UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04032
Sit Money Market Fund, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: March 31, 2006
Date of reporting period: March 31, 2006
Item 1: Reports to Stockholders
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04995
Sit U.S. Government Securities Fund, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: March 31, 2006
Date of reporting period: March 31, 2006
Item 1: Reports to Stockholders
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04033
Sit Mutual Funds II, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: March 31, 2006
Date of reporting period: March 31, 2006
Item 1: Reports to Stockholders
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21447
Sit Mutual Funds Trust
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: March 31, 2006
Date of reporting period: March 31, 2006
Item 1: Reports to Stockholders
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Sit Mutual Funds
Bond Funds
Annual Report
March 31, 2006
Money Market Fund
U.S. Government Securities Fund
Tax-Free Income Fund
Minnesota Tax-Free Income Fund
Florida Tax-Free Income Fund
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Sit Mutual Funds |
BOND FUNDS ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments | ||||
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This document must be preceded or accompanied by a Prospectus.
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| Sit Mutual Funds |
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| One Year Ended March 31, 2006 |
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Dear fellow shareholders:
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With best wishes,
Eugene C. Sit, CFA
Chairman and Chief Investment Officer
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| Sit Mutual Funds |
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| One Year Ended March 31, 2006 |
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SIT FIXED-INCOME FUNDS |
| Month* |
| Month* |
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U.S. Government Securities SNGVX |
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| 0.09 | % |
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| 0.64 | % |
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Lehman Inter. Govt. Bond Index |
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| -0.30 |
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| 0.29 |
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Tax-Free Income SNTIX |
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| 0.36 |
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| 1.21 |
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Lehman 5-Year Municipal Bond Index |
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| 0.02 |
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| 0.32 |
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Minnesota Tax-Free Income SMTFX |
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| 0.61 |
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| 1.63 |
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Lehman 5-Year Municipal Bond Index |
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| 0.02 |
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| 0.32 |
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Florida Tax-Free Income SFLIX |
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| 0.68 |
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| 1.52 |
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Lehman 5-Year Municipal Bond Index |
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| 0.02 |
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| 0.32 |
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SIT MONEY MARKET FUND |
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Money Market Fund(1) SNIXX |
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| 1.00 | % |
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| 1.88 | % |
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3-Month Treasury Bill |
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| 1.13 |
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| 2.12 |
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*3-month and 6-month returns not annualized. |
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| 1996 |
| 1997 |
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U.S. Government Securities |
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| 4.99 | % |
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| 8.19 | % |
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Lehman Inter. Govt. Bond Index |
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| 4.06 |
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| 7.72 |
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Tax-Free Income |
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| 5.69 |
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| 9.87 |
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Lehman 5-Year Municipal Bond Index |
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| 4.22 |
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| 6.38 |
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Minnesota Tax-Free Income |
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| 5.89 |
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| 8.19 |
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Lehman 5-Year Municipal Bond Index |
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| 4.22 |
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| 6.38 |
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Florida Tax-Free Income |
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Lehman 5-Year Municipal Bond Index |
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Money Market Fund |
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| 5.08 | % |
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| 5.22 | % |
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3-Month Treasury Bill |
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| 5.27 |
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| 5.32 |
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(1) | Converted from Sit Investment Reserve Fund to Sit Money Market Fund on 11/1/93 |
(2) | Based on the last 12 monthly distributions of net investment income and average NAV as of 3/31/06. |
(3) | For individuals in the 25%, 28%, 33% and 35% federal tax brackets, the federal tax equivalent yields are 5.80%, 6.04%, 6.49% and 6.69%, respectively. (Income subject to state tax, if any.) |
(4) | For Minnesota residents in the 25%, 28%, 33% and 35% federal tax brackets, the double exempt tax equivalent yields are 6.31%, 6.57%, 7.06% and 7.28%, respectively. (Assumes the maximum Minnesota tax bracket of 7.85%.) |
(5) | For individuals in the 25%, 28%, 33% and 35% federal tax brackets, the tax equivalent yields are 5.59%, 5.82%, 6.25% and 6.45%, respectively. (Income subject to state tax, if any.) |
(6) | The yield quotation more closely reflects the current earnings of the Money Market Fund than the total return quotation which refers to a specific past holding period. |
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AVERAGE ANNUAL RETURNS FOR PERIODS ENDED MARCH 31, 2006 |
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One |
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| Inception |
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Year |
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| Inception |
| Date |
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2.45 | % |
| 2.19 | % |
| 3.72 | % |
| 5.09 | % |
| 6.66 | % |
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2.07 |
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| 1.69 |
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| 4.14 |
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| 5.54 |
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| 6.82 |
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3.35 |
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| 3.26 |
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| 3.94 |
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| 4.80 |
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| 5.96 |
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| 9/29/88 |
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2.14 |
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| 2.22 |
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| 4.04 |
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| 4.78 |
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| 5.86 |
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4.46 |
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| 4.79 |
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| 5.00 |
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| 5.18 |
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2.14 |
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| 2.22 |
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| 4.04 |
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| 4.78 |
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| 4.81 |
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3.55 |
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| 2.88 |
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| 12/31/03 |
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2.14 |
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| 1.64 |
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3.28 | % |
| 1.70 | % |
| 1.77 | % |
| 3.51 | % |
| 3.72 | % |
| 11/1/93 |
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3.76 |
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| 2.18 |
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| 2.14 |
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| 3.72 |
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| 3.97 |
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AS OF 3/31/06 | |||
30-Day | Distribution | ||
SEC Yield | Rate(2) | ||
4.95 | % | 4.04 | % |
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4.35 | (3) | 3.81 |
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4.36 | (4) | 4.08 |
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4.19 | (5) | 3.30 |
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| 7-Day | ||
7-Day | Effective | ||
Yield(6) | Yield(6) | ||
4.22 | % | 4.31 | % |
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TOTAL RETURN BY CALENDAR YEAR | |||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | YTD | |||||||||
6.52 | % | 1.37 | % | 9.15 | % | 8.56 | % | 5.79 | % | 1.19 | % | 3.35 | % | 2.49 | % | 0.09 | % |
8.49 |
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| 10.47 |
| 8.42 |
| 9.64 |
| 2.29 |
| 2.33 |
| 1.68 |
| -0.30 |
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6.29 |
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| 8.32 |
| 5.84 |
| 5.69 |
| 2.87 |
| 3.96 |
| 3.30 |
| 0.36 |
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5.84 |
| 0.74 |
| 7.72 |
| 6.21 |
| 9.27 |
| 4.13 |
| 2.72 |
| 0.95 |
| 0.02 |
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6.14 |
| -3.82 |
| 8.09 |
| 5.85 |
| 7.06 |
| 4.42 |
| 3.68 |
| 4.44 |
| 0.61 |
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5.84 |
| 0.74 |
| 7.72 |
| 6.21 |
| 9.27 |
| 4.13 |
| 2.72 |
| 0.95 |
| 0.02 |
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| 2.58 |
| 3.22 |
| 0.68 |
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— |
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| 2.72 |
| 0.95 |
| 0.02 |
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5.17 | % | 4.79 | % | 6.03 | % | 3.67 | % | 1.25 | % | 0.65 | % | 0.88 | % | 2.77 | % | 1.00 | % |
5.01 |
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| 6.16 |
| 3.50 |
| 1.67 |
| 1.03 |
| 1.41 |
| 3.26 |
| 1.13 |
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| Sit Mutual Funds |
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| Average Annual Total Returns for Periods Ended December 31, 2005 |
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The tables on the next page show the Funds’ average annual total returns (before and after taxes) and the change in value of a broad-based market index over various periods ended December 31, 2005. The index information is intended to permit you to compare each Fund’s performance to a broad measure of market performance. The after-tax returns are intended to show the impact of federal income taxes on an investment in a Fund. The highest individual federal marginal income tax rate in effect during the specified period is assumed, and the state and local tax impact is not reflected.
A Fund’s “Return After Taxes on Distributions” shows the effect of taxable distributions (dividends and capital gain distributions), but assumes that you still hold the Fund shares at the end of the period and so do not have any taxable gain or loss on your investment in the Fund.
A Fund’s “Return After Taxes on Distributions and Sale of Fund Shares” shows the effect of both taxable distributions and any taxable gain or loss that would be realized if the Fund shares were purchased at the beginning and sold at the end of the specified period.
The Funds’ past performance, before and after taxes, is not an indication of how the Funds will perform in the future. Your actual after-tax returns depend on your own tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future tax effects. After-tax returns are not relevant to investors who hold their Fund shares in a tax-deferred account (including a 401(k) or IRA account).
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Sit U. S. Government Securities Fund |
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| 5 Years |
| 10 Years | |||||
Return Before Taxes |
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| 2.5 | % |
| 4.3 | % |
| 5.1 | % | ||
Return After Taxes on Distributions |
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| 1.1 | % |
| 2.7 | % |
| 3.1 | % | ||
Return After Taxes on Distributions and Sale of Fund Shares |
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| 1.3 | % |
| 2.7 | % |
| 3.1 | % | ||
Lehman Intermediate Government Bond Index |
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| 1.7 | % |
| 4.8 | % |
| 5.5 | % | ||
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Sit Tax-Free Income Fund |
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| 1 Year |
| 5 Years |
| 10 Years | |||||
Return Before Taxes |
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| 3.3 | % |
| 4.3 | % |
| 4.7 | % | ||
Return After Taxes on Distributions |
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| 3.3 | % |
| 4.3 | % |
| 4.7 | % | ||
Return After Taxes on Distributions and Sale of Fund Shares |
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| 3.4 | % |
| 4.3 | % |
| 4.7 | % | ||
Lehman 5-Year Municipal Bond Index |
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| 1.0 | % |
| 4.6 | % |
| 4.8 | % | ||
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Sit Minnesota Tax-Free Income Fund |
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| 1 Year |
| 5 Years |
| 10 Years | |||||
Return Before Taxes |
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| 4.4 | % |
| 5.1 | % |
| 4.9 | % | ||
Return After Taxes on Distributions |
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| 4.4 | % |
| 5.1 | % |
| 4.9 | % | ||
Return After Taxes on Distributions and Sale of Fund Shares |
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| 4.4 | % |
| 5.0 | % |
| 5.0 | % | ||
Lehman 5-Year Municipal Bond Index |
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| 1.0 | % |
| 4.6 | % |
| 4.8 | % | ||
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Sit Florida Tax-Free Income Fund |
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| 1 Year |
| 5 Years |
| Since Inception* | |||||
Return Before Taxes |
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| 3.2 | % |
| n/a |
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| 2.9 | % | ||
Return After Taxes on Distributions |
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| 3.2 | % |
| n/a |
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| 2.9 | % | ||
Return After Taxes on Distributions and Sale of Fund Shares |
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| 3.2 | % |
| n/a |
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| 2.9 | % | ||
Lehman 5-Year Municipal Bond Index |
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| 1.0 | % |
| n/a |
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| 1.8 | % | ||
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7
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| One Year Ended March 31, 2006 |
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| Michael C. Brilley, Senior Portfolio Manager |
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INVESTMENT OBJECTIVE AND STRATEGY |
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PORTFOLIO SUMMARY |
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Net Asset Value 3/31/06: |
| $1.00 Per Share |
3/31/05: |
| $1.00 Per Share |
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Total Net Assets: |
| $69.7 Million |
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PORTFOLIO STRUCTURE |
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AVERAGE ANNUAL TOTAL RETURNS* |
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| 3-Month |
| Lipper |
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3 Month** |
| 1.00 | % |
| 1.13 | % |
| 0.96 | % |
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6 Month** |
| 1.88 |
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| 2.12 |
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| n/a |
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1 Year |
| 3.28 |
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| 3.76 |
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| 3.18 |
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5 Years |
| 1.77 |
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| 2.14 |
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| 1.75 |
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10 Years |
| 3.51 |
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| 3.72 |
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| 3.46 |
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Inception |
| 3.72 |
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| 3.97 |
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| 3.67 |
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(11/1/93) |
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CUMULATIVE TOTAL RETURNS* | ||||||||||||
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| Sit Money |
| 3-Month |
| Lipper |
| |||||
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
| 3.28 | % |
| 3.76 | % |
| 3.18 | % |
| ||
5 Year |
| 9.17 |
|
| 11.18 |
|
| 9.08 |
|
| ||
10 Year |
| 41.15 |
|
| 44.07 |
|
| 40.58 |
|
| ||
Inception |
| 57.40 |
|
| 62.15 |
|
| 56.52 |
|
| ||
(11/1/93) |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
*As of 3/31/06 | **Not annualized. |
| ||||||||||
|
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (11/1/93) and held until 3/31/06 would have grown to $15,740 in the Fund or $16,215 in the 3-Month U.S. Treasury Bill assuming reinvestment of all dividends and capital gains.
|
SIT MONEY MARKET MATURITY RANGES |
9
|
|
|
|
|
| Sit Money Market Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Commercial Paper (97.3%) (2) |
|
|
| ||
|
|
|
|
|
|
Asset-Backed (18.0%) |
|
|
| ||
|
| Daimler-Chrysler Auto Conduit: |
|
|
|
1,350,000 |
| 4.64%, 4/10/2006 |
| 1,348,434 |
|
1,450,000 |
| 4.65%, 4/20/2006 |
| 1,446,441 |
|
3,400,000 |
| FCAR Owner Trust Series I, |
|
|
|
|
| 4.67%, 5/2/2006 |
| 3,386,327 |
|
3,000,000 |
| Mortgage Interest Networking Trust, |
|
|
|
|
| 4.76%, 4/12/2006 |
| 2,995,637 |
|
|
| New Center Asset Trust: |
|
|
|
1,100,000 |
| 4.65%, 4/6/2006 |
| 1,099,290 |
|
2,300,000 |
| 4.60%, 4/21/2006 |
| 2,294,122 |
|
|
|
|
|
| |
|
|
|
| 12,570,251 |
|
|
|
|
|
| |
Captive Auto Finance (4.9%) |
|
|
| ||
3,400,000 |
| Toyota Motor Credit Corp., |
|
|
|
|
| 4.55%, 4/12/2006 |
| 3,395,273 |
|
|
|
|
|
| |
|
|
|
|
|
|
Captive Equipment Finance (8.3%) |
|
|
| ||
|
| Caterpillar Financial Services Corp.: |
|
|
|
2,000,000 |
| 4.48%, 4/4/2006 |
| 1,999,253 |
|
823,000 |
| 4.75%, 4/11/2006 |
| 821,914 |
|
3,000,000 |
| IBM Credit Corp., |
|
|
|
|
| 4.70%, 4/26/2006 |
| 2,990,208 |
|
|
|
|
|
| |
|
|
|
| 5,811,375 |
|
|
|
|
|
| |
Communications (4.9%) |
|
|
| ||
3,400,000 |
| Bellsouth Corp., |
|
|
|
|
| 4.50%, 4/3/2006 |
| 3,399,150 |
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer Durables (4.9%) |
|
|
| ||
|
| American Honda Finance: |
|
|
|
1,000,000 |
| 4.51%, 4/10/2006 |
| 998,873 |
|
600,000 |
| 4.53%, 4/10/2006 |
| 599,321 |
|
1,800,000 |
| 4.51%, 4/11/2006 |
| 1,797,745 |
|
|
|
|
|
| |
|
|
|
| 3,395,939 |
|
|
|
|
|
| |
Consumer Loan Finance (8.6%) |
|
|
| ||
3,000,000 |
| American Express Credit Corp., |
|
|
|
|
| 4.75%, 5/30/2006 |
| 2,976,646 |
|
3,000,000 |
| American General Financial Corp., |
|
|
|
|
| 4.58%, 4/19/2006 |
| 2,993,130 |
|
|
|
|
|
| |
|
|
|
| 5,969,776 |
|
|
|
|
|
| |
Consumer Non-Durables (9.2%) |
|
|
| ||
3,400,000 |
| Coca Cola Company, |
|
|
|
|
| 4.50%, 4/18/2006 |
| 3,392,775 |
|
|
| Coca Cola Enterprises: |
|
|
|
2,000,000 |
| 4.73%, 4/7/2006 (5) |
| 1,998,423 |
|
1,000,000 |
| 4.73%, 4/21/2006 (5) |
| 997,372 |
|
|
|
|
|
| |
|
|
|
| 6,388,570 |
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
Diversified Finance (13.6%) |
|
| ||
3,400,000 |
| CIT Group Holdings, |
|
|
|
| 4.54%, 4/5/2006 |
| 3,398,285 |
2,700,000 |
| GE Capital Corp., |
|
|
|
| 4.62%, 4/28/2006 |
| 2,690,644 |
3,400,000 |
| GE Capital Services, |
|
|
|
| 4.59%, 4/24/2006 |
| 3,390,030 |
|
|
|
| |
|
|
|
| 9,478,959 |
|
|
|
| |
Energy (4.3%) |
|
| ||
3,000,000 |
| Chevron Texaco Funding Corp., |
|
|
|
| 4.47%, 4/17/2006 |
| 2,994,040 |
|
|
|
| |
|
|
|
|
|
Financial Services (12.9%) |
|
| ||
2,600,000 |
| Citigroup, Inc., |
|
|
|
| 4.60%, 4/20/2006 |
| 2,593,688 |
3,400,000 |
| Deutche Bank Financial, |
|
|
|
| 4.63%, 5/1/2006 |
| 3,386,882 |
|
| UBS Finance Corp.: |
|
|
614,000 |
| 4.74%, 4/13/2006 |
| 613,030 |
2,400,000 |
| 4.76%, 4/28/2006 |
| 2,391,432 |
|
|
|
| |
|
|
|
| 8,985,032 |
|
|
|
| |
Insurance (4.8%) |
|
| ||
|
| American International Group: |
|
|
400,000 |
| 4.50%, 4/7/2006 |
| 399,700 |
3,000,000 |
| 4.72%, 5/16/2006 |
| 2,982,300 |
|
|
|
| |
|
|
|
| 3,382,000 |
|
|
|
| |
Retail Trade (2.9%) |
|
| ||
2,000,000 |
| Wal-Mart Stores Inc., |
|
|
|
| 4.69%, 4/4/2006 |
| 1,999,218 |
|
|
|
| |
|
|
|
|
|
Total Commercial Paper |
| 67,769,583 | ||
|
|
|
| |
(cost: $67,769,583) |
|
| ||
|
|
|
|
|
U.S. Government Securities (3.2%) (2) |
|
| ||
2,209,000 |
| FHLB Discount Note, 4.55%, 4/7/06 |
| 2,207,325 |
|
|
|
| |
(cost: $2,207,325) |
|
| ||
|
|
|
|
|
|
|
|
|
|
Total investments in securities |
|
| ||
(cost: $69,976,908) (6) |
| $69,976,908 | ||
|
|
|
|
10 | See accompanying notes to portfolios of investments on page 58. |
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
11
|
|
|
|
|
|
|
|
| |
| One Year Ended March 31, 2006 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers, Michael C. Brilley and Bryce A. Doty, CFA |
|
|
|
|
|
|
|
|
The Sit U.S. Government Securities Fund returned +2.45% during the fiscal year ending March 31, 2006, compared to the return of the Lehman Intermediate Government Bond Index of +2.07%. The Fund’s 30-day SEC yield was 4.95% and its 12-month distribution rate was 4.04%.
The return for the Fund was most positively influenced by its holdings in mortgage pass-throughs and collateralized mortgage obligations, which provided price stability relative to short-term government bonds, as well as a high level of income. Investments in U.S. Treasury obligations detracted from performance, as that sector in general underperformed the other sectors of the bond market.
Over the last twelve months, the Federal Reserve continued to increase its target short-term lending rate at a consistent and measured pace, due to signs of inflation throughout the economy, to a level of 4.75% on March 28, 2006. We expect short-term borrowing rates will reach between 5% and 5.5% this summer, at which time we expect investors to reduce their expectations for long-term inflation. We expect the high levels of income produced by the Fund’s high coupon mortgage securities will continue to provide a yield advantage as well as continued price stability as interest rates rise, which has consistently been the case since the Fund’s inception. Typically, the Fed will end its cycle of increasing its targeted short-term borrowing rate in response to signs of slowing economic growth. At that time, we expect to increase the Fund’s allocation to shorter maturity U.S. Treasury securities, as investors typically seek out the safety of Treasury investments during periods of potential economic weakness.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the U.S. Government Securities Fund is to provide high current income and safety of principal, which it seeks to attain by investing solely in debt obligations issues, guaranteed or insured by the U.S. government or its agencies or its instrumentalities.
Agency mortgage securities and U.S. Treasury securities will be the principal holdings in the Fund. The mortgage securities that the Fund will purchase consist of pass-through securities including those issued by Government National Mortgage Association (GNMA), Federal National Mortgage Asociation (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC).
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 3/31/06: |
| $10.45 Per Share |
3/31/05: |
| $10.62 Per Share |
Total Net Assets: |
| $234.4 Million |
30-day SEC Yield: |
| 4.95% |
12-Month Distribution Rate: |
| 4.04% |
Average Maturity: |
| 22.8 Years |
Effective Duration: |
| 3.0 Years(1) |
(1) Effective duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1.0%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Effective duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio.
|
PORTFOLIO STRUCTURE |
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||
|
|
|
|
|
|
|
|
|
| |||
|
|
| Sit |
| Lehman |
| Lipper |
|
| |||
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Month** |
| 0.09 | % |
| -0.30 | % |
| -0.81 | % |
| ||
6 Month** |
| 0.64 |
|
| 0.29 |
|
| n/a |
|
| ||
1 Year |
| 2.45 |
|
| 2.07 |
|
| 1.91 |
|
| ||
5 Year |
| 3.72 |
|
| 4.14 |
|
| 4.15 |
|
| ||
10 Year |
| 5.09 |
|
| 5.54 |
|
| 5.34 |
|
| ||
Inception |
| 6.66 |
|
| 6.82 |
|
| 6.40 |
|
| ||
(6/2/87) |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit |
| Lehman |
| Lipper |
| |||||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
| 2.45 | % |
| 2.07 | % |
| 1.91 | % |
| ||
5 Year |
| 20.06 |
|
| 22.46 |
|
| 22.53 |
|
| ||
10 Year |
| 64.26 |
|
| 71.45 |
|
| 68.22 |
|
| ||
Inception |
| 236.99 |
|
| 246.71 |
|
| 221.65 |
|
| ||
(6/2/87) |
|
|
|
|
|
|
|
|
|
| ||
*As of 3/31/06. |
|
| **Not annualized. |
| ||||||||
|
|
|
|
| ||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman Intermediate Government Bond Index. The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds.
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (6/2/87) and held until 3/31/06 would have grown to $33,699 in the Fund or $34,671 in the Lehman Intermediate Government Bond Index assuming reinvestment of all dividends and capital gains.
|
ESTIMATED AVERAGE LIFE PROFILE |
13
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Pass-Through Securities (66.7%) (2) | ||||||||
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 2,030,233 |
| 3.08 | % |
| 5/1/2034 |
| 1,992,857 |
| 57,813 |
| 5.50 | % |
| 8/1/2017 |
| 57,971 |
| 279,798 |
| 6.38 | % |
| 12/1/2026 |
| 283,353 |
| 78,407 |
| 6.38 | % |
| 8/1/2027 |
| 80,012 |
| 132,780 |
| 6.38 | % |
| 12/1/2027 |
| 135,497 |
| 732,180 |
| 6.50 | % |
| 8/1/2029 |
| 746,366 |
| 96,884 |
| 7.00 | % |
| 6/1/2019 |
| 100,162 |
| 81,907 |
| 7.00 | % |
| 1/1/2030 |
| 84,361 |
| 1,640,908 |
| 7.00 | % |
| 10/1/2031 |
| 1,696,000 |
| 1,509,581 |
| 7.00 | % |
| 11/1/2032 |
| 1,556,135 |
| 400,066 |
| 7.38 | % |
| 12/17/2024 |
| 421,976 |
| 91,831 |
| 7.50 | % |
| 10/1/2012 |
| 94,889 |
| 54,292 |
| 7.50 | % |
| 2/1/2017 |
| 57,021 |
| 66,020 |
| 7.50 | % |
| 4/1/2021 |
| 69,186 |
| 186,919 |
| 7.50 | % |
| 1/1/2023 |
| 195,815 |
| 168,851 |
| 7.50 | % |
| 8/1/2023 |
| 176,641 |
| 137,593 |
| 7.50 | % |
| 5/1/2026 |
| 143,727 |
| 549,610 |
| 7.50 | % |
| 1/1/2027 |
| 575,358 |
| 38,640 |
| 7.50 | % |
| 2/1/2027 |
| 40,464 |
| 189,809 |
| 7.50 | % |
| 4/1/2027 |
| 198,765 |
| 1,245,788 |
| 7.50 | % |
| 7/1/2029 |
| 1,301,329 |
| 63,908 |
| 7.50 | % |
| 1/1/2030 |
| 66,788 |
| 209,176 |
| 7.50 | % |
| 3/1/2030 |
| 218,502 |
| 141,142 |
| 7.50 | % |
| 9/1/2030 |
| 147,948 |
| 1,297,466 |
| 7.50 | % |
| 1/1/2031 |
| 1,355,108 |
| 1,639,263 |
| 7.50 | % |
| 10/1/2031 |
| 1,725,296 |
| 212,753 |
| 7.50 | % |
| 2/1/2032 |
| 222,238 |
| 2,988,275 |
| 7.50 | % |
| 4/1/2032 |
| 3,121,502 |
| 1,993,886 |
| 7.50 | % |
| 7/1/2032 |
| 2,083,301 |
| 74,667 |
| 7.95 | % |
| 10/1/2025 |
| 79,539 |
| 85,187 |
| 7.95 | % |
| 10/1/2025 |
| 90,121 |
| 107,687 |
| 7.95 | % |
| 11/1/2025 |
| 114,715 |
| 669,405 |
| 8.00 | % |
| 12/1/2016 |
| 710,300 |
| 42,102 |
| 8.00 | % |
| 5/1/2017 |
| 44,168 |
| 79,257 |
| 8.00 | % |
| 1/1/2021 |
| 83,550 |
| 524,179 |
| 8.00 | % |
| 12/1/2023 |
| 551,666 |
| 354,949 |
| 8.00 | % |
| 9/15/2024 |
| 376,892 |
| 56,432 |
| 8.00 | % |
| 12/1/2026 |
| 60,140 |
| 1,418,468 |
| 8.00 | % |
| 10/17/2027 |
| 1,510,546 |
| 34,486 |
| 8.00 | % |
| 7/1/2028 |
| 36,618 |
| 290,150 |
| 8.00 | % |
| 6/1/2030 |
| 309,775 |
| 25,002 |
| 8.25 | % |
| 12/1/2008 |
| 25,298 |
| 51,085 |
| 8.25 | % |
| 12/1/2017 |
| 54,211 |
| 285,371 |
| 8.50 | % |
| 1/1/2016 |
| 301,379 |
| 605,994 |
| 8.50 | % |
| 5/1/2016 |
| 640,866 |
| 6,498 |
| 8.50 | % |
| 1/1/2017 |
| 6,937 |
| 35,337 |
| 8.50 | % |
| 2/1/2017 |
| 37,640 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 29,441 |
| 8.50 | % |
| 3/1/2017 |
| 31,430 |
| 80,042 |
| 8.50 | % |
| 4/1/2017 |
| 85,034 |
| 81,383 |
| 8.50 | % |
| 5/1/2017 |
| 86,881 |
| 27,840 |
| 8.50 | % |
| 5/1/2017 |
| 29,721 |
| 104,876 |
| 8.50 | % |
| 10/1/2019 |
| 112,528 |
| 40,557 |
| 8.50 | % |
| 7/1/2021 |
| 43,516 |
| 172,906 |
| 8.50 | % |
| 8/1/2023 |
| 184,603 |
| 21,035 |
| 8.50 | % |
| 7/1/2024 |
| 22,626 |
| 91,690 |
| 8.50 | % |
| 1/1/2025 |
| 98,581 |
| 127,477 |
| 8.50 | % |
| 4/1/2025 |
| 137,057 |
| 38,211 |
| 8.50 | % |
| 6/1/2025 |
| 41,082 |
| 42,322 |
| 8.50 | % |
| 10/1/2026 |
| 45,584 |
| 541,124 |
| 8.50 | % |
| 12/1/2029 |
| 581,790 |
| 347,221 |
| 8.50 | % |
| 8/1/2030 |
| 373,747 |
| 11,279 |
| 8.50 | % |
| 12/1/2030 |
| 12,149 |
| 658,467 |
| 8.50 | % |
| 2/1/2031 |
| 707,951 |
| 45,713 |
| 8.50 | % |
| 4/1/2031 |
| 49,206 |
| 17,401 |
| 8.50 | % |
| 8/1/2031 |
| 18,730 |
| 29,965 |
| 8.75 | % |
| 1/1/2017 |
| 31,547 |
| 13,663 |
| 9.00 | % |
| 5/1/2009 |
| 14,004 |
| 6,070 |
| 9.00 | % |
| 6/1/2009 |
| 6,598 |
| 22,234 |
| 9.00 | % |
| 7/1/2009 |
| 22,917 |
| 21,434 |
| 9.00 | % |
| 7/1/2009 |
| 21,969 |
| 1,829 |
| 9.00 | % |
| 8/1/2009 |
| 1,885 |
| 69,200 |
| 9.00 | % |
| 12/1/2009 |
| 70,927 |
| 13,689 |
| 9.00 | % |
| 9/1/2010 |
| 13,934 |
| 16,447 |
| 9.00 | % |
| 10/1/2013 |
| 17,585 |
| 157,564 |
| 9.00 | % |
| 11/1/2015 |
| 169,734 |
| 11,547 |
| 9.00 | % |
| 5/1/2016 |
| 12,442 |
| 282,494 |
| 9.00 | % |
| 5/1/2016 |
| 304,313 |
| 96,593 |
| 9.00 | % |
| 7/1/2016 |
| 104,080 |
| 80,601 |
| 9.00 | % |
| 10/1/2016 |
| 85,758 |
| 21,431 |
| 9.00 | % |
| 11/1/2016 |
| 23,092 |
| 3,467 |
| 9.00 | % |
| 1/1/2017 |
| 3,736 |
| 15,158 |
| 9.00 | % |
| 1/1/2017 |
| 16,213 |
| 45,582 |
| 9.00 | % |
| 2/1/2017 |
| 47,159 |
| 167,735 |
| 9.00 | % |
| 2/1/2017 |
| 180,736 |
| 52,734 |
| 9.00 | % |
| 4/1/2017 |
| 53,018 |
| 786,094 |
| 9.00 | % |
| 4/1/2017 |
| 845,373 |
| 29,117 |
| 9.00 | % |
| 6/1/2017 |
| 31,143 |
| 35,130 |
| 9.00 | % |
| 6/1/2017 |
| 37,953 |
| 7,653 |
| 9.00 | % |
| 9/1/2017 |
| 8,268 |
| 90,687 |
| 9.00 | % |
| 10/1/2017 |
| 97,973 |
| 56,145 |
| 9.00 | % |
| 6/1/2018 |
| 60,030 |
| 257,327 |
| 9.00 | % |
| 6/1/2019 |
| 276,732 |
| 169,070 |
| 9.00 | % |
| 6/1/2019 |
| 181,819 |
| 95,076 |
| 9.00 | % |
| 10/1/2019 |
| 103,150 |
| 85,464 |
| 9.00 | % |
| 10/1/2019 |
| 92,723 |
| 325,364 |
| 9.00 | % |
| 10/1/2019 |
| 351,506 |
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 385,305 |
| 9.00 | % |
| 6/1/2021 |
| 404,469 |
| 26,041 |
| 9.00 | % |
| 7/1/2021 |
| 28,367 |
| 46,879 |
| 9.00 | % |
| 10/1/2021 |
| 49,062 |
| 238,861 |
| 9.00 | % |
| 11/1/2025 |
| 260,973 |
| 4,541,819 |
| 9.00 | % |
| 5/1/2031 |
| 4,947,347 |
| 7,330 |
| 9.25 | % |
| 7/1/2008 |
| 7,562 |
| 19,489 |
| 9.25 | % |
| 8/1/2008 |
| 20,105 |
| 10,795 |
| 9.25 | % |
| 8/1/2009 |
| 11,038 |
| 50,614 |
| 9.25 | % |
| 7/1/2010 |
| 50,914 |
| 21,676 |
| 9.25 | % |
| 3/1/2011 |
| 22,090 |
| 40,901 |
| 9.25 | % |
| 6/1/2016 |
| 44,378 |
| 20,020 |
| 9.25 | % |
| 3/1/2017 |
| 21,722 |
| 325,416 |
| 9.25 | % |
| 2/1/2018 |
| 344,918 |
| 13,221 |
| 9.25 | % |
| 1/1/2019 |
| 13,473 |
| 90,496 |
| 9.25 | % |
| 3/1/2019 |
| 96,527 |
| 144,925 |
| 9.25 | % |
| 3/1/2019 |
| 151,479 |
| 28,080 |
| 9.50 | % |
| 10/1/2008 |
| 29,039 |
| 50,900 |
| 9.50 | % |
| 2/1/2010 |
| 52,542 |
| 13,233 |
| 9.50 | % |
| 5/1/2010 |
| 13,910 |
| 16,471 |
| 9.50 | % |
| 6/1/2010 |
| 17,002 |
| 7,588 |
| 9.50 | % |
| 1/1/2011 |
| 8,077 |
| 15,481 |
| 9.50 | % |
| 6/1/2016 |
| 16,894 |
| 8,001 |
| 9.50 | % |
| 7/1/2016 |
| 8,731 |
| 41,399 |
| 9.50 | % |
| 10/1/2016 |
| 45,177 |
| 74,980 |
| 9.50 | % |
| 6/1/2017 |
| 82,072 |
| 48,292 |
| 9.50 | % |
| 4/1/2018 |
| 52,998 |
| 11,206 |
| 9.50 | % |
| 10/1/2018 |
| 12,266 |
| 357,147 |
| 9.50 | % |
| 6/17/2019 |
| 387,972 |
| 1,381,308 |
| 9.50 | % |
| 12/17/2021 |
| 1,505,973 |
| 29,478 |
| 9.75 | % |
| 12/1/2008 |
| 30,562 |
| 9,377 |
| 9.75 | % |
| 12/1/2008 |
| 9,722 |
| 39,643 |
| 9.75 | % |
| 11/1/2009 |
| 41,101 |
| 13,654 |
| 9.75 | % |
| 6/1/2011 |
| 14,156 |
| 234,085 |
| 9.75 | % |
| 12/1/2016 |
| 249,975 |
| 42,616 |
| 9.75 | % |
| 6/1/2017 |
| 46,332 |
| 246,421 |
| 9.75 | % |
| 12/1/2017 |
| 266,707 |
| 14,930 |
| 9.85 | % |
| 5/1/2016 |
| 16,227 |
| 48,578 |
| 10.00 | % |
| 11/1/2010 |
| 50,486 |
| 52,832 |
| 10.00 | % |
| 11/1/2011 |
| 58,065 |
| 202,049 |
| 10.00 | % |
| 9/1/2020 |
| 221,808 |
| 17,643 |
| 10.25 | % |
| 6/1/2010 |
| 18,631 |
| 34,945 |
| 10.25 | % |
| 2/1/2017 |
| 36,903 |
| 55,761 |
| 10.29 | % |
| 9/1/2016 |
| 59,407 |
| 59,569 |
| 10.50 | % |
| 10/1/2013 |
| 64,662 |
| 102,307 |
| 10.50 | % |
| 5/1/2014 |
| 108,375 |
| 27,815 |
| 10.50 | % |
| 9/1/2015 |
| 30,490 |
| 23,501 |
| 10.50 | % |
| 1/1/2019 |
| 26,052 |
| 407,995 |
| 10.50 | % |
| 6/1/2019 |
| 448,372 |
| 868 |
| 10.50 | % |
| 7/1/2020 |
| 962 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 8,431 |
| 11.00 | % |
| 12/1/2011 |
| 9,173 |
| 40,385 |
| 11.00 | % |
| 6/1/2015 |
| 43,870 |
| 30,673 |
| 11.00 | % |
| 2/1/2016 |
| 33,449 |
| 17,474 |
| 11.00 | % |
| 5/1/2019 |
| 18,811 |
| 23,187 |
| 11.00 | % |
| 7/1/2019 |
| 25,497 |
| 10,449 |
| 11.25 | % |
| 10/1/2009 |
| 11,150 |
| 35,320 |
| 11.25 | % |
| 8/1/2011 |
| 38,247 |
| 22,370 |
| 13.00 | % |
| 5/1/2017 |
| 24,784 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 40,644,515 |
|
|
|
|
|
|
|
| |
|
| |||||||
Federal National Mortgage Association (34.4%): |
| |||||||
| 1,899,742 |
| 4.03 | % |
| 4/1/2033 |
| 1,859,921 |
| 3,988,176 |
| 5.00 | % |
| 11/1/2010 |
| 3,945,335 |
| 77,934 |
| 5.76 | % |
| 3/1/2033 |
| 77,201 |
| 765,188 |
| 6.00 | % |
| 9/1/2017 |
| 777,536 |
| 30,161 |
| 6.49 | % |
| 3/1/2019 |
| 29,660 |
| 90,610 |
| 6.49 | % |
| 2/1/2032 |
| 92,611 |
| 73,511 |
| 6.49 | % |
| 4/1/2032 |
| 75,134 |
| 62,250 |
| 6.91 | % |
| 11/1/2026 |
| 64,394 |
| 192,882 |
| 6.91 | % |
| 8/1/2027 |
| 199,526 |
| 495,244 |
| 6.95 | % |
| 8/1/2021 |
| 501,009 |
| 20,751 |
| 7.00 | % |
| 2/1/2017 |
| 21,449 |
| 231,716 |
| 7.00 | % |
| 7/1/2026 |
| 238,643 |
| 110,521 |
| 7.00 | % |
| 3/1/2027 |
| 114,067 |
| 24,691 |
| 7.00 | % |
| 4/1/2027 |
| 25,706 |
| 429,129 |
| 7.00 | % |
| 5/1/2028 |
| 441,959 |
| 802,115 |
| 7.00 | % |
| 1/1/2029 |
| 826,095 |
| 33,286 |
| 7.00 | % |
| 10/1/2029 |
| 34,330 |
| 2,365,967 |
| 7.00 | % |
| 11/1/2029 |
| 2,440,163 |
| 315,116 |
| 7.00 | % |
| 5/1/2031 |
| 324,870 |
| 63,230 |
| 7.00 | % |
| 9/1/2031 |
| 65,193 |
| 449,318 |
| 7.00 | % |
| 2/1/2032 |
| 462,750 |
| 79,476 |
| 7.00 | % |
| 5/1/2032 |
| 81,873 |
| 423,128 |
| 7.00 | % |
| 6/1/2032 |
| 438,586 |
| 1,673,477 |
| 7.00 | % |
| 6/1/2032 |
| 1,723,942 |
| 59,023 |
| 7.00 | % |
| 7/1/2032 |
| 60,803 |
| 116,415 |
| 7.00 | % |
| 7/1/2032 |
| 119,925 |
| 632,677 |
| 7.00 | % |
| 9/1/2032 |
| 651,755 |
| 254,304 |
| 7.00 | % |
| 10/1/2032 |
| 262,176 |
| 326,860 |
| 7.00 | % |
| 11/1/2032 |
| 336,632 |
| 489,292 |
| 7.00 | % |
| 11/1/2032 |
| 503,920 |
| 679,199 |
| 7.00 | % |
| 4/1/2034 |
| 699,505 |
| 1,341,585 |
| 7.45 | % |
| 6/1/2016 |
| 1,462,454 |
| 492,471 |
| 7.50 | % |
| 11/1/2012 |
| 492,654 |
| 658,830 |
| 7.50 | % |
| 3/1/2016 |
| 690,482 |
| 1,013,198 |
| 7.50 | % |
| 6/1/2022 |
| 1,061,630 |
| 1,566,026 |
| 7.50 | % |
| 10/1/2022 |
| 1,635,844 |
| 18,754 |
| 7.50 | % |
| 7/1/2023 |
| 19,580 |
| 123,973 |
| 7.50 | % |
| 7/1/2023 |
| 129,361 |
|
|
See accompanying notes to portfolios of investments on page 58. | 15 |
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 433,225 |
| 7.50 | % |
| 9/1/2023 |
| 452,539 |
| 1,136,675 |
| 7.50 | % |
| 5/1/2024 |
| 1,187,351 |
| 425,384 |
| 7.50 | % |
| 6/1/2025 |
| 443,598 |
| 4,046 |
| 7.50 | % |
| 3/1/2027 |
| 4,231 |
| 16,456 |
| 7.50 | % |
| 9/1/2027 |
| 17,359 |
| 958,861 |
| 7.50 | % |
| 5/1/2029 |
| 1,001,610 |
| 65,429 |
| 7.50 | % |
| 11/1/2029 |
| 68,343 |
| 31,584 |
| 7.50 | % |
| 1/1/2030 |
| 33,013 |
| 970,001 |
| 7.50 | % |
| 1/1/2031 |
| 1,014,574 |
| 295,773 |
| 7.50 | % |
| 1/1/2031 |
| 308,960 |
| 40,929 |
| 7.50 | % |
| 6/1/2031 |
| 42,781 |
| 235,293 |
| 7.50 | % |
| 3/1/2032 |
| 245,806 |
| 584,002 |
| 7.50 | % |
| 6/1/2032 |
| 612,741 |
| 721,014 |
| 7.50 | % |
| 12/1/2034 |
| 753,159 |
| 1,151,305 |
| 7.87 | % |
| 12/15/2025 |
| 1,217,583 |
| 45,455 |
| 8.00 | % |
| 8/1/2009 |
| 46,576 |
| 272,264 |
| 8.00 | % |
| 4/1/2016 |
| 289,262 |
| 597,903 |
| 8.00 | % |
| 7/1/2021 |
| 637,296 |
| 158,717 |
| 8.00 | % |
| 1/1/2022 |
| 168,213 |
| 115,437 |
| 8.00 | % |
| 5/1/2023 |
| 122,107 |
| 78,451 |
| 8.00 | % |
| 9/1/2023 |
| 83,190 |
| 429,111 |
| 8.00 | % |
| 9/1/2027 |
| 456,999 |
| 711,219 |
| 8.00 | % |
| 5/1/2029 |
| 757,152 |
| 457,391 |
| 8.00 | % |
| 2/1/2031 |
| 486,931 |
| 625,328 |
| 8.00 | % |
| 12/1/2031 |
| 665,714 |
| 1,024,260 |
| 8.00 | % |
| 9/1/2032 |
| 1,090,200 |
| 189,333 |
| 8.00 | % |
| 8/1/2034 |
| 201,561 |
| 53,005 |
| 8.25 | % |
| 4/1/2022 |
| 55,530 |
| 802,266 |
| 8.29 | % |
| 7/20/2030 |
| 860,671 |
| 715,087 |
| 8.33 | % |
| 7/15/2020 |
| 781,525 |
| 346,699 |
| 8.38 | % |
| 7/20/2028 |
| 371,738 |
| 3,464,221 |
| 8.45 | % |
| 5/31/2035 |
| 3,704,830 |
| 1,077 |
| 8.50 | % |
| 8/1/2006 |
| 1,084 |
| 61,911 |
| 8.50 | % |
| 11/1/2010 |
| 63,846 |
| 348,749 |
| 8.50 | % |
| 9/1/2013 |
| 351,002 |
| 669,418 |
| 8.50 | % |
| 2/1/2016 |
| 706,032 |
| 132,467 |
| 8.50 | % |
| 6/1/2017 |
| 133,446 |
| 33,989 |
| 8.50 | % |
| 9/1/2017 |
| 35,773 |
| 136,636 |
| 8.50 | % |
| 8/1/2018 |
| 146,663 |
| 90,360 |
| 8.50 | % |
| 9/1/2021 |
| 95,461 |
| 65,560 |
| 8.50 | % |
| 7/1/2022 |
| 70,696 |
| 19,149 |
| 8.50 | % |
| 5/1/2024 |
| 20,688 |
| 220,856 |
| 8.50 | % |
| 7/1/2026 |
| 237,120 |
| 1,052,685 |
| 8.50 | % |
| 11/1/2026 |
| 1,130,153 |
| 557,085 |
| 8.50 | % |
| 11/1/2028 |
| 598,457 |
| 977,317 |
| 8.50 | % |
| 12/1/2028 |
| 1,049,238 |
| 275,475 |
| 8.50 | % |
| 1/1/2030 |
| 295,188 |
| 64,928 |
| 8.50 | % |
| 11/1/2030 |
| 69,490 |
| 18,483 |
| 8.50 | % |
| 1/1/2031 |
| 19,796 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 392,402 |
| 8.52 | % |
| 9/15/2030 |
| 419,593 |
| 138,066 |
| 8.87 | % |
| 12/15/2025 |
| 151,589 |
| 106,412 |
| 9.00 | % |
| 1/1/2009 |
| 109,802 |
| 20,486 |
| 9.00 | % |
| 5/1/2009 |
| 21,059 |
| 42,069 |
| 9.00 | % |
| 5/1/2009 |
| 42,930 |
| 35,447 |
| 9.00 | % |
| 5/1/2009 |
| 36,439 |
| 60,462 |
| 9.00 | % |
| 3/1/2011 |
| 62,970 |
| 31,718 |
| 9.00 | % |
| 9/1/2017 |
| 34,144 |
| 41,557 |
| 9.00 | % |
| 2/1/2018 |
| 44,735 |
| 23,648 |
| 9.00 | % |
| 10/1/2019 |
| 25,312 |
| 60,808 |
| 9.00 | % |
| 12/15/2019 |
| 64,981 |
| 298,456 |
| 9.00 | % |
| 6/15/2025 |
| 325,690 |
| 67,643 |
| 9.00 | % |
| 5/1/2030 |
| 73,800 |
| 29,741 |
| 9.00 | % |
| 7/1/2031 |
| 32,224 |
| 9,078,599 |
| 9.00 | % |
| 3/1/2032 |
| 9,945,322 |
| 46,068 |
| 9.25 | % |
| 10/1/2009 |
| 47,526 |
| 25,930 |
| 9.25 | % |
| 7/1/2010 |
| 26,996 |
| 2,685 |
| 9.25 | % |
| 4/1/2012 |
| 2,736 |
| 55,261 |
| 9.25 | % |
| 10/1/2016 |
| 59,868 |
| 63,022 |
| 9.25 | % |
| 12/1/2016 |
| 68,276 |
| 137,377 |
| 9.25 | % |
| 2/1/2017 |
| 148,352 |
| 5,027 |
| 9.25 | % |
| 3/1/2017 |
| 5,446 |
| 262,886 |
| 9.34 | % |
| 8/20/2027 |
| 296,808 |
| 55,278 |
| 9.50 | % |
| 12/1/2009 |
| 57,737 |
| 46,273 |
| 9.50 | % |
| 11/1/2018 |
| 51,011 |
| 48,722 |
| 9.50 | % |
| 5/1/2019 |
| 53,833 |
| 74,116 |
| 9.50 | % |
| 10/1/2019 |
| 80,870 |
| 931,244 |
| 9.50 | % |
| 3/1/2020 |
| 1,036,009 |
| 89,546 |
| 9.50 | % |
| 6/1/2020 |
| 98,714 |
| 1,131,157 |
| 9.50 | % |
| 7/1/2020 |
| 1,242,043 |
| 129,258 |
| 9.50 | % |
| 9/1/2020 |
| 141,289 |
| 168,413 |
| 9.50 | % |
| 10/15/2020 |
| 182,728 |
| 163,202 |
| 9.50 | % |
| 12/15/2020 |
| 178,150 |
| 29,883 |
| 9.50 | % |
| 12/15/2020 |
| 32,491 |
| 51,405 |
| 9.50 | % |
| 3/1/2021 | �� | 56,515 |
| 43,449 |
| 9.50 | % |
| 4/15/2021 |
| 47,596 |
| 504,265 |
| 9.50 | % |
| 11/1/2025 |
| 556,489 |
| 376,779 |
| 9.50 | % |
| 5/1/2027 |
| 417,204 |
| 6,167,245 |
| 9.50 | % |
| 8/1/2031 |
| 6,772,406 |
| 1,487,662 |
| 9.55 | % |
| 8/20/2025 |
| 1,617,772 |
| 144,184 |
| 9.75 | % |
| 1/15/2013 |
| 155,055 |
| 120,837 |
| 9.75 | % |
| 1/1/2021 |
| 131,963 |
| 278,579 |
| 9.75 | % |
| 10/1/2021 |
| 306,654 |
| 304,134 |
| 9.75 | % |
| 4/1/2025 |
| 334,785 |
| 58,994 |
| 10.00 | % |
| 5/1/2011 |
| 61,930 |
| 107,474 |
| 10.00 | % |
| 7/1/2013 |
| 114,696 |
| 620,162 |
| 10.00 | % |
| 2/1/2015 |
| 671,567 |
| 824,608 |
| 10.00 | % |
| 3/1/2015 |
| 907,453 |
| 72,851 |
| 10.00 | % |
| 11/1/2016 |
| 79,106 |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 44,119 |
| 10.00 | % |
| 9/1/2019 |
| 48,293 |
| 16,506 |
| 10.00 | % |
| 11/1/2020 |
| 18,220 |
| 36,492 |
| 10.00 | % |
| 1/1/2021 |
| 40,357 |
| 118,801 |
| 10.00 | % |
| 1/1/2024 |
| 130,253 |
| 534,212 |
| 10.00 | % |
| 2/1/2028 |
| 588,812 |
| 3,726,449 |
| 10.00 | % |
| 6/1/2030 |
| 4,079,045 |
| 316,935 |
| 10.18 | % |
| 7/1/2020 |
| 345,321 |
| 302,128 |
| 10.25 | % |
| 8/15/2013 |
| 326,402 |
| 44,158 |
| 10.50 | % |
| 5/1/2015 |
| 46,850 |
| 249,248 |
| 10.50 | % |
| 1/1/2016 |
| 276,380 |
| 74,952 |
| 10.50 | % |
| 12/1/2017 |
| 83,098 |
| 138,814 |
| 10.50 | % |
| 4/1/2022 |
| 150,522 |
| 14,996 |
| 10.75 | % |
| 11/1/2010 |
| 15,665 |
| 5,137 |
| 11.00 | % |
| 4/1/2014 |
| 5,622 |
| 32,463 |
| 11.00 | % |
| 8/1/2015 |
| 34,577 |
| 20,080 |
| 11.00 | % |
| 4/1/2017 |
| 21,528 |
| 405,543 |
| 11.27 | % |
| 8/15/2020 |
| 450,597 |
| 266,252 |
| 11.75 | % |
| 10/20/2022 |
| 298,289 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 80,588,445 |
|
|
|
|
|
|
|
| |
| ||||||||
Government National Mortgage Association (15.0%) (3): | ||||||||
| 422,314 |
| 5.50 | % |
| 9/15/2025 |
| 420,183 |
| 111,787 |
| 5.76 | % |
| 3/20/2033 |
| 111,696 |
| 241,130 |
| 5.76 | % |
| 3/20/2033 |
| 240,932 |
| 83,457 |
| 5.76 | % |
| 3/20/2033 |
| 83,389 |
| 116,870 |
| 5.76 | % |
| 5/20/2033 |
| 116,775 |
| 444,256 |
| 5.76 | % |
| 5/20/2033 |
| 443,892 |
| 109,075 |
| 5.76 | % |
| 6/20/2033 |
| 108,986 |
| 95,463 |
| 5.76 | % |
| 6/20/2033 |
| 95,385 |
| 73,493 |
| 6.00 | % |
| 9/15/2018 |
| 74,299 |
| 83,617 |
| 6.05 | % |
| 3/20/2033 |
| 84,354 |
| 319,186 |
| 6.25 | % |
| 5/15/2013 |
| 326,460 |
| 352,333 |
| 6.25 | % |
| 12/15/2023 |
| 363,581 |
| 262,669 |
| 6.25 | % |
| 1/15/2024 |
| 271,179 |
| 233,763 |
| 6.38 | % |
| 12/15/2027 |
| 241,451 |
| 304,198 |
| 6.38 | % |
| 4/15/2028 |
| 314,350 |
| 164,250 |
| 6.49 | % |
| 9/20/2031 |
| 168,533 |
| 256,435 |
| 6.49 | % |
| 11/20/2031 |
| 263,123 |
| 49,511 |
| 6.49 | % |
| 12/20/2031 |
| 50,803 |
| 261,346 |
| 6.49 | % |
| 4/20/2032 |
| 268,130 |
| 55,892 |
| 6.49 | % |
| 6/20/2032 |
| 57,343 |
| 75,447 |
| 6.49 | % |
| 6/20/2032 |
| 77,405 |
| 89,241 |
| 6.49 | % |
| 12/20/2032 |
| 91,557 |
| 2,234,363 |
| 6.50 | % |
| 5/15/2023 |
| 2,316,196 |
| 40,233 |
| 6.57 | % |
| 9/20/2032 |
| 41,073 |
| 115,973 |
| 6.57 | % |
| 11/20/2032 |
| 118,394 |
| 84,420 |
| 6.57 | % |
| 12/20/2032 |
| 86,183 |
| 66,844 |
| 6.57 | % |
| 1/20/2033 |
| 68,225 |
| 84,982 |
| 6.57 | % |
| 3/20/2033 |
| 86,737 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 95,652 |
| 6.75 | % |
| 9/15/2015 |
| 98,990 |
| 419,244 |
| 6.75 | % |
| 8/15/2028 |
| 433,962 |
| 134,860 |
| 6.75 | % |
| 6/15/2029 |
| 139,579 |
| 225,744 |
| 6.75 | % |
| 6/15/2029 |
| 233,643 |
| 610,903 |
| 6.91 | % |
| 7/20/2026 |
| 630,849 |
| 37,138 |
| 7.00 | % |
| 9/20/2016 |
| 38,182 |
| 506,886 |
| 7.00 | % | �� | 2/15/2028 |
| 528,460 |
| 84,434 |
| 7.00 | % |
| 4/20/2028 |
| 87,360 |
| 1,146,453 |
| 7.00 | % |
| 7/15/2029 |
| 1,195,850 |
| 1,214,853 |
| 7.00 | % |
| 10/15/2032 |
| 1,266,805 |
| 778,555 |
| 7.00 | % |
| 11/15/2032 |
| 811,895 |
| 28,618 |
| 7.05 | % |
| 2/15/2023 |
| 29,763 |
| 136,658 |
| 7.05 | % |
| 9/20/2026 |
| 140,883 |
| 82,503 |
| 7.05 | % |
| 11/20/2026 |
| 85,053 |
| 72,956 |
| 7.05 | % |
| 1/20/2027 |
| 75,160 |
| 194,541 |
| 7.05 | % |
| 4/20/2027 |
| 200,418 |
| 40,985 |
| 7.25 | % |
| 8/15/2010 |
| 42,247 |
| 208,683 |
| 7.25 | % |
| 5/15/2029 |
| 217,553 |
| 66,928 |
| 7.27 | % |
| 7/20/2022 |
| 69,417 |
| 62,257 |
| 7.38 | % |
| 1/15/2029 |
| 65,115 |
| 458,197 |
| 7.38 | % |
| 3/15/2031 |
| 457,014 |
| 5,257 |
| 7.50 | % |
| 3/15/2007 |
| 5,319 |
| 124,745 |
| 7.50 | % |
| 5/15/2016 |
| 131,537 |
| 764,547 |
| 7.50 | % |
| 2/15/2027 |
| 803,396 |
| 71,780 |
| 7.55 | % |
| 7/20/2022 |
| 75,401 |
| 108,620 |
| 7.55 | % |
| 10/20/2022 |
| 114,101 |
| 96,150 |
| 7.63 | % |
| 10/15/2029 |
| 101,787 |
| 104,736 |
| 7.65 | % |
| 10/20/2021 |
| 110,224 |
| 90,781 |
| 7.65 | % |
| 7/20/2022 |
| 95,627 |
| 189,517 |
| 7.75 | % |
| 6/15/2020 |
| 200,719 |
| 195,955 |
| 7.75 | % |
| 7/15/2020 |
| 207,538 |
| 291,082 |
| 7.75 | % |
| 8/15/2020 |
| 308,288 |
| 149,692 |
| 7.75 | % |
| 8/15/2020 |
| 158,540 |
| 109,983 |
| 7.75 | % |
| 11/15/2020 |
| 116,484 |
| 554,331 |
| 7.75 | % |
| 10/15/2022 |
| 593,586 |
| 45,821 |
| 7.90 | % |
| 1/20/2021 |
| 48,555 |
| 36,607 |
| 7.90 | % |
| 1/20/2021 |
| 38,791 |
| 30,544 |
| 7.90 | % |
| 4/20/2021 |
| 32,366 |
| 185,380 |
| 7.95 | % |
| 2/15/2020 |
| 197,396 |
| 65,212 |
| 7.95 | % |
| 5/20/2025 |
| 69,445 |
| 124,100 |
| 7.95 | % |
| 7/20/2025 |
| 132,156 |
| 49,665 |
| 7.95 | % |
| 8/20/2025 |
| 52,889 |
| 171,669 |
| 7.95 | % |
| 9/20/2025 |
| 182,813 |
| 28,336 |
| 7.95 | % |
| 10/20/2025 |
| 30,175 |
| 48,333 |
| 7.95 | % |
| 10/20/2025 |
| 51,471 |
| 78,627 |
| 7.95 | % |
| 10/20/2025 |
| 83,731 |
| 114,865 |
| 7.95 | % |
| 1/20/2026 |
| 122,403 |
| 87,975 |
| 7.95 | % |
| 1/20/2026 |
| 93,747 |
| 123,611 |
| 7.95 | % |
| 4/20/2026 |
| 131,722 |
|
|
See accompanying notes to portfolios of investments on page 58. | 17 |
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 25,539 |
| 7.95 | % |
| 6/20/2026 |
| 27,215 |
| 41,294 |
| 7.95 | % |
| 9/20/2026 |
| 44,003 |
| 33,210 |
| 7.95 | % |
| 9/20/2026 |
| 35,389 |
| 173,189 |
| 7.95 | % |
| 11/20/2026 |
| 184,553 |
| 36,125 |
| 7.95 | % |
| 12/20/2026 |
| 38,495 |
| 70,732 |
| 7.95 | % |
| 2/20/2027 |
| 75,197 |
| 84,262 |
| 7.95 | % |
| 3/20/2027 |
| 89,581 |
| 86,234 |
| 7.99 | % |
| 2/20/2021 |
| 91,604 |
| 62,285 |
| 7.99 | % |
| 4/20/2021 |
| 66,163 |
| 158,877 |
| 7.99 | % |
| 7/20/2021 |
| 168,770 |
| 161,490 |
| 7.99 | % |
| 9/20/2021 |
| 171,545 |
| 106,839 |
| 7.99 | % |
| 10/20/2021 |
| 113,491 |
| 241,891 |
| 7.99 | % |
| 1/20/2022 |
| 257,231 |
| 449,268 |
| 7.99 | % |
| 6/20/2022 |
| 477,760 |
| 33,952 |
| 8.00 | % |
| 10/15/2012 |
| 35,836 |
| 656,356 |
| 8.00 | % |
| 10/15/2014 |
| 699,124 |
| 66,491 |
| 8.00 | % |
| 5/15/2016 |
| 71,039 |
| 263,955 |
| 8.00 | % |
| 6/15/2016 |
| 282,010 |
| 114,308 |
| 8.00 | % |
| 9/15/2016 |
| 122,126 |
| 134,266 |
| 8.00 | % |
| 11/20/2016 |
| 141,502 |
| 46,263 |
| 8.00 | % |
| 7/20/2023 |
| 49,257 |
| 47,315 |
| 8.00 | % |
| 12/20/2023 |
| 50,378 |
| 8,957 |
| 8.00 | % |
| 2/20/2024 |
| 9,544 |
| 150,538 |
| 8.00 | % |
| 2/20/2026 |
| 160,648 |
| 29,473 |
| 8.00 | % |
| 12/20/2026 |
| 31,452 |
| 119,057 |
| 8.00 | % |
| 9/15/2029 |
| 127,460 |
| 65,027 |
| 8.00 | % |
| 1/20/2032 |
| 69,261 |
| 273,299 |
| 8.10 | % |
| 5/20/2019 |
| 290,278 |
| 66,245 |
| 8.10 | % |
| 6/20/2019 |
| 70,361 |
| 130,284 |
| 8.10 | % |
| 7/20/2019 |
| 138,378 |
| 173,051 |
| 8.10 | % |
| 9/20/2019 |
| 183,802 |
| 84,845 |
| 8.10 | % |
| 9/20/2019 |
| 90,116 |
| 85,488 |
| 8.10 | % |
| 10/20/2019 |
| 90,800 |
| 120,341 |
| 8.10 | % |
| 1/20/2020 |
| 128,000 |
| 133,001 |
| 8.10 | % |
| 7/20/2020 |
| 141,466 |
| 123,574 |
| 8.25 | % |
| 12/15/2011 |
| 130,363 |
| 29,499 |
| 8.25 | % |
| 1/15/2012 |
| 31,268 |
| 58,651 |
| 8.25 | % |
| 8/15/2015 |
| 62,827 |
| 489,963 |
| 8.25 | % |
| 4/15/2019 |
| 524,417 |
| 143,658 |
| 8.25 | % |
| 2/15/2020 |
| 153,991 |
| 19,963 |
| 8.25 | % |
| 4/15/2027 |
| 21,345 |
| 85,893 |
| 8.25 | % |
| 6/15/2027 |
| 91,840 |
| 91,348 |
| 8.38 | % |
| 10/15/2019 |
| 98,079 |
| 41,646 |
| 8.38 | % |
| 11/15/2029 |
| 44,668 |
| 112,835 |
| 8.40 | % |
| 2/15/2019 |
| 121,244 |
| 32,923 |
| 8.40 | % |
| 4/15/2019 |
| 35,377 |
| 122,611 |
| 8.40 | % |
| 6/15/2019 |
| 131,750 |
| 42,332 |
| 8.40 | % |
| 9/15/2019 |
| 45,487 |
| 57,815 |
| 8.40 | % |
| 9/15/2019 |
| 62,124 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 57,543 |
| 8.40 | % |
| 2/15/2020 |
| 61,929 |
| 41,141 |
| 8.50 | % |
| 12/15/2011 |
| 43,588 |
| 141,857 |
| 8.50 | % |
| 1/15/2012 |
| 151,079 |
| 70,302 |
| 8.50 | % |
| 4/15/2015 |
| 75,740 |
| 32,032 |
| 8.50 | % |
| 4/15/2015 |
| 34,509 |
| 210,011 |
| 8.50 | % |
| 9/15/2016 |
| 226,894 |
| 104,659 |
| 8.50 | % |
| 1/15/2017 |
| 113,348 |
| 93,605 |
| 8.50 | % |
| 12/15/2021 |
| 101,036 |
| 127,201 |
| 8.50 | % |
| 12/15/2021 |
| 137,461 |
| 18,339 |
| 8.50 | % |
| 7/20/2022 |
| 19,769 |
| 114,070 |
| 8.50 | % |
| 10/20/2022 |
| 122,970 |
| 58,303 |
| 8.50 | % |
| 9/20/2024 |
| 62,984 |
| 96,203 |
| 8.50 | % |
| 3/20/2025 |
| 104,016 |
| 278,510 |
| 8.50 | % |
| 12/20/2026 |
| 298,654 |
| 26,741 |
| 8.50 | % |
| 8/15/2030 |
| 28,797 |
| 39,837 |
| 8.50 | % |
| 12/15/2030 |
| 42,901 |
| 57,657 |
| 8.60 | % |
| 5/15/2018 |
| 61,398 |
| 95,736 |
| 8.60 | % |
| 6/15/2018 |
| 101,950 |
| 72,574 |
| 8.63 | % |
| 10/15/2018 |
| 77,214 |
| 368 |
| 8.75 | % |
| 5/15/2006 |
| 370 |
| 3,632 |
| 8.75 | % |
| 10/15/2006 |
| 3,658 |
| 5,928 |
| 8.75 | % |
| 11/15/2006 |
| 5,970 |
| 2,667 |
| 8.75 | % |
| 2/15/2007 |
| 2,760 |
| 906 |
| 8.75 | % |
| 3/15/2007 |
| 937 |
| 35,374 |
| 8.75 | % |
| 11/15/2009 |
| 37,290 |
| 38,275 |
| 8.75 | % |
| 6/15/2011 |
| 40,880 |
| 195,135 |
| 8.75 | % |
| 11/15/2011 |
| 208,416 |
| 36,703 |
| 8.75 | % |
| 12/15/2011 |
| 39,201 |
| 96,677 |
| 8.75 | % |
| 10/15/2030 |
| 104,500 |
| 1,768 |
| 9.00 | % |
| 5/15/2006 |
| 1,782 |
| 2,097 |
| 9.00 | % |
| 5/15/2006 |
| 2,113 |
| 11,129 |
| 9.00 | % |
| 6/15/2006 |
| 11,217 |
| 8,782 |
| 9.00 | % |
| 7/15/2006 |
| 8,851 |
| 2,426 |
| 9.00 | % |
| 10/15/2006 |
| 2,445 |
| 11,212 |
| 9.00 | % |
| 10/15/2006 |
| 11,300 |
| 2,810 |
| 9.00 | % |
| 6/15/2007 |
| 2,912 |
| 18,952 |
| 9.00 | % |
| 10/15/2007 |
| 19,643 |
| 7,546 |
| 9.00 | % |
| 9/15/2008 |
| 7,764 |
| 19,421 |
| 9.00 | % |
| 9/15/2008 |
| 19,982 |
| 10,113 |
| 9.00 | % |
| 11/15/2008 |
| 10,405 |
| 17,992 |
| 9.00 | % |
| 12/15/2008 |
| 18,511 |
| 2,296 |
| 9.00 | % |
| 2/15/2009 |
| 2,384 |
| 11,622 |
| 9.00 | % |
| 4/15/2009 |
| 12,069 |
| 9,769 |
| 9.00 | % |
| 4/15/2009 |
| 10,239 |
| 4,099 |
| 9.00 | % |
| 5/15/2009 |
| 4,257 |
| 17,786 |
| 9.00 | % |
| 8/15/2009 |
| 18,642 |
| 15,816 |
| 9.00 | % |
| 9/15/2009 |
| 16,577 |
| 8,715 |
| 9.00 | % |
| 10/15/2009 |
| 9,051 |
| 24,005 |
| 9.00 | % |
| 11/15/2009 |
| 25,385 |
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 5,791 |
| 9.00 | % |
| 12/15/2009 |
| 6,070 |
| 80,387 |
| 9.00 | % |
| 7/15/2010 |
| 84,138 |
| 98,268 |
| 9.00 | % |
| 5/15/2011 |
| 105,403 |
| 39,855 |
| 9.00 | % |
| 5/15/2011 |
| 42,749 |
| 65,310 |
| 9.00 | % |
| 6/15/2011 |
| 70,052 |
| 91,048 |
| 9.00 | % |
| 7/15/2011 |
| 97,659 |
| 24,875 |
| 9.00 | % |
| 8/15/2011 |
| 26,411 |
| 84,948 |
| 9.00 | % |
| 8/15/2011 |
| 91,115 |
| 87,412 |
| 9.00 | % |
| 9/15/2011 |
| 93,759 |
| 58,802 |
| 9.00 | % |
| 9/15/2011 |
| 63,072 |
| 98,473 |
| 9.00 | % |
| 9/15/2011 |
| 105,623 |
| 55,692 |
| 9.00 | % |
| 10/15/2011 |
| 59,735 |
| 37,905 |
| 9.00 | % |
| 1/15/2012 |
| 40,883 |
| 47,530 |
| 9.00 | % |
| 5/20/2015 |
| 50,683 |
| 127,047 |
| 9.00 | % |
| 7/15/2015 |
| 135,982 |
| 35,851 |
| 9.00 | % |
| 8/15/2015 |
| 38,372 |
| 99,849 |
| 9.00 | % |
| 12/20/2015 |
| 106,472 |
| 16,542 |
| 9.00 | % |
| 5/20/2016 |
| 17,691 |
| 134,949 |
| 9.00 | % |
| 1/15/2017 |
| 147,428 |
| 13,269 |
| 9.00 | % |
| 3/20/2017 |
| 14,191 |
| 521,071 |
| 9.00 | % |
| 6/15/2017 |
| 569,255 |
| 412,142 |
| 9.00 | % |
| 7/15/2017 |
| 450,252 |
| 246,147 |
| 9.00 | % |
| 8/20/2017 |
| 263,248 |
| 3,153 |
| 9.00 | % |
| 7/20/2021 |
| 3,396 |
| 2,819 |
| 9.00 | % |
| 10/20/2021 |
| 3,036 |
| 321,303 |
| 9.00 | % |
| 11/15/2024 |
| 346,532 |
| 42,707 |
| 9.00 | % |
| 7/20/2025 |
| 46,189 |
| 157,818 |
| 9.00 | % |
| 4/15/2026 |
| 171,221 |
| 23,970 |
| 9.10 | % |
| 5/15/2018 |
| 26,041 |
| 83,674 |
| 9.25 | % |
| 11/15/2009 |
| 89,468 |
| 39,821 |
| 9.25 | % |
| 1/15/2010 |
| 42,954 |
| 35,617 |
| 9.25 | % |
| 4/15/2010 |
| 38,420 |
| 41,143 |
| 9.25 | % |
| 11/15/2010 |
| 44,380 |
| 67,264 |
| 9.25 | % |
| 11/15/2011 |
| 73,098 |
| 12,935 |
| 9.25 | % |
| 4/15/2012 |
| 14,146 |
| 15,153 |
| 9.50 | % |
| 9/15/2009 |
| 15,834 |
| 6,478 |
| 9.50 | % |
| 10/15/2009 |
| 6,769 |
| 20,606 |
| 9.50 | % |
| 10/15/2009 |
| 21,533 |
| 103,675 |
| 9.50 | % |
| 10/15/2009 |
| 108,338 |
| 28,867 |
| 9.50 | % |
| 11/15/2009 |
| 30,962 |
| 86,024 |
| 9.50 | % |
| 1/15/2010 |
| 93,137 |
| 33,012 |
| 9.50 | % |
| 2/15/2010 |
| 34,831 |
| 71,881 |
| 9.50 | % |
| 4/15/2010 |
| 76,262 |
| 25,617 |
| 9.50 | % |
| 8/15/2010 |
| 27,735 |
| 36,316 |
| 9.50 | % |
| 11/15/2010 |
| 39,319 |
| 23,033 |
| 9.50 | % |
| 1/15/2011 |
| 25,136 |
| 98,127 |
| 9.50 | % |
| 3/15/2011 |
| 107,089 |
| 15,762 |
| 9.50 | % |
| 3/20/2016 |
| 17,148 |
| 45,426 |
| 9.50 | % |
| 11/20/2016 |
| 49,419 |
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
|
| |||||
| 3,476 |
| 9.50 | % |
| 8/20/2017 |
| 3,792 |
| 5,299 |
| 9.50 | % |
| 12/20/2017 |
| 5,781 |
| 7,500 |
| 9.50 | % |
| 4/20/2018 |
| 8,200 |
| 1,845 |
| 9.50 | % |
| 5/20/2018 |
| 2,018 |
| 60,829 |
| 9.50 | % |
| 6/20/2018 |
| 66,511 |
| 32,021 |
| 9.50 | % |
| 7/20/2018 |
| 35,012 |
| 24,216 |
| 9.50 | % |
| 8/20/2018 |
| 26,478 |
| 120,379 |
| 9.50 | % |
| 9/20/2018 |
| 131,624 |
| 44,782 |
| 9.50 | % |
| 9/20/2018 |
| 48,965 |
| 12,911 |
| 9.50 | % |
| 9/20/2018 |
| 14,117 |
| 45,579 |
| 9.50 | % |
| 8/20/2019 |
| 49,941 |
| 4,812 |
| 9.50 | % |
| 10/20/2019 |
| 5,273 |
| 59,901 |
| 9.75 | % |
| 8/15/2009 |
| 64,365 |
| 48,943 |
| 9.75 | % |
| 9/15/2009 |
| 52,590 |
| 146,622 |
| 9.75 | % |
| 8/15/2010 |
| 158,853 |
| 33,806 |
| 9.75 | % |
| 11/15/2010 |
| 36,626 |
| 175,155 |
| 9.75 | % |
| 12/15/2010 |
| 189,766 |
| 96,901 |
| 9.75 | % |
| 1/15/2011 |
| 105,829 |
| 151,130 |
| 9.75 | % |
| 1/15/2011 |
| 165,054 |
| 25,494 |
| 9.75 | % |
| 10/15/2012 |
| 28,034 |
| 14,437 |
| 9.75 | % |
| 10/15/2012 |
| 15,876 |
| 15,565 |
| 9.75 | % |
| 10/15/2012 |
| 17,116 |
| 33,899 |
| 9.75 | % |
| 11/15/2012 |
| 37,277 |
| 17,937 |
| 9.75 | % |
| 11/15/2012 |
| 19,724 |
| 36,984 |
| 9.75 | % |
| 11/15/2012 |
| 40,669 |
| 27,675 |
| 9.75 | % |
| 11/15/2012 |
| 30,433 |
| 30,687 |
| 10.00 | % |
| 11/15/2008 |
| 32,671 |
| 1,626 |
| 10.00 | % |
| 11/15/2009 |
| 1,713 |
| 80,637 |
| 10.00 | % |
| 6/15/2010 |
| 87,687 |
| 5,057 |
| 10.00 | % |
| 6/15/2010 |
| 5,499 |
| 10,094 |
| 10.00 | % |
| 7/15/2010 |
| 10,976 |
| 23,331 |
| 10.00 | % |
| 7/15/2010 |
| 25,370 |
| 12,115 |
| 10.00 | % |
| 10/15/2010 |
| 13,174 |
| 59,190 |
| 10.00 | % |
| 11/15/2010 |
| 64,364 |
| 3,820 |
| 10.00 | % |
| 1/15/2011 |
| 4,189 |
| 33,116 |
| 10.00 | % |
| 3/20/2016 |
| 36,285 |
| 18,577 |
| 10.00 | % |
| 11/15/2017 |
| 20,424 |
| 32,840 |
| 10.00 | % |
| 2/15/2019 |
| 36,099 |
| 24,331 |
| 10.00 | % |
| 2/20/2019 |
| 26,648 |
| 34,018 |
| 10.00 | % |
| 3/20/2019 |
| 37,258 |
| 23,175 |
| 10.00 | % |
| 5/15/2019 |
| 25,476 |
| 29,796 |
| 10.00 | % |
| 5/20/2019 |
| 32,634 |
| 266,611 |
| 10.00 | % |
| 10/15/2019 |
| 299,612 |
| 42,505 |
| 10.00 | % |
| 11/15/2019 |
| 46,724 |
| 7,821 |
| 10.00 | % |
| 7/15/2020 |
| 8,606 |
| 32,498 |
| 10.00 | % |
| 12/15/2020 |
| 35,761 |
| 109,962 |
| 10.00 | % |
| 6/15/2021 |
| 121,108 |
| 11,845 |
| 10.00 | % |
| 10/15/2030 |
| 13,102 |
| 32,838 |
| 10.25 | % |
| 5/15/2009 |
| 35,065 |
|
|
See accompanying notes to portfolios of investments on page 58. | 19 |
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
|
|
|
| ||||
| |||||||
| 24,910 |
| 10.25% |
| 11/15/2011 |
| 27,088 |
| 29,220 |
| 10.25% |
| 1/15/2012 |
| 31,956 |
| 1,978 |
| 10.25% |
| 2/15/2012 |
| 2,163 |
| 30,624 |
| 10.25% |
| 2/15/2012 |
| 33,492 |
| 17,273 |
| 10.25% |
| 7/15/2012 |
| 18,890 |
| 32,966 |
| 10.50% |
| 6/15/2009 |
| 35,312 |
| 6,771 |
| 10.50% |
| 7/15/2010 |
| 7,336 |
| 10,014 |
| 10.50% |
| 9/15/2015 |
| 11,020 |
| 13,066 |
| 10.50% |
| 11/15/2015 |
| 14,379 |
| 19,753 |
| 10.50% |
| 8/20/2017 |
| 21,747 |
| 51,105 |
| 10.50% |
| 11/15/2018 |
| 56,561 |
| 53,393 |
| 10.50% |
| 6/15/2019 |
| 59,173 |
| 269,943 |
| 10.50% |
| 2/15/2020 |
| 298,490 |
| 239,219 |
| 10.50% |
| 8/15/2021 |
| 268,670 |
| 3,517 |
| 10.75% |
| 1/15/2010 |
| 3,808 |
| 1,510 |
| 10.75% |
| 7/15/2011 |
| 1,642 |
| 60,861 |
| 11.00% |
| 1/15/2010 |
| 65,366 |
| 37,432 |
| 11.00% |
| 1/15/2010 |
| 40,203 |
| 71,176 |
| 11.00% |
| 1/15/2010 |
| 76,444 |
| 32,726 |
| 11.00% |
| 3/15/2010 |
| 35,149 |
| 10,446 |
| 11.00% |
| 6/15/2010 |
| 11,219 |
| 25,772 |
| 11.00% |
| 9/15/2010 |
| 27,679 |
| 35,788 |
| 11.25% |
| 6/15/2010 |
| 39,090 |
| 5,102 |
| 11.25% |
| 9/15/2010 |
| 5,572 |
| 43,072 |
| 11.25% |
| 9/15/2010 |
| 47,047 |
| 7,445 |
| 11.25% |
| 2/15/2011 |
| 8,163 |
| 19,853 |
| 11.25% |
| 3/15/2011 |
| 21,766 |
| 10,516 |
| 11.25% |
| 3/15/2011 |
| 11,530 |
| 44,621 |
| 11.25% |
| 4/15/2011 |
| 48,923 |
| 10,551 |
| 11.25% |
| 5/15/2011 |
| 11,568 |
| 12,936 |
| 11.25% |
| 7/15/2011 |
| 14,184 |
| 7,194 |
| 11.25% |
| 7/15/2011 |
| 7,888 |
| 33,039 |
| 11.25% |
| 7/15/2011 |
| 36,224 |
| 30,303 |
| 11.25% |
| 9/15/2011 |
| 33,224 |
| 13,872 |
| 11.25% |
| 10/15/2011 |
| 15,210 |
| 2,293 |
| 11.25% |
| 11/15/2011 |
| 2,514 |
| 115,120 |
| 11.50% |
| 8/15/2018 |
| 125,839 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 35,222,916 |
|
|
|
|
|
|
| |
|
|
|
|
| |||
Total mortgage pass-through securities |
| 156,455,876 | |||||
|
|
|
| ||||
(cost: $157,543,854) |
|
|
|
|
|
|
|
|
|
Par ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| |||
|
|
|
|
|
Taxable Municipal Securities (0.3%) (2) |
|
| ||
222,000 |
| Bernalillo Multifamily Rev. Series |
| 235,584 |
45,000 |
| Cuyahoga County Multifamily Rev. |
| 45,860 |
75,000 |
| Louisiana Comm. Dev. Auth Rev. |
| 74,510 |
400,000 |
| Maplewood Multifamily Rev. |
| 390,000 |
|
|
|
| |
|
|
|
|
|
Total taxable municipal securities |
| 745,954 | ||
|
| |||
(cost: $742,000) |
|
| ||
|
|
|
|
|
U.S. Treasury / Federal Agency Securities (4.0%) (2) | ||||
|
| Federal Home Loan Bank: |
|
|
750,000 |
| 5.08%, 7/16/18 |
| 704,901 |
490,000 |
| 4.00%, 7/16/18 |
| 458,912 |
5,000,000 |
| FNMA Strip, zero coupon, |
| 1,346,850 |
|
| U.S. Treasury Strips, zero coupon, |
|
|
22,900,000 |
| 4.80% effective yield, 5/15/30 |
| 6,910,716 |
|
|
|
| |
|
|
|
|
|
Total U.S. Treasury / Federal Agency securities |
| 9,421,379 | ||
|
| |||
(cost: $9,992,823) |
|
| ||
|
|
|
|
|
Collateralized Mortgage Obligations (28.4%) (2) |
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
|
|
| ||||
692,933 |
| 3.00% |
| 2/15/2023 |
| 629,851 |
3,941,649 |
| 3.25% |
| 4/15/2032 |
| 3,598,654 |
763,782 |
| 3.50% |
| 5/15/2029 |
| 709,873 |
638,331 |
| 4.00% |
| 11/15/2014 |
| 610,418 |
3,000,000 |
| 4.00% |
| 5/31/2025 |
| 2,612,662 |
414,853 |
| 4.00% |
| 12/15/2032 |
| 385,074 |
1,279,296 |
| 4.50% |
| 5/15/2032 |
| 1,242,133 |
500,000 |
| 5.50% |
| 7/15/2031 |
| 488,616 |
5,000,000 |
| 5.50% |
| 3/15/2032 |
| 4,884,588 |
625,368 |
| 7.50% |
| 6/15/2017 |
| 655,059 |
346,544 |
| 7.50% |
| 9/15/2030 |
| 357,568 |
23,014 |
| 7.75% |
| 3/18/2025 |
| 23,325 |
44,996 |
| 9.15% |
| 10/15/2020 |
| 47,607 |
1,769,808 |
| 9.50% |
| 2/15/2020 |
| 1,871,519 |
|
|
|
|
|
| |
|
|
|
|
|
| 18,116,947 |
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
| Maturity |
| Maturity Value ($)(1) |
|
|
|
| ||||
| |||||||
| 3,853,675 |
| 3.50% |
| 2/25/2033 |
| 3,491,208 |
| 986,489 |
| 3.50% |
| 3/25/2033 |
| 922,652 |
| 445,299 |
| 3.50% |
| 8/25/2033 |
| 394,719 |
| 1,994,797 |
| 3.50% |
| 6/25/2035 |
| 1,910,775 |
| 1,115,763 |
| 3.75% |
| 5/25/2033 |
| 1,009,629 |
| 1,100,000 |
| 4.00% |
| 4/25/2030 |
| 1,041,776 |
| 1,489,189 |
| 4.00% |
| 11/25/2032 |
| 1,412,448 |
| 425,446 |
| 4.00% |
| 1/25/2033 |
| 382,094 |
| 1,863,648 |
| 4.00% |
| 3/25/2033 |
| 1,724,365 |
| 1,745,276 |
| 4.00% |
| 5/25/2033 |
| 1,662,764 |
| 271,888 |
| 5.00% |
| 8/25/2022 |
| 266,991 |
| 1,700,000 |
| 5.00% |
| 12/25/2031 |
| 1,608,583 |
| 109,451 |
| 6.85% |
| 12/18/2027 |
| 112,174 |
| 127,780 |
| 7.00% |
| 1/25/2021 |
| 128,871 |
| 621,751 |
| 7.00% |
| 1/25/2022 |
| 632,796 |
| 57,510 |
| 7.70% |
| 3/25/2023 |
| 60,042 |
| 343,283 |
| 8.00% |
| 7/25/2022 |
| 351,128 |
| 100,000 |
| 8.00% |
| 7/18/2027 |
| 110,715 |
| 549,928 |
| 8.00% |
| 7/25/2044 |
| 571,516 |
| 129,390 |
| 8.20% |
| 4/25/2025 |
| 132,857 |
| 49,082 |
| 8.50% |
| 1/25/2021 |
| 52,038 |
| 69,918 |
| 8.50% |
| 4/25/2021 |
| 72,011 |
| 362,274 |
| 8.50% |
| 9/25/2021 |
| 383,279 |
| 124,240 |
| 8.50% |
| 1/25/2025 |
| 130,077 |
| 92,718 |
| 8.75% |
| 9/25/2020 |
| 96,337 |
| 226,063 |
| 8.95% |
| 10/25/2020 |
| 241,792 |
| 679,537 |
| 9.00% |
| 7/25/2019 |
| 724,037 |
| 420,838 |
| 9.00% |
| 12/25/2019 |
| 449,479 |
| 142,841 |
| 9.00% |
| 5/25/2020 |
| 150,246 |
| 85,371 |
| 9.00% |
| 6/25/2020 |
| 90,237 |
| 205,473 |
| 9.00% |
| 6/25/2020 |
| 216,344 |
| 35,201 |
| 9.00% |
| 7/25/2020 |
| 37,763 |
| 171,093 |
| 9.00% |
| 9/25/2020 |
| 183,130 |
| 128,150 |
| 9.00% |
| 10/25/2020 |
| 137,056 |
| 266,633 |
| 9.00% |
| 3/1/2024 |
| 286,823 |
| 1,557,092 |
| 9.00% |
| 11/25/2028 |
| 1,714,050 |
| 202,632 |
| 9.25% |
| 1/25/2020 |
| 217,979 |
| 194,546 |
| 9.50% |
| 12/25/2018 |
| 210,399 |
| 398,683 |
| 9.50% |
| 3/25/2020 |
| 432,495 |
| 87,366 |
| 9.50% |
| 4/25/2020 |
| 92,549 |
| 245,178 |
| 9.50% |
| 5/25/2020 |
| 264,494 |
| 319,991 |
| 9.50% |
| 11/25/2020 |
| 345,476 |
| 101,775 |
| 9.50% |
| 11/25/2031 |
| 107,519 |
| 465,889 |
| 9.60% |
| 3/25/2020 |
| 504,925 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 25,068,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) | |
|
|
| |||||
| |||||||
Government National Mortgage Association: |
|
| |||||
730,034 |
| 4.00% |
| 10/17/2029 |
|
| 686,639 |
2,532,095 |
| 7.00% |
| 1/20/2032 |
|
| 2,669,020 |
509,667 |
| 8.00% |
| 1/16/2030 |
|
| 529,225 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 3,884,884 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Vendee Mortgage Trust: |
|
|
|
|
| ||
1,000,000 |
| 5.00% |
| 8/15/2028 |
|
| 983,267 |
1,000,000 |
| 5.00% |
| 7/15/2030 |
|
| 943,969 |
162,886 |
| 5.63% |
| 2/15/2024 |
|
| 158,585 |
2,000,000 |
| 6.00% |
| 4/15/2027 |
|
| 2,004,182 |
2,000,000 |
| 6.00% |
| 2/15/2030 |
|
| 2,026,516 |
31,901 |
| 6.50% |
| 10/15/2025 |
|
| 31,868 |
8,289,860 |
| 6.50% |
| 12/15/2028 |
|
| 8,134,194 |
4,524,553 |
| 7.00% |
| 9/15/2027 |
|
| 4,644,497 |
473,341 |
| 8.29% |
| 12/15/2026 |
|
| 494,478 |
|
|
|
|
|
| ||
|
|
|
|
|
|
| 19,421,556 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Other: |
|
|
|
|
|
|
|
97,345 |
| 5.00% |
| 12/25/2033 |
|
| 92,803 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Total collateralized mortgage obligations |
|
| 66,584,828 | ||||
|
|
| |||||
(cost: $69,123,344) |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Short-Term Securities (0.7%) (2) |
|
|
| ||||
1,535,854 |
| Dreyfus Cash Mgmt. Fund, 4.38% |
|
| 1,535,854 | ||
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total short-term securities |
|
| 1,535,854 | ||||
|
| ||||||
(cost: $1,535,854) |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Total investments in securities |
|
| $ | 234,743,891 | |||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 21 |
|
|
|
|
|
|
|
|
| |
| One Year Ended March 31, 2006 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 3/31/06: |
| $9.72 Per Share |
3/31/05: |
| $9.77 Per Share |
Total Net Assets: |
| $366.9 Million |
30-day SEC Yield: |
| 4.35% |
Tax Equivalent Yield: |
| 6.69%(1) |
12-Month Distribution Rate: |
| 3.81% |
Average Maturity: |
| 12.9 Years |
Duration to Estimated Avg. Life: |
| 3.1 Years(2) |
Implied Duration: |
| 3.3 Years(2) |
|
|
(1) | For individuals in the 35.0% federal tax bracket. |
(2) | See next page. |
|
PORTFOLIO STRUCTURE |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
| AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||||||||||
|
|
| Sit |
|
|
| Lipper |
|
| ||||||||||||||
|
|
| Tax-Free |
| Lehman |
| General |
|
| ||||||||||||||
|
|
| Income |
| 5-Year Muni. |
| Muni. Bond |
|
| ||||||||||||||
|
|
| Fund |
| Bond Index |
| Fund Index |
|
| ||||||||||||||
|
|
|
|
|
|
| |||||||||||||||||
| 3 Month** |
| 0.36 | % |
| 0.02 | % |
| 0.47 | % |
|
| |||||||||||
| 6 Month** |
| 1.21 |
|
| 0.32 |
|
| n/a |
|
|
| |||||||||||
| 1 Year |
| 3.35 |
|
| 2.14 |
|
| 4.22 |
|
|
| |||||||||||
| 5 Year |
| 3.94 |
|
| 4.04 |
|
| 4.85 |
|
|
| |||||||||||
| 10 Year |
| 4.80 |
|
| 4.78 |
|
| 5.32 |
|
|
| |||||||||||
| Inception |
| 5.96 |
|
| 5.86 |
|
| 6.44 |
|
|
| |||||||||||
| (9/29/88) |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
| CUMULATIVE TOTAL RETURNS* |
| |||||||||||||||||||||
|
|
| Sit |
|
|
| Lipper |
|
| ||||||||||||||
|
|
| Tax-Free |
| Lehman |
| General |
|
| ||||||||||||||
|
|
| Income |
| 5-Year Muni. |
| Muni. Bond |
|
| ||||||||||||||
|
|
| Fund |
| Bond Index |
| Fund Index |
|
| ||||||||||||||
|
|
|
|
|
|
| |||||||||||||||||
| 1 Year |
| 3.35 | % |
| 2.14 | % |
| 4.22 | % |
|
| |||||||||||
| 5 Year |
| 21.32 |
|
| 21.88 |
|
| 26.69 |
|
|
| |||||||||||
| 10 Year |
| 59.80 |
|
| 59.58 |
|
| 67.93 |
|
|
| |||||||||||
| Inception |
| 175.60 |
|
| 171.16 |
|
| 198.48 |
|
|
| |||||||||||
| (9/29/88) |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
| *As of 3/31/06. |
|
|
|
|
|
|
| **Not annualized. |
| |||||||||||||
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman 5-Year Muni. Bond Index. The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds. |
(2) Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (9/29/88) and held until 3/31/06 would have grown to $27,560 in the Fund or $27,116 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
23
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Municipal Bonds (97.2%) (2) |
|
| ||
Alabama (0.6%) |
|
|
|
|
675,000 |
| Birmingham-Southern College Private Educ. Bldg. Rev. Series 1997, 5.35%, 12/1/19 |
| 677,808 |
100,000 |
| DCH Hlth. Care Auth. Fac. Rev. Series 1998 (MBIA insured), 4.875%, 6/01/13 |
| 102,140 |
200,000 |
| Huntsville Hlth. Care Auth. Rev. Series 1997-A (MBIA insured), 5.00%, 6/1/17 |
| 204,818 |
750,000 |
| Montgomery Special Care Facs. Fin. Auth. Rev. Series 1997-C (Baptist Med. Ctr. Proj.), 5.375%, 9/1/22 |
| 778,853 |
550,000 |
| Montgomery Med. Clinic Board Hlth. Care Fac. Rev. Series 1991, 7.00%, 3/1/15 |
| 551,166 |
|
|
|
| |
|
|
|
| 2,314,785 |
|
|
|
| |
Alaska (2.6%) |
|
|
|
|
12,505,000 |
| Alaska HFC Gen. Mtg. Rev. 1997 Series A, zero coupon, 6.15% effective yield on purchase date, 12/1/17 |
| 6,365,170 |
|
| Northern Alaska Tobacco Securitization Corp. Asset-Backed Rev.: |
|
|
2,045,000 |
| Series 2000, 6.20%, 6/1/22 |
| 2,129,090 |
1,175,000 |
| Series 2001, 4.75%, 6/1/15 |
| 1,184,459 |
|
|
|
| |
|
|
|
| 9,678,719 |
|
|
|
| |
Arizona (1.1%) |
|
|
|
|
205,000 |
| Bullhead City Special Assessment Impt. Dist. Series 1993 (Bullhead Pkwy. Proj.), 6.10%, 1/1/10 |
| 206,132 |
500,000 |
| Maricopa Co. Indl. Dev. Auth. Multifamily Hsg. Rev. Series 1996-B (Advantage PT, etc. Proj.), Escrowed to Maturity, 7.375%, 7/1/26 |
| 514,545 |
100,000 |
| Maricopa Co. Pollution Ctrl. Rev. Ref. Public Svc. Series 1996-A (New Mexico Public Svc. Co. Proj.), 6.30%, 12/1/26 |
| 104,077 |
700,000 |
| Phoenix Street & Hwy. User Rev. Ref. Jr. Lien Series 1992, 6.25%, 7/1/11 |
| 701,309 |
|
| Pima Co. Indl. Dev. Auth. Educ. Rev.: |
|
|
295,000 |
| Series 2004I (AZ Charter Schools Proj.), 5.00%, 7/1/12 |
| 295,605 |
250,000 |
| Series 2004A (Noah Webster Basic School Proj.), 5.25%, 12/15/16 |
| 251,715 |
210,000 |
| Series 2005M (AZ Charter Schools Proj.), 5.70%, 7/1/23 |
| 212,318 |
565,000 |
| Pinal Co. Indl. Dev. Auth. Correctional Fac. Rev. Series 2006-A (Florence West Prison Proj.) (ACA insured), 5.25%, 10/1/23 |
| 589,092 |
1,250,000 |
| Salt River Proj. Agric. Impt. & Pwr. Dist. Elec. Sys. Rev. Ref. Series 1993-C, 4.90%, 1/1/08 |
| 1,251,238 |
|
|
|
| |
|
|
|
| 4,126,031 |
|
|
|
| |
Arkansas (1.1%) |
|
|
|
|
1,000,000 |
| Bentonville Co. ISD No. 6 Refunding & Construction G.O. Series 2003-A (Ambac insured), 4/75%, 6/1/24 |
| 1,008,410 |
37,440 |
| Drew Co. Public Fac. Bd. Single Family Mtg. Rev. Ref. Series 1993-A2 (FNMA backed), 7.90%, 8/1/11 |
| 37,831 |
755,000 |
| Maumelle HDC First Lien Rev. Ref. 1992 Series A (Section 8), 7.875%, 7/1/09 |
| 756,351 |
|
| North Little Rock Hlth. Facs. Bd. Health Care Rev. Series 2001 (Baptist Health Proj.): |
|
|
555,000 |
| 5.00%, 7/1/06 |
| 556,554 |
300,000 |
| 5.00%, 7/1/07 |
| 303,861 |
490,000 |
| 5.00%, 7/1/08 |
| 500,202 |
1,000,000 |
| White Co. Hlth. Care Fac. Rev. Series 2005 (White Co. Med. Ctr. Proj.), 5.00%, 12/1/14 |
| 1,023,520 |
|
|
|
| |
|
|
|
| 4,186,729 |
|
|
|
|
24
|
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|
|
|
|
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| |
|
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| ||
|
|
| ||
| |
| ||
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|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
California (9.5%) |
|
|
|
|
160,000 |
| ABAG Fin. Auth. For Nonprofit Corp. Rev Series 2002 (Redwood Sr. Homes & Svcs. Proj.), 4.10%, 11/15/07 |
| 159,616 |
250,000 |
| Agua Caliente Band Cahuilla Indians Rev. Series 2003, 4.60%, 7/1/08 |
| 251,715 |
500,000 |
| Bay Area Govt. Assoc. Rapid Transit Rev. Series 2001-A (FTA Cap Grant Proj.), 4.875%, 6/15/09 |
| 500,510 |
120,000 |
| Bay Area Govt. Assoc. Tax Allocation Rev. Series 1994-A (FSA insured), 6.00%, 12/15/14 |
| 121,778 |
250,000 |
| Blythe Redev. Agy. Tax Allocation Ref. Series 1997 (Proj. No. 1), 5.80%, 5/1/28 |
| 261,297 |
200,000 |
| Calexico Cmnty. Redev. Agy. Tax Allocation Series 2000 (Merged Central Bus. District Redev. Proj.) (Ambac insured), 5.375%, 8/1/26 |
| 210,652 |
3,835,000 |
| CA Co. Tobacco Securitization Agy. Asset-Backed Rev. Series 2002 (Alameda Co.), 4.75%, 6/1/19 |
| 3,860,848 |
925,000 |
| CA Cmnty. College Fin. Auth. Student Hsg. Rev. Series 2003-A (Feather River Cmnty. District Proj.), 4.625%, 7/1/13 |
| 924,935 |
750,000 |
| CA Dept. Water Resources Rev. Series 1972 (Central Valley Proj.), 5.25%, 7/1/22 |
| 776,610 |
220,000 |
| CA Dept. Water Resources Rev. Series 1996-Q (Central Valley Proj.)(MBIA insured), 5.375%, 12/1/27 |
| 225,436 |
|
| CA Educ. Facs. Auth. Rev.: |
|
|
10,000 |
| Series 1995-A (Pooled College & Univ. Proj.), 5.60%, 12/1/14 |
| 10,213 |
520,000 |
| Series 1996 (Chapman Univ. Proj.), 5.125%, 10/1/26 |
| 533,354 |
|
| CA G.O. Rev. Ref.: |
|
|
770,000 |
| Series 1993 (FSA insured), 5.125%, 10/1/17 |
| 775,498 |
60,000 |
| Series 1996 (Ambac insured), 5.25%, 6/1/21 |
| 60,746 |
|
| CA Prerefunded G.O. Series 1996 (Ambac insured): |
|
|
105,000 |
| 5.25%, 6/1/21 |
| 106,351 |
35,000 |
| 5.25%, 6/1/25 |
| 35,450 |
495,000 |
| CA Govt. Fin. Auth. Lease Rev. Series 2003-A (Placer Co. Transportation Proj.), 6.00%, 12/1/28 |
| 531,704 |
500,000 |
| CA Hlth. Facs. Fin. Auth. Rev. Series 1997-B (Cedars-Sinai Med. Ctr. Proj.), 5.125%, 8/1/27 |
| 517,330 |
|
| CA Hlth. Facs. Fin. Auth. Rev. Series 2001 (Casa Colina Proj.): |
|
|
500,000 |
| 5.00%, 4/01/08 |
| 506,335 |
500,000 |
| 5.50%, 4/01/11 |
| 523,075 |
300,000 |
| CA Public Works Board Lease Rev. Series 1993-A (Various CA State Univ. Proj.), 5.25%, 12/1/13 (5) |
| 300,336 |
|
| CA Statewide Cmntys. Dev. Auth. Rev. Series 2005 (Daughters of Charity Hlth. Proj.): |
|
|
500,000 |
| 5.00%, 7/1/06 |
| 501,655 |
500,000 |
| 5.00%, 7/1/07 |
| 506,800 |
530,000 |
| 5.25%, 7/1/11 |
| 556,193 |
400,000 |
| Del Mar Race Track Auth. Rev. Series 2005, 4.00%, 8/15/06 |
| 400,464 |
2,250,000 |
| East Side Unified High Sch. Dist. Santa Clara Co. G.O. Series 1999-E (FGIC insured), Escrowed to Maturity, 5.00%, 9/1/22 |
| 2,284,583 |
235,000 |
| Garden Grove C.O.P Series 1993 (Bahia Village/Emerald Isle Proj.)(FSA insured), 5.70%, 8/1/23 |
| 236,471 |
|
| Golden State Tobacco Securitization Corp. Asset-Backed Rev. Series 2005-A: |
|
|
1,015,000 |
| 5.00%, 6/1/16 |
| 1,016,857 |
3,000,000 |
| 5.00%, 6/1/19 |
| 3,081,060 |
1,250,000 |
| Interest Appreciation Bonds, 6/1/22 |
| 1,014,625 |
750,000 |
| Intercommunity Hosp. Fin. Auth. C.O.P Series 1998 (ACA insured), 5.25%, 11/1/19 |
| 767,730 |
400,000 |
| Los Angeles Water & Power Rev. Series 2001-A-A3, 5.25%, 7/1/18 |
| 400,852 |
3,175,000 |
| Northern CA Power Agy. Rev. Series 1987-A, 5.00%, 7/1/09 |
| 3,177,350 |
700,000 |
| Northern CA Tobacco Securitization Auth. Asset-Backed Rev. Series 2005-A1, 4.75%, 6/1/23 |
| 687,064 |
500,000 |
| Oakland UNI Sch. Dist. Alameda Co. G.O. Series 2005 (MBIA insured), 5.00%, 8/1/24 |
| 523,120 |
1,000,000 |
| Rancho Cucamonga Redev. Agy. Tax Allocation Series 1996 (MBIA insured), 5.25%, 9/1/16 |
| 1,026,530 |
2,750,000 |
| San Bernardino Co. C.O.P. Series 1996 (Med. Ctr. Fin. Proj.) (MBIA insured), 5.00%, 8/1/28 |
| 2,817,595 |
|
|
See accompanying notes to portfolios of investments on page 58. | 25 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
1,000,000 |
| San Francisco City & Co. Airpts., Intl. Arpt. Rev. Ref. Series 2001-27B (FGIC insured), 5.125%, 5/1/31 |
| 1,032,240 |
500,000 |
| Santa Clara Redev. Agy. Tax Allocation Series 2003 (Bayshore North Proj.) (MBIA insured), 5.00%, 6/1/15 |
| 501,150 |
|
| Southern CA Tobacco Securitization Auth. Asset-Backed Senior Rev: |
|
|
|
| Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev. Series 2006: |
|
|
315,000 |
| 4.50%, 3/1/11 |
| 312,798 |
385,000 |
| 4.875%, 3/1/16 |
| 383,190 |
1,900,000 |
| Series 2001-B, 6.00%, 5/15/22 |
| 1,991,884 |
430,000 |
| Series 2002-A, 5.25%, 6/1/27 |
| 437,804 |
|
|
|
| |
|
|
|
| 34,851,804 |
|
|
|
| |
Colorado (2.2%) |
|
|
|
|
565,000 |
| Adonea Met. Dist. No. 2 Rev. Series 2005-B, 4.375%, 12/1/15 |
| 551,389 |
385,000 |
| Aurora Golf Course Enterprise Sys. Rev. Ref. Series 2005, 4.00%, 12/1/08 |
| 383,472 |
250,000 |
| Beacon Met. Dist. Rev. Series 2005-B, 4.375%, 12/1/15 |
| 246,172 |
225,000 |
| Castle Rock Golf Enterprise Rev. Ref. Series 2005, 3.25%, 12/1/06 |
| 224,111 |
285,000 |
| CO Educ. & Cultural Fac. Rev. Ref. Series 2003-C (Cheyenne Mtn. Charter Sch. Proj.), 4.625%, 6/15/12 |
| 274,991 |
1,250,000 |
| CO Hlth. Fac. Auth. Rev. Series 1995 (Covenant Retirement Cmty. Proj.), 6.75%, 12/1/15 |
| 1,277,075 |
|
| CO HFA Single Family Program Senior Series: |
|
|
95,000 |
| 1996B-2, 7.45%, 11/1/27 |
| 95,727 |
65,000 |
| 1997B-3, 6.80%, 11/1/28 |
| 65,111 |
|
| CO Hlth. Fac. Auth. Rev.: |
|
|
250,000 |
| Series 1995 (Covenant Retirement Cmntys. Proj.), 6.20%, 12/1/07 |
| 255,402 |
320,000 |
| Series 2000-A (Porter Place Proj.) (GNMA collateralized), 5.10%, 1/20/11 |
| 329,027 |
1,000,000 |
| Series 2000 (Evangelical Lutheran Proj.), 6.25%, 12/1/10 |
| 1,085,190 |
1,000,000 |
| Series 2002 (Evangelical Lutheran Proj.), 5.90%, 10/1/27 |
| 1,060,340 |
250,000 |
| Series 2005 (Covenant Retirement Cmntys. Proj.), 4.50%, 12/1/07 |
| 251,522 |
400,000 |
| Series 2005 (Covenant Retirement Cmntys. Proj.), 4.50%, 12/1/08 |
| 402,644 |
600,000 |
| Denver Hsg. Corp. Multifamily Rev. Ref. Series 1997-A (Section 8), 5.35%, 10/1/12 |
| 611,502 |
255,000 |
| Denver West Met. Dist. Refunding G.O. Series 2005, 3.40%, 12/1/07 |
| 252,802 |
435,000 |
| E-470 Pub. Hwy. Auth. Rev. Senior Series 1997-A (MBIA insured), 5.00%, 9/1/26 |
| 444,426 |
|
| SBC Met. Dist. G.O. Ref. Series 2005 (ACA insured): |
|
|
150,000 |
| 3.125%, 12/1/06 |
| 149,317 |
205,000 |
| 3.00%, 12/1/07 |
| 201,761 |
25,000 |
| Thornton Single Family Mtg. Rev. Ref. Series 1992-A, 8.05%, 8/1/09 |
| 25,017 |
|
|
|
| |
|
|
|
| 8,186,998 |
|
|
|
| |
Connecticut (0.7%) |
|
| ||
600,000 |
| Connecticut Hlth. & Educ. Fac. Auth. Rev. Series 1996-H (Yale-New Haven Hosp. Proj.) |
| 614,352 |
|
| Mashantucket Western Pequot Tribe Subordinated Special Rev.: |
|
|
100,000 |
| Series 1997-B, 5.75%, 9/1/18 |
| 103,473 |
1,850,000 |
| Series 1999-B, zero coupon, 5.05% effective yield on purchase date, 9/1/09 |
| 1,578,106 |
500,000 |
| Series 1999-B, zero coupon, 5.12% effective yield on purchase date, 9/1/26 |
| 286,820 |
|
|
|
| |
|
|
|
| 2,582,751 |
|
|
|
| |
Delaware (0.1%) |
|
|
|
|
250,000 |
| DE Hlth. Fac. Auh. Rev. Series 2005-A (Beebe Med. Ctr. Proj.), 5.00%, 6/1/07 |
| 253,340 |
|
|
|
| |
|
|
|
|
|
District of Columbia (0.4%) |
|
| ||
1,500,000 |
| DC Rev. Series 1996 (Carnegie Endowment Proj.), 5.75%, 11/15/26 |
| 1,533,255 |
|
|
|
|
26
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|
|
|
|
|
|
|
| |
|
|
| ||
|
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| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Florida (5.6%) |
|
|
|
|
500,000 |
| Capital Trust Agy. Hsg. Rev. Series 2005-B (Sub-Atlandtic Hsg. Foundation Proj.), 4.50%, 7/1/15 |
| 502,225 |
600,000 |
| Capital Trust Agy. Multifamily Rev. Sr. Series 2003-A (Golf Villas, Rivermill, and Village Square Apts. Proj.), 4.75%, 6/1/13 |
| 575,310 |
800,000 |
| Charlotte Co. Utility Rev. Ref. Series 1996-A (FGIC insured), 5.625%, 10/01/16 |
| 823,712 |
575,000 |
| Collier Co. HFA Multifamily Hsg. Rev. Series 2002-C (Goodlette Arms Proj.), 5.25%, 8/15/15 |
| 595,654 |
385,000 |
| Dade Co. Hlth. Fac. Auth. Hosp. Rev. Ref. Series 1993-A (Baptist Hosp. Miami Proj.) |
| 385,400 |
500,000 |
| Dade Co. School Dist. G.O. Series 1997 (MBIA insured), 5.00%, 2/15/15 |
| 510,265 |
|
| Escambia Co. Hlth. Facs. Auth. Rev. Series 1998 (Baptist Hosp. & Manor Proj.): |
|
|
200,000 |
| 5.00%, 10/01/08 |
| 203,864 |
470,000 |
| 5.125%, 10/1/19 |
| 478,399 |
500,000 |
| FL Div. Bd. Fin. Dept. Gen. Svcs. Rev. Series 1997-A, 5.00%, 7/1/11 |
| 512,740 |
750,000 |
| FL HFC Hsg. Rev. Hsg. Series 2000-D-1 (Augustine Club Apts. Proj.)(MBIA insured), 5.75%, 10/1/30 |
| 784,275 |
500,000 |
| FL Brd. Educ. Cap. Outlay G.O. Series 1998-A (Pub. Educ. Proj.) (FSA insured), 5.20%, 6/1/23 |
| 518,160 |
1,950,000 |
| FL University Cap. Impt. Rev. Series 2004, 5.125%, 9/1/33 |
| 2,010,977 |
|
| Highlands Co. Hlth. Fac. Auth. Hosp. Rev.: |
|
|
500,000 |
| Series 2005-I (Adventist Hlth. Proj.), 5.00%, 11/15/29 |
| 513,670 |
425,000 |
| Ref. Series 2005-B (Adventist Hlth. Proj.), 5.00%, 11/15/30 |
| 429,182 |
|
| Hillsborough Co. Indl. Dev. Auth. Hosp. Rev. Ref. Series 2003-A (Tampa Gen. Hosp. Proj.): |
|
|
1,850,000 |
| 5.00%, 10/1/08 |
| 1,898,119 |
500,000 |
| 5.25%, 10/1/24 |
| 523,000 |
350,000 |
| Lakeland Hosp. Sys. Rev. Ref. Series 1997 (Lakeland Regl. Med. Center Proj.) (MBIA insured), 5.00%, 11/15/22 |
| 356,331 |
545,000 |
| Lee Co. Indus. Dev. Auth. Hlth. Care Fac. Rev. Series 1999-A (ShellPoint Village Proj.), 5.50%, 11/15/08 |
| 556,832 |
405,000 |
| Martin Co. Hlth. Fac. Auth. Hosp. Rev. Ref. Series 2002-B (Martin Memorial Med. Ctr. Proj.), |
|
|
|
| 4.875%, 11/15/12 |
| 409,986 |
585,000 |
| Marion Co. Hosp. Dist. Rev. Ref. Series 1999 (Munroe Regl. Med. Ctr. Proj), 5.25%, 10/1/10 |
| 612,542 |
680,000 |
| Miami Beach Water & Sewer Rev. Series 1995 (FSA insured), 5.375%, 9/1/15 |
| 694,511 |
400,000 |
| Miami - Dade Co. Spl. Oblig. Rev. Series 1997-B, zero coupon, 4.79% effective yield on purchase date, 10/1/35 |
| 350,188 |
|
| North Broward Hosp. Dist. Rev. Series 1997 (MBIA insured): |
|
|
100,000 |
| Prerefunded Series, 5.375%, 1/15/24 |
| 102,364 |
160,000 |
| Unrefunded Balance Series, 5.375%, 1/15/24 |
| 163,382 |
1,000,000 |
| Orange Co. Hlth. Fac. Auth. Rev. Series 2006-B (Orlando Regl. Hlth. Care Proj.), 5.125%, 11/15/39 |
| 1,019,970 |
|
| Palm Beach Co. Hlth. Fac. Auth. Rev. Ref.: |
|
|
125,000 |
| Series 1996 (Retirement Cmnty. Proj.), 5.625%, 11/15/20 |
| 128,262 |
200,000 |
| Series 2003 (Abbey Delray South Proj.), 5.15%, 10/1/12 |
| 206,540 |
25,000 |
| Plantation Water & Sewer Rev. Series 1989 (MBIA insured), zero coupon, 5.45% effective yield on purchase date (MBIA insured), 3/1/07 |
| 23,728 |
3,105,000 |
| Port Everglades Auth. Rev. Ref. Series 1989-A (FSA insured), 5.00%, 9/1/16 |
| 3,106,273 |
|
| South Lake Co. Hosp. Dist. Rev. Series 2003 (South Lake Hosp. Inc.): |
|
|
285,000 |
| 4.25%, 10/1/08 |
| 284,544 |
700,000 |
| 5.50%, 10/1/13 |
| 738,444 |
500,000 |
| South Miami Hlth. Fac. Auth. Hosp. Rev. Series 2003 (Baptist Hlth. So. FL Grp. Proj.), 5.20%, 11/15/28 |
| 515,850 |
|
|
|
| |
|
|
|
| 20,534,699 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 27 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Georgia (0.4%) |
|
|
|
|
500,000 |
| Atlanta Dev. Auth. Rev. Series 2005-C (Tuff ATDC Proj.), 5.00%, 1/1/31 |
| 502,780 |
|
| Private Colleges & Univ. Auth. Rev. Ref. Series 1999-A (Mercer Univ. Proj.): |
|
|
300,000 |
| 4.45%, 10/1/07 |
| 301,512 |
750,000 |
| 5.25%, 10/1/14 |
| 769,178 |
|
|
|
| |
|
|
|
| 1,573,470 |
|
|
|
| |
Illinois (12.9%) |
|
|
|
|
475,000 |
| Blue Island Tax Increment G.O. Ref. Series 1997 (MBIA insured), 5.10%, 12/15/12 |
| 485,455 |
|
| Broadview Village of Cook Co. Tax Increment Rev. Series 1999: |
|
|
750,000 |
| 4.90%, 7/1/06 |
| 751,882 |
1,410,000 |
| 5.00%, 7/1/07 |
| 1,427,978 |
1,085,000 |
| 5.05%, 7/1/08 |
| 1,108,273 |
2,030,000 |
| 5.10%, 7/1/09 |
| 2,088,566 |
805,000 |
| Series 2000-B, 4.75%, 3/1/30 |
| 822,404 |
|
| Chicago Brd. Educ. G.O. Series 1997-A (Chicago School Reform Proj.): |
|
|
500,000 |
| 5.25%, 12/1/22 |
| 520,885 |
750,000 |
| 5.25%, 12/1/30 |
| 780,128 |
2,670,000 |
| Chicago G.O. Series 1996-B (FGIC insured), Unrefunded, 5.125%, 1/1/25 |
| 2,719,662 |
55,000 |
| Chicago Metro Hsg. Dev. Corp. Mtg. Rev. Ref. Series 1992-A (FHA insured) (Section 8), 6.85%, 7/1/22 |
| 55,327 |
700,000 |
| Hodgkinds Tax Increment Rev. Ref. Senior Series 2005, 5.00%, 1/1/07 |
| 705,803 |
435,000 |
| IL DFA Rev. Series 2002-A (Chicago Charter School Fdn. Proj.), 5.25%, 12/1/12 |
| 436,910 |
|
| IL DFA Pollution Ctrl. Rev. Ref.: |
|
|
300,000 |
| Series 1993-C2 (Central IL Public Svc. Co. Proj.), 5.70%, 8/15/26 |
| 300,408 |
2,500,000 |
| Series 2000-A (Ameren CIPS Proj.), 5.50%, 3/1/14 |
| 2,535,525 |
2,750,000 |
| Series 1993-C1 (Central IL Pub. Svc. Co.), 5.95%, 8/15/26 |
| 2,816,688 |
|
| IL DFA Refunding & New Money Rev. (Cmty. Rehab. Providers Fac. Acquisition Program): |
|
|
1,740,000 |
| Series 1997-A, 5.80%, 7/1/08 |
| 1,773,617 |
2,635,000 |
| Series 1997-A, 6.05%, 7/1/19 |
| 2,705,038 |
300,000 |
| Series 1997-A, 5.90%, 7/1/09 |
| 306,297 |
4,765,000 |
| Series 1997-A, 6.00%, 7/1/15 |
| 4,879,503 |
1,240,000 |
| Series 1997-C, 5.65%, 7/1/19 |
| 1,277,014 |
845,000 |
| Series 1998-A, 5.50%, 7/1/12 |
| 867,088 |
250,000 |
| Series 1998-A, 5.70%, 7/1/19 |
| 257,727 |
75,000 |
| Series 2002-A (Cmnty. Rehab. Providers Fac. Proj.), 5.70%, 7/1/12 |
| 76,711 |
5,000 |
| IL HDA Multifamily Rev. Series 1994-5 (Section 8), 6.75%, 9/1/23 |
| 5,040 |
500,000 |
| IL Fin. Auth. Multifamily Rev. Series 2005-A (Senior Living-Bethel Terrace Apt. Proj.) |
| 486,295 |
|
| IL Hlth. Fac. Auth. Rev.: |
|
|
500,000 |
| Series 1993 (Rush-Presbyterian-St. Lukes Proj.), 5.50%, 11/15/25 |
| 502,550 |
1,100,000 |
| Ref. Series 1994 (Passavant Memorial Area Hospital Assn.) (MBIA insured), 5.95%, 10/1/11 |
| 1,152,701 |
2,595,000 |
| Ref. Series 1993-A (Edward Hosp. Proj.), 6.00%, 2/15/19 |
| 2,630,759 |
55,000 |
| Unrefunded Balance Series 1996 (MBIA insured), 5.80%, 8/15/16 |
| 57,556 |
350,000 |
| Ref. Series 1996-B (Sarah Bush Lincoln Hlth. Ctr. Proj.), 5.50%, 2/15/16 |
| 358,914 |
125,000 |
| Series 1997-A (Edward Oblig Group Proj.) (Ambac insured), 5.25%, 2/15/27 |
| 128,896 |
360,000 |
| Ref. Series 1999 (Silver Cross Hosp. Proj.), 5.25%, 8/15/15 |
| 366,682 |
970,000 |
| Ref. Series 2001 (Decatur Memorial Hospital Proj.), 4.625%, 10/1/08 |
| 982,717 |
500,000 |
| Series 2000 (IA Health System Proj.), 6.75%, 2/15/13 |
| 557,420 |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
200,000 |
| IL Sales Tax Rev. Series 1994-U, 5.00%, 6/15/10 |
| 200,510 |
500,000 |
| IL State G.O. Series 1995, 5.50%, 7/1/10 |
| 508,215 |
|
| Lombard Pub. Facs. Corp. Rev. First Tier Series 2005-A2 (Conference Ctr. & Hotel Proj.) (ACA insured): |
|
|
750,000 |
| 5.50%, 1/1/25 |
| 795,233 |
1,000,000 |
| 5.50%, 1/1/30 |
| 1,055,510 |
250,000 |
| Melrose Park Tax Increment G.O. Series 1999-A (FSA insured), 5.25%, 12/15/15 |
| 259,027 |
|
| Southwestern IL Dev. Auth. Rev. Series 1999 (Anderson Hosp. Proj.): |
|
|
750,000 |
| 5.375%, 8/15/15 |
| 772,013 |
2,625,000 |
| 5.625%, 8/15/29 |
| 2,681,464 |
2,800,000 |
| Southwestern IL Dev. Auth. Local Govt. Prog. Rev. Series 1998-A (City of East St. Louis |
|
|
|
| Tax Increment Financing Proj.), 6.00%, 4/1/10 |
| 2,747,528 |
500,000 |
| Univ. IL Rev. Hlth. Svc. Facs. Series 1997-A, 5.80%, 10/1/18 |
| 524,410 |
395,000 |
| Upper Illinois River Valley Dev. Auth. Rev. Series 2001 (Morris Hosp. Proj.), 6.05%, 12/1/11 |
| 423,930 |
500,000 |
| Will Co. Student Hsg. Rev. Series 2002-A (Joliet Junior College Proj.), 6.375%, 9/1/13 (7) (8) |
| 315,055 |
|
|
|
| |
|
|
|
| 47,211,314 |
|
|
|
| |
Indiana (4.5%) |
|
|
|
|
500,000 |
| Boone Co. Redev. Tax Increment Rev. Series 2005-B, 5.375%, 8/1/23 |
| 508,170 |
1,975,000 |
| IN Bond Bank Special Prgm. Series 1997C (Pittsboro Wastewater Treatment Plant Proj.), 5.70%, 8/1/17 |
| 2,042,585 |
2,000,000 |
| IN Hlth. & Educ. Fac. Fin. Auth. Hosp. Rev. Series 2006-A (Clarian Hlth. Oblig. Proj.), 5.25%, 2/15/40 |
| 2,041,120 |
|
| IN Hlth. & Educ. Fac. Fin. Auth. Rev. Series 2005 (Baptist Homes of IN Proj.): |
|
|
555,000 |
| 5.00%, 11/15/12 |
| 573,731 |
650,000 |
| 5.25%, 11/15/25 |
| 661,758 |
200,000 |
| IN Hlth. Fac. Fin. Auth. Hlth. Fac. Rev. Series 1998 (Holy Cross Health Sys. Corp. Proj.) (MBIA insured), 5.00%, 12/1/28 |
| 204,084 |
|
| IN Hlth. Fac. Fin. Auth. Hosp. Rev.: |
|
|
|
| Series 1993 (Community Hosp. of Anderson Proj.)(MBIA insured): |
|
|
135,000 |
| 6.00%, 1/1/14 |
| 135,238 |
650,000 |
| 6.00%, 1/1/23 |
| 650,682 |
600,000 |
| Ref. Series 1998 (Floyd Memorial Hosp. & Hlth. Svcs. Proj.), 5.25%, 2/15/18 |
| 613,188 |
|
| Series 2001A (Community Foundation Northwest IN): |
|
|
1,100,000 |
| 5.50%, 8/1/06 |
| 1,104,532 |
1,000,000 |
| 6.00%, 8/1/07 |
| 1,020,230 |
1,000,000 |
| 6.00%, 8/1/08 |
| 1,032,290 |
1,320,000 |
| 5.50%, 8/1/13 |
| 1,368,246 |
390,000 |
| 6.375%, 8/1/21 |
| 419,695 |
190,000 |
| 6.375%, 8/1/31 |
| 201,438 |
300,000 |
| Series 2004A (Community Foundation Northwest IN), 4.75%, 3/1/14 |
| 297,684 |
500,000 |
| IN HFA Single Family Mtg. Rev. Ref. Series 1992A, 6.80%, 1/1/17 |
| 502,920 |
|
| IN Hlth. Fac. Fin. Auth. Rev. Ref. Series 1998: |
|
|
|
| (Greenwood Village South Proj.): |
|
|
150,000 |
| 5.25%, 5/15/06 |
| 150,106 |
170,000 |
| 5.35%, 5/15/08 |
| 170,090 |
1,875,000 |
| (Marquette Manor Proj.), 5.00%, 8/15/18 |
| 1,855,800 |
250,000 |
| Shelby Co. Indl. Jail Bldg. Corp. Rev. Ref. Series 1996 (First Mtg. Proj.) (MBIA insured), 5.30%, 7/15/07 |
| 255,252 |
340,000 |
| St. Joseph Co. Ind. Hosp. Auth. Facs. Rev. Series 2005 (Madison Ctr. Oblig. Group. Proj.), 4.25%, 2/15/07 |
| 339,986 |
240,000 |
| South Knox Ind. Sch. Bldg. Corp. First Mtg. Rev. Series 1998, 4.80%, 7/15/17 |
| 243,298 |
|
|
|
| |
|
|
|
| 16,392,123 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 29 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Iowa (0.4)% |
|
|
|
|
1,130,000 |
| IA Fin. Auth. Multifamily Hsg. Rev. Ref. Series 1997A (Kingswood Apts. Proj.) (GNMA-collateralized), 6.15%, 5/1/32 |
| 1,167,087 |
|
| IA Fin. Auth Single Family Rev. Series 2000D (GNMA/FNMA Mtg. Backed Securities Proj.): |
|
|
110,000 |
| 5.65%, 7/1/07 |
| 111,206 |
110,000 |
| 5.75%, 7/1/09 |
| 113,659 |
|
|
|
| |
|
|
|
| 1,391,952 |
|
|
|
| |
Kansas (0.1%) |
|
|
|
|
55,000 |
| Olathe & Labette Cos. Mtg. Loan Rev. 1991 Series B (GNMA collateralized) zero coupon, 7.56% effective yield on purchase date, 2/1/23 |
| 16,857 |
|
|
|
| |
Louisiana (0.9%) |
|
|
|
|
7,200,000 |
| Capital Appreciation Series 2000D1 (GNMA & FNMA collateralized) zero coupon, 6.46% effective yield on purchase date, 4/1/34 |
| 1,227,816 |
455,000 |
| LA HFA Multifamily Mtg. Rev. Series 2003A (Section 8-202 Proj)(FSA insured), 4.40%, 6/1/33 |
| 451,615 |
500,000 |
| LA Public Facs. Auth. Rev. Series 1995A (Glen Retirement Sys. Proj.), 6.50%, 12/1/15 |
| 507,035 |
200,000 |
| LA Stadium & Expo Dist. Rev. Series 1995-B (Hotel Occupancy Tax & Stadium Rev. Proj.) (FGIC insured), 5.25%, 7/1/15 |
| 204,188 |
400,000 |
| Orleans Levee Dist. Rev. Series 1995A (Tr. Rcpts.) (FSA insured), 5.95%, 11/1/14 |
| 412,484 |
450,000 |
| South LA Port Common Rev. Ref. Series 1997 (Cargill, Inc. Proj.), 5.85%, 4/1/17 |
| 460,584 |
|
|
|
| |
|
|
|
| 3,263,722 |
|
|
|
| |
Maine (0.7%) |
|
|
|
|
385,000 |
| ME Hlth. & Hgr. Educ. Fac. Auth. Rev. Unrefunded Balance Series 1995-C (FSA insured), 5.375%, 7/1/06 |
| 386,706 |
1,000,000 |
| Skowhegan Pollution Ctrl. Rev. Ref. Series 1993 (Scott Paper Co. Proj.), 5.90%, 11/1/13 |
| 1,001,810 |
1,000,000 |
| South Berwick Educ. Rev. Series 1998 (Berwick Academy Issue), 5.25%, 8/1/13 |
| 1,020,930 |
|
|
|
| |
|
|
|
| 2,409,446 |
|
|
|
| |
Massachusetts (0.7%) |
|
| ||
|
| MA Hlth. & Educ. Fac. Auth. Rev.: |
|
|
250,000 |
| Series 1993-E (South Shore Hosp. Proj.) (MBIA insured), 5.50%, 7/1/20 |
| 253,837 |
900,000 |
| Series 1998-B (Cape Cod Healthcare Obligated Group Issue Proj.), 5.25%, 11/15/13 |
| 917,793 |
350,000 |
| Series 2005-E (Emerson Hosp. Proj.) (Radian insured), 3.50%, 8/15/07 |
| 348,831 |
|
| MA Dev. Fin. Agy. Rev. Series 2005 (Evergreen Ctr., Inc.): |
|
|
185,000 |
| 4.00%, 1/1/07 |
| 184,356 |
195,000 |
| 4.00%, 1/1/08 |
| 193,042 |
200,000 |
| 4.00%, 1/1/09 |
| 196,568 |
600,000 |
| MA Indus. Fin. Agy. Rev. Series 1995 (St. Mark’s School Issue), 6.00%, 1/1/15 |
| 615,336 |
|
|
|
| |
|
|
|
| 2,709,763 |
|
|
|
| |
Michigan (3.3%) |
|
| ||
520,000 |
| Central Wayne Co. Sanitation Auth. Incinerator Rev. Series 2003VII, 4.375%, 7/1/06 |
| 519,808 |
|
| Chandler Park Academy Public School Rev. Series 2005: |
|
|
80,000 |
| 3.60%, 11/1/07 |
| 79,322 |
125,000 |
| 4.00%, 11/1/09 |
| 123,722 |
500,000 |
| 5.00%, 11/1/22 |
| 497,195 |
1,000,000 |
| Kent Hosp. Fin. Auth. Rev. Series 2005-A (Met Hosp. Proj.), 6.00%, 7/1/35 |
| 1,071,180 |
225,000 |
| MI Hosp. Fin. Auth. Rev. Ref. Series 1994 (Mercy Mem. Hosp. Proj.)(MBIA insured), 5.25%, 6/1/21 |
| 225,443 |
|
| MI Hosp. Fin. Auth. Rev. Ref. Series 1997-A: |
|
|
1,640,000 |
| (Mid MI Obligation Group), 5.20%, 6/1/12 |
| 1,705,830 |
520,000 |
| (Detroit Medical Group), 5.25%, 8/15/27 |
| 537,602 |
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
750,000 |
| MI Strategic Fund Ltd. Obligation Rev. Ref. Series 2003 (Dow Chemical Proj.) |
|
|
|
| (Mandatory Put 6/1/08), 4.60%, 6/1/14 |
| 759,713 |
500,000 |
| Plymouth Educ. Ctr. Charter Schl. Academy Rev. Ref. Series 2005, 5.00%, 11/1/11 |
| 507,025 |
300,000 |
| Pontiac Tax Increment Fin. Auth. Rev. Ref. Series 2002 (Dev. Area 2 Proj.) (ACA insured), 5.625%, 6/1/22 |
| 316,698 |
2,095,000 |
| Southfield Econ. Dev. Corp. Ltd. Obligation Rev. Series 1998-A (Lawrence Tech. Univ. Proj.), 5.25%, 2/1/13 |
| 2,130,070 |
1,873,912 |
| Suburban Mobility Auth. Regl. Transportation C.O.P. Series 2002, 4.90%, 2/15/09 (5) |
| 1,876,311 |
|
| Summit Academy North Public School C.O.P. Series 2001: |
|
|
135,000 |
| 5.70%, 7/1/06 |
| 135,597 |
145,000 |
| 5.95%, 7/1/07 |
| 148,493 |
1,500,000 |
| Whitmore Lake MI Pub. School District G.O. Series 2003 (FGIC, Q-SBLF insured), 5.00%, 5/1/28 |
| 1,553,280 |
|
|
|
| |
|
|
|
| 12,187,289 |
|
|
|
| |
Minnesota (1.9%) |
|
|
|
|
3,385,000 |
| Dakota Co. HRA Multifamily Mtg. Rev. Ref. Series 1997A (Park Place Apts. Proj.)(GNMA Collateralized), 6.875%, 2/20/32 |
| 3,595,886 |
740,000 |
| Hopkins Multifamily Hsg. Rev. Series 1996 (Hopkins Renaissance Proj.)(Section 8), 6.375%, 4/1/20 |
| 762,977 |
2,315,000 |
| Plymouth Multifamily Hsg. Dev. Rev. Ref. Series 1996A (GNMA collateralized) |
|
|
|
| (Fox Forest Apts. Proj.), 8.05%, 6/20/31 |
| 2,395,909 |
|
|
|
| |
|
|
|
| 6,754,772 |
|
|
|
| |
Mississippi (0.4%) |
|
| ||
325,000 |
| MS Dev. Bank Spl. Oblig. Rev. Ref. Series 1998 (Three Rivers Solid Waste Proj.), 5.125%, 7/1/14 |
| 322,280 |
100,000 |
| MS Business Fin. Corp. Hlth. Fac. Rev. Series 1998 (Rush Medical Foundation Inc. Proj.), 5.375%, 7/1/15 |
| 98,066 |
1,000,000 |
| MS Hosp. Equip. & Facs. Auth. Rev. Series 1997A (Rush Med. Fdn. Proj.), 6.00%, 1/1/16 |
| 1,016,830 |
|
|
|
| |
|
|
|
| 1,437,176 |
|
|
|
| |
Missouri (2.6%) |
|
| ||
380,000 |
| Brentwood Tax Increment Rev. Ref. Series 2005, 3.625%, 5/1/09 |
| 376,037 |
1,000,000 |
| Cameron Indl. Dev. Auth. Rev. Ref. Series 2000 (Cameron Cmnty. Hosp. Proj.) (ACA Insured), 5.80%, 12/1/09 |
| 1,025,570 |
500,000 |
| Cape Girardeau Co. Indl. Dev. Auth. Hlth. Care Fac. Rev. Series 2002 (Southeast MO Hosp. Assoc. Proj.), 5.75%, 6/01/32 |
| 517,240 |
320,000 |
| Chesterfield Rev. Ref. & Impt. Series 2002 (Chesterfield Vy. Projs.), 4.50%, 4/15/16 |
| 319,949 |
205,000 |
| Greene Co. C.O.P. Series 2000 (Law Enforcement Proj.), 5.50%, 7/1/09 (5) |
| 210,227 |
375,000 |
| Hannibal Indl. Dev. Auth. Tax Increment & Transn. Dev. Rev. Ref. & Impt. Series 2006 (Stardust-Munger Proj.), 4.70%, 4/15/23 |
| 367,245 |
|
| MO Dev. Finance Board Infrastructure Fac. Rev.: |
|
|
|
| Series 2000A (Eastland Ctr. Proj. Phase 1): |
|
|
905,000 |
| 5.75%, 4/1/09 |
| 929,191 |
550,000 |
| 5.75%, 4/1/12 |
| 570,185 |
1,000,000 |
| Series 2000B (Eastland Ctr. Proj. Phase 2), 6.00%, 4/1/15 |
| 1,055,150 |
450,000 |
| Series 2005A (Public Safety Proj.), 4.00%, 3/1/08 |
| 449,518 |
260,000 |
| Joplin Dev. Auth. Hlth. Facs. Rev. Series 2004 (Freeman Hlts. Sys. Proj.), 3.875%, 2/15/07 |
| 259,363 |
500,000 |
| MO Hlth. & Educ. Fac. Auth. Rev. Series 2005-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 5.375%, 2/1/35 |
| 511,250 |
895,000 |
| MO Hlth. & Educ. Fac. Auth. Educ. Fac. Rev. Series 1999 (Park College Proj.), 5.55%, 6/1/09 |
| 892,628 |
|
| MO Environmental Impt. & Energy Res. Auth. Water Fac. Rev. Ref.: |
|
|
825,000 |
| Series 1996, 5.25%, 12/1/09 |
| 841,533 |
150,000 |
| Series 1999 (Tri-Co. Water Auth. Proj.)(Radian insured), 5.50%, 4/1/07 |
| 152,568 |
1,000,000 |
| St. Louis Indl. Dev. Auth. Tax-Exempt Impt. Rev. Series 1998 (St. Louis Zoo Fdn.) |
|
|
|
| (LOC Nationsbank), 5.10%, 8/15/12 |
| 1,022,340 |
|
|
|
| |
|
|
|
| 9,499,994 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 31 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Montana (0.7%) |
|
|
|
|
1,135,000 |
| Crow Finance Auth. Tribal Purpose Revenue Series 1997A, 5.70%, 10/1/27 |
| 1,172,898 |
|
| Forsyth Pollution Ctrl. Rev. Ref. Series 1993 (Montana Power Co. Proj.): |
|
|
130,000 |
| (Ambac insured), 5.90%, 12/1/23 |
| 131,490 |
85,000 |
| (MBIA insured), 6.125%, 5/1/23 |
| 86,110 |
1,000,000 |
| MT Fac. Fin. Auth. Rev. Series 2005 (Great Falls Pre-Release Svcs. Proj.), 5.08%, 4/1/21 |
| 1,020,030 |
|
|
|
| |
|
|
|
| 2,410,528 |
|
|
|
| |
Nevada (2.7%) |
|
|
|
|
3,500,000 |
| Clark Co. Indl. Dev. Rev. Ref. Series 1992C (Nevada Pwr. Co.)(Ambac insured), 7.20%, 10/1/22 |
| 3,662,260 |
2,750,000 |
| Clark Co. Pollution Ctrl. Rev. Ref. Series 1992B (Nevada Pwr. Co. Proj.)(FGIC insured), 6.60%, 6/1/19 |
| 2,784,458 |
600,000 |
| Las Vegas Paiute Tribe Rev. Series 2002A (ACA insured), 6.625%, 11/1/17 |
| 664,470 |
|
| NV Hsg. Dev. SF Mtg. Program: |
|
|
|
| Series 1995-A: |
|
|
400,000 |
| 6.00%, 6/1/08 |
| 400,688 |
1,000,000 |
| 6.125%, 6/1/12 |
| 1,001,840 |
220,000 |
| Mezzanine Series 1998B-1, 5.30%, 4/1/16 |
| 227,080 |
1,000,000 |
| Washoe Co. Gas & Water Fac. Rev. Ref. Series 1987 (Ambac insured), 6.30%, 12/1/14 |
| 1,027,570 |
|
|
|
| |
|
|
|
| 9,768,366 |
|
|
|
| |
New Hampshire (1.1%) |
|
| ||
|
| Manchester Hsg. & Redev. Auth. Rev.: |
|
|
300,000 |
| Series 2000B (Radian insured) zero coupon, 5.25% effective yield on purchase date, 1/1/19 |
| 160,629 |
875,000 |
| Sereis 2000B (ACA insured), zero coupon, 6.00% effective yield on purchase date, 1/1/21 |
| 404,504 |
890,000 |
| Series 2000A (ACA insured), 6.75%, 1/1/15 |
| 965,846 |
500,000 |
| NH Hlth. & Educ. Fac. Auth. Rev. Series 2004 (Covenant Hlth. Proj.), 5.00%, 7/1/14 |
| 512,360 |
|
| NH Hlth. & Educ. Facs. Auth. Hosp. Rev. Series 2004 (Speare Mem. Hosp. Proj.): |
|
|
155,000 |
| 5.00%, 7/1/10 |
| 155,606 |
500,000 |
| 5.00%, 7/1/16 |
| 497,190 |
690,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1997 (Catholic Charities Proj.), 5.75%, 8/1/12 |
| 701,040 |
280,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1997 (Monadnock Cmnty. Hosp.), 5.25%, 10/1/07 |
| 284,122 |
390,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1998 (New Hampton School), 5.00%, 10/1/08 |
| 396,610 |
|
|
|
| |
|
|
|
| 4,077,907 |
|
|
|
| |
New Mexico (0.4%) |
|
| ||
815,000 |
| NM MFA Forward Mortgage-Backed Series 1995E (GNMA collateralized), 6.95%, 1/1/26 |
| 828,912 |
500,000 |
| NM Hsg. Auth. Region III Multifamily Hsg. Rev. Series 2003A (Villa Del Oso Apts. Proj.), 6.00%, 7/1/17 |
| 508,450 |
160,000 |
| Taos Co. Gross Receipts Tax Rev. Series 2004 (Co. Education Improvement Proj.), 3.25%, 10/1/08 |
| 155,283 |
|
|
|
| |
|
|
|
| 1,492,645 |
|
|
|
| |
New York (1.4%) |
|
|
|
|
1,350,000 |
| Metropolitan Transp. Auth. Svc. Contract Rev. Ref. Series 2002-A (Ambac insured), 5.00%, 7/1/30 |
| 1,398,195 |
170,000 |
| Monroe Co. Indl. Dev. Agy. Student Hsg. Rev. Series 1999-A (Collegiate Hsg. Fdn. - Rochester Institute of Technology Proj.), 4.90%, 4/1/09 |
| 171,248 |
1,230,000 |
| NY Dorm Auth. Rev. Series 1996-A (Maimonides Med. Ctr. Proj.), 5.75%, 8/1/24 |
| 1,256,654 |
75,000 |
| NY Dorm Auth. Rev. Series 2002 (FHA insured), 4.00%, 2/1/12 |
| 74,748 |
200,000 |
| NY Cos. Tobacco Trust IV Settlement Pass-Thru Rev. Series 2005-A, 4.25%, 6/1/21 |
| 196,696 |
135,000 |
| NY G.O. Series 1996-G, 5.75%, 2/1/17 |
| 137,217 |
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
500,000 |
| NY Dorm Auth. Rev. Series 1997 (State Univ. Fac. Proj.), 5.125%, 5/15/21 |
| 515,000 |
|
| NY Tobacco Settlement Fing. Corp Asset-Backed Rev.: |
|
|
160,000 |
| Series 2003-C1, 5.00%, 6/1/11 |
| 160,366 |
250,000 |
| Series 2003-C1, 5.25%, 6/1/13 |
| 257,720 |
500,000 |
| Series 2003-C1, 5.50%, 6/1/14 |
| 524,650 |
500,000 |
| Westchester Tobacco Settlement Fing. Corp Asset-Backed Rev. Series 2005, 4.50%, 6/1/21 |
| 495,255 |
|
|
|
| |
|
|
|
| 5,187,749 |
|
|
|
| |
North Carolina (0.5%) |
|
| ||
500,000 |
| Charlotte-Mecklenburg Hosp. Auth. Hlth. Care Sys. Rev. Series 1997-A (Carolinas Hlth. Care Proj.), 5.00%, 1/15/14 |
| 514,180 |
215,000 |
| Mecklenburg Co. Indus. Facs. & Pollution Ctrl. Fin. Auth. Rev. Series 1993 (Fluor Corp. Proj.), 5.25%, 12/1/09 |
| 215,206 |
250,000 |
| NC Med. Care Commission Hosp. Rev. Series 1995 (Gaston Memorial Hsop. Proj.), 5.50%, 2/15/19 |
| 255,302 |
500,000 |
| NC Med. Care Commission Hlth. Care Hsg. Rev. Series 2004-A (The ARC of NC Proj.), 4.65%, 10/1/14 |
| 501,045 |
420,000 |
| NC Med. Care Commission Rev. Series 2003 (FHA Insd. Mtg.-Betsy Johnson Proj.) (FSA insured), 5.375%, 10/1/24 |
| 449,795 |
|
|
|
| |
|
|
|
| 1,935,528 |
|
|
|
| |
Ohio (1.2%) |
|
|
|
|
75,000 |
| Akron Waterworks Rev. Ref. Series 1996 (MBIA insured), 4.80%, 3/1/07 |
| 75,796 |
295,000 |
| Cleveland-Cuyahoga Port. Auth. Dev. Rev. Series 1999A (Port of Cleveland Bond Fund Capital Imprv. Proj.), 5.375%, 5/15/19 |
| 298,068 |
|
| Cleveland-Cuyahoga Port. Auth. Dev. Rev. : |
|
|
700,000 |
| Series 2004D (Garfield Heights Proj.), 5.25%, 5/15/23 |
| 710,395 |
610,000 |
| Series 2004E (Meyers Univ. Proj.), 4.65%, 5/15/14 |
| 607,932 |
530,000 |
| Series 2004E (Meyers Univ. Proj.), 5.60%, 5/15/25 |
| 545,661 |
275,000 |
| Series 2005B (Fairmount Proj.), 5.125%, 5/15/25 |
| 277,794 |
120,000 |
| Cleveland Pub. Pwr. Sys. Rev. Ref. Subordinate Series 1996-1 (MBIA insured), 5.00%, 11/15/24 |
| 123,186 |
1,000,000 |
| Dayton Special Facs. Rev. Ref. Series 1998A (Emery Air Freight Proj.), 5.625%, 2/1/18 |
| 1,047,720 |
700,000 |
| Lorain Co. Hosp. Rev. Series 1997-B (Catholic Hlth.Care Partners Proj.) (MBIA insured), 5.50%, 9/1/27 |
| 728,028 |
|
|
|
| |
|
|
|
| 4,414,580 |
|
|
|
| |
Oklahoma (2.6%) |
|
|
|
|
|
| Citizen Potawatomi Nation Tax Rev. Series 2004-A: |
|
|
660,000 |
| 5.00%, 9/1/08 |
| 661,802 |
500,000 |
| 6.50%, 9/1/16 |
| 526,695 |
|
| Langston Econ. Dev. Auth. Rev. Series 2005-A (Langston Univ. Proj.) (ACA insured): |
|
|
1,000,000 |
| 5.00%, 5/1/30 |
| 1,005,760 |
250,000 |
| 5.00%, 5/1/35 |
| 250,350 |
200,000 |
| Comanche Co. Hosp. Auth. Rev. Ref. Series 2004 (Radian insured), 3.75%, 7/1/06 |
| 200,038 |
500,000 |
| McClain Co. Econ. Dev. Auth. Educ. Fac. Lease Rev. Series 2006 (Newcastle Pub. School Proj.), |
|
|
|
| 4.125%, 9/1/08 (5) |
| 499,735 |
|
| Norman Regl. Hosp. Auth. Rev.: |
|
|
1,500,000 |
| Ref. Series 1996-A (MBIA insured), 5.625%, 9/1/16 |
| 1,541,010 |
250,000 |
| Ref. Series 1996-A (MBIA insured), 5.625%, 9/1/21 |
| 256,680 |
500,000 |
| Series 2005, 5.50%, 9/1/24 |
| 511,925 |
335,000 |
| Stillwater Med. Ctr. Auth. Rev. Series 2005, 4.50%, 5/15/07 |
| 336,172 |
1,345,000 |
| Tulsa Indl. Auth. Educ. Fac. Rev. Ref. Series 1999B (Holland Hall School Proj.), 5.00%, 12/1/14 |
| 1,374,348 |
|
|
See accompanying notes to portfolios of investments on page 58. | 33 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
995,000 |
| Valley View Hosp. Auth. Rev. Ref. Series 1996, 6.00%, 8/15/14 |
| 1,020,731 |
1,250,000 |
| Washington Co. Med. Auth. Rev. Bartlesville Ref. Series 1996 (Jane Phillips Med. Ctr. Proj.) (Connie Lee insured), 5.50%, 11/1/10 |
| 1,274,238 |
|
|
|
| |
|
|
|
| 9,459,484 |
|
|
|
| |
Oregon (0.9%) |
|
|
|
|
3,005,000 |
| Cow Creek Band Umpqua Tribe of Indians Rev. Series 1998B (Ambac insured), 5.10%, 7/1/12 |
| 3,014,376 |
200,000 |
| Klamath Falls Intercmnty. Hosp. Auth. Rev. Ref. Series 2002 (Merle West Med. Ctr. Proj.), 5.20%, 9/1/09 |
| 204,146 |
215,000 |
| OR Hsg. & Cmty. Svcs. Dept. Mtg. Rev. Series 2000K, 5.70%, 7/1/22 |
| 215,912 |
|
|
|
| |
|
|
|
| 3,434,434 |
|
|
|
| |
Pennsylvania (5.1%) |
|
| ||
200,000 |
| Abington Co. School Dist. G.O. Series 1997 (FGIC insured), 5.125%, 5/15/26 |
| 202,568 |
|
| Allegheny Co. Hosp. Dev. Auth. Rev. Series 2003-A (Ohio Valley Gen. Hosp. Proj.): |
|
|
245,000 |
| 3.30%, 4/1/08 |
| 239,931 |
135,000 |
| 3.875%, 4/1/10 |
| 132,440 |
|
| Beaver Co. Indus. Dev. Auth. Pollution Ctrl. Rev.: |
|
|
240,000 |
| Series 1977 (St. Joe Minerals Corp. Proj.), 6.00%, 5/1/07 |
| 241,068 |
300,000 |
| Series 1995-A (Ambac insured) (OH Edison Beaver Valley Proj.), 7.05%, 10/1/20 |
| 306,057 |
565,000 |
| Chartiers Valley Indl. & Commercial Dev. Auth. Rev. Ref. Series 2003-A |
|
|
|
| (Friendship Village South Proj.), 4.75%, 8/15/11 |
| 563,514 |
85,000 |
| Delaware Co. Auth. Hosp. Rev. Series 1994 (Crozer-Chester Proj.)(MBIA insured), 5.30%, 12/15/20 |
| 85,098 |
810,000 |
| Delaware River Port Auth. PA & NJ Rev. Series 1995 (FGIC insured), 5.50%, 1/1/26 |
| 827,383 |
2,750,000 |
| Grove City Area Hosp. Auth. Rev. Series 1998 (United Cmnty. Hosp. Proj.), 5.25%, 7/1/12 |
| 2,740,375 |
|
| Horizon Hosp. System Auth. Hosp. Rev. Series 1996 (Horizon Hosp. Sys.): |
|
|
715,000 |
| 6.15%, 5/15/08 |
| 731,023 |
710,000 |
| 6.25%, 5/15/09 |
| 725,883 |
1,145,000 |
| 6.30%, 5/15/11 |
| 1,170,717 |
|
| Lehigh Co. General Purpose Auth. Rev.: |
|
|
500,000 |
| Rev. Ref. Series 1996-B (Cedar Crest College), 6.65%, 4/1/17 |
| 510,585 |
495,000 |
| Rev. Series 2004-A (Good Shepherd Group), 4.00%, 11/1/09 |
| 492,649 |
500,000 |
| Rev. Series 2003 (Saint Luke’s Bethlehem Proj.), 5.25%, 8/15/23 |
| 516,310 |
385,000 |
| Montgomery Co. Indus. Dev. Auth. Retirement Cmnty. Rev. Series 1998, 5.25%, 11/15/28 |
| 389,066 |
1,100,000 |
| PA Econ. Dev. Fin. Auth. Rev. Series 1998-A (Northwestern Human Svcs. Proj.) (ACA insured), |
|
|
|
| 4.875%, 6/1/08 |
| 1,112,573 |
|
| PA Hgr. Educ. Fac. Auth. Hlth. Svcs. Rev. Series 1996-A (Allegheny Delaware Valley |
|
|
|
| Obligated Group, Inc.) (MBIA insured): |
|
|
150,000 |
| 5.500%, 11/15/08 |
| 156,166 |
3,890,000 |
| 5.875%, 11/15/16 |
| 4,021,832 |
|
| PA Higher Educ. Fac. Auth. Rev. Series (Widener Univ. Proj.): |
|
|
100,000 |
| 3.00%, 7/15/07 |
| 98,959 |
190,000 |
| 3.10%, 7/15/08 |
| 186,458 |
590,000 |
| PA Hgr. Educ. Fac. Auth. Rev. Series 2000 (Univ. of the Arts Proj.) (Radian insured), 5.75%, 3/15/30 |
| 622,774 |
300,000 |
| PA St. Univ. Rev. Series 1997-A (MBIA insured), 5.00%, 8/15/27 |
| 307,062 |
400,000 |
| Philadelphia Hosp. & Hgr. Educ. Fac. Auth. Rev. Series 1997 (Temple Univ Hosp. Proj.), 5.875%, 11/15/23 |
| 409,956 |
775,000 |
| Philadelphia Hosp. & Hgr. Educ. Fac. Auth. Hosp. Rev. Series 1993-A (Temple Univ. Hosp. Proj.), |
|
|
|
| 6.50%, 11/15/08 |
| 804,652 |
1,200,000 |
| Washington Co. Auth. Rev. Series 1999, 6.15%, 12/1/29 |
| 1,287,336 |
|
|
|
| |
|
|
|
| 18,882,435 |
|
|
|
|
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Puerto Rico (0.6%) |
|
|
|
|
1,250,000 |
| Puerto Rico Aqueduct & Swr. Auth. Rev. Ref. Series 1995, 5.00%, 7/1/19 |
| 1,271,213 |
1,000,000 |
| Puerto Rico Comwlth. Infrastructure Fin. Auth. Special Obilgation Series 2000-A, 5.50%, 10/1/32 |
| 1,073,000 |
|
|
|
| |
|
|
|
| 2,344,213 |
|
|
|
| |
Rhode Island (0.6%) |
|
|
|
|
945,000 |
| RI Hsg. & Mtg. Fin. Corp. Rental Hsg. Program Rev. Series 1993A (Section 8), 5.65%, 10/1/08 |
| 945,000 |
260,000 |
| RI Clean Water Protection Fin. Agy. Pooled Lien Rev. Series 1995A (MBIA insured), 5.375%, 10/1/15 |
| 265,543 |
|
| RI Hlth. & Educ. Bldg. Corp. Rev. Series 1997 (Steere House Proj.): |
|
|
260,000 |
| 5.375%, 7/1/07 |
| 262,993 |
565,000 |
| 5.80%, 7/1/20 |
| 572,017 |
280,000 |
| RI Hlth. & Educ. Bldg. Corp. Rev. Series 1996 (Roger Williams Univ.)(Connie Lee insured), 5.375%, 11/15/24 |
| 288,072 |
|
|
|
| |
|
|
|
| 2,333,625 |
|
|
|
| |
South Carolina (0.9%) |
|
|
| |
400,000 |
| Charleston Educ. Excellence Fin. Rev. Series 2005 (Charleston Co. Schl. Dist. Proj.), 5.25%, 12/1/20 |
| 424,892 |
|
| Newberry Investing Children’s Educ. Installment Rev. Series 2005 (Newberry Co. School Dist. Proj.): |
|
|
500,000 |
| 3.50%, 12/1/07 (5) |
| 496,625 |
245,000 |
| 4.00%, 12/1/08 (5) |
| 244,762 |
1,000,000 |
| 5.25%, 12/1/21 (5) |
| 1,038,410 |
650,000 |
| SC Educ. Facs. Auth. Rev. Series 1996A (Furman Univ. Proj.)(MBIA insured), 5.50%, 10/1/26 |
| 668,180 |
500,000 |
| SC Jobs Econ. Dev. Auth. Hosp. Fac. Rev. Series 2006 (Tuomey Regl. Med. Ctr. Proj.) |
| 514,345 |
|
|
|
| |
|
|
|
| 3,387,214 |
|
|
|
| |
South Dakota (0.7%) |
|
|
|
|
500,000 |
| SD Bldg. Auth. Lease Rev. Series 1996-A, 5.30%, 12/1/11 |
| 514,695 |
1,350,000 |
| SD Hlth. & Educ. Fac. Auth. Rev Series 2001C (Sioux Valley Hosp. & Health Sys. Proj.) (LOC US Bank) (Mandatory Put 11/1/06), 4.85%, 11/1/19 |
| 1,351,094 |
|
| SD Hlth. & Educ. Fac. Auth. Rev. (Huron Regional Med. Ctr. Proj.): |
|
|
400,000 |
| Series 1994, 7.25%, 4/1/20 |
| 400,000 |
75,000 |
| Ref. Series 2006, 4.00%, 4/1/06 |
| 75,000 |
100,000 |
| Ref. Series 2006, 4.00%, 4/1/07 |
| 99,825 |
125,000 |
| Ref. Series 2006, 4.25%, 4/1/08 |
| 124,852 |
|
|
|
| |
|
|
|
| 2,565,466 |
|
|
|
| |
Tennessee (2.8%) |
|
|
|
|
500,000 |
| Johnson City Hlth. & Educ. Fac. Brd. Hosp. Rev. Series 2006-A (Mountain States Hlth. Alliance Proj.), 5.50%, 7/1/31 |
| 517,790 |
835,000 |
| Knox Co. Hlth. Educ. & Hsg. Fac. Brd. Rev. Series 1999 (Univ. Hlth. Sys. Inc. Proj.), 5.625%, 4/1/29 |
| 860,100 |
1,000,000 |
| Knoxville Gas Rev. Ref. & Impt. Series 1998-H, 5.00%, 3/1/12 |
| 1,001,060 |
|
| Metro Govt. Nashville & Davidson Co. Indus. Dev. Brd. Rev. Ref.: |
|
|
250,000 |
| Series 1994-A (Section 8) (FNMA collateralized), 6.00%, 4/1/24 |
| 250,960 |
240,000 |
| Series 2001-A (GNMA collateralized), 6.625%, 3/20/36 |
| 262,603 |
|
| Shelby Co. Hlth., Educ. & Hsg. Fac. Board Multifamily Hsg. Rev.: |
|
|
|
| (CME Memphis Apts. Proj.): |
|
|
1,850,000 |
| Senior Series 1998-A, 5.35%, 1/1/19 (7) (8) |
| 942,945 |
7,875,000 |
| Senior Series 1998-A, 5.55%, 1/1/29 (7) (8) |
| 3,911,434 |
1,630,000 |
| Subordinate Series 1998-C, 6.00%, 1/1/29 (7) (8) |
| 16 |
|
| (Eastwood Park Apts. Proj.): |
|
|
1,000,000 |
| Senior Series 1995-A2, 6.40%, 9/1/25 (7) (8) |
| 598,470 |
|
|
See accompanying notes to portfolios of investments on page 58. | 35 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
405,000 |
| Subordinate Series 1995-C, 7.50%, 9/1/25 (7) (8) |
| 4 |
|
| (Raleigh Forest & Sherwood Apts. Proj.): |
|
|
2,670,000 |
| Senior Series 1996-A, 6.60%, 1/1/26 (7) (8) |
| 1,862,432 |
610,000 |
| Subordinate Series 1996-C, 7.25%, 1/1/26 (7) (8) |
| 1,366 |
|
|
|
| |
|
|
|
| 10,209,180 |
|
|
|
| |
Texas (14.0%) |
|
|
|
|
2,500,000 |
| Arlington Special Oblig. Rev. Series 2005-A (Special Tax-Dallas Cowboys Proj.), 5.00%, 8/15/34 |
| 2,622,475 |
|
| Austin Convention Enterprises, Inc. (Convention Ctr.) Revenue: |
|
|
750,000 |
| Series 2001-A (Convention Center), 6.375%, 1/1/16 |
| 787,882 |
850,000 |
| Series 2001-B (ZC Specialty Ins. Co.), 5.75%, 1/1/16 |
| 902,454 |
500,000 |
| Series 2001-B (ZC Specialty Ins. Co.), 6.00%, 1/1/23 |
| 530,705 |
|
| Austin Utilities System Rev. Ref.: |
|
|
20,000 |
| Series 1993 (MBIA insured), 5.25%, 5/15/18 |
| 20,024 |
500,000 |
| Series 1997, 5.125%, 11/15/13 |
| 510,385 |
1,000,000 |
| Bell Co. Hlth. Fac. Dev. Corp. Retirement Fac. Rev. Series 1998 (Buckner Retirement Services, Inc. Obligated Group, Proj.), 5.00%, 11/15/11 |
| 1,021,960 |
|
| Beaumont HA Multifamily Mtg. Rev. Series 1993-A (Section 8): |
|
|
260,000 |
| 6.65%, 11/1/07 |
| 263,227 |
590,000 |
| 6.75%, 11/1/10 |
| 597,369 |
1,500,000 |
| Bexar Co. Hlth. Fac. Dev. Corp. Rev. Ref. Series 1993 (Incarnate Word Hlth. Svcs. Proj.) (FSA insured), 6.10%, 11/15/23 |
| 1,543,545 |
|
| Bexar Co. HFC Multifamily Hsg. Rev.: |
|
|
570,000 |
| Subordinated Series 2000-C (Honey Creek Apts. Proj.), 8.00%, 4/1/30 |
| 574,298 |
160,000 |
| Subordinated Series 2001-B (American Oppty. Hsg. Dublin Kingswood & Waterford Apts. Proj.), 7.50%, 12/1/14 |
| 164,853 |
545,000 |
| Bexar Co. Rev. Series 2000 (Venue Proj.)(MBIA insured), 5.75%, 8/15/22 |
| 572,343 |
650,000 |
| Brazos River Hbr. Nav. Dist Rev. Series 2002-B-2 (Dow Chemical Co. Proj.), 4.75%, 5/15/33 |
| 659,808 |
6,227,000 |
| Dallas HFC Multifamily Mtg. Rev. Series 1998-A (GNMA collateralized) (Towne Ctr. Apts. Proj.), 6.75%, 10/20/32 |
| 6,711,772 |
200,000 |
| Denison Hosp. Rev. Series 1997 (Texoma Med. Ctr., Inc. Proj.), 6.125%, 8/15/17 |
| 207,944 |
500,000 |
| Galveston Co. Hlth. Fac. Dev. Corp. Rev. Series 1995 (Devereux Foundation Proj.) |
| 510,435 |
500,000 |
| Garza Co. Public Hlth. Fac. Corp. Rev. Ref. Series 2005, 4.50%, 10/1/06 |
| 500,660 |
500,000 |
| Harris Co. Rev. Ref. Sr. Lien Series 2005-A (Toll Road Proj.) (FSA insured), 5.25%, 8/15/35 |
| 522,270 |
235,000 |
| Harris Co. Hlth. Fac. Dev. Corp. Hosp. Rev. Series 1998 (Hermann Hosp. Sys. Proj.) FSA insured), 5.25%, 6/1/27 |
| 242,995 |
|
| Hidalgo Co. Hlth. Svcs. Rev. Series 2005 (Mission Hosp., Inc. Proj.): |
|
|
255,000 |
| 4.00%, 8/15/06 |
| 254,860 |
515,000 |
| 4.00%, 2/15/07 |
| 513,888 |
700,000 |
| 5.00%, 8/15/19 |
| 702,674 |
750,000 |
| Houston Cmnty. College G.O. Ref. Series 2005, 5.00%, 2/15/12 |
| 757,230 |
475,000 |
| Keller Indpt. Sch. Dist. G.O. Unrefunded Series 1996-A, 5.125%, 8/15/25 |
| 477,004 |
|
| Kerrville Hlth. Fac. Dev. Corp. Hosp. Rev. Series 2005 (Sid Peterson Memorial Hosp. Proj.): |
|
|
655,000 |
| 4.125%, 8/15/10 |
| 646,367 |
1,500,000 |
| 5.45%, 8/15/35 |
| 1,506,750 |
500,000 |
| Lewisville Combination Contract Rev. Ref. Series 2004 (ACA insured), 5.75%, 9/1/12 |
| 536,090 |
65,328 |
| Midland HFC Single Family Mtg. Rev. Ref. Series 1992 A-2, 8.45%, 12/1/11 |
| 67,367 |
|
| Mesquite Hlth. Fac. Dev. Corp. Retirement Fac. Rev. (Christian Care Ctr. Proj.): |
|
|
625,000 |
| Series 2000-A, 7.00%, 2/15/10 |
| 667,369 |
750,000 |
| Series 2005, 5.00%, 2/15/15 |
| 758,318 |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
500,000 |
| North Central Hlth. Fac. Dev. Corp. Rev. Ref. Series 1995 (Baylor Hlth. Care Sys.), 5.50%, 5/15/13 |
| 510,840 |
7,245,000 |
| Nortex Hsg. Fin. Corp. Multifamily Hsg. Rev. Series 1999 (GNMA collateralized) (Highland Oaks Apts. Proj.), 6.75%, 9/20/32 |
| 7,789,027 |
500,000 |
| Red River Auth. Pollution Ctrl. Rev. Ref. Series 1991 (Ambac insured), 5.20%, 7/1/11 |
| 511,925 |
|
| Richardson Hosp. Auth. Rev. Ref. Series 1998 (Baylor/Richardson Proj.): |
|
|
585,000 |
| 5.50%, 12/1/18 |
| 602,796 |
1,375,000 |
| 5.625%, 12/1/28 |
| 1,409,884 |
1,000,000 |
| Sam Rayburn Muni Pwr. Agency Rev. Ref. Series 2002, 5.00%, 10/1/07 |
| 1,010,720 |
900,000 |
| San Antonio Hotel Occupancy Rev. Series 1996 (Henry Gonzalez Proj.) (FGIC insured), 5.70%, 8/15/26 |
| 923,931 |
|
| Tarrant Co. Hlth. Facs. Dev. Corp. Rev. Series 1997-A: |
|
|
750,000 |
| (Hlth. Resources Sys. Proj.), 5.25%, 2/15/22 |
| 780,503 |
315,000 |
| (So. Central Nursing Proj.), 6.00%, 1/1/37 |
| 342,030 |
|
| Tarrant Co. HFC Multifamily Hsg. Rev: |
|
|
530,000 |
| Senior Series 2001-A (Westridge Apts. Proj.), 5.50%, 6/1/11 (7) (8) |
| 251,872 |
490,000 |
| Subordinate Series 2001-C (Crossroads Apt. Proj.), 7.25%, 12/1/36 (7) (8) |
| 48,956 |
|
| Tomball Co. Hosp. Auth. Rev. Ref. Series 2005: |
|
|
500,000 |
| Series 2005, 4.00%, 7/1/06 |
| 499,950 |
250,000 |
| Series 2005, 5.00%, 7/1/10 |
| 255,400 |
1,000,000 |
| Series 2005, 5.00%, 7/1/11 |
| 1,017,000 |
|
| TX Affordable Hsg. Corp. Multifamily Hsg. Rev: |
|
|
735,000 |
| Senior Series 2001-A (NHT / GTEX Proj.)(MBIA insured), 4.10%, 10/1/08 |
| 734,015 |
740,000 |
| Junior Series 2001-B (NHT / GTEX Proj.), 6.75%, 10/1/16 (7) (8) |
| 96,341 |
|
| TX Dept. Hsg. & Cmnty. Affairs Multifamily Hsg. Rev.: |
|
|
850,000 |
| Senior Series 1996-A (Harbors & Plumtree Apts. Proj.), 6.35%, 7/1/16 |
| 869,185 |
3,610,000 |
| Senior Series 1996-A (Harbors & Plumtree Apts. Proj.), 6.45%, 7/1/26 |
| 3,689,059 |
845,000 |
| Subordinate Series 1996-C (Harbors & Plumtree Apts. Proj.), 7.375%, 7/1/26 |
| 859,999 |
730,000 |
| TX Public Property Fin. Corp. Mental Hlth. & Mental Retardation Rev. Series 1996, 6.20%, 9/1/16 |
| 742,366 |
230,000 |
| TX St. Student Hsg. Corp. Rev. Series 2002 (Midwestern St. Univ. Proj.), 5.50%, 9/1/12 |
| 234,844 |
|
| TX Water Dev. Brd. State Revolving Fund Sr. Lien Rev.: |
|
|
500,000 |
| Series 1996-A, 5.25%, 7/15/17 |
| 502,130 |
250,000 |
| Series 1996-B, 5.125%, 7/15/18 |
| 252,555 |
500,000 |
| Series 1997-B, 5.00%, 7/15/19 |
| 512,085 |
315,000 |
| Tyler Hlth. Facs. Dev. Corp. Rev. Series 1997-B (East TX Med. Ctr. Proj.), 5.60%, 11/1/27 |
| 328,822 |
400,000 |
| Weslaco Hlth. Fac. Dev. Series 2002 (Knapp Med. Ctr. Proj.), 5.00%, 6/1/07 |
| 403,248 |
|
|
|
| |
|
|
|
| 51,534,804 |
|
|
|
| |
Utah (0.7%) |
|
|
|
|
725,000 |
| Eagle Mountain Water & Sewer Rev. Ref. Series 2000 (ACA insured), 5.60%, 11/15/13 |
| 765,303 |
|
| Salt Lake Co. College Rev. (Westminster College Proj.): |
|
|
1,000,000 |
| Series 1997, 5.75%, 10/1/27 |
| 1,034,970 |
|
| Series 1999: |
|
|
120,000 |
| 5.15%, 10/1/11 |
| 124,830 |
125,000 |
| 5.20%, 10/1/12 |
| 129,455 |
130,000 |
| 5.25%, 10/1/13 |
| 134,467 |
240,000 |
| UT Hsg. Finance Agy. Multifamily Rev. Ref. Series 1996A (Section 8) (FHA insured), 6.10%, 7/1/22 |
| 247,106 |
|
|
|
| |
|
|
|
| 2,436,131 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 37 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Vermont (0.3%) |
|
|
|
|
|
| VT Educ. & Hlth. Bldgs. Financing Agency Rev.: |
|
|
420,000 |
| Series 1998 (Norwich Univ. Proj.), 5.13%, 7/1/09 |
| 431,533 |
150,000 |
| Series 2002A (Developmental & Mental Hlth. Proj.), 4.375%, 6/15/07 |
| 148,870 |
400,000 |
| Series 2003A (Vermont Law School Proj.), 5.00%, 1/1/13 |
| 402,964 |
|
|
|
| |
|
|
|
| 983,367 |
|
|
|
| |
Virginia (1.1%) |
|
|
|
|
415,000 |
| Alexandria Indl. Dev. Auth. Rev. Pollution Control Ref. Series 1994 (Potomac Electric Proj.) (MBIA insured), 5.375%, 2/15/24 |
| 415,535 |
250,000 |
| Chesterfield Co. Indl. Dev. Auth. Pollution Ctrl. Rev. Series 1987A Rmktg. (VA Elec. & Power Co. Proj.), 5.875%, 6/1/17 |
| 270,055 |
|
| Prince William Co. Indus. Dev. Auth. Educ. Fac. Rev. Series 2003 (Catholic Diocese Arlington): |
|
|
1,000,000 |
| 4.375%, 10/1/13 |
| 993,690 |
100,000 |
| 5.00%, 10/1/18 |
| 102,103 |
2,000,000 |
| Virginia St. Hsg. Dev. Auth. Comwlth. Mtg. Rev. Series 2001-H1 (MBIA insured), 5.375%, 7/1/36 |
| 2,095,160 |
|
|
|
| |
|
|
|
| 3,876,543 |
|
|
|
| |
Washington (0.6%) |
|
| ||
|
|
|
|
|
200,000 |
| Energy Northwest Wind Proj. Rev. Series 2001B, 4.55%, 7/1/06 |
| 200,164 |
500,000 |
| Skagit Co. Public Hosp. Dist. No. 001 Rev. Series 2005 (Skagit Valley Hosp. Proj.), 5.50%, 12/1/13 |
| 525,860 |
500,000 |
| WA G.O. Variable Purpose Series 2001-A (FSA insured), 5.00%, 7/1/22 |
| 519,190 |
260,000 |
| WA Hgr. Educ. Fac. Auth. Rev. Ref. Series 1998 (Univ. Puget Sound Proj.) (MBIA insured), 5.375%, 10/1/30 |
| 269,183 |
400,000 |
| WA Tobacco Settlement Fing. Corp Asset-Backed Rev. Series 2002, 5.00%, 6/1/08 |
| 406,040 |
350,000 |
| WA St. Pub. Pwr. Supply Sys. Nuclear Proj. No. 3 Rev. Ref. Series 1996-A (Ambac insured), 5.70%, 7/1/09 |
| 358,676 |
|
|
|
| |
|
|
|
| 2,279,113 |
|
|
|
| |
West Virginia (1.3%) |
|
| ||
3,500,000 |
| Pleasants Co. Pollution Ctrl. Rev. Series 1995C (Monongahela Pwr. Co.), 6.15%, 5/1/15 |
| 3,537,975 |
1,250,000 |
| WV Schl. Bldg. Auth. Rev. Ref. Cap. Impt. Series 1997-B (FSA insured), 5.40%, 7/1/17 |
| 1,299,525 |
|
|
|
| |
|
|
|
| 4,837,500 |
|
|
|
| |
Wisconsin (4.1%) |
|
|
|
|
|
| WI Hlth. & Educ. Fac. Auth. Rev.: |
|
|
550,000 |
| Series 1995 (Franciscan Sisters Proj.)(Connie Lee insured), 5.50%, 2/15/14 |
| 556,226 |
175,000 |
| Series 1996 (Meriter Hosp., Inc. Proj.), 6.00%, 12/1/06 |
| 176,354 |
850,000 |
| Ref. Series 1997B, (United Hlth. Grp., Inc. Proj.), 5.50%, 12/15/20 |
| 889,100 |
195,000 |
| Series 1998 (Lawrence Univ. Proj.), 5.125%, 4/15/28 |
| 195,027 |
420,000 |
| Series 1999 (FH Hlth. Care Dev. Inc Proj.), 5.625%, 11/15/09 |
| 430,878 |
|
| Series 1999 (Kenosha Hosp. & Med. Ctr., Inc. Proj.): |
|
|
670,000 |
| 5.00%, 5/15/06 |
| 670,931 |
705,000 |
| 5.10%, 5/15/07 |
| 713,516 |
740,000 |
| 5.15%, 5/15/08 |
| 755,562 |
820,000 |
| 5.35%, 5/15/10 |
| 852,997 |
865,000 |
| 5.45%, 5/15/11 |
| 899,885 |
1,655,000 |
| Series 1999A (Aurora Hlth. Care Proj), 5.60%, 2/15/29 |
| 1,694,025 |
200,000 |
| Series 1999B (Aurora Hlth. Care Proj), 5.50%, 2/15/15 |
| 206,278 |
500,000 |
| Series 1999B (Aurora Hlth. Care Proj)(ACA insured), 5.625%, 2/15/29 |
| 511,535 |
900,000 |
| Series 1999 (Divine Savior, Inc. Proj.)(ACA insured), 5.70%, 6/1/28 |
| 929,124 |
38
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
| Series 2001 (Agnesian Healthcare, Inc. Proj.): |
|
|
150,000 |
| 5.00%, 7/1/06 |
| 150,459 |
550,000 |
| 6.00%, 7/1/17 |
| 585,640 |
340,000 |
| 6.00%, 7/1/21 |
| 360,485 |
|
| Series 2003 (Synergy Hlth., Inc. Proj.): |
|
|
500,000 |
| 6.00%, 11/15/23 |
| 541,500 |
250,000 |
| 6.00%, 11/15/32 |
| 268,982 |
105,000 |
| Series 2004A (Three Pillars Sr. Living Proj.), 4.15%, 8/15/11 |
| 102,063 |
450,000 |
| Series 2004 (Blood Ctr. Southeastern Proj.), 5.50%, 6/1/24 |
| 471,663 |
600,000 |
| Series 2005 (Vernon Mem. Hlth. Care Inc. Proj.), 4.65%, 3/1/15 |
| 586,914 |
|
| Series 2006-A (Marshfield Clinic Proj.): |
|
|
375,000 |
| 5.00%, 2/15/11 |
| 386,325 |
2,000,000 |
| 5.375%, 2/15/34 |
| 2,070,200 |
|
|
|
| |
|
|
|
| 15,005,669 |
|
|
|
| |
Wyoming (0.2%) |
|
|
|
|
615,000 |
| Sweetwater Co. Pollution Ctrl. Rev. Ref. Series 1996A (Idaho Pwr. Co. Proj.), 6.05%, 7/15/26 |
| 630,430 |
|
|
|
| |
|
|
|
|
|
Total municipal bonds (cost: $364,654,564) |
| 356,583,900 | ||
|
| |||
|
|
|
|
|
Closed-End Mutual Funds (0.2%) (2) |
|
| ||
47,200 |
| BlackRock Municipal Target Term Trust |
| 472,000 |
7,000 |
| MBIA Cap/Claymore Managed Duration Investment Grade Municipal Fund |
| 89,390 |
200 |
| Van Kampen Muni Trust |
| 2,900 |
900 |
| Van Kampen Trust Investment Grade Muni Fund |
| 13,302 |
200 |
| Van Kampen Muni Opportunity Fund |
| 3,060 |
100 |
| Van Kampen Select Muni Fund |
| 1,264 |
|
|
|
| |
|
|
|
|
|
Total closed-end mutual funds (cost: $578,958) |
| 581,916 | ||
|
| |||
|
|
|
|
|
Short-Term Securities (1.3%) (2) |
|
| ||
4,760,996 |
| Dreyfus Tax-Exempt Cash Management Fund, 2.93% |
| 4,760,996 |
|
|
|
| |
Total short-term securities (cost: $4,760,996) |
|
| ||
|
|
| ||
Total investments in securities (cost: $369,994,518) (6) |
| $361,926,812 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 39 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
|
|
|
|
The Fund provided investors with a +4.46% total return for the year ended March 31, 2006 compared to a +2.14% return for the Lehman 5-Year Municipal Bond Index. As of March 31, 2006, the Fund’s 30-day SEC yield was 4.36% and its 12-month distribution rate was 4.08%.
Short and intermediate municipal bond yields increased throughout the year, the result of a rise in the general level of interest rates as the Fed continued its tightening program by raising the federal funds rate 200 basis points to 4.75% during the year. While it appears that this tightening cycle is coming to an end, the interest rate environment could remain difficult for the remainder of the year. Light issuance in Minnesota helped offset some of the negative impact of this rise in rates. In fact, despite the challenging interest rate environment, the Fund’s net asset value was remarkably stable during the year, rising from $10.09 at March 31, 2005 to $10.12 at March 31, 2006. The Fund experienced an increase in net assets over the past year from $233.0 million to $263.3 million.
The Fund’s most significant sector shifts during the year increased exposure to healthcare securities from 19% to 23%, while reducing emphasis on multi-family housing bonds from 28% to 23%. Much of the reduction in multi-family housing was the result of advance and current refunding activity by issuers. Both healthcare and multi-family housing provided returns far in excess of the benchmark during the year, and all of the Fund’s sectors outperformed the benchmark return. The Fund remains overweighted in healthcare and multi-family housing and should benefit from stable to improving fundamentals in these sectors in the coming year. We do not anticipate significant sector shifts in the coming year, but will, as always, remain opportunistic with respect to security selection. The Fund’s overall credit quality has experienced little change over the past year, remaining at single-A.
We have maintained the Fund’s average life duration close to 4.0 years over the past year to position the Fund defensively for the rising interest rate environment. Since it appears that the Fed may be at the end of its tightening cycle, we anticipate that we will lengthen duration to lock in higher yields for the Fund. Demand should remain strong for lower-rated and non-rated bonds as investors reach for yield in this light issuance environment, which should benefit the Fund’s performance.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The investment objective of the Minnesota Tax-Free Income Fund is to provide a high level of current income exempt from federal regular income tax and Minnesota regular personal income tax as is consistent with the preservation of capital.
During normal market conditions, the Fund invests 100% of its net assets in municipal securities that generate interest income that is exempt from regular federal income tax and Minnesota regular personal income tax. The Fund anticipates that substantially all of its distributions to its shareholders will be exempt as such. For investors subject to the alternative minimum tax (“AMT”), up to 20% of the Fund’s income may be alternative minimum taxable income.
|
PORTFOLIO SUMMARY |
|
|
|
|
|
Net Assets Value 3/31/06: |
|
| $10.12 Per Share | |
3/31/05: |
|
| $10.09 Per Share | |
Total Net Assets: |
|
| $ 263.3 Million | |
30-day SEC Yield: |
|
| 4.36% | |
Tax Equivalent Yield: |
|
| 7.28%(1) | |
12-Month Distribution Rate: |
|
| 4.08% | |
Average Maturity: |
|
| 13.7 Years |
|
Duration to Estimated Avg. Life: |
|
| 4.0 Years(2) | |
Implied Duration: |
|
| 3.7 Years(2) |
|
|
(1) | For individuals in the 35.0% federal tax and 7.85% MN tax brackets. |
(2) | See next page. |
|
PORTFOLIO STRUCTURE |
40
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|
|
|
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| |
|
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| ||
|
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| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||
|
|
|
|
|
|
|
|
| |||
|
| Sit |
| Lehman |
| Lipper |
| ||||
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| 0.61 | % |
| 0.02 | % |
| 0.26 | % |
| |
6 Month** |
| 1.63 |
|
| 0.32 |
|
| n/a |
|
| |
1 Year |
| 4.46 |
|
| 2.14 |
|
| 3.74 |
|
| |
5 Years |
| 4.79 |
|
| 4.04 |
|
| 4.72 |
|
| |
10 Years |
| 5.00 |
|
| 4.78 |
|
| 5.07 |
|
| |
Inception |
| 5.18 |
|
| 4.81 |
|
| 4.88 |
|
| |
(12/1/93) |
|
|
|
|
|
|
|
| |||
| CUMULATIVE TOTAL RETURNS* |
| |||||||||
|
|
|
|
|
|
|
|
| |||
|
| Sit |
| Lehman |
| Lipper |
| ||||
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| 4.46 | % |
| 2.14 | % |
| 3.74 | % |
| |
5 Years |
| 26.39 |
|
| 21.88 |
|
| 25.92 |
|
| |
10 Years |
| 62.92 |
|
| 59.58 |
|
| 64.04 |
|
| |
Inception |
| 86.43 |
|
| 78.46 |
|
| 80.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 3/31/06. |
|
|
|
| **Not annualized. |
| |||||
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman 5-Year Municipal Bond Index. The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds. |
|
(2) Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/1/93) and held until 3/31/06 would have grown to $18,643 in the Fund or $17,846 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
41
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
Municipal Bonds (94.9%) (2) |
|
| ||
Education/Student Loan (6.7%) |
|
| ||
4,200,000 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 5.46%, 1/1/28 |
| 4,289,586 |
1,000,000 |
| Minneapolis Rev. Series 1997-A (Univ. Gateway Proj.), 5.25%, 12/1/17 |
| 1,023,800 |
|
| Minneapolis Educ. Fac. Lease Rev. Series 2006-A (Seed/Harvest Prep. Proj.) (LOC-U.S. Bank): |
|
|
775,000 |
| 5.125%, 1/1/16 |
| 771,412 |
875,000 |
| 6.25%, 1/1/21 |
| 869,899 |
|
| Minnesota Higher Educ. Fac. Auth. Rev.: |
|
|
750,000 |
| Series 1998-4T (College of St. Benedict), 5.35%, 3/1/20 |
| 754,117 |
100,000 |
| Series 1998-4R (St. Olaf College), 5.25%, 10/1/23 |
| 101,206 |
458,000 |
| Lease Rev. Series 1999-5A (Concordia University), 5.25%, 4/25/14 |
| 459,502 |
700,000 |
| Series 1999-4Y (Augsburg College), 5.05%, 10/1/13 |
| 712,453 |
150,000 |
| Series 1999-4Y (Augsburg College), 5.20%, 10/1/16 |
| 152,709 |
75,000 |
| Series 1999-4Y (Augsburg College), 5.30%, 10/1/27 |
| 76,616 |
700,000 |
| Series 2005-6C (Augsburg College), 5.00%, 5/1/23 |
| 714,434 |
100,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 4.875%, 10/1/09 |
| 100,932 |
275,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 5.20%, 10/1/13 |
| 277,365 |
100,000 |
| Series 2000-5D (College Art & Design), 5.75%, 5/1/08 |
| 103,495 |
50,000 |
| Series 1998-4T (St. Benedict College), 5.125%, 3/1/13 |
| 50,219 |
270,000 |
| Series 2004-5U (St. Mary’s Univ.), 3.75%, 10/1/13 |
| 259,643 |
1,400,000 |
| Series 2006-6I (Univ. St. Thomas), 5.00%, 4/1/23 |
| 1,462,762 |
|
| Moorhead Educ. Fac. Rev. Series 2005-A (Concordia College Corp. Proj.): |
|
|
665,000 |
| 4.00%, 12/15/06 |
| 667,055 |
1,115,000 |
| 5.00%, 12/15/20 |
| 1,166,413 |
310,000 |
| Northfield Lease Rev. Series 1999-A (Village School Proj.), 7.50%, 12/1/24 |
| 254,367 |
550,000 |
| Ramsey Lease Rev. Series 2004-A (Pact Charter School Proj.), 5.65%, 12/1/13 |
| 555,060 |
|
| St. Paul Hsg. & Redev. Auth. Lease Rev.: |
|
|
120,000 |
| Series 1999 (St. Paul Academy & Summit School Proj.), 5.50%, 10/1/24 |
| 124,318 |
815,000 |
| Series 2001-A (Cmty. of Peace Academy Proj.), 6.375%, 12/1/11 |
| 815,864 |
750,000 |
| Series 2001-A (Cmty. of Peace Academy Proj.), 7.00%, 12/1/15 |
| 760,642 |
350,000 |
| Series 2001-A (Cmty. of Peace Academy Proj.), 7.375%, 12/1/19 |
| 358,155 |
415,000 |
| Series 2002-A (New Spirit Charter School Proj.), 6.50%, 12/1/12 |
| 419,640 |
100,000 |
| Victoria Private School Fac. Rev. Series 1999-A (Holy Family Catholic H.S. Proj.), 5.20%, 9/1/11 |
| 100,882 |
|
| Winona Port. Auth. Lease Rev. Series 1999-A (Bluffview Montessori School Proj.): |
|
|
80,000 |
| 5.80%, 12/1/06 |
| 80,913 |
85,000 |
| 5.90%, 12/1/07 |
| 87,235 |
165,000 |
| 8.00%, 12/1/24 |
| 175,641 |
|
|
|
| |
|
|
|
| 17,746,335 |
|
|
|
| |
Escrowed To Maturity/Prerefunded (6.2%) |
|
| ||
100,000 |
| Cloquet Hsg. Fac. Rev. Series 2001-A (HADC Cloquet, LLC Proj.), 7.50%, 2/1/17 |
| 103,853 |
|
| Cloquet Multifamily Hsg. Rev. Refunding Series 2001-A (HADC Proj.): |
|
|
60,000 |
| 6.50%, 2/1/07 |
| 61,249 |
75,000 |
| 7.10%, 2/1/10 |
| 77,647 |
175,000 |
| Dakota Co. Hsg. & Redev. Auth. Multifamily Hsg. Rev. Refunding (Walnut Trails Apts. Proj.), Subordinate Series 1995-C, 9.00%, 1/20/15 (4) |
| 186,933 |
2,950,000 |
| Little Canada Multifamily Hsg. Rev. Series 1997-A (Hsg. Alt. Dev. Co. Proj.), 6.10%, 12/1/17 |
| 3,028,234 |
|
| Minneapolis Cmty. Dev. Agy. Ltd. Tax Common Bond Fund: |
|
|
1,000,000 |
| Series 2001-G3 (LOC-U.S. Bank), 5.35%, 12/1/21 |
| 1,075,820 |
175,000 |
| Series 2001-G3 (LOC-U.S. Bank), 5.45%, 12/1/31 |
| 189,152 |
45,000 |
| Minneapolis G.O. Series 1999 (Parking Ramp Proj.), 5.125%, 12/1/16 |
| 47,241 |
|
| Minnesota Higher Educ. Fac. Auth. Rev.: |
|
|
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
125,000 |
| Series 1992-3L1 (Carleton College), 5.75%, 11/1/12 |
| 125,231 |
110,000 |
| Series 1996-4A1 (University of St. Thomas), 5.625%, 10/1/21 |
| 111,148 |
425,000 |
| Series 1996-4F1 (Augsburg College), 6.25%, 5/1/23 |
| 434,014 |
50,000 |
| Series 1997-4J (Macalester College), 5.40%, 3/1/09 |
| 50,815 |
800,000 |
| Series 1997-4L (St. John’s University), 5.35%, 10/1/17 |
| 820,264 |
400,000 |
| Series 1997-4L (St. John’s University), 5.40%, 10/1/22 |
| 410,424 |
|
| Minneapolis Student Hsg. Rev. Series 2000 (Riverton Community Hsg. Proj.): |
|
|
125,000 |
| 6.80%, 7/1/10 |
| 138,112 |
240,000 |
| 6.90%, 7/1/11 |
| 266,026 |
|
| MN Public Facs. Auth. Wtr. Pollution Ctrl. Rev.: Series 1997: |
|
|
215,000 |
| Series 1997, 5.00%, 3/1/12 |
| 217,814 |
105,000 |
| Series 1997, 5.00%, 3/1/16 |
| 106,374 |
|
| MN Agr. & Econ. Dev. Board Rev. Series 2000-A (Fairview Hlth. Care System Proj.): |
|
|
320,000 |
| 6.375%, 11/15/22 |
| 357,155 |
360,000 |
| 6.375%, 11/15/29 |
| 401,800 |
630,000 |
| Puerto Rico Childrens Trust Fund Tobacco Settlement Rev. Series 2000, 5.75%, 7/1/20 |
| 658,577 |
5,000,000 |
| Puerto Rico Commonwealth Infrastruc. Fin. Auth. Special Obligation Series 2000-A, 5.50, 10/1/32 |
| 5,365,000 |
620,000 |
| Steele Co. Hlth. Care Fac. Gross. Rev. Prerefunded Series 2000 (Elderly Hsg. Proj.), 6.625%, 6/1/20 |
| 667,306 |
1,430,000 |
| Western MN Muni Pwr. Agy. Series 1979 (MBIA-IBC insured), 6.60%, 1/1/10 |
| 1,520,076 |
|
|
|
| |
|
|
|
| 16,420,265 |
|
|
|
| |
General Obligation (3.2%) |
|
| ||
280,000 |
| Anoka Co. G.O. Series 2006-B, 3.25%, 2/1/07 |
| 279,359 |
40,000 |
| Apple Valley Equipment Certficates G.O. Series 2004, 2.50%, 10/1/06 |
| 39,780 |
200,000 |
| Barnesville Impt. G.O. Series 2002, 5.00%, 2/1/23 |
| 204,834 |
25,000 |
| Cold Spring G.O. Series 1998-B, 4.55%, 12/1/08 |
| 25,032 |
75,000 |
| Cold Spring G.O. Series 2000, 5.15%, 2/1/09 |
| 75,706 |
50,000 |
| Hutchinson ISD No. 423 G.O. Series 1996-A, 5.85%, 2/1/18 |
| 51,874 |
50,000 |
| Little Falls G.O. Series 1999-A, 5.00%, 2/1/11 |
| 50,430 |
1,685,000 |
| Minneapolis-St. Paul Metro Apartments Cmnty. G.O. Series 1998-13, 5.00%, 1/1/10 |
| 1,756,461 |
4,000,000 |
| MN G.O. Series 1997, 4.90%, 8/1/14 |
| 4,065,400 |
780,000 |
| New Ulm ISD No. 088 Refunding G.O. Series 1998, 4.35%, 2/1/17 |
| 781,989 |
225,000 |
| North St. Paul Maplewood ISD No. 622 G.O. Series 1996-A, 5.125%, 2/1/20 |
| 227,522 |
60,000 |
| North St. Paul Maplewood ISD No. 622 G.O. Series 1996-A, 5.125%, 2/1/25 |
| 60,574 |
150,000 |
| Sauk Rapids Tax Increment G.O. Series 1997-B, 5.25%, 8/1/12 |
| 150,736 |
130,000 |
| St. Anthony G.O. Series 2004-B, 1.55%, 2/1/07 |
| 129,769 |
290,000 |
| St. Paul Cap. Impt. G.O. Series 2005, 4.00%, 9/1/06 |
| 290,673 |
|
| 4.00%, 9/1/06 |
|
|
100,000 |
| St. Paul Street Impt. Special Assessment G.O. Series 2000-B, 5.30%, 3/1/12 |
| 102,875 |
30,000 |
| Winona Water & Sewer G.O. Series 1998-C, 4.90%, 2/1/13 |
| 30,030 |
|
|
|
| |
|
|
|
| 8,323,044 |
|
|
|
| |
Hospital/Health Care (22.7%) |
|
| ||
250,000 |
| Aitkin Hlth. Care Fac. Rev. Series 2001 (Riverwood Hlth. Care Ctr. Proj.), 6.25%, 2/1/07 |
| 253,170 |
|
| Alexandria Hlth. Care Fac. Rev. Series 2002-B (BSM Property - Bethany Home Proj.): |
|
|
375,000 |
| 4.65%, 7/1/06 |
| 374,764 |
375,000 |
| 4.95%, 7/1/07 |
| 375,697 |
|
| Bemidji Hosp. Fac. Rev. Refunding (North Country Hlth. Proj.): |
|
|
110,000 |
| Series 1995, 6.05%, 9/1/24 |
| 110,148 |
1,035,000 |
| Series 1996, 5.625%, 9/1/21 |
| 1,060,947 |
1,775,000 |
| Breckenridge Rev. Series 2004-A (Catholic Hlth. Initiatives Proj.), 5.00%, 5/1/30 |
| 1,830,877 |
240,000 |
| Cambridge Hsg. & Hlth. Care Fac. Rev. Series 1998-C (Grandview West Proj.), 5.25%, 10/1/08 |
| 242,741 |
|
|
See accompanying notes to portfolios of investments on page 58. | 43 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
840,000 |
| Columbia Heights Multifamily & Health Care Fac. Rev. Series 1998 |
|
|
|
| (Crest View Corp. Proj.), 5.75%, 9/1/11 |
| 838,874 |
|
| Crookston Nursing Home & Multifamily Hsg. Rev Series 2002-A (Villa St. Vincent Proj.): |
|
|
95,000 |
| 4.75%, 9/1/08 |
| 95,968 |
75,000 |
| 5.50%, 9/1/11 |
| 77,145 |
|
| Cuyuna Range Hosp. Dist. Hlth. Fac. Gross Rev.: |
|
|
|
| Series 1999-A: |
|
|
1,000,000 |
| 5.75%, 6/1/14 |
| 1,022,070 |
1,000,000 |
| 6.00%, 6/1/19 |
| 1,022,220 |
235,000 |
| Series 2005, 4.50%, 6/1/13 |
| 233,183 |
1,500,000 |
| Detroit Lakes Hsg. Rev. Ref. Series 2004-E (Mankato Lutheran Proj.), 4.25%, 8/1/34 |
| 1,503,240 |
455,000 |
| Detroit Lakes Hsg. & Hlth. Facs. Rev. Ref. Series 2004-A (CDL Homes Proj.), 4.00%, 8/1/34 |
| 444,931 |
400,000 |
| Duluth Econ. Dev. Auth. Hlth. Care Fac. Rev. Series 2002 (St. Luke’s Hosp. Proj.), 6.00%, 6/15/12 |
| 407,664 |
996,950 |
| Duluth Sr. Hsg. Loan Participation (Lakeshore Proj.) Series 2004, 4.00%, 8/20/36 |
| 997,518 |
59,203 |
| Duluth Hsg. & Redev. Auth. Sr. Hsg. Fac. Loan Participation (Lakeshore Proj.) |
|
|
|
| Series 2005, 5.20%, 12/20/35 |
| 58,840 |
|
| Elk River Rev. Series 1998 (Care Choice Member Proj.): |
|
|
1,000,000 |
| 5.60%, 8/1/13 |
| 1,011,660 |
160,000 |
| 5.75%, 8/1/23 |
| 161,037 |
850,000 |
| Fergus Falls Hlth. Care Fac. Auth. Rev. Series 1995 (Lake Region Hosp. Corp.), 6.40%, 12/1/15 |
| 868,351 |
|
| Glencoe Hlth. Care Fac. Rev. Series 2005 (Glencoe Regional Hlth. Svcs. Proj.): |
|
|
280,000 |
| 3.60%, 4/1/08 |
| 277,698 |
915,000 |
| 4.15%, 4/1/12 |
| 900,351 |
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Augustana Home of Hastings Proj.): |
|
|
115,000 |
| 5.10%, 11/1/09 |
| 113,866 |
120,000 |
| 5.20%, 11/1/10 |
| 118,678 |
135,000 |
| 5.40%, 11/1/12 |
| 133,064 |
140,000 |
| 5.50%, 11/1/13 |
| 138,246 |
1,000,000 |
| Maple Grove Hlth. Care Fac. Rev. Series 2005 (North Memorial Hlth. Care Proj.), 5.00%, 9/1/20 |
| 1,034,120 |
|
| Maplewood Hlth. Care Fac. Rev. Refunding Series 2005-A (VOA Care Centers Proj.): |
|
|
100,000 |
| 4.00%, 10/1/06 |
| 100,025 |
250,000 |
| 4.00%, 10/1/07 |
| 249,362 |
255,000 |
| 4.125%, 10/1/08 |
| 253,297 |
300,000 |
| 4.375%, 10/1/09 |
| 298,539 |
|
| Marshall Medical Center Gross Rev. (Weiner Memorial Medical Center Proj.): |
|
|
305,000 |
| Series 1999, 5.65%, 11/1/13 |
| 317,529 |
320,000 |
| Series 1999, 5.70%, 11/1/14 |
| 333,078 |
150,000 |
| Series 2003-B, 4.85%, 11/1/11 |
| 154,329 |
50,000 |
| Series 2003-A, 5.00%, 11/1/14 |
| 51,745 |
850,000 |
| Series 2003-A, 5.85%, 11/1/23 |
| 915,084 |
100,000 |
| Series 2003-A, 6.00%, 11/1/28 |
| 107,745 |
|
| Minneapolis & St. Paul Hsg. & Redev. Auth. Hlth. Care Sys. Rev. Series 2003 (Health Partners Proj.): |
|
|
300,000 |
| 4.50%, 12/1/06 |
| 301,410 |
1,500,000 |
| 4.50%, 12/1/07 |
| 1,512,990 |
1,000,000 |
| 5.25%, 12/1/08 |
| 1,029,660 |
750,000 |
| 5.25%, 12/1/12 |
| 788,745 |
700,000 |
| 5.25%, 12/1/13 |
| 738,416 |
1,150,000 |
| 5.00%, 12/1/14 |
| 1,190,181 |
500,000 |
| 5.875%, 12/1/29 |
| 532,120 |
150,000 |
| Minneapolis Hsg. & Hlth. Care Facs. Rev. Series 1997 (Augustana Chapel View Homes Proj.), |
|
|
|
| 6.75%, 6/1/27 |
| 150,290 |
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
|
| Minneapolis Hlth. Care Fac. Rev.: |
|
|
780,000 |
| Series 1999 (Shelter Care Foundation Proj.), 6.00%, 4/1/10 |
| 775,094 |
|
| Series 2004-A (Augustana Chapel View Homes Proj.): |
|
|
280,000 |
| 4.00%, 1/1/07 |
| 278,006 |
315,000 |
| 5.20%, 1/1/11 |
| 313,145 |
500,000 |
| 5.75%, 1/1/19 |
| 505,945 |
500,000 |
| 5.80%, 1/1/24 |
| 506,355 |
|
| Series 2005 (Jones-Harrison Residence Proj.): |
|
|
105,000 |
| 3.50%, 4/1/07 |
| 104,875 |
110,000 |
| 3.50%, 10/1/07 |
| 109,796 |
1,470,000 |
| 5.40%, 10/1/25 |
| 1,459,490 |
|
| Series 2005-E (Augustana Chapel View Homes Proj.): |
|
|
190,000 |
| 4.00%, 6/1/08 |
| 190,304 |
200,000 |
| 4.20%, 6/1/09 |
| 200,862 |
205,000 |
| 4.40%, 6/1/10 |
| 206,105 |
220,000 |
| 4.55%, 6/1/11 |
| 221,690 |
240,000 |
| 4.80%, 6/1/13 |
| 241,546 |
250,000 |
| 4.90%, 6/1/14 |
| 251,435 |
255,000 |
| 5.00%, 6/1/15 |
| 257,188 |
270,000 |
| 5.10%, 6/1/16 |
| 272,824 |
285,000 |
| 5.25%, 6/1/17 |
| 288,448 |
|
| MN Agr. & Econ. Dev. Board Hlth. Care Rev.: |
|
|
|
| Series 1999 (Benedictine Care Centers Proj.): |
|
|
115,000 |
| 5.45%, 2/1/09 |
| 115,821 |
120,000 |
| 5.45%, 8/1/09 |
| 120,924 |
120,000 |
| 5.50%, 2/1/10 |
| 121,008 |
125,000 |
| 5.50%, 8/1/10 |
| 126,105 |
|
| MN Agr. & Econ. Dev. Board Rev.: |
|
|
|
| Series 2000 (Evangelical Lutheran Good Samaritan Society Proj.): |
|
|
410,000 |
| 5.80%, 8/1/08 |
| 423,698 |
750,000 |
| 6.55%, 8/1/16 |
| 817,635 |
770,000 |
| Series 2002-B (Principal Custody Receipts Proj.), zero coupon, 3.85% effective yield, 11/15/22 |
| 613,698 |
|
| Series 2002 (Evangelical Lutheran Good Samaritan Society Proj.): |
|
|
345,000 |
| 5.40%, 2/1/09 |
| 354,974 |
220,000 |
| 5.50%, 2/1/12 |
| 231,128 |
|
| Series 2000-A (Fairview Hlth. Care Sys. Proj.): |
|
|
10,000 |
| 6.375%, 11/15/22 |
| 10,847 |
20,000 |
| 6.375%, 11/15/29 |
| 21,520 |
|
| Moose Lake Cmnty. Hosp. Dist. Hlth. Facs. Rev. Ref. Series 2005-A (Crossover Proj.): |
|
|
110,000 |
| 4.10%, 12/1/10 |
| 109,556 |
225,000 |
| 4.40%, 12/1/14 |
| 224,698 |
|
| New Hope Hlth. Care Facs. Rev. Series 1999 (St. Therese Home, Inc. Proj.): |
|
|
45,000 |
| Series 2003-B, 3.00%, 10/1/06 |
| 44,740 |
300,000 |
| Series 2003-A, 5.90%, 10/1/23 |
| 309,300 |
|
| New Hope Hlth. Care Facs. Rev. (MN Masonic Home North Ridge Proj.): |
|
|
1,000,000 |
| 5.90%, 3/1/19 |
| 1,034,270 |
425,000 |
| 5.875%, 3/1/29 |
| 434,146 |
|
| North Oaks Presbyterian Loan Participation: |
|
|
960,571 |
| Series 2004-B, 4.25%, 12/15/34 |
| 963,097 |
692,377 |
| Series 2004-C, 4.38%, 12/15/34 |
| 694,198 |
462,382 |
| Series 2004-D, 4.75%, 12/15/34 |
| 462,534 |
|
|
See accompanying notes to portfolios of investments on page 58. | 45 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
|
| Northfield Hospital Rev. Series 2001-C: |
|
|
1,080,000 |
| 6.00%, 11/1/13 |
| 1,149,455 |
50,000 |
| 6.00%, 11/1/21 |
| 52,956 |
3,100,000 |
| 6.00%, 11/1/26 |
| 3,255,403 |
|
| Olmsted Co. Hlth. Care Fac. Rev. Series 1998 (Olmsted Medical Ctr. Proj.): |
|
|
775,000 |
| 5.45%, 7/1/13 |
| 790,035 |
900,000 |
| 5.55%, 7/1/19 |
| 915,201 |
|
| Pine Island Hlth. Care Facs. Rev. Series 2001 (Olmsted Med. Ctr. Proj.): |
|
|
155,000 |
| 4.90%, 7/1/09 |
| 157,065 |
240,000 |
| 5.00%, 7/1/10 |
| 243,319 |
90,000 |
| Rochester Hlth. Care Fac. Rev. G.O. Series 1998-A (Mayo Foundation Proj.), 5.50%, 11/15/27 |
| 93,493 |
|
| Rochester Hlth. Care & Hsg. Rev. Series 2003-A (Samaritan Bethany Inc. Proj.): |
|
|
160,000 |
| 3.25%, 8/1/06 |
| 159,400 |
500,000 |
| 6.25%, 8/1/19 |
| 515,325 |
|
| Shakopee Hlth. Care Facs. Rev. Series 2004 (St. Francis Regl. Med. Ctr. Proj.): |
|
|
315,000 |
| 4.00%, 9/1/06 |
| 315,173 |
125,000 |
| 5.10%, 9/1/25 |
| 127,810 |
2,475,000 |
| 5.25%, 9/1/34 |
| 2,536,974 |
1,500,000 |
| Stillwater Hlth. Care Rev. Series 2005 (Hlth. Sys. Obligation Proj.), 5.00%, 6/1/25 |
| 1,524,165 |
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 1998 (Regions Hosp. Proj.): |
|
|
800,000 |
| 5.00%, 5/15/08 |
| 815,544 |
250,000 |
| 5.00%, 5/15/10 |
| 255,775 |
50,000 |
| 5.00%, 5/15/11 |
| 51,017 |
1,340,000 |
| 5.20%, 5/15/13 |
| 1,369,440 |
2,050,000 |
| 5.25%, 5/15/18 |
| 2,085,424 |
605,000 |
| 5.30%, 5/15/28 |
| 611,298 |
1,000,000 |
| St. Paul Hsg. & Redev. Auth. Hosp. Rev. Series 2005 (Health East Proj.), 5.25%, 11/15/14 |
| 1,022,620 |
960,000 |
| St. Paul Hsg. & Redev. Auth. Nursing Home Dev. Rev. Refunding Series 1996-C |
|
|
|
| (Franciscan Hlth. Cmmty. Proj., St. Mary’s Home), 7.00%, 7/1/21 |
| 963,533 |
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2005 (Gillette Childrens Hosp. Proj.): |
|
|
200,000 |
| 5.00%, 2/1/07 |
| 202,316 |
300,000 |
| 4.00%, 2/1/11 |
| 296,172 |
200,000 |
| 5.00%, 2/1/13 |
| 204,774 |
225,000 |
| 5.00%, 2/1/14 |
| 228,733 |
400,000 |
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2001A (Model Cities Hlth. Ctr. Proj.), 6.50%, 11/1/11 |
| 413,512 |
1,140,000 |
| St. Paul Port Auth. Lease Rev. Series 2005A (Health East Midway Campus Proj.), 5.00%, 5/1/10 |
| 1,148,653 |
150,000 |
| White Bear Lake First Mtg. Rev. Series 2004 (Health East Care Ctr. Proj.), 2.75%, 11/1/06 |
| 148,704 |
|
|
|
| |
|
|
|
| 59,801,907 |
|
|
|
| |
Industrial / Pollution Control (7.0%) |
|
| ||
1,680,000 |
| Anoka Co. Solid Waste Disp. Rev. Series 1987-A (Natl. Rural Util. Proj.), 6.95%, 12/1/08 (4) |
| 1,686,989 |
1,190,000 |
| Burnsville Solid Waste Rev. Refunding Series 2003-A (Freeway Transfer Inc. Proj.), 4.15%, 4/1/10 (4) |
| 1,159,405 |
500,000 |
| Cohasset Pollution Ctrl. Rev. Refunding Series 2004 (Allete, Inc. Proj.), 4.95%, 7/1/22 |
| 501,440 |
655,000 |
| East Grand Forks Industrial Dev. Rev. Refunding Series 2001-B (Am. Crystal Sugar Proj.), 5.40%, 4/1/11 |
| 669,331 |
180,000 |
| Guam Economic Dev. Auth. Tobacco Settlement Asset-Backed Series 2001-A, 5.00%, 5/15/22 |
| 182,146 |
1,000,000 |
| Guam Econ. Dev. Auth. Tobacco Settlement Asset-Backed Rev. Series 2001-B, zero Coupon, 5.20% Effective Yield on Purchase Date, 5/15/15 |
| 920,680 |
|
| Laurentian Energy Auth. MN Cogeneration Rev. Series 2005-A: |
|
|
940,000 |
| 4.00%, 12/1/07 |
| 932,640 |
650,000 |
| 4.00%, 12/1/08 |
| 640,490 |
965,000 |
| 4.00%, 12/1/09 |
| 942,631 |
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
|
| MN Public Facs. Auth. Water Pollution Ctrl. Rev.: |
|
|
85,000 |
| Series 1997, 5.00%, 3/1/12 |
| 86,007 |
45,000 |
| Series 1997, 5.00%, 3/1/16 |
| 45,517 |
1,500,000 |
| Series 1998, 5.00%, 3/1/14 |
| 1,534,590 |
185,000 |
| Series 2001-A, 5.00%, 3/1/19 |
| 193,688 |
|
| Owatonna Industrial Dev. Rev. Series 1997 (Slidell, Inc. Proj.): |
|
|
280,000 |
| 7.25%, 5/1/14 (4)(7)(8) |
| 167,930 |
505,000 |
| 7.375%, 5/1/17 (4)(7)(8) |
| 302,778 |
20,000 |
| 7.375%, 5/1/20 (4)(7)(8) |
| 11,989 |
10,000 |
| 7.50%, 5/1/24 (7)(8) |
| 5,994 |
525,000 |
| Puerto Rico Indus. Tourist, Educ., Medical and Environmental Control Facs. Financing Auth. |
|
|
|
| Industrial Rev. Series 1998A (Guaynabo Warehouse for Emergencies Proj.), 4.35%, 7/1/06 |
| 525,478 |
|
| Puerto Rico Childrens Trust Fund Tobacco Settlement Rev.: |
|
|
300,000 |
| Series 2002, 4.00%, 5/15/10 |
| 297,516 |
2,075,000 |
| Series 2002, 5.375%, 5/15/33 |
| 2,117,662 |
465,000 |
| Roseville Dev. Rev. Refunding Series 2004 (Roseville Office Plaza Proj.), 4.625%, 8/1/12 |
| 465,684 |
265,000 |
| Sauk Centre Industrial Dev. Rev. Series 1998 (Seluemed LLP Proj.)(LOC First Trust), 5.75%, 4/1/18 (4) |
| 265,360 |
1,700,000 |
| Seaway Port Auth. Duluth Dock & Wharf Rev. Refunding Series 2004 (Cargill, Inc. Proj.), 4.20%, 5/1/13 |
| 1,692,435 |
|
| St. Paul Hsg. & Redev. Auth. District Cooling Rev. Series 1998-J: |
|
|
105,000 |
| 4.75%, 3/1/08 |
| 106,521 |
95,000 |
| 5.125%, 3/1/12 |
| 97,588 |
500,000 |
| 5.35%, 3/1/18 |
| 512,520 |
|
| Virgin Islands Tobacco Settlement Financing Corp. Asset-Backed Rev. Series 2001: |
|
|
750,000 |
| zero Coupon, 4.95% Effective Yield on Purchase Date, 5/15/14 |
| 682,597 |
1,610,000 |
| 5.00%, 5/15/21 |
| 1,609,903 |
|
|
|
| |
|
|
|
| 18,357,509 |
|
|
|
| |
Insured (6.8%) |
|
|
|
|
50,000 |
| Bemidji ISD No. 031 G.O. Series 1998 (FSA insured), 5.00%, 4/1/19 |
| 50,652 |
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Regina Med. Ctr.)(ACA insured): |
|
|
565,000 |
| 5.25%, 9/15/18 |
| 572,808 |
275,000 |
| 5.30%, 9/15/28 |
| 278,080 |
240,000 |
| Hermantown Econ. Dev. Auth. Sales Tax Rev. Series 1998 (MBIA insured), 4.90%, 2/1/18 |
| 245,141 |
20,000 |
| Itasca Co. ISD No. 318 G.O. Series 1996 (MBIA insured), 5.20%, 2/1/10 |
| 20,025 |
|
| Minneapolis & St. Paul Hsg. & Redev. Auth. Hlth. Care Sys. Rev. Series 1993-A |
|
|
|
| (Healthspan Hlth. Sys. Proj.) (Ambac insured): |
|
|
175,000 |
| 5.00%, 11/15/13 |
| 175,168 |
3,265,000 |
| 4.75%, 11/15/18 |
| 3,267,122 |
|
| Minneapolis & St. Paul Metro Airport Comm. Airport Rev. (Ambac insured): |
|
|
390,000 |
| Series 1998-A, 5.00%, 1/1/22 |
| 400,678 |
380,000 |
| Series 1998-A, 5.00%, 1/1/30 |
| 386,593 |
1,650,000 |
| Series 1998-B, 5.25%, 1/1/13 (4) |
| 1,696,150 |
615,000 |
| MN HFA Single Family Mtg. Rev. Series 2001-A (MBIA insured), 5.35%, 7/1/17 |
| 630,430 |
500,000 |
| NE Metro Intermediate School Dist. No. 916 C.O.P. Series 2004, 4.25%, 1/1/14 |
| 497,360 |
305,000 |
| North Mankato Impt. G.O. Series 2000-A (FGIC insured), 4.75%, 2/1/10 |
| 305,247 |
|
| Perham Gas Utility Rev. Series 1999 (Radian insured): |
|
|
300,000 |
| 5.35%, 6/1/19 |
| 311,085 |
50,000 |
| 5.45%, 6/1/29 |
| 51,150 |
100,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 1997-CC (MBIA-IBC insured), 5.25%, 7/1/09 |
| 103,440 |
200,000 |
| Puerto Rico Indus. Tourist Educ. Med. & Environmental Ctl. Facs. Rev. Series 1995-A |
|
|
|
| (Hosp. Auxilio Oblig. Group Proj.) (MBIA insured), 6.25%, 7/1/16 |
| 202,436 |
1,000,000 |
| Puerto Rico CommonWealth Public Impt. Series 2001 (FSA insured), 5.125%, 7/1/30 |
| 1,049,840 |
|
|
See accompanying notes to portfolios of investments on page 58. | 47 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
�� |
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
300,000 |
| Scott Co. Hsg. & Redev. Auth. Spl. Benefits Tax Series 1997-B (River City Centre Proj.) |
|
|
|
| (Ambac insured), 5.45%, 2/1/20 |
| 309,024 |
|
| St. Cloud Hosp. Facs. Rev. Ref. (St. Cloud Hosp. Proj.) (Ambac insured), |
|
|
510,000 |
| Series 1996-B, 5.00%, 7/1/20 |
| 516,339 |
200,000 |
| St. Cloud Hlth. Care Rev. Series 2000-A (St. Cloud Hosp. Obligated Group)(FSA insured), 5.125%, 5/1/09 |
| 208,032 |
245,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Series 1993 (Ramsey Med. Ctr. Proj.)(Ambac insured), 5.55%, 5/15/23 |
| 245,331 |
2,415,000 |
| St. Paul Hsg. & Redev. Sales Tax Rev. Refunding Series 1996 (Civic Center Proj.) |
|
|
|
| (FSA insured), 7.10%, 11/1/23 |
| 2,966,731 |
130,000 |
| Scott Co. Hsg. & Redev. Auth. Fac. Lease Rev. Series 1997 (Justice Ctr. Proj.)(Ambac insured), |
|
|
|
| 5.50%, 12/1/15 |
| 133,721 |
805,000 |
| Waconia Hlth. Care Facs. Rev. Series 1999-A (Ridgeview Med. Ctr. Proj.) 6.125%, 1/1/29 |
| 863,097 |
300,000 |
| Western MN Pwr. Agy. Rev. Refunding Series 1996-A (Ambac insured), 5.50%, 1/1/12 |
| 311,313 |
1,750,000 |
| White Earth Band of Chippewa Indians Rev. Series 2000-A (ACA insured), 7.00%, 12/1/11 |
| 1,870,102 |
145,000 |
| Worthington Perm. Impt. Revolving Fd. G.O. Series 1998-A (FSA insured), 4.50%, 2/1/10 |
| 145,086 |
|
|
|
| |
|
|
|
| 17,812,181 |
|
|
|
| |
Multifamily Mortgage (22.9%) |
|
| ||
|
| Apple Valley Multifamily Hsg. Rev. Refunding Series 1998-A (Mtg. Loan/Apple Valley Villa Proj.) (GNMA collateralized): |
|
|
40,000 |
| 4.90%, 8/1/09 |
| 40,899 |
1,520,000 |
| 5.25%, 8/1/18 |
| 1,547,922 |
|
| Austin Hsg. & Redev. Auth. Governmental Hsg. Gross Rev. (Courtyard Res. Proj.): |
|
|
650,000 |
| Series 2000-A, 7.15%, 1/1/20 |
| 692,152 |
500,000 |
| Series 2000-A, 7.25%, 1/1/32 |
| 532,010 |
488,534 |
| Buffalo Hlth. Care C.O.P. Series 2004-C (Central MN Sr. Hsg., LLC Proj.), 7.50%, 2/20/33 |
| 488,759 |
|
| Burnsville Multifamily Hsg. Rev. Refunding Series 1991 (Oak Leaf Apts. Proj.)(GNMA collateralized): |
|
|
640,000 |
| 7.05%, 1/1/12 |
| 641,120 |
780,000 |
| 7.125%, 1/1/17 |
| 781,334 |
860,000 |
| 7.125%, 1/1/21 |
| 861,462 |
150,000 |
| 7.15%, 1/1/27 |
| 150,235 |
530,000 |
| 7.15%, 1/1/23 |
| 530,880 |
425,000 |
| 7.15%, 1/1/25 |
| 425,671 |
|
| Carver Co. Hsg. & Redev. Auth. Multifamily Hsg.: |
|
|
1,280,000 |
| Gross Rev. & Ltd. Tax Refunding Series 1997-A (Lake Grace Apts. Proj.), 6.00%, 7/1/28 |
| 1,309,747 |
650,000 |
| Rev. Refunding Series 1997-A (Waybury Apts. Proj.), 5.875%, 8/1/27 |
| 671,931 |
400,000 |
| Subordinate Rev. Refunding Series 1997-C (Waybury Apts. Proj.), 8.00%, 8/1/27 |
| 411,532 |
|
| Chaska Multifamily Hsg. Rev. Series 1999 (West Suburban Hsg. Partners Proj.): |
|
|
210,000 |
| 5.00%, 9/1/09 (4) |
| 204,345 |
495,000 |
| 5.375%, 9/1/14 (4) |
| 465,721 |
700,000 |
| Coon Rapids Multifamily Hsg. Rev. Refunding Series 1997-A (Margaret Place Apts. Proj.), |
|
|
|
| 6.50%, 5/1/25 |
| 723,590 |
|
| Coon Rapids Senior Hsg. Rev. Refunding Series 1998 (Epiphany Sr. Citizens Hsg. Corp. Proj.): |
|
|
115,000 |
| 5.30%, 11/1/07 |
| 115,049 |
115,000 |
| 5.40%, 11/1/08 |
| 115,045 |
170,000 |
| 5.50%, 11/1/10 |
| 170,029 |
545,000 |
| 5.80%, 11/1/18 |
| 544,984 |
1,930,000 |
| Eagan Multifamily Hsg. Rev. Refunding Series 1997-A (Woodridge Apts. Proj.), 5.95%, 2/1/32 |
| 2,005,559 |
|
| Eden Prairie Multifamily Hsg. Rev. Refunding: |
|
|
25,000 |
| Series 1997 (Preserve Place Proj.) (GNMA collateralized), 4.90%, 1/20/08 |
| 25,426 |
300,000 |
| Series 1997-A (Preserve Place Proj.) (GNMA collateralized), 5.50%, 1/20/18 |
| 310,038 |
410,000 |
| Series 1997-A (Preserve Place Proj.) (GNMA collateralized), 5.60%, 7/20/28 |
| 421,017 |
470,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.00%, 8/20/21 |
| 513,000 |
675,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.15%, 8/20/31 |
| 731,680 |
1,185,000 |
| Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.20%, 2/20/43 |
| 1,280,203 |
980,000 |
| Subordinate Series 2001-C (Rolling Hills Proj.), 9.00%, 4/1/43 |
| 970,661 |
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
|
| Faribault Hsg. & Redev. Auth. Govt. Hsg. Dev. Gross Rev. Ref. Series 1998-A (Trails Edge Apts. Proj.): |
|
|
100,000 |
| 5.125%, 2/1/18 |
| 102,685 |
650,000 |
| 5.25%, 2/1/28 |
| 660,998 |
|
| Fairmont Hsg. Fac. Rev. Series 2002-A1 (Homestead-GEAC Proj.): |
|
|
1,100,000 |
| 6.625%, 10/1/11 |
| 1,153,911 |
295,000 |
| 6.875%, 10/1/14 |
| 298,749 |
|
| Fairmont Hsg. Fac. Rev. Series 2005-A (Goldfinch Estates-GEAC Proj.): |
|
|
300,000 |
| 5.75%, 10/1/17 |
| 300,210 |
290,000 |
| 6.00%, 10/1/21 |
| 290,200 |
|
| Golden Valley Rev. Series 1999-A (Covenant Retirement Cmntys. Proj.): |
|
|
500,000 |
| 5.50%, 12/1/25 |
| 516,145 |
1,270,000 |
| 5.50%, 12/1/29 |
| 1,307,122 |
|
| Grand Rapids Hsg. & Redev. Auth. (Lakeshore Place and Forest Park West Apts. Proj.): |
|
|
45,000 |
| Series 1999-B, 5.00%, 10/1/09 |
| 45,086 |
500,000 |
| Series 1999-A, 5.20%, 10/1/19 |
| 508,210 |
1,660,000 |
| Series 1999-A, 5.30%, 10/1/29 |
| 1,672,135 |
130,000 |
| Series 1999-B, 5.70%, 10/1/29 |
| 131,117 |
500,000 |
| Hastings Hsg. & Redev. Auth. Rev. Series 2001 (Augustana Apts. Proj.), 6.00%, 11/1/31 |
| 502,845 |
485,000 |
| Hopkins Subordinate Multifamily Hsg. Rev. Refunding Series 1996-C (Auburn Apts. Proj.), 8.00%, 6/20/31 |
| 493,638 |
|
| Hopkins Multifamily Hsg. Rev. Series 1996 (Hopkins Renaissance Proj.) (Section 8): |
|
|
100,000 |
| 5.85%, 4/1/09 |
| 103,178 |
450,000 |
| 6.25%, 4/1/15 |
| 464,566 |
|
| Hutchinson Hsg. Fac. Rev. (Prince of Peace Apts. Proj.): |
|
|
50,000 |
| Series 2003-A, 3.50%, 10/1/06 |
| 49,993 |
115,000 |
| Series 2003-A, 4.00%, 10/1/07 |
| 114,951 |
120,000 |
| Series 2003-A, 4.50%, 10/1/08 |
| 119,916 |
1,400,000 |
| Maplewood Multifamily Hsg. Rev. Series 1998 (Park Edge Apts. Proj.), 6.50%, 5/1/29 (4) |
| 1,255,758 |
|
| Maplewood Multifamily Refunding Rev. (Village on Woodlyn Proj.): |
|
|
1,605,000 |
| Series 1999-A (GNMA collateralized), 6.75%, 7/20/30 (4) |
| 1,679,151 |
100,000 |
| Subordinate Series 1999-C-1, 8.00%, 11/1/30 (4) |
| 102,832 |
255,000 |
| Subordinate Series 1999-C-2, 8.00%, 11/1/30 (4) |
| 262,222 |
200,000 |
| Moorhead Econ Dev. Auth. Multifamily Rev. Series 1999-B (Eventide Sr. Hsg. Proj.), 5.90%, 6/1/19 |
| 200,150 |
|
| Minneapolis Multifamily Hsg. Rev.: |
|
|
500,000 |
| Series 2002-A (Keeler Apts. Proj.), 7.00%, 10/1/17 |
| 519,780 |
355,000 |
| Series 1996 (Belmont Apts.), 7.25%, 11/1/16 |
| 355,461 |
500,000 |
| Series 1996-A (Nicollet Towers) (Section 8), 5.60%, 6/1/08 |
| 512,155 |
5,020,000 |
| Series 1996-A (Nicollet Towers) (Section 8), 6.00%, 12/01/19 |
| 5,124,617 |
1,000,000 |
| Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 5.10%, 12/20/18 (4) |
| 1,014,590 |
325,000 |
| Series 2000 (Garr Scott Loft Proj.)(LOC U.S. Bank), 5.95%, 5/1/30 (4) |
| 338,640 |
50,000 |
| Series 2003-A (Sumner Proj.) (GNMA collateralized), 3.00%, 8/20/08 (4) |
| 49,227 |
50,000 |
| MN HFA Rental Hsg. Rev. Series 1996-A, 6.10%, 8/1/27 (4) |
| 51,153 |
85,000 |
| MN HFA Rental Hsg. Rev. Series 2004-A, 4.875%, 8/1/24 (4) |
| 85,909 |
125,000 |
| MN HFA Rental Hsg. Rev. Series 1997-A, 5.45%, 8/1/11 (4) |
| 128,223 |
1,300,000 |
| MN HFA Rental Hsg. Rev. Series 2006-A2, 3.80%, 2/1/08 (4) |
| 1,299,493 |
100,000 |
| MN HFA Rental Hsg. Rev. Series 2000-A (Section 8), 5.375%, 2/1/09 (4) |
| 103,280 |
|
| Minnetonka Multifamily Hsg. Rev. Refunding Series 1999-A (GNMA collateralized) (Archer Heights Apts. Proj.): |
|
|
540,000 |
| 5.10%, 7/20/13 (4) |
| 557,539 |
975,000 |
| 5.20%, 1/20/18 (4) |
| 1,005,186 |
|
|
See accompanying notes to portfolios of investments on page 58. | 49 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
|
| New Ulm Multifamily Rev. Series 1999 (HADC Ridgeway Proj.): |
|
|
95,000 |
| 5.35%, 12/1/08 |
| 95,978 |
100,000 |
| 5.40%, 12/1/09 |
| 101,209 |
105,000 |
| 5.50%, 12/1/10 |
| 106,442 |
110,000 |
| 5.60%, 12/1/11 |
| 111,521 |
200,000 |
| 6.125%, 12/1/19 |
| 204,170 |
|
| Northwest MN Multi Co. Hsg. & Redev. Auth. Hsg. Rev. Series 2005-A (Pooled Hsg. Proj.): |
|
|
145,000 |
| 4.50%, 7/1/09 |
| 144,298 |
115,000 |
| 4.75%, 7/1/10 |
| 114,468 |
|
| Norwood Young America Econ. Dev. Auth. Gov. Rev. Series 2005-A (Harbor at Peace Village Proj.): |
|
|
150,000 |
| 5.35%, 8/1/15 |
| 148,773 |
200,000 |
| 5.625%, 8/1/20 |
| 198,334 |
550,000 |
| 5.75%, 8/1/25 |
| 544,258 |
250,000 |
| 6.00%, 8/1/31 |
| 249,975 |
|
| Oakdale Multifamily Sr. Hsg. Rev. Refunding Series 2004 (Oak Meadows Proj.): |
|
|
325,000 |
| 4.25%, 4/1/08 |
| 327,044 |
600,000 |
| 5.00%, 4/1/12 |
| 610,260 |
|
| Plymouth Multifamily Hsg. Rev. Refunding (Fox Forest Apts. Proj.) (GNMA collateralized): |
|
|
1,650,000 |
| Series 1996-A, 8.05%, 6/20/31 |
| 1,707,668 |
625,000 |
| Series 1996-C, 8.00%, 6/20/31 |
| 635,875 |
500,000 |
| Richfield Sr. Hsg. Rev. Refunding Series 2004-A (Richfield Sr. Hsg., Inc. Proj.), 5.00%, 12/1/15 |
| 485,275 |
2,800,000 |
| Rochester Multifamily Rev. Refunding Series 2000-A (Weatherstone Apts. Proj.) (LOC Household Finance) (Mandatory Put 9/1/17) 6.375%, 9/1/37 (4) |
| 3,093,916 |
|
| Roseville Hsg. Fac. Rev. Refunding Bonds Series 1998 (College Properties Inc. Proj.): |
|
|
2,820,000 |
| 5.60%, 10/1/13 |
| 2,827,360 |
100,000 |
| 5.875%, 10/1/28 |
| 100,212 |
80,000 |
| Sherburne Co. Hsg. & Redev. Auth. Lease Rev. Series 1997, 5.50%, 2/1/17 |
| 80,077 |
|
| Shoreview Sr. Hsg. Rev. Series 2005-A (Shoreview Sr. Residence Proj.): |
|
|
110,000 |
| 3.50%, 5/1/08 |
| 108,496 |
115,000 |
| 3.75%, 5/1/09 |
| 113,143 |
600,000 |
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev. Refunding Series 1998 |
|
|
|
| (Northway Manor Apts. Proj.)(Section 8), 5.35%, 12/1/18 |
| 581,238 |
1,585,000 |
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev.: |
|
|
|
| Series 1993 (Germain Towers Proj.) (Section 8), 5.90%, 9/1/20 |
| 1,503,864 |
60,000 |
| Series 1999-A (Parkview Terrace Apts. Proj.) (Section 8), 5.00%, 6/1/09 |
| 58,642 |
|
| St. Louis Park Multifamily Hsg. Rev. Refunding: |
|
|
500,000 |
| Series 1998-A (Park Ridge Apts. Proj.) (GNMA collateralized), 5.25%, 11/1/20 |
| 516,400 |
200,000 |
| St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Series 1995 |
|
|
|
| (Sun Cliffe Apts. Proj.)(GNMA collateralized), 5.875%, 7/1/15 |
| 205,496 |
3,210,000 |
| St. Paul Port Authority Multifamily Hsg. Refunding (Jackson Towers Apts. Proj.) Senior |
|
|
|
| Series 1998-1A (GNMA collateralized), 6.95%, 4/20/33 |
| 3,420,993 |
755,000 |
| Washington Co. Hsg. & Redev. Auth. Governmental Hsg. Rev. Refunding Series 1999-A (Briar Pond Apts. Proj.) (GNMA collateralized), 5.50%, 2/20/14 |
| 775,800 |
|
|
|
| |
|
|
|
| 60,334,207 |
|
|
|
| |
Municipal Lease (3.5%) (5) |
|
| ||
500,000 |
| Andover Econ. Dev. Auth. Public Fac. Lease Rev. Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 |
| 514,750 |
40,000 |
| Anoka Co. C.O.P. Series 1998, 5.40%, 6/1/28 |
| 40,486 |
100,000 |
| Big Lake Econ. Dev. Auth. Public Proj. Rev. Series 2005-A, 4.20%, 2/1/10 |
| 99,603 |
15,981 |
| Brooklyn Park C.O.P. Series 1996, 5.45%, 9/27/06 |
| 16,109 |
175,000 |
| Cambridge Econ. Dev. Auth. Public Fac. Lease Rev. Refunding Series 1998, 4.50%, 2/1/10 |
| 175,756 |
2,247,416 |
| Carver Scott Co. Lease Purchase Agreement Series 2005, 5.00%, 8/4/20 |
| 2,206,558 |
50,000 |
| Chaska Econ. Dev. Auth. ISD No. 112 Sch. Facs. Lease Rev. Series 1999-A, 5.125%, 12/1/09 |
| 52,372 |
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
89,000 |
| Hennepin Co. Hsg. & Redev. Auth. Rev. Series 1993-A (Community Provider Program), 5.70%, 8/1/13 |
| 89,098 |
285,000 |
| Hibbing Econ. Dev. Auth. Public Proj. Rev. Series 1997 (Hibbing Lease Obligations Proj.), 6.10%, 2/1/08 |
| 288,049 |
900,000 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 4.78%, 3/15/13 |
| 917,901 |
125,000 |
| Mountain Iron Hsg. & Redev. Auth. Rev. Series 2001-A (Arrowhead Library Sys. Proj.), 5.00%, 9/1/09 |
| 127,629 |
1,303,208 |
| St. Paul Lease Series 1998 (City Hall Annex Building), 5.71%, 10/1/18 |
| 1,361,305 |
40,000 |
| St. Paul ISD No. 625 C.O.P Series 1995-C, 5.40%, 2/1/10 |
| 40,057 |
400,000 |
| St. Paul Hsg. & Redev. Auth. Lease Rev. Series 2000 (Rivercentre Pkg. Ramp Proj.), 5.70%, 5/1/08 |
| 414,396 |
520,000 |
| Scott Co. Hsg. & Red. Auth. Fac. Lease Rev. Series 1998 (Workforce Ctr. Proj.), 5.00%, 2/1/18 |
| 526,963 |
|
| Virginia Hsg. & Redev. Auth. Hlth. Care Fac. Lease Rev. Series 2005: |
|
|
300,000 |
| 4.00%, 10/1/07 |
| 299,244 |
275,000 |
| 4.00%, 10/1/08 |
| 273,141 |
300,000 |
| 4.00%, 10/1/09 |
| 296,817 |
300,000 |
| 4.50%, 10/1/10 |
| 301,176 |
1,200,000 |
| 5.125%, 10/1/20 |
| 1,225,800 |
|
|
|
| |
|
|
|
| 9,267,210 |
|
|
|
| |
Public Facilities (0.6%) |
|
| ||
50,000 |
| MN Agr. Soc. State Fair Rev. Series 2003, 5.00%, 9/15/20 |
| 51,047 |
250,000 |
| Rockville Econ. Dev. Auth. Pub. Proj. Lease Rev. Series 2005-A, 4.00%, 2/1/14 |
| 244,345 |
|
| Spring Grove Econ. Dev. Auth. Pub. Proj. Rev. Series 2006-A: |
|
|
135,000 |
| 4.625%, 2/1/12 |
| 135,000 |
255,000 |
| 5.00%, 2/1/16 |
| 255,000 |
125,000 |
| 5.10%, 2/1/18 |
| 125,000 |
|
| Victoria Rec. Fac. Gross Rev. Ref. Crossover Series 2006-A: |
|
|
205,000 |
| 4.55%, 8/1/17 |
| 203,163 |
210,000 |
| 4.65%, 8/1/18 |
| 208,820 |
360,000 |
| 4.90%, 8/1/23 |
| 358,063 |
|
|
|
| |
|
|
|
| 1,580,438 |
|
|
|
| |
Single Family Mortgage (5.8%) |
|
| ||
|
| Dakota County Hsg. & Redev. Auth. Single Family Mtg. Rev., |
|
|
20,000 |
| Series 1995 (FNMA & GNMA backed), 6.25%, 10/1/09 (4) |
| 20,000 |
|
| Minneapolis- St. Paul Hsg. Fin. Bd. Single Family Mtg. Rev. (FNMA & GNMA backed): |
|
|
45,000 |
| Series 1997, 6.25%, 11/1/30 |
| 47,835 |
1,249,030 |
| Series 2005-A3, 5.10%, 4/1/27 |
| 1,299,491 |
180,000 |
| Minneapolis Redev. Mtg. Rev. Series 1987-A (Riverplace Proj.) (LOC Bk. of Tokyo), 7.10%, 1/1/20 |
| 180,734 |
93,264 |
| Minneapolis Residual Interest Mtg. Rev. Series 1995, 7.00%, 10/1/12 |
| 93,419 |
|
| MN HFA Single Family Mtg. Rev.: |
|
|
200,000 |
| Series 1994-E, 5.90%, 7/1/25 |
| 201,852 |
115,000 |
| Series 1996-D, 6.00%, 1/1/16 |
| 117,444 |
85,000 |
| Series 1997-A, 5.60%, 7/1/09 |
| 86,921 |
295,000 |
| Series 1997-I, 5.50%, 1/1/17 |
| 303,328 |
175,000 |
| Series 1996-H, 6.00%, 1/1/21 |
| 178,693 |
640,000 |
| Series 1997-D, 5.85%, 7/1/19 (4) |
| 642,323 |
35,000 |
| Series 1997-E, 5.90%, 7/1/29 (4) |
| 35,131 |
15,000 |
| Series 1997-G, 6.00%, 1/1/18 |
| 15,388 |
880,000 |
| Series 1998-C, 5.25%, 1/1/17 |
| 881,346 |
70,000 |
| Series 1998-F-1, 4.75%, 7/1/07 |
| 70,051 |
55,000 |
| Series 1998-F, 4.95%, 7/1/08 |
| 55,207 |
275,000 |
| Series 1998-F-1, 5.45%, 1/1/17 |
| 277,800 |
80,000 |
| Series 1998-F, 5.70%, 1/1/17 |
| 80,822 |
415,000 |
| Series 1999-B, 5.25%, 1/1/20 |
| 417,577 |
115,000 |
| Series 2000-A, 5.75%, 7/1/18 |
| 116,103 |
135,000 |
| Series 2000-C, 6.10%, 7/1/30 (4) |
| 136,615 |
|
|
See accompanying notes to portfolios of investments on page 58. | 51 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||||
30,000 |
| Series 2001-B, 4.55%, 7/1/07 (4) |
| 29,972 |
340,000 |
| Series 2003-I, 4.30%, 7/1/11 (4) |
| 342,846 |
595,000 |
| Series 2003-I, 5.10%, 7/1/20 (4) |
| 610,375 |
2,000,000 |
| Series 2003-L-2, 2.35%, 1/1/31 (4) |
| 1,974,360 |
5,000,000 |
| Series 2005-D, 2.90%, 5/18/06 |
| 4,994,850 |
2,000,000 |
| Series 2006-B, 5.00%, 1/1/37 (4) |
| 2,066,660 |
|
|
|
| |
|
|
|
| 15,277,143 |
|
|
|
| |
Utility (1.8%) |
|
|
|
|
610,000 |
| Chaska Electric Rev. Series 2000A, 5.50%, 10/1/06 |
| 615,539 |
1,500,000 |
| MN Muni Pwr. Agy. Elec. Rev. Series 2005, 5.00%, 10/1/30 |
| 1,534,170 |
300,000 |
| Princeton Public Utility Sys. Rev. Series 2004, 5.00%, 4/1/24 |
| 303,252 |
2,300,000 |
| Puerto Rico Aqueduct & Swr. Auth. Rev. Refunding Series 1995, 5.00%, 7/1/19 |
| 2,339,031 |
|
|
|
| |
|
|
|
| 4,791,992 |
|
|
|
| |
|
|
|
|
|
Other Revenue Bonds (7.7%) |
|
| ||
|
| Columbia Heights Commercial Dev. Refunding Rev. Series 1999 (Columbia Park Properties - Medical Clinic Proj.): |
|
|
250,000 |
| 5.15%, 12/1/08 |
| 252,585 |
1,750,000 |
| 5.60%, 12/1/15 |
| 1,762,460 |
|
| Commissioner of Iron Range Resources and Rehab. Gross Rev. (Giant’s Ridge Rec. Area Proj.), |
|
|
900,000 |
| Series 2000, 7.25%, 11/1/16 |
| 943,452 |
|
| Minneapolis Cmty. Dev. Agy. Ltd. Tax Common Bond Fund: |
|
|
125,000 |
| Series 1996-1 (LOC-U.S. Bank), 6.00%, 6/1/11 |
| 125,371 |
170,000 |
| Series 1997-1 (Halper Corrugated Box Mfg. Co.), 5.90%, 6/1/07 (4) |
| 172,712 |
500,000 |
| Series 1999-1A (Discount Steel), 5.25%, 6/1/19 (4) |
| 507,970 |
160,000 |
| Series 2000-G2 (LOC-U.S. Bank), 6.00%, 12/1/20 |
| 170,752 |
675,000 |
| Minneapolis Public Hsg. Auth. Series 1997 (General Credit Energy Savings Proj.), 6.00%, 7/1/08 |
| 666,023 |
325,000 |
| Minneapolis Rev. Ref. Series 2006 (Univ. Gateway Proj.), 4.00%, 12/1/06 |
| 326,076 |
|
| Minneapolis Tax Increment Rev. Refunding Series 2004 (St. Anthony Falls Proj.): |
|
|
600,000 |
| 4.50%, 2/1/13 |
| 593,022 |
75,000 |
| 4.40%, 2/1/09 |
| 74,739 |
100,000 |
| 4.50%, 2/1/10 |
| 99,577 |
100,000 |
| 4.60%, 2/1/11 |
| 99,396 |
125,000 |
| 4.70%, 2/1/12 |
| 124,175 |
125,000 |
| 4.80%, 2/1/13 |
| 124,345 |
1,000,000 |
| MN Agr. & Econ. Dev. Board Rev. Series 2000-B (Small Business Dev. Proj.), 7.25%, 8/1/20 (4) |
| 1,060,100 |
|
| St. Paul Hsg. & Redev. Auth. Tax Increment Rev.: |
|
|
100,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 5.70%, 8/1/12 |
| 102,595 |
775,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 6.125%, 8/1/19 |
| 795,034 |
1,132,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 2), 7.00%, 2/15/28 |
| 1,170,556 |
1,059,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 1), 7.50%, 2/15/28 |
| 1,122,572 |
3,000,000 |
| Series 2002-A (Upper Landing Proj.), 6.80%, 3/1/29 |
| 3,022,980 |
2,000,000 |
| Series 2002-B-2 (Upper Landing Proj.), 6.90%, 3/1/29 |
| 1,988,460 |
1,263,000 |
| Series 2002 (Drake Marble Proj.), 6.75%, 3/1/28 |
| 1,336,810 |
1,335,000 |
| Series 2004 (9th St. Lofts Proj.), 6.375%, 2/15/28 |
| 1,352,155 |
|
| St. Paul Recreational Facs. Gross Rev. Series 2005 (Highland National Proj.): |
|
|
205,000 |
| 3.50%, 10/1/07 |
| 204,496 |
715,000 |
| 5.00%, 10/125 |
| 744,072 |
475,000 |
| Steele Co. Hlth. Care Fac. Gross Rev. Refunding Crossover Series 2005-B, 4.65%, 6/1/20 |
| 470,017 |
190,000 |
| Steele Co. Hlth. Care Fac. Gross Rev. Unref. Bal. Series 2000 (Elderly Housing Proj.), 6.625%, 6/1/20 |
| 204,497 |
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | |
| |||||
|
| Victoria Recreational Facility Gross Rev. Series 2002: |
|
| |
70,000 |
| 4.75%, 2/1/12 |
| 70,925 | |
75,000 |
| 4.75%, 8/1/12 |
| 75,992 | |
85,000 |
| 5.10%, 8/1/15 |
| 86,862 | |
415,000 |
| Virgin Islands Public Fin. Auth. Rev. Gross Receipts Taxes Loan Note Series 1999-A, 5.625%, 10/1/10 |
| 427,749 | |
|
|
|
| ||
|
|
|
| 20,278,527 | |
|
|
|
| ||
|
|
|
|
| |
Total municipal bonds (cost: $248,072,844) |
| 249,990,758 | |||
|
| ||||
|
|
|
|
| |
Short-Term Securities (4.4%) (2) |
|
| |||
980,000 |
| Midwest Consortium of Muni Utility Rev. Series 2005-A (MN Utilities Assoc. Proj.), variable rate, 1/1/25 |
| 980,000 | |
1,445,000 |
| Mpls. Nursing Home Rev. Ref. Series 2002 (Catholic Eldercare Proj.), variable rate, 12/1/27 |
| 1,445,000 | |
2,200,000 |
| Minneapolis Multifamily Rev. Series 2002 (St. Hedwigs Assisted Proj.), variable rate, 12/1/27 |
| 2,200,000 | |
790,000 |
| Minneapolis Multifamily Rev. Series 2001 (Seven Corners Apts. Proj.), variable rate, 11/1/31 |
| 790,000 | |
1,000,000 |
| Minneapolis & St. Paul Metro Arpts. Comm. Rev. Series 2004-A1, variable rate, 1/1/31 |
| 1,000,000 | |
1,900,000 |
| MN Higher Educ. Fac. Auth. Rev. Series 2002-N2 (St. Catherine Proj.), variable rate, 10/1/32 |
| 1,900,000 | |
800,000 |
| MN Higher Educ. Facs. Rev. Series 2003, variable rate, 10/1/33 |
| 800,000 | |
|
| Robbinsdale Hlth. Care Facs. Rev. Series 2003 (North Memorial Health Proj.) (Ambac insured): |
|
| |
1,250,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Series 2001 (Cretin -Derham Hall Proj.), variable rate, 2/1/26 |
| 1,250,000 | |
1,343,193 |
| Wells Fargo Minnesota Municipal Cash Fund, 2.30% |
| 1,343,193 | |
|
|
|
| ||
|
|
|
|
| |
Total Short-Term Securities (cost: 11,708,193) |
| 11,708,193 | |||
|
| ||||
|
|
|
|
| |
Total investments in securities (cost: $259,781,037) (6) |
| $ | 261,698,951 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 53 |
|
|
|
|
|
|
|
|
| |
| One Year Ended March 31, 2006 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers Michael C. Brilley w Debra A. Sit, CFA w Paul J. Jungquist, CFA |
|
|
|
|
|
|
|
|
The Sit Florida Tax-Free Income Fund returned +3.55% for the fiscal year ended March 31, 2006, compared with a return of +2.14% for the Lehman 5-Year Municipal Bond Index. The Fund’s 30-day SEC yield was 4.19% and its 12-month distribution rate was 3.30% as of March 31, 2006, compared to 4.23% and 2.93%, respectively, at March 31, 2005.
Over the past twelve months, the Federal Reserve increased the federal funds target rate by 0.25% on eight occasions for a total of 3.75% in fifteen consecutive moves since it began tightening monetary policy on June 30, 2004. The Federal Reserve’s tightening policy has caused a flattening of the municipal yield curve because long-term municipal bond yields have actually declined while short and intermediate municipal yields rose over the period, as well as since the Federal Reserve began raising rates to remove accommodative policy.
The Fund invests in five different market sectors that each account for more than 5% of its holdings. All of those sectors substantially outperformed the benchmark, with returns at least 1% higher than the Index. The Fund’s duration averaged about 3.3 years over the past twelve months. The relatively short duration was the primary factor in the Fund’s strong relative performance over the fiscal year.
We believe that the Federal Reserve is nearing the end of its tightening cycle. We expect the Federal Reserve to tighten by one to three additional 0.25% increases, depending on the pace of economic growth and inflation over the coming twelve-month period. We are forecasting a slowing of economic growth to about a +2.75% annual rate over the coming twelve months. We expect inflation to remain at about a +3.0% rate of increase, which will be a continuing concern for Federal Reserve policy. Intermediate-and longer-term bond yields are expected to drift to modestly higher levels. We anticipate taking advantage of higher bond yields by extending the duration of the Fund by a year or more over the coming twelve months. That duration extension is expected to result in higher monthly income distributions by late 2006.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Florida Tax-Free Income Fund is to provide a high level of current income that is exempt from federal regular income tax by investing in securities that are exempt from the Florida intangibles tax.
The Fund seeks to achieve its objective by investing primarily in municipal securities that generate interest income that is exempt from regular federal income tax and that are exempt from the Florida intangible personal property tax. During normal market conditions, the Fund invests 100% (and, as a fundamental policy, no less than 80%) of its net assets in such tax-exempt municipal securities. The Fund may invest up to 10% of its assets in securities that generate interest income subject to federal alternative minimum tax.
|
PORTFOLIO SUMMARY |
|
|
|
|
Net Asset Value 3/31/06: |
| $9.96 Per Share | |
3/31/05: |
| $9.94 Per Share | |
Total Net Assets: |
| $3.8 Million | |
30-day SEC Yield: |
| 4.19% | |
Tax Equivalent Yield: |
| 6.45%(1) | |
12-Month Distribution Rate: |
| 3.30% | |
Average Maturity: |
| 13.0 Years | |
Duration to Estimated Avg. Life: |
| 2.3 Years(2) | |
Implied Duration: |
| 3.1 Years(2) | |
(1) For individuals in the 35.0% federal tax bracket. | |||
(2) See next page. |
|
PORTFOLIO STRUCTURE |
|
|
|
54
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AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||
|
| ||||||||||||
|
| Sit |
| Lehman |
| Lipper FL |
| ||||||
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
| |||
3 Month** |
| 0.68 | % |
| 0.02 | % |
| 0.49 | % |
| |||
6 Month** |
| 1.52 |
|
| 0.32 |
|
| n/a |
|
| |||
1 Year |
| 3.55 |
|
| 2.14 |
|
| 4.09 |
|
| |||
3 Years |
| n/a |
|
| n/a |
|
| n/a |
|
| |||
5 Years |
| n/a |
|
| n/a |
|
| n/a |
|
| |||
Inception |
| 2.88 |
|
| 1.64 |
|
| 3.58 |
|
| |||
(12/31/03) |
|
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| |||
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| |||
CUMULATIVE TOTAL RETURNS* | |||||||||||||
|
| Sit |
| Lehman |
| Lipper FL |
|
| |||||
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| |||
1 Year |
| 3.55 | % |
| 2.14 | % |
| 4.09 | % |
| |||
3 Years |
| n/a |
|
| n/a |
|
| n/a |
|
| |||
5 Years |
| n/a |
|
| n/a |
|
| n/a |
|
| |||
Inception |
| 6.60 |
|
| 3.72 |
|
| 8.24 |
|
| |||
(12/31/03) |
|
|
|
|
|
|
|
|
|
| |||
*As of 3/31/06. |
| **Not annualized. |
|
| |||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman 5-Year Municipal Bond Index.The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds. |
|
(2) Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/03) and held until 3/31/06 would have grown to $10,660 in the Fund or $10,372 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
55
|
|
|
|
|
| Sit Florida Tax-Free Income Fund |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) | Name of Issuer | Market Value ($)(1) | ||
|
|
| ||
Municipal Bonds (98.1%) (2) |
| |||
Escrowed to Maturity / Prerefunded (8.4%) |
| |||
90,000 |
| Brevard Co. School Board C.O.P. Series 1996-B (Ambac insured), 5.50%, 7/1/21 |
| 92,229 |
25,000 |
| Orange Co. School Board C.O.P. Series 1997-A, 5.375%, 8/1/22 |
| 25,766 |
20,000 |
| Tampa - Hillsborough Expressway Auth. Rev. Series 1997, 5.00%, 7/1/27 |
| 20,539 |
|
| Tampa Rev. Allegany Hlth. Sys.: |
|
|
50,000 |
| Series 1993 (St. Anthony Hosp. Proj.), 5.125%, 12/1/15 |
| 50,057 |
75,000 |
| Series 1993 (St. Joseph’s Hosp. Proj.) (MBIA insured), 5.125%, 12/1/23 |
| 75,085 |
50,000 |
| Univ. of South FL Hsg. Fac. Rev. Series 1997-A (MBIA insured), 5.35%, 7/1/15 |
| 50,724 |
|
|
|
| |
|
|
|
| 314,400 |
|
|
|
| |
Hospital / Health Care (9.2%) |
| |||
|
| Escambia Co. Hlth. Facs. Auth. Rev. Series 1998 (Baptist Hosp. Proj.): |
|
|
50,000 |
| 5.125%, 10/1/14 |
| 51,216 |
65,000 |
| 5.125%, 10/1/19 |
| 66,162 |
|
| Highlands Co. Hlth. Facs. Auth. Rev. Series 2003-D (Adventist Hlth. Sys. Proj.): |
|
|
15,000 |
| 6.00%, 11/15/25 |
| 16,133 |
25,000 |
| 5.875%, 11/15/29 |
| 26,779 |
|
| Marion Co. Hosp. Dist. Rev. Refunding Series 1999 (Munroe Reg. Proj.): |
|
|
25,000 |
| 5.25%, 10/1/10 |
| 26,177 |
50,000 |
| 5.50%, 10/1/14 |
| 52,364 |
100,000 |
| South Lake Co. Hosp. Dist. Rev. Series 2003 (South Lake Hosp., Inc. Proj.), 5.50%, 10/1/13 |
| 105,492 |
|
|
|
| |
|
|
|
| 344,323 |
|
|
|
| |
Industrial / Pollution Control (0.8%) | ||||
30,000 |
| Jacksonville Pollution Ctrl. Rev. Ref. Series 1996 (Anheuser-Busch Proj.), 5.70%, 8/1/31 |
| 30,425 |
|
|
|
| |
|
| |||
50,000 |
| Bay Med. Ctr. Hosp. Rev. Ref. Series 1996 (Bay Med. Ctr. Proj.) (Ambac insured), 5.55%, 10/1/15 |
| 51,303 |
70,000 |
| Clearwater Hsg. Auth. Rev. Refunding Series 1997 (Hamptons at Clearwater Proj.) (ACA insured), 5.40%, 5/1/13 |
| 71,920 |
40,000 |
| Dade Co. Aviation Rev. Series 1997-C (Miami Intl. Airport Proj.), 5.125%, 10/1/27 |
| 40,801 |
40,000 |
| Dade Co. Sch. Dist. G.O. Series 1997 (MBIA insured), 5.00%, 2/15/17 |
| 40,811 |
100,000 |
| Dade Co. Seaport Rev. Refunding Series 1995 (MBIA insured), 5.75%, 10/1/15 |
| 102,164 |
150,000 |
| Dade Co. Special Oblig. Rev. Refunding Series 1996-B (Ambac insured), 5.00%, 10/1/35 |
| 152,660 |
45,000 |
| FL Correctional Privatization C.O.P. Series 1995-B (Ambac insured), 5.00%, 8/1/17 |
| 45,705 |
50,000 |
| FL HFC Hsg. Rev. Series 2000-D-1 (Augustine Club Apts. Proj.)(Ambac insured), 5.75%, 10/1/30 |
| 52,285 |
100,000 |
| Halifax Hosp. Med. Ctr. Health Care Fac. Rev. Series 1998-A (Halifax Mgmt. Sys. Proj.) (ACA insured), 5.00%, 4/1/12 |
| 101,655 |
95,000 |
| Hillsborough Co. Educ. Fac. Auth. Rev. Refunding Series 1998 (Univ. of Tampa Proj.) (Radian insured), 5.75%, 4/1/18 |
| 100,138 |
|
| Lakeland Hosp. Sys. Rev. Refunding (Lakeland Regl. Med. Ctr. Proj.) (MBIA insured): |
|
|
55,000 |
| Series 1996, 5.25%, 11/15/25 |
| 56,544 |
50,000 |
| Series 1997, 5.00%, 11/15/22 |
| 50,905 |
40,000 |
| Miami - Dade Co. Impts. Public Svc. Tax Rev. Series 1999, 5.00%, 10/1/23 |
| 41,664 |
|
| Miami - Dade Co. Special Oblig. Rev. Series 1997-B (MBIA insured): |
| 60,131 |
265,000 |
| 5.44% effective yield, 10/1/33 |
| 87,547 |
100,000 |
| 4.79% effective yield, 10/1/35 |
|
|
20,000 |
| Ocala Cap. Impts. Rev. Series 1995 (Ambac insured), 5.375%, 10/1/22 |
| 20,425 |
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) | Name of Issuer | Market Value ($)(1) | ||
| ||||
60,000 |
| Orlando & Orange Co. Expwy. Auth. Rev. Junior Lien Series 1998 (FGIC insured), 5.00%, 7/1/28 |
| 61,295 |
90,000 |
| Palm Beach Co. Hlth. Facs. Auth. Rev. Series 1993 (Jupiter Med. Ctr. Proj.)(FSA insured), 5.25%, 8/1/18 |
| 90,101 |
75,000 |
| Pinellas Co. Swr. Rev. Ref. Series 1998, 5.00%, 10/1/24 |
| 77,600 |
|
| Port Everglades Auth. Rev. Refunding & Impt. Series 1989-A: |
|
|
45,000 |
| (FSA insured), 5.00%, 9/1/16 |
| 45,018 |
150,000 |
| (MBIA-IBC insured), 5.00%, 9/1/16 |
| 150,061 |
25,000 |
| Venice Hlth. Care Rev. Series 1996 (Bon Secours Hlth. Sys. Proj.)(MBIA insured), 5.625%, 8/15/26 |
| 25,645 |
170,000 |
| Village Ctr. Cmnty. Dev. Dist. Recreational Rev. Series 1998-A (MBIA insured), 5.00%, 11/1/21 |
| 176,020 |
|
|
|
| |
|
|
| 1,702,398 | |
|
|
| ||
Multifamily Mortgage (21.2%) |
| |||
100,000 |
| Broward Co. Hsg. Fin. Auth. Multifamily Rev. Refunding Series 1996 (Tamarac Pointe Apts. Proj.)(GNMA collateralized), 6.15%, 7/1/16 |
| 102,353 |
100,000 |
| Capital Trust Agy. Hsg. Rev. Series 2005-B (Atlantic Hsg. Foundation Proj.), 4.50%, 7/1/15 |
| 100,445 |
45,000 |
| Capital Trust Agy. Multifamily Rev. Sr. Series 2003-A (Golf Villas, Rivermill, and Village Square Apts. Proj.), 4.75%, 6/1/13 |
| 43,148 |
45,000 |
| Collier Co. HFA Multifamily Hsg. Rev. Series 2002C (Goodlette Arms Proj.), 5.25%, 8/15/15 |
| 46,616 |
20,000 |
| Dade Co. Hsg. Fin. Auth. Multifamily Rev. Refunding Series 1996-A (New Horizons Proj.) (FHA insured), 5.88%, 7/15/24 |
| 20,718 |
120,000 |
| Orange Co. Hlth. Facs. Auth. Rev. Refunding Series 2005 (Orlando Lutheran Proj.), 4.625%, 7/1/09 |
| 118,163 |
55,000 |
| Palm Beach Co. Hsg. Fin. Auth. Rev. Refunding Series 1997-A (GNMA Mallard’s Cove Apts. Proj.), 5.95%, 10/20/31 |
| 55,295 |
120,000 |
| Palm Beach Co. Hlth. Fac. Auth. Rev. Series 1996 (ACTS Retirement Cmnty. Proj.), 5.625%, 11/15/20 |
| 123,132 |
135,000 |
| Plantation Hlth. Facs. Auth. Rev. Refunding Series 1998 (Covenant Village Proj.), 5.125%, 12/1/22 |
| 135,774 |
50,000 |
| Polk Co. Hsg. Fin. Auth. Mtg. Rev. Series 1994-A (Lake Wales Gardens Proj.), 5.625%, 5/20/14 |
| 52,880 |
|
|
|
| |
|
|
| 798,524 | |
|
|
| ||
Utility (1.7%) |
|
|
| |
15,000 |
| Gainesville Utility Sys. Rev. Series 1996-A, 5.20%, 10/1/26 |
| 15,391 |
50,000 |
| Jacksonville Elec. Auth. Rev. Refundng Series 1997 Issue 2-14 (St. John’s River Proj.), 4.90%, 10/1/08 |
| 50,543 |
|
|
|
| |
|
|
| 65,934 | |
|
|
| ||
Other Revenue Bonds (11.6%) |
| |||
15,000 |
| Double Branch Cmnty. Dev. Dist. Rev. Series 2003-C, 5.125%, 5/1/08 |
| 15,080 |
100,000 |
| Fiddlers Creek Cmnty. Dev. Dist. No. 2 Rev. Series 2003-B, 5.75%, 5/1/13 |
| 104,241 |
100,000 |
| Forest Creek Cmnty. Dev. Dist. Impt. Rev. Series 2005-B, 4.85%, 5/1/11 |
| 99,996 |
25,000 |
| Mediterra North Cmnty. Dev. Dist. Impt. Rev. Series 2001-B, 6.00%, 5/1/08 |
| 25,198 |
65,000 |
| Panther Trace II Cmnty. Dev. Rev. Series 2005-B, 5.00%, 11/1/10 |
| 65,394 |
20,000 |
| Parklands Lee Cmnty. Dev. Dist. Rev. Series 2004-B, 5.125%, 5/1/11 |
| 20,119 |
5,000 |
| Parklands West Cmnty. Dev. Dist. Rev. Series 2001-B, 6.00%, 5/1/06 |
| 5,005 |
100,000 |
| Tisons Landing Cmnty. Dev. Dist. Special Assessment Series 2005-B, 5.00%, 11/1/11 |
| 100,591 |
|
|
|
| |
|
|
| 435,624 | |
|
|
| ||
|
|
|
| |
Total municipal bonds (cost: $3,692,657) | 3,691,628 | |||
| ||||
|
|
| ||
Total investments in securities (cost: $3,692,657) (6) | $3,691,628 | |||
|
|
|
See accompanying notes to portfolios of investments on page 58. | 57 |
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(1) | Securities are valued by procedures described in note 1 to the financial statements. |
(2) | Percentage figures indicate percentage of total net assets. |
(3) | At March 31, 2006, 3.8% of net assets in the U.S. Government Securities Fund were invested in GNMA mobile home pass-through securities. |
(4) | Securities the income from which is treated as a tax preference that is included in alternative minimum taxable income for purposes of computing federal alternative minimum tax (AMT). At March 31, 2006, 10.1% of net assets in the Minnesota Tax-Free Income Fund was invested in such securities. |
(5) | Rule 144A Securities, Section 4(2) Commercial Paper, and Municipal Lease Securities (“Restricted Securities”) held by the Funds which have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. |
(6) | At March 31, 2006 the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation based on that cost were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
| Money |
| U.S. |
| Tax-Free |
| |||
|
|
|
|
| ||||||
Cost for federal income tax purposes |
| $ | 69,976,908 |
| $ | 238,937,875 |
| $ | 369,994,518 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
| — |
| $ | 1,039,514 |
| $ | 3,424,522 |
|
Gross unrealized depreciation |
|
| — |
|
| (5,233,498 | ) |
| (11,492,228 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
|
| — |
|
| ($4,193,984 | ) |
| ($8,067,706 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minnesota |
| Florida |
|
|
|
| ||
|
|
|
|
|
|
| ||||
Cost for federal income tax purposes |
| $ | 259,781,037 |
| $ | 3,692,657 |
|
|
|
|
|
|
|
|
|
|
| ||||
| ||||||||||
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 3,318,147 |
| $ | 16,200 |
|
|
|
|
Gross unrealized depreciation |
|
| (1,400,233 | ) |
| (17,229 | ) |
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 1,917,914 |
|
| ($1,029 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
(7) | These securities have been identified by the investment adviser as illiquid securities. The aggregate value of these securities at March 31, 2006, is $8,028,891 and $488,691 in the Tax-Free Income and Minnesota Tax-Free Income Funds respectively, which represents 2.2% and 0.2% of the Fund’s net assets, respectively. |
(8) | Presently non-income producing securities. Items identified are in default as to payment of interest. |
58
|
|
|
|
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|
|
|
| |
|
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| ||
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|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
59
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| March 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
| Money |
| U.S. |
| Tax-Free |
| |||
|
|
|
|
| ||||||
Investments in securities, at identified cost |
| $ | 69,976,908 |
| $ | 238,937,875 |
| $ | 369,994,518 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying |
| $ | 69,976,908 |
| $ | 234,743,891 |
| $ | 361,926,812 |
|
Investments in affiliated mutual funds |
|
| — |
|
| — |
|
| — |
|
Cash in bank on demand deposit |
|
| 664 |
|
| 52,729 |
|
| 3,031,186 |
|
Accrued interest and dividends receivable |
|
| — |
|
| 1,425,471 |
|
| 5,136,732 |
|
Receivable for investment securities sold |
|
| — |
|
| 19,641 |
|
| 686,817 |
|
Receivable for principal paydowns |
|
| — |
|
| 173,874 |
|
| — |
|
Other receivables |
|
| — |
|
| — |
|
| 15,000 |
|
Receivable for Fund shares sold |
|
| — |
|
| 33,923 |
|
| 250,911 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
| 69,977,572 |
|
| 236,449,529 |
|
| 371,047,458 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| 908,250 |
|
| 2,440,485 |
|
Payable for Fund shares redeemed |
|
| — |
|
| 11,112 |
|
| 172,156 |
|
Cash portion of dividends payable to shareholders |
|
| 262,967 |
|
| 970,049 |
|
| 1,236,547 |
|
Other payables |
|
| — |
|
| 1,145 |
|
| 13,046 |
|
Accrued investment management and advisory services fee |
|
| 32,668 |
|
| 164,204 |
|
| 237,117 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
| 295,635 |
|
| 2,054,760 |
|
| 4,099,351 |
|
|
|
|
|
| ||||||
Net assets applicable to outstanding capital stock |
| $ | 69,681,937 |
| $ | 234,394,769 |
| $ | 366,948,107 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 69,681,937 |
| $ | 241,832,800 |
| $ | 404,510,089 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| — |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| — |
|
| (3,244,047 | ) |
| (29,494,276 | ) |
Unrealized appreciation (depreciation) on investments |
|
| — |
|
| (4,193,984 | ) |
| (8,067,706 | ) |
|
|
|
|
| ||||||
|
| $ | 69,681,937 |
| $ | 234,394,769 |
| $ | 366,948,107 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares |
|
| 69,685,412 |
|
| 22,419,940 |
|
| 37,737,329 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 1.00 |
| $ | 10.45 |
| $ | 9.72 |
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
| Minnesota |
| Florida |
| ||
|
|
|
| ||||
Investments in securities, at identified cost |
| $ | 259,781,037 |
| $ | 3,692,657 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying |
| $ | 261,698,951 |
| $ | 3,691,628 |
|
Investments in affiliated mutual funds |
|
| — |
|
| — |
|
Cash in bank on demand deposit |
|
| — |
|
| 17,460 |
|
Accrued interest and dividends receivable |
|
| 3,870,835 |
|
| 66,535 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
Receivable for principal paydowns |
|
| — |
|
| — |
|
Other receivables |
|
| 1,662 |
|
| — |
|
Receivable for Fund shares sold |
|
| 82,600 |
|
| — |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total assets |
|
| 265,654,048 |
|
| 3,775,623 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| 125,546 |
|
| — |
|
Payable for investment securities purchased |
|
| 1,102,724 |
|
| — |
|
Payable for Fund shares redeemed |
|
| 24,137 |
|
| — |
|
Cash portion of dividends payable to shareholders |
|
| 911,220 |
|
| 11,252 |
|
Other payables |
|
| — |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 178,395 |
|
| 2,559 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total liabilities |
|
| 2,342,022 |
|
| 13,811 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 263,312,026 |
| $ | 3,761,812 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 271,106,406 |
| $ | 3,780,347 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| 249 |
|
Accumulated net realized gain (loss) from security transactions |
|
| (9,712,294 | ) |
| (17,755 | ) |
Unrealized appreciation (depreciation) on investments |
|
| 1,917,914 |
|
| (1,029 | ) |
|
|
|
| ||||
|
| $ | 263,312,026 |
| $ | 3,761,812 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Outstanding shares |
|
| 26,014,832 |
|
| 377,721 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 10.12 |
| $ | 9.96 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 66 - 70. | 61 |
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| One Year Ended March 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money |
| U.S. |
| Tax-Free |
| |||
|
|
|
|
| ||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Interest |
| $ | 2,345,370 |
| $ | 12,418,656 |
| $ | 16,288,162 |
|
|
|
|
|
| ||||||
Total income |
|
| 2,345,370 |
|
| 12,418,656 |
|
| 16,288,162 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 463,271 |
|
| 2,156,246 |
|
| 2,841,985 |
|
Less fees and expenses absorbed by investment adviser |
|
| (159,428 | ) |
| (100,000 | ) |
| (105,248 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 303,843 |
|
| 2,056,246 |
|
| 2,736,737 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 2,041,527 |
|
| 10,362,410 |
|
| 13,551,425 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| — |
|
| 750,613 |
|
| 163,813 |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| — |
|
| (4,611,298 | ) |
| (1,877,414 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| — |
|
| (3,860,685 | ) |
| (1,713,601 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 2,041,527 |
| $ | 6,501,725 |
| $ | 11,837,824 |
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minnesota |
| Florida |
| ||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
| |||||||
Interest |
| $ | 12,077,730 |
| $ | 162,199 |
|
|
|
|
| ||||
Total income |
|
| 12,077,730 |
|
| 162,199 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 1,981,777 |
|
| 31,616 |
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total net expenses |
|
| 1,981,777 |
|
| 31,616 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net investment income |
|
| 10,095,953 |
|
| 130,583 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (1,717,166 | ) |
| (848 | ) |
|
|
|
|
|
|
|
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| 2,238,861 |
|
| 3,022 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| 521,695 |
|
| 2,174 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 10,617,648 |
| $ | 132,757 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 66 - 70. | 63 |
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money Market |
| U.S. Government |
| ||||||||
|
|
|
| ||||||||||
| |||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 2,041,527 |
| $ | 539,566 |
| $ | 10,362,410 |
| $ | 9,338,209 |
|
Net realized gain (loss) on investments |
|
| — |
|
| — |
|
| 750,613 |
|
| 445,411 |
|
Net change in unrealized appreciation (depreciation) of investments |
|
| — |
|
| — |
|
| (4,611,298 | ) |
| (5,039,411 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| 2,041,527 |
|
| 539,566 |
|
| 6,501,725 |
|
| 4,744,209 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (2,041,527 | ) |
| (539,566 | ) |
| (10,362,410 | ) |
| (9,338,209 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (2,041,527 | ) |
| (539,566 | ) |
| (10,362,410 | ) |
| (9,338,209 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 296,220,951 |
|
| 200,038,917 |
|
| 71,154,845 |
|
| 79,941,811 |
|
Reinvested distributions |
|
| 1,012,883 |
|
| 370,743 |
|
| 9,696,616 |
|
| 8,604,289 |
|
Payments for shares redeemed |
|
| (265,692,551 | ) |
| (206,878,981 | ) |
| (101,005,681 | ) |
| (112,984,057 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital share transactions |
|
| 31,541,283 |
|
| (6,469,321 | ) |
| (20,154,220 | ) |
| (24,437,957 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| 31,541,283 |
|
| (6,469,321 | ) |
| (24,014,905 | ) |
| (29,031,957 | ) |
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 38,140,654 |
|
| 44,609,975 |
|
| 258,409,674 |
|
| 287,441,631 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 69,681,937 |
| $ | 38,140,654 |
| $ | 234,394,769 |
| $ | 258,409,674 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 296,221,341 |
|
| 200,038,917 |
|
| 6,709,932 |
|
| 7,477,550 |
|
Reinvested distributions |
|
| 1,012,883 |
|
| 370,743 |
|
| 913,343 |
|
| 803,437 |
|
Redeemed |
|
| (265,692,551 | ) |
| (206,878,981 | ) |
| (9,546,473 | ) |
| (10,566,532 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 31,541,673 |
|
| (6,469,321 | ) |
| (1,923,198 | ) |
| (2,285,545 | ) |
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota Tax-Free |
| Florida Tax-Free |
| ||||||||||||
|
|
|
|
| |||||||||||||||
| |||||||||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 13,551,425 |
| $ | 13,084,617 |
| $ | 10,095,953 |
| $ | 9,583,129 |
| $ | 130,583 |
| $ | 86,155 |
|
Net realized gain (loss) on investments |
|
| 163,813 |
|
| 167,720 |
|
| (1,717,166 | ) |
| (866,459 | ) |
| (848 | ) |
| (16,907 | ) |
Net change in unrealized appreciation (depreciation) of investments |
|
| (1,877,414 | ) |
| (4,863,575 | ) |
| 2,238,861 |
|
| (2,863,486 | ) |
| 3,022 |
|
| (12,025 | ) |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| 11,837,824 |
|
| 8,388,762 |
|
| 10,617,648 |
|
| 5,853,184 |
|
| 132,757 |
|
| 57,223 |
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (13,551,425 | ) |
| (13,084,617 | ) |
| (10,095,953 | ) |
| (9,583,129 | ) |
| (130,583 | ) |
| (86,155 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (13,551,425 | ) |
| (13,084,617 | ) |
| (10,095,953 | ) |
| (9,583,129 | ) |
| (130,583 | ) |
| (86,155 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 102,432,805 |
|
| 87,033,580 |
|
| 82,036,189 |
|
| 76,385,175 |
|
| 1,659,197 |
|
| 908,356 |
|
Reinvested distributions |
|
| 11,757,251 |
|
| 11,151,316 |
|
| 8,392,121 |
|
| 7,518,703 |
|
| 123,600 |
|
| 83,963 |
|
Payments for shares redeemed |
|
| (99,396,238 | ) |
| (91,902,209 | ) |
| (60,672,379 | ) |
| (64,912,684 | ) |
| (1,195,917 | ) |
| (438,402 | ) |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital share transactions |
|
| 14,793,818 |
|
| 6,282,687 |
|
| 29,755,931 |
|
| 18,991,194 |
|
| 586,880 |
|
| 553,917 |
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| 13,080,217 |
|
| 1,586,832 |
|
| 30,277,626 |
|
| 15,261,249 |
|
| 589,054 |
|
| 524,985 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 353,867,890 |
|
| 352,281,058 |
|
| 233,034,400 |
|
| 217,773,151 |
|
| 3,172,758 |
|
| 2,647,773 |
|
|
|
|
|
|
|
|
| ||||||||||||
End of period |
| $ | 366,948,107 |
| $ | 353,867,890 |
| $ | 263,312,026 |
| $ | 233,034,400 |
| $ | 3,761,812 |
| $ | 3,172,758 |
|
�� |
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 10,475,538 |
|
| 8,870,281 |
|
| 8,076,581 |
|
| 7,547,028 |
|
| 166,249 |
|
| 91,158 |
|
Reinvested distributions |
|
| 1,201,483 |
|
| 1,136,292 |
|
| 826,211 |
|
| 743,012 |
|
| 12,389 |
|
| 8,422 |
|
Redeemed |
|
| (10,161,560 | ) |
| (9,369,595 | ) |
| (5,976,372 | ) |
| (6,424,729 | ) |
| (120,146 | ) |
| (43,911 | ) |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 1,515,461 |
|
| 636,978 |
|
| 2,926,420 |
|
| 1,865,311 |
|
| 58,492 |
| $ | 55,669 |
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 66 - 70. | 65 |
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
| (1) | Summary of Significant Accounting Policies |
|
| The Sit Mutual Funds (the Funds) are 100% no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified (except Minnesota and Florida Tax-Free Income Funds which are non - diversified), open-end management investment companies, or series thereof. The Sit Minnesota Tax-Free Income Fund and the Sit Tax-Free Income Fund are series funds of Sit Mutual Funds II, Inc. The Sit Florida Tax-Free Income Fund is a series fund of Sit Mutual Funds Trust. Each fund has 10 billion authorized shares of capital stock. Shares in the U.S. Government Securities Fund have a par value of $0.01, and shares in other funds have a par value of $0.001. This report covers the bond funds of the Sit Mutual Funds. The investment objective for each Fund is as follows: |
|
|
|
|
| Significant accounting policies followed by the Funds are summarized below: |
|
|
|
Fund |
| Investment Objectives |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in Securities |
| Securities maturing more than 60 days from the valuation date, with the exception of those in Money Market Fund, are valued at the market price supplied by an independent pricing vendor based on current interest rates; those securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates market value. When market quotations are not readily available, or when the Adviser becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Board of Directors. Pursuant to Rule 2a-7 of the Investment Company Act of 1940, all securities in the Money Market Fund are valued at amortized cost, which approximates market value, in order to maintain a constant net asset value of $1 per share. |
|
|
| Security transactions are accounted for on the date the securities are purchased or sold. Gains and losses are calculated on the identified-cost basis. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. Dividends received from closed-end fund holdings are included in Interest Income and are generated from the underlying investments. |
66
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| Delivery and payment for securities which have been purchased by the Funds on a forward commitment or when-issued basis can take place two weeks or more after the transaction date. During this period, such securities are subject to market fluctuations and may increase or decrease in value prior to delivery, and the Funds maintain segregated assets with a market value greater than the amount of their purchase commitments. As of March 31, 2006, there were no Funds that had entered into when-issued or forward commitments. |
|
|
| The Minnesota Tax-Free Income Fund concentrates its investments in Minnesota, and therefore may have more credit risk related to the economic conditions in the state of Minnesota than a portfolio with broader geographical diversification. |
|
|
| The Florida Tax-Free Income Fund concentrates its investments in Florida, and therefore may have more credit risk related to the economic conditions in the state of Florida than a portfolio with broader geographical diversification. |
|
|
| Line of Credit |
| The Funds have a $25,000,000 committed line of credit through PNC Bank, N.A., whereby the Funds may borrow for the temporary funding of shareholder redemptions or for other temporary purposes. Interest is charged to each Fund based on its borrowings at a rate equal to the Federal Funds Rate plus fifty basis points (0.50%). The Funds had no borrowings outstanding during the year ended March 31, 2006. |
|
|
| Federal Taxes |
| The Funds’ policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis. |
|
|
| Net investment income and net realized gains may differ for financial statement and tax purposes. The character of distributions made during the year for net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. The tax character of distributions paid during the fiscal years ended March 31, 2006 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Year Ended March 31, 2006: |
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
| |||||||
|
|
| Ordinary Income |
| Long Term Capital Gain |
| Total |
| |||||||
|
|
|
|
|
| ||||||||||
| Money Market |
|
| $ | 2,041,527 |
|
|
| — |
|
| $ | 2,041,527 |
|
|
| U.S. Government Securities |
|
| $ | 10,362,410 |
|
|
| — |
|
| $ | 10,362,410 |
|
|
| Tax-Free Income (*) |
|
| $ | 13,551,425 |
|
|
| — |
|
| $ | 13,551,425 |
|
|
| MN Tax-Free Income (*) |
|
| $ | 10,095,953 |
|
|
| — |
|
| $ | 10,095,953 |
|
|
| FL Tax-Free Income (*) |
|
| $ | 130,583 |
|
|
| — |
|
| $ | 130,583 |
|
|
|
|
| (*) 100% of dividends were derived from interest on tax-exempt securities. |
67
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31, 2005: |
|
|
|
|
|
|
|
|
|
| ||||
| ||||||||||||||
|
| Ordinary Income |
| Long Term Capital Gain |
| Total |
| |||||||
|
|
|
|
| ||||||||||
Money Market |
|
| $ | 539,566 |
|
|
| — |
|
| $ | 539,566 |
|
|
U.S. Government Securities |
|
| $ | 9,338,209 |
|
|
| — |
|
| $ | 9,338,209 |
|
|
Tax-Free Income (*) |
|
| $ | 13,084,617 |
|
|
| — |
|
| $ | 13,084,617 |
|
|
MN Tax-Free Income (*) |
|
| $ | 9,583,129 |
|
|
| — |
|
| $ | 9,583,129 |
|
|
FL Tax-Free Income (*) |
|
| $ | 86,155 |
|
|
| — |
|
| $ | 86,155 |
|
|
| (*) 100% of dividends were derived from interest on tax-exempt securities. |
|
|
| As of March 31, 2006, the components of distributable earnings on a tax basis were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Accumulated |
| Unrealized |
| |||||||||
|
|
|
|
| ||||||||||||
Money Market |
|
| $ | 262,967 |
|
|
|
| — |
|
|
|
| — |
|
|
U.S. Government Securities |
|
| $ | 970,049 |
|
|
| ($ | 4,003,724 | ) |
|
| ($ | 4,193,984 | ) |
|
Tax-Free Income |
|
| $ | 1,236,547 |
|
|
| ($ | 29,494,276 | ) |
|
| ($ | 8,067,706 | ) |
|
MN Tax-Free Income |
|
| $ | 911,220 |
|
|
| ($ | 9,712,294 | ) |
|
| $ | 1,917,914 |
|
|
FL Tax-Free Income |
|
| $ | 11,501 |
|
|
| ($ | 17,755 | ) |
|
| ($ | 1,029 | ) |
|
|
|
| Undistributed net investment income and accumulated net realized gains from the Statements of Assets and Liabilities have been increased (decreased) by current permanent book-to-tax differences resulting in reclassifications of $249 in the Florida Tax Free Income Fund. |
|
|
| As of March 31, 2006, for federal income tax purposes, some Funds have capital loss carryovers which, if not offset by subsequent gains, will begin to expire as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Carryover |
| Expiration Year |
|
|
|
| ||||
|
|
|
|
|
|
| ||||||
U.S. Government Securities |
|
| $ | 4,003,724 |
|
| 2007 |
|
|
|
|
|
Tax-Free Income |
|
| $ | 29,494,276 |
|
| 2008 |
|
|
|
|
|
MN Tax-Free Income |
|
| $ | 9,712,294 |
|
| 2008 |
|
|
|
|
|
FL Tax-Free Income |
|
| $ | 17,755 |
|
| 2013 |
|
|
|
|
|
|
|
| Distributions |
| Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds’ capital stock. Distributions from net investment income are declared daily and paid monthly for the Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds. |
68
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
| Use of Estimates |
|
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. Actual results could differ from those estimates. |
|
|
|
| (2) | Investment Security Transactions |
|
| Purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended March 31, 2006, were as follows: |
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| ||
|
|
|
| ||||
U.S. Government Securities Fund |
| 328,395,049 |
|
| 346,445,838 |
|
|
Tax-Free Income Fund |
| 273,923,758 |
|
| 258,472,491 |
|
|
Minnesota Tax-Free Income Fund |
| 235,871,718 |
|
| 205,634,995 |
|
|
Florida Tax-Free Income Fund |
| 2,456,095 |
|
| 1,799,344 |
|
|
|
|
|
|
| For the Money Market Fund during the period ended March 31, 2006 purchases of and proceeds from sales and maturities of investment securities aggregated $1,327,785,532 and $1,298,391,846, respectively. |
|
|
|
| (3) | Expenses |
|
| Investment Adviser |
|
| The Funds each have entered into an investment management agreement with Sit Investment Associates Inc. (SIA), under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. SIA also is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, and other transaction charges relating to investing activities). The fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of: |
|
|
|
|
|
|
| Average Daily |
| |
|
| Net Assets |
| |
|
|
| ||
Tax-Free Income Fund |
|
| .80% |
|
Minnesota Tax-Free Income Fund |
|
| .80% |
|
Florida Tax-Free Income Fund |
|
| .80% |
|
|
|
|
|
|
|
|
|
|
| First |
| Over |
| ||
|
| $50 Million |
| $50 Million |
| ||
|
|
|
| ||||
Money Market Fund |
| .80 | % |
| .60 | % |
|
U.S. Government Securities Fund |
| 1.00 | % |
| .80 | % |
|
|
|
| For the period October 1, 1993, through December 31, 2006, the Adviser has voluntarily agreed to limit the flat monthly fee (and, thereby, all Fund expenses, except extraordinary expenses, interest, brokerage commissions and other transaction charges not payable by the Adviser) paid by the Tax-Free Income Fund to an annual rate |
69
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| of .70% of the Fund’s average daily net assets in excess of $250 million and .60% of the Fund’s average daily net assets in excess of $500 million. After December 31, 2006, this voluntary fee waiver may be discontinued by the Adviser in its sole discretion. |
|
|
| For the period October 1, 1993, through December 31, 2006, the Adviser has voluntarily agreed to limit the flat monthly fee (and, thereby, all Fund expenses, except extraordinary expenses, interest, brokerage commissions and other transaction charges not payable by the Adviser) paid by the U.S. Government Securities Fund and Money Market Fund to an annual rate of .80% and .50%, respectively of the Fund’s average daily net assets. After December 31, 2006, this voluntary fee waiver may be discontinued by the Adviser in its sole discretion. |
|
|
| Transactions with affiliates |
| The investment adviser, affiliates of the investment adviser, directors and officers of the Funds as a whole owned the following shares as of March 31, 2006: |
|
|
|
|
|
|
|
|
|
| Shares |
| % Shares |
| ||
|
|
|
| ||||
Money Market Fund |
| 39,938,111 |
|
| 57.3 | (*) |
|
U.S. Government Securities Fund |
| 501,473 |
|
| 2.2 |
|
|
Tax-Free Income Fund |
| 1,903,673 |
|
| 5.0 |
|
|
Minnesota Tax-Free Income Fund |
| 1,492,528 |
|
| 5.7 |
|
|
Florida Tax-Free Income Fund |
| 247,459 |
|
| 65.5 |
|
|
|
|
|
|
| (*) 49.9% of shares owned by other Sit Mutual Funds. |
|
| |
| (4) | Financial Highlights |
|
| Per share data for a share of capital stock outstanding during the period and selected supplemental and ratio information for each period(s), are indicated on pages 71 through 75. |
70
|
|
|
|
|
|
|
|
| |
| Sit Money Market Fund |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
|
| 2006 |
|
| 2005 |
|
| 2004 |
|
| 2003 |
|
| 2002 |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| 0.03 |
|
| 0.01 |
|
| 0.01 |
|
| 0.01 |
|
| 0.03 |
|
Total from operations |
|
| 0.03 |
|
| 0.01 |
|
| 0.01 |
|
| 0.01 |
|
| 0.03 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.03 | ) |
| (0.01 | ) |
| (0.01 | ) |
| (0.01 | ) |
| (0.03 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Total investment return (1) |
|
| 3.28 | % |
| 1.24 | % |
| 0.60 | % |
| 1.13 | % |
| 2.63 | % |
Net assets at end of period (000’s omitted) |
| $ | 69,682 |
| $ | 38,141 |
| $ | 44,610 |
| $ | 73,843 |
| $ | 93,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 0.50 | % (2) |
| 0.50 | % (2) |
| 0.50 | % (2) |
| 0.50 | % (2) |
| 0.50 | % (2) |
Net investment income to average daily net assets |
|
| 3.35 | % (2) |
| 1.22 | % (2) |
| 0.60 | % (2) |
| 1.14 | % (2) |
| 2.65 | % (2) |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Total Fund expenses are contractually limited to .80% of average daily net assets for the first $50 million in Fund net assets and .60% of average daily net assets for Fund net assets exceeding $50 million. However, during the years ended March 31, 2006, 2005, 2004, 2003 and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been .76%, .80%, .76%, .74%, and .70% for each of these periods and the ratio of net investment income to average daily net assets would have been 3.09%, .92%, .34%, .90%, and 2.45%, respectively. |
71
|
|
|
|
|
|
|
|
|
|
| Sit U.S. Government Securities Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.62 |
| $ | 10.79 |
| $ | 10.83 |
| $ | 10.69 |
| $ | 10.59 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| .43 |
|
| .38 |
|
| .27 |
|
| .45 |
|
| .58 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.17 | ) |
| (.17 | ) |
| (.04 | ) |
| .14 |
|
| .10 |
|
Total from operations |
|
| .26 |
|
| .21 |
|
| .23 |
|
| .59 |
|
| .68 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.43 | ) |
| (.38 | ) |
| (.27 | ) |
| (.45 | ) |
| (.58 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| �� |
|
Total Distributions |
|
| (.43 | ) |
| (.38 | ) |
| (.27 | ) |
| (.45 | ) |
| (.58 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 10.45 |
| $ | 10.62 |
| $ | 10.79 |
| $ | 10.83 |
| $ | 10.69 |
|
Total investment return (1) |
|
| 2.45 | % |
| 1.93 | % |
| 2.19 | % |
| 5.60 | % |
| 6.53 | % |
Net assets at end of period (000’s omitted) |
| $ | 234,395 |
| $ | 258,410 |
| $ | 287,442 |
| $ | 408,840 |
| $ | 211,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 0.80 | % (2) |
| 0.80 | %(2) |
| 0.80 | % (2) |
| 0.80 | % (2) |
| 0.80 | % (2) |
Net investment income to average daily net assets |
|
| 4.03 | % (2) |
| 3.51 | %(2) |
| 2.48 | % (2) |
| 3.98 | % (2) |
| 5.40 | % (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 60.37 | % |
| 36.64 | % |
| 61.99 | % |
| 77.06 | % |
| 54.69 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Total Fund expenses are contractually limited to 1.00% of average daily net assets for the first $50 million in Fund net assets and .80% of average daily net assets for Fund net assets exceeding $50 million. However, during the years ended March 31, 2006, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been .84%, .84%, .83%, .83%, and .85% for each of these periods and the ratio of net investment income to average daily net assets would have been 3.99%, 3.47%, 2.45%, 3.95%, and 5.35%, respectively. |
72
|
|
|
|
|
|
|
|
| |
| Sit Tax-Free Income Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 9.77 |
| $ | 9.90 |
| $ | 9.94 |
| $ | 9.82 |
| $ | 9.90 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| .37 |
|
| .38 |
|
| .42 |
|
| .45 |
|
| .48 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.05 | ) |
| (.13 | ) |
| (.04 | ) |
| .12 |
|
| (.08 | ) |
Total from operations |
|
| .32 |
|
| .25 |
|
| .38 |
|
| .57 |
|
| .40 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.37 | ) |
| (.38 | ) |
| (.42 | ) |
| (.45 | ) |
| (.48 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.37 | ) |
| (.38 | ) |
| (.42 | ) |
| (.45 | ) |
| (.48 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 9.72 |
| $ | 9.77 |
| $ | 9.90 |
| $ | 9.94 |
| $ | 9.82 |
|
Total investment return (1) |
|
| 3.35 | % |
| 2.54 | % |
| 3.89 | % |
| 5.90 | % |
| 4.05 | % |
Net assets at end of period (000’s omitted) |
| $ | 366,948 |
| $ | 353,868 |
| $ | 352,281 |
| $ | 414,419 |
| $ | 440,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 0.77 | % (2) |
| 0.77 | % (2) |
| 0.76 | % (2) |
| 0.76 | % (2) |
| 0.75 | % (2) |
Net investment income to average daily net assets |
|
| 3.81 | % (2) |
| 3.84 | % (2) |
| 4.23 | % (2) |
| 4.53 | % (2) |
| 4.79 | % (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 32.93 | % |
| 41.29 | % |
| 32.33 | % |
| 37.98 | % |
| 40.02 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Total Fund expenses are contractually limited to .80% of average daily net assets. However, during the years ended March 31, 2006, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been .80% for these periods, and the ratio of net investment income to average daily net assets would have been 3.78%, 3.81%, 4.19%, 4.49%, and 4.74%, respectively. |
73
|
|
|
|
|
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.09 |
| $ | 10.26 |
| $ | 10.22 |
| $ | 9.99 |
| $ | 10.01 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| .41 |
|
| .44 |
|
| .46 |
|
| .47 |
|
| .49 |
|
Net realized and unrealized gains (losses) on investments |
|
| .03 |
|
| (.17 | ) |
| .04 |
|
| .23 |
|
| (.02 | ) |
Total from operations |
|
| .44 |
|
| .27 |
|
| .50 |
|
| .70 |
|
| .47 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.41 | ) |
| (.44 | ) |
| (.46 | ) |
| (.47 | ) |
| (.49 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 10.12 |
| $ | 10.09 |
| $ | 10.26 |
| $ | 10.22 |
| $ | 9.99 |
|
Total investment return (1) |
|
| 4.46 | % |
| 2.69 | % |
| 4.99 | % |
| 7.14 | % |
| 4.74 | % |
Net assets at end of period (000’s omitted) |
| $ | 263,312 |
| $ | 233,034 |
| $ | 217,773 |
| $ | 219,368 |
| $ | 195,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Net investment income to average daily net assets |
|
| 4.07 | % |
| 4.33 | % |
| 4.47 | % |
| 4.62 | % |
| 4.87 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 54.91 | % |
| 29.33 | % |
| 27.31 | % |
| 19.51 | % |
| 23.81 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
74
|
|
|
|
|
|
|
|
| |
| Sit Florida Tax-Free Income Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| Three months |
| |||||
|
|
|
|
| ||||||
|
| 2006 |
| 2005 |
| 2004 |
| |||
Net Asset Value: |
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Beginning of period |
| $ | 9.94 |
| $ | 10.05 |
| $ | 10.00 |
|
Operations: |
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Net investment income |
|
| .33 |
|
| .29 |
|
| .06 |
|
Net realized and unrealized gains (losses) on investments |
|
| .02 |
|
| (.11 | ) |
| .05 |
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Total from operations |
|
| .35 |
|
| .18 |
|
| .11 |
|
Distributions to Shareholders: |
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From net investment income |
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| (.33 | ) |
| (.29 | ) |
| (.06 | ) |
Net Asset Value: |
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End of period |
| $ | 9.96 |
| $ | 9.94 |
| $ | 10.05 |
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Total investment return (1) |
|
| 3.55 | % |
| 1.84 | % |
| 1.08 | % |
Net assets at end of period (000’s omitted) |
| $ | 3,762 |
| $ | 3,173 |
| $ | 2,648 |
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Ratios: |
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Expenses to average daily net assets |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % (2) |
Net investment income to average daily net assets |
|
| 3.30 | % |
| 2.93 | % |
| 2.49 | % (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 58.46 | % |
| 29.52 | % |
| 3.45 | % |
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| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
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| (2) | Adjusted to an annual rate. |
75
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| Public Accounting Firm |
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| The Board of Directors and Shareholders |
| Sit Money Market Fund, Inc. |
| Sit U.S. Government Securities Fund, Inc. |
| Sit Mutual Funds II, Inc. |
| Sit Mutual Funds Trust: |
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| We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Sit Money Market Fund, Inc., Sit U.S. Government Securities Fund, Inc., Sit Tax-Free Income Fund (a series of Sit Mutual Funds II, Inc.), Sit Minnesota Tax-Free Income Fund (a series of Sit Mutual Funds II, Inc.), and Sit Florida Tax-Free Income Fund (a series of Sit Mutual Funds Trust) (the “Funds”), as of March 31, 2006, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. |
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| We conducted our audits in accordance with the standards of the Public Company Accounting Oversights Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2006, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
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| In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit Money Market Fund, Sit U.S. Government Securities Fund, Sit Tax-Free Income Fund, Sit Minnesota Tax-Free Income Fund, and Sit Florida Tax-Free Income Fund as of March 31, 2006, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and their financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles. |
|
|
| KPMG LLP |
| Minneapolis, Minnesota |
| May 12, 2006 |
76
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| Sit Mutual Funds |
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As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. |
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2005 to March 31, 2006. |
|
Actual Expenses |
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
|
Hypothetical Example for Comparison Purposes |
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio 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 period. 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 shareholder reports of the other funds. |
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs (redemption fees) were included, your costs would have been higher. |
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| Beginning | Ending | Expenses Paid |
| Account Value | Account Value | During Period* |
Money Market Fund | (10/1/05) | (3/31/06) | (10/1/05 - 3/31/06) |
Actual | $1,000.00 | $1,018.80 | $2.50 |
Hypothetical | $1,000.00 | $1,022.50 | $2.51 |
|
|
* | Expenses are equal to the Fund’s annualized expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
77
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| Sit Mutual Funds |
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| Expense Example (Continued) |
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U.S. Government | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,006.40 | $3.98 |
Hypothetical | $1,000.00 | $1,021.00 | $4.01 |
|
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* | Expenses are equal to the Fund’s annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.) |
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Tax-Free Income Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,012.10 | $3.84 |
Hypothetical | $1,000.00 | $1,021.15 | $3.86 |
|
|
* | Expenses are equal to the Fund’s annualized expense ratio of 0.77%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.) |
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Minnesota Tax-Free | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,016.30 | $4.00 |
Hypothetical | $1,000.00 | $1,021.00 | $4.01 |
|
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* | Expenses are equal to the Fund’s annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.) |
78
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Florida Tax-Free | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,015.20 | $4.00 |
Hypothetical | $1,000.00 | $1,021.00 | $4.01 |
|
|
* | Expenses are equal to the Fund’s annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
79
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| Sit Mutual Funds |
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We are required by Federal tax regulations to provide shareholders with certain information regarding dividend distributions on an annual fiscal year basis. The figures are for information purposes only and should not be used for reporting to federal or state revenue agencies. All necessary tax information will be mailed in January each year.
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Fund and Payable Date |
|
| Ordinary |
| Long-Term |
| ||
|
|
| ||||||
Money Market Fund |
|
|
|
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|
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| |
|
|
|
|
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|
|
| |
April 30, 2005 |
| $ | 0.00187 |
| $ | — |
| |
May 31, 2005 |
|
| 0.00217 |
|
| — |
| |
June 30, 2005 |
|
| 0.00214 |
|
| — |
| |
July 31, 2005 |
|
| 0.00221 |
|
| — |
| |
August 31, 2005 |
|
| 0.00269 |
|
| — |
| |
September 30, 2005 |
|
| 0.00259 |
|
| — |
| |
October 31, 2005 |
|
| 0.00281 |
|
| — |
| |
November 30, 2005 |
|
| 0.00293 |
|
| — |
| |
December 31, 2005 |
|
| 0.00304 |
|
| — |
| |
January 31, 2006 |
|
| 0.00342 |
|
| — |
| |
February 28, 2006 |
|
| 0.00307 |
|
| — |
| |
March 31, 2006 |
|
| 0.00348 |
|
| — |
| |
|
|
|
| |||||
|
| $ | 0.03241 | (c) | $ | 0.00000 |
| |
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Tax-Free Income Fund |
|
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| |
|
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|
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|
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| |
April 30, 2005 |
| $ | 0.02967 |
| $ | — |
| |
May 31, 2005 |
|
| 0.03293 |
|
| — |
| |
June 30, 2005 |
|
| 0.03063 |
|
| — |
| |
July 31, 2005 |
|
| 0.02923 |
|
| — |
| |
August 31, 2005 |
|
| 0.03310 |
|
| — |
| |
September 30, 2005 |
|
| 0.03042 |
|
| — |
| |
October 31, 2005 |
|
| 0.03097 |
|
| — |
| |
November 30, 2005 |
|
| 0.03032 |
|
| — |
| |
December 31, 2005 |
|
| 0.03053 |
|
| — |
| |
January 31, 2006 |
|
| 0.03275 |
|
| — |
| |
February 28, 2006 |
|
| 0.02927 |
|
| — |
| |
March 31, 2006 |
|
| 0.03331 |
|
| — |
| |
|
|
|
| |||||
|
| $ | 0.37313 | (d) | $ | 0.00000 |
| |
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Fund and Payable Date |
|
| Ordinary |
| Long-Term |
| ||
|
|
| ||||||
U.S. Government Securities Fund |
|
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| |
|
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|
|
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| |
April 30, 2005 |
| $ | 0.02918 |
| $ | — |
| |
May 31, 2005 |
|
| 0.03498 |
|
| — |
| |
June 30, 2005 |
|
| 0.03508 |
|
| — |
| |
July 31, 2005 |
|
| 0.03094 |
|
| — |
| |
August 31, 2005 |
|
| 0.03786 |
|
| — |
| |
September 30, 2005 |
|
| 0.03290 |
|
| — |
| |
October 31, 2005 |
|
| 0.03560 |
|
| — |
| |
November 30, 2005 |
|
| 0.03669 |
|
| — |
| |
December 31, 2005 |
|
| 0.03555 |
|
| — |
| |
January 31, 2006 |
|
| 0.03817 |
|
| — |
| |
February 28, 2006 |
|
| 0.03959 |
|
| — |
| |
March 31, 2006 |
|
| 0.04198 |
|
| — |
| |
|
|
|
| |||||
|
| $ | 0.42851 | (c) | $ | 0.00000 |
| |
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| |||||
|
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Minnesota Tax-Free Income Fund |
|
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| |
|
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April 30, 2005 |
|
| 0.03254 |
|
| — |
| |
May 31, 2005 |
|
| 0.03952 |
|
| — |
| |
June 30, 2005 |
|
| 0.03530 |
|
| — |
| |
July 31, 2005 |
|
| 0.03316 |
|
| — |
| |
August 31, 2005 |
|
| 0.03781 |
|
| — |
| |
September 30, 2005 |
|
| 0.03131 |
|
| — |
| |
October 31, 2005 |
|
| 0.03439 |
|
| — |
| |
November 30, 2005 |
|
| 0.03370 |
|
| — |
| |
December 31, 2005 |
|
| 0.03396 |
|
| — |
| |
January 31, 2006 |
|
| 0.03548 |
|
| — |
| |
February 28, 2006 |
|
| 0.03166 |
|
| — |
| |
March 31, 2006 |
|
| 0.03517 |
|
| — |
| |
|
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| |||||
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| $ | 0.41400 | (d) | $ | 0.00000 |
| |
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80
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Fund and Payable Date |
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| Ordinary |
| Long-Term |
| ||
|
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| ||||||
Florida Tax-Free Income Fund |
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| |
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April 30, 2005 |
| $ | 0.02430 |
| $ | — |
| |
May 31, 2005 |
|
| 0.02582 |
|
| — |
| |
June 30, 2005 |
|
| 0.02452 |
|
| — |
| |
July 31, 2005 |
|
| 0.02591 |
|
| — |
| |
August 31, 2005 |
|
| 0.02978 |
|
| — |
| |
September 30, 2005 |
|
| 0.02770 |
|
| — |
| |
October 31, 2005 |
|
| 0.02851 |
|
| — |
| |
November 30, 2005 |
|
| 0.02710 |
|
| — |
| |
December 31, 2005 |
|
| 0.02760 |
|
| — |
| |
January 31, 2006 |
|
| 0.03079 |
|
| — |
| |
February 28, 2006 |
|
| 0.02700 |
|
| — |
| |
March 31, 2006 |
|
| 0.02979 |
|
| — |
| |
|
|
|
| |||||
|
| $ | 0.32881 | (d) | $ | 0.00000 |
| |
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(a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
| |
(b) | Taxable as long-term gain. |
| |
(c) | Taxable as dividend income and does not qualify for deduction by corporations or reduced dividend income tax rate for individuals. |
| |
(d) | 100% of dividends were derived from interest on tax-exempt securities. This portion of exempt-interest dividends is exempt from federal taxes and should not be included in shareholders' gross income. Exempt-interest dividends may be subject to state and local taxes. Each shareholder should consult a tax adviser about reporting this income for state and local tax purposes. |
81
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| Sit Mutual Funds |
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The Sit Mutual Funds are a family of 13 no-load mutual funds. The five Bond Funds described in this Bond Funds Annual Report are the Sit Money Market Fund, Sit U.S. Government Securities Fund, Sit Tax-Free Income Fund, Sit Minnesota Tax-Free Income Fund, and Sit Florida Tax-Free Income Fund (the “Funds” or individually, a “Fund”). The eight Stock Funds within the Sit Mutual Fund family are described in The Stock Funds Annual Report. The Sit Money Market Fund, Sit U.S. Government Securities Fund, the corporate issuer of the Sit Florida Tax-Free Income Fund and the corporate issuer of the Sit Tax-Free Income Fund and the Sit Minnesota Tax-Free Income Fund have a Board of Directors and officers. Pursuant to Minnesota law, the Boards of Directors are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day-to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below. The business address, unless otherwise noted below, is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The Bond Funds’ SAI has additional information about the Funds directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
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Name, | Position | Term of Office(1) | Principal | Number of | Other |
Interested Directors: |
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82
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Name, | Position | Term of Office(1) | Principal | Number of | Other |
Independent Directors(5): |
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83
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| Sit Mutual Funds |
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| Information about Directors and Officers (Continued) |
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Name, | Position | Term of Office(1) | Principal | Number of | Other |
Officers: |
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84
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Name, | Position | Term of Office(1) | Principal | Number of | Other |
Officers (Continued): |
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(1) | Directors serve until their death, resignation, removal or the next shareholder meeting at which election of directors is an agenda item and a successor is duly elected and qualified. |
(2) | Directors who are deemed to be “interested persons” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Sit is considered an “interested person” because he is an officer of Sit Investment Associates, Inc., the Fund’s investment adviser. Mr. Frenzel is deemed to be an interested person because he is a director and shareholder of the Fund’s investment adviser. |
(3) | Mr. Roger Sit is the son of Eugene C. Sit. Ms. Debra Sit is the daughter of Eugene C. Sit. |
(4) | Includes only directorships of companies required to report under the Securities Exchange Act of 1934 (i.e., public companies) or other investment companies registered under the 1940 Act. |
(5) | Director John E. Hulse served as Director of the Funds from 1995 until his death on December 24, 2005. |
85
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| Sit Mutual Funds |
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| Additional Information |
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| PROXY VOTING Each Fund follows certain policies and procedures for voting proxies for securities held in each portfolio. A description of the Funds’ proxy voting polices and procedures is available without charge upon request by calling the Funds at 1-800-332-5580. AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES The Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. 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. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580. RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT At their joint meeting held on October 17, 2005 the Boards of Directors of the Sit Mutual Funds unanimously approved the continuation for another one year period the investment management agreements entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mutual Funds II, Inc. dated November 1, 1992; Sit U.S. Government Securities Fund, Inc. dated November 1, 1992; Sit Money Market Fund, Inc. dated November 1, 1992; and Sit Mutual Funds Trust dated December 15, 2003 (the “Advisory Agreements”). |
86
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| Investment Philosophy and Process. The Directors considered SIA’s philosophy of managing assets. With respect to fixed income securities, SIA stresses the consistent attainment of superior risk-adjusted returns using a conservative investment management approach that identifies pricing anomalies in the market and management of portfolio duration. With respect to fixed income securities, SIA seeks investment grade securities with a special emphasis on interest income and significant stability of principal value. SIA’s style seeks to avoid excessive return volatility and generate consistent results over an economic cycle. The Directors noted that the Bond Funds’ objectives are to seek high current income. The Directors reviewed the Bond Funds’ characteristics, and noted that SIA has consistently managed the Bond Funds in this style. The Directors noted that since the Bond Funds emphasize income, they may at times not rank highly in total return comparisons with other funds during certain periods. The Directors discussed SIA’s consistent and well-defined investment process. With respect to fixed income securities, the port folio managers are responsible for implementing the strategy set forth in the Chief Fixed Income Officer’s duration targets and the Chief Investment Officer’s interest rate projections. |
87
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| Sit Mutual Funds |
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| Additional Information (Continued) |
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| Review of Specific Factors Investment Performance Fees and Expenses The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund’s assets, which included reviewing each Fund’s current and historical assets and the likelihood and magnitude of future increases in the Fund’s assets. It was noted that three of the fixed-income funds have tiered investment fee schedules after SIA’s voluntary fee waiver. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds’ assets increase. However, the Directors concluded that given the limited size of the Funds, negotiating a graduated fee structure for each Fund is unnecessary since it is unlikely that the size of the Funds will increase enough to justify a graduated fee schedule within the near future. |
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| The Directors discussed the extent to which SIA receives benefits from the relationship with the Funds such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Board concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms and are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable. |
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A Look at Sit Mutual Funds
Sit Mutual Funds are managed by Sit Investment Associates, Inc. Sit Investment Associates was founded by Eugene C. Sit in July 1981 and is dedicated to a single purpose, to be one of the premier investment management firms in the United States. Sit Investment Associates currently manages approximately $6.8 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of thirteen no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
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| • | Free telephone exchange |
| • | Dollar-cost averaging through an automatic investment plan |
| • | Electronic transfer for purchases and redemptions |
| • | Free checkwriting privileges on Bond Funds |
| • | Retirement accounts including IRAs and 401(k) plans |
90
A N N U A L R E P O R T B O N D F U N D S
One Year Ended March 31, 2006
INVESTMENT ADVISER
Sit Investment Associates, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
612-334-5888 (Metro Area)
800-332-5580
DISTRIBUTOR
SIA Securities Corp.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
612-334-5888 (Metro Area)
800-332-5580
CUSTODIAN
PFPC Trust Company
P. O. Box 9763
Providence, RI 02940
TRANSFER AGENT AND
DISBURSING AGENT
PFPC, Inc.
P.O. Box 9763
Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
KPMG LLP
90 South Seventh Street
Suite 4200
Minneapolis, MN 55402
LEGAL COUNSEL
Dorsey & Whitney LLP
50 South Sixth Street, Suite 1500
Minneapolis, MN 55402
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
Audit Fees (a) | Audit Related Fees (b) | Tax Fees (c) | Other Fees (d) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fiscal year ended March 31, 2006 | 17,300 | 0 | 3,860 | 0 | ||||||||||
Fiscal year ended March 31, 2005 | 16,900 | 0 | 3,750 | 1,786 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
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.
SIT MONEY MARKET FUND, INC.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company 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 (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date May 31, 2006
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
Audit Fees (a) | Audit Related Fees (b) | Tax Fees (c) | Other Fees (d) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fiscal year ended March 31, 2006 | 15,800 | 0 | 3,860 | 0 | ||||||||||
Fiscal year ended March 31, 2005 | 15,400 | 0 | 3,750 | 1,786 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
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.
SIT U.S. GOVERNMENT SECURITIES FUND, INC.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company 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 (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date May 31, 2006
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
2006 | 2005 | |||||||||||||||||||||||||
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Audit Fees | Audit Related | Tax Fees | Other Fees | Audit Fees | Audit Related | Tax Fees | Other Fees | |||||||||||||||||||
Fiscal year ended March 31 | ||||||||||||||||||||||||||
Sit Mutual Funds II, Inc. | ||||||||||||||||||||||||||
Sit Tax-Free Income Fund (series A) | 21,600 | 0 | 3,860 | 0 | 21,000 | 0 | 3,750 | 1,786 | ||||||||||||||||||
Sit Minnesota Tax-Free Income Fund (series B) | 18,000 | 0 | 3,860 | 0 | 17,400 | 0 | 3,750 | 1,786 | ||||||||||||||||||
Sit Bond Fund (series C) | 0 | 0 | 0 | 0 | 14,500 | 0 | 3,750 | 1,786 | ||||||||||||||||||
Total Mutual Funds II, Inc. | 39,600 | 0 | 7,720 | 0 | 52,900 | 0 | 11,250 | 5,357 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
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.
SIT MUTUAL FUNDS II, INC.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company 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 (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date May 31, 2006
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
Audit Fees (a) | Audit Related Fees (b) | Tax Fees (c) | Other Fees (d) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fiscal year ended March 31, 2006 | 15,800 | 0 | 3,860 | 0 | ||||||||||
Fiscal year ended March 31, 2005 | 15,400 | 0 | 3,750 | 1,786 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000.00 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
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.
SIT MUTUAL FUNDS TRUST
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company 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 (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date May 31, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date May 31, 2006