SECURITIES AND EXCHANGECOMMISSION WASHINGTON, DC 20549**FORM N-CSR****CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENTCOMPANIES** Investment Company Act file number: 811-05071 or33-13247**SATURNA INVESTMENT TRUST** (Exact Name of Registrantas Specified in Charter)**1300 N. State Street Bellingham,Washington 98225-4730** (Address of Principal Executive Offices, includingZIP 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 yearend: November 30, 2005 Date of reporting period: November 30, 2005

**Sextant Mutual Funds (Graphic Omitted)
(Graphic Omitted)**Short-TermBond******(Graphic Omitted)**Bond Income**(GraphicOmitted)**Growth**(Graphic Omitted)**International**

(Graphic Omitted)
Annual ReportNovember30, 2005**
***Table of Contents***
| ***Report of Registered Independent Public AccountingFirm***

***Additional PerformanceInformation***

***Letter To Shareowners***

***SextantShort-Term Bond Fund***

***Sextant Bond IncomeFund***

***Sextant Growth Fund***

***SextantInternational Fund***

***Notes To FinancialStatements***

***Renewal of Investment AdvisoryContracts***

***Trustees and Officers***

***PrivacyStatement*** | ***Page2***

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***Page32*** | ***REPORT OF REGISTERED INDEPENDENT PUBLIC ACCOUNTINGFIRM***

To the Shareholders and Board of Trustees SaturnaInvestment Trust

We have audited the accompanying statements of assets andliabilities of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund,Sextant Growth Fund and Sextant International Fund, each a series of the SaturnaInvestment Trust, including the schedules of investments as of November 30,2005, and the related statements of operations for the year then ended, and thestatements of changes in net assets for each of the two years in the period thenended, and the financial highlights for each of the five years in the periodthen ended. These financial statements and financial highlights are theresponsibility of the Trust’s management. Our responsibility is to expressan opinion on these financial statements and financial highlights based on ouraudits. 

We conducted our audits in accordance with the standards of thePublic Company Accounting Oversight Board (United States). Those standardsrequire that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements and financial highlights are free of materialmisstatement. We were not engaged to perform an audit of the Trust’sinternal control over financial reporting. Our audit included consideration ofinternal control over financial reporting as a basis for designing auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Trust’s internal controlover financial reporting. Accordingly, we express no such opinion. An auditincludes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. Our procedures included confirmation ofsecurities owned as of November 30, 2005, by correspondence with the custodian.Our audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion. 

In our opinion the financial statements and financialhighlights referred to above present fairly, in all material respects, thefinancial position of Sextant Short-Term Bond Fund, Sextant Bond Income Fund,Sextant Growth Fund, and Sextant International Fund, as of November 30, 2005,the results of their operations for the year then ended, and the changes intheir net assets for each of the two years in the period then ended and theirfinancial highlights for each of the five years in the period then ended, inconformity with accounting principles generally accepted in the United States ofAmerica.

Philadelphia, Pennsylvania January 3, 2006

(graphicomitted)Tait, Weller & Baker, LLP |
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| **AdditionalPerformance Information**        |
|----------------------------------------------|
| **AverageAnnual Returns** (as of 12/30/2005) | 1-Year | 5-Years | 10-Years |
| Sextant Short-Term BondFund                  | 1.27% | 4.01% | 4.64% |
| Sextant BondIncome Fund                      | 1.07% | 6.37% | 5.76% |
| SextantGrowth Fund                           | 18.63% | 4.60% | 11.47% |
| SextantInternational Fund                    | 16.75% | 6.16% | 9.76% |

*Performancedata quoted in this report represents past performance, is before any taxespayable by shareowners, and is no guarantee of future performance. Mutual fundperformance changes over time and currently may be significantly higher or lowerthan stated. Recent performance and Morningstar rating data is published onlineat each month’s end. Please visit saturna.com or call Saturna Capital forcurrent performance figures. Total returns are historical and include change inshare value and reinvestment of dividends and capital gains, if any. Shareprice, yield and return will vary and you may have a gain or loss when you sellyour shares. See individual Fund performance discussions for furtherinformation. Funds that invest in foreign securities may involve greater risk,including political and economic uncertainties of foreign countries as well asthe risk of currency fluctuations.*

*Morningstar, Inc. is an independent fundperformance monitor. Rankings are determined monthly from total returns byMorningstar, by category as determined by Morningstar. The overall Morningstarrating for a fund is derived from a weighted average of the performance figuresassociated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating. Theaverage total return for a category is determined by Saturna Capital, utilizingthe Morningstar database. Results are shown for twelve months because theSextant Funds’ performance fees are based on the same period.*

| *2* | *November 30,2005 Annual Report* |
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**Item 1. Reports to Stockholders.**

***FellowShareowners:*** 2005, like 2003 and 2004, was a profitable year forsecurities investors. Stocks provided solid gains, while the bond markets markedtime as interest rates steadily rose. We are pleased to report that both SextantGrowth Fund and Sextant International Fund provided exceptionally high returnsfor the fiscal year ending November 30, 2005. Good performance is attractingmore investors, and the assets of Sextant Growth and Sextant Internationalincreased a dramatic 127% and 217%, respectively, for calendar 2005. SaturnaCapital plans to encourage asset growth further in 2006, as higher assets helpreduce portfolio expense ratios.

Buoyed by consumer and business spending, liberal tradepolicies, higher commodity prices, and mushrooming government expenditures,corporate earnings continued strong in 2005. Core inflation remained calm,checked by higher interest rates and world-wide productivity. Consumerconfidence is strong, buoyed by rising personal incomes. Over the next year, weexpect the overnight bank rate may rise just slightly and the previously hotreal estate sector will slow significantly. Strong economic growth is expectedto continue into 2006, as businesses increase investment spending.

However, a number of ourmarket indicators are flagging caution, and we warn stock market investors toexpect lesser returns in 2006. Inflation is controlled and the Fed’sincrease in short-term interest rates appears to be nearing conclusion, meaning2006 could finally be the year for bonds to shine. 

The no-load Sextant Funds aredesigned to address a broad spectrum of investment needs. Again in 2005, higherequity Fund returns reflected the higher risks of equities - just as expected.All Sextant Funds stress low operating expenses and employ a“fulcrum” advisory fee structure that rewards or penalizes SaturnaCapital for investment results. Contrary to popular wisdom, a higher fundadvisory fee that results from superior investment performance under a fulcrumadvisory fee structure and consequently a higher fund expense ratio is actuallyin the best interests of shareowners. 

For the fiscal year ended November 30, 2005,comparative total returns and percentile Morningstar category rankings (1 isbest)* are:
***Sextant Fund******Total Return******vs. Morningstar******Total Return******Rank (category size)****Short-TermBond0.94%Short-Term Bonds1.34%238 (408)Bond Income1.40%Long-Term Bonds2.61%56 (71)Growth20.76%Mid-Cap Growth13.55%49 (929)International19.95%Foreign LargeBlend13.53%30 (597)
Wewould especially like to thank Mr. A. Herbert Ershig, who retired from the boardof trustees this year, for his generous advice and service over the years.Joining the board is the distinguished economist Herbert Grubel. Widelypublished in both the popular and academic press, Professor Grubel has taughteconomics in North American universities (Yale, Stanford, Chicago, Wharton,Simon Fraser) as well as leading institutions in Europe, Africa and Asia. Heserved a term in the Canadian parliament, and is now a Senior Fellow at theFraser Institute in Vancouver BC.

Further information on each Fund is found inits section of this report. Operating expenses are well below industry averages.Perhaps uniquely, equity portfolio brokerage commission expenses are entirelyborne by the adviser. Consequently, the Sextant Funds can not use portfoliobrokerage to pay any expenses of the Funds or the adviser. In the footnotes, youwill notice another unusual feature of the Sextant funds: on average, over 40%of each Sextant Fund is owned by the trustees, officers, and their relatedaccounts. Our portfolio managers welcome your comments and suggestions. Weinvite you to invest your money with ours.

***Nicholas Kaiser, President******PhelpsMcIlvaine, Vice President***(Manager, Sextant Growth; SextantInternational)(Manager, Sextant Bond Income; Sextant Short-TermBond)
 

 

 

*The 12-month Rank shows how each Fund ranks in its Morningstar peercategory for the year ended November 30, 2005 - please see previous page formore performance information and back of report for Morningstar disclosure.

December 30, 2005
*November 30, 2005 AnnualReport**3*
(Graphic omitted) 

***Sextant Short-Term BondFund***

***Investments***
***Rating*******Issuer******Coupon/Maturity******Face Amount******Market Value******Percentage********* ***Building Products*** ALowe's Companies7.50% due12/15/2005$70,000$69,6322.7%       ***Cosmetics & Toiletries*** AAvon Products6.55% due8/1/200795,00097,3623.8%    ***Finance & Insurance*** AAllliance CapitalManagement5.625% due 8/15/200665,00065,1642.6%AAAFederal Farm Credit Bank4.62% due 12/7/2009100,00098,3683.8%AAAFederal Home Loan Bank4.60% due 5/18/2009120,000118,3674.6%AAAFederal Home Loan Mortgage4.125% due 11/6/2009120,000116,9184.6%AAAFederal National Mortgage Assoc.4.00% due 2/23/2007,5.00% due 2/23/2010120,000117,9394.6%A+International Finance AIG5.75% due10/15/200695,00094,9773.7% ***SUBTOTAL*620,000611,73323.9%    ***Machinery*** A-RockwellAutomation International6.15% due 1/15/200895,00096,3903.7%    ***Medical Drugs*** AAmgen6.50% due12/1/200790,00092,2463.6%AAAPfizer5.625% due 2/1/2006100,000100,0273.9%  *SUBTOTAL*190,000192,2737.5%    ***Publishing*** A-Tribune Company6.875% due11/1/200645,00045,5031.8%       ***Telecommunications*** AA-Southwestern Bell Telephone6.625% due 7/15/200795,00096,8103.8%A-Verizon Wireless Capital5.375% due12/15/200682,00081,8883.2%  *SUBTOTAL*177,000178,6987.0%    U.S. Government AAAU.S.T-Note  3.25% due 8/15/2008225,000218,4268.5%AAAU.S.T-Note 4.00% due 6/15/2009425,000419,22316.4%AAA U.S.T-Note 4.00 due 4/15/2010 200,000196,5947.7%  *SUBTOTAL*850,000834,24332.6%    ***Utilities*** AA-FloridaPower & Light6.875% due 12/1/200595,00094,6453.7%BBBPSI Energy7.85% due10/15/200790,00093,4243.7%ASempra Energy Credit Linked Note6.95% due12/1/200592,00091,4903.6%  *SUBTOTAL*277,000279,55911.0%   Total Investments(Cost =$2,449,810)$2,419,000$2,405,39394.0%Other Assets (net ofliabilities)** **152,6906.0%**Total Net Assets** **$2,558,083****100.0%****Ratings arethe lesser of S&P, Fitch or Moody's (unaudited)*
 
*4**November 30, 2005 Annual Report*
 

(Graphic omitted) 

***Sextant Short-Term Bond Fund***

******

***Financial Highlights***
 **Year ended November30,***Selected data per share ofcapital stock outstanding throughout the year:***2005****2004****2003****2002****2001****Netasset value at beginning of year****$4.97****$5.09****$5.07****$5.10****$4.95** Income from investment operations Net investment income0.170.190.230.270.26 Net gains or losses on securities (bothrealized and unrealized)(0.12)(0.12)0.02(0.02)0.14Total frominvestment operations0.050.070.250.250.40 *Less distributions* Dividends (from net investmentincome)(0.17)(0.19)(0.23)(0.28)(0.25)Total distributions(0.17)(0.19)(0.23)(0.28)(0.25)Paid incapital from early redemption penalties*0.00---- **Net asset value at end ofyear****$4.85****$4.97****$5.09****$5.07****$5.10****Total return****0.94%****1.41%****5.00%****4.90%****8.37%** **Ratios/supplemental data**Net assets ($000), end of year$2,557$2,255$2,259$2,177$2,189**Raio of expenses to average net assets** Before fee waivers1.23%1.14%1.17%1.14%0.94% After fee waivers0.59%0.58%0.60%0.93%0.51%Ratio of net investment income after waiver to average netassets3.35%3.80%4.47%5.23%5.45%**Portfolio turnover rate****33%****37%****22%****28%****28%** **Amount is less than $0.01*
 

***Statement of Assets andLiabilities***
*As of November 30,2005***Assets** Bond Investments$2,405,393 Cash112,962 Interest receivalbe40,075 Receivables for Fund shares sold3,250 Receivables for advisor1,335  Total Assets$2,563,015  **Liabilities**      Payable for Fund sharesredeemed3,258 Distribution payable76 Accrued fees14 Other liabilities3,121  Total liabilities6,470  **Net Assets** Net Assets$2,556,545**Fundshares outstanding** **526,989**  **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without parvalue)2,641,447 Accumulated net realized loss(40,485) Unrealized net depreciation on investments(44,417)  Net Assets applicable to Fundshares $2,556,545  **Net Asset Value, Offering and Redemption priceper share****$4.85***November 30, 2005 Annual Report**(The accompanying notes are an integral part of these financialstatements)**5*
(Graphicomitted) 

***Sextant Short-Term BondFund***

***Statement ofOperations***
*For the year ended November 30,2005***Investment Income** Interest income$96,529 Other income53  Gross investmentincome$96,582  **Expenses** Investment adviser and administrationfees14,053 Filing and registration fees5,300 Custodian fees2,634 Audit fees2,492 Trustee fees1,800 Legal fees1,550 Insurance1,000 Chief compliance officerexpenses750 Printing and postage533 Total gross expenses30,112 Less adviser fees waived(13,091) Less custodian fees waived(2,634) Net expenses14,387  Net investment income82,195  **Net realized loss on investments** Proceeds from sales738,096 Less cost of securities sold (based onidentified cost)744,636  Realized net loss(6,540)    **Unrealized gain (loss) on investments** End of year(44,417) Beginning of year5,349 Decrease in unrealized gain for theyear(49,766)  Net realized and unrealized loss(56,306)  **Net increase in net assets resulting fromoperations****$25,889**
 

***Statement of Changes in Net Assets***
 *Year ended Nov. 30, 2005**Year ended Nov. 30, 2004***INCREASE (DECREASE) IN NET ASSETS*****From Operations*** Net investment income$82,195$90,916 Net realized loss on investments(6,540)(4,422) Net decrease in unrealizedappreciation(49,766)(57,383)  Net increase in assets25,88929,111 ***Dividends to shareownersfrom*** Net investment income(83,151)(90,916) ***From Fund sharetransactions*** Proceeds from sales ofshares570,038610,686 Value of shares issued inreinvestment of dividends81,91890,739  651,956701,425 Early redemption penaltiesretained39- Cost of shares redeemed(293,595)(643,510)  Net increase in assets358,40057,915**Total increase (decrease)in net assets****$301,138****($3,890)**  **NET ASSETS** Beginning of year2,255,4072,259,297 End ofYear$2,556,545$2,255,407  **Sharesof the Fund sold and redeemed** Number of shares sold115,834119,937 Number of shares issued in reinvestment ofdividends16,76518,013  132,699137,950 Number of sharesredeemed(59,815)(127,472)**Net increase in number ofshares outstanding****72,884****10,478**
*(The accompanyingnotes are an integral part of these financial statements)*
*6* *November 30, 2005 Annual Report*
(Graphic omitted) 

***SextantShort-Term Bond Fund***

******

***Discussion of Fund Performance (unaudited)***

***FISCAL YEAR 2005*****  For the fiscal year ending November 30, 2005, theSextant Short-Term Bond Fund provided a total return of 0.94%. The share pricemoved in a range of $4.84 to $4.97, a maximum variation of 2.6%. The Fund ranked238th of 408 funds in the Morningstar* “Short-term Bond” categoryforthe twelve months. At November 30, 2005, the Fund’s overall Morningstarcategory rating was 3-star, and “average” for returns and“average” for risk (308 funds in category). For the last five years,theFundearned4.16%annualized total return, ranking in the top 39% of 220 funds in its Morningstarcategory. For the last year, the Fund ranked in the top 70% of 408 funds andfor the last 10 years, the Fund ranked in the top 52% of 58 funds.

TheFund’s annual expense ratio remained virtually unchanged at 0.61%,reflecting management fee performance adjustments and the adviser’svoluntary capping of total expenses at 0.60% annually. Without the waivers ofalmost all the management fee and the custodian bank fees, annual expenses wouldhave been 1.25%. 
**Ratings Established****By Adviser****By Standard &Poor's****By Moody's InvestorServices**AAA54.2%46.5%50.3%AA0.0%3.7%3.7%A32.4%28.9%25.2%BBB7.4%3.6%7.4%Unrated0.0%11.3%7.4%Cash6.0%6.0%6.0%
***FACTORS AFFECTING PAST PERFORMANCE***Overthe last twelve months, the Federal Reserve steadily raised the Federal Fundsrate from 2% to 4% in “measured” response to a strong, growingeconomy. Credit spreads between high and low quality bonds narrowed slightly dueto strong profits, which benefit weak companies more than financially solidcompanies. The Fund remained overweighted in investment grade corporate notesand added positions in government-sponsored agency bonds.

Risingshort-term interest rates reduced the Fund’s total return, as bond pricesdeclined. Expense fee waivers helped performance, and are expected to continuein 2006. The table summarizes portfolio holdings by rating quality at November30, 2005.

***LOOKINGFORWARD*** The US economy is strong and expanding,although higher interest rates and energy costs are slowing growth. For 2006, weexpect corporate profits to increase 7% to 13%. The threat of rising USinflation will keep upward pressure on short-term rates for another six totwelve months, as the Federal Reserve continues to increase short-term rates to5% - probably in slower steps. We do not expect a prolonged yield curveinversion or a recession.  The Fund is in a good position to takeadvantage of the highest short-term rates since 2001. We plan to increaseportfolio weighting in corporate bonds and reduce exposure to US Treasury andgovernment agency positions. Like 2005, Sextant Short-Term Bond Fund is likelyto generate a positive return for 2006 despite an increase in short-term rates.Continuing economic globalization limits the impact of these forces on domesticinflation. This portends a year of greater real returns for the Fund.

***MANAGEMENT FEECALCULATIONS*** The Sextant Short-Term Bond Fundcalculates part of its management fee based on a comparison of the Fund’sreturn to the average return of the Morningstar category Short-Term Bond. TheFund’s 12-month return (+0.94%) was within one percent of the Morningstaraverage (+1.34%) at month-end November 30, 2005. Therefore, no performanceadjustment was made to the basic 0.60% annual management fee for the month ofDecember 2005. The management fee is almost entirely waived due to theadviser’s voluntary cap on Fund expenses.

***COMPARISON TO INDEX*** Comparison ofany mutual fund to a market index must be made bearing in mind that the Index isunmanaged, and expense-free. The graph below compares $10,000 invested in theFund on November 30, 1995 to a similar amount invested in the Salomon BrothersGov/Corp Investment Grade Bond Index for maturities between one and three years.The graph shows that a $10,000 investment made on November 30, 1995 would haverisen to $15,789 in the Fund and $16,498 in the Index. 

***SextantShort-Term Bond Fund vs. Salomon Gov/Corp. 1-3 Year Index (unaudited)***

(Graphomitted)

Fund Average Annual ReturnsOne Year 0.96%Five Year 4.16%Ten Year 4.68%

**Morningstar, Inc. is an independent fund      performance monitor. Rankings are determined monthly from total returns      by Morningstar, by category as determined by Morningstar. The overall Morningstar      rating for a fund is derived from a weighted average of the performance      figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar      Rating. The average total return for a category is determined by Saturna      Capital, utilizing the Morningstar database. Results are shown for twelve      months because theSextant Funds’ performance fees are based on the same period.(For further information, see Morningstar disclosures, page 32).*
*November 30,2005 Annual Report* *7*
(Graphicomitted) 

***Sextant Short-Term BondFund***

***Expenses(unaudited)***

As a Sextant Short-Term Bond Fundshareowner, you incur ongoing costs, including management fees and other fundexpenses. Unlike many mutual funds, you do not incur sales charges (loads) onpurchase payments, reinvested dividends or other distributions. Nor do you incurredemption fees, exchange fees or fees related to Individual RetirementAccounts. This example is intended to help you understand your ongoing costs (indollars) of investing in the Fund and to compare these costs with the ongoingcosts of investing in other mutual funds.

***Example*** The following example isbased on an investment of $1,000 invested at the beginning of the semi-annualperiod and held for six months (Wednesday, June 1, 2005 to Wednesday, November30, 2005).

***ActualExpenses*** The first line provides information aboutactual account values and expenses. You may use the information in this line,together with the amount you have invested, to estimate the expenses you havepaid over the period. Simply divide your account value by $1,000 (for example, a$8,600 account value divided by $1,000 = 8.6), then multiply the result by thenumber in the first line under the heading entitled “Expenses Paid DuringYear” to estimate the expenses you paid on your account during this fiscalyear. The fund also charges for these extra services rendered on request, whichyou may need to add to determine your total expenses: $10 per checkbook, $25 perbank wire, $15 per overnight courier delivery; 2% penalty for redemptions within30 days.

***Hypothetical Example ForComparison Purposes*** The second line providesinformation about hypothetical account values and hypothetical expenses based onthe Fund’s actual expense ratio (based on the last six months) and anassumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may notbe used to estimate the actual ending balance or expenses you paid for the year.You may use this information to compare ongoing costs of investing in the Fundand other funds. To do so, compare this 5% hypothetical example with the 5%hypothetical examples that appear in the shareowner reports of other funds. Youmay wish to add other fees that are not included in the expenses shown in thetable, such as IRA fees (there are no fees on Saturna Capital IRAs, ESAs orHSAs), and charges for extra services such as check writing and bankwires.

Please note that the expenses shown are meant to highlight yourongoing costs only and do not reflect any transactional costs, such as salescharges (loads), redemption fees or exchange fees, or possible early redemptionpenalties. Therefore, the second line is useful in comparing ongoing costs only,and may not help you determine the relative total costs of owning differentfunds. 
**Short-Term Bond Fund****Beginning Account Value(Wednesday, June 1, 2005)****Ending Account Value (Wednesday,November 30, 2005)****Expenses Paid DuringPeriod***Actual (0.94%   return afterexpenses)$1,000.00 $1,009.40$2.92Hypothetical (5% return beforeexpenses)$1,000.00$1,022.16$2.94
*Expenses are equal to the SextantShort-Term Bond Fund’s annualized expense ratio of 0.58% (based on themost recent semi-annual period of June 1, 2005 through November 30, 2005),multiplied by the average account value of $1,004.70 over the period multipliedby 183/365 (to reflect the one-half year period).
*8**November 30, 2005 Annual Report* 
(Graphic omitted) 

***Sextant Bond IncomeFund***

***Investments***
**Rating*****Issuer****Coupon/Maturity****FaceAmount****Market Value****Percentage**    ***Automotive***BBBAuto Zone Inc.5.50% due11/15/2015$95,000$84,6472.8%    ***Banking***A+Chase Manhattan7.125% due6/15/200950,00052,9341.7%AA-Citicorp7.25% due 10/15/201150,00054,9751.8%A-ComericaBank7.125% due 12/1/201350,00052,3361.7%AA-NorwestFinancial6.85% due 7/15/200950,00052,8661.7%  SUBTOTAL200,000213,1116.9%    ***Building Products***BBB+MascoCorporation 7.125% due 8/15/201360,00065,8812.1%    ***Chemicals***AAir Products & Chemicals8.75% due4/15/202150,00065,4092.1%    ***Diversified FinancialServices***AAAGeneralElectric Capital Corp.8.125% due 5/15/201260,00069,5522.3%    ***Electric Utilities***A-CommonwealthEdison7.50% due 7/1/201350,00055,4471.8%BBB+Sempra Energy Corp.7.95% due 3/1/201050,00054,2631.8%  SUBTOTAL100,000109,7103.6%    ***Electronics***BBB+Koninlijke Phillips Electronics7.25% due8/15/201350,00055,1731.8%    ***Food***BBB+Conagra7.875% ue 9/15/201050,00055,0721.8%A+Hershey FoodsCo.6.95% 8/15/201250,00054,8681.8%BBB+HJ Heinz6.00 due 3/15/201275,00077,6422.5%  SUBTOTAL175,000187,5826.1%    ***Insurance***A+Allstate7.50% due 6/15/201350,00056,3691.8%A+ProgressiveCorp.7.00% due 10/1/201375,00083,3162.7%A-XL Capital(Europe)6.50% due 1/15/201290,00093,7053.1%  SUBTOTAL215,000233,3907.6%    ***Investment Finance***ABear StearnsCo.3.50% due 6/27/2008 5.00% due 6/27/2013 8.00% due6/27/2018154,000141,8534.7%A+Morgan Stanley Dean Witter6.75% due10/15/201350,00053,1401.7%AAPaine Webber Group7.625% due2/15/201450,00057,7131.9%  SUBTOTAL254,000252,7068.3%  (Continued on nextpage)
*Ratings are the lesser of S&P, Fitch orMoody's (unaudited)
*November 30, 2005Annual Report**9*
(Graphicomitted) 

***Sextant Bond IncomeFund***

***Investments***
**Rating*****Issuer****Coupon/Maturity****FaceAmount****Market Value****Percentage**       ***Machinery***ACaterpillarInc.9.375% due 8/15/2011$40,000$47,8061.6%ADover Corp6.25% due6/1/200870,00072,2972.4%  SUBTOTAL110,000120,1034.0%    ***Medical Supplies***A+Becton Dickinson7.15% due 10/1/200940,00043,2591.4%    ***Oil & Gas***ABaker Hughes Inc.6.00% due 2/15/200970,00071,2492.3%AA-Texaco8.625% due6/30/201040,00045,5431.5%  SUBTOTAL110,000116,7923.8%    ***Real Estate***BBB+Archstone Smith Opr Trust5.625% due8/15/201450,00050,4501.7%    ***Retailing***ADayton Hudson (Target Stores)10.00% due1/1/201150,00060,6852.0%ALowe'sCompanies8.25% due 6/1/201050,00056,9031.9%BBBMay Department StoresCompany8.00% due 7/15/201250,00056,9301.9%AAWal-Mart Stores7.25% due6/1/201345,00051,2341.7%  SUBTOTAL195,000225,7527.5%    ***Telecommunications***A+GTE6.90% due 11/1/200850,00051,7041.7%    ***Transportation***BBB+Southwest Airlines6.50% due 3/1/201275,00077,9692.5%BBB-US Freightways Corp.8.50% due4/25/201050,00054,4811.8%  SUBTOTAL125,000132,4504.3%    ***U.S. Government***AAAFederal Farm Credit Bank5.09% due2/17/2015120,000115,8863.8%AAAFederal Home Loan Bank5.55% due 4/13/2015100,00098,3063.2%AAAFederal HomeLoan Mortgage5.00% due 8/26/2009 6.25% due 8/26/2014 8.00%due 8/26/2019100,00098,3263.2%AAAFederal National Mtge. Assoc.5.00% due4/10/2015100,00096,4103.2%AAAU.S. Treasury Note5.50% due 2/15/2008125,000127,8914.2%AAAU.S. Treasury Note4.125% due5/15/2015100,00096,8443.2%AAAU.S. Treasury Note4.00% due4/15/2010250,000245,7428.1%  SUBTOTAL895,000879,40528.9%    Total Investments(Cost =$2,882,996)$2,834,000$2,957,07696.9% Other Assets (net ofliabilities)93,0293.1% **TotalNet Assets** **$3,050,105****100.0%**
*Ratings arethe lesser of S&P, Fitch or Moody's (unaudited)
*10**November 30, 2005 Annual Report*
(Graphic omitted) 

***Sextant Bond IncomeFund***

***Financial Highlights***
 **Year ended November30,***Selected data per share ofcapital stock outstanding throughout the year:***2005****2004****2003****2002****2001****Netasset value at beginning of year****$5.06****$5.07****$4.97****$4.81****$4.56** Income from investment operations Net investment income0.210.220.220.260.30 Net gains or losses on securities (bothrealized and unrealized)(0.14)(0.01)0.100.160.25Total frominvestment operations0.070.210.320.420.55 *Less distributions* Dividends (from net investmentincome)(0.21)(0.22)(0.22)(0.26)(0.30)Total distributions(0.21)(0.22)(0.22)(0.26)(0.30)Paid incapital from early redemption penalties*0.00---- **Net asset value at end ofyear****$4.92****$5.06****$5.07****$4.97****$4.81****Total return****1.40%****4.26%****6.52%****9.02%****12.40%** **Ratios/supplemental data**Net assets ($000), end of year$3,050$2,643$2,272$2,105$1,965**Raio of expenses to average net assets** Before fee waivers0.97%0.89%1.15%1.06%1.06% After fee waivers0.94%0.87%0.97%0.72%0.34%Ratio of net investment income after waiver to average netassets4.26%4.7%4.29%5.40%6.71%**Portfolio turnover rate****4%****0%****0%****29%****30%** **Amount is less than $0.01*
 

***Statement of Assets andLiabilities***
*As of November 30,2005***Assets** Bond Investments (Cost$2,882,996)$2,957,076 Cash48,012 Interest receivable46,701 Receivable for Fund shares sold77 Insurance reserve premium400  Total Assets$3,052,266  **Liabilities**      Distribution payable82 Accrued advisory fee1,511 Accrued chief compliance officer fees373 Other liabilities195  Total liabilities2,161  **Net Assets****$3,050,105****Fund shares outstanding** **620,267**  **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without parvalue)2,998,149 Accumulated net realized loss(22,124) Unrealized net appreciation on investments74,080  Net Assets applicable to Fundshares $3,050,105  **Net Asset Value, Offering and Redemption priceper share****$4.92***November 30, 2005 Annual Report**(The accompanying notes are an integral part of these financialstatements)**11*
(Graphicomitted) 

***Sextant Bond IncomeFund***

***Statement ofOperations***
*For the year ended November 30,2005***Investment Income** Interest income$154,252  Gross investmentincome$154,252  **Expenses** Investment adviser and administration fees12,864 Filing and registration fees5,500 Audit fees2,800 Chief compliance officer fees2,000 Insurance1,750 Legal fees1,200 Trustee fees1,100 Custodian fees891 Printing and postage501 Otherexpenses225  Total gross expenses28,831 Less custodian fees waived(891) Net expenses27,940  Net investment income126,312  **Net realized gain on investments** Proceeds from sales106,937 Less cost of securities sold (based on identifiedcost)106,111  Realized net gain826    **Unrealized gain (loss) on investments** End of year74,080 Beginning of year160,528 Decrease in unrealized gain for the year(86,448)  Net realized and unrealized loss(85,622)  **Net increase in net assets resulting fromoperations****$40,690**
 

***Statement of Changes in Net Assets***
 *Year ended Nov. 30, 2005**Year ended Nov. 30, 2004***INCREASE (DECREASE) IN NET ASSETS*****From Operations*** Net investment income$126,312$111,643 Net realized gain on investments826- Net decrease in unrealizedappreciation(86,448)(8,589)  Net increase in assets40,690103,054 ***Dividends to shareownersfrom*** Net investment income(126,361)(111,643) ***FromFund share transactions*** Proceeds from sales of shares787,201418,675 Value of shares issued in reinvestment ofdividends124,959106,570  912,160525,245 Early redemption penaltiesretained12- Cost of shares redeemed(418,996)(146,179)  Net increase in assets493,176379,066**Total increase (decrease)in net assets****$407,505****$370,477**  **NET ASSETS** Beginning of year2,642,6002,272,123 End ofYear$3,050,105$2,642,600  **Sharesof the Fund sold and redeemed** Number of shares sold155,84482,699 Number of shares issued in reinvestment ofdividends24,89420,985  180,738103,684 Number of sharesredeemed(83,147)(29,190)**Net increase in number ofshares outstanding****97,591****74,494**
 
*12* *November 30, 2005 Annual Report*
(Graphic omitted) 

***Sextant Bond IncomeFund***

***Discussion of FundPerformance***

***FISCALYEAR 2005***For the fiscal year ending November 30,2005, the Sextant Bond Income Fund returned 1.40%. The Fund was 56th of the 71funds in the Morningstar* “Long-term Bond” category for the twelvemonths. For the last five years, the Fund earned 6.69% annualized total return,ranking in the top 48% of 41 funds in its Morningstar category. For the lastyear, the Fund ranked in the top 90% of 71 funds and for the last 10 years, theFund ranked in the top 16% of 21 funds. AtNovember30,2005, the Fund’s overall Morningstar category rating was 2-star, and“average” for returns and “average” for risk (53 fundsin category).TheFund’s most recent thirty-day SECyield is 5.28% up from 3.73%, last year. 
**RatingsEstablished****ByAdviser****By Standard &Poor's****By Moody's InvestorServices**AAA31.1%19.8%31.1%AA8.6%6.8%12.1%A36.5%45.2%33.0%BBB20.7%13.8%20.7%Unrated0.0%11.3%0.0%Cash3.1%3.1%3.1%
***FACTORSAFFECTING PAST PERFORMANCE*** The majority of theFund’s recent performance comes from an average portfolio maturity thatwas less than its Morningstar “Long-term Bond Category” during anextended period of low long-term rates. While short-term rates have risensubstantially, long-term rates have held steady or even fallen. This yield curveflattening reduced total returns. US Treasury notes and government-sponsoredagencies generally outperformed similar maturity high-grade corporates.Performance was helped with recent additions of US Treasury notes and agencies.While early in reducing the average maturity, the Fund is now well positioned toreinvest in longer paper as long-term rates move higher in 2006 and the Fundextends the average maturity. 

The table (right) provides a summary of portfolioholdings by bond quality ratings as of November 30, 2005.

***LOOKING FORWARD*** We expect the USeconomy to grow another 3% in 2006, and corporate profits to increase 7% to 13%.The threat of rising US inflation will keep upward pressure on short-term ratesfor another six to twelve months. We expect the Federal Reserve to continue toincrease short-term rates to 5% and the US Treasury ten-year note yield to trendtoward the 5.25% level. We do not expect a prolonged yield curve inversion or arecession. We will increase purchases of investment-grade, corporate debt asopportunities allow. Despite our 2006 forecast for a modest increase inlong-term rates, we still expect a positive return for Bond Income Fund for theyear.

***MANAGEMENT FEECALCULATIONS*** The Sextant Bond Income Fund calculatesits management fee based on a comparison of the Fund’s return to thereturn of Morningstar’s “Long-term Bond” category. TheFund’s +1.40% 12-month return was below that of the index (+2.61%) onNovember 30, 2005. Therefore, the base 0.60% management fee was decreased by0.10%, to 0.50%, for the month of December 2005 because the Fund underperformedits benchmark index by more than 1% but less than 2%. 

***COMPARISON TO INDEX*** Comparison ofany mutual fund to a market index must be made bearing in mind that the index isunmanaged, and expense-free. Conversely, the fund will (1) be actively managed,(2) have an objective other than mirroring the index, such as limiting risk, (3)bear transaction and other costs, (4) stand ready to buy and sell its securitiesto shareowners on a daily basis, and (5) provide a wide range of services. Thegraph below compares $10,000 invested in the Fund on November 30, 1995 to asimilar amount invested in The Salomon Brothers Broad Investment-Grade BondIndex. The graph shows that the investment on November 30, 1995 would have risento $17,766 in the Fund and $18,303 in the Index.

*SextantBond Income Fund vs. Saloman Broad Investment Grade Bond Index (unaudited)*(Graphomitted)

Fund Average Annual Returns One Year 1.49% Five Year6.71% Ten Year 5.93%

**Morningstar, Inc. is an independent fund      performance monitor. Rankings are determined monthly from total returns      by Morningstar, by category as determined by Morningstar. The overall Morningstar      rating for a fund is derived from a weighted average of the performance      figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar      Rating. The average total return for a category is determined by Saturna      Capital, utilizing the Morningstar database. Results are shown for twelve      months because theSextant Funds’ performance fees are based on the same period.(For further information, see Morningstar disclosures, page 32).*
*November 30, 2005 Annual Report* *7*
(Graphic omitted) 

***Sextant Bond IncomeFund***

***Expenses(unaudited)***

As a Sextant Bond Income Fundshareowner, you incur ongoing costs, including management fees and other fundexpenses. Unlike many mutual funds, you do not incur sales charges (loads) onpurchase payments, reinvested dividends or other distributions. Nor do you incurredemption fees, exchange fees or fees related to Individual RetirementAccounts. This example is intended to help you understand your ongoing costs (indollars) of investing in the Fund and to compare these costs with the ongoingcosts of investing in other mutual funds.

***Example*** The following example isbased on an investment of $1,000 invested at the beginning of the semi-annualperiod and held for six months (Wednesday, June 1, 2005 to Wednesday, November30, 2005).

***ActualExpenses*** The first line provides information aboutactual account values and expenses. You may use the information in this line,together with the amount you have invested, to estimate the expenses you havepaid over the period. Simply divide your account value by $1,000 (for example, a$8,600 account value divided by $1,000 = 8.6), then multiply the result by thenumber in the first line under the heading entitled “Expenses Paid DuringYear” to estimate the expenses you paid on your account during this fiscalyear. The fund also charges for these extra services rendered on request, whichyou may need to add to determine your total expenses: $10 per checkbook, $25 perbank wire, $15 per overnight courier delivery; 2% penalty for redemptions within30 days.

***Hypothetical Example ForComparison Purposes*** The second line providesinformation about hypothetical account values and hypothetical expenses based onthe Fund’s actual expense ratio (based on the last six months) and anassumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may notbe used to estimate the actual ending balance or expenses you paid for the year.You may use this information to compare ongoing costs of investing in the Fundand other funds. To do so, compare this 5% hypothetical example with the 5%hypothetical examples that appear in the shareowner reports of other funds. Youmay wish to add other fees that are not included in the expenses shown in thetable, such as IRA fees (there are no fees on Saturna Capital IRAs, ESAs orHSAs), and charges for extra services such as check writing and bankwires.

Please note that the expenses shown are meant to highlight yourongoing costs only and do not reflect any transactional costs, such as salescharges (loads), redemption fees or exchange fees, or possible early redemptionpenalties. Therefore, the second line is useful in comparing ongoing costs only,and may not help you determine the relative total costs of owning differentfunds. 
**Bond Income Fund****Beginning Account Value (Wednesday,June 1, 2005)****Ending Account Value (Wednesday, November 30, 2005)****Expenses Paid During Period***Actual (1.40%return after expenses)$1,000.00$1,014.00$4.95Hypothetical (5% return beforeexpenses)$1,000.00$1,020.16$4.96
*Expenses are equal to the SextantBond Income Fund’s annualized expense ratio of 0.98% (based on the mostrecent semi-annual period of June 1, 2005 through November 30, 2005), multipliedby the average account value of $1,007.00 over the period multiplied by 183/365(to reflect the one-half year period).
*14**November 30,2005 Annual Report* 
 

(Graphicomitted) 

***Sextant GrowthFund***

***Investments***
***Issue******Number of Shares******Tax Cost******Market Value******Percentage***CommonStocks         ***Banking***Frontier Financial6,000$90,207$194,2802.2%WashingtonBanking Company2,00029,08035,6800.4%Washington Mutual6,75044,124278,0323.1% SUBTOTAL163,411507,9925.7% ***Computers***3Com16,00096,57657,7600.6%AdobeSystems*9,60050,490313,0563.5%
Apple Computers
11,00097,170746,0208.3%Hewlett-Packard5,500113,000163,1851.8%Intuit*4,000175,198214,2802.4%Oracle*8,00028,059100,8001.1%Phoenix Technologies Ltd.*3,06229,14819,3820.2%SymbolTechnologies928411,0510.0% SUBTOTAL590,4821,615,53417.9% ***Construction***KBHomes2,000129,138139,5401.6%Lowe's Companies4,000135,141269,9203.0%Weyerheuser3,000158,837198,9302.2 SUBTOTAL423,116608,3906.8%     ***Electronics***Advanced MicroDevices10,00041,708261,8002.9%Agilent Technologies*6,000155,834213,9602.4%HarmanInternational Industries1,500114,354146,2501.6% SUBTOTAL311,896622,0106.9%     ***Food***Performance FoodGroup*3,00096,91785,2000.9%PepsiCo2,000102,111118,4001.3% SUBTOTAL199,028203,6002.2%     ***Hotels & Motels***Red LionHotels*16,000105,504141,6001.6% ***Investments***Chubb2,000168,940193,6802.2%Schwab(Charles)20,4159,117311,3293.5% SUBTOTAL178,057505,0095.7% ***Machinery***Regal-Beloit4,000104,006141,1601.6%
*(Continuedon next page)*
*November 30, 2005 Annual Report* *15*
 

 

(Graphicomitted) 

***Sextant Growth Fund***

***Investments***
***Issue******Number of Shares******TaxCost******Market Value******Percentage***CommonStocks     ***Medical***Affymetrix*4,000$109,131$196,9602.2%Amgen*2,64034,598213,6552.4%BarrLaboratories*4,500159,489258,0752.9%Bristol-Myers Squibb4,500121,89297,1551.1%CaremarkRx*4,00092,593205,560
2.3%
Genentech*1,200104,376114,7441.3%LigandPharmaceuticals*5,00056,43055,5000.6%Lilly (Eli)2,000165,241101,0001.1%Pharmaceutical Product Development7,50067,174437,1754.9%VCAAntech*4,00096,160112,1601.2% SUBTOTAL1,007,0841,791,98420.0% ***Metal Ores***Alcoa3,000104,23382,2300.9%Phelps Dodge1,33076,218180,4412.0% SUBTOTAL180,451262,6712.9% ***Oil & Gas Production***Noble Drilling3,00054,457216,2102.4% ***Publishing***Wiley (John) & Sons, Class A3,40074,233139,2661.5% ***Retail***Amazon.com*2,500103,725121,1501.3%Bed Bath & Beyond*3,000100,051127,8001.4%Build-A-BearWorkshop*7,000177,548199,5002.2% SUBTOTAL381,324448,4504.9% ***Telecommunication***Trimble Navigation*4,500106,214146,6101.6% ***Transportation***Norfolk Southern3,000120,030132,7201.5% ***Utility***FPL Group5,000158,289211,9502.4%IDA6,000159,539171,3601.9%SempraEnergy3,000116,394131,8501.5% SUBTOTAL434,222515,1605.8% Total Investments$4,433,515$7,998,36689.0%Other Assets (net ofliabilities)1,008,03011.0%**Total NetAssets****$9,006,396****100.0%***16**November 30,2005 Annual Report* 
 

(Graphic omitted) 

***Sextant GrowthFund***

******

***Financial Highlights***
 **Year ended November30,***Selected data per share ofcapital stock outstanding throughout the year:***2005****2004****2003****2002****2001****Net asset value at beginning of year****$14.20****$12.91****$10.64****$11.90****$13.16** Income from investment operations Net investment income(0.02)0.01(0.04)(0.05)(0.02) Net gains or losses on securities (both realized andunrealized)2.961.452.31(1.21)(1.24)Total frominvestment operations2.941.462.27(1.26)(1.26) *Less distributions* Dividends (from net investmentincome)*(0.00)(0.01)--- Distributions (from capital gains)(0.03)(0.16)---Total distributions(0.03)(0.17)---Paid in capital from earlyredemption penalties*0.00---- **Net asset value at end ofyear****$17.11****$14.20****$12.91****$10.64****$11.90****Total return****20.76%****11.35%****21.31%****(10.51)%****(9.57)%** **Ratios/supplemental data**Net assets ($000), end of year$9,006$5,331$4,732$3,373$3,792**Raio of expenses to average net assets** Before fee waivers1.28%0.80%1.20%1.17%0.84% After fee waivers1.24%0.78%1.14%1.11%0.78%Ratio of net investment income after waiver to average netassets(0.17)%0.12%(0.40)%(0.48)%(0.18)%**Portfolio turnover rate****4%****8%****12%****15%****8%** **Amount is less than $0.01*
 

***Statement of Assets andLiabilities***
*As of November 30,2005***Assets** Investments (Cost $ 4,433,515)$7,998,366 Cash998,733 Interest receivable13,604 Receivable from Fund shares sold1,634 Insurance reserve premium1,214  Total Assets$9,013,551  **Liabilities**      Payable for Fund sharesredeemed155 Distribution payable319 Due to affiliates4,796 Accrued expenses1,885  Total liabilities7,155  **Net Assets** Net Assets$9,006,396**Fund shares outstanding** **526,313**  **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without parvalue)5,441,545 Unrealized net appreciation on investments3,564,851  Net Assets applicable to Fundshares $9,006,396  **Net Asset Value, Offering and Redemption priceper share****$17.11***November 30, 2005 Annual Report**(The accompanying notes are an integral part of these financialstatements)**17*
(Graphicomitted) 

***Sextant Growth Fund***

***Statement of Operations***
*For the year ended November 30,2005***Investment Income** Dividend income$73,669 Other income125  Gross investmentincome$73,794  **Expenses** Investment adviser and administrationfees56,759 Audit fees6,900 Filing and registration fees6,800 Chief compliance officerexpenses3,500 Insurance3,350 Trusteefees3,100 Custodian fees3,100 Legal fees2,277 Printing and postage2,200 Other fees310 Total gross expenses88,296 Less custodian fees waived(3,100) Net expenses85,196  Net investment loss(11,402)  **Net realized gain on investments** Proceeds from sales254,738 Less cost of securities sold (based onidentified cost)242,264  Realized net gain12,474    **Unrealized gain (loss) on investments** End of year3,564,851 Beginning of year2,070,566 Increase in unrealized gain for theyear1,494,285  Net realized and unrealized loss1,506,759  **Net increase in net assets resulting fromoperations****$1,495,357**
 

***Statement of Changes in Net Assets***
 *Year ended Nov. 30, 2005**Year ended Nov. 30, 2004***INCREASE (DECREASE) IN NET ASSETS*****From Operations*** Net investment income (loss)($11,402)$5,799 Net realizedgain on investments12,47491,659 Net increase inunrealized appreciation1,494,285454,857  Net increase in assets1,495,357552,315 ***Dividends to shareowners from*** Net investment income(2,289)(4,622) Capital gains distributions(12,474)(60,280)  (14,763)(64,902) ***FromFund share transactions*** Proceeds from sales of shares2,709,2601,129,561 Value of sharesissued in reinvestment of dividends14,44464,879  2,723,7041,194,440 Early redemptionpenalties retained53- Cost of sharesredeemed(528,970)(1,082,914)  Net increase in assets2,194,787111,526**Total increase (decrease)in net assets****$3,675,381****$598,939**  **NET ASSETS** Beginning of year5,331,0154,732,076 End ofYear$9,006,396$5,331,015    Undistributed net investment income-1,177  **Shares of the Fund sold and redeemed** Number of shares sold186,54087,757 Number of shares issued in reinvestment ofdividends8444,572  187,38492,329 Number of sharesredeemed(36,600)(83,204)**Net increase in number ofshares outstanding****150,784****9,125**
*(The accompanying notes are anintegral part of these financial statements)*
*18* *November 30, 2005 Annual Report*
(Graphic omitted) 

***Sextant GrowthFund***

******

***Discussion of Fund Performance (unaudited)***

***FISCAL YEAR 2005*****  For the fiscal year ending November 30, 2005, theSextant Growth Fund returned an outstanding 20.76%, well above the standardmarket measures. For the fiscal year, the broad S&P 500 Index gained 8.44%,while the smaller-company NASDAQ Composite Index increased 7.28%. For the fiscalyear, the Fund ranked in the top 7% of the 929 funds in the Morningstar* Mid-capGrowth category. At November 30, 2005, the Fund’s overall Morningstarcategory rating was 4-star, and “above average” for returns and“below average” for risk (800 funds in category).
***Industries***Medical20.0%Computers17.9%Cash11.0%Electronics6.9%Construction6.8%Utilities5.8%Banking5.7%Investments5.7%Retail4.9%Metal Ores2.9%Oil & GasProduction2.4%Food2.2%Hotels &Motels1.6%Machinery1.6%Telecommunications1.6%Publishing1.5%Transportation1.5%
***FACTORS AFFECTING PAST PERFORMANCE***TheU.S. economy in 2005 overcame concerns and grew steadily. As illustrated in thetable, our portfolio is heavily weighted with medical (largest holdingsPharmaceutical Product Development and Barr Laboratories up 41% and 46%,respectively) and computer (largest holding Apple Computer up 102%) issues. Ourconservative style meant that too much of the portfolio remained in cash, whichsomewhat reduced results.

The Fund seeks long-term growth throughinvestment in common stocks of U.S. domiciled companies. It generally follows avalue investment approach, favoring companies with good fundamentals andrelatively low price/earnings and price/book ratios. Even so, our stockselections are heavier than similar funds in the Information Economy, andlighter in the Manufacturing Economy. Income is not a consideration inportfolio selection, but we favor companies that institute or increase dividendpayouts. Our low portfolio turnover helped minimize the year-end capital gainsdistribution again this year.

***LOOKINGFORWARD***The volatility, risks and returns of thestock market will continue. The poor stock market performances of 2000 through2002 were reversed in 2003 through 2005 as stocks again provided investors withstrong investment returns. We are expecting the good markets of late 2005 tocontinue into 2006, but more modestly as higher interest rates brake some keyindustries. A long-term approach is the best opportunity to prosper: for thelast ten years, the Fund provided a 11.22% average annualized total return andranks in the top 14% of 212 funds in its Morningstar category. (For the lastfive years, the Fund ranked in the top 18% of 594 funds).

***MANAGEMENT FEECALCULATIONS*** The Sextant Growth Fund calculates partof its management fee based on a comparison of the Fund’s return to theaverage return in Morningstar's “Growth” prospectus objective funds.At November 30, 2005, the one-year return for this peer group was +10.08%.Because the Fund's excellent 12-month return outperformed this average by morethan 4% at November 30, 2005, the adviser earned the maximum annual rate 0.30%bonus for the month of December 2005. Note that the help increased assets gaveto lowering the expense ratio was overshadowed by bonus payments to the adviser,increasing the overall expense ratio to 1.24% from 0.78% the prioryear.

***COMPARISON TOINDEX*** The line graph compares Sextant Growth Fund'sperformance to that of a broad-based stock market index, the Standard &Poor's 500 Index. Comparison of any mutual fund to a market index must be madebearing in mind that the index is unmanaged, and expense-free. Conversely, thefund will (1) be actively managed, (2) have an objective other than mirroringthe index, such as limiting risk, (3) bear various operational costs, (4) standready to buy and sell its securities to shareowners on a daily basis, and (5)provide a wide range of services. The graph below compares $10,000 invested inthe Fund on November 30, 1995 (ten years ago), compared to a similar amountinvested in Standard & Poor's 500 Index. The graph shows that the investmentin the Fund would have risen to $28,955 versus $24,287 in the Index. 

***Sextant GrowthFund vs. S&P 500 Total Return Index(unaudited)***

      (Graphic omitted)

Fund Average Annual ReturnsOne Year 20.78%Five Year5.68%Ten Year 11.22%

**Morningstar, Inc. is an independent fund      performance monitor. Rankings are determined monthly from total returns      by Morningstar, by category as determined by Morningstar. The overall Morningstar      rating for a fund is derived from a weighted average of the performance      figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar      Rating. The average total return for a category is determined by Saturna      Capital, utilizing the Morningstar database. Results are shown for twelve      months because theSextant Funds’ performance fees are based on the same period.(For further information, see Morningstar disclosures, page 32).*
*November 30, 2005 Annual Report* *19*
(Graphic omitted) 

***Sextant GrowthFund***

***Expenses(unaudited)***

As a Sextant Growth Fundshareowner, you incur ongoing costs, including management fees and other fundexpenses. Unlike many mutual funds, you do not incur sales charges (loads) onpurchase payments, reinvested dividends or other distributions. Nor do you incurredemption fees, exchange fees or fees related to Individual RetirementAccounts. This example is intended to help you understand your ongoing costs (indollars) of investing in the Fund and to compare these costs with the ongoingcosts of investing in other mutual funds.

***Example*** The following example isbased on an investment of $1,000 invested at the beginning of the semi-annualperiod and held for six months (Wednesday, June 1, 2005 to Wednesday, November30, 2005).

***ActualExpenses*** The first line provides information aboutactual account values and expenses. You may use the information in this line,together with the amount you have invested, to estimate the expenses you havepaid over the period. Simply divide your account value by $1,000 (for example, a$8,600 account value divided by $1,000 = 8.6), then multiply the result by thenumber in the first line under the heading entitled “Expenses Paid DuringYear” to estimate the expenses you paid on your account during this fiscalyear. The fund also charges for these extra services rendered on request, whichyou may need to add to determine your total expenses: $10 per checkbook, $25 perbank wire, $15 per overnight courier delivery; 2% penalty for redemptions within30 days.

***Hypothetical Example ForComparison Purposes*** The second line providesinformation about hypothetical account values and hypothetical expenses based onthe Fund’s actual expense ratio (based on the last six months) and anassumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may notbe used to estimate the actual ending balance or expenses you paid for the year.You may use this information to compare ongoing costs of investing in the Fundand other funds. To do so, compare this 5% hypothetical example with the 5%hypothetical examples that appear in the shareowner reports of other funds. Youmay wish to add other fees that are not included in the expenses shown in thetable, such as IRA fees (there are no fees on Saturna Capital IRAs, ESAs orHSAs), and charges for extra services such as check writing and bankwires.

Please note that the expenses shown are meant to highlight yourongoing costs only and do not reflect any transactional costs, such as salescharges (loads), redemption fees or exchange fees, or possible early redemptionpenalties. Therefore, the second line is useful in comparing ongoing costs only,and may not help you determine the relative total costs of owning differentfunds. 
**Short-Term BondFund****Beginning Account Value (Wednesday, June 1,2005)****Ending Account Value (Wednesday, November 30, 2005)****Expenses Paid During Period***Actual (20.76% return after expenses)$1,000.00$1,207.60$7.08Hypothetical (5% return beforeexpenses)$1,000.00$1,018.65$6.54
*Expenses are equal to the SextantGrowth Fund’s annualized expense ratio of 1.28% (based on the most recentsemi-annual period of June 1, 2005 through November 30, 2005), multiplied bytheaverage account value of $1,103.80 over the period multiplied by 183/365 (toreflect the one-half year period).
*20**November 30,2005 Annual Report* 
 

(Graphic omitted) 

***Sextant InternationalFund***

***Investments***
***Issue******Number of Shares******Tax Cost******Market Value******Country******Percentage***CommonStocks           ***Aircraft***Embraer AircraftADR1,713$38,169$64,597Brazil1.8% ***Automotive***Nissan Motor ADR2,00030,08541,020Japan1.1% ***Banking***Australia & New Zealand Banking ADS1,00084,50088,050Australia2.4%AXA ADS3,00059,78490,120France2.5%Banco Bilbao Vizcaya ADS3,80039,18266,994Spain1.8%ING Groep ADS2,20054,95471,148Netherlands1.9%Toronto-Dominion Bank1,40018,152972,576Canada2.0% SUBTOTAL256,579388,88810.6% **Building Materials**C R H plc ADR2,00023,07553,420Ireland1.5%Hanson plc ADR1,10033,05556,320United Kingdom1.5%James Hardie Industries NV ADS2,00050,04162,300Netherlands1.7% SUBTOTAL106,171172,0404.7% ***Chemicals***BASF AG ADS1,20082,18888,080Germany2.4% ***Computers***Business Objects ADS*6,00019,570238,440France6.5%Dassault Systems ADR1,00028,38055,170France1.5%Sina*1,60039,84939,904China1.1% SUBTOTAL87,799333,5149.1% ***Consumer Products***Coca-Cola Femsa ADS2,10023,91052,899Mexico1.4% ***Electronics***Epcos AG ADS*2,50057,30730,850Germany0.9%Infineon Technologies AG*5,00045,90044,750Germany1.2% SUBTOTAL103,20775,6002.1% ***Machinery***Nidec2,40035,70043,200Japan1.2% ***Medical Drugs***Glaxo Smith Kline plcADR4009,80019,828United Kingdom0.6%Novartis AG ADR1,00045,17752,400Switzerland1.4%Soreno SA ADR2,00029,76136,660Switzerland1.0% SUBTOTAL84,738108,8883.0%
*(Continued on nextpage)*
*November 30, 2005 Annual Report* *21*
 

 

(Graphicomitted) 

***Sextant InternationalFund***

***Investments***
***Issue******Number of Shares******Tax Cost******Market Value******Country******Percentage***CommonStocks           ***Metals & Mining***Fording Canadian Coal Trust1,800$50,625$71,352Canada1.9%Potash Corp. of Saskatchewan1,00034,23473,150Canada2.0%Rio Tinto plc ADS50031,17581,445United Kingdom2.2% SUBTOTAL116,034225,9476.1% ***Oil & Gas Production***EnCana2,00035,02088,640Canada2.4%Repsol-YPF ADR2,00043,59259,040Spain1.6%Total Fina Elf ADR50021,86462,345France1.7% SUBTOTAL100,476210,0255.7% **Hotel & Motels**Fairmont Hotels &Resorts1,70044,64165,739Canada1.8% ***Paper Products***Metso ADS2,10022,80254,978Finland1.5%UPM-Kymmene Oyj3,50064,38465,800Finland1.8% SUBTOTAL87,186120,7783.3% ***Photographic Equipment***Canon, Inc.ADR1,00023,42656,270Japan1.5%Fuji Photo Film ADR40010,05012,800Japan0.4% SUBTOTAL33,47669,0701.9% ***Publishing-Books***Pearson plc ADS4,00048,64046,560United Kingdom1.3% ***Real Estate-Development***Intrawest1,20021,84033,456Canada0.9% ***Telecommunications***American Movil6,00029,725172,320Mexico4.7%BCE1,60030,12037,952Canada1.0%British Sky Broadcasting ADS*45011,06315,390United Kingdom0.4%China Mobil Ltd.2,00033,54148,980China1.3%PT Indosat ADR1,00020,95227,110Indonesia0.7%SK Telecom ADS3,00058,06163,390SouthKorea1.7%Telecom Corp. New Zealand ADS1,20040,15238,784New Zealand1.1%Telefonica ADS1,04033,61045,989Spain1.3%Telefonos de MexicoADS2,00035,17044,860Mexico1.2%Telus2,00063,21976,600Canada2.1% SUBTOTAL355,613571,37515.5%
*(Continued on nextpage)*
*22**November 30, 2005 Annual Report* 
(Graphicomitted) 

***Sextant InternationalFund***

***Investments***
***Issue******Number of Shares******Tax Cost******Market Value******Country******Percentage***CommonStocks           ***Transportation***Canadian Pacific LTD1,200$20,338$51,768Canada1.4%Lan Chile ADS3,50024,636128,975Chile3.5% SUBTOTAL44,974180,7434.9% ***Utilities-Electric*********EnelADR1,30058,87751,025Italy1.4%Enersis ADR4,00037,12545,880Chile1.3%Korea Elestric PowerADS4,00061,26167,360South Korea1.8% SUBTOTAL157,263164,2654.5% ***Utilities-Gas***Transport de Gas del SurADR1,50018,8078,853Argentina0.2% Total Investments$1,877,496$3,065,51983.5%Other Assets (net ofliabilities)605,58016.5%**Total NetAssets****$3,671,099****100.0%**
**Non-incomeproducing*

*ADS = American Depositary Share ADR = American DepositaryReceipt*

 
*November 30, 2005 AnnualReport* *23*
(Graphicomitted) 

***Sextant InternationalFund***

******

***Financial Highlights***
 **Year ended November30,***Selected data per share ofcapital stock outstanding throughout the year:***2005****2004****2003****2002****2001****Net asset value at beginning of year****$9.40****$8.05****$6.07****$7.24****$8.52** Income from investment operations Net investment income0.050.030.050.020.04 Net gains orlosses on securities (both realized and unrealized)1.831.351.97(1.16)(1.30)Total frominvestment operations1.881.382.02(1.14)(1.26) *Less distributions* Dividends (from net investmentincome)(0.06)(0.03)(0.04)(0.03)(0.02)Total distributions(0.06)(0.03)(0.04)(0.03)(0.02)Paid in capital from early redemptionpenalties*0.00---- **Net asset value at end ofyear****$11.22****$9.40****$8.05****$6.07****$7.24****Total return****19.95%****17.11%****33.23%****-15.80%****-14.80%** **Ratios/supplemental data**Net assets ($000), end of year$3,671$2,053$1,650$1,150$1,445**Raio of expenses to average net assets** Before fee waivers1.36%1.22%1.29%1.36%1.37% After fee waivers1.25%1.10%1.10%1.17%1.17%Ratio of net investment income after waiver to average netassets0.52%0.31%0.75%0.20%0.34%**Portfolio turnover rate****5%****7%****4%****4%****6%** **Amount is less than $0.01*
 

***Statement of Assets andLiabilities***
*As of November 30,2005***Assets** Investments (Cost $1,877,496)$3,065,519 Cash610,023 Receivable for Fund sharessold8,610 Dividends receivable5,647  Total Assets$3,689,799  **Liabilities**      Payable for Fund sharesredeemed573 Distribution payable13,921 Due to affiliates1,946 Accrued expenses2,260  Total liabilities18,700  **Net Assets** Net Assets$3,671,099**Fund shares outstanding** **327,275**  **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without parvalue)2,637,043 Accumulated net realized loss(153,967) Unrealized net appreciation on investments1,188,023  Net Assets applicable to Fundshares $3,671,099  **Net Asset Value, Offering and Redemption priceper share****$11.22***24**(The accompanying notes are anintegral part of these financial statements)**November 30, 2005 Annual Report*
(Graphic omitted) 

***SextantInternational Fund***

***Statement of Operations***
*For the year ended November 30,2005***Investment Income** Dividend income (net foreign tax of$8,574)$50,907  Gross investment income$50,907  **Expenses** Investment adviser and administrationfees21,079 Filing and registration fees6,043 Custodian fees3,274  Audit fees3,229 Chief compliance officerexpenses1,864 Insurance1,392 Legalfees1,001 Other expenses800 Trustee fees150 Printing and postage400 Total gross expenses39,232 Less custodian fees waived(3,274) Net expenses35,958  Net investment loss14,949  **Net realized gain on investments** Proceeds from sales129,205 Less cost of securities sold (based onidentified cost)107,828  Realized net gain21,377    **Unrealized gain on investments** End of year1,188,023 Beginning of year692,525 Increase in unrealized gain for theyear495,498  Net realized and unrealized loss516,875  **Net increase in net assets resulting fromoperations****$531,824**
 

***Statement of Changes in Net Assets***
 *Year ended Nov. 30, 2005**Year ended Nov. 30, 2004***INCREASE IN NET ASSETS*****FromOperations*** Net investmentincome $14,949$5,934 Net realizedgain on investments21,377460 Net increase inunrealized appreciation495,498279,482  Net increase in assets531,824285,876 ***Dividends to shareownersfrom*** Net investment income(17,930)(5,876) ***From Fund sharetransactions*** Proceeds from sales ofshares1,203,188652,936 Value of shares issued inreinvestment of dividends17,3565,863  1,220,544658,799 Early redemption penaltiesretained45- Cost of shares redeemed(115,946)(535,868)  Net increase in assets1,104,643122,931**Total increase in netassets****$1,618,537****$402,931**  **NET ASSETS** Beginning of year2,052,5621,649,631 End ofYear$3,671,099$2,052,562    Undistributed net investment income-2,020  **Shares of the Fund sold and redeemed** Number of shares sold118,46375,589 Number of shares issued in reinvestment ofdividends1,547624  120,01076,213 Number of sharesredeemed(10,994)(62,906)**Net increase in number ofshares outstanding****109,016****13,307**
*(The accompanying notes are anintegral part of these financial statements)*
*November 30,2005 Annual Report*
*25*

(Graphicomitted) 

***Sextant InternationalFund***

******

***Discussion of Fund Performance (unaudited)***

***FISCAL YEAR 2005*****   For the fiscal year ended November 30, 2005, theSextant International Fund returned +19.95%. Our benchmark AMEX InternationalIndex did not fare as well, gaining 12.13%. For this fiscal year, the Fundranked in the top 6% percent of the 507 funds in Morningstar’s peerForeign Large Blend category*. For the last 5 years, the Fund ranked in the top11% of 363 funds and for the last 10 years, the Fund ranked in the top 9% of139 funds.TheFund’soverallMorningstarcategory rating was 4-star, and “high” for returns and“high” for risk (507 funds in category).
***Industries*** ***Countries***Cash16.5% Cash16.5%Telecommunications15.6% Canada15.6%Miscellaneous <2%11.2% France12.1%Banking10.6% Mexico7.3%Computers9.1% Miscellaneous <2%6.7%Metals & Mining6.2% United Kingdom6.0%Oil & Gas Production5.7% Chile4.8%Transportation4.9% Spain4.7%Building Materials4.7% Germany4.5%Utilities-Electric4.7% Japan4.2%Paper Products3.3% Netherlands3.6%Medical-Drugs3.0% South Korea3.5%Chemicals2.4% Finland3.3%Electronics2.1% Australia2.4% China2.4% Switzerland2.4%
***FACTORS AFFECTING PASTPERFORMANCE***The U.S. dollar rebounded during 2005, reducing the returns that theSextant International Fund’s foreign investments provided domesticinvestors. The Fund is diversified across industries and countries, as shown inthe adjacent tables, but generally holds larger companies as it restrictsinvestments to stocks that trade and settle in the U.S. (such as AmericanDepository Receipts).

Our portfolio is most heavily invested in Canada, andbenefited from higher energy prices and a stronger currency. Commodity pricesincreased worldwide, bringing substantial appreciation to our cyclical andresource-based issues. We held more cash during the year than normal, as newshareowners increased and caution guarded our investing. Telecommunications(largest holding American Movil up 85%) and computers (largest holding BusinessObjects up 71%) did well. Banks did reasonably, considering higher interestrates. Oil and gas producers appreciated sharply, in response to the rise inenergy prices.

***LOOKINGFORWARD*** The Sextant International Fund is broadlydiversified in growing companies headquartered outside the United States. Therise in the U.S. dollar should moderate in 2006, helping our portfolio. Wecontinue our focus on larger companies, which tend to be more stable overtime.

***MANAGEMENT FEECALCULATIONS*** The Sextant International Fundcalculates part of its management fee based on a comparison of the Fund’sreturn to the average return of the Morningstar “Foreign” prospectusobjective peer group. At November 30, 2005, the one-year return for this averagewas 15.49%. Because the Fund’s 12-month return outperformed this averageby more than 4% at November 30, 2005, the maximum performance bonus of 0.30% wasadded to the basic 0.60% annual management fee for the month of December 2005.The help increased assets gave to lowering the expense ratio was overshadowed bybonus payments to the adviser, increasing the overall expense ratio to 1.25%from 1.10% the prior year.

***COMPARISONTO INDEX*** Comparison of any fund to an index must bemade bearing in mind that the Index is unmanaged, and expense-free. The graphbelow compares $10,000 invested in the Fund at its inception, compared to asimilar amount invested in the AMEX International Index. Thiscapitalization-weighted index averages 50 American Depository Receipts (ADRs) oflarge worldwide companies, and reflects the types of securities in which SextantInternational Fund invests. The graph shows that a $10,000 investment made onNovember 30, 1995 would have risen to $25,082 in the Fund and $15,957 in theIndex. 

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

(Graphic omitted)

Fund Average Annual ReturnsOne Year 19.95%Five Year6.07%Ten Year 9.63%

**Morningstar, Inc. is an independent fund      performance monitor. Rankings are determined monthly from total returns      by Morningstar, by category as determined by Morningstar. The overall Morningstar      rating for a fund is derived from a weighted average of the performance      figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar      Rating. The average total return for a category is determined by Saturna      Capital, utilizing the Morningstar database. Results are shown for twelve      months because theSextant Funds’ performance fees are based on the same period.(For further information, see Morningstar disclosures, page 32).*
*26* *November 30, 2005 Annual Report*
(Graphic omitted)

***Sextant InternationalFund***

***Expenses(unaudited)***

As a Sextant International Fundshareowner, you incur ongoing costs, including management fees and other fundexpenses. Unlike many mutual funds, you do not incur sales charges (loads) onpurchase payments, reinvested dividends or other distributions. Nor do you incurredemption fees, exchange fees or fees related to Individual RetirementAccounts. This example is intended to help you understand your ongoing costs (indollars) of investing in the Fund and to compare these costs with the ongoingcosts of investing in other mutual funds.

***Example*** The following example isbased on an investment of $1,000 invested at the beginning of the semi-annualperiod and held for six months (Wednesday, June 1, 2005 to Wednesday, November30, 2005).

***ActualExpenses*** The first line provides information aboutactual account values and expenses. You may use the information in this line,together with the amount you have invested, to estimate the expenses you havepaid over the period. Simply divide your account value by $1,000 (for example, a$8,600 account value divided by $1,000 = 8.6), then multiply the result by thenumber in the first line under the heading entitled “Expenses Paid DuringYear” to estimate the expenses you paid on your account during this fiscalyear. The fund also charges for these extra services rendered on request, whichyou may need to add to determine your total expenses: $10 per checkbook, $25 perbank wire, $15 per overnight courier delivery; 2% penalty for redemptions within30 days.

***Hypothetical Example ForComparison Purposes*** The second line providesinformation about hypothetical account values and hypothetical expenses based onthe Fund’s actual expense ratio (based on the last six months) and anassumed rate of return of 5% per year before expenses, which is not theFund’s actual return. The hypothetical account values and expenses may notbe used to estimate the actual ending balance or expenses you paid for the year.You may use this information to compare ongoing costs of investing in the Fundand other funds. To do so, compare this 5% hypothetical example with the 5%hypothetical examples that appear in the shareowner reports of other funds. Youmay wish to add other fees that are not included in the expenses shown in thetable, such as IRA fees (there are no fees on Saturna Capital IRAs, ESAs orHSAs), and charges for extra services such as check writing and bankwires.

Please note that the expenses shown are meant to highlight yourongoing costs only and do not reflect any transactional costs, such as salescharges (loads), redemption fees or exchange fees, or possible early redemptionpenalties. Therefore, the second line is useful in comparing ongoing costs only,and may not help you determine the relative total costs of owning differentfunds. 
**Short-Term BondFund****Beginning Account Value (Wednesday, June 1,2005)****Ending Account Value (Wednesday, November 30, 2005)****Expenses Paid During Period***Actual (19.95% return after expenses)$1,000.00$1,199.50$7.39Hypothetical (5% return beforeexpenses)$1,000.00$1,018.35$6.78
*Expenses are equal to the SextantGrowth Fund’s annualized expense ratio of 1.34% (based on the most recentsemi-annual period of June 1, 2005 through November 30, 2005), multiplied by theaverage account value of $1,099.75 over the period multiplied by 183/365 (toreflect the one-half year period).
**November 30,2005 Annual Report***27*
 

***Notes ToFinancial Statements***

***NOTE 1 -Organization*** Saturna Investment Trust (the“Trust”) was established under Washington State Law as a BusinessTrust on February 20, 1987. The Trust is registered as a no-load, open-endseries investment company under the Investment Company Act of 1940, as amended.Five portfolio series have been created to date: Sextant Short-Term Bond Fund,Sextant Bond Income Fund, Sextant Growth Fund, and Sextant International Fund(the “Funds”), and Idaho Tax-Exempt Fund, distributed through aseparate prospectus and the results of which are contained in a separate report.

Theinvestment goals of the Growth and International Funds are long-term capitalgrowth. The investment goals of the Bond Income and Short-Term Bond Funds arecurrent income, with Short-Term Bond having the additional goal of capitalpreservation.

***NOTE 2 - Significant AccountingPolicies*** The following is a summary of thesignificant accounting policies followed by the Funds.

**SecurityValuation:** Investments in securities traded on a nationalsecurities exchange (or reported on the NASDAQ national market) are stated atthe last reported sales price on the day of valuation; other securities tradedin the over-the-counter market and listed securities for which no sale wasreported on that date are stated at the last quoted bid price. Securities forwhich quotations are not readily available are adjusted to fair value asdetermined in good faith under the supervision of the trustees. 

Fixed-income securitiesfor which there are no publicly available market quotations are valued using amatrix based on maturity, quality, yield and similar factors, which are comparedperiodically to multiple dealer bids and adjusted by the adviser under fairvalue policies established by the trustees. The ability of issuers of debtsecurities held by the Funds to meet their obligations may be affected byeconomic and political developments in a specific country or region.

**Federal incometaxes:** The Funds’ policies are to continue to comply withthe requirements of the Internal Revenue Code applicable to regulated investmentcompanies and to distribute all their taxable income to their shareowners.Therefore, no provisions for Federal income taxes are required. 

**Reclassificationof capital accounts:** Accounting principles generally accepted inthe United States of America require that certain components of net assetsrelating to permanent differences be reclassified between financial and taxreporting. The Sextant Short Term Bond Fund decreased accumulated net investmentloss by $956 and decreased paid in capital by $956. The Sextant Bond Income Funddecreased accumulated net investment income loss by $49, decrease accumulatednet realized loss by $10,891 and decreased paid in capital by $10,940. TheSextant Growth Fund decreased accumulated net investment loss by $12,514 anddecreased paid in capital by $12,514. The Sextant International Fund decreasedaccumulated net investment loss by $961 and decreased paid in capital by $961.These reclassifications have no effect on net assets or net asset value pershare.

**Dividends and distributions to shareowners:**Dividends and distributions to shareowners, which are determined in accordancewith income tax regulations, are recorded on the ex-dividend date. For theSextant Short-Term Bond Fund and Sextant Bond Income Fund, dividends are paiddaily and distributed on the last business day of each month. For the SextantGrowth Fund and Sextant International Fund, dividends are payable at the end ofeach November. Shareowners electing to reinvest dividends and distributionspurchase additional shares at the net asset value on the payable date.

**Useof Estimates:** The preparation of financial statements inconformity with accounting principles generally accepted in the United States ofAmerica requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements and the reported amountsof increases and decreases in net assets from operations during the reportingperiod. Actual results could differ from those estimates.

**Other:** Thecost of securities is the same for accounting and Federal income tax purposes.Securities transactions are recorded on trade date. Interest income isrecognized on an accrual basis. Discounts and premiums on securities purchasedare amortized, over the lives of the respective securities. Cash dividends fromequity securities are recorded as income on the ex-dividend date. 

Expenses incurred by theTrust on behalf of the Fund (e.g., professional fees) are allocated to the Fundand the other Funds of the Trust on the basis of relative daily average netassets. The Adviser has agreed to certain limits on expenses, as describedbelow.

TheTrustees have adopted certain policies and procedures with respect to frequenttrading of Fund shares. The Funds are intended for long-term investment and donot permit rapid trading of their shares. Shares held less than 30 calendardays, including those held in omnibus accounts at intermediaries, will beassessed a 2% early-redemption penalty (payable to the Fund).

***NOTE 3 - Transactions with AffiliatedPersons*** Under a contract approved by shareowners onSeptember 28, 1995, Saturna Capital Corporation provides investment advisoryservices and certain other administrative and distribution services to conductTrust business. Each of the Funds pays the Adviser a base Investment Advisoryand Administrative Services Fee of .60% of average net assets per annum, payablemonthly.  The base Advisory Fee is subject to adjustment up or downdepending on the investment performance of the Fund relative to a specifiedindex. Performance Adjustment for Sextant Short-Term Bond Fund and Sextant BondIncome Fund: 
-  For each month in which either of theseFunds’ total investment return (change in net asset value plus alldistributions reinvested) for the one year period through that month outperformsor underperforms the total return of a specified index for that period by 1% ormore but less than 2%, the Base Fee is increased or decreased by the annual rateof .10% of the Fund’s average daily net assets for the preceding year. 

If the outperformance or underperformance is 2% or more,then the adjustment is at the annual rate of .20%.  Performance adjustmentfor Sextant Growth Fund and Sextant International Fund: 
-  For each month in which either of these Fund’s totalinvestment return (change in net asset value plus all distributions reinvested)for the one year period through that month outperforms or underperforms thetotal return of a specified index for that period by 1% or more but less than2%, the Base Fee is increased or decreased by the annual rate of .10% of theFund’s average daily net assets for the preceding year. 
-  If the outperformance or underperformance is 2% or more but less than 4%, thenthe adjustment is at the annual rate of .20%.  
-  If theoutperformance or underperformance is 4% or more, the adjustment is at an annualrate of .30%. 

The Adviser has voluntarily undertaken tolimit expenses of Sextant Short-Term Bond Fund to 0.60% through March 31, 2006and waives its investment advisory and administrative fee as to SextantShort-Term Bond Fund and Sextant Bond Income Fund completely so long as assetsof either Fund are less than $2 million. For the year ended November 30, 2005,Sextant Short-Term Bond Fund incurred advisory and administration expenses of$14,053. 
*28***November 30, 2005 Annual Report**
***Notes To FinancialStatements***

Sextant Bond Income Fund and Sextant GrowthFund incurred advisory and administration expenses of $12,864 and $56,759,respectively. Sextant International Fund incurred advisory and administrationexpenses of $21,079. In accordance with the expense waiver noted above, for theyear ended November 30, 2005, Saturna Capital waived $13,091 of the SextantShort-Term Bond Fund advisory fee.

In accordance with the Funds’ custodian agreementswith National City Bank Indiana, for the year ended November 30, 2005, custodianfees for Short-Term Bond, Bond Income, Growth, and International were $2,634,$891, $3,100, and $3,274, respectively. The custodian waived its fees forearnings credits. One trustee, who also serves as the president of theTrust, is a director and president of the Adviser. On December 23, 2005, thetrustees, officers and their related accounts as a group owned 29.4%, 27.3%,42.7% and 61.2% of the outstanding shares of Short-Term Bond, Bond Income,Growth and International, respectively.

The four unaffiliated trustees receive $300per Board or committee meeting attended, plus travel expenses. The Trustincurred expenses for the independent trustees of $9,000 to attend meetingsduring the fiscal year. Regulations require the Trust to designate a ChiefCompliance Officer; Mr. Winship was retained by the Trust and paid $13,163during the fiscal year. The other officers are paid by Saturna Capital, and notthe Trust.

Saturna Brokerage Services, Inc. (a discount brokerage subsidiary ofSaturna Capital Corporation) is a registered as a broker-dealer and acts asdistributor without compensation. 

Saturna Brokerage Services is the primary stockbrokerused to effect portfolio transactions for Sextant Growth Fund and SextantInternational Fund, and was paid $279 and $0, respectively in commissions atdiscount rates during the year ended November 30, 2005. The adviser hasundertaken to waive all brokerage commissions charged by its affiliate incalendar 2006.

***NOTE 4 - Federal IncomeTaxes*** At November 30, 2005, Short-Term Bond hadcapital loss carryforwards of $40,485, of which $766 expires in 2005, $4,467expires in 2007, $9,191 expires in 2008, $15,099 expires in 2009, $4,422 expiresin 2011 and $6,540 expires in 2012; Bond Income had capital loss carryforwardsof $22,124, of which $5,730 expires in 2007, $2,141 expires in 2009 and $14,253expires in 2010; and International had capital loss carryforwards of $153,967,of which $52,590 expires in 2009, $70,706 expires in 2010 and $30,671 expires in2011, subject to regulation. Prior to their expiration, such loss carryforwardsmay be used to offset future net capital gains realized for federal income taxpurposes.

***NOTE 5 -Investments*** During the year ended November 30, 2005,Short-Term Bond pur-chased $1,309,970 of securities and sold $738,096 ofsecurities. Comparable figures for Bond Income are $622,986 purchased and$106,937 sold; for Growth $1,441,884 and $254,739; and for International,$739,826 and $129,205. 

***NOTE 6 -Distribution toshareholders*** The tax character of distributions paidduring the year ended November 30, 2005 and 2004 were as follows: 
 20052004Short-TermBondFundOrdinary income$83,151$90,916Bond Income FundOrdinary income126,361111,643Growth FundOrdinary income(2,289)4,622Capitalgains(12,474)60,280International FundOrdinary income$17,930$5,876
As of November 30, 2005, components ofdistributable earnings on a tax basis were as follows:
 Short-TermBondBond IncomeGrowthInternationalCost of investments$2,449,810$2,882,996$4,433,515$1,877,496Gross tax unrealizedappreciation43112,2273,755,9001,262,180Gross tax unrealizeddepreciation(44,460)(38,147)(191,049)(73,807)Net tax unrealized appreciation(depreciation)(44,417)74,0803,564,8511,188,023Undistributed ordiaryincome----Undistributed long-term capital gain (loss)(40,485)(22,124)-(153,967)Totaldistributable earnings(40,485)(22,124)-(153,967)Total accumulated earnings(losses)$(84,902)$51,956$3,564,851$1,034,086
 
**November 30, 2005 Annual Report***29*
***RENEWAL OF INVESTMENT ADVISORY CONTRACTS(unaudited)***

On September 24, 2005, the trustees of Saturna InvestmentTrust approved continuation of the Sextant Funds’ investment advisory andadministrative services agreements with Saturna Capital Corporation. In doingso, the Board considered a number of factors and made specific determinationsrelevant to that approval. 

In addition to information provided throughout the year,the trustees utilized a comparison of performance and fees of all funds in eachof the Sextant Morningstar peer categories as well as reports prepared byLipper. The trustees found such information helpful in establishing expectationsregarding the performance of the adviser and whether to continue the advisorycontracts.

Intheir review, the Trustees noted that the Funds offer a full range ofhigh-quality investor services. The Trustees reviewed improvements inSaturna’s operations during the last year, and its increasing assets undermanagement from other Saturna mutual funds. An important factor in theconsideration by the Trustees was the adviser’s ability and commitment tointernally perform shareowner servicing, administration, accounting, marketingand distribution to maintain quality servicing at a reasonableexpense.

TheTrustees found that the investment performance of Sextant Growth and SextantInternational Funds, both in absolute numbers and relative to funds in theirMorningstar categories and Lipper categories, was exceptional. This wasconfirmed by their current Morningstar and Lipper ratings, and helped thesefunds build assets and lower expense ratios. The investment performance ofSextant Bond Income and Sextant Short-term Bond Funds was found to beacceptable.

The Trustees reviewed the fees and expenses of the Funds. They notedthat the performance-based advisory fees are unusual in the industry and veryfair and reasonable to shareowners. They considered the fees charged by theadviser to other kinds of accounts and the different services provided to thoseaccounts. In addition, the Trustees found the expense ratios less than those ofsimilar funds and to be advantageous to shareowners given the sizes of thefunds, services provided and expenses incurred. They took into consideration theadviser’s avoidance of operational problems and its diligence in complyingwith increased investment company rules and regulations. 

The trustees considered theten-year history of the funds under their current advisory agreements. Thetrustees observed that the use of performance-based advisory fees, combined withgood performance recordsperformance records and low expense ratios do not appearto be sufficient to attract substantial additional assets to the Trust, whichcan contribute to lower expense ratios and other advantages. The trusteesdiscussed alternatives, including adoption of a flat advisory fee and a“12b-1” plan to assist in efforts to promote investment in thefunds, such as increased marketing and payments to dealers for their assistancein marketing funds and servicing customers who invest in the funds. The trusteesmade no decisions and took no steps, pending a formal proposal from the adviseron the matter.

The trustees found that the Sextant Funds continue to operate at aloss to the adviser. They know the adviser is relatively small, with operationalprofit or loss dependent upon market cycles. It continues to invest inimprovements in its operation and services, and seeks to improve compensation toattract and retain increasingly qualified, experienced and specialized staff.The trustees found no significant “fall out benefits” such as“soft dollars” that were of benefit to Saturna. The trusteesappreciated that Saturna voluntarily waived brokerage commissions for SextantGrowth and Sextant International Fund portfolio trades, effective January 1,2005, which negatively impacts Saturna Capital’s profitability. Saturnahad also voluntarily waived part of its advisory fee for the Sextant Short-termBond Fund.

***Availability of Sextant Portfolio Information(unaudited)***

(1) The Sextant Funds file complete schedules of portfolio holdingswith the SEC for the first and third quarters of each fiscal year on FormN-Q. (2) The Funds’ Forms N-Q are available on the SEC’swebsite at http://www.sec.gov., and at www.saturna.com. (3) TheFunds’ Forms N-Q may be reviewed and copied at the SEC’s PublicReference Room in Washington, DC. Information on the operation of the PublicReference Room may be obtained by calling 1-800-SEC-0330. (4) The Fundsmake a complete schedule of portfolio holdings after the end of each monthavailable to investors at http://www.saturna.com.

***Availability ofProxy Voting Information (unaudited)***

(1) A description of the policies andprocedures that the Funds use to determine how to vote proxies relating toportfolio securities is available (a) without charge, upon request, by callingSaturna Capital at 1-800 728-8762 (b) on the Funds’ website athttp://www.saturna.com; and (c) on the SEC’s website athttp://www.sec.gov. (2) Information regarding how each Fund voted proxiesrelating to portfolio securities during the most recent 12-month period endedJune 30 is available (a) without charge, upon request, by calling SaturnaCapital at 1-800 728-8752; (b) on the Funds’ website athttp://www.saturna.com; and (c) on the SEC’s website athttp://www.sec.gov.
*30***November 30, 2005 Annual Report*****Trustees and Officers (unaudited)***
**Name (age) Address**
**Position(s)held with Trust and Length of  Time Served****Principal Occupation(s) during past 5 Years****Number of Portfolios in Saturna Fund Complex overseenby Trustee****Other Directorships Held byTrustee*****Independent Trustees***Gary A. Goldfogel, MD (47)1500 N. State Street Bellingham, WA 98226IndependentTrustee (since 1995)Medical Examiner (pathologist) Owner, Avocet Environmental Testing (laboratory)FiveNoneHerbert G.Grubel (71) Apt. 1202 - 125 West Second St. North Vancouver, BC Canada, V7M 1C5 Independent Trustee (since2005)Senior Fellow, Fraser Institute; Professor(Emeritus) of Economics, Simon Fraser University; AuthorFiveNoneJohn E. Love (73) 1002 Spokane Street Garfield, WA99130Chairman;Independent Trustee (since 1987)Owner, J.E. Love Co., (agricultural equipmentmanufacturer)FiveNoneJohn S. Moore (74) 346 Bayside Road Bellingham, WA98225IndependentTrustee (since 1993)Professor (nowretired), College of Business and Economics, Western WashingtonUniversityFiveNone***Interested Trustee***Nicholas F. Kaiser, CFA (59) 1300 N. State StreetBellingham, WA 98225President; Trustee* (since 1989)President, Saturna Capital Corporation President,Saturna Brokerage ServicesSevenAmana Mutual FundsTrust***Officers Who Are Not Trustees***Phelps S. McIlvaine (52) 1300 N. State StreeetBellingham, WA 98225Vice President (since 1994)Vice President, Saturna Capital CorporationTreasurer, Saturna Brokerage ServicesN/AN/AChrisopher R. Fankhauser (33) 1300 N. StateStreet Bellingham, WA 98225Treasurer* (since 2002)Manager of Operations, Saturna Capital CorporationN/AN/AEthel B. Bartolome (33) 1300 N. State StreetBellingham, WA 98225Secretary* (since 2001)CorporateAdministrator, Saturna Capital Corporation [since 2000]  Administrator,Cytel Corporation [1994-1999]N/AN/AJames D. Winship (57) 5406 DiamondPlace NE Bainbridge Island, WA 98110Chief Compliance Officer* (since 2004)Attorney;Adjunct Professor, University of Washington and Seattle Pacific Univeristy(1999-2003)N/AN/A
Term ofOffice: Each trustee serves for the lifetime of the Trust or until he dies,resigns, is removed, or not re-elected by the shareowners. Each officer serves aone-year term subject to annual reappointment by the trustees. Professor Grubelwas elected a trustee on December 14, 2005, after the period described in thisreport.

TheTrust’s Statement of Additional Information, available without charge bycalling Saturna Capital at 800-SATURNA, includes additional information aboutthe trustees.

On December 23, 2005, the trustees, officers and their relatedaccounts as a group owned 29.4%, 27.3%, 42.7% and 61.2% of the outstandingshares of the Bond Income, Short-Term Bond, Growth and International Funds,respectively. Saturna Capital Corporation is the Trust’s adviser andSaturna Brokerage Services, Inc. is the Trust’s distributor. Mr. Kaiser isan interested person of the Trust by reason of his positions with theTrust’s adviser and distributor and the portfolio primary manager of theSextant Growth Fund and the Sextant International Fund. Mr. McIlvaine is theprimary portfolio manager of the Sextant Bond Income Fund and Sextant Short-termBond Fund. Mr. Winship is also Chief Compliance Officer for Saturna CapitalCorporation.

*Holds the same position with Amana Mutual Funds Trust. 
**November 30,2005 Annual Report***31*
**This report is issued for the information of the shareownersof the Funds. It is not authorized for distribution to prospective investorsunless it is accompanied or preceded by an effective prospectus relating to thesecurities of the Funds. The Sextant Funds are a series of Saturna InvestmentTrust.**

**Saturna Brokerage Services,Distributor**

***PrivacyStatement***

At Saturna Capital, we understand the importance to you inmaintaining the privacy of your financial information. To that end, we want toassure you that we protect the confidentiality of any personal information youshare with us.

We collect personal information about you from information wereceive from you on applications and other forms and from transactions or tradesplaced with us. Please be assured that except to administer a transaction withan affiliated third party upon your request, we do not disclose any personalinformation about our customers, or our former customers, to anyone, except asmay be required by law. We maintain our own technology resources to minimize theuse of outside service providers.

Additionally, Saturna Capital restricts access topersonal information about you to those employees who need to know thatinformation to provide products or services to you. We maintain physical,electronic, and procedural safeguards that comply with regulations to guard yourpersonal information. If you have further questions or concerns about thesecurity or privacy of the information we receive from you, please call us at800 / SATURNA.

***Morningstar*** (trademark)

***Source: Morningstar 11/30/05.**

Pastperformance does not guarantee future results. For each fund with at least athree-year history, Morningstar calculates a Morningstar Rating™ based ona Morningstar Risk-Adjusted Return measure that accounts for variation in afund’s monthly performance (including the effects of sales charges, loadsand redemption fees), placing more emphasis on downward variations and rewardingconsistent performance. The top 10% in each category receive 5 stars, the next22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10%receive 1 star. The Overall Morningstar Rating™ for a fund is derived froma weighted average of performance figures associated with its 3-, 5- and 10-year(if applicable) Morningstar Rating metrics.

Sextant Short-Term Bond was 238th of 408 Short-term Bond fundsin the last year, 84th of 308 funds in the last 3 years, 75th of 220  funds in the last 5 years and 58th of 130 funds in the last 10 years. With  respect to these Short-term Bond funds, Sextant Short-Term  Bond received a Morningstar Rating of 3, 3 and 3 for the 3-, 5- and 10-year  periods ended 11/30/05, respectively.

Sextant Bond Income was 56th of 71 Long Term Bond funds inthe last year, 38th of 53 funds in the last 3 years, 20th of 41 funds in  the last 5 years and 12th of 21 funds in the last 10 years. With respect to  these Long Term Bond funds, Sextant Bond Income received  a Morningstar Rating of 2, 3 and 2 for the 3-, 5- and 10-year periods ended  11/30/05, respectively.

Sextant Growth was 49th  of 929 Mid-Cap Growth funds in the last year, 237th  of 800 funds in the last 3 years, 85th of 594 funds in  the last 5 years and 30th of 212 funds in the last 10 years. With respect to  these Mid-Cap Growth funds, Sextant Growth received a  Morningstar Rating of 4, 4 and 4 for the 3-, 5- and 10-year periods ended  11/30/05, respectively.

Sextant International  was 30th of 597 Foreign Large Blend funds in the last  year, 12th of 507 Foreign Large Blend funds in the last  3 years, 32nd of 363 funds in the last 5 years and 11th of 139 funds in the  last 10 years. With respect to these Foreign Large Blend  funds, Sextant International received a Morningstar Rating of 5, 4 and 4 for  the 3-, 5- and 10-year periods ended 11/30/05, respectively.

 

Saturna Capital (graphicomitted)

1300North State Street Bellingham, WA 98225 www.saturna.comsextant@saturna.com (800) SATURNA 

(graphic omitted)
 
 

 

***Idaho Tax-Exempt        Fund***

(graphic omitted)

**Annual Report**

**November 30, 2005**

(graphic omitted)

**Report of        REGISTERED INDEPENDENT PUBLIC ACCOUNTING FIRM**

To the Shareowners and Board of Trustees        Idaho Tax-Exempt Fund:

We have audited the accompanying statement of assets and liabilities of            the Idaho Tax-Exempt Fund, a series of shares of the Saturna Investment            Trust, including the schedules of investments as of November 30,            2005, and the related statements of operations for the year then            ended, the changes in net assets for each of the two years in the            period then ended, and the financial highlights for the five years            in the period then ended. These financial statements and financial            highlights are the responsibility of the Trust’s management.            Our responsibility is to express an opinion on these financial statements            and financial highlights based on our audits. 

We            conducted our audits in accordance with the standards of the Public            Company Accounting Oversight Board (United States). Those standards            require that we plan and perform the audit to obtain reasonable assurance            about whether the financial statements and financial highlights are            free of material misstatement. We were not engaged to perform an            audit of the Trust’s internal control over financial reporting.            Our audits included consideration of internal control over financial            reporting as a basis for designing audit procedures that are appropriate            in the circumstances, but no for the purposes of expressing an opinion            on the effectiveness of the Trust’s internal control over financial            reporting. Accordingly, we express no such opinion. An audit includes            examining, on a test basis, evidence supporting the amounts and disclosures            in the financial statements. Our procedures included confirmation            of securities owned as of November 30, 2005, by correspondence with            the custodian and broker. Our audit also includes assessing the accounting            principles used and significant estimates made by management, as            well as evaluating the overall financial statement presentation.            We believe that our audits provide a reasonable basis for our opinion.

In our opinion the financial statements and financial highlights            referred to above present fairly, in all material respects, the financial            position of Idaho Tax-Exempt Fund as of November 30, 2005, the results            of its operations for the year then ended, the changes in net assets            for each of the two years in the period then ended, and the financial            highlights for each of the five years in the period then ended, in            conformity with accounting principles generally accepted in the United            States of America.

Tait, Weller & Baker            LLP

(graphic omitted)

Philadelphia, Pennsylvania        January 3, 2006

***Fellow Shareowners: (unaudited)***

For the fiscal year ending November            30, 2005, Idaho Tax-Exempt Fund provided a total return of +1.64%.            The net asset value was $5.27 per share compared to $5.39 one year            ago and $5.48 two years ago. Helped by reinvested dividends, Fund            assets increased slightly to $8.53 million, and helped reduce the            expense ratio from 0.93% last year to 0.88% this year.

In 2005, surging            energy and raw materials prices raised investor concerns about inflation.            The Federal Reserve continued to withdraw its accommodative monetary            policy by increasing short-term rates in a major way, from 2% to            4.25%. Most municipal note and bond yields rose, with short rates            rising more than long rates for a second year. Rising rates reduce            municipal bond prices and the Idaho Fund’s total return. While            there have been disruptions, domestic productivity and globalization            have held U.S. inflation at under 2%. Encouraged by a strong U.S.            dollar, foreign demand for U.S. fixed income assets remains robust            and has limited the yield rise on long-term bonds. 

Looking ahead, we expect the Federal            Reserve to move the Federal funds rate up to 5% in 2006. The bond            market will anticipate this peak in short-term rates well before            the end of the current tightening cycle, and the yield curve may            invert. We have become less concerned about U.S. inflation rate risk            and are extending the weighted average maturity of the Fund at current            yields. We expect better returns for the Idaho fund in 2006, and            any further increase in short-term rates to be minor.

Conservative investors            choose the Idaho Fund for high quality tax-free municipal bonds and            low price volatility when they reallocate assets from higher-risk            common stocks to the relative safety of municipal bonds. For 2006,            challenging forces for equities may mean a good year for the Idaho            Tax Exempt Fund. We recommend a balanced portfolio diversified with            both common stocks and Idaho Tax Exempt Fund. Idaho has many new            residents (i.e., taxpayers) who can benefit from a tax-exempt bond            portfolio.

The Idaho economy            and State employment are once again growing above the national average.            Idaho exporters of electronics are in a two-year boom. Construction            spending has defied all expectations and remains strong. The State            is forecasting a $200 million budget surplus despite the expiration            of temporary tax increases. Idaho issuer credit worthiness remains            high. The government’s fiscal discipline and pro-business policies            still give the State a sharp competitive edge.

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

 

**Nicholas Kaiser,**        President

**Phelps McIlvainer,**        Vice President, Portfolio Manager 
2Idaho Tax-Exempt          Fund Annual Report November 30, 2005
***Investments***
***Rating******Issuer******Coupon/Maturity******Face Amount******Market Value******Percentage***    ***Electric Power***AAAIdaho Falls Electric Revenue6.75% due 4/1/2019$150,000$153,0961.8%    ***Financial Services***AAABoise City General Fund Revenue5.20% due 12/1/2017160,000171,6672.0%AAA"5.25% due          12/1/2018100,000107,0241.3%  SUBTOTAL260,000278,6913.3%    ***General Obligation***AA-Ada & Canyon JSD #2 Meridian5.50% due 7/30/2015100,000111,8381.3%AAAAda & Canyon JSD #2 Meridian5.00% due 8/15/2020165,000175,7162.1%AAAAda & Canyon JSD #2 Meridian5.00% due 8/15/2021155,000164,4591.9%AAAAdams County5.00% due 8/1/2014110,000111,1491.3%AAAAdams & Washington4.00% due 8/15/2019100,00098,1781.2%A+Bannock County Jail5.05%        due 9/1/201295,00096,6911.1%AAABannock County SD #25 Pocatello5.20% due 8/1/2014100,000102,5421.2%A+"5.25% due 8/1/2016110,000112,6651.3%A+"4.90% due 8/1/200990,00091,8271.1%AAABingham County SCD #55 Blackfoot4.65% due 8/1/2017285,000296,0153.5%AABoise City ISD Ref. Ada & Boise5.00% due 8/15/2014100,000108,0611.3%ABoise        County SD#73 Horseshoe Bend5.15% due 7/31/2010125,000128,3391.5%AAABoundary County SCD #1014.05% due 8/1/2015200,000199,9592.3%AAA"5.10% due 8/1/2022130,000138,3571.6%AAACaldwell, Idaho5.30% due 5/15/2014150,000160,2381.9%
AAA
Canyon County SCD #139 Valley View4.05% due 8/15/201680,00080,0180.9%ACanyon County SCD #131 Nampa4.75% due 8/15/2019
325,000
335,8493.9%AAACanyon County SD #134 Middleton4.65% due 7/31/2016170,000179,9172.1%ACanyon County SD #1356.00%        due 8/1/200750,00049,8200.6%AAACassia & Twin Falls JSD #1515.375% due 8/1/201385,00085,8241.0%AAA"5.375% due 8/1/201575,00075,7270.9%AAAClark County SD #161 Dubois5.00% due 8/1/2015270,000286,0783.4%AAAIdaho Housing & Finance Association4.80% due 6/1/2017100,000105,1301.2%AAAKoonetai County SD #2735.00% due 7/30/201670,00070,9970.8%AAAKoonetai-Shonshone Area Library4.25% due 8/1/2021220,000221,3552.6%AAAKuna School/Community Library District4.90% due 8/1/201375,00077,4170.9%AAALemhi County4.20% due 8/1/2015100,000100,9411.2%AAAMeridian Free Library District5.00% due 8/1/2015200,000201,3582.4%AAANampa Idaho Series B5.00% due 8/1/2020200,000208,9022.4%AAAOneida County SCD #351 Malad City4.00% due 8/15/2015150,000153,4101.8%AAAOwyhee & Canyon Cos. JSD #3704.55% due 8/15/2016160,000169,6032.0%AAAPower & Cassia Cos. JSD #3815.25% due 8/1/201260,00062,8740.7%AAATeton County SD #4015.50%          due 8/1/201275,00075,4730.9%  SUBTOTAL4,480,0004,636,72754.3%    ***Housing***AAIdaho Housing Agency Single Family Mortgage, B-16.85% due 7/1/201210,0009,9750.1%AAIdaho Housing Agency Refunding        Series A6.15% due 7/1/202425,00024,7600.3%AAAIdaho Housing Agency Single Family        Mort Mezz E-16.60% due 7/1/201115,00014,9510.2%AAAValley County Jail Project Ref.4.70% due 8/1/2014125,000128,8301.5%  SUBTOTAL175,000178,5162.1%Idaho Tax-Exempt        Fund Annual Report November 30, 20053***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$67,8300.8%AAAIdaho Health Facility Auth. Ref.        Holy Cross Sys Corp. Rev5.25% due 12/1/2014110,000114,4321.3%AAAIdaho Health Facility Auth. Corp.        Holy Cross Rev. Refunding5.00% due 12/1/2022115,000118,3271.4%AAAMadison CO Hospital COP5.00% due 12/1/2018105,000109,3431.3%  SUBTOTAL395,000409,9324.8%    ***Pollution Control***AAAIdaho Bond Bank Authority4.30% due 9/1/2022135,000132,3091.6%    ***Real Estate***AAAIdaho State Building Association5.05% due 9/1/201895,00098,0211.1%AAAIdaho State Building Authority5.00% due 9/1/2021100,000102,8201.2%AJerome Urban Renewal District5.40% due 9/1/2013200,000203,2662.4%  SUBTOTAL395,000404,1074.7%    ***Roads***APost Falls L.I.D. #91-47.95% due 4/15/200620,00019,8150.2%A"7.95% due          4/15/200720,00020,3430.2%  SUBTOTAL40,00040,1580.4%    ***State Education***AAABoise State University Rev.5.00% due 4/1/2019295,000313,6593.7%AAAIdaho State Building Authority4.00% due 9/1/2016105,000104,0581.2%AAAIdaho State University Ref & Improvement4.90% due 4/1/2017150,000155,0791.8%AAAIdaho State University Rev4.625% due 4/1/2024220,000229,0562.7%AAAUniversity of Idaho Student Fee        Rev5.00% due 4/1/2019200,000212,6502.5%AAAUniversity of Idaho Student Fee        Rev5.00% due 4/1/2020160,000169,5242.0%  SUBTOTAL1,130,0001,184,02613.9%    ***Sewer***ATroy, Sewer Revenue7.80% due 2/1/200615,00014,9000.2%A"7.90% due 2/1/200715,00014,9060.2%A"8.00% due 2/1/200815,00014,9100.2%A"8.00% due 2/1/200920,00019,8820.2%A"8.00% due 2/1/201020,00019,8880.2%  SUBTOTAL85,00084,4861.0%    ***Urban Renewal***AAABoise City Urban Renewal Agency        Pk Rev & RA5.00% due 9/1/201265,00067,8150.8%AAABoise City Urban Renewal Lease        Rev5.00% due 8/15/2020190,000201,2322.4%AAABoise City Urban Renewal Agency        Lease Rev5.00% due 8/15/2021110,000116,1471.4%AAPocatello Development Auth Rev        Tax Inc5.15% due 3/1/2011150,000151,4351.8%  SUBTOTAL515,000536,6296.4%    ***Water Supply***AAABlackfoot COP Series 20005.80% due 9/1/2018135,000148,2371.7%AAAKetchum Water Revenue4.75%          due 9/1/201360,00061,3470.7%  SUBTOTAL195,000209,5842.4%    **Total          Investments****(Total Cost = $8,178,702)****$7,955,000****$8,248,261****96.7%** **Other          Assets (net of liabilities)** **283,187****3.3%** **Total          Net Assets (100%)** **$8,531,448****100.0%**4*These unaudited          bond ratings reflect the adviser's current rating of each bond, as          determined using Standard & Poor's and Moody's Ratings.Idaho Tax-Exempt Fund Annual Report November 30, 2005
***Financial Highlights***
 **Year ended November 30,***Selected data per share of          capital stock outstanding throughout the year:***2005****2004****2003****2002****2001****Net          asset value at beginning of year****$5.39****$5.46****$5.37****$5.28****$5.13** Income from investment operations Net investment income0.190.190.210.220.22 Net gains (losses) on securities, both realized        and unrealized(0.10)(0.07)0.090.090.15Total from investment        operations0.090.120.300.310.37 *Less distributions* Dividends (from net investment income)(0.19)(0.19)(0.21)(0.22)(0.22) Distributions (from capital gains)(0.02)----Total distributions(0.21)(0.19)(0.21)(0.22)(0.22)Paid        in capital from early redemption penalties*0.00---- **Net asset value at end of year****$5.27****$5.39****$5.46****$5.37****$5.28****Total return****1.66%****2.29%****5.40%****5.98%****7.40%** **Ratios/supplemental data**Net assets ($000), end of year$8,531$8,472$7,692$6,943$6,650**Raio of expenses to average net assets** Before fee waivers0.91%0.95%0.88%0.88%0.90% After fee waivers0.88%0.93%0.85%0.80%0.79%Ratio of net investment income after waiver to average net assets3.58%3.56%3.78%4.14%4.21%**Portfolio turnover rate****21%****15%****6%****11%****13%** **Amount is less than $0.01*
 

***Statement of Assets and Liabilities***
*As of November 30, 2005***Assets** Bond Investments (Cost $8,178,702)$8,248,261 Cash536,874 Interest receivable116,983 Receivable for Fund shares sold6,977 Insurance reserve premium800  Total Assets$8,909,895  **Liabilities**      Payable for securities purchased338,920 Payable for Fund shares redeemed20,026 Distributions payable10,200 Due to affiliates4,075 Accrued expenses5,226  Total liabilities378,447  **Net Assets****$8,531,448****Fund shares outstanding** **1,618,059**  **Analysis of Net Assets** Paid in capital (unlimited shares authorized, without        par value)8,461,809 Undistributed net investment income80 Unrealized net appreciation on investments69,559  Net Assets applicable to Fund shares $8,531,448  **Net Asset Value, Offering and Redemption price          per share****$5.27***(The accompanying notes are an integral part of these financial statements.)*Idaho Tax-Exempt Fund Annual Report        November 30, 2005 *5*
***Statement of Operations***
*For the year ended November 30, 2005***Investment Income** Interest income$399,057 Amortization of bond premium(22,704) Other income205  Gross investment income$376,558  **Expenses** Investment adviser and administration fees42,315 Audit fees 8,100 Insurance5,395 Chief compliance officer fees5,049 Legal fees5,000 Shareholder service fee4,150 Trustee fees3,250 Custodian fees1,982 Filing and registration fees900 Printing and        postage75  Total gross expenses76,216 Less custodian fees waived(1,960) Net expenses74,256  Net investment income302,302  **Net realized gain on investments** Proceeds from sales1,745,516 Less cost of securities sold (based on identified        cost)1,685,055  Realized net gain60,461    **Unrealized gain (loss) on investments** End of year69,559 Beginning of year293,708 Decrease in unrealized gain for the year(224,149)  Net realized and unrealized loss(163,688)  **Net increase in net assets resulting from operations****$138,614**
 

***Statement of Changes in Net Assets***
 *Year ended Nov. 30, 2005**Year ended Nov. 30, 2004***INCREASE (DECREASE) IN NET ASSETS*****From Operations*** Net investment income$302,302$281,029 Net realized gain (loss) on investments60,461(13,470) Net decrease        in unrealized appreciation(224,149)(76,652)  Net increase in assets138,614190,907 ***Dividends to shareowners from*** Net investment income(302,222)(281,029) Capital gains        distributions(25,992)-  (328,214)(281,029) ***From            Fund share transactions*** Proceeds from sales of shares1,076,3701,610,860 Value of shares        issued in reinvestment of dividends264,076223,255  1,340,4461,834,115 Early redemption        penalties retained28- Cost of shares redeemed(1,091,850)(963,286)  Net increase in assets248,624870,829**Total increase (decrease)          in net assets****$59,024****$780,707**  **NET ASSETS** Beginning of year8,472,4247,691,717 End of Year$8,531,448$8,472,424 Undistributed        net investment income80-**Shares          of the Fund sold and redeemed** Number of shares sold218,971298,944 Number of shares issued in reinvestment of dividends49,41541,311  268,386340,255 Number of shares redeemed(221,568)(178,689)**Net increase in number          of shares outstanding****46,818****161,566**
*(The accompanying      notes are an integral part of these financial statements.)*
6Idaho Tax-Exempt Fund Annual Report November 30, 2005
(graphic omitted)

***Discussion        of Fund Performance (unaudited)***

**FISCAL YEAR 2005**  For the year ending November 30, 2005, Idaho Tax-Exempt Fund provided a total  return of 1.64%. Higher interest rates meant that as of November 30, 2005,  the thirty-day SEC current yield was 3.84% up from 2.72% one year ago. At November  30, 2005, the Fund held Morningstar’s* overall “3-star” rating  (judged against 330 funds in the Muni Single State Intermediate-term category).  Consistent with the Fund’s conservative investment philosophy, the Fund’s  price ranged between $5.27 and $5.43 per share (a 3% variation from low to  high). 

**FACTORS AFFECTING PAST PERFORMANCE**
**Ratings          Established****By Adviser****By Standard & Poor's****By Moody's          Investor Services**AAA80.8%40.5%83.1%AA4.8%4.5%1.7%A13.7%4.1%3.6%BBB0.0%0.0%0.0%Unrated0.0%50.2%10.9%Other Assets0.7%0.7%0.7%
Over the last twelve months, bond    managers and the US Federal Reserve Bank have continued to grapple with the    conundrum of rising inflation, rising short term rates and long rates that    refuse to go up. In brief, the global demand for US Government issued securities    is greater than the supply. Yields on long U.S. government securities are    some of the highest in the world which further amplifies foreign demand.    The nature of this foreign demand is less sensitive to U.S. inflation concerns    than most domestic bond investors and the forces generating this demand,    such as a strengthening U.S. dollar, are expected to continue. 

For the year,    short–term AAA general obligation yields rose 1.10% for two year paper,    0.60% for five year paper and only 0.25% for ten year paper. This means short-term    securities underperformed long-term securities and the Fund’s conservative    short average maturity reduced comparative total return. The average maturity    of the Fund is the most influential factor affecting principal values in    the portfolio. The Fund average maturity is now 6.04 years up from 5.59 years    last November. This is the short end of its “normal” six to fifteen    year range. The Fund chose to err on the side of caution and chose the shorter    average maturity. The table shows the distribution of the portfolio by quality    ratings (note that S&P does not rate many Idaho bonds).

Idaho’s State and local issuer budgets are improving compared    to one year ago as the State’s economy has grown above the national    average in 2005. 2005 State revenue is also growing above original forecasts.    Booming State exports of electronic components continued in 2005. Construction    continues to defy forecasts of a slow down. Overall State employment growth    is also above the national average. However, Idaho’s lumber and mining    industries remain a structural decline. 

Idaho’s relatively high state    income tax rates (the maximum 7.8% tax rate is reached at $21,730 of taxable    income for single filers) create a substantial appetite among residents for    tax-exempt bonds. The imbalance between the demand for and the supply of    new issues is an important element in the overall performance of Idaho paper    in both bull and bear markets. In 2005, high-grade municipal bonds generally    out-performed US Treasuries. The relative stability of prices in periods    of rising rates is one of the primary attractions of Idaho municipal bonds    for all investors.

**LOOKING FORWARD**  The US economy is strong and expanding, although higher interest rates and      energy costs are slowing growth. For 2006, we expect corporate profits      to increase 7% to 13%. The threat of rising US inflation will keep upward      pressure on short-term rates for another six to twelve months, as the Federal      Reserve continues to increase short-term rates to 5% - probably in slower      steps. We do not expect a prolonged yield curve inversion or a recession.   Strong competition between municipal bond insurers and the Idaho School Bond  Guarantee Program will reduce availability of new issue non-rated paper. The  yield advantage of quality uninsured paper can be attractive, but the supply  has dwindled to a trickle. 5.9% of the portfolio remains invested in non-rated  paper down from 6.9%. 

**COMPARISON TO INDEX**  The graph below compares the Fund‘s performance to the performance of  the Lehman Brothers Composite Municipal Bond Index, a broad-based municipal  bond market index.   The graph shows that $10,000 invested in the Idaho Tax Exempt Fund on 11/30/95  would have grown to $15,560 at the end of November 2005. If $10,000 could have  been invested in the Lehman Brothers Composite Municipal Bond Index on 11/30/95,  it would have grown to $17,447.

***Idaho Tax-Exempt vs. Lehman Composite        Municipal Bond Index (unaudited)***

(graph omitted)

Fund Average Annual Returns  One Year 1.64%  Five Year 4.56%  Ten Year 4.53%

***Morningstar****(trademark)*

***Source: Morningstar 11/30/05**. Past performance does not guarantee        future results. For each fund with at least a three-year history, Morningstar        calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted        Return measure that accounts for variation in a fund’s monthly        performance (including the effects of sales charges, loads and redemption        fees), placing more emphasis on downward variations and rewarding consistent        performance. The top 10% in each category receive 5 stars, the next 22.5%        4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom        10% receive 1 star. The Overall Morningstar Rating™ for a fund        is derived from a weighted average of performance figures associated        with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Idaho Tax-Exempt Fund was 174th of 330 Municipal Single State Intermediate            Funds in the last 3 years, 139th of 291 funds in the last 5 years            and 91st of 218 funds in the last 10 years. With respect to these            Municipal Single State Intermediate funds, Idaho Tax-Exempt received            a Morningstar Rating of 3, 3 and 3 for the 3-, 5- and 10-year periods            ended 11/30/05, respectively.
Idaho Tax-Exempt Fund Annual Report November 30, 2005 *7*
(graphic    omitted)

***Expenses (unaudited)***

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 example is based on an investment of $1,000 invested at the beginning of      the fiscal year and held for six months [Wednesday, June 1, 2005 to Wednesday,      November 30, 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 $8,600 account      value divided by $1,000 = 8.6), then multiply the result by the number      in the first line under the 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 does not have any such transaction 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. 
 **Beginning Account Value        [Wednesday, June 1, 2005]****Ending Account Value        [Wednesday, November 30,2005]****Expenses Paid During Period***Actual      (1.66% return after expenses)$1,000.00$1,016.60$4.14Hypothetical      (5% return before expenses)$1,000.00$1,020.96$4.15
* Expenses are equal to Idaho Tax-Exempt    Bond Fund’s annualized expense ratio of 0.82% (based on the most recent    semi-annual period of June 1, 2005 through November 30, 2005, multiplied    by the average account value of $1,008.20 over the period multiplied by 183/365    (to reflect the one-half year period).

 

___________________________________

With the Idaho Tax-Exempt Fund, unlike many mutual funds,    you do not incur sales charges (loads) on purchase payments, reinvested dividends,    or other distributions. You do not incur redemption fees, exchange fees,    or fees related to Individual Retirement Accounts. However, to discourage    speculative trading, you may incur a penalty for redemption of shares held    less than 30 days. 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.

 
8Idaho Tax-Exempt Fund Annual Report November 30, 2005
***Notes To Financial Statements***

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

The investment objective    of the Fund is to provide income free from federal income, federal alternative    minimum and Idaho state income taxes, with a secondary objective of capital    preservation.

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

**Security valuation:**  Fixed-income securities for which there are no publicly available market quotations      are valued using matrices based on maturity, quality, yield, call features      and similar factors, which are compared periodically to multiple dealer      bids and adjusted by the adviser under fair value policies established      by the Trustees. The ability of issuers of debt securities held by the      Fund to meet their obligations may be affected by economic and political      developments in the State of Idaho.

**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 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.      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 accounting principles      generally accepted in the United States of America 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. 

**Other:**  The cost of securities is the same for accounting and Federal income tax purposes.      Securities transactions are recorded on trade date.  Interest income is recognized on an accrual basis. Discounts and premiums on  securities purchased are amortized over the lives of the respective securities.   Expenses incurred by the Trust on behalf of the Fund (e.g., professional fees)  are allocated to the Fund and the other Funds of the Trust on the basis of  relative daily average net assets.

**Note 3—Transactions with Affiliated Persons**  Under a contract approved by shareowners on October 12, 1990, Saturna Capital      Corporation provides investment advisery services and certain other administrative      and distribution services to conduct the Fund’s business. For such      services, the Fund pays an annual fee equal to .50% of average daily net      assets. For the year ended November 30, 2005, the Fund incurred advisery      fee expenses of $42,315. 

In accordance with the Fund’s agreement with its custodian,    National City Bank of Indiana, for the year ended November 30, 2005, custodian    fees incurred by the Fund amounted to $1,982. The custodian waived $1,960    of its fees for earnings credits.

Saturna Brokerage Services, Inc. (a subsidiary of Saturna Capital    Corporation) is 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 year ended November 30,    2005, the Fund paid shareholder servicing fees of $4,150.

One trustee, who also serves as the president    of the Trust, is a director and president of the Adviser. On November 30,    2005, the trustees, officers and their immediate families as a group owned    0.05% of the outstanding shares of the Fund.

The four unaffiliated trustees receive $300    per Board or committee meeting attended, plus travel expenses, allocated    pro-rata to the five Funds of Saturna Investment Trust. The Trust paid the    Independent Trustees $8,627 to attend meetings during the fiscal year. Regulations    require the Trust to designate a Chief Compliance Officer; Mr. Winship was    retained by the Trust and paid $13,163 during the fiscal year. The other    officers are paid by Saturna Capital, and not the Trust.

The Trustees have adopted    certain policies and procedures with respect to frequent trading of Fund    shares. The Funds are intended for long-term investment and do not permit    rapid trading of their shares. Shares held less than 30 calendar days, including    those held in omnibus accounts at intermediaries, will be assessed a 2% early-redemption    penalty (payable to the Fund).

**Note 4—Investments**  During the year ended November 30, 2005, the Fund purchased $1,922,150 of securities      and sold/matured $1,745,516 of securities.

Distributions to shareowners:  The tax character of distributions paid during the years ended November 30,      2005 and 2004 were as follows:
 20052004Tax-Exempt Income$302,222$280,630Taxable Income-399Capital Gains25,992-
  (continued next page) 
Idaho Tax-Exempt Fund Annual Report November 30, 2005 *9*
***Notes        To Financial Statements (unaudited)***

**Note 4—Investments      (continued)**

As of November 30, 2005 the components of    capital on a tax basis were as follows:
Cost of investments$8,178,702Gross unrealized        appreciation 120,277Gross unrealized        depreciation(50,718)Net unrealized appreciation$69,559Undistributed ordinary income80Capital loss carryforward(            - )Total distributable earnings$ 80Total accumulated earnings/losses$69,639
  (a) At November 30, 2005, the basis of investments for federal income tax purposes  does not differ from the cost of financial reporting purposes.

 

***Renewal          of Investment Advisery Contract (unaudited)*****  On September 24, 2005, the trustees of Saturna Investment Trust approved continuation  of Idaho Tax-Exempt Fund’s investment advisery and administrative services  agreement with Saturna Capital Corporation. In doing so, the board considered  a number of factors and made specific determinations relevant to that approval. 

In addition to information provided throughout the year,    the trustees utilized a comparison of performance and fees of the Fund with    the other Idaho tax-exempt mutual fund and a comparative analysis of the    Fund prepared by Lipper. The trustees found such information helpful in establishing    expectations regarding the performance of the adviser and whether to continue    the advisery contract.

In their review, the trustees noted that the Fund offers a full range    of high-quality investor services. The Trustees reviewed improvements in    Saturna’s operations during the last year, and its increasing assets    under management from other Saturna mutual funds. An important factor in    the consideration by the trustees was the adviser’s ability and commitment    to internally perform shareowner servicing, administration, accounting, marketing    and distribution to maintain quality servicing at a reasonable expense.

The trustees also reviewed    Morningstar and Lipper mutual fund ratings, and found that the investment    performance of the Fund was acceptable. The board took into consideration    the investment objectives and policies of the Fund.

The trustees reviewed    the fees and expenses of the Fund. They noted that the adviser’s fees    are customary, fair and reasonable to shareowners. They considered the fees    charged by the adviser to other kinds of accounts and the different services    provided to those accounts. In addition, the trustees found the expense ratio    was less than that of the other Idaho tax-exempt fund and to be advantageous    to shareowners given the sizes of the funds, services provided and expenses    incurred. They took into consideration the adviser’s avoidance of operational    problems and its diligence in complying with increased investment company    rules and regulations. 

The trustees found that    the Fund continues to operate at a loss to the adviser. They know the adviser    is relatively small, with operational profit or loss dependent upon market    cycles. The trustees did not find any fall-out benefits from the Fund to    the adviser. 

 

***Availability          of Fund Portfolio Information (unaudited)***  (1) The 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.

 

***Privacy Statement          (unaudited)***

At Saturna Capital, we understand the importance    to you in maintaining the privacy of your financial information. To that    end, we want to assure you that we protect the confidentiality of any personal    information you share with us.

We collect personal information about you    from information we receive from you on applications and other forms and    from transactions or trades placed with us. Please be assured that except    to administer a transaction with an affiliated third party upon your request,    we do not disclose any personal information about our customers, or our former    customers, to anyone, except as may be required by law. We maintain our own    technology resources to minimize the use of outside service providers.

Additionally, Saturna Capital restricts access to personal information    about you to those employees who need to know that information to provide    products or services to you. We maintain physical, electronic, and procedural    safeguards that comply with regulations to guard your personal information.    If you have further questions or concerns about the security or privacy of    the information we receive from you, please call us at 800 / SATURNA.
10Idaho Tax-Exempt Fund Annual Report November 30, 2005***Trustees and              Officers (unaudited)***
**Name (age)        Address**
**Position(s)          held with      Trust and Length of       Time Served****Principal Occupation(s) during past 5 Years****Number of Portfolios in      Saturna Fund Complex      overseen by Trustee****Other Directorships      Held by Trustee*****Independent Trustees***Gary A. Goldfogel, MD (47)      1500 N. State Street      Bellingham, WA 98226Independent          Trustee        (since 1995)Medical Examiner (pathologist)        Owner, Avocet Environmental Testing (laboratory)FiveNoneHerbert G. Grubel        (71)      Apt. 1202 - 125 West Second St.      North Vancouver, BC      Canada, V7M 1C5 Independent Trustee        (since 2005)Senior Fellow, Fraser Institute; Professor          (Emeritus) of Economics, Simon Fraser University; AuthorFiveNoneJohn E. Love (73)      1002 Spokane Street      Garfield, WA 99130Chairman;        Independent Trustee        (since 1987)Owner, J.E. Love Co., (agricultural equipment manufacturer)FiveNoneJohn S. Moore (74)      346 Bayside Road      Bellingham, WA 98225Independent Trustee        (since 1993)Professor (now        retired), College of Business and Economics, Western Washington UniversityFiveNone***Interested Trustee***Nicholas F. Kaiser, CFA (59)      1300 N. State Street      Bellingham, WA 98225President; Trustee*        (since 1989)President, Saturna Capital Corporation        President, Saturna Brokerage ServicesSevenAmana Mutual Funds          Trust***Officers Who Are Not Trustees***Phelps S. McIlvaine (52)      1300 N. State Streeet      Bellingham, WA 98225Vice President        (since 1994)Vice President, Saturna Capital Corporation        Treasurer, Saturna Brokerage ServicesN/AN/AChrisopher R. Fankhauser (33)      1300 N. State Street      Bellingham, WA 98225Treasurer*        (since 2002)Manager of Operations, Saturna Capital CorporationN/AN/AEthel B. Bartolome (33)      1300 N. State Street      Bellingham, WA 98225Secretary*        (since 2001)Corporate Administrator,        Saturna Capital Corporation [since 2000]       Administrator, Cytel Corporation [1994-1999]N/AN/AJames D. Winship (57)      5406 Diamond Place NE      Bainbridge Island, WA 98110Chief Compliance Officer*        (since 2004)Attorney; Adjunct        Professor, University of Washington and Seattle Pacific Univeristy (1999-2003)N/AN/A
Term of Office:          Each Trustee serves for the lifetime of the Trust or until he dies,          resigns, is removed, or not re-elected by the shareowners. Each officer          serves a one-year term subject to annual reappointment by the Trustees.        The Fund’s Statement of Additional Information, available without        charge by calling Saturna Capital at 800-SATURNA, includes additional        information about the Trustees.        Saturna Capital Corporation is the Fund’s adviser and Saturna Brokerage        Services, Inc. is the Fund’s distributor.         Mr. Kaiser is an interested person of the Fund by reason of his positions        with the Fund’s adviser and distributor.         Mr. McIlvaine is the primary manager of the Idaho Tax-Exempt Fund.        *Mr. Grubel became a Trustee on December 14, 2005.        *Holds same position with Amana Mutual Funds Trust.
Idaho Tax-Exempt        Fund Annual Report November 30, 2005 *9*
(graphic omitted)

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. 

 

Saturna Capital (graphic omitted)  1300 N. State Street  Bellingham, WA 98225  www.saturna.com  (800) SATURNA

**Item 2. Code of Ethics.**Registrant has adopted a code of ethics and is included with this  submission as Exhibit (a).**Item 3. Audit Committee Financial Expert.**(a) (1) (i) The Trustees of Saturna Investment Trust determined,    at their quarterly meeting of September 25, 2003, that the Trust has at least    one audit committee financial expert serving on its audit committee.   (a) (2) (ii) Mr. John Moore, an independent Trustee (as defined for investment  companies), was deemed qualified and agreed to serve.

**Item 4. Principal Accountant Fees and Services.***(a) Audit Fees*  For the fiscal years ending November 30, 2005 and 2004, the aggregate audit  fees billed for professional services rendered by the principal accountant  were $24,500 for each year.*(b) Audit-Related Fees*  For the fiscal years ending November 30, 2005 and 2004, the aggregate audit-related  fees were $18,500 respectively. The nature of the services  are: (1) auditing of the statements of assets and liabilities, related statements  of  operations  and changes in net assets, and the financial highlights of each of the Funds;  (2) auditing and reporting on the financial statements to be included in the  Amendment to the Funds’ Registration Statement, Form N-1A, to be filed  with the Securities and Exchange Commission; (3) review of the Amendment to  the Registration Statement; and (4) issuance of a Report on Internal Control  Structure for inclusion in Form N-SAR.*(c) Tax Fees*  For the fiscal years ending November 30, 2005 and 2004, the aggregate tax fees  billed for professional services rendered by the principal accountant were  $6,000 for each year. Service includes preparation  of the Funds’ federal  and state income tax returns.*(d) All Other Fees*  There were no other fees billed by the principal accountant for the fiscal  years ending November 30, 2005 and 2004.*(e)(1) Audit Committee Pre-Approval Policies and Procedures*  The following is an excerpt from the Amana Mutual Funds Trust Audit Committee  Charter:  D. Oversight of Independent Auditors  3. Pre-approval of Audit and Non-Audit Services. Except as provided below,  the Committee’s prior approval is necessary for the engagement of the  independent auditors to provide any audit or non-audit services for the Trust  and any non-audit services for any entity controlling, controlled by or under  common control with Saturna that provides ongoing services to the Trust (Saturna  and each such entity, an “Adviser Affiliate”) where the engagement  relates directly to the operations or financial reporting of the Trust. Non-audit  services that qualify under the de minimis exception described in the Securities  Exchange Act of 1934, as amended, and applicable rules thereunder, that were  not pre-approved by the Committee, must be approved by the Committee prior  to the completion of the audit. Pre-approval by the Committee is not required  for engagements entered into pursuant to (a) pre-approval policies and procedures  established by the Committee, or (b) pre-approval granted by one or more members  of the Committee to whom, or by a subcommittee to which, the Committee has  delegated pre-approval authority, provided in either case, that the Committee  is informed of each such service at its next regular meeting.*(e) (2) Percentages of Services*  One hundred percent of the services described in each of paragraphs (b) through  (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C)  of Rule 2-01 of Regulation S-X.*(f) Not applicable.**(g) Not applicable.  (h) Not applicable.***Item 5. Audit Committee of Listed Registrants.***Not applicable.***Item 6. Schedule of Investments**  The schedule is included as part of the report to shareholders filed under  Item 1 of this Form.

**Item 7. Disclosure of Proxy Voting Policies      and Procedures for Closed-End Management Investment Companies.***Not applicable.*

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.***Not applicable.*

**Item 9. Purchases of Equity Securities by Closed-End Management Investment      Company and Affiliated Purchasers.***Not applicable.*

**Item 10. Submission of Matters to a Vote of      Security Holders.***Not applicable.*

**Item 11. Controls and Procedures.**(a) Internal control over financial reporting is under the supervision  of the principal executive and financial officers. On December 29, 2005, Mr.  Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed  the internal control procedures for Saturna Investment TrustFunds Trust and  found them reasonable and adequate.

(b) No change.

**Item 12. Exhibits**Exhibits included with this filing:  (a) Code of Ethics.  (b) Certifications.  (1) Nicholas Kaiser, President, Saturna Investment Trust  (2) Christopher Fankhauser, Treasurer, Saturna Investment Trust

**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: January 26, 2006  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 26, 2006  By:  /s/ Christopher Fankhouser   Christopher Fankhouser, Treasurer  Date: January 26, 2006

 

 

 

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