Short-Term Bond Fund invests primarily in marketable short-term debt securities. Under normal circumstances the Fund's dollar-weighted average maturity does not exceed three years. Sextant Bond Income Fund invests primarily in marketable debt securities. The Fund's current policy is to maintain a dollar-weighted average maturity of ten years or more. Both Funds invest at least 65% of assets in bonds rated within the three highest grades (AAA, AA or A); and may not invest in a security rated at time of purchase below the fourth highest grade (BBB).

Principal Risks of Investing in the Funds

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How a Fund has performed in the past is not necessarily an indication of how the Fund will perform in the future.

Shareowners receive a financial report showing the investment returns, portfolios, income and expenses of each Fund every six months. Investors may obtain current share prices daily by calling 888/732-6262, on electronic quotation systems, or by accessing the Internet at www.saturna.com.

Fees and Expenses

This table describes the fees and expenses that Fund shareowners may pay. There are no shareowner fees (fees paid directly from an investment). The Funds impose no sales charge (load) on purchases or reinvested dividends, no distribution fees, or any deferred sales charge (load) upon redemption. There are no exchange fees, redemption fees, or account fees. There are no fees charged to retirement plan accounts. The following table illustrates operating expenses of the Funds for the fiscal year ending November 30, 1999.

ANNUAL FUND OPERATING EXPENSES
(Expenses that are deducted from Fund assets)

Expenses Example

The example below is intended to help investors compare the cost of investing in a Sextant Fund with the cost of investing in other mutual funds.

The example assumes an investor invests $10,000 in a Fund for the years indicated and then redeems at the end of those years. The example also assumes that the investment has a 5% net return each year and that the Fund's operating expenses remain the same. Although actual costs may be higher or lower, based on these assumptions, an investor's cumulative expenses would be:

How To Buy Shares

You may open an account and purchase shares by sending a completed application with a check for $1,000 or more ($25 under a group or retirement plan) to the Fund of your choice. The Funds do not accept initial orders unaccompanied by payment. The price you receive is the net asset value next determined after receipt of a purchase order. There are no sales charges or loads.

Shareowners may purchase additional shares at any time in minimum amounts of $25. Once an account is open, purchases can be made by check, by electronic funds transfer, or by wire.

Shareowners may authorize the use of electronic funds transfer (via the Automated Clearing House system ["ACH"]) to purchase or redeem shares by completing the appropriate section of the application. The authorization must be received at least two weeks before ACH can be used. To use ACH to purchase or redeem shares, simply call Saturna Capital. Investors also may wire money to purchase shares, though the wiring bank typically charges a fee for this service. Be sure Saturna Capital is notified when wiring money.

Each time shares are purchased or redeemed, a confirmation is mailed showing the details of the transaction as well as the current number and value of shares held. Share balances are computed in full and fractional shares, expressed to three decimal places.

The Funds offer several optional plans and services, including a prototype defined contribution plan and free Individual Retirement Accounts. Other plans offered by the Funds include an automatic investment plan, a systematic withdrawal plan, and the right to exchange your shares without charge for any other no-load mutual fund for which Saturna Capital is the investment adviser. Materials describing these plans and applications may be obtained from Saturna Capital.

For telephone requests, the Funds will endeavor to confirm that instructions are genuine and may be liable for losses if they do not. The caller must provide

The Funds also may require a form of personal identification. The Funds will not be responsible for the results of transactions they reasonably believe genuine.

Check Writing:

Shareowners may also redeem by writing checks for amounts of $500 or more. Upon request, a Fund provides a small book of blank checks for a $10 fee, which may then be used to write checks to any payee. Checks are redeemed at the price next determined after receipt by the transfer agent. To use this feature, request the Check Writing Privilege on the Application request.

Both dividends and capital gains distributions are automatically reinvested in additional full and fractional shares of the Fund owned. At your option, you may receive dividends or capital gain distributions in cash. You are notified of each dividend and capital gains distribution when paid.

Tax Information

Any redemption, including exchanges and checks written by shareowners, constitutes a sale for federal income tax purposes, and investors may realize a capital gain or loss on the redemption.

At the end of each calendar year, shareowners receive a complete annual statement, which should be retained for tax record keeping. Saturna Capital keeps each account's entire investment transaction history,

These tables are to help you understand each Fund's financial performance. The top section reflects financial results for a single Fund share. The total returns represent the rate that an investor earned (or lost) on an investment in each Fund, asuming reinvestment of all dividends and distributions and without regard to income taxes. Tait Weller & Baker, independent auditors for the Funds, examined this information. Their report and each Fund's financial statements are in the Funds' annual report (available upon request from Saturna Capital Corporation).

History of the Funds

The Trust has five separate Funds, four of which are offered as the Sextant Funds through this Prospectus and Statement of Additional Information:

The fifth Fund, Idaho Tax-Exempt Fund, is offered through a separate Prospectus and Statement of Additional Information.

Fund Descriptions, Investments and Risks

Saturna Investors Trust is a "series trust" that presently offers four Sextant "open-end diversified management investment companies" to investors.

Under normal market conditions, each of the Bond Funds invests at least 65% of the value of its total assets (taken at market value at the time of investment) in "bonds" meaning:

These Funds may also invest in other debt securities (including those convertible into, or carrying warrants to purchase, common stocks or other equity interests, and privately placed debt securities). However, the Funds may not invest in a security rated at time of purchase below the fourth highest grade assigned by Moody's (Baa) or S&P (BBB). Debt rated Baa or BBB is considered "medium grade" though still generally accepted as investment grade.

Some issuers of debt securities choose not to have their securities rated by a rating service. The Funds may invest in unrated securities that in the adviser's opinion are comparable to securities having at least a medium grade rating and are suitable for investment by the Funds.

When the Adviser considers a temporary defensive investment position advisable, any Sextant Fund may invest without limitation in high-quality corporate debt obligations or U.S. government obligations or hold cash or cash equivalents.

Management of the Funds

Board of Trustees

A Board of five Trustees manages the Funds: Nicholas Kaiser, John E. Love, John S. Moore, Gary A. Goldfogel, and A. Herbert Ershig. The Trustees establish policies, as well as review and approve contracts and their continuance. The Trustees also elect the officers, determine the amount of any dividend or capital gain distribution and serve on any committees of the Trust.

Management Information

The Trustees and Officers are:

*Mr. Kaiser is an "interested person" of the Trust as defined in the Investment Company Act of 1940.

The Board has authority to establish an Executive Committee with the power to act on behalf of the Board between meetings and to exercise all powers of the Trustees in the management of the Trust. No Executive Committee has been established at this time. An Audit Committee operating under a specific charter and consisting of the disinterested directors meets to select the independent accountant and review all audit reports. There is no separate nominating committee.

The Trust pays disinterested trustees $100 per meeting attended and reimbursement of travel expenses (pro-rata to each Fund of the Trust). Mr. Kaiser receives no compensation from the Trust, nor are the other officers of the Trust paid for their duties with the Trust.

Principal Holders of Securities

As of February 23, 2000, officers and Trustees (plus affiliated family members and entities), as a group, own the following shares of the Funds:

Investment Advisory and Other Services

Investment Adviser and Administrator

Saturna Capital Corporation, 1300 N. State Streeet, Bellingham, Washington 98225 is the Investment Adviser and Administrator (the "Adviser") for the Funds. Saturna Capital is also the Funds' shareowner servicing agent. Mr. Nicholas Kaiser, by his ownership of the majority of its voting stock, is the controlling person of the Adviser. Mr. Kaiser is also a Trustee and President of Saturna Investment Trust, and the principal portfolio manager of both the Growth Fund and the International Fund.

Advisory Fee

Each of the Sextant Funds monthly pays the Adviser an Advisory and Administrative Services Fee (the "Base Fee"). The Base Fee covers certain administrative services such as portfolio accounting, shareholder and financial reporting, shareholder servicing and transfer agency services. The Base Fee is also compensation for portfolio management, advice and recommendations on securities to be purchased, held or sold. The Base Fee is computed at the annual rate of 0.60% of average daily net assets of each Fund, and is paid monthly. The Base Fee is subject to adjustment up or down depending on the investment performance of the Fund.

Performance adjustment for Sextant Growth Fund and Sextant International Fund:

The Adviser has voluntarily undertaken to limit expenses of Short-Term Bond Fund and Bond Income Fund to 0.60% through March 31, 2001 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.

Shareowner Services
Under the Advisory agreement, Saturna Capital also provides services as the transfer agent and dividend-paying agent for the Funds. As transfer agent, Saturna furnishes to each shareowner a statement after each transaction, an historical statement at the end of each year showing all transactions during the year, and Form 1099 tax forms. Saturna also, on behalf of the Funds, responds to shareowners' questions or correspondence. Further, the transfer agent regularly furnishes the Funds with current shareowner lists and information necessary to keep the shares in balance with the Funds' records. The transfer agent performs the mailing of all financial statements, notices and prospectuses to shareowners. The transfer agent maintains records of contributions, disbursements and assets as required for IRAs and other qualified retirement accounts. These transfer agent services are included in the Base Fee.
For each of the fiscal years ended November 30, 1997, 1998, and 1999, respectively, the shareowner servicing fees (after expense limitations) the Fund paid Saturna Capital were $4,050, $4,059 and $4,049, respectively.

National City Bank, Indiana, of Indianapolis, National City Center, Indianapolis, Indiana 46255 is the custodian of the Funds. As custodian for the Funds, the bank holds in custody all securities and cash, settles for all securities transactions, receives money from sale of shares and on order of the Funds pays the authorized expenses of the Funds. When investors redeem Fund shares, the proceeds are paid to the shareowner from an account at the custodian bank.

Brokerage Allocation

The placing of purchase and sale orders as well as the negotiation of commissions is performed by the Adviser and is reviewed by the Board of Trustees. The Adviser may make allocation of brokerage to any broker in return for research or services and for selling shares of any fund of Saturna Investment Trust. Brokers may provide research or statistical material to the Adviser, but this information is only supplemental to the research and other statistics and material accumulated and maintained through the Adviser's own efforts. Any such supplemental information may or may not be of value or used in making investment decisions for the Funds or any other account serviced by the Adviser. Research services provided by brokers through which the Funds effect securities transactions may be used by the Funds' investment adviser in servicing all of its accounts and not all of these services may be used by the adviser in connection with the Funds.

The primary consideration in effecting securities transactions for the Funds is to obtain the best price and execution which in the judgment of the Adviser is attainable at the time and which would bring the best net overall economic result to a Fund. Factors taken into account in the selection of brokers include the price of the security, commissions paid on the transaction, the efficiency and cooperation with which the transaction is effected, the expediency of making settlement and the financial strength and stability of the broker. The Adviser may negotiate commissions at a rate in excess of the amount another broker would have charged if it determines in good faith that the overall net economic result is favorable to the Fund, and is not required to execute trades in "over-the-counter" securities with primary market-makers if similar terms are available elsewhere. The Adviser evaluates whether brokerage commissions are reasonable based upon available information about the general level of commissions paid by similar mutual funds for comparable services.

Brokerage is almost entirely directed to Investors National Corporation, a wholly owned subsidiary of the adviser, which engages in a discount brokerage business. Consideration is given by the Funds to the unpaid services of Investors National Corporation as the Funds' principal underwriter. The Trustees review brokerage activity in detail at each regular meeting. Meetings are held on a quarterly schedule. For each of the last three fiscal years, the commissions each Fund paid Investors National were:

Capital Stock

Each Fund of Saturna Investment Trust is divided into shares of beneficial interest. The shares of each separate Fund of the Trust have equal voting rights. All shares are fully paid, non-assessable, transferable and with rights of redemption, and are not subject to preemptive rights. The Trust is not required to hold annual shareowner meetings. However, special meetings may be called for such purposes as electing or removing Trustees, changing fundamental policies, or voting on approval of an advisory contract. On issues relating solely to a single Fund, only the shareowners of that Fund are entitled to vote. All dividends and distributions for each Fund shall be distributed to shareowners in proportion to the number of shares owned.

Purchase, Redemption and Pricing of Shares

See "How to Buy Shares," "How to Redeem Shares" and "Pricing of Fund Shares" in the Prospectus for an explanation about the ways to purchase or redeem shares. Both purchases and redemptions are made at net asset value per share.

Price (net asset value) per share is determined by dividing the value of all securities and other assets, less liabilities, by the number of shares outstanding. The daily price is determined for each Fund as of the close of trading on the New York Stock Exchange (generally 4 p.m. New York time) on each day the Exchange is open for trading. The Exchange is generally closed on New Year's Day, Martin Luther King Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. See the balance sheet in the Annual Report or Semi-Annual Report for a specimen sheet showing how the Funds calculate net asset value, which is the price used for both purchase and redemption of shares.

How a Fund has performed in the past is not necessarily an indication of how the Fund will perform in the future.

Idaho Tax-Exempt Fund seeks to provide income dividends free from Federal income, Federal alternative minimum and Idaho state income taxes. Preservation of capital is a secondary objective.

Investment Strategies

*The sum of the market value of each bond times its number of years to antipated maturity, divided by the portfolio's total market value.

Risks

The Fund is vulnerable to tax rate changes, either at the Idaho or Federal level, since part of municipal securities' value is derived from the recipient's ability to exclude interest payments from taxation. Should this exclusion be reduced, the market for municipal securities, and consequently the Fund's share value, may be adversely affected.

Investment Adviser

Phelps McIlvaine, vice president of Saturna Capital since 1994, is the primary manager of the Idaho Tax-Exempt Fund. He also manages the Sextant Short-Term Bond Fund and the Sextant Bond Income Fund, other series of the Trust.

Since daily bid prices are not available for many municipal bond issues, the Fund values securities using matrices of municipal bond yields for various maturities and qualities. Prices are adjusted for factors unique to each bond. To verify its knowledge of market factors, the adviser periodically obtains appraisals from independent sources.

The Fund normally pays for shares redeemed within three days after a proper instruction is received. To allow time for clearing, payment for redemption of investments made by check or ACH may be restricted for up to 14 calendar days. There are several methods you may choose to redeem shares.

Shareowners may also redeem by writing checks for amounts of $500 or more. Upon request, the Fund provides a small book of blank checks for a $10 fee, which may then be used to write checks to any payee. Checks are redeemed at the price next determined after receipt by the transfer agent. To use this feature, request the Check Writing Privilege on the Application.

Dividends
The Fund intends to distribute its net investment income and net realized capital gains, if any, to its shareowners. The Fund accounts for its distributions as either taxable capital gains (originating from net realized gains on portfolio transactions), or taxable income (originating from dividends, taxable interest and certain other types of gains) or tax-exempt income (originating from interest on municipal bonds). Income dividends are paid daily and reinvested or distributed monthly. Distributions from capital gains are paid at the end of November.

Both dividends and capital gains distributions are automatically reinvested in additional full and fractional shares of the Fund owned. At your option, you may receive dividends or capital gain distributions in cash. You are notified of each dividend and capital gains distribution when paid.

Each January, the transfer agent reports to each shareowner (consolidated by taxpayer ID) and to the IRS the amount of each redemption transaction and the amount of taxable income dividends and capital gains distributions. Dividend amounts represent the proportionate share the shareowner is to report on a tax return for the year. Capital gains may be taxed at different rates, depending on the length of time the Fund held its investments. The Fund expects that its distributions will consist primarily of tax-exempt income dividends, but it may invest a portion of its assets in securities that generate income dividends that are not exempt from federal or Idaho income tax. Income dividends exempt from federal tax maybe subject to state and local income. Any capital gains distributed by the Fund may be taxable. Fund distributions, whether paid in cash or invested in additional shares of the Fund, may be subject to income taxes.

Financial Highlights

This table is to help you understand the Fund's financial performance. The top section reflects financial results for a single Fund share. The total returns represent the rate that an investor earned (or lost) on an investment in the Fund, assuming reinvestment of all dividends and distributions and without regard to income taxes. Tait Weller & Baker, independent auditors for the Funds, examined this information. Their report and the Fund's financial statements are in the Fund's annual report (available upon request from Saturna Capital).

IDAHO TAX-EXEMPT FUND

*Mr. Kaiser is an "interested person" of the Trust as defined in the Investment Company Act of 1940.

The Board has authority to establish an Executive Committee with the power to act on behalf of the Board between meetings and to exercise all powers of the Trustees in the management of the Trust. No Executive Committee has been established at this time. An Audit Committee operating under a specific charter and consisting of the disinterested directors meets to select the independent accountant and review all audit reports. There is no separate nominating committee.