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SEXTANT
(Graphic Omitted)
MUTUAL FUNDS
July 10, 1998
Fellow Shareowners:
Japan's recession is deepening. Most other Asian economies are in financial
difficulty. Capital has fled, currency values collapsed and interest rates
jumped. The solutions appear long and painful. Europe's growth is modest and
unemployment is stubbornly high. Deflation may replace inflation at the center
of the world's economic worries. Can the US continue as the world's economic
anomaly for much longer? NO is the answer - the US economy is not immune to
world problems and neither are US markets. Stable prices, a strong currency and
continued economic growth persisted for the first half of 1998. So far, the
stock market continues up, seemingly ignorant of investment values. As
investors, our concerns grow when US trading partners cancel orders and our
imports become cheaper. World competition is fierce and US profit margins are
under pressure. The easier efficiencies have already been squeezed out of US
companies, and skilled labor is short in many areas. Today's high equity
valuations remain susceptible to threats from lower growth or earnings. Stock
prices fall substantially after company profit warnings or disappointments,
making us cautious about today's record high stock valuations. On the other
hand, the bond market views today's international problems as bullish for bond
prices. Domestic inflation, the main enemy of bond values, is vanquished.
Today's choppy economic seas are the rational for our four distinctly different
Sextant Funds. Our Sextant Funds employ a "fulcrum" advisory fee structure that
rewards or penalizes Saturna Capital for investment results. The four Funds pay
increased or decreased monthly advisory fees depending on relative performance
over the prior 12 months. For the twelve months ended May 31, 1998 comparative
total returns are:
Sextant Fund Total Return
-------------------------------------------------------------------------
vs. Morningstar Total Return
--------------------------------------------------------------------
Short-Term Bond 6.81% Short-Term Bonds 7.01% Bond Income 15.77% Long-Term
Bonds 12.23% Growth 12.18% Domestic Growth 23.16% International 19.81% Foreign
Stock 13.96% For the year, we are pleased to report the Bond Income Fund beat
its index by a substantial margin. The Sextant Short Term Bond Fund essentially
matched its Morningstar peer category. The International Fund also beat its
index by an exceptional margin. The Growth Fund's is now under-performing the
Morningstar Domestic Growth category after dramatically outperforming in 1997.
As a Fund family, Sextant Funds average performance rank places them above 59%
of comparable Morningstar ranked Funds. It has been an exciting year so far and
we are looking forward to the second half.
Thank you for investing with us.
RESPECTFULLY,
NICHOLAS KAISER, PRESIDENT PHELPS MCILVAINE, VICE PRESIDENT
(Manager, Sextant Growth; (Manager, Sextant Bond Income;
Sextant International) Sextant Short-Term Bond)
<PAGE>
SEXTANT SHORT-TERM BOND FUND
(GRAPHIC OMITTED)
(GRAPHIC OMITTED)
1998 Semi-Annual Report
May 31, 1998
INVESTMENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Rating* Issuer Percent Coupon/ Face Amount Market Value
Maturity
- - AUTO MANUFACTURING (5.1%)
BBB General Motors 9.625% 12/1/2000 100,000 108,200
- - BANKING (11.3%)
A+ Bank of America 9.375% 3/01/2001 53,845
50,000
A- Bankers Trust-NY 9.50% 6/14/2000 75,000 79,537
A Harris Bank Corp 9.375% 6/1/2001 100,000 108,570
------------ -------------
- - SUB-TOTAL - 225,000 241,953
- - FINANCE (16.5%)
A- Aristar 6.75% 8/15/2001 95,000 96,121
A Deluxe Corp 8.55% 2/15/2001 50,000 52,735
AA- Norwest Financial 7.25% 3/15/2000 100,000 102,160
A Travellers Property & Casualty 6.75% 4/15/2001 100,780
-------------
100,000
------------
- - SUB-TOTAL - 351,796
345,000
- - ELECTRIC UTILITY (7.5%)
A+ Mississippi Power Co. 6.625% 8/1/2000 60,000 59,808
A Pacific Gas & Electric 6.75% 12/1/2000 100,000 100,330
------------ -------------
- - SUB-TOTAL - 160,000 160,138
- - FOOD (2.5%)
A- Coca Cola Enterprises 7.875% 2/1/2002 52,790
50,000
- - OIL & GAS (3.60%)
A- Fina Oil & Chemical 6.875% 7/15/2001 75,000 76,369
- - INVESTMENT FINANCE (10.7%)
BBB+ Finovia Capital 5.98% 2/27/2001 75,000 74,310
AA- Merrill Lynch & Co. 6.00% 1/15/2001 100,000 100,030
A+ Morgan Stanley 9.375% 6/15/2001 50,000 54,070
------------ -------------
- - SUB-TOTAL - 225,000 228,410
- - PAPER & PAPER PRODUCTS (4.7%)
A Westvaco Corporation 90,000 100,485
9.65% 3/1/2002
- - RETAILING (5.0%)
A J.C. Penny & Co. 100,000 107,480
9.05% 3/1/2001
- - TELECOMMUNICATIONS (5.0%)
A Northern Telecom 8.75% 6/12/2001 100,000 107,190
- - TOBACCO (3.7%)
A Phillip Morris 9.25% 2/15/2000 75,000 78,030
- - U.S. GOVERNMENT (19.1%)
AAA U.S. Treasury Note 6.75% 4/30/2000 100,000 102,063
AAA U.S. Treasury Note 6.25% 4/30/2001 300,000 305,203
------------ -------------
- - SUB-TOTAL - 400,000 407,266
- - TOTAL INVESTMENTS (94.7%) (Cost = $2,010,805) $ 1,945,000 $ 2,020,106
============ =============
- - Other Assets (net of liabilities) (5.3%) 112,703
-------------
- - TOTAL NET ASSETS (100%) $ 2,132,809
=============
<FN>
*Ratings are the lesser of S&P or Moody's
</FN>
</TABLE>
Page 2
<PAGE>
SEXTANT SHORT-TERM BOND FUND
- -------------------------------
(Graphic Omitted)
(Graphic Omitted)
1998 Semi-Annual Report1998 Semi-Annual Report
- --------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data per share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
<S> <C> <C>
- - For the Six Months For the year ended November 30
--------------------------------
- - Ended May 31, 1998 1997
-------------------- --------------------------------
Net asset value at beginning of period $ 4.99 $ 5.00
-------------------- --------------------------------
Income From Investment Operations
Net Investment Income 0.14 0.27
Net gains or losses on securities
(both realized and unrealized) 0.02 (0.01)
-------------------- --------------------------------
Total From Investment Operations 0.16 0.26
-------------------- --------------------------------
Less Distributions
Dividends (from net investment income) (0.14) (0.27)
Distributions (from capital gains) 0.00 0.00
-------------------- --------------------------------
Total Distributions (0.14) (0.27)
-------------------- --------------------------------
Net asset value at end of period $ 5.01 $ 4.99
Total Return 3.16% 5.45%
Ratios / Supplemental Data
Net assets ($000), end of period $ 2,133 $ 2,508
Ratio of expenses to average net assets 0.30% 0.60%
Ratio of net investment income to average net assets 2.83% 5.58%
Portfolio turnover rate 24% 47%
<S> <C> <C>
- - Sept. 28. '95 (incep-
- - 1996 tion) to Nov. 30 '95*
----------------------- -----------------------
Net asset value at beginning of period $ 5.03 $ 5.00
----------------------- -----------------------
Income From Investment Operations
Net Investment Income 0.25 0.03
Net gains or losses on securities
(both realized and unrealized) (0.03) 0.03
----------------------- -----------------------
Total From Investment Operations 0.22 0.06
----------------------- -----------------------
Less Distributions
Dividends (from net investment income) ($0.25) ($0.03)
Distributions (from capital gains) 0.00 0.00
----------------------- -----------------------
Total Distributions (0.25) (0.03)
----------------------- -----------------------
Net asset value at end of period $ 5.00 $ 5.03
Total Return 4.85% 1.05%
Ratios / Supplemental Data
Net assets ($000), end of period $ 2,016 $ 878
Ratio of expenses to average net assets 0.85% 0.23%
Ratio of net investment income to average net assets 6.30% 0.68%
Portfolio turnover rate 100% 0%
<FN>
For the above periods, all or a portion of the operating expenses were waived.
If costs had not been waived, the resulting increase to expenses per share in
each period would have been $.01,$.02,$.02 and $.007. The increase to the ratio
of expenses to average monthly net assets would be .19%,.40%,.52% and .16%
respectively. *not annualized </FN>
</TABLE>
STATEMENT OF ASSETS AND LIABILITIES
AS OF MAY 31, 1998
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
<S> <C> <C>
Assets
Bond investments (cost $2,010,805) $2,020,106
Cash 70,523
Interest receivable 44,757
-----------
Total Assets - $2,135,386
==========
Liabilities
2,577
-----------
Other Liabilities
Total Liabilities - 2,577
----------
Net Assets 2,132,809
==========
Fund shares outstanding - 425,887
Analysis of Net Assets
Paid in capital (unlimited shares authorized , without par) 2,139,123
Accumulated net realized gain (loss) on investments (15,614)
Unrealized net appreciation on investments 9,300
-----------
Net Assets applicable to Fund shares outstanding 2,132,809
==========
Net Asset Value, Offering and Redemption price per share $ 5.01
</TABLE>
Page 3
<PAGE>
SEXTANT SHORT-TERM BOND FUND
- -------------------------------
(Graphic Omitted)
(Graphic Omitted)
1998 Semi-Annual Report1998 Semi-Annual Report
- --------------------------------------------------
STATEMENT OF OPERATIONS
For the six months ended May 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Interest income $ 78,423
Amortization of bond premiums
(11,876)
Accretion 47
---------
Gross investment income - $66,594
EXPENSES
Investment adviser and administration fee
6,483
Professional fees 2,285
Filing and registration fees
650
Printing and postage 586
Other expenses 379
---------
Total gross expenses 10,383
Less advisory fee waived (4,057)
---------
Net expenses - 6,326
-------
Net investment income - 60,268
-------
NET REALIZED GAIN ON INVESTMENTS
Proceeds from sales 919,226
Less cost of securities sold based on identified cost
912,310
---------
Realized net gain - 6,916
UNREALIZED GAIN ON INVESTMENTS
End of period 9,300
Beginning of period 5,463
---------
Decrease in unrealized gain for the period -
3,837
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATION -
$71,021
=======
</TABLE>
Page 4
<PAGE>
SEXTANT SHORT-TERM BOND FUND
- -------------------------------
(Graphic Omitted)
(Graphic Omitted)
1998 Semi-Annual Report
- -------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
- - Period Ended Year Ended
- - May 31, 1998 November 30,1997
-------------- ------------------
INCREASE IN NET ASSETS - -
Operations: - -
Net investment Income $ 60,268 $ 121,445
Net realized gain (loss) on investments (1,405)
6,916
Net increase in unrealized appreciation 1,028
------------------
3,837
--------------
Net increase in net assets from operations 121,068
------------------
71,021
--------------
Dividends to Shareowners from:
(121,530)
Net investment income (60,268)
-
------------------
Capital gains distributions -
--------------
(121,530)
------------------
(60,268)
--------------
Fund Share Transactions:
1,321,409
Proceeds from sales of shares 708,178
Value of shares issued in reinvestment of dividends 120,427
------------------
59,285
--------------
1,441,836
767,463
(949,884)
------------------
Cost of shares redeemed (1,153,695)
--------------
Net Increase in net assets from share transactions 491,952
------------------
(386,232)
--------------
Total increase (decrease) in net assets 491,490
(375,479)
NET ASSETS
Beginning of period 2,016,798
------------------
2,508,288
--------------
$ 2,508,288
==================
End of period $ 2,132,809
==============
Shares of the Fund Sold and Redeemed
Number of shares sold 265,939
141,358
Number of shares issued in reinvestment of dividends 24,218
------------------
11,832
--------------
290,157
153,190
Number of shares redeemed (229,833) (190,167)
-------------- ------------------
Net Increase (decrease) in
99,190
==================
Number of Shares Outstanding (76,643)
==============
</TABLE>
Page 5
<PAGE>
SEXTANT BOND INCOME FUNDSEXTANT BOND INCOME FUND
- ------------------------------------------------------
1998 Semi-Annual Report
- -------------------------
(Graphic Omitted)
(Graphic Omitted)
May 31, 1998
INVESTMENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
INVESTMENTS
RATING ISSUER COUPON/MATURITY FACE AMOUNT MARKET VALUE
- - BANKING (16.2%)
A- Chase Manhatten-Sub Notes 7.125% 6/15/2009 $ 50,000 $ 52,850
A Citicorp 7.25% 10/15/2011 50,000 52,865
A- Comerica Bank 7.125% 12/1/2013 50,000 50,761
AA- Norwest Financial Inc. 50,000 51,785
------------ -------------
6.85% 7/15/2009
- - SUB-TOTAL - 200,000 208,261
- - BEVERAGES (4.6%)
A- Seagram Co. Ltd 8.35% 1/15/2022 50,000 58,640
- - BUILDING (3.8%)
A+ Lowes Corp 7.00% 10/15/2023 50,000 49,465
- - ELECTRIC UTILITIES (12.0%)
A+ Alabama Power 7.75% 2/1/2023 50,000 51,530
BBB Commonwealth Edison 7.50% 7/1/2013 50,000 53,460
A+ Southern California Edison 6.90% 10/1/2018 50,000 49,410
------------ -------------
- - SUB-TOTAL - - 150,000 154,400
- - ELECTRONICS (4.1%)
BBB+ Phillips Electronics 50,000 52,855
7.25% 8/15/2013
- - FOOD (4.0%)
BBB- Nabisco Holdings - 7.55% 6/15/2015 50,000 51,015
- - INSURANCE (4.2%)
A Allstate - 7.50% 6/15/2013 50,000 54,475
- - INVESTMENT FINANCE (12.2%)
A Bear Sterns Co.s Inc. 7.00% 3/01/2007 50,000 51,985
A Dean Witter Discover 6.75% 10/15/2013 50,000 50,515
BBB Paine Webber Group 7.625% 2/15/2014 50,000 54,835
------------ -------------
- - SUB-TOTAL - - 150,000 157,335
- - MORTGAGE & REAL ESTATE SERVICE (13.3)
AAA Federal Home Loan Bank 6.53% due 7/23/2007 165,000 171,930
- - OIL & GAS (3.7%)
A Taxaco Capital - 8.625% 6/30/2010 40,000 48,208
- - PAPER PRODUCTS (4.2%)
BBB- Georgia Pacific - 7.70% 6/15/2015 50,000 53,665
- - RETAILING (8.0%)
A Gap - 6.90% 9/15/2007 50,000 52,295
BBB+ Rite Aid - 6.875% 8/15/2013 50,000 50,995
------------ -------------
- - SUB-TOTAL 100,000 103,290
- - TELECOMMUNICATIONS (4.0%)
A+ GTE - 6.90% 11/01/2008 50,000 51,635
- - TOTAL INVESTMENTS (94.3%) - Cost = $1,181,157 1,215,174
-------------
1,155,000
============
- - Other Assets (net of liabilities) (5.7%) - - - 72,944
-------------
- - Total Net Assets (100%) - - - $ 1,288,118
=============
<FN>
Ratings are the lesser of S&P or Moody's (unaudited)
</FN>
</TABLE>
Page 6
<PAGE>
SEXTANT BOND INCOME FUNDSEXTANT BOND INCOME FUND
- ------------------------------------------------------
1998 Semi-Annual Report
- -------------------------
(Graphic Omitted)
(Graphic Omitted)
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
Selected data per share of capital stock outstanding throughout the period:
<TABLE>
<CAPTION>
Six Months For the year ended November 30 Period 3/1/93
-------------------------------- ---------------
<S> <C> <C> <C>
Ended May 31, 1998 1997 1996
-------------------- -------------------------------- ---------------
Net asset value at beginning of period $ 4.83 $ 4.76 $ 4.91
-------------------- -------------------------------- ---------------
Income from investment operations
Net investment income 0.15 0.30 0.30
Net gains or losses on securities
(both realized and unrealized) 0.12 0.07 (0.12)
-------------------- -------------------------------- ---------------
Total From Investment Operations 0.27 0.37 0.18
-------------------- -------------------------------- ---------------
Less distributions
Dividends (from net investment income)
Non-taxable - - -
Taxable (0.15) (0.30) (0.30)
Distributions (from capital gains) 0.00 - (0.03)
-------------------- -------------------------------- ---------------
Total Distributions (0.15) (0.30) (0.33)
-------------------- -------------------------------- ---------------
Net asset value at end of period $ 4.95 $ 4.83 $ 4.76
==================== ================================ ===============
Total return 5.64% 8.24% 4.04%
Ratios/supplemental data
Net assets ($000), end of period $ 1,288 $ 1,092 $ 1,201
Ratio of expenses to average net assets 0.19% 0.47% 0.63%
Ratio of net investment income to average net assets 3.06% 6.85% 5.96%
Portfolio turnover rate 0% 51% 75%
<S> <C> <C> <C>
1995 1994 (Incepetion) to 11/30/93
-------- -------- --------------------------
Net asset value at beginning of period $ 4.39 $ 5.03 $ 5.00
-------- -------- --------------------------
Income from investment operations
Net investment income 0.24 0.25 0.16
Net gains or losses on securities
(both realized and unrealized) 0.52 (0.64) 0.04
-------- -------- --------------------------
Total From Investment Operations 0.76 (0.39) 0.20
-------- -------- --------------------------
Less distributions
Dividends (from net investment income)
Non-taxable (0.236) (0.25) (0.167)
Taxable (0.004) - -
Distributions (from capital gains) 0.00 0.00 (0.003)
-------- -------- --------------------------
Total Distributions (0.24) (0.25) (0.17)
-------- -------- --------------------------
Net asset value at end of period $ 4.91 $ 4.39 $ 5.03
======== ======== ==========================
Total return 17.69% (8.24)% 4.86%
Ratios/supplemental data
Net assets ($000), end of period $ 1,096 $ 1,456 $ 1,662
Ratio of expenses to average net assets 0.54% 0.41% 0.35%
Ratio of net investment income to average net assets 5.15% 5.48% 3.28%
Portfolio turnover rate 77% 74% 36%
<FN>
For each of the above periods, all or a portion of the operating expenses were
Waived. If these costs had not been waived, the resulting increases to expenses
Per share in each of the above periods would be $.01,$.03,$.03,$0.22,$0.13, and
$.03 respectively. The increase to the ratio of expenses to average monthly net
assets would be .29%,.63%,.70%,.60%,.51%, and 26%,respectively. *not annualized
</FN>
</TABLE>
STATEMENT OF ASSETS AND LIABILITIESSTATEMENT OF ASSETS AND LIABILITIES
For the Six Months Ended May 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
Assets
Bond investments (cost $1,181,157) $1,215,174 -
Cash 44,561 -
Interest receivable 26,523 -
Insurance deposit 400 -
Total Assets 1,286,658
-----------
Liabilities
Other Liabilities (1,460) -
Total Liabilities (1,460)
-----------
Net Assets $1,288,118
===========
Fund shares outstanding
Analysis of Net Assets 260,168
Paid in capital (unlimited shares authorized , without par) $1,335,925 -
Accumulated net realized gain (loss) on investments (81,816) -
Unrealized net appreciation on investments 34,009
Net Assets applicable to Fund shares outstanding 1,288,118
===========
Net Asset Value, Offering and Redemption price per share $ 4.95
===========
</TABLE>
<PAGE>
SEXTANT BOND INCOME FUNDSEXTANT BOND INCOME FUND
1998 Semi-Annual Report
STATEMENT OF OPERATIONSSTATEMENT OF OPERATIONS (GRAPHIC OMITTED) For the six
months ended May 31, 1998 <TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Investment income - -
Interest income $41,146
Amortization of bond premiums (904)
Accretion 31
--------
Gross investment income $40,273
Expenses
Investment adviser and administration fee 3,706
Professional fees 1,248
Filing and registration fees 504
Printing and postage 292
Other expenses 370
--------
Total gross expenses 6,120
--------
Less advisory fee waived (3,706)
--------
Net expenses 2,414
-------
Net investment income 37,859
-------
Net realized gain on investments
Proceeds from sales -
Less cost of securities sold based on identified cost -
--------
Realized net gain (loss) -
-------
Unrealized gain (loss) on investments
End of period 34,009
Beginning of period 3,969
--------
Increase in unrealized gain for the period 30,040
--------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $67,899
=======
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
- - Period ended May 31, 1998 Year ended Nov. 30, 1997
--------------------------- --------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 37,859 $ 73,291
- (11,717)
Net realized gain (loss) on investments
30,040 26,604
--------------------------- --------------------------
Net increase in unrealized appreciation
67,899 88,178
--------------------------- --------------------------
Net increase in net assets from operations
Dividends to Shareowners From:
(37,582) (73,332)
Net investment income
- -
--------------------------- --------------------------
Capital gains distributions
(37,582) (73,332)
--------------------------- --------------------------
Fund Share Transactions:
187,798 65,272
Proceeds from sales of shares
36,777 71,910
--------------------------- --------------------------
Value of shares issued in reinvestment of dividends
224,575 137,182
(59,013) (260,712)
--------------------------- --------------------------
Cost of shares redeemed
165,562 (123,530)
--------------------------- --------------------------
Net increase in net assets from share transactions
195,879 (108,684)
Total increase in net assets
NET ASSETS
1,092,239 1,200,923
--------------------------- --------------------------
Beginning of period
$ 1,288,118 $ 1,092,239
=========================== ==========================
End of period
Shares of the Fund Sold and Redeemed
38,396 14,054
Number of shares sold
7,491 15,448
--------------------------- --------------------------
Number of shares issued in reinvestment of dividends
45,887 29,502
(12,067) (55,536)
--------------------------- --------------------------
Number of shares redeemed
33,820 (26,034)
=========================== ==========================
Net Increase (decrease) in Number of Shares Outstanding
</TABLE>
<PAGE>
SEXTANT GROWTH FUNDSEXTANT GROWTH FUND
1998 Semi-Annual Report
(GRAPHIC OMITTED)
INVESTMENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Issue Number of Shares Cost Market Value
Common Stocks
BANKING (9.7%)
Washington Mutual Savings Bank 3,000 $ 44,124 $ 211,875
CONSTRUCTION (1.6%)
Butler Manufacturing 1,000 31,071 35,000
COMPUTERS (9.2%)
Adobe Systems 1,200 50,490 47,925
Award Software International* 2,500 29,148 29,063
3Com* 1,225 29,726 31,084
Hewlett-Packard 800 42,650 49,700
Oracle* 1,800 37,879 42,525
-------- -------------
SUB-TOTAL 189,894 200,297
ELECTRONICS (3.9%)
FLIR Systems* 2,500 27,611 46,875
Motorola 700 40,511 37,100
-------- -------------
SUB-TOTAL 68,122 83,975
INVESTMENTS (15.1%)
McDonald & Co. 6,000 94,957 180,000
Schwab, Charles 4,537 9,117 149,721
-------- -------------
SUB-TOTAL 104,074 329,721
MACHINERY (3.0%)
Regal Beloit 2,000 52,106 65,250
MEDICAL (9.8%)
Affymetrix* 1,000 26,863 26,875
Atria Communities* 3,500 49,091 61,688
Genentech* 1,000 37,225 69,000
Ligand Pharmaceuticals* 4,000 49,132 55,750
-------- -------------
SUB-TOTAL 162,311 213,313
METAL ORES (1.6%)
Cyprus Amax Minerals 2,200 54,541 34,925
OIL & GAS PRODUCTION (6.0%)
Atlantic Richfield 900 51,620 70,987
Noble Drilling* 2,000 14,212 59,000
-------- -------------
SUB-TOTAL 65,832 129,987
PAPER & PRODUCTS (2.3%)
Boise Cascade 1,500 47,431 50,063
POLLUTION CONTROL (1.8%)
Ionics* 900 36,864 40,275
RETAIL (4.5%)
Albertson's 1,200 26,255 55,575
Meyer (Fred)* 1,000 46,461 43,000
-------- -------------
SUB-TOTAL $ 72,716 98,575
</TABLE>
<PAGE>
SEXTANT GROWTH FUNDSEXTANT GROWTH FUND
1998 Semi-Annual Report
(Graphic Omitted)
INVESTMENT, CONT.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ISSUE Number of Shares Cost Market Value
TRANSPORTATION (12.8%)
Airborne Freight 4,000 43,332 149,000
Fritz Companies* 4,000 51,640 52,000
Halter Marine Group* 834 9,967 15,637
Trinity Industries 800 22,658 38,200
Wisconsin Central Transport* 1,000 32,250 23,437
---------- -------------
SUB-TOTAL 159,847 278,274
UTILITIES (2.0%)
Washington Water Power 2,000 37,078 43,250
---------- -------------
TOTAL INVESTMENTS (83.2%) $1,126,011 $ 1,814,783
========== =============
Other Assets (net of liabilities) (16.8%) 365,765
-------------
TOTAL NET ASSETS (100%) $ 2,180,548
=============
<FN>
* non-income producing
</FN>
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected data per share of capital stock outstanding throughout the period:
Six Months Ended For Year Ended November 30,
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- - May 31, 1998 1997 1996 1995 1994 1993
------------- ------ ------- ------- ------- -------
Net asset value at beginning of period $ 9.58 $ 7.92 $ 7.42 $ 5.82 $ 6.38 $ 5.93
------- ------- ------- ------- ------- -------
Income From Investment Operations
Net Investment Income 0.00 0.01 0.00 (0.03) (0.03) 0.01
Net gains or losses on securities
(both realized and unrealized) (0.10) 2.41 0.50 1.82 (0.53) 0.45
------------- ------ ------- ------- ------- -------
Total From Investment Operations (0.10) 2.40 0.50 1.79 (0.56) 0.46
Less Distributions
Dividends (from net investment income) 0.00 (0.01) 0.00 0.00 0.00 (0.01)
Distributions (from capital gains) 0.00 (0.73) 0.00 (0.19) 0.00 0.00
------------- ------ ------- ------- ------- -------
Total Distributions 0.00 (0.74) 0.00 (0.19) 0.00 (0.01)
------- ------- ------- ------- ------- -------
Net asset value at end of period $ 9.48 $ 9.58 $ 7.92 $ 7.42 $ 5.82 $ 6.38
Total Return 1.04% 30.30% 6.74% 30.76% 8.78% 7.76%
Ratios / Supplemental Data
- -------------------------------------------
Net assets ($000), end of period $2,182 $2,188 $1,616 $1,137 $1,010 $1,425
Ratio of expenses to average net assets 0.45% 1.04% 0.95% 1.63% 1.50% 1.40%
Ratio of net investment income to
average net assets -0.03% -0.12% 0.01% 0.45% 0.43% 0.15%
Portfolio turnover rate 8% 25% 32% 40% 12% 25%
<FN>
For 1996, 1995 and 1993, all or a portion of the operating expenses were waived. If these costs had not been
waived,
the resulting increase to expenses per share in each of these years would
be $.00, $.01, and $.01, respectively. The increase to the ratio of
expenses to average net assets would have been .00%, .18%, and 0.21%,
respectively.
</FN>
</TABLE>
<PAGE>
SEXTANT GROWTH FUNDSEXTANT GROWTH FUND
1998 Semi-Annual Report
STATEMENT OF ASSETS AND LIABILITIES
(GRAPHIC OMITTED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
For the six months ended May 31, 1998 - -
Assets
Investments (cost $1,126,011) $1,814,780
Cash 365,064
Interest receivable 1,261
Insurance reserve premium 1,214
----------
Total Assets $2,182,319
----------
Liabilities
Other Liabilities 1,771
----------
Total Liabilities 1,771
----------
Net Assets 2,180,548
==========
Fund shares outstanding 229,900
Analysis of Net Assets
Paid in capital (unlimited shares authorized, without par) 1,487,602
Accumulated net realized gain (loss) on investments 4,177
Unrealized net appreciation on investments 688,769
----------
Net Assets applicable to Fund shares outstanding 2,180,548
==========
Net Asset Value, Offering and Redemption price per share $ 9.48
==========
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended May 31, 1998
(Graphic Omitted)
<TABLE>
<CAPTION>
<S> <C> <C>
Investment income
Dividend Income $ 9,233
--------
Gross investment income $ 9,233
Expenses
Investment adviser and administration fee 5,957
Professional fees 2,193
Filing and registration fees 771
Printing and postage 560
Other expenses 502
--------
Total gross expenses 9,983
Net investment income (750)
----------
Net realized gain on investments
Proceeds from sales 314,090
Less cost of securities sold based on identified cost 309,843
--------
Realized net gain (loss) 4,247
Unrealized gain on investments
End of period 688,769
Beginning of period 714,030
--------
Increase in unrealized gain for the period (25,261)
----------
Net realized and unrealized gain (loss) on investments (21,014)
----------
Net increase in net assets resulting from operations ($21,764)
==========
</TABLE>
<PAGE>
SEXTANT GROWTH FUNDSEXTANT GROWTH FUND
1998 Semi-Annual Report
STATEMENT OF CHANGES IN NET ASSETS
(Graphic Omitted)STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
- - Period ended Year ended
- - May 31, 1998 Nov. 30, 1997
-------------- ---------------
INCREASE IN NET ASSETS
Operations:
Net investment Income $ (750) $ (2,493)
Net realized gain (loss) on investments 4,247 171,838
Net increase in unrealized appreciation (25,261) 315,222
-------------- ---------------
Net increase in net assets from operations 21,764 484,567
-------------- ---------------
Dividends to Shareowners From:
Net investment income - (1,105)
Capital gains distributions - (162,378)
-------------- ---------------
- (163,483)
-------------- ---------------
Fund Share Transactions:
212,479 407,623
Proceeds from sales of shares
Value of shares issued in reinvestment of dividends - 161,233
-------------- ---------------
212,479 568,856
(198,534) (317,129)
-------------- ---------------
Cost of shares redeemed
Net Increase in net assets from share transactions 13,945 251,727
-------------- ---------------
(7,819) 572,811
Total increase in net assets
NET ASSETS
2,188,367 1,615,556
-------------- ---------------
Beginning of period
$ 2,180,548 $ 2,188,367
============== ===============
End of period
Shares of the Fund Sold and Redeemed
Number of shares sold 21,938 45,282
Number of shares issued in reinvestment of dividends - 16,830
-------------- ---------------
21,938 62,112
Number of shares redeemed
(20,282) (37,742)
-------------- ---------------
Net Increase (decrease) in
1,656 24,370
============== ===============
Number of Shares Outstanding
</TABLE>
<PAGE>
SEXTANT INTERNATIONAL FUND
1998 Semi-Annual Report
INVESTMENTS
(GRAPHIC OMITTED)INVESTMENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Issue Number of Shares Cost Market Value Country
Common Stocks
Banking and Financial (19.6%)
Australia & New Zealand Bank ADR 500 10,875 17,656 Australia
Aegon NV ADR 612 11,512 48,539 Netherlands
Banco Bilbao Vizcaya ADS 1,200 15,505 60,900 Spain
Hutchison Whampoa ADR 500 17,826 13,188 Hong Kong
ING Groep N.V. Ads 400 18,258 27,300 Netherlands
Toronto Dominion Bank 700 18,159 31,369 Canada
---------------- ------ ------------
SUB-TOTAL 3,912 92,135 198,952
Building Materials (3.6%)
C R H plc ADR 300 15,661 22,275 Ireland
Hanson plc ADR 500 12,090 14,781 United Kingdom
---------------- ------ ------------
SUB-TOTAL 800 27,751 37,056
Chemicals (2.8%)
Phone Poulenc SA ADR 508 15,859 27,940 France
Computers (7.7%)
Business Objects SA ADS* 2,000 19,570 33,813 France
Dassault Systems SA ADR 400 13,875 18,700 France
Olicom A/S 900 16,245 25,819 Denmark
---------------- ------ ------------
SUB-TOTAL 3,300 49,690 78,332
Consumer Products (3.4%)
Gucci Group NV 200 10,925 9,075 Italy
Coca Cola FEMSA S.A. ADR 1,500 9,750 25,500 Mexico
---------------- ------ ------------
SUB-TOTAL 1,700 20,675 34,575
Closed End Country Funds (6.1%)
Austria Fund 1,000 7,923 13,375 Austria
New Germany Fund 1,173 12,417 21,701 Germany
Irish Investment Fund 900 10,238 20,363 Ireland
Singapore Fund 1,000 13,777 6,625 Singapore
---------------- ------ ------------
SUB-TOTAL 4,073 44,355 62,064
Electrical Equipment (1.6%)
ABB AB ADR 100 10,000 16,150 Sweden
Medical-Drugs (5.6%)
Glaxo Wellcome plc ADR 400 9,800 21,575 United Kingdom
Novo-Nordisk A/S ADR 450 14,702 35,325 Denmark
---------------- ------ ------------
SUB-TOTAL 850 24,502 56,900
Metals & Mining (3.4%)
Broken Hill Proprietary ADR 400 11,700 6,875 Australia
Potash Corp of Saskatchewan 200 14,675 17,212 Canada
Rio Tinto plc ADS 200 11,375 10,100 United Kingdom
---------------- ------ ------------
SUB-TOTAL 800 37,750 34,187
</TABLE>
<PAGE>
SEXTANT INTERNATIONAL FUND
1998 Semi-Annual Report
INVESTMENTSINVESTMENTS
(GRAPHIC OMITTED)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Issue Number of Shares Cost Market Value Country
Oil & Gas Production (7.6%)
Numac Energy 2,000 8,853 7,000 Canada
Petroleum Geo-Services A/S 500 10,979 32,750 Norway
Total S.A. ADR 307 8,813 19,130 France
YPF SA ADS 600 12,345 18,675 Argentina
---------------- ------- -------------
SUB-TOTAL 3,407 40,990 77,555
Paper Products (3.1%)
Abitibi-Consolidated 800 11,847 10,900 Canada
Fletcher Challenge Forests ADR 2,024 15,778 12,903 New Zealand
Fletcher Challenge Paper ADR 600 12,623 7,875 New Zealand
---------------- ------- -------------
SUB-TOTAL 3,424 40,248 31,678
Photographic Equipment (3.6%)
Canon ADR 1,000 23,427 23,500 Japan
Fuji Photo Film ADR 400 10,050 13,500 Japan
---------------- ------- -------------
SUB-TOTAL 1,400 33,477 37,000
Real Estate (2.9%)
Intrawest 1,500 26,218 29,718 Canada
Telecommunications (16.3%)
BCE Inc 900 15,830 41,456 Canada
British Sky Broadcasting ADS 300 11,063 12,675 United Kingdom
Cable & Wireless plc ADS 600 13,021 20,813 Hong Kong
PT Indosat ADR 1,000 20,952 14,125 Indonesia
Telebras ADS 300 15,051 31,950 Brazil
Telecom Corp New Zealand ADS 300 10,050 10,969 New Zealand
Telefonica de Espana ADS 250 10,250 33,625 Spain
---------------- ------- -------------
SUB-TOTAL 3,650 96,217 165,613
Transportation (7.0%)
British Airways ADS 150 10,931 15,713 United Kingdom
Canadian Pacific Ltd. 500 8,164 14,531 Canada
Daimler-Benz ADS 250 16,406 24,719 Germany
Desc SA ADR 700 19,649 15,838 Mexico
---------------- ------- -------------
SUB-TOTAL 1,600 55,150 70,801
Utilities-Electric (1.0%)
Enersis S.A. ADR 400 10,100 10,150 Chile
Utilities-Gas (1.6%)
Transport de Gas del Sur SA ADR 1,500 18,807 16,031 Argentina
Total Investments (96.9%) 32,924 643,924 984,702
Other Assets (net of liabilities) (3.1%) 31,178
-------------
Total Net Assets (100%) $ 1,015,880
=============
</TABLE>
<PAGE>
SEXTANT INTERNATIONAL FUND
1998 Semi-Annual Report
Selected data per share of capital stock outstanding throughout the period:
(GRAPHIC OMITTED)
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- - Period Ended Year Ended Year ended
- - May. 31, '98 Nov. 30, '97 Nov. 30, '96
-------------- -------------- --------------
NET ASSET VALUE AT BEGINNING OF PERIOD $ 6.61 $ 5.87 $ 4.99
-------------- -------------- --------------
INCOME FROM INVESTMENT OPERATIONS - - -
Net investment income 0.03 0.06 0.03
Net gains or losses on securities (both realized and unrealized) 1.20 0.74 0.88
-------------- -------------- --------------
Total from investment operations 1.23 0.80 0.91
-------------- -------------- --------------
LESS DISTRIBUTIONS - - -
Dividends (from net investment income 0.00 (0.06) (0.03)
Distributions (from capital gains) 0.00 0.00 0.00
-------------- -------------- --------------
Total distributions 0.00 (0.06) (0.03)
-------------- -------------- --------------
NET ASSET VALUE AT END OF PERIOD $ 7.84 $ 6.61 $ 5.87
============== ============== ==============
TOTAL RETURN 18.61% 13.58% 18.16%
RATIOS/SUPPLEMENTAL DATA - - -
Net assets ($000), end of period $ 1,017 $ 881 $ 695
Ratio of expenses to average net assets 0.64% 1.51% 1.80%
Ratio of net investment income to average net assets 0.47% 0.93% 0.60%
Portfolio turnover rate 3% 9% 11%
<S> <C>
- - Sept. 28, '95
(Inception) to
- - Nov. 30, '95*
----------------
NET ASSET VALUE AT BEGINNING OF PERIOD $ 5.00
----------------
INCOME FROM INVESTMENT OPERATIONS -
Net investment income (0.02)
Net gains or losses on securities (both realized and unrealized) 0.01
----------------
Total from investment operations (0.01)
----------------
LESS DISTRIBUTIONS -
Dividends (from net investment income 0.00
Distributions (from capital gains) 0.00
----------------
Total distributions 0.00
----------------
NET ASSET VALUE AT END OF PERIOD $ 4.99
================
TOTAL RETURN (0.20)%
RATIOS/SUPPLEMENTAL DATA -
Net assets ($000), end of period $ 328
Ratio of expenses to average net assets 0.49%
Ratio of net investment income to average net assets 0.38%
Portfolio turnover rate 12%
<FN>
For the 1996 year and the period ended Nov. 1995, all or a portion of the operating expenses were waived. If costs
had not been waived and directly assumed, the
resulting increase to expenses per share in these periods would have been $.03
and $.01, respectively. The increase to the ration of expenses to average monthly
net assets would be .50% and .21%, respectively.
*not annualized
</FN>
</TABLE>
<PAGE>
SEXTANT INTERNATIONAL FUND
1998 Semi-Annual Report
STATEMENT OF ASSETS AND LIABILITIES
FOR THE SIX MONTHS ENDED MAY 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS - -
Common stock investments (cost $643,924) 984,700 -
Cash 26,886 -
Dividends receivable 5,103 -
--------
Total Assets - $1,016,689
----------
LIABILITIES
Payable to affiliate 809 -
--------
Total liabilities 809
----------
Net assets - $1,015,880
- --------------------------------------------------------------------- -------- ==========
Fund Shares Outstanding - -
- --------------------------------------------------------------------- --------
ANALYSIS OF NET ASSETS - -
Paid in capital (unlimited shares authorized, without par value) 682,236 -
Accumulated net realized gain (loss) on investments (7,132)
Unrealized net appreciation on investments 340,776
--------
Net Assets applicable to Fund shares outstanding - $1,015,880
==========
NET ASSET VALUE , OFFERING AND REDEMPTION PRICE PER SHARE - $ 7.84
==========
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1998
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME - -
Dividends (net of foreign tax) $ 10,692
--------
Net investment income - $ 10,692
EXPENSES
Investment adviser and administration fee 4,269
Professional fees 854
Filing and registration fees 443
Printing and postage 281
Other expenses ____321
--------
Total gross expenses - 6,168
--------
Net investment income - 4,524
--------
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Proceeds from sales 30,436
Less cost of securities sold based on identified cost 23,715
--------
Realized net gain (loss) - 6,721
UNREALIZED GAIN (LOSS) ON INVESTMENTS
End of period 340,776
Beginning of period 189,878
--------
Increase in unrealized gain for the period - 150,898
--------
Net realized and unrealized gain (loss) on investments - 157,619
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS -
$162,143
========
</TABLE>
<PAGE>
SEXTANT INTERNATIONAL FUND
1998 Semi-Annual Report
STATEMENT OF CHANGES IN NET ASSETS STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
- - Six Months ended Year ended
- - May 31, 1998 Nov 30, 1997
------------------ --------------
INCREASE IN NET ASSETS
OPERATIONS:
Net investment Income $ 4,524 $ 7,829
Net realized gain (loss) on investments 6,721 (7,500)
Net increase in unrealized appreciation 150,898 93,292
------------------ --------------
Net increase in net assets from operations 162,143 93,621
DIVIDENDS TO SHAREOWNERS FROM: - -
(7,831)
Net investment income 0
Capital gains distributions _______0 _______0
------------------ --------------
(7,831)
--------------
- - 0
FUND SHARE TRANSACTIONS:
49,405 274,408
Proceeds from sales of shares
Value of shares issued in reinvestment of dividends 7,831
--------------
_______0
------------------
49,405 282,239
- -
(76,822) (182,369)
------------------ --------------
Cost of shares redeemed
Net increase in net assets from share transactions (27,417) 99,870
------------------ --------------
134,726 185,660
TOTAL INCREASE IN NET ASSETS
NET ASSETS
881,154 695,494
------------------ --------------
Beginning of period
End of period $ 1,015,880 $ 881,154
================== ==============
SHARES OF THE FUND SOLD AND REDEEMED
6,685 41,860
Number of shares sold
Number of shares issued in reinvestment of dividends 1,184
--------------
_______0
------------------
- - 6,685 43,044
------------------ --------------
(10,408) (28,196)
Number of shares redeemed
NET INCREASE (DECREASE) IN
(3,723) 14,848
================== ==============
NUMBER OF SHARES OUTSTANDING
</TABLE>
<PAGE>
(Graphic Omitted)
NOTES TO FINANCIAL STATEMENTS
1998 Semi-Annual Report
NOTE 1 - ORGANIZATION
Saturna Investment Trust (the "Trust") was established under Washington State
Law as a Business Trust on February 20, 1987. The Trust is registered as a
no-load, open-end series invest-ment company under the Investment Company Act of
1940, as amended. Five portfolio series have been created to date: Sextant
Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund, and Sextant
International Fund (the "Funds"), and Idaho Tax-Exempt Fund, distributed through
a separate prospectus and the results of which are contained in a separate
report.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the sig-nificant accounting policies followed by
the Funds.
INVESTMENTS:
Securities traded on a national ex-change or the national over-the-counter
market system are valued at the last sale price or, in the absence of any sale
on that date, the closing bid price. Other securities traded in the
over-the-counter market are valued at the last bid price. Fixed-income
securities for which there are no publicly available market quo-tations are
valued using a matrix based on maturity, quality, yield and similar factors,
which are compared periodically to multiple dealer bids and ad-justed by the
adviser under policies established by the Trustees.
The cost of securities is the same for accounting and Federal income tax
purposes. Securities trans-actions are recorded on trade date. Realized gains
and losses are recorded on the identified cost basis.
INCOME AND EXPENSES:
Interest income is reduced by the amortization of bond premiums, on a con-stant
yield-to-maturity basis from pur-chase date to maturity. Interest income is
increased by accretion only for bonds underwritten as original issue discounts.
Market dis-counts are recorded as realized gains upon disposition.
Cash dividends from equity secu-
rities are recorded as income on the ex-div-idend date.
Expenses incurred by the Trust on be-half of the Funds (e.g., professional fees)
are allocated to the Funds on the basis of relative daily average net assets.
The Adviser has agreed to certain limits on ex-penses, as described below.
INCOME TAXES:
The Funds have elected to be taxed as regulated investment companies under the
Internal Revenue Code and distribute sub-stantially all of their taxable net
invest-ment income and realized net gains on in-vest-ments. Therefore, no
provision for Federal income taxes is required.
DIVIDENDS AND DISTRIBUTIONS TO SHAREOWNERS:
Dividends and distributions to share-owners are recorded on the ex-dividend
date. For the Sextant Short-Term Bond Fund and Sextant Bond Income Fund,
dividends are paid daily and distributed on the last business day of each month.
For the Sextant Growth Fund and Sextant International Fund, dividends are
payable at the end of each November. Shareowners electing to reinvest dividends
and distributions pur-chase additional shares at the net asset value on the
payable date.
NOTE 3-TRANSACTIONS WITH AFFILIATED PERSONS
Under a contract approved by shareowners on September 28, 1995, (the
"Contract"), Saturna Capital Corporation provides investment ad-vi-sory services
and certain other adminis-tra-tive and distribution services to conduct Trust
busi-ness. Each of the Funds pays the Adviser an Investment Advisory and
Administrative Services Fee (the "Base Fee") of .60% of average net assets per
annum, payable monthly. The Base Fee is subject to adjustment up or down
depending on the investment performance of the Fund relative to a specified
index (the "Performance Adjustment"). No performance adjustment is applicable
during the first year any Agreement is in place. The Adviser has voluntarily
undertaken to limit expenses of Sextant Bond Income Fund and Sextant Short-Term
Bond Fund to 0.60% through March 31, 1999 and waives its investment advisory and
administrative fee as to either Fund completely so long as assets of that Fund
are less than $2 million.
<PAGE>
(Graphic Omitted)
NOTES TO FINANCIAL STATEMENTS
1998 Semi-Annual Report
For the six months ended May 31, 1998, Sextant Bond Income Fund and Sextant
Growth Fund incurred advisory expenses of $3,706 and $5,957, respectively.
Sextant International Fund incurred advisory expenses of $4,296 and Sextant
Short-Term Bond Fund incurred advisory expenses of $6,483.
In accordance with the expense waiver noted above, for the six months ended May
31, 1998, Saturna Capital waived $4,057 of the Sextant Short-Term Bond Fund
advisory fee and $3,706 of that of Sextant Bond Income Fund.
In accordance with the Funds' agreement with their custodian bank, National City
Bank, for the six months ended May 31, 1998, custodian fees of Sextant
Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Growth Fund and Sextant
International Fund, amounted to $1,079, $240, $1,122 and $1,313, respectively.
Bank earnings credits eliminated these charges.
One trustee, who also serves as the president of the Trust, is a di-rector and
president of the Adviser. Unaffiliated trustees receive $100 per Board or
committee meeting attended. On May 31, 1998, trustees, officers and their
immediate families as a group owned 17%, 25% 17% and 28% of the outstanding
shares of Sextant Short-Term Bond Fund, Sextant Bond Income Fund, Sextant Growth
Fund and Sextant International Fund, respectively.
The Trust acts as a distributor of its own shares, except in those states in
which Investors National Corporation (a sub-si-diary of Saturna Capital
Corporation) is itself registered as a broker-dealer and acts as dis-tributor
without compensation.
Investors National Corporation is the primary stockbroker used to effect
portfolio transactions for Sextant Growth Fund and Sextant International Fund,
and was paid $1,197 and $287, respectively in commissions at deep discount rates
during the six months ended May 31, 1998.
Note 4-Investments
At May 31, 1998, the net unrealized appreciation of investments for Sextant Bond
Income Fund of $34,009 comprised net unrealized gains of $34,009 and unrealized
losses of $0. Additionally, the net unrealized appreciation of investments for
Sextant Growth Fund, Sextant Short-Term Bond Fund and Sextant International Fund
were $688,769, $9,300, and $340,776, which consist of gains of $726,718,
$12,992, and $384,351, and unrealized losses of ($37,949),($3,692), and
($43,575), respectively.
During the six months ended May 31, 1998, Sextant Short-Term Bond Fund purchased
$522,789 of securities and sold $919,226. Comparable figures for Bond Income
Fund are $171,563 and $0, for Growth Fund $133,934 and $314,090, and for
International fund $25,830 and $30,436. Included in the above amounts for
Sextant Short-Term Bond Fund and Sextant Bond Income Fund are purchases of $0
and $0, and sales of $102,859 and $0 of U.S. Government securities,
respectively.
SATURNA CAPITAL
MUTUAL FUNDS
1300 No. State Street
Bellingham WA 98225-4730MUTUAL FUNDSSEXTANT INTERNATIONAL FUND
800/SATURNA
(800/728-8762)
www.saturna.com
- ---------------
This report is issued for the information of the shareowners of the Funds. It
is not authorized for distribution to prospective investors unless it is
accompanied or preceded by an effective prospectus relating to the securities
of the Trust. The Sextant Funds are series of Saturna Investment Trust
Sextant
Mutual Funds
SHORT-TERM BOND SHORT-TERM BOND
BOND INCOMEBOND INCOME
GROWTHGROWTH
INTERNATIONALINTERNATIONAL
SEMI-ANNUAL REPORT
MAY 31, 1998
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