Idaho Tax-Exempt Fund   Annual Report
We are greatly pleased to inform you that  Morningstar  Mutual Funds has awarded
your Fund its coveted  five-star rating as of November 30, 1995. The Morningstar
rating is a widely respected measure of risk-adjusted performance.* We are proud
of this accomplishment and work hard to continue the Fund's to performance.

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.  In the
fiscal  year just ended,  your Fund  brought  you a total  return of 16.68%.  At
November 30, the 30-day yield on your Fund was 4.6%, tax-free.

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.  For  bond
investors,  we continue to believe this trend means slow growth and low interest
rates.

During 1995,  concerns over the  possibility of a flat (or at least flatter) tax
structure put some pressure on bond prices by increasing the return that holders
of municipal bonds demanded.  This phenomenon produced an opportunity for buying
quality bonds cheaply. We capitalized on that opportunity when we could.

The Fund remains  conservative in approach,  positioned to serve as an anchor in
your  investment  portfolio.  We employ no leverage,  purchase no derivatives or
employ any other risk-enhancing techniques.

Our staff and portfolio  managers always welcome your comments and  suggestions.
Only  with your  help can we be  certain  that we are  meeting  your  investment
needs--our primary objective. We appreciate your investing with us.

   With best wishes for the New Year,

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


------------------
*Morningstar's proprietary ratings reflect historical risk-adjusted performance.
The ratings are subject to change each month, and are calculated from a fund's 3
and 5-year average annual returns with sales charge  adjustments  (if any) and a
risk factor that  reflects  performance  relative to three month  Treasury  bill
returns. Ten per cent of the funds in a Morningstar  investment category receive
five stars. From time to time the adviser has waived all or a portion of fees or
expenses, resulting in higher returns.
Naturally, past performance may not indicate future results.
<TABLE>

Investments
November 30, 1995

Rating     Issuer                                     Coupon/Maturity          Face Amount      Market Value
-------------------------------------------------------------------------------------------------------------
                                                                                                         ----

General Obligation (2.0)%
<S>                                                <C>                        <C>               <C>     
    A      Bannock County Jail Bond                6.00% due 9/1/2012         $100,000          $105,966

Housing (11.6%)
    AA     Idaho Housing Authority
           Single Fam Mortgage, B-1                6.85% due 7/1/2012          110,000           114,695
    AA     Idaho Housing Authority
           Refunding Ser A                         6.15% due 7/1/2024          250,000           257,950
    AA     Idaho Housing Authority
           Single Fam Mort Mezz-E-1                6.60% due 7/1/2011          125,000           131,718
    AA     Idaho Housing Authority
           Single Fam Mort Rev Ser B1             8.125% due 7/1/2019            5,000             5,222
                                                   8.00% due 1/1/2020           30,000            31,519
    AA     Idaho Housing Authority
           Single Fam Mort SR Ser C1               7.70% due 7/1/2017          60,000            62,791
                                                                               -------           ------
           SUB-TOTAL                                                           580,000           603,895

Irrigation (5.1%)
    AA     Boise Kuna Irr. Dist.                   6.00% due 7/1/2008          250,000           265,838

Medical/Hospitals (3.6%)
    A      Idaho Health Facility
           St. Alphonsus Med. Ctr.                6.25% due 12/1/2012          175,000           184,216

Real Estate (6.3%)
    A      Idaho Falls
           Redevel. Agency Rev.                    8.05% due10/1/2006          100,000           112,549
                                                 8.125% due 10/1/2008          100,000           112,940
   AAA     Idaho Bldg. Authority
           Rev. Ref. Ser C                         5.70% due 9/1/2007         100,000           104,905
                                                                              --------          -------
           SUB-TOTAL                                                           300,000           330,394

Roads (7.5%)
    A      Payette L.I.D.                          7.60% due 5/1/2005           30,000            30,593
    A      Post Falls, Kootenai County            6.50% due 4/15/1996           10,000             9,963
           L.I.D. #91-1                           6.75% due 4/15/1997           10,000             9,976
                                                  7.00% due 4/15/1998           10,000             9,982
                                                  7.20% due 4/15/1999           15,000            14,982
                                                  7.40% due 4/15/2000           15,000            14,996
                                                  7.60% due 4/15/2001           15,000            15,002
                                                  7.75% due 4/15/2002           20,000            20,008
                                                  7.95% due 4/15/2003           20,000            20,018
                                                  7.95% due 4/15/2004           20,000            20,018
                                                  7.95% due 4/15/2005           20,000            20,018
                                                  7.95% due 4/15/2006           20,000            20,016
                                                  7.95% due 4/15/2007           20,000            20,015
    A      Post Falls L.I.D. #91-4                 4.75% due 9/1/1999           30,000            29,942
                                                   5.00% due 9/1/2000           30,000            30,092
                                                   5.20% due 9/1/2001           35,000            35,223
                                                   5.40% due 9/1/2002           35,000            35,077
                                                   5.60% due 9/1/2003          35,000            35,084
                                                                               -------           ------
           SUB-TOTAL                                                           390,000           391,005

School (GO's) (28.6%)
    AA     Ada and Canyon Counties                 6.65% due1/30/2011          100,000           109,566
           Joint School Dist #2 Meridian         7.375% due 7/30/2000          100,000           111,947
   AAA     Bonneville/Bingham Counties            5.40% due 7/30/2008          150,000           153,558
           Jt Schl Dist #93  Ref Ser A            5.50% due 7/30/2010          100,000           102,178
    A      Bonneville County
           School Dist #91                         7.00% due 8/1/2008          155,000           167,216
    A      Canyon County                           5.90% due 8/1/2005           50,000            52,355
           School Dist. #135                       6.00% due 8/1/2006           50,000            53,131
                                                   6.00% due 8/1/2007           50,000            52,783
   AAA     Gooding Co.(Wendell)
           School Dist. #232                       6.00% due 8/1/2008           55,000            58,289
   AAA     Kootenai County
           School Dist #273                        6.00% due 8/1/2012          100,000           106,041
   AAA     Madison County
           School Dist.  #321                      5.60% due 2/1/2010          150,000           155,496

    AA     Payette County                         6.50% due 7/31/2008           80,000            86,514
           School Dist. #372                      6.75% due 7/31/2009          155,000           173,017
                                                  6.75% due 7/31/2010         100,000           111,128
                                                                              --------          -------
           SUB-TOTAL                                                         1,395,000         1,493,219

State Education (14.2%)
   AAA     Boise St. Univ.                         6.20% due 4/1/2010          200,000           215,580
           Fee Revenue                             6.30% due 4/1/2014          100,000           108,367
    A      Idaho State University
           Student Fee                             6.40% due 4/1/2014          250,000           268,191
   AAA     University of Idaho
           Student Fee Rev.                        7.70% due 4/1/2010           85,000            91,922
    A      University of Idaho
           Revenue                                 6.85% due 4/1/2016          50,000            55,547
                                                                               -------           ------
           SUB-TOTAL                                                           685,000           739,607

Utility-Electric Power (1.9%)
   AAA     Idaho Falls
           Elec. Rev.                              6.75% due 4/1/2019          100,000           103,205

Utility-Sewer (5.0%)
    A      Hayden Lake L.I.D. #1                   6.00% due 9/1/2004           60,000            59,991
    A      Troy Sewer Rev.
                                                   6.80% due 2/1/1996           10,000             9,995
                                                   6.90% due 2/1/1997           10,000            10,121
                                                   7.00% due 2/1/1998           10,000            10,256
                                                   7.10% due 2/1/1999           10,000            10,449
                                                   7.20% due 2/1/2000           10,000            10,541
                                                   7.30% due 2/1/2001           10,000            10,593
                                                   7.40% due 2/1/2002           10,000            10,672
                                                   7.50% due 2/1/2003           10,000            10,659
                                                   7.60% due 2/1/2004           10,000            10,676
                                                   7.70% due 2/1/2005           15,000            16,076
                                                   7.80% due 2/1/2006           15,000            16,016
                                                   7.90% due 2/1/2007           15,000            16,019
           Troy Sewer Rev. cont'd.                 8.00% due 2/1/2008           15,000            15,948
                                                   8.00% due 2/1/2009           20,000            21,416
                                                   8.00% due 2/1/2010          20,000            21,408
                                                                               -------           ------
           SUB-TOTAL                                                           250,000           260,836

Utility-Water Supply (10.9%)
    A-     American Falls Res.                     7.25% due 5/1/2004           70,000            78,379
           Ref. Series A                          7.625% due 5/1/2021          150,000           169,303
    A      McCall Water Rev., Ser 1994             6.25% due 9/1/2008          200,000           210,249
    A      McCall Water Revenue                   6.375% due 9/1/2014           70,000            73,380
    A      Ucon Water & Sewer Rev. Ref.           7.75% due 12/1/2002          35,000            39,009
                                                                               -------           ------
           SUB-TOTAL                                                          525,000           570,320
                                                                              --------          -------

Total Investments (96.7%)                                                $  4,750,000         $5,048,501
                                                                        ==============
Other Assets (net of liabilities) (3.3%)                                                        171,813
                                                                                                -------
Total Net Assets (100%)                                                                     $ 5,220,314
</TABLE>
These unaudited bond ratings reflect the adviser's  current rating of each bond,
as determined using Standard & Poor's and Moody's ratings.
<TABLE>

Financial Highlights
Selected data per share of capital stock outstanding throughout the period:
                                                                                                 Sept. 4,
                                                                                                        '87
                                                                                                 (commence-
                                                                                                  ment of
                                                                                                        op-
                                                                                  For Year Ended erations)
                                                                                     November 30         to
                                 ----------------------------------------------------------------
                                    1995    1994    1993    1992    1991    1990    1989    1988 Nov. 30
                                 -------    ----    ----    ----    ----    ----    ----    ---- -------
                                                                                                        '87
Net asset value at beginning
<S>                                <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>   <C>  
   of period                       $4.76    $5.23    $5.16    $5.10    $5.03    $5.07    $4.98    $5.03 $5.00
                                                                                                       
   Income From Investment
   Operations
   Net investment income
                                    0.26    0.27    0.25    0.28    0.30    0.33    0.35    0.35       0.02
   Net gains or losses on
   securities
      (both realized and
      unrealized)                  0.52   (0.46)   0.12    0.09    0.07   (0.04)   0.09   (0.05)      0.02
                                   -----  ------   -----   -----   -----  ------   -----  ------      ----
Total From Investment
Operations                          0.78  (0.19)    0.37    0.37    0.37    0.29    0.44    0.30       0.04
   Less Distributions
   Dividends (from net
   investment
      income)                     $       $       $               $       $       $       $       $
                                  (0.26)  (0.27)  (0.25) (0.285)  (0.30)  (0.33)  (0.35)  (0.35)     (0.01)
   Distributions (from capital     0.00   (0.01)  (0.05) (0.025)   0.00    0.00    0.00    0.00       0.00
                                   -----  ------  ------ -------   -----   -----   -----   -----      ----
   gains)
Total Distributions
                                  (0.26)  (0.28)  (0.30)  (0.31)  (0.30)  (0.33)  (0.35)  (0.35)     (0.01)
Net asset value at end            $       $       $       $       $       $       $       $
                                    5.28    4.76    5.23    5.16    5.10    5.03    5.07    4.98 $
                                                                                                       5.03
    of period
Total Return                      16.68% (3.76)%   7.35%   7.49%   7.63%   5.94%   9.17%   6.45%      3.20%
Ratios / Supplemental Data
Net assets ($000), end of         $       $       $       $       $       $       $       $
period                             5,220   6,841   7,367   5,808   3,803   2,540     808     335 $
                                                                                                         29
Ratio of expenses to average
   net assets*                     0.75%   0.75%   0.75%   0.75%   0.75%   0.97%   0.90%   0.28%      0.11%
Ratio of net investment income
   to average net assets*          5.07%   5.28%   4.79%   5.64%   6.08%   6.74%   6.51%   6.58%      0.56%
Portfolio turnover rate              28%     36%     31%     17%     15%     17%     13%    100%         0%
               * Not Annualized
<FN>

For each of the above years,  all or a portion of the 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 $.016, $.007, $.009, $.008, $.02, $.02, $.05,
$.10,  $.19,  and $.01,  respectively.  The increase to the ratio of expenses to
average monthly net assets would be .26%, .14%, .18%, .17%, .54%, 1.01%,  1.25%,
2.24% and .11%,  respectively.  (The accompanying  notes are an integral part of
these financial statements)
</FN>
</TABLE>
<TABLE>

Statement of Assets and Liabilities
As of November 30, 1995
Assets
      Investments, at value
<S>                                                                 <C>
      Municipal Bonds (cost $4,797,276)                             $5,048,501
      Cash                                                             78,340
      Interest receivable                                              97,090
      Insurance deposit                                                   800
                                                                          ---
            Total Assets                                            $5,224,731
                                                                    ----------
Liabilities
      Payable to affiliate                                             4,417
                                                                       -----
            Total Liabilities                                           4,417
                                                                        -----
Net Assets                                                          5,220,314
                                                                    ---------
Fund shares outstanding                                              988,761
Analysis of Net Assets
      Paid in capital (unlimited shares authorized, no par value)   5,033,109
      Undistributed net investment income (loss)                           (26)
      Accumulated net realized gain (loss) on investments             (63,994)
      Unrealized net appreciation on investments                     251,225
                                                                     -------
      Net Assets applicable to Fund shares                          $5,220,314
                                                                    ==========
Net Asset Value per share                                           $     5.28
</TABLE>
<TABLE>

Statement of Operations
Year ended November 30, 1995
Investment income
<S>                                                                     <C>     
      Interest income                                    $   368,984
      Amortization of bond premiums                         (12,119)
      Accretion                                              1,154
      Miscellaneous                                             221
                                                                ---
          Gross investment income                                       $358,240
Expenses
      Investment adviser and administration fee              30,862
      Professional fees                                       13,612
      Shareowner servicing                                    5,205
      Printing and postage                                    4,954
      Filing and registration fees                           2,155
      Other expenses                                           5,618
                                                               -----
      Total gross expenses                                    62,406
          Less earnings credits                                         (2,041)
          Less advisory fee waived                           (14,048)
                                                             ------- 
      Net expenses                                                       46,317
                                                                         ------
          Net investment income                                         311,923
                                                                        -------
Net realized gain (loss) on investments
      Proceeds from sales                                3,446,364
      Less cost of securities sold based on identified
      cost                                                 3,510,768
                                                           ---------
          Realized net loss                                            (64,404)
                                                                       ------- 
Unrealized gain (loss) on investments
      End of period                                         251,225
      Beginning of period                                  (500,262)
                                                           -------- 
      Increase in unrealized gain for the period            `           751,487
                                                                        -------
          Net realized and unrealized gain on investments              687,083
                                                                    -----------
Net increase in net assets resulting from operations                   $999,006
                                                                       ========
                                                                                   
(The accompanying notes are an integral part of these financial statements)
</TABLE>
<TABLE>

Statement of Changes in Net Assets
INCREASE (DECREASE) IN NET ASSETS                                                 Year ended      Year ended
                                                                               Nov. 30, 1995   Nov. 30, 1994
Operations:
<S>                                                                                                     <C>    <C>
     Net investment income                                                       $   311,923                   $
                                                                                                                    381,688
     Net realized (loss) gain on investments                                     (64,404)         19,224
     Net  increase (decrease) in unrealized appreciation                           751,487        (692,425)
                                                                                   -------        -------- 
     Net  increase (decrease) in net assets                                       999,006        (291,513)

Dividends to Shareowners From:
     Net investment income                                                      (311,941)       (383,476)
                                                                                --------        -------- 
     Capital gains distributions                                                 --           (20,015)
                                                                                              ------- 

Fund Share Transactions:
     Proceeds from sales of shares                                               793,990       2,393,405
     Value of shares issued in reinvestment of dividends                         226,992         287,510
                                                                                 -------         -------
                                                                                 1,020,982       2,680,915
     Cost of shares redeemed                                                      (3,329,049)    (2,512,371)
------------------------------------------------------------------------------   -----------    -----------    ------------
     Net increase (decrease) in net assets from share transactions                (2,308,067)    168,544
                                                                                 -----------    ------------
  Total increase (decrease) in net assets                                      (1,621,002)     (526,460)

Net Assets
     Beginning of period                                                           6,841,316      7,367,776
                                                                                   ---------      ---------
     End of Period                                                                              $ 5,220,314    $ 6,841,316
==============================================================================   ===========    ===========    
     (Including undistributed net investment income of
     ($26) for  Nov. 30,1995 and ($8) for Nov. 30,1994)
Shares of the Fund Sold and Redeemed
     Number of shares sold                                                                        225,327         466,823
     Number of shares issued in reinvestment of dividends                                            44,240          57,107
     Number of shares redeemed                                                                   (717,954)       (495,726)
                                                                                                 --------        -------- 

Net Increase (Decrease) in Number of Shares Outstanding                                        (448,387)        28,204
                                                                                               ========         ======
</TABLE>
(The accompanying notes are an integral part of these financial statements)

                         DISCUSSION of FUND PERFORMANCE
                                   (unaudited)
     For the twelve-month period ending November 30, 1995, Idaho Tax-Exempt Fund
       returned  shareholders  16.68%.  At November  30, the 30-day yield on the
       Fund was 4.6% and the share  price had risen to $5.28  from  $4.76 at the
       beginning of the fiscal year.

Although the bond market enjoyed a substantial  recovery from the bear market of
fiscal 1994,  concerns  about a possible  flat (or flatter)  federal  income tax
meant the municipal bond market maintained a fairly high level of interest rates
relative to taxable  securities.  While this high  relative  yield  presented an
opportunity to buyers of municipal bonds generally, it did restrain somewhat the
rally in price experienced by some issues in the marketplace.

The  primary  objective  of the Fund is income  exempt  from  federal  and Idaho
personal  income taxes,  with the secondary  objective of capital  preservation.
Although Idaho has a relatively  high personal income tax, the fact that its per
capita  outstanding  municipal debt is only  one-third the national  average and
that it has a high income tax means Idaho debt is relatively  dear in the market
because of the excess of demand over supply.  These factors  reduce the yield on
Idaho bonds compared to similar issues of other states,  but also  contribute to
relative stability of principal.

The Fund's  secondary  policy of preservation of capital drives it to maintain a
moderate  portfolio  maturity in the intermediate  5-to-15 year range. While the
Fund's  policies limit price risk normally  associated  with longer  maturities,
when compared to a general bond index,  such as the Lehman  Municipal  Index, or
funds with policies more like the Index, the Fund typically will experience both
less price decline and appreciation than the Index. Though the Fund does not try
to  "beat"  the  Lehman  or  any  other  specific  index,  the  Fund's  returns,
considering lower price fluctuation, compared favorably to that of the Index for
the fiscal year, as shown in the accompanying chart.

The line graph below compares Idaho Tax-Exempt Fund's  performance to the Lehman
Brothers Municipal Bond Index, a broad-based  municipal bond market index. To be
comparable,  the Municipal Index data includes reinvested income (as computed by
Lehman  Brothers  Fixed  Income  Research).  Note that this  graph  compares  an
unmanaged,  expense-free  index to an actively managed fund that has transaction
and other costs and stands ready to buy and sell its securities to  shareholders
on a daily  basis,  as well as  providing  s a wide range of  services  to them.
Additionally, it should be noted that few if any investors are able to invest in
such a portfolio  because of the large  amount of  securities  involved to model
such a portfolio.

Were the Fund to target the Index as an  objective,  the Fund might take greater
risk in a  longer  term  maturity  in its  portfolio  to take  advantage  of the
fluctuation--for  better or for  worse--available in such a portfolio.  However,
maintaining  the stability of capital is an objective of the Fund, so we believe
the Fund has performed well within expectations.
The graph shows that  $10,000  invested in Idaho  Tax-Exempt  Fund at the end of
September  1987 would have grown to  $17,225  at the end of  November  1995.  If
$10,000 could have been invested in the Lehman Brothers  Municipal Bond Index at
the end of September 1987, that would have grown to $20,678.
Date               The Fund           Lehman Index
            Sep-87            $10,000           $10,000
          11/30/88              10679             11391
          11/30/89              11658             12644
          11/30/90              12351             13620
          11/29/91              13294             15019
          11/30/92              14290             16525
          11/30/93              15341             18356
          11/30/94              14763             17392
          11/30/95              17225             20678

(Graph omitted)

NOTES TO FINANCIAL STATEMENTS
Note 1-Organization
Saturna  Investment  Trust,  (formerly  Northwest  Investors  Trust)  Trust (the
"Trust")  was  established  under  Washington  State Law as a Business  Trust on
February  20,  1987.  The Trust is  registered  as a  no-load,  open-end  series
investment  company under the Investment  Company Act of 1940, as amended.  Four
portfolios  have been created to date in addition to Idaho  Tax-Exempt Fund (the
"Fund.") The other four portfolios  distribute through a separate prospectus and
the results of those funds are contained in a separate report.

Note 2--Significant Accounting
Policies
The following is a summary of the significant  accounting  policies  followed by
the Fund.

Investments:
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.

Expenses incurred by the Trust on behalf of the Fund (e.g.,  professional  fees)
are  allocated  to the Fund and the  other  Funds of the  Trust on the  basis of
relative  daily average net assets.  The Adviser has agreed to certain limits on
expenses, as described below.

Income taxes:
The Fund has elected to be taxed as a  regulated  investment  company  under the
Internal  Revenue  Code and  distribute  substantially  all of its  taxable  net
investment income and realized net gains on investments. Therefore, no provision
for Federal  income  taxes is  required.  Further,  the Fund intends to meet IRS
requirements  for  tax-free  income  dividends,  and  requirements  of the Idaho
Department of Revenue for income dividends free of Idaho state income tax.

Dividends and distributions to shareowners:
Dividends and distributions to shareowners are recorded on the ex-dividend date.
Dividends are paid daily and distributed on the last business day of each month.
Shareowners electing to reinvest dividends and distributions purchase additional
shares at the net asset value on the payable date.

Note 3--Transactions with Affiliated Persons
Under a contract  approved by share-owners on October 12, 1990,  Saturna Capital
Corporation   provides   investment   advisory   services   and  certain   other
administrative  and distribution  services to conduct the Fund's  business.  For
such  services,  the Fund pays an annual fee equal to .50% of average  daily net
assets.  For the year ended  November 30, 1995,  the Fund incurred  advisory fee
expenses of $30,862.

Saturna  Capital has  volunteered to reimburse the Fund to the extent that total
expenses of the Fund,  (excluding  interest,  brokerage  commissions  and taxes)
exceeds  0.75%  through  November  30,  1995 and .80%  througn  March 31,  1997.
Accordingly,  for the year ended  November  30,  1995,  Saturna  Capital  waived
$14,048 of the advisory fee.

In accordance with the Fund's  agreement with its custodian bank,  National City
Bank, for the year ended November 30, 1995, custodian fees incurred by the Fund,
amounted to $2,041.

Two  trustees,  who also serve as  officers  of the  Trust,  are  directors  and
officers of Saturna Capital Corporation.

The Trust acts as a  distributor  of its own shares,  except in those  states in
which   Investors   National   Corporation  (a  subsidiary  of  Saturna  Capital
Corporation)  is itself  registered as a  broker-dealer  and acts as distributor
without  compensation.  Saturna Capital Corporation acts as shareowner servicing
(transfer) agent for the Fund, for a monthly fee plus certain expenses.  For the
fiscal year ended November 30, 1995, the Fund paid such a fee of $5,205.

All  trustees  have  served to date  without  compensation;  however,  effective
January 1, 1996 the  unaffiliated  trustees  will begin to receive a fee of $100
per meeting  attended  each. On November 30, 1995,  the  trustees,  officers and
their immediate  families as a group owned none of the outstanding shares of the
Fund.

Note 4--Federal Income Taxes
At November 30, 1995,  theFund had capital loss  carryforwards  of $64,404 which
expire in 2003. 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 the
Fund of  $251,225  comprised  gross  unrealized  gains  of  $259,531  and  gross
unrealized losses of $8,306.

During the year ended  November  30,  1995,  the Fund  purchased  $1,643,866  of
securities and sold/matured $3,446,364 of securities.
                                    REPORT of
                             INDEPENDENT ACCOUNTANTS
                            To the Board of Trustees
and Shareowners of
Saturna Investment Trust

In our opinion, the accompanying statement of assets and liabilities,  including
the schedule 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 Idaho Tax-Exempt Fund, a series
of Saturna  Investment Trust,  (formerly  Northwest  Investors Trust;  hereafter
referred to as the "Trust") at November 30, 1995,  the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the six years
in the period then ended,  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.


Seattle, Washington
December 15, 1995

                             Idaho Tax-Exempt Fund,
A Portfolio of Saturna Investment Trust
Saturna Capital
                                  Mutual Funds
                                                             1-800/SATURNA
                                                             (800/728-8762)
This report is issued for the  information of the shareowners of the Fund. It is
not  authorized  for   distribution  to  prospective   investors  unless  it  is
accompanied or preceded by an effective prospectus relating to the securities of
the Fund. Idaho Tax-Exempt Fund is a series of Saturna
Investment Trust.
                         (GRAPHIC OF IDAHO MAP OMITTED)
                                  ANNUAL REPORT
November 30, 1995