Saturna Investment Trust

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Idaho Tax-Exempt
 

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)

Nicole Trudeau, Esq.
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, 2018
Date of reporting period: February 28, 2018

Item 1. Schedule of Investments

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

Saturna Investment Trust, Sextant Short-Term Bond Fund

Corporate Bonds – 73.1% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Consumer Discretionary  
 
    Alibaba Holding Group 3.125% due 11/28/2021 $350,000 $350,210 3.4%
    Ford Motor Credit 3.157% due 08/04/2020 250,000 249,273 2.5%
    International Game Technology 7.500% due 06/15/2019 250,000 262,932 2.6%
    Snap-On 6.700% due 03/01/2019 350,000 364,640 3.6%
 
  1,227,055 12.1%
 
Consumer Staples  
 
    McCormick & Co. 2.700% due 08/15/2022 500,000 489,565 4.8%
 
  489,565 4.8%
 
Financials  
 
    AvalonBay Communities 6.100% due 03/15/2020 340,000 361,341 3.6%
    Berkshire Hathaway Finance 2.000% due 08/15/2018 300,000 299,906 2.9%
    Camden Property Trust 4.625% due 06/15/2021 275,000 287,233 2.8%
    Jefferies Group 8.500% due 07/15/2019 265,000 284,173 2.8%
    Paccar Financial 2.050% due 11/13/2020 350,000 343,642 3.4%
 
  1,576,295 15.5%
 
Health Care  
 
    Abbott Laboratories 4.125% due 05/27/2020 375,000 385,134 3.8%
    AbbVie 2.500% due 05/14/2020 250,000 247,763 2.4%
    Astrazeneca 2.375% due 01/16/2020 155,000 152,910 1.5%
    Celgene Corp 2.250% due 08/15/2021 300,000 291,180 2.9%
    Gilead Sciences 2.550% due 09/01/2020 400,000 397,298 3.9%
    Teva Pharmaceutical 3.650% due 11/10/2021 350,000 335,203 3.3%
 
  1,809,488 17.8%
 
Industrials  
 
    Emerson Electric 4.875% due 10/15/2019 310,000 320,850 3.2%
    Union Pacific 7.875% due 01/15/2019 127,000 132,760 1.3%
 
  453,610 4.5%
 
Materials  
 
    BHP Billiton Fin United States 6.500% due 04/01/2019 315,000 328,558 3.2%
 
  328,558 3.2%
 
Technology  
 
    Adobe Systems 4.750% due 02/01/2020 379,000 393,878 3.9%
    Juniper Networks Inc 4.600% due 03/15/2021 375,000 387,579 3.8%
    Oracle 5.750% due 04/15/2018 250,000 250,958 2.5%
    Xilinx 2.125% due 03/15/2019 200,000 199,151 2.0%
 
  1,231,566 12.2%
 
Utilities  
 
    LaClede Gas 2.000% due 08/15/2018 300,000 299,400 3.0%
 
  299,400 3.0%
 
Total Corporate Bonds     $7,415,537 73.1%
 
 
Government Bonds – 21.9% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
United States Treasury Notes  
 
    US Treasury Note 2.250% due 07/31/2018 $300,000 $300,504 2.9%
    US Treasury Note 2.750% due 02/15/2019 200,000 201,211 2.0%
    US Treasury Note 3.625% due 02/15/2021 900,000 930,656 9.2%
    US Treasury Note 2.500% due 08/15/2023 500,000 495,000 4.9%
    US Treasury Note 2.000% due 09/30/2020 300,000 297,199 2.9%
 
  2,224,570 21.9%
 
Total Investments (Cost = $9,816,665)   9,640,107 95.0%
Other Assets (net of liabilities)   502,106 5.0%
Total Net Assets     $10,142,213 100.0%

 

Saturna Investment Trust, Sextant Bond Income Fund

Corporate Bonds – 59.7% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Consumer Discretionary  
 
    VF 6.000% due 10/15/2033 200,000 239,443 2.6%
 
  239,443 2.6%
 
Consumer Staples  
 
    Unilever Capital 5.900% due 11/15/2032 200,000 248,671 2.7%
 
  248,671 2.7%
 
Energy  
 
    Baker Hughes 6.875% due 01/15/2029 100,000 126,062 1.3%
    Canadian Natural Resources 6.450% due 06/30/2033 225,000 269,346 2.9%
    Statoil ASA (Norsk Hydro Yankee) 7.150% due 01/15/2029 224,000 294,404 3.1%
 
  689,812 7.3%
 
Financials  
 
    Affiliated Managers Group 3.500% due 08/01/2025 250,000 244,949 2.6%
    Bank Of New York Mellon MTN 3.300% due 08/23/2029 250,000 237,825 2.5%
    Cincinnati Financial 6.920% due 05/15/2028 250,000 310,685 3.3%
    UBS AG Stamford CT 7.750% due 09/01/2026 200,000 245,878 2.6%
 
  1,039,337 11.0%
 
Health Care  
 
    Becton Dickinson 6.700% due 08/01/2028 240,000 278,314 3.0%
    Johnson & Johnson 4.950% due 05/15/2033 226,000 262,214 2.8%
    Merck & Co. (Schering) 6.500% due 12/01/2033 215,000 279,355 3.0%
    Pharmacia 6.500% due 12/01/2018 100,000 103,108 1.1%
    Teva Pharmaceutical 3.650% due 11/10/2021 250,000 239,431 2.5%
 
  1,162,422 12.4%
 
Industrials  
 
    Boeing 6.125% due 02/15/2033 215,000 274,953 2.9%
    Deere & Co. 8.100% due 05/15/2030 95,000 132,743 1.4%
 
  407,696 4.3%
 
Materials  
 
    Air Products & Chemicals 8.750% due 04/15/2021 50,000 57,707 0.6%
 
  57,707 0.6%
 
Technology  
 
    Apple 4.500% due 02/23/2036 350,000 381,518 4.0%
    Intel Corp 4.000% due 12/15/2032 360,000 375,824 4.0%
    Microsoft Corp 4.200% due 11/03/2035 350,000 373,374 4.0%
 
  1,130,716 12.0%
 
Utilities  
 
    Entergy Louisiana 5.400% due 11/01/2024 200,000 221,471 2.4%
    Florida Power & Light 5.950% due 10/01/2033 100,000 123,818 1.3%
    Puget Sound Energy 7.020% due 12/01/2027 237,000 292,248 3.1%
 
  637,537 6.8%
 
Total Corporate Bonds     $5,613,341 59.7%
 
 
Government Bonds – 14.0% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Foreign Government Bonds  
 
    Quebec Canada Yankee 7.125% due 02/09/2024 175,000 210,843 2.2%
 
  210,843 2.2%
 
United States Treasury Bonds  
 
    United States Treasury Bond 5.250% due 02/15/2029 170,000 207,500 2.2%
    United States Treasury Bond 6.125% due 08/15/2029 225,000 295,603 3.1%
    United States Treasury Bond 6.250% due 05/15/2030 75,000 100,649 1.1%
    United States Treasury Bond 5.375% due 02/15/2031 400,000 505,937 5.4%
 
  1,109,689 11.8%
 
Total Government Bonds     $1,320,532 14.0%
 
Municipal Bonds – 19.9% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
General Obligation  
 
    Blaine Co. ID SCD #61 Hailey 5.250% due 08/01/2020 250,000 261,755 2.8%
    Dell Rapids SCD 49-3 6.257% due 01/15/2030 200,000 213,290 2.3%
    Dupage Co. IL SCD #502 5.500% due 01/01/2026 150,000 152,733 1.6%
    Idaho Hsg & Fin GARVEE BAB A-2 5.379% due 07/15/2020 180,000 186,988 2.0%
    Milan Co. MI Area Schools 6.450% due 05/01/2024 150,000 155,943 1.7%
    San Marcos Texas ULTD GO BAB 6.028% due 08/15/2030 200,000 214,202 2.3%
    Springville UT GO BAB 5.300% due 05/01/2031 240,000 244,891 2.6%
 
  1,429,802 15.3%
 
Revenue  
 
    Johnson Co. KS Bldg Ls/Pr. Rev.BAB 4.600% due 09/01/2026 250,000 257,590 2.7%
    Oklahoma City Fin Auth Ed Lease Rev 6.600% due 09/01/2022 160,000 178,355 1.9%
 
  435,945 4.6%
 
Total Municipal Bonds     1,865,747 19.9%
 
Total Investments (Cost = $8,725,076)   8,799,620 93.6%
Other Assets (net of liabilities)     604,499 6.4%
Total Net Assets     $9,404,119 100.0%

 

Saturna Investment Trust, Sextant Core Fund

Common Stocks – 60.7% Number of Shares Cost Market Value Country¹ Percentage of Assets
 
Communications  
 
Internet Media
    Alphabet, Class A² 167 $130,853 $184,355 United States 1.6%
 
  130,853 184,355   1.6%
 
Consumer Discretionary  
 
Apparel, Footwear & Accessory Design
    VF 2,300 125,359 171,511 United States 1.4%
 
Home & Office Product Wholsalers
    Fastenal 2,000 96,023 109,440 United States 0.9%
 
Home Products Stores
    Lowe's 850 39,262 76,152 United States 0.7%
 
Specialty Apparel Stores
    Ross Stores 1,990 130,074 155,399 United States 1.3%
 
  390,718 512,502   4.3%
 
Consumer Staples  
 
Agricultural Producers
    Ingredion 600 74,054 78,384 United States 0.7%
 
Beverages
    PepsiCo 300 21,018 32,919 United States 0.3%
 
Household Products
    Procter & Gamble 650 41,180 51,038 United States 0.4%
    Unilever ADR 1,000 31,505 51,600 United Kingdom 0.4%
  72,685 102,638   0.8%
 
Packaged Food
    Nestle ADR 1,500 108,875 119,295 Switzerland 1.0%
 
  276,632 333,236   2.8%
 
Energy  
 
Exploration & Production
    CNOOC ADR 640 80,876 91,200 China 0.8%
    ConocoPhillips 2,240 114,403 121,654 United States 1.0%
    195,279 212,854   1.8%
 
Integrated Oils
    Statoil ADR 6,500 113,335 147,095 Norway 1.2%
    Total ADR 2,332 125,487 132,201 France 1.1%
    238,822 279,296   2.3%
 
  434,101 492,150   4.1%
 
Financials  
 
Banks
    PNC Financial Services Group 1,590 115,896 250,679 United States 2.1%
    Toronto-Dominion Bank 3,715 150,875 215,359 Canada 1.8%
    266,771 466,038   3.9%
 
Consumer Finance
    Ally Financial 6,600 134,777 184,140 United States 1.5%
 
Diversified Banks
    Citigroup 1,400 105,606 105,686 United States 0.9%
    JP Morgan Chase 1,750 153,563 202,125 United States 1.7%
    Mitsubishi UFJ Financial ADR 21,450 137,152 152,509 Japan 1.3%
    396,321 460,320   3.9%
 
Life Insurance
    MetLife 2,300 123,706 106,237 United States 0.9%
    Prudential Financial 1,000 114,997 106,320 United States 0.9%
    238,703 212,557   1.8%
 
P&C Insurance
    American International Group 2,000 119,048 114,680 United States 1.0%
    Chubb 1,130 151,600 160,370 Switzerland 1.3%
    270,648 275,050   2.3%
 
  1,307,220 1,598,105   13.4%
 
Health Care  
 
Biotech
    Amgen 970 155,052 178,257 United States 1.5%
    Celgene² 1,200 126,528 104,544 United States 0.9%
    281,580 282,801   2.4%
 
Large Pharma
    Johnson & Johnson 1,200 91,914 155,856 United States 1.3%
    Novo Nordisk ADR 2,000 18,098 102,960 Denmark 0.9%
    Pfizer 3,980 126,577 144,514 United States 1.2%
    236,589 403,330   3.4%
 
Life Science Equipment
    Abbott Laboratories 2,700 97,630 162,891 United States 1.4%
 
  615,799 849,022   7.2%
 
Industrials  
 
Commercial & Residential Building Equipment & Systems
    Honeywell International 1,000 51,734 151,110 United States 1.3%
 
Factory Automation Equipment
    Sensata Technologies Holding² 3,300 138,635 174,438 United States 1.5%
 
Flow Control Equipment
    Parker Hannifin 850 81,846 151,699 United States 1.3%
 
Rail Freight
    Canadian National Railway 1,600 40,237 123,792 Canada 1.0%
 
  312,452 601,039   5.1%
 
Materials  
 
Basic & Diversified Chemicals
    Praxair 1,000 79,815 149,750 United States 1.3%
 
Containers & Packaging
    3M 975 83,159 229,622 United States 1.9%
 
Non Wood Building Materials
    Carlisle 1,200 127,355 123,492 United States 1.0%
 
Specialty Chemicals
    PPG Industries 1,100 119,643 123,684 United States 1.0%
    RPM International 3,000 90,470 149,310 United States 1.3%
    210,113 272,994   2.3%
 
  500,442 775,858   6.5%
 
Technology  
 
Application Software
    SAP ADR 1,500 125,571 156,750 Germany 1.3%
    Tencent Holdings ADR 2,100 67,036 115,269 China 1.0%
    192,607 272,019   2.3%
 
Communications Equipment
    Apple 1,000 94,574 178,120 United States 1.5%
 
Computer Hardware & Storage
    HP 8,000 118,990 187,120 United States 1.6%
 
Infrastructure Software
    CA 5,100 160,585 179,010 United States 1.5%
    Oracle 2,000 74,000 101,340 United States 0.8%
    234,585 280,350   2.3%
 
Semiconductor Devices
    Infineon Technologies ADR 5,275 99,909 143,533 United States 1.2%
    Intel 3,100 109,565 152,799 United States 1.3%
    NXP Semiconductors² 900 89,118 112,194 Netherlands 0.9%
    Qualcomm 1,750 102,908 113,750 United States 1.0%
    Xilinx 1,700 68,620 121,125 United States 1.0%
    470,120 643,401   5.4%
 
Semiconductor Manufacturing
    Taiwan Semiconductor ADR 3,500 37,159 151,725 Taiwan 1.3%
 
  1,148,035 1,712,735   14.4%
 
Utilities  
 
Integrated Utilities
    NextEra Energy 1,000 72,153 152,150 United States 1.3%
 
  72,153 152,150   1.3%
 
Total Common Stocks   $5,188,405 $7,211,152   60.7%
 
Corporate Bonds – 21.2% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Communications  
 
    America Movil 5.000% due 03/30/2020 $100,000 $103,860 0.9%
    Bellsouth Capital Funding 7.875% due 02/15/2030 150,000 188,077 1.6%
    Vodafone 4.625% due 07/15/2018 200,000 201,713 1.7%
 
  493,650 4.2%
 
Consumer Discretionary  
 
    ADT 4.125% due 06/15/2023 150,000 145,875 1.2%
    Stanford University 4.013% due 05/01/2042 100,000 105,089 0.9%
    Walmart 1.950% due 12/15/2018 100,000 99,683 0.8%
 
  350,647 2.9%
 
Financials  
 
    General Electric Capital 5.350% due 04/15/2022 101,000 107,208 0.9%
    HSBC Holdings 4.250% due 03/14/2024 150,000 151,895 1.3%
    Jefferies Group 5.125% due 04/13/2018 200,000 200,635 1.7%
    PartnerRe Finance B 5.500% due 06/01/2020 100,000 104,465 0.8%
 
  564,203 4.7%
 
Health Care  
 
    Becton Dickinson 3.125% due 11/08/2021 100,000 98,789 0.8%
    Celgene Corp 2.875% due 08/15/2020 140,000 139,637 1.2%
    Gilead Sciences 3.700% due 04/01/2024 250,000 253,741 2.1%
 
  492,167 4.1%
 
Industrials  
 
    Legrand France Yankee 8.500% due 02/15/2025 170,000 214,611 1.8%
 
  214,611 1.8%
 
Materials  
 
    Air Products & Chemicals 4.375% due 08/21/2019 100,000 102,675 0.9%
 
  102,675 0.9%
 
Technology  
 
    Cisco Systems 2.900% due 03/04/2021 100,000 100,199 0.9%
    Qualcomm 3.250% due 05/20/2027 220,000 205,718 1.7%
 
  305,917 2.6%
 
Total Corporate Bonds     $2,523,870 21.2%
 
Government Bonds – 9.4% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
United States Treasury Notes  
 
    United States Treasury Note 1.500% due 06/15/2020 $150,000 $147,217 1.2%
    United States Treasury Note 2.125% due 08/31/2020 204,000 202,797 1.7%
    United States Treasury Note 2.000% due 11/30/2022 250,000 242,871 2.0%
    United States Treasury Note 1.625% due 04/30/2023 106,000 100,638 0.9%
    United States Treasury Note 2.750% due 11/15/2023 350,000 350,629 2.9%
    United States Treasury Note 2.000% due 05/31/2024 80,000 76,490 0.7%
 
Total Government Bonds     1,120,642 9.4%
         
         
 
Municipal Bonds – 4.6% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
General Obligation  
 
    City of Phoenix AZ 5.269% due 07/01/2034 $100,000 $114,256 1.0%
    Lake Washington SD 414, WA BAB 4.906% due 12/01/2027 100,000 105,457 0.9%
    Skagit SD#1 4.613% due 12/01/2022 100,000 104,745 0.9%
 
  324,458 2.8%
         
 
Revenue  
 
    New York City Housing Dev Corp 2.650% due 05/01/2021 100,000 99,397 0.8%
    Tacoma WA Elec Sys Revenue 5.966% due 01/01/2035 100,000 116,424 1.0%
 
  215,821 1.8%
 
Total Municipal Bonds   $540,279 4.6%
 
Total Investments (Cost = $9,453,851) 11,395,943 95.9%
Other Assets   490,162 4.1%
Total Net Assets   $11,886,104 100.0%
¹ Country of domicile
² Non-income producing
ADR: American Depository Receipt

 

Saturna Investment Trust, Sextant Global High Income Fund

Common Stocks – 43.3% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Telecom Carriers
    Orange ADR 10,000 $170,100 France 1.9%
    SK Telecom ADR 6,200 150,970 South Korea 1.6%
 
  321,070   3.5%
 
Consumer Discretionary  
 
Apparel, Footwear & Acc Design
    VF 3,000 223,710 United States 2.4%
 
  223,710   2.4%
 
Energy  
 
Exploration & Production
    CNOOC ADR 1,700 242,250 China 2.6%
    Goodrich Petroleum² 138 1,432 United States 0.0%³
  243,682   2.6%
 
Integrated Oils
    Royal Dutch Shell ADR, Class A 3,800 240,426 Netherlands 2.6%
    Statoil ADR 12,000 271,560 Norway 2.9%
    Total ADR 3,800 215,422 France 2.4%
  727,408   7.9%
 
Oil & Gas Services & Equip
    National Oilwell Varco 4,200 147,378 United States 1.6%
 
  1,118,468   12.1%
 
Financials  
 
Banks
    Skandinaviska Enskilda Banken, Class A 13,000 152,607 Sweden 1.6%
 
Diversified Banks
    Itau Unibanco Holding ADR, Class A 22,000 342,540 Brazil 3.7%
 
  495,147   5.3%
 
Health Care  
 
Large Pharma
    GlaxoSmithKline ADR 3,100 112,561 United Kingdom 1.2%
    Novartis ADR 1,900 158,365 Switzerland 1.7%
 
  270,926   2.9%
 
Industrials  
 
Infrastructure Construction
    CCR 30,000 117,250 Brazil 1.3%
    Hopewell Highway Infrastructure 325,000 195,902 Hong Kong 2.1%
 
  313,152   3.4%
 
Materials  
 
Agricultural Chemicals
    Nutrien 3,200 157,600 Canada 1.7%
 
Base Metals
    South32 ADR 19,000 243,580 Australia 2.6%
 
Steel Raw Material Suppliers
    BHP Billiton ADR 6,000 279,000 Australia 3.0%
 
  680,180   7.3%
 
Technology  
 
Computer Hardware & Storage
    HP 10,000 233,900 United States 2.5%
 
Semiconductor Devices
    Microchip Technology 4,000 355,720 United States 3.9%
 
  589,620   6.4%
 
Total Common Stocks   $4,012,273   43.3%
 
Corporate Bonds – 31.3% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Communications  
 
    Puget Sound Energy (3 month LIBOR plus 2.53%)4 6.974% due 06/01/2067 $200,000 $198,000 United States 2.1%
    T-Mobile 6.500% due 01/15/2026 250,000 268,125 United States 2.9%
 
  466,125   5.0%
 
Consumer Discretionary  
 
    ADT 4.125% due 06/15/2023 150,000 145,875 United States 1.6%
    GAP 5.950% due 04/12/2021 100,000 106,029 United States 1.1%
    Rent-A-Center 6.625% due 11/15/2020 200,000 184,000 United States 2.0%
 
  435,904   4.7%
 
Consumer Staples  
 
    Grupo Bimbo 4.875% due 06/27/2044 200,000 196,578 Mexico 2.1%
 
  196,578   2.1%
 
Energy  
 
    Petrobras International Finance 6.875% due 01/20/2040 50,000 48,737 Brazil 0.5%
    Petrobras International Finance 6.750% due 01/27/2041 80,000 77,280 Brazil 0.9%
 
  126,017   1.4%
 
Financials  
 
    Canadian Imperial Bank 3.420% due 01/26/2026 CAD 250,000 197,793 Canada 2.1%
    Jefferies Group 5.125% due 01/20/2023 250,000 265,658 United States 2.9%
    Lincoln National 6.050% due 04/20/2067 250,000 236,250 United States 2.5%
    Royal Bank of Scotland 6.125% due 12/15/2022 200,000 213,264 United Kingdom 2.3%
 
  912,965   9.8%
 
Industrials  
 
    Burlington Northern Santa Fe 5.050% due 03/01/2041 200,000 226,328 United States 2.4%
 
  226,328   2.4%
 
Materials  
 
    Allegheny Technologies 7.875% due 08/15/2023 150,000 163,125 United States 1.8%
    Anglogold Ashanti Holdings 5.375% due 04/15/2020 100,000 103,401 South Africa 1.1%
 
  266,526   2.9%
 
Technology  
 
    Hewlett Packard 4.650% due 12/09/2021 100,000 104,600 United States 1.2%
    Nokia 5.375% due 05/15/2019 165,750 169,527 Finland 1.8%
 
  274,127   3.0%
 
Total Corporate Bonds     $2,904,570   31.3%
 
Government Bonds - 15.8% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Foreign Government Bonds  
 
    Colombia Republic 8.375% due 02/15/2027 $125,000 $156,125 Colombia 1.7%
    Federal Republic of Brazil 8.500% due 01/05/2024 BRL 750,000 227,479 Brazil 2.5%
    Mexico Bonos Desarrollo 6.500% due 06/10/2021 MXN 85,000 437,034 Mexico 4.7%
 
  820,638   8.9%
 
United States Treasury Bond  
 
    Unitied States Treasury Bond 6.125% due 11/15/2027 500,000 637,656 United States 6.9%
 
  637,656   6.9%
 
Total Government Bonds     $1,458,294   15.8%
 
Municipal Bonds – 2.9% Coupon / Maturity Face Amount Market Value Country¹ Percentage of Assets
 
Revenue  
 
    Colony TX NFM Sales Tax Revenue 7.000% due 10/01/2027 $100,000 $103,510 United States 1.1%
    Colony TX NFM Sales Tax Revenue 7.250% due 10/01/2033 50,000 51,815 United States 0.6%
    Colony TX NFM Sales Tax Revenue 7.625% due 10/01/2042 50,000 54,955 United States 0.6%
    Puerto Rico Aqueduct & Sewer Rev 5.000% due 07/01/2019 85,000 60,881 Puerto Rico 0.6%
 
  $271,161   2.9%
 
Warrants – 0.0%   Number of Shares Market Value Country¹ Percentage of Assets
 
Energy  
 
Exploration & Production
    Goodrich Petroleum Warrants²   1,179 $- United States 0.0%
 
  -   0.0%
 
Total Investments (Cost = $7,909,935) $8,646,298   93.3%
Other assets (net of liabilities)   622,098   6.7%
Total Net Assets     $9,268,396   100.0%
¹ Country of domicile
² Non-income producing
³ Less than 0.05%
4 Variable rate security. The interest rate represents the rate in effect at February 28, 2018 and resets periodically based on the parenthetically disclosed reference rate and spread.
ADR: American Depository Receipt

 

Saturna Investment Trust, Sextant Growth Fund

Common Stocks – 97.4% Number of Shares Market Value Percentage of Assets
 
Communications  
 
Internet Based Services
    Booking Holdings¹ 400 $813,616 2.1%
 
Internet Media
    Alphabet, Class A¹ 1,998 2,205,632 5.7%
    Facebook, Class A¹ 7,537 1,343,998 3.4%
  3,549,630 9.1%
 
  4,363,246 11.2%
 
Consumer Discretionary  
 
Airlines
    Alaska Air 7,422 478,719 1.2%
 
Apparel, Footwear & Accessory Design
    Nike, Class B 16,144 1,082,132 2.8%
    VF 6,500 484,705 1.2%
  1,566,837 4.0%
 
E-Commerce Discretionary
    Amazon.com¹ 1,529 2,312,536 5.9%
 
Home Improvement
    Stanley Black & Decker 9,284 1,477,920 3.8%
 
Home Products Stores
    Home Depot 6,264 1,141,739 2.9%
    Lowe's 4,700 421,073 1.1%
  1,562,812 4.0%
 
Other Commercial Services
    Ecolab 6,243 814,399 2.1%
 
Restaurants
    Starbucks 14,674 837,886 2.2%
 
Specialty Apparel Stores
    Ross Stores 11,600 905,844 2.3%
    TJX Companies 5,539 457,965 1.2%
  1,363,809 3.5%
 
Toys & Games
    Hasbro 3,500 334,495 0.9%
 
  10,749,413 27.6%
 
Consumer Staples  
 
Food & Drug Stores
    CVS Health 10,000 677,300 1.7%
 
Mass Merchants
    Costco Wholesale 4,883 932,165 2.4%
 
  1,609,465 4.1%
 
Financials  
 
Consumer Finance
    Ally Financial 34,000 948,600 2.4%
    FLEETCOR Technologies¹ 4,361 871,895 2.3%
    Mastercard, Class A 8,914 1,566,724 4.0%
  3,387,219 8.7%
 
Diversified Banks
    JP Morgan Chase 12,916 1,491,798 3.8%
 
  4,879,017 12.5%
 
Health Care  
 
Biotech
    Amgen 4,002 735,447 1.9%
    Celgene¹ 9,000 784,080 2.0%
  1,519,527 3.9%
 
Large Pharma
    Bristol-Myers Squibb 10,000 662,000 1.7%
 
Life Science Equipment
    Abbott Laboratories 20,799 1,254,804 3.2%
 
Medical Devices
    Edwards Lifesciences¹ 5,700 761,919 2.0%
    Stryker 3,000 486,480 1.2%
  1,248,399 3.2%
 
  4,684,730 12.0%
 
Industrials  
 
Commercial & Residential Building Equipment & Systems
    Honeywell International 5,000 755,550 1.9%
 
Electrical Components
    TE Connectivity 4,000 412,360 1.1%
 
Factory Automation Equipment
    Sensata Technologies Holding¹ 7,000 370,020 1.0%
 
  1,537,930 4.0%
 
Materials  
 
Specialty Chemicals
    DowDuPont 8,000 562,400 1.5%
    RPM International 21,400 1,065,078 2.7%
 
      1,627,478 4.2%
 
Technology  
 
Application Software
    Adobe Systems¹ 11,000 2,300,430 5.9%
 
Communications Equipment
    Apple 14,320 2,550,678 6.5%
    Juniper Networks 13,000 333,580 0.9%
  2,884,258 7.4%
 
Infrastructure Software
    Microsoft 18,920 1,774,128 4.6%
    Oracle 15,050 762,584 1.9%
  2,536,712 6.5%
 
Semiconductor Devices
    Qualcomm 12,000 780,000 2.0%
 
  8,501,400 21.8%
 
Total investments (Cost = $21,857,422) 37,952,679 97.4%
Other assets (net of liabilities)   995,423 2.6%
Total net assets   $38,948,102 100.0%
¹ Non-income producing

 

Saturna Investment Trust, Sextant International Fund

Common Stocks – 94.7% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Telecom Carriers
    BCE 50,000 $2,181,500 Canada 3.3%
    SK Telecom ADR 22,000 535,700 South Korea 0.8%
    Telus 50,000 1,805,000 Canada 2.8%
 
  4,522,200   6.9%
 
Consumer Discretionary  
 
Airlines
    Copa Holdings, Class A 30,000 4,079,100 Panama 6.2%
 
Automobiles
    Toyota Motor ADS 10,000 1,346,000 Japan 2.1%
 
E-Commerce Discretionary
    MercadoLibre 10,000 3,879,700 Argentina 5.9%
 
Lodging
    Belmond, Class A² 222,800 2,573,340 Bermuda 3.9%
 
Specialty Apparel Stores
    Industria de Diseno Textil, S.A. 30,000 908,021 Spain 1.4%
 
  12,786,161   19.5%
 
Consumer Staples  
 
Beverages
    Fomento Economico Mex ADR 30,000 2,769,000 Mexico 4.2%
 
Household Products
    Unilever ADR 50,000 2,580,000 United Kingdom 4.0%
 
  5,349,000   8.2%
 
Energy  
 
Integrated Oils
    Total ADR 45,435 2,575,710 France 3.9%
 
  2,575,710   3.9%
 
Financials  
 
Banks
    Australia & New Zealand Banking ADR 80,000 1,793,600 Australia 2.7%
    Toronto-Dominion Bank 50,000 2,898,500 Canada 4.4%
  4,692,100   7.1%
 
Diversified Banks
    Mitsubishi UFJ Financial ADR 200,000 1,422,000 Japan 2.2%
 
  6,114,100   9.3%
 
Health Care  
 
Health Care Supply Chain
    Sinopharm Group – H 250,000 1,095,419 China 1.7%
 
Large Pharma
    Novartis ADR 33,000 2,750,550 Switzerland 4.2%
    Novo Nordisk ADR 50,000 2,574,000 Denmark 3.9%
  5,324,550   8.1%
 
Medical Equipment
    Koninklijke Philips ADR 21,905 833,704 Netherlands 1.3%
 
Specialty Pharma
    Shire ADR 10,000 1,280,000 United Kingdom 1.9%
 
  8,533,673   13.0%
 
Materials  
 
Agricultural Chemicals
    Nutrien 15,600 768,300 Canada 1.2%
 
Basic & Diversified Chemicals
    BASF ADR 160,000 4,204,800 Germany 6.4%
 
  4,973,100   7.6%
 
Technology  
 
Application Software
    Dassault Systemes ADR 34,153 4,426,229 France 6.7%
    NICE Systems ADR 40,000 3,863,600 Israel 5.9%
  8,289,829   12.6%
 
Information Services
    Wolters Kluwer 100,000 5,063,923 Netherlands 7.7%
 
Semiconductor Mfg
    ASML Holding NY 20,000 3,907,800 Netherlands 6.0%
 
  17,261,552   26.3%
 
Total Investments (Cost = $31,351,510) $62,115,496   94.7%
Other Assets (net of liabilities)   3,466,155   5.3%
Total Net Assets   $65,581,651   100.0%

¹ Country of domicile
² Non-income producing
ADR: American Depository Receipt
ADS: American Depository Share

 

Saturna Investment Trust, Saturna Sustainable Equity Fund

Common Stocks – 95.6% Number of Shares Market Value Country¹ Percentage of Assets
 
Communications  
 
Entertainment Content
    Naspers ADR 2,600 143,390 South Africa 2.7%
    Walt Disney Company 500 51,580 United States 1.0%
  194,970   3.7%
 
Internet Media
    Alphabet, Class A² 122 134,678 United States 2.5%
 
Telecom Carriers
    China Mobile 6,000 55,883 Hong Kong 1.0%
    Telekomunikasi Indonesia ADR 2,000 58,060 Indonesia 1.1%
  113,943   2.1%
 
  443,591   8.3%
   
Consumer Discretionary  
 
Airlines
    Latam Airlines Group SA 3,600 58,536 Chile 1.1%
 
Apparel, Footwear & Accessory Design
    Nike, Class B 1,558 104,433 United States 1.9%
    Samsonite International 24,900 108,096 Luxembourg 2.0%
  212,529   3.9%
 
Auto Parts
    Valeo 1,400 90,509 France 1.7%
 
Automobiles
    Toyota Motor ADR 1,000 134,600 Japan 2.5%
 
Home Products Stores
    Home Depot 850 154,930 United States 2.9%
 
Other Commercial Services
    Ecolab 723 94,315 United States 1.8%
 
Restaurants
    Starbucks 1,713 97,812 United States 1.8%
 
Specialty Apparel Stores
    TJX Companies 1,500 124,020 United States 2.3%
 
Toys & Games
    Hasbro 600 57,342 United States 1.1%
 
  1,024,593   19.1%
 
Consumer Staples  
 
Food & Drug Stores
    Clicks Group Limited ADR 1,500 42,675 South Africa 0.8%
 
Household Products
    Church & Dwight 2,400 118,056 United States 2.2%
    Kimberly-Clark de Mexico, Class A 53,000 96,324 Mexico 1.8%
    L'Oreal ADR 2,200 94,798 United States 1.8%
    Unilever 2,700 141,210 Netherlands 2.6%
  450,388   8.4%
 
Packaged Food
    Nestle ADR 1,000 79,530 Switzerland 1.5%
 
  572,593   10.7%
   
Energy  
 
Renewable Energy Equipment
    Siemens Gamesa Renewable Energy 3,500 55,369 Spain 1.1%
    Vestas Wind Systems 900 65,029 Denmark 1.2%
 
  120,398   2.3%
 
Financials  
 
Banks
    Toronto-Dominion Bank 2,800 162,316 Canada 3.0%
 
Consumer Finance
    Mastercard, Class A 824 144,826 United States 2.7%
 
Islamic Banking
    BIMB Holdings 100,000 106,936 Malaysia 2.0%
 
Life Insurance
    AIA Group 11,600 96,271 Hong Kong 1.8%
 
P&C Insurance
    Chubb 700 99,344 Switzerland 1.9%
 
  609,693   11.4%
   
Health Care  
 
Health Care Facilities
    Ramsay Health Care 2,308 114,626 Australia 2.1%
 
Large Pharma
    Novo Nordisk ADR 1,569 80,772 Denmark 1.5%
 
Medical Equipment
    Koninklijke Philips ADR 3,588 136,559 Netherlands 2.6%
 
  331,957   6.2%
 
Industrials  
 
Electrical Components
    Murata Manufacturing 1,000 139,271 Japan 2.6%
    TE Connectivity 351 36,184 Switzerland 0.7%
  175,455   3.3%
 
Electrical Power Equipment
    Siemens ADR 1,000 65,980 Germany 1.2%
 
Rubber & Plastic
    Hartalega Holdings BHD 40,000 118,885 Malaysia 2.2%
 
  360,320   6.7%
   
Materials  
 
Containers & Packaging
    3M 700 164,857 United States 3.1%
 
Precious Metal Mining
    Randgold Resources ADR 500 40,510 South Africa 0.7%
 
Specialty Chemicals
    Johnson Matthey 2,000 86,019 United Kingdom 1.6%
    Koninklijke DSM 600 61,950 Netherlands 1.2%
  147,969   2.8%
 
  353,336   6.6%
 
Technology  
 
Application Software
    Adobe Systems² 1,000 209,130 United States 3.9%
    Dassault Systemes ADR 1,506 195,178 France 3.7%
  404,308   7.6%
 
Communications Equipment
    Apple 1,000 178,120 United States 3.3%
 
Information Services
    Wolters Kluwer 1,000 50,639 Netherlands 1.0%
 
Infrastructure Software
    Microsoft 1,438 134,841 United States 2.5%
 
IT Services
    Accenture, Class A 900 144,909 Ireland 2.7%
 
Semiconductor Devices
    NXP Semiconductors² 1,300 162,058 Netherlands 3.0%
    STMicroelectronics 3,800 86,640 Switzerland 1.6%
  248,698   4.6%
 
Semiconductor Manufacturing
    Taiwan Semiconductor ADR 3,250 140,887 Taiwan 2.6%
 
  1,302,402   24.3%
 
Total investments (Cost = $4,103,644) 5,118,883   95.6%
Other assets   237,292   4.4%
Total net assets   $5,356,175   100.0%
¹ Country of domicile
² Non-income producing
ADR: American Depository Receipt

 

Saturna Investment Trust, Saturna Sustainable Bond Fund

Asset-Backed Securities – 0.4% 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 $99,764 United States 0.4%
 
    99,764   0.4%
 
Total Asset-Backed Securities   99,764   0.4%
 
Corporate Bonds – 90.1% Coupon / Maturity Face Amount Market Value Country¹ Percentage of assets
 
Communications  
 
    America Movil² 6.00% due 06/09/2019 MXN 15,000,000 $768,459 Mexico 3.0%
    Puget Sound Energy (3 month LIBOR plus 2.53%)³ 6.974% due 06/01/2067 1,100,000 1,089,000 United States 4.2%
    Telecom Italia 7.175% due 06/18/2019 300,000 315,141 Luxembourg 1.2%
    Telus 3.200% due 04/05/2021 CAD 1,500,000 1,188,474 Canada 4.6%
    Vodafone Group 4.375% due 03/16/2021 250,000 259,560 United Kingdom 1.0%
 
  3,620,634   14.0%
 
Consumer Discretionary  
 
    Aramark Services 5.125% due 01/15/2024 600,000 612,000 United States 2.4%
    Barry Callebaut4 5.50% due 06/15/2023 500,000 538,940 Belgium 2.1%
    BMW Finance 2.75% due 04/25/2019 NOK 2,000,000 257,892 Netherlands 1.0%
    BMW US Capital 2.75% due 12/02/2019 AUD 200,000 156,149 Germany 0.6%
    Danone4 2.077% due 11/02/2021 500,000 482,369 France 1.9%
    Starbucks 2.45% due 06/15/2026 500,000 465,580 United States 1.8%
    Toyota Motor Credit 2.75% due 02/05/2028 150,000 144,911 Japan 0.5%
    Toyota Motor Credit 3.00% due 03/20/2030 500,000 488,332 Japan 1.9%
 
  3,146,173   12.2%
 
Consumer Staples  
 
    BRF² 3.95% due 05/22/2023 500,000 474,850 Brazil 1.8%
    BRF² 4.75% due 05/22/2024 200,000 194,940 Brazil 0.8%
    Nestle Holdings 2.75% due 04/15/2020 NOK 3,000,000 391,761 Switzerland 1.5%
 
  1,061,551   4.1%
 
Energy  
 
    NextEra Energy Capital (3 month LIBOR plus 2.125%)³ 6.65% due 06/15/2067 1,225,000 1,189,059 United States 4.6%
 
  1,189,059   4.6%
 
Financials  
 
    BanColombia 5.95% due 06/03/2021 500,000 535,625 Colombia 2.1%
    Canadian Imperial Bank 3.42% due 01/26/2026 CAD 900,000 712,054 Canada 2.7%
    Chubb (3 month LIBOR plus 2.25%)³ 6.375% due 04/15/2037 1,100,000 1,100,000 Switzerland 4.3%
    Emirates² 6.00% due 10/08/2019 NZD 750,000 559,895 United Arab Emirates 2.2%
    First Abu Dhabi Bank² 3.00% due 03/30/2022 1,000,000 977,828 United Arab Emirates 3.8%
    Hanmi Financial5 5.45% due 03/30/2027 1,000,000 1,028,750 United States 4.0%
    Hartford Financial Services Group (3 month LIBOR plus 2.125%)3,4 3.164% due 02/12/2047 1,200,000 1,173,000 United States 4.5%
    Homestreet 6.50% due 06/01/2026 500,000 520,319 United States 2.0%
    Iron Mountain 5.75% due 08/15/2024 1,000,000 995,000 United States 3.9%
    Lincoln National Corp 6.05% due 04/20/2067 1,300,000 1,228,500 United States 4.8%
    Townebank Portsmouth VA6 4.50% due 07/30/2027 600,000 606,461 United States 2.3%
 
  9,437,432   36.6%
 
Health Care  
 
    Koninklijke Philips 3.75% due 03/15/2022 350,000 355,919 Netherlands 1.4%
    Sanofi 4.00% due 03/29/2021 350,000 361,363 France 1.4%
 
  717,282   2.8%
 
Industrials  
 
    Ingersoll-Rand 2.625% due 05/01/2020 300,000 297,974 Luxembourg 1.2%
 
  297,974   1.2%
 
Materials  
 
    Koninklijke DSM² 1.00% due 04/09/2025 EUR 1,000,000 1,230,549 Netherlands 4.8%
 
  1,230,549   4.8%
 
Technology  
 
    Apple 3.60% due 06/10/2026 AUD 750,000 591,248 United States 2.3%
    Apple² 2.65% due 06/10/2020 AUD 500,000 389,899 United States 1.5%
    MSCI² 5.75% due 08/15/2025 450,000 472,500 United States 1.9%
    MSCI4 5.75% due 08/15/2025 150,000 157,500 United States 0.6%
    Nokia OYJ 3.375% due 06/12/2022 800,000 777,920 Finland 3.0%
 
  2,389,067   9.3%
 
Utilities  
 
    United Utilities 4.55% due 06/19/2018 59,000 59,330 United Kingdom 0.2%
    United Utilities 5.375% due 02/01/2019 75,000 76,744 United Kingdom 0.3%
 
  136,074   0.5%
 
Total Corporate Bonds     23,225,795   90.1%
 
 
Government Bonds – 5.5% Coupon / Maturity Face Amount Market Value Country¹ Percentage of assets
 
Foreign Government Bonds  
 
    Mexico Bonos Desarrollo 6.50% due 06/10/2021 MXN 175,000 $899,775 Mexico 3.5%
    New Zealand Government² 3.00% due 04/15/2020 NZD 700,000 516,388 New Zealand 2.0%
 
  1,416,163   5.5%
 
Total Government Bonds     1,416,163   5.5%
 
Total investments (Cost = $24,822,956) 24,741,722   96.0%
Other assets (net of liabilities)   1,039,127   4.0%
Total net assets     $25,780,848   100.0%

¹ Country of risk

² Security was purchased pursuant to Regulation S under the Securities Act of 1933 which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Trust's Board of Trustees. At February 28, 2018, the aggregate value of these securities was $5,585,306 representing 21.7% of net assets.

³ Variable rate security. The interest rate represents the rate in effect at February 28, 2018 and resets periodically based on the parenthetically disclosed reference rate and spread.

4 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 February 28, 2018, the net value of these securities was $2,351,809 representing 9.1% of net assets.

5 Hanmi Financial is a fixed to float bond and the interest rate represents the rate in effect at February 28, 2018. The bond has a fixed rate until March of 2022 when the interest rate will update to the 3 month LIBOR plus 3.315% and will reset periodically.

6 Townebank Portsmouth VA is a fixed to float bond and the interest rate represents the rate in effect at February 28, 2018. The bond has a fixed rate until July of 2022 when the interest rate will update to the 3-month LIBOR plus 2.55% and will reset periodically.

 

Saturna Investment Trust, Idaho Tax-Exempt Fund

Tax-Exempt Municipal Bonds – 93.1% Coupon / Maturity Face Amount Market Value Percentage of Assets
 
Financial Services  
 
    Idaho Bond Bank Authority 4.00% due 09/15/2019 $90,000 $91,284 0.5%
    Idaho Bond Bank Authority 4.00% due 09/15/2032 405,000 426,518 2.5%
    Idaho Housing & Finance Rev 3.00% due 07/01/2036 475,000 467,234 2.8%
 
  985,036 5.8%
 
General Obligation  
 
    Ada & Canyon Cos ID JSD #2 Meridian 5.00% due 08/15/2032 325,000 373,734 2.2%
    Ada & Canyon Cos ID JSD #3 Kuna 5.00% due 09/15/2019 240,000 240,329 1.4%
    Ada & Canyon Cos ID JSD #3 Kuna 4.00% due 08/15/2022 400,000 434,272 2.6%
    Ada & Canyon Cos ID JSD #3 Kuna 4.00% due 09/15/2027 100,000 110,776 0.7%
    Adams & Washington Cos ID JSD #432 4.00% due 08/15/2019 100,000 101,155 0.6%
    Bingham Co ID SCD #52 Snake HS 4.00% due 09/01/2020 250,000 253,310 1.5%
    Bingham Co ID SCD #52 Snake HS 4.00% due 09/01/2027 200,000 202,648 1.2%
    Boise ID ISD 5.00% due 08/01/2030 600,000 708,666 4.2%
    Bonneville & Bingham Cos JSD #93 5.00% due 09/15/2031 200,000 224,968 1.3%
    Bonneville & Bingham Cos JSD #93 5.00% due 09/15/2029 250,000 281,442 1.7%
    Bonneville Co ID SCD #91 4.00% due 09/15/2026 35,000 37,331 0.2%
    Bonneville Co ID SCD #91 3.75% due 09/15/2032 285,000 291,204 1.7%
    Bonneville Co ID SCD #91 Pre Refund 4.00% due 09/15/2026 15,000 16,295 0.1%
    Boundary County ID SCD #101 4.00% due 08/15/2021 240,000 242,849 1.4%
    Canyon Co ID SCD #134 Middleton 4.00% due 09/15/2028 400,000 435,812 2.6%
    Canyon Co ID SCD #135 Notus 3.25% due 09/15/2031 290,000 295,052 1.8%
    Canyon Co ID SCD #135 Notus 3.25% due 09/15/2032 170,000 172,846 1.0%
    Canyon Co ID SCD #139 Vallivue 5.00% due 09/15/2024 260,000 292,939 1.7%
    Cariboo Franklin Bannock JSD #148 3.25% due 09/15/2035 300,000 301,467 1.8%
    Cassia Oneida Twin Falls JSD #151 3.375% due 09/15/2034 160,000 159,898 1.0%
    Jefferson & Madison SCD #251 Rigby 4.25% due 09/01/2024 100,000 100,000 0.6%
    Kootenai Co ID SCD #271 CDA 4.00% due 09/15/2025 165,000 177,754 1.1%
    Kootenai Co ID SCD #273 4.00% due 08/15/2031 265,000 285,514 1.7%
    Kootenai-Shoshone ID Area Libraries 4.25% due 08/01/2021 220,000 222,493 1.3%
    Latah Co ID SCD #281 Moscow Ser B 4.00% due 08/15/2027 100,000 109,254 0.6%
    Latah Co ID SCD #281 Moscow Ser B 4.00% due 08/15/2028 200,000 217,758 1.3%
    Latah Nez Perce Clearwater JSD #283 4.50% due 08/15/2027 190,000 191,965 1.1%
    Meridian Co. Id. SDC #321 5.00% due 09/15/2037 250,000 288,507 1.7%
    Sun Valley ID G.O. 3.35% due 09/15/2037 500,000 496,455 2.9%
    Twin Falls & Gooding Cos JSD #412 N 4.125% due 09/01/2023 50,000 54,011 0.3%
    Twin Falls & Gooding Cos JSD #412 R 4.125% due 09/01/2023 50,000 53,852 0.3%
    Twin Falls Co ID SCD #411 4.00% due 09/15/2027 170,000 184,860 1.1%
    Twin Falls Co ID SCD #411 4.25% due 09/15/2030 300,000 325,815 1.9%
    Twin Falls Co ID SCD #411 4.75% due 09/15/2039 200,000 220,256 1.3%
    Twin Falls Co ID SCD #411 Series A 4.25% due 09/15/2031 100,000 108,108 0.6%
    Twin Falls Co ID SCD #414 Kimberly 5.00% due 09/15/2031 670,000 783,994 4.6%
    Valley & Adams Cos ID JSD #421 3.00% due 08/01/2026 220,000 224,937 1.3%
 
  9,222,526 54.4%
 
Medical/Hospitals  
 
    Idaho Health Rev St. Luke's 6.75% due 11/01/2037 200,000 206,178 1.2%
    Idaho Health Rev Trinity Health Grp 3.25% due 12/01/2028 300,000 299,082 1.8%
 
  505,260 3.0%
 
Municipal Leases  
 
    Nez Perce County ID COPS 4.50% due 02/01/2021 115,000 115,288 0.7%
 
  115,288 0.7%
 
Pollution Control  
 
    Idaho Bond Bank Authority 4.30% due 09/01/2022 20,000 20,045 0.1%
    Idaho Bond Bank Authority 4.125% due 09/15/2023 20,000 20,044 0.1%
    Moscow ID Sewer Revenue 4.45% due 05/01/2028 200,000 201,038 1.2%
 
  241,127 1.4%
 
Power Generation  
 
    Idaho Falls ID Electric Revenue 6.75% due 04/01/2019 5,000 5,020 0.0%¹
 
  5,020 0.0%¹
 
Real Estate  
 
    Boise City Urban Renewal Lease Rev 5.00% due 12/15/2032 300,000 335,694 2.0%
    Idaho State Building Authority 5.00% due 09/01/2031 200,000 222,314 1.3%
    Idaho State Building Authority 5.00% due 09/01/2032 400,000 444,264 2.6%
    Post Falls ID LID SPA 5.00% due 05/01/2021 90,000 90,071 0.6%
 
  1,092,343 6.5%
 
State Education  
 
    Boise State University ID Revenue 5.00% due 04/01/2028 125,000 142,980 0.9%
    Boise State University ID Revenue 5.00% due 04/01/2032 560,000 642,421 3.8%
    Idaho State University Rev 4.00% due 04/01/2027 170,000 183,508 1.1%
    Idaho State University Rev 4.00% due 04/01/2030 245,000 259,034 1.5%
    Idaho State University Rev 3.00% due 04/01/2031 250,000 242,600 1.4%
    Idaho State University Rev 3.00% due 04/01/2032 160,000 154,101 0.9%
    North Idaho College Dormitory Rev 4.00% due 11/01/2030 285,000 303,570 1.8%
    University of Idaho Revenue 5.00% due 04/01/2028 225,000 239,206 1.4%
    University of Idaho Revenue 5.00% due 04/01/2032 455,000 498,116 2.9%
 
  2,665,536 15.7%
 
Transportation  
 
    Boise ID Airport Park Fac Rev 3.00% due 09/01/2028 210,000 210,208 1.3%
    Idaho Housing & Finance Rev 4.60% due 07/15/2023 250,000 253,007 1.5%
    Idaho Housing & Finance Rev 5.00% due 07/15/2027 50,000 52,342 0.3%
 
  515,557 3.1%
 
Water Supply  
 
    Chubbuck ID Water Revenue 4.00% due 09/01/2025 155,000 164,342 0.9%
    Payette Lakes Rec Wtr & Swr REV 4.00% due 08/01/2034 255,000 266,074 1.6%
 
  430,416 2.5%
 
Total investments (Cost = $15,773,211) 15,778,109 93.1%
Other assets (net of liabilities)     1,169,681 6.9%
Total net assets     $16,947,790 100.0%
¹ Amount is less than 0.05%

 

Notes to Schedule of Investments (unaudited)

1. Organization:

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

2. Significant Accounting Policies

a. Security valuation:

Under procedures approved by the Trust's Board of Directors, Saturna Capital, the Trust's investment adviser and administrator, has formed a Pricing Committee to administer the pricing and valuation of portfolio securities, including valuation of securities for which market quotations are not readily available.

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

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

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

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

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.

b. Fair Value Measurements Disclosure:

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.

The following is a summary of the inputs used as of February 28, 2018, in valuing the Funds' investments carried at value:

Funds

Level 1
Quoted Price

Level 2
Significant Observable Input

Level 3
Significant Unobservable Input

Total

Sextant Short-Term Bond

Corporate Bonds¹

$-

$7,415,537

$-

$7,415,537

Government Bonds¹

-

$2,224,570

-

$2,224,570

Total Assets

$-

$9,640,107

$-

$9,640,107

 

Sextant Bond Income

Corporate Bonds¹

$-

$5,613,341

$-

$5,613,341

Government Bonds¹

-

$1,320,532

-

$1,320,532

Municipal Bonds¹

-

$1,865,747

-

$1,865,747

Total Assets

$-

$8,799,620

$-

$8,799,620

 

Sextant Core

Common Stocks¹

$7,211,152 $- $- $7,211,152

Corporate Bonds¹

$- $2,523,870 $- $2,523,870

Government Bonds¹

$- $1,120,642 $- $1,120,642

Municipal Bonds¹

$- $540,279 $- $540,279

Total Assets

$7,211,152 $4,184,791 $- $11,395,943

 

Sextant Global High Income

Common Stocks

Communications $321,070 $- $- $321,070
Consumer Discretionary 223,710 - - 223,710
Energy 1,118,468 - - 1,118,468
Financials 342,540 152,607 - 495,147
Health Care 270,926 - - 270,926
Industrials - 313,152 - 313,152
Materials 680,180 - - 680,180
Technology 589,620 - - 589,620

Total Common Stocks

$3,546,514 $465,759 $- $4,012,273

Corporate Bonds¹

$- $2,904,570 $- $2,904,570

Government Bonds¹

$- $1,458,294 $- $1,458,294

Municipal Bonds¹

$- $271,161 $- $271,161

Warrants

$- $- $- $-

Total Assets

$3,546,514 $5,099,784 $- $8,646,298

 

Sextant Growth

Common Stocks¹

$37,952,679

$-

$-

$37,952,679

Total Assets

$37,952,679

$-

$-

$37,952,679

 

Sextant International

Common Stocks

    Communications

$4,522,200 $- $- $4,522,200

    Consumer Discretionary

11,878,140 908,021 - 12,786,161

    Consumer Staples

5,349,000 - - 5,349,000

    Energy

2,575,710 - - 2,575,710

    Financials

6,114,100 - - 6,114,100

    Health Care

7,438,254 1,095,419 - 8,533,673

    Materials

4,973,100 - - 4,973,100

    Technology

12,197,629 5,063,923 - 17,261,552

Total Assets

$55,048,133 $7,067,363 $- $62,115,496

 

Sustainable Equity

Common Stocks

    Communications

$387,708 $55,883 $- $443,591

    Consumer Discretionary

825,988 198,605 - 1,024,593

    Consumer Staples

476,269 96,324 - 572,593

    Energy

- 120,398 - 120,398

    Financials

406,486 203,207 - 609,693

    Health Care

217,331 114,626 - 331,957

    Industrials

102,164 258,156 - 360,320

    Materials

205,367 147,969 - 353,336

    Technology

1,251,763 50,639 - 1,302,402

Total Assets

$3,873,076 $1,245,807 $- $5,118,883

 

Sustainable Bond

Asset Backed Securities¹

$- $99,764 $- $99,764

Corporate Bonds¹

$- $23,225,795 $- $23,225,795

Government Bonds¹

$- $1,416,163 $- $1,416,163

Total Assets

$- $24,741,722 $- $24,741,722

 

Idaho Tax-Exempt

Municipal Bonds¹

$-

$15,778,109

$-

$15,778,109

Total Assets

$-

$15,778,109

$-

$15,778,109

¹ See Schedule of Investments for industry breakout.

During the period ended February 28, 2018, no Fund had transfers between Level 1, Level 2, and Level 3.

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 28, 2018, the Funds held positions in rights offerings as a result of the initial default distribution payment from the Goodrich Petroleum emergence from bankruptcy on October 12, 2016. Rights offerings are issued to existing shareowners of companies and allow shareowners to purchase additional company shares, generally at a discount to the current market price, prior to a set expiration date. As a result of exercising certain rights offerings, the Funds received warrants. Holders of warrants have the right to purchase additional securities directly from the issuer at a set exercise price, prior to a stated expiration date.

The effects of these derivative instruments on the Fund's financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations are presented in the tables below. The fair values of derivative instruments as of February 28, 2018, by risk category are as follows:

Global High Income Fund

Statement of Asset and Liabilities Location

Derivatives not designated as hedging instruments

Asset Derivatives

Investments in securities, at value

Warrants

$-

Total

 

$-

 

Global High Income Fund

Derivatives not designated as hedging instruments

Unrealized Gain

Warrants

$-

Total

$-

Federal Income Taxes:

The aggregate unrealized security gains and losses based on costs of investments for U.S. federal income tax purposes at February 28, 2018, were as follows:

 

Short-Term Bond

Bond Income

Cost of investments

$9,816,665 $8,725,076

Gross tax unrealized appreciation

224 201,061

Gross tax unrealized depreciation

(176,782) (126,517)

Net tax unrealized appreciation (depreciation)

$(176,558) $74,544

 

 

Core

Global High Income

Cost of investments $9,453,851 $7,909,935
Gross tax unrealized appreciation 2,104,044 1,075,962
Gross tax unrealized depreciation (161,952) (339,599)
Net tax unrealized appreciation (depreciation) $1,942,092 $736,363

 

 

Growth

International

Cost of investments $21,857,422 $31,351,510
Gross tax unrealized appreciation 16,395,739 31,387,422
Gross tax unrealized depreciation (300,482) (623,436)
Net tax unrealized appreciation (depreciation) $16,095,257 $30,763,986

 

 

Sustainable Equity

Sustainable Bond

Cost of investments

$4,103,644 $24,822,956

Gross tax unrealized appreciation

1,088,493 289,727

Gross tax unrealized depreciation

(73,254) (370,961)

Net tax unrealized appreciation (depreciation)

$1,015,239 $(81,234)

 

Idaho Tax-Exempt

Cost of investments

$15,773,211

Gross tax unrealized appreciation

166,803

Gross tax unrealized depreciation

(161,905)

Net tax unrealized appreciation (depreciation)

$4,898

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 events or transactions during the period that materially impacted the amounts or disclosures in the Funds' financial statements.

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 occurred 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 270.30a – 2(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/ Jane K. Carten
Jane K. Carten, President and Chief Executive Officer

Date: April 30, 2018

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 K. Carten
Jane K. Carten, President and Chief Executive Officer

Date: April 30, 2018

By:

/s/ Christopher Fankhauser
Christopher Fankhauser, Chief Financial Officer

Date: April 30, 2018

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