| Sextant

**Mutual Funds** | (graphic omitted) |
|---------------------------|-------------------|

 

Fellow Shareowners:  Again in 2002, bonds gained and stocks fell. In the three years since year-end  1999, assets in all stock mutual funds are off by a third. But much of thestock  market decline is offset by appreciation in bonds and real estate.Economically,  growth in the consumer and government sectors balances the decline inindustry.  The Federal Reserve cut short-term interest rates to their lowest levels in  41 years, further boosting bond prices. This is now stimulating the economy,  and we expect interest rates to climb slowly during 2003.  Sextant Bond Income and Sextant Growth funds again significantly betteredtheir  Morningstar peer group averages. Only Sextant International, hurt mostly by  losses in financial and technology issues, underperformed its peer groupaverage.  The no-load Sextant Funds are designed to address a broad spectrum ofinvestment  needs. All stress low operating expenses and employ a "fulcrum"advisory  fee structure that rewards or penalizes Saturna Capital for investmentresults.  For the fiscal year ended November 30, 2002, comparative total returns andpercentile  category rankings (1 is best) are:
Sextant FundTotal Returnvs. MorningstarTotal Return12-mo. Rank (group size)*Short-Term Bond4.90%Short-Term Bonds3.69%49 (241)Bond Income9.02%Long-Term Bonds4.84%2 (114)Growth-10.51%Large Growth-15.32%13 (718)International-15.80%Foreign Stock-12.31%79 (868)
Further information on each Fund is found in the followingsections    of this report. Our portfolio managers welcome your comments andsuggestions.    The entire staff works to minimize operating expenses, which are well below    industry standards. In the footnotes, you will notice another unusualfeature    of the Sextant funds: on average, almost 25% of each Sextant Fund is owned    by the trustees, officers, and their immediate families. We invite you to    invest 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)
*The 12-month Rank shows how each Fund ranks (from 1 best to    100 worst) in its Morningstar peer category for the year ended November 30,    2002 - please see next page for more performance information.

December 27, 2002

*Additional Performance Information*
**Average Annual Total Returns** (as of12/31/2002)1 year5 years10 yearsSextant Growth Fund-18.37%4.35%7.93%^Sextant International Fund-22.82%-1.77%3.21%*Sextant Short-Term Bond Fund6.95%7.28%5.89%*Sextant Bond Income Fund13.62%7.36%6.35%^**Performance data quoted in this report represents pastperformance,        is before any taxes payable to shareowners, and is no guarantee offuture        performance. The investment return and principal value of investments        in the Funds fluctuate daily, and an investor's shares when redeemed may        be worth more or less than the original cost.        Morningstar, Inc. is an independent fund performance monitor. Rankings        are determined monthly from total returns by Morningstar, by category        as determined by Morningstar. The average total return for a category        is determined by Saturna Capital, utilizing the Morningstar database.        Results are shown for twelve months because of the Sextant Fundsperformance        fee advisory structure.
*since inception, 9/28/1995            **since inception, 3/1/1993            ^fundchanged investment objectives &policies             on 9/28/1995; results prior to that date may             not be meaningful

**REPORT OF INDEPENDENTCERTIFIED            PUBLIC ACCOUNTANTS**

            To the Shareholders and Board of Trustees            Saturna Investment Trust            We have audited the accompanying statement of assets and liabilities            of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund,Sextant            Growth Fund and Sextant International Fund, each a series of theSaturna            Investment Trust, including the schedules of investments as ofNovember            30, 2002, and the related statements of operations for the year then            ended, and the changes in net assets for each of the two years then            ended, and the financial highlights for each of the five years then            ended. These financial statements and financial highlights are the            responsibility of the Trust’s management. Our responsibility            is to express an opinion on these financial statements and financial            highlights based on our audits.             We conducted our audits in accordance with auditing standardsgenerally            accepted in the United States of America. Those standards require            that we plan and perform the audit to obtain reasonable assurance            about whether the financial statements and financial highlights are            free of material misstatement. An audit includes examining, on atest            basis, evidence supporting the amounts and disclosures in thefinancial            statements. Our procedures included confirmation of securities owned            as of November 30, 2002, by correspondence with the custodian and            broker. Our audit also includes assessing the accounting principles            used and significant estimates made by management, as well asevaluating            the overall financial statement presentation. We believe that our            audits provide a reasonable basis for our opinion.             In our opinion the financial statements and financial highlightsreferred            to above present fairly, in all material respects, the financialposition            of Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant            Growth Fund, and Sextant International Fund, as of November 30,2002,            the results of their operations for the year then ended, and thechanges            in their net assets for each of the two years then ended and their            financial highlights for each of the five years in the period then            ended, in conformity with accounting principles generally accepted            in the United States of America.

TAIT, WELLER &BAKER

            Philadelphia, Pennsylvania            December 13, 2002
*2* *November 30,          2002 Annual Report*(graphic omitted)**SEXTANT        SHORT-TERM BOND FUND** ******INVESTMENTS*****Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value**********As of November 30, 2002* ***Auto/Truck Manufacturing (4.3%)***   A-Daimler Crysler Corporation6.90% 9/1/2004$90,000 $94,599 ***Banking (12.2%)***   A+Australia & New Zealand Bank6.25% 2/1/200485,000 88,069ABankers Trust (DB) sub notes8.25% 5/1/200585,00092,020A+JP Morgan7.625% 9/15/200480,00084,974  *SUB-TOTAL*250,000 265,063 ***Building Products (3.6%)***   A-Lowe's Companies7.50% 12/15/200570,00078,169 ***Chemicals (3%)***   A-Praxair6.15% 4/15/200365,000 65,516 ***Computer (7.1%)***   AA-Hewlett Packard7.15% 6/15/200570,00075,092BBBSun Microsystems7.35% 8/15/200480,000 80,175  *SUB-TOTAL*150,000155,267 ***Cosmetics & Toiletries (3.5%)***   BBBDial Corporation6.625% 6/15/200375,000 76,048 ***Finance & Insurance (16.2%)***   AAllliance Capital Management5.625% 8/15/200665,00067,769A+International Finance AIG5.75% 10/15/200695,00096,831A-Lincoln National Insurance7.25% 5/15/2005100,000106,269A-Washington Mutual Financial 8.25% 6/15/200575,00082,676 ***SUB-TOTAL*335,000 353,545 ***Food (2.3%)***   ACoca Cola Enterprises7.875% 2/1/200250,000 50,095 ***Machinery (8.5%)***   ADeere6.55% 7/15/200490,000 94,407AEaton 6.95% 11/15/200485,00090,207  *SUB-TOTAL*175,000 184,614 ***Medical Drugs (11.6%)***   AAABristol Myers Squibb4.75% 10/1/200690,00092,236ACardinal Health6.50% 2/15/200475,000 77,586A-Wyeth7.90% 2/15/200575,000 81,525  *SUB-TOTAL*240,000 251,347 ***Oil & Gas (5%)***   BBB+Union Oil of California7.20% 5/15/2005100,000 107,116 ***Publishing (2.2%)***   A-Tribune6.875% 11/1/200645,00048,453 ***Retail (2.3%)***   BBBSafeway6.05% 11/15/200350,000 50,504 ***Telecommunications (4.2%)***   BBBSprint Capital5.875% 5/1/2004100,000 92,287 ***Utilities (9.4%)***   AA-Florida Power & Light6.875% 12/1/200595,000102,418AA-Southwestern Bell Telephone6.625% 7/15/200795,000101,461  *SUB-TOTAL*190,000203,879     **Total Investments (93.1%)****(Cost = $1,962,880)****$1,935,000****2,026,407**Other Assets (net of liabilities) (6.9%)  150,650**Total Net Assets (100%)**  **$2,177,057****Ratings are the lesser of S&P orMoody's        (unaudited)*   *November        30, 2002 Annual Report* *3*(Graphic        Omitted)**FINANCIALHIGHLIGHTS** 
**SEXTANTSHORT-TERM          BOND FUND***Selected data per share of capital stock outstanding        throughout the year***Year ended November 30,**  **2002****2001****2000****1999****1998****Net asset value at beginning of year** **$5.10****$4.95****$4.92****$5.04****$4.99** *Income from investment operations*      Net investment income 0.27 0.26 0.27  0.26  0.27  Net gains or losses on securities (both realized andunrealized) (0.02) 0.14 0.03  (0.12) 0.05 **Total from investment operations**  0.25 0.40  0.30  0.14  0.32  *Less distributions*      Dividends (from net investment income) (0.28) (0.25) (0.27) (0.26) (0.27) Distributions (from capital gains)-----Total distributions  (0.27) (0.25) (0.27) (0.26) (0.27)**Net asset value at end of year** **$5.07****$5.10****$4.95****$4.92****$5.04****Total Return** **4.90%****8.37%****6.20%****2.88%****6.67%**       Ratios / Supplemental Data      Net assets ($000), end of year $2,177$2,189$2,555 $1,795 $1,908 Ratio of expenses to average net assets* 0.93%0.51%0.61%0.47%0.48%Ratio of net investment income to average net assets 5.23%5.45%5.45%5.22%5.57%**Portfolio turnover rate********28%****28%****12%****21%****71%***For the above years, 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 netassets        would be .21%, .43%, .41%, .57% and .44%, respectively.
 

**STATEMENT OFASSETS          AND LIABILITIES**
*****As of November 30, 2002*    **Assets**     Bond investments (Cost $1,962,880) $2,026,407 Cash 120,463 Interest Receivable 31,919  Total Assets$2,178,789   **Liabilities**   Other Liabilities 1,732  Total Liabilities1,732   **Net Assets**  $2,177,057   **Fund shares outstanding**  429,235   **Analysis of Net Assets**   Paid in Capital (unlimited shares authorized, without par        value) 2,149,250 Accumlated net realized loss (35,720) Unrealized net appreciation on investments 63,527  Net Assets applicable to Fund shares outstanding$2,177,057   **Net Asset Value, Offering and Redemption price pershare** **$5.07**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*4* *November 30,          2002 Annual Report***SEXTANTSHORT-TERM        BOND FUND** 
**STATEMENT OFOPERATIONS**(Graphic          Omitted)****   *For the year ended November 30, 2002***Investment Income**     Interest income $135,792 Amortization of bond premium (11,331) Accretion 11,125  Gross investment income$135,586   **Expenses**   Investment advisor and administration fees 13,566 Professional fees 3,334 Filing and registration fees 3,272 Custodian fees 2,065 Other expenses 1,085 Insurance 902 Printing and postage 795 Total gross expenses 25,019 Less advisor fees waived (2,517) Less custodian fees waived (2,065) Net expenses 20,437  Net investment income115,149   **Net realized gain on investments**   Proceeds from sales 618,782 Less: cost of securities sold based on identifiedcost 617,368  Realized net gain1,414   **Unrealized gain on investments**   End of year 63,527 Beginning of year 75,853 Decrease in unrealized gain for the year (12,326)  Net realized and unrealized loss(10,912)   **Net increase in net assets resulting fromoperations** **$104,237**
*(The accompanying notes are an integral part of thesefinancial    statements)*
*November 30, 2002        Annual Report* *5*****(Graphic        Omitted) **STATEMENT OF        CHANGES IN NET ASSETS** 
**SEXTANTSHORT-TERM          BOND FUND******   **Year ended****Year ended**   **Nov. 30, 2002****Nov. 30, 2001****INCREASE (DECREASEE) IN NET ASSETS**    **From Operations**     Net investment income $115,149$116,659 Net realized gain (loss) on investments 1,414(14,763) Net increase (decrease) in unrealized appreciation (12,326)80,934  Net increase in net assets104,237182,830   **Dividends to shareowners from**   Net investment income (118,239)(114,823)   **Fund Share transactions**   Proceeds from sales of shares 439,793351,703 Value of shares issued in reinvestment ofdividends 117,683113,922   557,476465,625 Cost of shares redeemed (555,278)(899,416)  Net increase (decrease) in net assets2,198(433,791)**Total decrease in net assets** ******$(11,804)****$(365,784)**   **NET ASSETS**   Beginning of year 2,188,8612,554,645 End of year $2,177,057$2,188,861   **Shares of the fund sold and redeemed**   Number of shares sold 86,06670,340 Number of shares issued in reinvestment of dividends 23,08722,596   109,15392,936 Number of shares redeemed (109,001)(180,306)**Net increase (decrease) in number of sharesoutstanding** **152****(87,370)**
*(The accompanying notes are an integral part of thesefinancial    statements)*
**DISCUSSION        OF SEXTANT SHORT-TERM BOND FUND PERFORMANCE**
         
(unaudited)
**FISCAL YEAR2002**For the fiscal year, the Sextant Short-Term Bond Fund returned 4.90%.    The share price moved in a range of $5.03 to $5.17 or 2.78%. The thirty-day    SEC yield fell to 3.21% in line with lower market rates. The Fund ranked in    the top 49% of 241 funds in the Morningstar “Short-term Bond”category.    For the last five years, the Fund earned 5.86% annualized total return,ranking    in the top 47% of 159 funds in its Morningstar category. At November 30,2002,    the Fund held Morningstar’s 3-star rating (judged against 194short-term    bond funds). For the third year, the Fund substantially outperformed most    equity portfolios as the stock market declined further.
*6* *November 30,          2002 Annual Report*
**FACTORS AFFECTINGPERFOMANCE**Over the last twelve months, the Federal Reserve lowered the FederalFunds    rate from 2.00% to 1.25% to boost the economy. Long US Treasury rates moved    below five percent unleashing more mortgage refinancing and home buying.Corporate    bankruptcies in June triggered a stock market decline and flight to quality    to US Treasury debt. Credit spreads widened, especially in credits of BBB    and lower. New scrutiny for corporate accounting and improved profitsrestored    market confidence returning AAA spreads to the levels seen a year ago. The    BBB sector continues to lag the AAA/AA group. The Fund’s portfolio was    underweight US Treasuries and owns BBB rated corporate bonds which wasdetrimental    to total return. The Fund’s average maturity continued at less thanthree    years. 

**LOOKINGFORWARD**    We expect the US economy to grow approximately 3% in 2003, corporate profits    to increase around 10%. The Republican’s success in November 2002 will    lead to more fiscal stimulus and tax cuts in 2003. Low mortgage rates and    low prices have supported consumer spending, however we look formanufacturing    and capital spending to be the engine of growth in 2003. The Federal Reserve    will push short-term interest rates toward 3% and investment grade spreads    should narrow as profits recover. The Fund will continue to overweight high    grade corporate notes over other instruments.

**MANAGEMENT FEECALCULATIONS**    The Sextant Short-Term Bond Fund calculates part of its management fee based    on a comparison of the Fund’s return to the average return of theMorningstar    category Short-Term Bond. The Fund’s 12-month return (4.90%) differed    by more than one percent from that of the average (3.69%) on November 30,    2002. Therefore, a performance bonus adjustment of 0.10% was added to the    basic 0.60% annual management fee for the month of December 2002. 

**COMPARISON TOINDEX**    Comparison of any mutual fund to a market index must be made bearing in mind    that the Index is unmanaged, and expense-free. The graph below compares$10,000    invested in the Fund at its inception in September 1995, compared to asimilar    amount invested in the Salomon Brothers Gov/Corp Investment Grade Bond Index    for maturities between one and three years. The graph shows that a $10,000    investment made on September 1995 would have risen to $14,845 in the Fund    and $15,710 in the Index. The returns shown do not reflect the deduction of    income taxes that an investor could pay on income received or the sale of    profitable investments. 

 

**Sextant Short-Term Bond Fund vs. Salomon Gov/Corp 1-3 yr.(unaudited)**

*(graph omitted)*

 

 
*November 30, 2002        Annual Report* *7***INVESTMENTS** 
****SEXTANT BOND          INCOME FUND****(Graphic          Omitted)***Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value***   *As of November 30, 2002* ***Banking (10.2%)***   A+Chase Manhattan7.125% 6/15/2009$50,000 $53,592ACiticorp7.25% 10/15/201150,000 55,002A-Comerica Bank7.125% 12/1/201350,000 51,666A+Norwest Financial6.85% 7/15/200950,000 54,555  *SUB-TOTAL*200,000 214,815 ***Building Products (3.2%)***   BBB+Masco Corporation7.125% 8/15/201360,00067,215 ***Chemicals (3%)***   A-Air Products & Chemicals8.75% 4/15/202150,00064,122*****Computer (1.5%)*********ADell Computer6.55% 4/15/200830,000 30,195 ***Diversified Financial Services (3.4%)***   AAAGeneral Electric Capital 8.125% 5/15/201260,00070,635 ***Electric Utilities (2.7%)***   A-Commonwealth Edison7.50% 7/1/201350,000 57,410 ***Electronics (2.6%)***   A-Koninlijke Phillips Electronics 7.25% 8/15/201350,000 54,127 ***Food (9.3%)***   BBBConagra7.875% 9/15/201050,000 57,045A+Hershy Foods6.95% 8/15/201250,00056,242A-HJ Heinz6.00 % 3/15/201275,00082,676  *SUB-TOTAL*175,000195,963 ***Insurance (6.6%)***   AAllstate7.50% 6/15/201350,000 57,768AProgressive 7.00% 10/1/201375,00080,988  *SUB-TOTAL*125,000138,756 ***Investment Finance (5.3%)***   AA-Morgan Stanley Dean Witter6.75% 10/15/201350,000 52,932AAPaine Webber Group7.625% 2/15/201450,000 58,420  *SUB-TOTAL*100,000 111,352 ***Machinery (6%)***   ACaterpillar9.375% 8/15/201140,00050,746A+Dover6.25% 6/1/200870,00076,016  *SUB-TOTAL*110,000126,762*8* *November 30,          2001 Annual Report***INVESTMENTS** 
****SEXTANT BOND          INCOME FUND****(Graphic          Omitted)***Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value***      ***Medical Supplies (2.1%)***   A+Becton Dickinson7.15% 10/1/2009$40,000 $44,626 ***Oil & Gas (5.7%)***   ABaker Hughes6.00% 2/15/200970,00072,907ATexaco Capital8.625% 6/30/201040,000 47,487  *SUB-TOTAL*110,000120,394 ***Retailing (11.1%)***   ADayton Hudson (Target Stores)10.00% 1/1/201150,000 64,969ALowe's Companies8.25% 6/1/201050,000 59,275A+May Department Stores8.00% 7/15/201250,000 57,297AAWal-Mart Stores7.25% 6/1/201345,00052,727  *SUB-TOTAL*195,000 234,268 ***Telecommunications (2.5%)***   AA-GTE6.90% 11/1/200850,000 52,682 ***Transportation (6.3%)***   BBB+Southwest Airlines6.50% 3/1/201275,00076,973A-US Freightways 8.50% 4/25/201050,000 54,523  *SUB-TOTAL*125,000 131,496 ***US Government (11.8%)***   AAAUS Treasury Bond5.50% 2/15/2008225,000247,852     ***Total Investments (91.8%)*****(Cost = $1,809,092)****$1,725,000****1,932,475**Other Assets (net of liabilities) (8.2%)  172,698***Total Net Assets (100%)***  **$2,105,173**    *Ratings are the lesser of S&P or Moody's (unaudited)   
 
*November 30, 2001        Annual Report* *9*
 
******FINANCIAL HIGHLIGHTS** 
**SEXTANT BONDINCOME          FUND**(graphic          omitted)Selected data per share of capital stock outstandingthroughout        the year        **For Year Ended November 30,**    **2001****2001****2000****1999****1998** **Net asset value at beginning of year** **$4.81****$4.56****$4.59****$5.00****$4.83****** Income from investment operations       Net investment income 0.26 0.30 0.29  0.30  0.29    Net gains or losses on securities (both realized andunrealized) 0.16 0.25 (0.03) (0.41) 0.17   Total from investment operations  0.42 0.55 0.26  (0.11) 0.46    Less distributions       Dividends (from net investment income)         (0.26) (0.30) (0.29) (0.30) (0.29)   Distributions (from capital gains) -  -  - - -  Total distributions  (0.26) (0.30) (0.29) (0.30) (0.29)  **Net asset value at end of year********$4.97****$4.81****$4.56****$4.59****$5.00********Total return********9.02%****12.40%****6.05%****(2.20)%****10.08%** Ratios/supplemental data       Net assets ($000), end of year  $2,105 $1,965 $1,505  $885  $1,345   Ratio of expenses to average net assets* 0.72%0.34%0.35%0.39%0.30% Ratio of net investment income to average net assets 5.40%6.71%6.56%6.31%6.24% **Portfolio turnover rate********29%****30%****0%****20%****0%** *For each of the above years, all or a portion of theoperating        expenses were waived. If these costs had not been waived, the resulting        increases to the ratio of expenses to average monthly net assets would        be .34%, .72%, .64%,.66%, and .61%, respectively. 
**STATEMENT OFASSETS          AND LIABILITIES***As of November 30, 2002*         **Assets**     Bond investments (cost $1,809,092) $1,881,355 Cash 86,525 Receivable for security sales 50,038  Interest receivable 35,182 Insurance reserve premium 1,221   Total Assets$2,105,441**Liabilities**   Other Liabilities 268  Total Liabilities268**Net Assets**  **$2,105,173****Fund Shares Outstanding**  423,781**Analysis of Net Assets**   Paid in capital (unlimited shares authorized, without par        value) 2,030,738 Accumlated net realized loss  (48,948) Unrealized net appreciation on investments 123,383  Net Assets applicable to Fund shares outstanding$2,105,173**Net Asset Value, Offering and Redemption price pershare****************$4.97***(The accompanying notes are an integral part of thesefinancial  statements)**10* *November 30,          2002 Annual Report*(graphicomitted)**SEXTANT BOND INCOME FUND** 
**STATEMENT OFOPERATIONS******  *For the year ended November 30, 2002***Investment income**     Interest income $128,066 Amortization of bond premium (7,144) Accretion 168  Gross investment income$121,090**Expenses**   Investment advisor and administration fees 11,975 Filing and registration fees 3,343 Professional fees 3,264 Other expenses 1,050 Custodian fees 789 Printing and postage 700 Insurance  650 Total gross expenses 21,771 Less advisor fees waived (6,808) Less custodian fees waived (789) Net expenses 14,174  Net investment income106,916**Net realized loss on investments**   Proceeds from sales 549,603 Less cost of securities sold (based on identified cost) 563,856  Realized net loss(14,253)**Unrealized gain on investments**   End of year 123,383 Beginning of year 48,912 Increase in unrealized gain for the period 74,471  Net realized and unrealized gain 60,218**Net increase in net assets resulting fromoperations************$167,134**   
 
**STATEMENT OFCHANGES      IN NET ASSETS** 
       **Year ended****Year ended**  **Nov. 30, 2002****Nov. 30, 2001****INCREASE IN NET ASSETS**   ***From Operations***    Net investment income$106,916$104,689 Net realized loss on investments(14,253)(2,114) Net increase in unealized appreciation74,47189,413 Net increase in net assets 167,134191,988   ***Dividends to shareowners from***  Net investment income(107,024)(104,689)  ***From tund share transactions***  Proceeds from sales of shares365,971578,938 Value of shares issued in reinvestment of dividends103,671103,332  469,642682,270 Cost of shares redeemed(389,165)(310,083) Net increase in net assets 80,477372,187**Total increase in net assets********$140,587****$459,486**  **NET ASSETS**  Beginning of year1,964,5861,505,100 End of year$2,105,173$1,964,586  **Shares of the fund sold and redeemed**  Number of shares sold75,292121,443 Number of shares issued in reinvestment of dividends21,38921,787  96,681143,230 Number of shares redeemed(80,967)(65,605)**Net increase in number of shares outstanding********15,714****77,625***(The accompanying notes are an integral part of thesefinancial  statements)**November 30, 2002      Annual Report* *11***DISCUSSION      OF SEXTANT BOND INCOME FUND PERFORMANCE**
(unaudited)
**FISCAL YEAR 2002**  For the fiscal year ending November 30, 2002, the Sextant Bond Income Fundreturned  9.02%. For the fiscal year, the Fund ranked in the top 2% of the 114 funds in  the Morningstar “Long-term Bond” category and heldMorningstar’s  top “5-star” rating (judged against 91 long-term bond funds). For  the last five years, the Fund has provided a 6.97% annualized total return and  ranks in the top 9% of 73 funds in its Morningstar category. The Fund’s  most recent thirty-day SEC yield is 4.60%, less than the 6.44% last year. This  reflects lower market rates and a shorter average maturity. The majority of  the Fund’s risk and return comes from an average portfolio maturity that  historically exceeded its peers. 

**FACTORS AFFECTING PASTPERFORMANCE**  As long term interest rates approached their low for this cycle, theFund’s  average effective maturity was reduced from over 10 years to less than 8.Under  normal circumstances, the Fund’s policy is to maintain a dollar-weighted  average maturity of ten years or more. However, with interest rate levelslower  than they have been in over 40 years, the price risk of holding long-termbonds  is excessive in light of the Fund’s capital preservation goal.   Corporate bankruptcies in June triggered a stock market decline and flight to  quality into US Treasury debt. Credit spreads widened. This widening waspronounced  in credits of BBB and lower. New Scrutiny for corporate accounting and higher  profits have restored market confidence. AAA spreads have returned to thelevels  seen one year ago. The BBB sector continues to lag the AAA/AA group. TheFund’s  portfolio was underweight US Treasuries and owns a few BBB rated corporatebonds  which reduced total return.  Investment-grade corporate paper produced a total return of 5.49% as measured  by the Solomon Brothers Corporate Index (SBCRP) while US Treasury paper asmeasured  the Solomon Brothers Treasury Index (SBGT) returned 7.81%. As expected during  a flight to quality, the Sextant Bond Income Fund’s 9.04% return was less  than the 10.09% one-year return on the Solomon US Treasury Index 10+ years.  The Bond market benefited from the marked weakness in equity prices. For the  third year, the Fund easily outperformed most equity portfolios. 

**LOOKING FORWARD**For 2003, we expect long-term US Treasury rates will spend another year  between 6.25% to 4.75%. We expect the US economy to grow 3% in 2003 andcorporate  profits to increase around 10%. The Republican’s success in November 2002  is leading to more fiscal stimulus and tax cuts in 2003. Low mortgage rates  and low prices supported consumer spending and the economy in 2002, however  we look for manufacturing and capital spending to be the engine of growth in  2003 and beyond. We expect the Federal Reserve Bank to push short-terminterest  rates toward 3% and investment grade spreads to narrow as corporate profits  recover. The Fund will continue to overweight high grade corporate notes over  other instruments.  Commodity prices are rising, but overall inflation, remains subdued. We expect  the recovery to manifest itself slowly. We do not expect a cyclical rise in  rates until after the economic recovery is further underway. This still leaves  investors with an extended period of time that is favorable for investing in  investment grade corporate notes and bonds.
*12* *November 30,        2002 Annual Report*
**MANAGEMENT FEECALCULATIONS**  The Sextant Bond Income Fund calculates its management fee based on acomparison  of the Fund’s return to the return of Morningstar’s “Long-term  Bond” category. This category consists of mutual fund portfolios that“focus  on corporate and other investment grade issues with an average duration ofmore  than six years or an effective average maturity of more than ten years.”  The Fund’s 9.02% 12-month return handsomely exceeded that of the index  (4.84%) on November 30, 2002. Therefore, the basic 0.60% management fee was  increased by the maximum amount of 0.20% to 0.80% for the month of December  2002 because the Fund outperformed its benchmark index by more than 2%. 

**COMPARISON TOINDEX**  Comparison of any mutual fund to a market index must be made bearing in mind  that the index is unmanaged, and expense-free. Conversely, the fund will (1)  be actively managed, (2) have an objective other than mirroring the index,such  as limiting risk, (3) bear transaction and other costs, (4) stand ready to buy  and sell its securities to shareowners on a daily basis, and (5) provide awide  range of services. The graph below compares $10,000 invested in the Fund at  its inception, compared to a similar amount invested in The Salomon Brothers  Broad Investment-Grade Bond Index. The graph shows that the investment at the  beginning of October 1993 would have risen to $17,715 in the Fund and $19,513  in the Index. The September 1995 changes in this Fund’s investment policy  limit the usefulness of this comparison. The returns shown do not reflect the  deduction of income taxes that an investor could pay on income received or the  sale of profitable investments. 

 

**Sextant Bond Income Fund vs. Salomon Broad Investment Grade  Bond Index (unaudited)**

*(graph omitted)*

 
*November 30, 2002      Annual Report* *13***INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)***Issue******Number of Shares******Cost******Market Value********As of November 30, 2002****Common Stocks (90.4%)*********************    ***Banking (12%)***   Convergys* 3,500 $129,041 $60,340Frontier Financial 4,000  90,207  102,400Washington Mutual 6,750 44,124  242,865 *SUB-TOTAL* 263,372 405,605***Computers (16.5%)***   3 Com*10,00051,89151,500Adobe Systems 4,800  50,490  141,744Apple Computer* 5,500 102,348 85,250Intuit* 3,000 131,758 161,820Oracle*  8,000  28,059 96,969Phoenix Technologies Ltd.* 3,062  29,148 19,413 *SUB-TOTAL* 393,694 556,687***Construction (9.6%)***   Building Materials Holding* 4,000  44,171  53,640Lowe's Companies4,000135,141166,000Weyerhaeuser 2,000  93,867  105,200 *SUB-TOTAL* 273,179 324,840***Electronics (3.2%)***   Advanced Micro Devices* 10,000 41,708 85,000Agilent Technologies* 1,200  57,828  23,292 *SUB-TOTAL* 99,536 108,292***Hotels & Motels (2%)***   Westcoast Hospitality* 15,000 111,771 80,925***Investments (9.5%)***   Neuberger Berman2,500109,92084,525Schwab (Charles) 20,415 9,117 235,181 *SUB-TOTAL*119,037319,706***Machinery (1.2%)***   Regal-Beloit  2,000  52,106  41,420***Medical (21.2%)***   Affymetrix* 2,000  26,863 54,200Amgen*2,64034,598124,608Barr Laboratories*2,000159,489132,060Caremark Rx* 3,000 60,125 52,980Ligand Pharmaceuticals* 5,000  56,430  25,550Lilly (Eli) 800  77,567  54,640Pharmaceutical Product Development* 9,000 80,608 269,550 *SUB-TOTAL* 495,680 713,588***Metal Ores (1.2%)***   Phelps Dodge* 1,330  76,218  41,788***Oil &Gas (2%)***   Noble* 2,000  14,212  67,900***Publishing (1.5%)***   Wiley (John) & Sons, Class A 2,400  47,112  51,120***Retail (3.1%)***   Bed Bath & Beyond 3,000 100,052 104,070*14* *November 30,        2002 Annual Report***INVESTMENTS** **SEXTANTGROWTH        FUND**(graphic omitted)***Issue******Number of Shares******Cost******Market Value*******  ***Transportation (7%)***   Airborne Freight 5,000  60,308  71,650Alaska Air* 3,000 53,346 63,510Southwest Airlines 6,000 90,162 99,000 *SUB-TOTAL* 203,816 234,160    ***Total Investments (90.4%)*** **$2,249,785****3,050,101**Other Assets (net of liabilities) (9.6%)   322,976***Total Net Assets (100%)***  **$3,373,077**    *Non-income producing   
 
 *Trustees and Officers (unaudited)* 
**Name and (age)        Address**
**Position(s) held with      Trust and Length of       Time Served****Principal Occupation(s)       during past 5 Years****Number of Portfolios in      Fund Complex      overseen by Trustee****Other Directorships      Held by Trustee****INDEPENDENT TRUSTEES**A. Herbet Ershig (64)      22 Shorewood Drive      Bellingham, WA 98225Independent Trustee        since 1997President (now retired), Ershigs, Inc.        (industrial fabrication)FiveNoneGary A. Goldfogel (44)      1500 N. State Street      Bellingham, WA 98226Independent Trustee        since 1995Medical Examiner (pathologist)        Owner, Avocet Environmental Testing (laboratory)FiveNoneJohn E. Love (70)      1002 Spokane Street      Garfield, WA 99130Independent Trustee        since 1987Owner, J.E. Love Co., (agricultural equipmentmanufacturer)FiveNoneJohn S. Moore (71)      346 Bayside Road      Bellingham, WA 98225Independent Trustee        since 1993Professor (now retired), College of Business and Economics,      Western Washington UniversityFiveNone**INTERESTED TRUSTEES**Nicholas F. Kaiser, CFA (56)      1300 N. State Street      Bellingham, WA 98225President and Trustee        since 1989President, Saturna Capital Corporation        President, Saturna Brokerage ServicesSevenAmana Mutual Funds Trust**OFFICERS WHO ARE NOT TRUSTEES**Phelps S. McIlvaine (49)      1300 N. State Streeet      Bellingham, WA 98225Vice President        since 1994Vice President, Saturna Capital Corporation        Treasurer, Saturna Brokerage ServicesN/AN/AChrisopher R. Fankhauser (30)      1300 N. State Street      Bellingham, WA 98225Treasurer        since 2002Manager of Operations, Saturna Capital CorporationN/AN/AEthel D. Beltran (30)      1300 N. State Street      Bellingham, WA 98225Secretary        since 2001Corporate Administrator, Saturna Capital Corporation [since      2000]       Administrator, Cytel Corporation [1994-1999]N/AN/ATerm of Office: Each Trustee serves for thelifetime      of the Trust or until he dies, resigns, is removed, or not re-elected by      the shareowners. Each officer serves a one-year term subject to annualreappointment      by the Trustees.      Mr. Kaiser is an interested person of the Trust by reason of his positions      with the Trust's adviser and underwriter. Mr. McIlvaine is the primarymanager      of the Fund's portfolio. Saturna Capital Corporation is the Fund'sadvisor,      and Saturna Brokerage Services, Inc. is the distributor.*November 30, 2002      Annual Report* *15***FINANCIALHIGHLIGHTS** 
****SEXTANT GROWTH        FUND****(graphic        omitted)Selected data per share of capital stock outstandingthroughout      the year                **Year Ended November 30,**   **2002****2001****2000****1999****1998****Net asset value at beginning of year**  **$11.90****$13.16****$12.68****$9.29****$9.58** Income from investment operations       Net investment income  (0.05) (0.02) (0.07) (0.06) 0.02  Net gains or losses on securities (both realized andunrealized)  (1.21) (1.24) 1.36 4.26 (0.09)        Total from investment operations   (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****** **$10.64****$11.90****$13.16****$12.68****$9.29****Total Return****** **(10.51)%****(9.57)%****10.16%****44.76%****(0.97)%**Ratios / Supplemental Data       Net assets ($000), end of year  $3,373$3,792$3,862 $3,116 $2,139 Ratio of expenses to average net assets  1.11%0.78%1.05%1.12%0.66%Ratio of net investment income to average net assets  (0.48)%(0.18)%(0.51)%(0.50)%0.19%**Portfolio turnover rate****** **15%****8%****20%****28%****41%**        ****
**STATEMENT OF ASSETS        AND LIABILITIES***As of November 30, 2002*         **Assets**  ****Investments (cost $2,249,785) $3,050,101****Cash 326,154****Dividends receivable 1,248****Insurance reserve premium 1,214**** Total Assets3,378,717**Liabilities**  ****Other Liabilities 5,640**** Total Liabilities5,640**Net Assets**  **$3,373,077****Fund Shares Outstanding**  316,933**Analysis of Net Assets**  ****Paid in Capital (unlimited shares authorized, without par      value) $2,633,156****Accumlated net realized loss (60,395)****Unrealized net appreciation on investments 800,316**** Net Assets applicable to Fund shares outstanding$3,373,077**Net Asset Value, Offering and Redemption price pershare** **$10.64**
*(The accompanying notes are an integral part  of these financial statements)*
*16* *November 30,        2002 Annual Report*(GraphicOmitted)**SEXTANT GROWTH FUND** 
**STATEMENT OFOPERATIONS******  ***For the year ended November 30, 2002*****Investment income**    ****Dividend income $22,234****Miscllaneous income 50**** Gross investment income22,284**Expenses**  ****Investment adviser and administration fees 28,460****Professional fees 5,035****Custodian fees 2,303****Filing and registration fees 1,766 Other expenses 1,757****Insurance  1,548****Printing and postage 1,109****Total gross expenses 41,978****Less custodian fees waived (2,303)****Net expenses 39,675**** Net investment loss(17,391)**Net realized loss on investments**  ****Proceeds from sales 479,632****Less cost of securities sold based on identified cost 490,309**** Realized net loss(10,677)**Unrealized gain on investments**   End of year 800,316 Beginning of year 1,172,350 Decrease in unrealized gain for the year (372,034)  Net realized and unrealized loss (382,711)**Net decrease in net assets resulting fromoperations************$(400,102)****STATEMENT      OF CHANGES IN NET ASSETS** 
********  **Year ended****Year ended**  **Nov. 30, 2002****Nov. 30, 2001****INCREASE (DECREASE) IN NET ASSETS** ***From Operations*** ****Net investment loss$(17,391)$(6,671)****Net realized loss on investments(10,677)(49,719)****Net decrease in unealized appreciation(372,034)(304,455)****Net decrease in net assets (400,102)(360,845)**** ***Dividends to shareowners from*** ****Net investment income--**** ***From fund share transactions*** ****Proceeds from sales of shares366,963603,793****Value of shares issued in reinvestment of dividends--**** 366,963603,793****Cost of shares redeemed(385,297)(313,737)****Net increase (decrease) in net assets (18,334)290,056**Total increase (decrease) in net assets** **$(418,436)****$(70,789)****** **NET ASSETS** ****Beginning of year3,791,5133,862,302****End of year$3,373,077$3,791,513**** **Shares of the fund sold and redeemed** ****Number of shares sold32,58550,805****Number of shares issued in reinvestment of dividends--**** 32,58550,805****Number of shares redeemed(34,371)(25,630)**Net increase (decrease) in number of shares outstanding** **(1,786)****25,175**
*(The accompanying notes are an integral part of these financialstatements)*
*November 30, 2002      Annual Report* *17***DISCUSSION      OF SEXTANT GROWTH FUND PERFORMANCE**
(unaudited)
**FISCAL YEAR 2002**  For the fiscal year ending November 30, 2002, the Sextant Growth Fund fell-10.5%.  While any decline is unfortunate, this result again was significantly better  than the market averages as well as most growth funds. The NASDAQ Composite  Index declined -22.2%, and the broader S&P 500 Index lost -16.5%. For this  latest fiscal year, the Fund ranked in top 13% of the 718 funds in itsMorningstar’s  peer Mid-cap Growth category. For the last five years, the Fund has provided  a 4.59% average annualized total return and ranks in the top 20% of 334 funds  in its Morningstar peer category. At November 30, 2002, the Fund heldMorningstar’s  “4-star” rating (judged against 499 Mid-cap Growth funds).   The volatility, risks and returns of the stock market continue. The weakperformance  of most market segments in 2000, 2001 and again in 2002 mean that investorexpectations  have become very reasonable, removing an impediment to future marketreturns.

**FACTORS AFFECTING PAST  PERFORMANCE**  The economy in 2002 limped along, while the media and politicians focused on  corporate accounting scandals. Time magazine summed up by selecting threewhistle-blowers  as its “man of the the year”. New laws aimed at stopping terrorists  and corporate malfeasance added to everyone’s hassles. Travel-relatedbusinesses  took heavy hits.  The Fund seeks long-term growth through investment in common stocks of U.S.  companies. It generally follows a value investment approach, favoringcompanies  with good fundamentals and relatively low price/earnings ratios. This year's  market decline accelerated that of the last two years. Losses intechnology-related  businesses spread to utilities, finance and transportation. Our technologystocks  suffered, but our mid-sized and smaller companies improved the overall result.  

**LOOKING FORWARD**  For the fiscal year ending November 30, 2002, the Sextant Growth Fund fell-10.5%.  While any decline is unfortunate, this result again was significantly better  than the market averages as well as most growth funds. The NASDAQ Composite  Index declined -22.2%, and the broader S&P 500 Index lost -16.5%. For this  latest fiscal year, the Fund ranked in top 13% of the 718 funds in itsMorningstar’s  peer Mid-cap Growth category. For the last five years, the Fund has provided  a 4.59% average annualized total return and ranks in the top 20% of 334 funds  in its Morningstar peer category. At November 30, 2002, the Fund heldMorningstar’s  “4-star” rating (judged against 499 Mid-cap Growth funds).   The volatility, risks and returns of the stock market continue. The weakperformance  of most market segments in 2000, 2001 and again in 2002 mean that investorexpectations  have become very reasonable, removing an impediment to future marketreturns.

**MANAGEMENT FEECALCULATIONS**  The Sextant Growth Fund calculates part of its management fee based on acomparison  of the Fund’s return to the average return in Morningstar's“Domestic  Growth” category. At November 30, 2002, the one-year return for thiscategory  average was -15.32%. Because the Fund's 12-month return outperformed thisaverage  by more than 4% at November 30, 2002, the adviser earned the maximum bonusperformance  fee for the month of December 2002. 
**18** *November 30,        2002 Annual Report*
Largely because of the performance bonus, the Fund's totalexpense  ratio increased to 1.11% from 0.78% the prior year. Like all mutual funds,Sextant  Growth Fund’s annual performance results are quoted after deduction of  operating expenses.

**COMPARISON TOINDEX**  The line graph compares Sextant Growth Fund's performance to that of abroad-based  stock market index, the Standard & Poor's 500 Index. Comparison of anymutual  fund to a market index must be made bearing in mind that the index isunmanaged,  and expense-free. Conversely, the fund will (1) be actively managed, (2) have  an objective other than mirroring the index, such as limiting risk, (3) bear  transaction and other costs, (4) stand ready to buy and sell its securities  to shareholders on a daily basis, and (5) provide a wide range of services.  The graph below compares $10,000 invested in the Fund at November 30, 1992(ten  years ago), compared to a similar amount invested in Standard & Poor's 500  Index. The graph shows that the investment in the Fund would have risen to$22,845  and $26,277 in the Index. The 1995 changes in this Fund’s investmentobjectives  and policies limit the usefulness of this comparison. The returns shown do not  reflect the deduction of income taxes that an investor could pay on incomereceived  or the sale of profitable investments. 

 

**Sextant Growth Fund vs. S&P 500 Index(unaudited)**

*(graph omitted)*

 
**November      30, 2002 Annual Report** *19*******INVESTMENTS** 
**SEXTANTINTERNATIONAL        FUND**(Graphic        Omitted)***Issue******Number of Shares******Cost******Market Value******Country**********As of November 30, 2002****Common Stocks (81.2%)********************************* ***Aircraft (2.2%)********* Embraer Aircraft ADR1,713$38,169$25,044Brazil     ***Banking and Financial (10.8%)***    Aegon NV2,07519,73633,117NetherlandsAXA ADS1,00031,16515,830FranceBanco Bilbao Vizcaya ADS1,8007,70218,468SpainING Groep ADS1,40036,13426,334NetherlandsToronto-Dominion Bank1,40018,15930,086Canada *SUB-TOTAL*112,896123,835 ***Building Materials (4.2%)***    CRH plc ADR2,00023,07528,620IrelandHanson plc ADR80024,57420,152UK *SUB-TOTAL*47,64948,772 ***Computers (11.4%)***    Business Objects ADS*6,00019,570119,940FranceDassault Systems ADR40013,87511,480France *SUB-TOTAL*33,445131,420 ***Consumer Products (4.4%)***    Coca-Cola Femsa ADS1,5009,75033,135MexicoGucci Group NV20010,92518,020Italy *SUB-TOTAL*20,67551,155 ***Electronics (2.3%)***    Epcos AG ADS*50034,2068,650GermanySony ADR40032,23617,740Japan *SUB-TOTAL*66,44226,390 ***Hotels (1.7%)***    Fairmont Hotels & Resorts80017,14619,680Canada***Medical-Drugs (3.8%)***    Aventis ADS50815,85928,021FranceGlaxo Wellcome plc ADR4009,80015,200UK *SUB-TOTAL*25,65943,221 ***Metals & Mining (5.3%)***    Potash Corp. of Saskatchewan30021,16419,980CanadaRio Tinto plc ADS50031,17540,715UK *SUB-TOTAL*67,50972,265 ***Oil & Gas Production (5.1%)***    Petroleum Geo-Services ADS*1,00010,979410NorwayRepsol-YPF ADR2,00043,59225,040SpainTotal Fina Elf ADR50021,86433,375France *SUB-TOTAL*76,43558,825 **20** **November        30, 2002 Annual Report******(Graphic      Omitted)**SEXTANT      INTERNATIONAL FUND** 
**INVESTMENTS*****Issue******Number of Shares******Cost******Market Value******Country***     ***Paper Products (5.1%)***    Metso ADS*2,10022,80221,630FinlandUPM-Kymmene Oyj ADS1,00034,39936,500Finland *SUB-TOTAL*57,20158,130 ***Photographic Equipment (4.5%)***    Canon, Inc. ADR1,00023,42638,450JapanFuji Photo Film ADR40010,05012,996Japan *SUB-TOTAL*33,47651,446 **Real Estate (2.6%)**    Intrawest 2,40041,34229,976Canada***Telecommunications (8.3%)***    America Movil ADR2,00029,72530,300MexicoBCE90015,83016,488CanadaBritish Sky Broadcasting ADS*30011,06318,600UKPT Indosat ADR1,00020,9529,120IndonesiaTele Norte Leste Participacoes ADS3356,9332,456BrazilTelefonica ADS*56412,05817,044SpainTelesp Celular Participacoes ADS50024,8951,370Brazil *SUB-TOTAL*121,45695,378 ***Transportation (3.8%)***    Canadian Pacific Railway Ltd.6007,98512,210CanadaDesc SA ADR2,70042,98118,360MexicoLan Chile ADS2,50018,84513,475Chile *SUB-TOTAL*69,81144,045 ***Utilities-Electric (5.5%)***    Enel ADS80035,37220,160ItalyEnersis ADS*1,1034,79815,056ChileFording1,00015,17020,600CanadaKorea Electric Power ADS2,00031,96120,140Korea *SUB-TOTAL*92,00957,940 ***Utilities-Gas (.2%)***    Transport de Gas del Sur ADR*1,50018,8072,370Argentina     ***Total Investments (81.2%)*** **$940,127****934,180** Other Assets (net of liabilities) (18.8%)  216,189 ***Total Net Assets (100%)***  **$1,150,369**      ** Non-income producing*    

 
**November      30, 2002 Annual Report** *21***FINANCIAL HIGHLIGHTS** **SEXTANTINTERNATIONAL          FUND**(graphic          omitted)Selected data per share of capital stock outstanding            throughout each year              **For Year Ended November 30,**  **2002****2001****2000****1999****1998****Net asset value at beginning of year** **$7.24****$8.52****$8.32****$6.81****$6.61** Income from investment operations      Net investment income 0.02 0.04 0.43 0.13  0.04  Net gains or losses on securities (both realized and            unrealized) (1.16) (1.30) 0.20 1.57  0.20 Total from investment operations  (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 year********$6.07****$7.24****$8.52****$8.32****$6.81****Total return********(15.80)%****(14.80)%****7.62%****24.90%****3.57%**Ratios/supplemental data      Net assets ($000), end of period $1,150$1,445$1,736 $1,162 $881 Ratio of expenses to average net assets 1.17%1.17%1.20%0.72%1.16%Ratio of net investment income to average netassets 0.20%0.34%4.74%1.74%0.54%**Portfolio turnover rate********4%****6%****11%****17%****18%**       
**STATEMENT OF              ASSETS AND LIABILITIES******     *As of November 30, 2002*         **Assets**    ****Investments (cost $940,127) $934,180****Cash 219,967****Dividends receivable 247**** Total Assets1,154,394****  **Liabilities**  ****Other Liabilities 4,025**** Total Liabilities4,025****  **Net Assets**  **1,150,369******  ******Fund shares outstanding**  189,669****  **Analysis of Net Assets**  ****Paid in Capital (unlimited shares authorized, without            par value) 1,301,449****Accumlated net realized loss  (145,133)****Unrealized net appreciation on investments  (5,947)**** Net Assets applicable to Fund sharesoutstanding$1,150,369****  **Net Asset Value, Offering and Redemption price per            share** **$6.07**
*(The accompanying notes are anintegral        part of these financial statements)*
**22** **November              30, 2002 Annual Report**********(graphic            omitted)******SEXTANT            INTERNATIONAL FUND** 
**STATEMENT              OF OPERATIONS******  *For the year ended November 30, 2002*     **Investment income**    ****Dividend income (net foreign taxes of $3,180) $17,308**** Gross investment income17,308****  **Expenses**  ****Investment adviser and administration fee 9,444****Custodian fees 2,335****Filing and registration fees 2,166****Professional fees 2,011 Other expenses 1,080****Printing and postage 675****Total gross expenses 17,074****Less custodian fees waived (2,335)****Net expenses 14,739**** Net investment income2,569****  **Net realized loss on investments**  ****Proceeds from sales 37,150****Less cost of securities sold (based on identifiedcost) 107,856**** Realized net loss(70,706)****  **Unrealized loss on investments**   End of year (5,947) Beginning of year 135,270 Decrease in unrealized gain for theyear (141,217)  Net realized and unrealized loss (211,923)   **Net decrease in net assets resulting fromoperations************$(209,354)**********STATEMENT OF CHANGES IN NET            ASSETS** 
********  **Year ended****Year ended**  **Nov. 30, 2001****Nov. 30, 2001****INCREASE (DECREASE) IN NET ASSETS** ***From Operations*** ****Net investment income $2,569$5,248****Net realized loss on investments(70,706)(72,856)****Net decrease in unealized appreciation(141,217)(189,831)****Net decrease in net assets (209,354)(257,439)**** ***Dividends to shareowners from*** ****Net investment income(4,909)(3,779)**** ***From fund share transactions*** ****Proceeds from sales of shares58,704120,139****Value of shares issued in reinvestment of dividends4,8973,752**** 63,601123,891****Cost of shares redeemed(143,789)(154,296)****Net decrease in net assets from share transactions(80,188)(30,405)**Total decrease in net assets** **$(294,451)****$(291,623)****** **NET ASSETS** ****Beginning of year1,444,8201,736,443****End of year$1,150,369$1,444,820**** **Shares of the fund sold and redeemed** ****Number of shares sold9,01914,929****Number of shares issued in reinvestment of dividends807518**** 9,82615,447****Number of shares redeemed(19,618)(19,782)**Net decrease in number of shares outstanding** **(9,792)****(4,335)**
*(The accompanying notes are an integral part ofthese          financial statements)*
***November              30, 2002 AnnualReport*** **23****DISCUSSION              OF SEXTANT INTERNATIONAL FUND PERFORMANCE**
                (unaudited) 
**FISCAL YEAR2002**          For the fiscal year ended November 30, 2002, the Sextant International          Fund fell -15.80%. While any decline is unfortunate, this result again          was better than many domestic market averages. The comparable AMEXInternational          Index declined -15.2%. For this latest fiscal year, the Fund ranked          in the 79th percentile of the 868 funds in Morningstar’s peerForeign          Stock category. For the last five years, the Fund has provided an-0.18%          annualized total return. At November 30, 2002, the Fund heldMorningstar’s          “3-star” rating (judged against 646 Foreign Stock funds).          

**FACTORSAFFECTING          PAST PERFORMANCE**          The economy in 2002 limped along, while the media and politiciansfocused          on corporate accounting scandals. New laws aimed at stoppingterrorists          and corporate malfeasance added to everyone’s hassles. Foreign          investors worried about having their U.S. assets frozen withdrew cash          from domestic markets, and the U.S. dollar weakened markedly.          Investing in foreign securities includes risks not present in domestic          securities. Unlike most years, foreign stocks were generally lessvolatile          than domestic issues. Our portfolio was more heavily invested inEurope          and Canada than Asia, which helped results. Commodity prices began to          turn around, but their low levels brought little relief to ourcyclical          and resource-based issues. Financials suffered in light of hugeinsurance          claims, but higher premiums should bring recovery.

**LOOKINGFORWARD**          The Sextant International Fund is broadly invested in growingcompanies          headquartered outside the United States. Our focus on value investing          continued to serve us in 2002, when technology and other“growth”          stocks tumbled.           Stocks ultimately reflect their underlying business values. Aftertheir          weak performances for three years, we feel many stocks are quiteattractively          priced. Growth of the U.S. economy is expected at 3% in 2003, as low          interest rates boost consumer confidence, spending and investment.Foreign          economies normally recover as the US market buys more foreign goods          and services. We expect that our portfolio securities will continue          to show growth and the Fund will improve its performance.

****
*24* *November              30, 2002 Annual Report*
**MANAGEMENT FEE          CALCULATIONS**The Sextant International Fund calculates part of itsmanagement          fee based on a comparison of the Fund’s return to the averagereturn          of the Morningstar fund category “Foreign Stock”. AtNovember          30, 2002, the one-year return for this category average was -12.31%.          Because the Fund's 12-month return underperformed this average by more          than 2% at November 30, 2002, the adviser incuured at 0.20%annual-rate          penalty performance fee for the month of December 2002. The Fund'sassets          were lower during the year, and the total expense ratio increasedslightly          to 1.20% from 1.17% the prior year. Expense ratio stayed the same from          2001 to 2002.

**COMPARISON TO          INDEX**          Comparison of any fund to an index must be made bearing in mind that          the Index is unmanaged, and expense-free. The graph below compares$10,000          invested in the Fund at its inception, compared to a similar amount          invested in the AMEX International Index. This capitalization-weighted          index averages 50 American Depository Receipts (ADRs) of largeworldwide          companies, and reflects the types of securities in which SextantInternational          Fund invests. The graph shows that a $10,000 investment made onSeptember          1995 would have risen to $13,376 in the Fund and $10,404 in the Index.          The returns shown do not reflect the deduction of income taxes that          an investor could pay on income received or the sale of profitableinvestments.          

 

**Sextant International Fund vs. AMEX International Index(unaudited)**

*(graph omitted)*

 
*November 30,              2002 Annual Report* *25****NOTES                TO FINANCIAL STATEMENTS***
**Note 1 -*Organization***                Saturna Investment 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 seriesinvestment                company under the Investment Company Act of 1940, as amended.                Five portfolio series have been created to date: SextantShort-Term                Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund, and                Sextant International Fund (the "Funds"), and Idaho                Tax-Exempt Fund, distributed through a separate prospectus and                the results of which are contained in a separate report.              

**Note 2 -*Significant                Accounting Policies*****The following is a summary of the significantaccounting                policies followed by the Funds.              

***Investments:***Securities traded on a national exchange or the national                over-the-counter market system are valued at the last sale price                or, in the absence of any sale on that date, the closing bidprice.                Other securities traded in the over-the-counter market arevalued                at the last bid price. Fixed-income securities for which there                are no publicly available market quotations are valued using a                matrix based on maturity, quality, yield and similar factors,                which are compared periodically to multiple dealer bids andadjusted                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 arerecorded                on trade date. Realized gains and losses are recorded on theidentified                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. Marketdiscounts                are recorded as realized gains upon disposition. Cash dividends                from equity securities are recorded as income on the ex-dividend                date. 

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

***Income taxes:***The Funds have elected to be taxed as regulatedinvestment                companies under the Internal Revenue Code and distributesubstantially                all of their taxable net income and realized net gains oninvestments.                Thus, no provision for Federal income taxes is required.            
               

***Dividends and distributions toshareowners:***Dividends and distributions to shareowners are recorded                on the ex-dividend date. For the Sextant Short-Term Bond Fund                and Sextant Bond Income Fund, dividends are paid daily anddistributed                on the last business day of each month. For the Sextant Growth                Fund and Sextant International Fund, dividends are payable at                the end of each November. Shareowners electing to reinvestdividends                and distributions purchase additional shares at the net asset                value on the payable date.              
***Use of Estimates:***The preparation of financial statements in conformity                with accounting principles generally accepted in the UnitedStates                of America requires management to make estimates and assumptions                that affect the reported amounts of assets and liabilities at                the date of the financial statements. Actual results coulddiffer                from those estimates.              
**Note 3 -*Transactions                with Affiliated Persons*****Under a contract approved by shareowners on September                28, 1995, Saturna Capital Corporation provides investmentadvisory                services and certain other administrative and distributionservices                to conduct Trust business. Each of the Funds pays the Adviser                a base Investment Advisory and Administrative Services 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 specified                index. No performance adjustment is applicable during the first                year any Agreement is in place. The Adviser has voluntarilyundertaken                to limit expenses of Sextant Bond Income Fund and SextantShort-Term                Bond Fund to 0.60% through March 31, 2003 and waives itsinvestment                advisory and administrative fee as to either Fund completely so                long as assets of that Fund are less than $2 million. 
                For the year ended November 30, 2002, Sextant Bond Income Fund                and Sextant Growth Fund incurred advisory expenses of $11,975                and $28,460, respectively. Sextant International Fund incurred                advisory expenses of $8,807 and Sextant Short-Term Bond Fundincurred                advisory expenses of $13,566.              
In accordance with the expense waiver noted above,                for the year ended November 30, 2002, Saturna Capital waived$2,517                of the Sextant Short-Term Bond Fund advisory fee and $6,808 of                that of Sextant Bond Income Fund.              
In accordance with the Funds' custodian agreements                with National City Bank, for the year ended November 30, 2002,                custodian fees for Bond Income, Short-Term Bond, Growth, andInternational,                were $789, $2,065, $2,303, and $2,335, respectively. Thecustodian                waived its fees for earnings credits.              
               
             *26* *November                30, 2001 Annual Report*
         
               
One trustee, who also serves as the president of                the Trust, is a director and president of the Adviser. The four                unaffiliated trustees receive $100 per Board or committeemeeting                attended. On November 30, 2002, the turstees, officers and their                immediate families as a group owned 19.5%, 30.2%, 13.7% and34.5%                of the outstanding shares of Bond Income, Short-Term Bond,Growth                and International, respectively.              
The Trust acts as a distributor of its own shares,                except in those states in which Saturna Brokerage Services, Inc.                (a subsidiary of Saturna Capital Corporation) is itselfregistered                as a broker-dealer and acts as distributor without compensation.              
Saturna Brokerage Services is the primarystockbroker                used to effect portfolio transactions for Sextant Growth Fund                and Sextant International Fund, and was paid $2,469 and $378,                respectively in commissions at discount rates during the year                ended November 30, 2002.              
**Note 4 -*Federal Income                Taxes*****At November 30, 2002, Bond Income had capital loss                carryforwards of $48,951, of which $15,110 expires in 2003,$11,717                expires in 2005 and $5,730 expires in 2007, $2,141 expires in                2009 and $14,253 expires in 2010; Short-Term Bond had capital                loss carryforwards of $35,720 of which $5,558 expires in 2004,                $1,405 expires in 2005, $4,467 expires in 2007, $9,191 expires                in 2008, and $15,099 expires in 2009; Growth Fund had capital                loss carryforwards of $60,396 of which $49,718 expires in 2009                and $10,677 expires in 2010; and International had capital loss                carryforwards of $145,133, of which $1,570 expires in 2008,$72,857                expires in 2009, and $70,706 expires in 2010, subject toregulation.                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, 2002, the net unrealized gain (loss)                on investments for Bond Income, Short-Term Bond, Growth andInternational                were $123,383, $63,527, $800,316, and $(5,947), which consists                of unrealized gains of $125,085, $71,409, $1,120,510, and$262,582,                and unrealized losses of $1,702, $7,882, $320,194, and $268,529,                respectively.              
During the year ended November 30, 2002, BondIncome                purchased $547,480 of securities and sold $549,603 ofsecurities.                Comparable figures for Short-Term Bond are $583,881 purchased                $618,782 sold; for Growth $582,426 and $479,632; and forInternational,                $65,197 and $37,150.              
               
 

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**PRIVACY STATEMENT (unaudited)**

*At Saturna Capital, we understand theimportance                  of maintaining the privacy of your financial information. To                  that end, we want to insure that we protect theconfidentiality                  of any personal information you share with us.                  We collect personal information about you from information we                  receive from you on applications and other forms and fromtransactions                  or trades placed with us. Please be assured that except toadminister                  a transaction with an affiliated third party upon yourrequest,                  we do not disclose any personal information about ourcustomers,                  or our former customers, to anyone, except as may be required                  by law. We maintain our own technology resources to minimize                  the use of outside service providers.                  Additionally, Saturna Capital restricts access to personalinformation                  about you to those employees who need to know that information                  to provide products or services to you. We maintain physical,                  electronic, and procedural safeguards that comply with federal                  standards to guard your personal information. If you havefurther                  questions or concerns about the security or privacy of theinformation                  we receive from you, please call us at 1-888/732-6262.*

 

 

 

 

 

 

 

 

 

 

 
*November 30,              2002 Annual Report* *27*
         
**Web: http://www.saturna.com                  E-mail: sextant@saturna.com**

 

 

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SaturnaCapitalMutual Funds

 

1300 N. State Street                    Bellingham WA 98225-4370 

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.

 

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 SEXTANT                          Mutual Funds 
 

 

**SHORT-TERM                          BOND**

**BONDINCOME**

**GROWTH**

**INTERNATIONAL******

 

 

**ANNUAL                          REPORT****November 30, 2002**