UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-05071
SATURNA INVESTMENT TRUST
(Exact Name of Registrant as Specified in Charter)
1300 N. State Street
Bellingham, Washington 98225-4730
(Address of Principal Executive Offices, including ZIP Code)
Nicholas F. Kaiser
1300 N. State Street
Bellingham, Washington 98225-4730
(Name and Address of Agent for Service)
Registrant’s Telephone Number- (360) 734-9900
Date of fiscal year end: November 30, 2009
Date of reporting period: August 31, 2009
Saturna Investment Trust, Idaho
Tax-Exempt Fund |
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| Municpal Bond | Quantity | Market Value | % Portfolio | Maturity | Industry |
| Ada & Canyon JSD #2 Meridian | 50,000 | $58,967 | 0.44% | 7/30/15 | Schools |
| Ada & Canyon JSD #2 Meridian | 165,000 | $181,254 | 1.36% | 8/15/20 | General Obligations |
| Ada & Canyon JSD #2 Merdian | 155,000 | $169,215 | 1.27% | 8/15/21 | General Obligations |
| Ada & Canyon JSD # 3 Kuna | 500,000 | $548,335 | 4.12% | 9/15/19 | General Obligations |
| Washington & Adams Co.s JSDC # 432 | 100,000 | $106,647 | 0.80% | 8/15/19 | General Obligations |
| Bingham Co. SCD #52 Snake HS | 400,000 | $403,312 | 3.03% | 9/1/27 | General Obligations |
| Bingham Co. Id. SCD # 55 Blackfoot | 285,000 | $303,086 | 2.28% | 8/1/17 | General Obligations |
| Blackfoot ID COP Series 2000 | 135,000 | $138,837 | 1.04% | 2/1/18 | Utility - Waste Mangmt |
| Blaine County Idaho Series A | 150,000 | $154,086 | 1.16% | 8/1/23 | General Obligations |
| Boise Co. ID SD # 73 Horseshoe Bend | 125,000 | $126,991 | 0.95% | 7/31/10 | Schools |
| Boise City ID Gen Fund Rev | 160,000 | $168,397 | 1.27% | 12/1/17 | Finance - Services |
| Boise City ID Gen Fund Rev | 100,000 | $104,910 | 0.79% | 12/1/18 | Finance - Services |
| Boise State Univerity ID Rev's | 250,000 | $253,198 | 1.90% | 4/1/27 | Schools |
| Boise State University Rev 09 Ser A | 385,000 | $395,907 | 2.97% | 4/1/34 | Schools |
| Boise City Urb Ren Agy Lease Rev | 160,000 | $171,987 | 1.29% | 8/15/20 | Real Estate - Development |
| Boise City Urb Ren Agy Lease Rev | 90,000 | $96,020 | 0.72% | 8/15/21 | Real Estate - Development |
| Bonneville & Bingham Co ID SCD 93 | 150,000 | $162,590 | 1.22% | 9/15/16 | General Obligations |
| Bonneville & Bingham Co JSD #93 GO | 350,000 | $371,231 | 2.79% | 9/15/17 | General Obligations |
| Caldwell ID GO | 150,000 | $153,494 | 1.15% | 5/15/14 | General Obligations |
| Canyon Co. ID SCD # 131 Nampa | 325,000 | $345,283 | 2.59% | 8/15/19 | Schools |
| Canyon Co. ID SCD # 131 Nampa | 105,000 | $109,661 | 0.82% | 8/15/23 | General Obligations |
| Canyon Co. ID SCD #134 Middleton | 170,000 | $179,054 | 1.35% | 7/31/16 | General Obligations |
| Canyon Co. Id SCD #139 Vallivue | 350,000 | $353,801 | 2.66% | 9/15/25 | Schools |
| Fremont & Madison JSD 215 St. Antho | 200,000 | $213,596 | 1.60% | 8/15/19 | General Obligations |
| Idaho Bond Bank Authority Rev | 135,000 | $138,663 | 1.04% | 9/1/22 | Pollution Control - Servcs |
| Idaho Bond Bank Authority | 250,000 | $264,563 | 1.99% | 9/15/26 | Utility - Water Supply |
| Idaho Bond Bank Authority | 75,000 | $76,226 | 0.57% | 9/15/23 | Utility - Waste Mangmt |
| Idaho Bond Bank Authority | 90,000 | $93,304 | 0.70% | 9/15/19 | Finance - Services |
| Idaho Bond Bank Authority Rev Ser B | 100,000 | $102,557 | 0.77% | 9/15/24 | Diversified Operations |
| Idaho Falls ID Electric | 140,000 | $164,895 | 1.24% | 4/1/19 | Utility - Electric Power |
| Idaho Health Fac Ath Holy Cross Rev | 50,000 | $50,089 | 0.38% | 12/1/28 | Medical - Hospitals |
| Idaho Health Facs Auth Rev Ref. | 110,000 | $110,589 | 0.83% | 12/1/14 | Medical - Hospitals |
| Idaho Health Facs Auth Corp | 115,000 | $115,575 | 0.87% | 12/1/22 | Medical - Hospitals |
| Idaho Health Facs Aith Rev | 200,000 | $216,800 | 1.63% | 12/1/23 | Medical - Hospitals |
| Idaho Housing & Finance Assoc. | 100,000 | $109,660 | 0.82% | 6/1/17 | Schools |
| Idaho Housing & Finance Assoc | 200,000 | $214,128 | 1.61% | 7/15/24 | Transportation - Services |
| Idaho Housing & Finance GARVEE TR-A | 250,000 | $251,800 | 1.89% | 7/15/23 | Roads |
| Idaho Housing & Finance GARVEE TR-A | 50,000 | $52,231 | 0.39% | 7/15/27 | Roads |
| Idaho Housing & Fin Ass SF Rev | 100,000 | $102,846 | 0.77% | 7/1/28 | Housing |
| Idaho State Building Authority | 110,000 | $112,215 | 0.84% | 9/1/23 | Building - Resident/Commercl |
| Idaho State University Ref & Impt | 150,000 | $150,048 | 1.13% | 4/1/17 | State Education |
| Idaho State University Rev. | 220,000 | $226,153 | 1.70% | 4/1/24 | State Education |
| Jefferson & Madison SCD 251 Rigby | 100,000 | $103,461 | 0.78% | 9/1/24 | General Obligations |
| Jerome ID Urban Renewal District | 200,000 | $202,952 | 1.52% | 9/1/13 | Real Estate - Development |
| Jerome Lincoln Gooding Co's JSC 261 | 125,000 | $131,281 | 0.99% | 9/15/18 | General Obligations |
| Jerome Lincoln Gooding Co's JSD 261 | 250,000 | $272,950 | 2.05% | 9/15/22 | General Obligations |
| Kootenai-Shonshone Area Librarys | 220,000 | $230,652 | 1.73% | 8/1/21 | General Obligations |
| Latah Nez Perce Clearwater JSD 283 | 190,000 | $198,685 | 1.49% | 8/15/27 | General Obligations |
| Lemhi County ID GO | 100,000 | $105,222 | 0.79% | 8/1/15 | General Obligations |
| Madison Co. SCD # 321 Rexburg UTGO | 410,000 | $420,430 | 3.16% | 8/15/24 | General Obligations |
| Madison Co. SCD # 321 Rexburg UTGO | 250,000 | $252,360 | 1.90% | 8/15/26 | Schools |
| Meridian ID Free Library District | 100,000 | $101,129 | 0.76% | 8/1/15 | General Obligations |
| Minidoka & Jerome JSD # 331 | 75,000 | $77,852 | 0.58% | 8/15/18 | General Obligations |
| Minidoka & Jerome JSD # 331 | 75,000 | $76,883 | 0.58% | 8/15/20 | General Obligations |
| Minidoka & Jerome JSD 331 | 225,000 | $225,731 | 1.70% | 8/15/24 | General Obligations |
| Minidoka & Jerome JSD # 331 | 160,000 | $160,755 | 1.21% | 8/15/25 | General Obligations |
| Moscow Idaho Sewer Revenue | 200,000 | $205,344 | 1.54% | 5/1/28 | Utilities - Sewer |
| Nampa Idaho Series B | 200,000 | $209,464 | 1.57% | 8/1/20 | General Obligations |
| Nez Perce County (Jail) 2007 COP | 150,000 | $154,862 | 1.16% | 2/1/21 | Municipal Leases |
| Owyhee & Canyon Co SD 370 Homedale | 160,000 | $182,118 | 1.37% | 8/15/16 | Schools |
| Owyhee & Elmore SD 365 Grandview | 350,000 | $370,052 | 2.78% | 8/15/27 | Schools |
| Payette Co ID SCD #373 | 100,000 | $107,856 | 0.81% | 9/15/24 | Schools |
| Pocatello ID Water Rev | 100,000 | $100,763 | 0.76% | 2/1/24 | Utility - Water Supply |
| Pocatello ID. Water Revenue | 350,000 | $357,287 | 2.68% | 2/1/26 | Utility - Water Supply |
| Post Falls LID 2004-1 | 300,000 | $299,985 | 2.25% | 5/1/21 | Real Estate - Development |
| Troy ID Sewer System | 20,000 | $20,021 | 0.15% | 2/1/10 | Utilities - Sewer |
| University of Idaho Rev.s | 200,000 | $211,234 | 1.59% | 4/1/19 | State Education |
| University of Idaho Rev's | 260,000 | $273,671 | 2.06% | 4/1/20 | State Education |
| Valley & Adams JSD # 421 McCall | 135,000 | $139,119 | 1.05% | 8/1/22 | General Obligations |
| Valley & Adams JSD 421 McCall | 290,000 | $295,684 | 2.22% | 8/1/24 | Schools |
| TOTAL | $13,310,003 | 100.00% | |||
| *Fair valued, see explanation below | |||||
Fair Value Measurments Disclosure:
The Funds adopted Financial Accounting Standards Board Statement
of Financial Accounting Standards No. 157, "Fair Value Measurements"
("FAS 157"), effective December 1, 2007 (March 30, 2007 for Core Fund).
In accordance with FAS 157, fair value is defined as the price that the Fund
would receive to sell an investment or pay to transfer a liabilityin an orderly
transaction with an independent buyer in the principal market, or in the absence
of a principal market the most advantageous market for the investment or liability.
FAS 157 establishes a three-tier hierarchy to distinguish between (1) inputs
that reflect the assumptions market participants would use in pricing an asset
or liability developed based on market data obtained from sources independent
of the reporting entity (observable inputs) and (2) inputs that reflect the
reporting entity's own assumptions about the assumptions market participants
would use in pricing an asset or liability developed based on the best information
available in the circumstances (unobservable inputs) and to establish classification
of fair value measurements for disclosure purposes. Various inputs are used
in determining the value of the Fund's investments. The inputs are summarized
in the three broad levels listed below.
Level 1 — quoted prices in active markets for identical investments
Level 2 — other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 — significant unobservable inputs (including the Fund's own assumptions
in determining the fair value of investments)
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 August 31, 2009 in valuing the Funds'
investments carried at value:
LEVEL |
VALUATION INPUTS |
INVESTMENTS IN SECURITIES |
|||||
| STBFX | SBFIX | SCORX | SSGFX | SSIFX | NITEX | ||
| LEVEL 1 | Quoted Prices | $- | $- | $3,379,333 | $14,959,154 | $45,198,502 | $- |
| LEVEL 2 | Other Significant Observable Inputs | $3,461,270 | $3,336,633 | $1,344,954 | $- | $- | $12,708,410 |
| LEVEL 3 | Significant Unobservable Inputs | $- | $- | $- | $- | $- | $601,593 |
| TOTAL | $3,461,270 | $3,336,633 | $4,724,287 | $14,959,154 | $45,198,502 | $13,310,003 | |
|
Level 3 Roll-Forward |
|
| Beginning Balance | $599,236 |
Total unrealized gains or losses |
$2,357 |
| Ending Balance | $601,593 |
Odd Lots:
The bid-side valuations provided by the independent pricing service are for
institutional "round-lot" holdings ("Round Lots"). Round
Lots consist of 100 bonds (approximately $100,000 each). Some of the Fund's
holdings consist of less than an institutional Round Lot and are considered
"Odd Lots." Odd Lots trade at a discount to Round Lots to compensate
for the effect of the fixed costs associated with any trade. To reflect this
discount, the Fund applies a discount to the valuation of Odd Lot holdings as
shown in the following chart:
Total Face Value |
Adjustment to Price |
Under 10,000 |
-0.750 |
10,000-24,999 |
-0.625 |
25,000-49,999 |
-0.500 |
50,000-74,999 |
-0.375 |
75,000-99,999 |
-0.250 |
| 100,000 and up | none |
In April 2009, the Financial Accounting Standards Board ("FASB")
issued FASB Staff Position No. 157-4, Determining Fair Value When the Volume
and Level of Activity for the Asset or Liability Have Significantly Decreased
and Identifying Transactions That Are Not Orderly ("FSP 157-4"). FSP
157-4 provides additional guidance for estimating fair value in accordance with
FASB Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
("FAS 157"), when the volume and level of activity for the asset or
liability have significantly decreased as well as guidance on identifying circumstances
that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal
years and interim periods ending after June 15, 2009. Management is currently
evaluating the impact the adoption of FSP 157-4 will have on the Funds' financial
statement disclosures.
Item 2. Controls and Procedures
Internal control over financial reporting is under the supervision
of the principal executive and financial officers. On October 21, 2009, Mr.
Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed
the internal control procedures for Saturna Investment Trust and found them
reasonable and adequate.
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/ Nicholas Kaiser
Nichola Kaiser, President
Date: October 26, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.
By:
/s/ Nicholas Kaiser
Nicholas Kaiser, President
Date: October 26, 2009
By:
/s/ Christopher Fankhauser
Christopher Fankhauser, Treasurer
Date: October 26, 2009
