SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, DC 20549FORM N-CSRCERTIFIED SHAREHOLDER REPORT OF REGISTERED
  MANAGEMENT INVESTMENT COMPANIES
  Investment Company Act file number: 811-05071 or 33-13247SATURNA INVESTMENT TRUST
  (Exact Name of Registrant as Specified in Charter)1300 N. State Street
  Bellingham, Washington 98225-4730
  (Address of Principal Executive Offices, including ZIP Code)
  Nicholas F. Kaiser
  1300 N. State Street
  Bellingham, Washington 98225-4730
  (Name and Address of Agent for Service)
  Registrants Telephone Number- (360) 734-9900
  Date of fiscal year end: November 30, 2004
  Date of reporting period: November 30, 2004



---

Item 1. Reports to Stockholders.

|Sextant
      Mutual Funds | (graphic omitted)
|-------------------------- | -----------------



Fellow Shareowners:**2004, like 2003, was a profitable year for securities
investors**.  Stocks provided solid gains, while the bond markets marked
time as interest rates slowly rose.

Buoyed by consumer spending, more tax cuts, electioneering, and a very weak
U.S. dollar, corporate earnings continued strong. Inflation, fueled by energy
costs, began to rise. Consumer confidence is strong, buoyed by rising incomes.
We expect the overnight bank rate to rise another 1% over the next year, and the
red-hot housing sector is already feeling the chill. Economic growth is expected
to continue into 2005, as businesses increase investment spending.

However, a number of our most closely watched stock market indicators are
flagging caution, and we warn stock market investors to expect lesser returns in
2005.
  The no-load Sextant Funds are designed to address a broad spectrum of
investment needs. Again in 2004, Fund returns increased with higher risks, just
as expected. All stress low operating expenses and employ a "fulcrum"
advisory fee structure that rewards or penalizes Saturna Capital for investment
results. For the fiscal year ended November 30, 2004, comparative total returns
and percentile Morningstar category rankings (1 is best) are:

|Sextant Fund    | Total Return | vs. Morningstar     | Total Return | 12-mo. Rank (group size)*
|--------------- | ------------ | ------------------- | ------------ | -------------------------
|Short-Term Bond | 1.41%        | Short-Term Bonds    | 1.88%        | 63 (323)                 
|Bond Income     | 4.26%        | Long-Term Bonds     | 6.12%        | 79 (65)                  
|Growth          | 11.35%       | Mid-Cap Growth      | 10.71%       | 49 (799)                 
|International   | 17.11%       | Foreign Large Blend | 21.91%       | 87 (489)                 

Further information on each Fund is found in the following
sections of this report. Operating expenses are well below industry averages.
Further, the adviser has undertaken to entirely waive its affiliate’s
portfolio equity brokerage commissions for calendar 2005. In the footnotes, you
will notice another unusual feature of the Sextant funds: on average, over 22%
of each Sextant Fund is owned by the trustees, officers, and their immediate
families. Our portfolio managers welcome your comments and suggestions. We
invite you to invest your money with ours.



|Nicholas Kaiser,President                                | Phelps McIlvaine,Vice
              President                  
|-------------------------------------------------------- | ---------------------------------------------------------------
|(Manager, Sextant Growth;
        Sextant International) | (Manager, Sextant Bond Income;
        Sextant Short-Term Bond)

*The 12-month Rank shows how each Fund ranks (from 1 best to
    100 worst) in its Morningstar peer category for the year ended November 30,
    2004 - please see next page for more performance information, or see back
    of brochure for Morningstar disclosure.

December 23, 2004

|November
            30, 2004 Annual Report |  | 1
|------------------------------------------- |  | -

---

Additional Performance Information

|Average Annual Total Returns (as of
12/31/2004) | 1 year | 5 years | 10 years OR | Since inception
        on 9/28/1995
|----------------------------------------------- | ------ | ------- | ----------- | ------------------------------------
|Sextant Growth Fund                             | 16.44% | 2.37%   | 12.44%^     |                                     
|Sextant International Fund                      | 17.40% | 1.39%   |             | 8.93%                               
|Sextant Short-Term Bond Fund                    | 0.96%  | 5.23%   |             | 5.08%                               
|Sextant Bond Income Fund                        | 4.52%  | 8.07%   | 7.30%       |                                     

Performance data quoted in this report represents past performance,
    is before any taxes payable by shareowners, and is no guarantee of future
                performance. Mutual fund performance changes over time and
currently
                may be significantly
    lower than stated. Recent performance and Morningstar rating data is
published
    online at each months end. Please visit saturna.com or call Saturna
    Capital for current performance figures. Total returns are historical and
    include change
    in share value and reinvestment of dividends and capital gains, if any.
Share
    price, yield and return will vary and you may have a gain or loss when you
    sell your shares. 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.   Morningstar, Inc. is an independent fund performance
              monitor. Rankings are determined monthly from total returns by
              Morningstar, by category as determined by Morningstar. The overall
              Morningstar
              rating for a fund is derived from a weighted average of the
performance
              figures associated with its 3-, 5-, and 10-year (if applicable)
              Morningstar Rating. The average total return for a category is
              determined by
              Saturna Capital, utilizing the Morningstar database. Results are
              shown for twelve months because the Sextant Funds
performance
              fees are based on the same period.




|REPORT OF REGISTERED
INDEPENDENT
              PUBLIC ACCOUNTING FIRM
        To the Shareholders and Board of Trustees
          Saturna Investment Trust
          We have audited the accompanying statement of assets and liabilities
          of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant
          Growth Fund and Sextant International Fund, each a series of the
Saturna
          Investment Trust, including the schedules of investments as of
November
          30, 2004, and the related statements of operations for the year then
          ended, and the changes in net assets for each of the two years in the
          period then ended, and the financial highlights for each of the five
          years in the period then ended. 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. 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, 2004, by correspondence with the custodian. Our
          audit also includes assessing the accounting principles used and
significant
          estimates made by management, as well as evaluating the overall
financial
          statement presentation. We believe that our auditsprovide 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
          Growth Fund, and Sextant International Fund, as of November 30, 2004,
          the results of their operations for the year then ended, and the
changes
          in their net assets for each of the two years in the period then ended
          and their 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.
        /s/ *Tait, Weller &
Baker*
        Philadelphia, Pennsylvania
          December 17, 2004
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 |  | November 30, 2004
            Annual Report
|- |  | -------------------------------------------

---

|(graphic omitted)SEXTANT
            SHORT-TERM BOND FUND |  | INVESTMENTS
|--------------------------------------------------------- |  | -----------

|                                                                  |                                   |                        | As of November 30,
2004
|----------------------------------------------------------------- | --------------------------------- | ---------------------- | -----------------------
|Rating*                                                           | Issuer                            | Coupon/Maturity        | Face
Amount            
|                                                                  |                                   |                        |                        
|                                                                  | Banking                           |                        |                        
|A                                                                 | Bankers Trust  sub notes          | 8.25% due 5/1/2005     | $85,000                
|A-                                                                | Washington Mutual Financial       | 8.25% due 6/15/2005    | 75,000                 
|                                                                  |                                   | SUB-TOTAL              | 160,000                
|                                                                  |                                   |                        |                        
|                                                                  | Building Products                 |                        |                        
|A-                                                                | Lowe's Companies                  | 7.50% due 12/15/2005   | 70,000                 
|                                                                  |                                   |                        |                        
|                                                                  | Computer                          |                        |                        
|AA-                                                               | Hewlett Packard                   | 7.15% due 6/15/2005    | 70,000                 
|                                                                  |                                   |                        |                        
|                                                                  | Cosmetics & Toiletries            |                        |                        
|A                                                                 | Avon Products                     | 6.55% due 8/1/2007     | 95,000                 
|                                                                  |                                   |                        |                        
|                                                                  | Finance & Insurance               |                        |                        
|A                                                                 | Allliance Capital Management      | 5.625% due 8/15/2006   | 65,000                 
|AAA                                                               | Federal Home Loan Mortgage Corp   | 3.00% due 8/18/2005    | 100,000                
|BBB+                                                              | General Motors Accp't Corp        | 5.00% due 9/15/2009    | 50,000                 
|A+                                                                | International Finance AIG         | 5.75% due 10/15/2006   | 95,000                 
|A-                                                                | Lincoln National Insurance        | 7.25% due 5/15/2005    | 100,000                
|                                                                  |                                   | SUB-TOTAL              | 410,000                
|                                                                  |                                   |                        |                        
|                                                                  | Machinery                         |                        |                        
|A-                                                                | Rockwell Automation International | 6.15% due 1/15/2008    | 95,000                 
|                                                                  |                                   |                        |                        
|                                                                  | Medical Drugs                     |                        |                        
|A                                                                 | Amgen                             | 6.5% due 12/1/2007     | 90,000                 
|AAA                                                               | Bristol Myers Squibb              | 4.75% due 10/1/2006    | 90,000                 
|AAA                                                               | Pfizer                            | 5.625% due 2/1/2006    | 100,000                
|A-                                                                | Wyeth                             | 7.90% due 2/15/2005    | 75,000                 
|                                                                  |                                   | SUB-TOTAL              | 355,000                
|                                                                  |                                   |                        |                        
|                                                                  | Oil & Gas                         |                        |                        
|BBB+                                                              | Union Oil of California           | 7.20% due 5/15/2005    | 100,000                
|                                                                  |                                   |                        |                        
|                                                                  | Publishing                        |                        |                        
|A-                                                                | Tribune                           | 6.875% due 11/1/2006   | 45,000                 
|                                                                  |                                   |                        |                        
|                                                                  | Telecommunications                |                        |                        
|AA-                                                               | Southwestern Bell                 | 6.625% due 7/15/2007   | 95,000                 
|A-                                                                | Verizon Wireless Capital          | 5.375% due 12/15/20006 | 82,000                 
|                                                                  |                                   | SUB-TOTAL              | 177,000                
|                                                                  |                                   |                        |                        
|                                                                  | Utilities                         |                        |                        
|AA-                                                               | Florida Power & Light             | 6.875% due 12/1/2005   | 95,000                 
|BBB                                                               | PSI Energy                        | 7.85% due 10/15/2007   | 90,000                 
|A-                                                                | Sempra Energy                     | 6.95% due 12/1/2005    | 92,000                 
|                                                                  |                                   | SUB-TOTAL              | 277,000                
|                                                                  |                                   |                        |                        
|Total Investments                                                 | (Cost = $1,991,482)               | $1,854,000             | $1,916,831             
|**Other Assets (net of liabilities)**                             |                                   |                        | **338,576**            
|Total Net Assets                                                  |                                   |                        | $2,255,407             
|*Ratings are the lesser of S&P or
Moody's
            (unaudited)

|November
            30, 2004 Annual Report |  | 3
|------------------------------------------- |  | -

---

|(Graphic
          Omitted) FINANCIAL
          HIGHLIGHTS |  | SEXTANT
SHORT-TERM
              BOND FUND
|---------------------------------------------------------- |  | ------------------------------------------

|Selected data per share of capital stock
          outstanding
        throughout the year | For Year Ended November 30,
|------------------------------------------------------------------------------------------ | ---------------------------
|                                                                                           |                            
|Net asset value at beginning of year                                                       |                            
|Income from investment operations                                                          |                            
|Net investment income                                                                      |                            
|Net gains or losses on securities (both realized and
unrealized)                           |                            
|Total from investment operations                                                           |                            
|Less distributions                                                                         |                            
|Dividends (from net investment income)                                                     |                            
|Total distributions                                                                        |                            
|Net asset value at end of year                                                             |                            
|Total Return                                                                               |                            
|                                                                                           |                            
|Ratios / Supplemental Data                                                                 |                            
|Net assets ($000), end of year                                                             |                            
|**Ratio of expenses to average net
assets**                                                |                            
|Before  fee waiver                                                                         |                            
|After  fee waiver                                                                          |                            
|Ratio of net investment income after waivers to average
        net assets                 |                            
|                                                                                           |                            
|Portfolio turnover rate                                                                    |                            

|STATEMENT OF
ASSETS
              AND LIABILITIES
|-------------------------------------------------

As of November 30, 2004

|                                                                         |                                                  |            |           
|------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ----------
|Assets                                                                   |                                                  |            |           
|Bond investments (Cost $1,991,482)                                       |                                                  | $1,916,831 |           
|Cash                                                                     |                                                  | 304,197    |           
|Interest receivable                                                      |                                                  | 35,117     |           
|Due from affiliates                                                      |                                                  | 3,320      |           
|                                                                         | Total Assets                                     |            | $2,259,465
|Liabilities                                                              |                                                  |            |           
|Other Liabilities                                                        |                                                  | 4,058      |           
|                                                                         | Total Liabilities                                |            | 4,058     
|                                                                         |                                                  |            |           
|Net Assets                                                               |                                                  |            | $2,255,407
|                                                                         |                                                  |            |           
|Fund shares outstanding                                                  |                                                  |            | 454,105   
|                                                                         |                                                  |            |           
|Analysis of Net Assets                                                   |                                                  |            |           
|Paid in Capital (unlimited shares authorized, without par
        value) |                                                  | 2,284,003  |           
|Accumlated net realized loss                                             |                                                  | (33,945)   |           
|Unrealized net appreciation on investments                               |                                                  | 5,349      |           
|                                                                         | Net Assets applicable to Fund shares outstanding |            | $2,255,407
|Net Asset Value, Offering and Redemption price per
share                 |                                                  |            | $4.97     



(The accompanying notes are an integral part of these
        financial statements)

|4 |  | November 30, 2004
              Annual Report
|- |  | ---------------------------------------------

---

|SEXTANT
SHORT-TERM
            BOND FUND |  | STATEMENT OF
              OPERATIONS(Graphic
              Omitted)
|---------------------------------------- |  | --------------------------------------------------------------------

|                                                       |                                  | For the year ended November 30, 2004
|------------------------------------------------------ | -------------------------------- | ------------------------------------
|Investment Income                                      |                                  |                                     
|Interest income                                        |                                  | $134,538                            
|Amortization of bond premium                           |                                  | (31,333)                            
|Accretion                                              |                                  | 1,631                               
|Miscellaneous income                                   |                                  | 30                                  
|                                                       | Gross investment income          |                                     
|                                                       |                                  |                                     
|Expenses                                               |                                  |                                     
|Investment adviser and administration fees             |                                  | 15,034                              
|Custodian fees                                         |                                  | 2,857                               
|Audit  fees                                            |                                  | 2,772                               
|Filing and registration fees                           |                                  | 2,680                               
|Legal fees                                             |                                  | 1,912                               
|Insurance                                              |                                  | 1,191                               
|Printing and postage                                   |                                  | 566                                 
|Trustee fees                                           |                                  | 353                                 
|Other expenses                                         |                                  | 205                                 
|Total gross expenses                                   |                                  | 27,570                              
|Less adviser fees waived                               |                                  | (11,573)                            
|Less custodian fees waived                             |                                  | (2,047)                             
|Net expenses                                           |                                  |                                     
|                                                       | Net investment income            |                                     
|                                                       |                                  |                                     
|Net realized loss on investments                       |                                  |                                     
|Proceeds from sales                                    |                                  | 843,188                             
|Less: cost of securities sold based on identified
cost |                                  | 847,610                             
|                                                       | Realized net loss                |                                     
|                                                       |                                  |                                     
|Unrealized gain on investments                         |                                  |                                     
|End of year                                            |                                  | 5,349                               
|Beginning of year                                      |                                  | 62,732                              
|Decrease in unrealized gain for the year               |                                  |                                     
|                                                       | Net realized and unrealized loss |                                     
|Net increase in net assets resulting from
operations   |                                  | $29,111                             

(The accompanying notes are an integral part of these
        financial statements)

|November 30, 2004
Annual
            Report |  | 5
|------------------------------------------- |  | -

---

|(Graphic
          Omitted)STATEMENT
          OF CHANGES IN NET ASSETS |  | SEXTANT
SHORT-TERM
              BOND FUND
|----------------------------------------------------------------------- |  | ------------------------------------------

|                                                     | Year ended    | Year ended   
|---------------------------------------------------- | ------------- | -------------
|                                                     | Nov. 30, 2004 | Nov. 30, 2003
|INCREASE (DECREASE) IN NET ASSETS                    |               |              
|*From Operations*                                    |               |              
|Net investment income                                | $90,916       | $101,861     
|Net realized gain (loss) on investments              | (4,422)       | 6,196        
|Net decrease in unrealized appreciation              | (57,383)      | (795)        
|Net increase in net assets                           | 29,111        | 107,262      
|                                                     |               |              
|*Dividends to shareowners from*                      |               |              
|Net investment income                                | (90,916)      | (101,962)    
|                                                     |               |              
|*Fund Share transactions*                            |               |              
|Proceeds from sales of shares                        | 610,686       | 551,793      
|Value of shares issued in reinvestment of
dividends  | 90,739        | 100,884      
|                                                     | 701,425       | 652,677      
|Cost of shares redeemed                              | (643,510)     | (575,737)    
|Net increase in net assets                           | 57,915        | 76,940       
|Total increase (decrease) in net assets              | (3,890)       | 82,240       
|                                                     |               |              
|NET ASSETS                                           |               |              
|Beginning of year                                    | 2,259,297     | 2,177,057    
|End of year                                          | $2,255,407    | $2,259,297   
|                                                     |               |              
|Shares of the fund sold and redeemed                 |               |              
|Number of shares sold                                | 119,937       | 107,305      
|Number of shares issued in reinvestment of dividends | 18,013        | 19,603       
|                                                     | 137,950       | 126,908      
|Number of shares redeemed                            | (127,472)     | (112,516)    
|Net increase in number of shares outstanding         | 10,478        | 14,392       

(The accompanying notes are an integral part of these
        financial statements)

|DISCUSSION
            OF SEXTANT SHORT-TERM BOND FUND PERFORMANCE | (unaudited)
|------------------------------------------------------------------ | -----------

FISCAL YEAR
2004For the fiscal year ending November 30, 2004, the Sextant Short-Term Bond
  Fund provided a total return of 1.45%. The share price moved in a range of
  $4.96 to $5.12, a maximum variation of 3.2%. The current thirty-day SEC yield
  rose to 3.27% from 2.65% at this time last year, consistent with rising
short-term
  rates. The Fund ranked in the top 63% of 323 funds in the Morningstar
“Short-term
  Bond” category. At November 30, 2004, the Fund's overall Morningstar
  category rating was 4-star, and “"above average"” for
  returns and “"average"for risk (see Morningstar, page 35).

The Fund's annual expense ratio decreased to 0.58% from 0.60%,
  reflecting management fee performance adjustments and the adviser's voluntary
  expense cap.



FACTORSAFFECTING PAST PERFOMANCE
    Over the last twelve months, the Federal Reserve reversed its accommodative
      policy and raised the Federal Funds rate from 1.00% to 2.25% in
“"measured"” response
      to a growing economy. Credit spreads narrowed further due to strong
profits.
      Investment grade credits generally outperformed US Treasuries with similar
      maturities. The Fund remained overweight in investment grade corporate
      notes and added positions in US government agency paper.

|6 |  | November 30, 2004
              Annual Report
|- |  | ---------------------------------------------

---

Fund returns suffered slightly from a shorter than normal
    average maturity and a flattening yield curve where short maturity paper
    underperformed long maturity paper. Portfolio holdings table at November
    30, 2004:

Ratings 
        established
        By 
        Advisor
        By Standard & Poor's
        By Moody's 
        Investor ServicesAAA
        9.0%
        0.0%
        9.0%AA
        3.4%
        12.4%
        7.8%A
        54.2%
        53.2%
        49.9%BBB
        18.7%
        15.3%
        18.7%unrated
        --
        4.4%
        0.0%cash
        14.7%
        14.7%
        14.7%


For the last five years, the Fund earned 5.22% annualized
total return, ranking in the top 31% of 174 funds in its Morningstar category.

LOOKING
FORWARD
  We expect the US economy to grow 2% to 4% in 2005, and corporate profits to
increase 7% to 14%.  We expect the Federal Reserve to increase short-term rates
to 3.5% and the yield curve to flatten further.  The collapse of the US dollar,
rising gold, commodity and energy prices all threaten future inflation.
Continuing economic globalization limits the impact of these forces on domestic
inflation.  This could mean another year of positive real returns for the
Fund.

MANAGEMENT FEE
CALCULATIONS
  The Sextant Short-Term Bond Fund calculates part of its management fee based
    on a comparison of the Fund's
  return to the average return of the Morningstar category Short-Term Bond. The
  Fund's 12-month return (1.45%) was within one percent of the Morningstar
average
  (1.88%) on November 30, 2004. Therefore, no performance adjustment was made
  to the basic 0.60% annual management fee for the month of December 2004.

COMPARISON TO
INDEX
  Comparison of any mutual fund to a market index must be made bearing in mind
that the Index is unmanaged, and expense-free.  The graph below compares $10,000
invested in the Fund at its inception in September 1995, compared to a similar
amount invested in the Salomon Brothers Gov/Corp Investment Grade Bond Index for
maturities between one and three years.  The graph shows that a $10,000
investment made on September 1995 would have risen to $15,818 in the Fund and
$16,509 in the Index.  The returns shown do not reflect the deduction of income
taxes that an investor could pay on income received or the sale of profitable
investments.

Sextant Short-Term Bond Fund vs. Salomon Gov/Corp 1-3 yr.
(unaudited)

Fund Average Annual Returns
    One Year 1.41%
    Five Year 5.22%
    Since Inception 5.12%

(graph omitted)



|November 30, 2004
Annual
            Report |  | 7
|------------------------------------------- |  | -

---

SEXTANT SHORT-TERM BOND FUND
            EXPENSES(unadited)As a Sextant Short-Term Bond Fund shareowner, you incur ongoing
costs, including management fees and other fund expenses. Unlike many mutual
funds, you do not incur sales charges (loads) on purchase payments, reinvested
dividends, or other distributions. Nor do you incur redemption fees, exchange
fees, or fees related to Individual Retirement Accounts. You may incur fees
related to extra services requested by you for your account, such as bank
wires.**EXAMPLE**
      The example is based on an investment of $1,000 invested at the beginning
of the fiscal year and held for the entire year [Friday, November 28, 2003 to
Tuesday, November 30, 2004].**ACTUAL EXPENSES**
        The first line provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you have invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, a $9,400
account value divided by $1,000 = 9.4), then multiply the result by the number
in the first line under heading entitled “Expenses Paid During Year”
to estimate the expenses you paid on your account during this fiscal year. The
Fund also charges the following fees for extra services rendered on request,
which you may need to add to determine your total expenses: $10 per checkbook,
$25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**
      The second line provides information about hypothetical account values and
hypothetical expenses based on the Fund’s actual expense ratio (based on
the last six months) and an assumed rate of return of 5% per year before
expenses, which is not the Fund’s actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the year. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareowner reports of the other funds. You may wish to add other
fees that are not included in the expenses shown in the table, such as IRA fees
(there are no IRA fees with the Sextant Funds), and charges for extra services
such as check writing and bank wires. Please note that the expenses shown are meant to highlight your ongoing
costs only and do not reflect any transactional costs, such as sales charges
(loads), redemption fees, or exchange fees (note that the Sextant Funds do not
have any such transactional costs). Therefore, the second line is useful in
comparing ongoing costs only, and may not help you determine the relative total
costs of owning different funds. SEXTANT SHORT-TERM BOND FUND Beginning Account
Value
            [Friday, November 28, 2003]
          Ending Account
Value 
            [Tuesday, November 30, 2004]
          Expenses Paid
During Period*Actual
            (1.41% return 
            after expenses)
          $1,000.00
          $1,014.10
          $5.64Hypothetical
            (5% return 
            before expenses)
          $1,000.00
          $1,044.40
          $5.72 * Expenses are equal to Sextant Short-Term Bond Fund's
          annualized expense ratio of 0.56% (based on the most recent
semi-annual
          period of June 1, 2004 through November 30, 2004), multiplied by the
          average account value of $1,007.25 over the period.


8
      
      November 30, 2004 Annual Report


|INVESTMENTS |  | SEXTANT
                  BOND INCOME FUND(Graphic
                  Omitted)
|----------- |  | -----------------------------------------------------------------------------

|        |                                 |                      | As of November 30,
2004
|------- | ------------------------------- | -------------------- | -----------------------
|Rating* | Issuer                          | Coupon/Maturity      | Face Amount            
|        |                                 |                      |                        
|        | Automotive                      |                      |                        
|BBB     | Auto Zone                       | 5.50% due 11/15/2015 | $95,000                
|        |                                 |                      |                        
|        | Banking                         |                      |                        
|A+      | Chase Manhattan                 | 7.125% due 6/15/2009 | 50,000                 
|A+      | Citicorp                        | 7.25% due 10/15/2011 | 50,000                 
|A-      | Comerica Bank                   | 7.125% due 12/1/2013 | 50,000                 
|A+      | Norwest Financial               | 6.85% due 7/15/2009  | 50,000                 
|        |                                 | SUB-TOTAL            | 200,000                
|        |                                 |                      |                        
|        | Building Products               |                      |                        
|BBB+    | Masco Corporation               | 7.125% due 8/15/2013 | 60,000                 
|        |                                 |                      |                        
|        | Chemicals                       |                      |                        
|A-      | Air Products & Chemicals        | 8.75% due 4/15/2021  | 50,000                 
|        |                                 |                      |                        
|        | Diversified Financial Services  |                      |                        
|AAA     | General Electric Capital        | 8.125% due 5/15/2012 | 60,000                 
|        |                                 |                      |                        
|        | Electric Utilities              |                      |                        
|A-      | Commonwealth Edison             | 7.50% due 7/1/2013   | 50,000                 
|        |                                 |                      |                        
|        | Electronics                     |                      |                        
|A-      | Koninlijke Phillips Electronics | 7.25% due 8/15/2013  | 50,000                 
|BBB+    | Sempra Energy                   | 7.95% due 3/1/2010   | 50,000                 
|        |                                 | SUB-TOTAL            | 100,000                
|        |                                 |                      |                        
|        | Food                            |                      |                        
|BBB+    | Conagra                         | 7.875% due 9/15/2010 | 50,000                 
|A+      | Hershy Foods                    | 6.95% due 8/15/2012  | 50,000                 
|A-      | HJ Heinz                        | 6.00 % due 3/15/2012 | 75,000                 
|        |                                 | SUB-TOTAL            | 175,000                
|        |                                 |                      |                        
|        | Insurance                       |                      |                        
|A+      | Allstate                        | 7.50% due 6/15/2013  | 50,000                 
|A       | Progressive                     | 7.00% due 10/1/2013  | 75,000                 
|A+      | XL Capital                      | 6.50% due 1/15/2012  | 90,000                 
|        |                                 | SUB-TOTAL            | 215,000                
|        |                                 |                      |                        
|        | Investment Finance              |                      |                        
|A       | Bear Stearns                    | 3.5% due 6/27/2008   | 100,000                
|AA-     | Morgan Stanley Dean Witter      | 6.75% due 10/15/2013 | 50,000                 
|AA      | Paine Webber Group              | 7.625% due 2/15/2014 | 50,000                 
|        |                                 | SUB-TOTAL            | 200,000                

|November 30, 2004
Annual Report |  | 9
|------------------------------- |  | -

---

|INVESTMENTS |  | SEXTANT
                  BOND INCOME FUND(Graphic
                  Omitted)
|----------- |  | -----------------------------------------------------------------------------

|Rating*                                               | Issuer                                | Coupon/Maturity      | Face Amount | Market Value | Percentage
|----------------------------------------------------- | ------------------------------------- | -------------------- | ----------- | ------------ | ----------
|                                                      |                                       |                      |             |              |           
|                                                      | Machinery                             |                      |             |              |           
|A                                                     | Caterpillar                           | 9.375% due 8/15/2011 | $40,000     | $51,005      | 1.9%      
|A+                                                    | Dover                                 | 6.25% due 6/1/2008   | 70,000      | 74,738       | 2.8%      
|                                                      |                                       | SUB-TOTAL            | 110,000     | 125,743      | 4.7%      
|                                                      |                                       |                      |             |              |           
|                                                      | Medical Supplies                      |                      |             |              |           
|A+                                                    | Becton Dickinson                      | 7.15% due 10/1/2009  | 40,000      | 44,725       | 1.7%      
|                                                      |                                       |                      |             |              |           
|                                                      | Oil & Gas                             |                      |             |              |           
|A                                                     | Baker Hughes                          | 6.00% due 2/15/2009  | 70,000      | 74,411       | 2.8%      
|AA-                                                   | Texaco Capital                        | 8.625% due 6/30/2010 | 40,000      | 48,264       | 1.8%      
|                                                      |                                       | SUB-TOTAL            | 110,000     | 122,675      | 4.6%      
|                                                      |                                       |                      |             |              |           
|                                                      | Real Estate                           |                      |             |              |           
|BBB+                                                  | Archstone Smith                       | 5.625% due 8/15/2014 | 50,000      | 49,895       | 1.9%      
|                                                      |                                       |                      |             |              |           
|                                                      | Retailing                             |                      |             |              |           
|A                                                     | Dayton Hudson (Target Stores)         | 10.00% due 1/1/2011  | 50,000      | 63,818       | 2.4%      
|A                                                     | Lowe's Companies                      | 8.25% due 6/1/2010   | 50,000      | 58,897       | 2.2%      
|A-                                                    | May Department Stores                 | 8.00% due 7/15/2012  | 50,000      | 58,346       | 2.2%      
|AA                                                    | Wal-Mart Stores                       | 7.25% due 6/1/2013   | 45,000      | 52,462       | 2.0%      
|                                                      |                                       | SUB-TOTAL            | 195,000     | 233,523      | 8.8%      
|                                                      |                                       |                      |             |              |           
|                                                      | Telecommunications                    |                      |             |              |           
|AA-                                                   | GTE                                   | 6.90% due 11/1/2008  | 50,000      | 53,842       | 2.0%      
|                                                      |                                       |                      |             |              |           
|                                                      | Transportation                        |                      |             |              |           
|BBB+                                                  | Southwest Airlines                    | 6.50% due 3/1/2012   | 75,000      | 82,483       | 3.1%      
|A-                                                    | US Freightways                        | 8.50% due 4/25/2010  | 50,000      | 57,690       | 2.2%      
|                                                      |                                       | SUB-TOTAL            | 125,000     | 140,173      | 5.3%      
|                                                      |                                       |                      |             |              |           
|                                                      | US Government                         |                      |             |              |           
|AAA                                                   | Federal Home Loan Mortgage Corp       | 5% due 8/1/2009      | 100,000     | 100,126      | 3.8%      
|AAA                                                   | Federal National Mortgage Association | 5% due 4/10/2015     | 100,000     | 99,455       | 3.8%      
|AAA                                                   | US Treasury Note                      | 5.50% due 2/15/2008  | 225,000     | 239,834      | 9.1%      
|                                                      |                                       | SUB-TOTAL            | 425,000     | 439,415      | 16.7%     
|                                                      |                                       |                      |             |              |           
|Total Investments                                     | (Cost = $2,379,701)                   | $2,310,000           | $2,540,229  | **96.1%**   
|**Other Assets (net of liabilities)**                 |                                       |                      | **102,371** | **3.9%**    
|Total Net Assets                                      |                                       |                      | $2,642,600  | **100.0%**  
|                                                      |                                       |                      |             |             
|*Ratings are the lesser of S&P or Moody's (unaudited)

|10 |  | November 30, 2004 Annual Report
|-- |  | -------------------------------

---

|FINANCIAL
              HIGHLIGHTS |  | SEXTANT BOND
                INCOME FUND(graphic
                omitted)
|---------------------------------- |  | -------------------------------------------------------------------------

|Selected data per share of capital stock outstanding

        throughout the year | For Year Ended November 30,
|--------------------------------------------------------------------------------- | ---------------------------
|                                                                                  |                            
|Net asset value at beginning of year                                              |                            
|Income from investment operations                                                 |                            
|Net investment income                                                             |                            
|Net gains or losses on securities (both realized and
          unrealized)        |                            
|Total from investment operations                                                  |                            
|Less distributions                                                                |                            
|Dividends (from net investment income)                                            |                            
|Total distributions                                                               |                            
|Net asset value at end of year                                                    |                            
|                                                                                  |                            
|Total return                                                                      |                            
|                                                                                  |                            
|Ratios/supplemental data                                                          |                            
|Net assets ($000), end of year                                                    |                            
|**Ratio of expenses to average net
assets**                                       |                            
|Before fee waiver                                                                 |                            
|After fee waiver                                                                  |                            
|Ratio of net investment income after waiver to average
          net assets       |                            
|                                                                                  |                            
|Portfolio turnover rate                                                           |                            

|STATEMENT OF
                ASSETS AND LIABILITIES
|---------------------------------------------------

|As of November 30, 2004                                                    |                                                  |            |           
|-------------------------------------------------------------------------- | ------------------------------------------------ | ---------- | ----------
|                                                                           |                                                  |            |           
|Assets                                                                     |                                                  |            |           
|Bond investments (cost $2,379,701)                                         |                                                  | $2,540,229 |           
|Cash                                                                       |                                                  | 58,840     |           
|Interest receivable                                                        |                                                  | 43,691     |           
|Due from affiliates                                                        |                                                  | 2,457      |           
|Insurance reserve premium                                                  |                                                  | 400        |           
|                                                                           | Total Assets                                     |            | $2,645,617
|Liabilities                                                                |                                                  |            |           
|Other Liabilities                                                          |                                                  | 3,017      |           
|                                                                           | Total Liabilities                                |            | 3,017     
|Net Assets                                                                 |                                                  |            | $2,642,600
|                                                                           |                                                  |            |           
|Fund Shares Outstanding                                                    |                                                  |            | 522,676   
|                                                                           |                                                  |            |           
|Analysis of Net Assets                                                     |                                                  |            |           
|Paid in capital (unlimited shares authorized, without
          par value) |                                                  | 2,515,913  |           
|Accumlated net realized loss                                               |                                                  | (33,841)   |           
|Unrealized net appreciation on investments                                 |                                                  | 160,528    |           
|                                                                           | Net Assets applicable to Fund shares outstanding |            | $2,642,600
|Net Asset Value, Offering and Redemption price per
            share       |                                                  | $5.06     

(The accompanying notes are an integral part of these
financial
      statements)



|November 30, 2004
Annual Report |  | 11
|------------------------------- |  | --

---

|(graphic
          omitted)SEXTANT BOND
          INCOME FUND |  | STATEMENT OF
              OPERATIONS
|------------------------------------------------------------- |  | -------------------------------------

|                                                     |                                  | For the year ended November 30, 2004
|---------------------------------------------------- | -------------------------------- | ------------------------------------
|Investment income                                    |                                  |                                     
|Interest income                                      |                                  | $145,106                            
|Amortization of bond premium                         |                                  | (12,233)                            
|Accretion                                            |                                  | 466                                 
|                                                     | Gross investment income          |                                     
|Expenses                                             |                                  |                                     
|Investment adviser and administration fees           |                                  | 10,560                              
|Audit fees                                           |                                  | 2,682                               
|Filing and registration fees                         |                                  | 2,488                               
|Insurance                                            |                                  | 2,019                               
|Legal fees                                           |                                  | 1,968                               
|Custodian fees                                       |                                  | 1,437                               
|Printing and postage                                 |                                  | 619                                 
|Trustee fees                                         |                                  | 430                                 
|Other expenses                                       |                                  | 160                                 
|Total gross expenses                                 |                                  | 22,363                              
|Less custodian fees waived                           |                                  | (667)                               
|Net expenses                                         |                                  |                                     
|                                                     | Net investment income            |                                     
|Unrealized gain on investments                       |                                  |                                     
|End of year                                          |                                  | 160,528                             
|Beginning of year                                    |                                  | 169,117                             
|Decrease in unrealized gain for the period           |                                  |                                     
|                                                     | Net realized and unrealized loss |                                     
|Net increase in net assets resulting from
operations |                                  | $103,054                            



|STATEMENT OF
            CHANGES IN NET ASSETS |  | 
|---------------------------------------------- |  | 

|                                                     | Year ended    | Year ended   
|---------------------------------------------------- | ------------- | -------------
|                                                     | Nov. 30, 2004 | Nov. 30, 2003
|INCREASE IN NET ASSETS                               |               |              
|From Operations                                      |               |              
|Net investment income                                | $111,643      | $97,023      
|Net realized gain on investments                     | -             | -            
|Net increase (decrease) in unealized appreciation    | (8,589)       | 45,734       
|Net increase in net assets                           | 103,054       | 142,757      
|                                                     |               |              
|Dividends to shareowners from                        |               |              
|Net investment income                                | (111,643)     | (97,200)     
|                                                     |               |              
|From tund share transactions                         |               |              
|Proceeds from sales of shares                        | 418,675       | 187,626      
|Value of shares issued in reinvestment of dividends  | 106,570       | 91,934       
|                                                     | 525,245       | 279,560      
|Cost of shares redeemed                              | (146,179)     | (158,167)    
|Net increase in net assets                           | 379,066       | 121,393      
|Total increase in net assets                         | $370,477      | $166,950     
|                                                     |               |              
|NET ASSETS                                           |               |              
|Beginning of year                                    | 2,272,123     | 2,105,173    
|End of year                                          | $2,642,600    | $2,272,123   
|                                                     |               |              
|Shares of the fund sold and redeemed                 |               |              
|Number of shares sold                                | 82,699        | 36,687       
|Number of shares issued in reinvestment of dividends | 20,985        | 17,851       
|                                                     | 103,684       | 54,538       
|Number of shares redeemed                            | (29,190)      | (30,137)     
|Net increase in number of shares outstanding         | 74,494        | 24,401       

(The accompanying notes are an integral part of these
financial
      statements)

|12 |  | November 30, 2004 Annual Report
|-- |  | -------------------------------

---

|DISCUSSION
            OF SEXTANT BOND INCOME FUND PERFORMANCE | (unaudited)
|-------------------------------------------------------------- | -----------

FISCAL YEAR
2004
  For the fiscal year ending November 30, 2004, the Sextant Bond Income Fund
    returned 4.34%. At the end of the fiscal year, the Fund ranked in the top
    79% of the 65 funds in the Morningstar “"Long-term Bond"
category.
    At November 30, 2004, the Fund's overall Morningstar category rating
    was 2-star, and “"average" for returns and
"average" for
    risk (see Morningstar, page 35).

The Fund's annual expense ratio decreased to 0.87% from 0.97%,
    reflecting management fee performance adjustments and growth in assets. The
  Fund's current thirty-day SEC yield is 3.73%, less than the 4.01% at
  the end of last year.

FACTORS AFFECTING
PAST PERFORMANCE
  Under normal circumstances, the Fund's policy is to maintain a dollar-weighted
    average maturity of ten years or more. However, with interest rate levels
    lower than they have been in over 40 years, the price risk of holding very
    long-term bonds is excessive in light of the Fund's capital preservation
    goal. While inflation is not yet rampant, the Fund's average effective
    maturity is conservatively being kept to less than 8 years. While we were
    early in reducing the average maturity, the Fund is now well-protected
should
    the expected rise in interest rates materialize. The majority of the Fund's
    recent performance comes from an average portfolio maturity that was less
    than its Morningstar category during an extended period of low, long-term
    interest rates.

The table provides a summary of portfolio holdings as of
November 30, 2004:

Ratings established
        By
          Advisor
        By Standar &
          Poor's
        By Moody's
          Investor ServicesAAA
        19.4%
        15.6%
        19.4%AA
        10.4%
        8.2%
        12.5%A
        44.6%
        50.0%
        44.7%BBB
        22.1%
        18.9%
        19.9%unrated
        --
        3.8%
        0.0%cash
        3.5%
        3.5%
        3.5%


For the last five years, the Fund earned 5.22% annualized
total return, ranking in the top 31% of 174 funds in its Morningstar category.

LOOKING
FORWARDWe expect the US economy to grow 2% to 4% in 2005, and corporate profits
to increase 7% to 14%. We expect the Federal Reserve to increase short-term
rates to 3.5% and the yield curve to flatten further. The collapse of the US
dollar, rising gold, commodity and energy prices all threaten future inflation.
However, continuing economic globalization limits the impact of these forces on
domestic inflation. Investment-grade bond spreads are historically narrow,
however we do not expect this sector to underperform U.S. Treasury bonds during
the coming year. The Fund continues to overweight high-grade corporate debt, and
is adding U.S. Government agency positions. We anticipate another year of
positive real returns in 2005.

MANAGEMENT FEE
CALCULATIONSThe Sextant Bond Income Fund calculates its management fee based
  on a comparison of the Fund's return to the return of Morningstar's
“"Long-term
  Bond" category. This category consists of mutual fund portfolios that
“"focus
  on corporate and other investment grade issues with an average duration of
  more than six years or an effective average maturity of more than ten
years."
  The Fund's +4.26% 12-month return was below that of the index (+6.12%)
  on November 30, 2004. Therefore, the basic 0.60%

|November 30, 2004
Annual Report |  | 13
|------------------------------- |  | --

---




COMPARISON TO
INDEX
  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 below compares $10,000 invested in the
    Fund at its inception, compared to a similar amount invested in The Salomon
    Brothers Broad Investment-Grade Bond Index. The graph shows that the
investment
    at the beginning of November 1994 would have risen to $20,637 in the Fund
    and $21,028 in the Index. The September 1995 changes in this Fund's
investment
    policy limit the usefulness of this comparison. The returns shown do not
    reflect the deduction of income taxes that an investor could pay on income
    received or the sale of profitable investments.

Sextant Bond Income Fund vs. Salomon Broad Investment
      Grade Bond Index (unaudited)

Fund Average Annual Returns
    One Year 4.26%
    Five Year 7.65%
    Ten Year 7.51%

(graph omitted)



|14 |  | November 30, 2004
Annual Report
|-- |  | -------------------------------

SEXTANT BOND INCOME FUND
EXPENSES
          (unaudited)As a Sextant Bond Income Fund shareowner, you incur ongoing
costs, including management fees and other fund expenses. Unlike many mutual
funds, you do not incur sales charges (loads) on purchase payments, reinvested
dividends, or other distributions. Nor do you incur redemption fees, exchange
fees, or fees related to Individual Retirement Accounts. You may incur fees
related to extra services requested by you for your account, such as bank
wires.**EXAMPLE**
      The example is based on an investment of $1,000 invested at the beginning
of the fiscal year and held for the entire year [Friday, November 28, 2003 to
Tuesday, November 30, 2004].**ACTUAL EXPENSES**
        The first line provides information about actual account values and
actual expenses. You may use the information in this line, together with the
amount you have invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, a $9,400
account value divided by $1,000 = 9.4), then multiply the result by the number
in the first line under heading entitled “Expenses Paid During Year”
to estimate the expenses you paid on your account during this fiscal year. The
Fund also charges the following fees for extra services rendered on request,
which you may need to add to determine your total expenses: $10 per checkbook,
$25 per bank wire, $15 per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**
        The second line provides information about hypothetical account values
and hypothetical expenses based on the Fund’s actual expense ratio (based
on the last six months) and an assumed rate of return of 5% per year before
expenses, which is not the Fund’s actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the year. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareowner reports of the other funds. You may wish to add other
fees that are not included in the expenses shown in the table, such as IRA fees
(there are no IRA fees with the Sextant Funds), and charges for extra services
such as check writing and bank wires.
    Please note that the expenses shown are meant to highlight your ongoing
costs only and do not reflect any transactional costs, such as sales charges
(loads), redemption fees, or exchange fees (note that the Sextant Funds do not
have any such transactional costs). Therefore, the second line is useful in
comparing ongoing costs only, and may not help you determine the relative total
costs of owning different funds.
    
    SEXTANT BOND INCOME
FUND
    Beginning Account
Value
          [Friday, November 28, 2003]
        Ending Account Value

        [Tuesday, November 30, 2004]
        Expenses Paid During
Period*Actual
        (4.26% return 
        after expenses)
        $1,000.00
        $1,042.60
        $9.40Hypothetical
        (5% return 
        before expenses)
        $1,000.00
        $1,040.80
        $9.39* Expenses are equal to Sextant Bond Income Fund's
annualized
        expense ratio of 0.92% (based on the most recent semi-annual period of
        June 1, 2004 through November 30, 2004), multiplied by the average
account
        value of $1,021.30 over the period.
    
    November 30, 2004
Annual Report
        
        15


|INVESTMENTS |  | SEXTANT
              GROWTH FUND(graphic
omitted)
|----------- |  | --------------------------------------------------

|                                    |                  | As of November 30,
2004
|----------------------------------- | ---------------- | -----------------------
|Issue                               | Number of
Shares | Cost                   
|Common Stocks                       |                  |                        
|                                    |                  |                        
|Banking                             |                  |                        
|Frontier Financial                  | 4,000            | $90,207                
|Washington Mutual                   | 6,750            | 44,124                 
|                                    | SUB-TOTAL        | 134,331                
|Computers                           |                  |                        
|3 Com*                              | 16,000           | 96,576                 
|Adobe Systems                       | 4,800            | 50,490                 
|Apple Computer*                     | 5,500            | 97,170                 
|Earthlink*                          | 12,000           | 101,107                
|Hewlett-Packard                     | 4,000            | 81,320                 
|Intuit*                             | 3,000            | 131,758                
|Oracle*                             | 8,000            | 28,059                 
|Phoenix Technologies Ltd.*          | 3,062            | 29,148                 
|                                    | SUB-TOTAL        | 615,628                
|Construction                        |                  |                        
|Lowe's Companies                    | 4,000            | 135,141                
|Weyerhaeuser                        | 2,000            | 93,867                 
|                                    | SUB-TOTAL        | 229,008                
|Electronics                         |                  |                        
|Advanced Micro Devices*             | 10,000           | 41,708                 
|Agilent Technologies*               | 4,000            | 108,894                
|Harman International Industries     | 1,500            | 114,354                
|                                    | SUB-TOTAL        | 264,956                
|Food                                |                  |                        
|Performance Food Group*             | 3,000            | 96,917                 
|PepsiCo                             | 2,000            | 102,111                
|                                    | SUB-TOTAL        | 199,028                
|                                    |                  |                        
|Hotels & Motels                     |                  |                        
|Westcoast Hospitality*              | 20,000           | 138,152                
|                                    |                  |                        
|Investments                         |                  |                        
|Schwab (Charles)                    | 20,415           | 9,117                  
|                                    |                  |                        
|Machinery                           |                  |                        
|Regal-Beloit                        | 2,000            | 52,106                 
|                                    |                  |                        
|Medical                             |                  |                        
|Affymetrix*                         | 3,000            | 60,231                 
|Amgen*                              | 2,640            | 34,598                 
|Barr Laboratories*                  | 4,500            | 159,489                
|Bristol-Myers Squibb                | 4,500            | 121,892                
|Caremark Rx*                        | 4,000            | 92,592                 
|Ligand Pharmaceuticals*             | 5,000            | 56,430                 
|Lilly (Eli)                         | 2,000            | 165,241                
|Pharmaceutical Product Development* | 7,500            | 67,174                 
|                                    | SUB-TOTAL        | 757,647                
|Metal Ores                          |                  |                        
|Alcoa                               | 3,000            | 104,233                
|Phelps Dodge                        | 1,330            | 76,218                 
|                                    | SUB-TOTAL        | 180,451                
|Oil &Gas                            |                  |                        
|Noble*                              | 3,000            | 54,457                 
|                                    |                  |                        
|Publishing                          |                  |                        
|Dow Jones & Co.                     | 1,200            | 54,796                 
|Wiley (John) & Sons, Class A        | 3,400            | 74,233                 
|                                    | SUB-TOTAL        | 129,029                



|16 |  | November 30, 2004
              Annual Report
|-- |  | ---------------------------------------------

---

|INVESTMENTS |  | SEXTANT
              GROWTH FUND(graphic
omitted)
|----------- |  | --------------------------------------------------

|Issue                                 | Number of
Shares | Cost       | Market Value | Percentage
|------------------------------------- | ---------------- | ---------- | ------------ | ----------
|                                      |                  |            |              |           
|Retail                                |                  |            |              |           
|Bed Bath & Beyond*                    | 3,000            | $100,051   | $119,784     | 2.2%      
|                                      |                  |            |              |           
|Telecommunications                    |                  |            |              |           
|Sprint (FON Group)                    | 1,300            | 24,114     | 29,653       | 0.6%      
|Trimble Navigation                    | 4,500            | 106,214    | 142,065      | 2.7%      
|                                      | SUB-TOTAL        | 130,328    | 171,718      | 3.3%      
|                                      |                  |            |              |           
|Utilities                             |                  |            |              |           
|FPL Group                             | 2,200            | 134,107    | 154,726      | 2.9%      
|Idacorp                               | 4,000            | 105,499    | 128,880      | 2.4%      
|                                      | SUB-TOTAL        | 239,606    | 283,606      | 5.3%      
|                                      |                  |            |              |           
|Total Investments                     |                  | $3,233,895 | $5,304,461   | **99.5%** 
|**Other Assets (net of liabilities)** |                  |            | **26,554**   | **0.5%**  
|Total Net Assets                      |                  |            | $5,331,015   | **100.0%**
|                                      |                  |            |              |           
|*Non-income producing                 |                  |            |              |           





|November 30, 2004
Annual
            Report |  | 17
|------------------------------------------- |  | --

---

|FINANCIAL
HIGHLIGHTS |  | SEXTANT
GROWTH
                FUND(graphic
                omitted)
|-------------------- |  | --------------------------------------------------------------------

|Selected data per share of capital stock outstanding
      throughout the year | For Year Ended November 30,
|------------------------------------------------------------------------------ | ---------------------------

|                                                                 |  | 2004   | 2003    | 2002     | 2001    | 2000   
|---------------------------------------------------------------- |  | ------ | ------- | -------- | ------- | -------
|Net asset value at beginning of year                             |  | $12.91 | $10.64  | $11.90   | $13.16  | $12.68 
|Income from investment operations                                |  |        |         |          |         |        
|Net investment income                                            |  | 0.01   | (0.04)  | (0.05)   | (0.02)  | (0.07) 
|Net gains or losses on securities (both realized and
unrealized) |  | 1.45   | 2.31    | (1.21)   | (1.24)  | 1.36   
|Total from investment operations                                 |  | 1.46   | 2.27    | (1.26)   | (1.26)  | 1.29   
|Less distributions                                               |  |        |         |          |         |        
|Dividends (from net investment income)                           |  | (0.01) | -       | -        | -       | -      
|Distributions (from capital gains)                               |  | (0.16) | -       | -        | -       | (0.81) 
|Total distributions                                              |  | (0.17) | -       | -        | -       | (0.81) 
|Net asset value at end of period                                 |  | $14.20 | $12.91  | $10.64   | $11.90  | $13.16 
|Total Return                                                     |  | 11.35% | 21.31%  | (10.51)% | (9.57)% | 10.16% 
|                                                                 |  |        |         |          |         |        
|Ratios / Supplemental Data                                       |  |        |         |          |         |        
|Net assets ($000), end of year                                   |  | $5,331 | $4,732  | $3,373   | $3,792  | $3,862 
|**Ratio of expenses to average net
assets**                      |  |        |         |          |         |        
|Before  fee waivers                                              |  | 0.80%  | 1.20%   | 1.17%    | 0.84%   | 1.11%  
|After  fee waivers                                               |  | 0.78%  | 1.14%   | 1.11%    | 0.78%   | 1.05%  
|Ratio of net investment income to average net assets             |  | 0.12%  | (0.40)% | (0.48)%  | (0.18)% | (0.51)%
|                                                                 |  |        |         |          |         |        
|Portfolio turnover rate                                          |  | 8%     | 12%     | 15%      | 8%      | 20%    

|STATEMENT OF
ASSETS
              AND LIABILITIES
|-------------------------------------------------

|As of November 30, 2004                                                  |                                                  |            |           
|------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ----------
|                                                                         |                                                  |            |           
|Assets                                                                   |                                                  |            |           
|Investments (cost $3,233,895)                                            |                                                  | $5,304,461 |           
|Cash                                                                     |                                                  | 29,157     |           
|Dividends receivable                                                     |                                                  | 2,839      |           
|Insurance reserve premium                                                |                                                  | 1,214      |           
|                                                                         | Total Assets                                     |            | $5,337,671
|Liabilities                                                              |                                                  |            |           
|Due to affiliates                                                        |                                                  | 3,878      |           
|Other liabilities                                                        |                                                  | 2,778      |           
|                                                                         | Total Liabilities                                |            | 6,656     
|Net Assets                                                               |                                                  |            | $5,331,015
|                                                                         |                                                  |            |           
|Fund Shares Outstanding                                                  |                                                  |            | 375,529   
|                                                                         |                                                  |            |           
|Analysis of Net Assets                                                   |                                                  |            |           
|Paid in Capital (unlimited shares authorized, without par
        value) |                                                  | 3,259,272  |           
|Accumlated net investment income                                         |                                                  | 1,177      |           
|Unrealized net appreciation on investments                               |                                                  | 2,070,566  |           
|                                                                         | Net Assets applicable to Fund shares outstanding |            | $5,331,015
|Net Asset Value, Offering and Redemption price per
share                 |                                                  | $14.20    

(The accompanying notes are an integral
        part of these financial statements)

|18 |  | November 30, 2004
              Annual Report
|-- |  | ---------------------------------------------

---

|(Graphic
          Omitted)SEXTANT
GROWTH
          FUND |  | STATEMENT OF
              OPERATIONS
|-------------------------------------------------------- |  | -------------------------------------

|                                                        |                                  | For the year ended November 30, 2004
|------------------------------------------------------- | -------------------------------- | ------------------------------------
|Investment income                                       |                                  |                                     
|Dividend income                                         |                                  | $44,734                             
|Miscllaneous income                                     |                                  | 9                                   
|                                                        | Gross investment income          |                                     
|Expenses                                                |                                  |                                     
|Investment adviser and administration fees              |                                  | 18,702                              
|Audit fees                                              |                                  | 5,767                               
|Filing and registration fees                            |                                  | 4,108                               
|Legal fees                                              |                                  | 3,863                               
|Custodian fees                                          |                                  | 2,718                               
|Insurance                                               |                                  | 2,496                               
|Printing and postage                                    |                                  | 1,338                               
|Trustee fees                                            |                                  | 760                                 
|Other expenses                                          |                                  | 382                                 
|Total gross expenses                                    |                                  | 40,134                              
|Less custodian fees waived                              |                                  | (1,190)                             
|Net expenses                                            |                                  |                                     
|                                                        | Net investment income            |                                     
|Net realized gain on investments                        |                                  |                                     
|Proceeds from sales                                     |                                  | 354,534                             
|Less cost of securities sold (based on identified
cost) |                                  | 262,875                             
|                                                        | Realized net gain                |                                     
|Unrealized gain on investments                          |                                  |                                     
|End of year                                             |                                  | 2,070,566                           
|Beginning of year                                       |                                  | 1,615,709                           
|Increase in unrealized gain for the year                |                                  |                                     
|                                                        | Net realized and unrealized gain |                                     
|Net increase in net assets resulting from
operations    |                                  | $552,315                            

|STATEMENT
              OF CHANGES IN NET ASSETS |  | 
|------------------------------------------------ |  | 

|                                                     | Year ended    | Year ended   
|---------------------------------------------------- | ------------- | -------------
|                                                     | Nov. 30, 2004 | Nov. 30, 2003
|INCREASE IN NET ASSETS                               |               |              
|From Operations                                      |               |              
|Net investment income (loss)                         | $5,799        | $(15,357)    
|Net realized gain on investments                     | 91,659        | 29,017       
|Net increase  in unealized appreciation              | 454,857       | 815,393      
|Net increase in net assets                           | 552,315       | 829,053      
|                                                     |               |              
|Dividends to shareowners from                        |               |              
|Net investment income                                | (4,662)       | -            
|Capital gains distributions                          | (60,280)      | -            
|                                                     | (64,902)      | -            
|                                                     |               |              
|From fund share transactions                         |               |              
|Proceeds from sales of shares                        | 1,129,561     | 764,452      
|Value of shares issued in reinvestment of dividends  | 64,879        | -            
|                                                     | 1,194,440     | 764,452      
|Cost of shares redeemed                              | (1,082,914)   | (234,506)    
|Net increase  in net assets                          | 111,526       | 529,946      
|Total increase  in net assets                        | $598,939      | $1,358,999   
|                                                     |               |              
|NET ASSETS                                           |               |              
|Beginning of year                                    | 4,732,076     | 3,373,077    
|End of year                                          | $5,331,015    | $4,732,076   
|                                                     |               |              
|Undistributed net investment income                  | 1,177         | -            
|                                                     |               |              
|Shares of the fund sold and redeemed                 |               |              
|Number of shares sold                                | 87,757        | 70,509       
|Number of shares issued in reinvestment of dividends | 4,572         | -            
|                                                     | 92,329        | 70,509       
|Number of shares redeemed                            | (83,204)      | (21,038)     
|Net increase  in number of shares
outstanding        | 9,125         | 49,471       

(The accompanying notes are an integral
        part of these financial statements)

|November 30, 2004
Annual
            Report |  | 19
|------------------------------------------- |  | --

---

|DISCUSSION
            OF SEXTANT GROWTH FUND PERFORMANCE | (unaudited)
|--------------------------------------------------------- | -----------

FISCAL YEAR
2004
  For the fiscal year ending November 30, 2004, the Sextant Growth Fund gained
    11.18%. Stock prices continued to rise during 2004. For the fiscal year,
    the broad S&P 500 Index gained a similar 11.85%, while the
smaller-company
    NASDAQ Composite Index increased 7.50%. For the fiscal year, the Fund ranked
    in the top 49% of the 799 funds in the Morningstar Mid-cap Growth category.
    At November 30, 2004, the Fund's overall Morningstar category rating
    was 4-star, and “"above average" for returns and
“"below
    average" for risk (see Morningstar, page 35).

FACTORS AFFECTING
        PAST PERFORMANCE
  The economy in 2004 grew nicely.  Earnings per share of the S&P 500 Index
  equities look to increase 20% for the calendar year, the best performance
since
  1993. As illustrated in the table, our portfolio is heavily weighted with
computer
  (largest holdings Apple Computer and Adobe were up 221% and 47%, respectively)
  and medical (largest holding Pharmaceutical Product Development up 42%)
issues. Banking
  issues were relatively weak, impacted by rising interest rates.

**Industries**Computers
        22.3%Medical
        21.8%Electronics
        9.2%Banking
        8.2%Construction
        6.6%Utilities
        5.3%Metals
        4.3%Investments
        4.1%Food
        3.4%Telecommunications
        3.3%Publishing
        3.1%Oil & Gas
        2.7%Retail
        2.2%Miscellaneous (<2%)
        3.5%


Income is not a consideration in portfolio selection;
nevertheless,
    numerous companies in our portfolio instituted or increased dividend payouts
    in 2004.

LOOKING
FORWARD
    The volatility, risks and returns of the stock market will continue.  The
      poor stock market performances of 2000 through 2002 were reversed in 2003
      and 2004 as stocks again provided investors with strong investment
returns.
      We are expecting a relatively weak stock market in 2005, at least in the
      first half of the year.
    Remember, a long-term approach is the best opportunity to prosper: for the
    last ten years, the Fund provided a 12.10% average annualized total return
    and ranks in the top 28% of 159 funds in its Morningstar peer category*.

MANAGEMENT FEE
CALCULATIONS
  The Sextant Growth Fund calculates part of its management fee based on a
      comparison of the Fund’s return to the average return in
Morningstar's “Mid-Cap
      Growth” category. At November 30, 2004, the one-year return for this
      category average was +10.71%. Because the Fund's 12-month return
outperformed
      this average by less than 1% at November 30, 2004, the adviser earned no
      bonus or penalty fee for the month of December 2004. The Fund’s
total
      expense ratio, 0.78% was down substantially from



|20 |  | November 30, 2004
              Annual Report
|-- |  | ---------------------------------------------

---




COMPARISON TO
INDEX
  The line graph compares Sextant Growth Fund's performance to that of a
broad-based
    stock market index, the Standard & Poor's 500 Index. Comparison of any
    mutual fund to a market index must be 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 shareholders on a daily basis, and (5) provide a wide
range
    of services. The graph below compares $10,000 invested in the Fund at
November
    30, 1994 (ten years ago), compared to a similar amount invested in Standard
& Poor's
    500 Index. The graph shows that the investment in the Fund would have risen
    to $31,348 versus $30,678 in the Index. The 1995 changes in this
Fund’s
    investment objectives and policies limit the usefulness of this comparison.

Sextant Growth Fund vs. S&P 500 Index
(unaudited)

Fund Average Annual Returns
    One Year 11.35%
    Five Year 3.76%
    Ten Year 12.10%

(graph omitted)



|November
                30, 2004 Annual Report |  | 21
|----------------------------------------------- |  | --

---

SEXTANT GROWTH FUND
EXPENSESAs a Sextant Growth Fund shareowner, you incur ongoing costs,
including management fees and other fund expenses. Unlike many mutual funds, you
do not incur sales charges (loads) on purchase payments, reinvested dividends,
or other distributions. Nor do you incur redemption fees, exchange fees, or fees
related to Individual Retirement Accounts. You may incur fees related to extra
services requested by you for your account, such as bank wires.**EXAMPLE**
    The example is based on an investment of $1,000 invested at the beginning of
the fiscal year and held for the entire year [Friday, November 28, 2003 to
Tuesday, November 30, 2004].**ACTUAL EXPENSES**
      The first line provides information about actual account values and actual
      expenses. You may use the information in this line, together with the
amount
      you have invested, to estimate the expenses that you paid over the period.
      Simply divide your account value by $1,000 (for example, a $9,400 account
      value divided by $1,000 = 9.4), then multiply the result by the number
      in the first line under heading entitled “"Expenses Paid During
      Year" to estimate the expenses you paid on your account during this
      fiscal year. The Fund also charges the following fees for extra services
      rendered on request, which you may need to add to determine your total
      expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier
      delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**
      The second line provides information about hypothetical account values
      and hypothetical expenses based on the Fund's actual expense ratio (based
      on the last six months) and an assumed rate of return of 5% per year
before
      expenses, which is not the Fund's actual return. The hypothetical
      account values and expenses may not be used to estimate the actual ending
      account balance or expenses you paid for the year. You may use this
information
      to compare the ongoing costs of investing in the Funds and other fund.
      To do so, compare this 5% hypothetical example with the 5% hypothetical
      examples that appear in the shareowner reports of the other funds. You
      may wish to add other fees that are not included in the expenses shown
      in the table, such as IRA fees (there are no IRA fees with the Sextant
      Funds), and charges for extra services such as check writing and bank
wires.
  Please note that the expenses shown are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges (loads), redemption fees, or exchange fees (note that the Sextant
Funds do not have any such transactional costs). Therefore, the second line is
useful in comparing ongoing costs only, and may not help you determine the
relative total costs of owning different funds.
  SEXTANT GROWTH
FUND
    Beginning Account
Value [Friday, November 28, 2003]
        Ending Account Value

        [Tuesday, November 30, 2004]
        Expenses Paid During
Period*Actual
        (11.35% return 
        after expenses)
        $1,000.00
        $1,113.50
        $9.30Hypothetical
        (5% return 
        before expenses)
        $1,000.00
        $1,041.20
        $8.98* Expenses are equal to Sextant Growth Fund's annualized
        expense ratio of 0.88% (based on the most recent semi-annual period of
        June1, 2004 through November 30, 2004), multiplied by the average
account
        value of $1,059.40 over the period.
  
  22
      
      November 30, 2004 Annual Report


|INVESTMENTS |  | SEXTANT
INTERNATIONAL
              FUND(Graphic
              Omitted)
|----------- |  | -----------------------------------------------------------------------

|                               |                  |         | As of November 30,
2004
|------------------------------ | ---------------- | ------- | -----------------------
|Issue                          | Number of
Shares | Cost    | Market Value           
|Common Stocks                  |                  |         |                        
|                               |                  |         |                        
|Aircraft                       |                  |         |                        
|Embraer Aircraft ADR           | 1,713            | $38,169 | $47,913                
|                               |                  |         |                        
|Automotive                     |                  |         |                        
|Nissan Motor ADR               | 2,000            | 30,085  | 42,000                 
|                               |                  |         |                        
|Banking and Financial          |                  |         |                        
|Aegon NV ADR                   | 2,292            | 19,736  | 28,398                 
|AXA ADS                        | 3,000            | 59,784  | 70,350                 
|Banco Bilbao Vizcaya ADS       | 1,800            | 7,702   | 29,484                 
|ING Groep ADS                  | 1,523            | 36,134  | 41,776                 
|Toronto-Dominion Bank          | 1,400            | 18,159  | 56,294                 
|                               | SUB-TOTAL        | 141,515 | 226,302                
|Building Materials             |                  |         |                        
|CRH plc ADR                    | 2,000            | 23,075  | 50,040                 
|Hanson plc ADR                 | 1,100            | 33,055  | 44,242                 
|James Hardie Industries NV ADS | 1,000            | 25,561  | 22,350                 
|                               | SUB-TOTAL        | 81,691  | 116,632                
|Computers                      |                  |         |                        
|Business Objects  ADS*         | 6,000            | 19,570  | 139,680                
|Dassault Systems ADR           | 1,000            | 28,380  | 51,590                 
|Sina*                          | 1,200            | 28,325  | 44,316                 
|                               | SUB-TOTAL        | 76,275  | 235,586                
|Consumer Products              |                  |         |                        
|Allied Domecq plc              | 1,200            | 40,576  | 48,024                 
|Coca-Cola Femsa ADS            | 1,500            | 9,750   | 32,730                 
|                               | SUB-TOTAL        | 50,326  | 80,754                 
|Electronics                    |                  |         |                        
|Epcos AG ADS                   | 2,500            | 57,307  | 39,800                 
|Sony ADR                       | 1,000            | 47,517  | 36,370                 
|                               | SUB-TOTAL        | 104,824 | 76,170                 
|Hotels                         |                  |         |                        
|Fairmont Hotels & Resorts      | 1,100            | 24,385  | 34,122                 
|                               |                  |         |                        
|Medical-Drugs                  |                  |         |                        
|Glaxo Smithkline plc ADR       | 400              | 9,800   | 17,016                 
|Novartis AG ADR                | 1,000            | 45,177  | 48,050                 
|Serono SA ADR                  | 2,000            | 29,761  | 32,160                 
|                               | SUB-TOTAL        | 84,738  | 97,226                 
|Metals & Mining                |                  |         |                        
|Potash Corp. of Saskatchewan   | 1,000            | 34,234  | 76,580                 
|Rio Tinto plc ADS              | 500              | 31,175  | 58,795                 
|                               | SUB-TOTAL        | 65,409  | 135,375                

|November 30, 2004 Annual Report |  | 23
|------------------------------- |  | --

---

|(Graphic
          Omitted)SEXTANT
          INTERNATIONAL FUND |  | INVESTMENTS
|--------------------------------------------------------------- |  | -----------

|Issue                                 | Number of
Shares | Cost       | Market Value | Country   | Percentage
|------------------------------------- | ---------------- | ---------- | ------------ | --------- | ----------
|                                      |                  |            |              |           |           
|Oil & Gas Production                  |                  |            |              |           |           
|EnCana                                | 1,000            | $35,020    | $57,030      | Canada    | 2.8%      
|Repsol-YPF ADR                        | 2,000            | 43,592     | 48,720       | Spain     | 2.4%      
|Total Fina Elf ADR                    | 500              | 21,864     | 54,800       | France    | 2.7%      
|                                      | SUB-TOTAL        | 100,476    | 160,550      |           | 7.9%      
|Paper Products                        |                  |            |              |           |           
|Metso ADS                             | 2,100            | 22,802     | 33,810       | Finland   | 1.6%      
|UPM-Kymmene Oyj ADS                   | 2,000            | 34,399     | 45,260       | Finland   | 2.2%      
|                                      | SUB-TOTAL        | 57,201     | 79,070       |           | 3.8%      
|Photographic Equipment                |                  |            |              |           |           
|Canon ADR                             | 1,000            | 23,426     | 50,170       | Japan     | 2.4%      
|Fuji Photo Film ADR                   | 400              | 10,050     | 14,092       | Japan     | 0.7%      
|                                      | SUB-TOTAL        | 33,476     | 64,262       |           | 3.1%      
|Real Estate                           |                  |            |              |           |           
|Intrawest                             | 1,200            | 21,840     | 24,000       | Canada    | 1.2%      
|                                      |                  |            |              |           |           
|Telecommunications                    |                  |            |              |           |           
|America Movil ADR                     | 2,000            | 29,725     | 93,420       | Mexico    | 4.6%      
|BCE                                   | 1,600            | 30,119     | 38,800       | Canada    | 1.9%      
|British Sky Broadcasting ADS          | 450              | 11,063     | 19,152       | UK        | 0.9%      
|PT Indosat ADR                        | 1,000            | 20,952     | 31,840       | Indonesia | 1.6%      
|SK Telecom ADS                        | 1,500            | 27,761     | 33,975       | Korea     | 1.6%      
|Telefonica ADS                        | 586              | 12,058     | 30,794       | Spain     | 1.5%      
|Telefonos de Mexico ADS               | 1,000            | 35,170     | 35,010       | Mexico    | 1.7%      
|                                      | SUB-TOTAL        | 166,848    | 282,811      |           | 13.8%     
|Transportation                        |                  |            |              |           |           
|Canadian Pacific Railway Ltd.         | 1,200            | 20,338     | 39,288       | Canada    | 1.9%      
|Lan Airlines ADS                      | 3,500            | 24,636     | 95,585       | Chile     | 4.7%      
|                                      | SUB-TOTAL        | 44,974     | 134,873      |           | 6.6%      
|Utilities-Electric                    |                  |            |              |           |           
|Enel ADS                              | 800              | 35,372     | 35,752       | Italy     | 1.7%      
|Enersis ADS                           | 4,000            | 37,125     | 29,880       | Chile     | 1.5%      
|Korea Electric Power ADS              | 2,000            | 31,961     | 26,960       | Korea     | 1.3%      
|                                      | SUB-TOTAL        | 104,458    | 92,592       |           | 4.5%      
|Utilities-Gas                         |                  |            |              |           |           
|Transport de Gas del Sur ADR*         | 1,500            | 18,808     | 7,785        | Argentina | 0.4%      
|                                      |                  |            |              |           |           
|Total Investments                     |                  | $1,245,498 | $1,938,023   |           | **94.4%** 
|**Other Assets (net of liabilities)** |                  |            | **114,539**  |           | **5.6%**  
|Total Net Assets                      |                  |            | $2,052,562   |           | **100.0%**
|                                      |                  |            |              |           |           
|* Non-income producing                |                  |            |              |           |           



|24 |  | November 30, 2004 Annual
Report
|-- |  | -------------------------------

---

FINANCIAL HIGHLIGHTS
        
        SEXTANT
                INTERNATIONAL FUND(graphic
                omitted)  Selected data per share of capital stock
outstanding
            throughout each yearFor Year Ended November 30,2004
            2003
            2002
            2001
            2000Net asset value at beginning of year
            
            $8.05
            $6.07
            $7.24
            $8.52
            $8.32Income from investment operationsNet investment income
            
            0.03
            0.05
            0.02
            0.04
            0.43Net gains or losses on securities (both realized
              and unrealized)
            
            1.35
            1.97
            (1.16)
            (1.30)
            0.20Total from investment operations
            
            1.38
            2.02
            (1.14)
            (1.26)
            0.63Less distributionsDividends (from net investment income)
            
            (0.03)
            (0.04)
            (0.03)
            (0.02)
            (0.43)Distributions (from capital gains)
            
            -
            -
            -
            -
            -Total distributions
            
            (0.03)
            (0.04)
            (0.03)
            (0.02)
            (0.43)Net asset value at end of year
            
            $9.40
            $8.05
            $6.07
            $7.24
            $8.52Total return
            
            17.11%
            33.23%
            (15.80)%
            (14.80)%
            7.62%Ratios/supplemental dataNet assets ($000), end of year
            
            $2,053
            $1,650
            $1,150
            $1,445
            $1,736**Ratio of expenses to average net
assets**Before  fee waivers
            
            1.22%
            1.29%
            1.36%
            1.37%
            1.36%After  fee waivers
            
            1.10%
            1.10%
            1.17%
            1.17%
            1.20%Ratio of net investment income after waiver to
average
              net assets
            
            0.31%
            0.75%
            0.20%
            0.34%
            4.74%Portfolio turnover rate
            
            7%
            4%
            4%
            6%
            11%


|STATEMENT OF
ASSETS
              AND LIABILITIES
|-------------------------------------------------

|                                                                         |                                                  |            |           
|------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ----------
|As of November 30, 2004                                                  |                                                  |            |           
|                                                                         |                                                  |            |           
|Assets                                                                   |                                                  |            |           
|Investments (cost $1,245,498)                                            |                                                  | $1,938,023 |           
|Cash                                                                     |                                                  | 117,060    |           
|Dividends receivable                                                     |                                                  | 2,587      |           
|                                                                         | Total Assets                                     |            | $2,057,670
|                                                                         |                                                  |            |           
|Liabilities                                                              |                                                  |            |           
|Other Liabilities                                                        |                                                  | 4,114      |           
|Due to affiliates                                                        |                                                  | 994        |           
|                                                                         | Total Liabilities                                |            | 5,108     
|                                                                         |                                                  |            |           
|Net Assets                                                               |                                                  |            | $2,052,562
|                                                                         |                                                  |            |           
|Fund shares outstanding                                                  |                                                  |            | 218,259   
|                                                                         |                                                  |            |           
|Analysis of Net Assets                                                   |                                                  |            |           
|Paid in Capital (unlimited shares authorized, without par
        value) |                                                  | 1,533,361  |           
|Accumulated net investment income                                        |                                                  | 2,020      |           
|Accumulated net realized loss                                            |                                                  | (175,344)  |           
|Unrealized net appreciation on investments                               |                                                  | 692,525    |           
|                                                                         | Net Assets applicable to Fund shares
outstanding |            | $2,052,562
|                                                                         |                                                  |            |           
|Net Asset Value, Offering and Redemption price per
share                 |                                                  | $9.40     



(The accompanying notes are an integral
        part of these financial statements)

|November 30, 2004 Annual
Report |  | 25
|------------------------------- |  | --

---

|(graphic
          omitted)SEXTANT
          INTERNATIONAL FUND |  | STATEMENT OF
              OPERATIONS
|--------------------------------------------------------------- |  | -------------------------------------

|                                                        |                                  | For the year ended November 30, 2004
|------------------------------------------------------- | -------------------------------- | ------------------------------------
|                                                        |                                  |                                     
|Investment income                                       |                                  |                                     
|Dividend income (net foreign taxes of $4,734)           |                                  | $27,143                             
|Miscellaneous income                                    |                                  | 26                                  
|                                                        | Gross investment income          |                                     
|                                                        |                                  |                                     
|Expenses                                                |                                  |                                     
|Investment adviser and administration fees              |                                  | 11,159                              
|Filing and registration fees                            |                                  | 4,057                               
|Custodian fees                                          |                                  | 2,917                               
|Audit fees                                              |                                  | 2,204                               
|Legal fees                                              |                                  | 1,500                               
|Insurance                                               |                                  | 870                                 
|Printing and postage                                    |                                  | 467                                 
|Trustee fees                                            |                                  | 327                                 
|Other expenses                                          |                                  | 139                                 
|Total gross expenses                                    |                                  | 23,640                              
|Less custodian fees waived                              |                                  | (2,405)                             
|Net expenses                                            |                                  |                                     
|                                                        | Net investment income            |                                     
|                                                        |                                  |                                     
|Net realized gain on investments                        |                                  |                                     
|Proceeds from sales                                     |                                  | 121,344                             
|Less cost of securities sold (based on identified
cost) |                                  | 120,884                             
|                                                        | Realized net gain                |                                     
|                                                        |                                  |                                     
|Unrealized gain on investments                          |                                  |                                     
|End of year                                             |                                  | 692,525                             
|Beginning of year                                       |                                  | 413,043                             
|Increase in unrealized gain for the year                |                                  |                                     
|                                                        | Net realized and unrealized gain |                                     
|                                                        |                                  |                                     
|Net increase in net assets resulting from
operations    |                                  | $285,876                            



|STATEMENT
            OF CHANGES IN NET ASSETS | 
|---------------------------------------------- | 

|                                                     | Year ended    | Year ended   
|---------------------------------------------------- | ------------- | -------------
|                                                     | Nov. 30, 2004 | Nov. 30, 2003
|INCREASE  IN NET ASSETS                              |               |              
|From Operations                                      |               |              
|Net investment income                                | $5,934        | $9,508       
|Net realized gain (loss) on investments              | 460           | (30,670)     
|Net increase  in unealized appreciation              | 279,482       | 418,990      
|Net increase  in net assets                          | 285,876       | 397,828      
|                                                     |               |              
|Dividends to shareowners from                        |               |              
|Net investment income                                | (5,876)       | (7,547)      
|                                                     |               |              
|From fund share transactions                         |               |              
|Proceeds from sales of shares                        | 652,936       | 222,528      
|Value of shares issued in reinvestment of dividends  | 5,863         | 7,529        
|                                                     | 658,799       | 230,057      
|Cost of shares redeemed                              | (535,868)     | (121,076)    
|Net increase in net assets from share transactions   | 122,931       | 108,981      
|Total increase in net assets                         | $402,931      | $499,262     
|                                                     |               |              
|NET ASSETS                                           |               |              
|Beginning of year                                    | 1,649,631     | 1,150,369    
|End of year                                          | $2,052,562    | $1,649,631   
|                                                     |               |              
|Undistributed net investment income                  | -             | 1,962        
|                                                     |               |              
|Shares of the fund sold and redeemed                 |               |              
|Number of shares sold                                | 75,589        | 32,286       
|Number of shares issued in reinvestment of dividends | 624           | 935          
|                                                     | 76,213        | 33,221       
|Number of shares redeemed                            | (62,906)      | (17,938)     
|Net increase  in number of shares outstanding        | 13,307        | 15,283       

(The accompanying notes are an integral part of these
          financial statements)

|26 |  | November 30, 2004 Annual
Report
|-- |  | -------------------------------

---

|DISCUSSION
              OF SEXTANT INTERNATIONAL FUND PERFORMANCE | (unaudited)
|------------------------------------------------------------------ | -----------

FISCAL YEAR
2004
    For the fiscal year ended November 30, 2004, the Sextant International Fund
      returned +17.11%. The comparable AMEX International Index did better,
gaining
      23.87%. At the end of this latest fiscal year, the Fund ranked in the 87th
      percentile of the 489 funds in Morningstar’s peer Foreign Large
Blend
      category†. Still, the Fund’s overall Morningstar category
rating
      was 4-star, and “average” for returns and “high”
for
    risk (see Morningstar, page 35).

FACTORS AFFECTING
          PAST PERFORMANCE
    The US dollar dropped precipitously during 2004, a risk that our foreign
investments mitigates for US investors.  Fund is diversified across industries
and countries, as shown in these tables:



**Industries**
          
          
          **Countries**Telecommunications
          13.8%
          
          Canada
          15.8%Computers
          11.5%
          
          France
          15.3%Banking
          11.0%
          
          United Kingdom
          9.1%Oil & Gas
          7.9%
          
          Mexico
          7.8%Metals & Mining
          6.6%
          
          Japan
          6.9%Transportation
          6.6%
          
          Chile
          6.1%Building Materials
          5.7%
          
          Cash
          5.6%Cash
          5.6%
          
          Spain
          5.3%Medical - Drugs
          4.7%
          
          Switzerland
          3.9%Utilities - Electric
          4.5%
          
          Finland
          3.8%Consumer Products
          3.9%
          
          Netherlands
          3.4%Paper & Products
          3.8%
          
          Korea
          2.9%Electronics
          3.7%
          
          Ireland
          2.4%Photography
          3.1%
          
          Brazil
          2.3%Aircraft
          2.3%
          
          China
          2.1%Automotive
          2.0%
          
          Other (under 2%)
          7.3%Other (under 2%)
          3.3% Our portfolio is more heavily invested in Europe and Canada than Asia,
        which generally hurt results. Commodity prices increased, bringing
substantial
        appreciation to our cyclical and resource-based issues. Computer issues
        did well, but telecommunications (our largest industry) underperformed.
        Banks also did poorly as interest rates increased and insurers suffered
        from hurricanes and other losses. Oil and gas producers appreciated
sharply,
        in response to the rise in energy prices.




|November 30, 2004 Annual Report |  | 27
|------------------------------- |  | --

---

LOOKING
FORWARD
The Sextant International Fund is broadly diversified in growing companies
headquartered outside the United States. We continue our focus on larger
companies, which tend to be more stable over time.



MANAGEMENT FEE
CALCULATIONSThe Sextant International Fund calculates part of its
management
      fee based on a comparison of the Fund’s return to the average return
      of the Morningstar fund category “Foreign Large Blend”. At
      November 30, 2004, the one-year return for this category average was
21.91%.
      Because the Fund's 12-month return underperformed this average by more
      than 4% at November 30, 2004, a performance penalty of 0.30% was
subtracted
      from the basic 0.60% annual management fee for the month of December 2004.
      The total expense ratio remained unchanged from the prior year at
1.10%.

COMPARISON TO INDEX
    Comparison of any fund to an index must be made bearing in mind that the
      Index is unmanaged, and expense-free. The graph below compares $10,000
      invested in the Fund at its inception, compared to a similar amount
invested
      in the AMEX International Index. This capitalization-weighted index
averages
      50 American Depository Receipts (ADRs) of large worldwide companies, and
      reflects the types of securities in which Sextant International Fund
invests.
      The graph shows that a $10,000 investment made on September 1995 would
      have risen to $20,869 in the Fund and $14,645 in the Index.

Sextant International Fund vs. AMEX International Index
(unaudited)

Fund Average Annual Returns
      One Year 17.11%
      Five Year 3.79%
      Since Inception 8.34%

(graph omitted)





|28 |  | November 30, 2004 Annual Report
|-- |  | -------------------------------

---

SEXTANT INTERNATIONAL
FUND EXPENSESAs a Sextant International Fund shareowner, you incur ongoing
costs, including management fees and other fund expenses. Unlike many mutual
funds, you do not incur sales charges (loads) on purchase payments, reinvested
dividends, or other distributions. Nor do you incur redemption fees, exchange
fees, or fees related to Individual Retirement Accounts. You may incur fees
related to extra services requested by you for your account, such as bank
wires.

**EXAMPLE**
  The example is based on an investment of $1,000 invested at the beginning of
the fiscal year and held for the entire year [Friday, November 28, 2003 to
Tuesday, November 30, 2004].

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

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

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

SEXTANT INTERNATIONAL
FUND

Beginning Account
Value [Friday, November 28, 2003]
        Ending Account Value

          [Tuesday, November 30, 2004]
        Expenses Paid During
Period*Actual
          (17.11% return 
          after expenses)
        $1,000.00
        $1,171.10
        $11.94Hypothetical
          (5% return 
          before expenses)
        $1,000.00
        $1,039.00
        $11.44




* Expenses are equal to Sextant International
      Fund's annualized expense ratio of 1.10% (based on the most recent
semi-annual
      period of June 1, 2004 through November 30, 2004), multiplied by the
average
      account value of $1,085.55 over the period.



|November 30, 2004 Annual Report |  | 29
|------------------------------- |  | --

---

|NOTES
                TO FINANCIAL STATEMENTS
|---------------------------------------------

|Note 1 -Organization
        Saturna Investment Trust (the “Trust”) was established under
        Washington State Law as a Business Trust on February 20, 1987. The Trust
        is registered as a no-load, open-end series investment company under
        the Investment Company Act of 1940, as amended. Five portfolio series
        have been created to date: Sextant Short-Term Bond Fund, Sextant Bond
        Income Fund, Sextant Growth Fund, and Sextant International Fund (the
“Funds”),
        and Idaho Tax-Exempt Fund, distributed through a separate prospectus
        and the results of which are contained in a separate report. 
        The investment goals of the Growth and International Funds are long-term
        capital growth. The investment goals of the Bond Income and Short-Term
        Bond Funds are current income, with Short-Term Bond having the
additional
        goal of capital preservation.Note 2 -Significant
Accounting
                PoliciesThe following is a summary of the significant
        accounting policies followed by the Funds.***Security Valuation:***
          Investments in securities traded on a national securities exchange
            (or reported on the NASDAQ national market) are stated at the last
            reported sales price on the day of valuation; other securities
traded
            in the over-the-counter market and listed securities for which no
            sale was reported on that date are stated at the last quoted bid
            price. Securities for which quotations are not readily available
            are adjusted to fair value as determined in good faith under the
            supervision of the trustees. 
          Fixed-income securities for which there are no publicly available
market
          quotations are valued using a matrix based on maturity, quality, yield
          and similar factors, which are compared periodically to multiple
dealer
          bids and adjusted by the adviser under fair value policies established
          by the Trustees. The ability of issuers of debt securities held by
          the Funds to meet their obligations may be affected by economic and
          political developments in a specific country or region.***Federal income taxes:***
          The Funds policies are to continue to comply with the requirements
          of the Internal Revenue Code applicable to regulated investment
companies
          and to distribute all their taxable income to their shareowners.
Therefore,
          no provisions for Federal income taxes are required. ***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.***Dividends and distributions to
shareowners:***
          Dividends and distributions to shareowners, which are determined in
          accordance with income tax regulations, are recorded on | the ex-dividend date. For the Sextant Short-Term Bond
          Fund and Sextant Bond Income Fund, dividends are paid daily and
distributed
          on the last business day of each month. For the Sextant Growth Fund
          and Sextant International Fund, dividends are payable at the end of
          each November. Shareowners electing to reinvest dividends and
distributions
          purchase additional shares at the net asset value on the payable date.
***Use of Estimates:***
          The preparation of financial statements in conformity with accounting
          principles generally accepted in the United States of America requires
          management to make estimates and assumptions that affect the reported
          amounts of assets and liabilities and disclosure of contingent assets
          and liabilities at the date of the financial statements and the
reported
          amounts of increases and decreases in net assets from operations
during
          the reporting period. Actual results could differ from those
estimates.***Other:***
          The cost of securities is the same for accounting and Federal income
          tax purposes. Securities transactions are recorded on trade date.
..
          Interest income is recognized on an accrual basis. Discounts and
premiums
          on securities purchased are amortized, over the lives of the
respective
          securities. Cash dividends from equity securities are recorded as
income
          on the ex-dividend date. 
          Expenses incurred by the Trust on behalf of the Fund (e.g.,
professional
          fees) are allocated to the Fund and the other Funds of the Trust on
          the basis of relative daily average net assets. The Adviser has agreed
          to certain limits on expenses, as described below.Note 3 -Transactions with
                Affiliated PersonsUnder a contract approved by shareowners on
                        September 28, 1995, Saturna Capital Corporation provides
                        investment advisory services and certain other
administrative
                        and distribution services to conduct Trust business.
                        Each of the Funds pays the Adviser a base Investment

                        Advisory and Administrative Services Fee of .60% of
average
                        net assets per annum, payable monthly. 
                        The base Advisory Fee is subject to adjustment up or
                        down depending on the investment performance of the Fund
                        relative to a specified index. Performance Adjustment
                        for Sextant Short-Term Bond Fund and Sextant Bond Bond
                        Income Fund: 
For each month in which either of these Funds’ 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
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|30 |  | November 30,
                2004 Annual Report
|-- |  | -----------------------------------------------

---

|more, then the adjustment is at the annual rate of .20%.

          Performance adjustment for Sextant Growth Fund and Sextant
International
            Fund: 
For each month in which either of these 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 but less than 4%, then
the adjustment is at the annual rate of .20%. 
If the outperformance or underperformance is 4% or more, the adjustment is at
an annual rate of .30%.
The Adviser has voluntarily undertaken to limit expenses of Sextant Short-Term
Bond Fund to 0.60% through March 31, 2005 and waives its investment advisory
and administrative fee as to Sextant Short-Term Bond Fund and Sextant Bond
Income
Fund completely so long as assets of either Fund are less than $2 million.
For the year ended November 30, 2004, Sextant Short-Term Bond Fund incurred
advisory
expenses of $15,034. Sextant Bond Income Fund and Sextant Growth Fund incurred
advisory expenses of $10,560 and $19,932, respectively. Sextant International
Fund incurred advisory expenses of $11,159.
In accordance with the expense waiver noted above, for the year ended November
30, 2004, Saturna Capital waived $11,532 of the Sextant Short-Term Bond Fund
advisory fee.
In accordance with the Funds’ custodian agreements with National City Bank
Indiana, for the year ended November 30, 2004, custodian fees for Short-Term
Bond, Bond Income, Growth, and International were $2,047, $667, $2,420, and
$2,405,
respectively. The custodian waived its fees for earnings credits.
One trustee, who also serves as the president of the Trust, is a director and
president of the Adviser. On November 30, 2004, the trustees, officers and their
immediate families as a group owned 26.7%, 18%, 15.2% and 29% of the outstanding
shares of Short-Term Bond, Bond Income, Growth and International,
respectively.
The four unaffiliated trustees receive $200 per Board or committee meeting
attended,
plus travel expenses. The Trust paid the Independent Trustees $2,400 to attend
meetings during the fiscal year. New regulations in 2004 required the Trust to
designate a Chief Compliance Officer; Mr. Winship was retained by the Trust and
paid $6,250 during the fiscal year. The other officers are paid by Saturna
Capital,
and not the Trust. | Saturna Brokerage Services, Inc. (a discount brokerage
            subsidiary of Saturna Capital Corporation) is a registered as a
broker-dealer
            and acts as distributor without compensation. 
            Saturna Brokerage Services is the primary stockbroker used to effect
            portfolio transactions for Sextant Growth Fund and Sextant
International
            Fund, and was paid $2,959 and $977, respectively in commissions at
            discount rates during the year ended November 30, 2004. The adviser
            has undertaken to waive all brokerage commissions charged by its
            affiliate in calendar 2005.
          Note 4 -Federal Income
                  TaxesAt November 30, 2004, Short-Term Bond had capital loss
carryforwards
          of $33,945, of which $766 expires in 2005, $4,467 expires in 2007,
          $9,191 expires in 2008, $15,099 expires in 2009 and $4,422 expires
          in 2011; Bond Income had capital loss carryforwards of $33,841, of
          which $11,717 expires in 2005, $5,730 expires in 2007, $2,141 expires
          in 2009 and $14,253 expires in 2010; and International had capital
          loss carryforwards of $175,344, of which $1,110 expires in 2008,
$72,857
          expires in 2009, $70,706 expires in 2010 and $30,671 expires in 2011,
          subject to regulation. Prior to their expiration, such loss
carryforwards
          may be used to offset future net capital gains realized for federal
          income tax purposes.
          For the year ended November 30, 2004, the undistributed net investment
          income on a tax basis for the Short-Term Fund, Bond Income Fund,
Growth
          Fund, and International Fund was $0, $0, $1,177, and $2,020,
respectively.
          Note 5 -InvestmentsDuring the year ended November 30, 2004, Bond Income
pur-chased
            $438,158 of securities and sold $0 of securities. Comparable figures
            for Short-Term Bond are $843,188 purchased $802,812 sold; for Growth
            $1,058,444 and $354,534; and for International, $263,949 and
$121,344.Note 6 -Distribution to
                  shareholders:The tax character of distributions paid during the year
          ended November 30, 2004 and 2003 were as follows:
          2004
            Short-Term Bond Fund, Ordinary income: $90,914
            Bond Income Fund, Ordinary income: $111,643
            Growth Fund, Ordinary income: $4,622; Capital gains: $60,280
            International Fund, Ordinary income: $5,876
          2003
Short-Term Bond Fund, Ordinary income: $101,962
Bond Income Fund, Ordinary income: $97,200
Growth Fund, Ordinary income: -; Capital gains: -
International Fund, Ordinary income: $7,547
          (continued on next page)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|November 30, 2004
Annual
            Report |  | 31
|------------------------------------------- |  | --

---

Note 6 -continued

As of November 30, 2004, components of distributable earnings
    on a tax basis were as follows:

Short-Term Bond
        Bond Income
        Growth
        InternationalCost of investments
        $1,911,482
        $2,379,701
        $3,233,895
        $1,245,498Gross tax unrealized
appreciation
        $21,029
        $168,333
        $2,292,268
        $781,803Gross tax unrealized
depreciation
        (15,680)
        (7,805)
        (221,702)
        (89,278)Net tax unrealized
appreciation
        $5,349
        $160,528
        $2,070,566
        $692,525Undistributed ordinary
income
        —
        —
        1,177
        2,020Undistributed long-term
capital gain (loss)
        (33,945)
        (33,841)
        —
        (175,344)Total distributable
earnings
        (33,945)
        (33,841)
        1,177
        (173,324)Total accumulated
earnings/(losses)
        $ (28,596)
        $126,687
        $2,071,743
        $519,201


RENEWAL OF INVESTMENT ADVISORY
CONTRACTS
  (unaudited)

On September 20, 2004, the trustees of Saturna Investment
Trust
    approved continuation of the four Sextant Fund investment advisory and
administrative
    services agreements with Saturna Capital Corporation. In doing so, the Board
    considered a number of factors and made specific determinations relevant
    to that approval.
  In addition to information provided throughout the year, the trustees utilized
  a comparison of performance and fees of all funds in each of the Sextant
Morningstar
  categories. The trustees found such information helpful in establishing
expectations
  regarding the performance of the adviser and whether to continue the advisory
  contracts.
  In their review, the trustees noted that the Funds offer a full range of
high-quality
  investor services. An important factor in the consideration by the trustees
  was the adviser’s ability and commitment to internally perform
shareowner
  servicing, administration, accounting, marketing and distribution to maintain
  quality servicing at a reasonable expense.
  The trustees found that the investment performance of each of the Funds, both
  in absolute numbers and relative to funds in their Morningstar categories,
  was good. This was confirmed by their current Morningstar ratings.
  The trustees reviewed the fees and expenses of the Funds. They noted that the
  performance-based advisory fees are unusual in the industry and very fair and
  reasonable to shareowners. They considered the fees charged by the adviser
  to other kinds of accounts and the different services provided to those
accounts.
  In addition, the trustees found the expense ratios less than those of similar
  funds and to be advantageous to shareowners given the sizes of the funds,
services
  provided and expenses incurred. They took into consideration the
adviser’s
  avoidance of operational problems, such as those publicized at other mutual
  funds in the last year. They noted that various Fund expenses, outside the
  adviser’s control, were rising due to new mutual fund industry
regulations.
  The trustees found that the Sextant Funds continue to operate at a substantial
  cost to the adviser. They know the adviser is relatively small, operates
roughly
  at break-even, and has a dedicated staff working at considerably less than
  standard industry compensation levels. The trustees agreed that given the
small
  size of the Funds, the fall-out benefits (such as discount brokerage
commissions
  earned by Saturna Brokerage Services) were not significant.



|32 |  | November 30, 2004
        Annual Report
|-- |  | ---------------------------------------

---

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Trustees and
Officers (unaudited)                                  |                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------
|Name and (age)
        Address                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Position(s) held with
      Trust and Length of 
      Time Served | Principal Occupation(s) 
      during past 5 Years                                                                   
|INDEPENDENT TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|A. Herbet Ershig (66)
      22 Shorewood Drive
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Independent Trustee
        since 1997                             | President (now retired), Ershigs,
Inc.
        (industrial fabrication)                                              
|Gary A. Goldfogel (46)
      1500 N. State Street
      Bellingham, WA 98226                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Independent Trustee
        since 1995                             | Medical Examiner (pathologist)
        Owner, Avocet Environmental Testing (laboratory)                              
|John E. Love (72)
      1002 Spokane Street
      Garfield, WA 99130                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Chairman;Independent Trustee
        since 1987                    | Owner, J.E. Love Co., (agricultural equipment
manufacturer)                                                          
|John S. Moore (73)
      346 Bayside Road
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Independent Trustee
        since 1993                             | Professor (now retired), College of Business and
Economics, Western Washington University                            
|INTERESTED TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Nicholas F. Kaiser, CFA (58)
      1300 N. State Street
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | President;
        Trustee*
        since 1989                     | President, Saturna Capital
Corporation
        President, Saturna Brokerage Services                                 
|OFFICERS WHO ARE NOT TRUSTEES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Phelps S. McIlvaine (51)
      1300 N. State Streeet
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Vice President
        since 1994                                  | Vice President, Saturna Capital
Corporation
        Treasurer, Saturna Brokerage Services                            
|Chrisopher R. Fankhauser (32)
      1300 N. State Street
      Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Treasurer*
        since 2002                                      | Manager of Operations, Saturna Capital Corporation                                                                   
|Ethel B. Bartolome (32)
    1300 N. State Street
    Bellingham, WA 98225                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Secretary*
      since 2001                                        | Corporate Administrator, Saturna Capital Corporation [since 2000] 
    Administrator, Cytel Corporation [1994-1999]  
|James D. Winship (56)
      5406 Diamond Place NE
      Bainbridge Island, WA 98110                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Chief Compliance Officer*
        since 2004                       | Corporate Administrator, Saturna Capital Corporation
[since 2000] 
      Administrator, Cytel Corporation [1994-1999]
|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 by calling Saturna Capital at 800-SATURNA, includes additional
        information about the Trustees.
        On November 30, 2004, the trustees, officers and their immediate
families
        as a group owned 18%, 26.7%, 15.2% and 29% of the outstanding shares
        of Bond Income, Short-Term Bond, Growth and International Funds,
respectively.
        Saturna Capital Corporation is the Trust’s adviser and Saturna
        Brokerage Services, Inc. is the Trust’s distributor. 
        Mr. Kaiser is an interested person of the Trust by reason of his
positions
        with the Trust’s adviser and distributor, and the primary manager
        of the Sextant Growth Fund and Sextant International Fund. 
        Mr. McIlvaine is the primary manager of the Sextant Bond Income Fund
        and Sextant Short-term Bond Fund. 
        †
        Holds same position with Amana Mutual Funds Trust.

|November 30, 2004
Annual
      Report |  | 33
|------------------------------------- |  | --

---

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

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

(1) A description of the policies and procedures that the
Funds
    use to determine how to vote proxies relating to portfolio securities is
    available (a) without charge, upon request, by calling Saturna Capital at
    1-800 728-8762 (b) on the Funds’ website at http://www.saturna.com;
    and (c) on the SEC’s website at http://www.sec.gov.
    (2) Information regarding how each Fund voted proxies relating to portfolio
    securities during the most recent 12-month period ended June 30 is available
    (a) without charge, upon request, by calling Saturna Capital at 1-800
728-8752;
    (b) on the Funds’ website at http://www.saturna.com; and (c) on the
    SEC’s website at http://www.sec.gov.

**Privacy Statement (unaudited)**
    At Saturna Capital, we understand the importance to you in maintaining  the
    privacy of your financial information. To that end, we want to assure you
    that we protect the confidentiality of any personal information you share
    with us.
    We collect personal information about you from information we receive from
    you on applications and other forms and from transactions or trades placed
    with us. Please be assured that except to administer a transaction with an
    affiliated third party upon your request, we do not disclose any personal
    information about our customers, or our former customers, to anyone, except
    as may be required by law. We maintain our own technology resources to
minimize
    the use of outside service providers.
    Additionally, Saturna Capital restricts access to personal information about
    you to those employees who need to know that information to provide products
    or services to you. We maintain physical, electronic, and procedural
safeguards
    that comply with regulations to guard your personal information. If you have
    further questions or concerns about the security or privacy of the
information
    we receive from you, please call us at 800 / SATURNA.

|34 |  | November
              30, 2004 Annual Report
|-- |  | ---------------------------------------------

---

MORNINGSTAR

***Source: Morningstar 11/30/04.** Past
performance does not guarantee future results. For each fund with at least a
three-year history, Morningstar calculates a Morningstar RatingTM based on
a Morningstar Risk-Adjusted Return measure that accounts for variation in a
fund’s monthly performance (including the effects of sales charges, loads,
and redemption fees), placing more emphasis on downward variations and rewarding
consistent performance. The top 10% in each category receive 5 stars, the next
22.5% 4 stars, the next 35% 3 stars, the next 22.5% 2 stars and the bottom 10%
receive 1 star. The Overall Morningstar Rating for a fund is derived from a
weighted average of performance figures associated with its 3-, 5- and 10-year
(if applicable) Morningstar Rating metrics. 
    Sextant International was 116th of 391 Foreign Large Blend funds in the last
3 years and 11th of 284 funds in the last 5 years. With respect to these Foreign
Large Blend funds, Sextant International received a Morningstar Rating of 3 and
4 stars for the 3- and 5- year periods, ended 11/30/04 respectively. 
    Sextant Growth was 137th of 637 Mid-Cap Growth funds in the last 3 years,
99th of 424 funds in the last 5 years, and 44th of 159 funds in the last 10
years. With respect to these Mid-Cap Growth funds, Sextant Growth received a
Morningstar Rating of 4, 4, and 4 stars for the 3-,5-, and 10- year periods,
ended 11/30/04 respectively. 
    Sextant Short-Term Bond was 43rd of 217 Short-Term Bond funds over the last
3 years and 52nd of 174 funds in the last 5 years. With respect to these
Short-Term Bond funds, Sextant Short-Term received a Morningstar Rating of 4 and
4 stars for the 3- and 5- year periods, ended 11/30/04 respectively.
    Sextant Bond Income was 26th of 55 Long-Term Bond funds in the last 3 years,
23rd of 39 funds in the last 5 years, and 12th of 18 funds in the last 10 years.
With respect to these Long-Term Bond funds, Sextant Bond Income received a
Morningstar Rating of 3, 2 and 2 stars for the 3, 5 and 10 year periods, ended
11/30/04 respectively.

|November 30, 2004
Annual Report |  | 35
|------------------------------- |  | --

---



Web:
http://www.saturna.com
                      E-mail: sextant@saturna.com
                    
                    
                    (logo)
                    SATURNA
                        CAPITAL*Mutual Funds*
                      1300 N. State Street
                    Bellingham WA 98225-4370
                    800/SATURNA(800/728-8762)888/732-6262 for automated assistance,
                      including fund prices
                    
                    This
                      report is issued for the information of the shareoweners
                      of the Fund. It is not authorized for distribution to
prospective
                      investors unless it is accompanied or preceded by an
effective
                      prospectus relating to the securities of the Fund. Idaho
                      Tax-Exempt Fund is a series of Saturna Investment
Trust.
                  (graphic omitted)
                            
                            
                            SEXTANTMutual Funds
                            
                            
                            
                            SHORT-TERM
                              BOND
                            BOND
INCOME
                            GROWTH
                            INTERNATIONAL
                            
                            
                            ANNUAL
                              REPORTNovember 30, 2004
                            Saturna
Brokerage
                            Services,Distributor.
          
          36
                  
                  November
                          30, 2004 Annual Report


Idaho Tax-Exempt
FundNovember 30, 2004
ReportFellow Shareowners:For the fiscal year ending November 30, 2004, Idaho
Tax-Exempt Fund provided a total return of +2.29%. The net asset value was $5.39
per share compared to $5.46 one year ago and $5.29 in our May semi-annual
report. Total Fund assets grew 10%, to a record $8.47 million.In 2004, two major forces clashed in the bond market.
            At the short end, the Federal Reserve decided to
“"normalize"
            short-term rates and pushed up the Fed Funds rate from 1.00% to
2.25%.
            This
            reduces a financial stimulus no longer needed by an increasingly
            healthy economy. At the long end, domestic productivity gains and
            globalization overwhelmed the impact of the weak US dollar and
rising
            prices for commodities and energy. US inflation remains so well
contained
            that long-term tax-exempt bond rates actually fell slightly for the
            year. The yield curve flattened and long maturities outperformed
            shorter maturities.
          One year ago, we correctly forecast rising short-term
interest rates. But we underestimated the deflationary pressures from increased
trade between China, Japan and the US. While inflation has increased recently,
it remains well-contained. The remarkable stability of long-term rates in the
face of such a weak US currency and strong energy prices is unusual.
          Looking ahead, we remain concerned about the prospects
for higher inflation. Management intends to limit the weighted average maturity
of the Fund to reduce downside price risk. Conservative investors choose the
Idaho Tax-Exempt Fund for high-quality tax-free municipal bonds and low price
volatility. For 2005, capital preservation will continue as a major Fund
objective, and investors may wish to reallocate assets from riskier sectors such
as common stocks. We do expect another year of positive real returns in
2005.
          The State of Idaho continues to do well financially.
            Adjusted for inflation, Idaho's gross state product 5.8% annual
growth
            rate between 1998 and 2002 (the latest year for which
inflation-adjusted
          data are available) ranked it **Number 1** (more than
          twice the 2.7% U.S. average). Firms in the important electronics,
agriculture
          and construction industries are prosperous. According to Moody's
          Investors Service, which just upgraded its credit, “Idaho
increased
          its tax supported debt per capita to $115 in 2003 from $83 in 2002,
          yet still ranks 49th (out of 50 states).” The State budget
remains
          in balance, and fiscal discipline and pro-business policies give the
          State a sharp competitive edge.
          We invite you to review the advantages of the Idaho
            Tax-Exempt Fund, including low expenses, income free from Idaho and
            federal income taxes, a high-quality diversified bond portfolio and
            daily supervision by professional managers. We welcome your
suggestions.
            Only with your help can we be certain that we are meeting your
investment
            needs —- our primary objective.
          Nicholas
Kaiser,
              Phelps
                  McIlvaine,President
              Vice President, Portfolio
ManagerJanuary 4, 2005November 30,
                2004 Annual Report
              
              29INVESTMENTSRating*
              Issuer
              Coupon/Maturity
              Face
Amount
              Market
Value
              PercentageAs of November 30,
2004Electric PowerAAA
              Idaho Falls Electric Revenue
              6.75% due 4/1/2019
              $155,000
              $159,548
              1.9%Financial ServicesAAA
              Boise City General Fund Revenue
              5.20% due 12/1/2017
              160,000
              174,882
              2.1%AAA
              "
              5.25% due 12/1/2018
              100,000
              109,035
              1.3%SUB-TOTAL
              
              260,000
              283,917
              3.4%General ObligationsAA-
              Ada & Canyon Counties JSD #2
              5.50% due 7/30/2011
              175,000
              198,218
              2.3%AA-
              "
              5.50% due 7/30/2015
              100,000
              114,347
              1.3%AAA
              Adams County
              5.00% due 8/1/2014
              110,000
              113,996
              1.3%A+
              Bannock County Jail
              5.05% due 9/1/2012
              95,000
              99,469
              1.2%AAA
              Bannock County SD #25 Pocatello
              5.20% due 8/1/2014
              100,000
              106,874
              1.3%A
              "
              5.25% due 8/1/2016
              110,000
              117,483
              1.4%A
              "
              4.90% due 8/1/2009
              90,000
              95,465
              1.1%AAA
              Bingham County SCD #55 Blackfoot
              4.65% due 8/1/2017
              285,000
              300,565
              3.5%AA-
              Boise City ISD UTGO 1996
              5.50% due 7/30/2016
              150,000
              155,994
              1.8%AA
              Boise City ISD Rev. Ada & Boise
              5.00 due 8/15/2014
              100,000
              110,469
              1.3%A
              Boise County SD #73 Horshoe Bend
              5.15% due 7/31/2010
              125,000
              131,620
              1.6%AAA
              Boundary County SCD #101
              4.05% due 8/1/2015
              200,000
              204,586
              2.4%AAA
              "
              5.10% due 8/1/2022
              130,000
              139,491
              1.6%AAA
              Caldwell
              5.30% due 5/15/2014
              150,000
              166,047
              2.0%AAA
              Canyon County SCD #139 Valley View
              4.05% due 8/15/2016
              80,000
              80,040
              0.9%AAA
              Canyon County SD #131 Nampa
              4.75% due 8/15/2019
              325,000
              339,479
              4.0%AAA
              Canyon County SD #134 Middleton
              4.65% due 7/31/2016
              170,000
              180,806
              2.1%A
              Canyon County SD #135
              6.00% due 8/1/2007
              50,000
              49,821
              0.6%AAA
              Cassia & Twin Falls JSD #151
              5.375% due 8/1/2013
              85,000
              89,063
              1.1%AAA
              "
              5.375% due 8/1/2015
              75,000
              78,585
              0.9%AAA
              Clark County SD #161 Dubois
              5.00 % due 8/1/2015
              270,000
              291,701
              3.4%AA
              Idaho Housing and Finance Association
              4.80% due 6/1/2017
              100,000
              106,286
              1.3%AAA
              Kootenai County SD #273
              5.00% due 7/30/2016
              70,000
              73,177
              0.9%AAA
              Kuna Sch/Comm Library District
              4.90% due 8/1/2013
              75,000
              80,448
              0.9%AAA
              Lemhi County
              4.20% due 8/1/2015
              100,000
              102,907
              1.2%AAA
              Meridian Free Library District
              5.00% due 8/1/2015
              200,000
              208,346
              2.5%AAA
              Oneida County SCD #351 Malad City
              4.00% due 8/15/2015
              150,000
              151,812
              1.8%AAA
              Owyhee & Canyon Cos. JSD #370
              4.55% due 8/15/2016
              160,000
              169,263
              2.0%AAA
              Power & Cassia Cos. JSD #381
              5.25% due 8/1/2012
              60,000
              65,644
              0.8%AAA
              Teton County SD #401
              5.50% due 8/1/2012
              75,000
              78,737
              0.9%SUB-TOTAL
              
              3,965,000
              4,200,739
              49.4%HousingAA
              Idaho Housing Agency
              6.85% due 7/1/2012
              20,000
              20,029
              0.2%AA
              "
              6.15% due 7/1/2024
              55,000
              55,060
              0.6%AA+
              "
              6.60% due 7/1/2011
              15,000
              14,993
              0.2%AAA
              Valley County Jail Project Ref.
              4.70% due 8/1/2014
              125,000
              129,791
              1.5%SUB-TOTAL
              
              215,000
              219,873
              2.5%30
              
              November
                  30, 2004 Annual ReportRating*
              Issuer
              Coupon/Maturity
              Face
Amount
              Market
Value
              PercentageMedical/HospitalsAAA
              Idaho Health Facility Holy Cross Rev Ref
              5.25% due 12/1/2011
              $65,000
              $69,783
              0.8%AAA
              Idaho Health Facility Auth Rev Ref
              5.25% due 12/1/2014
              110,000
              118,020
              1.4%AAA
              Idaho Health Facility Auth. Corp
              5.00% due 12/1/2022
              115,000
              118,559
              1.4%AAA
              Madison Hospital COP
              5.00% due 12/1/2018
              105,000
              112,418
              1.3%SUB-TOTAL
              
              395,000
              418,780
              4.9%Pollution ControlAAA
              Idaho Bond Bank Authority Rev
              4.30% due 9/1/2022
              135,000
              132,200
              1.6%Real EstateAAA
              Boise City Urban Renewal Agency Pk Rev &
RA
              5.00% due 9/1/2012
              65,000
              70,392
              0.8%AAA
              Idaho State Building Association
              5.05% due 9/1/2018
              95,000
              101,256
              1.2%AAA
              Idaho State Building Authority
              5.00% due 9/1/2021
              100,000
              105,143
              1.2%A
              Jerome Urban Renewal District
              5.40% due 9/1/2013
              200,000
              206,882
              2.5%SUB-TOTAL
              
              460,000
              483,673
              5.7%RoadsA
              Payette L.I.D. #89-1
              7.60% due 5/1/2005
              30,000
              29,851
              0.4%A
              Post FallsL.I.D. #91-4
              7.95% due 4/15/2005
              20,000
              19,898
              0.3%A
              "
              7.95% due 4/15/2006
              20,000
              19,891
              0.3%A
              "
              7.95% due 4/15/2007
              20,000
              19,891
              0.3%SUB-TOTAL
              
              90,000
              89,531
              1.3%State EducationAAA
              Boise State University Revs-Ref.
              5.10% due 4/1/2014
              300,000
              324,273
              3.8%AAA
              Idaho State University Building Authority
              4.00% due 9/1/2016
              105,000
              104,757
              1.2%AAA
              Idaho State University Ref & I mpt
              4.90% due 4/1/2017
              150,000
              159,726
              1.9%AAA
              Idaho State University Rev
              4.625% due 4/1/2024
              220,000
              223,819
              2.6%AAA
              University of Idaho
              5.60% due 4/1/2015
              185,000
              198,295
              2.3%AAA
              University of Idaho Student Fee Rev
              5.25% due 4/1/2014
              120,000
              131,054
              1.6%SUB-TOTAL
              
              1,080,000
              1,141,924
              13.4%SewerA
              Troy Sewer Revenue
              7.70% due 2/1/2005
              15,000
              14,918
              0.2%A
              "
              7.80% due 2/1/2006
              15,000
              14,926
              0.2%A
              "
              7.90% due 2/1/2007
              15,000
              14,934
              0.2%A
              "
              8.00% due 2/1/2008
              15,000
              14,938
              0.2%A
              "
              8.00% due 2/1/2009
              20,000
              19,919
              0.2%A
              "
              8.00% due 2/1/2010
              20,000
              19,926
              0.2%SUB-TOTAL
              
              100,000
              99,561
              1.2%Urban RenewalAAA
              Boise City Urban Ren Agcy Lease Rev
              5.875% due 8/15/2025
              190,000
              210,531
              2.5%AA
              Pocatello Dev Auth Rev Al Tax Inc
              5.15% due 3/1/2011
              150,000
              159,222
              1.8%SUB-TOTAL
              
              340,000
              362,753
              4.3%November
                  30, 2004 Annual Report
                
                31Rating*
                Issuer
                Coupon/Maturity
                Face
Amount
                Market
Value
                Percentage
          Water SupplyAAA
              Blackfoot COP Series 2000
              5.80% due 9/1/2018
              $135,000
              $153,979
              1.8%AAA
              Ketchum Water Revenue
              4.75% due 9/1/2013
              60,000
              63,416
              0.8%AAA
              McCall Water System
              6.25% due 9/1/2008
              200,000
              212,606
              2.5%AAA
              McCall Water System
              6.375% due 9/1/2014
              70,000
              73,590
              0.9%AAA
              Moscow Sewer Revenue
              4.125% due 11/1/2008
              165,000
              172,662
              2.0%SUB-TOTAL
              
              630,000
              676,253
              8.0%Total Investments
              **(Cost = $7,975,044)**
              **$7,825,000**
              **$8,268,752**
              **97.6%****Other Assets (net of liabilities)**
              
              
              **203,672**
              **2.4%**Total Net Assets
              
              
              **$8,472,424**
              **100.0%*** These unaudited bond ratings reflect the
adviser's
                current rating of each bond, as determined using Standard &
Poor's
                and Moody's ratings.
          
          FINANCIAL
                  HIGHLIGHTSSelected data per share of capital stock
outstanding
                throughout the year:
              
              For Year Ended November
                  30,2004
              2003
              2002
              2001
              2000Net asset value at beginning of year
              
              $5.46
              $5.37
              $5.28
              $5.13
              $5.01Income from investment operationsNet investment income
              
              0.19
              0.21
              0.22
              0.22
              0.23Net gains or losses on securities (both realized
                and unrealized)
              
              (0.07)
              0.09
              0.09
              0.15
              0.12Total from investment operations
              
              0.12
              0.30
              0.31
              0.37
              0.35Less distributionsDividends (from net investment income)
              
              (0.19)
              (0.21)
              (0.22)
              (0.22)
              (0.23)Total distributions
              
              (0.19)
              (0.21)
              (0.22)
              (0.22)
              (0.23)Net asset value at end of year
              
              $5.39
              $5.46
              $5.37
              $5.28
              $5.13Total Return
              
              2.29%
              5.40%
              5.98%
              7.40%
              7.28%Ratios / Supplemental DataNet assets ($000), end of year
              
              $8,472
              $7,692
              $6,943
              $6,650
              $5,628**Ratio of gross expenses to average net
assets**Before custodian fee waiver
              
              0.95%
              0.88%
              0.88%
              0.90%
              0.94%After custodian fee waiver
              
              0.93%
              0.85%
              0.80%
              0.79%
              0.80%Ratio of net investment income to average net
assets
              
              3.56%
              3.78%
              4.14%
              4.21%
              4.69%Portfolio turnover rate
              
              15%
              6%
              11%
              13%
              14%(The accompanying notes are an
integral part of these financial statements)
          32
              
              November 30, 2004 Annual ReportSTATEMENT
                    OF ASSETS AND LIABILITIES
          As of November 30, 2004AssetsBond investments (cost $7,975,044)
              $8,268,752Cash
              388,588Interest receivable
              114,620Insurance Reserve Premium
              800Total Assets
              
              $8,772,760LiabilitiesPayable for securities purchased
              287,326Other Liabilities
              11,853Due to affiliates
              1,157Total Liabilities
              
              300,336Net Assets
              
              $8,472,424Fund Shares Outstanding
              
              1,571,241Analysis of Net AssetsPaid in Capital (unlimited shares authorized,
without
                par value)
              8,213,185Accumulated net realized loss
              (34,469)Unrealized net appreciation to on investments
              293,708Net Assets applicable to Fund shares
outstanding
              
              $8,472,424Net Asset Value, Offering and Redemption price
                per share
              
              **$5.39**
          (The accompanying notes are an integral part of
            these financial statements)
          November
                30, 2004 Annual Report
              
              33STATEMENT
                  OF OPERATIONSFor the year ended November

                  30, 2004Investment incomeInterest income
              
              $373,295Amortization of bond premium
              
              (20,303)Accretion
              
              1,277Gross investment income
              
              $354,269ExpensesInvestment adviser and administration fees
              
              39,632Audit fees
              
              9,446Legal fees
              
              6,285Insurance
              
              5,732Shareholder service fee
              
              4,141Custodian fees
              
              4,134Printing and postage
              
              2,158Trustees fees
              
              1,784Filing and registration fees
              
              1,021Other expenses
              
              554Total gross expenses
              
              74,887Less custodian fees waived
              
              (1,647)Net expenses
              
              
              73,240Net investment income
              
              281,029Net realized loss on investmentsProceeds from sales
              
              1,106,449Less: cost of securities sold (based on identified

                cost)
              
              1,119,919Realized net loss
              
              (13,470)Unrealized gain on investmentsEnd of year
              
              293,708Beginning of year
              
              370,360Decrease in unrealized gain for the year
              
              
              (76,652)Net realized and unrealized loss
              
              (90,122)Net increase in net assets resulting from
operations
              
              
              **$190,907**(The accompanying notes are an
            integral part of these financial statements)
          34
              
              November
                  30, 2004 Annual ReportSTATEMENT
                  OF CHANGES IN NET ASSETSYear ended
              Year endedNov. 30, 2004
              Nov. 30, 2003INCREASE IN NET ASSETSFrom OperationsNet investment income
              $281,029
              $276,090Net realized gain (loss) on investments
              (13,470)
              10,663Net increase (decrease) in unrealized appreciation
              (76,652)
              94,455Net increase in net assets
              190,907
              381,208Dividends to shareowners fromNet investment income
              (281,029)
              (276,090)From fund share transactionsProceeds from sales of shares
              1,610,976
              1,140,412Value of shares issued in reinvestment of dividends
              223,255
              216,5741,834,115
              1,356,986Cost of shares redeemed
              (963,286)
              (713,555)Net increase in net assets
              870,945
              643,431Total increase in net assets
              $780,707
              $748,549NET ASSETSBeginning of year
              7,691,717
              6,943,168End of year
              $8,472,424
              $7,691,717Shares of the fund sold and redeemedNumber of shares sold
              298,944
              209,181Number of shares issued in reinvestment of dividends
              41,311
              39,726340,255
              248,907Number of shares redeemed
              (178,689)
              (131,040)Net increase in number of shares outstanding
              161,566
              117,867(The accompanying notes are an
integral part of these financial statements)
          
          
          November
                  30, 2004 Annual Report
                
                35
          Discussion of Fund

            Performance(unaudited)
          FISCAL YEAR
2004
                  For the year ending November 30, 2004, Idaho Tax Exempt Fund
                    returned 2.29%. At November 30, 2004, the Fund held
Morningstar's† overall “4-star” rating
                    (judged against 227 funds in the Muni Single State
Intermediate-term
                    category, overall). At fiscal year end, the thirty-day SEC
                    current yield was 2.93%, down from 3.20% one year ago. The
                    Fund's net assets grew 10% during the year, as they
                    also did the year before. Consistent with the Fund's
                    conservative investment philosophy, the Fund's price
                    ranged between $5.25 and $5.46 per share (a 4.0% variation
                    from low to high). 
                  .
                Average Annual Total
                    Returns1 year
                5 years
                10 years2.44%
                5.89%
                5.81%Performance data for
calendar
                      years ended 12/31/2004. Performance data quoted represents
                      past performance
                      and investment return and principal value of investment
                      will fluctuate so that an investors shares, when
                      redeemed maybe worth more or less than their original
cost.FACTORS AFFECTING PAST
PERFORMANCE
                
              In 2004, rising prices of commodities and energy, the record trade
              and budget deficits and a weak US dollar all predicted a
significant
              rise in US inflation. Typically domestic bond investors respond
              to such forces by demanding higher interest rates to compensate
              for the loss of purchasing power.
              Ratings 
        established
                  By 
        Advisor
                  By Standard &
Poor's
                  By Moody's 
        Investor ServicesAAA
                  71.8%
                  38.4%
                  60.9%AA
                  9.5%
                  8.9%
                  4.6%A
                  16.4%
                  4.0%
                  3.7%unrated
                  --
                  46.5%
                  28.6%cash
                  2.2%
                  2.2%
                  2.2%For the year, short–term AAA general obligation yields
                did rise 0.50% to 0.90%, but ten-year AAA general obligation
                yields were unchanged. This means short-term securities
underperformed
                long-term securities and the Fund’s conservative short
                average maturity hindered its total return. The average maturity
                of the Fund is the most important factor affecting principal
                values in the portfolio. The Fund average maturity is now 5.59
                years, up from 5.33 years last November. Under normal
conditions,
                the Fund’s average maturity is in the six to fifteen year
                range. The shorter maturity results from management’s
cautious
                outlook. 
                Idaho’s high state income taxes create a substantial
appetite
                among residents for tax-exempt bonds. The imbalance between the
                demand for and the supply of issues is an important element in
                the performance of Idaho paper in both bull and bear markets.
                High-grade municipal bonds generally outperform US Treasurys
                in periods of rising rates and underperform in periods of
falling
                rates. We expect this low relative volatility to continue.
          *Source: Morningstar 11/30/04.
          *Past
                performance does not guarantee future results. For each fund
                with at least a three-year history, Morningstar calculates a
                Morningstar RatingTM based on a Morningstar Risk-Adjusted
                Return measure that accounts for variation in a fund’s
                monthly performance (including the effects of sales charges,
                loads, and redemption fees), placing more emphasis on downward
                variations and rewarding consistent performance. The top 10%
                in each category receive 5 stars, the next 22.5% 4 stars, the
                next 35% 3 stars, the next 22.5% 2 stars and the bottom 10%
receive
                1 star. The Overall Morningstar Rating for a fund is derived
                from a weighted average of performance figures associated with
                its 3-, 5- and 10-year (if applicable) Morningstar Rating
metrics.
                The following are percentile rankings where 1 is best and 100
                is worst. Idaho Tax-Exempt ranked 48 of 227 Muni Single State
                Intermediate-term funds over the last 3 years, 44 against 201
                funds over the last 5 years, and 60 against 122 funds in the
                last 10 years. With respect to these numbers of Muni
Single-State
                Intermediate-term funds, Idaho Tax-Exempt received a Morningstar
                rating of 4, 4, and 3 stars for the 3-, 5-, and 10- year
periods,
                ended 11/30/04 respectively.*(The accompanying notes are an
integral part of these financial statements)36
              
              November
                  30, 2004 Annual ReportDiscussion of Fund
Performance
                (continued) [unaudited]
          LOOKING
FORWARD
            In 2004, we expect the US economy to grow 2%-4% and corporate
profits to increase 7%-14%. The Federal Reserve Bank will push short-term rates
up toward 3.5%. We expect ten-year AAA Idaho municipal yields to rise from 3.6%
% to 4.5%. But if the US looses debt funding from abroad, rates in the US could
rise sharply. The Fund could have an opportunity to buy higher yielding bonds
and extend its maturity.
          Strong competition between municipal bond insurers and
the Idaho School Bond Guarantee Program will reduce availability of new issue
non-rated paper. The yield advantage of quality uninsured paper can be
attractive, but the supply has dwindled to a trickle. 6.9% of the portfolio
remains invested in non-rated paper, down from 7.9%, the result of several
issuers maturing. Credit quality of other non-rated issuers owned by the Fund
remains secure.
          COMPARISON TO
INDEX
            The graph below compares the  Fund's performance to the performance
              of the Lehman Brothers Composite Municipal Bond Index, a
broad-based
              municipal bond market index. Though the Fund does not try to
“"beat"” any
              index, the Fund's returns, considering the lower price
fluctuation,
              compare well to that of the Lehman Index for the fiscal year. Note
              that this graph compares an unmanaged, expense free index to an
              actively managed fund that has transaction and other operational
              costs. The Fund also stands ready to buy and sell its own
securities
              to shareowners on a daily basis, as well as providing a wide range
              of services to them.The graph shows that $10,000 invested in the Idaho Tax
Exempt Fund on 11/30/94 would have grown to $17,785 at the end of November 2004.
If $10,000 could have been invested in the Lehman Brothers Composite Municipal
Bond Index on 11/30/94, it would have grown to $19,969.
          Idaho Tax Exempt Bond Fund vs. Lehman Composite
              
            Municipal Bond Index (unaudited)Fund Average Annual Returns
            One Year 2.29%
            Five Year 5.70%Ten Year 5.79%(graphic omitted)November
                  30, 2004 Annual Report
                
                37
          NOTES TO FINANCIAL
STATEMENTS
            Note 1 -
OrganizationSaturna Investment Trust, (the “Trust”)
                  was established under Washington State Law as a Business Trust
                  on February 20, 1987. The Trust is registered as a no-load,
                  open-end series investment company under the Investment
Company
                  Act of 1940, as amended. Four portfolios have been created
                  to date in addition to Idaho Tax-Exempt Fund (the
“Fund”).
                  The other four portfolios distribute through a separate
prospectus
                  and the results of those funds are contained in a separate
                  report.
                  The investment objective of the Fund is to provide income free
                  from federal income, federal alternative minimum and Idaho
                  state income taxes, with a secondary objective of capital
preservation.Note 2 - Significant Accounting
PoliciesThe following is a summary of the significant
accounting policies followed by the Fund.***Security valuation:***
                    Fixed-income securities for which there are no publicly
available
                      market quotations are valued using matrices based on
maturity,
                      quality, yield, call features and similar factors, which
                      are compared periodically to multiple dealer bids and
adjusted
                      by the adviser under fair value policies established by
                      the Trustees. The ability of issuers of debt securities
                      held by the Fund to meet their obligations may be affected
                      by economic and political developments in the State of
                  Idaho.***Income taxes:***
                    The Fund’s policy is to continue to comply with the
                    requirements of the Internal Revenue Code that are
applicable
                    to regulated investment companies and to distribute all its
                    taxable income to its shareowners. Therefore, no provision
                    for Federal income taxes is required. Further, the Fund
intends
                    to meet requirements for tax-free income dividends, and
requirements
                    of the Idaho Department of Revenue for income dividends free
                    of Idaho state income tax.***Dividends and distributions to
shareowners:***
                    Dividends and distributions to shareowners, which are
determined
                    in accordance with income tax regulations, are recorded on
                    the ex-dividend date. Dividends are paid daily and
distributed
                    on the last business day of each month. Shareowners electing
                    to reinvest dividends and 
  Interest income is increased by accretion only for bonds underwritten as
original issue discounts. Discounts and premiums on securities purchased are
amortized, over the lives of the respective securities.
  Expenses incurred by the Trust on behalf of the Fund (e.g., professional fees)
are allocated to the Fund and the other Funds of the Trust on the basis of
relative daily average net assets. The Adviser has agreed to certain limits on
expenses, as described below.
                distributions purchase additional shares at
                    the net asset value on the payable date.***Use of Estimates:***
                  The preparation of financial statements in conformity with
                  accounting principles generally accepted in the United States
                  of America requires management to make estimates and
assumptions
                  that affect the reported amounts of assets and liabilities
                  and disclosure of contingent assets and liabilities at the
                  date of the financial statements and the reported amounts of
                  increases and decreases in net assets from operations during
                  the reporting period. Actual results could differ from those
                  estimates. ***Other:***
                  The cost of securities is the same for accounting and Federal
                  income tax purposes. Securities transactions are recorded on
                  trade date.
                  Interest income is recognized on an accrual basis. Discounts
                  and premiums on securities purchased are amortized, over the
                  lives of the respective securities. 
                  Expenses incurred by the Trust on behalf of the Fund (e.g.,
                  professional fees) are allocated to the Fund and the other
                  Funds of the Trust on the basis of relative daily average net
                  assets.Note 3 - Transactions with
Affiliated PersonsUnder a contract approved by shareowners on October
                    12, 1990, Saturna Capital Corporation provides investment
                    advisory services and certain other administrative and
distribution
                    services to conduct the Fund’s business. For such
services,
                    the Fund pays an annual fee equal to .50% of average daily
                    net assets. For the year ended November 30, 2004, the Fund
                    incurred advisory fee expenses of $39,632. 
                    In accordance with the Fund’s agreement with its
custodian,
                    National City Bank of Indiana, for the year ended November
                    30, 2004, custodian fees incurred by the Fund amounted to
                    $4,134. The custodian waived $1,647 of its fees for earnings
                    credits.
                    Saturna Brokerage Services, Inc. (a subsidiary of Saturna
                    Capital Corporation) is a broker-dealer and acts as
distributor
                    without compensation. Saturna Capital Corporation acts as
                    shareowner servicing agent for the Fund, for a monthly fee
                    plus certain expenses. For the year ended November 30, 2004,
                  the Fund paid shareholder servicing
            38
                
                November 30, 2004 Annual Reportfees of $4,141.
                  One trustee, who also serves as the president of the Trust,
                      is a director and president of the Adviser. On November
                      30, 2004, the trustees, officers and their immediate
families
                      as a group owned 0.05% of the outstanding shares of the
                      Fund.
                  The four unaffiliated trustees receive $200 per Board or
committee
                  meeting attended, plus travel expenses, allocated pro-rata
                  to the five Funds of Saturna Investment Trust. The Trust paid
                  the Independent Trustees $2,400 to attend meetings during the
                  fiscal year. New regulations in 2004 required the Trust to
                  designate a Chief Compliance Officer; Mr. Winship was retained
                  by the Trust and paid $6,250 during the fiscal year. The other
                  officers are paid by Saturna Capital, and not the Trust.Note 4 - Federal Income
TaxesAt November 30, 2004, Idaho Tax-Exempt had capital
                    loss carryforwards of $34,469 of which $20,999 expire in
                    2008 and $13,470 expire in 2012, subject to regulation.
Prior
                    to their expiration, such loss carryforwards may be used
                    to offset future net capital gains realized for federal
income
                  tax purposes.
                Note 5 -
InvestmentsDuring the year ended November 30, 2004, the Fund
purchased
                  $2,018,602 of securities and sold/matured $1,106,449 of
securities.***Distributions to
shareowners:***
  The tax character of distributions paid during the years ended November 30,
  2004 and 2003 were as follows:2004Tax-Exempt Income:  $280,630 Taxable Income: $3992003
                    Tax-Exempt Income: $276,090
                  Taxable Income: -As of November 30, 2004 the components of capital on a tax
                    basis were as follows:
  Cost of investments(a): $7,975,044
  Gross unrealized appreciation: 314,233
  Gross unrealized depreciation: (20,525)
  Net unrealized appreciation: $293,708Undistributed ordinary income: -
  Capital
  loss carryforward: (34,469)Total distributable earnings: $(34,469)Total accumlated earnings/losses: $259,239(a) At November 30, 2004, the basis of
investments for federal
                    income tax purposes does not differ from the cost of
financial
                  reporting purposes.Privacy
                          Statement (unaudited)
                    At Saturna Capital, we understand the importance to
                        you in maintaining the privacy of your financial
information.
                        To that end, we want to assure you that we protect the
                        confidentiality of any personal information you share
                        with us.
        We collect personal information about you from information we receive
        from you on applications and other forms and from transactions or trades
        placed with us. Please be assured that except to administer a
transaction
        with an affiliated third party upon your request, we do not disclose
        any personal information about our customers, or our former customers,
        to anyone, except as may be required by law. We maintain our own
technology
        resources to minimize the use of outside service providers.
        Additionally, Saturna Capital restricts access to personal information
        about you to those employees who need to know that information to
provide
        products or services to you. We maintain physical, electronic, and
procedural
        safeguards that comply with regulations to guard your personal
information.
        If you have further questions or concerns about the security or privacy
        of the information we receive from you, please call us at 800 /
SATURNA.
            November 30, 2004 Annual Report
                
                39EXPENSES
                        (unaudited)As an Idaho Tax-Exempt mutual fund shareowner, you
incur ongoing costs, including management fees and other fund expenses. Unlike
many mutual funds, you do not incur sales charges (loads) on purchase payments,
reinvested dividends, or other distributions. Nor do you incur redemption fees,
exchange fees, or fees related to Individual Retirement Accounts. You may incur
fees related to extra services requested by you for your account, such as a
checkbook to use for redemptions or bank wires.**EXAMPLE**
  The exampleis based on an investment of $1,000 invested at the beginning of
the fiscal year and held for the entire year [Friday, November 28, 2003 to
Tuesday, November 30, 2004].**ACTUAL EXPENSES**
  The first line provides information about actual account values and actual
expenses. You may use the information in this line, together with the amount you
have invested, to estimate the expenses that you paid over the period. Simply
divide your account value by $1,000 (for example, a $9,400 account value divided
by $1,000 = 9.4), then multiply the result by the number in the first line under
heading entitled “Expenses Paid During Year” to estimate the
expenses you paid on your account during this fiscal year. The Fund also charges
the following fees for extra services rendered on request, which you may need to
add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15
per overnight courier delivery.**HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES**
  The second line provides information about hypothetical account values and
hypothetical expenses based on the Fund’s actual expense ratio (based on
the last six months) and an assumed rate of return of 5% per year before
expenses, which is not the Fund’s actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the year. You may use this information to
compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareowner reports of the other funds. You may wish to add other
fees that are not included in the expenses shown in the table, such as IRA fees
(there are no IRA fees with the Idaho Tax-Exempt Fund), and charges for extra
services such as check writing and bank wires.
  Please note that the expenses shown are meant to highlight your ongoing costs
only and do not reflect any transactional costs, such as sales charges (loads),
redemption fees, or exchange fees (note that the Idaho Tax-Exempt Fund do not
have any such transactional costs). Therefore, the second line is useful in
comparing ongoing costs only, and may not help you determine the relative total
costs of owning different funds.**IDAHO TAX-EXEMPT FUND**Beginning Account Value
[Friday, November 28, 2003]
                  Ending Account Value
[Tuesday, November 30, 2004]
                  Expenses Paid During
Period*Actual
          (2.29% return 
          after expenses)
                  $1,000
                  $1,022.90
                  $9.31Hypothetical
          (5% return 
          before expenses)
                  $1,000
                  $1,040.80
                  $9.39
            * Expenses are equal to Idaho
Tax-Exempt Fund’s annualized expense ratio of 0.92% (based on the most
recent semi-annual period of June 1, 2004 through November 30, 2004), multiplied
by the average account value of $1,011.45 over the period.
          40
              
              November 30, 2004 Annual ReportREPORT of
            REGISTERED
            INDEPENDENT  PUBLIC ACCOUNTING FIRM
          To the Shareowners and Board of Trustees
  Idaho Tax-Exempt Fund
  We have audited the accompanying statement of assets and liabilities of the
  Idaho Tax-Exempt Fund, a series of shares of the Saturna Investment Trust,
  including the schedules of investments as of November 30, 2004, and the
related
  statements of operations for the year then ended, the changes in net assets
  for each of the two years in the period then ended, and the financial
highlights
  for the five years in the period then ended. These financial statements and
  financial highlights are the responsibility of the Trust’s management.
  Our responsibility is to express an opinion on these financial statements and
  financial highlights based on our audits. 
  We conducted our audits in accordance with the standards of the Public Company
  Accounting Oversight Board (United States). Those standards require that we
  plan and perform the audit to obtain reasonable assurance about whether the
  financial statements and financial highlights are free of material
misstatement.
  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, 2004, by correspondence with the
custodian
  and broker. Our audit also includes assessing the accounting principles used
  and significant estimates made by management, as well as evaluating the
overall
  financial statement presentation. We believe that our audits provide a
reasonable
  basis for our opinion. 
  In our opinion the financial statements and financial highlights referred to
  above present fairly, in all material respects, the financial position of
Idaho
  Tax-Exempt Fund as of November 30, 2004, the results of its operations for
  the year then ended, the changes in net assets for each of the two years in
  the period then ended, and the financial highlights for each of the five years
  in the period then ended, in conformity with accounting principles generally
  accepted in the United States of America./s/ signature*Tait, Weller & Baker*Philadelphia, Pennsylvania 
  December 17, 2004
          November 30, 2004 Annual Report
                
                41
          Trustees
and Officers (unaudited)Name and (age)
        Address
              Position(s) held with
      Trust and Length of 
      Time Served
              Principal Occupation(s) 
      during past 5 Years
              Number of Portfolios in
      Fund Complex
      overseen by Trustee
              Other Directorships
      Held by TrusteeINDEPENDENT TRUSTEESA. Herbet Ershig (66)
      22 Shorewood Drive
      Bellingham, WA 98225
              Independent Trustee
        since 1997
              President (now retired),
Ershigs, Inc.
        (industrial fabrication)
              Five
              NoneGary A. Goldfogel (46)
      1500 N. State Street
      Bellingham, WA 98226
              Independent Trustee
        since 1995
              Medical Examiner
(pathologist)
        Owner, Avocet Environmental Testing (laboratory)
              Five
              NoneJohn E. Love (72)
      1002 Spokane Street
      Garfield, WA 99130
              Chairman;
                Independent Trustee
        since 1987
              Owner, J.E. Love Co., (agricultural equipment
manufacturer)
              Five
              NoneJohn S. Moore (73)
      346 Bayside Road
      Bellingham, WA 98225
              Independent Trustee
        since 1993
              Professor (now retired), College of Business and
Economics, Western Washington University
              Five
              NoneINTERESTED TRUSTEESNicholas F. Kaiser, CFA (58)
      1300 N. State Street
      Bellingham, WA 98225
              President;
                Trustee*
        since 1989
              President, Saturna Capital
Corporation
        President, Saturna Brokerage Services
              Seven
              Amana Mutual Funds
TrustOFFICERS WHO ARE NOT
TRUSTEESPhelps S. McIlvaine (51)
      1300 N. State Streeet
      Bellingham, WA 98225
              Vice President
        since 1994
              Vice President, Saturna Capital
Corporation
        Treasurer, Saturna Brokerage Services
              N/A
              N/AChrisopher R. Fankhauser (32)
      1300 N. State Street
      Bellingham, WA 98225
              Treasurer
        since 2002
              Manager of Operations, Saturna Capital
Corporation
              N/A
              N/AEthel B. Bartolome(32)
    1300 N. State Street
    Bellingham, WA 98225
              Secretary
      since 2001
              Corporate Administrator, Saturna Capital Corporation [since
                2000] 
    Administrator, Cytel Corporation [1994-1999]
              N/A
              N/AJames D. Winship, Esq. (56)
    5406 Diamond Place NE
    Bainbridge Island, WA 98110
              Chief Compliance Officer*
      since 2004
              Attorney
                Adjunct Professor, University of
    Washington and Seattle Pacific University (1999-2003)
              N/A
              N/ATerm of Office: Each Trustee serves
                for the lifetime of the Trust or until he dies, resigns, is
removed,
                or not re-elected by the shareowners. Each officer serves a
one-year
                term subject to annual reappointment by the Trustees. 
                The Fund’s Statement of Additional Information, available
                without charge by calling Saturna Capital at 800-SATURNA,
includes
                additional information about the Trustees.
                Saturna Capital Corporation is the Fund’s adviser and
Saturna
                Brokerage Services, Inc. is the Fund’s distributor.
                Mr. Kaiser is an interested person of the Fund by reason of his
                positions with the Fund’s adviser and distributor. 
                Mr. McIlvaine is the primary manager of the Idaho Tax-Exempt
                Fund. 
              *Holds same position with Amana Mutual Funds Trust.42
                
                November 30, 2004 Annual Report
          **RENEWAL OF INVESTMENT ADVISORY CONTRACT
(unaudited)**
            On September 20, 2004, the trustees of Saturna Investment Trust
approved
              continuation of Idaho Tax-Exempt Fund’s investment advisory
              and administrative services agreement with Saturna Capital
Corporation.
              In doing so, the board considered a number of factors and made
              specific determinations relevant to that approval.
            In addition to information provided throughout the year, the
trustees
            utilized a comparison of performance and fees of the Fund with the
            other Idaho tax-exempt mutual funds. The trustees found such
information
            helpful in establishing expectations regarding the performance of
            the adviser and whether to continue the advisory contract.
            In their review, the trustees noted that the Fund offers a full
range
            of high-quality investor services. An important factor in the
consideration
            by the trustees was the adviser’s ability and commitment to
            internally perform shareowner servicing, administration, accounting,
            marketing and distribution to maintain quality servicing at a
reasonable
            expense.
            The trustees found that the investment performance of the Fund was
            good. The board took into consideration the investment objectives
            and policies of the Fund.
            The trustees reviewed the fees and expenses of the Fund. They noted
            that the adviser’s fees are customary, fair and reasonable
            to shareowners. They considered the fees charged by the adviser to
            other kinds of accounts and the different services provided to those
            accounts. In addition, the trustees found the expense ratio was less
            than that of the other Idaho tax-exempt fund and to be advantageous
            to shareowners given the sizes of the funds, services provided and
            expenses incurred. They took into consideration the adviser’s
            avoidance of operational problems, such as those publicized at other
            funds in the last year. They noted that various Fund expenses,
outside
            the adviser’s control, were rising due to new mutual fund
industry
            regulations.
            The trustees found that the Fund continues to operate at a
substantial
            cost to the adviser. They know the adviser is relatively small,
operates
            roughly at break-even, and has a dedicated staff working at
considerably
            less than standard industry compensation levels. The trustees did
          not find any fall-out benefits from the Fund to the adviser.**AVAILABILITY OF FUND PORTFOLIO INFORMATION
              (unaudited)**(1) The Fund files a complete schedule of portfolio
holdings with the SEC for the first and third quarters of each fiscal year on
Form N-Q.
            (2) The Fund’s Forms N-Q is available on the SEC’s
website at http://www.sec.gov., and at www.saturna.com.
            (3) The Fund’s Forms N-Q may be reviewed and copied at the
SEC’s Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
            (4) The Fund makes a complete schedule of portfolio holdings after
the end of each month available to investors at http://www.saturna.com.
          November 30,
2004 Annual Report
              
              43Web:
http://www.saturna.com
                    E-mail: idaho@saturna.com
                  
                  
                  
                  
                  (logo)
                    SATURNA CAPITAL
                    Mutual Funds
                  1300 N. State Street
                    Bellingham, WA 98225-4730800/SATURNA(800/728-8762)888/732-6262
                    for automated assistance,
                    including fund prices
                  This report is issued for the information of the
shareowners
                    of the Fund. It is not authorized for distribution to
prospective
                    investors unless it is accompanied or preceded by an
effective
                    prospectus relating to the securities of the Fund. Idaho
Tax-Exempt
                    Fund is a series of Saturna Investment Trust.
                (graphic omitted)
                  
                  
                  
                  
                  
                  I D A H
OTAX-EXEMPT FUND
                  
                  
                  
                  
                  ANNUAL REPORTNovember 30, 2004
                  Saturna Brokerage Services,
Distributor
            44
                
                November 30, 2004 Annual Report
          Item 2. Code of Ethics.Registrant has adopted a code of ethics and is included
          with this submission as Exhibit (a).Item 3. Audit Committee Financial Expert.(a) (1) (i) The Trustees of Saturna Investment Trust
            determined, at their quarterly meeting of September 25, 2003, that
            the Trust has at least one audit committee financial expert serving
            on its audit committee. 
            (a) (2) (ii) Mr. John Moore, an independent Trustee (as defined for
          investment companies), was deemed qualified and agreed to serve.
          Item 4. Principal Accountant Fees
and Services.(a) Audit Fees
            For the fiscal years ending November 30, 2004 and 2003, the
aggregate
               audit fees billed for professional services rendered by the
principal

            accountant were $23,000, for each year.(b) Audit-Related Fees
            For the fiscal years ending November 30, 2004 and 2003, the
aggregate
             audit-related fees were $15,500 for each year. The nature

            of the services are: (1) auditing of the statements of assets and
             liabilities, related statements of operations and changes in net
            assets,
            and the financial highlights of each of the Funds; (2) auditing and
             reporting on the financial statements to be included in the
Amendment

            to the Funds Registration Statement, Form N-1A, to be filed
             with the Securities and Exchange Commission; (3) review of the
Amendment

            to the Registration Statement; and (4) issuance of a Report on
Internal
             Control Structure for inclusion in Form N-SAR.(c) Tax Fees
            For the fiscal years ending November 30, 2004 and 2003, the
aggregate
            tax fees billed for professional services rendered by the principal

           accountant were $7,500 for each year. Service includes preparation
            of the Funds federal and state income tax returns.(d) All Other Fees
            There were no other fees billed by the principal accountant for the
          fiscal years ending November 30, 2004 and 2003.(e)(1) Audit Committee Pre-Approval Policies and
            Procedures
            The following is an excerpt from the Amana Mutual Funds Trust Audit
            Committee Charter:
            D. Oversight of Independent Auditors
            3. Pre-approval of Audit and Non-Audit Services. Except as provided
            below, the Committees prior approval is necessary for the
engagement
            of the independent auditors to provide any audit or non-audit
services
            for the Trust and any non-audit services for any entity controlling,

            controlled by or under common control with Saturna that provides
ongoing
            services to the Trust (Saturna and each such entity, an
Adviser
            Affiliate) where the engagement relates directly to the
operations
            or financial reporting of the Trust. Non-audit services that qualify

            under the de minimis exception described in the Securities Exchange
            Act of 1934, as amended, and applicable rules thereunder, that were
            not pre-approved by the Committee, must be approved by the Committee

            prior to the completion of the audit. Pre-approval by the Committee
            is not required for engagements entered into pursuant to (a)
pre-approval
            policies and procedures established by the Committee, or (b)
pre-approval
            granted by one or more members of the Committee to whom, or by a
subcommittee
            to which, the Committee has delegated pre-approval authority,
provided
            in either case, that the Committee is informed of each such service
            at its next regular meeting.
          
          
          November 30, 2004 Annual Report
              
              45(e) (2) Percentages of Services
            One hundred percent of the services described in each of paragraphs
            (b) through (d) were approved by the audit committee pursuant to
paragraph
            (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.(f) Not applicable.(g) Not applicable.
            (h) Not applicable.Item 5. Audit Committee of Listed Registrants.The registrant has designated the independent members
            of the Saturna Investment Trust board of directors as the audit
committee.
            The members are: Herbert Ershig, Gary Goldfogel, John Love, and John

            Moore.Item 6. Schedule of Investments
            The schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
          Item 7. Disclosure of Proxy Voting
Policies and Procedures for Closed-End Management Investment
Companies.Not applicable.
          Item 8. Portfolio Managers of
Closed-End
                Management Investment Companies.Not applicable.
          Item 9. Purchases of Equity
Securities
                by Closed-End Management Investment Company and Affiliated
Purchasers.Not applicable.
          Item 10. Submission of Matters to
                a Vote of Security Holders.Not applicable.
          Item 11. Controls and
Procedures.(a) Internal control over financial reporting is under the
          supervision of the principal executive and financial officers. On
December
          29,
          2004, Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser
          (Treasurer), reviewed
          the internal control procedures for Saturna Investment TrustFunds
Trust
          and found them reasonable and adequate.
          (b) No change.
          Item 12. ExhibitsExhibits included with this filing:
          (a) Code of Ethics.
          (b) Certifications.
            (1) Nicholas Kaiser, President, Saturna Investment Trust
          (2) Christopher Fankhauser, Treasurer, Saturna Investment Trust
          46
              
              November 30, 2004 Annual ReportSIGNATURES
          Pursuant to the requirements of the Securities
Exchange
            Act of 1934 and the Investment Company Act of 1940, the registrant
            has duly caused this report to be signed on its behalf by the
undersigned,
            thereunto duly authorized.SATURNA INVESTMENT TRUST
            By:
            /s/ Nicholas Kaiser
            Nicholas Kaiser, President 
            Date: January 28, 2005
            Pursuant to the requirements of the Securities Exchange Act of 1934
            and the Investment Act of 1940, this report has been signed below
            by the following persons on behalf of the registrant and in the
capacities
            and on the dates indicated.
          By:
            /s/ Nicholas Kaiser
            Nicholas Kaiser, President 
            Date: January 28, 2005
            By:
            /s/ Christopher Fankhouser 
            Christopher Fankhouser, Treasurer
          Date: January 28, 2005
          
          
          November 30, 2004 Annual Report
              
              47