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Form N-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-05071

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

1300 N. State Street
Bellingham, Washington 98225-4730

(Address of Principal Executive Offices, including ZIP Code)

Nicholas F. Kaiser
1300 N. State Street
Bellingham, Washington 98225-4730
(Name and Address of Agent for Service)

Registrant’s Telephone Number (360) 734-9900

Date of fiscal year end: November 30, 2016
Date of reporting period: February 29, 2016

 

 

Item 1. Schedule of Investments

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

Saturna Investment Trust, Sextant Short-Term Bond Fund

Corporate Bonds — 81.6% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Communications  
 
    America Movil 2.375% due 09/08/2016 $250,000 $251,085 3.3%
 
  250,000 251,085 3.3%
 
Consumer Discretionary  
 
    American Honda 1.50% due 09/11/2017 250,000 250,333 3.3%
    Cintas No. 2 6.125% due 12/01/2017 270,000 290,629 3.8%
    International Game Technology 7.50% due 06/15/2019 250,000 263,750 3.4%
    Toyota Motor Credit 1.25% due 10/05/2017 226,000 226,120 2.9%
 
  996,000 1,030,832 13.4%
 
Energy  
 
    Enbridge (Pipeline) 5.60% due 04/01/2017 200,000 199,998 2.6%
    Petrobras International Finance 6.125% due 10/06/2016 250,000 251,250 3.3%
    Ultramar Diamond Shamrock 7.20% due 10/15/2017 189,000 201,691 2.6%
 
  639,000 652,939 8.5%
 
Financials  
 
    BNP Paribas 2.375% due 09/14/2017 250,000 252,607 3.3%
    Broadridge Financial 6.125% due 06/01/2017 275,000 289,044 3.8%
    General Electric Capital 5.625% due 09/15/2017 250,000 266,554 3.5%
    Jeffries Group 8.50% due 07/15/2019 265,000 299,658 3.9%
    Murray Street Trust 1 – Goldman Sachs 4.647% due 03/09/2017 300,000 306,925 4.0%
 
  1,340,000 1,414,788 18.5%
 
Health Care  
 
    AbbVie Inc 2.50% due 05/14/2020 250,000 250,286 3.3%
    Danaher Corp 5.40% due 03/01/2019 150,000 165,866 2.1%
 
  400,000 416,152 5.4%
 
Industrials  
 
    ABB Finance 1.625% due 05/08/2017 250,000 250,917 3.3%
    Burlington Northern Santa Fe 5.65% due 05/01/2017 200,000 209,519 2.7%
    Union Pacific Corp 7.875% due 01/15/2019 127,000 147,253 1.9%
 
  577,000 607,689 7.9%
 
Materials  
 
    Air Products & Chemicals 1.20% due 10/15/2017 250,000 249,111 3.2%
    Potash 3.25% due 12/01/2017 250,000 254,946 3.3%
    Sherwin Williams 1.35% due 12/15/2017 250,000 249,556 3.3%
 
  750,000 753,613 9.8%
 
Technology  
 
    Lexmark 6.65% due 06/01/2018 275,000 290,502 3.8%
    Oracle 5.75% due 04/15/2018 250,000 273,043 3.6%
 
  525,000 563,545 7.4%
 
Utilities  
 
    Georgia Power 5.70% due 06/01/2017 250,000 262,589 3.4%
    LaClede Gas 2.00% due 08/15/2018 300,000 301,641 4.0%
 
  550,000 564,230 7.4%
 
Total Corporate Bonds   6,027,000 6,254,873 81.6%
 
Government Bonds — 12.5% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
United States Treasury Notes  
 
    United States Treasury Note 2.50% due 06/30/2017 $143,000 $146,296 1.9%
    United States Treasury Note 2.75% due 12/31/2017 142,000 147,003 1.9%
    United States Treasury Note 2.625% due 01/31/2018 141,000 145,880 1.9%
    United States Treasury Note 2.25% due 07/31/2018 300,000 310,254 4.0%
    United States Treasury Note 2.75% due 02/15/2019 200,000 210,656 2.8%
 
  926,000 960,089 12.5%
 
Total investments (Cost = $7,242,801) $6,953,000 7,214,962 94.1%
Other assets (net of liabilities)   455,384 5.9%
Total net assets   $7,670,346 100.0%

 

Saturna Investment Trust, Sextant Bond Income Fund

Corporate Bonds — 54.4% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Consumer Discretionary  
 
    VF Corp 6.00% due 10/15/2033 $200,000 $246,732 3.0%
 
  200,000 246,732 3.0%
 
Consumer Staples  
 
    Unilever Capital Corp 5.90% due 11/15/2032 200,000 261,355 3.2%
 
  200,000 261,355 3.2%
 
Energy  
 
    Baker Hughes 6.875% due 01/15/2029 100,000 113,792 1.4%
    Canadian Natural Resources 6.45% due 06/30/2033 225,000 170,901 2.1%
    ConocoPhillips 6.00% due 01/15/2020 150,000 157,681 1.9%
 
  475,000 442,374 5.4%
 
Financials  
 
    Affiliated Managers Group 3.50% due 08/01/2025 250,000 245,715 3.0%
    Cincinnati Financial Corp 6.92% due 5/15/2028 250,000 320,410 3.9%
    UBS AG Stamford CT 7.75% due 09/01/2026 200,000 269,111 3.3%
 
  700,000 835,236 10.2%
 
Health Care  
 
    Becton Dickinson 6.70% due 08/01/2028 240,000 304,933 3.7%
    Johnson and Johnson 4.95% due 05/15/2033 226,000 271,534 3.3%
    Merck & Co. (Schering) 6.50% due 12/01/2033 215,000 282,926 3.5%
    Pharmacia 6.50% due 12/01/2018 100,000 112,622 1.4%
    Teva Pharmaceutical 3.65% due 11/10/2021 250,000 257,393 3.2%
 
  1,031,000 1,229,408 15.1%
 
Industrials  
 
    Boeing 6.125% due 02/15/2033 215,000 275,552 3.4%
    Deere & Co. 8.10% due 05/15/2030 95,000 136,326 1.7%
 
  310,000 411,878 5.1%
 
Materials  
 
    Air Products & Chemicals 8.75% due 04/15/2021 50,000 61,777 0.8%
 
  50,000 61,777 0.8%
 
Technology  
 
    EMC 3.375% due 06/01/2023 330,000 270,512 3.3%
 
  330,000 270,512 3.3%
 
Utilities  
 
    Entergy Louisiana 5.40% due 11/01/2024 200,000 234,746 2.9%
    Florida Power & Light 5.95% due 10/01/2033 100,000 128,723 1.6%
    Puget Sound Energy 7.02% due 12/01/2027 237,000 307,981 3.8%
 
  537,000 671,450 8.3%
 
Total Coporate Bonds   3,833,000 4,430,722 54.4%
 
Government Bonds — 16.9% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Foreign Government Bonds  
 
    Quebec Canada Yankee 7.125% due 02/09/2024 $175,000 $230,723 2.8%
 
  175,000 230,723 2.8%
 
United States Treasury Bonds  
 
    United States Treasury Bond 6.25% due 05/15/2030 225,000 343,125 4.2%
    United States Treasury Bond 5.375% due 02/15/2031 400,000 573,062 7.0%
 
  625,000 916,187 11.2%
 
United States Treasury Notes  
 
    United States Treasury Note 5.25% due 02/15/2029 170,000 233,624 2.9%
 
  170,000 233,624 2.9%
 
Total Government Bonds   970,000 1,380,534 16.9%
 
Municipal Bonds — 24.2% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
General Obligation  
 
    Blaine Co. ID SCD #61 Hailey 5.25% due 08/01/2020 $250,000 $280,832 3.4%
    Dell Rapids SCD 49-3 6.257% due 01/15/2030 200,000 220,774 2.7%
    Dupage Co. IL SCD #502 5.50% due 01/01/2026 150,000 164,881 2.0%
    Idaho Hsg. & Fin. GARVEE BAB A-2 5.379% due 07/15/2020 180,000 200,403 2.5%
    Milan Co. MI Area Schools 6.45% due 05/01/2024 150,000 170,560 2.1%
    San Marcos Texas ULTD GO BAB 6.028% due 08/15/2030 200,000 227,394 2.8%
    Springville UT GO BAB 5.30% due 05/01/2031 240,000 256,054 3.1%
 
  1,370,000 1,520,898 18.6%
 
Revenue  
 
    Johnson Co. KS Bldg. Ls./Pr. Rev. BAB 4.60% due 09/01/2026 250,000 259,382 3.2%
    Oklahoma City Fin. Auth. Ed. Lease Rev. 6.60% due 09/01/2022 160,000 194,994 2.4%
 
  410,000 454,376 5.6%
 
Total Municipal Bonds   1,780,000 1,975,274 24.2%
 
Total investments (Cost = $7,503,394) $6,583,000 7,786,530 95.5%
Other assets (net of liabilities)   369,706 4.5%
Total net assets   $8,156,236 100.0%

 

Saturna Investment Trust, Sextant Core Fund

Common Stocks — 58.8% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Telecom Carriers
    SK Telecom ADR 6,000 $124,920 South Korea 1.5%
    Telenor 3,500 52,160 Norway 0.7%
 
  177,080   2.2%
 
Consumer Discretionary  
 
Airlines
    Delta Air Lines 1,500 72,360 United States 0.9%
 
Automobiles
    Bayerische Motoren Werke 500 40,571 Germany 0.5%
 
Home Products Stores
    Lowe's 3,000 202,590 United States 2.5%
 
Jewelry & Watch Stores
    Pandora A/S 600 75,654 Denmark 0.9%
 
  391,175   4.8%
 
Consumer Staples  
 
Beverages
    Ambev ADR 15,000 65,100 Brazil 0.8%
    PepsiCo 1,750 171,185 United States 2.1%
  236,285   2.9%
 
Household Products
    Procter & Gamble 2,000 160,580 United States 2.0%
    Unilever ADS 2,500 107,050 United Kingdom 1.3%
  267,630   3.3%
 
Packaged Food
    Nestle' ADS 3,000 209,580 Switzerland 2.5%
 
  713,495   8.7%
 
Energy  
 
Exploration & Production
    ConocoPhillips 2,000 67,660 United States 0.8%
    Devon Energy 2,300 45,264 United States 0.6%
  112,924   1.4%
 
Integrated Oils
    Statoil ADS 6,003 87,404 Norway 1.1%
    Total ADS 2,100 93,891 France 1.1%
  181,295   2.2%
 
Midstream – Oil & Gas
    Williams Companies 8,500 135,915 United States 1.7%
 
Refining & Marketing
    Phillips 66 1,500 119,085 United States 1.4%
 
  549,219   6.7%
 
Financials  
 
Banks
    PNC Bank 1,500 121,965 United States 1.5%
    Skandinaviska Enskilda Banken 15,000 146,095 Sweden 1.8%
    Toronto-Dominion Bank 3,500 135,310 Canada 1.6%
  403,370   4.9%
 
REITS
    Welltower 2,000 127,560 United States 1.6%
 
  530,930   6.5%
 
Health Care  
 
Biotech
    Biogen² 600 155,652 United States 1.9%
    Medivation² 3,000 107,310 United States 1.3%
  262,962   3.2%
 
Health Care Supply Chain
    Express Scripts² 2,500 175,950 United States 2.2%
 
Large Pharma
    Johnson & Johnson 900 94,689 United States 1.2%
    Novo Nordisk ADS 2,750 141,350 Denmark 1.7%
  236,039   2.9%
 
Life Science Equipment
    Abbott Laboratories 2,000 77,480 United States 0.9%
 
Specialty Pharma
    Akorn² 4,000 106,360 United States 1.3%
    Allergan² 600 174,066 Ireland 2.1%
  280,426   3.4%
 
  1,032,857   12.6%
 
Industrials  
 
Commercial & Residential Building Equipment & Systems
    Honeywell International 1,250 126,688 United States 1.6%
 
Flow Control Equipment
    Parker Hannifin 500 50,600 United States 0.6%
 
Rail Freight
    Canadian National Railway 1,600 92,640 Canada 1.1%
 
  269,928   3.3%
 
Materials  
 
Basic & Diversified Chemicals
    Praxair 700 71,253 United States 0.9%
 
Containers & Packaging
    3M 975 152,948 United States 1.9%
 
Specialty Chemicals
    RPM International 3,500 142,975 United States 1.7%
 
  367,176   4.5%
 
Technology  
 
Communications Equipment
    Apple 1,500 145,035 United States 1.8%
 
Infrastructure Software  
    Oracle 4,000 147,120 United States 1.8%
 
Semiconductor Devices
    Xilinx 2,500 118,050 United States 1.4%
 
Semiconductor Manufacturing
    Taiwan Semiconductor ADS 3,034 71,451 Taiwan 0.9%
 
  481,656   5.9%
 
Utilities  
 
Integrated Utilities
    NextEra Energy 1,250 141,025 United States 1.7%
 
Power Generation  
    NRG Energy 5,000 53,900 United States 0.7%
 
Utility Networks  
    Sempra Energy 1,000 96,510 United States 1.2%
 
  291,435   3.6%
 
Total Common Stocks   $4,804,951   58.8%

Corporate Bonds — 20.9% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Communications  
 
    America Movil 5.00% due on 03/30/2020 $100,000 $109,469 1.3%
    Bellsouth Capital Funding 7.875% due 02/15/2030 150,000 177,978 2.2%
 
  250,000 287,447 3.5%
 
Consumer Discretionary  
 
    ADT 4.125% due 06/15/2023 150,000 126,375 1.6%
    Stanford University 4.013% due 05/01/2042 100,000 107,047 1.3%
 
  250,000 233,422 2.9%
 
Energy  
 
    Boardwalk Pipelines 5.50% due 02/01/2017 100,000 98,798 1.2%
 
  100,000 98,798 1.2%
 
Financials  
 
    American Express 5.50% due 09/12/2016 100,000 102,230 1.2%
    Blackstone Holdings 5.875% due 03/15/2021 100,000 113,897 1.4%
    Branch Banking & Trust 5.625% due 09/15/2016 100,000 102,157 1.2%
    General Electric Capital 5.35% due 04/15/2022 101,000 114,089 1.4%
    PartnerRe Finance 5.50% due 06/01/2020 100,000 110,499 1.4%
    Western Union 5.93% due 10/01/2016 30,000 30,711 0.4%
 
  531,000 573,583 7.0%
 
Health Care  
 
    Becton Dickinson 3.125% due 11/08/2021 100,000 102,161 1.2%
 
  100,000 102,161 1.2%
 
Industrials  
 
    John Deere Capital 2.25% due 06/07/2016 100,000 100,423 1.2%
    Ryder System 5.85% due 11/01/2016 100,000 103,015 1.3%
 
  200,000 203,438 2.5%
 
Materials  
 
    Air Products & Chemicals 4.375% due 08/21/2019 100,000 107,846 1.3%
 
  100,000 107,846 1.3%
 
Technology  
 
    Cisco Systems 2.90% due 03/04/2021 100,000 103,918 1.3%
 
  100,000 103,918 1.3%
 
Total Corporate Bonds   $1,631,000 $1,710,613 20.9%
 
Government Agency Bonds — 2.5% Coupon / Maturity Face Amount Market Value Percentage of Assets
Mortgage Finance  
 
    Fannie Mae 2.00% due 05/16/2017 $200,000 $200,330 2.5%
 
  200,000 200,330 2.5%
 
Government Bonds — 4.9% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Foreign Government Bonds  
 
    Government of Mexico 4.00% due 10/02/2023 $100,000 $102,850 1.3%
    New Zealand Government 5.50% due 04/15/2023 100,000 78,019 1.0%
    Republic of Chile 3.875% due 08/05/2020 200,000 216,000 2.6%
 
  400,000 396,869 4.9%
 
Municipal Bonds — 5.5% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
General Obligation  
 
    Lake Washington SCD #414 WA BAB 4.906% due 12/01/2027 $100,000 $110,356 1.3%
    Skagit SCD #1 4.613% due 12/01/2022 100,000 113,443 1.4%
 
  200,000 223,799 2.7%
Revenue Bonds  
 
    New York City Housing Dev. Corp 2.65% due 05/01/2021 100,000 103,320 1.3%
    Tacoma WA Elec. Sys. Revenue 5.966% due 01/01/2035 100,000 126,577 1.5%
 
  200,000 229,897 2.8%
 
Total Municipal Bonds   $400,000 453,696 5.5%
 
Total investments (Cost = $7,382,880)   7,566,459 92.6%
Other assets (net of liabilities)   601,534 7.4%
Total net assets   $8,167,993 100.0%
¹ Country of domicile
² Non-income producing security

ADS: American Depositary Share
ADR: American Depositary Receipt

 

Saturna Investment Trust, Sextant Global High Income Fund

Common Stocks — 47.6% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Telecom Carriers
    Orange ADS 10,000 $171,900 France 2.6%
    SK Telecom ADS 6,200 129,084 South Korea 2.0%
 
  300,984   4.6%
Consumer Discretionary  
 
Lodging
    Whistler Blackcomb Holdings 7,000 129,342 Canada 2.0%
 
  129,342   2.0%
 
Energy  
 
Exploration & Production
    CNOOC ADR 1,400 147,140 China 2.3%
 
Integrated Oils
    Royal Dutch Shell ADS 3,000 136,440 United Kingdom 2.1%
    Statoil ADS 10,000 145,600 Norway 2.2%
    Total ADS 3,800 169,898 France 2.6%
  451,938   6.9%
 
Oil & Gas Services & Equip
    National Oilwell Varco 4,200 122,934 United States 1.9%
 
  722,012   11.1%
 
Financials  
 
Banks
    Skandinaviska Enskilda Banken 13,000 126,616 Sweden 2.0%
 
Diversified Banks
    Banco Santander ADS 28,000 111,720 Spain 1.7%
    Itau Unibanco Holding ADS 20,000 126,000 Brazil 1.9%
  237,720   3.6%
 
Private Equity
    Apollo Global Management 9,000 139,950 United States 2.1%
 
  504,286   7.7%
 
Health Care  
 
Large Pharma
    GlaxoSmithKline ADS 3,100 119,877 United Kingdom 1.8%
    Novartis ADS 1,900 135,109 Switzerland 2.1%
 
  254,986   3.9%
 
Industrials  
 
Infrastructure Construction
    CCR 30,000 95,180 Brazil 1.5%
    Hopewell Highway Infrastructure 325,000 152,434 China 2.3%
 
  247,614   3.8%
 
Materials  
 
Agricultural Chemicals
    Potash Corp of Saskatchewan 8,000 135,520 Canada 2.1%
 
Base Metals
    South 32² 29,000 128,760 Australia 2.0%
 
Basic & Diversified Chemicals
    Braskem ADS 12,000 151,560 Brazil 2.3%
 
Steel Raw Material Suppliers  
    Anglo American ADR 26,000 85,540 United Kingdom 1.3%
    BHP Billiton 6,000 135,660 Australia 2.1%
  221,200   3.4%
 
  637,040   9.8%
 
Technology  
 
Semiconductor Devices
    Microchip Technology 4,000 177,960 United States 2.7%
 
  177,960   2.7%
 
Utilities  
 
Power Generation
    Engie ADR 8,500 130,900 France 2.0%
 
  130,900   2.0%
 
Total Common Stocks   $3,105,124   47.6%

Corporate Bonds — 37.0% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Consumer Discretionary  
 
    ADT 4.125% due 06/15/2023 $150,000 $126,375 United States 1.9%
    Best Buy 3.75% due 03/15/2016 62,000 62,083 United States 1.0%
    GAP 5.95% due 04/12/2021 100,000 104,078 United States 1.6%
    Hanesbrands 6.375% due 12/15/2020 150,000 155,250 United States 2.4%
    Outerwall Inc 6.00% due 03/15/2019 250,000 198,750 United States 3.0%
    Rent-A-Center 6.625% due 11/15/2020 200,000 166,000 United States 2.5%
    Toys R Us Property II 8.50% due 12/01/2017 150,000 141,375 United States 2.2%
 
  1,062,000 953,911   14.6%
 
Consumer Staples  
 
    Elizabeth Arden 7.375% due 03/15/2021 47,000 26,790 United States 0.4%
    Grupo Bimbo 4.875% due 06/27/2044 200,000 173,598 Mexico 2.7%
    San Miguel 4.875% due 04/26/2023 200,000 190,000 Philippines 2.9%
 
  447,000 390,388   6.0%
 
Energy  
 
    Chesapeake Midstream Partners 6.125% due 07/15/2020 125,000 110,040 United States 1.7%
    Goodrich Petroleum 8.875% due 03/15/2019 400,000 800 United States 0.0%4
    Petrobras International Finance 6.875% due 01/20/2040 50,000 31,375 Brazil 0.5%
    Petrobras International Finance 6.75% due 07/27/2041 80,000 50,000 Brazil 0.7%
 
  655,000 192,215   2.9%
 
Financials  
 
    Jefferies Group 5.125% due 01/20/2023 250,000 246,937 United States 3.8%
 
  250,000 246,937   3.8%
 
Industrials  
 
    Burlington Northern Santa Fe 5.05% due 03/01/2041 200,000 218,210 United States 3.3%
 
  200,000 218,210   3.3%
 
Materials  
 
    Allegheny Technologies 5.875% due 05/15/2023 150,000 103,500 United States 1.6%
    AngloGold Ashanti Holdings 5.375% due 04/15/2020 100,000 95,250 South Africa 1.4%
 
  250,000 198,750   3.0%
 
Technology  
 
    Hewlett Packard 4.65% due 12/09/2021 100,000 102,020 United States 1.6%
 
  100,000 102,020   1.6%
 
Utilities  
 
    Iberdrola International 5.75% due 02/27/2049 100,000 114,104 Spain 1.8%
 
  100,000 114,104   1.8%
 
Total Corporate Bonds   3,064,000 2,416,535   37.0%
 
Government Bonds — 7.1% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Foreign Government Bonds  
 
    Colombia Republic 8.375% due 02/15/2027 $125,000 $142,812 Colombia 2.2%
    Federal Republic of Brazil 8.50% due 01/05/2024 $750,000 149,419 Brazil 2.3%
    Mexico Bonos Desarrollo 6.50% due 06/10/2021 MXN 20,000 114,992 Mexico 1.8%
    Republic of South Africa 8.25% due 09/15/2017 ZAR 900,000 56,599 South Africa 0.8%
 
  463,822   7.1%
 
Municipal Bonds — 4.1% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Revenue  
 
    Colony TX Local Development 7.00% due 10/01/2027 $100,000 $104,567 United States 1.6%
    Colony TX Local Development³ 7.625% due 10/01/2042 50,000 50,140 United States 0.8%
    Colony TX NFM Sales Tax Revenue³ 7.25% due 10/01/2033 50,000 48,917 United States 0.8%
    Puerto Rico Aqueduct & Sewer³ 5.00% due 07/01/2019 85,000 60,571 Puerto Rico 0.9%
 
  285,000 264,195   4.1%
 
Total investments (Cost =$7,650,470)   6,249,676   95.8%
Other assets (net of liabilities)   272,509   4.2%
Total net assets   $6,522,185   100.0%
¹ Country of domicile
² Non-income producing
³ Indicates an odd lot. Please refer to Odd Lots below for more information regarding odd lots.
4 Amount is less than 0.05%

ADS: American Depositary Share
ADR: American Depositary Receipt

 

Saturna Investment Trust, Sextant Growth Fund

Common Stock — 93.6% Number of Shares Market Value Percentage of Assets
 
Communications  
 
Internet Media
    Alphabet, Class A¹ 1,998 $1,433,006 3.6%
    Facebook, Class A¹ 21,104 2,256,440 5.7%
 
  3,689,446 9.3%
 
Consumer Discretionary  
 
Airlines
    Alaska Air 15,250 1,126,975 2.9%
 
Apparel, Footwear & Accessory Design
    Nike, Class B 24,510 1,509,571 3.8%
    Under Armour¹ 13,390 1,120,609 2.9%
  2,630,180 6.7%
 
E-Commerce Discretionary
    Amazon.com¹ 1,529 844,803 2.1%
 
Home Improvement
    Stanley Black & Decker 9,984 938,596 2.4%
 
Home Products Stores
    Home Depot 5,464 678,192 1.7%
    Lowe's 12,500 844,125 2.1%
  1,522,317 3.8%
 
Jewelry & Watch Stores
    Signet Group 10,000 1,084,000 2.7%
 
Other Commercial Services
    Ecolab 9,230 946,536 2.4%
 
Restaurants
    Starbucks 27,758 1,615,793 4.1%
 
Specialty Apparel Stores
    TJX Companies 23,847 1,767,063 4.5%
 
  12,476,263 31.6%
 
Consumer Staples  
 
Food & Drug Stores
    CVS Health 15,067 1,464,060 3.7%
 
Mass Merchants
    Costco Wholesale 6,243 936,637 2.4%
 
  2,400,697 6.1%
 
Financials  
 
Banks
    Signature Bank¹ 7,052 913,587 2.3%
 
Consumer Finance  
    FLEETCOR Technologies¹ 13,379 1,708,364 4.3%
    Mastercard, A 12,722 1,105,796 2.8%
  2,814,160 7.1%
 
Diversified Banks
    JP Morgan Chase 19,205 1,081,241 2.7%
 
Investment Management
    BlackRock 3,885 1,211,965 3.1%
 
  6,020,953 15.2%
 
Health Care  
 
Biotech
    Amgen 5,267 749,389 1.9%
    Gilead Sciences 7,064 616,334 1.5%
    Medivation¹ 28,370 1,014,795 2.6%
  2,380,518 6.0%
 
Health Care Supply Chain
    Express Scripts¹ 11,858 834,566 2.1%
 
Life Science Equipment
    Abbott Laboratories 20,799 805,753 2.0%
 
Specialty Pharma
    Allergan¹ 3,333 966,937 2.5%
 
  4,987,774 12.6%
 
Industrials  
 
Building Sub Contractors
    EMCOR 11,693 536,358 1.4%
 
  536,358 1.4%
 
Materials  
 
Specialty Chemicals
    Ashland 16,123 1,536,361 3.9%
    RPM International 9,000 367,650 0.9%
 
  1,904,011 4.8%
 
Technology      
 
Application Software
    Adobe Systems¹ 11,000 936,650 2.4%
 
Communications Equipment
    Apple 21,767 2,104,651 5.3%
 
Infrastructure Software
    Microsoft 22,757 1,157,876 2.9%
 
Semiconductor Devices
    Micron Technology¹ 74,075 787,417 2.0%
 
  4,986,594 12.6%
 
Total investments (Cost=$31,188,750) 37,002,096 93.6%
Other assets (net of liabilities)   2,536,757 6.4%
Total net assets   $39,538,853 100.0%
¹ Non income producing security

 

Saturna Investment Trust, Sextant International Fund

Common Stocks — 90.4% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Publishing & Broadcasting
    Pearson ADS 35,000 $414,050 United Kingdom 0.6%
 
Telecom Carriers
    BCE 50,000 2,156,000 Canada 3.2%
    SK Telecom ADR 30,000 624,600 South Korea 0.9%
    Telefonica ADS 129,570 1,287,926 Spain 1.9%
    Telus 50,000 1,457,000 Canada 2.2%
    Turkcell Iletisim Hizmetleri ADS 75,000 699,750 Turkey 1.0%
  6,225,276   9.2%
 
  6,639,326   9.8%
 
Consumer Discretionary  
 
Airlines
    Copa Holdings, Class A 30,000 1,831,800 Panama 2.7%
 
Automobiles
    Toyota Motor ADS 32,000 3,331,200 Japan 4.9%
 
E-Commerce Discretionary
    MercadoLibre 10,000 1,017,600 Argentina² 1.5%
 
Lodging
    Belmond, Class A³ 288,500 2,651,315 Bermuda 3.9%
 
  8,831,915   13.0%
 
Consumer Staples  
 
Beverages
    Fomento Economico Mexico ADS 30,000 2,807,700 Mexico 4.2%
 
Food & Drug Stores
    Carrefour ADS 170,000 890,800 France 1.3%
 
Household Products
    Unilever ADS 75,000 3,211,500 United Kingdom 4.7%
 
  6,910,000   10.2%
 
Energy  
 
Integrated Oils
    Statoil ADS 60,000 873,600 Norway 1.3%
    Total ADS 45,000 2,011,950 France 3.0%
 
  2,885,550   4.3%
 
Financials  
 
Banks
    Australia & New Zealand Banking Group ADS 80,000 1,282,400 Australia 1.9%
    Toronto-Dominion Bank 80,000 3,092,800 Canada 4.5%
  4,375,200   6.4%
 
Diversified Banks
    Banco Santander ADS 114,955 458,671 Spain 0.7%
    Mitsubishi UFJ Financial Group ADR 300,000 1,287,000 Japan 1.9%
  1,745,671   2.6%
 
  6,120,871   9.0%
 
Health Care  
 
Health Care Supply Chain
    Sinopharm Group 250,000 913,781 China 1.3%
 
Large Pharma
    Novartis ADR 40,000 2,844,400 Switzerland 4.2%
    Novo Nordisk ADS 50,000 2,570,000 Denmark 3.8%
  5,414,400   8.0%
 
Medical Equipment
    Koninklijke Philips 20,655 523,191 Netherlands 0.8%
 
Specialty Pharma
    Shire ADS 10,000 1,561,100 Ireland 2.3%
 
  8,412,472   12.4%
 
Materials  
 
Agricultural Chemicals
    Potash Corp of Saskatchewan 39,000 660,660 Canada 1.0%
 
Specialty Chemicals
    BASF ADR 40,000 2,599,200 Germany 3.8%
 
  3,259,860   4.8%
 
Technology  
 
Application Software
    Dassault Systems ADR 60,000 4,541,100 France 6.7%
    Nice Systems ADS 60,000 3,595,200 Israel 5.3%
  8,136,300   12.0%
 
Electronics Components
    Nidec ADS 53,406 894,016 Japan 1.3%
 
Information Services
    Wolters Kluwer 130,000 4,892,280 Netherlands 7.2%
 
Semiconductor Manufacturing
    ASML 42,350 3,854,697 Netherlands 5.7%
 
  17,777,293   26.2%
 
Utilities  
 
Utility Networks
    Korea Electric Power ADS 20,000 470,800 South Korea 0.7%
 
  470,800   0.7%
 
Total investments (Cost = $45,905,552) 61,308,087   90.4%
Other assets (net of liabilities)   6,489,438   9.6%
Total net assets   $67,797,525   100.0%
¹ Country of domicile unless otherwise indicated
² Denotes a country or region of primary exposure
³ Non-income producing security

ADS: American Depositary Share
ADR: American Depositary Receipt

 

Saturna Investment Trust, Saturna Sustainable Equity Fund

Common Stocks — 74.3% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Advertising & Marketing
    WPP ADS 545 $57,356 United Kingdom 1.9%
 
Entertainment Content
    Walt Disney Company 306 29,229 United States 0.9%
 
Internet Media
    Alphabet, Class A² 122 87,501 United States 2.8%
 
  174,086   5.6%
 
Consumer Discretionary  
 
Apparel, Footwear & Accessory Design
    Nike, Class B 1,558 95,957 United States 3.1%
    Samsonite International 17,400 50,667 Luxembourg 1.6%
  146,624   4.7%
 
Auto Parts
    Valeo 533 73,601 France 2.4%
 
Automobiles
    Bayerishce Motoren Werke AG 520 42,193 Germany 1.4%
 
Home Products Stores
    Home Depot 633 78,568 United States 2.5%
 
Jewelry & Watch Stores
    Pandora A/S 581 73,258 Denmark 2.4%
 
Other Commercial Services
    Ecolab 723 74,144 United States 2.4%
 
Restaurants
    Starbucks 1,713 99,714 United States 3.2%
 
Specialty Apparel Stores
    TJX Companies 996 73,804 United States 2.4%
 
  661,906   21.4%
 
Consumer Staples  
 
Household Products
    Church & Dwight 700 63,532 United States 2.1%
    Unilever 1,830 77,976 Netherlands 2.5%
 
  141,508   4.6%
 
Financials  
 
Consumer Finance
    Mastercard, Class A 824 71,622 United States 2.3%
 
Diversified Banks
    Wells Fargo & Co 1,200 56,304 United States 1.8%
 
Life Insurance
    AIA Group 11,600 59,236 Hong Kong 1.9%
 
P&C Insurance
    Chubb Ltd 700 80,871 Switzerland 2.6%
 
REIT
    GLP-J REIT 83 88,332 Japan 2.9%
 
  356,365   11.5%
 
Health Care  
 
Biotech
    Gilead Sciences 627 54,706 United States 1.8%
 
Health Care Facilities
    Ramsay Health Care Limited 2,308 108,907 Australia 3.5%
 
Large Pharma
    Novo Nordisk ADS 1,569 80,647 Denmark 2.6%
 
Specialty Pharma
    Allergan² 350 101,538 Ireland 3.3%
    Shire ADS 342 53,390 Ireland 1.7%
 
  399,188   12.9%
 
Industrials  
 
Electrical Components
    Murata Manufacturing 1,000 119,871 Japan 3.9%
    TE Connectivity 351 19,979 Switzerland 0.6%
 
  139,850   4.5%
 
Materials  
 
Agricultural Chemicals
    Potash Corp. of Saskatchewan 4,000 67,760 Canada 2.2%
 
  67,760   2.2%
 
Technology  
 
Application Software
    Dassault Systems ADR 1,080 81,740 France 2.6%
 
Communications Equipment
    Apple 536 51,826 United States 1.7%
 
Infrastructure Software
    Microsoft 1,438 73,165 United States 2.4%
 
IT Services
    Accenture, Class A 693 69,480 Ireland 2.2%
 
Semiconductor Devices
    NXP Semiconductors² 649 46,235 Netherlands 1.5%
 
  322,446   10.4%
 
Utilities  
 
Utility Networks
    Veolia Environnement 1,552 35,006 France 1.2%
 
  35,006   1.2%
 
Total investments (Cost = $2,386,858) 2,298,115   74.3%
Other assets (net of liabilities)   796,044   25.7%
Total net assets   $3,094,159   100.0%
¹ Country of domicile
² Non-income producing security

ADS: American Depositary Share
ADR: American Depositary Receipt

 

Saturna Investment Trust, Saturna Sustainable Bond Fund

Asset-Backed Securities — 1.4% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Asset-Backed Securities  
 
    CRART 2014-3 C 3.61% due 06/17/2021 $100,000 $100,622 United States 1.4%
 
  100,000 100,622   1.4%
 
Corporate Bonds — 86.4% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Communications  
 
    Morgan Stanley 2.20% due 12/07/2018 150,000 150,491 United States 2.2%
    Telecom Italia 7.175% due 06/18/2019 300,000 331,500 Luxembourg 4.8%
    Vodafone Group 4.375% due 03/16/2021 250,000 264,187 United Kingdom 3.8%
 
  700,000 746,178   10.8%
 
Consumer Discretionary  
 
    Outerwall Inc. 6.00% due 03/15/2019 350,000 278,250 United States 4.0%
    Southwest Airlines 2.75% due 11/06/2019 175,000 179,132 United States 2.6%
    Toyota Motor Credit 2.75% due 02/05/2028 100,000 97,866 Japan 1.4%
    Toyota Motor Credit 3.00% due 03/20/2030 200,000 198,557 Japan 2.9%
 
  825,000 753,805   10.9%
 
Financials  
 
    Aircastle 4.625% due 12/15/2018 250,000 253,450 Bermuda 3.7%
    Ally Financial 3.50% due 04/15/2018 50,000 49,517 United States 0.7%
    Ally Financial 3.70% due 12/15/2018 65,000 64,621 United States 0.9%
    Ally Financial 3.95% due 04/15/2020 50,000 50,014 United States 0.7%
    Bancolombia 5.95% due 06/03/2021 300,000 309,750 Colombia 4.5%
    Chubb 6.375% due 04/15/2037 325,000 261,625 Switzerland 3.8%
    Credit Suisse 5.40% due 01/14/2020 200,000 210,999 Switzerland 3.0%
    HCP 3.15% due 08/01/2022 160,000 149,744 United States 2.2%
    Royal Bank of Scotland 4.70% due 07/03/2018 250,000 251,173 United Kingdom 3.6%
    Sun Life Financial 5.59% due 01/30/2023 CAD 200,000 156,662 Canada 2.3%
    Toronto Dominion Bank 2.00% due 02/26/2022 25,000 24,568 Canada 0.3%
    Toronto Dominion Bank 2.15% due 03/31/2022 75,000 75,007 Canada 1.1%
    Vornado Realty LP 2.50% due 06/30/2019 125,000 123,734 United States 1.8%
    Westpac Banking 4.625% due 06/01/2018 110,000 115,270 Australia 1.7%
 
  2,096,134   30.3%
 
Health Care  
 
    Koninklijke Philips NV 3.75% due 03/15/2022 327,000 337,880 Netherlands 4.9%
    Sanofi 4.00% due 03/29/2021 275,000 301,387 France 4.4%
 
  602,000 639,267   9.3%
 
Industrials  
 
    Ingersoll-Rand 2.625% due 05/01/2020 300,000 298,065 Ireland 4.3%
    Pitney Bowes 5.25% due 01/15/2037 332,000 335,091 United States 4.9%
 
  632,000 633,156   9.2%
 
Technology  
 
    Flextronics International 4.625% due 02/15/2020 325,000 332,313 Singapore 4.8%
    Lexmark 6.65% due 06/01/2018 100,000 105,637 United States 1.5%
    Nokia 5.375% due 05/15/2019 300,000 318,000 Finland 4.6%
    Seagate HDD Cayman 3.75% due 11/15/2018 100,000 97,881 Cayman Islands 1.4%
 
  825,000 853,831   12.3%
 
Utilities  
 
    United Utilities 4.55% due 06/19/2018 59,000 61,200 United Kingdom 0.9%
    United Utilities 5.375% due 02/01/2019 175,000 186,437 United Kingdom 2.7%
 
  234,000 247,637   3.6%
 
Total Corporate Bonds     5,970,008   86.4%
 
Government Bonds — 8.5% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Foreign Government Bonds  
 
    Republic of Turkey 7.00% due 03/11/2019 300,000 328,050 Turkey 4.8%
    United Mexican States 3.50% due 01/21/2021 250,000 257,500 Mexico 3.7%
 
  550,000 585,550   8.5%
 
Mortgage-Backed Securities — 0.7% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Mortgage-Backed Securities  
 
    BOAMS 2004-03 4A1 4.75% due 04/25/2034 44,828 45,162 United States 0.7%
 
  $44,828 45,162   0.7%
 
Total investments (Cost = $6,934,802)   6,701,342   97.0%
Other assets (net of liabilities)   209,314   3.0%
Total net assets   $6,910,656   100.0%
¹ Country of domicile

 

Saturna Investment Trust, Idaho Tax-Exempt Fund

Tax-Exempt Municipal Bonds — 96.2% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Financial Services  
 
    Idaho Bond Bank Authority¹ 4.00% due 09/15/2019 $90,000 $97,101 0.5%
    Idaho State Bond Bank 4.00% due 09/15/2032 405,000 440,352 2.5%
 
  495,000 537,453 3.0%
 
General Obligation  
 
    Ada & Canyon Cos. ID JSD #2 Meridian 5.00% due 08/15/2032 325,000 388,473 2.2%
    Ada & Canyon Cos. ID JSD #3 Kuna 5.00% due 09/15/2019 240,000 259,630 1.5%
    Ada & Canyon Cos. ID JSD #3 Kuna 4.00% due 08/15/2022 400,000 460,724 2.6%
    Adams & Washington Cos. ID JSD #432 4.00% due 08/15/2019 100,000 101,580 0.6%
    Bingham Co. ID SCD #52 Snake HS 4.00% due 09/01/2020 250,000 269,913 1.5%
    Bingham Co. ID SCD #52 Snake HS 4.00% due 09/01/2027 200,000 212,754 1.2%
    Blaine Co. ID Series A 4.05% due 08/01/2023 150,000 157,390 0.9%
    Bonneville & Bingham Cos. ID JSD #93 5.00% due 09/15/2029 250,000 303,740 1.7%
    Bonneville & Bingham Cos. ID JSD #93 5.00% due 09/15/2031 200,000 240,100 1.4%
    Bonneville Co. ID SCD #91¹ 4.00% due 09/15/2026 50,000 55,778 0.3%
    Bonneville Co. ID SCD #91 3.75% due 09/15/2032 285,000 300,190 1.7%
    Boundary Co. ID SCD #101 4.00% due 08/15/2021 240,000 251,263 1.4%
    Canyon Co. ID SCD #134 Middleton 4.00% due 09/15/2028 400,000 449,528 2.5%
    Canyon Co. ID SCD #135 Notus 3.25% due 09/15/2031 290,000 306,075 1.7%
    Canyon Co. ID SCD #135 Notus 3.25% due 09/15/2032 170,000 177,958 1.0%
    Canyon Co. ID SCD #139 Vallivue 5.00% due 09/15/2024 260,000 316,792 1.8%
    Canyon Co. ID SCD #139 Vallivue 4.35% due 09/15/2025 350,000 357,472 2.0%
    Cassia, Oneida, Twin Falls JSCD #151 3.375% due 09/15/2034 160,000 161,237 0.9%
    Fremont & Madison Cos. ID JSD #215 4.00% due 08/15/2019 200,000 212,962 1.2%
    Fremont & Madison Cos. ID JSD #215 4.125% due 08/15/2024 130,000 137,877 0.8%
    Jefferson & Madison Cos. ID JSD #251 Rigby 4.25% due 09/01/2024 100,000 107,267 0.6%
    Jerome, Lincoln & Gooding Cos. JSD #261 3.75% due 09/15/2018 125,000 125,151 0.7%
    Jerome, Lincoln & Gooding Cos. JSD #261 5.00% due 09/15/2022 250,000 250,407 1.4%
    Kootenai Co. ID SCD #271 4.00% due 09/15/2025 165,000 187,171 1.1%
    Kootenai Co. ID SCD #273 4.00% due 08/15/2031 265,000 292,632 1.7%
    Kootenai-Shoshone ID Area Libraries 4.25% due 08/01/2021 220,000 223,337 1.3%
    Latah Co. ID SCD #281 4.00% due 08/15/2027 100,000 115,651 0.6%
    Latah Co. ID SCD #281 4.00% due 08/15/2028 200,000 229,196 1.3%
    Latah, Nez Perce, & Clearwater Cos. ID JSD #283 4.50% due 08/15/2027 190,000 199,529 1.1%
    Madison Co. ID SCD #321 Rexburg 4.50% due 08/15/2024 410,000 425,642 2.4%
    Madison Co. ID SCD #321 Rexburg 4.50% due 08/15/2026 250,000 259,538 1.5%
    Minidoka & Jerome Cos. ID JSD #331¹ 4.50% due 08/15/2018 75,000 76,214 0.4%
    Minidoka & Jerome Cos. ID JSD #331¹ 4.50% due 08/15/2020 75,000 76,214 0.4%
    Minidoka & Jerome Cos. ID JSD #331 4.375% due 08/15/2024 225,000 229,079 1.3%
    Minidoka & Jerome Cos. ID JSD #331 4.50% due 08/15/2025 160,000 162,990 0.9%
    Owyhee & Elmore Cos. ID JSD #365 4.00% due 08/15/2027 350,000 367,511 2.1%
    Payette Co. ID SCD #373 5.00% due 09/15/2024 350,000 358,684 2.0%
    Twin Falls & Gooding Cos. JSD #412 4.125% due 09/01/2023 100,000 115,335 0.6%
    Twin Falls Co. ID SCD #411 4.00% due 09/15/2027 170,000 194,526 1.1%
    Twin Falls Co. ID SCD #411 4.25% due 09/15/2030 300,000 340,857 1.9%
    Twin Falls Co. ID SCD #411 4.75% due 09/15/2039 200,000 226,016 1.3%
    Twin Falls Co. ID SCD #411 Series A 4.25% due 09/15/2031 100,000 112,880 0.6%
    Twin Falls Co. ID SCD #414 4.25% due 09/15/2028 445,000 515,034 2.9%
    Valley & Adams Cos. ID JSD #421 4.50% due 08/01/2022 135,000 137,304 0.8%
    Valley & Adams Cos. ID JSD #421 4.50% due 08/01/2024 290,000 294,950 1.7%
    Valley & Adams Cos. ID JSD #421 3.00% due 08/01/2026 220,000 227,269 1.3%
 
  10,120,000 10,971,820 61.9%
 
Medical/Hospitals  
 
    Idaho Health Facility Authority Revenue 6.00% due 12/01/2023 200,000 228,644 1.3%
    Idaho Health Facility Authority Revenue 6.25% due 12/01/2033 115,000 132,250 0.8%
    Idaho Health Facility Trinity Health Group 3.25% due 12/01/2028 300,000 309,684 1.7%
 
  615,000 670,578 3.8%
 
Municipal Leases  
 
    Nez Perce Co. ID COPS 4.50% due 02/01/2021 150,000 154,638 0.9%
 
  150,000 154,638 0.9%
 
Pollution Control  
 
    Caldwell ID Sewer Revenue 4.50% due 09/01/2019 100,000 112,026 0.6%
    Idaho Bond Bank Authority 4.30% due 09/01/2022 135,000 135,294 0.8%
    Idaho Bond Bank Authority¹ 4.125% due 09/15/2023 75,000 78,440 0.4%
    Moscow ID Sewer Revenue 4.45% due 05/01/2028 200,000 212,364 1.2%
 
  510,000 538,124 3.0%
 
Power Generation  
 
    Idaho Falls ID Electric Revenue¹ 6.75% due 04/01/2019 50,000 52,193 0.3%
 
  50,000 52,193 0.3%
 
Real Estate  
 
    Idaho State Building Authority Revenue 5.00% due 09/01/2031 200,000 237,174 1.3%
    Idaho State Building Authority Revenue 5.00% due 09/01/2032 400,000 472,476 2.7%
    Post Falls ID LID SPA 5.00% due 05/01/2021 240,000 240,118 1.3%
 
  840,000 949,768 5.3%
 
State Education  
 
    Boise State University ID Revenues 4.50% due 04/01/2027 250,000 260,735 1.5%
    Boise State University ID Revenues 5.00% due 04/01/2034 385,000 424,890 2.4%
    Idaho State University Revenues 4.625% due 04/01/2024 220,000 220,425 1.2%
    University of Idaho Revenues 5.00% due 04/01/2032 455,000 519,314 2.9%
    University of Idaho Revenues 5.00% due 04/01/2028 225,000 256,322 1.5%
 
  1,535,000 1,681,686 9.5%
 
Transportation  
 
    Boise ID Airport Parking Facility Revenue 3.00% due 09/01/2028 210,000 211,273 1.2%
    Idaho Housing & Finance Association 4.60% due 07/15/2023 250,000 270,260 1.5%
    Idaho Housing & Finance Association 5.00% due 07/15/2024 200,000 203,412 1.2%
    Idaho Housing & Finance Association¹ 5.00% due 07/15/2027 50,000 55,904 0.3%
 
  710,000 740,849 4.2%
 
Water Supply  
 
    Chubbuck ID Water Revenue 4.00% due 09/01/2025 155,000 169,954 1.0%
    Idaho Bond Bank Authority 4.00% due 09/15/2024 100,000 104,632 0.6%
    Pocatello ID Water Revenue 4.50% due 02/01/2024 100,000 106,648 0.6%
    Pocatello ID Water Revenue 4.75% due 02/01/2026 350,000 374,780 2.1%
 
  705,000 756,014 4.3%
 
Total investments (Cost = $16,345,705) $15,730,000 17,053,123 96.2%
Other assets (net of liabilities)   681,919 3.8%
Total net assets   $17,735,042 100.0%
¹ Indicates an odd lot. Please refer to Odd Lots below for more information regarding odd lots.

 

Organization

Saturna Investment Trust (the "Trust") was established under Washington State Law as a business trust on February 20, 1987.

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 latest bid price.

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

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

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

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

Fair Value Measurements Disclosure:

The Funds have adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed 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 market place, 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.

The following is a summary of the inputs used as of February 29, 2016 in valuing the Funds' investments carried at value:

Funds Level 1
Quoted Price
Level 2
Significant Observable Input
Level 3
Significant Unobservable Input
Total
Short-Term Bond
Corporate Bonds $- $6,254,873¹ $- $6,254,873
Government Bonds - 960,089¹ - 960,089
Total Assets $- $7,214,962 $- $7,214,962
 
Bond Income
Corporate Bonds $- $4,430,722¹ $- $4,430,722
Government Bonds - 1,380,534¹ - 1,380,534
Municipal Bonds - 1,975,274¹ - 1,975,274
Total Assets $- $7,786,530 $- $7,786,530
 
Core
Common Stocks
    Communications $124,920 $52,160 $- $177,080
    Consumer Discretionary 274,950 116,225 - 391,175
    Consumer Staples 713,495 - - 713,495
    Energy 549,219 - - 549,219
    Financials 384,835 146,095 - 530,930
    Health Care 1,032,857 - - 1,032,857
    Industrials 269,928 - - 269,928
    Materials 367,176 - - 367,176
    Technology 481,656 - - 481,656
    Utilities 291,435 - - 291,435
Total Common Stocks $4,490,471 $314,480 $- $4,804,951
 
Corporate Bonds $- $1,710,613¹ $- $1,710,613
 
Government Agency Bonds $- $200,330¹ $- $200,330
 
Government Bonds $- $396,869¹ $- $396,869
 
Municipal Bonds $- $453,696¹ $- $453,696
 
Total Assets $4,490,471 $3,075,988 $- $7,566,459
 
Global High Income
Common Stocks
    Communications $300,984 $- $- $300,984
    Consumer Discretionary - 129,342 - 129,342
    Energy 722,012 - - 722,012
    Financials 377,670 126,616 - 504,286
    Health Care 254,986 - - 254,986
    Industrials - 247,614 - 247,614
    Materials 637,040 - - 637,040
    Technology 177,960 - - 177,960
    Utilities 130,900 - - 130,900
Total Common Stocks $2,601,552 $503,572 $- $3,105,124
 
Corporate Bonds $- $2,416,535¹ $- $2,416,535
 
Government Bonds $- $463,822¹ $- $463,822
 
Municipal Bonds $- $104,567 $159,628 $264,195
 
Total Assets $2,601,552 $3,488,496 $159,628 $6,249,676
 
Growth
Common Stocks $37,002,096¹ - - $37,002,096
Total Assets $37,002,096 $- $- $37,002,096
 
International
Common Stocks
    Communications $6,639,326 $- $- $6,639,326
    Consumer Discretionary 8,831,915 - - 8,831,915
    Consumer Staples 6,910,000 - - 6,910,000
    Energy 2,885,550 - - 2,885,550
    Financials 6,120,871 - - 6,120,871
    Health Care 7,498,691 913,781 - 8,412,472
    Materials 3,259,860 - - 3,259,860
    Technology 12,885,013 4,892,280 - 17,777,293
    Utilities 470,800 - - 470,800
Total Assets $55,502,026 $5,806,061 $- $61,308,087
 
Sustainable Equity
Common Stocks
    Communications $174,086 $- $- $174,086
    Consumer Discretionary 422,187 239,719 - 661,906
    Consumer Staples 141,508 - - 141,508
    Financials 208,797 147,568 - 356,365
    Health Care 290,281 108,907 - 399,188
    Industrials 19,979 119,871 - 139,850
    Materials 67,760 - - 67,760
    Technology 322,446 - - 322,446
    Utilities - 35,006 - 35,006
Total Assets $1,647,044 $651,071 $- $2,298,115
 
Sustainable Bond
Asset Backed Securities $- $100,622¹ $- $100,622
Corporate Bonds - 5,970,008¹ - 5,970,008
Government Bonds - 585,550¹ - 585,550
Mortgage Backed Securities - 45,162¹ - 45,162
Total Assets $- $6,701,342 $- $6,701,342
 
Idaho Tax-Exempt
Municipal Bonds
    Financial Services $- $440,352 $97,101 $537,453
    General Obligation - 10,763,614 208,206 10,971,820
    Medical/Hospitals - 670,578 - 670,578
    Municipal Leases - 154,638 - 154,638
    Pollution Control - 459,684 78,440 538,124
    Power Generation - - 52,193 52,193
    Real Estate - 949,768 - 949,768
    State Education - 1,681,686 - 1,681,686
    Transportation - 684,945 55,904 740,849
    Water Supply - 756,014 - 756,014
Total Assets $- $16,561,279 $491,844 $17,053,123

¹See Schedule of Investments for industry breakout.

During the period ended February 29, 2016, no Fund had transfers between Level 1 and Level 2.

Global High Income Level 3 Roll-Forward Municipal Securities
Beginning balance $160,055
Total unrealized gains (427)
Purchases -
Maturity -
Transfers in and/or out of level 3 -
Ending Balance $159,628

Idaho Tax-Exempt Level 3 Roll-Forward Municipal Securities
Beginning balance $492,190
Total unrealized gains or losses (346)
Total realized gains -
Purchases -
Sales -
Maturity/Call -
Transfers in and/or out of level 3 -
Ending Balance $491,844

Odd Lots:

The bid-side valuations provided by the independent pricing service are for institutional "round-lot" holdings ("Round Lots"). Round Lots consist of 100 bonds (approximately $100,000 each). Some of a Fund's holdings may consist of less than a Round Lot and are considered "Odd Lots." Odd Lot municipal bonds trade at a discount to Round Lots municipal bonds to compensate for the effect of the fixed costs associated with any trade. To reflect this discount, the Funds apply a discount to the valuation of Odd Lot municipal bonds holdings as shown in the following chart.

Total Face Value Adjustment to Price
Under 10,000 $ -0.750
10,000-24,999 -0.625
25,000-49,999 -0.500
50,000-74,999 -0.375
75,000-99,999 $ -0.250
100,000 and up none

Derivative instruments and hedging activities:

The Funds have adopted the financial accounting reporting rules required by the Derivatives and Hedging Topic of the FASB Accounting Standards Codification. The Funds are required to include enhanced disclosure which enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position.

During the fiscal period ended February 29, 2016, the Funds did not hold any derivative instruments.

Federal Income Taxes: The cost basis of investments for federal income tax purposes at February 29, 2016, was as follows:

  Short-Term Bond Bond Income
Cost of investments $7,242,801 $7,503,394
Gross tax unrealized appreciation 30,590 465,047
Gross tax unrealized depreciation (58,429) (181,911)
Net tax unrealized appreciation (depreciation) (27,839) 283,136
 
  Core Global
High Income
Cost of investments $7,382,880 $7,650,470
Gross tax unrealized appreciation 843,715 295,700
Gross tax unrealized depreciation (660,136) (1,696,494)
Net tax unrealized appreciation (depreciation) 183,579 (1,400,794)
 
  Growth International
Cost of investments $31,188,750 $45,905,552
Gross tax unrealized appreciation 8,258,380 19,978,188
Gross tax unrealized depreciation (2,445,034) (4,575,653)
Net tax unrealized appreciation 5,813,346 15,402,535
 
  Sustainable Equity Sustainable Bond
Cost of investments $2,386,858 $6,934,802
Gross tax unrealized appreciation 91,651 14,004
Gross tax unrealized depreciation (180,394) (247,464)
Net tax unrealized depreciation (88,743) (233,460)
 
Idaho Tax-Exempt
Cost of investments $16,345,705
Gross unrealized appreciation 709,734
Gross unrealized depreciation (2,316)
Net unrealized appreciation 707,418

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 was one event or transaction during the period that materially impacted the amounts or disclosures in the Funds' financial statements.

On March 15, 2016, Goodrich Petroleum failed to make a coupon payment for which the Sextant Global High Income Fund accrued, causing a material change to the Fund's price on February 29, 2016. Goodrich Petroleum declared bankruptcy, April 15, 2016.

Item 2. Controls and Procedures

(a) An evaluation was performed within 90 days of the filing of this report, under the supervision of and with the participation of the registrant's management, including the principal executive officer and the principal financial officer, regarding the effectiveness of the design and operation of the registrant's disclosure controls and procedures. Based on that evaluation, the principal executive officer and principal financial officer concluded that the registrant's disclosure controls and procedures were effective.

(b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occured during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits

Certification of Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a2(a)) is attached hereto as Exhibit 99CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SATURNA INVESTMENT TRUST

By:

/s/ Nicholas Kaiser
Nicholas Kaiser, President

Date: April 29, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Nicholas Kaiser
Nicholas Kaiser, President

Date: April 29, 2016


By:

/s/ Christopher Fankhauser
Christopher Fankhauser, Treasurer

Date: April 29, 2016

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