IDAHO  TAX-EXEMPT  FUND
MAY  31,  1997  REPORT
MORNINGSTAR  MUTUAL  FUNDS  CONTINUES  TO  AWARD ITS TOP "FIVE-STAR" RATING TO
==============================================================================
IDAHO  TAX-EXEMPT FUND AS OF MAY 31, 1997.  THE MORNINGSTAR RATING IS A WIDELY
==============================================================================
RESPECTED  MEASURE  OF  RISK-ADJUSTED  PERFORMANCE.*   THE FUND'S MANAGERS ARE
==============================================================================
PROUD  THIS  ACCOMPLISHMENT  AND  WORK  HARD  TO  CONTINUE  EXCELLENT RESULTS.
==============================================================================

Fellow  Shareowners:


For the twelve month period ending 5/31/97, our Idaho Tax-Exempt Fund provided
shareholders  with  a total return of 6.53%.  The current 30-day yield on your
Fund  is 4.9%, tax-free.  This is the equivalent of 8.83% of taxable income to
top-bracket  Idaho  taxpayers.

The  last  six  months  have  been  an unusual experience.  Despite the lowest
unemployment  rates  in  twenty  years  and  strong economic growth, inflation
continues to subside.  Last March, the Federal Reserve Bank of New York raised
the  Federal  Funds rate and yet interest rates across the yield curve are now
lower.    The  bond market is gaining confidence in the notion that continuous
economic  growth  does  not  necessarily  lead  to  rising  inflation.

For  the  next twelve months, we expect the "Goldilocks" economy will continue
to  be  "not too hot and not too cold."  Interest rates will remain relatively
stable.    This  means  less  inherent price risk for bonds and solid reliable
returns  for  bond holders.  It is worth remembering that there are times when
the return from bonds can exceed the return from the stock market.  Should the
economy  or the stock market falter, the stable prices and income advantage of
bonds  will  look  very  appealing.

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

     NICHOLAS  KAISER,          PHELPS  MCILVAINE,
     PRESIDENT          VICE    PRESIDENT,  PORTFOLIO  MANAGER
June  19,  1997
__________________
*Morningstar's  proprietary  ratings  reflect  historical  risk-adjusted
performance.  The ratings are subject to change each month, and are calculated
from  a  fund's  3  and  5-year  average  annual  returns  with  sales  charge
adjustments  (if  any) and a risk factor that reflects performance relative to
three  month Treasury bill returns. Ten per cent of the funds in a Morningstar
investment  category  receive  five  stars.  From time to time the adviser has
waived  all  or  a  portion  of fees or expenses, resulting in higher returns.
Naturally,  past  performance  may  not  indicate  future  results.
IDAHO  TAX-EXEMPT  FUND
MAY  31,  1997  SEMI-ANNUAL  REPORT
INVESTMENTS
MAY  31,  1997
<TABLE>

<CAPTION>





RATING*                                    ISSUER                  COUPON/MATURITY     FACE AMOUNT   MARKET VALUE
----------------------------  ---------------------------------  --------------------  ------------  -------------
<S>                           <C>                                <C>                   <C>           <C>


Airport (2.2%)                                                -
AAA                           Boise City Idaho Airport
-                             Revenue COP                               5.4% 8/1/2011  $    115,000  $     113,792

Electric Power (3.4%)-
AAA                           Idaho Falls
-                             Electric Revenue                     6.75% due 4/1/2019       160,000        170,776

General Obligations (32.9)%
AA                            Ada and Canyon Counties
-                             Joint School Dist #2 Meridian        5.5% due 7/30/2000       150,000        150,301
A-                            Bannock County Jail Bond             6.00% due 9/1/2012       100,000        101,636
AAA                           Boise City ID UTGO ISD              5.50% due 7/30/2011        95,000         95,734
AA-                                                           "   5.50% due 7/30/2016       150,000        146,187
AAA                           Canyon County ISD #132              5.40% due 7/30/2011       100,000         99,910
AAA                           Canyon County ID. SCD #132          5.40% due 7/30/2012       100,000         99,360
A                             Canyon County SD#135 Notus           5.90% due 8/1/2005        50,000         51,012
-                                                             "    6.00% due 8/1/2006        50,000         51,160
-                                                             "    6.00% due 8/1/2007        50,000         51,197
AAA                           Cassia, Twin Falls & Oneida GO         5.375% 8/15/2015        75,000         74,260
AAA                           Gooding County (Wendell)
-                             School Dist. #232                    6.00% due 8/1/2008        55,000         56,528
AAA                           Kootenai County
-                             School District #273                 6.00% due 8/1/2012       100,000        102,783
AAA                           Madison County
-                             School District  #321                5.60% due 2/1/2010       150,000        152,316
AA                            Payette County                      6.50% due 7/31/2008        80,000         84,802
AA                            School District #372                6.75% due 7/31/2009       155,000        165,894
-                                                             "   6.75% due 7/31/2010       100,000        106,505
AAA                           Teton County ID UTGO                5.50% due 8/01/2012        75,000         76,016
                                                                                       ------------  -------------
-                             SUB-TOTAL                                             -     1,635,000      1,665,601

Housing (9.0%)
AA                            Idaho Housing Authority
-                             Single Fam Mortgage, B-1             6.85% due 7/1/2012       110,000        111,691
AA                            Idaho Housing Authority
-                             Refunding Ser A                      6.15% due 7/1/2024       150,000        151,466
AA                            Idaho Housing Authority
-                             Single Fam Mort Mezz-E-1             6.60% due 7/1/2011       110,000        113,413
AA                            Idaho Housing Authority
-                             Single Fam Mort Rev Ser B1          8.125% due 7/1/2019         5,000          5,094
-                                                             "    8.00% due 1/1/2020        25,000         25,566
AA                            Idaho Housing Authority
  Single Fam Mort SR Ser C1                  7.70% due 7/1/2017                50,000        50,540
                                                                 --------------------  ------------               
-                             SUB-TOTAL                                             -       450,000        457,770

Irrigation (4.1%)
AA                            Boise Kuna Irr. Dist.                6.00% due 7/1/2008       200,000        208,040

Medical/Hospitals (4.5%)

A                             Idaho Health Facility               6.25% due 12/1/2012       175,000        182,446
AA                            St. Alphonsus Medical Center        6.25% due 12/1/2022        45,000         46,112
                                                                                       ------------  -------------
-                             SUB-TOTAL                                             -       220,000        228,558

Real Estate (6.5%)
A                             Idaho Falls Redevel. Agency Rev.     8.05% due10/1/2006       100,000        111,608
-                                                             "  8.125% due 10/1/2008       100,000        111,930
AAA                           Idaho St Bldg Authority Ser C        5.70% due 9/1/2007       100,000        104,034
                                                                                       ------------  -------------
-                             SUB-TOTAL                                             -       300,000        327,572
</TABLE>


<PAGE>


May  31,  1997    SEMI-Annual  Report                    IDAHO TAX-EXEMPT FUND
INVESTMENTS,  CONTINUED
<TABLE>

<CAPTION>





RATING*                                   ISSUER                     COUPON/MATURITY    FACE AMOUNT   MARKET VALUE
-----------------------  ----------------------------------------  -------------------  ------------  -------------
<S>                      <C>                                       <C>                  <C>           <C>


Roads (4.1%)
A                        Payette L.I.D.                             7.60% due 5/1/2005        30,000         30,089
A                        Post Falls, Kootenai County               7.00% due 4/15/1998        10,000          9,964
-                        L.I.D. #91-1                              7.20% due 4/15/1999        15,000         14,967
-                                                               "  7.40% due 4/15/2000        15,000         14,961
-                                                               "  7.60% due 4/15/2001        15,000         14,994
-                                                               "  7.75% due 4/15/2002        20,000         19,995
-                                                               "  7.95% due 4/15/2003        20,000         20,024
-                                                               "  7.95% due 4/15/2004        20,000         20,057
-                                                               "  7.95% due 4/15/2005        20,000         20,037
-                                                               "  7.95% due 4/15/2006        20,000         20,035
-                                                               "  7.95% due 4/15/2007        20,000         20,034
                                                                                        ------------  -------------
-                        SUB-TOTAL                                                   -       205,000        205,157

State Education (16.1%)
AAA                      Boise St. Univ.                            6.20% due 4/1/2010       200,000        210,760
AAA                      Fee Revenue                                6.30% due 4/1/2014       100,000        103,780
A-                       Idaho State University
-                        Student Fee Revenue                        6.40% due 4/1/2014       250,000        263,050
AAA                      University of Idaho
-                        Student Fee Revenue                        5.60% due 4/1/2015       185,000        185,286
A-                       University of Idaho
-                        Fee Revenue                                6.85% due 4/1/2016        50,000         53,523
                                                                                        ------------  -------------
-                        SUB-TOTAL                                                   -       785,000        816,399

Sewer (3.5%)
A                        Troy Sewer Revenue                         7.00% due 2/1/1998        10,000         10,032
-                                                               "   7.10% due 2/1/1999        10,000         10,131
-                                                               "   7.20% due 2/1/2000        10,000         10,199
-                                                               "   7.30% due 2/1/2001        10,000         10,330
-                                                               "   7.40% due 2/1/2002        10,000         10,325
-                                                               "   7.50% due 2/1/2003        10,000         10,334
-                                                               "   7.60% due 2/1/2004        10,000         10,311
-                                                               "   7.70% due 2/1/2005        15,000         15,507
-                                                               "   7.80% due 2/1/2006        15,000         15,551
-                                                               "   7.90% due 2/1/2007        15,000         15,565
-                                                               "   8.00% due 2/1/2008        15,000         15,571
-                                                               "   8.00% due 2/1/2009        20,000         20,786
-                                                               "   8.00% due 2/1/2010        20,000         20,801
                                                                                        ------------  -------------
-                        SUB-TOTAL                                                   -       170,000        175,443

Water Supply (11.0%)
A-                       American Falls Res.                        7.25% due 5/1/2004        70,000         74,796
-                        Ref. Series A                             7.625% due 5/1/2021       150,000        161,367
A                        McCall Water Rev., Ser 1994                6.25% due 9/1/2008       200,000        209,032
A                        McCall Water Revenue                      6.375% due 9/1/2014        70,000         73,117
A                        Ucon Water & Sewer Rev. Ref.              7.75% due 12/1/2002        35,000         36,462
                                                                                        ------------  -------------
-                        SUB-TOTAL                                             525,000       554,774
                                                                   -------------------  ------------               

-                        Total Investments (97.3%)                 Cost $4,795,970      $  4,765,000  $   4,923,882
                                                                                        ------------               
-                        Other Assets (net of liabilities) (2.7%)                    -             -        136,249
                                                                                                      -------------
-                        Total Net Assets (100%)                                     -             -  $   5,060,131
                                                                                                      =============
<FN>


These  unaudited  bond  ratings  reflect  the  adviser's  current  rating  of  each  bond,
as  determined  using  Standard  &  Poor's  and  Moody's  ratings.
</FN>
</TABLE>


<PAGE>
IDAHO  TAX-EXEMPT  FUND                    MAY  31,1997  SEMI-ANNUAL  REPORT
FINANCIAL  HIGHLIGHTS
<TABLE>

<CAPTION>


Selected  data  per  share  of  capital  stock  outstanding  througout  the  period.




                                                        Six Months ended    For Year Ended November 30
                                                                           ----------------------------               
        May 31, 1997                                          1996                     1995               1994      1993
-----------------------------------------------------  ------------------  ----------------------------  -------  --------
<S>                                                    <C>                 <C>                           <C>      <C>


Net asset value at beginning of period                 $            5.25   $                      5.28   $ 4.76   $  5.23 
                                                       ------------------  ----------------------------  -------  --------
  Income from Investment Operations
  Net investment income                                             0.13                          0.27     0.26      0.27 
  Net gains or losses on securities
    (both realized and unrealized)                                 (0.07)                        (0.03)    0.52     (0.46)
                                                       ------------------  ----------------------------  -------  --------
  Total From Investment Operations                                  0.06                          0.24     0.78     (0.19)
                                                       ------------------  ----------------------------  -------  --------
  Less Distributions
  Dividends (from net investment income)                           (0.13)                        (0.27)   (0.26)    (0.27)
  Distributions (from capital gains)                                0.00                          0.00     0.00     (0.01)
                                                       ------------------  ----------------------------  -------  --------
Total Distributions                                                (0.13)                        (0.27)   (0.26)    (0.28)
                                                       ------------------  ----------------------------  -------  --------

Net asset value at end  of period                      $            5.18   $                      5.25   $ 5.28   $  4.76 
                                                       ==================  ============================  =======  ========

Total Return                                                        1.21%                         4.66%   16.68%   (3.76)%

Ratios / Supplemental Data
Net assets ($000), end of period                       $           5,060   $                     5,064   $5,220   $ 6,841 
Ratio of expenses to average net assets                             0.40%                         0.79%    0.75%     0.75%
Ratio of net investment income to average net assets                2.54%                         5.10%    5.07%     5.28%
Portfolio turnover rate                                               12%                           10%      28%       36%






        May 31, 1997                                    1992      1991     1990     1989           1988
-----------------------------------------------------  -------  --------  -------  -------        -------   
<S>                                                    <C>      <C>       <C>      <C>      <C>      <C>


Net asset value at beginning of period                 $ 5.16   $  5.10   $ 5.03   $ 5.07   $ 4.98   $ 5.03 
                                                       -------  --------  -------  -------  -------  -------
  Income from Investment Operations
  Net investment income                                  0.25      0.28     0.30     0.33     0.35     0.35 
  Net gains or losses on securities
    (both realized and unrealized)                       0.12      0.09     0.07    (0.04)    0.09    (0.05)
                                                       -------  --------  -------  -------  -------  -------
  Total From Investment Operations                       0.37      0.37     0.37     0.29     0.44     0.30 
                                                       -------  --------  -------  -------  -------  -------
  Less Distributions
  Dividends (from net investment income)                (0.25)    (0.29)   (0.30)   (0.33)   (0.35)   (0.35)
  Distributions (from capital gains)                    (0.05)   (0.025)    0.00     0.00     0.00     0.00 
                                                       -------  --------  -------  -------  -------  -------
Total Distributions                                     (0.30)    (0.31)   (0.30)   (0.33)   (0.35)   (0.35)
                                                       -------  --------  -------  -------  -------  -------

Net asset value at end  of period                      $ 5.23   $  5.16   $ 5.10   $ 5.03   $ 5.07   $ 4.98 
                                                       =======  ========  =======  =======  =======  =======

Total Return                                             7.35%     7.49%    7.63%    5.94%    9.17%    6.45%

Ratios / Supplemental Data
Net assets ($000), end of period                       $7,367   $ 5,808   $3,803   $2,540   $  808   $  335 
Ratio of expenses to average net assets                  0.75%     0.75%    0.75%    0.97%    0.90%    0.28%
Ratio of net investment income to average net assets     4.79%     5.64%    6.08%    6.74%    6.51%    6.58%
Portfolio turnover rate                                    31%       17%      15%      17%      13%     100%

<FN>

  FOR  EACH  OF  THE  ABOVE  YEARS,  ALL OR A PORTION OF THE EXPENSES WERE WAIVED. IF THESE COSTS HAD NOT BEEN WAIVED, THE
RESULTING  INCREASE  TO  EXPENSES  PER SHARE IN EACH OF THE ABOVE PERIODS WOULD BE $.01, $.01, $.016, $.007, $.009, $.008,
$.02,  $.02,  $.05, $.10, $.19, AND $.01 RESPECTIVELY.  THE INCREASE TO THE RATIO OF EXPENSES TO AVERAGE DAILY  NET ASSETS
WOULD  BE  .11%,  .27%,  .26%,  .14%,  .18%,  .17%,    .54%,  1.01%,  1.25%,  2.24%,  AND  .11%,  RESPECTIVELY.
</FN>
</TABLE>


<PAGE>
MAY  31,1997  SEMI-ANNUAL  REPORT        IDAHO  TAX-EXEMPT  FUND
STATEMENT  OF  ASSETS  AND  LIABILITIES

<TABLE>

<CAPTION>

As  of  May  31,  1997



<S>                                                            <C>          <C>


Assets
  Municipal Bond investments (cost $4,795,970)                 $4,923,882 
  Cash                                                             47,906 
  Interest receivable                                              88,305 
  Insurance deposit                                                   800 
                                                               -----------            
    Total Assets                                                        -   $5,060,893
                                                                            ----------
Liabilities
  Payable to affiliate                                                762 
                                                               -----------            
    Total Liabilities                                                   -          762
                                                                            ----------
Net Assets                                                              -   $5,060,131
                                                                            ==========

Fund shares outstanding                                                 -      977,265

Analysis of Net Assets
  Paid in capital (unlimited shares authorized, no par value)   4,973,341 
  Undistributed net investment income (loss)                           84 
  Accumulated net realized gain (loss) on investments             (55,920)
  Unrealized net appreciation on investments                      142,626 
                                                               -----------            
  Net Assets applicable to Fund shares outstanding             $5,060,131 
                                                               ===========            
Net Asset Value per share                                               -   $     5.18
                                                                            ==========
</TABLE>



STATEMENT  OF  OPERATIONS
<TABLE>

<CAPTION>

For  six  months  ended  May  31,  1997



<S>                                                       <C>        <C>


Investment income
  Interest income                                         $151,578 
  Amortization of bond premiums                             (3,756)
  Accretion                                                    512 
                                                          ---------           
    Gross investment income                                      -   $148,334 
Expenses
  Investment adviser and administration fee                 12,424 
  Professional fees                                          6,049 
  Printing and postage                                       2,201 
  Shareowner servicing                                       2,173 
  Filing and registration fees                                 793 
  Custodian Fees                                               751 
  Other expenses                                               745 
                                                          ---------           
  Total gross expenses                                      25,136 
    Less earnings credits                                     (751)
    Less advisory fee waived                                (4,507)
                                                          ---------           
  Net expenses                                                   -     19,878 
                                                                     ---------
    Net investment income                                        -    128,456 
                                                                     ---------
Net realized gain (loss) on investments
  Proceeds from sales                                      572,456 
  Less cost of securities sold based on identified cost    558,868 
                                                          ---------           
    Realized net gain (loss)                                     -     13,588 
                                                          ---------           
Unrealized gain (loss) on investments
  End of period                                            142,626 
  Beginning of period                                      225,804 
                                                          ---------           
  Decrease in unrealized gain for the period                     -    (83,178)
                                                          ---------  ---------
    Net realized and unrealized gain on investments              -    (30,935)
                                                          ---------  ---------
Net increase in net assets resulting from operations             -   $ 58,866 
                                                                     =========
</TABLE>


<PAGE>
IDAHO  TAX-EXEMPT  FUND                MAY  31,  1997  SEMI-ANNUAL  REPORT
STATEMENT  OF  CHANGES  IN  NET  ASSETS

<TABLE>

<CAPTION>





<S>                                                              <C>                <C>


INCREASE (DECREASE) IN NET ASSETS                                Six Months ended   Year ended
                                                                 May 31, 1997       Nov 30, 1996
                                                                 -----------------  -------------
Operations:
  Net investment income                                                   128,456        252,695 
  Net realized (loss) gain on investments                                  13,588         (5,514)
  Net  increase (decrease) in unrealized appreciation                     (83,178)       (25,421)
                                                                 -----------------  -------------
  Net  increase (decrease) in net assets                                   58,866        221,760 
                                                                 -----------------  -------------

Dividends to Shareowners From:
  Net investment income                                                  (128,456)      (252,571)
                                                                 -----------------  -------------
  Capital gains distributions                                                   -              - 
                                                                 -----------------  -------------

Fund Share Transactions:
  Proceeds from sales of shares                                           379,893        837,937 
  Value of shares issued in reinvestment of dividends                      97,198        191,502 
                                                                 -----------------  -------------
                                                                          477,091      1,029,439 
  Cost of shares redeemed                                                (411,604)    (1,154,708)
                                                                 -----------------  -------------
  Net increase (decrease) in net assets from share transactions            65,487       (125,269)
                                                                 -----------------  -------------
Total increase (decrease) in net assets                                    (4,103)      (156,080)

Net Assets
  Beginning of period                                                   5,064,234      5,220,314 
                                                                 -----------------  -------------
  End of period                                                         5,060,131      5,064,234 
                                                                 =================  =============

Shares of the Fund Sold and Redeemed
  Number of shares sold                                                    74,899        162,231 
  Number of shares issued in reinvestment of dividends                     18,756         36,855 
  Number of shares redeemed                                               (81,033)      (223,206)
                                                                 -----------------  -------------
Net Increase (Decrease) in Number of Shares Outstanding                    12,622        (24,120)
                                                                 =================  =============
</TABLE>


<PAGE>

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

NOTE  2-SIGNIFICANT  ACCOUNTING  POLICIES
The following is a summary of the sig-nificant accounting policies followed by
the  Fund.

INVESTMENTS:
Fixed-income  securities  for  which  there  are  no publicly available market
quo-tations  are  valued using matrices  based on maturity, quality, yield and
similar  factors,  which are compared periodically to multiple dealer bids and
ad-justed  by  the  adviser  under  policies  established  by  the  Trustees.

The  cost  of  securities  is  the  same for accounting and Federal income tax
purposes.    Securities  trans-actions  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
con-stant  yield-to-maturity basis from pur-chase date to maturity or call, as
appropriate.

Interest  income  is  increased  by  accretion  only for bonds underwritten as
original  issue  discounts.   Market dis-counts are recorded as realized gains
upon  disposition.

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

INCOME  TAXES:
The  Fund  has elected to be taxed as a regulated investment company under the
Internal  Revenue  Code  and  distribute sub-stantially all of its taxable net
invest-ment  income  and  realized  net gains on in-vest-ments.  Therefore, no
provision  for Federal income taxes is required.  Further, the Fund intends to
meet  IRS requirements for tax-free income divi-dends, and requirements of the
Idaho  Department  of  Revenue for income dividends free of Idaho state income
tax.

DIVIDENDS  AND  DISTRIBUTIONS  TO  SHAREOWNERS:
Dividends  and  distributions  to share-owners are recorded on the ex-dividend
date.    Div-idends are paid daily and distributed on the last business day of
each  month.    Shareowners  electing  to reinvest dividends and distributions
pur-chase  additional  shares  at  the  net  asset  value on the payable date.

NOTE  3-TRANSACTIONS  WITH  AFFILIATED  PERSONS
Under  a contract approved by shareowners on October 12, 1990, Saturna Capital
Corporation  provides  investment  ad-vi-sory  services  and  certain  other
adminis-tra-tive  and  distribution services to conduct  the Fund's busi-ness.
For such services, the Fund pays an annual fee equal to .50% of av-erage daily
net  assets.    For  the  six  months  ended  May 31, 1997, the Fund  incurred
advisory  fee  expenses  of  $12,424.

Saturna Capital has volunteered to reimburse the Fund to the extent that total
expenses  of the Fund,  (excluding interest, brokerage commis-sions and taxes)
exceeds  .80%  through  March 31, 1997.  Accordingly, for the six months ended
May  31,  1997,  Saturna  Capital  waived  $4,507  of  the  advisory  fee.

In accordance with the Fund's agreement with its custodian, National City Bank
of  Indiana, for the six months ended May 31, 1997, custodian fees incurred by
the  Fund,    amounted  to  $751.

One  trustee  is  also  a director and officer of Saturna Capital Corporation.

The  Trust  acts as a distributor of its own shares, except in those states in
which  Investors  National  Corporation  (a  sub-si-diary  of  Saturna Capital
Corporation)  is itself registered as a broker-dealer and acts as dis-tributor
without  compensation.    Saturna  Capital  Corporation  acts  as  shareowner
servicing  (transfer)  agent  for  the  Fund,  for  a monthly fee plus certain
expenses.   For the six months ended May 31, 1997, the Fund paid such a fee of
$2,173.

The unaffiliated trustees receive a fee of $100 per meeting attended each, and
in  the  period  ending  May  31,  1997,  such  fees  totalled  $600.

Note  4-Investments
At May 31, 1997, the net unreal-ized appreciation of investments for the  Fund
of $142,626 com-prised gross unrealized gains of $151,450 and gross unrealized
losses  of    ($8,824).

During  the  six  months  ended  May 31, 1997, the Fund pur-chased $687,720 of
securities  and  sold/matured  $572,456  of  securities.
<PAGE>

IDAHO  TAX-EXEMPT  FUND
A  PORTFOLIO  OF  SATURNA  INVESTMENT  TRUST
(GRAPHIC  OMITTED)
SATURNA
CAPITAL
(GRAPHIC  OMITTED)
MUTUAL  FUNDS
1-800-/SATURNA
(800/728-8762)
(idaho@saturna.com)
SEMI-ANNUAL  REPORT
MAY  31,  1997

This  report  is issued for the information of the shareowners of the Fund. It
is  not  authorized  for  distribution  to  prospective investors unless it is
accompanied  or preceded by an effective prospectus relating to the securities
of  the  Fund.  Idaho Tax-Exempt Fund is a series of Saturna Investment Trust.