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, 2008 |
Date of reporting period: | March 31, 2008 |
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, 2008 |
Date of reporting period: | March 31, 2008 |
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, 2008 |
Date of reporting period: | March 31, 2008 |
Item 1: Reports to Stockholders
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Sit Mutual Funds
Money Market Fund
U.S. Government Securities Fund
Tax-Free Income Fund
Minnesota 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 | |
| One Year Ended March 31, 2008 | |
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Dear fellow shareholders:
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With best wishes, |
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Eugene C. Sit, CFA |
Chairman and Co-Global Chief Investment Officer |
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| Sit Mutual Funds |
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| One Year Ended March 31, 2008 |
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SIT FIXED-INCOME FUNDS |
| Three |
| Six |
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U.S. Government Securities SNGVX |
| 3.05 |
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| 5.68 |
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Lehman Inter. Govt. Bond Index |
| 4.11 |
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| 7.61 |
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Tax-Free Income(1) SNTIX |
| -1.19 |
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| -1.80 |
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Lehman 5-Year Municipal Bond Index |
| 1.93 |
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| 3.88 |
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Minnesota Tax-Free Income SMTFX |
| -0.44 |
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| -0.57 |
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Lehman 5-Year Municipal Bond Index |
| 1.93 |
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| 3.88 |
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SIT MONEY MARKET FUND |
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Money Market Fund(2) SNIXX |
| 0.86 |
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| 1.98 |
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3-Month Treasury Bill |
| 0.52 |
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| 1.41 |
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*3- and 6-month returns not annualized.
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| TOTAL RETURN |
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| 1998 |
| 1999 |
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U.S. Government Securities SNGVX |
| 6.52 | % |
| 1.37 | % |
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Lehman Interm. Govt. Bond Index |
| 8.49 |
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| 0.49 |
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Tax-Free Income SNTIX |
| 6.29 |
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| -4.01 |
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Lehman 5-Year Municipal Bond Index |
| 5.84 |
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| 0.74 |
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Minnesota Tax-Free Income SMTFX |
| 6.14 |
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| -3.82 |
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Lehman 5-Year Municipal Bond Index |
| 5.84 |
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| 0.74 |
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Money Market Fund(1) SNIXX |
| 5.17 |
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| 4.79 |
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3-Month Treasury Bill |
| 5.01 |
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| 4.88 |
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(1) | Pursuant to a Plan of Reorganization on 4/23/07, the Tax-Free Income Fund acquired all of the assets of Florida Tax-Free Income Fund in exchange for shares of common stock of the Tax-Free Income Fund. |
(2) | Converted from Sit Investment Reserve Fund to Sit Money Market Fund on 11/1/93 |
(3) | Based on the last 12 monthly distributions of net investment income and average NAV as of 3/31/08. |
(4) | For individuals in the 25%, 28%, 33% and 35% federal tax brackets, the federal tax equivalent yields are 6.24%, 6.50%, 6.99% and 7.20%, respectively. (Income subject to state tax, if any.) |
(5) | For Minnesota residents in the 25%, 28%, 33% and 35% federal tax brackets, the double exempt tax equivalent yields are 6.74%, 7.02%, 7.55% and 7.78%, respectively. (Assumes the maximum Minnesota tax bracket of 7.85%.) |
(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, 2008 |
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| One |
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| Five |
| Ten |
| Since |
| Inception |
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| 8.37 |
| 5.52 |
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| 4.12 |
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| 5.09 |
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| 6.70 |
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| 6/2/87 |
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| 11.22 |
| 6.28 |
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| 4.34 |
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| 5.82 |
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| 6.97 |
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| -1.72 |
| 1.84 |
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| 2.39 |
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| 3.28 |
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| 5.45 |
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| 9/29/88 |
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| 6.19 |
| 4.19 |
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| 3.42 |
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| 4.65 |
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| 5.80 |
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| -0.25 |
| 3.10 |
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| 3.39 |
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| 3.96 |
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| 4.79 |
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| 12/1/93 |
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| 6.19 |
| 4.19 |
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| 3.42 |
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| 4.65 |
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| 4.87 |
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| 4.43 |
| 4.17 |
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| 2.86 |
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| 3.40 |
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| 3.84 |
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| 11/1/93 |
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| 3.77 |
| 4.21 |
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| 3.08 |
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| 3.55 |
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| 4.03 |
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AS OF 3/31/08 |
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30-Day |
| Distribution |
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4.19 | % |
| 4.70 | % |
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4.68 | (4) |
| 4.19 |
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4.66 | (5) |
| 4.23 |
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7-Day |
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2.85 | % |
| 2.89 | % |
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TOTAL RETURN BY CALENDAR YEAR |
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2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
| YTD 2008 |
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9.15 | % |
| 8.56 | % |
| 5.79 | % |
| 1.19 | % |
| 3.35 | % |
| 2.49 | % |
| 4.13 | % |
| 6.92 | % |
| 3.05 | % |
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10.47 |
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| 8.42 |
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| 9.64 |
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| 2.29 |
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| 2.33 |
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| 1.68 |
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| 3.84 |
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| 8.47 |
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| 4.11 |
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8.32 |
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| 5.84 |
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| 5.69 |
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| 2.87 |
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| 3.96 |
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| 3.30 |
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| 3.54 |
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| 0.26 |
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| -1.19 |
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7.72 |
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| 6.21 |
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| 9.27 |
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| 4.13 |
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| 2.72 |
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| 0.95 |
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| 3.34 |
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| 5.15 |
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| 1.93 |
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8.09 |
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| 5.85 |
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| 7.06 |
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| 4.42 |
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| 3.68 |
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| 4.44 |
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| 4.92 |
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| 1.04 |
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| -0.44 |
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7.72 |
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| 6.21 |
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| 9.27 |
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| 4.13 |
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| 2.72 |
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| 0.95 |
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| 3.34 |
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| 5.15 |
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| 1.93 |
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6.03 |
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| 3.67 |
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| 1.25 |
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| 0.65 |
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| 0.88 |
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| 2.77 |
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| 4.59 |
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| 4.79 |
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| 0.86 |
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6.16 |
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| 3.50 |
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| 1.67 |
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| 1.03 |
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| 1.41 |
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| 3.26 |
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| 5.00 |
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| 4.56 |
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| 0.52 |
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| Sit Mutual Funds |
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| Average Annual Total Returns for Periods Ended December 31, 2007 |
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Sit U.S. Government Securities Fund |
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| 1 Year |
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| 5 Years |
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| 10 Years | |||
Return Before Taxes |
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| 6.9 | % |
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| 3.6 | % |
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| 4.9 | % |
Return After Taxes on Distributions |
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| 5.1 | % |
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| 2.2 | % |
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| 3.1 | % |
Return After Taxes on Distributions and Sale of Fund Shares |
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| 4.8 | % |
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| 2.3 | % |
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| 3.2 | % |
Lehman Intermediate Government Bond Index |
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| 8.5 | % |
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| 3.7 | % |
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| 5.6 | % |
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Sit Tax-Free Income Fund |
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| 1 Year |
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| 5 Years |
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| 10 Years | |||
Return Before Taxes |
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| 0.3 | % |
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| 2.8 | % |
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| 3.6 | % |
Return After Taxes on Distributions |
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| 0.3 | % |
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| 2.8 | % |
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| 3.5 | % |
Return After Taxes on Distributions and Sale of Fund Shares |
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| 0.9 | % |
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| 3.0 | % |
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| 3.7 | % |
Lehman 5-Year Municipal Bond Index |
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| 5.2 | % |
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| 3.3 | % |
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| 4.6 | % |
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Sit Minnesota Tax-Free Income Fund |
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| 1 Year |
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| 5 Years |
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| 10 Years | |||
Return Before Taxes |
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| 1.0 | % |
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| 3.7 | % |
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| 4.1 | % |
Return After Taxes on Distributions |
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| 1.0 | % |
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| 3.7 | % |
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| 4.1 | % |
Return After Taxes on Distributions and Sale of Fund Shares |
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| 1.5 | % |
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| 3.8 | % |
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| 4.2 | % |
Lehman 5-Year Municipal Bond Index |
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| 5.2 | % |
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| 3.3 | % |
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| 4.6 | % |
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This page has been left blank intentionally.
7
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| One Year Ended March 31, 2008 |
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| Michael C. Brilley, Senior Portfolio Manager |
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The Federal Reserve reduced its Federal Funds rate target by 3.00% over the last 12 months to 2.25%, pushing short term interest rates down. The actions from the Fed were done in response to increasing investor concerns regarding housing market weakness combined with weakness in the overall economy that caused a number of financial markets to seize during the third quarter of 2007 and resulted in continued ongoing market disruption. Short-term yields declined the most in conjunction with the Fed action, and long term interest rates declined as well, as market participants reduced their expectations for inflation in conjunction with the decline in economic growth. With housing prices continuing to decline and the number of mortgages currently in default at a record level, we expect the Fed action to improve conditions in the housing market over time as adjustable rate mortgages reset at attractive levels. We believe that this will serve as a catalyst to reduce overall market disruptions, returning bond markets to normalcy over time. We expect the Federal Reserve to keep short term interest rates low in the near term, to insure that interest payments remain at levels that borrowers can afford.
The portfolio’s average maturity was extended during the 3rd quarter of 2007 after it had become apparent that the Federal Reserve was willing to risk higher levels of inflation to restore economic growth, to a level of 80 days as of March 31, 2008. We expect the average maturity to remain near the long end of the allowable maximum of 90 days in the near term, to allow the Fund to lock in higher yields in the event that the Federal Reserve elects to reduce interest rates even further. The Fund has no direct exposure to any of the types of securities that have recently experienced marketplace disruption, including Auction Rate Preferred Securities, Structured Investment Vehicles, or sub-prime mortgage securities, and continues to invest only in securities that fall in the top tier in terms of credit quality.
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INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Fund is to achieve maximum current income to the extent consistent with the preservation of capital and maintenance of liquidity. The Fund pursues this objective by investing in short-term debt instruments which mature in 397 days or less and by maintaining a dollar-weighted portfolio maturity of 90 days or less.
An investment in the Fund is neither insured nor guaranteed by the U.S. Government and there can be no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share.
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PORTFOLIO SUMMARY |
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Net Asset Value 3/31/08: |
| $ | 1.00 Per Share |
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3/31/07: |
| $ | 1.00 Per Share |
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Total Net Assets: |
| $ | 71.6 Million |
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PORTFOLIO STRUCTURE |
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AVERAGE ANNUAL TOTAL RETURNS* |
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| Sit Money |
| 3-Month |
| Lipper | ||||||
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3 Month** |
| 0.86 | % |
| 0.52 | % |
| 0.86 | % | ||
6 Month** |
| 1.98 |
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| 1.41 |
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| N/A |
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1 Year |
| 4.43 |
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| 3.77 |
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| 4.44 |
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5 Years |
| 2.86 |
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| 3.08 |
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| 2.79 |
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10 Years |
| 3.40 |
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| 3.55 |
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| 3.36 |
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Inception |
| 3.84 |
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| 4.03 |
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| 3.80 |
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| (11/1/93) |
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CUMULATIVE TOTAL RETURNS* | |||||||||||
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| 3-Month |
| Lipper | ||||||
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1 Year |
| 4.43 | % |
| 3.77 | % |
| 4.44 | % | ||
5 Year |
| 15.12 |
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| 16.38 |
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| 14.73 |
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10 Year |
| 39.69 |
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| 41.72 |
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| 39.23 |
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Inception |
| 72.27 |
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| 76.88 |
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| 71.19 |
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(11/1/93) |
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*As of 3/31/08 |
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| **Not annualized. |
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Performance is historical and assumes reinvestment of all dividends and capital gains. Money Market funds are neither insured nor guaranteed by the U.S. Government. There is no assurance that a fund will maintain a $1 share value. Yield fluctuates. Past performance is not a guarantee of future results. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the 3-Month U.S. Treasury Bill. The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds.
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GROWTH OF $10,000 |
The sum of $10,000 invested at inception (11/1/93) and held until 3/31/08 would have grown to $17,227 in the Fund or $17,688 in the 3-Month U.S. Treasury Bill assuming reinvestment of all dividends and capital gains.
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SIT MONEY MARKET MATURITY RANGES |
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| Sit Money Market Fund |
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| March 31, 2008 |
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| Portfolio of Investments |
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Quantity ($) Name of Issuer |
| Market Value ($)(1) |
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Commercial Paper (69.7%) (2) |
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Banking (4.3%) |
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| Bank of America Corp: |
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500,000 |
| 2.60%, 4/3/08 |
| 499,928 |
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2,600,000 |
| 3.05%, 4/7/08 |
| 2,598,678 |
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|
|
| |
|
|
|
| 3,098,606 |
|
|
|
|
|
| |
|
|
|
|
|
|
Captive Auto Finance (2.8%) |
|
|
| ||
2,000,000 |
| Toyota Motor Credit Corp., |
|
|
|
|
| 4.70%, 4/30/08 |
| 1,992,428 |
|
|
|
|
|
| |
|
|
|
|
|
|
Captive Equipment Finance (3.5%) |
|
|
| ||
1,000,000 |
| IBM Corp., |
|
|
|
|
| 2.52%, 4/10/08 (5) |
| 999,370 |
|
|
|
|
|
| |
1,500,000 |
| Pitney Bowes Inc., |
|
|
|
|
| 2.20%, 4/7/08 (5) |
| 1,499,450 |
|
|
|
|
|
| |
|
|
|
| 2,498,820 |
|
|
|
|
|
| |
Consumer Durables (4.9%) |
|
|
| ||
|
| American Honda Finance: |
|
|
|
2,000,000 |
| 2.83%, 4/2/08 |
| 1,999,843 |
|
743,000 |
| 2.86%, 4/2/08 |
| 742,941 |
|
750,000 |
| 2.77%, 4/4/08 |
| 749,827 |
|
|
|
|
|
| |
|
|
|
| 3,492,611 |
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer Loan Finance (8.2%) |
|
|
| ||
|
| American Express Credit Corp., |
|
|
|
1,000,000 |
| 2.70%, 8/8/08 |
| 990,325 |
|
717,000 |
| 2.68%, 8/8/08 |
| 710,114 |
|
1,800,000 |
| 2.70%, 11/28/08 |
| 1,767,465 |
|
|
| American General Financial Corp.: |
|
|
|
1,000,000 |
| 3.18%, 4/4/08 |
| 999,735 |
|
400,000 |
| 2.55%, 8/25/08 |
| 395,863 |
|
1,000,000 |
| 2.59%, 9/19/08 |
| 987,697 |
|
|
|
|
|
| |
|
|
|
| 5,851,199 |
|
|
|
|
|
| |
Consumer Non-Durables (14.2%) |
|
|
| ||
|
| Archers Daniels Midland: |
|
|
|
250,000 |
| 3.02%, 5/23/08 |
| 248,909 |
|
500,000 |
| 2.70%, 6/24/08 |
| 496,850 |
|
3,000,000 |
| 2.80%, 7/21/08 |
| 2,974,100 |
|
3,000,000 |
| Coca Cola Company, |
|
|
|
|
| 2.63%, 5/12/08 (5) |
| 2,991,014 |
|
500,000 |
| Hershey Co., |
|
|
|
|
| 2.64%, 4/16/08 (5) |
| 499,450 |
|
3,000,000 |
| Procter & Gamble Co., |
|
|
|
|
| 2.65%, 4/11/08 (5) |
| 2,997,792 |
|
|
|
|
|
| |
|
|
|
| 10,208,115 |
|
|
|
|
|
| |
|
|
|
|
|
|
Diversified Finance (7.6%) |
|
|
| ||
2,000,000 |
| GE Capital Corp., |
|
|
|
|
| 4.70%, 4/17/08 |
| 1,995,822 |
|
|
|
|
|
|
|
Quantity ($) Name of Issuer |
| Market Value ($)(1) |
| ||
| |||||
|
| GE Capital Services: |
|
|
|
2,500,000 |
| 4.87%, 5/8/08 |
| 2,487,487 |
|
1,000,000 |
| 2.61%, 8/7/08 |
| 990,720 |
|
|
|
|
|
| |
|
|
|
| 5,474,029 |
|
|
|
|
|
| |
Energy (4.9%) |
|
|
| ||
|
| Chevron Corp.: |
|
|
|
1,500,000 |
| 2.15%, 4/8/08 |
| 1,499,373 |
|
1,000,000 |
| 2.15%, 4/9/08 |
| 999,522 |
|
1,000,000 |
| Chevron Funding Corp., |
|
|
|
|
| 2.60%, 4/24/08 |
| 998,339 |
|
|
|
|
|
| |
|
|
|
| 3,497,234 |
|
|
|
|
|
| |
Financial Services (4.9%) |
|
|
| ||
|
| UBS Finance Corp.: |
|
|
|
600,000 |
| 2.35%, 4/1/08 |
| 600,000 |
|
1,000,000 |
| 2.95%, 6/6/08 |
| 994,592 |
|
500,000 |
| 2.99%, 6/4/08 |
| 497,342 |
|
1,400,000 |
| 2.52%, 6/17/08 |
| 1,392,454 |
|
|
|
|
|
| |
|
|
|
| 3,484,388 |
|
|
|
|
|
| |
|
|
|
|
|
|
Health Technology (4.2%) |
|
|
| ||
3,000,000 |
| Pfizer, Inc., |
|
|
|
|
| 4.41%, 5/13/08 (5) |
| 2,984,565 |
|
|
|
|
|
| |
|
|
|
|
|
|
Insurance (4.8%) |
|
|
| ||
|
| AIG Funding, Inc.: |
|
|
|
436,000 |
| 2.70%, 4/10/08 |
| 435,706 |
|
1,400,000 |
| 2.65%, 4/18/08 |
| 1,398,248 |
|
1,000,000 |
| 2.63%, 6/24/08 |
| 993,863 |
|
622,000 |
| 2.52%, 7/25/08 |
| 616,993 |
|
|
|
|
|
| |
|
|
|
| 3,444,810 |
|
|
|
|
|
| |
Producer Manufacturing (1.0%) |
|
|
| ||
700,000 |
| General Electric Co., |
|
|
|
|
| 2.25%, 4/1/08 |
| 700,000 |
|
|
|
|
|
| |
|
|
|
|
|
|
Retail Trade (4.4%) |
|
|
| ||
3,200,000 |
| Wal-Mart Stores Inc., |
|
|
|
|
| 2.75%, 4/29/08 (5) |
| 3,193,155 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial Paper |
| 49,919,960 |
| ||
|
|
|
|
| |
(cost: $49,919,960) |
|
|
| ||
|
|
|
|
|
|
Corporate Bonds (14.1%) (2) |
|
|
| ||
2,250,000 |
| American Express Credit Corp.: |
|
|
|
|
| 3.00%, 5/16/08 |
| 2,244,655 |
|
1,000,000 |
| American General Financial Corp., |
|
|
|
|
| 2.75%, 6/15/08 |
| 995,825 |
|
381,000 |
| Bank of America Corp, |
|
|
|
|
| 5.88%, 2/15/09 |
| 390,024 |
|
10
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) Name of Issuer |
| Market Value ($)(1) | |||
|
|
|
|
|
|
|
| Caterpillar Financial Services Corp: |
|
| |
1,000,000 |
| 3.70%, 8/15/08 |
| 996,169 |
|
1,000,000 |
| 3.45%, 1/15/09 |
| 997,017 |
|
|
| GE Capital Corp: |
|
|
|
500,000 |
| 8.63%, 6/15/08 |
| 503,875 |
|
1,000,000 |
| 3.60%, 10/15/08 |
| 995,444 |
|
1,500,000 |
| Toyota Motor Credit Corp., |
|
|
|
|
| 5.50%, 12/15/08 |
| 1,521,966 |
|
1,465,000 |
| Wells Fargo and Co., |
|
|
|
|
| 4.00%, 8/15/08 |
| 1,461,460 |
|
|
|
|
|
| |
|
|
|
| 10,106,435 |
|
|
|
|
|
| |
(cost: $10,106,435) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Federal Agency Issues (16.3%) (2) |
|
|
| ||
1,155,000 |
| Federal Farm Credit Bank, |
|
|
|
|
| 1.50%, 4/3/08 |
| 1,154,904 |
|
|
| Federal Home Loan Mortgage Corp: |
|
| |
515,000 |
| 4.25%, 5/23/08 |
| 516,435 |
|
1,500,000 |
| 2.04%, 5/27/08 |
| 1,495,240 |
|
|
| Federal Home Loan Bank: |
|
|
|
1,000,000 |
| 2.02%, 4/2/08 |
| 999,944 |
|
500,000 |
| 2.12%, 4/8/08 |
| 499,794 |
|
3,000,000 |
| 4.15%, 1/7/09 |
| 2,999,987 |
|
2,230,000 |
| 4.10%, 1/8/09 |
| 2,229,998 |
|
|
| Federal National Mortgage Association: |
| ||
1,200,000 |
| 2.06%, 4/30/08 |
| 1,198,009 |
|
569,000 |
| 5.00%, 7/25/08 |
| 573,953 |
|
|
|
|
|
| |
|
|
|
| 11,668,264 |
|
|
|
|
|
| |
(cost: $11,668,264) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $71,694,659) (6) |
| $ 71,694,659 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 58. 11
|
|
|
|
| |
| One Year Ended March 31, 2008 |
| |
| Senior Portfolio Managers, Michael C. Brilley and Bryce A. Doty, CFA |
| Portfolio Manager, Mark H. Book, CFA |
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
|
|
Net Asset Value 3/31/08: |
| $ | 10.92 Per Share |
|
3/31/07: |
| $ | 10.56 Per Share |
|
Total Net Assets: |
| $ | 254.7 Million |
|
30-day SEC Yield: |
| 4.19% |
| |
12-Month Distribution Rate: |
| 4.70% |
| |
Average Maturity: |
| 19.2 Years |
| |
Effective Duration: |
| 2.4 Years(1) |
| |
|
|
|
|
|
(1) See next page |
|
|
|
|
|
PORTFOLIO STRUCTURE |
Portfolio Structure By Sector
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit |
| Lehman |
| Lipper |
|
| |||
| 3 Month** |
| 3.05 | % |
| 4.11 | % |
| 2.63 | % |
|
|
| 6 Month** |
| 5.68 |
|
| 7.61 |
|
| n/a |
|
|
|
| 1 Year |
| 8.37 |
|
| 11.22 |
|
| 7.75 |
|
|
|
| 5 Years |
| 4.12 |
|
| 4.34 |
|
| 3.84 |
|
|
|
| 10 Years |
| 5.09 |
|
| 5.82 |
|
| 5.17 |
|
|
|
| Inception |
| 6.70 |
|
| 6.97 |
|
| 6.43 |
|
|
|
| (6/2/87) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
CUMULATIVE TOTAL RETURNS* |
| |||||||||||
|
|
|
|
|
|
|
|
|
| |||
|
|
| Sit |
| Lehman |
| Lipper |
|
| |||
| 1 Year |
| 8.37 | % |
| 11.22 | % |
| 7.75 | % |
|
|
| 5 Year |
| 22.37 |
|
| 23.67 |
|
| 20.74 |
|
|
|
| 10 Year |
| 64.23 |
|
| 76.01 |
|
| 65.53 |
|
|
|
| Inception |
| 286.41 |
|
| 307.79 |
|
| 266.21 |
|
|
|
| (6/2/87) |
|
|
|
|
|
|
|
|
|
|
|
| *As of 3/31/08. |
|
| **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.
(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.
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (6/2/87) and held until 3/31/08 would have grown to $38,641 in the Fund or $40,779 in the Lehman Intermediate Government Bond Index assuming reinvestment of all dividends and capital gains.
|
ESTIMATED AVERAGE LIFE PROFILE |
|
The Adviser’s estimates of the dollar weighted average life of the portfolio’s securities, which may vary from their stated maturities. |
13
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
Mortgage Pass-Through Securities (48.9%) (2) |
Federal Home Loan Mortgage Corporation (13.1%): |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
40,092 |
| 5.50 | % |
| 8/1/17 |
| 41,044 | |||
208,804 |
| 6.38 | % |
| 12/1/26 |
| 216,798 | |||
74,719 |
| 6.38 | % |
| 8/1/27 |
| 78,077 | |||
106,725 |
| 6.38 | % |
| 12/1/27 |
| 111,520 | |||
698,758 |
| 6.50 | % |
| 8/1/29 |
| 725,484 | |||
3,550,658 |
| 6.50 | % |
| 11/1/35 |
| 3,686,463 | |||
275,405 |
| 7.38 | % |
| 12/17/24 |
| 294,763 | |||
425,896 |
| 7.50 | % |
| 1/1/31 |
| 451,000 | |||
866,921 |
| 7.50 | % |
| 7/1/31 |
| 918,510 | |||
6,482,869 |
| 7.50 | % |
| 10/1/31 |
| 7,049,870 | |||
5,175,280 |
| 7.50 | % |
| 4/1/32 |
| 5,483,251 | |||
1,780,686 |
| 7.50 | % |
| 12/1/32 |
| 1,886,652 | |||
2,080,537 |
| 7.50 | % |
| 12/1/34 |
| 2,181,313 | |||
480,091 |
| 7.50 | % |
| 6/1/35 |
| 520,670 | |||
64,823 |
| 7.95 | % |
| 10/1/25 |
| 69,840 | |||
71,223 |
| 7.95 | % |
| 10/1/25 |
| 77,259 | |||
49,786 |
| 7.95 | % |
| 11/1/25 |
| 54,005 | |||
20,235 |
| 8.00 | % |
| 5/1/17 |
| 21,574 | |||
60,786 |
| 8.00 | % |
| 1/1/21 |
| 65,203 | |||
347,876 |
| 8.00 | % |
| 12/1/23 |
| 372,458 | |||
215,508 |
| 8.00 | % |
| 9/15/24 |
| 234,384 | |||
21,676 |
| 8.00 | % |
| 12/1/26 |
| 23,655 | |||
140,590 |
| 8.00 | % |
| 6/1/30 |
| 153,646 | |||
1,331 |
| 8.25 | % |
| 12/1/08 |
| 1,344 | |||
45,098 |
| 8.25 | % |
| 12/1/17 |
| 48,902 | |||
3,923 |
| 8.50 | % |
| 1/1/17 |
| 4,279 | |||
2,785 |
| 8.50 | % |
| 2/1/17 |
| 3,028 | |||
25,817 |
| 8.50 | % |
| 3/1/17 |
| 28,159 | |||
70,507 |
| 8.50 | % |
| 4/1/17 |
| 76,183 | |||
72,361 |
| 8.50 | % |
| 5/1/17 |
| 78,925 | |||
23,325 |
| 8.50 | % |
| 5/1/17 |
| 25,441 | |||
57,658 |
| 8.50 | % |
| 10/1/19 |
| 63,439 | |||
37,665 |
| 8.50 | % |
| 7/1/21 |
| 41,441 | |||
329,022 |
| 8.50 | % |
| 12/1/29 |
| 357,135 | |||
249,427 |
| 8.50 | % |
| 2/1/31 |
| 270,740 | |||
13,304 |
| 8.75 | % |
| 1/1/17 |
| 14,142 | |||
2,386 |
| 9.00 | % |
| 5/1/09 |
| 2,417 | |||
1,266 |
| 9.00 | % |
| 6/1/09 |
| 1,282 | |||
3,297 |
| 9.00 | % |
| 7/1/09 |
| 3,340 | |||
7,814 |
| 9.00 | % |
| 12/1/09 |
| 7,917 | |||
80,570 |
| 9.00 | % |
| 11/1/15 |
| 93,625 | |||
94,954 |
| 9.00 | % |
| 5/1/16 |
| 110,339 | |||
34,200 |
| 9.00 | % |
| 10/1/16 |
| 36,944 | |||
13,286 |
| 9.00 | % |
| 1/1/17 |
| 14,452 | |||
16,761 |
| 9.00 | % |
| 2/1/17 |
| 17,317 | |||
20,178 |
| 9.00 | % |
| 6/1/17 |
| 22,003 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
14,357 |
| 9.00 | % |
| 7/1/21 |
| 15,959 | |||
16,968 |
| 9.00 | % |
| 10/1/21 |
| 18,139 | |||
227,149 |
| 9.00 | % |
| 11/1/25 |
| 252,745 | |||
2,344,494 |
| 9.00 | % |
| 5/1/31 |
| 2,605,958 | |||
166 |
| 9.25 | % |
| 7/1/08 |
| 169 | |||
918 |
| 9.25 | % |
| 8/1/08 |
| 934 | |||
4,119 |
| 9.25 | % |
| 7/1/10 |
| 4,213 | |||
3,451 |
| 9.25 | % |
| 3/1/11 |
| 3,494 | |||
21,607 |
| 9.25 | % |
| 6/1/16 |
| 23,896 | |||
17,737 |
| 9.25 | % |
| 3/1/17 |
| 19,617 | |||
110,987 |
| 9.25 | % |
| 2/1/18 |
| 118,994 | |||
1,763 |
| 9.25 | % |
| 1/1/19 |
| 1,825 | |||
58,692 |
| 9.25 | % |
| 3/1/19 |
| 63,463 | |||
52,561 |
| 9.25 | % |
| 3/1/19 |
| 54,878 | |||
1,978 |
| 9.50 | % |
| 10/1/08 |
| 2,014 | |||
14,279 |
| 9.50 | % |
| 2/1/10 |
| 14,496 | |||
6,846 |
| 9.50 | % |
| 5/1/10 |
| 7,216 | |||
1,930 |
| 9.50 | % |
| 6/1/10 |
| 1,959 | |||
2,399 |
| 9.50 | % |
| 1/1/11 |
| 2,580 | |||
10,638 |
| 9.50 | % |
| 6/1/16 |
| 11,831 | |||
4,695 |
| 9.50 | % |
| 7/1/16 |
| 5,221 | |||
26,993 |
| 9.50 | % |
| 10/1/16 |
| 30,018 | |||
3,230 |
| 9.50 | % |
| 6/1/17 |
| 3,601 | |||
43,829 |
| 9.50 | % |
| 4/1/18 |
| 48,980 | |||
513 |
| 9.50 | % |
| 10/1/18 |
| 572 | |||
215,616 |
| 9.50 | % |
| 6/17/19 |
| 237,663 | |||
908,532 |
| 9.50 | % |
| 12/17/21 |
| 1,006,021 | |||
3,862 |
| 9.75 | % |
| 12/1/08 |
| 3,939 | |||
1,011 |
| 9.75 | % |
| 12/1/08 |
| 1,031 | |||
4,058 |
| 9.75 | % |
| 11/1/09 |
| 4,140 | |||
3,917 |
| 9.75 | % |
| 6/1/11 |
| 3,995 | |||
89,087 |
| 9.75 | % |
| 12/1/16 |
| 98,190 | |||
38,203 |
| 9.75 | % |
| 6/1/17 |
| 44,968 | |||
132,900 |
| 9.75 | % |
| 12/1/17 |
| 153,428 | |||
12,556 |
| 10.00 | % |
| 11/1/10 |
| 12,817 | |||
16,739 |
| 10.00 | % |
| 11/1/11 |
| 17,439 | |||
160,036 |
| 10.00 | % |
| 9/1/20 |
| 190,532 | |||
864,463 |
| 10.00 | % |
| 3/15/25 |
| 1,017,698 | |||
3,740 |
| 10.25 | % |
| 6/1/10 |
| 3,940 | |||
29,114 |
| 10.25 | % |
| 2/1/17 |
| 30,674 | |||
27,830 |
| 10.29 | % |
| 9/1/16 |
| 30,264 | |||
47,208 |
| 10.50 | % |
| 10/1/13 |
| 53,989 | |||
21,900 |
| 10.50 | % |
| 5/1/14 |
| 23,110 | |||
23,314 |
| 10.50 | % |
| 9/1/15 |
| 27,407 | |||
9,206 |
| 10.50 | % |
| 1/1/19 |
| 11,105 | |||
237,119 |
| 10.50 | % |
| 6/1/19 |
| 280,515 | |||
4,199 |
| 11.00 | % |
| 12/1/11 |
| 4,729 | |||
17,940 |
| 11.00 | % |
| 6/1/15 |
| 20,793 | |||
6,573 |
| 11.00 | % |
| 2/1/16 |
| 7,419 |
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) | |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
| |||||
6,132 |
| 11.00 | % |
| 5/1/19 |
| 6,730 | ||||
4,891 |
| 11.00 | % |
| 7/1/19 |
| 5,650 | ||||
532,533 |
| 11.00 | % |
| 8/15/20 |
| 624,925 | ||||
3,064 |
| 11.25 | % |
| 10/1/09 |
| 3,250 | ||||
11,221 |
| 11.25 | % |
| 8/1/11 |
| 13,257 | ||||
15,853 |
| 13.00 | % |
| 5/1/17 |
| 19,264 | ||||
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
| 33,311,887 | |||||
|
|
|
|
|
|
|
|
|
| ||
Federal National Mortgage Association (24.4%): |
| ||||||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) | |
|
|
|
|
|
|
| |||||
124,136 |
| 3.66 | % |
| 8/1/33 |
| 126,197 | ||||
206,830 |
| 3.70 | % |
| 8/1/33 |
| 210,100 | ||||
75,528 |
| 5.76 | % |
| 3/1/33 |
| 77,210 | ||||
883,214 |
| 5.86 | % |
| 2/1/34 |
| 892,860 | ||||
22,593 |
| 6.24 | % |
| 3/1/19 |
| 23,506 | ||||
85,102 |
| 6.49 | % |
| 2/1/32 |
| 88,693 | ||||
70,975 |
| 6.49 | % |
| 4/1/32 |
| 73,970 | ||||
1,167,274 |
| 6.50 | % |
| 4/1/32 |
| 1,209,942 | ||||
42,813 |
| 6.91 | % |
| 11/1/26 |
| 45,700 | ||||
178,784 |
| 6.91 | % |
| 8/1/27 |
| 190,839 | ||||
308,489 |
| 6.95 | % |
| 8/1/21 |
| 314,765 | ||||
12,789 |
| 7.00 | % |
| 2/1/17 |
| 13,617 | ||||
866,179 |
| 7.00 | % |
| 6/1/17 |
| 904,228 | ||||
23,486 |
| 7.00 | % |
| 4/1/27 |
| 24,967 | ||||
1,582,313 |
| 7.00 | % |
| 11/1/29 |
| 1,684,837 | ||||
332,264 |
| 7.00 | % |
| 2/1/32 |
| 349,022 | ||||
311,855 |
| 7.00 | % |
| 6/1/32 |
| 334,502 | ||||
351,566 |
| 7.00 | % |
| 4/1/34 |
| 369,297 | ||||
1,022,566 |
| 7.45 | % |
| 6/1/16 |
| 1,112,095 | ||||
335,818 |
| 7.50 | % |
| 11/1/12 |
| 352,234 | ||||
689,890 |
| 7.50 | % |
| 6/1/22 |
| 743,939 | ||||
653,584 |
| 7.50 | % |
| 8/1/22 |
| 708,599 | ||||
1,003,119 |
| 7.50 | % |
| 12/1/22 |
| 1,045,616 | ||||
2,036,548 |
| 7.50 | % |
| 3/1/23 |
| 2,122,825 | ||||
46,494 |
| 7.50 | % |
| 9/1/27 |
| 50,248 | ||||
41,787 |
| 7.50 | % |
| 11/1/29 |
| 45,241 | ||||
129,622 |
| 7.50 | % |
| 8/1/30 |
| 140,338 | ||||
497,199 |
| 7.50 | % |
| 1/1/31 |
| 537,597 | ||||
63,455 |
| 7.50 | % |
| 6/1/31 |
| 66,901 | ||||
229,702 |
| 7.50 | % |
| 3/1/32 |
| 247,273 | ||||
2,090,113 |
| 7.50 | % |
| 7/1/32 |
| 2,211,225 | ||||
77,417 |
| 7.50 | % |
| 8/1/32 |
| 81,625 | ||||
581,698 |
| 7.50 | % |
| 9/1/32 |
| 629,785 | ||||
91,762 |
| 7.50 | % |
| 9/1/32 |
| 96,737 | ||||
1,764,837 |
| 7.50 | % |
| 1/1/33 |
| 1,867,101 | ||||
1,928,382 |
| 7.50 | % |
| 4/1/33 |
| 2,040,122 | ||||
167,972 |
| 7.50 | % |
| 12/1/34 |
| 177,705 | ||||
1,979,835 |
| 7.50 | % |
| 7/1/35 |
| 2,116,053 | ||||
257,786 |
| 7.62 | % |
| 12/1/16 |
| 279,660 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
| ||||
549,302 |
| 7.95 | % |
| 9/15/20 |
| 596,978 | |||
7,356 |
| 8.00 | % |
| 8/1/09 |
| 7,489 | |||
156,312 |
| 8.00 | % |
| 4/1/16 |
| 165,080 | |||
485,883 |
| 8.00 | % |
| 7/1/21 |
| 529,182 | |||
142,823 |
| 8.00 | % |
| 1/1/22 |
| 154,889 | |||
77,143 |
| 8.00 | % |
| 5/1/23 |
| 83,546 | |||
71,266 |
| 8.00 | % |
| 9/1/23 |
| 77,379 | |||
717,967 |
| 8.00 | % |
| 7/1/24 |
| 781,967 | |||
1,650,836 |
| 8.00 | % |
| 10/1/26 |
| 1,763,519 | |||
358,779 |
| 8.00 | % |
| 9/1/27 |
| 390,613 | |||
399,138 |
| 8.00 | % |
| 5/1/29 |
| 426,382 | |||
1,018,530 |
| 8.00 | % |
| 2/1/30 |
| 1,088,053 | |||
156,963 |
| 8.00 | % |
| 1/1/31 |
| 167,480 | |||
345,860 |
| 8.00 | % |
| 2/1/31 |
| 369,468 | |||
1,837,551 |
| 8.00 | % |
| 6/1/31 |
| 2,000,591 | |||
280,235 |
| 8.00 | % |
| 12/1/31 |
| 299,363 | |||
576,661 |
| 8.00 | % |
| 9/1/32 |
| 628,481 | |||
567,380 |
| 8.00 | % |
| 5/1/36 |
| 606,123 | |||
993,281 |
| 8.17 | % |
| 11/15/31 |
| 1,097,070 | |||
45,006 |
| 8.25 | % |
| 4/1/22 |
| 48,063 | |||
486,312 |
| 8.33 | % |
| 7/15/20 |
| 541,123 | |||
251,530 |
| 8.38 | % |
| 7/20/28 |
| 275,432 | |||
2,056,037 |
| 8.45 | % |
| 5/31/35 |
| 2,256,749 | |||
9,130 |
| 8.50 | % |
| 11/1/10 |
| 9,453 | |||
196,885 |
| 8.50 | % |
| 9/1/13 |
| 211,864 | |||
442,362 |
| 8.50 | % |
| 2/1/16 |
| 506,315 | |||
18,594 |
| 8.50 | % |
| 9/1/17 |
| 19,845 | |||
89,517 |
| 8.50 | % |
| 8/1/18 |
| 98,134 | |||
25,415 |
| 8.50 | % |
| 7/1/22 |
| 28,019 | |||
107,227 |
| 8.50 | % |
| 7/1/26 |
| 116,121 | |||
772,123 |
| 8.50 | % |
| 11/1/26 |
| 848,133 | |||
349,117 |
| 8.50 | % |
| 11/1/28 |
| 383,622 | |||
553,943 |
| 8.50 | % |
| 12/1/28 |
| 608,476 | |||
267,187 |
| 8.50 | % |
| 1/1/30 |
| 291,169 | |||
63,281 |
| 8.50 | % |
| 11/1/30 |
| 69,005 | |||
13,421 |
| 8.50 | % |
| 1/1/31 |
| 14,635 | |||
234,782 |
| 8.52 | % |
| 9/15/30 |
| 259,901 | |||
477,787 |
| 8.71 | % |
| 7/20/30 |
| 524,150 | |||
95,782 |
| 8.87 | % |
| 12/15/25 |
| 114,134 | |||
14,434 |
| 9.00 | % |
| 1/1/09 |
| 14,724 | |||
3,910 |
| 9.00 | % |
| 5/1/09 |
| 3,978 | |||
8,153 |
| 9.00 | % |
| 5/1/09 |
| 8,370 | |||
9,368 |
| 9.00 | % |
| 5/1/09 |
| 9,531 | |||
24,250 |
| 9.00 | % |
| 3/1/11 |
| 25,221 | |||
16,997 |
| 9.00 | % |
| 9/1/17 |
| 18,606 | |||
36,559 |
| 9.00 | % |
| 2/1/18 |
| 40,021 | |||
15,680 |
| 9.00 | % |
| 10/1/19 |
| 17,045 | |||
35,364 |
| 9.00 | % |
| 12/15/19 |
| 38,390 | |||
140,324 |
| 9.00 | % |
| 6/15/25 |
| 154,050 |
See accompanying notes to portfolios of investments on page 58. 15
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
669,410 |
| 9.00 | % | 6/1/30 |
|
| 741,328 |
|
644,336 |
| 9.00 | % | 7/1/30 |
|
| 710,870 |
|
29,056 |
| 9.00 | % | 7/1/31 |
|
| 32,269 |
|
5,502,030 |
| 9.00 | % | 3/1/32 |
|
| 6,075,531 |
|
6,687 |
| 9.25 | % | 10/1/09 |
|
| 6,818 |
|
7,382 |
| 9.25 | % | 7/1/10 |
|
| 7,573 |
|
48,475 |
| 9.25 | % | 10/1/16 |
|
| 53,468 |
|
112,726 |
| 9.25 | % | 2/1/17 |
|
| 123,898 |
|
190,597 |
| 9.34 | % | 8/20/27 |
|
| 217,413 |
|
17,375 |
| 9.50 | % | 12/1/09 |
|
| 18,129 |
|
20,943 |
| 9.50 | % | 11/1/18 |
|
| 23,426 |
|
44,717 |
| 9.50 | % | 5/1/19 |
|
| 50,170 |
|
48,317 |
| 9.50 | % | 10/1/19 |
|
| 53,391 |
|
630,465 |
| 9.50 | % | 3/1/20 |
|
| 691,754 |
|
687,827 |
| 9.50 | % | 7/1/20 |
|
| 767,526 |
|
79,958 |
| 9.50 | % | 9/1/20 |
|
| 88,895 |
|
109,988 |
| 9.50 | % | 10/15/20 |
|
| 121,472 |
|
22,675 |
| 9.50 | % | 12/15/20 |
|
| 24,995 |
|
85,529 |
| 9.50 | % | 12/15/20 |
|
| 94,741 |
|
22,676 |
| 9.50 | % | 3/1/21 |
|
| 25,266 |
|
29,138 |
| 9.50 | % | 4/15/21 |
|
| 32,420 |
|
197,976 |
| 9.50 | % | 8/1/24 |
|
| 220,557 |
|
106,613 |
| 9.50 | % | 12/1/24 |
|
| 118,966 |
|
185,765 |
| 9.50 | % | 5/1/27 |
|
| 208,334 |
|
689,922 |
| 9.50 | % | 4/1/30 |
|
| 768,616 |
|
3,233,796 |
| 9.50 | % | 8/1/31 |
|
| 3,613,395 |
|
941,434 |
| 9.55 | % | 8/20/25 |
|
| 1,114,643 |
|
87,591 |
| 9.75 | % | 1/15/13 |
|
| 99,252 |
|
39,836 |
| 9.75 | % | 1/1/21 |
|
| 46,879 |
|
165,637 |
| 9.75 | % | 10/1/21 |
|
| 196,778 |
|
195,473 |
| 9.75 | % | 4/1/25 |
|
| 232,223 |
|
21,491 |
| 10.00 | % | 5/1/11 |
|
| 22,625 |
|
78,527 |
| 10.00 | % | 7/1/13 |
|
| 89,221 |
|
392,259 |
| 10.00 | % | 2/1/15 |
|
| 449,553 |
|
539,543 |
| 10.00 | % | 3/1/15 |
|
| 632,149 |
|
58,794 |
| 10.00 | % | 11/1/16 |
|
| 68,023 |
|
39,666 |
| 10.00 | % | 9/1/19 |
|
| 46,640 |
|
15,377 |
| 10.00 | % | 11/1/20 |
|
| 18,285 |
|
12,092 |
| 10.00 | % | 1/1/21 |
|
| 14,497 |
|
81,393 |
| 10.00 | % | 1/1/24 |
|
| 96,023 |
|
334,004 |
| 10.00 | % | 2/1/28 |
|
| 397,980 |
|
267,255 |
| 10.18 | % | 7/1/20 |
|
| 312,456 |
|
146,713 |
| 10.25 | % | 8/15/13 |
|
| 167,047 |
|
24,143 |
| 10.50 | % | 5/1/15 |
|
| 27,874 |
|
154,051 |
| 10.50 | % | 1/1/16 |
|
| 180,823 |
|
42,773 |
| 10.50 | % | 12/1/17 |
|
| 50,978 |
|
63,266 |
| 10.50 | % | 4/1/22 |
|
| 72,468 |
|
7,157 |
| 10.75 | % | 11/1/10 |
|
| 7,340 |
|
2,467 |
| 11.00 | % | 4/1/14 |
|
| 2,848 |
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
10,292 |
| 11.00 | % | 8/1/15 |
|
| 11,028 |
|
17,551 |
| 11.00 | % | 4/1/17 |
|
| 19,816 |
|
241,437 |
| 11.27 | % | 8/15/20 |
|
| 288,437 |
|
132,950 |
| 11.75 | % | 12/15/26 |
|
| 158,671 |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
| 62,110,881 |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Government National Mortgage Association (11.4%) (3): |
| |||||||
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||
363,878 |
| 5.50 | % | 9/15/25 |
|
| 377,112 |
|
131,796 |
| 5.76 | % | 3/20/33 |
|
| 135,355 |
|
80,932 |
| 5.76 | % | 3/20/33 |
|
| 83,118 |
|
108,276 |
| 5.76 | % | 3/20/33 |
|
| 111,200 |
|
345,745 |
| 5.76 | % | 5/20/33 |
|
| 355,083 |
|
113,380 |
| 5.76 | % | 5/20/33 |
|
| 116,442 |
|
91,638 |
| 5.76 | % | 6/20/33 |
|
| 94,113 |
|
105,806 |
| 5.76 | % | 6/20/33 |
|
| 108,663 |
|
65,098 |
| 6.00 | % | 9/15/18 |
|
| 67,742 |
|
81,136 |
| 6.05 | % | 3/20/33 |
|
| 83,522 |
|
169,341 |
| 6.25 | % | 5/15/13 |
|
| 175,562 |
|
333,259 |
| 6.25 | % | 12/15/23 |
|
| 347,617 |
|
225,422 |
| 6.25 | % | 1/15/24 |
|
| 235,713 |
|
168,176 |
| 6.38 | % | 12/15/27 |
|
| 175,400 |
|
290,191 |
| 6.38 | % | 4/15/28 |
|
| 302,470 |
|
148,470 |
| 6.49 | % | 11/20/31 |
|
| 155,210 |
|
47,383 |
| 6.49 | % | 12/20/31 |
|
| 49,534 |
|
170,950 |
| 6.49 | % | 4/20/32 |
|
| 178,475 |
|
73,289 |
| 6.49 | % | 6/20/32 |
|
| 76,516 |
|
86,769 |
| 6.49 | % | 12/20/32 |
|
| 90,589 |
|
38,009 |
| 6.57 | % | 9/20/32 |
|
| 40,068 |
|
64,998 |
| 6.57 | % | 1/20/33 |
|
| 68,508 |
|
82,653 |
| 6.57 | % | 3/20/33 |
|
| 87,116 |
|
71,156 |
| 6.75 | % | 9/15/15 |
|
| 75,682 |
|
296,348 |
| 6.75 | % | 8/15/28 |
|
| 314,955 |
|
119,412 |
| 6.75 | % | 6/15/29 |
|
| 126,845 |
|
405,213 |
| 6.91 | % | 7/20/26 |
|
| 432,482 |
|
28,660 |
| 7.00 | % | 9/20/16 |
|
| 30,483 |
|
642,340 |
| 7.00 | % | 7/15/29 |
|
| 686,915 |
|
5,490,320 |
| 7.00 | % | 9/15/31 |
|
| 5,781,884 |
|
772,243 |
| 7.00 | % | 8/20/36 |
|
| 812,288 |
|
698,741 |
| 7.00 | % | 9/20/36 |
|
| 734,974 |
|
16,309 |
| 7.05 | % | 2/15/23 |
|
| 17,393 |
|
130,030 |
| 7.05 | % | 9/20/26 |
|
| 138,250 |
|
78,099 |
| 7.05 | % | 11/20/26 |
|
| 83,036 |
|
63,286 |
| 7.05 | % | 1/20/27 |
|
| 67,270 |
|
97,926 |
| 7.05 | % | 4/20/27 |
|
| 104,091 |
|
42,796 |
| 7.15 | % | 12/20/26 |
|
| 45,614 |
|
74,163 |
| 7.15 | % | 3/20/27 |
|
| 79,028 |
|
240,188 |
| 7.15 | % | 4/20/27 |
|
| 255,945 |
|
6,045 |
| 7.25 | % | 8/15/10 |
|
| 6,232 |
|
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
127,910 |
| 7.25 | % | 5/15/29 |
|
| 137,027 |
|
61,420 |
| 7.27 | % | 7/20/22 |
|
| 65,568 |
|
60,022 |
| 7.38 | % | 1/15/29 |
|
| 64,492 |
|
55,254 |
| 7.50 | % | 5/15/16 |
|
| 59,720 |
|
196,815 |
| 7.50 | % | 6/15/36 |
|
| 209,000 |
|
1,605,306 |
| 7.50 | % | 1/20/38 |
|
| 1,698,041 |
|
66,794 |
| 7.55 | % | 7/20/22 |
|
| 72,051 |
|
71,521 |
| 7.55 | % | 10/20/22 |
|
| 77,150 |
|
93,164 |
| 7.63 | % | 10/15/29 |
|
| 101,231 |
|
63,947 |
| 7.65 | % | 10/20/21 |
|
| 69,092 |
|
82,431 |
| 7.65 | % | 7/20/22 |
|
| 89,130 |
|
171,542 |
| 7.75 | % | 6/15/20 |
|
| 186,376 |
|
179,531 |
| 7.75 | % | 7/15/20 |
|
| 195,055 |
|
134,368 |
| 7.75 | % | 8/15/20 |
|
| 145,987 |
|
140,802 |
| 7.75 | % | 8/15/20 |
|
| 152,977 |
|
65,536 |
| 7.75 | % | 11/15/20 |
|
| 71,203 |
|
480,277 |
| 7.75 | % | 10/15/22 |
|
| 527,050 |
|
42,361 |
| 7.90 | % | 1/20/21 |
|
| 46,036 |
|
27,653 |
| 7.90 | % | 1/20/21 |
|
| 30,052 |
|
90,708 |
| 7.95 | % | 2/15/20 |
|
| 99,003 |
|
41,430 |
| 7.95 | % | 5/20/25 |
|
| 45,204 |
|
117,111 |
| 7.95 | % | 7/20/25 |
|
| 127,780 |
|
47,420 |
| 7.95 | % | 8/20/25 |
|
| 51,740 |
|
160,587 |
| 7.95 | % | 9/20/25 |
|
| 175,217 |
|
25,771 |
| 7.95 | % | 10/20/25 |
|
| 28,119 |
|
36,757 |
| 7.95 | % | 10/20/25 |
|
| 40,106 |
|
31,180 |
| 7.95 | % | 10/20/25 |
|
| 34,021 |
|
70,175 |
| 7.95 | % | 1/20/26 |
|
| 76,596 |
|
75,449 |
| 7.95 | % | 1/20/26 |
|
| 82,353 |
|
86,822 |
| 7.95 | % | 4/20/26 |
|
| 94,767 |
|
21,369 |
| 7.95 | % | 6/20/26 |
|
| 23,324 |
|
26,548 |
| 7.95 | % | 9/20/26 |
|
| 28,977 |
|
36,778 |
| 7.95 | % | 9/20/26 |
|
| 40,143 |
|
26,144 |
| 7.95 | % | 11/20/26 |
|
| 28,536 |
|
34,719 |
| 7.95 | % | 12/20/26 |
|
| 37,896 |
|
45,356 |
| 7.95 | % | 3/20/27 |
|
| 49,497 |
|
36,746 |
| 7.99 | % | 2/20/21 |
|
| 40,017 |
|
57,631 |
| 7.99 | % | 4/20/21 |
|
| 62,762 |
|
127,855 |
| 7.99 | % | 7/20/21 |
|
| 139,237 |
|
72,984 |
| 7.99 | % | 9/20/21 |
|
| 79,482 |
|
97,182 |
| 7.99 | % | 10/20/21 |
|
| 105,834 |
|
214,238 |
| 7.99 | % | 1/20/22 |
|
| 233,533 |
|
302,246 |
| 7.99 | % | 6/20/22 |
|
| 329,466 |
|
19,255 |
| 8.00 | % | 10/15/12 |
|
| 20,763 |
|
354,034 |
| 8.00 | % | 10/15/14 |
|
| 376,978 |
|
53,583 |
| 8.00 | % | 5/15/16 |
|
| 58,702 |
|
159,556 |
| 8.00 | % | 6/15/16 |
|
| 174,799 |
|
55,901 |
| 8.00 | % | 9/15/16 |
|
| 61,242 |
|
734,761 |
| 8.00 | % | 12/15/30 |
|
| 790,248 |
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||
|
|
|
|
|
|
|
| |
245,946 |
| 8.10 | % | 5/20/19 |
|
| 267,149 |
|
28,734 |
| 8.10 | % | 6/20/19 |
|
| 31,211 |
|
65,472 |
| 8.10 | % | 7/20/19 |
|
| 71,116 |
|
130,069 |
| 8.10 | % | 9/20/19 |
|
| 141,282 |
|
24,527 |
| 8.10 | % | 9/20/19 |
|
| 26,641 |
|
23,309 |
| 8.10 | % | 10/20/19 |
|
| 25,319 |
|
69,849 |
| 8.10 | % | 1/20/20 |
|
| 75,951 |
|
44,914 |
| 8.10 | % | 7/20/20 |
|
| 48,837 |
|
70,943 |
| 8.25 | % | 12/15/11 |
|
| 75,981 |
|
14,446 |
| 8.25 | % | 1/15/12 |
|
| 15,611 |
|
48,801 |
| 8.25 | % | 8/15/15 |
|
| 53,399 |
|
348,001 |
| 8.25 | % | 4/15/19 |
|
| 380,634 |
|
119,496 |
| 8.25 | % | 2/15/20 |
|
| 130,855 |
|
11,149 |
| 8.25 | % | 4/15/27 |
|
| 12,207 |
|
38,634 |
| 8.25 | % | 6/15/27 |
|
| 42,304 |
|
40,267 |
| 8.38 | % | 10/15/19 |
|
| 44,159 |
|
98,584 |
| 8.40 | % | 2/15/19 |
|
| 108,182 |
|
29,829 |
| 8.40 | % | 4/15/19 |
|
| 32,733 |
|
109,673 |
| 8.40 | % | 6/15/19 |
|
| 120,351 |
|
38,020 |
| 8.40 | % | 9/15/19 |
|
| 41,721 |
|
52,795 |
| 8.40 | % | 2/15/20 |
|
| 58,011 |
|
17,610 |
| 8.50 | % | 12/15/11 |
|
| 18,918 |
|
65,120 |
| 8.50 | % | 1/15/12 |
|
| 70,622 |
|
9,541 |
| 8.50 | % | 4/15/15 |
|
| 10,489 |
|
53,124 |
| 8.50 | % | 4/15/15 |
|
| 58,402 |
|
163,013 |
| 8.50 | % | 9/15/16 |
|
| 179,849 |
|
62,642 |
| 8.50 | % | 1/15/17 |
|
| 69,404 |
|
90,492 |
| 8.50 | % | 12/15/21 |
|
| 99,781 |
|
64,409 |
| 8.50 | % | 12/15/21 |
|
| 70,949 |
|
9,306 |
| 8.50 | % | 7/20/22 |
|
| 10,235 |
|
73,645 |
| 8.50 | % | 10/20/22 |
|
| 80,995 |
|
36,728 |
| 8.50 | % | 9/20/24 |
|
| 40,459 |
|
74,856 |
| 8.50 | % | 3/20/25 |
|
| 82,497 |
|
197,775 |
| 8.50 | % | 12/20/26 |
|
| 217,135 |
|
26,043 |
| 8.50 | % | 8/15/30 |
|
| 28,659 |
|
796,614 |
| 8.50 | % | 7/15/32 |
|
| 865,954 |
|
51,571 |
| 8.60 | % | 5/15/18 |
|
| 56,014 |
|
46,575 |
| 8.60 | % | 6/15/18 |
|
| 50,588 |
|
44,890 |
| 8.63 | % | 10/15/18 |
|
| 48,755 |
|
13,731 |
| 8.75 | % | 11/15/09 |
|
| 14,478 |
|
18,029 |
| 8.75 | % | 6/15/11 |
|
| 19,457 |
|
116,967 |
| 8.75 | % | 11/15/11 |
|
| 126,229 |
|
21,475 |
| 8.75 | % | 12/15/11 |
|
| 23,175 |
|
94,331 |
| 8.75 | % | 10/15/30 |
|
| 103,374 |
|
1,313 |
| 9.00 | % | 9/15/08 |
|
| 1,335 |
|
651 |
| 9.00 | % | 9/15/08 |
|
| 663 |
|
1,152 |
| 9.00 | % | 11/15/08 |
|
| 1,171 |
|
3,958 |
| 9.00 | % | 12/15/08 |
|
| 4,025 |
|
685 |
| 9.00 | % | 2/15/09 |
|
| 711 |
|
See accompanying notes to portfolios of investments on page 58. 17
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,027 |
| 9.00 | % | 4/15/09 |
| 2,125 |
| 29,098 |
| 9.50 | % | 7/20/18 |
| 32,312 |
385 |
| 9.00 | % | 5/15/09 |
| 399 |
| 19,300 |
| 9.50 | % | 8/20/18 |
| 21,432 |
1,857 |
| 9.00 | % | 9/15/09 |
| 1,947 |
| 34,947 |
| 9.50 | % | 9/20/18 |
| 38,808 |
1,324 |
| 9.00 | % | 10/15/09 |
| 1,373 |
| 40,849 |
| 9.50 | % | 9/20/18 |
| 45,361 |
12,149 |
| 9.00 | % | 11/15/09 |
| 12,830 |
| 11,731 |
| 9.50 | % | 9/20/18 |
| 13,026 |
1,193 |
| 9.00 | % | 12/15/09 |
| 1,251 |
| 28,856 |
| 9.50 | % | 8/20/19 |
| 32,105 |
11,962 |
| 9.00 | % | 7/15/10 |
| 12,613 |
| 2,436 |
| 9.50 | % | 10/20/19 |
| 2,710 |
46,411 |
| 9.00 | % | 5/15/11 |
| 50,235 |
| 22,137 |
| 9.75 | % | 8/15/09 |
| 23,824 |
27,319 |
| 9.00 | % | 5/15/11 |
| 29,570 |
| 23,299 |
| 9.75 | % | 9/15/09 |
| 25,075 |
41,560 |
| 9.00 | % | 6/15/11 |
| 44,984 |
| 73,070 |
| 9.75 | % | 8/15/10 |
| 80,803 |
46,133 |
| 9.00 | % | 7/15/11 |
| 49,933 |
| 20,710 |
| 9.75 | % | 11/15/10 |
| 22,901 |
54,431 |
| 9.00 | % | 8/15/11 |
| 58,916 |
| 82,064 |
| 9.75 | % | 12/15/10 |
| 90,748 |
16,224 |
| 9.00 | % | 8/15/11 |
| 17,901 |
| 77,361 |
| 9.75 | % | 1/15/11 |
| 87,465 |
59,214 |
| 9.00 | % | 9/15/11 |
| 64,093 |
| 55,009 |
| 9.75 | % | 1/15/11 |
| 62,195 |
57,545 |
| 9.00 | % | 9/15/11 |
| 62,286 |
| 19,282 |
| 9.75 | % | 10/15/12 |
| 22,201 |
30,885 |
| 9.00 | % | 9/15/11 |
| 33,430 |
| 7,082 |
| 9.75 | % | 10/15/12 |
| 8,154 |
35,393 |
| 9.00 | % | 10/15/11 |
| 38,309 |
| 6,909 |
| 9.75 | % | 11/15/12 |
| 7,956 |
10,579 |
| 9.00 | % | 1/15/12 |
| 11,555 |
| 21,021 |
| 9.75 | % | 11/15/12 |
| 24,204 |
93,286 |
| 9.00 | % | 7/15/15 |
| 101,530 |
| 20,693 |
| 9.75 | % | 11/15/12 |
| 23,826 |
30,440 |
| 9.00 | % | 8/15/15 |
| 33,130 |
| 14,950 |
| 9.75 | % | 11/15/12 |
| 17,214 |
323,348 |
| 9.00 | % | 12/15/16 |
| 352,995 |
| 2,231 |
| 10.00 | % | 11/15/08 |
| 2,339 |
82,654 |
| 9.00 | % | 1/15/17 |
| 92,025 |
| 815 |
| 10.00 | % | 11/15/09 |
| 859 |
259,915 |
| 9.00 | % | 7/15/17 |
| 289,383 |
| 2,873 |
| 10.00 | % | 6/15/10 |
| 3,184 |
217,759 |
| 9.00 | % | 11/15/24 |
| 238,950 |
| 43,060 |
| 10.00 | % | 6/15/10 |
| 47,727 |
104,647 |
| 9.00 | % | 4/15/26 |
| 115,250 |
| 14,035 |
| 10.00 | % | 7/15/10 |
| 15,556 |
21,648 |
| 9.10 | % | 5/15/18 |
| 23,919 |
| 6,180 |
| 10.00 | % | 7/15/10 |
| 6,850 |
21,607 |
| 9.25 | % | 11/15/09 |
| 22,994 |
| 2,792 |
| 10.00 | % | 10/15/10 |
| 3,095 |
14,997 |
| 9.25 | % | 1/15/10 |
| 16,220 |
| 15,309 |
| 10.00 | % | 11/15/10 |
| 16,969 |
19,987 |
| 9.25 | % | 4/15/10 |
| 21,617 |
| 28,941 |
| 10.00 | % | 3/20/16 |
| 34,222 |
17,520 |
| 9.25 | % | 11/15/10 |
| 18,948 |
| 15,974 |
| 10.00 | % | 11/15/17 |
| 19,067 |
35,685 |
| 9.25 | % | 11/15/11 |
| 38,981 |
| 30,077 |
| 10.00 | % | 2/15/19 |
| 36,110 |
32,720 |
| 9.50 | % | 10/15/09 |
| 33,969 |
| 15,844 |
| 10.00 | % | 2/20/19 |
| 18,959 |
9,951 |
| 9.50 | % | 10/15/09 |
| 10,332 |
| 20,183 |
| 10.00 | % | 3/20/19 |
| 24,151 |
2,055 |
| 9.50 | % | 10/15/09 |
| 2,134 |
| 15,192 |
| 10.00 | % | 5/20/19 |
| 18,178 |
9,620 |
| 9.50 | % | 11/15/09 |
| 10,253 |
| 135,575 |
| 10.00 | % | 10/15/19 |
| 166,110 |
28,732 |
| 9.50 | % | 1/15/10 |
| 31,146 |
| 36,856 |
| 10.00 | % | 11/15/19 |
| 44,248 |
8,041 |
| 9.50 | % | 2/15/10 |
| 8,495 |
| 30,440 |
| 10.00 | % | 12/15/20 |
| 36,646 |
15,977 |
| 9.50 | % | 4/15/10 |
| 17,285 |
| 67,432 |
| 10.00 | % | 6/15/21 |
| 81,368 |
9,765 |
| 9.50 | % | 8/15/10 |
| 10,586 |
| 9,571 |
| 10.25 | % | 5/15/09 |
| 10,216 |
13,707 |
| 9.50 | % | 11/15/10 |
| 14,859 |
| 4,864 |
| 10.25 | % | 11/15/11 |
| 5,473 |
7,786 |
| 9.50 | % | 1/15/11 |
| 8,530 |
| 16,613 |
| 10.25 | % | 1/15/12 |
| 19,065 |
49,882 |
| 9.50 | % | 3/15/11 |
| 54,649 |
| 6,339 |
| 10.25 | % | 7/15/12 |
| 7,274 |
13,576 |
| 9.50 | % | 3/20/16 |
| 14,971 |
| 14,541 |
| 10.50 | % | 6/15/09 |
| 15,545 |
39,649 |
| 9.50 | % | 11/20/16 |
| 43,723 |
| 2,324 |
| 10.50 | % | 7/15/10 |
| 2,560 |
1,057 |
| 9.50 | % | 8/20/17 |
| 1,170 |
| 8,596 |
| 10.50 | % | 9/15/15 |
| 10,192 |
3,531 |
| 9.50 | % | 12/20/17 |
| 3,909 |
| 11,271 |
| 10.50 | % | 11/15/15 |
| 13,363 |
3,956 |
| 9.50 | % | 4/20/18 |
| 4,393 |
| 1,667 |
| 10.50 | % | 8/20/17 |
| 1,995 |
1,533 |
| 9.50 | % | 5/20/18 |
| 1,702 |
| 30,209 |
| 10.50 | % | 11/15/18 |
| 36,386 |
31,152 |
| 9.50 | % | 6/20/18 |
| 34,593 |
| 33,551 |
| 10.50 | % | 6/15/19 |
| 40,595 |
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
|
| Coupon |
|
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
187,610 |
|
| 10.50 | % |
| 2/15/20 |
|
| 225,547 |
|
157,429 |
|
| 10.50 | % |
| 8/15/21 |
|
| 193,466 |
|
1,810 |
|
| 10.75 | % |
| 1/15/10 |
|
| 1,998 |
|
902 |
|
| 10.75 | % |
| 7/15/11 |
|
| 1,021 |
|
10,273 |
|
| 11.25 | % |
| 6/15/10 |
|
| 11,395 |
|
18,869 |
|
| 11.25 | % |
| 9/15/10 |
|
| 20,930 |
|
2,269 |
|
| 11.25 | % |
| 9/15/10 |
|
| 2,517 |
|
13,306 |
|
| 11.25 | % |
| 3/15/11 |
|
| 15,155 |
|
4,147 |
|
| 11.25 | % |
| 3/15/11 |
|
| 4,724 |
|
29,149 |
|
| 11.25 | % |
| 4/15/11 |
|
| 33,199 |
|
6,432 |
|
| 11.25 | % |
| 5/15/11 |
|
| 7,326 |
|
22,494 |
|
| 11.25 | % |
| 7/15/11 |
|
| 25,620 |
|
4,730 |
|
| 11.25 | % |
| 7/15/11 |
|
| 5,388 |
|
5,539 |
|
| 11.25 | % |
| 10/15/11 |
|
| 6,309 |
|
64,318 |
|
| 11.50 | % |
| 8/15/18 |
|
| 74,068 |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| 29,215,728 |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Total mortgage pass-through securities |
|
|
| 124,638,496 |
| |||||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
Taxable Municipal Securities (0.1%) (2) |
|
|
| |||||||
186,000 |
|
| Bernalillo Multifamily Rev. Series |
| 198,713 |
| ||||
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
(cost: $186,000) |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury / Federal Agency Securities (19.1%) (2) | ||||||||||
1,250,000 |
|
| Tenn. Valley Auth. Strip, |
|
| 1,156,200 |
| |||
32,450,000 |
|
| U.S. Treas. Bond, 4.50%, 11/30/11 |
| 35,223,469 |
| ||||
|
|
| U.S. Treasury Notes: |
|
|
| ||||
275,000 |
|
| 4.50 | % | 11/15/10 |
|
| 294,895 |
| |
400,000 |
|
| 4.50 | % | 5/15/17 |
|
| 434,688 |
| |
800,000 |
|
| 4.88 | % | 8/15/16 |
|
| 896,125 |
| |
5,000,000 |
|
| 4.63 | % | 8/31/11 |
|
| 5,429,690 |
| |
|
|
| U.S. Treasury Strips, Zero Coupon: |
| ||||||
3,050,000 |
|
| 4.14% effective yield, 2/15/12 |
|
| 2,793,666 |
| |||
6,400,000 |
|
| 5.45% effective Yield, 5/15/30 |
|
| 2,370,682 |
| |||
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total U.S. Treasury / Federal Agency securities |
| 48,599,415 |
| |||||||
|
|
|
|
|
| |||||
(cost: $45,968,976) |
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (29.1%) (2) |
|
|
|
| ||||||
Federal Home Loan Mortgage Corp.: |
|
|
|
| ||||||
Par ($) |
|
| Coupon |
|
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||||
518,261 |
|
| 3.00 | % |
| 2/15/23 |
|
| 499,299 |
|
2,624,056 |
|
| 3.25 | % |
| 4/15/32 |
|
| 2,494,566 |
|
516,188 |
|
| 3.50 | % |
| 5/15/29 |
|
| 499,738 |
|
524,461 |
|
| 3.50 | % |
| 12/1/32 |
|
| 512,776 |
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
|
| Coupon |
|
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
576,804 |
|
| 4.00 | % |
| 11/15/14 |
|
| 579,590 |
|
2,578,747 |
|
| 4.00 | % |
| 5/31/25 |
|
| 2,445,337 |
|
262,231 |
|
| 4.00 | % |
| 12/15/32 |
|
| 254,285 |
|
512,484 |
|
| 4.00 | % |
| 3/15/34 |
|
| 501,001 |
|
846,163 |
|
| 4.50 | % |
| 5/15/32 |
|
| 849,364 |
|
500,000 |
|
| 5.50 | % |
| 7/15/31 |
|
| 515,628 |
|
5,000,000 |
|
| 5.50 | % |
| 3/15/32 |
|
| 5,104,592 |
|
1,000,000 |
|
| 5.50 | % |
| 9/15/32 |
|
| 1,024,485 |
|
132,173 |
|
| 6.50 | % |
| 2/15/30 |
|
| 139,023 |
|
655,679 |
|
| 6.95 | % |
| 3/15/28 |
|
| 692,479 |
|
1,967,341 |
|
| 7.00 | % |
| 8/15/29 |
|
| 2,069,497 |
|
505,385 |
|
| 7.00 | % |
| 7/15/31 |
|
| 535,089 |
|
415,072 |
|
| 7.50 | % |
| 6/15/17 |
|
| 445,906 |
|
130,511 |
|
| 7.50 | % |
| 3/15/23 |
|
| 140,378 |
|
215,621 |
|
| 7.50 | % |
| 9/15/30 |
|
| 231,232 |
|
14,842 |
|
| 7.75 | % |
| 3/18/25 |
|
| 15,900 |
|
197,035 |
|
| 8.00 | % |
| 11/25/22 |
|
| 209,429 |
|
72,739 |
|
| 8.00 | % |
| 3/15/23 |
|
| 78,987 |
|
106,583 |
|
| 8.00 | % |
| 4/25/24 |
|
| 117,966 |
|
379,354 |
|
| 8.00 | % |
| 1/15/30 |
|
| 397,593 |
|
145,936 |
|
| 8.50 | % |
| 6/15/25 |
|
| 156,415 |
|
24,252 |
|
| 9.15 | % |
| 10/15/20 |
|
| 26,035 |
|
1,133,994 |
|
| 9.50 | % |
| 2/15/20 |
|
| 1,212,330 |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| 21,748,920 |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
| |||
Federal National Mortgage Association: |
|
|
|
| ||||||
Par ($) |
|
| Coupon |
|
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
2,969,975 |
|
| 3.50 | % |
| 2/25/33 |
|
| 2,800,212 |
|
600,503 |
|
| 3.50 | % |
| 3/25/33 |
|
| 579,373 |
|
297,292 |
|
| 3.50 | % |
| 8/25/33 |
|
| 276,790 |
|
1,134,230 |
|
| 3.50 | % |
| 6/25/35 |
|
| 1,114,982 |
|
769,088 |
|
| 3.75 | % |
| 5/25/33 |
|
| 724,205 |
|
964,385 |
|
| 4.00 | % |
| 11/25/32 |
|
| 950,726 |
|
289,344 |
|
| 4.00 | % |
| 1/25/33 |
|
| 282,021 |
|
1,272,967 |
|
| 4.00 | % |
| 3/25/33 |
|
| 1,234,509 |
|
1,450,673 |
|
| 4.00 | % |
| 5/25/33 |
|
| 1,415,064 |
|
187,425 |
|
| 5.00 | % |
| 8/25/22 |
|
| 191,556 |
|
1,408,742 |
|
| 5.00 | % |
| 11/25/32 |
|
| 1,421,525 |
|
4,954,363 |
|
| 5.50 | % |
| 5/25/25 |
|
| 5,061,134 |
|
990,258 |
|
| 5.50 | % |
| 1/25/37 |
|
| 983,183 |
|
5,107,588 |
|
| 6.50 | % |
| 10/25/17 |
|
| 5,345,877 |
|
71,077 |
|
| 6.85 | % |
| 12/18/27 |
|
| 75,081 |
|
89,070 |
|
| 7.00 | % |
| 1/25/21 |
|
| 94,169 |
|
117,274 |
|
| 7.00 | % |
| 2/25/44 |
|
| 128,561 |
|
144,538 |
|
| 7.50 | % |
| 8/20/27 |
|
| 155,235 |
|
956,845 |
|
| 7.50 | % |
| 6/25/32 |
|
| 1,050,903 |
|
488,414 |
|
| 7.50 | % |
| 11/25/40 |
|
| 524,282 |
|
38,830 |
|
| 7.70 | % |
| 3/25/23 |
|
| 42,279 |
|
189,389 |
|
| 8.00 | % |
| 7/25/22 |
|
| 205,666 |
|
212,932 |
|
| 8.00 | % |
| 7/25/22 |
|
| 226,798 |
|
See accompanying notes to portfolios of investments on page 58. 19
|
|
|
|
| Sit U.S. Government Securities Fund |
| March 31, 2008 |
| |
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| ||
|
|
|
| ||||||
100,000 |
|
| 8.00% |
|
| 7/18/27 |
| 114,537 |
|
362,048 |
|
| 8.00% |
|
| 7/25/44 |
| 372,572 |
|
44,301 |
|
| 8.20% |
|
| 4/25/25 |
| 46,127 |
|
28,024 |
|
| 8.50% |
|
| 1/25/21 |
| 30,896 |
|
28,752 |
|
| 8.50% |
|
| 4/25/21 |
| 29,744 |
|
241,130 |
|
| 8.50% |
|
| 9/25/21 |
| 258,952 |
|
84,953 |
|
| 8.50% |
|
| 1/25/25 |
| 92,179 |
|
452,890 |
|
| 8.50% |
|
| 6/25/30 |
| 502,981 |
|
61,230 |
|
| 8.75% |
|
| 9/25/20 |
| 65,347 |
|
138,067 |
|
| 8.95% |
|
| 10/25/20 |
| 153,726 |
|
416,758 |
|
| 9.00% |
|
| 7/25/19 |
| 460,728 |
|
244,274 |
|
| 9.00% |
|
| 12/25/19 |
| 271,374 |
|
92,189 |
|
| 9.00% |
|
| 5/25/20 |
| 100,036 |
|
50,300 |
|
| 9.00% |
|
| 6/25/20 |
| 54,724 |
|
138,974 |
|
| 9.00% |
|
| 6/25/20 |
| 151,693 |
|
22,140 |
|
| 9.00% |
|
| 7/25/20 |
| 24,397 |
|
137,742 |
|
| 9.00% |
|
| 9/25/20 |
| 153,605 |
|
74,728 |
|
| 9.00% |
|
| 10/25/20 |
| 82,965 |
|
1,081,559 |
|
| 9.00% |
|
| 1/25/21 |
| 1,203,267 |
|
175,072 |
|
| 9.00% |
|
| 3/1/24 |
| 200,917 |
|
1,210,167 |
|
| 9.00% |
|
| 11/25/28 |
| 1,291,116 |
|
128,601 |
|
| 9.25% |
|
| 1/25/20 |
| 143,755 |
|
104,780 |
|
| 9.50% |
|
| 12/25/18 |
| 116,138 |
|
220,391 |
|
| 9.50% |
|
| 3/25/20 |
| 243,682 |
|
52,917 |
|
| 9.50% |
|
| 4/25/20 |
| 57,842 |
|
174,747 |
|
| 9.50% |
|
| 5/25/20 |
| 196,061 |
|
207,110 |
|
| 9.50% |
|
| 11/25/20 |
| 230,012 |
|
68,383 |
|
| 9.50% |
|
| 11/25/31 |
| 76,244 |
|
333,260 |
|
| 9.60% |
|
| 3/25/20 |
| 374,860 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 31,984,608 |
|
|
|
|
|
|
|
|
|
| |
Government National Mortgage Association: |
| ||||||||
Par ($) |
|
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
|
| |||||
473,015 |
|
| 4.00% |
|
| 10/17/29 |
| 467,602 |
|
326,570 |
|
| 8.00% |
|
| 1/16/30 |
| 344,528 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 812,130 |
|
|
|
|
|
|
|
|
|
| |
Vendee Mortgage Trust: |
|
|
|
| |||||
Par ($) |
|
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |
|
|
|
|
| |||||
1,000,000 |
|
| 5.00% |
|
| 8/15/28 |
| 1,018,551 |
|
1,000,000 |
|
| 5.00% |
|
| 7/15/30 |
| 970,353 |
|
130,271 |
|
| 5.63% |
|
| 2/15/24 |
| 134,098 |
|
1,939,940 |
|
| 6.00% |
|
| 2/15/30 |
| 2,013,660 |
|
9,437,417 |
|
| 6.50% |
|
| 12/15/28 |
| 10,300,357 |
|
4,046,620 |
|
| 7.00% |
|
| 9/15/27 |
| 4,363,463 |
|
446,859 |
|
| 7.25% |
|
| 9/15/25 |
| 491,633 |
|
314,935 |
|
| 8.29% |
|
| 12/15/26 |
| 350,022 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 19,642,137 |
|
|
|
|
|
|
|
|
|
| |
Total collateralized mortgage obligations |
| 74,187,795 |
| ||||||
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| ||
|
|
|
| ||||||
| |||||||||
Short-Term Securities (3.1%) (2) |
|
| |||||||
652,000 |
|
| FHLB A.D.N., 2.10%, 4/4/08 |
| 651,886 |
| |||
300,000 |
|
| FHLB A.D.N., 2.14%, 4/7/08 |
| 299,893 |
| |||
1,000,000 |
|
| FHLB A.D.N., 2.14%, 4/11/08 |
| 999,406 |
| |||
450,000 |
|
| FFCB A.D.N., 2.14%, 4/4/08 |
| 449,920 |
| |||
700,000 |
|
| FHLMC A.D.N., 2.11%, 4/3/08 |
| 699,918 |
| |||
885,000 |
|
| FHLMC A.D.N., 2.14%, 4/4/08 |
| 884,842 |
| |||
3,817,085 |
|
| Dreyfus Cash Mgmt. Fund, 2.78% |
| 3,817,085 |
| |||
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| 7,802,950 |
|
|
|
|
|
|
|
|
|
| |
Total short-term securities |
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
Total investments in securities |
|
| $ 255,427,369 |
| |||||
|
|
|
|
|
|
20 See accompanying notes to portfolios of investments on page 58.
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
21
|
|
|
|
|
|
|
|
| |
| One Year Ended March 31, 2008 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 3/31/08: |
| $9.16 Per Share |
| ||
3/31/07: |
| $9.72 Per Share |
| ||
Total Net Assets: |
| $322.6 Million |
| ||
30-day SEC Yield: |
| 4.68% |
| ||
Tax Equivalent Yield: |
| 7.20%(1) |
| ||
12-Month Distribution Rate: |
| 4.19% |
| ||
Average Maturity: |
| 14.0 Years |
| ||
Duration to Estimated Avg. Life: |
| 4.7 Years(2) |
| ||
Implied Duration: |
| 5.4 Years(2) |
|
|
|
| (1) | For individuals in the 35.0% federal tax bracket. |
| (2) | See next page. |
|
PORTFOLIO STRUCTURE |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
| Sit |
| Lehman |
| Lipper |
| ||||
3 Month** |
| -1.19 | % |
| 1.93 | % |
| -1.42 | % |
| |
6 Month** |
| -1.80 |
|
| 3.88 |
|
| N/A |
|
| |
1 Year |
| -1.72 |
|
| 6.19 |
|
| -0.79 |
|
| |
5 Years |
| 2.39 |
|
| 3.42 |
|
| 3.48 |
|
| |
10 Years |
| 3.28 |
|
| 4.65 |
|
| 4.18 |
|
| |
Inception |
| 5.45 |
|
| 5.80 |
|
| 6.00 |
|
| |
(9/29/88) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
| Sit |
| Lehman |
| Lipper |
| ||||
1 Year |
| -1.72 | % |
| 6.19 | % |
| -0.79 | % |
| |
5 Year |
| 12.54 |
|
| 18.28 |
|
| 18.63 |
|
| |
10 Year |
| 38.09 |
|
| 57.59 |
|
| 50.59 |
|
| |
Inception |
| 181.69 |
|
| 200.29 |
|
| 212.05 |
|
| |
(9/29/88) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 3/31/08. |
|
|
|
|
| **Not annualized. | |||||
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (9/29/88) and held until 3/31/08 would have grown to $28,169 in the Fund or $30,029 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
|
|
|
|
|
|
|
| ||
|
| |||
Adviser’s | ||||
AAA |
| 0.0 | % | |
AA |
| 0.0 |
| |
A |
| 2.8 |
| |
BBB |
| 6.0 |
| |
BB |
| 15.9 |
| |
<BB |
| 2.5 |
| |
|
| |||
Total |
| 27.2 | % |
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
23
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Municipal Bonds (93.1%) (2) |
|
| ||
Alabama (1.3%) |
|
|
|
|
300,000 |
| AL Wtr. Pollution Ctrl. Auth. Revolving Fund Lien Series 1998-B (AMBAC insured), 5.00%, 8/15/21 |
| 302,313 |
740,000 |
| ASMS Pub. Educ. Bldg. Rev Series 2006-B (ASMSF LLC Proj.) (Ambac insured), 4.375%, 9/1/26 |
| 716,927 |
675,000 |
| Birmingham-Southern College Private Educ. Bldg. Rev. Series 1997, 5.35%, 12/1/19 |
| 656,127 |
100,000 |
| DCH Hlth. Care Auth. Fac. Rev. Series 1998 (MBIA insured), 4.875%, 6/01/13 |
| 101,502 |
|
| Huntsville Hlth. Care Auth. Rev. : |
|
|
200,000 |
| Series 1997-A (MBIA insured), 5.00%, 6/1/17 |
| 203,856 |
1,000,000 |
| Series 2002-A, 5.625%, 6/1/32 |
| 1,020,780 |
250,000 |
| Series 2007-A, variable rate, 6/1/32 |
| 175,000 |
600,000 |
| Huntsville-Redstone Vlg. Spl. Care Facs. Fin. Auth. Rev Series 2007 (Redstone Vlg. Proj.), 5.25%, 1/1/15 |
| 576,066 |
300,000 |
| Montgomery Educ. Bldg. Auth. Rev. Ref. Series 2007 (Faulkner Univ. Proj.) (Radian insured), 5.25%, 10/1/32 |
| 283,806 |
250,000 |
| Valley Spl. Care. Facs. Fin. Auth. Rev. Series 1997-A (Lanier Mem. Hosp.), 5.45%, 11/1/11 |
| 253,325 |
|
|
| ||
|
|
|
| 4,289,702 |
|
|
| ||
Alaska (0.1%) |
|
|
|
|
325,000 |
| Alaska Indl. Dev. & Expt. Auth. Cmnty. Provider Rev. Series 2007 (Boys & Girls Home Proj.), 5.45%, 12/1/11 |
| 327,795 |
|
|
| ||
|
|
|
|
|
Arizona(4.1%) |
|
|
|
|
1,500,000 |
| Arizona Hlth. Care Facility Auth. Rev. Series 2007 (Beatitudes Campus Proj.), 4.75%, 10/1/10 |
| 1,476,450 |
1,162,757 |
| Arizona Hlth. Facs. Auth. Rev. Series 2007-A (New Ariz. Family Proj.), 5.25%, 7/1/27 |
| 1,152,176 |
200,000 |
| Bullhead City Special Assessment Impt. Dist. Series 1993 (Bullhead Pkwy. Proj.), 6.10%, 1/1/10 |
| 200,982 |
500,000 |
| Flagstaff Spl. Assessment Series 2007 (Aspen Place Sawmill Impt. Proj.), 5.00%, 1/1/22 |
| 500,625 |
250,000 |
| Glendale Indl. Dev. Auth. Unrefunded Balance Series 1998-A (Midwestern Univ. Proj.), 5.375%, 5/15/28 |
| 250,305 |
500,000 |
| Maricopa Co. Indl. Dev. Auth. Hlth. Facs. Rev. Series 2007-A (Catholic Healthcare West Proj.), 5.25%, 7/1/32 |
| 481,385 |
|
| Maricopa Co. Indl. Dev. Auth. Multifamily Hsg. Rev.: |
|
|
400,000 |
| Series 1996-A (Place Five & Greenery Apts. Proj.), Escrowed to Maturity, 6.625%, 1/1/27 |
| 437,936 |
480,000 |
| Series 1996-B (Advantage PT, etc. Proj.), Escrowed to Maturity, 7.375%, 7/1/26 |
| 484,166 |
100,000 |
| Maricopa Co. Pollution Ctrl. Rev. Ref. Public Svc. Series 1996-A (New Mexico Public Svc. Co. Proj.), 6.30%, 12/1/26 |
| 100,092 |
150,000 |
| Parkway Cmnty. Facility Dist. No. 1 G.O. Series 2006, 4.85%, 7/15/15 |
| 145,281 |
700,000 |
| Phoenix Street & Hwy. User Rev. Ref. Jr. Lien Series 1992, 6.25%, 7/1/11 |
| 702,058 |
|
| Pima Co. Indl. Dev. Auth. Educ. Rev.: |
|
|
295,000 |
| Series 2004-I (AZ Charter Schools Proj.), 5.00%, 7/1/12 |
| 299,487 |
250,000 |
| Series 2004-A (Noah Webster Basic School Proj.), 5.25%, 12/15/16 |
| 249,118 |
210,000 |
| Series 2005-M (AZ Charter Schools Proj.), 5.70%, 7/1/23 |
| 200,911 |
705,000 |
| Series 2006 (Choice Educ. & Dev. Corp. Proj.), 6.00%, 6/1/16 |
| 710,358 |
900,000 |
| Series 2006-A (Sonoran Science Academy Proj.). 5.35%, 12/1/17 |
| 863,847 |
500,000 |
| Series 2007-A (American Charter Schools Foundation Proj.), 5.125%, 7/1/15 |
| 495,190 |
560,000 |
| Series 2007-O (AZ Charter Schools Proj.), 4.65%, 7/1/14 |
| 544,863 |
400,000 |
| Ref. Series 2007 (Tucson Country Day School Proj.), 5.00%, 6/1/22 |
| 358,628 |
500,000 |
| Series 2007 (Center For Academic Success Proj.), 5.375%, 7/1/22 |
| 468,475 |
150,000 |
| Pinal Co. Elem. Sch. Dist. No. 44 C.O.P. Series 2006, 4.10%, 3/1/09 (5) |
| 150,867 |
565,000 |
| Pinal Co. Indl. Dev. Auth. Correctional Fac. Rev. Series 2006-A (Florence West Prison Proj.) |
|
|
|
| (ACA insured), 5.25%, 10/1/23 |
| 529,117 |
500,000 |
| Pinal Co. Certificate of Participation Series 2004, 5.00%, 12/1/26 (5) |
| 493,990 |
|
| Quail Creek Cmnty. Fac. Dist. G.O. Series 2006: |
|
|
585,000 |
| 4.85%, 7/15/12 |
| 584,152 |
500,000 |
| 5.15%, 7/15/16 |
| 488,305 |
360,000 |
| Verrado Cmnty. Facilities Dist. No. 1 G. O. Series 2006, 4.85%, 7/15/14 |
| 357,743 |
500,000 |
| Westpark Cmnty. Facilities Dist. G.O. Series 2006, 4.90%, 7/15/16 |
| 479,110 |
|
|
| ||
|
|
|
| 13,205,617 |
|
|
|
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| Arkansas (0.3%) |
|
|
|
|
| 1,000,000 |
| White Co. Hlth. Care Fac. Rev. Series 2005 (White Co. Med. Ctr. Proj.), 5.00%, 12/1/14 |
| 1,018,080 |
|
|
|
| ||
|
|
|
|
|
|
| California (6.5%) |
|
|
|
|
| 100,000 |
| Agua Caliente Band Cahuilla Indians Rev. Series 2003, 4.60%, 7/1/08 |
| 100,211 |
| 120,000 |
| Bay Area Govt. Assoc. Tax Allocation Rev. Series 1994-A (FSA insured), 6.00%, 12/15/14 |
| 120,908 |
| 250,000 |
| Blythe Redev. Agy. Tax Allocation Ref. Series 1997 (Proj. No. 1), 5.80%, 5/1/28 |
| 233,160 |
| 405,000 |
| CA Co. Tobacco Securitization Agy. Asset-Backed Rev. Series 2002 (Alameda Co.), 4.75%, 6/1/19 |
| 389,549 |
| 350,000 |
| CA Co. Tobacco Securitization Agy. Asset-Backed Conv. Bond Rev. Series 2007-B, 5.10%, 6/1/28 |
| 277,095 |
|
|
| CA Co. Tobacco Securitization Agy. Rev. Series 2007-A (Golden Gate Tob. Proj.): |
|
|
| 500,000 |
| 4.50%, 6/1/21 |
| 458,835 |
| 500,000 |
| 5.00%, 6/1/36 |
| 408,015 |
|
|
| CA Cmnty. Hsg. Fin. Agy. Lease Rev. Pass Thru Oblig.: |
|
|
| 120,000 |
| Series 2005-D, 4.875%, 4/1/12 |
| 117,840 |
| 360,000 |
| Series 2005-F, 4.85%, 11/1/12 |
| 353,419 |
| 220,000 |
| CA Dept. Water Resources Rev. Series 1996-Q (Central Valley Proj.)(MBIA insured), 5.375%, 12/1/27 |
| 220,433 |
| 135,000 |
| CA Educ. Facs. Auth. Rev. Refunded Series 1996 (Chapman Univ. Proj.), 5.125%, 10/1/26 |
| 136,038 |
| 50,000 |
| CA G.O. Series 1996, 5.25%, 6/1/21 |
| 50,052 |
| 495,000 |
| CA Govt. Fin. Auth. Lease Rev. Series 2003-A (Placer Co. Transportation Proj.), 6.00%, 12/1/28 |
| 506,405 |
|
|
| CA Hlth. Facs. Fin. Auth. Rev.: |
|
|
| 500,000 |
| Series 2001, 5.00%, 4/01/08 |
| 500,000 |
| 500,000 |
| Series 2002, 5.50%, 4/01/11 |
| 520,290 |
| 150,000 |
| Series 1998-A (Kaiser Permanente Proj.), 5.50%, 6/1/22 |
| 153,442 |
| 600,000 |
| CA Fin. Auth. Educ. Rev. Series 2006-A (American Heritage Educ. Fndtn. Proj.), 5.25%, 6/1/26 |
| 532,350 |
|
|
| CA Public Works Board Lease Rev. Series 1993-A (Various CA State Univ. Proj.): |
|
|
| 300,000 |
| 5.25%, 12/1/13 (5) |
| 300,588 |
| 625,000 |
| 5.50%, 12/1/18 |
| 625,700 |
|
|
| CA Statewide Cmntys. Dev. Auth. Rev.: |
|
|
| 480,000 |
| Series 2005 (Daughters of Charity Hlth. Proj.), 5.25%, 7/1/11 |
| 496,162 |
| 1,000,000 |
| Series 2007 (Lancer Educ. Student Hsg. Proj.), 5.40%, 6/1/17 |
| 999,200 |
| 450,000 |
| CA Statewide Cmntys. Dev. Auth. Spl. Tax Series 2007-1 (Orinda Proj.), 6.00%, 9/1/29 |
| 427,135 |
| 1,000,000 |
| CA Statewide Cmntys. Dev. Auth. Multifamily Rev. Series 2001 (Orange Tree Proj.) |
|
|
|
|
| (GNMA collateralized), 6.15%, 11/20/36 |
| 1,063,800 |
| 235,000 |
| Garden Grove C.O.P Series 1993 (Bahia Village/Emerald Isle Proj.)(FSA insured), 5.70%, 8/1/23 |
| 236,022 |
| 175,000 |
| Industry Urban Dev. Agy. Tax Allocation Ref. Series 2002-2, 4.75%, 5/1/21 |
| 175,450 |
| 775,000 |
| Intercommunity Hosp. Fin. Auth. C.O.P Series 1998 (ACA insured), 5.25%, 11/1/19 |
| 744,418 |
| 250,000 |
| Lompoc Healthcare Dist. G.O. Series 2007 (Election 2005) (XLCA insured), 5.00%, 8/1/34 |
| 241,465 |
| 750,000 |
| Los Angeles Hsg. Auth. Rev. Series 2007-A (Radian insured), 5.00%, 6/1/29 |
| 713,280 |
| 500,000 |
| Northern CA Gas Auth. No. 1 Rev. Series 2007, variable rate, 7/1/27 |
| 350,000 |
| 700,000 |
| Northern CA Pwr. Agy. Pub. Pwr. Rev. Ref. Series 1998-A (Hydroelectric Proj. #1), 5.20%, 7/1/32 |
| 699,944 |
| 660,000 |
| Northern CA Tobacco Securitization Auth. Asset-Backed Rev. Series 2005-A1, 4.75%, 6/1/23 |
| 613,978 |
| 500,000 |
| Sacramento Co. Wtr. Fin. Auth. Rev. Series 2007-B (Wtr. Agy. Zones 40 & 41 Proj.), Variable rate, 6/1/39 |
| 355,000 |
| 1,000,000 |
| San Bernardino City. Sch. Dist. G.O. Cap. Appreciation Series 2007 (MBIA insured), |
|
|
|
|
| zero coupon, 4.72% effective yield, 8/1/29 |
| 283,030 |
| 2,750,000 |
| San Bernardino Co. C.O.P. Series 1996 (Med. Ctr. Fin. Proj.) (MBIA insured), 5.00%, 8/1/28 |
| 2,750,990 |
| 750,000 |
| San Joaquin Hills Toll Rd. Rev. Refunding Series 1997-A, 5.25%, 1/15/30 |
| 746,280 |
| 500,000 |
| Santa Clara Redev. Agy. Tax Allocation Series 2003 (Bayshore North Proj.) (MBIA insured), 5.00%, 6/1/15 |
| 501,700 |
|
|
| Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev.: |
|
|
|
|
| Series 2006: |
|
|
| 215,000 |
| 4.50%, 3/1/11 |
| 216,393 |
| 385,000 |
| 4.875%, 3/1/16 |
| 382,116 |
See accompanying notes to portfolios of investments on page 58. 25
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
2,000,000 |
| Series 2001-B, 6.00%, 5/15/22 |
| 2,004,900 |
250,000 |
| Stockton Pub. Fin. Rev. Series 2006-A (Redevelopment Projects) (Radian insured), 5.00%, 9/1/22 |
| 251,525 |
500,000 |
| Vernon Natural Gas Fin. Auth. Rev. Series 2006-A2 (Vernon Gas Proj.) (MBIA insured), 5.00%, 8/1/21 |
| 500,445 |
250,000 |
| Yuba Redev. Agy. Tax. Allocation Series 2007, 5.125%, 9/1/27 |
| 243,540 |
|
|
|
| |
|
|
|
| 21,001,103 |
|
|
|
| |
Colorado (1.8%) |
|
|
|
|
250,000 |
| Baptist Rd. Rural Transportation Auth. Sales & Use Tax. Rev. Series 2007, 4.80%, 12/1/17 |
| 228,937 |
215,000 |
| CO Educ. & Cultural Fac. Rev. Ref. Series 2003-C (Cheyenne Mtn. Charter Sch. Proj.), 4.625%, 6/15/12 |
| 229,330 |
|
| CO HFA Single Family Program Senior Series: |
|
|
20,000 |
| 1996B-2, 7.45%, 11/1/27 |
| 20,376 |
15,000 |
| 1997B-3, 6.80%, 11/1/28 |
| 15,268 |
|
| CO Hlth. Fac. Auth. Rev.: |
|
|
195,000 |
| Series 2000-A (Porter Place Proj.) (GNMA collateralized), 5.10%, 1/20/11 |
| 201,332 |
160,000 |
| Unrefunded Balance Rev. Series 2000 (Evangelical Lutheran Proj.), 6.25%, 12/1/10 |
| 168,648 |
1,000,000 |
| Compark Business Campus Met. Dist. Ref. & Impt. G.O. Series 2007-A (Radian insured), 5.75%, 12/1/27 |
| 1,029,800 |
1,000,000 |
| Denver Hlth. & Hosp. Auth. Healthcare Rev. Series 2007-B, variable rate, 12/1/33 |
| 680,000 |
600,000 |
| Denver Hsg. Corp. Multifamily Rev. Ref. Series 1997-A (Section 8), 5.35%, 10/1/12 |
| 606,540 |
250,000 |
| Fiddlers Business Impt. Dist Greenwood Vlg. Ref. & Cap. Impt.. G.O. Sr. Lien Series 2007-1, |
|
|
|
| (ACA insured), 5.00%, 12/1/32 |
| 195,525 |
250,000 |
| Interlocken Met. Dist. Ref. & Impt. G.O. Series 1999-B (Radian insured), 5.75%, 12/15/19 |
| 262,530 |
500,000 |
| Inverness Wtr. & Sanitation Dist. Arapahoe & Dougles Cos. G.O. Series 2006-A |
|
|
|
| (Radian insured), 4.60%, 12/1/19 |
| 482,880 |
919,563 |
| Lyons Rev. Series 2006 (Longmont Humane Soc. Proj.), 4.75%, 11/30/16 |
| 889,677 |
500,000 |
| Maher Ranch Met. Dist. No. 4 Ref. G.O. Series 2007 (Radian insured), 5.25%, 12/1/36 |
| 467,030 |
500,000 |
| Walker Field Pub. Airport Auth. Rev. Series 2007, 4.75%, 12/1/27 |
| 425,335 |
|
|
|
| |
|
|
|
| 5,903,208 |
|
|
|
| |
Connecticut (0.8%) |
|
|
| |
1,000,000 |
| CT Dev. Auth. Pollution Ctrl. Rev. Ref. Series 1993-A (CT Light & Power Proj.), 5.85%, 9/1/28 |
| 999,940 |
500,000 |
| CT Hlth. & Educ. Facs. Auth. Rev. Series 1995-C (Bridgeport Hosp. Proj.) |
|
|
|
| (Connie Lee insured), 5.25%, 7/1/15 |
| 502,905 |
450,000 |
| Series 2007-C (Hosp. Spl. Care Proj.), 5.25%, 7/1/27 |
| 453,240 |
|
| Mashantucket Western Pequot Tribe Subordinated Special Rev.: |
|
|
300,000 |
| Series 1997-B, 5.75%, 9/1/18 |
| 300,264 |
500,000 |
| Series 1999-B, zero coupon, 5.12% effective yield, 9/1/26 |
| 321,480 |
|
|
|
| |
|
|
|
| 2,577,829 |
|
|
|
| |
Delaware (0.1%) |
|
|
|
|
500,000 |
| Millsboro Spl. Oblig. Rev. Series 2007-A (Plantation Lakes Spl. Dev. Proj.), 5.45%, 7/1/36 |
| 411,925 |
|
|
|
| |
|
|
|
|
|
Florida (8.6%) |
|
|
|
|
90,000 |
| Arbor Greene Cmnty. Dev. Dist. Spl. Assmt. Rev. Ref. Series 2006, 5.00%, 5/1/19 |
| 89,241 |
780,000 |
| Belmont Cmnty. Dev. Dist. Cap. Impt. Rev. Series 2006-B, 5.125%, 11/01/14 |
| 700,042 |
100,000 |
| Broward Co. Hsg. Fin. Auth. Multifamily Hsg. Rev. Ref. Series 1996 (Tamarac Pointe Apt. Proj.) |
|
|
|
| (GNMA collateralized), 6.15%, 7/1/16 |
| 100,450 |
415,000 |
| Capital Trust Agy. Hsg. Rev. Series 2005-B (Sub-Atlandtic Hsg. Foundation Proj.), 4.50%, 7/1/15 |
| 390,191 |
|
| Capital Trust Agy. Multifamily Rev. Sr. Series 2003-A: |
|
|
625,000 |
| (Golf Villas, Rivermill, and Village Square Apts. Proj.), 4.75%, 6/1/13 |
| 601,944 |
1,000,000 |
| (American Opportunity Proj.), 5.875%, 6/1/38 |
| 854,380 |
50,000 |
| Clearwater Hsg. Auth. Rev. Ref. Series 1997 (Hamptons At Clearwater Proj.) (ACA insured), 5.40%, 5/1/13 |
| 49,975 |
45,000 |
| Cocoa Cap. Impt. Rev. Series 1998 (MBIA insured), 5.00%, 10/1/22 |
| 45,324 |
50,000 |
| Collier Co. Indl. Dev. Auth. Hlth. Care Facs. Rev. Series 2004 (Naples Cmnty. Hosp. Proj.), 4.65%, 10/1/34 |
| 50,176 |
515,000 |
| Collier Co. HFA Multifamily Hsg. Rev. Series 2002-C (Goodlette Arms Proj.), 5.25%, 8/15/15 |
| 530,919 |
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| 440,000 |
| Concorde Estates Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2004-B, 5.00%, 5/1/11 |
| 420,974 |
| 400,000 |
| Connerton West Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2007-B, 5.125%, 5/1/16 |
| 352,688 |
| 630,000 |
| Escambia Co. Hlth. Facs. Auth. Rev. Series 1998 (Baptist Hosp. & Manor Proj.), 5.125%, 10/1/19 |
| 627,026 |
| 100,000 |
| Fiddlers Creek Cmnty. Dev. Dist. No. 2 Spl. Assmt. Rev. Series 2003-B, 5.75%, 5/1/13 |
| 97,000 |
| 25,000 |
| FL Brd. Pub. Educ. Cap. Outlay G.O. Ref. Series 1989-A, 5.00%, 6/1/24 |
| 25,024 |
| 45,000 |
| FL Correctional Privatization Commn. Certificate of Participation Series 1995-B |
|
|
|
|
| (Polk Co. 350 Bed Youth Proj.), 5.00%, 8/1/17 |
| 45,073 |
| 90,000 |
| Forest Creek Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2005-B, 4.85%, 5/1/11 |
| 84,758 |
| 395,000 |
| Heritage Isle At Viera Cmnty. Dev. Dist. Special Assessment Series 2006, 5.00%, 11/1/13 |
| 362,744 |
|
|
| Highlands Co. Hlth. Fac. Auth. Hosp. Rev. (Aventist Hlth. Proj.): |
|
|
| 90,000 |
| Ref. Series 2005-B, 5.00%, 11/15/30 |
| 83,551 |
| 200,000 |
| Series 2006-C, 5.25%, 11/15/36 |
| 188,700 |
| 85,000 |
| Hillsborough Co. Educ. Facs. Auth Rev. Ref. Series 1998 (Univ. of Tampa Proj.), 5.75%, 4/1/18 |
| 87,939 |
| 250,000 |
| Hillsborough Co. Indl. Dev. Auth. Hosp. Rev. Ref. Series 2003-B (Tampa Gen. Hosp. Proj.), 5.25%, 10/1/28 |
| 242,970 |
| 475,000 |
| Hillsborough Co. Indl. Dev. Auth. Indl. Rev. Series 1999-A (Hlth. Facs. Proj. - Univ. Cmnty. Hosp.), |
|
|
|
|
| 5.625%, 8/15/23 |
| 458,161 |
| 185,000 |
| Gateway Services Cmnty. Dev. Dist. Spl. Assmt. Series 2003-B (Sun City Ctr. Proj.), 5.50%, 5/1/10 |
| 181,367 |
| 250,000 |
| Gramercy Farms Cmnty. Dev. Dist. Spl. Assessment Series 2007-B, 5.10%, 5/1/14 |
| 225,857 |
| 580,000 |
| Jacksonville Econ. Dev. Commn. Hlth. Care Facs. Rev. Ref. Series 2007-A |
|
|
|
|
| (FL Proton Therapy Inst. Proj.), 6.00%, 9/1/17 |
| 564,143 |
| 500,000 |
| Jacksonville Hlth. Facs. Auth. Rev. Series 2007 (Brooks Hlth. Sys. Proj.), 5.00%, 11/1/22 |
| 487,350 |
| 500,000 |
| Lake Ashton Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/11 |
| 464,720 |
|
|
| Lakeland Hosp. Sys. Rev. Ref.: |
|
|
| 80,000 |
| Series 1996 (Lakeland Regl. Med. Center Proj.), 5.25%, 11/15/25 |
| 80,361 |
| 450,000 |
| Series 1997 (Lakeland Regl. Med. Center Proj.) (MBIA insured), 5.00%, 11/15/22 |
| 451,156 |
| 1,000,000 |
| Lee Co. Indus. Dev. Auth. Hlth. Care Fac. Rev. Series 2007-A (Lee Charter Foundation), 5.25%, 6/15/27 |
| 831,320 |
| 250,000 |
| Magnolia Creek Cmnty. Dev. Dist. Rev. Series 2007-B, 5.60%, 5/1/14 |
| 231,950 |
| 300,000 |
| Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.25%, 11/1/14 |
| 271,194 |
| 500,000 |
| Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2008-B, 6.90%, 5/1/17 |
| 495,715 |
| 405,000 |
| Marion Co. Hosp. Dist. Rev. Series 1999 (Munroe Hlth. Sys. Proj.), 5.25%, 10/1/10 |
| 423,820 |
| 405,000 |
| Martin Co. Hlth. Fac. Auth. Hosp. Rev. Ref. Series 2002-B (Martin Memorial Med. Ctr. Proj.), |
|
|
|
|
| 4.875%, 11/15/12 |
| 417,733 |
| 820,000 |
| Miami Beach Hlth. Facs. Auth. Hosp. Rev. Series 1998 (Mt. Sinai Med. Ctr. Proj.), 5.375%, 11/15/28 |
| 702,281 |
|
|
| Miami - Dade Co. Spl. Obligation: |
|
|
| 265,000 |
| Sub. Series 1997-B, zero coupon, 5.44% effective yield, 10/1/33 |
| 63,531 |
| 100,000 |
| Cap. Apprec. & Income Sub Series 2005-B, variable rate, 10/1/35 |
| 87,096 |
| 40,000 |
| Miami-Dade Co. Pub. Service Tax Rev. Series 1999 (UMSA Pub. Impts. Proj.), 5.00%, 10/1/23 |
| 41,000 |
| 1,000,000 |
| New River Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 5/1/13 |
| 912,820 |
| 120,000 |
| Orange Co. Hlth. Facs. Auth. Rev. Ref. Series 2005 (Orlando Lutheran Proj.), 4.625%, 7/1/09 |
| 119,110 |
| 60,000 |
| Orlando & Orange Co. Expressway Auth. Rev. Jr. Lien Series 1998, 5.00%, 7/1/28 |
| 59,243 |
|
|
| Palm Beach Co. Hlth. Fac. Auth. Rev.: |
|
|
| 500,000 |
| Series 1997 (Abbey Delray South Proj.), 5.50%, 10/1/11 |
| 510,315 |
| 200,000 |
| Ref. Series 2003 (Abbey Delray South Proj.), 5.15%, 10/1/12 |
| 203,694 |
| 90,000 |
| Series 1993 (Jupiter Med. Ctr. Inc. Proj.) (FSA insured), 5.25%, 8/1/18 |
| 90,106 |
|
|
| Series 2007 (Waterford Proj.): |
|
|
| 250,000 |
| 5.25%, 11/15/17 |
| 244,883 |
| 500,000 |
| 5.375%, 11/15/22 |
| 467,975 |
| 10,000 |
| Parklands Lee Cmnty. Dev. Dist. Spl. Assmt. Series 2004-B, 5.125%, 5/1/11 |
| 9,551 |
| 55,000 |
| Pinellas Co. Swr. Rev. Ref. Unrefunded Balance Series 1998 (FGIC insured), 5.00%, 10/1/24 |
| 55,189 |
See accompanying notes to portfolios of investments on page 58. 27
|
|
|
|
|
| Sit Tax - Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| Pinellas Co. Educ. Fac. Auth. Rev. Series 2006 (Eckerd College Proj.) (ACA insured): |
|
|
350,000 |
| 4.50%, 10/1/14 |
| 341,527 |
680,000 |
| 4.625%, 10/1/16 |
| 651,386 |
3,105,000 |
| Port Everglades Auth. Rev. Ref. Series 1989-A (FSA insured), 5.00%, 9/1/16 |
| 3,123,195 |
750,000 |
| Riverwood Estates Cmnty. Dev. Dist. Spl. Assessment Series 2006-B, 5.00%, 5/1/13 |
| 682,230 |
500,000 |
| Sarasota Co. Hlth. Facs. Auth. Retirement Rev. Ref. Series 2007 (Village on the Isle Proj.), 5.50%, 1/1/27 |
| 451,215 |
250,000 |
| Sarasota Natl. Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2007, 5.30%, 5/1/39 |
| 188,623 |
500,000 |
| Seminole Tribe Spl. Oblig. Rev. Series 2007-A, 5.50%, 10/1/24 |
| 472,940 |
500,000 |
| St. Johns Co. Indl. Dev. Auth. Hlth. Care Rev. Ref. Series 2007-A (Bayview Proj.), 5.00%, 10/1/17 |
| 460,445 |
250,000 |
| South Broward Hosp. Dist. Rev. Ref. Series 2007 (South Broward Hosp. Dist. Proj.), 4.75%, 5/1/24 |
| 239,143 |
780,000 |
| South Lake Co. Hosp. Dist. Rev. Series 2003 (South Lake Hosp. Inc. Proj.), 5.50%, 10/1/13 |
| 824,873 |
850,000 |
| Sterling Hill Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series, 5.10%, 5/1/11 |
| 806,523 |
1,000,000 |
| Stoneybrook South Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.45%, 11/1/15 |
| 901,190 |
750,000 |
| Tolomato Cmnty. Dev. Dist. Spl. Assmt. Series 2007, 6.375%, 5/1/17 |
| 742,073 |
975,000 |
| Verano Ctr. Cmnty. Dev. Dist. Spl. Assessment Series 2006-B (Dist. No. 1 Infrastructure Proj.). 5.00%, 11/1/12 |
| 885,368 |
750,000 |
| Waters Edge Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/12 |
| 692,828 |
500,000 |
| Waterset North Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 6.55%, 11/1/15 |
| 481,220 |
50,000 |
| West Villages Impt. Dist. Spl. Assmt. Rev. Series 2006 (Unit of Dev. No. 3), 5.50%, 5/1/37 |
| 39,751 |
500,000 |
| Zephyr Ridge Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2006-B, 5.25%, 5/1/13 |
| 460,065 |
|
|
|
| |
|
|
|
| 27,627,325 |
|
|
|
| |
Georgia (1.6%) |
|
|
|
|
500,000 |
| Atlanta Dev. Auth. Rev. Series 2005-C (Tuff ATDC Proj.), 5.00%, 1/1/31 |
| 477,090 |
250,000 |
| Burke Co. Dev. Auth. Poll. Ctrl. Rev. Series 1994 (GA Pwr. Co. Vogtle Proj.), 4.375%, 10/1/32 |
| 250,100 |
750,000 |
| Chatham Co. Hosp. Auth. Rev. & Impt. Series 2004-A (Mem. Health Univ. Proj.), 5.50%, 1/1/34 |
| 636,967 |
1,490,000 |
| East Point Tax Allocation Series 2002-A, 8.00%, 2/1/26 |
| 1,597,950 |
750,000 |
| Fulton Co. Dev. Auth. Rev. Series 2007-A, 5.25%, 11/1/28 |
| 644,385 |
250,000 |
| Gainesville Redev. Auth. Educ. Facs. Rev. Ref. Series 2007 (Riverside Military Academy Proj.), 5.125%, 3/1/27 |
| 209,405 |
250,000 |
| Georgia St. Hsg. & Fin. Auth. Single Family Mtg. Rev. Sub. Series 2004, 4.50%, 6/1/25 |
| 233,777 |
250,000 |
| Medical Ctr. Hosp. Auth. Rev. Ref. Series 2007 (Spring Harbor Green Isl. Proj.), 5.25%, 7/1/27 |
| 202,173 |
|
| Private Colleges & Univ. Auth. Rev. Ref.: |
|
|
750,000 |
| Series 1999-A (Mercer Univ. Proj.), 5.25%, 10/1/14 |
| 766,073 |
100,000 |
| Series 2001 (Mercer Univ. Proj.), 5.00%, 10/1/11 |
| 103,991 |
|
|
|
| |
|
|
|
| 5,121,911 |
|
|
|
| |
Idaho (0.1%) |
|
|
|
|
250,000 |
| ID Hsg. & Fin. Assn. Nonprofit Facs. Rev. Series 2008-A (Idaho Arts Charter Sch. Proj.), 5.50%, 12/1/18 |
| 239,662 |
|
|
|
| |
Illinois (10.2%) |
|
|
|
|
300,000 |
| Annawan Tax Allocation Series 2007 (Patriot Renewable Fuels, LLC Proj.), 5.625%, 1/1/18 |
| 275,457 |
475,000 |
| Blue Island Tax Increment G.O. Ref. Series 1997 (MBIA insured), 5.10%, 12/15/12 |
| 475,850 |
20,000 |
| Chicago Metro Hsg. Dev. Corp. Mtg. Rev. Ref. Series 1992-A (FHA insured) (Section 8), |
|
|
|
| 6.85%, 7/1/22 |
| 20,720 |
250,000 |
| Du Page Co. Spl. Svc. Areano 31 Spl. Tax Series 2006 (Monarch Landing Proj.), 5.40%, 3/1/16 |
| 239,427 |
500,000 |
| Harvey Ref. & Impt. G.O. Series 2007-A, 5.50%, 12/1/27 |
| 465,320 |
100,000 |
| IL DFA Rev. Series 1998 (St. Patrick High School Proj.), 5.125%, 7/15/28 |
| 99,804 |
500,000 |
| IL DFA Rev. Ref. Series 2007 (Chicago Charter School Fdn. Proj.), 5.00%, 12/1/36 |
| 406,325 |
1,000,000 |
| IL Fin. Auth. Rev. Ref. Series 2007-A (Christian Homes, Inc. Proj.), 5.25%, 5/15/12 |
| 968,300 |
1,250,000 |
| IL DFA Pollution Control Rev. Ref. Series 2000-A (Ameren CIPS Proj.), 5.50%, 3/1/14 |
| 1,225,875 |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
| IL DFA Refunding & New Money Rev. (Cmty. Rehab. Providers Fac. Acquisition Program): |
|
|
| 415,000 |
| Series 1997-A, 6.05%, 7/1/19 |
| 417,826 |
| 120,000 |
| Series 1997-A, 5.90%, 7/1/09 |
| 121,260 |
| 1,560,000 |
| Series 1997-A, 6.00%, 7/1/15 |
| 1,572,371 |
| 1,240,000 |
| Series 1997-C, 5.65%, 7/1/19 |
| 1,250,813 |
| 850,000 |
| Series 1998-A, 5.50%, 7/1/12 |
| 861,024 |
| 285,000 |
| Series 1998-A, 5.70%, 7/1/19 |
| 287,782 |
| 330,000 |
| Series 2002-A (Cmnty. Rehab. Providers Fac. Proj.), 5.70%, 7/1/12 |
| 349,061 |
|
|
| IL Fin. Auth. Rev.: |
|
|
| 750,000 |
| Ref. Series 2006 (Luther Hillside Village Proj.), 5.25%, 2/1/37 |
| 677,017 |
| 700,000 |
| Series 2006-A (Three Crowns Park Plaza Proj.), 5.875%, 2/15/38 |
| 612,269 |
| 500,000 |
| Series 2006-B2 (Three Crowns Park Plaza Proj.), 5.40%, 2/15/38 |
| 488,480 |
|
|
| Series 2006 (Tabor Hills Supportive Living Proj.): |
|
|
| 1,000,000 |
| 4.40%, 11/15/12 |
| 989,660 |
| 500,000 |
| 5.25%, 11/15/26 |
| 453,045 |
|
|
| Series 2006-A (Montgomery Place Proj.): |
|
|
| 1,250,000 |
| 5.25%, 5/15/15 |
| 1,197,962 |
| 500,000 |
| 5.75%, 5/15/38 |
| 439,670 |
|
|
| Series 2007-A: |
|
|
| 650,000 |
| (Christian Homes, Inc. Proj.), 5.75%, 5/15/26 |
| 580,690 |
| 500,000 |
| (Sedgebrook, Inc. Fac. Proj.), 5.40%, 11/15/16 |
| 466,150 |
|
|
| IL Fin. Auth. Sports Fac. Rev.: |
|
|
|
|
| Series 2007-A (United Sports Org. of Barrington Proj.) (UTD insured): |
|
|
| 500,000 |
| 6.125%, 10/1/27 |
| 470,510 |
| 500,000 |
| 6.25%, 10/1/37 |
| 454,040 |
| 1,000,000 |
| Series 2008 (North Shore Ice Arena Proj.), 6.25%, 12/1/38 |
| 975,650 |
| 500,000 |
| IL Fin. Auth. Educ. Rev. Series 2006-E (Uno Charter School Network Proj.) (ACA Insured), 5.00%, 9/1/26 |
| 398,665 |
|
|
| IL Hlth. Fac. Auth. Rev.: |
|
|
| 350,000 |
| Ref. Series 1996-B (Sarah Bush Lincoln Hlth. Ctr. Proj.), 5.50%, 2/15/16 |
| 352,940 |
| 950,000 |
| Series 1997 (Sherman Hlth. Sys. Proj.), 5.50%, 8/1/12 |
| 961,533 |
| 605,000 |
| Ref. Series 1999 (Silver Cross Hosp. Proj.), 5.25%, 8/15/15 |
| 630,271 |
| 500,000 |
| Series 2000 (IA Health System Proj.), 6.75%, 2/15/13 |
| 541,110 |
| 590,000 |
| Ref. Series 2003 (Sinai Health Proj.) (FHA Insured), 5.15%, 2/15/37 |
| 571,527 |
| 200,000 |
| IL Sales Tax Rev. Series 1994-U, 5.00%, 6/15/10 |
| 200,380 |
|
|
| Lombard Public Facs. Corp. Rev. First Tier: |
|
|
|
|
| Series 2005-A1 (Conference Ctr. & Hotel Proj.): |
|
|
| 115,000 |
| 6.375%, 1/1/15 |
| 113,232 |
| 750,000 |
| (ACA insured) 5.50%, 1/1/25 |
| 666,345 |
| 1,000,000 |
| (ACA insured) 5.50%, 1/1/30 |
| 857,390 |
| 1,925,000 |
| Series 2005-B (Conference Ctr. & Hotel Proj.), 5.25%, 1/1/36 |
| 1,815,006 |
| 2,000,000 |
| Malta Tax Allocation Rev. Series 2006, 5.75%, 12/30/25 |
| 1,770,320 |
| 1,000,000 |
| Manhattan Spl. Service Area Spl. Tax No. 07-6 Series 2007 (Groebe Farm-Stonegate Proj.), 5.75%, 3/1/22 |
| 952,280 |
| 250,000 |
| Melrose Park Tax Increment G.O. Series 1999-A (FSA insured), 5.25%, 12/15/15 |
| 254,575 |
| 250,000 |
| Montgomery Ref. Impt. Spl. Assmt. Series 2007 (Lakewood Creek Proj.) (Radian insured), 4.70%, 3/1/30 |
| 221,843 |
| 250,000 |
| Quincy Hosp. Rev. Ref. Series 2007, 5.00%, 11/15/17 |
| 257,300 |
|
|
| Southwestern IL Dev. Auth. Rev.: |
|
|
|
|
| Series 1999 (Anderson Hosp. Proj.): |
|
|
| 750,000 |
| 5.375%, 8/15/15 |
| 763,448 |
| 2,625,000 |
| 5.625%, 8/15/29 |
| 2,540,843 |
| 750,000 |
| Ref. Series 2008-A (Local Govt. Prog.), 7.00%, 10/1/22 |
| 721,028 |
| 500,000 |
| Series 2006 (Village of Sauget Proj.), 5.625%, 11/1/26 |
| 440,660 |
See accompanying notes to portfolios of investments on page 58. 29
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
275,000 |
| Upper Illinois River Valley Dev. Auth. Rev. Series 2001 (Morris Hosp. Proj.), 6.05%, 12/1/11 |
| 294,225 |
440,000 |
| Will Co. Spl. Educ. Rev. Series 2006, 5.40%, 1/1/18 |
| 462,695 |
500,000 |
| Will Co. Student Hsg. Rev. Series 2002-A (Joliet Junior College Proj.), 6.375%, 9/1/13 (7) (8) |
| 325,000 |
|
|
|
| |
|
|
|
| 32,954,974 |
|
|
|
| |
|
|
| ||
Indiana (3.4%) |
|
| ||
500,000 |
| Anderson Economic Dev. Rev. Ref. & Impt. Series 2007 (Anderson Univ. Proj.), 4.75%, 10/1/21 |
| 459,225 |
100,000 |
| Bloomington Sewer Wks. Rev. Series 1999-A (MBIA insured), 5.20%, 1/1/29 |
| 100,322 |
500,000 |
| Boone Co. Redev. Tax Increment Rev. Series 2005-B, 5.375%, 8/1/23 |
| 502,660 |
315,000 |
| Central Nine Career Ctr. Bldg. Corp. Rev. Series 2007, 5.50%, 7/15/15 |
| 340,874 |
100,000 |
| Elkhart Co. Ind. Hosp. Auth. Rev. Series 1998 (Elkhart General Hosp. Proj.), 5.25%, 8/15/28 |
| 100,496 |
250,000 |
| Hammond Ind. Redev. Dist. Rev. Series 2008 (Marina Area Proj.), 6.00%, 1/15/17 |
| 245,297 |
|
| IN Hlth. & Educ. Fac. Fin. Auth. Rev.: |
|
|
400,000 |
| Series 2005 (Baptist Homes of IN Proj.), 5.25%, 11/15/25 |
| 390,544 |
1,000,000 |
| Series 2007 (Cmnty. Fndtn. Northwest Proj. ), 5.50%, 3/1/22 |
| 950,500 |
215,000 |
| IN Hlth. Fac. Fin. Auth. Hlth. Fac. Rev. Series 1998 (Holy Cross Health Sys. Corp. Proj.) |
|
|
|
| (MBIA insured), 5.00%, 12/1/28 |
| 215,247 |
|
| IN Hlth. Fac. Fin. Auth. Hosp. Rev.: |
|
|
|
| Series 1993 (Community Hosp. of Anderson Proj.) (MBIA insured): |
|
|
105,000 |
| 6.00%, 1/1/14 |
| 107,011 |
650,000 |
| 6.00%, 1/1/23 |
| 650,396 |
600,000 |
| Ref. Series 1998 (Floyd Memorial Hosp. & Hlth. Svcs. Proj.), 5.25%, 2/15/18 |
| 604,746 |
|
| Series 2001-A (Community Foundation Northwest IN): |
|
|
1,360,000 |
| 5.50%, 8/1/13 |
| 1,406,961 |
360,000 |
| 6.375%, 8/1/21 |
| 370,429 |
50,000 |
| 6.375%, 8/1/31 |
| 50,511 |
60,000 |
| Ref. Series 2001-A (Community Foundation Northwest IN), 5.50%, 8/1/13 |
| 65,692 |
300,000 |
| Series 2004-A (Community Foundation Northwest IN), 4.75%, 3/1/14 |
| 299,070 |
|
| IN Hlth. Fac. Fin. Auth. Rev. Ref. Series 1998: |
|
|
170,000 |
| (Greenwood Village South Proj.), 5.35%, 5/15/08 |
| 169,961 |
1,875,000 |
| (Marquette Manor Proj.), 5.00%, 8/15/18 |
| 1,876,969 |
1,155,000 |
| IN State Dev. Fin. Auth. Rev. Educ. Facs. Series 2003 (Archdiocese Indpls. Proj.), 5.50%, 1/1/33 |
| 1,164,309 |
500,000 |
| St. Joseph Co. Hosp. Auth. Hlth. Fac. Rev. Series 2005 (Madison Ctr. Oblig. Group Proj.), 5.25%, 2/15/28 |
| 442,990 |
500,000 |
| Vigo Co. Hosp. Auth. Rev. Series 2007 (Union Hosp. Inc. Proj.), 5.50%, 9/1/27 |
| 444,255 |
|
|
|
| |
|
|
|
| 10,958,465 |
|
|
|
| |
|
|
|
|
|
Iowa (1.0%) |
|
| ||
|
| Coralville Urban Renewal Rev. Tax Increment Series 2006-A: |
|
|
240,000 |
| 5.00%, 6/1/11 |
| 244,910 |
115,000 |
| 5.00%, 6/1/12 |
| 117,155 |
120,000 |
| 5.00%, 6/1/14 |
| 120,754 |
185,000 |
| 5.00%, 6/1/15 |
| 185,055 |
405,000 |
| Dickinson Co. Hsg. Sr. Rev. Series 2006-A (Spirit Lake - GEAC LLC Proj.), 5.375%, 12/1/16 |
| 370,433 |
345,000 |
| Iowa Fin. Auth. Cmnty. Provider Rev. Series 2007 (Boys & Girls Proj.), 5.40%, 12/1/10 |
| 347,660 |
|
| IA Fin. Auth. Sr. Hsg. Rev. Ref. Series: |
|
|
350,000 |
| 2006-A (Bethany Life Cmntys. Proj.), 5.20%, 11/1/16 |
| 320,145 |
410,000 |
| 2007-A (Wedum Walnut Ridge LLC Proj.), 5.00%, 12/1/14 |
| 386,634 |
100,000 |
| IA Fin. Auth Single Family Rev. Series 2000-D (GNMA/FNMA Mtg. Backed Sec. Proj.), 5.75%, 7/1/09 |
| 103,091 |
500,000 |
| Palo Alto Co. Hosp. Rev. Series 2006 (Palo Alto Co. Hosp. Proj.), 5.25%, 8/1/24 |
| 431,970 |
400,000 |
| Washington Co. Hosp. Rev. Series 2006 (Washington Co. Hosp. Proj.), 5.125%, 7/1/15 |
| 404,360 |
|
|
|
| |
|
|
|
| 3,032,167 |
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Kansas (0.2%) |
|
| ||
10,000 |
| Olathe & Labette Cos. Mtg. Loan Rev. Series 1991-B (GNMA collateralized) zero coupon, |
|
|
|
| 7.56% effective yield, 2/1/23 |
| 3,497 |
500,000 |
| KS Dev. Fin. Auth. Hsg. Dev. Rev. Series 2003-B1 (GNMA Collateralized), 5.60%, 5/20/34 |
| 506,135 |
250,000 |
| KS Dev. Fin. Auth. Hlth. Facs. Rev. Series 2008-F (Stermont-Vail Healthcare), 5.75%, 11/15/27 |
| 255,353 |
|
|
|
| |
|
|
|
| 764,985 |
|
|
|
| |
Kentucky (0.1%) |
|
| ||
220,000 |
| Dawson Springs Water & Sewer Rev. Ref. Series 1997, 5.10%, 9/1/13 |
| 224,679 |
|
|
|
| |
|
|
|
|
|
Louisiana (4.0%) |
|
| ||
7,200,000 |
| Capital Appreciation Series 2000-D1 (GNMA & FNMA collateralized) zero coupon, |
|
|
|
| 6.46% effective yield, 4/1/34 |
| 1,317,456 |
399,305 |
| Denham Springs - Livingston Hsg. & Mtg. Rev Series 2007, 5.00%, 11/1/40 |
| 401,218 |
|
| East Baton Rouge Fin. Auth. Single Family Mtg. Rev. Ref.: |
|
|
500,000 |
| Series 2007-A, 4.40%, 10/1/23 |
| 473,070 |
250,000 |
| Series 2007-B1 (GNMA/FNMA/FHLMC supported), 4.625%, 10/1/24 |
| 240,775 |
600,000 |
| Houma-Terrebonne Pub. Tr. Fin. Auth. Single Family Mortgage-Backed Rev. |
|
|
|
| Series 2007 (GNMA/FNMA/FHLMC supported), 5.15%, 12/1/40 |
| 608,712 |
|
| Jefferson Parish Fin. Auth. Single Family Mtg. Rev. Series 2007-D: |
|
|
300,000 |
| 4.00%, 12/1/23 |
| 294,882 |
1,900,000 |
| 5.00%, 6/1/38 |
| 1,807,147 |
400,000 |
| Juban Park Cmnty. Dev. Dist. Special Assessment Series 2006, 5.15%, 10/1/14 |
| 378,012 |
1,242,000 |
| Layayette Pub. Fin. Auth. Single Family Mortgage Backed Rev. |
|
|
|
| Series 2007 (GNMA/FNMA/FHLMC supported), 5.35%, 1/1/41 |
| 1,287,718 |
2,250,000 |
| LA Hsg. Fin. Agy. Single Family Mtg. Rev. Series 2007-B1, 5.70%, 12/1/38 |
| 2,383,065 |
600,000 |
| LA Loc. Gov. Envir. Facs. Cmnty. Dev. Auth. Rev. Series 2007 (LA Local Gov. Proj.), 6.75%, 11/1/32 |
| 572,352 |
|
| LA Public Facs. Auth. Rev: |
|
|
500,000 |
| Series 1995-A (Glen Retirement Sys. Proj.), 6.50%, 12/1/15 |
| 500,580 |
750,000 |
| Ref. Series 2007-A2 (Tulane Univ. Proj.), variable rate, 2/15/36 |
| 532,500 |
1,025,000 |
| St. John Baptist Parish Rev. Series 2007-A (Marathon Oil Corp.), 5.125%, 6/1/37 |
| 899,540 |
1,164,245 |
| St. Tammany Parish Fin. Auth. Single Family Mtg. Rev. Series 2007-A (Home Ownership |
|
|
|
| Prog. Proj.) (GNMA/FNMA/FHLMC Backed Securities Proj.), 5.25%, 12/1/39 |
| 1,166,795 |
|
|
|
| |
|
|
|
| 12,863,822 |
|
|
|
| |
Maine (0.6%) |
|
| ||
1,000,000 |
| Skowhegan Pollution Ctrl. Rev. Ref. Series 1993 (Scott Paper Co. Proj.), 5.90%, 11/1/13 |
| 1,002,900 |
1,000,000 |
| South Berwick Educ. Rev. Series 1998 (Berwick Academy Issue), 5.25%, 8/1/13 |
| 1,012,720 |
|
|
|
| |
|
|
|
| 2,015,620 |
|
|
|
| |
Maryland (0.7%) |
|
| ||
500,000 |
| Annapolis Econ. Dev. Rev. Series 2007-B (St. Johns College Fac. Proj.), 5.00%, 10/1/27 |
| 464,450 |
200,000 |
| Howard Co. Retirement Cmnty. Rev. Ref. Series 2007-A (Vantage House Fac. Proj.), 4.50%, 4/1/10 |
| 196,890 |
310,000 |
| MD Economic Dev. Corp. Rev. Ref. Sr. Lien Series 2006-A (Chesapeake Bay Proj.), 4.75%, 12/1/11 |
| 308,335 |
1,150,000 |
| MD Hlth. & Hgr. Educ. Fac. Auth. Rev. Series 2007-B (King Farm Presbyterian Cmnty. Proj.), 4.75%, 1/1/13 |
| 1,116,386 |
|
|
|
| |
|
|
|
| 2,086,061 |
|
|
|
| |
|
|
|
|
|
Massachusetts (1.7%) |
|
| ||
250,000 |
| MA St. G.O. Series 2007-A (FGIC insured), variable rate, 5/1/37 |
| 180,000 |
2,000,000 |
| MA St. College Bldg. Auth. Proj. Rev. Series 1999-1 (MBIA Insured), 5.375%, 5/1/39 |
| 2,027,840 |
|
| MA Hlth. & Educ. Fac. Auth. Rev.: |
|
|
250,000 |
| Series 1993-E (South Shore Hosp. Proj.) (MBIA insured), 5.50%, 7/1/20 |
| 250,000 |
250,000 |
| Series 2001-E (Berkshire Hlth. Sys. Proj.), 5.70%, 10/1/25 |
| 256,033 |
See accompanying notes to portfolios of investments on page 58. 31
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| March 31, 2008 |
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| MA Dev. Fin. Agy. Rev.: |
|
|
200,000 |
| Series 2005 (Evergreen Ctr., Inc.), 4.00%, 1/1/09 |
| 199,872 |
500,000 |
| Series 2005-A (Curry College Proj.) (ACA Insured), 4.55%, 3/1/16 |
| 484,465 |
550,000 |
| Series 2007 (Orchard Cove Proj.), 5.00%, 10/1/17 |
| 517,061 |
|
| MA Indus. Fin. Agy. Rev. Series: |
|
|
600,000 |
| 1995 (St. Mark’s School Issue), 6.00%, 1/1/15 |
| 604,920 |
1,000,000 |
| 1997 (Trustees Deerfield Academy Proj.), 5.00%, 10/1/23 |
| 1,016,900 |
|
|
|
| |
|
|
|
| 5,537,091 |
|
|
|
| |
|
|
|
|
|
Michigan (2.5%) |
|
|
| |
|
| Chandler Park Academy Public School Rev. Series 2005: |
|
|
125,000 |
| 4.00%, 11/1/09 |
| 124,907 |
500,000 |
| 5.00%, 11/1/22 |
| 446,015 |
250,000 |
| Detroit School District G.O. Series 2003-B (School Bldg. & Site Impt. Proj.), 5.00%, 5/1/21 |
| 257,560 |
1,000,000 |
| Kent Hosp. Fin. Auth. Rev. Series 2005-A (Met Hosp. Proj.), 6.00%, 7/1/35 |
| 969,900 |
|
| Kentwood Econ. Dev. Ltd. Oblig. Series 2006-A (Holland Home Proj.): |
|
|
1,000,000 |
| 5.25%, 11/15/26 |
| 907,130 |
500,000 |
| 5.375%, 11/15/36 |
| 434,250 |
250,000 |
| Lincoln Park School Dist. G.O. Refunding Series 1998, 5.00%, 5/1/18 |
| 250,682 |
750,000 |
| MI Bldg. Auth. Rev. Series 2006, zero coupon, 4.79% effective yield, 10/15/21 |
| 365,513 |
|
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2006 (Black River School Proj.): |
|
|
115,000 |
| 5.125%, 9/1/11 |
| 116,612 |
250,000 |
| 5.50%, 9/1/19 |
| 237,583 |
500,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Series 2007 (Richfield Pub. Sch. Proj.), 5.00%, 9/1/22 |
| 446,400 |
650,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Bradford Proj.), 6.00%, 9/1/16 |
| 649,539 |
500,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Nataki Talibah Proj.), 6.25%, 10/1/23 |
| 481,770 |
500,000 |
| MI Hosp. Fin. Auth. Rev. Ref. Series 1998-A (Mclaren Hlth. Care Proj.) (MBIA-IBC insured), 5.00%, 6/1/28 |
| 494,955 |
500,000 |
| MI St. Univ. Gen. Rev. Series 2007-B (Ambac insured), variable rate, 2/15/37 |
| 360,000 |
250,000 |
| MI Tobacco Settlement Fin. Auth. Sr. Rev. Series 2007-A, 5.125%, 6/1/22 |
| 234,518 |
500,000 |
| Plymouth Educ. Ctr. Charter Schl. Academy Rev. Ref. Series 2005, 5.00%, 11/1/11 |
| 510,990 |
300,000 |
| Pontiac Tax Increment Fin. Auth. Rev. Ref. Series 2002 (Dev. Area 2 Proj.) (ACA insured), 5.625%, 6/1/22 |
| 288,783 |
500,000 |
| Saginaw Hosp Fin. Auth. Series 2000-F (Covenant Med. Ctr. Proj.), 6.50%, 7/1/30 |
| 528,845 |
|
|
|
| |
|
|
|
| 8,105,952 |
|
|
|
| |
|
|
|
|
|
Minnesota (1.8%) |
|
|
| |
740,000 |
| Hopkins Multifamily Hsg. Rev. Series 1996 (Hopkins Renaissance Proj.)(Section 8), 6.375%, 4/1/20 |
| 748,392 |
5,284,107 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 5.295%, 11/1/32 |
| 4,630,305 |
600,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Series 2006 (Nursing Home NTS-Episcopal Proj.), 5.63%, 10/1/33 |
| 522,684 |
|
|
|
| |
|
|
|
| 5,901,381 |
|
|
|
| |
|
|
|
|
|
Mississippi (0.7%) |
|
|
| |
|
| MS Dev. Bank Spl. Oblig. Rev. Ref.: |
|
|
325,000 |
| Series 1998 (Three Rivers Solid Waste Proj.), 5.125%, 7/1/14 |
| 325,169 |
1,000,000 |
| Series 2006-B (Magnolia Regl. Hlth. Ctr. Proj.), 5.00%, 10/1/13 |
| 1,047,590 |
|
| MS Home Corp. Single Fam. Mtg. Rev. (GNMA/FNMA/FHLMC supported): |
|
|
250,000 |
| Series 2007-C1, 5.60%, 6/1/38 |
| 264,320 |
500,000 |
| Series 2008-A1, 5.05%, 12/1/39 |
| 467,810 |
|
|
|
| |
|
|
|
| 2,104,889 |
|
|
|
|
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantiity ($) | Name of Issuer |
| Market Value ($)(1) | |
| Missouri (2.6%) |
|
|
| |
| 200,000 |
| Branson Cmnty. Park Impt. Dist. Spl. Assessment Rev. Series 2007-A, 5.00%, 6/1/10 |
| 202,648 |
| 80,000 |
| Cape Girardeau Co. Indl. Dev. Auth. Hlth. Care Fac. Rev. (Southwest MO Hosp. Assoc. Proj.) |
|
|
|
|
| Series 2002, 5.75%, 6/1/32 |
| 75,038 |
| 500,000 |
| Chillicothe Tax Increment Rev Series 2006 (South U.S. 65 Proj.), 5.625%, 4/1/27 |
| 448,640 |
| 500,000 |
| Gravois Bluffs Transn. Dev. Dist. Transn. Sales Tax Rev. Series 2007, 4.75%, 5/1/32 |
| 446,615 |
| 295,000 |
| Hannibal Indl. Dev. Auth. Tax Increment & Transn. Dev. Rev. Ref. & Impt. Series 2006 |
|
|
|
|
| (Stardust-Munger Proj.), 4.70%, 4/15/23 |
| 289,073 |
| 250,000 |
| Harrisonville Annual Approp. Tax. Rev. Ref. Series 2007 (Harrisonville Towne Ctr. Proj.), 4.625%, 11/1/28 |
| 221,545 |
| 300,000 |
| I470 & 350 Transportation Dev. Dist. Sales Tax. Rev. Ref. & Impt. Series 2007 (Radian insured), 4.60%, 6/1/29 |
| 291,552 |
| 1,000,000 |
| Joplin Indl. Dev. Auth. Rev. Ref. Series 2007-F (Christian Homes Inc. Proj.), 5.50%, 5/15/17 |
| 942,400 |
| 250,000 |
| Kansas City Tax Increment Fin. Comm. Rev. Series 2007-A (Maincor Proj.), 5.00%, 3/1/12 |
| 252,200 |
| 600,000 |
| Lincoln Univ. Auxiliary Sys. Rev. Subordinate Series 2007, 4.65%, 6/1/21 |
| 604,062 |
|
|
| Series 2007-E (Independence - Centerpoint Proj.): |
|
|
| 250,000 |
| 5.125%, 4/1/25 |
| 248,180 |
| 500,000 |
| 4.75%, 4/1/28 |
| 462,275 |
|
|
| MO Hlth. & Educ. Fac. Auth. Rev. Series: |
|
|
| 500,000 |
| 2005-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 5.375%, 2/1/35 |
| 470,575 |
| 500,000 |
| 2007-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 4.875%, 2/1/18 |
| 495,540 |
|
|
| MO Hlth. & Educ. Fac. Auth. Educ. Fac. Rev.: |
|
|
| 500,000 |
| 2007-A (Riverside Horizons Proj.) (ACA insured), 5.00%, 5/1/20 |
| 489,770 |
| 400,000 |
| 2007-B (Riverside Horizons Proj.) (ACA insured), 4.50%, 5/1/27 |
| 344,224 |
|
|
| St. Louis Indl. Dev. Auth. Sr. Living Facs. Rev.: |
|
|
| 250,000 |
| Series 2007-A (Friendship Vlg. West Proj.), 5.375%, 9/1/21 |
| 231,813 |
| 1,250,000 |
| Series 2007-B (St. Andrews Residence For Seniors Proj.), 5.375%, 12/1/27 |
| 1,230,000 |
| 480,000 |
| St. Louis Indl. Dev. Auth. Tax Allocation Rev. Series 2006 (Southtown Redev. Proj.), 5.125%, 5/1/26 |
| 419,846 |
| 275,000 |
| Univ. City Indl. Dev. Auth. Hsg. Rev. Ref. Series 1995-A (Canterbury Proj., 5.75%, 12/20/15 |
| 275,369 |
|
|
|
|
| |
|
|
|
|
| 8,441,365 |
|
|
|
|
| |
|
|
|
|
|
|
| Montana (0.5%) |
|
|
|
|
| 930,362 |
| MT Fac. Fin. Auth. Rev. Series 2005 (Great Falls Pre-Release Svcs. Proj.), 5.08%, 4/1/21 |
| 939,191 |
| 750,000 |
| MT Fac. Fin. Auth. Rev. Series 2007-C (St. Luke Cmnty. Healthcare Proj.), 5.00%, 1/1/22 |
| 751,523 |
|
|
|
|
| |
|
|
|
|
| 1,690,714 |
|
|
|
|
| |
|
|
|
|
|
|
| Nebraska (0.2%) |
|
|
|
|
| 220,000 |
| Douglas Co. San. & Impt. Dists. No. 375 G.O. Series 2003 (Walnut Ridge Proj.) , 5.30%, 12/15/23 |
| 221,639 |
| 500,000 |
| Mead Vlg. Tax Allocation Rev. Series 2006-A (E3 Biofuels - Mead LLC Proj.), 5.125%, 7/1/12 |
| 456,010 |
|
|
|
|
| |
|
|
|
|
| 677,649 |
|
|
|
|
| |
|
|
|
|
|
|
| Nevada (1.1%) |
|
|
|
|
| 250,000 |
| Clark Co. Econ. Dev. Rev. Series 2003 (Alexander Dawson Sch. Proj.), 5.375%, 5/15/33 |
| 245,422 |
| 1,000,000 |
| Clark Co. Poll. Ctrl. Rev. Ref. Series 1995-D (Nev. Pwr. Co. Proj.) (ACA-CBI Insured), 5.30%, 10/1/11 |
| 963,270 |
| 415,000 |
| Clark Co. Impt. Spl. Assmt. Series 2007-A (Summerlin Proj.), 4.85%, 2/1/17 |
| 382,717 |
| 600,000 |
| Las Vegas Paiute Tribe Rev. Series 2002A (ACA insured), 6.625%, 11/1/17 |
| 626,388 |
| 315,000 |
| North Las Vegas LOC Impt. Spl. Assessment Ref. Sub. Spl. Series 2006-B (Impt. Dist. No. 60), 4.50%, 12/1/10 |
| 312,178 |
| 110,000 |
| NV Hsg. Dev. SF Mtg. Program Mezzanine Series 1998B-1, 5.30%, 4/1/16 |
| 111,746 |
|
|
| Reno Hosp. Rev. Series 2007-A (Renown Regl. Med. Ctr. Proj.): |
|
|
| 500,000 |
| 5.00%, 6/1/22 |
| 483,700 |
| 500,000 |
| 5.25%, 6/1/32 |
| 465,065 |
|
|
|
|
| |
|
|
|
|
| 3,590,486 |
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. 33
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
New Hampshire (1.3%) |
|
| ||
|
| Manchester Hsg. & Redev. Auth. Rev.: |
|
|
300,000 |
| Series 2000-B (Radian insured) zero coupon, 5.25% effective yield, 1/1/19 |
| 160,902 |
890,000 |
| Series 2000-A (ACA insured), 6.75%, 1/1/15 |
| 916,762 |
|
| NH Hlth. & Educ. Fac. Auth. Rev.: |
|
|
450,000 |
| Series 2004 (Covenant Hlth. Proj.), 5.00%, 7/1/14 |
| 470,588 |
485,000 |
| Series 2006 (The Memorial Hosp. Proj.), 5.25%, 6/1/16 |
| 489,127 |
565,000 |
| Series 2006-A (Havenwood-Heritage Heights Proj.), 5.00%, 1/1/16 |
| 514,303 |
|
| NH Hlth. & Educ. Facs. Auth. Hosp. Rev. Series 2004 (Speare Mem. Hosp. Proj.): |
|
|
255,000 |
| 5.00%, 7/1/10 |
| 259,924 |
500,000 |
| 5.00%, 7/1/16 |
| 495,965 |
690,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1997 (Catholic Charities Proj.), 5.75%, 8/1/12 |
| 699,922 |
135,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1998 (New Hampton School), 5.00%, 10/1/08 |
| 135,922 |
|
|
|
| |
|
|
|
| 4,143,415 |
|
|
|
| |
New Jersey (0.3%) |
|
| ||
|
| NJ Hlth. Care Facs. Fin. Auth. Rev.: |
|
|
365,000 |
| Series 1997 (Capital Health Sys. Proj.), 5.125%, 7/1/12 |
| 370,355 |
250,000 |
| Series 2002 (Englewood Hosp. Proj.) (FHA insured), 5.00%, 2/1/21 |
| 254,070 |
495,000 |
| Series 2007-E (Catholic Hlth. East Issue Proj.), variable rate, 11/15/33 |
| 346,500 |
|
|
|
|
|
|
|
|
| |
|
|
|
| 970,925 |
|
|
|
| |
New Mexico (0.6%) |
|
| ||
|
| Farmington Pollution Ctl. Rev. Ref. (Pub. Svc. Co. San Juan Proj.): |
|
|
250,000 |
| Series 1996-B, 6.30%, 12/1/16 |
| 250,538 |
1,000,000 |
| Series 1996-C, 5.70%, 12/1/16 |
| 1,012,380 |
560,000 |
| NM MFA Forward Mortgage-Backed Series 1995-E (GNMA collateralized), 6.95%, 1/1/26 |
| 569,576 |
250,000 |
| NM State Hosp. Equip. Ln. Council Hosp. Rev. Ref. Series 2007-A (Rehoboth Proj.), 5.00%, 8/15/17 |
| 225,105 |
|
|
|
| |
|
|
|
| 2,057,599 |
|
|
|
| |
New York (1.8%) |
|
| ||
250,000 |
| Albany Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A (Brighter Choice Charter Sch. Proj.), 5.00%, 4/1/20 |
| 231,047 |
500,000 |
| Amherst Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (Beechwood Hlth. Care Ctr. Inc. Proj.), 4.875%, 1/1/13 |
| 481,555 |
500,000 |
| Genesee Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (United Mem. Med. Ctr. Proj.), 4.75%, 12/1/14 |
| 466,815 |
275,000 |
| Madison Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (Oneida Hlth. Sys., Inc. Proj.), 4.50%, 2/1/17 |
| 261,300 |
1,230,000 |
| NY Dorm Auth. Rev. Series 1996-A (Maimonides Med. Ctr. Proj.), 5.75%, 8/1/24 |
| 1,231,611 |
650,000 |
| NY Dorm Auth. Debt Rev. Series 2007-B (N Shore Proj.), variable rate, 5/1/33 |
| 455,000 |
170,000 |
| NY Cos. Tobacco Trust IV Settlement Pass-Thru Rev. Series 2005-A, 4.25%, 6/1/21 |
| 158,234 |
1,060,000 |
| NY Tobacco Settlement Fing. Corp Asset-Backed Rev. Series 2003-C1, 5.00%, 6/1/11 |
| 1,061,304 |
250,000 |
| Seneca Nation Indians Cap. Impt. Auth. Spl. Oblig. Rev. Series 2007-A, 5.00%, 12/1/23 |
| 219,498 |
|
| Ulster Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A: |
|
|
500,000 |
| 5.10%, 9/15/13 |
| 487,775 |
650,000 |
| 5.25%, 9/15/16 |
| 610,428 |
|
|
|
| |
|
|
|
| 5,664,567 |
|
|
|
| |
North Carolina (1.1%) |
|
| ||
400,000 |
| Albemarle Hosp. Auth. Healthcare Fac. Rev. Ref. Series 2007, 5.25%, 10/1/21 |
| 389,816 |
375,000 |
| Asheville Certificates of Participation Series 1997-A, 5.125%, 6/1/18 |
| 379,117 |
105,000 |
| Mecklenburg Co. Indus. Facs. & Pollution Ctrl. Fin. Auth. Rev. Series 1993 (Fluor Corp. Proj.), 5.25%, 12/1/09 |
| 105,202 |
250,000 |
| NC Med. Care Commission Retirement Facs. Rev. Ref. Series 2007 (Brookwood Proj.), 5.25%, 1/1/32 |
| 201,780 |
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| NC Med. Care. Commission Hlth. Care Facs. Rev.: |
|
|
150,000 |
| Series 1998-B (Novant Hlth. Proj.), 5.00%, 10/1/28 |
| 150,069 |
525,000 |
| Ref. Series 2005-B (Presbyterian Proj.), 4.90%, 7/1/31 |
| 521,698 |
|
| NC Med. Care Commission Hlth. Care Hsg. Rev. Series 2004-A: |
|
|
500,000 |
| (The ARC of NC Proj.), 4.65%, 10/1/14 |
| 505,310 |
700,000 |
| (ARC Proj.), 5.80%, 10/1/34 |
| 669,921 |
370,000 |
| NC Med. Care Commission Rev. Series 2003 (FHA Insd. Mtg.-Betsy Johnson Proj.) |
|
|
|
| (FSA insured), 5.375%, 10/1/24 |
| 383,775 |
175,000 |
| Northern Hosp. Dist. Surry. Co. Hlth. Care Facs. Rev. Series 1999, 5.50%, 10/1/19 |
| 177,553 |
|
|
|
| |
|
|
|
| 3,484,241 |
|
|
|
| |
North Dakota (0.5%) |
|
| ||
750,000 |
| City of Washburn Series 2007-B (Bismarck State College Fdtn.), 5.01%, 4/1/32 |
| 724,433 |
|
| Grand Forks Sr. Hsr. Rev. Ref. Series 2006 (4000 VY Square Proj.): |
|
|
260,000 |
| 4.50%, 12/1/08 |
| 258,370 |
395,000 |
| 4.60%, 12/1/10 |
| 386,705 |
175,000 |
| Williams Co. Sales Tax Rev. Series 2006, 5.00%, 11/1/31 |
| 153,059 |
|
|
|
| |
|
|
|
| 1,522,567 |
|
|
|
| |
Northern Mariana Islands (0.1%) |
|
| ||
500,000 |
| Northern Mariana Islands Commonwealth G.O. Ref. Series 2007-B, 5.00%, 10/1/22 |
| 449,790 |
|
|
|
| |
Ohio (2.1%) |
|
| ||
330,000 |
| Blue Ash Tax Allocation Rev. Series 2006 (Duke Realty Ohio Proj.), 5.00%, 12/1/21 |
| 325,195 |
500,000 |
| Buckeye Tobacco Settlement Fin. Auth. Asset-Backed Sr. Rev. Series 2007-A2, 5.125%, 6/1/24 |
| 466,350 |
295,000 |
| Cleveland-Cuyahoga Port. Auth. Dev. Rev. Series 1999-A (Port of Cleveland Bond Fund Capital Imprv. Proj.), 5.375%, 5/15/19 |
| 288,109 |
|
| Cleveland-Cuyahoga Co. Port. Auth. Dev. Rev. : |
|
|
700,000 |
| Series 2004-D (Garfield Heights Proj.), 5.25%, 5/15/23 |
| 650,209 |
610,000 |
| Series 2004-E (Meyers Univ. Proj.), 4.65%, 5/15/14 |
| 600,722 |
530,000 |
| Series 2004-E (Meyers Univ. Proj.), 5.60%, 5/15/25 |
| 509,107 |
270,000 |
| Series 2005-B (Fairmount Proj.), 5.125%, 5/15/25 |
| 240,276 |
750,000 |
| Series 2006-A (Sr. Hsg. - St. Clarence - Geac Proj.), 6.00%, 5/1/21 |
| 714,705 |
1,500,000 |
| Hamilton Co. Hlth. Care Rev. Ref. Series 2006-A (Life Enriching Cmntys. Proj.), 5.00%, 1/1/27 |
| 1,384,755 |
805,000 |
| Lorain Co. Hosp. Rev. Series 1997-B (Catholic Hlth.Care Partners Proj.) (MBIA insured), 5.50%, 9/1/27 |
| 818,991 |
500,000 |
| Miami Co. Hosp. Fac. Rev. Ref. Impt. Series 2006 (Upper Valley Med. Ctr. Proj.), 5.25%, 5/15/17 |
| 512,590 |
250,000 |
| Toldeo-Lucas Co. Port Auth. Spl. Assessment Rev. Series 2003 (Crocker Park), 5.38%, 12/1/35 |
| 227,758 |
|
|
|
| |
|
|
|
| 6,738,767 |
|
|
|
| |
Oklahoma (1.6%) |
|
| ||
500,000 |
| Atoka Co. Health Care Auth. Hosp. Rev. Series 2007 (Atoka Mem. Hosp. Proj.), 5.875%, 10/1/18 |
| 473,215 |
|
| Citizen Potawatomi Nation Tax Rev. Series 2004-A: |
|
|
660,000 |
| 5.00%, 9/1/08 |
| 662,363 |
500,000 |
| 6.50%, 9/1/16 |
| 518,155 |
250,000 |
| Langston Econ. Dev. Auth. Rev. Series 2005-A (Langston Univ. Proj.) (ACA insured), 5.00%, 5/1/35 |
| 207,452 |
500,000 |
| Norman Regl. Hosp. Auth. Rev. Series 2005, 5.50%, 9/1/24 |
| 481,155 |
915,000 |
| Oklahoma St. Ind. Auth Rev. Series 2006 (YMCA Greater OK Earlywine Proj.), 4.875%, 7/1/22 |
| 809,610 |
400,000 |
| Valley View Hosp. Auth. Rev. Ref. Series 1996, 6.00%, 8/15/14 |
| 421,200 |
960,000 |
| Washington Co. Med. Auth. Rev. Bartlesville Ref. Series 1996 (Jane Phillips Med. Ctr. Proj.) (Connie Lee insured), 5.50%, 11/1/10 |
| 966,950 |
500,000 |
| Weatherford Hosp. Auth. Rev. Series 2006, 6.00%, 5/1/16 |
| 486,885 |
|
|
|
| |
|
|
|
| 5,026,985 |
|
|
|
|
See accompanying notes to portfolios of investments on page 58. 35
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Oregon (0.5%) |
|
| ||
200,000 |
| Cow Creek Band Umpqua Tribe of Indians Rev. Series 2006-C, 4.875%, 10/1/08 |
| 199,012 |
250,000 |
| OR G.O. Series 2001-81 (Veterans Welfare Proj.), 5.25%, 10/1/42 |
| 245,043 |
85,000 |
| OR Hsg. & Cmty. Svcs. Dept. Mtg. Rev. Series 2000-K, 5.70%, 7/1/22 |
| 86,010 |
1,245,000 |
| Western Generation Agy. Sub. Lien Rev. Series 2006-C (Wauna Cogeneration Proj.), 5.00%, 1/1/21 |
| 1,116,566 |
|
|
|
| |
|
|
|
| 1,646,631 |
|
|
|
| |
Pennsylvania (5.2%) |
| |||
|
| Allegheny Co. Hosp. Dev. Auth. Rev. Series 2003-A (Ohio Valley Gen. Hosp. Proj.): |
|
|
245,000 |
| 3.30%, 4/1/08 |
| 245,000 |
135,000 |
| 3.875%, 4/1/10 |
| 134,410 |
495,000 |
| Butler Co. Gen. Auth. Rev. Series 2007 (Butler Area Sch. Dist. Proj.), variable rate, 10/1/34 |
| 376,200 |
565,000 |
| Chartiers Valley Indl. & Commercial Dev. Auth. Rev. Ref. Series 2003-A |
|
|
|
| (Friendship Village South Proj.), 4.75%, 8/15/11 |
| 572,938 |
555,000 |
| Erie Auth. Pkg. Fac. Rev. Series 2006, 4.60%, 9/1/21 |
| 524,125 |
500,000 |
| Harrisburg Auth. Univ. Rev. Series 2007-A (Harrisburg Univ of Science Proj.), 5.40%, 9/1/16 |
| 499,975 |
600,000 |
| Geisinger Auth. Hlth. Sys. Rev. Series 2007 (Geisinger Hlth. Sys. Proj.), variable rate, 5/1/37 |
| 438,000 |
2,330,000 |
| Grove City Area Hosp. Auth. Rev. Series 1998 (United Cmnty. Hosp. Proj.), 5.25%, 7/1/12 |
| 2,332,283 |
|
| Lancaster Co. Hosp. Auth. Rev.: |
|
|
200,000 |
| Series 1994 (Hlth. Center-Masonic Homes Proj.), 5.30%, 11/15/08 |
| 200,330 |
250,000 |
| Series 2006 (Hlth. Center-Masonic Homes Proj.), 5.00%, 11/1/26 |
| 241,190 |
|
| Series 2008-A (Brethren Village Proj.): |
|
|
500,000 |
| 5.20%, 7/1/12 |
| 506,380 |
500,000 |
| 6.10%, 7/1/22 |
| 489,430 |
250,000 |
| Lehigh Co. General Purpose Auth. Rev. Rev. Series 2007 (Saint Luke’s Bethlehem Proj.), variable rate, 8/15/42 |
| 157,500 |
1,575,000 |
| Montgomery Co. Indus. Dev. Auth. Retirement Cmnty. Rev. Series 1998, 5.25%, 11/15/28 |
| 1,500,566 |
500,000 |
| Northeastern PA Hosp. & Educ. Auth. College Rev. Series 1997 (Luzerne Co. Cmnty. Coll. Proj.) |
|
|
|
| (MBIA insured), 5.15%, 8/15/16 |
| 500,880 |
365,000 |
| PA Econ. Dev. Fin. Auth. Rev. Series 1998-A (Northwestern Human Svcs. Proj.) (ACA insured), |
|
|
|
| 4.875%, 6/1/08 |
| 365,128 |
3,890,000 |
| PA Hgr. Educ. Fac. Auth. Hlth. Svcs. Rev. Series 1996-A (Allegheny Delaware Valley |
|
|
|
| Obligated Group, Inc.) (MBIA insured), 5.875%, 11/15/16 |
| 3,888,405 |
|
| PA Higher Educ. Fac. Auth. Rev.: |
|
|
295,000 |
| Series 1997-O (MBIA insured), 5.125%, 6/15/24 |
| 295,448 |
190,000 |
| Unrefunded Balance Series 1998 (Temple Univ. Proj.), 5.00%, 4/1/21 |
| 192,065 |
800,000 |
| Series 2000 (Univ. of the Arts Proj.) (Radian insured), 5.75%, 3/15/30 |
| 804,808 |
190,000 |
| Series 2005 (Widener Univ. Proj.), 3.10%, 7/15/08 |
| 189,776 |
370,000 |
| Series 2006-FF2 (Assn. Indpt. Colleges & Univ. Proj.) (Radian insured), 5.00%, 12/15/24 |
| 360,206 |
500,000 |
| Ref. Series 2007 (Philadelphia Univ. Proj.), 5.00%, 6/1/22 |
| 483,220 |
|
| Philadelphia Hosp. & Hgr. Educ. Fac. Auth. Hosp. Rev.: |
|
|
275,000 |
| Series 1993-A (Temple Univ. Hosp. Proj.), 6.50%, 11/15/08 |
| 279,645 |
250,000 |
| Series 1997-A (FHA insured), 5.30%, 1/1/18 |
| 254,755 |
700,000 |
| Potter Co. Hosp. Auth. Rev. Series 1996 (Charles Cole Mem. Hosp. Proj.) (Radian insured), 5.95%, 8/1/16 |
| 702,765 |
25,000 |
| South Fork Municipal Auth. Hosp. Rev. Series 1998-B (Conemaugh Valley Mem. Hosp. Proj.), 5.375%, 7/1/22 |
| 25,328 |
200,000 |
| Washington Co. Auth. Rev. Series 1999, 6.15%, 12/1/29 |
| 199,742 |
|
|
|
| |
|
|
|
| 16,760,498 |
|
|
|
| |
Puerto Rico (0.3%) |
| |||
500,000 |
| Puerto RicoElec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 |
| 350,000 |
500,000 |
| Puerto Rico Commonwealth Hwy. & Transportation Auth. Rev. Ref. Series 2007-N, variable rate, 7/1/45 |
| 350,000 |
500,000 |
| Puerto Rico Sales Tax. Fin. Corp. Rev. Series 2007-A, variable rate, 8/1/57 |
| 355,000 |
|
|
|
| |
|
|
|
| 1,055,000 |
|
|
|
|
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Rhode Island (0.3%) |
|
| ||
260,000 |
| RI Clean Water Protection Fin. Agy. Pooled Lien Rev. Series 1995A (MBIA insured), 5.375%, 10/1/15 |
| 260,549 |
|
| RI Hlth. & Educ. Bldg. Corp. Rev. Series: |
|
|
250,000 |
| 1996 (Lifespan Oblig. Group Proj.), 5.25%, 5/15/26 |
| 250,768 |
565,000 |
| 1997 (Steere House Proj.), 5.80%, 7/1/20 |
| 535,626 |
|
|
|
| |
|
|
|
| 1,046,943 |
|
|
|
| |
South Carolina (2.4%) |
|
| ||
|
| Berkeley Co. Sch. Dist. Intallment Lease (Securing Assets For Education Proj.): |
|
|
500,000 |
| Series 2003, 5.25%, 12/1/19 |
| 508,040 |
1,250,000 |
| Series 2003, 5.25%, 12/1/20 |
| 1,264,550 |
1,000,000 |
| Series 2006, 5.00%, 12/1/20 |
| 999,000 |
400,000 |
| Charleston Educ. Excellence Fin. Corp. Rev. Series 2005 (Charleston Co. Schl. Dist. Proj.), 5.25%, 12/1/20 |
| 414,284 |
60,000 |
| Greenville Hosp. Sys. Hosp. Fac. Rev. Series 2001, 5.00%, 5/1/31 |
| 58,632 |
1,500,000 |
| Kershaw Co. Public Sch. Fdn. Installment Pwr. Rev. Series 2006 (Kershaw Co. Sch. Dist. Proj.) |
|
|
|
| (CIFG insured), 5.00%, 12/1/25 |
| 1,432,125 |
500,000 |
| Lee Co. Sch. Facs. Inc. Installment Purchase Rev. Series 2007 (Radian insured), 6.00%, 12/1/31 |
| 515,860 |
|
| SC Jobs Econ. Dev. Auth. Hosp. Fac. Rev. Ref. & Impt. Series 2006 (Hampton Regl. Med. Proj.): |
|
|
390,000 |
| 4.60%, 11/1/09 |
| 381,677 |
735,000 |
| 4.65%, 11/1/11 |
| 701,344 |
885,000 |
| SC Jobs Econ. Dev. Auth. Hlth. Care Fac. Rev. Ref. Series 2007 (Lutheran Homes Proj.), 4.875%, 5/1/10 |
| 879,177 |
|
| SC Jobs Econ. Dev. Auth. Hlth. Care Fac. Rev. (Woodlands at Furman Proj.): |
|
|
500,000 |
| Series 2007-A, 6.00%, 11/15/27 |
| 462,050 |
250,000 |
| Series 2007-B, 5.15%, 11/15/42 |
| 244,663 |
|
|
|
| |
|
|
|
| 7,861,402 |
|
|
|
| |
South Dakota (0.3%) |
|
| ||
|
| SD Hlth. & Educ. Fac. Auth. Rev.: |
|
|
125,000 |
| Ref. Series 2006 (Huron Regional Med. Ctr. Proj.), 4.25%, 4/1/08 |
| 125,000 |
410,000 |
| Series 2006 (Westhills Village Retirement Community), 5.00%, 9/1/19 |
| 405,769 |
500,000 |
| Series 2004-A (Sioux Valley Hosp. & Hlth.), 5.25%, 11/1/34 |
| 478,585 |
|
|
|
| |
|
|
|
| 1,009,354 |
|
|
|
| |
Tennessee (1.5%) |
|
| ||
500,000 |
| Blount Co. Hlth. & Educ. Fac. Brd. Rev. Ref. Series 2007-A (Asbury Inc. Proj.), 4.75%, 4/1/12 |
| 477,980 |
500,000 |
| Metro Govt. Nashville & Davidson Co. Hlth. & Educ. Facs. Brd. Multifamily Hsg. Rev. |
|
|
|
| Series 2005-A (Prestige Proj.), 7.50%, 12/20/40 |
| 458,255 |
240,000 |
| Metro Govt. Nashville & Davidson Co. Indus. Dev. Brd. Rev. Ref. |
|
|
|
| Series 2001-A (GNMA collateralized), 6.625%, 3/20/36 |
| 254,040 |
|
| 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) |
| 554,297 |
7,875,000 |
| Senior Series 1998-A, 5.55%, 1/1/29 (7) (8) |
| 2,278,946 |
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) |
| 382,960 |
405,000 |
| Subordinate Series 1995-C, 7.50%, 9/1/25 (7) (8) |
| 4 |
500,000 |
| Series 2006-A (Trezevant Manor Proj.), 4.90%, 9/1/11 |
| 491,115 |
|
|
|
| |
|
|
|
| 4,897,613 |
|
|
|
|
See accompanying notes to portfolios of investments on page 58. 37
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Texas (9.5%) |
|
|
|
|
400,000 |
| Austin Convention Enterprises, Inc. (Convention Ctr.) Rev. Ref. Series 2006-B, 6.00%, 1/1/10 |
| 411,452 |
|
| Austin Utilities System Rev. Ref.: |
|
|
20,000 |
| Series 1993 (MBIA insured), 5.25%, 5/15/18 |
| 20,022 |
150,000 |
| Series 1997, 5.125%, 11/15/13 |
| 150,300 |
|
| Bexar Co. HFC Multifamily Hsg. Rev.: |
|
|
560,000 |
| Subordinated Series 2000-C (Honey Creek Apts. Proj.), 8.00%, 4/1/30 |
| 480,329 |
300,000 |
| Ref. Series 2001-A (Nob Hill Apartments Proj.), 5.50%, 6/1/11 |
| 278,634 |
130,000 |
| Subordinated Series 2001-B (American Oppty. Hsg. Dublin Kingswood & Waterford Apts. Proj.), 7.50%, 12/1/14 |
| 130,395 |
1,000,000 |
| Series 2001-A-1 (Stablewood Farms Proj.) (GNMA Insured), 6.25%, 7/20/43 |
| 1,043,180 |
440,000 |
| Series 2001-A-1 (American Opportunity -Waterford Proj.), 6.50%, 12/1/21 |
| 450,604 |
440,000 |
| Bexar Co. Rev. Series 2000 (Venue Proj.)(MBIA insured), 5.75%, 8/15/22 |
| 464,354 |
500,000 |
| Brazos Co. Hlth. Fac. Dev. Corp. Franciscan Svcs. Corp. Series 2002, 5.38%, 1/1/32 |
| 478,320 |
500,000 |
| Brazos River Hbr. Nav. Dist Rev. Series 2002-B-2 (Dow Chemical Co. Proj.), 4.75%, 5/15/33 |
| 429,970 |
750,000 |
| Cameron Educ. Corp. Rev. Series 2006-A (Faith Family Academy Proj.) (ACA Insured), 5.00%, 8/15/21 |
| 669,570 |
115,000 |
| Dallas Area Rapid Transit Rev. Sr. Lien Unrefunded Balance Series 2001 (Ambac insured), 5.00%, 12/1/26 |
| 115,873 |
6,055,000 |
| Dallas HFC Multifamily Mtg. Rev. Series 1998-A (GNMA collateralized) (Towne Ctr. Apts.), 6.75%, 10/20/32 |
| 6,352,119 |
150,000 |
| Fort Bend Co. Municipal Util. Dist. No. 106 G.O. Series 1999 (Radian insured), 5.30%, 9/1/10 |
| 150,228 |
500,000 |
| Galveston Co. Hlth. Fac. Dev. Corp. Rev. Series 1995 (Devereux Foundation Proj.) |
|
|
|
| (MBIA insured), 5.00%, 11/1/14 |
| 500,815 |
1,100,000 |
| Galveston Co. Municipal Util. Dist. No. 52 Series 2007-A, 6.00%, 8/13/08 |
| 1,116,467 |
500,000 |
| Garza Co. Public Hlth. Fac. Corp. Rev. Series 2006, 5.50%, 10/1/16 |
| 510,200 |
100,000 |
| Harris Co. Spl. Rev. Sr. Lien Series 1998-A (Houston Sports Auth. Proj.), 5.00%, 11/15/28 |
| 98,979 |
500,000 |
| Harris Co. Municipal Util. Dist. No. 360 G.O. Series 1998 (FSA Insured), 4.875%, 12/1/23 |
| 500,420 |
|
| Harris Co. Hlth. Fac. Dev. Corp. Hosp. Rev.: |
|
|
750,000 |
| Series 1998 (Hermann Hosp. Sys. Proj.), 5.00%, 6/1/18 |
| 761,340 |
310,000 |
| Series 1998 (Hermann Hosp. Sys. Proj.), (FSA insured), 5.25%, 6/1/27 |
| 314,814 |
500,000 |
| Series 2008 (Teco Proj.) (Assured Gty.), 5.00%, 11/15/32 |
| 488,210 |
700,000 |
| Hidalgo Co. Hlth. Svcs. Rev. Series 2005 (Mission Hosp., Inc. Proj.), 5.00%, 8/15/19 |
| 661,038 |
100,000 |
| Houston Airport Sys. Rev. Sub. Lien Rev. Series 1998-C, 5.00%, 7/1/28 |
| 96,054 |
750,000 |
| Houston Cmnty. College G.O. Ref. Series 2005, 5.00%, 2/15/12 |
| 755,947 |
655,000 |
| Kerrville Hlth. Fac. Dev. Corp. Hosp. Rev. Series 2005 (Sid Peterson Memorial Hosp. Proj.), 4.125%, 8/15/10 |
| 655,779 |
500,000 |
| La Vernia Higher Educ. Fin. Corp. Rev. Series 2008 (Friends Life Proj.), 6.00%, 2/15/18 |
| 496,655 |
750,000 |
| Lewisville Combination Contract Impt. Rev. Series 2008, 6.75%, 10/1/32 |
| 730,830 |
31,641 |
| Midland HFC Single Family Mtg. Rev. Ref. Series 1992 A-2, 8.45%, 12/1/11 |
| 32,398 |
750,000 |
| Mesquite Hlth. Fac. Dev. Corp. Retirement Fac. Rev. (Christian Care Ctr. Proj.) Series 2005, 5.00%, 2/15/15 |
| 741,383 |
500,000 |
| North Central Hlth. Fac. Dev. Corp. Rev. Ref. Series 1998 (Baylor Hlth Care Sys. Proj.), 5.00%, 5/15/17 |
| 509,290 |
250,000 |
| North TX Hlth. Facs. Dev. Corp. Hosp. Rev. Series 1997 (UTD Regl. Hlth. Care Sys. Inc. Proj.), 5.00%, 9/1/14 |
| 252,740 |
1,000,000 |
| North TX Twy. Auth. Cap. Apprec. Rev. Ref. Series 2008-D, zero coupon, 5.90% effective yield, |
| 336,590 |
|
| Richardson Hosp. Auth. Rev. Ref. Series 1998 (Baylor/Richardson Proj.): |
|
|
610,000 |
| 5.50%, 12/1/18 |
| 611,299 |
1,175,000 |
| 5.625%, 12/1/28 |
| 1,115,110 |
250,000 |
| San Leanna Educ. Fac. Corp. Rev. Ref. Series 2007 (Saint Edwards Univ. Proj.), 5.00%, 6/1/20 |
| 246,845 |
350,000 |
| Sendero I Pub. Fac. Corp. Multifamily Hsg. Rev. Series 2003-A (Crown Meadows Proj.), 5.00%, 6/1/23 |
| 351,859 |
|
| Tarrant Co. Cultural Educ. Facs. Fin. Corp. Retirement Fac. Rev. Series 2007: |
|
|
|
| (C.C. Young Mem. Hom. Proj.): |
|
|
300,000 |
| 4.85%, 2/15/09 |
| 297,405 |
300,000 |
| 5.00%, 2/15/13 |
| 286,734 |
250,000 |
| (Buckingham Sr. Living Cmnty. Inc. Proj.), 5.25%, 11/15/16 |
| 228,980 |
490,000 |
| Tarrant Co. HFC Multifamily Hsg. Rev. Subordinate Seroes 2001-C |
|
|
|
| (Crossroads Apt. Proj.), 7.25%, 12/1/36 (7) (8) |
| 4,900 |
38
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| TX Affordable Hsg. Corp. Multifamily Hsg. Rev: |
|
|
605,000 |
| Senior Series 2001-A (NHT / GTEX Proj.)(MBIA insured), 4.10%, 10/1/08 |
| 607,837 |
740,000 |
| Junior Series 2001-B (NHT / GTEX Proj.), 6.75%, 10/1/16 (7) (8) |
| 74,681 |
|
| TX Municipal Gas Acq. & Supply Corp. I Gas Supply Sub. Lien Rev.: |
|
|
250,000 |
| Series 2006-B, variable rate, 12/15/26 |
| 160,000 |
500,000 |
| Series 2006-C, variable rate, 12/15/26 |
| 379,545 |
300,000 |
| TX Municipal Gas Acq. & Supply Corp. II Gas Supply Rev. Series 2007, variable rate, 9/15/27 |
| 216,000 |
250,000 |
| TX Public Property Fin. Corp. Mental Hlth. & Mental Retardation Rev. Series 1996, 6.20%, 9/1/16 |
| 251,325 |
175,000 |
| TX St. Student Hsg. Corp. Rev. Series 2002 (Midwestern St. Univ. Proj.), 5.50%, 9/1/12 |
| 178,075 |
|
| TX Pub. Fin. Auth. Charter Sch. Fin. Corp. Rev.: |
|
|
1,000,000 |
| Series 2006-A (Kipp Inc. Proj.) (ACA Insured), 5.00%, 2/15/28 |
| 847,610 |
750,000 |
| Series 2006-A (Ed-Burnham Wood Proj.), 5.50%, 9/1/18 |
| 724,598 |
835,000 |
| Travis Co. Hlth. Facs. Dev. Corp. Retirement Fac. Rev. Series 2005 |
|
|
|
| (Querencia Barton Creek Proj.), 4.90%, 11/15/13 |
| 799,863 |
|
| Tyler Hlth. Facs. Dev. Corp.: |
|
|
750,000 |
| Hosp. Rev. Series 1992 (Mother Frances Hosp. Proj.) (FGIC insured), 6.60%, 7/1/09 |
| 757,238 |
350,000 |
| Rev. Ref. & Impt. Series 2007-A (East TX Med Ctr. Proj.), 5.375%, 11/1/37 |
| 300,976 |
2,050,000 |
| White Settlement Ind. Sch. Dist. G.O. Series 2008, zero coupon, 5.80% effective yield, 8/15/28 |
| 637,837 |
750,000 |
| Whitehouse TX Indpt. Sch. Dist. Cap. Apprec. G.O. Ref. Series 2007 (Sch. Building Proj.), zero coupon, 4.65% effective yield, 2/15/25 |
| 290,843 |
|
|
|
| |
|
|
|
| 30,554,859 |
|
|
|
| |
Utah (0.6%) |
|
|
|
|
250,000 |
| Murray City Hosp. Rev. Ref. Series 1996 (IHC Hlth. Svcs. Inc. Proj.) (MBIA insured), 5.00%, 5/15/22 |
| 250,015 |
250,000 |
| Provo Charter Sch. Rev. Series 2007 (Freedom Academy Fdtn. Proj.), 5.50%, 6/15/37 |
| 207,050 |
857,000 |
| UT Assoc. Muni. Pwr. Sys. Rev Series 2007-A, 5.00%, 5/1/27 |
| 764,821 |
290,000 |
| UT Charter Sch. Fin. Auth. Rev. Series 2007-A (Summit Academy Proj.), 5.125%, 6/15/17 |
| 282,100 |
240,000 |
| UT Hsg. Finance Agy. Multifamily Rev. Ref. Series 1996-A (Section 8) |
|
|
|
| (FHA insured), 6.10%, 7/1/22 |
| 242,028 |
|
|
|
| |
|
|
|
| 1,746,014 |
|
|
|
| |
Vermont (0.1%) |
|
|
|
|
400,000 |
| VT Educ. & Hlth. Bldgs. Financing Agency Rev. Series 2003-A |
|
|
|
| (Vermont Law School Proj.), 5.00%, 1/1/13 |
| 410,660 |
|
|
|
| |
Virginia (1.2%) |
|
|
|
|
415,000 |
| Alexandria Indl. Dev. Auth. Rev. Pollution Control Ref. Series 1994 (Potomac Electric Proj.) (MBIA insured), 5.375%, 2/15/24 |
| 415,490 |
250,000 |
| Chesterfield Co. Indl. Dev. Auth. Pollution Ctrl. Rev. Series 1987-A Rmktg. |
|
|
|
| (VA Elec. & Power Co. Proj.), 5.875%, 6/1/17 |
| 263,997 |
1,000,000 |
| Farms New Kent Cmnty. Dev. Auth. Spl. Assmt. Series 2006-A, 5.125%, 3/1/36 |
| 689,060 |
100,000 |
| Prince William Co. Indus. Dev. Auth. Educ. Fac. Rev. Series 2003 (Catholic Diocese Arlington): 5.00%, 10/1/18 |
| 102,057 |
400,000 |
| Suffolk Indl. Dev. Auth. Retirement Facs. Rev. Ref. Series 2006 (Lake Prince Ctr. Proj.), 4.625%, 9/1/11 |
| 398,212 |
2,000,000 |
| Virginia St. Hsg. Dev. Auth. Comwlth. Mtg. Rev. Series 2001-H1 (MBIA insured), 5.375%, 7/1/36 |
| 1,979,740 |
|
|
|
| |
|
|
|
| 3,848,556 |
|
|
|
| |
Washington (1.9%) |
|
|
| |
2,000,000 |
| Kalispel Tribe Indians Priority Dist. Rev. Series 2008, 6.20%, 1/1/16 |
| 1,937,400 |
450,000 |
| Klickitat Co. Pub. Hosp. Dist. No. 2 Rev. Series 2007 (Skyline Hosp. Proj.), 6.00%, 12/1/20 |
| 437,908 |
250,000 |
| Okanogan Co. Pub. Hosp. Dist. No. 4 G.O. Series 2007 (Radian insured), 5.625%, 12/1/23 |
| 264,595 |
See accompanying notes to portfolios of investments on page 58. 39
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | ||
500,000 |
| Skagit Co. Public Hosp. Dist. No. 001 Rev. Series 2005 (Skagit Valley Hosp.), 5.50%, 12/1/13 |
|
| 522,950 | |
|
| WA State Hsg. Fin. Commn. Nonprofit Rev. Series: |
|
|
| |
1,750,000 |
| 2007-A (Skyline At First Hill Proj.), 5.25%, 1/1/17 |
|
| 1,662,063 | |
1,250,000 |
| 2007-B (Skyline At First Hill Proj.), 5.10%, 1/1/13 |
|
| 1,219,263 | |
|
|
|
| |||
|
|
|
|
| 6,044,179 | |
|
|
|
| |||
|
|
|
|
|
| |
West Virginia (0.4%) |
|
|
| |||
1,250,000 |
| Pleasants Co. Pollution Ctrl. Rev. Series 1995-C (Monongahela Pwr. Co.), 6.15%, 5/1/15 |
|
| 1,252,750 | |
|
|
|
| |||
Wisconsin (2.9%) |
|
|
| |||
500,000 |
| Milwaukee Redev. Auth. Rev. Series 2005-A (Science Ed. Consortium Proj.), 5.125%, 8/1/15 |
|
| 502,580 | |
|
| WI Hlth. & Educ. Fac. Auth. Rev.: |
|
|
| |
220,000 |
| Series 1998 (Lawrence Univ. Proj.), 5.125%, 4/15/28 |
|
| 202,948 | |
2,450,000 |
| Series 1999-A (Aurora Hlth. Care Proj), 5.60%, 2/15/29 |
|
| 2,284,405 | |
225,000 |
| Series 1999-B (Aurora Hlth. Care Proj), 5.50%, 2/15/15 |
|
| 226,892 | |
500,000 |
| Series 1999-B (Aurora Hlth. Care Proj)(ACA insured), 5.625%, 2/15/29 |
|
| 475,530 | |
900,000 |
| Series 1999 (Divine Savior, Inc. Proj.)(ACA insured), 5.70%, 6/1/28 |
|
| 859,068 | |
|
| Series 2001 (Agnesian Healthcare, Inc. Proj.): |
|
|
| |
550,000 |
| 6.00%, 7/1/17 |
|
| 571,439 | |
340,000 |
| 6.00%, 7/1/21 |
|
| 349,027 | |
|
| Series 2003 (Synergy Hlth., Inc. Proj.): |
|
|
| |
225,000 |
| 6.00%, 11/15/23 |
|
| 226,710 | |
250,000 |
| 6.00%, 11/15/32 |
|
| 240,658 | |
225,000 |
| Ref. Series 2003 (Three Pillars Proj.), 4.60%, 8/15/13 |
|
| 226,586 | |
105,000 |
| Series 2004-A (Three Pillars Sr. Living Proj.), 4.15%, 8/15/11 |
|
| 104,996 | |
450,000 |
| Series 2004 (Blood Ctr. Southeastern Proj.), 5.50%, 6/1/24 |
|
| 454,176 | |
425,000 |
| Series 2004 (Beaver Dam Cmnty. Hosp. Inc. Proj.), 5.50%, 8/15/14 |
|
| 413,194 | |
535,000 |
| Series 2005 (Vernon Mem. Hlth. Care Inc. Proj.), 4.65%, 3/1/15 |
|
| 521,700 | |
|
| Ref. Series 2006 (Sr. Hsg. Proj.): |
|
|
| |
315,000 |
| 5.00%, 8/1/09 |
|
| 312,184 | |
300,000 |
| 5.00%, 8/1/10 |
|
| 295,833 | |
500,000 |
| Ref. Series 2006 (Milwaukee Catholic Home Proj.), 5.00%, 7/1/26 |
|
| 453,710 | |
400,000 |
| Series 2006-B (Upland Hills Health Inc. Proj.), 5.125%, 5/15/29 |
|
| 357,932 | |
375,000 |
| Series 2006-A (Marshfield Clinic Proj.), 5.00%, 2/15/11 |
|
| 385,474 | |
|
|
|
| |||
|
|
|
|
| 9,465,042 | |
|
|
|
| |||
|
|
|
|
|
| |
Total municipal bonds (cost: $325,621,744) |
|
| 300,332,814 | |||
|
| |||||
| ||||||
Closed-End Mutual Funds (4.2%) (2) |
|
|
| |||
49,400 |
| BlackRock Insured Municipal Term Trust (MPA) |
|
| 645,164 | |
79,800 |
| BlackRock MuniHoldings Insured Fund II (MUE) |
|
| 935,256 | |
66,500 |
| BlackRock MuniYield Insured Fund (MYI) |
|
| 825,265 | |
23,300 |
| BlackRock MuniHoldings Florida Insured Fund (MFL) |
|
| 282,163 | |
44,800 |
| BlackRock MuniYield Florida Fund (MYF) |
|
| 556,416 | |
14,000 |
| BlackRock MuniYield Florida Insured Fund (MFT) |
|
| 168,980 | |
36,100 |
| BlackRock MuniYield Michigan Insured Fund (MIY) |
|
| 473,632 | |
23,000 |
| BlackRock MuniYield Michigan Insured Fund II (MYM) |
|
| 282,900 | |
208,600 |
| DWS Municipal Income Trust (KTF) |
|
| 2,194,472 | |
20,500 |
| Eaton Vance Florida Municipal Income Fund (FEV) |
|
| 244,155 | |
41,800 |
| Insured Municipal Income Fund (PIF) |
|
| 517,484 | |
58,300 |
| Investment Grade Municipal Income Fund (PPM) |
|
| 719,422 | |
62,600 |
| MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund (MZF) |
|
| 740,558 |
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | |
62,400 |
| Nuveen Florida Investment Quality Municipal Fund (NQF) |
|
| 770,016 |
74,600 |
| Nuveen Florida Quality Income Municipal Fund (NUF) |
|
| 936,976 |
11,700 |
| Nuveen Michigan Premium Income Municipal Fund (NMP) |
|
| 147,420 |
32,900 |
| Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) |
|
| 421,120 |
21,500 |
| Nuveen Premier Municipal Income Fund (NPF) |
|
| 269,825 |
54,911 |
| Putnam Municipal Opportunities Trust (PMO) |
|
| 603,472 |
108,200 |
| Seligman Select Municipal Fund (SEL) |
|
| 1,036,556 |
10,500 |
| Van Kampen Advantage Municipal Income Trust II (VKI) |
|
| 124,740 |
23,200 |
| Van Kampen Pennsylvania Value Municipal Income Trust (VPV) |
|
| 306,008 |
10,689 |
| Van Kampen Trust Investment Grade Muni Fund (VGM) |
|
| 147,086 |
9,000 |
| Western Asset Managed Municipals Fund (MMU) |
|
| 98,100 |
14,839 |
| Western Asset Municipal Partners Fund (MNP) |
|
| 187,713 |
|
|
|
| ||
|
|
|
|
|
|
Total closed-end mutual funds (cost: $14,498,706) |
|
| 13,634,899 | ||
|
| ||||
|
|
|
|
|
|
Short-Term Securities (1.9%) (2) |
|
|
| ||
6,073,125 |
| Dreyfus Tax-Exempt Cash Management Fund, 2.56% |
|
| 6,073,125 |
|
|
|
| ||
|
|
|
|
|
|
Total short-term securities (cost: $6,073,125) |
|
| 6,073,125 | ||
|
| ||||
|
|
|
| ||
Total investments in securities (cost: $346,193,575) (6) |
| $ | 320,040,838 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 41 |
|
|
|
|
|
|
|
|
| |
| One Year Ended March 31, 2008 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
|
|
|
|
The Sit Minnesota Tax-Free Income Fund returned -0.25% for the fiscal year ended March 31, 2008, compared with returns of +6.19% for the Lehman 5-year Municipal Bond Index and +0.62% for the Lipper Minnesota Municipal Bond Fund Index. The Fund’s 30-day SEC yield was 4.66% as of March 31, 2008 and its 12-month distribution rate was 4.23%.
During the last 12 months, the municipal yield curve steepened significantly. Short municipal yields fell approximately 200 basis points while long municipal yields rose 75 basis points. The drop in short municipal yields occurred because the Federal Reserve reduced its federal funds target rate from 5.25% to 2.25%. Long-term municipal yields rose as the subprime loan crisis led to tightened credit conditions. The increase in yields was exacerbated by a flood of supply in the first quarter of 2008. Selling came from leveraged investors unwinding long municipal positions after getting margin calls when the value of their existing collateral became insufficient. In addition, issuance volume was heavy as issuers who were engaged in interest rate swaps and auction rate securities programs sought to refinance debt with long municipals due to sharp increases in short-term borrowing costs and, for the latter, failed auctions.
Several factors contributed to the Fund’s underperformance during the one year period. Credit spreads widened significantly across most municipal sectors as the liquidity crunch unfolded. This spread widening, combined with the rise in yields, resulted in significant price depreciation, particularly as 70% of the Fund’s holdings are deemed to be rated at or below A. The Fund also predominantly invests in revenue bonds which underperformed general obligation bonds by -3.9%, as measured by their respective Lehman sector indices. The Fund’s five largest sectors all had negative price performance during the period with the health care and education sectors performing the worst. However, the income generated in the multi-family, single family, and other revenue sectors more than offset the negative price performance during the period.
We concur with the current market expectations that the Fed will continue to lower the federal funds target rate during the second quarter of 2008 in an effort to avoid a U.S. economic recession. If successful, it is likely that the Fed will shift its focus to inflationary risks during 2009. While we expect the municipal market to remain volatile for the next several months, we believe municipal bond yields are now at very attractive levels for longer-term investors. We expect municipal bond prices to improve going into 2009 and have been positioning the Fund accordingly.
|
INVESTMENT OBJECTIVE AND STRATEGY |
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 Asset Value 3/31/08: |
| $9.76 Per Share |
3/31/07: |
| $10.21 Per Share |
Total Net Assets: |
| $307.7 Million |
30-day SEC Yield: |
| 4.66% |
Tax Equivalent Yield: |
| 7.78%(1) |
12-Month Distribution Rate: |
| 4.23% |
Average Maturity: |
| 14.7 Years |
Duration to Estimated Avg. Life: |
| 4.8 Years(2) |
Implied Duration: |
| 5.4 Years(2) |
(1) For individuals in the 35.0% federal tax and 7.85% MN tax brackets.
(2) See next page.
|
PORTFOLIO STRUCTURE |
42
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|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
| Sit |
| Lehman |
| Lipper | ||||||
3 Month** |
| -0.44 | % |
| 1.93 | % |
| -0.58 | % | ||
6 Month** |
| -0.57 |
|
| 3.88 |
|
| N/A |
| ||
1 Year |
| -0.25 |
|
| 6.19 |
|
| 0.62 |
| ||
5 Years |
| 3.39 |
|
| 3.42 |
|
| 3.33 |
| ||
10 Years |
| 3.96 |
|
| 4.65 |
|
| 4.17 |
| ||
Inception |
| 4.79 |
|
| 4.87 |
|
| 4.57 |
| ||
| (12/1/93) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
| Sit |
| Lehman |
| Lipper | ||||||
1 Year |
| -0.25 |
|
| 6.19 |
|
| 0.62 |
| ||
5 Year |
| 18.16 |
|
| 18.28 |
|
| 17.80 |
| ||
10 Year |
| 47.48 |
|
| 57.59 |
|
| 50.41 |
| ||
Inception |
| 95.59 |
|
| 97.63 |
|
| 89.78 |
| ||
(12/1/93) |
|
|
|
|
|
|
|
|
| ||
*As of 3/31/08. |
|
|
| **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 3/31/08 would have grown to $19,559 in the Fund or $19,763 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
|
|
| |
| Adviser’s |
| |
| AAA | 0.5% |
|
| AA | 0.5 |
|
| A | 7.2 |
|
| BBB | 19.2 |
|
| BB | 9.4 |
|
| <BB | 0.3 |
|
|
|
| |
| Total | 37.1% |
|
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
43
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | ||
Municipal Bonds (94.6%) (2) |
|
|
| |||
Education/Student Loan (12.0%) |
|
|
| |||
|
|
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006: |
|
|
|
| 4,288,535 |
| 5.46%, 1/1/28 |
|
| 3,934,045 |
| 5,125,584 |
| 5.30%, 11/1/32 |
|
| 4,491,396 |
|
|
| Minneapolis Educ. Fac. Lease Rev. Series 2006-A (Seed/Harvest Prep. Proj.) (LOC-U.S. Bank): |
|
|
|
| 775,000 |
| 5.125%, 1/1/16 |
|
| 737,769 |
| 875,000 |
| 6.25%, 1/1/21 |
|
| 839,317 |
|
|
| Minnesota Higher Educ. Fac. Auth. Rev.: |
|
|
|
| 750,000 |
| Series 1998-4T (College of St. Benedict), 5.35%, 3/1/20 |
|
| 760,590 |
| 378,259 |
| Lease Rev. Series 1999-5A (Concordia University), 5.25%, 4/25/14 |
|
| 379,352 |
| 700,000 |
| Series 1999-4Y (Augsburg College), 5.05%, 10/1/13 |
|
| 707,749 |
| 150,000 |
| Series 1999-4Y (Augsburg College), 5.20%, 10/1/16 |
|
| 151,074 |
| 75,000 |
| Series 1999-4Y (Augsburg College), 5.30%, 10/1/27 |
|
| 71,437 |
| 700,000 |
| Series 2005-6C (Augsburg College), 5.00%, 5/1/23 |
|
| 668,549 |
|
|
| Series 2006-6J1 (Augsburg College): |
|
|
|
| 730,000 |
| 5.00%, 5/1/10 |
|
| 747,272 |
| 595,000 |
| 5.00%, 5/1/12 |
|
| 623,340 |
| 100,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 4.875%, 10/1/09 |
|
| 100,123 |
| 675,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 5.20%, 10/1/13 |
|
| 675,675 |
| 50,000 |
| Series 1998-4T (St. Benedict College), 5.125%, 3/1/13 |
|
| 50,172 |
| 50,000 |
| Series 2000-5E (St. Mary’s Univ.), 6.75%, 3/1/22 |
|
| 51,311 |
| 100,000 |
| Series 2000-5E (St. Mary’s Univ.), 6.75%, 3/1/26 |
|
| 102,184 |
| 270,000 |
| Series 2004-5U (St. Mary’s Univ.), 3.75%, 10/1/13 |
|
| 259,721 |
| 2,500,000 |
| Series 2004-5Y (Univ. St. Thomas), 5.25%, 10/1/34 |
|
| 2,433,750 |
| 2,000,000 |
| Series 2006-6I (Univ. St. Thomas), 5.00%, 4/1/23 |
|
| 1,981,280 |
|
|
| Series 2006-6K (College of Art & Design): |
|
|
|
| 245,000 |
| 4.15%, 5/1/08 |
|
| 245,179 |
| 270,000 |
| 4.50%, 5/1/10 |
|
| 274,736 |
| 750,000 |
| 5.00%, 5/1/19 |
|
| 751,740 |
| 3,000,000 |
| Series 2006-6M (College of St. Benedict), 4.493%, 10/1/16 |
|
| 2,997,120 |
|
|
| Series 2007-6S (St. Scholastica College): |
|
|
|
| 2,000,000 |
| 5.00%, 12/1/22 |
|
| 1,933,280 |
| 1,900,000 |
| 5.00%, 12/1/27 |
|
| 1,769,698 |
| 2,000,000 |
| Series 2007-6N (College St. Catherine), 4.75%, 4/26/27 |
|
| 1,992,980 |
| 1,115,000 |
| Moorhead Educ. Fac. Rev. Series 2005-A (Concordia College Corp. Proj.), 5.00%, 12/15/20 |
|
| 1,132,729 |
|
|
| Pine City Lease Rev. Series 2006-A (Lakes Intl. Language Academy Proj.): |
|
|
|
| 315,000 |
| 5.75%, 5/1/16 |
|
| 307,049 |
| 300,000 |
| 6.00%, 5/1/26 |
|
| 278,154 |
| 575,000 |
| Ramsey Lease Rev. Series 2004-A (Pact Charter School Proj.), 5.65%, 12/1/13 |
|
| 586,724 |
| 775,000 |
| Olmsted Co. Hsg. & Redev. Auth. Series 2007 (Schaeffer Academy Proj.), 4.977%, 4/25/27 |
|
| 661,478 |
|
|
| St. Paul Hsg. & Redev. Auth. Lease Rev.: |
|
|
|
| 375,000 |
| Series 2002-A (New Spirit Charter School Proj.), 6.50%, 12/1/12 |
|
| 386,794 |
| 605,000 |
| Series 2006-A (Hmong Academy Proj.), 5.50%, 9/1/18 |
|
| 584,962 |
|
|
| Series 2006-A (Cmnty. Peace Academy Proj.): |
|
|
|
| 685,000 |
| 4.35%, 12/1/12 |
|
| 676,712 |
| 600,000 |
| 4.35%, 12/1/14 |
|
| 579,072 |
| 1,500,000 |
| 5.00%, 12/1/18 |
|
| 1,452,900 |
| 500,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Ref. Series 2007 (St. Paul Acad. & Summit Proj.), 5.00%, 10/1/24 |
|
| 501,875 |
| 100,000 |
| Victoria Private School Fac. Rev. Series 1999-A (Holy Family Catholic H.S. Proj.), 5.20%, 9/1/11 |
|
| 100,752 |
|
|
|
|
|
| |
|
|
|
|
|
| 36,980,040 |
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| |
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | |||
Escrowed To Maturity/Prerefunded (3.5%) |
|
|
| ||||
| 465,000 |
| Hopkins Subordinate Multifamily Hsg. Rev. Ref. Series 1996-C (Auburn Apts. Proj.), 8.00%, 6/20/31 |
|
| 470,919 | |
| 55,000 |
| Guam Economic Dev. Auth. Tobacco Settlement Asset-Backed Series 2001-A, 5.00%, 5/15/22 |
|
| 58,694 | |
| 100,000 |
| Minnesota Higher Educ. Fac. Auth. Rev. Series 2000-5D (College Art & Design), 5.75%, 5/1/08 |
|
| 100,326 | |
| 455,000 |
| Minneapolis Hlth. Care Fac. Rev. Series 1999 (Shelter Care Foundation Proj.), 6.00%, 4/1/10 |
|
| 470,188 | |
|
|
| Minneapolis Student Hsg. Rev. Series 2000 (Riverton Community Hsg. Proj.): |
|
|
| |
| 125,000 |
| 6.80%, 7/1/10 |
|
| 136,074 | |
| 240,000 |
| 6.90%, 7/1/11 |
|
| 261,761 | |
| 50,000 |
| Northfield Hospital Rev. Series 2001-C, 6.00%, 11/1/21 |
|
| 55,328 | |
| 605,000 |
| Plymouth Multifamily Hsg. Rev. Refunding Series 1996-C (Fox Forest Apts. Proj.) |
|
|
| |
|
|
| (GNMA collateralized), 8.00%, 6/20/31 |
|
| 612,702 | |
| 435,000 |
| Puerto Rico Childrens Trust Fund Tobacco Settlement Rev. Series 2000, 5.75%, 7/1/20 |
|
| 455,106 | |
| 5,000,000 |
| Puerto Rico Commonwealth Infrastruc. Fin. Auth. Special Obligation Series 2000-A, 5.50%, 10/1/32 |
|
| 5,174,700 | |
|
|
| St. Paul Hsg. & Redev. Auth. Lease Rev.: |
|
|
| |
| 495,000 |
| Series 1999 (St. Paul Academy & Summit School Proj.), 5.50%, 10/1/24 |
|
| 520,780 | |
| 655,000 |
| Series 2001-A (Cmty. of Peace Academy Proj.), 6.375%, 12/1/11 |
|
| 701,466 | |
| 805,000 |
| Waconia Hlth. Care Facs. Rev. Series 1999-A (Ridgeview Med. Ctr. Proj.) 6.125%, 1/1/29 |
|
| 857,341 | |
| 780,000 |
| Western MN Muni Pwr. Agy. Series 1979 (MBIA-IBC insured), 6.60%, 1/1/10 |
|
| 817,947 | |
| 165,000 |
| Winona Port. Auth. Lease Rev. Series 1999-A (Bluffview Montessori School Proj.), 8.00%, 12/1/24 |
|
| 180,530 | |
|
|
|
|
|
| ||
|
|
|
|
|
| 10,873,862 | |
|
|
|
|
|
|
| |
General Obligation (1.3%) |
|
|
| ||||
| 120,000 |
| Austin Impt. G.O. Series 1998-B, 4.70%, 2/1/13 |
|
| 120,194 | |
| 200,000 |
| Barnesville Impt. G.O. Series 2002, 5.00%, 2/1/23 |
|
| 203,866 | |
| 5,000 |
| Cold Spring G.O. Series 1998-B, 4.55%, 12/1/08 |
|
| 5,021 | |
| 75,000 |
| Cold Spring G.O. Series 2000, 5.15%, 2/1/09 |
|
| 75,173 | |
| 650,000 |
| Dakota Co. Cmnty. Dev. Agy. Sr. Hsg. Facs. G.O. Series 2007-A, 5.00%, 1/1/26 |
|
| 643,169 | |
|
|
| Metropolitan Council Minneapolis-St. Paul Met. Area Tran. G.O. Series 2008-B: |
|
|
| |
| 1,425,000 |
| 4.375%, 3/1/24 |
|
| 1,393,764 | |
| 300,000 |
| 4.50%, 3/1/26 |
|
| 293,274 | |
| 500,000 |
| Northern Mariana Islands Commonwealth Ref. G.O. Series 2007-B, 5.00%, 10/1/22 |
|
| 449,790 | |
|
|
| Owatonna G.O. Series 1997: |
|
|
| |
| 265,000 |
| 5.00%, 12/1/13 |
|
| 265,511 | |
| 240,000 |
| 5.00%, 12/1/14 |
|
| 240,451 | |
| 150,000 |
| Sauk Rapids Tax Increment G.O. Series 1997-B, 5.25%, 8/1/12 |
|
| 150,311 | |
| 100,000 |
| St. Paul Street Impt. Special Assessment G.O. Series 2000-B, 5.30%, 3/1/12 |
|
| 100,223 | |
| 30,000 |
| Winona Water & Sewer G.O. Series 1998-C, 4.90%, 2/1/13 |
|
| 30,055 | |
|
|
|
|
|
| ||
|
|
|
|
|
| 3,970,802 | |
|
|
|
|
|
| ||
Hospital/Health Care (23.1%) |
|
|
| ||||
|
|
| Aitkin Hlth. Care Fac. Rev. Refunding Series (Riverwood Hlth. Care Ctr. Proj.): |
|
|
| |
| 155,000 |
| 5.00%, 2/1/09 |
|
| 155,001 | |
| 615,000 |
| 5.00%, 2/1/12 |
|
| 613,266 | |
| 250,000 |
| 5.25%, 2/1/14 |
|
| 245,602 | |
| 285,000 |
| Bemidji Hlth. Care Facs. Rev. Ref. Series 2006 (North County Health Svcs. Proj.), 5.00%, 9/1/21 |
|
| 285,960 | |
| 4,025,000 |
| Breckenridge Rev. Series 2004-A (Catholic Hlth. Initiatives Proj.), 5.00%, 5/1/30 |
|
| 3,904,411 | |
| 85,000 |
| Cambridge Hsg. & Hlth. Care Fac. Rev. Series 1998-C (Grandview West Proj.), 5.25%, 10/1/08 |
|
| 85,027 | |
|
|
| Carlton Hlth. Care & Hsg. Fac. Rev. Ref. Series 2006 (Faith Care Ctr. Proj.): |
|
|
| |
| 100,000 |
| 5.00%, 4/1/13 |
|
| 98,053 | |
| 400,000 |
| 5.20%, 4/1/16 |
|
| 379,852 | |
| 2,000,000 |
| Chippewa Co. Gross Rev. Series 2007 (Montevideo Hosp. Proj.), 4.625%, 3/1/14 |
|
| 1,887,440 | |
|
|
| Cold Spring Nursing Home & Sr. Hsg. Rev. Series 2005 (Assumption Home, Inc. Proj.): |
|
|
| |
| 135,000 |
| 4.70%, 3/1/14 |
|
| 130,607 | |
| 145,000 |
| 4.80%, 3/1/15 |
|
| 140,254 |
|
|
See accompanying notes to portfolios of investments on page 58. | 45 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | ||
| 150,000 |
| 4.90%, 3/1/16 |
|
| 142,285 |
|
|
| Crookston Hlth. Care Fac. Rev. Ref. Series 2007 (Riverview Hlth. Proj.): |
|
|
|
| 285,000 |
| 4.75%, 5/1/10 |
|
| 284,319 |
| 600,000 |
| 4.85%, 5/1/12 |
|
| 597,366 |
|
|
| Crookston Nursing Home & Multifamily Hsg. Rev Series 2002-A (Villa St. Vincent Proj.): |
|
|
|
| 25,000 |
| 4.75%, 9/1/08 |
|
| 24,976 |
| 75,000 |
| 5.50%, 9/1/11 |
|
| 75,298 |
|
|
| Cuyuna Range Hosp. Dist. Hlth. Fac. Gross Rev.: |
|
|
|
|
|
| Series 2005: |
|
|
|
| 265,000 |
| 4.50%, 6/1/13 |
|
| 259,605 |
| 400,000 |
| 5.20%, 6/1/25 |
|
| 376,248 |
| 1,000,000 |
| 5.50%, 6/1/35 |
|
| 948,670 |
|
|
| Ref. Series 2007: |
|
|
|
| 430,000 |
| 4.75%, 6/1/18 |
|
| 403,830 |
| 720,000 |
| 5.00%, 6/1/19 |
|
| 686,736 |
| 500,000 |
| 5.00%, 6/1/29 |
|
| 449,870 |
| 1,500,000 |
| Detroit Lakes Hsg. Rev. Ref. Series 2004-E (Mankato Lutheran Proj.), 4.25%, 8/1/34 |
|
| 1,461,525 |
| 445,000 |
| Detroit Lakes Hsg. & Hlth. Facs. Rev. Ref. Series 2004-A (CDL Homes Proj.), 4.00%, 8/1/34 |
|
| 445,009 |
| 305,000 |
| Duluth Econ. Dev. Auth. Hlth. Care Fac. Rev. Series 2002 (St. Luke’s Hosp. Proj.), 6.00%, 6/15/12 |
|
| 311,085 |
| 794,412 |
| Duluth Sr. Hsg. Loan Participation (Lakeshore Proj.) Series 2004, 4.00%, 8/20/36 |
|
| 758,203 |
| 971,585 |
| Duluth Hsg. & Redev. Auth. Sr. Hsg. Fac. Loan Participation (Lakeshore Proj.) |
|
|
|
|
|
| Series 2005, 5.20%, 12/20/35 |
|
| 949,103 |
|
|
| Elk River Rev. Series 1998 (Care Choice Member Proj.): |
|
|
|
| 725,000 |
| 5.60%, 8/1/13 |
|
| 725,087 |
| 115,000 |
| 5.75%, 8/1/23 |
|
| 109,805 |
| 260,000 |
| Fairbault Co. Hosp. Dist. Gross Rev. Series 1999 (Blue Earth Proj.), 5.30%, 12/1/08 |
|
| 259,597 |
| 1,925,000 |
| Glencoe Hlth. Care Fac. Rev. Series 2005 (Glencoe Regional Hlth. Svcs. Proj.), 5.00%, 4/1/25 |
|
| 1,767,747 |
|
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Augustana Home of Hastings Proj.): |
|
|
|
| 115,000 |
| 5.10%, 11/1/09 |
|
| 114,244 |
| 120,000 |
| 5.20%, 11/1/10 |
|
| 119,560 |
| 135,000 |
| 5.40%, 11/1/12 |
|
| 133,786 |
| 140,000 |
| 5.50%, 11/1/13 |
|
| 137,491 |
|
|
| Inver Grove Heights Nursing Home Rev. Refunding Series 2006 (Presbyterian Homes Care Proj.): |
|
|
|
| 250,000 |
| 5.00%, 10/1/11 |
|
| 248,892 |
| 290,000 |
| 5.00%, 10/1/12 |
|
| 286,784 |
| 450,000 |
| 5.00%, 10/1/16 |
|
| 433,998 |
|
|
| Maple Grove Hlth. Care Fac. Rev. Series 2005 (North Memorial Hlth. Care Proj.): |
|
|
|
| 1,000,000 |
| 5.00%, 9/1/20 |
|
| 1,004,880 |
| 2,000,000 |
| 5.00%, 9/1/29 |
|
| 1,891,800 |
|
|
| Maple Grove Hlth. Care Sys. Rev. Series 2007 (Maple Grove Hosp. Corp.): |
|
|
|
| 1,200,000 |
| 5.25%, 5/1/25 |
|
| 1,182,648 |
| 1,500,000 |
| 5.25%, 5/1/28 |
|
| 1,444,095 |
|
|
| Maplewood Hlth. Care Fac. Rev. Refunding Series 2005-A (VOA Care Centers Proj.): |
|
|
|
| 255,000 |
| 4.125%, 10/1/08 |
|
| 253,182 |
| 300,000 |
| 4.375%, 10/1/09 |
|
| 294,699 |
|
|
| Marshall Medical Center Gross Rev. (Weiner Memorial Medical Center Proj.): |
|
|
|
| 150,000 |
| Series 2003-B, 4.85%, 11/1/11 |
|
| 154,819 |
| 50,000 |
| Series 2003-A, 5.00%, 11/1/14 |
|
| 51,569 |
| 850,000 |
| Series 2003-A, 5.85%, 11/1/23 |
|
| 872,542 |
| 100,000 |
| Series 2003-A, 6.00%, 11/1/28 |
|
| 102,226 |
| 3,500,000 |
| Marshall Medical Ctr. Gross Rev. Series 2006 (Avera Marshall Reg. Med. Ctr. Proj.), 4.75%, 11/1/28 |
|
| 3,103,835 |
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | ||
|
|
| Meeker Co. Hosp. Facs. Gross Rev. Series 2007 (Mem. Hosp. Proj.): |
|
|
|
| 1,000,000 |
| 5.00%, 11/1/14 |
|
| 978,580 |
| 750,000 |
| 5.625%, 11/1/22 |
|
| 716,910 |
| 1,000,000 |
| Minneapolis Hsg. & Hlth. Care Facs. Rev. Ref. Series 2007-A (Providence Proj.), 5.50%, 10/1/14 |
|
| 970,800 |
|
|
| Minneapolis & St. Paul Hsg. & Redev. Auth. Hlth. Care Sys. Rev. Series 2003 (Health Partners Proj.): |
|
|
|
| 750,000 |
| 5.25%, 12/1/12 |
|
| 785,602 |
| 700,000 |
| 5.25%, 12/1/13 |
|
| 732,725 |
| 1,235,000 |
| 5.00%, 12/1/14 |
|
| 1,265,010 |
| 600,000 |
| 5.875%, 12/1/29 |
|
| 602,952 |
| 250,000 |
| Minneapolis Pooled Rev. Series 1999 (Care Choice Member Proj.), 5.75%, 4/1/19 |
|
| 241,510 |
|
|
| Minneapolis Hlth. Care Fac. Rev.: |
|
|
|
| 1,470,000 |
| Series 2005 (Jones-Harrison Residence Proj.), 5.40%, 10/1/25 |
|
| 1,337,303 |
|
|
| Series 2005-E (Augustana Chapel View Homes Proj.): |
|
|
|
| 190,000 |
| 4.00%, 6/1/08 |
|
| 189,618 |
| 200,000 |
| 4.20%, 6/1/09 |
|
| 197,952 |
| 205,000 |
| 4.40%, 6/1/10 |
|
| 202,327 |
| 220,000 |
| 4.55%, 6/1/11 |
|
| 216,445 |
| 240,000 |
| 4.80%, 6/1/13 |
|
| 236,194 |
| 250,000 |
| 4.90%, 6/1/14 |
|
| 245,732 |
| 255,000 |
| 5.00%, 6/1/15 |
|
| 245,323 |
| 270,000 |
| 5.10%, 6/1/16 |
|
| 254,202 |
| 285,000 |
| 5.25%, 6/1/17 |
|
| 270,360 |
|
|
| Minneapolis Hsg. Fac. Rev. (Augustana Chapel View Homes Proj.): |
|
|
|
|
|
| Series 2004-A: |
|
|
|
| 315,000 |
| 5.20%, 1/1/11 |
|
| 314,080 |
| 500,000 |
| 5.75%, 1/1/19 |
|
| 488,990 |
| 530,000 |
| 5.80%, 1/1/24 |
|
| 506,871 |
| 200,000 |
| 5.50%, 6/1/27 |
|
| 175,460 |
| 500,000 |
| Refunding Series 2006-A 5.00%, 6/1/15 |
|
| 488,495 |
|
|
| MN Agr. & Econ. Dev. Board Hlth. Care Rev. Series 1999 (Benedictine Care Centers. Proj.): |
|
|
|
| 115,000 |
| 5.45%, 2/1/09 |
|
| 115,337 |
| 120,000 |
| 5.45%, 8/1/09 |
|
| 120,560 |
| 120,000 |
| 5.50%, 2/1/10 |
|
| 120,905 |
| 125,000 |
| 5.50%, 8/1/10 |
|
| 126,186 |
|
|
| MN Agr. & Econ. Dev. Board Rev.: |
|
|
|
|
|
| Series 2000 (Evangelical Lutheran Good Samaritan Society Proj.): |
|
|
|
| 215,000 |
| 5.80%, 8/1/08 |
|
| 217,053 |
| 405,000 |
| 6.55%, 8/1/16 |
|
| 431,041 |
| 770,000 |
| Series 2002-B (Principal Custody Receipts Proj.), zero coupon, 3.85% effective yield, 11/15/22 |
|
| 679,402 |
| 220,000 |
| Series 2002 (Evangelical Lutheran Good Samaritan Society Proj.), 5.50%, 2/1/12 |
|
| 233,996 |
|
|
| Series 2000-A (Fairview Hlth. Care Sys. Proj.): |
|
|
|
| 10,000 |
| 6.375%, 11/15/22 |
|
| 10,426 |
| 20,000 |
| 6.375%, 11/15/29 |
|
| 20,708 |
|
|
| Moose Lake Cmnty. Hosp. Dist. Hlth. Facs. Rev. Ref. Series 2005-A (Crossover Proj.): |
|
|
|
| 110,000 |
| 4.10%, 12/1/10 |
|
| 106,803 |
| 225,000 |
| 4.40%, 12/1/14 |
|
| 211,565 |
| 250,000 |
| 5.00%, 12/1/22 |
|
| 221,353 |
| 750,000 |
| 5.10%, 12/1/24 |
|
| 661,133 |
| 300,000 |
| New Hope Hlth. Care Facs. Rev. Series 2003-A (St. Therese Home, Inc. Proj.), 5.90%, 10/1/23 |
|
| 293,922 |
|
|
| New Hope Hlth. Care Facs. Rev. (MN Masonic Home North Ridge Proj.): |
|
|
|
| 1,125,000 |
| 5.90%, 3/1/19 |
|
| 1,079,179 |
| 810,000 |
| 5.875%, 3/1/29 |
|
| 747,549 |
|
|
See accompanying notes to portfolios of investments on page 58. | 47 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| March 31, 2008 |
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| Northfield Hospital Rev. Series 2006: |
|
|
|
|
| 900,000 |
| 5.50%, 11/1/15 |
|
| 939,033 |
|
| 1,255,000 |
| 5.25%, 11/1/21 |
|
| 1,222,847 |
|
|
|
| Olmsted Co. Hlth. Care Fac. Rev. Series 1998 (Olmsted Medical Ctr. Proj.): |
|
|
|
|
| 775,000 |
| 5.45%, 7/1/13 |
|
| 775,659 |
|
| 900,000 |
| 5.55%, 7/1/19 |
|
| 875,142 |
|
|
|
| Pine Island Hlth. Care Facs. Rev. Series 2001 (Olmsted Med. Ctr. Proj.): |
|
|
|
|
| 155,000 |
| 4.90%, 7/1/09 |
|
| 154,884 |
|
| 240,000 |
| 5.00%, 7/1/10 |
|
| 240,005 |
|
|
|
| Redwood Falls Hosp. Fac. Gross Rev. Series 2006 (Redwood Area Hosp. Proj.): |
|
|
|
|
| 190,000 |
| 5.00%, 12/1/09 |
|
| 190,167 |
|
| 100,000 |
| 5.00%, 12/1/10 |
|
| 100,166 |
|
| 1,000,000 |
| 5.00%, 12/1/21 |
|
| 894,640 |
|
| 500,000 |
| Rochester Hlth. Care & Hsg. Rev. Series 2003-A (Samaritan Bethany Inc. Proj.), 6.25%, 8/1/19 |
|
| 503,520 |
|
|
|
| Shakopee Hlth. Care Facs. Rev. Series 2004 (St. Francis Regl. Med. Ctr. Proj.): |
|
|
|
|
| 125,000 |
| 5.10%, 9/1/25 |
|
| 119,303 |
|
| 3,475,000 |
| 5.25%, 9/1/34 |
|
| 3,196,097 |
|
|
|
| Stillwater Hlth. Care Rev. Series 2005 (Hlth. Sys. Obligation Proj.): |
|
|
|
|
| 2,500,000 |
| 5.00%, 6/1/25 |
|
| 2,440,725 |
|
| 750,000 |
| 5.00%, 6/1/35 |
|
| 692,415 |
|
|
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 1998 (Regions Hosp. Proj.): |
|
|
|
|
| 250,000 |
| 5.00%, 5/15/10 |
|
| 252,843 |
|
| 60,000 |
| 5.00%, 5/15/11 |
|
| 60,544 |
|
| 1,365,000 |
| 5.20%, 5/15/13 |
|
| 1,375,865 |
|
| 2,070,000 |
| 5.25%, 5/15/18 |
|
| 2,069,876 |
|
| 800,000 |
| 5.30%, 5/15/28 |
|
| 742,416 |
|
| 1,000,000 |
| St. Paul Hsg. & Redev. Auth. Hosp. Rev. Series 2005 (Health East Proj.), 5.25%, 11/15/14 |
|
| 1,013,610 |
|
| 2,000,000 |
| St. Paul Hsg. & Redev. Auth. Nursing Home Dev. Rev. Series 2006, 5.63%, 10/1/33 |
|
| 1,742,280 |
|
| 1,210,000 |
| St. Paul HRA Rev. Refunding Series 1996-C (St. Mary’s Home Proj.), 7.00%, 7/1/21 |
|
| 1,210,666 |
|
|
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2005 (Gillette Childrens Hosp. Proj.): |
|
|
|
|
| 300,000 |
| 4.00%, 2/1/11 |
|
| 290,457 |
|
| 200,000 |
| 5.00%, 2/1/13 |
|
| 199,138 |
|
| 225,000 |
| 5.00%, 2/1/14 |
|
| 222,856 |
|
| 345,000 |
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2001-A (Model Cities Hlth. Ctr.), 6.50%, 11/1/11 |
|
| 339,566 |
|
| 580,000 |
| St. Paul Hsg. & Redev. Auth. Hlth. Care Fac. Rev. Series 2006 |
|
|
|
|
|
|
| (HealthPartners Oblig. Group Proj.), 5.25%, 5/15/36 |
|
| 510,533 |
|
| 665,000 |
| St. Paul Port Auth. Lease Rev. Series 2005-A (Health East Midway Campus Proj.), 5.00%, 5/1/10 |
|
| 670,067 |
|
| 50,000 |
| Washington Co. Hsg. & Redev. Auth. Hosp. Rev. Series 1998 (Healtheast Proj.), 5.25%, 11/15/12 |
|
| 50,552 |
|
|
|
|
|
| > | >> |
|
|
|
|
|
|
| 70,949,318 |
|
|
|
|
|
| > | > |
|
Industrial / Pollution Control (2.6%) |
|
|
|
| |||
| 605,000 |
| Anoka Co. Solid Waste Disp. Rev. Series 1987-A (Natl. Rural Util. Proj.), 6.95%, 12/1/08 (4) |
|
| 607,438 |
|
| 710,000 |
| Burnsville Solid Waste Rev. Refunding Series 2003-A (Freeway Transfer Inc. Proj.), 4.15%, |
|
| 710,135 |
|
| 615,000 |
| Cohasset Pollution Ctrl. Rev. Refunding Series 2004 (Allete, Inc. Proj.), 4.95%, 7/1/22 |
|
| 603,370 |
|
| 460,000 |
| E. Grand Forks Indus. Dev. Rev. Refunding Series 2001-B (Am. Crystal Sugar Proj.), 5.40%, 4/1/11 |
|
| 472,678 |
|
| 500,000 |
| Otter Tail Co. Rev. Sub. Series 2007-A (Otter Tail Proj.), 7.50%, 11/1/19 (4) |
|
| 429,850 |
|
|
|
| Owatonna Industrial Dev. Rev. Series 1997 (Slidell, Inc. Proj.): |
|
|
|
|
| 280,000 |
| 7.25%, 5/1/14 (4)(7) |
|
| 168,000 |
|
| 505,000 |
| 7.375%, 5/1/17 (4)(7) |
|
| 303,000 |
|
| 20,000 |
| 7.375%, 5/1/20 (4)(7) |
|
| 12,000 |
|
| 10,000 |
| 7.50%, 5/1/24 (7) |
|
| 6,000 |
|
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| Puerto Rico Childrens Trust Fund Tobacco Settlement Rev. : |
|
|
|
|
| 300,000 |
| Series 2002, 4.00%, 5/15/10 |
|
| 298,482 |
|
| 1,020,000 |
| Series 2002, 5.375%, 5/15/33 |
|
| 969,418 |
|
| 465,000 |
| Roseville Dev. Rev. Refunding Series 2004 (Roseville Office Plaza Proj.), 4.625%, 8/1/12 |
|
| 479,592 |
|
| 265,000 |
| Sauk Centre Industrial Dev. Rev. Series 1998 (Seluemed LLP Proj.)(LOC First Trust), 5.75%, |
|
| 259,488 |
|
|
|
| St. Paul Hsg. & Redev. Auth. District Cooling Rev. Series 1998-J: |
|
|
|
|
| 95,000 |
| 5.125%, 3/1/12 |
|
| 96,539 |
|
| 500,000 |
| 5.35%, 3/1/18 |
|
| 504,090 |
|
|
|
| Virgin Islands Tobacco Settlement Financing Corp. Asset-Backed Rev. Series 2001: |
|
|
|
|
| 750,000 |
| zero coupon, 4.95% effective yield, 5/15/14 |
|
| 750,173 |
|
| 1,445,000 |
| 5.00%, 5/15/21 |
|
| 1,368,950 |
|
|
|
|
|
| > | > |
|
|
|
|
|
|
| 8,039,203 |
|
|
|
|
|
| > | > |
|
Insured (7.3%) |
|
|
|
| |||
| 1,500,000 |
| Bemidji Hlth. Care Facs. Rev. Series 2002 (North Country Hlth. Svcs. Proj.) (Radian insured) |
|
|
|
|
|
|
| 5.00%, 9/1/24 |
|
| 1,480,110 |
|
| 100,000 |
| Cohasset Poll. Ctl. Rev. Ref. Series 2004 (Coll. Allete Proj.) (Radian-IBCC insured), 4.95%, 7/1/22 |
|
| 98,845 |
|
|
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Regina Med. Ctr.)(ACA insured): |
|
|
|
|
| 970,000 |
| 5.25%, 9/15/18 |
|
| 940,396 |
|
| 705,000 |
| 5.30%, 9/15/28 |
|
| 621,077 |
|
| 20,000 |
| Itasca Co. ISD No. 318 G.O. Series 1996 (MBIA insured), 5.20%, 2/1/10 |
|
| 20,041 |
|
|
|
| Minneapolis & St. Paul Metro Airport Comm. Airport Rev.: |
|
|
|
|
| 75,000 |
| Series 1999-B (Ambac insured), 5.25%, 1/1/18 (4) |
|
| 75,892 |
|
| 20,000 |
| Series 2001-B (FGIC Insured), 5.75%, 1/1/16 |
|
| 20,623 |
|
| 2,010,000 |
| Ref. Sub. Series 2005-C (FGIC insured), 5.00%, 1/1/22 |
|
| 2,017,839 |
|
| 1,250,000 |
| Sub. Series 2005-B (Ambac insured), 5.00%, 1/1/25 (4) |
|
| 1,197,887 |
|
| 1,750,000 |
| Sub. Series 2007-B (FGIC Insured), 5.00%, 1/1/25 |
|
| 1,716,785 |
|
| 485,000 |
| MN HFA Single Family Mtg. Rev. Series 2001-A (MBIA insured), 5.35%, 7/1/17 |
|
| 501,364 |
|
| 305,000 |
| North Mankato Impt. G.O. Series 2000-A (FGIC insured), 4.75%, 2/1/10 |
|
| 305,509 |
|
|
|
| Perham Gas Utility Rev. Series 1999 (Radian insured): |
|
|
|
|
| 300,000 |
| 5.35%, 6/1/19 |
|
| 305,208 |
|
| 50,000 |
| 5.45%, 6/1/29 |
|
| 50,129 |
|
| 1,000,000 |
| Puerto Rico Cwlth. Hwy. & Trnsn. Auth. Rev. Ref. Series 2007-N (FSA insured), variable rate, |
|
| 700,000 |
|
| 100,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 1997-C (MBIA-IBC insured), 5.25%, 7/1/09 |
|
| 101,703 |
|
| 2,000,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Series 2005-RR (FGIC insured), 5.00%, 7/1/22 |
|
| 1,997,820 |
|
| 600,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU (FSA insured), variable rate, 7/1/29 |
|
| 450,000 |
|
| 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 |
|
| 200,576 |
|
| 510,000 |
| St. Cloud Hosp. Facs. Rev. Ref. (St. Cloud Hosp. Proj.) (Ambac insured), |
|
|
|
|
|
|
| Series 1996-B, 5.00%, 7/1/20 |
|
| 511,341 |
|
|
|
| St. Cloud Hlth. Care Rev. Series 2000-A (St. Cloud Hosp. Obligated Group)(FSA insured): |
|
|
|
|
| 200,000 |
| 5.125%, 5/1/09 |
|
| 206,388 |
|
| 250,000 |
| 5.75%, 5/1/26 |
|
| 260,648 |
|
| 250,000 |
| St. Cloud Hsg. & Redev. Auth. In & For Sales Tax Rev. Ref. Series 1998-A |
|
|
|
|
|
|
| (Paramount Theater Proj.) (FGIC insured), 5.00%, 3/1/22 |
|
| 250,213 |
|
| 2,270,000 |
| St. Paul Hsg. & Redev. Sales Tax Rev. Refunding Series 1996 (Civic Center Proj.) |
|
|
|
|
|
|
| (FSA insured), 7.10%, 11/1/23 |
|
| 2,690,245 |
|
| 3,100,000 |
| Southern MN Pwr. Agy. Pwr. Supply Sys. Rev Series 2006 (MBIA insured), 4.84%, 1/1/13 |
|
| 3,049,160 |
|
| 2,700,000 |
| White Earth Band of Chippewa Indians Rev. Series 2000-A (ACA insured), 7.00%, 12/1/11 |
|
| 2,779,785 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 22,549,584 |
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 58. | 49 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
| Multifamily Mortgage (20.0%) |
|
|
|
| ||
|
|
| Apple Valley Multifamily Hsg. Rev. Refunding Series 1998-A (Mtg. Loan/Apple Valley Villa Proj.) (GNMA collateralized): |
|
|
|
|
| 40,000 |
| 4.90%, 8/1/09 |
|
| 40,260 |
|
| 1,520,000 |
| 5.25%, 8/1/18 |
|
| 1,524,043 |
|
|
|
| Austin Hsg. & Redev. Auth. Governmental Hsg. Gross Rev. (Courtyard Res. Proj.): |
|
|
|
|
| 640,000 |
| Series 2000-A, 7.15%, 1/1/20 |
|
| 656,883 |
|
| 500,000 |
| Series 2000-A, 7.25%, 1/1/32 |
|
| 509,755 |
|
| 2,715,000 |
| Carver Co. Hsg. & Redev. Auth. Multifamily Hsg. Gross Rev. & Ltd. Tax Refunding Series 1997-A(Lake Grace Apts. Proj.), 6.00%, 7/1/28 |
|
| 2,649,487 |
|
|
|
| Chaska Multifamily Hsg. Rev. Series 1999 (West Suburban Hsg. Partners Proj.): |
|
|
|
|
| 95,000 |
| 5.00%, 9/1/09 (4) |
|
| 95,521 |
|
| 495,000 |
| 5.375%, 9/1/14 (4) |
|
| 491,139 |
|
| 500,000 |
| Cloquet Hsg. Fac. Rev. Ref. Series 2005-A (HADC Cloquet LLC Proj.), 5.50%, 8/1/25 |
|
| 454,205 |
|
| 700,000 |
| Coon Rapids Multifamily Hsg. Rev. Refunding Series 1997-A (Margaret Place Apts. Proj.), |
|
|
|
|
|
|
| 6.50%, 5/1/25 |
|
| 703,598 |
|
|
|
| Coon Rapids Senior Hsg. Rev. Refunding Series 1998 (Epiphany Sr. Citizens Hsg. Corp. Proj.): |
|
|
|
|
| 115,000 |
| 5.40%, 11/1/08 |
|
| 115,007 |
|
| 170,000 |
| 5.50%, 11/1/10 |
|
| 169,986 |
|
| 545,000 |
| 5.80%, 11/1/18 |
|
| 540,689 |
|
| 3,065,000 |
| Cottage Grove Sr. Hsg. Rev. Series 2006-A (Cottage Grove, Inc. Proj.), 5.00%, 12/1/31 |
|
| 2,484,642 |
|
|
|
| Dakota Co. Cmnty. Dev. Agy. Multifamily Hsg. Rev. Ref. Series 2007-A (Commons On Marice Proj.): |
|
|
|
|
| 240,000 |
| 4.30%, 11/1/08 |
|
| 238,481 |
|
| 150,000 |
| 4.40%, 11/1/09 |
|
| 147,747 |
|
| 500,000 |
| 5.00%, 11/1/22 |
|
| 438,555 |
|
|
|
| Eden Prairie Multifamily Hsg. Rev. Refunding : |
|
|
|
|
| 300,000 |
| Series 1997-A (Preserve Place Proj.) (GNMA collateralized), 5.50%, 1/20/18 |
|
| 305,577 |
|
| 410,000 |
| Series 1997-A (Preserve Place Proj.) (GNMA collateralized), 5.60%, 7/20/28 |
|
| 412,152 |
|
| 470,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.00%, 8/20/21 |
|
| 504,573 |
|
| 675,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.15%, 8/20/31 |
|
| 713,603 |
|
| 1,185,000 |
| Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.20%, 2/20/43 |
|
| 1,249,547 |
|
| 790,000 |
| Subordinate Series 2001-C (Rolling Hills Proj.), 9.00%, 4/1/43 |
|
| 789,795 |
|
|
|
| Eveleth Multifamily Hsg. Rev. Sr. Series 2006-A1 (Manor House Woodland Proj.): |
|
|
|
|
| 200,000 |
| 4.90%, 10/1/09 |
|
| 198,560 |
|
| 140,000 |
| 4.95%, 10/1/10 |
|
| 138,744 |
|
| 100,000 |
| 5.00%, 10/1/11 |
|
| 98,771 |
|
| 155,000 |
| 5.10%, 10/1/12 |
|
| 153,067 |
|
| 165,000 |
| 5.15%, 10/1/13 |
|
| 162,070 |
|
|
|
| Faribault Hsg. & Redev. Auth. Govt. Hsg. Dev. Gross Rev. Ref. Series 1998-A (Trails Edge Apts. Proj.): |
|
|
|
|
| 355,000 |
| 5.125%, 2/1/18 |
|
| 346,675 |
|
| 650,000 |
| 5.25%, 2/1/28 |
|
| 580,697 |
|
|
|
| Fairmont Hsg. Fac. Rev. Series 2002-A1 (Homestead-GEAC Proj.): |
|
|
|
|
| 995,000 |
| 6.625%, 10/1/11 |
|
| 997,358 |
|
| 295,000 |
| 6.875%, 10/1/14 |
|
| 296,581 |
|
|
|
| Fairmont Hsg. Fac. Rev. Series 2005-A (Goldfinch Estates-GEAC Proj.): |
|
|
|
|
| 300,000 |
| 5.75%, 10/1/17 |
|
| 281,409 |
|
| 290,000 |
| 6.00%, 10/1/21 |
|
| 270,927 |
|
|
|
| Golden Valley Rev. Series 1999-A (Covenant Retirement Cmntys. Proj.): |
|
|
|
|
| 695,000 |
| 5.50%, 12/1/25 |
|
| 689,516 |
|
| 1,785,000 |
| 5.50%, 12/1/29 |
|
| 1,717,134 |
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| Grand Rapids Hsg. & Redev. Auth. (Lakeshore Place and Forest Park West Apts. Proj.): |
|
|
|
|
| 25,000 |
| Series 1999-B, 5.00%, 10/1/09 |
|
| 25,431 |
|
| 500,000 |
| Series 1999-A, 5.20%, 10/1/19 |
|
| 501,030 |
|
| 1,660,000 |
| Series 1999-A, 5.30%, 10/1/29 |
|
| 1,528,561 |
|
|
|
| Hopkins Multifamily Hsg. Rev. Series 1996 (Hopkins Renaissance Proj.) (Section 8): |
|
|
|
|
| 100,000 |
| 5.85%, 4/1/09 |
|
| 101,183 |
|
| 450,000 |
| 6.25%, 4/1/15 |
|
| 455,314 |
|
| 120,000 |
| Hutchinson Hsg. Fac. Rev. Series 2003-A (Prince of Peace Apts. Proj.), 4.50%, 10/1/08 |
|
| 120,006 |
|
| 245,000 |
| Inver Grove Heights Nursing Home Rev. Ref. Series 2006 (Presbyterian Homes |
|
|
|
|
|
|
| Care Proj.), 5.50%, 10/1/33 |
|
| 224,045 |
|
| 1,400,000 |
| Maplewood Multifamily Hsg. Rev. Series 1998 (Park Edge Apts. Proj.), 6.50%, 5/1/29 (4) |
|
| 1,357,776 |
|
| 2,765,000 |
| Minneapolis & St. Paul Hsg. & Redev. Auth. Multifamily Hsg. Rev. Series (Torre De San Proj.) |
|
|
|
|
|
|
| (GNMA Collateralized), 4.75%, 1/20/42 |
|
| 2,336,674 |
|
|
|
| Minneapolis Multifamily Hsg. Rev.: |
|
|
|
|
| 330,000 |
| Series 1996 (Belmont Apts.), 7.25%, 11/1/16 |
|
| 330,845 |
|
| 105,000 |
| Series 1996-A (Nicollet Towers) (Section 8), 5.60%, 6/1/08 |
|
| 105,401 |
|
| 5,020,000 |
| Series 1996-A (Nicollet Towers) (Section 8), 6.00%, 12/01/19 |
|
| 5,042,138 |
|
| 115,000 |
| Ref. Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 4.75%, 12/20/12 (4) |
|
| 115,731 |
|
| 1,200,000 |
| Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 5.10%, 12/20/18 (4) |
|
| 1,201,608 |
|
| 320,000 |
| Series 2000 (Garr Scott Loft Proj.) (LOC U.S. Bank), 5.95%, 5/1/30 (4) |
|
| 327,094 |
|
| 10,000 |
| Series 2003-A (Sumner Proj.) (GNMA collateralized), 3.00%, 8/20/08 (4) |
|
| 10,009 |
|
| 835,000 |
| Series 2007 (Blaisdell Apts. Proj.), 5.10%, 4/1/17 (4) |
|
| 796,941 |
|
|
|
| Ref. Series 2007-A (Keeler Apts. Proj.): |
|
|
|
|
| 150,000 |
| 4.50%, 10/1/12 |
|
| 147,840 |
|
| 580,000 |
| 4.65%, 10/1/15 |
|
| 549,353 |
|
|
|
| Moorhead Sr. Hsg. Rev. Series 2006 (Sheyenne Crossing Proj.): |
|
|
|
|
| 300,000 |
| 5.00%, 4/1/13 |
|
| 295,446 |
|
| 170,000 |
| 5.10%, 4/1/14 |
|
| 167,620 |
|
| 85,000 |
| Series 2004-A, 4.875%, 8/1/24 (4) |
|
| 80,456 |
|
|
|
| Series 1997-A: |
|
|
|
|
| 60,000 |
| 5.40%, 8/1/10 (4) |
|
| 60,988 |
|
| 125,000 |
| 5.45%, 8/1/11(4) |
|
| 127,019 |
|
| 100,000 |
| Series 2000-A (Section 8), 5.375%, 2/1/09 (4) |
|
| 101,897 |
|
| 1,350,000 |
| MN HFA Residential Hsg. Rev. Series 2006-I, 5.00%, 7/1/21 |
|
| 1,323,634 |
|
| 650,000 |
| MN HFA Residential Hsg. Rev. Series 2006-A1, 5.10%, 8/1/47 |
|
| 575,692 |
|
|
|
| Minnetonka Multifamily Hsg. Rev. Ref. Series 1999-A (GNMA coll.) (Archer Heights Apts. Proj.): |
|
|
|
|
| 540,000 |
| 5.10%, 7/20/13 (4) |
|
| 554,693 |
|
| 975,000 |
| 5.20%, 1/20/18 (4) |
|
| 987,724 |
|
|
|
| North Oaks Sr. Hsg. Rev. Series 2007 (Presbyterian Homes North Oaks Proj.): |
|
|
|
|
| 500,000 |
| 5.25%, 10/1/13 |
|
| 499,645 |
|
| 1,565,000 |
| 5.625%, 10/1/17 |
|
| 1,545,218 |
|
| 500,000 |
| 5.75%, 10/1/22 |
|
| 484,250 |
|
|
|
| Northwest MN Multi Co. Hsg. & Redev. Auth. Hsg. Rev. Series 2005-A (Pooled Hsg. Proj.): |
|
|
|
|
| 145,000 |
| 4.50%, 7/1/09 |
|
| 145,761 |
|
| 115,000 |
| 4.75%, 7/1/10 |
|
| 115,576 |
|
|
|
| Norwood Young America Econ. Dev. Auth. Gov. Rev. Series 2005-A (Harbor at Peace Village Proj.): |
|
|
|
|
| 150,000 |
| 5.35%, 8/1/15 |
|
| 147,492 |
|
| 200,000 |
| 5.625%, 8/1/20 |
|
| 188,850 |
|
| 550,000 |
| 5.75%, 8/1/25 |
|
| 497,365 |
|
| 250,000 |
| 6.00%, 8/1/31 |
|
| 224,328 |
|
|
|
See accompanying notes to portfolios of investments on page 58. | 51 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| Oakdale Multifamily Sr. Hsg. Rev. Refunding Series 2004 (Oak Meadows Proj.): |
|
|
|
|
| 165,000 |
| 4.25%, 4/1/08 |
|
| 165,000 |
|
| 600,000 |
| 5.00%, 4/1/12 |
|
| 590,832 |
|
|
|
| Oronoco Multifamily Hsg. Rev. Ref. Series 2006 (Wedum Shorewood Campus Proj.): |
|
|
|
|
| 600,000 |
| 4.65%, 6/1/09 |
|
| 597,300 |
|
| 725,000 |
| 4.70%, 6/1/11 |
|
| 716,199 |
|
|
|
| Pine City Hlth. Care & Hsg. Rev. Series 2006-A (North Branc Proj.): |
|
|
|
|
| 125,000 |
| 4.50%, 10/20/16 |
|
| 126,730 |
|
| 300,000 |
| 4.75%, 10/20/21 |
|
| 293,538 |
|
| 500,000 |
| Richfield Sr. Hsg. Rev. Refunding Series 2004-A (Richfield Sr. Hsg., Inc. Proj.), 5.00%, 12/1/15 |
|
| 479,965 |
|
| 2,800,000 |
| Rochester Multifamily Rev. Refunding Series 2000-A (Weatherstone Apts. Proj.) (LOC Household Fin.) (Mandatory Put 9/1/17) 6.375%, 9/1/37 (4) |
|
| 3,031,308 |
|
|
|
| Shoreview Sr. Hsg. Rev. Series 2005-A (Shoreview Sr. Residence Proj.): |
|
|
|
|
| 110,000 |
| 3.50%, 5/1/08 |
|
| 109,987 |
|
| 115,000 |
| 3.75%, 5/1/09 |
|
| 114,742 |
|
| 600,000 |
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev. Refunding Series 1998(Northway Manor Apts. Proj.) (Section 8), 5.35%, 12/1/18 |
|
| 549,648 |
|
|
|
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev.: |
|
|
|
|
| 1,445,000 |
| Series 1993 (Germain Towers Proj.) (Section 8), 5.90%, 9/1/20 |
|
| 1,339,298 |
|
| 60,000 |
| Series 1999-A (Parkview Terrace Apts. Proj.) (Section 8), 5.00%, 6/1/09 |
|
| 54,898 |
|
| 500,000 |
| St. Louis Park Multifamily Hsg. Rev. Refunding Series 1998-A (Park Ridge Apts. Proj.) (GNMA collateralized), 5.25%, 11/1/20 |
|
| 507,480 |
|
|
|
| St. Louis Park Rev. Ref. Series 2006 (Roitenberg Family Proj.): |
|
|
|
|
| 140,000 |
| 4.65%, 8/15/09 |
|
| 139,357 |
|
| 525,000 |
| 5.50%, 8/15/26 |
|
| 481,761 |
|
| 200,000 |
| St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Series 1995 |
|
|
|
|
|
|
| (Sun Cliffe Apts. Proj.) (GNMA collateralized), 5.875%, 7/1/15 |
|
| 200,886 |
|
| 1,000,000 |
| St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Ref. Series 2007-A, |
|
|
|
|
|
|
| (Marian Ctr. Proj.), 5.20%, 11/1/22 |
|
| 886,740 |
|
|
|
| St. Paul Hsg. & Redev. Auth. Rev. Series 2007-A (Rossy & Richard Schaller Proj.): |
|
|
|
|
| 400,000 |
| 5.15%, 10/1/42 |
|
| 326,532 |
|
| 450,000 |
| 4.80%, 10/1/18 |
|
| 407,075 |
|
| 3,130,000 |
| St. Paul Port Authority Multifamily Hsg. Refunding (Jackson Towers Apts. Proj.) Senior |
|
|
|
|
|
|
| Series 1998-1A (GNMA collateralized), 6.95%, 4/20/33 |
|
| 3,286,344 |
|
| 735,000 |
| Stillwater Multifamily Hsg. Rev. Series 2007 (Orleans Homes LP Proj.), 5.00%, 2/1/17 (4) |
|
| 699,132 |
|
| 120,000 |
| Victoria Sr. Hsg. Rev. Series 2003 (Chanhassen, Inc. Proj.), 5.50%, 8/1/18 |
|
| 117,403 |
|
|
|
| Washington Co. Hsg. & Redev. Auth. Governmental Hsg. Rev. Ref. Series: |
|
|
|
|
| 755,000 |
| 1999-A (Briar Pond Apts. Proj.) (GNMA collateralized), 5.50%, 2/20/14 |
|
| 760,655 |
|
| 695,000 |
| 2002 (Woodland Park Apts. Proj.) (Co. Guaranteed), 4.70%, 10/1/26 |
|
| 665,011 |
|
| 500,000 |
| Woodbury Econ. Dev. Auth. Sr. Hsg. Rev. Series 2006-B (Summerhouse Woodbury Proj.), |
|
|
|
|
|
|
| 5.75%, 6/1/41 |
|
| 449,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 61,664,689 |
|
|
|
|
|
|
|
|
|
Municipal Lease (2.3%) (5) |
|
|
|
| |||
| 200,000 |
| Andover Econ. Dev. Auth. Public Fac. Lease Rev. Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 |
|
| 214,636 |
|
| 300,000 |
| Andover Econ. Dev. Auth. Lease Rev. Prerefunded Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 |
|
| 321,954 |
|
| 40,000 |
| Anoka Co. C.O.P. Series 1998, 5.40%, 6/1/28 |
|
| 40,066 |
|
| 100,000 |
| Big Lake Econ. Dev. Auth. Public Proj. Rev. Series 2005-A, 4.20%, 2/1/10 |
|
| 101,819 |
|
| 2,032,802 |
| Carver Scott Co. Lease Purchase Agreement Series 2005, 5.00%, 8/4/20 |
|
| 1,891,563 |
|
| 50,000 |
| Chaska Econ. Dev. Auth. ISD No. 112 Sch. Facs. Lease Rev. Series 1999-A, 5.125%, 12/1/09 |
|
| 52,289 |
|
| 89,000 |
| Hennepin Co. Hsg. & Redev. Auth. Rev. Series 1993-A (Community Provider Program), 5.70%, 8/1/13 |
|
| 93,121 |
|
| 675,156 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 4.78%, 3/15/13 |
|
| 685,763 |
|
| 125,000 |
| Mountain Iron Hsg. & Redev. Auth. Rev. Series 2001-A (Arrowhead Library Sys. Proj.), 5.00%, 9/1/09 |
|
| 128,451 |
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
| 400,000 |
| St. Paul Hsg. & Redev. Auth. Lease Rev. Series 2000 (Rivercentre Pkg. Ramp Proj.), 5.70%, 5/1/08 |
|
| 400,852 |
|
|
|
| Virginia Hsg. & Redev. Auth. Hlth. Care Fac. Lease Rev. Series 2005: |
|
|
|
|
| 275,000 |
| 4.00%, 10/1/08 |
|
| 275,987 |
|
| 300,000 |
| 4.00%, 10/1/09 |
|
| 302,304 |
|
| 300,000 |
| 4.50%, 10/1/10 |
|
| 305,394 |
|
| 200,000 |
| 5.00%, 10/1/11 |
|
| 206,802 |
|
| 1,250,000 |
| 5.125%, 10/1/20 |
|
| 1,240,325 |
|
| 400,000 |
| 5.25%, 10/1/25 |
|
| 388,416 |
|
| 315,000 |
| 5.375%, 10/1/30 |
|
| 299,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6,949,556 |
|
|
|
|
|
|
|
|
|
Public Facilities (0.4%) |
|
|
|
| |||
| 50,000 |
| MN Agr. Soc. State Fair Rev. Series 2003, 5.00%, 9/15/20 |
|
| 50,069 |
|
| 250,000 |
| Rockville Econ. Dev. Auth. Pub. Proj. Lease Rev. Series 2005-A, 4.00%, 2/1/14 |
|
| 253,460 |
|
|
|
| Spring Grove Econ. Dev. Auth. Pub. Proj. Rev. Series 2006-A: |
|
|
|
|
| 135,000 |
| 4.625%, 2/1/12 |
|
| 137,880 |
|
| 255,000 |
| 5.00%, 2/1/16 |
|
| 258,652 |
|
| 125,000 |
| 5.10%, 2/1/18 |
|
| 126,129 |
|
|
|
| Victoria Recreational Facility Gross Rev. Series 2002: |
|
|
|
|
| 70,000 |
| 4.75%, 2/1/12 |
|
| 72,066 |
|
| 75,000 |
| 4.75%, 8/1/12 |
|
| 77,213 |
|
| 85,000 |
| 5.10%, 8/1/15 |
|
| 87,881 |
|
| 205,000 |
| Victoria Rec. Fac. Gross Rev. Ref. Crossover Series 2006-A, 4.55%, 8/1/17 |
|
| 187,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1,250,620 |
|
|
|
|
|
|
|
|
|
Single Family Mortgage (8.5%) |
|
|
|
| |||
|
|
| Dakota Co. Cmnty. Dev. Agy. Single Family Mtg. Rev.: |
|
|
|
|
| 2,897,892 |
| Series 2006 (FNMA, GNMA, & FHLMC backed), 5.30%, 12/1/39 (4) |
|
| 2,925,538 |
|
| 1,995,344 |
| Series 2007-A (FNMA, GNMA, & FHLMC backed), 5.125%, 12/1/40 (4) |
|
| 1,971,440 |
|
|
|
| Minneapolis- St. Paul Hsg. Fin. Bd. Single Family Mtg. Rev. (FNMA & GNMA backed): |
|
|
|
|
| 25,000 |
| Series 1997, 6.25%, 11/1/30 |
|
| 25,476 |
|
| 1,317,373 |
| Series 2005-A3, 5.10%, 4/1/27 |
|
| 1,383,136 |
|
| 3,989,221 |
| Series 2007-A1, 5.25%, 12/1/40 (4) |
|
| 3,977,054 |
|
| 1,000,000 |
| Series 2007-A2, 5.52%, 3/1/41 |
|
| 1,016,200 |
|
|
|
| MN HFA Single Family Mtg. Rev.: |
|
|
|
|
| 395,000 |
| Series 1994-E, 5.60%, 7/1/13 |
|
| 399,199 |
|
| 200,000 |
| Series 1994-E, 5.90%, 7/1/25 |
|
| 205,226 |
|
| 75,000 |
| Series 1996-D, 6.00%, 1/1/16 |
|
| 75,109 |
|
| 60,000 |
| Series 1997-A, 5.60%, 7/1/09 |
|
| 60,547 |
|
| 220,000 |
| Series 1997-I, 5.50%, 1/1/17 |
|
| 223,518 |
|
| 130,000 |
| Series 1996-H, 6.00%, 1/1/21 |
|
| 130,123 |
|
| 530,000 |
| Series 1997-D, 5.85%, 7/1/19 (4) |
|
| 543,685 |
|
| 30,000 |
| Series 1997-E, 5.90%, 7/1/29 (4) |
|
| 30,789 |
|
| 15,000 |
| Series 1997-G, 6.00%, 1/1/18 |
|
| 15,213 |
|
| 650,000 |
| Series 1998-C, 5.25%, 1/1/17 |
|
| 663,617 |
|
| 45,000 |
| Series 1998-F, 4.95%, 7/1/08 |
|
| 45,214 |
|
| 185,000 |
| Series 1998-F-1, 5.45%, 1/1/17 |
|
| 187,144 |
|
| 55,000 |
| Series 1998-F, 5.70%, 1/1/17 |
|
| 55,669 |
|
| 55,000 |
| Series 1998-A, 4.80%, 7/1/09 |
|
| 55,812 |
|
| 60,000 |
| Series 1998-A, 4.90%, 7/1/10 |
|
| 60,845 |
|
| 3,000,000 |
| Series 1999-B, 5.20%, 7/1/17 |
|
| 3,029,010 |
|
| 315,000 |
| Series 1999-B, 5.25%, 1/1/20 |
|
| 318,115 |
|
| 55,000 |
| Series 1999-H, 5.30%, 7/1/11 |
|
| 56,179 |
|
| 100,000 |
| Series 2000-A, 5.75%, 7/1/18 |
|
| 104,335 |
|
|
|
See accompanying notes to portfolios of investments on page 58. | 53 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
| 115,000 |
| Series 2000-C, 6.10%, 7/1/30 (4) |
|
| 120,306 |
|
| 320,000 |
| Series 2003-I, 4.30%, 7/1/11 (4) |
|
| 327,965 |
|
| 600,000 |
| Series 2003-I, 5.10%, 7/1/20 (4) |
|
| 601,086 |
|
| 1,000,000 |
| Series 2005-G, 4.30%, 1/1/18 |
|
| 995,520 |
|
| 1,865,000 |
| Series 2006-B, 5.00%, 1/1/37 (4) |
|
| 1,888,312 |
|
| 1,950,000 |
| Series 2006-M, 4.80%, 7/1/26 (4) |
|
| 1,810,399 |
|
| 1,000,000 |
| Series 2007-I, 4.75%, 7/1/27 |
|
| 903,830 |
|
| 2,000,000 |
| Series 2007-Q, 5.15%, 7/1/28 (4) |
|
| 1,881,260 |
|
|
|
|
|
|
| 26,086,871 |
|
Utility (4.1%) |
|
|
|
|
|
| |
| 1,000,000 |
| Chaska Elec. Rev. Ref. Series 2005-A (Generating Facs. Proj.), 5.25%, 10/1/25 |
|
| 1,001,230 |
|
| 200,000 |
| Delano Wtr. & Pwr. Cmnty. Elec. Rev. Series 2000-A, 5.30%, 12/1/09 |
|
| 200,272 |
|
|
|
| Laurentian Energy Auth. MN Cogeneration Rev. Series 2005-A: |
|
|
|
|
| 650,000 |
| 4.00%, 12/1/08 |
|
| 651,800 |
|
| 965,000 |
| 4.00%, 12/1/09 |
|
| 967,538 |
|
|
|
| MN Muni Pwr. Agy. Elec. Rev.: |
|
|
|
|
|
|
| Series 2005: |
|
|
|
|
| 1,550,000 |
| 5.00%, 10/1/30 |
|
| 1,511,172 |
|
| 4,465,000 |
| 5.00%, 10/1/35 |
|
| 4,272,246 |
|
| 700,000 |
| Series 2007, 5.25%, 10/1/27 |
|
| 709,933 |
|
| 300,000 |
| Princeton Public Utility Sys. Rev. Series 2004, 5.00%, 4/1/24 |
|
| 291,948 |
|
|
|
| Puerto Rico Commonwealth Aqueduct & Swr. Auth. Rev.: |
|
|
|
|
| 450,000 |
| Ref. Series 1995, 5.00%, 7/1/19 |
|
| 454,037 |
|
| 1,000,000 |
| Sr. Lien Series 2008-A, zero coupon, 5.92% effective yield, 7/1/19 |
|
| 839,470 |
|
| 1,250,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 |
|
| 875,000 |
|
| 125,000 |
| Virgin Islands Pub. Fin. Auth. Sr. Lien Rev. Series 2004-A, 5.25%, 10/1/21 |
|
| 125,409 |
|
| 780,000 |
| Virgin Islands Water & Power Auth. Water Sys. Rev. Ref. Series 1998, 5.50%, 7/1/17 |
|
| 789,461 |
|
|
|
|
|
|
| 12,689,516 |
|
Other Revenue Bonds (9.5%) |
|
|
|
| |||
| 830,000 |
| Brooklyn Park Econ. Dev. Auth. Tax Increment Rev. Series 2007-A (Huntington Site Dev. Proj.), |
|
| 853,091 |
|
|
|
| Columbia Heights Commercial Dev. Refunding Rev. Series 1999 (Columbia Park Properties - |
|
|
|
|
| 250,000 |
| 5.15%, 12/1/08 |
|
| 249,902 |
|
| 1,750,000 |
| 5.60%, 12/1/15 |
|
| 1,746,622 |
|
|
|
| Columbia Heights Econ. Dev. Auth. Tax Increment Rev. Series 2007 (Huset Park Area Redev. Proj.): |
|
|
|
|
| 295,000 |
| 5.00%, 2/15/17 |
|
| 285,539 |
|
| 510,000 |
| 5.20%, 2/15/22 |
|
| 470,011 |
|
| 900,000 |
| Commissioner of Iron Range Resources and Rehab. Gross Rev. (Giant’s Ridge Rec. Area Proj.), |
|
| 951,921 |
|
| 775,783 |
| Crystal Governmental Fac. Rev. Series 2006, 5.095%, 12/15/26 |
|
| 700,657 |
|
| 450,000 |
| Hopkins Hsg. & Redev. Tax Increment Rev. Series 2007 (Excelsior Crossings Proj.), 4.80%, 2/1/19 |
|
| 412,038 |
|
|
|
| Lakeville Liquor Rev. Series 2007: |
|
|
|
|
| 145,000 |
| 5.00%, 2/1/11 |
|
| 148,644 |
|
| 165,000 |
| 5.00%, 2/1/14 |
|
| 168,503 |
|
| 190,000 |
| 5.00%, 2/1/17 |
|
| 189,183 |
|
| 210,000 |
| 5.00%, 2/1/22 |
|
| 197,965 |
|
| 235,000 |
| 5.00%, 2/1/27 |
|
| 212,113 |
|
| 230,000 |
| McLeod Co. Commercial Dev. Rev. Series 2005 (Southwest MN Foundation Proj.), 5.125%, 12/1/31 |
|
| 230,635 |
|
54
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| Minneapolis Cmty. Dev. Agy. Ltd. Tax Common Bond Fund: |
|
|
|
|
| 125,000 |
| Series 1996-1 (LOC-U.S. Bank), 6.00%, 6/1/11 |
|
| 125,570 |
|
| 500,000 |
| Series 1999-1A (Discount Steel), 5.25%, 6/1/19 (4) |
|
| 503,010 |
|
| 160,000 |
| Series 2000-G2 (LOC-U.S. Bank), 6.00%, 12/1/20 |
|
| 165,350 |
|
| 270,000 |
| Minneapolis Public Hsg. Auth. Series 1997 (General Credit Energy Savings Proj.), 6.00%, 7/1/08 |
|
| 270,937 |
|
|
|
| Minneapolis Tax Increment Rev. Refunding Series 2007 (East River/Unocal Site Proj.): |
|
|
|
|
| 165,000 |
| 4.80%, 2/1/12 |
|
| 165,574 |
|
| 245,000 |
| 5.10%, 2/1/17 |
|
| 233,157 |
|
| 240,000 |
| 5.20%, 2/1/21 |
|
| 223,534 |
|
|
|
| Minneapolis Tax Increment Rev. Refunding Series 2004 (St. Anthony Falls Proj.): |
|
|
|
|
| 600,000 |
| 4.50%, 2/1/13 |
|
| 582,714 |
|
| 75,000 |
| 4.40%, 2/1/09 |
|
| 75,104 |
|
| 100,000 |
| 4.50%, 2/1/10 |
|
| 100,326 |
|
| 100,000 |
| 4.60%, 2/1/11 |
|
| 100,020 |
|
| 125,000 |
| 4.70%, 2/1/12 |
|
| 123,827 |
|
| 125,000 |
| 4.80%, 2/1/13 |
|
| 123,309 |
|
| 600,000 |
| Minneapolis Tax Increment Rev. Series 2006 (Grant Park Proj.), 5.00%, 2/1/16 |
|
| 590,046 |
|
| 1,000,000 |
| MN Agr. & Econ. Dev. Board Rev. Series 2000-B (Small Business Dev. Proj.), 7.25%, 8/1/20 (4) |
|
| 1,024,780 |
|
|
|
| Mound Hsg. & Redev. Auth. Tax Increment Rev. Ref. Series 2006 (Metroplaines Proj.): |
|
|
|
|
| 248,000 |
| 4.25%, 8/15/11 |
|
| 252,538 |
|
| 1,205,000 |
| 5.00%, 2/15/27 |
|
| 1,157,270 |
|
|
|
| St. Anthony Hsg. & Redev. Auth. Tax Increment Rev. Series 2007 (Silver Lake Vlg. Phase 1A Proj.): |
|
|
|
|
| 500,000 |
| 4.75%, 2/1/17 |
|
| 473,335 |
|
| 500,000 |
| 4.90%, 2/1/22 |
|
| 445,040 |
|
|
|
| St. Paul Hsg. & Redev. Auth. Tax Increment Rev.: |
|
|
|
|
| 155,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 5.40%, 8/1/09 |
|
| 157,415 |
|
| 100,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 5.70%, 8/1/12 |
|
| 102,927 |
|
| 800,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 6.125%, 8/1/19 |
|
| 810,472 |
|
| 1,115,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 2), 7.00%, 2/15/28 |
|
| 1,149,030 |
|
| 1,007,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 1), 7.50%, 2/15/28 |
|
| 1,031,188 |
|
| 3,000,000 |
| Series 2002-A (Upper Landing Proj.), 6.80%, 3/1/29 |
|
| 3,066,090 |
|
| 1,962,000 |
| Series 2002-B-2 (Upper Landing Proj.), 6.90%, 3/1/29 |
|
| 2,012,698 |
|
| 1,212,000 |
| Series 2002 (Drake Marble Proj.), 6.75%, 3/1/28 |
|
| 1,235,452 |
|
| 1,286,000 |
| Series 2004 (9th St. Lofts Proj.), 6.375%, 2/15/28 |
|
| 1,286,502 |
|
|
|
| St. Paul Port Auth. Lease Rev. Series 2007-1 (Regions Hosp. Parking Ramp Proj.): |
|
|
|
|
| 155,000 |
| 5.00%, 8/1/09 |
|
| 155,109 |
|
| 200,000 |
| 5.00%, 8/1/10 |
|
| 200,074 |
|
| 390,000 |
| 5.00%, 8/1/11 |
|
| 389,501 |
|
| 555,000 |
| 5.00%, 8/1/21 |
|
| 497,452 |
|
| 1,150,000 |
| 5.00%, 8/1/36 |
|
| 922,829 |
|
| 715,000 |
| St. Paul Recreational Facs. Gross Rev. Series 2005 (Highland National Proj.), 5.00%, 10/1/25 |
|
| 722,121 |
|
|
|
| Steele Co. Hlth. Care Fac. Gross Rev. Refunding Crossover Series 2005-B: |
|
|
|
|
| 475,000 |
| 4.65%, 6/1/20 |
|
| 460,375 |
|
| 300,000 |
| 5.00%, 6/1/30 |
|
| 281,994 |
|
| 120,000 |
| Steele Co. Hlth. Care Fac. Gross Rev. Unref. Bal. Series 2000 (Elderly Housing Proj.), 6.625%, 6/1/20 |
|
| 125,239 |
|
| 620,000 |
| Steele Co. Hlth. Care Fac. Gross. Rev. Prerefunded Series 2000 (Elderly Hsg. Proj.), 6.625%, 6/1/20 |
|
| 667,182 |
|
| 265,000 |
| Virgin Islands Public Fin. Auth. Rev. Gross Receipts Taxes Loan Series 1999-A, 5.625%, 10/1/10 |
|
| 273,022 |
|
|
|
|
|
|
| 29,098,937 |
|
|
|
|
|
|
|
|
|
Total municipal bonds (cost: $300,714,666) |
|
| 291,102,998 |
|
|
|
See accompanying notes to portfolios of investments on page 58. | 55 |
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| ||
Closed-End Mutual Funds (1.3%) (2) |
|
|
|
| |||
| 10,900 |
| Delaware Investments Minnesota Municipal Income Fund II |
|
| 146,605 |
|
| 107,200 |
| First American Minnesota Municipal Income Fund II |
|
| 1,439,696 |
|
| 177,200 |
| MN Municipal Income Portfolio |
|
| 2,351,444 |
|
|
|
|
|
|
|
|
|
Total closed-end mutual funds (cost: $4,011,213) |
|
| 3,937,745 |
| |||
|
|
|
|
|
|
|
|
Short-Term Securities (3.0%) (2) |
|
|
|
| |||
| 1,100,000 |
| Mpls. & St. Paul Hsg. & Redev. Auth. Hlth. Care Series 2007-A (Children’s Proj.), variable rate, 8/15/37 |
|
| 1,100,000 |
|
| 1,000,000 |
| Robbinsdale Hlth. Care Facs. Rev. Series 2003-I (North Memorial Proj.), variable rate, 5/15/33 |
|
| 1,000,000 |
|
| 930,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Series 2007-B (Rossy & Richard Shaller Proj.), variable rate, 4/1/22 |
|
| 930,000 |
|
| 6,081,621 |
| Wells Fargo Minnesota Municipal Cash Fund, 1.37% |
|
| 6,081,621 |
|
|
|
|
|
|
|
|
|
Total Short-Term Securities (cost: $9,111,621) |
|
| 9,111,621 |
| |||
|
|
|
|
|
|
|
|
Total investments in securities (cost: $313,837,499) (6) |
| $ | 304,152,364 |
|
|
|
56 | See accompanying notes to portfolios of investments on page 58. |
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
57
|
|
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|
|
| Sit Mutual Funds |
|
|
|
| March 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| (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, 2008, 2.0% 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, 2008, 10.2% 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, 2008, 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. |
| ||
|
|
|
| ||||
Cost for federal income tax purposes |
| $ | 71,694,659 |
| $ | 249,296,326 |
|
|
|
|
| ||||
| |||||||
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
| — |
| $ | 6,870,835 |
|
Gross unrealized depreciation |
|
| — |
|
| (739,792 | ) |
|
|
|
| ||||
| |||||||
Net unrealized appreciation (depreciation) |
|
| — |
| $ | 6,131,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
|
| Minnesota |
| |
|
|
|
| ||||
Cost for federal income tax purposes |
| $ | 346,193,575 |
| $ | 313,837,499 |
|
|
|
|
| ||||
| |||||||
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 928,729 |
| $ | 1,837,316 |
|
Gross unrealized depreciation |
|
| (27,081,466 | ) |
| (11,522,453 | ) |
|
|
|
| ||||
| |||||||
Net unrealized appreciation (depreciation) |
| ($ | 26,152,737 | ) | ($ | 9,685,137 | ) |
|
|
|
|
|
|
|
| (7) | These securities have been identified by the investment adviser as illiquid securities. The aggregate value of these securities at March 31, 2008, is $3,620,804 and $489,000 in the Tax-Free Income and Minnesota Tax-Free Income Funds respectively, which represents 1.1% 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. |
| (9) | At March 31, 2008, the total cost of investments purchased on a when-issued or forward-commitment basis was $317,240 for the Tax-Free Income Fund. |
58
|
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| |
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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, 2008 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
| Money |
| U.S. |
| ||
|
|
|
| ||||
Investments in securities, at identified cost |
| $ | 71,694,659 |
| $ | 249,296,326 |
|
|
|
|
| ||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 71,694,659 |
| $ | 255,427,369 |
|
Cash in bank on demand deposit |
|
| 477 |
|
| — |
|
Accrued interest and dividends receivable |
|
| 172,681 |
|
| 1,701,145 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
Receivable for principal paydowns |
|
| — |
|
| 73,121 |
|
Other receivables |
|
| — |
|
| — |
|
Receivable for Fund shares sold |
|
| — |
|
| 71,734 |
|
|
|
|
| ||||
| |||||||
Total assets |
|
| 71,867,817 |
|
| 257,273,369 |
|
|
|
|
| ||||
| |||||||
LIABILITIES |
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| 1,543,586 |
|
Payable for investment securities purchased - when issued (note 1) |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
| 41,234 |
|
Cash portion of dividends payable to shareholders |
|
| 191,764 |
|
| 831,001 |
|
Other payables |
|
| 1,478 |
|
| 13,019 |
|
Accrued investment management and advisory services fee |
|
| 32,899 |
|
| 167,473 |
|
|
|
|
| ||||
| |||||||
Total liabilities |
|
| 226,141 |
|
| 2,596,313 |
|
|
|
|
| ||||
| |||||||
Net assets applicable to outstanding capital stock |
| $ | 71,641,676 |
| $ | 254,677,056 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 71,641,676 |
| $ | 251,979,353 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| — |
|
| (3,433,340 | ) |
Unrealized appreciation (depreciation) on investments |
|
| — |
|
| 6,131,043 |
|
|
|
|
| ||||
|
| $ | 71,641,676 |
| $ | 254,677,056 |
|
|
|
|
| ||||
| |||||||
Outstanding shares |
|
| 71,645,151 |
|
| 23,315,544 |
|
|
|
|
| ||||
| |||||||
Net asset value per share of outstanding capital stock |
| $ | 1.00 |
| $ | 10.92 |
|
|
|
|
|
60
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
| Tax-Free |
| Minnesota |
| ||
|
|
|
| ||||
Investments in securities, at identified cost |
| $ | 346,193,575 |
| $ | 313,837,499 |
|
|
|
|
| ||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 320,040,838 |
| $ | 304,152,364 |
|
Cash in bank on demand deposit |
|
| 418,431 |
|
| 65,242 |
|
Accrued interest and dividends receivable |
|
| 4,795,819 |
|
| 4,809,620 |
|
Receivable for investment securities sold |
|
| 667,494 |
|
| — |
|
Receivable for principal paydowns |
|
| — |
|
| — |
|
Other receivables |
|
| 15,000 |
|
| 21,350 |
|
Receivable for Fund shares sold |
|
| 289,878 |
|
| 62,800 |
|
|
|
|
| ||||
| |||||||
Total assets |
|
| 326,227,460 |
|
| 309,111,376 |
|
|
|
|
| ||||
| |||||||
LIABILITIES |
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
Payable for investment securities purchased - when issued (note 1) |
|
| 317,240 |
|
| — |
|
Payable for investment securities purchased |
|
| 1,876,512 |
|
| — |
|
Payable for Fund shares redeemed |
|
| 36,190 |
|
| 5,819 |
|
Cash portion of dividends payable to shareholders |
|
| 1,182,009 |
|
| 1,157,307 |
|
Other payables |
|
| 12,503 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 212,719 |
|
| 210,472 |
|
|
|
|
| ||||
| |||||||
Total liabilities |
|
| 3,637,173 |
|
| 1,373,598 |
|
|
|
|
| ||||
| |||||||
Net assets applicable to outstanding capital stock |
| $ | 322,590,287 |
| $ | 307,737,778 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 380,902,002 |
| $ | 326,605,447 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| (32,158,978 | ) |
| (9,182,532 | ) |
Unrealized appreciation (depreciation) on investments |
|
| (26,152,737 | ) |
| (9,685,137 | ) |
|
|
|
| ||||
|
| $ | 322,590,287 |
| $ | 307,737,778 |
|
|
|
|
| ||||
| |||||||
Outstanding shares |
|
| 35,205,736 |
|
| 31,516,338 |
|
|
|
|
| ||||
| |||||||
Net asset value per share of outstanding capital stock |
| $ | 9.16 |
| $ | 9.76 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 66-70. | 61 |
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| One Year Ended March 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money |
| U.S. |
| ||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
Interest |
| $ | 3,143,865 |
| $ | 11,517,589 |
|
|
|
|
| ||||
Total income |
|
| 3,143,865 |
|
| 11,517,589 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 493,859 |
|
| 1,789,364 |
|
Less fees and expenses absorbed by investment adviser |
|
| (164,223 | ) |
| (99,726 | ) |
|
|
|
| ||||
Total net expenses |
|
| 329,636 |
|
| 1,689,638 |
|
|
|
|
| ||||
Net investment income |
|
| 2,814,229 |
|
| 9,827,951 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| — |
|
| 149,773 |
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| — |
|
| 7,284,028 |
|
|
|
|
| ||||
Net gain (loss) on investments |
|
| — |
|
| 7,433,801 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 2,814,229 |
| $ | 17,261,752 |
|
|
|
|
|
62
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota |
| ||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
Interest |
| $ | 18,440,392 |
| $ | 15,350,166 |
|
|
|
|
| ||||
Total income |
|
| 18,440,392 |
|
| 15,350,166 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 2,988,244 |
|
| 2,435,192 |
|
Less fees and expenses absorbed by investment adviser |
|
| (122,234 | ) |
| — |
|
|
|
|
| ||||
Total net expenses |
|
| 2,866,010 |
|
| 2,435,192 |
|
|
|
|
| ||||
Net investment income |
|
| 15,574,382 |
|
| 12,914,974 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments : |
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (3,652,467 | ) |
| 423,518 |
|
|
|
|
|
|
|
|
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| (17,246,766 | ) |
| (13,975,077 | ) |
|
|
|
| ||||
Net gain (loss) on investments |
|
| (20,899,233 | ) |
| (13,551,559 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 5,324,851 | ) | ($ | 636,585 | ) |
|
|
|
|
|
|
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 |
| $ | 2,814,229 |
| $ | 3,045,336 |
| $ | 9,827,951 |
| $ | 9,805,228 |
|
Net realized gain (loss) on investments |
|
| — |
|
| — |
|
| 149,773 |
|
| (995,910 | ) |
Net change in unrealized appreciation (depreciation) of investments |
|
| — |
|
| — |
|
| 7,284,028 |
|
| 3,040,999 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 2,814,229 |
|
| 3,045,336 |
|
| 17,261,752 |
|
| 11,850,317 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (2,814,229 | ) |
| (3,045,336 | ) |
| (9,827,951 | ) |
| (9,805,228 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total distributions |
|
| (2,814,229 | ) |
| (3,045,336 | ) |
| (9,827,951 | ) |
| (9,805,228 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 308,100,622 |
|
| 228,663,487 |
|
| 99,963,980 |
|
| 54,637,396 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 1,648,171 |
|
| 1,685,472 |
|
| 9,526,214 |
|
| 9,659,292 |
|
Payments for shares redeemed |
|
| (290,622,893 | ) |
| (247,515,120 | ) |
| (60,625,032 | ) |
| (102,358,453 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Increase (decrease) in net assets from capital share transactions |
|
| 19,125,900 |
|
| (17,166,161 | ) |
| 48,865,162 |
|
| (38,061,765 | ) |
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| 19,125,900 |
|
| (17,166,161 | ) |
| 56,298,963 |
|
| (36,016,676 | ) |
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 52,515,776 |
|
| 69,681,937 |
|
| 198,378,093 |
|
| 234,394,769 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 71,641,676 |
| $ | 52,515,776 |
| $ | 254,677,056 |
| $ | 198,378,093 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 308,100,622 |
|
| 228,663,487 |
|
| 9,322,328 |
|
| 5,218,496 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 1,648,171 |
|
| 1,685,472 |
|
| 896,508 |
|
| 922,551 |
|
Redeemed |
|
| (290,622,893 | ) |
| (247,515,120 | ) |
| (5,695,620 | ) |
| (9,768,659 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Net increase (decrease) |
|
| 19,125,900 |
|
| (17,166,161 | ) |
| 4,523,216 |
|
| (3,627,612 | ) |
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota Tax-Free |
| ||||||||
|
|
|
| ||||||||||
| |||||||||||||
|
| Year Ended |
| Year Ended |
| Year Ended |
| Year Ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 15,574,382 |
| $ | 14,462,903 |
| $ | 12,914,974 |
| $ | 11,454,764 |
|
Net realized gain (loss) on investments |
|
| (3,652,467 | ) |
| 755,205 |
|
| 423,518 |
|
| 46,712 |
|
Net change in unrealized appreciation (depreciation) of investments |
|
| (17,246,766 | ) |
| (838,265 | ) |
| (13,975,077 | ) |
| 2,372,026 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net increase (decrease) in net assets resulting from operations |
|
| (5,324,851 | ) |
| 14,379,843 |
|
| (636,585 | ) |
| 13,873,502 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (15,574,382 | ) |
| (14,462,903 | ) |
| (12,914,974 | ) |
| (11,454,764 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total distributions |
|
| (15,574,382 | ) |
| (14,462,903 | ) |
| (12,914,974 | ) |
| (11,454,764 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 105,291,583 |
|
| 112,626,064 |
|
| 132,073,267 |
|
| 94,800,905 |
|
Fund merger (note 4) |
|
| 2,508,485 |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 13,814,892 |
|
| 12,778,006 |
|
| 10,487,814 |
|
| 9,353,492 |
|
Payments for shares redeemed |
|
| (155,674,585 | ) |
| (114,719,972 | ) |
| (110,193,270 | ) |
| (80,963,635 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (34,059,625 | ) |
| 10,684,098 |
|
| 32,367,811 |
|
| 23,190,762 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total increase (decrease) in net assets |
|
| (54,958,858 | ) |
| 10,601,038 |
|
| 18,816,252 |
|
| 25,609,500 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 377,549,145 |
|
| 366,948,107 |
|
| 288,921,526 |
|
| 263,312,026 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 322,590,287 |
| $ | 377,549,145 |
| $ | 307,737,778 |
| $ | 288,921,526 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 11,077,703 |
|
| 11,588,831 |
|
| 13,204,246 |
|
| 9,310,566 |
|
Fund merger (note 4) |
|
| 260,940 |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 1,452,580 |
|
| 1,315,255 |
|
| 1,047,399 |
|
| 919,038 |
|
Redeemed |
|
| (16,413,251 | ) |
| (11,813,651 | ) |
| (11,025,230 | ) |
| (7,954,513 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Net increase (decrease) |
|
| (3,622,028 | ) |
| 1,090,435 |
|
| 3,226,415 |
|
| 2,275,091 |
|
|
|
|
|
|
|
|
|
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 no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified (except Minnesota Tax-Free Income Fund which is 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. 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: |
|
|
|
Fund |
| Investment Objective |
Money Market |
| Maximum current income with the preservation of capital and maintenance of liquidity. |
U.S. Government Securities |
| High level of current income and safety of principal. |
Tax-Free Income |
| High level of current income that is exempt from federal income tax, |
Minnesota Tax-Free Income |
| High level of current income that is exempt from federal regular income tax and Minnesota regular personal income tax, consistent with the preservation of capital. |
|
|
| Significant accounting policies followed by the Funds are summarized below: |
|
|
| 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 distributions from capital gains, if any, are included in Net Realized Gain (Loss). |
66
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|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| 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. |
|
|
| 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. |
|
|
| 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, 2008. |
|
|
| Recent Accounting Pronouncements |
| On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of SFAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The Funds do not expect any changes to their fair valuation procedures for net assets and expect the only impact of this pronouncement will be a new disclosure of methods of fair value. |
|
|
| In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), “Accounting for Uncertainty in Income Taxes.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a two-step process to recognize and measure a tax position taken or expected to be taken in a tax return. The first step is to determine whether a tax position has met the more-likely-than-not recognition threshold and the second step is to measure a tax position that meets the threshold to determine the amount of benefit to recognize. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of FIN 48 did not have a material impact on the Funds. |
|
|
| 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. The Funds have recorded in their financial statements the full benefit of their tax positions taken in connection with the RIC qualification and distribution requirements of the RIC. 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. |
|
|
| Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of March 31, 2008, no provision for income would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise returns for the 2005, 2006, and 2007 tax years for which the |
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Notes to Financial Statements (continued) |
|
|
|
|
|
|
|
|
applicable statutes of limitations have not expired remain subject to examination by the Internal Revenue Service and state departments of revenue.
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, 2008 and 2007 were as follows:
Year Ended March 31, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
|
| Long Term Capital Gain |
|
| Total |
| ||||||
Money Market Fund |
|
| $ | 2,814,229 |
|
|
|
| — |
|
|
| $ | 2,814,229 |
|
|
U.S. Government Securities Fund |
|
| $ | 9,827,951 |
|
|
|
| — |
|
|
| $ | 9,827,951 |
|
|
Tax-Free Income Fund(*) |
|
| $ | 15,574,382 |
|
|
|
| — |
|
|
| $ | 15,574,382 |
|
|
MN Tax-Free Income Fund(*) |
|
| $ | 12,914,974 |
|
|
|
| — |
|
|
| $ | 12,914,974 |
|
|
Year Ended March 31, 2007:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
|
| Long Term Capital Gain |
|
| Total |
| ||||||
Money Market Fund |
|
| $ | 3,045,336 |
|
|
|
| — |
|
|
| $ | 3,045,336 |
|
|
U.S. Government Securities Fund |
|
| $ | 9,805,228 |
|
|
|
| — |
|
|
| $ | 9,805,228 |
|
|
Tax-Free Income Fund(*) |
|
| $ | 14,462,903 |
|
|
|
| — |
|
|
| $ | 14,462,903 |
|
|
MN Tax-Free Income Fund(*) |
|
| $ | 11,454,764 |
|
|
|
| — |
|
|
| $ | 11,454,764 |
|
|
As of March 31, 2008, the components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
|
| Accumulated |
|
| Unrealized |
| ||||||
Money Market Fund |
|
| $ | 191,764 |
|
|
|
| — |
|
|
|
| — |
|
|
U.S. Government Securities Fund |
|
| $ | 831,001 |
|
|
| ($ | 3,433,340 | ) |
|
| $ | 6,131,043 |
|
|
Tax-Free Income |
|
| $ | 1,182,009 |
|
|
| ($ | 32,158,978 | ) |
|
| ($ | 26,152,737 | ) |
|
MN Tax-Free Income |
|
| $ | 1,157,307 |
|
|
| ($ | 9,182,532 | ) |
|
| ($ | 9,685,137 | ) |
|
On the statement of assets and liabilities for the U.S. Government Securities, Tax-Free Income, and Minnesota Tax-Free Income Funds, as a result of permanent book-to-tax differences, reclassification adjustments of $237,576, $232,560, and $59,532, respectively, were made to decrease additional paid-in capital and increase accumulated net realized gain (loss).
68
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
As of March 31, 2008, 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 Fund |
| $ | 3,433,340 |
|
|
|
| 2012 |
|
Tax-Free Income Fund |
| $ | 32,158,978 |
|
|
|
| 2009 |
|
Minnesota Tax-Free Income Fund |
| $ | 9,182,532 |
|
|
|
| 2009 |
|
(2) Investment Security Transactions
The cost of purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the year ended March 31, 2008, were as follows:
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| ||||
U.S. Government Securities Fund |
|
| 185,486,501 |
|
|
| 140,747,517 |
|
|
Tax-Free Income Fund |
|
| 156,541,557 |
|
|
| 187,265,993 |
|
|
Minnesota Tax-Free Income Fund |
|
| 138,044,460 |
|
|
| 111,747,679 |
|
|
For the Money Market Fund during the year ended March 31, 2008 purchases of and proceeds from sales and maturities of investment securities aggregated $1,219,043,793 and $1,203,029,385, respectively.
(3) Expenses
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Notes to Financial Statements (continued) |
|
|
|
|
|
|
|
|
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 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| First $50 Million |
| Over $50 Million |
|
| ||||
Money Market Fund |
|
| .80 | % |
|
| .60 | % |
|
|
U.S. Government Securities Fund |
|
| 1.00 | % |
|
| .80 | % |
|
|
For the period October 1, 1993, through December 31, 2008, the Adviser has voluntarily agreed to limit the _at 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 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, 2008, this voluntary fee waiver may be discontinued by the Adviser in its sole discretion.
For the period October 1, 1993, through December 31, 2008, the Adviser has voluntarily agreed to limit the _at 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, 2008, 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, 2008:
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| % Shares Outstanding |
| ||||
Money Market Fund |
|
| 36,413,780 |
|
|
| 50.8 | (*) |
|
U.S. Government Securities Fund |
|
| 556,247 |
|
|
| 2.4 |
|
|
Tax-Free Income Fund |
|
| 1,660,284 |
|
|
| 4.7 |
|
|
MN Tax-Free Income Fund |
|
| 2,206,178 |
|
|
| 7.0 |
|
|
(*) 42.2% shares owned by other Sit Mutual Funds. |
|
|
|
|
|
|
|
|
|
(4) Fund Merger
Pursuant to a plan approved by the shareholders of the Sit Florida Tax-Free Income Fund (“Florida Fund”), the Tax-Free Income Fund (“Tax-Free Fund”) acquired all of the assets of the Florida Fund in exchange for shares of common stock of the Tax-Free Fund effective July 31, 2007. The aggregate net assets of the Tax-Free Fund immediately before the acquisition were $382,493,785 and the combined net assets immediately after the acquisition were $385,002,270. In exchange for 252,786 shares and $2,508,485 of net assets in the Florida Fund, the Tax-Free Fund issued 260,940 shares. The net assets of the Florida Fund consisted of: Capital stock of $2,533,478, Undistributed net investment income of $250, Accumulated net realized loss of ($19,027), and Unrealized depreciation of ($6,216). As a result of the merger, the Tax-Free Fund acquired capital loss carryovers, which are limited by the Internal Revenue Code Section 382, and unrealized capital gains.
70
|
|
|
|
|
|
|
|
| |
| Sit Money Market Fund |
| ||
|
| |||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| 0.04 |
|
| 0.05 |
|
| 0.03 |
|
| 0.01 |
|
| 0.01 |
|
Total from operations |
|
| 0.04 |
|
| 0.05 |
|
| 0.03 |
|
| 0.01 |
|
| 0.01 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.04 | ) |
| (0.05 | ) |
| (0.03 | ) |
| (0.01 | ) |
| (0.01 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Total investment return (2) |
|
| 4.43 | % |
| 4.80 | % |
| 3.28 | % |
| 1.24 | % |
| 0.60 | % |
Net assets at end of period (000's omitted) |
| $ | 71,642 |
| $ | 52,516 |
| $ | 69,682 |
| $ | 38,141 |
| $ | 44,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) |
|
| 0.75 | % |
| 0.75 | % |
| 0.76 | % |
| 0.80 | % |
| 0.76 | % |
Expenses (with waiver) |
|
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
Net investment income (without waiver) |
|
| 4.02 | % |
| 4.45 | % |
| 3.09 | % |
| 0.92 | % |
| 0.34 | % |
Net investment income (with waiver) |
|
| 4.27 | % |
| 4.70 | % |
| 3.35 | % |
| 1.22 | % |
| 0.60 | % |
|
|
|
|
(1) | The net investment income per share is based on average shares outstanding for the period. |
|
|
(2) | 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. |
|
|
(3) | The ratio information is calculated based on average daily net assets. Total Fund expenses are limited to 0.80% of average daily net assets for the first $50 million in Fund net assets and 0.60% of average daily net assets for Fund assets exceeding $50 million. However, during the periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
71
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended March 31, |
| |||||||||||||
|
| |||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.56 |
| $ | 10.45 |
| $ | 10.62 |
| $ | 10.79 |
| $ | 10.83 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .50 |
|
| .48 |
|
| .43 |
|
| .38 |
|
| .27 |
|
Net realized and unrealized gains |
|
| .36 |
|
| .11 |
|
| (.17 | ) |
| (.17 | ) |
| (.04 | ) |
Total from operations |
|
| .86 |
|
| .59 |
|
| .26 |
|
| .21 |
|
| .23 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.50 | ) |
| (.48 | ) |
| (.43 | ) |
| (.38 | ) |
| (.27 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total Distributions |
|
| (.50 | ) |
| (.48 | ) |
| (.43 | ) |
| (.38 | ) |
| (.27 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 10.92 |
| $ | 10.56 |
| $ | 10.45 |
| $ | 10.62 |
| $ | 10.79 |
|
Total investment return (2) |
|
| 8.37 | % |
| 5.81 | % |
| 2.45 | % |
| 1.93 | % |
| 2.19 | % |
Net assets at end of period (000's omitted) |
| $ | 254,677 |
| $ | 198,378 |
| $ | 234,395 |
| $ | 258,410 |
| $ | 287,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 0.85 | % |
| 0.85 | % |
| 0.84 | % |
| 0.84 | % |
| 0.83 | % |
Expenses (with waiver) (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Net investment income (without waiver) |
|
| 4.61 | % |
| 4.56 | % |
| 3.99 | % |
| 3.47 | % |
| 2.45 | % |
Net investment income (with waiver) |
|
| 4.66 | % |
| 4.61 | % |
| 4.03 | % |
| 3.51 | % |
| 2.48 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 67.42 | % |
| 43.98 | % |
| 60.37 | % |
| 36.64 | % |
| 61.99 | % |
|
|
|
|
(1) | The net investment income per share is based on average shares outstanding for the period. |
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(2) | 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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(3) | The ratio information is calculated based on average daily net assets. Total Fund expenses are 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 periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
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(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
72
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| Sit Tax-Free Income Fund |
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| Financial Highlights |
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| Years Ended March 31, | ||||||||||||||
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| 2008 |
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| 2007 |
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| 2006 |
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| 2005 |
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| 2004 |
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Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 9.72 |
| $ | 9.72 |
| $ | 9.77 |
| $ | 9.90 |
| $ | 9.94 |
|
Operations: |
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|
|
|
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Net investment income (1) |
|
| .40 |
|
| .38 |
|
| .37 |
|
| .38 |
|
| .42 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.56 | ) |
| .00 |
|
| (.05 | ) |
| (.13 | ) |
| (.04 | ) |
Total from operations |
|
| (.16 | ) |
| .38 |
|
| .32 |
|
| .25 |
|
| .38 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.40 | ) |
| (.38 | ) |
| (.37 | ) |
| (.38 | ) |
| (.42 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.40 | ) |
| (.38 | ) |
| (.37 | ) |
| (.38 | ) |
| (.42 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 9.16 |
| $ | 9.72 |
| $ | 9.72 |
| $ | 9.77 |
| $ | 9.90 |
|
Total investment return (2) |
|
| (1.72 | %) |
| 4.00 | % |
| 3.35 | % |
| 2.54 | % |
| 3.89 | % |
Net assets at end of period (000’s omitted) |
| $ | 322,590 |
| $ | 377,549 |
| $ | 366,948 |
| $ | 353,868 |
| $ | 352,281 |
|
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Ratios (3): |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Expenses (with waiver) (4) |
|
| 0.77 | % |
| 0.77 | % |
| 0.77 | % |
| 0.77 | % |
| 0.76 | % |
Net investment income (without waiver) |
|
| 4.15 | % |
| 3.90 | % |
| 3.78 | % |
| 3.81 | % |
| 4.19 | % |
Net investment income (with waiver) |
|
| 4.18 | % |
| 3.93 | % |
| 3.81 | % |
| 3.84 | % |
| 4.23 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 42.93 | % |
| 50.67 | % |
| 32.93 | % |
| 41 29 | % |
| 32.33 | % |
|
|
(1) | The net investment income per share is based on average shares outstanding for the period. |
|
|
(2) | 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. |
|
|
(3) | The ratio information is calculated based on average daily net assets. Total Fund expenses are limited to 0.80% of average daily net assets. However, during the periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
|
|
(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
73
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| Sit Minnesota Tax-Free Income Fund |
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| Financial Highlights |
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| Years Ended March 31, |
| |||||||||||||
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| |||||||||||||||
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.21 |
| $ | 10.12 |
| $ | 10.09 |
| $ | 10.26 |
| $ | 10.22 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .43 |
|
| .42 |
|
| .41 |
|
| .44 |
|
| .46 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.45 | ) |
| .09 |
|
| .03 |
|
| (.17 | ) |
| .04 |
|
Total from operations |
|
| (.02 | ) |
| .51 |
|
| .44 |
|
| .27 |
|
| .50 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.43 | ) |
| (.42 | ) |
| (.41 | ) |
| (.44 | ) |
| (.46 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 9.76 |
| $ | 10.21 |
| $ | 10.12 |
| $ | 10.09 |
| $ | 10.26 |
|
Total investment return (2) |
|
| (0.25 | %) |
| 5.17 | % |
| 4.46 | % |
| 2.69 | % |
| 4.99 | % |
Net assets at end of period (000’s omitted) |
| $ | 307,738 |
| $ | 288,922 |
| $ | 263,312 |
| $ | 233,034 |
| $ | 217,773 |
|
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Ratios (3): |
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|
|
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|
|
|
|
|
|
|
|
Expenses (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Net investment income |
|
| 4.25 | % |
| 4.17 | % |
| 4.07 | % |
| 4.33 | % |
| 4.47 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 37.48 | % |
| 28.42 | % |
| 54.91 | % |
| 29.33 | % |
| 27.31 | % |
|
|
(1) | The net investment income per share is based on average shares outstanding for the period. |
|
|
(2) | 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. |
|
|
(3) | The ratio information is calculated based on average daily net assets. |
|
|
(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
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75
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Public Accounting Firm |
The Board of Directors and Shareholders
Sit Money Market Fund, Inc.
Sit U.S. Government Securities Fund, Inc.
Sit Mutual Funds II, Inc.:
KPMG LLP
Minneapolis, Minnesota
May 16, 2008
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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, 2007 to March 31, 2008.
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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Money Market Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $1,019.80 | $2.52 |
Hypothetical (5% return before expenses) | $1,000 | $1,022.50 | $2.52 |
78
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U.S. Government Securities Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $1,056.80 | $4.10 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.00 | $4.03 |
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Tax-Free Income Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $ 982.00 | $3.80 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.15 | $3.88 |
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Minnesota Tax-Free Income Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $ 994.30 | $3.98 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.00 | $4.03 |
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 informational 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 | ||
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| ||
Money Market Fund |
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|
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|
|
|
April 30, 2007 |
| $ | 0.00410 |
| $ | – |
May 31, 2007 |
|
| 0.00409 |
|
| – |
June 30, 2007 |
|
| 0.00385 |
|
| – |
July 31, 2007 |
|
| 0.00423 |
|
| – |
August 31, 2007 |
|
| 0.00400 |
|
| – |
September 30, 2007 |
|
| 0.00357 |
|
| – |
October 31, 2007 |
|
| 0.00405 |
|
| – |
November 30, 2007 |
|
| 0.00355 |
|
| – |
December 31, 2007 |
|
| 0.00353 |
|
| – |
January 31, 2008 |
|
| 0.00338 |
|
| – |
February 28, 2008 |
|
| 0.00271 |
|
| – |
March 31, 2008 |
|
| 0.00251 |
|
| – |
|
|
|
|
| ||
|
| $ | 0.04358 | (c) | $ | 0.00000 |
|
|
|
|
|
|
|
|
|
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Fund and Payable Date |
| Ordinary |
| Long-Term |
| ||
|
|
|
|
| |||
U.S. Government Securities Fund |
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|
|
|
|
|
|
April 30, 2007 |
| $ | 0.04474 |
| $ | – |
|
May 31, 2007 |
|
| 0.04355 |
|
| – |
|
June 30, 2007 |
|
| 0.04415 |
|
| – |
|
July 31, 2007 |
|
| 0.04318 |
|
| – |
|
August 31, 2007 |
|
| 0.04058 |
|
| – |
|
September 30, 2007 |
|
| 0.03914 |
|
| – |
|
October 31, 2007 |
|
| 0.04544 |
|
| – |
|
November 30, 2007 |
|
| 0.04284 |
|
| – |
|
December 31, 2007 |
|
| 0.03984 |
|
| – |
|
January 31, 2008 |
|
| 0.03866 |
|
| – |
|
February 28, 2008 |
|
| 0.03854 |
|
| – |
|
March 31, 2008 |
|
| 0.03947 |
|
| – |
|
|
|
|
|
| |||
|
| $ | 0.50013 | (c) | $ | 0.00000 |
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|
Tax-Free Income Fund |
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|
|
|
|
|
April 30, 2007 |
| $ | 0.03319 |
| $ | – |
May 31, 2007 |
|
| 0.03308 |
|
| – |
June 30, 2007 |
|
| 0.03215 |
|
| – |
July 31, 2007 |
|
| 0.03615 |
|
| – |
August 31, 2007 |
|
| 0.03285 |
|
| – |
September 30, 2007 |
|
| 0.03006 |
|
| – |
October 31, 2007 |
|
| 0.03525 |
|
| – |
November 30, 2007 |
|
| 0.03230 |
|
| – |
December 31, 2007 |
|
| 0.03369 |
|
| – |
January 31, 2008 |
|
| 0.03331 |
|
| – |
February 28, 2008 |
|
| 0.03184 |
|
| – |
March 31, 2008 |
|
| 0.03371 |
|
| – |
|
|
|
|
| ||
|
| $ | 0.39759 | (d) | $ | 0.00000 |
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Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
April 30, 2007 |
|
| 0.03577 |
|
| – |
|
May 31, 2007 |
|
| 0.03599 |
|
| – |
|
June 30, 2007 |
|
| 0.03530 |
|
| – |
|
July 31, 2007 |
|
| 0.03923 |
|
| – |
|
August 31, 2007 |
|
| 0.03503 |
|
| – |
|
September 30, 2007 |
|
| 0.03150 |
|
| – |
|
October 31, 2007 |
|
| 0.03721 |
|
| – |
|
November 30, 2007 |
|
| 0.03352 |
|
| – |
|
December 31, 2007 |
|
| 0.03634 |
|
| – |
|
January 31, 2008 |
|
| 0.03548 |
|
| – |
|
February 28, 2008 |
|
| 0.03401 |
|
| – |
|
March 31, 2008 |
|
| 0.03648 |
|
| – |
|
|
|
|
|
| |||
|
| $ | 0.42587 | (d) | $ | 0.00000 |
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a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
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b) | Taxable as long-term gain. |
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c) | Taxable as dividend income and does not qualify for deduction by corporations or reduced dividend income tax rate for individuals. |
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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. |
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| Sit Mutual Funds |
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The Sit Mutual Funds are a family of no-load mutual funds. The 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, and Sit Minnesota Tax-Free Income Fund (the “Funds” or individually, a “Fund”). The stock funds within the Sit Mutual Fund family are described in a Stock Funds Statement of Additional Information (SAI). The Sit Money Market Fund, Sit U.S. Government Securities Fund, the corporate issuer of the Sit Tax-Free Income Fund and the Sit Minnesota Tax-Free Income Fund have a Board of Directors and officer. 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 officer 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 Fund’s directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
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Name, Address | Position(s) | Term of | Principal Occupation(s) | Number of | Other Directorships Held |
INTERESTED DIRECTORS: |
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| ||
Eugene C. Sit (2) | Director and | Director since inception. | Chairman, Co-CEO and Co- Global CIO of Sit Investment Associates, Inc. (the “Adviser”) and Sit/Kim International Investment Associates II, LLC. (“Sit/Kim”); Director of SIA Securities Corp. (the “Distributor”), and Chairman and CEO of Sit Investment Fixed Income Advisors, Inc. (“SF”). | 12 | Corning Incorporated; Smurfit - Stone Container Corporation |
William E. Frenzel | Director | Director since 1991 or the Fund’s inception if later. | Guest Scholar at The Brookings Institution and member of several government policy committees, foundations and organizations; Director of the Adviser; Director of SF. | 12 | None. |
INDEPENDENT DIRECTORS: |
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| |||
Sidney L. Jones | Director | Director since 1988 to 1989 and since 1993 or the Fund’s inception, if later. | Lecturer, Washington Campus Consortium of 17 Universities; Senior Advisor to Lawrence and Co., Toronto, Canada (investment management). | 12 | None. |
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Name, Address | Position(s) | Term of | Principal Occupation(s) | Number of | Other Directorships Held |
Bruce C. Lueck | Director | Director since 2004 or the Fund’s inception, if later. | Consultant for Zephyr Management, L.P. (investment management) and committee member of several investment funds and foundations. President & Chief Investment Officer, Okabena Investment Services, Inc. from 1985 to 2003; Board Member, Okabena Company from 1985 to 2003. | 12 | None. |
John P. Fagan | Director | Director since 2006 or the Fund’s inception, if later. | Honorary member of Board of St. Joseph’s College in Rensselar, Indiana. | 12 | None. |
Donald W. Phillips | Director | Director of the International Fund since 1993, and since 1990 or the Fund’s inception if later for all other Funds. | Chairman and CEO of WP Global Partners Inc., 7/05 to present; CEO and CIO of WestLB Asset Management (USA) LLC, 4/00 to 4/05. | 12 | None. |
Melvin C. Bahle | Director | Director since 2005; Director Emeritus 1995 to 2005, and Director from 1984 to 1995, or the Fund’s inception date. | Director and/or officer of several foundations and charitable organizations. | 12 | None. |
| |||||
OFFICERS: | |||||
Michael C. Brilley | Senior Vice | Re-Elected by the Boards annually; Officer since 1985. | Senior Vice President and Senior Fixed Income Officer of the Adviser; Director, President and Chief Fixed- Income Officer of SF. | N/A | N/A |
Roger J. Sit (3) | Executive | Re-Elected by the Boards annually; Officer since 1998. | Director, President, Co-CEO and Co-Global CIO of the Adviser; Director, President, Co-CEO and Co-Global CIO of Sit/Kim; Director of SF. | N/A | N/A |
83
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| Sit Mutual Funds |
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| Information about Directors and Officers (Continued) |
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Name, Address, | Position(s) | Term of Office(1) | Principal Occupation(s) | Number of | Other Directorships Held |
Debra A. Sit (3) | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1994. | Vice President Bond Investments of the Adviser; Senior Vice President, Assistant Treasurer and Assistant Secretary of SF; Assistant Treasurer and Assistant Secretary of Sit/Kim. | N/A | N/A |
Bryce A. Doty | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1996. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Paul J. Junquist | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1996. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Mark H. Book | Vice President - Investments | Re-Elected by the Boards annually; Officer since 2002. | Vice President and Portfolio Manager of SF. | N/A | N/A |
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Paul E. Rasmussen | Vice | Re-Elected by the Boards annually; Officer since 1994. | Vice President, Secretary, Controller and Chief Compliance Officer of the Adviser; Vice President, Secretary, and Chief Compliance Officer of Sit/Kim and SF; President & Treasurer of the Distributor. | N/A | N/A |
Michael J. Radmer | Secretary | Re-Elected by the Boards annually; Officer since 1984. | Partner of the Funds’ general counsel, Dorsey & Whitney, LLP. | N/A | N/A |
Carla J. Rose | Vice | Re-Elected by the Boards annually; Officer since 2000. | Vice President, Administration & Deputy Controller of the Adviser; Vice President, Administration and Controller of Sit/Kim; Controller and Treasurer of SF; Vice President and Assistant Secretary of the Distributor. | N/A | N/A |
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Name, Address, | Position(s) | Term of Office(1) | Principal Occupation(s) | Number of | Other Directorships Held |
Kelly K. Boston | Assistant | Re-Elected by the Boards annually; Officer since 2000. | Staff Attorney of the Adviser; Secretary of the Distributor. | N/A | N/A |
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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. |
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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 and shareholder 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. |
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3) | Mr. Roger Sit is the son of Eugene C. Sit. Ms. Debra Sit is the daughter of Eugene C. Sit. |
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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. |
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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.
Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available 1) without charge upon request by calling the Funds at 1-800-332-5580; and 2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
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 AGREEMENTS
At their joint meeting held on October 22, 2007 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; and Sit Money Market Fund, Inc. dated November 1, 1992 (the “Agreements”).
The Boards approved the Agreements after a lengthy discussion and consideration of various factors relating to both the Boards’ selection of SIA as the investment adviser and the Boards’ approval of the fees to be paid under the Agreements.
Investment Adviser Criteria. The Directors began their analysis by discussing their criteria for determining the quality of an investment adviser. The Directors’ noted that their analysis is similar to that used by institutional investors in evaluating and selecting investment advisers. The Directors discussed several factors used to determine the overall quality of an investment adviser, including the following:
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
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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 portfolio 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.
Investment Professionals. The Directors discussed the experience, knowledge and organizational stability of SIA and its investment professionals. The Directors noted that SIA’s senior founding professionals are actively involved in the investment process and have led the organization since its inception in 1981 which has provided not only organizational stability, but a consistent portfolio management style. The senior professionals of SIA are among the most experienced professionals in the industry.
The Directors discussed the depth of SIA’s investment staff. The Directors noted that SIA has over 30 investment professionals. Given the investment products offered by SIA and the assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients, including the Funds, and to accommodate growth in the number of clients and assets under management for the near future. The Directors concluded that the depth of the investment staff, and in particular senior management and investment analysts, is actually greater than the Funds currently require at their present asset size. The Directors noted that SIA has the resources of a $7.8 billion investment firm working for the benefit of the Fund shareholders.
Investment Performance. The Directors reviewed and discussed the Funds’ investment performance on an absolute and comparable basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as fixed income funds seeking to maximize income.
Corporate Culture. The Directors discussed SIA’s corporate values to operate under the highest ethical and professional standards. SIA’s culture is set and practiced by senior management who insist that all professionals exhibit honesty and integrity. The Board noted that the firm’s values are evident in all of the services provided to the Funds.
Review of Specific Factors. The Directors continued their analysis by reviewing specific information on SIA and the Funds and specific terms of the Agreements, including the following.
Investment Performance. The Directors reviewed investment performance of each Fund for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to their stated objectives and strategies on a comparable basis with funds with similar objectives and strategies.
Fees and Expenses. The Directors noted that the Funds pay SIA a monthly fee and SIA is responsible for all of the Funds’
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| Additional Information (continued) |
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expenses except interest, brokerage commissions and transaction charges and certain extraordinary expenses. The Directors reviewed fees paid in prior years and the fees to be paid under the Agreements, both before and after the voluntary waiver of fees by SIA with respect to the Tax-Free Income Fund, U.S. Government Fund and Money Market Fund. The Directors reviewed the average and median expense ratios of mutual funds within the same investment category for each Fund. The Directors noted that each Fund’s total expense ratio compares favorably to the total expense ratios of other no-load funds within the Fund’s Morningstar category, and are lower than the average total expense ratio for the full Morningstar category. The Directors concluded that the fees paid by the Funds are reasonable and appropriate.
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.
The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA’s income with respect to the management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate.
The Directors reviewed SIA’s investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients of SIA, and recognized that the Funds’ expenses are borne by SIA. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other SIA clients were appropriate and reasonable. The Directors also concluded that SIA’s profit margin with respect to the management of the Funds was appropriate.
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.
Non-Advisory Services. The Directors considered the quality of non-advisory services which SIA provides to the Funds (and their shareholders) and the quality and depth of SIA’s non-investment personnel who provide such services. Directors concluded that the level of such services and the quality and depth of such personnel are consistent with industry standards.
Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds, and concluded that both are consistent with industry standards.
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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 $7.5 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of eleven no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
Sit Mutual Funds offer:
• 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
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, 2008
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INVESTMENT ADVISER | INDEPENDENT REGISTERED PUBLIC |
www.sitfunds.com
Sit Mutual Funds
High Income Municipal Bond Fund
Annual Report
March 31, 2008
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Sit Mutual Funds |
HIGH INCOME MUNICIPAL BOND FUND ANNUAL REPORT |
TABLE OF CONTENTS |
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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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As published in the Annual Report of the Sit Bond Funds |
Dear fellow shareholders:
Interest rates declined and the yield curve steepened as a result of multiple reductions in the targeted federal funds rate by the Federal Open Market Committee (FOMC), which were unprecedented in both their frequency and magnitude. The 3-month T-Bill yield declined the most during the past 12 months, dropping 3.71% to yield 1.32% at March 31, 2008, while the 30-year maturity U.S. Treasury yield fell by 0.54% to 4.31%. The Federal Reserve also aggressively continued to employ multiple methods of providing liquidity to banks and primary dealers to address the effects of the sub-prime mortgage crisis.
The Federal Reserve cut rates a cumulative 300 basis points from the 5.25% peak last year. The most recent action occurred on March 18th when the FOMC voted to cut the federal funds target rate by 75 basis points to 2.25%. We expect that additional cuts will be made to help minimize the economic fallout caused by the decline in investor demand for mortgage securities backed by adjustable rate mortgages made to borrowers with lower credit quality. However, we believe the Fed has done so much already that the worst of the financial crisis is likely behind us.
With respect to the U.S. economy, GDP growth slowed significantly in the first quarter of 2008 and we expect that second quarter real GDP growth will be slightly negative at -0.5%. To date, the key support factor for the U.S. economy has been the consumer sector which accounts for 70% of U.S. GDP. Changes in monthly real personal consumption expenditures (PCE) have been slowly declining since August 2007 and is on pace to fall below 2%. This trend has tracked the trend in unemployment and largely underpins our forecast for weak real U.S. GDP growth through the first half of 2008.
The current difficulties in the residential real estate market are likely to persist for some time. Though housing starts appear to be near a bottom, new houses for sale, new house prices, and existing houses for sale all appear to have further to go in the correction phase. Despite this weakness, most homes are likely worth more than they were five years ago. The weak housing market has not prevented the annual headline CPI data from showing a sharp rise as rising fuel and food prices have continued throughout the year. However, core CPI (excludes food and energy) remains relatively mild at +2.4%.
The U.S. dollar exchange rate declined to 70.3 in March, as measured by the Federal Reserve’s trade-weighted major currencies index. The decline has coincided with the worsening sub-prime mortgage crisis. As we move toward resolution of the U.S. credit crunch, the dollar is likely to rebound.
February’s budget deficit of $176 billion was slightly worse than the expectation of $170 billion, and significantly worse than the $120 billion deficit recorded in February 2007. For the first five months of fiscal 2008 through February, receipts are up just +1.3 % while outlays have increased +10.2 %.
For the fiscal 2008 budget, the Office of Management and Budget (OMB) currently projects a deficit of $410 billion which includes the recently passed economic stimulus bill.
Strategy Summary
We expect the deceleration in U.S. economic growth to most likely bottom in the first half of 2008 due to the large amount of fiscal and monetary stimulus in place. However, we are forecasting the recovery to potential GDP growth to be rather drawn out, as all of the economic fallout from the real estate correction works its way through the system. As a result, we estimate that real GDP growth will be +1.2% for calendar year 2008. Our forecast for CPI inflation in 2008 is in a range between +3.0 % and +3.5 %.
The U.S. economy and financial markets experienced unprecedented difficulties over the past nine months. Liquidity, or credit, crises are driven by fear resulting from an inability to quantify the downside risk to various investments. Likewise, liquidity crises all eventually end once enough clarity returns for investors to be able to make rational risk/reward assessments.
The uncertainty that sparked the current problems began with delinquencies for adjustable-rate subprime mortgages accelerating at rates – and reaching levels – never before witnessed, with seemingly no end in sight, making it difficult for analysts to have confidence in their valuation models. The unprecedented rise in delinquent loans and defaults was primarily due to the sharp increase in payments due as mortgage rates reset higher with the increase in short term rates that occurred last year. For example, typical adjustable-rate subprime mortgage borrowers typically would experience a $400 per month increase in their payment. Some suggest that other factors such as sloppy underwriting by lenders are to blame for the high default rates; however, the fixed-rate mortgages made with admittedly low levels of borrower documentation are defaulting at rates that are a fraction of the average default rates for adjustable-rate subprime mortgages, so the problem is more pervasive than this argument suggests.
The first signs of the effects of “reset shock” appeared in the fourth quarter of 2006. This followed the first batch of subprime adjustable-rate mortgages that had to contend with the Federal Reserve’s determined efforts to raise interest rates. The sudden and unprecedented spike in defaults halted funding for subprime borrowers by February of 2007. As a result, just as the largest waves of resets were about to occur, subprime borrowers were denied the opportunity to refinance into a fixed-rate mortgage.
Thankfully, the underlying cause of the mortgage problems is now being addressed. Specifically, the “reset shock” for all borrowers with an adjustable-rate mortgage has been effectively eliminated for mortgages resetting after April 1, 2008. Also, nearly every mortgage that reset higher in 2007
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will have its interest rate and monthly payment decline in coming months. The average initial rate of currently outstanding subprime adjustable-rate mortgages is 8.5%. The reset formula uses 6-Month LIBOR yield plus 6.0%. While 6-Month LIBOR ranged from 5.0% to 5.5% during 2007, LIBOR yields have recently been between 2.4% and 2.9%. Prime, or higher quality, borrowers with adjustable-rate mortgages have their rate reset at 2.5% over T-Bill yields which means their rate will come down to around 4.25%. Conventional mortgage rates have also dropped significantly and $10 to $15 billion of new mortgages are being originated every week. The specter of massive defaults from $400 billion of adjustable-rate subprime mortgages scheduled to reset in 2008 has been transformed into a source of economic stimulus in the second half of 2008. As a result of this and the roughly $150 billion in fiscal stimulus, we expect defaults to slow significantly over the coming months. In turn, the pressure on financial markets should lessen. The Federal Reserve has created several new liquidity facilities, including those that directly lend to primary dealers and that accept non-agency mortgages for the first time. Eventually, the Fed’s actions and the record buildup of $3.5 trillion in money market funds by investors looking for safety will seek higher yields, easing the liquidity crisis. Subprime mortgage losses will slow, but will still be large. However, the financial crisis should recede from a full-blown credit crunch where high-quality securities of all types suffer. With the return of rational valuations, market liquidity and normality will return.
We continue to focus on securities with structures that offer relatively higher current yield and more stable price characteristics. We believe our emphasis on income will continue to provide attractive relative returns for long-term investors.
Our investment approach remains focused on securities that provide incremental yield and stable credit outlooks. Despite recent underperformance, there are several factors that support our view that municipals offer a very attractive risk/reward profile in this environment, including their relative yield valuations to taxable bonds, widening credit spreads, and a dislocation in market participants. In addition, the steepness of the yield curve suggests that the absolute yields offered by longer duration bonds are particularly attractive. Continued volatility from supply and demand imbalances should continue to provide opportunities in the near term. Portfolio diversification remains a key tenet in managing risk. Fundamental factors, including slow economic growth ahead and likely higher tax rates under a new political administration, add support to the technical factors to show that municipals are currently very attractively valued.
Fixed-income investments are an important component to a well-diversified, long-term portfolio. We believe that the Sit Bond Funds, with dual objectives of high income and
stability of principal, offer attractive risk/reward profiles to complement equity holdings. We appreciate your continued interest and involvement in Sit Mutual Funds and look forward to assisting you in achieving your long-term investment goals.
With best wishes,
Eugene C. Sit, CFA
Chairman and Co-Global Chief Investment Officer
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Sit Mutual Funds |
Average Annual Total Returns for Periods Ended December 31, 2007 |
The table below shows the Fund’s 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, 2007. The index information is intended to permit you to compare the Fund’s performance to a broad measure of market performance. Index information does not reflect deductions for fees, expenses, or taxes. 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.
The 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.
The 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 Fund’s past performance, before and after taxes, is not an indication of how the Fund 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 High Income Municipal Bond Fund |
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Return Before Taxes |
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| -2.5 | % |
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| -2.5 | % |
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Return After Taxes on Distributions |
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| -2.5 | % |
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| -2.5 | % |
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Return After Taxes on Distributions and Sale of Fund Shares |
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| -1.5 | % |
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| -1.5 | % |
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Lehman Municipal Bond Index |
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| 3.4 | % |
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| 3.4 | % |
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*Inception date 12/31/06
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One Year Ended March 31, 2008 |
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Michael C. Brilley • Debra A. Sit, CFA • Paul J. Jungquist, CFA
The Fund’s inception was December 31, 2006. The Fund provided investors with a - -4.89% total return for the fiscal year ended March 31, 2008 compared to a +1.91% return for the Lehman Municipal Bond Index. As of March 31, 2008, the Fund’s 30-day SEC yield was 4.92%, up from 3.56% at March 31, 2007 and its 12-month distribution rate was 4.28%.
The municipal bond yield curve has steepened considerably over the past year, with short rates falling almost 200 basis points, while long-term yields rose 75 basis points. Aggressive easing by the Fed in the second half of 2007 and early 2008 was primarily responsible for the reduction in short-term yields, while the credit and liquidity crunch that affected all domestic fixed-income securities drove the increase in long-term yields. Deleveraging by hedge funds and the recent failures in the municipal auction-rate securities market also contributed to the steepening in the municipal yield curve. Spreads widened considerably for lower-rated and non-rated credits during the year. Municipal issuance, while slow in the first quarter of 2008, has picked up significantly as more failed auction-rate securities are converted to long-term, fixed-rate bonds. Issuance is expected to remain heavy throughout 2008. While it appears that the Fed is close to done for this easing cycle, the interest rate environment could remain challenging for the remainder of the year, as inflation concerns are growing. The Fund’s net asset value was volatile during this difficult year, falling from $10.01 at March 31, 2007 to $9.12 at March 31, 2008. The Fund experienced an increase in net assets over the year to approximately $25 million.
The Fund’s most significant investments during the year were in the other revenue (primarily tax increment financing and land-secured) sector (22%), multi-family housing (primarily senior living) sector (17%), the healthcare (primarily hospitals) sector (15%), the education (primarily charter schools) sector (11%). The Fund will maintain significant weightings in these sectors going forward, but the weightings should decrease somewhat if the Fund grows and becomes more diversified. Almost 150 credits (half of which were rated) in thirty-six states were held in the Fund as of March 31. The Fund’s overall credit quality has remained BBB.
We have lengthened the Fund’s average life duration to 5.6 years. Much of the lengthening occurred in the past six months, as we took advantage of the steep municipal yield curve and spread widening in lower investment grade bonds to lock in higher yields for the Fund. Demand should remain strong for lower-rated and non-rated bonds as after-tax yields on municipals far exceed most opportunities available in the taxable market. This market anomaly, with tax-exempt bonds yielding more than comparable maturity U.S. Treasuries, should benefit the Fund’s performance as long as it persists. The Fund will likely see a significant increase in emphasis on non-rated credits in the coming year if it grows and diversifies.
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INVESTMENT OBJECTIVE AND STRATEGY |
The Fund seeks high current income that is exempt from federal regular income 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. 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.
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PORTFOLIO SUMMARY |
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Net Asset Value 3/31/08: |
| $9.12 Per Share |
3/31/07: |
| $10.01 Per Share |
Total Net Assets: |
| $24.8 Million |
30-day SEC Yield: |
| 4.92% |
Tax Equivalent Yield: |
| 7.57%(1) |
12-Month Distribution Rate: |
| 4.28% |
Average Maturity: |
| 13.7 Years |
Duration to Estimated Avg. Life: |
| 5.6 Years(2) |
Implied Duration: |
| 5.8 Years(2) |
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(1) For individuals in the 35.0% federal tax bracket.
(2) See next page.
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PORTFOLIO STRUCTURE |
(% OF TOTAL NET ASSETS) |
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AVERAGE ANNUAL TOTAL RETURNS* | |||||||||||||||
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| One Year |
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Sit High Income Muni Bond Fund |
| -1.58 |
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| -3.33 |
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| -4.89 |
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| n/a |
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| -3.24 |
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Lehman Muni Bond Index |
| -0.61 |
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| 0.75 |
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| 1.91 |
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| n/a |
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| 2.18 |
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Lehman High Yield Muni Bond Index/5 year |
| 0.32 |
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| -0.23 |
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| 0.20 |
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| n/a |
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| 1.13 |
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Composite Index(3) |
| -0.12 |
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| 0.28 |
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| 1.08 |
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| n/a |
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| 1.68 |
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CUMULATIVE TOTAL RETURNS* | |||||||||||||||
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| Six |
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| Three |
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Sit High Income Muni Bond Fund |
| -1.58 |
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| -3.33 |
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| -4.89 |
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| n/a |
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| -4.03 |
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Lehman Muni Bond Index |
| -0.61 |
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| 0.75 |
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| 1.91 |
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| n/a |
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| 2.73 |
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Lehman High Yield Muni Bond Index/5 year |
| 0.32 |
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| -0.23 |
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| 0.20 |
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| n/a |
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| 1.42 |
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Composite Index(3) |
| -0.12 |
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| 0.28 |
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| 1.08 |
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| n/a |
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| 2.10 |
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*As of 3/31/08 **Not annualized. |
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Performance is historical and assumes reinvestment of all dividends and capital gains. Past performance is not a guarantee of future results. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman Muni Bond Index.
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/06) and held until 3/31/08 would have decreased to $9,597 in the Fund or grown to $10,273 in the Lehman Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
(% OF TOTAL NET ASSETS) |
|
|
|
|
Adviser’s | |||
AAA |
| 0.0 | % |
AA |
| 0.0 |
|
A |
| 1.9 |
|
BBB |
| 10.4 |
|
BB |
| 25.9 |
|
<BB |
| 2.7 | |
Total |
| 40.9 | % |
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
|
|
(2) | Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity. |
|
|
(3) | Composite Index (50% Lehman Municipal Bond Index and 50% Lehman High Yield Muni Bond Index/5 year). |
7
Sit High Income Municipal Bond Fund
|
March 31, 2008 |
Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds (84.9%) (2) |
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama (1.3%) |
|
|
|
|
|
|
|
|
|
|
| |
200,000 |
| Huntsville-Redstone Vlg. Spl. Care Facs. Auth. |
| 5.25 |
|
| 1/1/15 |
|
|
| 192,022 |
|
150,000 |
| Pell City Spl. Care. Rev. (Noland Hlth. Svcs.) |
| 5.25 |
|
| 12/1/27 |
|
|
| 130,539 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 322,561 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Alaska (1.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
250,000 |
| AK Indl. Dev. & Expt. Rev. (Boys & Girls Home) |
| 5.50 |
|
| 12/1/12 |
|
|
| 252,332 |
|
150,000 |
| Matanuska-Susitna Boro COP (Animal Care) (6) |
| 5.75 |
|
| 3/1/23 |
|
|
| 151,686 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 404,018 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Arizona (3.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
100,000 |
| Apache Co. G.O. (Window Rock Sch. Impt.) |
| 5.75 |
|
| 7/1/14 |
|
|
| 101,826 |
|
215,000 |
| Apache Co. G.O. (Window Rock Sch. Impt.) |
| 6.00 |
|
| 7/1/15 |
|
|
| 219,276 |
|
98,123 |
| AZ Hlth. Facs. Auth. Rev. (New AZ Family) |
| 5.25 |
|
| 1/7/27 |
|
|
| 97,230 |
|
100,000 |
| Pima Co. Indl. Dev. Rev. (Academic Success) |
| 5.38 |
|
| 7/1/22 |
|
|
| 93,695 |
|
250,000 |
| Pima Co. Indl. Rev. Ref. (Tucson Country Day Sch.) |
| 5.00 |
|
| 6/1/22 |
|
|
| 224,143 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 736,170 |
|
|
|
|
|
|
|
|
|
|
|
| ||
California (3.2%) |
|
|
|
|
|
|
|
|
|
|
| |
150,000 |
| CA Tob. Sec. Corp. Asset-Backed Sr. Rev. |
| 5.10 |
|
| 6/1/28 |
|
|
| 118,755 |
|
140,000 |
| CA Statewide Cmntys. Rev. (Lancer Educ.) |
| 5.40 |
|
| 6/1/17 |
|
|
| 139,888 |
|
100,000 |
| CA Statewide Cmntys. Spl. Tax Rev. (Orinda) |
| 6.00 |
|
| 9/1/29 |
|
|
| 94,919 |
|
200,000 |
| Dinuba Fin. Auth. Lease Rev. (Measure R Road) |
| 5.10 |
|
| 9/1/22 |
|
|
| 190,378 |
|
30,000 |
| Los Angeles Regl. Arpts. Impt. Lease Rev. (6) |
| 10.25 |
|
| 1/1/13 |
|
|
| 33,120 |
|
200,000 |
| Rialto Redev. Agy. Tax Alloc. (Merged Proj.) |
| 6.25 |
|
| 9/1/37 |
|
|
| 205,848 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 782,908 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Colorado (3.1%) |
|
|
|
|
|
|
|
|
|
|
| |
200,000 |
| Denver Hlth. & Hosp. Auth. Healthcare Rev. (4) |
| 3.16 |
|
| 12/1/33 |
|
|
| 136,000 |
|
250,000 |
| La Junta Hosp. Rev. (Ark Valley Regl. Med. Ctr.) |
| 6.10 |
|
| 4/1/24 |
|
|
| 253,255 |
|
250,000 |
| Park Creek Met. Dist. Ltd. Tax Sr. Rev. Ref. |
| 5.50 |
|
| 12/1/37 |
|
|
| 241,130 |
|
150,000 |
| Walker Field Pub. Arpt. Auth Rev. |
| 4.75 |
|
| 12/1/27 |
|
|
| 127,601 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 757,986 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Connecticut (1.2%) |
|
|
|
|
|
|
|
|
|
| ||
50,000 |
| CT DFA Pollution Ctl. Rev. Ref. (CT Light & Power) |
| 5.85 |
|
| 9/1/28 |
|
|
| 49,997 |
|
400,000 |
| Mashantucket Western Pequot Tribe Sub. Spl. Rev. (5) |
| 5.55 |
|
| 9/1/16 |
|
|
| 257,184 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 307,181 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Florida (11.9%) |
|
|
|
|
|
|
|
|
|
|
| |
250,000 |
| Alachua Co. Health Facs. Rev. (Shands Healthcare) (4) |
| 2.93 |
|
| 12/1/37 |
|
|
| 178,125 |
|
100,000 |
| Connerton West Cap. Impt. Spl. Assmnt. Rev. |
| 5.13 |
|
| 5/1/16 |
|
|
| 88,172 |
|
50,000 |
| Gateway Svcs. Spl. Assmt. (Sun City Ctr.) |
| 5.50 |
|
| 5/1/10 |
|
|
| 49,018 |
|
250,000 |
| Gramercy Farms Cmnty. Dev. Dist. Spl. Assmnt. |
| 5.10 |
|
| 5/1/14 |
|
|
| 225,857 |
|
225,000 |
| Heritage Landing Cmnty. Dev. Spl. Assmt. |
| 5.60 |
|
| 5/1/36 |
|
|
| 219,395 |
|
150,000 |
| Highlands Co. Hlth. Facs. Rev. Ref. (Adventist) |
| 5.00 |
|
| 11/15/31 |
|
|
| 138,094 |
|
250,000 |
| Hollywood Cmnty. Redev. Agy. Rev. |
| 5.63 |
|
| 3/1/24 |
|
|
| 250,922 |
|
100,000 |
| Lake Ashton II Cmnty. Dev. Dist. Cap. Impt. Rev. |
| 5.00 |
|
| 11/1/11 |
|
|
| 92,944 |
|
250,000 |
| Lee Co. Indl. Rev. Ref. (Shell Pt/Alliance Cmnty.) |
| 5.00 |
|
| 11/15/29 |
|
|
| 212,147 |
|
250,000 |
| Lee Co. Indl. Dev. Auth. Rev. (Charter Foundation) |
| 5.25 |
|
| 6/15/27 |
|
|
| 207,830 |
|
100,000 |
| Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. |
| 5.25 |
|
| 11/1/14 |
|
|
| 90,398 |
|
250,000 |
| Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. |
| 6.90 |
|
| 5/1/17 |
|
|
| 247,857 |
|
275,000 |
| Miami Beach Hlth. Facs. Hosp. Rev. (Mt. Sinai) |
| 5.38 |
|
| 11/15/28 |
|
|
| 235,521 |
|
100,000 |
| Palm Beach Co. Hlth. Rev. Ref. (Acts Retirement) |
| 5.00 |
|
| 11/15/20 |
|
|
| 92,229 |
|
140,000 |
| St. Johns Co. Indl. Dev. Auth. Rev. Ref. (Bayview) |
| 5.00 |
|
| 10/1/17 |
|
|
| 128,925 |
|
100,000 |
| Sarasota Co. Hlth. Rev. (Vlg. on the Isle) |
| 5.50 |
|
| 1/1/27 |
|
|
| 90,243 |
|
250,000 |
| Sarasota Natl. Cmnty. Spl. Assessment |
| 5.30 |
|
| 5/1/39 |
|
|
| 188,623 |
|
50,000 |
| Seminole Tribe Spl. Oblig. Rev. |
| 5.75 |
|
| 10/1/22 |
|
|
| 48,801 |
|
150,000 |
| Stoneybrook South Cmnty. Spl. Asst. Rev. |
| 5.45 |
|
| 11/1/15 |
|
|
| 135,179 |
|
25,000 |
| Waters Edge Cmnty. Dev. Dist. Cap. Impt. |
| 5.00 |
|
| 11/1/12 |
|
|
| 23,094 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 2,943,374 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Georgia (0.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
100,000 |
| Med. Ctr. Hosp. Auth. (Spring Harbor Green Isl.) |
| 5.25 |
|
| 7/1/27 |
|
|
| 80,869 |
|
30,000 |
| Private Colleges & Univ. Rev. (Mercer Univ.) |
| 5.38 |
|
| 10/1/29 |
|
|
| 28,551 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 109,420 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Guam (0.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
100,000 |
| Northern Mariana Islands G.O. |
| 5.00 |
|
| 10/1/22 |
|
|
| 89,958 |
|
|
|
|
|
|
|
|
|
|
|
| ||
| ||||||||||||
Idaho (1.3%) |
|
|
|
|
|
|
|
|
|
|
|
|
335,000 |
| ID Hsg. & Fin. Assn. Rev. (ID Arts Center Sch.) |
| 5.50 |
|
| 12/1/18 |
|
|
| 321,148 |
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois (6.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
250,000 |
| Annawan Tax Alloc. (Patriot Renewable Fuels LLC) |
| 5.63 |
|
| 1/1/18 |
|
|
| 229,547 |
|
150,000 |
| Harvey Ref. & Impt. G.O. |
| 5.50 |
|
| 12/1/27 |
|
|
| 139,596 |
|
250,000 |
| IL Fin. Auth. Rev. (Sedgebrook Inc. Fac.) |
| 5.40 |
|
| 11/15/16 |
|
|
| 233,075 |
|
165,000 |
| IL Fin. Auth. Rev. (OSF Healthcare Sys.) |
| 5.25 |
|
| 11/15/22 |
|
|
| 160,882 |
|
150,000 |
| IL Fin. Auth. Rev. (Swedish American Hosp.) |
| 5.00 |
|
| 11/15/23 |
|
|
| 151,507 |
|
205,000 |
| IL Fin. Auth. Rev. (Intl. Ice Ctr.) |
| 7.00 |
|
| 12/1/35 |
|
|
| 188,594 |
|
200,000 |
| IL Fin. Auth. Rev. (North Shore Ice Arena) |
| 6.25 |
|
| 12/1/38 |
|
|
| 195,130 |
|
55,000 |
| IL Health Facs. Auth. Rev. (Condell Med. Ctr.) |
| 5.50 |
|
| 5/15/32 |
|
|
| 51,580 |
|
100,000 |
| Manhattan Spl. Tax. (Groebe Farm-Stonegate) |
| 5.75 |
|
| 3/1/22 |
|
|
| 95,228 |
|
100,000 |
| Southwestern IL Dev. Auth. Tax. Alloc. Rev. Ref. |
| 7.00 |
|
| 10/1/22 |
|
|
| 96,137 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,541,276 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Iowa (1.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
200,000 |
| Coralville Urban Renewal Rev. Tax Increment |
| 5.00 |
|
| 6/1/47 |
|
|
| 166,988 |
|
150,000 |
| IA Fin. Auth. Sr. Hsg. Rev. (Wedum Walnut Ridge) |
| 5.00 |
|
| 12/1/14 |
|
|
| 141,451 |
|
200,000 |
| IA Fin. Auth. Sr. Living (Deerfield Ret. Cmnty.) |
| 5.50 |
|
| 11/15/27 |
|
|
| 171,656 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 480,095 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Indiana (2.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
200,000 |
| IN Hlth. & Educ. Fac. Fing. Auth. Hosp. Rev. |
| 5.50 |
|
| 3/1/22 |
|
|
| 190,100 |
|
200,000 |
| Paoli Bldg. Corp. (First Mtg.) |
| 5.00 |
|
| 1/15/32 |
|
|
| 201,954 |
|
250,000 |
| St. Joseph Co. Hosp. Auth. Health. Facs. Rev. |
| 5.25 |
|
| 2/15/28 |
|
|
| 221,495 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 613,549 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Kansas (1.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
200,000 |
| Olathe Hlth. Facs. Rev. (Olathe Med. Ctr.) |
| 5.00 |
|
| 9/1/29 |
|
|
| 192,116 |
|
300,000 |
| Sterling Educ. Facs. Rev. (Sterling College) |
| 5.25 |
|
| 11/1/24 |
|
|
| 277,740 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 469,856 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Louisiana (1.7%) |
|
|
|
|
|
|
|
|
|
|
| |
100,000 |
| Caddo Parish Sew. Dist. No. 7 Rev. Ref. |
| 6.60 |
|
| 11/1/24 |
|
|
| 104,400 |
|
215,000 |
| LA Loc. Gov. Rev. (Cap. Pjs. & Equip. Acquisition) |
| 6.55 |
|
| 9/1/25 |
|
|
| 205,331 |
|
125,000 |
| St. John Baptist Parish Rev. (Marathon Oil) |
| 5.13 |
|
| 6/1/37 |
|
|
| 109,700 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 419,431 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Maryland (1.1%) |
|
|
|
|
|
|
|
|
|
|
| |
250,000 |
| Howard Co. Retirement Cmnty. Rev. (Vantage House) |
| 5.25 |
|
| 4/1/27 |
|
|
| 213,512 |
|
50,000 |
| MD State Hlth. & Hgr. Educ. Facs. (King Farm Pres) |
| 5.00 |
|
| 1/1/17 |
|
|
| 47,511 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 261,023 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Massachusetts (1.1%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| MA State Hlth. & Educ. (Valley Regl. Hlth. Sys.) |
| 5.75 |
|
| 7/1/18 |
|
|
| 100,143 |
|
180,000 |
| MA Hlth. & Educ. Facs. Rev. (Springfield College) |
| 5.25 |
|
| 10/15/33 |
|
|
| 170,555 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 270,698 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Michigan (4.4%) |
|
|
|
|
|
|
|
|
|
|
| |
250,000 |
| Grand Traverse Academy Pub. Sch. Acad. Rev. Ref. |
| 5.00 |
|
| 11/1/22 |
|
|
| 223,007 |
|
50,000 |
| Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) |
| 5.25 |
|
| 11/15/14 |
|
|
| 50,976 |
|
100,000 |
| Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) |
| 5.38 |
|
| 11/15/36 |
|
|
| 86,850 |
|
190,000 |
| MI Educ. Facs. Oblig. Rev. Ref. (Black River Sch.) |
| 4.95 |
|
| 9/1/08 |
|
|
| 190,922 |
|
155,000 |
| MI Educ. Facs. Oblig. Rev. Ref. (Bradford) |
| 6.00 |
|
| 9/1/16 |
|
|
| 154,890 |
|
250,000 |
| MI St. Bldg. Auth. Rev. (5) |
| 5.98 |
|
| 10/15/21 |
|
|
| 121,838 |
|
40,000 |
| MI St. Hosp. Rev. Ref. (Detroit Medical) |
| 5.25 |
|
| 8/15/27 |
|
|
| 36,290 |
|
250,000 |
| MI Tob. Settlement Fin. Auth. Sr. Rev. |
| 5.13 |
|
| 6/1/22 |
|
|
| 234,518 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,099,291 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Minnesota (5.3%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Cloquet Hsg. Fac. Rev. Ref. (HADC Cloquet LLC) |
| 5.50 |
|
| 8/1/25 |
|
|
| 90,841 |
|
100,000 |
| Columbia Heights Econ. Dev. Rev. (Huset Park) |
| 5.00 |
|
| 2/15/17 |
|
|
| 96,793 |
|
100,000 |
| Cuyuna Range Hosp. Dist. Hlth. Facs. Rev. Ref. |
| 5.00 |
|
| 6/1/29 |
|
|
| 89,974 |
|
225,000 |
| Lakeville Liquor Rev. |
| 5.00 |
|
| 2/1/27 |
|
|
| 203,087 |
|
180,000 |
| North Oaks Sr. Hsg. Rev. (Presbyterian Homes) |
| 5.25 |
|
| 10/1/13 |
|
|
| 179,872 |
|
85,000 |
| St. Cloud Hsg. & Redev. MF Rev. (Germain Towers) |
| 5.90 |
|
| 9/1/20 |
|
|
| 78,782 |
|
200,000 |
| St. Paul Hsg. & Redev. Auth. MF (Marian Ctr.) |
| 5.05 |
|
| 11/1/17 |
|
|
| 187,500 |
|
165,000 |
| St. Paul Hsg. & Redev. Rev. (Cmnty. Peace Acad.) |
| 5.00 |
|
| 12/1/18 |
|
|
| 159,819 |
|
150,000 |
| St. Paul Hsg. & Redev. Auth. Rev. (US Bank Ops.) |
| 6.50 |
|
| 8/1/22 |
|
|
| 150,626 |
|
100,000 |
| St. Paul Hsg. & Redev. Rev. (Healthpartners) |
| 5.25 |
|
| 5/15/36 |
|
|
| 88,023 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,325,317 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Missouri (2.1%) |
|
|
|
|
|
|
|
|
|
| ||
140,000 |
| Joplin Indl. Dev. Auth. Rev. Ref. (Christian) |
| 5.50 |
|
| 5/15/17 |
|
|
| 131,936 |
|
250,000 |
| MO Dev. Fin. Brd. Rev. (Arnold-Rd Infrastructure) |
| 5.00 |
|
| 11/1/27 |
|
|
| 239,450 |
|
150,000 |
| St. Louis Co. Indl. Rev. (St. Andrews) |
| 5.38 |
|
| 12/1/27 |
|
|
| 147,600 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 518,986 |
|
|
|
|
|
|
|
|
|
|
|
|
9
Sit High Income Municipal Bond Fund (continued)
|
March 31, 2008 |
Portfolio of Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada (1.7%) |
|
|
|
|
|
|
|
|
|
|
|
|
215,000 |
| Clark Co. Impt. Dist. (128 Summerlin) |
| 5.00 |
|
| 2/1/20 |
|
|
| 190,430 |
|
250,000 |
| Clark Co. Poll. Ctr. Rev. Ref. (Nev. Pwr. Co.) |
| 5.30 |
|
| 10/1/11 |
|
|
| 240,817 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 431,247 |
|
|
|
|
|
|
|
|
|
|
|
| ||
New Mexico (2.0%) |
|
|
|
|
|
|
|
|
|
| ||
270,000 |
| Farmington Poll. Ctr. Rev. Ref. (San Juan) |
| 6.30 |
|
| 12/1/16 |
|
|
| 270,580 |
|
250,000 |
| NM State Hosp. Equip. Rev. Ref. (Rehoboth) |
| 5.00 |
|
| 8/15/17 |
|
|
| 225,105 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 495,685 |
|
|
|
|
|
|
|
|
|
|
|
| ||
New York (2.1%) |
|
|
|
|
|
|
|
|
|
|
| |
100,000 |
| Nassau Co. Indl. Rev. (Amsterdam at Harborside) |
| 5.88 |
|
| 1/1/18 |
|
|
| 96,786 |
|
200,000 |
| Seneca Nations Indians Cap. Impt. Auth. |
| 5.00 |
|
| 12/1/23 |
|
|
| 175,598 |
|
255,000 |
| Tobacco Settlement Fin. Corp. Rev. |
| 5.00 |
|
| 6/1/11 |
|
|
| 255,314 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 527,698 |
|
|
|
|
|
|
|
|
|
|
|
| ||
North Carolina (1.6%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| NC Med. Care. Cmmn. Rev. (Arc Projects) |
| 5.80 |
|
| 10/1/34 |
|
|
| 239,258 |
|
200,000 |
| NC Med.Care Cmnty. Retirement Facs. (Brookwood) |
| 5.25 |
|
| 1/1/32 |
|
|
| 161,424 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 400,682 |
|
|
|
|
|
|
|
|
|
|
|
| ||
North Dakota (0.4%) |
|
|
|
|
|
|
|
|
|
| ||
105,000 |
| City of Washburn (Bismarck State College Fdtn.) |
| 5.01 |
|
| 4/1/32 |
|
|
| 101,421 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio (3.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
250,000 |
| Akron Bath Copley Hosp. Rev. (Summa Hlth.) |
| 5.25 |
|
| 11/15/31 |
|
|
| 243,710 |
|
300,000 |
| Greene Co. Impt. Rev. Notes (Greene Town Ctr.) |
| 6.00 |
|
| 3/5/09 |
|
|
| 301,596 |
|
250,000 |
| Toledo-Lucas Co. Spl. Assmt. Rev. (Crocker Park) |
| 5.38 |
|
| 12/1/35 |
|
|
| 227,758 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 773,064 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Oklahoma (1.2%) |
|
|
|
|
|
|
|
|
|
|
| |
195,000 |
| Atoka Co. Hlth. Care Rev. (Atoka Mem. Hosp) |
| 5.88 |
|
| 10/1/18 |
|
|
| 184,554 |
|
100,000 |
| Grady Co. Indl. Auth. Lease Rev. |
| 6.00 |
|
| 11/1/29 |
|
|
| 100,729 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 285,283 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Oregon (0.4%) |
|
|
|
|
|
|
|
|
|
|
| |
100,000 |
| Oregon St. Hlth. Hsg. Educ. & Cultural Facs. Rev. |
| 8.00 |
|
| 11/15/26 |
|
|
| 100,076 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Pennsylvania (1.5%) |
|
|
|
|
|
|
|
|
|
| ||
50,000 |
| Grove City Area Rev. (United Cmnty Hosp.) |
| 5.25 |
|
| 7/1/12 |
|
|
| 50,049 |
|
250,000 |
| Lehigh Co. Gen. Purpose Rev. (St. Luke’s Hosp) |
| 3.07 |
|
| 8/15/42 |
|
|
| 157,500 |
|
100,000 |
| Lancaster Co. Hosp. Auth. Rev. (Brethren Vlg.) |
| 5.20 |
|
| 7/1/12 |
|
|
| 101,276 |
|
60,000 |
| Montgomery Co. Indl. Dev. Auth. (Whitemarsh) |
| 6.00 |
|
| 2/1/21 |
|
|
| 56,711 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 365,536 |
|
|
|
|
|
|
|
|
|
|
|
| ||
South Carolina (0.4%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| SC Jobs EDA Rev. Ref. & Impt. (Hampton Med.) |
| 4.75 |
|
| 11/1/13 |
|
|
| 94,025 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Tennessee (0.7%) |
|
|
|
|
|
|
|
|
|
|
| |
200,000 |
| Blount Co. Hlth. & Educ. Facs. (Asbury, Inc.) |
| 5.13 |
|
| 4/1/23 |
|
|
| 176,170 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas (8.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
200,000 |
| Abilene Hlth. Facs. Rev. (Sears Methodist) |
| 5.15 |
|
| 11/15/28 |
|
|
| 192,140 |
|
125,000 |
| Bexar Co. Hsg. Rev. Ref. (Nob Hill Apts.) |
| 5.50 |
|
| 6/1/11 |
|
|
| 116,097 |
|
180,000 |
| El Paso Hlth. Facs. Rev. (Bienvivir Sr. Hlth.) |
| 7.00 |
|
| 8/15/12 |
|
|
| 196,166 |
|
135,000 |
| Galveston Co. Muni. Util. No. 52 |
| 6.00 |
|
| 8/13/08 |
|
|
| 137,021 |
|
60,000 |
| Harris Co. Hsg. Rev. Sr. Lien (Windsor Hsg. Fdn.) |
| 6.30 |
|
| 6/1/25 |
|
|
| 60,124 |
|
250,000 |
| Lewisville Combination Contract Impt. Rev. |
| 6.75 |
|
| 10/1/32 |
|
|
| 243,610 |
|
100,000 |
| Kerrville Hlth. Facs. Rev. (Sid Peterson) |
| 5.45 |
|
| 8/15/35 |
|
|
| 89,759 |
|
200,000 |
| North TX Twy. Rev. Ref. First Tier (7) |
| 5.63 |
|
| 1/1/33 |
|
|
| 199,848 |
|
100,000 |
| Richardson Rev. Ref. & Impt. (Baylor/Richardson) |
| 5.63 |
|
| 12/1/28 |
|
|
| 94,903 |
|
50,000 |
| Tarrant Co. Cultural Educ. Rev. (C.C. Young) |
| 5.00 |
|
| 2/15/13 |
|
|
| 47,789 |
|
150,000 |
| TX Pub. Fin. Auth. Rev. (Uplift Educ.) |
| 5.35 |
|
| 12/1/17 |
|
|
| 149,318 |
|
250,000 |
| Travis Co. Hlth. Dev. Corp. (Querencia Barton Cr.) |
| 5.10 |
|
| 11/15/15 |
|
|
| 237,905 |
|
250,000 |
| Tyler Hlth. Facs. Dev. Corp. (Mother Frances) |
| 5.00 |
|
| 7/1/33 |
|
|
| 221,823 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,986,503 |
|
|
|
|
|
|
|
|
|
|
|
| ||
| ||||||||||||
Utah (1.4%) |
|
|
|
|
|
|
|
|
|
|
|
|
200,000 |
| Provo Charter Sch. Rev. (Freedom Academy Fdn.) |
| 5.50 |
|
| 6/15/37 |
|
|
| 165,640 |
|
200,000 |
| UT Assoc. Muni. Pwr. Sys. Rev. |
| 5.00 |
|
| 5/1/27 |
|
|
| 178,488 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 344,128 |
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
| |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington (2.1%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| Kalispel Tribe Indians Priority Dist. Rev. |
| 6.20 |
|
| 1/1/16 |
|
|
| 193,740 |
|
100,000 |
| Quinault Indian Nation Rev. Ref. & Impt. (Beach) |
| 5.80 |
|
| 12/1/15 |
|
|
| 98,415 |
|
150,000 |
| WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) |
| 5.25 |
|
| 1/1/17 |
|
|
| 142,463 |
|
100,000 |
| WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) |
| 5.25 |
|
| 1/1/13 |
|
|
| 97,541 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 532,159 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Virginia (1.3%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| Fairfax Co. EDA Rev. (Goodwin House) |
| 5.00 |
|
| 10/1/22 |
|
|
| 233,825 |
|
100,000 |
| VA Tobacco Settlement Fin. Corp. Senior Rev. |
| 5.00 |
|
| 6/1/47 |
|
|
| 78,914 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 312,739 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Wisconsin (1.3%) |
|
|
|
|
|
|
|
|
|
| ||
110,000 |
| Milwaukee Redev. Auth. Rev. (Academy of Learning) |
| 5.50 |
|
| 8/1/22 |
|
|
| 100,406 |
|
130,000 |
| Milwaukee Redev. Auth. (Science Ed. Consortium) |
| 5.13 |
|
| 8/1/15 |
|
|
| 130,671 |
|
100,000 |
| WI Hlth. & Educ. Facs. Auth. (Beaver Dam Hosp.) |
| 6.00 |
|
| 8/15/19 |
|
|
| 96,560 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 327,637 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total municipal bonds (cost: $22,520,061) |
|
|
|
|
|
|
|
| 21,028,299 |
| ||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed-End Mutual Funds (2.2%) (2) |
|
|
|
|
|
|
|
|
|
| ||
5,000 |
| BlackRock MuniHoldings FL. Insured Fund (MFL) |
|
|
|
|
|
|
|
| 60,550 |
|
10,000 |
| DWS Strategic Muni Income Trust (KSM) |
|
|
|
|
|
|
|
| 109,400 |
|
30,000 |
| MFS High Income Muni trust (CXE) |
|
|
|
|
|
|
|
| 159,000 |
|
20,000 |
| Morgan Stanley Muni Income Opp. Trust (OIA) |
|
|
|
|
|
|
|
| 151,800 |
|
5,000 |
| Van Kampen Trust Invsmt. Grade Muni Fund (VGM) |
|
|
|
|
|
|
|
| 68,800 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total closed-end mutual funds (cost: $574,473) |
|
|
|
|
|
|
|
| 549,550 |
| ||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities (5.5%) (2) |
|
|
|
|
|
|
|
|
|
| ||
664,368 |
| Dreyfus Tax-Exempt Cash Management Fund, 2.56% |
|
|
|
|
|
|
|
| 664,368 |
|
700,000 |
| Mpls. & St. Paul Hsg. & Redev. (Childrens Hosp.), variable rate, 8/15/37 |
|
|
|
|
|
| 700,000 |
| ||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Securities (cost: $1,364,368) |
|
|
|
|
|
|
|
| 1,364,368 |
| ||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities (cost: $24,458,901) (3) |
|
|
|
|
|
|
| $ | 22,942,217 |
| ||
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolio of investments on page 12.
11
Sit High Income Municipal Bond Fund
|
March 31, 2008 |
|
|
|
| (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, 2008, the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation based on that cost were as follows: |
|
|
|
|
|
|
|
| ||
Cost for federal income tax purposes |
| $ | 24,458,901 |
|
|
|
| ||
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
Gross unrealized appreciation |
| $ | 53,434 |
|
Gross unrealized depreciation |
|
| (1,570,118 | ) |
|
|
| ||
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | (1,516,684 | ) |
|
|
|
|
|
|
| (4) | Interest rate varies based on a predetermined schedule or to reflect current market conditions; rate shown is effective rate on March 31, 2008. |
|
|
|
| (5) | Zero coupon securities; rate shown is effective rate on purchase date. |
|
|
|
| (6) | Municipal Lease Securities (“Restricted Securities”) held by the Fund which have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. |
|
|
|
| (7) | At March 31, 2008, the total cost of investments purchased on a when-issued or forward-commitment basis was $195,668. |
12
|
|
|
Sit High Income Municipal Bond Fund |
| |
|
| |
| ||
|
|
|
|
|
|
ASSETS |
|
|
|
|
Investments in securities, at identified cost |
| $ | 24,458,901 |
|
|
|
| ||
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 22,942,217 |
|
Cash in bank on demand deposit |
|
| 1,783,387 |
|
Accrued interest and dividends receivable |
|
| 349,802 |
|
Receivable for investment securities sold |
|
| — |
|
Other receivables |
|
| — |
|
Receivable for Fund shares sold |
|
| — |
|
|
|
| ||
|
|
|
|
|
Total assets |
|
| 25,075,406 |
|
|
|
| ||
|
|
|
|
|
LIABILITIES |
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
Payable for investment securities purchased - when issued (note 1) |
|
| 195,668 |
|
Payable for investment securities purchased |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
Cash portion of dividends payable to shareholders |
|
| 86,722 |
|
Other payables |
|
| — |
|
Accrued investment management and advisory fees |
|
| 16,144 |
|
|
|
| ||
|
|
|
|
|
Total liabilities |
|
| 298,534 |
|
|
|
| ||
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 24,776,872 |
|
|
|
| ||
|
|
|
|
|
Net assets consist of: |
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 26,342,804 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| (49,248 | ) |
Unrealized appreciation (depreciation) on investments |
|
| (1,516,684 | ) |
|
|
|
|
|
|
|
| ||
|
| $ | 24,776,872 |
|
|
|
| ||
|
|
|
|
|
Outstanding shares |
|
| 2,716,673 |
|
|
|
| ||
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 9.12 |
|
|
|
|
|
|
See accompanying notes to financial statements on pages 16-17. |
|
|
|
| 13 |
|
Sit High Income Municipal Bond Fund |
|
One Year Ended March 31, 2008 |
|
|
|
|
|
Investment income: |
|
|
|
|
Income: |
|
|
|
|
Interest |
| $ | 808,249 |
|
|
|
| ||
Total income |
|
| 808,249 |
|
|
|
| ||
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
Investment management and advisory services fee |
|
| 94,018 |
|
Regulatory expenses |
|
| 38,350 |
|
Fund administration services |
|
| 43,500 |
|
Custodian fees |
|
| 2,218 |
|
|
|
| ||
Total expenses |
|
| 178,086 |
|
|
|
| ||
|
|
|
|
|
Less fees absorbed by the adviser |
|
| (44,894 | ) |
|
|
| ||
|
|
|
|
|
Total net expenses |
|
| 133,192 |
|
|
|
| ||
|
|
|
|
|
Net investment income |
|
| 675,057 |
|
|
|
| ||
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (49,248 | ) |
Net change in unrealized appreciation (or depreciation) on investments |
|
| (1,515,744 | ) |
|
|
| ||
|
|
|
|
|
Net gain (loss) on investments |
|
| (1,564,992 | ) |
|
|
| ||
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 889,935 | ) |
|
|
|
|
|
| See accompanying notes to financial statements on pages 16-17. |
|
|
14 |
|
|
|
|
Sit High Income Municipal Bond Fund |
| |
|
| |
| ||
|
|
|
|
|
|
|
|
|
|
| Year |
| Three Months |
| ||
|
|
|
| ||||
|
|
|
| ||||
|
|
|
| ||||
|
|
|
| ||||
Operations: |
|
|
|
|
|
|
|
Net investment income |
| $ | 675,057 |
| $ | 33,347 |
|
Net realized gain (loss) on investments |
|
| (49,248 | ) |
| — |
|
Net change in unrealized appreciation (depreciation) of investments |
|
| (1,515,744 | ) |
| (940 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| (889,935 | ) |
| 32,407 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
| (675,057 | ) |
| (33,347 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total distributions |
|
| (675,057 | ) |
| (33,347 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 18,313,440 |
|
| 9,577,067 |
|
Reinvested distributions |
|
| 176,522 |
|
| 3,491 |
|
Payments for shares redeemed |
|
| (1,627,708 | ) |
| (100,008 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital transactions |
|
| 16,862,254 |
|
| 9,480,550 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| 15,297,262 |
|
| 9,479,610 |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 9,479,610 |
|
| — |
|
|
|
|
| ||||
End of period |
| $ | 24,776,872 |
| $ | 9,479,610 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
| 1 ,922,409 |
|
| 956,431 |
|
Reinvested distributions |
|
| 18,480 |
|
| 348 |
|
Redeemed |
|
| (170,994 | ) |
| (10,001 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 1 ,769,895 |
|
| 946,778 |
|
|
|
|
| ||||
| |||||||
(*) Inception was 12/31/06. |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 16-17. |
|
| 15 |
|
Sit High Income Municipal Bond Fund |
|
|
|
(1) | Summary of Significant Accounting Policies |
|
|
| The Sit High Income Municipal Bond Fund (the Fund) is a no-load fund, and is registered under the Investment Company Act of 1940 (as amended) as a diversified, open-end management investment company, or series thereof. The Fund is a series fund of Sit Mutual Funds II, Inc. The Fund has 10 billion authorized shares of capital stock that have a par value of $0.001. The Fund’s objective is to seek high current income that is exempt from regular income tax. |
|
|
| Significant accounting policies followed by the Fund are summarized below: |
|
|
| Investments in Securities |
|
|
| Securities maturing more than 60 days from the valuation date 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. |
|
|
| Security transactions are accounted for on the date the securities are purchased or sold. Gains and losses are calculated on the first in – first out basis. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. |
|
|
| Delivery and payment for securities which have been purchased by the Fund 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. |
|
|
| Line of Credit |
|
|
| The Fund has a $25,000,000 committed line of credit through PNC Bank, N. A., whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary purposes. Interest is charged to the Fund based on its borrowings at a rate equal to the Federal Funds Rate plus fifty basis points (0.50%). The Fund had no borrowings outstanding during the year ended March 31, 2008. |
|
|
| Recent Accounting Pronouncements |
|
|
| On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of SFAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The Fund does not expect any changes to its fair valuation procedures for net assets and expects the only impact of this pronouncement will be a new disclosure of methods of fair value. |
|
|
| In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), “Accounting for Uncertainty in Income Taxes.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a two-step process to recognize and measure a tax position taken or expected to be taken in a tax return. The first step is to determine whether a tax position has met the more-likely-than-not recognition threshold and the second step is to measure a tax position that meets the threshold to determine the amount of benefit to recognize. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of FIN 48 did not have a material impact on the Fund. |
|
|
| Federal Taxes |
|
|
| The Fund’s 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. The Fund has recorded in its financial statements the full benefit of its tax positions taken in connection with the RIC qualification and distribution requirements of the RIC. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Fund will distribute substantially all of its net investment income and net realized gains on a calendar year basis. |
|
|
| Management has analyzed the Fund’s tax positions taken in federal tax returns for all open tax years and has concluded that as of March 31, 2008, no provision for income would be required in the Fund’s financial statements. The Fund’s federal and state income and federal excise returns for the 2007 tax year for which the applicable statutes of limitations have not expired |
16
|
|
|
|
| |
|
|
|
| remain subject to examination by the Internal Revenue Service and state departments of revenue. |
|
|
| 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, 2008 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
| Long Term Capital Gain |
| Total |
| |||
Year ended March 31, 2008 |
| $ | 675,057 |
|
| — |
| $ | 675,057 |
|
Period ended March 31, 2007 |
| $ | 33,347 |
|
| — |
| $ | 33,347 |
|
|
|
| As of March 31, 2008, the components of distributable earnings on a tax basis were as follows: |
|
|
|
|
|
Undistributed Ordinary Income |
| $ | 86,722 |
|
Accumulated Gain (Loss) |
| ($ | 49,248 | ) |
Unrealized Appreciation (Depreciation) |
| ($ | 1,516,684 | ) |
|
|
| As of March 31, 2008, for federal income tax purposes, the Fund has a capital loss carryover of $49,248, which, if not offset by subsequent gains will begin to expire in 2016. |
|
|
| Distributions |
|
|
| Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Fund’s capital stock. Distributions from net investment income are declared daily and paid monthly for the Fund. Distributions from net realized gains, if any, will be made annually for the Fund. |
|
|
| Use of Estimates |
|
|
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. Actual results could differ from those estimates. |
|
|
(2) | Investment Security Transactions |
|
|
| The cost of purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the year ended March 31, 2008, were as follows: |
|
|
|
|
|
Purchases ($) |
|
| Proceeds ($ | ) |
11,079,507 |
|
| 2,849,584 |
|
|
|
(3) | Expenses |
|
|
| Investment Adviser |
|
|
| The Fund has entered into an investment management agreement with Sit Investment Associates Inc. (SIA), under which SIA manages the Fund’s assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. The fee for investment management and advisory services is based on the average daily net assets of the Fund at the annual rate of 0.60%. The Fund is obligated to pay all of its other operating expenses (including, but not limited to, custody, regulatory, and fund administration fees). Effective with the inception of the Fund (December 31, 2006) through June 30, 2008, the Adviser will voluntarily waive fees and reimburse other fund expenses so that total operating expenses, after waiver, do not exceed 0.85% of average daily net assets. The 0.85% expense limitation is determined on an annual basis and therefore these amounts may be recovered by the Adviser over the remainder of the calendar year. Fee waivers may be modified or discontinued at any time after June 30, 2008 with the approval of the Board of Directors without further notice to investors. |
|
|
| Transactions with affiliates |
|
|
| The investment adviser, affiliates of the investment adviser, directors and officers of the Fund as a whole owned 23,122 shares of the Fund as of March 31, 2008, which represented 0.9% of all shares outstanding. |
17
|
|
Sit High Income Municipal Bond Fund | |
Financial Highlights | |
|
|
|
|
|
|
|
|
|
|
| Year |
| Three months |
| ||
|
|
|
| ||||
Net Asset Value: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.01 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
Net investment income (1) |
|
| .41 |
|
| .08 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.89 | ) |
| .01 |
|
Total from operations |
|
| (.48 | ) |
| .09 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (.41 | ) |
| (.08 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
End of period |
| $ | 9.12 |
| $ | 10.01 |
|
Total investment return (2) |
|
| (4.89 | %) |
| 0.90 | % |
Net assets at end of period (000’s omitted) |
| $ | 24,777 |
| $ | 9,480 |
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 1.14 | % |
| 4.69 | % |
Expenses (with waiver) (4) |
|
| 0.85 | % |
| 0.85 | % |
Net investment income (without waiver) |
|
| 4.01 | % |
| (0.66 | %) |
Net investment income (with waiver) |
|
| 4.30 | % |
| 3.18 | % |
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 19.38 | % |
| 0.00 | % |
|
|
|
(1) | The net investment income per share is based on average shares outstanding for the period. |
|
|
(2) | 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. |
|
|
(3) | Percentages for the period ended March 31, 2007 are adjusted to an annual rate. |
|
|
(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
18
Report of Independent Registered
Public Accounting Firm
The Board of Directors and Shareholders
Sit Mutual Funds II, Inc.:
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Sit High Income Municipal Bond Fund (a series of Sit Mutual Funds II, Inc.) (the “Fund”), as of March 31, 2008, and the related statement of operations for the year then ended, and the statements of changes in net assets, and the financial highlights for the year then ended and the period from December 31, 2006 (commencement of operations) to March 31, 2007. 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.
We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight 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, 2008, 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.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit High Income Municipal Bond Fund as of March 31, 2008, and the results of its operations for the year then ended, and the changes in its net assets and financial highlights for the year then ended and the period from December 31, 2006 (commencement of operations) to March 31, 2007 in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
May 16, 2008
19
|
Sit High Income Municipal Bond Fund |
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, 2007 to March 31, 2008.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
Sit High Income Muni Bond Fund |
| Beginning Account Value (10/1/07) |
|
| Ending Account Value (3/31/08) |
|
| Expenses Paid During Period* (10/1/07-3/31/08) |
| |||
Actual |
| $ | 1,000 |
|
| $ | 966.70 |
|
| $ | 4.17 |
|
Hypothetical (5% return before expenses) |
| $ | 1,000 |
|
| $ | 1,020.75 |
|
| $ | 4.28 |
|
‘Expenses are equal to the Fund’s Annualized expense ratio of 0.85%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period.)
20
|
|
Sit High Income Municipal Bond Fund | |
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 informational 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.
|
|
|
|
|
|
|
|
Fund and Payable Date |
| Ordinary |
| Long-Term |
| ||
|
|
| |||||
High Income Municipal Bond Fund |
|
|
|
|
| ||
|
|
|
|
|
| ||
April 30, 2007 |
| $ | 0.02932 |
| $ | — |
|
May 31, 2007 |
|
| 0.03558 |
|
| — |
|
June 30, 2007 |
|
| 0.03904 |
|
| — |
|
July 31, 2007 |
|
| 0.03685 |
|
| — |
|
August 31, 2007 |
|
| 0.03168 |
|
| — |
|
September 30, 2007 |
|
| 0.02782 |
|
| — |
|
October 31, 2007 |
|
| 0.03839 |
|
| — |
|
November 30, 2007 |
|
| 0.03520 |
|
| — |
|
December 31, 2007 |
|
| 0.03627 |
|
| — |
|
January 31, 2008 |
|
| 0.03542 |
|
| — |
|
February 28, 2008 |
|
| 0.03137 |
|
| — |
|
March 31, 2008 |
|
| 0.03508 |
|
| — |
|
|
|
|
| ||||
|
| $ | 0.41202 | (c) | $ | 0.00000 |
|
|
|
|
|
|
|
(a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
|
|
(b) | Taxable as long-term gain. |
|
|
(c) | 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. |
21
|
Sit High Income Municipal Bond Fund |
|
The Sit Mutual Funds are a family of no-load mutual funds. The Fund described in this Annual Report is the Sit High Income Municipal Bond Fund. There are four other bond funds within the Sit Mutual Fund family that are described in a separate Bond Funds Annual Report and Bonds Funds Statement of Additional Information (SAI). The seven stock funds within the Sit Mutual Fund family are described in a Stock Funds SAI. The corporate issuer of the Sit High Income Municipal Bond Fund has a Board of Directors and officers. Pursuant to Minnesota law, the Board of Directors is responsible for the management of the Fund and the establishment of the Fund’s policies. The officers of the Fund manage the day-to-day operation of the Fund. Information pertaining to the directors and officers of the Fund is set forth below. The business address, unless otherwise noted below, is that of the Fund’s investment adviser — 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Board has a separate Audit Committee. The SAI has additional information about the Fund’s directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
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Name, Address |
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| Term of |
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| Principal Occupation(s) During |
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| Number of |
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| Other Directorships |
INTERESTED DIRECTORS: |
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Eugene C. Sit (2) |
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| Director and |
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| Director since |
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| Chairman, Co-CEO and Co-CIO of Sit Investment Associates, Inc. (the “Adviser”) and Sit/Kim International Investment Associates II, LLC (“Sit/Kim”); Director of SIA Securities Corp. (the “Distributor”), and Chairman and CEO of Sit Investment Fixed Income Advisors, Inc. (“SF”). |
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| 12 |
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| Corning |
William E. Frenzel (2) |
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| Director |
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| Director since |
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| Guest Scholar at The Brookings Institution and member of several government policy committees, foundations and organizations; Director of the Adviser; Director of SF. |
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| 12 |
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| None. |
INDEPENDENT DIRECTORS: |
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Sidney L. Jones |
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| Director |
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| Director since |
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| Lecturer, Washington Campus Consortium of 17 Universities; Senior Advisor to Lawrence and Co., Toronto, Canada (investment management). |
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| 12 |
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| None. |
Bruce C. Lueck |
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| Director |
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| Director since |
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| Consultant for Zephyr Management, L.P. (investment management) and committee member of several investment funds and foundations. President & Chief Investment Officer, Okabena Investment Services, Inc. from 1985 to 2003; Board Member, Okabena Company from 1985 to 2003. |
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| 12 |
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| None. |
John P. Fagan |
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| Director |
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| Director since |
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| Honorary member of Board of St. Joseph’s College in Rensselar, Indiana. |
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| 12 |
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| None. |
Donald W. Phillips |
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| Director |
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| Director of the |
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| Chairman and CEO of WP Global Partners Inc., 7/05 to present; CEO and CIO of WestLB Asset Management (USA) LLC, 4/00 to 4/05. |
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| 12 |
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| None. |
Melvin C. Bahle |
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| Director |
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| Director since |
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| Director and/or officer of several foundations and charitable organizations. |
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| 12 |
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| None. |
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OFFICERS: |
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Name, Address, and |
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| Term of Office(1) |
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| Principal Occupation(s) During |
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| Number of |
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| Other Directorships |
Michael C. Brilley |
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| Senior Vice |
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| Re-Elected |
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| Senior Vice President and Senior Fixed Income Officer of the Adviser; Director, President and Chief Fixed-Income Officer of SF. |
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| N/A |
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| N/A |
Roger J. Sit (3) |
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| Executive |
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| Re-Elected |
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| Director, President, Co-CEO and Co-Global CIO of the Adviser; Director, President, Co-CEO and Co-Global CIO of Sit/Kim; Director of SF. |
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| N/A |
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| N/A |
Debra A. Sit (3) |
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| Vice |
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| Re-Elected |
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| Vice President – Bond Investments of the Adviser; Senior Vice President, Assistant Treasurer and Assistant Secretary of SF; Assistant Treasurer and Assistant Secretary of Sit/Kim. |
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| N/A |
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| N/A |
Bryce A. Doty |
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| Vice |
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| Re-Elected |
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| Vice President and Portfolio Manager of SF. |
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| N/A |
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| N/A |
Paul J. Junquist |
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| Vice |
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| Re-Elected |
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| Vice President and Portfolio Manager of SF. |
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| N/A |
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| N/A |
Mark H. Book |
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| Vice |
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| Re-Elected by |
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| Vice President and Portfolio Manager of SF. |
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| N/A |
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| N/A |
Paul E. Rasmussen |
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| Vice |
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| Re-Elected by |
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| Vice President, Secretary, Controller and Chief Compliance Officer of the Adviser; Vice President, Secretary, and Chief Compliance Officer of Sit/Kim and SF; President & Treasurer of the Distributor. |
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| N/A |
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| N/A |
Michael J. Radmer |
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| Secretary |
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| Re-Elected by |
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| Partner of the Funds’ general counsel, Dorsey & Whitney, LLP. |
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| N/A |
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| N/A |
Carla J. Rose |
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| Vice |
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| Re-Elected by |
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| Vice President, Administration & Deputy Controller of the Adviser; Vice President, Administration and Controller of Sit/Kim; Controller and Treasurer of SF; Vice President and Assistant Secretary of the Distributor. |
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| N/A |
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| N/A |
Kelly K. Boston |
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| Assistant |
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| Re-Elected by |
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| Staff Attorney of the Adviser; Secretary of the Distributor. |
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| N/A |
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| N/A |
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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. |
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(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. |
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(3) | Mr. Roger Sit is the son of Eugene C. Sit. Ms. Debra Sit is the daughter of Eugene C. Sit. |
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(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. |
23
Sit High Income Municipal Bond Fund
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PROXY VOTING
The Fund follows certain policies and procedures for voting proxies for securities held in the portfolio. A description of the Fund’s proxy voting polices and procedures is available without charge upon request by calling the Fund at 1-800-332-5580.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Fund files its complete schedule 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 Fund’s Form N-Q IS available on the SEC’s website at http://www.sec.gov. The Fund’s Form 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 Fund’s Forms N-Q is also available without charge upon request by calling the Fund at 1-800-332-5580.
RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT
At their meeting held on October 22, 2007 the Board of Directors of Sit Mutual Funds II, Inc. unanimously approved the investment management agreement entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mutual Funds II, Inc. (the “Agreement”) with respect to the management of the Fund. The Board approved the Agreement after a lengthy discussion and consideration of various factors relating to both the Board’s selection of SIA as the investment adviser and the Board’s approval of the fee to be paid under the Agreement.
Investment Adviser Criteria. The Directors began their analysis by discussing their criteria for determining the quality of an investment adviser. The Directors’ noted that their analysis is similar to that used by institutional investors in evaluating and selecting investment advisers. The Directors discussed several factors used to determine the overall quality of an investment adviser, including the following:
Investment Philosophy and Process. The Directors considered SIA’s philosophy of managing assets. With respect to fixed income securities generally, 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. SIA seeks 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 Fund invests primarily in municipal securities that are not rated by a nationally recognized statistical rating organization, and may invest up to 60% of its assets in municipal securities rated below investment-grade.
The Directors discussed SIA’s consistent and well-defined investment process. The fixed income portfolio 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.
Investment Professionals. The Directors discussed the experience, knowledge and organizational stability of SIA and its investment professionals. The Directors noted that SIA’s senior founding professionals are actively involved in the investment process and have led the organization since its inception in 1981 which has provided not only organizational stability, but a consistent portfolio management style. The senior professionals of SIA are among the most experienced professionals in the industry.
The Directors discussed the depth of SIA’s investment staff. The Directors noted that SIA has over 30 investment professionals. Given the investment products offered by SIA and the assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients, including the Fund, and to accommodate growth in the number of clients and assets under management for the near future. The Directors concluded that the depth of the investment staff, and in particular senior management and investment analysts, is actually greater than the Fund currently requires at its present asset size. The Directors noted that SIA has the re-
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sources of a $7.8 billion investment firm working for the benefit of the Fund shareholders.
Investment Performance. The Directors reviewed and discussed the Fund’s investment performance along with each of the Sit Mutual Funds’ investment performance on an absolute and comparable basis for the various periods discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Sit Funds, such as fixed income funds seeking to maximize income.
Corporate Culture. The Directors discussed SIA’s corporate values to operate under the highest ethical and professional standards. SIA’s culture is set and practiced by senior management who insist that all professionals exhibit honesty and integrity. The Board noted that the firm’s values are evident in all of the services provided to the Fund.
Review of Specific Factors. The Directors continued their analysis by reviewing specific information on SIA and the Fund and specific terms of the Agreement, including the following.
Investment Performance. The Directors reviewed the investment performance of each of the Sit Mutual Funds for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Sit Funds have been competitive in relation to their stated objectives and strategies on a comparable basis with funds with similar objectives and strategies.
Fees and Expenses. The Directors noted that the Fund will pay SIA a fee for its services equal to .60% per year of the Fund’s average daily net assets, and that the Fund shall bear all of its expenses. The Directors reviewed the average and median expense ratios of mutual funds within the same investment category of the Fund. The Directors noted that the Fund’s estimated total expense ratio based on projected level of total fund assets compares favorably to the total expense ratios of other no-load funds within the Fund’s Morningstar category. The Directors concluded that the fee set for the Fund is reasonable and appropriate. The Directors noted that through June 30, 2008, SIA will voluntarily waive fees and reimburse other fund expenses so that total operating expenses, after waiver, do not exceed 0.85% of average daily net assets.
The Directors discussed the anticipated benefit SIA will receive from the relationship with the Fund. The Board concluded that any benefits SIA receives from its relationship with the Fund are well within industry norms and are reflected in the amount of the fees paid by the Fund to SIA and are appropriate and reasonable.
Non-Advisory Services. The Directors considered the quality of non-advisory services which SIA provides to its active and operating Funds in the Sit Mutual Fund Family of Funds (and its shareholders) and the quality and depth of SIA’s non-investment personnel who provide such services. Directors concluded that the level of such services and the quality and depth of such personnel are consistent with industry standards.
Finally, the Directors considered the compliance staff and the regulatory history of SIA, and concluded that both are consistent with industry standards.
25
ANNUAL REPORT - Sit High Income Municipal Bond Fund
One Year Ended March 31, 2008
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INVESTMENT ADVISER |
Sit Investment Associates, Inc. |
3300 IDS Center |
80 South Eighth Street |
Minneapolis, MN 55402 |
612-334-5888 (Metro Area) |
800-332-5580 |
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DISTRIBUTOR |
SIA Securities Corp. |
3300 IDS Center |
80 South Eighth Street |
Minneapolis, MN 55402 |
612-334-5888 (Metro Area) |
800-332-5580 |
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CUSTODIAN |
PFPC Trust Company |
P. O. Box 9763 |
Providence, Rl 02940 |
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TRANSFER AGENT AND DISBURSING AGENT |
PFPC Trust Company |
P. O. Box 9763 |
Providence, Rl 02940 |
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
KPMG LLP |
90 South Seventh Street |
Suite 4200 |
Minneapolis, MN 55402 |
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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:
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| Audit |
| Audit |
| Tax |
| Other |
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Fiscal year ended March 31, 2008 |
| 18,000 |
| 0 |
| 4,095 |
| 0 |
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Fiscal year ended March 31, 2007 |
| 17,500 |
| 0 |
| 3,975 |
| 0 |
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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.
(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 $0 and $32,000, 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 30, 2008
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 30, 2008
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date May 30, 2008
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 ommittee. 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:
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| Audit |
| Audit |
| Tax |
| Other |
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Fiscal year ended March 31, 2008 |
| 16,800 |
| 0 |
| 4,095 |
| 0 |
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Fiscal year ended March 31, 2007 |
| 16,300 |
| 0 |
| 3,975 |
| 0 |
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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.
(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 $0 and $32,000, 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 30, 2008
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 30, 2008
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date May 30, 2008
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:
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| 2008 |
| 2007 |
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| Audit |
| Audit |
| Tax |
| Other |
| Audit |
| Audit |
| Tax |
| Other |
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Fiscal year ended March 31 |
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Sit Mutual Funds II, Inc. |
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Sit Tax-Free Income Fund (series A) |
| 24,000 |
| 0 |
| 4,095 |
| 0 |
| 22,000 |
| 0 |
| 3,975 |
| 0 |
|
Sit Minnesota Tax-Free Income Fund (series B) |
| 19,000 |
| 0 |
| 4,095 |
| 0 |
| 18,500 |
| 0 |
| 3,975 |
| 0 |
|
Sit High Income Municipal Bond Fund (series D) |
| 14,400 |
| 0 |
| 4,095 |
| 0 |
| 14,000 |
| 0 |
| 3,975 |
| 0 |
|
Total Mutual Funds II, Inc. |
| 57,400 |
| 0 |
| 12,285 |
| 0 |
| 54,500 |
| 0 |
| 11,925 |
| 0 |
|
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.
(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 $0 and $32,000, 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 30, 2008
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 30, 2008
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date May 30, 2008