SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05071 or 33-13247
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, 2005
Date of reporting period: May31, 2005
May 31, 2005 Semi-Annual Report | 1 |
Item 1. Reports to Stockholders.
Sextant SHORT-TERM BOND | (graphic omitted) |
Fellow Shareowners:
For the six months ended May 31, 2005, stocks advanced and bonds declined, both modestly. Bond investors can look for higher yields but little total return as interest rates climb slowly. Stock investors should see a good second half in 2005, helped by confident consumers, growing employment, an reduced government deficits. But the rising US currency will reduce corporate earnings growth to the high single digits.
For the last six months, bot the Sextant Growth and Sextant International funds have continued their outstanding performances. The Sextant bond funds provided haven while interest rates increased. Now able to purchase greater yields, we expect to be increasing maturities and quality in these bond funds. Equities should continue to provide the better returns, as their fundamental valuations remain solid. As we have done (accurately) for the past year, we are recommending a balance favoring stocks over bonds.
Prudent investors do well to remember that change is the only real constant. Choppy economic seas will always be soothed by the "invisible hand" of free economic markets. Change is the rationale for our four distinctly different Sextant funds, which allow investors to choose the variable returns of the domestic and international stock markets, long-term bonds, or the safety of short-term bonds.
Our Sextant funds employ a "fulcrum" advisory fee structure that reward or penalizes Saturna Capital for investment results. Relative performance of the Sextant equity funds over the last 12 months (the fulcurm fee measurement period) was far above our Morningstar mutual fund benchmarks-to the considerable benefit of shareowners as well as Saturna Capital. For the six and twleve months ended May 31, 2005 comparative total returns are:
Sextant Fund | 6 Month Total Return | 12 Month Total Return | vs. Morningstar | 12 Month Total Return |
Short-Term Bond | 0.76% | 1.89% | Short-Term Bonds | 2.41% |
Bond Income | 2.57% | 7.01% | Long-Term Bonds | 9.47% |
Growth | 3.88% | 17.68% | Domestic Growth | 7.91% |
International | 6.92% | 24.58% | Foreign Stock | 14.92% |
While are funds remain small, growing awareness of the Sextant Funds and their good performance continues to attract investors. The year 2005 has been solid so far and we are looking forward to the second half. Thank you for investing your money with ours.
Nicholas Kaiser, President | Phelps McIlvaine, Vice President |
(Manager, Sextant Growth; Sextant International) | (Manager, Sextant Bond Income; Sextant Short-Term Bond) |
July 15, 2005
2 | May 31, 2005 Semi-Annual Report |
Investments | Sextant Short Term Bond Fund (Graphic Omited) |
Rating* | Issuer | Coupon/Maturity | Face Amount | Market Value | Percentage |
As of May 31, 2005 | |||||
Banking | |||||
AA+ | Washington Mutual Financial | 8.25% due 6/15/2005 | $75,000 | $74,815 | 3.0% |
Building Products | |||||
A | Lowe's Companies | 7.50% due 12/15/2005 | 70,000 | 70,964 | 2.8% |
Computer | |||||
A- | Hewlett Packard | 7.15% due 6/15/2005 | 70,000 | 69,795 | 2.8% |
Cosmetics & Toiletries | |||||
A | Avon Products | 6.55% due 8/1/2007 | 95,000 | 98,864 | 3.9% |
Finance & Insurance | |||||
A | Allliance Capital Management | 5.625% due 8/15/2006 | 65,000 | 65,933 | 2.6% |
AAA | Federal Home Loan Bank | 4.60% due 5/18/2009 | 120,000 | 120,487 | 4.8% |
AAA | Federal Home Loan Mortgage | 3.00% due 8/18/2005 | 100,000 | 99,934 | 3.9% |
AAA | Federnal National Mortgage | 4.00% due 2/23/2007 | 120,000 | 119,941 | 4.7% |
A+ | International Finance AIG | 5.75% due 10/15/2006 | 95,000 | 96,133 | 3.8% |
SUB-TOTAL | 500,000 | 502,428 | 19.8% | ||
Machinery | |||||
A- | Rockwell Automation Int'l | 6.15% due 1/15/2008 | 95,000 | 98,559 | 3.9% |
Medical Drugs | |||||
A | Amgen | 6.50% due 12/1/2007 | 90,000 | 94,150 | 3.7% |
AAA | Pfizer Inc. | 5.625% due 2/1/2006 | 100,000 | 102,644 | 4.1% |
SUB-TOTAL | 190,000 | 196,794 | 7.8% | ||
Publishing | |||||
A- | Tribune Company | 6.875% due 11/1/2006 | 45,000 | 46,376 | 1.8% |
Telecommunications | |||||
A | Southwestern Bell Telephone | 6.625% due 7/15/2007 | 95,000 | 99,933 | 3.9% |
A- | Verizon Wireless | 5.375% due 12/15/2006 | 82,000 | 82,939 | 3.3% |
SUB-TOTAL | 177,000 | 182,872 | 7.2% | ||
U.S. Government | |||||
AAA | U.S. T-Note | 3.25% due 8/15/2008 | 225,000 | 222,258 | 8.8% |
AAA | U.S. T-Note | 4.00% due 6/15/2009 | 425,000 | 429,582 | 17.0% |
SUB-TOTAL | 650,000 | 651,840 | 25.8% | ||
Utilities | |||||
A | Florida Power & Light | 6.875% due 12/1/2005 | 95,000 | 96,068 | 3.8% |
BBB | PSI Energy | 7.85% due 10/15/2007 | 90,000 | 94,321 | 3.7% |
BBB+ | Sempra Energy | 6.95% due 12/1/2005 | 92,000 | 93,624 | 3.7% |
SUB-TOTAL | 277,000 | 284,013 | 11.2% | ||
Total Investments | (Cost = $2,287,548) | $2,244,000 | $2,277,320 | 90.0% | |
Other Assets (net of liabilities) | 252,084 | 10.0% | |||
Total Net Assets | $2,529,404 | 100.0% | |||
*Ratings are the lesser of S&P or Moody's (unaudited) |
May 31, 2005 Semi-Annual Report | 3 |
FINANCIAL HIGHLIGHTS | SEXTANT SHORT TERM BOND FUND (Graphic Omitted) |
Selected data per share of capital stock outstanding throughout the period: | Period ended May 31, 2005 | For the year ended November 30, | |||||
2004 | 2003 | 2002 | 2001 | 2000 | |||
Net asset value at beginning of period | $4.97 | $5.09 | $5.07 | $5.10 | $4.95 | $4.92 | |
Income from investment operations | |||||||
Net investment income | 0.09 | 0.19 | 0.23 | 0.27 | 0.26 | 0.27 | |
Net gains or losses on securities (both realized and unrealized) | (0.05) | (0.12) | 0.02 | (0.02) | 0.14 | 0.03 | |
Total from investment operations | 0.04 | 0.07 | 0.25 | 0.25 | 0.40 | 0.30 | |
Less distributions | |||||||
Dividends (from net investment income) | (0.09) | (0.19) | (0.23) | (0.28) | (0.25) | (0.27) | |
Total distributions | (0.09) | (0.19) | (0.23) | (0.28) | (0.25) | (0.27) | |
Net asset value at end of period | $4.92 | $4.97 | $5.09 | $5.07 | $5.10 | $4.95 | |
Total Return | 0.76% | 1.41% | 5.00% | 4.90% | 8.37% | 6.20% | |
Ratios / Supplemental Data | |||||||
Net assets ($000), end of period | $2,529 | $2,255 | $2,259 | $2,177 | $2,189 | $2,555 | |
Ratio of expenses to average net assets | |||||||
Before fee waivers | 0.54% | 1.14% | 1.17% | 1.14% | 0.94% | 1.02% | |
After fee waivers | 0.30% | 0.58% | 0.60% | 0.93% | 0.51% | 0.61% | |
Ratio of net investment income after waivers to average net assets | 1.76% | 3.80% | 4.47% | 5.23% | 5.45% | 5.45% | |
Portfolio turnover rate | 23% | 37% | 22% | 28% | 28% | 12% |
STATEMENT OF ASSETS AND LIABILITIES | SEXTANT SHORT TERM BOND FUND (Graphic Omitted) |
As of May 31, 2005
Assets | |||
Investments (cost $2,287,548) | $2,277,320 | ||
Cash | 206,926 | ||
Interest receivable | 42,755 | ||
Total Assets | $2,527,001 | ||
Liabilities | |||
Other Liabilities | (2,403) | ||
Total Liabilities | (2,403) | ||
Net Assets | $2,529,404 | ||
Fund shares outstanding | 514,206 | ||
Analysis of Net Assets | |||
Paid in Capital (unlimited shares authorized, without par value) | $2,580,117 | ||
Accumlated net realized loss on investments | (40,485) | ||
Unrealized net depreciation on investments | (10,228) | ||
Net Assets applicable to Fund shares outstanding | $2,529,404 | ||
Net Asset Value, Offering and Redemption price per share | $4.92 |
(The accompanying notes are an integral part of these financial statements)
4 | May 31,2005 Semi-Annual Report |
STATEMENT OF OPERATIONS | SEXTANT SHORT TERM BOND FUND (Graphic Omitted) |
For the period ended May 31, 2005 | |||
Investment income | |||
Interest income | $62,727 | ||
Amortization of bond premium | (14,953) | ||
Accretion | 685 | ||
Other income | 125 | ||
Gross investment income | $48,584 | ||
Expenses | |||
Investment adviser and administration fees | 6,968 | ||
Filing and registration fees | 1,574 | ||
Custodian fees | 1,470 | ||
Legal fees | 1,025 | ||
Meetings | 743 | ||
Insurance | 500 | ||
Audit fees | 305 | ||
Printing and postage | 85 | ||
Total gross expenses | 12,670 | ||
Less adviser fees waived | (4,341) | ||
Less custodian fees waived | (1,245) | ||
Net expenses | 7,084 | ||
Net investment income | $41,500 | ||
Net realized loss on investments | |||
Proceeds from sales | 493,096 | ||
Less cost of securities sold (based on identified cost) | 499,636 | ||
Realized net loss | (6,540) | ||
Unrealized gain on investments | |||
End of period | (10,228) | ||
Beginning of period | 5,349 | ||
Decrease in unrealized gain for the period | (15,577) | ||
Net realized and unrealized loss | (22,117) | ||
Net increase in net assets resulting from operations | $19,383 | ||
STATEMENT OF CHANGES IN NET ASSETS | SEXTANT SHORT TERM BOND FUND (Graphic Omitted) |
Period ended | Year ended | |
May 31, 2005 | Nov. 30, 2004 | |
INCREASE (DECREASE) IN NET ASSETS | ||
From Operations | ||
Net investment income | $41,500 | $90,916 |
Net realized loss on investments | (6,540) | (4,422) |
Net decrease in unrealized appreciation | (15,577) | (57,383) |
Net increase in net assets from operations | $19,383 | $29,111 |
Dividends to shareowners from | ||
Net investment income | (41,506) | (90,916) |
Fund Share transactions | ||
Proceeds from sales of shares | 417,644 | 610,686 |
Value of shares issued in reinvestment of dividends | 41,141 | 90,739 |
458,785 | 701,425 | |
Cost of shares redeemed | (162,665) | (643,510) |
Net increase in net assets | 296,120 | 57,915 |
Total increase (decrease) in net assets | $273,997 | $(3,890) |
NET ASSETS | ||
Beginning of period | 2,255,407 | 2,259,297 |
End of period | $2,529,404 | $2,255,407 |
Shares of the fund sold and redeemed | ||
Number of shares sold | 84,721 | 119,937 |
Number of shares issued in reinvestment of dividends | 8,346 | 18,013 |
93,067 | 137,950 | |
Number of shares redeemed | (32,965) | (127,472) |
Net increase in number of shares outstanding | 60,102 | 10,478 |
(The accompanying notes are an integral part of these financial statements)
May 31, 2005 Semi-Annual Report | 5 |
Expenses (Unaudited) | Sextant Short Term Bond Fund (grahic omitted) |
As a Sextant Short-Term Bond Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.
EXAMPLE
The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].
ACTUAL EXPENSES
The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
SEXTANT SHORT-TERM BOND FUND
Beginning Account Value [Friday, May 28, 2004] | Ending Account Value [Tuesday, May 31, 2005] | Expenses Paid During Period* | |
Actual (1.89% return after expenses) | $1,000.00 | $1,018.90 | $6.06 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,044.00 | $6.13 |
* Expenses are equal to Sextant Short-Term Bond Fund's annualized expense ratio of 0.60% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,009.45 over the period.
Portfolio Holdings | SEXTANT SHORT TERM BOND FUND (Graphic Omitted) |
Ratings established | By Advisor | By Standard & Poor's | By Moody's Investor Services |
AAA | 43.3% | 39.3% | 43.3% |
AA | 3.0% | 6.8% | 6.8% |
A | 36.4% | 32.6% | 32.6% |
BBB | 7.4% | 7.4% | 7.4% |
unrated | -- | 4.0% | 0.0% |
cash | 9.9% | 9.9% | 9.9% |
6 | May 31, 2005 Semi-Annual Report |
INVESTMENTS | SEXTANT BOND INCOME FUND (Graphic Omitted) |
As of May 31, 2005 | |||||
Rating* | Issuer | Coupon/Maturity | Face Amount | Market Value | Percentage |
Automotive | |||||
BBB | Auto Zone | 5.50% due 11/15/2015 | $95,000 | $94,174 | 3.0% |
Banking | |||||
A+ | Chase Manhattan | 7.125% due 6/15/2009 | 50,000 | 54,649 | 1.8% |
A+ | Citicorp | 7.25% due 10/15/2011 | 50,000 | 57,032 | 1.8% |
A- | Comerica Bank | 7.125% due 12/1/2013 | 50,000 | 54,473 | 1.7% |
A+ | Norwest Financial | 6.85% due 7/15/2009 | 50,000 | 54,863 | 1.8% |
SUB-TOTAL | 200,000 | 221,017 | 7.1% | ||
Building Products | |||||
BBB+ | Masco Corporation | 7.125% due 8/15/2013 | 60,000 | 68,440 | 2.2% |
Chemicals | |||||
A | Air Products & Chemicals | 8.75% due 4/15/2021 | 50,000 | 65,894 | 2.1% |
Diversified Financial Services | |||||
AAA | General Electric Capital | 8.125% due 5/15/2012 | 60,000 | 71,743 | 2.3% |
Electric Utilities | |||||
A- | Commonwealth Edison | 7.50% due 7/1/2013 | 50,000 | 58,818 | 1.9% |
Electronics | |||||
A- | Koninlijke Phillips Electronics | 7.25% due 8/15/2013 | 50,000 | 55,601 | 1.8% |
A- | Sempra Energy | 7.95% due 3/1/2010 | 50,000 | 56,485 | 1.8% |
SUB-TOTAL | 100,000 | 112,086 | 3.6% | ||
Food | |||||
BBB+ | Conagra | 7.875% due 9/15/2010 | 50,000 | 57,701 | 1.9% |
A+ | Hershy Foods | 6.95% due 8/15/2012 | 50,000 | 57,425 | 1.8% |
A- | HJ Heinz | 6.00 % due 3/15/2012 | 75,000 | 80,897 | 2.6% |
SUB-TOTAL | 175,000 | 196,023 | 6.3% | ||
Insurance | |||||
A+ | Allstate | 7.50% due 6/15/2013 | 50,000 | 58,744 | 1.9% |
A+ | Progressive | 7.00% due 10/1/2013 | 75,000 | 86,494 | 2.7% |
A+ | XL Capital | 6.50% due 1/15/2012 | 90,000 | 99,440 | 3.2% |
SUB-TOTAL | 215,000 | 244,678 | 7.8% | ||
Investment Finance | |||||
A | Bear Stearns | 3.5% due 6/27/2008 | 154,000 | 147,361 | 4.7% |
AA- | Morgan Stanley Dean Witter | 6.75% due 10/15/2013 | 50,000 | 55,794 | 1.8% |
AA+ | Paine Webber Group | 7.625% due 2/15/2014 | 50,000 | 59,655 | 1.9% |
SUB-TOTAL | 254,000 | 262,810 | 8.4% | ||
Machinery | |||||
A+ | Caterpillar | 9.375% due 8/15/2011 | 40,000 | 49,265 | 1.6% |
A+ | Dover | 6.25% due 6/1/2008 | 70,000 | 73,269 | 2.3% |
SUB-TOTAL | 110,000 | 122,534 | 3.9% | ||
Medical Supplies | |||||
A+ | Becton Dickinson | 7.15% due 10/1/2009 | 40,000 | 44,128 | 1.4% |
Oil & Gas | |||||
A | Baker Hughes | 6.00% due 2/15/2009 | 70,000 | 73,185 | 2.4% |
A+ | Texaco Capital | 8.625% due 6/30/2010 | 40,000 | 47,766 | 1.5% |
SUB-TOTAL | 110,000 | 120,951 | 3.9% | ||
Real Estate | |||||
BBB+ | Archstone Smith | 5.625% due 8/15/2014 | 50,000 | 52,674 | 1.7% |
Retailing | |||||
A | Dayton Hudson (Target Stores) | 10.00% due 1/1/2011 | 50,000 | 60,654 | 1.9% |
A | Lowe's Companies | 8.25% due 6/1/2010 | 50,000 | 58,729 | 1.9% |
A | May Department Stores | 8.00% due 7/15/2012 | 50,000 | 58,010 | 1.9% |
AA | Wal-Mart Stores | 7.25% due 6/1/2013 | 45,000 | 53,050 | 1.7% |
SUB-TOTAL | 195,000 | 230,443 | 7.4% | ||
Telecommunications | |||||
A+ | GTE | 6.90% due 11/1/2008 | 50,000 | 53,634 | 1.7% |
Transportation | |||||
A | Southwest Airlines | 6.50% due 3/1/2012 | 75,000 | 80,700 | 2.6% |
A- | US Freightways | 8.50% due 4/25/2010 | 50,000 | 57,132 | 1.8% |
SUB-TOTAL | 125,000 | 137,832 | 4.4% | ||
US Government | |||||
AAA | Federal Farm Credit Bank | 5.09% due 2/17/2015 | 120,000 | 119,646 | 3.8% |
AAA | Federal Home Loan Bank | 5.55% due 4/13/2015 | 100,000 | 101,382 | 3.2% |
AAA | Federal Home Loan Mortgage Corp | 5.00% due 8/1/2009 | 100,000 | 100,342 | 3.2% |
AAA | Federal National Mortgage | 5.00% due 4/10/2015 | 100,000 | 99,829 | 3.2% |
AAA | US Treasury Note | 5.50% due 2/15/2008 | 125,000 | 131,035 | 4.2% |
AAA | US Treasury Note | 4.00% due 4/15/2010 | 250,000 | 252,617 | 8.1% |
SUB-TOTAL | 795,000 | 804,851 | 25.7% | ||
Total Investments | (Cost = $2,789,044) | $2,734,000 | $2,962,730 | 94.8% | |
Other Assets (net of liabilities) | 163,801 | 5.2% | |||
Total Net Assets | $3,126,531 | 100.0% | |||
*Ratings are the lesser of S&P or Moody's (unaudited) | |||||
May 31, 2005 Semi-Annual Report | 7 |
FINANCIAL HIGHLIGHTS | SEXTANT BOND INCOME FUND (graphic omitted) |
Selected data per share of capital stock outstanding throughout the period: | For Year Ended November 30, | |||||
Period ended May 31,2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |
Net asset value at beginning of period | $5.06 | $5.07 | $4.97 | $4.81 | $4.56 | $4.59 |
Income from investment operations | ||||||
Net investment income | 0.11 | 0.22 | 0.22 | 0.26 | 0.30 | 0.29 |
Net gains or losses on securities (both realized and unrealized) | 0.02 | (0.01) | 0.10 | 0.16 | 0.25 | (0.03) |
Total from investment operations | 0.13 | 0.21 | 0.32 | 0.42 | 0.55 | 0.26 |
Less distributions | ||||||
Dividends (from net investment income) | (0.11) | (0.22) | (0.22) | (0.26) | (0.30) | (0.29) |
Total distributions | (0.11) | (0.22) | (0.22) | (0.26) | (0.30) | (0.29) |
Net asset value at end of period | $5.08 | $5.06 | $5.07 | $4.97 | $4.81 | $4.56 |
Total return | 2.57% | 4.26% | 6.52% | 9.02% | 12.40% | 6.05% |
Ratios/supplemental data | ||||||
Net assets ($000), end of period | $3,127 | $2,643 | $2,272 | $2,105 | $1,965 | $1,505 |
Ratio of expenses to average net assets | ||||||
Before fee waiver | 0.49% | 0.89% | 1.15% | 1.06% | 1.06% | 0.99% |
After fee waiver | 0.47% | 0.87% | 0.97% | 0.72% | 0.34% | 0.35% |
Ratio of net investment income after waiver to average net assets | 2.19% | 4.47% | 4.29% | 5.40% | 6.71% | 6.58% |
Portfolio turnover rate | 4% | 0% | 0% | 29% | 30% | 0% |
STATEMENT OF ASSETS & LIABILITIES | Sextant Bond Income Fund (graphic omitted) |
As of May 31, 2005 | |||
Assets | |||
Bond investments (cost $2,789,044) | $2,962,730 | ||
Cash | 115,229 | ||
Interest receivable | 46,941 | ||
Insurance reserve premium | 401 | ||
Total Assets | $3,125,301 | ||
Liabilities | |||
Other Liabilities | (1,230) | ||
Total Liabilities | (1,230) | ||
Net Assets | $3,126,531 | ||
Fund shares outstanding | 615,873 | ||
Analysis of Net Assets | |||
Paid in capital (unlimited shares authorized, without par value) | 2,985,860 | ||
Accumlated net realized loss on investments | (33,015) | ||
Unrealized net appreciation on investments | 173,686 | ||
Net Assets applicable to Fund shares outstanding | $3,126,531 | ||
Net Asset Value, Offering and Redemption price per share | $5.08 |
(The accompanying notes are an integral part of these financial statements)
8 | May 31, 2005 Semi-Annual Report |
STATEMENT OF OPERATIONS | SEXTANT BOND INCOME FUND (graphic omitted) |
For the semi-annual period ended May 31, 2005 | |||
Investment income | |||
Interest income | $77,528 | ||
Amortization of bond premium | (5,701) | ||
Accretion | 376 | ||
Other income | 43 | ||
Gross investment income | $72,246 | ||
Expenses | |||
Investment advisory and administration fee | 6,005 | ||
Filing and registration fees | 1,799 | ||
Legal fees | 1,686 | ||
Audit fees | 1,540 | ||
Insurance | 741 | ||
Custodian fees | 666 | ||
Printing and postage | 395 | ||
Trustee fees | 290 | ||
Other expenses | 102 | ||
Total gross expenses | 13,224 | ||
Less: custodian fees waived | (445) | ||
Net expenses | 12,779 | ||
Net investment income | $59,467 | ||
Net realized gain on investments | |||
Proceeds from sales | 106,937 | ||
Less cost of securities sold (based on identified cost) | 106,111 | ||
Realized net gain | 826 | ||
Unrealized gain on investments | |||
End of period | 173,686 | ||
Beginning of period | 160,528 | ||
Increase in unrealized gain for the period | (13,158) | ||
Net realized and unrealized gain | (13,984) | ||
Net increase in net assets resulting from operations | $73,451 |
STATEMENT OF CHANGES IN NET ASSETS | SEXTANT BOND INCOME FUND (graphic omitted) |
Period ended | Year ended | |
May 31, 2005 | Nov. 30, 2004 | |
INCREASE IN NET ASSETS | ||
From Operations | ||
Net investment income | $59,467 | $111,643 |
Net realized gain on investments | 826 | - |
Net increase (decrease) in unealized appreciation | 13,158 | (8,589) |
Net increase in net assets | $73,451 | $103,054 |
Dividends to shareowners from | ||
Net investment income | (59,518) | (111,643) |
From tund share transactions | ||
Proceeds from sales of shares | 680,088 | 418,675 |
Value of shares issued in reinvestment of dividends | 58,584 | 106,570 |
738,672 | 525,245 | |
Cost of shares redeemed | (268,674) | (146,179) |
Net increase in net assets | 469,998 | 379,066 |
Total increase in net assets | $483,931 | $370,477 |
NET ASSETS | ||
Beginning of period | 2,642,600 | 2,272,123 |
End of period | $3,126,531 | $2,642,600 |
Shares of the fund sold and redeemed | ||
Number of shares sold | 134,405 | 82,699 |
Number of shares issued in reinvestment of dividends | 11,594 | 20,985 |
145,999 | 103,684 | |
Number of shares redeemed | (52,802) | (29,190) |
Net increase in number of shares outstanding | 93,197 | 74,494 |
(The accompanying notes are an integral part of these financial statements)
May 31, 2005 Semi-Annual Report | 9 |
Expenses (Unaudited) |
|
As a Sextant Bond Income Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.
EXAMPLE
The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday,May 31, 2005].
ACTUAL EXPENSES
The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
SEXTANT BOND INCOME FUND
Beginning Account Value [Friday, May 28, 2004] | Ending Account Value [Tuesday, May 31, 2005] | Expenses Paid During Period* | |
Actual (7.01% return after expenses) | $1,000.00 | $1,070.10 | $9.73 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,040.60 | $9.59 |
* Expenses are equal to Sextant Bond Income Fund's annualized expense ratio of 0.94% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,035.05 over the period.
Portfolio Holdings | SEXTANT BOND INCOME FUND (graphic omitted) |
Ratings established | By Advisor | By Standar & Poor's | By Moody's Investor Services |
AAA | 28.1% | 16.7% | 28.0% |
AA | 8.7% | 6.9% | 10.5% |
A | 39.4% | 43.9% | 39.5% |
BBB | 18.6% | 16.0% | 16.8% |
unrated | -- | 11.3% | 0.0% |
cash | 5.2% | 5.2% | 5.2% |
10 | May 31, 2005 Semi-Annual Report |
INVESTMENTS | SEXTANT GROWTH FUND (graphic omitted) |
As of May 31, 2005 | ||||
Issue | Number of Shares | Cost | Market Value | Percentage |
Banking | ||||
Frontier Financial | 6,000 | $90,207 | $149,400 | 2.1% |
Washington Banking Company | 2,000 | 29,080 | 28,600 | 0.4% |
Washington Mutual | 6,750 | 44,124 | 278,775 | 3.9% |
SUB-TOTAL | 163,411 | 456,775 | 6.4% | |
Computers | ||||
3 Com* | 16,000 | 96,576 | 58,560 | 0.8% |
Adobe Systems | 9,600 | 50,490 | 317,952 | 4.4% |
Apple Computer* | 11,000 | 97,170 | 437,352 | 6.1% |
Earthlink* | 12,000 | 101,107 | 126,960 | 1.8% |
Hewlett-Packard | 5,500 | 113,000 | 123,805 | 1.7% |
Intuit* | 4,000 | 175,198 | 173,080 | 2.4% |
Oracle* | 8,000 | 28,059 | 102,400 | 1.4% |
Phoenix Technologies Ltd.* | 3,062 | 29,148 | 24,832 | 0.3% |
SUB-TOTAL | 690,748 | 1,364,941 | 18.9% | |
Construction | ||||
Lowe's Companies | 4,000 | 135,141 | 228,840 | 3.2% |
Weyerhaeuser | 3,000 | 158,837 | 192,450 | 2.7% |
SUB-TOTAL | 293,978 | 421,290 | 5.9% | |
Electronics | ||||
Advanced Micro Devices* | 10,000 | 41,708 | 164,000 | 2.3% |
Agilent Technologies* | 6,000 | 155,834 | 144,060 | 2.0% |
Harman International Industries | 1,500 | 114,354 | 124,290 | 1.7% |
SUB-TOTAL | 311,896 | 432,350 | 6.0% | |
Food | ||||
Performance Food Group* | 3,000 | 96,917 | 81,180 | 1.1% |
PepsiCo | 2,000 | 102,111 | 112,600 | 1.6% |
SUB-TOTAL | 199,028 | 193,780 | 2.7% | |
Hotels & Motels | ||||
Westcoast Hospitality* | 12,000 | 75,904 | 82,680 | 1.1% |
Investments | ||||
Chubb | 1,200 | 99,900 | 100,920 | 1.4% |
Schwab (Charles) | 20,415 | 9,117 | 231,506 | 3.2% |
SUB-TOTAL | 109,017 | 332,426 | 4.6% | |
Machinery | ||||
Regal-Beloit | 4,000 | 104,006 | 102,800 | 1.4% |
Medical | ||||
Affymetrix* | 4,000 | 109,131 | 213,960 | 3.0% |
Amgen* | 2,640 | 34,598 | 165,211 | 2.3% |
Barr Laboratories* | 4,500 | 159,489 | 228,285 | 3.2% |
Bristol-Myers Squibb | 4,500 | 121,892 | 114,120 | 1.6% |
Caremark Rx* | 4,000 | 92,593 | 178,641 | 2.5% |
Ligand Pharmaceuticals* | 5,000 | 56,430 | 29,200 | 0.4% |
Lilly (Eli) | 2,000 | 165,241 | 116,600 | 1.6% |
Pharmaceutical Product Development* | 7,500 | 67,174 | 362,325 | 5.0% |
SUB-TOTAL | 806,548 | 1,408,342 | 19.6% | |
Metal Ores | ||||
Alcoa | 3,000 | 104,233 | 81,300 | 1.1% |
Phelps Dodge | 1,330 | 76,218 | 116,242 | 1.6% |
SUB-TOTAL | 180,451 | 197,542 | 2.7% | |
Oil &Gas | ||||
Noble Drilling | 3,000 | 54,457 | 169,860 | 2.3% |
Publishing | ||||
Wiley (John) & Sons, Class A | 3,400 | 74,233 | 130,152 | 1.8% |
Retail | ||||
Bed Bath & Beyond* | 3,000 | 100,051 | 121,950 | 1.7% |
Build-A-Bear-Workshop* | 4,000 | 111,000 | 109,600 | 1.5% |
SUB-TOTAL | 211,051 | 231,550 | 3.2% | |
Telecommunications | ||||
Sprint (FON Group) | 1,300 | 24,114 | 30,758 | 0.4% |
Trimble Navigation* | 4,500 | 106,214 | 178,830 | 2.5% |
SUB-TOTAL | 130,328 | 209,588 | 2.9% | |
Utility | ||||
FPL Group | 5,000 | 158,289 | 203,250 | 2.8% |
IDACorp | 6,000 | 159,539 | 170,100 | 2.4% |
Sempra Energy | 3,000 | 116,394 | 119,010 | 1.6% |
SUB-TOTAL | 434,222 | 492,360 | 6.8% | |
Total Investments | $3,839,278 | $6,226,436 | 86.3% | |
Other Assets (net of liabilities) | 989,247 | 13.7% | ||
Total Net Assets | $7,215,683 | 100.0% | ||
*Non-income producing | ||||
May 31, 2005 Semi-Annual Report | 11 |
FINANCIAL HIGHLIGHTS | SEXTANT GROWTH FUND (graphic omitted) |
Selected data per share of capital stock outstanding throughout the period: | For Year Ended November 30, |
Period ended May 31, 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |
Net asset value at beginning of period | $14.20 | $12.91 | $10.64 | $11.90 | $13.16 | $12.68 |
Income from investment operations | ||||||
Net investment income | (0.03) | 0.01 | (0.04) | (0.05) | (0.02) | (0.07) |
Net gains or losses on securities (both realized and unrealized) | 0.57 | 1.45 | 2.31 | (1.21) | (1.24) | 1.36 |
Total from investment operations | 0.54 | 1.46 | 2.27 | (1.26) | (1.26) | 1.29 |
Less distributions | ||||||
Dividends (from net investment income) | - | (0.01) | - | - | - | - |
Distributions (from capital gains) | - | (0.16) | - | - | - | (0.81) |
Total distributions | - | (0.17) | - | - | - | (0.81) |
Net asset value at end of period | $14.74 | $14.20 | $12.91 | $10.64 | $11.90 | $13.16 |
Total Return | 3.88% | 11.35% | 21.31% | (10.51)% | (9.57)% | 10.16% |
Ratios / Supplemental Data | ||||||
Net assets ($000), end of period | $7,216 | $5,331 | $4,732 | $3,373 | $3,792 | $3,862 |
Ratio of expenses to average net assets | ||||||
Before fee waiver | 0.62% | 0.80% | 1.20% | 1.17% | 0.84% | 1.11% |
After fee waiver | 0.60% | 0.78% | 1.14% | 1.11% | 0.78% | 1.05% |
Ratio of net investment income after waiver to average net assets | (0.20)% | 0.12% | (0.40)% | (0.48)% | (0.18)% | (0.51)% |
Portfolio turnover rate | 2% | 8% | 12% | 15% | 8% | 20% |
STATEMENT OF ASSETS & LIABILITIES | SEXTANT GROWTH FUND (graphic omitted) |
As of May 31, 2005 | |||
Assets | |||
Investments (cost $3,839,278) | $6,226,436 | ||
Cash | 992,190 | ||
Insurance reserve premium | 1,214 | ||
Dividends receivable | 1,153 | ||
Total Assets | $7,220,993 | ||
Liabilities | |||
Other liabilities | 5,310 | ||
Total Liabilities | 5,310 | ||
Net Assets | $7,215,683 | ||
Fund shares outstanding | 489,421 | ||
Analysis of Net Assets | |||
Paid in Capital (unlimited shares authorized, without par value) | 4,846,862 | ||
Accumlated net realized loss on investments | (18,337) | ||
Unrealized net appreciation on investments | 2,387,158 | ||
Net Assets applicable to Fund shares outstanding | $7,215,683 | ||
Net Asset Value, Offering and Redemption price per share | $14.74 |
(The accompanying notes are an integral part of these financial statements)
12 | May 31, 2005 Semi-Annual Report |
STATEMENT OF OPERATIONS | SEXTANT GROWTH FUND (Graphic Omitted) |
For the semi annual period ended May 31, 2005 | |||
Investment income | |||
Dividend income | $23,635 | ||
Other income | 28 | ||
Gross investment income | $23,663 | ||
Expenses | |||
Investment advisory and administration fee | 24,219 | ||
Legal fees | 3,034 | ||
Filing and registration fees | 2,708 | ||
Audit fees | 2,257 | ||
Custodian fees | 1,930 | ||
Insurance | 1,757 | ||
Meetings | 574 | ||
Printing and postage | 276 | ||
Other expenses | 202 | ||
Total gross expenses | 36,957 | ||
Less custodian fees waived | (1,453) | ||
Net expenses | 35,504 | ||
Net investment income | $(11,841) | ||
Net realized loss on investments | |||
Proceeds from sales | 97,530 | ||
Less cost of securities sold (based on identified cost) | 117,044 | ||
Realized net loss | (19,514) | ||
Unrealized gain on investments | |||
End of period | 2,387,158 | ||
Beginning of period | 2,070,566 | ||
Increase in unrealized gain for the period | 316,592 | ||
Net realized and unrealized gain | 297,078 | ||
Net increase in net assets resulting from operations | $285,237 |
STATEMENT OF CHANGES IN NET ASSETS | SEXTANT GROWTH FUND (graphic omitted) |
Period ended | Year ended | |
May 31, 2005 | Nov. 30, 2004 | |
INCREASE IN NET ASSETS | ||
From Operations | ||
Net investment income (loss) | $(11,841) | $5,799 |
Net realized gain (loss) on investments | (19,514) | 91,659 |
Net increase in unealized appreciation | 316,592 | 454,857 |
Net increase in net assets | 285,237 | 552,315 |
Dividends to shareowners from | ||
Net investment income | - | (4,662) |
Capital gains distributions | - | (60,280) |
- | (64,902) | |
From fund share transactions | ||
Proceeds from sales of shares | 1,951,598 | 1,129,561 |
Value of shares issued in reinvestment of dividends | - | 64,879 |
1,951,598 | 1,194,440 | |
Cost of shares redeemed | (352,167) | (1,082,914) |
Net increase in net assets | 1,599,431 | 111,526 |
Total increase in net assets | $1,884,668 | $598,939 |
NET ASSETS | ||
Beginning of period | 5,331,015 | 4,732,076 |
End of period | $7,215,683 | $5,331,015 |
Undistributed net investment income | - | 1,177 |
Shares of the fund sold and redeemed | ||
Number of shares sold | 138,256 | 87,757 |
Number of shares issued in reinvestment of dividends | - | 4,572 |
138,256 | 92,329 | |
Number of shares redeemed | (24,365) | (83,204) |
Net increase in number of shares outstanding | 113,891 | 9,125 |
(The accompanying notes are an integral part of these financial statements)
May 31, 2005 Semi-Annual Report | 13 |
Expenses (Unaudited) | SEXTANT GROWTH FUND (graphic omitted) |
As a Sextant Growth Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.
EXAMPLE
The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].
ACTUAL EXPENSES
The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “"Expenses Paid During Year" to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Funds and other fund. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
SEXTANT GROWTH FUND
Beginning Account Value [Friday, May 28, 2004] | Ending Account Value [Tuesday, May 31, 2005] | Expenses Paid During Period* | |
Actual (17.68% return after expenses) | $1,000.00 | $1,176.80 | $12.95 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,038.10 | $12.13 |
* Expenses are equal to Sextant Growth Fund's annualized expense ratio of 1.19% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,088.40 over the period.
Portfolio Holdings | SEXTANT GROWTH FUND (graphic omitted) |
Industries | |
Medical | 19.6% |
Computers | 18.9% |
Cash | 13.7% |
Utilities | 6.8% |
Banking | 6.4% |
Electronics | 6.0% |
Construction | 5.9% |
Investments | 4.6% |
Other (less than 2%) | 4.3% |
Retail | 3.2% |
Telecommunications | 2.9% |
Food | 2.7% |
Metals | 2.7% |
Oil & Gas | 2.3% |
14 | May 31, 2005 Semi-Annual Report |
INVESTMENTS | SEXTANT INTERNATIONAL FUND (Graphic Omitted) |
As of May 31. 2005 | |||||
Issue | Number of Shares | Cost | Market Value | Country | Percentage |
Aircraft | |||||
Embraer Aircraft ADR | 1,713 | $38,169 | $51,904 | Brazil | 1.7% |
Automotive | |||||
Nissan Motor ADR | 2,000 | 30,085 | 39,321 | Japan | 1.3% |
Banking | |||||
Australia & New Zealand Banking ADS | 1,000 | 84,500 | 81,350 | Australia | 2.8% |
AXA ADS | 3,000 | 59,784 | 73,470 | France | 2.5% |
Banco Bilbao Vizcaya ADS | 3,800 | 39,182 | 59,622 | Spain | 2.0% |
ING Groep ADS | 2,200 | 54,954 | 61,006 | Netherlands | 2.1% |
Toronto-Dominion Bank | 1,400 | 18,159 | 59,542 | Canada | 2.0% |
SUB-TOTAL | 256,579 | 334,990 | 11.4% | ||
Building Materials | |||||
CRH plc ADR | 2,000 | 23,075 | 51,400 | Ireland | 1.8% |
Hanson plc ADR | 1,100 | 33,055 | 50,809 | United Kingdom | 1.7% |
James Hardie Industries NV ADS | 2,000 | 50,041 | 50,840 | Netherlands | 1.7% |
SUB-TOTAL | 106,171 | 153,049 | 5.2% | ||
Computers | |||||
Business Objects ADS* | 6,000 | 19,570 | 171,960 | France | 5.9% |
Dassault Systems ADR | 1,000 | 28,380 | 46,640 | France | 1.6% |
Sina* | 1,600 | 39,849 | 44,528 | China | 1.5% |
SUB-TOTAL | 87,799 | 263,128 | 9.0% | ||
Consumer Products | |||||
Allied Domecq plc | 1,200 | 40,576 | 60,780 | United Kingdom | 2.1% |
Coca-Cola Femsa ADS | 2,100 | 23,910 | 49,980 | Mexico | 1.7% |
SUB-TOTAL | 64,486 | 110,760 | 3.8% | ||
Electronics | |||||
Epcos AG ADS* | 2,500 | 57,307 | 32,325 | Germany | 1.1% |
Infineon Technologies AG* | 5,000 | 45,900 | 44,100 | Germany | 1.5% |
SUB-TOTAL | 103,207 | 76,425 | 2.6% | ||
Hotels & Motels | |||||
Fairmond Hotels & Resorts | 1,700 | 44,641 | 58,633 | Canada | 2.0% |
Machinery-Electrical | |||||
Nidec | 1,200 | 35,700 | 33,300 | Japan | 1.1% |
Medical-Drugs | |||||
Glaxo Smithkline plc ADR | 400 | 9,800 | 19,880 | United Kingdom | 0.7% |
Novartis AG ADR | 1,000 | 45,177 | 48,830 | Switzerland | 1.7% |
Soreno SA ADR | 2,000 | 29,761 | 30,520 | Switzerland | 1.0% |
SUB-TOTAL | 84,738 | 99,230 | 3.4% | ||
Metals & Mining | |||||
Fording Canadian Coal Trust | 600 | 50,625 | 53,904 | Canada | 1.9% |
Potash Corp of Saskatchewan | 500 | 34,234 | 90,410 | Canada | 3.0% |
Rio Tinto plc ADS | 500 | 31,175 | 59,510 | United Kingdom | 2.0% |
SUB-TOTAL | 116,034 | 203,824 | 6.9% | ||
Oil & Gas Production | |||||
EnCana | 1,000 | 35,020 | 69,340 | Canada | 2.4% |
Repsol-YPF ADR | 2,000 | 43,592 | 50,120 | Spain | 1.7% |
Total Fina Elf ADR | 500 | 21,864 | 55,595 | France | 1.9% |
SUB-TOTAL | 100,476 | 175,055 | 6.0% | ||
Paper Products | |||||
Metso ADS | 2,100 | 22,802 | 42,147 | Finland | 1.5% |
UPM-Kymmene Oyj ADS | 3,500 | 64,384 | 68,180 | Finland | 2.3% |
SUB-TOTAL | 87,186 | 110,327 | 3.8% | ||
Photographic Equipment | |||||
Canon, Inc ADR | 1,000 | 23,426 | 54,201 | Japan | 1.9% |
Fuji Photo Film ADR | 400 | 10,050 | 12,516 | Japan | 0.4% |
SUB-TOTAL | 33,476 | 66,717 | 2.3% | ||
Publishing-Books | |||||
Pearson plc ADS | 4,000 | 48,640 | 48,400 | United Kingdom | 1.7% |
Real Estate-Development | |||||
Intrawest | 1,200 | 21,840 | 26,760 | Canada | 0.9% |
Telecommunications | |||||
American Movil | 2,000 | 29,725 | 113,360 | Mexico | 3.9% |
BCE | 1,600 | 30,120 | 36,800 | Canada | 1.3% |
British Sky Broadcasting ADS* | 450 | 11,063 | 17,942 | United Kingdom | 0.6% |
China Mobil Ltd | 2,000 | 33,541 | 36,520 | China | 1.2% |
PT Indosat ADR | 1,000 | 20,952 | 25,750 | Indonesia | 0.9% |
SK Telecom ADS | 3,000 | 58,061 | 62,760 | South Korea | 2.1% |
Telefonica ADS | 1,000 | 33,610 | 50,440 | Spain | 1.7% |
Telefonos de Mexico ADS | 2,000 | 35,170 | 37,320 | Mexico | 1.2% |
Telus | 2,000 | 63,219 | 64, 060 | Canada | 2.2% |
SUB-TOTAL | 315,461 | 444,952 | 15.1% | ||
Transportation | |||||
Canadian Pacific Ltd. | 1,200 | 20,338 | 44,340 | Canada | 1.5% |
Lan Chile ADS | 3,500 | 24,636 | 128,450 | Chile | 4.4% |
SUB-TOTAL | 44,974 | 172,790 | 5.9% | ||
Utilities-Electric | |||||
Enel ADR | 1,300 | 58,877 | 58,760 | Italy | 2.0% |
Enersis ADR | 4,000 | 37,125 | 37,080 | Chile | 1.3% |
Korea Electric Power ADS | 4,000 | 61,261 | 59,560 | Korea | 2.0% |
SUB-TOTAL | 157,263 | 155,400 | 5.3% | ||
Utilities-Gas | |||||
Transport de Gas del Sur ADR | 1,500 | 18,807 | 9,300 | Argentina | 0.3% |
Total Investments | $1,795,732 | $2,634,265 | 89.7% | ||
Other Assets (net of liabilities) | 301,549 | 10.3% | |||
Total Net Assets | $2,935,814 | 100.0% | |||
* Non-income producing |
May 31, 2005 Semi-Annual Report | 15 |
FINANCIAL HIGHLIGHTS | SEXTANT INTERNATIONAL FUND (graphic omitted) |
Selected data per share of capital stock outstanding throughout the period: | ||||||
Period ended | For Year Ended November 30, | |||||
May 31, 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |
Net asset value at beginning of period | $9.40 | $8.05 | $6.07 | $7.24 | $8.52 | $8.32 |
Income from investment operations | ||||||
Net investment income | 0.04 | 0.03 | 0.05 | 0.02 | 0.04 | 0.43 |
Net gains or losses on securities (both realized and unrealized) | 0.61 | 1.35 | 1.97 | (1.16) | (1.30) | 0.20 |
Total from investment operations | 0.65 | 1.38 | 2.02 | (1.14) | (1.26) | 0.63 |
Less distributions | ||||||
Dividends (from net investment income) | - | (0.03) | (0.04) | (0.03) | (0.02) | (0.43) |
Total distributions | - | (0.03) | (0.04) | (0.03) | (0.02) | (0.43) |
Net asset value at end of period | $10.05 | $9.40 | $8.05 | $6.07 | $7.24 | $8.52 |
Total Return | 6.92% | 17.11% | 33.23% | (15.80)% | (14.80)% | 7.62% |
Ratios/Supplemental data | ||||||
Net assets ($000), end of period | $2,936 | $2,053 | $1,650 | $1,150 | $1,445 | $1,736 |
Ratio of expenses to average net assets | ||||||
Before fee waiver | 0.64% | 1.22% | 1.29% | 1.36% | 1.37% | 1.36% |
After fee waiver | 0.57% | 1.10% | 1.10% | 1.17% | 1.17% | 1.20% |
Ratio of net investment income after waiver to average net assets | 0.43% | 0.31% | 0.75% | 0.20% | 0.34% | 4.74% |
Portfolio turnover rate | 3% | 7% | 4% | 4% | 6% | 11% |
STATEMENT OF ASSETS & LIABILITIES | SEXTANT INTERNATIONAL FUND (graphic omitted) |
As of May 31, 2005 | |||
Assets | |||
Investments (cost $1,795,732) | $2,634,265 | ||
Cash | 301,255 | ||
Dividends receivable | 4,093 | ||
Total Assets | $2,939,613 | ||
Liabilities | |||
Other Liabilities | 3,799 | ||
Total Liabilities | 3,799 | ||
Net Assets | $2,935,814 | ||
Fund shares outstanding | 292,133 | ||
Analysis of Net Assets | |||
Paid in Capital (unlimited shares authorized, without par value) | 2,270,243 | ||
Accumulated net realized loss on investments | (172,962) | ||
Unrealized net appreciation on investments | 838,533 | ||
Net Assets applicable to Fund shares outstanding | $2,935,814 | ||
Net Asset Value, Offering and Redemption price per share | $10.05 |
(The accompanying notes are an integral part of these financial statements)
16 | May 31, 2005 Semi-Annual Report |
STATEMENT OF OPERATIONS | SEXTANT INTERNATIONAL FUND (graphic omitted) |
For the semi-annual period ended May 31, 2005 | |||
Investment income | |||
Dividend income (net of Foreign taxes of $3,915) | $24,243 | ||
Gross investment income | $24,243 | ||
Expenses | |||
Investment advisory and administration fee | 7,667 | ||
Filing and registration fees | 2,307 | ||
Custodian fees | 1,745 | ||
Legal fees | 1,390 | ||
Audit fees | 1,175 | ||
Insurance | 576 | ||
Printing and postage | 305 | ||
Trustee fees | 224 | ||
Other expenses | 76 | ||
Total gross expenses | 15,465 | ||
Less custodian fees waived | (1,587) | ||
Net expenses | 13,878 | ||
Net investment income | $10,365 | ||
Net realized gain on investments | |||
Proceeds from sales | 69,633 | ||
Less cost of securities sold (based on identified cost) | 67,252 | ||
Realized net gain | 2,381 | ||
Unrealized gain on investments | |||
End of period | 838,533 | ||
Beginning of period | 692,525 | ||
Increase in unrealized gain for the period | 146,008 | ||
Net realized and unrealized gain | 143,389 | ||
Net increase in net assets resulting from operations | $158,754 |
STATEMENT OF CHANGES IN NET ASSETS | SEXTANT INTERNATIONAL FUND (graphic omitted) |
Period ended | Year ended | |
May 31, 2005 | Nov. 30, 2004 | |
INCREASE IN NET ASSETS | ||
From Operations | ||
Net investment income | $10,365 | $5,934 |
Net realized gain on investments | 2,381 | 460 |
Net increase in unealized appreciation | 146,008 | 279,482 |
Net increase in net assets from operations | 158,754 | 285,876 |
Dividends to shareowners from | ||
Net investment income | - | (5,876) |
From fund share transactions | ||
Proceeds from sales of shares | 781,575 | 652,936 |
Value of shares issued in reinvestment of dividends | - | 5,863 |
781,575 | 658,799 | |
Cost of shares redeemed | (57,077) | (535,868) |
Net increase in net assets | 724,498 | 122,931 |
Total increase in net assets | $883,252 | $402,931 |
NET ASSETS | ||
Beginning of period | 2,052,562 | 1,649,631 |
End of period | $2,935,814 | $2,052,562 |
Undistributed net investment income | - | 2,020 |
Shares of the fund sold and redeemed | ||
Number of shares sold | 79,595 | 75,589 |
Number of shares issued in reinvestment of dividends | - | 624 |
79,595 | 76,213 | |
Number of shares redeemed | (5,721) | (62,906) |
Net increase in number of shares outstanding | 73,874 | 13,307 |
(The accompanying notes are an integral part of these financial statements)
May 31, 2005 Semi-Annual Report | 17 |
Expenses (Unaudited) | SEXTANT INTERNATIONAL FUND (graphic omitted) |
As a Sextant International Fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as bank wires.
EXAMPLE
The example is based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].
ACTUAL EXPENSES
The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Sextant Funds), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Sextant Funds do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
SEXTANT INTERNATIONAL FUND
Beginning Account Value [Friday, May 28, 2004] | Ending Account Value [Tuesday, May 31, 2005] | Expenses Paid During Period* | |
Actual (24.58% return after expenses) | $1,000.00 | $1,245.80 | $12.80 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,038.60 | $11.63 |
* Expenses are equal to Sextant International Fund's annualized expense ratio of 1.14% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,122.90 over the period.
Portfolio Holdings | SEXTANT INTERNATIONAL FUND (graphic omitted) |
Industries | Countries | |||
Telecommunications | 15.1% | Canada | 17.2% | |
Banking | 11.4% | France | 15.3% | |
Cash | 10.3% | Cash | 10.3% | |
Computers | 9.0% | United Kingdom | 8.8% | |
Other (less than 2%) | 7.0% | Mexico | 6.8% | |
Metals & Mining | 6.9% | Chile | 5.7% | |
Oil & Gas | 6.0% | Spain | 5.4% | |
Transportation | 5.9% | Japan | 4.7% | |
Utilities - Electric | 5.3% | Other (less than 2%) | 4.7% | |
Building Materials | 5.2% | Finland | 3.8% | |
Consumer Products | 3.8% | Netherlands | 3.8% | |
Paper & Products | 3.8% | Australia | 2.8% | |
Medical - Drugs | 3.4% | China | 2.7% | |
Electronics | 2.6% | Switzerland | 2.7% | |
Photography | 2.3% | Germany | 2.6% | |
Hotels & Motels | 2.0% | South Korea | 2.1% | |
18 | May 31, 2005 Semi-Annual Report |
Additional Performance Information
Average Annual Total Returns (as of 6/30/2005, per NASD requirement) | |||
1 Year | 5 Years | 10 Years | |
Sextant Growth Fund | 16.50% | 0.27% | 10.12% |
Sextant International Fund | 22.95% | 0.47% | 8.73%* |
Sextant Short-Term Bond Fund | 2.01% | 4.82% | 4.92% |
Sextant Bond Income Fund | 6.71% | 8.13% | 6.42% |
*Since inception, 9/28/95
Performance data quoted in this report represents past performance, is before any taxes payable by shareowners, and is no guarantee of future performance. The investment return and principal value of investment in the Funds fluctuate daily, and an investor's shares when redeemed may be worth more or less than the original cost. Morningstar, Inc. is an independent fund performance monitor. The average total return for a category is determined by Saturna Capital, utilizing the Morningstar database. Results are shown for twelve months in this report because of the Sextant Funds performance fee advisory structure.
NOTES TO FINANCIAL STATEMENTS |
Organization Unaudited Information Significant Accounting Policies Securities valuation: The cost of securities is the same for accounting and Federal income tax purposes. Security transactions are recorded on trade date. Realized gains and losses are recorded on the identified cost basis. 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., audit fees) are allocated to the Funds on the basis of relative daily average net assets. Withholding taxes on foreign dividends have been provided for in accordance with the Funds' understanding of the applicable country's tax rules and rates. Share valuation To discourage speculation, a 2% early redemption penalty on the Fund shares held less than thirty calendar days was initiated effective in March 2005. These penalties are deducted from the redemption proceeds otherwise payable to the shareowner and retained by the Funds as paid-in capital and included in the daily NAV calculation. Income and expenses: Expenses incurred by the Trust on behalf of the Funds (e.g., audit fees) are allocated to the Funds and the other fund of the Trust on the basis of relative daily average net assets. The advisor has agreed to certain limits on expenses as described below. Income taxes: |
May 31, 2005 Semi-Annual Report | 19 |
Dividends and distributions to shareowners:
The Trust acts as a distributor of its own shares, except in those states in which Saturna Brokerage Services, Inc. (a subsidiary of Saturna Capital Corporation) is itself registered as a broker-dealer and acts as distributor without compensation. Saturna Brokerage Services, Inc. is also the primary stockbroker used to effect portfolio transactions for Growth and International, and was paid $279 and $0, respectively in commissions during the six months ended May 31, 2005. One trustee is also a director and officer of Saturna Capital Corporation. The unaffiliated trustees receive a fee of $200 per meeting attended, and in the six months ending May 31, 2005, such fees totaled $2,400 for the Trust. Dividends |
Short Term Bond | Income | Income Per Share | Long-term Capital Gains | Long-term Capital Gains Per Share |
5/31/05 | $45,506 | $0.09 | $- | $- |
11/30/04 | $90,916 | $0.19 | $- | $- |
Bond Income | Income | Income Per Share | Long-term Capital Gains | Long-term Capital Gains Per Share |
5/31/05 | $59,518 | $0.11 | $- | $- |
11/30/04 | $111,643 | $0.22 | $- | $- |
Growth | Income | Income Per Share | Long-term Capital Gains | Long-term Capital Gains Per Share |
5/31/05 | $0 | $- | $- | $- |
11/30/04 | $4,622 | $0.012 | $60,280 | $0.163 |
International | Income | Income Per Share | Long-term Capital Gains | Long-term Capital Gains Per Share |
5/31/05 | $0 | $- | $- | $- |
11/30/04 | $5,876 | $0.27 | $- | $- |
Investments
At May 31, 2005, the net unrealized gain (loss) on investments for Bond Income, Short-Term Bond, Growth and International were $173,686, ($10,228), $2,387,158, and $838,533, which consist of unrealized gains of $176,399, $8,305, $2,599,306, and $912,713, and unrealized losses of $2,713, $18,533, $212,148, and $74,180, respectively.
During the six months ended May 31, 2005, Bond Income purchased $520,779 of securities and sold/matured $106,937. Comparable figures for Short-Term Bond are $889,970 purchased $493,096 sold/matured; for Growth $722,427 and $493,096; and for International, $585,745 and $69,633.
20 | May 31, 2005 Semi-Annual Report |
Availability of Sextant Portfolio Information (unaudited)
(1) The Sextant Funds file complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.
(2) The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov., and at www.saturna.com.
(3) The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
(4) The Funds make a complete schedule of portfolio holdings after the end of each month available to investors at http://www.saturna.com.
(1) A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (a) without charge, upon request, by calling Saturna Capital at 1-800 728-8762 (b) on the Funds’ website at http://www.saturna.com; and (c) on the SEC’s website at http://www.sec.gov.
(2) Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (a) without charge, upon request, by calling Saturna Capital at 1-800 728-8752; (b) on the Funds’ website at http://www.saturna.com; and (c) on the SEC’s website at http://www.sec.gov.
(logo) SATURNA CAPITAL Web: http://www.saturna.com 1-800-SATURNA This report is issued for the information of the shareoweners of the Funds of the Trust. 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 a series of Saturna Investment Trust
|
May 31, 2005 Semi-Annual Report | 21 |
Idaho Tax-Exempt Fund
(Graphic Omitted)
Semi-Annual Report
May 31 2005
Fellow Shareowners:
Idaho Tax-Exempt Fund provided a total return of 1.61% for the six months and 5.33% for twelve months ending May 31, 2005. Total Fund assets are unchanged at $8.47 million from our November 30, 2004 report.
In the last six months, while short-term rates rose, long-term rates actually declined-a phenomenon called "yield curve flattening." This type of yield curve shifting improves returns for long-bond maturities and reduces returns on short-bond maturities. With the average maturity of the Idaho Fund at the 5-year pivot point, the Fund was neither benefited or penalized by the curve shift.
Rates on long-term bonds remain low for several reasons: (1) Overseas demand continues strong, as our currency strengthens and our yields are relatively high. (2) Current income and capital preservation are replacing growth as the objective for millions of investors nearing retirement age. (3) Volatile stock market returns shift investor focus to bonds. (4) Core inflation rates are less than 1%, meaning bonds provide postive real (after inflation) returns.
We look forward to higher rates as an opportunity to buy higher yielding bonds and extend the dollar-weighted average maturity of the Fund towards a more normal 7-10 years, but cannot forecast when this is likely to happen.
Idaho's economy is strong, and it is a safe place to live. Idaho's pro-business policies, well managed budget and conservative governments give the State a strong competitive edge. The national economy is strong too, with high consumer confidence and declining federal deficits.
We invite you to review the advantages of the Idaho Tax-Exempt Fund, including low expenses, income free from Idaho and federal income taxes (including federal alternative minimum tax), a high-quality diversified bond portfolio and professional supervision. We welcome your suggestions. Only with your help can we be certain that we are meeting your investment needs - our primary objective.
Nicholas Kaiser, | Phelps McIlvaine, |
President | Vice President, Portfolio Manager |
July 15, 2005
Average Annual Total Returns | ||
1 year | 5 years | 10 years |
+5.27% | +5.47% | +5.06% |
Performance date for years ended 6/30/2005. Performance data quoted in this report represents past performance and is no guarantee of future performance. The investment return and principal value of investments in the Fund fluctuate daily, and an investor's shares when redeemed may be worth more or less than the original cost. |
22 | Semi-Annual Report May 31, 2005 |
Investments | Idaho Tax-Exempt Fund (grahic omitted) |
Rating* | Issuer | Coupon/Maturity | Face Amount | Market Value | Percentage |
As of May 31, 2005 | |||||
Electric Power | |||||
AAA | Idaho Falls Electric Revenue | 6.75% due 4/1/2019 | $155,000 | $156,676 | 1.8% |
Financial Services | |||||
AAA | Boise City General Fund Revenue | 5.20% due 12/1/2017 | 160,000 | 175,894 | 2.1% |
AAA | " | 5.25% due 12/1/2018 | 100,000 | 109,656 | 1.3% |
SUB-TOTAL | 260,000 | 285,550 | 3.4% | ||
General Obligation | |||||
AA- | Ada & Canyon JSD #2 | 5.50% due 7/30/2011 | 175,000 | 197,107 | 2.3% |
AA- | " | 5.50% due 7/30/2015 | 100,000 | 115,060 | 1.4% |
AAA | Adams County | 5.00% due 8/1/2014 | 110,000 | 112,608 | 1.3% |
A+ | Bannock County Jail | 5.05% due 9/1/2012 | 95,000 | 98,344 | 1.2% |
AAA | Bannock County SD #25 Pocatello | 5.20% due 8/1/2014 | 100,000 | 104,294 | 1.2% |
A+ | " | 5.25% due 8/1/2016 | 110,000 | 114,618 | 1.4% |
A+ | " | 4.90% due 8/1/2009 | 90,000 | 93,275 | 1.1% |
AAA | Bingham County SCD #55 Blackfoot | 4.65% due 8/1/2017 | 285,000 | 302,471 | 3.6% |
AA | Boise City ISD UTGO 1996 | 5.50% due 7/30/2016 | 150,000 | 156,793 | 1.8% |
AA | Boise City ISD Ref. Ada & Boise | 5.00 due 8/15/2014 | 100,000 | 111,070 | 1.3% |
A | Boise County SD #73 Horshoe Bend | 5.15% due 7/31/2010 | 125,000 | 129,865 | 1.5% |
AAA | Boundary County SCD #101 | 4.05% due 8/1/2015 | 200,000 | 208,354 | 2.5% |
AAA | " | 5.10% due 8/1/2022 | 130,000 | 142,051 | 1.7% |
AAA | Caldwell, Idaho | 5.30% due 5/15/2014 | 150,000 | 163,648 | 1.9% |
AAA | Canyon County SCD #139 Valley View | 4.05% due 8/15/2016 | 80,000 | 81,314 | 1.0% |
A | Canyon County SD #131 Nampa | 4.75% due 8/15/2019 | 325,000 | 344,896 | 4.1% |
AAA | Canyon County SD #134 Middleton | 4.65% due 7/31/2016 | 170,000 | 181,689 | 2.1% |
A | Canyon County SD #135 | 6.00% due 8/1/2007 | 50,000 | 49,809 | 0.6% |
AAA | Cassia & Twin Falls JSD #151 | 5.375% due 8/1/2013 | 85,000 | 87,134 | 1.0% |
AAA | " | 5.375% due 8/1/2015 | 75,000 | 76,883 | 0.9% |
AAA | Clark County SD #161 Dubois | 5.00 % due 8/1/2015 | 270,000 | 287,192 | 3.4% |
AAA | Idaho Housing & Finance Association | 4.80% due 6/1/2017 | 100,000 | 107,446 | 1.3% |
AAA | Kootenai County SD #273 | 5.00% due 7/30/2016 | 70,000 | 71,835 | 0.8% |
AAA | Kuna Sch/Comm Library District | 4.90% due 8/1/2013 | 75,000 | 78,817 | 0.9% |
AAA | Lemhi County | 4.20% due 8/1/2015 | 100,000 | 103,496 | 1.2% |
AAA | Meridian Free Library District | 5.00% due 8/1/2015 | 200,000 | 204,012 | 2.4% |
AAA | Oneida County SCD #351 Malad City | 4.00% due 8/15/2015 | 150,000 | 153,536 | 1.8% |
AAA | Owyhee & Canyon Cos. JSD #370 | 4.55% due 8/15/2016 | 160,000 | 171,614 | 2.0% |
AAA | Power & Cassia Cos. JSD #381 | 5.25% due 8/1/2012 | 60,000 | 64,156 | 0.8% |
AAA | Teton County SD #401 | 5.50% due 8/1/2012 | 75,000 | 76,990 | 0.9% |
SUB-TOTAL | 3,965,000 | 4,190,377 | 49.4% | ||
Housing | |||||
AA | Idaho Housing Agency, Single Family Mortgage, B-1 | 6.85% due 7/1/2012 | 10,000 | 9,946 | 0.1% |
AA | Idaho Housing Agency, Refunding Series A | 6.15% due 7/1/2024 | 45,000 | 44,786 | 0.5% |
AAA | Idaho Housing Agency, Single Family Mort Mezz-E-1 | 6.60% due 7/1/2011 | 15,000 | 14,727 | 0.2% |
AAA | Valley County Jail Project Ref. | 4.70% due 8/1/2014 | 125,000 | 128,955 | 1.5% |
SUB-TOTAL | 195,000 | 198,414 | 2.3% | ||
* These bond ratings reflect the adviser's current rating of each bond, as determined using Standard & Poor's and Moody's ratings. |
Semi-Annual Report May 31, 2005 | 23 |
Investments | Idaho Tax-Exempt Fund (grahic omitted) |
Rating | Issuer | Coupon/Maturity | Face Amount | Market Value | Percentage |
Medical/Hospitals | |||||
AAA | Idaho Health Facility Auth. Ref. Holy Cross | 5.25% due 12/1/2011 | $65,000 | $69,077 | 0.8% |
AAA | Idaho Health Facility Auth Rev Ref Holy Cross Sys Corp. Rev | 5.25% due 12/1/2014 | 110,000 | 116,629 | 1.4% |
AAA | Idaho Health Facility Auth. Corp Holy Cross Refunding | 5.00% due 12/1/2022 | 115,000 | 118,864 | 1.4% |
AAA | Madison CO Hospital COP | 5.00% due 12/1/2018 | 105,000 | 111,153 | 1.3% |
SUB-TOTAL | 395,000 | 415,723 | 4.9% | ||
Pollution Control | |||||
AAA | Idaho Bond Bank Authority | 4.30% due 9/1/2022 | 135,000 | 136,489 | 1.6% |
Real Estate | |||||
AAA | Boise City Urban Renewal Agency Pk Rev & RA | 5.00% due 9/1/2012 | 65,000 | 68,946 | 0.8% |
AAA | Idaho State Bldg Association | 5.05% due 9/1/2018 | 95,000 | 98,898 | 1.2% |
AAA | Idaho State Bldg Authority | 5.00% due 9/1/2021 | 100,000 | 104,856 | 1.2% |
A | Jerome Urban Renewal District | 5.40% due 9/1/2013 | 200,000 | 205,296 | 2.4% |
SUB-TOTAL | 460,000 | 477,996 | 5.6% | ||
Roads | |||||
A | Post Falls L.I.D. #91-4 | 7.95% due 4/15/2006 | 20,000 | 19,871 | 0.2% |
A | Post Falls L.I.D. #91-4 | 7.95% due 4/15/2007 | 20,000 | 19,855 | 0.2% |
SUB-TOTAL | 40,000 | 39,726 | 0.4% | ||
State Education | |||||
AAA | Boise State University Revs-Ref. | 5.10% due 4/1/2014 | 300,000 | 319,333 | 3.8% |
AAA | Idaho State Building Authority | 4.00% due 9/1/2016 | 105,000 | 106,300 | 1.3% |
AAA | Idaho State University Ref & I mpt | 4.90% due 4/1/2017 | 150,000 | 157,995 | 1.9% |
AAA | Idaho State University Rev | 4.625% due 4/1/2024 | 220,000 | 229,260 | 2.7% |
AAA | University of Idaho | 5.60% due 4/1/2015 | 185,000 | 195,504 | 2.3% |
AAA | University of Idaho Student Fee Rev. | 5.00% due 4/1/2019 | 200,000 | 217,006 | 2.6% |
SUB-TOTAL | 1,160,000 | 1,225,398 | 14.6% | ||
Sewer | |||||
A | Troy Sewer Revenue | 7.80% due 2/1/2006 | 15,000 | 14,945 | 0.2% |
A | Troy Sewer Revenue | 7.90% due 2/1/2007 | 15,000 | 14,966 | 0.2% |
A | Troy Sewer Revenue | 8.00% due 2/1/2008 | 15,000 | 14,982 | 0.2% |
A | Troy Sewer Revenue | 8.00% due 2/1/2009 | 20,000 | 19,983 | 0.2% |
A | Troy Sewer Revenue | 8.00% due 2/1/2010 | 20,000 | 20,009 | 0.2% |
SUB-TOTAL | 85,000 | 84,885 | 1.0% | ||
Urban Renewal | |||||
AAA | Boise City Urban Ren Agcy Lease Rev | 5.875% due 8/15/2025 | 190,000 | 210,841 | 2.5% |
AA | Pocatello Dev Auth Rev Al Tax Inc | 5.15% due 3/1/2011 | 150,000 | 153,865 | 1.8% |
SUB-TOTAL | 340,000 | 364,706 | 4.3% | ||
Water Supply | |||||
AAA | Blackfoot COP Series 2000 | 5.80% due 9/1/2018 | 135,000 | 151,120 | 1.8% |
AAA | Ketchum Water Revenue | 4.75% due 9/1/2013 | 60,000 | 62,367 | 0.7% |
AAA | McCall Water System | 6.25% due 9/1/2008 | 200,000 | 207,898 | 2.5% |
AAA | McCall Water System | 6.375% due 9/1/2014 | 70,000 | 72,231 | 0.9% |
AAA | Moscow Sewer Revenue | 4.125% due 11/1/2008 | 165,000 | 169,652 | 2.0% |
SUB-TOTAL | 630,000 | 663,268 | 7.9% | ||
Total Investments | (Cost = $7,974,472) | 7,820,000 | 8,239,208 | 97.2% | |
Other Assets (net of liabilities) | 233,442 | 2.8% | |||
Total Net Assets | 8,472,650 | 100.0% |
24 | Semi-Annual Report May 31, 2005 |
Financial Highlights | Idaho Tax-Exempt Fund (grahic omitted) |
Selected data per share of capital stock outstanding throughout the period: | Period ended May 31, | Year Ended November 30, | ||||
2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |
Net asset value at beginning of period | $5.39 | $5.46 | $5.37 | $5.28 | $5.13 | $5.01 |
Income from investment operations | ||||||
Net investment income | 0.10 | 0.19 | 0.21 | 0.22 | 0.22 | 0.23 |
Net gains or losses on securities (both realized & unrealized) | (0.01) | (0.07) | 0.09 | 0.09 | 0.15 | 0.12 |
Total from investment operations | 0.09 | 0.12 | 0.30 | 0.31 | 0.37 | 0.35 |
Less distributions | ||||||
Dividends (from net investment income) | (0.10) | (0.19) | (0.21) | (0.22) | (0.22) | (0.23) |
Total distributions | (0.10) | (0.19) | (0.21) | (0.22) | (0.22) | (0.23) |
Net asset value at end of period | $5.38 | $5.39 | $5.46 | $5.37 | $5.28 | $5.13 |
Total Return | 1.61% | 2.29% | 5.40% | 5.98% | 7.40% | 7.28% |
Ratios / Supplemental Data | ||||||
Net assets ($000), end of period | $8,473 | $8,472 | $7,692 | $6,943 | $6,650 | $5,628 |
Ratio of expenses to average net assets | ||||||
Before fee waivers | 0.48% | 0.95% | 0.88% | 0.88% | 0.90% | 0.94% |
After fee waivers | 0.47% | 0.93% | 0.85% | 0.80% | 0.79% | 0.80% |
Ratio of net investment income after fee waiver to average net assets | 1.79% | 3.56% | 3.78% | 4.14% | 4.21% | 4.69% |
Portfolio turnover rate | 3% | 15% | 6% | 11% | 13% | 14% |
Statement of Assets and Liabilities | Idaho Tax-Exempt Fund |
As of May 31, 2005 | ||
Assets | ||
Bond Investments (Cost $7,974,472) | $8,239,208 | |
Cash | 128,146 | |
Interest receivable | 117,959 | |
Insurance Reserve Premium | 801 | |
Total Assets | $8,486,114 | |
Liabilities | ||
Other Liabilities | 13,464 | |
Total Liabilities | 13,464 | |
Net Assets | $8,472,650 | |
Fund Shares Outstanding | 1,575,646 | |
Analysis of Net Assets | ||
Paid in Capital (unlimited shares authorized, without par value) | 8,236,508 | |
Accumulated net realized loss | (28,594) | |
Unrealized net appreciation on investments | 264,736 | |
Net Assets applicable to Fund shares outstanding | $8,472,650 | |
Net Asset Value, Offering and Redemption price per share | $5.38 |
(The accompanying notes are an integral part of these financial statements)
Semi-Annual Report May 31, 2005 | 25 |
Statement of Operations | Idaho Tax-Exempt Fund (grahic omitted) |
For the period ended May 31, 2005 | |||
Investment income | |||
Interest income | $201,947 | ||
Amortization of bond premium | (11,605) | ||
Accretion | 523 | ||
Other income | 180 | ||
Gross investment income | $191,045 | ||
Expenses | |||
Investment advisory and administration fee | 21,170 | ||
Audit fees | 5,179 | ||
Legal and Compliance fees | 3,831 | ||
Insurance | 2,763 | ||
Shareholder service fee | 2,274 | ||
Custodian fees | 1,833 | ||
Trustees fees | 1,381 | ||
Printing and postage | 1,178 | ||
Filing and registration fees | 587 | ||
Other expenses | 329 | ||
Total gross expenses | 40,525 | ||
Less custodian fees waived | (876) | ||
Net expenses | 39,649 | ||
Net investment income | $151,396 | ||
Net realized gain on investments | |||
Proceeds from sales | 216,460 | ||
Less cost of securities sold (based on identified cost) | 210,585 | ||
Realized net gain | 5,875 | ||
Unrealized gain on investments | |||
End of period | 264,736 | ||
Beginning of period | 293,708 | ||
Decrease in unrealized gain for the period | (28,972) | ||
Net realized and unrealized loss on investments | (23,097) | ||
Net increase in net assets resulting from operations | $128,299 |
Statement of Changes in Net Assets | Idaho Tax-Exempt Fund |
Period ended | Year ended | |
May 31, 2005 | Nov. 30, 2004 | |
INCREASE IN NET ASSETS | ||
From Operations | ||
Net investment income | $151,396 | $281,029 |
Net realized gain (loss) on investments | 5,875 | (13,470) |
Net decrease in unrealized appreciation | (28,972) | (76,652) |
Net increase in net assets from operations | 128,299 | 190,907 |
Dividends to shareowners from | ||
Net investment income | (151,512) | (281,029) |
From fund share transactions | ||
Proceeds from sales of shares | 389,691 | 1,610,860 |
Value of shares issued in reinvestment of dividends | 122,666 | 223,255 |
512,357 | 1,834,115 | |
Cost of shares redeemed | (488,918) | (963,286) |
Net increase in net assets from share transactions | 23,439 | 870,829 |
Total increase in net assets | $226 | $780,707 |
NET ASSETS | ||
Beginning of period | 8,472,424 | 7,691,717 |
End of period | $8,472,650 | $8,472,424 |
Shares of the fund sold and redeemed | ||
Number of shares sold | 72,411 | 298,944 |
Number of shares issued in reinvestment of dividends | 22,833 | 41,311 |
95,244 | 340,255 | |
Number of shares redeemed | (90,839) | (178,689) |
Net increase in number of shares outstanding | 4,405 | 161,566 |
(The accompanying notes are an integral part of these financial statements)
26 | Semi-Annual Report May 31, 2005 |
Expenses (Unaudtied) | Idaho Tax-Exempt Fund (grahic omitted) |
As an Idaho Tax-Exempt mutual fund shareowner, you incur ongoing costs, including management fees and other fund expenses. Unlike many mutual funds, you do not incur sales charges (loads) on purchase payments, reinvested dividends, or other distributions. Nor do you incur redemption fees, exchange fees, or fees related to Individual Retirement Accounts. You may incur fees related to extra services requested by you for your account, such as a checkbook to use for redemptions or bank wires.
EXAMPLE
The exampleis based on an investment of $1,000 invested at the beginning of the fiscal year and held for the entire year [Friday, May 28, 2004 to Tuesday, May 31, 2005].
ACTUAL EXPENSES
The first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you have invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $9,400 account value divided by $1,000 = 9.4), then multiply the result by the number in the first line under heading entitled “Expenses Paid During Year” to estimate the expenses you paid on your account during this fiscal year. The Fund also charges the following fees for extra services rendered on request, which you may need to add to determine your total expenses: $10 per checkbook, $25 per bank wire, $15 per overnight courier delivery.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (based on the last six months) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the year. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareowner reports of the other funds. You may wish to add other fees that are not included in the expenses shown in the table, such as IRA fees (there are no IRA fees with the Idaho Tax-Exempt Fund), and charges for extra services such as check writing and bank wires.
Please note that the expenses shown are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees (note that the Idaho Tax-Exempt Fund do not have any such transactional costs). Therefore, the second line is useful in comparing ongoing costs only, and may not help you determine the relative total costs of owning different funds.
IDAHO TAX-EXEMPT FUND
Beginning Account Value [Friday, May 28, 2004] | Ending Account Value [Tuesday, May 31, 2005] | Expenses Paid During Period* | |
Actual (5.33% return after expenses) | $1,000 | $1,053.30 | $9.55 |
Hypothetical (5% return before expenses) | $1,000 | $1,040.70 | $9.49 |
* Expenses are equal to Idaho Tax-Exempt Fund’s annualized expense ratio of 0.93% (based on the most recent semi-annual period of December 1, 2004 through May 31, 2005), multiplied by the average account value of $1,026.65 over the period.
Portfolio Holdings | Idaho Tax-Exempt Fund (grahic omitted) |
Ratings established | By Advisor | By Standard & Poor's | By Moody's Investor Services |
AAA | 72.3% | 38.9% | 63.2% |
AA | 9.3% | 8.8% | 4.3% |
A | 15.5% | 4.0% | 3.6% |
unrated | -- | 45.4% | 26.0% |
cash | 2.9% | 2.9% | 2.9% |
Semi-Annual Report May 31, 2005 | 27 |
Notes to Financial Statements | Idaho Tax-Exempt Fund (grahic omitted) |
Organization Significant Accounting Policies Investments: The cost of securities is the sam efor 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 taxes: Use of estimates: | assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Transactions with Affiliated Persons One trustee is also a director and officer of Saturna Capital Corporation. The unaffiliated trustees receive a fee of $200 per meeting attended. For the six months ending May 31, 2005, such fees totaled $2,400 for the Trust. Dividends ..............Tax Free......Income.......Long-term......Long-term Investments During the six months ended May 31, 2005, the Fund purchased $221,096 of securities and sold/matured $216,460 of securities. |
28 | Semi-Annual Report May 31, 2005 |
Availability of Idaho Tax-Exempt Fund Portfolio Information(unaudited) (1) The Idaho Tax-Exempt Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. (graphic omited)Idaho Tax-Exempt Fund
Web: http://www.saturna.com
(logo) This report is issued for the information of the shareowners 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.
|
Semi-Annual Report May 31, 2005 | 29 |
CONTROLS AND PROCEDURES
(a) Internal control over financial reporting is under the supervision of the principal executive and financial officers. On December 29, 2004, 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) No change.
EXHIBITS
Exhibits included with this filing:
(a) Code of Ethics. (not required)
(b) Certifications.
(1) Nicholas Kaiser, President, Saturna Investment Trust
(2) Christopher Fankhauser, Treasurer, Saturna Investment Trust
30 | Semi-Annual Report May 31, 2005 |
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: July 12, 2005
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: January 12, 2005
By:
/s/ Christopher Fankhouser
Christopher Fankhouser, Treasurer
Date: July 13, 2005
Semi-Annual Report May 31, 2005 | 31 |