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, 2012  Date of reporting period: August 31, 2012

 

 

**Item 1. Schedule of Investments**

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

| **Saturna Investment Trust, Sextant Short Term Bond Fund**          |
|---------------------------------------------------------------------|
| **Issuer**                                                          | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                                                     |  |  |  |  |
| **Certificate of Deposit – 3.4%**                             |   |   |   |   |
| **Financials – 3.4%**                                         |
| **Consumer Finance**                                                |  |  |  |  |
| American Express Bank Med.   Term CD                                | 4.75% due 12/24/2013 | $220,000 | $231,421 | 3.4% |
|                                                                     |  | **220,000** | **231,421** | **3.4%** |
|                                                                     |  |  |  |  |
|                                                                |
| **Corporate Bonds – 59.9%**                                   |
| **Communications – 9.7%**                                     |
| **Telecom Carriers**                                                |
| America Movil Sab De CV                                             | 2.375% due 09/18/2016 | 250,000 | 259,601 | 3.8% |
| Deutsche Telecom Int. Fin.                                          | 5.25% due 07/22/2013 | 250,000 | 259,765 | 3.9% |
| Verizon New England                                                 | 4.75% due 10/01/2013 | 129,000 | 134,658 | 2.0% |
|                                                                     |  | **629,000** | **654,024** | **9.7%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Consumer Discretionary – 2.7%**                             |
| **Home Improvement**                                                |  |  |  |  |
| Stanley Works                                                       | 4.90% due 11/01/2012 | 180,000 | 181,009 | 2.7% |
|                                                                     |  | **180,000** | **181,009** | **2.7%** |
|                                                                     |  |  |  |  |
|                                                                |
| **Consumer Staples – 8.6%**                                   |
| **Beverages**                                                       |  |  |  |  |
| Coca Cola Hellenic                                                  | 5.125% due 09/17/2013 | 100,000 | 103,098 | 1.5% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Food Manufacturing**                                              |  |  |  |  |
| Sara Lee                                                            | 2.75% due 09/15/2015 | 245,000 | 252,971 | 3.8% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Household Products Manufacturing**                                |  |  |  |  |
| Clorox                                                              | 5.00% due 01/15/2015 | 200,000 | 217,896 | 3.3% |
|                                                                     |  | **545,000** | **573,965** | **8.6%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Energy – 9.1%**                                             |
| **Exploration & Production**                                    |  |  |  |  |
| Encana                                                              | 4.75% due 10/15/2013 | 100,000 | 103,921 | 1.6% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Integrated Oils**                                                 |  |  |  |  |
| SeaRiver Maritime                                                   | 0.00% due 09/01/2012 | 202,000 | 202,000 | 3.0% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Midstream – Oil & Gas**                                 |  |  |  |  |
| Kinder Morgan Energy Partners                                       | 5.00% due 12/15/2013 | 100,000 | 105,069 | 1.6% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Oil & Gas Services**                                          |  |  |  |  |
| Noble                                                               | 5.875% due 06/01/2013 | 190,000 | 196,895 | 2.9% |
|                                                                     |  | **592,000** | **607,885** | **9.1%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Financials – 13.8%**                                        |
| **Banks**                                                           |  |  |  |  |
| PNC Funding                                                         | 5.40% due 06/10/2014 | 200,000 | 216,135 | 3.2% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Investment Management**                                           |  |  |  |  |
| Blackrock                                                           | 3.50% due 12/10/2014 | 250,000 | 266,326 | 4.0% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Life Insurance**                                                  |  |  |  |  |
| Protective Life Secured Trust                                       | 5.00% due 05/15/2013 | 200,000 | 204,215 | 3.0% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Retail REIT**                                                     |  |  |  |  |
| Simon Property Group                                                | 5.10% due 06/15/2015 | 220,000 | 242,119 | 3.6% |
|                                                                     |  | **870,000** | **928,795** | **13.8%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Health Care – 6.0%**                                        |
| **Health Care Supply Chain**                                        |  |  |  |  |
| Express Scripts                                                     | 6.25% due 06/15/2014 | 100,000 | 109,253 | 1.6% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **Large Pharmaceuticals**                                           |  |  |  |  |
| Abbott Laboratories                                                 | 5.60% due 11/30/2017 | 240,000 | 294,280 | 4.4% |
|                                                                     |  | **340,000** | **403,533** | **6.0%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Industrials – 1.5%**                                        |
| **Power Generation Equipment**                                      |  |  |  |  |
| General Electric Capital                                            | 5.25% due 10/19/2012 | 100,000 | 100,573 | 1.5% |
|                                                                     |  | **100,000** | **100,573** | **1.5%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Materials – 2.5%**                                          |
| **Base Metals**                                                     |  |  |  |  |
| Rio Tinto Finance                                                   | 8.95% due 05/01/2014 | 150,000 | 169,848 | 2.5% |
|                                                                     |  | **150,000** | **169,848** | **2.5%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Technology – 6.0%**                                         |
| **Infrastructure Software**                                         |  |  |  |  |
| Oracle                                                              | 3.75% due 07/08/2014 | 250,000 | 265,432 | 4.0% |
|                                                                     |  |  |  |  |
|                                                                |  |  |  |  |
| **IT Services**                                                     |  |  |  |  |
| IBM                                                                 | 5.05% due 10/22/2012 | 135,000 | 135,873 | 2.0% |
|                                                                     |  | **385,000** | **401,305** | **6.0%** |
| **Total Corporate Bonds**                                           |  | **3,791,000** | **4,020,937** | **59.9%** |
|                                                                     |  |  |  |  |
|                                                                |
| **Foreign Government Bonds – 7.1%**                           |   |   |   |   |
| **Canadian Government**                                             |
| Canada Government                                                   | 2.375% due 09/10/2014 | 230,000 | 239,867 | 3.6% |
| Ontario Province Canada                                             | 4.10% due 06/16/2014 | 220,000 | 234,437 | 3.5% |
|                                                                     |  | **450,000** | **474,304** | **7.1%** |
|                                                                     |  |  |  |  |
|                                                                |
| **Municipal Bonds – 12.3%**                                   |   |   |   |   |
| **General Obligation – 8.2%**                                 |
| Commerce Charter Township MI                                        | 5.50% due 12/01/2013 | 125,000 | 131,145 | 2.0% |
| Manhattan KS                                                        | 3.276% due 12/01/2013 | 180,000 | 184,480 | 2.7% |
| Passaic NJ Taxable Pension GO                                       | 5.00% due 02/01/2013 | 100,000 | 100,246 | 1.5% |
| Southwestern MI Comm. College                                       | 4.875% due 05/01/2015 | 125,000 | 135,656 | 2.0% |
|                                                                     |  | **530,000** | **551,527** | **8.2%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| **Revenue – 4.1%**                                            |
| Dawson Springs KY ISD Bldg.1                                        | 3.60% due 08/01/2013 | 95,000 | 97,229 | 1.4% |
| Rhode Island Econ. Dev.                                             | 4.52% due 05/15/2013 | 175,000 | 178,790 | 2.7% |
|                                                                     |  | **270,000** | **276,019** | **4.1%** |
| **Total Municipal Bonds**                                           |  | **800,000** | **827,546** | **12.3%** |
|                                                                     |  |  |  |  |
|                                                                |
| **U.S. Government Bonds – 5.3%**                              |   |   |   |   |
| **Treasury Notes – 5.3%**                                     |
| United States Treasury Note                                         | 1.50% due 12/31/2013 | 350,000 | 355,961 | 5.3% |
|                                                                     |  | **350,000** | **355,961** | **5.3%** |
|                                                                     |  |  |  |  |
|                                                                |   |   |   |   |
| Total investments                                                   | (cost = $5,798,458) | $5,611,000 | 5,910,169 | 88.0% |
| Other assets (net of liabilities)                                   |  |   | 803,151 | 12.0% |
| **Total net assets**                                                |   |   | **$6,713,320** | **100.0%** |
| (1)   Indicates and odd lot. See note regarding odd lot securities. |

| **Saturna Investment Trust, Sextant Bond Income Fund** |
|--------------------------------------------------------|
|                                                        |
|                                                   |
| **Issuer**                                             | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Percentage of Assets** |
| **Corporate Bonds – 56.7%**                      |
| **Consumer Discretionary – 2.2%**                |
| **Auto Retail Stores**                                 |   |   |   |   |
| AutoZone                                               | 5.50% due 11/15/2015 | $95,000 | $107,073 | 1.4% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Home Improvement**                                   |   |   |   |   |
| Masco                                                  | 7.125% due 08/15/2013 | 60,000 | 62,612 | 0.8% |
|                                                        |  | **155,000** | **169,685** | **2.2%** |
|                                                        |  |  |  |  |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Consumer Staples – 4.1%**                      |
| **Mass Merchants**                                     |   |   |   |   |
| Wal**–**Mart Stores                              | 7.25% due 06/01/2013 | 45,000 | 47,233 | 0.6% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Pharmacies & Drug Stores**                       |   |   |   |   |
| CVS Caremark Corp                                      | 6.25% due 06/01/2027 | 200,000 | 260,401 | 3.5% |
|                                                        |  | **245,000** | **307,634** | **4.1%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Energy – 13.9%**                               |
| **Exploration & Production**                       |   |   |   |   |
| Canadian Natural Resources                             | 6.45% due 06/30/2033 | 225,000 | 289,729 | 3.8% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Integrated Oils**                                    |   |   |   |   |
| ConocoPhillips                                         | 6.00% due 01/15/2020 | 150,000 | 190,720 | 2.5% |
| SeaRiver Maritime                                      | 0.00% due 09/01/2012 | 225,000 | 225,000 | 3.0% |
| StatoilHydro                                           | 2.90% due 10/15/2014 | 200,000 | 210,240 | 2.8% |
|                                                   |   | **575,000** | **625,960** | **8.3%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Oil & Gas Services**                             |   |   |   |   |
| Baker Hughes                                           | 6.875% due 01/15/2029 | 100,000 | 136,212 | 1.8% |
|                                                        |  | **900,000** | **1,051,901** | **13.9%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Financials – 11.5%**                           |
| **Banks**                                              |   |   |   |   |
| Bank of Nova Scotia Yankee                             | 3.00% due 11/16/2026 | 250,000 | 249,278 | 3.3% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Institutional Brokerage**                            |   |   |   |   |
| Morgan Stanley Dean Witter                             | 6.75% due 10/15/2013 | 50,000 | 52,460 | 0.7% |
| Paine Webber Group                                     | 7.625% due 02/15/2014 | 50,000 | 54,025 | 0.7% |
| UBS AG Stanford                                        | 7.75% due 09/01/2026 | 200,000 | 242,585 | 3.2% |
|                                                   |   | **300,000** | **349,070** | **4.6%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Property & Casualty**                            |   |   |   |   |
| Allstate                                               | 7.50% due 06/15/2013 | 50,000 | 52,685 | 0.7% |
| Progressive                                            | 7.00% due 10/01/2013 | 75,000 | 79,751 | 1.0% |
| St. Pauls Travelers Insurance                          | 5.50% due 12/01/2015 | 125,000 | 141,825 | 1.9% |
|                                                   |   | **250,000** | **274,261** | **3.6%** |
|                                                        |  | **800,000** | **872,609** | **11.5%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Health Care – 9.4%**                           |
| **Generic Pharmaceuticals**                            |   |   |   |   |
| Teva Pharmaceutical                                    | 3.65% due 11/10/2021 | 250,000 | 270,200 | 3.6% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Large Phamaceuticals**                               |   |   |   |   |
| Merck & Co. (Schering)                             | 6.50% due 12/01/2033 | 215,000 | 314,501 | 4.1% |
| Pharmacia                                              | 6.50% due 12/01/2018 | 100,000 | 127,360 | 1.7% |
|                                                   |   | **315,000** | **441,861** | **5.8%** |
|                                                        |  | **565,000** | **712,061** | **9.4%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Industrials – 5.9%**                           |
| **Agricultural Machinery**                             |   |   |   |   |
| Deere                                                  | 8.10% due 05/15/2030 | 95,000 | 150,625 | 2.0% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Commercial Aircraft**                                |   |   |   |   |
| Boeing                                                 | 6.125% due 02/15/2033 | 215,000 | 292,429 | 3.9% |
|                                                        |  | **310,000** | **443,054** | **5.9%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Materials – 2.9%**                             |
| **Basic & Diversified   Chemicals**                |   |   |   |   |
| Air Products & Chemicals                           | 8.75% due 04/15/2021 | 50,000 | 73,037 | 1.0% |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Raw Material Suppliers**                             |   |   |   |   |
| BHP Finance U.S.A.                                     | 5.25% due 12/15/2015 | 125,000 | 142,407 | 1.9% |
|                                                        |  | **175,000** | **215,444** | **2.9%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Technology – 1.0%**                            |
| **Consumer Electronics**                               |   |   |   |   |
| Phillips Electronics                                   | 7.25% due 08/15/2013 | 75,000 | 79,469 | 1.0% |
|                                                        |  | **75,000** | **79,469** | **1.0%** |
|                                                        |  |  |  |  |
|                                                   |   |   |   |   |
| **Utilities – 5.8%**                             |
| **Integrated Utilities**                               |   |   |   |   |
| Commonwealth Edison                                    | 7.50% due 07/01/2013 | 50,000 | 52,775 | 0.7% |
| Entergy Louisiana                                      | 5.40% due 11/01/2024 | 200,000 | 247,145 | 3.3% |
| Florida Power & Light                              | 5.95% due 10/01/2033 | 100,000 | 135,086 | 1.8% |
|                                                   |   | **350,000** | **435,006** | **5.8%** |
| **Total Coporate Bonds**                               |  | **3,575,000** | **4,286,863** | **56.7%** |
|                                                        |  |  |  |  |
|                                                   |
| **Foreign Government Bonds – 3.3%**              |   |   |   |   |
| **Canadian Government – 3.3%**                   |
| Quebec Canada Yankee                                   | 7.125% due 02/09/2024 | 175,000 | 247,259 | 3.3% |
|                                                   |   | **175,000** | **247,259** | **3.3%** |
|                                                   |
| **Municipal Bonds – 31.9%**                      |   |   |   |   |
| **General Obligation – 19.1%**                   |
| City of Burlington Taxable GO   2009 Series B          | 5.75% due 11/01/2028 | 160,000 | 177,640 | 2.3% |
| Dell Rapids SCD #49**–**3                        | 6.257% due 01/15/2030 | 200,000 | 223,852 | 3.0% |
| Dupage Co. Il CCD #502                                 | 5.50% due 01/01/2026 | 150,000 | 168,164 | 2.2% |
| Idaho Hsg. & Fin. GARVEE   BAB A-2                 | 5.379% due 07/15/2020 | 180,000 | 212,078 | 2.8% |
| Milan Co. MI Area Schools                              | 6.45% due 05/01/2024 | 150,000 | 174,451 | 2.3% |
| San Marcos Texas ULTD GO BAB                           | 6.028% due 8/15/2030 | 200,000 | 227,450 | 3.0% |
| Springville UT GO BAB                                  | 5.30% due 05/01/2031 | 240,000 | 261,298 | 3.5% |
|                                                   |   | **1,280,000** | **1,444,933** | **19.1%** |
|                                                   |   |   |   |   |
| **Revenue – 12.8%**                              |
| American Municipal Power Ohio Rev.                     | 7.20% due 02/15/2029 | 250,000 | 327,575 | 4.3% |
| Graves Co. KY SCD Bldg. Lease Rev.                     | 5.95% due 06/01/2024 | 150,000 | 167,903 | 2.2% |
| Johnson Co. KS Bldg. Ls./Pr.   REV. BAB                | 4.60% due 09/01/2026 | 250,000 | 270,940 | 3.6% |
| Oklahoma City Fin. Auth. Ed.   Lease Rev.              | 6.60% due 09/01/2022 | 160,000 | 200,262 | 2.7% |
|                                                   |   | **810,000** | **966,680** | **12.8%** |
| **Total municipal bonds**                              |   | **2,090,000** | **2,411,613** | **31.9%** |
|                                                   |   |   |   |   |
| Total investments                                      | (cost = $6,257,851) | $5,840,000 | 6,945,735 | 91.9% |
| Other assets (net of   liabilities)                    |   |   | 609,387 | 8.1% |
| **Total net assets**                                   |   |   | **$7,555,122** | **100.0%** |

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