Saturna Investment Trust Form N-CSR Annual Report November 30, 2019

FORM N-CSR

N-CSR 1 sit-ncsr20191130.htm SATURNA INVESTMENT TRUST FORM N-CSR ANNUAL REPORT Saturna Investment Trust Form N-CSR Annual Report November 30, 2019

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

November 30, 2019

Annual Report

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

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

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

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

Nicole Trudeau
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, 2019

Date of reporting period: November 30, 2019

Item 1. Annual Report.

LOGO


Performance Summary (as of December 31, 2019)		(unaudited)


						Expense Ratio¹

Average Annual Total Returns	1 Year	3 Year	5 Year	10 Year	15 Year	Gross	Net

Sextant Short-Term Bond Fund (STBFX)	4.01%	1.85%	1.62%	1.54%	2.30%	0.91%	0.60%

FTSE USBIG Govt/Corp 1-3 Year Index	4.00%	2.11%	1.64%	1.50%	2.44%		n/a

Sextant Bond Income Fund (SBIFX)	10.22%	4.64%	3.24%	4.20%	4.00%	0.84%	0.65%

FTSE US Broad Investment-Grade Bond Index	8.86%	4.08%	3.08%	3.73%	4.22%		n/a

Sextant Core Fund (SCORX)	19.99%	9.46%	5.52%	6.11%	n/a		0.88%

Dow Jones Moderate US Portfolio Index	18.60%	8.98%	6.60%	7.75%	6.43%		n/a

Sextant Global High Income Fund (SGHIX)	11.47%	8.32%	5.74%	n/a	n/a	0.97%	0.75%

S&P Global 1200 Index	28.22%	13.39%	9.50%	9.99%	7.63%		n/a

Sextant Growth Fund Investor Shares (SSGFX)	36.38%	18.78%	10.29%	11.68%	8.81%		0.92%

Sextant Growth Fund Z Shares (SGZFX)	36.77%	n/a	n/a	n/a	n/a		0.70%

S&P 500 Index	31.49%	15.26%	11.69%	13.55%	8.99%		n/a

Sextant International Fund Investor Shares (SSIFX)	26.85%	15.20%	9.00%	5.83%	6.69%		1.05%

Sextant International Fund Z Shares (SIFZX)	27.19%	n/a	n/a	n/a	n/a		0.84%

MSCI EAFE Index	22.66%	10.10%	6.18%	5.99%	5.33%		n/a

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

Z Shares of Sextant Growth and International Funds began operations June 2, 2017.

A note about risk: Please see Notes to Financial Statements beginning on page 54 for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see the Funds’ prospectus or each Fund’s summary prospectus.

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

By regulation, expense ratios shown in this table are as stated in the Funds’ most recent prospectus, which is dated March 27, 2019, and incorporate results for the fiscal year ended November 30, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different periods. Also by regulation, the performance in this table represents the most recent quarter-end performance rather than performance through the Funds’ most recent fiscal period.

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

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


Fellow Shareowners:		January 24, 2020

Following a mixed performance in 2018, US equity markets posted substantial returns for the year ended November 30, 2019. The S&P 500 Index rose 16.11%, while the Dow Jones Moderate US Portfolio Index gained 11.53%. Foreign markets were also positive, with the MSCI EAFE Index returning 13.04% and the S&P Global 1200 Index climbing 14.97%. Fixed-income markets were more subdued but still well into positive territory, with the FTSE USBIG Bond Index gaining 8.55% and the shorter-term FTSE USBIG Government/Corporate 1-3 Year Index gaining 4.53%.

The Sextant Funds performed respectably compared to these indices, with most funds outperforming their respective benchmarks. For the year ended November 30, 2019, Sextant Growth Fund Investor Shares gained 21.81%, Sextant International Fund Investor Shares gained 18.82%, Sextant Core Fund gained 13.04%, Sextant Global High Income Fund gained 7.06%, Sextant Bond Income Fund gained 12.45%, and Sextant Short-Term Bond Fund gained 4.64%.

The annualized expense ratios of the six no-12b-1 fee Sextant Fund share classes range from 0.55% to 0.90%. Saturna Capital helped by capping expenses for the Sextant Short-Term, Sextant Bond Income, and Sextant Global High Income Funds. Overall assets were up 34.36% to $194.16 million.

Morningstar Awards Sextant Top Sustainability Ratings

The Morningstar Sustainability Rating^™ for funds gives investors around the world a way to compare fund portfolios based on a standardized measure of sustainability. These ratings are calculated using fund holdings data underpinned with company-level environmental, social, and governance (ESG) information from Sustainalytics, a leading provider of ESG research. Of the four Sextant funds Morningstar rated, one received the top “5 Globe” Sustainability Rating and two received a “4 Globe” above average rating, reflecting Saturna Capital’s emphasis on sustainability when making portfolio investment decisions. Investors are cautioned, however, that more than 200 vendors offer “sustainable” investments data, and that no single global measurement prevails. See page 5 for the details.

LOGO

Going Forward

2019 was a great year for equity markets, with the S&P 500 Index returning 31.49% through December 31, 2019 – the best annual profit since 2013. At Saturna, we’re not forecasting 2020 to generate the outsized gains seen in 2019. Still, we enter the new decade optimistically.

It’s rare for the market to experience downturns or big profits following a year when returns exceed 25%. Since 1927, the S&P 500 experienced downturns in only 8% of the years following a year with returns in excess of 25%. Over this same period, only three years saw repeated returns greater than 25%. While statistics may support our forecast, we note “past returns may not indicate future performance.” Why then do we believe 2020 will follow a similar course of decent returns? Four reasons: the four-year US presidential election cycle, calming global trade tensions, a reduction of Brexit’s uncertainties, and accommodative yet stretched global monetary policies. The economy continues in a “goldilocks” state: low unemployment, low inflation, low interest rates, and lower taxes.

After minimal debate, both parties in the US Congress agreed to bigger spending and deficits, and the economy is roaring. Presidential election politicking gets our juices flowing from all sides of the spectrum. Then, as the country moves from primaries to the general election, an incumbent’s narrative always pulls the opposition toward the middle.

Also awaiting the election returns, the US-China trade war should see reduced agitations. As President Trump looks to claim victory and President Xi takes advantage of US election related pressures, the two sides were compelled to sign an agreement. The truce calls for China to increase imports of US farm goods and the US to decrease tariffs on Chinese products.

Brexit will also have continued impact through 2020. The UK leaving the European Union on January 31, 2020, will not mark the end of the process. As the UK “gets Brexit done” this month, we should notice bounces in their economy. However, details of the trade agreement, and uncertainty related to it, will likely produce volatility in 2020 as the December deadline approaches.

2019 marked a year of renewed expansionary monetary policy as fears of recession sprouted across the globe. These fears led the Federal Reserve to cut interest rates while

central banks elsewhere amassed record levels of negative yielding debt during the summer of 2019. In turn, low to negative interest rates injected fuel into equities, igniting the record bull market. Although the amount of negative yielding debt has since been cut, central banks are operating with less dry powder to reignite the economy should fear of recession renew. We expect that in 2020 central banks will play the part of observer as they balance the need to keep tools on hand for an economic downturn with the want to see 2019’s stimulus work its way through the financial system.

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

Respectfully,

(photo omitted)

Jane Carten,

President

(photo omitted)

Gary Goldfogel,

Independent Board Chairman



Sextant Funds Portfolio Management

(photo omitted)	Nicholas Kaiser MBA, CFA^® Sextant International Fund Portfolio Manager	(photo omitted)	Phelps McIlvaine Sextant Short-Term Bond Fund Sextant Bond Income Fund Sextant Core Fund Portfolio Manager

(photo omitted)	Scott Klimo CFA^® Sextant Growth Fund Portfolio Manager Sextant International Fund Deputy Portfolio Manager	(photo omitted)	Bryce Fegley CFA^®, CIPM^® Sextant Global High Income Fund Portfolio Manager

(photo omitted)	Patrick Drum MBA, CFA^®, CFP^® Sextant Short-Term Bond Fund Sextant Bond Income Fund Sextant Global High Income Fund Deputy Portfolio Manager	(photo omitted)	Christopher Paul MBA, CFA^® Sextant Core Fund Portfolio Manager


Morningstar Sustainability Ratings^™		(unaudited)		As of November 30, 2019

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



Sextant International Fund		Sextant Core Fund

Investor Shares (SSIFX)	Ø Ø Ø Ø Ø	SCORX	Ø Ø Ø Ø Ø

Z Shares (SIFZX)	Ø Ø Ø Ø Ø

7th percentile among 395 Foreign Large Blend Funds		16th percentile among 643 Allocation 50%-70% Equity Funds

Sextant Growth Fund		Sextant Global High Income Fund

Investor Shares (SSGFX)	Ø Ø Ø Ø Ø	SGHIX	Ø Ø Ø Ø Ø

Z Shares (SGZFX)	Ø Ø Ø Ø Ø	67th percentile among 378 World Allocation Funds

27th percentile among 1,223 Large Growth Funds

		The Sextant Bond Income and Sextant Short-Term Bond Funds were not rated by Morningstar for the period.

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

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

^© 2020 Morningstar^®. All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Morningstar Sustainability Ratings and Portfolio Sustainability Scores are as of November 30, 2019. The Morningstar Sustainability Rating^™ is intended to measure how well the issuing companies of the securities within a fund’s portfolio are managing their environmental, social, and governance (“ESG”) risks and opportunities relative to the fund’s Morningstar category peers. The Morningstar Sustainability Rating calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability Score^™. The Morningstar Portfolio Sustainability Score is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund’s rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. A Sustainability Rating is assigned to any fund that has more than half of its underlying assets rated by Sustainalytics and is within a Morningstar Category with at least 10 scored funds; therefore, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. Portfolios receive a Morningstar Portfolio Sustainability Score and Sustainability Rating one month and six business days after their reported as-of date based on the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics’ ESG scores from the same month as the portfolio as-of date.

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


Sextant International Fund			100%
Sextant Core Fund			83%
Sextant Growth Fund			100%
Sextant Global High Income Fund			71%

The Funds’ portfolios are actively managed and are subject to change, which may result in different Morningstar Sustainability Scores and Ratings.

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


Performance Summary (as of November 30, 2019)		(unaudited)


						Expense Ratio¹

Average Annual Total Returns	1 Year	3 Year	5 Year	10 Year	15 Year	Gross	Net

Sextant Short-Term Bond Fund (STBFX)	4.64%	1.90%	1.48%	1.43%	2.29%	0.91%	0.60%

FTSE USBIG Govt/Corp 1-3 Year Index	4.53%	2.06%	1.54%	1.42%	2.44%		n/a

Sextant Bond Income Fund (SBIFX)	12.45%	4.90%	3.41%	4.04%	4.10%	0.84%	0.65%

FTSE US Broad Investment-Grade Bond Index	10.97%	4.16%	3.11%	3.56%	4.30%		n/a

Sextant Core Fund (SCORX)	13.04%	9.25%	4.88%	6.04%	n/a		0.88%

Dow Jones Moderate US Portfolio Index	11.53%	8.55%	6.04%	7.66%	6.49%		n/a

Sextant Global High Income Fund (SGHIX)	7.06%	8.00%	5.02%	n/a	n/a	0.97%	0.75%

S&P Global 1200 Index	14.97%	13.04%	8.40%	9.82%	7.65%		n/a

Sextant Growth Fund Investor Shares (SSGFX)	21.81%	17.99%	9.52%	11.81%	8.86%		0.92%

Sextant Growth Fund Z Shares (SGZFX)	22.22%	n/a	n/a	n/a	n/a		0.70%

S&P 500 Index	16.11%	14.90%	10.97%	13.44%	9.02%		n/a

Sextant International Fund Investor Shares (SSIFX)	18.82%	15.23%	7.74%	5.77%	6.93%		1.05%

Sextant International Fund Z Shares (SIFZX)	19.14%	n/a	n/a	n/a	n/a		0.84%

MSCI EAFE Index	13.04%	10.18%	4.76%	5.81%	5.41%		n/a

Sextant Short-Term Bond Fund


*Performance Summary*				(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant Short-Term Bond Fund		4.64%		1.48%		1.43%		0.91%

FTSE USBIG Govt/Corp 1-3 Year Index		4.53%		1.54%		1.42%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2009, to an identical amount invested in the FTSE USBIG Govt/Corp 1-3 Year Index, a broad-based index of shorter-term investment grade US government and corporate bond prices. The graph shows that an investment in the Fund would have risen to $11,531 versus $11,513 in the index.

Past performance does not guarantee future results. The “Growth of $10,000” graph and “Average Annual Returns” performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018, before fee waivers. The actual expense ratio, shown in the most recent prospectus after fee waivers was 0.60%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

Fund Objective

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


Top 10 Holdings

% of Total Net Assets

United States Treasury Note (3.625% due 02/15/2021)			8.3%

United States Treasury Note (2.875% due 04/30/2025)			7.2%

United States Treasury Note (2.50% due 08/15/2023)			4.7%

McCormick & Co. (2.70% due 08/15/2022)			4.6%

Honeywell International (4.25% due 03/01/2021)			4.2%

Loews (2.625% due 05/15/ 2023)			4.1%

Burlington Northern Santa Fe (3.05% due 09/01/2022)			3.7%

AvalonBay Communities (2.85% due 03/15/2023)			3.7%

Qualcomm (2.60% due 01/30/2023)			3.7%

Gilead Sciences (2.55% due 09/01/2020)			3.6%

Portfolio Diversification

% of Total Net Assets

Government Bonds

23.4%

∎

Financials

14.1%

∎

Consumer Staples

13.8%

∎

Health Care

13.1%

∎

Technology

11.3%

∎

Industrials

6.9%

∎

Consumer Discretionary

5.5%

∎

Materials

3.6%

∎

Energy

2.9%

∎

Utilities

2.3%

∎

Other assets (net of liabilities)

3.1%

∎

Sextant Short-Term Bond Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

For the fiscal year ended November 30, 2019, the Sextant Short-Term Bond Fund returned 4.64%, which was lower than the 4.87% average return of its Morningstar Short-Term Bond category peer group. For the five years ended November 30, the Fund provided a 1.48% annualized total return versus 1.86% for its Morningstar category peer group. During the year, the Fund’s share price grew from $4.94 to $5.08. The ratio of net investment income (after fee waivers) to net assets rose from 1.44% to 1.75%. Fund shares outstanding rose 2.53, and Fund assets rose 7.91%. The Fund’s 30-day yield was 1.33%, and its unsubsidized 30-day yield was 0.82%. Reflecting Saturna Capital’s subsidies to cap operating expenses, the Fund’s effective expense ratio was reduced to 0.60% from 0.87%.

Factors Affecting Past Performance

2019 began with the US Federal Reserve Bank policy at an inflection point. Good US economic growth and low US unemployment justified policy normalization, meaning shrinking the Fed’s balance sheet (quantitative tightening) and moving the Federal Funds rates higher. However, softening global growth, trade tensions, a flat yield curve, a strong US dollar, and faltering financial asset prices required the opposite policy response. By November 2019, US policy makers had reversed rate normalization, setting Federal Funds at 1.50%, below their level in June 2018. Quantitative tightening was halted. The policy dichotomy between US economic strength and global economic weakness was resolved with global concerns and the urgent need for greater US dollar liquidity prevailing.

This rapid policy reversal triggered a “risk on” response in financial markets. The Fed succeeded in steepening the US Treasury yield curve, discounting a flat curve’s recession signal. Reinvigorated investors poured money into financial assets, and especially income producing assets such as high-yield bonds. Reinvestment risk suddenly re-emerged at the most urgent of investment objectives. Corporate bond spreads narrowed significantly, returning to previous lows in 1998, 2003, and 2018. High-yield spreads narrowed significantly more than investment grade spreads. US 30-yr bond yields established a new low, eclipsing the previous low in 2016.

More recently, the US Federal Reserve expanded short-term liquidity funding to address funding shortfalls in the US repo market. An unusual structural balance of payments deficit caused by record US government deficit spending, restrictive banking regulations, and weak foreign demand for US Treasury paper combined to create the funding deficit.

In echoes of 2008, the European Central Bank, Japan, and Britain also amplified their own monetary easing policies. With interest rates falling and corporate bond spreads narrowing simultaneously, bond markets produced exceptional returns.

Looking Forward

US economic growth and inflation will likely remain relatively benign, while progress on Brexit and the US China trade negotiations will relax some anxieties. New monetary and fiscal stimulus from the US, Britain, Japan, and others will be deployed to fund debt burdens, fiscal deficits, as well as boost economic growth and inflation. In the last decade, monetary and fiscal stimulus policies initially pushed bond yields higher. However, these reflation policies have a mixed record of producing lasting results. Once these policies run their course, inflation and bond yields may very well fall again, boosting bond prices. Despite these reflation initiatives, negative nominal and real rates will not disappear. Reinvestment risk will remain the most urgent concern for bond investors over the medium to long term. Easing US Federal Reserve monetary policy will remain the first line of defense against global economic weakness. Short rates will remain low.

For yield starved investors looking for a relatively calm mooring, short-term bonds may offer the comfort of low correlation that leads to better decision making when many asset classes offer persistently high valuations and low potential returns.

Management Fee Calculations

The Sextant Short-Term Bond Fund calculates the performance part of its management fee by comparing the Fund’s return to the average return of Morningstar’s^™ Short-Term Bond category. The Fund’s 12-month return of 4.64% was less than 1% percent below the Morningstar^™ category average of 4.87% at month-end November 30, 2019. Therefore, the basic annual management fee of 0.50% remained unchanged for the month of December 2019. Note that the management fee is partially waived due to the adviser’s cap on total Fund expenses.

Sextant Short-Term Bond Fund


Schedule of Investments						As of November 30, 2019

Corporate Bonds – 73.5%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Consumer Discretionary

Alibaba Holding Group	3.125% due 11/28/2021		$350,000		$356,710		3.2%

Ford Motor Credit	3.157% due 08/04/2020		250,000		250,928		2.3%

					607,638		5.5%

Consumer Staples

Church & Dwight	2.875% due 10/01/2022		260,000		265,001		2.4%

Costco Wholesale	2.75% due 05/18/2024		385,000		397,558		3.6%

Estee Lauder	2.35% due 08/15/2022		350,000		353,594		3.2%

McCormick & Co.	2.70% due 08/15/2022		500,000		507,714		4.6%

					1,523,867		13.8%

Energy

Schlumberger Investment	3.65% due 12/01/2023		310,000		326,135		2.9%

					326,135		2.9%

Financials

AvalonBay Communities	2.85% due 03/15/2023		400,000		409,468		3.7%

Loews	2.625% due 05/15/2023		450,000		458,250		4.1%

Paccar Financial	2.05% due 11/13/2020		350,000		350,581		3.2%

Simon Property Group	2.00% due 09/13/2024		350,000		348,051		3.1%

					1,566,350		14.1%

Health Care

AbbVie	2.50% due 05/14/2020		250,000		250,414		2.3%

Astrazeneca	2.375% due 01/16/2020		155,000		155,597		1.4%

Celgene	2.25% due 08/15/2021		300,000		301,531		2.7%

Gilead Sciences	2.55% due 09/01/2020		400,000		401,832		3.6%

Teva Pharmaceutical	3.65% due 11/10/2021		350,000		342,846		3.1%

					1,452,220		13.1%

Industrials

Burlington Northern Santa Fe	3.05% due 09/01/2022		400,000		410,961		3.7%

CSX Corporation	4.25% due 06/01/2021		350,000		359,392		3.2%

					770,353		6.9%

Materials

3M	2.00% due 06/26/2022		400,000		401,719		3.6%

					401,719		3.6%

Technology

Adobe Systems	4.75% due 02/01/2020		379,000		380,759		3.4%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	9

Sextant Short-Term Bond Fund

Schedule of Investments

As of November 30, 2019

Corporate Bonds – 73.5%

Coupon / Maturity

Face Amount

Market Value

Percentage of Assets

Technology (continued)

Honeywell International

4.25% due 03/01/2021

$450,000

$463,459

4.2%

Qualcomm

2.60% due 01/30/2023

400,000

406,126

3.7%

1,250,344

11.3%

Utilities

PacifiCorp

2.95% due 06/01/2023

250,000

256,930

2.3%

256,930

2.3%

Total Corporate Bonds

$8,155,556

73.5%

Government Bonds – 23.4%

Coupon / Maturity

Face Amount

Market Value

Percentage of Assets

United States Treasury Notes

United States Treasury Note

2.625% due 05/15/2021

$355,000

$359,771

3.2%

United States Treasury Note

3.625% due 02/15/2021

900,000

920,461

8.3%

United States Treasury Note

2.50% due 08/15/2023

500,000

515,801

4.7%

United States Treasury Note

2.875% due 04/30/2025

750,000

796,699

7.2%

2,592,732

23.4%

Total Government Bonds

2,592,732

23.4%

Total investments

(Cost is $10,648,234)

10,748,288

96.9%

Other assets (net of liabilities)

340,601

3.1%

Total net assets

$11,088,889

100.0%

Bond Quality Diversification

(unaudited)

% of Total Net Assets

Rated “AAA”

23.4%

∎

Rated “AA-”

3.6%

∎

Rated “A+”

15.2%

∎

Rated “A”

14.2%

∎

Rated “A-”

22.3%

∎

Rated “BBB+”

3.2%

∎

Rated “BBB”

9.6%

∎

Rated “BB+”

2.3%

∎

Rated “BB”

3.1%

∎

Other assets (net of liabilities)

3.1%

∎

Credit ratings are the lesser of S&P Global Ratings or Moody’s Investors Service. If neither S&P nor Moody’s rate a particular security, that security is categorized as not rated (except for US Treasury securities and securities issued or backed by US agencies which inherit the credit rating for the US government). Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and below are lower-rated securities (junk bonds). Ratings apply to the creditworthiness of the issuers of the underlying securities and not the Fund or its shares. Ratings may be subject to change.




10	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Short-Term Bond Fund

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $10,648,234)			$10,748,288

Cash			266,182

Dividends and interest receivable			74,625

Other assets			6,247

Receivable for Fund shares sold			1,859

Receivable from adviser			44


Total assets			11,097,245


Liabilities

Accrued retirement plan custody fee			3,138

Accrued audit expenses			3,000

Accrued insurance expenses			685

Accrued legal expenses			510

Accrued trustee expenses			362

Accrued Chief Compliance Officer expenses			334

Accrued other expenses			279

Distributions payable			48


Total liabilities			8,356


Net Assets			$11,088,889



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$10,995,696

Total distributable earnings			93,193


Net assets applicable to Fund shares outstanding			$11,088,889


Fund shares outstanding			2,181,911

Net asset value, offering, and redemption price per share			$5.08

Statement of Operations


Year ended November 30, 2019



Investment income

Interest income	$252,039

Miscellaneous income	269


Total investment income	252,308


Expenses

Investment adviser fees	53,500

Filing and registration fees	18,335

Audit fees	6,307

Retirement plan custodial fees	3,477

Legal fees	2,659

Trustee fees	2,608

Chief Compliance Officer expenses	2,591

Printing and posting fees	1,933

Other expenses	1,492

Custodian fees	432


Total gross expenses	93,334


Less adviser fees waived	(28,421	)

Less custodian fee credits	(407	)


Net expenses	64,506


Net investment income	$187,802





Net realized gain from investments	$6,528

Net increase in unrealized appreciation on investments	299,329


Net gain on investments	$305,857



Net increase in net assets resulting from operations	$493,659




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	11

Sextant Short-Term Bond Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$187,802		$147,275

Net realized gain (loss) on investment	6,528		(16,794	)

Net increase (decrease) in unrealized appreciation	299,329		(110,471	)


Net increase in net assets	493,659		20,010




Distributions to shareowners	(187,268	)	(150,192	)



Capital share transactions

Proceeds from sales of shares	1,406,263		974,206

Value of shares issued in reinvestment of dividends	186,358		150,567

Cost of shares redeemed	(1,085,719	)	(1,423,649	)


Total capital share transactions	506,902		(298,876	)


Total increase (decrease) in net assets	813,293		(429,058	)



Net assets

Beginning of year	10,275,596		10,704,654

End of year	$11,088,889		$10,275,596



Shares of the Fund sold and redeemed

Number of shares sold	279,784		196,541

Number of shares issued in reinvestment of dividends	36,950		30,411

Number of shares redeemed	(215,988	)	(286,428	)


Net increase (decrease) in number of shares outstanding	100,746		(59,476	)


Financial Highlights			For year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		2015

Net asset value at beginning of year	$4.94		$5.00		$5.02		$5.02		$5.04

Income from investment operations

Net investment income	0.09		0.07		0.06		0.05		0.05

Net gains (losses) on securities (both realized and unrealized)	0.14		(0.06	)	(0.02	)	0.00	^A	(0.02	)


Total from investment operations	0.23		0.01		0.04		0.05		0.03


Less distributions

Dividends (from net investment income)	(0.09	)	(0.07	)	(0.06	)	(0.05	)	(0.05	)

Capital gains distribution	-		(0.00	)^A	-		-		-


Total distributions	(0.09	)	(0.07	)	(0.06	)	(0.05	)	(0.05	)




Net asset value at end of year	$5.08		$4.94		$5.00		$5.02		$5.02


Total return	4.64%		0.26%		0.87%		1.06%		0.67%

Ratios / supplemental data

Net assets ($000), end of year	$11,089		$10,276		$10,705		$10,326		$7,488

Ratio of expenses to average net assets

Before fee waivers and custodian fee credits	0.87%		0.91%		1.01%		1.15%		1.21%

After fee waivers	0.61%		0.61%		0.68%		0.76%		0.76%

After fee waivers and custodian fee credits	0.60%		0.60%		0.68%		0.75%		0.75%

Ratio of net investment income after fee waivers and custodian fee credits to average net assets	1.75%		1.44%		1.26%		1.05%		1.06%

Portfolio turnover rate	32%		36%		31%		11%		13%

^A	Amount is less than $0.01




12	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Bond Income Fund


*Performance Summary*		(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant Bond Income Fund		12.45%		3.41%		4.04%		0.84%

FTSE US Broad Investment-Grade Bond Index		10.97%		3.11%		3.56%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2009, to an identical amount invested in the FTSE US Broad Investment-Grade Bond Index, a broad-based index of medium and long-term investment grade bond prices. The graph shows that an investment in the Fund would have risen to $14,857 versus $14,191 in the index.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.65%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

Fund Objective

The objective of the Bond Income Fund is current income.


Top 10 Holdings

% of Total Net Assets

United States Treasury Bond (4.25% due 05/15/2039)			8.3%

United States Treasury Bond (5.375% due 02/15/2031)			4.4%

Apple (4.50% due 02/23/2036)			3.4%

Microsoft (4.20% due 11/03/2035)			3.4%

Intel (4.00% due 12/15/2032)			3.3%

Burlington Northern Santa Fe (5.05% due 03/01/2041)			3.1%

United States Treasury Note (3.625% due 02/15/2021)			3.0%

Praxair (3.55% due 11/07/2042)			3.0%

Puget Sound Energy (4.434% due 11/15/2041)			2.8%

United Technologies (6.05% due 06/01/2036)			2.7%

Portfolio Diversification

% of Total Net Assets

Government Bonds

24.5%

∎

Health Care

11.7%

∎

Municipal Bonds

10.6%

∎

Technology

10.1%

∎

Industrials

9.2%

∎

Utilities

7.5%

∎

Financials

6.2%

∎

Energy

5.8%

∎

Consumer Discretionary

4.6%

∎

Materials

3.0%

∎

Consumer Staples

2.2%

∎

Other Assets (net of liabilities)

4.6%

∎

Sextant Bond Income Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

For the fiscal year ended November 30, 2019, the Sextant Bond Income Fund returned 12.45%, lower than the 22.73% average return of its Morningstar Long-Term Bond category peer group. For the five years ended November 30, the Fund provided a 3.41% annualized total return versus 5.81% for its Morningstar category peer group. During the year, the Fund’s share price rose from $4.89 to $5.34 and the ratio of net investment income (after fee waivers) to net assets declined from 3.20% to 2.96%. Fund shares outstanding rose 5.42%, and fund assets rose 13.91%. The Fund’s 30-day yield was 2.13%, and its unsubsidized 30-day yield was 1.84%. Reflecting Saturna Capital’s subsidies to cap operating expenses, the Fund’s effective expense ratio was reduced to 0.55% from 0.71%.

Factors Affecting Past Performance

This rapid policy reversal triggered a “risk on” response in financial markets. The Fed succeeded in steepening the US Treasury yield curve, discounting a flat curve’s recession signal. Reinvigorated investors poured money into financial assets, and especially income producing assets such as high-yield bonds. Reinvestment risk suddenly re-emerged as the most urgent of investment objectives. Corporate bond spreads narrowed significantly, returning to previous lows in 1998, 2003, and 2018. High-yield spreads narrowed significantly more than investment grade spreads. US 30-yr bond yields established a new low, eclipsing the previous low in 2016.

Looking Forward

For yield starved investors looking for a relatively calm mooring, bonds may offer the comfort of low correlation that leads to better decision making when many asset classes offer persistently high valuations and low potential returns.

Management Fee Calculations

The Sextant Bond Income Fund calculates the performance part of its management fee by comparing the Fund’s return to the return of Morningstar’s^™ Long-Term Bond category. The Fund’s 12-month return of 12.45% was more than 2% below the Morningstar^™ category average of 22.73% at month-end November 30, 2019. Therefore, the basic annual management fee of 0.50% was decreased by 0.20% to 0.30% for the month of December 2019. Note that the management fee is partially waived due to the adviser’s cap on total Fund expenses.

Sextant Bond Income Fund


Schedule of Investments						As of November 30, 2019

Corporate Bonds – 60.3%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Consumer Discretionary

Lowe’s	5.80% due 10/15/2036		$250,000		$312,863		2.5%

VF	6.00% due 10/15/2033		200,000		258,775		2.1%

					571,638		4.6%

Consumer Staples

Unilever Capital	5.90% due 11/15/2032		200,000		271,747		2.2%

					271,747		2.2%

Energy

Baker Hughes	6.875% due 01/15/2029		100,000		124,507		1.0%

Canadian Natural Resources	6.45% due 06/30/2033		225,000		286,151		2.3%

Statoil	7.15% due 01/15/2029		224,000		304,803		2.5%

					715,461		5.8%

Financials

Affiliated Managers Group	3.50% due 08/01/2025		250,000		260,658		2.1%

Bank Of New York Mellon MTN	3.30% due 08/23/2029		250,000		263,332		2.1%

UBS AG Stamford CT	7.75% due 09/01/2026		200,000		250,825		2.0%

					774,815		6.2%

Health Care

Becton Dickinson	6.70% due 08/01/2028		240,000		298,360		2.4%

Johnson & Johnson	4.95% due 05/15/2033		226,000		286,927		2.3%

Medtronic Inc	4.375% due 03/15/2035		260,000		311,484		2.5%

Merck & Co.	6.50% due 12/01/2033		215,000		309,726		2.5%

Teva Pharmaceutical	3.65% due 11/10/2021		250,000		244,890		2.0%

					1,451,387		11.7%

Industrials

Boeing	6.125% due 02/15/2033		215,000		286,145		2.3%

Burlington Northern Santa Fe	5.05% due 03/01/2041		310,000		385,448		3.1%

Deere & Co.	8.10% due 05/15/2030		95,000		138,669		1.1%

United Technologies	6.05% due 06/01/2036		250,000		338,145		2.7%

					1,148,407		9.2%

Materials

Praxair	3.55% due 11/07/2042		350,000		372,778		3.0%

					372,778		3.0%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	15

Sextant Bond Income Fund


Schedule of Investments						As of November 30, 2019

Corporate Bonds – 60.3%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Technology

Apple	4.50% due 02/23/2036		$350,000		$427,926		3.4%

Intel	4.00% due 12/15/2032		360,000		416,946		3.3%

Microsoft	4.20% due 11/03/2035		350,000		416,965		3.4%

					1,261,837		10.1%

Utilities

Alabama Power	4.15% due 08/15/2044		200,000		227,740		1.8%

Entergy Louisiana	5.40% due 11/01/2024		200,000		229,313		1.8%

Florida Power & Light	5.95% due 10/01/2033		100,000		134,457		1.1%

Puget Sound Energy	4.434% due 11/15/2041		300,000		347,575		2.8%

					939,085		7.5%



Total Corporate Bonds					$7,507,155		60.3%



Government Bonds – 24.5%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Foreign Government Bonds

Quebec Canada Yankee	7.125% due 02/09/2024		$175,000		$210,954		1.7%

					210,954		1.7%

United States Treasury Bonds

United States Treasury Bond	5.25% due 02/15/2029		170,000		220,230		1.8%

United States Treasury Bond	6.25% due 05/15/2030		75,000		106,893		0.8%

United States Treasury Bond	4.25% due 05/15/2039		770,000		1,038,898		8.3%

United States Treasury Bond	3.125% due 11/15/2041		145,000		169,310		1.4%

United States Treasury Bond	3.375% due 11/15/2048		60,000		75,073		0.6%

United States Treasury Bond	6.125% due 08/15/2029		225,000		312,275		2.5%

United States Treasury Bond	5.375% due 02/15/2031		400,000		544,703		4.4%

					2,467,382		19.8%

United States Treasury Notes

United States Treasury Note	3.625% due 02/15/2021		370,000		378,412		3.0%

					378,412		3.0%



Total Government Bonds					$3,056,748		24.5%

Continued on next page.




16	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Bond Income Fund

Schedule of Investments

As of November 30, 2019

Municipal Bonds – 10.6%

Coupon / Maturity

Face Amount

Market Value

Percentage of Assets

General Obligation

Blaine Co. ID SCD #61 Hailey

5.25% due 08/01/2020

$250,000

$255,650

2.1%

Idaho Hsg & Fin GARVEE BAB A-2

5.379% due 07/15/2020

180,000

183,467

1.5%

San Marcos Texas ULTD GO BAB

6.028% due 08/15/2030

200,000

205,994

1.6%

Springville UT GO BAB

5.30% due 05/01/2031

240,000

243,250

1.9%

888,361

7.1%

Municipal Leases

Johnson Co KS Bldg Ls/Pr RevBAB

4.60% due 09/01/2026

250,000

253,765

2.0%

Oklahoma City Fin Auth Ed Lease Rev

6.60% due 09/01/2022

160,000

178,230

1.5%

431,995

3.5%

Total Municipal Bonds

$1,320,356

10.6%

Total investments

(Cost = $11,132,690)

$11,884,259

95.4%

Other assets (net of liabilities)

569,294

4.6%

Total net assets

$12,453,553

100.0%

Bond Quality Diversification

(unaudited)

% of Total Net Assets

Rated “AAA”

30.5%

∎

Rated “AA+”

3.4%

∎

Rated “AA”

10.9%

∎

Rated “A+”

11.3%

∎

Rated “A”

14.6%

∎

Rated “A-”

10.8%

∎

Rated “BBB+”

7.2%

∎

Rated “BBB”

2.3%

∎

Rated “BB+”

2.4%

∎

Rated “BB”

2.0%

∎

Other assets (net of liabilities)

4.6%

∎




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	17

Sextant Bond Income Fund


Statement of Assets and Liabilities
As of November 30, 2019



Assets

Investments in securities, at value (Cost $11,132,690)			$11,884,259

Cash			443,124

Interest receivable			118,150

Receivable for Fund shares sold			8,665

Other assets			10,955


Total assets			12,465,153


Liabilities

Accrued audit expenses			3,709

Distributions payable			2,695

Accrued retirement plan custody fee			2,516

Accrued advisory fees			1,237

Accrued insurance expenses			475

Accrued other operating expenses			439

Accrued Chief Compliance Officer expenses			243

Accrued legal expenses			189

Accrued trustee expenses			92

Payable for Fund shares redeemed			5


Total liabilities			11,600


Net assets			$12,453,553



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$11,705,518

Total distributable earnings			748,035


Net assets applicable to Fund shares outstanding			$12,453,553


Fund shares outstanding			2,333,514

Net asset value, offering, and redemption price per share			$5.34


Statement of Operations
Year ended November 30, 2019



Investment income

Interest income	$397,306


Total investment income	397,306


Expenses

Investment adviser fees	48,988

Filing and registration fees	10,432

Audit fees	6,760

Retirement plan custodial fees	2,753

Chief Compliance Officer expenses	2,513

Trustee fees	2,364

Legal fees	2,322

Printing and postage fees	1,829

Other expenses	1,675

Custodian fees	456


Total gross expenses	80,092


Less adviser fees waived	(17,370	)

Less custodian fee credits	(429	)


Net expenses	62,293


Net investment income	$335,013





Net realized gain from investments	$41,830

Net increase in unrealized appreciation on investments	$933,335


Net gain on investments	$975,165



Net increase in net assets resulting from operations	$1,310,178




18	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Bond Income Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$335,013		$309,853

Net realized gain on investments	41,830		-

Net increase (decrease) in unrealized appreciation	933,335		(480,051	)


Net increase (decrease) in net assets	1,310,178		(170,198	)




Distributions to shareowners	(334,236	)	(309,851	)



Capital share transactions

Proceeds from sales of shares	1,865,586		3,232,820

Value of shares issued in reinvestment of dividends	328,512		306,251

Cost of shares redeemed	(1,649,526	)	(1,621,814	)


Total capital share transactions	544,572		1,917,257


Total increase (decrease) in net assets	1,520,514		1,437,208



Net assets

Beginning of year	10,933,039		9,495,831

End of year	$12,453,553		$10,933,039



Shares of the Fund sold and redeemed

Number of shares sold	361,579		650,577

Number of shares issued in reinvestment of dividends	63,399		61,384

Number of shares redeemed	(327,334	)	(322,372	)


Net increase in number of shares outstanding	97,644		389,589


Financial Highlights	For year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		2015

Net asset value at beginning of year	$4.89		$5.14		$5.07		$5.07		$5.26

Income from investment operations

Net investment income	0.15		0.16		0.16		0.15		0.17

Net gains (losses) on securities (both realized and unrealized)	0.45		(0.25	)	0.07		0.00	^A	(0.19	)


Total from investment operations	0.60		(0.09	)	0.23		0.15		(0.02	)


Less distributions

Dividends (from net investment income)	(0.15	)	(0.16	)	(0.16	)	(0.15	)	(0.17	)


Total distributions	(0.15	)	(0.16	)	(0.16	)	(0.15	)	(0.17	)




Net asset value at end of year	$5.34		$4.89		$5.14		$5.07		$5.07


Total return	12.45%		(1.78	)%	4.51%		2.91%		(0.47	)%

Ratios / supplemental data

Net assets ($000), end of year	$12,454		$10,933		$9,496		$9,703		$7,998

Ratio of expenses to average net assets

Before fee waivers and custodian fee credits	0.71%		0.86%		0.98%		1.01%		1.03%

After fee waivers	0.55%		0.66%		0.78%		0.89%		0.90%

After fee waivers and custodian fee credits	0.55%		0.65%		0.78%		0.88%		0.90%

Ratio of net investment income after fee waivers and custodian fee credits to average net assets	2.96%		3.20%		3.05%		2.85%		3.21%

Portfolio turnover rate	21%		0%		4%		11%		4%

^A	Amount is less than $0.01




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	19

Sextant Core Fund


*Performance Summary*		(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant Core Fund		13.04%		4.88%		6.04%		0.88%

Dow Jones Moderate US Portfolio Index		11.53%		6.04%		7.66%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2009, to an identical amount invested in the Dow Jones Moderate US Portfolio Index, a broad-based index of stock and bond prices. The graph shows that an investment in the Fund would have risen to $17,979 versus $20,923 in the index.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus, which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

Fund Objective

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


Portfolio Diversification

% of Total Net Assets

Sectors	Equity	Fixed Income

Health Care	12.0%	4.0%

Industrials	8.4%	4.4%

Government Bonds	0.0%	12.2%

Technology	9.9%	1.9%

Consumer Discretionary	7.0%	2.3%

Financials	3.3%	2.9%

Utilities	4.1%	2.1%

Communications	3.7%	1.3%

Materials	4.7%	0.0%

Consumer Staples	4.1%	0.0%

Energy	2.6%	0.0%

Municipal Bonds	0.0%	2.6%

Total	59.8%	33.7%


Top 10 Holdings

% of Total Net Assets

United States Treasury Bond (6.25% due 08/15/2023)			3.0%

Welltower (4.25% due 04/15/2028)			2.3%

United States Treasury Note (2.75% due 11/15/2023)			2.2%

PacificCorp (6.00% due 01/15/2039)			2.1%

Lowe’s (4.25% due 09/15/2044)			1.6%

Boeing (5.875% due 02/15/2040)			1.6%

Gilead Sciences (3.70% due 04/01/2024)			1.6%

Union Pacific Corp (3.375% due 02/01/2035)			1.5%

Amgen			1.5%

United States Treasury Note (2.00% due 11/30/2022)			1.5%

Asset Allocation

% of Total Net Assets

Equity Securities

59.8%

∎

Fixed Income Securities

33.7%

∎

Other assets (net of liabilities)

6.5%

∎

Sextant Core Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

The Sextant Core Fund completed fiscal year 2019 with a return of 13.04% for the period versus 11.53% for its Dow Jones Moderate Portfolio Index benchmark.

(photo omitted)

Factors Affecting Past Performance

Equities

The Sextant Core Fund’s mandate specifies a 60% allocation to equity securities, with two-thirds being US-domiciled companies and one-third foreign-domiciled companies. The Fund’s average equity allocation for the year was 61.7%. During the year, the Fund increased the number of equity positions, increased the average dividend yield, maintained the average position size, and increased the average market capitalization. The Energy, Consumer Discretionary, and Utilities sector were the largest contributors, offset by the Financial and Industrial sectors. The largest sector allocation, Technology, contributed modest performance for the year.

Fixed Income

This rapid policy reversal triggered a “risk on” response in financial markets. The Fed succeeded in steepening the US Treasury yield curve, discounting a flat curve’s recession signal. Reinvigorated investors poured money into financial assets, and especially income producing assets such as high-yield bonds. Reinvestment risk suddenly re-emerged as the most urgent of investment objectives. Corporate bond spreads narrowed significantly, returning to previous lows in 1998, 2003, and 2018. High-yield spreads narrowed significantly more than investment grade spreads. US 30-yr bond yields established a new low, eclipsing the previous low in 2016.

Looking Forward

US economic growth and inflation will likely remain relatively benign, while progress on Brexit and the US China trade negotiations will relax some anxieties. New monetary and fiscal stimulus from the US, Britain, Japan, and others will be deployed to fund debt burdens, fiscal deficits, as well as boost economic growth and inflation. In the last decade, monetary and fiscal stimulus policies initially pushed bond yields higher. However, these reflation policies have a mixed record of producing lasting results. Once these policies run their course, inflation and bond yields may very well fall again, boosting bond prices and those of income producing equities. Despite these reflation initiatives, negative nominal and real rates will not disappear.

With regard to equities, we expect to maintain the number of positions and emphasize the Fund’s value and income characteristics. The recent strong equity market performance inflated valuations and constrains the quantity of candidates for inclusion in the portfolio. The Fund’s fiscal 2019 turnover of 28% will likely be similar in 2020, as the Fund pursues its mandate of quality, attractively valued, income producing common equities.

Management Fee Calculations

The Sextant Core Fund calculates the performance part of its management fee by comparing the Fund’s return to the return of Morningstar’s^™ Allocation – 50% to 70% Equity category. The Fund’s 12-month return of 13.13% was more than 2% above the Morningstar^™ category average of 10.92% as of November 30, 2019. Therefore, the basic annual management fee of 0.50% was increased by 0.20% to 0.70% for the month of December 2019.

Sextant Core Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 59.8%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Communications

Internet Media

Alphabet, Class A²		100		$77,588		$130,409	United States		0.8%

Telecom Carriers

AT&T		4,400		150,315		164,472	United States		1.0%

BCE		3,300		140,233		158,631	Canada		0.9%

Verizon Communications		2,700		149,436		162,648	United States		1.0%


				439,984		485,751			2.9%

				517,572		616,160			3.7%

Consumer Discretionary

Apparel, Footwear & Accessory Design

VF		2,400		153,720		212,496	United States		1.2%

Automobiles

Subaru ADR		11,700		130,741		153,229	Japan		0.9%

Home Products Stores

Home Depot		600		114,158		132,306	United States		0.8%

Lowe’s		1,400		86,638		164,234	United States		1.0%



				200,796		296,540			1.8%

Specialty Apparel Stores

Industria de Diseno Textil ADR		12,000		152,848		186,720	Spain		1.1%

Ross Stores		1,750		125,298		203,263	United States		1.2%

TJX Companies		2,200		109,838		134,486	United States		0.8%



				387,984		524,469			3.1%

				873,241		1,186,734			7.0%

Consumer Staples

Beverages

PepsiCo		1,350		139,207		183,371	United States		1.1%

Household Products

Procter & Gamble		1,150		93,040		140,369	United States		0.8%

Unilever ADR		2,900		132,633		172,521	United Kingdom		1.0%



				225,673		312,890			1.8%

Packaged Food

Nestle ADR		1,900		147,925		197,486	Switzerland		1.2%

				512,805		693,747			4.1%

Energy

Exploration & Production

ConocoPhillips		1,490		71,757		89,311	United States		0.5%

Continued on next page.




22	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Core Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 59.8%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Energy (Continued)

Integrated Oils

Equinor ADR		10,200		$179,884		$189,006	Norway		1.1%

Total ADR		3,182		170,950		167,182	France		1.0%



				350,834		356,188			2.1%

				422,591		445,499			2.6%

Financials

Banks

PNC Financial Services Group		600		42,748		91,926	United States		0.6%

Toronto-Dominion Bank		1,500		51,382		86,700	Canada		0.5%



				94,130		178,626			1.1%

Consumer Finance

Ally Financial		4,200		108,138		133,728	United States		0.8%

Diversified Banks

JP Morgan Chase		500		43,088		65,880	United States		0.4%

P&C Insurance

Chubb		1,130		151,600		171,172	Switzerland		1.0%

				396,956		549,406			3.3%

Health Care

Biotech

Amgen		1,100		179,932		258,192	United States		1.5%

Large Pharma

Bristol-Myers Squibb		3,300		168,719		187,902	United States		1.1%

GlaxoSmithKline ADR		4,100		170,001		186,468	United Kingdom		1.1%

Johnson & Johnson		1,800		168,551		247,482	United States		1.5%

Merck & Co		850		71,440		74,103	United States		0.4%

Novartis ADR		900		81,252		83,070	Switzerland		0.5%

Novo Nordisk ADR		2,450		81,372		137,567	Denmark		0.8%

Pfizer		5,500		187,996		211,860	United States		1.3%



				929,331		1,128,452			6.7%

Managed Care

UnitedHealth Group		800		189,963		223,896	United States		1.3%

Medical Devices

Abbott Laboratories		2,700		97,630		230,715	United States		1.4%

Medical Equipment

Koninklijke Philips ADR		3,800		137,793		176,624	Netherlands		1.1%

				1,534,649		2,017,879			12.0%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	23

Sextant Core Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 59.8%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Industrials

Aircraft & Parts

L3Harris Technologies		600		$124,513		$120,654	United States		0.7%

United Technologies		900		117,591		133,506	United States		0.8%



				242,104		254,160			1.5%

Commercial & Residential Building Equipment & Systems

Honeywell International		1,200		85,271		214,260	United States		1.3%

Johnson Controls International		4,550		183,666		194,876	United States		1.1%



				268,937		409,136			2.4%

Flow Control Equipment

Parker Hannifin		1,050		121,236		208,730	United States		1.2%

Industrial Distribution & Rental

Fastenal		2,800		64,603		99,456	United States		0.6%

Marine Shipping

Frontline²		8,000		84,960		89,840	Norway		0.5%

Rail Freight

Canadian National Railway		2,000		77,527		182,180	Canada		1.1%

Kansas City Southern Industries		1,200		145,800		182,904	United States		1.1%



				223,327		365,084			2.2%

				1,005,167		1,426,406			8.4%

Materials

Basic & Diversified Chemicals

BASF ADR		4,000		76,520		74,840	Germany		0.4%

Linde		900		85,777		185,589	Ireland		1.1%



				162,297		260,429			1.5%

Precious Metal Mining

Agnico-Eagle Mines		2,000		114,365		119,200	Canada		0.7%

Barrick Gold		7,000		124,899		117,600	Canada		0.7%

Newmont Mining		2,900		113,890		111,360	United States		0.7%



				353,154		348,160			2.1%

Specialty Chemicals

PPG Industries		700		74,662		90,188	United States		0.5%

RPM International		1,400		44,141		103,222	United States		0.6%



				118,803		193,410			1.1%

				634,254		801,999			4.7%

Technology

Application Software

Open Text US		3,900		146,122		169,962	Canada		1.0%

Communications Equipment

Apple		600		56,454		160,350	United States		1.0%

Cisco Systems		2,000		89,540		90,620	United States		0.5%



				145,994		250,970			1.5%

Continued on next page.




24	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Core Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 59.8%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Technology (continued)

Consumer Electronics

Nintendo ADR		1,600		$ 78,824		$ 77,424	United States		0.5%

Infrastructure Software

Micro Focus International ADR		6,304		96,708		92,480	United Kingdom		0.6%

Microsoft		900		112,498		136,242	United States		0.8%

Oracle		3,100		124,402		174,034	United States		1.0%



				333,608		402,756			2.4%
IT Services

Amdocs Limited		3,000		196,205		207,900	United States		1.2%

Semiconductor Devices

Infineon Technologies ADR		3,275		59,576		69,823	Germany		0.4%

Intel		2,000		70,360		116,100	United States		0.7%

Microchip Technology		600		44,621		56,724	United States		0.3%

Micron Technology²		1,400		50,457		66,514	United States		0.4%

NXP Semiconductors		600		43,722		69,348	Netherlands		0.4%

Qualcomm		1,000		51,858		83,550	United States		0.5%

Xilinx		1,000		67,334		92,780	United States		0.6%



				387,928		554,839			3.3%

				1,288,681		1,663,851			9.9%

Utilities

Integrated Utilities

Dominion Energy		2,800		212,366		232,708	United States		1.4%

Duke Energy		2,600		229,507		229,242	United States		1.3%

NextEra Energy		1,000		72,153		233,820	United States		1.4%



				514,026		695,770			4.1%

				514,026		695,770			4.1%



Total Common Stocks				$7,699,942		$10,097,451			59.8%

Corporate Bonds – 18.9%

Coupon / Maturity

Face Amount

Market Value

Percentage of Assets

Communications

Bellsouth Capital Funding

7.875% due 02/15/2030

$150,000

$211,750

1.3%

211,750

1.3%

Consumer Discretionary

Lowe’s

4.25% due 09/15/2044

250,000

270,918

1.6%

Stanford University

4.013% due 05/01/2042

100,000

118,466

0.7%

389,384

2.3%

Financials

General Electric Capital

5.35% due 04/15/2022

101,000

106,839

0.6%

Welltower

4.25% due 04/15/2028

350,000

384,570

2.3%

491,409

2.9%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	25

Sextant Core Fund


Schedule of Investments						As of November 30, 2019

Corporate Bonds – 18.9%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Health Care

Becton Dickinson	3.125% due 11/08/2021		$100,000		$101,775		0.6%

Cardinal Health	3.50% due 11/15/2024		155,000		161,444		1.0%

Celgene	2.875% due 08/15/2020		140,000		140,963		0.8%

Gilead Sciences	3.70% due 04/01/2024		250,000		264,835		1.6%

					669,017		4.0%

Industrials

Boeing	5.875% due 02/15/2040		200,000		270,781		1.6%

Legrand France Yankee	8.50% due 02/15/2025		170,000		218,563		1.3%

Union Pacific	3.375% due 02/01/2035		250,000		260,393		1.5%

					749,737		4.4%

Technology

Cisco Systems	2.90% due 03/04/2021		100,000		101,285		0.6%

Qualcomm	3.25% due 05/20/2027		220,000		230,564		1.3%

					331,849		1.9%

Utilities

PacifiCorp	6.00% due 01/15/2039		250,000		346,559		2.1%

					346,559		2.1%



Total Corporate Bonds					$3,189,705		18.9%



Government Bonds – 12.2%	Coupon /Maturity	Face Amount		Market Value		Percentage of Assets

United States Treasury Bonds

United States Treasury Bond	6.25% due 08/15/2023		$438,000		$510,424		3.0%

United States Treasury Bond	4.50% due 02/15/2036		137,000		185,613		1.1%

United States Treasury Bond	3.625% due 02/15/2044		155,000		196,711		1.2%

					892,748		5.3%

United States Treasury Notes

United States Treasury Note	1.50% due 06/15/2020		150,000		149,900		0.9%

United States Treasury Note	2.75% due 11/15/2023		350,000		364,984		2.2%

United States Treasury Note	2.00% due 05/31/2024		80,000		81,300		0.5%

United States Treasury Note	2.125% due 08/31/2020		204,000		204,693		1.2%

United States Treasury Note	2.00% due 11/30/2022		250,000		252,852		1.5%

United States Treasury Note	1.625% due 04/30/2023		106,000		106,046		0.6%

					1,159,775		6.9%



Total Government Bonds					$2,052,523		12.2%

Continued on next page.




26	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Core Fund

Schedule of Investments

As of November 30, 2019

Municipal Bonds – 2.6%

Coupon / Maturity

Face Amount

Market Value

Percentage of Assets

General Obligation

Lake Washington SD 414 WA BAB

4.906% due 12/01/2027

$100,000

$101,516

0.6%

Skagit SD #1

4.613% due 12/01/2022

100,000

103,511

0.6%

205,027

1.2%

State Education

New York City Housing Dev

2.65% due 05/01/2021

100,000

100,983

0.6%

100,983

0.6%

Utility Networks

Tacoma WA Elec Sys Revenue

5.966% due 01/01/2035

100,000

134,814

0.8%

134,814

0.8%

Total Municipal Bonds

$440,824

2.6%

Total investments

(Cost = $13,098,929)

$15,780,503

93.5%

Other assets (net of liabilities)

1,094,161

6.5%

Total net assets

$16,874,664

100.0%

¹	Country of domicile

²	Non-income producing security

ADR: American Depositary Receipt


Bond Quality Diversification	(unaudited)

% of Total Net Assets

Rated “AAA”	14.1%	∎
Rated “AA”	0.6%	∎
Rated “AA-”	0.8%	∎
Rated “A+”	2.7%	∎
Rated “A”	2.9%	∎
Rated “A-”	2.9%	∎
Rated “BBB+”	6.0%	∎
Rated “BBB”	3.1%	∎
Rated “BB+”	0.6%	∎
Equity	59.8%	∎
Other assets (net of liabilities)	6.5%	∎



Credit ratings are the lesser of S&P Global Ratings or Moody’s Investors Service. If neither S&P nor Moody’s rate a particular security, that security is categorized as not rated (except for US Treasury securities and securities issued or backed by US agencies which inherit the credit rating for the US government). Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and below are lower-rated securities (junk bonds). Ratings apply to the creditworthiness of the issuers of the underlying securities and not the Fund or its shares. Ratings may be subject to change.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	27

Sextant Core Fund


Statement of Assets and Liabilities
As of November 30, 2019



Assets

Investments in securities, at value (Cost $13,098,929)	$15,780,503

Cash	1,007,074

Dividends and interest receivable	82,901

Receivable for Fund shares sold	12,343

Other assets	8,662


Total assets	16,891,483


Liabilities

Accrued advisory fees	6,823

Accrued audit expenses	4,750

Accrued retirement plan custody fee	2,717

Accrued Chief Compliance Officer expenses	934

Accrued insurance expenses	855

Accrued other operating expenses	437

Accrued trustee expenses	303


Total liabilities	16,819


Net assets	$16,874,664



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)	$13,224,975

Total distributable earnings	3,649,689


Net assets applicable to Fund shares outstanding	$16,874,664


Fund shares outstanding	1,178,845

Net asset value, offering, and redemption price per share	$14.31



Statement of Operations
Year ended November 30, 2019



Investment income

Dividend income (net of foreign tax of $15,607)	$212,711

Interest income	160,179


Total investment income	372,890


Expenses

Investment adviser fees	91,370

Filing and registration fees	15,926

Audit fees	8,263

Chief Compliance Officer expenses	3,801

Retirement plan custodial fees	3,068

Trustee fees	2,979

Legal fees	2,731

Printing and postage fees	2,268

Other operating expenses	1,942

Custodian fees	591


Total gross expenses	132,939


Less custodian fee credits	(560	)


Net expenses	132,379


Net investment income	$240,511





Net realized gain from investments and foreign currency	$755,524

Net increase in unrealized appreciation on investments and foreign currency	858,747


Net gain on investments	$1,614,271



Net increase in net assets resulting from operations	$1,854,782




28	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Core Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$240,511		$175,436

Net realized gain on investment	755,524		145,000

Net increase (decrease) in unrealized appreciation	858,747		(280,915	)


Net increase in net assets	1,854,782		39,521




Distributions to shareowners	(179,880	)	(166,943	)



Capital share transactions

Proceeds from sales of shares	3,901,597		2,728,274

Value of shares issued in reinvestment of dividends	179,880		166,943

Cost of shares redeemed	(1,733,010	)	(2,896,024	)


Total capital share transactions	2,348,467		(807	)


Total increase (decrease) in net assets	4,023,369		(128,229	)



Net assets

Beginning of year	12,851,295		12,979,524

End of year	$16,874,664		$12,851,295



Shares of the Fund sold and redeemed

Number of shares sold	292,063		211,487

Number of shares issued in reinvestment of dividends	14,891		12,931

Number of shares redeemed	(129,374	)	(222,368	)


Net increase in number of shares outstanding	177,580		2,050


Financial Highlights	For year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016	2015

Net asset value at beginning of year	$12.84		$12.99		$11.45		$11.25	$12.43

Income from investment operations

Net investment income	0.19		0.18		0.16		0.18	0.18

Net gains (losses) on securities (both realized and unrealized)	1.45		(0.16	)	1.55		0.02	(0.72	)


Total from investment operations	1.64		0.02		1.71		0.20	(0.54	)


Less distributions

Dividends (from net investment income)	(0.17	)	(0.17	)	(0.17	)	-	(0.18	)

Distributions (from capital gains)	-		-		-		-	(0.46	)


Total distributions	(0.17	)	(0.17	)	(0.17	)	-	(0.64	)




Net asset value at end of year	$14.31		$12.84		$12.99		$11.45	$11.25


Total return	13.04%		0.16%		15.15%		1.78%	(4.38	)%

Ratios / supplemental data

Net assets ($000), end of year	$16,875		$12,851		$12,980		$8,563	$8,435

Ratio of expenses to average net assets

Before custodian fee credits	0.90%		0.88%		0.84%		1.05%	1.02%

After custodian fee credits	0.90%		0.87%		0.83%		1.04%	1.01%

Ratio of net investment income after custodian fee credits to average net assets	1.63%		1.41%		1.52%		1.52%	1.44%

Portfolio turnover rate	28%		30%		34%		39%	24%




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	29

Sextant Global High Income Fund


*Performance Summary*		(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant Global High Income Fund²		7.06%		5.02%		n/a		0.97%

S&P Global 1200 Index		14.97%		8.40%		9.82%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 30, 2012 (the Fund’s inception), to an identical amount invested in the S&P Global 1200 Index, a global stock market index covering nearly 70% of the world’s equity markets. The graph shows that an investment in the Fund would have risen to $14,882 versus $21,112 in the index.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus, which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.75%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

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

Fund Objective

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


Portfolio Diversification

	% of Total Net Assets

Sectors		Equity	Fixed Income

Financials		6.7%	8.9%

Government Bonds		0.0%	10.3%

Communications		7.0%	2.7%

Energy		8.1%	1.5%

Fixed Income		0.0%	7.7%

Materials		3.8%	2.7%

Consumer Discretionary		1.8%	2.6%

Health Care		4.1%	0.0%

Industrials		1.6%	2.5%

Technology		1.8%	1.1%

Consumer Staples		0.0%	2.2%

Municipal Bonds		0.0%	2.1%

Total		34.9%	44.3%


Top 10 Holdings

% of TotaI Net Assets

United States Treasury Note (2.50% due 01/15/2022)			7.7%

Mexico Bonos Desarrollo (6.50% due 06/10/2021)			4.4%

Aviva ADR			3.0%

AT&T			2.8%

Jefferies Group (5.125% due 01/20/2023)			2.7%

T-Mobile (6.50% due 01/15/2026)			2.7%

Burlington Northern Santa Fe (5.05% due 03/01/2041)			2.5%

GlaxoSmithKline ADR			2.3%

Equinor ADR			2.3%

Royal Dutch Shell ADR, Class A			2.2%

Asset Allocation

% of Total Net Assets

Equity Securities

34.9%

∎

LOGO

Fixed Income Securities

44.3%

∎

Other assets (net of liabilities)

20.8%

∎

Sextant Global High Income Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

The Sextant Global High Income Fund completed fiscal year 2019 with a total return of 7.06%. The Fund paid a qualified income distribution of 21¢, a regular income distribution of 19¢, a short-term capital gain distribution of 23¢, and a long-term capital gain distribution of 29¢. These income and capital gain distributions amounted to a total of 92¢ per share, and represented a 3.70% ratio of net investment income (after fee waivers) to average net assets for the fiscal year. The 30-day SEC yield was 2.44% at fiscal year-end.

The Fund underperformed its equity benchmark, the S&P Global 1200 Index, which returned 14.97%. It outperformed its fixed-income benchmark, the Bloomberg-Barclays Global High Yield Corporate Bond Index, which returned 9.65%; it underperformed its Morningstar World Allocation peer group, which returned 8.82%.

Factors Affecting Past Performance

After a bout of volatility and a sharp sell-off in the last month of 2018, equity and bond markets were able to enjoy smoother sailing for much of the remaining fiscal year through November 2019. There was somewhat of a scare during the summer months as manufacturing contracted sharply in response to trade worries and a temporary inversion in the US yield curve, but the broader economies did not roll over. In the US, continued robust employment trends buoyed the services economy, and helped the US equity market outperform non-US equities for the ninth year in the past 10. This remarkable run has resulted in the S&P 500 Index outperforming the MSCI EAFE Index of non-US developed market stocks by 7.63% on an annualized basis over the past 10 years (as of November 29, 2019).

In accordance with the Fund’s investment policies, as well as our inclination to view market events through a contrarian lens, we have kept the Fund’s center of gravity away from US equities, but long-term structural impediments outside the US have continued to impact relative performance of non-US stocks. At the same time, the performance of the US stock market itself has been increasingly driven by a handful of technology-oriented companies, namely Alphabet (i.e., Google), Amazon, Apple, Facebook, and Microsoft, which we like to call the “tech platform monopolies.” Of the above five companies, only Apple and Microsoft pay a dividend, and the yield on both is below 1.5%, which falls well short of what we would consider appropriate for our “high income” mandate, so our ability to participate in the full extent of the US equity market’s performance has been limited by the income as well as geographic allocation mandates.

Looking Forward

Equities

As we turn the corner on the last decade, we note that of the largest 10 global companies by market capitalization at the beginning of each of the prior three decades (1990, 2000, and 2010), only two or three of them remained on that list 10 years later. At present, US companies comprise eight of the top 10, while the tech platform companies we highlighted above — with the addition of their Chinese counterparts Alibaba and Tencent — comprise seven of the top 10. While it is possible that the monopolistic competitive positions of these companies will allow them to endure at the top of the leader board 10 years hence, history at least warrants caution, as political and regulatory hurdles may constrain growth, not to mention the capacity of innovation in technology itself to disrupt technology leaders.

Fixed-Income

Interest rates, as well as risk spreads, spent much of the past decade well below historical averages. Demographic trends (aging populations and slowing birthrates) may continue to lead to disinflationary pressures as we enter the new decade, and we do not expect a sharp increase in interest rates over the short or medium terms.

Foreign Currencies

We believe the US dollar remains overvalued versus many foreign currencies on the basis of purchasing power and will continue to favor currencies where inflation-adjusted rates are higher than in the US, and where we believe there is a valuation tailwind to provide a margin of safety.

Management Fee Calculations

The Sextant Global High Income Fund calculates the performance part of its management fee by comparing the Fund’s return to the return of Morningstar’s^™ “World Allocation” category. The Fund’s 12-month return of 7.06% was more than one percent but less than two percent below the Morningstar^™ category average of 8.82% at month-end November 30, 2018. Therefore, the basic annual management fee of 0.50% was decreased by 0.10% to 0.40% for the month of December 2019. Note that significant portions of the Fund’s expenses are waived due to the adviser’s cap on total Fund expenses.

Sextant Global High Income Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 34.9%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Communications

Telecom Carriers

AT&T		7,500		$229,195		$280,350	United States		2.8%

Orange ADR		12,500		188,424		204,000	France		2.1%

SK Telecom ADR		9,000		149,321		206,280	Korea		2.1%

				566,940		690,630			7.0%

Consumer Discretionary

Automobiles

Subaru ADR		13,601		157,273		178,126	Japan		1.8%

				157,273		178,126			1.8%

Energy

Exploration & Production

CNOOC Limited ADR		1,100		155,570		159,742	China		1.6%

Goodrich Petroleum²		200		-		1,964	United States		0.0%	³



				155,570		161,706			1.6%

Integrated Oils

Equinor ADR		12,000		218,810		222,360	Norway		2.3%

Royal Dutch Shell ADR, Class A		3,800		241,426		218,462	Netherlands		2.2%

Total ADR		3,800		202,606		199,652	France		2.0%



				662,842		640,474			6.5%

				818,412		802,180			8.1%

Financials

Banks

Skandinaviska Enskilda Banken, Class A		20,000		198,047		171,505	Sweden		1.7%

Diversified Banks

Itau Unibanco Holding ADR, Class A		25,000		144,759		203,500	Brazil		2.0%

Life Insurance

Aviva ADR		28,000		249,760		292,880	United States		3.0%

				592,566		667,885			6.7%

Health Care

Large Pharma

GlaxoSmithKline ADR		5,000		216,373		227,400	United Kingdom		2.3%

Novartis ADR		1,900		96,814		175,370	Switzerland		1.8%

				313,187		402,770			4.1%

Industrials

Infrastructure Construction

Hopewell Highway Infrastructure		325,000		168,010		156,915	Hong Kong		1.6%

				168,010		156,915			1.6%

Continued on next page.




32	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Global High Income Fund

Schedule of Investments

As of November 30, 2019

Common Stocks – 34.9%

Number of Shares

Cost

Market Value

Country¹

Percentage of Assets

Materials

Base Metals

South 32 ADR

19,000

$134,773

$173,090

Australia

1.7%

Steel Raw Material Suppliers

BHP Billiton ADR

4,000

$155,038

$206,120

Australia

2.1%

289,811

379,210

3.8%

Technology

Infrastructure Software

Micro Focus International

12,000

216,541

176,040

United Kingdom

1.8%

216,541

176,040

1.8%

Total Common Stock

$3,122,740

$3,453,756

34.9%

Corporate Bonds – 24.2%

Coupon /Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Communications

T-Mobile

6.50% due 01/15/2026

$250,000

$267,500

United States

2.7%

267,500

2.7%

Consumer Discretionary

ADT

4.125% due 06/15/2023

150,000

153,750

United States

1.6%

GAP

5.95% due 04/12/2021

100,000

103,832

United States

1.0%

257,582

2.6%

Consumer Staples

Grupo Bimbo

4.875% due 06/27/2044

200,000

215,319

Mexico

2.2%

215,319

2.2%

Energy

Petrobras International Finance

6.875% due 01/20/2040

50,000

57,375

Brazil

0.6%

Petrobras International Finance

6.75% due 01/27/2041

80,000

90,908

Brazil

0.9%

148,283

1.5%

Financials

Canadian Imperial Bank

3.42% due 01/26/2026

CAD 250,000

190,787

Canada

1.9%

Jefferies Group

5.125% due 01/20/2023

250,000

269,661

United States

2.7%

Lincoln National

(3 month LIBOR plus 2.04%)⁴

4.00588% due 04/20/2067

250,000

206,250

United States

2.1%

Royal Bank of Scotland

6.125% due 12/15/2022

200,000

217,083

United Kingdom

2.2%

883,781

8.9%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	33

Sextant Global High Income Fund

Schedule of Investments

As of November 30, 2019

Corporate Bonds – 24.2%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Industrials

Burlington Northern Santa Fe

5.05% due 03/01/2041

$200,000

$248,676

United States

2.5%

248,676

2.5%

Materials

Allegheny Technologies

7.875% due 08/15/2023

150,000

166,688

United States

1.7%

AngloGold Ashanti Holdings

5.375% due 04/15/2020

100,000

100,930

South Africa

1.0%

267,618

2.7%

Technology

Hewlett Packard

4.65% due 12/09/2021

100,000

104,512

United States

1.1%

104,512

1.1%

Total Corporate Bonds

$2,393,271

24.2%

Government Bonds – 18.0%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Foreign Government Bonds

Colombia Republic

8.375% due 02/15/2027

125,000

145,373

Colombia

1.5%

Federal Republic of Brazil

12.50% due 01/05/2022

BRL 500,000

135,141

Brazil

1.3%

Federal Republic of Brazil

8.50% due 01/05/2024

BRL 750,000

194,263

Brazil

2.0%

Mexico Bonos Desarrollo

6.50% due 06/10/2021

MXN 8,500,000

432,142

Mexico

4.4%

Republic of Argentina – Global Bond

7.50% due 04/22/2026

250,000

108,437

Argentina

1.1%

1,015,356

10.3%

United States Treasury Note

United States Treasury Note

2.50% due 01/15/2022

750,000

763,594

United States

7.7%

763,594

7.7%

Total Government Bonds

$1,778,950

18.0%

Municipal Bonds – 2.1%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Real Estate

Colony TX NFM Sales Tax Revenue

7.00% due 10/01/2027

100,000

102,283

United States

1.0%

Colony TX NFM Sales Tax Revenue

7.25% due 10/01/2033

50,000

51,151

United States

0.5%

Colony TX NFM Sales Tax Revenue

7.625% due 10/01/2042

50,000

57,976

United States

0.6%

211,410

2.1%

Total Municipal Bonds

$211,410

2.1%

Warrants – 0.0%

Number of Shares

Cost

Market Value

Country¹

Percentage of Assets

Energy

Exploration & Production

Goodrich Petroleum Warrants²

1,707

United States

0.0%

0.0%

Continued on next page.




34	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Global High Income Fund

Schedule of Investments

As of November 30, 2019

Total investments

(Cost = $7,620,094)

7,837,387

79.2%

Other assets (net of liabilities)

2,056,011

20.8%

Total net assets

$9,893,398

100.0%

¹	Country of domicile

²	Non-income producing

³	Amount is less than 0.05%

⁴	Variable rate security. The interest rate represents the rate in effect at November 30, 2019, and resets periodically based on the parenthetically disclosed reference rate and spread.

ADR: American Depositary Receipt


Countries			(unaudited)





Weightings shown are a percentage of total net assets.

Bond Quality Diversification

(unaudited)

% of Total Net Assets

Rated “AAA”

7.7%

∎

Rated “A-”

6.9%

∎

Rated “BBB+”

1.9%

∎

Rated “BBB”

5.8%

∎

Rated “BBB-”

8.0%

∎

Rated “BB”

7.5%

∎

Rated “BB-”

1.6%

∎

Rated “B-”

1.7%

∎

Rated “CC”

1.1%

∎

Not rated

2.1%

∎

Equity

34.9%

∎

Other assets (net of liabilities)

20.8%

∎



Credit ratings are the lesser of S&P Global Ratings or Moody’s Investors Service. If neither S&P nor Moody’s rate a particular security, that security is categorized as not rated (except for US Treasury securities and securities issued or backed by US agencies which inherit the credit rating for the US government). Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and below are lower-rated securities (junk bonds). Ratings apply to the creditworthiness of the issuers of the underlying securities and not the Fund or its shares. Ratings may be subject to change.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	35

Sextant Global High Income Fund

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $7,620,094)			$7,837,387

Cash			1,963,431

Dividends and interest receivable			100,478

Other assets			9,804

Receivable for Fund shares sold			1,351


Total assets			9,912,451


Liabilities

Accrued registration/filling fees			6,574

Accrued audit expenses			5,192

Accrued advisory fees			2,855

Accrued retirement plan custody fee			1,536

Accrued insurance expenses			655

Accrued Chief Compliance Officer expenses			628

Accrued other operating expenses			575

Accrued printing fees			539

Accrued trustee expenses			499


Total liabilities			19,053


Net assets			$9,893,398



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$8,879,360

Total distributable earnings			1,014,038


Net assets applicable to Fund shares outstanding			$9,893,398


Fund shares outstanding			866,000

Net asset value, offering and redemption price per share			$11.42

Statement of Operations


Year ended November 30, 2019



Investment income

Interest income	$247,642

Dividend income

(net of foreign tax of $23,464)	185,593


Total investment income	433,235


Expenses

Investment adviser fees	65,447

Filing and registration fees	20,439

Audit fees	8,639

Chief Compliance Officer expenses	2,876

Trustee fees	2,586

Printing and postage fees	2,337

Other expenses	1,790

Retirement plan custodial fees	1,709

Legal fees	797

Custodian fees	778


Total gross expenses	107,398


Less adviser fees waived	(33,817	)

Less custodian fee credits	(757	)


Net expenses	72,824


Net investment income	$360,411





Net realized gain from investments and foreign currency	$470,083

Net decrease in unrealized appreciation on investments and foreign currency	(183,400	)


Net gain on investments	$286,683



Net increase in net assets resulting from operations	$647,094




36	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Global High Income Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$360,411		$318,693

Net realized gain on investment	470,083		151,626

Net decrease in unrealized appreciation	(183,400	)	(267,907	)


Net increase in net assets	647,094		202,412




Distributions to shareowners	(311,447	)	(253,597	)



Capital share transactions

Proceeds from sales of shares	1,877,127		564,016

Value of shares issued in reinvestment of dividends	305,590		249,322

Cost of shares redeemed	(1,452,378	)	(1,307,655	)


Total capital share transactions	730,339		(494,317	)


Total increase (decrease) in net assets	1,065,986		(545,502	)



Net assets

Beginning of year	8,827,412		9,372,914

End of year	$9,893,398		$8,827,412



Shares of the Fund sold and redeemed

Number of shares sold	168,864		50,613

Number of shares issued in reinvestment of dividends	29,440		22,707

Number of shares redeemed	(130,029	)	(118,123	)


Net increase (decrease) in number of shares outstanding	68,275		(44,803	)


Financial Highlights	For Year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016	2015

Net asset value at beginning of year	$11.07		$11.12		$10.11		$8.89	$10.57

Income from investment operations

Net investment income	0.42		0.40		0.35		0.45	0.52

Net gains (losses) on securities (both realized and unrealized)	0.32		(0.15	)	1.11		0.77	(1.68	)


Total from investment operations	0.74		0.25		1.46		1.22	(1.16	)


Less distributions

Dividends (from net investment income)	(0.39	)	(0.30	)	(0.45	)	-	(0.52	)


Total distributions	(0.39	)	(0.30	)	(0.45	)	-	(0.52	)




Net asset value at end of year	$11.42		$11.07		$11.12		$10.11	$8.89


Total return	7.06%		2.31%		15.01%		13.72%	(11.01	)%

Ratios / supplemental data

Net assets ($000), end of year	$9,893		$8,827		$9,373		$7,570	$6,952

Ratio of expenses to average net assets

Before fee waivers	1.11%		0.97%		1.18%		1.17%	1.06%

After fee waivers	0.76%		0.75%		0.83%		0.91%	0.90%

After fee waivers and custodian fee credits	0.75%		0.75%		0.82%		0.90%	0.89%

Ratio of net investment income after fee waivers and custodian fee credits to average net assets	3.72%		3.43%		3.34%		4.78%	4.87%

Portfolio turnover rate	33%		10%		8%		26%	40%




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	37

Sextant Growth Fund

Performance Summary

(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant Growth Fund Investor Shares (SSGFX)		21.81%		9.52%		11.81%		0.92%

Sextant Growth Fund Z Shares (SGZFX)²		22.22%		n/a		n/a		0.70%

S&P 500 Index		16.11%		10.97%		13.44%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in Investor Shares of the Fund on November 30, 2009, to an identical amount invested in the S&P 500 Index, an index comprised of 500 widely held common stocks considered to be representative of the US stock market in general. The graph shows that an investment in the Investor Shares of the Fund would have risen to $30,539 versus $35,289 in the index.

²	Sextant Growth Fund Z Shares (SGZFX) began operations June 2, 2017.

Fund Objective

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


Top 10 Holdings

% of Total Net Assets

Adobe			6.3%

Microsoft			6.3%

Amazon.com			6.1%

Apple			5.9%

Mastercard, Class A			5.7%

Alphabet, Class A			4.5%

Abbott Laboratories			3.9%

Fidelity National Information Services			3.4%

Costco Wholesale			3.2%

Edwards Life sciences			3.1%

Portfolio Diversification

% of Total Net Assets

Consumer Finance

11.5%

∎

LOGO

Medical Devices

8.3%

∎

Application Software

8.3%

∎

Infrastructure Software

7.7%

∎

E-Commerce Discretionary

6.1%

∎

Communications Equipment

5.9%

∎

Home Products Stores

4.8%

∎

Internet Media

4.5%

∎

Specialty Apparel Stores

4.5%

∎

Large Pharma

3.9%

∎

Semiconductor Devices

3.9%

∎

Mass Merchants

3.2%

∎

Home Improvement

3.0%

∎

Industries < 3%

20.1%

∎

Other Assets (net of liabilities)

4.3%

∎

Sextant Growth Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

For the fiscal year ended November 30, 2019, the Sextant Growth Fund Investor Shares returned 21.81%, well ahead of the 16.11% gain for the S&P 500 Index. New class Z Shares, without a 12b-1 fee expense, were introduced in 2017 and 90.04% of the Fund now benefits from this lower expense option. The Fund also outperformed other growth-oriented funds, as illustrated by its Morningstar US Large Growth category peer group returning an average of 17.63% over the same period.

Factors Affecting Past Performance

Sextant Growth’s performance improved over the past year as many of the largest positions in the Fund experienced solid price appreciation, while significant losses were largely avoided. The Fund’s largest exposure is to Technology, and within that group Apple, Microsoft, Adobe, and Qualcomm led the charge, helped by the fact that the first three are the largest positions in the Fund. Alphabet had a good year but did not keep pace with the others, while Amazon, which was a significant contributor last year, took a breather in 2019. Going forward, each of these companies remains attractive in terms of competitive position and business, but political noise surrounding some of the largest may be an issue in 2020 as the presidential campaign heats up. Payments technology also contributed to the Fund’s strong year, with Mastercard and Fidelity National Information Services both performing admirably. With regard to the latter, it entered the Fund through its purchase of our WorldPay holding, which turned out to be one of the best investments for the year. We believe electronic payments have significant scope for further growth.

Along with Technology, Consumer Discretionary and Consumer Staples were the major contributors as Nike, TJX, Ross Stores, and Costco continued to perform well, outpacing overall Fund returns. In 2019, they were joined by equally strong performances from Starbucks, Lowe’s, and Home Depot, which had lagged the previous year. We believe all of these businesses maintain identifiable and sustainable competitive advantages, making them attractive investments going forward. Health Care provided a mixed bag, with our pharmaceutical investments in Bristol-Myers and Merck lagging overall Fund returns, while Abbott Labs and Stryker performed roughly in line. On the other hand, Edwards Life Sciences was one of the top performers for the year, as its heart valve business moved from strength to strength. The only stock failing to provide a positive return last year was Alaska Air, which registered a low single-digit decline. While airlines aren’t traditionally considered growth stocks, Alaska Air’s combination of attractive valuation, combined with rapidly growing earnings as it consolidates its acquisition of Virgin America, made it suitable.

Looking Forward

The US economy appears to have recovered from the inverted yield curve scare of the past summer with low unemployment and reasonable wage growth. We would be more comfortable if capital spending were demonstrating greater strength but that’s perhaps understandable as we enter a presidential election year that could lead to wholesale changes in policy. As was the case last year, trade policy remains an area of concern, especially as regards China. Since concern over China’s economic policies crosses the political aisle, we may indeed move toward a bi-polar world in the economic sphere. We believe much of the manufacturing trend away from China was bound to happen regardless of trade policies, due to China’s shrinking work force and increasing costs, but inefficiencies are still a likely outcome. From a sector perspective, Health Care is probably the most exposed to political risk. In some areas (drug prices), there is broad agreement between the two parties, but in terms of organization of the Health Care system, the two could hardly be further apart. We certainly aren’t going to provide any projections for market returns over the coming year but believe, as always, that staying invested for the long term remains the best strategy.

Management Fee Calculations

The Sextant Growth Fund calculates the performance part of its management fee by comparing the Fund’s return to the average return in Morningstar’s “Large Growth” category.

Sextant Growth Fund Investor Shares’ 12-month return of 21.81% was more than 2% above the Morningstar^™ category average of 17.63% at month-end November 30, 2019. Therefore, the base annual management fee of 0.50% for the Fund as a whole was increased by 0.20% to 0.70% for the month of December 2019.

Sextant Growth Fund


Schedule of Investments							As of November 30, 2019

Common Stock – 95.7%	Number of Shares		Cost		Market Value		Percentage of Assets

Communications

Internet Media

Alphabet, Class A¹		1,584		$898,428		$2,065,679		4.5%

				898,428		2,065,679		4.5%

Consumer Discretionary

Airlines

Alaska Air		7,422		129,600		512,192		1.1%

Apparel, Footwear & Accessory Design

Nike, Class B		10,276		528,776		960,703		2.1%

E-Commerce Discretionary

Amazon.com¹		1,529		278,191		2,753,423		6.1%

Home Improvement

Stanley Black & Decker		8,684		795,475		1,369,814		3.0%

Home Products Stores

Home Depot		4,000		451,717		882,040		1.9%

Lowe’s		11,200		794,834		1,313,872		2.9%



				1,246,551		2,195,912		4.8%

Other Commercial Services

Ecolab		6,243		704,507		1,165,381		2.5%

Restaurants

Starbucks		14,674		610,056		1,253,600		2.8%

Specialty Apparel Stores

Ross Stores		11,600		742,559		1,347,340		3.0%

TJX Companies		11,078		330,472		677,198		1.5%



				1,073,031		2,024,538		4.5%

				5,366,187		12,235,563		26.9%

Consumer Staples

Mass Merchants

Costco Wholesale		4,883		599,638		1,463,972		3.2%

				599,638		1,463,972		3.2%

Financials

Consumer Finance

Ally Financial		34,000		777,141		1,082,560		2.4%

Fidelity National Information Services		11,144		872,896		1,539,544		3.4%

Mastercard, Class A		8,914		806,925		2,604,938		5.7%



				2,456,962		5,227,042		11.5%

Continued on next page.




40	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Growth Fund


Schedule of Investments							As of November 30, 2019

Common Stock – 95.7%	Number of Shares		Cost		Market Value		Percentage of Assets

Financials (continued)

Diversified Banks

JP Morgan Chase		8,367		501,267		1,102,436	2.4%

				2,958,229		6,329,478	13.9%

Health Care

Large Pharma

Bristol-Myers Squibb		15,600		722,502		888,264	2.0%

Merck & Co		10,000		837,513		871,800	1.9%



				1,560,015		1,760,064	3.9%

Medical Devices

Abbott Laboratories		20,799		646,854		1,777,274	3.9%

Edwards Lifesciences¹		5,700		546,521		1,396,158	3.1%

Stryker		3,000		374,100		614,580	1.3%



				1,567,475		3,788,012	8.3%

				3,127,490		5,548,076	12.2%

Industrials

Commercial & Residential Building Equipment & Systems

Honeywell International		5,000		753,256		892,750	2.0%

Electrical Components

Sensata Technologies Holding¹		8,500		453,176		437,665	1.0%

TE Connectivity		6,000		549,196		556,260	1.2%



				1,002,372		993,925	2.2%

Measurement Instruments

Trimble¹		24,000		833,189		972,720	2.1%

				2,588,817		2,859,395	6.3%

Materials

Specialty Chemicals

RPM International		18,000		737,644		1,327,140	2.9%

				737,644		1,327,140	2.9%

Technology

Application Software

Adobe Systems¹		9,300		92,094		2,878,629	6.3%

Take-Two Interactive Software¹		7,500		797,765		910,125	2.0%



				889,859		3,788,754	8.3%

Communications Equipment

Apple		10,000		11,787		2,672,500	5.9%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	41

Sextant Growth Fund


Schedule of Investments							As of November 30, 2019

Common Stock – 95.7%	Number of Shares		Cost		Market Value		Percentage of Assets

Technology (continued)

Infrastructure Software

Microsoft		18,920		872,435		2,864,110	6.3%

Oracle		11,300		550,083		634,382	1.4%



				1,422,518		3,498,492	7.7%

Semiconductor Devices

Qualcomm		6,000		405,540		501,300	1.1%

Texas Instruments		3,600		386,981		432,756	0.9%

Xilinx		9,200		853,942		853,576	1.9%



				1,646,463		1,787,632	3.9%

				3,970,627		11,747,378	25.8%



Total investments				$20,247,060		43,576,681	95.7%

Other assets (net of liabilities)						1,933,794	4.3%

Total net assets						$45,510,475	100.0%

¹	Non-income producing security




42	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Growth Fund

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $20,247,060)			$43,576,681

Cash			1,920,206

Dividends receivable			33,968

Receivable for Fund shares sold			10,995

Other assets			16,365


Total assets			45,558,215


Liabilities

Accrued advisory fees			17,872

Accrued audit expenses			11,880

Accrued retirement plan custody fee			7,667

Accrued Chief Compliance Officer expenses			4,197

Accrued insurance expenses			2,830

Accrued other operating expenses			1,435

Accrued trustee expenses			985

Accrued 12b-1 distribution fees			874


Total liabilities			47,740


Net assets			$45,510,475



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$20,825,704

Total distributable earnings			24,684,771


Net assets applicable to Fund shares outstanding			$45,510,475



Net asset value per Investor Share			SSGFX

Net assets, at value			$4,532,567

Shares outstanding			136,325

Net asset value, offering and redemption price per share			$33.25



Net asset value per Z Share			SGZFX

Net assets, at value			$40,977,908

Shares outstanding			1,235,854

Net asset value, offering and redemption price per share			$33.16

Statement of Operations


Year ended November 30, 2019



Investment income

Dividend income	$462,531


Total investment income	462,531


Expenses

Investment adviser fees	279,840

Filing and registration fees	24,453

Audit fees	17,922

Chief Compliance Officer expenses	12,075

Other expenses	10,605

Distribution fees - Investor Shares	9,850

Legal fees	7,938

Trustee fees	7,379

Retirement plan custodial fees

Investor Shares	9

Z Shares	7,299

Printing and postage fees	4,307

Custodian fees	1,650


Total gross expenses	383,327


Less custodian fee credits	(1,566	)


Net expenses	381,761


Net investment income	$80,770





Net realized gain from investments	$1,280,957

Net increase in unrealized appreciation on investments	6,878,691


Net gain on investments	$8,159,648



Net increase in net assets resulting from operations	$8,240,418




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	43

Sextant Growth Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$80,770		$175,267

Net realized gain on investment	1,280,957		1,640,036

Net increase in unrealized appreciation	6,878,691		1,967,640


Net increase in net assets	8,240,418		3,782,943


Distributions to shareowners

Net distribution to shareholders – Investor Shares	(169,455	)	(294,960	)

Net distribution to shareholders – Z Shares	(1,652,425	)	(1,773,166	)


Total distributions	(1,821,880	)	(2,068,126	)


Capital share transactions

Proceeds from sales of shares

Investor Shares	583,085		328,352

Z Shares	1,729,858		2,305,904

Value of shares issued in reinvestment of dividends

Investor Shares	128,694		294,403

Z Shares	1,612,686		1,721,116

Cost of shares redeemed

Investor Shares	(1,779,676	)	(1,820,640	)

Z Shares	(2,410,583	)	(3,295,790	)


Total capital share transactions	(135,936	)	(466,655	)


Total increase in net assets	6,282,602		1,248,162



Net assets

Beginning of year	39,227,873		37,979,711

End of year	$45,510,475		$39,227,873



Shares of the Fund sold and redeemed

Investor Shares (SSGFX)

Number of shares sold	18,789		11,092

Number of shares issued in reinvestment of dividends and distributions	5,181		11,215

Number of shares redeemed	(63,178	)	(63,545	)


Net decrease in number of shares outstanding	(39,208	)	(41,238	)


Z Shares (SGZFX)

Number of shares sold	59,073		82,395

Number of shares issued in reinvestment of dividends and distributions	65,291		65,817

Number of shares redeemed	(81,864	)	(119,008	)


Net increase in number of shares outstanding	42,500		29,204




44	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant Growth Fund: Financial Highlights


Investor Shares (SSGFX)			For year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		2015

Net asset value at beginning of year	$28.70		$27.51		$22.52		$24.03		$26.36

Income from investment operations

Net investment income	(0.03	)^A	0.07	^A	0.15	^A	0.11		0.03

Net gains (losses) on securities (both realized and unrealized)	5.86		2.53		4.93		(0.88	)	(0.25	)


Total from investment operations	5.83		2.60		5.08		(0.77	)	(0.22	)


Less distributions

Dividends (from net investment income)	(0.04	)	(0.07	)	(0.09	)	(0.02	)	(0.04	)

Distributions (from capital gains)	(1.24	)	(1.34	)	-		(0.72	)	(2.07	)


Total distributions	(1.28	)	(1.41	)	(0.09	)	(0.74	)	(2.11	)




Net asset value at end of year	$33.25		$28.70		$27.51		$22.52		$24.03


Total return	21.81%		9.95%		22.64%		(3.22	)%	(0.87	)%

Ratios / supplemental data

Net assets ($000), end of year	$4,533		$5,037		$5,962		$34,561		$55,867

Ratio of expenses to average net assets

Before custodian fee credits	1.20%		0.92%		0.76%		0.76%		0.90%

After custodian fee credits	1.20%		0.92%		0.76%		0.76%		0.90%

Ratio of net investment income after custodian fee credits to average net assets	(0.07	)%	0.25%		0.60%		0.39%		0.13%

Portfolio turnover rate	10%		17%		18%		25%		68%

Z Shares (SGZFX)

For year ended November 30,

Period ended

Selected data per share of outstanding capital stock throughout each period:

2019

2018

November 30, 2017

Net asset value at beginning of period

$28.65

$27.50

$25.54

Income from investment operations

Net investment income

0.08

0.13

0.16

Net gains on securities (both realized & unrealized)

5.82

2.53

1.82

Total from investment operations

5.90

2.66

1.98

Less distributions

Dividends (from net investment income)

(0.15

)

(0.17

)

(0.02

)

Distributions (from capital gains)

(1.24

)

(1.34

)

Total distributions

(1.39

)

(1.51

)

(0.02

)

Net asset value at end of period

$33.16

$28.65

$27.50

Total return

22.22%

10.20%

7.73%

Ratios / supplemental data

Net assets ($000), end of period

$40,978

$34,191

$32,017

Ratio of expenses to average net assets

Before custodian fee credits

0.90%

0.70%

0.51%

After custodian fee credits

0.90%

0.70%

0.51%

Ratio of net investment income after custodian fee credits to average net assets

0.23%

0.47%

0.89%

Portfolio turnover rate

10%

17%

18%

^A	Calculated using average shares outstanding

^B	Operations commenced on June 2, 2017

^C	Not annualized

^D	Annualized




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	45

Sextant International Fund


*Performance Summary*				(unaudited)


Average Annual Total Returns as of November 30, 2019

	1 Year		5 Year		10 Year		Expense Ratio¹

Sextant International Fund Investor Shares (SSIFX)		18.82%		7.74%		5.77%		1.05%

Sextant International Fund Z Shares (SIFZX)²		19.14%		n/a		n/a		0.84%

MSCI EAFE Index		13.04%		4.76%		5.81%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is unmanaged, and expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in Investor Shares of the Fund on November 30, 2009, to an identical amount invested in the MSCI EAFE Index, an international index focused on Europe, Australasia, and the Far East. The graph shows that an investment in Investor Shares of the Fund would have risen to $17,530 versus $17,586 in the Index.

Past performance does not guarantee future results. The “Growth of $10,000” graph and “Average Annual Returns” performance table assume the reinvestment of dividends and capital gains. They do not reflect the deduction of taxes that a shareowner might pay on fund distributions or the redemption of fund shares.

²	Sextant International Fund Z Shares (SIFZX) began operations June 2, 2017.

Fund Objective

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


Top 10 Holdings

% of Total Net Assets

Wolters Kluwer			7.3%

NICE Systems ADR			6.2%

MercadoLibre			5.9%

ASML Holding			5.5%

Dassault Systemes ADR			5.5%

Copa Holdings, Class A			3.2%

Novartis ADR			3.1%

BASF ADR			3.0%

Unilever ADR			3.0%

Toronto-Dominion Bank			2.9%

Portfolio Diversification

% of Total Net Assets

Application Software

15.6%

∎

LOGO

Information Services

7.3%

∎

Airlines

6.3%

∎

Large Pharma

6.0%

∎

E-Commerce Discretionary

5.9%

∎

Semiconductor Manufacturing

5.5%

∎

Banks

4.8%

∎

Telecom Carriers

4.4%

∎

Beverages

3.5%

∎

Household Products

3.0%

∎

Basic & Diversified Chemicals

3.0%

∎

Industries < 3%

21.7%

∎

Other assets (net of liabilities)

13.0%

∎

Sextant International Fund


*Discussion of Fund Performance*		(unaudited)

(photo omitted)

Fiscal Year 2019

For the fiscal year ended November 30, 2019, the Sextant International Fund Investor Shares returned 18.82%, while the Fund’s benchmark, the MSCI EAFE Index, returned 13.04%. Class Z Shares benefit from lower expenses without a 12b-1 fee, and now comprise 31.5% of the Fund.

The Investor Shares paid income dividends of 11¢ per share. The new Z Shares paid an income dividend of 15¢ per share. Total Fund assets increased by 19.62% in fiscal 2019.

Reflecting the lower expense structure (the Fund’s class Z Shares’ do not charge a 12b-1 fee) the effective annualized expense ratio of the Z shares was 0.84% compared to 1.06% for the Investor class shares.

Factors Affecting Past Performance

After outperforming its benchmark dramatically in 2018, the Sextant International Fund continued its strong run, returning 18.76% during the fiscal year, while the benchmark MSCI EAFE Index gained 13.04% in US dollar terms. The Technology and Consumer Discretionary sectors provided the largest returns during the year. Technology returns were spread among a variety of companies, but were led by ASML, a Dutch company that dominates the global lithography market. We visited ASML management and toured the facilities at the start of the financial year and came away convinced that the firm’s stranglehold on the market for chip-making equipment would only strengthen in the years to come. Within the Technology sector, France’s Dassault Systemes focuses on 3D modeling and simulation applications, while Israel’s Nice Ltd offers a variety of financial compliance products. Both performed well during the year. Consumer Discretionary returns were dominated by South American e-commerce leader MercadoLibre. MercadoLibre has been a tremendous investment for the Fund, more that sextupling since the start of 2016. While e-commerce supplied the initial boost, the firm’s move into electronic payments provided escape velocity. Based in Argentina, MercadoLibre offers e-commerce solutions throughout Latin America. The Fund received additional Consumer Discretionary returns from LVMH’s purchase of hotel operator Belmond, which closed in January of last year.

Among our Industrials holdings, airlines were a solid source of Fund returns, with Panama’s Copa and Air Canada both enjoying a steady rate of climb throughout the year. Wolters Kluwer, the Dutch provider of electronic media and information services, experienced another strong year as the company moves from the print to electronic transition phase, to developing new and more profitable streams of business.

Health Care performance was muted during the year, although Switzerland’s Novartis and Danish diabetes care leader Novo Nordisk both made positive contributions to Fund returns. With Health Care certain to be a major topic of discussion during the presidential election year, performance may again be lackluster, although both companies provide good downside protection and attractive dividends.

A key aspect of providing positive returns is avoiding significant losses, which was the case during the financial year. Not every investment made a positive contribution but those that did decline only detracted minimally from returns and there was no unifying theme.

Sextant International started the year with a concentrated portfolio of 26 securities. Due to the strong performance in fiscal year 2018, the Fund experienced significant asset inflows. We have taken advantage of this development to reduce concentration by adding several new investments and there are now 36 positions in the Fund. New investments include Adidas, which has been raising its game the past few years, leading consultant Accenture, Japanese airline ANA, Spanish renewable power leader Iberdrola, and French wine and liquor leader Pernod Ricard, among others.

Looking Forward

There has been speculation that 2020 could be a year of relative US dollar weakness, an obvious tailwind for international investing. Exchange rates are notoriously hard to predict, and we have difficulty identifying catalysts leading to a strengthening of overseas currencies when debt and demographic challenges are often greater than our own. Regardless, the discussion illuminates the benefits of diversifying portfolios through an allocation to international securities. International markets, Europe and Japan broadly speaking, also trade at attractive valuations relative to the United States, not only in absolute terms but also relative to their historical relationship with US equities. Of course, Europe must wrestle with the fallout from the UK’s departure from the European Union now that Prime Minster Boris Johnson and the UK Parliament have finalized Brexit. Japan faces a daunting challenge with its shrinking population, but reforms promoted by Prime Minister Abe appear to be gaining traction.

Management Fee Calculations

The Sextant International Fund calculates the performance part of its management fee by comparing the Fund’s return to the average return of Morningstar’s^TM “Foreign Large Blend” category.

Sextant International Fund Investor Shares’ 12-month return of 18.76% was more than 2% above the MorningstarTM category average of 16.71% at month-end November 30, 2019. Therefore, the basic annual management fee of 0.50% was increased by 0.20% to 0.70% for the Fund as a whole for the month of December 2019.

Sextant International Fund


Schedule of Investments								As of November 30, 2019

Common Stocks – 87.0%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Communications

Telecom Carriers

BCE		50,000		$1,164,294		$2,403,500	Canada		2.5%

Telus		50,000		710,476		1,887,500	Canada		1.9%

				1,874,770		4,291,000			4.4%

Consumer Discretionary

Airlines

Air Canada²		60,000		1,442,774		2,252,616	Canada		2.3%

ANA Holdings		25,000		843,274		851,077	Japan		0.8%

Copa Holdings, Class A		30,000		1,766,222		3,127,800	Panama		3.2%



				4,052,270		6,231,493			6.3%

Apparel, Footwear & Accessory Design

Adidas		6,000		1,743,151		1,872,140	Germany		1.9%

Automobiles

Subaru ADR		50,000		653,742		654,825	Japan		0.7%

Toyota Motor ADR		10,000		748,148		1,402,100	Japan		1.4%



				1,401,890		2,056,925			2.1%

E-Commerce Discretionary

MercadoLibre		10,000		829,340		5,805,800	Argentina		5.9%

Specialty Apparel Stores

Industria de Diseno Textil		60,000		1,985,609		1,868,224	Spain		1.9%

				10,012,260		17,834,582			18.1%

Consumer Staples

Beverages

Fomento Economico Mex ADR		30,000		1,614,722		2,727,900	Mexico		2.8%

Pernod Ricard ADR		20,000		709,440		735,600	France		0.7%



				2,324,162		3,463,500			3.5%

Household Products

Unilever ADR		50,000		1,315,509		2,974,500	United Kingdom		3.0%

				3,639,671		6,438,000			6.5%

Energy

Integrated Oils

Total ADR		39,100		2,112,969		2,054,314	France		2.1%

				2,112,969		2,054,314			2.1%

Financials

Banks

Australia & New Zealand Banking ADR		80,000		1,581,456		1,344,000	Australia		1.4%

Commerzbank ADR		80,000		458,347		461,600	Germany		0.5%

Toronto-Dominion Bank		50,000		1,250,872		2,890,000	Canada		2.9%



				3,290,675		4,695,600			4.8%

Continued on next page.




48	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant International Fund


Schedule of Investments								As of November 30, 2019

Common Stocks –87.0%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Financials (continued)

Diversified Banks

Mitsubishi UFJ Financial Group ADR		350,000		1,694,977		1,858,500	Japan		1.9%

				4,985,652		6,554,100			6.7%

Health Care

Health Care Supply Chain

Sinopharm Group		250,000		798,791		825,735	China		0.8%

Large Pharma

Novartis ADR		33,000		1,488,815		3,045,900	Switzerland		3.1%

Novo Nordisk ADR		50,000		612,798		2,807,500	Denmark		2.9%



				2,101,613		5,853,400			6.0%

Medical Equipment

Alcon²		15,000		708,000		829,350	Switzerland		0.9%

Koninklijke Philips		32,000		1,234,087		1,487,360	Netherlands		1.5%



				1,942,087		2,316,710			2.4%

				4,842,491		8,995,845			9.2%

Industrials

Marine Shipping

Frontline²		60,000		675,330		673,800	Norway		0.7%

				675,330		673,800			0.7%

Materials

Agricultural Chemicals

Nutrien		25,000		1,426,939		1,185,500	Canada		1.2%

Basic & Diversified Chemicals

BASF ADR		160,000		2,888,666		2,993,600	Germany		3.0%

Steel Raw Material Suppliers

Rio Tinto ADR		35,000		1,890,443		1,909,600	United Kingdom		2.0%

				6,206,048		6,088,700			6.2%

Technology

Application Software

Dassault Systemes ADR		34,153		1,224,632		5,398,223	France		5.5%

NICE Systems ADR		40,000		1,468,919		6,059,600	Israel		6.2%

Open Text US		50,000		2,072,526		2,179,000	Canada		2.2%

SAP ADR		12,850		1,654,051		1,746,958	Germany		1.7%



				6,420,128		15,383,781			15.6%

Consumer Electronics

Sony ADR		17,000		991,087		1,079,160	Japan		1.1%

Information Services

Wolters Kluwer		100,000		1,869,506		7,187,436	Netherlands		7.3%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	49

Sextant International Fund

Schedule of Investments

As of November 30, 2019

Common Stocks – 87.0%

Number of Shares

Cost

Market Value

Country¹

Percentage of Assets

Technology (continued)

IT Services

Accenture, Class A

9,250

1,709,475

1,860,730

Ireland

1.9%

Semiconductor Manufacturing

ASML

20,000

697,516

5,412,400

Netherlands

5.5%

11,687,712

30,923,507

31.4%

Utilities

Power Generation

Iberdrola

173,953

1,743,884

1,712,541

Spain

1.7%

1,743,884

1,712,541

1.7%

Total investments

$47,780,787

85,566,389

87.0%

Other assets (net of liabilities)

12,786,597

13.0%

Total net assets

$98,352,986

100.0%

¹	Country of domicile

²	Non-income producing security

ADR: American Depositary Receipt


Countries			(unaudited)





Weightings shown are a percentage of total net assets.




50	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant International Fund


Statement of Assets and Liabilities
As of November 30, 2019



Assets

Investments in securities, at value (Cost $47,780,787)			$85,566,389

Cash			14,230,455

Recoverable tax receivable			175,179

Dividends and interest receivable			148,216

Other assets			23,264

Receivable for Fund shares sold			5,399


Total assets			100,148,902


Liabilities

Payable for Fund shares redeemed			1,700,307

Accrued advisory fees			46,230

Accrued audit expenses			19,525

Accrued 12b-1 distribution fees			16,214

Accrued retirement plan custody fee			5,872

Accrued Chief Compliance Officer expenses			3,446

Accrued other operating expenses			3,270

Accrued trustee expenses			1,052


Total liabilities			1,795,916


Net assets			$98,352,986



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$57,174,226

Total distributable earnings			41,178,760


Net assets applicable to Fund shares outstanding			$98,352,986



Net asset value per Investor Share			SSIFX

Net assets, at value			$67,389,868

Shares outstanding			3,643,572


Net asset value, offering and redemption price per share			$18.50



Net asset value per Z Share			SIFZX

Net assets, at value			$30,963,118

Shares outstanding			1,669,593


Net asset value, offering and redemption price per share			$18.55

Statement of Operations


Year ended November 30, 2019



Investment income

Dividend income (net of foreign tax $226,021)	$1,459,678


Total investment income	1,459,678


Expenses

Investment adviser fees	565,056

Distribution fees - Investor Shares	148,607

Audit fees	34,751

Filing and registration fees	25,940

Chief Compliance Officer expenses	17,087

Other operating expenses	16,571

Trustee fees	14,644

Legal fees	13,216

Printing and postage fees	11,102

Custodian fees	6,211

Retirement plan custodial fees

Investor Shares	9

Z Shares	4,200


Total gross expenses	857,394


Less custodian fee credits	(6,067	)


Net expenses	851,327


Net investment income	$608,351





Net realized gain from investments and foreign currency	$2,790,326

Net increase in unrealized appreciation on investments and foreign currency	9,915,749


Net gain on investments	$12,706,075



Net increase in net assets resulting from operations	$13,314,426




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	51

Sextant International Fund


Statements of Changes in Net Assets	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$608,351		$623,611

Net realized gain on investment	2,790,326		3,896,894

Net increase (decrease) in unrealized appreciation	9,915,749		(3,361,106	)


Net increase in net assets	13,314,426		1,159,399


Distributions to shareowners

Net distribution to shareholders - Investor Shares	(2,929,551	)	(3,595,584	)

Net distribution to shareholders - Z Shares	(1,596,893	)	(1,678,906	)


Total distributions	(4,526,444	)	(5,274,490	)


Capital share transactions

Proceeds from sales of shares

Investor Shares	44,612,650		4,219,098

Z Shares	9,895,572		1,332,045

Value of shares issued in reinvestment of dividends

Investor Shares	2,886,627		3,545,645

Z Shares	1,555,608		1,619,175

Cost of shares redeemed

Investor Shares	(27,878,254	)	(9,575,271	)

Z Shares	(3,886,967	)	(1,998,163	)


Total capital share transactions	27,185,236		(857,471	)


Total increase (decrease) in net assets	35,973,218		(4,972,562	)



Net assets

Beginning of year	62,379,768		67,352,330

End of year	$98,352,986		$62,379,768



Shares of the Fund sold and redeemed

Investor Shares (SSIFX)

Number of shares sold	2,532,126		247,089

Number of shares issued in reinvestment of dividends and distributions	195,174		211,176

Number of shares redeemed	(1,561,321	)	(556,311	)


Net increase (decrease) in number of shares outstanding	1,165,979		(98,046	)


Z Shares (SIFZX)

Number of shares sold	568,002		77,828

Number of shares issued in reinvestment of dividends and distributions	105,108		96,380

Number of shares redeemed	(229,953	)	(115,999	)


Net increase in number of shares outstanding	443,157		58,209




52	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Sextant International Fund: Financial Highlights


Investor Shares (SSIFX)			For year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		2015

Net asset value at beginning of year	$16.83		$17.98		$14.37		$14.35		$15.47

Income from investment operations

Net investment income	0.12	^A	0.15	^A	0.16	^A	0.22		0.25

Net gains (losses) on securities (both realized and unrealized)	2.74		0.14		3.65		(0.15	)	(1.11	)


Total from investment operations	2.86		0.29		3.81		0.07		(0.86	)


Less distributions

Dividends (from net investment income)	(0.15	)	(0.17	)	(0.20	)	(0.05	)	(0.25	)

Distributions (from capital gains)	(1.04	)	(1.27	)

Distributions (from return of capital)	-		-		-		-		(0.01	)


Total distributions	(1.19	)	(1.44	)	(0.20	)	(0.05	)	(0.26	)


Net asset value at end of year	$18.50		$16.83		$17.98		$14.37		$14.35


Total return	18.82%		1.63%		26.76%		0.49%		(5.58	)%

Ratios / supplemental data

Net assets ($000), end of year	$67,390		$41,688		$46,321		$62,412		$78,296

Ratio of expenses to average net assets

Before custodian fee credits	1.07%		1.05%		1.04%		1.00%		1.05%

After custodian fee credits	1.06%		1.04%		1.04%		1.00%		1.04%

Ratio of net investment income after custodian fee credits to average net assets	0.62%		0.89%		1.00%		1.36%		1.49%

Portfolio turnover rate	6%		2%		2%		0%		0%


Z Shares (SIFZX)	For year ended November 30,				Period ended

Selected data per share of outstanding capital stock throughout each period:	2019		2018		November 30, 2017	^B

Net asset value at beginning of period	$16.87		$18.00		$16.55

Income from investment operations

Net investment income	0.19	^A	0.19	^A	0.13	^A

Net gains on securities (both realized & unrealized)	2.72		0.14		1.41


Total from investment operations	2.91		0.33		1.54


Less distributions

Dividends (from net investment income)	(0.19	)	(0.19	)	(0.09	)

Distributions (from capital gains)	(1.04	)	(1.27	)	-


Total distributions	(1.23	)	(1.46	)	(0.09	)




Net asset value at end of period	$18.55		$16.87		$18.00


Total return	19.14%		1.83%		9.32%	^C

Ratios / supplemental data

Net assets ($000), end of period	$30,963		$20,692		$21,031

Ratio of expenses to average net assets

Before custodian fee credits	0.85%		0.84%		0.79%	^D

After custodian fee credits	0.84%		0.82%		0.78%	^D

Ratio of net investment income after custodian fee credits to average net assets	0.91%		1.13%		0.53%	^D

Portfolio turnover rate	6%		2%		2%	^C

^A	Calculated using average shares outstanding

^B	Operations commenced on June 2, 2017

^C	Not annualized

^D	Annualized




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	53


Notes To Financial Statements

NOTE 1 – Organization

Saturna Investment Trust (the “Trust”) was established under Washington State Law as a business trust on February 20, 1987. The Trust is registered as an open-end, diversified management company under the Investment Company Act of 1940, as amended. Nine portfolio series have been created to date: Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund (each, a “Fund”, and collectively, the “Funds”), Idaho Tax-Exempt Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund. Idaho Tax-Exempt Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund are offered through separate prospectuses, the results of which are contained in separate reports.

Sextant Growth Investor Shares (previously known as Idaho Limited Maturity Tax-Exempt Fund until October 12, 1990, then Northwest Growth Fund until September 28, 1995, when the investment objective of only Northwest stocks was changed) commenced operations as an equity fund on December 30, 1990. Sextant Growth Fund Z Shares began operations June 2, 2017. Sextant International Investor Shares began operations September 28, 1995 and Sextant International Fund Z Shares began operations on June 2, 2017. Sextant Short-Term Bond began operations September 28, 1995. Sextant Bond Income Fund (previously known as Washington Tax-Exempt Fund until September 28, 1995, when the investment objective of only Washington State Municipal Bonds was changed) began operations on March 1, 1993. Sextant Core Fund commenced operations March 30, 2007. Sextant Global High Income Fund commenced operations March 30, 2012.

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

Each class of shares of a Fund represents an interest in the same portfolio of investments of the Fund and has in all respects the same rights and obligations as each other class of the Fund, except that each class bears its own class expenses, and each class has exclusive voting rights. Each class of shares may be subject to different investment minimums and other conditions of eligibility as may be described in the prospectus for the particular class of shares, as from time to time in effect.

Income, realized and unrealized capital gains and losses, and expenses to be paid by a Fund and not allocated to a particular class as provided below, shall be allocated to each class on the basis of relative net assets. Expenses allocable to a specific class are expenses specifically incurred by or for such class including the following:

•

Distribution fees;

•

Retirement plan custodial fees; and

•

Any applicable service fees.

Net investment income dividends and capital gain distributions paid by the Fund on each class of its shares will be calculated in the same manner on the same day and at the same time.

Investment risks:

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

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

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

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

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

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

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

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

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

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


Notes To Financial Statements (continued)

NOTE 2 – Significant Accounting Policies

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

Security valuation:

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

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

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

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

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

Foreign currency:

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

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

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

Share valuation:

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

Fair value measurements:

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

Level 1 —

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

Level 2 —

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

Level 3 —

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

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

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

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


Notes To Financial Statements (continued)

The following is a summary of the inputs used as of November 30, 2019, in valuing the Funds’ investments carried at value:



Funds	Level 1		Level 2		Level 3		Total

Short-Term Bond

Corporate Bonds¹		$-		$8,155,556		$-		$8,155,556

Government Bonds¹		-		2,592,732		-		2,592,732

Total		$-		$10,748,288		$-		$10,748,288



Bond Income

Corporate Bonds¹		$-		$7,507,155		$-		$7,507,155

Government Bonds¹		-		3,056,748		-		3,056,748

Municipal Bonds¹		-		1,320,356		-		$1,320,356

Total		$-		$11,884,259		$-		$11,884,259



Core

Common Stocks¹		$10,097,451		$-		$-		$10,097,451

Corporate Bonds¹		-		3,189,705		-		3,189,705

Government Bonds¹		-		2,052,523		-		2,052,523

Municipal Bonds¹		-		440,824		-		440,824

Total		$10,097,451		$5,683,052		$-		$15,780,503



Global High Income

Common Stocks

Communications		$690,630		$-		$-		$690,630

Consumer Discretionary		178,126		-		-		178,126

Energy		802,180		-		-		802,180

Financials		496,380		171,505		-		667,885

Health Care		402,770		-		-		402,770

Industrials		-		156,915		-		156,915

Materials		379,210		-		-		379,210

Technology		176,040		-		-		176,040

Total Common Stocks		3,125,336		328,420		-		3,453,756

Corporate Bonds¹		-		2,393,271		-		2,393,271

Government Bonds¹		-		1,778,950		-		1,778,950

Municipal Bonds¹		-		211,410		-		211,410

Warrants¹		-		-		-		-

Total		$3,125,336		$4,712,051		$-		$7,837,387



Growth

Common Stocks¹		$43,576,681		$-		$-		$43,576,681

Total		$43,576,681		$-		$-		$43,576,681



International

Common Stocks

Communications		$4,291,000		$-		$-		$4,291,000

Consumer Discretionary		10,990,525		6,844,057		-		17,834,582

Consumer Staples		6,438,000		-		-		6,438,000

Energy		2,054,314		-		-		2,054,314

Financials		6,554,100		-		-		6,554,100

Health Care		8,170,110		825,735		-		8,995,845

Industrials		673,800		-		-		673,800

Materials		6,088,700		-		-		6,088,700

Technology		23,736,071		7,187,436		-		30,923,507

Utilities		-		1,712,541		-		1,712,541

Total		$68,996,620		$16,569,769		$-		$85,566,389

During the period ended November 30, 2019, no Fund had transfers between Level 1, Level 2, or Level 3.

¹	See Schedule of Investments for industry breakout.


Notes To Financial Statements (continued)

Investment concentration:

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

Federal income taxes:

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

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2016 – 2018) or expected to be taken in the Funds’ 2019 tax returns. The Funds identify their major tax jurisdictions as US federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Reclassification of capital accounts:

Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. As of November 30, 2019, there were no reclassification of capital accounts.

Distributions to shareowners:

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

Use of estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Foreign taxes:

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

Other:

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

Recent accounting pronouncements:

In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.


Notes To Financial Statements (continued)

NOTE 3 – Transactions with Affiliated Persons

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

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

•

For each month in which the Fund’s total investment return (change in net asset value plus all distributions reinvested) for the one year period through that month outperforms or underperforms the total return of a specified index for that period by 1% or more but less than 2%, the Base Fee is increased or decreased by the annual rate of .10% of the Fund’s average daily net assets for the preceding year.

•

If the outperformance or underperformance is 2% or more, then the adjustment is at the annual rate of .20%.

For the period ended November 30, 2019, due to the performance adjustment the Advisory Fee amounts charged or reduced in addition to the Base Fee were as follows:



	Base Fees		Performance Fee			Adviser Fee

Short-Term Bond		$53,500		$-			$53,500

Bond Income		56,481		(7,493	)		48,988

Core		73,388		17,982			91,370

Global High Income		48,299		17,148			65,447

Growth		203,281		76,559			279,840

International		$428,273		$136,783			$565,056

The adviser has voluntarily undertaken to limit expenses through March 31, 2020 of Sextant Short-Term Bond Fund to 0.60%, Sextant Bond Income Fund to 0.65%, and Sextant Global High Income to 0.75%. For the year ended November 30, 2019, the advisory fees incurred were as follows:



	Adviser Fees		Adviser Fees Waived			Expense Reimbursement

Short-Term Bond		$53,500		$(28,421	)		$-

Bond Income		48,988		(17,370	)		-

Core		91,370		-			-

Global High Income		65,447		(33,817	)		-

Growth		279,840		-			-

International		$565,056		$-			$-

In accordance with the expense limitation noted above, for the year ended November 30, 2019, Saturna Capital waived a portion of the advisory fees of the Sextant Short-Term Bond Fund, Sextant Bond Income Fund, and Sextant Global High Income Fund. The adviser cannot recoup previously waived fees.

Saturna Brokerage Services, Inc. (“SBS”), a discount brokerage and subsidiary of Saturna Capital Corporation, is registered as a broker-dealer and acts as distributor. On October 3, 2006, The Funds adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act. The plan provides that the Funds will pay a fee to SBS at an annual rate of 0.25% of the average net assets of the Funds. On June 2, 2017, 12b-1 fees were terminated for all Funds except Sextant Growth Investor Shares and Sextant International Investor Shares. During the fiscal year ended November 30, 2019, the Trust paid SBS the following amounts:



Distribution (12b-1) Fees

Short-Term Bond			n/a

Bond Income			n/a

Core			n/a

Global High Income			n/a

Growth Investor Shares (SSGFX)			$9,850

Growth Z Shares (SGZFX)			n/a

International Investor Shares (SSIFX)			$148,607

International Z Shares (SIFZX)			n/a

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

Saturna Trust Company (“STC”), a subsidiary of Saturna Capital, acts as retirement plan custodian for Fund shareowners. Each Fund pays an annual fee of $10 per account for retirement plan services to Saturna Trust Company. For the year ended November 30, 2019, the Funds incurred the following amounts:



Retirement plan custodial fees

Short-Term Bond			$3,477

Bond Income			2,753

Core			3,068

Global High Income			1,709

Growth Investor Shares (SSGFX)			9

Growth Z Shares (SGZFX)			7,299

International Investor Shares (SSIFX)			9

International Z Shares (SIFZX)			$4,200

Mrs. Jane Carten serves as a trustee and president of the Trust. She is also a director and president of Saturna Capital and vice president of Saturna Trust Company. Mrs. Carten is not compensated by the Trust. For the year ended November 30, 2019, the Trust incurred compensation expenses of $31,500 which is included in $44,545 of total expenses for the independent Trustees. The Sextant Funds incurred $32,560 of these total expenses.

The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who may be partially compensated by the Trust. For the year ended November 30, 2019, the Funds paid the following compensation expenses for the Chief Compliance Officer:



Chief Compliance Officer

Short-Term Bond			$2,591

Bond Income			2,513

Core			3,801

Global High Income			2,876

Growth			12,075

International			$17,087

On November 30, 2019, the trustees, officers, and their affiliates as a group owned 34.51%, 26.91%, 37.67%, 56.31%, 0.16%, 18.95%, 0.00%, and 19.95% of the outstanding shares of Short-Term Bond Fund, Bond Income Fund, Core Fund, Global High Income Fund, Growth Fund Investor Shares, Growth Fund Z Shares, International Fund Investor Shares, and International Fund Z Shares, respectively.


Notes To Financial Statements (continued)

NOTE 4 – Distributions to Shareowners

The tax characteristics of distributions paid during the fiscal years ended November 30, 2019, and 2018, were as follows:



	Year ended Nov. 30, 2019		Year ended Nov. 30, 2018

Short-Term Bond Fund

Ordinary income		$187,268		$145,570

Long-term capital gain¹		-		4,622

Bond Income Fund

Ordinary income		334,236		309,851

Core Fund

Ordinary income		179,880		166,943

Global High Income Fund

Ordinary income		311,447		253,597

Growth Fund

Ordinary income		181,466		290,653

Long-term capital gain¹		1,640,414		1,777,473

International Fund

Ordinary income		627,004		643,299

Long-term capital gain¹		$3,899,440		$4,631,191

¹	Long-Term Capital Gain dividend designated at 20% rate pursuant to Section 852(b)(3) of the Internal Revenue Code.

NOTE 5 – Federal Income Taxes

The cost basis of investments for federal income tax purposes at November 30, 2019 was as follows:



	Short-Term Bond			Bond Income

Cost of investments		$10,648,234			$11,132,690


Gross tax unrealized appreciation		118,583			756,679

Gross tax unrealized depreciation		(18,529	)		(5,110	)


Net tax unrealized appreciation (depreciation)		$100,054			$751,569



	Core			Global High Income

Cost of investments		$13,098,929			$7,620,094


Gross tax unrealized appreciation		2,707,878			596,509

Gross tax unrealized depreciation		(26,304	)		(379,216	)


Net tax unrealized appreciation		$2,681,574			$217,293



	Growth			International

Cost of investments		$20,247,060			$47,780,787


Gross tax unrealized appreciation		23,345,498			$38,473,411

Gross tax unrealized depreciation		(15,877	)		$(687,809	)


Net tax unrealized appreciation		$23,329,621			$37,785,602

As of November 30, 2019, components of distributable earnings on a tax basis were as follows:



Short-Term Bond

Undistributed ordinary income	$3,405

Accumulated capital losses	$(10,266	)


Tax accumulated earnings	$(6,861	)

Unrealized appreciation	$100,054


Total accumulated earnings	$93,193



Bond Income

Undistributed ordinary income	$803

Accumulated capital losses	$(4,337	)


Tax accumulated earnings	$(3,534	)

Unrealized appreciation	$751,569


Total accumulated earnings	$748,035



Core

Undistributed ordinary income	$236,097

Accumulated capital gains	$732,001


Tax accumulated earnings	$968,098

Unrealized appreciation	$2,681,574

Other unrealized losses	17


Total accumulated earnings	3,649,689



Global High Income

Undistributed ordinary income	$549,529

Accumulated capital gains	248,567


Tax accumulated earnings	798,096

Unrealized appreciation	217,293

Other unrealized losses	(1,351	)


Total accumulated earnings	1,014,038



Growth

Undistributed ordinary income	$74,571

Accumulated capital gains	1,280,579


Tax accumulated earnings	1,355,150

Unrealized appreciation	23,329,621


Total accumulated earnings	24,684,771



International

Undistributed ordinary income	$606,809

Accumulated capital gains	2,785,842


Tax accumulated earnings	3,392,651

Unrealized appreciation	37,787,402

Other unrealized losses	(1,293	)


Total accumulated earnings	41,178,760


Notes To Financial Statements (continued)

As of November 30, 2019, the Funds had capital loss carryforwards as follows, subject to regulation.



	Carryforward	Expiration

Short-Term Bond

Long-term loss carryforward	$10,266	Unlimited

	$10,266



Bond Income

Long-term loss carryforward	$4,337	Unlimited

	$4,337

NOTE 6 – Investments

Investment transactions other than short-term investments for the fiscal year ended November 30, 2019, were as follows:



	Purchases		Sales

Short-Term Bond		$3,845,586		$3,250,630

Bond Income		2,731,392		2,296,094

Core		5,599,753		3,848,213

Global High Income		7,299,110		2,950,041

Growth		3,862,295		6,661,699

International		$18,356,090		$4,245,000

NOTE 7 – Custodian

Under agreements in place with the Trust’s custodian, UMB Bank, custody fees are reduced by credits for cash balances. Such reductions for the fiscal year ended November 30, 2019, were as follows:



Custodian Fee Credits

Short-Term Bond			$407

Bond Income			429

Core			560

Global High Income			757

Growth			1,566

International			$6,067

NOTE 8 – Subsequent Events

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

The Funds declared the payment of a distribution to be paid on December 19, 2019, to all shareowners of record on December 18, 2019, as follows:



	Dividend Income		Short-Term Capital Gain		Long-Term Capital Gain

Short-Term Bond		$-		$-		$-

Bond Income		-		-		-

Core		0.19230		0.04110		0.57640

Global High Income		0.20840		0.22900		0.28640

Growth (Investor Shares)		0.01100		-		0.93110

Growth (Z Shares)		0.05900		-		0.93110

International (Investor Shares)		0.10550		-		0.54730

International (Z Shares)		$0.14830		$-		$0.54730

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


Report of Independent Registered Public Accounting Firm

To the Board of Trustees of

Saturna Investment Trust

and the Shareholders of Sextant Mutual Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of the Sextant Short Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund and Sextant International Fund (the “Funds”), each a series of Saturna Investment Trust, including the schedules of investments, as of November 30, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of November 30, 2019, the results of their operations for the year then ended, 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.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 1997.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2019 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

Philadelphia, Pennsylvania

January 29, 2020

/s/ Tait, Weller & Baker LLP

Tait, Weller & Baker LLP


Expenses		(unaudited)

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

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

Examples

The following example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2019, to November 30, 2019).

Actual Expenses

The first line for each Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. The Funds may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

Hypothetical Example For Comparison Purposes

The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending balance or expenses you paid for the period. You may use this information to compare ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as charges for extra services like bank wires.

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



	Beginning Account Value (June 1, 2019)		Ending Account Value (November 30, 2019)		Expenses Paid During Period¹		Annualized Expense Ratio

Short-Term Bond Fund		$1,000		$1,016.80		$3.03		0.60%

Hypothetical (5% return before expenses)		1,000		1,022.06		$3.04		0.60%

Bond Income Fund		1,000		1,049.70		2.41		0.47%

Hypothetical (5% return before expenses)		1,000		1,022.72		2.38		0.47%

Core Fund		1,000		1,095.70		4.90		0.93%

Hypothetical (5% return before expenses)		1,000		1,020.40		4.72		0.93%

Global High Income Fund		1,000		1,040.10		3.84		0.75%

Hypothetical (5% return before expenses)		1,000		1,021.31		3.80		0.75%

Growth Fund Investor Shares		1,000		1,171.60		6.61		1.21%

Hypothetical (5% return before expenses)		1,000		1,018.98		6.15		1.21%

Growth Fund Z Shares		1,000		1,173.40		5.15		0.94%

Hypothetical (5% return before expenses)		1,000		1,020.33		4.78		0.94%

International Fund Investor Shares		1,000		1,064.50		5.30		1.02%

Hypothetical (5% return before expenses)		1,000		1,019.93		5.19		1.02%

International Fund Z Shares		1,000		1,066.10		4.23		0.82%

Hypothetical (5% return before expenses)		$1,000		$1,020.97		$4.14		0.82%

¹	Expenses are equal to the annualized expense ratio indicated above (based on the most recent semi-annual period of June 1, 2019, through November 30, 2019), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).


Trustees and Officers		(unaudited)



Name, Address, and Age		Position(s) Held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Independent Trustees

(photo omitted)	Marina E. Adshade (52) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Professor of Economics, University of British Columbia, Vancouver and Simon Fraser University; Author	None

(photo omitted)	Ronald H. Fielding, MA, MBA, CFA (70) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2009); Thirteen	Director, ICI Mutual Insurance Company	Amana Mutual Funds Trust

(photo omitted)	Gary A. Goldfogel, MD (61) 1300 N. State Street Bellingham WA 98225	Chairman (since 2017); Independent Trustee (since 1995); Nine	Medical Examiner (pathologist) Owner, Avocet Environmental Testing (laboratory)	None

(photo omitted)	Jim V. McKinney (58) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Executive Director, Common Threads Northwest; President/CEO, Apple Mountain LLC, consulting and development; US Army Foreign Area Officer—Political/Military Advisor to US Army Central; Senior Defense Official, Defense Attaché, US Embassy Slovenia	None

(photo omitted)	Sarah E.D. Rothenbuhler (51) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	CEO, Birch Equipment (industrial rentals and sales)	None

Interested Trustee

(photo omitted)	Jane K. Carten, MBA (44) 1300 N. State Street Bellingham WA 98225	President, Trustee (since 2017); Nine	President and Director, Saturna Capital Corporation Vice President and Director, Saturna Trust Company President, Saturna Brokerage Services	None


Trustees and Officers (continued)		(unaudited)



Name (Age) and Address		Position(s) held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Officers Who Are Not Trustees

(photo omitted)	Phelps S. McIlvaine (66) 1300 N. State Street Bellingham, WA 98225	Vice President (since 1994); N/A	Vice President, Saturna Capital Corporation Director, Vice President, and former Treasurer Saturna Brokerage Services	N/A

(photo omitted)	Christopher R. Fankhauser (47) 1300 N. State Street Bellingham, WA 98225	Treasurer¹(since 2002); N/A	Chief Operations Officer, Saturna Capital Corporation Vice President and Chief Operations Officer, Saturna Brokerage Services Director, Vice President, and Chief Operations Officer, Saturna Trust Company	N/A

(photo omitted)	Michael E. Lewis (58) 1300 N. State Street Bellingham, WA 98225	Chief Compliance Officer¹ (since 2012); N/A	Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds	N/A

(photo omitted)	Jacob A. Stewart (39) 1300 N. State Street Bellingham, WA 98225	Anti-Money Laundering Officer¹ (since 2015); N/A	Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services Chief Compliance Officer, Saturna Brokerage Services Bank Secrecy Act Officer, Saturna Trust Company	N/A

(photo omitted)	Nicole Trudeau (40) 1300 N. State Street Bellingham WA 98225	Secretary¹ (since 2018)	Chief Legal Officer, Saturna Capital Corporation Former: Counsel, Simpson Thacher & Bartlett LLP; Partner, Stradley Ronon Stevens & Young, LLP; Partner, K&L Gates LLP	N/A

Term of Office: each Trustee serves for the lifetime of the Trust or until they die, resign, are removed, or not re-elected by the shareowners. Each officer serves a one-year term subject to annual reappointment by the Trustees.

The Trust’s Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds’ website, www.sextantfunds.com, includes additional information about the Trustees.

During the year ended November 30, 2019, the Independent Trustess were each paid by the Trust: (1) $2,000 annual retainer plus $1,000 per board meeting attended (in person or by phone), plus reimbursement of travel expenses; (2) $250 for committee meetings; and (3) $250 per quarter for serving as chariman of the board or any committee.

As of November 30, 2019, all Saturna Capital employees listed above as officers owned shares in one or more of the Saturna Investment Trust funds, with Mrs. Carten owning (directly or indirectly) over $0.92 million.

¹	Holds the same postion with Amana Mututal Funds Trust


Renewal of Investment Advisory Contract		(unaudited)

During their meeting of September 17, 2019, the Trustees of Saturna Investment Trust, including those Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940) of the Trust or Saturna Capital (the “Independent Trustees”), discussed the continuance of the Investment Advisory and Administrative Services Agreement (“Agreement”) with the Trust, on behalf of each of the Sextant Funds (Bond Income Fund, Global High Income Fund, Growth Fund, International Fund, Core Fund, and Short-Term Bond Fund) (the “Funds”), and Saturna Capital. In considering the renewal of the Agreement, the Trustees discussed the nature, extent, and quality of the services provided by Saturna Capital to the Trust and each Fund. The Trustees considered Saturna Capital’s specific responsibilities in all aspects of day-to-day management of the Funds as well as the qualifications, experience and responsibilities of the Funds’ portfolio managers and other key personnel at Saturna Capital. The Trustees discussed Saturna Capital’s experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, accounting, marketing, and distribution — all in addition to investment management.

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

The Trustees considered the investment performance of each Fund over time, including each Fund’s average annual total returns relative to its benchmark for the one-, three-, five-, ten-, and fifteen-year periods, as applicable, all as of August 31, 2019. The Trustees also considered comparative information published by Morningstar Inc. (“Morningstar”), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed each Fund’s performance relative to the Fund’s Morningstar category for the one-, three-, five-, ten-, and fifteen-year periods, as applicable, ended August 31, 2019. The Trustees also considered each Fund’s Morningstar performance rankings (one through five stars) and noted the sustainability ratings assigned to some of the Funds by Morningstar. In addition, the Trustees considered each Fund’s performance ranking relative to the Fund’s category selected by Lipper, Inc.

With respect to long-term (10- and 15-year) performance, the Trustees noted that the Sextant International Fund’s average annual total return for the ten- and fifteen-year periods ended on August 31, 2019 was below the Morningstar category average, but the Fund outperformed its benchmark during the same periods. The Trustees noted that the Sextant Growth Fund underperformed its Morningstar category average for the ten- and fifteen-year periods and underperformed its benchmark for the ten-year period, but outperformed its benchmark for the fifteen-year period. The Trustees noted that Sextant Short-Term Bond Fund underperformed its Morningstar category average for the ten- and fifteen-year periods and outperformed its benchmark for the ten-year period, and slightly underperformed its benchmark for the fifteen-year period. The Trustees noted that Sextant Bond Income Fund had underperformed its respective Morningstar category average and benchmark for the same ten- and fifteen-year periods, and Sextant Core Fund outperformed its benchmark and underperformed its Morningstar category average for the ten-year period ended August 31, 2019.

The Trustees considered the short- and medium-term performance of the Funds, noting that Sextant International Fund and Sextant Global High Income Fund each outperformed its Morningstar category average for the five-year period ended August 31, 2019, while each of the other Funds trailed its Morningstar category average during the same period. The Trustees noted that for the three-year period ended on August 31, 2019, Sextant International Fund, Sextant Global High Income Fund, Sextant Growth Fund and Sextant Core Fund each outperformed its respective Morningstar category average, while Sextant Short-Term Bond Fund and Sextant Bond Income Fund each underperformed its respective Morningstar category average.

The Trustees also considered the Funds’ short-term performance, noting that for the one-year period ended on August 31, 2019, Sextant International Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant Core Fund and Sextant Short-term Bond Fund each outperformed its benchmark and respective Morningstar category average, while Sextant Bond Income underperformed its Morningstar category average.

The Trustees noted the generally risk-averse investment style of the Funds and other factors which can affect each Fund’s performance relative to its broader Morningstar category. The Trustees also noted certain differences between each Fund and the peer funds within its Morningstar category, including differences in investment strategies and asset size. The Trustees found that Saturna Capital continued to manage each Fund in a manner that is designed to be risk-averse and attractive to long-term investors. The Trustees discussed and considered the efforts of Saturna Capital to make additional resources available to assist in managing the Funds.


Renewal of Investment Advisory Contract (continued)		(unaudited)

The Trustees also considered Saturna Capital’s focus on improving investment performance without incurring materially higher levels of risk.

The Trustees also considered the performance and expenses of each Fund as compared to smaller group of funds with similar assets and investment objectives and strategies. The Trustees considered these comparative performance and expense data, along with the comparative data published by Morningstar and each Fund’s performance relative to its benchmark, to evaluate the Fund’s performance over near-term and long-term time periods. The Trustees continued to recognize the fulcrum structure of the advisory fee, where the manager’s compensation is directly related to the relative performance of each Fund.

The Trustees also reviewed the fees and expenses of each Fund, including comparative data on fees and expenses published by Morningstar, and considered the components of the Fund’s operating expenses. The Trustees noted the steps that Saturna Capital has undertaken to maintain competitive levels of Fund operating expenses. They noted the significant sponsorship of the Funds by Saturna Capital evidenced, in part, by certain fees and expenses paid by Saturna Capital out of its own resources. The Trustees recognized Saturna Capital’s efforts help make the Funds more widely available and less expensive than would otherwise be the case without Saturna Capital’s efforts.

The Trustees recognized that each Fund remains relatively small and there have not been opportunities to consider economies of scale. The Trustees noted Saturna Capital’s commitment to continue operating the Funds and the costs undertaken by Saturna Capital.

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

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

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

The Trustees concluded based on their business judgement that the fees paid by each Fund to Saturna Capital were, from an arm’s-length bargaining perspective, reasonable and in the best interest of the Fund and its shareowners in light of the services provided, comparative performance, expense and advisory fee information, costs of services provided, profits to be realized, and benefits derived or to be derived by Saturna Capital from its relationship with the Fund. Following this discussion, the Trustees, including the Independent Trustees, unanimously agreed to renew each Fund’s Agreement with Saturna Capital.

Availability of Portfolio Information

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

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

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

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

Householding Policy

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

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

Availability of Proxy Voting Information

(1)

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

(2)

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

Privacy Statement

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

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

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

LOGO


Performance Summary (as of December 31, 2019)		(unaudited)


Average Annual Returns (before any taxes paid by shareowners)
					Expense Ratio¹

	1 Year	3 Year	5 Year	10 Year	Gross	Net

Sustainable Equity Fund (SEEFX)	30.95%	15.16%	n/a	n/a	1.27%	0.75%

S&P Global 1200 Index	28.22%	13.39%	9.50%	9.99%	n/a	n/a



Sustainable Bond Fund (SEBFX)	7.08%	3.16%	n/a	n/a	0.77%	0.65%

FTSE WorldBIG Index	6.88%	4.25%	2.25%	2.40%	n/a	n/a

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

A note about risk: Please see Notes to Financial Statements beginning on page 23 for a discussion of investment risks. For a more detailed discussion of the risks associated with each Fund, please see the Funds’ prospectus or each Fund’s summary prospectus.

By regulation, expense ratios shown in these tables are as stated in the Funds’ most recent Prospectus, dated March 27, 2019, and incorporate results for the fiscal year ended November 30, 2018. Ratios presented in this table differ from the expense ratios shown elsewhere in this report as they represent different periods. Also by regulation, the performance in this table represents the most recent quarter-end performance rather than performance through the Funds’ most recent fiscal period. Saturna Capital, the Fund’s adviser, has voluntarily capped actual expenses of the Sustainable Equity Fund at 0.75% and actual expenses of the Sustainable Bond Fund at 0.65% through March 31, 2020.

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

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

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


Fellow Shareowners:		January 24, 2020

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

Brexit will also have continued impact through 2020. The UK leaving the European Union on January 31, 2020, will not mark the end of the process. As the UK “gets Brexit done” this month, expect a first bounce in the economy. However, details of the trade agreement, and uncertainty related to it, will likely produce volatility in 2020 as the December deadline approaches.

2019 marked a year of renewed expansionary monetary policy as fears of recession sprouted across the globe. These fears led the Federal Reserve to cut interest rates while central banks elsewhere amassed record levels of negative yielding debt during the summer of 2019. In turn, low to negative interest rates injected fuel into equities, igniting the record bull market. Although the amount of negative yielding debt has since been cut, central banks are operating with less dry powder to reignite the economy should fear of recession renew. We expect that in 2020 central banks will play the part of observer as they balance the need to keep tools on hand for an economic downturn with the want to see 2019’s stimulus work its way through the financial system.

Thank you for investing with us. Please read this report and let us know how we can be of assistance to you in your quest for responsible investments choices.

Respectfully,

(photo omitted)

Jane Carten,

President

(photo omitted)

Gary Goldfogel,

Independent Board Chairman



Saturna Sustainable Funds Portfolio Management

(photo omitted)	Jane Carten MBA Saturna Sustainable Equity Fund Portfolio Manager	(photo omitted)	Patrick Drum MBA, CFA^®, CFP^® Saturna Sustainable Bond Fund Portfolio Manager

(photo omitted)	Scott Klimo CFA^® Saturna Sustainable Equity Fund Deputy Portfolio Manager	(photo omitted)	Elizabeth Alm CFA^® Saturna Sustainable Bond Fund Deputy Portfolio Manager


Morningstar Sustainability Rating^™ & Carbon Metrics^™

At Saturna Capital, we have long described ourselves as value and values-based investors. We believe our approach improves the likelihood of achieving superior investment results over the long term. Our approach also leads to investment portfolios we can be proud of from the perspective of Environmental, Social, and Governance (ESG) issues. Morningstar partners with leading ESG research firm Sustainalytics to publish the Morningstar Sustainability Rating^™ and Carbon Metrics^™. Here are Saturna Sustainable Equity Fund’s fiscal period-end results (Saturna Sustainable Bond Fund was not rated for the period).



Saturna Sustainable Equity Fund

As of November 30, 2019		Ø Ø Ø Ø Ø

Ranked in 2nd percentile among 725 World Large Stock Funds

As of September 30, 2019

LOGO

The Morningstar Sustainability Rating, Low Carbon designation, Carbon Risk Score, and Fossil Fuel Involvement % are not based on fund performance and are not equivalent to the Morningstar Rating (“Star Rating”).

© 2019 Morningstar^®. All rights reserved. Morningstar, Inc. is an independent fund performance monitor. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Morningstar Sustainability Rating is as of November 30, 2019. The Morningstar Sustainability Rating^™ is intended to measure how well the issuing companies of the securities within a fund’s portfolio are managing their environmental, social, and governance (“ESG”) risks and opportunities relative to the fund’s Morningstar category peers. The Morningstar Sustainability Rating calculation is a two-step process. First, each fund with at least 50% of assets covered by a company-level ESG score from Sustainalytics receives a Morningstar Portfolio Sustainability Score^™. The Morningstar Portfolio Sustainability Score is an asset-weighted average of normalized company-level ESG scores with deductions made for controversial incidents by the issuing companies, such as environmental accidents, fraud, or discriminatory behavior. The Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Categories in which at least ten (10) funds receive a Portfolio Sustainability Score and is determined by each fund’s rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe.

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

Saturna Sustainable Equity Fund was rated on 100% of Assets Under Management.

Morningstar Carbon Metrics are as of September 30, 2019. Morningstar carbon metrics are asset-weighted portfolio calculations based on their Sustainalytics subsidiary’s carbon-risk research. Based on two of these metrics – Carbon Risk Score and Fossil Fund Involvement % – funds may receive the Low Carbon designation, which allows investors to easily identify low-carbon funds within the global universe.

The portfolio Carbon Risk Score is a number between 0 and 100 (a lower score is better). A portfolio’s Carbon Risk Score is the asset-weighted sum of the carbon risk scores of its holdings, averaged over the trailing 12 months. The carbon risk of a company is Sustainalytics’ evaluation of the degree to which a firm’s activities and products are aligned with the transition to a low-carbon economy. The assessment includes carbon intensity, fossil fuel involvement, stranded assets exposure, mitigation strategies, and green product solutions.

Fossil Fuel Involvement % is the portfolio’s asset-weighted percentage exposure to fossil fuels, averaged over the trailing 12 months. Companies with fossil fuel involment are defined as these in the following subindustries: Thermal Coal Extraction, Thermal Coal Power Generation, Oil & Gas Production, Oil & Gas Power Generation, and Oil and Gas Products and Services.

To receive the Low Carbon designation a fund must have Carbon Risk Score below 10 and a Fossil Fuel Involvement % of less than 7% of assets. For these metrics to be calculated, at least 67% of a portfolio’s assets must be covered by Sustainalytics company carbon-risk research. All Morningstar carbon metrices are calculated quarterly.

Saturna Sustainable Equity Fund was rated on 100% of Assets Under Management.

The Funds’ portfolios are actively managed and are subject to change, which may result in different Morningstar Sustainability Ratings and Carbon Metrics over time.


Saturna Sustainable Equity Fund: Performance Summary		(unaudited)

Average Annual Returns as of November 30, 2019

1 Year

5 Year

10 Year

Expense Ratio¹

Sustainable Equity Fund (SEEFX)²

19.04%

n/a

1.27%

S&P Global 1200 Index

14.97%

8.40%

9.82%

n/a

Growth of $10,000


				Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 27, 2015, to an identical amount invested in the Standard & Poor’s Global 1200 Index, a global stock market index covering nearly 70% of the world’s equity markets. The graph shows that an investment in the Fund would have risen to $13,929 versus $14,902 in the index.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.75%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

²	Operations commenced on March 27, 2015.

Fund Objective

The objective of the Sustainable Equity Fund is capital appreciation.


Top 10 Holdings

% of Total Net Assets

Adobe			3.8%

Apple			3.3%

Mastercard, Class A			2.9%

Dassault Systemes ADR			2.9%

Microsoft			2.7%

Nintendo ADR			2.4%

Home Depot			2.3%

TJX Companies			2.2%

Accenture, Class A			2.2%

AIA Group			2.2%

Portfolio Diversification

% of Total Net Assets

Application Software

8.7%

∎

Household Products

7.5%

∎

Specialty Chemicals

5.7%

∎

IT Services

4.2%

∎

Large Pharma

4.1%

∎

Specialty Apparel Stores

3.4%

∎

Home Products Stores

3.4%

∎

Communications Equipment

3.3%

∎

Semiconductor Devices

2.9%

∎

Consumer Finance

2.9%

∎

Infrastructure Software

2.7%

∎

Electrical Power Equipment

2.5%

∎

Industries <2.5%

42.2%

∎

Other Assets (net of liabilities)

6.5%

∎


Saturna Sustainable Equity Fund: Discussion of Fund Performance		(unaudited)

(photo omitted)

Fiscal Year 2019

The Saturna Sustainable Equity Fund benefitted from its exposure to global markets during the last fiscal year – exposure which, like the tide, has raised all boats. For the fiscal year ended November 30, 2019, the Saturna Sustainable Equity Fund returned 19.04%, confidently outpacing both the 14.97% return of the S&P Global 1200 Index and the 16.11% return of the S&P 500 Total Return Index.

Factors Affecting Past Performance

Saturna Sustainable Equity Fund has a global mandate with assets allocated among 17 nations. The Fund tends to overweight the Technology and Consumer Discretionary sectors – with nine of the Fund’s top 10 holdings in one of those two sectors – but began angling toward greater exposure to Health Care in the past year in order to take advantage of a macrotrend.

Apple, a cornerstone of the Sustainable Equity Fund and the top contributor to the portfolio during the fiscal year, has shattered expectations in the past two years; its price-to-earnings (P/E) ratio saw continued growth, reaching a new peak of 24.7 at the end of the 2019 calendar year. Despite having a P/E ratio that is typically lower than the S&P 500, “Apple’s margins are almost double the S&P 500’s,” lending “support to a higher multiple.”¹ Some analysts expected iPhone sales to slow and enter a decline, but with excitement brewing for 5G, improving near-term expectations for the iPhone 11, and Apple’s wearable devices selling well, “sentiment has improved” with predictions of “year over year growth.”² Taiwan Semiconductor and MasterCard – the lone holding among the top 10 that is neither a Technology nor Consumer Staples stock – rounded out the top three contributors with similar blockbuster performance.

The portfolio’s holdings remained relatively consistent but became more focused as we exited a number of smaller positions for which our conviction declined. One such holding, LatAm Airlines, was sold due to poor performance and for the incongruency of holding an airline in a sustainable fund. Though a necessary evil in many cases, air travel currently contributes about 2.5 percent of global carbon dioxide emissions. The United Nations anticipates the amount of CO2 emitted will triple by 2050, while the International Council on Clean Transportation believes the increase will be “more than 1.5 times as fast as the UN estimate.”³ With a commitment to deeply analyzing an issuer’s approach to the material ESG issues that impact its industry, we seek true sustainability leaders that meet our strict financial criteria. It is possible that the Fund may invest in an airline or other industries that may burden the environment, but that decision will always be heavily weighed against the company’s overall ESG commitment and performance. As long-term investors, we are focused on the sustainable business practices that improve our world and that also generate sustainable value.

Number of iPhone users in the United States from 2012 to 2021

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Gross profit margin forecast of the Apple company worldwide from 2017 to 2019, by segment

LOGO

Continued on next page.

Looking Forward

The 2019 fiscal year was remarkable for the market’s continuing boom, but can the frequency of new, all-time highs we are experiencing continue at the same pace into the future? The sheer amplification of market activity seems to indicate that when something does start to happen, it will be colossal. Whether the market continues to grow, or hits its peak and declines, we will work to ensure Saturna Sustainable Equity Fund is well positioned. Saturna’s portfolio managers believe that market volatility is best addressed by a focus on ESG criteria, and Saturna’s focus on low debt and cash generative, highly sustainable companies led by excellent management teams helps protect the investor from potential downsides.

¹	Trefis Team. Is Apple’s P/E Ratio Too High Or Too Low? Forbes, December 16, 2019. https://www.forbes.com/sites/greatspeculations/2019/12/16/is-apples-pe-ratio-too-high-or-too-low/#344789a57211

²	Feuer, William. After its strongest year in a decade, Apple stock is historically expensive on a price-to-earnings basis, CNBC, December 31, 2019. https://www.cnbc. com/2019/12/31/apple-pe-ratio-is-at-historic-high-following-an-explosive-year.html

³	Tabuchi, Hiroko. ‘Worse Than Anyone Expect’: Air Travel Emissions Vastly Outpace Predictions, September 19, 2019. https://www.nytimes.com/2019/09/19/climate/ air-travel-emissions.html


Saturna Sustainable Equity Fund: Schedule of Investments		As of November 30, 2019



Common Stocks – 93.5%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Communications

Entertainment Content

Walt Disney Company		700		$81,479		$106,106	United States		1.3%

Internet Media

Naspers ADR		1,000		39,122		28,490	South Africa		0.3%

Telecom Carriers

Telekomunikasi Indonesia ADR		2,000		65,178		55,340	Indonesia		0.7%



				185,779		189,936			2.3%

Consumer Discretionary

Apparel, Footwear & Accessory Design

adidas ADR		1,100		138,601		171,655	Germany³		2.1%

Automobiles

Toyota Motor ADR		1,000		107,633		140,210	Japan		1.7%

E-Commerce Discretionary

Amazon.com²		60		103,132		108,048	United States		1.3%

Home Products Stores

Home Depot		850		100,842		187,434	United States		2.3%

Lowe’s		750		80,222		87,982	United States		1.1%



				181,064		275,416			3.4%

Other Commercial Services

Ecolab		723		82,096		134,962	United States		1.6%

Restaurants

Starbucks		1,713		102,502		146,342	United States		1.8%

Specialty Apparel Stores

Industria de Diseno Textil		3,000		92,121		93,411	Spain		1.2%

TJX Companies		3,000		103,932		183,390	United States		2.2%



				196,053		276,801			3.4%

Toys & Games

Hasbro		600		56,958		61,020	United States		0.8%

				968,039		1,314,454			16.1%

Consumer Staples

Food & Drug Stores

Clicks Group ADR		1,500		38,630		50,460	South Africa		0.6%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	November 30, 2019	Annual Report	9


Saturna Sustainable Equity Fund: Schedule of Investments		As of November 30, 2019



Common Stocks – 93.5%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Consumer Staples (continued)

Household Products

Church & Dwight		2,400		$104,866		$168,576	United States		2.1%

Kimberly-Clark de Mexico, Class A²		13,000		21,584		24,721	Mexico		0.3%

L’Oreal ADR		2,750		129,792		156,915	United States³		1.9%

Reckitt Benckiser Group PLC ADR		6,250		100,292		100,188	United Kingdom		1.2%

Unilever NY		2,700		116,608		160,785	Netherlands		2.0%



				473,142		611,185			7.5%

Packaged Food

Nestle ADR		1,000		86,610		103,940	Switzerland		1.2%

				598,382		765,585			9.3%

Energy

Renewable Energy Equipment

Siemens Gamesa Renewable Energy		6,000		93,745		95,748	Spain		1.2%

Vestas Wind Systems		900		65,551		85,654	Denmark		1.0%



				159,296		181,402			2.2%

				159,296		181,402			2.2%

Financials

Banks

Toronto-Dominion Bank		2,800		131,011		161,840	Canada		2.0%

Consumer Finance

Mastercard, Class A		824		74,154		240,798	United States		2.9%

Diversified Banks

Banco Santander ADR		10,081		50,683		39,013	Spain		0.5%

Islamic Banking

BIMB Holdings		150,600		153,571		149,999	Malaysia		1.8%

Life Insurance

AIA Group		18,000		131,997		180,140	Hong Kong		2.2%

P&C Insurance

Chubb		1,000		122,138		151,480	Switzerland		1.9%

				663,554		923,270			11.3%

Health Care

Health Care Facilities

IHH Healthcare		80,000		105,026		102,895	Malaysia		1.3%

Large Pharma

Astellas Pharma Inc. ADR		5,000		82,913		85,050	United States		1.0%

Novartis ADR		1,750		157,311		161,525	Switzerland		2.0%

Novo Nordisk ADR		1,569		86,408		88,099	Denmark		1.1%



				326,632		334,674			4.1%

Continued on next page.




10	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.


Saturna Sustainable Equity Fund: Schedule of Investments		As of November 30, 2019



Common Stocks – 93.5%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Health Care (continued)

Medical Equipment

Koninklijke Philips		3,588		$101,701		$166,770	Netherlands		2.0%

				533,359		604,339			7.4%

Industrials

Commercial & Residential Building Equipment & Systems

Legrand		2,100		140,972		165,926	France		2.0%

Electrical Components

TE Connectivity		1,351		117,010		125,251	Switzerland		1.5%

Electrical Power Equipment

Schneider Electric ADR		7,000		127,185		134,610	United States		1.7%

Siemens ADR		1,000		66,086		64,440	Germany		0.8%



				193,271		199,050			2.5%

Rubber & Plastic

Hartalega		80,000		63,885		100,580	Malaysia		1.2%

				515,138		590,807			7.2%

Materials

Specialty Chemicals

Johnson Matthey		4,031		163,844		149,746	United Kingdom		1.9%

Koninklijke DSM		1,213		135,638		155,545	Netherlands		1.9%

Novozymes ADR		3,300		146,658		157,542	Denmark		1.9%



				446,140		462,833			5.7%

				446,140		462,833			5.7%

Technology

Application Software

Adobe Systems²		1,000		108,410		309,530	United States		3.8%

Dassault Systemes ADR		1,506		119,029		238,038	France		2.9%

Open Text		3,750		154,568		163,425	Canada		2.0%



				382,007		710,993			8.7%

Communications Equipment

Apple		1,000		113,474		267,250	United States		3.3%

Consumer Electronics

Nintendo ADR		4,000		189,340		193,560	United States		2.4%

Electronics Components

Murata Manufacturing		3,000		133,698		173,885	Japan		2.1%

Information Services

Wolters Kluwer		2,000		119,754		143,749	Netherlands		1.8%

Infrastructure Software

Microsoft		1,438		62,724		217,684	United States		2.7%

Continued on next page.




The accompanying notes are an integral part of these financial statements.	November 30, 2019	Annual Report	11


Saturna Sustainable Equity Fund: Schedule of Investments		As of November 30, 2019



Common Stocks – 93.5%	Number of Shares		Cost		Market Value		Country¹	Percentage of Assets

Technology (continued)

IT Services

Accenture, Class A		900		$89,878		$181,044	Ireland		2.2%

CGI Group Inc Class A²		2,000		146,223		166,280	Canada		2.0%



				236,101		347,324			4.2%

Semiconductor Devices

NXP Semiconductors		1,300		127,836		150,254	Netherlands		1.8%

STMicroelectronics		3,800		84,537		92,606	Switzerland		1.1%



				212,373		242,860			2.9%

Semiconductor Manufacturing

Taiwan Semiconductor ADR		3,250		78,323		172,543	Taiwan		2.1%



				1,527,794		2,469,848			30.2%

Utilities

Power Generation

Iberdrola		15,000		153,475		147,673	Spain		1.8%

				153,475		147,673			1.8%



Total investments				$5,750,956		$7,650,147			93.5%

Other assets (net of liabilities)						534,720			6.5%

Total net assets						$8,184,867			100.0%

¹	Country of domicile

²	Non-income producing security

³	Denotes a country of primary exposure

ADR: American Depository Receipt


Countries			(unaudited)




Weightings shown are a percentage of total net assets.




12	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Saturna Sustainable Equity Fund

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $5,750,956)			$7,650,147

Cash			558,384

Dividends and interest receivable			10,721

Receivable from adviser			4,487

Other assets			2,385

Receivable for Fund shares sold			853


Total assets			8,226,977


Liabilities

Accrued registration/filling fees			26,630

Accrued audit expenses			5,520

Accrued retirement plan custody fee			5,099

Accrued other expenses			2,024

Accrued Chief Compliance Officer expenses			1,958

Accrued trustee expenses			879


Total liabilities			42,110


Net assets			$8,184,867



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$6,512,942

Total distributable earnings			1,671,925


Net assets applicable to Fund shares outstanding			$8,184,867


Fund shares outstanding			602,641

Net asset value, offering, and redemption price per share			$13.58

Statement of Operations


Year ended November 30, 2019



Investment income

Dividend income (net of foreign tax of ($12,666)	$99,238


Total investment income	99,238


Expenses

Filing and registration fees	46,901

Advisory fees	40,911

Audit fees	8,973

Retirement plan custodial fees	5,271

Printing and postage fees	3,420

Chief Compliance Officer expenses	3,355

Trustee fees	2,292

Other expenses	1,032

Legal fees	954

Custodian fees	759

Other operating expenses	154

Misc. Shareowner expense	15


Total gross expenses	114,037


Less adviser fees waived	(64,802	)

Less custodian fee credits	(746	)


Net expenses	48,489


Net investment income	$50,749





Net realized gain from investments and foreign currency	$12,338

Net increase in unrealized appreciation on investments and foreign currency	1,032,935


Net gain on investments and foreign currency	$1,045,273



Net increase in net assets resulting from operations	$1,096,022




The accompanying notes are an integral part of these financial statements.	November 30, 2019	Annual Report	13

Saturna Sustainable Equity Fund


Statements of Changes of Net Assets	Year ended November 30, 2019		Year ended November 30, 2018

Increase in net assets from operations

From operations

Net investment income	$50,749		$45,439

Net realized gain (loss) on investment and foreign currency	12,338		(24,490	)

Net increase in unrealized appreciation on investments and in foreign currencies	1,032,935		23,969


Net increase in net assets resulting from operations	1,096,022		44,918




Distributions to shareowners	(46,186	)	(40,318	)



Capital share transactions

Proceeds from sales of shares	2,048,795		1,036,069

Value of shares issued in reinvestment of dividends	46,186		40,318

Cost of shares redeemed	(618,104	)	(407,062	)


Total capital share transactions	1,476,877		669,325


Total increase in net assets	2,526,713		673,925



Net assets

Beginning of year	5,658,154		4,984,229

End of year	$8,184,867		$5,658,154



Shares of the Fund sold and redeemed

Number of shares sold	159,107		87,399

Number of shares issued in reinvestment of dividends	4,324		3,500

Number of shares redeemed	(52,449	)	(34,886	)


Net increase in number of shares outstanding	110,982		56,013


Financial Highlights			For year ended November 30,						Period ended^A

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		November 30, 2015

Net asset value at beginning of year	$11.51		$11.44		$9.43		$9.73		$10.00

Income from investment operations

Net investment income	0.09		0.09		0.09		0.06		0.02

Net gains (losses) on securities (both realized & unrealized)	2.08		0.07		1.97		(0.36	)	(0.28	)


Total from investment operations	2.17		0.16		2.06		(0.30	)	(0.26	)


Less distributions

Dividends (from net investment income)	(0.10	)	(0.09	)	(0.05	)	-		(0.01	)


Total distributions	(0.10	)	(0.09	)	(0.05	)	-		(0.01	)




Net asset value at end of year	$13.58		$11.51		$11.44		$9.43		$9.73


Total return	19.04%		1.39%		22.01%		(3.08	)%	(2.60	)%^B

Ratios / supplemental data

Net assets ($000), end of year	$8,185		$5,658		$4,984		$3,343		$3,423

Ratio of expenses to average net assets

Before fee waivers	1.81%		1.27%		1.48%		1.65%		1.23%	^C

After fee waivers	0.78%		0.76%		0.88%		1.00%		1.00%	^C

After fee waivers and custodian fee credits	0.75%		0.75%		0.86%		0.99%		0.99%	^C

Ratio of net investment income after fee waivers and custodian fee credits to average net assets	0.80%		0.82%		0.95%		0.67%		0.29%	^C

Portfolio turnover rate	13%		8%		12%		48%		53%	^B

^A	Operations commenced on March 27, 2015.

^B	Not annualized.

^C	Annualized.




14	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.


Saturna Sustainable Bond Fund: Performance Summary		(unaudited)

Average Annual Returns as of November 30, 2019

1 Year

5 Year

10 Year

Expense Ratio¹

Sustainable Bond Fund (SEBFX)²

6.09%

n/a

0.77%

FTSE WorldBIG Index³

8.55%

2.02%

1.95%

n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the index is expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on March 27, 2015, to an identical amount invested in the FTSE WorldBIG Index, a multi-asset, multi-currency benchmark, which provides a broad-based measure of the global fixed income markets. The graph shows that an investment in the Fund would have risen to $10,920 versus rising to $11,381 in the index.

By regulation, the expense ratio shown in this table is as stated in the Fund’s most recent prospectus which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018, before fee waivers. The expense ratio shown in the most recent prospectus after fee waivers was 0.65%. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different periods.

²	Operations commenced March 27, 2015.

³	The FTSE WorldBIG Index was formerly known as the Citi WorldBIG Index. The London Stock Exchange Group acquired Citigroup Index LLC in August 2017.

Fund Objective

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


Top 10 Holdings

% of Total Net Assets

Toronto-Dominion Bank (1.85% due 09/11/2020)			4.9%

KFW (2.00% due 11/30/2021)			4.7%

First Abu Dhabi Bank (3.00% due 03/30/2022)			4.6%

Nokia OYJ (3.375% due 06/12/2022)			4.6%

Koninklijke DSM NV (1.00% due 04/09/2025)			4.1%

Telus (3.20% due 04/05/2021)			4.1%

United States Treasury Note (3.625% due 02/15/2021)			4.1%

MAF Sukuk (4.638% due 05/14/2029)			3.9%

NMC Health Sukuk (5.95% due 11/21/2023)			3.8%

United States Treasury Bond (4.50% due 05/15/2038)			3.7%

Portfolio Diversification

% of Total Net Assets

Government Bonds

30.9%

∎

LOGO

Financials

25.7%

∎

Technology

10.4%

∎

Consumer Discretionary

9.8%

∎

Health Care

6.5%

∎

Communications

4.1%

∎

Materials

4.1%

∎

Consumer Staples

1.2%

∎

Industrials

0.9%

∎

Other Assets (net of liabilities)

6.4%

∎


Saturna Sustainable Bond Fund: Discussion of Fund Performance		(unaudited)

(photo omitted)

Fiscal Year 2019

For the fiscal year ending November 30, 2019, the Saturna Sustainable Bond Fund produced a total return of 6.09% versus its benchmark, the FTSE World Big Bond Index, which returned 8.55%. The Fund had an effective duration (price sensitivity to changes in interest rates) of 3.34 years relative to 7.10 for the Index. The underperformance was primarily due to the Fund’s being overweight floating rate securities in December of 2018, when the combination of possible Fed rate cuts and low liquidity caused prices to fall.

Factors Affecting Past Performance

Corporate credit spreads, floating rate securities, currency movements, and US Treasury positions all played an important role in the performance of Sustainable Bond Fund. Corporate credit spreads tightened throughout 2019, especially in the BBB space. Many of the Fund’s top performers included corporate bonds with BBB credit ratings. For example, AXA Insurance was the top performing security, showing a total return of 20% for the year.

The majority of negative performance occurred in the Fund’s floating rate securities from mid-November through December of 2018, with prices leveling out starting the beginning of 2019. Floating rate notes (FRNs) are sensitive to future expectations of interest rates, as the securities have longer final maturities with interest rates that reset quarterly. The price declines coincided immediately after Federal Reserve Chairman Jerome Powell’s November 2018 remarks about growth challenges in 2019 including slowing demand abroad, fading fiscal stimulus at home, and lagged economic impact of the Fed’s past rate increases. The expectations for potentially fewer rate hikes and an extended lower interest rate environment drove the price volatility. The securities saw some price improvement, and the Fund sold all floating rate positions, bringing the exposure down from 19.89% on 11/30/18, to 0% by 2019 fiscal year-end. Going forward, the Fund is positioned for expected future volatility.

In total, the Sustainable Bond Fund held 27.46% of the portfolio in foreign currencies as of 11/30/19, and currency movement played an important role in performance. The Fund’s 6.49% position in the Mexican peso produced favorable returns, with peso-denominated positions showing a total return of 16.08% for the year. Canadian dollar-denominated positions also produced positive results, returning 4.49% for the year. Brazilian and Colombian currencies depreciated relative to the dollar and detracted from overall performance.



	Sustainable Bond Fund Exposure	Index Exposure	11/30/18 - 11/29/19 Performance (per USD	)

Canadian Dollar	8.67	-	0.08

Mexican Peso	6.49	-	4.28

Euro	4.13	29.36	-2.64

Colombian Peso	2.74	-	-8.04

Brazilian Real	2.51	-	-8.75

Australian Dollar	1.73	0.88	-7.43

Norwegian Krone	1.19	-	-6.57

New Zealand Dollar	-	-	-6.55

British Pound	-	4.21	1.38

Japanese Yen	-	10.33	3.73

Other	-	2.66	-

Aside from currency movements, the Fund’s positions in US Treasurys contributed positively to performance, with downward shifts across the yield curve for the year. As of 11/30/19, the Fund held 11.39% in Treasury bonds. The 10, 20, and 30-year Treasury positions in the Fund produced a total return of 11.88%, 15.36%, and 14.49%, respectively.

US Treasury Curve

LOGO

Looking Forward

Over the past year, the Fund has focused on favorable positioning for potential volatility and will continue this into next year. The portfolio has shifted focus to high-grade corporate issues in the one to three-year maturity range, and global exposure in well-diversified companies better positioned to handle business cycles. As a part of the overall strategy, the Fund is also set up to take advantage of select global opportunities with excellent sustainability stories should volatility lend to favorable pricing in 2020. Sustainable Bond Fund has been expanding positions in higher-grade corporate issues, while making strategic curve allocations with the use of Treasurys.

The outlook on monetary policy for early 2020 is that the Federal Reserve will likely stay on hold, keeping short-end yields stable, while the longer end will move with the economy. The Federal Reserve meeting at the end of January 2020 is likely to focus on funding markets and the balance sheet rather than any meaningful shifts in monetary policy. 2019 saw three cuts by the Fed, which have helped reverse the yield curve inversion. As shown in the chart above, 2019 saw the Treasury curve shift downward, as recession fears driven by falling manufacturing activity and tariffs weighed on the economy and pushed yields lower. Going forward, a trade deal with China or easing fears about a potential recession would likely see the 10-year Treasury yields go higher.


Saturna Sustainable Bond Fund: Schedule of Investments		As of November 30, 2019

Corporate Bonds – 62.7%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Communications

Telus

3.20% due 04/05/2021

CAD 1,500,000

$1,142,679

Canada

4.1%

1,142,679

4.1%

Consumer Discretionary

Barry Callebaut²

5.50% due 06/15/2023

500,000

544,487

Belgium

2.0%

Barry Callebaut³

5.50% due 06/15/2023

500,000

544,487

Belgium

2.0%

BMW US Capital

2.75% due 12/02/2019

AUD 200,000

135,280

Germany

0.4%

Danone³

2.077% due 11/02/2021

500,000

499,769

France

1.8%

Hasbro

3.15% due 05/15/2021

500,000

505,616

United States

1.8%

Starbucks

2.45% due 06/15/2026

500,000

504,101

United States

1.8%

2,733,740

9.8%

Consumer Staples

Nestle Holdings

2.75% due 04/15/2020

NOK 3,000,000

326,409

Switzerland

1.2%

326,409

1.2%

Financials

AXA²

5.125% due 01/17/2047

500,000

545,909

France

2.0%

Canadian Imperial Bank⁴

3.42% due 01/26/2026

CAD 1,150,000

877,621

Canada

3.1%

First Abu Dhabi Bank²

3.00% due 03/30/2022

1,250,000

1,266,385

United Arab Emirates

4.6%

Iron Mountain

5.75% due 08/15/2024

1,000,000

1,013,210

United States

3.6%

MAF Sukuk²

4.638% due 05/14/2029

1,000,000

1,072,941

United Arab Emirates

3.9%

RaboBank

2.50% due 01/19/2021

500,000

503,029

Netherlands

1.8%

RaboBank³

4.75% due 01/15/2020

500,000

501,623

Netherlands

1.8%

Toronto-Dominion Bank

1.85% due 09/11/2020

1,350,000

1,349,908

United States

4.9%

7,130,626

25.7%

Health Care

NMC Health Sukuk²

5.95% due 11/21/2023

1,000,000

1,056,396

United Arab Emirates

3.8%

Novartis Capital

1.80% due 02/14/2020

250,000

249,936

Switzerland

0.9%

Roche

2.875% due 09/29/2021

500,000

508,919

Switzerland

1.8%

1,815,251

6.5%

Industrials

Ingersoll-Rand

2.625% due 05/01/2020

250,000

250,459

Luxembourg

0.9%

250,459

0.9%

Materials

Koninklijke DSM NV²

1.00% due 04/09/2025

EUR 1,000,000

1,150,040

Netherlands

4.1%

1,150,040

4.1%

Continued on next page.




18	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.


Saturna Sustainable Bond Fund: Schedule of Investments		As of November 30, 2019

Corporate Bonds – 62.7%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Technology

Apple²

2.65% due 06/10/2020

AUD 500,000

$340,670

United States

1.2%

Microsoft

5.30% due 02/08/2041

525,000

723,429

United States

2.6%

Nokia OYJ

3.375% due 06/12/2022

1,250,000

1,264,000

Finland

4.6%

RELX

4.00% due 03/18/2029

500,000

549,469

United Kingdom

2.0%

2,877,568

10.4%

Total Corporate Bonds

$17,426,772

62.7%

Government Bonds – 30.9%

Coupon / Maturity

Face Amount

Market Value

Country¹

Percentage of Assets

Banks

KFW

2.00% due 11/30/2021

$1,300,000

$1,308,183

Germany

4.7%

1,308,183

4.7%

Foreign Government Bonds

Federal Republic of Brazil

12.50% due 01/05/2022

BRL 2,500,000

675,704

Brazil

2.4%

International Financial Corp

4.75% due 04/29/2021

MXN 15,000,000

741,842

Mexico

2.7%

Mexico Bonos Desarrollo

6.50% due 06/10/2021

MXN 200,000

1,016,804

Mexico

3.7%

Ontario

2.65% due 02/05/2025

CAD 500,000

390,571

Canada

1.4%

Perusahaan Penerbit SBSN²

3.75% due 03/01/2023

500,000

518,155

Indonesia

1.9%

Republic of Colombia

7.75% due 04/14/2021

COP 2,500,000,000

735,501

Colombia

2.6%

4,078,577

14.7%

United States Treasury Bonds

United States Treasury Bond

5.25% due 11/15/2028

500,000

643,945

United States

2.3%

United States Treasury Bond

4.50% due 05/15/2038

750,000

1,037,373

United States

3.7%

United States Treasury Bond

3.375% due 11/15/2048

300,000

375,363

United States

1.4%

2,056,681

7.4%

United States Treasury Note

United States Treasury Note

3.625% due 02/15/2021

$1,100,000

1,125,008

United States

4.1%

1,125,008

4.1%

Total Government Bonds

$8,568,449

30.9%

Total investments

(Cost is $26,038,467)

25,995,221

93.6%

Other assets (net of liabilities)

1,780,211

6.4%

Total net assets

$27,775,432

100.0%

¹	Country of risk

Security was purchased pursuant to Regulation S under the Securities Act of 1933 which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At November 30, 2019, the aggregate value of these securities was $6,494,983 representing 23.4% of net assets.

Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Trust’s Board of Trustees. At November 30, 2019, the net value of these securities was $1,545,879 representing 5.6% of net assets.

⁴	Canadian Imperial Bank is a fixed to float bond. The bond has a fixed rate until 01/26/2021. The interest rate represents the rate in effect at November 30, 2019.




The accompanying notes are an integral part of these financial statements.	November 30, 2019	Annual Report	19


Saturna Sustainable Bond Fund: Schedule of Investments		As of November 30, 2019


Countries			(unaudited)





Weightings shown are a percentage of total net assets.

Bond Quality Diversification

(unaudited)

% of Total Net Assets

Rated “AAA”

21.5%

∎

LOGO

Rated “AA+”

6.1%

∎

Rated “AA-”

12.6%

∎

Rated “A+”

1.3%

∎

Rated “A-”

9.8%

∎

Rated “BBB+”

14.6%

∎

Rated “BBB”

9.3%

∎

Rated “BBB-”

4.0%

∎

Rated “BB+”

3.8%

∎

Rated “BB”

7.0%

∎

Rated “B”

3.6%

∎

Other Assets (net of liabilities)

6.4%

∎

Credit ratings are the lesser of S&P Global Ratings or Moody’s Investors Service. If neither S&P nor Moody’s rate a particular security, that security is categorized as not rated (except for US Treasury securities and securities issued or backed by US agencies which inherit the credit rating for the US government). Ratings range from AAA (highest) to D (lowest). Bonds rated BBB or above are considered investment grade. Credit ratings BB and below are lower-rated securities (junk bonds). Ratings apply to the credit worthiness of the issuers of the underlying securities and not the fund or its shares. Ratings may be subject to change.




20	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Saturna Sustainable Bond Fund

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $26,038,467)	$25,995,221

Cash	1,484,483

Dividends and interest receivable	319,522

Other assets	20,471

Receivable for Fund shares sold	258


Total assets	27,819,955


Liabilities

Accrued registration/filling fees	11,886

Accrued audit expenses	9,100

Accrued advisory fees	6,947

Payable for Fund shares redeemed	6,355

Accrued Chief Compliance Officer expenses	4,004

Distributions payable	2,913

Accrued other expenses	1,636

Accrued trustee expenses	1,039

Accrued retirement plan custody fee	643


Total liabilities	44,523


Net assets	$27,775,432



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)	$28,284,752

Total distributable earnings	(509,320	)


Net assets applicable to Fund shares outstanding	$27,775,432


Fund shares outstanding	2,862,545

Net asset value, offering, and redemption price per share	$9.70

Statement of Operations


Year ended November 30, 2019



Investment income

Interest income	$1,035,947


Total investment income	1,035,947


Expenses

Advisory fees	161,348

Filing and registration fees	27,117

Audit fees	19,482

Chief Compliance Officer expenses	13,421

Trustee fees	6,530

Printing fees	3,549

Custodian fees	3,430

Legal fees	3,131

Postage fee expense	2,172

Insurance fees	1,956

Retirement plan custodial fees	754

Other operating expenses	635


Total gross expenses	243,525


Less adviser fees waived	(48,245	)

Less custodian fee credits	(3,353	)


Net expenses	191,927


Net investment income	844,020





Net realized loss from investments and foreign currency	(526,018	)

Net decrease in unrealized depreciation on investments and foreign currency	1,466,882


Net gain on investments	$940,864



Net increase in net assets resulting from operations	$1,784,884




The accompanying notes are an integral part of these financial statements.	November 30, 2019	Annual Report	21

Saturna Sustainable Bond Fund


Statements of Changes in Net Assets	Year ended November 30, 2019		Year ended November 30, 2018

Increase (decrease) in net assets from operations

From operations

Net investment income	$844,020		$821,787

Net realized loss on investment	(526,018	)	(88,078	)

Net increase (decrease) in unrealized appreciation	1,466,882		(1,499,785	)


Net increase (decrease) in net assets	1,784,884		(766,076	)




Distributions to shareowners	(787,144	)	(722,566	)



Capital share transactions

Proceeds from sales of shares	9,188,924		14,807,636

Value of shares issued in reinvestment of dividends	694,871		637,199

Cost of shares redeemed	(14,752,663	)	(4,289,584	)


Total capital share transactions	(4,868,868	)	11,155,251


Total increase (decrease) in net assets	(3,871,128	)	9,666,609



Net assets

Beginning of year	31,646,560		21,979,951

End of year	$27,775,432		$31,646,560



Shares of the Fund sold and redeemed

Number of shares sold	957,716		1,517,615

Number of shares issued in reinvestment of dividends	72,324		65,470

Number of shares redeemed	(1,538,171	)	(438,446	)


Net increase (decrease) in number of shares outstanding	(508,131	)	1,144,639


Financial Highlights	Year ended November 30,								Period ended^A

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		Nov.30, 2015

Net asset value at beginning of year	$9.39		$9.87		$9.65		$9.75		$10.00

Income from investment operations

Net investment income	0.28		0.26		0.27		0.24		0.12

Net gains (losses) on securities (both realized and unrealized)	0.29		(0.48	)	0.23		(0.10	)	(0.25	)


Total from investment operations	0.57		(0.22	)	0.50		0.14		(0.13	)


Less distributions

Dividends (from net investment income)	(0.26	)	(0.26	)	(0.27	)	(0.24	)	(0.12	)

Capital gains distribution	-		-		(0.01	)	-		-


Total distributions	(0.26	)	(0.26	)	(0.28	)	(0.24	)	(0.12	)




Net asset value at end of year	$9.70		$9.39		$9.87		$9.65		$9.75


Total return	6.09%		(2.29	)%	5.28%		1.37%		(1.29	)%^B

Ratios / supplemental data

Net assets ($000), end of year	$27,775		$31,647		$21,980		$8,639		$6,885

Ratio of expenses to average net assets

Before fee waivers	0.83%		0.77%		0.92%		1.17%		1.02%	^C

After fee waivers	0.66%		0.66%		0.75%		0.89%		0.90%	^C

After fee waivers and custodian fee credits	0.65%		0.65%		0.74%		0.89%		0.89%	^C

Ratio of net investment income after fee waivers custodian fee credits to average net assets	2.87%		2.99%		2.82%		2.46%		1.92%	^C

Portfolio turnover rate	38%		25%		14%		46%		4%	^B

^A	Operations commenced on March 27, 2015.

^B	Not annualized on periods less than one year.

^C	Annualized on periods less than one year.




22	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.

Notes To Financial Statements

NOTE 1 – Organization

Saturna Investment Trust (the “Trust”) was established under Washington State Law as a business trust on February 20, 1987. The Trust is registered as an open-end, diversified management company under the Investment Company Act of 1940, as amended. Nine portfolio series have been created to date, two of which are covered by this annual report: Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund (the “Funds”). The Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund, and the Idaho Tax-Exempt Fund are offered through separate prospectuses, the results of which are contained in separate reports.

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

Investment risks:

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

Ratings are dependent upon the associated ESG risks that are most pertinent to the sector in which an issuer operates. The ratings process associated with sustainable and responsible investing reduces the investable universe for each Fund, which limits opportunities and may increase the risk of loss during market declines. The adviser believes that sustainable investing may mitigate security-specific risk, but there is no guarantee that the securities favored by our investment process will perform better and may perform worse than those that are not favored.

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

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

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

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

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

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

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

NOTE 2 - Significant Accounting Policies

Security valuation:

Fixed-income debt instruments, such as commercial paper, bankers’ acceptances, and US Treasury Bills, with a maturity of 60 days or less are valued at amortized cost, which approximates market value.

Notes To Financial Statements (continued)

Any discount or premium is accreted or amortized on a straight-line basis until maturity.

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

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

Foreign currency:

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

Share valuation:

Fair value measurements:



Funds	Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input		Total

Sustainable Equity Fund

Common Stocks

Communications		$189,936		$-		$-		$189,936

Consumer Discretionary		1,221,043		93,411		-		$1,314,454

Consumer Staples		740,864		24,721		-		$765,585

Energy		-		181,402		-		$181,402

Financials		593,131		330,139		-		$923,270

Health Care		501,444		102,895		-		$604,339

Industrials		324,301		266,506		-		$590,807

Materials		157,542		305,291		-		$462,833

Technology		2,152,214		317,634		-		$2,469,848

Utilities		-		147,673				$147,673

Total Assets		$5,880,475		$1,769,672		$-		$7,650,147



Sustainable Bond Fund

Corporate Bonds¹		$-		$17,426,772		$-		$17,426,772

Government Bonds¹		$-		$8,568,449		$-		$8,568,449

Total Assets		$-		$25,995,221		$-		$25,995,221

¹	See Schedule of Investments for industry breakout.

During the period ended November 30, 2019, no Fund had transfers between Level 1, Level 2 or Level 3.

Notes To Financial Statements (continued)

Level 1 —

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

Level 2 —

Level 3 —

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

Investment concentration:

Federal income taxes:

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

The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2016-2018) or expected to be taken in the Funds’ 2019 tax returns. The Funds identify their major tax jurisdictions as US federal and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Reclassification of capital accounts:

As of November 30, 2019, the the reclassification of capital accounts were as follows:



	Equity Fund		Bond Fund

Distributable earnings		$-		$28,677

Paid-in capital		$-		$(28,677	)

Distributions to shareowners:

For the Sustainable Bond Fund, dividends to shareowners from net investment income are paid daily and distributed on the last business day of each month. Sustainable Equity Fund pays income dividends annually, typically by the end of the year. As a result of its investment strategy, the Saturna Sustainable Equity Fund may not pay income dividends. For both Funds, distributions of capital gains, if any, are made at least annually, and as required to comply with federal excise tax requirements. Distributions to shareowners are determined in accordance with income tax regulations and are recorded on the ex-dividend date. Dividends are paid in shares of the Funds, at the net asset value on the payable date. Shareowners may elect to take distributions if they total $10 or more in cash.

Use of estimates:

Foreign taxes:

Other:

Interest income is recognized on an accrual basis. Premiums on

Notes To Financial Statements (continued)

securities purchased are amortized, and discounts are accreted over the lives of the respective securities. Dividends from equity securities are recorded as income on the ex-dividend date.

Recent Accounting Pronouncement:

In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.

NOTE 3 – Transactions with Affiliated Persons

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

The Adviser has voluntarily undertaken to limit expenses of the Sustainable Equity Fund to 0.75% and the Sustainable Bond Fund to 0.65% through March 31, 2020. For the year ended November 30, 2019, the advisory fees incurred were as follows:



	Adviser Fees		Adviser Fees Waived			Expense Reimbursement

Sustainable Equity		$40,911		$(40,911	)		$(23,891	)

Sustainable Bond		$161,348		$(48,245	)		$-

In accordance with the expense limitation noted above, for the year ended November 30, 2019, Saturna Capital waived a portion of the advisory fees of the Sustainable Equity Fund and Sustainable Bond Fund. The adviser cannot recoup previously waived fees.

Saturna Brokerage Services, Inc. (“SBS”), a discount brokerage and subsidiary of Saturna Capital Corporation, is registered as a broker-dealer and acts as distributor. On December 19, 2014, the Funds adopted a Distribution Plan in accordance with Rule 12b-1 under the 1940 Act. On June 2, 2017, 12b-1 fees were terminated for both Saturna Sustainable Funds.



Retirement plan custodial fees

Sustainable Equity			$5,271

Sustainable Bond			$754

Mrs. Jane Carten serves as a trustee and president of the Trust. She is also a director and president of Saturna Capital and vice president of Saturna Trust Company. Mrs. Carten is not compensated by the Trust. For the year ended November 30, 2019, the Trust incurred compensation expenses of $31,500 which is included in $44,545 of total expenses for the independent Trustees. The Saturna Sustainable Funds incurred $8,882 of these total expenses.



Chief Compliance Officer

Sustainable Equity			$3,355

Sustainable Bond			$13,421

On November 30, 2019, the trustees, officers, and their affiliates as a group owned 63.51% and 14.04% of the outstanding shares of Sustainable Equity Fund and Sustainable Bond Fund, respectively.

Notes To Financial Statements (continued)

NOTE 4 – Distributions to Shareowners

The tax characteristics of distributions paid for the year ended November 30, 2019, and the fiscal year ended November 30, 2018 were as follows:



	Year ended November 30, 2019		Year ended November 30, 2018

Sustainable Equity Fund

Ordinary income		$46,186		$40,318


Sustainable Bond Fund

Ordinary income		$787,144		$722,566

NOTE 5 – Federal Income Taxes

The cost basis of investments for federal income tax purposes on November 30, 2019, was as follows:



	Sustainable Equity			Sustainable Bond

Cost of investments		$5,750,956			$26,038,467


Gross tax unrealized appreciation		$1,958,684			$433,637

Gross tax unrealized depreciation		$(59,493	)		$(476,883	)


Net tax unrealized appreciation (depreciation)		$1,899,191			$(43,246	)

As of November 30, 2019, components of distributable earnings on a tax basis were as follows:



Sustainable Equity

Undistributed ordinary income	$35,663


Tax accumulated earnings	35,663

Accumulated capital losses	(262,636	)

Unrealized appreciation	1,899,191

Other unrealized losses	(293	)


Total accumulated earnings	1,671,925



Sustainable Bond

Accumulated capital losses	(459,923	)

Unrealized depreciation	(43,246	)

Other unrealized losses	(6,151	)


Total accumulated earnings	(509,320	)

On November 30, 2019, the Funds had capital loss carryforwards as follows, subject to regulation.



	Carryforward	Expiration

Sustainable Equity Fund

Short-term loss carryforward	$262,636	Unlimited


	$262,636



	Carryforward	Expiration

Sustainable Bond Fund

Long-term loss carryforward	$459,923	Unlimited


	$459,923

NOTE 6 – Investments

Investment transactions other than short-term investments for the year ended November 30, 2019, were as follows:



	Purchases		Sales

Sustainable Equity		$241,866		$462,563

Sustainable Bond		$10,578,924		$17,826,916

NOTE 7 – Custodian

Under agreements in place with the Trust’s custodian, UMB Bank, custody fees are reduced by credits for cash balances. Such reductions for the period ended November 30, 2019, were as follows:



Custodian Fee Credits

Sustainable Equity			$746

Sustainable Bond			$3,353

NOTE 8 – Subsequent Events

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

The Funds declared the payment of a distribution to be paid on December 19, 2019, to all shareowners of record on December 18, 2019, as follows:



	Dividend Income		Short-Term Capital Gain		Long-Term Capital Gain

Sustainable Equity		$0.06960		$-		$0.06960

Sustainable Bond		$-		$-		$-

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

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of

Saturna Investment Trust

and the Shareholders of Saturna Sustainable Funds

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Saturna Sustainable Equity Fund and Saturna Sustainable Bond Fund, (the “Funds”), each a series of Saturna Investment Trust, including the schedules of investments, as of November 30, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended and the period March 27, 2015 through November 30, 2015, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of November 30, 2019, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights each of the four years in the period then ended and the period March 27, 2015 through November 30, 2015, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Philadelphia, Pennsylvania

January 29, 2020

/s/ Tait, Weller & Baker LLP

Tait, Weller & Baker LLP


Expenses

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

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

Examples

The following examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2019 to November 30, 2019).

Actual Expenses

The first line for each Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. The Funds may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

Hypothetical Example For Comparison Purposes

The second line for each Fund provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees charged by custodians other than Saturna Trust Company (note that Saturna does not charge such fees to shareowners directly on Saturna IRAs, ESAs, or HSAs with the Saturna Sustainable Funds), and charges for extra services such as bank wires.

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



	Beginning Account Value [June 1, 2019]		Ending Account Value [November 30, 2019]		Expenses Paid During Period		Annualized Expense Ratio



Sustainable Equity Fund (SEEFX), Actual		$1,000.00		$1,118.60		$4.14		0.75%

Hypothetical (5% return before expenses)		$1,000.00		$1,021.16		$3.95		0.75%



Sustainable Bond Fund (SEBFX), Actual		$1,000.00		$1,023.10		$3.31		0.65%

Hypothetical (5% return before expenses)		$1,000.00		$1,021.80		$3.30		0.65%

Expenses are equal to annualized expense ratios indicated above (based on the most recent fiscal period of June 1, 2019, through November 30, 2019) multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).


Trustees and Officers		(unaudited)



Name, Address, and Age		Position(s) Held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Independent Trustees

(photo omitted)	Marina E. Adshade (52) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Professor of Economics, University of British Columbia, Vancouver and Simon Fraser University; Author	None

(photo omitted)	Ronald H. Fielding, MA, MBA, CFA (70) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2009); Thirteen	Director, ICI Mutual Insurance Company	Amana Mutual Funds Trust

(photo omitted)	Gary A. Goldfogel, MD (61) 1300 N. State Street Bellingham WA 98225	Chairman (since 2017); Independent Trustee (since 1995); Nine	Medical Examiner (pathologist) Owner, Avocet Environmental Testing (laboratory)	None

(photo omitted)	Jim V. McKinney (58) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Executive Director, Common Threads Northwest; President/CEO, Apple Mountain LLC, consulting and development; US Army Foreign Area Officer—Political/Military Advisor to US Army Central; Senior Defense Official, Defense Attaché, US Embassy Slovenia	None

(photo omitted)	Sarah E.D. Rothenbuhler (51) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	CEO, Birch Equipment (industrial rentals and sales)	None

Interested Trustee

(photo omitted)	Jane K. Carten, MBA (44) 1300 N. State Street Bellingham WA 98225	President, Trustee (since 2017); Nine	President and Director, Saturna Capital Corporation Vice President and Director, Saturna Trust Company President, Saturna Brokerage Services	None


Trustees and Officers (continued)		(unaudited)



Name (Age) and Address		Position(s) held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Officers Who Are Not Trustees

(photo omitted)	Phelps S. McIlvaine (66) 1300 N. State Street Bellingham, WA 98225	Vice President (since 1994); N/A	Vice President, Saturna Capital Corporation Director, Vice President, and former Treasurer Saturna Brokerage Services	N/A

(photo omitted)	Christopher R. Fankhauser (47) 1300 N. State Street Bellingham, WA 98225	Treasurer¹(since 2002); N/A	Chief Operations Officer, Saturna Capital Corporation Vice President and Chief Operations Officer, Saturna Brokerage Services Director, Vice President, and Chief Operations Officer, Saturna Trust Company	N/A

(photo omitted)	Michael E. Lewis (58) 1300 N. State Street Bellingham, WA 98225	Chief Compliance Officer¹(since 2012); N/A	Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds	N/A

(photo omitted)	Jacob A. Stewart (39) 1300 N. State Street Bellingham, WA 98225	Anti-Money Laundering Officer¹(since 2015); N/A	Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services Chief Compliance Officer, Saturna Brokerage Services Bank Secrecy Act Officer, Saturna Trust Company	N/A

(photo omitted)	Nicole Trudeau (40) 1300 N. State Street Bellingham WA 98225	Secretary¹(since 2018) N/A	Chief Legal Officer, Saturna Capital Corporation Former: Counsel, Simpson Thacher & Bartlett LLP; Partner, Stradley Ronon Stevens & Young, LLP; Partner, K&L Gates LLP	N/A

The Trust’s Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds’ website, www.saturnasustainable.com, includes additional information about the Trustees.

On November 30, 2019, the trustees, officers, and their affiliates as a group owned 63.51% and 14.04% of the outstanding shares of Sustainable Equity and Sustainable Bond Funds, respectively.

During the year ended November 30, 2019, the Independent Trustees were each paid by the Trust: (1) $2,000 annual retainer plus $1,000 per board meeting attended (in person or by phone), plus reimbursement of travel expenses; (2) $250 for committee meetings; and (3) $250 per quarter for serving as chairman of the board or any committee.

Mrs. Carten is an Interested Trustee by reason of her positions with the Trust’s adviser (Saturna Capital Corporation) and underwriter (Saturna Brokerage Services), and is the primary manager of the Saturna Sustainable Equity Fund portfolio. She is paid by Saturna Capital a salary, plus a bonus for each month the Saturna Sustainable Equity Fund portfolio earns a 4 or 5 star rating from Morningstar (see www.saturna.com). The officers are paid by Saturna Capital and not the Trust. As of November 30, 2019, all Saturna Capital employees listed above as officers owned shares in one or more of the Saturna Investment Trust funds, with Mrs. Carten owning (directly or indirectly) over $1.4 million.

¹	Holds the same position with Amana Mutual Funds Trust


Renewal of Investment Advisory Contract		(unaudited)

During their meeting of September 17, 2019, the Trustees of Saturna Investment Trust, including those Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940) of the Trust or Saturna Capital (the “Independent Trustees”), discussed the continuance of the Investment Advisory and Administrative Services Agreement (“Agreement”) between the Trust, on behalf of each Fund, and Saturna Capital. In considering the renewal of the Agreement, the Trustees discussed the nature, extent, and quality of the services provided by Saturna Capital to the Trust and each Fund. The Trustees considered Saturna Capital’s specific responsibilities in all aspects of day-to-day management of the Funds as well as the qualifications, experience and responsibilities of the Funds’ portfolio managers and other key personnel at Saturna Capital. The Trustees discussed Saturna Capital’s experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, accounting, marketing, and distribution — all in addition to investment management.

The Trustees considered the investment performance of each Fund, recognizing that because the Funds had commenced investment operations on March 27, 2015, the Funds had a relatively short operating history on which to evaluate performance. The Trustees considered each Fund’s average annual total returns relative to its benchmark for the one- and three-year periods ended August 31, 2019, noting that the Sustainable Equity Fund outperformed its benchmark for the one- and three-year periods and the Sustainable Bond Fund outperformed its benchmark for the three-year period. The Trustees considered comparative information published by Morningstar Inc. (“Morningstar”), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed each Fund’s performance relative to the Fund’s Morningstar category for the one- and three-year periods ended August 31, 2019, noting that the Sustainable Equity Fund had outperformed its Morningstar category average for the one- and three- year periods ended on August 31, 2019, and the Sustainable Bond Fund had underperformed its Morningstar category average for the one-year period and outperformed the category average for the three-year period. The Trustees also considered each Fund’s Morningstar performance ranking (one through five stars), and the Fund’s performance ranking relative to the Fund’s category selected by Lipper, Inc. for the one- and three-year periods ended as of August 31, 2019. The Trustees also noted the high sustainability ratings assigned to the Funds by Morningstar.


Renewal of Investment Advisory Contract (continued)		(unaudited)

The Trustees considered potential benefits to Saturna Capital’s other business lines from acting as investment adviser to the Funds, but also recognized that Saturna Capital’s other business lines benefit the Funds. The Trustees considered whether there are other potential benefits to Saturna Capital in continuing to manage the Funds and the Trustees found that there were no material benefits other than Saturna Capital’s receipt of advisory fees. The Trustees also noted with respect to the Sustainable Equity Fund that Saturna Brokerage Services voluntarily waives brokerage commissions for executing Fund portfolio transactions, resulting in lower transaction costs.

Availability of Portfolio Information

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

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

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

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

Availability of Proxy Voting Information

(1)

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

(2)

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

Householding Policy

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

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

Privacy Statement

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

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Performance Summary (as of December 31, 2019)		(unaudited)


Average Annual Returns (before any taxes paid by shareowners)

	1 Year	3 Year	5 Year	10 Year	15 Year	Expense Ratio

Idaho Tax-Exempt Fund	6.05%	3.59%	2.46%	3.05%	3.23%	0.68%	¹

S&P Idaho Municipal Bond Index	7.04%	4.41%	3.71%	4.74%	4.70%	n/a

“Muni Single State Intermediate” Category Average²	5.69%	3.30%	2.44%	3.20%	3.31%	0.96%

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

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

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

Source: Morningstar December 31, 2019. Morningstar, Inc. is an independent fund performance monitor. Category returns are determined monthly from total returns by Morningstar, by category as determined by Morningstar. Category average expense ratios are determined by Morningstar from prospectus level data reported by funds in the category.

On the cover: An elk in the Sawtooth Mountains.

LOGO


Fellow Shareowners:		January 14, 2020

Idaho thrived in 2019, and the nation noticed. Personal income has grown at a 6% annual rate since 2016 and the state expects this to increase from $80 billion to $90 billion by 2021. Remarkably, state taxpayers are as healthy as the state’s finances.

Population and urban single-family home prices are both rising at some of the fastest rates in the country. While Hewlett Packard may be cutting jobs in Idaho, Amazon is expanding employment. Wheat exports to Taiwan were recently contracted to grow 10% over two years to $576 million.

Idaho State total gross domestic product reached $80.45 billion, a 2.4% increase for the fiscal year. State Reserve Funds grew 10% to $459 million, equaling 8.8% of the General Fund. The Unassigned General Fund balance (for discretionary use) ended the year at $803 million or 3% of the general fund. Idaho’s Combined Net Position (a useful indicator of whether the financial position of the State is improving or deteriorating) grew $550 million or 4.4%. Idaho also improved pension funding slightly (plan fiduciary net position as a % of total pension liabilities) to 82.6%. With so many Idaho bonds directly or indirectly relying on the state’s finances, the Idaho Tax-Exempt Fund pays particular attention to these details.

The 2018 individual and corporate income tax rate reductions, and the 2018 Idaho Child Income Tax Credit contributed to an expected decline in general fund revenue of $227 million. Softer national economic conditions also contributed to general fund revenue coming in below budget. The Idaho Legislature increased appropriations for health and welfare, education, and the Governor’s New Technology initiative, leaving the state’s general fund in a slight budget deficit for the period.

In 2019, Idaho initiated a comprehensive review all state regulations. The result was a significant reduction in the number of regulations. Idaho may now be one of the least regulated states in the nation. The governor is considering making this regulation cull an annual event. This unique editing process adds to the appeal of one of the nation’s most economically competitive states. Cutting personal and corporate taxes as well as regulations appears to be a winning formula practically unique to Idaho.

The American Legislative Exchange Council ranked Idaho second best in the nation in its forward-looking Economic Outlook Rank. Conning’s 2019 “State of the States,” municipal credit report analyzes state reserves, fixed costs, debt burdens, tax collections, population growth, and pension liabilities. This year Idaho ranked third best state municipal credit in the nation citing its “strong balance sheet and generally good economic conditions.”

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

Respectfully,

(photo omitted)

Jane Carten,

President

(photo omitted)

Phelps McIlvaine,

Vice President, Portfolio Manager


*Performance Summary*		(unaudited)


Average Annual Returns (as of November 30, 2019)

	1 Year		5 Year		10 Year		Expense Ratio¹

Idaho Tax-Exempt Fund		7.30%		2.56%		3.01%		0.68%

S&P Idaho Municipal Bond Index		8.03%		3.78%		4.77%		n/a

Growth of $10,000


		Comparison of any mutual fund to a market index must be made bearing in mind that the Index is unmanaged and expense-free. Conversely, the fund will (1) be actively managed; (2) have an objective other than mirroring the index, such as limiting risk; (3) bear transaction and other costs; (4) stand ready to buy and sell its securities to shareowners on a daily basis; and (5) provide a wide range of services. The graph compares $10,000 invested in the Fund on November 30, 2009, to an identical amount invested in the Standard & Poor’s Idaho Municipal Bond Index, a broad-based index of Idaho municipal bond prices. The graph shows that an investment in the Fund would have risen to $13,458 versus $15,934 in the S&P Idaho Municipal Bond Index.

By regulation, the expense ratio for the Fund shown in this table is as stated in the Fund’s most recent prospectus, which is dated March 27, 2019, and incorporates results for the fiscal year ended November 30, 2018. The ratio presented in this table differs from expense ratios shown elsewhere in this report as they represent different fiscal periods.

Fund Objective

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


Portfolio Diversification

	% of Total Net Assets

∎	General Obligation	48.9%
∎	State Education	19.9%
∎	Real Estate	11.1%
∎	Financial Services	5.8%
∎	Pollution Control	2.5%
∎	Medical - Hospitals	2.4%
∎	Health Care Facilities	2.3%
∎	Water Supply	2.1%
∎	Transportation	1.6%
∎	Other assets (net of liabilities)	3.4%


Top 10 Holdings

% of Total Net Assets

Teton Co, ID SCD #401 Driggs (4.00% due 09/15/2035)			4.3%

University of Idaho Revenue (5.00% due 04/01/2032)			3.6%

Canyon Co ID SCD #134 Middleton (4.00% due 09/15/2028)			3.4%

Idaho Bond Bank (4.00% due 09/15/2032)			3.3%

Idaho State Building Authority (5.00% due 09/01/2032)			3.2%

Nez Perce CO ISD #1 Lewiston (5.00% due 09/15/2029)			3.0%

Idaho Fish Wildlife Foundation Rev (5.00% due 12/01/2033)			2.9%

Ada & Canyon Cos ID JSD #2 Meridian (5.00% due 08/15/2032)			2.9%

Boise City Urban Renewal Lease Rev (5.00% due 12/15/2032)			2.7%

Idaho Housing & Finance Rev (3.00% due 07/01/2036)			2.5%


*Discussion of Fund Performance*		(unaudited)

For the 12 months ended November 30, 2019, Idaho Tax- Exempt Fund returned 7.30%, which was higher than the 6.52% average annual return of its Morningstar Muni Single State Intermediate category peer group. For the five years ended November 30, 2019, the Fund provided an annualized total return of 2.56%, compared to the 2.49% annualized return for the Morningstar category peer group. The Fund’s net operating expense ratio was 0.68%. For the year, the Fund’s net assets fell -0.35% to $13.49 million. The Fund’s net asset value per share rose from $5.28 to $5.55. Over the one-year period, the Fund’s outstanding shares declined 5.00% to 2.43 million.

Factors Affecting Past Performance

This rapid policy reversal triggered a “risk on” response in financial markets. The Fed succeeded in steepening the US Treasury yield curve, discounting a flat curve’s recession signal. Reinvigorated investors poured money into financial assets, and especially income producing assets like municipal bonds. Reinvestment risk suddenly re-emerged at the most urgent of investment objectives. Corporate bond spreads narrowed significantly, returning to previous lows in 1998, 2003, and 2018. High-yield spreads narrowed significantly more than investment grade spreads. US 30-yr bond yields established a new low, eclipsing the previous low in 2016.

Looking Forward

Seven of Conning Municipal Credit Research’s 10 strongest state municipal credits are in the Rocky Mountain region. The economy of the greater Rocky Mountain region looks like it will continue to outperform most of the nation. US economic growth and inflation will likely remain relatively benign while progress on Brexit and the US China trade negotiations may relax some anxieties. New monetary and fiscal stimulus from the US, Britain, Japan, and others will be deployed to fund debt burdens, fiscal deficits as well as boost economic growth and inflation in 2020.

In the last decade, monetary and fiscal stimulus policies initially pushed bond yields higher. However, these reflation policies have a mixed record of producing lasting results. Once these policies run their course, inflation and bond yields may fall again, boosting municipal bond prices. Despite these reflation initiatives, negative nominal and real rates will not disappear. Reinvestment risk will remain the most urgent concern for bond investors over the medium to long term. The yield famine will continue.

With yields only slightly higher than recent lows, credit spreads offering historically little additional compensation, and real yields near zero, it is tempting to discount the appeal of municipal bonds in 2020. But municipal bonds still offer another exceptional quality: diversification. As an asset class, municipal bonds demonstrated excellent negative correlation to common stocks on days when stock prices fell during 2019. Higher yields in the next few quarters represent a buying opportunity. For yield starved investors looking for a relatively calm mooring, Idaho municipal bonds may offer the comfort of low asset class correlation when many asset classes offer persistently high valuations and low potential returns.

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

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

Bond Quality Diversification

(unaudited)

% of Total Net Assets

∎

Rated “AAA”

35.7%

LOGO

∎

Rated “AA+”

24.1%

∎

Rated “AA”

5.5%

∎

Rated “AA-”

15.4%

∎

Rated “A+”

9.5%

∎

Rated “A”

3.9%

∎

Not rated

2.5%

∎

Other assets (net of liabilities)

3.4%


Schedule of Investments							As of November 30, 2019

Tax-Exempt Municipal Bonds – 96.6%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Financial Services

Idaho Bond Bank	4.00% due 09/15/2032		$405,000		$439,445		3.3%

Idaho Housing & Finance Rev	3.00% due 07/01/2036		335,000		339,781		2.5%

					779,226		5.8%

General Obligation

Ada & Canyon Cos ID JSD #2 Meridian	5.00% due 08/15/2032		325,000		385,200		2.9%

Ada & Canyon Cos ID JSD #3 Kuna	4.00% due 09/15/2027		100,000		118,479		0.8%

Boise City ID Independent SD	3.00% due 08/01/2038		100,000		101,793		0.8%

Bonneville & Bingham Cos JSD #93	5.00% due 09/15/2031		200,000		220,218		1.6%

Bonneville & Bingham Cos JSD #93	5.00% due 09/15/2029		250,000		275,776		2.0%

Bonneville Co ID SCD #91	4.00% due 09/15/2026		15,000		16,150		0.1%

Bonneville Co ID SCD #91	4.00% due 09/15/2026		35,000		37,632		0.3%

Bonneville Co ID SCD #91	3.75% due 09/15/2032		285,000		305,318		2.3%

Boundary County ID SCD #101	4.00% due 08/15/2021		240,000		241,462		1.8%

Canyon Co ID SCD #134 Middleton	4.00% due 09/15/2028		400,000		454,840		3.4%

Canyon Co ID SCD #135 Notus	3.25% due 09/15/2031		290,000		311,518		2.3%

Canyon Co ID SCD #135 Notus	3.25% due 09/15/2032		170,000		182,208		1.4%

Canyon Co ID SCD #139 Vallivue	5.00% due 09/15/2024		260,000		286,959		2.1%

Cariboo Franklin Bannock JSD #148	3.25% due 09/15/2035		300,000		324,858		2.4%

Cassia Oneida Twin Falls JSD #151	3.375% due 09/15/2034		160,000		167,866		1.2%

Kootenai Co ID SCD # 271 UNREF	4.00% due 09/15/2025		125,000		134,370		1.0%

Kootenai Co ID SCD #271 PREREF	4.00% due 09/15/2025		40,000		43,011		0.3%

Kootenai Co ID SCD #273	4.00% due 08/15/2031		265,000		296,805		2.2%

Kootenai-Shoshone ID Area Libraries	4.25% due 08/01/2021		220,000		221,120		1.6%

Latah Co ID SCD #281 Moscow Ser B	4.00% due 08/15/2027		100,000		109,163		0.8%

Latah Co ID SCD #281 Moscow Ser B	4.00% due 08/15/2028		200,000		217,572		1.6%

Madison Co. Id. SDC #321	5.00% due 09/15/2035		250,000		307,432		2.3%

Owyhee & Canyon Co. # 363 Marsing	4.00% due 09/15/2035		150,000		169,551		1.3%

Teton Co, ID SCD #401 Driggs	4.00% due 09/15/2035		500,000		575,125		4.3%

Twin Falls Co ID SCD #411	4.00% due 09/15/2027		170,000		190,147		1.4%

Twin Falls Co ID SCD #411	4.25% due 09/15/2030		300,000		335,205		2.5%

Twin Falls Co ID SCD #411	4.75% due 09/15/2039		200,000		232,804		1.7%

Twin Falls Co ID SCD #411 Series A	4.25% due 09/15/2031		100,000		111,522		0.8%

Valley & Adams Cos ID JSD #421	3.00% due 08/01/2026		220,000		229,548		1.7%

					6,603,652		48.9%

Health Care Facilities

Idaho Health Faci Auth Hos Rev	5.00% due 12/01/2047		260,000		307,663		2.3%

					307,663		2.3%

Medical/Hospitals

Idaho Health Rev Trinity Health Grp	3.25% due 12/01/2028		300,000		320,085		2.4%

					320,085		2.4%

Pollution Control

Idaho Bond Bank	4.00% due 09/15/2033		135,000		154,933		1.1%

Idaho Bond Bank Authority	4.30% due 09/01/2022		20,000		20,048		0.1%

Idaho Bond Bank Authority	4.00% due 09/15/2032		130,000		149,524		1.1%

Idaho Bond Bank Authority	4.125% due 09/15/2023		20,000		20,045		0.2%

					344,550		2.5%

Continued on next page.




6	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.


Schedule of Investments						As of November 30, 2019

Tax-Exempt Municipal Bonds – 96.6%	Coupon / Maturity	Face Amount		Market Value		Percentage of Assets

Real Estate

Boise City Urban Renewal Lease Rev	5.00% due 12/15/2032		300,000		355,929		2.7%

Idaho Fish Wildlife Foundation Rev	5.00% due 12/01/2033		320,000		397,815		2.9%

Idaho State Building Authority	5.00% due 09/01/2031		200,000		218,412		1.6%

Idaho State Building Authority	5.00% due 09/01/2032		400,000		436,484		3.2%

Post Falls ID LID SPA	5.00% due 05/01/2021		90,000		90,438		0.7%

					1,499,078		11.1%

State Education

Boise State University ID Revenue	5.00% due 04/01/2028		125,000		146,531		1.1%

Boise State University ID Revenue	5.00% due 04/01/2032		160,000		189,946		1.4%

Idaho State University	4.00% due 04/01/2027		170,000		194,698		1.5%

Idaho State University	4.00% due 04/01/2030		245,000		275,338		2.1%

Idaho State University Revenue	3.00% due 04/01/2031		250,000		262,618		2.0%

Idaho State University Revenue	3.00% due 04/01/2032		160,000		167,410		1.2%

Nez Perce CO ISD #1 Lewiston	5.00% due 09/15/2029		330,000		408,012		3.0%

North Idaho College Dormitory Rev	4.00% due 11/01/2030		285,000		316,381		2.3%

University of Idaho Revenue	5.00% due 04/01/2028		225,000		227,702		1.7%

University of Idaho Revenue	5.00% due 04/01/2032		455,000		490,708		3.6%

					2,679,344		19.9%

Transportation

Boise ID Airport Park Fac Rev	3.00% due 09/01/2028		210,000		214,299		1.6%

					214,299		1.6%

Water Supply

Payette Lakes Rec Wtr & Swr Rev	4.00% due 08/01/2034		$255,000		284,720		2.1%

					284,720		2.1%



Total investments	(Cost $12,418,803)				13,032,617		96.6%

Other assets (net of liabilities)					454,108		3.4%

Total net assets					$13,486,725		100.0%




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	7

Statement of Assets and Liabilities


As of November 30, 2019



Assets

Investments in securities, at value (Cost $12,418,803)			$13,032,617

Cash			340,897

Interest receivable			127,427

Other assets			4,464

Receivable for Fund shares sold			250


Total assets			13,505,655


Liabilities

Accrued advisory fees			5,514

Accrued audit expenses			4,174

Distributions payable			3,442

Payable for Fund shares redeemed			2,991

Accrued insurance expenses			912

Accrued registration/filling fees			687

Accrued Chief Compliance Officer expenses			583

Accrued other operating expenses			314

Accrued trustee expenses			222

Accrued retirement plan custody fee			91


Total liabilities			18,930


Net assets			$13,486,725



Analysis of net assets

Paid-in capital (unlimited shares authorized, without par value)			$12,960,960

Total distributable earnings			525,765


Net assets applicable to Fund shares outstanding			$13,486,725


Fund shares outstanding			2,431,502

Net asset value, offering and redemption price per share			$5.55

Statement of Operations


Year ended November 30, 2019



Investment income

Interest income	$369,367


Total investment income	369,367


Expenses

Investment advisory fees	67,172

Audit fees	6,621

Chief Compliance Officer expenses	3,902

Trustee fees	3,163

Filing and registration fees	3,125

Legal fees	3,087

Transfer agent fees	1,890

Other expenses	1,859

Printing and postage expenses	995

Custodian fees	544

Retirement plan custodial fees	99


Total gross expenses	92,457


Less transfer agent fees waived	(1,890	)

Less custodian fee credits	(510	)


Net expenses	90,057


Net investment income	$279,310





Net realized gain from investments	$15,726

Net increase in unrealized appreciation on investments	641,062


Net gain on investments	$656,788



Net increase in net assets resulting from operations	$936,098




8	November 30, 2019	Annual Report	The accompanying notes are an integral part of these financial statements.


Statement of Changes of Net Assets	Year ended November 30, 2019		Year ended November 30, 2018

Decrease in net assets from operations

From operations

Net investment income	$279,310		$361,335

Net realized gain (loss) on investment	15,726		(44,849	)

Net increase (decrease) in unrealized appreciation	641,062		(232,107	)


Net increase in net assets	936,098		84,379




Distributions to shareholders	(278,541	)	(361,335	)



Capital share transactions

Proceeds from sales of shares	1,163,543		3,147,317

Value of shares issued in reinvestment of dividends	224,410		300,919

Cost of shares redeemed	(2,113,103	)	(7,091,173	)


Total capital share transactions	(725,150	)	(3,642,937	)


Total decrease in net assets	(67,593	)	(3,919,893	)



Net assets

Beginning of year	13,554,318		17,474,211

End of year	$13,486,725		$13,554,318



Shares of the Fund sold and redeemed

Number of shares sold	212,460		591,416

Number of shares issued in reinvestment of dividends	40,958		56,625

Number of shares redeemed	(386,786	)	(1,337,291	)


Net decrease in number of shares outstanding	(133,368	)	(689,250	)


Financial Highlights	For the year ended November 30,

Selected data per share of outstanding capital stock throughout each year:	2019		2018		2017		2016		2015

Net asset value at beginning of year	$5.28		$5.37		$5.29		$5.48		$5.51

Income from investment operations

Net investment income	0.11		0.12		0.13		0.14		0.15

Net gains (losses) on securities (both realized and unrealized)	0.27		(0.09	)	0.08		(0.19	)	(0.03	)


Total from investment operations	0.38		0.03		0.21		(0.05	)	0.12


Less distributions

Dividends (from net investment income)	(0.11	)	(0.12	)	(0.13	)	(0.14	)	(0.15	)

Distributions (from capital gains)	-		-		-		0.00	^A	0.00	^A


Total distributions	(0.11	)	(0.12	)	(0.13	)	(0.14	)	(0.15	)




Net asset value at end of year	$5.55		$5.28		$5.37		$5.29		$5.48


Total return	7.30%		0.51%		3.90%		(0.95	)%	2.21%



Ratios / supplemental data

Net assets ($000), end of year	$13,487		$13,554		$17,474		$17,997		$17,420

Ratio of expenses to average net assets

Before transfer agent fee waiver and custodian fee credits	0.69%		0.68%		0.67%		0.67%		0.67%

After transfer agent fee waiver	0.67%		0.67%		0.66%		0.66%		0.66%

After transfer agent fee waiver and custodian fee credits	0.67%		0.67%		0.65%		0.65%		0.66%

Ratio of net investment income after fee waiver and custodian credits to average net assets	2.07%		2.20%		2.33%		2.54%		2.66%

Portfolio turnover rate	4%		13%		20%		15%		7%

^A	Amount is less than $0.01




The accompanying notes are an integral part of these financial statements.	Annual Report	November 30, 2019	9

Notes to Financial Statements

Note 1 – Organization

Saturna Investment Trust (the “Trust”) was established under Washington State Law as a business trust on February 20, 1987. The Trust is registered as an open-end, diversified management company under the Investment Company Act of 1940, as amended. In addition to Idaho Tax-Exempt Fund (the “Fund”), eight portfolios have been created to date: Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Core Fund, Sextant Global High Income Fund, Sextant Growth Fund, Sextant International Fund, Saturna Sustainable Equity Fund, and Saturna Sustainable Bond Fund (each, a “Fund”, and collectively, the “Funds”). The other eight portfolios are distributed through separate prospectuses and the results of those Funds are contained in separate reports.

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

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

Investment risks:

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

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

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

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

Note 2 – Significant Accounting Policies

Security valuation:

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

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

Share valuation:

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

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

Fair value measurements:

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

Level 1 —

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

Level 2 —

Level 3 —

Notes to Financial Statements (continued)

The following table is a summary of the inputs used as of November 30, 2019, in valuing the Fund’s investments carried at value.



Fair Value Inputs	Level 1 Quoted Price		Level 2 Significant Observable Input		Level 3 Significant Unobservable Input		Total

Municipal Bonds¹		$-		$13,032,617		$-		$13,032,617

Total Assets		$-		$13,032,617		$-		$13,032,617

¹	See Schedule of Investments for industry breakout.

During the period ended November 30, 2019, the Fund had no transfers among Levels 1, 2, or 3.

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

Income taxes:

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

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2016 – 2018), or expected to be taken in the Fund’s 2019 tax return. The Fund identifies its major tax jurisdiction as US federal and foreign jurisdictions where the Fund makes significant investments; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Reclassification of capital accounts:

As of November 30, 2019, there were no reclassifications to the capital accounts.

Distributions to shareowners:

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

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

Use of estimates:

Other:

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

Recent accounting pronouncements:

In August 2018, FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820: Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. ASU 2018-13 will require the need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements and the changes in unrealized gains and losses for recurring Level 3 fair value measurements. ASU 2018-13 will also require that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and allows for early adoption of either the entire standard or only the provisions that eliminate or modify the requirements. Management has elected to adopt early the provisions that eliminate the disclosure requirements. Management is still currently evaluating the impact of applying the rest of the guidance.

Notes to Financial Statements (continued)

Note 3 – Transactions with Affiliated Persons

Under a contract approved by shareowners on September 28, 1995 and reviewed annually by the Board of Trustees, Saturna Capital Corporation provides investment advisory services and certain other administrative and distribution services to conduct the Fund’s business. For such services, the Fund pays an annual fee equal to 0.50% of its average daily net assets. For the fiscal period ended November 30, 2019, the Fund incurred advisory fee expenses of $67,172. Expenses incurred by the Trust on behalf of the Fund (e.g., legal fees) are allocated to the Fund and the other Funds of the Trust on the basis of relative daily average net assets.

Saturna Capital also acts as transfer agent for the Fund, for which it did not receive any compensation during the fiscal period ended November 30, 2019. Saturna Capital has voluntarily elected to waive the transfer agent fee through November 30, 2019, to reduce the Fund’s operating expenses. Such fees, had they been charged, would have totaled $1,890.

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

Saturna Trust Company (“STC”), a subsidiary of Saturna Capital, acts as a retirement plan custodian for Fund shareowners. For the fiscal period ended November 30, 2019, the Fund incurred retirement plan custodial fees of $99.

Mrs. Jane Carten serves as a trustee and president of the Trust. She is also a director and the president of Saturna Capital and Saturna Trust Company. She is not compensated by the Trust. For the fiscal year ended November 30, 2019, the Trust paid trustee compensation expenses of $31,500 which is included in the $44,545 of total expenses paid for the independent Trustees. The Fund’s allocation of these expenses was $3,163.

The officers of the Trust are paid by Saturna Capital, not the Trust, except the Chief Compliance Officer, who is partially compensated by the Trust. For the period ended November 30, 2019, the Fund’s allocation of these expenses was $3,902.

On November 30, 2019, the trustees, officers, and their immediate families as a group directly or indirectly owned 17.98% of the outstanding shares of the Fund.

Note 4 – Distributions to Shareowners

The tax characteristics of distributions paid during the fiscal periods ended November 30, 2019, and November 30, 2018, were as follows:



	November 30, 2019		November 30, 2018

Tax-exempt income		$277,251		$360,134

Taxable income		$1,290		$1,201

Note 5 – Federal Income Taxes

The cost basis of investments for federal income tax purposes at November 30, 2019 was as follows:



Cost of investments	$12,418,803


Gross unrealized appreciation	$615,218

Gross unrealized depreciation	$(1,404	)


Net unrealized appreciation	$613,814

As of November 30, 2019, the components of distributable earnings on a tax basis were as follows:



Undistributed tax exempt income	$3,820


Tax-exempt accumulated earnings	$3,820

Accumulated capital loss	$(91,869	)

Unrealized appreciation	$613,814


Total accumulated earnings	$525,765

As of November 30, 2019, the Fund had capital loss carryforwards as follows, subject to regulation.



	Carryforward		Expiration

Short-term loss carryforward	$(55,441	)	Unlimited

Long-term loss carryforward	$(36,428	)	Unlimited

	$(91,869	)

Note 6 – Investments

During the period ended November 30, 2019, the Fund purchased $570,167 of securities and sold/matured $1,112,441 of securities.

Note 7 – Custodian

Under the agreement in place with UMB Bank custody fees are reduced by credits for cash balances. Such reduction for the period ended November 30, 2019, amounted to $510.

Note 8 – Subsequent Events

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

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

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of

Saturna Investment Trust

and the Shareholders of Idaho Tax-Exempt Fund,

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of Idaho Tax-Exempt Fund, (the “Fund”), a series of Saturna Investment Trust, including the schedule of investments, as of November 30, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the US federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 1997.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Philadelphia, Pennsylvania

January 29, 2020

/s/ Tait, Weller & Baker LLP

Tait, Weller & Baker LLP


Expenses		(unaudited)

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

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

Example

The following example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2019, to November 30, 2019).

Actual Expenses

The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. The Fund may charge for extra services (such as domestic bank wires, international bank wires, or overnight courier delivery of redemption checks) rendered on request, which you may need to estimate to determine your total expenses.

Hypothetical Example for Comparison Purposes

The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of other mutual funds. You may wish to add other fees that are not included in the expenses shown in the table, such as charges for extra services like bank wires.

Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Idaho Tax-Exempt Fund does not charge any such transactional costs). Therefore, the “Hypothetical” line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.



	Beginning Account Value [June 1, 2019]		Ending Account Value [November 30, 2019]		Expenses Paid During Period¹		Annualized Expense Ratio

Actual		$1,000.00		$1,021.10		$3.51		0.69%

Hypothetical (5% return before expenses)		$1,000.00		$1,021.59		$3.51		0.69%

¹	Expenses are equal to Idaho Tax-Exempt Bond Fund’s annualized expense ratio of 0.69% (based on the most recent semi-annual period of June 1, 2019 through November 30, 2019) multiplied by the average account value over the period multiplied by 183/365 (to reflect the one-half year period).


Trustees and Officers		(unaudited)


Name, Address, and Age		Position(s) Held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Independent Trustees

(photo omitted)	Marina E. Adshade (52) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Professor of Economics, University of British Columbia, Vancouver and Simon Fraser University; Author	None

(photo omitted)	Ronald H. Fielding, MA, MBA, CFA (70) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2009); Thirteen	Director, ICI Mutual Insurance Company	Amana Mutual Funds Trust

(photo omitted)	Gary A. Goldfogel, MD (61) 1300 N. State Street Bellingham WA 98225	Chairman (since 2017); Independent Trustee (since 1995); Nine	Medical Examiner (pathologist) Owner, Avocet Environmental Testing (laboratory)	None

(photo omitted)	Jim V. McKinney (58) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	Executive Director, Common Threads Northwest; President/CEO, Apple Mountain LLC, consulting and development; US Army Foreign Area Officer—Political/Military Advisor to US Army Central; Senior Defense Official, Defense Attaché, US Embassy Slovenia	None

(photo omitted)	Sarah E.D. Rothenbuhler (51) 1300 N. State Street Bellingham WA 98225	Independent Trustee (since 2017); Nine	CEO, Birch Equipment (industrial rentals and sales)	None

Interested Trustee

(photo omitted)	Jane K. Carten, MBA (44) 1300 N. State Street Bellingham WA 98225	President, Trustee (since 2017); Nine	President and Director, Saturna Capital Corporation Vice President and Director, Saturna Trust Company President, Saturna Brokerage Services	None


Trustees and Officers (continued)		(unaudited)


Name (Age) and Address		Position(s) held with Trust and Number of Saturna Fund Portfolios Overseen	Principal occupation(s) during past 5 years, including Directorships	Other Directorships held by Trustee

Officers Who Are Not Trustees

(photo omitted)	Phelps S. McIlvaine (66) 1300 N. State Street Bellingham, WA 98225	Vice President (since 1994); N/A	Vice President, Saturna Capital Corporation Director, Vice President, and former Treasurer Saturna Brokerage Services	N/A

(photo omitted)	Christopher R. Fankhauser (47) 1300 N. State Street Bellingham, WA 98225	Treasurer¹(since 2002); N/A	Chief Operations Officer, Saturna Capital Corporation Vice President and Chief Operations Officer, Saturna Brokerage Services Director, Vice President, and Chief Operations Officer, Saturna Trust Company	N/A

(photo omitted)	Michael E. Lewis (58) 1300 N. State Street Bellingham, WA 98225	Chief Compliance Officer¹ (since 2012); N/A	Chief Compliance Officer, Saturna Capital, Saturna Trust Company, and Affiliated Funds	N/A

(photo omitted)	Jacob A. Stewart (39) 1300 N. State Street Bellingham, WA 98225	Anti-Money Laundering Officer¹ (since 2015); N/A	Anti-Money Laundering Officer, Saturna Capital Corporation, Saturna Brokerage Services Chief Compliance Officer, Saturna Brokerage Services Bank Secrecy Act Officer, Saturna Trust Company	N/A

(photo omitted)	Nicole Trudeau (40) 1300 N. State Street Bellingham WA 98225	Secretary¹ (since 2018) N/A	Chief Legal Officer, Saturna Capital Corporation Former: Counsel, Simpson Thacher & Bartlett LLP; Partner, Stradley Ronon Stevens & Young, LLP; Partner, K&L Gates LLP	N/A

The Trust’s Statement of Additional Information, available without charge upon request by calling Saturna Capital at 1-800-728-8762 and on the Funds’ website, www.idahotaxexemptfund.com, includes additional information about the Trustees.

On November 30, 2019 the Trustees, officers, and their related accounts as a group owned 17.98% of the outstanding shares of the Fund.

¹	Holds the same postion with Amana Mututal Funds Trust


Renewal of Investment Advisory Contract		(unaudited)

During their meeting of September 17, 2019, the Trustees of Saturna Investment Trust, including those Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940) of the Trust or Saturna Capital (the “Independent Trustees”), discussed the continuance of the Investment Advisory and Administrative Services Agreement (“Agreement”) between the Trust, on behalf of the Fund, and Saturna Capital. In considering the renewal of the Agreement, the Trustees discussed the nature, extent, and quality of the services provided by Saturna Capital to the Trust and the Fund. The Trustees considered Saturna Capital’s specific responsibilities in all aspects of day-to-day management of the Fund as well as the qualifications, experience and responsibilities of the Fund’s portfolio manager and other key personnel at Saturna Capital. The Trustees discussed Saturna Capital’s experience, ability, and commitment to quality service through performing internally such functions as shareowner servicing, administration, accounting, marketing, and distribution — all in addition to investment management.

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

The Trustees considered the investment performance of the Fund over time, including the Fund’s average annual total returns relative to its benchmark for the one-, three-, five-, ten-, and fifteen-year periods, all as of August 31, 2019. The Trustees also considered comparative information published by Morningstar Inc. (“Morningstar”), an independent data service provider that, among other things, ranks mutual fund performance within categories comprised of similarly managed funds. The Trustees considered and discussed the Fund’s performance relative to its Morningstar category for the one-, three-, five-, ten-, and fifteen-year periods ended August 31, 2019. The Trustees also considered the Fund’s Morningstar performance ranking (three stars), and the Fund’s performance ranking relative to the Fund’s category selected by Lipper, Inc. for the one-, three-, five- and ten-year periods ended as of August 31, 2019.

With respect to long-term (10- and 15-year) performance, the Trustees found that the average annual total return of the Fund for the 10- and 15-year periods ended on August 31, 2019, was below the Morningstar category average for the same periods. The Trustees also considered the short- and medium-term performance of the Fund, noting that the Fund’s average annual total return for the five-year period ended on August 31, 2019 was below its Morningstar category average, while average annual total return for the one- and three-year periods outperformed its Morningstar category average.

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

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

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

The Trustees recognized that the Fund remains relatively small and there have not been opportunities to consider economies of scale. The Trustees noted Saturna Capital’s commitment to continue operating the Fund and the costs undertaken by Saturna Capital.

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

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

Continued on next page.




Annual Report	November 30, 2019	17


Renewal of Investment Advisory Contract (continued)		(unaudited)

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

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

Availability of Portfolio Information

(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 Form N-Q is available on the SEC’s website at www.sec.gov and at www.idahotaxexemptfund.com.

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

(4)	The Fund makes a complete schedule of portfolio holdings after the end of each month available to investors at www.idahotaxexemptfund.com.

Availability of Proxy Voting Information

(1)

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

(2)

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

Householding Policy

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

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

Privacy Statement

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

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

LOGO

Item 2. Code of Ethics.

Registrant has adopted a code of ethics and is included with this submission as Exhibit (a). It may also be found on Registrant's website at https://www.saturna.com/code-ethics

Item 3. Audit Committee Financial Expert.

(a)(1)(i) The Trust has an audit committee financial expert serving on its audit committee.

(a)(2)(ii) As of November 30, 2014, Mr. Ronald H. Fielding, an independent Trustee (as defined for investment companies), was deemed qualified and agreed to serve.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees

For the fiscal years ending November 30, 2019, and 2018, the aggregate audit fees billed for professional services rendered by the principal accountant were $113,500 and $113,500, respectively.

(b) Audit-Related Fees

There were no fees billed by the principal accountant for assurance and related services that were not included under paragraph (a) for the fiscal years ending November 30, 2019, and 2018.

(c) Tax Fees

For the fiscal years ending November 30, 2019, and 2018, the aggregate tax fees billed for professional services rendered by the principal accountant were $25,700 and $25,700, respectively. Service includes preparation of the Funds' federal and state income tax returns.

(d) All Other Fees

There were no other fees billed by the principal accountant for the fiscal years ending November 30, 2019, and 2018.

(e)(1) Audit & Compliance Committee Pre-Approval Policies and Procedures

The following is an excerpt from the Saturna Investment Trust Audit & Compliance Committee Charter:

C. Oversight of Independent Auditors

3. Pre-approval of Audit and Non-Audit Services. Except as provided below, the Committee's prior approval is necessary for the engagement of the independent auditors to provide any audit or non-audit services for the Trust and any non-audit services for any entity controlling, controlled by or under common control with Saturna that provides ongoing services to the Trust (Saturna and each such entity, an "Adviser Affiliate") where the engagement relates directly to the operations or financial reporting of the Trust. Non-audit services that qualify under the de minimis exception described in the Securities Exchange Act of 1934, as amended, and applicable rules thereunder, that were not pre-approved by the Committee, must be approved by the Committee prior to the completion of the audit. Pre-approval by the Committee is not required for engagements entered into pursuant to (a) pre-approval policies and procedures established by the Committee, or (b) pre-approval granted by one or more members of the Committee to whom, or by a subcommittee to which, the Committee has delegated pre-approval authority, provided in either case, that the Committee is informed of each such service at its next regular meeting.

(e) (2) Percentages of Services

One hundred percent of the services described in each of paragraphs (b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Aggregate Non-Audit Fees

The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant are shown above in the response to Item 4(b), (c) and (d) above.

(1) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant's investment adviser, Saturna Capital Corporation ("Saturna"), for the fiscal years ended November 30, 2019, and 2018 were:

Fiscal Year Ended

November 2019

November 2018

All other fees:

$23,000

$23,000

The fees listed above consist of fees paid by Saturna to the Registrant's principal accountant for its review and report on Saturna's internal transfer agency control procedures and Saturna's custody control procedures.

(2) The aggregate non-audit fees billed by the principal accountant for services rendered to entities controlling, controlled by, or under common control with Saturna, for the fiscal years ended November 30, 2019, and 2018 were:

Fiscal Year Ended

November 2019

November 2018

All other fees:

None

None

(h) Registrant's Audit Committee

The Registrant's Audit Committee has considered the provision of non-audit services that were rendered to Saturna, and any entity controlling, controlled by or under common control with Saturna that provides ongoing services to the Registrant, that were not pre-approved pursuant to Rule 2-01 (c)(7)(ii) of Regulation S-X and has determined that the provision of such services is compatible with maintaining the independence of the Registrant's principal accountant.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On December 17, 2019, Mrs. Jane Carten (President) and Mr. Christopher Fankhauser (Treasurer), reviewed the internal control procedures for Saturna Investment Trust and found them reasonable and adequate.

(b) No change.

Item 12. Exhibits

Exhibits included with this filing:

(a)(1) Code of Ethics.

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SATURNA INVESTMENT TRUST

By:

/s/ Jane Carten, President
Signature and Title

Jane Carten, President
Printed name and Title

January 29, 2020
Date

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Jane Carten, President
Signature and Title

Jane Carten, President
Printed name and Title

January 29, 2020
Date

By:

/s/ Christopher Fankhauser, Treasurer
Signature and Title

Christopher Fankhauser, Treasurer
Printed name and Title

January 29, 2020
Date

# # #

	Fiscal Year Ended
	November 2019	November 2018
All other fees:	$23,000	$23,000