1)
(1) Title of each class of securities to which transaction applies: __________________________

2)(2) Aggregate number of securities to which transaction applies: __________________________

3)(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set(Set forth the amount on which the filing fee is calculated and state how it was determined):

4)(4) Proposed maximum aggregate value of transaction:

5)(5) Total fee paid:

1)
(1) Amount Previously Paid: ______________________________________________________

2)(2) Form, Schedule or Registration Statement No.: _____________________________________

3)(3) Filing Party: ________________________________________________________________

4)(4) Date Filed: _______________________________

PRELIMINARY MATERIALS

SATURNA INVESTMENT TRUST

Sustainable Bond Fund

1300 North State Street
SEXTANT GROWTH FUND
SEXTANT INTERNATIONAL FUND
SEXTANT BOND INCOME FUND
SEXTANT SHORT-TERM BOND FUND
IDAHO TAX-EXEMPT FUNDBellingham, Washington 98225

February 11, 2016

Dear Fellow Shareowner:

You are cordially invited to participate in a special meeting of shareholders of the Sustainable Bond Fund (the "Fund"), a series of Saturna Investment Trust (the "Trust"). The meeting will take place on February 26, 2016 at 10:00 a.m. in the offices of Saturna Capital Corporation ("Saturna"), 1300 North State Street, Bellingham, WA 98225. The main purpose of the meeting is to consider a proposal to remove an investment restriction that prohibits the Fund from purchasing securities that are subject to legal or contractual restrictions on resale, known as "restricted securities." If approved by shareholders, the change will permit the Fund to invest in bonds that Saturna believes demonstrate sustainable characteristics without regard to whether such bonds are subject to legal or contractual restrictions because the bonds have not been registered under the Securities Act of 1933. Saturna believes removing the restriction will increase the investment opportunities for the Fund.

The proposal is more fully described in the enclosed Proxy Statement. We encourage you to read the enclosed Proxy Statement before voting.

This change requires your approval and your vote is important. The Board of Trustees of the Trust recommends that you vote "FOR" the proposal.

If you own your shares directly (not through a broker-dealer) you can vote in any of the following ways:

• By phone, with a toll-free call to 800-728-8762;
• By mail, returning your proxy card in the enclosed postage-paid envelope; or
• In person, at the meeting.

If you own your shares through a broker-dealer or other financial intermediary, please follow the instructions on the enclosed proxy ballot on how to vote by mail, telephone, or via the internet.

Even if you plan to attend the meeting, we encourage you to vote by phone or mail as soon as possible. We must receive your vote by 5:00 p.m. (Pacific Time) on February 25, 2016, in order to count your vote.

It is a privilege to manage the Fund on your behalf. If you have any questions or need assistance voting, please contact your financial advisor or call us at 800-728-8762.

SATURNA INVESTMENT TRUST

Sustainable Bond Fund

1300 North State Street
Bellingham, Washington 98225

(1-800-728-8762)

NOTICE OF MEETING OF SHAREOWNERS
To be Held on February 26, 2016

NOTICE OF SPECIAL MEETING OF SHAREOWNERS
TO BE HELD TUESDAY, AUGUST 15, 2006

To the Shareowners of Saturna Investment Trust:be Held on February 26, 2016

NOTICE is hereby given thatIS HEREBY GIVEN of a Special Meetingspecial meeting of the shareowners of Sextant Growth Fund, Sextant International Fund, Sextant Bond Income Fund, Sextant Short-TermSustainable Bond Fund and Idaho Tax-Exempt Fund (“Funds”(the "Fund"). The meeting will be held in the offices of Saturna Capital Corporation,at 1300 North State Street, Bellingham, WAWashington, 98225, on February 26, 2016, at 3 PM (Pacific Time) on August 15, 2006. The10:00 a.m., for the purpose of approving a proposal to remove the Special Meeting isFund's fundamental investment restriction regarding investing in restricted securities (securities that are subject to consider and act uponlegal or contractual restrictions on resale or are otherwise not readily marketable).

In addition, the following proposals, andFund's shareowners will be asked to transact such other business as may properly come before the Special Meetingmeeting or any adjournments, thereof.

1) To elect a Boardpostponements, or delays of Trustees (all funds)the meeting.

2) To approveShareowners of record of the adoptionFund as of a Plan of Distribution pursuant to Rule 12b-1 under the Investment Company Act of 1940 (all funds except Idaho Tax-Exempt Fund)

3) To transact any other business that may properly come before the Special Meeting

You are entitled to vote at the Special Meeting and any adjournment thereof if you owned Shares at the close of business on July 3, 2006. If you attendDecember 31, 2015, are entitled to notice of and to vote at the meeting and any adjournments, postponements, or delays of the meeting. Shareowners are entitled to one vote for each full share owned and a proportionate vote for each fractional share owned.

Your vote is important regardless of the number of shares you mayown. Your prompt vote your Shareswill help save resources that would otherwise be required if further solicitation is necessary to obtain the necessary approval. Please vote by mail, telephone, or by attending the meeting in person. Ifperson, as described more fully in the accompanying proxy statement. We encourage you do not expectto read the proxy statement before voting and select the method of voting that is most convenient for you. Even if you plan to attend the meeting please complete, sign, date, and return the enclosed proxy card in the enclosed postage-paid envelope. You may revoke your proxyperson, we encourage you to vote by written notice to the Trust before the meeting, by a subsequent valid proxy,mail or by request at the meeting before the vote. To avoid unnecessary expense, we ask your cooperation in voting promptly, no matter how large or small your holdings may be.telephone as soon as possible.

	By order of the Board of Trustees
	/s/ Thomas R. Phillips
	Thomas R. Phillips
February 11, 2016	Secretary

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SATURNA INVESTMENT TRUST

Sustainable Bond Fund

1300 North State Street
ETHEL B. BARTOLOME, Secretary

Bellingham, Washington 98225

June 30, 2006

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PROXY STATEMENT

YOUR VOTE IS IMPORTANTMEETING OF SHAREOWNERS
NO MATTER HOW MANY SHARES YOU OWNTo be Held on February 26, 2016

Please indicate your voting instructions on the enclosed proxy card, sign, and date the card, and return it in the envelope provided. IF YOU SIGN, DATE AND RETURN THE PROXY CARD BUT GIVE NO VOTING INSTRUCTIONS, YOUR SHARES WILL BE VOTED “FOR” THE PROPOSALS DESCRIBED ABOVE.TABLE OF CONTENTS To avoid the additional expense of further solicitation, we ask your cooperation in mailing your proxy card promptly. Shares that are registered in your name may also be voted by faxing your completed proxy card(s) to 360/734-0755.

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SATURNA INVESTMENT TRUST
1300 N. State Street, Bellingham, WA 98225
(1-800-728-8762)

PROXY STATEMENT FOR
SPECIAL MEETING OF SHAREOWNERS AUGUST 15, 2006
______________________INTRODUCTION

This Proxy Statement is furnished in connection with athe solicitation of proxies made by and on behalf of the Board of Trustees (the "Board") of Saturna Investment Trust (the “Trust”"Trust"), to be usedvoted at the Special Meetinga special meeting of the shareowners of eachSustainable Bond Fund (the "Fund"), a series of the Trust: Sextant Growth Fund, Sextant International Fund, Sextant Bond Income Fund, Sextant Short-Term Bond Fund and Idaho Tax-Exempt Fund,Trust, to be held on Tuesday, August 15, 2006,February 26, 2016, at 3 PM in10:00 a.m., at 1300 North State Street, Bellingham, Washington, 98225 and at any adjournments thereof (the "Meeting"). For ease and clarity of presentation, shares of beneficial interest of the Fund are referred to herein as "Shares," and owners of Shares are referred to as "Shareowners." This Proxy Statement and the enclosed proxy ballot are first being mailed to Shareowners on or about February 11, 2016.

The Fund is a diversified, open-end management investment company and is a series of the Trust, which is organized as a business trust under the laws of the State of Washington. The Board has fixed the close of business on December 31, 2015 (the "Record Date") as the record date for determining the Shareowners of the Fund who are entitled to notice of, and to vote at, the Meeting. As of the Record Date, there were issued and outstanding 723,262 shares of the Fund. A list of the shareholders of record will be available for inspection at the offices of Saturna Capital Corporation ("Saturna"), 1300 North State Street, Bellingham, WA 98225.

The purposeWashington, 98225, until the date of the Meeting is set forth in the accompanying Notice. The solicitation is being made primarily by the mailingMeeting. Only Shareowners of this Proxy Statement and the accompanying proxy on or about July 6, 2006.

For a free copy of the Trust’s annual report for the fiscal year ended November 30, 2005 and the semiannual report for the fiscal period ended May 31, 2006, call 1-800-728-8762 or write to Saturna Capital Corporation at 1300 N. State Street, Bellingham, WA 98225.

VOTING INFORMATION

The Trust currently has five investment portfolios: Sextant Growth Fund, Sextant International Fund, Sextant Bond Income Fund, Sextant Short-Term Bond Fund and Idaho Tax-Exempt Fund, each of which has issued only one class of Shares of beneficial interest ("Shares"). The holders of Shares whose names appear of record on the books of a Fund at the close of business on July 3, 2006the Record Date are entitled to notice of, and to vote at, the Meeting.

At the Meeting, Shareowners will be asked to approve a proposal to delete the fundamental investment restriction regarding investing in "restricted securities" (those which are subject to legal or contractual restrictions on resale or are otherwise not readily marketable) (the "Proposal"). If Shareowners approve the Proposal, the Fund would be permitted to invest in "restricted securities" that are consistent with the Fund's investment objective and strategies, and in accordance with the Fund's other fundamental restrictions and in compliance with the Fund's liquidity policies and procedures. The Proposal is described more fully in this Proxy Statement.

Only Shareowners of record at the close of business on the Record Date are entitled to notice of, and to vote at, the Meeting. Shareowners are entitled to one vote for each full share and a proportionate fractional vote for each fractional shares held as of the Record Date. Each properly executed proxy ballot received before the Meeting, unless revoked, will be voted at the Meeting in accordance with the Shareowner's instructions. If a proxy ballot is properly executed and timely returned, but the Shareowner did not provide any voting instructions, the Shares represented by the proxy ballot will be voted "FOR" the Proposal. Any Shareowner giving a proxy may revoke it at any time before it is exercised by submitting to the Fund a written notice of revocation or subsequently executed proxy, or by attending the Meeting and voting in person.

If your Shares are held for your benefit by a financial intermediary, such as a broker, the financial intermediary is likely the Shareowner of record. Please consult with your financial intermediary regarding your ability to vote at the Meeting or how to provide or revoke your voting instructions.

The Fund will furnish, without charge, a copy of the Fund's most recent annual report and most recent semiannual report succeeding the annual report, if any, to any Shareowner upon request. A Shareowner may obtain such report(s) by writing to the Fund, by calling 800-728-8762 or by downloading the report at www.saturna.com.

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PROPOSAL 1
TO DELETE THE FUND'S FUNDAMENTAL INVESTMENT RESTRICTION REGARDING RESTRICTED SECURITIES

Background
Mutual funds are required by the Investment Company Act of 1940 (the "1940 Act") to adopt fundamental investment restrictions governing the fund's classification and certain investment activities. In addition, mutual funds may adopt fundamental investment restrictions governing other investment operations. A fundamental investment restriction is one that can only be changed with the approval of the holders of a majority of the outstanding Shares of the Fund.

The Fund is organized as a series of the Trust. When the Fund was initially organized, it adopted the fundamental investment restrictions of the Trust that applied to all of the Trust's other series existing at the time. Among those fundamental investment restrictions is a restriction that states the Fund:

...shall not purchase "restricted securities" (those which are subject to legal or contractual restrictions on resale or are otherwise not readily marketable)....

This fundamental investment restriction regarding restricted securities (the "Investment Restriction") is not among those investment restrictions that the Fund must adopt under the 1940 Act. In general, restricted securities are those securities that are subject to restrictions on resale because they have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act").

The Fund was recently organized in December 2014. At that time, it adopted the Trust's investment restrictions, which have been in place for nearly 30 years. The Trust adopted the Investment Restriction in February 1987 as a risk-limiting measure at a time when the Investment Restriction did not unduly limit the funds' universe of potential investments and the market for fixed income restricted securities was not as developed as it is today. Since that time, industry and regulatory developments, especially in the bond markets, have resulted in many bond-oriented mutual funds electing to invest (sometimes substantially) in restricted securities.

Regulatory and Industry Developments Regarding Restricted Securities
A defining feature of mutual funds is the ability of fund shareholders to redeem their shares on any day the fund is open and receive the net asset value of such shares within a prescribed time following redemption. Accordingly, the 1940 Act requires that a mutual fund must maintain the ability to buy back its shares at current net asset value within 7 days after the shareowner tenders the shares to the fund for redemption. To ensure that funds maintain their ability to meet their redemption obligations, the staff of the U.S. Securities and Exchange Commission ("SEC") has a long-standing position that generally limits an open-end fund's aggregate holdings of illiquid assets to no more than 15% of the fund's net assets. Under this SEC staff position, a security is considered illiquid if the fund cannot be sold in the ordinary course of business within 7 days at approximately the price at which the fund has valued the security.

In addition to the 15% limit on illiquid securities referenced above, the SEC staff has a long-standing interpretative position that a restricted security generally would be regarded as an illiquid security. The SEC staff first articulated this position in guidance published in 1969.

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In connection with more recent developments in the capital markets, the SEC adopted Rule 144A under the Securities Act in April 1990 to facilitate trading in the secondary market of restricted securities among qualified institutional buyers. When adopting Rule 144A, the SEC modified its position with respect to the liquidity determination of restricted securities (including foreign securities) held by mutual funds and concluded that the determination of the liquidity of Rule 144A securities held in a fund's portfolio is a question of fact for the board of directors to determine based upon the trading markets for the specific security.

In addition to Rule 144A, the SEC adopted Regulation S in 1990 ("Reg S") in response to the growth of global capital markets and to provide a safe harbor exemption from registration under the Securities Act for offshore securities offerings. Although Reg S imposes various restrictions on the resale of securities within the U.S., such securities are often freely traded in foreign markets and may eventually be resold to U.S. persons (including mutual funds) in the secondary market under certain circumstances.

Since these regulatory developments, the markets for trading many securities, the resale of which is restricted under Rule 144A and Reg S, has become very deep and liquid. As a result, many mutual fund boards have adopted policies and procedures for determining when certain types of restricted securities, including Rule 144A and Reg S securities, may be deemed liquid notwithstanding the restriction on the resale of such securities.

Reasons for the Proposal
The Fund's investment objective is current income and capital preservation. In seeking to achieve its investment objective, the Fund invests primarily in bonds of issuers located throughout the world that Saturna believes demonstrate sustainable characteristics. Saturna seeks to identify issuers that have such sustainable characteristics, including an established operating history, consistent profitability, financial strength, and low risk in the areas of environment, social responsibility, and corporate governance. The Fund may invest up to 35% of its assets in such bonds that are rated below investment grade or are unrated.

As a result of the Investment Restriction, the Fund is prohibited from purchasing restricted securities that would otherwise be consistent with the Fund's investment objective and strategies, even though some of these restricted securities may be liquid and present attractive investment opportunities for the Fund. Saturna's analysis indicates that approximately 40% of investment grade bonds and nearly 80% of below investment grade (or unrated) bonds in which the Fund may otherwise invest are restricted securities. Excluding these restricted securities from the Fund's investable universe significantly and unduly limits the investment opportunities for the Fund.

The Investment Restriction was originally intended as a risk-limiting measure to ensure that a fund's portfolio held securities that were freely tradable on exchanges or other securities markets. As a result of the regulatory and industry developments described above, many types of fixed income restricted securities are traded among qualified institutional buyers in volumes sufficient to provide liquidity for holders of such securities.

Investing in restricted securities does involve risk. There can be no assurance that an active trading market will exist at any time for any particular restricted security and limitations on the resale may adversely impact the Fund's ability to sell a restricted security promptly at a reasonable price. In addition, restricted securities may be more difficult to value because market quotations may not be readily available and the securities may have significant volatility.

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Saturna, as the Fund's investment manager, seeks to mitigate these risks by evaluating the investment risk and liquidity of the Fund's investments, including any investments in restricted securities. The Proposal is not intended to permit the Fund to materially increase its investments in illiquid securities. Saturna will continue to manage the Fund in a manner that is consistent with SEC staff guidance and will continue to limit the Fund's purchase of securities that it deems to be illiquid.

Saturna believes that if shareholders approve the Proposal to delete the Investment Restriction, such approval would would permit the Fund to expand its investable universe without materially increasing the Fund's liquidity risk. Saturna would continue to manage the Fund in substantially the same manner; it would continue to evaluate and monitor the liquidity of the Fund's investments; and it would continue to limit the purchase of illiquid securities.

As discussed in greater detail below, the Board considered the recommendations of Saturna and voted to approve the Proposal.  The Board also directed the officers of the Fund to submit the Proposal to Shareowners of the Fund for approval. If Shareowners do not approve the Proposal, the Board may consider other options to enhance the Fund's ability to invest in a broader universe of securities.

Board Considerations
The Board approved the Proposal at a meeting held on December 22, 2015. At the meeting, Saturna informed the Board that it believes that if the Proposal were approved and implemented, the Fund would continue to be managed in the same manner, but would have the opportunity to selectively invest in restricted securities that met the Fund's investment criteria.

The Board carefully considered the purpose of the Investment Restriction and the risks associated with investing in restricted securities. The Board also considered the Proposal in light of the potential benefits to the Fund and its shareholders and weighed those benefits against the risks associated with permitting the Fund to invest in restricted securities. The Board concluded that eliminating the Investment Restriction and permitting the Fund to invest in restricted securities would better position the Fund to capitalize on investment opportunities and potentially make the Fund more competitive with its peers.

After carefully reviewing the information provided by Saturna, the Board unanimously approved the Proposal and recommended that Shareowners approve the change. The Board's decision was based on a number of factors, including the following:

• The investment risks, including liquidity risk, associated with investing in restricted securities;
• The fact that the Fund would continue to be managed in accordance with its investment objective, strategies, and its other fundamental investment restrictions, and that the Fund's investment criteria would otherwise remain unchanged;
• The fact that the Fund's investments in illiquid securities would not be materially increased, or increased at all, and the Fund's overall risk profile generally would remain unchanged;
• Saturna's experience and knowledge in evaluating the investment risks associated with the Fund's investments;
• Saturna's implementation of the Fund's policies and procedures regarding liquidity and the liquidity requirements imposed under the policies and procedures;

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• The industry and regulatory developments regarding restricted securities, and the fact that the Fund would operate within established parameters regarding restricted securities;
• The competitive disadvantage the Fund would continue to face in light of continuing to operate the Fund with the Investment Restriction; and
• The benefit to the Fund and its shareholders resulting from permitting the Fund to invest its assets in accordance with its investment objective and strategies without any undue limitations regarding whether a particular security was registered under the Securities Act.

The Board members unanimously recommend that Shareowners of the Fund vote FOR the Proposal.

VOTING AND MEETING INFORMATION

Ownership of Fund Shares
Beneficial owners of more than 5% of the outstanding Shares of the Fund as of the Record Date are listed on Appendix A. Except as shown in that Exhibit, to the knowledge of the Fund, as of the Record Date, no person is a beneficial owner of more than 5% of the outstanding Shares of the Fund.

Solicitation Method and Costs
The solicitation of proxies will be primarily by mail. Officers of the Trust and other employees of Saturna may solicit proxies by telephone, facsimile, or in-person. Authorizations to execute proxies may be obtained by telephonic or electronically transmitted instructions in accordance with procedures designed to authenticate the Shareowner's identity. In all cases where a telephonic proxy is solicited, the Shareowner will be asked to verify his or her identity, and to confirm that the Shareowner has received the Proxy Statement and proxy card. Shareowners requiring further information as to telephonic or facsimile transmitted voting instructions or the proxy generally should contact the Fund toll-free at 800-728-8762.

The Fund may request brokerage houses, custodians, nominees, and fiduciaries that are Shareowners of record to forward proxy materials to beneficial owners. Saturna will reimburse these persons for their reasonable expenses in forwarding proxy solicitation material to the beneficial owners of the Shares of the Fund. The total cost of the solicitation is expected to be approximately $2,500 and will be borne by Saturna.

Quorum and Required Vote
A quorum for the Meeting consists of holders of a majority of the outstanding Shares of the Fund present in person or by proxy. Approval of the Proposal will require the affirmative "vote of a majority of the outstanding Shares" of the Fund. The 1940 Act defines the term "vote of a majority of the outstanding voting securities" as the lesser of: (1) approval by 67% or more of the Shares present and entitled to vote at the Meeting, if the holders of more than 50% of the outstanding Shares of the Fund entitled to vote at the Meeting are present at the Meeting or represented by proxy; or (2) more than 50% of the outstanding voting securities of the Fund entitled to vote on the Proposal.

If Shareowners do not approve the Proposal, Saturna will continue to manage the Fund in accordance with the Investment Restriction and may recommend other options to the Board for its consideration.

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Abstentions and Broker Non-Votes
Shares for which there is an abstention or broker non-vote (i.e., proxy ballots from brokers or other nominees indicating that they have not received voting instructions from the beneficial owner on the Proposal for which brokers or nominees do not have discretionary voting authority), if any, will be counted for quorum purposes, but will have the same effect as a vote against the Proposal for purposes of determining whether the Proposal has passed.

Recording and Tabulation of Votes
Votes cast by proxy or in person at the Meeting will be tabulated by the Inspector of Election appointed for the Meeting. The Inspectors of Election will determine whether a quorum is present at the Meeting for the Fund. If the enclosed proxy ballot is properly executed and returned in time to be voted at the Meeting, the proxies named therein will vote the Shares represented by the proxy in accordance with the instructions marked thereon.

If you hold your shares directly with the Fund (i.e., not through a broker or other financial intermediary) and you properly execute and timely return the proxy ballot, but you do not provide any voting instructions, the Shares represented by the proxy ballot will be voted "FOR" the Proposal. If you hold your shares through a broker or other financial intermediary and you properly execute and timely return the proxy ballot to your broker or financial intermediary, or provide other authorization to vote your Shares, but you do not provide any voting instructions, the broker or financial intermediary will follow its own policies and procedures for voting such Shares. In such circumstances, the broker or financial intermediary may vote such uninstructed Shares "FOR" the Proposal or vote the uninstructed Shares in proportion to the votes cast by other Shares held by the same broker or financial intermediary that did provide voting instructions.

Shareowners are entitled to one vote for each full Share, and a proportionate vote for each fractional Share, of the Fund held as of the Record Date. Under Washington law, Shares owned by two or fraction thereof. Asmore persons (whether as joint tenants, co-fiduciaries, or otherwise) will be voted as follows, unless a written instrument or court order providing to the contrary has been filed with the Secretary of July 3, 2006 the outstandingFund: (1) if only one votes, that vote binds all; (2) if more than one votes, the vote of the majority binds all; and (3) if more than one votes and the vote is evenly divided, the vote will be cast proportionately.

Revocation
Any Shareowner giving a proxy may revoke it at any time before it is exercised by submitting to the applicable Fund the written notice of revocation or subsequently executed proxy, or by attending the Meeting and voting in person. If you hold your Shares through a broker or other financial intermediary, please consult your broker or financial intermediary regarding your ability to revoke your voting instructions.

Attendance at Meeting
Attendance at the Meeting will be limited to the Fund's shareholders as of each Fund were as follows:

One-half of each Fund’s Shares outstanding on July 3, 2006, representedthe Record Date. If you plan to attend the Meeting in person, to gain admission you must show valid photographic identification, such as your driver's license or by proxy,passport. If you hold Fund shares through a financial intermediary, to gain admission you also must show satisfactory proof of ownership of shares in a Fund, such as your voting instruction form or a statement indicating ownership as of the Record Date. If you hold Fund shares through a financial intermediary, you will constitute a quorum and mustnot be present for the transaction of businessable to vote in person at the meeting. All Shares that are votedMeeting unless you previously have obtained a ''legal proxy'' from your financial intermediary and votes to ABSTAIN will be counted towards establishing a quorum.

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VOTING OF PROXIES

If a quorum is not present it at the meetingMeeting. Even if you plan to attend the Meeting, please promptly follow the enclosed instructions to submit voting instructions by telephone or a quorum is present butvia

6

the Internet. Alternatively, you may submit voting instructions by signing, dating, and returning your proxy card.

Adjournment
If sufficient votes to approve one or more of the proposalsProposal are not received by the Fund before the meeting, the persons named as proxies may propose one or more adjournments of the meetingMeeting with respect to permitthe Proposal to allow further solicitation of proxies. In determining whether to adjourn the Meeting, the following factors may be considered: the percentage of votes actually cast; the percentage of negative votes actually cast; and the nature of any further solicitation and any information to be provided to Shareowners with respect to such solicitation. Any such adjournment will require thean affirmative vote of a majority of thosethe Shares represented at the meetingpresent in person or by proxy.proxy (whether or not sufficient to constitute a quorum) and entitled to vote at the Meeting. The persons named as proxies will vote those proxies that they are entitled to vote FOR any proposal in favor of suchon an adjournment and will voteafter considering the best interests of all Shareowners.

ADDITIONAL INFORMATION

Management is not aware of any matters to come before the Meeting other than those proxies required to be voted AGAINST a proposal against such adjournment. A shareowner vote may be taken on one or more ofset forth in the proposals in this Proxy Statement prior toNotice. If any such adjournment if sufficient votes have been received and it is otherwise appropriate.

Broker non-votes are Shares held in street name for whichother matters do come before the broker indicates that instructions have not been received fromMeeting, the beneficial owners or other persons entitled to vote and for which the broker does not have discretionary voting authority. Abstentions and broker non-votes will be counted as Shares present for purposes of determining whether a quorum is present but will not be voted for or against any adjournment or proposal. Accordingly, abstentions and broker non-votes effectively will be a vote against adjournment or against any proposal where the required vote is a percentage of the Shares present or outstanding. Abstentions and broker non-votes will not be counted, however, as votes cast for purposes of determining whether sufficient votes have been received to approve a proposal.

With respect to Shares held in Individual Retirement Accounts and other tax-deferred custodial accounts (including Traditional, Rollover, SEP, SARSEP, Roth, SIMPLE IRAs, HSAs, and ESAs) (“Tax-Deferred Accounts”), the Custodian (often, Saturna Capital) for the Tax-Deferred Accounts will vote those Shares for which it has received instructions from shareowners only in accordance with such instructions. If shareowners of Tax-Deferred Accounts do not vote their Shares, the Custodian for the Tax-Deferred Accounts will vote their Shares for them, in the same proportion as other shareowners of Tax-Deferred Accounts have voted.

The individuals named as proxies on the enclosed proxy ballot will vote, act, and consent with respect thereto in accordance with your directions as indicated ontheir best judgment.

Timeliness of Shareowner Proposals
The Fund does not hold an annual meeting and currently does not intend to hold annual or special meeting of Shareowners unless required to do so by the proxy ballot, if your proxy ballot is received properly executed by you1940 Act or by your duly appointed agent or attorney-in-fact. If you sign, date and returnWashington law. Any Shareowner proposal to be presented for action at the proxy ballot, but give no voting instructions, your Shares will be voted in favor of approval of each of the proposals, and the duly appointed proxies may, in their discretion, vote upon such other matters as may come before the meeting. The proxy ballot may be revoked by giving another proxy or by letter or e-mail revoking the initial proxy. To be effective, revocationFund's next Shareowner meeting must be received at the Fund's principal executive offices within a reasonable time in advance of the date solicitation is made for such meeting. A timely submission of a proposal does not guarantee that the Fund will include the proposal in a proxy statement.

Shareowner Communications
Shareowners who want to communicate with the Board or any individual Board member(s) should write to the attention of the Secretary of the Trust, 1300 North State Street, Bellingham, WA 98225. Communications to the Board must be signed by the Trust priorShareowner and must specify: (1) the Shareowner's name and address; (2) the number of Fund shares owned by the Shareowner; (3) other fund(s) in which the Shareowner owns shares and the amount of such shares and (4) if applicable, the name of the broker or other financial intermediary that holds Fund shares in its name for the Shareowner's benefit. The Secretary will forward such communications to the Board or the applicable Board member(s) at the next regularly scheduled meeting or sooner if the Secretary determines that the communications require more immediate attention.

Householding
We have adopted a policy that allows us to send only one copy of a prospectus, proxy statement, annual report, or semiannual report to certain shareholders residing in the same ''household.'' This reduces Fund expenses, which benefits you and must indicateother shareholders. If you need additional copies or do not want your mailings to be ''householded,'' please call us at 800-728-8762 or send a written request with your name, and your account number. If you attendnumber to the meeting in person you may, if you wish, vote by ballotFund at 1300 North State Street, Bellingham, WA 98225.

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Investment Adviser and Underwriter
Saturna Capital Corporation, 1300 North State Street, Bellingham, Washington, 98225, acts as investment adviser to the Fund. Saturna Brokerage Services, Inc., a subsidiary of Saturna Capital Corporation located at the meeting, thereby canceling any proxy previously given. In additionsame address, acts as principal underwriter to solicitation by mail, proxies may be solicited by telephone, telegraph, facsimile, electronic means or by personal interview by representatives of the Trust. No solicitationsFund.

Effective Date
If Shareowners approve the Proposal, it is anticipated that the change will be made by specifically engaged agents ofimplemented as soon as practicable following the Trust or other paid solicitors.

Unless otherwise directed byMeeting. The change will be reflected in the shareowner giving the proxy, the persons acting under the accompanying proxy will vote the Shares represented thereby (a) for the election of the five persons named under the caption “Election of Trustees” as nominees for Trustees of the Trust, (b) for adoption of the Plan of Distribution under Rule 12b-1 of the 1940 Act, and (c) in their discretion with respectannual update to the transactionTrust's Statement of such other business as may properly come before the meetingAdditional Information to be published on or any adjournment thereof. The Board of Trusteesabout March 28, 2016.

Other Business Items
Saturna does not know ofintend to present any items other than the Proposal and is not aware that any other matter oritems of business that maywill be brought before the meeting.

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VOTE REQUIRED

Proposal 1. Approval of Proposal 1 requires the affirmative vote of a plurality of the Shares of the entire Trust voted in person or by proxypresented at the Meeting.

Proposal 2. (Growth Fund, International Fund, Bond Income Fund, and Short-Term Bond Fund only). Each Fund voting on Proposal 2 does so separately. The approval of the Proposal by If, however, other matters are properly presented for a Fund is applicable only to that particular Fund. A Fund’s approval of the Proposal is not dependent on, or affected in any way by, the results of the vote of another Fund. Approval of the Proposal by a Fund requires the “vote of a majority of voting securities” of that Fund, meaning the vote at any meeting of shareowners more than 50% of the outstanding Shares of that Fund.

With respect to Proposal 2, votes to ABSTAIN and broker non-votes will have the same effect as votes cast AGAINST the Proposal.

Each outstanding full Share of each Fund is entitled to one vote, and each outstanding fractional Share is entitled to a proportionate fractional Share of one vote. If Proposal 2 is not approved by the requisite vote of shareowners of a Fund,Meetings, the persons named as proxies may propose one or more adjournmentswill vote on such matters in their sole discretion after considering the best interests of the meeting to permit further solicitation of proxies.Fund and its shareholders.

Questions
If you have any questions regarding the Meeting or need assistance in voting, please contact us at 800-728-8762.

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PROPOSAL 1: NOMINEES FOR ELECTION AS TRUSTEESSaturna Investment Trust
Sustainable Bond Fund

The overall direction and supervision of the Trust is the responsibility of the Board, which has the primary duty of ensuring that the Trust’s general investment policies and programs are adhered to and that the Trust is properly administered. The officers of the Trust are responsible for the day-to-day administration of the Trust. Saturna Capital, as investment adviser for the Trust, is primarily responsible for providing each portfolio of the Trust with various administrative services and supervising the daily business affairs of each series.

Each of the nominees for Trustee has consented to be named herein and to serve if elected. Should any nominee become unable or unwilling to accept nomination or election, the persons acting under the proxy will vote for the election in the nominee’s stead of such other person as the Board of Trustees may recommend. Each trustee serves for the lifetime of the Trust or until he dies, resigns, is removed, or not re-elected by the shareowners. Each officer serves a one-year term subject to annual reappointment by the Trustees.

The following table provides important information about the Trustees/Nominees and the officers of the Trust.

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*Holds the same position with Amana Mutual Funds Trust.

1/ Valuations of share holdings are computed as of May 31, 2006

2/   Mr. Kaiser is an “interested person” of the Trust, as defined in the Investment Company Act of 1940, by reason of his positions with the Trust’s adviser and distributor. He is also portfolio manager of the Growth Fund and the International Fund. See “Additional Information Concerning the Investment Adviser.”

3/   Each Trustee oversees or will oversee the five portfolios of the Trust. In addition, Mr. Kaiser oversees two portfolios of Amana Mutual Funds Trust.

4/ Mr. McIlvaine is the primary portfolio manager of the Bond Income Fund, Sextant Short-Term Bond Fund and the Idaho Tax-Exempt Fund.

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The following table provides important information about the shareholdings of the Trustees/Nominees, and the officers of the Trust.

* Signifies less than 1% ownership

On May 31, 2006, the trustees, officers and their related accounts as a group owned 23.64%, 22.81%, 36.97%, 50.34%, 0.05% of the outstanding shares of the Bond Income, Short-Term Bond, Growth, International, and Idaho Tax-Exempt Funds, respectively.

The Trust’s Statement of Additional Information, available without charge by calling Saturna Capital at 800-SATURNA, includes additional information about the trustees.

If elected, the Trustees will hold office without limit in time except that (a) any Trustee may resign; (b) a Trustee may be removed with or without cause by 2/3 vote of the Board or by the shareowners holding

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2/3 of the outstanding Shares of the Trust, in either case at a meeting expressly called for the purpose; (c) Trustees reaching age 78 retire by board policy. In case a vacancy shall for any reason exist, the remaining Trustees will fill such vacancy by appointing another Trustee, so long as, immediately after such appointment, at least two-thirds of the Trustees have been elected by shareowners.

There are no arrangements known to the Trust the operation of which may at a subsequent date result in a change in control of the Trust.

During the fiscal year ended November 30, 2005, the Board of Trustees held four regularly scheduled meetings. All trustees who were members of the Board throughout the fiscal year, and who are proposed for re-election to the Board, attended all meetings. (Prof. Grubel joined the Board after the end of the fiscal year.) It is expected that the Trustees will meet at least four times a year at regularly scheduled meetings. The Trustees have established certain Governance Policies and Procedures to enhance the independence and effectiveness of the Independent Trustees and to assist them in furthering their roles.

The Board has a standing Audit Committee that has adopted a written charter (a copy of which is attached to this Proxy Statement). The Board’s Audit Committee is composed of the Independent Trustees, and has a financial expert, Mr. John Moore, an Independent Trustee.

The purpose of the Audit Committee is to:

1) Monitor and oversee the Trust’s accounting and financial reporting policies and practices, its internal controls and, as appropriate, the internal controls of the Trust’s service providers;
2) To monitor and oversee the quality and objectivity of the Trust’s financial statements and its independent audit;
3) To act as a liaison between the Trust’s external auditors and the full Board;
4) To review and report to the full Board on regulatory and compliance matters relating to the Trust and its investment portfolios; and
5) Review and establish the fees of the independent accountants, and other matters.

During the fiscal year ended November 30, 2005, the audit committee held one meeting.
The Independent Trustees function as the nominating committee, although the Board has not established a formal nominating committee as such, and has not adopted a nominating committee charter. The Independent Trustees will consider nominations furnished by shareowners. Nominations (or any other communication directed to the Board or any Trustee) may be sent directly to the Trustee, or to the Secretary of the Trust, c/o Saturna Capital Corporation, 1300 N. State Street, Bellingham, WA 98225.

The Trust does not have a compensation committee.

Effective December 2005, the Trust pays disinterested trustees $300 per meeting attended, plus reimbursement of travel expenses (pro-rata to each Fund of the Trust). Mr. Kaiser receives no compensation from the Trust, nor are the other officers of the Trust paid for their duties with the Trust; except that Mr. Winship has been retained by the Trust as Chief Compliance Officer, for which he is compensated.

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The following table provides the total compensation paid trustees for the fiscal year ended November 30, 2005.

Nicholas F. Kaiser, Trustee and President who is an “interested person” of the Trust, receives compensation as an officer of Saturna Capital or its affiliated companies, but does not receive any director’s fees or other compensation from the Trust for his services as Trustee.

THE BOARD UNANIMOUSLY RECOMMENDS THAT
SHAREOWNERS VOTE “FOR” PROPOSAL 1
_______________________________________________________

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PROPOSAL 2: TO APPROVE THE ADOPTION OFAPPENDIX A PLAN OF DISTRIBUTION PURSUANT TO RULE 12b-1 UNDER THE INVESTMENT COMPANY ACT OF 1940

The Board of Trustees has approved, and recommends that shareowners of eachPrincipal Shareowners Owning More Than 5% of the Growth Fund International Fund, Bond Income Fund and Short-Term Bond Fund (but not Idaho Tax-Exempt Fund) approve a Distribution Plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (the “Plan”) for each of those Funds. (All references to “Fund” or “Funds” in this discussion of Proposal 2 refer only to the Funds that are voting with respect to this Proposal.) A copy of the Plan is attached to this Proxy Statement as Exhibit A.

The Plan. The Plan was approved by the Board on June 28, 2006 as provided for by Rule 12b-1 (the “Rule”) promulgated by the SEC under the 1940 Act. The Rule provides that, an investment company (i.e. a mutual fund) acting as a distributor of its Shares must do so pursuant to a written Plan “describing all material aspects of the proposed financing of distribution.” Under the Rule, an investment company is deemed to be acting as a distributor of its Shares if it engages “directly or indirectly in financing any activity which is primarily intended to result in the sale of Shares issued by such company, including, but not necessarily limited to, advertising, compensation of underwriters, dealers, and sales personnel, the printing and mailing of prospectuses to other than current shareowners, and the printing and mailing of sales literature.”

Since the Trust’s inception, distribution expenses of each of the Funds have been paid by the Adviser. The Trust has entered into a distribution agreement (“Distribution Agreement”) with Saturna Brokerage Services (“Distributor”), a broker-dealer registered under the Securities Exchange Act of 1934, pursuant to which the Distributor will act as principal underwriter of Shares of the Funds for sale to the public. Since the Trust’s inception, the Distributor has provided distribution and shareowner services for the Funds without compensation. The Distributor is a member of the National Association of Securities Dealers and a wholly-owned subsidiary of Saturna Capital Corporation. All employees of the Distributor are also employees of Saturna Capital Corporation.

The SEC has neither approved nor disapproved the Plan.

The Plan contemplates that each of the Funds shall pay the Distributor, a monthly fee at the annual rate of 0.25% of the average daily net assets of each Fund (“Distribution Fee”). Distributor may use all or any portion of the Distribution Fee for activities that the Distributor determines to be reasonably calculated to result in sales of Shares. Such activities may include, but neither are required to include nor are limited to, compensation to the Distributor or such other underwriters, dealers, brokers, banks and other selling or servicing entities and sales, marketing and servicing personnel of any of them that have entered into agreements with the Distributor for the marketing and sale of Shares or the provision of shareowner services; payments for producing, printing and disseminating sales materials, prospectuses, statements of additional information and reports to other than existing shareowners; the Distributor’s expenses, including overhead, telephone and other communication expenses; costs of transmitting communications to shareowners, costs of answering shareowner inquiries; expenses incurred in processing shareowner transactions; payments for providing such other information and services as shareowners reasonably may request; and payments for such other similar services that Distributor determines are reasonably calculated to result in sales of Shares.

EACH VOTING FUND PAYS, AND WILL CONTINUE TO PAY, AN ADVISORY FEE TO THE ADVISER PURSUANT TO A SEPARATE INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES AGREEMENT.

The Plan does not require the Distributor to perform any specific type or level of distribution activities or to incur any specific level of expenses for activities primarily intended to result in the sale of Shares.

The Plan specifically recognizes that the Adviser may use its advisory fee revenue, as well as its past

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profits or its resources from any other source, to make payment to the Distributor with respect to any expenses incurred in connection with the distribution of Shares, including the activities referred to above. To the extent that the payment of advisory fees by a Fund to the Adviser should be deemed to be indirect financing of any activity primarily intended to result in the sale of Shares within the meaning of Rule 12b-1, such payment shall be deemed to be authorized by this Plan.

The Plan contains a number of provisions relating to reporting obligations and to its amendment and termination as required by the Rule. If approved by the shareowners of a Fund, the Plan will continue in effect with respect to that Fund as long as its continuance is specifically approved at least annually by a majority of the Board of Trustees, as well as a majority of the Trustees who are not “interested persons’’ of the Trust within the meaning of Section 2(a)(19) of the 1940 Act, and who have no direct or indirect financial interest in the operation of the Plan or any agreement related to the Plan (the “Disinterested Trustees”), cast in person at a meeting called for the purpose of voting on the Plan.

The Plan may be amended at any time by the Trustees, except that it may not be amended to increase materially the Distribution Fee for a Fund unless such amendment is approved by the vote of a majority of the outstanding Shares of that Fund (as defined in the 40 Act). All material amendments to the Plan must be approved by a majority of the non-interested Trustees.

The Plan may be terminated with respect to a Fund by the vote of a majority of the Disinterested Trustees or by majority vote of the outstanding Shares of that Fund as defined in the 1940 Act.

The Plan requires that the Trust’s Principal Financial Officer or Treasurer, or such other person authorized to direct the disposition of monies paid or payable by the Trust, provide to the Trustees, and that the Trustees review, at least quarterly, a written report of the amounts expended with respect to each Fund, during the quarter under the Plan, and the purposes for which such expenditures were made. As required by the Rule, while the Plan is in effect, the Board must satisfy the fund governance standards as defined in Rule 270.0-1(a)(7).

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ANNUAL FUND OPERATING EXPENSES

Based on the fiscal year ended November 30, 2005, the table below sets out the fees paid by each of the Funds and the fees that will be paid if the Plan of Distribution is approved: