SECURITIES AND EXCHANGE COMMISSION  WASHINGTON, DC 20549**FORM N-CSR****S****CERTIFIED SHAREHOLDER REPORT OF REGISTERED  MANAGEMENT INVESTMENT COMPANIES**  Investment Company Act file number: 811-05071 or 33-13247**SATURNA INVESTMENT TRUST**  (Exact Name of Registrant as Specified in Charter)**1300 N. State Street  Bellingham, Washington 98225-4730**  (Address of Principal Executive Offices, including ZIP Code)  Nicholas F. Kaiser  1300 N. State Street  Bellingham, Washington 98225-4730  (Name and Address of Agent for Service)  Registrant’s Telephone Number- (360) 734-9900  Date of fiscal year end: November 30, 2005Date of reporting period: May31, 2005

***May 31, 2005 Semi-Annual Report* *1*
 
**

**Item 1. Reports to Stockholders.**

| Sextant******Mutual Funds**

**SHORT-TERM BOND         BOND INCOME        GROWTH        INTERNATIONAL                SEMI-ANNUAL REPORT         MAY 31, 2005** | (graphic omitted) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|

Fellow Shareowners:  For the six months ended May 31, 2005, stocks advanced and bonds declined, both modestly. Bond investors can look for higher yields but little total return as interest rates climb slowly. Stock investors should see a good second half in 2005, helped by confident consumers, growing employment, an reduced government deficits. But the rising US currency will reduce corporate earnings growth to the high single digits. 

For the last six months, bot the Sextant Growth and Sextant International funds have continued their outstanding performances. The Sextant bond funds provided haven while interest rates increased. Now able to purchase greater yields, we expect to be increasing maturities and quality in these bond funds. Equities should continue to provide the better returns, as their fundamental valuations remain solid. As we have done (accurately) for the past year, we are recommending a balance favoring stocks over bonds.

Prudent investors do well to remember that change is the only real constant. Choppy economic seas will always be soothed by the "invisible hand" of free economic markets. Change is the rationale for our four distinctly different Sextant funds, which allow investors to choose the variable returns of the domestic and international stock markets, long-term bonds, or the safety of short-term bonds.   Our Sextant funds employ a "fulcrum" advisory fee structure that reward or penalizes Saturna Capital for investment results.  Relative performance of the Sextant equity funds over the last 12 months (the fulcurm fee measurement period) was far above our Morningstar mutual fund benchmarks-to the considerable benefit of shareowners as well as Saturna Capital. For the six and twleve months ended May 31, 2005 comparative total returns are: 
Sextant Fund6 Month Total Return12 Month Total Return vs. Morningstar12 Month Total Return Short-Term Bond0.76%1.89%Short-Term Bonds2.41%Bond Income2.57%7.01%Long-Term Bonds9.47%Growth3.88%17.68%Domestic Growth 7.91%International6.92%24.58%Foreign Stock 14.92%
While are funds remain small, growing awareness of the Sextant Funds and their good performance continues to attract investors. The year 2005 has been solid so far and we are looking forward to the second half. Thank you for investing your money with ours. 

**Nicholas Kaiser,*******President*****Phelps McIlvaine,*Vice              President***(Manager, Sextant Growth;        Sextant International)(Manager, Sextant Bond Income;        Sextant Short-Term Bond)
July 15, 2005
*2* **May 31, 2005 Semi-Annual Report****Investments** **Sextant Short Term Bond Fund (Graphic Omited)*********Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value******Percentage**********As of May 31, 2005* ***Banking*** AA+Washington Mutual Financial8.25% due 6/15/2005$75,000$74,8153.0%       ***Building Products*** ALowe's Companies7.50% due 12/15/200570,00070,9642.8%    ***Computer*** A-Hewlett Packard7.15% due 6/15/200570,00069,7952.8%       ***Cosmetics & Toiletries*** AAvon Products6.55% due 8/1/200795,00098,8643.9%    ***Finance & Insurance*** AAllliance Capital Management5.625% due 8/15/200665,00065,9332.6%AAAFederal Home Loan Bank 4.60% due 5/18/2009 120,000120,4874.8%AAAFederal Home Loan Mortgage3.00% due 8/18/2005100,00099,9343.9%AAAFedernal National Mortgage4.00% due 2/23/2007 120,000119,9414.7%A+International Finance AIG 5.75% due 10/15/200695,00096,1333.8% SUB-TOTAL 500,000502,42819.8%    ***Machinery*** A-Rockwell Automation Int'l6.15% due 1/15/200895,00098,5593.9%    ***Medical Drugs*** AAmgen6.50% due 12/1/200790,00094,1503.7%AAAPfizer Inc. 5.625% due 2/1/2006100,000102,6444.1% *SUB-TOTAL* 190,000196,7947.8%    ***Publishing*** A-Tribune Company 6.875% due 11/1/200645,00046,3761.8%       ***Telecommunications*** ASouthwestern Bell Telephone 6.625% due 7/15/200795,00099,9333.9%A-Verizon Wireless 5.375% due 12/15/200682,00082,9393.3% *SUB-TOTAL* 177,000182,8727.2%    ***U.S. Government***    AAAU.S. T-Note 3.25% due 8/15/2008 225,000222,2588.8%AAAU.S. T-Note4.00% due 6/15/2009425,000429,58217.0% *SUB-TOTAL* 650,000651,84025.8%       ***Utilities*** AFlorida Power & Light6.875% due 12/1/200595,00096,0683.8%BBBPSI Energy7.85% due 10/15/200790,00094,3213.7%BBB+Sempra Energy6.95% due 12/1/200592,00093,6243.7%  *SUB-TOTAL*277,000284,01311.2%   **Total Investments****(Cost = $2,287,548)****$2,244,000****$2,277,320****90.0%****Other Assets (net of liabilities)** **252,084****10.0%****Total Net Assets** **$2,529,404****100.0%****Ratings are the lesser of S&P or Moody's (unaudited)*
 
**May 31, 2005 Semi-Annual Report** *3* **FINANCIAL          HIGHLIGHTS** 
**SEXTANT SHORT TERM      BOND FUND (Graphic Omitted)*******Selected data per share of capital stock outstanding  throughout the period:*Period ended May 31, 2005 For the year ended November 30,  **2004****2003****2002****2001****2000****Net asset value at beginning of period** **$4.97****$5.09****$5.07****$5.10****$4.95****$4.92***Income from investment operations*       Net investment income 0.09 0.19 0.23 0.27 0.26 0.27 Net gains or losses on securities (both realized and unrealized) (0.05)(0.12)0.02 (0.02) 0.14 0.03 Total from investment operations 0.04 0.07 0.25 0.25 0.40  0.30 *Less distributions*       Dividends (from net investment income) (0.09) (0.19) (0.23) (0.28) (0.25) (0.27)Total distributions (0.09) (0.19) (0.23) (0.28) (0.25) (0.27)**Net asset value at end of period** **$4.92****$4.97****$5.09****$5.07****$5.10****$4.95****Total Return** **0.76%****1.41%****5.00%****4.90%****8.37%****6.20%**        Ratios / Supplemental Data       Net assets ($000), end of period  $2,529$2,255$2,259$2,177$2,189$2,555 **Ratio of expenses to average net assets**       Before  fee waivers 0.54%1.14%1.17%1.14%0.94%1.02%After  fee waivers 0.30%0.58%0.60%0.93%0.51%0.61%Ratio of net investment income after waivers to average        net assets 1.76%3.80%4.47%5.23%5.45%5.45%        **Portfolio turnover rate********23%****37%****22%****28%****28%****12%**
**STATEMENT OF ASSETS              AND LIABILITIES****SEXTANT SHORT TERM BOND FUND (Graphic Omitted)******
*As of May 31, 2005*    **Assets**   Investments (cost $2,287,548) $2,277,320Cash 206,926Interest receivable 42,755Total Assets $2,527,001**Liabilities** Other Liabilities (2,403)Total Liabilities (2,403)  **Net Assets** $2,529,404  **Fund shares outstanding** 514,206  **Analysis of Net Assets** Paid in Capital (unlimited shares authorized, without par        value) $2,580,117Accumlated net realized loss on investments  (40,485)Unrealized net depreciation on investments (10,228)Net Assets applicable to Fund shares outstanding $2,529,404**Net Asset Value, Offering and Redemption price per share** **$4.92**

*(The accompanying notes are an integral part of these        financial statements)*
**4** ***May 31,2005 Semi-Annual Report*****STATEMENT OF OPERATIONS**   
**SEXTANT SHORT TERM BOND FUND**  (Graphic Omitted)  *For the period ended May 31, 2005***Investment income**   Interest income $62,727Amortization of bond premium (14,953)Accretion 685Other income 125 Gross investment income $48,584  **Expenses** Investment adviser and administration fees 6,968Filing and registration fees 1,574Custodian fees 1,470Legal fees 1,025Meetings 743Insurance 500Audit fees 305Printing and postage 85Total gross expenses 12,670Less adviser fees waived (4,341)Less custodian fees waived (1,245)Net expenses 7,084Net investment income $41,500  **Net realized loss on investments** Proceeds from sales 493,096Less cost of securities sold (based on identified cost) 499,636Realized net loss (6,540)  **Unrealized gain on investments** End of period  (10,228)Beginning of period 5,349Decrease in unrealized gain for the period (15,577)Net realized and unrealized loss (22,117)**Net increase in net assets resulting from operations****$19,383**   ******STATEMENT OF CHANGES IN NET ASSETS** 
**SEXTANT SHORT TERM BOND FUND (Graphic Omitted)** **Period ended****Year ended** **May 31, 2005****Nov. 30, 2004****INCREASE (DECREASE) IN NET ASSETS*****From Operations*** Net investment income$41,500$90,916Net realized loss on investments(6,540)(4,422)Net decrease in unrealized appreciation(15,577)(57,383)Net increase in net assets from operations $19,383$29,111 ***Dividends to shareowners from***Net investment income(41,506)(90,916) ***Fund Share transactions***Proceeds from sales of shares417,644610,686Value of shares issued in reinvestment of dividends41,14190,739 458,785701,425Cost of shares redeemed(162,665)(643,510)Net increase in net assets296,12057,915**Total increase (decrease) in net assets****$273,997****$(3,890)** **NET ASSETS**Beginning of period 2,255,4072,259,297End of period $2,529,404$2,255,407 **Shares of the fund sold and redeemed**Number of shares sold84,721119,937Number of shares issued in reinvestment of dividends8,34618,013 93,067137,950Number of shares redeemed(32,965)(127,472)**Net increase in number of shares outstanding****60,102****10,478**
*(The accompanying notes are an integral part of these        financial statements)*
*May 31, 2005 Semi-Annual            Report* *5*
 
**Expenses (Unaudited)**

**Sextant Short Term Bond Fund (grahic omitted)**
As a Sextant Short-Term Bond Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.**EXAMPLE**        The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].**ACTUAL EXPENSES**        The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**        The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.

Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. 

**SEXTANT SHORT-TERM BOND FUND**
Beginning Account Value        [Friday, May 28, 2004]Ending Account Value         [Tuesday, May 31, 2005]Expenses Paid During Period*Actual        (1.89% return         after expenses)$1,000.00$1,018.90$6.06Hypothetical        (5% return         before expenses)$1,000.00$1,044.00$6.13
****

* Expenses are equal to Sextant Short-Term Bond Fund's annualized expense ratio of 0.60% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,009.45 over the period.
**Portfolio Holdings** 
**SEXTANT SHORT TERM BOND FUND (Graphic Omitted)**Ratings           established By           AdvisorBy Standard & Poor'sBy Moody's           Investor ServicesAAA43.3%39.3%43.3%AA3.0%6.8%6.8%A36.4%32.6%32.6%BBB7.4%7.4%7.4%unrated--4.0%0.0%cash9.9%9.9%9.9%
   
*6* *May 31, 2005 Semi-Annual Report*
  

 

 
**INVESTMENTS** 
****SEXTANT                  BOND INCOME FUND****(Graphic                  Omitted)   *As of May 31, 2005****Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value******Percentage***    ***Automotive*** BBBAuto Zone5.50% due 11/15/2015$95,000$94,1743.0%       ***Banking*** A+Chase Manhattan7.125% due 6/15/200950,00054,6491.8%A+Citicorp7.25% due 10/15/201150,000 57,0321.8%A-Comerica Bank7.125% due 12/1/201350,000 54,4731.7%A+Norwest Financial6.85% due 7/15/200950,000 54,8631.8% *SUB-TOTAL* 200,000 221,0177.1%    ***Building Products*** BBB+Masco Corporation7.125% due 8/15/201360,00068,4402.2%    ***Chemicals*** AAir Products & Chemicals8.75% due 4/15/202150,00065,8942.1%    ***Diversified Financial Services*** AAAGeneral Electric Capital 8.125% due 5/15/201260,00071,7432.3%    ***Electric Utilities*** A-Commonwealth Edison7.50% due 7/1/201350,000 58,8181.9%    ***Electronics*** A-Koninlijke Phillips Electronics 7.25% due 8/15/201350,000 55,6011.8%A-Sempra Energy7.95% due 3/1/201050,00056,4851.8% *SUB-TOTAL* 100,000112,0863.6%    ***Food*** BBB+Conagra7.875% due 9/15/201050,000 57,7011.9%A+Hershy Foods6.95% due 8/15/201250,00057,4251.8%A-HJ Heinz6.00 % due 3/15/201275,00080,8972.6% *SUB-TOTAL* 175,000196,0236.3%    ***Insurance*** A+Allstate7.50% due 6/15/201350,000 58,7441.9%A+Progressive 7.00% due 10/1/201375,00086,4942.7%A+XL Capital6.50% due 1/15/201290,00099,4403.2% *SUB-TOTAL* 215,000244,6787.8%    ***Investment Finance*** ABear Stearns3.5% due 6/27/2008154,000147,3614.7%AA-Morgan Stanley Dean Witter6.75% due 10/15/201350,00055,7941.8%AA+Paine Webber Group7.625% due 2/15/201450,000 59,6551.9% *SUB-TOTAL* 254,000 262,8108.4%       ***Machinery*** A+Caterpillar9.375% due 8/15/201140,00049,2651.6%A+Dover6.25% due 6/1/200870,00073,2692.3% *SUB-TOTAL* 110,000122,5343.9%    ***Medical Supplies*** A+Becton Dickinson7.15% due 10/1/200940,000 44,1281.4%    ***Oil & Gas*** ABaker Hughes6.00% due 2/15/200970,00073,1852.4%A+Texaco Capital8.625% due 6/30/201040,000 47,7661.5% *SUB-TOTAL* 110,000120,9513.9%    ***Real Estate*** BBB+Archstone Smith5.625% due 8/15/201450,000 52,6741.7%       ***Retailing*** ADayton Hudson (Target Stores)10.00% due 1/1/201150,000 60,6541.9%ALowe's Companies8.25% due 6/1/201050,000 58,7291.9%AMay Department Stores8.00% due 7/15/201250,000 58,0101.9%AAWal-Mart Stores7.25% due 6/1/201345,00053,0501.7% *SUB-TOTAL* 195,000 230,4437.4%    ***Telecommunications*** A+GTE6.90% due 11/1/200850,00053,6341.7%    ***Transportation*** ASouthwest Airlines6.50% due 3/1/201275,00080,7002.6%A-US Freightways 8.50% due 4/25/201050,000 57,1321.8% *SUB-TOTAL* 125,000 137,8324.4%    ***US Government*** AAAFederal Farm Credit Bank 5.09% due 2/17/2015 120,000119,6463.8%AAAFederal Home Loan Bank 5.55% due 4/13/2015 100,000101,3823.2%AAAFederal Home Loan Mortgage Corp5.00% due 8/1/2009100,000100,3423.2%AAAFederal National Mortgage 5.00% due 4/10/2015100,00099,8293.2%AAAUS Treasury Note5.50% due 2/15/2008125,000131,0354.2%AAAUS Treasury Note4.00% due 4/15/2010 250,000252,6178.1% *SUB-TOTAL* 795,000804,85125.7%   **Total Investments****(Cost = $2,789,044)****$2,734,000****$2,962,730****94.8%****Other Assets (net of liabilities)** **163,801****5.2%****Total Net Assets** **$3,126,531****100.0%**  *Ratings are the lesser of S&P or Moody's (unaudited)                  *May 31, 2005 Semi-Annual Report* *7*******FINANCIAL              HIGHLIGHTS** 
**SEXTANT BOND                INCOME FUND**(graphic                omitted)*Selected data per share of capital stock outstanding         throughout the period:***For Year Ended November 30,** **Period ended May 31,2005****2004****2003****2002****2001****2000****Net asset value at beginning of period****$5.06****$5.07****$4.97****$4.81****$4.56****$4.59***Income from investment operations*      Net investment income0.11 0.22 0.22 0.26 0.30 0.29 Net gains or losses on securities (both realized and          unrealized)0.02 (0.01) 0.10 0.16 0.25 (0.03)Total from investment operations0.13 0.21 0.32 0.42 0.55 0.26 *Less distributions*      Dividends (from net investment income)(0.11) (0.22) (0.22) (0.26) (0.30) (0.29)Total distributions(0.11) (0.22) (0.22) (0.26) (0.30) (0.29)**Net asset value at end of period****$5.08****$5.06****$5.07****$4.97****$4.81****$4.56** **Total return****2.57%****4.26%****6.52%****9.02%****12.40%****6.05%**       **Ratios/supplemental data**      Net assets ($000), end of period$3,127 $2,643 $2,272 $2,105 $1,965 $1,505 **Ratio of expenses to average net assets**      Before fee waiver0.49%0.89%1.15%1.06%1.06%0.99%After fee waiver0.47%0.87%0.97%0.72%0.34%0.35%Ratio of net investment income after waiver to average          net assets2.19%4.47%4.29%5.40%6.71%6.58%       **Portfolio turnover rate****4%****0%****0%****29%****30%****0%**
**STATEMENT OF                ASSETS & LIABILITIES****Sextant Bond Income Fund**(graphic omitted)*As of May 31, 2005*       **Assets**   Bond investments (cost $2,789,044) $2,962,730Cash 115,229Interest receivable 46,941Insurance reserve premium 401Total Assets $3,125,301**Liabilities** Other Liabilities (1,230)Total Liabilities (1,230)**Net Assets** **$3,126,531**    **Fund shares outstanding** **615,873**    **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without          par value) 2,985,860Accumlated net realized loss on investments  (33,015)Unrealized net appreciation on investments 173,686Net Assets applicable to Fund shares outstanding $3,126,531**Net Asset Value, Offering and Redemption price per            share********$5.08**
*(The accompanying notes are an integral part of these financial      statements)*
*8*  *May 31, 2005 Semi-Annual Report*****STATEMENT OF OPERATIONS** 
****SEXTANT BOND INCOME FUND (graphic omitted)******** *For the semi-annual period ended May 31, 2005***Investment income**   Interest income $77,528Amortization of bond premium (5,701)Accretion 376Other income 43 Gross investment income $72,246    **Expenses** Investment advisory and administration fee 6,005Filing and registration fees 1,799Legal fees 1,686Audit fees 1,540Insurance 741Custodian fees 666Printing and postage 395Trustee fees 290Other expenses 102Total gross expenses 13,224Less: custodian fees waived (445)Net expenses 12,779Net investment income $59,467    **Net realized gain on investments**   Proceeds from sales 106,937Less cost of securities sold (based on identified cost) 106,111Realized net gain  826    **Unrealized gain on investments** End of period 173,686Beginning of period 160,528Increase in unrealized gain for the period (13,158)Net realized and unrealized gain (13,984)**Net increase in net assets resulting from operations************$73,451**
 
**STATEMENT OF            CHANGES IN NET ASSETS** 
****SEXTANT BOND INCOME FUND (graphic omitted)**** **Period ended****Year ended** **May 31, 2005****Nov. 30, 2004****INCREASE IN NET ASSETS**  ***From Operations***  Net investment income$59,467$111,643Net realized gain on investments826-Net increase (decrease) in unealized appreciation13,158(8,589)Net increase in net assets $73,451$103,054 ***Dividends to shareowners from***Net investment income(59,518)(111,643) ***From tund share transactions***Proceeds from sales of shares680,088418,675Value of shares issued in reinvestment of dividends58,584106,570 738,672525,245Cost of shares redeemed(268,674)(146,179)Net increase in net assets 469,998379,066**Total increase in net assets****$483,931****$370,477** **NET ASSETS**Beginning of period2,642,6002,272,123End of period$3,126,531$2,642,600 **Shares of the fund sold and redeemed**Number of shares sold134,40582,699Number of shares issued in reinvestment of dividends11,59420,985 145,999103,684Number of shares redeemed(52,802)(29,190)**Net increase in number of shares outstanding****93,197****74,494**
*(The accompanying notes are an integral part of these financial      statements)*
**May 31, 2005 Semi-Annual Report** *9***Expenses (Unaudited)**
****SEXTANT BOND INCOME FUND (graphic omitted)****
As a Sextant Bond Income Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.**EXAMPLE**      The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday,May 31, 2005].**ACTUAL EXPENSES**        The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**        The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.

Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. 

**SEXTANT BOND INCOME FUND**
Beginning Account Value          [Friday, May 28, 2004]Ending Account Value         [Tuesday, May 31, 2005]Expenses Paid During Period*Actual        (7.01% return         after expenses)$1,000.00$1,070.10$9.73Hypothetical        (5% return         before expenses)$1,000.00$1,040.60$9.59
* Expenses are equal to Sextant Bond Income Fund's annualized        expense ratio of 0.94% (based on the most recent semi-annual period of        December 1, 2004 through May 31, 2005), multiplied by the average account        value of $1,035.05 over the period.
**Portfolio Holdings** 
****SEXTANT BOND INCOME FUND (graphic omitted)****
 
Ratings established By          Advisor By Standar &          Poor's By Moody's          Investor Services AAA28.1%16.7%28.0%AA8.7%6.9%10.5%A39.4%43.9%39.5%BBB18.6%16.0%16.8%unrated--11.3%0.0%cash5.2%5.2%5.2%*10* *May 31, 2005 Semi-Annual Report*
 
**INVESTMENTS** **SEXTANT              GROWTH FUND**(graphic omitted) *As of May 31, 2005****Issue******Number of Shares******Cost******Market Value******Percentage*** ***Banking***Frontier Financial6,000 $90,207 $149,4002.1%Washington Banking Company 2,00029,08028,6000.4%Washington Mutual6,750 44,124  278,7753.9%*SUB-TOTAL*163,411456,7756.4%     ***Computers***3 Com*16,00096,57658,5600.8%Adobe Systems9,600 50,490 317,9524.4%Apple Computer*11,00097,170437,3526.1%Earthlink*12,000101,107126,9601.8%Hewlett-Packard5,500113,000123,8051.7%Intuit*4,000175,198173,0802.4%Oracle* 8,000 28,059102,4001.4%Phoenix Technologies Ltd.*3,062  29,148 24,8320.3%*SUB-TOTAL*690,7481,364,94118.9%     ***Construction***Lowe's Companies4,000135,141228,8403.2%Weyerhaeuser3,000  158,837 192,4502.7%*SUB-TOTAL*293,978421,2905.9%     ***Electronics***Advanced Micro Devices*10,00041,708164,0002.3%Agilent Technologies*6,000 155,834 144,060 2.0%Harman International Industries1,500 114,354 124,2901.7%*SUB-TOTAL*311,896432,3506.0%     ***Food***Performance Food Group*3,00096,91781,1801.1%PepsiCo2,000 102,111 112,6001.6%*SUB-TOTAL*199,028193,7802.7% ***Hotels & Motels***Westcoast Hospitality*12,00075,90482,6801.1% ***Investments***Chubb1,20099,900100,9201.4%Schwab (Charles)20,4159,117231,5063.2%*SUB-TOTAL*109,017332,4264.6%     ***Machinery***Regal-Beloit 4,000 104,006102,8001.4% ***Medical***Affymetrix*4,000109,131213,9603.0%Amgen*2,64034,598165,2112.3%Barr Laboratories*4,500159,489228,2853.2%Bristol-Myers Squibb4,500121,892114,1201.6%Caremark Rx*4,00092,593178,6412.5%Ligand Pharmaceuticals*5,000 56,43029,2000.4%Lilly (Eli)2,000165,241116,6001.6%Pharmaceutical Product Development*7,500 67,174 362,3255.0%*SUB-TOTAL*806,5481,408,34219.6%     ***Metal Ores***Alcoa3,000104,23381,3001.1%Phelps Dodge1,330 76,218 116,2421.6%*SUB-TOTAL*180,451197,5422.7%     ***Oil &Gas***Noble Drilling 3,00054,457169,8602.3% ***Publishing***Wiley (John) & Sons, Class A3,40074,233130,1521.8%     ***Retail***Bed Bath & Beyond*3,000100,051121,9501.7%Build-A-Bear-Workshop*4,000111,000109,6001.5%*SUB-TOTAL***211,051231,5503.2%     ***Telecommunications***Sprint (FON Group)1,30024,11430,7580.4%Trimble Navigation*4,500106,214178,8302.5%*SUB-TOTAL*130,328209,5882.9% ***Utility***FPL Group5,000158,289203,2502.8%IDACorp6,000159,539170,1002.4%Sempra Energy3,000116,394119,0101.6%*SUB-TOTAL*434,222492,3606.8% **Total Investments****$3,839,278****$6,226,436****86.3%****Other Assets (net of liabilities)****989,247****13.7%****Total Net Assets****$7,215,683****100.0%** *Non-income producing     *May 31, 2005 Semi-Annual Report* *11***FINANCIAL HIGHLIGHTS** 
****SEXTANT GROWTH                FUND****(graphic                omitted)Selected data per share of capital stock outstanding throughout the period: **For Year Ended November 30,** **Period ended May 31, 2005****2004****2003****2002****2001****2000****Net asset value at beginning of period****$14.20****$12.91****$10.64****$11.90****$13.16****$12.68***Income from investment operations*      Net investment income(0.03) 0.01 (0.04) (0.05) (0.02) (0.07)Net gains or losses on securities (both realized and unrealized)0.57 1.45 2.31 (1.21) (1.24) 1.36Total from investment operations0.54 1.46 2.27 (1.26) (1.26) 1.29*Less distributions*      Dividends (from net investment income)- (0.01) - - - -Distributions (from capital gains)- (0.16) - - - (0.81)Total distributions- (0.17) - - - (0.81)**Net asset value at end of period****$14.74****$14.20****$12.91****$10.64****$11.90****$13.16****Total Return****3.88%****11.35%****21.31%****(10.51)%****(9.57)%****10.16%**       **Ratios / Supplemental Data**      Net assets ($000), end of period$7,216$5,331$4,732$3,373$3,792$3,862 **Ratio of expenses to average net assets**      Before  fee waiver0.62%0.80%1.20%1.17%0.84%1.11%After  fee waiver0.60%0.78%1.14%1.11%0.78%1.05%Ratio of net investment income after waiver to average net assets(0.20)%0.12%(0.40)%(0.48)%(0.18)%(0.51)%       **Portfolio turnover rate****2%****8%****12%****15%****8%****20%****STATEMENT OF ASSETS & LIABILITIES******SEXTANT GROWTH FUND****(graphic omitted)*As of May 31, 2005*       **Assets** Investments (cost $3,839,278) $6,226,436Cash 992,190Insurance reserve premium 1,214Dividends receivable 1,153Total Assets $7,220,993**Liabilities** Other liabilities 5,310Total Liabilities 5,310**Net Assets** **$7,215,683**    **Fund shares outstanding** 489,421    **Analysis of Net Assets** Paid in Capital (unlimited shares authorized, without par        value) 4,846,862Accumlated net realized loss on investments  (18,337)Unrealized net appreciation on investments 2,387,158Net Assets applicable to Fund shares outstanding $7,215,683**Net Asset Value, Offering and Redemption price per share****$14.74**
*(The accompanying notes are an integral        part of these financial statements)*
*12* *May 31, 2005 Semi-Annual Report*****STATEMENT OF OPERATIONS**** 
****SEXTANT GROWTH FUND**  ****(Graphic Omitted)*******For the semi annual period ended May 31, 2005***Investment income**   Dividend income $23,635Other income 28Gross investment income $23,663    **Expenses** Investment advisory and administration fee 24,219Legal fees 3,034Filing and registration fees 2,708Audit fees 2,257Custodian fees 1,930Insurance 1,757Meetings 574Printing and postage 276Other expenses 202Total gross expenses 36,957Less custodian fees waived (1,453)Net expenses 35,504Net investment income $(11,841)    **Net realized loss on investments** Proceeds from sales 97,530Less cost of securities sold (based on identified cost) 117,044Realized net loss  (19,514)    **Unrealized gain on investments** End of period 2,387,158Beginning of period 2,070,566Increase in unrealized gain for the period 316,592Net realized and unrealized gain 297,078 **Net increase in net assets resulting from operations************$285,237****STATEMENT              OF CHANGES IN NET ASSETS** 
****SEXTANT GROWTH FUND****(graphic omitted)**** **Period ended****Year ended** **May 31, 2005****Nov. 30, 2004****INCREASE IN NET ASSETS*****From Operations***Net investment income (loss)$(11,841)$5,799Net realized gain (loss) on investments(19,514)91,659Net increase  in unealized appreciation316,592454,857Net increase in net assets 285,237552,315*******Dividends to shareowners from***Net investment income-(4,662)Capital gains distributions-(60,280) -(64,902)*******From fund share transactions***Proceeds from sales of shares1,951,5981,129,561Value of shares issued in reinvestment of dividends-64,879 1,951,5981,194,440Cost of shares redeemed(352,167)(1,082,914)Net increase  in net assets 1,599,431111,526**Total increase  in net assets****$1,884,668****$598,939********NET ASSETS**Beginning of period5,331,0154,732,076End of period$7,215,683$5,331,015   **Undistributed net investment income**-1,177******Shares of the fund sold and redeemed**Number of shares sold138,25687,757Number of shares issued in reinvestment of dividends-4,572****138,25692,329Number of shares redeemed(24,365)(83,204)**Net increase  in number of shares outstanding****113,891****9,125**
*(The accompanying notes are an integral        part of these financial statements)*
*May 31, 2005 Semi-Annual Report* *13***Expenses (Unaudited)** 
****SEXTANT GROWTH FUND****(graphic omitted)****
As a Sextant Growth Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.**EXAMPLE**  The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].**ACTUAL EXPENSES**  The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “"Expenses Paid During Year" to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**  The second line provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Funds and other fund. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.

Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. 

**SEXTANT GROWTH FUND**
Beginning Account Value [Friday, May 28, 2004]Ending Account Value           [Tuesday, May 31, 2005]Expenses Paid During Period*Actual          (17.68% return           after expenses)$1,000.00$1,176.80$12.95Hypothetical          (5% return           before expenses)$1,000.00$1,038.10$12.13
* Expenses are equal to Sextant Growth Fund's annualized expense ratio of 1.19% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,088.40 over the period.
**Portfolio Holdings** 
****SEXTANT GROWTH FUND****(graphic omitted)******Industries**Medical19.6%Computers18.9%Cash 13.7%Utilities 6.8%Banking 6.4%Electronics6.0%Construction5.9%Investments4.6%Other (less than 2%)4.3%Retail 3.2%Telecommunications2.9%Food2.7%Metals2.7%Oil & Gas 2.3%**14** *May 31, 2005 Semi-Annual Report*
 
******INVESTMENTS** 
**SEXTANT INTERNATIONAL              FUND**(Graphic              Omitted) *As of May 31. 2005****Issue******Number of Shares******Cost******Market Value******Country******Percentage**************Aircraft*********Embraer Aircraft ADR1,713$38,169$51,904Brazil1.7%     ***Automotive*********Nissan Motor ADR2,00030,08539,321Japan1.3% ***Banking***Australia & New Zealand Banking ADS1,00084,50081,350Australia2.8%AXA ADS3,00059,78473,470France2.5%Banco Bilbao Vizcaya ADS3,80039,18259,622Spain2.0%ING Groep ADS2,20054,95461,006Netherlands2.1%Toronto-Dominion Bank1,40018,15959,542Canada2.0%*SUB-TOTAL*256,579334,99011.4%      ***Building Materials***CRH plc ADR2,00023,07551,400Ireland1.8%Hanson plc ADR1,10033,05550,809United Kingdom1.7%James Hardie Industries NV ADS2,00050,04150,840Netherlands1.7%*SUB-TOTAL*106,171153,0495.2%      ***Computers***Business Objects  ADS*6,00019,570171,960France5.9%Dassault Systems ADR1,00028,38046,640France1.6%Sina*1,60039,84944,528China1.5%*SUB-TOTAL*87,799263,1289.0%      ***Consumer Products***Allied Domecq plc1,20040,57660,780United Kingdom2.1%Coca-Cola Femsa ADS2,10023,91049,980Mexico1.7%*SUB-TOTAL*64,486110,7603.8%      ***Electronics***Epcos AG ADS*2,50057,30732,325Germany1.1%Infineon Technologies AG* 5,00045,90044,100Germany1.5%*SUB-TOTAL*103,20776,4252.6%      ***Hotels & Motels***     Fairmond Hotels & Resorts1,70044,64158,633Canada2.0%      ***Machinery-Electrical***Nidec1,20035,70033,300Japan1.1% ***Medical-Drugs***Glaxo Smithkline plc ADR4009,80019,880United Kingdom0.7%Novartis AG ADR1,00045,17748,830Switzerland1.7%Soreno SA ADR2,00029,76130,520Switzerland1.0%*SUB-TOTAL*84,73899,2303.4%      ***Metals & Mining***Fording Canadian Coal Trust60050,62553,904Canada1.9%Potash Corp of Saskatchewan50034,23490,410Canada3.0%Rio Tinto plc ADS50031,17559,510United Kingdom2.0%*SUB-TOTAL*116,034203,8246.9%      ***Oil & Gas Production*** EnCana1,00035,02069,340Canada2.4%Repsol-YPF ADR2,00043,59250,120Spain1.7%Total Fina Elf ADR50021,86455,595France1.9%*SUB-TOTAL*100,476175,0556.0%      ***Paper Products***Metso ADS2,10022,80242,147Finland1.5%UPM-Kymmene Oyj ADS3,50064,38468,180Finland2.3%*SUB-TOTAL*87,186110,3273.8%      ***Photographic Equipment***Canon, Inc ADR1,00023,42654,201Japan1.9%Fuji Photo Film ADR40010,05012,516Japan0.4%*SUB-TOTAL*33,47666,7172.3%      ***Publishing-Books***     Pearson plc ADS4,00048,64048,400United Kingdom1.7%      **Real Estate-Development**Intrawest 1,20021,84026,760Canada0.9% ***Telecommunications***American Movil 2,00029,725113,360Mexico3.9%BCE1,60030,12036,800Canada1.3%British Sky Broadcasting ADS*45011,06317,942United Kingdom0.6%China Mobil Ltd 2,00033,54136,520China1.2%PT Indosat ADR1,00020,95225,750Indonesia0.9%SK Telecom ADS3,00058,06162,760 South Korea2.1%Telefonica ADS1,00033,61050,440Spain1.7%Telefonos de Mexico ADS2,00035,17037,320Mexico1.2%Telus2,00063,21964, 060Canada2.2%*SUB-TOTAL*315,461444,95215.1%      ***Transportation***Canadian Pacific  Ltd.1,20020,33844,340Canada1.5%Lan Chile ADS3,50024,636128,450Chile4.4%*SUB-TOTAL*44,974172,7905.9%      ***Utilities-Electric***Enel ADR1,30058,87758,760Italy2.0%Enersis ADR4,00037,12537,080Chile1.3%Korea Electric Power ADS4,00061,26159,560Korea2.0%*SUB-TOTAL*157,263155,4005.3%      ***Utilities-Gas***Transport de Gas del Sur ADR1,50018,8079,300Argentina0.3% ***Total Investments*****$1,795,732****$2,634,265****89.7%****Other Assets (net of liabilities)****301,549****10.3%****Total Net Assets****$2,935,814****100.0%** * Non-income producing**May 31, 2005 Semi-Annual Report** *15***FINANCIAL HIGHLIGHTS** **SEXTANT                INTERNATIONAL FUND**(graphic                omitted)*Selected data per share of capital stock outstanding            throughout the period:*      **Period ended****For Year Ended November 30,** **May 31, 2005****2004****2003****2002****2001****2000****Net asset value at beginning of period****$9.40****$8.05****$6.07****$7.24****$8.52****$8.32***Income from investment operations*Net investment income0.040.030.050.020.040.43Net gains or losses on securities (both realized              and unrealized)0.61 1.35 1.97 (1.16) (1.30) 0.20Total from investment operations0.651.382.02(1.14)(1.26)0.63*Less distributions*Dividends (from net investment income)-(0.03)(0.04)(0.03)(0.02)(0.43)Total distributions-(0.03)(0.04)(0.03)(0.02)(0.43)**Net asset value at end of period****$10.05****$9.40****$8.05****$6.07****$7.24****$8.52** **Total Return****6.92%****17.11%****33.23%****(15.80)%****(14.80)%****7.62%** **Ratios/Supplemental data**Net assets ($000), end of period$2,936$2,053$1,650$1,150$1,445$1,736 **Ratio of expenses to average net assets**Before  fee waiver0.64%1.22%1.29%1.36%1.37%1.36%After  fee waiver0.57%1.10%1.10%1.17%1.17%1.20%Ratio of net investment income after waiver to average              net assets0.43%0.31%0.75%0.20%0.34%4.74% **Portfolio turnover rate****3%****7%****4%****4%****6%****11%**
 
**STATEMENT OF ASSETS & LIABILITIES**
**SEXTANT INTERNATIONAL FUND**(graphic omitted)    *As of May 31, 2005*       **Assets**   Investments (cost $1,795,732) $2,634,265Cash 301,255Dividends receivable 4,093Total Assets $2,939,613**** **Liabilities** Other Liabilities 3,799Total Liabilities 3,799**** **Net Assets** **$2,935,814****** ******Fund shares outstanding** **292,133****** **Analysis of Net Assets** Paid in Capital (unlimited shares authorized, without par        value) 2,270,243Accumulated net realized loss on investments (172,962)Unrealized net appreciation on investments  838,533Net Assets applicable to Fund shares outstanding $2,935,814**** **Net Asset Value, Offering and Redemption price per share****$10.05**
 

*(The accompanying notes are an integral        part of these financial statements)*
***16*** **May 31, 2005 Semi-Annual Report********STATEMENT OF OPERATIONS****** 
****SEXTANT INTERNATIONAL FUND (graphic omitted)**************** *For the semi-annual period ended May 31, 2005*    **Investment income**   Dividend income (net of Foreign taxes of $3,915) $24,243Gross investment income $24,243**** **Expenses** Investment advisory and administration fee 7,667Filing and registration fees 2,307Custodian fees 1,745Legal fees 1,390Audit fees 1,175Insurance 576Printing and postage 305Trustee fees 224Other expenses 76Total gross expenses 15,465Less custodian fees waived (1,587)Net expenses 13,878Net investment income $10,365**** **Net realized gain on investments** Proceeds from sales 69,633Less cost of securities sold (based on identified cost) 67,252Realized net gain 2,381**** **Unrealized gain on investments** End of period 838,533Beginning of period 692,525Increase in unrealized gain for the period 146,008Net realized and unrealized gain 143,389  **Net increase in net assets resulting from operations************$158,754**
 
******STATEMENT            OF CHANGES IN NET ASSETS**
****SEXTANT INTERNATIONAL FUND (graphic omitted)**************** **Period ended****Year ended** **May 31, 2005****Nov. 30, 2004****INCREASE  IN NET ASSETS*****From Operations***Net investment income $10,365$5,934Net realized gain on investments2,381460Net increase  in unealized appreciation146,008279,482Net increase  in net assets from operations 158,754285,876*******Dividends to shareowners from***Net investment income-(5,876)*******From fund share transactions***Proceeds from sales of shares781,575652,936Value of shares issued in reinvestment of dividends-5,863 781,575658,799Cost of shares redeemed(57,077)(535,868)Net increase in net assets724,498122,931**Total increase in net assets****$883,252****$402,931********NET ASSETS**Beginning of period2,052,5621,649,631End of period$2,935,814$2,052,562******Undistributed net investment income**-2,020   **Shares of the fund sold and redeemed**Number of shares sold79,59575,589Number of shares issued in reinvestment of dividends-624 79,59576,213Number of shares redeemed(5,721)(62,906)**Net increase  in number of shares outstanding****73,874****13,307**
*(The accompanying notes are an integral part of these          financial statements)*
****May 31, 2005 Semi-Annual Report**** ***17*****Expenses (Unaudited)**
****SEXTANT INTERNATIONAL FUND (graphic omitted)****************      As a Sextant International Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.    
**EXAMPLE**  The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].

**ACTUAL EXPENSES**    The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.

**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**    The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.

Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. 

**SEXTANT INTERNATIONAL FUND**
Beginning Account Value [Friday, May 28, 2004]Ending Account Value           [Tuesday, May 31, 2005]Expenses Paid During Period*Actual          (24.58% return           after expenses)$1,000.00$1,245.80$12.80Hypothetical          (5% return           before expenses)$1,000.00$1,038.60$11.63
* Expenses are equal to Sextant International      Fund's annualized expense ratio of 1.14% (based on the most recent semi-annual      period of December 1, 2004 through May 31, 2005), multiplied by the average  account value of $1,122.90 over the period.
**Portfolio Holdings**
****SEXTANT INTERNATIONAL FUND (graphic omitted)******************Industries**  **Countries**Telecommunications15.1% Canada17.2%Banking11.4% France15.3%Cash10.3% Cash10.3% Computers9.0% United Kingdom 8.8%Other (less than 2%) 7.0% Mexico6.8%Metals & Mining6.9% Chile5.7%Oil & Gas6.0% Spain5.4%Transportation5.9% Japan4.7%Utilities - Electric5.3% Other (less than 2%) 4.7%Building Materials 5.2% Finland3.8%Consumer Products3.8% Netherlands3.8%Paper & Products 3.8% Australia2.8%Medical - Drugs3.4% China2.7%Electronics2.6% Switzerland2.7%Photography2.3% Germany2.6%Hotels & Motels2.0% South Korea2.1%    
  
**18** ***May 31, 2005 Semi-Annual Report***
Additional Performance Information
Average Annual Total Returns (as of 6/30/2005, per NASD requirement)1 Year5 Years10 YearsSextant Growth Fund16.50%0.27%10.12%Sextant International Fund22.95%0.47%8.73%*Sextant Short-Term Bond Fund2.01%4.82%4.92%Sextant Bond Income Fund6.71%8.13%6.42%
*Since inception, 9/28/95 

      Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future performance. The investment return and principal value of investment 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. The average total return for a category is determined by Saturna Capital, utilizing the Morningstar database. Results are shown for twelve months in this report because of the Sextant Funds performance fee advisory structure.
**NOTES                TO FINANCIAL STATEMENTS**
***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 series investment company under        the Investment Company Act of 1940. Five portfolio series        have been created to date: Sextant Short-Term Bond Fund ("Short-Term Bond"), Sextant Bond        Income Fund ("Bond Income"), Sextant Growth Fund ("Growth"), and Sextant International Fund ("International", collectively,the “Funds”),        and Idaho Tax-Exempt Fund, distributed through a separate prospectus        and the results of which are contained in a separate report. The investment objectives of Short-Term Bond is capital preservation and current income, of Bond Income is current income, of Growth is long-term capital growth, and of International  is long-term capital growth, respectively.        
***Unaudited Information*****The information in this interim report has not been subject to independent audit.
***Significant Accounting                Policies*****The following is a summary of the significant        accounting policies followed by the Funds.        
**Securities valuation:**          Investments in securities traded on a national securities exchange            (or reported on the NASDAQ national market) are stated at the last            reported sales price on the day of valuation; other securities traded            in the over-the-counter market and listed securities for which no            sale was reported on that date are stated at the last quoted bid            price. Restricted securities and other securities for which quotations are not readily available          are valued at fair value in accordance with procedures adopted by the Board of Trustees.        
The cost of securities is the same for accounting and Federal income tax purposes. Security transactions are recorded on trade date.  Realized gains and losses are recorded on the identified cost basis.        
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., audit fees) are allocated to the Funds on the basis of relative daily average net assets.  Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and rates.        
**Share valuation**        The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash or other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds' shares are not priced or traded on the days  the NYSE is closed.  The offering and redemption price per share for each Fund is equal to each Fund's NAV.        
To discourage speculation, a 2% early redemption penalty on the Fund shares held less than thirty calendar days was initiated effective in March 2005. These penalties are deducted from the redemption proceeds otherwise payable to the shareowner and retained by the Funds as paid-in capital and included in the daily NAV calculation.        
**Income and expenses:**        Interest income is reduced by the amoritization of bond premiums, on a constant yield-to-maturity basis from purchase date to maturty or call, as appropriate. Interest income is increased by accretion for bonds underwritten as original issue discounts and for bonds purchased at market discounts.  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., audit fees) are allocated to the Funds and the other fund of the Trust on the basis of relative daily average net assets.  The advisor has agreed to certain limits on expenses as described below.        
**Income taxes:**          The Fund's policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all their income to shareowners.  Therefore, no provision for Federal income taxes is required.**May 31, 2005 Semi-Annual Report** *19*

**Dividends and distributions to shareowners:**Dividends and distributions to shareowners, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. For the  Short-Term Bond  and  Bond Income, dividends are paid daily and distributed on the last business day of each month. For   Growth  and  International, dividends are payable at the end of each November. Shareowners electing to reinvest dividends and distributions purchase additional shares at the net asset value on the payable date. **Use of Estimates:**The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.        
***Transactions with Affiliated Persons*****Under a contract approved by shareowners on September 28, 1995, Saturna Capital Corporation provides investment advisory services plus certain other administrative, distribution and shareowner services to the Funds. 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 Morningstar mutual fund category average. The adviser has voluntarily undertaken to limit expenses of Sextant Short-Term Bond Fund to 0.60% through March 31, 2006 and waived its investment advisory administrative fee as to either Sextant bond fund completely so long as assets of that fund are less than $2 million.          For the six months ended may 31, 2005, Bond Income and Growth incurred advisory  expenses of $6,005 and $24,219 respectively. International incurred  advisory expenses of $7,667 and Short-Term Bond incurred advisory expenses of $6,968.  In accordance with  expense waivers  for the six months ended May 31, 2005, Saturna Capital waived $4,341 of the  Short-Term Bond  advisory fee.  The Funds' custodian, National City Bank Indiana, waived a portion of its fees for earnings credits.  The Funds' compensated its Chief Compliance Officer $4,991, for the six months ended May 31, 2005.        
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 itself registered as a broker-dealer and acts as distributor without compensation. Saturna Brokerage Services, Inc. is also the primary stockbroker used to effect portfolio transactions for  Growth  and  International, and was paid $279 and $0, respectively in commissions  during the six months ended May 31, 2005.        
One trustee  is also a director and    officer of Saturna Capital Corporation. The  unaffiliated trustees receive a fee of $200 per  meeting attended,    and in the six months ending May 31, 2005, such fees totaled $2,400 for the Trust. 
***Dividends*****As of May 31, 2005, the tax composition of dividends are as follows:      
Short Term BondIncomeIncome Per Share Long-term Capital GainsLong-term Capital Gains Per Share 5/31/05$45,506$0.09$-$-11/30/04$90,916$0.19$-$- Bond IncomeIncomeIncome Per Share Long-term Capital GainsLong-term Capital Gains Per Share 5/31/05$59,518$0.11$-$-11/30/04$111,643$0.22$-$- GrowthIncomeIncome Per Share Long-term Capital GainsLong-term Capital Gains Per Share 5/31/05$0$-$-$-11/30/04$4,622$0.012$60,280$0.163 InternationalIncomeIncome Per Share Long-term Capital GainsLong-term Capital Gains Per Share 5/31/05$0$-$-$-11/30/04$5,876$0.27$-$-
***Investments*****At May 31, 2005, the net unrealized gain (loss) on investments for Bond Income, Short-Term Bond, Growth and International were $173,686, ($10,228), $2,387,158, and $838,533, which consist of unrealized gains of $176,399, $8,305, $2,599,306, and $912,713, and unrealized losses of $2,713, $18,533, $212,148, and $74,180, respectively.  
During the six months ended May 31, 2005, Bond Income purchased $520,779 of securities and sold/matured $106,937. Comparable figures for Short-Term Bond are $889,970 purchased $493,096 sold/matured; for Growth $722,427 and $493,096; and for International, $585,745 and $69,633.  
 
*20* *May 31, 2005 Semi-Annual Report*
**Availability of Sextant Portfolio Information (unaudited)**

(1) The Sextant Funds file complete schedules of portfolio    holdings with the SEC for the first and third quarters of each fiscal year    on Form N-Q.    (2) The Funds’ Forms N-Q are available on the SEC’s website at    http://www.sec.gov., and at www.saturna.com.    (3) The Funds’ Forms N-Q may be reviewed and copied at the SEC’s    Public Reference Room in Washington, DC. Information on the operation of    the Public Reference Room may be obtained by calling 1-800-SEC-0330.    (4) The Funds make a complete schedule of portfolio holdings after the end    of each month available to investors at http://www.saturna.com.
**Availability of Proxy Voting Information (unaudited)**
(1) A description of the policies and procedures that the Funds    use to determine how to vote proxies relating to portfolio securities is    available (a) without charge, upon request, by calling Saturna Capital at    1-800 728-8762 (b) on the Funds’ website at http://www.saturna.com;    and (c) on the SEC’s website at http://www.sec.gov.    (2) Information regarding how each Fund voted proxies relating to portfolio    securities during the most recent 12-month period ended June 30 is available    (a) without charge, upon request, by calling Saturna Capital at 1-800 728-8752;    (b) on the Funds’ website at http://www.saturna.com; and (c) on the    SEC’s website at http://www.sec.gov.

   

 

(logo)

SATURNA                        CAPITAL*Investment counsel, Discount Brokerage                      No-Load Mutual Funds, Retirement Plans*

**Web: http://www.saturna.comE-mail: sextant@saturna.com**

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

This                      report is issued for the information of the shareoweners                      of the Funds of the Trust. 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 Trust. The Sextant Funds are a series of Saturna Investment Trust 

  

 

**May 31, 2005 Semi-Annual Report***21*
**Idaho Tax-Exempt Fund    (Graphic Omitted)**
**Semi-Annual Report            May 31 2005**
**Fellow Shareowners:**
Idaho Tax-Exempt Fund provided a total return of 1.61% for the six months and 5.33% for twelve months ending May 31, 2005.  Total Fund assets are unchanged at $8.47 million from our November 30, 2004 report.          
In the last six months, while short-term rates rose, long-term rates actually declined-a phenomenon called "yield curve flattening." This type of yield curve shifting improves returns for long-bond maturities and reduces returns on short-bond maturities. With the average maturity of the Idaho Fund at the 5-year pivot point, the Fund was neither benefited or penalized by the curve shift.

Rates on long-term bonds remain low for several reasons: (1) Overseas demand continues strong, as our currency strengthens and our yields are relatively high. (2) Current income and capital preservation are replacing growth as the objective for millions of investors nearing retirement age. (3) Volatile stock market returns shift investor focus to bonds. (4) Core inflation rates are less than 1%, meaning bonds provide postive real (after inflation) returns.

We look forward to higher rates as an opportunity to buy higher yielding bonds and extend the dollar-weighted average maturity of the Fund towards a more normal 7-10 years, but cannot forecast when this is likely to happen. 

Idaho's economy is strong, and it is a safe place to live. Idaho's pro-business policies, well managed budget and conservative governments give the State a strong competitive edge. The national economy is strong too, with high consumer confidence and declining federal deficits.

We invite you to review the advantages of the Idaho            Tax-Exempt Fund, including low expenses, income free from Idaho and            federal income taxes (including federal alternative minimum tax), a high-quality diversified bond portfolio and            professional supervision. We welcome your suggestions.            Only with your help can we be certain that we are meeting your investment            needs - our primary objective.

***Nicholas Kaiser,******Phelps                  McIlvaine,*****President**
**Vice President, Portfolio Manager**
**July 15, 2005*****Average Annual Total Returns*****1 year****5 years****10 years****+5.27%****+5.47%****+5.06%**
Performance date for years ended 6/30/2005.

P**erformance data quoted in this report represents past  performance and is no guarantee of future performance. The investment return and principal value of investments in the Fund fluctuate daily, and an investor's shares when redeemed may be worth more or less than the original cost.**

*22* *Semi-Annual Report May 31, 2005***Investments****Idaho Tax-Exempt Fund (grahic omitted)****Rating*****Issuer****Coupon/Maturity****Face Amount****Market Value****Percentage**   *As of May 31, 2005*******Electric Power** AAAIdaho Falls Electric Revenue 6.75% due 4/1/2019$155,000 $156,6761.8%      ******Financial Services** AAABoise City General Fund Revenue5.20% due 12/1/2017160,000175,8942.1%AAA"5.25% due 12/1/2018100,000109,6561.3% SUB-TOTAL260,000285,5503.4%      ******General Obligation** AA-Ada & Canyon JSD #25.50% due 7/30/2011175,000 197,1072.3%AA-"5.50% due 7/30/2015100,000 115,0601.4%AAAAdams County5.00% due 8/1/2014110,000 112,6081.3%A+Bannock County Jail5.05% due 9/1/201295,000 98,3441.2%AAABannock County SD #25 Pocatello5.20% due 8/1/2014100,000104,2941.2%A+"5.25% due 8/1/2016110,000 114,6181.4%A+"4.90% due 8/1/200990,00093,2751.1%AAABingham County SCD #55 Blackfoot4.65% due 8/1/2017285,000302,4713.6%AABoise City ISD UTGO 19965.50% due 7/30/2016150,000156,7931.8%AABoise City ISD Ref. Ada & Boise5.00 due 8/15/2014100,000111,0701.3%ABoise County SD #73 Horshoe Bend5.15% due 7/31/2010125,000 129,8651.5%AAABoundary County SCD #1014.05% due 8/1/2015200,000208,3542.5%AAA"5.10% due 8/1/2022130,000142,0511.7%AAACaldwell, Idaho 5.30% due 5/15/2014150,000 163,6481.9%AAACanyon County SCD #139 Valley View4.05% due 8/15/201680,00081,3141.0%ACanyon County SD #131 Nampa4.75% due 8/15/2019325,000344,8964.1%AAACanyon County SD #134 Middleton4.65% due 7/31/2016170,000181,6892.1%ACanyon County SD #1356.00% due 8/1/200750,000 49,8090.6%AAACassia & Twin Falls JSD #1515.375% due 8/1/201385,000 87,1341.0%AAA"5.375% due 8/1/201575,000 76,8830.9%AAAClark County SD #161 Dubois5.00 % due 8/1/2015270,000287,1923.4%AAAIdaho Housing & Finance Association4.80% due 6/1/2017100,000107,4461.3%AAAKootenai County SD #2735.00% due 7/30/201670,000 71,8350.8%AAAKuna Sch/Comm Library District4.90% due 8/1/201375,000 78,8170.9%AAALemhi County4.20% due 8/1/2015100,000103,4961.2%AAAMeridian Free Library District5.00% due 8/1/2015200,000204,0122.4%AAAOneida County SCD #351 Malad City4.00% due 8/15/2015150,000153,5361.8%AAAOwyhee & Canyon Cos. JSD #3704.55% due 8/15/2016160,000171,6142.0%AAAPower & Cassia Cos. JSD #3815.25% due 8/1/201260,000 64,1560.8%AAATeton County SD #401 5.50% due 8/1/201275,000 76,9900.9% SUB-TOTAL3,965,0004,190,37749.4%      ******Housing**  AAIdaho Housing Agency, Single Family Mortgage, B-1 6.85% due 7/1/201210,0009,9460.1%AAIdaho Housing Agency, Refunding Series A 6.15% due 7/1/202445,00044,7860.5%AAAIdaho Housing Agency, Single Family Mort Mezz-E-16.60% due 7/1/201115,00014,7270.2%AAAValley County Jail Project Ref.4.70% due 8/1/2014125,000128,9551.5% SUB-TOTAL195,000198,4142.3%** These  bond ratings reflect the adviser's current rating of each bond, as determined using Standard & Poor's and Moody's ratings.**Semi-Annual Report May 31, 2005********23***Investments****Idaho Tax-Exempt Fund (grahic omitted)****Rating****Issuer****Coupon/Maturity****Face Amount****Market Value****Percentage********Medical/Hospitals** AAAIdaho Health Facility Auth. Ref. Holy Cross5.25% due 12/1/2011$65,000$69,0770.8%AAAIdaho Health Facility Auth Rev Ref Holy Cross Sys Corp. Rev 5.25% due 12/1/2014110,000116,6291.4%AAAIdaho Health Facility Auth. Corp Holy Cross Refunding5.00% due 12/1/2022115,000118,8641.4%AAAMadison CO Hospital COP5.00% due 12/1/2018105,000111,1531.3% SUB-TOTAL395,000415,7234.9%      ****Pollution Control** AAAIdaho Bond Bank Authority 4.30% due 9/1/2022135,000136,4891.6%      ****Real Estate** AAABoise City Urban Renewal Agency Pk Rev & RA5.00% due 9/1/201265,00068,9460.8%AAAIdaho State Bldg Association5.05% due 9/1/201895,00098,8981.2%AAAIdaho State Bldg Authority 5.00% due 9/1/2021100,000 104,8561.2%AJerome Urban Renewal District5.40% due 9/1/2013200,000205,2962.4% SUB-TOTAL460,000477,9965.6%      ******Roads** APost Falls L.I.D. #91-47.95% due 4/15/200620,000 19,8710.2%APost Falls L.I.D. #91-47.95% due 4/15/200720,000 19,8550.2% SUB-TOTAL40,00039,7260.4%       **State Education**    AAABoise State University Revs-Ref.5.10% due 4/1/2014300,000 319,3333.8%AAAIdaho State  Building Authority4.00% due 9/1/2016105,000106,3001.3%AAAIdaho State University Ref & I mpt4.90% due 4/1/2017150,000157,9951.9%AAAIdaho State University Rev4.625% due 4/1/2024220,000229,2602.7%AAAUniversity of Idaho5.60% due 4/1/2015185,000195,5042.3%AAAUniversity of Idaho Student Fee Rev.5.00% due 4/1/2019200,000217,0062.6% SUB-TOTAL1,160,0001,225,39814.6%      ******Sewer** ATroy Sewer Revenue7.80% due 2/1/200615,000 14,9450.2%ATroy Sewer Revenue7.90% due 2/1/200715,000 14,9660.2%ATroy Sewer Revenue8.00% due 2/1/200815,000 14,9820.2%ATroy Sewer Revenue8.00% due 2/1/200920,000 19,9830.2%ATroy Sewer Revenue8.00% due 2/1/201020,000 20,0090.2% SUB-TOTAL85,000 84,8851.0%       **Urban Renewal**    AAABoise City Urban Ren Agcy Lease Rev5.875% due 8/15/2025190,000 210,8412.5%AAPocatello Dev Auth Rev Al Tax Inc5.15% due 3/1/2011150,000 153,8651.8% SUB-TOTAL340,000 364,7064.3%       **Water Supply**    AAABlackfoot COP Series 20005.80% due 9/1/2018135,000151,1201.8%AAAKetchum Water Revenue4.75% due 9/1/201360,00062,3670.7%AAAMcCall Water System6.25% due 9/1/2008200,000 207,8982.5%AAAMcCall Water System6.375% due 9/1/201470,00072,2310.9%AAAMoscow Sewer Revenue4.125% due 11/1/2008165,000169,6522.0% SUB-TOTAL630,000663,2687.9%    **Total Investments****(Cost = $7,974,472)****7,820,000****8,239,208****97.2%** **Other Assets (net of liabilities)** **233,442****2.8%** **Total Net Assets** **8,472,650****100.0%***24* *Semi-Annual Report May 31, 2005*****Financial Highlights****Idaho Tax-Exempt Fund (grahic omitted)***Selected data per share of capital stock outstanding                throughout the period:***Period ended May 31,****Year Ended November                  30,** **2005****2004****2003****2002****2001****2000****Net asset value at beginning of period****$5.39****$5.46****$5.37****$5.28****$5.13****$5.01***Income from investment operations*Net investment income0.100.190.210.220.220.23 Net gains or losses on securities (both realized                & unrealized)(0.01)(0.07)0.090.090.150.12 Total from investment operations0.090.120.300.310.370.35 *Less distributions*Dividends (from net investment income)(0.10)(0.19)(0.21)(0.22)(0.22)(0.23)Total distributions(0.10)(0.19)(0.21)(0.22)(0.22)(0.23) **Net asset value at end of period****$5.38****$5.39****$5.46****$5.37****$5.28****$5.13** **********************Total Return****1.61%****2.29%****5.40%****5.98%****7.40%****7.28%** **Ratios / Supplemental Data**Net assets ($000), end of period$8,473$8,472$7,692$6,943$6,650$5,628 **Ratio of  expenses to average net assets**Before  fee waivers0.48%0.95%0.88%0.88%0.90%0.94%After  fee waivers0.47%0.93%0.85%0.80%0.79%0.80%Ratio of net investment income after fee waiver to average net assets1.79%3.56%3.78%4.14%4.21%4.69% **Portfolio turnover rate****3%****15%****6%****11%****13%****14%****Statement of Assets and Liabilities****Idaho Tax-Exempt Fund***As of May 31, 2005*   **Assets**Bond Investments (Cost $7,974,472)$8,239,208Cash128,146Interest receivable117,959Insurance Reserve Premium801Total Assets$8,486,114 **Liabilities**Other Liabilities13,464Total Liabilities13,464 **Net Assets**$8,472,650 **Fund Shares Outstanding**1,575,646 **Analysis of Net Assets**Paid in Capital (unlimited shares authorized, without par value)8,236,508Accumulated net realized loss (28,594)Unrealized net appreciation  on investments264,736Net Assets applicable to Fund shares outstanding$8,472,650**Net Asset Value, Offering and Redemption price per share****$5.38**
*(The accompanying notes are an integral part of these financial statements)*
*Semi-Annual Report May 31, 2005* *25***Statement of Operations****Idaho Tax-Exempt Fund (grahic omitted)***For the period ended May 31, 2005* **Investment income**   Interest income $201,947Amortization of bond premium (11,605)Accretion 523Other income 180 Gross investment income $191,045  **Expenses** Investment advisory and administration fee 21,170Audit fees 5,179Legal and Compliance fees 3,831Insurance 2,763Shareholder service fee 2,274Custodian fees 1,833Trustees fees 1,381Printing and postage 1,178Filing and registration fees 587Other expenses 329Total gross expenses 40,525Less custodian fees waived (876)Net expenses 39,649Net investment income $151,396    **Net realized gain on investments** Proceeds from sales 216,460Less cost of securities sold (based on identified                cost) 210,585Realized net gain 5,875    **Unrealized gain on investments** End of period 264,736Beginning of period 293,708Decrease in unrealized gain for the period (28,972)Net realized and unrealized loss on investments  (23,097)    **Net increase in net assets resulting from operations** **$128,299****Statement of Changes in Net Assets****Idaho Tax-Exempt Fund** Period endedYear ended May 31, 2005Nov. 30, 2004**INCREASE IN NET ASSETS**  ***From Operations***  Net investment income$151,396$281,029Net realized gain (loss) on investments5,875(13,470)Net decrease in unrealized appreciation (28,972) (76,652)Net increase in net assets from operations  128,299 190,907 ***Dividends to shareowners from***Net investment income(151,512)(281,029) ***From fund share transactions***Proceeds from sales of shares389,6911,610,860Value of shares issued in reinvestment of dividends122,666223,255 512,3571,834,115Cost of shares redeemed(488,918)(963,286)Net increase in net assets from share transactions 23,439870,829**Total increase in net assets****$226****$780,707** **NET ASSETS**Beginning of period8,472,4247,691,717End of period**$8,472,650****$8,472,424** **Shares of the fund sold and redeemed**Number of shares sold72,411298,944Number of shares issued in reinvestment of dividends22,83341,311 95,244340,255Number of shares redeemed(90,839)(178,689)**Net increase in number of shares outstanding****4,405****161,566**
*(The accompanying notes are an integral part of these financial statements)*

 
*26* *Semi-Annual Report May 31, 2005***
**Expenses (Unaudtied)****Idaho Tax-Exempt Fund (grahic omitted)**
As an Idaho Tax-Exempt mutual fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as a checkbook to use for redemptions or bank wires.**EXAMPLE**    The exampleis based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].**ACTUAL EXPENSES**    The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**    The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Idaho Tax-Exempt Fund), and charges for extra services such as check writing and bank wires.    Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Idaho Tax-Exempt Fund do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds. 
**IDAHO TAX-EXEMPT FUND**Beginning Account Value [Friday, May 28, 2004]Ending Account Value [Tuesday, May 31, 2005]Expenses Paid During Period*Actual            (5.33% return             after expenses)$1,000$1,053.30$9.55Hypothetical            (5% return             before expenses)$1,000$1,040.70$9.49
* Expenses are equal to Idaho Tax-Exempt Fund’s annualized expense ratio of 0.93% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,026.65 over the period.
**Portfolio Holdings****Idaho Tax-Exempt Fund (grahic omitted)**Ratings           established By           AdvisorBy Standard & Poor'sBy Moody's           Investor ServicesAAA72.3%38.9%63.2%AA9.3%8.8%4.3%A15.5%4.0%3.6%unrated--45.4%26.0%cash2.9%2.9%2.9%
 

*Semi-Annual Report May 31, 2005********27*
 
**Notes to Financial Statements****Idaho Tax-Exempt Fund (grahic omitted)**
**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 series investment company under the Investment Company                  Act of 1940. 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.The investment objective of the Idaho Tax-Exempt Fund is to provide income free                  from federal and Idaho                  state income taxes, with a secondary objective of capital preservation.**Unaudited Information**The information in this interim report has not been subject to independent audit.                  
**Significant Accounting Policies****The following is a summary of the significant accounting policies followed by the Fund.                  
Investments:                    Fixed-income securities for which there are no publicly available                      market quotations are valued using matrices based on maturity,                      quality, yield,  and similar factors, which                      are compared periodically to multiple dealer bids and adjusted                      by the adviser under  policies established by                  the Trustees.                  
The cost of securities is the sam efor accounting and Federal income tax purposes. Securities transactions are recorded on trade date. Realized gains and losses are recorded on the identified cost basis.                     Income and Expenses:                  Interest income is reduced by the amortization of bond premiums, on a constant yield-to-maturity basis from purchase date to maturity or call, as appropriate.                   Interest income is increased by accretion  for bonds underwritten as original issue discounts and for bonds purchased at market discounts.                    Expenses incurred by the Trust on behalf of the Fund (e.g., audit fees) are allocated to the Fund and the other Funds of the Trust on the basis of relative daily average net assets.                  
Income taxes:                    The Fund’s policy is to continue to comply with the                    requirements of the Internal Revenue Code that are applicable                    to regulated investment companies and to distribute all its                    taxable income to its shareowners. Therefore, no provision                    for Federal income taxes is required. Further, the Fund intends                    to meet IRS requirements for tax-free income dividends, and requirements                    of the Idaho Department of Revenue for income dividends free                    of Idaho state income tax.                    Dividends and distributions to shareowners:                    Dividends and distributions to shareowners, which are determined                    in accordance with income tax regulations, are recorded on                    the ex-dividend date. Dividends are paid daily and distributed                  on the last business day of each month.                  
Use of estimates:The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 
assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 
**Transactions with Affiliated Persons****Under a contract approved by shareowners on October 12, 1990, Saturna Capital Corporation provides investment advisory services and certain other administrative and distribution services to conduct the Fund’s business. For such services, the Fund pays an annual fee equal to .50% of average daily net assets. For the year ended May 31, 2005, the Fund incurred advisory fee expenses of $21,170.   In accordance with the Fund’s agreement with its custodian, National City Bank of Indiana, for the six months ended May 31, 2005, custodian fees incurred by the Fund amounted to $876. The custodian waived  its fees for earnings credits. The Fund compensated its Chief Compliance Officer $3,074 for the six months ended May 31, 2005.  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 itself registered as a broker-dealer and acts as distributor without compensation. Saturna Capital Corporation acts as shareowner servicing agent for the Fund, for a monthly fee plus certain expenses. For the six months ended May 31, 2005, the Fund paid such a fee of $2,274.                                      

One trustee is also a director and officer of Saturna Capital Corporation. The  unaffiliated trustees receive a fee of $200 per  meeting attended. For the six months ending May 31, 2005, such fees totaled $2,400 for the Trust.                  
**Dividends**As of May 31, 2005, the tax composition of dividends are as follows:                  
..............Tax Free......Income.......Long-term......Long-term                    ..............Income........Per Share.....Capital........Capital Gains5/31/05... $151,512........$0.11............$-........................$-11/30/04 $281,029.........$0.19............$-........................$-                  
**Investments**At May 31, 2005, the net unrealized appreciation of the Fund investments was $264,736 comprised of gross unrealized gains of $277,871 and gross unrealized losses of $13,135.                  
During the six months ended May 31, 2005, the Fund purchased $221,096 of securities and sold/matured $216,460 of securities. *28******Semi-Annual Report May 31, 2005*
**Availability of Idaho Tax-Exempt Fund Portfolio Information(unaudited)**

(1) The Idaho Tax-Exempt Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.  (2) The Fund’s Forms N-Q is available on the SEC’s website at http://www.sec.gov., and at www.saturna.com.  (3) The Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.  (4) The Fund makes a complete schedule of portfolio holdings after the end of each month available to investors at http://www.saturna.com.

****

(graphic omited)Idaho Tax-Exempt Fund

 

**Web: http://www.saturna.comE-mail: idaho@saturna.com**

 

**(logo)                    SATURNA CAPITAL                  Investment Counsel,Discount Brokerage                  No-Load Mutual Funds, Retirement Plans**1-800-SATURNA(1-800-728-8762)***1-888-732-6262                    for automated assistance,                    including Fund prices*

*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.*

 

 

 

 
**Semi-Annual Report May 31, 2005** *29*
 

**CONTROLS AND PROCEDURES**(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On December 29, 2004, Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed the internal control procedures for Saturna Investment Trust and found them reasonable and adequate.

(b) No change.

**EXHIBITS**Exhibits included with this filing:  (a) Code of Ethics. (not required)

 (b) Certifications.  (1) Nicholas Kaiser, President, Saturna Investment Trust  (2) Christopher Fankhauser, Treasurer, Saturna Investment Trust
*30******Semi-Annual Report May 31, 2005*
 

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.**SATURNA INVESTMENT TRUST**  By:  /s/ Nicholas Kaiser  Nicholas Kaiser, President   Date: July 12, 2005  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:  /s/ Nicholas Kaiser  Nicholas Kaiser, President   Date: January 12, 2005

  By:  /s/ Christopher Fankhouser   Christopher Fankhouser, Treasurer  Date: July 13, 2005
**Semi-Annual Report May 31, 2005** *31*
 

 

 

  

 

  

 

 

 

 

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