STATEMENT of OPERATIONS

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

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

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

Fiscal Year 1999
For the fiscal year ended November 30, 1999, the Sextant International Fund returned 24.90% to its shareowners. Total assets grew 32%. The objective of the Fund is to provide long-term growth through investment in foreign stocks.

Factors Affecting Past Performance
Investing in foreign securities includes risks not present in domestic securities. During 1999, foreign markets generally rebounded from the weak 1997 and 1998 years. Our portfolio was more heavily invested in Europe than Asia, where the best results were realized. Commodity prices started to recover, bringing gains to our cyclical and resource-based issues. Technology stocks did the best, and Business Objects (France) is the largest position in our portfolio.

Looking Forward
The Sextant International Fund is broadly invested in growing companies headquartered outside

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the United States. For the last six weeks of calendar 1999, the Fund appreciated dramatically as European and financial stocks participated in the general market rise.
We expect that our portfolio securities will continue to show growth and the Fund will continue to perform well.

Management Fee Calculations
The Sextant International Fund calculates part of its management fee based on a comparison of the Fund's return to the average return of the Morningstar fund category Foreign Stock. At November 30, 1999, the one-year return for this category average was 32.09%. Because the Fund's 12-month return underperformed this average by more than 4% at November 30, 1999, the Fund paid the maximum penalty 0.30% (annualized) performance fee for the month of December 1999. For the fiscal year, the sub-par investment returns were muted for shareowners as the Fund's total expense ratio dropped to 0.72% from 1.16% the prior year.

Comparison to Index
Comparison of any fund to an index must be made bearing in mind that the Index is unmanaged, and expense-free. The graph below compares $10,000 invested in the Fund at its inception, compared to a similar amount invested in the AMEX International Index. This capitalization-weighted index averages 50 American Depository Receipts (ADRs) of large worldwide companies, and reflects the types of securities in which Sextant International Fund invests. The graph shows that a $10,000 investment made on September 1995 would have risen to $17,326 in the Fund and $17,847 in the Index. Past performance is not indicative of future results.

Sextant International Fund vs. AMEX International Index

(graph omitted)

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Note 1 -Organization
Saturna Investment Trust (the "Trust") (formerly Northwest Investors Trust) was established under Washington State Law as a Business Trust on February 20, 1987. The Trust is registered as a no-load, open-end series investment company under the Investment Company Act of 1940, as amended. Five portfolio series have been created to date: Sextant Bond Income Fund ("Bond Income"), Sextant Short-Term Bond Fund ("Short-Term Bond"), Sextant Growth Fund ("Growth"), and Sextant International Fund ("International") (collectively, 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 significant accounting policies followed by the Funds.

Investments:
Securities traded on a national exchange 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 quotations are valued using a matrix based on maturity, quality, yield and similar factors, which are compared periodically to multiple dealer bids and adjusted by the adviser under policies established by the Trustees.

The cost of securities is the same for accounting and federal income tax purposes. Securities transactions 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 constant yield-to-maturity basis from purchase date to maturity. Interest income is increased by accretion only for bonds underwritten as original issue discounts. Market discounts are recorded as realized gains upon disposition. Cash dividends from equity securities are recorded as income on the ex-dividend date.

Expenses incurred by the Trust on behalf 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 expenses, as described below.

Income taxes:
The Funds have elected to be taxed as regulated investment companies under the Internal Revenue Code and distribute substantially all of their taxable net investment income and realized net gains on investments. Thus, no provision for Federal income taxes is required.

Dividends and distributions to shareowners:
Dividends and distributions to shareowners are recorded on the ex-dividend date. For the Bond Income and Short-Term Bond, dividends are paid daily and distributed on the last business day of each month. For the Growth and International, dividends are payable at the end of each November. Shareowners electing to reinvest dividends and distributions purchase additional shares at the net asset value on the payable date.

Note 3 -Transactions with Affiliated Persons
Under a contract approved by shareowners on September 28, 1995, Saturna Capital Corporation provides investment advisory services and certain other administrative and distribution services to conduct Trust business, including shareholder servicing and transfer agency

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services. 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"). The Adviser has voluntarily undertaken to limit expenses of Bond Income and Short-Term Bond to 0.60% through March 31, 2000 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.

For the year ended November 30, 1999, Bond Income and Short-Term Bond incurred advisory expenses of $6,705 and $11,438, respectively. Growth and International incurred advisory expenses of $22,365 and $3,896, respectively.

In accordance with the expense waiver, for the year ended November 30, 1999, Saturna Capital waived all of the Bond Income advisory fee and $8,606 of that of Short-Term Bond.

In accordance with the Funds' custodian agreements with National City Bank, for the year ended November 30, 1999, custodian fees for Bond Income, Short-Term Bond, Growth, and International, were $718, $1,979, $2,359, and $2,577, respectively. The custodian waived its fees for earnings credits.

One trustee, who also serves as the president of the Trust, is a director and president of the Adviser. The four unaffiliated trustees receive $100 per Board or committee meeting attended. On December 8, 1999, the trustees, officers and their immediate families as a group owned 23.7%, 17.1%, 14.4% and 33.0% of the outstanding shares of Bond Income, Short-Term Bond, Growth and International, respectively.

The Trust acts as a distributor of its own shares, except in those states in which Investors

National Corporation (a subsidiary of Saturna Capital Corporation) is itself registered as a broker-dealer and acts as distributor without compensation. Investors National Corporation is the primary stockbroker used to effect portfolio transactions for Growth and International, and paid $2,285 and $1,066, respectively in commissions at discount rates during the year ended November 30, 1999.

Note 4 -Federal Income Taxes
At November 30, 1999, Bond Income had capital loss carryforwards of $80,306 which expire in 2004 and Short-Term Bond had capital loss carryforwards of $12,843 which expire in 2004, subject to regulation. Prior to their expiration, such loss carryforwards may be used to offset future net capital gains realized for federal income tax purposes.

Note 5 -Investments
At November 30, 1999, the net unrealized gain (loss) on investments for Bond Income, Short-Term Bond, Growth and International were $(45,045), $(29,128), $1,384,429, and $407,644, which consist of unrealized gains of $0, $2,505, $1,507,171, and $465,620, and unrealized losses of $45,045, $31,633, $122,742, and $57,976, respectively.

During the year ended November 30, 1999, Bond Income purchased $216,679 of securities and sold $580,163 of securities. Comparable figures for Short-Term Bond are $445,931 purchased $376,223 sold; for Growth $714,704 and $734,099; and for International, $148,693 and $165,268. Included in the above amounts for Short-Term Bond are purchases of $98,017 and sales of $195,780 of U.S. Government securities.

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This report is issued for the information of the shareoweners of the Fund. It is not authorized for distribution to prospective investors unless it is accompanied or preceded by an effective prospectus relating to the securities of the Fund. Idaho Tax-Exempt Fund is a series of Saturna Investment Trust

SEXTANT
Mutual Funds(graphic omitted)

SHORT-TERM BOND
(graphic omitted)

BOND INCOME
(graphic omitted)

GROWTH
(graphic omitted)

INTERNATIONAL
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