SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, DC 20549

# FORM N-CSR

### CERTIFIED SHAREHOLDER REPORT OF REGISTEREDMANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05071 or 33-13247

**SATURNA INVESTMENT TRUST**(Exact Name of Registrant as Specified in Charter)

**1300 N. State StreetBellingham, Washington 98225-4730**(Address of Principal Executive Offices, including ZIP Code)

**Nicholas F. Kaiser1300 N. State StreetBellingham, Washington 98225-4730**(Name and Address of Agent for Service)

Registrant's Telephone Number — (360) 734-9900

Date of fiscal year end: November 30, 2016Date of reporting period: November 30, 2016

### Item 1. Annual Report.

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# Sextant Mutual Funds

### Annual Report       November 30, 2016

| **Short-Term Bond**    | **STBFX** |
|------------------------|-----------|
|                   |
| **Bond Income**        | **SBIFX** |
|                   |
| **Core**               | **SCORX** |
|                   |
| **Global High Income** | **SGHIX** |
|                   |
| **Growth**             | **SSGFX** |
|                   |
| **International**      | **SSIFX** |

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| **Average Annual Total Returns as of December 31, 2016** | **1 Year** | **3 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
|----------------------------------------------------------|------------|------------|------------|-------------|-------------------------|
|                                                     |
| Sextant Short-Term Bond Fund                             | 1.47%      | 1.16%      | 0.91%      | 2.38%       | 1.21%                   |
| Citigroup Gov./Corp. Inv. Grade Index 1-3 Years          | 1.25%      | 0.85%      | 0.88%      | 2.42%       | n/a                     |
|                                                     |
|                                                     |
| Sextant Bond Income Fund                                 | 3.91%      | 3.62%      | 2.52%      | 4.20%       | 1.03%                   |
| Citigroup Broad Investment Grade Bond Index              | 2.66%      | 3.01%      | 2.22%      | 4.42%       | n/a                     |
|                                                     |
|                                                     |
| Sextant Core Fund                                        | 4.22%      | 1.84%      | 4.41%      | n/a         | 1.02%                   |
| Dow Jones Moderate US Portfolio Index                    | 7.68%      | 3.88%      | 7.37%      | 5.07%       | n/a                     |
|                                                     |
|                                                     |
| Sextant Global High Income Fund                          | 19.54%     | 2.37%      | n/a        | n/a         | 1.06%                   |
| S&P Global 1200 Index                                | 8.87%      | 4.43%      | 10.90%     | 4.50%       | n/a                     |
|                                                     |
|                                                     |
| Sextant Growth Fund                                      | -0.46%     | 3.35%      | 10.41%     | 5.13%       | 0.90%                   |
| S&P 500 Index                                        | 11.96%     | 8.87%      | 14.64%     | 6.94%       | n/a                     |
|                                                     |
|                                                     |
| Sextant International Fund                               | 7.11%      | -0.87%     | 2.51%      | 1.95%       | 1.05%                   |
| MSCI EAFE Index                                          | 1.51%      | -1.15%     | 7.01%      | 1.22%       | n/a                     |
|                                                     |

***Performance data quoted above represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results.** Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-800-728-8762 or visiting www.sextantfunds.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Funds that invest in foreign securities may involve greater risk, including political and economic uncertainties of foreign countries as well as the risk of currency fluctuations.*

***A note about risk:** Please see Notes to Financial Statements beginning on page 51 for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see the Fund's prospectus or each Fund's summary prospectus.*

*A Fund's 30-Day Yield, sometimes referred to as "standardized yield" or "SEC yield," is expressed as an annual percentage rate using a method of calculation adopted by the Securities and Exchange Commission (SEC). The 30-Day Yield provides an estimate of a Fund's investment income rate, but may not equal the actual income distribution rate.*

*1 By regulation, expense ratios shown in this table are as stated in the Funds' most recent prospectus, which is dated March 29, 2016, and incorporate results for the fiscal year ended November 30, 2015. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different periods. Also by regulation, the performance in this table represents the most recent quarter-end performance rather than performance through the Funds' most recent fiscal period.*

*The S&P 500 Index is an index comprised of 500 widely held common stocks considered to be representative of the US stock market in general. The MSCI EAFE Index is an international index focused on Europe, Australasia, and the Far East. The S&P Global 1200 Index is a global stock market index covering nearly 70% of the world's equity markets. The Bloomberg Global High Yield Corporate Bond Index is a rules-based, market-value weighted index engineered to measure the non-investment grade, fixed-rate, taxable, global corporate bond market. The Dow Jones Moderate Portfolio Index is a broad-based index of stock and bond prices. The Citi USBIG Govt/Corp Index 1-3 Year is a broad-based index of shorter-term investment grade US government and corporate bond prices. The Citi US Broad Investment-Grade Bond Index is a broad-based index of medium and long-term investment grade bond prices. Investors cannot invest directly in the indices.*

***Please consider an investment's objectives, risks, charges, and expenses carefully before investing. To obtain this and other important information about the Sextant Funds in a prospectus or summary prospectus, ask your financial advisor, visit  www.sextantfunds.com, or call toll-free 1-800-728-8762. Please read the prospectus or summary prospectus carefully before investing.***

| *2* | *November 30, 2016* | *Annual Report* |
|-----|---------------------|-----------------|

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### *Fellow Shareowners:*

During 2016 voters around the world hit out against globalization and liberal trade as nationalistic and populist forces ascended in the United States, Europe, and Asia. Stock markets smiled, however, gaining nicely almost everywhere but China, which we avoid as it's too opaque. For the Sextant Funds' fiscal year ended November 30, 2016, the S&P 500 stock index provided a total return of 8.06%. Four funds bested their benchmarks (often replicated in passive portfolios) for the fiscal year, led by the outstanding results of Sextant Global High Income and solid performance of Sextant International. Our traditional, investment-grade bond funds, Sextant Bond Income and Sextant Short-Term Bond, also outperformed. Sextant Growth and Sextant Core were below their benchmarks, and new managers have taken over these portfolios.

Assets of four of the six Sextant Funds increased over the past 12 months, and overall assets of the Funds now total $132 million. To help lower expenses, the Board of Trustees lowered management fees in March 2015. While the relatively small sizes of the Sextant Funds make it harder to minimize fixed operating expenses, the Funds' annualized expense ratios during the period were in the range of 0.75% to 1.04%.

Low operating expenses are more necessary than ever in today's competitive mutual fund universe. To further lower expenses, the Trustees agreed in December to seek ways to terminate the 12b-1 fee distribution expense on fund shares.

**Morningstar Awards Sextant Top Sustainability Ratings**

The Morningstar Sustainability RatingTM for funds premiered last March, giving investors around the world a way to compare fund portfolios based on a standardized measure of sustainability. These ratings are calculated using fund holdings data underpinned with company-level environmental, social, and governance (ESG) information from Sustainalytics, a leading provider of ESG research. Investors are cautioned, however, that more than 100 vendors offer "sustainable" investments data, and that no single global measurement yet prevails. While the Sextant Funds do not have specific sustainability mandates, our Funds fared very well. See page 5 for the details.

**Going Forward**

Since the election of Donald Trump, the economic outlook has brightened and stock markets have rallied. Republican control of the executive, the legislative, and within months the judiciary branches of the US government means many changes. The Affordable Care Act, a financial failure, will be greatly revised as Medicare and Medicaid get redesigned. Federal tax rates and tax deductions will be cut. Interest rates are higher and likely to rise, rewarding savers while reflecting higher inflationary expectations. Capital spending and domestic manufacturing will increase as various barriers to trade slip into place. A federal cabinet of businessmen and generals is replacing Washington bureaucrats.

Domestic financial markets will continue up only if real government change is experienced during the spring. We will continue to invest in innovative companies with strong business advantages and balance sheets. We aim to avoid companies dependent on government spending and the regions and countries that will be hurt the most in austerity.

(photo omitted)

| *Annual Report* | *November 30, 2016* | *3* |
|-----------------|---------------------|-----|

----

Turbulent times also create opportunity, and we seek entrepreneurial companies that can grow profits. Indeed, equity investors are optimistic that growing corporate earnings mean they will be rewarded.

The US has ended its stimulative bond-buying programs, but Europe and Japan continue similar efforts. The long-expected transition to higher interest rates has begun, and yields across the bond ladder have jumped in the last two months.

Going forward, the Sextant Funds continue to offer investors a broad mix of investment vehicles: growth equities, international exposure, and a blended portfolio, plus global high income, short-term, and long-term fixed income options. This array of portfolios serves our investors in both bull and bear markets by seeking to provide steady, long-term growth with a focus on preservation of capital. Please review the following pages for more in-depth information about each Fund.

Respectfully,

(photo omitted)

**Nicholas Kaiser**, President & Portfolio Manager

(photo omitted)

**John E. Love**, Independent Board Chairman

| Sextant Funds Portfolio Management |
|------------------------------------|
| (photo omitted)                    | **Nicholas Kaiser** MBA, CFA®

**Sextant International Fund**Portfolio Manager |   | (photo omitted) | **Phelps McIlvaine**

**Sextant Short-Term Bond FundSextant Bond Income FundSextant Core Fund**Portfolio Manager |
| (photo omitted)                    | **Scott Klimo** CFA®

**Sextant Growth Fund**Portfolio Manager

**Sextant International Fund**Deputy Portfolio Manager | (photo omitted) | **Bryce Fegley** CFA®, CIPM®

**Sextant Global High Income Fund**Portfolio Manager |
| (photo omitted)                    | **Patrick Drum** MBA, CFA®, CFP®

**Sextant Short-Term Bond FundSextant Bond Income FundSextant Global High Income Fund**Deputy Portfolio Manager | (photo omitted) | **Tyler Howard**MBA, CFA®

**Sextant Growth Fund**Deputy Portfolio Manager |
|                               | (photo omitted) | **Christopher Paul**MBA, CFA®

**Sextant Core Fund**Portfolio Manager |

| 4 | November 30, 2016 | Annual Report |
|---|-------------------|---------------|

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| Morningstar Sustainability RatingsTM | *(unaudited)* | As of November 30, 2016 |
|-------------------------------------------|---------------|-------------------------|

At Saturna Capital, we describe ourselves as value and values-based investors. We believe our approach improves the likelihood of achieving superior investment results over the long term. Our approach also leads to investment portfolios we can be proud of from the perspective of Environmental, Social, and Governance (ESG) issues. Morningstar recently partnered with leading ESG research firm Sustainalytics to develop the Morningstar Sustainability RatingTM — here are Sextant Funds' recent results:

| Sextant International Fund                         |                                                                                   | Sextant Core Fund |
|----------------------------------------------------|----------------------------------------------------------------------------------------|-------------------|
| SSIFX                                              |                                                                                        | SCORX             |  |
| 7th percentile among 621 Foreign Large Blend Funds | 2nd percentile among 710 Allocation 50%-70% Equity Funds                               |
|                                               |                                                                                   |
| Sextant Short-Term Bond Fund                       | Sextant Growth Fund                                                                    |
| STBFX                                              |                                                                                        | SSGFX             |  |
| 4th percentile among 447 Short-Term Bond Funds     | 9th percentile among 1,308 Large Growth Funds                                          |
|                                               |                                                                                   |
| Sextant Global High Income Fund                    | The Sextant Bond Income Fund has not yet received a Morningstar Sustainability Rating. |
| SGHIX                                              |                                                                                        |
| 91st percentile among 405 World Allocation Funds   |

The Morningstar Sustainability RatingTM gives investors across the globe a way to compare fund portfolios based on a standard measure of sustainability. The rating is a holdings-based calculation using company-level environmental, social, and governance (ESG) analytics from Sustainalytics.

The Morningstar Sustainability Rating and the Morningstar Portfolio Sustainability Score are not based on fund performance and are not equivalent to the Morningstar Rating ("Star Rating"). 

**© 2016 Morningstar®**. All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Morningstar Sustainability Ratings and Portfolio Sustainability Scores are as of November 30, 2016. The Morningstar Sustainability RatingTM is intended to measure how well the issuing companies of the securities within a fund's portfolio are managing their environmental, social, and governance ("ESG") risks and opportunities relative to the fund's Morningstar category peers. The Morningstar Sustainability Rating calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability ScoreTM.The Morningstar Portfolio Sustainability Score is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund's rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics' ESG scores from the same month as the portfolio as-of date. 

The Funds were rated on the following percentages of Assets Under Management:

| Sextant International Fund      | 86% |
|---------------------------------|-----|
| Sextant Core Fund               | 70% |
| Sextant Short-Term Bond Fund    | 60% |
| Sextant Growth Fund             | 95% |
| Sextant Global High Income Fund | 57% |

The Morningstar Portfolio Sustainability Scores and Morningstar Sustainability Ratings are new. The Fund's portfolio is actively managed and is subject to change, which may result in a different Morningstar Sustainability Score and Rating.

% Rank in Category is the fund's percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.

| Annual Report | November 30, 2016 | 5 |
|---------------|-------------------|---|

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| Average Annual Total Returns as of November 30, 2016 | 1 Year | 3 Year | 5 Year | 10 Year | Expense Ratio1 |
|------------------------------------------------------|--------|--------|--------|---------|---------------------|
|                                                 |
| Sextant Short-Term Bond Fund                         | 1.06%  | 0.89%  | 0.87%  | 2.34%   | 1.21%               |
| Citi USBIG Govt/Corp  1-3 Year Index                 | 1.05%  | 0.80%  | 0.89%  | 2.42%   | n/a                 |
|                                                 |
|                                                 |
| Sextant Bond Income Fund                             | 2.91%  | 3.23%  | 2.68%  | 4.06%   | 1.03%               |
| Citi US Broad Investment-Grade Bond Index            | 2.20%  | 2.78%  | 2.42%  | 4.35%   | n/a                 |
|                                                 |
|                                                 |
| Sextant Core Fund                                    | 1.78%  | 1.80%  | 4.36%  | n/a     | 1.02%               |
| Dow Jones Moderate US Portfolio Index                | 5.39%  | 3.88%  | 7.27%  | 5.02%   | n/a                 |
|                                                 |
|                                                 |
| Sextant Global High Income Fund                      | 13.72% | 2.13%  | n/a    | n/a     | 1.06%               |
| S&P Global 1200 Index                            | 4.51%  | 4.26%  | 10.39% | 4.49%   | n/a                 |
|                                                 |
|                                                 |
| Sextant Growth Fund                                  | -3.22% | 3.72%  | 10.21% | 5.05%   | 0.90%               |
| S&P 500 Index                                    | 8.06%  | 9.05%  | 14.43% | 6.88%   | n/a                 |
|                                                 |
|                                                 |
| Sextant International Fund                           | 0.49%  | -1.12% | 1.79%  | 2.03%   | 1.05%               |
| MSCI EAFE Index                                      | -3.17% | -1.77% | 6.09%  | 1.19%   | n/a                 |
|                                                 |

**Performance data quoted above represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results.**  Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-800-728-8762 or visiting www.sextantfunds.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Funds that invest in foreign securities may involve greater risk, including political and economic uncertainties of foreign countries as well as the risk of currency fluctuations.

1 By regulation, expense ratios shown in this table are as stated in the Funds' most recent prospectus, which is dated March 29, 2016, and incorporate results for the fiscal year ended November 30, 2015. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different periods.

 

| 6 | November 30, 2016 | Annual Report |
|---|-------------------|---------------|

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### Sextant Short-Term Bond Fund

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant Short-Term Bond Fund                         | 1.06% | 0.87% | 2.34% | 1.21% |
| Citigroup Gov./Corp. Inv. Grade Index 1-3 Years      | 1.05% | 0.89% | 2.42% | n/a |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | *Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2006, to an identical amount invested in the Citi USBIG Govt/Corp 1-3 Year Index, a broad-based index of shorter-term investment grade US government and corporate bond prices. The graph shows that an investment in the Fund would have risen to $12,599 versus $12,702 in the index.* |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.**The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015, before fee waivers. The actual expense ratio, shown in the most recent prospectus after fee waivers was 0.75%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.* |

Fund Objective

The objectives of the Short-Term Bond Fund are capital preservation and current income.

| Top Ten Holdings                                                      |                      | Portfolio Diversification         |
|-----------------------------------------------------------------------|---------------------------|-----------------------------------|
| **% of Total Net Assets**                                             | **% of Total Net Assets** |                              |
| Adobe Systems *(4.75% due 02/01/2020)*                                | 4.0%                      | Financials                        | 16.4% | █ |  |
| Gilead Sciences *(2.55% due 09/01/2020)*                              | 3.9%                      | Consumer Discretionary            | 13.7% | █ |
| Abbott Laboratories *(4.125% due 05/27/2020)*                         | 3.8%                      | United States Treasury Notes      | 12.1% | █ |
| Snap-On *(6.70% due 03/01/2019)*                                      | 3.7%                      | Health Care                       | 11.6% | █ |
| BHP Billiton Fin USA *(6.50% due 4/01/2019)*                          | 3.4%                      | Technology                        | 11.3% | █ |
| Emerson Electric *(4.875% due 10/15/19)*                              | 3.2%                      | Materials                         | 10.7% | █ |
| United States Treasury Note *(2.25% due 07/31/2018)*                  | 3.0%                      | Industrials                       | 9.0% | █ |
| United States Treasury Note *(2.00% due 09/30/2020)*                  | 2.9%                      | Utilities                         | 5.4% | █ |
| Berkshire Hathaway Finance *(2.00% due 08/15/2018)*                   | 2.9%                      | Energy                            | 4.8% | █ |
| Murray Street Trust 1 – Goldman Sachs *(4.647% due 03/09/2017)* | 2.9%                      | Other assets (net of liabilities) | 5.0% | █ |

 

| Annual Report | November 30, 2016 | 7 |
|---------------|-------------------|---|

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### Sextant Short-Term Bond Fund

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

(photo omitted)

**Fiscal Year 2016**

For the fiscal year ended November 30, 2016, the Sextant Short-Term Bond Fund returned 1.06%. This annual return was below its Morningstar category peer group, which returned 1.53% during the same period. For the five years ending November 30, 2016, the Fund provided a 0.87% annualized total return versus 1.52% for its Morningstar category peer group. The Fund began and ended its fiscal year with a share price of $5.02. Net investment income, reflecting the market's low yields, declined from 1.06% to 1.05%. Fund shares outstanding rose 37%. Fund assets also increased 37%. The Fund's 30-day yield was 0.75%, and its unsubsidized 30-day yield was 0.23%. Reflecting Saturna Capital's voluntary subsidies to cap operating expenses, the Fund's effective expense ratio remained at 0.75%.

**Factors Affecting Past Performance**

The US Federal Reserve Bank waited a year to increase the Federal Funds rate target, finally convinced by improving employment, home prices, car sales, and inflation. The five-year US Treasury yield eventually rose 0.15%, and the 30-year US Treasury yield fell -0.05%. The Personal Consumption Expenditure Index increased slightly to 1.94% year-over-year near the Federal Reserve's current 2% target.

Despite the 2016 increase in global bond yields, the absolute level of yields remained deeply inadequate for individual, institutional, and government savers, leading to outperformance for income replacement bonds like long duration high-yield paper. Modest increases in corporate earnings maintained corporate credit quality even as debt levels continued to rise. The tax-exempt municipal bond sector suffered characteristic underperformance when fiscal policies promoting lower corporate and personal income tax rates and fewer income tax exemptions became popular. China and Japan repatriated significant foreign exchange reserves previously invested in US Treasury securities leading to a pronounced decline in US Treasury bond prices. Global investment-grade bonds performed handsomely in the first nine months of 2016, but the surge of the US dollar late in the year significantly reduced this outperformance. The Short-Term Bond Fund focused on high-grade US corporate taxable paper with limited duration and therefore had less exposure to some weak areas. The Fund was limited by prospectus from investing in some of the stronger asset classes.

The average dollar-weighted maturity of the portfolio intentionally declined to 1.7 years, allowing the Fund to reinvest more quickly. The move is appropriate for a period of firming central bank policy.

**Looking Forward**

Central banks have fully explored their monetary powers and are now as likely to reduce accommodative programs as expand them. Central bank bond market intervention will continue in Europe, China, and Japan, depressing yields and currency values for another year. However, US investors will have more influence in the determination of yields and spreads. The normalization of the US bond market will continue for a second year. This should be welcome news for bond investors who may now earn more rational real returns for the risks they assume even while nominal yields remain close to historic lows. 

Currencies will continue to be a major influence on bond returns. Large currency devaluations, either intentional or uncontrolled, can lead to rising local inflation and higher currency-centric interest rates as in Venezuela, Russia, South Africa, and Brazil. However, these sovereign conditions will continue to be domestic, not global, concerns. For debtors with weak revenue and balance sheets, or a negative balance of payments, borrowing costs may rise. Regional geopolitical concerns may boost risk premiums as well. 

US dollar bond yields are among the highest in the world and are backed by a strong US dollar. The structural demand for bonds from retirees continues to expand. US inflation expectations will remain anchored by a strong US dollar even as the deflationary impact of weak commodity prices declines. Crisis-driven government deficit spending and borrowing is giving way to greater fiscal discipline and slowing bond issuance. As inflation continues to slow, rising real yields in the long end of the market offer additional appeal.

We will strive to maintain the high overall credit quality of the portfolio. While the risk/return profile of lower rated paper has improved, the less liquid nature of lower rated paper is a new concern.

Considering the volatile price corrections in currency, real estate, commodity, and equity markets over the last 10 years, the relatively stable return of a diversified portfolio of short-term investment grade bonds may bolster your conviction to stay fully invested and help you earn higher returns over longer holding periods. 

**Management Fee Calculations**

The Sextant Short-Term Bond Fund calculates the performance part of its management fee by comparing the Fund's return to the average return of Morningstar'sTM  "Short-Term Bond" category. The Fund's 12-month return (1.06%) was less than 1% percent below the MorningstarTM   category average of 1.53% at month-end November 30, 2016. Therefore, the basic annual management fee of 0.50% remained unchanged for the month of December 2016. Note that the management fee is partially waived due to the adviser's voluntary cap on total Fund expenses.

| *8* | *November 30, 2016* | *Annual Report* |
|-----|---------------------|-----------------|

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### Sextant Short-Term Bond Fund

| Schedule of Investments                                   | As of November 30, 2016 |
|-----------------------------------------------------------|-------------------------|
| Corporate Bonds — 82.9%                             | Coupon / Maturity       | Face Amount | Market Value | Percentage of Assets |
|                                                      |
| Consumer Discretionary                                    |                    |
|                                                      |
|     American Honda                              | 1.50% due 09/11/2017    | $250,000 | $250,522 | 2.4% |
|     Cintas No. 2                                | 6.125% due 12/01/2017   | 270,000 | 281,925 | 2.7% |
|     International Game Technology               | 7.50% due 06/15/2019    | 250,000 | 273,125 | 2.7% |
|     Snap-On                                     | 6.70% due 03/01/2019    | 350,000 | 386,101 | 3.7% |
|     Toyota Motor Credit                         | 1.25% due 10/05/2017    | 226,000 | 226,111 | 2.2% |
|                                                      |
|                                                      | 1,346,000               | 1,417,784 | 13.7% |
|                                                      |
| Energy                                                    |                    |
|                                                      |
|     Enbridge                                    | 5.60% due 04/01/2017    | 200,000 | 202,495 | 2.0% |
|     Statoil                                     | 5.25% due 04/15/2019    | 274,000 | 295,289 | 2.8% |
|                                                      |
|                                                      | 474,000                 | 497,784 | 4.8% |
|                                                      |
| Financials                                                |                    |
|                                                      |
|     Berkshire Hathaway Finance                  | 2.00% due 08/15/2018    | 300,000 | 302,672 | 2.9% |
|     BNP Paribas                                 | 2.375% due 09/14/2017   | 250,000 | 251,667 | 2.5% |
|     Broadridge Financial                        | 6.125% due 06/01/2017   | 275,000 | 280,869 | 2.7% |
|     General Electric Capital                    | 5.625% due 09/15/2017   | 250,000 | 258,669 | 2.5% |
|     Jeffries Group                              | 8.50% due 07/15/2019    | 265,000 | 301,413 | 2.9% |
|     Murray Street Trust 1 – Goldman Sachs | 4.647% due 03/09/2017   | 300,000 | 302,331 | 2.9% |
|                                                      |
|                                                      | 1,640,000               | 1,697,621 | 16.4% |
|                                                      |
| Health Care                                               |                    |
|                                                      |
|     Abbott Laboratories                         | 4.125% due 05/27/2020   | 375,000 | 394,127 | 3.8% |
|     AbbVie                                      | 2.50% due 05/14/2020    | 250,000 | 249,416 | 2.4% |
|     AstraZeneca                                 | 2.375% due 11/16/2020   | 155,000 | 154,443 | 1.5% |
|     Gilead Sciences                             | 2.55% due 09/01/2020    | 400,000 | 402,799 | 3.9% |
|                                                      |
|                                                      | 1,180,000               | 1,200,785 | 11.6% |
|                                                      |
| Industrials                                               |                    |
|                                                      |
|     ABB Finance                                 | 1.625% due 05/08/2017   | 250,000 | 250,518 | 2.4% |
|     Burlington Northern Santa Fe                | 5.65% due 05/01/2017    | 200,000 | 203,649 | 2.0% |
|     Emerson Electric                            | 4.875% due 10/15/19     | 310,000 | 335,912 | 3.2% |
|     Union Pacific                               | 7.875% due 01/15/2019   | 127,000 | 142,339 | 1.4% |
|                                                      |
|                                                      | 887,000                 | 932,418 | 9.0% |
|                                                      |
| Materials                                                 |                    |
|                                                      |
|     Air Products & Chemicals                | 1.20% due 10/15/2017    | 250,000 | 250,021 | 2.4% |
|     BHP Billiton Fin USA                        | 6.50% due 4/01/2019     | 315,000 | 347,329 | 3.4% |
|     Potash                                      | 3.25% due 12/01/2017    | 250,000 | 253,750 | 2.5% |
|     Sherwin Williams                            | 1.35% due 12/15/2017    | 250,000 | 249,975 | 2.4% |
|                                                      |
|                                                      | 1,065,000               | 1,101,075 | 10.7% |
|                                                      |
| Continued on next page.                                   |

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 9 |
|----------------------------------------------------------------------------|---------------|-------------------|---|

----

| Schedule of Investments                   | As of November 30, 2016 |
|-------------------------------------------|-------------------------|
| **Corporate Bonds — 82.9%**         | **Coupon / Maturity**   | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                      |
| Technology                                |                    |
|                                      |
|     Adobe Systems               | 4.75% due 02/01/2020    | $379,000 | $407,574 | 4.0% |
|     Lexmark                     | 6.65% due 06/01/2018    | 275,000 | 289,307 | 2.8% |
|     Oracle                      | 5.75% due 04/15/2018    | 250,000 | 264,500 | 2.6% |
|     Xilinx                      | 2.125% due 03/15/2019   | 200,000 | 200,476 | 1.9% |
|                                      |
|                                      | 1,104,000               | 1,161,857 | 11.3% |
|                                      |
| Utilities                                 |                    |
|                                      |
|     Georgia Power               | 5.70% due 06/01/2017    | 250,000 | 255,479 | 2.5% |
|     LaClede Gas                 | 2.00% due 08/15/2018    | 300,000 | 299,645 | 2.9% |
|                                      |
|                                      | 550,000                 | 555,124 | 5.4% |
|                                      |
| Total Corporate Bonds                     |                    | 8,246,000 | 8,564,448 | 82.9% |
|                                      |
| Government Bonds — 12.1%            | Coupon / Maturity       | Face Amount | Market Value | Percentage of Assets |
|                                      |
| United States Treasury Notes              |                    |
|                                      |
|     United States Treasury Note | 2.50% due 06/30/2017    | 143,000 | 144,464 | 1.4% |
|     United States Treasury Note | 2.75% due 12/31/2017    | 142,000 | 144,762 | 1.4% |
|     United States Treasury Note | 2.625% due 01/31/2018   | 141,000 | 143,704 | 1.4% |
|     United States Treasury Note | 2.25% due 07/31/2018    | 300,000 | 305,883 | 3.0% |
|     United States Treasury Note | 2.75% due 02/15/2019    | 200,000 | 206,750 | 2.0% |
|     United States Treasury Note | 2.00% due 09/30/2020    | 300,000 | 303,820 | 2.9% |
|                                      |
|                                      | 1,226,000               | 1,249,383 | 12.1% |
|                                      |
| Total investments                         | (Cost = $9,847,459)     | $9,472,000 | 9,813,831 | 95.0% |
| Other assets (net of liabilities)         |                    | 512,567 | 5.0% |
| Total net assets                          |                    | $10,326,398 | 100.0% |

 

| Bond Quality Diversification      | *(unaudited)* |
|-----------------------------------|---------------|
| % of Total Net Assets             |          |
| Rated "Aaa"             | 12.1%         | █ |  |
| Rated "Aa2"             | 2.5%          | █ |
| Rated "Aa3"             | 5.0%          | █ |
| Rated "A1"              | 13.8%         | █ |
| Rated "A2"              | 14.5%         | █ |
| Rated "A3"              | 27.6%         | █ |
| Rated "Baa1"            | 6.7%          | █ |
| Rated "Baa2"            | 4.4%          | █ |
| Rated "Baa3"            | 5.7%          | █ |
| Rated "Ba2"             | 2.7%          | █ |
| Other assets (net of liabilities) | 5.0%          | █ |

Credit ratings are determined by Moody's Investors Service, a Nationally Recognized Statistical Rating Organization. If Moody's does not rate a particular security, that security is categorized as not rated. 

 

| 10 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Short-Term Bond Fund

| Statement of Assets and Liabilities                                              |
|----------------------------------------------------------------------------------|
| As of November 30, 2016                                                          |
|                                                                             |
| Assets                                                                           |
|     Investments in securities, at value    (Cost $9,847,459) | $9,813,831 |
|     Cash                                                               | 753,377 |
|     Interest receivable                                                | 112,806 |
|     Receivable for Fund shares sold                                    | 5,517 |
|     Reimbursement due from adviser	                                 | 407 |
|         Total assets                                         | 10,685,938 |
| Liabilities                                                                      |
|     Payable for security purchases	                                 | 351,350 |
|     Accrued expenses	                                               | 3,898 |
|     Payable to affiliates                                              | 3,702 |
|     Accrued distribution fees                                          | 564 |
|     Distributions payable                                              | 26 |
|         Total liabilities                                    | 359,540 |
| Net Assets                                                                       | $10,326,398 |
|                                                                             |
| Analysis of net assets                                                           |
|     Paid-in capital (unlimited shares authorized, without par value)   | $10,358,852 |
|     Undistributed net investment income                                | 1,174 |
|     Unrealized net depreciation on investments                         | (33,628) |
| Net assets applicable to Fund shares outstanding                                 | $10,326,398 |
|                                                                             |
| Fund shares outstanding                                                          | **2,055,416** |
|                                                                             |
| Net asset value, offering, and redemption price per share                        | $5.02 |

 

| Statement of Operations                                |
|--------------------------------------------------------|
| Year ended November 30, 2016                           |
|                                                   |
| Investment income                                      |
|     Interest income                          | $144,676 |
|     Miscellaneous income                     | 5 |
|         Total investment income    | 144,681 |
| Expenses                                               |
|     Investment adviser fees                  | 40,216 |
|     Distribution fees                        | 20,108 |
|     Filing and registration fees             | 15,275 |
|     Audit fees                               | 5,176 |
|     Retirement plan custodial fees           | 3,680 |
|     Printing and postage                     | 2,345 |
|     Chief Compliance Officer expenses        | 2,236 |
|     Trustee fees                             | 1,739 |
|     Other expenses                           | 1,013 |
|     Custodian fees                           | 371 |
|     Legal fees                               | 216 |
|         Total gross expenses       | 92,375 |
|     Less adviser fees waived                 | (31,468) |
|     Less custodian fee credits               | (371) |
|         Net expenses               | 60,536 |
| Net investment income                                  | $84,145 |
|                                                   |
|                                                   |
| Net realized gain from investments                     | $6,043 |
| Net decrease in unrealized depreciation on investments | (14,623) |
| Net loss on investments                                | $(8,580) |
|                                                   |
| Net increase in net assets resulting from operations   | $75,565 |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 11 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Short-Term Bond Fund

| Statements of Changes in Net Assets                                | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|--------------------------------------------------------------------|--------------------------|--------------------------|
| Increase (decrease) in net assets from operations                  |
| From operations                                                    |
|     Net investment income                                | $84,145                  | $82,216                  |
|     Net realized gain on investments                     | 6,043                    | 484                      |
|     Net decrease in unrealized depreciation              | (14,623)                 | (39,199)                 |
|         Net increase in net assets             | 75,565                   | 43,501                   |
| Distributions to shareowners from                                  |
|     Net investment income                                | (84,169)                 | (82,326)                 |
|         Total distributions                    | (84,169)                 | (82,326)                 |
| Capital share transactions                                         |
|     Proceeds from sales of shares                        | 4,019,356                | 1,049,046                |
|     Value of shares issued in reinvestment of dividends  | 83,674                   | 81,924                   |
|     Cost of shares redeemed                              | (1,256,339)              | (1,277,499)              |
|          Net increase (decrease) in net assets | 2,846,691                | (146,529)                |
| Total increase (decrease) in net assets                            | **2,838,087**            | **(185,354)**            |
|                                                               |
| Net assets                                                         |
| Beginning of year                                                  | 7,488,311                | 7,673,665                |
| End of year                                                        | 10,326,398               | 7,488,311                |
|                                                               |
| Undistributed net investment income                                | $1,174                   | $1,198                   |
|                                                               |
| Shares of the Fund sold and redeemed                               |
|     Number of shares sold                                | 796,015                  | 208,638                  |
|     Number of shares issued in reinvestment of dividends | 16,602                   | 16,293                   |
|     Number of shares redeemed                            | (249,169)                | (254,154)                |
| Net increase (decrease) in number of shares outstanding            | 563,448                  | (29,223)                 |

 

| Financial Highlights                                                                             | For year ended November 30, |
|--------------------------------------------------------------------------------------------------|-----------------------------|
| Selected data per share of outstanding capital stock throughout each year:                       | 2016                        | 2015 | 2014 | 2013 | 2012 |
| **Net asset value at beginning of year**                                                         | $5.02                       | $5.04 | $5.05 | $5.07 | $5.10 |
| Income from investment operations                                                                |
|     Net investment income                                                              | 0.05                        | 0.05 | 0.06 | 0.06 | 0.07 |
|     Net gains (losses) on securities (both realized and unrealized)                    | 0.001                  | (0.02) | (0.01) | (0.02) | (0.03) |
| Total from investment operations                                                                 | 0.05                        | 0.03 | 0.05 | 0.04 | 0.04 |
| Less distributions                                                                               |
|     Dividends (from net investment income)                                             | (0.05)                      | (0.05) | (0.06) | (0.06) | (0.07) |
| Total distributions                                                                              | (0.05)                      | (0.05) | (0.06) | (0.06) | (0.07) |
|     Paid-in capital from early redemption fees                                         | n/a                         | n/a | n/a | - | 0.001 |
|                                                                                             |
| Net asset value at end of year                                                                   | $5.02                       | $5.02 | $5.04 | $5.05 | $5.07 |
|                                                                                             |
| Total return                                                                                     | 1.06%                       | 0.67% | 0.94% | 0.82% | 0.89% |
|                                                                                             |
| Ratios / supplemental data                                                                       |
| Net assets ($000), end of year                                                                   | $10,326                     | $7,488 | $7,674 | $7,307 | $6,689 |
| Ratio of expenses to average net assets                                                          |
|    Before fee waivers and custodian fee credits                                        | 1.15%                       | 1.21% | 1.29% | 1.14% | 1.26% |
|     After fee waivers                                                                  | 0.76%                       | 0.76% | 0.76% | 0.76% | 0.76% |
|    After fee waivers and custodian fee credits                                         | 0.75%                       | 0.75% | 0.75% | 0.75% | 0.75% |
| Ratio of net investment income after fee waivers and custodian fee credits to average net assets | 1.05%                       | 1.06% | 1.14% | 1.20% | 1.47% |
| Portfolio turnover rate                                                                          | 11%                         | 13% | 14% | 50% | 26% |
| 1 Amount is less than $0.01                                                                 |

 

| 12 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Bond Income Fund

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant Bond Income Fund                             | 2.91% | 2.68% | 4.06% | 1.03% |
| Citigroup Broad Investment Grade Bond Index          | 2.20% | 2.42% | 4.35% | n/a |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | *Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2006, to an identical amount invested in the Citi US Broad Investment-Grade Bond Index, a broad-based index of medium and long-term investment grade bond prices. The graph shows that an investment in the Fund would have risen to $14,895 versus $15,312 in the index.* |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.90%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.* |

Fund Objective

The objective of the Bond Income Fund is current income.

| Top Ten Holdings                                      |                      | Portfolio Diversification    |
|-------------------------------------------------------|---------------------------|------------------------------|
| **% of Total Net Assets**                             | **% of Total Net Assets** |                         |
| United States Treasury Bond *(5.375% due 02/15/2031)* | 5.5%                      | Municipal General Obligation | 15.3% | █ |  |
| Apple *(4.50% due 02/23/2036)*                        | 3.8%                      | Technology                   | 14.4% | █ |
| Microsoft *(4.20% due 11/03/2035)*                    | 3.8%                      | Health Care                  | 12.4% | █ |
| Intel *(4.00% due 12/15/2032)*                        | 3.7%                      | United States Treasury Bonds | 11.1% | █ |
| United States Treasury Bond *(6.25% due 05/15/2030)*  | 3.3%                      | Energy                       | 8.6% | █ |
| Cincinnati Financial *(6.92% due 05/15/2028)*         | 3.2%                      | Financials                   | 8.2% | █ |
| Puget Sound Energy *(7.02% due 12/01/2027)*           | 3.1%                      | Utilities                    | 6.7% | █ |
| Becton Dickinson *(6.70% due 08/01/2028)*             | 3.1%                      | Municipal Revenue            | 4.6% | █ |
| Statoil (Norsk Hydro Yankee) *(7.15% due 01/15/2029)* | 3.1%                      | Industrials                  | 4.3% | █ |
| EMC *(3.375% due 06/01/2023)*                         | 3.1%                      | Consumer Staples             | 2.7% | █ |
|                                                  | Consumer Discretionary    | 2.5%                         | █ |
| Foreign Government Bonds                              | 2.2%                      | █                      |
| Other industries < 2%                              | 0.6%                      | █                      |
| Other assets (net of liabilities)                     | 6.4%                      | █                      |

| *Annual Report* | *November 30, 2016* | *13* |
|-----------------|---------------------|------|

----

### Sextant Bond Income Fund

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

(photo omitted)

**Fiscal Year 2016**

For the fiscal year ended November 30, 2016, the Sextant Bond Income Fund returned 2.91%. This annual return was less than its Morningstar category peer group, which returned 4.51% during the same period. For the five years ending November 30, 2016, the Fund provided a 2.68% annualized total return versus 5.12% for its Morningstar category peer group. The Fund began and ended its fiscal year with a share price of $5.07. Net investment income declined from 3.21% to 2.85%. Fund shares outstanding rose 21%. Fund assets also rose 21%. The Fund's 30-day yield was 2.18% and its unsubsidized 30-day yield was also 2.18%. Reflecting Saturna Capital's voluntary subsidies to cap operating expenses, the Fund's effective expense ratio declined to 0.88%.

**Factors Affecting Past Performance**

The US Federal Reserve Bank waited a year to increase the Federal Funds rate target, finally convinced by improving employment, home prices, car sales, and inflation. The five-year US Treasury yield eventually rose 0.15%, and the 30-year US Treasury yield fell -0.05%. The Personal Consumption Expenditure Index increased slightly to 1.94% year-over-year near the Federal Reserve's current 2% target. 

Despite the 2016 increase in global bond yields, the absolute level of yields remained deeply inadequate for individual and institutional savers, leading to outperformance for income replacement bonds like long duration high-yield paper. Modest increases in corporate earnings maintained corporate credit quality even as debt levels continued to rise. China and Japan repatriated significant foreign exchange reserves previously invested in US Treasury securities leading to a pronounced decline in US Treasury bond prices. Global investment-grade bonds outperformed handsomely in the first nine months of 2016, but the surge of the US dollar late in the year significantly reduced this outperformance. The Bond Income Fund focused on high-grade US corporate taxable paper with an average dollar-weighted maturity of about 10 years. The Fund's overweight position in taxable Build America bonds detracted from overall performance.

**Looking Forward**

The Federal Reserve will likely increase rates by 0.50% in 2017. The Fund expects to maintain the dollar-weighted average maturity near its normal minimum of 10 years.

For eight years, the survival of heavily indebted borrowers has compelled central banks to flood economies with excess capital to avoid a deflationary retrenchment in leverage. While cheap excess capital can facilitate the refinancing and expansion of debt burdens, the burden of debt service continues to require low borrowing costs. Hyperlow and negative rates in Japan and Europe illustrate the point. 

The yield curve offers guidance on the capital markets' evaluation of recent events. The US yield curve beyond the five-year maturity has been flattening for five years. While this portion of the curve initially steepened in 2016, the recent change in Federal Reserve Bank policy reversed that move. Long-term inflation expectations remain subdued. The inflationary impact of lower tax rates and deficit-funded government stimulus may be significantly reduced by the amount of debt outstanding and tighter monetary policy. 

Although unlikely, the greatest risk for the US fixed-income markets in 2017 is a significant decline in the value of the US dollar. Japan, Europe, China, and Great Britain continue quantitative easing and hyperlow deposit rates. The US Federal Reserve Bank began the transition away from these policies two years ago in response to a firming economy. 

While global yields have recently risen one percent, this does not mean a secular trend toward higher yields is at hand. Massive debt loads will continue to hold down economic growth, inflation, and interest rates around the world. Brexit, the stability of the European Union, leverage in China and Japan, and disinflationary currency posturing are some the concerns that still require ultra-accommodative monetary policy. In the manager's opinion, the necessary foundation supporting the ownership of high quality US dollar-denominated fixed-income securities remains intact, and investment opportunities have recently improved.

**Management Fee Calculations**

The Sextant Bond Income Fund calculates the performance part of its management fee by comparing the Fund's return to the return of Morningstar'sTM  "Long-Term Bond" category. The Fund's 12-month return of 2.91% was more than 1% but less than 2% below the MorningstarTM category average of 4.51% at month-end November 30, 2016. Therefore, the basic annual management fee of 0.50% was decreased by 0.10% to 0.40% for the month of December 2016. Note that the management fee is partially waived due to the adviser's voluntary cap on total Fund expenses.

| *14* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

----

### Sextant Bond Income Fund

| Schedule of Investments                     | As of November 30, 2016 |
|---------------------------------------------|-------------------------|
| **Corporate Bonds — 60.4%**           | **Coupon/Maturity**     | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                        |
| Consumer Discretionary                      |
|                                        |                    |
|     VF                            | 6.00% due 10/15/2033    | $200,000 | $238,079 | 2.5% |
|                                        |
|                                        | 200,000                 | 238,079 | 2.5% |
|                                        |
| Consumer Staples                            |                    |
|                                        |
|     Unilever Capital              | 5.90% due 11/15/2032    | 200,000 | 262,044 | 2.7% |
|                                        |
|                                        | 200,000                 | 262,044 | 2.7% |
|                                        |
| Energy                                      |                    |
|                                        |
|     Baker Hughes                  | 6.875% due 01/15/2029   | 100,000 | 121,075 | 1.3% |
|     Canadian Natural Resources    | 6.45% due 06/30/2033    | 225,000 | 243,192 | 2.5% |
|     ConocoPhillips                | 6.00% due 01/15/2020    | 150,000 | 165,934 | 1.7% |
|     Statoil  (Norsk Hydro Yankee) | 7.15% due 01/15/2029    | 224,000 | 299,059 | 3.1% |
|                                        |
|                                        | 699,000                 | 829,260 | 8.6% |
|                                        |
| Financials                                  |
|                                        |                    |
|     Affiliated Managers Group     | 3.50% due 08/01/2025    | 250,000 | 236,898 | 2.4% |
|     Cincinnati Financial          | 6.92% due 05/15/2028    | 250,000 | 312,112 | 3.2% |
|     UBS  Stamford CT              | 7.75% due 09/01/2026    | 200,000 | 251,344 | 2.6% |
|                                        |
|                                        | **700,000**             | **800,354** | **8.2%** |
|                                        |
| Health Care                                 |
|                                        |                    |
|     Becton Dickinson              | 6.70% due 08/01/2028    | 240,000 | 299,590 | 3.1% |
|     Johnson & Johnson         | 4.95% due 05/15/2033    | 226,000 | 264,232 | 2.7% |
|     Merck & Co. (Schering)    | 6.50% due 12/01/2033    | 215,000 | 279,644 | 2.9% |
|     Pharmacia                     | 6.50% due 12/01/2018    | 100,000 | 109,582 | 1.1% |
|     Teva Pharmaceutical           | 3.65% due 11/10/2021    | 250,000 | 252,398 | 2.6% |
|                                        |
|                                        | **1,031,000**           | **1,205,446** | **12.4%** |
|                                        |
| Industrials                                 |
|                                        |                    |
|     Boeing                        | 6.125% due 02/15/2033   | 215,000 | 275,962 | 2.9% |
|     Deere & Co.               | 8.10% due 05/15/2030    | 95,000 | 139,129 | 1.4% |
|                                        |
|                                        | **310,000**             | **415,091** | **4.3%** |
|                                        |
| Materials                                   |
|                                        |                    |
|     Air Products & Chemicals  | 8.75% due 04/15/2021    | 50,000 | 60,279 | 0.6% |
|                                        |
|                                        | **50,000**              | **60,279** | **0.6%** |
|                                        |
| Continued on next page.                     |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 15 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Bond Income Fund

| Schedule of Investments                            | As of November 30, 2016 |
|----------------------------------------------------|-------------------------|
| **Corporate Bonds — 60.4%**                  | **Coupon/Maturity**     | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                               |
| Technology                                         |
|                                               |                    |
|     Apple                                | 4.50% due 02/23/2036    | $350,000 | $372,233 | 3.8% |
|     EMC                                  | 3.375% due 06/01/2023   | 330,000 | 297,974 | 3.1% |
|     Intel                                | 4.00% due 12/15/2032    | 360,000 | 363,969 | 3.7% |
|     Microsoft                            | 4.20% due 11/03/2035    | 350,000 | 365,188 | 3.8% |
|                                               |
|                                               | **1,390,000**           | **1,399,364** | **14.4%** |
|                                               |
| Utilities                                          |
|                                               |                    |
|     Entergy Louisiana                    | 5.40% due 11/01/2024    | 200,000 | 229,192 | 2.3% |
|     Florida Power & Light            | 5.95% due 10/01/2033    | 100,000 | 124,131 | 1.3% |
|     Puget Sound Energy                   | 7.02% due 12/01/2027    | 237,000 | 300,429 | 3.1% |
|                                               |
|                                               | **537,000**             | **653,752** | **6.7%** |
|                                               |
| **Total Corporate Bonds**                          | **5,117,000**           | **5,863,669** | **60.4%** |
|                                               |
| **Government Bonds — 13.3%**                 | **Coupon/Maturity**     | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                               |
| **Foreign Government Bonds**                       |
|                                               |                    |
|     Quebec Canada Yankee                 | 7.125% due 02/09/2024   | 175,000 | 219,307 | 2.2% |
|                                               |
|                                               | **175,000**             | **219,307** | **2.2%** |
|                                               |
| **United States Treasury Bonds**                   |
|                                               |                    |
|     United States Treasury Bond          | 6.25% due 05/15/2030    | 225,000 | 320,282 | 3.3% |
|     United States Treasury Bond          | 5.375% due 02/15/2031   | 400,000 | 535,953 | 5.5% |
|     United States Treasury Bond          | 5.25% due 02/15/2029    | 170,000 | 218,782 | 2.3% |
|                                               |
|                                               | **795,000**             | **1,075,017** | **11.1%** |
|                                               |
| **Total Government Bonds**                         | **970,000**             | **1,294,324** | **13.3%** |
|                                               |
| **Municipal Bonds — 19.9%**                  | **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 | 272,467 | 2.8% |
|     Dell Rapids SCD 49-3                 | 6.257% due 01/15/2030   | 200,000 | 226,394 | 2.3% |
|     Dupage Co. IL SCD #502               | 5.50% due 01/01/2026    | 150,000 | 159,593 | 1.6% |
|     Idaho Hsg. & Fin. GARVEE BAB A-2 | 5.379% due 07/15/2020   | 180,000 | 194,717 | 2.0% |
|     Milan Co. MI Area Schools            | 6.45% due 05/01/2024    | 150,000 | 163,628 | 1.7% |
|     San Marcos Texas ULTD GO BAB         | 6.028% due 08/15/2030   | 200,000 | 219,746 | 2.3% |
|     Springville UT GO BAB                | 5.30% due 05/01/2031    | 240,000 | 249,866 | 2.6% |
|                                               |
|                                               | **1,370,000**           | **1,486,411** | **15.3%** |
|                                               |
| *Continued on next page.*                          |

 

| *16* | *November 30, 2016* | *Annual Report* | *The accompanying notes are an integral part of these financial statements.* |
|------|---------------------|-----------------|------------------------------------------------------------------------------|

----

### Sextant Bond Income Fund

| Schedule of Investments                              | As of November 30, 2016 |
|------------------------------------------------------|-------------------------|
| **Municipal Bonds — 19.9%**                    | **Coupon/Maturity**     | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                                 |
| Revenue                                              |
|                                                 |                    |
|    Johnson Co. KS Bldg. Ls./Pr. REV. BAB   | 4.60% due 09/01/2026    | $250,000 | $254,663 | 2.6% |
|    Oklahoma City Fin. Auth. Ed. Lease Rev. | 6.60% due 09/01/2022    | 160,000 | 187,235 | 2.0% |
|                                                 |
|                                                 | **410,000**             | **441,898** | **4.6%** |
|                                                 |
| **Total Municipal Bonds**                            | **1,780,000**           | **1,928,309** | **19.9%** |
|                                                 |
| Total investments                                    | (Cost = $8,951,758)     | $7,867,000 | 9,086,302 | 93.6% |
| Other assets (net of liabilities)                    |                    | 617,036 | 6.4% |
| **Total net assets**                                 | **$9,703,338**          | **100.0%** |

 

| Bond Quality Diversification      | *(unaudited)* |
|-----------------------------------|---------------|
| **% of Total Net Assets**         |          |
| Rated "Aaa"             | 20.2%         | █ |  |
| Rated "Aa1"             | 7.1%          | █ |
| Rated "Aa2"             | 6.3%          | █ |
| Rated "Aa3"             | 3.1%          | █ |
| Rated "A1"              | 10.4%         | █ |
| Rated "A2"              | 12.3%         | █ |
| Rated "A3"              | 8.1%          | █ |
| Rated "Baa1"            | 1.3%          | █ |
| Rated "Baa2"            | 10.0%         | █ |
| Rated "Baa3"            | 2.5%          | █ |
| Rated "Ba2"             | 3.1%          | █ |
| Not rated                         | 9.2%          | █ |
| Other assets (net of liabilities) | 6.4%          | █ |

*Credit ratings are determined by Moody's Investors Service, a Nationally Recognized Statistical Rating Organization. If Moody's does not rate a particular security, that security is categorized as not rated.*

| *The accompanying notes are an integral part of these financial statements.* | *November 30, 2016* | *Annual Report* | *17* |
|------------------------------------------------------------------------------|---------------------|-----------------|------|

----

### Sextant Bond Income Fund

| *Statement of Assets and Liabilities*                                                       |
|---------------------------------------------------------------------------------------------|
| As of November 30, 2016                                                                     |
|                                                                                        |
| **Assets**                                                                                  |
|     Investments in securities, at value    (Cost $8,951,758)            | $9,086,302 |
|     Cash                                                                          | 526,797 |
|     Interest receivable                                                           | 112,302 |
|     Receivable for Fund shares sold	                                           | 2,762 |
|     Prepaid filing and registration fees                                          | 1,816 |
|     Insurance reserve premium                                                     | 400 |
|         Total assets                                                    | 9,730,379 |
| **Liabilities**                                                                             |
|    Payable for Fund shares redeemed                                               | 14,376 |
|    Payable to affilliates                                                         | 6,784 |
|    Accrued audit expenses                                                         | 5,000 |
|    Accrued distribution fees                                                      | 537 |
|    Accrued other expenses                                                         | 179 |
|    Accrued trustee expenses                                                       | 165 |
|         Total liabilities                                               | 27,041 |
| **Net assets**                                                                              | **$9,703,338** |
|                                                                                        |
| **Analysis of net assets**                                                                  |
|     Paid-in capital (unlimited shares authorized,    without par value) | 9,616,991 |
|     Accumulated net realized loss                                                 | (48,197) |
|     Unrealized net appreciation on investments                                    | 134,544 |
| **Net assets applicable to Fund shares outstanding**                                        | $9,703,338 |
|                                                                                        |
| **Fund shares outstanding**                                                                 | **1,915,479** |
|                                                                                        |
| **Net asset value, offering, and redemption price per share**                               | **$5.07** |

 

| *Statement of Operations*                                |
|----------------------------------------------------------|
| Year ended November 30, 2016                             |
|                                                     |
| **Investment income**                                    |
|     Interest income                            | $335,998 |
|     Miscellaneous income                       | 1 |
|         Total investment income      | 335,999 |
| **Expenses**                                             |
|     Investment adviser fees                    | 37,913 |
|     Distribution fees                          | 22,476 |
|     Filing and registration fees               | 14,527 |
|     Audit fees                                 | 5,504 |
|     Retirement plan custodial fees             | 2,733 |
|     Chief Compliance Officer expenses          | 2,326 |
|     Printing and postage                       | 2,247 |
|     Trustee fees                               | 1,882 |
|     Other expenses                             | 983 |
|     Custodian fees                             | 412 |
|     Legal fees                                 | 161 |
|         Total gross expenses         | 91,164 |
|     Less adviser fees waived                   | (11,200) |
|     Less custodian fee credits                 | (412) |
|         Net expenses                 | 79,552 |
| **Net investment income**                                | **$256,447** |
|                                                     |
|                                                     |
| Net realized loss from investments                       | ($27,730) |
| Net decrease in unrealized appreciation oninvestments    | (60,674) |
| **Net loss on investments**                              | **($88,404)** |
|                                                     |
| **Net increase in net assets resulting from operations** | $168,043 |

 

| *18* | *November 30, 2016* | *Annual Report* | *The accompanying notes are an integral part of these financial statements.* |
|------|---------------------|-----------------|------------------------------------------------------------------------------|

----

### Sextant Bond Income Fund

| Statements of Changes in Net Assets                                | *Year ended Nov. 30, 2016* | *Year ended Nov. 30, 2015* |
|--------------------------------------------------------------------|----------------------------|----------------------------|
| **Increase (decrease) in net assets from operations**              |
| **From operations**                                                |
|     Net investment income                                | $256,447                   | $263,978                   |
|     Net realized gain (loss) on investments              | (27,730)                   | 1,250                      |
|     Net decrease in unrealized appreciation              | (60,674)                   | (311,261)                  |
|         Net increase (decrease) in net assets  | 168,043                    | (46,033)                   |
| **Distributions to shareowners from**                              |
|     Net investment income                                | (256,646)                  | (264,141)                  |
| **Capital share transactions**                                     |
|     Proceeds from sales of shares                        | 2,893,733                  | 740,349                    |
|     Value of shares issued in reinvestment of dividends  | 256,111                    | 262,643                    |
|     Cost of shares redeemed                              | (1,355,942)                | (661,368)                  |
|         Net increase in net assets             | 1,793,902                  | 341,624                    |
| **Total increase in net assets**                                   | **1,705,299**              | **31,450**                 |
|                                                               |
| **Net assets**                                                     |
| Beginning of year                                                  | 7,998,039                  | 7,966,589                  |
| End of year                                                        | 9,703,338                  | 7,998,039                  |
|                                                               |
| **Shares of the Fund sold and redeemed**                           |
|     Number of shares sold                                | 549,472                    | 141,527                    |
|     Number of shares issued in reinvestment of dividends | 49,249                     | 50,545                     |
|     Number of shares redeemed                            | (260,805)                  | (127,717)                  |
| **Net increase in number of shares outstanding**                   | **337,916**                | **64,355**                 |

 

| Financial Highlights                                                                             | *For year ended November 30,* |
|--------------------------------------------------------------------------------------------------|-------------------------------|
| *Selected data per share of outstanding capital stock throughout each year:*                     | **2016**                      | **2015** | **2014** | **2013** | **2012** |
| **Net asset value at beginning of year**                                                         | **$5.07**                     | **$5.26** | **$5.05** | **$5.41** | **$5.19** |
| **Income from investment operations**                                                            |
|     Net investment income                                                              | 0.15                          | 0.17 | 0.16 | 0.17 | 0.17 |
|     Net gains (losses) on securities (both realized and unrealized)                    | 0.001                    | (0.19) | 0.21 | (0.36) | 0.22 |
| **Total from investment operations**                                                             | **0.15**                      | **(0.02)** | **0.37** | **(0.19)** | **0.39** |
| **Less distributions**                                                                           |
|     Dividends (from net investment income)                                             | (0.15)                        | (0.17) | (0.16) | (0.17) | (0.17) |
| **Total distributions**                                                                          | **(0.15)**                    | **(0.17)** | **(0.16)** | **(0.17)** | **(0.17)** |
|     Paid-in capital from early redemption fees                                         | n/a                           | n/a | n/a | - | - |
|                                                                                             |
| **Net asset value at end of year**                                                               | **$5.07**                     | **$5.07** | **$5.26** | **$5.05** | **$5.41** |
|                                                                                             |
| **Total return**                                                                                 | **2.91%**                     | **(0.47)%** | **7.40%** | **(3.59)%** | **7.64%** |
|                                                                                             |
| **Ratios / supplemental data**                                                                   |
| Net assets ($000), end of year                                                                   | $9,703                        | $7,998 | $7,967 | $7,117 | $7,922 |
| Ratio of expenses to average net assets                                                          |
|     Before fee waivers and custodian fee credits                                       | 1.01%                         | 1.03% | 1.27% | 1.12% | 1.36% |
|     After fee waivers                                                                  | 0.89%                         | 0.90% | 0.91% | 0.90% | 0.91% |
|     After fee waivers and custodian fee credits                                        | 0.88%                         | 0.90% | 0.90% | 0.89% | 0.90% |
| Ratio of net investment income after fee waivers and custodian fee credits to average net assets | 2.85%                         | 3.21% | 3.07% | 3.23% | 3.23% |
| **Portfolio turnover rate**                                                                      | **11%**                       | **4%** | **13%** | **8%** | **6%** |
| *1 Amount is less than $0.01*                                                               |

 

| *The accompanying notes are an integral part of these financial statements.* | *Annual Report* | *November 30, 2016* | *19* |
|------------------------------------------------------------------------------|-----------------|---------------------|------|

----

### Sextant Core Fund

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant Core Fund2                              | 1.78% | 4.36% | n/a | 1.02% |
| Dow Jones Moderate US Portfolio Index                | 5.39% | 7.27% | 5.02% | n/a |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | *Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 30, 2007 (the Fund's inception), to an identical amount invested in the Dow Jones Moderate US Portfolio Index, a broad-based index of stock and bond prices. The graph shows that an investment in the Fund would have risen to $13,888 versus $15,904 in the index.* |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.*

*2 The Sextant Core Fund began operations on March 30, 2007.* |

Fund Objective

The objectives of the Core Fund are long-term appreciation and capital preservation.

| Portfolio Diversification    |
|------------------------------|
|                         | **% of Total Net Assets** |
| **Sectors**                  | *Equity* | *Fixed Income* |
| Communications               | 2.9% | 5.9% |
| Consumer Discretionary       | 3.9% | 4.1% |
| Consumer Staples             | 7.5% | n/a |
| Energy                       | 3.6% | 1.2% |
| Financials                   | 8.9% | 8.1% |
| Foreign Government Bonds     | n/a | 4.6% |
| Government Bonds             | n/a | 2.9% |
| Health Care                  | 6.5% | 4.2% |
| Industrials                  | 4.4% | n/a |
| Materials                    | 5.1% | 1.2% |
| Municipal General Obligation | n/a | 3.9% |
| Municipal Revenue            | n/a | 2.6% |
| Technology                   | 10.9% | 1.2% |
| Utilities                    | 1.7% | n/a |
| **Total**                    | **55.4%** | **39.9%** |

 

| Top Ten Holdings                                    |
|-----------------------------------------------------|
| **% of Total Net Assets**                           |
| Gilead Sciences *(3.70% due 04/01/2024)*            | 3.0% |
| Unites States TreasuryNote *(2.00% due 11/30/2022)* | 2.9% |
| Republic of Chile *(3.875% due 08/05/2020)*         | 2.5% |
| Lowe's                                         | 2.5% |
| Vodafone*(4.625% due 07/15/2018)*                   | 2.4% |
| Jefferies Group *(5.125% due 04/13/2018)*           | 2.4% |
| Nestle ADS                                          | 2.4% |
| Honeywell International                             | 2.3% |
| Bellsouth Capital Funding *(7.875% due 02/15/2030)* | 2.2% |
| RPM International                                   | 2.2% |

 

| Asset Allocation                  |
|-----------------------------------|
| **% of Total Net Assets**         |   |
| Equity Securities                 | 55.4% | █ |  |
| Fixed Income Securities           | 39.9% | █ |
| Other assets (net of liabilities) | 4.7% | █ |
|                              |   |   |

 

| *20* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

----

### Sextant Core Fund

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

(photo omitted)

(photo omitted)

**Fiscal Year 2016**

Fiscal 2016 began with the S&P 500 index posting declines in each of the first three months. During this period, the Sextant Core Fund performed in line with its benchmarks and then continued to do so over the second three months as the markets rallied. Divergence from the benchmark began in August as company-specific issues emerged and widened in September with sector issues. The Fund's one-year return of 1.78% for the fiscal year ended November 30 was below the benchmark Dow Jones Moderate Portfolio Index return of 5.39% for the same period.

**Factors Affecting Past Performance**

***Equities***

The Sextant Core Fund's mandate allocates a 60% weight in equity securities, with two-thirds being US-domiciled companies and one-third foreign-domiciled. The Fund's average equity allocation for the year was 58%. The largest allocation, Health Care, detracted the most from portfolio performance as drug pricing became an election issue. Industrials and Information Technology were the primary return contributors throughout the year. Following the election, our holdings in the Financials sector helped performance, although not to the level of the benchmark.

***Fixed Income***

Consistent job growth, higher home prices, good car sales, and rising inflation finally convinced the US Federal Reserve to raise its target rate by 0.25%. The Personal Consumption Expenditure Index rose slightly to 1.94% year-over-year, close to the Fed's 2% target. The five-year US Treasury yield ended the period 0.15% higher, while the 30-year US Treasury yield fell -0.05%.

Despite the 2016 increase in yields, the absolute level of yields remains inadequate for savers. The yield famine created continued outperformance for long duration high-yield bonds. Modest increases in corporate earnings maintained corporate credit quality even as debt levels continued to rise. The tax-exempt municipal bond sector suffered characteristic underperformance as fiscal policy discussions promoting lower tax rates and fewer tax exemptions arose in Washington, D.C. China and Japan repatriated significant foreign exchange reserves previously invested in US Treasury securities, leading to a pronounced decline in US Treasury bond prices. Global investment-grade bonds outperformed handsomely in the first nine months of 2016, but the surge of the US dollar significantly reduced this outperformance. The Core Fund portfolio focused on high-grade US corporate taxable paper with average dollar-weighted maturity of about six years.

**Looking Forward**

Management of the Fund was reassigned at the end of fiscal year 2016. With regards to the equity portion of the Fund, we will maintain the 60% allocation, increase the number of positions, increase the average market capitalization of those positions, and emphasize the Fund's value and income characteristics. This transition will occur opportunistically. Turnover may temporarily elevate with these changes but remain within family's low turnover history.

In the fixed-income portion of the Fund, we expect to maintain the dollar-weighted average maturity near six years. The Federal Reserve will likely increase rates by 0.50% in 2017. Long-term inflation expectations remain subdued. The greatest risk for the US fixed-income markets in 2017 is a significant decline in the value of the US dollar. However, given the US Federal Reserve Bank's relatively firm policy posture compared to Japan, Europe, and China, the strength of the US dollar is likely to continue. The necessary foundation supporting the ownership of high quality fixed-income securities remains intact, and investment opportunities have recently improved.

**Management Fee Calculations**

The Sextant Core Fund calculates the performance part of its management fee by comparing the Fund's return to the return of Morningstar'sTM "Allocation — 50% to 70% Equity" category. The Fund's 12-month return (1.78%) was more than two percent below the MorningstarTM category average (4.17%) as of November 30, 2016. Therefore, the basic annual management fee of 0.50% was decreased by the maximum amount of 0.20% to 0.30% for the month of December 2016.

| *Annual Report* | *November 30, 2016* | *21* |
|-----------------|---------------------|------|

----

### Sextant Core Fund

| Schedule of Investments                               | As of November 30, 2016 |
|-------------------------------------------------------|-------------------------|
| **Common Stocks — 55.4%**                       | **Number of Shares**    | **Cost** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                                  |
| Communications                                        |
|                                                  |                    |
| **Internet Media**                                    |
|     Alphabet, Class A2                 | 100                     | $79,500 | $77,588 | United States | 0.9% |
|                                                  |
| **Telecom Carriers**                                  |
|    China Mobile ADS                         | 3,100                   | 167,063 | 169,539 | China | 2.0% |
|                                                  |
|                                                  | **246,563**             | **247,127** |   | **2.9%** |
|                                                  |
| Consumer Discretionary                                |
|                                                  |                    |
| **Airlines**                                          |
|    Delta Air Lines                          | 2,500                   | 105,471 | 120,450 | United States | 1.4% |
|                                                  |
| **Home Products Stores**                              |
|     Lowe's                             | 3,000                   | 140,347 | 211,650 | United States | 2.5% |
|                                                  |
|                                                  | **245,818**             | **332,100** |   | **3.9%** |
|                                                  |
| Consumer Staples                                      |
|                                                  |                    |
| **Beverages**                                         |
|     PepsiCo                                 | 1,750                   | 138,823 | 175,175 | United States | 2.0% |
|                                                  |
| **Household Products**                                |
|     Procter & Gamble                    | 2,000                   | 151,282 | 164,920 | United States | 1.9% |
|     Unilever ADS                            | 2,500                   | 86,545 | 99,950 | United Kingdom | 1.2% |
|                                                  | 237,827                 | 264,870 |   | 3.1% |
|                                                  |
| **Packaged Food**                                     |
|     Nestle ADS                              | 3,000                   | 222,189 | 201,900 | Switzerland | 2.4% |
|                                                  |
|                                                  | **598,839**             | **641,945** |   | **7.5%** |
|                                                  |
| Energy                                                |
|                                                  |                    |
| **Exploration & Production**                      |
|     ConocoPhillips                          | 2,000                   | 103,522 | 97,040 | United States | 1.1% |
|     Devon Energy                            | 2,300                   | 146,397 | 111,159 | United States | 1.3% |
|                                                  | 249,919                 | 208,199 |   | 2.4% |
|                                                  |
| **Integrated Oils**                                   |
|    Total ADS                                | 2,100                   | 113,290 | 100,086 | France | 1.2% |
|                                                  |
|                                                  | **363,209**             | **308,285** |   | **3.6%** |
|                                                  |
| Financials                                            |
|                                                  |                    |
| **Banks**                                             |
|     Australia & New Zealand Banking ADS | 6,000                   | 108,034 | 126,420 | Australia | 1.5% |
|     PNC Bank                                | 1,500                   | 105,037 | 165,810 | United States | 1.9% |
|     Skandinaviska Enskilda Banken, Class A  | 15,000                  | 153,003 | 149,245 | Sweden | 1.8% |
|     Toronto-Dominion Bank                   | 3,500                   | 140,270 | 165,865 | Canada | 1.9% |
|                                                  | 506,344                 | 607,340 |   | 7.1% |
|                                                  |
| *Continued on next page.*                             |

 

| *22* | *November 30, 2016* | *Annual Report* | *The accompanying notes are an integral part of these financial statements.* |
|------|---------------------|-----------------|------------------------------------------------------------------------------|

----

### Sextant Core Fund

| Schedule of Investments                                           |
|-------------------------------------------------------------------|
| **Common Stocks — 55.4%**                                   | **Number of Shares** | **Cost** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                                              |
| Financials *(continued)*                                          |
|                                                              |   |
| **REITS**                                                         |
|     Welltower                                           | 2,500 | $183,350 | $156,950 | United States | 1.8% |
|                                                              |
|                                                              | **689,694** | **764,290** |   | **8.9%** |
|                                                              |
| Health Care                                                       |
|                                                              |   |
| **Biotech**                                                       |
|     Biogen2                                        | 400 | 116,698 | 117,628 | United States | 1.4% |
|                                                              |
| **Large Pharma**                                                  |
|     Johnson & Johnson                               | 900 | 54,761 | 100,170 | United States | 1.1% |
|     Novo Nordisk ADS                                    | 4,000 | 93,254 | 134,400 | Denmark | 1.6% |
|                                                              | 148,015 | 234,570 |   | 2.7% |
|                                                              |
| **Life Science Equipment**                                        |
|     Abbott Laboratories                                 | 2,000 | 66,354 | 76,140 | United States | 0.9% |
|                                                              |
| **Specialty Pharma**                                              |
|    Pacira Pharmaceuticals2                         | 4,000 | 162,262 | 127,400 | United States | 1.5% |
|                                                              |
|                                                              | **493,329** | **555,738** |   | **6.5%** |
|                                                              |
| Industrials                                                       |
|                                                              |   |
| **Commercial & Residential Building Equipment & Systems** |
|     Honeywell International                             | 1,750 | 123,189 | 199,395 | United States | 2.3% |
|                                                              |
| **Flow Control Equipment**                                        |
|     Parker Hannifin                                     | 500 | 29,672 | 69,465 | United States | 0.8% |
|                                                              |
| **Rail Freight**                                                  |
|     Canadian National Railway                           | 1,600 | 40,237 | 106,928 | Canada | 1.3% |
|                                                              |
|                                                              | **193,098** | **375,788** |   | **4.4%** |
|                                                              |
| Materials                                                         |
|                                                              |   |
| **Basic & Diversified Chemicals**                             |
|     Praxair                                             | 700 | 44,349 | 84,210 | United States | 1.0% |
|                                                              |
| **Containers & Packaging**                                    |
|     3M                                                  | 975 | 83,159 | 167,446 | United States | 1.9% |
|                                                              |
| **Specialty Chemicals**                                           |
|     RPM International                                   | 3,500 | 110,094 | 185,185 | United States | 2.2% |
|                                                              |
|                                                              | **237,602** | **436,841** |   | **5.1%** |
|                                                              |
| *Continued on next page.*                                         |

 

| *The accompanying notes are an integral part of these financial statements.* | *Annual Report* | *November 30, 2016* | *23* |
|------------------------------------------------------------------------------|-----------------|---------------------|------|

----

### Sextant Core Fund

| Schedule of Investments                |
|----------------------------------------|
| **Common Stocks — 55.4%**        | **Number of Shares** | **Cost** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                   |
| **Technology**                         |   |
|                                   |
|  Application Software             |
|    SAP ADS                   | 1,800 | $150,685 | $149,796 | Germany | 1.7% |
|                                   |
|  Communications Equipment         |
|     Apple                    | 1,500 | 143,274 | 165,780 | United States | 1.9% |
|                                   |
|  Computer Hardware & Storage  |
|     HP                       | 11,500 | 171,048 | 177,100 | United States | 2.1% |
|                                   |
|  Infrastructure Software          |
|     Oracle                   | 4,000 | 156,417 | 160,760 | United States | 1.9% |
|                                   |
|   Semiconductor Devices           |
|     Xilinx                   | 2,500 | 101,993 | 134,950 | United States | 1.6% |
|                                   |
|   Semiconductor Manufacturing     |
|     Taiwan Semiconductor ADS | 5,000 | 80,820 | 148,450 | Taiwan | 1.7% |
|                                   |
|                                   | 804,237 | 936,836 |   | 10.9% |
|                                   |
| Utilities                              |   |
|                                   |
|  Integrated Utilities             |
|     NextEra Energy           | 1,250 | 90,644 | 142,788 | United States | 1.7% |
|                                   |
|                                   | 90,644 | 142,788 |   | 1.7% |
|                                   |
| Total common stocks                    |   | $3,963,033 | $4,741,738 |   | 55.4% |
|                                   |
| *Continued on next page.*              |

 

| Bond Quality Diversification      | *(unaudited)* |
|-----------------------------------|---------------|
| % of Total Net Assets             |          |
| Rated "Aaa"             | 6.2%          | █ |  |
| Rated "Aa1"             | 2.7%          | █ |
| Rated "Aa2"             | 2.4%          | █ |
| Rated "Aa3"             | 3.9%          | █ |
| Rated "A1"              | 2.5%          | █ |
| Rated "A2"              | 4.3%          | █ |
| Rated "A3"              | 5.5%          | █ |
| Rated "Baa1"            | 2.4%          | █ |
| Rated "Baa2"            | 1.2%          | █ |
| Rated "Baa3"            | 3.6%          | █ |
| Rated "Ba2"             | 1.7%          | █ |
| Not rated                         | 3.5%          | █ |
| Equity                            | 55.4%         | █ |
| Other assets (net of liabilities) | 4.7%          | █ |

*Credit ratings are determined by Moody's Investors Service, a Nationally Recognized Statistical Rating Organization. If Moody's does not rate a particular security, that security is categorized as not rated.*

 

| 24 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Core Fund

| Schedule of Investments                    | As of November 30, 2016 |
|--------------------------------------------|-------------------------|
| Corporate Bonds — 25.9%              | Coupon / Maturity       | Face Amount | Market Value | Percentage of Assets |
|                                       |
| Communications                             |                    |
|                                       |
|     America Movil                | 5.00% due 03/30/2020    | $100,000 | $107,330 | 1.3% |
|     Bellsouth Capital Funding    | 7.875% due 02/15/2030   | 150,000 | 189,640 | 2.2% |
|     Vodafone                     | 4.625% due 07/15/2018   | 200,000 | 208,293 | 2.4% |
|                                       |
|                                       | 450,000                 | 505,263 | 5.9% |
|                                       |
| Consumer Discretionary                     |                    |
|                                       |
|     ADT                          | 4.125% due 06/15/2023   | 150,000 | 142,875 | 1.7% |
|     Stanford University          | 4.013% due 05/01/2042   | 100,000 | 106,922 | 1.2% |
|     Walmart                      | 1.95% due 12/15/2018    | 100,000 | 101,125 | 1.2% |
|                                       |
|                                       | 350,000                 | 350,922 | 4.1% |
|                                       |
| Energy                                     |                    |
|                                       |
|     Boardwalk Pipelines          | 5.50% due 02/01/2017    | 100,000 | 100,587 | 1.2% |
|                                       |
|                                       | 100,000                 | 100,587 | 1.2% |
|                                       |
| Financials                                 |                    |
|                                       |
|     Blackstone Holdings          | 5.875% due 03/15/2021   | 100,000 | 112,685 | 1.3% |
|     General Electric Capital     | 5.35% due 04/15/2022    | 101,000 | 111,906 | 1.3% |
|     HSBC Holdings                | 4.25% due 03/14/2024    | 150,000 | 150,481 | 1.8% |
|     Jefferies Group              | 5.125% due 04/13/2018   | 200,000 | 206,802 | 2.4% |
|     PartnerRe Finance            | 5.50% due 06/01/2020    | 100,000 | 108,953 | 1.3% |
|                                       |
|                                       | 651,000                 | 690,827 | 8.1% |
|                                       |
| Health Care                                |                    |
|                                       |
|     Becton Dickinson             | 3.125% due 11/08/2021   | 100,000 | 102,053 | 1.2% |
|     Gilead Sciences              | 3.70% due 04/01/2024    | 250,000 | 256,762 | 3.0% |
|                                       |
|                                       | 350,000                 | 358,815 | 4.2% |
|                                       |
| Materials                                  |                    |
|                                       |
|     Air Products & Chemicals | 4.375% due 08/21/2019   | 100,000 | 106,542 | 1.2% |
|                                       |
|                                       | 100,000                 | 106,542 | 1.2% |
|                                       |
| Technology                                 |                    |
|                                       |
|     Cisco Systems                | 2.90% due 03/04/2021    | 100,000 | 102,224 | 1.2% |
|                                       |
|                                       | 100,000                 | 102,224 | 1.2% |
|                                       |
| Total corporate bonds                      |                    | $2,101,000 | $2,215,180 | 25.9% |
|                                       |
| Continued on next page.                    |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 25 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Core Fund

| Schedule of Investments                                                                                                        | As of November 30, 2016 |
|--------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| Government Bonds — 7.5%                                                                                                  | Coupon / Maturity       | Face Amount | Market Value | Percentage of Assets |
|                                                                                                                           |
| Foreign Government Bonds                                                                                                       |                    |
|                                                                                                                           |
|     Government of Mexico                                                                                             | 4.00% due 10/02/2023    | $100,000 | $99,750 | 1.2% |
|     New Zealand Government                                                                                           | 5.50% due 04/15/2023    | 100,000 | 82,011 | 0.9% |
|     Republic of Chile                                                                                                | 3.875% due 08/05/2020   | 200,000 | 211,920 | 2.5% |
|                                                                                                                           |
|                                                                                                                           | 400,000                 | 393,681 | 4.6% |
|                                                                                                                           |
| Government Bonds                                                                                                               |                    |
|                                                                                                                           |
|     United States Treasury Note                                                                                      | 2.00% due 11/30/2022    | 250,000 | 248,926 | 2.9% |
|                                                                                                                           |
|                                                                                                                           | 250,000                 | 248,926 | 2.9% |
|                                                                                                                           |
| Total government bonds                                                                                                         |                    | $650,000 | $642,607 | 7.5% |
|                                                                                                                           |
| Municipal Bonds — 6.5%                                                                                                   | Coupon / Maturity       | Face Amount | Market Value | Percentage of Assets |
|                                                                                                                           |
| General Obligation                                                                                                             |                    |
|                                                                                                                           |
|     City of Phoenix AZ                                                                                               | 5.269% due 07/01/2034   | 100,000 | 118,673 | 1.4% |
|     Lake Washington SCD #414 WA BAB                                                                                  | 4.906% due 12/01/2027   | 100,000 | 108,726 | 1.2% |
|     Skagit SCD #1                                                                                                    | 4.613% due 12/01/2022   | 100,000 | 109,419 | 1.3% |
|                                                                                                                           |
|                                                                                                                           | 300,000                 | 336,818 | 3.9% |
|                                                                                                                           |
| Revenue                                                                                                                        |                    |
|                                                                                                                           |
|     New York City Housing Dev. Corp                                                                                  | 2.65% due 05/01/2021    | 100,000 | 100,367 | 1.2% |
|     Tacoma WA Elec. Sys. Revenue                                                                                     | 5.966% due 01/01/2035   | 100,000 | 121,998 | 1.4% |
|                                                                                                                           |
|                                                                                                                           | 200,000                 | 222,365 | 2.6% |
|                                                                                                                           |
| Total municipal bonds                                                                                                          |                    | $500,000 | 559,183 | 6.5% |
|                                                                                                                           |
| Total investments                                                                                                              | (Cost = $7,393,371)     | 8,158,708 | 95.3% |
| Other assets (net of liabilities)                                                                                              |                    | 403,973 | 4.7% |
| Total net assets                                                                                                               |                    | $8,562,681 | 100.0% |
| 1 Country of domicile2 Non-income producing security

ADS: American Depositary ShareADR: American Depositary Receipt |

 

| 26 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Core Fund

| Statement of Assets and Liabilities                                                   |
|---------------------------------------------------------------------------------------|
| As of November 30, 2016                                                               |
|                                                                                  |
| Assets                                                                                |
|     Investments in securities, at value     (Cost $7,393,371)	 | $8,158,708 |
|     Cash                                                                    | 764,094 |
|     Dividends and interest receivable                                       | 59,821 |
|     Receivable for Fund shares sold                                         | 5,365 |
|         Total assets                                              | 8,987,988 |
| Liabilities                                                                           |
|     Payable for security purchases                                          | 410,430 |
|     Accrued expenses                                                        | 8,089 |
|     Payable advisory fees                                                   | 3,549 |
|     Payable to affiliates                                                   | 2,771 |
|     Accrued distribution fees                                               | 468 |
|         Total liabilities                                         | 425,307 |
| Net assets                                                                            | $8,562,681 |
|                                                                                  |
| Analysis of net assets                                                                |
|     Paid-in capital (unlimited shares authorized, without par value)        | $7,882,942 |
|     Undistributed net investment income                                     | 132,290 |
|     Accumulated net realized loss                                           | (217,842) |
|     Unrealized net appreciation on investments                              | 765,291 |
| Net assets applicable to Fund shares outstanding                                      | $8,562,681 |
|                                                                                  |
| Fund shares outstanding                                                               | **747,889** |
|                                                                                  |
| Net asset value, offering, and redemption price per share                             | $11.45 |

 

| Statement of Operations                                       |
|---------------------------------------------------------------|
| Year ended November 30, 2016                                  |
|                                                          |
| Investment income                                             |
|     Dividend income (net of foreign tax of $12,566) | $135,243 |
|     Interest income (net of foreign tax of $379)    | 88,848 |
|         Total investment income           | 224,091 |
| Expenses                                                      |
|     Investment adviser fees                         | 37,248 |
|     Distribution fees                               | 21,860 |
|     Filing and registration fees                    | 15,531 |
|     Audit fees                                      | 5,802 |
|     Retirement plan custodial fees                  | 2,920 |
|     Chief Compliance Officer expenses               | 2,353 |
|     Printing and postage                            | 2,244 |
|     Trustee fees                                    | 1,946 |
|     Other expenses                                  | 1,116 |
|     Custodian fees                                  | 478 |
|     Legal fees                                      | 186 |
|         Total gross expenses              | 91,684 |
|     Less custodian fee credits                      | (478) |
|         Net expenses                      | 91,206 |
| Net investment income                                         | $132,885 |
|                                                          |
|                                                          |
| Net realized loss from investments and foreign currency       | $(218,437) |
| Net increase in unrealized appreciation on investments        | 256,306 |
| Net gain on investments                                       | $37,869 |
|                                                          |
| Net increase in net assets resulting from operations          | $170,754 |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 27 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Core Fund

| Statements of Changes in Net Assets                                | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|--------------------------------------------------------------------|--------------------------|--------------------------|
| Increase (decrease) in net assets from operations                  |
| From operations                                                    |
|     Net investment income                                | $132,885                 | $125,212                 |
|     Net realized gain (loss) on investments              | (218,437)                | 326,144                  |
|     Net increase (decrease) in unrealized appreciation   | 256,306                  | (844,488)                |
|         Net increase (decrease) in net assets  | 170,754                  | (393,132)                |
| Distributions to shareowners from                                  |
|     Net investment income                                | -                        | (126,362)                |
|     Capital gains                                        | -                        | (325,045)                |
|         Total distributions                    | -                        | (451,407)                |
| Capital share transactions                                         |
|     Proceeds from sales of shares                        | 1,152,997                | 1,411,567                |
|     Value of shares issued in reinvestment of dividends  | -                        | 451,407                  |
|     Cost of shares redeemed                              | (1,196,560)              | (1,238,902)              |
|         Net increase (decrease) in net assets  | (43,563)                 | 624,072                  |
| Total increase (decrease) in net assets                            | 127,191                  | (220,467)                |
|                                                               |
| Net assets                                                         |
| Beginning of year                                                  | 8,435,490                | 8,655,957                |
| End of year                                                        | 8,562,681                | 8,435,490                |
|                                                               |
| Undistributed net investment income                                | $132,290                 | $-                       |
|                                                               |
| Shares of the Fund sold and redeemed                               |
|     Number of shares sold                                | 102,497                  | 115,898                  |
|     Number of shares issued in reinvestment of dividends | -                        | 40,125                   |
|     Number of shares redeemed                            | (104,336)                | (102,604)                |
| Net increase (decrease) in number of shares outstanding            | (1,839)                  | 53,419                   |

 

| Financial Highlights                                                              | For year ended November 30, |
|-----------------------------------------------------------------------------------|-----------------------------|
| Selected data per share of outstanding capital stock throughout each year:        | 2016                        | 2015 | 2014 | 2013 | 2012 |
| Net asset value at beginning of year                                              | $11.25                      | $12.43 | $11.78 | $10.81 | $10.35 |
| Income from investment operations                                                 |
|     Net investment income                                               | 0.18                        | 0.18 | 0.21 | 0.20 | 0.14 |
|     Net gains (losses) on securities (both realized and unrealized)     | 0.02                        | (0.72) | 0.78 | 0.98 | 0.46 |
| Total from investment operations                                                  | 0.20                        | (0.54) | 0.99 | 1.18 | 0.60 |
| Less distributions                                                                |
|     Dividends (from net investment income)                              | -                           | (0.18) | (0.21) | (0.21) | (0.14) |
|     Distributions (from capital gains)                                  | -                           | (0.46) | 0.13) | - | - |
| Total distributions                                                               | -                           | (0.64) | (0.34) | (0.21) | (0.14) |
|     Paid-in capital from early redemption fees                          | n/a                         | n/a | n/a | - | - |
|                                                                              |
| Net asset value at end of year                                                    | $11.45                      | $11.25 | $12.43 | $11.78 | $10.81 |
|                                                                              |
| Total return                                                                      | 1.78%                       | (4.38)% | 8.41% | 10.96% | 5.75% |
|                                                                              |
| Ratios / supplemental data                                                        |
| Net assets ($000), end of year                                                    | $8,563                      | $8,435 | $8,656 | $6,960 | $7,119 |
| Ratio of expenses to average net assets                                           |
|     Before custodian fee credits                                        | 1.05%                       | 1.02% | 1.17% | 1.01% | 1.32% |
|     After custodian fee credits                                         | 1.04%                       | 1.01% | 1.16% | 1.01% | 1.32% |
| Ratio of net investment income after  custodian fee credits to average net assets | 1.52%                       | 1.44% | 1.88% | 1.68% | 1.29% |
| Portfolio turnover rate                                                           | 39%                         | 24% | 14% | 29% | 19% |

 

| 28 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Global High Income Fund

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant Global High Income Fund2                | 13.72% | n/a | n/a | 1.06% |
| S&P Global 1200 Index                            | 4.51% | 10.39% | 4.49% | n/a |

Growth of $10,000

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 30, 2012 (the Fund's inception), to an identical amount invested in the S&P Global 1200 Index, a global stock market index covering nearly 70% of the world's equity markets. The graph shows that an investment in the Fund would have risen to $11,815 versus $12,968 in the index. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.

1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.89%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

2  The Sextant Global High Income Fund began operations on March 30, 2012. |

Fund Objective

The objective of the Global High Income Fund is high income, with a secondary objective of capital preservation.

| Portfolio Diversification |
|---------------------------|
|                      | % of Total Net Assets |
| Sectors                   | Equity | Fixed Income |
| Communications            | 3.6% | 4.6% |
| Consumer Discretionary    | n/a | 5.7% |
| Consumer Staples          | n/a | 2.4% |
| Energy                    | 11.2% | 3.1% |
| Financials                | 7.0% | 6.2% |
| Foreign Government        | n/a | 9.3% |
| Health Care               | 3.3% | 2.4% |
| Industrials               | 3.9% | 2.9% |
| Materials                 | 7.5% | 3.2% |
| Municipal Revenue         | n/a | 3.5% |
| Technology                | 5.5% | 4.2% |
| Utilities                 | n/a | 1.5% |
| Total                     | 42.0% | 49.0% |

 

| Top Ten Holdings                                      |
|-------------------------------------------------------|
| % of Total Net Assets                                 |
| Mexico Bonos Desarrollo *(6.50% due 06/10/2021)*      | 3.8% |
| T-Mobile *(6.50% due 01/15/2026)*                     | 3.6% |
| Microchip Technology                                  | 3.5% |
| Jefferies Group *(5.125% due 01/20/2023)*             | 3.4% |
| Itau Unibanco Holding ADS                             | 3.0% |
| BHP Billiton                                          | 3.0% |
| Burlington Northern Santa Fe *(5.05% due 03/01/2041)* | 2.9% |
| Nokia *(5.375% due 05/15/2019)*                       | 2.8% |
| Royal Bank of Scotland *(6.125% due 12/15/2022)*      | 2.8% |
| Federal Republic of Brazil *(8.50% due 01/05/2024)*   | 2.7% |

 

| Asset Allocation                  |
|-----------------------------------|
| % of Total Net Assets             |   |
| Equity Securities                 | 42.0% | █ |  |
| Fixed Income Securities           | 49.0% | █ |
| Other assets (net of liabilities) | 9.0% | █ |
|                              |

 

| Annual Report | November 30, 2016 | 29 |
|---------------|-------------------|----|

----

### Sextant Global High Income Fund

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

(photo omitted)

**Fiscal Year 2016**

The Sextant Global High Income Fund completed fiscal year 2016 with a total return of 13.72% and a 30-day yield of 3.02%.

The Fund's return exceeded its benchmarks and peer group:  The S&P Global 1200 returned 4.51%;  the Bloomberg Global High Yield Corporate Bond Index returned 10.25%;  and the Morningstar World Allocation Category peer group returned an average of 2.53%.

**Factors Affecting Past Performance**

The US stock market once again ran ahead of international stocks during the fiscal year. During the 12 months ended November 30, 2016, the S&P 500 Index of US stocks returned 8.06%, while the MSCI EAFE Index that measures non-US developed markets returned -3.17%. This trend has continued to penalize the Fund for its limited allocation of just under 10% to US stocks at fiscal year-end.

A strong rebound of raw materials producers' share prices, along with a recovery in Brazil's currency and stock market, helped boost the Fund's returns. Several speculative corporate bonds we held also rallied from depressed levels, and several were called as a result of acquisitions of their issuers. Weakness in the Mexican peso was a detractor from Fund performance.

**Looking Forward**

***Equities***

Global stock markets remained resilient during the year, despite some unexpected political upheaval. Republicans' control of the US government following the election of Donald Trump to the presidency foretells an end to gridlock but also widens the range of possible policies and outcomes, increasing uncertainty. We continue to favor non-US equities due to more attractive valuation.

***Fixed Income***

Years of war against deflationary forces by the world's central banks, now combined with the possibility of fiscal stimulus from a Republican-controlled US government, may have finally created an environment that will allow real and nominal interest rates to normalize toward higher levels. Indeed, US rates rose quite sharply after Trump's election in anticipation of increased fiscal accommodation. While rising rates may hurt the returns of our bonds in the shorter term, they ultimately allow us to reinvest sales proceeds, bond maturities, and interest and dividend payments at more attractive rates.

***Foreign Currencies***

With the Federal Reserve having embarked on a path of rate tightening well ahead of its international counterparts, investors have driven the US dollar higher against other major currencies, such as the yen and euro, while the pound continues to suffer in the aftermath of the "Brexit" vote for secession from the European Union. We continue to appraise exchange rates in the context of their relative purchasing power, and a number of foreign currencies now appear to offer quite attractive total returns relative to those available to dollar investors.

**Management Fee Calculations**

The Sextant Global High Income Fund calculates the performance part of its management fee by comparing the Fund's return to the return of Morningstar'sTM "World Allocation" category. The Fund's 12-month return (13.72%) was more than two percent above the MorningstarTM category average (2.53%) at month-end November 30, 2016. Therefore, the basic annual management fee of 0.50% was increased by the maximum 0.20% to 0.70% for the month of December 2016. Note that significant portions of the Fund's expenses are waived due to the adviser's voluntary cap on total Fund expenses.

 

| Bond Quality Diversification      | *(unaudited)* |
|-----------------------------------|---------------|
| % of Total Net Assets             |          |
| Rated "A3"              | 6.7%          | █ |  |
| Rated "Baa2"            | 6.6%          | █ |
| Rated "Baa3"            | 8.0%          | █ |
| Rated "Ba1"             | 2.8%          | █ |
| Rated "Ba2"             | 7.4%          | █ |
| Rated "Ba3"             | 3.6%          | █ |
| Rated "B1"              | 2.4%          | █ |
| Rated "B2"              | 1.4%          | █ |
| Rated "B3"              | 1.8%          | █ |
| Rated "Caa1"            | 2.4%          | █ |
| Rated "Caa3"            | 0.9%          | █ |
| Not rated                         | 5.0%          | █ |
| Equity                            | 42.0%         | █ |
| Other assets (net of liabilities) | 9.0%          | █ |

Credit ratings are determined by Moody's Investors Service, a Nationally Recognized Statistical Rating Organization. If Moody's does not rate a particular security, that security is categorized as not rated.

 

| 30 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

----

### Sextant Global High Income Fund

| Schedule of Investments                       | As of November 30, 2016 |
|-----------------------------------------------|-------------------------|
| Common Stocks — 42.0%                   | Number of Shares        | Cost | Market Value | Country1 | Percentage of Assets |
|                                          |
| Communications                                |                    |
|                                          |
|  Telecom Carriers                        |
|     Orange ADS                      | 10,000                  | $147,658 | $142,800 | France | 1.9% |
|     SK Telecom ADS                  | 6,200                   | 82,085 | 131,440 | South Korea | 1.7% |
|                                          |
|                                          | 229,743                 | 274,240 |   | 3.6% |
|                                          |
| Energy                                        |                    |
|                                          |
|  Exploration & Production            |
|     CNOOC ADR                       | 1,400                   | 226,082 | 185,332 | China | 2.4% |
|                                          |
|  Integrated Oils                         |
|     Royal Dutch Shell ADS           | 3,000                   | 200,418 | 153,300 | Netherlands | 2.0% |
|     Statoil ADS                     | 10,000                  | 186,050 | 174,000 | Norway | 2.3% |
|     Total ADS                       | 3,800                   | 202,606 | 181,108 | France | 2.4% |
|                                          | 589,074                 | 508,408 |   | 6.7% |
|                                          |
|  Oil & Gas Services & Equip      |
|     National Oilwell Varco          | 4,200                   | 139,818 | 156,912 | United States | 2.1% |
|                                          |
|                                          | 954,974                 | 850,652 |   | 11.2% |
|                                          |
| Financials                                    |                    |
|                                          |
|  Banks                                   |
|     Skandinaviska Enskilda Banken   | 13,000                  | 136,631 | 129,345 | Sweden | 1.7% |
|                                          |
|   Diversified Banks                      |
|     Itau Unibanco Holding ADS       | 22,000                  | 207,301 | 227,480 | Brazil | 3.0% |
|                                          |
|  Private Equity                          |
|     Apollo Global Management        | 9,000                   | 142,767 | 173,340 | United States | 2.3% |
|                                          |
|                                          | 486,699                 | 530,165 |   | 7.0% |
|                                          |
| Health Care                                   |                    |
|                                          |
|  Large Pharma                            |
|     GlaxoSmithKline ADS             | 3,100                   | 143,250 | 117,149 | United Kingdom | 1.6% |
|     Novartis ADS                    | 1,900                   | 110,053 | 130,644 | Switzerland | 1.7% |
|                                          |
|                                          | 253,303                 | 247,793 |   | 3.3% |
|                                          |
| Industrials                                   |                    |
|                                          |
|  Infrastructure Construction             |
|     CCR                             | 30,000                  | 174,956 | 130,483 | Brazil | 1.7% |
|     Hopewell Highway Infrastructure | 325,000                 | 168,010 | 166,637 | China | 2.2% |
|                                          |
|                                          | 342,966                 | 297,120 |   | 3.9% |
|                                          |
| Materials                                     |                    |
|                                          |
|  Agricultural Chemicals                  |
|     Potash Corp of Saskatchewan     | 8,000                   | 221,690 | 145,840 | Canada | 2.0% |
|                                          |
| Continued on next page.                       |

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 31 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Global High Income Fund

| Schedule of Investments             | As of November 30, 2016 |
|-------------------------------------|-------------------------|
| Common Stocks — 42.0%         | Number of Shares        | Cost | Market Value | Country1 | Percentage of Assets |
|                                |
| Materials *(continued)*             |                    |
|                                |
|   Base Metals                  |
|     South 32              | 19,000                  | $134,773 | $191,425 | Australia | 2.5% |
|                                |
|   Steel Raw Material Suppliers |
|     BHP Billiton          | 6,000                   | 207,424 | 225,240 | Australia | 3.0% |
|                                |
|                                | 563,887                 | 562,505 |   | 7.5% |
|                                |
| Technology                          |                    |
|                                |
|  Semiconductor Devices         |
|     HP                    | 10,000                  | 151,598 | 154,000 | United States | 2.0% |
|     Microchip Technology  | 4,000                   | 136,113 | 264,720 | United States | 3.5% |
|                                |
|                                | 287,711                 | 418,720 |   | 5.5% |
|                                |
| Total Common Stock                  |                    | $3,119,283 | $3,181,195 |   | 42.0% |

 

| Corporate Bonds — 36.2%                 | Coupon / Maturity     | Face Amount | Market Value | Country1 | Percentage of Assets |
|-----------------------------------------------|-----------------------|-------------|--------------|---------------|----------------------|
|                                          |
| Communications                                |                  |
|                                          |
|     Puget Sound Energy              | 6.974% due 06/01/2067 | $91,000     | $77,350      | United States | 1.0%                 |
|     T-Mobile                        | 6.50% due 01/15/2026  | 250,000     | 270,000      | United States | 3.6%                 |
|                                          |
|                                          | 341,000               | 347,350     |         | 4.6%          |
|                                          |
| Consumer Discretionary                        |                  |
|                                          |
|     ADT                             | 4.125% due 06/15/2023 | 150,000     | 142,875      | United States | 1.9%                 |
|     GAP                             | 5.95% due 04/12/2021  | 100,000     | 104,968      | United States | 1.4%                 |
|     Rent-A-Center                   | 6.625% due 11/15/2020 | 200,000     | 185,000      | United States | 2.4%                 |
|                                          |
|                                          | 450,000               | 432,843     |         | 5.7%          |
|                                          |
| Consumer Staples                              |                  |
|                                          |
|     Grupo Bimbo                     | 4.875% due 06/27/2044 | 200,000     | 181,515      | Mexico        | 2.4%                 |
|                                          |
|                                          | 200,000               | 181,515     |         | 2.4%          |
|                                          |
| Energy                                        |                  |
|                                          |
|     Chesapeake Midstream Partners   | 6.125% due 07/15/2022 | 125,000     | 128,273      | United States | 1.7%                 |
|     Goodrich Petroleum2,3 | 8.875% due 03/15/2019 | 400,000     | 560          | United States | 0%4                  |
|     Petrobras International Finance | 6.875% due 01/20/2040 | 50,000      | 41,562       | Brazil        | 0.5%                 |
|     Petrobras International Finance | 6.75% due 01/27/2041  | 80,000      | 65,476       | Brazil        | 0.9%                 |
|                                          |
|                                          | 655,000               | 235,871     |         | 3.1%          |
|                                          |
| Continued on next page.                       |

 

| 32 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Global High Income Fund

| Schedule of Investments                    | As of November 30, 2016 |
|--------------------------------------------|-------------------------|
| Corporate Bonds — 36.2%              | Coupon / Maturity       | Face Amount | Market Value | Country1 | Percentage of Assets |
|                                       |
| Financials                                 |                    |
|                                       |
|     Jefferies Group              | 5.125% due 01/20/2023   | $250,000 | $258,381 | United States | 3.4% |
|     Royal Bank of Scotland       | 6.125% due 12/15/2022   | 200,000 | 207,233 | United Kingdom | 2.8% |
|                                       |
|                                       | 450,000                 | 465,614 |   | 6.2% |
|                                       |
| Health Care                                |                    |
|                                       |
|     Tenet Health Care            | 8.125% due 04/01/2022   | 200,000 | 183,000 | United States | 2.4% |
|                                       |
|                                       | 200,000                 | 183,000 |   | 2.4% |
|                                       |
| Industrials                                |                    |
|                                       |
|     Burlington Northern Santa Fe | 5.05% due 03/01/2041    | 200,000 | 222,680 | United States | 2.9% |
|                                       |
|                                       | 200,000                 | 222,680 |   | 2.9% |
|                                       |
| Materials                                  |                    |
|                                       |
|     Allegheny Technologies       | 7.875% due 08/15/2023   | 150,000 | 139,125 | United States | 1.8% |
|     AngloGold Ashanti Holdings   | 5.375% due 04/15/2020   | 100,000 | 101,255 | South Africa | 1.4% |
|                                       |
|                                       | 250,000                 | 240,380 |   | 3.2% |
|                                       |
| Technology                                 |                    |
|                                       |
|     Hewlett Packard              | 4.65% due 12/09/2021    | 100,000 | 106,434 | United States | 1.4% |
|     Nokia                        | 5.375% due 05/15/2019   | 199,750 | 209,238 | Finland | 2.8% |
|                                       |
|                                       | 299,750                 | 315,672 |   | 4.2% |
|                                       |
| Utilities                                  |                    |
|                                       |
|     Iberdrola International      | 5.75% due 02/27/2049    | 100,000 | 111,841 | Spain | 1.5% |
|                                       |
|                                       | 100,000                 | 111,841 |   | 1.5% |
|                                       |
| Total Corporate Bonds                      |                    | $3,145,750 | $2,736,766 |   | 36.2% |

 

| Government Bonds — 9.3%            | Coupon / Maturity     | Face Amount | Market Value | Country1 | Percentage of Assets |
|------------------------------------------|-----------------------|-------------|--------------|---------------|----------------------|
|                                     |
| Foreign Government Bonds                 |                  |
|                                     |
|     Colombia Republic          | 8.375% due 02/15/2027 | 125,000     | 151,250      | Colombia      | 2.0%                 |
|     Federal Republic of Brazil | 8.50% due 01/05/2024  | 750,000     | 201,801      | Brazil        | 2.7%                 |
|     Mexico Bonos Desarrollo    | 6.50% due 06/10/2021  | MXN 60,000  | 286,373      | Mexico        | 3.8%                 |
|     Republic of South Africa   | 8.25% due 09/15/2017  | ZAR 900,000 | 64,169       | South Africa  | 0.8%                 |
|                                     |
|                                     | 703,593               |        | 9.3%         |
|                                     |
| Continued on next page.                  |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 33 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Global High Income Fund

| Schedule of Investments                                                                                    | As of November 30, 2016                                        |
|------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
| Municipal Bonds — 3.5%                                                                               | Coupon / Maturity                                              | Face Amount | Market Value | Country1 | Percentage of Assets |
|                                                                                                       |
| Revenue                                                                                                    |                                                           |
|                                                                                                       |
|     Colony TX Local Development                                                                  | 7.00% due 10/01/2027                                           | $100,000 | $103,258 | United States | 1.4% |
|     Colony TX Local Development                                                                  | 7.625% due 10/01/2042                                          | 50,000 | 49,001 | United States | 0.6% |
|     Colony TX NFM Sales Tax Revenue                                                              | 7.25% due 10/01/2033                                           | 50,000 | 48,096 | United States | 0.6% |
|     Puerto Rico Aqueduct & Sewer                                                             | 5.00% due 07/01/2019                                           | 85,000 | 65,772 | Puerto Rico | 0.9% |
|                                                                                                       |
|                                                                                                       | 285,000                                                        | 266,127 |   | 3.5% |
|                                                                                                       |
| Total investments                                                                                          | (Cost = $7,334,291)                                            |   | 6,887,681 |   | 91.0% |
| Other assets (net of liabilities)                                                                          |                                                           | 682,215 |   | 9.0% |
| Total net assets                                                                                           |                                                           | $7,569,896 |   | 100.0% |
| 1 Country of domicile2 Non-income producing3 Security in default4 Amount is less than 0.05% | ADS: American Depositary ShareADR: American Depositary Receipt |

 

 

| Countries                                                                                      | *(unaudited)* |
|------------------------------------------------------------------------------------------------|---------------|
|                                                                                           |
| Other assets (net of liabilities) 9.0%

Weightings shown are a percentage of total net assets. |

 

| 34 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Global High Income Fund

| Statement of Assets and Liabilities                                               |
|-----------------------------------------------------------------------------------|
| As of November 30, 2016                                                           |
|                                                                              |
| Assets                                                                            |
|     Investments in securities, at value     (Cost $7,334,291) | $6,887,681 |
|     Cash                                                                | 1,171,278 |
|     Receivable for security sales                                       | 520,936 |
|     Dividends and interest receivable                                   | 121,127 |
|     Receivable for Fund shares sold                                     | 2,048 |
|     Reimbursement due from adviser                                      | 1,052 |
|         Total assets                                          | 8,704,122 |
| Liabilities                                                                       |
|     Payable for security purchases                                      | 1,122,418 |
|     Accrued expenses                                                    | 7,613 |
|     Payable for Fund shares redeemed                                    | 2,591 |
|     Payable to affiliates                                               | 1,191 |
|     Accrued distribution fees                                           | 413 |
|         Total liabilities                                     | 1,134,226 |
| Net assets                                                                        | $7,569,896 |
|                                                                              |
| Analysis of net assets                                                            |
| Paid-in capital (unlimited shares authorized, without par value)                  | $7,699,728 |
| Undistributed net investment income                                               | 337,964 |
| Accumulated net realized loss                                                     | (20,078) |
| Unrealized net depreciation on investments                                        | (447,718) |
| Net assets applicable to Fund shares outstanding                                  | $7,569,896 |
|                                                                              |
| Fund shares outstanding                                                           | 748,493 |
|                                                                              |
| Net asset value, offering and redemption price per share                          | $10.11 |

 

| Statement of Operations                                                     |
|-----------------------------------------------------------------------------|
| Year ended November 30, 2016                                                |
|                                                                        |
| Investment income                                                           |
|     Interest income                                               | $250,586 |
|     Dividend Income (net of foreign tax of $20,183)               | 153,934 |
|     Miscellaneous income                                          | 4 |
|         Total investment income                         | 404,524 |
| Expenses                                                                    |
|     Investment adviser fees                                       | 32,813 |
|     Filing and registration fees                                  | 19,061 |
|     Distribution fees                                             | 17,812 |
|     Audit fees                                                    | 5,205 |
|     Printing and postage                                          | 2,121 |
|     Chief Compliance Officer expenses                             | 2,015 |
|     Trustee fees                                                  | 1,633 |
|     Retirement plan custodial fees                                | 1,110 |
|     Other expenses                                                | 969 |
|     Custodian fees                                                | 544 |
|     Legal fees                                                    | 174 |
|         Total gross expenses                            | 83,457 |
|     Less adviser fees waived                                      | (18,635) |
|     Less custodian fee credits                                    | (544) |
|         Net expenses                                    | 64,278 |
| Net investment income                                                       | $340,246 |
|                                                                        |
|                                                                        |
| Net realized gain from investments and foreign currency                     | $84,123 |
| Net decrease in unrealized depreciation on investments and foreign currency | 508,465 |
| Net gain on investments                                                     | $592,588 |
|                                                                        |
| Net increase in net assets resulting from operations                        | $932,834 |

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 35 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Global High Income Fund

| Statements of Changes in Net Assets                                   | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|-----------------------------------------------------------------------|--------------------------|--------------------------|
| Increase (decrease) in net assets from operations                     |
| From operations                                                       |
|     Net investment income                                   | $340,246                 | $379,693                 |
|     Net realized gain (loss) on investments                 | 84,123                   | (43,833)                 |
|     Net decrease in unrealized  depreciation (appreciation) | 508,465                  | (1,242,969)              |
|         Net increase (decrease) in net assets     | 932,834                  | (907,109)                |
| Distributions to shareowners from                                     |
|     Net investment income                                   | -                        | (382,139)                |
|         Total Distributions                       | -                        | (382,139)                |
| Capital share transactions                                            |
|     Proceeds from sales of shares                           | 1,013,284                | 1,492,429                |
|     Value of shares issued in reinvestment of dividends     | -                        | 373,666                  |
|     Cost of shares redeemed                                 | (1,327,881)              | (1,332,329)              |
|         Net increase (decrease) in net assets     | (314,597)                | 533,766                  |
| Total increase (decrease) in net assets                               | 618,237                  | (755,482)                |
|                                                                  |
| Net assets                                                            |
| Beginning of year                                                     | 6,951,659                | 7,707,141                |
| End of year                                                           | 7,569,896                | 6,951,659                |
|                                                                  |
| Undistributed net investment income                                   | $337,964                 | $-                       |
|                                                                  |
| Shares of the Fund sold and redeemed                                  |
|     Number of shares sold                                   | 110,876                  | 144,244                  |
|     Number of shares issued in reinvestment of dividends    | -                        | 42,032                   |
|     Number of shares redeemed                               | (144,490)                | (133,404)                |
| Net increase (decrease) in number of shares outstanding               | (33,614)                 | 52,872                   |

 

| Financial Highlights                                                                             | For Year ended November 30, | Period ended1 |
|--------------------------------------------------------------------------------------------------|-----------------------------|--------------------|
| Selected data per share of outstanding capital stock throughout each year:                       | 2016                        | 2015               | 2014 | 2013 | Nov. 30, 2012 |
| Net asset value at beginning of year                                                             | $8.89                       | $10.57             | $10.51 | $9.90 | $10.00 |
| Income from investment operations                                                                |
|     Net investment income                                                              | 0.45                        | 0.52               | 0.48 | 0.37 | 0.18 |
|     Net gains (losses) on securities (both realized and unrealized)                    | 0.77                        | (1.68)             | 0.07 | 0.63 | (0.10) |
| Total from investment operations                                                                 | 1.22                        | (1.16)             | 0.55 | 1.00 | 0.08 |
| Less distributions                                                                               |
|     Dividends (from net investment income)                                             | -                           | (0.52)             | (0.49) | (0.39) | (0.18) |
| Total distributions                                                                              | -                           | (0.52)             | (0.49) | (0.39) | (0.18) |
|                                                                                             |
| Net asset value at end of year                                                                   | $10.11                      | $8.89              | $10.57 | $10.51 | $9.90 |
|                                                                                             |
| Total return                                                                                     | 13.72%                      | (11.01)%           | 5.27% | 10.06% | 0.76%2 |
|                                                                                             |
| Ratios / supplemental data                                                                       |
| Net assets ($000), end of period                                                                 | $7,570                      | $6,952             | $7,707 | $6,388 | $4,730 |
| Ratio of expenses to average net assets                                                          |
|     Before fee waivers                                                                 | 1.17%                       | 1.06%              | 1.41% | 1.25% | 1.22%3 |
|     After fee waivers                                                                  | 0.91%                       | 0.90%              | 0.91% | 0.91% | 0.90%3 |
|     After fee waivers and custodian fee credits                                        | 0.90%                       | 0.89%              | 0.90% | 0.90% | 0.90%3 |
| Ratio of net investment income after fee waivers and custodian fee credits to average net assets | 4.78%                       | 4.87%              | 4.75% | 3.87% | 3.03%3 |
| Portfolio turnover rate                                                                          | 26%                         | 40%                | 11% | 23% | 32%2 |
| *1 Operations commenced March 30, 20122 Not annualized3 Annualized*               |

 

| 36 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

### Sextant Growth Fund

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant Growth Fund                                  | -3.22% | 10.21% | 5.05% | 0.90% |
| S&P 500 Index                                    | 8.06% | 14.43% | 6.88% | n/a |

Growth of $10,000

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2006, to an identical amount invested in the S&P 500 Index, an index comprised of 500 widely held common stocks considered to be representative of the US stock market in general. The graph shows that an investment in the Fund would have risen to $16,369 versus $19,462 in the index. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.

1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods. |

Fund Objective

The objective of the Growth Fund is long-term capital growth.

| Top Ten Holdings                  |                     | Portfolio Diversification                |
|-----------------------------------|--------------------------|------------------------------------------|
| % of Total Net Assets             | % of Total Net Assets    |                                     |
| Apple                             | 5.5%                     | Internet Media                           | 8.9% | █ |  |
| TJX Companies                     | 5.4%                     | Apparel, Footwear & Accessory Design | 5.8% | █ |
| Starbucks                         | 4.7%                     | Communications Equipment                 | 5.5% | █ |
| Alphabet, Class A                 | 4.5%                     | Consumer Finance                         | 5.5% | █ |
| Facebook, Class A                 | 4.4%                     | Specialty Apparel Stores                 | 5.4% | █ |
| RPM International                 | 3.6%                     | Biotech                                  | 5.3% | █ |
| Nike, Class B                     | 3.6%                     | Restaurants                              | 4.7% | █ |
| Stanley Black & Decker        | 3.4%                     | Home Products Stores                     | 4.6% | █ |
| Amazon.com                        | 3.3%                     | Specialty Chemicals                      | 4.6% | █ |
| Microsoft                         | 3.3%                     | Home Improvement                         | 3.4% | █ |
|                              | E-Commerce Discretionary | 3.3%                                     | █ |
| Infrastructure Software           | 3.3%                     | █                                  |
| Application Software              | 3.3%                     | █                                  |
| Diversified Banks                 | 3.2%                     | █                                  |
| Auto Parts                        | 3.2%                     | █                                  |
| Other Commercial Services         | 3.1%                     | █                                  |
| Industries < 3%                | 21.6%                    | █                                  |
| Other assets (net of liabilities) | 5.3%                     | █                                  |

| Annual Report | November 30, 2016 | 37 |
|---------------|-------------------|----|

----

### Sextant Growth Fund

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

(photo omitted)

**Fiscal Year 2016**

For the fiscal year ended November 30, 2016, the Sextant Growth Fund Investor shares returned -3.22%, underperforming the 4.21% gain for the Russell 1000 Growth Index and the 8.06% gain for the S&P 500. The Russell 1000 Growth Index is a stock-specific benchmark tracked by domestic equity investors focused on larger capitalization growth companies. The S&P 500 Index is considered a general proxy for large capitalization stock performance in the United States. The Sextant Growth Fund's Morningstar US Large Growth category peer group returned an average of 0.98% during the Fund's fiscal year.

**Factors Affecting Past Performance**

Management of the Sextant Growth Fund changed shortly after the start of fiscal 2016 and, in the early aftermath of the change, the Fund suffered from poor selection, primarily in the Technology sector. The most significant was a nearly 50% one-day reduction in the value of Tableau Software, a supplier of  "Big Data" visualization software. Tableau was considered to have a strong growth opportunity. It's profitability, however, was minimal and the outlook was further clouded by management statements made in conjunction with its annual results. We exited the positon shortly thereafter, but that loss alone was sufficient to result in a negative return from our Technology investments in fiscal 2016, despite good performances from Adobe, Google, Apple, Facebook, and Microsoft.

Throughout the first half of the year the Fund continued to face difficulties from various investments. These included Allergan, which lost value when Pfizer withdrew from a planned acquisition; Signature Bank of New York, which saw its taxi medallion lending business damaged by the rise of Uber and Lyft; and Under Armour, which engaged in an ill-considered share class split, suffered from the bankruptcy of Sports Authority, and could not generate sufficient growth to support its lofty valuation. The first two of these examples have been eliminated from the portfolio, while the third has been reduced in size.

The situation began to improve in the second half of the year. In February, we began adding RPM, a diversified residential and commercial coatings company. It appreciated almost 30% by year-end. In mid-November, Harman International, the global leader in automotive infotainment, accepted a bid from Samsung Electronics that pushed the share price up 25% in a day. Alaska Air, which declined through the first half of the year, recovered from $55.66 on June 27th to $82.27 by the end of the fiscal year. Although the benefits from lower oil prices have come to an end, the merger with Virgin America should create additional opportunities to achieve efficiencies.

**Looking Forward**

Given the election of Donald Trump to the presidency and Republican control of congress, there is a greater level of uncertainty than usual as we enter 2017. The president-elect's views are often at odds with both parties, especially in the areas of foreign affairs and trade, and we cannot ignore the possibility of disruptions to existing alliances and agreements. Today's corporations have complex and global supply chains, and the talk of walls and border taxes must be causing consternation in boardrooms across the country. On the other hand, Trump and the Republican party do agree on regulation and taxes. A lowering of corporate taxes and a possible tax holiday to repatriate overseas cash could provide a significant boost to earnings and stock prices. Even here, however, we can only guess at the eventual outcome since talk of reduced rates is often offset by plans to eliminate various deductions, such as for interest paid. On balance, we believe the outlook for US equities to be reasonably positive for 2017 as consumer confidence is up and the US economy appears to be gaining momentum. Unemployment has greatly diminished, and we are beginning to see wage growth. The December Federal Reserve rate hike also gives hope for an end to the period of extraordinary monetary policy, which has served mainly to distort economic decision-making and asset prices.

**Management Fee Calculations**

The Sextant Growth Fund calculates the performance part of its management fee by comparing the Fund's return to the average return in Morningstar's "Large Growth" category. The Fund's 12-month return (-0.87%) was more than 2 percent below the MorningstarTM category average (4.57%) at month-end November 30, 2016. Therefore, the basic annual management fee of 0.50% was decreased by the maximum 0.20% to 0.30% for the month of December 2016.

 

| 38 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

----

### Sextant Growth Fund

| Schedule of Investments                        | As of November 30, 2016 |
|------------------------------------------------|-------------------------|
| Common Stock — 94.7%                     | Number of Shares        | Cost | Market Value | Percentage of Assets |
|                                           |
| Communications                                 |                    |
|                                           |
|  Internet Media                           |
|     Alphabet, Class A1          | 1,998                   | $1,175,995 | $1,550,208 | 4.5% |
|     Facebook, Class A1          | 12,984                  | 700,580 | 1,537,565 | 4.4% |
|                                           |
|                                           | 1,876,575               | 3,087,773 | 8.9% |
|                                           |
| Consumer Discretionary                         |                    |
|                                           |
|  Airlines                                 |
|     Alaska Air                       | 11,222                  | 195,953 | 923,234 | 2.7% |
|                                           |
|  Apparel, Footwear & Accessory Design |
|     Nike, Class B                    | 24,510                  | 1,330,831 | 1,227,216 | 3.6% |
|     Under Armour1               | 13,390                  | 575,823 | 412,412 | 1.2% |
|     VF                               | 6,500                   | 419,684 | 354,315 | 1.0% |
|                                           | 2,326,338               | 1,993,943 | 5.8% |
|                                           |
|  Auto Parts                               |
|     Harman International Industries  | 10,000                  | 806,850 | 1,093,700 | 3.2% |
|                                           |
|  E-Commerce Discretionary                 |
|     Amazon.com1                 | 1,529                   | 278,191 | 1,147,621 | 3.3% |
|                                           |
|  Home Improvement                         |
|     Stanley Black & Decker       | 9,984                   | 917,587 | 1,184,402 | 3.4% |
|                                           |
|  Home Products Stores                     |
|     Home Depot                       | 5,464                   | 611,366 | 707,042 | 2.0% |
|     Lowe's                           | 12,500                  | 241,788 | 881,875 | 2.6% |
|                                           | 853,154                 | 1,588,917 | 4.6% |
|                                           |
|  Jewelry & Watch Stores               |
|     Signet Group                     | 10,000                  | 1,164,872 | 912,900 | 2.6% |
|                                           |
|  Other Commercial Services                |
|     Ecolab                           | 9,230                   | 1,049,561 | 1,077,418 | 3.1% |
|                                           |
|  Restaurants                              |
|     Starbucks                        | 27,758                  | 1,298,606 | 1,609,131 | 4.7% |
|                                           |
|  Specialty Apparel Stores                 |
|     TJX Companies                    | 23,847                  | 1,548,222 | 1,868,174 | 5.4% |
|                                           |
|                                           | 10,439,334              | 13,399,440 | 38.8% |
|                                           |
| Continued on next page.                        |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 39 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

## Sextant Growth Fund

| Schedule of Investments                                             | As of November 30, 2016 |
|---------------------------------------------------------------------|-------------------------|
| Common Stock — 94.7%                                          | Number of Shares        | Cost | Market Value | Percentage of Assets |
|                                                                |
| Consumer Staples                                                    |                    |
|                                                                |
|  Food & Drug Stores                                        |
|     CVS Health                                            | 12,709                  | $556,086 | $977,195 | 2.8% |
|                                                                |
|  Mass Merchants                                                |
|     Costco Wholesale                                      | 6,243                   | 784,598 | 937,137 | 2.7% |
|                                                                |
|                                                                | 1,340,684               | 1,914,332 | 5.5% |
|                                                                |
| Financials                                                          |                    |
|                                                                |
|   Consumer Finance                                             |
|     FLEETCOR Technologies1                           | 6,600                   | 970,514 | 985,644 | 2.9% |
|     Mastercard, Class A                                   | 8,914                   | 806,925 | 911,011 | 2.6% |
|                                                                | 1,777,439               | 1,896,655 | 5.5% |
|                                                                |
|  Diversified Banks                                             |
|     JP Morgan Chase                                       | 14,016                  | 846,624 | 1,123,663 | 3.2% |
|                                                                |
|                                                                | 2,624,063               | 3,020,318 | 8.7% |
|                                                                |
| Health Care                                                         |                    |
|                                                                |
|  Biotech                                                       |
|     Amgen                                                 | 5,267                   | 555,197 | 758,817 | 2.2% |
|     Celgene1                                         | 9,000                   | 919,669 | 1,066,590 | 3.1% |
|                                                                | 1,474,866               | 1,825,407 | 5.3% |
|                                                                |
|  Large Pharma                                                  |
|     Bristol-Myers Squibb                                  | 11,000                  | 840,844 | 620,840 | 1.8% |
|                                                                |
|  Life Science Equipment                                        |
|     Abbott Laboratories                                   | 20,799                  | 646,854 | 791,818 | 2.3% |
|                                                                |
|  Medical Devices                                               |
|     Edwards Lifesciences1                            | 9,200                   | 916,726 | 762,220 | 2.2% |
|                                                                |
|                                                                | 3,879,290               | 4,000,285 | 11.6% |
|                                                                |
| Industrials                                                         |                    |
|                                                                |
|  Building Sub Contractors                                      |
|     EMCOR                                                 | 11,693                  | 456,380 | 811,143 | 2.3% |
|                                                                |
|  Commercial & Residential Building Equipment & Systems |
|     Johnson Controls International                        | 16,714                  | 750,557 | 751,796 | 2.2% |
|                                                                |
|                                                                | 1,206,937               | 1,562,939 | 4.5% |
|                                                                |
| Continued on next page.                                             |

 

| 40 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

## Sextant Growth Fund

| Schedule of Investments              | As of November 30, 2016 |
|--------------------------------------|-------------------------|
| Common Stock — 94.6%           | Number of Shares        | Cost | Market Value | Percentage of Assets |
|                                 |
| Materials                            |                    |
|                                 |
|  Specialty Chemicals            |
|     Ashland                | 3,037                   | $290,318 | $342,270 | 1.0% |
|     RPM International      | 23,400                  | 967,927 | 1,238,094 | 3.6% |
|                                 |
|                                 | 1,258,245               | 1,580,364 | 4.6% |
|                                 |
| Technology                           |                    |
|                                 |
|  Application Software           |
|     Adobe Systems1    | 11,000                  | 144,216 | 1,130,910 | 3.3% |
|                                 |
|  Communications Equipment       |
|     Apple                  | 17,220                  | 20,298 | 1,903,154 | 5.5% |
|                                 |
|  Infrastructure Software        |
|     Microsoft              | 18,920                  | 872,435 | 1,140,119 | 3.3% |
|                                 |
|                                 | 1,036,949               | 4,174,183 | 12.1% |
|                                 |
| Total investments                    | $23,662,077             | 32,739,634 | 94.7% |
| Other assets (net of liabilities)    |                    | 1,821,502 | 5.3% |
| Total net assets                     |                    | $34,561,136 | 100.0% |
| 1 Non-income producing security |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 41 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant Growth Fund

| Statement of Assets and Liabilities                                                |
|------------------------------------------------------------------------------------|
| As of November 30, 2016                                                            |
|                                                                               |
| Assets                                                                             |
|     Investments in securities, at value     (Cost $23,662,077) | $32,739,634 |
|     Cash                                                                 | 1,894,843 |
|     Dividends receivable                                                 | 39,617 |
|     Receivable for Fund shares sold                                      | 9,130 |
|    Prepaid filing and registration fees                                  | 2,347 |
|     Insurance reserve premium                                            | 1,214 |
|     Reimbursement due from adviser                                       | 56 |
|         Total assets                                           | 34,686,841 |
| Liabilities                                                                        |
|     Accrued audit expenses                                               | 38,239 |
|     Payable for Fund shares redeemed                                     | 31,419 |
|     Distributions payable                                                | 27,655 |
|     Payable advisory fees                                                | 14,143 |
|     Payable to affiliates                                                | 9,064 |
|     Accrued distribution fees                                            | 1,902 |
|     Accrued trustee expenses                                             | 1,688 |
|     Accrued other expenses                                               | 1,595 |
|         Total liabilities                                      | 125,705 |
| Net assets                                                                         | $34,561,136 |
|                                                                               |
| Analysis of net assets                                                             |
|     Paid-in capital (unlimited shares authorized, without par value)     | $25,329,895 |
|     Undistributed net investment income                                  | 153,684 |
|     Unrealized net appreciation on investments                           | 9,077,557 |
| Net assets applicable to Fund shares outstanding                                   | $34,561,136 |
|                                                                               |
| Fund shares outstanding                                                            | 1,534,497 |
|                                                                               |
| Net asset value, offering, and redemption price per share                          | $22.52 |

 

| Statement of Operations                                |
|--------------------------------------------------------|
| Year ended November 30, 2016                           |
|                                                   |
| Investment income                                      |
|     Dividend income                          | $455,846 |
|     Miscellaneous income                     | 248 |
|         Total investment income    | $456,094 |
| Expenses                                               |
|     Distribution fees                        | 99,471 |
|     Investment adviser fees                  | 93,790 |
|     Audit fees                               | 38,239 |
|     Filing and registration fees             | 18,780 |
|     Chief Compliance Officer expenses        | 13,060 |
|     Trustee fees                             | 11,637 |
|     Retirement plan custodial fees           | 9,049 |
|     Printing and postage                     | 8,077 |
|     Other expenses                           | 7,441 |
|     Custodian fees                           | 1,881 |
|     Legal fees                               | 1,145 |
|         Total gross expenses       | 302,570 |
|     Less custodian fee credits               | (1,881) |
|         Net expenses               | 300,689 |
| Net investment income                                  | $155,405 |
|                                                   |
|                                                   |
| Net realized gain from investments                     | $1,067,126 |
| Net decrease in unrealized appreciation on investments | (3,333,190) |
| Net loss on investments                                | $(2,266,064) |
|                                                   |
| Net decrease in net assets resulting from operations   | $(2,110,659) |

 

| 42 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

### Sextant Growth Fund

| Statements of Changes in Net Assets                                | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|--------------------------------------------------------------------|--------------------------|--------------------------|
| Increase (decrease) in net assets from operations                  |
| From operations                                                    |
|     Net investment income                                | $155,405                 | $75,927                  |
|     Net realized gain on investments                     | 1,067,126                | 4,478,668                |
|     Net decrease in unrealized appreciation              | (3,333,190)              | (5,218,051)              |
|         Net decrease in net assets             | (2,110,659)              | (663,456)                |
| Distributions to shareowners from                                  |
|     Net investment income                                | (29,765)                 | (76,776)                 |
|     Capital gains                                        | (1,067,190)              | (4,478,604)              |
|         Total distributions                    | (1,096,955)              | (4,555,380)              |
| Capital share transactions                                         |
|     Proceeds from sales of shares                        | 2,619,460                | 29,831,228               |
|     Value of shares issued in reinvestment of dividends  | 1,069,300                | 4,491,982                |
|     Cost of shares redeemed                              | (21,787,148)             | (19,100,240)             |
|         Net increase (decrease) in net assets  | (18,098,388)             | 15,222,970               |
| Total increase (decrease) in net assets                            | (21,306,002)             | 10,004,134               |
|                                                               |
| Net assets                                                         |
| Beginning of year                                                  | 55,867,138               | 45,863,004               |
| End of year                                                        | 34,561,136               | 55,867,138               |
|                                                               |
| Undistributed net investment income                                | $153,684                 | $28,044                  |
|                                                               |
| Shares of the Fund sold and redeemed                               |
|     Number of shares sold                                | 116,377                  | 1,128,605                |
|     Number of shares issued in reinvestment of dividends | 47,482                   | 186,932                  |
|     Number of shares redeemed                            | (954,160)                | (730,832)                |
| Net increase (decrease) in number of shares outstanding            | (790,301)                | 584,705                  |

 

| Financial Highlights                                                             | For year ended November 30, |
|----------------------------------------------------------------------------------|-----------------------------|
| Selected data per share of outstanding capital stock throughout each year:       | 2016                        | 2015 | 2014 | 2013 | 2012 |
| Net asset value at beginning of year                                             | $24.03                      | $26.36 | $23.92 | $20.35 | $18.14 |
| Income from investment operations                                                |
|     Net investment income                                              | 0.11                        | 0.03 | 0.02 | 0.12 | 0.08 |
|     Net gains (losses) on securities (both realized and unrealized)    | (0.88)                      | (0.25) | 3.88 | 5.86 | 2.21 |
| Total from investment operations                                                 | (0.77)                      | (0.22) | 3.90 | 5.98 | 2.29 |
| Less distributions                                                               |
|     Dividends (from net investment income)                             | (0.02)                      | (0.04) | (0.01) | (0.13) | (0.08) |
|     Distributions (from capital gains)                                 | (0.72)                      | (2.07) | (1.45) | (2.28) | - |
| Total distributions                                                              | (0.74)                      | (2.11) | (1.46) | (2.41) | (0.08) |
|     Paid-in capital from early redemption fees                         | n/a                         | n/a | n/a | - | 0.001 |
|                                                                             |
| Net asset value at end of year                                                   | $22.52                      | $24.03 | $26.36 | $23.92 | $20.35 |
|                                                                             |
| Total return                                                                     | (3.22%)                     | (0.87%) | 16.29% | 29.39% | 12.64% |
|                                                                             |
| Ratios / supplemental data                                                       |
| Net assets ($000), end of year                                                   | $34,561                     | $55,867 | $45,863 | $36,574 | $25,250 |
| Ratio of expenses to average net assets                                          |
|     Before custodian fee credits                                       | 0.76%                       | 0.90% | 1.05% | 0.94% | 1.10% |
|     After custodian fee credits                                        | 0.76%                       | 0.90% | 1.05% | 0.94% | 1.10% |
| Ratio of net investment income after custodian fee credits to average net assets | 0.39%                       | 0.13% | 0.07% | 0.59% | 0.42% |
| Portfolio turnover rate                                                          | 25%                         | 68% | 23% | 29% | 10% |
| 1 Amount is less than $0.01                                                 |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 43 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant International Fund 

***Performance Summary** (unaudited)*

| Average Annual Total Returns as of November 30, 2016 |
|------------------------------------------------------|
|                                                 | 1 Year | 5 Year | 10 Year | Expense Ratio1 |
| Sextant International Fund                           | 0.49% | 1.79% | 2.03% | 1.05% |
| MSCI EAFE Index                                      | -3.17% | 6.09% | 1.19% | n/a |

Growth of $10,000

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged, 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2006, to an identical amount invested in the  MSCI EAFE Index, an international index focused on Europe, Australasia, and the Far East. The graph shows that an investment in the Fund would have risen to $12,221 versus $11,258  in the Index. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.

1  By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods. |

Fund Objective

The objective of the International Fund is long-term capital growth.

| Top Ten Holdings                  |                  | Portfolio Diversification   |
|-----------------------------------|-----------------------|-----------------------------|
| % of Total Net Assets             | % of Total Net Assets |                        |
| ASML                              | 7.0%                  | Application Software        | 12.4% | █ |  |
| NICE Systems ADS                  | 6.3%                  | Banks                       | 8.8% | █ |
| Dassault Systemes ADR             | 6.1%                  | Large Pharma                | 7.1% | █ |
| Toronto-Dominion Bank             | 6.1%                  | Semiconductor Manufacturing | 7.0% | █ |
| Belmond, Class A                  | 6.0%                  | Telecom Carriers            | 7.0% | █ |
| Wolters Kluwer                    | 5.8%                  | Lodging                     | 6.0% | █ |
| BASF ADR                          | 5.5%                  | Information Services        | 5.8% | █ |
| Unilever ADS                      | 4.8%                  | Specialty Chemicals         | 5.5% | █ |
| Novartis ADR                      | 4.4%                  | Integrated Oils             | 5.1% | █ |
| Copa Holdings, Class A            | 4.3%                  | Household Products          | 4.8% | █ |
|                              | Airlines              | 4.3%                        | █ |
| Automobiles                       | 3.8%                  | █                     |
| Beverages                         | 3.7%                  | █                     |
| Specialty Pharma                  | 2.8%                  | █                     |
| E-Commerce Discretionary          | 2.5%                  | █                     |
| Industries < 2%                | 9.7%                  | █                     |
| Other assets (net of liabilities) | 3.7%                  | █                     |

 

| 44 | May 31, 2016 | Semi-Annual Report |
|----|--------------|--------------------|

----

### Sextant International Fund

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

(photo omitted)

**Fiscal Year 2016**

For the fiscal year ended November 30, 2016, the Sextant International Fund returned 0.49%, while the Fund's benchmark, the MSCI EAFE Index, returned -3.17%.

The Fund's annual expense ratio decreased to 1.00% from 1.04% because of the fulcrum element of the management fee. The Fund paid a year-end income dividend of 5¢ per share. Total Fund assets decreased by –20.5% in fiscal 2016. We continued our low portfolio turnover policy to reduce payment of capital gains distributions subject to income taxation.

**Factors Affecting Past Performance**

While international investing, as represented by the MSCI EAFE Index, continued its unrewarding streak in 2016, the Sextant International Fund provided relatively good returns for a dollar-based investor that does not invest in US markets. That was achieved through a combination of avoiding most major pitfalls, while also enjoying strong performance from several of our European and Latin American investments.

One pitfall we avoided was the European banking sector. We weren't completely unscathed as Spain's Banco Santander continued its multiyear decline, but it has been sold from the portfolio. On the other hand, our Canadian and Australian bank investments both did well. There has been some concern that Toronto-Dominion Bank and Australia & New Zealand Bank could be at risk from the frothy residential property markets in both countries, but they are well-managed institutions operating in rigorous regulatory environments with limits to housing risk-taking. At the same time, both currencies have stabilized against the US dollar.

The pitfall we failed to avoid was Health Care, which in 2016 underperformed around the world. We believe the macro factors benefiting Health Care are intact, although we are examining the sales growth potential of several long-term holdings.

In terms of active contributions to returns, Technology led the way after a difficult 2015. We did not add any new positions during the year but had confidence that our theses for existing holdings were intact and would be recognized. Dutch lithography leader ASML had been held back as the evolution to the newest lithography technology (Extreme Ultra Violet) was a difficult transition. Our checks indicated that the transition, while slower than initial expectations, was progressing. Latin American e-commerce leader MercadoLibre rebounded after economic and political tumult in Brazil and Argentina challenged the business over the previous two years. Meanwhile, software developer NICE Systems continued the strong performance it has enjoyed for several years running.

Industrials also provided a solid return, primarily supported by our investment in Panamanian airline Copa, which rebounded sharply during the year. Electric motor company Nidec and Dutch conglomerate Philips also contributed.

From a regional perspective, we are underrepresented in Japan and Australia, both of which performed well during the year. Any lost opportunity, however, was more than made up by our European investments, as well as the aforementioned Latin American stocks. UK-listed leisure company Belmond rebounded strongly, while chemicals giant BASF drove our German returns, and Wolters Kluwer, along with previously discussed ASML, made the Netherlands our most profitable market.

**Looking Forward**

While the United States appears on its way to exiting the drawn-out period of extraordinary monetary policy, European and Japanese central banks remain committed to slaying the deflationary dragon and continue to be aggressive in their money-creation activities. Europe appears to be having some success, but Japan less so. Regardless, both will benefit from the weakening of their currencies relative to the US dollar, and there are worse fates than being an exporter in either region.

While demographics are the bane of Japanese economic activity, politics represent the far greater threat in Europe. Except for the value of the British pound, the UK economy has held up better than expected since the Brexit vote but, then again, it has yet to leave the European Union. Across the continent, parties that are anti-the common currency, anti-EU, anti-immigration, and surprisingly pro-Putin are gaining popularity. Major elections will be held in Germany, France, and possibly Italy. How those elections turn out will have significant long-term consequences for the continent and could even upend the post-war order.

**Management Fee Calculations**

The Sextant International Fund calculates the performance part of its management fee by comparing the Fund's return to the average return of Morningstar'sTM "Foreign Large Blend" category. The Fund's 12-month return (0.49%) was more than two percent above the MorningstarTM category average (-3.31%) at month-end November 30, 2016. Therefore, the basic annual management fee of 0.50% was increased by the maximum 0.20% to 0.70% for the month of December 2016.

 

| Annual Report | November 30, 2016 | 45 |
|---------------|-------------------|----|

## Sextant International Fund

| Schedule of Investments                                     | As of November 30, 2016 |
|-------------------------------------------------------------|-------------------------|
| Common Stocks — 96.3%                                 | Number of Shares        | Cost | Market Value | Country1 | Percentage of Assets |
|                                                        |
| Communications                                              |                    |
|                                                        |
|  Telecom Carriers                                      |
|     BCE                                           | 50,000                  | $1,164,294 | $2,154,000 | Canada | 3.5% |
|     SK Telecom ADR                                | 30,000                  | 511,437 | 636,000 | South Korea | 1.0% |
|     Telus                                         | 50,000                  | 710,475 | 1,561,500 | Canada | 2.5% |
|                                                        |
|                                                        | 2,386,206               | 4,351,500 |   | 7.0% |
|                                                        |
| Consumer Discretionary                                      |                    |
|                                                        |
|  Airlines                                              |
|     Copa Holdings, Class A                        | 30,000                  | 1,766,222 | 2,666,100 | Panama | 4.3% |
|                                                        |
|  Automobiles                                           |
|     Toyota Motor ADS                              | 20,000                  | 1,496,296 | 2,370,600 | Japan | 3.8% |
|                                                        |
|  E-Commerce Discretionary                              |
|     MercadoLibre                                  | 10,000                  | 829,340 | 1,578,200 | Argentina | 2.5% |
|                                                        |
|  Lodging                                               |
|     Belmond, Class A2                        | 288,500                 | 2,720,067 | 3,736,075 | Bermuda | 6.0% |
|                                                        |
|                                                        | 6,811,925               | 10,350,975 |   | 16.6% |
|                                                        |
| Consumer Staples                                            |                    |
|                                                        |
|  Beverages                                             |
|     Fomento Economico Mexico ADS                  | 30,000                  | 1,614,722 | 2,341,500 | Mexico | 3.7% |
|                                                        |
|  Food & Drug Stores                                |
|     Carrefour ADS                                 | 170,000                 | 761,908 | 796,450 | France | 1.3% |
|                                                        |
|  Household Products                                    |
|     Unilever ADS                                  | 75,000                  | 2,284,504 | 2,998,500 | United Kingdom | 4.8% |
|                                                        |
|                                                        | 4,661,134               | 6,136,450 |   | 9.8% |
|                                                        |
| Energy                                                      |                    |
|                                                        |
|  Integrated Oils                                       |
|     Statoil ADS                                   | 60,000                  | 1,551,895 | 1,044,000 | Norway | 1.7% |
|     Total ADS                                     | 45,000                  | 2,528,346 | 2,144,700 | France | 3.4% |
|                                                        |
|                                                        | 4,080,241               | 3,188,700 |   | 5.1% |
|                                                        |
| Financials                                                  |                    |
|                                                        |
|  Banks                                                 |
|     Australia & New Zealand Banking Group ADS | 80,000                  | 1,581,456 | 1,685,600 | Australia | 2.7% |
|     Toronto-Dominion Bank                         | 80,000                  | 2,302,163 | 3,791,200 | Canada | 6.1% |
|                                                        | 3,883,619               | 5,476,800 |   | 8.8% |
|  Diversified Banks                                     |
|    Mitsubishi UFJ Financial Group ADR             | 200,000                 | 960,000 | 1,200,000 | Japan | 1.9% |
|                                                        |
|                                                        | 4,843,619               | 6,676,800 |   | 10.7% |
|                                                        |
| Continued on next page.                                     |

 

| 46 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

## Sextant International Fund

| Schedule of Investments                   | As of November 30, 2016 |
|-------------------------------------------|-------------------------|
| Common Stocks — 96.3%               | Number of Shares        | Cost | Market Value | Country1 | Percentage of Assets |
|                                      |
| Health Care                               |                    |
|                                      |
|  Health Care Supply Chain            |
|     Sinopharm Group             | 250,000                 | 798,792 | $1,165,515 | China | 1.8% |
|                                      |
|  Large Pharma                        |
|     Novartis ADR                | 40,000                  | 1,987,297 | 2,750,400 | Switzerland | 4.4% |
|     Novo Nordisk ADS            | 50,000                  | 612,798 | 1,680,000 | Denmark | 2.7% |
|                                      | 2,600,095               | 4,430,400 |   | 7.1% |
|                                      |
|  Medical Equipment                   |
|     Koninklijke Philips         | 21,368                  | 794,921 | 611,338 | Netherlands | 1.0% |
|                                      |
|  Specialty Pharma                    |
|     Shire ADS                   | 10,000                  | 359,660 | 1,746,000 | Ireland | 2.8% |
|                                      |
|                                      | 4,553,468               | 7,953,253 |   | 12.7% |
|                                      |
| Materials                                 |                    |
|                                      |
|  Agricultural Chemicals              |
|     Potash Corp of Saskatchewan | 39,000                  | 914,639 | 710,970 | Canada | 1.1% |
|                                      |
|  Specialty Chemicals                 |
|     BASF ADR                    | 40,000                  | 2,888,666 | 3,427,600 | Germany | 5.5% |
|                                      |
|                                      | 3,803,305               | 4,138,570 |   | 6.6% |
|                                      |
| Technology                                |                    |
|                                      |
|  Application Software                |
|     Dassault Systemes ADR       | 50,000                  | 1,727,827 | 3,802,500 | France | 6.1% |
|     NICE Systems ADS            | 60,000                  | 2,122,719 | 3,947,400 | Israel | 6.3% |
|                                      | 3,850,546               | 7,749,900 |   | 12.4% |
|                                      |
|  Electronics Components              |
|     Nidec ADS                   | 53,406                  | 514,164 | 1,210,714 | Japan | 1.9% |
|                                      |
|  Information Services                |
|     Wolters Kluwer              | 100,000                 | 1,869,506 | 3,603,804 | Netherlands | 5.8% |
|                                      |
|  Semiconductor Manufacturing         |
|     ASML                        | 42,350                  | 1,505,799 | 4,367,556 | Netherlands | 7.0% |
|                                      |
|                                      | 7,740,015               | 16,931,974 |   | 27.1% |
|                                      |
| Continued on next page.                   |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 47 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

## Sextant International Fund

| Schedule of Investments                                                                                                                                                              | As of November 30, 2016 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| Common Stocks — 96.3%                                                                                                                                                          | Number of Shares        | Cost | Market Value | Country1 | Percentage of Assets |
|                                                                                                                                                                                 |
| Utilities                                                                                                                                                                            |                    |
|                                                                                                                                                                                 |
|  Utility Networks                                                                                                                                                               |
|     Korea Electric Power ADS                                                                                                                                               | 20,000                  | $304,261 | $395,800 | South Korea | 0.7% |
|                                                                                                                                                                                 |
|                                                                                                                                                                                 | 304,261                 | 395,800 |   | 0.7% |
|                                                                                                                                                                                 |
| Total investments                                                                                                                                                                    |                    | $39,184,174 | 60,124,022 |   | 96.3% |
| Other assets (net of liabilities)                                                                                                                                                    |                    | 2,288,080 |   | 3.7% |
| Total net assets                                                                                                                                                                     |                    | $62,412,102 |   | 100.0% |
| 1 Country of domicile2 Non-income producing security3 Denotes a country or region of primary exposure

ADS: American Depositary ShareADR: American Depositary Receipt |

 

| Countries                                                                                      | *(unaudited)* |
|------------------------------------------------------------------------------------------------|---------------|
|                                                                                           |
| Other assets (net of liabilities) 3.7%

Weightings shown are a percentage of total net assets. |

 

| 48 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

## Sextant International Fund

| Statement of Assets and Liabilities                                                |
|------------------------------------------------------------------------------------|
| As of November 30, 2016                                                            |
|                                                                               |
| Assets                                                                             |
|     Investments in securities, at value     (Cost $39,184,174) | $60,124,022 |
|     Cash                                                                 | 1,908,487 |
|     Dividends receivable                                                 | 522,454 |
|     Receivable for Fund shares sold                                      | 8,013 |
|     Receivable miscellaneous                                             | 15 |
|         Total assets                                           | 62,562,991 |
| Liabilities                                                                        |
|     Accrued audit expenses                                               | 55,000 |
|     Payable for Fund shares redeemed                                     | 27,256 |
|     Payable advisory fees                                                | 25,927 |
|     Accrued trustee expenses                                             | 14,494 |
|     Accrued other expenses                                               | 12,577 |
|     Payable to affiliates                                                | 8,245 |
|     Distributions payable                                                | 3,971 |
|     Accrued distribution fees                                            | 3,419 |
|         Total liabilities                                      | 150,889 |
| Net assets                                                                         | $62,412,102 |
|                                                                               |
| Analysis of net assets                                                             |
|     Paid-in capital (unlimited shares authorized, without par value)     | $40,740,134 |
|     Undistributed net investment gain                                    | 868,348 |
|     Accumulated net realized loss                                        | (135,940) |
|     Unrealized net appreciation on investments                           | 20,939,560 |
| Net assets applicable to Fund shares outstanding                                   | $62,412,102 |
|                                                                               |
| Fund shares outstanding                                                            | 4,344,372 |
|                                                                               |
| Net asset value, offering, and redemption price per share                          | $14.37 |

 

| Statement of Operations                                     |
|-------------------------------------------------------------|
| Year ended November 30, 2016                                |
|                                                        |
| Investment income                                           |
|     Dividend income (net foreign tax of $257,745) | $1,617,190 |
|     Miscellaneous income                          | 54 |
|         Total investment income         | 1,617,244 |
| Expenses                                                    |
|     Investment adviser fees                       | 359,812 |
|     Distribution fees                             | 171,597 |
|     Audit fees                                    | 59,000 |
|     Chief Compliance Officer expenses             | 21,345 |
|     Filing and registration fees                  | 19,061 |
|     Trustee fees                                  | 17,753 |
|     Printing and postage                          | 15,118 |
|     Other expenses                                | 11,059 |
|     Retirement plan custodial fees                | 6,733 |
|     Custodian fees                                | 4,668 |
|     Legal fees                                    | 2,074 |
|         Total gross expenses            | 688,220 |
|     Less custodian fee credits                    | (4,668) |
|         Net expenses                    | 683,552 |
| Net investment income                                       | $933,692 |
|                                                        |
|                                                        |
| Net realized gain from investments and foreign currency     | $1,711,395 |
| Net decrease in unrealized appreciation on investments      | (2,649,048) |
| Net loss on investments                                     | $(937,653) |
|                                                        |
| Net decrease in net assets resulting from operations        | $(3,961) |

 

| The accompanying notes are an integral part of these financial statements. | Annual Report | November 30, 2016 | 49 |
|----------------------------------------------------------------------------|---------------|-------------------|----|

----

### Sextant International Fund

| Statements of Changes in Net Assets                                | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|--------------------------------------------------------------------|--------------------------|--------------------------|
| Increase (decrease) in net assets from operations                  |
| From operations                                                    |
|     Net investment income                                | $933,692                 | $1,363,362               |
|     Net realized gain (loss) on investments              | 1,711,395                | (355,981)                |
|     Net decrease in unrealized appreciation              | (2,649,048)              | (5,976,716)              |
|         Net decrease in net assets             | (3,961)                  | (4,969,335)              |
| Distributions to shareowners from                                  |
|     Net investment income                                | (216,548)                | (1,345,099)              |
|     Return of capital                                    | -                        | (31,767)                 |
|         Total distributions                    | (216,548)                | (1,376,866)              |
| Capital share transactions                                         |
|     Proceeds from sales of shares                        | 5,375,482                | 7,651,821                |
|     Value of shares issued in reinvestment of dividends  | 212,577                  | 1,357,046                |
|     Cost of shares redeemed                              | (21,250,952)             | (27,817,215)             |
|         Net decrease in net assets             | (15,662,893)             | (18,808,348)             |
| Total decrease in net assets                                       | (15,883,402)             | (25,154,549)             |
|                                                               |
| Net assets                                                         |
| Beginning of year                                                  | 78,295,504               | 103,450,053              |
| End of year                                                        | 62,412,102               | 78,295,504               |
|                                                               |
| Undistributed net investment income                                | $868,348                 | $-                       |
|                                                               |
| Shares of the Fund sold and redeemed                               |
|     Number of shares sold                                | 382,299                  | 497,102                  |
|     Number of shares issued in reinvestment of dividends | 14,793                   | 94,568                   |
|     Number of shares redeemed                            | (1,507,490)              | (1,822,951)              |
| Net decrease in number of shares outstanding                       | (1,110,398)              | (1,231,281)              |

 

| Financial Highlights                                                             | For year ended November 30, |
|----------------------------------------------------------------------------------|-----------------------------|
| Selected data per share of outstanding capital stock throughout eachyear:        | 2016                        | 2015 | 2014 | 2013 | 2012 |
| Net asset value at beginning of year                                             | $14.35                      | $15.47 | $15.80 | $14.85 | $14.41 |
| Income from investment operations                                                |
|     Net investment income                                              | 0.22                        | 0.25 | 0.65 | 0.32 | 0.14 |
|     Net gains (losses) on securities (both realized and unrealized)    | (0.15)                      | (1.11) | (0.35) | 0.97 | 0.44 |
| Total from investment operations                                                 | 0.07                        | (0.86) | 0.30 | 1.29 | 0.58 |
| Less distributions                                                               |
|     Dividends (from net investment income)                             | (0.05)                      | (0.25) | (0.63) | (0.34) | (0.14) |
|     Distributions (from return of capital)                             | -                           | (0.01) | - | - | - |
| Total distributions                                                              | (0.05)                      | (0.26) | (0.63) | (0.34) | (0.14) |
|     Paid-in capital from early redemption fees                         | n/a                         | n/a | n/a | 0.001 | 0.001 |
|                                                                             |
| Net asset value at end of year                                                   | $14.37                      | $14.35 | $15.47 | $15.80 | $14.85 |
|                                                                             |
| Total return                                                                     | **0.49%**                   | **(5.58)%** | **1.88%** | **8.67%** | **4.05%** |
|                                                                             |
| Ratios / supplemental data                                                       |
| Net assets ($000), end of year                                                   | $62,412                     | $78,296 | $103,450 | $148,016 | $183,732 |
| Ratio of expenses to average net assets                                          |
|     Before custodian fee credits                                       | 1.00%                       | 1.05% | 0.80% | 0.66% | 1.10% |
|     After custodian fee credits                                        | 1.00%                       | 1.04% | 0.79% | 0.66% | 1.10% |
| Ratio of net investment income after custodian fee credits to average net assets | 1.36%                       | 1.49% | 3.58% | 1.69% | 0.98% |
| Portfolio turnover rate                                                          | 0%                          | 0% | 3% | 7% | 10% |
| 1 Amount is less than $0.01                                                 |

 

| 50 | November 30, 2016 | Annual Report | The accompanying notes are an integral part of these financial statements. |
|----|-------------------|---------------|----------------------------------------------------------------------------|

----

## 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 an open-end, diversified management company under the Investment Company Act of 1940, as amended. Nine portfolio series have been created to date: Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund (each, a "Fund", and collectively, the "Funds"), Idaho Tax-Exempt Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund. Idaho Tax-Exempt Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund are offered through separate prospectuses, the results of which are contained in separate reports.

Sextant Growth (previously known as Idaho Limited Maturity Tax-Exempt Fund until October 12, 1990, then Northwest Growth Fund until September 28, 1995, when the investment objective of only Northwest stocks was changed) commenced operations as an equity fund on December 30, 1990. Sextant International and Sextant Short-Term Bond began operations September 28, 1995. Sextant Bond Income Fund (previously known as Washington Tax-Exempt Fund until September 28, 1995, when the investment objective of only Washington State Municipal Bonds was changed) began operations on March 1, 1993. Sextant Core Fund commenced operations March 30, 2007. Sextant Global High Income Fund commenced operations March 30, 2012.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946  "Financial Services — Investment Companies".

**Investment risks:****Growth, International, Core, Short-Term Bond, Bond Income,** and **Global High Income Funds:** The value of each Fund's shares rises and falls as the value of the securities in which the Fund invests goes up and down. Fund share prices, yields, and total returns will change with market fluctuations as well as the fortunes of the countries, industries, and companies in which the Fund invests. The Funds do not use derivatives to hedge currency, interest rate, or credit risk.

Liquidity risk exists when particular investments are difficult to sell. If a Fund holds illiquid investments, its portfolio may be more difficult to value, especially in changing markets. Investments by a Fund in foreign securities and those that are thinly traded, such as lower quality issuers and smaller companies, tend to involve greater liquidity risk. If a Fund is forced to sell or unwind these investments to meet redemptions or for other cash needs, the Fund may suffer a penalty. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. In such cases, the Fund, due to limitations on investments in illiquid securities and the difficulty in purchasing and selling such securities, may be unable to achieve its investment objective.

**Growth** and **Core Funds:** Smaller companies involve higher investment risks in that they often have limited product lines, markets and resources, or their securities may trade less frequently and have greater price fluctuation than those of larger companies.

Growth stocks, which can be priced on future expectations rather than current results, may decline substantially when expectations are not met.

**International, Core, Short-Term Bond, Bond Income,** and **Global High Income Funds:** Foreign investing involves risks not normally associated with investing in US securities. These include fluctuations in currency exchange rates, less public information about securities, less governmental market supervision, and the lack of uniform financial, social, and political standards. Foreign investing heightens the risk of confiscatory taxation, seizure or nationalization of assets, currency controls, or adverse political or social developments that affect investments. The risks of investing in foreign securities are typically greater in less developed or emerging countries.

**Core Fund:** The Core Fund has the risks of growth stocks, foreign securities, credit, and interest rates — but these risks are mitigated by spreading its investments in both stocks and bonds, and by favoring income-producing securities and those of larger, more seasoned companies.

**Short-Term Bond, Bond Income, Global High Income,** and **Core Funds:** Bonds entail credit risk, which is the possibility that a bond will not be able to pay interest or principal when due. If the credit quality of a bond is perceived to decline, investors will demand a higher yield, which means a lower price on that bond to compensate for the higher level of risk.

Interest rate fluctuations affect bond prices and a Fund's net asset value, but not the income received by the Fund from its portfolio securities. Because prices and yields on debt securities vary over time, a Fund's yield also varies. Bonds with embedded callable options also contain an element of prepayment risk. When interest rates decline, issuers can retire their debt and reissue bonds at a lower interest rate. This hurts investors because yields available for reinvestment will have declined and upward price mobility on callable bonds is generally limited by the call price.

**Global High Income Fund:** Issuers of high-yield securities are generally not as strong financially as those issuing higher quality securities. These issuers are more likely to encounter financial difficulties and are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest, principal, and dividend payments as expected. The prices of high-yield securities generally fluctuate more than those of higher quality. High-yield securities are generally more illiquid (harder to sell) and harder to value.

The Funds may invest substantially in one or more sectors, which can increase volatility and exposure to issues specific to a particular sector or industry.

### NOTE 2 — Significant Accounting Policies

The following is a summary of the significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Funds in preparation of their financial statements.

**Security valuation:**Investments in securities traded on a national securities exchange and over-the-counter securities for which sale prices are available are valued at that price. Securities for which there are no sales are valued at the latest bid price.

Debt securities are valued using bid-side valuations provided by an independent service. The service determines valuations using factors such as yields or prices of bonds of comparable quality, type of issue, coupon maturity, ratings, trading activity, and general market conditions.

Fixed-income debt instruments, such as commercial paper, bankers' acceptances and US Treasury Bills, with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Any discount or premium is accreted or amortized on a straight-line basis until maturity.

Foreign markets may close before the time as of which the Funds' share prices are determined. Because of this, events occurring after the close and before the determination of the Funds' share prices may have a material effect on the values of some or all of the Funds' foreign securities. To account for this, the Funds may use outside pricing services for valuation of their non-US securities.

| Annual Report | November 30, 2016 | 51 |
|---------------|-------------------|----|

----

## Notes To Financial Statements (continued)

||
||
| Short-Term Bond |
| Corporate Bonds1 | $- | $8,564,448 | $- | $8,564,448 |
| Government Bonds1 | $- | $1,249,383 | $- | $1,249,383 |
| Total | $- | $9,813,831 | $- | $9,813,831 |
|   |
| Bond Income |
| Corporate Bonds1 | $- | $5,863,669 | $- | $5,863,669 |
| Government Bonds1 | $- | $1,294,324 | $- | $1,294,324 |
| Municipal Bonds1 | $- | $1,928,309 | $- | $1,928,309 |
| Total | $- | $9,086,302 | $- | $9,086,302 |
|   |
| Core |
| Common Stocks |
|     Communications | $247,127 | $- | $- | $247,127 |
|     Consumer Discretionary | 332,100 | - | - | 332,100 |
|     Consumer Staples | 641,945 | - | - | 641,945 |
|     Energy | 308,285 | - | - | 308,285 |
|     Financials | 615,045 | 149,245 | - | 764,290 |
|     Health Care | 555,738 | - | - | 555,738 |
|     Industrials | 375,788 | - | - | 375,788 |
|     Materials | 436,841 | - | - | 436,841 |
|     Technology | 936,836 | - | - | 936,836 |
|     Utilities | 142,788 | - | - | 142,788 |
| Total Common Stocks | $4,592,493 | $149,245 | $- | $4,741,738 |
| Corporate Bonds1 | $- | $2,215,180 | $- | $2,215,180 |
| Government Bonds1 | $- | $642,607 | $- | $642,607 |
| Municipal Bonds1 | $- | $559,183 | $- | $559,183 |
| Total | $4,592,493 | $3,566,215 | $- | $8,158,708 |
|   |
| Global High Income |
| Common Stocks |
|     Communications | $274,240 | $- | $- | $274,240 |
|     Energy | 850,652 | - | - | 850,652 |
|     Financials | 400,820 | 129,345 | - | 530,165 |
|     Health Care | 247,793 | - | - | 247,793 |
|     Industrials | - | 297,120 | - | 297,120 |
|     Materials | 562,505 | - | - | 562,505 |
|     Technology | 418,720 | - | - | 418,720 |
| Total Common Stocks | $2,754,730 | $426,465 | $- | $3,181,195 |
| Corporate Bonds1 | $- | $2,736,766 | $- | $2,736,766 |
| Government Bonds1 | $- | $703,593 | $- | $703,593 |
| Municipal Bonds1 | $- | $266,127 | $- | $266,127 |
| Total | $2,754,730 | $4,132,951 | $- | $6,887,681 |
|   |
| Growth |
| Common Stocks1 | $32,739,634 | $- | $- | $32,739,634 |
| Total | $32,739,634 | $- | $- | $32,739,634 |

 

| 52 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

----

## Notes To Financial Statements (continued)

|                                 |
|--------------------------------------|
| International                        |
| Common Stocks                        |
|     Communications         | $4,351,500 | $- | $- | $4,351,500 |
|     Consumer Discretionary | 10,350,975 | - | - | 10,350,975 |
|     Consumer Staples       | 6,136,450 | - | - | 6,136,450 |
|     Energy                 | 3,188,700 | - | - | 3,188,700 |
|     Financials             | 6,676,800 | - | - | 6,676,800 |
|     Health Care            | 6,787,738 | 1,165,515 | - | 7,953,253 |
|     Materials              | 4,138,570 | - | - | 4,138,570 |
|     Technology             | 13,328,170 | 3,603,804 | - | 16,931,974 |
|     Utilities              | 395,800 | - | - | 395,800 |
| Total                                | $55,354,703 | $4,769,319 | $- | $60,124,022 |

1 See Schedule of Investments for industry breakout.

During the period ended November 30, 2016, no Fund had transfers between Level 1 and Level 2. Sextant Global High Income Fund transferred securities from Level 3 to Level 2 due to the securities being priced using other observable inputs supported by an independent pricing service.

In cases in which there is not a readily available market price, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.

Security transactions are recorded on the trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.

**Foreign currency:**Investment securities and other assets and liabilities denominated in foreign currencies are translated into US dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into US dollar amounts on the respective dates of such transactions.

The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at the fiscal period end, resulting from changes in exchange rates.

**Share valuation:**The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds' shares are not priced or traded on days the New York Stock Exchange is closed. The NAV is the offering and redemption price per share.

**Fair value measurements:**Accounting Standards Codification (ASC) 820 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining  the value of the Funds' investments and are summarized below.

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

Level 2 — Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

| Global High Income Level 3 Roll-Forward Municipal Securities |
|--------------------------------------------------------------|
| Beginning balance                                            | $160,055 |
| Total unrealized losses                                      | 2,814 |
| Transfers in to and/or out of Level 3                        | (162,869) |
| Ending Balance                                               | $- |

*The Fund recognizes transfers of the end of the reporting period.*

| Annual Report | November 30, 2016 | 53 |
|---------------|-------------------|----|

----

## Notes To Financial Statements (continued)

**Investment concentration:**The Funds may have deposits of cash with the custodian from time to time for one or more reasons. "Other assets (net of liabilities)" in the Funds' Schedules of Investments primarily represents cash on deposit with the custodian. Cash on deposit will vary widely over time. Accounting Standards Codification ("ASC") 825, "Financial Instruments," identifies these items as a concentration of credit risk. The risk is managed by careful financial analysis and review of the custodian's operations, resources, and protections available to the Trust. This process includes evaluation of other financial institutions providing investment company custody services.

**Federal income taxes:**The Funds intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareowners sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision is required.

The Funds recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Funds' tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 — 2015) or expected to be taken in the Funds' 2016 tax returns. The Funds identify their major tax jurisdictions as US federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

**Reclassification of capital accounts:**Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. As of November 30, 2016, the reclassification of capital accounts were as follows:

|                                 | Short-Term Bond | Bond Income |
|--------------------------------------|-----------------|-------------|
| Undistributed net investment  income | $-              | $199        |
| Accumulated gains (losses)           | 3,883           | 12,723      |
| Paid-in capital                      | (3,883)         | (12,922)    |

 

|                                | Core   | Global High Income |
|-------------------------------------|--------|--------------------|
| Undistributed net investment income | $(595) | $(2,282)           |
| Accumulated gains (losses)          | 595    | 2,282              |
| Paid-in capital                     | -      | -                  |

 

|                                | Growth | International |
|-------------------------------------|--------|---------------|
| Undistributed net investment income | $-     | $151,204      |
| Accumulated gains (losses)          | -      | 32,300        |
| Paid-in capital                     | -      | (183,504)     |

These reclassifications were due to the treatment of foreign currencies expiring capital loss carryforwards.

**Distributions to shareowners:**For the Sextant Short-Term Bond Fund and Sextant Bond Income Fund, dividends to shareowners from net investment income are paid daily and distributed on the last business day of each month. For the Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, and Sextant International Fund, dividends to shareowners from net investment income are payable at the end of each November. Distributions of capital gains, if any, are made at least annually, and as required to comply with federal excise tax requirements. Distributions to shareowners are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take distributions if they total $10 or more in cash.

**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.

**Foreign taxes:**Withholding taxes on foreign dividends are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country's tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Funds record a reclaim receivable based on a number of factors, including a jurisdiction's legal obligation to pay reclaims as well as payment history and market convention.

**Other:**Interest income is recognized on an accrual basis. Premiums on securities purchased are amortized, and discounts are accreted over the lives of the respective securities. Dividends from equity securities are recorded as income on the ex-dividend date.

**Recent accounting pronouncement:**In May 2015, the FASB issued ASU No. 2015-07 "Disclosure for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)."  The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Management is currently evaluating the impact these changes will have on the Fund's financial statements and related disclosures.

| 54 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

----

## Notes To Financial Statements (continued)

### NOTE 3 — Transactions with Affiliated Persons

Under contracts approved annually by the Trust's independent trustees, Saturna Capital Corporation provides investment advisory services and certain other administrative services required to conduct Trust business. Expenses incurred by the Trust on behalf of the Funds (e.g., legal fees) are allocated to the Funds on the basis of relative daily average net assets. For such services, each of the Funds pays the adviser a base Investment Advisory and Administrative Services Fee of 0.50% of average net assets per annum, payable monthly for each of the Funds. In addition, the adviser has agreed to certain limits on other expenses, as described below.

The base Advisory Fee is subject to adjustment up or down depending on the investment performance of the Fund relative to a specified index.

- For each month in which the Fund's total investment return (change in net asset value plus all distributions reinvested) for the one year period through that month outperforms or underperforms the total return of a specified index for that period by 1% or more but less than 2%, the Base Fee is increased or decreased by the annual rate of .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%.

The Adviser has voluntarily undertaken to limit expenses of Sextant Global High Income and Sextant Bond Income Fund to 0.90%, and Sextant Short-Term Bond Fund to 0.75%, through March 31, 2017. It waives its investment advisory and administrative fee to Sextant Short-Term Bond Fund and Sextant Bond Income Fund completely should assets of such Fund be less than $2 million. For the year ended November 30, 2016, the advisory fees incurred were as follows:

|               | Adviser Fees | Adviser Fees Waived | Expense Reimbursement |
|--------------------|--------------|---------------------|-----------------------|
| Short-Term Bond    | $40,216      | $(31,468)           | $-                    |
| Bond Income        | 37,913       | (11,200)            | -                     |
| Core               | 37,248       | -                   | -                     |
| Global High Income | 32,813       | (18,635)            | -                     |
| Growth             | 93,790       | -                   | -                     |
| International      | $359,812     | $-                  | $-                    |

In accordance with the expense limitation noted above, for the year ended November 30, 2016, Saturna Capital waived a portion of the advisory fees of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund, and Sextant Global High Income Fund. The adviser cannot recoup previously waived fees.

Saturna Brokerage Services, Inc. ("SBS"), a discount brokerage and subsidiary of Saturna Capital Corporation, is registered as a broker-dealer and acts as distributor. On October 3, 2006, The Funds adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act. The plan provides that the Funds will pay a fee to SBS at an annual rate of .25% of the average net assets of the Funds. During the fiscal year ended November 30, 2016, the Trust paid SBS the following amounts:

| 12b-1 Fees         |
|--------------------|
| Short-Term Bond    | $20,108 |
| Bond Income        | 22,476 |
| Core               | 21,860 |
| Global High Income | 17,812 |
| Growth             | 99,471 |
| International      | $171,597 |

SBS is used to effect portfolio transactions for the Trust. SBS currently executes portfolio transactions without commission. Transactions effected through other brokers are subject to commissions payable to that broker.

Saturna Trust Company ("STC"), a subsidiary of Saturna Capital, acts as retirement plan custodian for Fund shareowners. Each Fund pays an annual fee of $10 per account for retirement plan services to Saturna Trust Company. For the year ended November 30, 2016, the Funds incurred the following amounts:

| Retirement plan custodial fees |
|--------------------------------|
| Short-Term Bond                | $3,680 |
| Bond Income                    | 2,733 |
| Core                           | 2,920 |
| Global High Income             | 1,110 |
| Growth                         | 9,049 |
| International                  | $6,733 |

Mr. Nicholas Kaiser serves as a trustee and president of the Trust. He is also a director and the chairman of Saturna Capital and Saturna Trust Company. Mr. Kaiser is not compensated by the Trust. For the year ended November 30, 2016, the Trust incurred compensation expenses of $29,000 which is included in $42,867 of total expenses for the independent Trustees. The Sextant Funds paid $24,780 of these total expenses.

The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who may be partially compensated by the Trust. For the year ended November 30, 2016, the Funds paid the following compensation expenses for the Chief Compliance Officer:

| Chief Compliance Officer |
|--------------------------|
| Short-Term Bond          | $2,236 |
| Bond Income              | 2,326 |
| Core                     | 2,353 |
| Global High Income       | 2,015 |
| Growth                   | 13,060 |
| International            | $21,345 |

On November 30, 2016, the trustees, officers, and their affiliates as a group owned 35.94%, 28.26%, 41.58%, 52.63%, 14.34% and 6.86% of the outstanding shares of Short-Term Bond, Bond Income, Core, Global High Income, Growth, and International Funds, respectively.

 

| Annual Report | November 30, 2016 | 55 |
|---------------|-------------------|----|

----

## Notes To Financial Statements (continued)

### NOTE 4 — Distributions to Shareowners

The tax characteristics of distributions paid during the fiscal years ended November 30, 2015, and 2016, were as follows:

|                                       | Year ended Nov. 30, 2016 | Year ended Nov. 30, 2015 |
|--------------------------------------------|--------------------------|--------------------------|
| Short-Term Bond Fund                       |
|     Ordinary income              | $84,169                  | $82,326                  |
| Bond Income Fund                           |
|     Ordinary income              | 256,646                  | 264,141                  |
| Core Fund                                  |
|     Ordinary income              | -                        | 193,556                  |
|     Long-term capital gain1 | -                        | 257,851                  |
| Global High Income Fund                    |
|     Ordinary income              | -                        | 382,139                  |
| Growth Fund                                |
|     Ordinary income              | 29,765                   | 76,776                   |
|     Long-term capital gain1 | 1,067,190                | 4,478,604                |
| International Fund                         |
|     Ordinary income              | 216,548                  | 1,345,099                |
|     Return of capital            | -                        | 31,767                   |

1Long-Term Capital Gain dividend designated pursuant to Section 852(b)(3) of the Internal Revenue Code.

### NOTE 5 — Federal Income Taxes

The cost basis of investments for federal income tax purposes at November 30, 2016 was as follows:

|                                           | Short-Term Bond | Bond Income |
|------------------------------------------------|-----------------|-------------|
| Cost of investments                            | $9,847,459      | $8,951,758  |
| Gross tax unrealized appreciation              | 17,203          | 321,415     |
| Gross tax unrealized depreciation              | (50,831)        | (186,871)   |
| Net tax unrealized appreciation (depreciation) | (33,628)        | 134,544     |

 

|                                           | Core       | GlobalHigh Income |
|------------------------------------------------|------------|-------------------|
| Cost of investments                            | $7,393,371 | $7,334,291        |
| Gross tax unrealized appreciation              | 996,063    | 414,904           |
| Gross tax unrealized depreciation              | (230,726)  | (861,514)         |
| Net tax unrealized appreciation (depreciation) | 765,337    | (446,610)         |

 

|                              | Growth      | International |
|-----------------------------------|-------------|---------------|
| Cost of investments               | $23,662,077 | $39,184,174   |
| Gross tax unrealized appreciation | 10,134,750  | 22,485,161    |
| Gross tax unrealized depreciation | (1,057,193) | (1,545,313)   |
| Net tax unrealized appreciation   | 9,077,557   | 20,939,848    |

As of November 30, 2016, components of distributable earnings on a tax basis were as follows:

| Short-Term Bond               |
|-------------------------------|
| Undistributed ordinary income | $1,174 |
| Tax accumulated earnings      | 1,174 |
| Unrealized depreciation       | (33,628) |
| Total accumulated losses      | (32,454) |

 

| Bond Income                |
|----------------------------|
| Accumulated capital losses | $(48,197) |
| Unrealized appreciation    | 134,544 |
| Total accumulated earnings | 86,347 |

 

| Core                          |
|-------------------------------|
| Undistributed ordinary income | $132,290 |
| Tax accumulated earnings      | 132,290 |
| Accumulated capital losses    | (217,842) |
| Unrealized appreciation       | 765,337 |
| Other unrealized losses       | (46) |
| Total accumulated earnings    | 679,739 |

 

| Global High Income            |
|-------------------------------|
| Undistributed ordinary income | $337,964 |
| Tax accumulated earnings      | 337,964 |
| Accumulated capital losses    | (20,078) |
| Unrealized depreciation       | (446,610) |
| Other unrealized losses       | (1,108) |
| Total accumulated losses      | (129,832) |

 

| Growth                        |
|-------------------------------|
| Undistributed ordinary income | $153,684 |
| Tax accumulated earnings      | 153,684 |
| Unrealized appreciation       | 9,077,557 |
| Total accumulated earnings    | 9,231,241 |

 

| International                 |
|-------------------------------|
| Undistributed ordinary income | $868,348 |
| Tax accumulated earnings      | 868,348 |
| Accumulated capital losses    | (135,940) |
| Unrealized appreciation       | 20,939,848 |
| Other unrealized losses       | (288) |
| Total accumulated earnings    | 21,671,968 |

 

| 56 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

----

## Notes To Financial Statements (continued)

As of November 30, 2016, the Funds had capital loss carryforwards as follows, subject to regulation. The Registered Investment Company Modernization Act requires that the Funds use long-term and short-term loss carryforwards with unlimited expiration prior to those with an expiration. Prior to their expiration, such loss carryforwards may be used to offset future new capital gains realized for federal income tax purposes.

|                         | Carryforward | Expiration |
|------------------------------|--------------|------------|
| Bond Income                  |
|                         | $20,467      | 2017       |
| Long-term loss carryforward  | 27,730       | Unlimited  |
|                         | 48,197       |       |
|                         |
| Core                         |
| Short-term loss carryforward | $55,801      | Unlimited  |
| Long-term loss carryforward  | 162,041      | Unlimited  |
|                         | 217,842      |       |
|                         |
| Global High Income           |
| Long-term loss carryforward  | $20,078      | Unlimited  |
|                         | 20,078       |       |
|                         |
| International                |
|                         | $135,940     | 2019       |
|                         | 135,940      |       |

### NOTE 6 — Investments

Investment transactions other than short-term investments for the fiscal year ended November 30, 2016, were as follows:

|               | Purchases  | Sales       |
|--------------------|------------|-------------|
| Short-Term Bond    | $3,582,632 | $866,739    |
| Bond Income        | 2,582,687  | 938,013     |
| Core               | 3,450,330  | 3,138,679   |
| Global High Income | 1,760,774  | 1,746,700   |
| Growth             | 9,219,006  | 25,674,960  |
| International      | $ -        | $13,727,230 |

### NOTE 7 — Custodian

Under agreements in place with the Trust's custodian, Bank of New York Mellon,  custody fees are reduced by credits for cash balances. Such reductions for the fiscal year ended November 30, 2016, were as follows:

| Custodian Fee Credits |
|-----------------------|
| Short-Term Bond       | $371 |
| Bond Income           | 412 |
| Core                  | 478 |
| Global High Income    | 544 |
| Growth                | 1,881 |
| International         | 4,668 |

### NOTE 8 — Subsequent Events

In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

The Funds declared the payment of a distribution to be paid on December 30, 2016, to all shareowners of record on December 29, 2016, as follows:

|               | Dividend Income | Short-Term Capital Gain | Long-Term Capital Gain |
|--------------------|-----------------|-------------------------|------------------------|
| Short-Term Bond    | $0.00539        | $-                      | $-                     |
| Bond Income        | 0.01224         | -                       | -                      |
| Core               | 0.16871         | -                       | -                      |
| Global High Income | 0.44063         | -                       | -                      |
| Growth             | 0.08894         | -                       | -                      |
| International      | $0.13976        | $-                      | $-                     |

Dividend income distributions paid by Short-Term Bond and Bond Income Funds were accrued daily.

There were no other events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.

 

| Annual Report | November 30, 2016 | 57 |
|---------------|-------------------|----|

### Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of TrusteesSaturna Investment Trust,

We have audited the accompanying statement of assets and liabilities of Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, and Sextant International Fund, each a series of Saturna Investment Trust (the "Trust"), including the schedules of investments, as of November 30, 2016, and the related statements of operations for the year then ended, the statements of 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, except with respect for Sextant Global High Income Fund, the financial highlights for each of the four years in the period then ended and for the period March 30, 2012 (commencement of operations) to November 30, 2012. 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. The Trust is not required to have, nor were we engaged to perform, an audit of their 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 not for the purpose 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, 2016, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An 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 Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, and Sextant International Fund as of November 30, 2016, the results of their operations, the changes in their net assets and the financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.

Philadelphia, PennsylvaniaJanuary 30, 2017

*/s/ Tait, Weller & Baker LLP*Tait, Weller & Baker LLP

| 58 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

 

| Expenses | **(unaudited)** |
|----------|-----------------|

All mutual funds have operating expenses. As a Sextant Fund shareowner, you incur ongoing costs, including management fees, distribution (or service) 12b-1 fees, and other fund expenses such as shareowner reports (such as this one). Operating expenses, which are deducted from a fund's gross earnings, directly reduce the investment return of a fund. Mutual funds (unlike other financial investments) only report their results after deduction of operating expenses.

With the Sextant Funds, unlike many other mutual funds, you do not incur sales charges (loads) on purchases, reinvested dividends, or other distributions. You do not incur redemption fees or exchange fees. You may incur fees related to extra services requested by you for your account, such as bank wires. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

**Examples**

The following example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016, to November 30, 2016).

**Actual Expenses**

The first line for each Fund 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 you paid over the period. Simply divide your account value by $1,000 (for example, an $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 Period" to estimate the expenses you paid on your account during this period. The Funds may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

**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 balance or expenses you paid for the period. You may use this information to compare ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as charges for extra services like bank wires.

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

|                                     | **Beginning Account Value****(June 1, 2016)** | **Ending Account Value****(November 30, 2016)** | **Expenses Paid****During Period1** | **AnnualizedExpense Ratio** |
|------------------------------------------|-----------------------------------------------|-------------------------------------------------|------------------------------------------|-----------------------------|
| **Short-Term Bond Fund**                 |
| Actual                                   | $1,000                                        | $1,000.90                                       | $3.76                                    | 0.75%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,021.24                                       | $3.80                                    | 0.75%                       |
|                                     |
| **Bond Income Fund**                     |
| Actual                                   | $1,000                                        | $992.20                                         | $4.40                                    | 0.88%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,020.58                                       | $4.47                                    | 0.88%                       |
|                                     |
| **Core Fund**                            |
| Actual                                   | $1,000                                        | $996.50                                         | $5.31                                    | 1.06%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,019.68                                       | $5.37                                    | 1.06%                       |
|                                     |
| **Global High Income Fund**              |
| Actual                                   | $1,000                                        | $1,094.20                                       | $4.71                                    | 0.90%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,020.50                                       | $4.55                                    | 0.90%                       |
|                                     |
| **Growth Fund**                          |
| Actual                                   | $1,000                                        | $1,022.30                                       | $3.99                                    | 0.79%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,021.06                                       | $3.98                                    | 0.79%                       |
|                                     |
| **International Fund**                   |
| Actual                                   | $1,000                                        | $1,013.30                                       | $5.79                                    | 1.15%                       |
| Hypothetical (5% return before expenses) | $1,000                                        | $1,019.25                                       | $5.81                                    | 1.15%                       |

*1 Expenses are equal to the annualized expense ratio indicated above (based on the most recent semi-annual period of June 1, 2016, through November 30, 2016), multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).*

| Annual Report | November 30, 2016 | 59 |
|---------------|-------------------|----|

 

| Trustees and Officers | *(unaudited)* |
|-----------------------|---------------|

 

| **Name (Age) and Address** | **Position(s) Held with Trust and Number of Saturna Fund Portfolios Overseen**   | **Principal occupation(s) during past 5 years, including Directorships** | **Other Directorships held by Trustee**                                                                                                                   |
|----------------------------|----------------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Independent Trustees**   |
| (photo omitted)            | **John E. Love** (84)1300 N. State StreetBellingham WA 98225                     | Chairman (since 2006);Independent Trustee (since 1987);Nine              | Owner, J.E. Love Co., (agricultural equipment manufacturer)                                                                                               | None |
| (photo omitted)            | **Gary A. Goldfogel**, MD (58)1300 N. State StreetBellingham WA 98225            | Independent Trustee (since 1995);Nine                                    | Medical Examiner (pathologist)

Owner, Avocet Environmental Testing (laboratory)                                                                          | None |
| (photo omitted)            | **Herbert G. Grubel**, PhD (82)1300 N. State StreetBellingham WA 98225           | Independent Trustee (since 2005);Nine                                    | Senior Fellow, Fraser Institute; Professor (Emeritus) of Economics, Simon Fraser University

Author                                                       | Amana Mutual Funds Trust(retired 2011) |
| (photo omitted)            | **Ronald H. Fielding**, MA, MBA, CFA (67)1300 N. State StreetBellingham WA 98225 | Independent Trustee (since 2009);Thirteen                                | Director, ICI Mutual Insurance Company                                                                                                                    | Amana Mutual Funds Trust |
| **Interested Trustee**     |
| (photo omitted)            | **Nicholas F. Kaiser**, MBA, CFA  (70)1300 N. State StreetBellingham WA 98225    | President, Trustee1 (since 1990);Thirteen                           | Chairman and Director, Saturna Capital Corporation

Chairman, Director, and President, Saturna Trust Company

Former Director, Saturna Brokerage Services | Amana Mutual Funds Trust |

 

| 60 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

 

| Trustees and Officers | *(continued)* | *(unaudited)* |
|-----------------------|---------------|---------------|

 

| **Name (Age) and Address**        | **Position(s) held with Trust and Number of Saturna Fund Portfolios Overseen** | **Principal occupation(s) during past 5 years, including Directorships** | **Other Directorships held by Trustee**                                                                                                                                                                       |
|-----------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Officers Who Are Not Trustees** |
| (photo omitted)                   | **Phelps S. McIlvaine**(63)1300 N. State StreetBellingham, WA 98225            | Vice President (since 1994);N/A                                          | Vice President, Saturna Capital Corporation

Director, Vice President, and former Treasurer Saturna Brokerage Services                                                                                        | N/A |
| (photo omitted)                   | **Christopher R. Fankhauser** (44)1300 N. State StreetBellingham, WA 98225     | Treasurer1 (since 2002);N/A                                         | Chief Operations Officer, Saturna Capital Corporation

Vice President and Chief Operations Officer, Saturna Brokerage Services

Director, Vice President, and Chief Operations Officer, Saturna Trust Company | N/A |
| (photo omitted)                   | **Michael E. Lewis** (55)1300 N. State StreetBellingham, WA 98225              | Chief Compliance Officer1(since 2012);N/A                           | Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds                                                                                                                        | N/A |
| (photo omitted)                   | **Thomas R. Phillips** (56)1300 N. State StreetBellingham, WA 98225            | Secretary(since 2015);N/A                                                | Chief Legal Officer, Saturna Capital Corporation

Former Partner and Deputy General Counsel, Lord Abbett & Co. LLC                                                                                        | N/A |
| (photo omitted)                   | **Jacob A. Stewart** (36)1300 N. State StreetBellingham, WA 98225              | Anti-Money Laundering Officer1(since 2015);N/A                      | Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services

Chief Compliance Officer, Saturna Brokerage Services

Bank Secrecy Act Officer, Saturna Trust Company                 | N/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 Trust's Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds' website, www.sextantfunds.com, includes additional information about the Trustees.

On November 30, 2016, the trustees, officers, and their affiliates as a group owned 36.0%, 28.3%, 41.6%, 52.6%, 14.3% and 6.9% of the outstanding shares of Short-Term Bond, Bond Income, Core, Global High Income, Growth and International Funds, respectively. Saturna Capital Corporation is the Trust's adviser and Saturna Brokerage Services, Inc. is the Trust's distributor.

During the year ended November 30, 2016, the Independent Trustess were each paid by the Trust: (1) $2,000 annual retainer plus $1,000 per board meeting attended (in person or by phone), plus reimbursement of travel expenses; (2) $250 for committee meetings; and (3) $250 per quarter for serving as chariman of the board or any committee.

As of November 30, 2016, all Trustees owned shares in one or more Saturna Investment Trust Funds.

Mr. Kaiser is an Interested Trustee by reason of his positions with the Trust's adviser (Saturna Capital Corporation) and underwriter (Saturna Brokerage Services), and is the primary manager of the Saturna Sustainable Equity Fund and Sextant International Fund portfolios. He is paid by Saturna Capital a salary, plus a bonus for each month the Saturna Sustainable Equity Fund or Sextant International Fund portfolios earn a 4 or 5 star rating from Morningstar (see www.saturna.com). The officers are paid by Saturna Capital and not the Trust. As of November 30, 2016, all Saturna Capital employees listed above as officers owned shares in one or more of the Saturna Investment Trust funds, with Mr. Kaiser owning (directly or indirectly) over $10 million.

*1 Holds the same postion with Amana Mututal Funds Trust*

| Annual Report | November 30, 2016 | 61 |
|---------------|-------------------|----|

 

| Renewal of Investment Advisory Contract | **(unaudited)** |
|-----------------------------------------|-----------------|

During their meeting of September 24, 2016 the Trustees of Saturna Investment Trust discussed the continuance of the Investment Advisory and Administration Agreements between each of the Sextant Funds (Bond Income Fund, Global High Income Fund, Growth Fund, International Fund, Core Fund, and Short-Term Bond Fund) (the "Funds") and Saturna Capital Corporation ("Saturna"). In considering the renewal of the agreements with Saturna, the Trustees discussed the nature, extent, and quality of the services provided by Saturna to the Trust and each of the Funds. The Trustees considered that the Funds offer a full range of high-quality investor services. The Trustees discussed Saturna's experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, retirement plan and trust services, accounting, marketing, and distribution — all in addition to investment management.

The Trustees took into consideration Saturna's continued avoidance of significant operational and compliance problems, plus its investments in infrastructure, information management systems, personnel, training, and investor education materials, all designed to provide high quality investor services and meet investor needs. They recognized Saturna's efforts to recruit and retain increasingly qualified, experienced, and specialized staff and improve the capital base on which Saturna operates, which the Trustees believe is important to the long-term success of the Funds. They appreciate Saturna's focus on investors and its efforts to avoid potential conflicts of interest.

The Trustees considered the investment performance of each Fund over time, including each Fund's average annual total returns relative to its benchmark for the one-, three-, five-, and 10-year periods, all as of July 31, 2016. The Trustees also considered comparative information published by Morningstar Inc. ("Morningstar"), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed at length each Fund's performance relative to the Fund's Morningstar category for the one-, three-, five-, and 10-year periods ended August 31, 2016. The Trustees also considered each Fund's Morningstar performance rankings (one through five stars) for the one-, three-, five-, and 10-year periods, ended as of July 31, 2016, and also noted the recent sustainability ratings assigned to some of the Funds by Morningstar. In addition, the Trustees also considered each Fund's performance ranking relative to the Fund's category selected by Lipper, Inc.

With respect to long-term (10-year) performance, the Trustees found that the investment performance of the Sextant International Fund, both in absolute numbers and relative to the Fund's Morningstar category remained strong. The Trustees noted that the Fund's average annual total return for the ten-year period ended on August 31, 2016 exceeded the Morningstar category average and the Fund outperformed its benchmark during the same period. The Trustees noted that Sextant Growth Fund, Sextant Short-Term Bond Fund, and Sextant Bond Income Fund each had underperformed their respective Morningstar category averages and benchmarks for the same 10-year period.

The Trustees considered the short- and medium-term performance of the Funds, noting that each Fund's average annual total return for the five-year period ended on August 31, 2016 was below the respective Morningstar category average for the same period. The Trustees noted that for the three-year period ended on August 31, 2016, Sextant Bond Income Fund, and Sextant Growth Fund each underperformed their respective Morningstar category averages, while Sextant Global High Income Fund, Sextant International Fund, and Sextant Short-Term Bond Fund each outperformed their respective Morningstar category average. The Trustees also considered the Funds' short-term performance, noting that for the one-year period ended on August 31, 2016, Sextant Bond Income Fund, Sextant Growth Fund, and Sextant Short-Term Bond Fund each underperformed their respective Morningstar category averages, while Sextant Core Fund, Sextant Global High Income Fund, and Sextant International Fund each outperformed their respective Morningstar category averages.

The Trustees noted the risk-averse investment style and other factors, which can affect a Fund's performance relative to the Fund's broader Morningstar categories. The Trustees noted instances where a Fund had underperformed relative to its Morningstar category average during a period, but had outperformed the Fund's benchmark during the same period. The Trustees also noted certain differences between a Fund and the peer funds within the relevant Morningstar category, including differences in investment strategies and asset size. The Trustees found that Saturna continued to manage the Funds in a manner that is designed to be risk-averse and attractive to long-term investors. The Trustees discussed and considered the efforts of Saturna to make additional resources available to assist in managing the Funds. The Trustees also considered Saturna's focus on improving investment performance without incurring materially higher levels of risk.

The Trustees also considered the performance and expenses of each Fund as compared to a smaller group of funds with similar assets and investment objectives and strategies. The Trustees considered these comparative performance expense data, along with the comparative data published by Morningstar and each Fund's performance relative to its benchmark, to evaluate each Fund's performance over near-term and long-term time periods.

The Trustees also reviewed the fees and expenses of the Funds and considered the components of each Fund's operating expenses. The Trustees noted the steps that Saturna has undertaken to maintain competitive levels of Fund operating expenses. They noted the significant sponsorship of the Funds by Saturna evidenced, in part, by the amount of fees and expenses paid by Saturna out of its own resources (known as "revenue sharing") to unaffiliated intermediaries, as well as Saturna's initiatives to reduce its advisory fees. Recognizing that Saturna pays certain fees and expenses that are often borne by funds, the Trustees appreciated

| 62 | November 30, 2016 | Annual Report |
|----|-------------------|---------------|

 

| Renewal of Investment Advisory Contract | ***(continued)*** | **(unaudited)** |
|-----------------------------------------|-------------------|-----------------|

Saturna's efforts to help make the Funds more widely available and less expensive than would otherwise be the case without Saturna's efforts.

The Trustees recognized that the Funds remain relatively small and there have not been opportunities to consider economies of scale. The Trustees noted that Saturna continues to operate the Funds, oftentimes at considerable costs to itself.

The Trustees reviewed Saturna's financial information and discussed the issue of Saturna's profitability as related to management and administration of the Trust. They discussed the reasonableness of Saturna's profitability as part of their evaluation of whether the advisory fees bear a reasonable relationship to the mix of services provided by Saturna, including the nature, extent, and quality of such services.

The Trustees considered and compared the fees charged by Saturna to other types of accounts, including non-mutual fund advisory clients. The Trustees noted the differences between the full range of services Saturna provides to the Funds, including investment advisory services, transfer agency services, shareholder services, and other services, as compared to the investment advisory services provided to the other advisory accounts.

The Trustees considered potential benefits to Saturna's other business lines from acting as investment adviser to the Funds, but also recognized that Saturna's other business lines benefit the Funds. The Trustees also noted that there were no soft dollar arrangements with respect to trading in the Funds' portfolios. The Trustees considered whether there are other potential benefits to Saturna in continuing to manage the Funds and the Trustees found that there were no material benefits other than Saturna's receipt of advisory fees and the fact that Saturna Brokerage Services, a wholly owned subsidiary of Saturna, receives distribution and shareholder services fees under Rule 12b-1, which it would not otherwise receive if Saturna did not serve as the investment manager for the Funds. The Trustees also noted that Saturna Brokerage Services voluntarily waives brokerage commissions for executing Fund portfolio transactions, resulting in lower transaction costs.

The Trustees concluded that the fees paid by the Funds to Saturna were, from an arm's-length bargaining perspective, reasonable and in the best interest of the Funds and their shareowners in light of the services provided, comparative performance, expense and advisory fee information, costs of services provided, profits to be realized, and benefits derived or to be derived by Saturna from its relationship with the Funds. Following this discussion, the Trustees unanimously agreed to renew the agreements of Sextant Bond Income Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund, Sextant Core Fund, and Sextant Short-Term Bond Fund, with Saturna Capital Corporation.

| Annual Report | November 30, 2016 | 63 |
|---------------|-------------------|----|

 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Availability of Portfolio Information
(1) The Sextant Funds file complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.

(2) The Funds' Forms N-Q are available on the SEC's website at www.sec.gov and at www.sextantfunds.com.

(3) The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

(4) The Funds make a complete schedule of portfolio holdings after the end of each month available to investors at ww.sextantfunds.com.
Householding Policy
To reduce expenses, we may mail only one copy of the Funds' prospectus, each annual and semi-annual report, and proxy statements when necessary, to those addresses shared by two or more accounts. If you wish to receive individual and/or more copies of these documents, please call us at 1-800-728-8762 or write to us at Saturna Capital/Sextant Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you individual copies 30 days after receiving your request.

If you are currently receiving multiple copies and wish to receive only one copy, please call us at 1-800-728-8762 or write to us at Saturna Capital/Sextant Mutual Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you a single copy with subsequent report mailings. | Availability of Proxy Voting Information
(1) A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Funds' website at www.sextantfunds.com; and (c) on the SEC's website at www.sec.gov.

(2) Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Funds' website at www.sextantfunds.com; and (c) on the SEC's website at www.sec.gov.
Privacy Statement
At Saturna Capital and Saturna Investment Trust, we understand the importance of maintaining the privacy of your financial information. We want to assure you that we protect the confidentiality of any personal information that you share with us. In addition, we do not sell information about our current or former customers.

In the course of our relationship, we gather certain nonpublic information about you, including your name, address, investment choices, and account information. We do not disclose your information to unaffiliated third parties unless it is necessary to process a transaction; service your account; deliver your account statements, shareowner reports and other information; or as required by law. When we disclose information to unaffiliated third parties, we require a contract to restrict the companies' use of customer information and from sharing or using it for any purposes other than performing the services for which they were required.

We may share information within the Saturna Capital family of companies in the course of informing you about products or services that may address your investing needs.

We maintain our own technology resources to minimize the need for any third party services, and restrict access to information within Saturna. We maintain physical, electronic, and procedural safeguards to guard your personal information. If you have any questions or concerns about the security or privacy of your information, please call us at 1-800-728-8762. |
| (logo omitted)

Saturna Capital1300 North State StreetBellingham, WA 98225www.saturna.com1-800-728-8762                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | This report is issued for the information of the shareowners of the Funds. 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 Funds. The Sextant Funds are series of Saturna Investment Trust.

Saturna Brokerage Services, Distributor |
| ♻ This report is printed on paper with a minimum of 30% post-consumer fiber using soy-based inks. It is 100% recyclable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| SustainableEquity | SEEFX |   | SustainableBond | SEBFX |
|-------------------|-------|--------|-----------------|-------|

# Saturna Sustainable Funds

## Annual Report     November 30, 2016

----

| Performance Summary (as of December 31, 2016) | *(unaudited)* |
|-----------------------------------------------|---------------|

**Average Annual Returns***(before any taxes paid by shareowners)*

|                                | **1 Year** | **3 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
|-------------------------------------|------------|------------|------------|-------------|-------------------------|
| **Sustainable Equity Fund (SEEFX)** | -1.43%     | n/a        | n/a        | n/a         | 1.23%                   |
| S&P Global 1200 Index           | 8.87%      | 4.43%      | 10.90%     | 4.50%       | n/a                     |
|                                |
| **Sustainable Bond Fund (SEBFX)**   | 1.85%      | n/a        | n/a        | n/a         | 1.02%                   |
| Citi WorldBIG Index                 | 1.95%      | -0.18%     | 0.29%      | 3.36%       | n/a                     |

***Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results.** Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-800-728-8762 or visiting www.saturnasustainable.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Funds that invest in foreign securities may involve greater risk, including political and economic uncertainties of foreign countries as well as the risk of currency fluctuations.*

***A note about risk:**Please see Notes to Financial Statements beginning on page 20 for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see the Funds' prospectus or each Fund's summary prospectus.*

*A Fund's 30-Day Yield, sometimes referred to as "standardized yield" or "SEC yield," is expressed as an annual percentage rate using a method of calculation adopted by the Securities and Exchange Commission (SEC). The 30-Day Yield provides an estimate of a Fund's investment income rate, but may not equal the actual income distribution rate.*

*1 By regulation, expense ratios shown in these tables are as stated in the Funds' most recent Prospectus, dated March 29, 2016, and incorporate results for the fiscal year ended November 30, 2015. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different periods.  Also by regulation, the performance in this table represents the most recent quarter-end performance rather than performance through the Funds' most recent fiscal period.  Saturna Capital, the Fund's adviser, has voluntarily capped actual expenses of the Sustainable Equity Fund at 0.99% and actual expenses of the Sustainable Bond Fund at 0.89% through March 31, 2017.*

*The S&P Global 1200 Index is a global stock market index covering nearly 70% of the world's equity markets. Investors cannot invest directly in the index. The Citi WorldBIG Index is a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed income markets. Investors cannot invest directly in the indices.*

*The Saturna Sustainable Funds limit the securities they purchase to those consistent with sustainable principles. This limits opportunities and may affect performance.*

***Please consider an investment's objectives, risks, charges, and expenses carefully before investing. To obtain this and other important information about the Saturna Sustainable Funds in a prospectus or summary prospectus, ask your financial advisor, visit www.saturnasustainable.com, or call toll-free 1-800-728-8762. Please read the prospectus or summary prospectus carefully before investing.***

| 2 | November 30, 2016         Annual Report |
|---|-------------------------------------------------------------|

### Fellow Shareowners:

During 2016 voters around the world hit out against globalization and liberal trade as nationalistic and populist forces ascended in the United States, Europe, and Asia. Stock markets smiled, however, gaining nicely almost everywhere but China, which we avoid as it's too opaque.

For the year ended November 30, 2016, the S&P Global 1200 Index returned  4.51%. The Citi WorldBIG Index returned 2.89% for the same period. For this period, the Sustainable Equity Fund's total return was -3.08% and the Sustainable Bond Fund's total return was 1.37%.

### Saturna Sustainable  Funds seek sustainable investments with low risks in areas of the environment, social responsibility, and governance (ESG).

With years of experience managing values-based mutual fund portfolios, Saturna Capital seeks to control the costs to investors of operating these new Saturna Sustainable Funds. To further lower expenses, the Trustees agreed in December to seek ways to terminate the 12b-1 fee distribution expense on fund shares.

Saturna Sustainable Funds began operations on March 27, 2015. After their first complete year of operations, at November 30, 2016, assets of the two Funds reached $11.92 million. The following pages provide details of the assets and operations of the two Funds.

**Going Forward**

Since the election of Donald Trump, the economic outlook has brightened and stock markets have rallied. Republican control of the executive, the legislative, and within months the judiciary branches of the US government means many changes. The Affordable Care Act, a financial failure, will be greatly revised as Medicare and Medicaid also get redesigned. Federal tax rates and tax deductions will be cut. Interest rates are higher and likely to rise, rewarding savers while reflecting higher inflationary expectations. Capital spending and domestic manufacturing will increase as various barriers to trade slip into place. The Trump administration will be truly different, as his cabinet of businessmen and generals will replace Washington bureaucrats.

Domestic financial markets should continue up if real change is experienced in Washington during the spring. We will continue to invest in innovative companies with strong business advantages and balance sheets. We aim to avoid companies dependent on government spending and the regions and countries that will be hurt the most in austerity. 

Turbulent times also create opportunity, and we seek entrepreneurial companies that can grow profits. Indeed, equity investors are optimistic that growing corporate earnings mean they will be rewarded.

The US has ended its stimulative bond-buying programs, but Europe and Japan continue similar efforts. The long-expected transition to higher interest rates has begun, and yields across the bond ladder have jumped in the last two months.

**Bloomberg Notes Green Bond Market Growth**

Indicating the growth of sustainable investing, annual issuance of so-called green bonds reached a record of $95.1 billion in 2016, Bloomberg New Energy Finance said in a note to clients on January 19.

The market for green bonds, fixed income securities that Bloomberg defines as "green" due to their environmental or climate-aligned use of proceeds, has grown at a rate of 30 percent since 2013. Globally, the largest green bond sellers in 2016 were financial organizations that provide renewable energy project finance. However, more nonfinancial corporations are issuing green debt to fund the "greening" of their operations. We note that our two funds own either the green bonds or common stock of one of our favorite sustainable companies: Apple Inc.

| November 30, 2016         Annual Report | 3 |
|-------------------------------------------------------------|---|

**Morningstar Awards Saturna Sustainable Equity Fund Top Sustainability Rating**

The Morningstar Sustainability RatingTM for funds premiered in March 2016 (see details on page 5), giving investors across the globe a way to compare fund portfolios based on a standard measure of sustainability. These ratings are calculated using fund holdings data underpinned with company-level environmental, social, and governance (ESG) information from Sustainalytics, a leading provider of ESG research. Investors are cautioned however, that more than 100 vendors offer "sustainable" investments data, and that no accepted global measurement yet exists.

We are pleased to note that Saturna Sustainable Equity Fund ranked in the first percentile of 840 funds in the World Stock category, earning the Fund the top "Five Globe" Sustainability Rating

Going forward, Saturna's values-based approach to investing seeks to provide firsthand insight into the risk mitigation dimensions of sustainable investing. We stand ready to serve you in both bull and bear markets by seeking to provide steady, long-term growth with a focus on preservation of capital.

Respectfully,

(photo omitted)

**Nicholas Kaiser**,President

(photo omitted)

**John E. Love**,Independent Board Chairman

 

| Saturna Sustainable Funds Portfolio Management |
|------------------------------------------------|
| (photo omitted)                                | **Nicholas Kaiser** MBA, CFA®**Saturna Sustainable Equity Fund**Portfolio Manager |   | (photo omitted) | **Patrick Drum** MBA, CFA®, CFP®**Saturna Sustainable Bond Fund**Portfolio Manager |
| (photo omitted)                                | **Jane Carten** MBA**Saturna Sustainable Equity Fund**Deputy Portfolio Manager | (photo omitted) | **Bryce Fegley** CFA®, CIPM®**Saturna Sustainable Bond Fund**Deputy Portfolio Manager |

| 4 | November 30, 2016         Annual Report |
|---|-------------------------------------------------------------|

 

| Morningstar Sustainability RatingsTM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **As of November 30, 2016***(unaudited)*                                                                                                                                                                                                                                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| At Saturna Capital, we have long described ourselves as value and values-based investors. We believe our approach improves the likelihood of achieving superior investment results over the long term. Our approach also leads to investment portfolios we can be proud of from the perspective of Environmental, Social, and Governance (ESG) issues. Morningstar recently partnered with leading ESG research firm Sustainalytics to develop the Morningstar Sustainability RatingTM — here are Saturna Sustainable Equity Fund's fiscal year-end results: |
| **Saturna Sustainable Equity Fund**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The Morningstar Sustainability RatingTM gives investors across the globe a way to compare fund portfolios based on a standard measure of sustainability. The rating is a holdings-based calculation using company-level environmental, social, and governance (ESG) analytics from Sustainalytics. |
| **SEEFX**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                         |
| *Ranked in 1st percentile among 840 World Stock Funds*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| *The Saturna Sustainable Bond Fund (SEBFX) was not rated as of November 30, 2016.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

***The Morningstar Sustainability Rating and the Morningstar Portfolio Sustainability Score are not based on fund performance and are not equivalent to the Morningstar Rating ("Star Rating").***

***© 2016 Morningstar®.** All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.*

*Morningstar Sustainability Ratings as of November 30, 2016, and Portfolio Sustainability Scores are as of October 31, 2016. The Morningstar Sustainability RatingTM is intended to measure how well the issuing companies of the securities within a fund's portfolio are managing their environmental, social, and governance ("ESG") risks and opportunities relative to the fund's Morningstar category peers. The Morningstar Sustainability Rating calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability ScoreTM. The Morningstar Portfolio Sustainability Score is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund's rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe.*

*A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics' ESG scores from the same month as the portfolio as-of date*

*The Saturna Sustainable Equity Fund was rated on 82% of Assets Under Management.*

*The Morningstar Portfolio Sustainability Scores and Morningstar Sustainability Ratings are new and it is anticipated that Morningstar will issue the scores and ratings monthly. The Fund's portfolio is actively managed and is subject to change, which may result in a different Morningstar Sustainability Score and Rating.*

*% Rank in Category is the fund's percentile rank for the specified time period relative to all funds that have the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Percentile ranks within categories are most useful in those categories that have a large number of funds.*

*The Saturna Sustainable Funds limit the securities they purchase to those consistent with Sustainable principles. This limits opportunities and may affect performance.*

*The Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund began operations March 27, 2015, and have not yet received Morningstar Star Ratings.*

| November 30, 2016         Annual Report | 5 |
|-------------------------------------------------------------|---|

 

| Saturna Sustainable Equity Fund: Performance Summary | *(unaudited)* |
|------------------------------------------------------|---------------|

**Average Annual Returns as of November 30, 2016**

|                                  | **1 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
|---------------------------------------|------------|------------|-------------|-------------------------|
| Sustainable Equity Fund (SEEFX)2 | -3.08%     | n/a        | n/a         | 1.23%                   |
| S&P Global 1200 Index             | 4.51%      | 10.39%     | 4.49%       | n/a                     |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | *Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 27, 2015, to an identical amount invested in the Standard & Poor's Global 1200 Index, a global stock market index covering nearly 70% of the world's equity markets. The graph shows that an investment in the Fund would have fallen to $9,459 versus $9,894 in the index.* |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.99%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.*

*2 Operations commenced on March 27, 2015.* |

**Fund Objective**

The objective of the Sustainable Equity Fund is capital appreciation.

| **Top Ten Holdings**              |                      | **Portfolio Diversification**            |
|-----------------------------------|---------------------------|------------------------------------------|
| **% of Total Net Assets**         | **% of Total Net Assets** |                                     |
| Taiwan Semiconductor ADS          | 5.8%                      | Household Products                       | 6.1% | █ |  |
| Murata Manufacturing              | 4.1%                      | Semiconductor Manufacturing              | 5.8% | █ |
| NXP Semiconductors                | 3.9%                      | Application Software                     | 5.5% | █ |
| Ramsay Health Care                | 3.6%                      | Electrical Components                    | 4.8% | █ |
| Toyota Motor ADS                  | 3.5%                      | Apparel, Footwear & Accessory Design | 4.7% | █ |
| Apple                             | 3.3%                      | Semiconductor Devices                    | 3.9% | █ |
| Home Depot                        | 3.3%                      | Health Care Facilities                   | 3.6% | █ |
| Accenture, Class A                | 3.2%                      | Automobiles                              | 3.5% | █ |
| Adobe Systems                     | 3.1%                      | Communications Equipment                 | 3.3% | █ |
| Starbucks                         | 3.0%                      | Home Products Stores                     | 3.3% | █ |
|                              | IT Services               | 3.2%                                     | █ |
| Restaurants                       | 3.0%                      | █                                  |
| Industries < 3.0%              | 34.6%                     | █                                  |
| Other assets (net of liabilities) | 14.7%                     | █                                  |

 

| 6 | November 30, 2016         Annual Report |
|---|-------------------------------------------------------------|

 

| Saturna Sustainable Equity Fund: Discussion of Fund Performance | *(unaudited)* |
|-----------------------------------------------------------------|---------------|

**Fiscal Year 2016**

(photos omitted)

Each year Merriam-Webster names a word of the year; "surreal" took the title for 2016. Brexit, Trump's election, terrorist attacks around the world, higher global temperatures, years of Middle East unrest. Each fits the definition of surreal: "marked by the intense irrational reality of a dream."  

Despite the global unrest and political noise, markets behaved rationally. After suffering one of the worst Januaries in history, global equities made a speedy recovery and continued to rise the remainder of the year. The optimism and resilience of investors are encouraging, if not dependable, factors in this new world. 

**Factors Affecting Past Performance**

Saturna Sustainable Equity Fund has an international framework — assets are allocated across 13 developed market economies — that did not benefit from 2016's strong US dollar. Some of the losses sustained by the Fund came from multinational corporations exposed to currency risk, including Starbucks, Nike, and Unilever. These are sustainable icons and leaders who will benefit from their thoughtful governance, community support, and green agendas over the long term. From November 30, 2015, to November 30, 2016 the Saturna Sustainable Equity Fund returned -3.08%. This compares unfavorably to the S&P Global 1200 Index's 4.51%. 

The energy market, in which we did not participate, enjoyed massive turnaround with the price of oil nearly doubling between January and November of 2016. Given the Fund's mission to invest in sustainable companies, it is common to be underweight Energy. The rise in oil prices has resulted in changes in energy economics, and we continue to assess values in alternative energy, seeking companies that are fiscally sustainable and planet-friendly.

The Fund benefited from its financials choices, especially Toronto Dominion and Chubb. Further investment in financial companies is compelling in this era of probable deregulation and we will be searching for new investments in the best actors with strong balance sheets and forward-thinking strategies. 

Our Health Care selections detracted from performance, most notably Novo Nordisk. Insulin price wars and pressure on the pharmaceutical industry contributed to the stock's decline. Novo Nordisk remains a durable company with long-term earnings growth and in-demand products; we will watch it carefully to be certain there are enough new products in the pipeline for the company to stay competitive in the future.

We continue to monitor our investments to ensure our initial investment theses remain intact. However, we are long-term investors and look at our investments with that perspective

**Looking Forward**

While markets continue to lift as a result of renewed corporate optimism, we will deploy capital and take cautious advantage of global earnings growth. We hold long-term views on the value of assets and see current trends as opportunities to acquire attractive companies at still reasonable valuations.

The Saturna Sustainable Equity Fund remains focused on stocks that we believe have exceptional long-term sustainability characteristics. Based on our internal research, stocks with superior governance, social, and environmental track records generally have lower associated volatility. To this we add a financial stability assessment. We believe that in the long run these stocks lessen uncertainty for investors and improve the probability of achieving superior returns.

**Portfolio Managers to Switch Roles**

Beginning April 1, 2017, the portfolio managers will switch roles. Jane K. Carten, age 41, the current deputy portfolio manager and president of Saturna Capital Corporation, will be the responsible portfolio manager. Nicholas Kaiser, age 70, will be the deputy portfolio manager. Mrs. Carten is a passionate advocate of sustainable investing and is leading Saturna forward as a strong and responsible corporate citizen in a true center of sustainability: Bellingham, Washington. Evidencing its belief in sustainable investing, as of January 2017, Saturna Capital Corporation owns just over 51% of the shares of Saturna Sustainable Equity Fund.

| November 30, 2016         Annual Report | 7 |
|-------------------------------------------------------------|---|

 

| Saturna Sustainable Equity Fund: Schedule of Investments | *As of November 30, 2016* |
|----------------------------------------------------------|---------------------------|

| **Common Stocks — 85.3%**                | **Number of Shares** | **Cost**    | **Market Value** | **Country1** | **Percentage of Assets** |
|------------------------------------------------|----------------------|-------------|------------------|-------------------|--------------------------|
|                                           |
| **Communications**                             |                 |
|                                           |
| **Internet Media**                             |
|    Alphabet, Class A2           | 122                  | $67,177     | $94,657          | United States     | 2.8%                     |
|                                           |
| **Telecom Carriers**                           |
|    China Mobile Limited              | 3,000                | 33,640      | 32,762           | Hong Kong         | 1.0%                     |
|                                           |
|                                           | **100,817**          | **127,419** |             | **3.8%**          |
|                                           |
| **Consumer Discretionary**                     |                 |
|                                           |
| **Apparel, Footwear & Accessory Design**   |
|    Nike, Class B                     | 1,558                | 90,564      | 78,009           | United States     | 2.3%                     |
|    Samsonite International           | 24,900               | 84,742      | 78,174           | Hong Kong         | 2.4%                     |
|                                           | 175,306              | 156,183     |             | 4.7%              |
|                                           |
| **Auto Parts**                                 |
|    Valeo                             | 960                  | 46,955      | 53,533           | France            | 1.6%                     |
|                                           |
| **Automobiles**                                |
|    Toyota Motor ADS                  | 1,000                | 107,633     | 118,530          | Japan             | 3.5%                     |
|                                           |
| **Home Products Stores**                       |
|    Home Depot                        | 850                  | 100,842     | 109,990          | United States     | 3.3%                     |
|                                           |
| **Jewelry & Watch Stores**                 |
|    Pandora                           | 581                  | 67,551      | 69,007           | Denmark           | 2.1%                     |
|                                           |
| **Other Commercial Services**                  |
|    Ecolab                            | 723                  | 82,096      | 84,396           | United States     | 2.5%                     |
|                                           |
| **Restaurants**                                |
|    Starbucks                         | 1,713                | 102,502     | 99,303           | United States     | 3.0%                     |
|                                           |
| **Specialty Apparel Stores**                   |
|    TJX Companies                     | 996                  | 66,642      | 78,027           | United States     | 2.3%                     |
|                                           |
|                                           | **749,527**          | **768,969** |             | **23.0%**         |
|                                           |
| **Consumer Staples**                           |                 |
|                                           |
| **Household Products**                         |
|    Church & Dwight               | 1,400                | 59,616      | 61,306           | United States     | 1.8%                     |
|    Kimberly-Clark de Mexico, Class A | 40,000               | 89,738      | 69,984           | Mexico            | 2.1%                     |
|    Unilever                          | 1,830                | 79,842      | 72,889           | Netherlands       | 2.2%                     |
|                                           |
|                                           | **229,196**          | **204,179** |             | **6.1%**          |
|                                           |
| *Continued on next page.*                      |

 

| 8 | November 30, 2016         Annual Report | *The accompanying notes are an integral part of these financial statements.* |
|---|-------------------------------------------------------------|------------------------------------------------------------------------------|

 

| Saturna Sustainable Equity Fund: Schedule of Investments | *As of November 30, 2016* |
|----------------------------------------------------------|---------------------------|

| **Common Stocks — 85.3%**    | **Number of Shares** | **Cost**    | **Market Value** | **Country1** | **Percentage of Assets** |
|------------------------------------|----------------------|-------------|------------------|-------------------|--------------------------|
|                               |
| **Financials**                     |                 |
|                               |
| **Banks**                          |
|    Toronto-Dominion Bank | 2,000                | $89,355     | $94,780          | Canada            | 2.8%                     |
|                               |
| **Consumer Finance**               |
|    Mastercard, Class A   | 824                  | 74,154      | 84,213           | United States     | 2.5%                     |
|                               |
| **Life Insurance**                 |
|    AIA Group             | 11,600               | 67,862      | 70,632           | Hong Kong         | 2.1%                     |
|                               |
| **P&C Insurance**              |
|    Chubb                 | 700                  | 77,224      | 89,600           | Switzerland       | 2.7%                     |
|                               |
| **Wealth Management**              |
|    Ashmore Group         | 18,000               | 71,760      | 61,611           | United Kingdom    | 1.9%                     |
|                               |
|                               | **380,355**          | **400,836** |             | **12.0%**         |
|                               |
| **Health Care**                    |                 |
|                               |
| **Health Care Facilities**         |
|    Ramsay Health Care    | 2,308                | 103,089     | 120,742          | Australia         | 3.6%                     |
|                               |
| **Large Pharma**                   |
|    Novo Nordisk ADS      | 1,569                | 86,408      | 52,718           | Denmark           | 1.6%                     |
|                               |
| **Medical Equipment**              |
|    Koninklijke Philips   | 2,000                | 53,980      | 57,220           | Netherlands       | 1.7%                     |
|                               |
|                               | **243,477**          | **230,680** |             | **6.9%**          |
|                               |
| **Industrials**                    |                 |
|                               |
| **Electrical Components**          |
|    Murata Manufacturing  | 1,000                | 133,698     | 138,725          | Japan             | 4.1%                     |
|    TE Connectivity       | 351                  | 22,755      | 23,742           | Switzerland       | 0.7%                     |
|                               |
|                               | **156,453**          | **162,467** |             | **4.8%**          |
|                               |
| **Materials**                      |                 |
|                               |
| **Containers & Packaging**     |
|    3M                    | 400                  | 65,264      | 68,696           | United States     | 2.1%                     |
|                               |
| **Specialty Chemicals**            |
|    Johnson Matthey       | 2,000                | 85,287      | 78,409           | United Kingdom    | 2.3%                     |
|                               |
|                               | **150,551**          | **147,105** |             | **4.4%**          |
|                               |
| **Technology**                     |                 |
|                               |
| **Application Software**           |
|    Adobe Systems2   | 1,000                | 108,410     | 102,810          | United States     | 3.1%                     |
|    Dassault Systemes ADR | 1,080                | 83,755      | 82,134           | France            | 2.4%                     |
|                               | 192,165              | 184,944     |             | 5.5%              |
|                               |
| *Continued on next page.*          |

 

| *The accompanying notes are an integral part of these financial statements.* | November 30, 2016         Annual Report | 9 |
|------------------------------------------------------------------------------|-------------------------------------------------------------|---|

 

| Saturna Sustainable Equity Fund: Schedule of Investments | *As of November 30, 2016* |
|----------------------------------------------------------|---------------------------|

| **Common Stocks — 85.3%**                                                                                                    | **Number of Shares** | **Cost**    | **Market Value** | **Country1** | **Percentage of Assets** |
|------------------------------------------------------------------------------------------------------------------------------------|----------------------|-------------|------------------|-------------------|--------------------------|
|                                                                                                                               |
| **Technology***(continued)*                                                                                                        |                 |
|                                                                                                                               |
| **Communications Equipment**                                                                                                       |
|    Apple                                                                                                                 | 1,000                | $113,474    | $110,520         | United States     | 3.3%                     |
|                                                                                                                               |
| **Infrastructure Software**                                                                                                        |
|    Microsoft                                                                                                             | 1,438                | 62,724      | 86,654           | United States     | 2.6%                     |
|                                                                                                                               |
| **IT Services**                                                                                                                    |
|    Accenture, Class A                                                                                                    | 900                  | 89,878      | 107,487          | Ireland           | 3.2%                     |
|                                                                                                                               |
| **Semiconductor Devices**                                                                                                          |
|    NXP Semiconductors2                                                                                              | 1,300                | 127,836     | 128,895          | Netherlands       | 3.9%                     |
|                                                                                                                               |
| **Semiconductor Manufacturing**                                                                                                    |
|    Taiwan Semiconductor ADS                                                                                              | 6,500                | 158,370     | 192,985          | Taiwan            | 5.8%                     |
|                                                                                                                               |
|                                                                                                                               | **744,447**          | **811,485** |             | **24.3%**         |
|                                                                                                                               |
| Total investments                                                                                                                  |                 | $2,754,823  | 2,853,140        |              | 85.3%                    |
| Other assets (net of liabilities)                                                                                                  |                 |        | 490,123          |              | 14.7%                    |
| **Total net assets**                                                                                                               |                 |        | **$3,343,263**   |              | **100.0%**               |
| *1 Country of domicile2 Non-income producing security*

*ADS: American Depositary ShareADR: American Depositary Receipt* |

 

| **Countries**                                                                                     | *(unaudited)* |
|---------------------------------------------------------------------------------------------------|---------------|
|                                                                                                   |
| Other assets (net of liabilities) 14.7%

*Weightings shown are a percentage of total net assets.* |

 

| 10 | November 30, 2016         Annual Report | *The accompanying notes are an integral part of these financial statements.* |
|----|-------------------------------------------------------------|------------------------------------------------------------------------------|

### Saturna Sustainable Equity Fund

| **Statement of Assets and Liabilities**                                        |
|--------------------------------------------------------------------------------|
| *As of November 30, 2016*                                                      |
|                                                                           |
| **Assets**                                                                     |
|     Investments in securities, at value (Cost $2,754,823)            | $2,853,140 |
|     Cash                                                             | 478,519 |
|     Dividend receivable                                              | 10,635 |
|     Prepaid filing and registration fees                             | 2,154 |
|     Reimbursement due from adviser                                   | 2,084 |
|     Receivable for fund shares sold                                  | 1,346 |
|         Total assets                                       | 3,347,878 |
| **Liabilities**                                                                |
|     Accrued audit expenses                                           | 2,500 |
|     Accrued printing expenses                                        | 999 |
|     Payable to affiliates                                            | 445 |
|     Accrued trustee expenses                                         | 295 |
|     Accrued distribution fees                                        | 183 |
|     Accrued postage expenses                                         | 165 |
|     Accrued other expenses                                           | 28 |
|         Total liabilities                                  | 4,615 |
| **Net assets**                                                                 | **$3,343,263** |
|                                                                           |
| **Analysis of net assets**                                                     |
|     Paid-in capital (unlimited shares authorized, without par value) | $3,548,581 |
|     Undistributed net investment income                              | 18,207 |
|     Accumulated net realized loss                                    | (321,723) |
|     Unrealized net appreciation on investments                       | 98,198 |
| **Net assets applicable to Fund shares outstanding**                           | **$3,343,263** |
|                                                                           |
| **Fund shares outstanding**                                                    | **354,595** |
|                                                                           |
| **Net asset value, offering, and redemption price per share**                  | **$9.43** |

 

| **Statement of Operations**                                  |
|--------------------------------------------------------------|
| *Year ended November 30, 2016*                               |
|                                                         |
| **Investment income**                                        |
|     Dividend income (net of foreign tax of $5,995) | $54,697 |
|         Total investment income          | 54,697 |
| **Expenses**                                                 |
|     Investment adviser fees                        | 21,429 |
|     Filing and registration fees                   | 17,232 |
|     Distribution fees                              | 8,242 |
|     Audit fees                                     | 2,557 |
|     Printing and postage                           | 2,073 |
|     Chief Compliance Officer expenses              | 989 |
|     Trustee fees                                   | 759 |
|     Retirement plan custodial fees                 | 456 |
|     Other expenses                                 | 392 |
|     Custodian fees                                 | 300 |
|     Legal fees                                     | 60 |
|         Total gross expenses             | 54,489 |
|     Less adviser fees waived or reimbursed         | (21,469) |
|     Less custodian fee credits                     | (300) |
|         Net expenses                     | 32,720 |
| **Net investment income**                                    | **$21,977** |
|                                                         |
|                                                         |
| Net realized loss from investments and foreign currency      | $(108,234) |
| Net decrease in unrealized appreciation on investments       | (23,667) |
| **Net loss on investments**                                  | **$(131,901)** |
|                                                         |
| **Net decrease in net assets resulting from operations**     | **$(109,924)** |

 

| *The accompanying notes are an integral part of these financial statements.* | November 30, 2016         Annual Report | 11 |
|------------------------------------------------------------------------------|-------------------------------------------------------------|----|

### Saturna Sustainable Equity Fund

| **Statements of Changes of Net Assets**                            | *Year ended November 30, 2016* | *Period ended November 30, 20151* |
|--------------------------------------------------------------------|--------------------------------|----------------------------------------|
| **Increase (decrease) in net assets from operations**              |
| **From operations**                                                |
|     Net investment income                                | $21,977                        | $6,405                                 |
|     Net realized loss on investments                     | (108,234)                      | (220,688)                              |
|     Net increase (decrease) in unrealized appreciation   | (23,667)                       | 121,865                                |
|         Net decrease in net assets             | (109,924)                      | (92,418)                               |
| **Distributions to shareowners from**                              |
|         Net investment income                  | -                              | (3,510)                                |
| **Capital share transactions**                                     |
|     Proceeds from sales of shares                        | 539,235                        | 3,648,078                              |
|     Value of shares issued in reinvestment of dividends  | -                              | 3,510                                  |
|     Cost of shares redeemed                              | (509,213)                      | (132,495)                              |
|         Net increase in net assets             | 30,022                         | 3,519,093                              |
| **Total increase  in net assets**                                  | **(79,902)**                   | **3,423,165**                          |
|                                                               |
| **Net assets**                                                     |
| Beginning of period                                                | 3,423,165                      | -                                      |
| End of period                                                      | 3,343,263                      | 3,423,165                              |
|                                                               |
| Undistributed net investment income                                | $18,207                        | $-                                     |
|                                                               |
| **Shares of the Fund sold and redeemed**                           |
|     Number of shares sold                                | 57,941                         | 365,290                                |
|     Number of shares issued in reinvestment of dividends | -                              | 361                                    |
|     Number of shares redeemed                            | (55,331)                       | (13,666)                               |
| **Net increase (decrease) in number of shares outstanding**        | **2,610**                      | **351,985**                            |

*1 Operations commenced on March 27, 2015*

| **Financial Highlights**                                                                     | *Year ended*          | *Period ended*              |
|----------------------------------------------------------------------------------------------|-----------------------|-----------------------------|
| *Selected data per share of outstanding capital stock throughout the period:*                | **November 30, 2016** | **November 30, 20151** |
| **Net asset value at beginning of period**                                                   | **$9.73**             | **$10.00**                  |
| **Income from investment operations**                                                        |
|     Net investment income                                                          | 0.06                  | 0.02                        |
|     Net loss on securities (both realized and unrealized)                          | (0.36)                | (0.28)                      |
| **Total from investment operations**                                                         | **(0.30)**            | **(0.26)**                  |
| **Less distributions**                                                                       |
|     Dividends (from net investment income)                                         | -                     | (0.01)                      |
| **Total distributions**                                                                      | **-**                 | **(0.01)**                  |
|                                                                                         |
| **Net asset value at end of period**                                                         | **$9.43**             | **$9.73**                   |
|                                                                                         |
| **Total return**                                                                             | **(3.08)%**           | **(2.60)%2**           |
|                                                                                         |
| **Ratios / supplemental data**                                                               |
| Net assets ($000), end of period                                                             | $3,343                | $3,423                      |
| Ratio of expenses to average net assets                                                      |                  |                        |
|     Before fee waivers                                                             | 1.65%                 | 1.23%3                 |
|     After fee waivers                                                              | 1.00%                 | 1.00%3                 |
|     After fee waivers and custodian fee credits                                    | 0.99%                 | 0.99%3                 |
| Ratio of net investment income after fee waivers and custodian credits to average net assets | 0.67%                 | 0.29%3                 |
| **Portfolio turnover rate**                                                                  | **48%**               | **53%2**               |
| *1 Operations commenced on March 27, 20152 Not annualized3 Annualized*        |

 

| 12 | November 30, 2016         Annual Report | *The accompanying notes are an integral part of these financial statements.* |
|----|-------------------------------------------------------------|------------------------------------------------------------------------------|

 

| Saturna Sustainable Bond Fund: Performance Summary | *(unaudited)* |
|----------------------------------------------------|---------------|

**Average Annual Returns as of November 30, 2016**

|                                | **1 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
|-------------------------------------|------------|------------|-------------|-------------------------|
| Sustainable Bond Fund (SEBFX)2 | 1.37%      | n/a        | n/a         | 1.02%                   |
| Citi WorldBIG Index                 | 2.89%      | 0.49%      | 3.25%       | n/a                     |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Comparison of any mutual fund to a market index must be made bearing in mind that the index is 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 27, 2015, to an identical amount invested in the Citi WorldBIG Index, a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed income markets. The graph shows that an investment in the Fund would have risen to $10,006 versus rising to $10,122 in the index.* |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.89%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.*

*2 Operations commenced March 27, 2015.* |

**Fund Objective**

The objectives of the Sustainable Bond Fund are current income and capital preservation.

| **Top Ten Holdings**                                |                      | **Portfolio Diversification** |
|-----------------------------------------------------|---------------------------|-------------------------------|
| **% of Total Net Assets**                           | **% of Total Net Assets** |                          |
| NextEra Energy Capital *(6.65% due 06/15/2067)*     | 5.3%                      | Financials                    | 20.8% | █ |  |
| Chubb *(6.375% due 04/15/2037)*                     | 5.2%                      | Consumer Discretionary        | 14.4% | █ |
| Mexico Bonos Desarollo *(6.50% due 06/10/2021)*     | 4.7%                      | Communications                | 13.2% | █ |
| Canadian Imperial Bank *(3.42% due 01/26/2026)*     | 4.4%                      | Technology                    | 9.4% | █ |
| Nokia *(5.375% due 05/15/2019)*                     | 4.2%                      | Foreign Government Bonds      | 8.9% | █ |
| New Zealand Government *(3.00% due 04/15/2020)*     | 4.2%                      | Health Care                   | 7.1% | █ |
| Koninklijke Philips *(3.75% due 03/15/2022)*        | 4.0%                      | Energy                        | 5.3% | █ |
| Flextronics International *(4.625% due 02/15/2020)* | 4.0%                      | Consumer Staples              | 3.9% | █ |
| BRF*(3.95% due 05/22/2023)*                         | 3.9%                      | Industrials                   | 3.8% | █ |
| Telecom Italia *(7.175% due 06/18/2019)*            | 3.9%                      | Utilities                     | 1.6% | █ |
|                                                | Asset-Backed Securities   | 1.2%                          | █ |
| Government Bond                                     | 1.1%                      | █                       |
| Mortgage-Backed Securities                          | 0.2%                      | █                       |
| Other assets (net of liabilities)                   | 9.1%                      | █                       |

 

| November 30, 2016         Annual Report | 13 |
|-------------------------------------------------------------|----|

 

| Saturna Sustainable Bond Fund: Discussion of Fund Performance | *(unaudited)* |
|---------------------------------------------------------------|---------------|

**Fiscal Year 2016**

(photos omitted)

For the fiscal period ended November 30, 2016, the Sustainable Bond Fund returned 1.37%, below its stated benchmark, the Citi World Broad Investment-Grade Bond Index (WorldBig®) which offered a return of 2.89%. On November 30, 2016, the Fund's 30-day yield was 3.79%, with an effective maturity of 3.55 years and a weighted average coupon of 6.65%. From a currency allocation perspective, the Sustainable Bond Fund was primarily invested in US dollar-denominated securities, representing 77.4% of the Fund's total assets followed by the Mexican peso at 8.0%, Canadian dollar at 7.6%, Australian dollar at 4.2%, and the Norwegian krone at 2.8%. The Fund experienced strong asset growth of over 200% since its inception. Reflecting Saturna Capital's voluntary subsidies to cap operating expenses, the Fund's effective expense ratio was an annualized 0.89%.

The Sustainable Bond Fund's principal investment strategy is to invest 80% of its assets in bonds of issuers located throughout the world, seeking companies with favorable sustainable characteristics as identified by their environmental, social, and governance (ESG) practices. Under normal conditions, the Fund invests at least 65% of its assets in bonds within the four highest grades (Aaa, Aa, A, or Baa) and may invest up to 35% in unrated and high-yield bonds. As of the fiscal period-end, the Fund invested approximately 22.4% of its total assets in below-investment grade and unrated issues as identified by Moody's, with the balance in investment grade issues, and 9.1% in cash. While the Fund focuses on US dollar-denominated issues, it is globally diversified with issuers domiciled in 16 countries. Eight countries represent over 66% of the Fund's assets.

**Factors Affecting Past Performance**

2016 was another volatile year as investors navigated a series of pronounced shifts in asset values in response to continued diverging monetary policy paths. Meanwhile, voters in England and the United States opted to break away from the political status quo.

As the US drives forward with a new president and toward monetary normalization, the US Federal Reserve is indicating increased interest rates over the upcoming year. The byproduct of accommodative monetary policies employed by foreign central banks is an abnormal environment where negative-yielding debt has become the fastest growing sub-sector of the debt market. From March 2015 to August 2016 negative-yielding notes and bonds increased from $1.9 trillion to $13.4 trillion globally. 

The Saturna Sustainable Bond Fund's strategic approach incorporates an active and evolving view on monetary policies, interest rates, global currencies, liquidity, and credit analysis, avoiding short-term distractions in favor of long-term financial objectives. 

The Fund emphasized a US dollar investment bias while "barbelling" the portfolio profile, a type of fixed-income portfolio construction that heavily weights the long and short ends of the duration spectrum while minimizing the midrange. We aim to emphasize high investment grade corporate and sovereign issues on the long end of the yield curve along with higher yielding, lower rated, yet investment grade corporate issues on the short end. This type of approach seeks to exceed the weighted-average yield of the benchmark while ensuring liquidity. Shorter duration securities create flexibility to invest into an anticipated higher yield environment as the investment notes mature.

**Looking Forward**

We expect the world to remain awash in capital causing continued asset volatility. We anticipate economic growth in the US will remain positive and will experience more inflationary price pressures. We foresee the US dollar retaining its strength relative to its trading partners. We also expect interest rates in the US to remain higher relative to interest rates in foreign markets. Lastly, we anticipate the agreement among OPEC members to restrict oil production will offer a more fiscally supportive environment for hydrocarbon-based economies. 

The diverging US monetary path will continue throughout 2017 as we expect the Federal Reserve to increase interest rates at least two times during the coming year. The rest of the world continues to offer accommodative monetary and fiscal policies aimed to spur economic growth. We expect US economic growth to be anemic, yet preferable to the continued deterioration we expect in the rest of the world. The US dollar will likely remain strong as other countries seek to spur economic growth through weakening their local currency. China's yuan devaluation can be expected to gain further attention as well influence broader global capital markets. 

| 14 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

 

| Saturna Sustainable Bond Fund: Schedule of Investments | *As of November 30, 2016* |
|--------------------------------------------------------|---------------------------|

| **Asset-Backed Securities — 1.2%** | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Country1** | **Percentage of Assets** |
|------------------------------------------|-----------------------|-----------------|------------------|-------------------|--------------------------|
|                                     |
| **Asset-Backed Securities**              |                  |
|                                     |
|     CRART 2014-3 C             | 3.61% due 06/17/2021  | $100,000        | $101,775         | United States     | 1.2%                     |
|                                     |
|                                     | **100,000**           | **101,775**     |             | **1.2%**          |
|                                     |
| **Corporate Bonds — 79.5%**        | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                     |
| **Communications**                       |                  |
|                                     |
|     America Movil2        | 6.00% due 06/09/2019  | MXN 6,000,000   | 282,489          | Mexico            | 3.3%                     |
|     Puget Sound Energy         | 6.974% due 06/01/2067 | 300,000         | 255,000          | United States     | 2.9%                     |
|     Telecom Italia             | 7.175% due 06/18/2019 | 300,000         | 334,050          | Luxembourg        | 3.9%                     |
|     Vodafone Group             | 4.375% due 03/16/2021 | 250,000         | 265,833          | United Kingdom    | 3.1%                     |
|                                     |
|                                     | **1,137,372**         |            | **13.2%**        |
|                                     |
| **Consumer Discretionary**               |                  |
|                                     |
|     Apple                      | 3.60% due 06/10/2026  | AUD 300,000     | 217,520          | United States     | 2.5%                     |
|     BMW Finance                | 2.75% due 04/25/2019  | NOK 2,000,000   | 242,702          | Netherlands       | 2.8%                     |
|     BMW US Capital             | 2.75% due 12/02/2019  | AUD 200,000     | 147,293          | United States     | 1.7%                     |
|     Nemak2                | 5.50% due 02/28/2023  | 250,000         | 245,000          | Mexico            | 2.8%                     |
|     Starbucks                  | 2.10% due 02/04/2021  | 100,000         | 99,536           | United States     | 1.2%                     |
|     Toyota Motor Credit        | 2.75% due 02/05/2028  | 100,000         | 97,201           | Japan             | 1.1%                     |
|     Toyota Motor Credit        | 3.00% due 03/20/2030  | 200,000         | 196,082          | Japan             | 2.3%                     |
|                                     |
|                                          | **1,245,334**         |            | **14.4%**        |
|                                     |
| **Consumer Staples**                     |                  |
|                                     |
|     BRF2                  | 3.95% due 05/22/2023  | 350,000         | 334,145          | Brazil            | 3.9%                     |
|                                     |
|                                     | **350,000**           | **334,145**     |             | **3.9%**          |
|                                     |
| **Energy**                               |                  |
|                                     |
|     NextEra Energy Capital     | 6.65% due 06/15/2067  | 525,000         | 462,000          | United States     | 5.3%                     |
|                                     |
|                                     | **525,000**           | **462,000**     |             | **5.3%**          |
|                                     |
| **Financials**                           |                  |
|                                     |
|     Bancolombia                | 5.95% due 06/03/2021  | 300,000         | 322,650          | Colombia          | 3.7%                     |
|     Canadian Imperial Bank     | 3.42% due 01/26/2026  | CAD 500,000     | 379,736          | Canada            | 4.4%                     |
|     Chubb                      | 6.375% due 04/15/2037 | 480,000         | 447,600          | Switzerland       | 5.2%                     |
|     MSCI2                 | 5.75% due 08/15/2025  | 250,000         | 262,500          | United States     | 3.0%                     |
|     Sun Life Financial         | 5.59% due 01/30/2023  | CAD 350,000     | 271,834          | Canada            | 3.2%                     |
|     Westpac Banking            | 4.625% due 06/01/2018 | 110,000         | 113,995          | Australia         | 1.3%                     |
|                                     |
|                                     | **1,798,315**         |            | **20.8%**        |
|                                     |
| **Health Care**                          |                  |
|                                     |
|     Koninklijke Philips        | 3.75% due 03/15/2022  | 327,000         | 343,267          | Netherlands       | 4.0%                     |
|     Sanofi                     | 4.00% due 03/29/2021  | 250,000         | 266,807          | France            | 3.1%                     |
|                                     |
|                                     | **577,000**           | **610,074**     |             | **7.1%**          |
|                                     |
| *Continued on next page.*                |

 

| *The accompanying notes are an integral part of these financial statements.* | November 30, 2016         Annual Report | 15 |
|------------------------------------------------------------------------------|-------------------------------------------------------------|----|

 

| Saturna Sustainable Bond Fund: Schedule of Investments | *As of November 30, 2016* |
|--------------------------------------------------------|---------------------------|

| **Corporate Bonds — 79.5%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Country1** | **Percentage of Assets** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|-----------------|------------------|-------------------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Industrials**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     Ingersoll-Rand                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2.625% due 05/01/2020 | $300,000        | $300,468         | United States     | 3.5%                     |
|     Pitney Bowes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 5.25% due 01/15/2037  | 32,000          | 31,980           | United States     | 0.3%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **332,000**           | **332,448**     |             | **3.8%**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Technology**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     Flextronics International                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 4.625% due 02/15/2020 | 325,000         | 342,448          | Singapore         | 4.0%                     |
|     Nokia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 5.375% due 05/15/2019 | 350,000         | 366,625          | Finland           | 4.2%                     |
|     Seagate HDD Cayman                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 3.75% due 11/15/2018  | 100,000         | 102,125          | Cayman Islands    | 1.2%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **775,000**           | **811,198**     |             | **9.4%**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Utilities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     United Utilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 4.55% due 06/19/2018  | 59,000          | 60,824           | United Kingdom    | 0.7%                     |
|     United Utilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 5.375% due 02/01/2019 | 75,000          | 78,820           | United Kingdom    | 0.9%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **134,000**           | **139,644**     |             | **1.6%**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Total Corporate Bonds**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **6,870,530**         |            | **79.5%**        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Government Bonds — 10.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Foreign Government Bonds**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     Mexico Bonos Desarollo                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 6.50% due 06/10/2021  | MXN 85,000      | 405,696          | Mexico            | 4.7%                     |
|     New Zealand Government2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 3.00% due 04/15/2020  | 500,000         | 361,506          | New Zealand       | 4.2%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **767,202**           |            | **8.9%**         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **US Government Bonds**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     United States Treasury Bond                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 1.625% due 02/15/2026 | 100,000         | 93,824           | United States     | 1.1%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **93,824**            |            | **1.1%**         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Total Government Bonds**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **861,026**           |            | **10.0%**        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Mortgage-Backed Securities — 0.2%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Country1** | **Percentage of Assets** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Mortgage-Backed Securities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     BOAMS 2004-03 4A1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 4.75% due 04/25/2034  | 18,611          | 18,690           | United States     | 0.2%                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **18,611**            | **18,690**      |             | **0.2%**          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Total investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (Cost = $8,071,723)   |                 | 7,852,021        |              | 90.9%                    |
| Other assets (net of liabilities)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  |            | 787,168          |              | 9.1%                     |
| **Total net assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  |            | **$8,639,189**   |              | **100.0%**               |
| *1 Country of domicile*

*2 Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At November 30, 2016, the aggregate value of these securities was $1,485,640, representing 17.2% of net assets.* |

 

| 16 | November 30, 2016         Annual Report | *The accompanying notes are an integral part of these financial statements.* |
|----|-------------------------------------------------------------|------------------------------------------------------------------------------|

 

| Saturna Sustainable Bond Fund: Schedule of Investments | *As of November 30, 2016* |
|--------------------------------------------------------|---------------------------|

 

| **Countries**                                                                                    | *(unaudited)* |
|--------------------------------------------------------------------------------------------------|---------------|
|                                                                                                  |
| Other assets (net of liabilities) 9.1%

*Weightings shown are a percentage of total net assets.* |

 

| **Bond Quality Diversification**                                                                                                                                                                                  | *(unaudited)* |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| **% of Total Net Assets**                                                                                                                                                                                         |          |
| Rated "Aaa"                                                                                                                                                                                                       | 5.3%          | █ |  |
| Rated "Aa1"                                                                                                                                                                                                       | 2.5%          | █ |
| Rated "Aa3"                                                                                                                                                                                                       | 3.4%          | █ |
| Rated "A1"                                                                                                                                                                                                        | 3.1%          | █ |
| Rated "A2"                                                                                                                                                                                                        | 10.3%         | █ |
| Rated "A3"                                                                                                                                                                                                        | 4.7%          | █ |
| Rated "Baa1"                                                                                                                                                                                                      | 18.3%         | █ |
| Rated "Baa2"                                                                                                                                                                                                      | 15.4%         | █ |
| Rated "Baa3"                                                                                                                                                                                                      | 5.5%          | █ |
| Rated  Ba1"                                                                                                                                                                                                       | 14.8%         | █ |
| Rated "Ba2"                                                                                                                                                                                                       | 3.0%          | █ |
| Not Rated                                                                                                                                                                                                         | 4.6%          | █ |
| Other assets (net of liabilities)                                                                                                                                                                                 | 9.1%          | █ |
| *Credit ratings are determined by Moody's Investors Service, a Nationally Recognized Statistical Rating Organization. If Moody's does not rate a particular security, that security is categorized as not rated.* |

 

| *The accompanying notes are an integral part of these financial statements.* | November 30, 2016         Annual Report | 17 |
|------------------------------------------------------------------------------|-------------------------------------------------------------|----|

### Saturna Sustainable Bond Fund

| **Statement of Assets and Liabilities**                                        |
|--------------------------------------------------------------------------------|
| *As of November 30, 2016*                                                      |
|                                                                           |
| **Assets**                                                                     |
|     Investments in securities, at value (Cost $8,071,723)            | $7,852,021 |
|     Cash                                                             | 618,896 |
|     Interest receivable                                              | 121,515 |
|     Receivable for fund shares sold                                  | 51,597 |
|     Prepaid filing and registration fees                             | 2,173 |
|     Reimbursement due from adviser                                   | 996 |
|         Total assets                                       | 8,647,198 |
| **Liabilities**                                                                |
|     Distributions payable                                            | 2,642 |
|     Accrued audit expenses                                           | 2,500 |
|     Payable for fund shares redeemed                                 | 1,379 |
|     Payable to affiliates                                            | 700 |
|     Accrued distribution fees                                        | 467 |
|     Accrued other expenses                                           | 228 |
|     Accrued trustee expenses                                         | 93 |
|         Total liabilities                                  | 8,009 |
| **Net assets**                                                                 | **$8,639,189** |
|                                                                           |
| **Analysis of net assets**                                                     |
|     Paid-in capital (unlimited shares authorized, without par value) | $8,847,131 |
|     Undistributed net investment income                              | 229 |
|     Accumulated net realized gain                                    | 13,356 |
|     Unrealized net depreciation on investments                       | (221,527) |
| **Net assets applicable to Fund shares outstanding**                           | **$8,639,189** |
|                                                                           |
| **Fund shares outstanding**                                                    | **895,200** |
|                                                                           |
| **Net asset value, offering,and redemption price per share**                   | **$9.65** |

 

| **Statement of Operations**                              |
|----------------------------------------------------------|
| *Year ended November 30, 2016*                           |
|                                                     |
| **Investment income**                                    |
|     Interest income                            | $256,618 |
|         Total investment income      | 256,618 |
| **Expenses**                                             |
|     Investment adviser fees                    | 42,239 |
|     Distribution fees                          | 19,200 |
|     Filing and registration fees               | 17,391 |
|     Printing and postage                       | 3,782 |
|     Audit fees                                 | 2,500 |
|     Chief Compliance Officer expenses          | 1,947 |
|     Trustee fees                               | 1,453 |
|     Other expenses                             | 747 |
|     Custodian fees                             | 506 |
|     Legal fees                                 | 81 |
|     Retirement plan custodial fees             | 58 |
|         Total gross expenses         | 89,904 |
|     Less adviser fees waived                   | (21,411) |
|     Less custodian fee credits                 | (506) |
|         Net expenses                 | 67,987 |
| **Net investment income**                                | **$188,631** |
|                                                     |
|                                                     |
| Net realized gain from investments and foreign currency  | $9,841 |
| Net increase in unrealized depreciation on investments   | (119,271) |
| **Net loss on investments**                              | **$(109,430)** |
|                                                     |
| **Net increase in net assets resulting from operations** | **$79,201** |

 

| 18 | November 30, 2016         Annual Report | *The accompanying notes are an integral part of these financial statements.* |
|----|-------------------------------------------------------------|------------------------------------------------------------------------------|

### Saturna Sustainable Bond Fund

| **Statements of Changes in Net Assets**                            | *Year ended November 30, 2016* | *Period ended November 31, 20151* |
|--------------------------------------------------------------------|--------------------------------|----------------------------------------|
| **Increase (decrease) in net assets from operations**              |
| **From operations**                                                |
|     Net investment income                                | $188,631                       | $63,522                                |
|     Net realized gain on investments                     | 9,841                          | 45                                     |
|     Net decrease in unrealized appreciation              | (119,271)                      | (102,256)                              |
|         Net increase (decrease) in net assets  | 79,201                         | (38,689)                               |
| **Distributions to shareowners from**                              |
|     Net investment income                                | (184,887)                      | (63,659)                               |
|         Total distributions                    | (184,887)                      | (63,659)                               |
| **Capital share transactions**                                     |
|     Proceeds from sales of shares                        | 4,258,711                      | 7,102,313                              |
|     Value of shares issued in reinvestment of dividends  | 116,029                        | 40,667                                 |
|     Cost of shares redeemed                              | (2,515,123)                    | (155,374)                              |
|         Net increase in net assets             | 1,859,617                      | 6,987,606                              |
| **Total increase in net assets**                                   | **1,753,931**                  | **6,885,258**                          |
|                                                               |
| **Net assets**                                                     |
| Beginning of period                                                | 6,885,258                      | -                                      |
| End of period                                                      | 8,639,189                      | 6,885,258                              |
|                                                               |                           |                                   |
| Undistributed net investment income                                | $229                           | $-                                     |
|                                                               |
| **Shares of the Fund sold and redeemed**                           |
|     Number of shares sold                                | 432,552                        | 717,798                                |
|     Number of shares issued in reinvestment of dividends | 11,853                         | 4,145                                  |
|     Number of shares redeemed                            | (255,297)                      | (15,851)                               |
| **Net increase in number of shares outstanding**                   | **189,108**                    | **706,092**                            |

*1 Operations commenced on March 27, 2015*

| Financial Highlights                                                                         | *Year ended*          | *Period ended1*  |
|----------------------------------------------------------------------------------------------|-----------------------|-----------------------|
| *Selected data per share of outstanding capital stock throughout each period:*               | **November 30, 2016** | **November 30, 2015** |
| **Net asset value at beginning of period**                                                   | **$9.75**             | **$10.00**            |
| **Income from investment operations**                                                        |
| Net investment income                                                                        | 0.24                  | 0.12                  |
| Net gains (loss) on securities (both realized and unrealized)                                | (0.10)                | (0.25)                |
| **Total from investment operations**                                                         | **0.14**              | **(0.13)**            |
| **Less distributions**                                                                       |
| Dividends (from net investment income)                                                       | (0.24)                | (0.12)                |
| **Total distributions**                                                                      | **(0.24)**            | **(0.12)**            |
|                                                                                         |
| **Net asset value at end of period**                                                         | **$9.65**             | **$9.75**             |
|                                                                                         |
| **Total return**                                                                             | **1.37%**             | **(1.29)%2**     |
|                                                                                         |
| **Ratios / supplemental data**                                                               |
| Net assets ($000), end of period                                                             | $8,639                | $6,885                |
| Ratio of expenses to average net assets                                                      |                  |                  |
| Before fee waivers                                                                           | 1.17%                 | 1.02%3           |
| After fee waivers                                                                            | 0.89%                 | 0.90%3           |
| After fee waivers and custodian fee credits                                                  | 0.89%                 | 0.89%3           |
| Ratio of net investment income after fee waivers custodian fee credits to average net assets | 2.46%                 | 1.92%3           |
| **Portfolio turnover rate**                                                                  | **46%**               | **4%2**          |
| *1 Operations commenced on March 27, 2015**2 Not annualized**3 Annualized*    |

 

| *The accompanying notes are an integral part of these financial statements.* | November 30, 2016         Annual Report | 19 |
|------------------------------------------------------------------------------|-------------------------------------------------------------|----|

### 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 an open-end, diversified management company under the Investment Company Act of 1940, as amended. Nine portfolio series have been created to date, two of which are covered by this annual report: Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund (the "Funds"). The Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund, and the Idaho Tax-Exempt Fund are offered through separate prospectuses, the results of which are contained in separate reports. 

Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund commenced operations on March 27, 2015.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services — Investment Companies".

**Investment risks:**

**Saturna Sustainable Equity** and **Saturna Sustainable Bond****Funds**:  The value of each Fund's shares rises and falls as the value of the securities in which the Fund invests goes up and down. Fund share prices, yields, and total returns will change with market fluctuations as well as the fortunes of the countries, industries, and companies in which the Fund invests. The Funds do not use derivatives to hedge currency, interest rate, or credit risk. 

ESG principles restrict each Fund's ability to invest in certain stocks, bonds, and market sectors, such as alcohol, tobacco, gaming, guns, and pornography. Securities are evaluated and assigned an ESG rating monthly. Ratings are dependent upon the associated ESG risks that are most pertinent to the sector in which an issuer operates. The ratings process associated with sustainable and responsible investing reduces the investable universe for each Fund, which limits opportunities and may increase the risk of loss during market declines. The adviser believes that sustainable investing may mitigate security-specific risk, but there is no guarantee that the securities favored by our investment process will perform better and may perform worse than those that are not favored.

The Funds may invest substantially in one or more sectors, which can increase volatility and exposure to issues specific to a particular sector or industry.

Foreign investing involves risks not normally associated with investing in US securities. These include fluctuations in currency exchange rates, less public information about securities, less governmental market supervision, and the lack of uniform financial, social, and political standards. Foreign investing heightens the risk of confiscatory taxation, seizure or nationalization of assets, establishment of currency controls, or adverse political or social developments that affect investments. The risks of investing in foreign securities are typically greater in less developed or emerging countries. 

Liquidity risk exists when particular investments are difficult to sell. If a Fund holds illiquid investments, its portfolio may be more difficult to value, especially in changing markets. Investments by a Fund in foreign securities and those that are thinly traded, such as lower quality issuers, and smaller companies tend to involve greater liquidity risk. If a Fund is forced to sell or unwind these investments to meet redemptions or for other cash needs, the Fund may suffer a penalty. Additionally, the market for certain investments may become illiquid under adverse market or economic conditions independent of any specific adverse changes in the conditions of a particular issuer. In such cases, the Fund, due to limitations on investments in illiquid securities and the difficulty in purchasing and selling such securities, may be unable to achieve its investment objective.

**Saturna Sustainable Bond Fund**: The risks inherent in the Saturna Sustainable Bond Fund depend primarily on the terms and quality of the obligations in its portfolio, as well as on bond market conditions. When interest rates rise, bond prices fall. When interest rates fall, bond prices go up. Bonds with longer maturities usually are more sensitive to interest rate changes than bonds with shorter maturities. The Fund entails credit risk, which is the possibility that a bond will not be able to pay interest or principal when due. If the credit quality of a bond is perceived to decline, investors will demand a higher yield, which means a lower price on that bond to compensate for the higher level of risk.

The Fund may invest a portion of its assets in securities issued by government sponsored entities such as Fannie Mae, Freddie Mac, and the Federal Home Loan Banks in the US. Foreign governments also sponsor similar entities, which may promote activities such as low-cost housing or alternative energy. The Fund may also invest in the issues of regional, state, and local governments. The terms of such issues can be complex, and there can be no assurance that a government entity will support such enterprises that encounter financial difficulty.

Issuers of high-yield securities are generally not as strong financially as those issuing higher quality securities. These issuers are more likely to encounter financial difficulties and are more vulnerable to changes in the relevant economy that could affect their ability to make interest and principal payments as expected. High-yield bonds may have low or no ratings, and may be considered "junk bonds."

Bond investments, especially mortgage-backed and asset-backed securities, are subject to the risk that borrowers will prepay the principal more quickly than expected (prepayment risk) or more slowly than expected (extension risk), which will affect the yield, average life, and price of the securities.

**NOTE 2 — Significant Accounting Policies**

The following is a summary of the significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Funds in preparation of their financial statements.

**Security valuation:**Investments in securities traded on a national securities exchange and over-the-counter securities for which sale prices are available are valued at that price. Securities for which there are no sales are valued at the latest bid price.

Debt securities are valued using bid-side valuations provided by an independent service. The service determines valuations using factors such as yields or prices of bonds of comparable quality, type of issue, coupon maturity, ratings, trading activity, and general market conditions.

| 20 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

 

| Notes To Financial Statements | *(continued)* |
|-------------------------------|---------------|

| **Funds**                                                                                                                                                | **Level 1**    | **Level 2**    | **Level 3** | **Total**      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|----------------|-------------|----------------|
| **Sustainable Equity Fund**                                                                                                                              |
| Common Stocks                                                                                                                                            |
|     Communications                                                                                                                             | $94,657        | $32,762        | $-          | $127,419       |
|     Consumer Discretionary                                                                                                                     | 568,255        | 200,714        | -           | 768,969        |
|     Consumer Staples                                                                                                                           | 134,195        | 69,984         | -           | 204,179        |
|     Financials                                                                                                                                 | 268,593        | 132,243        | -           | 400,836        |
|     Health Care                                                                                                                                | 109,938        | 120,742        | -           | 230,680        |
|     Industrials                                                                                                                                | 23,742         | 138,725        | -           | 162,467        |
|     Materials                                                                                                                                  | 68,696         | 78,409         |        | 147,105        |
|     Technology                                                                                                                                 | 811,485        | -              | -           | 811,485        |
| **Total**                                                                                                                                                | **$2,079,561** | **$773,579**   | **$-**      | **$2,853,140** |
|                                                                                                                                                     |
| **Sustainable Bond Fund**                                                                                                                                |
| Asset-Backed Securities1                                                                                                                            | $-             | $101,775       | $-          | $101,775       |
| Corporate Bonds1                                                                                                                                    | $-             | $6,870,530     | $-          | $6,870,530     |
| Government Bonds1                                                                                                                                   | $-             | $861,026       | $-          | $861,026       |
| Mortgage-Backed Securities1                                                                                                                         | $-             | $18,690        | $-          | $18,690        |
| **Total**                                                                                                                                                | **$-**         | **$7,852,021** | **$-**      | **$7,852,021** |
| *1 See Schedule of Investments for additional details**During the year ended November 30, 2016, no Fund had transfers between Level 1 and Level 2.* |

Fixed-income debt instruments, such as commercial paper, bankers' acceptances, and US Treasury Bills, with a maturity of 60 days or less are valued at amortized cost, which approximates market value. Any discount or premium is accreted or amortized on a straight-line basis until maturity. 

Foreign markets may close before the time as of which the Funds' share prices are determined. Because of this, events occurring after the close and before the determination of the Funds' share prices may have a material effect on the values of some or all of the Funds' foreign securities. To account for this, the Funds may use outside pricing services for valuation of their non-US securities.

In cases in which there is not a readily available market price, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.

Security transactions are recorded on the trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.

**Foreign currency:**Investment securities and other assets and liabilities denominated in foreign currencies are translated into US dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into US dollar amounts on the respective dates of such transactions.

The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the US dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

**Share valuation:**The net asset value ("NAV") per share of each Fund is calculated by dividing the sum of the value of the securities held by each Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for each Fund, rounded to the nearest cent. The Funds' shares are not priced or traded on days the New York Stock Exchange is closed. The NAV is the offering and redemption price per share. 

**Fair value measurements:**Accounting Standards Codification (ASC) 820 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds' investments and are summarized below.

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

Level 2 — Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

| November 30, 2016         Annual Report | 21 |
|-------------------------------------------------------------|----|

 

| Notes To Financial Statements | *(continued)* |
|-------------------------------|---------------|

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The table on page 21 is a summary of the inputs used as of November 30, 2016 in valuing the Funds' investments carried at value.

**Investment concentration:**The Funds may have deposits of cash with the custodian from time to time for one or more reasons. "Other assets (net of liabilities)" in the Funds' Schedules of Investments primarily represents cash on deposit with the custodian. Cash on deposit will vary widely over time. Accounting Standards Codification ("ASC") 825, *"Financial Instruments,"* identifies these items as a concentration of credit risk. The risk is managed by careful financial analysis and review of the custodian's operations, resources, and protections available to the Trust. This process includes evaluation of other financial institutions providing investment company custody services. 

**Federal income taxes:**The Funds intend to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareowners sufficient to relieve them from all or substantially all federal income taxes. Therefore, no federal income tax provision is required.

The Funds recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Funds' tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax year (2015) or expected to be taken in the Funds' 2016 tax returns. The Funds identify their major tax jurisdictions as US federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

**Reclassification of capital accounts:**Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. As of November 30, 2016, the reclassification of capital accounts were as follows:

|                               | **Equity Fund** | **Bond Fund** |
|------------------------------------|-----------------|---------------|
| Undistributed net investment  loss | $(3,770)        | $(3,515)      |
| Accumulated gains                  | 3,770           | 3,515         |
| Paid-in capital                    | $-              | $-            |

**Distributions to shareowners:**For the Sustainable Bond Fund, dividends to shareowners from net investment income are paid daily and distributed on the last business day of each month. For the Sustainable Equity Fund, dividends to shareowners from net investment income are payable at the end of each November. For both Funds, distributions of capital gains, if any, are made at least annually, and as required to comply with federal excise tax requirements. Distributions to shareowners are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take distributions if they total $10 or more in cash.

**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.

**Foreign taxes:**Withholding taxes on foreign dividends are paid (a portion of which may be reclaimable) or provided for in accordance with the applicable country's tax rules and rates and are disclosed in the Statement of Operations. Withholding tax reclaims are filed in certain countries to recover a portion of the amounts previously withheld. The Funds record a reclaim receivable based on a number of factors, including a jurisdiction's legal obligation to pay reclaims as well as payment history and market convention.

**Other:**Interest income is recognized on an accrual basis. Premiums on securities purchased are amortized, and discounts are accreted over the lives of the respective securities. Dividends from equity securities are recorded as income on the ex-dividend date. 

**Recent accounting pronouncement:**In May 2015, the FASB issued ASU No. 2015-07 *"Disclosure for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)."* The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Management is currently evaluating the impact these changes will have on the Fund's financial statements and related disclosures.

| 22 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

 

| Notes To Financial Statements | *(continued)* |
|-------------------------------|---------------|

**NOTE 3 — Transactions with Affiliated Persons**

Under contracts approved annually by the Trust's independent trustees, Saturna Capital Corporation provides investment advisory services and certain other administrative services required to conduct Trust business. Expenses incurred by the Trust on behalf of the Funds (e.g., legal fees) are allocated to the Funds on the basis of relative daily average net assets.  For such services, each of the Funds pays the adviser an Investment Advisory and Administrative Services Fee of 0.65% for the Sustainable Equity Fund and 0.55% for the Sustainable Bond Fund of average net assets per annum, payable monthly. In addition, the adviser has agreed to certain limits on other expenses, as described below. 

The Adviser has voluntarily undertaken to limit expenses of the Sustainable Equity Fund to 0.99%, and of the Sustainable Bond Fund to 0.89% through March 31, 2017. For the year ended November 30, 2016, the advisory fees incurred were as follows:

|                   | **Adviser Fees** | **Adviser Fees Waived** | **Expense Reimbursement** |
|------------------------|------------------|-------------------------|---------------------------|
| **Sustainable Equity** | $21,429          | $(21,429)               | ($40)                     |
| **Sustainable Bond**   | $42,239          | $(21,411)               | $-                        |

In accordance with the expense limitation noted above, for the year ended November 30, 2016, Saturna Capital waived a portion of the advisory fees of the Sustainable Equity Fund and Sustainable Bond Fund. The adviser cannot recoup previously waived fees. 

Saturna Brokerage Services, Inc. ("SBS"), a discount brokerage and subsidiary of Saturna Capital Corporation, is registered as a broker-dealer and acts as distributor. On December 19, 2014, the Funds adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act. The plan provides that the Funds will pay a fee to SBS at an annual rate of 0.25% of the average net assets of the Funds

During the year ended November 30, 2016, the Trust paid SBS the following amounts:

| **12b-1 Fees**         |
|------------------------|
| **Sustainable Equity** | $8,242 |
| **Sustainable Bond**   | $19,200 |

SBS is used to effect portfolio transactions for the Trust. SBS currently executes portfolio transactions without commission. Transactions effected through other brokers are subject to commissions payable to that broker.

Saturna Trust Company ("STC"), a subsidiary of Saturna Capital, acts as retirement plan custodian for Fund shareowners. Each Fund pays an annual fee of $10 per account for retirement plan services to Saturna Trust Company. For the year ended November 30, 2016, the Funds incurred the following amounts:

| **Retirement plan custodial fees** |
|------------------------------------|
| **Sustainable Equity**             | $456 |
| **Sustainable Bond**               | $58 |

Mr. Nicholas Kaiser serves as a trustee and president of the Trust. He is also a director and the chairman of Saturna Capital and Saturna Trust Company. Mr. Kaiser is not compensated by the Trust. For the year ended November 30, 2016, the Trust incurred compensation expenses of $29,000 which is included in $42,868 of total expenses for the independent Trustees. The Funds paid $2,212 of these total expenses.

The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who may be partially compensated by the Trust. For the year ended November 30, 2016, the Funds paid the following compensation expenses for the Chief Compliance Officer:

| **Chief Compliance Officer** |
|------------------------------|
| **Sustainable Equity**       | $989 |
| **Sustainable Bond**         | $1,947 |

On November 30, 2016, the trustees, officers, and their affiliates as a group owned 65.40% and 32.96% of the outstanding shares of Sustainable Equity Fund and Sustainable Bond Fund, respectively.

**NOTE 4 — Distributions to Shareowners**

The tax characteristics of distributions paid for the fiscal year ended November 30, 2016 and the period ended November 30, 2015 were as follows: 

|                          | **Year ended November 30, 2016** | **Period ended November 30, 2015** |
|-------------------------------|----------------------------------|------------------------------------|
| **Sustainable Equity Fund**   |
|     Ordinary income | $-                               | $3,510                             |
| **Sustainable Bond Fund**     |
|     Ordinary income | $184,887                         | $63,659                            |

 

| November 30, 2016         Annual Report | 23 |
|-------------------------------------------------------------|----|

 

| Notes To Financial Statements | *(continued)* |
|-------------------------------|---------------|

**NOTE 5 — Federal Income Taxes**

The cost basis of investments for federal income tax purposes at November 30, 2016, was as follows:

|                                           | **Sustainable Equity** | **Sustainable Bond** |
|------------------------------------------------|------------------------|----------------------|
| Cost of investments                            | $2,754,823             | $8,071,723           |
| Gross tax unrealized appreciation              | 223,769                | 60,894               |
| Gross tax unrealized depreciation              | (125,452)              | (280,596)            |
| Net tax unrealized appreciation (depreciation) | $98,317                | $(219,702)           |

As of November 30, 2016, components of distributable earnings on a tax basis were as follows:

| **Sustainable Equity**        |
|-------------------------------|
| Undistributed ordinary income | $18,207 |
| Tax accumulated earnings      | 18,207 |
| Accumulated capital losses    | (321,723) |
| Unrealized appreciation       | 98,317 |
| Other unrealized losses       | (119) |
| Total accumulated losses      | $(205,318) |

 

| **Sustainable Bond**          |
|-------------------------------|
| Undistributed ordinary income | $229 |
| Tax accumulated earnings      | 229 |
| Accumulated capital gains     | 13,356 |
| Unrealized depreciation       | (219,702) |
| Other unrealized losses       | (1,825) |
| Total accumulated losses      | $(207,942) |

At November 30, 2016, the Funds had capital loss carryforwards as follows, subject to regulation. The Registered Investment Company Modernization Act requires that the Funds use long-term and short-term loss carryforwards with unlimited expiration prior to those with an expiration. Prior to their expiration, such loss carryforwards may be used to offset future new capital gains realized for federal income tax purposes.

|                          | **Carryforward** | **Expiration** |
|-------------------------------|------------------|----------------|
| **Equity Fund**               |
| Short term loss carryforwards | $309,477         | Unlimited      |
| Long term loss carryforwards  | $12,246          | Unlimited      |

**NOTE 6 — Investments**

Investment transactions other than short-term investments for the  year ended November 30, 2016, were as follows:

|                   | **Purchases** | **Sales**  |
|------------------------|---------------|------------|
| **Sustainable Equity** | $1,510,454    | $1,283,440 |
| **Sustainable Bond**   | $4,852,057    | $3,406,359 |

**NOTE 7 — Custodian**

Under agreements in place with the Trust's custodian, Bank of New York Mellon, custody fees are reduced by credits for cash balances. Such reductions for the year ended November 30, 2016, were as follows:

| **Custodian Fee Credits** |
|---------------------------|
| **Sustainable Equity**    | $300 |
| **Sustainable Bond**      | $506 |

**NOTE 8 — Subsequent Events**

In preparing these financial statements, the Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued

The Funds declared the payment of a distribution to be paid on December 30, 2016, to all shareowners of record on December 29, 2016, as follows:

|                   | **Dividend Income** | **Short-Term Capital Gain** | **Long-Term Capital Gain** |
|------------------------|---------------------|-----------------------------|----------------------------|
| **Sustainable Equity** | $0.05345            | $-                          | $-                         |
| **Sustainable Bond**   | $0.01991            | $0.00973                    | $0.00501                   |

Dividend income distributions paid by Sustainable Bond were accrued daily.

There were no other events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.

| 24 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

### Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of TrusteesSaturna Investment Trust,

We have audited the accompanying statements of assets and liabilities of the Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund (the "Funds"), each a series of Saturna Investment Trust, including the schedules of investments, as of November 30, 2016, and the related statements of operations, the statements of changes in net assets, and financial highlights for the year then ended and for the period March 27, 2015 (commencement of operations) to November 30, 2015. These financial statements and financial highlights are the responsibility of the Funds' 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. The Funds are not required to have, nor were we engaged to perform, an audit of their 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 not for the purpose of expressing an opinion on the effectiveness of the Funds' 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, 2016, by correspondence with the custodian and brokers or by auditing procedures when replies from brokers were not received. An 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 Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund as of November 30, 2016, and the related statements of operations, the statements of changes in net assets, and financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.

Philadelphia, Pennsylvania

January 30, 2017

*/s/ Tait, Weller & Baker LLP*Tait, Weller & Baker LLP

| November 30, 2016         Annual Report | 25 |
|-------------------------------------------------------------|----|

 

| Expenses | *(unaudited)* |
|----------|---------------|

All mutual funds have operating expenses. As a Saturna Sustainable Fund shareowner, you incur ongoing costs, including management fees, distribution (or service) 12b-1 fees, and other Fund expenses such as shareowner reports (like this one). Operating expenses, which are deducted from a fund's gross earnings, directly reduce the investment return of a fund. Mutual funds (unlike other financial investments) only report their results after deduction of operating expenses

With the Saturna Sustainable Funds, unlike many mutual funds, you do not incur sales charges (loads) on purchases, reinvested dividends, or other distributions. You do not incur redemption fees or exchange fees. You may incur fees related to extra services requested by you for your account, such as bank wires. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

**Examples**

The following examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016 to November 30, 2016).

**Actual Expenses**

The first line for each Fund 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, an $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 Period" to estimate the expenses you paid on your account during this period. The Funds may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

**Hypothetical Example For Comparison Purposes**

The second line for each Fund provides information about hypothetical account values and hypothetical expenses based on each 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 period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees charged by custodians other than Saturna Trust Company (note that Saturna does not charge such fees to shareowners directly on Saturna IRAs, ESAs, or HSAs with the Saturna Sustainable Funds), and charges for extra services such as bank wires.

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

|                                        | **Beginning Account Value [June 1, 2016]** | **Ending Account Value[November 30, 2016]** | **Expenses Paid During Period** | **AnnualizedExpense Ratio** |
|---------------------------------------------|--------------------------------------------|---------------------------------------------|---------------------------------|-----------------------------|
|                                        |
| **Sustainable Equity Fund (SEEFX), Actual** | $1,000.00                                  | $1,008.60                                   | $4.97                           | 0.99%                       |
| Hypothetical (5% return before expenses)    | $1,000.00                                  | $1,020.05                                   | $5.00                           | 0.99%                       |
|                                        |
|                                        |
| **Sustainable Bond Fund (SEBFX), Actual**   | $1,000.00                                  | $1,001.80                                   | $4.39                           | 0.88%                       |
| Hypothetical (5% return before expenses)    | $1,000.00                                  | $1,020.61                                   | $4.43                           | 0.88%                       |
|                                        |

*Expenses are equal to annualized expense ratios indicated above (based on the most recent fiscal period of June 1, 2016, through November 30, 2016) multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).*

| 26 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

 

| Trustees and Officers | *(unaudited)* |
|-----------------------|---------------|

| **Name (Age) and Address** | **Position(s) Held with Trust and Number of Saturna Fund Portfolios Overseen**   | **Principal occupation(s) during past 5 years, including Directorships** | **Other Directorships held by Trustee**                                                                                                                   |
|----------------------------|----------------------------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Independent Trustees**   |
| (photo omitted)            | **John E. Love** (84)1300 N. State StreetBellingham WA 98225                     | Chairman (since 2006);Independent Trustee (since 1987);Nine              | Owner, J.E. Love Co., (agricultural equipment manufacturer)                                                                                               | None |
| (photo omitted)            | **Gary A. Goldfogel**, MD (58)1300 N. State StreetBellingham WA 98225            | Independent Trustee (since 1995);Nine                                    | Medical Examiner (pathologist)

Owner, Avocet Environmental Testing (laboratory)                                                                          | None |
| (photo omitted)            | **Herbert G. Grubel**, PhD (82)1300 N. State StreetBellingham WA 98225           | Independent Trustee (since 2005);Nine                                    | Senior Fellow, Fraser Institute; Professor (Emeritus) of Economics, Simon Fraser University

Author                                                       | Amana Mutual Funds Trust(retired 2011) |
| (photo omitted)            | **Ronald H. Fielding**, MA, MBA, CFA (67)1300 N. State StreetBellingham WA 98225 | Independent Trustee (since 2009);Thirteen                                | Director, ICI Mutual Insurance Company                                                                                                                    | Amana Mutual Funds Trust |
| **Interested Trustee**     |
| (photo omitted)            | **Nicholas F. Kaiser**, MBA, CFA  (70)1300 N. State StreetBellingham WA 98225    | President, Trustee1 (since 1990);Thirteen                           | Chairman and Director, Saturna Capital Corporation

Chairman, Director, and President, Saturna Trust Company

Former Director, Saturna Brokerage Services | Amana Mutual Funds Trust |

 

| November 30, 2016         Annual Report | 27 |
|-------------------------------------------------------------|----|

 

| Trustees and Officers | *(continued)* | *(unaudited)* |
|-----------------------|---------------|---------------|

| **Name (Age) and Address**        | **Position(s) held with Trust and Number of Saturna Fund Portfolios Overseen** | **Principal occupation(s) during past 5 years, including Directorships** | **Other Directorships held by Trustee**                                                                                                                                                                       |
|-----------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Officers Who Are Not Trustees** |
| (photo omitted)                   | **Phelps S. McIlvaine**(63)1300 N. State StreetBellingham, WA 98225            | Vice President (since 1994);N/A                                          | Vice President, Saturna Capital Corporation

Director, Vice President, and former Treasurer Saturna Brokerage Services                                                                                        | N/A |
| (photo omitted)                   | **Christopher R. Fankhauser** (44)1300 N. State StreetBellingham, WA 98225     | Treasurer1 (since 2002);N/A                                         | Chief Operations Officer, Saturna Capital Corporation

Vice President and Chief Operations Officer, Saturna Brokerage Services

Director, Vice President, and Chief Operations Officer, Saturna Trust Company | N/A |
| (photo omitted)                   | **Michael E. Lewis** (55)1300 N. State StreetBellingham, WA 98225              | Chief Compliance Officer1(since 2012);N/A                           | Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds                                                                                                                        | N/A |
| (photo omitted)                   | **Thomas R. Phillips** (56)1300 N. State StreetBellingham, WA 98225            | Secretary(since 2015);N/A                                                | Chief Legal Officer, Saturna Capital Corporation

Former Partner and Deputy General Counsel, Lord Abbett & Co. LLC                                                                                        | N/A |
| (photo omitted)                   | **Jacob A. Stewart** (36)1300 N. State StreetBellingham, WA 98225              | Anti-Money Laundering Officer1(since 2015);N/A                      | Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services 

Chief Compliance Officer, Saturna Brokerage Services

Bank Secrecy Act Officer, Saturna Trust Company                | N/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 Trust's Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds' website, www.saturnasustainable.com, includes additional information about the Trustees.

On November 30, 2016, the trustees, officers, and their affiliates as a group owned 64.50% and 33.0% of the outstanding shares of Sustainable Equity and Sustainable Bond Funds, respectively. 

During the year ended November 30, 2016, the Independent Trustees were each paid by the Trust: (1) $2,000 annual retainer plus $1,000 per board meeting attended (in person or by phone), plus reimbursement of travel expenses; (2) $250 for committee meetings; and (3) $250 per quarter for serving as chairman of the board or any committee

As of November 30, 2016, all Trustees owned shares in one or more Saturna Investment Trust Funds.

Mr. Kaiser is an Interested Trustee by reason of his positions with the Trust's adviser (Saturna Capital Corporation) and underwriter (Saturna Brokerage Services), and is the primary manager of the Saturna Sustainable Equity Fund and Sextant International Fund portfolios. He is paid by Saturna Capital a salary, plus a bonus for each month the Saturna Sustainable Equity Fund or Sextant International Fund portfolios earn a 4 or 5 star rating from Morningstar (see www.saturna.com). The officers are paid by Saturna Capital and not the Trust. As of November 30, 2016, all Saturna Capital employees listed above as officers owned shares in one or more of the Saturna Investment Trust funds, with Mr. Kaiser owning (directly or indirectly) over $10 million.

*1 Holds the same position with Amana Mutual Funds Trust*

| 28 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

### Renewal of Investment Advisory Contract

During their meeting of September 24, 2016 the Trustees of Saturna Investment Trust discussed the continuance of the Investment Advisory and Administration Agreements between each of Sustainable Equity Fund and Sustainable Bond Fund (the "Funds") and Saturna Capital Corporation ("Saturna"). In considering the renewal of the agreements with Saturna, the Trustees discussed the nature, extent, and quality of the services provided by Saturna to the Trust and each of the Funds. The Trustees considered that the Funds offer a full range of high-quality investor services. The Trustees discussed Saturna's experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, retirement plan and trust services, accounting, marketing, and distribution — all in addition to investment management.

The Trustees took into consideration Saturna's continued avoidance of significant operational and compliance problems, plus its investments in infrastructure, information management systems, personnel, training, and investor education materials, all designed to provide high quality investor services and meet investor needs. They recognized Saturna's efforts to recruit and retain increasingly qualified, experienced, and specialized staff and improve the capital base on which Saturna operates, which the Trustees believe is important to the long-term success of the Funds. They appreciate Saturna's focus on investors and its efforts to avoid potential conflicts of interest.

The Trustees considered the investment performance of each Fund, recognizing that because the Funds had commenced investment operations on March 27, 2015, each Fund had a relatively short operating history. The Trustees considered comparative information published by Morningstar Inc. ("Morningstar"), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed each Fund's performance relative to the Fund's Morningstar category for the one-year period ended August 31, 2016, noting that Sustainable Equity Fund had outperformed its Morningstar category average and Sustainable Bond Fund had underperformed its Morningstar category average during that period. The Trustees also noted the recent sustainability ratings assigned to the Funds by Morningstar. In addition, the Trustees also considered each Fund's performance ranking relative to the Fund's category selected by Lipper, Inc.

The Trustees noted the risk-averse investment style and other factors, which can affect a Fund's performance relative to the Fund's broader Morningstar categories. The Trustees also noted certain differences between a Fund and the peer funds within the relevant Morningstar category, including differences in investment strategies and asset size. The Trustees found that Saturna manages the Funds in a manner that is designed to be risk-averse and attractive to long-term investors. The Trustees discussed and considered the efforts of Saturna to make additional resources available to assist in managing the Funds. The Trustees also considered Saturna's focus on improving investment performance without incurring materially higher levels of risk.

The Trustees also considered the performance and expenses of each Fund as compared to a smaller group of funds with similar assets and investment objectives and strategies. The Trustees considered these comparative performance expense data, along with the comparative data published by Morningstar and each Fund's performance relative to its benchmark, to evaluate each Fund's performance over their relatively short operating history.

The Trustees also reviewed the fees and expenses of the Funds and considered the components of each Fund's operating expenses. The Trustees noted the steps that Saturna has undertaken to maintain competitive levels of Fund operating expenses. They noted the significant sponsorship of the Funds by Saturna evidenced, in part, by the amount of fees and expenses paid by Saturna out of its own resources (known as "revenue sharing") to unaffiliated intermediaries. Recognizing that Saturna pays certain fees and expenses that are often borne by funds, the Trustees appreciated Saturna's efforts to help make the Funds more widely available and less expensive than would otherwise be the case without Saturna's efforts.

The Trustees recognized that the Funds remain relatively small and there have not yet been opportunities to consider economies of scale. The Trustees noted that Saturna operates the Funds at considerable costs to itself.

The Trustees reviewed Saturna's financial information and discussed the issue of Saturna's profitability as related to management and administration of the Trust. They discussed the reasonableness of Saturna's profitability as part of their evaluation of whether the advisory fees bear a reasonable relationship to the mix of services provided by Saturna, including the nature, extent, and quality of such services.

The Trustees considered and compared the fees charged by Saturna to other types of accounts, including non-mutual fund advisory clients. The Trustees noted the differences between the full range of services Saturna provides to the Funds, including investment advisory services, transfer agency services, shareholder services, and other services, as compared to the investment advisory services provided to the other advisory accounts.

The Trustees considered potential benefits to Saturna's other business lines from acting as investment adviser to the Funds, but also recognized that Saturna's other business lines benefit the Funds. The Trustees also noted that there were no soft dollar arrangements and considered whether there are other potential benefits to Saturna in continuing to manage the Funds. The Trustees found that there were no material benefits other than Saturna's receipt of advisory fees and the fact that Saturna Brokerage Services, a wholly owned subsidiary of Saturna, receives distribution and shareholder services fees under Rule 12b-1, which it would not otherwise receive if Saturna did not serve as 

| November 30, 2016         Annual Report | 29 |
|-------------------------------------------------------------|----|

 

| Renewal of Investment Advisory Contract | *(continued)* |
|-----------------------------------------|---------------|

the investment manager for the Funds. The Trustees also noted that Saturna Brokerage Services voluntarily waives brokerage commissions for executing Fund portfolio transactions, resulting in lower transaction costs.

The Trustees concluded that the fees paid by the Funds to Saturna were, from an arm's-length bargaining perspective, reasonable and in the best interest of the Funds and their shareowners in light of the services provided, comparative performance, expense and advisory fee information, costs of services provided, profits to be realized, and benefits derived or to be derived by Saturna from its relationship with the Funds. Following this discussion, the Trustees unanimously agreed to renew the agreements of Sustainable Equity Fund and Sustainable Bond Fund, with Saturna Capital Corporation.

| 30 | November 30, 2016         Annual Report |
|----|-------------------------------------------------------------|

### Availability of Portfolio Information

(1) The Saturna Sustainable Funds file complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.

(2) The Funds' Forms N-Q are available on the SEC's website at www.sec.gov and at www.saturnasustainable.com.

(3) The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

(4) The Funds make a complete schedule of portfolio holdings after the end of each month available to investors at www.saturnasustainable.com.

### Availability of Proxy Voting Information

(1) A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Funds' website at  www.saturnasustainable.com; and (c) on the SEC's website at www.sec.gov.

(2) Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Funds' website at www.saturnasustainable.com; and (c) on the SEC's website at www.sec.gov. 

### Householding Policy

To reduce expenses, we may mail only one copy of the Funds' prospectus, each annual and semi-annual report, and proxy statements when necessary, to those addresses shared by two or more accounts. If you wish to receive individual and/or more copies of these documents, please call us at 1-800-728-8762 or write to us at Saturna Capital/Saturna Sustainable Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you individual copies 30 days after receiving your request. 

If you are currently receiving multiple copies and wish to receive only one copy, please call us at 1-800-728-8762 or write to us at Saturna Capital/Saturna Sustainable Funds, P.O. Box N, Bellingham, WA 98227. We will begin sending you a single copy with subsequent report mailings. 

### Privacy Statement

At Saturna Capital and Saturna Investment Trust, we understand the importance of maintaining the privacy of your financial information. We want to assure you that we protect the confidentiality of any personal information that you share with us. In addition, we do not sell information about our current or former customers.

In the course of our relationship, we gather certain nonpublic information about you, including your name, address, investment choices, and account information. We do not disclose your information to unaffiliated third parties unless it is necessary to process a transaction; service your account; deliver your account statements, shareowner reports and other information; or as required by law. When we disclose information to unaffiliated third parties, we require a contract to restrict the companies' use of customer information and from sharing or using it for any purposes other than performing the services for which they were required.

We may share information within the Saturna Capital family of companies in the course of informing you about products or services that may address your investing needs.

We maintain our own technology resources to minimize the need for any third party services, and restrict access to information within Saturna. We maintain physical, electronic, and procedural safeguards to guard your personal information. If you have any questions or concerns about the security or privacy of your information, please call us at 1-800-728-8762. 

| November 30, 2016         Annual Report | 31 |
|-------------------------------------------------------------|----|

 

|                                                                                                                           |
|--------------------------------------------------------------------------------------------------------------------------------|
| www.saturnasustainable.com                                                                                                     |
| (logo omitted)

**Saturna Capital**1300 North State StreetBellingham, WA 98225www.saturna.com1-800-728-8762                    | This report is issued for the information of the shareowners of the Funds. 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 Funds. The Saturna Sustainable  Funds are series of Saturna Investment Trust.

Saturna Brokerage Services, Distributor |
| ♻ This report is printed on paper with a minimum of 30% post-consumer fiber using soy-based inks. It is 100% recyclable. |

----

# Idaho Tax-Exempt Fund

## Annual Report

### November 30, 2016

----

***Performance Summary (as of December 31, 2016)** (unaudited)*

**Average Annual Returns***(before any taxes paid by shareowners)*

|                                                              | **1 Year** | **3 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
|-------------------------------------------------------------------|------------|------------|------------|-------------|-------------------------|
| Idaho Tax-Exempt Fund                                             | -0.60%     | 2.76%      | 2.01%      | 3.22%       | 0.67%1             |
| S&P Idaho Municipal Bond Index                                | 0.95%      | 4.94%      | 4.23%      | 4.65%       | n/a                     |
| "Muni Single State Intermediate" Category Average2 | -0.28%     | 2.93%      | 2.16%      | 3.16%       | 0.96%                   |

***Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future results.**  Current performance may be higher or lower than that stated herein. Performance current to the most recent month-end is available by calling toll-free 1-800-728-8762 or visiting www.idahotaxexemptfund.com. Average annual total returns are historical and include change in share value as well as reinvestment of dividends and capital gains, if any. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.*

***Please consider an investment's objectives, risks, charges, and expenses carefully before investing. To obtain this and other important information about the Idaho Tax-Exempt Fund in a  prospectus or summary prospectus, ask your financial advisor, visit www.idahotaxexemptfund.com, or call toll free 1-800-728-8762. Please read the prospectus or summary prospectus carefully before investing.***

***A note about risk:** See Notes to Financial Statements for a discussion of investment risks. For a more detailed discussion of the risks associated with the Fund, please see the Fund's prospectus or summary prospectus.*

*1 By regulation, the expense ratio shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different fiscal periods.*

*2**Source: Morningstar December 31, 2016.** Morningstar, Inc. is an independent fund performance monitor. Category returns are determined monthly from total returns by Morningstar, by category as determined by Morningstar. Category average expense ratios are determined by Morningstar from prospectus level data reported by funds in the category.*

| *2* | *November 30, 2016* | *Annual Report* |
|-----|---------------------|-----------------|

(logo omitted)

### *Fellow Shareowners:*

The federal income tax exemption on state and local bonds, in place for more than 100 years, faces recurring threats from multiple sources.

- In South Carolina vs. Baker (1988), the Supreme Court ruled the US Constitution permits federal taxation of municipal bond interest earned by individuals.
- In the aftermath of the Global Financial Crisis, the US Congress authorized the Build America Bond (BAB) Program to augment a compromised municipal capital market. The program was potentially a viable replacement for the municipal bond market and a real threat to the tax exemption. Had the BAB Program survived, the income tax exemption might have already lost any practical value.
- In 2010, the Simpson-Bowles Commission on Fiscal Responsibility and Reform recommended eliminating the tax exemption on new municipal bonds. 

We believe future proposals to eliminate the federal income tax exemption will follow the commission's recommendation to eliminate the tax exemption on new municipal bonds only. Outstanding bond interest payments will remain exempt and their secondary market value will hold steady relative to taxable bonds.

Today, the BAB Program is gone, the municipal bond market has recovered, and the federal income tax exemption continues. To date, no viable alternative for municipal funding exists.The municipal bond market and the federal income tax exemption are secure for now.   e do caution investors that Republican proposals for lower federal income tax rates could reduce the practical value of the exemption from income tax.

In 2016, Conning Municipal Credit Research deemed Idaho the second most creditworthy state in the nation. Idaho continues to benefit from the ongoing economic vitality of the five-state Mountain West region. Idaho has population growth, low unemployment, rising tax revenues, rising property values, a competitive business environment, and exceptionally conservative fiscal administration. The state's net pension obligation is modest, and its reserve funds stand at post-2008 highs. Idaho is not a wealthy State, and they know the value of the resources at their disposal.

Idaho continues to offer discriminating investors the opportunity to invest in high quality tax-exempt securities in an exceptionally creditworthy state.

Respectfully,

(photo omitted)

**Nicholas Kaiser,**President

(photo omitted)

**Phelps McIlvaine,**Vice President, Portfolio Manager

| *Annual Report* | *November 30, 2016* | *3* |
|-----------------|---------------------|-----|

### *Performance Summary (unaudited)*

| **Average Annual Returns (as of November 30, 2016)** |
|------------------------------------------------------|
|                                                 | **1 Year** | **5 Year** | **10 Year** | **Expense Ratio1** |
| Idaho Tax-Exempt Fund                                | -0.95% | 2.08% | 3.10% | 0.67% |
| S&P Idaho Municipal Bond Index                   | 0.83% | 4.38% | 4.56% | n/a |

**Growth of $10,000**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | *Comparison of any mutual fund to a market index must be made bearing in mind that the Index is unmanaged 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 securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2006, to an identical amount invested in the Standard & Poor's Idaho Municipal Bond Index, a broad-based index of Idaho municipal bond prices. The graph shows that an investment in the Fund would have risen to $13,565 versus $15,623 in the S&P Idaho Municipal Bond Index.* |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***Past performance does not guarantee future results.** The "Growth of $10,000" graph and "Average Annual Returns" performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.*

*1 By regulation, the expense ratio for the Fund shown in this table is as stated in the Fund's most recent prospectus, which is dated March 29, 2016, and incorporates results for the fiscal year ended November 30, 2015. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different fiscal periods.* |

Fund Objective

Idaho Tax-Exempt Fund seeks to provide income free from federal income, federal alternative minimum, and Idaho state income taxes. Preservation of capital is a secondary objective.

| Portfolio Diversification |                              | Top Ten Holdings          |
|---------------------------|-----------------------------------|---------------------------|
| **% of Total Net Assets** |                              | **% of Total Net Assets** |
| █                   | General Obligation                | 51.1%                     |  | University of Idaho Revenues *(5.00% due 04/01/2032)* | 2.8% |
| █                   | State Education                   | 12.6%                     | Twin Falls Co. ID SCD #414 Kimberly *(4.25% due 09/15/2028)* | 2.8% |
| █                   | Real Estate                       | 8.6%                      | Idaho State Building Authority Revenue*(5.00% due 09/01/2032)* | 2.5% |
| █                   | Medical/Hospitals                 | 4.8%                      | Boise City Urban Renewal Lease Revenue *(5.00% due 12/15/2031)* | 2.5% |
| █                   | Water Supply                      | 4.1%                      | Ada & Canyon Cos. ID JSD #3 Kuna *(4.00% due 08/15/2022)* | 2.4% |
| █                   | Municipal Leases                  | 3.3%                      | Idaho Housing & Finance Authority SFM *(2.75% due 07/01/2031)* | 2.4% |
| █                   | Pollution Control                 | 2.9%                      | Canyon Co. ID SCD #134 Middleton *(4.00% due 09/15/2028)* | 2.4% |
| █                   | Financial Services                | 2.9%                      | Idaho Bond Bank *(4.00% due 09/15/2032)* | 2.4% |
| █                   | Transportation                    | 2.8%                      | Boise State University ID Revenues *(5.00% due 04/01/2034)* | 2.3% |
| █                   | Educational Services              | 2.5%                      | Madison Co. ID SCD #321 Rexburg *(4.50% due 08/15/2024)* | 2.3% |
| █                   | Power Generation                  | 0.2%                      |   |
| █                   | Other assets (net of liabilities) | 4.2%                      |

 

| *4* | *November 30, 2016* | *Annual Report* |
|-----|---------------------|-----------------|

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

For the 12 months ended November 30, 2016, Idaho Tax-Exempt Fund returned -0.95%, which was slightly lower than the -0.58% average annual return of its Morningstar "Muni Single State Intermediate" category peer group. For the five years ended November 30, 2016, the Fund provided an annualized total return of 2.08%, compared to the 2.33% annualized return for the Morningstar category peer group. The Fund's operating expense ratio was a low 0.65%. For the year, the Fund's net assets rose 3% to $17.98 million. The Fund's net asset value per share declined modestly from $5.48 to $5.29. Over the one-year period, the Fund's outstanding shares increased 7% to 3.4 million.

Factors Affecting Past Performance

The US Federal Reserve Bank waited a year to increase the Federal Funds rate target, finally convinced by improving employment, home prices, car sales, and inflation. Despite falling early in the year, the five-year US Treasury yield eventually rose 0.15%, and the 10-year US Treasury yield rose 0.17%. The Personal Consumption Expenditures Index increased slightly by 1. 4% year-over-year, falling short of the Federal Reserve's current 2% target. 

The rising prominence of fiscal policies promoting lower corporate and personal income tax rates and fewer income tax exemptions triggered a characteristic price decline in tax-exempt bonds. Five-year and 10-year AAA municipal bond yields rose 0.49% and 0.44%, respectively, more than double the increase in similar maturity US Treasury notes. The Idaho Tax-Exempt Fund could not avoid this sector-wide repricing. However, Idaho municipal credit quality improved in 2016 due to higher property valuations, rising resource prices, and strong capital markets. Puerto Rico's debt restructuring negotiation remains difficult with little progress made. The Dallas Police and Fire Pension System Board of Trustees recently halted pensioner redemptions to protect the pension plan's assets. This raised investor concern about the funding status of municipal pensions elsewhere. Recent reports on the financial condition of Illinois and Chicago showed further deterioration. 

These are not concerns for bonds held by the Idaho Tax-Exempt Fund. In 2016, Conning Municipal Credit Research ranked Idaho the second most creditworthy state in the nation. Specifically, Idaho saw strong GDP and employment growth, along with rising home prices. Echoing this positive environment, Atlas Van Lines reported Idaho had the highest percentage of inbound moves in 2016. The Fiscal Times 2016 Fiscal Strength Index rated Boise tenth out of 116 US Cities with at least 200,000 residents. 

Under new Governmental Accounting Standards Board (GASB) pension accounting methodology, restated 2015 Idaho Net Pension Funding liability is $176 million compared to State Unrestricted Net Assets Available to Creditors of $1.2 billion. Idaho has the third lowest debt burden per capita in the nation, and reserve funds now hold $348 million. The State's net asset position rose for the fifth year by $777 million. Unassigned general fund balances continued to improve. 

Looking Forward

We expect to see the tax exemption of municipal bond interest to continue as the exemption is too important to the funding of public infrastructure renewal. 

The six-state Mountain West region that includes Idaho appears poised to continue its strong economic recovery. Idaho has forecast further modest gains in tax revenue for the coming year. Education spending is set to rise significantly over the next five years which will improve the credit quality of local and state education bonds. Interest coverage ratios on state agency debt backed by sales tax revenue will continue at investment grade levels. Idaho's health care spending is rising. The termination of federal reimbursements for state Medicaid expenditures under the Affordable Care Act remains a considerable risk. 

In the manager's opinion, the necessary foundation supporting the ownership of high quality tax-exempt municipal securities remains strong. The recent price declines mean investment opportunities in Idaho have now improved.

The Idaho Tax-Exempt Fund chooses not to invest in US territories such as Puerto Rico, Guam, and the US Virgin Islands to boost income at the expense of creditworthiness. The Fund does not employ derivatives or other financial engineering tools to modify returns.

For those seeking a conservative investment vehicle, the Idaho Tax-Exempt Fund offers a portfolio of high-grade issues intended to provide income exempt from federal income, federal alternative minimum, and Idaho state income taxes. In the current low interest rate environment, the Fund may purchase more carefully vetted, nonrated Idaho bonds.

| Bond Quality Diversification                                                                |
|---------------------------------------------------------------------------------------------|
|                                                                                        |
| █                                                                                     | Rated "Aaa" | 24.3% |  |
| █                                                                                     | Rated "Aa1" | 19.3% |
| █                                                                                     | Rated "Aa2" | 3.8% |
| █                                                                                     | Rated "Aa3" | 15.0% |
| █                                                                                     | Rated "A1" | 10.8% |
| █                                                                                     | Rated "A2" | 4.6% |
| █                                                                                     | Rated "A3" | 1.2% |
| █                                                                                     | Not rated | 16.8% |
| █                                                                                     | Other assets (net of liabilities) | 4.2% |
| *Based on total net assets as of November 30, 2016.*

*Source: Moody's Investors Services.* |

 

| *Annual Report* | *November 30, 2016* | *5* |
|-----------------|---------------------|-----|

 

| Schedule of Investments As of November 30, 2016                  |
|------------------------------------------------------------------|
| **Tax-Exempt Municipal Bonds — 95.8%**                     | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                                             |
| **Educational Services**                                         |   |
|                                                             |
|    Idaho State University                              | 4.00% due 04/01/2027 | $170,000 | $186,339 | 1.0% |
|    Idaho State University                              | 4.00% due 04/01/2030 | 245,000 | 262,931 | 1.5% |
|                                                             |
|                                                             | **415,000** | **449,270** | **2.5%** |
|                                                             |
| **Financial Services**                                           |   |
|                                                             |
|    Idaho Bond Bank                                     | 4.00% due 09/15/2019 | 90,000 | 94,337 | 0.5% |
|    Idaho Bond Bank                                     | 4.00% due 09/15/2032 | 405,000 | 420,536 | 2.4% |
|                                                             |
|                                                             | **495,000** | **514,873** | **2.9%** |
|                                                             |
| **General Obligation**                                           |   |
|                                                             |
|    Ada & Canyon Cos. ID JSD #2 Meridian            | 5.00% due 08/15/2032 | 325,000 | 367,237 | 2.0% |
|    Ada & Canyon Cos. ID JSD #3 Kuna                | 5.00% due 09/15/2019 | 240,000 | 251,621 | 1.4% |
|    Ada & Canyon Cos. ID JSD #3 Kuna                | 4.00% due 08/15/2022 | 400,000 | 438,776 | 2.4% |
|    Adams & Washington Cos. ID JSD #432             | 4.00% due 08/15/2019 | 100,000 | 100,608 | 0.6% |
|    Bingham Co. ID SCD #52 Snake HS                     | 4.00% due 09/01/2020 | 250,000 | 261,963 | 1.5% |
|    Bingham Co. ID SCD #52 Snake HS                     | 4.00% due 09/01/2027 | 200,000 | 209,570 | 1.2% |
|    Blaine Co. ID Series A                              | 4.05% due 08/01/2023 | 150,000 | 153,020 | 0.9% |
|    Bonneville & Bingham Cos. ID JSD #93            | 5.00% due 09/15/2029 | 250,000 | 286,900 | 1.6% |
|    Bonneville & Bingham Cos. ID JSD #93            | 4.00% due 09/15/2030 | 275,000 | 292,303 | 1.6% |
|    Bonneville & Bingham Cos. ID JSD #93            | 5.00% due 09/15/2031 | 200,000 | 228,820 | 1.3% |
|    Bonneville Co. ID SCD #91                           | 4.00% due 09/15/2026 | 50,000 | 53,982 | 0.3% |
|    Bonneville Co. ID SCD #91                           | 3.75% due 09/15/2032 | 285,000 | 294,567 | 1.6% |
|    Boundary Co. ID SCD #101                            | 4.00% due 08/15/2021 | 240,000 | 244,934 | 1.4% |
|    Canyon Co. ID SCD #134 Middleton                    | 4.00% due 09/15/2028 | 400,000 | 424,936 | 2.4% |
|    Canyon Co. ID SCD #135 Notus                        | 3.25% due 09/15/2031 | 290,000 | 290,212 | 1.6% |
|    Canyon Co. ID SCD #135 Notus                        | 3.25% due 09/15/2032 | 170,000 | 168,749 | 0.9% |
|    Canyon Co. ID SCD #139 Vallivue                     | 5.00% due 09/15/2024 | 260,000 | 298,831 | 1.7% |
|    Cassia, Oneida, Twin Falls JSCD #151                | 3.375% due 09/15/2034 | 160,000 | 149,490 | 0.8% |
|    Fremont & Madison Cos. ID JSD #215              | 4.00% due 08/15/2019 | 200,000 | 206,836 | 1.1% |
|    Fremont & Madison Cos. ID JSD #215              | 4.125% due 08/15/2024 | 130,000 | 134,636 | 0.7% |
|    Jefferson & Madison Cos. ID JSD #251 Rigby      | 4.25% due 09/01/2024 | 100,000 | 103,839 | 0.6% |
|    Kootenai Co. ID SCD #271                            | 4.00% due 09/15/2025 | 165,000 | 181,026 | 1.0% |
|    Kootenai Co. ID SCD #273                            | 4.00% due 08/15/2031 | 265,000 | 277,073 | 1.5% |
|    Kootenai-Shoshone ID Area Libraries                 | 4.25% due 08/01/2021 | 220,000 | 221,148 | 1.2% |
|    Latah Co. ID SCD #281                               | 4.00% due 08/15/2028 | 200,000 | 220,848 | 1.2% |
|    Latah Co. ID SCD #281                               | 4.00% due 08/15/2027 | 100,000 | 111,145 | 0.6% |
|    Latah, Nez Perce, & Clearwater Cos. ID JSD #283 | 4.50% due 08/15/2027 | 190,000 | 194,731 | 1.1% |
|    Madison Co. ID SCD #321 Rexburg                     | 4.50% due 08/15/2024 | 410,000 | 412,878 | 2.3% |
|    Madison Co. ID SCD #321 Rexburg                     | 4.50% due 08/15/2026 | 250,000 | 251,755 | 1.4% |
|     Owyhee & Elmore Cos. ID JSD #365               | 4.00% due 08/15/2027 | 350,000 | 359,807 | 2.0% |
|    Twin Falls & Gooding Cos. JSD #412              | 4.125% due 09/01/2023 | 100,000 | 110,083 | 0.6% |
|    Twin Falls Co. ID SCD #411                          | 4.00% due 09/15/2027 | 170,000 | 183,670 | 1.0% |
|    Twin Falls Co. ID SCD #411                          | 4.25% due 09/15/2030 | 300,000 | 322,596 | 1.8% |
|    Twin Falls Co. ID SCD #411                          | 4.75% due 09/15/2039 | 200,000 | 216,600 | 1.2% |
|    Twin Falls Co. ID SCD #411 Series A                 | 4.25% due 09/15/2031 | 100,000 | 107,104 | 0.6% |
|    Twin Falls Co. ID SCD #414 Kimberly                 | 4.25% due 09/15/2028 | 445,000 | 498,863 | 2.8% |
|    Twin Falls Co. ID SCD #414 Kimberly                 | 5.00% due 09/15/2031 | 300,000 | 354,411 | 2.0% |
|    Valley & Adams Cos. ID JSD #421                 | 3.00% due 08/01/2026 | 220,000 | 217,265 | 1.2% |
|                                                             |
|                                                             | **8,660,000** | **9,202,833** | **51.1%** |
|                                                             |
| **Medical/Hospitals**                                            |   |
|                                                             |
|    Idaho Health Facility Authority Revenue             | 6.75% due 11/01/2037 | 200,000 | 216,964 | 1.2% |
|    Idaho Health Facility Trinity Health Group          | 3.25% due 12/01/2028 | 300,000 | 293,571 | 1.7% |
|                                                             |
| *Continued on next page.*                                        |

 

| *6* | *November 30, 2016* | *Annual Report* | *The accompanying notes are an integral part of these financial statements.* |
|-----|---------------------|-----------------|------------------------------------------------------------------------------|

 

| Schedule of Investments                                 |
|---------------------------------------------------------|
| **Tax-Exempt Municipal Bonds — 95.8%**            | **Coupon / Maturity** | **Face Amount** | **Market Value** | **Percentage of Assets** |
|                                                    |
| **Medical/Hospitals**                                   |   |
|                                                    |
|    Idaho Health Facility Trinity Health Group | 6.00% due 12/01/2023 | $200,000 | $218,272 | 1.2% |
|    Idaho Health Facility Trinity Health Group | 6.25% due 12/01/2033 | 115,000 | 126,069 | 0.7% |
|                                                    |
|                                                    | **815,000** | **854,876** | **4.8%** |
|                                                    |
| **Municipal Leases**                                    |   |
|                                                    |
|    Boise City Urban Renewal Lease Revenue     | 5.00% due 12/15/2031 | 400,000 | 441,116 | 2.5% |
|    Nez Perce Co. ID COPS                      | 4.50% due 02/01/2021 | 150,000 | 150,706 | 0.8% |
|                                                    |
|                                                    | **550,000** | **591,822** | **3.3%** |
|                                                    |
| **Pollution Control**                                   |   |
|                                                    |
|    Caldwell ID Sewer Revenue                  | 4.50% due 09/01/2019 | 100,000 | 107,683 | 0.6% |
|    Idaho Bond Bank Authority                  | 4.30% due 09/01/2022 | 135,000 | 135,273 | 0.7% |
|    Idaho Bond Bank Authority                  | 4.125% due 09/15/2023 | 75,000 | 76,686 | 0.4% |
|    Moscow ID Sewer Revenue                    | 4.45% due 05/01/2028 | 200,000 | 207,320 | 1.2% |
|                                                    |
|                                                    | **510,000** | **526,962** | **2.9%** |
|                                                    |
| **Power Generation**                                    |   |
|                                                    |
|    Idaho Falls ID Electric Revenue            | 6.75% due 04/01/2019 | 40,000 | 41,692 | 0.2% |
|                                                    |
|                                                    | **40,000** | **41,692** | **0.2%** |
|                                                    |
| **Real Estate**                                         |   |
|                                                    |
|    Boise City Urban Renewal Agency            | 5.00% due 12/15/2032 | 300,000 | 328,995 | 1.9% |
|    Idaho Housing & Finance Authority SFM  | 2.75% due 07/01/2031 | 500,000 | 436,725 | 2.4% |
|    Idaho State Building Authority Revenue     | 5.00% due 09/01/2031 | 200,000 | 228,062 | 1.3% |
|    Idaho State Building Authority Revenue     | 5.00% due 09/01/2032 | 400,000 | 455,664 | 2.5% |
|    Post Falls ID LID SPA                      | 5.00% due 05/01/2021 | 90,000 | 90,008 | 0.5% |
|                                                    |
|                                                    | **1,490,000** | **1,539,454** | **8.6%** |
|                                                    |
| **State Education**                                     |   |
|                                                    |
|    Boise State University ID Revenues         | 4.50% due 04/01/2027 | 250,000 | 252,885 | 1.4% |
|    Boise State University ID Revenue          | 5.00% due 04/01/2032 | 160,000 | 181,942 | 1.0% |
|    Boise State University ID Revenues         | 5.00% due 04/01/2034 | 385,000 | 415,815 | 2.3% |
|    Idaho State University Revenues            | 3.00% due 04/01/2032 | 160,000 | 145,933 | 0.8% |
|    Idaho State University Revenues            | 3.00% due 04/01/2031 | 250,000 | 230,898 | 1.3% |
|    North Idaho College Dormitory Revenues     | 4.00% due 11/01/2030 | 285,000 | 300,504 | 1.7% |
|    University of Idaho Revenues               | 5.00% due 04/01/2032 | 455,000 | 503,212 | 2.8% |
|    University of Idaho Revenues               | 5.00% due 04/01/2028 | 225,000 | 245,070 | 1.3% |
|                                                    |
|                                                    | **2,170,000** | **2,276,259** | **12.6%** |
|                                                    |
| **Transportation**                                      |   |
|                                                    |
|    Boise ID Airport Parking Facility Revenue  | 3.00% due 09/01/2028 | 210,000 | 196,467 | 1.1% |
|    Idaho Housing & Finance Association    | 5.00% due 07/15/2027 | 50,000 | 53,876 | 0.3% |
|    Idaho Housing & Finance Association    | 4.60% due 07/15/2023 | 250,000 | 261,755 | 1.4% |
|                                                    |
|                                                    | **510,000** | **512,098** | **2.8%** |
|                                                    |
| **Water Supply**                                        |   |
|                                                    |
|    Chubbuck ID Water Revenue                  | 4.00% due 09/01/2025 | 155,000 | 165,253 | 0.9% |
|    Idaho Bond Bank Authority                  | 4.00% due 09/15/2024 | 100,000 | 102,097 | 0.6% |
|    Pocatello ID Water Revenue                 | 4.75% due 02/01/2026 | 350,000 | 363,059 | 2.0% |
|    Pocatello ID Water Revenue                 | 4.50% due 02/01/2024 | 100,000 | 103,469 | 0.6% |
|                                                    |
|                                                    | **705,000** | **733,878** | **4.1%** |
|                                                    |
| Total investments                                       | (Cost = $17,343,775) | $16,360,000 | 17,244,017 | 95.8% |
| Other assets (net of liabilities)                       |   |   | 753,052 | 4.2% |
| **Total net assets**                                    |   |   | **$17,997,069** | **100.0%** |
|                                                         |

 

| *The accompanying notes are an integral part of these financial statements.* | *Annual Report* | *November 30, 2016* | *7* |
|------------------------------------------------------------------------------|-----------------|---------------------|-----|

 

| **Statement of Assets and Liabilities**                                                   |
|-------------------------------------------------------------------------------------------|
| *As of November 30, 2016*                                                                 |
|                                                                                      |
| **Assets**                                                                                |
|     Investments in securities, at value    (Cost $17,343,775)	     | $17,244,017 |
|    Cash                                                                         | 611,289 |
|    Interest receivable                                                          | 187,068 |
|    Receivable for fund shares sold                                              | 2,500 |
|    Insurance reserve premium                                                    | 801 |
|        Total assets                                                   | 18,045,675 |
| **Liabilities**                                                                           |
|    Accrued audit expenses                                                       | 11,749 |
|    Payable for fund shares redeemed                                             | 13,559 |
|    Payable to affilliates                                                       | 8,276 |
|    Accrued trustee expenses                                                     | 6,017 |
|    Distributions payable                                                        | 5,858 |
|    Accrued other expenses                                                       | 3,147 |
|        Total liabilities                                              | 48,606 |
| **Net assets**                                                                            | **$17,997,069** |
|                                                                                      |
| **Analysis of net assets**                                                                |
|    Paid-in capital (unlimited shares authorized,   without par value) | $18,093,776 |
|    Undistributed tax-exempt income                                              | 3,051 |
|    Unrealized net depreciation on investments                                   | (99,758) |
| **Net assets applicable to Fund shares outstanding**                                      | **$17,997,069** |
|                                                                                      |
| **Fund shares outstanding**                                                               | **3,401,741** |
|                                                                                      |
| **Net asset value, offering and redemption price per share**                              | **$5.29** |

 

| **Statement of Operations**                              |
|----------------------------------------------------------|
| *Year ended November 30, 2016*                           |
|                                                     |
| **Investment income**                                    |
|    Interest income                             | $575,812 |
|        Total investment income       | 575,812 |
| **Expenses**                                             |
|    Investment adviser fees                     | 90,140 |
|    Audit fees                                  | 11,749 |
|    Chief Compliance Officer expenses           | 4,849 |
|    Trustee fees                                | 4,065 |
|    Other expenses                              | 2,326 |
|    Filing and registration fees                | 2,161 |
|    Transfer agent fees                         | 2,123 |
|    Printing and postage                        | 1,689 |
|    Custodian fees                              | 861 |
|    Legal fees                                  | 328 |
|    Retirement plan custodial fees              | 37 |
|        Total gross expenses          | 120,328 |
|    Less transfer agent fees waived             | (2,123) |
|    Less custodian fee credits                  | (861) |
|         Net expenses                 | 117,344 |
| **Net investment income**                                | **$458,468** |
|                                                     |
|                                                     |
| Net realized gain from investments                       | $3,909 |
| Net decrease in unrealized appreciation on investments   | (650,064) |
| **Net loss on investments**                              | **$(646,155)** |
|                                                     |
| **Net decrease in net assets resulting from operations** | **$(187,687)** |

 

| *8* | *November 30, 2016* | *Annual Report* | *The accompanying notes are an integral part of these financial statements.* |
|-----|---------------------|-----------------|------------------------------------------------------------------------------|

 

| **Statements of Changes of Net Assets**                           | *Year ended November 30, 2016* | *Year ended November 30, 2015* |
|-------------------------------------------------------------------|--------------------------------|--------------------------------|
| **Increase (decrease) in net assets from operations**             |
| **From operations**                                               |
|    Net investment income                                | $458,468                       | $467,096                       |
|    Net realized gain on investment                      | 3,909                          | 13,648                         |
|    Net decrease in unrealized appreciation              | (650,064)                      | (114,439)                      |
|        Net increase (decrease) in net assets  | (187,687)                      | 366,305                        |
| **Distributions to shareholders from**                            |
|    Net investment income                                | (458,714)                      | (467,334)                      |
|     Capital gains distributions                         | (4,857)                        | (12,700)                       |
|        Net increase in net assets             | (463,571)                      | (480,034)                      |
| **Capital share transactions**                                    |
|    Proceeds from sales of shares                        | 1,730,524                      | 3,106,181                      |
|    Value of shares issued in reinvestment of dividends  | 396,892                        | 403,877                        |
|     Cost of shares redeemed                             | (899,482)                      | (2,696,560)                    |
|        Net increase in net assets             | 1,227,934                      | 813,498                        |
| **Total increase in net assets**                                  | **576,676**                    | **699,769**                    |
|                                                              |
| **Net assets**                                                    |
| Beginning of year                                                 | 17,420,393                     | 16,720,624                     |
| End of year                                                       | 17,997,069                     | 17,420,393                     |
|                                                              |
| Undistributed tax-exempt income                                   | $3,051                         | $3,297                         |
|                                                              |
| **Shares of the Fund sold and redeemed**                          |
|     Number of shares sold                               | 312,922                        | 565,440                        |
|    Number of shares issued in reinvestment of dividends | 71,952                         | 73,466                         |
|    Number of shares redeemed                            | (162,472)                      | (492,192)                      |
| **Net increase in number of shares outstanding**                  | **222,402**                    | **146,714**                    |

 

| **Financial Highlights**                                                                    | *For the year ended November 30,* |
|---------------------------------------------------------------------------------------------|-----------------------------------|
| *Selected data per share of outstanding capital stock throughout each year:*                | **2016**                          | **2015** | **2014** | **2013** | **2012** |
| **Net asset value at beginning of year**                                                    | **$5.48**                         | **$5.51** | **$5.36** | **$5.68** | **$5.51** |
| **Income from investment operations**                                                       |
|    Net investment income                                                          | 0.14                              | 0.15 | 0.16 | 0.16 | 0.16 |
|    Net gains (losses) on securities (both realized and unrealized)                | (0.19)                            | (0.03) | 0.15 | (0.31) | 0.18 |
| **Total from investment operations**                                                        | **(0.05)**                        | **0.12** | **0.31** | **(0.15)** | **0.34** |
| **Less distributions**                                                                      |
|    Dividends (from net investment income)                                         | (0.14)                            | (0.15) | (0.16) | (0.16) | (0.16) |
|    Distributions (from capital gains)                                             | 0.001                             | 0.001 | 0.001 | (0.01) | (0.01) |
| **Total distributions**                                                                     | **(0.14)**                        | **(0.15)** | **(0.16)** | **(0.17)** | **(0.17)** |
|    Paid-in capital from early redemption fees                                     | n/a                               | n/a | n/a | - | - |
|                                                                                             |
| **Net asset value at end of year**                                                          | **$5.29**                         | **$5.48** | **$5.51** | **$5.36** | **$5.68** |
|                                                                                             |
| **Total return**                                                                            | **(0.95)%**                       | **2.21%** | **5.83%** | **(2.70)%** | **6.33%** |
|                                                                                             |
| **Ratios / supplemental data**                                                              |
| Net assets ($000), end of year                                                              | $17,997                           | $17,420 | $16,721 | $15,492 | $16,516 |
| Ratio of expenses to average net assets                                                     |
|    Before transfer agent fee waiver and custodian fee credits                     | 0.67%                             | 0.67% | 0.65% | 0.66% | 0.62% |
|    After transfer agent fee waiver                                                | 0.66%                             | 0.66% | 0.63% | 0.64% | n/a |
|    After transfer agent fee waiver and custodian fee credits                      | 0.65%                             | 0.66% | 0.63% | 0.64% | 0.62% |
| Ratio of net investment income after fee waiver and custodian credits to average net assets | 2.54%                             | 2.66% | 2.85% | 2.88% | 2.89% |
| **Portfolio turnover rate**                                                                 | **15%**                           | **7%** | **5%** | **9%** | **12%** |
| *1 Amount is less than $0.01*                                                          |

 

| *The accompanying notes are an integral part of these financial statements.* | *Annual Report* | *November 30, 2016* | *9* |
|------------------------------------------------------------------------------|-----------------|---------------------|-----|

### *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 an open-end, diversified management company under the Investment Company Act of 1940, as amended. In addition to Idaho Tax-Exempt Fund (the "Fund"), eight portfolios have been created to date: Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund (each, a "Fund", and collectively, the "Funds"). The other eight portfolios are distributed through separate prospectuses and the results of those funds are contained in separate reports.

The Idaho Tax-Exempt Fund was first authorized to sell shares of beneficial interest on September 4, 1987. 

The Fund is an investment company and accordingly follows the investment accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 "Financial Services — Investment Companies."

**Investment risks:**

The value of Fund shares rises and falls as the value of the bonds in which the Fund invests goes up and down. The risks inherent in the Fund depend primarily on the terms and quality of the obligations in the Fund's portfolio, as well as on market conditions. When interest rates rise, bond prices fall. When interest rates fall, bond prices go up. Bonds with longer maturities, such as those held by the Fund, usually are more sensitive to interest rate changes than bonds with shorter maturities. Only consider investing in the Fund if you are willing to accept the risk that you may lose money.

The Fund entails credit risk, which is the possibility that a bond will not be able to pay interest or principal when due. If the credit quality of a bond is perceived to decline, investors will demand a higher yield, which means a lower price on that bond to compensate for the higher level of risk. If a security held by the Fund defaults on payment of interest or principal, the Fund's income, ability to preserve capital, and liquidity would all be adversely affected.

Fund investments are susceptible to factors adversely affecting Idaho, such as political, economic, and financial trends unique to this relatively small state. Investing only in Idaho bonds means that the Fund's investments are more concentrated than other mutual funds, and relatively few bond price changes may lead to underperformance compared to investments selected in greater number and/or from a wider universe.

The Fund is vulnerable to income tax rate changes, either at the Idaho or federal level, since part of municipal securities' value is derived from the recipient's ability to exclude interest payments from taxation.

**Note 2 — Significant Accounting Policies**

The following is a summary of the significant accounting policies, in conformity with accounting principles generally accepted in the United States of America, which are consistently followed by the Fund in the preparation of its financial statements.

**Security valuation:**

Debt securities are valued using bid-side valuations provided by an independent service. The service determines valuations using factors such as yields or prices of bonds of comparable quality, type of issue, coupon maturity, ratings, trading activity, and general market conditions. In the absence of a valuation from an independent service for a security, a fair value for such security is determined in good faith by or under the direction of the Board of Trustees.

Security transactions are recorded on trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis. 

**Share valuation:**

The net asset value ("NAV") per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding for the Fund, rounded to the nearest cent. The Fund's shares are not priced or traded on days the New York Stock Exchange is closed. The NAV is the offering and redemption price per share.

The Trustees have adopted certain policies and procedures with respect to frequent trading of Fund shares. The Fund is intended for long-term investment and does not permit rapid trading of its shares. The Fund cannot always identify all intermediaries, or detect or prevent trading that violates the Frequent Trading Policy through intermediaries or omnibus accounts. 

**Fair value measurements:**

Accounting Standards Codification (ASC) 820 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Fund's own market assumptions (unobservable inputs). These inputs are used in determining  the value of the Fund's investments and are summarized below.

> 
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

Level 2 – Observable inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

| *10* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

### *Notes To Financial Statements (continued)*

| **Fair Value Inputs** | **Level 1** | **Level 2**     | **Level 3** | **Total**       |
|-----------------------|-------------|-----------------|-------------|-----------------|
| Municipal Bonds1      | $-          | $17,244,017     | $-          | $17,244,017     |
| **Total Assets**      | **$-**      | **$17,244,017** | **$-**      | **$17,244,017** |

*1See Schedule of Investments for industry breakout.*

*During the period ended November 30, 2016, no Fund had transfers between Level 1 and Level 2. Idaho Tax-Exempt Fund transferred securities from level 3 to level 2 due to the securities being priced using other observable inputs supported by an independent pricing service.*

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

| **Level 3 Roll-Forward Municipal Securities** |
|-----------------------------------------------|
| Beginning balance                             | $492,190 |
| Total unrealized loss                         | (11,617) |
| Maturity/call                                 | (160,000) |
| Transfers in to and/or out of Level 3         | (320,573) |
| **Ending balance**                            | **$-** |

*The Fund recognizes transfers as of the end of the reporting period.*

**Income taxes:**

The Fund intends to comply with the requirements of the Internal Revenue Code necessary to qualify as a regulated investment company and to make the requisite distributions of income and capital gains to its shareowners sufficient to relieve it from all or substantially all federal income taxes. As the Fund intends to meet requirements for tax-exempt income dividends, and the requirements of the Idaho Department of Revenue for income dividends exempt from Idaho state income tax, no income tax provisions are required.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Management has analyzed the Fund's tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2013 — 2015), or expected to be taken in the Fund's 2016 tax return. The Fund identifies its major tax jurisdiction as US federal and foreign jurisdictions where the Fund makes significant investments; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. 

**Reclassification of capital accounts:**

Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.

| Undistributed tax-exempt income | $- |
|---------------------------------|----|
| Paid-in capital                 | $- |

**Distributions to shareowners:**

The Fund's dividends to shareowners from net investment income are paid daily and distributed on the last business day of each month.

Distributions of capital gains, if any, are made at least annually and as required to comply with federal excise tax requirements. Distributions to shareowners are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take distributions in cash if they total $10 or more. 

**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 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.

Interest income is recognized on an accrual basis. Premiums on securities purchased are amortized and discounts are accreted over the lives of the respective securities.

**Recent accounting pronouncement:**

In May 2015, the FASB issued ASU No. 2015-07 "Disclosure for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)."  The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Management is currently evaluating the impact these changes will have on the Fund's financial statements and related disclosures.

| *Annual Report* | *November 30, 2016* | *11* |
|-----------------|---------------------|------|

### *Notes To Financial Statements (continued)*

**Note 3 — Transactions with Affiliated Persons**

Under a contract approved by shareowners on September 28, 1995 and reviewed annually by the Board of Trustees, Saturna Capital Corporation provides investment advisory services and certain other administrative and distribution services to conduct the Fund's business. For such services, the Fund pays an annual fee equal to 0.50% of its average daily net assets. For the fiscal year ended November 30, 2016, the Fund incurred advisory fee expenses of  $90,140. Expenses incurred by the Trust on behalf of the Fund (e.g., legal fees) are allocated to the Fund and the other Funds of the Trust on the basis of relative daily average net assets.

Saturna Capital also acts as transfer agent for the Fund, for which it did not receive any compensation during the fiscal year ended November 30, 2016. Saturna Capital has voluntarily elected to waive the transfer agent fee through November 30, 2017 to reduce the Fund's operating expenses. Such fees, had they been charged, would have totaled  $2,123.

Saturna Brokerage Services, Inc. ("SBS"), a discount brokerage and subsidiary of Saturna Capital, is registered as a broker-dealer and acts as distributor for the Fund. 

Saturna Trust Company ("STC"), a subsidiary of Saturna Capital, acts as a retirement plan custodian for Fund shareowners. For the fiscal year ended November 30, 2016, the Fund incurred retirement plan custodial fees of $37.

Mr. Nicholas Kaiser serves as a trustee and president of the Trust. He is also a director and the chairman of Saturna Capital and Saturna Trust Company. Mr Kaiser is not compensated by the Trust. For the fiscal year ended November 30, 2016, the Trust incurred compensation expenses of $29,000 which is included in $42,867 of total expenses for the independent Trustees. Idaho Tax-Exempt Fund paid $4,065 of these total expenses.

The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who is partially compensated by the Trust. For the fiscal year ended November 30, 2016, the Fund paid  $4,849 in compensation for such services.

On November 30, 2016, the trustees, officers, and their immediate families as a group directly or indirectly owned 10.68% of the outstanding shares of the Fund. 

**Note 4 — Distributions to Shareowners**

The tax characteristics of distributions paid during the fiscal year ended November 30, 2016, and the fiscal year ended November 30, 2015, were as follows:

|               | **November 30, 2016** | **November 30, 2015** |
|--------------------|-----------------------|-----------------------|
| Tax-exempt income  | $458,714              | $467,334              |
| Capital gain1 | $4,857                | $12,700               |

*1 Long-Term Capital Gain dividend designated pursuant to Section 852(b)(3) of the Internal Revenue Code.*

**Note 5 — Federal Income Taxes**

The cost basis of investments for federal income tax purposes at November 30, 2016 was as follows:

| Cost of investments           | $17,343,775 |
|-------------------------------|-------------|
| Gross unrealized appreciation | 298,960     |
| Gross unrealized depreciation | (398,718)   |
| Net unrealized depreciation   | $(99,758)   |

As of November 30, 2016, the components of distributable earnings on a tax basis were as follows:

| Undistributed tax-exempt income | $3,051    |
|---------------------------------|-----------|
| Tax accumulated earnings        | 3,051     |
| Unrealized depreciation         | (99,758)  |
| Total accumulated losses        | $(96,707) |

**Note 6 — Investments**

During the fiscal year ended November 30, 2016, the Fund purchased   $3,697,785 of securities and sold/matured $2,615,000 of securities.

**Note 7 — Custodian**

Under the agreement in place with Bank of  New York Mellon, custody fees are reduced by credits for cash balances. Such reduction for the fiscal year ended November 30, 2016, amounted to $861.

**Note 8 — Subsequent Events**

In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions during the period that materially impacted the amounts or disclosures in the Fund's financial statements.

| *12* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

### *Report of Independent Registered Public Accounting Firm*

To the Shareholders and Board of TrusteesSaturna Investment Trust,

We have audited the accompanying statements of assets and liabilities of Idaho Tax-Exempt Fund, a series of the Saturna Investment Trust (the "Trust"), including the schedule of investments as of November 30, 2016, and the related statement of operations for the year then ended, and the statements of 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. 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 audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its 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 not for the purpose 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, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of November 30, 2016, by correspondence with the custodian. 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, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its 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.

Philadelphia, Pennsylvania

January 30, 2017

*/s/ Tait, Weller & Baker LLP*Tait, Weller & Baker LLP

| *Annual Report* | *November 30, 2016* | *13* |
|-----------------|---------------------|------|

### *Expenses 	(unaudited)*

All mutual funds have operating expenses. As an Idaho Tax-Exempt Fund shareowner, you incur ongoing costs, including management fees and other fund expenses such as shareowner reports (like this one). Operating expenses, which are deducted from a fund's gross earnings, directly reduce the investment return of a fund. Mutual funds (unlike other financial investments) only report their results after deduction of operating expenses. 

With the Idaho Tax-Exempt Fund, unlike many mutual funds, you do not incur sales charges (loads) on purchases, reinvested dividends, or other distributions. You do not incur redemption fees or exchange fees. You may incur fees related to extra services requested by you for your account, such as bank wires. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

**Example**

The following example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2016, to November 30, 2016).

**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, an $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 Period" to estimate the expenses you paid on your account during this period. The Fund may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

**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 period. You may use this information to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as charges for extra services like 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 charge any such transactional costs). Therefore, the "Hypothetical" 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 [June 1, 2016]** | **Ending Account Value [November 30, 2016]** | **Expenses Paid During Period1** |
|------------------------------------------|--------------------------------------------|----------------------------------------------|---------------------------------------|
| Actual                                   | $1,000.00                                  | $966.70                                      | $3.18                                 |
| Hypothetical (5% return before expenses) | $1,000.00                                  | $1,021.76                                    | $3.27                                 |

*1 Expenses are equal to Idaho Tax-Exempt Bond Fund's annualized expense ratio of 0.65% (based on the most recent semi-annual period of June 1, 2016 through November 30, 2016) multiplied by the average account value over the period multiplied by 183/366 (to reflect the one-half year period).*

| *14* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

 

| **Trustees and Officers**  | *(unaudited)*                                                                    |
|----------------------------|----------------------------------------------------------------------------------|
| **Name (Age) and Address** | **Position(s) Held with Trust and Number of Saturna FundPortfolios Overseen**    | **Principal occupation(s) during past 5 years, including Directorships** | **Other directorships held by Trustee** |
| **Independent Trustees**   |
| (photo omitted)            | **John E. Love** (84)1300 N. State StreetBellingham WA 98225                     | Chairman (since 2006);Independent Trustee (since 1987);Nine | Owner, J.E. Love Co., (agricultural equipment manufacturer) | None |
| (photo omitted)            | **Gary A. Goldfogel**, MD (58)1300 N. State StreetBellingham WA 98225            | Independent Trustee (since 1995);Nine | Medical Examiner (pathologist);

Owner, Avocet Environmental Testing (laboratory) | None |
| (photo omitted)            | **Herbert G. Grubel**, PhD (82)1300 N. State StreetBellingham WA 98225           | Independent Trustee (since 2005);Nine | Senior Fellow, Fraser Institute; Professor (Emeritus) of Economics, Simon Fraser University;

Author | Amana Mutual Funds Trust(retired 2011) |
| (photo omitted)            | **Ronald H. Fielding**, MA, MBA, CFA (66)1300 N. State StreetBellingham WA 98225 | Independent Trustee (since 2009);Thirteen | Director, ICI Mutual Insurance Company | Amana Mutual Funds Trust |
| **Interested Trustee**     |
| (photo omitted)            | **Nicholas F. Kaiser**, MBA, CFA (70)1300 N. State StreetBellingham WA 98225     | President, Trustee1 (since 1990);Thirteen | Chairman and Director, Saturna Capital Corporation;

Chairman, Director, and President, Saturna Trust Company

Former Director, Saturna Brokerage Services | Amana Mutual Funds Trust |

 

| *Annual Report* | *November 30, 2016* | *15* |
|-----------------|---------------------|------|

 

| **Trustees and Officers**         | *(unaudited)*                                                                 |
|-----------------------------------|-------------------------------------------------------------------------------|
| **Name (Age) and Address**        | **Position(s) Held with Trust and Number of Saturna FundPortfolios Overseen** | **Principal occupation(s) during past 5 years, including Directorships** | **Other directorships held by Trustee** |
| **Officers Who Are Not Trustees** |
| (photo omitted)                   | **Phelps S. McIlvaine**(63)1300 N. State StreetBellingham, WA 98225           | Vice President (since 1994);N/A | Vice President, Saturna Capital Corporation

Director, Vice President, and former Treasurer Saturna Brokerage Services | N/A |
| (photo omitted)                   | **Christopher R. Fankhauser** (44)1300 N. State StreetBellingham, WA 98225    | Treasurer1 (since 2002);N/A | Chief Operations Officer, Saturna Capital Corporation

Vice President and Chief Operations Officer, Saturna Brokerage Services

Director, Vice President, and Chief Operations Officer, Saturna Trust Company | N/A |
| (photo omitted)                   | **Michael E. Lewis** (55)1300 N. State StreetBellingham, WA 98225             | Chief Compliance Officer1(since 2012);N/A | Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds | N/A |
| (photo omitted)                   | **Thomas R. Phillips** (56)1300 N. State StreetBellingham, WA 98225           | Secretary(since 2015);N/A | Chief Legal Officer, Saturna Capital Corporation

Former Partner and Deputy General Counsel, Lord Abbett & Co. LLC | N/A |
| (photo omitted)                   | **Jacob A. Stewart** (36)1300 N. State StreetBellingham, WA 98225             | Anti-Money Laundering Officer1(since 2015);N/A | Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services 

Chief Compliance Officer, Saturna Brokerage Services

Bank Secrecy Act Officer, Saturna Trust Company | N/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 Trust's Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds' website, www.idahotaxexemptfund.com, includes additional information about the Trustees.

On November 30, 2016 the Trustees, officers, and their related accounts as a group owned 10.68% of the outstanding shares of the Fund. 

During the year ended November 30, 2016, the Independent Trustees were each paid by the Trust: (1) $2,000 annual retainer plus $1,000 per board meeting attended (in person or by phone), plus reimbursement of travel expenses; (2) $250 for committee meetings; and (3) $250 per quarter for serving as chariman of the board or any committee. 

As of November 30, 2016, all Trustees owned shares in one or more Saturna Investment Trust Funds.

Mr. Kaiser is an Interested Trustee by reason of his positions with the Trust's adviser (Saturna Capital Corporation) and underwriter (Saturna Brokerage Services), and is the primary manager of the Saturna Sustainable Equity Fund and Sextant International Fund portfolios. He is paid by Saturna Capital a salary, plus a bonus for each month the Saturna Sustainable Equity Fund or Sextant International Fund portfolios earn a 4 or 5 star rating from Morningstar (see www.saturna.com). The officers are paid by Saturna Capital and not the Trust. As of November 30, 2016, all Saturna Capital employees list above as officers owned shares in one or more of the Saturna Investment Trust funds, with Mr. Kaiser owning (directly or indirectly) over $10 million.

*1 Holds the same postion with Amana Mututal Funds Trust*

| *16* | *November 30, 2015* | *Annual Report* |
|------|---------------------|-----------------|

### *Renewal of Investment Advisory Contract	(unaudited)*

During their meeting of September 24, 2016 the Trustees of Saturna Investment Trust discussed the continuance of the Investment Advisory and Administration Agreement between Idaho Tax-Exempt Fund (the "Fund") and Saturna Capital Corporation ("Saturna"). In considering the renewal of the agreement with Saturna, the Trustees discussed the nature, extent, and quality of the services provided by Saturna to the Trust and the Fund. The Trustees discussed Saturna's experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, accounting, marketing, and distribution — all in addition to investment management.

The Trustees took into consideration Saturna's continued avoidance of significant operational and compliance problems, plus its investments in infrastructure, information management systems, personnel, training, and investor education materials, all designed to provide high quality investor services and meet investor needs. They recognized Saturna's efforts to recruit and retain increasingly qualified, experienced, and specialized staff and improve the capital base on which Saturna operates, which the Trustees believe is important to the long-term success of the Fund. They appreciate Saturna's focus on investors and its efforts to avoid potential conflicts of interest.

The Trustees considered the investment performance of the Fund over time, including the Fund's average annual total returns relative to its benchmark for the one-, three-, five-, and 10-year periods, all as of July 31, 2016. The Trustees also considered comparative information published by Morningstar Inc. ("Morningstar"), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed at length the Fund's  performance relative to its Morningstar category for the one-, three-, five- and 10-year periods ended August 31, 2016. The Trustees also considered the Fund's Morningstar performance rankings (one through five stars) for the one-, three-, five- and 10-year periods, ended as of July 31, 2016, and the Fund's performance ranking relative to the Fund's category selected by Lipper, Inc. for the same period.

With respect to long-term (10-year) performance, the Trustees found that the average annual total return of the Fund for the 10-year period ended on August 31, 2016, was equal to its Morningstar category average. The Trustees considered the short- and medium-term performance of the Fund, noting that the Fund's average annual total return for the one-, three-, and five-year period ended on August 31, 2016 was below its Morningstar category average.

The Trustees noted the risk-averse investment style and other factors, which can affect the Fund's performance relative to its broader Morningstar category. The Trustees also noted certain differences between the Fund and the peer funds within its Morningstar  category, including differences in investment strategies and asset size. The Trustees found that Saturna continued to manage the Fund in a manner that is designed to be risk-averse and attractive to long-term investors. The Trustees discussed and considered the efforts of Saturna to make additional resources available to assist in managing the Fund. The Trustees also considered Saturna's focus on improving investment performance without incurring materially higher levels of risk.

The Trustees also considered the performance and expenses of the Fund as compared to smaller group of funds with similar assets and investment objectives and strategies. The Trustees considered these comparative performance expense data, along with the comparative data published by Morningstar and the Fund's performance relative to its benchmark, to evaluate the Fund's performance over near-term and long-term time periods.

The Trustees also reviewed the fees and expenses of the Fund and considered the components of the Fund's operating expenses. The Trustees noted the steps that Saturna has undertaken to maintain competitive levels of Fund operating expenses. They noted the significant sponsorship of the Fund by Saturna evidenced, in part, by the amount of fees and expenses paid by Saturna out of its own resources and the Trustees appreciated Saturna's efforts help make the Fund more widely available and less expensive than would otherwise be the case without Saturna's efforts.

The Trustees recognized that the Fund remains relatively small and there have not been opportunities to consider economies of scale. The Trustees noted that Saturna continues to operate the Fund, often times at considerable costs to itself.

The Trustees reviewed Saturna's financial information and discussed the issue of Saturna's profitability as related to management and administration of the Trust. They discussed the reasonableness of Saturna's profitability as part of their evaluation of whether the advisory fees bear a reasonable relationship to the mix of services provided by Saturna, including the nature, extent, and quality of such services.

The Trustees considered and compared the fees charged by Saturna to other types of accounts, including non-mutual fund advisory clients. The Trustees noted the differences between the full range of services Saturna provides to the Fund, including investment advisory services, transfer agency services, shareholder services, and other services, as compared to the investment advisory services provided to the other advisory accounts.

The Trustees considered potential benefits to Saturna's other business lines from acting as investment adviser to the Fund, but also recognized that Saturna's other business lines benefit the Fund. The Trustees considered whether there are other potential benefits to Saturna in continuing to manage the Fund and the Trustees found that there were no material benefits other than Saturna's receipt of advisory fees.

The Trustees concluded that the fees paid by the Fund to Saturna were, from an arm's-length bargaining perspective, reasonable and in the best interest of the Fund and its shareowners in light of the services provided, comparative performance, expense and advisory fee information, costs of services provided, profits to be realized, and benefits derived or to be derived by Saturna from its relationship with the Fund. Following this discussion, the Trustees unanimously agreed to renew the agreement of Idaho Tax-Exempt Fund with Saturna Capital Corporation.

| *Annual Report* | *November 30, 2016* | *17* |
|-----------------|---------------------|------|

***Except for this legend, this page has been left blank intentionally.***

| *18* | *November 30, 2016* | *Annual Report* |
|------|---------------------|-----------------|

### *Availability of Portfolio Information*

- 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.
- The Fund's Form N-Q is available on the SEC's website at   www.sec.gov and at www.idahotaxexemptfund.com.
- The Fund's Form 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.
- The Fund makes a complete schedule of portfolio holdings after the end of each month available to investors at www.idahotaxexemptfund.com.

 

### *Availability of Proxy Voting Information*

-  A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Fund's website at www.idahotaxexemptfund.com; and (c) on the SEC's website at www.sec.gov.
-  Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-800-728-8762; (b) on the Fund's website at www.idahotaxexemptfund.com; and (c) on the SEC's website at www.sec.gov.

 

### *Householding Policy*

To reduce expenses, we may mail only one copy of the Fund's prospectus, each annual and semi-annual report, and proxy statement when necessary, to those addresses shared by two or more accounts. If you wish to receive individual and/or more copies of these documents, please call us at 1-800-728-8762 or write to us at Saturna Capital/Idaho Tax-Exempt Fund, P.O. Box N, Bellingham, WA 98227. We will begin sending you individual copies 30 days after receiving your request.

If you are currently receiving multiple copies and wish to receive only one copy, please call us at 1-800-728-8762 or write to us at Saturna Capital/Idaho Tax-Exempt Fund, P.O. Box N, Bellingham, WA 98227. We will begin sending you a single copy with subsequent report mailings. 

 

### *Privacy Statement*

At Saturna Capital and the Idaho Tax-Exempt Fund, we understand the importance of maintaining the privacy of your financial information. We want to assure you that we protect the confidentiality of any personal information that you share with us. In addition, we do not sell information about our current or former customers.

In the course of our relationship, we gather certain nonpublic information about you, including your name, address, investment choices, and account information. We do not disclose your information to unaffiliated third parties unless it is necessary to process a transaction; service your account; deliver your account statements, shareholder reports and other information; or as required by law. When we disclose information to unaffiliated third parties, we require a contract to restrict the companies' use of customer information and from sharing or using it for any purposes other than performing the services for which they were required.

We may share information within the Saturna Capital family of companies in the course of informing you about products or services that may address your investing needs.

We maintain our own technology resources to minimize the need for any third party services, and restrict access to information within Saturna. We maintain physical, electronic, and procedural safeguards to guard your personal information. If you have any questions or concerns about the security or privacy of your information please call us at 1-800-728-8762. 

| *Annual Report* | *November 30, 2016* | *19* |
|-----------------|---------------------|------|

### www.idahotaxexemptfund.com

This report is issued for the information of the shareowners of the Idaho Tax-Exempt 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, a series of Saturna Investment Trust.

(logo omitted)

**Saturna Capital1300 N. State StreetBellingham, WA 98225www.saturna.com1-800-728-8762**

**Saturna Brokerage Services, Distributor**

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### Item 2. Code of Ethics.

Registrant has adopted a code of ethics and is included with this submission as Exhibit (a). It may also be found on Registrant's website at http://www.saturna.com/code_of_ethics.shtml

### Item 3. Audit Committee Financial Expert.

(a)(1)(i) The Trust has an audit committee financial expert serving on its audit committee.

(a)(2)(ii) As of November 30, 2014, Mr. Ronald H. Fielding, 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, 2016, and 2015, the aggregate audit fees billed for professional services rendered by the principal accountant were $110,400 and $109,300, respectively.

*(b) Audit-Related Fees*There were no fees billed by the principal accountant for assurance and related services that were not included under paragraph (a) for the fiscal years ending November 30, 2016, and 2015.

*(c) Tax Fees*For the fiscal years ending November 30, 2016, and 2015, the aggregate tax fees billed for professional services rendered by the principal accountant were $25,400 and $25,200, respectively. 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, 2016, and 2015.

*(e)(1) Audit & Compliance Committee Pre-Approval Policies and Procedures*The following is an excerpt from the Saturna Investment Trust Audit & Compliance Committee Charter:

> 
*C. Oversight of Independent Auditors3. 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) Aggregate Non-Audit Fees*The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant are shown above in the response to Item 4(b), (c) and (d) above.

(1)  The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant's investment adviser, Saturna Capital Corporation ("Saturna"), for the fiscal years ended November 30, 2016 and 2015 were:

|            | Fiscal Year Ended |
|-----------------|-------------------|
|            | November 2016     | November 2015 |
| All other fees: | $21,500           | $21,500	 |

> 
The fees listed above consist of fees paid by Saturna to the Registrant's principal accountant for its review and report on Saturna's internal transfer agency control procedures and Saturna's custody control procedures.

(2)  The aggregate non-audit fees billed by the principal accountant for services rendered to entities controlling, controlled by, or under common control with Saturna, for the fiscal years ended November 30, 2016 and 2015 were:

|            | Fiscal Year Ended |
|-----------------|-------------------|
|            | November 2016     | November 2015 |
| All other fees: | None              | None |

*(h) Registrant's Audit Committee*

The Registrant's Audit Committee has considered the provision of non-audit services that were rendered to Saturna, and any entity controlling, controlled by or under common control with Saturna that provides ongoing services to the Registrant, that were not pre-approved pursuant to Rule 2-01 (c)(7)(ii) of Regulation S-X and has determined that the provision of such services is compatible with maintaining the independence of the Registrant's principal accountant.

### 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 20, 2016. Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed the internal control procedures for Saturna Investment Trust and found them reasonable and adequate.

(b) No change.

### Item 12. Exhibits

Exhibits included with this filing:

(a)(1) Code of Ethics.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

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### 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*Signature and Title

**Nicholas Kaiser, President**Printed name and Title

**January 30, 2017**Date

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company 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*Signature and Title

**Nicholas Kaiser, President**Printed name and Title

**January 30, 2017**Date

By:

*/s/ Christopher Fankhauser*Signature and Title

**Christopher Fankhauser, Treasurer**Printed name and Title

**January 30, 2017**Date

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