SECURITIES AND EXCHANGE COMMISSION  WASHINGTON, DC 20549**FORM N-CSR****CERTIFIED SHAREHOLDER REPORT OF REGISTERED  MANAGEMENT INVESTMENT COMPANIES**  Investment Company Act file number: 811-05071 or 33-13247**SATURNA INVESTMENT TRUST**  (Exact Name of Registrant as Specified in Charter)**1300 N. State Street  Bellingham, Washington 98225-4730**  (Address of Principal Executive Offices, including ZIP Code)  Nicholas F. Kaiser  1300 N. State Street  Bellingham, Washington 98225-4730  (Name and Address of Agent for Service)  Registrant’s Telephone Number- (360) 734-9900  Date of fiscal year end: November 30, 2003  Date of reporting period: May 31, 2003

 

*N-CSRS Semi-Annual Report May 31,2003*

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**REPORT TO STOCKHOLDERS**

Sextant

**Mutual Funds**

**
(Graphic Omitted)
**
**
*Fellow Shareowners:*

The 3-year bear market that began in March 2000 is over. The    next 18 months appear to be a time to make your maximum allocation to U.S.    stocks. Helped by many factors, corporate earnings for all of 2003 should    grow more than 12%. Federal tax cuts, devaluation of the U.S. dollar, new    prospects for peaceful cooperation, and clear political leadership portend    well for 2004. But outside the U.S., the picture is murkier as long-termrelationships    are strained and Japan, Europe and Latin America experience deflation and    unemployment.    Prudent investors do well to remember that change is the only real constant.    Recent choppy economic seas will again be soothed by the “invisiblehand”    of free economic markets. Change is the rational for our four distinctlydifferent    Sextant funds, which allow investors to choose the variable returns of the    domestic and international stock markets, long-term bonds, or the safety of    short-term bonds.    For the last six months, the Sextant bond funds provided excellent haven.    Now seeking greater safety, in the last few months we have reducedmaturities    and increased quality in these bond funds. Looking forward, with interest    rates increasing, equities look poised for better relative returns. Rotation    from fully priced bonds back into 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 every Sextant fund again outperformed its Morningstar benchmarks toqualify    for performance fee bonuses. For the six and twelve months ended May 31,2003    comparative total returns are:
Sextant Fund6-month           Total Return12-month          Total Returnvs. Morningstar12-month          Total ReturnShort-Term Bond+4.77%+7.34%Short-Term Bonds+5.72%Bond Income+10.29%+16.82%Long-Term Bonds+14.72%Growth+3.94%-6.43%Domestic Growth-7.83%International+4.45%-12.78%Foreign Stock-13.16%
While our funds remain small, growing awareness of the Sextant    Funds and their excellent performance continue to attract investors. 2003    has been a better 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, 2003
********2** *N-CSRSSemi-Annual          Report May 31, 2003***INVESTMENTS** **SEXTANTSHORT-TERM          BOND FUND**(graphic omitted)**Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**     *As of May 31, 2003*  ***Auto/Truck Manufacturing (3.9%)***    A-DaimlerCrysler6.90% 9/1/2004 $90,000 $93,699        ***Banking (14.3%)***    A+Australia & New Zealand Bank6.25% 2/1/2004 85,000 87,173 ABankers Trust8.25% 5/1/200585,00093,874 A+ JP Morgan & Co. Inc.7.625 % 9/15/200480,00085,292 A-Washington Mutual Financial 8.25% 6/15/200575,000  84,312  *SUB-TOTAL*  325,000 350,651        ***Building Products (3.2%)***    A-Lowes Companies7.50% 12/15/200570,00079,157        ***Computer (3.1%)***    AA-Hewlett Packard7.15 % 6/15/200570,00076,072        ***Cosmetics & Toiletries (3%)***    BBBDial6.625% 6/15/2003 75,000  74,631        ***Finance & Insurance (11.5%)***    AAlliance Capital Mangement5.625% 8/15/200665,00070,580 A+International Finance AIG5.75% 10/15/200695,000103,034 A-Lincoln National Insurance7.25% 5/15/2005 100,000 109,181  *SUB-TOTAL*  260,000 282,795        ***Machinery (11.9%)***    ADeere6.55% 7/15/200490,00093,715 AEaton6.95% 11/15/200485,00090,447 A-Rockwell Automation International6.15% 1/15/200895,000106,645  *SUB-TOTAL* 270,000290,807        ***Medical Drugs (14.9%)***    AAABristol Myers Squibb4.75% 10/1/200690,00096,584 ACardinal Health 6.50% 2/15/200475,00076,928 AAAPfizer5.625% 2/1/2006100,000109,956 A-Wyeth7.90% 2/15/200575,00082,123  *SUB-TOTAL* 340,000365,591 
 
*N-CSRS Semi-Annual        Report May 31, 2003* *3*(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value**  ***Oil & Gas (4.4%)***    BBB+Union Oil of California7.20% 5/15/2005 $100,000  $107,952        ***Publishing (2.1%)***    A-Tribune 6.875% 11/1/2006 45,000 51,202        ***Retailing (2.1%)***    BBBSafeway6.05% 11/15/2003 50,000  50,507        ***Telecommunications (8.1%)***    AA-Southwestern Bell6.625% 7/15/2007 95,000 108,031 A-Verizon Wireless5.375% 12/15/200682,00089,500  *SUB-TOTAL* 177,000197,531        ***Utilities (8.4%)***    AA-Florida Power & Light6.875% 12/1/2005 95,000 105,595 A-Sempra Energy6.95% 12/1/200592,000101,367  SUB-TOTAL 187,000206,962        **Total Investments (90.9%)**(Cost = 2,115,487) 2,059,000 2,227,557  Other Assets (net of liabilities) (9.1%)  223,353  **Total Net Assets (100%)** **$2,450,910**  **Ratings are the lesser of S&P or Moody's(unaudited)*    *4* *N-CSRSSemi-Annual          Report May 31, 2003***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, 2003
20022001200019991998**Net asset value at beginning of period** **$5.07****$5.10****$4.95****$4.92****$5.04****$4.99** *Income from investment operations*         Net Investment Income 0.11 0.27 0.26 0.27 0.26  0.27  Net gains or losses on securities        (both realized and unrealized)0.12 (0.02) 0.14 0.03 (0.12) 0.05 Total from investment operations  0.23 0.25 0.40 0.30 0.14  0.32  *Less distributions*       Dividends (from net investment income) (0.11) (0.28) (0.25) (0.27) (0.26) (0.27) Distributions (from capital gains) - - - - - -Total distributions  (0.11) (0.28) (0.25) (0.27) (0.26) (0.27)**Net asset value at end of period** **$5.19****$5.07****$5.10****$4.95****$4.92****$5.04****Total Return** **4.77%****4.90%****8.37%****6.20%****2.88%****6.67%**Ratios / Supplemental Data       Net assets ($000), end of period $2,451$2,177$2,189$2,555$1,795 $1,908 Ratio of expenses to average net assets* 0.30%0.93%0.51%0.61%0.47%0.48%Ratio of net investment income to average net assets* 2.31%5.23%5.45%5.45%5.22%5.57%**Portfolio turnover rate** **12%****28%****28%****12%****21%****71%***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 .31%, .21%, .43%, .41%, .57%, and .44%respectively.
   
**STATEMENT OFASSETS          AND LIABILITIES**
*As    of May 31, 2003***Assets**     Investments (Cost $2,115,457)  $2,227,557  Cash  183,569  Interest Receivable  38,682   Total Assets   $2,449,808**Liabilities**     Other Liabilities  (1,102)   Total Liabilities  (1,102)**Net Assets**   $2,450,910     **Fund Shares Outstanding**    472,203     **Analysis of Net Assets**     Paid in Capital (unlimited shares authorized, without par        value) 2,370,796   Accumulated net realized loss on investments  (31,955)  Unrealized net appreciation to Fund sharesoutstanding 112,069   Net Assets applicable to Fund shares outstanding   $2,450,910     **Net Asset Value, Offering and Redemption price pershare**  $5.19
*(The accompanying notes are an integral part of thesefinancial    statements)*
*N-CSRS Semi-Annual        Report May 31, 2003* *5*(Graphic        Omitted)**SEXTANTSHORT-TERM        BOND FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31,2003***Investment Income**    Interest income$64,523  Amortization of bond premium(8,476)  Accretion of bond discounts2,117   Gross investment income $58,164    **Expenses**    Investment advisor and administration fee7,774  Professional fees1,904  Filing and registration fees1,778  Custodian fees987  Insurance fees587  Meetings190  Printing and postage 189  Other expenses139   Total gross expenses13,548  Less: Advisory fees waived(5,866)  Less: Custodian fees waived(987)   Net expenses  6,695  Net investment income 51,469    **Net realized gain on investments**    Proceeds from sales246,200  Less: cost of securities sold (based on identifiedcost)244,257   Realized net gain 1,943    **Unrealized gain on investments**    End of period112,069  Beginning of period63,527  Increase in unrealized gain for the period 48,542  Net realized and unrealized gain on investments 50,485   **Net increase in net assets resulting fromoperations** **$101,954****STATEMENT OFCHANGES        IN NET ASSETS** 
****  **Period ended****Year ended**  **May 31, 2003****Nov. 30, 2002****INCREASE (DECREASE) IN NET ASSETS**   **From Operations:**    Net investment income $51,469 $115,149 Net realize (gain on investments1,9431,414 Net increase (decrease) in unrealized appreciation48,542(12,326) Net increase in net assets from operations 101,954 104,237    **Dividends to shareowners from:**    Net investment income(51,514)(118,239) Capital gains distributions--  Total Distributions(51,514)(118,239)    **Fund share transactions**    Proceeds from sales of shares480,782439,793 Value of shares issued in reinvestment of dividends50,702117,683  531,484557,476 Cost of shares redeemed(308,071)(555,278) Net increase in net assets from share transactions223,4132,198**Total increase (decrease) in net assets** **$273,853****$(11,804)****NET ASSETS**    Beginning of period2,177,0572,188,861 End of period$2,450,910$2,177,057**Shares of the fund sold and redeemed**    Number of shares sold93,40786,066 Number of shares issued in reinvestment of dividends9,81723,087  103,224109,153 Number of shares redeemed(60,255)(109,001)**Net increase in number of shares outstanding** **42,969****152**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*6* *N-CSRSSemi-Annual          Report May 31, 2003***INVESTMENTS** 
**SEXTANT BONDINCOME          FUND**(Graphic          Omitted)**Rating****Issuer********Coupon/Maturity****Face Amount****Market Value**     As of May 31, 2003 ***Banking (9.6%)***    A+Chase Manhattan 7.125% 6/15/2009$50,000 $58,228ACiticorp 7.25% 10/15/201150,000 60,723A-Comerica Bank 7.125% 12/1/201350,000 56,406A+Norwest Financial 6.85% 7/15/2009 50,000  59,098 *SUB-TOTAL*  200,000 234,455       ***Building Products (3%)***    BBB+Masco  7.125% 8/15/201360,00072,327       ***Chemicals (2.7%)***    A-Air Products & Chemicals 8.75% 4/15/202150,00066,646       ***Diversified Financial Services (3.1%)***    AAAGeneral Electric Capital  8.125% 5/15/201260,00075,716       ***Electric Utilities (5.1%)***    A-Commonwealth Edison 7.50% 7/1/201350,00062,680BBB+Sempra Energy 7.95% 3/1/2010 50,000 61,870 *SUB-TOTAL*   100,000 124,550       ***Electronics (2.4%)***    A-Koninlijke Phillips Electronics  7.25% 8/15/2013 50,000  58,347       ***Food (8.6%)***    BBB+Conagra 7.875% 9/15/201050,00061,569A+Hershey Foods 6.95% 8/15/201250,00061,120A-HJ Heinz  6.00% 3/15/201275,00086,110 *SUB-TOTAL*  175,000208,799       ***Insurance (10.6%)***    AAllstate 7.50% 6/15/2013 50,000  61,995AProgressive 7.00% 10/1/201375,00091,567 XL Capital 6.50% 1/15/201290,000103,748 *SUB-TOTAL*  215,000257,310       ***Investment Finance (5.2%)***    AA-Morgan Stanley Dean Witter 6.75% 10/15/2013 50,000  58,599BBB+Paine Webber Group 7.625% 2/15/2014 50,000  68,090 *SUB-TOTAL*   100,000  126,689       ***Machinery (5.6%)***    ACaterpillar Inc. 9.375% 8/15/2011 40,000 54,556A+Dover  6.25% 6/1/200870,00081,148 *SUB-TOTAL*  110,000135,704*N-CSRS Semi-Annual        Report May 31, 2003* *7*(Graphic        Omitted)**SEXTANT        BOND INCOME FUND** 
**INVESTMENTS****Rating****Issuer********Coupon/Maturity****Face Amount****Market Value** ***Medical Supplies (2.1%)***    A+Becton Dickinson 7.15% 10/1/2009 $40,000  $47,941       ***Oil & Gas (5.4%)***    ABaker Hughes 6.00% 2/15/200970,00078,598ATexaco Capital 8.625% 6/30/2010 40,000  52,137 *SUB-TOTAL*  110,000130,735       ***Retailing (10.4%)***    ADayton Hudson (Target Stores) 10.00% 1/1/201150,00069,135ALowe's Companies 8.25% 6/1/201050,00063,250A+May Department Stores Corp. 8.00% 7/15/201250,00063,607AAWal-Mart Stores 7.25% 6/1/201345,00057,138 *SUB-TOTAL*  195,000253,130       ***Telecommunications (2.4%)***    AA-GTE 6.90% 11/1/2008 50,000  58,323       ***Transportation (6%)***    BBB+Southwest Airlines 6.50% 3/1/201275,00086,464A-US Freightways  8.5% 4/25/2010 50,000  59,488 *SUB-TOTAL*  125,000145,952       ***US Government (10.6%)***    AAAUS Treasury Bond 5.50% 2/15/2008225,000258,188***Total Investments (92.8%)***  (Cost = 1,959,039)1,865,000 2,254,812Other Assets (net of liabilities) (7.2%)    175,593***Total Net Assets (100%)***    **$2,430,405**
**Ratings are the lesser of S&P orMoody's    (unaudited)*
*8* *N-CSRSSemi-Annual            Report May 31, 2003*******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, 200320022001200019991998**Net asset value at beginning of period** **$4.97****$4.81****$4.56****$4.59****$5.00****$4.83** *Income from investment operations*       Net investment income 0.11 0.26 0.30 0.29 0.30  0.29  Net gains or losses on securities         (both realized and unrealized) 0.39 0.16 0.25 (0.03) (0.41) 0.17 Total from investment operations  0.50 0.42 0.55 0.26 (0.11) 0.46  *Less distributions*       Dividends (from net investment income)        Taxable (0.11) (0.26) (0.30) (0.29) (0.30) (0.29) Distributions (from capital gains) - - - - - -Total distributions  (0.11) (0.26) (0.30) (0.29) (0.30) (0.29)**Net asset value at end of period** **$5.36****$4.97****$4.81****$4.56****$4.59****$5.00****Total return** **10.29%****9.02%****12.40%****6.05%****(2.20)%****10.08%**Ratios/supplemental data       Net assets ($000), end of period  $2,430 $2,105 $1,965 $1,505 $885  $1,345 Ratio of expenses to average net assets* 0.42%0.72%0.34%0.35%0.39%0.30%Ratio of net investment income to average net assets* 2.22%5.40%6.71%6.58%6.31%6.24%**Portfolio turnover rate********0%****29%****30%****0%****20%****0%**         *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 .18%, .34%, .72%, .64%, .66%, and .61%.
**STATEMENT OFASSETS          AND LIABILITIES***As of May 31, 2003*   **Assets**    Bond investments (Cost $1,959,039)$2,254,812  Cash132,608  Interest receivable38,657  Insurance reserve premium1,221   Total Assets $2,427,298    **Liabilities**    Other Liabilities(3,107)   Total Liabilities (3,107)**Net Assets**  $2,430,405   ******Fund Shares Outstanding**   453,663    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par        value)2,238,546  Accumulated net realized loss on investments(103,913)  Unrealized net appreciation to Fund sharesoutstanding295,772   Net Assets applicable to Fund shares outstanding $2,430,405**Net Asset Value, Offering and Redemption price pershare** $5.36
*(The accompanying notes are an integral part of thesefinancial    statements)*
*N-CSRSSemi-Annual          Report May 31, 2003* *9***(graphicomitted)**SEXTANT BOND INCOME FUND** 
**STATEMENT OFOPERATIONS***For the Semi-Annual period ended May 31,2002***Investment Income**    Interest income$64,086  Amortization of bond premiums(5,305)  Accretion of bond discounts54   Gross investment income  $58,835**Expenses**    Investment advisor and administration fee8,462  Filng and registration fees1,837  Professional fees1,596  Insurance534  Custodian fees355  Printing and postage204  Meetings162  Other expenses110   Total gross expenses13,260  Less: Advisor fees waived(3,530)  Less: Custodian fees waived(355)   Net expenses 9,375  Net investment income  49,460**Net realized gain on investments**    Proceeds from sales-  Less: Cost of securities sold based on identified cost-   Realized net gain  -**Unrealized gain on investments**    End of period295,772  Beginning of period123,383  Increase in unrealized loss for the period  172,389  Net realized and unrealized gain on investments  172,389**Net increase in net assets resulting fromoperations** **$221,849**
**STATEMENT OFCHANGES        IN NET ASSETS**  **Period ended****Year ended****INCREASE (DECREASE) IN NET ASSETS** **May 31, 2003****Nov. 30, 2002****From Operations:**    Net investment income  $49,460 $106,916 Net realized gain (loss) on investments-(14,253) Net increase in unrealized appreciation172,38974,471 Net increase in net assets from operations 221,849 167,134    **Dividends to shareowners from:**    Net investment income(49,523)(107,024) Capital gains distributions--  Total Distributions(49,523)(107,024)    **Fund share transactions**    Proceeds from sales of shares131,331365,971 Value of shares issued in reinvestment of dividends46,904103,671  178,235469,642 Cost of shares redeemed(25,329)(389,165) Net increase in net assets from share transactions152,90680,477**Total increase in net assets** **$325,232****$140,587****NET ASSETS**    Beginning of period2,105,1731,964,586 End of period $2,430,405 $2,105,173    **Shares of the fund sold and redeemed**    Number of shares sold39,04975,292 Number of shares issued in reinvestment of dividends9,06621,389  48,11596,681 Number of shares redeemed(18,233)(80,967)**Net increase in number of shares outstanding****29,882****15,714**
*(The accompanying notes are an integral part of thesefinancial    statements)*
**10** *N-CSRSSemi-Annual        Report May 31, 2003***INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)**Issue****Number of Shares****Cost****Market Value**   As of May 31, 2003**Common Stocks (86.3%)**       ***Banking (11.5%)***   Convergys*3,500$129,041$62,580Frontier Financial 4,000  90,207  118,000Washington Mutual 6,750 44,124 275,265*SUB-TOTAL*  263,372 455,845    ***Computers (14.5%)***   3Com* 10,000 51,891 49,100Adobe Systems 4,800 50,490 169,536Apple Computer* 5,500 102,348 98,725Intuit* 3,000 131,758 137,760Oracle*  8,000 28,059 104,080Phoenix Technologies Ltd.* 3,06229,14814,238SUB-TOTAL  393,694 573,439    ***Construction (10.2%)***   Lowe's Companies4,000135,141169,040Weyerhaeuser 2,000  93,867 100,760SUB-TOTAL  229,008 269,800    ***Electronics (3.2%)***   Advamced Micro Devices*10,00041,70872,800Agilent Technologies*3,00087,24754,390 SUB-TOTAL   128,955 127,190    ***Food (2.8%)***   Performance Food Group* 3,000 96,917 108,570    ***Hotels & Motels (1.4%)***   Westcoast Hospitality* 15,000 111,772 57,000    ***Investments (7.1%)***   Neuberger Berman2,500109,92083,200Schwab (Charles) 20,415  9,117  198,026 SUB-TOTAL   119,037 281,226    ***Machinery (1%)***   Regal-Beloit 2,000 52,106 40,100***N-CSRS Semi-Annual      Report May 31, 2003* *11*(graphic omitted)**SEXTANT      GROWTH FUND** **INVESTMENTS**)**Issue****Number of Shares****Cost****Market Value** ***Medical (20.4%)***    Affymetrix* 2,000  $26,863 $45,500 Amgen*2,64034,598170,914 Barr Laboratories*2,000159,489158,250 Caremark Rx*3,00060,12567,740 Ligand Pharmaceuticals* 5,000  56,430 63,650 Lilly (Eli) 800 77,567 47,816 Pharmaceutical Product Development* 9,000 80,608 252,090 *SUB-TOTAL*  495,680 805,960      ***Metal Ores (1.2%)***    Phelps Dodge 1,330  76,218  48,478      ***Oil & Gas Production (1.8%)***    Noble* 2,000  14,212  71,320      ***Publishing (1.6%)***    Wiley (John) & Sons, Class A 2,400  47,112  61,080      ***Retail (3.2%)***    Bed Bath & Beyond 3,000 100,052 125,370      ***Telecommunications (1.4%)***    Sprint (FON Group)4,00048,15254,240      ***Transportation (5.9%)***    Airborne 2,500 27,082 51,325 Alask Air4,50078,16585,545 Southwest Airlines6,00090,16296,420 *SUB-TOTAL*  195,409 233,290      ***Utility (2.5%)***    FPL Group 1,500 87,711 99,705      ***Total Investments (86.3%)*** 2,459,407 3,412,613 Other Assets (net of liabilities) (13.7%)   540,620 ***Total Net Assets (100%)***  **$3,953,233**      **Non-income producing*    **12** *N-CSRSSemi-Annual        Report May 31, 2003*
**FINANCIALHIGHLIGHTS****** 
**SEXTANT GROWTHFUND**(graphicomitted)****Selected data per share of capital stock outstandingthroughout      the period:       Period ended  For the year ended Nov 30,  May 31, 200320022001200019991998**Net asset value at beginning of period** **$10.64****$11.90****$13.16****$12.68****$9.29****$9.58** *Income from investment operations*       Net investment income (0.02) (0.05) (0.02) (0.07) (0.06) 0.02  Net gains or losses on securities         (both realized and unrealized) 0.45 (1.21) (1.24) 1.36 4.26  (0.09)Total from investment operations  0.43 (1.26) (1.26) 1.29 4.20  (0.07) *Less distributions*       Dividends (from net investment income) - - - - (0.14) (0.02) Distributions (from capital gains) - - - (0.81) (0.67) (0.20)Total distributions  - - - (0.81) (0.81) (0.22)**Net asset value at end of period** **$11.07****$10.64****$11.90****$13.16****$12.68****$9.29****Total Return** **(3.94%)****(10.51)%****(9.57)%****10.16%****44.76%****(0.97)%**Ratios / Supplemental Data       Net assets ($000), end of period $3,953$3,373$3,792$3,862$3,116 $2,139 Ratio of expenses to average net assets 0.55%1.11%0.78%1.05%1.12%0.66%Ratio of net investment income to average net assets (0.23)%(0.48)%(0.18)%(0.51)%(0.50)%0.19%**Portfolio turnover rate** 3%15%8%20%28%41%
**STATEMENT OF ASSETS        AND LIABILITIES***As of May 31, 2003*       **Assets**    Investments (Cost $2,459,407)$3,412,613  Cash539,627  Dividends receivable1,068  Insurance reserve premium1,214   Total Assets 3,954,522    **Liabilities**    Other Liabilities1,289   Total Liabilities 1,289    **Net Assets**  $3,953,233    **Fund Shares Outstanding**  357,092    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without par      value)$2,978,202  Accumulated net realized gain on investments21,825  Unrealized net appreciation to Fund shares outstanding953,206  Net Assets applicable to Fund shares outstanding  $3,953,233   **Net Asset Value, Offering and Redemption price pershare** **$11.07***(The accompanying notes are an integral part of these financialstatements)****N-CSRS        Semi-Annual Report May 31,2003*** ****13**(graphicomitted)**SEXTANT GROWTH FUND** 
**STATEMENT OFOPERATIONS**
*For the Semi-Annual period ended May 31, 2003*
     **Investment Income**     Dividend income $10,576  Miscellaneous income 59   Gross Investment Income   $10,635     **Expenses**     Investment advisor and administration fee 13,667  Professional fees 2,371  Custodian fees 1,136  Filing and registration fees 913  Insurance 739  Printing and postage 342  Meetings 201  Other expenses 186   Total gross expenses 19,555  Less: Custodian fees waived (1,136)   Net expenses  18,419  Net investment loss   (7,784)     **Net realized gain on investments**     Proceeds from sales 101,501  Less: cost of securities sold based on identified cost 77,397  Realized net gain  24,104     **Unrealized gain on investments**     End of period 953,206  Beginning of period 800,316  Increase in unrealized gain for the period  152,890  Net realized and unrealized gain oninvestments  176,994    **Net increase in net assets resulting fromoperations**  **$169,210****STATEMENT      OF CHANGES IN NET ASSETS** 
********  **Period ended****Year ended****INCREASE (DECREASE) IN NET ASSETS** **May 31, 2003****Nov. 30, 2002****From Operations:**    Net investment loss $(7,784) $(17,391) Net realized gain (loss) on investments24,104(10,677) Net increase (decrease) in unrealized appreciation152,890(372,034) Net increase (decrease) in net assets from operations 169,210 (400,102)    **Dividends to shareowners from:**    Net investment income-- Capital gains distributions--  Total Distributions--    **Fund share transactions**    Proceeds from sales of shares497,790366,963 Value of shares issued in reinvestment of dividends--  497,790366,963 Cost of shares redeemed(86,844)(385,297) Net increase (decrease) in net assets from sharetransactions410,496(18,334)**Total decrease in net assets** **$580,156****$(418,436)****NET ASSETS**    Beginning of period3,373,0773,791,513 End of period $3,953,233 $3,373,077    **Shares of the fund sold and redeemed**    Number of shares sold48,69832,585 Number of shares issued in reinvestment of dividends--  48,96832,585 Number of shares redeemed(8,539)(34,371)**Net increase (decrease) in number of sharesoutstanding****40,159****(1,786)**
*(The accompanying notes are an integral part of these financialstatements)*

  
**14** *N-CSRSSemi-Annual        Report May 31, 2003*******INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)**Issue****Number of Shares****Cost****Market Value****Country**    As of May 31, 2003**Common Stocks (92.8%)**         ***Aircraft (2%)***    Embraer Aircraft ADR1,713$38,169$25,267Brazil     ***Automotive (3.8%)***    Nissan Motor ADR2,00030,08531,700JapanDesc ADR2,70042,98117,118Mexico*SUB-TOTAL* 73,06648,818      ***Banking and Financial (11%)***    Aegon NV ADR2,15819,73620,738NetherlandsAXA ADS3,00059,78445,390FranceBanco Bilbao Vizcaya ADS1,8007,70217,856SpainING Groep ADS1,40036,13422,848NetherlandsToronto-Dominion Bank1,40018,15936,036Canada*SUB-TOTAL* 141,515142,868      ***Building Materials (4.8%)***    C R H plc ADR2,00023,07531,700IrelandHanson plc ADR1,10033,05531,823UK*SUB-TOTAL* 56,13063,523      ***Computers (12%)***    Business Objects ADS*6,00019,570121,500FranceDassault Systems ADR1,00028,38033,360France*SUB-TOTAL* 47,950154,860      ***Consumer Products (4.1%)***    Coca-Cola Femsa ADS1,5009,75033,630MexicoGucci Group20010,92519,530Italy*SUB-TOTAL* 20,67553,160      ***Electronics (4.7%)***    Epcos AG ADS2,50057,30733,375GermanySony ADR1,00047,51727,340Japan*SUB-TOTAL* 104,82460,715      ***Hotels & Motels (2%)***    Fairmont Hotels & Resorts1,10024,38525,960Canada     ***Medical-Drugs (3.3%)***    Aventis ADS50815,85926,650FranceGlaxo SmithKline Wellcome plc ADR4009,80016,004UK*SUB-TOTAL* 25,65942,654      ***Metals & Mining (5.5%)***    Potash Corp. of Saskatchewan50034,23430,605CanadaRio Tinto plc ADS50031,17539,975UK*SUB-TOTAL* 65,40970,580      *N-CSRS Semi-Annual      Report May 31, 2003* *15*(Graphic      Omitted)**SEXTANT      INTERNATIONAL FUND** 
**INVESTMENTS****Issue****Number of Shares****Cost****Market Value****Country**     ***Oil & Gas Production (8.1%)***    EnCana1,000$35,020$36,650CanadaRepsol-YPF ADR2,00043,59231,480SpainTotal Fina Elf ADR50021,86436,775France*SUB-TOTAL* 100,476104,905      ***Paper Products (3.7%)***    Metso ADS2,10022,80220,706FinlandUPM-Kymmene Oyj2,00034,39928,430Finland*SUB-TOTAL* 57,20148,416      ***Photographic Equipment (4.2%)***    Canon ADR 1,00023,42642,740JapanFuji Photo Film ADR40010,05011,040Japan*SUB-TOTAL* 33,47653,780      ***Real Estate (2.2%)***    Intrawest 2,40041,34228,248Canada     ***Telecommunications (11.6%)***    American Movil2,00029,72536,520MexicoBCE1,60030,12035,232CanadaBritish Sky Broadcasting ADS*45011,06220,003UKPT Indosat ADR1,00020,95211,260IndonesiaTele Norte Leste Participacoes ADR3356,9334,010BrazilTelefonica ADS*58612,05819,988SpainTelesp Celular Participacoes ADR5,50044,97422,440Brazil*SUB-TOTAL* 155,824149,453      ***Transportation (4.4%)***    Canadian Pacific Ltd.1,20020,33828,512CanadaLan Chile ADS3,50024,63628,175Chile*SUB-TOTAL* 44,97456,687      ***Utilities-Electric (5.1%)***    Enel ADR80035,37227,968ItalyEnersis ADR4,00037,12519,200ChileKorea Electric Power ADS2,00031,96118,600Korea*SUB-TOTAL* 104,45865,768      ***Utilities-Gas (.3%)***    Transport de Gas del Sur ADR1,50018,8074,185Argentina          ***Total Investments (92.8%)*** 1,154,3401,199,847 Other Assets (net of liabilities) (7.2%)  92,800 ***Total Net Assets (100%)***  **$1,292,647**      ** Non-income producing*    
 
**16** *N-CSRSSemi-Annual        Report May 31, 2003***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, 2003
20022001200019991998**Net asset value at beginning of period** **$6.07****$7.24****$8.52****$8.32****$6.81****$6.61** *Income from investment operations*       Net investment income 0.03 0.02 0.04 0.43 0.13  0.04  Net gains or losses on securities (both            realized and unrealized) 0.24 (1.16) (1.30) 0.20 1.57  0.20 Total from investment operations  0.27 (1.14) (1.26) 0.63 1.70  0.24  *Less distributions*       Dividends (from net investment income) - (0.03) (0.02) (0.43) (0.12) (0.04) Distributions (from capital gains) - - - - (0.07) -Total distributions  - (0.03) (0.02) (0.43) (0.19) (0.04)**Net asset value at end of period** **$6.34****$6.07****$7.24****$8.52****$8.32****$6.81****Total return** **4.45%****(15.80)%****(14.80)%****7.62%****24.90%****3.57%**Ratios/supplemental data       Net assets ($000), end of period $1,293$1,150$1,445$1,736$1,162 $881 Ratio of expenses to average net assets 0.34%1.17%1.17%1.20%0.72%1.16%Ratio of net investment income to average netassets 0.65%0.20%0.34%4.74%1.74%0.54%**Portfolio turnover rate********2%****4%****6%****11%****17%****18%**        
**STATEMENT OF              ASSETS AND LIABILITIES******    *As of May 31, 2003*       **Assets**     Investments (Cost $1,154,340) $1,199,847  Cash 93,228  Dividends Receivable 1,669   Total Assets  $1,294,744    **Liabilities**    Other Liabilities 2,097  Total Liabilities 2,097    **Net Assets**  $1,292,647   ******Fund Shares Outstanding**  203,757    **Analysis of Net Assets**    Paid in Capital (unlimited shares authorized, without            par value) 1,395,973  Accumulated net realized loss on investments (148,833)  Unrealized net appreciation to Fund sharesoutstanding45,507   Net Assets applicable to Fund shares outstanding $1,292,647    **Net Asset Value, Offering and Redemption price per            share** $6.34
*(The accompanying notes are an integral part of these financialstatements)*
***N-CSRS              Semi-Annual Report May 31,2003*** *17*(Graphic            Omitted)**SEXTANT            INTERNATIONAL FUND** 
**STATEMENT              OF OPERATIONS**
*For the Semi-Annual period ended May 31,2003*
    **Investment Income**    Dividend income (net Foreign Tax of $1,928)$11,137  Miscellaneous income35   Gross investment income  $11,172**Expenses**    Investment advisor and administration fee 2,105  Custodian fees 1,360  Professional fees 713  Filing and registration fees 527  Insurance245  Printing and postage132  Meetings 63  Other expenses63  Total gross expenses 5,208  Less: Custodian fees waived (1,360)   Net expenses 3,848  Net investment income  7,324**Net realized loss on investments**    Proceeds from sales 22,529  Less: cost of securities sold based on identifiedcost26,149   Realized net loss (3,620)**Unrealized gain on investments**    End of period 45,507  Beginning of period(5,947)  Increase in unrealized gain for the period51,454   Net realized and unrealized gain on investments  47,834    **Net increase in net assets resulting fromoperations** **$55,158************
**STATEMENT OF              CHANGES IN NET ASSETS**  Period endedYear ended  May 31, 2003Nov. 30, 2002**INCREASE (DECREASE) IN NET ASSETS**   **From Operations:**    Net investment income  $7,324 $2,569 Net realized loss on investments (3,620) (70,706) Net increase (decrease) in unrealizedappreciation 51,454 (141,217) Net increase (decrease) in net assets fromoperations 55,158 (209,354)    **Dividends to shareowners from:**    Net investment income - (4,909) Capital gains distributions - - Total Distributions - (4,909)    **Fund share transactions**    Proceeds from sales of shares 98,498 58,704 Value of shares issued in reinvestment ofdividends - 4,897   98,498 63,601 Cost of shares redeemed(11,378)(143,789) Net increase (decrease) in net assets from sharetransactions 87,120 (80,188)**Total increase (decrease) in net assets** **$142,278****$(294,451)**    **NET ASSETS**    Beginning of period 1,150,369 1,444,820 End of period $1,292,647 $1,150,369    **Shares of the fund sold and redeemed**    Number of shares sold 16,000 9,019 Number of shares issued in reinvestment ofdividends - 807   16,000 9,826 Number of shares redeemed (1,912) (19,618)**Net increase (decrease) in number of sharesoutstanding****14,088****(9,792)**
 

*(The accompanying notes are an integral part of            these financial statements)*
*18* *N-CSRS                  Semi-Annual Report May 31, 2003*
**ADDITIONAL                PERFORMANCE INFORMATION**Average Annual              Returns (as of 6/30/2003, per regulatory requirement)  1                year 5                years10 years(Graphic Omitted)            Sextant Growth Fund+3.47%            +7.06%            +8.33%             Sextant International Fund-5.65%            -1.58%            +4.78%*Sextant Short-Term Bond Fund+6.49%+6.12% +5.88%*Sextant Bond Income Fund+15.28%+7.73%+6.88%
 
*Since inception, 9/28/95
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          
*N-CSRSSemi-Annual              May 2003* *19*
            issue discounts and/or purchased at market discounts. Cash dividends            from equity securities are recorded as income on the ex-dividenddate.                        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 Income            Fund, dividends are paid daily and distributed on the last business            day of each month. For the Sextant Growth Fund and SextantInternational            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. **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 theFunds            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            the investment performance of the Fund relative to a specifiedMorningstar            mutual fund category average. The Adviser has voluntarily undertaken            to limit expenses of Sextant Bond Income Fund to 0.60% through March            31, 2004 and waives its investment advisory and administrative fee            as to either Sextant bond fund completely so long as assets of that            Fund are less than $2 million.            For the six months ended May 31, 2003, Sextant Bond Income Fund and            Sextant Growth Fund incurred advisory expenses of $8,462 and$13,667,            respectively. Sextant International Fund incurred advisory expenses            of $2,105 and Sextant Short-Term Bond Fund incurred advisoryexpenses            of $7,774.            In accordance with the expense waiver noted above, for the sixmonths            ended May 31, 2003, Saturna Capital waived $5,866 of the SextantShort-Term            Bond Fund advisory fee and $3,530 of that of Sextant Bond IncomeFund.            Saturna Brokerage Services, Inc. (a broker-dealer subsidiary ofSaturna            Capital) acts as underwriter for the Trust, without compensation.            The Funds’ custodian, National City Bank Indiana, waived its            fees for earnings credits.            Saturna Brokerage Services, Inc. is the primary stockbroker used to            effect portfolio transactions for Sextant Growth Fund and Sextant            International Fund, and was paid $809 and $1,052, respectively in            commissions at discount rates during the six months ended May 31,            2003.            One trustee is also a director and officer of Saturna CapitalCorporation.            The unaffiliated trustees receive a fee of $100 per meetingattended,            and in the six months ending May 31, 2003, such fees totalled $700            for the Trust.**Investments**            At May 30, 2003, the net unrealized gain on investments for BondIncome,            Short-Term Bond, Growth and International were $295,772, $112,069,            $953,206, and $45,507, which consist of unrealized gains of$295,772,            $112,444, $1,251,345, and $298,674, and unrealized losses of $0,$375,            $298,139, and $253,167, respectively.            During the six months ended May 30, 2003, Bond Income purchased$155,197            of securities and sold $0. Comparable figures for Short-Term Bond            are $403,224 purchased and $246,200 sold; for Growth $287,018 and            $101,501; and for International, $240,363 and $22,529.
*20* *N-CSRS                    Semi-Annual Report May 31, 2003*
**Web: http://www.saturna.com                  E-mail: sextant@saturna.com**

 

 

(logo)

SaturnaCapitalMutual Funds

 

 

 

 

1-800/SATURNA                    (800/728-8762)*1-888/732-6262 for automated assistance,                     including fund prices*

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.

 

(graphic omitted)
SEXTANT                          Mutual Funds 
 

 

**SHORT-TERM                          BOND**

**BONDINCOME**

**GROWTH**

**INTERNATIONAL******

 

 

**SEMI-ANNUAL                          REPORT****May 31, 2003**

 
*N-CSRS                  Semi-Annual Report May 31, 2003* *21*
**CODE OF ETHICS**

 

**AUDIT COMMITTEE FINANCIALEXPERT**

(a) (1) (i) The Trustees of Saturna Investment Trust            determined, at their quarterly meeting of June 18, 2003, that the            Trust has at least one audit committee financial expert serving on            its audit committee.             (a) (2) (ii) Mr. John Moore, an independent Trustee (as defined for            investment companies), was deemed qualified and agreed to serve.

**CONTROLS ANDPROCEDURES**

 

**EXHIBITS**

Exhibits included with this filing:            (a) Code of Ethics.

 (b) Certifications.            (1) Nicholas Kaiser, President, Saturna Investment Trust            (2) Christopher Fankhauser, Treasurer, Saturna Investment Trust

 

 
*22* *N-CSRS                    Semi-Annual Report May 31, 2003*
**SIGNATURES**

Pursuant to the requirements of the SecuritiesExchange            Act of 1934 and the Investment Company Act of 1940, the registrant            has duly caused this report to be signed on its behalf by theundersigned,            thereunto duly authorized.**SATURNA INVESTMENT TRUST**            By:            /s/ Nicholas Kaiser            Nicholas Kaiser, President             Date: July 30, 2003            Pursuant to the requirements of the Securities Exchange Act of 1934            and the Investment Act of 1940, this report has been signed below            by the following persons on behalf of the registrant and in thecapacities            and on the dates indicated.

By:            /s/ Nicholas Kaiser            Nicholas Kaiser, President             Date: July 30, 2003

            By:            /s/ Christopher Fankhouser             Christopher Fankhouser, Treasurer            Date: July 30, 2003

 
*N-CSRS                  Semi-Annual Report May 31, 2003* *24*
  

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