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: 811-03342
Sit Mid Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
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: June 30, 2006
Date of reporting period: December 31, 2005
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: 811-03343
Sit Large Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
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: June 30, 2006
Date of reporting period: December 31, 2005
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: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
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: June 30, 2006
Date of reporting period: December 31, 2005
Item 1: Reports to Stockholders
Sit Mutual Funds
Stock Funds
Semi-Annual Report
Six Months Ended December 31, 2005
A FAMILY OF NO-LOAD FUNDS
Balanced Fund
Dividend Growth Fund
Large Cap Growth Fund
Mid Cap Growth Fund
International Growth Fund
Small Cap Growth Fund
Science and Technology Growth Fund
Developing Markets Growth Fund
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Sit Mutual Funds |
STOCK FUNDS SEMI-ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments | ||||
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| Sit Mutual Funds |
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| Six Months Ended December 31, 2005 |
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Dear Fellow Shareholders:
Most equity and fixed income indices managed only modest gains during calendar year 2005, reflecting the normal maturation of a bull market cycle for stocks and the steady increasing of interest rates by the Federal Reserve. While we see similar challenges persisting in 2006, there are clearly numerous investment opportunities, with the improving relative performance of growth stocks over the last nine months of 2005 serving as a prime example.
Economic Overview
stable energy costs serve to limit CPI gains, perhaps to around the same level of growth experienced in 2005. Importantly, the combined impact of globalization and productivity trends appear to be holding labor costs in check, although this is something we will continue to monitor as the year progresses. We believe that these key trends- slower GDP growth and contained inflation- point to a much less active Federal Reserve in 2006.
Equity Strategy Summary
2
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ments in the year ahead. However, there are also several key positive trends that emerged over the past year that we believe signal opportunity in 2006. First, the relative performance of growth stocks improved following a difficult first quarter of 2005, with growth stocks across the Frank Russell capitalization indices outperforming their value counterparts over the final nine months of the year. Moderating overall corporate earnings growth has historically worked to the advantage of growth stock investors because the relative rate of earnings improves for growth companies. Second, with earnings rising and relatively unchanged stock prices, stocks are more attractively valued compared to one year ago. Encouragingly, price-earnings ratios for the domestic Sit equity funds declined, on average, by two multiple points over the past year. And finally, another trend worth noting is that corporations are no longer sitting on the significant cash balances accumulating over the last several years. Companies in the S&P 500 Index will return over $500 billion in 2005 to shareholders in the form of repurchases and dividends, an increase of over +36% from last year, according to Standard & Poors. We also expect high profitability levels and balance sheet strength to translate into broad improvements in capital spending in 2006.
est rates, including consumer durables and financial stocks.
With best wishes,
Eugene C. Sit, CFA
Chairman and Chief Investment Officer
3
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| Sit Mutual Funds |
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| Six Months Ended December 31, 2005 |
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After a slow start to 2005, stocks rebounded during the second half of the year as virtually every index we monitor posted a solid gain.
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SIT EQUITY FUNDS |
| 3-Month |
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Balanced SIBAX |
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| 2.23 | % |
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S&P 500 Index |
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| 2.09 |
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Lehman Aggregate Bond Index |
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| 0.59 |
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Dividend Growth SDVGX |
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| 1.90 |
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S&P 500 Index |
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| 2.09 |
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Large Cap Growth SNIGX |
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| 2.87 |
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Russell 1000® Growth Index(1)(5) |
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| 2.98 |
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S&P 500 Index(5) |
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| 2.09 |
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Mid Cap Growth(2) NBNGX |
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| 3.15 |
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Russell Mid Cap® Growth Index(1)(8) |
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| 3.44 |
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S&P MidCap 400 Index(5) |
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| 3.34 |
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International Growth(3) SNGRX |
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| 4.71 |
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MSCI EAFE Growth Index(1)(6) |
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| 4.34 |
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MSCI EAFE Index(6) |
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| 4.08 |
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Small Cap Growth(2) SSMGX |
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| 1.25 |
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Russell 2000® Growth Index(1)(7) |
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| 1.60 |
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Russell 2000® Index(7) |
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| 1.13 |
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Science & Technology Growth(4) SISTX |
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| 2.52 |
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ArcaEx 100 Technology Index(1) |
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| 2.18 |
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S&P 500 Index |
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| 2.09 |
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Developing Markets Growth(3) SDMGX |
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| 5.97 |
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MSCI Emerging Markets Index(7) |
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| 6.83 |
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*3- and 6-month returns 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.
(1)New primary index. Please see the the section titled “Fund Reviews and Portfolios of Investments” for the Fund for additional information.
(2)Stocks of small- and mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies.
(3)International investing has special risks, such as currency exchange fluctuations, high volitility, illiquidity and the possibility of political instability.
(4)Since the Fund focuses its investment on companies involved in the technology sector, an Investment in the Fund may involve a greater degree of risk than an investment in other mutual funds with greater diversification.
(5)Figures assume an inception date of 9/2/82.
(6)Figures assume an inception date of 10/31/91.
(7)Figures assume an inception date of 6/30/94.
(8)Russell Mid Cap® Growth Index inception 12/31/85.
4
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| AVERAGE ANNUAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2005 |
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6-Month |
| YTD 2005 |
| 3-Year |
| 5-Year |
| 10-Year |
| Since Inception |
| Inception Date |
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5.77 | % |
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| 7.51 | % |
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| 11.86 | % |
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| -0.17 | % |
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| 6.85 | % |
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| 7.65 | % |
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| 12/31/93 |
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5.77 |
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| 4.91 |
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| 14.39 |
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| 0.54 |
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| 9.07 |
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| 10.52 |
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-0.08 |
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| 2.43 |
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| 3.62 |
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| 5.87 |
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| 6.16 |
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| 6.34 |
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6.37 |
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| 9.41 |
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| — |
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| 10.14 |
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| 12/31/03 |
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5.77 |
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| 4.91 |
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| — |
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| — |
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| 7.84 |
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8.57 |
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| 9.59 |
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| 16.02 |
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| -4.75 |
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| 6.66 |
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| 11.12 |
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| 9/2/82 |
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7.11 |
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| 5.27 |
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| 13.24 |
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| -3.58 |
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| 6.73 |
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| 12.06 |
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5.77 |
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| 4.91 |
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| 14.39 |
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| 0.54 |
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| 9.07 |
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| 13.54 |
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13.12 |
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| 15.27 |
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| 23.16 |
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| -4.05 |
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| 7.36 |
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| 13.83 |
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| 9/2/82 |
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10.22 |
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| 12.10 |
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| 22.70 |
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| 1.38 |
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| 9.27 |
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8.38 |
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| 12.55 |
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| 21.15 |
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| 8.60 |
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| 14.36 |
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| 16.45 |
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17.55 |
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| 14.67 |
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| 18.57 |
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| -4.83 |
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| 1.73 |
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| 5.00 |
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| 11/1/91 |
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15.27 |
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| 13.28 |
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| 20.19 |
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| 1.92 |
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| 3.33 |
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| 4.16 |
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14.88 |
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| 13.54 |
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| 23.68 |
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| 4.55 |
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| 5.84 |
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| 6.58 |
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14.20 |
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| 18.52 |
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| 19.42 |
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| -2.03 |
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| 9.70 |
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| 13.47 |
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| 7/1/94 |
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8.01 |
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| 4.15 |
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| 20.92 |
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| 2.28 |
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| 4.68 |
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| 7.29 |
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5.88 |
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| 4.55 |
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| 22.13 |
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| 8.22 |
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| 9.26 |
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| 10.81 |
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15.54 |
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| 3.83 |
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| 16.03 |
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| -14.64 |
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| — |
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| 1.08 |
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| 12/31/97 |
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12.19 |
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| 7.36 |
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| 22.20 |
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| 0.53 |
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| — |
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| 14.12 |
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5.77 |
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| 4.91 |
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| 14.39 |
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| 0.54 |
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| — |
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| 4.78 |
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23.87 |
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| 33.77 |
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| 31.53 |
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| 10.32 |
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| 5.68 |
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| 4.34 |
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| 7/1/94 |
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25.00 |
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| 30.31 |
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| 34.23 |
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| 16.18 |
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| 4.42 |
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| 3.43 |
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5
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| Sit Mutual Funds |
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| TOTAL RETURN BY CALENDAR YEAR |
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| 1995 |
| 1996 |
| 1997 |
| 1998 | ||||
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| Balanced, SIBAX (Inception 12/31/93) |
| 25.43 | % |
| 15.80 | % |
| 21.73 | % |
| 21.30 | % |
| S&P 500 Index |
| 37.58 |
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| 22.96 |
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| 33.36 |
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| 28.58 |
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| Lehman Aggregate Bond Index |
| 18.47 |
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| 3.63 |
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| 9.65 |
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| 8.69 |
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| Dividend Growth, SDVGX (Inception 12/31/03) |
| — |
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| — |
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| — |
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| — |
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| S&P 500 Index |
| — |
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| — |
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| — |
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| — |
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| Large Cap Growth, SNIGX (Inception 9/2/82) |
| 31.66 |
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| 23.05 |
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| 31.70 |
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| 30.56 |
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| Russell 1000® Growth Index(1) |
| 37.18 |
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| 23.12 |
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| 30.48 |
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| 38.72 |
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| S&P 500 Index |
| 37.58 |
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| 22.96 |
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| 33.36 |
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| 28.58 |
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| Mid Cap Growth(2), NBNGX (Inception 9/2/82) |
| 33.64 |
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| 21.87 |
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| 17.70 |
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| 6.84 |
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| Russell Mid Cap® Growth Index(1) |
| 33.98 |
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| 17.48 |
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| 22.54 |
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| 17.87 |
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| S&P 400 Index |
| 30.94 |
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| 19.19 |
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| 32.29 |
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| 19.11 |
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| International Growth(3), SNGRX (Inception 11/1/91) |
| 9.36 |
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| 10.31 |
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| 4.81 |
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| 18.95 |
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| MSCI EAFE Growth Index(1) |
| 11.38 |
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| 3.46 |
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| 2.11 |
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| 22.21 |
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| MSCI EAFE Index |
| 11.21 |
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| 6.05 |
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| 1.78 |
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| 20.00 |
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| Small Cap Growth(2), SSMGX (Inception 7/1/94) |
| 52.16 |
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| 14.97 |
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| 7.63 |
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| 1.97 |
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| Russell 2000® Growth Index(1) |
| 31.04 |
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| 11.26 |
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| 12.94 |
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| 1.24 |
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| Russell 2000® Index |
| 28.45 |
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| 16.49 |
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| 22.36 |
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| -2.54 |
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| Science & Tech. Growth(4), SISTX (Inception 12/31/97) |
| — |
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| — |
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| — |
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| 38.40 |
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| ArcaEx Tech 100 Index(1) |
| — |
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| — |
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| — |
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| 54.60 |
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| S&P 500 Index |
| — |
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| — |
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| — |
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| 28.58 |
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| Developing Mkts. Growth(3), SDMGX (Inception 7/1/94) |
| -4.29 |
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| 17.27 |
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| -5.20 |
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| -24.93 |
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| MSCI Emerging Markets Index |
| -6.94 |
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| 3.92 |
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| -13.40 |
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| -27.52 |
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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. |
|
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| (1) | New primary index. Please see the the section titled “Fund Reviews and Portfolios of Investments” for the Fund for additional information. |
| (2) | Stocks of small- and mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. |
| (3) | International investing has special risks, such as currency exchange fluctuations, high volitility, illiquidity and the possibility of political instability. |
| (4) | Since the Fund focuses its investment on companies involved in the technology sector, an investment in the Fund may involve a greater degree of risk than an investment in other mutual funds with greater diversification. |
6
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| 1999 |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2005 | |||||||
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| Balanced, SIBAX (Inception 12/31/93) |
| 20.15 | % |
| -4.80 | % |
| -12.99 | % |
| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| S&P 500 Index |
| 21.04 |
|
| -9.11 |
|
| -11.88 |
|
| -22.10 |
|
| 28.68 |
|
| 10.88 |
|
| 4.91 |
|
| Lehman Aggregate Bond Index |
| -0.82 |
|
| 11.63 |
|
| 8.44 |
|
| 10.25 |
|
| 4.10 |
|
| 4.34 |
|
| 2.43 |
|
| Dividend Growth, SDVGX (Inception 12/31/03) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 10.91 |
|
| 9.41 |
|
| S&P 500 Index |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 10.88 |
|
| 4.91 |
|
| Large Cap Growth, SNIGX (Inception 9/2/82) |
| 33.41 |
|
| -13.84 |
|
| -27.70 |
|
| -30.58 |
|
| 26.34 |
|
| 12.79 |
|
| 9.59 |
|
| Russell 1000® Growth Index(1) |
| 33.16 |
|
| -22.43 |
|
| -20.42 |
|
| -27.89 |
|
| 29.76 |
|
| 6.30 |
|
| 5.27 |
|
| S&P 500 Index |
| 21.04 |
|
| -9.11 |
|
| -11.88 |
|
| -22.10 |
|
| 28.68 |
|
| 10.88 |
|
| 4.91 |
|
| Mid Cap Growth(2), NBNGX (Inception 9/2/82) |
| 70.65 |
|
| -4.35 |
|
| -33.39 |
|
| -34.64 |
|
| 38.51 |
|
| 17.02 |
|
| 15.27 |
|
| Russell Mid Cap® Growth Index(1) |
| 51.29 |
|
| -11.75 |
|
| -20.15 |
|
| -27.41 |
|
| 42.71 |
|
| 15.48 |
|
| 12.10 |
|
| S&P 400 Index |
| 14.72 |
|
| 17.50 |
|
| -0.61 |
|
| -14.52 |
|
| 35.62 |
|
| 16.48 |
|
| 12.55 |
|
| International Growth(3), SNGRX (Inception 11/1/91) |
| 50.77 |
|
| -26.66 |
|
| -33.26 |
|
| -29.84 |
|
| 28.70 |
|
| 12.97 |
|
| 14.67 |
|
| MSCI EAFE Growth Index(1) |
| 29.46 |
|
| -24.51 |
|
| -24.58 |
|
| -16.02 |
|
| 31.99 |
|
| 16.12 |
|
| 13.28 |
|
| MSCI EAFE Index |
| 26.96 |
|
| -14.17 |
|
| -21.44 |
|
| -15.94 |
|
| 38.59 |
|
| 20.25 |
|
| 13.54 |
|
| Small Cap Growth(2), SSMGX (Inception 7/1/94) |
| 108.63 |
|
| 6.25 |
|
| -28.19 |
|
| -26.22 |
|
| 34.57 |
|
| 6.79 |
|
| 18.59 |
|
| Russell 2000® Growth Index(1) |
| 43.10 |
|
| -22.44 |
|
| -9.24 |
|
| -30.27 |
|
| 48.53 |
|
| 14.31 |
|
| 4.15 |
|
| Russell 2000® Index |
| 21.26 |
|
| -3.02 |
|
| 2.49 |
|
| -20.48 |
|
| 47.25 |
|
| 18.33 |
|
| 4.55 |
|
| Science & Tech. Growth(4), SISTX (Inception 12/31/97) |
| 85.98 |
|
| -6.55 |
|
| -47.78 |
|
| -44.45 |
|
| 40.09 |
|
| 7.39 |
|
| 3.83 |
|
| ArcaEx Tech 100 Index(1) |
| 116.40 |
|
| -16.22 |
|
| -15.59 |
|
| -33.33 |
|
| 52.14 |
|
| 11.73 |
|
| 7.36 |
|
| S&P 500 Index |
| 21.04 |
|
| -9.11 |
|
| -11.88 |
|
| -22.10 |
|
| 28.68 |
|
| 10.88 |
|
| 4.91 |
|
| Developing Mkts. Growth(3), SDMGX (Inception 7/1/94) |
| 82.50 |
|
| -30.18 |
|
| -12.01 |
|
| -18.37 |
|
| 45.96 |
|
| 16.54 |
|
| 33.77 |
|
| MSCI Emerging Markets Index |
| 63.70 |
|
| -31.80 |
|
| -4.91 |
|
| -7.97 |
|
| 51.59 |
|
| 22.45 |
|
| 30.31 |
|
7
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| Sit Mutual Funds |
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| Average Annual Total Returns for Periods Ended December 31, 2005 |
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| The tables on this page and the next page show the Funds’ average annual total returns (before and after taxes) and the change in value of a broad-based market index over various periods ended December 31, 2005. The index information is intended to permit you to compare each Fund’s performance to a broad measure of market performance. The after-tax returns are intended to show the impact of federal income taxes on an investment in a Fund. The highest individual federal marginal income tax rate in effect during the specified period are 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 401(k) or IRA account). Indices reflect no deduction for fees, expenses, or taxes. |
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| Sit Balanced Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
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| Return Before Taxes |
| 7.51 | % |
| -0.17 | % |
| 6.85 | % | |
|
| Return After Taxes on Distributions |
| 7.02 | % |
| -0.91 | % |
| 5.54 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 6.14 | % |
| -0.58 | % |
| 5.28 | % | |
|
| Lehman Aggregate Bond Index |
| 2.43 | % |
| 5.87 | % |
| 6.16 | % | |
|
| S&P 500 Index |
| 4.91 | % |
| 0.54 | % |
| 9.07 | % | |
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| Dividend Growth Fund |
| 1 Year |
| 5 Years |
| Since Inception* |
| |||
|
| Return Before Taxes |
| 9.41 | % |
| n/a |
|
| 10.14 | % | |
|
| Return After Taxes on Distributions |
| 8.89 | % |
| n/a |
|
| 9.75 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 7.97 | % |
| n/a |
|
| 8.65 | % | |
|
| S&P 500 Index |
| 4.91 | % |
| n/a |
|
| 7.84 | % | |
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| Sit Large Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
|
| Return Before Taxes |
| 9.59 | % |
| -4.75 | % |
| 6.66 | % |
|
|
| Return After Taxes on Distributions |
| 9.56 | % |
| -4.81 | % |
| 5.71 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 8.15 | % |
| -3.99 | % |
| 5.56 | % |
|
|
| Russell 1000® Growth Index(1) |
| 5.27 | % |
| -3.58 | % |
| 6.73 | % |
|
|
| S&P 500 Index |
| 4.91 | % |
| 0.54 | % |
| 9.07 | % |
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8
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| Sit Mid Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
|
| Return Before Taxes |
| 15.27 | % |
| -4.05 | % |
| 7.36 | % |
|
|
| Return After Taxes on Distributions |
| 15.27 | % |
| -4.13 | % |
| 5.63 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 12.98 | % |
| -3.42 | % |
| 5.82 | % |
|
|
| Russell Mid Cap® Growth Index(1) |
| 12.10 | % |
| 1.38 | % |
| 9.27 | % |
|
|
| S&P 400 Mid Cap Index |
| 12.55 | % |
| 8.60 | % |
| 14.36 | % |
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| Sit International Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
|
| Return Before Taxes |
| 14.67 | % |
| -4.83 | % |
| 1.73 | % |
|
|
| Return After Taxes on Distributions |
| 14.58 | % |
| -4.88 | % |
| 1.19 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 12.47 | % |
| -4.05 | % |
| 1.34 | % |
|
|
| MSCI EAFE Growth Index(1) |
| 13.28 | % |
| 1.92 | % |
| 3.33 | % |
|
|
| MSCI EAFE Index |
| 13.54 | % |
| 4.55 | % |
| 5.84 | % |
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| Sit Small Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
|
| Return Before Taxes |
| 18.52 | % |
| -2.03 | % |
| 9.70 | % |
|
|
| Return After Taxes on Distributions |
| 18.52 | % |
| -2.04 | % |
| 9.04 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 15.74 | % |
| -1.72 | % |
| 8.26 | % |
|
|
| Russell 2000® Growth Index(1) |
| 4.15 | % |
| 2.28 | % |
| 4.68 | % |
|
|
| Russell 2000 ® Index |
| 4.55 | % |
| 8.22 | % |
| 9.26 | % |
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| Sit Science and Technology Growth Fund |
| 1 Year |
| 5 Years |
| Since Inception* |
| |||
|
| Return Before Taxes |
| 3.83 | % |
| -14.64 | % |
| 1.08 | % |
|
|
| Return After Taxes on Distributions |
| 3.83 | % |
| -14.56 | % |
| 1.00 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 3.26 | % |
| -11.75 | % |
| 0.98 | % |
|
|
| ArcaEx Tech 100 Index(1) |
| 7.36 | % |
| 0.53 | % |
| 14.12 | % |
|
|
| S&P 500 Index |
| 4.91 | % |
| 0.54 | % |
| 4.78 | % |
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| Sit Developing Markets Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| |||
|
| Return Before Taxes |
| 33.77 | % |
| 10.32 | % |
| 5.68 | % |
|
|
| Return After Taxes on Distributions |
| 33.70 | % |
| 10.29 | % |
| 5.66 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 28.70 | % |
| 8.97 | % |
| 4.98 | % |
|
|
| MSCI Emerging Markets Index |
| 30.31 | % |
| 16.18 | % |
| 4.42 | % |
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|
(1) | New primary index. Please see the the section titled “Fund Reviews and Portfolios of Investments” for the Fund for additional information. |
9
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| |
| Six Months Ended December 31, 2005 |
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| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, and Bryce A. Doty |
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|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
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|
|
Net Asset Value 12/31/05: |
| $15.18 Per Share |
6/30/05: |
| $14.53 Per Share |
|
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|
Total Net Assets: |
| $12.1 Million |
|
PORTFOLIO STRUCTURE |
10
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| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
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| |||||||
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| Sit |
| S&P |
| Lehman |
| |||||||
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| ||||
3 Month** |
|
| 2.23 | % |
|
| 2.09 | % |
|
| 0.59 | % | ||
6 Month** |
|
| 5.77 |
|
|
| 5.77 |
|
|
| -0.08 |
| ||
1 Year |
|
| 7.51 |
|
|
| 4.91 |
|
|
| 2.43 |
| ||
5 Years |
|
| -0.17 |
|
|
| 0.54 |
|
|
| 5.87 |
| ||
10 Years |
|
| 6.85 |
|
|
| 9.07 |
|
|
| 6.16 |
| ||
Inception |
|
| 7.65 |
|
|
| 10.52 |
|
|
| 6.34 |
| ||
(12/31/93) |
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CUMULATIVE TOTAL RETURNS* | ||||||||||||||
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| Sit |
| S&P |
| Lehman | ||||||||
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| ||
1 Year |
|
| 7.51 | % |
|
| 4.91 | % |
|
| 2.43 | % | ||
5 Years |
|
| -0.86 |
|
|
| 2.75 |
|
|
| 33.03 |
| ||
10 Years |
|
| 93.89 |
|
|
| 138.33 |
|
|
| 81.89 |
| ||
Inception |
|
| 142.40 |
|
|
| 232.23 |
|
|
| 109.21 |
| ||
(12/31/93) |
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*As of 12/31/05 | **Not annualized. | |||||||||||||
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(1) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
(2) | An unmanaged index which measures the performance of approximately 6,000 publicly traded bonds with an approximate average maturity of 10 years. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have grown to $19,389 in the Fund, $23,833 in the S&P 500 Index or $18,189 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | w | Valero Energy Corp. |
| w | General Electric Co. |
| w | Amgen, Inc. |
| w | Microsoft Corp. |
| w | UnitedHealth Group, Inc. |
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|
Bonds | w | U.S. Treasury Strip, 11/15/27 |
| w | U.S. Treasury Strip, 8/15/11 |
| w | Countrywide Home Loans, 2005-24 A36, 5.50%, 11/25/35 |
| w | Res. Asset Mtg. Products, Inc., 2004-SL3 A3, 7.50%, 12,25/31 |
| w | NB Capital Trust IV (Bank of America), 8.25%, 4/15/27 |
|
| Total Number of Holdings: 153 |
11
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| Sit Balanced Fund |
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| Portfolio of Investments - December 31, 2005 (Unaudited) |
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Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (64.3%) (2) |
|
|
| ||
|
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| ||
Communications (1.4%) |
|
|
| ||
2,500 |
| Crown Castle Intl. Corp. (3) |
| 67,275 |
|
4,900 |
| Vodafone Group, A.D.R. |
| 105,203 |
|
|
|
|
|
| |
|
|
| 172,478 |
| |
|
|
|
| ||
Consumer Durables (0.2%) |
|
|
| ||
600 |
| Electronic Arts, Inc. (3) |
| 31,386 |
|
|
|
|
|
| |
Consumer Non-Durables (2.3%) |
|
|
| ||
2,600 |
| PepsiCo, Inc. |
| 153,608 |
|
2,100 |
| The Procter & Gamble Co. |
| 121,548 |
|
|
|
|
|
| |
|
|
| 275,156 |
| |
|
|
|
| ||
Consumer Services (3.1%) |
|
|
| ||
2,000 |
| Comcast Corp. (3) |
| 51,920 |
|
800 |
| Harrah’s Entertainment, Inc. |
| 57,032 |
|
1,500 |
| Marriott International, Inc. |
| 100,455 |
|
2,500 |
| News Corp. |
| 38,875 |
|
900 |
| Royal Caribbean Cruises, Ltd. |
| 40,554 |
|
1,600 |
| Starbucks Corp. (3) |
| 48,016 |
|
2,300 |
| Time Warner, Inc. |
| 40,112 |
|
|
|
|
|
| |
|
|
|
| 376,964 |
|
|
|
|
|
| |
Electronic Technology (7.2%) |
|
|
| ||
2,900 |
| Analog Devices, Inc. |
| 104,023 |
|
7,500 |
| Cisco Systems, Inc. (3) |
| 128,400 |
|
2,900 |
| Dell Computer Corp. (3) |
| 86,971 |
|
9,300 |
| EMC Corp. (3) |
| 126,666 |
|
5,900 |
| Intel Corp. |
| 147,264 |
|
4,800 |
| Nokia Corp., A.D.R. |
| 87,840 |
|
3,600 |
| Qualcomm, Inc. |
| 155,088 |
|
1,000 |
| Texas Instruments, Inc. |
| 32,070 |
|
|
|
|
|
| |
|
|
|
| 868,322 |
|
|
|
|
|
| |
Energy Minerals (7.4%) |
|
|
| ||
700 |
| ConocoPhillips Co. |
| 40,726 |
|
2,400 |
| Murphy Oil Corp. |
| 129,576 |
|
1,500 |
| Occidental Petroleum Corp. |
| 119,820 |
|
1,800 |
| Southwestern Energy Co. |
| 64,692 |
|
1,900 |
| Suncor Energy, Inc. |
| 119,947 |
|
5,000 |
| Valero Energy Corp. |
| 258,000 |
|
3,633 |
| XTO Energy, Inc. |
| 159,634 |
|
|
|
|
|
| |
|
|
|
| 892,395 |
|
|
|
|
|
| |
Finance (7.1%) |
|
|
| ||
1,300 |
| American Express Co. |
| 66,898 |
|
2,121 |
| American International Group, Inc. |
| 144,716 |
|
1,200 |
| Bank of America Corp. |
| 55,380 |
|
2,166 |
| Citigroup, Inc. |
| 105,116 |
|
1,500 |
| Franklin Resources, Inc. |
| 141,015 |
|
1,000 |
| Goldman Sachs Group, Inc. |
| 127,710 |
|
1,000 |
| Prudential Financial, Inc. |
| 73,190 |
|
2,300 |
| Wells Fargo Co. |
| 144,509 |
|
|
|
|
|
| |
|
|
|
| 858,534 |
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
| ||
Health Services (2.2%) |
|
| ||
2,900 |
| UnitedHealth Group, Inc. |
| 180,206 |
1,100 |
| WellPoint, Inc. (3) |
| 87,769 |
|
|
|
| |
|
|
| 267,975 | |
|
|
| ||
Health Technology (11.2%) |
|
| ||
1,600 |
| Abbott Laboratories |
| 63,088 |
2,500 |
| Amgen, Inc. (3) |
| 197,150 |
1,900 |
| Boston Scientific Corp. (3) |
| 46,531 |
1,400 |
| Celgene Corp. |
| 90,720 |
3,100 |
| Elan Corp., A.D.R. (3) |
| 43,183 |
1,900 |
| Eli Lilly and Co. |
| 107,521 |
1,900 |
| Genentech, Inc. (3) |
| 175,750 |
900 |
| Gilead Sciences, Inc. (3) |
| 47,367 |
1,600 |
| Johnson & Johnson |
| 96,160 |
2,100 |
| Medtronic, Inc. |
| 120,897 |
3,955 |
| Pfizer, Inc. |
| 92,231 |
2,500 |
| St. Jude Medical, Inc. |
| 125,500 |
800 |
| Stryker Corp. |
| 35,544 |
2,500 |
| Teva Pharmaceutical, Ltd., A.D.R. |
| 107,525 |
|
|
|
| |
|
|
|
| 1,349,167 |
|
|
|
| |
Industrial Services (3.1%) |
|
| ||
1,450 |
| Nabors Industries, Ltd. (3) |
| 109,837 |
1,700 |
| Noble Corp. |
| 119,918 |
1,500 |
| Schlumberger Ltd. |
| 145,725 |
|
|
|
| |
|
|
|
| 375,480 |
|
|
|
| |
Non-Energy Minerals (0.3%) |
|
| ||
500 |
| Southern Copper Corp. |
| 33,490 |
|
|
|
| |
|
|
|
|
|
Process Industries (1.0%) |
|
| ||
1,050 |
| Air Products and Chemicals, Inc. |
| 62,150 |
1,300 |
| Dow Chemical Co. |
| 56,966 |
|
|
|
| |
|
|
| 119,116 | |
|
|
| ||
Producer Manufacturing (5.9%) |
|
| ||
1,800 |
| Caterpillar, Inc. |
| 103,986 |
7,000 |
| General Electric Co. |
| 245,350 |
1,400 |
| ITT Industries, Inc. |
| 143,948 |
1,100 |
| 3M Co. |
| 85,250 |
600 |
| The Boeing Co. |
| 42,144 |
1,600 |
| United Technologies Corp. |
| 89,456 |
|
|
|
| |
|
|
|
| 710,134 |
|
|
|
| |
Retail Trade (3.7%) |
|
| ||
1,800 |
| Best Buy Co., Inc. |
| 78,264 |
1,000 |
| eBay, Inc. (3) |
| 43,250 |
1,300 |
| J.C. Penney Co., Inc. |
| 72,280 |
1,200 |
| Lowe’s Companies, Inc. |
| 79,992 |
3,100 |
| Target Corp. |
| 170,407 |
|
|
|
| |
|
|
|
| 444,193 |
|
|
|
|
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
| ||
Technology Services (5.3%) |
|
|
| ||
2,000 |
| Adobe Systems, Inc. |
| 73,920 |
|
600 |
| Automatic Data Processing, Inc. |
| 27,534 |
|
1,900 |
| First Data Corp. |
| 81,719 |
|
225 |
| Google, Inc. (3) |
| 93,343 |
|
7,300 |
| Microsoft Corp. |
| 190,895 |
|
2,100 |
| SAP AG |
| 94,647 |
|
2,000 |
| Yahoo!, Inc. (3) |
| 78,360 |
|
|
|
|
|
| |
|
|
|
| 640,418 |
|
|
|
|
|
| |
Transportation (2.3%) |
|
|
| ||
1,800 |
| Burlington Northern Sante Fe Corp. |
| 127,476 |
|
1,100 |
| United Parcel Service, Inc. |
| 82,665 |
|
700 |
| UTI Worldwide, Inc. |
| 64,988 |
|
|
|
|
|
| |
|
|
| 275,129 |
| |
|
|
|
| ||
Utilities (0.6%) |
|
|
| ||
2,100 |
| Equitable Resources, Inc. |
| 77,049 |
|
|
|
|
|
| |
| |||||
Total common stocks |
| 7,767,386 |
| ||
|
|
| |||
(cost: $6,119,818) |
|
|
| ||
|
|
|
|
| |
Bonds (31.3%) (2) |
|
|
| ||
|
|
|
|
| |
Asset-Backed Securities (4.0%) |
|
|
| ||
|
| Green Tree Financial Corp.: |
|
|
|
6,009 |
| 1995-5 A6, 7.25%, 9/15/26 |
| 6,123 |
|
45,607 |
| 1997-1 A6, 7.29%, 3/15/28 |
| 47,428 |
|
46,929 |
| 1997-6 A10, 6.87%, 1/15/29 |
| 48,450 |
|
|
| Indymac Mfg. Housing, |
|
|
|
57,652 |
| 1998-2 A2, 6.17%, 12/25/11 |
| 56,089 |
|
|
| Origen Mfg. Housing: |
|
|
|
50,000 |
| 2001-A A5, 7.08%, 3/15/32 |
| 51,565 |
|
34,066 |
| 2002-A A3, 6.17%, 5/15/32 |
| 34,245 |
|
111,267 |
| Residential Asset Mtg. Products, Inc., |
|
|
|
|
| 2004-SL3 A3, 7.50%, 12/25/31 |
| 113,980 |
|
50,000 |
| Structured Asset Securities Corp., |
|
|
|
|
| 2005-4XS, 5.25%, 3/25/35 |
| 48,662 |
|
78,608 |
| UCFC Mfg. Housing, |
|
|
|
|
| 1998-2 A3, 6.163%, 8/15/19 |
| 78,591 |
|
|
|
|
|
| |
|
|
|
| 485,133 |
|
|
|
|
|
| |
Collateralized Mortgage Obligations (4.9%) |
|
|
| ||
|
| Countrywide Home Loans: |
|
|
|
50,000 |
| 2004-21 A9, 6.00%, 11/25/34 |
| 50,297 |
|
50,000 |
| 2005-J3 1A2, 5.50%, 9/25/35 |
| 48,386 |
|
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 |
| 117,123 |
|
|
| FHLMC: |
|
|
|
44,104 |
| 3.25%, 4/15/32 |
| 40,951 |
|
48,404 |
| 4.00%, 4/15/27 |
| 46,890 |
|
|
| FNMA: |
|
|
|
50,000 |
| 5.00%, 12/25/31 |
| 48,104 |
|
100,000 |
| 5.5%, 4/25/35 |
| 97,872 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
40,809 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
| 6.00%, 5/25/35 |
| 41,095 |
49,490 |
| Residential Funding Mtg. Securities I, |
|
|
|
| 2005-S6 A2, 5.25%, 8/25/35 |
| 48,247 |
47,783 |
| Washington Mutual Mtg. Pass-Through, |
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
| 47,395 |
|
|
|
| |
|
|
|
| 586,360 |
|
|
|
| |
|
|
|
|
|
Corporate Bonds (8.2%) |
|
| ||
100,000 |
| Academica Charter School, 8.00%, 8/15/24 |
| 103,192 |
39,639 |
| America West Airlines, 7.93%, 1/2/19 |
| 42,346 |
100,000 |
| Citigroup Capital, 7.75%, 12/1/36 |
| 105,210 |
84,000 |
| ConocoPhillips, 8.00%, 1/15/37 |
| 89,401 |
50,000 |
| CSX Corp., 9.75%, 6/15/20 |
| 68,262 |
83,076 |
| Delta Airlines, 6.718%, 1/2/23 |
| 84,264 |
50,000 |
| Everest Reins. Hldgs., 8.75%, 3/15/10 |
| 56,609 |
100,000 |
| JP Morgan Capital Trust II, 7.95%, 2/1/27 |
| 106,538 |
100,000 |
| McDonald’s Corp., 7.31%, 9/15/27 |
| 102,917 |
50,000 |
| Narragansett Electric, 7.39%, 10/1/27 |
| 52,810 |
100,000 |
| NB Capital Trust IV (Bank of America), |
|
|
|
| 8.25%, 4/15/27 |
| 107,083 |
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 |
| 76,730 |
|
|
|
| |
|
|
|
| 995,362 |
|
|
|
| |
Federal Home Loan Mortgage Corporation (2.3%) |
|
| ||
34,586 |
| 7.50%, 7/1/29 |
| 36,290 |
63,480 |
| 7.50%, 3/1/31 |
| 66,623 |
46,848 |
| 8.38%, 5/17/20 |
| 50,298 |
28,180 |
| 8.50%, 7/1/18 |
| 30,238 |
16,436 |
| 8.50%, 2/1/25 |
| 17,738 |
13,605 |
| 8.50%, 9/1/25 |
| 14,683 |
53,312 |
| 8.50%, 10/1/30 |
| 57,536 |
|
|
|
| |
|
|
|
| 273,406 |
|
|
|
| |
Federal National Mortgage Association (4.4%) |
|
| ||
11,006 |
| 7.00%, 3/1/07 |
| 11,037 |
81,464 |
| 7.00%, 10/1/11 |
| 84,532 |
29,156 |
| 7.50%, 3/1/31 |
| 30,538 |
28,372 |
| 7.50%, 6/1/32 |
| 29,909 |
13,020 |
| 8.00%, 12/1/20 |
| 13,917 |
22,616 |
| 8.00%, 7/1/26 |
| 24,142 |
26,066 |
| 8.00%, 12/1/27 |
| 27,832 |
67,484 |
| 8.00%, 2/1/31 |
| 72,086 |
52,341 |
| 8.46%, 4/15/26 |
| 57,468 |
39,954 |
| 9.50%, 5/1/27 |
| 44,454 |
70,172 |
| 9.50%, 11/1/30 |
| 75,694 |
13,884 |
| 9.75%, 1/15/13 |
| 15,107 |
1,443 |
| 10.00%, 1/1/20 |
| 1,605 |
25,110 |
| 10.00%, 7/1/26 |
| 28,078 |
14,523 |
| 10.25%, 6/15/13 |
| 15,860 |
|
|
|
| |
|
|
|
| 532,259 |
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
13
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
| |
|
|
|
| |
Government National Mortgage Association (3.4%) |
|
| ||
72,144 |
| 7.00%, 7/15/23 |
| 75,966 |
58,374 |
| 7.00%, 12/15/24 |
| 61,847 |
91,620 |
| 7.50%, 7/15/23 |
| 96,996 |
57,263 |
| 8.00%, 3/15/17 |
| 61,286 |
45,666 |
| 8.00%, 6/15/17 |
| 48,874 |
5,641 |
| 9.00%, 6/15/11 |
| 6,109 |
9,636 |
| 9.00%, 6/15/09 |
| 10,133 |
17,437 |
| 9.00%, 11/15/16 |
| 18,875 |
1,838 |
| 9.50%, 5/20/16 |
| 2,008 |
11,261 |
| 9.50%, 9/15/30 |
| 12,563 |
5,120 |
| 9.50%, 9/20/18 |
| 5,622 |
12,739 |
| 9.50%, 2/20/19 |
| 14,021 |
1,592 |
| 11.25%, 10/15/11 |
| 1,758 |
|
|
|
| |
|
|
|
| 416,058 |
|
|
|
| |
|
|
|
|
|
Taxable Municipal Securities (0.1%) |
|
| ||
9,000 |
| Bernalillo Multifamily. Series 1998A, |
|
|
|
| 7.50%, 9/20/20 |
| 9,666 |
|
|
|
| |
|
|
|
|
|
U.S. Government Securities (4.0%) |
|
| ||
|
| U.S. Treasury Strips, zero coupon: |
|
|
225,000 |
| 3.79% effective yield, 8/15/11 |
| 176,571 |
825,000 |
| 5.64% effective yield, 11/15/27 |
| 302,546 |
|
|
|
| |
|
|
|
| 479,117 |
|
|
|
| |
|
|
|
|
|
Total bonds |
|
| 3,777,361 | |
|
|
| ||
(cost: $3,792,756) |
|
| ||
|
|
|
| |
Closed-End Mutual Funds (3.4%) (2) |
|
| ||
6,009 |
| American Select Portfolio |
| 74,512 |
5,403 |
| American Strategic, Inc. Portfolio |
| 57,002 |
15,470 |
| American Strategic, Inc. Portfolio II |
| 167,849 |
10,609 |
| American Strategic, Inc. Portfolio III |
| 113,941 |
|
|
| ||
| ||||
Total closed-end mutual funds |
| 413,304 | ||
|
| |||
(cost: $423,835) |
| |||
|
|
|
| |
Short-Term Securities (0.8%) (2) |
|
| ||
98,000 |
| Sit Money Market Fund, 3.90% (4) |
| 98,000 |
|
| |||
(cost: $98,000) |
| |||
| ||||
Total investments in securities |
|
| ||
(cost: $10,434,409) (5) |
| $12,056,051 | ||
|
|
See accompanying notes to portfolios of investments on page 44.
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
15
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Roger J. Sit, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Dividend Growth Fund posted a +6.37% return for the last six months of 2005, compared to the +5.77% return for the S&P 500 Index. Since the Fund’s inception of 12/31/03, the Fund has generated a two-year cumulative return of +21.35%, ahead the +16.32% return for the S&P 500.
Most equity indices managed to post modest gains in 2005, as the U.S. economy absorbed numerous shocks, including rising oil prices, hurricanes and rising short-term interest rates. U.S. Gross Domestic Product (GDP) is projected to have risen an impressive +3.6% for the full year. Looking ahead, we believe more modest economic growth is in store for 2006, due to the natural maturation of the current economic cycle, along with the lagged impact of higher interest rates and energy costs. We believe that this environment should lead investors to companies that can generate consistent earnings growth and, importantly, those that are increasingly returning capital to shareholders in the form of higher dividends. Dividend increases were broad-based throughout the market in 2005, and the Fund was well positioned to capitalize on this trend. Specifically, based on year-end holdings, the median increase in dividend rate was +16%. Many signs point to further increases in payouts again in 2006.
We believe the Fund’s performance during 2005 reflected its relative stability, as it significantly outperformed during the difficult first half of the year, while providing more modest outperformance as market indices posted above-average gains in the second half. Relative to the S&P 500 Index, the strong six-month return for the Fund was due to stock selection in the energy minerals, producer manufacturing, and utilities sectors. Weak performance of drug company stocks, particularly Abbot Laboratories and Bristol-Myers Squibb, resulted in a negative contribution from the health technology sector over the period.
The Fund’s sector positioning includes overweights in producer manufacturing, process industries, consumer non-durables and energy, with underweights in electronic technology, consumer services and health services. Relative to the S&P 500 Index weighted- average statistics, the Fund has a significantly higher dividend yield, a lower P/E ratio and a lower projected beta. Based on a renewed investor focus on dividend income and growth, we remain optimistic on the prospects for the Fund in the year ahead.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Dividend Growth Fund is to provide current income that exceeds the dividend yield of the S&P 500 Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $11.57 Per Share |
6/30/05: |
| $11.18 Per Share |
|
|
|
Total Net Assets: |
| $19.3 Million |
|
|
|
Weighted Average Market Cap: |
| $67.3 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit |
| S&P |
| ||||||
|
|
|
|
|
|
|
|
|
| ||
3 Month** |
|
| 1.90 | % |
|
| 2.09 | % |
| ||
6 Month** |
|
| 6.37 |
|
|
| 5.77 |
|
| ||
1 Year |
|
| 9.41 |
|
|
| 4.91 |
|
| ||
3 Years |
|
| n/a |
|
|
| n/a |
|
| ||
5 Years |
|
| n/a |
|
|
| n/a |
|
| ||
Inception |
|
| 10.14 |
|
|
| 7.84 |
|
| ||
(12/31/03) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
| Sit |
| S&P |
| ||||||
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| 9.41 | % |
|
| 4.91 | % |
| ||
3 Years |
|
| n/a |
|
|
| n/a |
|
| ||
5 Years |
|
| n/a |
|
|
| n/a |
|
| ||
Inception |
|
| 21.35 |
|
|
| 16.32 |
|
| ||
(12/31/03) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/05 | **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. |
|
|
|
|
(1) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/03) and held until 12/31/05 would have grown to $12,135 in the Fund or $11,632 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| w | General Electric Co. |
| w | Total S.A. |
| w | Procter & Gamble Co. |
| w | United Technologies Corp. |
| w | Kayne Anderson MLP Invest. Co. |
| w | Alliance Capital Mgmt. Hldg., LP |
| w | PepsiCo, Inc. |
| w | Marathon Oil Corp. |
| w | BP p.l.c., A.D.R. |
| w | Citigroup, Inc. |
Total Number of Holdings: 83 |
17
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) | ||
|
|
| ||
Common Stocks (95.3%) (2) |
|
| ||
|
|
| ||
Commercial Services (1.5%) |
|
| ||
5,700 |
| McGraw-Hill Companies, Inc. |
| 294,291 |
|
|
|
| |
Communications (2.7%) |
|
| ||
5,800 |
| AT&T, Inc. |
| 142,042 |
5,600 |
| Global Signal, Inc. |
| 241,696 |
6,600 |
| Vodafone Group, A.D.R. |
| 141,702 |
|
|
|
| |
|
|
|
| 525,440 |
|
|
|
| |
Consumer Non-Durables (9.3%) |
|
| ||
2,600 |
| Colgate-Palmolive Co. |
| 142,610 |
4,600 |
| Diageoplc. |
| 268,180 |
2,900 |
| General Mills, Inc. |
| 143,028 |
4,000 |
| Kimberly-Clark Corp. |
| 238,600 |
6,500 |
| PepsiCo, Inc. |
| 384,020 |
8,300 |
| Procter & Gamble Co. |
| 480,404 |
2,500 |
| VF Corp. |
| 138,350 |
|
|
|
| |
|
|
|
| 1,795,192 |
|
|
|
| |
Electronic Technology (4.7%) |
|
| ||
8,100 |
| Hewlett-Packard Co. |
| 231,903 |
11,500 |
| Intel Corp. |
| 287,040 |
10,600 |
| Motorola, Inc. |
| 239,454 |
8,000 |
| Nokia Corp., A.D.R. |
| 146,400 |
|
|
|
| |
|
|
|
| 904,797 |
|
|
|
| |
Energy Minerals (9.3%) |
|
| ||
5,700 |
| BP p.l.c., A.D.R. |
| 366,054 |
6,900 |
| Hugoton Royalty Trust |
| 261,579 |
6,150 |
| Marathon Oil Corp. |
| 374,966 |
3,700 |
| Occidental Petroleum Corp. |
| 295,556 |
3,900 |
| Total S.A. |
| 492,960 |
|
|
|
| |
|
|
|
| 1,791,115 |
|
|
|
| |
Finance (16.9%) |
|
| ||
3,600 |
| ACE, Ltd. |
| 192,384 |
7,100 |
| Alliance Capital Mgmt. Hldg., LP |
| 401,079 |
3,900 |
| AMB Property Corp. |
| 191,763 |
5,000 |
| Bank Of America Corp. |
| 230,750 |
1,500 |
| Chubb Corp. |
| 146,475 |
7,400 |
| Citigroup, Inc. |
| 359,122 |
11,700 |
| Gladstone Investment Corp. |
| 159,003 |
4,800 |
| HCC Insurance Holdings, Inc. |
| 142,464 |
6,850 |
| J.P. Morgan Chase & Co. |
| 271,877 |
2,700 |
| Lincoln National Corp. |
| 143,181 |
1,300 |
| Prudential Financial, Inc. |
| 95,147 |
3,300 |
| UBS AG |
| 313,995 |
5,500 |
| Wachovia Corp. |
| 290,730 |
5,400 |
| Wells Fargo Co. |
| 339,282 |
|
|
|
| |
|
|
|
| 3,277,252 |
|
|
|
| |
Health Services (0.7%) |
|
| ||
5,200 |
| Owens & Minor, Inc. |
| 143,156 |
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer Market Value ($)(1) | |||
|
|
| ||
Health Technology (11.7%) |
|
| ||
6,400 |
| Abbott Laboratories |
| 252,352 |
5,000 |
| Becton, Dickinson & Co. |
| 300,400 |
6,900 |
| Bristol-Myers Squibb Co. |
| 158,562 |
2,900 |
| C.R. Bard, Inc. |
| 191,168 |
6,050 |
| Eli Lilly and Co. |
| 342,369 |
4,800 |
| Johnson & Johnson, Inc. |
| 288,480 |
6,000 |
| PerkinElmer, Inc. |
| 141,360 |
10,600 |
| Pfizer, Inc. |
| 247,192 |
7,300 |
| Wyeth |
| 336,311 |
|
|
|
| |
|
|
|
| 2,258,194 |
|
|
|
| |
Industrial Services (4.0%) |
|
| ||
6,100 |
| BJ Services Co. |
| 223,687 |
4,600 |
| Granite Construction, Inc. |
| 165,186 |
2,750 |
| Kinder Morgan, Inc. |
| 252,863 |
3,800 |
| Precision Drilling Trust |
| 125,400 |
|
|
|
| |
|
|
|
| 767,136 |
|
|
|
| |
Non-Energy Minerals (1.2%) |
|
| ||
1,000 |
| Freeport-McMoran Copper & Gold, Corp. |
| 53,800 |
2,700 |
| Southern Peru Copper Corp. |
| 180,846 |
|
|
|
| |
|
|
|
| 234,646 |
|
|
|
| |
Process Industries (4.6%) |
|
| ||
3,900 |
| Air Products and Chemicals, Inc. |
| 230,841 |
5,100 |
| Dow Chemical Co. |
| 223,482 |
4,300 |
| E.I. Du Pont de Nemours & Co. |
| 182,750 |
5,700 |
| Sherwin-Williams Co. |
| 258,894 |
|
|
|
| |
|
|
|
| 895,967 |
|
|
|
| |
Producer Manufacturing (15.3%) |
|
| ||
6,450 |
| American Power Conversion Corp. |
| 141,900 |
3,900 |
| Anixter International, Inc. |
| 152,568 |
4,300 |
| Autoliv, Inc. |
| 195,306 |
4,100 |
| Caterpillar, Inc. |
| 236,857 |
1,900 |
| Cooper Industries, Ltd. |
| 138,700 |
3,900 |
| Emerson Electric Co. |
| 291,330 |
1,200 |
| General Dynamics Corp. |
| 136,860 |
21,000 |
| General Electric Co. |
| 736,050 |
1,900 |
| ITT Industries, Inc. |
| 195,358 |
1,800 |
| Lockheed Martin Corp. |
| 114,534 |
7,900 |
| United Technologies Corp. |
| 441,689 |
2,350 |
| 3M Co. |
| 182,125 |
|
|
|
| |
|
|
|
| 2,963,277 |
|
|
|
| |
Retail Trade (3.6%) |
|
| ||
4,500 |
| Best Buy Co., Inc. |
| 195,660 |
5,800 |
| Claire’s Stores, Inc. |
| 169,476 |
3,900 |
| Costco Wholesale Corp. |
| 192,933 |
5,000 |
| Deb Shops, Inc. |
| 148,650 |
|
|
|
| |
|
|
|
| 706,719 |
|
|
|
|
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) |
| ||
|
|
|
|
| ||
|
|
|
|
| ||
Technology Services (2.4%) |
|
|
|
| ||
5,500 |
| Accenture, Ltd. |
|
| 158,785 |
|
3,500 |
| Automatic Data Processing, Inc. |
|
| 160,615 |
|
7,022 |
| Syntel, Inc. |
|
| 146,268 |
|
|
|
|
|
| ||
|
|
|
|
| 465,668 |
|
|
|
|
|
| ||
Transportation (3.2%) |
|
|
|
| ||
2,100 |
| Burlington Northern Santa Fe Corp. |
|
| 148,722 |
|
8,800 |
| Eagle Bulk Shipping, Inc. |
|
| 140,096 |
|
3,900 |
| Tsakos Energy Navigation, Ltd. |
|
| 143,013 |
|
2,450 |
| United Parcel Service, Inc. |
|
| 184,117 |
|
|
|
|
|
| ||
|
|
|
|
| 615,948 |
|
|
|
|
|
| ||
Utilities (4.2%) |
|
|
|
| ||
6,600 |
| Equitable Resources, Inc. |
|
| 242,154 |
|
5,400 |
| Exelon Corp. |
|
| 286,956 |
|
5,600 |
| TXU Corp. |
|
| 281,064 |
|
|
|
|
|
| ||
|
|
|
|
| 810,174 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 18,448,972 |
| ||
|
|
|
|
| ||
(cost: $16,900,697) |
|
|
|
| ||
|
|
|
|
|
|
|
Closed-End Mutual Funds (2.8%) (2) |
|
|
|
| ||
17,950 |
| Kayne Anderson MLP Invest. Co. |
|
| 436,903 |
|
3,800 |
| Tortoise Energy Infrastructure Corp. |
|
| 102,714 |
|
|
|
|
|
| ||
|
|
|
|
| ||
Total closed-end mutual funds |
|
| 539,617 |
| ||
|
|
|
|
| ||
(cost: $562,082) |
|
|
| |||
|
|
|
|
|
|
|
Short-Term Securities (1.5%) (2) |
|
|
|
| ||
293,000 |
| Sit Money Market Fund, 3.90% (4) |
|
| 293,000 |
|
|
|
|
|
| ||
(cost: $293,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
|
|
|
| ||
(cost: $17,755,779) (5) |
| $ | 19,281,589 |
| ||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
19
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, Roger J. Sit, Ronald D. Sit |
|
|
|
|
|
|
|
|
The Sit Large Cap Growth Fund’s six-month return was +8.57%, compared to the +7.11% return for the Russell 1000® Growth Index. The S&P 500 index return for the period was +5.77%. For the calendar year 2005, the Fund’s return of +9.59% compared favorably to the +5.27% and +4.91% gains for the Russell 1000® Growth Index and the S&P 500 Index, respectively.
Equity markets posted solid gains during the second half of the year, overcoming numerous obstacles including higher oil prices, higher short-term rates, and the devastating impact from hurricanes Katrina, Rita and Wilma. Economic activity remained robust, both in the U.S. and abroad, lifting corporate profits and providing critical support to the equity markets. Looking ahead, we believe fundamentals argue for another year of modest gains for stocks in 2006. While overall profit growth is likely to slow down from the robust double-digit rates experienced over the past year, stock valuations may be supported by a less active Federal Reserve in 2006. Importantly, growth stocks outperformed value stocks in the final three quarters of 2005, and we believe this trend is likely to continue in the year ahead. Based on our expectations of slower economic growth and a somewhat weaker US dollar, we believe large growth companies with international exposure will attract investor attention. This is consistent with our large commitment to “traditional” growth sectors, particularly health care and technology, along with our ongoing overweight in energy.
Relative to the S&P 500 Index return over the past six months, the Fund benefited from strong stock selection in energy minerals (Valero and Suncor positions each rose over +30% during the period) and health technology (Elan and Amgen rose +104% and +30%, respectively). Conversely, three of our larger holdings in the electronic technology sector (Dell Computer, Cisco Systems and Analog Devices) each declined in price over the past six months, leading to this sector’s underperformance within the Fund.
Given the strong earnings outlook and attractive valuations of companies held in the Fund, we remain enthusiastic about the Fund’s prospects in the year ahead.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $37.14 Per Share |
6/30/05: |
| $34.27 Per Share |
| ||
Total Net Assets: |
| $82.4 Million |
| ||
Weighted Average Market Cap: |
| $74.9 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit |
| Russell |
| S&P 500 |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| 2.87 | % |
| 2.98 | % |
| 2.09 | % |
| |
6 Month** |
| 8.57 |
|
| 7.11 |
|
| 5.77 |
|
| |
1 Year |
| 9.59 |
|
| 5.27 |
|
| 4.91 |
|
| |
5 Years |
| -4.75 |
|
| -3.58 |
|
| 0.54 |
|
| |
10 Year |
| 6.66 |
|
| 6.73 |
|
| 9.07 |
|
| |
Inception*** |
| 11.12 |
|
| 12.06 |
|
| 13.54 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit |
| Russell |
| S&P 500 |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| 9.59 | % |
| 5.27 | % |
| 4.91 | % |
| |
5 Year |
| -21.62 |
|
| -16.67 |
|
| 2.75 |
|
| |
10 Year |
| 90.63 |
|
| 91.83 |
|
| 138.33 |
|
| |
Inception*** |
| 1072.76 |
|
| 1328.20 |
|
| 1838.58 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 12/31/05 | **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. ***On 6/6/93, the Fund’s investment objective changed to allow for a portfolio of 100% stocks. Prior to that time, the portfolio was required to contain no more than 80% stocks. | |
(1) | An unmanaged index that measures the performance of those Russell 1000 companies (the largest 1,000 U.S. companies by capitalization) with higher price-to-book ratios and higher forecasted growth values. Since 1999, the S&P 500 Index was used to compare performance; however the Adviser believes the Russell 1000® Growth Index more accurately reflects the Fund’s growth investment objectives and strategies and therefore will be used to compare the Fund’s performance. |
(2) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have grown to $19,063 in the Fund or $19,183 in the Russell 1000® Growth Index and $23,833 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
w | Valero Energy Corp. |
w | General Electric Co. |
w | Amgen, Inc. |
w | Microsoft Corp. |
w | PepsiCo, Inc. |
w | Target Corp. |
w | UnitedHealth Group, Inc. |
w | The Goldman Sachs Group, Inc. |
w | American International Group, Inc. |
w | Genentech, Inc. |
|
|
Total Number of Holdings: 88 |
21
|
|
|
|
|
|
|
|
|
|
| Sit Large Cap Growth Fund |
| ||
|
|
| ||
| Portfolio of Investments - December 31, 2005 (Unaudited) |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (92.8%) (2) |
|
|
| ||
|
|
|
| ||
Communications (3.1%) |
|
|
| ||
40,400 |
| Crown Castle Intl. Corp. (3) |
| 1,087,164 |
|
27,251 |
| Sprint Nextel Corp. |
| 636,583 |
|
40,200 |
| Vodafone Group, A.D.R. |
| 863,094 |
|
|
|
|
|
| |
|
|
|
| 2,586,841 |
|
|
|
|
|
| |
Consumer Durables (0.4%) |
|
|
| ||
5,800 |
| Electronic Arts, Inc. (3) |
| 303,398 |
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer Non-Durables (3.4%) |
|
|
| ||
27,000 |
| PepsiCo, Inc. |
| 1,595,160 |
|
21,000 |
| Procter & Gamble Co. |
| 1,215,480 |
|
|
|
|
|
| |
|
|
|
| 2,810,640 |
|
|
|
|
|
| |
Consumer Services (4.5%) |
|
|
| ||
19,500 |
| Comcast Corp. (3) |
| 506,220 |
|
7,600 |
| Harrah’s Entertainment, Inc. |
| 541,804 |
|
12,900 |
| Marriott International, Inc. |
| 863,913 |
|
22,100 |
| News Corp. |
| 343,655 |
|
15,100 |
| Royal Caribbean Cruises, Ltd. |
| 680,406 |
|
15,000 |
| Starbucks Corp. (3) |
| 450,150 |
|
19,400 |
| Time Warner, Inc. |
| 338,336 |
|
|
|
|
|
| |
|
|
|
| 3,724,484 |
|
|
|
|
|
| |
Electronic Technology (10.7%) |
|
|
| ||
30,400 |
| Analog Devices, Inc. |
| 1,090,448 |
|
23,000 |
| Applied Materials, Inc. |
| 412,620 |
|
79,400 |
| Cisco Systems, Inc. (3) |
| 1,359,328 |
|
27,000 |
| Dell Computer Corp. (3) |
| 809,730 |
|
97,100 |
| EMC Corp. (3) |
| 1,322,502 |
|
48,100 |
| Intel Corp. |
| 1,200,576 |
|
18,000 |
| Juniper Networks, Inc. (3) |
| 401,400 |
|
43,200 |
| Nokia Corp., A.D.R. |
| 790,560 |
|
27,200 |
| Qualcomm, Inc. |
| 1,171,776 |
|
8,900 |
| Texas Instruments, Inc. |
| 285,423 |
|
|
|
|
|
| |
|
|
|
| 8,844,363 |
|
|
|
|
|
| |
Energy Minerals (9.9%) |
|
|
| ||
8,800 |
| ConocoPhillips Co. |
| 511,984 |
|
18,000 |
| Murphy Oil Corp. |
| 971,820 |
|
16,000 |
| Occidental Petroleum Corp. |
| 1,278,080 |
|
16,900 |
| Southwestern Energy Co. (3) |
| 607,386 |
|
18,300 |
| Suncor Energy, Inc. |
| 1,155,279 |
|
46,800 |
| Valero Energy Corp. |
| 2,414,880 |
|
26,766 |
| XTO Energy, Inc. |
| 1,176,098 |
|
|
|
|
|
| |
|
|
|
| 8,115,527 |
|
|
|
|
|
| |
Finance (11.9%) |
|
|
| ||
14,200 |
| American Express Co. |
| 730,732 |
|
21,162 |
| American International Group, Inc. | 1,443,883 |
| |
14,400 |
| Bank of America Corp. |
| 664,560 |
|
4,100 |
| Chubb Corp. |
| 400,365 |
|
26,700 |
| Citigroup, Inc. |
| 1,295,751 |
|
13,500 |
| Franklin Resources, Inc. |
| 1,269,135 |
|
|
|
|
|
|
Quantity |
| Name of Issuer Market Value ($)(1) | ||
|
|
|
|
|
10,200 |
| J.P. Morgan Chase & Co. |
| 404,838 |
13,200 |
| Prudential Financial, Inc. |
| 966,108 |
11,500 |
| The Goldman Sachs Group, Inc. | 1,468,665 | |
18,500 |
| Wells Fargo Co. |
| 1,162,355 |
|
|
|
| |
|
|
|
| 9,806,392 |
|
|
|
| |
Health Services (2.9%) |
|
| ||
25,300 |
| UnitedHealth Group, Inc. |
| 1,572,142 |
10,200 |
| WellPoint, Inc. (3) |
| 813,858 |
|
|
|
| |
|
|
|
| 2,386,000 |
|
|
|
| |
Health Technology (14.8%) |
|
| ||
14,500 |
| Abbott Laboratories |
| 571,735 |
22,800 |
| Amgen, Inc. (3) |
| 1,798,008 |
9,000 |
| Boston Scientific Corp. (3) |
| 220,410 |
11,400 |
| Celgene Corp. (3) |
| 738,720 |
31,650 |
| Elan Corp., A.D.R. (3) |
| 440,885 |
18,200 |
| Eli Lilly and Co. |
| 1,029,938 |
15,000 |
| Genentech, Inc. (3) |
| 1,387,500 |
8,300 |
| Gilead Sciences, Inc. (3) |
| 436,829 |
14,750 |
| Johnson & Johnson |
| 886,475 |
20,400 |
| Medtronic, Inc. |
| 1,174,428 |
42,225 |
| Pfizer, Inc. |
| 984,687 |
26,200 |
| St. Jude Medical, Inc. (3) |
| 1,315,240 |
7,600 |
| Stryker Corp. |
| 337,668 |
19,800 |
| Teva Pharmaceutical, Ltd., A.D.R. |
| 851,598 |
|
|
|
| |
|
|
|
| 12,174,121 |
|
|
|
| |
Industrial Services (4.3%) |
|
| ||
13,400 |
| Nabors Industries, Ltd. (3) |
| 1,015,050 |
16,100 |
| Noble Corp. |
| 1,135,694 |
14,200 |
| Schlumberger, Ltd. |
| 1,379,530 |
|
|
|
| |
|
|
|
| 3,530,274 |
|
|
|
| |
Non-Energy Minerals (0.7%) |
|
| ||
5,500 |
| Freeport-McMoRan Copper & Gold, Inc. | 295,900 | |
4,500 |
| Southern Copper Corp. |
| 301,410 |
|
|
|
| |
|
|
|
| 597,310 |
|
|
|
| |
Process Industries (1.3%) |
|
| ||
9,900 |
| Air Products and Chemicals, Inc. |
| 585,981 |
11,200 |
| Dow Chemical Co. |
| 490,784 |
|
|
|
| |
|
|
|
| 1,076,765 |
|
|
|
| |
Producer Manufacturing (7.9%) |
|
| ||
15,000 |
| Caterpillar, Inc. |
| 866,550 |
68,500 |
| General Electric Co. |
| 2,400,925 |
12,200 |
| ITT Industries, Inc. |
| 1,254,404 |
9,500 |
| 3M Co. |
| 736,250 |
5,000 |
| The Boeing Co. |
| 351,200 |
15,800 |
| United Technologies Corp. |
| 883,378 |
|
|
|
| |
|
|
|
| 6,492,707 |
|
|
|
| |
Retail Trade (5.9%) |
|
| ||
15,675 |
| Best Buy Co., Inc. |
| 681,549 |
13,700 |
| CVS Corp. |
| 361,954 |
8,000 |
| eBay, Inc. (3) |
| 346,000 |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
| |
12,400 |
| J.C. Penney Co., Inc. |
|
| 689,440 |
|
18,100 |
| Lowe’s Companies, Inc. |
|
| 1,206,546 |
|
28,600 |
| Target Corp. |
|
| 1,572,142 |
|
|
|
|
|
| ||
|
|
|
|
| 4,857,631 |
|
|
|
|
|
| ||
Technology Services (7.5%) |
|
|
|
| ||
18,500 |
| Adobe Systems, Inc. |
|
| 683,760 |
|
7,200 |
| Automatic Data Processing, Inc. |
|
| 330,408 |
|
11,500 |
| First Data Corp. |
|
| 494,615 |
|
2,400 |
| Google, Inc. (3) |
|
| 995,664 |
|
66,100 |
| Microsoft Corp. |
|
| 1,728,515 |
|
17,100 |
| SAP AG |
|
| 770,697 |
|
22,236 |
| Symantec Corp. (3) |
|
| 389,130 |
|
19,800 |
| Yahoo!, Inc. (3) |
|
| 775,764 |
|
|
|
|
|
| ||
|
|
|
|
| 6,168,553 |
|
|
|
|
|
| ||
Transportation (2.7%) |
|
|
|
| ||
13,800 |
| Burlington Northern Sante Fe Corp. |
|
| 977,316 |
|
9,800 |
| United Parcel Service, Inc. |
|
| 736,470 |
|
5,900 |
| UTI Worldwide, Inc. |
|
| 547,756 |
|
|
|
|
|
| ||
|
|
|
|
| 2,261,542 |
|
|
|
|
|
| ||
Utilities (0.9%) |
|
|
|
| ||
21,200 |
| Equitable Research, Inc. |
|
| 777,828 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 76,514,376 |
| ||
|
|
| ||||
(cost: $61,129,075) |
|
|
|
| ||
|
|
|
|
|
|
|
Short-Term Securities (6.7%) (2) |
|
|
|
| ||
5,501,000 |
| Sit Money Market Fund, 3.90% (4) |
|
| 5,501,000 |
|
|
|
|
|
| ||
(cost: $5,501,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
|
|
|
| ||
(cost: $66,630,075) (5) |
| $ | 82,015,376 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
23
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Matt T. Loucks, Robert W. Sit |
|
|
|
|
|
|
|
|
The Sit Mid Cap Growth Fund’s six-month return was +13.12%, compared to +10.22% for the Russell Mid Cap® Growth Index. The S&P Mid Cap Index Fund rose +8.38% during the period. For the 2005 calendar year, the Fund returned +15.27%, ahead of the +12.10% return for the Russell Midcap® Growth Index and the +12.55% for the S&P Mid Cap Index.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of growth companies with capitalizations of $2 billion to $15 billion at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $12.76 Per Share |
6/30/05: |
| $11.28 Per Share |
|
|
|
Total Net Assets: |
| $218.0 Million |
|
|
|
Weighted Average Market Cap: |
| $11.2 Billion |
|
|
|
|
PORTFOLIO STRUCTURE - BY SECTOR |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit |
| Russell |
| S&P |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
|
| 3.15 | % |
|
| 3.44 | % |
|
| 3.34 | % |
| ||
6 Month** |
|
| 13.12 |
|
|
| 10.22 |
|
|
| 8.38 |
|
| ||
1 Year |
|
| 15.27 |
|
|
| 12.10 |
|
|
| 12.55 |
|
| ||
5 Year |
|
| -4.05 |
|
|
| 1.38 |
|
|
| 8.60 |
|
| ||
10 Year |
|
| 7.36 |
|
|
| 9.27 |
|
|
| 14.36 |
|
| ||
Inception |
|
| 13.83 |
|
|
| n/a |
|
|
| 16.45 |
|
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit |
| Russell |
| S&P |
| |||||||
| |||||||||||||||
1 Year |
|
| 15.27 | % |
|
| 12.10 | % |
|
| 12.55 | % |
| ||
5 Year |
|
| -18.66 |
|
|
| 7.09 |
|
|
| 51.06 |
|
| ||
10 Year |
|
| 103.45 |
|
|
| 142.61 |
|
|
| 282.48 |
|
| ||
Inception |
|
| 1955.57 |
|
|
| n/a |
|
|
| 3402.12 |
|
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
*As of 12/31/05 |
|
| **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. |
|
|
(1) | An unmanaged index that measures the performance of those Russell Midcap® companies with higher price-to-book ratios and higher forecasted growth values. The companies are also included in the Russell 1000® Growth Index. Since 1999, the S&P MidCap 400 Index was used to compare performance; however the Adviser believes the Russell Midcap® Growth Index more accurately reflects the Fund’s growth investment objectives and strategies and therefore will be used to compare the Fund’s performance. |
(2) | An unmanaged index which measures to performance of 400 widely held common stocks of mid cap companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have grown to $20,345 in the Fund, or $24,261 in the Russell Mid Cap® Growth Index and $38,248 in the S&P MidCap 400 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
w | Celgene Corp. |
w | XTO Energy, Inc. |
w | Valero Energy Corp. |
w | Chico’s FAS, Inc. |
w | Coach, Inc. |
w | Caremark Rx, Inc. |
w | Legg Mason, Inc. |
w | Adobe Systems, Inc. |
w | TCF Financial Corp. |
w | Broadcom Corp. |
|
|
25
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
| ||||
Common Stocks (95.9%) (2) |
|
| ||
Commercial Services (1.0%) |
|
| ||
20,900 |
| Getty Images, Inc. (3) |
| 1,865,743 |
|
|
|
| |
|
|
|
|
|
Communications (2.6%) |
|
| ||
103,200 |
| American Tower Corp. (3) |
| 2,796,720 |
97,450 |
| Nextel Partners, Inc. (3) |
| 2,722,753 |
|
|
|
| |
|
|
|
| 5,519,473 |
|
|
|
| |
Consumer Durables (1.3%) |
|
| ||
17,300 |
| Electronic Arts, Inc. (3) |
| 904,963 |
57,100 |
| Scientific Games Corp. (3) |
| 1,557,688 |
|
|
|
| |
|
|
|
| 2,462,651 |
|
|
|
| |
Consumer Non-Durables (2.3%) | ||||
150,000 |
| Coach, Inc. (3) |
| 5,001,000 |
|
|
|
| |
|
|
|
|
|
Consumer Services (3.9%) |
|
| ||
28,800 |
| Harrah’s Entertainment, Inc. |
| 2,053,152 |
30,550 |
| Marriott International, Inc. |
| 2,045,933 |
27,900 |
| Royal Caribbean Cruises, Ltd. |
| 1,257,174 |
31,000 |
| Station Casinos, Inc. |
| 2,101,800 |
39,200 |
| XM Satellite Radio Holdings, Inc. (3) |
| 1,069,376 |
|
|
|
| |
|
|
|
| 8,527,435 |
|
|
|
| |
Electronic Technology (13.0%) |
|
| ||
104,950 |
| Analog Devices, Inc. |
| 3,764,557 |
41,700 |
| Apple Computer, Inc. (3) |
| 2,997,813 |
109,000 |
| ATI Technologies, Inc. (3) |
| 1,851,910 |
81,850 |
| Broadcom Corp. (3) |
| 3,859,227 |
125,850 |
| Juniper Networks, Inc. (3) |
| 2,806,455 |
33,500 |
| KLA-Tencor Corp. |
| 1,652,555 |
47,100 |
| Kronos, Inc. (3) |
| 1,971,606 |
67,000 |
| Lam Research Corp. (3) |
| 2,390,560 |
67,000 |
| Network Appliance, Inc. (3) |
| 1,809,000 |
227,650 |
| Sonus Networks, Inc. (3) |
| 846,858 |
30,450 |
| Trimble Havigation, Ltd. (3) |
| 1,080,671 |
129,883 |
| Xilinx, Inc. |
| 3,274,350 |
|
|
|
| |
|
|
|
| 28,305,562 |
|
|
|
| |
Energy Minerals (11.3%) | ||||
45,000 |
| Apache Corp. |
| 3,083,400 |
64,200 |
| Murphy Oil Corp. |
| 3,466,158 |
88,000 |
| Southwestern Energy Corp. (3) |
| 3,162,720 |
50,700 |
| Tesoro Corp. |
| 3,120,585 |
98,972 |
| Valero Energy Corp. |
| 5,106,955 |
145,416 |
| XTO Energy, Inc. |
| 6,389,579 |
|
|
|
| |
|
|
|
| 24,329,397 |
|
|
|
| |
Finance (8.1%) |
|
| ||
39,550 |
| Ace, Ltd. |
| 2,113,552 |
1,000 |
| CBOT Holdings, Inc. (3) |
| 93,760 |
68,800 |
| HCC Insurance Holdings, Inc. |
| 2,041,984 |
44,950 |
| Hudson City Bancorp, Inc. |
| 544,794 |
37,250 |
| Legg Mason, Inc. |
| 4,458,452 |
17,400 |
| Lehman Brothers Holdings, Inc. |
| 2,230,158 |
|
|
|
|
|
|
|
|
|
|
|
| Quantity | Name of Issuer |
| Market Value ($)(1) | |
| |||||
144,400 |
| TCF Financial Corp. |
| 3,919,016 | |
31,350 |
| T. Rowe Price Group, Inc. |
| 2,258,141 | |
|
|
|
| ||
|
|
|
| 17,659,857 | |
|
|
|
| ||
Health Services (5.6%) | |||||
94,950 |
| Caremark Rx, Inc. (3) |
| 4,917,460 | |
44,700 |
| Community Health Systems, Inc. (3) |
| 1,713,798 | |
34,800 |
| Laboratory Corp. (3) |
| 1,873,980 | |
32,300 |
| Stericycle, Inc. (3) |
| 1,901,824 | |
22,269 |
| WellPoint, Inc. (3) |
| 1,776,875 | |
|
|
|
| ||
|
|
|
| 12,183,937 | |
|
|
|
| ||
Health Technology (12.7%) | |||||
22,100 |
| Alcon, Inc. |
| 2,864,160 | |
34,500 |
| Biosite Diagnostics, Inc. (3) |
| 1,942,005 | |
103,300 |
| Celgene Corp. (3) |
| 6,693,840 | |
178,750 |
| Elan Corp., A.D.R. (3) |
| 2,489,987 | |
22,500 |
| Gilead Sciences, Inc. (3) |
| 1,184,175 | |
12,900 |
| Intuitive Surgical, Inc. (3) |
| 1,512,783 | |
45,500 |
| Kyphon, Inc. (3) |
| 1,857,765 | |
39,300 |
| Respironics, Inc. (3) |
| 1,456,851 | |
57,000 |
| Teva Pharmaceutical Industries, A.D.R. |
| 2,451,570 | |
71,450 |
| Thermo Electron Corp. (3) |
| 2,152,789 | |
60,000 |
| Varian Medical Systems, Inc. (3) |
| 3,020,400 | |
|
|
|
| ||
|
|
|
| 27,626,325 | |
|
|
|
| ||
Industrial Services (6.8%) |
|
| |||
66,000 |
| BJ Services Co. |
| 2,420,220 | |
30,900 |
| CARBO Ceramics, Inc. |
| 1,746,468 | |
87,100 |
| Chicago Bridge & Iron Co., A.D.R. |
| 2,195,791 | |
34,950 |
| Nabors Industries, Ltd. (3) |
| 2,647,463 | |
41,700 |
| Noble Corp. |
| 2,941,518 | |
75,000 |
| Smith International, Inc. |
| 2,783,250 | |
|
|
|
| ||
|
|
|
| 14,734,710 | |
|
|
|
| ||
Non-Energy Minerals (0.8%) |
|
| |||
23,300 |
| Allegheny Technologies, Inc. |
| 840,664 | |
12,200 |
| Southern Copper Corp. |
| 817,156 | |
|
|
|
| ||
|
|
|
| 1,657,820 | |
|
|
|
| ||
Producer Manufacturing (7.0%) |
|
| |||
42,500 |
| AMETEK, Inc. |
| 1,807,950 | |
78,400 |
| Anixter International, Inc. (3) |
| 3,067,008 | |
32,850 |
| ITT Industries, Inc. |
| 3,377,637 | |
19,100 |
| Jacobs Engineering Group, Inc. (3) |
| 1,296,317 | |
54,000 |
| Pentair, Inc. |
| 1,864,080 | |
53,400 |
| Precision Castparts Corp. |
| 2,766,654 | |
18,900 |
| Rockwell Automation, Inc. |
| 1,118,124 | |
|
|
|
| ||
|
|
|
| 15,297,770 | |
|
|
|
| ||
Retail Trade (5.6%) |
|
| |||
42,075 |
| Best Buy Co., Inc. |
| 1,829,421 | |
115,800 |
| Chico’s FAS, Inc. (3) |
| 5,087,094 | |
59,000 |
| PETsMART, Inc. |
| 1,513,940 | |
85,575 |
| Staples, Inc. |
| 1,943,408 | |
22,000 |
| Whole Foods Market, Inc. |
| 1,702,580 | |
|
|
|
| ||
|
|
|
| 12,076,443 | |
|
|
|
|
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) | ||
|
|
|
| |
Technology Services (12.3%) |
|
| ||
109,190 |
| Adobe Systems, Inc. |
| 4,035,662 |
47,900 |
| Amdocs, Ltd. (3) |
| 1,317,250 |
66,400 |
| Autodesk, Inc. |
| 2,851,880 |
89,000 |
| Business Objects, A.D.R. (3) |
| 3,596,490 |
95,100 |
| Ceridian Corp. (3) |
| 2,363,235 |
65,100 |
| Cognizant Tech. Solutions Corp. (3) |
| 3,277,785 |
53,000 |
| Cognos, Inc. (3) |
| 1,839,630 |
96,200 |
| McAfee, Inc. (3) |
| 2,609,906 |
40,550 |
| NAVTEQ (3) |
| 1,778,929 |
26,700 |
| Paychex, Inc. |
| 1,017,804 |
88,757 |
| Symantec Corp. (3) |
| 1,553,248 |
27,600 |
| VeriSign, Inc. (3) |
| 604,992 |
|
|
|
| |
|
|
|
| 26,846,811 |
|
|
|
| |
Transportation (1.6%) |
|
| ||
91,500 |
| C.H. Robinson Worldwide, Inc. |
| 3,388,245 |
17,000 |
| UTI Worldwide, Inc. |
| 1,578,280 |
|
|
|
| |
|
|
|
| 4,966,525 |
|
|
|
| |
|
|
|
|
|
Total common stocks |
|
| ||
(cost: $141,025,774) |
| 209,061,459 | ||
|
|
|
| |
|
|
|
|
|
Short-Term Securities (4.2%) (2) |
|
| ||
9,235,000 |
| Sit Money Market Fund, 3.90% (4) |
| 9,235,000 |
|
|
|
| |
(cost: $9,235,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
|
| ||
(cost: $150,260,774) (5) |
| $218,296,459 | ||
|
|
See accompanying notes to portfolios of investments on page 44.
27
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Janet K. Kinzler, Tasha M. Murdoff |
|
|
|
|
|
|
|
|
The Sit International Growth Fund outperformed, returning +17.55% for the last half of 2005 compared with +15.27% for the MSCI EAFE Growth Index. The outperformance was a result of positive stock selection from both a country and industry perspective. Energy led the way followed closely by domestic Japanese companies in the retailing and banking industries. Additionally, the Fund’s currency exposure (underweight in European denominated assets and overweight in dollar-pegged/related assets) positively impacted relative performance.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $14.40 Per Share |
6/30/05: |
| $12.31 Per Share |
|
|
|
Total Net Assets: |
| $31.9 Million |
|
|
|
Weighted Average Market Cap: |
| $55.6 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| 4.71 | % |
|
| 4.34 | % |
|
| 4.08 | % |
| ||
6 Month** |
|
| 17.55 |
|
|
| 15.27 |
|
|
| 14.88 |
|
| ||
1 Year |
|
| 14.67 |
|
|
| 13.28 |
|
|
| 13.54 |
|
| ||
5 Year |
|
| -4.83 |
|
|
| 1.92 |
|
|
| 4.55 |
|
| ||
10 Year |
|
| 1.73 |
|
|
| 3.33 |
|
|
| 5.84 |
|
| ||
Inception |
|
| 5.00 |
|
|
| 4.16 |
|
|
| 6.58 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| 14.67 | % |
|
| 13.28 | % |
|
| 13.54 | % |
| ||
5 Year |
|
| -21.94 |
|
|
| 9.96 |
|
|
| 24.94 |
|
| ||
10 Year |
|
| 18.71 |
|
|
| 38.73 |
|
|
| 76.34 |
|
| ||
Inception |
|
| 99.75 |
|
|
| 78.28 |
|
|
| 146.70 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 12/31/05. | **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. |
|
|
(1) | An unmanaged index that measures the performance of over 1,100 international companies within the stock markets of Europe, Australasian and Far East. Since the Fund’s inception, the MSCI EAFE Index was used to compare performance; however the Adviser believes the MSCI EAFE Growth Index more accurately reflects the Fund’s growth investment objectives and strategies and therefore will be used to compare the Fund’s performance. |
(2) | An unmanaged index which measures the performance of international companies screened for liquidity, cross ownership, and industry representation within the stock markets of Europe, Australia, New Zealand and the Far East. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have grown to $11,871 in the Fund, or $13,873 in the MSCI EAFE Growth Index and $17,634 in the MSCI EAFE Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
29
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
w | Sumitomo Financial Group |
w | BHP Billiton, Ltd. |
w | Rio Tinto, A.D.R. |
w | Mitsubishi UFJ Financial Group, Inc. |
w | Yamada Denki Co. |
w | Novartis, A.G. |
w | Nestle, SA |
w | NII Holdings, Inc. |
w | Roche Holdings, A.G. |
w | UBS, A.G. |
| Total Number of Holdings: 92 |
|
|
|
|
| |
Quantity | Name of Issuer | Market Value ($)(1) | |||
|
|
|
| ||
Common Stocks (97.2%) (2) |
|
| |||
Africa/ Middle East (3.3%) |
|
| |||
Israel (3.3%) |
|
| |||
13,400 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 368,500 | |
11,600 |
| Lipman Electronic, A.D.R. (Electronic Tech.) |
| 269,932 | |
9,600 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) |
| 412,896 | |
|
|
|
| ||
|
|
|
| 1,051,328 | |
|
|
|
| ||
Asia (40.9%) |
|
| |||
Australia (6.7%) |
|
| |||
17,444 |
| Australia and New Zealand Banking Group (Finance) |
| 306,466 | |
55,386 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 924,299 | |
4,900 |
| Rio Tinto, p.l.c., A.D.R. (Non-Energy Minerals) |
| 895,671 | |
|
|
|
| ||
|
|
|
| 2,126,436 | |
|
|
|
| ||
Hong Kong / China (5.2%) |
|
| |||
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 206,612 | |
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 298,663 | |
86,000 |
| Li & Fung, Ltd. (Consumer Durables) |
| 165,821 | |
434,000 |
| Petrochina Co., Ltd. (Energy Minerals) |
| 355,437 | |
31,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 307,704 | |
133,000 |
| Techtronic Industries Co., Ltd. (Consumer Durables) |
| 316,481 | |
|
|
|
| ||
|
|
|
| 1,650,718 | |
|
|
|
| ||
India * (1.0%) |
|
| |||
11,500 |
| ICICI Bank, A.D.R. (Finance) |
| 331,200 | |
|
|
|
| ||
Japan (26.7%) |
|
| |||
4,300 |
| AFLAC, Inc., A.D.R. (Finance) |
| 199,606 | |
30,000 |
| Asahi Breweries (Consumer Non-Durables) |
| 365,755 | |
7,000 |
| Canon, Inc. (Electronic Tech.) |
| 409,218 | |
57 |
| DENTSU, Inc. (Consumer Svcs.) |
| 185,444 | |
65 |
| East Japan Railway (Transportation) |
| 446,624 | |
3,900 |
| FANUC LTD. (Producer Mfg.) |
| 330,755 | |
5,600 |
| Honda Motor Co., Ltd. (Producer Mfg.) |
| 319,309 |
|
|
|
|
| |
Quantity | Name of Issuer | Market Value ($)(1) | |||
|
|
|
| ||
7,100 |
| Ito En, Ltd. (Consumer Non Durables) |
| 424,689 | |
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 294,501 | |
14 |
| Millea Holdings, Inc. (Finance) |
| 240,786 | |
8,400 |
| Matsumotokiyoshi Co., Ltd. (Retail Trade) |
| 265,458 | |
63 |
| Mitsubishi UFJ Financial Group, Inc. (Finance) |
| 853,749 | |
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 139,490 | |
66,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 511,650 | |
4,000 |
| NITTO DENKO Corp. (Producer Mfg.) |
| 311,446 | |
20,000 |
| Nomura Holdings, Inc. (Finance) |
| 382,954 | |
6,000 |
| Seven & I Holdings Co., Ltd. (Retail Trade) |
| 256,714 | |
57,000 |
| SHIMIZU Corp. (Producer Mfg.) |
| 418,699 | |
93 |
| Sumitomo Mitsui Financial Group, Inc. (Finance) |
| 984,919 | |
7,500 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 405,405 | |
6,200 |
| Yamada Denki Co. (Retail Trade) |
| 775,328 | |
|
|
|
| ||
|
|
|
| 8,522,499 | |
|
|
|
| ||
South Korea (0.8%) |
|
| |||
750 |
| Samsung Electronics Co., G.D.R. (Electronic Tech.) |
| 244,472 | |
|
|
|
| ||
Thailand (0.5%) |
|
| |||
62,000 |
| Advanced Info Services (Communications) |
| 163,317 | |
|
|
|
| ||
Europe (44.2%) |
|
| |||
Czech Republic (1.2%) |
|
| |||
6,600 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 382,140 | |
|
|
|
| ||
Finland (0.9%) |
|
| |||
15,050 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 275,415 | |
|
|
|
| ||
France (8.2%) |
|
| |||
12,136 |
| AXA (Finance) |
| 390,228 | |
8,000 |
| Business Objects, A.D.R. (Tech. Svcs.) (3) |
| 323,280 | |
2,392 |
| Danone (Consumer Non-Durables) |
| 248,996 | |
5,277 |
| Sanofi-Aventis (Health Tech.) |
| 460,612 | |
2,900 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 281,735 | |
1,721 |
| Total, S.A. (Energy Minerals) |
| 430,768 | |
10,558 |
| Veolia Environment (Utilities) |
| 476,230 | |
|
|
|
| ||
|
|
|
| 2,611,849 | |
|
|
|
| ||
Germany (6.1%) |
|
| |||
2,500 |
| Allianz AG (Finance) |
| 377,309 | |
17,500 |
| Deutsche Telekom, A.D.R. (Communications) |
| 291,025 | |
1,383 |
| Muenchener Rueckver (Finance) |
| 186,574 | |
937 |
| Puma AG (Consumer Durables) |
| 272,442 | |
2,723 |
| SAP AG (Tech. Services) |
| 492,002 | |
3,896 |
| Siemens AG (Producer Mfg.) |
| 332,717 | |
|
|
|
| ||
|
|
|
| 1,952,069 | |
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
| |
Quantity | Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
| ||
|
|
|
| ||
Ireland (1.6%) | |||||
21,920 |
| Anglo Irish Bank Corp. (Finance) |
| 331,729 | |
12,300 |
| Elan Corp., A.D.R. (Health Tech.) (3) |
| 171,339 | |
|
|
|
| ||
|
|
|
| 503,068 | |
|
|
|
| ||
Italy (0.6%) | |||||
23,900 |
| Azimut Holdings SpA (Finance) |
| 187,190 | |
|
|
|
| ||
Netherlands (2.6%) | |||||
12,500 |
| ASML Holding N.V., A.D.R. (Electronic Tech.) (3) |
| 251,000 | |
10,309 |
| ING Groep N.V. (Finance) |
| 356,288 | |
7,185 |
| Philips Electronics N.V. (Consumer Durables) |
| 222,471 | |
|
|
|
| ||
|
|
|
| 829,759 | |
|
|
|
| ||
Spain (1.5%) | |||||
31,344 |
| Telefonica, S.A. (Communications) |
| 469,905 | |
|
|
|
| ||
Sweden (1.4%) | |||||
13,500 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 464,400 | |
|
|
|
| ||
Switzerland (10.7%) | |||||
9,134 |
| Credit Suisse Group (Finance) |
| 464,341 | |
295 |
| Kuehne & Nagel International (Transportation) |
| 82,930 | |
1,982 |
| Nestle, S.A. (Consumer Non-Durables) |
| 591,013 | |
12,586 |
| Novartis, A.G. (Health Tech.) |
| 659,405 | |
1,057 |
| Panalpina Welttransport Holding (Transportation) (3) |
| 83,168 | |
3,767 |
| Roche Holdings, A.G. (Health Tech.) |
| 563,928 | |
3,690 |
| Synthes, Inc. (Health Tech.) |
| 413,251 | |
5,891 |
| UBS, A.G. (Finance) |
| 559,175 | |
|
|
|
| ||
|
|
|
| 3,417,211 | |
|
|
|
| ||
United Kingdom (9.4%) | |||||
5,100 |
| BP p.l.c., A.D.R. (Energy Minerals) |
| 327,522 | |
15,266 |
| Barclays, p.l.c. (Finance) |
| 160,129 | |
21,018 |
| Burberry Group, p.l.c. (Retail Trade) |
| 155,064 | |
4,829 |
| Cairn Energy, p.l.c. (Energy Minerals) (3) |
| 159,170 | |
6,100 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 307,928 | |
40,486 |
| Hilton Group, p.l.c. (Consumer Svcs.) |
| 252,647 | |
9,835 |
| Reckitt Benckiser, p.l.c. (Consumer Non-Durables) |
| 324,175 | |
9,427 |
| Royal Bank of Scotland (Finance) |
| 284,024 | |
60,712 |
| Tesco, p.l.c. (Retail Trade) |
| 345,511 | |
241,196 |
| Vodafone Group, p.l.c. (Communications) |
| 519,658 | |
15,354 |
| WPP Group p.l.c. (Consumer Svcs.) |
| 165,797 | |
|
|
|
| ||
|
|
|
| 3,001,625 | |
|
|
|
| ||
Latin America (3.1%) | |||||
Brazil (0.6%) | |||||
9,000 |
| AES Tiete S.A. (Utilities) |
| 196,146 | |
|
|
|
|
|
|
|
|
|
|
| Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
|
|
|
|
| ||
| Mexico (2.5%) | ||||
| 13,000 |
| NII Holdings, Inc. (Communications) (3) |
| 567,840 |
| 44,130 |
| Wal-Mart de Mexico (Retail Trade) |
| 244,760 |
|
|
|
|
| |
|
|
|
|
| 812,600 |
|
|
|
|
| |
| North America (5.7%) | ||||
| Canada (5.2%) |
|
| ||
| 6,000 |
| Cognos, Inc. (Tech. Services) (3) |
| 208,260 |
| 7,200 |
| EnCana Corp. (Energy Minerals) |
| 323,958 |
| 2,600 |
| Precision Drilling Trust (Industrial Svcs.) |
| 85,800 |
| 7,000 |
| Shoppers Drug Mart Corp. (Retail Trade) |
| 263,545 |
| 2,700 |
| Suncor Energy, Inc. (Energy Minerals) |
| 170,451 |
| 3,200 |
| Talisman Energy, Inc. (Energy Minerals) |
| 169,216 |
| 8,200 |
| Trican Well Service, Ltd. (Energy Minerals) |
| 393,100 |
| 4,000 |
| ZENON Environmental, Inc. (Utilities) (3) |
| 57,595 |
|
|
|
|
| |
|
|
|
|
| 1,671,925 |
|
|
|
|
| |
| United States (0.5%) |
|
| ||
| 10,200 |
| News Corp., Ltd., A.D.R. (Consumer Svcs.) |
| 158,610 |
|
|
|
|
| |
|
|
|
| ||
| Total common stocks |
| 31,023,882 | ||
|
|
| |||
| (cost: $22,935,055) |
|
| ||
|
|
|
| ||
| Closed-End Mutual Fund (1.4%) (2) |
|
| ||
| 11,500 |
| India Fund* (Consumer Svcs.) |
| 456,895 |
|
|
|
|
| |
| (cost: $206,645) |
|
| ||
|
|
|
| ||
| Short Term Securities (1.1%) (2) |
|
| ||
| 347,000 |
| Sit Money Market Fund, 3.90% (4) |
| 347,000 |
|
|
| |||
| (cost: $347,000) |
|
| ||
|
|
|
| ||
| Total investments in securities |
|
| ||
| (cost: $23,488,700) (5) |
| $31,827,777 | ||
|
|
|
|
| |
|
|
|
|
|
|
| * The fund’s total investments in India including the India Fund | ||||
| comprises 2.4% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
31
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Robert W. Sit, Matt T. Loucks, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Small Cap Growth Fund returned +14.20% over the past six months. This compares to the six-month return of +8.01% for the Russell 2000® Growth Index, while the Russell 2000® Index rose +5.88% over the period. For the calendar year 2005, we are pleased to report a +18.52% return for the Fund, well ahead of the +4.15% and +4.55% gains in the Russell 2000® Growth Index and Russell 2000® Index, respectively.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of small growth companies with capitalizations of $2.5 billion or less at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $31.68 Per Share |
6/30/05: |
| $27.74 Per Share |
|
|
|
Total Net Assets: |
| $240.8 Million |
|
|
|
Weighted Average Market Cap: |
| $2.9 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
| Sit |
|
| Russell 2000® |
|
| Russell 2000® |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
|
| 1.25 | % |
|
| 1.60 | % |
|
| 1.13 | % |
| ||
6 Month** |
|
| 14.20 |
|
|
| 8.01 |
|
|
| 5.88 |
|
| ||
1 Year |
|
| 18.52 |
|
|
| 4.15 |
|
|
| 4.55 |
|
| ||
5 Year |
|
| -2.03 |
|
|
| 2.28 |
|
|
| 8.22 |
|
| ||
10 Year |
|
| 9.70 |
|
|
| 4.68 |
|
|
| 9.26 |
|
| ||
Inception |
|
| 13.47 |
|
|
| 7.29 |
|
|
| 10.81 |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
| |||||||||||||||
|
|
|
| Sit |
|
| Russell 2000® |
|
| Russell 2000® |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
|
| 18.52 | % |
|
| 4.15 | % |
|
| 4.55 | % |
| ||
5 Year |
|
| -9.76 |
|
|
| 11.91 |
|
|
| 48.46 |
|
| ||
10 Year |
|
| 152.41 |
|
|
| 58.03 |
|
|
| 142.53 |
|
| ||
Inception |
|
| 328.51 |
|
|
| 124.72 |
|
|
| 225.88 |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/05. |
| **Not annualized. |
| ||||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of those Russell 2000® companies with higher price-to-book ratios and higher forecasted growth values. Since the Fund’s inception, the Russell 2000® Index was used to compare performance; however the Adviser believes the Russell 2000® Growth Index more accurately reflects the Fund’s growth investment objectives and strategies and therefore will be used to compare the Fund’s performance. |
(2) | An unmanaged index which measures the performance of the 2,000 smallest companies in the Russell 3000® Index (an index of the 3,000 largest U.S. companies based on total market capitalization). |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have grown to $25,241 in the Fund, or $15,803 in the Russell 2000® Growth Index and $24,253 in the Russell 2000® Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
w | Southwestern Energy Co. |
w | Affiliated Managers Group, Inc. |
w | Frontier Oil Corp. |
w | Kyphon, Inc. |
w | Gasco Energy, Inc. |
w | UTI Worldwide, Inc. |
w | Equitable Resoures, Inc. |
w | Joy Global, Inc. |
w | Business Objects S.A., A.D.R. |
w | Celgene Corp. |
|
|
Total Number of Holdings: 100 |
33
|
|
|
|
|
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| ||
|
|
|
| ||
Common Stocks (94.9%) (2) |
|
|
| ||
Commercial Services (1.4%) |
|
|
| ||
36,900 |
| Getty Images, Inc. (3) |
| 3,294,063 |
|
|
|
|
|
| |
Communications (4.5%) |
|
|
| ||
94,201 |
| American Tower Corp. (3) |
| 2,552,847 |
|
67,500 |
| NII Holdings, Inc. (3) |
| 2,948,400 |
|
118,950 |
| SBA Communications Corp. (3) |
| 2,129,205 |
|
335,600 |
| Ubiquitel, Inc. (3) |
| 3,319,084 |
|
|
|
|
|
| |
|
|
|
| 10,949,536 |
|
|
|
|
|
| |
Consumer Durables (1.1%) |
|
|
| ||
94,900 |
| Scientific Games Corp. (3) |
| 2,588,872 |
|
|
|
|
|
| |
Consumer Non-Durables (2.5%) |
|
|
| ||
16,500 |
| Carter’s, Inc. (3) |
| 971,025 |
|
108,400 |
| Coach, Inc. (3) |
| 3,614,056 |
|
18,000 |
| Hansen Natural Corp. (3) |
| 1,418,580 |
|
|
|
|
|
| |
|
|
|
| 6,003,661 |
|
|
|
|
|
| |
Consumer Services (2.2%) |
|
|
| ||
77,200 |
| Aztar Corp. (3) |
| 2,346,108 |
|
47,900 |
| Life Time Fitness, Inc. (3) |
| 1,824,511 |
|
18,600 |
| Panera Bread Co. (3) |
| 1,221,648 |
|
|
|
|
|
| |
|
|
|
| 5,392,267 |
|
|
|
|
|
| |
Electronic Technology (10.5%) |
|
|
| ||
134,700 |
| Agere Systems, Inc. (3) |
| 1,736,283 |
|
93,050 |
| Arris Group, Inc. (3) |
| 881,184 |
|
60,600 |
| Cognex Corp. |
| 1,823,454 |
|
138,450 |
| Fairchild Semiconductor International, Inc. (3) |
| 2,341,190 |
|
105,460 |
| Intersil Corp. |
| 2,623,845 |
|
73,200 |
| Juniper Networks, Inc. (3) |
| 1,632,360 |
|
80,825 |
| Kronos, Inc. (3) |
| 3,383,334 |
|
95,100 |
| Microsemi Corp. (3) |
| 2,630,466 |
|
37,000 |
| MICROS Systems, Inc. (3) |
| 1,787,840 |
|
1,600 |
| Radyne Corp. (3) |
| 23,312 |
|
50,200 |
| Silicon Image, Inc. (3) |
| 454,310 |
|
31,700 |
| Silicon Laboratories, Inc. (3) |
| 1,162,122 |
|
243,050 |
| Sonus Networks, Inc. (3) |
| 904,146 |
|
51,200 |
| Trimble Navigation, Ltd. (3) |
| 1,817,088 |
|
48,800 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
| 2,143,784 |
|
|
|
|
|
| |
|
|
|
| 25,344,718 |
|
|
|
|
|
| |
Energy Minerals (11.1%) |
|
|
| ||
36,500 |
| ATP Oil & Gas Corp. (3) |
| 1,350,865 |
|
76,750 |
| Carrizo Oil & Gas, Inc. (3) |
| 1,896,493 |
|
57,700 |
| Foundation Coal Holdings, Inc. |
| 2,192,600 |
|
154,500 |
| Frontier Oil Corp. |
| 5,798,385 |
|
742,075 |
| Gasco Energy, Inc. (3) |
| 4,845,750 |
|
75,900 |
| Quicksilver Resources, Inc. (3) |
| 3,188,559 |
|
204,700 |
| Southwestern Energy Co. (3) |
| 7,356,918 |
|
|
|
|
|
| |
|
|
|
| 26,629,570 |
|
|
|
|
|
| |
Finance (9.0%) |
|
|
| ||
74,175 |
| Affiliated Managers Group, Inc. (3) |
| 5,952,544 |
|
83,700 |
| Aspen Insurance Holdings, Ltd. |
| 1,981,179 |
|
98,900 |
| Hanmi Financial Corp. |
| 1,765,365 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) | ||
|
|
|
|
|
59,300 |
| National Financial Partners Corp. |
| 3,116,215 |
94,836 |
| New York Community Bancorp, Inc. |
| 1,566,691 |
56,700 |
| The Navigators Group, Inc. (3) |
| 2,472,687 |
116,640 |
| UCBH Holdings, Inc. |
| 2,085,523 |
51,850 |
| Wintrust Financial Corp. |
| 2,846,565 |
|
|
|
| |
|
|
|
| 21,786,769 |
|
|
|
| |
Health Services (4.7%) |
|
| ||
47,600 |
| Covance, Inc. (3) |
| 2,310,980 |
40,000 |
| LifePoint Hospitals, Inc. (3) |
| 1,500,000 |
41,700 |
| Psychiatric Solutions, Inc. (3) |
| 2,449,458 |
29,350 |
| Stericycle, Inc. (3) |
| 1,728,128 |
43,000 |
| Symbion, Inc. (3) |
| 989,000 |
31,500 |
| United Surgical Partners International, Inc. (3) |
| 1,012,725 |
45,000 |
| VCA Antech, Inc. (3) |
| 1,269,000 |
|
|
|
| |
|
|
|
| 11,259,291 |
|
|
|
| |
Health Technology (14.1%) |
|
| ||
88,000 |
| Amylin Pharmaceuticals, Inc. (3) |
| 3,512,960 |
57,400 |
| Biosite, Inc. (3) |
| 3,231,046 |
63,600 |
| Celgene Corp. (3) |
| 4,121,280 |
48,000 |
| Connetics Corp. (3) |
| 693,600 |
210,850 |
| CryoLife, Inc. (3) |
| 704,239 |
133,200 |
| CV Therapeutics, Inc. (3) |
| 3,294,036 |
13,800 |
| Intuitive Surgical, Inc. (3) |
| 1,618,326 |
23,500 |
| Invitrogen Corp. (3) |
| 1,566,040 |
120,800 |
| Kyphon, Inc. (3) |
| 4,932,264 |
163,000 |
| NuVasive, Inc. (3) |
| 2,950,300 |
32,000 |
| Palomar Medical Technologies, Inc. (3) |
| 1,121,280 |
61,000 |
| ResMed, Inc. (3) |
| 2,336,910 |
70,096 |
| SurModics, Inc. (3) |
| 2,592,851 |
65,750 |
| Wright Medical Group, Inc. (3) |
| 1,341,300 |
|
|
|
| |
|
|
|
| 34,016,432 |
|
|
|
| |
Industrial Services (6.7%) |
|
| ||
39,500 |
| CARBO Ceramics, Inc. |
| 2,232,540 |
83,400 |
| Chicago Bridge & Iron Co. |
| 2,102,514 |
45,600 |
| Core Laboratories N.V. (3) |
| 1,703,616 |
47,500 |
| Flotek Industries, Inc. (3) |
| 885,875 |
39,300 |
| Granite Construction, Inc. |
| 1,411,263 |
17,000 |
| Hydril (3) |
| 1,064,200 |
52,900 |
| McDermott International, Inc. (3) |
| 2,359,869 |
123,300 |
| Pioneer Drilling Co. (3) |
| 2,210,769 |
57,500 |
| Todco |
| 2,188,450 |
|
|
|
| |
|
|
|
| 16,159,096 |
|
|
|
| |
Non-Energy Minerals (0.8%) |
|
| ||
23,700 |
| RTI International Metals, Inc. (3) |
| 899,415 |
14,400 |
| Titanium Metals Corp. (3) |
| 910,944 |
|
|
|
| |
|
|
|
| 1,810,359 |
|
|
|
| |
Producer Manufacturing (6.5%) |
|
| ||
48,900 |
| AMETEK, Inc. |
| 2,080,206 |
59,500 |
| Anixter International, Inc. (3) |
| 2,327,640 |
13,704 |
| Astec Industries, Inc. (3) |
| 447,573 |
26,100 |
| DRS Technologies, Inc. |
| 1,342,062 |
32,600 |
| IDEX Corp. |
| 1,340,186 |
107,625 |
| Joy Global, Inc. |
| 4,305,000 |
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| Quantity | Name of Issuer | Market Value ($)(1) | ||||
|
|
|
|
|
|
|
|
|
|
|
44,250 |
| Kaydon Corp. |
| 1,422,195 |
|
|
|
|
|
|
61,600 |
| Roper Industries, Inc. |
| 2,433,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| 15,698,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Retail Trade (6.5%) |
|
|
|
|
|
|
|
| ||
66,075 |
| Advance Auto Parts, Inc. (3) |
| 2,871,619 |
|
|
|
|
|
|
72,500 |
| Chico’s FAS, Inc. (3) |
| 3,184,925 |
|
|
|
|
|
|
110,250 |
| Coldwater Creek, Inc. (3) |
| 3,365,932 |
|
|
|
|
|
|
48,550 |
| Guitar Center Mgmt., Inc. (3) |
| 2,427,985 |
|
|
|
|
|
|
88,000 |
| Jos. A. Bank Clothiers, Inc. (3) |
| 3,820,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| 15,670,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Technology Services (7.6%) |
|
|
|
|
|
|
|
| ||
41,700 |
| ANSYS, Inc. (3) |
| 1,780,173 |
|
|
|
|
|
|
106,050 |
| Business Objects S.A., A.D.R. (3) |
| 4,285,481 |
|
|
|
|
|
|
20,500 |
| CACI International, Inc. (3) |
| 1,176,290 |
|
|
|
|
|
|
101,100 |
| Citrix Systems, Inc. (3) |
| 2,909,658 |
|
|
|
|
|
|
60,000 |
| Hyperion Solutions, Inc. (3) |
| 2,149,200 |
|
|
|
|
|
|
227,350 |
| Informatica Corp. (3) |
| 2,728,200 |
|
|
|
|
|
|
112,800 |
| Quest Software, Inc. (3) |
| 1,645,752 |
|
|
|
|
|
|
24,150 |
| Websense, Inc. (3) |
| 1,585,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| 18,259,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Transportation (3.8%) |
|
|
|
|
|
|
|
| ||
93,400 |
| C.H. Robinson Worldwide, Inc. |
| 3,458,602 |
|
|
|
|
|
|
32,550 |
| Tsakos Energy Navigation, Ltd. |
| 1,193,608 |
|
|
|
|
|
|
48,700 |
| UTI Worldwide, Inc. |
| 4,521,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| 9,173,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Utilities (1.9%) |
|
|
|
|
|
|
|
| ||
123,200 |
| Equitable Resources, Inc. |
| 4,520,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total common stocks |
|
|
|
|
|
|
|
| ||
(cost: $161,502,580) |
| 228,557,539 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities (5.0%) (2) |
|
|
|
|
|
|
|
| ||
11,925,000 |
| Sit Money Market Fund, 3.90% (4) |
| 11,925,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(cost: $11,925,000) |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities |
|
|
|
|
|
|
|
| ||
(cost: $173,427,580) (5) |
| $240,482,539 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
35
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Robert W. Sit, Mark A. Pepper, Matt T. Loucks |
|
|
|
|
|
|
|
|
The Sit Science and Technology Growth Fund returned +15.54% over the last six months, compared to the +12.19% return for the ArcaEx Tech 100 Index. The S&P 500 Index returned +5.77% over the period.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies principally engaged in science and technology business activities. Such companies include those whose assets, gross income, or net profits are significantly committed to, or derived from, science and technology. The Adviser seeks stocks of science and technology companies having superior growth potential in virtually any industry in which they may be found.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value12/31/05: |
| $10.56 Per Share |
6/30/05: |
| $9.14 Per Share |
|
|
|
Total Net Assets: |
| $14.6 Million |
|
|
|
Weighted Average Market Cap: |
| $33.3 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
| Sit |
|
| ArcaEx |
|
| S&P |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
| 2.52 | % |
|
| 2.18 | % |
|
| 2.09 | % |
|
| ||
6 Month** |
| 15.54 |
|
|
| 12.19 |
|
|
| 5.77 |
|
|
| ||
1 Year |
| 3.83 |
|
|
| 7.36 |
|
|
| 4.91 |
|
|
| ||
3 Years |
| 16.03 |
|
|
| 22.20 |
|
|
| 14.39 |
|
|
| ||
5 Years |
| -14.64 |
|
|
| 0.53 |
|
|
| 0.54 |
|
|
| ||
Inception |
| 1.08 |
|
|
| 14.12 |
|
|
| 4.78 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
|
| ArcaEx |
|
| S&P |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 Year |
| 3.83 | % |
|
| 7.36 | % |
|
| 4.91 | % |
|
| ||
3 Years |
| 56.21 |
|
|
| 82.49 |
|
|
| 49.69 |
|
|
| ||
5 Years |
| -54.69 |
|
|
| 2.70 |
|
|
| 2.75 |
|
|
| ||
Inception |
| 8.99 |
|
|
| 187.85 |
|
|
| 45.35 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/05 |
| **Not annualized. |
|
| |||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of 100 technology-related exchange-listed and over-the-counter stocks. Since 1998, the S&P 500 Index was used to compare performance; however the Adviser believes the ArcaEx Tech 100 Index more accurately reflects the Fund’s growth investment objectives and strategies and therefore will be used to compare the Fund’s performance. |
(2) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/97) and held until 12/31/05 would have grown to $10,899 in the Fund or $28,785 in the ArcaEx Tech 100 Index and $14,535 in the S&P 500 Index.
|
TOP 10 HOLDINGS |
w | Google, Inc. |
w | Apple Computer, Inc. |
w | Yahoo!, Inc. |
w | Celgene Corp. |
w | Qualcomm, Inc. |
w | St. Jude Medical, Inc. |
w | Broadcom Corp. |
w | Amgen, Inc. |
w | Business Objects, A.D.R. |
w | SAP, A.D.R. |
| |
Total Number of Holdings: 56 |
37
|
|
|
|
|
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2005 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| ||
|
|
|
| ||
|
|
|
| ||
Electronic Technology (32.6%) |
|
|
| ||
12,000 |
| Advanced Energy Industries, Inc. (3) |
| 141,480 |
|
10,100 |
| Agilent Technologies, Inc. (3) |
| 336,229 |
|
8,600 |
| Analog Devices, Inc. |
| 308,482 |
|
7,000 |
| Apple Computer, Inc. (3) |
| 503,230 |
|
8,100 |
| Broadcom Corp. (3) |
| 381,915 |
|
16,000 |
| Cisco Systems, Inc. (3) |
| 273,920 |
|
20,300 |
| EMC Corp. (3) |
| 276,486 |
|
6,600 |
| Hewlett-Packard Co. |
| 188,958 |
|
11,200 |
| Intel Corp. |
| 279,552 |
|
7,017 |
| Juniper Networks, Inc. (3) |
| 156,479 |
|
4,000 |
| Lam Research Corp. (3) |
| 142,720 |
|
6,200 |
| Microsemi Corp. (3) |
| 171,492 |
|
6,800 |
| Network Appliance, Inc. (3) |
| 183,600 |
|
9,600 |
| Qualcomm, Inc. |
| 413,568 |
|
13,000 |
| Radyne ComStream, Inc. (3) |
| 189,410 |
|
8,800 |
| Rimage Corp. (3) |
| 255,024 |
|
17,500 |
| Silicon Image, Inc. (3) |
| 158,375 |
|
5,100 |
| Standard Microsystems Corp. (3) |
| 146,319 |
|
9,800 |
| Xilinx, Inc. |
| 247,058 |
|
|
|
|
|
| |
|
|
|
| 4,754,297 |
|
|
|
|
|
| |
Health Services (3.5%) |
|
|
| ||
4,300 |
| Quality Systems, Inc. |
| 330,068 |
|
5,000 |
| Radiation Therapy Services, Inc. (3) |
| 176,550 |
|
|
|
|
|
| |
|
|
|
| 506,618 |
|
|
|
|
|
| |
Health Technology (29.4%) |
|
|
| ||
3,700 |
| Advanced Medical Optics, Inc. (3) |
| 154,660 |
|
4,800 |
| Amgen, Inc. (3) |
| 378,528 |
|
4,700 |
| Amylin Pharmaceuticals, Inc. (3) |
| 187,624 |
|
6,700 |
| Celgene Corp. (3) |
| 434,160 |
|
6,000 |
| CV Therapeutics, Inc. (3) |
| 148,380 |
|
11,900 |
| Elan Corp., A.D.R (3) |
| 165,767 |
|
9,600 |
| ev3, Inc. (3) |
| 141,504 |
|
4,500 |
| Foxhollow Technologies, Inc. (3) |
| 134,055 |
|
3,700 |
| Genentech, Inc. (3) |
| 342,250 |
|
3,500 |
| Gen-Probe, Inc. (3) |
| 170,765 |
|
2,300 |
| Genzyme Corp. (3) |
| 162,794 |
|
3,900 |
| Gilead Sciences, Inc. (3) |
| 205,257 |
|
8,000 |
| Kyphon, Inc. (3) |
| 326,640 |
|
4,600 |
| Medtronic, Inc. |
| 264,822 |
|
17,400 |
| NuVasive, Inc. (3) |
| 314,940 |
|
4,900 |
| Surmodics, Inc. (3) |
| 181,251 |
|
8,200 |
| St. Jude Medical, Inc. (3) |
| 411,640 |
|
2,800 |
| Techne Corp. (3) |
| 157,220 |
|
|
|
|
|
| |
|
|
|
| 4,282,257 |
|
|
|
|
|
| |
Producer Manufacturing (2.9%) |
|
|
| ||
6,500 |
| Energy Conversion Devices, Inc. (3) |
| 264,875 |
|
3,700 |
| Harris Corp. |
| 159,137 |
|
|
|
|
|
| |
|
|
|
| 424,012 |
|
|
|
|
|
|
|
|
|
|
| |
Quantity |
| Name of Issuer | Market Value ($)(1) | ||
|
|
| |||
|
|
|
| ||
Retail Trade (1.3%) |
|
| |||
4,300 |
| eBay, Inc. (3) |
| 185,975 | |
|
|
|
| ||
| |||||
Technology Services (27.4%) |
|
| |||
9,000 |
| Adobe Systems, Inc. |
| 332,640 | |
4,400 |
| ANSYS, Inc. (3) |
| 187,836 | |
6,600 |
| Autodesk, Inc. |
| 283,470 | |
9,000 |
| Business Objects, A.D.R. (3) |
| 363,690 | |
5,000 |
| Global Payments, Inc. |
| 233,050 | |
1,600 |
| Google, Inc. (3) |
| 663,776 | |
3,500 |
| J2 Global Communications, Inc. (3) |
| 149,590 | |
10,800 |
| McAfee, Inc. (3) |
| 293,004 | |
8,500 |
| Microsoft Corp. |
| 222,275 | |
6,600 |
| NAVTEQ (3) |
| 289,542 | |
7,800 |
| SAP, A.D.R. |
| 351,546 | |
8,000 |
| Witness Sytems, Inc. (3) |
| 157,360 | |
12,000 |
| Yahoo!, Inc. (3) |
| 470,160 | |
|
|
|
| ||
|
|
|
| 3,997,939 | |
|
|
|
| ||
|
|
|
|
| |
Total common stocks |
| 14,151,098 | |||
|
| ||||
(cost: $11,080,598) |
|
| |||
|
|
|
|
| |
Short-Term Securities (2.8%) (2) |
|
| |||
406,000 |
| Sit Money Market Fund, 3.90% (4) |
| 406,000 | |
|
|
|
| ||
(cost: $406,000) |
|
| |||
|
|
|
|
| |
Total investments in securities |
|
| |||
(cost: $11,486,598) (5) |
| $14,557,098 | |||
|
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| ||
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This page has been left blank intentionally.
See accompanying notes to portfolios of investments on page 44.
39
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| |
| Six Months Ended December 31, 2005 |
|
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|
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| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Raymond E. Sit |
|
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|
|
INVESTMENT OBJECTIVE AND STRATEGY |
The Fund seeks to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies domiciled or operating in a developing market. In selecting investments for the Fund, the Sub-Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Sub-Adviser seeks industries and sectors that appear to have strong earnings growth prospects. Within the selected industries and sectors, the Sub-Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/05: |
| $16.01 Per Share |
6/30/05: |
| $12.97 Per Share |
| ||
Total Net Assets: |
| $15.3 Million |
| ||
Weighted Average Market Cap: |
| $34.9 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
40
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| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
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|
|
|
| ||||||
|
| Sit |
| MSCI |
| MSCI |
| ||||
3 Month** |
| 5.97 | % |
| 6.83 | % |
| 8.34 | % |
| |
6 Month** |
| 23.87 |
|
| 25.00 |
|
| 26.70 |
|
| |
1 Year |
| 33.77 |
|
| 30.31 |
|
| 32.04 |
|
| |
5 Year |
| 10.32 |
|
| 16.18 |
|
| 13.64 |
|
| |
10 Year |
| 5.68 |
|
| 4.42 |
|
| n/a |
|
| |
Inception |
| 4.34 |
|
| 3.43 |
|
| n/a |
|
| |
(7/1/94) |
|
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| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
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|
|
| |
|
| Sit |
| MSCI |
| MSCI |
| ||||
1 Year |
| 33.77 | % |
| 30.31 | % |
| 32.04 | % |
| |
5 Year |
| 63.44 |
|
| 111.65 |
|
| 89.50 |
|
| |
10 Year |
| 73.81 |
|
| 54.13 |
|
| n/a |
|
| |
Inception |
| 63.00 |
|
| 47.44 |
|
| n/a |
|
| |
(7/1/94) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 12/31/05 | **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. | |
(1) | An unmanaged index that measures the performance of over 1,000 international emerging companies representing the stock markets of over 25 countries. |
(2) | An unmanaged index that measures the performance of over 1,000 international emerging companies representing the stock markets of over 26 countries. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/95 and held until 12/31/05 would have increased to $17,381 in the Fund, or $15,413 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
41
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
| ||
|
|
| ||
| Portfolio of Investments - December 31, 2005 (Unaudited) |
| ||
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
w | Samsung Electronics |
w | Petrochina Co. |
w | Anglo American p.l.c. |
w | India Fund |
w | BHP Billiton Limited, A.D.R. |
w | Petrobras |
w | NII Holdings, Inc. |
w | Banco Bradesco S.A. |
w | Shinhan Financial Group |
w | America Movil, A.D.R. |
| |
Total Number of Holdings: 75 |
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
|
|
|
|
|
|
|
|
|
|
Common Stocks (91.2%) (2) |
|
| ||
Africa/ Middle East (6.7%) |
|
| ||
Israel (5.2%) |
|
| ||
8,700 |
| Amdocs, Ltd. (Technology Svcs.) (3) | 239,250 | |
9,150 |
| Lipman (Electronic Tech.) (3) | 212,921 | |
800 |
| NICE Systems Ltd., A.D.R. | 38,528 | |
7,200 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) | 309,672 | |
|
|
|
| |
|
|
|
| 800,371 |
|
|
|
| |
South Africa (1.5%) |
|
| ||
6,900 |
| Naspers, Ltd. (Consumer Svcs.) | 121,856 | |
3,000 |
| Sasol (Energy Minerals) | 106,920 | |
|
|
|
| |
|
|
|
| 228,776 |
|
|
|
| |
Asia (50.6%) |
|
| ||
Australia (4.0%) |
|
| ||
11,510 |
| BHP Billiton, Ltd., A.D.R. (Non-Energy Minerals) | 384,664 | |
1,200 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) | 219,348 | |
|
|
|
| |
|
|
|
| 604,012 |
|
|
|
| |
China / Hong Kong (10.0%) |
| |||
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) | 95,924 | |
55,000 |
| Hongkong Land Holdings, Ltd. (Finance) | 172,700 | |
5,400 |
| HSBC Holdings p.l.c. (Finance) | 86,709 | |
512,000 |
| PetroChina Co. (Energy Minerals) | 419,318 | |
222,508 |
| Ports Design, Ltd. (Retail Trade) | 258,278 | |
10,000 |
| Sun Hung Kai Properties, Ltd. (Finance) | 97,375 | |
118,000 |
| Tsingtao Brewery Co., Ltd. (Consumer Non-Durables) | 124,794 | |
342,000 |
| Xinao Gas Holdings, Ltd. (Utlities) | 271,269 | |
|
|
| ||
|
|
| 1,526,367 | |
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
|
|
| ||
India * (4.3%) |
|
| ||
8,000 |
| ICICI Bank, A.D.R. (Finance) | 230,400 | |
2,300 |
| Infosys Technologies, Ltd., A.D.R. | 185,978 | |
6,200 |
| Reliance Industries, Ltd., G.D.R. (Energy Minerals) | 245,086 | |
|
|
|
| |
|
|
|
| 661,464 |
|
|
|
| |
Indonesia (0.8%) |
|
| ||
36,500 |
| PT Astra International Tbk (Producer Mfg.) | 37,835 | |
3,400 |
| PT Telekomunikasi (Communications) | 81,124 | |
|
|
|
| |
|
|
|
| 118,959 |
|
|
|
| |
Malaysia (0.6%) |
|
| ||
71,100 |
| Astro All Asia Networks, p.l.c. (Consumer Svcs.) | 98,763 | |
|
|
|
| |
Phillipines (1.7%) |
|
| ||
1,680,000 |
| Manila Water Co. (Utilities) | 196,399 | |
110,500 |
| Semirara Mining Corp. (Energy Minerals) (3) | 60,422 | |
|
|
|
| |
|
|
|
| 256,821 |
|
|
|
| |
Russia (4.3%) |
|
| ||
5,200 |
| LUKOIL, A.D.R. (Energy Minerals) | 309,400 | |
5,100 |
| Mobile Telesystems, A.D.R. (Communications) | 178,500 | |
3,800 |
| Vimpel Communications, A.D.R. (Communications) (3) | 168,074 | |
|
|
|
| |
|
|
|
| 655,974 |
|
|
|
| |
Singapore (0.9%) |
|
| ||
109,000 |
| Starhub, Ltd. (Communications) | 134,382 | |
|
|
|
| |
South Korea (14.7%) |
|
| ||
700 |
| Cheil Communications, Inc. (Commercial Svcs.) | 152,693 | |
16,007 |
| Industrial Bank of Koea (Finance) | 243,306 | |
5,200 |
| Korea Electric Power Corp. (Utilities) | 101,348 | |
2,200 |
| Kookmin Bank (Finance) | 166,494 | |
1,900 |
| Kookmin Bank, A.D.R. (Finance) | 141,949 | |
1,800 |
| POSCO, A.D.R. (Non-Energy Minerals) | 89,118 | |
1,199 |
| Samsung Electronics (Electronic Tech.) | 781,660 | |
8,100 |
| Shinhan Financial Group (Finance) | 328,936 | |
420 |
| Shinsegae Co., Ltd. (Retail Trade) | 184,063 | |
3,100 |
| SK Telecom Co., A.D.R. (Communications) | 62,899 | |
|
|
|
| |
|
|
|
| 2,252,466 |
|
|
|
| |
Taiwan (6.7%) |
|
| ||
33,000 |
| Asustek Computer, Inc. (Electronic Tech.) | 101,483 | |
76,000 |
| Cathay Financial Holding Co., Ltd. (Finance) | 137,685 | |
21,893 |
| Hon Hai Precision Industry Co., Ltd. (Electronic Tech.) | 251,771 |
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) |
| |
| |||||
8,500 |
| MediaTek, Inc. (Electronic Tech.) | 100,158 |
| |
107,583 |
| Taiwan Semiconductor Co. (Electronic Tech.) | 204,730 |
| |
23,800 |
| Taiwan Semiconductor Manufacturing Co., Ltd., A.D.R. (Electronic Tech.) | 235,858 |
| |
|
|
|
|
| |
|
| 1,031,685 |
| ||
|
|
|
|
| |
Thailand (2.6%) |
|
| |||
68,000 |
| Advanced Info Service Public Co., Ltd. (Communications) | 179,122 |
| |
37,600 |
| Bangkok Bank Public Co., Ltd. (Finance) | 105,463 |
| |
68,200 |
| Thai Public Oil Co. (Energy Minerals) | 105,627 |
| |
|
|
|
|
| |
|
| 390,212 |
| ||
|
|
|
|
| |
Europe (11.6%) |
|
| |||
Czech Republic (3.4%) |
|
| |||
4,900 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) | 283,710 |
| |
7,700 |
| CEZ (Utilities) | 230,245 |
| |
|
|
|
|
| |
|
| 513,955 |
| ||
|
|
|
|
| |
Greece (1.6%) |
|
| |||
22,400 |
| National Bank of Greece S.A., A.D.R. (Finance) | 191,744 |
| |
1,500 |
| Tsakos Energy Navigation, Ltd., A.D.R. (Transportation) | 55,005 |
| |
|
|
|
|
| |
|
| 246,749 |
| ||
|
|
|
|
| |
Hungary (0.9%) |
|
| |||
2,200 |
| OTP Bank, G.D.R. (Finance) | 144,320 |
| |
|
|
|
|
| |
|
|
|
| ||
Poland (0.9%) |
|
| |||
3,500 |
| Central European Distribution Corp. (Consumer Non-Durables) (3) | 140,490 |
| |
|
|
|
|
| |
Turkey (2.1%) |
|
| |||
37,839 |
| Finansbank AS (Finance) | 167,987 |
| |
28,500 |
| Is Finansal Kiralama A.S. (Finance) | 149,723 |
| |
|
|
|
|
| |
|
| 317,710 |
| ||
|
|
|
|
| |
United Kingdom (2.7%) |
|
| |||
12,100 |
| Anglo American p.l.c. | 411,088 |
| |
|
|
|
|
| |
Latin America (22.3%) |
|
| |||
Argentina (1.0%) |
|
| |||
1,370 |
| Tenaris S.A., A.D.R. (Industrial Svcs.) | 156,865 |
| |
|
|
|
|
| |
Brazil (11.4%) |
|
| |||
9,200 |
| AES Tiete S.A. (Utilities) | 200,505 |
| |
11,958 |
| Banco Bradesco S.A. (Finance) | 346,632 |
| |
2,100 |
| Companhia de Bebidas das Americas (Consumer Non-Durables) | 79,905 |
| |
7,300 |
| Companhia Vale do Rio Doce, A.D.R. (Non-Energy Minerals) | 300,322 |
|
|
|
|
|
| |
Quantity |
| Name of Issuer | Market Value ($)(1) | ||
| |||||
3,883 |
| Embraer de Aeronautica, A.D.R. (Electronic Tech.) | 151,825 | ||
3,900 |
| Pao de Acucar, A.D.R. (Retail Trade) | 128,310 | ||
23,440 |
| Petrobras (Energy Minerals) | 373,454 | ||
8,600 |
| Tele Norte Leste Participacoes, A.D.R. (Communications) | 154,112 | ||
|
|
|
| ||
|
| 1,735,065 | |||
|
|
|
| ||
Mexico (9.3%) |
| ||||
10,800 |
| America Movil, A.D.R. (Communications) | 316,008 | ||
1,500 |
| Cemex S.A. de C.V., A.D.R. (Non-Energy Minerals) | 88,995 | ||
2,400 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) | 193,200 | ||
4,200 |
| Homex, A.D.R. (Consumer Durables) (3) | 128,856 | ||
8,000 |
| NII Holdings, Inc. (Communications) (3) | 349,440 | ||
3,800 |
| Telefonos de Mexico, A.D.R. (Communications) | 93,784 | ||
45,270 |
| Wal-Mart de Mexico (Retail Trade) | 251,083 | ||
|
|
|
| ||
|
| 1,421,366 | |||
|
|
|
| ||
Peru (0.6%) |
| ||||
1,400 |
| Southern Copper Corp. (Non-Energy Minerals) | 93,772 | ||
|
|
|
| ||
|
|
| |||
Total common stocks |
| 13,941,632 | |||
|
| ||||
(cost: $8,616,420) |
| ||||
|
|
| |||
Closed-End Mutual Fund (2.6%) (2) |
| ||||
9,940 |
| India Fund* (Consumer Services) | 394,916 | ||
|
|
|
| ||
(cost: $140,784) |
| ||||
|
|
| |||
Short-Term Securities (5.3%) (2) |
|
| |||
814,000 |
| Sit Money Market Fund, 3.90% (4) | 814,000 | ||
|
|
|
| ||
(cost: $814,000) |
| ||||
|
|
| |||
Total investments in securities |
| ||||
(cost: $9,571,204) (5) | $15,150,548 | ||||
|
| ||||
|
|
| |||
* The fund’s total investments in India including the India Fund comprises 6.9% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
43
|
|
|
|
|
| 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) | Presently non-income producing securities. |
|
|
|
| (4) | This security represents an investment in an affiliated party. See note 3 to the accompanying financial statements. |
|
|
|
| (5) | At December 31, 2005, the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation based on that cost were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
|
| ||||||||
| Cost for federal income tax purposes |
| $ | 10,434,409 |
| $ | 17,755,779 |
| $ | 66,630,075 |
| $ | 150,260,774 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross unrealized appreciation |
| $ | 1,998,954 |
| $ | 1,835,612 |
| $ | 18,722,955 |
| $ | 69,877,346 |
|
| Gross unrealized depreciation |
|
| (377,312 | ) |
| (309,802 | ) |
| (3,337,654 | ) |
| (1,841,661 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized appreciation (depreciation) |
| $ | 1,621,642 |
| $ | 1,525,810 |
| $ | 15,385,301 |
| $ | 68,035,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
|
| ||||||||
| Cost for federal income tax purposes |
| $ | 23,488,700 |
| $ | 173,427,580 |
| $ | 11,486,598 |
| $ | 9,571,204 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross unrealized appreciation |
| $ | 9,012,257 |
| $ | 71,671,474 |
| $ | 4,219,229 |
| $ | 5,653,085 |
|
| Gross unrealized depreciation |
|
| (673,180 | ) |
| (4,616,515 | ) |
| (1,148,729 | ) |
| (73,741 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized appreciation (depreciation) |
| $ | 8,339,077 |
| $ | 67,054,959 |
| $ | 3,070,500 |
| $ | 5,579,344 |
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
45
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| December 31, 2005 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
|
| ||||||||
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities, at identified cost |
| $ | 10,434,409 |
| $ | 17,755,779 |
| $ | 66,630,075 |
| $ | 150,260,774 |
|
|
|
|
|
|
|
| ||||||||
| Investments in securities, at market value - see accompanying schedules for detail |
| $ | 11,958,051 |
| $ | 18,988,589 |
| $ | 76,514,376 |
| $ | 209,061,459 |
|
| Investments in affiliated mutual funds |
|
| 98,000 |
|
| 293,000 |
|
| 5,501,000 |
|
| 9,235,000 |
|
| Cash in bank on demand deposit |
|
| 14 |
|
| 11,281 |
|
| 949 |
|
| 1,162 |
|
| Accrued interest and dividends receivable |
|
| 47,697 |
|
| 32,599 |
|
| 92,134 |
|
| 98,003 |
|
| Receivable for investment securities sold |
|
| — |
|
| — |
|
| 184,941 |
|
| 135,077 |
|
| Other receivables |
|
| 37 |
|
| — |
|
| 11,216 |
|
| — |
|
| Receivable for Fund shares sold |
|
| 3,977 |
|
| 186,489 |
|
| 558,665 |
|
| 135,134 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
| 12,107,776 |
|
| 19,511,958 |
|
| 82,863,281 |
|
| 218,665,835 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
| — |
|
| Payable for investment securities purchased |
|
| 13,633 |
|
| 146,655 |
|
| 366,134 |
|
| 340,825 |
|
| Payable for Fund shares redeemed |
|
| — |
|
| — |
|
| 11,948 |
|
| 375 |
|
| Cash portion of dividends payable to shareholders |
|
| — |
|
| — |
|
| — |
|
| — |
|
| Other payables |
|
| 6,025 |
|
| 241 |
|
| — |
|
| 148,628 |
|
| Accrued investment management and advisory services fee |
|
| 10,196 |
|
| 15,742 |
|
| 66,400 |
|
| 207,396 |
|
|
|
|
|
|
|
| ||||||||
| Total liabilities |
|
| 29,854 |
|
| 162,638 |
|
| 444,482 |
|
| 697,224 |
|
|
|
|
|
|
|
| ||||||||
| Net assets applicable to outstanding capital stock |
| $ | 12,077,922 |
| $ | 19,349,320 |
| $ | 82,418,799 |
| $ | 217,968,611 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital (par value and paid-in surplus) |
| $ | 15,703,686 |
| $ | 17,805,017 |
| $ | 87,833,186 |
| $ | 185,888,238 |
|
| Undistributed (distributions in excess of) net investment income |
|
| 3,929 |
|
| 3,332 |
|
| 2,367 |
|
| (365,963 | ) |
| Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (5,251,335 | ) |
| 15,161 |
|
| (20,802,055 | ) |
| (35,589,348 | ) |
| Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 1,621,642 |
|
| 1,525,810 |
|
| 15,385,301 |
|
| 68,035,684 |
|
|
|
|
|
|
|
| ||||||||
|
|
| $ | 12,077,922 |
| $ | 19,349,320 |
| $ | 82,418,799 |
| $ | 217,968,611 |
|
|
|
|
|
|
|
| ||||||||
| Outstanding shares |
|
| 795,776 |
|
| 1,672,159 |
|
| 2,219,248 |
|
| 17,080,691 |
|
|
|
|
|
|
|
| ||||||||
| Net asset value per share of outstanding capital stock |
| $ | 15.18 |
| $ | 11.57 |
| $ | 37.14 |
| $ | 12.76 |
|
|
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
|
| ||||||||
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities, at identified cost |
| $ | 23,488,700 |
| $ | 173,427,580 |
| $ | 11,486,598 |
| $ | 9,571,204 |
|
|
|
|
|
|
|
| ||||||||
| Investments in securities, at market value - see accompanying schedules for detail |
| $ | 31,480,777 |
| $ | 228,557,539 |
| $ | 14,151,098 |
| $ | 14,336,548 |
|
| Investments in affiliated mutual funds |
|
| 347,000 |
|
| 11,925,000 |
|
| 406,000 |
|
| 814,000 |
|
| Cash in bank on demand deposit |
|
| 123,268 |
|
| 1,216 |
|
| 917 |
|
| 7,573 |
|
| Accrued interest and dividends receivable |
|
| 93,228 |
|
| 255,314 |
|
| 1,956 |
|
| 69,512 |
|
| Receivable for investment securities sold |
|
| — |
|
| 565,676 |
|
| — |
|
| — |
|
| Other receivables |
|
| — |
|
| 52,050 |
|
| — |
|
| 5,263 |
|
| Receivable for Fund shares sold |
|
| 56,199 |
|
| 126,769 |
|
| 53,882 |
|
| 72,995 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
| 32,100,472 |
|
| 241,483,564 |
|
| 14,613,853 |
|
| 15,305,891 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
| — |
|
| Payable for investment securities purchased |
|
| 116,000 |
|
| 325,761 |
|
| — |
|
| — |
|
| Payable for Fund shares redeemed |
|
| — |
|
| 83,368 |
|
| 16,195 |
|
| — |
|
| Cash portion of dividends payable to shareholders |
|
| — |
|
| — |
|
| — |
|
| — |
|
| Other payables |
|
| 29,061 |
|
| — |
|
| 13,983 |
|
| — |
|
| Accrued investment management and advisory services fee |
|
| 43,714 |
|
| 298,958 |
|
| 17,237 |
|
| 24,826 |
|
|
|
|
|
|
|
| ||||||||
| Total liabilities |
|
| 188,775 |
|
| 708,087 |
|
| 47,415 |
|
| 24,826 |
|
|
|
|
|
|
|
| ||||||||
| Net assets applicable to outstanding capital stock |
| $ | 31,911,697 |
| $ | 240,775,477 |
| $ | 14,566,438 |
| $ | 15,281,065 |
|
|
|
|
|
|
|
| ||||||||
| Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital (par value and paid-in surplus) |
| $ | 57,483,285 |
| $ | 234,915,696 |
| $ | 33,072,398 |
| $ | 12,095,003 |
|
| Undistributed (distributions in excess of) net investment income |
|
| (11,113 | ) |
| (680,306 | ) |
| (85,224 | ) |
| (8,698 | ) |
| Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (33,898,075 | ) |
| (60,514,872 | ) |
| (21,491,236 | ) |
| (2,384,324 | ) |
| Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 8,337,600 |
|
| 67,054,959 |
|
| 3,070,500 |
|
| 5,579,084 |
|
|
|
|
|
|
|
| ||||||||
|
|
| $ | 31,911,697 |
| $ | 240,775,477 |
| $ | 14,566,438 |
| $ | 15,281,065 |
|
|
|
|
|
|
|
| ||||||||
| Outstanding shares |
|
| 2,215,327 |
|
| 7,601,268 |
|
| 1,380,003 |
|
| 954,605 |
|
|
|
|
|
|
|
| ||||||||
| Net asset value per share of outstanding capital stock |
| $ | 14.40 |
| $ | 31.68 |
| $ | 10.56 |
| $ | 16.01 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
47
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Six Months Ended December 31, 2005 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
|
| ||||||||
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends * |
| $ | 60,722 |
| $ | 280,188 |
| $ | 369,480 |
| $ | 729,470 |
|
| Interest |
|
| 101,486 |
|
| 11,511 |
|
| 51,187 |
|
| 97,032 |
|
|
|
|
|
|
|
| ||||||||
| Total income |
|
| 162,208 |
|
| 291,699 |
|
| 420,667 |
|
| 826,502 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment management and advisory services fee |
|
| 61,074 |
|
| 86,489 |
|
| 362,394 |
|
| 1,296,755 |
|
| Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
| (104,290 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net expenses |
|
| 61,074 |
|
| 86,489 |
|
| 362,394 |
|
| 1,192,465 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
| 101,134 |
|
| 205,210 |
|
| 58,273 |
|
| (365,963 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Realized and unrealized gain (loss) on |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized gain (loss) |
|
| 266,264 |
|
| 118,304 |
|
| 1,169,477 |
|
| 6,001,506 |
|
| Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 321,872 |
|
| 732,090 |
|
| 4,563,370 |
|
| 19,820,586 |
|
| Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investments |
|
| 588,136 |
|
| 850,394 |
|
| 5,732,847 |
|
| 25,822,092 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
| $ | 689,270 |
| $ | 1,055,604 |
| $ | 5,791,120 |
| $ | 25,456,129 |
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
|
| ||||||||
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends * |
| $ | 212,743 |
| $ | 660,438 |
| $ | 10,888 |
| $ | 108,665 |
|
| Interest |
|
| 7,309 |
|
| 265,954 |
|
| 7,282 |
|
| 10,807 |
|
|
|
|
|
|
|
| ||||||||
| Total Income |
|
| 220,052 |
|
| 926,392 |
|
| 18,170 |
|
| 119,472 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment management and advisory services fee |
|
| 283,234 |
|
| 1,606,698 |
|
| 114,942 |
|
| 128,170 |
|
| Less fees and expenses absorbed by investment adviser |
|
| (53,833 | ) |
| — |
|
| (11,548 | ) |
| — |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net expenses |
|
| 229,401 |
|
| 1,606,698 |
|
| 103,394 |
|
| 128,170 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
| (9,349 | ) |
| (680,306 | ) |
| (85,224 | ) |
| (8,698 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Realized and unrealized gain (loss) on |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized gain (loss) |
|
| 536,536 |
|
| 2,628,476 |
|
| 632,842 |
|
| 13,293 |
|
| Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 4,435,382 |
|
| 24,986,945 |
|
| 1,642,019 |
|
| 2,655,124 |
|
| Realized gain (loss) on foreign currency transactions |
|
| 10 |
|
| — |
|
| — |
|
| (220 | ) |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investments |
|
| 4,971,928 |
|
| 27,615,421 |
|
| 2,274,861 |
|
| 2,668,197 |
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
| $ | 4,962,579 |
| $ | 26,935,115 |
| $ | 2,189,637 |
| $ | 2,659,499 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
49
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| ||||||||
|
|
|
| ||||||||||
|
| Six months |
| Year ended |
| Six months |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 101,134 |
| $ | 221,521 |
| $ | 205,210 |
| $ | 182,928 |
|
Net realized gain (loss) on investments |
|
| 266,264 |
|
| 200,246 |
|
| 118,304 |
|
| 174,285 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 321,872 |
|
| 426,322 |
|
| 732,090 |
|
| 671,537 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 689,270 |
|
| 848,089 |
|
| 1,055,604 |
|
| 1,028,750 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (150,000 | ) |
| (226,000 | ) |
| (266,000 | ) |
| (146,000 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| (225,199 | ) |
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (150,000 | ) |
| (226,000 | ) |
| (491,199 | ) |
| (146,000 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 506,696 |
|
| 1,225,645 |
|
| 5,114,365 |
|
| 7,459,382 |
|
Reinvested distributions |
|
| 148,800 |
|
| 223,911 |
|
| 463,766 |
|
| 128,579 |
|
Payments for shares redeemed |
|
| (1,368,090 | ) |
| (2,261,666 | ) |
| (988,883 | ) |
| (1,146,817 | ) |
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (712,594 | ) |
| (812,110 | ) |
| 4,589,248 |
|
| 6,441,144 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| (173,324 | ) |
| (190,021 | ) |
| 5,153,653 |
|
| 7,323,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 12,251,246 |
|
| 12,441,267 |
|
| 14,195,667 |
|
| 6,871,773 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period * |
| $ | 12,077,922 |
| $ | 12,251,246 |
| $ | 19,349,320 |
|
| 14,195,667 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 33,785 |
|
| 87,493 |
|
| 447,814 |
|
| 685,735 |
|
Reinvested distributions |
|
| 9,999 |
|
| 16,112 |
|
| 40,133 |
|
| 12,085 |
|
Redeemed |
|
| (91,395 | ) |
| (161,837 | ) |
| (85,061 | ) |
| (106,290 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| (47,611 | ) |
| (58,232 | ) |
| 402,886 |
|
| 591,530 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | 3,929 |
| $ | 52,795 |
| $ | 3,332 |
| $ | 64,122 |
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| ||||||||||||
|
|
|
|
| |||||||||||||||
|
| Six months |
| Year ended |
| Six months |
| Year ended |
| Six months |
| Year ended |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 58,273 |
| $ | 308,015 |
| ($ | 365,963 | ) | ($ | 1,290,166 | ) | ($ | 9,349 | ) | $ | 179,116 |
|
Net realized gain (loss) on investments |
|
| 1,169,476 |
|
| 1,598,533 |
|
| 6,001,506 |
|
| 18,274,052 |
|
| 536,536 |
|
| 1,683,427 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 4,563,371 |
|
| 2,685,949 |
|
| 19,820,586 |
|
| 1,928,476 |
|
| 4,435,383 |
|
| 1,267,378 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 9 |
|
| (3,346 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 5,791,120 |
|
| 4,592,497 |
|
| 25,456,129 |
|
| 18,912,362 |
|
| 4,962,579 |
|
| 3,126,575 |
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| (142,000 | ) |
| (233,010 | ) |
| — |
|
| — |
|
| (155,624 | ) |
| (88,998 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (142,000 | ) |
| (233,010 | ) |
| — |
|
| — |
|
| (155,624 | ) |
| (88,998 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 16,562,938 |
|
| 11,464,016 |
|
| 13,016,880 |
|
| 11,260,285 |
|
| 1,697,578 |
|
| 2,548,414 |
|
Reinvested distributions |
|
| 139,965 |
|
| 226,798 |
|
| — |
|
| — |
|
| 150,322 |
|
| 85,684 |
|
Payments for shares redeemed |
|
| (9,593,568 | ) |
| (10,164,271 | ) |
| (19,953,299 | ) |
| (35,669,542 | ) |
| (3,895,145 | ) |
| (10,801,021 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Increase (decrease) in net assets from capital share transactions |
|
| 7,109,335 |
|
| 1,526,543 |
|
| (6,936,419 | ) |
| (24,409,257 | ) |
| (2,047,245 | ) |
| (8,166,923 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Total increase (decrease) in net assets |
|
| 12,758,455 |
|
| 5,886,030 |
|
| 18,519,710 |
|
| (5,496,895 | ) |
| 2,759,710 |
|
| (5,129,346 | ) |
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 69,660,344 |
|
| 63,774,314 |
|
| 199,448,901 |
|
| 204,945,796 |
|
| 29,151,987 |
|
| 34,281,333 |
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period * |
| $ | 82,418,799 |
| $ | 69,660,344 |
| $ | 217,968,611 |
| $ | 199,448,901 |
| $ | 31,911,697 |
| $ | 29,151,987 |
|
|
|
|
|
|
|
|
| ||||||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 447,826 |
|
| 343,372 |
|
| 1,050,995 |
|
| 1,082,405 |
|
| 125,077 |
|
| 212,627 |
|
Reinvested distributions |
|
| 3,706 |
|
| 6,710 |
|
| — |
|
| — |
|
| 10,475 |
|
| 6,944 |
|
Redeemed |
|
| (264,913 | ) |
| (312,867 | ) |
| (1,654,212 | ) |
| (3,433,755 | ) |
| (288,071 | ) |
| (900,411 | ) |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 186,619 |
|
| 37,215 |
|
| (603,217 | ) |
| (2,351,350 | ) |
| (152,519 | ) |
| (680,840 | ) |
|
|
|
|
|
|
|
| ||||||||||||
* includes undistributed net investment income |
| $ | 2,367 |
| $ | 86,094 |
| $ | — |
| $ | — |
| $ | — |
| $ | 153,860 |
|
See accompanying notes to financial statements on page 54.
51
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
| Statements of Changes in Net Assets (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Cap |
| Science and |
| ||||||||
|
| Six months |
| Year ended |
| Six months |
| Year ended |
| ||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| ($ | 680,306 | ) | ($ | 1,932,354 | ) | ($ | 85,224 | ) | ($ | 158,065 | ) |
Net realized gain (loss) on investments |
|
| 2,628,476 |
|
| 2,422,217 |
|
| 632,842 |
|
| 614 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 24,986,945 |
|
| 15,168,019 |
|
| 1,642,019 |
|
| (1,479,200 | ) |
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) in net assets resulting from operations |
|
| 26,935,115 |
|
| 15,657,882 |
|
| 2,189,637 |
|
| (1,636,651 | ) |
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 46,996,351 |
|
| 10,163,917 |
|
| 501,075 |
|
| 1,110,784 |
|
Reinvested distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
| (13,700,919 | ) |
| (45,087,231 | ) |
| (2,666,481 | ) |
| (3,985,450 | ) |
Increase (decrease) in net assets from capital share transactions |
|
| 33,295,432 |
|
| (34,923,314 | ) |
| (2,165,406 | ) |
| (2,874,666 | ) |
Total increase (decrease) in net assets |
|
| 60,230,547 |
|
| (19,265,432 | ) |
| 24,231 |
|
| (4,511,317 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 180,544,930 |
|
| 199,810,362 |
|
| 14,542,207 |
|
| 19,053,524 |
|
End of period * |
| $ | 240,775,477 |
| $ | 180,544,930 |
| $ | 14,566,438 |
| $ | 14,542,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
| 1,541,013 |
|
| 406,347 |
|
| 48,729 |
|
| 120,559 |
|
Reinvested distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
| (448,620 | ) |
| (1,796,847 | ) |
| (260,480 | ) |
| (429,929 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 1,092,393 |
|
| (1,390,500 | ) |
| (211,751 | ) |
| (309,370 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Developing Markets |
| ||||
|
| Six months |
| Year ended |
| ||
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| ($ | 8,698 | ) | $ | 48,117 |
|
Net realized gain (loss) on investments |
|
| 13,293 |
|
| 449,916 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 2,655,124 |
|
| 1,886,718 |
|
Net realized gain (loss) on foreign currency transactions |
|
| (220 | ) |
| 3,383 |
|
Net increase (decrease) in net assets resulting from operations |
|
| 2,659,499 |
|
| 2,388,134 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
| (51,306 | ) |
| (13,238 | ) |
Net realized gains on investments |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (51,306 | ) |
| (13,238 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
| 5,123,394 |
|
| 5,091,018 |
|
Reinvested distributions |
|
| 50,250 |
|
| 12,927 |
|
Payments for shares redeemed |
|
| (3,075,666 | ) |
| (4,934,365 | ) |
Increase (decrease) in net assets from capital share transactions |
|
| 2,097,978 |
|
| 169,580 |
|
Total increase (decrease) in net assets |
|
| 4,706,171 |
|
| 2,544,476 |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 10,574,894 |
|
| 8,030,418 |
|
End of period * |
| $ | 15,281,065 |
| $ | 10,574,894 |
|
|
|
|
|
|
|
|
|
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
| 341,284 |
|
| 427,219 |
|
Reinvested distributions |
|
| 3,184 |
|
| 1,121 |
|
Redeemed |
|
| (205,152 | ) |
| (425,079 | ) |
|
|
|
|
|
|
|
|
Net increase (decrease) |
|
| 139,316 |
|
| 3,261 |
|
|
|
|
|
|
|
|
|
| |||||||
* includes undistributed net investment income |
| $ | — |
| $ | 51,306 |
|
See accompanying notes to financial statements on page 54.
53
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
| (1) | Summary of Significant Accounting Policies |
|
|
|
|
| Sit Mutual Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Developing Markets Growth, Sit Small Cap Growth, Sit Dividend Growth, Sit International Growth, Sit Balanced, and Sit Science and Technology Growth Funds are series funds of Sit Mutual Funds, Inc. |
|
|
|
|
| This report covers the equity funds of the Sit Mutual Funds (the Funds). Each Fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows: |
|
|
Fund | Investment Objective |
Balanced | Long-term capital growth consistent with the preservation of principal and to provide regular income. |
Dividend Growth | Provide regular income that exceeds the dividend yield of the S&P 500 Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
Large Cap Growth Fund, Inc. | Maximize long-term capital appreciation. |
Mid Cap Growth Fund, Inc. | Maximize long-term capital appreciation. |
International Growth | Maximize long-term growth. |
Small Cap Growth | Maximize long-term capital appreciation. |
Science and Technology | Maximize long-term capital appreciation. |
Developing Markets Growth | Maximize long-term capital appreciation. |
|
|
|
|
| Significant accounting policies followed by the Funds are summarized below: |
|
|
|
|
| Short-Term Trading (Redemption) Fees |
|
| The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. |
|
|
|
|
| Investments in Securities |
|
| Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Securities traded on the over-the-counter market are valued |
54
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
| at the last reported sales price or if the last sales price is not available at the last reported bid price. The sale and bid prices are obtained from independent pricing services. Debt securities maturing more than 60 days are priced by an independent pricing service. When market quotations are not readily available, or when the Advisor 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. Debt securities maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost. |
|
|
|
|
| Security transactions are accounted for on the date the securities are purchased or sold. Securities gains and losses are calculated on the identified-cost basis. Dividend income is recorded on the ex-dividend date or upon the receipt of ex-dividend notification in the case of certain foreign securities. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. |
|
|
|
|
| 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 six months ended December 31, 2005. |
|
|
|
|
| Illiquid Securities |
|
| Each Fund currently limits investments in illiquid securities to 15% of net assets. At December 31, 2005, there were no securities held by the Funds deemed illiquid by the investment adviser. Pursuant to the guidelines adopted by the Board of Directors, certain unregistered securities are determined to be liquid and are not included within the limitation specified above. |
|
|
|
|
| Foreign Currency Translations and Forward Foreign Currency Contracts |
|
| The market value of securities and other assets and liabilities denominated in foreign currencies for Developing Markets Growth Fund and International Growth Fund are translated daily into U.S. dollars at the closing rate of exchange (approximately 12:30 p.m. E.S.T). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses. |
|
|
|
|
| The Developing Markets Growth and International Growth Funds may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract. |
55
|
|
|
|
|
|
|
|
|
|
| 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. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis. |
|
|
|
|
| Net investment income and net realized gains differ for financial statement and tax purposes because of losses deferred due to “wash sale” transactions. A “wash sale” occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). 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. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. |
|
|
|
|
| As of June 30, 2005, for federal income tax purposes, some Funds have capital loss carryovers which, if not offset by subsequent capital gains, will begin to expire as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss Carryover |
|
| Expiration Years |
| ||
| Balanced |
| $ | 5,429,946 |
|
|
| 2010-2013 |
|
| Large Cap Growth |
|
| 21,850,429 |
|
|
| 2010-2012 |
|
| Mid Cap Growth |
|
| 41,402,552 |
|
|
| 2010-2012 |
|
| International Growth |
|
| 34,433,548 |
|
|
| 2009-2014 |
|
| Small Cap Growth |
|
| 63,138,159 |
|
|
| 2010-2012 |
|
| Science & Technology Growth |
|
| 21,986,091 |
|
|
| 2010-2013 |
|
| Developing Markets Growth |
|
| 2,397,397 |
|
|
| 2008-2011 |
|
|
|
|
|
| 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, if any, are declared and paid quarterly for the Balanced and Dividend Growth Funds and declared and paid annually for Science and Technology Growth, Developing Markets Growth, Small Cap Growth, International Growth, Mid Cap Growth, and Large Cap Growth Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds. |
|
|
|
|
| Concentration of Investments |
|
| The Developing Markets Growth Fund may concentrate investments in countries with limited or developing capital markets which may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund’s investments and the income it generates, as well as the Fund’s ability to repatriate such amounts. |
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
| Use of Estimates |
|
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. Actual results could differ from those estimates. |
|
|
|
| (2) | Investment Security Transactions |
|
|
|
|
| Purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended December 31, 2005, were as follow: |
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| ||
| Balanced Fund |
| 2,698,689 |
|
| 3,589,298 |
|
|
| Dividend Growth |
| 7,843,194 |
|
| 3,394,504 |
|
|
| Large Cap Growth Fund |
| 14,005,673 |
|
| 9,070,333 |
|
|
| Mid Cap Growth Fund |
| 34,748,759 |
|
| 45,841,641 |
|
|
| International Growth Fund |
| 3,150,020 |
|
| 5,333,150 |
|
|
| Small Cap Growth Fund |
| 68,469,990 |
|
| 41,975,661 |
|
|
| Science and Technology Growth Fund |
| 3,031,223 |
|
| 4,777,864 |
|
|
| Developing Markets Growth Fund |
| 2,605,266 |
|
| 520,799 |
|
|
|
|
|
| (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. The current fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of: |
|
|
|
|
|
|
|
|
|
| Contractual |
| Net of Adviser’s |
|
|
|
|
|
| ||
| Balanced Fund |
| 1.00% |
| 1.00% |
|
| Dividend Growth Fund |
| 1.00% |
| 1.00% |
|
| Large Cap Growth Fund |
| 1.00% |
| 1.00% |
|
| Mid Cap Growth Fund |
| 1.25% |
| 1.15% |
|
| International Growth Fund |
| 1.85% |
| 1.50% |
|
| Small Cap Growth Fund |
| 1.50% |
| 1.50% |
|
| Science and Technology Growth Fund |
| 1.50% |
| 1.35% |
|
| Developing Markets Growth Fund |
| 2.00% |
| 2.00% |
|
|
|
|
|
| SIA 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). |
57
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
|
|
| For the periods through December 31, 2006 the Adviser has agreed to limit the management fee of the Mid Cap Growth Fund, Science and Technology Growth Fund, and International Growth Fund to 1.15%, 1.35%, and 1.50% of the Fund’s average daily net assets, respectively. |
|
|
|
|
| The Funds invest in the Sit Money Market Fund. The terms of such transactions were identical to those of non-related entities except that, to avoid duplicate investment advisory fees, SIA remits to each Fund an amount equal to all fees otherwise due to them under their investment management agreement for the assets invested in the Sit Money Market Fund. The Funds owned the following shares as of December 31, 2005: |
|
|
|
|
|
|
Fund |
|
|
| Shares |
|
|
|
|
| ||
Balanced Fund |
|
| 98,000 |
| |
Dividend Growth Fund |
|
| 293,000 |
| |
Large Cap Growth Fund |
|
| 5,501,000 |
| |
Mid Cap Growth Fund |
|
| 9,235,000 |
| |
International Growth Fund |
|
| 347,000 |
| |
Small Cap Growth Fund |
|
| 11,925,000 |
| |
Science and Technology Growth Fund |
|
| 406,000 |
| |
Developing Markets Growth Fund |
|
| 814,000 |
|
|
|
|
|
| Investment Sub-Adviser |
|
| SIA has entered into a sub-advisory arrangement with an affiliated international investment adviser, Sit/Kim International Investment Associates, Inc. (“SKI”). SKI provides investment research information and portfolio management service for the Developing Markets Growth Fund and International Growth Fund. Generally, as compensation for its services under the sub-advisory agreement, SIA pays SKI a monthly fee of 1/12 of .75% (.65% net of waiver for the International Growth Fund) on the first $100 million of each Fund’s average daily net assets, 1/12 of .50% on the next $100 million of average daily net assets and 1/12 of .40% of average daily net assets in excess of $200 million. SKI has agreed to waive any fees under the agreement to the extent that cumulative out of pocket expenses of each Fund borne by SIA exceed the cumulative fees received by SIA pursuant to each Fund’s investment management agreement. In accordance with the agreement, fees of $147,305 were paid or payable to SKI for the six months ended December 31, 2005. |
|
|
|
|
| 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 December 31, 2005: |
|
|
|
|
|
|
|
|
|
|
| Shares |
|
| % Shares |
|
|
|
|
|
|
| ||
Balanced Fund |
|
| 218,100 |
|
| 27.4 |
|
Dividend Growth Fund |
|
| 470,565 |
|
| 28.1 |
|
Large Cap Growth Fund |
|
| 416,172 |
|
| 18.8 |
|
Mid Cap Growth Fund |
|
| 3,130,287 |
|
| 18.3 |
|
International Growth Fund |
|
| 758,488 |
|
| 34.2 |
|
Small Cap Growth Fund |
|
| 928,172 |
|
| 12.2 |
|
Science and Technology Growth Fund |
|
| 617,521 |
|
| 44.7 |
|
Developing Markets Growth Fund |
|
| 178,800 |
|
| 18.7 |
|
58
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
59
|
|
|
|
|
|
|
|
|
|
| Sit Balanced Fund |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| 2005 |
| Years Ended June 30, |
| |||||||||||
|
|
| (Unaudited) |
| 2005 |
| 2004 |
|
| 2003 |
|
| 2002 |
| |||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
| $ | 12.29 |
| $ | 15.33 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (2) |
|
| .12 |
|
| .26 |
|
| .21 |
|
| .29 |
|
| .36 |
|
| Net realized and unrealized gains (losses) on investments |
|
| .71 |
|
| .73 |
|
| 1.34 |
|
| .22 |
|
| (3.01 | ) |
| Total from operations |
|
| .83 |
|
| .99 |
|
| 1.55 |
|
| .51 |
|
| (2.65 | ) |
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
| (.18 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
| (.38 | ) |
| From realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.01 | ) |
| Total distributions |
|
| (.18 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
| (.39 | ) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
| $ | 15.18 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
| $ | 12.29 |
|
| Total investment return (1) |
|
| 5.77 | % |
| 7.28 | % |
| 12.53 | % |
| 4.43 | % |
| (17.62 | %) |
| Net assets at end of period (000’s omitted) |
| $ | 12,078 |
| $ | 12,251 |
| $ | 12,441 |
| $ | 16,065 |
| $ | 17,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| Net investment income to average daily net assets |
|
| 1.66 | % (3) |
| 1.84 | % |
| 1.58 | % |
| 2.54 | % |
| 2.52 | % |
| Portfolio turnover rate (excluding short-term securities) |
|
| 22.30 | % |
| 36.32 | % |
| 44.82 | % |
| 48.86 | % |
| 53.53 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
|
| (3) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. |
60
|
|
|
|
|
|
|
|
| |
| Sit Dividend Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
| |
|
|
| Ended |
| Year |
| Six months |
| |||
|
|
| December 31, |
| Ended |
| Ended |
| |||
|
|
| 2005 |
| June 30, |
| June 30, |
| |||
|
|
| (Unaudited) |
| 2005 |
| 2004 |
| |||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
| $ | 11.18 |
| $ | 10.14 |
| $ | 10.00 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (2) |
|
| .14 |
|
| .21 |
|
| .08 |
|
| Net realized and unrealized gains (losses) on investments |
|
| .57 |
|
| 1.01 |
|
| .10 |
|
| Total from operations |
|
| .71 |
|
| 1.22 |
|
| .18 |
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
| (.18 | ) |
| (.18 | ) |
| (.04 | ) |
| From realized gains |
|
| (.14 | ) |
| — |
|
| — |
|
| Total distributions |
|
| (.32 | ) |
| (.18 | ) |
| (.04 | ) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
| End of period |
| $ | 11.57 |
| $ | 11.18 |
| $ | 10.14 |
|
| Total investment return (1) |
|
| 6.37 | % |
| 12.12 | % |
| 1.75 | % |
| Net assets at end of period (000’s omitted) |
| $ | 19,349 |
| $ | 14,196 |
| $ | 6,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| Net investment income (loss) to average daily net assets |
|
| 2.37 | % (3) |
| 1.94 | % |
| 1.79 | % |
| Portfolio turnover rate (excluding short-term securities) |
|
| 20.40 | % |
| 54.89 | % |
| 13.67 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
|
| (3) | Percentages are adjusted to an annual rate. |
See accompanying notes to financial statements on page 54.
61
|
|
|
|
|
|
|
|
|
|
| Sit Large Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| ||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||
| |||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
| $ | 26.40 |
| $ | 38.99 |
|
| |||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (2) |
|
| .03 |
|
| .16 |
|
| .01 |
|
| .02 |
|
| (.08 | ) |
| Net realized and unrealized gains |
|
| 2.91 |
|
| 2.27 |
|
| 5.05 |
|
| .50 |
|
| (12.17 | ) |
| |||||||||||||||||
| Total from operations |
|
| 2.94 |
|
| 2.43 |
|
| 5.06 |
|
| .52 |
|
| (12.25 | ) |
| |||||||||||||||||
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
| — |
|
| From realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.34 | ) |
| |||||||||||||||||
| Total distributions |
|
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
| (.34 | ) |
| |||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
| $ | 37.14 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
| $ | 26.40 |
|
| |||||||||||||||||
| Total investment return (1) |
|
| 8.57 | % |
| 7.62 | % |
| 18.81 | % |
| 1.97 | % |
| (31.63 | %) |
| |||||||||||||||||
| Net assets at end of period (000’s omitted) |
| $ | 82,419 |
| $ | 69,660 |
| $ | 63,774 |
| $ | 59,324 |
| $ | 63,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| Net investment income (loss) to average daily net assets |
|
| 0.16 | % (3) |
| 0.49 | % |
| 0.02 | % |
| 0.08 | % |
| (0.25 | %) |
| Portfolio turnover rate (excluding short-term securities) |
|
| 12.85 | % |
| 23.22 | % |
| 29.71 | % |
| 33.40 | % |
| 34.74 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
|
| (3) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. |
62
|
|
|
|
|
|
|
|
| |
| Sit Mid Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| ||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||
| |||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
| $ | 7.91 |
| $ | 12.37 |
|
| |||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (3) |
|
| (.02 | ) |
| (.07 | ) |
| (.07 | ) |
| (.05 | ) |
| (.07 | ) |
| Net realized and unrealized gains |
|
| 1.50 |
|
| 1.12 |
|
| 2.24 |
|
| .20 |
|
| (4.16 | ) |
| |||||||||||||||||
| Total from operations |
|
| 1.48 |
|
| 1.05 |
|
| 2.17 |
|
| .15 |
|
| (4.23 | ) |
| |||||||||||||||||
| Distributions to Shareholders: |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| From net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.23 | ) |
| |||||||||||||||||
| Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.23 | ) |
| |||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
| $ | 12.76 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
| $ | 7.91 |
|
| |||||||||||||||||
| Total investment return (1) |
|
| 13.12 | % |
| 10.26 | % |
| 26.92 | % |
| 1.90 | % |
| (34.66 | %) |
| |||||||||||||||||
| Net assets at end of period (000’s omitted) |
| $ | 217,969 |
| $ | 199,449 |
| $ | 204,946 |
| $ | 170,173 |
| $ | 181,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
| 1.15 | %(2) |
| 1.15 | %(2) |
| 1.15 | %(2) |
| 1.15 | %(2) |
| 1.15 | %(2) |
| Net investment income (loss) to average daily net assets |
|
| (0.35 | %)(2) |
| (0.66 | %)(2) |
| (0.71 | %)(2) |
| (0.73 | %)(2) |
| (0.79 | %)(2) |
| Portfolio turnover rate (excluding short-term securities) |
|
| 17.18 | % |
| 39.74 | % |
| 65.14 | % |
| 53.19 | % |
| 60.88 | % |
|
|
|
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. Total Fund expenses are contractually limited to 1.25% of average daily net assets. However, during the period ended December 31, 2005 and the years ended June 30, 2005, 2004, 2003, and 2002 the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.25% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have been (0.45%), (0.76%), (0.81%), (0.83%), and (0.89%), respectively. |
|
|
|
| (3) | The net investment income (loss) per share is based on average shares outstanding for the period. |
See accompanying notes to financial statements on page 54.
63
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
| |||||||||||||
|
|
|
|
|
| ||||||||||||||
|
|
|
| Years Ended June 30, |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||||
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Beginning of period |
|
| $ | 12.31 |
|
| $ | 11.24 |
| $ | 9.39 |
| $ | 10.79 |
| $ | 14.61 |
|
| |||||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (3) |
|
|
| .00 |
|
|
| .07 |
|
| .01 |
|
| .07 |
|
| (.03 | ) |
| Net realized and unrealized gains (losses) on investments |
|
|
| 2.16 |
|
|
| 1.03 |
|
| 1.92 |
|
| (1.47 | ) |
| (3.79 | ) |
| |||||||||||||||||||
| Total from operations |
|
|
| 2.16 |
|
|
| 1.10 |
|
| 1.93 |
|
| (1.40 | ) |
| (3.82 | ) |
| |||||||||||||||||||
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
| (.07 | ) |
|
| (.03 | ) |
| (.08 | ) |
| — |
|
| — |
|
| From realized gains |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| |||||||||||||||||||
| Total distributions |
|
|
| (.07 | ) |
|
| (.03 | ) |
| (.08 | ) |
| — |
|
| — |
|
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
| $ | 14.40 |
|
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
| $ | 10.79 |
|
| |||||||||||||||||||
| Total investment return (1) |
|
|
| 17.55 | % |
|
| 9.80 | % |
| 20.63 | % |
| (12.97 | %) |
| (26.15 | %) |
| |||||||||||||||||||
| Net assets at end of period (000’s omitted) |
|
| $ | 31,912 |
|
| $ | 29,152 |
| $ | 34,281 |
| $ | 48,533 |
| $ | 69,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
|
| 1.50 | % (2) |
|
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| Net investment income (loss) to average daily net assets |
|
|
| (0.06 | %) (2) |
|
| 0.56 | % (2) |
| 0.14 | % (2) |
| 0.81 | % (2) |
| (0.22 | %) (2) |
| Portfolio turnover rate (excluding short-term securities) |
|
|
| 10.77 | % |
|
| 28.27 | % |
| 44.37 | % |
| 21.02 | % |
| 25.78 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. |
|
| Total Fund expenses are contractually limited to 1.85% of average daily net assets. |
|
| However, during the period ended December 31, 2005 and the years ended June 30, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.85% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have have been (0.41%), 0.21%, (0.21%), 0.46%, and (0.57%), respectively. |
|
|
|
| (3) | The net investment income (loss) per share is based on average shares outstanding for the period. |
64
|
|
|
|
|
|
|
|
| |
| Sit Small Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
| |||||||||||||
|
|
|
|
|
| ||||||||||||||
|
|
|
| Years Ended June 30, |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||||
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Beginning of period |
|
| $ | 27.74 |
|
| $ | 25.29 |
| $ | 21.64 |
| $ | 21.06 |
| $ | 28.99 |
|
| |||||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (2) |
|
|
| (.10 | ) |
|
| (.27 | ) |
| (.27 | ) |
| (.18 | ) |
| (.24 | ) |
| Net realized and unrealized gains (losses) on investments |
|
|
| 4.04 |
|
|
| 2.72 |
|
| 3.92 |
|
| .76 |
|
| (7.65 | ) |
| |||||||||||||||||||
| Total from operations |
|
|
| 3.94 |
|
|
| 2.45 |
|
| 3.65 |
|
| .58 |
|
| (7.89 | ) |
| |||||||||||||||||||
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From realized gains |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| (.04 | ) |
| |||||||||||||||||||
| Total distributions |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| (.04 | ) |
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
| $ | 31.68 |
|
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
| $ | 21.06 |
|
| |||||||||||||||||||
| Total investment return (1) |
|
|
| 14.20 | % |
|
| 9.69 | % |
| 16.87 | % |
| 2.75 | % |
| (27.24 | %) |
| |||||||||||||||||||
| Net assets at end of period (000’s omitted) |
|
| $ | 240,775 |
|
| $ | 180,545 |
| $ | 199,810 |
| $ | 182,912 |
| $ | 180,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
|
| 1.50 | % (3) |
|
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| Net investment income (loss) to average daily net assets |
|
|
| (0.63 | %) (3) |
|
| (1.08 | %) |
| (1.10 | %) |
| (1.00 | %) |
| (0.99 | %) |
| Portfolio turnover rate (excluding short-term securities) |
|
|
| 20.58 | % |
|
| 33.75 | % |
| 65.79 | % |
| 59.98 | % |
| 65.25 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
|
| (3) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. |
|
|
|
See accompanying notes to financial statements on page 54.
65
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
| |||||||||||||
|
|
|
|
|
| ||||||||||||||
|
|
|
| Years Ended June 30, |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||||
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Beginning of period |
|
| $ | 9.14 |
|
| $ | 10.02 |
| $ | 8.05 |
| $ | 7.52 |
| $ | 15.23 |
|
| |||||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (3) |
|
|
| (.06 | ) |
|
| (.09 | ) |
| (.11 | ) |
| (.07 | ) |
| (.12 | ) |
| Net realized and unrealized gains (losses) on investments |
|
|
| 1.48 |
|
|
| (.79 | ) |
| 2.08 |
|
| .60 |
|
| (7.58 | ) |
| |||||||||||||||||||
| Total from operations |
|
|
| 1.42 |
|
|
| (.88 | ) |
| 1.97 |
|
| .53 |
|
| (7.70 | ) |
| |||||||||||||||||||
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| From realized gains |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| (.01 | ) |
| |||||||||||||||||||
| Total distributions |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| (.01 | ) |
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
| $ | 10.56 |
|
| $ | 9.14 |
| $ | 10.02 |
| $ | 8.05 |
| $ | 7.52 |
|
| |||||||||||||||||||
| Total investment return (1) |
|
|
| 15.54 | % |
|
| (8.78 | %) |
| 24.47 | % |
| 7.05 | % |
| (50.57 | %) |
| |||||||||||||||||||
| Net assets at end of period (000’s omitted) |
|
| $ | 14,566 |
|
| $ | 14,542 |
| $ | 19,054 |
| $ | 15,200 |
| $ | 14,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses to average daily net assets |
|
|
| 1.35 | % (2) |
|
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| Net investment income (loss) to average net assets |
|
|
| (1.11 | %) (2) |
|
| (0.99 | %) (2) |
| (1.20 | %) (2) |
| (1.05 | %) (2) |
| (1.06 | %) (2) |
| Portfolio turnover rate (excluding short-term securities) |
|
|
| 20.59 | % |
|
| 37.55 | % |
| 55.54 | % |
| 49.67 | % |
| 76.78 | % |
|
|
|
| ||
| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
|
| (2) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. Total Fund expenses are contractually limited to 1.50% of average daily net assets. However, during the period ended December 31, 2005 and the years ended June 30, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.50% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have been (1.26%), (1.14%), (1.35%), (1.20%), and (1.21%), respectively. |
|
|
|
| (3) | The net investment income (loss) per share is based on average shares outstanding for the period. |
66
|
|
|
|
|
|
|
|
| |
| Sit Developing Markets Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
|
|
| |||||||||||||
|
|
|
|
|
| ||||||||||||||
|
|
|
| Years Ended June 30, |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
|
|
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| ||||||||
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Beginning of period |
|
| $ | 12.97 |
|
| $ | 9.89 |
| $ | 8.12 |
| $ | 8.10 |
| $ | 9.17 |
|
| |||||||||||||||||||
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) (2) |
|
|
| (.01 | ) |
|
| .06 |
|
| .04 |
|
| .02 |
|
| (.02 | ) |
| Net realized and unrealized gains (losses) on investments |
|
|
| 3.10 |
|
|
| 3.04 |
|
| 1.78 |
|
| — |
|
| (1.05 | ) |
| |||||||||||||||||||
| Total from operations |
|
|
| 3.09 |
|
|
| 3.10 |
|
| 1.82 |
|
| .02 |
|
| (1.07 | ) |
| |||||||||||||||||||
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
| (.06 | ) |
|
| (.02 | ) |
| (.05 | ) |
| — |
|
| — |
|
| From realized gains |
|
|
| — |
|
|
| — |
|
| — |
|
| — |
|
| — |
|
| |||||||||||||||||||
| Total distributions |
|
|
| (.06 | ) |
|
| (.02 | ) |
| (.05 | ) |
| — |
|
| — |
|
| |||||||||||||||||||
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
| $ | 16.01 |
|
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
| $ | 8.10 |
|
| |||||||||||||||||||
| Total investment return (1) |
|
|
| 23.87 | % |
|
| 31.32 | % |
| 22.48 | % |
| 0.25 | % |
| (11.66 | %) |
| |||||||||||||||||||
| Net assets at end of period (000’s omitted) |
|
| $ | 15,281 |
|
| $ | 10,575 |
| $ | 8,030 |
| $ | 8,577 |
| $ | 11,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Expenses to average daily net assets |
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| 2.00 | % (3) |
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| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| Net investment income (loss) to average daily net assets |
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| (0.14 | %) (3) |
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| 0.55 | % |
| 0.37 | % |
| 0.31 | % |
| (0.20 | %) |
| Portfolio turnover rate (excluding short-term securities) |
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| 4.30 | % |
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| 29.54 | % |
| 33.72 | % |
| 6.61 | % |
| 25.40 | % |
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| (1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
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| (2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
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| (3) | Percentages for the period ended December 31, 2005 are adjusted to an annual rate. |
See accompanying notes to financial statements on page 54.
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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.
Actual Expenses
Hypothetical Example for Comparison Purposes
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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Balanced Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,057.70 | $5.16 |
Hypothetical | $1,000.00 | $1,020.00 | $5.06 |
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Dividend Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,063.70 | $5.17 |
Hypothetical | $1,000.00 | $1,020.00 | $5.06 |
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| Expense Example (Continued) |
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Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,085.70 | $5.23 |
Hypothetical | $1,000.00 | $1,020.00 | $5.06 |
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Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,131.20 | $6.14 |
Hypothetical | $1,000.00 | $1,019.25 | $5.82 |
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International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,175.50 | $8.18 |
Hypothetical | $1,000.00 | $1,017.50 | $7.59 |
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Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,142.00 | $8.05 |
Hypothetical | $1,000.00 | $1,017.50 | $7.59 |
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Science and Technology Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,155.40 | $7.29 |
Hypothetical | $1,000.00 | $1,018.25 | $6.83 |
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| Expense Example (Continued) |
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Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,238.70 | $11.22 |
Hypothetical | $1,000.00 | $1,015.00 | $10.10 |
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PROXY VOTING
Each Fund follows certain policies and procedures for voting proxies for securities held in each portfolio. A description of the Funds’ proxy voting polices and procedures is available without charge upon request by calling the Funds at 1-800-332-5580.
Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available 1) without charge upon request by calling the Funds at 1-800-332-5580; and 2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds’ annual and semi-annual reports include complete lists of each portfolio’s holdings. For the first and third quarters of each fiscal year, the Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) on Forms N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580.
RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS AND SUB-ADVISORY AGREEMENTS
71
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| Additional Information (Continued) |
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Investment Philosophy and Process
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Investment Performance
Non-Advisory Services
73
Sit Mutual Funds are managed by Sit Investment Associates, Inc. Sit Investment Associates was founded by Eugene C. Sit in July 1981 and is dedicated to a single purpose, to be one of the premier investment management firms in the United States. Sit Investment Associates currently manages approximately $6.5 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of thirteen no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
Sit Mutual Funds offer:
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| • | Free telephone exchange |
| • | Dollar-cost averaging through an automatic investment plan |
| • | Electronic transfer for purchases and redemptions |
| • | Free checkwriting privileges on bond funds |
| • | Retirement accounts including IRAs and 401(k) plans |
74
S E M I - A N N U A L R E P O R T S T O C K F U N D S Six Months Ended December 31, 2005 | |
INVESTMENT ADVISER Sit Investment Associates, Inc. 3300 IDS Center, 80 South Eighth Street Minneapolis, MN 55402 612-334-5888 (Metro Area) 800-332-5580 DISTRIBUTOR SIA Securities Corp. 3300 IDS Center, 80 South Eighth Street Minneapolis, MN 55402 612-334-5888 (Metro Area) 800-332-5580 CUSTODIAN PFPC Trust Company P.O. Box 9763 Providence, RI 02940 TRANSFER AGENT AND DISBURSING AGENT PFPC, Inc. P.O. Box 9763 Providence, RI 02940 | AUDITORS KPMGLLP 90 South Seventh Street, Suite 4200 Minneapolis, MN 55402 LEGAL COUNSEL Dorsey & WhitneyLLP 220 South Sixth Street, Suite 1500 Minneapolis, MN 55402 INVESTMENT SUB-ADVISER (Developing Markets Growth Fund and International Growth Fund) Sit/Kim International Associates, Inc. 3300 IDS Center, 80 South Eighth Street Minneapolis, MN 55402 612-334-5888 (Metro Area) 800-332-5580 |
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 MID CAP GROWTH FUND, INC.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date February 28, 2006
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 LARGE CAP GROWTH FUND, INC.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date February 28, 2006
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, INC.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date February 28, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date February 28, 2006