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, 2009 |
Date of reporting period: | September 30, 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, 2009 |
Date of reporting period: | September 30, 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, 2009 |
Date of reporting period: | September 30, 2008 |
Item 1: Reports to Stockholders
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Sit Mutual Funds
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Sit Mutual Funds |
BOND FUNDS SEMI-ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments |
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| 72 |
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This document must be preceded or accompanied by a Prospectus.
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| Sit Mutual Funds | |
| Six Months Ended September 30, 2008 | |
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Dear Fellow Shareholders:
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With best wishes,
Roger J. Sit
Chairman and President
Sit Mutual Funds
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| Sit Mutual Funds |
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| Six Months Ended September 30, 2008 |
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SIT FIXED-INCOME FUNDS |
| Three |
| Six |
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U.S. Government Securities SNGVX |
| 0.99 |
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| 0.81 |
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Lehman Inter. Govt. Bond Index |
| 1.79 |
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| -0.08 |
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Tax-Free Income(1) SNTIX |
| -4.32 |
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| -3.51 |
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Lehman 5-Year Municipal Bond Index |
| 0.66 |
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| -0.15 |
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Minnesota Tax-Free Income SMTFX |
| -3.74 |
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| -2.82 |
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Lehman 5-Year Municipal Bond Index |
| 0.66 |
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| -0.15 |
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SIT MONEY MARKET FUND |
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Money Market Fund(2) SNIXX |
| 0.49 |
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| 1.05 |
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3-Month Treasury Bill |
| 0.39 |
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| 0.80 |
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*3- and 6-month returns not annualized.
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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(2) 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 7/27/07, the Tax-Free Income Fund (“Tax-Free Fund”) acquired all of the assets of Florida Tax-Free Income Fund (“Florida Fund”) and issued shareholders of Florida Fund shares of Tax-Free Fund equal in value to the shares of Florida Fund that they owned. Florida Fund was liquidated and dissolved. |
(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 9/30/08. |
(4) | For individuals in the 25%, 28%, 33% and 35% federal tax brackets, the federal tax equivalent yields are 6.84%, 7.13%, 7.66% and 7.89%, 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 7.26%, 7.57%, 8.13% and 8.38%, 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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(Continued on page 7.) |
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| AVERAGE ANNUAL RETURNS FOR PERIODS ENDED SEPTEMBER 30, 2008 |
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| One |
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| Five |
| Ten |
| Since |
| Inception |
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| 6.54 |
| 5.17 |
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| 4.24 |
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| 4.75 |
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| 6.58 |
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| 7.52 |
| 5.63 |
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| 4.00 |
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| 5.13 |
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| 6.80 |
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| -5.25 |
| -0.06 |
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| 1.43 |
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| 2.49 |
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| 5.12 |
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| 9/29/88 |
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| 3.72 |
| 3.52 |
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| 2.81 |
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| 4.25 |
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| 5.64 |
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| -3.38 |
| 1.19 |
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| 2.41 |
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| 3.26 |
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| 4.42 |
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| 12/1/93 |
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| 3.72 |
| 3.52 |
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| 2.81 |
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| 4.25 |
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| 4.69 |
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| 3.05 |
| 4.06 |
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| 3.01 |
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| 3.24 |
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| 3.78 |
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| 2.22 |
| 3.94 |
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| 3.14 |
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| 3.37 |
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| 3.95 |
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AS OF 9/30/08 |
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30-Day |
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5.05 | % |
| 4.65 | % |
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5.13 | (4) |
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5.02 | (5) |
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7-Day |
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1.78 | % |
| 1.80 | % |
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TOTAL RETURN BY CALENDAR YEAR |
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2000 |
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| 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 | % |
| 3.89 | % |
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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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| 4.02 |
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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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| -4.65 |
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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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| 1.78 |
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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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| -3.25 |
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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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| 1.78 |
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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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| 1.92 |
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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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| 1.32 |
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5
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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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The tables below show the Funds’ average annual total returns (before and after taxes) and the change in value of a broad-based market index over various periods ended December 31,2007. The index information is intended to permit you to compare each Fund’s performance to a broad measure of market performance. The after-tax returns are intended to show the impact of federal income taxes on an investment in a Fund. The highest individual federal marginal income tax rate in effect during the specified period is assumed, and the state and local tax impact is not reflected. |
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A Fund’s “Return After Taxes on Distributions” shows the effect of taxable distributions (dividends and capital gain distributions), but assumes that you still hold the Fund shares at the end of the period and so do not have any taxable gain or loss on your investment in the Fund. |
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A Fund’s “Return After Taxes on Distributions and Sale of Fund Shares” shows the effect of both taxable distributions and any taxable gain or loss that would be realized if the Fund shares were purchased at the beginning and sold at the end of the specified period. |
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The Funds’ past performance, before and after taxes, is not an indication of how the Funds will perform in the future. Your actual after-tax returns depend on your own tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future tax effects. After-tax returns are not relevant to investors who hold their Fund shares in a tax-deferred account (including a 40l(k) or IRA account). |
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Sit U.S. Government Securities Fund |
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| 1 Year |
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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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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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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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| Six Months Ended September 30, 2008 |
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| Performance Summary - Bond Funds (Continued from page 4) |
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| price depreciation. Weakness in hospital and housing sector returns reflected both their longer durations and heavy new issuance. While market volatility is likely to continue in the near term as the U.S. government seeks to restore confidence in financial markets, we believe that municipals offer a compelling risk/reward profile, with relative yield valuations in extreme territory and credit spreads at historically wide levels. Municipals continue to demonstrate relative credit quality stability in this market environment and we believe they should withstand the likely recession occurring once the liquidity crisis passes. |
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7
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| Michael C. Brilley, Senior Portfolio Manager |
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INVESTMENT OBJECTIVE AND STRATEGY |
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PORTFOLIO SUMMARY |
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Net Asset Value 9/30/08: |
| $ | 1.00 Per Share |
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3/31/08: |
| $ | 1.00 Per Share |
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Total Net Assets: |
| $ | 65.2 Million |
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PORTFOLIO STRUCTURE |
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AVERAGE ANNUAL TOTAL RETURNS* |
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| 3-Month |
| Lipper |
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3 Month** |
| 0.49 | % |
| 0.39 | % |
| 0.53 | % |
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6 Month** |
| 1.05 |
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| 0.80 |
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| N/A |
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1 Year |
| 3.05 |
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| 2.22 |
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| 3.12 |
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5 Years |
| 3.01 |
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| 3.14 |
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| 2.95 |
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10 Years |
| 3.24 |
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| 3.37 |
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| 3.22 |
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Inception |
| 3.78 |
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| 3.95 |
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| 3.74 |
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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 |
| 3.05 | % |
| 2.22 | % |
| 3.12 | % |
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5 Year |
| 15.96 |
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| 16.72 |
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| 15.65 |
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10 Year |
| 37.58 |
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| 39.31 |
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| 37.27 |
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Inception |
| 74.07 |
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| 78.29 |
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| 73.08 |
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(11/1/93) |
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*As of 9/30/08 |
| **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 9/30/08 would have grown to $17,407 in the Fund or $17,829 in the 3-Month U.S. Treasury Bill assuming reinvestment of all dividends and capital gains.
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SIT MONEY MARKET MATURITY RANGES |
9
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| Sit Money Market Fund |
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| September 30, 2008 |
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| Portfolio of Investments (Unaudited) |
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Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
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Commercial Paper (60.9%) (2) |
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Banking (4.0%) |
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403,000 |
| Bank of America Corp, |
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| 2.50%, 10/28/08 |
| 402,244 |
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| Wells Fargo and Co.: |
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1,300,000 |
| 2.41%, 10/3/08 |
| 1,299,826 |
|
900,000 |
| 2.64%, 11/13/08 |
| 897,162 |
|
|
|
|
|
| |
|
|
|
| 2,599,232 |
|
|
|
| |||
Captive Auto Finance (2.6%) |
|
|
| ||
1,706,000 |
| Toyota Motor Credit Corp., |
|
|
|
|
| 2.53%, 10/27/08 |
| 1,702,883 |
|
|
|
| |||
Captive Equipment Finance (3.5%) |
|
|
| ||
500,000 |
| Caterpillar Financial Services, |
|
|
|
|
| 2.12%, 10/6/08 |
| 499,853 |
|
|
| IBM Capital Corp: |
|
|
|
500,000 |
| 2.00%, 10/16/08 (5) |
| 499,583 |
|
700,000 |
| 1.90%, 10/24/08 (5) |
| 699,150 |
|
600,000 |
| IBM Corp., |
|
|
|
|
| 2.25%, 10/6/08 (5) |
| 599,813 |
|
|
|
|
|
| |
|
|
|
| 2,298,399 |
|
|
|
| |||
Consumer Durables (4.6%) |
|
|
| ||
|
| American Honda Finance: |
|
|
|
2,000,000 |
| 2.15%, 10/2/08 |
| 1,999,881 |
|
1,000,000 |
| 2.16%, 10/22/08 |
| 998,740 |
|
|
|
|
|
| |
|
|
|
| 2,998,621 |
|
|
|
| |||
Consumer Loan Finance (8.0%) |
|
|
| ||
|
| American Express Credit Corp., |
|
|
|
1,230,000 |
| 2.64%, 10/30/08 |
| 1,227,384 |
|
1,800,000 |
| 2.70%, 11/28/08 |
| 1,792,170 |
|
|
| American General Financial Corp.: |
|
|
|
1,000,000 |
| 2.97%, 10/23/08 (7) |
| 998,185 |
|
1,200,000 |
| 3.10%, 11/10/08 (7) |
| 1,195,867 |
|
|
|
|
|
| |
|
|
|
| 5,213,606 |
|
|
|
| |||
Consumer Non-Durables (16.4%) |
|
|
| ||
|
| Coca Cola Company: |
|
|
|
1,400,000 |
| 2.10%, 10/28/08 (5) |
| 1,397,795 |
|
1,000,000 |
| 2.10%, 10/29/08 (5) |
| 998,367 |
|
1,000,000 |
| Hershey Co., |
|
|
|
|
| 2.13%, 10/14/08 (5) |
| 999,231 |
|
|
| Kimberly Clark Intl: |
|
|
|
1,000,000 |
| 2.20%, 10/21/08 |
| 998,778 |
|
558,000 |
| 2.10%, 10/22/08 |
| 557,316 |
|
|
| Pepsico, Inc.: |
|
|
|
1,300,000 |
| 2.25%, 10/15/08 |
| 1,298,863 |
|
1,047,000 |
| 2.25%, 10/16/08 |
| 1,046,018 |
|
|
| Procter & Gamble Intl.: |
|
|
|
2,400,000 |
| 2.08%, 10/7/08 (5) |
| 2,399,168 |
|
1,022,000 |
| 2.21%, 10/9/08 (5) |
| 1,021,498 |
|
|
|
|
|
| |
|
|
|
| 10,717,034 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Consumer Services (2.7%) |
|
|
| ||
1,800,000 |
| United Parcel Service, |
|
|
|
|
| 1.78%, 10/9/08 (5) |
| 1,799,288 |
|
|
|
| |||
Diversified Finance (3.7%) |
|
|
| ||
1,400,000 |
| GE Capital Corp., |
|
|
|
|
| 1.75%, 10/1/08 |
| 1,400,000 |
|
1,000,000 |
| GE Capital Services, |
|
|
|
|
| 2.58%, 11/3/08 |
| 997,635 |
|
|
|
|
|
| |
|
|
|
| 2,397,635 |
|
|
|
| |||
Energy (8.4%) |
|
|
| ||
|
| Chevron Funding Corp.: |
|
|
|
1,500,000 |
| 2.15%, 10/6/08 |
| 1,499,552 |
|
900,000 |
| 2.20%, 10/15/08 |
| 899,230 |
|
|
| Conoco Quatar, Inc.: |
|
|
|
2,110,000 |
| 2.15%, 10/10/08 (5) |
| 2,108,866 |
|
1,000,000 |
| 2.21%, 11/14/08 (5) |
| 997,299 |
|
|
|
|
|
| |
|
|
|
| 5,504,947 |
|
|
|
| |||
Financial Services (3.9%) |
|
|
| ||
|
| Citigroup Funding, Inc.: |
|
|
|
1,116,000 |
| 2.68%, 10/14/08 |
| 1,114,920 |
|
1,400,000 |
| 2.69%, 10/17/08 |
| 1,398,326 |
|
|
|
|
|
| |
|
|
|
| 2,513,246 |
|
|
|
| |||
Health Technology (3.1%) |
|
|
| ||
2,000,000 |
| Pfizer, Inc., |
|
|
|
|
| 1.15%, 10/7/08 (5) |
| 1,999,617 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total Commercial Paper |
| 39,744,508 |
| ||
|
|
|
|
| |
(cost: $39,744,508) |
|
|
| ||
|
|
|
| ||
Corporate Bonds (4.4%) (2) |
|
|
| ||
381,000 |
| Bank of America Corp, |
|
|
|
|
| 5.88%, 2/15/09 |
| 384,871 |
|
1,000,000 |
| Caterpillar Financial Services Corp., |
|
|
|
|
| 3.45%, 1/15/09 |
| 998,903 |
|
1,500,000 |
| Toyota Motor Credit Corp., |
|
|
|
|
| 5.50%, 12/15/08 |
| 1,506,417 |
|
|
|
|
|
| |
|
|
|
| 2,890,191 |
|
|
|
|
|
| |
(cost: $2,890,191) |
|
|
| ||
|
|
|
| ||
Federal Agency Issues (34.4%) (2) |
|
|
| ||
563,000 |
| Federal Farm Credit Bank, |
|
|
|
|
| 2.00%, 10/9/08 |
| 562,750 |
|
|
| Federal Home Loan Bank: |
|
|
|
350,000 |
| 0.50%, 10/6/08 |
| 349,976 |
|
1,000,000 |
| 2.40%, 10/24/08 |
| 998,466 |
|
2,000,000 |
| 2.45%, 4/21/09 |
| 2,000,000 |
|
1,500,000 |
| 2.35%, 4/21/09 |
| 1,500,000 |
|
1,500,000 |
| 2.63%, 4/30/09 |
| 1,500,000 |
|
10
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
|
| Federal Home Loan Mortgage Corp: |
| ||
1,000,000 |
| 0.95%, 10/14/08 |
| 999,657 |
|
2,500,000 |
| 2.21%, 10/16/08 |
| 2,497,698 |
|
2,500,000 |
| 2.20%, 10/17/08 |
| 2,497,555 |
|
700,000 |
| 2.30%, 10/31/08 |
| 698,658 |
|
1,000,000 |
| 2.45%, 4/9/09 |
| 1,000,000 |
|
|
| Federal National Mortgage Association: |
| ||
448,000 |
| 1.92%, 10/1/08 |
| 448,000 |
|
707,000 |
| 2.15%, 10/6/08 |
| 706,789 |
|
800,000 |
| 2.00%, 10/6/08 |
| 799,778 |
|
2,000,000 |
| 2.15%, 10/8/08 |
| 1,999,164 |
|
250,000 |
| 0.50%, 10/10/08 |
| 249,969 |
|
1,000,000 |
| 4.50%, 10/15/08 |
| 1,001,353 |
|
945,000 |
| 1.00%, 10/15/08 |
| 944,632 |
|
1,195,000 |
| 2.30%, 10/20/08 |
| 1,193,549 |
|
500,000 |
| 2.48%, 10/28/08 |
| 499,070 |
|
|
|
|
|
| |
|
|
|
| 22,447,064 |
|
|
|
|
|
| |
(cost: $22,447,064) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $65,081,763) (6) |
| $ 65,081,763 |
| ||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 11
|
|
|
|
|
|
|
|
| |
| Six Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers, Michael C. Brilley and Bryce A. Doty, CFA |
|
|
|
|
|
|
|
|
During the six-month period, the Fund benefited from positive returns from mortgage pass-through securities, as the federal government’s actions to support Fannie Mae and Freddie Mac increased investor confidence in traditional mortgage bonds. Returns also continue to be positively impacted by the income advantage provided by mortgage pass-through securities. The Fund’s positions in U.S. Government bonds detracted from performance for the six-month period, as U.S. Treasury securities were at inflated prices at the beginning of the period due to market concern over the failure of investment bank Bear Stearns.
Over the last six months, we have seen weakness in the U.S. housing market spill over into virtually all areas of our nation’s economy. Investors have withdrawn from financial markets at a record pace, and banks, already hampered by growing delinquent loan portfolios, have become unwilling to lend to each other at any level due to fears that the counterparty to a loan may not be around to pay it back. Throughout this period of market turmoil, the federal government identified the marketplace for high quality mortgage loans as a priority in terms of maintaining market stability and as such, mortgage providers Fannie Mae and Freddie Mac, already federally chartered government agencies, received a significant boost in federal support during July. This federal support reduces the potential for the Fund’s investments in government agency mortgage securities to experience principal loss going forward. We expect the high levels of income produced by these mortgage pass-through securities will provide a highly attractive alternative to other short term fixed-income investments, which has consistently been the case since the Fund’s inception.
|
INVESTMENT OBJECTIVE AND STRATEGY |
Agency mortgage securities and U.S. Treasury securities will be the principal holdings in the Fund. The mortgage securities that the Fund will purchase consist of pass-through securities including those issued by Government National Mortgage Association (GNMA), Federal National Mortgage Asociation (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC).
|
PORTFOLIO SUMMARY |
|
|
|
|
Net Asset Value 9/30/08: |
| $ | 10.75 Per Share |
3/31/08: |
| $ | 10.92 Per Share |
Total Net Assets: |
| $ | 351.5 Million |
30-day SEC Yield: |
| 5.05% | |
12-Month Distribution Rate: |
| 4.65% | |
Average Maturity: |
| 22.0 Years | |
Effective Duration: |
| 2.3 Years(1) | |
|
|
|
|
(1) See next page |
|
|
|
|
PORTFOLIO STRUCTURE |
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
|
| Sit |
| Lehman |
| Lipper | ||||
3 Month** |
| 0.99 | % |
| 1.79 | % |
| 0.30 | % | ||
6 Month** |
| 0.81 |
|
| -0.08 |
|
| n/a |
| ||
1 Year |
| 6.54 |
|
| 7.52 |
|
| 4.37 |
| ||
5 Years |
| 4.24 |
|
| 4.00 |
|
| 3.38 |
| ||
10 Years |
| 4.75 |
|
| 5.13 |
|
| 4.37 |
| ||
Inception |
| 6.58 |
|
| 6.80 |
|
| 6.21 |
| ||
| (6/2/87) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| Lehman |
| Lipper | ||||
1 Year |
| 6.54 | % |
| 7.52 | % |
| 4.37 | % | ||
5 Year |
| 23.07 |
|
| 21.68 |
|
| 18.11 |
| ||
10 Year |
| 59.07 |
|
| 64.97 |
|
| 53.31 |
| ||
Inception |
| 289.55 |
|
| 307.45 |
|
| 261.89 |
| ||
(6/2/87) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
*As of 9/30/08. |
| **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 9/30/08 would have grown to $38,955 in the Fund or $40,745 in the Lehman Intermediate Government Bond Index assuming reinvestment of all dividends and capital gains.
|
ESTIMATED AVERAGE LIFE PROFILE |
13
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Pass-Through Securities (60.2%) (2) |
Federal Home Loan Mortgage Corporation (16.8%): |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
36,267 |
| 5.50 | % |
| 8/1/17 |
| 36,813 | |||
130,685 |
| 5.98 | % |
| 2/1/34 |
| 132,500 | |||
205,306 |
| 6.38 | % |
| 12/1/26 |
| 210,582 | |||
73,738 |
| 6.38 | % |
| 8/1/27 |
| 76,116 | |||
96,393 |
| 6.38 | % |
| 12/1/27 |
| 99,501 | |||
530,355 |
| 6.50 | % |
| 8/1/29 |
| 544,412 | |||
275,906 |
| 7.00 | % |
| 1/1/33 |
| 289,999 | |||
249,003 |
| 7.38 | % |
| 12/17/24 |
| 266,707 | |||
978,333 |
| 7.50 | % |
| 9/1/26 |
| 1,039,581 | |||
181,872 |
| 7.50 | % |
| 7/1/27 |
| 197,681 | |||
1,353,426 |
| 7.50 | % |
| 7/1/27 |
| 1,452,217 | |||
420,869 |
| 7.50 | % |
| 1/1/31 |
| 445,238 | |||
799,162 |
| 7.50 | % |
| 7/1/31 |
| 847,278 | |||
6,086,597 |
| 7.50 | % |
| 10/1/31 |
| 6,637,367 | |||
4,348,320 |
| 7.50 | % |
| 10/1/31 |
| 4,610,124 | |||
4,784,590 |
| 7.50 | % |
| 4/1/32 |
| 5,072,661 | |||
3,981,950 |
| 7.50 | % |
| 7/1/32 |
| 4,313,842 | |||
1,615,448 |
| 7.50 | % |
| 12/1/32 |
| 1,712,711 | |||
10,028,302 |
| 7.50 | % |
| 7/1/34 |
| 10,881,858 | |||
1,999,472 |
| 7.50 | % |
| 12/1/34 |
| 2,131,937 | |||
424,477 |
| 7.50 | % |
| 6/1/35 |
| 460,974 | |||
63,230 |
| 7.95 | % |
| 10/1/25 |
| 68,108 | |||
70,269 |
| 7.95 | % |
| 10/1/25 |
| 76,207 | |||
48,676 |
| 7.95 | % |
| 11/1/25 |
| 52,789 | |||
19,192 |
| 8.00 | % |
| 5/1/17 |
| 20,504 | |||
57,914 |
| 8.00 | % |
| 1/1/21 |
| 62,238 | |||
332,989 |
| 8.00 | % |
| 12/1/23 |
| 357,154 | |||
198,028 |
| 8.00 | % |
| 9/15/24 |
| 215,605 | |||
20,511 |
| 8.00 | % |
| 12/1/26 |
| 22,416 | |||
138,799 |
| 8.00 | % |
| 6/1/30 |
| 151,851 | |||
43,428 |
| 8.25 | % |
| 12/1/17 |
| 47,196 | |||
3,715 |
| 8.50 | % |
| 1/1/17 |
| 4,061 | |||
24,819 |
| 8.50 | % |
| 3/1/17 |
| 27,137 | |||
67,845 |
| 8.50 | % |
| 4/1/17 |
| 73,507 | |||
69,837 |
| 8.50 | % |
| 5/1/17 |
| 76,359 | |||
22,056 |
| 8.50 | % |
| 5/1/17 |
| 24,116 | |||
54,041 |
| 8.50 | % |
| 10/1/19 |
| 59,558 | |||
36,859 |
| 8.50 | % |
| 7/1/21 |
| 40,623 | |||
1,143,309 |
| 8.50 | % |
| 6/20/27 |
| 1,251,614 | |||
299,938 |
| 8.50 | % |
| 12/1/29 |
| 325,683 | |||
247,323 |
| 8.50 | % |
| 2/1/31 |
| 268,552 | |||
3,548 |
| 8.75 | % |
| 1/1/17 |
| 3,741 | |||
236 |
| 9.00 | % |
| 5/1/09 |
| 237 | |||
145 |
| 9.00 | % |
| 6/1/09 |
| 146 | |||
323 |
| 9.00 | % |
| 7/1/09 |
| 325 | |||
701 |
| 9.00 | % |
| 12/1/09 |
| 706 | |||
76,536 |
| 9.00 | % |
| 11/1/15 |
| 87,401 | |||
59,312 |
| 9.00 | % |
| 5/1/16 |
| 67,732 | |||
32,567 |
| 9.00 | % |
| 10/1/16 |
| 35,160 | |||
12,758 |
| 9.00 | % |
| 1/1/17 |
| 13,896 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
8,656 |
| 9.00 | % |
| 2/1/17 |
| 8,855 | |||
17,966 |
| 9.00 | % |
| 6/1/17 |
| 19,626 | |||
12,904 |
| 9.00 | % |
| 7/1/21 |
| 14,358 | |||
14,749 |
| 9.00 | % |
| 10/1/21 |
| 15,635 | |||
173,857 |
| 9.00 | % |
| 11/1/25 |
| 193,425 | |||
1,197,720 |
| 9.00 | % |
| 3/20/27 |
| 1,303,703 | |||
1,691,354 |
| 9.00 | % |
| 4/1/31 |
| 1,878,511 | |||
2,157,086 |
| 9.00 | % |
| 5/1/31 |
| 2,400,214 | |||
1,160 |
| 9.25 | % |
| 7/1/10 |
| 1,167 | |||
20,716 |
| 9.25 | % |
| 6/1/16 |
| 22,952 | |||
6,480 |
| 9.25 | % |
| 3/1/17 |
| 7,179 | |||
99,528 |
| 9.25 | % |
| 2/1/18 |
| 105,600 | |||
725 |
| 9.25 | % |
| 1/1/19 |
| 744 | |||
51,292 |
| 9.25 | % |
| 3/1/19 |
| 55,089 | |||
45,222 |
| 9.25 | % |
| 3/1/19 |
| 46,506 | |||
9,216 |
| 9.50 | % |
| 2/1/10 |
| 9,288 | |||
5,040 |
| 9.50 | % |
| 5/1/10 |
| 5,235 | |||
1,320 |
| 9.50 | % |
| 6/1/10 |
| 1,331 | |||
606 |
| 9.50 | % |
| 1/1/11 |
| 645 | |||
10,031 |
| 9.50 | % |
| 6/1/16 |
| 11,176 | |||
4,231 |
| 9.50 | % |
| 7/1/16 |
| 4,714 | |||
24,158 |
| 9.50 | % |
| 10/1/16 |
| 26,917 | |||
1,759 |
| 9.50 | % |
| 6/1/17 |
| 1,964 | |||
41,881 |
| 9.50 | % |
| 4/1/18 |
| 46,875 | |||
196,973 |
| 9.50 | % |
| 6/17/19 |
| 216,393 | |||
819,473 |
| 9.50 | % |
| 12/17/21 |
| 904,410 | |||
164 |
| 9.75 | % |
| 12/1/08 |
| 165 | |||
68 |
| 9.75 | % |
| 12/1/08 |
| 69 | |||
44 |
| 9.75 | % |
| 11/1/09 |
| 44 | |||
1,156 |
| 9.75 | % |
| 6/1/11 |
| 1,167 | |||
72,097 |
| 9.75 | % |
| 12/1/16 |
| 77,607 | |||
126,435 |
| 9.75 | % |
| 12/1/17 |
| 141,267 | |||
7,415 |
| 10.00 | % |
| 11/1/10 |
| 7,489 | |||
8,212 |
| 10.00 | % |
| 11/1/11 |
| 8,405 | |||
155,025 |
| 10.00 | % |
| 9/1/20 |
| 178,662 | |||
1,497,449 |
| 10.00 | % |
| 3/1/21 |
| 1,739,842 | |||
782,462 |
| 10.00 | % |
| 3/15/25 |
| 877,468 | |||
1,259,625 |
| 10.00 | % |
| 7/1/30 |
| 1,485,817 | |||
2,693 |
| 10.25 | % |
| 6/1/10 |
| 2,774 | |||
27,448 |
| 10.25 | % |
| 2/1/17 |
| 28,275 | |||
21,729 |
| 10.29 | % |
| 9/1/16 |
| 23,043 | |||
43,574 |
| 10.50 | % |
| 10/1/13 |
| 48,020 | |||
17,151 |
| 10.50 | % |
| 5/1/14 |
| 17,687 | |||
8,833 |
| 10.50 | % |
| 1/1/19 |
| 10,365 | |||
221,295 |
| 10.50 | % |
| 6/1/19 |
| 252,549 | |||
3,003 |
| 11.00 | % |
| 12/1/11 |
| 3,274 | |||
15,294 |
| 11.00 | % |
| 6/1/15 |
| 17,076 | |||
4,362 |
| 11.00 | % |
| 2/1/16 |
| 4,769 | |||
1,116,149 |
| 11.00 | % |
| 9/17/16 |
| 1,262,071 | |||
2,867 |
| 11.00 | % |
| 5/1/19 |
| 3,068 | |||
3,018 |
| 11.00 | % |
| 7/1/19 |
| 3,360 |
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
474,443 |
| 11.00 | % |
| 8/15/20 |
| 536,475 | |||
1,400 |
| 11.25 | % |
| 10/1/09 |
| 1,448 | |||
7,998 |
| 11.25 | % |
| 8/1/11 |
| 9,269 | |||
14,934 |
| 13.00 | % |
| 5/1/17 |
| 17,937 | |||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| 58,956,695 | ||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| ||
Federal National Mortgage Association (27.3%): | ||||||||||
Par ($) |
| Coupon |
|
| Maturity |
| Mkt. Value ($)(1) | |||
|
|
|
|
|
|
| ||||
67,109 |
| 3.66 | % |
| 8/1/33 |
| 67,796 | |||
155,322 |
| 3.70 | % |
| 8/1/33 |
| 157,404 | |||
74,878 |
| 5.76 | % |
| 3/1/33 |
| 75,571 | |||
818,808 |
| 5.86 | % |
| 2/1/34 |
| 827,495 | |||
609,070 |
| 6.15 | % |
| 8/1/36 |
| 618,935 | |||
19,263 |
| 6.24 | % |
| 3/1/19 |
| 20,191 | |||
84,090 |
| 6.49 | % |
| 2/1/32 |
| 86,861 | |||
70,348 |
| 6.49 | % |
| 4/1/32 |
| 72,666 | |||
1,117,531 |
| 6.50 | % |
| 4/1/32 |
| 1,147,004 | |||
42,241 |
| 6.91 | % |
| 11/1/26 |
| 44,737 | |||
175,268 |
| 6.91 | % |
| 8/1/27 |
| 185,625 | |||
300,541 |
| 6.95 | % |
| 8/1/21 |
| 308,938 | |||
12,030 |
| 7.00 | % |
| 2/1/17 |
| 12,713 | |||
688,189 |
| 7.00 | % |
| 6/1/17 |
| 719,828 | |||
1,431,005 |
| 7.00 | % |
| 11/1/29 |
| 1,504,864 | |||
294,931 |
| 7.00 | % |
| 2/1/32 |
| 308,502 | |||
1,070,324 |
| 7.00 | % |
| 3/1/32 |
| 1,132,767 | |||
294,322 |
| 7.00 | % |
| 6/1/32 |
| 311,491 | |||
1,056,251 |
| 7.00 | % |
| 12/1/33 |
| 1,124,875 | |||
349,299 |
| 7.00 | % |
| 4/1/34 |
| 365,371 | |||
939,849 |
| 7.00 | % |
| 1/1/35 |
| 985,360 | |||
788,219 |
| 7.00 | % |
| 3/1/36 |
| 829,370 | |||
903,295 |
| 7.00 | % |
| 9/1/37 |
| 949,252 | |||
1,009,570 |
| 7.45 | % |
| 6/1/16 |
| 1,059,721 | |||
330,838 |
| 7.50 | % |
| 11/1/12 |
| 348,132 | |||
467,594 |
| 7.50 | % |
| 6/1/22 |
| 504,544 | |||
568,062 |
| 7.50 | % |
| 8/1/22 |
| 616,696 | |||
1,148,631 |
| 7.50 | % |
| 10/1/22 |
| 1,215,482 | |||
983,073 |
| 7.50 | % |
| 12/1/22 |
| 1,026,119 | |||
1,930,005 |
| 7.50 | % |
| 3/1/23 |
| 2,014,513 | |||
31,405 |
| 7.50 | % |
| 9/1/27 |
| 33,985 | |||
129,523 |
| 7.50 | % |
| 7/1/29 |
| 137,062 | |||
40,913 |
| 7.50 | % |
| 11/1/29 |
| 44,362 | |||
90,977 |
| 7.50 | % |
| 2/1/30 |
| 96,272 | |||
127,736 |
| 7.50 | % |
| 8/1/30 |
| 138,504 | |||
488,937 |
| 7.50 | % |
| 1/1/31 |
| 529,107 | |||
62,368 |
| 7.50 | % |
| 6/1/31 |
| 65,868 | |||
279,588 |
| 7.50 | % |
| 8/1/31 |
| 295,861 | |||
228,151 |
| 7.50 | % |
| 3/1/32 |
| 245,782 | |||
459,790 |
| 7.50 | % |
| 6/1/32 |
| 495,193 | |||
351,626 |
| 7.50 | % |
| 6/1/32 |
| 381,007 | |||
1,444,198 |
| 7.50 | % |
| 7/1/32 |
| 1,564,872 | |||
1,886,256 |
| 7.50 | % |
| 7/1/32 |
| 1,996,038 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
76,990 |
| 7.50 | % |
| 8/1/32 |
| 81,254 | |||
465,533 |
| 7.50 | % |
| 9/1/32 |
| 504,775 | |||
67,950 |
| 7.50 | % |
| 9/1/32 |
| 71,705 | |||
1,516,144 |
| 7.50 | % |
| 12/1/32 |
| 1,640,705 | |||
1,638,011 |
| 7.50 | % |
| 1/1/33 |
| 1,733,345 | |||
1,743,694 |
| 7.50 | % |
| 4/1/33 |
| 1,845,178 | |||
702,592 |
| 7.50 | % |
| 1/1/34 |
| 761,300 | |||
167,054 |
| 7.50 | % |
| 12/1/34 |
| 176,777 | |||
1,965,832 |
| 7.50 | % |
| 7/1/35 |
| 2,101,555 | |||
4,032,749 |
| 7.50 | % |
| 1/1/36 |
| 4,267,459 | |||
879,018 |
| 7.50 | % |
| 9/1/36 |
| 930,539 | |||
1,882,888 |
| 7.50 | % |
| 10/1/37 |
| 1,992,608 | |||
253,537 |
| 7.62 | % |
| 12/1/16 |
| 269,542 | |||
531,113 |
| 7.95 | % |
| 9/15/20 |
| 578,274 | |||
4,323 |
| 8.00 | % |
| 8/1/09 |
| 4,382 | |||
148,370 |
| 8.00 | % |
| 4/1/16 |
| 156,799 | |||
140,427 |
| 8.00 | % |
| 3/1/20 |
| 152,161 | |||
466,218 |
| 8.00 | % |
| 7/1/21 |
| 507,822 | |||
116,807 |
| 8.00 | % |
| 1/1/22 |
| 125,963 | |||
71,462 |
| 8.00 | % |
| 5/1/23 |
| 77,477 | |||
68,997 |
| 8.00 | % |
| 9/1/23 |
| 74,978 | |||
650,972 |
| 8.00 | % |
| 7/1/24 |
| 709,429 | |||
1,517,847 |
| 8.00 | % |
| 10/1/26 |
| 1,621,366 | |||
349,275 |
| 8.00 | % |
| 9/1/27 |
| 380,342 | |||
2,933,705 |
| 8.00 | % |
| 4/1/28 |
| 3,195,334 | |||
338,749 |
| 8.00 | % |
| 5/1/29 |
| 361,852 | |||
987,135 |
| 8.00 | % |
| 11/1/29 |
| 1,084,924 | |||
986,499 |
| 8.00 | % |
| 2/1/30 |
| 1,053,780 | |||
155,413 |
| 8.00 | % |
| 1/1/31 |
| 165,568 | |||
343,210 |
| 8.00 | % |
| 2/1/31 |
| 366,617 | |||
275,311 |
| 8.00 | % |
| 4/1/31 |
| 294,088 | |||
1,674,164 |
| 8.00 | % |
| 6/1/31 |
| 1,823,078 | |||
275,263 |
| 8.00 | % |
| 12/1/31 |
| 294,037 | |||
1,571,698 |
| 8.00 | % |
| 3/1/32 |
| 1,713,556 | |||
568,868 |
| 8.00 | % |
| 9/1/32 |
| 620,213 | |||
3,745,376 |
| 8.00 | % |
| 9/1/33 |
| 4,078,540 | |||
439,138 |
| 8.00 | % |
| 5/1/36 |
| 468,352 | |||
1,024,394 |
| 8.00 | % |
| 9/1/36 |
| 1,086,576 | |||
870,828 |
| 8.17 | % |
| 11/15/31 |
| 961,549 | |||
42,775 |
| 8.25 | % |
| 4/1/22 |
| 45,817 | |||
438,173 |
| 8.33 | % |
| 7/15/20 |
| 488,195 | |||
239,120 |
| 8.38 | % |
| 7/20/28 |
| 262,101 | |||
1,956,342 |
| 8.45 | % |
| 5/31/35 |
| 2,146,209 | |||
5,066 |
| 8.50 | % |
| 11/1/10 |
| 5,193 | |||
297,080 |
| 8.50 | % |
| 9/1/12 |
| 324,439 | |||
194,485 |
| 8.50 | % |
| 9/1/13 |
| 205,316 | |||
376,969 |
| 8.50 | % |
| 2/1/16 |
| 425,334 | |||
17,870 |
| 8.50 | % |
| 9/1/17 |
| 19,087 | |||
86,138 |
| 8.50 | % |
| 8/1/18 |
| 94,619 | |||
24,388 |
| 8.50 | % |
| 7/1/22 |
| 26,931 | |||
102,302 |
| 8.50 | % |
| 7/1/26 |
| 110,859 |
See accompanying notes to portfolios of investments on page 52. 15
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
758,762 |
| 8.50 | % |
| 11/1/26 |
| 834,374 | |||
486,737 |
| 8.50 | % |
| 10/1/28 |
| 533,163 | |||
321,819 |
| 8.50 | % |
| 11/1/28 |
| 353,943 | |||
545,537 |
| 8.50 | % |
| 12/1/28 |
| 599,900 | |||
653,895 |
| 8.50 | % |
| 4/1/29 |
| 719,141 | |||
142,722 |
| 8.50 | % |
| 6/1/30 |
| 156,250 | |||
606,043 |
| 8.50 | % |
| 7/1/30 |
| 666,514 | |||
62,799 |
| 8.50 | % |
| 11/1/30 |
| 68,393 | |||
10,688 |
| 8.50 | % |
| 1/1/31 |
| 11,640 | |||
132,753 |
| 8.50 | % |
| 5/1/32 |
| 146,188 | |||
208,259 |
| 8.52 | % |
| 9/15/30 |
| 230,723 | |||
417,812 |
| 8.71 | % |
| 7/20/30 |
| 458,235 | |||
87,051 |
| 8.87 | % |
| 12/15/25 |
| 98,625 | |||
2,418 |
| 9.00 | % |
| 1/1/09 |
| 2,451 | |||
1,078 |
| 9.00 | % |
| 5/1/09 |
| 1,088 | |||
4,186 |
| 9.00 | % |
| 5/1/09 |
| 4,268 | |||
4,334 |
| 9.00 | % |
| 5/1/09 |
| 4,373 | |||
18,708 |
| 9.00 | % |
| 3/1/11 |
| 19,267 | |||
14,515 |
| 9.00 | % |
| 9/1/17 |
| 15,910 | |||
35,155 |
| 9.00 | % |
| 2/1/18 |
| 38,534 | |||
14,822 |
| 9.00 | % |
| 10/1/19 |
| 16,116 | |||
32,969 |
| 9.00 | % |
| 12/15/19 |
| 35,816 | |||
121,664 |
| 9.00 | % |
| 6/15/25 |
| 132,918 | |||
660,198 |
| 9.00 | % |
| 6/1/30 |
| 730,290 | |||
607,578 |
| 9.00 | % |
| 7/1/30 |
| 671,045 | |||
535,066 |
| 9.00 | % |
| 2/1/31 |
| 592,027 | |||
28,864 |
| 9.00 | % |
| 7/1/31 |
| 32,119 | |||
4,976,276 |
| 9.00 | % |
| 3/1/32 |
| 5,499,497 | |||
1,536,846 |
| 9.00 | % |
| 1/1/38 |
| 1,670,094 | |||
1,117,737 |
| 9.00 | % |
| 2/1/38 |
| 1,214,639 | |||
2,723 |
| 9.25 | % |
| 10/1/09 |
| 2,752 | |||
3,520 |
| 9.25 | % |
| 7/1/10 |
| 3,586 | |||
46,562 |
| 9.25 | % |
| 10/1/16 |
| 51,454 | |||
100,098 |
| 9.25 | % |
| 2/1/17 |
| 110,245 | |||
174,159 |
| 9.34 | % |
| 8/20/27 |
| 198,241 | |||
10,374 |
| 9.50 | % |
| 12/1/09 |
| 10,653 | |||
20,378 |
| 9.50 | % |
| 11/1/18 |
| 22,732 | |||
43,584 |
| 9.50 | % |
| 5/1/19 |
| 48,758 | |||
46,037 |
| 9.50 | % |
| 10/1/19 |
| 50,668 | |||
559,574 |
| 9.50 | % |
| 3/1/20 |
| 613,783 | |||
653,418 |
| 9.50 | % |
| 7/1/20 |
| 730,100 | |||
76,478 |
| 9.50 | % |
| 9/1/20 |
| 85,156 | |||
95,019 |
| 9.50 | % |
| 10/15/20 |
| 104,791 | |||
21,403 |
| 9.50 | % |
| 12/15/20 |
| 23,534 | |||
79,072 |
| 9.50 | % |
| 12/15/20 |
| 87,356 | |||
19,696 |
| 9.50 | % |
| 3/1/21 |
| 21,892 | |||
26,410 |
| 9.50 | % |
| 4/15/21 |
| 29,303 | |||
192,459 |
| 9.50 | % |
| 8/1/24 |
| 214,752 | |||
103,051 |
| 9.50 | % |
| 12/1/24 |
| 115,145 | |||
182,303 |
| 9.50 | % |
| 5/1/27 |
| 204,418 | |||
614,178 |
| 9.50 | % |
| 4/1/30 |
| 685,319 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
3,022,859 |
| 9.50 | % |
| 8/1/31 |
| 3,381,341 | |||
818,092 |
| 9.55 | % |
| 8/20/25 |
| 922,034 | |||
75,928 |
| 9.75 | % |
| 1/15/13 |
| 82,778 | |||
141,828 |
| 9.75 | % |
| 10/1/21 |
| 160,229 | |||
169,318 |
| 9.75 | % |
| 4/1/25 |
| 191,286 | |||
15,414 |
| 10.00 | % |
| 5/1/11 |
| 15,869 | |||
69,492 |
| 10.00 | % |
| 7/1/13 |
| 77,719 | |||
326,193 |
| 10.00 | % |
| 2/1/15 |
| 362,075 | |||
452,589 |
| 10.00 | % |
| 3/1/15 |
| 507,377 | |||
54,667 |
| 10.00 | % |
| 11/1/16 |
| 61,166 | |||
38,415 |
| 10.00 | % |
| 9/1/19 |
| 44,000 | |||
15,056 |
| 10.00 | % |
| 11/1/20 |
| 17,474 | |||
11,740 |
| 10.00 | % |
| 1/1/21 |
| 13,835 | |||
79,160 |
| 10.00 | % |
| 1/1/24 |
| 91,111 | |||
321,934 |
| 10.00 | % |
| 2/1/28 |
| 375,333 | |||
903,469 |
| 10.00 | % |
| 6/1/30 |
| 1,034,832 | |||
253,308 |
| 10.18 | % |
| 7/1/20 |
| 285,024 | |||
1,438,807 |
| 10.25 | % |
| 12/1/09 |
| 1,507,917 | |||
123,586 |
| 10.25 | % |
| 8/15/13 |
| 135,470 | |||
22,943 |
| 10.50 | % |
| 5/1/15 |
| 26,258 | |||
143,129 |
| 10.50 | % |
| 1/1/16 |
| 161,359 | |||
35,108 |
| 10.50 | % |
| 12/1/17 |
| 40,531 | |||
47,972 |
| 10.50 | % |
| 4/1/22 |
| 53,936 | |||
1,692 |
| 11.00 | % |
| 4/1/14 |
| 1,882 | |||
6,441 |
| 11.00 | % |
| 8/1/15 |
| 6,756 | |||
16,881 |
| 11.00 | % |
| 4/1/17 |
| 18,884 | |||
209,381 |
| 11.27 | % |
| 8/15/20 |
| 240,196 | |||
112,114 |
| 11.75 | % |
| 12/15/26 |
|
| 128,681 | ||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| 96,072,167 | ||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Government National Mortgage Association (16.1%) (3): | ||||||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
358,068 |
| 5.50 | % |
| 9/15/25 |
| 365,555 | |||
130,668 |
| 5.76 | % |
| 3/20/33 |
| 131,786 | |||
80,250 |
| 5.76 | % |
| 3/20/33 |
| 80,937 | |||
106,865 |
| 5.76 | % |
| 3/20/33 |
| 107,779 | |||
342,675 |
| 5.76 | % |
| 5/20/33 |
| 345,606 | |||
112,437 |
| 5.76 | % |
| 5/20/33 |
| 113,398 | |||
90,762 |
| 5.76 | % |
| 6/20/33 |
| 91,538 | |||
104,918 |
| 5.76 | % |
| 6/20/33 |
| 105,815 | |||
62,674 |
| 6.00 | % |
| 9/15/18 |
| 64,554 | |||
80,471 |
| 6.05 | % |
| 3/20/33 |
| 81,693 | |||
134,837 |
| 6.25 | % |
| 5/15/13 |
| 138,536 | |||
327,986 |
| 6.25 | % |
| 12/15/23 |
| 337,134 | |||
190,697 |
| 6.25 | % |
| 1/15/24 |
| 196,428 | |||
130,247 |
| 6.38 | % |
| 12/15/27 |
| 133,901 | |||
286,292 |
| 6.38 | % |
| 4/15/28 |
| 294,323 | |||
143,485 |
| 6.49 | % |
| 11/20/31 |
| 147,421 | |||
46,691 |
| 6.49 | % |
| 12/20/31 |
| 47,972 | |||
168,709 |
| 6.49 | % |
| 4/20/32 |
| 173,277 | |||
72,701 |
| 6.49 | % |
| 6/20/32 |
| 74,670 |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
86,100 |
| 6.49 | % |
| 12/20/32 |
| 88,431 | |||
1,602,220 |
| 6.50 | % |
| 4/20/38 |
| 1,625,252 | |||
1,038,221 |
| 6.50 | % |
| 7/20/38 |
| 1,075,532 | |||
37,455 |
| 6.57 | % |
| 9/20/32 |
| 38,640 | |||
82,017 |
| 6.57 | % |
| 3/20/33 |
| 84,574 | |||
67,404 |
| 6.75 | % |
| 9/15/15 |
| 71,157 | |||
289,990 |
| 6.75 | % |
| 8/15/28 |
| 303,619 | |||
88,682 |
| 6.75 | % |
| 6/15/29 |
| 92,774 | |||
399,268 |
| 6.91 | % |
| 7/20/26 |
| 418,062 | |||
872,263 |
| 6.91 | % |
| 2/20/27 |
| 912,634 | |||
26,417 |
| 7.00 | % |
| 9/20/16 |
| 27,727 | |||
634,711 |
| 7.00 | % |
| 7/15/29 |
| 668,752 | |||
5,049,272 |
| 7.00 | % |
| 9/15/31 |
| 5,289,638 | |||
611,261 |
| 7.00 | % |
| 8/20/36 |
| 636,350 | |||
1,044,684 |
| 7.00 | % |
| 9/20/36 |
| 1,087,562 | |||
1,359,883 |
| 7.00 | % |
| 6/20/38 |
| 1,379,431 | |||
15,963 |
| 7.05 | % |
| 2/15/23 |
| 17,027 | |||
91,257 |
| 7.05 | % |
| 9/20/26 |
| 96,981 | |||
76,602 |
| 7.05 | % |
| 11/20/26 |
| 81,407 | |||
61,171 |
| 7.05 | % |
| 1/20/27 |
| 64,978 | |||
96,492 |
| 7.05 | % |
| 4/20/27 |
| 102,497 | |||
1,053,991 |
| 7.10 | % |
| 5/20/25 |
| 1,121,913 | |||
41,011 |
| 7.15 | % |
| 12/20/26 |
| 43,703 | |||
73,148 |
| 7.15 | % |
| 3/20/27 |
| 77,915 | |||
237,139 |
| 7.15 | % |
| 4/20/27 |
| 252,597 | |||
4,529 |
| 7.25 | % |
| 8/15/10 |
| 4,685 | |||
126,624 |
| 7.25 | % |
| 5/15/29 |
| 135,598 | |||
226,478 |
| 7.25 | % |
| 6/15/29 |
| 242,242 | |||
60,094 |
| 7.27 | % |
| 7/20/22 |
| 64,207 | |||
59,406 |
| 7.38 | % |
| 1/15/29 |
| 63,830 | |||
51,893 |
| 7.50 | % |
| 5/15/16 |
| 56,216 | |||
802,632 |
| 7.50 | % |
| 8/15/23 |
| 866,412 | |||
526,651 |
| 7.50 | % |
| 11/15/23 |
| 568,501 | |||
1,438,900 |
| 7.50 | % |
| 12/15/23 |
| 1,552,898 | |||
2,081,518 |
| 7.50 | % |
| 12/15/23 |
| 2,246,299 | |||
221,191 |
| 7.50 | % |
| 5/15/27 |
| 234,854 | |||
303,684 |
| 7.50 | % |
| 8/15/27 |
| 322,443 | |||
588,509 |
| 7.50 | % |
| 8/15/27 |
| 635,324 | |||
416,204 |
| 7.50 | % |
| 11/15/27 |
| 449,313 | |||
5,218,496 |
| 7.50 | % |
| 12/15/29 |
| 5,627,478 | |||
274,872 |
| 7.50 | % |
| 2/20/31 |
| 290,752 | |||
149,948 |
| 7.50 | % |
| 3/20/31 |
| 158,611 | |||
224,642 |
| 7.50 | % |
| 5/20/31 |
| 237,620 | |||
143,815 |
| 7.50 | % |
| 6/15/36 |
| 152,684 | |||
1,369,291 |
| 7.50 | % |
| 1/20/38 |
| 1,448,396 | |||
65,328 |
| 7.55 | % |
| 7/20/22 |
| 70,499 | |||
69,365 |
| 7.55 | % |
| 10/20/22 |
| 74,856 | |||
92,339 |
| 7.63 | % |
| 10/15/29 |
| 100,261 | |||
159,190 |
| 7.63 | % |
| 12/15/29 |
| 172,849 | |||
57,831 |
| 7.65 | % |
| 10/20/21 |
| 62,538 | |||
79,847 |
| 7.65 | % |
| 7/20/22 |
| 86,391 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
166,642 |
| 7.75 | % |
| 6/15/20 |
| 181,284 | |||
175,038 |
| 7.75 | % |
| 7/15/20 |
| 190,417 | |||
79,197 |
| 7.75 | % |
| 8/15/20 |
| 86,156 | |||
116,735 |
| 7.75 | % |
| 8/15/20 |
| 126,991 | |||
64,029 |
| 7.75 | % |
| 11/15/20 |
| 69,654 | |||
41,401 |
| 7.90 | % |
| 1/20/21 |
| 45,055 | |||
25,189 |
| 7.90 | % |
| 1/20/21 |
| 27,412 | |||
86,953 |
| 7.95 | % |
| 2/15/20 |
| 95,061 | |||
40,875 |
| 7.95 | % |
| 5/20/25 |
| 44,634 | |||
115,180 |
| 7.95 | % |
| 7/20/25 |
| 125,771 | |||
46,797 |
| 7.95 | % |
| 8/20/25 |
| 51,100 | |||
157,893 |
| 7.95 | % |
| 9/20/25 |
| 172,411 | |||
24,946 |
| 7.95 | % |
| 10/20/25 |
| 27,240 | |||
36,287 |
| 7.95 | % |
| 10/20/25 |
| 39,624 | |||
30,754 |
| 7.95 | % |
| 10/20/25 |
| 33,582 | |||
69,087 |
| 7.95 | % |
| 1/20/26 |
| 75,455 | |||
71,869 |
| 7.95 | % |
| 1/20/26 |
| 78,494 | |||
85,595 |
| 7.95 | % |
| 4/20/26 |
| 93,485 | |||
20,673 |
| 7.95 | % |
| 6/20/26 |
| 22,579 | |||
23,299 |
| 7.95 | % |
| 9/20/26 |
| 25,447 | |||
35,360 |
| 7.95 | % |
| 9/20/26 |
| 38,620 | |||
25,782 |
| 7.95 | % |
| 11/20/26 |
| 28,158 | |||
34,329 |
| 7.95 | % |
| 12/20/26 |
| 37,494 | |||
44,831 |
| 7.95 | % |
| 3/20/27 |
| 48,947 | |||
34,137 |
| 7.99 | % |
| 2/20/21 |
| 37,234 | |||
56,132 |
| 7.99 | % |
| 4/20/21 |
| 61,225 | |||
110,398 |
| 7.99 | % |
| 7/20/21 |
| 120,414 | |||
71,434 |
| 7.99 | % |
| 9/20/21 |
| 77,915 | |||
94,245 |
| 7.99 | % |
| 10/20/21 |
| 102,796 | |||
180,573 |
| 7.99 | % |
| 1/20/22 |
| 197,106 | |||
233,323 |
| 7.99 | % |
| 6/20/22 |
| 254,686 | |||
14,880 |
| 8.00 | % |
| 10/15/12 |
| 16,082 | |||
326,671 |
| 8.00 | % |
| 10/15/14 |
| 349,224 | |||
49,994 |
| 8.00 | % |
| 5/15/16 |
| 54,899 | |||
149,816 |
| 8.00 | % |
| 6/15/16 |
| 164,515 | |||
52,660 |
| 8.00 | % |
| 9/15/16 |
| 57,827 | |||
63,297 |
| 8.00 | % |
| 7/15/27 |
| 69,457 | |||
1,961,154 |
| 8.00 | % |
| 7/15/29 |
| 2,152,661 | |||
507,135 |
| 8.00 | % |
| 5/15/30 |
| 556,701 | |||
327,125 |
| 8.00 | % |
| 5/15/30 |
| 359,097 | |||
669,284 |
| 8.00 | % |
| 12/15/30 |
| 719,828 | |||
3,302,006 |
| 8.00 | % |
| 4/15/31 |
| 3,551,376 | |||
1,735,333 |
| 8.00 | % |
| 6/20/31 |
| 1,859,466 | |||
238,343 |
| 8.10 | % |
| 5/20/19 |
| 259,100 | |||
25,863 |
| 8.10 | % |
| 6/20/19 |
| 28,115 | |||
63,554 |
| 8.10 | % |
| 7/20/19 |
| 69,089 | |||
125,210 |
| 8.10 | % |
| 9/20/19 |
| 136,114 | |||
23,849 |
| 8.10 | % |
| 9/20/19 |
| 25,926 | |||
22,692 |
| 8.10 | % |
| 10/20/19 |
| 24,668 | |||
26,294 |
| 8.10 | % |
| 1/20/20 |
| 28,606 | |||
41,188 |
| 8.10 | % |
| 7/20/20 |
| 44,811 |
See accompanying notes to portfolios of investments on page 52. 17
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
| 60,287 |
| 8.25 | % |
| 12/15/11 |
|
|
| 64,632 |
| 9,331 |
| 8.25 | % |
| 1/15/12 |
|
|
| 10,108 |
| 32,514 |
| 8.25 | % |
| 8/15/15 |
|
|
| 35,646 |
| 330,599 |
| 8.25 | % |
| 4/15/19 |
|
|
| 361,986 |
| 112,751 |
| 8.25 | % |
| 2/15/20 |
|
|
| 123,571 |
| 11,012 |
| 8.25 | % |
| 4/15/27 |
|
|
| 12,051 |
| 38,233 |
| 8.25 | % |
| 6/15/27 |
|
|
| 41,839 |
| 39,219 |
| 8.38 | % |
| 10/15/19 |
|
|
| 43,063 |
| 94,591 |
| 8.40 | % |
| 2/15/19 |
|
|
| 103,937 |
| 106,064 |
| 8.40 | % |
| 6/15/19 |
|
|
| 116,544 |
| 31,705 |
| 8.40 | % |
| 9/15/19 |
|
|
| 34,838 |
| 51,451 |
| 8.40 | % |
| 2/15/20 |
|
|
| 56,597 |
| 15,277 |
| 8.50 | % |
| 12/15/11 |
|
|
| 16,424 |
| 52,750 |
| 8.50 | % |
| 1/15/12 |
|
|
| 57,342 |
| 8,032 |
| 8.50 | % |
| 4/15/15 |
|
|
| 8,848 |
| 49,707 |
| 8.50 | % |
| 4/15/15 |
|
|
| 54,759 |
| 139,684 |
| 8.50 | % |
| 9/15/16 |
|
|
| 154,413 |
| 59,929 |
| 8.50 | % |
| 1/15/17 |
|
|
| 66,514 |
| 84,356 |
| 8.50 | % |
| 12/15/21 |
|
|
| 93,115 |
| 61,288 |
| 8.50 | % |
| 12/15/21 |
|
|
| 67,596 |
| 9,039 |
| 8.50 | % |
| 7/20/22 |
|
|
| 9,950 |
| 68,250 |
| 8.50 | % |
| 10/20/22 |
|
|
| 75,128 |
| 36,180 |
| 8.50 | % |
| 9/20/24 |
|
|
| 39,877 |
| 66,407 |
| 8.50 | % |
| 3/20/25 |
|
|
| 73,198 |
| 182,224 |
| 8.50 | % |
| 12/20/26 |
|
|
| 200,121 |
| 25,849 |
| 8.50 | % |
| 8/15/30 |
|
|
| 28,432 |
| 2,426,720 |
| 8.50 | % |
| 7/15/32 |
|
|
| 2,636,626 |
| 45,141 |
| 8.60 | % |
| 6/15/18 |
|
|
| 49,082 |
| 41,969 |
| 8.63 | % |
| 10/15/18 |
|
|
| 45,642 |
| 8,322 |
| 8.75 | % |
| 11/15/09 |
|
|
| 8,695 |
| 15,644 |
| 8.75 | % |
| 6/15/11 |
|
|
| 16,782 |
| 96,428 |
| 8.75 | % |
| 11/15/11 |
|
|
| 103,442 |
| 17,684 |
| 8.75 | % |
| 12/15/11 |
|
|
| 18,970 |
| 70 |
| 9.00 | % |
| 11/15/08 |
|
|
| 71 |
| 212 |
| 9.00 | % |
| 12/15/08 |
|
|
| 214 |
| 233 |
| 9.00 | % |
| 2/15/09 |
|
|
| 239 |
| 749 |
| 9.00 | % |
| 4/15/09 |
|
|
| 773 |
| 131 |
| 9.00 | % |
| 5/15/09 |
|
|
| 134 |
| 729 |
| 9.00 | % |
| 9/15/09 |
|
|
| 752 |
| 287 |
| 9.00 | % |
| 10/15/09 |
|
|
| 295 |
| 6,799 |
| 9.00 | % |
| 11/15/09 |
|
|
| 7,111 |
| 704 |
| 9.00 | % |
| 12/15/09 |
|
|
| 727 |
| 4,115 |
| 9.00 | % |
| 7/15/10 |
|
|
| 4,295 |
| 39,041 |
| 9.00 | % |
| 5/15/11 |
|
|
| 41,996 |
| 23,664 |
| 9.00 | % |
| 5/15/11 |
|
|
| 25,456 |
| 32,943 |
| 9.00 | % |
| 6/15/11 |
|
|
| 35,437 |
| 31,693 |
| 9.00 | % |
| 7/15/11 |
|
|
| 34,092 |
| 41,993 |
| 9.00 | % |
| 8/15/11 |
|
|
| 45,172 |
| 13,808 |
| 9.00 | % |
| 8/15/11 |
|
|
| 14,954 |
| 50,144 |
| 9.00 | % |
| 9/15/11 |
|
|
| 53,940 |
| 49,986 |
| 9.00 | % |
| 9/15/11 |
|
|
| 53,770 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
| 26,256 |
| 9.00 | % |
| 9/15/11 |
|
|
| 28,244 |
| 30,444 |
| 9.00 | % |
| 10/15/11 |
|
|
| 32,749 |
| 9,436 |
| 9.00 | % |
| 1/15/12 |
|
|
| 10,254 |
| 82,973 |
| 9.00 | % |
| 7/15/15 |
|
|
| 90,344 |
| 28,919 |
| 9.00 | % |
| 8/15/15 |
|
|
| 31,488 |
| 310,163 |
| 9.00 | % |
| 12/15/16 |
|
|
| 339,041 |
| 39,376 |
| 9.00 | % |
| 1/15/17 |
|
|
| 43,916 |
| 218,181 |
| 9.00 | % |
| 7/15/17 |
|
|
| 243,337 |
| 201,674 |
| 9.00 | % |
| 11/15/24 |
|
|
| 221,607 |
| 97,173 |
| 9.00 | % |
| 4/15/26 |
|
|
| 107,069 |
| 20,994 |
| 9.10 | % |
| 5/15/18 |
|
|
| 23,117 |
| 14,477 |
| 9.25 | % |
| 11/15/09 |
|
|
| 15,237 |
| 10,703 |
| 9.25 | % |
| 1/15/10 |
|
|
| 11,461 |
| 15,538 |
| 9.25 | % |
| 4/15/10 |
|
|
| 16,637 |
| 14,172 |
| 9.25 | % |
| 11/15/10 |
|
|
| 15,175 |
| 31,681 |
| 9.25 | % |
| 11/15/11 |
|
|
| 34,361 |
| 20,523 |
| 9.50 | % |
| 10/15/09 |
|
|
| 21,056 |
| 6,939 |
| 9.50 | % |
| 10/15/09 |
|
|
| 7,120 |
| 805 |
| 9.50 | % |
| 10/15/09 |
|
|
| 826 |
| 6,900 |
| 9.50 | % |
| 11/15/09 |
|
|
| 7,270 |
| 18,967 |
| 9.50 | % |
| 1/15/10 |
|
|
| 20,350 |
| 5,621 |
| 9.50 | % |
| 2/15/10 |
|
|
| 5,875 |
| 10,829 |
| 9.50 | % |
| 4/15/10 |
|
|
| 11,542 |
| 7,983 |
| 9.50 | % |
| 8/15/10 |
|
|
| 8,565 |
| 11,478 |
| 9.50 | % |
| 11/15/10 |
|
|
| 12,314 |
| 6,607 |
| 9.50 | % |
| 1/15/11 |
|
|
| 7,186 |
| 40,656 |
| 9.50 | % |
| 3/15/11 |
|
|
| 44,216 |
| 12,936 |
| 9.50 | % |
| 3/20/16 |
|
|
| 14,230 |
| 38,040 |
| 9.50 | % |
| 11/20/16 |
|
|
| 41,844 |
| 1,876 |
| 9.50 | % |
| 12/20/17 |
|
|
| 2,071 |
| 3,810 |
| 9.50 | % |
| 4/20/18 |
|
|
| 4,219 |
| 1,445 |
| 9.50 | % |
| 5/20/18 |
|
|
| 1,600 |
| 29,761 |
| 9.50 | % |
| 6/20/18 |
|
|
| 32,952 |
| 28,272 |
| 9.50 | % |
| 7/20/18 |
|
|
| 31,303 |
| 18,086 |
| 9.50 | % |
| 8/20/18 |
|
|
| 20,025 |
| 33,972 |
| 9.50 | % |
| 9/20/18 |
|
|
| 37,615 |
| 39,731 |
| 9.50 | % |
| 9/20/18 |
|
|
| 43,991 |
| 11,395 |
| 9.50 | % |
| 9/20/18 |
|
|
| 12,617 |
| 17,683 |
| 9.50 | % |
| 8/20/19 |
|
|
| 19,626 |
| 2,375 |
| 9.50 | % |
| 10/20/19 |
|
|
| 2,636 |
| 14,684 |
| 9.75 | % |
| 8/15/09 |
|
|
| 15,487 |
| 15,767 |
| 9.75 | % |
| 9/15/09 |
|
|
| 16,629 |
| 58,724 |
| 9.75 | % |
| 8/15/10 |
|
|
| 63,422 |
| 16,911 |
| 9.75 | % |
| 11/15/10 |
|
|
| 18,264 |
| 57,897 |
| 9.75 | % |
| 12/15/10 |
|
|
| 62,529 |
| 46,556 |
| 9.75 | % |
| 1/15/11 |
|
|
| 51,079 |
| 38,662 |
| 9.75 | % |
| 1/15/11 |
|
|
| 42,418 |
| 13,710 |
| 9.75 | % |
| 10/15/12 |
|
|
| 15,239 |
| 6,463 |
| 9.75 | % |
| 10/15/12 |
|
|
| 7,184 |
| 6,318 |
| 9.75 | % |
| 11/15/12 |
|
|
| 7,023 |
| 19,065 |
| 9.75 | % |
| 11/15/12 |
|
|
| 21,191 |
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
| 18,722 |
| 9.75 | % |
| 11/15/12 |
|
|
| 20,810 |
| 12,254 |
| 9.75 | % |
| 11/15/12 |
|
|
| 13,620 |
| 584 |
| 10.00 | % |
| 11/15/09 |
|
|
| 603 |
| 2,222 |
| 10.00 | % |
| 6/15/10 |
|
|
| 2,404 |
| 34,531 |
| 10.00 | % |
| 6/15/10 |
|
|
| 37,367 |
| 11,298 |
| 10.00 | % |
| 7/15/10 |
|
|
| 12,226 |
| 4,979 |
| 10.00 | % |
| 7/15/10 |
|
|
| 5,388 |
| 11,174 |
| 10.00 | % |
| 11/15/10 |
|
|
| 12,092 |
| 27,754 |
| 10.00 | % |
| 3/20/16 |
|
|
| 31,201 |
| 15,077 |
| 10.00 | % |
| 11/15/17 |
|
|
| 17,093 |
| 29,291 |
| 10.00 | % |
| 2/15/19 |
|
|
| 33,451 |
| 15,429 |
| 10.00 | % |
| 2/20/19 |
|
|
| 17,559 |
| 14,952 |
| 10.00 | % |
| 3/20/19 |
|
|
| 17,016 |
| 14,771 |
| 10.00 | % |
| 5/20/19 |
|
|
| 16,810 |
| 131,495 |
| 10.00 | % |
| 10/15/19 |
|
|
| 153,332 |
| 35,247 |
| 10.00 | % |
| 11/15/19 |
|
|
| 40,252 |
| 29,855 |
| 10.00 | % |
| 12/15/20 |
|
|
| 34,190 |
| 66,203 |
| 10.00 | % |
| 6/15/21 |
|
|
| 75,999 |
| 3,819 |
| 10.25 | % |
| 5/15/09 |
|
|
| 3,990 |
| 4,110 |
| 10.25 | % |
| 11/15/11 |
|
|
| 4,486 |
| 14,181 |
| 10.25 | % |
| 1/15/12 |
|
|
| 15,703 |
| 5,655 |
| 10.25 | % |
| 7/15/12 |
|
|
| 6,261 |
| 8,825 |
| 10.50 | % |
| 6/15/09 |
|
|
| 9,231 |
| 1,009 |
| 10.50 | % |
| 7/15/10 |
|
|
| 1,085 |
| 8,190 |
| 10.50 | % |
| 9/15/15 |
|
|
| 9,272 |
| 10,757 |
| 10.50 | % |
| 11/15/15 |
|
|
| 12,178 |
| 1,323 |
| 10.50 | % |
| 8/20/17 |
|
|
| 1,510 |
| 14,189 |
| 10.50 | % |
| 11/15/18 |
|
|
| 16,322 |
| 29,333 |
| 10.50 | % |
| 6/15/19 |
|
|
| 33,866 |
| 175,203 |
| 10.50 | % |
| 2/15/20 |
|
|
| 201,051 |
| 385,974 |
| 10.50 | % |
| 12/15/20 |
|
|
| 435,079 |
| 154,995 |
| 10.50 | % |
| 8/15/21 |
|
|
| 181,841 |
| 1,306 |
| 10.75 | % |
| 1/15/10 |
|
|
| 1,408 |
| 723 |
| 10.75 | % |
| 7/15/11 |
|
|
| 794 |
| 7,425 |
| 11.25 | % |
| 6/15/10 |
|
|
| 8,039 |
| 15,344 |
| 11.25 | % |
| 9/15/10 |
|
|
| 16,612 |
| 1,425 |
| 11.25 | % |
| 9/15/10 |
|
|
| 1,542 |
| 11,349 |
| 11.25 | % |
| 3/15/11 |
|
|
| 12,535 |
| 2,421 |
| 11.25 | % |
| 3/15/11 |
|
|
| 2,674 |
| 24,553 |
| 11.25 | % |
| 4/15/11 |
|
|
| 27,119 |
| 5,240 |
| 11.25 | % |
| 5/15/11 |
|
|
| 5,787 |
| 19,403 |
| 11.25 | % |
| 7/15/11 |
|
|
| 21,430 |
| 4,000 |
| 11.25 | % |
| 7/15/11 |
|
|
| 4,418 |
| 4,756 |
| 11.25 | % |
| 10/15/11 |
|
|
| 5,253 |
| 55,212 |
| 11.50 | % |
| 8/15/18 |
|
|
| 61,365 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 56,548,253 |
|
|
|
|
|
|
|
|
|
| |
| ||||||||||
Total mortgage pass-through securities |
|
| 211,577,115 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
Taxable Municipal Securities (0.1 %) (2) |
|
| ||||||||
| 392,000 |
| Bernalillo Multifamily Rev. Series | 413,086 | ||||||
|
|
|
|
|
|
|
|
|
| |
| (cost: $403,287) |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury / Federal Agency Securities (3.5%) (2) |
| |||||||||
|
|
| U.S. Treasury inflation-protected security: | |||||||
| 6,638,720 |
| 1.625%, 1/15/18 (*) |
| 6,288,116 | |||||
| 3,925,296 |
| 2.375%, 1/15/27 (*) |
| 3,796,189 | |||||
| 5,850,000 |
| U.S. Treasury Strips, Zero Coupon, |
| ||||||
|
|
| 5.45% effective yield, 5/15/30 | 2,207,726 | ||||||
|
|
|
|
|
|
|
|
|
| |
| ||||||||||
Total U.S. Treasury / Federal Agency securities | 12,292,031 | |||||||||
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (28.1 %) (2) |
| |||||||||
| Federal Home Loan Mortgage Corp.: |
|
| |||||||
| ||||||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
| 474,027 |
| 3.00 | % |
| 2/15/23 |
|
|
| 442,260 |
| 2,384,034 |
| 3.25 | % |
| 4/15/32 |
|
|
| 2,193,475 |
| 467,381 |
| 3.50 | % |
| 5/15/29 |
|
|
| 440,701 |
| 462,583 |
| 3.50 | % |
| 12/1/32 |
|
|
| 445,365 |
| 531,877 |
| 4.00 | % |
| 11/15/14 |
|
|
| 529,195 |
| 2,524,879 |
| 4.00 | % |
| 5/31/25 |
|
|
| 2,114,935 |
| 231,291 |
| 4.00 | % |
| 12/15/32 |
|
|
| 220,773 |
| 467,600 |
| 4.00 | % |
| 3/15/34 |
|
|
| 445,008 |
| 748,918 |
| 4.50 | % |
| 5/15/32 |
|
|
| 747,120 |
| 500,000 |
| 5.50 | % |
| 7/15/31 |
|
|
| 505,717 |
| 1,000,000 |
| 5.50 | % |
| 9/15/32 |
|
|
| 993,495 |
| 120,454 |
| 6.50 | % |
| 2/15/30 |
|
|
| 124,599 |
| 241,313 |
| 6.70 | % |
| 9/15/23 |
|
|
| 248,424 |
| 589,843 |
| 6.95 | % |
| 3/15/28 |
|
|
| 615,061 |
| 1,811,546 |
| 7.00 | % |
| 8/15/29 |
|
|
| 1,881,331 |
| 460,182 |
| 7.00 | % |
| 7/15/31 |
|
|
| 479,952 |
| 360,129 |
| 7.50 | % |
| 6/15/17 |
|
|
| 381,335 |
| 1,509,912 |
| 7.50 | % |
| 7/15/22 |
|
|
| 1,615,819 |
| 114,306 |
| 7.50 | % |
| 3/15/23 |
|
|
| 122,366 |
| 1,523,582 |
| 7.50 | % |
| 6/15/30 |
|
|
| 1,613,569 |
| 746,475 |
| 7.50 | % |
| 9/15/30 |
|
|
| 790,179 |
| 199,107 |
| 7.50 | % |
| 9/15/30 |
|
|
| 212,178 |
| 176,289 |
| 8.00 | % |
| 11/25/22 |
|
|
| 191,659 |
| 67,217 |
| 8.00 | % |
| 3/15/23 |
|
|
| 72,847 |
| 106,583 |
| 8.00 | % |
| 4/25/24 |
|
|
| 112,155 |
| 870,353 |
| 8.00 | % |
| 1/15/30 |
|
|
| 905,021 |
| 130,140 |
| 8.50 | % |
| 6/15/25 |
|
|
| 136,673 |
| 20,955 |
| 9.15 | % |
| 10/15/20 |
|
|
| 22,212 |
| 1,039,984 |
| 9.50 | % |
| 2/15/20 |
|
|
| 1,099,197 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 19,702,621 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 19
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal National Mortgage Association: |
| ||||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
| 875,910 |
| 3.00 | % |
| 8/25/32 |
|
|
| 798,714 |
| 2,773,488 |
| 3.50 | % |
| 2/25/33 |
|
|
| 2,527,683 |
| 558,913 |
| 3.50 | % |
| 3/25/33 |
|
|
| 523,013 |
| 281,784 |
| 3.50 | % |
| 8/25/33 |
|
|
| 251,663 |
| 1,007,769 |
| 3.50 | % |
| 6/25/35 |
|
|
| 975,093 |
| 701,413 |
| 3.75 | % |
| 5/25/33 |
|
|
| 638,310 |
| 838,964 |
| 4.00 | % |
| 11/25/32 |
|
|
| 812,475 |
| 263,860 |
| 4.00 | % |
| 1/25/33 |
|
|
| 249,710 |
| 1,147,380 |
| 4.00 | % |
| 3/25/33 |
|
|
| 1,080,980 |
| 1,319,526 |
| 4.00 | % |
| 5/25/33 |
|
|
| 1,248,682 |
| 167,942 |
| 5.00 | % |
| 8/25/22 |
|
|
| 167,273 |
| 1,280,232 |
| 5.00 | % |
| 11/25/32 |
|
|
| 1,262,139 |
| 4,865,363 |
| 5.50 | % |
| 5/25/25 |
|
|
| 4,824,478 |
| 947,858 |
| 5.50 | % |
| 1/25/37 |
|
|
| 912,029 |
| 4,909,292 |
| 6.50 | % |
| 10/25/17 |
|
|
| 5,064,043 |
| 674,023 |
| 6.51 | % |
| 8/25/37 |
|
|
| 670,770 |
| 64,933 |
| 6.85 | % |
| 12/18/27 |
|
|
| 67,206 |
| 85,680 |
| 7.00 | % |
| 1/25/21 |
|
|
| 90,230 |
| 107,601 |
| 7.00 | % |
| 2/25/44 |
|
|
| 115,020 |
| 130,490 |
| 7.50 | % |
| 8/20/27 |
|
|
| 139,859 |
| 1,782,713 |
| 7.50 | % |
| 6/25/32 |
|
|
| 1,912,956 |
| 457,910 |
| 7.50 | % |
| 11/25/40 |
|
|
| 481,927 |
| 4,599,463 |
| 7.50 | % |
| 11/25/43 |
|
|
| 4,828,001 |
| 661,166 |
| 7.50 | % |
| 6/25/44 |
|
|
| 713,715 |
| 34,703 |
| 7.70 | % |
| 3/25/23 |
|
|
| 36,903 |
| 169,188 |
| 8.00 | % |
| 7/25/22 |
|
|
| 182,781 |
| 187,871 |
| 8.00 | % |
| 7/25/22 |
|
|
| 203,312 |
| 100,000 |
| 8.00 | % |
| 7/18/27 |
|
|
| 109,198 |
| 354,358 |
| 8.00 | % |
| 7/25/44 |
|
|
| 391,753 |
| 38,457 |
| 8.20 | % |
| 4/25/25 |
|
|
| 39,490 |
| 22,310 |
| 8.50 | % |
| 1/25/21 |
|
|
| 24,053 |
| 22,727 |
| 8.50 | % |
| 4/25/21 |
|
|
| 23,415 |
| 195,950 |
| 8.50 | % |
| 9/25/21 |
|
|
| 214,472 |
| 79,846 |
| 8.50 | % |
| 1/25/25 |
|
|
| 84,580 |
| 1,820,063 |
| 8.50 | % |
| 6/25/30 |
|
|
| 1,946,913 |
| 472,482 |
| 8.50 | % |
| 6/25/30 |
|
|
| 503,891 |
| 55,716 |
| 8.75 | % |
| 9/25/20 |
|
|
| 58,730 |
| 132,826 |
| 8.95 | % |
| 10/25/20 |
|
|
| 144,693 |
| 384,524 |
| 9.00 | % |
| 7/25/19 |
|
|
| 417,039 |
| 233,360 |
| 9.00 | % |
| 12/25/19 |
|
|
| 253,947 |
| 86,258 |
| 9.00 | % |
| 5/25/20 |
|
|
| 91,983 |
| 45,311 |
| 9.00 | % |
| 6/25/20 |
|
|
| 50,029 |
| 131,812 |
| 9.00 | % |
| 6/25/20 |
|
|
| 141,162 |
| 20,188 |
| 9.00 | % |
| 7/25/20 |
|
|
| 22,097 |
| 130,774 |
| 9.00 | % |
| 9/25/20 |
|
|
| 142,778 |
| 67,459 |
| 9.00 | % |
| 10/25/20 |
|
|
| 74,509 |
| 998,948 |
| 9.00 | % |
| 1/25/21 |
|
|
| 1,106,352 |
| 158,795 |
| 9.00 | % |
| 3/1/24 |
|
|
| 172,025 |
|
|
|
|
|
|
|
|
|
|
|
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Market Value ($)(1) |
|
|
|
|
|
|
| ||||
| ||||||||||
| 1,113,481 |
| 9.00 | % |
| 11/25/28 |
|
|
| 1,177,421 |
| 4,670,915 |
| 9.05 | % |
| 2/25/44 |
|
|
| 5,181,120 |
| 119,387 |
| 9.25 | % |
| 1/25/20 |
|
|
| 130,776 |
| 93,477 |
| 9.50 | % |
| 12/25/18 |
|
|
| 101,527 |
| 204,805 |
| 9.50 | % |
| 3/25/20 |
|
|
| 229,086 |
| 48,311 |
| 9.50 | % |
| 4/25/20 |
|
|
| 51,923 |
| 165,775 |
| 9.50 | % |
| 5/25/20 |
|
|
| 182,239 |
| 194,116 |
| 9.50 | % |
| 11/25/20 |
|
|
| 211,631 |
| 64,279 |
| 9.50 | % |
| 11/25/31 |
|
|
| 70,216 |
| 298,215 |
| 9.60 | % |
| 3/25/20 |
|
|
| 328,559 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 44,456,572 |
|
|
|
|
|
|
|
|
|
| |
Government National Mortgage Association: |
| |||||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
| 428,781 |
| 4.00 | % |
| 10/17/29 |
|
|
| 409,268 |
| 3,577,770 |
| 8.00 | % |
| 10/16/29 |
|
|
| 3,823,190 |
| 289,640 |
| 8.00 | % |
| 1/16/30 |
|
|
| 301,786 |
| 938,764 |
| 8.00 | % |
| 3/16/30 |
|
|
| 1,027,625 |
| 3,175,848 |
| 8.50 | % |
| 9/20/30 |
|
|
| 3,250,805 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 8,812,674 |
|
|
|
|
|
|
|
|
|
| |
Vendee Mortgage Trust: |
|
|
| |||||||
| Par ($) |
| Coupon |
|
| Maturity |
|
|
| Mkt. Value ($)(1) |
|
|
|
|
|
|
| ||||
| 1,000,000 |
| 5.00 | % |
| 8/15/28 |
|
|
| 1,010,533 |
| 1,000,000 |
| 5.00 | % |
| 7/15/30 |
|
|
| 950,558 |
| 120,697 |
| 5.63 | % |
| 2/15/24 |
|
|
| 122,771 |
| 1,752,816 |
| 6.00 | % |
| 2/15/30 |
|
|
| 1,799,497 |
| 9,748,315 |
| 6.50 | % |
| 12/15/28 |
|
|
| 10,072,094 |
| 3,743,900 |
| 7.00 | % |
| 3/15/28 |
|
|
| 3,932,340 |
| 418,631 |
| 7.25 | % |
| 9/15/25 |
|
|
| 442,325 |
| 6,651,601 |
| 8.21 | % |
| 3/15/25 |
|
|
| 7,254,402 |
| 303,543 |
| 8.29 | % |
| 12/15/26 |
|
|
| 334,215 |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| 25,918,735 |
|
|
|
|
|
|
|
|
|
| |
| ||||||||||
Total collateralized mortgage obligations |
|
| 98,890,602 | |||||||
|
|
|
|
|
|
|
|
|
|
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Par ($) |
| Coupon |
| Maturity |
| Market Value ($)(1) |
| |||
|
|
|
| |||||||
| ||||||||||
Short-Term Securities (8.4%) (2) |
|
|
| |||||||
695,000 |
|
| FNMA A.D.N., 1.10%, 10/14/08 |
|
| 694,724 |
| |||
1,506,000 |
|
| FHLB A.D.N., 1.00%, 10/6/08 |
|
| 1,505,791 |
| |||
410,000 |
|
| FHLB A.D.N., 1.00%, 10/8/08 |
|
| 409,920 |
| |||
3,150,000 |
|
| FHLB A.D.N., 1.00%, 10/10/08 |
|
| 3,149,213 |
| |||
5,000,000 |
|
| FHLB A.D.N., 2.08%, 10/15/08 |
|
| 4,995,956 |
| |||
1,200,000 |
|
| FFCB A.D.N., 0.90%, 10/10/08 |
|
| 1,199,730 |
| |||
950,000 |
|
| FFCB A.D.N., 1.00%, 10/10/08 |
|
| 949,657 |
| |||
2,405,000 |
|
| FHLMC A.D.N., 0.95%, 10/14/08 |
|
| 2,404,175 |
| |||
5,000,000 |
|
| FHLMC A.D.N., 1.00%, 10/8/08 |
|
| 4,999,028 |
| |||
9,362,250 |
|
| Dreyfus Cash Fund, 1.72% |
|
| 9,362,250 |
| |||
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
| 29,670,444 |
|
|
|
|
|
|
|
|
|
| ||
Total short-term securites |
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities | $ | 352,843,278 |
| |||||||
|
|
|
|
|
|
* U.S. Treasury inflation-protected securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount.
See accompanying notes to portfolios of investments on page 52. 21
|
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|
|
|
|
|
| |
| Six Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 9/30/08: |
| $8.65 Per Share |
3/31/08: |
| $9.16 Per Share |
Total Net Assets: |
| $229.7 Million |
30-day SEC Yield: |
| 5.13% |
Tax Equivalent Yield: |
| 7.89%(1) |
12-Month Distribution Rate: |
| 4.28% |
Average Maturity: |
| 14.4 Years |
Duration to Estimated Avg. Life: |
| 4.9 Years(2) |
Implied Duration: |
| 5.6 Years(2) |
|
|
|
| (1) | For individuals in the 35.0% federal tax bracket. |
| (2) | See next page. |
|
PORTFOLIO STRUCTURE |
22
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|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
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|
|
|
|
|
| ||
|
|
| Sit |
| Lehman |
| Lipper | ||||
3 Month** |
| -4.32 | % |
| 0.66 | % |
| -4.52 | % | ||
6 Month** |
| -3.51 |
|
| -0.15 |
|
| N/A |
| ||
1 Year |
| -5.25 |
|
| 3.72 |
|
| -4.82 |
| ||
5 Years |
| 1.43 |
|
| 2.81 |
|
| 2.08 |
| ||
10 Years |
| 2.49 |
|
| 4.25 |
|
| 3.33 |
| ||
Inception |
| 5.12 |
|
| 5.64 |
|
| 5.65 |
| ||
| (9/29/88) |
|
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| |
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| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
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|
|
| |
|
|
| Sit |
| Lehman |
| Lipper | ||||
1 Year |
| -5.25 | % |
| 3.72 | % |
| -4.82 | % | ||
5 Year |
| 7.34 |
|
| 14.84 |
|
| 10.86 |
| ||
10 Year |
| 27.86 |
|
| 51.62 |
|
| 38.79 |
| ||
Inception |
| 171.81 |
|
| 199.84 |
|
| 200.18 |
| ||
(9/29/88) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| |
*As of 9/30/08. |
|
|
|
|
| **Not annualized. | |||||
|
|
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|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary; and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance; however, fees and expenses are not incorporated in the Lehman 5-Year Muni. Bond Index. The Lipper returns are obtained from Lipper Analytical Services, Inc., a large independent evaluator of mutual funds.
(2) Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity.
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (9/29/88) and held until 9/30/08 would have grown to $27,181 in the Fund or $29,984 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
23
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Municipal Bonds (89.9%) (2) |
|
|
|
|
|
|
|
Alabama (1.2%) |
|
| ||
675,000 |
| ASMS Pub. Educ. Bldg. Rev Series 2006-B (ASMSF LLC Proj.) (Ambac insured), 4.375%, 9/1/26 |
| 623,025 |
675,000 |
| Birmingham-Southern College Private Educ. Bldg. Rev. Series 1997, 5.35%, 12/1/19 |
| 608,992 |
1,000,000 |
| Huntsville Hlth. Care Auth. Rev. Series 2002-A, 5.625%, 6/1/32 |
| 974,350 |
600,000 |
| Huntsville-Redstone V1g. Spl. Care Facs. Fin. Auth. Rev Series 2007 (Redstone Vlg. Proj.), 5.25%, 1/1/15 |
| 553,488 |
|
|
|
| |
|
|
|
| 2,759,855 |
|
|
|
| |
Alaska (0.4%) |
|
|
|
|
325,000 |
| Alaska Indl. Dev. & Expt. Auth. Cmnty. Provider Rev. Series 2007 (Boys & Girls Home Proj.), 5.45%, 12/1/11 |
| 314,415 |
500,000 |
| Alaska Hsg. Fin. Corp. Gen. Mtg. Rev. Series 1999-A, 6.00%, 6/1/49 |
| 502,790 |
|
|
|
| |
|
|
|
| 817,205 |
|
|
|
| |
Arizona (3.4%) |
|
|
|
|
1,145,154 |
| Arizona Hlth. Facs. Auth. Rev. Series 2007-A (New Ariz. Family Proj.), 5.25%, 7/1/27 |
| 1,016,989 |
500,000 |
| Flagstaff Indl. Dev. Auth. Rev. Ref. Series 2007 (Sr. Living Cmnty. Proj.), 5.50%, 7/1/22 |
| 429,640 |
50,000 |
| Maricopa Co. Pollution Ctrl. Rev. Ref. Public Svc. Series 1996-A (New Mexico Public Svc. Co. Proj.), |
|
|
|
| 6.30%, 12/1/26 |
| 45,708 |
|
| Pima Co. Indl. Dev. Auth. Educ. Rev.: |
|
|
295,000 |
| Series 2004-I (AZ Charter Schools Proj.), 5.00%, 7/1/12 |
| 285,864 |
250,000 |
| Series 2004-I (AZ Charter Schools Proj.), 6.10%, 7/1/24 |
| 220,028 |
250,000 |
| Series 2004-A (Noah Webster Basic School Proj.), 5.25%, 12/15/16 |
| 237,030 |
210,000 |
| Series 2005-M (AZ Charter Schools Proj.), 5.70%, 7/1/23 |
| 183,013 |
635,000 |
| Series 2006 (Choice Educ. & Dev. Corp. Proj.), 6.00%, 6/1/16 |
| 612,654 |
900,000 |
| Series 2006-A (Sonoran Science Academy Proj.). 5.35%, 12/1/17 |
| 821,700 |
455,000 |
| Series 2007-A (American Charter Schools Foundation Proj.), 5.125%, 7/1/15 |
| 432,755 |
545,000 |
| Series 2007-O (AZ Charter Schools Proj.), 4.65%, 7/1/14 |
| 506,839 |
400,000 |
| Ref. Series 2007 (Tucson Country Day School Proj.), 5.00%, 6/1/22 |
| 339,380 |
500,000 |
| Series 2007 (Center For Academic Success Proj.), 5.375%, 7/1/22 |
| 443,070 |
250,000 |
| Series 2008-A (Cora1Academy Science Proj.), 6.375%, 12/1/18 |
| 240,755 |
565,000 |
| Pinal Co. Indl. Dev. Auth. Correctional Fac. Rev. Series 2006-A (Florence West Prison Proj.) |
|
|
|
| (ACA insured), 5.25%, 10/1/23 (5) |
| 479,188 |
|
| Quail Creek Cmnty. Fac. Dist. G.O. Series 2006: |
|
|
585,000 |
| 4.85%, 7/15/12 |
| 568,866 |
500,000 |
| 5.15%, 7/15/16 |
| 467,485 |
500,000 |
| Westpark Cmnty. Facilities Dist. G.O. Series 2006, 4.90%, 7/15/16 |
| 458,990 |
|
|
|
| |
|
|
|
| 7,789,954 |
|
|
|
| |
California (4.2%) |
|
|
|
|
120,000 |
| Bay Area Govt. Assoc. Tax Allocation Rev. Series 1994-A (FSA insured), 6.00%, 12/15/14 |
| 120,664 |
250,000 |
| Blythe Redev. Agy. Tax Allocation Ref. Series 1997 (Proj. No.1), 5.80%, 5/1/28 |
| 220,195 |
325,000 |
| CA Co. Tobacco Securitization Agy. Asset-Backed Rev. Series 2002 (Alameda Co.), 4.75%, 6/1/19 |
| 304,278 |
350,000 |
| CA Co. Tobacco Securitization Agy. Asset-Backed Conv. Bond Rev. Series 2007-B, 5.10%, 6/1/28 |
| 248,342 |
|
| CA Co. Tobacco Securitization Agy. Rev. Series 2007-A (Golden Gate Tob. Proj.): |
|
|
445,000 |
| 4.50%, 6/1/21 |
| 381,703 |
500,000 |
| 5.00%, 6/1/36 |
| 347,150 |
|
| CA Cmnty. Hsg. Fin. Agy. Lease Rev. Pass Thru Oblig.: |
|
|
120,000 |
| Series 2005-D, 4.875%, 4/1/12 |
| 112,274 |
355,000 |
| Series 2005-F, 4.85%, 11/1/12 |
| 330,995 |
495,000 |
| CA Govt. Fin. Auth. Lease Rev. Series 2003-A (Placer Co. Transportation Proj.), 6.00%, 12/1/28 |
| 478,670 |
150,000 |
| CA Hlth. Facs. Fin. Auth. Rev. Series 1998-A (Kaiser Permanente Proj.), 5.50%, 6/1/22 |
| 153,204 |
600,000 |
| CA Fin. Auth. Educ. Rev. Series 2006-A (American Heritage Educ. Fndtn. Proj.), 5.25%, 6/1/26 |
| 506,226 |
220,000 |
| CA St. Dept. Wtr. Res. Rev. Series 1996-Q (Cent. Vy. Proj.) (MBIA insured), 5.375%, 12/1/27 |
| 219,331 |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
| CA Public Works Board Lease Rev. Series 1993-A (Various CA State Univ. Proj.): |
|
|
300,000 |
| 5.25%, 12/1/13 (5) |
| 300,426 |
625,000 |
| 5.50%, 12/1/18 |
| 625,306 |
1,000,000 |
| CA Statewide Cmntys. Dev. Auth. Rev. Series 2007 (Lancer Educ. Student Hsg. Proj.), 5.40%, 6/1/17 |
| 941,120 |
450,000 |
| CA Statewide Cmntys. Dev. Auth. Spl. Tax Series 2007-1 (Orinda Proj.), 6.00%, 9/1/29 |
| 404,559 |
990,000 |
| CA Statewide Cmntys. Dev. Auth. Multifamily Rev. Series 2001 (Orange Tree Proj.) |
|
|
|
| (GNMA collateralized), 6.15%, 11/20/36 |
| 1,028,362 |
235,000 |
| Garden Grove C.O.P Series 1993 (Bahia Village/Emerald Isle Proj.)(FSA insured), 5.70%, 8/1/23 |
| 235,813 |
750,000 |
| Los Angeles Hsg. Auth. Rev. Series 2007-A (Radian insured), 5.00%, 6/1/29 |
| 617,085 |
500,000 |
| Northern CA Gas Auth. No. 1 Rev. Series 2007, variable rate, 7/1/27 |
| 255,000 |
250,000 |
| Rancho Mirage Joint Pwrs. Fin. Auth. C.O.P. Series 1997-B Rmktg. (Eisenhower Med. Proj.), |
|
|
|
| (MBIA insured), 4.875%, 7/1/22 |
| 230,948 |
500,000 |
| Sacramento Co. Wtr. Fin. Auth. Rev. Series 2007-B (Wtr. Agy. Zones 40 & 41 Proj.), Variable rate, 6/1/39 |
| 307,500 |
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 |
| 264,000 |
250,000 |
| San Joaquin Hills Toll Rd. Rev. Refunding Series 1997-A, 5.25%, 1/15/30 |
| 215,035 |
|
| Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev. Series 2006: |
|
|
95,000 |
| 4.50%, 3/1/11 |
| 93,906 |
385,000 |
| 4.875%, 3/1/16 |
| 364,865 |
250,000 |
| Stockton Pub. Fin. Rev. Series 2006-A (Redevelopment Projects) (Radian insured), 5.00%, 9/1/22 |
| 221,003 |
250,000 |
| Yuba Redev. Agy. Tax. Allocation Series 2007, 5.125%, 9/1/27 |
| 211,185 |
|
|
|
| |
|
|
|
| 9,739,145 |
|
|
|
| |
Colorado (2.5%) |
|
| ||
250,000 |
| Baptist Rd. Rural Transportation Auth. Sales & Use Tax. Rev. Series 2007, 4.80%, 12/1/17 |
| 218,010 |
|
| CO HFA Single Family Program Senior Series: |
|
|
10,000 |
| 1996B-2, 7.45%, 11/1/27 |
| 10,164 |
15,000 |
| 1997B-3, 6.80%, 11/1/28 |
| 15,233 |
750,000 |
| 2008A-5, 5.00%, 11/1/34 |
| 740,655 |
|
| CO Hlth. Fac. Auth. Rev.: |
|
|
160,000 |
| Series 2000-A (Porter Place Proj.) (GNMA collateralized), 5.10%, 1/20/11 |
| 163,026 |
160,000 |
| Unrefunded Balance Rev. Series 2000 (Evangelical Lutheran Proj.), 6.25%, 12/1/10 |
| 165,749 |
1,000,000 |
| Compark Business Campus Met. Dist. Ref. & Impt. G.O. Series 2007-A (Radian insured), 5.75%, 12/1/27 |
| 915,300 |
1,000,000 |
| Denver Hlth. & Hosp. Auth. Healthcare Rev. Series 2007-B, variable rate, 12/1/33 |
| 610,000 |
250,000 |
| E-470 Pub. Hwy. Auth. Rev. Series 2007C-1, 5.50%, 9/1/24 |
| 233,397 |
500,000 |
| Fruita Rev. Series 2008 (Family Health West Proj.), 7.00%, 1/1/18 |
| 487,015 |
|
| Interlocken Met. Dist. Ref: |
|
|
250,000 |
| Impt. G.O. Series 1999-B (Radian insured), 5.75%, 12/15/19 |
| 229,612 |
250,000 |
| G.O. Series 1999-A (Radian insured), 5.75%, 12/15/19 |
| 229,612 |
919,563 |
| Lyons Rev. Series 2006 (Longmont Humane Soc. Proj.), 4.75%, 11/30/16 |
| 841,676 |
500,000 |
| Maher Ranch Met. Dist. No. 4 Ref. G.O. Series 2007 (Radian insured), 5.25%, 12/1/36 |
| 401,725 |
250,000 |
| Public Auth For Colorado Energy Nat. Gas Pur. Rev. Series 2008, 5.75%, 11/15/18 |
| 220,665 |
500,000 |
| Walker Field Pub. Airport Auth. Rev. Series 2007, 4.75%, 12/1/27 |
| 387,485 |
|
|
|
| |
|
|
|
| 5,869,324 |
|
|
|
| |
Connecticut (0.4%) |
|
| ||
450,000 |
| CT Hlth. & Educ. Facs. Auth. Rev. Series 1995-C (Bridgeport Hosp. Proj.) |
|
|
|
| (Connie Lee insured), 5.25%, 7/1/15 |
| 450,652 |
300,000 |
| Series 1997-B, 5.75%, 9/1/18 |
| 269,910 |
500,000 |
| Series 1999-B, zero coupon, 5.12% effective yield, 9/1/26 |
| 305,470 |
|
|
|
| |
|
|
|
| 1,026,032 |
|
|
|
| |
Delaware (0.2%) |
|
| ||
500,000 |
| Millsboro Spl. Oblig. Rev. Series 2007-A (Plantation Lakes Spl. Dev. Proj.), 5.45%, 7/1/36 |
| 379,580 |
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 25
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
Florida (8.3%) |
|
| |||
| 80,000 |
| Arbor Greene Cmnty. Dev. Dist. Spl. Assmt. Rev. Ref. Series 2006, 5.00%, 5/1/19 |
| 73,558 |
| 780,000 |
| Belmont Cmnty. Dev. Dist. Cap. Impt. Rev. Series 2006-B, 5.125%, 11/01/14 |
| 670,153 |
| 100,000 |
| Broward Co. Hsg. Fin. Auth. Multifamily Hsg. Rev. Ref. Series 1996 (Tamarac Pointe Apt. Proj.) (GNMA collateralized), 6.15%, 7/1/16 |
| 100,116 |
|
|
| Capital Trust Agy. Multifamily Rev. Sr. Series 2003-A: |
|
|
| 535,000 |
| (Golf Villas, Rivermill, and Village Square Apts. Proj.), 4.75%, 6/1/13 |
| 482,757 |
| 1,000,000 |
| (American Opportunity Proj.), 5.875%, 6/1/38 |
| 761,060 |
| 40,000 |
| Clearwater Hsg. Auth. Rev. Ref. Series 1997 (Hamptons At Clearwater Proj.) (ACA insured), 5.40%, 5/1/13 |
| 38,986 |
| 45,000 |
| Cocoa Cap. Impt. Rev. Series 1998 (MBIA insured), 5.00%, 10/1/22 |
| 43,894 |
| 50,000 |
| Collier Co. Indl. Dev. Auth. Hlth. Care Facs. Rev. Series 2004 (Naples Cmnty. Hosp. Proj.), 4.65%, 10/1/34 |
| 48,491 |
| 440,000 |
| Concorde Estates Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2004-B, 5.00%, 5/1/11 |
| 415,523 |
| 400,000 |
| Connerton West Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2007-B, 5.125%, 5/1/16 |
| 345,764 |
| 630,000 |
| Escambia Co. Hlth. Facs. Auth. Rev. Series 1998 (Baptist Hosp. & Manor Proj.), 5.125%, 10/1/19 |
| 588,470 |
| 100,000 |
| Fiddlers Creek Cmnty. Dev. Dist. No. 2 Spl. Assmt. Rev. Series 2003-B, 5.75%, 5/1/13 |
| 94,228 |
| 25,000 |
| FL Brd. Pub. Educ. Cap. Outlay G.O. Ref. Series 1989-A, 5.00%, 6/1/24 |
| 24,625 |
| 45,000 |
| FL Correctional Privatization Commn. Certificate of Participation Series 1995-B |
|
|
|
|
| (Polk Co. 350 Bed Youth Proj.), 5.00%, 8/1/17 |
| 45,053 |
| 85,000 |
| Forest Creek Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2005-B, 4.85%, 5/1/11 |
| 79,036 |
| 350,000 |
| Heritage Isle At Viera Cmnty. Dev. Dist. Special Assessment Series 2006, 5.00%, 11/1/13 |
| 314,905 |
|
|
| Highlands Co. Hlth. Fac. Auth. Hosp. Rev. (Aventist Hlth. Proj.): |
|
|
| 90,000 |
| Ref. Series 2005-B, 5.00%, 11/15/30 |
| 76,606 |
| 200,000 |
| Series 2006-C, 5.25%, 11/15/36 |
| 171,776 |
| 80,000 |
| Hillsborough Co. Educ. Facs. Auth Rev. Ref. Series 1998 (Univ. of Tampa Proj.), 5.75%, 4/1/18 |
| 82,109 |
| 250,000 |
| Hillsborough Co. Indl. Dev. Auth. Hosp. Rev. Ref. Series 2003-B (Tampa Gen. Hosp. Proj.), 5.25%, 10/1/28 |
| 218,582 |
| 165,000 |
| Gateway Services Cmnty. Dev. Dist. Spl. Assmt. Series 2003-B (Sun City Ctr. Proj.), 5.50%, 5/1/10 |
| 162,056 |
| 250,000 |
| Gramercy Farms Cmnty. Dev. Dist. Spl. Assessment Series 2007-B, 5.10%, 5/1/14 |
| 193,107 |
| 560,000 |
| Jacksonville Econ. Dev. Commn. Hlth. Care Facs. Rev. Ref. Series 2007-A |
|
|
|
|
| (FL Proton Therapy Inst. Proj.), 6.00%, 91/17 |
| 531,082 |
| 500,000 |
| Jacksonville Hlth. Facs. Auth. Rev. Series 2007 (Brooks Hlth. Sys. Proj.), 5.00%, 11/1/22 |
| 441,140 |
| 500,000 |
| Lake Ashton Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/11 |
| 459,650 |
|
|
| Lakeland Hosp. Sys. Rev. Ref.: |
|
|
| 165,000 |
| Series 1996 (Lakeland Regl. Med. Center Proj.), 5.25%, 11/15/25 |
| 160,987 |
| 250,000 |
| Lakeland Retirement Cmnty. Rev. Ref. Series 2008 (Carpenters Inv. Proj.), 5.875%, 1/1/19 |
| 233,935 |
| 1,000,000 |
| Lee Co. Indus. Dev. Auth. Hlth. Care Fac. Rev. Series 2007-A (Lee Charter Foundation), 5.25%, 6/15/27 |
| 772,220 |
| 250,000 |
| Magnolia Creek Cmnty. Dev. Dist. Rev. Series 2007-B, 5.60%, 5/1/14 |
| 223,370 |
| 300,000 |
| Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.25%, 11/1/14 |
| 257,583 |
| 500,000 |
| Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2008-B, 6.90%, 5/1/17 |
| 478,175 |
| 820,000 |
| Miami Beach Hlth. Facs. Auth. Hosp. Rev. Series 1998 (Mt. Sinai Med. Ctr. Proj.), 5.375%, 11/15/28 |
| 628,858 |
| 100,000 |
| Miami Beach Stormwater Rev. Series 2000 (FGIC insured), 5.25%, 9/1/25 |
| 92,292 |
|
|
| Miami - Dade Co. Spl. Obligation: |
|
|
| 265,000 |
| Sub. Series 1997-B, zero coupon, 5.44% effective yield, 10/1/33 |
| 55,520 |
| 100,000 |
| Cap. Apprec. & Income Sub Series 2005-B, variable rate, 10/1/35 |
| 78,054 |
| 40,000 |
| Miami-Dade Co. Pub. Service Tax Rev. Series 1999 (UMSA Pub. Impts. Proj.), 5.00%, 10/1/23 |
| 39,052 |
| 1,000,000 |
| New River Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 5/1/13 |
| 637,360 |
| 70,000 |
| Orange Co. Hlth. Facs. Auth. Rev. Ref. Series 2005 (Orlando Lutheran Proj.), 4.625%, 7/1/09 |
| 69,230 |
| 60,000 |
| Orlando & Orange Co. Expressway Auth. Rev. Jr. Lien Series 1998, 5.00%, 7/1/28 |
| 55,255 |
|
|
| Palm Beach Co. Hlth. Fac. Auth. Rev.: |
|
|
| 500,000 |
| Series 1997 (Abbey Delray South Proj.), 5.50%, 10/1/11 |
| 498,895 |
| 200,000 |
| Ref. Series 2003 (Abbey Delray South Proj.), 5.15%, 10/1/12 |
| 199,506 |
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| 90,000 |
| Series 1993 (Jupiter Med. Ctr. Inc. Proj.) (FSA insured), 5.25%, 8/1/18 |
| 90,095 |
|
|
| Series 2007 (Waterford Proj.): |
|
|
| 250,000 |
| 5.25%, 11/15/17 |
| 238,113 |
| 500,000 |
| 5.375%, 11/15/22 |
| 437,570 |
| 10,000 |
| Parklands Lee Cmnty. Dev. Dist. Spl. Assmt. Series 2004-B, 5.125%, 5/1/11 |
| 9,473 |
| 55,000 |
| Pinellas Co. Swr. Rev. Ref. Unrefunded Balance Series 1998 (FGIC insured), 5.00%, 10/1/24 |
| 55,552 |
| 750,000 |
| Riverwood Estates Cmnty. Dev. Dist. Spl. Assessment Series 2006-B, 5.00%, 5/1/13 |
| 471,863 |
| 500,000 |
| Sarasota Co. Hlth. Facs. Auth. Retirement Rev. Ref. Series 2007 (Village on the Isle Proj.), 5.50%, 1/1/27 |
| 413,465 |
| 250,000 |
| Sarasota Natl. Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2007, 5.30%, 5/1/39 |
| 171,180 |
| 500,000 |
| Seminole Tribe Spl. Oblig. Rev. Series 2007-A, 5.50%, 10/1/24 |
| 447,965 |
| 500,000 |
| St. Johns Co. Indl. Dev. Auth. Hlth. Care Rev. Ref. Series 2007-A (Bayview Proj.), 5.00%, 10/1/17 |
| 433,130 |
| 780,000 |
| South Lake Co. Hosp. Dist. Rev. Series 2003 (South Lake Hosp. Inc. Proj.), 5.50%, 10/1/13 |
| 813,704 |
| 850,000 |
| Sterling Hill Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series, 5.10%, 5/1/11 |
| 793,365 |
| 1,000,000 |
| Stoneybrook South Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.45%, 11/1/15 |
| 873,830 |
| 750,000 |
| Tolomato Cmnty. Dev. Dist. Spl. Assmt. Series 2007, 6.375%, 5/1/17 |
| 715,425 |
| 915,000 |
| Verano Ctr. Cmnty. Dev. Dist. Spl. Assessment Series 2006-B (Dist. No.1 Infrastructure Proj.). 5.00%, 11/1/12 |
| 817,909 |
| 740,000 |
| Waters Edge Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/12 |
| 627,076 |
| 500,000 |
| Waterset North Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 6.55%, 11/1/15 |
| 460,045 |
| 50,000 |
| West Villages Impt. Dist. Spl. Assmt. Rev. Series 2006 (Unit of Dev. No.3), 5.50%, 5/1/37 |
| 34,982 |
| 500,000 |
| Zephyr Ridge Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2006-B, 5.25%, 5/1/13 |
| 327,395 |
|
|
|
|
| |
|
|
|
|
| 19,175,156 |
|
|
|
|
| |
Georgia (1.4%) |
|
| |||
| 690,000 |
| Chatham Co. Hosp. Auth. Rev. & Impt. Series 2004-A (Mem. Health Univ. Proj.), 5.50%, 1/1/34 |
| 509,917 |
| 1,490,000 |
| East Point Tax Allocation Series 2002-A, 8.00%, 2/1/26 |
| 1,551,820 |
| 750,000 |
| Fulton Co. Dev. Auth. Rev. Series 2007-A, 5.25%, 11/1/28 |
| 590,550 |
| 250,000 |
| Gainesville Redev. Auth. Educ. Facs. Rev. Ref. Series 2007 (Riverside Military Academy Proj.), 5.125%, 3/1/27 |
| 200,885 |
| 285,000 |
| Main St. Nat. Gas Inc. Rev. Series 2008-A (GA Gas Proj.), 5.50%, 7/15/17 |
| 37,050 |
| 250,000 |
| Medical Ctr. Hosp. Auth. Rev. Ref. Series 2007 (Spring Harbor Green Isl. Proj.), 5.25%, 7/1/27 |
| 194,977 |
| 100,000 |
| Private Colleges & Univ. Auth. Rev. Ref. Series 2001 (Mercer Univ. Proj.), 5.00%, 10/1/11 |
| 102,656 |
|
|
|
|
| |
|
|
|
|
| 3,187,855 |
|
|
|
|
| |
Idaho (0.3%) |
|
| |||
|
|
| ID Hsg. & Fin. Assn. Nonprofit Facs. Rev. Series 2008-A: |
|
|
| 250,000 |
| (Idaho Arts Charter School Proj.), 5.50%, 12/1/18 |
| 231,407 |
| 250,000 |
| (Liberty Charter School Proj.), 5.50%, 6/1/21 |
| 229,425 |
| 250,000 |
| (Victory Charter School Proj.), 5.625%, 7/1/21 |
| 233,050 |
|
|
|
|
| |
|
|
|
|
| 693,882 |
|
|
|
|
| |
Illinois (8.6%) |
|
| |||
| 300,000 |
| Annawan Tax Allocation Series 2007 (Patriot Renewable Fuels, LLC Proj.), 5.625%, 1/1/18 |
| 262,254 |
| 20,000 |
| Chicago Metro Hsg. Dev. Corp. Mtg. Rev. Ref. Series 1992-A (FHA insured) (Section 8), |
|
|
|
|
| 6.85%, 7/1/22 |
| 20,650 |
| 250,000 |
| Du Page Co. Spl. Svc. Areano 31 Spl. Tax Series 2006 (Monarch Landing Proj.), 5.40%, 3/1/16 |
| 230,950 |
| 500,000 |
| Harvey Ref. & Impt. G.O. Series 2007-A, 5.50%, 12/1/27 |
| 442,105 |
| 500,000 |
| IL DFA Rev. Ref. Series 2007 (Chicago Charter School Fdh. Proj.), 5.00%, 12/1/36 |
| 377,660 |
| 1,000,000 |
| IL Fin. Auth. Rev. Ref. Series 2007-A (Christian Homes, Inc. Proj.), 5.25%, 5/15/12 |
| 946,560 |
| 275,000 |
| IL DFA Pollution Control Rev. Ref. Series 2000-A (Ameren CIPS Proj.), 5.50%, 3/1/14 |
| 260,549 |
|
|
| IL DFA Refunding & New Money Rev. (Cmty. Rehab. Providers Fac. Acquisition Program): |
|
|
| 120,000 |
| Series 1997-A, 6.05%, 7/1/19 |
| 120,102 |
| 150,000 |
| Series 1998-A, 5.70%, 7/1/19 |
| 147,270 |
| 270,000 |
| Series 2002-A (Cmnty. Rehab. Providers Fac. Proj.), 5.70%, 7/1/12 |
| 277,673 |
See accompanying notes to portfolios of investments on page 52. 27
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
| IL Fin. Auth. Rev.: |
|
|
| 500,000 |
| Series 2006-B (Rush Univ. Med. Center Proj.) (MBIA insured), 5.75%, 11/1/28 |
| 471,590 |
| 750,000 |
| Ref. Series 2006 (Luther Hillside Village Proj.), 5.25%, 2/1/37 |
| 635,197 |
| 700,000 |
| Series 2006-A (Three Crowns Park Plaza Proj.), 5.875%, 2/15/38 |
| 568,855 |
| 500,000 |
| Series 2006 (Tabor Hills Supportive Living Proj.), 5.25%, 11/15/26 |
| 409,545 |
|
|
| Series 2006-A (Montgomery Place Proj.): |
|
|
| 1,250,000 |
| 5.25%, 5/15/15 |
| 1,126,900 |
| 500,000 |
| 5.75%, 5/15/38 |
| 387,775 |
| 500,000 |
| Series 2007-A (Sedgebrook, Inc. Fac. Proj.), 5.40%, 11/15/16 |
| 458,150 |
|
|
| IL Fin. Auth. Sports Fac. Rev.: |
|
|
|
|
| Series 2007-A (United Sports Org. of Barrington Proj.) (UTD insured): |
|
|
| 500,000 |
| 6.125%, 10/1/27 |
| 433,675 |
| 500,000 |
| 6.25%, 10/1/37 |
| 411,440 |
| 1,000,000 |
| Series 2008 (North Shore Ice Arena Proj.), 6.25%, 12/1/38 |
| 871,710 |
|
|
| IL Hlth. Fac. Auth. Rev.: |
|
|
| 350,000 |
| Ref. Series 1996-B (Sarah Bush Lincoln Hlth. Ctr. Proj.), 5.50%, 2/15/16 |
| 350,108 |
| 590,000 |
| Ref. Series 2003 (Sinai Health Proj.) (FHA Insured), 5.15%, 2/15/37 |
| 533,861 |
| 200,000 |
| IL Sales Tax Rev. Series 1994-U, 5.00%, 6/15/10 |
| 200,338 |
|
|
| Lombard Public Facs. Corp. Rev. First Tier: |
|
|
|
|
| Series 2005-A1 (Conference Ctr. & Hotel Proj.): |
|
|
| 115,000 |
| 6.375%, 1/1/15 |
| 109,112 |
| 750,000 |
| (ACA insured) 5.50%, 1/1/25 |
| 613,387 |
| 1,925,000 |
| Series 2005-B (Conference Ctr. & Hotel Proj.), 5.25%, 1/1/36 |
| 1,704,087 |
| 2,000,000 |
| Malta Tax Allocation Rev. Series 2006, 5.75%, 12/30/25 |
| 1,662,600 |
| 1,000,000 |
| Manhattan Spl. Service Area Spl. Tax No. 07-6 Series 2007 (Groebe Farrn-Stonegate Proj.), 5.75%, 3/1/22 |
| 928,610 |
| 247,000 |
| Montgomery Ref. Impt. Spl. Assmt. Series 2007 (Lakewood Creek Proj.) (Radian insured), 4.70%, 3/1/30 |
| 193,033 |
| 250,000 |
| Quincy Hosp. Rev. Ref. Series 2007, 5.00%, 11/15/17 |
| 240,123 |
|
|
| Southwestern IL Dev. Auth. Rev.: |
|
|
| 2,475,000 |
| Series 1999 (Anderson Hosp. Proj.), 5.625%, 8/15/29 |
| 2,148,053 |
| 750,000 |
| Ref. Series 2008-A (Loca1 Govt. Prog.), 7.00%, 10/1/22 |
| 674,138 |
| 500,000 |
| Series 2006 (Village of Sauget Proj.), 5.625%, 11/1/26 |
| 420,045 |
| 275,000 |
| Upper Illinois River Valley Dev. Auth. Rev. Series 2001 (Morris Hosp. Proj.), 6.05%, 12/1/11 |
| 288,932 |
| 440,000 |
| Will Co. Spl. Educ. Rev. Series 2006, 5.40%, 1/1/18 |
| 443,898 |
| 500,000 |
| Will Co. Student Hsg. Rev. Series 2002-A (Joliet Junior College Proj.), 6.375%, 9/1/13 (7) (8) |
| 292,200 |
|
|
|
|
| |
|
|
|
|
| 19,663,135 |
|
|
|
|
| |
| Indiana (4.4%) |
|
| ||
| 500,000 |
| Boone Co. Redev. Tax Increment Rev. Series 2005-B, 5.375%, 8/1/23 |
| 453,995 |
| 100,000 |
| Elkhart Co. Ind. Hosp. Auth. Rev. Series 1998 (Elkhart General Hosp. Proj.), 5.25%, 8/15/28 |
| 96,176 |
| 500,000 |
| Goshen Ind. Redev. Dist. Tax Allocation Rev. Series 2008, 5.875%, 1/1/28 |
| 454,680 |
| 250,000 |
| Hammond Ind. Redev. Dist. Rev. Series 2008 (Marina Area Proj.), 6.00%, 1/15/17 |
| 234,292 |
|
|
| IN Hlth. & Educ. Fac. Fin. Auth. Rev.: |
|
|
|
|
| Series 2005 (Baptist Homes of IN Proj.): |
|
|
| 400,000 |
| 5.25%, 11/15/25 |
| 356,348 |
| 250,000 |
| 5.25%, 11/15/35 |
| 209,552 |
| 1,000,000 |
| Series 2007 (Cmnty. Fndtn. Northwest Proj.), 5.50%, 3/1/22 |
| 906,310 |
| 215,000 |
| IN Hlth. Fac. Fin. Auth. Hlth. Fac. Rev. Series 1998 (Holy Cross Health Sys. Corp. Proj.) |
| 201,236 |
|
|
| IN Hlth. Fac. Fin. Auth. Hosp. Rev.: |
|
|
|
|
| Series 1993 (Community Hosp. of Anderson Proj.) (MBIA insured): |
|
|
| 105,000 |
| 6.00%, 1/1/14 |
| 106,256 |
| 650,000 |
| 6.00%, 1/1/23 |
| 648,082 |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| 600,000 |
| Ref. Series 1998 (Floyd Memorial Hosp. & Hlth. Svcs. Proj.), 5.25%, 2/15/18 |
| 585,996 |
|
|
| Series 2001- A (Community Foundation Northwest IN): |
|
|
| 1,360,000 |
| 5.50%, 8/1/13 |
| 1,370,023 |
| 360,000 |
| 6.375%, 8/1/21 |
| 357,318 |
| 50,000 |
| 6.375%, 8/1/31 |
| 47,238 |
| 300,000 |
| Series 2004-A (Community Foundation Northwest IN), 4.75%, 3/1/14 |
| 290,835 |
| 1,875,000 |
| IN Hlth. Fac. Fin. Auth. Rev. Ref. Series 1998 (Marquette Manor Proj.), 5.00%, 8/15/18 |
| 1,777,894 |
| 1,155,000 |
| IN State Dev. Fin. Auth. Rev. Educ. Facs. Series 2003 (Archdiocese Indpls. Proj.), 5.50%, 1/1/33 |
| 1,105,728 |
| 500,000 |
| St. Joseph Co. Hosp. Auth. Hlth. Fac. Rev. Series 2005 (Madison Ctr. Oblig. Group Proj.), 5.25%, 2/15/28 |
| 412,050 |
| 500,000 |
| Vigo Co. Hosp. Auth. Rev. Series 2007 (Union Hosp. Inc. Proj.), 5.50%, 9/1/27 |
| 408,875 |
|
|
|
|
| |
|
|
|
|
| 10,022,884 |
|
|
|
|
| |
| Iowa (1.1%) |
|
| ||
| 250,000 |
| Altoona Urban Renewal Tax Increment Rev. Series 2008, 6.00%, 6/1/28 |
| 229,975 |
|
|
| Coralville Urban Renewal Rev. Tax Increment Series 2006-A: |
|
|
| 240,000 |
| 5.00%, 6/1/11 |
| 239,983 |
| 115,000 |
| 5.00%, 6/1/12 |
| 114,119 |
| 120,000 |
| 5.00%, 6/1/14 |
| 117,216 |
| 185,000 |
| 5.00%, 6/1/15 |
| 178,181 |
| 405,000 |
| Dickinson Co. Hsg. Sr. Rev. Series 2006-A (Spirit Lake - GEAC LLC Proj.), 5.375%, 12/1/16 |
| 351,742 |
| 345,000 |
| Iowa Fin. Auth. Cmnty. Provider Rev. Series 2007 (Boys & Girls Proj.), 5.40%, 12/1/10 |
| 341,271 |
|
|
| IA Fin. Auth. Sr. Hsg. Rev. Ref. Series: |
|
|
| 410,000 |
| 2007-A (Wedum Walnut Ridge LLC Proj.), 5.00%, 12/1/14 |
| 375,404 |
| 95,000 |
| IA Fin. Auth Single Family Rev. Series 2000-D (GNMA/FNMA Mtg. Backed Sec. Proj.), 5.75%, 7/1/09 |
| 96,563 |
| 500,000 |
| IA Fin. Auth. Sr. Living Fac. Rev. Series 2007-A (Deerfield Ret. Cmnty. Inc. Proj.), 5.00%, 11/15/21 |
| 371,475 |
|
|
|
|
| |
|
|
|
|
| 2,415,929 |
|
|
|
|
| |
| Kansas (0.3%) |
|
| ||
| 500,000 |
| KS Dev. Fin. Auth. Hsg. Dev. Rev. Series 2003-B1 (GNMA Collateralized), 5.60%, 5/20/34 |
| 472,075 |
| 250,000 |
| KS Dev. Fin. Auth. Hlth. Facs. Rev. Series 2008-F (Stermont-Vail Healthcare), 5.75%, 11/15/27 |
| 239,637 |
|
|
|
|
| |
|
|
|
|
| 711,712 |
|
|
|
|
| |
| Kentucky (0.0%) |
|
| ||
| 185,000 |
| Dawson Springs Water & Sewer Rev. Ref. Series 1997, 5.10%, 9/1/13 |
| 186,247 |
|
|
|
|
| |
| Louisiana (5.1%) |
|
| ||
| 7,200,000 |
| Capital Appreciation Series 2000-D1 (GNMA & FNMA collateralized) zero coupon, |
| 1,257,696 |
| 393,105 |
| Denham Springs - Livingston Hsg. & Mtg. Rev Series 2007, 5.00%, 11/1/40 |
| 374,452 |
|
|
| East Baton Rouge Fin. Auth. Single Family Mtg. Rev. Ref.: |
|
|
| 490,000 |
| Series 2007-A, 4.40%, 10/1/23 |
| 433,493 |
| 115,000 |
| Series 2007-B1 (GNMA/FNMA/FHLMC supported), 4.625%, 10/1/24 |
| 103,645 |
| 599,000 |
| Houma- Terrebonne Pub. Tr. Fin. Auth. Single Family Mortgage-Backed Rev. |
|
|
|
|
| Series 2007 (GNMA/FNMA/FHLMC supported), 5.15%, 12/1/40 |
| 564,671 |
|
|
| Jefferson Parish Fin. Auth. Single Family Mtg. Rev. Series 2007-D: |
|
|
| 300,000 |
| 4.00%, 12/1/23 |
| 291,654 |
| 1,200,000 |
| 5.00%, 6/1/38 |
| 1,103,124 |
| 400,000 |
| Juban Park Cmnty. Dev. Dist. Special Assessment Series 2006, 5.15%, 10/1/14 |
| 369,208 |
| 1,224,000 |
| Layayette Pub. Fin. Auth. Single Family Mortgage Backed Rev. |
| 1,215,762 |
|
|
| LA Hsg. Fin. Agy. Single Family Mtg. Rev. Series 2007-B1: |
|
|
| 2,240,000 |
| 5.70%, 12/1/38 |
| 2,217,712 |
| 500,000 |
| (Home Ownership Pg.-Go Zone Proj.) (GNMA/FNMA/FHLMC supported), 5.60%, 6/1/39 |
| 488,500 |
|
|
See accompanying notes to portfolios of investments on page 52. | 29 |
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
| 600,000 |
| LA Loc. Gov. Envir. Facs. Cmnty. Dev. Auth. Rev. Series 2007 (LA Local Gov. Proj.), 6.75%, 11/1/32 |
| 525,012 |
|
|
| LA Public Facs. Auth. Rev: |
|
|
| 500,000 |
| Series 1995-A (Glen Retirement Sys. Proj.), 6.50%, 12/1/15 |
| 500,115 |
| 750,000 |
| Ref. Series 2007-A2 (Tulane Univ. Proj.), variable rate, 2/15/36 |
| 491,250 |
| 1,025,000 |
| St. John Baptist Parish Rev. Series 2007-A (Marathon Oil Corp.), 5.125%, 6/1/37 |
| 788,533 |
| 1,143,685 |
| St. Tarmnany Parish Fin. Auth. Single Family Mtg. Rev. Series 2007-A (Home Ownership |
| 1,078,232 |
|
|
|
|
| |
|
|
|
|
| 11,803,059 |
|
|
|
|
| |
| Maryland (0.6%) |
|
| ||
| 200,000 |
| Howard Co. Retirement Cmnty. Rev. Ref. Series 2007-A (Vantage House Fac. Proj.), 4.50%, 4/1/10 |
| 195,498 |
| 310,000 |
| MD Economic Dev. Corp. Rev. Ref. Sr. Lien Series 2006-A (Chesapeake Bay Proj.), 4.75%, 12/1/11 |
| 301,897 |
| 900,000 |
| MD Hlth. & Hgr. Educ. Fac. Auth. Rev. Series 2007-B (King Farm Presbyterian Cmnty. Proj.), 4.75%, 1/1/13 |
| 857,754 |
|
|
|
|
| |
|
|
|
|
| 1,355,149 |
|
|
|
|
| |
| Massachusetts (1.3%) |
|
| ||
| 250,000 |
| MA St. G.O. Series 2007-A (FGIC insured), variable rate, 5/1/37 |
| 151,250 |
|
|
| MA Hlth. & Educ. Fac. Auth. Rev.: |
|
|
| 70,000 |
| Series 1999-C (Nichols College Proj.), 6.00%, 10/1/17 |
| 69,235 |
| 250,000 |
| Series 2001-E (Berkshire Hlth. Sys. Proj.), 5.70%, 101/25 |
| 235,527 |
| 1,000,000 |
| Series 2008-A (Quincy Med. Ctr. Proj.), 5.125%, 1/15/12 |
| 969,200 |
| 550,000 |
| MA Dev. Fin. Agy. Rev. Series 2007 (Orchard Cove Proj.), 5.00%, 10/1/17 |
| 477,438 |
| 1,000,000 |
| MA Indus. Fin. Agy. Rev. Series 1997 (Trustees Deerfield Academy Proj.), 5.00%, 10/1/23 |
| 990,630 |
|
|
|
|
| |
|
|
|
|
| 2,893,280 |
|
|
|
|
| |
| Michigan (1.8%) |
|
| ||
| 1,000,000 |
| Kent Hosp. Fin. Auth. Rev. Series 2005-A (Met Hosp. Proj.), 6.00%, 7/1/35 |
| 858,320 |
| 115,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2006 (Black River School Proj.), |
| 114,227 |
| 500,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Series 2007 (Richfield Pub. Sch. Proj.), 5.00%, 9/1/22 |
| 424,205 |
| 650,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Bradford Proj.), 6.00%, 9/1/16 |
| 641,121 |
| 500,000 |
| MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Nataki Talibah Proj.), 6.25%, 10/1/23 |
| 450,505 |
| 500,000 |
| MI Hosp. Fin. Auth. Rev. Ref. Series 1998-A (Mclaren Hlth. Care Proj.) (MBIA-IBC insured), 5.00%, 6/1/28 |
| 466,160 |
| 500,000 |
| MI St. Univ. Gen. Rev. Series 2007-B (Ambac insured), variable rate, 2/15/37 |
| 312,500 |
| 250,000 |
| MI Tobacco Settlement Fin. Auth. Sr. Rev. Series 2007-A, 5.125%, 6/1/22 |
| 211,107 |
| 300,000 |
| Pontiac Tax Increment Fin. Auth. Rev. Ref. Series 2002 (Dev. Area 2 Proj.) (ACA insured), 5.625%, 6/1/22 |
| 224,703 |
| 500,000 |
| Saginaw Hosp Fin. Auth. Series 2000-F (Covenant Med. Ctr. Proj.), 6.50%, 7/1/30 |
| 507,645 |
|
|
|
|
| |
|
|
|
|
| 4,210,493 |
|
|
|
|
| |
| Minnesota (2.1%) |
|
| ||
| 5,424,004 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 5.295%, 11/1/32 |
| 4,370,445 |
| 600,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Series 2006 (Nursing Home NTS-Episcopal Proj.), 5.63%, 10/1/33 |
| 481,884 |
|
|
|
|
| |
|
|
|
|
| 4,852,329 |
|
|
|
|
| |
| Mississippi (1.1%) |
|
| ||
|
|
| MS Dev. Bank Spl. Oblig. Rev. Ref.: |
|
|
| 325,000 |
| Series 1998 (Three Rivers Solid Waste Proj.), 5.125%, 7/1/14 |
| 325,058 |
| 950,000 |
| Series 2006-B (Magnolia Regl. Hlth. Ctr. Proj.), 5.00%, 10/1/13 |
| 977,854 |
|
|
| MS Home Corp. Single Fam. Mtg. Rev. (GNMA/FNMA/FHLMC supported): |
|
|
| 245,000 |
| Series 2007-C1, 5.60%, 6/1/38 |
| 249,643 |
| 500,000 |
| Series 2008-A1, 5.05%, 12/1/39 |
| 447,500 |
| 500,000 |
| Series 2008-B2, 6.75%, 6/1/39 |
| 524,470 |
|
|
|
|
| |
|
|
|
|
| 2,524,525 |
|
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| 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 |
| 199,922 |
| 80,000 |
| Cape Girardeau Co. Indl. Dev. Auth. Hlth. Care Fac. Rev. (Southwest MO Hosp. Assoc. Proj.) |
| 69,922 |
| 500,000 |
| Chillicothe Tax Increment Rev Series 2006 (South U.S. 65 Proj.), 5.625%, 4/1/27 |
| 416,160 |
| 295,000 |
| Hannibal Indl. Dev. Auth. Tax Increment & Transn. Dev. Rev. Ref. & Impt. Series 2006 |
| 256,576 |
| 250,000 |
| Harrisonville Annual Approp. Tax. Rev. Ref. Series 2007 (Harrisonville Towne Ctr. Proj.), 4.625%, 11/1/28 |
| 205,232 |
| 250,000 |
| Independence 39th St. Transn. Dist. Rev. Ref. & Impt. Series 2008 (Road Impt. Proj.), 6.875%, 9/1/32 |
| 229,290 |
| 1,000,000 |
| Joplin Indl. Dev. Auth. Rev. Ref. Series 2007-F (Christian Homes Inc. Proj.), 5.50%, 5/15/17 |
| 890,900 |
|
|
| Series 2007-E (Independence - Centerpoint Proj.): |
|
|
| 250,000 |
| 5.125%, 4/1/25 |
| 227,527 |
| 500,000 |
| 4.75%, 4/1/28 |
| 429,745 |
| 750,000 |
| Lakeside 370 Levee Dist. Impt. Spl. Tax Series 2008, 7.00%, 4/1/28 |
| 702,450 |
| 250,000 |
| MO Dev. Fin. Brd. Infrastructure Facs. Rev. Series 2008-F (Independence Centerpoint Proj.), 6.00%, 4/1/27 |
| 241,607 |
|
|
| MO Hlth. & Educ. Fac. Auth. Rev. Series: |
|
|
| 500,000 |
| 2005-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 5.375%, 2/1/35 |
| 419,580 |
| 500,000 |
| 2007-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 4.875%, 2/1/18 |
| 463,505 |
| 400,000 |
| MO Hlth. & Educ. Fac. Auth. Educ. Fac. Rev. Series 2007-B (Riverside Horizons Proj.) |
| 331,488 |
| 250,000 |
| St. Louis Indl. Dev. Auth. Sr. Living Facs. Rev. Series 2007-A (Friendship Vlg.), 5.375%, 9/1/21 |
| 221,448 |
| 460,000 |
| St. Louis Indl. Dev. Auth. Tax Allocation Rev. Series 2006 (Southtown Redev. Proj.), 5.125%, 5/1/26 |
| 399,694 |
| 260,000 |
| Univ. City Indl. Dev. Auth. Hsg. Rev. Ref. Series 1995-A (Canterbury Proj., 5.75%, 12/20/15 |
| 260,265 |
|
|
|
|
| |
|
|
|
|
| 5,965,311 |
|
|
|
|
| |
| Montana (0.2%) |
|
| ||
| 905,961 |
| MT Fac. Fin. Auth. Rev. Series 2005 (Great Falls Pre-Release Svcs. Proj.), 5.08%, 4/1/21 |
| 851,286 |
|
|
|
|
| |
| Nebraska (0.2%) |
|
| ||
| 220,000 |
| Douglas Co. San. & Impt. Dists. No. 375 G.O. Series 2003 (Walnut Ridge Proj.), 5.30%, 12/15/23 |
| 221,124 |
| 500,000 |
| Mead Vlg. Tax Allocation Rev. Series 2006-A (E3 Biofuels - Mead LLC Proj.), 5.125%, 7/1/12 |
| 349,330 |
|
|
|
|
| |
|
|
|
|
| 570,454 |
|
|
|
|
| |
| Nevada (1.8%) |
|
| ||
| 250,000 |
| Clark Co. Econ. Dev. Rev. Series 2003 (Alexander Dawson Sch. Proj.), 5.375%, 5/15/33 |
| 229,112 |
| 1,000,000 |
| Clark Co. Poll. Ctrl. Rev. Ref. Series 1995-D (Nev. Pwr. Co. Proj.) (ACA-CBI Insured), 5.30%, 10/1/11 |
| 970,640 |
| 415,000 |
| Clark Co. Impt. Spl. Assmt. Series 2007-A (Summerlin Proj.), 4.85%, 2/1/17 |
| 369,557 |
| 600,000 |
| Las Vegas Paiute Tribe Rev. Series 2002A (ACA insured), 6.625%, 11/1/17 |
| 604,272 |
| 305,000 |
| North Las Vegas LOC Impt. Spl. Assessment Ref. Sub. Spl. Series 2006-B (Impt. Dist. No. 60), 4.50%, 12/1/10 |
| 298,638 |
| 100,000 |
| NV Hsg. Dev. SF Mtg. Program Mezzanine Series 1998B-1, 5.30%, 4/1/16 |
| 100,999 |
|
|
| Reno Hosp. Rev. Series 2007-A (Renown Regl. Med. Ctr. Proj.): |
|
|
| 500,000 |
| 5.00%, 6/1/22 |
| 451,170 |
| 500,000 |
| 5.25%, 6/1/32 |
| 428,710 |
| 500,000 |
| Sparks Redev. Agy. Tax Increment Rev. Series 2008 (Redev. Area No. 2 Proj.), 6.40%, 6/1/20 |
| 467,520 |
| 250,000 |
| Sparks Tourism Impt. Dist. No.1 Sr. Sales Tax Series 2008-A, 6.50%, 6/15/20 |
| 234,588 |
|
|
|
|
| |
|
|
|
|
| 4,155,206 |
|
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 31
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| New Hampshire (0.9%) |
|
| ||
|
|
| Manchester Hsg. & Redev. Auth. Rev.: |
|
|
| 200,000 |
| Series 2000-B (Radian insured) zero coupon, 5.25% effective yield, 1/1/19 |
| 105,152 |
| 890,000 |
| Series 2000-A (ACA insured), 6.75%, 1/1/15 |
| 897,431 |
| 565,000 |
| NH Hlth. & Educ. Fac. Auth. Rev. Series 2006-A (Havenwood-Heritage Heights Proj.), 5.00%, 1/1/16 |
| 489,872 |
| 500,000 |
| NH Hlth. & Educ. Facs. Auth. Hosp. Rev. Series 2004 (Speare Mem. Hosp. Proj.), 5.00%, 7/1/16 |
| 477,965 |
| 135,000 |
| NH Higher Educ. & Hlth. Fac. Auth. Rev. Series 1998 (New Hampton School), 5.00%, 10/1/08 |
| 135,003 |
|
|
|
|
| |
|
|
|
|
| 2,105,423 |
|
|
|
|
| |
| New Jersey (0.7%) |
|
| ||
|
|
| NJ Hlth. Care Facs. Fin. Auth. Rev.: |
|
|
| 300,000 |
| Series 1997 (Capital Health Sys. Proj.), 5.125%, 7/1/12 |
| 303,315 |
| 1,000,000 |
| Ref. Series 1997 (Holy Name Hosp. Issue), 5.25%, 7/1/20 |
| 978,900 |
| 495,000 |
| Series 2007-E (Catholic Hlth. East Issue Proj.), variable rate, 11/15/33 |
| 346,500 |
|
|
|
|
| |
|
|
|
|
| 1,628,715 |
|
|
|
|
| |
| New Mexico (0.8%) |
|
| ||
|
|
| Farmington Pollution Ctl. Rev. Ref. (Pub. Svc. Co. San Juan Proj.): |
|
|
| 250,000 |
| Series 1996-B, 6.30%, 12/1/16 |
| 237,435 |
| 1,000,000 |
| Series 1996-C, 5.70%, 12/1/16 |
| 1,003,470 |
| 475,000 |
| NM MFA Forward Mortgage-Backed Series 1995-E (GNMA collateralized), 6.95%, 1/1/26 |
| 482,115 |
| 250,000 |
| NM State Hosp. Equip. Ln. Council Hosp. Rev. Ref. Series 2007-A (Rehoboth Proj.), 5.00%, 8/15/17 |
| 212,167 |
|
|
|
|
| |
|
|
|
|
| 1,935,187 |
|
|
|
|
| |
| New York (2.0%) |
|
| ||
250,000 |
| Albany Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A (Brighter Choice Charter Sch. Proj.), 5.00%, 4/1/20 |
| 226,350 | |
| 500,000 |
| Amherst Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (Beechwood Hlth. Care Ctr. Inc. Proj.), 4.875%, 1/1/13 |
| 467,855 |
| 500,000 |
| Genesee Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (United Mem. Med. Ctr. Proj.), 4.75%, 12/1/14 |
| 460,605 |
| 275,000 |
| Madison Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (Oneida Hlth. Sys., Inc. Proj.), 4.50%, 2/1/17 |
| 251,749 |
| 1,230,000 |
| NY Dorm Auth. Rev. Series 1996-A (Maimonides Med. Ctr. Proj.), 5.75%, 8/1/24 |
| 1,231,414 |
| 650,000 |
| NY Dorm Auth. Debt Rev. Series 2007-B (N Shore Proj.), variable rate, 5/1/33 |
| 461,500 |
| 155,000 |
| NY Cos. Tobacco Trust IV Settlement Pass-Thru Rev. Series 2005-A, 4.25%, 6/1/21 |
| 139,884 |
| 130,001 |
| NY Tobacco Settlement Fing. Corp Asset-Backed Rev. Series 2003-CI, 5.00%, 6/1/11 |
| 130,088 |
| 250,000 |
| Seneca Nation Indians Cap. Impt. Auth. Spl. Oblig. Rev. Series 2007-A, 5.00%, 12/1/23 |
| 206,353 |
|
|
| Ulster Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A: |
|
|
| 500,000 |
| 5.10%, 9/15/13 |
| 471,200 |
| 650,000 |
| 5.25%, 9/15/16 |
| 588,094 |
|
|
|
|
| |
|
|
|
|
| 4,635,092 |
|
|
|
|
| |
| North Carolina (1.2%) |
|
| ||
| 750,000 |
| Buncome Co. Proj. Dev. Fin. Rev. Series 2008 (Woodfin Downtown Corridor Dev. Proj.), 6.75%, 8/1/24 |
| 687,570 |
| 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 |
| 187,623 |
|
|
| NC Med. Care. Commission Hlth. Care Facs. Rev.: |
|
|
| 150,000 |
| Series 1998-B (Novant Hlth. Proj.), 5.00%, 10/1/28 |
| 151,506 |
| 525,000 |
| Ref. Series 2005-B (Presbyterian Proj.), 4.90%, 7/1/31 |
| 520,495 |
| 600,000 |
| NC Med. Care Commission Hlth. Care Hsg. Rev. Series 2004-A (ARC Proj.), 5.80%, 10/1/34 |
| 525,954 |
| 370,000 |
| NC Med. Care Commission Rev. Series 2003 (FHA Insd. Mtg.-Betsy Johnson Proj.) |
| 367,843 |
| 175,000 |
| Northern Hosp. Dist. Surry. Co. Hlth. Care Facs. Rev. Series 1999, 5.50%, 10/1/19 |
| 170,013 |
|
|
|
|
| |
|
|
|
|
| 2,716,206 |
|
|
|
|
|
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| North Dakota (0.8%) |
|
| ||
| 745,922 |
| City of Washburn Series 2007-B (Bismarck State College Fdtn.), 5.01%, 4/1/32 |
| 679,632 |
| 1,000,000 |
| Grand Forks Hlth. Care Sys. Rev. Series 1997 (Altru Hlth. Sys. Oblig. Group Proj.), 5.625%, 8/15/27 |
| 928,080 |
| 175,000 |
| Williams Co. Sales Tax Rev. Series 2006, 5.00%, 11/1/31 |
| 141,334 |
|
|
|
|
| |
|
|
|
|
| 1,749,046 |
|
|
|
|
| |
| Northern Mariana Islands (0.2%) |
|
| ||
| 450,000 |
| Northern Mariana Islands Commonwealth G.O. Ref. Series 2007-B, 5.00%, 10/1/22 |
| 375,791 |
|
|
|
|
| |
| Ohio (2.5%) |
|
|
|
|
| 330,000 |
| Blue Ash Tax Allocation Rev. Series 2006 (Duke Realty Ohio Proj.), 5.00%, 12/1/21 |
| 285,849 |
| 485,000 |
| Buckeye Tobacco Settlement Fin. Auth. Asset-Backed Sr. Rev. Series 2007-A2, 5.125%, 6/1/24 |
| 403,287 |
| 295,000 |
| Cleveland-Cuyahoga Port. Auth. Dev. Rev. Series 1999-A (Port of Cleveland Bond Fund Capital |
| 271,282 |
|
|
| Cleveland-Cuyahoga Co. Port. Auth. Dev. Rev.: |
|
|
| 675,000 |
| Series 2004-D (Garfield Heights Proj.), 5.25%, 5/15/23 |
| 593,176 |
| 265,000 |
| Series 2005-B (Fairmount Proj.), 5.125%, 5/15/25 |
| 217,854 |
| 750,000 |
| Series 2006-A(Sr. Hsg. - St. Clarence - Geac Proj.), 6.00%, 5/1/21 |
| 616,275 |
| 750,000 |
| Cuyahoga Co. Hsg. Mtg. Sr. Rev. Series 2007 (R H Myers Apts. Proj.), 5.70%, 3/20/42 |
| 735,705 |
| 250,000 |
| Erie Co. Hosp. Facs. Rev. Series 2002-A (Firelands Regl. Med. Ctr. Proj.), 5.625%, 8/15/32 |
| 231,605 |
| 1,500,000 |
| Hamilton Co. Hlth. Care Rev. Ref. Series 2006-A (Life Enriching Cmntys. Proj.), 5.00%, 1/1/27 |
| 1,236,300 |
| 805,000 |
| Lorain Co. Hosp. Rev. Series 1997-B (Catholic Hlth.Care Partners Proj.) (MBIA insured), 5.50%, 9/1/27 |
| 804,018 |
| 250,000 |
| OH Hsg. Fin. Agy. Residential Mtg. Rev. Series 2008-F, 5.45%, 9/1/33 |
| 239,483 |
| 250,000 |
| Toldeo-Lucas Co. Port Auth. Spl. Assessment Rev. Series 2003 (Crocker Park), 5.38%, 12/1/35 |
| 210,695 |
|
|
|
|
| |
|
|
|
|
| 5,845,529 |
|
|
|
|
| |
| Oklahoma (1.6%) |
|
| ||
| 500,000 |
| Atoka Co. Health Care Auth. Hosp. Rev. Series 2007 (Atoka Mem. Hosp. Proj.), 5.875%, 10/1/18 |
| 443,920 |
| 500,000 |
| Citizen Potawatomi Nation Tax Rev. Series 2004-A, 6.50%, 9/1/16 |
| 503,220 |
| 250,000 |
| Langston Econ. Dev. Auth. Rev. Series 2005-A (Langston Univ. Proj.) (ACA insured), 5.00%, 5/1/35 |
| 188,090 |
| 915,000 |
| Oklahoma St. Ind. Auth Rev. Series 2006 (YMCA Greater OK Earlywine Proj.), 4.875%, 7/1/22 |
| 755,214 |
| 350,000 |
| Valley View Hosp. Auth. Rev. Ref. Series 1996, 6.00%, 8/15/14 |
| 362,579 |
| 960,000 |
| Washington Co. Med. Auth. Rev. Bartlesville Ref. Series 1996 (Jane Phillips Med. Ctr. Proj.) |
| 961,958 |
| 500,000 |
| Weatherford Hosp. Auth. Rev. Series 2006, 6.00%, 5/1/16 |
| 463,980 |
|
|
|
|
| |
|
|
|
|
| 3,678,961 |
|
|
|
|
| |
| Oregon (0.7%) |
|
| ||
| 200,000 |
| Cow Creek Band Umpqua Tribe of Indians Rev. Series 2006-C, 4.875%, 10/1/08 |
| 199,990 |
| 250,000 |
| OR G.O. Series 2001-81 (Veterans Welfare Proj.), 5.25%, 10/1/42 |
| 224,693 |
| 50,000 |
| OR Hsg. & Cmty. Svcs. Dept. Mtg. Rev. Series 2000-K, 5.70%, 7/1/22 |
| 50,472 |
| 1,245,000 |
| Western Generation Agy. Sub. Lien Rev. Series 2006-C (Wauna Cogeneration Proj.), 5.00%, 1/1/21 |
| 1,021,697 |
|
|
|
|
| |
|
|
|
|
| 1,496,852 |
|
|
|
|
| |
| Pennsylvania (3.4%) |
|
| ||
| 495,000 |
| Butler Co. Gen. Auth. Rev. Series 2007 (Butler Area Sch. Dist. Proj.), variable rate, 10/1/34 |
| 314,325 |
| 225,000 |
| Cambridge Area Jt. Auth. Gtd. Swr. Rev. Series 2008, 5.625%, 12/1/28 |
| 197,149 |
| 565,000 |
| Chartiers Valley Indl. & Commercial Dev. Auth. Rev. Ref. Series 2003-A |
| 568,153 |
| 555,000 |
| Erie Auth. Pkg. Fac. Rev. Series 2006, 4.60%, 9/1/21 |
| 464,080 |
| 300,000 |
| Harrisburg Auth. Univ. Rev. Series 2007-A (Harrisburg Univ of Science Proj.), 5.40%, 9/1/16 |
| 288,585 |
| 600,000 |
| Geisinger Auth. Hlth. Sys. Rev. Series 2007 (Geisinger Hlth. Sys. Proj.), variable rate, 5/1/37 |
| 396,000 |
| 1,890,000 |
| Grove City Area Hosp. Auth. Rev. Series 1998 (United Cmnty. Hosp. Proj.), 5.25%, 7/1/12 |
| 1,884,746 |
See accompanying notes to portfolios of investments on page 52. 33
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 500,000 |
| Lancaster Co. Hosp. Auth. Rev. Series 2008-A (Brethren Village Proj.), 5.20%, 7/1/12 |
| 496,950 |
| 250,000 |
| Lehigh Co. General Purpose Auth. Rev. Rev. Series 2007 (Saint Luke’s Bethlehem Proj.), variable rate, 8/15/42 |
| 147,500 |
| 500,000 |
| Montgomery Co. Indus. Dev. Auth. Rev. Ref. Series 1997-A (Meadowood Proj.), 6.25%, 12/1/17 |
| 469,090 |
| 500,000 |
| Northeastern PA Hosp. & Educ. Auth. College Rev. Series 1997 (Luzerne Co. Cmnty. Call. Proj.) |
| 500,670 |
|
|
| PA Higher Educ. Fac. Auth Rev.: |
|
|
| 800,000 |
| Series 2000 (Univ. of the Arts Proj.) (Radian insured), 5.75%, 3/15/30 |
| 730,712 |
| 370,000 |
| Series 2006-FF2 (Assn. Indpt. Colleges & Univ. Proj.) (Radian insured), 5.00%, 12/15/24 |
| 321,586 |
| 240,000 |
| Philadelphia Hosp. & Hgr. Educ. Fac. Auth. Hosp. Rev. Series 1997-A (FHA insured), 5.30%, 1/1/18 |
| 238,939 |
| 565,000 |
| Potter Co. Hosp. Auth. Rev. Series 1996 (Charles Cole Mem. Hosp. Proj.) (Radian insured), 5.95%, 8/1/16 |
| 565,057 |
| 25,000 |
| South Fork Municipal Auth. Hosp. Rev. Series 1998-B (Conemaugh Valley Mem. Hosp. Proj.), 5.375%, 7/1/22 |
| 24,723 |
| 200,000 |
| Washington Co. Auth. Rev. Series 1999, 6.15%, 12/1/29 |
| 190,008 |
|
|
|
|
| |
|
|
|
|
| 7,798,273 |
|
|
|
|
| |
| Puerto Rico (0.4%) |
|
| ||
| 500,000 |
| Puerto RicoElec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 |
| 337,500 |
| 500,000 |
| Puerto Rico Commonwealth Hwy. & Transportation Auth. Rev. Ref. Series 2007-N, variable rate, 7/1/45 |
| 285,000 |
| 500,000 |
| Puerto Rico Sales Tax. Fin. Corp. Rev. Series 2007-A, variable rate, 8/1/57 |
| 330,000 |
|
|
|
|
| |
|
|
|
|
| 952,500 |
|
|
|
|
| |
| Rhode Island (0.5%) |
|
| ||
| 260,000 |
| RI Clean Water Protection Fin. Agy. Pooled Lien Rev. Series 1995A (MBIA insured), 5.375%, 10/1/15 |
| 260,382 |
| 565,000 |
| RI Hlth. & Educ. Bldg. Corp. Rev. Series 1997 (Steere House Proj.), 5.80%, 7/1/20 |
| 497,596 |
| 500,000 |
| RI Hsg. & Mtg. Fin. Corp. Rev. Series 2008-A2 (Home Ownership Oppty. Proj.), 5.625%, 10/1/38 |
| 490,065 |
|
|
|
|
| |
|
|
|
|
| 1,248,043 |
|
|
|
|
| |
| South Carolina (1.8%) |
|
| ||
|
|
| Berkeley Co. Sch. Dist. Intallment Lease (Securing Assets For Education Proj.): |
|
|
| 500,000 |
| Series 2003, 5.25%, 12/1/19 |
| 484,445 |
| 750,000 |
| Series 2003, 5.25%, 12/1/20 |
| 717,502 |
| 150,000 |
| Charleston Educ. Excellence Fin. Corp. Rev. Series 2005 (Charleston Co. Schl. Dist. Proj.), 5.25%, 12/1/20 |
| 148,290 |
| 500,000 |
| Lee Co. Sch. Facs. Inc. Installment Purchase Rev. Series 2007 (Radian insured), 6.00%, 12/1/31 |
| 467,390 |
|
|
| SC Jobs Econ. Dev. Auth. Hosp. Fac. Rev. Ref. & Impt. Series 2006 (Hampton Regl. Med. Proj.): |
|
|
| 390,000 |
| 4.60%, 11/1/09 |
| 383,109 |
| 500,000 |
| 4.65%, 11/1/11 |
| 473,800 |
| 885,000 |
| SC Jobs Econ. Dev. Auth. Hlth. Care Fac. Rev. Ref. Series 2007 (Lutheran Homes Proj.), 4.875%, 5/1/10 |
| 868,796 |
|
|
| SC Jobs Econ. Dev. Auth. Hlth. Care Fac. Rev. (Woodlands at Furman Proj.): |
|
|
| 500,000 |
| Series 2007-A, 6.00%, 11/15/27 |
| 422,620 |
| 250,000 |
| Series 2007-B, 5.15%, 11/15/42 |
| 238,460 |
|
|
|
|
| |
|
|
|
|
| 4,204,412 |
|
|
|
|
| |
| Tennessee (1.5%) |
|
| ||
| 500,000 |
| Blount Co. Hlth. & Educ. Fac. Brd. Rev. Ref. Series 2007-A (Asbury Inc. Proj.), 4.75%, 4/1/12 |
| 474,250 |
| 500,000 |
| Metro Govt. Nashville & Davidson Co. Hlth. & Educ. Facs. Brd. Multifamily Hsg. Rev. |
| 429,290 |
| 240,000 |
| Metro Govt. Nashville & Davidson Co. Indus. Dev. Brd. Rev. Ref. |
| 246,905 |
|
|
| Shelby Co. H1th., 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) |
| 363,710 |
| 7,875,000 |
| Senior Series 1998-A, 5.55%, 1/1/29 (7) (8) |
| 1,546,886 |
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 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) |
| 370,720 |
| 405,000 |
| Subordinate Series 1995-C, 7.50%, 9/1/25 (7) (8) |
| 4 |
|
|
|
|
| |
|
|
|
|
| 3,431,781 |
|
|
|
|
| |
| |||||
| Texas (9.6%) |
|
| ||
|
|
| Austin Convention Enterprises, Inc. (Convention Ctr.) Rev. Ref.: |
|
|
| 400,000 |
| Series 2006-B, 6.00%, 1/1/10 |
| 405,004 |
| 450,000 |
| First Tier Series 2006, 5.25%, 1/1/24 |
| 390,141 |
| 20,000 |
| Austin Utilities System Rev. Ref. Series 1993 (MBIA insured), 5.25%, 5/15/18 |
| 20,020 |
|
|
| Bexar Co. HFC Multifamily Hsg. Rev.: |
|
|
| 250,000 |
| Series 2000-A (Dymaxion & Marbach Pk. Apts. Proj.), 6.10%, 8/1/30 |
| 225,240 |
| 550,000 |
| Subordinated Series 2000-C (Honey Creek Apts. Proj.), 8.00%, 4/1/30 |
| 443,734 |
| 230,000 |
| Ref. Series 2001-A (Nob Hill Apartments Proj.), 5.50%, 6/1/11 |
| 215,871 |
| 130,000 |
| Subordinated Series 2001-B (American Oppty. Hsg. Dublin Kingswood & Waterford Apts. Proj.), 7.50%, 12/1/14 |
| 126,370 |
| 1,000,000 |
| Series 2001-A-1 (Stablewood Farms Proj.) (GNMA Insured), 6.25%, 7/20/43 |
| 1,023,270 |
| 440,000 |
| Series 2001-A-1 (American Opportunity -Waterford Proj.), 6.50%, 12/1/21 |
| 430,822 |
| 370,000 |
| Bexar Co. Rev. Series 2000 (Venue Proj.)(MBIA insured), 5.75%, 8/15/22 |
| 384,815 |
|
|
| Brazos Co. Hlth. Fac. Dev. Corp. Franciscan Svcs. Corp. Rev.: |
|
|
| 500,000 |
| Series 2002, 5.38%, 1/1/32 |
| 433,500 |
| 500,000 |
| Series 2008 (St. Joseph Regl. Proj.), 5.50%, 1/1/33 |
| 439,325 |
| 500,000 |
| Brazos River Hbr. Nav. Dist Rev. Series 2002-B-2 (Dow Chemical Co. Proj.), 4.75%, 5/15/33 |
| 391,480 |
| 750,000 |
| Cameron Educ. Corp. Rev. Series 2006-A (Faith Family Academy Proj.) (ACA Insured), 5.00%, 8/15/21 |
| 630,780 |
| 5,009,000 |
| Dallas HFC Multifamily Mtg. Rev. Series 1998-A (GNMA collateralized) (Towne Ctr. Apts.), 6.75%, 10/20/32 |
| 5,178,705 |
| 150,000 |
| Fort Bend Co. Municipal Util. Dist. No. 106 G.O. Series 1999 (Radian insured), 5.30%, 9/1/10 |
| 150,156 |
| 500,000 |
| Galveston Co. Hlth. Fac. Dev. Corp. Rev. Series 1995 (Devereux Foundation Proj.) |
|
|
|
|
| (MBIA insured), 5.00%, 11/1/14 |
| 500,590 |
| 1,165,820 |
| Galveston Co. Municipal Util. Dist. No. 52 Series 2008-A, 6.25%, 8/12/09 |
| 1,160,504 |
| 100,000 |
| Harris Co. Spl. Rev. Sr. Lien Series 1998-A (Houston Sports Auth. Proj.), 5.00%, 11/15/28 |
| 85,994 |
| 500,000 |
| Harris Co. Hlth. Fac. Dev. Corp. Hosp. Rev. Series 2008 (Teco Proj.) (Assured Gty.), 5.00%, 11/15/32 |
| 456,830 |
| 100,000 |
| Houston Airport Sys. Rev. Sub. Lien Rev. Series 1998-C, 5.00%, 7/1/28 |
| 90,330 |
| 750,000 |
| Houston Cmnty. College G.O. Ref. Series 2005, 5.00%, 2/15/12 |
| 750,952 |
| 500,000 |
| La Vernia Higher Educ. Fin. Corp. Rev. Series 2008 (Friends Life Proj.), 6.00%, 2/15/18 |
| 473,550 |
| 18,981 |
| Midland HFC Single Family Mtg. Rev. Ref. Series 1992 A-2, 8.45%, 12/1/11 |
| 19,389 |
| 750,000 |
| Mesquite H1th. Fac. Dev. Corp. Retirement Fac. Rev. (Christian Care Ctr. Proj.) Series 2005, 5.00%, 2/15/15 |
| 720,472 |
| 250,000 |
| North TX Twy. Auth. Toll Rev. Ref. Series 2008-F, 6.125%, 1/1/31 |
| 239,870 |
| 750,000 |
| Port Corpus Christi Auth. Gen. Rev. Ref. Series 1989 (Union Pacific-Conv.), 5.65%, 12/1/22 |
| 698,625 |
|
|
| Richardson Hosp. Auth. Rev. Ref. Series 1998 (Baylor/Richardson Proj.): |
|
|
| 610,000 |
| 5.50%, 12/1/18 |
| 575,974 |
| 1,175,000 |
| 5.625%, 12/1/28 |
| 1,018,760 |
|
|
| 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 |
| 298,293 |
| 300,000 |
| 5.00%, 2/15/13 |
| 282,318 |
| 250,000 |
| (Buckingham Sr. Living Cmnty. Inc. Proj.), 5.25%, 11/15/16 |
| 223,358 |
| 490,000 |
| Tarrant Co. HFC Multifamily Hsg. Rev. Subordinate Seroes 2001-C |
|
|
|
|
| (Crossroads Apt. Proj.), 7.25%, 12/1/36 (7) (8) |
| 4,900 |
|
|
| TX Municipal Gas Acq. & Supply Corp. I Gas Supply Sr. Lien Rev.: |
|
|
| 500,000 |
| Series 2006-C, variable rate, 12/15/26 |
| 322,500 |
| 185,000 |
| Series 2008-D, 6.25%, 12/15/26 |
| 160,071 |
See accompanying notes to portfolios of investments on page 52. 35
|
|
|
|
|
| Sit Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 300,000 |
| TX Municipal Gas Acq. & Supply Corp. II Gas Supply Rev. Series 2007, variable rate, 9/15/27 |
| 210,000 |
| 235,000 |
| TX Public Property Fin. Corp. Mental Hlth. & Mental Retardation Rev. Series 1996, 6.20%, 9/1/16 |
| 235,447 |
| 500,000 |
| TX St. Pub. Fin. Auth. Charter Sch. Fin. Corp. Rev. Series 2007-A (Idea Pub. Sch. Proj.) |
|
|
|
|
| (ACA insured), 5.00%, 8/15/30 |
| 384,675 |
|
|
| 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 |
| 777,180 |
| 750,000 |
| Series 2006-A (Ed-Burnham Wood Proj.), 5.50%, 9/1/18 |
| 689,573 |
| 835,000 |
| Travis Co. Hlth. Facs. Dev. Corp. Retirement Fac. Rev. Series 2005 |
|
|
|
|
| (Querencia Barton Creek Proj.), 4.90%, 11/15/13 |
| 772,484 |
|
|
|
|
| |
|
|
|
|
| 22,041,872 |
|
|
|
|
| |
| |||||
| Utah (0.5%) |
|
| ||
| 250,000 |
| Provo Charter Sch. Rev. Series 2007 (Freedom Academy Fdtn. Proj.), 5.50%, 6/15/37 |
| 190,645 |
| 857,000 |
| UT Assoc. Muni. Pwr. Sys. Rev Series 2007-A, 5.00%, 5/1/27 |
| 695,558 |
| 240,000 |
| UT Hsg. Finance Agy. Multifamily Rev. Ref. Series 1996-A(Section 8) |
|
|
|
|
| (FHA insured), 6.10%, 7/1/22 |
| 240,341 |
|
|
|
|
| |
|
|
|
|
| 1,126,544 |
|
|
|
|
| |
| |||||
| Virginia (1.3%) |
|
| ||
| 415,000 |
| Alexandria Indl. Dev. Auth. Rev. Pollution Control Ref. Series 1994 (Potomac Electric Proj.) |
|
|
|
|
| (MBIA insured), 5.375%, 2/15/24 |
| 412,614 |
| 1,000,000 |
| Farms New Kent Cmnty. Dev. Auth. Spl. Assmt. Series 2006-A, 5.125%, 3/1/36 |
| 683,200 |
|
|
| Virginia St. Hsg. Dev. Auth. Comwlth. Mtg. Rev. Series 2001-H1: |
|
|
| 500,000 |
| 5.35%, 7/1/31 |
| 482,740 |
| 1,500,000 |
| (MBIA insured), 5.375%, 7/1/36 |
| 1,442,400 |
|
|
|
|
| |
|
|
|
|
| 3,020,954 |
|
|
|
|
| |
| |||||
| Washington (1.7%) |
|
| ||
| 2,000,000 |
| Kalispel Tribe Indians Priority Dist. Rev. Series 2008, 6.20%, 1/1/16 |
| 1,953,100 |
| 450,000 |
| Klickitat Co. Pub. Hosp. Dist. No. 2 Rev. Series 2007 (Skyline Hosp. Proj.), 6.00%, 12/1/20 |
| 406,318 |
| 250,000 |
| Okanogan Co. Pub. Hosp. Dist. No. 4 G.O. Series 2007 (Radian insured), 5.625%, 12/1/23 |
| 237,623 |
| 1,250,000 |
| WA State Hsg. Fin. Commn. Nonprofit Rev. Series 2007-B (Skyline At First Hill Proj.), 5.10%, 1/1/13 |
| 1,197,088 |
|
|
|
|
| |
|
|
|
|
| 3,794,129 |
|
|
|
|
| |
| |||||
| West Virginia (0.5%) |
|
| ||
| 1,250,000 |
| Pleasants Co. Pollution Ctrl. Rev. Series 1995-C (Monongahela Pwr. Co.), 6.15%, 5/1/15 |
| 1,252,825 |
|
|
|
|
| |
| |||||
| Wisconsin (3.5%) |
|
| ||
|
|
| WI Hlth. & Educ. Fac. Auth. Rev.: |
|
|
| 250,000 |
| Series 1993-C (Sorrowful Mother Corp. Proj.), 5.50%, 8/15/23 |
| 239,693 |
| 220,000 |
| Series 1998 (Lawrence Univ. Proj.), 5.125%, 4/15/28 |
| 186,142 |
| 2,450,000 |
| Series 1999-A (Aurora Hlth. Care Proj), 5.60%, 2/15/29 |
| 2,137,870 |
| 225,000 |
| Series 1999-B (Aurora Hlth. Care Proj), 5.50%, 2/15/15 |
| 225,176 |
| 500,000 |
| Series 1999-B (Aurora Hlth. Care Proj)(ACA insured), 5.625%, 2/15/29 |
| 444,740 |
| 900,000 |
| Series 1999 (Divine Savior, Inc. Proj.)(ACA insured), 5.70%, 6/1/28 |
| 802,323 |
|
|
| Series 2001 (Agnesian Healthcare, Inc. Proj.): |
|
|
| 550,000 |
| 6.00%, 7/1/17 |
| 558,283 |
| 340,000 |
| 6.00%, 7/1/21 |
| 340,986 |
|
|
| Series 2003 (Synergy Hlth., Inc. Proj.): |
|
|
| 225,000 |
| 6.00%, 11/15/23 |
| 215,501 |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | |
250,000 |
| 6.00%, 11/15/32 |
|
| 226,698 |
450,000 |
| Series 2004 (Blood Ctr. Southeastern Proj.), 5.50%, 6/1/24 |
|
| 416,543 |
425,000 |
| Series 2004 (Beaver Dam Cmnty. Hosp. Inc. Proj.), 5.50%, 8/15/14 |
|
| 410,100 |
500,000 |
| Series 2004-A (Beaver Dam Cmnty. Hosp., Inc.), 6.75%, 8/15/34 |
|
| 483,075 |
535,000 |
| Series 2005 (Vernon Mem. Hlth. Care Inc. Proj.), 4.65%, 3/1/15 |
|
| 505,211 |
500,000 |
| Ref. Series 2006 (Milwaukee Catholic Home Proj.), 5.00%, 7/1/26 |
|
| 422,565 |
400,000 |
| Series 2006-B (Upland Hills Health Inc. Proj.), 5.125%, 5/15/29 |
|
| 331,648 |
|
|
|
| ||
|
|
|
|
| 7,946,554 |
|
|
|
| ||
|
|
|
| ||
Total municipal bonds (cost: $241,955,474) |
|
| 206,603,676 | ||
|
|
|
| ||
| |||||
Closed-End Mutual Funds (4.1%) (2) |
|
|
| ||
31,000 |
| BlackRock Long-Term Municipal Advantage Trust (BTA) |
|
| 272,800 |
66,500 |
| BlackRock MuniYield Insured Fund (MYI) |
|
| 682,290 |
33,800 |
| BlackRock MuniHoldings Florida Insured Fund (MFL) |
|
| 327,522 |
54,500 |
| BlackRock MuniYield Florida Fund (MYF) |
|
| 544,455 |
23,700 |
| BlackRock MuniYield Michigan Insured Fund (MIY) |
|
| 242,925 |
23,000 |
| BlackRock MuniYield Michigan Insured Fund II (MYM) |
|
| 226,780 |
208,600 |
| DWS Municipal Income Trust (KTF) |
|
| 1,781,444 |
23,000 |
| Eaton Vance National Municipal Income Trust (FEV) |
|
| 255,990 |
44,000 |
| Insured Municipal Income Fund (PIF) |
|
| 468,600 |
58,300 |
| Investment Grade Municipal Income Fund (PPM) |
|
| 657,624 |
62,600 |
| MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund (MZF) |
|
| 624,122 |
3,500 |
| Morgan Stanley Quality Investment (IQT) |
|
| 35,420 |
76,000 |
| Nuveen Florida Investment Quality Municipal Fund (NQF) |
|
| 758,480 |
7,300 |
| Nuveen Florida Quality Income Municipal Fund (NUF) |
|
| 74,971 |
11,700 |
| Nuveen Michigan Premium Income Municipal Fund (NMP) |
|
| 122,850 |
21,500 |
| Nuveen Premier Municipal Income Fund (NPF) |
|
| 218,225 |
67,411 |
| Putnam Municipal Opportunities Trust (PMO) |
|
| 697,704 |
45,700 |
| Seligman Select Municipal Fund (SEL) |
|
| 421,354 |
36,800 |
| Van Kampen Advantage Municipal Income Trust II (VKI) |
|
| 365,424 |
25,700 |
| Van Kampen Pennsylvania Value Municipal Income Trust (VPV) |
|
| 291,695 |
25,889 |
| Van Kampen Trust Investment Grade Muni Fund (VGM) |
|
| 301,093 |
|
|
|
| ||
|
|
|
|
|
|
Total closed-end mutual funds (cost: $11,693,188) |
|
| 9,371,768 | ||
|
|
|
| ||
| |||||
Short-Term Securities (5.2%) (2) |
|
|
| ||
11,965,534 |
| Dreyfus Tax-Exempt Cash Management Fund, 5.01% |
|
| 11,965,534 |
|
|
|
| ||
|
|
|
|
|
|
Total short-term securities (cost: $11,965,534) |
|
| 11,965,534 | ||
|
|
|
| ||
|
|
|
| ||
Total investments in securities (cost: $265,614,196) (6) |
| $ | 227,940,978 | ||
|
|
See accompanying notes to portfolios of investments on page 52. 37
|
|
|
|
|
|
|
|
| |
| Six Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
| Senior Portfolio Managers |
|
|
|
|
|
|
|
|
The Sit Minnesota Tax Free Income Fund provided a total return of -2.82% for the six-month period ending September 30, 2008, which compared with a total return of -0.15% for the Lehman 5-Year Municipal Bond Index. The Fund’s 30-day SEC yield was 5.02% and its 12-month distribution rate was 4.31% as of September 30th.
We began gradually extending the Fund’s duration from its defensive positioning in early 2006 as it appeared that the latest round of Federal Reserve tightening was nearing completion. The Fund’s estimated duration was positioned longer than its benchmark at 4.8 years on September 30, 2008, compared with 4.1 years on March 31, 2006. The Lehman 5-year Municipal Bond Index yield peaked at 4.02% on June 30, 2007 and declined to 3.71% on September 30, 2008 as the municipal yield curve steepened, with the Fed cutting short term rates and longer term yields rising, in the flight to quality that occurred over the past 15 months.
Extending duration over the past year was the most important factor affecting the Fund’s recent performance. However, in the longer run, the higher yields available on longer duration securities are expected to enhance the Fund’s longer term returns. The Fund’s investments in non-rated municipal bonds totaled 36.3% on September 30th, compared with 37.5% six months earlier. Non-rated bonds were a significant factor in the Fund’s return, as the return on its non-rated bonds was approximately -2.2% lower than that of its rated investments. Furthermore, market sectors were not a major factor in the Fund’s returns as four of the five largest sectors in which the Fund invests, representing an aggregate 63.9% of the portfolio, earned returns that varied by less than 1.5% over the six-month period. The return provided by the Fund’s 10.8% allocation to single family bonds was less negative than the other large sectors. Finally, there were no credit-related issues which substantially affected the Fund’s return. The Fund remains highly diversified with 420 security holdings on September 30, 2008.
The U.S. Treasury and the Federal Reserve System are expected to continue pursuing strategies to avoid a financial and economic crisis. Municipal bond market conditions remain volatile, causing many investors to temporarily seek safety in U.S. Treasury securities. While the government’s efforts to restore confidence in the financial markets are expected to be successful, an economic recession is expected to result in lower municipal bond yields and higher future Fund net asset values.
Currently, intermediate and longer term municipal yields are considered to be at attractive levels compared with inflation expectations, the yield levels of U.S. Treasury securities and the yields available on investment grade taxable bonds. If municipal bond yields rise further, the Fund’s duration will be gradually extended to the longer end of the intermediate duration range, while not exceeding the Fund’s maximum permitted duration of 8 years.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The investment objective of the Minnesota Tax-Free Income Fund is to provide a high level of current income exempt from federal regular income tax and Minnesota regular personal income tax as is consistent with the preservation of capital.
During normal market conditions, the Fund invests 100% of its net assets in municipal securities that generate interest income that is exempt from regular federal income tax and Minnesota regular personal income tax. The Fund anticipates that substantially all of its distributions to its shareholders will be exempt as such. For investors subject to the alternative minimum tax (“AMT”), up to 20% of the Fund’s income may be alternative minimum taxable income.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 9/30/08: |
| $9.28 Per Share |
3/31/08: |
| $9.76 Per Share |
Total Net Assets: |
| $281.0 Million |
30-day SEC Yield: |
| 5.02% |
Tax Equivalent Yield: |
| 8.38%(1) |
12-Month Distribution Rate: |
| 4.31% |
Average Maturity: |
| 14.6 Years |
Duration to Estimated Avg. Life: |
| 4.8 Years(2) |
Implied Duration: |
| 6.1 Years(2) |
|
|
|
| (1) | For individuals in the 35.0% federal tax and 7.85% MN tax brackets. |
| (2) | See next page. |
|
PORTFOLIO STRUCTURE |
38
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|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
| Sit |
| Lehman |
| Lipper | ||||||
3 Month** |
| -3.74 | % |
| 0.66 | % |
| -3.34 | % | ||
6 Month** |
| -2.82 |
|
| -0.15 |
|
| N/A |
| ||
1 Year |
| -3.38 |
|
| 3.72 |
|
| -2.40 |
| ||
5 Years |
| 2.41 |
|
| 2.81 |
|
| 2.32 |
| ||
10 Years |
| 3.26 |
|
| 4.25 |
|
| 3.47 |
| ||
Inception |
| 4.42 |
|
| 4.69 |
|
| 4.23 |
| ||
| (12/1/93) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
| Sit |
| Lehman |
| Lipper | ||||||
1 Year |
| -3.38 |
|
| 3.72 |
|
| -2.40 |
| ||
5 Year |
| 12.67 |
|
| 14.84 |
|
| 12.14 |
| ||
10 Year |
| 37.80 |
|
| 51.62 |
|
| 40.71 |
| ||
Inception |
| 90.07 |
|
| 97.33 |
|
| 84.90 |
| ||
(12/1/93) |
|
|
|
|
|
|
|
|
| ||
*As of 9/30/08. |
|
|
| **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 9/30/08 would have grown to $19,007 in the Fund or $19,733 in the Lehman 5-Year Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
Lower of Moody’s, S&P Fitch or Duff & Phelps ratings used.
39
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| Municipal Bonds (95.9%) (2) |
|
| ||
| Education/Student Loan (12.0%) |
|
| ||
|
|
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006: |
|
|
| 4,228,090 |
| 5.46%, 1/1/28 |
| 3,596,202 |
| 5,261,284 |
| 5.30%, 11/1/32 |
| 4,239,332 |
|
|
| Minneapolis Educ. Fac. Lease Rev. Series 2006-A (Seed/Harvest Prep. Proj.) (LOC-U.S. Bank): |
|
|
| 775,000 |
| 5.125%, 1/1/16 |
| 709,241 |
| 875,000 |
| 6.25%, 1/1/21 |
| 790,799 |
|
|
| Minnesota Higher Educ. Fac. Auth. Rev.: |
|
|
| 360,558 |
| Lease Rev. Series 1999-5A (Concordia University), 5.25%, 4/25/14 |
| 357,630 |
| 700,000 |
| Series 1999-4Y (Augsburg College), 5.05%, 10/1/13 |
| 700,777 |
| 150,000 |
| Series 1999-4Y (Augsburg College), 5.20%, 10/1/16 |
| 147,356 |
| 75,000 |
| Series 1999-4Y (Augsburg College), 5.30%, 10/1/27 |
| 66,228 |
| 700,000 |
| Series 2005-6C (Augsburg College), 5.00%, 5/1/23 |
| 615,790 |
|
|
| Series 2006-6J1 (Augsburg College): |
|
|
| 505,000 |
| 5.00%, 5/1/10 |
| 515,140 |
| 595,000 |
| 5.00%, 5/1/12 |
| 615,938 |
| 100,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 4.875%, 10/1/09 |
| 100,095 |
| 675,000 |
| Series 1999-4Z (Northwestern Hlth. Services University), 5.20%, 10/1/13 |
| 675,256 |
| 50,000 |
| Series 2000-5E (St. Mary’s Univ.), 6.75%, 3/1/22 |
| 50,318 |
| 100,000 |
| Series 2000-5E (St. Mary’s Univ.), 6.75%, 3/1/26 |
| 100,407 |
| 270,000 |
| Series 2004-5U (St. Mary’s Univ.), 3.75%, 10/1/13 |
| 258,682 |
| 2,500,000 |
| Series 2004-5Y (Univ. St. Thomas), 5.25%, 10/1/34 |
| 2,291,500 |
| 2,000,000 |
| Series 2006-6I (Univ. St. Thomas), 5.00%, 4/1/23 |
| 1,883,800 |
|
|
| Series 2006-6K (College of Art & Design): |
|
|
| 270,000 |
| 4.50%, 5/1/10 |
| 271,787 |
| 750,000 |
| 5.00%, 5/1/19 |
| 699,615 |
| 2,862,926 |
| Series 2006-6M (College of St. Benedict), 4.493%, 10/1/16 |
| 2,812,710 |
|
|
| Series 2007-6S (St. Scholastica College): |
|
|
| 2,000,000 |
| 5.00%, 12/1/22 |
| 1,758,500 |
| 1,900,000 |
| 5.00%, 12/1/27 |
| 1,612,340 |
| 2,000,000 |
| Series 2007-6N (College St. Catherine), 4.75%, 4/26/27 |
| 1,878,080 |
| 1,115,000 |
| Moorhead Educ. Fac. Rev. Series 2005-A (Concordia College Corp. Proj.), 5.00%, 12/15/20 |
| 1,069,642 |
|
|
| Pine City Lease Rev. Series 2006-A (Lakes Intl. Language Academy Proj.): |
|
|
| 315,000 |
| 5.75%, 5/1/16 |
| 300,280 |
| 300,000 |
| 6.00%, 5/1/26 |
| 257,196 |
| 575,000 |
| Ramsey Lease Rev. Series 2004-A (Pact Charter School Proj.), 5.65%, 12/1/13 |
| 567,163 |
| 775,000 |
| Olmsted Co. Hsg. & Redev. Auth. Series 2007 (Schaeffer Academy Proj.), 4.977%, 4/25/27 |
| 630,168 |
|
|
| St. Paul Hsg. & Redev. Auth. Lease Rev.: |
|
|
| 375,000 |
| Series 2002-A (New Spirit Charter School Proj.), 6.50%, 12/1/12 |
| 378,761 |
| 605,000 |
| Series 2006-A (Hmong Academy Proj.), 5.50%, 9/1/18 |
| 556,667 |
|
|
| Series 2006-A (Cmnty. Peace Academy Proj.): |
|
|
| 685,000 |
| 4.35%, 12/1/12 |
| 657,929 |
| 600,000 |
| 4.35%, 12/1/14 |
| 556,254 |
| 1,500,000 |
| 5.00%, 12/1/18 |
| 1,374,060 |
| 500,000 |
| St. Paul Hsg. & Redev. Auth. Rev. Ref. Series 2007 (St. Paul Acad. & Summit Proj.), 5.00%, 10/1/24 |
| 460,615 |
| 100,000 |
| Victoria Private School Fac. Rev. Series 1999-A (Holy Family Catholic H.S. Proj.), 5.20%, 9/1/11 |
| 99,483 |
|
|
|
|
| |
|
|
|
|
| 33,655,741 |
|
|
|
|
| |
| Escrowed To Maturity/Prerefunded (2.5%) |
|
| ||
| 55,000 |
| Guam Economic Dev. Auth. Tobacco Settlement Asset-Backed Series 2001-A, 5.00%, 5/15/22 |
| 57,608 |
| 370,000 |
| Minneapolis Hlth. Care Fac. Rev. Series 1999 (Shelter Care Foundation Proj.), 6.00%, 4/1/10 |
| 379,298 |
| 50,000 |
| Northfield Hospital Rev. Series 2001-C, 6.00%, 11/1/21 |
| 53,842 |
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 5,000,000 |
| Puerto Rico Commonwealth Infrastruc. Fin. Auth. Special Obligation Series 2000-A, 5.50%, 10/1/32 |
| 5,028,800 |
| 655,000 |
| St. Paul Hsg. & Redev. Auth. Lease Rev. Series 2001-A )Cmnty. Of Peace Academy Proj.), 6.375%, 12/1/11 |
| 692,001 |
| 780,000 |
| Western MN Muni Pwr. Agy. Series 1979 (MBIA-IBC insured), 6.60%, 1/1/10 |
| 801,520 |
|
|
|
|
| |
|
|
|
|
| 7,013,069 |
|
|
|
|
| |
| General Obligation (1.3%) |
|
| ||
| 120,000 |
| Austin Impt. G.O. Series 1998-B, 4.70%, 2/1/13 |
| 120,128 |
| 200,000 |
| Barnesville Impt. G.O. Series 2002, 5.00%, 2/1/23 |
| 194,404 |
| 5,000 |
| Cold Spring G.O. Series 1998-B, 4.55%, 12/1/08 |
| 5,016 |
| 75,000 |
| Cold Spring G.O. Series 2000, 5.15%, 2/1/09 |
| 75,130 |
| 650,000 |
| Dakota Co. Cmnty. Dev. Agy. Sr. Hsg. Facs. G.O. Series 2007-A, 5.00%, 1/1/26 |
| 603,759 |
|
|
| Metropolitan Council Minneapolis-St. Paul Met. Area Tran. G.O. Series 2008-B: |
|
|
| 1,425,000 |
| 4.375%, 3/1/24 |
| 1,299,329 |
| 300,000 |
| 4.50%, 3/1/26 |
| 274,251 |
| 305,000 |
| North Mankato Impt. G.O. Series 2000-A, 4.75%, 2/1/10 |
| 305,464 |
| 500,000 |
| Northern Mariana Islands Commonwealth Ref. G.O. Series 2007-B, 5.00%, 10/1/22 |
| 417,545 |
| 150,000 |
| Sauk Rapids Tax Increment G.O. Series 1997-B, 5.25%, 8/1/12 |
| 150,236 |
| 100,000 |
| St. Paul Street Impt. Special Assessment G.O. Series 2000-B, 5.30%, 3/1/12 |
| 100,171 |
| 30,000 |
| Winona Water & Sewer G.O. Series 1998-C, 4.90%, 2/1/13 |
| 30,039 |
|
|
|
|
| |
|
|
|
|
| 3,575,472 |
|
|
|
|
| |
| Hospital/Health Care (23.5%) |
|
| ||
|
|
| Aitkin Hlth. Care Fac. Rev. Refunding Series (Riverwood Hlth. Care Ctr. Proj.): |
|
|
| 155,000 |
| 5.00%, 2/1/09 |
| 154,572 |
| 615,000 |
| 5.00%, 2/1/12 |
| 599,311 |
| 250,000 |
| 5.25%, 2/1/14 |
| 239,000 |
| 285,000 |
| Bemidji Hlth. Care Facs. Rev. Ref. Series 2006 (North County Health Svcs. Proj.), 5.00%, 9/1/21 |
| 264,947 |
| 4,025,000 |
| Breckenridge Rev. Series 2004-A (Catholic Hlth. Initiatives Proj.), 5.00%, 5/1/30 |
| 3,567,881 |
| 85,000 |
| Cambridge Hsg. & Hlth. Care Fac. Rev. Series 1998-C (Grandview West Proj.), 5.25%, 10/1/08 |
| 84,998 |
|
|
| Carlton Hlth. Care & Hsg. Fac. Rev. Ref. Series 2006 (Faith Care Ctr. Proj.): |
|
|
| 100,000 |
| 5.00%, 4/1/13 |
| 95,272 |
| 400,000 |
| 5.20%, 4/1/16 |
| 362,824 |
| 2,000,000 |
| Chippewa Co. Gross Rev. Series 2007 (Montevideo Hosp. Proj.), 4.625%, 3/1/14 |
| 1,885,300 |
|
|
| Cold Spring Nursing Home & Sr. Hsg. Rev. Series 2005 (Assumption Home, Inc. Proj.): |
|
|
| 135,000 |
| 4.70%, 3/1/14 |
| 126,394 |
| 145,000 |
| 4.80%, 3/1/15 |
| 134,943 |
| 150,000 |
| 4.90%, 3/1/16 |
| 135,744 |
|
|
| Crookston Hlth. Care Fac. Rev. Ref. Series 2007 (Riverview Hlth. Proj.): |
|
|
| 285,000 |
| 4.75%, 5/1/10 |
| 281,061 |
| 600,000 |
| 4.85%, 5/1/12 |
| 582,900 |
| 75,000 |
| Crookston Nursing Home & Multifamily Hsg. Rev Series 2002-A (Villa St. Vincent Proj.), 5.50%, 9/1/11 |
| 73,828 |
|
|
| Cuyuna Range Hosp. Dist. Hlth. Fac. Gross Rev.: |
|
|
|
|
| Series 2005: |
|
|
| 265,000 |
| 4.50%, 6/1/13 |
| 251,896 |
| 400,000 |
| 5.20%, 6/1/25 |
| 344,364 |
|
|
| Ref. Series 2007: |
|
|
| 430,000 |
| 4.75%, 6/1/18 |
| 388,028 |
| 500,000 |
| 5.00%, 6/1/29 |
| 407,020 |
| 1,500,000 |
| Detroit Lakes Hsg. Rev. Ref. Series 2004-E (Mankato Lutheran Proj.), 4.25%, 8/1/34 |
| 1,483,665 |
| 435,000 |
| Detroit Lakes Hsg. & Hlth. Facs. Rev. Ref. Series 2004-A (CDL Homes Proj.), 4.00%, 8/1/34 |
| 433,373 |
|
|
| Douglas Co. Gross Hlth. Care Facs. Rev. Series 2008-A (Douglas Co. Hosp. Proj.): |
|
|
| 1,000,000 |
| 5.00%, 7/1/18 |
| 947,370 |
| 1,500,000 |
| 6.00%, 7/1/28 |
| 1,391,925 |
| 250,000 |
| Duluth Econ. Dev. Auth. Hlth. Care Fac. Rev. Series 2002 (St. Luke’s Hosp. Proj.), 6.00%, 6/15/12 |
| 248,745 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 41
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 787,548 |
| Duluth Sr. Hsg. Loan Participation (Lakeshore Proj.) Series 2004, 4.00%, 8/20/36 |
| 753,857 |
| 963,599 |
| Duluth Hsg. & Redev. Auth. Sr. Hsg. Fac. Loan Participation (Lakeshore Proj.) |
| 944,000 |
|
|
| Elk River Rev. Series 1998 (Care Choice Member Proj.): |
|
|
| 725,000 |
| 5.60%, 8/1/13 |
| 711,609 |
| 115,000 |
| 5.75%, 8/1/23 |
| 101,416 |
| 260,000 |
| Fairbault Co. Hosp. Dist. Gross Rev. Series 1999 (Blue Earth Proj.), 5.30%, 12/1/08 |
| 259,516 |
| 1,925,000 |
| Glencoe Hlth. Care Fac. Rev. Series 2005 (Glencoe Regional Hlth. Svcs. Proj.), 5.00%, 4/1/25 |
| 1,633,613 |
|
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Augustana Home of Hastings Proj.): |
|
|
| 115,000 |
| 5.10%, 11/1/09 |
| 113,536 |
| 120,000 |
| 5.20%, 11/1/10 |
| 117,834 |
| 135,000 |
| 5.40%, 11/1/12 |
| 130,421 |
| 140,000 |
| 5.50%, 11/1/13 |
| 133,428 |
|
|
| Hastings Hlth. Care Fac. Rev. Series 1998 (Regina Med. Ctr.)(ACA insured): |
|
|
| 970,000 |
| 5.25%, 9/15/18 |
| 870,255 |
| 705,000 |
| 5.30%, 9/15/28 |
| 563,640 |
|
|
| Inver Grove Heights Nursing Home Rev. Refunding Series 2006 (Presbyterian Homes Care Proj.): |
|
|
| 250,000 |
| 5.00%, 10/1/11 |
| 243,490 |
| 290,000 |
| 5.00%, 10/1/12 |
| 279,316 |
|
|
| Maple Grove Hlth. Care Fac. Rev. Series 2005 (North Memorial Hlth. Care Proj.): |
|
|
| 1,000,000 |
| 5.00%, 9/1/20 |
| 938,350 |
| 2,000,000 |
| 5.00%, 9/1/29 |
| 1,737,600 |
|
|
| Maple Grove Hlth. Care Sys. Rev. Series 2007 (Maple Grove Hosp. Corp.): |
|
|
| 1,200,000 |
| 5.25%, 5/1/25 |
| 1,092,108 |
| 1,500,000 |
| 5.25%, 5/1/28 |
| 1,341,150 |
|
|
| Maplewood Hlth. Care Fac. Rev. Refunding Series 2005-A (VOA Care Centers Proj.): |
|
|
| 255,000 |
| 4.125%, 10/1/08 |
| 254,985 |
| 300,000 |
| 4.375%, 10/1/09 |
| 294,762 |
|
|
| Marshall Medical Center Gross Rev. (Weiner Memorial Medical Center Proj.): |
|
|
| 150,000 |
| Series 2003-B, 4.85%, 11/1/11 |
| 152,529 |
| 50,000 |
| Series 2003-A, 5.00%, 11/1/14 |
| 49,979 |
| 850,000 |
| Series 2003-A, 5.85%, 11/1/23 |
| 824,619 |
| 100,000 |
| Series 2003-A, 6.00%, 11/1/28 |
| 96,491 |
| 3,500,000 |
| Marshall Medical Ctr. Gross Rev. Series 2006 (Avera Marshall Reg. Med. Ctr. Proj.), 4.75%, 11/1/28 |
| 2,841,860 |
| 1,000,000 |
| Meeker Co. Hosp. Facs. Gross Rev. Series 2007 (Mem. Hosp. Proj.), 5.00%, 11/1/14 |
| 954,980 |
| 1,000,000 |
| Minneapolis Hsg. & Hlth. Care Facs. Rev. Ref. Series 2007-A (Providence Proj.), 5.50%, 10/1/14 |
| 943,360 |
|
|
| Minneapolis & St. Paul Hsg. & Redev. Auth. Hlth. Care Sys. Rev. Series 2003 (Health Partners Proj.): |
|
|
| 700,000 |
| 5.25%, 12/1/13 |
| 703,500 |
| 1,235,000 |
| 5.00%, 12/1/14 |
| 1,216,067 |
| 600,000 |
| 5.875%, 12/1/29 |
| 548,466 |
| 250,000 |
| Minneapolis Pooled Rev. Series 1999 (Care Choice Member Proj.), 5.75%, 4/1/19 |
| 226,770 |
|
|
| Minneapolis Hlth. Care Fac. Rev.: |
|
|
| 1,470,000 |
| Series 2005 (Jones-Harrison Residence Proj.), 5.40%, 10/1/25 |
| 1,230,346 |
|
|
| Series 2005-E (Augustana Chapel View Homes Proj.): |
|
|
| 200,000 |
| 4.20%, 6/1/09 |
| 197,774 |
| 205,000 |
| 4.40%, 6/1/10 |
| 200,355 |
| 220,000 |
| 4.55%, 6/1/11 |
| 212,604 |
| 240,000 |
| 4.80%, 6/1/13 |
| 229,135 |
| 250,000 |
| 4.90%, 6/1/14 |
| 237,202 |
| 255,000 |
| 5.00%, 6/1/15 |
| 237,808 |
| 270,000 |
| 5.10%, 6/1/16 |
| 249,331 |
| 285,000 |
| 5.25%, 6/1/17 |
| 262,710 |
42
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| |
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| ||
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|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
|
|
| Minneapolis Hsg. Fac. Rev. (Augustana Chapel View Homes Proj.): |
|
|
|
|
| Series 2004- A: |
|
|
| 315,000 |
| 5.20%, 1/1/11 |
| 309,009 |
| 500,000 |
| 5.75%, 1/1/19 |
| 471,660 |
| 530,000 |
| 5.80%, 1/1/24 |
| 483,381 |
| 200,000 |
| 5.50%, 6/1/27 |
| 167,342 |
| 500,000 |
| Refunding Series 2006-A 5.00%, 6/1/15 |
| 473,595 |
|
|
| MN Agr. & Econ. Dev. Board Hlth. Care Rev. Series 1999 (Benedictine Care Centers. Proj.): |
|
|
| 115,000 |
| 5.45%, 2/1/09 |
| 114,836 |
| 120,000 |
| 5.45%, 8/1/09 |
| 119,621 |
| 120,000 |
| 5.50%, 2/1/10 |
| 119,518 |
| 125,000 |
| 5.50%, 8/1/10 |
| 124,324 |
|
|
| MN Agr. & Econ. Dev. Board Rev.: |
|
|
| 405,000 |
| Series 2000 (Evangelical Lutheran Good Samaritan Society Proj.), 6.55%, 8/1/16 |
| 421,625 |
| 770,000 |
| Series 2002-B (Principal Custody Receipts Proj.), zero coupon, 3.85% effective yield, 11/15/22 |
| 684,268 |
| 220,000 |
| Series 2002 (Evangelical Lutheran Good Samaritan Society Proj.), 5.50%, 2/1/12 |
| 227,557 |
|
|
| Series 2000-A (Fairview Hlth. Care Sys. Proj.): |
|
|
| 10,000 |
| 6.375%, 11/15/22 |
| 10,164 |
| 20,000 |
| 6.375%, 11/15/29 |
| 20,215 |
|
|
| Moose Lake Cmnty. Hosp. Dist. Hlth. Facs. Rev. Ref. Series 2005-A (Crossover Proj.): |
|
|
| 110,000 |
| 4.10%, 12/1/10 |
| 106,972 |
| 750,000 |
| 5.10%, 12/1/24 |
| 628,095 |
| 300,000 |
| New Hope Hlth. Care Facs. Rev. Series 2003-A (St. Therese Home, Inc. Proj.), 5.90%, 10/1/23 |
| 271,455 |
|
|
| New Hope Hlth. Care Facs. Rev. (MN Masonic Home North Ridge Proj.): |
|
|
| 1,125,000 |
| 5.90%, 3/1/19 |
| 1,015,178 |
| 810,000 |
| 5.875%, 3/1/29 |
| 693,352 |
| 900,000 |
| Northfield Hospital Rev. Series 2006 5.50%, 11/1/15 |
| 899,739 |
|
|
| Olmsted Co. Hlth. Care Fac. Rev. Series 1998 (Olmsted Medical Ctr. Proj.): |
|
|
| 775,000 |
| 5.45%, 7/1/13 |
| 764,995 |
| 900,000 |
| 5.55%, 7/1/19 |
| 819,225 |
|
|
| Pine Island Hlth. Care Facs. Rev. Series 2001 (Olmsted Med. Ctr. Proj.): |
|
|
| 155,000 |
| 4.90%, 7/1/09 |
| 154,022 |
| 240,000 |
| 5.00%, 7/1/10 |
| 237,096 |
|
|
| Redwood Falls Hosp. Fac. Gross Rev. Series 2006 (Redwood Area Hosp. Proj.): |
|
|
| 190,000 |
| 5.00%, 12/1/09 |
| 188,415 |
| 100,000 |
| 5.00%, 12/1/10 |
| 98,523 |
| 1,000,000 |
| 5.00%, 12/1/21 |
| 858,990 |
| 100,000 |
| Rochester Hlth. Care Facs. Rev. Series 2006 (Mayo Clinic Proj.), 5.00%, 11/15/36 |
| 89,089 |
| 500,000 |
| Rochester Hlth. Care & Hsg. Rev. Series 2003-A (Samaritan Bethany Inc. Proj.), 6.25%, 8/1/19 |
| 469,265 |
|
|
| Shakopee Hlth. Care Facs. Rev. Series 2004 (St. Francis Regl. Med. Ctr. Proj.): |
|
|
| 125,000 |
| 5.10%, 9/1/25 |
| 108,348 |
| 3,475,000 |
| 5.25%, 9/1/34 |
| 2,881,157 |
|
|
| Stillwater Hlth. Care Rev. Series 2005 (Hlth. Sys. Obligation Proj.): |
|
|
| 2,500,000 |
| 5.00%, 6/1/25 |
| 2,214,550 |
| 750,000 |
| 5.00%, 6/1/35 |
| 620,588 |
| 1,000,000 |
| St. Louis Park Hlth. Care Facs. Rev. Series 2008-C (Park Nicollet Hlth. Svcs. Proj.), 5.50%, 7/1/23 |
| 937,450 |
|
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 1998 (Regions Hosp. Proj.): |
|
|
| 250,000 |
| 5.00%, 5/15/10 |
| 251,493 |
| 60,000 |
| 5.00%, 5/15/11 |
| 60,235 |
| 1,365,000 |
| 5.20%, 5/15/13 |
| 1,366,542 |
| 2,070,000 |
| 5.25%, 5/15/18 |
| 1,975,463 |
| 1,000,000 |
| St. Paul Hsg. & Redev. Auth. Hosp. Rev. Series 2005 (Health East Proj.), 5.25%, 11/15/14 |
| 974,170 |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 52. 43
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
| 2,000,000 |
| St. Paul Hsg. & Redev. Auth. Nursing Home Dev. Rev. Series 2006, 5.63%,10/1/33 |
| 1,606,280 |
| 1,210,000 |
| St. Paul HRA Rev. Refunding Series 1996-C (St. Mary’s Home Proj.), 7.00%, 7/1/21 |
| 1,210,278 |
|
|
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2005 (Gillette Childrens Hosp. Proj.): |
|
|
| 300,000 |
| 4.00%, 2/1/11 |
| 286,830 |
| 200,000 |
| 5.00%, 2/1/13 |
| 193,408 |
| 210,000 |
| 5.00%, 2/1/14 |
| 201,069 |
| 160,000 |
| 5.00%, 2/1/15 |
| 150,851 |
| 340,000 |
| St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2001-A (Model Cities Hlth. Ctr.), 6.50%, 11/1/11 |
| 332,574 |
| 580,000 |
| St. Paul Hsg. & Redev. Auth. Hlth. Care Fac. Rev. Series 2006 |
|
|
|
|
| (HealthPartners Oblig. Group Proj.), 5.25%, 5/15/36 |
| 474,133 |
| 540,000 |
| St. Paul Port Auth. Lease Rev. Series 2005-A (Health East Midway Campus Proj.), 5.00%, 5/1/10 |
| 535,847 |
| 50,000 |
| Washington Co. Hsg. & Redev. Auth. Hosp. Rev. Series 1998 (Healtheast Proj.), 5.25%, 11/15/12 |
| 49,423 |
|
|
|
|
| |
|
|
|
|
| 66,088,348 |
|
|
|
|
| |
Industrial / Pollution Control (3.6%) |
|
| |||
| 605,000 |
| Anoka Co. Solid Waste Disp. Rev. Series 1987-A (Natl. Rural Util. Proj.), 6.95%, 12/1/08 (4) |
| 607,468 |
| 585,000 |
| Burnsville Solid Waste Rev. Refunding Series 2003-A (Freeway Transfer Inc. Proj.), 4.15%, 4/1/10 (4) |
| 581,133 |
| 615,000 |
| Cohasset Pollution Ctrl. Rev. Refunding Series 2004 (Allete, Inc. Proj.), 4.95%, 7/1/22 |
| 551,434 |
| 355,000 |
| E. Grand Forks Indus. Dev. Rev. Refunding Series 2001-B (Am. Crystal Sugar Proj.), 5.40%, 4/1/11 |
| 362,547 |
| 500,000 |
| Otter Tail Co. Rev. Sub. Series 2007-A (Otter Tail Proj.), 7.50%, 11/1/19 (4) |
| 406,555 |
|
|
| Owatonna Industrial Dev. Rev. Series 1997 (Slidell, Inc. Proj.): |
|
|
| 280,000 |
| 7.25%, 5/1/14 (4)(7) |
| 184,800 |
| 505,000 |
| 7.375%, 5/1/17 (4)(7) |
| 333,300 |
|
|
| Puerto Rico Childrens Trust Fund Tobacco Settlement Rev. : |
|
|
| 300,000 |
| Series 2002, 4.00%, 5/15/10 |
| 297,432 |
| 990,000 |
| Series 2002,5.375%, 5/15/33 |
| 854,033 |
| 465,000 |
| Roseville Dev. Rev. Refunding Series 2004 (Roseville Office Plaza Proj.), 4.625%, 8/1/12 |
| 474,793 |
| 265,000 |
| Sank Centre Industrial Dev. Rev. Series 1998 (Seluemed LLP Proj.)(LOC First Trust), 5.75%, 4/1/18 (4) |
| 246,455 |
|
|
| St. Paul Hsg. & Redev. Auth. District Cooling Rev. Series 1998-J: |
|
|
| 95,000 |
| 5.125%, 3/1/12 |
| 95,491 |
| 500,000 |
| 5.35%, 3/1/18 |
| 500,495 |
|
|
| Virgin Islands Tobacco Settlement Financing Corp. Asset-Backed Rev. Series 2001: |
|
|
| 750,000 |
| zero coupon, 4.95% effective yield, 5/15/14 |
| 718,680 |
| 1,305,000 |
| 5.00%, 5/15/21 |
| 1,157,117 |
| 2,700,000 |
| White Earth Band of Chippewa Indians Rev. Series 2000-A, 7.00%, 12/1/11 |
| 2,748,735 |
|
|
|
|
| |
|
|
|
|
| 10,120,468 |
|
|
|
|
| |
Insured (4.4%) |
|
| |||
| 1,500,000 |
| Bemidji Hlth. Care Facs. Rev. Series 2002 (North Country Hlth. Svcs. Proj.) (Radian insured) |
|
|
|
|
| 5.00%, 9/1/24 |
| 1,347,480 |
| 1,600,000 |
| Cohasset Poll. Ctl. Rev. Ref. Series 2004 (Coll. Allete Proj.) (Radian-IBCC insured), 4.95%, 7/1/22 |
| 1,431,872 |
| 20,000 |
| Itasca Co. ISD No. 318 G.O. Series 1996 (MBIA insured), 5.20%, 2/1/10 |
| 20,038 |
|
|
| Minneapolis & St. Paul Metro Airport Comm. Airport Rev.: |
|
|
| 100,000 |
| Ref. Sub. Series 2005-C (MBIA-IBC insured), 5.00%, 1/1/31 |
| 91,227 |
| 1,250,000 |
| Sub. Series 2005-B (Ambac insured), 5.00%, 1/1/25 (4) |
| 1,054,525 |
| 485,000 |
| MN HFA Single Family Mtg. Rev. Series 2001-A (MBIA insured), 5.35%, 7/1/17 |
| 498,410 |
|
|
| Perham Gas Utility Rev. Series 1999 (Radian insured): |
|
|
| 300,000 |
| 5.35%, 6/1/19 |
| 300,681 |
| 50,000 |
| 5.45%, 6/1/29 |
| 44,341 |
| 1,000,000 |
| Puerto Rico Cwlth. Hwy. & Trnsn. Auth. Rev. Ref. Series 2007-N (FSA insured), variable rate, 7/1/45 |
| 570,000 |
| 100,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 1997-C (MBIA-IBC insured), 5.25%, 7/1/09 |
| 100,962 |
| 600,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU (FSA insured), variable rate, 7/1/29 |
| 384,000 |
| 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 |
| 200,460 |
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
| 510,000 |
| St. Cloud Hosp. Facs. Rev. Ref. (St. Cloud Hosp. Proj.) (Ambac insured), |
|
|
|
|
| Series 1996-B, 5.00%, 7/1/20 |
| 488,310 |
|
|
| St. Cloud Hlth. Care Rev. Series 2000-A (St. Cloud Hosp. Obligated Group)(FSA insured): |
|
|
| 200,000 |
| 5.125%, 5/1/09 |
| 203,052 |
| 250,000 |
| 5.75%, 5/1/26 |
| 251,835 |
| 2,270,000 |
| St. Paul Hsg. & Redev. Sales Tax Rev. Refunding Series 1996 (Civic Center Proj.) |
|
|
|
|
| (FSA insured), 7.10%, 11/1/23 |
| 2,555,067 |
| 3,100,000 |
| Southern MN Pwr. Agy. Pwr. Supply Sys. Rev Series 2006, 4.84%, 1/1/13 |
| 2,897,539 |
|
|
|
|
| |
|
|
|
|
| 12,439,799 |
|
|
|
|
| |
Multifamily Mortgage (19.3%) |
|
| |||
|
|
| Apple Valley Multifamily Hsg. Rev. Refunding Series 1998-A (Mtg. Loan/Apple Valley |
|
|
|
|
| Villa Proj.) (GNMA collateralized): |
|
|
| 40,000 |
| 4.90%, 8/1/09 |
| 40,066 |
| 1,520,000 |
| 5.25%, 8/1/18 |
| 1,520,304 |
|
|
| Austin Hsg. & Redev. Auth. Governmental Hsg. Gross Rev. (Courtyard Res. Proj.): |
|
|
| 640,000 |
| Series 2000-A, 7.15%, 1/1/20 |
| 646,899 |
| 500,000 |
| Series 2000-A, 7.25%, 1/1/32 |
| 502,790 |
| 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 |
| 2,447,871 |
|
|
| Chaska Multifamily Hsg. Rev. Series 1999 (West Suburban Hsg. Partners Proj.): |
|
|
| 65,000 |
| 5.00%, 9/1/09 (4) |
| 65,038 |
| 495,000 |
| 5.375%, 9/1/14 (4) |
| 478,076 |
| 500,000 |
| Cloquet Hsg. Fac. Rev. Ref. Series 2005-A (HADC Cloquet LLC Proj.), 5.50%, 8/1/25 |
| 419,060 |
| 700,000 |
| Coon Rapids Multifamily Hsg. Rev. Refunding Series 1997- A (Margaret Place Apts. Proj.), |
|
|
|
|
| 6.50%, 5/1/25 |
| 680,603 |
|
|
| Coon Rapids Senior Hsg. Rev. Refunding Series 1998 (Epiphany Sr. Citizens Hsg. Corp. Proj.): |
|
|
| 115,000 |
| 5.40%, 11/1/08 |
| 114,930 |
| 170,000 |
| 5.50%, 11/1/10 |
| 167,628 |
| 545,000 |
| 5.80%, 11/1/18 |
| 520,246 |
| 3,065,000 |
| Cottage Grove Sr. Hsg. Rev. Series 2006-A (Cottage Grove, Inc. Proj.), 5.00%, 12/1/31 |
| 2,396,002 |
|
|
| Dakota Co. Cmnty. Dev. Agy. Multifamily Hsg. Rev. Ref. Series 2007-A (Commons On Marice Proj.): |
|
|
| 120,000 |
| 4.30%, 11/1/08 |
| 119,828 |
| 150,000 |
| 4.40%, 11/1/09 |
| 147,658 |
|
|
| Eden Prairie Multifamily Hsg. Rev. Refunding: |
|
|
| 470,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.00%, 8/20/21 |
| 498,614 |
| 675,000 |
| Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.15%, 8/20/31 |
| 710,849 |
| 1,185,000 |
| Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.20%, 2/20/43 |
| 1,245,945 |
| 740,000 |
| Subordinate Series 2001-C (Rolling Hills Proj.), 9.00%, 4/1/43 |
| 697,672 |
|
|
| Eveleth Multifamily Hsg. Rev. Sr. Series 2006-A1 (Manor House Woodland Proj.): |
|
|
| 200,000 |
| 4.90%, 10/1/09 |
| 197,498 |
| 140,000 |
| 4.95%, 10/1/10 |
| 136,910 |
| 100,000 |
| 5.00%, 10/1/11 |
| 96,731 |
| 155,000 |
| 5.10%, 10/1/12 |
| 149,164 |
| 165,000 |
| 5.15%, 10/1/13 |
| 157,073 |
|
|
| Faribault Hsg. & Redev. Auth. Govt. Hsg. Dev. Gross Rev. Ref. Series 1998-A (Trails Edge Apts. Proj.): |
|
|
| 355,000 |
| 5.125%, 2/1/18 |
| 330,249 |
| 650,000 |
| 5.25%, 2/1/28 |
| 538,180 |
|
|
| Fairmont Hsg. Fac. Rev. Series 2002-A1 (Homestead-GEAC Proj.): |
|
|
| 885,000 |
| 6.625%, 10/1/11 |
| 872,451 |
| 295,000 |
| 6.875%, 10/1/14 |
| 288,575 |
See accompanying notes to portfolios of investments on page 52. 45
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
| September 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) |
|
|
| Fairmont Hsg. Fac. Rev. Series 2005-A (Goldfinch Estates-GEAC Proj.): |
|
|
| 300,000 |
| 5.75%, 10/1/17 |
| 269,340 |
| 290,000 |
| 6.00%, 10/1/21 |
| 255,800 |
|
|
| Golden Valley Rev. Series 1999-A (Covenant Retirement Cmntys. Proj.): |
|
|
| 695,000 |
| 5.50%, 12/1/25 |
| 622,998 |
| 1,785,000 |
| 5.50%, 12/1/29 |
| 1,562,571 |
|
|
| Grand Rapids Hsg. & Redev. Auth. (Lakeshore Place and Forest Park West Apts. Proj.): |
|
|
| 25,000 |
| Series 1999-B, 5.00%, 10/1/09 |
| 25,316 |
| 500,000 |
| Series 1999-A, 5.20%, 10/1/19 |
| 481,350 |
| 1,660,000 |
| Series 1999-A, 5.30%, 10/1/29 |
| 1,469,880 |
| 120,000 |
| Hutchinson Hsg. Fac. Rev. Series 2003-A (Prince of Peace Apts. Proj.), 4.50%, 10/1/08 |
| 119,999 |
| 245,000 |
| Inver Grove Heights Nursing Home Rev. Ref. Series 2006 (Presbyterian Homes |
|
|
|
|
| Care Proj.), 5.50%, 10/1/33 |
| 214,105 |
| 1,400,000 |
| Maplewood Multifamily Hsg. Rev. Series 1998 (Park Edge Apts. Proj.), 6.50%, 5/1/29 (4) |
| 1,251,530 |
| 2,765,000 |
| Minneapolis & St. Paul Hsg. & Redev. Auth. Multifamily Hsg. Rev. Series (Torre De San Proj.) |
|
|
|
|
| (GNMA Collateralized), 4.75%, 1/20/42 |
| 2,072,948 |
|
|
| Minneapolis Multifamily Hsg. Rev.: |
|
|
| 320,000 |
| Series 1996 (Belmont Apts.), 7.25%, 11/1/16 |
| 315,754 |
| 5,020,000 |
| Series 1996-A (Nicollet Towers) (Section 8), 6.00%, 12/01/19 |
| 5,021,255 |
| 115,000 |
| Ref. Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 4.75%, 12/20/12 (4) |
| 115,046 |
| 1,200,000 |
| Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 5.10%, 12/20/18 (4) |
| 1,145,760 |
| 315,000 |
| Series 2000 (Garr Scott Loft Proj.) (LOC U.S. Bank), 5.95%, 5/1/30 (4) |
| 316,159 |
| 835,000 |
| Series 2007 (Blaisdell Apts. Proj.), 5.10%, 4/1/17 (4) |
| 760,259 |
|
|
| Ref. Series 2007-A (Keeler Apts. Proj.): |
|
|
| 150,000 |
| 4.50%, 10/1/12 |
| 144,207 |
| 580,000 |
| 4.65%, 10/1/15 |
| 535,763 |
|
|
| Moorhead Sr. Hsg. Rev. Series 2006 (Sheyenne Crossing Proj.): |
|
|
| 300,000 |
| 5.00%, 4/1/13 |
| 286,947 |
| 170,000 |
| 5.10%, 4/1/14 |
| 162,032 |
|
|
| MN HFA Hsg. Fin. Agy. Rental Hsg.: |
|
|
| 85,000 |
| Series 2004-A, 4.875%, 8/1/24 (4) |
| 73,196 |
|
|
| Series 1997-A: |
|
|
| 60,000 |
| 5.40%, 8/1/10 (4) |
| 60,519 |
| 125,000 |
| 5.45%, 8/1/11(4) |
| 126,034 |
| 100,000 |
| Series 2000-A (Section 8), 5.375%, 2/1/09 (4) |
| 100,735 |
| 1,350,000 |
| MN HFA Residential Hsg. Rev. Series 2006-I, 5.00%, 7/1/21 |
| 1,224,585 |
| 650,000 |
| MN HFA Residential Hsg. Rev. Series 2006-A1, 5.10%, 8/1/47 |
| 521,619 |
|
|
| Minnetonka Multifamily Hsg. Rev. Ref. Series 1999-A (GNMA coll.) (Archer Heights Apts. Proj.): |
|
|
| 540,000 |
| 5.10%, 7/20/13 (4) |
| 543,785 |
| 975,000 |
| 5.20%, 1/20/18 (4) |
| 945,350 |
|
|
| North Oaks Sr. Hsg. Rev. Series 2007 (Presbyterian Homes North Oaks Proj.): |
|
|
| 500,000 |
| 5.25%, 10/1/13 |
| 483,790 |
| 1,565,000 |
| 5.625%, 10/1/17 |
| 1,465,372 |
| 500,000 |
| 5.75%, 10/1/22 |
| 458,765 |
|
|
| Northwest MN Multi Co. Hsg. & Redev. Auth. Hsg. Rev. Series 2005-A (Pooled Hsg. Proj.): |
|
|
| 145,000 |
| 4.50%, 7/1/09 |
| 145,044 |
| 115,000 |
| 4.75%, 7/1/10 |
| 114,839 |
|
|
| Norwood Young America Econ. Dev. Auth. Gov. Rev. Series 2005-A (Harbor at Peace Village Proj.): |
|
|
| 150,000 |
| 5.35%, 8/1/15 |
| 142,488 |
| 200,000 |
| 5.625%, 8/1/20 |
| 180,328 |
| 550,000 |
| 5.75%, 8/1/25 |
| 474,766 |
| 250,000 |
| 6.00%, 8/1/31 |
| 212,885 |
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 600,000 |
| Oakdale Multifamily Sr. Hsg. Rev. Refunding Series 2004 (Oak Meadows Proj.), 5.00%, 4/1/12 |
| 577,638 |
|
|
| Oronoco Multifamily Hsg. Rev. Ref. Series 2006 (Wedum Shorewood Campus Proj.): |
|
|
| 305,000 |
| 4.65%, 6/1/09 |
| 302,615 |
| 725,000 |
| 4.70%, 6/1/11 |
| 703,083 |
|
|
| Pine City Hlth. Care & Hsg. Rev. Series 2006-A (North Branc Proj.): |
|
|
| 125,000 |
| 4.50%, 10/20/16 |
| 121,994 |
| 300,000 |
| 4.75%, 10/20/21 |
| 273,273 |
| 500,000 |
| Richfield Sr. Hsg. Rev. Refunding Series 2004-A (Richfield Sr. Hsg., Inc. Proj.), 5.00%, 12/1/15 |
| 460,205 |
| 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) |
| 2,865,520 |
| 115,000 |
| Shoreview Sr. Hsg. Rev. Series 2005-A (Shoreview Sr. Residence Proj.), 3.75%, 5/1/09 |
| 114,632 |
| 600,000 |
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev. Refunding Series 1998 |
|
|
|
|
| (Northway Manor Apts. Proj.) (Section 8), 5.35%, 12/1/18 |
| 526,416 |
|
|
| St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev.: |
|
|
| 1,365,000 |
| Series 1993 (Germain Towers Proj.) (Section 8), 5.90%, 9/1/20 |
| 1,199,671 |
| 60,000 |
| Series 1999-A (Parkview Terrace Apts. Proj.) (Section 8), 5.00%, 6/1/09 |
| 45,900 |
| 500,000 |
| St. Louis Park Multifamily Hsg. Rev. Refunding Series 1998-A (Park Ridge Apts. Proj.) |
|
|
|
|
| (GNMA collateralized), 5.25%, 11/1/20 |
| 500,075 |
|
|
| St. Louis Park Rev. Ref. Series 2006 (Roitenberg Family Proj.): |
|
|
| 140,000 |
| 4.65%, 8/15/09 |
| 138,642 |
| 525,000 |
| 5.50%, 8/15/26 |
| 464,867 |
| 200,000 |
| St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Series 1995 |
|
|
|
|
| (Sun Cliffe Apts. Proj.) (GNMA collateralized), 5.875%, 7/1/15 |
| 200,708 |
| 1,000,000 |
| St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Ref. Series 2007-A, |
|
|
|
|
| (Marian Ctr. Proj.), 5.20%, 11/1/22 |
| 828,280 |
|
|
| St. Paul Hsg. & Redev. Auth. Rev. Series 2007-A (Rossy & Richard Schaller Proj.): |
|
|
| 400,000 |
| 5.15%, 10/1/42 |
| 293,956 |
| 450,000 |
| 4.80%, 10/1/18 |
| 385,038 |
| 735,000 |
| Stillwater Multifamily Hsg. Rev. Series 2007 (Orleans Homes LP Proj.), 5.00%, 2/1/17 (4) |
| 669,695 |
| 120,000 |
| Victoria Sr. Hsg. Rev. Series 2003 (Chanhassen, Inc. Proj.), 5.50%, 8/1/18 |
| 110,466 |
|
|
| 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 |
| 751,852 |
| 695,000 |
| 2002 (Woodland Park Apts. Proj.) (Co. Guaranteed), 4.70%, 10/1/26 |
| 620,711 |
| 1,000,000 |
| Willmar Hsg. & Redev. Auth. Multifamily Rev. Sub. Series 2008-B (Copperleaf Proj.), 8.00%, 3/15/41 |
| 980,680 |
| 500,000 |
| Woodbury Econ. Dev. Auth. Sr. Hsg. Rev. Series 2006-B (Summerhouse Woodbury Proj.), |
|
|
|
|
| 5.75%, 6/1/41 |
| 422,880 |
|
|
|
|
| |
|
|
|
|
| 54,168,826 |
|
|
|
|
| |
| Municipal Lease (2.2%) (5) |
|
| ||
| 200,000 |
| Andover Econ. Dev. Auth. Public Fac. Lease Rev. Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 |
| 209,724 |
| 300,000 |
| Andover Econ. Dev. Auth. Lease Rev. Prerefunded Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 |
| 314,586 |
| 40,000 |
| Anoka Co. C.O.P. Series 1998, 5.40%, 6/1/28 |
| 39,600 |
| 100,000 |
| Big Lake Econ. Dev. Auth. Public Proj. Rev. Series 2005-A, 4.20%, 2/1/10 |
| 100,718 |
| 1,963,446 |
| Carver Scott Co. Lease Purchase Agreement Series 2005, 5.00%, 8/4/20 |
| 1,711,929 |
| 50,000 |
| Chaska Econ. Dev. Auth. ISO No. 112 Sch. Facs. Lease Rev. Series 1999-A, 5.125%, 12/1/09 |
| 51,380 |
| 89,000 |
| Hennepin Co. Hsg. & Redev. Auth. Rev. Series 1993-A (Community Provider Program), 5.70%, 8/1/13 |
| 92,125 |
| 614,588 |
| Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 4.78%, 3/15/13 |
| 605,547 |
| 65,000 |
| Mountain Iron Hsg. & Redev. Auth. Rev. Series 2001-A (Arrowhead Library Sys. Proj.), 5.00%, 9/1/09 |
| 65,910 |
|
|
| Virginia Hsg. & Redev. Auth. Hlth. Care Fac. Lease Rev. Series 2005: |
|
|
| 275,000 |
| 4.00%, 10/1/08 |
| 275,003 |
| 300,000 |
| 4.00%, 10/1/09 |
| 300,264 |
| 300,000 |
| 4.50%, 10/1/10 |
| 302,112 |
| 200,000 |
| 5.00%, 10/1/11 |
| 202,556 |
See accompanying notes to portfolios of investments on page 52. 47
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 1,250,000 |
| 5.125%, 10/1/20 |
| 1,133,175 |
| 150,000 |
| 5.25%, 10/1/14 |
| 149,315 |
| 400,000 |
| 5.25%, 10/1/25 |
| 345,672 |
| 315,000 |
| 5.375%, 10/1/30 |
| 265,406 |
|
|
|
|
| |
|
|
|
|
| 6,165,022 |
|
|
|
|
| |
| Public Facilities (0.4%) |
|
| ||
| 50,000 |
| MN Agr. Soc. State Fair Rev. Series 2003, 5.00%, 9/15/20 |
| 46,096 |
| 250,000 |
| Rockville Econ. Dev. Auth. Pub. Proj. Lease Rev. Series 2005-A, 4.00%, 2/1/14 |
| 243,608 |
|
|
| Spring Grove Econ. Dev. Auth. Pub. Proj. Rev. Series 2006-A: |
|
|
| 135,000 |
| 4.625%, 2/1/12 |
| 135,081 |
| 255,000 |
| 5.00%, 2/1/16 |
| 250,321 |
| 125,000 |
| 5.10%, 2/1/18 |
| 119,941 |
|
|
| Victoria Recreational Facility Gross Rev. Series 2002: |
|
|
| 70,000 |
| 4.75%, 2/1/12 |
| 71,300 |
| 75,000 |
| 4.75%, 8/1/12 |
| 76,393 |
| 85,000 |
| 5.10%, 8/1/15 |
| 86,852 |
| 205,000 |
| Victoria Rec. Fac. Gross Rev. Ref. Crossover Series 2006-A, 4.55%, 8/1/17 |
| 178,555 |
|
|
|
|
| |
|
|
|
|
| 1,208,147 |
|
|
|
|
| |
| Single Family Mortgage (10.8%) |
|
| ||
|
|
| Dakota Co. Cmnty. Dev. Agy. Single Family Mtg. Rev.: |
|
|
| 2,809,939 |
| Series 2006 (FNMA, GNMA, & FHLMC backed), 5.30%, 12/1/39 (4) |
| 2,520,628 |
| 1,983,281 |
| Series 2007-A (FNMA, GNMA, & FHLMC backed), 5.125%, 12/1/40 (4) |
| 1,793,798 |
|
|
| Minneapo1is- St. Paul Hsg. Fin. Bd. Single Family Mtg. Rev. (FNMA & GNMA backed): |
|
|
| 20,000 |
| Series 1997, 6.25%, 11/1/30 |
| 19,600 |
| 1,212,272 |
| Series 2005-A3, 5.10%, 4/1/27 |
| 1,254,071 |
| 3,960,775 |
| Series 2007-A1, 5.25%, 12/1/40 (4) |
| 3,612,187 |
| 1,000,000 |
| Series 2007-A2, 5.52%, 3/1/41 |
| 915,790 |
|
|
| MN HFA Single Family Mtg. Rev.: |
|
|
| 350,000 |
| Series 1994-E, 5.60%, 7/1/13 |
| 354,788 |
| 195,000 |
| Series 1994-E, 5.90%, 7/1/25 |
| 199,218 |
| 75,000 |
| Series 1996-D, 6.00%, 1/1/16 |
| 75,081 |
| 50,000 |
| Series 1997-A, 5.60%, 7/1/09 |
| 50,252 |
| 210,000 |
| Series 1997-1, 5.50%, 1/1/17 |
| 211,134 |
| 125,000 |
| Series 1996-H, 6.00%, 1/1/21 |
| 125,056 |
| 485,000 |
| Series 1997-D, 5.85%, 7/1/19 (4) |
| 490,607 |
| 30,000 |
| Series 1997-E, 5.90%, 7/1/29 (4) |
| 30,363 |
| 10,000 |
| Series 1997-G, 6.00%, 1/1/18 |
| 10,117 |
| 610,000 |
| Series 1998-C, 5.25%, 1/1/17 |
| 620,449 |
| 175,000 |
| Series 1998-F-1, 5.45%, 1/1/17 |
| 176,563 |
| 50,000 |
| Series 1998-F, 5.70%, 1/1/17 |
| 50,478 |
| 55,000 |
| Series 1998-A, 4.80%, 7/1/09 |
| 55,639 |
| 60,000 |
| Series 1998-A, 4.90%, 7/1/10 |
| 60,680 |
| 2,420,000 |
| Series 1998-G, 6.00%, 7/1/22 (4) |
| 2,435,101 |
| 2,905,000 |
| Series 1999-B, 5.20%, 7/1/17 |
| 2,926,410 |
| 305,000 |
| Series 1999-B, 5.25%, 1/1/20 |
| 307,315 |
| 55,000 |
| Series 1999-H, 5.30%, 7/1/11 |
| 55,964 |
| 100,000 |
| Series 2000-A, 5.75%, 7/1/18 |
| 103,643 |
| 115,000 |
| Series 2000-C, 6.10%, 7/1/30 (4) |
| 117,445 |
| 320,000 |
| Series 2003-I, 4.30%, 7/1/11 (4) |
| 321,997 |
| 600,000 |
| Series 2003-I, 5.10%, 7/1/20 (4) |
| 561,114 |
| 1,000,000 |
| Series 2005-G, 4.30%, 1/1/18 |
| 956,440 |
| 1,750,000 |
| Series 2006-B, 5.00%, 1/1/37 (4) |
| 1,715,228 |
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
| 1,950,000 |
| Series 2006-M, 4.80%, 7/1/26 (4) |
| 1,621,991 |
| 1,000,000 |
| Series 2007-I, 4.75%, 7/1/27 |
| 817,430 |
| 2,000,000 |
| Series 2007-Q, 5.15%, 7/1/28 (4) |
| 1,731,780 |
| 2,000,000 |
| Series 2007-Q, 5.25%, 7/1/33 (4) |
| 1,724,840 |
| 1,000,000 |
| Series 2008-B, 5.50%, 7/1/28 (4) |
| 906,020 |
| 1,500,000 |
| Series 2008-B, 5.65%, 7/1/33 (4) |
| 1,357,920 |
|
|
|
|
| |
|
|
|
|
| 30,287,137 |
|
|
|
|
| |
| Transportation (1.6%) |
|
| ||
|
|
| Minneapolis & St. Paul Metro Airport Comm. Airport Rev.: |
|
|
| 75,000 |
| Series 1999-B, 5.25%, 1/1/18 (4) |
| 72,331 |
| 20,000 |
| Series 2001-B, 5.75%, 1/1/16 |
| 20,115 |
| 1,000,000 |
| Sub. Series 2001-D, 5.75%, 1/1/14 (4) |
| 1,007,870 |
| 2,010,000 |
| Ref. Sub. Series 2005-C, 5.00%, 1/1/22 |
| 1,859,029 |
| 1,750,000 |
| Sub. Series 2007-B, 5.00%, 1/1/25 |
| 1,600,322 |
|
|
|
|
| |
|
|
|
|
| 4,559,667 |
|
|
|
|
| |
| Utility (5.2%) |
|
| ||
| 1,000,000 |
| Chaska Elec. Rev. Ref. Series 2005-A (Generating Facs. Proj.), 5.25%, 10/1/25 |
| 959,820 |
| 200,000 |
| Delano Wtr. & Pwr. Cmnty. Elec. Rev. Series 2000-A, 5.30%, 12/1/09 |
| 200,214 |
|
|
| Laurentian Energy Auth. MN Cogeneration Rev. Series 2005-A: |
|
|
| 650,000 |
| 4.00%, 12/1/08 |
| 649,629 |
| 965,000 |
| 4.00%, 12/1/09 |
| 960,310 |
|
|
| MN Muni Pwr. Agy. Elec. Rev.: |
|
|
| 2,000,000 |
| Series 2004-A, 5.25%, 10/1/24 |
| 1,900,300 |
|
|
| Series 2005: |
|
|
| 1,000,000 |
| 5.00%, 10/1/30 |
| 906,460 |
| 4,465,000 |
| 5.00%, 10/1/35 |
| 3,931,031 |
| 700,000 |
| Series 2007, 5.25%, 10/1/27 |
| 657,552 |
|
|
| North Branch Elec. Sys. Rev. Series 2008-B: |
|
|
| 250,000 |
| 5.00%, 8/1/22 |
| 230,908 |
| 500,000 |
| 5.75%, 8/1/28 |
| 460,565 |
| 300,000 |
| Princeton Public Utility Sys. Rev. Series 2004, 5.00%, 4/1/24 |
| 265,014 |
| 1,250,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 |
| 843,750 |
| 2,000,000 |
| Puerto Rico Elec. Pwr. Auth. Rev. Series 2005-RR, 5.00%, 7/1/22 |
| 1,828,340 |
| 125,000 |
| Virgin Islands Pub. Fin. Auth. Sr. Lien Rev. Series 2004-A, 5.25%, 10/1/21 |
| 115,874 |
| 780,000 |
| Virgin Islands Water & Power Auth. Water Sys. Rev. Ref. Series 1998, 5.50%, 7/1/17 |
| 760,906 |
|
|
|
|
| |
|
|
|
|
| 14,670,673 |
|
|
|
|
| |
| Other Revenue Bonds (9.1%) |
|
| ||
| 830,000 |
| Brooklyn Park Econ. Dev. Auth. Tax Increment Rev. Series 2007-A (Huntington Site Dev. Proj.), |
|
|
|
|
| 5.00%, 2/1/10 |
| 841,612 |
|
|
| Columbia Heights Econ. Dev. Auth. Tax Increment Rev. Series 2007 (Huset Park Area Redev. Proj.): |
|
|
| 295,000 |
| 5.00%, 2/15/17 |
| 266,919 |
| 510,000 |
| 5.20%, 2/15/22 |
| 430,986 |
| 900,000 |
| Commissioner of Iron Range Resources and Rehab. Gross Rev. (Giant’s Ridge Rec. Area Proj.), |
|
|
|
|
| Series 2000, 7.25%, 11/1/16 |
| 931,131 |
| 763,440 |
| Crystal Governmental Fac. Rev. Series 2006, 5.095%, 12/15/26 |
| 634,861 |
|
|
| Lakeville Liquor Rev. Series 2007: |
|
|
| 145,000 |
| 5.00%, 2/1/11 |
| 145,625 |
| 190,000 |
| 5.00%, 2/1/17 |
| 180,169 |
| 210,000 |
| 5.00%, 2/1/22 |
| 186,293 |
| 230,000 |
| McLeod Co. Commercial Dev. Rev. Series 2005 (Southwest MN Foundation Proj.), 5.125%, 12/1/31 |
| 197,775 |
See accompanying notes to portfolios of investments on page 52. 49
|
|
|
|
|
| Sit Minnesota Tax-Free Income Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quantity ($) |
| Name of Issuer | Market Value ($)(1) | |
|
|
| Minneapolis Cmty. Dev. Agy. Ltd. Tax Common Bond Fund: |
|
|
| 110,000 |
| Series 1996-1 (LOC-U.S. Bank), 6.00%, 6/1/11 |
| 110,431 |
| 500,000 |
| Series 1999-IA (Discount Steel), 5.25%, 6/1/19 (4) |
| 467,800 |
| 160,000 |
| Series 2000-G2 (LOC-U.S. Bank), 6.00%, 12/1/20 |
| 161,640 |
|
|
| Minneapolis Tax Increment Rev. Refunding Series 2007 (East River/Unocal Site Proj.): |
|
|
| 165,000 |
| 4.80%, 2/1/12 |
| 160,154 |
| 245,000 |
| 5.10%, 2/1/17 |
| 222,639 |
| 240,000 |
| 5.20%, 2/1/21 |
| 205,346 |
|
|
| Minneapolis Tax Increment Rev. Refunding Series 2004 (St. Anthony Falls Proj.): |
|
|
| 600,000 |
| 4.50%, 2/1/13 |
| 568,008 |
| 75,000 |
| 4.40%, 2/1/09 |
| 74,950 |
| 100,000 |
| 4.50%, 2/1/10 |
| 99,381 |
| 100,000 |
| 4.60%, 2/1/11 |
| 98,388 |
| 125,000 |
| 4.70%, 2/1/12 |
| 121,057 |
| 125,000 |
| 4.80%, 2/1/13 |
| 120,036 |
| 600,000 |
| Minneapolis Tax Increment Rev. Series 2006 (Grant Park Proj.), 5.00%, 2/1/16 |
| 567,486 |
|
|
| Mound Hsg. & Redev. Auth. Tax Increment Rev. Ref. Series 2006 (Metroplaines Proj.): |
|
|
| 220,000 | �� | 4.25%, 8/15/11 |
| 219,602 |
| 1,205,000 |
| 5.00%, 2/15/27 |
| 1,009,838 |
|
|
| St. Anthony Hsg. & Redev. Auth. Tax Increment Rev. Series 2007 (Silver Lake Vlg. Phase 1A Proj.): |
|
|
| 500,000 |
| 4.75%, 2/1/17 |
| 447,295 |
| 500,000 |
| 4.90%, 2/1/22 |
| 413,830 |
|
|
| St. Paul Hsg. & Redev. Auth. Rev. Series 2008 (Jimmy Lee Rec. Ctr. Proj.): |
|
|
| 500,000 |
| 4.75%, 12/1/26 |
| 445,395 |
| 500,000 |
| 5.00%, 12/1/32 |
| 454,340 |
|
|
| St. Paul Hsg. & Redev. Auth. Tax Increment Rev.: |
|
|
| 155,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 5.40%, 8/1/09 |
| 156,097 |
| 100,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 5.70%, 8/1/12 |
| 100,954 |
| 800,000 |
| Series 2001 (US Bank Operations Ctr. Proj.), 6.125%, 8/1/19 |
| 795,232 |
| 1,099,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 2), 7.00%, 2/15/28 |
| 1,101,451 |
| 984,000 |
| Series 2002 (North Quadrant Owner Occupied Proj. Phase 1),7.50%, 2/15/28 |
| 994,106 |
| 3,000,000 |
| Series 2002-A (Upper Landing Proj.), 6.80%, 3/1/29 |
| 2,946,570 |
| 1,962,000 |
| Series 2002-B-2 (Upper Landing Proj.), 6.90%, 3/1/29 |
| 1,948,698 |
| 1,182,000 |
| Series 2002 (Drake Marble Proj.), 6.75%, 3/1/28 |
| 1,152,627 |
| 1,249,000 |
| Series 2004 (9th St. Lofts Proj.), 6.375%, 2/15/28 |
| 1,153,714 |
|
|
| St. Paul Port Auth. Lease Rev. Series 2007-1 (Regions Hosp. Parking Ramp Proj.): |
|
|
| 155,000 |
| 5.00%, 8/1/09 |
| 154,064 |
| 200,000 |
| 5.00%, 8/1/10 |
| 197,304 |
| 390,000 |
| 5.00%, 8/1/11 |
| 381,323 |
| 805,000 |
| 5.00%, 8/1/21 |
| 671,829 |
| 2,150,000 |
| 5.00%, 8/1/36 |
| 1,607,147 |
| 715,000 |
| St. Paul Recreational Facs. Gross Rev. Series 2005 (Highland National Proj.), 5.00%, 10/1/25 |
| 678,106 |
|
|
| Steele Co. Hlth. Care Fac. Gross Rev. Refunding Crossover Series 2005-B: |
|
|
| 475,000 |
| 4.65%, 6/1/20 |
| 429,714 |
| 300,000 |
| 5.00%, 6/1/30 |
| 255,471 |
| 85,000 |
| Steele Co. Hlth. Care Fac. Gross Rev. Unref. Bal. Series 2000 (Elderly Housing Proj.), 6.625%, 6/1/20 |
| 86,351 |
| 620,000 |
| Steele Co. Hlth. Care Fac. Gross. Rev. Prerefunded Series 2000 (Elderly Hsg. Proj.), 6.625%, 6/1/20 |
| 653,759 |
| 265,000 |
| Virgin Islands Public Fin. Auth. Rev. Gross Receipts Taxes Loan Series 1999-A, 5.625%, 10/1/10 |
| 269,759 |
|
|
|
|
| |
|
|
|
|
| 25,517,263 |
|
|
|
|
| |
| |||||
Total municipal bonds (cost: $293,104,596) |
| 269,469,632 | |||
|
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Market Value ($)(1) | |
Closed-End Mutual Funds (0.8%) (2) |
|
|
| ||
10,900 |
| Delaware Investments Minnesota Municipal Income Fund II |
|
| 127,421 |
44,100 |
| First American Minnesota Municipal Income Fund II |
|
| 524,790 |
124,000 |
| MN Municipal Income Portfolio |
|
| 1,488,000 |
|
|
|
| ||
| |||||
Total closed-end mutual funds (cost: $2,389,307) |
|
| 2,140,211 | ||
|
|
|
| ||
| |||||
Short-Term Securities (1.9%) (2) |
|
|
| ||
5,252,692 |
| Wells Fargo Minnesota Municipal Cash Fund, 5.71% |
|
| 5,252,692 |
|
|
|
| ||
| |||||
Total Short-Term Securities (cost: $5,252,692) |
|
|
| ||
|
|
|
| ||
Total investments in securities (cost: $300,746,595) (6) |
| $ | 276,862,535 | ||
|
|
See accompanying notes to portfolios of investments on page 52. 51
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 September 30, 2008, 1.1% 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 September 30, 2008, 12.5% 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 September 30, 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 |
| $ | 65,081,763 |
| $ | 352,792,381 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
Gross unrealized appreciation |
|
| — |
| $ | 3,303,106 |
|
Gross unrealized depreciation |
|
| — |
|
| (3,252,209 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
|
| — |
| $ | 50,897 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota |
| ||
|
|
|
| ||||
Cost for federal income tax purposes |
| $ | 265,614,196 |
| $ | 300,746,595 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 141,945 |
| $ | 612,346 |
|
Gross unrealized depreciation |
|
| (37,815,163 | ) |
| (24,496,406 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| ($ | 37,673,218 | ) | ($ | 23,884,060 | ) |
|
|
|
|
|
|
|
| (7) | These securities have been identified by the investment adviser as illiquid securities. The aggregate value of these securities at September 30, 2008, is $2,194,052, $2,578,436 and $518,000 in the Money Market, Tax-Free Income and Minnesota Tax-Free Income Funds respectively, which represents 3.4%, 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. |
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
This page has been left blank intentionally.
53
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money |
| U.S. |
| ||
|
|
|
| ||||
ASSETS |
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 65,081,763 |
| $ | 352,792,381 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 65,081,763 |
| $ | 352,843,278 |
|
Cash in bank on demand deposit |
|
| 183,132 |
|
| — |
|
Accrued interest and dividends receivable |
|
| 121,069 |
|
| 2,684,638 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
Receivable for principal paydowns |
|
| — |
|
| 78,832 |
|
Other receivables |
|
| 1,481 |
|
| — |
|
Receivable for Fund shares sold |
|
| — |
|
| 5,335,871 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total assets |
|
| 65,387,445 |
|
| 360,942,619 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| 7,759,940 |
|
Payable for investment securities purchased - when issued (note 1) |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
| 101,356 |
|
Cash portion of dividends payable to shareholders |
|
| 111,408 |
|
| 1,402,124 |
|
Other payables |
|
| — |
|
| 1,780 |
|
Accrued investment management and advisory services fee |
|
| 29,975 |
|
| 207,633 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total liabilities |
|
| 141,383 |
|
| 9,472,833 |
|
|
|
|
| ||||
Net assets applicable to outstanding capital stock |
| $ | 65,246,062 |
| $ | 351,469,786 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 65,246,062 |
| $ | 353,195,691 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| — |
|
| (1,776,802 | ) |
Unrealized appreciation (depreciation) on investments |
|
| — |
|
| 50,897 |
|
|
|
|
| ||||
|
| $ | 65,246,062 |
| $ | 351,469,786 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Outstanding shares |
|
| 65,249,534 |
|
| 32,688,528 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 1.00 |
| $ | 10.75 |
|
|
|
|
|
54
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota |
| ||
|
|
|
| ||||
ASSETS |
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 265,614,196 |
| $ | 300,746,595 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 227,940,978 |
| $ | 276,862,535 |
|
Cash in bank on demand deposit |
|
| — |
|
| 980,122 |
|
Accrued interest and dividends receivable |
|
| 3,581,457 |
|
| 4,508,216 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
Receivable for principal paydowns |
|
| — |
|
| — |
|
Other receivables |
|
| 29,479 |
|
| 1,194 |
|
Receivable for Fund shares sold |
|
| — |
|
| 5,500 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total assets |
|
| 231,551,914 |
|
| 282,357,567 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| 356,974 |
|
| — |
|
Payable for investment securities purchased - when issued (note 1) |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| — |
|
Payable for Fund shares redeemed |
|
| 279,228 |
|
| 4,200 |
|
Cash portion of dividends payable to shareholders |
|
| 990,377 |
|
| 1,128,785 |
|
Other payables |
|
| 12,475 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 173,202 |
|
| 192,380 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total liabilities |
|
| 1,812,256 |
|
| 1,325,365 |
|
|
|
|
| ||||
Net assets applicable to outstanding capital stock |
| $ | 229,739,658 |
| $ | 281,032,202 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 302,835,471 |
| $ | 314,543,689 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| (35,422,596 | ) |
| (9,627,426 | ) |
Unrealized appreciation (depreciation) on investments |
|
| (37,673,217 | ) |
| (23,884,061 | ) |
|
|
|
| ||||
|
| $ | 229,739,658 |
| $ | 281,032,202 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Outstanding shares |
|
| 26,565,869 |
|
| 30,285,789 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 8.65 |
| $ | 9.28 |
|
|
|
|
|
See accompanying notes to financial statements on pages 60-65. 55
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Six Months Ended September 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money |
| U.S. |
| ||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
Interest |
| $ | 970,655 |
| $ | 7,848,069 |
|
|
|
|
| ||||
Total income |
|
| 970,655 |
|
| 7,848,069 |
|
|
|
|
| ||||
Expenses (note 3): |
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 276,137 |
|
| 1,168,274 |
|
Less fees and expenses absorbed by investment adviser |
|
| (87,804 | ) |
| (50,137 | ) |
|
|
|
| ||||
Total net expenses |
|
| 188,333 |
|
| 1,118,137 |
|
|
|
|
| ||||
Net investment income |
|
| 782,322 |
|
| 6,729,932 |
|
|
|
|
| ||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| — |
|
| 1,656,538 |
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| — |
|
| (6,080,146 | ) |
|
|
|
| ||||
Net gain (loss) on investments |
|
| — |
|
| (4,423,608 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
| $ | 782,322 |
| $ | 2,306,324 |
|
|
|
|
|
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota |
| ||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
Interest |
| $ | 8,011,534 |
| $ | 7,666,386 |
|
|
|
|
| ||||
Total income |
|
| 8,011,534 |
|
| 7,666,386 |
|
|
|
|
| ||||
Expenses (note 3): |
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 1,267,694 |
|
| 1,198,169 |
|
Less fees and expenses absorbed by investment adviser |
|
| (33,366 | ) |
| — |
|
|
|
|
| ||||
Total net expenses |
|
| 1,234,328 |
|
| 1,198,169 |
|
|
|
|
| ||||
Net investment income |
|
| 6,777,206 |
|
| 6,468,217 |
|
|
|
|
| ||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (3,263,618 | ) |
| (444,894 | ) |
Net change in unrealized appreciation (or depreciation) on investments |
|
| (11,520,480 | ) |
| (14,198,924 | ) |
|
|
|
| ||||
Net gain (loss) on investments |
|
| (14,784,098 | ) |
| (14,643,818 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
| ($ | 8,006,892 | ) | ($ | 8,175,601 | ) |
|
|
|
|
|
|
See accompanying notes to financial statements on pages 60-65. | 57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Money Market |
| U.S. Government |
| ||||||||
|
|
|
| ||||||||||
|
| Six Months |
| Year Ended |
| Six Months |
| Year Ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 782,322 |
| $ | 2,814,229 |
| $ | 6,729,932 |
| $ | 9,827,951 |
|
Net realized gain (loss) on investments |
|
| — |
|
| — |
|
| 1,656,538 |
|
| 149,773 |
|
Net change in unrealized appreciation (depreciation) of investments |
|
| — |
|
| — |
|
| (6,080,146 | ) |
| 7,284,028 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| 782,322 |
|
| 2,814,229 |
|
| 2,306,324 |
|
| 17,261,752 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (782,322 | ) |
| (2,814,229 | ) |
| (6,729,932 | ) |
| (9,827,951 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (782,322 | ) |
| (2,814,229 | ) |
| (6,729,932 | ) |
| (9,827,951 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 130,090,332 |
|
| 308,100,622 |
|
| 154,449,423 |
|
| 99,963,980 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 437,718 |
|
| 1,648,171 |
|
| 6,018,640 |
|
| 9,526,214 |
|
Payments for shares redeemed |
|
| (136,923,664 | ) |
| (290,622,893 | ) |
| (59,251,725 | ) |
| (60,625,032 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital share transactions |
|
| (6,395,614 | ) |
| 19,125,900 |
|
| 101,216,338 |
|
| 48,865,162 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| (6,395,614 | ) |
| 19,125,900 |
|
| 96,792,730 |
|
| 56,298,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 71,641,676 |
|
| 52,515,776 |
|
| 254,677,056 |
|
| 198,378,093 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 65,246,062 |
| $ | 71,641,676 |
| $ | 351,469,786 |
| $ | 254,677,056 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 130,090,332 |
|
| 308,100,622 |
|
| 14,309,368 |
|
| 9,322,328 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 437,718 |
|
| 1,648,171 |
|
| 557,694 |
|
| 896,508 |
|
Redeemed |
|
| (136,923,664 | ) |
| (290,622,893 | ) |
| (5,494,078 | ) |
| (5,695,620 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| (6,395,614 | ) |
| 19,125,900 |
|
| 9,372,984 |
|
| 4,523,216 |
|
|
|
|
|
|
|
58
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax-Free |
| Minnesota Tax-Free |
| ||||||||
|
|
|
| ||||||||||
|
| Six Months |
| Year Ended |
| Six Months |
| Year Ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
| $ | 6,777,206 |
| $ | 15,574,382 |
| $ | 6,468,217 |
| $ | 12,914,974 |
|
Net realized gain (loss) on investments |
|
| (3,263,618 | ) |
| (3,652,467 | ) |
| (444,894 | ) |
| 423,518 |
|
Net change in unrealized appreciation (depreciation) of investments |
|
| (11,520,480 | ) |
| (17,246,766 | ) |
| (14,198,924 | ) |
| (13,975,077 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| (8,006,892 | ) |
| (5,324,851 | ) |
| (8,175,601 | ) |
| (636,585 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (6,777,206 | ) |
| (15,574,382 | ) |
| (6,468,217 | ) |
| (12,914,974 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (6,777,206 | ) |
| (15,574,382 | ) |
| (6,468,217 | ) |
| (12,914,974 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 37,729,387 |
|
| 105,291,583 |
|
| 41,122,011 |
|
| 132,073,267 |
|
Fund merger (note 4) |
|
| — |
|
| 2,508,485 |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 6,152,539 |
|
| 13,814,892 |
|
| 5,298,113 |
|
| 10,487,814 |
|
Payments for shares redeemed |
|
| (121,948,457 | ) |
| (155,674,585 | ) |
| (58,481,882 | ) |
| (110,193,270 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital share transactions |
|
| (78,066,531 | ) |
| (34,059,625 | ) |
| (12,061,758 | ) |
| 32,367,811 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| (92,850,629 | ) |
| (54,958,858 | ) |
| (26,705,576 | ) |
| 18,816,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 322,590,287 |
|
| 377,549,145 |
|
| 307,737,778 |
|
| 288,921,526 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 229,739,658 |
| $ | 322,590,287 |
| $ | 281,032,202 |
| $ | 307,737,778 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 4,112,204 |
|
| 11,077,703 |
|
| 4,218,940 |
|
| 13,204,246 |
|
Fund merger (note 4) |
|
| — |
|
| 260,940 |
|
| — |
|
| — |
|
Reinvested distributions |
|
| 671,492 |
|
| 1,452,580 |
|
| 542,884 |
|
| 1,047,399 |
|
Redeemed |
|
| (13,423,563 | ) |
| (16,413,251 | ) |
| (5,992,373 | ) |
| (11,025,230 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| (8,639,867 | ) |
| (3,622,028 | ) |
| (1,230,549 | ) |
| 3,226,415 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on pages 60-65. | 59 |
|
|
|
|
|
| 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, consistent with the preservation of capital. |
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). |
|
|
| Delivery and payment for securities which have been purchased by the Funds on a forward commitment or when- |
60
|
|
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|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
| 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. |
|
|
| Fair Value Measurement |
| The Funds adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157), effective April 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Funds’ investments. The hierarchy of inputs is summarized below: |
|
|
| Level 1 – quoted prices in active markets for identical investments. |
| Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
|
|
| The following is a summary of the inputs used in valuing the Funds’ assets carried at fair value on September 30, 2008: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in Securities at Value |
|
|
| |||||||||
|
|
|
|
|
| |||||||||
Fund |
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
| |||||
Money Market |
|
| — |
|
| $ | 65,081,763 |
|
| — |
| $ | 65,081,763 |
|
U.S. Government Securities |
| $ | 317,962,287 |
|
|
| 34,880,991 |
|
| — |
| $ | 352,843,278 |
|
Tax-Free Income |
|
| 227,940,978 |
|
|
| — |
|
| — |
| $ | 227,940,978 |
|
MN Tax-Free Income |
|
| 276,862,535 |
|
|
| — |
|
| — |
| $ | 276,862,535 |
|
|
|
| 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 period ended September 30, 2008. |
61
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Notes to Financial Statements (continued) |
|
|
|
|
|
|
|
|
|
|
| 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 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 |
|
(*) 100% of dividends were derived from interest on tax-exempt securities. | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
(*) 100% of dividends were derived from interest on tax-exempt securities. |
62
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
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). |
|
|
| 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 |
|
|
|
| Distributions |
| Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds’ capital stock. Distributions from net investment income are declared daily and paid monthly for the Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds. |
|
|
| 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. |
63
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(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 period ended September 30, 2008, were as follows: |
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
|
U.S. Government Securities Fund |
| 169,414,593 |
| 88,207,860 |
|
Tax-Free Income Fund |
| 36,865,517 |
| 119,851,465 |
|
Minnesota Tax-Free Income Fund |
| 20,388,745 |
| 31,998,405 |
|
|
|
| For the Money Market Fund during the period ended September 30, 2008 purchases of and proceeds from sales and maturities of investment securities aggregated $745,123,191 and $752,471,086, respectively. |
|
|
(3) | Expenses |
|
|
| Investment Adviser |
|
|
| The Funds each have entered into an investment management agreement with Sit Investment Associates Inc. (SIA), under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. SIA also is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, and other transaction charges relating to investing activities). The fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of: |
|
|
|
|
| Average Daily Net Assets |
Tax-Free Income Fund |
| .80% |
Minnesota Tax-Free Income Fund |
| .80% |
|
|
|
|
|
|
|
|
| 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 flat monthly fee (and, thereby, all Fund expenses, except extraordinary expenses, interest, brokerage commissions and other transaction charges not payable by the Adviser) paid by the Tax-Free Income Fund to an annual rate 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. |
64
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
| For the period October 1, 1993, through December 31, 2008, the Adviser has voluntarily agreed to limit the flat monthly fee (and, thereby, all Fund expenses, except extraordinary expenses, interest, brokerage commissions and other transaction charges not payable by the Adviser) paid by the U.S. Government Securities Fund and Money Market Fund to an annual rate of .80% and .50%, respectively of the Fund’s average daily net assets. After December 31, 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 September 30, 2008: |
|
|
|
|
|
|
|
| Shares |
| % Shares Outstanding | |||
Money Market Fund |
| 34,470,493 |
|
| 52.8 | (*) |
U.S. Government Securities Fund |
| 615,141 |
|
| 1.9 |
|
Tax-Free Income Fund |
| 1,405,130 |
|
| 5.3 |
|
MN Tax-Free Income Fund |
| 2,318,981 |
|
| 7.7 |
|
(*) 46.6% 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 ($2,533,478), Undistributed net investment income ($250), Accumulated net realized loss ($19,027), and Unrealized depreciation ($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. |
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Money Market Fund |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
| |||||||||||
|
|
| Years Ended March 31, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| 0.01 |
|
| 0.04 |
|
| 0.05 |
|
| 0.03 |
|
| 0.01 |
|
Total from operations |
|
| 0.01 |
|
| 0.04 |
|
| 0.05 |
|
| 0.03 |
|
| 0.01 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (0.01 | ) |
| (0.04 | ) |
| (0.05 | ) |
| (0.03 | ) |
| (0.01 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
| $ | 1.00 |
|
Total investment return (2) |
|
| 1.05 | % |
| 4.43 | % |
| 4.80 | % |
| 3.28 | % |
| 1.24 | % |
Net assets at end of period (000’s omitted) |
| $ | 65,246 |
| $ | 71,642 |
| $ | 52,516 |
| $ | 69,682 |
| $ | 38,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) |
|
| 0.74 | % |
| 0.75 | % |
| 0.75 | % |
| 0.76 | % |
| 0.80 | % |
Expenses (with waiver) |
|
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
| 0.50 | % |
Net investment income (without waiver) |
|
| 1.84 | % |
| 4.02 | % |
| 4.45 | % |
| 3.09 | % |
| 0.92 | % |
Net investment income (with waiver) |
|
| 2.08 | % |
| 4.27 | % |
| 4.70 | % |
| 3.35 | % |
| 1.22 | % |
|
|
|
|
|
|
(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 September 30, 2008 are adjusted to an annual rate. 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. |
66
|
|
|
|
|
| Sit U.S. Government Securities Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Years Ended March 31, |
| ||||||||||||
|
|
| ||||||||||||||
|
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.92 |
| $ | 10.56 |
| $ | 10.45 |
| $ | 10.62 |
| $ | 10.79 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .26 |
|
| .50 |
|
| .48 |
|
| .43 |
|
| .38 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.17 | ) |
| .36 |
|
| .11 |
|
| (.17 | ) |
| (.17 | ) |
Total from operations |
|
| .09 |
|
| .86 |
|
| .59 |
|
| .26 |
|
| .21 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.26 | ) |
| (.50 | ) |
| (.48 | ) |
| (.43 | ) |
| (.38 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total Distributions |
|
| (.26 | ) |
| (.50 | ) |
| (.48 | ) |
| (.43 | ) |
| (.38 | ) |
Net Asset Value: |
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End of period |
| $ | 10.75 |
| $ | 10.92 |
| $ | 10.56 |
| $ | 10.45 |
| $ | 10.62 |
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Total investment return (2) |
|
| 0.81 | % |
| 8.37 | % |
| 5.81 | % |
| 2.45 | % |
| 1.93 | % |
Net assets at end of period (000’s omitted) |
| $ | 351,470 |
| $ | 254,677 |
| $ | 198,378 |
| $ | 234,395 |
| $ | 258,410 |
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Ratios (3): |
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Expenses (without waiver) (4) |
|
| 0.84 | % |
| 0.85 | % |
| 0.85 | % |
| 0.84 | % |
| 0.84 | % |
Expenses (with waiver) (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Net investment income (without waiver) |
|
| 4.77 | % |
| 4.61 | % |
| 4.56 | % |
| 3.99 | % |
| 3.47 | % |
Net investment income (with waiver) |
|
| 4.81 | % |
| 4.66 | % |
| 4.61 | % |
| 4.03 | % |
| 3.51 | % |
| ||||||||||||||||
Portfolio turnover rate (excluding short-term securities) |
|
| 33.85 | % |
| 67.42 | % |
| 43.98 | % |
| 60.37 | % |
| 36.64 | % |
|
|
|
|
(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 September 30, 2008 are adjusted to an annual rate. 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. |
|
|
(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. |
67
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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 |
| 2007 |
| 2006 |
| 2005 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 9.16 |
| $ | 9.72 |
| $ | 9.72 |
| $ | 9.77 |
| $ | 9.90 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .20 |
|
| .40 |
|
| .38 |
|
| .37 |
|
| .38 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.51 | ) |
| (.56 | ) |
| .00 |
|
| (.05 | ) |
| (.13 | ) |
Total from operations |
|
| (.31 | ) |
| (.16 | ) |
| .38 |
|
| .32 |
|
| .25 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.20 | ) |
| (.40 | ) |
| (.38 | ) |
| (.37 | ) |
| (.38 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.20 | ) |
| (.40 | ) |
| (.38 | ) |
| (.37 | ) |
| (.38 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 8.65 |
| $ | 9.16 |
| $ | 9.72 |
| $ | 9.72 |
| $ | 9.77 |
|
Total investment return (2) |
|
| (3.51 | %) |
| (1.72 | %) |
| 4.00 | % |
| 3.35 | % |
| 2.54 | % |
Net assets at end of period (000’s omitted) |
| $ | 229,740 |
| $ | 322,590 |
| $ | 377,549 |
| $ | 366,948 |
| $ | 353,868 |
|
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|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Expenses (with waiver) (4) |
|
| 0.78 | % |
| 0.77 | % |
| 0.77 | % |
| 0.77 | % |
| 0.77 | % |
Net investment income (without waiver) |
|
| 4.26 | % |
| 4.15 | % |
| 3.90 | % |
| 3.78 | % |
| 3.81 | % |
Net investment income (with waiver) |
|
| 4.28 | % |
| 4.18 | % |
| 3.93 | % |
| 3.81 | % |
| 3.84 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 14.55 | % |
| 42.93 | % |
| 50.67 | % |
| 32.93 | % |
| 41.29 | % |
|
|
|
|
| |
(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 September 30, 2008 are adjusted to an annual rate. 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. |
68
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| |
| Sit Minnesota Tax-Free Income Fund |
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| Financial Highlights |
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| Six Months |
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| |||||||||||
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| ||||||||||||
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| Years Ended March 31, |
| ||||||||||||
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| ||||||||||||||
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 9.76 |
| $ | 10.21 |
| $ | 10.12 |
| $ | 10.09 |
| $ | 10.26 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .21 |
|
| .43 |
|
| .42 |
|
| .41 |
|
| .44 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.48 | ) |
| (.45 | ) |
| .09 |
|
| .03 |
|
| (.17 | ) |
Total from operations |
|
| (.27 | ) |
| (.02 | ) |
| .51 |
|
| .44 |
|
| .27 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.21 | ) |
| (.43 | ) |
| (.42 | ) |
| (.41 | ) |
| (.44 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 9.28 |
| $ | 9.76 |
| $ | 10.21 |
| $ | 10.12 |
| $ | 10.09 |
|
Total investment return (2) |
|
| (2.82 | %) |
| (0.25 | %) |
| 5.17 | % |
| 4.46 | % |
| 2.69 | % |
Net assets at end of period (000’s omitted) |
| $ | 281,032 |
| $ | 307,738 |
| $ | 288,922 |
| $ | 263,312 |
| $ | 233,034 |
|
| ||||||||||||||||
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (4) |
|
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
| 0.80 | % |
Net investment income |
|
| 4.32 | % |
| 4.25 | % |
| 4.17 | % |
| 4.07 | % |
| 4.33 | % |
| ||||||||||||||||
Portfolio turnover rate (excluding short-term securities) |
| 7.11 | % |
| 37.48 | % |
| 28.42 | % |
| 54.91 | % |
| 29.33 | % |
|
|
|
|
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period |
|
|
(3) | Percentages for the period ended September 30, 2008 are adjusted to an annual rate. 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. |
69
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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 April 1, 2008 to September 30,2008.
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 | $1,010.50 | $2.51 |
Hypothetical (5% return before expenses) | $1,000 | $1,022.50 | $2.52 |
* Expenses are equal to the Fund’s annualized expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period.)
70
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U.S. Government Securities Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $1,008.10 | $4.01 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.00 | $4.03 |
* Expenses are equal to the Fund’s annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period.)
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Tax-Free Income Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $ 964.90 | $3.82 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.10 | $3.93 |
* Expenses are equal to the Fund’s annualized expense ratio of 0.78%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period.)
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Minnesota Tax-Free Income Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000 | $ 971.80 | $3.93 |
Hypothetical (5% return before expenses) | $1,000 | $1,021.10 | $4.03 |
* Expenses are equal to the Fund’s annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period.)
71
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| Sit Mutual Funds |
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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 September 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 l-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.
72
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 $7.3 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of 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
S E M I - A N N U A L R E P O R T B O N D F U N D S
Six Months Ended September 30, 2008
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INVESTMENT ADVISER | INDEPENDENT REGISTERED PUBLIC |
Sit Mutual Funds
High Income Municipal Bond Fund
Semi-Annual Report
September 30, 2008
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Sit Mutual Funds
HIGH INCOME MUNICIPAL BOND FUND SEMI-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 |
As published in the Semi-Annual Report of the Sit Bond Funds |
Dear Fellow Shareholders:
Global capital markets saw a dramatic “flight to quality” in September, as the U.S. financial crisis worsened and the economy showed further weakness. What began as a sub-prime lending debacle in the U.S. in the third quarter of 2007 has mushroomed into a global financial crisis and economic slowdown. The failure or near-failure of several major financial institutions due to unanticipated loss exposure in subprime loans and credit default swaps has resulted in government intervention on several levels, as well as quick marriages among financial institutions seeking additional capital. Resulting erosion in investor confidence caused Treasury yields to move sharply lower, while other financial asset classes saw a severe liquidity crisis. The quest for quality pushed 3-month Treasury bill yields to less than 0.10% in mid-September. Other fixed-income markets saw price declines as credit spreads (versus Treasuries) widened to record levels for corporate and high yield securities. Municipals, despite seeing few direct downgrades on underlying issuer ratings, continued to be roiled by ratings downgrades on the monoline bond insurers, which insure nearly half of all tax-exempt bonds outstanding, and on the financial institutions serving as counterparties or liquidity providers. Financial markets continued to be volatile in October, reflecting concerns over whether government actions to address the global financial crisis will be successful and on increasing recession fears.
Policy responses to this crisis over the past 14 months by the U.S. government and the Federal Reserve, have been unprecedented. In a series of nine moves since September 2007, the federal funds rate has been cut 425 basis points to 1.0% on October 29th in efforts to promote lending. The Fed has created and expanded a virtual alphabet soup of lending facilities to provide liquidity (e.g., TAF, TSLF, PDCF, CPFF) and has led the way to coordinated central bank actions. The Economic Stimulus Act of 2008 has provided stimulus in the way of tax rebates and bonus depreciation. Additionally, the federal government has provided support for the housing sector, financial markets and institutions via the Housing and Economic Recovery Act of 2008 passed in August; intervention on Bear Stearns and AIG in March and September, respectively; and the Troubled Asset Relief Program (TARP), which was signed into law on October 3rd. The $700 billion TARP, which included $149 billion in various unrelated tax breaks to garner House votes, represents the largest intervention by the government in the U.S. economy in history. Under the program, the Treasury Department will be able to buy troubled assets from financial institutions reeling from the subprime mortgage debacle. To add further reassurance, the bill also temporarily raises federal deposit insurance limits to $250,000 from $100,000 and suspends mark-to-market accounting rules for valuing assets. As it will take time for these programs to be fully implemented, the TARP will probably not be the last government intervention. Further actions
may be seen in the form of an additional stimulus package, perhaps in the form of tax credits to individuals or the extension of unemployment benefits.
The preliminary estimate of U.S. third quarter 2008 real GDP growth was reported at - -0.3%, compared to +0.9% in the first quarter and +2.8% in the second quarter. This was the largest decline in economic activity since the third quarter of 2001. Consumer spending, which represents 70% of GDP and had slowed to +1.0% growth in recent quarters, declined -3.1% in the third quarter. Business investment and residential construction also slowed. Employment continues to weaken, as indicated by the September payroll report which showed the largest monthly decline in jobs since March 2003. The weakness was broad-based across economic sectors. While the September unemployment rate was unchanged at 6.1%, it appears likely to move higher in coming months. Also, amid a weakening global economic outlook, business investment and exports are expected to slow. Residential investment will remain a drag on real GDP growth, but will be a smaller influence due to its diminished size.
General price inflation was tame since August, after several months of worrisome increases. On the consumer level, a sharp drop in energy prices, along with lower motor vehicle prices, helped to offset increases in food prices, pharmaceuticals and apparel and recreation. While year-over-year price increases are near cyclical highs, downward pressure is likely to continue given the weak economic outlook. The U.S. dollar has rallied in reaction to the collapse in crude oil prices (and other commodity prices) and worsening international economic prospects and has regained its traditional “safe-haven” status. We expect the U.S. dollar to continue to edge higher in the near term.
Federal deficit trends continue to worsen. The federal deficit nearly tripled in fiscal 2008 to $454.8 billion from $161.5 billion in fiscal 2007. Treasury estimates that the deficit was 3.2% of 2008 GDP, up from 1.2% in fiscal 2007. For the year, receipts fell -1.7%, while outlays rose +9.1%. Receipts from individual income taxes declined
-1.5%, primarily due to tax rebates. In addition, there was lower-than-anticipated growth in total wages and salaries and in non-wage sources of income, such as capital gains and dividends. Corporate tax receipts were down -17.8% for the year. On the other side of the ledger, there were significantly higher-than-expected outlays in Defense and Treasury (interest on inflation-adjusted securities) and in the Federal Deposit Insurance Corporation. Regarding fiscal 2009, OMB, in its July update forecasted a shortfall this year of $482 billion, prior to the subsequent bailout measures. In September, CBO projected a fiscal 2009 deficit of $438 billion, before taking into account the costs of the federal takeover of Fannie Mae and Freddie Mac. Neither agency has updated its baseline budget projections and economic assumptions to incorporate the final fiscal 2008 budget results or the latest economic data.
2
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Strategy Summary
At present, the economy is very likely in a recession. Consumer spending in the third quarter declined, despite the residual positive impact of the tax rebates on consumer spending, and, in the fourth quarter, the absence of tax rebates will actually subtract from consumer spending growth. Economic contractions can be caused by a number of factors such as a spike in energy costs, a persistent loss of jobs, a weak housing market, or a general lack of confidence expressed as a credit crunch. While past recessions have generally had one or two of these issues to contend with, it appears that we now have a fair amount of each. One of the most significant factors impacting consumer spending is the jobs market and the outlook for employment continues to weaken. Residential investment will probably be a drag on the economy for the rest of the year and into the first part of 2009, although there is likely to be continued sequential quarterly improvement. Inventories have been drawn down six of the past seven quarters and will need to be rebuilt at some point. As a result of the accelerated credit market strains and economic pressures in recent months, we expect the economy to contract during the next few quarters.
While real GDP growth will likely remain negative through the first half of 2009, we believe that policies are in place in the U.S. for an eventual economic turnaround. This contrasts with the rest of the world, which has just begun to enter the slowdown phase of their economic cycles and where central banks are only now beginning to implement policies to address their slowing economies and the financial crisis. In addition, the global slowdown has helped push crude oil and other commodity prices lower, which will ease inflationary pressures in the U.S. As a result, the U.S. economy and capital markets are attractive to investors relative to the rest of the world.
Our fixed-income investment approach remains focused on securities that provide incremental yield and stable credit outlooks. Among taxable securities, we continue to emphasize seasoned agency mortgage pass-through securities for their yield advantage and credit quality. The federal government’s placing of agency mortgage companies Fannie Mae and Freddie Mac under conservatorship in early September significantly increased the explicit degree of support provided to the agencies and their debt, including mortgage securities. In addition to offering high levels of income, we believe this sector will also benefit from an intermediate-term housing market recovery, making it a highly attractive alternative to other short term fixed-income investments.
In the municipal market, the constrained capital market access stalled most of the new issuance calendar for several weeks and even led a few municipal issuers to request federal assistance to cover possible short-term liquidity needs. The deteriorating market conditions resulted in municipal
relative yield comparisons to Treasuries quickly reaching extreme levels. In addition, credit spreads widened even further as market conditions worsened in September. While market volatility is likely to continue in the near term as the U.S. government seeks to restore confidence in financial markets, we believe that municipals offer a compelling risk/reward profile, with relative yield valuations in extreme territory and credit spreads at historically wide levels. Municipals continue to demonstrate relative credit quality stability in this extreme market environment and we believe they should withstand a recession once the liquidity crisis passes. Our strategy remains focused on finding opportunities to increase portfolio yields in sectors and securities with stable longer term credit outlooks, while employing diversification as a key tenet to managing risk.
We appreciate your continued interest and involvement in Sit Mutual Funds and look forward to assisting you in achieving your long-term investment goals.
Chairman and President
Sit Mutual Funds
3
|
Sit High Income Municipal Bond Fund |
Six Months Ended September 30, 2008 |
|
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 -4.49% total return for the six month period ended September 30, 2008 compared to a - -2.59% return for the Lehman Municipal Bond Index. As of September 30, 2008, the Fund’s 30-day SEC yield was 5.52%, up from 4.92% at March 31, 2008 and its 12-month distribution rate was 4.56%.
The municipal bond yield curve has continued to steepen considerably over the past six months, with short rates falling slightly, while long-term yields rose approximately 100 basis points. Further anticipated easing by the Fed in the fourth quarter of 2008 was primarily responsible for the reduction in short-term yields, while the credit and liquidity crunch that affected all domestic fixed-income securities other than U.S. Treasuries drove the increase in long-term yields. Further deleveraging by hedge funds in August and September and the continued failures and subsequent fixed rate reissuance 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 period. 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 ground to a halt in mid-September as the credit crisis worsened, but has begun to pick up in late October, and will likely be heavy through the remainder of 2008. While it appears that the Fed, after lowering the federal funds rate to 1.00% in October, is done for this easing cycle, the interest rate environment could remain challenging for the remainder of the year, as intermediate-term inflation concerns remain. The Fund’s net asset value was volatile during this difficult period, falling from $9.12 at March 31, 2008 to $8.51 at September 30, 2008. The Fund experienced an increase in net assets over the period to approximately $36 million, up from $23 million.
The Fund’s most significant investments during the period were in the healthcare (primarily hospitals) sector (20%), the other revenue (primarily tax increment financing and land-secured) sector (19%), multi-family housing (primarily senior living) sector (17%), and the education (primarily charter schools) sector (12%). The Fund will maintain significant weightings in these sectors going forward, but the weightings should decrease somewhat as the Fund grows and becomes more diversified. Over 200 credits (over 60% of which were rated) in thirty-eight states were held in the Fund as of September 30. The Fund’s overall credit quality has remained BBB.
We have lengthened the Fund’s average life duration to 6.3 years since its inception. That lengthening process accelerated 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 return to robust levels for lower-rated and non-rated bonds once the credit crisis passes, as after-tax yields on municipals far exceed most opportunities available in the taxable market. This market anomaly, with tax-exempt bonds yielding considerably more than comparable maturity U.S. Treasuries, should benefit the Fund’s performance once this relationship begins to normalize. The Fund will likely see a significant increase in emphasis on non-rated credits in the coming year as it grows and diversifies.
|
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.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 9/30/08: |
| $8.51 Per Share |
3/31/08: |
| $9.12 Per Share |
Total Net Assets: |
| $35.8 Million |
30-day SEC Yield: |
| 5.52% |
Tax Equivalent Yield: |
| 8.49%(1) |
12-Month Distribution Rate: |
| 4.56% |
Average Maturity: |
| 15.4 Years |
Duration to Estimated Avg. Life: |
| 6.3 Years(2) |
Implied Duration: |
| 6.5 Years(2) |
(1)For individuals in the 35.0% federal tax bracket.
(2)See next page.
|
PORTFOLIO STRUCTURE |
4
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AVERAGE ANNUAL TOTAL RETURNS* | ||||||||||||||||
|
| Three |
| Six |
| One Year |
| Three Years |
| Since |
| |||||
Sit High Income Muni Bond Fund |
| -5.65 | % |
| -4.49 | % |
| -7.67 | % |
| n/a |
|
| -4.85 | % |
|
Lehman Muni Bond Index |
| -3.21 |
|
| -2.59 |
|
| -1.86 |
|
| n/a |
|
| 0.04 |
|
|
Lehman High Yield Muni Bond Index/5 year |
| -0.87 |
|
| -1.24 |
|
| -1.46 |
|
| n/a |
|
| 0.09 |
|
|
Composite lndex(3) |
| -2.03 |
|
| -1.90 |
|
| -1.62 |
|
| n/a |
|
| 0.09 |
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CUMULATIVE TOTAL RETURNS* | ||||||||||||||||
|
| Three |
| Six |
| One Year |
| Three Years |
| Since |
| |||||
Sit High Income Muni Bond Fund |
| -5.65 | % |
| -4.49 | % |
| -7.67 | % |
| n/a |
|
| -8.34 | % |
|
Lehman Muni Bond Index |
| -3.21 |
|
| -2.59 |
|
| -1.86 |
|
| n/a |
|
| 0.07 |
|
|
Lehman High Yield Muni Bond Index/5 year |
| -0.87 |
|
| -1.24 |
|
| -1.46 |
|
| n/a |
|
| 0.16 |
|
|
Composite Index(3) |
| -2.03 |
|
| -1.90 |
|
| -1.62 |
|
| n/a |
|
| 0.16 |
|
|
*As of 9/30/08 **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 9/30/08 would have decreased to $9,166 in the Fund or grown to $10,007 in the Lehman Municipal Bond Index assuming reinvestment of all dividends and capital gains.
|
QUALITY RATINGS |
Assessment of
Non-Rated Securities
|
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|
AAA |
| 0.0 | % |
AA |
| 0.0 |
|
A |
| 1.5 |
|
BBB |
| 9.5 |
|
BB |
| 19.6 |
|
‹BB |
| 4.0 |
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Total |
| 34.6 | % |
Lower of Moody’s, S&P, Fitch or Duff & Phelps ratings used.
|
|
(2) | Duration is a measure which reflects estimated price sensitivity to a given change in interest rates. For example, for an interest rate change of 1%, a portfolio with a duration of 5 years would be expected to experience a price change of 5%. Estimated average life duration is based on current interest rates and the Adviser’s assumptions regarding the expected average life of individual securities held in the portfolio. Implied duration is calculated based on historical price changes of securities held by the Fund. The Adviser believes that the portfolio’s implied duration is a more accurate estimate of price sensitivity provided interest rates remain within their historical range. If interest rates exceed the historical range, the estimated average life duration may be a more accurate estimate of price sensitivity. |
|
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(3) | Composite Index (50% Lehman Municipal Bond Index and 50% Lehman High Yield Muni Bond Index/5 year). |
5
|
Sit High Income Municipal Bond Fund |
|
September 30, 2008 |
Portfolio of Investments (Unaudited) |
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Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
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Municipal Bonds (96.3%) (2) |
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Alabama (1.9%) |
|
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| ||
100,000 |
| Bessemer Med. Clinic Rev. (Bessemer Carraway) |
| 7.25 |
|
| 4/1/15 |
|
|
| 100,317 |
|
200,000 |
| Huntsville-Redstone Vlg. Spl. Care Facs. Auth. |
| 5.25 |
|
| 1/1/15 |
|
|
| 184,496 |
|
150,000 |
| Pell City Spl. Care. Rev. (Noland Hlth. Svcs.) |
| 5.25 |
|
| 12/1/27 |
|
|
| 122,105 |
|
260,000 |
| University of Alabama Birmingham Hosp. Rev. |
| 5.75 |
|
| 9/1/22 |
|
|
| 259,987 |
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| 666,905 |
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Alaska (2.5%) |
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250,000 |
| AK Hsg. Fin. Corp. Gen. Mtg. Rev. |
| 6.00 |
|
| 6/1/49 |
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| 251,395 |
|
250,000 |
| AK Indl. Dev. & Expt. Rev. (Boys & Girls Home) |
| 5.50 |
|
| 12/1/12 |
|
|
| 240,267 |
|
300,000 |
| Aleutians East Burough (Aleutian Pribilof Islands) |
| 5.50 |
|
| 6/1/25 |
|
|
| 254,271 |
|
150,000 |
| Matanuska-Susitna Boro COP (Animal Care) (6) |
| 5.75 |
|
| 3/1/23 |
|
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| 138,115 |
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| 884,048 |
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Arizona (4.8%) |
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100,000 |
| Apache Co. G.O. (Window Rock Sch. Impt.) |
| 5.75 |
|
| 7/1/14 |
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| 98,312 |
|
215,000 |
| Apache Co. G.O. (Window Rock Sch. Impt.) |
| 6.00 |
|
| 7/1/15 |
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| 210,433 |
|
96,638 |
| AZ Hlth. Facs. Auth. Rev. (New AZ Family) |
| 5.25 |
|
| 1/7/27 |
|
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| 85,822 |
|
250,000 |
| Flagstaff Indl. Dev. Auth. (Sr. Living Cmnty.) |
| 5.50 |
|
| 7/1/22 |
|
|
| 214,820 |
|
250,000 |
| Pima Co. Indl. Dev. Auth. (Coral Academy Science) |
| 6.38 |
|
| 12/1/18 |
|
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| 240,755 |
|
100,000 |
| Pima Co. Indl. Dev. Rev. (Academic Success) |
| 5.38 |
|
| 7/1/22 |
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| 88,614 |
|
250,000 |
| Pima Co. Indl. Rev. Ref. (Tucson Country Day Sch.) |
| 5.00 |
|
| 6/1/22 |
|
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| 212,113 |
|
235,000 |
| Pima Co. Indl. Dev. Rev. (AZ Charter Schools) |
| 6.10 |
|
| 7/1/24 |
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| 206,826 |
|
150,000 |
| Scottsdale Indl. Rev. Ref. (Scottsdale Healthcare) |
| 5.25 |
|
| 9/1/30 |
|
|
| 131,090 |
|
250,000 |
| Southside Cmnty. Spl. Assmt. Rev. (Prescott Vy.) |
| 6.13 |
|
| 7/1/18 |
|
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| 236,208 |
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| 1,724,993 |
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California (2.4%) |
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150,000 |
| CA Tob. Sec. Corp. Asset-Backed Sr. Rev. |
| 5.10 |
|
| 6/1/28 |
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| 106,432 |
|
140,000 |
| CA Statewide Cmntys. Rev. (Lancer Educ.) |
| 5.40 |
|
| 6/1/17 |
|
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| 131,757 |
|
100,000 |
| CA Statewide Cmntys. Spl. Tax Rev. (Orinda) |
| 6.00 |
|
| 9/1/29 |
|
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| 89,902 |
|
500,000 |
| Center Uni. Sch. Dist. G.O. (1991 Election) (5) |
| 6.07 |
|
| 8/1/31 |
|
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| 112,100 |
|
200,000 |
| Dinuba Fin. Auth. Lease Rev. (Measure R Road) |
| 5.10 |
|
| 9/1/22 |
|
|
| 178,300 |
|
30,000 |
| Los Angeles Regl. Arpts. Impt. Lease Rev. (6) |
| 10.25 |
|
| 1/1/13 |
|
|
| 31,927 |
|
200,000 |
| Rialto Redev. Agy. Tax Alloc. (Merged Proj.) |
| 6.25 |
|
| 9/1/37 |
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| 195,800 |
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| 846,218 |
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Colorado (5.8%) |
|
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250,000 |
| Co. H1th. Facs. Rev. Ref. (Valley View Hosp.) |
| 5.50 |
|
| 5/15/28 |
|
|
| 213,845 |
|
200,000 |
| Denver Hlth. & Hosp. Auth. Hea1thcare Rev. (4) |
| 2.98 |
|
| 12/1/33 |
|
|
| 122,000 |
|
1,000,000 |
| E-470 Pub. Hwy. Auth. Cap. Appeciation Rev. (5) |
| 6.20 |
|
| 9/1/28 |
|
|
| 269,600 |
|
150,000 |
| E-470 Pub. Hwy. Auth. Rev. |
| 5.50 |
|
| 9/1/24 |
|
|
| 140,038 |
|
300,000 |
| Fruita Rev. (Family Hlth. West) |
| 7.00 |
|
| 1/1/18 |
|
|
| 292,209 |
|
160,000 |
| Interlocken Met. Dist. Ref. G.O. |
| 5.75 |
|
| 12/15/19 |
|
|
| 146,952 |
|
250,000 |
| La Junta Hosp. Rev. (Ark Valley Regl. Med. Ctr.) |
| 6.10 |
|
| 4/1/24 |
|
|
| 240,605 |
|
250,000 |
| Park Creek Met. Dist. Ltd. Tax Sr. Rev. Ref. |
| 5.50 |
|
| 12/1/37 |
|
|
| 220,418 |
|
350,000 |
| CO Pub. Auth. For Energy Nat. Gas. Rev. |
| 5.75 |
|
| 11/15/18 |
|
|
| 308,931 |
|
150,000 |
| Walker Field Pub. Arpt. Auth Rev. |
| 4.75 |
|
| 12/1/27 |
|
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| 116,246 |
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| 2,070,844 |
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Connecticut (2.1%) |
|
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50,000 |
| CT DFA Pollution Ctr. Rev. Ref. (CT Light & Power) |
| 5.85 |
|
| 9/1/28 |
|
|
| 46,395 |
|
250,000 |
| CT H1th. & Educ. Facs. Auth. Rev. (Eastern CT) |
| 6.00 |
|
| 7/1/25 |
|
|
| 243,032 |
|
250,000 |
| Mashantucket Western Pequot Tribe Spl. Rev. |
| 5.75 |
|
| 9/1/18 |
|
|
| 224,925 |
|
400,000 |
| Mashantucket Western Pequot Tribe Sub. Spl. Rev. (5) |
| 5.55 |
|
| 9/1/16 |
|
|
| 244,376 |
|
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|
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| 758,728 |
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Florida (11.5%) |
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250,000 |
| Alachua Co. Health Facs. Rev. (Shands Hea1thcare) (4) |
| 2.75 |
|
| 12/1/37 |
|
|
| 157,500 |
|
250,000 |
| Atlantic Beach Healtcare Rev. Ref. (Fleet Landing) |
| 5.38 |
|
| 10/1/10 |
|
|
| 245,162 |
|
100,000 |
| Connerton West Cap. Impt. Spl. Assmnt. Rev. |
| 5.13 |
|
| 5/1/16 |
|
|
| 86,441 |
|
50,000 |
| Gateway Svcs. Spl. Assmt. (Sun City Ctr.) |
| 5.50 |
|
| 5/1/10 |
|
|
| 49,108 |
|
250,000 |
| Gramercy Farms Cmnty. Dev. Dist. Spl. Assmnt. |
| 5.10 |
|
| 5/1/14 |
|
|
| 193,107 |
|
220,000 |
| Heritage Landing Cmnty. Dev. Spl. Assmt. |
| 5.60 |
|
| 5/1/36 |
|
|
| 193,217 |
|
150,000 |
| Highlands Co. H1th. Facs. Rev. Ref. (Adventist) |
| 5.00 |
|
| 11/15/31 |
|
|
| 126,571 |
|
250,000 |
| Hollywood Cmnty. Redev. Agy. Rev. |
| 5.63 |
|
| 3/1/24 |
|
|
| 229,795 |
|
135,000 |
| Jacksonville Econ. Dev. Rev. (Mayo Clinic) |
| 5.50 |
|
| 11/15/36 |
|
|
| 123,992 |
|
100,000 |
| Lake Ashton II Cmnty. Dev. Dist. Cap. Impt. Rev. |
| 5.00 |
|
| 11/1/11 |
|
|
| 91,930 |
|
100,000 |
| Lakeland Retirement Cmnty. Rev. Ref. (Carpenters) |
| 5.88 |
|
| 1/1/19 |
|
|
| 93,574 |
|
250,000 |
| Lee Co. Indl. Rev. Ref. (Shell Pt/Alliance Cmnty.) |
| 5.00 |
|
| 11/15/29 |
|
|
| 190,733 |
|
250,000 |
| Lee Co. Indl. Dev. Auth. Rev. (Charter Foundation) |
| 5.25 |
|
| 6/15/27 |
|
|
| 193,055 |
|
100,000 |
| Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. |
| 5.25 |
|
| 11/1/14 |
|
|
| 85,861 |
|
250,000 |
| Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. |
| 6.90 |
|
| 5/1/17 |
|
|
| 239,087 |
|
275,000 |
| Miami Beach Hlth. Facs. Hosp. Rev. (Mt. Sinai) |
| 5.38 |
|
| 11/15/28 |
|
|
| 210,897 |
|
80,000 |
| Miami Spl. Rev. Ref. (5) |
| 6.75 |
|
| 1/1/15 |
|
|
| 54,850 |
|
400,000 |
| Palm Beach Co. H1th. Rev. (Abbey Delray South) |
| 5.50 |
|
| 10/1/11 |
|
|
| 399,116 |
|
100,000 |
| Palm Beach Co. H1th. Rev. Ref. (Acts Retirement) |
| 5.00 |
|
| 11/15/20 |
|
|
| 89,351 |
|
140,000 |
| St. Johns Co. Indl. Dev. Auth. Rev. Ref. (Bayview) |
| 5.00 |
|
| 10/1/17 |
|
|
| 121,276 |
|
250,000 |
| St. Johns Co. Indl. Dev. Auth. Rev. (Presbyterian) |
| 5.63 |
|
| 8/1/34 |
|
|
| 216,350 |
|
100,000 |
| Sarasota Co. Hlth. Rev. (V1g. on the Isle) |
| 5.50 |
|
| 1/1/27 |
|
|
| 82,693 |
|
250,000 |
| Sarasota Natl. Cmnty. Spl. Assessment |
| 5.30 |
|
| 5/1/39 |
|
|
| 171,180 |
|
50,000 |
| Seminole Tribe Spl. Ob1ig. Rev. |
| 5.75 |
|
| 10/1/22 |
|
|
| 46,504 |
|
150,000 |
| Stoneybrook South Cmnty. Spl. Asst. Rev. |
| 5.45 |
|
| 11/1/15 |
|
|
| 131,075 |
|
300,000 |
| Tallahassee H1th. Facs. Rev. (Mem. Hlth. Care) |
| 6.38 |
|
| 12/1/30 |
|
|
| 288,789 |
|
25,000 |
| Waters Edge Cmnty. Dev. Dist. Cap. Impt. |
| 5.00 |
|
| 11/1/12 |
|
|
| 21,185 |
|
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|
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|
|
| 4,132,399 |
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6
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|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
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|
Georgia (0.7%) |
|
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| ||
100,000 |
| Chatham Co. Hosp. Rev. Ref. Impt. (Mem. Med. Ctr.) |
| 5.50 |
|
| 1/1/21 |
|
|
| 100,017 |
|
200,000 |
| Main St. Nat. Gas Inc. Rev. (GA Gas) |
| 5.50 |
|
| 7/15/17 |
|
|
| 26,000 |
|
100,000 |
| Med. Ctr. Hosp. Auth. (Spring Harbor Green Isl.) |
| 5.25 |
|
| 7/1/27 |
|
|
| 77,991 |
|
30,000 |
| Private Colleges & Univ. Rev. (Mercer Univ.) |
| 5.38 |
|
| 10/1/29 |
|
|
| 26,225 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 230,233 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Guam (0.2%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Northern Mariana Islands G.O. |
| 5.00 |
|
| 10/1/22 |
|
|
| 83,509 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Idaho (1.8%) |
|
|
|
|
|
|
|
|
|
| ||
335,000 |
| ID Hsg. & Fin. Assn. Rev. (ID Arts Center Sch.) |
| 5.50 |
|
| 12/1/18 |
|
|
| 310,086 |
|
150,000 |
| ID Hsg. & Fin. Assn. Rev. (Liberty Charter Sch.) |
| 5.50 |
|
| 6/1/21 |
|
|
| 137,655 |
|
220,000 |
| ID Hsg. & Fin. Assn. Nonprofit Facs. Rev. |
| 5.63 |
|
| 7/1/21 |
|
|
| 205,084 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 652,825 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Illinois (7.2%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| Annawan Tax Alloc. (Patriot Renewable Fuels LLC) |
| 5.63 |
|
| 1/1/18 |
|
|
| 218,545 |
|
320,000 |
| Cook Co. Sch. Dist. No. 148 (Dolton) |
| 5.50 |
|
| 12/1/27 |
|
|
| 278,547 |
|
150,000 |
| Harvey Ref. & Impt. G.O. |
| 5.50 |
|
| 12/1/27 |
|
|
| 132,631 |
|
250,000 |
| IL Fin. Auth. Rev. (Sedgebrook Inc. Fac.) |
| 5.40 |
|
| 11/15/16 |
|
|
| 229,075 |
|
165,000 |
| IL Fin. Auth. Rev. (OSF Hea1thcare Sys.) |
| 5.25 |
|
| 11/15/22 |
|
|
| 147,093 |
|
150,000 |
| IL Fin. Auth. Rev. (Swedish American Hosp.) |
| 5.00 |
|
| 11/15/23 |
|
|
| 137,307 |
|
350,000 |
| IL Fin. Auth. Rev. (Tabor Hills Supportive Living) |
| 5.25 |
|
| 11/15/26 |
|
|
| 286,681 |
|
205,000 |
| IL Fin. Auth. Rev. (Intl. Ice Ctr.) |
| 7.00 |
|
| 12/1/35 |
|
|
| 176,577 |
|
150,000 |
| IL Fin. Auth. Rev. (Elmhurst Mem.) |
| 5.63 |
|
| 1/1/37 |
|
|
| 131,881 |
|
200,000 |
| IL Fin. Auth. Rev. (North Shore Ice Arena) |
| 6.25 |
|
| 12/1/38 |
|
|
| 174,342 |
|
55,000 |
| IL Health Facs. Auth. Rev. (Condell Med. Ctr.) |
| 5.50 |
|
| 5/15/32 |
|
|
| 46,139 |
|
100,000 |
| Manhattan Spl. Tax. (Groebe Farm-Stonegate) |
| 5.75 |
|
| 3/1/22 |
|
|
| 92,861 |
|
200,000 |
| Markham IL G.O. |
| 4.75 |
|
| 2/1/17 |
|
|
| 184,738 |
|
100,000 |
| Southwestern IL Dev. Auth. Tax. Alloc. Rev. Ref. |
| 7.00 |
|
| 10/1/22 |
|
|
| 89,885 |
|
500,000 |
| Winnebago & Stephenson Co. (Sch. Dist. 321) (5) |
| 5.25 |
|
| 1/1/19 |
|
|
| 272,460 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 2,598,762 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Iowa (1.7%) |
|
|
|
|
|
|
|
|
|
| ||
290,000 |
| Altoona Urban Renewal Tax Increment Rev. |
| 6.00 |
|
| 6/1/28 |
|
|
| 266,771 |
|
150,000 |
| IA Fin. Auth. Sr. Hsg. Rev. (Wedum Walnut Ridge) |
| 5.00 |
|
| 12/1/14 |
|
|
| 137,343 |
|
100,000 |
| IA Fin. Auth. Sr. Living (Deerfield Ret. Cmnty.) |
| 5.00 |
|
| 11/15/21 |
|
|
| 74,295 |
|
200,000 |
| IA Fin. Auth. Sr. Living (Deerfield Ret. Cmnty.) |
| 5.50 |
|
| 11/15/27 |
|
|
| 146,146 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 624,555 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Indiana (1.9%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| IN H1th. & Educ. Fac. Fing. Auth. Hosp. Rev. |
| 5.50 |
|
| 3/1/22 |
|
|
| 181,262 |
|
200,000 |
| Paoli Bldg. Corp. (First Mtg.) |
| 5.00 |
|
| 1/15/32 |
|
|
| 173,260 |
|
150,000 |
| St. Joseph Co. Hosp. Auth. Rev. (Madison Ctr.) |
| 5.80 |
|
| 2/15/24 |
|
|
| 134,789 |
|
250,000 |
| St. Joseph Co. Hosp. Auth. Health. Facs. Rev. |
| 5.25 |
|
| 2/15/28 |
|
|
| 206,025 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 695,336 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Kentucky (1.9%) |
|
|
|
|
|
|
|
|
|
| ||
140,000 |
| Jefferson Co. Mtg. Rev. (Christian Church Homes) |
| 6.13 |
|
| 11/15/13 |
|
|
| 140,039 |
|
250,000 |
| Louisville/Jefferson Co. Health Fac. (Jewish Hosp.) |
| 6.00 |
|
| 2/1/22 |
|
|
| 249,067 |
|
300,000 |
| Louisville/Jefferson Co. (Bellarmine Univ.) |
| 6.00 |
|
| 5/1/33 |
|
|
| 273,495 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 662,601 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Louisiana (1.4%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Caddo Parish Sew. Dist. No. 7 Rev. Ref. |
| 6.60 |
|
| 11/1/24 |
|
|
| 101,828 |
|
215,000 |
| LA Loc. Gov. Rev. (Cap. Pjs. & Equip. Acquisition) |
| 6.55 |
|
| 9/1/25 |
|
|
| 191,277 |
|
120,000 |
| St. Bernard Parish Single Family Mtg. Rev. |
| 5.80 |
|
| 3/1/39 |
|
|
| 120,716 |
|
125,000 |
| St. John Baptist Parish Rev. (Marathon Oil) |
| 5.13 |
|
| 6/1/37 |
|
|
| 96,163 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 509,984 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Maryland (0.7%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| Howard Co. Retirement Cmnty. Rev. (Vantage House) |
| 5.25 |
|
| 4/1/27 |
|
|
| 195,772 |
|
60,000 |
| MD State Hlth. & Hgr. Educ. Facs. (King Farm Pres) |
| 5.00 |
|
| 1/1/17 |
|
|
| 53,854 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 249,626 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Massachusetts (1.9%) |
|
|
|
|
|
|
|
|
|
| ||
300,000 |
| MA St. Hlth. & Educ. Rev. (Quincy Med. Ctr.) |
| 5.13 |
|
| 1/15/12 |
|
|
| 290,760 |
|
200,000 |
| MA St. Hlth. & Educ. Rev. (Nichols College) |
| 6.00 |
|
| 10/1/17 |
|
|
| 197,814 |
|
100,000 |
| MA State Hlth. & Educ. (Valley Regl. Hlth. Sys.) |
| 5.75 |
|
| 7/1/18 |
|
|
| 100,114 |
|
75,000 |
| Pioneer Valley Regl. Sch. Dist. G.O. |
| 6.30 |
|
| 6/1/19 |
|
|
| 77,164 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 665,852 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 12.
7
|
Sit High Income Municipal Bond Fund (continued) |
|
September 30, 2008 |
Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
| |||
Michigan (4.6%) |
|
|
|
|
|
|
|
|
|
| ||
350,000 |
| Advanced Technology Academy Pub. Sch. Rev. |
| 6.00 |
|
| 11/1/28 |
|
|
| 317,772 |
|
200,000 |
| Bishop Intl Airport Auth. Rev. |
| 5.13 |
|
| 12/1/17 |
|
|
| 184,746 |
|
150,000 |
| Detroit G.O. |
| 5.25 |
|
| 4/1/20 |
|
|
| 142,636 |
|
250,000 |
| Grand Traverse Academy Pub. Sch. Acad. Rev. Ref. |
| 5.00 |
|
| 11/1/22 |
|
|
| 205,852 |
|
50,000 |
| Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) |
| 5.25 |
|
| 11/15/14 |
|
|
| 49,430 |
|
100,000 |
| Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) |
| 5.38 |
|
| 11/15/36 |
|
|
| 80,647 |
|
155,000 |
| MI Educ. Facs. Oblig. Rev. Ref. (Bradford) |
| 6.00 |
|
| 9/1/16 |
|
|
| 152,883 |
|
250,000 |
| MI St. Bldg. Auth. Rev. (5) (6) |
| 5.98 |
|
| 10/15/21 |
|
|
| 114,617 |
|
40,000 |
| MI St. Hosp. Rev. Ref. (Detroit Medical) |
| 5.25 |
|
| 8/15/27 |
|
|
| 33,497 |
|
150,000 |
| MI St. Strategic Fd. Rev. Ref. (Detroit Edison) |
| 5.45 |
|
| 9/1/29 |
|
|
| 137,595 |
|
250,000 |
| MI Tob. Settlement Fin. Auth. Sr. Rev. |
| 5.13 |
|
| 6/1/22 |
|
|
| 211,108 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,630,783 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Minnesota (3.2%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Cloquet Hsg. Fac. Rev. Ref. (HADC Cloquet LLC) |
| 5.50 |
|
| 8/1/25 |
|
|
| 83,812 |
|
100,000 |
| Columbia Heights Econ. Dev. Rev. (Huset Park) |
| 5.00 |
|
| 2/15/17 |
|
|
| 90,481 |
|
100,000 |
| Cuyuna Range Hosp. Dist. Hlth. Facs. Rev. Ref. |
| 5.00 |
|
| 6/1/29 |
|
|
| 81,404 |
|
80,000 |
| St. Cloud Hsg. & Redev. MF Rev. (Germain Towers) |
| 5.90 |
|
| 9/1/20 |
|
|
| 70,310 |
|
200,000 |
| St. Paul Hsg. & Redev. Auth. MF (Marian Ctr.) |
| 5.05 |
|
| 11/1/17 |
|
|
| 180,476 |
|
165,000 |
| St. Paul Hsg. & Redev. Rev. (Cmnty. Peace Acad.) |
| 5.00 |
|
| 12/1/18 |
|
|
| 151,147 |
|
150,000 |
| St. Paul Hsg. & Redev. Auth. Rev. (US Bank Ops.) |
| 6.50 |
|
| 8/1/22 |
|
|
| 143,148 |
|
100,000 |
| St. Paul Hsg. & Redev. Rev. (Healthpartners) |
| 5.25 |
|
| 5/15/36 |
|
|
| 81,747 |
|
375,000 |
| St. Paul Port Auth. Lse. Rev. (Regions Hosp. Pkg.) |
| 5.00 |
|
| 8/1/36 |
|
|
| 280,316 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,162,841 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Missouri (2.4%) |
|
|
|
|
|
|
|
|
|
| ||
300,000 |
| Independence 39th St. Transn. Dist. Rev. |
| 6.88 |
|
| 9/1/32 |
|
|
| 275,148 |
|
140,000 |
| Joplin Indl. Dev. Auth. Rev. Ref. (Christian) |
| 5.50 |
|
| 5/15/17 |
|
|
| 124,726 |
|
100,000 |
| Lakeside 370 Levee Dist. Spl. Tax |
| 7.00 |
|
| 4/1/28 |
|
|
| 93,660 |
|
250,000 |
| MO Dev. Fin. Brd. Rev. (Arnold-Rd Infrastructure) |
| 5.00 |
|
| 11/1/27 |
|
|
| 223,108 |
|
150,000 |
| St. Louis Co. Indl. Rev. (St. Andrews) |
| 5.38 |
|
| 12/1/27 |
|
|
| 150,857 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 867,499 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Nebraska (1.3%) |
|
|
|
|
|
|
|
|
|
| ||
500,000 |
| Madison Co. Hosp. Auth. No. 1 (Faith Regl. Hlth.) |
| 5.50 |
|
| 7/1/21 |
|
|
| 456,235 |
|
|
|
|
|
|
|
|
|
|
|
| ||
| ||||||||||||
Nevada (3.3%) |
|
|
|
|
|
|
|
|
|
| ||
215,000 |
| Clark Co. Impt. Dist. (128 Summerlin) |
| 5.00 |
|
| 2/1/20 |
|
|
| 180,817 |
|
250,000 |
| Clark Co. Poll. Ctr. Rev. Ref. (Nev. Pwr. Co.) |
| 5.30 |
|
| 10/1/11 |
|
|
| 242,660 |
|
250,000 |
| Henderson Rev. (Catholic Hlth. Care West) |
| 5.63 |
|
| 7/1/24 |
|
|
| 234,932 |
|
250,000 |
| Sparks Redev. Agy. Tax Increment Rev. (Area No. 2) |
| 6.40 |
|
| 6/1/20 |
|
|
| 233,760 |
|
300,000 |
| Sparks Tourism Impt. Dist. No. 1 Sr. Sales Tax. |
| 6.50 |
|
| 6/15/20 |
|
|
| 281,505 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,173,674 |
|
|
|
|
|
|
|
|
|
|
|
| ||
New Hampshire (0.2%) |
|
|
|
|
|
|
|
|
|
| ||
300,000 |
| Manchester Hsg. & Redev. Auth. Rev. (5) |
| 6.91 |
|
| 1/1/27 |
|
|
| 76,479 |
|
|
|
|
|
|
|
|
|
|
|
| ||
| ||||||||||||
New Jersey (0.5%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| NJ Hlth. Care. Rev. (St. Josephs Hlth. Care Sys.) |
| 5.75 |
|
| 7/1/15 |
|
|
| 188,084 |
|
|
|
|
|
|
|
|
|
|
|
| ||
New Mexico (1.3%) |
|
|
|
|
|
|
|
|
|
| ||
270,000 |
| Farmington Poll. Ctr. Rev. Ref. (San Juan) |
| 6.30 |
|
| 12/1/16 |
|
|
| 256,430 |
|
250,000 |
| NM State Hosp. Equip. Rev. Ref. (Rehoboth) |
| 5.00 |
|
| 8/15/17 |
|
|
| 212,168 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 468,598 |
|
|
|
|
|
|
|
|
|
|
|
| ||
New York (0.8%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Nassau Co. Indl. Rev. (Amsterdam at Harborside) |
| 5.88 |
|
| 1/1/18 |
|
|
| 94,577 |
|
200,000 |
| Seneca Nations Indians Cap. Impt. Auth. |
| 5.00 |
|
| 12/1/23 |
|
|
| 165,082 |
|
35,000 |
| Tobacco Settlement Fin. Corp. Rev. |
| 5.00 |
|
| 6/1/11 |
|
|
| 35,023 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 294,682 |
|
|
|
|
|
|
|
|
|
|
|
| ||
North Carolina (1.3%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Buncome Co. Proj. (Woodin Downtown Corridor) |
| 6.75 |
|
| 8/1/24 |
|
|
| 91,676 |
|
250,000 |
| NC Med. Care. Cmmn. Rev. (Arc Projects) |
| 5.80 |
|
| 10/1/34 |
|
|
| 219,148 |
|
200,000 |
| NC Med. Care Cmnty. Retirement Facs. (Brookwood) |
| 5.25 |
|
| 1/1/32 |
|
|
| 150,098 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 460,922 |
|
|
|
|
|
|
|
|
|
|
|
| ||
North Dakota (0.9%) |
|
|
|
|
|
|
|
|
|
| ||
104,429 |
| City of Washburn (Bismarck State College Fdtn.) |
| 5.01 |
|
| 4/1/32 |
|
|
| 95,148 |
|
250,000 |
| Grand Forks Healthcare Sys. Rev. (Altru Health) |
| 5.63 |
|
| 8/15/27 |
|
|
| 232,020 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 327,168 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Ohio (5.0%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| Akron Bath Copley Hosp. Rev. (Summa Hlth.) |
| 5.25 |
|
| 11/15/31 |
|
|
| 209,717 |
|
100,000 |
| Buckeye OH Tob. Settlement Asset-Backed Sr. Rev. |
| 5.13 |
|
| 6/1/24 |
|
|
| 83,152 |
|
250,000 |
| Cleveland-Cuyahoga Co. Rev. (St. Clarence) |
| 6.00 |
|
| 5/1/21 |
|
|
| 205,425 |
|
143,500 |
| Cuyahoga Co. Hsg. Mtg. Rev. (R. H. Myers Apts.) |
| 5.70 |
|
| 3/20/42 |
|
|
| 140,765 |
|
350,000 |
| Erie Co. Hosp. Facs. Rev. (Firelands Regl. Med. Ctr.) |
| 5.63 |
|
| 8/15/32 |
|
|
| 324,247 |
|
300,000 |
| Greene Co. Impt. Rev. Notes (Greene Town Ctr.) |
| 6.00 |
|
| 3/5/09 |
|
|
| 300,138 |
|
205,000 |
| Hamilton Co. Healthcare Rev. Ref. (Life Enriching) |
| 5.00 |
|
| 1/1/27 |
|
|
| 168,961 |
|
150,000 |
| Ross Co. Hosp. Rev. Ref. (Adena Hlth. Sys.) |
| 5.75 |
|
| 12/1/28 |
|
|
| 142,110 |
|
250,000 |
| Toledo-Lucas Co. Spl. Assmt. Rev. (Crocker Park) |
| 5.38 |
|
| 12/1/35 |
|
|
| 210,695 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 1,785,210 |
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Oklahoma (0.7%) |
|
|
|
|
|
|
|
|
|
| ||
195,000 |
| Atoka Co. Hlth. Care Rev. (Atoka Mem. Hosp) |
| 5.88 |
|
| 10/1/18 |
|
|
| 173,129 |
|
100,000 |
| Grady Co. Indl. Auth. Lease Rev. |
| 6.00 |
|
| 11/1/29 |
|
|
| 94,516 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 267,645 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Oregon (1.0%) |
|
|
|
|
|
|
|
|
|
| ||
100,000 |
| Oregon St. Hlth. Hsg. Educ. & Cultural Facs. Rev. |
| 8.00 |
|
| 11/15/26 |
|
|
| 100,051 |
|
300,000 |
| Western Generation Agy. Rev. (Wauna Cogeneration) |
| 5.00 |
|
| 1/1/21 |
|
|
| 246,192 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 346,243 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Pennsylvania (2.6%) |
|
|
|
|
|
|
|
|
|
| ||
210,000 |
| Allegheny Co. Higher Educ. Rev. (Thiel College) |
| 5.38 |
|
| 11/15/19 |
|
|
| 193,824 |
|
350,000 |
| Cambridge Area Jt. Auth. Gtd. Swr. Rev. |
| 5.63 |
|
| 12/1/28 |
|
|
| 306,677 |
|
45,000 |
| Grove City Area Rev. (United Cmnty Hosp.) |
| 5.25 |
|
| 7/1/12 |
|
|
| 44,875 |
|
250,000 |
| Lehigh Co. Gen. Purpose Rev. (St. Luke’s Hosp) |
| 2.81 |
|
| 8/15/42 |
|
|
| 147,500 |
|
100,000 |
| Lancaster Co. Hosp. Auth. Rev. (Brethren V1g.) |
| 5.20 |
|
| 7/1/12 |
|
|
| 99,390 |
|
60,000 |
| Montgomery Co. Indl. Dev. Auth. (Whitemarsh) |
| 6.00 |
|
| 2/1/21 |
|
|
| 53,096 |
|
100,000 |
| Quakertown Gen. Auth. Hlth. Rev. (Lifequest) |
| 6.05 |
|
| 7/20/24 |
|
|
| 100,376 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 945,738 |
|
|
|
|
|
|
|
|
|
|
|
| ||
South Carolina (2.4%) |
|
|
|
|
|
|
|
|
|
| ||
395,000 |
| Laurens Co. Sch. Dist. No. 55 Installment Rev. |
| 5.25 |
|
| 12/1/30 |
|
|
| 332,914 |
|
150,000 |
| SC Educ. Facs. Auth. Rev. (Southern Wesleyan Univ.) |
| 5.00 |
|
| 3/1/20 |
|
|
| 136,448 |
|
150,000 |
| SC Hsg. Fin. & Dev. Auth. Mtg. Rev. |
| 5.50 |
|
| 7/1/32 |
|
|
| 145,160 |
|
150,000 |
| SC Jobs EDA Rev. Ref. & Impt. (Hampton Med.) |
| 4.75 |
|
| 11/1/12 |
|
|
| 139,863 |
|
100,000 |
| SC Jobs EDA Rev. Ref. & Impt. (Hampton Med.) |
| 4.75 |
|
| 11/1/13 |
|
|
| 91,363 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 845,748 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Tennessee (0.5%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| Blount Co. Hlth. & Educ. Facs. (Asbury, Inc.) |
| 5.13 |
|
| 4/1/23 |
|
|
| 162,092 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Texas (8.3%) |
|
|
|
|
|
|
|
|
|
| ||
150,000 |
| Austin Convention Enterprises Rev. Ref. |
| 5.25 |
|
| 1/1/24 |
|
|
| 130,047 |
|
95,000 |
| Bexar Co. Hsg. Rev. Ref. (Nob Hill Apts.) |
| 5.50 |
|
| 6/1/11 |
|
|
| 89,164 |
|
150,000 |
| Bexar Co. Hsg. Corp. Rev. (Dymaxion & Marbach) |
| 6.10 |
|
| 8/1/30 |
|
|
| 135,144 |
|
100,000 |
| Bexar Co. Hsg. Fin. Corp. Rev. (American Oppty.) |
| 5.80 |
|
| 1/1/31 |
|
|
| 99,495 |
|
60,000 |
| Harris Co. Hsg. Rev. Sr. Lien (Windsor Hsg. Fdn.) |
| 6.30 |
|
| 6/1/25 |
|
|
| 60,126 |
|
100,000 |
| Hopkins Co. Hosp. Dist. Rev. |
| 5.75 |
|
| 2/15/28 |
|
|
| 88,777 |
|
143,078 |
| Galveston Co. Muni. Util. Dist. No. 52 |
| 6.25 |
|
| 8/12/09 |
|
|
| 142,426 |
|
250,000 |
| Lewisville Combination Contract Impt. Rev. |
| 6.75 |
|
| 10/1/32 |
|
|
| 229,347 |
|
100,000 |
| Kerrville Hlth. Facs. Rev. (Sid Peterson) |
| 5.45 |
|
| 8/15/35 |
|
|
| 83,323 |
|
250,000 |
| Midlothian Dev. Auth. Tax Alloc. Rev. Ref. |
| 5.00 |
|
| 11/15/16 |
|
|
| 231,103 |
|
150,000 |
| North TX Twy. Toll Rev. Ref. Second Tier |
| 6.13 |
|
| 1/1/31 |
|
|
| 143,922 |
|
200,000 |
| North TX Twy. Rev. Ref. First Tier |
| 5.63 |
|
| 1/1/33 |
|
|
| 182,618 |
|
500,000 |
| Port Corpus Christi Auth. Nueces Co. (Union Pacific) |
| 5.65 |
|
| 12/1/22 |
|
|
| 465,750 |
|
100,000 |
| Richardson Rev. Ref. & Impt. (Baylor/Richardson) |
| 5.63 |
|
| 12/1/28 |
|
|
| 86,703 |
|
50,000 |
| Tarrant Co. Cultural Educ. Rev. (C.C. Young) |
| 5.00 |
|
| 2/15/13 |
|
|
| 47,053 |
|
150,000 |
| TX Pub. Fin. Auth. Rev. (Uplift Educ.) |
| 5.35 |
|
| 12/1/17 |
|
|
| 140,274 |
|
250,000 |
| TX Pub. Fin. Auth. Rev. (Idea Pub. School) |
| 5.00 |
|
| 8/15/30 |
|
|
| 192,338 |
|
250,000 |
| Travis Co. Hlth. Dev. Corp. (Querencia Barton Cr.) |
| 5.10 |
|
| 11/15/15 |
|
|
| 227,265 |
|
250,000 |
| Tyler Hlth. Facs. Dev. Corp. (Mother Frances) |
| 5.00 |
|
| 7/1/33 |
|
|
| 201,515 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 2,976,390 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Utah (0.9%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| Provo Charter Sch. Rev. (Freedom Academy Fdn.) |
| 5.50 |
|
| 6/15/37 |
|
|
| 152,516 |
|
200,000 |
| UT Assoc. Muni. Pwr. Sys. Rev. |
| 5.00 |
|
| 5/1/27 |
|
|
| 162,324 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 314,840 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Washington (1.4%) |
|
|
|
|
|
|
|
|
|
| ||
200,000 |
| Kalispe1 Tribe Indians Priority Dist. Rev. |
| 6.20 |
|
| 1/1/16 |
|
|
| 195,310 |
|
100,000 |
| Quinault Indian Nation Rev. Ref. & Impt. (Beach) |
| 5.80 |
|
| 12/1/15 |
|
|
| 91,625 |
|
150,000 |
| WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) |
| 5.25 |
|
| 1/1/17 |
|
|
| 135,131 |
|
100,000 |
| WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) |
| 5.25 |
|
| 1/1/13 |
|
|
| 95,767 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 517,833 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Virginia (0.8%) |
|
|
|
|
|
|
|
|
|
| ||
250,000 |
| Fairfax Co. EDA Rev. (Goodwin House) |
| 5.00 |
|
| 10/1/22 |
|
|
| 221,762 |
|
100,000 |
| VA Tobacco Settlement Fin. Corp. Senior Rev. |
| 5.00 |
|
| 6/1/47 |
|
|
| 63,572 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 285,334 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Wisconsin (2.5%) |
|
|
|
|
|
|
|
|
|
| ||
110,000 |
| Milwaukee Redev. Auth. Rev. (Academy of Learning) |
| 5.50 |
|
| 8/1/22 |
|
|
| 95,956 |
|
100,000 |
| WI Hlth. & Educ. Facs. Auth. (Beaver Dam Hosp.) |
| 6.00 |
|
| 8/15/19 |
|
|
| 95,089 |
|
250,000 |
| WI Hlth. & Educ Facs. Rev. Ref. (Three Pillars) |
| 5.60 |
|
| 8/15/23 |
|
|
| 231,198 |
|
100,000 |
| WI Hlth. & Educ Facs. Rev. Ref. (Three Pillars) |
| 5.75 |
|
| 8/15/26 |
|
|
| 92,131 |
|
300,000 |
| WI Hlth. & Educ Facs. Rev. (Sinai Samaritan Med. Ctr.) |
| 5.88 |
|
| 8/15/26 |
|
|
| 270,369 |
|
100,000 |
| WI Hlth. & Educ. Auth Rev. (Beaver Dam Hosp.) |
| 6.75 |
|
| 8/15/34 |
|
|
| 96,615 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| 881,358 |
|
|
|
|
|
|
|
|
|
|
|
| ||
Total municipal bonds (cost: $38,417,247) |
|
|
|
|
|
|
|
| 34,492,814 |
| ||
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 12.
9
|
Sit High Income Municipal Bond Fund (continued) |
September 30, 2008 |
|
Portfolio of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity ($) |
| Name of Issuer |
| Coupon Rate (%) |
| Maturity Date |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||
Closed-End Mutual Funds (2.3%) (2) |
|
|
|
|
|
|
|
|
|
| ||
25,000 |
| BlackRock Long-Term Muni Advantage Trust (BTA) |
|
|
|
|
|
|
|
| 220,000 |
|
5,000 |
| BlackRock MuniHoldings FL. Insured Fund (MFL) |
|
|
|
|
|
|
|
| 48,450 |
|
10,000 |
| DWS Strategic Muni Income Trust (KSM) |
|
|
|
|
|
|
|
| 89,500 |
|
40,000 |
| MFS High Income Muni trust (CXE) |
|
|
|
|
|
|
|
| 168,800 |
|
20,000 |
| Morgan Stanley Muni Income Opp. Trust (OIA) |
|
|
|
|
|
|
|
| 123,000 |
|
10,000 |
| Van Kampen Advantage Muni Income Trust II (VKI) |
|
|
|
|
|
|
|
| 99,300 |
|
5,000 |
| Van Kampen Trust Invsmt. Grade Muni Fund (VGM) |
|
|
|
|
|
|
|
| 58,150 |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total closed-end mutual funds (cost: $1,028,325) |
|
|
|
|
|
|
|
| 807,200 |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities (cost: $39,445,572) (3) |
|
|
|
|
|
|
| $ | 35,300,014 |
| ||
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 12.
10
|
|
| |
| |
|
This page has been left blank intentionally.
11
|
Sit High Income Municipal Bond Fund |
|
September 30, 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 September 30, 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 |
| $ | 39,445,572 |
|
|
|
| ||
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
Gross unrealized appreciation |
| $ | 3,269 |
|
Gross unrealized depreciation |
|
| (4,148,827 | ) |
|
|
| ||
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| ($ | 4,145,558 | ) |
|
|
|
|
|
(4) | Interest rate varies based on a predetermined schedule or to reflect current market conditions; rate shown is effective rate on September 30, 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. |
12
|
|
Sit High Income Municipal Bond Fund | |
| |
September 30, 2008 | |
|
|
|
|
|
ASSETS |
|
|
|
|
Investments in securities, at identified cost |
| $ | 39,445,572 |
|
|
|
| ||
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 35,300,014 |
|
Cash in bank on demand deposit |
|
| 82,598 |
|
Accrued interest and dividends receivable |
|
| 612,793 |
|
Receivable for investment securities sold |
|
| — |
|
Other receivables |
|
| — |
|
Receivable for Fund shares sold |
|
| — |
|
|
|
| ||
|
|
|
|
|
Total assets |
|
| 35,995,405 |
|
|
|
| ||
|
|
|
|
|
LIABILITIES |
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
Payable for investment securities purchased - when issued (note 1) |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
Cash portion of dividends payable to shareholders |
|
| 166,284 |
|
Other payables |
|
| — |
|
Accrued investment management and advisory fees |
|
| 26,924 |
|
|
|
| ||
|
|
|
|
|
Total liabilities |
|
| 193,208 |
|
|
|
| ||
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 35,802,197 |
|
|
|
| ||
|
|
|
|
|
Net assets consist of: |
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 40,064,424 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
Accumulated net realized gain (loss) from security transactions |
|
| (116,669 | ) |
Unrealized appreciation (depreciation) on investments |
|
| (4,145,558 | ) |
|
|
|
|
|
|
|
| ||
|
| $ | 35,802,197 |
|
|
|
| ||
|
|
|
|
|
Outstanding shares |
|
| 4,208,768 |
|
|
|
| ||
|
|
|
|
|
Net asset value per share of outstanding capital stock |
| $ | 8.51 |
|
|
|
|
|
|
|
| See accompanying notes to financial statements on pages 16 - 17. |
|
|
| 13 |
|
Sit High Income Municipal Bond Fund |
|
Six Months Ended September 30, 2008 |
|
|
|
|
|
Investment income: |
|
|
|
|
Income: |
|
|
|
|
Interest |
| $ | 919,993 |
|
|
|
| ||
Total income |
|
| 919,993 |
|
|
|
| ||
Expenses (note 3): |
|
|
|
|
Investment management and advisory services fee |
|
| 100,602 |
|
Regulatory expenses |
|
| 11,919 |
|
Fund administration services |
|
| 41,000 |
|
Custodian fees |
|
| 1,598 |
|
|
|
| ||
Total expenses |
|
| 155,119 |
|
|
|
| ||
|
|
|
|
|
Less fees absorbed by the adviser |
|
| (12,600 | ) |
|
|
| ||
|
|
|
|
|
Total net expenses |
|
| 142,519 |
|
|
|
| ||
|
|
|
|
|
Net investment income |
|
| 777,474 |
|
|
|
| ||
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (67,421 | ) |
|
|
|
|
|
Net change in unrealized appreciation (or depreciation) on investments |
|
| (2,628,874 | ) |
|
|
| ||
|
|
|
|
|
Net gain (loss) on investments |
|
| (2,696,295 | ) |
|
|
| ||
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 1,918,821 | ) |
|
|
|
|
|
| See accompanying notes to financial statements on pages 16 - 17. |
|
|
|
|
Sit High Income Municipal Bond Fund | |
|
|
|
|
|
|
|
|
|
| Six Months |
| Year |
| ||
|
|
|
| ||||
Operations: |
|
|
|
|
|
|
|
Net investment income |
| $ | 777,474 |
| $ | 675,057 |
|
Net realized gain (loss) on investments |
|
| (67,421 | ) |
| (49,248 | ) |
Net change in unrealized appreciation (depreciation) of investments |
|
| (2,628,874 | ) |
| (1,515,744 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| (1,918,821 | ) |
| (889,935 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
| (777,474 | ) |
| (675,057 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total distributions |
|
| (777,474 | ) |
| (675,057 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 15,861,018 |
|
| 18,313,440 |
|
Reinvested distributions |
|
| 444,719 |
|
| 176,522 |
|
Payments for shares redeemed |
|
| (2,584,117 | ) |
| (1,627,708 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Increase (decrease) in net assets from capital transactions |
|
| 13,721,620 |
|
| 16,862,254 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| 11,025,325 |
|
| 15,297,262 |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 24,776,872 |
|
| 9,479,610 |
|
|
|
|
| ||||
End of period |
| $ | 35,802,197 |
| $ | 24,776,872 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
| 1,731,987 |
|
| 1,922,409 |
|
Reinvested distributions |
|
| 48,737 |
|
| 18,480 |
|
Redeemed |
|
| (288,629 | ) |
| (170,994 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 1,492,095 |
|
| 1,769,895 |
|
|
|
|
|
|
|
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. |
|
|
| Fair Value Measurement |
|
|
| The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157), effective April 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments. The hierarchy of inputs is summarized below: |
|
|
| Level 1 – quoted prices in active markets for identical investments. |
| |
| Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| |
| Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
|
|
| The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value on September 30, 2008: |
|
|
|
|
|
|
|
|
| Investment in Securities at Value: |
| |||
Level 1 - Quoted Prices |
|
| $ | 35,300,014 |
|
|
Level 2 - Other Significant Observable Inputs |
|
|
| — |
|
|
Level 3 - Significant Unobservable Inputs |
|
|
| — |
|
|
|
|
|
|
| ||
|
|
| $ | 35,300,014 |
|
|
|
|
|
|
|
Line of Credit
The Sit Mutual Funds have 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 period ended September 30, 2008.
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
16
|
|
| |
| |
|
|
|
| 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 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 $49,248, which, if not offset by subsequent gains will begin to expire in 2016. |
|
|
| Distributions |
|
|
| Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Fund’s capital stock. Distributions from net investment income are declared daily and paid monthly for the Fund. Distributions from net realized gains, if any, will be made annually for the Fund. |
|
|
| Use of Estimates |
|
|
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. Actual results could differ from those estimates. |
|
|
(2) | Investment Security Transactions |
|
|
| The cost of purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended September 30, 2008, were as follows: |
|
|
|
|
Purchases ($) |
| Proceeds ($) |
|
19,583,259 |
| 3,887,105 |
|
|
|
(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 Funds 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 December 31, 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 December 31, 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 23,667 shares of the Fund as of September 30, 2008, which represented 0.6% of all shares outstanding. |
17
|
Sit High Income Municipal Bond Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
| Year |
| Three months |
| |||
|
|
|
|
| ||||||
|
|
|
|
|
|
|
| |||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 9.12 |
| $ | 10.01 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .21 |
|
| .41 |
|
| .08 |
|
Net realized and unrealized gains |
|
| (.61 | ) |
| (.89 | ) |
| .01 |
|
Total from operations |
|
| (.40 | ) |
| (.48 | ) |
| .09 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.21 | ) |
| (.41 | ) |
| (.08 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 8.51 |
| $ | 9.12 |
| $ | 10.01 |
|
Total investment return (2) |
|
| (2.82 | %) |
| (4.89 | %) |
| 0.90 | % |
Net assets at end of period (000’s omitted) |
| $ | 35,802 |
| $ | 24,777 |
| $ | 9,480 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 0.92 | % |
| 1.14 | % |
| 4.69 | % |
Expenses (with waiver) (4) |
|
| 0.85 | % |
| 0.85 | % |
| 0.85 | % |
Net investment income (without waiver) |
|
| 4.56 | % |
| 4.01 | % |
| (0.66 | %) |
Net investment income (with waiver) |
|
| 4.63 | % |
| 4.30 | % |
| 3.18 | % |
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 12.41 | % |
| 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 periods ended September 30, 2008 and March 31, 2007 are adjusted to an annual rate. | |
| 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. |
18
|
|
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 April 1, 2008 to September 30, 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 |
|
| Ending |
|
| Expenses Paid |
| |||||||||
Actual |
|
| $ | 1,000 |
|
|
|
| $ | 971.18 |
|
|
|
| $ | 4.18 |
|
|
Hypothetical (5% return before expenses) |
|
| $ | 1,000 |
|
|
|
| $ | 1,020.75 |
|
|
|
| $ | 4.28 |
|
|
19
|
|
Sit High Income Municipal Bond Fund | |
| |
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.
20
SEMI-ANNUAL REPORT - Sit High Income Municipal Bond Fund
Six Months Ended September 30, 2008
|
INVESTMENT ADVISER |
Sit Investment Associates, Inc. |
|
DISTRIBUTOR |
SIA Securities Corp. |
|
CUSTODIAN |
PFPC Trust Company |
|
TRANSFER AGENT AND DISBURSING AGENT |
PNC Global Investment Servicing |
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
KPMG LLP |
|
LEGAL COUNSEL |
Dorsey & Whitney LLP |
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report.
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 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 changes in the Registrant's internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
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 November 26, 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 November 26, 2008
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date November 26, 2008
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report. |
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 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 changes in the Registrant's internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
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 November 26, 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 November 26, 2008
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date November 26, 2008
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report.
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 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 changes in the Registrant's internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
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 November 26, 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 November 26, 2008
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date November 26, 2008