UNITED STATES   SECURITIES AND EXCHANGE COMMISSION  Washington, DC 20549**FORM N-Q****QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED  MANAGEMENT INVESTMENT COMPANY**  Investment Company Act file number: 811-05071**SATURNA INVESTMENT TRUST**  (Exact Name of Registrant as Specified in Charter)**1300 N. State Street  Bellingham, Washington 98225-4730**  (Address of Principal Executive Offices, including ZIP Code)  Nicholas F. Kaiser  1300 N. State Street  Bellingham, Washington 98225-4730  (Name and Address of Agent for Service)  Registrant’s Telephone Number- (360) 734-9900  Date of fiscal year end: November 30, 2014  Date of reporting period: February 28, 2014

 

 

**Item 1. Schedule of Investments**

The unaudited schedule of investments as of the close of the reporting  period are as follows:

| **Saturna Investment Trust, Sextant Short Term Bond Fund** |
|------------------------------------------------------------|
|                                                       |
| **Corporate Bonds**                                        | **Coupon/Maturity** | **Face Amount** | **Market  Value** | **Percentage of Assets** |
| **Communications**                                         |
| **Telecom Carriers**                                       |   |
| America Movil Sab De CV                                    | 2.375% due 09/08/2016 | $250,000 | $258,250 | 3.7% |
|                                                       |   | **250,000** | **258,250** | **3.7%** |
|                                                       |
| **Consumer Discretionary**                                 |   |
| **Apparel, Footwear, Accessory  Design**                   |   |
| Cintas Corp No. 2                                          | 6.125% due 12/01/2017 | 270,000 | 310,175 | 4.4% |
|                                                       |
| **Automobile OEM**                                         |   |
| American Honda                                             | 1.50% due 09/11/2017 | 250,000 | 251,492 | 3.6% |
| Toyota Motor Credit                                        | 1.25% due 10/05/2017 | 226,000 | 225,402 | 3.2% |
|                                                       |   | 476,000 | 476,894 | 6.8% |
|                                                       |   | **746,000** | **787,069** | **11.2%** |
|                                                       |
| **Consumer Staples**                                       |   |
| **Beverages**                                              |   |
| Coca Cola Hellenic                                         | 5.50% due 09/17/2015 | 175,000 | 186,052 | 2.6% |
|                                                       |
| **Food Manufacturing**                                     |   |
| Sara Lee                                                   | 2.75% due 09/15/2015 | 245,000 | 252,485 | 3.6% |
|                                                       |
| **Household Products  Manufacturing**                      |   |
| Clorox                                                     | 5.00% due 01/15/2015 | 200,000 | 207,624 | 3.0% |
|                                                       |   | **620,000** | **646,161** | **9.2%** |
|                                                       |
| **Energy**                                                 |   |
| **Exploration & Production**                           |   |
| Enbridge (Pipeline)                                        | 5.60% due 04/01/2017 | 200,000 | 224,812 | 3.2% |
| Petrobras International Finance                            | 6.125% due 10/06/2016 | 250,000 | 269,375 | 3.8% |
|                                                       |   | 450,000 | 494,187 | 7.0% |
|                                                       |
| **Power Generation**                                       |   |
| Georgia Power                                              | 5.70% due 06/01/2017 | 250,000 | 284,552 | 4.0% |
|                                                       |
| **Refining & Marketing**                               |   |
| Ultramar Diamond Shamrock                                  | 7.20% due 10/15/2017 | 189,000 | 216,485 | 3.1% |
|                                                       |   | **889,000** | **995,224** | **14.1%** |
|                                                       |
| **Financials**                                             |   |
| **Banks**                                                  |   |
| BNP Paribas                                                | 2.375% due 09/14/2017 | 250,000 | 257,085 | 3.7% |
| Murray Street Trust 1                                      | 4.647% due 03/09/2017 | 300,000 | 325,146 | 4.6% |
| PNC Funding                                                | 5.40% due 06/10/2014 | 200,000 | 202,642 | 2.9% |
|                                                       |   | 750,000 | 784,873 | 11.2% |
|                                                       |
| **Commercial Finance**                                     |   |
| General Electric Capital                                   | 5.625% due 09/15/2017 | 250,000 | 286,457 | 4.1% |
|                                                       |
| **Investment Management**                                  |   |
| BlackRock                                                  | 3.50% due 12/10/2014 | 250,000 | 256,040 | 3.6% |
|                                                       |
| **Payment & Data Processors**                          |   |
| Broadridge Financial Solutions                             | 6.125% due 06/01/2017 | 275,000 | 300,647 | 4.3% |
|                                                       |
| **Retail REITS**                                           |   |
| Simon Property Group                                       | 5.10% due 06/15/2015 | 220,000 | 232,798 | 3.3% |
|                                                       |   | **1,745,000** | **1,860,815** | **26.5%** |
|                                                       |
| **Industrials**                                            |   |
| **Electrical Components**                                  |   |
| ABB Finance                                                | 1.625% due 05/08/2017 | 250,000 | 249,992 | 3.6% |
|                                                       |
| **Rail Freight Transportation**                            |   |
| Burlington Northern Santa Fe                               | 5.65% due 05/01/2017 | 200,000 | 226,637 | 3.2% |
|                                                       |   | **450,000** | **476,629** | **6.8%** |
|                                                       |
| **Materials**                                              |   |
| **Base Metals**                                            |   |
| Rio Tinto Finance                                          | 8.95% due 05/01/2014 | 150,000 | 151,980 | 2.2% |
|                                                       |
| **Basic & Diversified  Chemicals**                     |   |
| Air Products & Chemicals                               | 1.20% due 10/15/2017 | 250,000 | 247,583 | 3.5% |
|                                                       |
| **Chemicals Distribution**                                 |   |
| Potash Corp of Saskatchewan                                | 3.25% due 12/01/2017 | 250,000 | 264,668 | 3.8% |
| Sherwin Williams                                           | 1.35% due 12/15/2017 | 250,000 | 246,848 | 3.5% |
|                                                       |   | 500,000 | 511,516 | 7.3% |
|                                                       |   | **900,000** | **911,079** | **13.0%** |
|                                                       |
| **Technology**                                             |   |
| **Infrastructure Software**                                |   |
| Oracle                                                     | 5.75% due 04/15/2018 | 250,000 | 290,233 | 4.1% |
|                                                       |   | **250,000** | **290,233** | **4.1%** |
|                                                       |
| **Utilities**                                              |   |
| **Oil & Gas Services**                                 |   |
| LaClede Gas                                                | 2.00% due 08/15/2018 | 300,000 | 298,964 | 4.2% |
|                                                       |   | **300,000** | **298,964** | **4.2%** |
|                                                       |
| **Total Corporate Bonds**                                  |   | **6,150,000** | **6,524,424** | **92.8%** |
|                                                       |
| **Municipal Government Bonds**                             | **Coupon/Maturity** | **Face Amount** | **Market  Value** | **Percentage of Assets** |
| **General Obligation**                                     |
| Southwestern MI Comm. College                              | 4.875% due 05/01/2015 | 125,000 | 129,784 | 1.8% |
|                                                       |   | **125,000** | **129,784** | **1.8%** |
|                                                       |
| **Revenue**                                                |   |
| Kansas City Special Facility Revenue                       | 4.25% due 09/01/2016 | 110,000 | 116,247 | 1.7% |
|                                                       |   | **110,000** | **116,247** | **1.7%** |
|                                                       |
| **Total Municipal Bonds**                                  |   | **235,000** | **246,031** | **3.5%** |
|                                                       |
| Total investments                                          | (Cost = $6,735,939) | $6,385,000 | 6,770,455 | 96.3% |
| Other assets (net of liabilities)                          |   |   | 258,869 | 3.7% |
| **Total net assets**                                       |   |   | **$7,029,324** | **100.0%** |

| **Saturna Investment Trust, Sextant Bond Income Fund** |
|--------------------------------------------------------|
|                                                   |
| **Corporate  Bonds**                                   | **Coupon/Maturity** | **Face Amount** | **Market Value** | **Percentage of Assets** |
| **Consumer Discretionary**                             |
| **Auto Retail Stores**                                 |   |
| AutoZone                                               | 5.50% due 11/15/2015 | $95,000 | $102,473 | 1.4% |
|                                                   |   | **95,000** | **102,473** | **1.4%** |
|                                                   |
| **Consumer Staples**                                   |   |
| **Pharmacies & Drug Stores**                       |   |
| CVS Caremark                                           | 6.25% due 06/01/2027 | 200,000 | 242,205 | 3.4% |
|                                                   |   | **200,000** | **242,205** | **3.4%** |
|                                                   |
| **Energy**                                             |   |
| **Exploration & Production**                       |   |
| Canadian Natural Resources                             | 6.45% due 06/30/2033 | 225,000 | 263,050 | 3.8% |
|                                                   |
| **Integrated Oils**                                    |   |
| ConocoPhillips                                         | 6.00% due 01/15/2020 | 150,000 | 179,069 | 2.5% |
| StatoilHydro                                           | 2.90% due 10/15/2014 | 200,000 | 203,233 | 2.8% |
|                                                   |   | 350,000 | 382,302 | 5.3% |
|                                                   |
| **Oil & Gas Services**                             |   |
| Baker Hughes                                           | 6.875% due 01/15/2029 | 100,000 | 132,101 | 1.8% |
|                                                   |   | **675,000** | **777,453** | **10.9%** |
|                                                   |
| **Financials**                                         |   |
| **Banks**                                              |   |
| Bank of Nova Scotia Yankee                             | 3.00% due 11/16/2026 | 250,000 | 243,705 | 3.4% |
|                                                   |
| **Institutional Brokerage**                            |   |
| UBS AG Stamford CT                                     | 7.75% due 09/01/2026 | 200,000 | 258,012 | 3.6% |
|                                                   |
| **Property & Casualty**                            |   |
| St. Pauls Travelers Insurance                          | 5.50% due 12/01/2015 | 125,000 | 135,612 | 1.9% |
|                                                   |   | **575,000** | **637,329** | **8.9%** |
|                                                   |
| **Health Care**                                        |   |
| **Generic Pharmaceuticals**                            |   |
| Teva Pharmaceutical                                    | 3.65% due 11/10/2021 | 250,000 | 250,155 | 3.5% |
|                                                   |
| **Large Pharmaceuticals**                              |   |
| Merck & Co. (Schering)                             | 6.50% due 12/01/2033 | 215,000 | 279,297 | 3.9% |
| Pharmacia                                              | 6.50% due 12/01/2018 | 100,000 | 121,094 | 1.7% |
|                                                   |   | 315,000 | 400,391 | 5.6% |
|                                                   |   | **565,000** | **650,546** | **9.1%** |
|                                                   |
| **Industrials**                                        |   |
| **Agricultural Machinery**                             |   |
| Deere & Co.                                        | 8.10% due 05/15/2030 | 95,000 | 137,404 | 1.9% |
|                                                   |
| **Commercial Aircraft**                                |   |
| Boeing                                                 | 6.125% due 02/15/2033 | 215,000 | 268,810 | 3.8% |
|                                                   |   | **310,000** | **406,214** | **5.7%** |
|                                                   |
| **Materials**                                          |   |
| **Basic & Diversified  Chemicals**                 |   |
| Air Products & Chemicals                           | 8.75% due 04/15/2021 | 50,000 | 65,621 | 0.9% |
|                                                   |
| **Raw Material Suppliers**                             |   |
| BHP Finance USA                                        | 5.25% due 12/15/2015 | 125,000 | 135,360 | 1.9% |
|                                                   |   | **175,000** | **200,981** | **2.8%** |
|                                                   |
| **Utilities**                                          |   |
| **Integrated Utilities**                               |   |
| Entergy Louisiana                                      | 5.40% due 11/01/2024 | 200,000 | 231,615 | 3.2% |
| Florida Power & Light                              | 5.95% due 10/01/2033 | 100,000 | 122,184 | 1.7% |
| Puget Sound Energy                                     | 7.02% due 12/01/2027 | 237,000 | 305,948 | 4.3% |
|                                                   |   | **537,000** | **659,747** | **9.2%** |
|                                                   |
| **Total Corporate Bonds**                              |   | **3,132,000** | **3,676,948** | **51.4%** |
|                                                   |
| **Foreign Government Bonds**                           | **Coupon/Maturity** | **Face  Amount** | **Market  Value** | **Percentage of Assets** |
| **Canadian Government**                                |
| Quebec Canada Yankee                                   | 7.125% due 02/09/2024 | 175,000 | 225,596 | 3.2% |
|                                                   |   | **175,000** | **225,596** | **3.2%** |
|                                                   |
| **Municipal Bonds**                                    | **Coupon/Maturity** | **Face  Amount** | **Market  Value** | **Percentage of Assets** |
| **General Obligation**                                 |   |
| Blaine Co. ID SCD #61 Hailey                           | 5.25% due 08/01/2020 | 250,000 | 280,908 | 3.9% |
| City of Burlington Taxable GO 2009 Series  B           | 5.75% due 11/01/2028 | 160,000 | 146,472 | 2.0% |
| Dell Rapids SCD 49-3                                   | 6.257% due 01/15/2030 | 200,000 | 220,824 | 3.1% |
| Dupage Co. IL SCD #502                                 | 5.50% due 01/01/2026 | 150,000 | 161,391 | 2.3% |
| Idaho Hsg. & Fin. GARVEE BAB A-2                   | 5.379% due 07/15/2020 | 180,000 | 200,144 | 2.8% |
| Milan Co. MI Area Schools                              | 6.45% due 05/01/2024 | 150,000 | 167,363 | 2.3% |
| San Marcos Texas ULTD GO BAB                           | 6.028% due 08/15/2030 | 200,000 | 213,840 | 3.0% |
| Springville UT GO BAB                                  | 5.30% due 05/01/2031 | 240,000 | 247,363 | 3.5% |
|                                                   |   | **1,530,000** | **1,638,305** | **22.9%** |
|                                                   |
| **Revenue**                                            |   |
| American Municipal Power Ohio Rev.                     | 7.20% due 02/15/2029 | 250,000 | 308,955 | 4.3% |
| Johnson Co. KS Bldg. Ls./Pr. Rev. BAB                  | 4.60% due 09/01/2026 | 250,000 | 255,948 | 3.6% |
| Oklahoma City Fin. Auth. Ed. Lease Rev.                | 6.60% due 09/01/2022 | 160,000 | 185,781 | 2.6% |
|                                                   |   | **660,000** | **750,684** | **10.5%** |
|                                                   |
| **Total Municipal Bonds**                              |   | **2,190,000** | **2,388,989** | **33.4%** |
|                                                   |
| **US Government Bonds**                                | **Coupon/Maturity** | **Face  Amount** | **Market  Value** | **Percentage of Assets** |
| **Treasury Notes**                                     |
| United States Treasury Note                            | 1.00% due 11/30/2019 | 400,000 | 382,625 | 5.3% |
|                                                   |   | **400,000** | **382,625** | **5.3%** |
|                                                   |
| Total investments                                      | (Cost = $6,376,375) | $5,897,000 | 6,674,158 | 93.3% |
| Other assets (net of liabilities)                      |   |   | 476,361 | 6.7% |
| **Total net assets**                                   |   |   | **$7,150,519** | **100.0%** |

| **Saturna Investment Trust, Sextant Core Fund** |
|-------------------------------------------------|