separate policies.  

| **Table 1. Fidelity Bond Premium Allocation** |
|-----------------------------------------------|
| **Insured**                                   | **17(g)-1 Bracket** | **Coverage         Requirement** | **Percentage of         Total Bond** | **Bond Premium** |
| Amana Mutual Funds Trust                      | $3-3.5 Billion | $1,900,000 | 67.60% | $14,196 |
| Saturna Investment Trust                      | $150-250 Million | $600,000 | 21.40% | $4,494 |
| Saturna Capital                               |  | $250,000 | 8.90% | $1,869 |
| Saturna Brokerage                             |  | $60,000 | 2.10% | $441 |
|                                          |   | $2,810,000 | 100.00% | $21,000 |

| **Table 2. D&O/E&O Policy Premium Allocation** |
|--------------------------------------------------------|
| **Insured**                                            | **Individual        Policy Limit** | **Individual        Policy Quote** | **Joint Policy        Discount (~18%)** | **Policy Premium** |
| Amana Mutual Funds Trust                               | $3,000,000 | $72,000 | $13,167 | $58,833 |
| Saturna Investment Trust                               | $1,000,000 | $23,500 | $4,298 | $19,202 |
| Saturna Capital                                        | $1,000,000 | $33,000 | $6,035 | $26,965 |
|                                                   |   | $128,500 | $23,500 | $105,000 |