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, 2011
Date of reporting period: August 31, 2011
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 | ||||
| Issuer | Coupon / Maturity | Face Amount | Market Value | Percentage of Assets |
| Certificate of Deposit - 3.8% | ||||
| Finance | ||||
| American Express Bank Med. Term CD | 4.75% due 12/24/2013 | $220,000 | $236,827 | 3.8% |
| Corporate Bonds - 56.4% | ||||
| Banking | ||||
| Bank of New York Mellon | 6.375% due 04/01/2012 | 160,000 | 165,307 | 2.6% |
| Computers | ||||
| International Business Machines | 5.05% due 10/22/2012 | 135,000 | 141,921 | 2.2% |
| Oracle | 3.75% due 07/08/2014 | 250,000 | 270,908 | 4.3% |
| 385,000 | 412,829 | 6.5% | ||
| Diversified Operations | ||||
| General Electric Capital Corp | 5.25% due 10/19/2012 | 100,000 | 104,711 | 1.7% |
| Energy | ||||
| Noble | 5.875% due 06/01/2013 | 190,000 | 205,294 | 3.3% |
| Finance | ||||
| Blackrock | 3.50% due 12/10/2014 | 250,000 | 267,287 | 4.2% |
| HSBC Finance | 6.375% due 10/15/2011 | 100,000 | 100,565 | 1.6% |
| PNC Funding | 5.40% due 06/10/2014 | 200,000 | 220,751 | 3.5% |
| Protective Life Secured Trust | 5.00% due 05/15/2013 | 200,000 | 207,586 | 3.3% |
| 750,000 | 796,189 | 12.6% | ||
| Food & Food Products | ||||
| Coca Cola Hellenic | 5.125% due 09/17/2013 | 100,000 | 106,944 | 1.7% |
| Insurance | ||||
| Berkshire Hathaway Financial | 4.75% due 05/15/2015 | 100,000 | 102,899 | 1.6% |
| Machinery | ||||
| Stanley Works | 4.90% due 11/01/2012 | 180,000 | 187,379 | 3.0% |
| Medical | ||||
| Astrazeneca | 5.40% due 09/15/2012 | 125,000 | 131,209 | 2.1% |
| Metal Ores | ||||
| Rio Tinto Finance | 8.95% due 05/01/2014 | 150,000 | 179,927 | 2.9% |
| Teck Resources | 9.75% due 05/15/2014 | 180,000 | 217,341 | 3.4% |
| Xstrata Canada | 7.35% due 06/05/2012 | 200,000 | 208,801 | 3.3% |
| 530,000 | 606,069 | 9.6% | ||
| Telecommunications | ||||
| Deutsche Telecom Int . Fin. | 5.25% due 07/22/2013 | 250,000 | 267,069 | 4.2% |
| Verizon New England | 4.75% due 10/01/2013 | 129,000 | 136,976 | 2.2% |
| 379,000 | 404,045 | 6.4% | ||
| Transportation | ||||
| SeaRiver Maritime | 0.00% due 09/01/2012 | 202,000 | 198,095 | 3.1% |
| Utilities | ||||
| Florida Power & Light | 5.625% due 09/01/2011 | 140,000 | 140,000 | 2.2% |
| Total corporate bonds | 3,561,000 | 3,560,970 | 56.4% | |
| Foreign Government Bonds - 7.6% | ||||
| Canadian Government | ||||
| Canada Government | 2.375% due 09/10/2014 | 230,000 | 242,125 | 3.8% |
| Ontario Prov. Canada | 4.10% due 06/16/2014 | 220,000 | 239,779 | 3.8% |
| 450,000 | 481,904 | 7.6% | ||
| Municipal Bonds - 13.4% | ||||
| General Obligation | ||||
| Commerce Charter TWP Michigan | 5.50% due 12/01/2013 | 125,000 | 135,231 | 2.1% |
| Manhattan Kansas | 3.276% due 12/01/2013 | 180,000 | 187,002 | 3.0% |
| Passaic NJ Taxable Pension GO | 5.00% due 02/01/2013 | 100,000 | 101,317 | 1.6% |
| Southwestern MI Comm. College | 4.875% due 05/01/2015 | 125,000 | 135,618 | 2.2% |
| 530,000 | 559,168 | 8.9% | ||
| Revenue | ||||
| Dawson Springs KY ISD Bldg.1 | 3.60% due 08/01/2013 | 95,000 | 99,461 | 1.6% |
| Rhode Island Econ. Dev. Corp. | 4.52% due 05/15/2013 | 175,000 | 181,641 | 2.9% |
| 270,000 | 281,102 | 4.5% | ||
| Total municipal bonds | 800,000 | 840,270 | 13.4% | |
| U.S. Government Bonds - 5.7% | ||||
| Treasury Notes | ||||
| U.S. Treasury Note | 1.50% due 12/31/2013 | 350,000 | 360,309 | 5.7% |
| Total investments | (cost = $5,340,165) | $5,161,000 | 5,480,280 | 86.9% |
| Other assets (net of liabilities) | 826,204 | 13.1% | ||
| Total net assets | $6,306,484 | 100.0% | ||
| (1) Fair valued, see "Odd Lots" | ||||
| Saturna Investment Trust, Sextant Bond Income Fund | ||||
| Issuer | Coupon / Maturity | Face Amount | Market Value | Percentage of Assets |
| Corporate Bonds - 44.7% | ||||
| Automotive | ||||
| AutoZone | 5.50% due 11/15/2015 | $95,000 | $105,420 | 1.8% |
| Banking | ||||
| CitiCorp | 7.25% due 10/15/2011 | 50,000 | 50,330 | 0.8% |
| Building | ||||
| Masco | 7.125% due 08/15/2013 | 60,000 | 64,207 | 1.1% |
| Chemicals | ||||
| Air Products & Chemicals | 8.75% due 04/15/2021 | 50,000 | 70,402 | 1.2% |
| Electronics | ||||
| Phillips Electronics | 7.25% due 08/15/2013 | 75,000 | 83,603 | 1.4% |
| Energy | ||||
| Baker Hughes | 6.875% due 01/15/2029 | 100,000 | 125,704 | 2.1% |
| ConocoPhillips | 6.00% due 01/15/2020 | 150,000 | 184,164 | 3.1% |
| StatoilHydro | 2.90% due 10/15/2014 | 200,000 | 211,689 | 3.5% |
| 450,000 | 521,557 | 8.7% | ||
| Finance | ||||
| Goldman Sachs | 5.95% due 01/15/2027 | 180,000 | 175,168 | 2.9% |
| Morgan Stanley Dean Witter | 6.75% due 10/15/2013 | 50,000 | 53,203 | 0.9% |
| Paine Webber Group | 7.625% due 02/15/2014 | 50,000 | 55,909 | 0.9% |
| 280,000 | 284,280 | 4.7% | ||
| Food Production | ||||
| H.J. Heinz | 6.00% due 03/15/2012 | 75,000 | 76,971 | 1.3% |
| Insurance | ||||
| Allstate | 7.50% due 06/15/2013 | 50,000 | 54,700 | 0.9% |
| Progressive | 7.00% due 10/01/2013 | 75,000 | 82,812 | 1.4% |
| St. Pauls Travelers Insurance | 5.50% due 12/01/2015 | 125,000 | 140,231 | 2.3% |
| 250,000 | 277,743 | 4.6% | ||
| Machinery | ||||
| Deere & Co. | 8.10% due 05/15/2030 | 95,000 | 135,278 | 2.2% |
| Medical | ||||
| Pharmacia | 6.50% due 12/01/2018 | 100,000 | 123,930 | 2.1% |
| Metal Ores | ||||
| BHP Finance U.S.A. | 5.25% due 12/15/2015 | 125,000 | 142,427 | 2.4% |
| Retail | ||||
| Wal-Mart Stores | 7.25% due 06/01/2013 | 45,000 | 50,133 | 0.8% |
| Transportation | ||||
| SeaRiver Maritime | 0.00% due 09/01/2012 | 225,000 | 220,650 | 3.7% |
| Southwest Airlines | 6.50% due 03/01/2012 | 75,000 | 76,881 | 1.3% |
| 300,000 | 297,531 | 5.0% | ||
| Utilities | ||||
| Commonwealth Edison | 7.50% due 07/01/2013 | 50,000 | 55,367 | 0.9% |
| Entergy Louisiana | 5.40% due 11/01/2024 | 200,000 | 223,623 | 3.7% |
| Florida Power & Light | 5.95% due 10/01/2033 | 100,000 | 120,577 | 2.0% |
| 350,000 | 399,567 | 6.6% | ||
| Total corporate bonds | 2,400,000 | 2,683,379 | 44.7% | |
| Foreign Government Bonds - 4.1% | ||||
| Canadian Government | ||||
| Quebec Canada Yankee | 7.125% due 02/09/2024 | 175,000 | 243,425 | 4.1% |
| Municipal Bonds - 37.5% | ||||
| General Obligation | ||||
| City of Burlington Taxable GO 2009 Series B | 5.75% due 11/01/2028 | 160,000 | 170,034 | 2.8% |
| Dell Rapids SCD 49-3 | 6.257% due 01/15/2030 | 200,000 | 212,712 | 3.6% |
| Dupage Co. Il CCD #502 | 5.50% due 01/01/2026 | 150,000 | 158,530 | 2.6% |
| Idaho Hsg. & Fin. GARVEE BAB A-2 | 5.379% due 07/15/2020 | 180,000 | 198,455 | 3.3% |
| Milan Co. MI Area Schools | 6.45% due 05/01/2024 | 150,000 | 162,339 | 2.7% |
| San Marcos Texas ULTD GO BAB | 6.028% due 08/15/2030 | 200,000 | 215,368 | 3.6% |
| Springville UT GO BAB | 5.30% due 05/01/2031 | 240,000 | 246,790 | 4.1% |
| 1,280,000 | 1,364,228 | 22.7% | ||
| Revenue | ||||
| American Municipal Power Ohio Rev. | 7.20% due 02/15/2029 | 250,000 | 296,078 | 4.9% |
| Graves Co. KY SCD Bldg. Lease Rev. | 5.95% due 06/01/2024 | 150,000 | 159,579 | 2.7% |
| Johnson Co. KS Bldg. Ls./Pr. REV. BAB | 4.60% due 09/01/2026 | 250,000 | 253,427 | 4.2% |
| Oklahoma City Fin. Auth. Ed. Lease Rev. | 6.60% due 09/01/2022 | 160,000 | 181,422 | 3.0% |
| 810,000 | 890,506 | 14.8% | ||
| Total municipal bonds | 2,090,000 | 2,254,734 | 37.5% | |
| Total investments | (cost = $4,812,053) | $4,665,000 | 5,181,538 | 86.3% |
| Other assets (net of liabilities) | 821,969 | 13.7% | ||
| Total net assets | $6,003,507 | 100.0% | ||
| Saturna Investment Trust, Sextant Core Fund | ||||
| Common Stocks - 54.9% | Number of Shares | Market Value | Country1 | Percentage of Assets |
| Automotive | ||||
| Autoliv | 700 | $39,074 | 0.7% | |
| Banking | ||||
| Australia & New Zealand Banking ADS | 3,000 | 65,730 | Australia | 1.2% |
| JP Morgan Chase | 1,000 | 37,560 | 0.7% | |
| PNC Bank | 600 | 30,084 | 0.5% | |
| Toronto-Dominion Bank | 550 | 43,368 | Canada | 0.8% |
| Visa | 600 | 52,728 | 0.9% | |
| 229,470 | 4.1% | |||
| Building | ||||
| CRH ADS | 600 | 10,800 | Ireland | 0.2% |
| Lowe's | 1,400 | 27,902 | 0.5% | |
| 38,702 | 0.7% | |||
| Chemicals | ||||
| BASF ADS | 400 | 28,484 | Germany | 0.5% |
| Praxair | 700 | 68,943 | 1.2% | |
| RPM International | 1,000 | 20,840 | 0.4% | |
| 118,267 | 2.1% | |||
| Computers | ||||
| Adobe Systems2 | 1,100 | 27,764 | 0.5% | |
| Apple2 | 250 | 96,208 | 1.7% | |
| Hewlett-Packard | 1,200 | 31,236 | 0.5% | |
| Intel | 3,000 | 60,390 | 1.1% | |
| Taiwan Semiconductor ADS | 4,534 | 54,272 | Taiwan | 1.0% |
| 269,870 | 4.8% | |||
| Cosmetics & Toiletries | ||||
| Procter & Gamble | 900 | 57,312 | 1.0% | |
| Diversified Operations | ||||
| 3M | 600 | 49,788 | 0.9% | |
| Honeywell International | 850 | 40,638 | 0.7% | |
| 90,426 | 1.6% | |||
| Energy | ||||
| Cenovus Energy | 1,000 | 36,080 | Canada | 0.6% |
| ConocoPhillips | 1,250 | 85,087 | 1.5% | |
| Devon Energy | 1,200 | 81,396 | 1.4% | |
| NextEra Energy | 1,200 | 68,064 | 1.2% | |
| Statoil ADS | 2,003 | 48,252 | Norway | 0.9% |
| Total ADS | 1,100 | 53,944 | France | 1.0% |
| Williams Companies | 3,000 | 80,970 | 1.4% | |
| 453,793 | 8.0% | |||
| Food Production | ||||
| Companhia de Bebidas ADR | 2,000 | 71,280 | Brazil | 1.3% |
| General Mills | 2,000 | 75,820 | 1.4% | |
| Heinz (H.J.) | 1,500 | 78,960 | 1.4% | |
| PepsiCo | 1,000 | 64,430 | 1.1% | |
| Unilever ADS | 1,850 | 62,419 | United Kingdom | 1.1% |
| 352,909 | 6.3% | |||
| Hotels & Motels | ||||
| Orient-Express Hotels2 | 1,000 | 7,840 | Global3 | 0.1% |
| Instruments - Control | ||||
| Parker Hannifin | 500 | 36,715 | 0.7% | |
| Insurance | ||||
| Chubb | 750 | 46,418 | 0.8% | |
| Medical | ||||
| Eli Lilly | 1,000 | 37,510 | 0.7% | |
| Express Scripts2 | 1,200 | 56,328 | 1.0% | |
| GlaxoSmithKline ADS | 500 | 21,415 | United Kingdom | 0.4% |
| Humana | 1,000 | 77,640 | 1.4% | |
| Johnson & Johnson | 900 | 59,220 | 1.0% | |
| Novartis ADR | 950 | 55,537 | Switzerland | 1.0% |
| Novo Nordisk ADS | 400 | 42,664 | 0.7% | |
| Sanofi ADR | 1,037 | 37,923 | 0.7% | |
| UnitedHealth Group | 2,000 | 95,040 | 1.7% | |
| 483,277 | 8.6% | |||
| Metal Ores | ||||
| Alcoa | 2,000 | 25,600 | 0.5% | |
| Anglo American ADR | 1,119 | 23,219 | South Africa | 0.4% |
| BHP Billiton ADS | 650 | 55,361 | Australia | 1.0% |
| Freeport-McMoRan Copper & Gold | 1,000 | 47,110 | Indonesia4 | 0.8% |
| 151,290 | 2.7% | |||
| Paper & Paper Products | ||||
| Kimberly-Clark | 925 | 63,973 | .1% | |
| Publishing | ||||
| McGraw-Hill | 1,000 | 42,110 | 0.7% | |
| Pearson ADS | 3,100 | 56,017 | United Kingdom | 1.0% |
| 98,127 | 1.7% | |||
| Shoes & Related Apparel | ||||
| Nike | 900 | 77,985 | 1.4% | |
| Steel | ||||
| Nucor | 800 | 28,864 | 0.5% | |
| Telecommunications | ||||
| AT&T | 2,600 | 74,048 | 1.3% | |
| China Mobile ADS | 500 | 25,585 | China | 0.4% |
| Harris | 800 | 32,280 | 0.6% | |
| Telefonica ADS | 2,400 | 50,040 | Spain | 0.9% |
| 181,953 | 3.2% | |||
| Tools | ||||
| Stanley Black & Decker | 446 | 27,643 | 0.5% | |
| Transportation | ||||
| Canadian National Railway | 800 | 59,040 | Canada | 1.1% |
| LAN Airlines ADS | 3,500 | 98,525 | Chile | 1.7% |
| 157,565 | 2.8% | |||
| Utilities | ||||
| Idacorp | 1,400 | 53,480 | 1.0% | |
| NRG Energy2 | 1,200 | 28,128 | 0.5% | |
| 81,608 | 1.5% | |||
| Total equities | $3,093,081 | 54.9% | ||
| Issuer | Coupon / Maturity | Face Amount | Market Value | Percentage of Assets |
| Corporate Bonds - 23.6% | ||||
| Banking | ||||
| Goldman Sachs | 5.625 due 01/15/2017 | $100,000 | $103,598 | 1.8% |
| Building | ||||
| Home Depot | 5.40% due 03/01/2016 | 100,000 | 113,585 | 2.0% |
| Chemicals | ||||
| EI du Pont de Nemours | 5.25% due 12/15/2016 | 100,000 | 116,228 | 2.1% |
| Computers | ||||
| Oracle | 5.25% due 01/15/2016 | 100,000 | 114,972 | 2.0% |
| Diversified Operations | ||||
| General Electrical Capital | 5.35% due 04/15/2022 | 101,000 | 103,535 | 1.8% |
| Electronics | ||||
| Emerson Electric | 5.375% due 10/15/2017 | 100,000 | 116,706 | 2.1% |
| Energy | ||||
| Boardwalk Pipelines | 5.50% due 02/01/2017 | 100,000 | 110,266 | 2.0% |
| Financial Services | ||||
| Countrywide Home Loan | 6.73% due 04/17/2013 | 100,000 | 101,534 | 1.8% |
| Western Union | 5.93% due 10/01/2016 | 30,000 | 33,949 | 0.6% |
| 130,000 | 135,483 | 2.4% | ||
| Insurance | ||||
| Berkley WR Corp | 5.875% due 02/15/2013 | 100,000 | 104,002 | 1.8% |
| Office Equipment | ||||
| Staples | 7.375% due 10/01/2012 | 90,000 | 95,891 | 1.7% |
| Telecommunications | ||||
| Bellsouth | 4.75% due 11/15/2012 | 100,000 | 104,374 | 1.9% |
| Transportation | ||||
| SeaRiver Maritime | 0.00% due 09/01/2012 | 112,000 | 109,835 | 2.0% |
| Total corporate bonds | 1,233,000 | 1,328,475 | 23.6% | |
| Municipal Bonds - 3.6% | ||||
| General Obligation | ||||
| Lake Washington SD 414, WA BAB | 4.906% due 12/01/2027 | 100,000 | 102,291 | 1.8% |
| Skagit SD#1 | 4.613% due 12/01/2022 | 100,000 | 103,409 | 1.8% |
| $200,000 | 205,700 | 3.6% | ||
| Total investments | (cost = $4,352,138) | 4,627,256 | 82.1% | |
| Other assets (net of liabilities) | 1,011,052 | 17.9% | ||
| Total net assets | $5,638,308 | 100.0% | ||
| (1) Country of domicile unless otherwise indicated; equities are issued from U.S. domiciled companies where no Country is listed | ||||
| (2) Non-income producing security | ||||
| (3) Denotes a worldwide presence, comprising an entity with exposure to many regions and countries | ||||
| (4) Denotes country of primary exposure | ||||
| ADS: American Depositary Share | ||||
| ADR: American Depositary Receipt | ||||
| Saturna Investment Trust, Sextant Growth Fund | |||
| Common Stocks | Shares | Market Value | Percentage of Assets |
| Building | |||
| Lowe's | 15,000 | $298,950 | 1.3% |
| Computers | |||
| 3D Systems1 | 10,000 | 181,700 | 0.8% |
| Adobe Systems1 | 11,000 | 277,640 | 1.2% |
| Apple1 | 4,800 | 1,847,184 | 8.0% |
| Hewlett-Packard | 12,000 | 312,360 | 1.4% |
| Intuit1 | 12,000 | 591,960 | 2.6% |
| Oracle | 19,000 | 533,330 | 2.3% |
| 3,744,174 | 16.3% | ||
| Diversified Operations | |||
| Honeywell International | 10,000 | 478,100 | 2.1% |
| Raytheon | 6,500 | 280,995 | 1.2% |
| 759,095 | 3.3% | ||
| Electronics | |||
| Advanced Micro Devices1 | 20,000 | 136,600 | 0.6% |
| Agilent Technologies1 | 13,000 | 479,310 | 2.1% |
| Trimble Navigation1 | 14,000 | 519,960 | 2.3% |
| 1,135,870 | 5.0% | ||
| Energy | |||
| Devon Energy | 6,000 | 406,980 | 1.8% |
| NextEra Energy | 7,000 | 397,040 | 1.7% |
| Spectra Energy | 13,000 | 337,610 | 1.5% |
| 1,141,630 | 5.0% | ||
| Finance | |||
| Charles Schwab | 25,000 | 308,750 | 1.3% |
| Food Production | |||
| Dr Pepper Snapple | 16,000 | 615,680 | 2.7% |
| PepsiCo | 8,000 | 515,440 | 2.2% |
| 1,131,120 | 4.9% | ||
| Hotels & Motels | |||
| Red Lion Hotels1 | 50,000 | 349,500 | 1.5% |
| Insurance | |||
| Chubb | 7,000 | 433,230 | 1.9% |
| Medical | |||
| Abbott Laboratories | 7,000 | 367,570 | 1.6% |
| Amgen | 3,700 | 204,999 | 0.9% |
| AmSurg1 | 15,000 | 339,450 | 1.5% |
| Johnson & Johnson | 10,000 | 658,000 | 2.9% |
| Pharmaceutical Product Development | 15,000 | 472,200 | 2.1% |
| VCA Antech1 | 8,000 | 148,080 | 0.6% |
| 2,190,299 | 9.6% | ||
| Metal Ores | |||
| Alcoa | 30,000 | 384,000 | 1.7% |
| Publishing | |||
| John Wiley & Sons | 10,000 | 487,900 | 2.1% |
| Real Estate | |||
| LoopNet1 | 20,000 | 351,200 | 1.5% |
| Retail | |||
| Amazon.com1 | 6,000 | 1,291,380 | 5.6% |
| Bed Bath & Beyond1 | 9,000 | 511,740 | 2.2% |
| Best Buy | 10,000 | 255,900 | 1.1% |
| Costco Wholesale | 3,000 | 235,620 | 1.0% |
| CVS Caremark | 10,000 | 359,100 | 1.6% |
| Guess? | 8,000 | 272,880 | 1.2% |
| Staples | 15,000 | 221,100 | 1.0% |
| 3,147,720 | 13.7% | ||
| Steel | |||
| Nucor | 4,000 | 144,320 | 0.6% |
| Technology | |||
| Qualcomm | 5,000 | 257,300 | 1.1% |
| Telecommunications | |||
| AT&T | 10,000 | 284,800 | 1.2% |
| Tools | |||
| Lincoln Electric Holdings | 12,000 | 408,360 | 1.8% |
| Regal-Beloit | 5,500 | 323,345 | 1.4% |
| Stanley Black & Decker | 3,000 | 185,940 | 0.8% |
| 917,645 | 4.0% | ||
| Transportation | |||
| Alaska Air Group1 | 10,000 | 577,300 | 2.5% |
| Boeing | 3,000 | 200,580 | 0.9% |
| Norfolk Southern | 7,000 | 473,760 | 2.1% |
| United Parcel Service | 6,000 | 404,340 | 1.7% |
| 1,655,980 | 7.2% | ||
| Utilities | |||
| Duke Energy | 10,000 | 189,100 | 0.8% |
| Idacorp | 12,000 | 458,400 | 2.0% |
| NRG Energy1 | 10,000 | 234,400 | 1.0% |
| Piedmont Natural Gas | 8,000 | 247,200 | 1.1% |
| Sempra Energy | 6,000 | 315,120 | 1.4% |
| 1,444,220 | 6.3% | ||
| Total investments | (cost = $14,050,291) | 20,567,703 | 89.5% |
| Other assets (net of liabilities) | 2,411,595 | 10.5% | |
| Total net assets | $22,979,298 | 100.0% | |
(1) Non-income producing security
|
|||
| Saturna Investment Trust, Sextant International Fund | ||||
| Common Stocks | Number of Shares | Market Value | Country1 | Percentage of Assets |
| Automotive | ||||
| Nissan Motor ADS | 120,000 | $2,206,800 | Japan | 1.3% |
| Toyota Motor ADS | 20,000 | 1,436,800 | Japan | 0.9% |
| 3,643,600 | 2.2% | |||
| Banking | ||||
| Australia & New Zealand Banking ADS | 80,000 | 1,752,800 | Australia | 1.0% |
| AXA ADS | 17,000 | 270,300 | France | 0.2% |
| ICICI Bank ADS | 45,000 | 1,771,200 | India | 1.0% |
| Mitsubishi UFJ Financial ADR | 400,000 | 1,800,000 | Japan | 1.1% |
| Nomura Holdings ADR | 30,000 | 125,700 | Japan | 0.1% |
| Toronto-Dominion Bank | 40,000 | 3,154,000 | Canada | 1.9% |
| 8,874,000 | 5.3% | |||
| Building | ||||
| Ritchie Bros Auctioneers | 30,000 | 689,700 | Canada | 0.4% |
| Chemicals | ||||
| BASF ADS | 25,000 | 1,780,250 | Germany | 1.1% |
| Potash Corp of Saskatchewan | 65,000 | 3,768,700 | Canada | 2.2% |
| 5,548,950 | 3.3% | |||
| Computers | ||||
| ASML Holding NV | 75,000 | 2,645,250 | Netherlands | 1.6% |
| Dassault Systems ADR | 25,000 | 2,025,000 | France | 1.2% |
| Infosys | 50,000 | 2,581,000 | India | 1.6% |
| Nice Systems ADS2 | 60,000 | 1,872,600 | Israel | 1.1% |
| SAP ADS | 50,000 | 2,725,500 | Germany | 1.6% |
| 11,849,350 | 7.1% | |||
| Energy | ||||
| BP ADS | 50,000 | 1,969,500 | Britain | 1.2% |
| Cenovus Energy | 60,000 | 2,164,800 | Canada | 1.3% |
| EnCana | 40,000 | 1,016,400 | Canada | 0.6% |
| Petroleo Brasileiro ADR | 70,000 | 2,033,500 | Brazil | 1.2% |
| Repsol YPF ADS2 | 80,000 | 2,305,600 | Spain | 1.4% |
| Statoil ADS | 30,173 | 726,868 | Norway | 0.4% |
| Total ADS | 45,000 | 2,206,800 | France | 1.3% |
| Vestas Wind Systems ADR2 | 50,000 | 347,500 | Denmark | 0.2% |
| 12,770,968 | 7.6% | |||
| Food Production | ||||
| Coca-Cola Femsa ADS | 27,557 | 2,722,080 | Mexico | 1.6% |
| Fomento Economico Mex ADS | 20,000 | 1,378,400 | Mexico | 0.8% |
| Unilever ADS | 20,000 | 674,800 | United Kingdom | 0.4% |
| 4,775,280 | 2.8% | |||
| Games/Hobby Production | ||||
| Nintendo | 17,000 | 373,660 | Japan | 0.2% |
| Hotels & Motels | ||||
| Orient-Express Hotels Class A2 | 170,000 | 1,332,800 | Global3 | 0.8% |
| Insurance | ||||
| ING Groep ADS2 | 167,852 | 1,461,991 | Netherlands | 0.9% |
| Machinery | ||||
| Komatsu ADS | 50,000 | 1,337,500 | Japan | 0.8% |
| Nidec ADR | 26,703 | 586,665 | China4 | 0.3% |
| 1,924,165 | 1.1% | |||
| Medical | ||||
| GlaxoSmithKline ADS | 50,000 | 2,141,500 | United Kingdom | 1.3% |
| Novartis ADR | 60,000 | 3,507,600 | Switzerland | 2.1% |
| Novo Nordisk ADS | 25,000 | 2,666,500 | Denmark | 1.6% |
| Shire ADR | 32,000 | 3,107,200 | United Kingdom | 1.9% |
| Teva Pharmaceutical Industries ADS | 50,000 | 2,068,000 | Israel | 1.2% |
| 13,490,800 | 8.1% | |||
| Metal Ores | ||||
| Anglo American ADR | 110,000 | 2,282,500 | South Africa4 | 1.4% |
| Barrick Gold | 60,000 | 3,045,000 | Canada | 1.8% |
| BHP Billiton ADS | 20,000 | 1,703,400 | Australia | 1.0% |
| Newcrest Mining ADS | 67,301 | 2,880,483 | Australia | 1.7% |
| Teck Resources Class B | 100,000 | 4,433,000 | Canada | 2.6% |
| Tenaris ADR | 2,500 | 83,000 | Argentina4 | 0.1% |
| Vale ADR | 60,000 | 1,694,400 | Brazil | 1.0% |
| 16,121,783 | 9.6% | |||
| Office Equipment | ||||
| Canon ADS | 50,000 | 2,362,000 | Japan | 1.4% |
| Paper & Paper Products | ||||
| Fibria Celulose | 150,000 | 1,485,000 | Brazil | 0.9% |
| Metso ADS | 12,100 | 458,953 | Finland | 0.3% |
| 1,943,953 | 1.2% | |||
| Publishing | ||||
| Pearson ADS | 90,000 | 1,626,300 | United Kingdom | 1.0% |
| Telecommunications | ||||
| America Movil ADS | 60,000 | 1,533,600 | Mexico | 0.9% |
| BCE | 60,000 | 2,407,800 | Canada | 1.4% |
| China Mobile ADS | 25,000 | 1,279,250 | China | 0.8% |
| Millicom | 10,000 | 1,125,538 | Global3 | 0.7% |
| PT Indosat ADR | 20,000 | 633,000 | Indonesia | 0.4% |
| SK Telecom ADR | 30,000 | 482,400 | South Korea | 0.3% |
| Telecom New Zealand ADS | 20,000 | 218,200 | New Zealand | 0.1% |
| Telecomunicacoes de Sao Paulo ADR | 50,000 | 1,588,500 | Brazil | 0.9% |
| Telefonica ADS | 90,000 | 1,876,500 | Spain | 1.1% |
| Telefonos de Mexico ADS Class L | 30,000 | 513,300 | Mexico | 0.3% |
| Telus | 45,000 | 2,355,300 | Canada | 1.4% |
| Turkcell Iletisim Hizmetleri ADR2 | 70,000 | 788,200 | Turkey | 0.5% |
| Vodafone Group ADS | 50,000 | 1,317,000 | United Kingdom | 0.8% |
| 16,118,588 | 9.6% | |||
| Transportation | ||||
| Canadian Pacific Railway | 32,000 | 1,837,440 | Canada | 1.1% |
| Copa Holdings Class A | 60,000 | 4,147,200 | Panama | 2.5% |
| LAN Airlines ADS | 130,000 | 3,659,500 | Chile | 2.2% |
| Ryanair Holdings ADS2 | 20,000 | 528,400 | Ireland | 0.3% |
| 10,172,540 | 6.1% | |||
| Utilities | ||||
| BG Group ADS | 14,000 | 1,523,760 | United Kingdom | 0.9% |
| CPFL Energia ADR | 90,000 | 2,378,700 | Brazil | 1.4% |
| Enersis ADS | 65,000 | 1,307,800 | Chile | 0.8% |
| Korea Electric Power ADS2 | 20,000 | 210,200 | South Korea | 0.1% |
| 5,420,460 | 3.2% | |||
| Total investments | (cost = $99,790,406) | 120,500,888 | 71.9% | |
| Other assets (net of liabilities) | 47,040,033 | 28.1% | ||
| Total net assets | $167,540,921 | 100.0% | ||
| (1) Country of domicile unless otherwise indicated | ||||
| (2) Non-income producing security | ||||
| (3) Denotes a worldwide presence, comprising an entity with exposure to many regions and countries | ||||
| (4) Denotes country of primary exposure | ||||
| ADS: American Depositary Share | ||||
| ADR: American Depositary Receipt | ||||
| Saturna Investment Trust, Idaho Tax Exempt Fund | ||||
| Issuer | Coupon / Maturity | Face Amount | Market Value | Percentage of Assets |
| Electric Power | ||||
| Idaho Falls Electric Revenue | 6.75% due 04/01/2019 | $120,000 | $135,142 | 0.9% |
| Financial Services | ||||
| Boise City General Fund Revenue Series A | 5.20% due 12/01/2017 | 160,000 | 161,517 | 1.0% |
| Boise City General Fund Revenue Series A | 5.25% due 12/01/2018 | 100,000 | 100,921 | 0.7% |
| Idaho Bond Bank Authority1 | 4.00% due 09/15/2019 | 90,000 | 100,204 | 0.6% |
| 350,000 | 362,642 | 2.3% | ||
| General Obligation | ||||
| Ada & Canyon Cos. JSD #2 Meridian | 5.00% due 08/15/2020 | 165,000 | 184,602 | 1.2% |
| Ada & Canyon Cos. JSD #2 Meridian | 5.00% due 08/15/2021 | 155,000 | 172,664 | 1.1% |
| Ada & Canyon Cos. JSD #2 Meridian1 | 5.50% due 07/30/2015 | 50,000 | 58,607 | 0.4% |
| Ada & Canyon Cos. JSD #3 Kuna | 5.00% due 09/15/2019 | 500,000 | 563,275 | 3.6% |
| Bingham County SCD #52 Snake HS | 4.00% due 09/01/2020 | 250,000 | 280,370 | 1.8% |
| Bingham County SCD #52 Snake HS | 4.00% due 09/01/2027 | 200,000 | 209,180 | 1.4% |
| Bingham County SCD #55 Blackfoot | 4.65% due 08/01/2017 | 285,000 | 296,380 | 1.9% |
| Blaine County, Idaho Series A | 4.05% due 08/01/2023 | 150,000 | 160,639 | 1.0% |
| Bonneville & Bingham Cos. JSD #93 | 4.50% due 09/15/2016 | 150,000 | 169,771 | 1.1% |
| Boundary County SCD #101 | 4.00%due 08/15/2021 | 240,000 | 260,311 | 1.7% |
| Canyon Co. ID SCD #131 | 5.00% due 08/15/2023 | 105,000 | 112,791 | 0.7% |
| Canyon County SCD #131 Nampa | 4.75% due 08/15/2019 | 325,000 | 352,911 | 2.3% |
| Canyon County SCD #134 Middleton | 4.65% due 07/31/2016 | 170,000 | 183,986 | 1.2% |
| Canyon County SCD #139 Vallivue | 4.35% due 09/15/2025 | 350,000 | 363,762 | 2.4% |
| Clark Co. SCD | 2.50% due 08/01/2016 | 280,000 | 298,105 | 1.9% |
| Fremont & Madison Cos. JSD #215 | 4.125% due 09/01/2024 | 130,000 | 139,770 | 0.9% |
| Fremont & Madison Cos. JSD #215 | 4.00% due 08/15/2019 | 200,000 | 225,220 | 1.5% |
| Jefferson & Madison Cos. SCD #251 Rigby | 4.25% due 09/01/2024 | 100,000 | 108,299 | 0.7% |
| Jerome, Lincoln, & Gooding Cos. JSD #261 | 3.75% due 09/15/2018 | 125,000 | 137,030 | 0.9% |
| Jerome, Lincoln, & Gooding Cos. JSD #261 | 5.00% due 09/15/2022 | 250,000 | 278,507 | 1.8% |
| Kootenai-Shonshone Area Libraries | 4.25% due 08/01/2021 | 220,000 | 233,889 | 1.5% |
| Latah, Nez Perce, & Clearwater JSD #283 | 4.50% due 08/15/2027 | 190,000 | 205,755 | 1.3% |
| Lemhi County | 4.20% due 08/01/2015 | 100,000 | 103,591 | 0.7% |
| Madison County SCD #321 Rexburg | 4.50% due 08/15/2024 | 410,000 | 430,352 | 2.8% |
| Madison County SCD #321 Rexburg | 4.50% due 08/15/2026 | 250,000 | 259,397 | 1.7% |
| Meridian Free Library District | 5% due 08/01/2015 | 100,000 | 101,853 | 0.7% |
| Minidoka & Jerome Cos. JSD #331 | 4.375% due 08/15/2024 | 225,000 | 233,858 | 1.5% |
| Minidoka & Jerome Cos. JSD #331 | 4.50% due 08/15/2025 | 160,000 | 166,096 | 1.1% |
| Minidoka & Jerome Cos. JSD #3311 | 4.50% due 08/15/2018 | 75,000 | 81,780 | 0.5% |
| Minidoka & Jerome Cos. JSD #3311 | 4.50% due 08/15/2020 | 75,000 | 79,978 | 0.5% |
| Nampa Idaho, Series B | 5.00% due 08/1/2020 | 200,000 | 215,848 | 1.4% |
| Owyhee & Canyon Cos. JSD #370 Homedale | 4.55% due 08/15/2016 | 160,000 | 186,562 | 1.2% |
| Owyhee & Elmore Cos. JSD #365 Grand View | 4.00% due 08/15/2027 | 350,000 | 379,102 | 2.4% |
| Payette County SCD #373 | 5.00% due 09/15/2024 | 350,000 | 380,040 | 2.5% |
| Twin Falls & Gooding Cos. JSD #412 | 4.125% due 09/01/2023 | 100,000 | 112,493 | 0.7% |
| Twin Falls ID SCD #411 | 4.30% due 09/15/2025 | 120,000 | 126,538 | 0.8% |
| Valley & Adams Cos. JSD #421 McCall | 4.50% due 08/01/2022 | 135,000 | 143,911 | 0.9% |
| Valley & Adams Cos. JSD #421 McCall | 4.50% due 08/01/2024 | 290,000 | 304,955 | 2.0% |
| Washington & Adams Cos. JSD #432 | 4.00% due 08/15/2019 | 100,000 | 109,092 | 0.7% |
| 7,790,000 | 8,411,270 | 54.4% | ||
| Medical/Hospitals | ||||
| Idaho Health Facility Authority Holy Cross Revenue | 5.00% due 12/01/2022 | 115,000 | 115,325 | 0.8% |
| Idaho Health Facility Authority Holy Cross Revenue | 5.25% due 12/01/2014 | 110,000 | 110,348 | 0.7% |
| Idaho Health Facility Authority Holy Cross Revenue1 | 5.00% due 12/01/2028 | 50,000 | 49,834 | 0.3% |
| Idaho Health Facility Authority Revenue | 6.00% due 12/01/2023 | 200,000 | 228,682 | 1.5% |
| Idaho Health Facility Authority Revenue Group B | 6.25% due 12/01/2033 | 115,000 | 127,228 | 0.8% |
| 590,000 | 631,417 | 4.1% | ||
| Municipal Leases | ||||
| Nez Perce County COP | 4.50% due 02/01/2021 | 150,000 | 155,005 | 1.0% |
| Pollution Control | ||||
| Caldwell ID Par Lien Sewer Revenue 2010 | 4.50% due 09/01/2019 | 100,000 | 115,485 | 0.7% |
| Idaho Bond Bank Authority Revenue, Series A | 4.30% due 09/01/2022 | 135,000 | 140,920 | 0.9% |
| Idaho Bond Bank Authority Revenue, Series A1 | 4.125% due 09/15/2023 | 75,000 | 79,597 | 0.5% |
| Moscow Idaho Sewer Revenue | 4.45% due 05/01/2028 | 200,000 | 209,970 | 1.4% |
| 510,000 | 545,972 | 3.5% | ||
| Real Estate | ||||
| Idaho Housing & Finance Association | 4.80% due 06/01/2017 | 100,000 | 103,366 | 0.7% |
| Idaho Housing & Finance Association1 | 5.65% due 07/02/2028 | 50,000 | 51,365 | 0.3% |
| Idaho State Building Authority Revenue | 4.50% due 09/01/2023 | 110,000 | 113,029 | 0.7% |
| Post Falls LID SPA | 5.00% due 05/01/2021 | 240,000 | 228,154 | 1.5% |
| 500,000 | 495,914 | 3.2% | ||
| State Education | ||||
| Boise State University Revenue | 4.50% due 04/01/2027 | 250,000 | 261,385 | 1.7% |
| Boise State University Revenue | 5.00% due 04/01/2034 | 385,000 | 405,039 | 2.6% |
| Idaho State University Revenue | 4.90% due 04/01/2017 | 150,000 | 153,477 | 1.0% |
| Idaho State University Revenue, Series B | 4.625% due 04/01/2024 | 220,000 | 228,635 | 1.5% |
| University of Idaho Revenue | 5.00% due 04/02/2028 | 225,000 | 241,351 | 1.6% |
| University of Idaho Revenue, Series A | 5.00% due 04/01/2019 | 200,000 | 216,898 | 1.4% |
| University of Idaho Revenue, Series A | 5.00% due 04/01/2020 | 260,000 | 279,664 | 1.8% |
| 1,690,000 | 1,786,449 | 11.6% | ||
| Transportation | ||||
| Idaho Housing & Finance Association | 4.60% due 07/15/2023 | 250,000 | 266,472 | 1.7% |
| Idaho Housing & Finance Association | 5.00% due 07/15/2024 | 200,000 | 213,564 | 1.4% |
| Idaho Housing & Finance Association1 | 5.00% due 07/15/2027 | 50,000 | 53,188 | 0.3% |
| 500,000 | 533,224 | 3.4% | ||
| Urban Renewal | ||||
| Boise City Urban Renewal Agency Lease Revenue | 5.00% due 08/15/2020 | 160,000 | 179,981 | 1.2% |
| Boise City Urban Renewal Agency Lease Revenue1 | 5.00% due 08/15/2021 | 90,000 | 100,285 | 0.6% |
| Jerome Urban Renewal District Revenue, Series A | 5.40% due 09/01/2013 | 200,000 | 203,322 | 1.3% |
| 450,000 | 483,588 | 3.1% | ||
| Water Supply | ||||
| Blackfoot, Idaho COP | 5.80% due 09/01/2018 | 135,000 | 135,335 | 0.9% |
| Idaho Bond Bank Authority Revenue | 4.00% due 09/15/2024 | 100,000 | 104,799 | 0.7% |
| Idaho Bond Bank Authority Revenue | 5.00% due 09/15/2026 | 250,000 | 268,570 | 1.7% |
| Pocatello ID Water Revenue | 4.50% due 02/01/2024 | 100,000 | 104,289 | 0.7% |
| Pocatello ID Water Revenue | 4.75% due 02/01/2026 | 350,000 | 368,119 | 2.4% |
| 935,000 | 981,112 | 6.4% | ||
| Total investments | (cost = $13,839,654) | $13,585,000 | 14,521,735 | 93.9% |
| Other assets (net of liabilities) | 947,628 | 6.1% | ||
| Total net assets | $15,469,363 | 100.0% | ||
| (1) Fair valued | ||||
Security valuation:
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 latest bid price.
Fixed-income debt instruments, such as commercial paper, bankers' acceptances and U.S. 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-U.S. securities.
In the case 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 trade date. Realized gains and losses on sales of securities are recorded on the identified cost basis.
Foreign currency:
Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.
Fair Value Measurements Disclosure:
The Funds have adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed 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 market place, 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 August 31, 2011 in valuing the Funds' investments carried at value:
| Funds | Total | Level 1 Quoted Price | Level 2 Significant Observable Input | Level 3 Significant Unobservable Input |
| Short-Term Bond | ||||
| Certificate of Deposit | $236,827 | $- | $236,827 | $- |
| Corporate Bonds | $3,560,970 | $- | $3,560,970 | $- |
| Foreign Government Bonds | $481,904 | $- | $481,904 | $- |
| Municipal Bonds | $840,270 | $- | $740,809 | $99,461 |
| U.S. Government Bonds | $360,309 | $- | $360,309 | $- |
| Total Assets | $5,480,280 | $- | $5,380,819 | $99,461 |
| Bond Income | ||||
| Corporate Bonds | $2,683,379 | $- | $2,683,379 | $- |
| Foreign Government Bonds | $243,425 | $- | $243,425 | $- |
| Municipal Bonds | $2,254,734 | $- | $2,254,734 | $- |
| Total Assets | $5,181,538 | $- | $5,181,538 | $- |
| Core Fund | ||||
| Common Stocks | $3,093,081 | $3,093,081 | $- | |
| Corporate Bonds | $1,328,475 | $1,328,475 | $- | |
| Municipal Bonds | $205,700 | $205,700 | $- | |
| Total Assets | $4,627,256 | $3,093,081 | $1,534,175 | $- |
| Growth Fund | ||||
| Common Stocks | $20,567,703 | $20,567,703 | $- | $- |
| Total Assets | $20,567,703 | $20,567,703 | $- | $- |
| International Fund | ||||
| Common Stocks | $120,500,888 | $119,375,350 | $1,125,5381 | $- |
| Total Assets | $120,500,888 | $119,375,350 | $1,125,538 | $- |
| Idaho Tax Exempt Fund | ||||
| Municipal Bonds | $15,469,363 | $- | $14,867,713 | $601,650 |
| Total Assets | $15,469,363 | $- | $14,867,713 | $601,650 |
(1) During the period ended August 31, 2011, $ 1,125,538 of Millicom was transferred from Level 1 to Level 2 because of a corporate action.
| Short Term Bond Fund | ||
| Level 3 Roll-Forward Municipal Securities | ||
| Beginning balance | $ 97,756 | |
| Total unrealized gains or losses | $ 1,705 | |
| Purchases | $ - | |
| Maturity | $ - | |
| Transfers in and/or out of level 3 | $ - | |
| Ending Balance | $ 99,461 | |
| Idaho Tax Exempt Fund | ||
| Level 3 Roll-Forward Municipal Securities | ||
| Beginning balance | $ 679,252 | |
| Total unrealized gains or losses | $ (42,602) | |
| Purchases | $ - | |
| Called | $ (35,000) | |
| Transfers in and/or out of level 3 | $ - | |
| Ending Balance | $ 601,650 | |
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 a Fund's holdings may consist of less than a Round Lot and are considered "Odd Lots." Odd Lot municipal bonds trade at a discount to Round Lots municipal bonds 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 municipal bonds 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 |
New accounting pronouncement:
In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about Fair Value Measurements." ASU No. 2010-06 amends FASB Acounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, to improve disclosure about fair value measurements, which requires additional disclosures regarding fair value measurements about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). Effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years, entities will need to disclose information about purchases, sales issuances and settlements of Level 3 securities on a gross basis rather than a net basis as currently required. Management is currently evaluating the impact ASU No. 2010-06 will have on the Funds' financial statement disclosures.
In May 2011, FASB issued ASU No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements" in GAAP and the International Financial Reporting Standards ("IFRSs"). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011- 04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact these amendments may have on the Funds' financial statements.
Item 2. Controls and Procedures
(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On October 19, 2011, Mr. Nicholas Kaiser (President) and Mr. Christopher Fankhauser (Treasurer), reviewed the internal control procedures for Saturna Investment Trust and found them reasonable and adequate.
(b) The registrant's principal executive officer and principal financial officer are aware of no change in the registrant's internal control over financial reporting that occurred during the registrant's most recent 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/ Nicholas Kaiser
Nicholas Kaiser, President
Date: October 25, 2011
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 25, 2011
By:
/s/ Christopher Fankhauser
Christopher Fankhauser, Treasurer
Date: October 25, 2011
