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)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2006
Date of reporting period: June 30, 2006
Item 1: Reports to Stockholders
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03343
Sit Large Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2006
Date of reporting period: June 30, 2006
Item 1: Reports to Stockholders
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2006
Date of reporting period: June 30, 2006
Item 1: Reports to Stockholders
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Sit Mutual Funds
Year Ended June 30, 2006
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 ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments |
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Sit Mutual Funds | |
One Year Ended June 30, 2006 | |
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Dear Fellow Shareholders:
U.S. stocks overcame numerous obstacles, most notably higher interest rates and oil prices, to post solid returns over the past year. Although these issues, along with geopolitical concerns, have recently led to a market correction, we see potential for a more positive environment to emerge for equities as the year progresses.
Economic Overview
Despite remarkably strong growth in Gross Domestic Product (GDP) of +5.6% for the first quarter of 2006, we believe the economy is in the midst of transitioning to a moderate growth environment, as the lagged impact of higher interest rates and energy prices take their toll. The data confirming this slowdown has been overwhelming in recent weeks, with deceleration in key statistics related to housing, employment, retail sales, and manufacturing. One of the greatest risks to the economic outlook is clearly housing. Fundamental data show the inventory of unsold homes hitting record highs, new house price increases are slowing markedly, and the rise in mortgage rates is negatively impacting housing affordability. Although we are monitoring these trends carefully, it is important to note that housing represents only 5.4% of GDP. And while the U.S. consumer may bear the brunt of the slowdown from weaker housing, higher gas prices, and higher interest rates, there are enough positives that should allow the economy to sustain growth. Some of these factors include strong corporate balance sheets, continued growth in the labor market, low inventory levels in most industries, pent-up demand for business spending, and solid growth in many economies outside the U.S. We forecast GDP growth of +3.0% for the second quarter of 2006, with this rate of growth continuing in the second half of the year.
Inflation has clearly been on the rise, as the headline Consumer Price Index rose +0.4% in May, following a +0.6% rise in April. While some of the recent increases directly relate to higher energy costs, the “core” CPI, which excludes food and energy, increased by +0.3% in
May for the third straight month. This is notable because it represents the first time in over eleven years that there have been three consecutive increases of this magnitude. Signs of economic moderation are apparent, and the Federal Reserve paused in raising the Federal Funds rate at the August 8th meeting but held out the possibility of further increases as economic conditions warrant.
In terms of fiscal policy, although the long-term picture continues to look challenging on several fronts, the recent statistics on the federal budget outlook continue to improve. For the first nine months of the current fiscal year, the deficit is approximately $40 billion less than at this time in 2005. Estimates of the 2006 fiscal year deficit are now $300 billion or less, down from $318 billion in 2005 and $412 billion in 2004. Spending on Iraq this year is estimated at $120 billion, thereby providing significant potential for further deficit reduction, which will be needed as the wave of retiring baby boomers begins to tap the entitlement system.
Equity Strategy Summary
Despite a modest setback in the most recent quarter, all major domestic stock indices posted positive returns over the last twelve months. Once again, there were significant performance variations across capitalizations (smaller stocks did better than larger stocks), styles (value outperformed growth), and sectors (energy/commodities outperformed other groups).
The stock market could remain unsettled over the near-term, as investors struggle with geopolitical concerns and the impact of higher interest rates. We believe, however, that fundamentals support a positive outlook over the intermediate- and longer-term, based on several key factors. First, although we project a slowdown in the U.S. economy from the unsustainable pace of the last several quarters, we believe the economic environment will remain strong enough to support healthy corporate profit growth for the overall market. Second, there is a strong possibility that the
2
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string of Federal Reserve rate increases may be nearing an end as slowing growth reduces inflation fears. Stocks have historically responded favorably at the end of a tightening cycle. Third, the S&P 500 Index is now trading at 14 times the next twelve month’s projected earnings, representing the lowest P/E ratio in many years. Fourth, corporate balance sheets remain exceptionally strong, lending support for continued growth in capital spending, share repurchases, dividend increases, and merger and acquisition activity.
Clearly, a moderation in the economy will have some impact on corporate earnings, and we expect a gradual deceleration in the rate of profit growth for the overall market to occur throughout this year and into 2007. Importantly, this has historically provided a positive backdrop for growth stocks relative to value issues, as investors tend to be more willing to “pay up” (via higher P/E ratios) for predictable earnings growth as overall profits moderate. Therefore, our position in equity portfolio structuring is to remain committed to the fastest earnings growth sectors of the economy — particularly health care and technology — in spite of periodic bouts of volatility associated with them. In addition, our belief in the sustainability of higher oil and gas prices has led us to maintain the overweight in both the energy minerals and industrial service sectors. Recently, we have become more conservative on the financial sector, largely based on industry consolidation activity and the prospect for more positive investor sentiment in a more benign interest rate environment.
Many markets outside the U.S. have also had meaningful corrections from the highs in early May. It is important to note, however, that this pullback follows a period of very strong performance. We have used recent market volatility to add to our emerging market exposure, boosting the allocation to Asia. We remain slightly overweighted in Japan, largely based on continued signs that the country has emerged from its long period of economic stagnation. While we maintain an underweight in Europe, it appears that several key economies, most notably Germany, appear
to be coming out of their doldrums. Euroland’s economic growth however, still trails that of other regions, and the lack of progress on both corporate and government reforms represent long-term challenges. Growth stocks continue to look attractive on a global basis, particularly due to highly attractive valuations for the traditional growth sectors, such as healthcare and technology. Similar to our domestic strategy, we believe the energy sector is highly attractive based on long-term supply/demand dynamics.
Our research team remains focused on identifying growth opportunities throughout the world. As always, we recommend that long-term investors maintain a fully diversified portfolio.
With best wishes,
Eugene C. Sit, CFA
Chairman and Chief Investment Officer
3
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| Sit Mutual Funds |
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| One Year Ended June 30, 2006 |
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SIT EQUITY FUNDS |
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| 3-Month |
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Balanced SIBAX |
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| -1.89 | % |
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S&P 500 Index |
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| -1.44 |
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Lehman Aggregate Bond Index |
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| -0.08 |
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Dividend Growth Class I SDVGX |
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| 0.27 |
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S&P 500 Index |
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| -1.44 |
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Dividend Growth Class S SDVSX |
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| 0.27 |
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S&P 500 Index |
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| -1.44 |
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Large Cap Growth SNIGX |
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| -2.24 |
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Russell 1000® Index(1) |
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| -3.90 |
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Mid Cap Growth(2) NBNGX |
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| -4.06 |
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Russell Mid Cap™ Growth Index(3) |
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| -4.69 |
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International Growth(4) SNGRX |
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| -1.46 |
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MSCI EAFE Growth Index(5) |
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| 0.26 |
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Small Cap Growth(2) SSMGX |
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| -5.08 |
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Russell 2000® Growth Index(6) |
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| -7.25 |
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Science & Technology Growth(7) SISTX |
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| -7.99 |
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ArcaEx Tech 100 Index |
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| -10.30 |
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Developing Markets Growth(4) SDMGX |
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| -3.12 |
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MSCI Emerging Markets Index(6) |
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| -5.11 |
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*3- and 6-month returns 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.
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(1) | Figures assume an inception date of 9/2/82. |
(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) | Russell Mid Cap Growth™ Index inception 12/31/85. |
(4) | International investing has special risks, such as currency exchange fluctuations, high volatility, illiquidity and the possibility of policital instability. |
(5) | Figures assume an inception date of 10/31/91. |
4
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| 6-Month |
| 1-Year |
| 3-Year |
| 5-Year |
| 10-Year |
| Since |
| Inception | |||||||
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| 0.25 | % |
| 6.03 | % |
| 8.57 | % |
| 1.94 | % |
| 6.19 | % |
| 7.36 | % |
| 12/31/93 |
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| 2.71 |
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| 8.63 |
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| 11.22 |
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| 2.49 |
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| 8.32 |
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| 10.31 |
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| -0.72 |
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| -0.81 |
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| 2.05 |
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| 4.97 |
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| 6.22 |
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| 6.02 |
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| 6.42 |
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| 13.20 |
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| — |
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| — |
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| — |
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| 10.78 |
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| 12/31/03 |
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| 2.71 |
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| 8.63 |
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| — |
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| — |
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| — |
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| 7.38 |
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| — |
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| — |
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| 3/31/06 |
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| — |
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| — |
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| — |
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| — |
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| 1.24 |
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| 9.91 |
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| 12.01 |
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| -0.41 |
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| 5.64 |
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| 10.94 |
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| 9/2/82 |
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| -0.93 |
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| 6.12 |
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| 8.35 |
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| -0.76 |
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| 5.42 |
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| 11.76 |
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| 1.96 |
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| 15.34 |
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| 17.30 |
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| 1.45 |
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| 6.32 |
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| 13.61 |
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| 9/2/82 |
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| 2.56 |
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| 13.04 |
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| 16.86 |
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| 4.76 |
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| 8.46 |
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| 7.50 |
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| 26.37 |
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| 18.73 |
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| 1.47 |
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| 1.83 |
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| 5.35 |
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| 11/1/91 |
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| 9.29 |
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| 25.98 |
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| 21.05 |
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| 8.11 |
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| 3.89 |
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| 4.65 |
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| 5.62 |
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| 20.62 |
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| 15.64 |
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| 2.94 |
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| 8.76 |
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| 13.40 |
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| 7/1/94 |
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| 6.07 |
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| 14.58 |
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| 16.27 |
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| 3.49 |
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| 4.12 |
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| 7.51 |
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| -5.11 |
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| 9.63 |
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| 7.57 |
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| -8.01 |
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| — |
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| 0.40 |
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| 12/31/97 |
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| -6.24 |
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| 5.19 |
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| 11.72 |
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| 1.56 |
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| — |
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| 12.39 |
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| 8.56 |
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| 34.47 |
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| 29.32 |
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| 13.88 |
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| 4.85 |
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| 4.87 |
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| 7/1/94 |
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| 5.81 |
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| 32.27 |
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| 30.98 |
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| 18.28 |
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| 4.08 |
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| 3.77 |
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(6) | Figures assume an inception date of 6/30/94. |
(7) | Since the Fund focuses its investments 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
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| Sit Mutual Funds |
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| 1996 |
| 1997 |
| 1998 |
| 1999 | ||||
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| Balanced |
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| 15.80 | % |
| 21.73 | % |
| 21.30 | % |
| 20.15 | % |
| S&P 500 Index |
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| 22.96 |
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| 33.36 |
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| 28.58 |
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| 21.04 |
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| Lehman Aggregate Bond Index |
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| 3.63 |
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| 9.65 |
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| 8.69 |
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| -0.82 |
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| Dividend Growth Class I(1) |
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| — |
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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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| — |
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| Large Cap Growth(2) |
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| 23.05 |
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| 31.70 |
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| 30.56 |
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| 33.41 |
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| Russell 1000® Growth Index |
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| 23.12 |
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| 30.48 |
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| 38.72 |
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| 33.16 |
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| Mid Cap Growth(3) |
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| 21.87 |
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| 17.70 |
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| 6.84 |
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| 70.65 |
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| Russell Mid Cap™ Growth Index |
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| 17.48 |
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| 22.54 |
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| 17.87 |
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| 51.29 |
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| International Growth(4) |
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| 10.31 |
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| 4.81 |
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| 18.95 |
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| 50.77 |
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| MSCI EAFE Growth Index |
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| 3.46 |
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| 2.11 |
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| 22.21 |
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| 29.46 |
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| Small Cap Growth(3) |
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| 14.97 |
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| 7.63 |
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| 1.97 |
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| 108.63 |
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| Russell 2000® Growth Index |
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| 11.26 |
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| 12.94 |
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| 1.24 |
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| 43.10 |
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| Science & Technology Growth(5) |
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| — |
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| — |
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| 38.40 |
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| 85.98 |
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| ArcaEx Tech 100 Index |
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| — |
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| — |
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| 54.60 |
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| 116.40 |
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| Developing Markets Growth(4) |
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| 17.27 |
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| -5.20 |
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| -24.93 |
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| 82.50 |
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| MSCI Emerging Markets Index |
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| 3.92 |
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| -13.40 |
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| -27.52 |
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| 63.70 |
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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 returns include reinvestment of all dividends and capital gains. For any returns less than one year, the returns are cumulative. | |
| (1) | These returns represent Class I. Class S of the Sit Dividend Growth Fund commenced operations on March 31, 2006; therefore, there is no annualized return information available for this Class. The annual returns shown for the Class I shares for this Fund would be substantially similar to the Class S because both classes of shares are invested in the same portfolio of securities. Annual returns will differ only to the extent that the classes do not have the same expenses. Specifically, the performance shown for the Class I shares does not reflect the 0.25% 12b-1 distribution fee that is charged to Class S shares. |
6
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| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| YTD 2006 | |||||||
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Balanced |
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| -4.80 | % |
| -12.99 | % |
| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| 0.25 | % |
S&P 500 Index |
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| -9.11 |
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| -11.88 |
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| -22.10 |
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| 28.68 |
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| 10.88 |
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| 4.91 |
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| 2.71 |
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Lehman Aggregate Bond Index |
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| 11.63 |
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| 8.44 |
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| 10.25 |
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| 4.10 |
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| 4.34 |
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| 2.43 |
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| -0.72 |
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Dividend Growth Class I(1) |
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| — |
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| — |
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| — |
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| — |
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| 10.91 |
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| 9.41 |
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| 6.42 |
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S&P 500 Index |
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| — |
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| — |
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| — |
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| — |
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| 10.88 |
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| 4.91 |
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| 2.71 |
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Large Cap Growth(2) |
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| -13.84 |
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| -27.70 |
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| -30.58 |
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| 26.34 |
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| 12.79 |
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| 9.59 |
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| 1.24 |
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Russell 1000® Growth Index |
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| -22.43 |
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| -20.42 |
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| -27.89 |
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| 29.76 |
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| 6.30 |
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| 5.27 |
|
| -0.93 |
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|
Mid Cap Growth(3) |
|
| -4.35 |
|
| -33.39 |
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| -34.64 |
|
| 38.51 |
|
| 17.02 |
|
| 15.27 |
|
| 1.96 |
|
Russell Mid Cap™ Growth Index |
|
| -11.75 |
|
| -20.15 |
|
| -27.41 |
|
| 42.71 |
|
| 15.48 |
|
| 12.10 |
|
| 2.56 |
|
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|
International Growth(4) |
|
| -26.66 |
|
| -33.26 |
|
| -29.84 |
|
| 28.70 |
|
| 12.97 |
|
| 14.67 |
|
| 7.50 |
|
MSCI EAFE Growth Index |
|
| -24..51 |
|
| -24.58 |
|
| -16.02 |
|
| 31.99 |
|
| 16.12 |
|
| 13.28 |
|
| 9.29 |
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|
Small Cap Growth(3) |
|
| 6.25 |
|
| -28.19 |
|
| -26.22 |
|
| 34.57 |
|
| 6.79 |
|
| 18.52 |
|
| 5.62 |
|
Russell 2000® Growth Index |
|
| -22.44 |
|
| -9.24 |
|
| -30.27 |
|
| 48.53 |
|
| 14.31 |
|
| 4.15 |
|
| 6.07 |
|
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|
Science & Technology Growth(5) |
|
| -6.55 |
|
| -47.78 |
|
| -44.45 |
|
| 40.09 |
|
| 7.39 |
|
| 3.83 |
|
| -5.11 |
|
ArcaEx Tech 100 Index |
|
| -16.22 |
|
| -15.59 |
|
| -33.33 |
|
| 52.14 |
|
| 11.73 |
|
| 7.36 |
|
| -6.24 |
|
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|
Developing Markets Growth(4) |
|
| -30.18 |
|
| -12.01 |
|
| -18.37 |
|
| 45.96 |
|
| 16.54 |
|
| 33.77 |
|
| 8.56 |
|
MSCI Emerging Markets Index |
|
| -31.80 |
|
| -4.91 |
|
| -7.97 |
|
| 51.59 |
|
| 22.45 |
|
| 30.31 |
|
| 5.81 |
|
|
|
(2) | Pursuant to a Plan of Reorganization on July 14, 2000, the Large Cap Growth Fund acquired all of the assets of Regional Growth Fund in exchange for shares of common stock of the Large Cap Growth Fund. |
(3) | Stocks of small- and mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. |
(4) | International investing has special risks, such as currency exchange fluctuations, high volitility, illiquidity and the possibility of political instability. |
(5) | 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. |
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. |
|
|
| A Fund’s “Return After Taxes on Distributions” shows the effect of taxable distributions (dividends and capital gain distributions), but assumes that you still hold the fund shares at the end of the period and so do not have any taxable gain or loss on your investment in the Fund. |
|
|
| A Fund’s “Return After Taxes on Distributions and Sale of Fund Shares” shows the effect of both taxable distributions and any taxable gain or loss that would be realized if the Fund shares were purchased at the beginning and sold at the end of the specified period. |
|
|
| The Funds’ past performance, before and after taxes, is not an indication of how the Funds will perform in the future. Your actual after-tax returns depend on your own tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future tax effects. After-tax returns are not relevant to investors who hold their Fund shares in a tax-deferred account (including a 401(k) or IRA account). 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 |
| 7.5 | % |
| -0.2 | % |
| 6.9 | % | |
|
| Return After Taxes on Distributions |
| 7.0 | % |
| -0.9 | % |
| 5.5 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 6.1 | % |
| -0.6 | % |
| 5.3 | % | |
|
| Lehman Aggregate Bond Index |
| 2.4 | % |
| 5.9 | % |
| 6.2 | % | |
|
| S&P 500 Index |
| 4.9 | % |
| 0.5 | % |
| 9.1 | % |
|
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| Sit Dividend Growth Fund |
| 1 Year |
| 5 Years |
| Since Inception* |
| ||||
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| |
|
| Return Before Taxes - Class I |
| 9.4 | % |
| n/a |
|
| 10.1 | % | |
|
| Return Before Taxes - Class S(1) |
| 9.4 | % |
| n/a |
|
| 10.1 | % | |
|
| Return After Taxes on Distributions(2) |
| 8.9 | % |
| n/a |
|
| 9.8 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 8.0 | % |
| n/a |
|
| 8.7 | % | |
S&P 500 Index | 4.9 | % | n/a | 7.8 | % |
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| Sit Large Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
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|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 9.6 | % |
| -4.8 | % |
| 6.7 | % |
|
|
| Return After Taxes on Distributions |
| 9.6 | % |
| -4.8 | % |
| 5.7 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 8.2 | % |
| -4.0 | % |
| 5.6 | % |
|
| Russell 1000® Growth Index |
| 5.3 | % |
| -3.6 | % |
| 6.7 | % |
|
8
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| Sit Mid Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
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|
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|
| Return Before Taxes |
| 15.3 | % |
| -4.1 | % |
| 7.4 | % |
|
|
| Return After Taxes on Distributions |
| 15.3 | % |
| -4.1 | % |
| 5.6 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 13.0 | % |
| -3.4 | % |
| 5.8 | % |
|
|
| Russell Mid Cap™ Growth Index |
| 12.1 | % |
| 1.4 | % |
| 9.3 | % |
|
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| Sit International Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 14.7 | % |
| -4.8 | % |
| 1.7 | % |
|
|
| Return After Taxes on Distributions |
| 14.6 | % |
| -4.9 | % |
| 1.2 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 12.5 | % |
| -4.1 | % |
| 1.3 | % |
|
|
| MSCI EAFE Growth Index |
| 13.3 | % |
| 1.9 | % |
| 3.3 | % |
|
|
|
|
|
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|
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|
| Sit Small Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 18.5 | % |
| -2.0 | % |
| 9.7 | % |
|
|
| Return After Taxes on Distributions |
| 18.5 | % |
| -2.0 | % |
| 9.0 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 15.7 | % |
| -1.7 | % |
| 8.3 | % |
|
|
| Russell 2000® Growth Index |
| 4.2 | % |
| 2.3 | % |
| 4.7 | % |
|
|
|
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| Sit Science and Technology Growth Fund |
| 1 Year |
| 5 Years |
| Since Inception* |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 3.8 | % |
| -14.6 | % |
| 1.1 | % |
|
|
| Return After Taxes on Distributions |
| 3.8 | % |
| -14.6 | % |
| 1.0 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 3.3 | % |
| -11.8 | % |
| 1.0 | % |
|
|
| ArcaEx Tech 100 Index |
| 7.4 | % |
| 0.5 | % |
| 14.1 | % |
|
|
|
|
|
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|
| Sit Developing Markets Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 33.8 | % |
| 10.3 | % |
| 5.7 | % |
|
|
| Return After Taxes on Distributions |
| 33.7 | % |
| 10.3 | % |
| 5.7 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 28.7 | % |
| 9.0 | % |
| 5.0 | % |
|
|
| MSCI Emerging Markets Index |
| 30.3 | % |
| 16.2 | % |
| 4.4 | % |
|
|
|
|
(1) |
| Class S of the Fund commenced operations on March 31, 2006 and therefore has no performance history. The returns shown are for another class of shares of the Fund, Class I shares, since both classes of shares will be invested in the same portfolio of securities. The returns shown above do not reflect the 0.25% 12b-1 distribution fee that will be charged to Class S shares. Had the 12b-1 fee been reflected, it would have reduced the returns shown. |
(2) |
| Returns shown are for Class I shares. |
9
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| |
| One Year Ended June 30, 2006 |
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|
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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 |
|
|
|
Net Asset Value 6/30/06: |
| $15.14 Per Share |
6/30/05: |
| $14.53 Per Share |
|
|
|
Total Net Assets: |
| $11.6 Million |
|
PORTFOLIO STRUCTURE |
10
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| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
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| |||||||
|
| Sit |
| S&P |
| Lehman |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| -1.89 | % |
|
| -1.44 | % |
|
| -0.08 | % | ||
6 Month** |
|
| 0.25 |
|
|
| 2.71 |
|
|
| -0.72 |
| ||
1 Year |
|
| 6.03 |
|
|
| 8.63 |
|
|
| -0.81 |
| ||
5 Year |
|
| 1.94 |
|
|
| 2.49 |
|
|
| 4.97 |
| ||
10 Year |
|
| 6.19 |
|
|
| 8.32 |
|
|
| 6.22 |
| ||
Inception |
|
| 7.36 |
|
|
| 10.31 |
|
|
| 6.02 |
| ||
(12/31/93) |
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| ||
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| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
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| ||
|
| Sit |
| S&P |
| Lehman | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| 6.03 | % |
|
| 8.63 | % |
|
| -0.81 | % | ||
5 Year |
|
| 10.10 |
|
|
| 13.10 |
|
|
| 27.46 |
| ||
10 Year |
|
| 82.24 |
|
|
| 122.34 |
|
|
| 82.80 |
| ||
Inception |
|
| 143.00 |
|
|
| 241.22 |
|
|
| 107.70 |
| ||
(12/31/93) |
|
|
|
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| ||
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|
| ||
*As of 6/30/06. | **Not annualized. | |||||||||||||
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. | |
| |
(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 6/30/96 and held until 6/30/06 would have grown to $18,224 in the Fund, $22,234 in the S&P 500 Index or $18,280 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | 1. | General Electric Co. |
| 2. | Valero Energy Corp. |
| 3. | Schlumberger, Ltd. |
| 4. | Microsoft Corp. |
| 5. | PepsiCo Inc. |
Bonds | 1. | FHLMC Pool #02149 |
| 2. | American Strategic, Inc. Portfolio II |
| 3. | Countrywide Home Loans 2005-24 A36, 5.50%, 11/25/35 |
| 4. | American Strategic Income III |
| 5. | Residential Asset Mtg. Products, Inc., 7.50%, 12/25/31 |
|
| Total Number of Holdings: 157 |
11
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
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|
|
|
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|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (65.3%) (2) |
|
|
| ||
|
|
|
| ||
Communications (1.6%) |
|
|
| ||
2,500 |
| Crown Castle Intl. Corp. (3) |
| 86,350 |
|
4,800 |
| Vodafone Group, A.D.R. |
| 102,240 |
|
|
|
|
|
| |
|
|
|
| 188,590 |
|
|
|
|
|
| |
Consumer Non-Durables (2.4%) |
|
|
| ||
2,600 |
| PepsiCo, Inc. |
| 156,104 |
|
2,100 |
| The Procter & Gamble Co. |
| 116,760 |
|
|
|
|
|
| |
|
|
|
| 272,864 |
|
|
|
|
|
| |
Consumer Services (3.8%) |
|
|
| ||
1,900 |
| Comcast Corp. (3) |
| 62,206 |
|
1,600 |
| Harrah’s Entertainment, Inc. |
| 113,888 |
|
3,400 |
| Marriott International, Inc. |
| 129,608 |
|
2,200 |
| News Corp. |
| 42,196 |
|
1,600 |
| Starbucks Corp. (3) |
| 60,416 |
|
2,000 |
| Time Warner, Inc. |
| 34,600 |
|
|
|
|
|
| |
|
|
|
| 442,914 |
|
|
|
|
|
| |
Electronic Technology (6.8%) |
|
|
| ||
2,000 |
| Analog Devices, Inc. |
| 64,280 |
|
7,400 |
| Cisco Systems, Inc. (3) |
| 144,522 |
|
2,700 |
| Dell Computer Corp. (3) |
| 65,907 |
|
9,100 |
| EMC Corp. (3) |
| 99,827 |
|
500 |
| Hewlett-Packard Co. |
| 15,840 |
|
4,500 |
| Intel Corp. |
| 85,275 |
|
2,500 |
| Motorola, Inc. |
| 50,375 |
|
5,100 |
| Nokia Corp., A.D.R. |
| 103,326 |
|
3,200 |
| Qualcomm, Inc. |
| 128,224 |
|
1,000 |
| Texas Instruments, Inc. |
| 30,290 |
|
|
|
|
|
| |
|
|
|
| 787,866 |
|
|
|
|
|
| |
Energy Minerals (6.3%) |
|
|
| ||
1,600 |
| Murphy Oil Corp. |
| 89,376 |
|
1,500 |
| Occidental Petroleum Corp. |
| 153,825 |
|
1,600 |
| Southwestern Energy Co. (3) |
| 49,856 |
|
1,600 |
| Suncor Energy, Inc. |
| 129,616 |
|
3,000 |
| Valero Energy Corp. |
| 199,560 |
|
2,433 |
| XTO Energy, Inc. |
| 107,709 |
|
|
|
|
|
| |
|
|
|
| 729,942 |
|
|
|
|
|
| |
Finance (8.7%) |
|
|
| ||
1,600 |
| American Express Co. |
| 85,152 |
|
2,021 |
| American International Group, Inc. |
| 119,340 |
|
3,166 |
| Citigroup, Inc. |
| 152,728 |
|
1,600 |
| Franklin Resources, Inc. |
| 138,896 |
|
800 |
| Goldman Sachs Group, Inc. |
| 120,344 |
|
3,000 |
| JPMorgan Chase & Co. |
| 126,000 |
|
1,800 |
| Nomura Holdings, Inc. |
| 33,840 |
|
1,000 |
| Prudential Financial, Inc. |
| 77,700 |
|
2,300 |
| Wells Fargo & Co. |
| 154,284 |
|
|
|
|
|
| |
|
|
|
| 1,008,284 |
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
Health Services (1.4%) |
|
| ||
2,100 |
| UnitedHealth Group, Inc. |
| 94,038 |
1,000 |
| WellPoint, Inc. (3) |
| 72,770 |
|
|
|
| |
|
|
|
| 166,808 |
|
|
|
| |
Health Technology (8.8%) |
|
| ||
1,600 |
| Abbott Laboratories |
| 69,776 |
1,900 |
| Amgen, Inc. (3) |
| 123,937 |
2,800 |
| Celgene Corp. (3) |
| 132,804 |
2,500 |
| Elan Corp., A.D.R. (3) |
| 41,750 |
1,900 |
| Eli Lilly and Co. |
| 105,013 |
1,500 |
| Genentech, Inc. (3) |
| 122,700 |
900 |
| Gilead Sciences, Inc. (3) |
| 53,244 |
1,100 |
| Johnson & Johnson |
| 65,912 |
1,700 |
| Medtronic, Inc. |
| 79,764 |
3,455 |
| Pfizer, Inc. |
| 81,089 |
2,500 |
| St. Jude Medical, Inc. (3) |
| 81,050 |
1,900 |
| Teva Pharmaceutical, Ltd., A.D.R. |
| 60,021 |
|
|
|
| |
|
|
|
| 1,017,060 |
|
|
|
| |
Industrial Services (3.6%) |
|
| ||
2,900 |
| Nabors Industries, Ltd. (3) |
| 97,991 |
1,700 |
| Noble Corp. |
| 126,514 |
3,000 |
| Schlumberger, Ltd. |
| 195,330 |
|
|
|
| |
|
|
|
| 419,835 |
|
|
|
| |
Non-Energy Minerals (0.8%) |
|
| ||
400 |
| Allegheny Technologies, Inc. |
| 27,696 |
600 |
| Freeport-McMoRan Copper & Gold, Inc. |
| 33,246 |
500 |
| Southern Copper Corp. |
| 44,565 |
|
|
|
| |
|
|
|
| 105,507 |
|
|
|
| |
Process Industries (1.5%) |
|
| ||
1,250 |
| Air Products and Chemicals, Inc. |
| 79,900 |
1,100 |
| Monsanto Co. |
| 92,609 |
|
|
|
| |
|
|
|
| 172,509 |
|
|
|
| |
Producer Manufacturing (7.4%) |
|
| ||
1,800 |
| Caterpillar, Inc. |
| 134,064 |
1,200 |
| Emerson Electric Co. |
| 100,572 |
1,200 |
| General Dynamics Corp. |
| 78,552 |
6,500 |
| General Electric Co. |
| 214,240 |
1,600 |
| ITT Industries, Inc. |
| 79,200 |
1,000 |
| 3M Co. |
| 80,770 |
900 |
| The Boeing Co. |
| 73,719 |
1,600 |
| United Technologies Corp. |
| 101,472 |
|
|
|
| |
|
|
|
| 862,589 |
|
|
|
| |
Retail Trade (3.6%) |
|
| ||
1,100 |
| Best Buy Co., Inc. |
| 60,324 |
3,000 |
| CVS Corp. |
| 92,100 |
1,200 |
| J.C. Penney Co., Inc. |
| 81,012 |
900 |
| Lowe’s Companies, Inc. |
| 54,603 |
2,700 |
| Target Corp. |
| 131,949 |
|
|
|
| |
|
|
|
| 419,988 |
|
|
|
|
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Technology Services (5.7%) |
|
|
| ||
1,300 |
| Adobe Systems, Inc. (3) |
| 39,468 |
|
1,400 |
| Automatic Data Processing, Inc. |
| 63,490 |
|
2,600 |
| First Data Corp. |
| 117,104 |
|
225 |
| Google, Inc. (3) |
| 94,349 |
|
7,300 |
| Microsoft Corp. |
| 170,090 |
|
2,100 |
| SAP AG |
| 110,292 |
|
1,900 |
| Yahoo!, Inc. (3) |
| 62,700 |
|
|
|
|
|
| |
|
|
|
| 657,493 |
|
|
|
|
|
| |
Transportation (2.1%) |
|
|
| ||
1,200 |
| Burlington Northern Sante Fe Corp. |
| 95,100 |
|
900 |
| United Parcel Service, Inc. |
| 74,097 |
|
2,800 |
| UTI Worldwide, Inc. |
| 70,644 |
|
|
|
|
|
| |
|
|
|
| 239,841 |
|
|
|
|
|
| |
Utilities (0.8%) |
|
|
| ||
2,800 |
| Equitable Resources, Inc. |
| 93,800 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 7,585,890 |
| ||
|
|
|
|
| |
(cost: $6,223,802) |
|
|
| ||
|
|
|
|
|
|
Bonds (30.3%) (2) |
|
|
| ||
|
|
|
|
|
|
Asset-Backed Securities (4.4%) |
|
|
| ||
|
| Green Tree Financial Corp.: |
|
|
|
4,381 |
| 1995-5 A6, 7.25%, 9/15/26 |
| 4,419 |
|
41,126 |
| 1997-1 A6, 7.29%, 3/15/28 |
| 41,892 |
|
42,778 |
| 1997-6 A10, 6.87%, 1/15/29 |
| 43,128 |
|
|
| Indymac Mfg. Housing, |
|
|
|
50,995 |
| 1998-2 A2, 6.17%, 12/25/11 |
| 48,649 |
|
50,000 |
| Merrill Lynch Mortgage Investors, Inc., |
|
|
|
|
| 2005-SD1 A2, 5.67%, 5/25/46 |
| 48,981 |
|
|
| Origen Mfg. Housing: |
|
|
|
50,000 |
| 2001-A A5, 7.08%, 3/15/32 |
| 50,711 |
|
30,132 |
| 2002-A A3, 6.17%, 5/15/32 |
| 29,669 |
|
99,490 |
| Residential Asset Mtg. Products, Inc., |
|
|
|
|
| 2004-SL3 A3, 7.50%, 12/25/31 |
| 102,500 |
|
75,000 |
| Residential Funding Mortgage Securities, |
|
|
|
|
| 2006-HSA1 A4, 5.49%, 2/25/36 |
| 73,090 |
|
68,286 |
| UCFC Mfg. Housing, |
|
|
|
|
| 1998-2 A3, 6.163%, 8/15/19 |
| 67,362 |
|
|
|
|
|
| |
|
|
|
| 510,401 |
|
|
|
|
|
| |
Collateralized Mortgage Obligations (6.3%) |
|
|
| ||
8,943 |
| Countrywide Alternative Loan Trust |
|
|
|
|
| 2005-53T2 2A1, 6.00%, 11/25/35 |
| 8,733 |
|
|
| Countrywide Home Loans: |
|
|
|
50,000 |
| 2004-21 A9 , 6.00%, 11/25/34 |
| 49,608 |
|
50,000 |
| 2005-J3 1A2, 5.50%, 9/25/35 |
| 46,554 |
|
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 |
| 112,862 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
|
| FHLMC: |
|
|
39,188 |
| 3.25%, 4/15/32 |
| 34,946 |
42,619 |
| 4.00%, 4/15/27 |
| 40,559 |
63,723 |
| FHR 3061 BD, 7.50% 11/15/35 |
| 65,711 |
|
| FNMA: |
|
|
50,000 |
| 5.00%, 12/25/31 |
| 46,488 |
100,000 |
| 5.5%, 4/25/35 |
| 96,010 |
39,089 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
| 6.00%, 5/25/35 |
| 38,279 |
60,296 |
| Master Asset Securitization Trust 2003-4 CA1, |
|
|
|
| 8.00%, 5/25/18 |
| 63,514 |
48,708 |
| Residential Funding Mtg. Securities I |
|
|
|
| 2005-S6 A2, 5.25%, 8/25/35 |
| 46,167 |
50,000 |
| Structured Asset Securities Corp. |
|
|
|
| 2005-4XS, 5.25%, 3/25/35 |
| 46,388 |
43,763 |
| Washington Mutual Mtg. Pass-Through |
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
| 42,327 |
|
|
|
| |
|
|
|
| 738,146 |
|
|
|
| |
Corporate Bonds (7.9%) |
|
| ||
100,000 |
| Academica Charter School, 8.00%, 8/15/24 |
| 97,110 |
73,009 |
| America West Airlines, 7.93%, 1/2/19 |
| 77,025 |
50,000 |
| Bard (C.R.), Inc., 6.70%, 12/1/26 |
| 51,856 |
50,000 |
| BB&T Capital Trust II, 6.75%, 6/07/36 |
| 49,811 |
50,000 |
| Citigroup Capital III, 7.625%, 12/01/36 |
| 54,587 |
50,000 |
| Commonwealth Edison, 5.90%, 3/15/36 |
| 47,652 |
75,000 |
| Continental Airlines, Inc., 6.563%, 2/15/12 |
| 76,334 |
50,000 |
| CSX Corp., 9.75%, 6/15/20 |
| 64,808 |
50,000 |
| Everest Reins. Hldgs., 8.75%, 3/15/10 |
| 54,416 |
100,000 |
| McDonald’s Corp., 7.31%, 9/15/27 |
| 101,313 |
50,000 |
| Midamerican Energy Hldgs, 8.48%, 9/15/28 |
| 60,536 |
50,000 |
| Narragansett Electric, 7.39%, 10/1/27 |
| 51,150 |
62,000 |
| SLMA Corp. CPI Floating Rate Note, 1/31/14 |
| 58,661 |
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 |
| 71,974 |
|
|
|
| |
|
|
|
| 917,233 |
|
|
|
| |
Federal Home Loan Mortgage Corporation (3.9%) |
|
| ||
45,776 |
| 5.342%, 12/1/35 |
| 45,364 |
26,478 |
| 7.50%, 7/1/29 |
| 27,395 |
56,933 |
| 7.50%, 3/1/31 |
| 58,924 |
185,207 |
| 8.00%, 7/1/32 |
| 195,680 |
43,131 |
| 8.38%, 5/17/20 |
| 45,779 |
25,233 |
| 8.50%, 7/1/18 |
| 26,680 |
45,621 |
| 8.50%, 10/1/30 |
| 48,862 |
|
|
|
| |
|
|
|
| 448,684 |
|
|
|
| |
Federal National Mortgage Association (4.3%) |
|
| ||
47,593 |
| 3.375%, 6/1/34 |
| 46,307 |
97,249 |
| 5.015%, 9/1/39 |
| 97,599 |
6,065 |
| 7.00%, 3/1/07 |
| 6,042 |
65,978 |
| 7.00%, 10/1/11 |
| 67,194 |
45,253 |
| 8.46%, 4/15/26 |
| 49,034 |
|
|
See accompanying notes to portfolios of investments on page 44. |
13
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
28,541 |
| 7.50%, 3/1/31 |
| 29,511 |
|
24,290 |
| 7.50%, 6/1/32 |
| 25,281 |
|
23,450 |
| 8.00%, 12/1/27 |
| 24,701 |
|
62,028 |
| 8.00%, 2/1/31 |
| 65,462 |
|
27,944 |
| 9.50%, 5/1/27 |
| 30,834 |
|
12,745 |
| 9.75%, 1/15/13 |
| 13,613 |
|
12,779 |
| 10.25%, 6/15/13 |
| 13,727 |
|
27,286 |
| 11.00%, 12/1/12 |
| 29,054 |
|
|
|
|
|
| |
|
|
|
| 498,359 |
|
|
|
|
|
| |
Government National Mortgage Association (1.7%) |
|
|
| ||
87,180 |
| 7.00%, 10/15/32 |
| 89,928 |
|
57,105 |
| 7.00%, 12/15/24 |
| 59,297 |
|
4,530 |
| 9.00%, 6/15/11 |
| 4,830 |
|
6,788 |
| 9.00%, 6/15/09 |
| 7,016 |
|
16,830 |
| 9.00%, 11/15/16 |
| 18,013 |
|
1,768 |
| 9.50%, 5/20/16 |
| 1,908 |
|
5,015 |
| 9.50%, 9/20/18 |
| 5,446 |
|
12,399 |
| 9.50%, 2/20/19 |
| 13,496 |
|
1,404 |
| 11.25%, 10/15/11 |
| 1,531 |
|
|
|
|
|
| |
|
|
|
| 201,465 |
|
|
|
|
|
| |
|
|
|
|
|
|
Taxable Municipal Securities (0.1%) |
|
|
| ||
8,000 |
| Bernalillo Multifamily, Series 1998A, |
| 8,363 |
|
|
|
|
|
| |
|
| 7.50%, 9/20/20 |
|
|
|
|
|
|
|
|
|
U.S. Government Securities (1.7%) |
|
|
| ||
62,345 |
| U.S. Treasury Inflation Index Note 3.625%, 1/15/08 |
| 63,417 |
|
|
| U.S. Treasury Strips, Zero Coupon: |
|
|
|
100,000 |
| 5.18% Effective Yield, 5/15/16 |
| 59,913 |
|
250,000 |
| 5.02% Effective Yield, 5/15/30 |
| 72,995 |
|
|
|
|
|
| |
|
|
|
| 196,325 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total bonds |
| 3,518,976 |
| ||
|
|
|
|
| |
(cost: $3,602,181) |
|
|
| ||
|
|
|
|
|
|
Closed-End Mutual Funds (3.2%) (2) |
|
|
| ||
6,009 |
| American Select Portfolio |
| 68,923 |
|
5,503 |
| American Strategic, Inc. Portfolio |
| 58,277 |
|
13,470 |
| American Strategic, Inc. Portfolio II |
| 138,337 |
|
10,609 |
| American Strategic, Inc. Portfolio III |
| 111,819 |
|
|
|
|
|
| |
Total closed-end mutual funds |
| 377,356 |
| ||
|
|
|
|
| |
(cost: $403,199) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (1.2%) (2) |
|
|
| ||
144,000 |
| Sit Money Market Fund, 4.81% (4) |
| 144,000 |
|
|
|
|
|
| |
(cost: $144,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
| $ 11,626,222 |
| ||
|
|
|
|
| |
(cost: $10,373,182) (5) |
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
15
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Roger J. Sit, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Dividend Growth Fund Class I posted a +13.20% return over the last twelve months, compared to the +8.63% return for the S&P 500 Index.
Stocks posted solid gains over the past year, although the markets have recently retreated as higher readings on inflation and fears of more aggressive interest rate increases by the Federal Reserve have shaken investor confidence. However, we believe that the U.S. economy is now decelerating from an unsustainable rate of growth, likely peaking in the first quarter of 2006 as GDP gained +5.6%. We project that growth over the final three quarters of the year will average approximately +3.0%, with a concurrent moderation in inflation statistics and relatively stable interest rates. The downside, of course, is that a slower economy will translate to moderating corporate growth. We believe that the Fund is well positioned in this environment, for two key reasons. First, we expect investors to gravitate toward high quality, stable growth companies that can deliver earnings gains regardless of economic conditions. Second, a somewhat less robust profit outlook, combined with the exceptional balance sheets for many U.S. companies, is likely to motivate corporate management teams to return capital to shareholders through dividend increases. To these points, the Fund’s statistical characteristics related to “stability” (e.g., earnings consistency, balance sheet strength) and “quality” (e.g., high return on capital, cash flow generation) are superior to the S&P 500 Index average. We believe these metrics currently carry particular importance in a more moderate growth economy.
The Fund’s strong twelve-month performance relative to the S&P 500 Index was driven by strong stock selection in the producer manufacturing, energy minerals, and finance sectors. Key winners in these sectors included Marathon Oil (+59% 12-month total return), Caterpillar (+59%), UBS (+41%), and Alliance Capital Management (+39%). Overweighting industrials and underweighting consumer durables also boosted relative returns. The Fund’s performance was hurt by holdings in the process industries sector, including Dow Chemical (-9%) and Sherwin Williams (-7%).
We are pleased to report strong one-year and since-inception returns for the Fund, and remain optimistic about its prospects over the near- and long-term.
|
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 |
|
|
|
|
|
|
| Class I |
| Class S |
|
|
|
|
|
Net Asset Value |
|
|
|
|
|
|
|
|
|
6/30/06: |
| $12.26 Per Share |
| $12.26 Per Share |
6/30/05: |
| $11.18 Per Share |
| n/a |
|
|
|
|
|
Total Net Assets |
| $24.1 Million |
| $0.05 Million |
|
|
|
|
|
Weighted Average Market Cap: $68.8 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
| Class |
| S&P 500 | Class |
| S&P 500 |
| ||||||||
3 Month** |
|
| 0.27 | % |
|
| -1.44 | % |
| 0.27% |
| -1.44 | % | |||
6 Month** |
|
| 6.42 |
|
|
| 2.71 |
|
| n/a |
| n/a |
| |||
1 Year |
|
| 13.20 |
|
|
| 8.63 |
|
| n/a |
| n/a |
| |||
3 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 10.78 |
|
|
| 7.38 |
|
| n/a |
| n/a |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Class |
| S&P 500 | Class |
| S&P 500 | |||||||||
1 Year |
|
| 13.20 | % |
|
| 8.63 | % |
| n/a |
| n/a |
| |||
3 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 29.14 |
|
|
| 19.47 |
|
| 0.27% |
| -1.44 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/06 |
| |||||||||||||||
|
| |||||||||||||||
**Not annualized. |
| |||||||||||||||
|
| |||||||||||||||
***Dividend Growth Fund Class I Inception was 12/31/03: Dividend Growth Fund Class S Inception was 3/31/06. | ||||||||||||||||
| ||||||||||||||||
|
|
|
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 6/30/06 would have grown to $12,914 in the Fund or $11,947 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | General Electric Co. |
| 2. | United Technologies Corp. |
| 3. | Citigroup, Inc. |
| 4. | Marathon Oil Corp. |
| 5. | Emerson Electric Co. |
| 6. | Total S.A. |
| 7. | Wells Fargo & Co. |
| 8. | Procter & Gamble Co. |
| 9. | Kayne Anderson MLP Invest. Co. |
| 10. | Alliance Capital Mgmt. Hldg., LP |
|
| Total Number of Holdings: 81 |
17
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (95.1%) (2) |
|
|
| ||
|
|
|
|
|
|
Commercial Services (2.7%) |
|
|
| ||
7,100 |
| McGraw-Hill Companies, Inc. |
| 356,633 |
|
7,200 |
| Pitney Bowes, Inc. |
| 297,360 |
|
|
|
|
|
| |
|
|
|
| 653,993 |
|
|
|
|
|
| |
Communications (2.5%) |
|
|
| ||
9,700 |
| AT&T, Inc. |
| 270,533 |
|
7,100 |
| Global Signal, Inc. |
| 328,872 |
|
|
|
|
|
| |
|
|
|
| 599,405 |
|
|
|
|
|
| |
Consumer Non-Durables (9.4%) |
|
|
| ||
3,000 |
| Colgate-Palmolive Co. |
| 179,700 |
|
4,300 |
| Diageo p.l.c. |
| 290,465 |
|
4,800 |
| General Mills, Inc. |
| 247,968 |
|
5,000 |
| Kimberly-Clark Corp. |
| 308,500 |
|
7,900 |
| PepsiCo, Inc. |
| 474,316 |
|
9,500 |
| Procter & Gamble Co. |
| 528,200 |
|
3,600 |
| VF Corp. |
| 244,512 |
|
|
|
|
|
| |
|
|
|
| 2,273,661 |
|
|
|
|
|
| |
Electronic Technology (3.6%) |
|
|
| ||
8,100 |
| Hewlett-Packard Co. |
| 256,608 |
|
11,100 |
| Motorola, Inc. |
| 223,665 |
|
9,000 |
| Nokia Corp., A.D.R. |
| 182,340 |
|
7,000 |
| Tektronix, Inc. |
| 205,940 |
|
|
|
|
|
| |
|
|
|
| 868,553 |
|
|
|
|
|
| |
Energy Minerals (9.3%) |
|
|
| ||
6,300 |
| BP p.l.c., A.D.R. |
| 438,543 |
|
8,800 |
| Hugoton Royalty Trust |
| 261,360 |
|
6,850 |
| Marathon Oil Corp. |
| 570,605 |
|
4,100 |
| Occidental Petroleum Corp. |
| 420,455 |
|
8,400 |
| Total S.A. |
| 550,368 |
|
|
|
|
|
| |
|
|
|
| 2,241,331 |
|
|
|
|
|
| |
Finance (19.8%) |
|
|
| ||
6,200 |
| ACE, Ltd. |
| 313,658 |
|
8,000 |
| Alliance Capital Mgmt. Hldg., LP |
| 489,120 |
|
3,300 |
| AMB Property Corp. |
| 166,815 |
|
6,800 |
| Aon Corp. |
| 236,776 |
|
7,800 |
| Aspen Insurance Holdings, Ltd. |
| 181,662 |
|
5,300 |
| Chubb Corp. |
| 264,470 |
|
12,200 |
| Citigroup, Inc. |
| 588,528 |
|
13,000 |
| Gladstone Investment Corp. |
| 195,000 |
|
3,000 |
| Franklin Resources, Inc. |
| 260,430 |
|
8,900 |
| IPC Holdings, Ltd. |
| 219,474 |
|
10,050 |
| J.P. Morgan Chase & Co. |
| 422,100 |
|
5,200 |
| Lincoln National Corp. |
| 293,488 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
1,300 |
| Prudential Financial, Inc. |
| 101,010 |
2,800 |
| UBS AG |
| 307,160 |
4,000 |
| Wachovia Corp. |
| 216,320 |
7,900 |
| Wells Fargo & Co. |
| 529,932 |
|
|
|
| |
|
|
|
| 4,785,943 |
|
|
|
| |
Health Services (0.7%) |
|
| ||
6,000 |
| Owens & Minor, Inc. |
| 171,600 |
|
|
|
| |
|
|
|
|
|
Health Technology (11.5%) |
|
| ||
7,000 |
| Abbott Laboratories |
| 305,270 |
6,000 |
| Becton, Dickinson & Co. |
| 366,780 |
3,200 |
| C.R. Bard, Inc. |
| 234,432 |
5,850 |
| Eli Lilly and Co. |
| 323,329 |
6,600 |
| GlaxoSmithKline p.l.c. |
| 368,280 |
6,300 |
| Johnson & Johnson, Inc. |
| 377,496 |
4,600 |
| Novartis AG, A.D.R. |
| 248,032 |
8,200 |
| PerkinElmer, Inc. |
| 171,380 |
8,700 |
| Wyeth |
| 386,367 |
|
|
|
| |
|
|
|
| 2,781,366 |
|
|
|
| |
Industrial Services (4.6%) |
|
| ||
5,900 |
| BJ Services Co. |
| 219,834 |
4,400 |
| Granite Construction, Inc. |
| 199,188 |
3,450 |
| Kinder Morgan, Inc. |
| 344,621 |
6,700 |
| Precision Drilling Trust |
| 222,440 |
3,400 |
| Tenaris S.A., A.D.R. |
| 137,666 |
|
|
|
| |
|
|
|
| 1,123,749 |
|
|
|
| |
Non-Energy Minerals (1.4%) |
|
| ||
3,500 |
| Freeport-McMoran Copper & Gold Corp. |
| 193,935 |
1,500 |
| Southern Peru Copper Corp. |
| 133,695 |
|
|
|
| |
|
|
|
| 327,630 |
|
|
|
| |
Process Industries (2.8%) |
|
| ||
4,300 |
| Air Products and Chemicals, Inc. |
| 274,856 |
6,200 |
| Dow Chemical Co. |
| 241,986 |
9,300 |
| RPM International, Inc. |
| 167,400 |
|
|
|
| |
|
|
|
| 684,242 |
|
|
|
| |
Producer Manufacturing (14.5%) |
|
| ||
4,400 |
| Autoliv, Inc. |
| 248,908 |
3,500 |
| Caterpillar, Inc. |
| 260,680 |
6,700 |
| Emerson Electric Co. |
| 561,527 |
6,600 |
| General Dynamics Corp. |
| 432,036 |
27,100 |
| General Electric Co. |
| 893,216 |
4,900 |
| ITT Industries, Inc. |
| 242,550 |
9,900 |
| United Technologies Corp. |
| 627,858 |
2,850 |
| 3M Co. |
| 230,195 |
|
|
|
| |
|
|
|
| 3,496,970 |
|
|
|
|
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
Retail Trade (2.7%) |
|
| ||
3,500 |
| Best Buy Co., Inc. |
| 191,940 |
6,900 |
| Claire’s Stores, Inc. |
| 176,019 |
3,300 |
| Costco Wholesale Corp. |
| 188,529 |
4,500 |
| Deb Shops, Inc. |
| 108,495 |
|
|
|
| |
|
|
|
| 664,983 |
|
|
|
| |
Technology Services (3.6%) |
|
| ||
9,000 |
| Accenture, Ltd. |
| 254,880 |
4,000 |
| Automatic Data Processing, Inc. |
| 181,400 |
9,700 |
| Microsoft Corp. |
| 226,010 |
10,022 |
| Syntel, Inc. |
| 205,050 |
|
|
|
| |
|
|
|
| 867,340 |
|
|
|
| |
Transportation (2.7%) |
|
| ||
3,100 |
| Burlington Northern Santa Fe Corp. |
| 245,675 |
4,400 |
| Tsakos Energy Navigation, Ltd. |
| 183,392 |
2,850 |
| United Parcel Service, Inc. |
| 234,640 |
|
|
|
| |
|
|
|
| 663,707 |
|
|
|
| |
Utilities (3.3%) |
|
| ||
7,700 |
| Equitable Resources, Inc. |
| 257,950 |
4,100 |
| Exelon Corp. |
| 233,003 |
5,300 |
| TXU Corp. |
| 316,887 |
|
|
|
| |
|
|
|
| 807,840 |
|
|
|
| |
|
|
|
|
|
Total common stocks |
| 23,012,313 | ||
|
|
|
| |
(cost: $20,655,224) |
|
| ||
|
|
|
|
|
Closed-End Mutual Funds (2.6%) (2) |
|
| ||
20,250 |
| Kayne Anderson MLP Invest. Co. |
| 519,413 |
3,900 |
| Tortoise Energy Infrastructure Corp. |
| 111,579 |
|
|
|
| |
|
|
|
|
|
Total closed-end mutual funds |
| 630,992 | ||
|
| |||
(cost: $623,185) |
|
| ||
|
|
|
|
|
Short-Term Securities (2.6%) (2) |
|
| ||
624,000 |
| Sit Money Market Fund, 4.81% (4) |
| 624,000 |
|
|
|
| |
(cost: $624,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
|
| ||
(cost: $21,902,409) (5) |
| $24,267,305 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
19
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, Roger J. Sit, Ronald D. Sit |
|
|
|
|
|
|
|
|
The Sit Large Cap Growth Fund’s one-year return was +9.91%, compared to the +6.12% for the Russell 1000® Growth Index and a +8.63% return for the S&P 500 Index.
Stocks were able to overcome numerous obstacles (e.g. higher interest rates, geopolitical tension, and higher oil prices) to post solid gains over the past twelve months. While we remain positive on the outlook for stocks, it is clear that the tailwinds helping equities -- particularly low interest rates and accelerating corporate earnings growth -- are now reversing. While this may limit the return potential for equities over the intermediate term, we believe that the prospects for improving relative performance for growth stocks are enhanced in this environment. Strong relative earnings increases from growth stocks stand out, as earnings for the broad market decelerate, which historically has led to the growth equity style outperforming the value equity style in similar periods. Our current sector allocations reflect this focus on high-quality growth companies that can deliver solid earnings, even as we transition into a period of somewhat slower economic growth. The most heavily weighted sectors within the Fund include electronic technology, health technology, finance, and energy minerals.
Relative to the S&P 500 Index, performance over the past year was aided by strong stock selection and an overweighted position in the energy minerals sector, along with good stock selection in retail trade and health technology. Valero Energy (+69% over the past twelve months), Suncor Energy (+72%), Schlumberger (+73%), and Celgene (+133%) were among the key winners over the period. The lagging sectors within the Fund over the period were process industries, health services, and electronic technology.
Changes to sector allocations were relatively modest over the past twelve months. Our belief in the sustainability of higher oil and gas prices led to increases in both the energy minerals and industrial service sectors. Positions were also increased in producer manufacturing and finance sectors. The relative underperformance of the electronic technology and technology service sectors was a key factor in lower sector allocations in these traditional growth groups. Consumer services and retail trade also declined, as we believe the imminent economic slowdown has clouded growth prospects in these areas.
|
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 6/30/06: |
| $37.60 Per Share |
6/30/05: |
| $34.27 Per Share |
| ||
Total Net Assets: |
| $101.9 Million |
| ||
Weighted Average Market Cap: |
| $67.9 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| -2.24 | % |
| -3.90 | % |
| -1.66 | % |
| |
6 Month** |
| 1.24 |
|
| -0.93 |
|
| 2.76 |
|
| |
1 Year |
| 9.91 |
|
| 6.12 |
|
| 9.08 |
|
| |
5 Year |
| -0.41 |
|
| -0.76 |
|
| 3.12 |
|
| |
10 Year |
| 5.64 |
|
| 5.42 |
|
| 8.56 |
|
| |
Inception*** |
| 10.94 |
|
| 11.76 |
|
| 13.35 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| 9.91 | % |
| 6.12 | % |
| 9.08 | % |
| |
5 Year |
| -2.03 |
|
| -3.75 |
|
| 16.61 |
|
| |
10 Year |
| 73.10 |
|
| 69.54 |
|
| 127.38 |
|
| |
Inception*** |
| 1087.28 |
|
| 1315.03 |
|
| 1882.82 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/06 | **Not annualized. |
| |||||||||
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. ***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 Rus-sell 1000 companies (the largest 1,000 U.S. companies by capitalization) with higher price-to-book ratios and higher forecasted growth values. |
(2) | An unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000® Index (the largest 3,000 U.S. companies based on total market capitalization). |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/96 and held until 6/30/06 would have grown to $17,310 in the Fund or $16,954 in the Russell 1000® Growth Index.
|
TOP 10 HOLDINGS |
|
|
1. | Valero Energy Corp. |
2. | General Electric Co. |
3. | Schlumberger, Ltd. |
4. | Citigroup, Inc. |
5. | PepsiCo, Inc. |
6. | Microsoft Corp. |
7. | Cisco Systems, Inc. |
8. | Crown Castle Intl Corp. |
9. | Marriott Intl, Inc. |
10. | Occidental Pete Corp. |
| |
| Total Number of Holdings: 87 |
21
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (93.5%) (2) |
|
|
| ||
|
|
|
| ||
49,400 |
| Crown Castle Intl. Corp. (3) |
| 1,706,276 |
|
40,600 |
| Vodafone Group, A.D.R. |
| 864,780 |
|
|
|
|
|
| |
|
|
|
| 2,571,056 |
|
|
|
|
|
| |
Consumer Non-Durables (3.1%) |
|
|
| ||
31,900 |
| PepsiCo, Inc. |
| 1,915,276 |
|
22,400 |
| Procter & Gamble Co. |
| 1,245,440 |
|
|
|
|
|
| |
|
|
|
| 3,160,716 |
|
|
|
|
|
| |
Consumer Services (5.1%) |
|
|
| ||
19,500 |
| Comcast Corp. (3) |
| 638,430 |
|
20,000 |
| Harrah’s Entertainment, Inc. |
| 1,423,600 |
|
43,600 |
| Marriott International, Inc. |
| 1,662,032 |
|
24,900 |
| News Corp. |
| 477,582 |
|
17,100 |
| Starbucks Corp. (3) |
| 645,696 |
|
19,400 |
| Time Warner, Inc. |
| 335,620 |
|
|
|
|
|
| |
|
|
|
| 5,182,960 |
|
|
|
|
|
| |
Electronic Technology (10.6%) |
|
|
| ||
36,800 |
| Analog Devices, Inc. |
| 1,182,752 |
|
18,200 |
| Applied Materials, Inc. |
| 296,296 |
|
90,000 |
| Cisco Systems, Inc. (3) |
| 1,757,700 |
|
27,000 |
| Dell Computer Corp. (3) |
| 659,070 |
|
132,600 |
| EMC Corp. (3) |
| 1,454,622 |
|
6,100 |
| Hewlett-Packard Co. |
| 193,248 |
|
51,100 |
| Intel Corp. |
| 968,345 |
|
19,900 |
| Juniper Networks, Inc. (3) |
| 318,201 |
|
38,900 |
| Motorola, Inc. |
| 783,835 |
|
58,400 |
| Nokia Corp., A.D.R. |
| 1,183,184 |
|
40,800 |
| Qualcomm, Inc. |
| 1,634,856 |
|
13,300 |
| Texas Instruments, Inc. |
| 402,857 |
|
|
|
|
|
| |
|
|
|
| 10,834,966 |
|
|
|
|
|
| |
Energy Minerals (11.0%) |
|
|
| ||
6,500 |
| ConocoPhillips Co. |
| 425,945 |
|
27,000 |
| CONSOL Energy, Inc. |
| 1,261,440 |
|
21,700 |
| Murphy Oil Corp. |
| 1,212,162 |
|
16,000 |
| Occidental Petroleum Corp. |
| 1,640,800 |
|
23,900 |
| Southwestern Energy Co. (3) |
| 744,724 |
|
19,500 |
| Suncor Energy, Inc. |
| 1,579,695 |
|
42,800 |
| Valero Energy Corp. |
| 2,847,056 |
|
34,066 |
| XTO Energy, Inc. |
| 1,508,102 |
|
|
|
|
|
| |
|
|
|
| 11,219,924 |
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) | ||
|
|
| ||
Finance (12.2%) |
|
| ||
19,100 |
| American Express Co. |
| 1,016,502 |
24,462 |
| American International Group, Inc. |
| 1,444,481 |
9,800 |
| Chubb Corp. |
| 489,020 |
41,100 |
| Citigroup, Inc. |
| 1,982,664 |
17,700 |
| Franklin Resources, Inc. |
| 1,536,537 |
36,800 |
| J.P. Morgan Chase & Co. |
| 1,545,600 |
22,500 |
| Nomura Holdings, Inc. |
| 423,000 |
12,900 |
| Prudential Financial, Inc. |
| 1,002,330 |
10,300 |
| The Goldman Sachs Group, Inc. |
| 1,549,429 |
22,100 |
| Wells Fargo Co. |
| 1,482,468 |
|
|
|
| |
|
|
|
| 12,472,031 |
|
|
|
| |
Health Services (2.2%) |
|
| ||
27,600 |
| UnitedHealth Group, Inc. |
| 1,235,928 |
13,000 |
| WellPoint, Inc. (3) |
| 946,010 |
|
|
|
| |
|
|
|
| 2,181,938 |
|
|
|
| |
Health Technology (11.7%) |
|
| ||
15,100 |
| Abbott Laboratories |
| 658,511 |
22,900 |
| Amgen, Inc. (3) |
| 1,493,767 |
29,800 |
| Celgene Corp. (3) |
| 1,413,414 |
24,050 |
| Elan Corp., A.D.R. (3) |
| 401,635 |
21,500 |
| Eli Lilly and Co. |
| 1,188,305 |
18,500 |
| Genentech, Inc. (3) |
| 1,513,300 |
9,400 |
| Gilead Sciences, Inc. (3) |
| 556,104 |
14,750 |
| Johnson & Johnson |
| 883,820 |
24,600 |
| Medtronic, Inc. |
| 1,154,232 |
42,225 |
| Pfizer, Inc. |
| 991,021 |
29,900 |
| St. Jude Medical, Inc. (3) |
| 969,358 |
22,200 |
| Teva Pharmaceutical, Ltd., A.D.R. |
| 701,298 |
|
|
|
| |
|
|
|
| 11,924,765 |
|
|
|
| |
Industrial Services (4.7%) |
|
| ||
32,600 |
| Nabors Industries, Ltd. (3) |
| 1,101,554 |
20,400 |
| Noble Corp. |
| 1,518,168 |
32,400 |
| Schlumberger, Ltd. |
| 2,109,564 |
|
|
|
| |
|
|
|
| 4,729,286 |
|
|
|
| |
Non-Energy Minerals (1.4%) |
|
| ||
8,400 |
| Allegheny Technologies, Inc. |
| 581,616 |
7,100 |
| Freeport-McMoRan Copper & Gold, Inc. |
| 393,411 |
4,800 |
| Southern Copper Corp. |
| 427,824 |
|
|
|
| |
|
|
|
| 1,402,851 |
|
|
|
| |
Process Industries (2.0%) |
|
| ||
15,100 |
| Air Products and Chemicals, Inc. |
| 965,192 |
12,100 |
| Monsanto Co. |
| 1,018,699 |
|
|
|
| |
|
|
|
| 1,983,891 |
|
|
|
|
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
|
Producer Manufacturing (10.5%) |
|
|
| |||
15,000 |
| Caterpillar, Inc. |
|
| 1,117,200 |
|
16,900 |
| Emerson Electronic Co. |
|
| 1,416,389 |
|
16,600 |
| General Dynamics Corp. |
|
| 1,086,636 |
|
75,800 |
| General Electric Co. |
|
| 2,498,368 |
|
22,800 |
| ITT Industries, Inc. |
|
| 1,128,600 |
|
12,600 |
| 3M Co. |
|
| 1,017,702 |
|
15,500 |
| The Boeing Co. |
|
| 1,269,605 |
|
18,300 |
| United Technologies Corp. |
|
| 1,160,586 |
|
|
|
|
|
| ||
|
|
|
|
| 10,695,086 |
|
|
|
|
|
| ||
Retail Trade (5.1%) |
|
|
| |||
14,675 |
| Best Buy Co., Inc. |
|
| 804,777 |
|
35,800 |
| CVS Corp. |
|
| 1,099,060 |
|
13,700 |
| J.C. Penney Co., Inc. |
|
| 924,887 |
|
12,000 |
| Lowe’s Companies, Inc. |
|
| 728,040 |
|
33,300 |
| Target Corp. |
|
| 1,627,371 |
|
|
|
|
|
| ||
|
|
|
|
| 5,184,135 |
|
|
|
|
|
| ||
Technology Services (7.3%) |
|
|
| |||
16,400 |
| Adobe Systems, Inc. |
|
| 497,904 |
|
15,000 |
| Automatic Data Processing, Inc. |
|
| 680,250 |
|
32,200 |
| First Data Corp. |
|
| 1,450,288 |
|
3,300 |
| Google, Inc. (3) |
|
| 1,383,789 |
|
76,900 |
| Microsoft Corp. |
|
| 1,791,770 |
|
18,100 |
| SAP AG |
|
| 950,612 |
|
21,200 |
| Yahoo!, Inc. (3) |
|
| 699,600 |
|
|
|
|
|
| ||
|
|
|
|
| 7,454,213 |
|
|
|
|
|
| ||
Transportation (2.9%) |
|
|
| |||
14,800 |
| Burlington Northern Sante Fe Corp. |
|
| 1,172,900 |
|
11,400 |
| United Parcel Service, Inc. |
|
| 938,562 |
|
34,100 |
| UTI Worldwide, Inc. |
|
| 860,343 |
|
|
|
|
|
| ||
|
|
|
|
| 2,971,805 |
|
|
|
|
|
| ||
Utilities (1.2%) |
|
|
| |||
38,000 |
| Equitable Research, Inc. |
|
| 1,273,000 |
|
|
|
|
|
| ||
|
|
|
|
|
| |
Total common stocks |
|
| 95,242,623 |
| ||
|
|
| ||||
(cost: $80,860,166) |
|
|
| |||
Short-Term Securities (6.4%) (2) |
|
|
| |||
6,556,000 |
| Sit Money Market Fund, 4.81% (4) |
|
| 6,556,000 |
|
|
|
|
|
| ||
(cost: $6,556,000) |
|
|
| |||
|
|
|
|
|
| |
Total investments in securities |
|
|
| |||
(cost: $87,416,166) (5) |
| $ | 101,798,623 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
23
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Matt T. Loucks, Robert W. Sit |
|
|
|
|
|
|
|
|
|
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 6/30/06: |
| $13.01 Per Share |
6/30/05: |
| $11.28 Per Share |
|
|
|
Total Net Assets: |
| $191.5 Million |
| ||
Weighted Average Market Cap: |
| $11.7 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Mid Cap |
| Russell Mid |
| Russell |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| -4.06 | % |
|
| -4.69 | % |
|
| -2.58 | % | ||
6 Month** |
|
| 1.96 |
|
|
| 2.56 |
|
|
| 4.84 |
| ||
1 Year |
|
| 15.34 |
|
|
| 13.04 |
|
|
| 13.66 |
| ||
5 Year |
|
| 1.45 |
|
|
| 4.76 |
|
|
| 9.92 |
| ||
10 Year |
|
| 6.32 |
|
|
| 8.46 |
|
|
| 12.06 |
| ||
Inception |
|
| 13.61 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Mid Cap |
| Russell Mid |
| Russell | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| 15.34 | % |
|
| 13.04 | % |
|
| 13.66 | % | ||
5 Year |
|
| 7.47 |
|
|
| 26.18 |
|
|
| 60.45 |
| ||
10 Year |
|
| 84.54 |
|
|
| 125.32 |
|
|
| 212.16 |
| ||
Inception |
|
| 1995.85 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 6/30/06 | **Not annualized. | |||||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. |
(2) | An unmanaged index that measures the performance of the 800 smallest companies in The Russell 1000® Index. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/96 and held until 6/30/06 would have grown to $18,454 in the Fund or $22,532 in the Russell Mid Cap™ Growth Index.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Celgene Corp. |
| 2. | XTO Energy, Inc. |
| 3. | Valero Energy, Inc. |
| 4. | Caremark Rx, Inc. |
| 5. | Cognizant Tech. Solutions Corp. |
| 6. | C H Robinson Worldwide, Inc. |
| 7. | Coach, Inc. |
| 8. | Marriott International, Inc. |
| 9. | TCF Financial Corp. |
| 10. | BJ Services Co. |
|
| Total Number of Holdings: 86 |
25
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (91.3%) (2) |
|
|
| ||
|
|
|
| ||
Commercial Services (0.6%) |
|
|
| ||
18,100 |
| Getty Images, Inc. (3) |
| 1,149,531 |
|
|
|
|
|
| |
Communications (2.3%) |
|
|
| ||
89,600 |
| American Tower Corp. (3) | 2,788,352 |
| |
30,100 |
| NII Holdings, Inc. (3) |
| 1,697,038 |
|
|
|
|
|
| |
|
|
|
| 4,485,390 |
|
|
|
|
|
| |
Consumer Durables (1.4%) |
|
|
| ||
72,700 |
| Scientific Games Corp. (3) | 2,589,574 |
| |
|
|
|
|
| |
Consumer Non-Durables (2.1%) |
|
|
| ||
114,800 |
| Coach, Inc. (3) |
| 3,432,520 |
|
3,000 |
| Hansen Natural Corp. (3) |
| 571,110 |
|
|
|
|
|
| |
|
|
|
| 4,003,630 |
|
|
|
|
|
| |
Consumer Services (3.9%) |
|
|
| ||
40,800 |
| Harrah’s Entertainment, Inc. | 2,904,144 |
| |
87,700 |
| Marriott International, Inc. | 3,343,124 |
| |
32,200 |
| Royal Caribbean Cruises, Ltd. | 1,231,650 |
| |
|
|
|
|
| |
|
|
|
| 7,478,918 |
|
|
|
|
|
| |
Electronic Technology (10.9%) |
|
|
| ||
91,150 |
| Analog Devices, Inc. |
| 2,929,561 |
|
36,200 |
| Apple Computer, Inc. (3) |
| 2,067,744 |
|
94,600 |
| ATI Technologies, Inc. (3) | 1,381,160 |
| |
97,175 |
| Broadcom Corp. (3) |
| 2,920,109 |
|
109,250 |
| Juniper Networks, Inc. (3) |
| 1,746,908 |
|
37,800 |
| KLA-Tencor Corp. |
| 1,571,346 |
|
35,500 |
| Lam Research Corp. (3) |
| 1,655,010 |
|
58,200 |
| Network Appliance, Inc. (3) | 2,054,460 |
| |
61,900 |
| Tellabs, Inc. (3) |
| 823,889 |
|
26,450 |
| Trimble Navigation, Ltd. (3) | 1,180,728 |
| |
112,783 |
| Xilinx, Inc. |
| 2,554,535 |
|
|
|
|
|
| |
|
|
|
| 20,885,450 |
|
|
|
|
|
| |
Energy Minerals (10.1%) |
|
|
| ||
39,100 |
| Apache Corp. |
| 2,668,575 |
|
42,300 |
| Murphy Oil Corp. |
| 2,362,878 |
|
76,400 |
| Southwestern Energy Corp. (3) |
| 2,380,624 |
|
29,400 |
| Tesoro Corp. |
| 2,186,184 |
|
69,572 |
| Valero Energy Corp. |
| 4,627,929 |
|
114,816 |
| XTO Energy, Inc. |
| 5,082,904 |
|
|
|
|
|
| |
|
|
|
| 19,309,094 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Finance (8.7%) |
|
|
| ||
44,450 |
| Ace, Ltd. |
| 2,248,726 |
|
10,800 |
| Affiliated Managers Group, Inc. (3) |
| 938,412 |
|
2,200 |
| Chicago Mercantile Exchange Hldgs., Inc. |
| 1,080,530 |
|
59,700 |
| HCC Insurance Holdings, Inc. |
| 1,757,568 |
|
45,150 |
| Hudson City Bancorp, Inc. |
| 601,850 |
|
15,600 |
| IntercontinentalExchange, Inc. (3) |
| 903,864 |
|
22,950 |
| Legg Mason, Inc. |
| 2,283,984 |
|
22,100 |
| Lehman Brothers Holdings, Inc. |
| 1,439,815 |
|
125,300 |
| TCF Financial Corp. |
| 3,314,185 |
|
54,500 |
| T. Rowe Price Group, Inc. |
| 2,060,645 |
|
|
|
|
|
| |
|
|
|
| 16,629,579 |
|
|
|
|
|
| |
Health Services (5.3%) |
|
|
| ||
79,550 |
| Caremark Rx, Inc. |
| 3,967,158 |
|
44,900 |
| Coventry Health Care, Inc. (3) |
| 2,466,806 |
|
30,200 |
| Laboratory Corp. (3) |
| 1,879,346 |
|
28,000 |
| Stericycle, Inc. (3) |
| 1,822,800 |
|
|
|
|
|
| |
|
|
|
| 10,136,110 |
|
|
|
|
|
| |
Health Technology (11.8%) |
|
| |||
22,700 |
| Alcon, Inc. |
| 2,237,085 |
|
7,400 |
| Allergan, Inc. |
| 793,724 |
|
151,500 |
| Celgene Corp. (3) |
| 7,185,645 |
|
115,750 |
| Elan Corp., A.D.R. (3) |
| 1,933,025 |
|
19,500 |
| Gilead Sciences, Inc. (3) |
| 1,153,620 |
|
11,200 |
| Intuitive Surgical, Inc. (3) |
| 1,321,264 |
|
39,500 |
| Kyphon, Inc. (3) |
| 1,515,220 |
|
49,500 |
| Teva Pharmaceutical Industries, A.D.R. |
| 1,563,705 |
|
62,050 |
| Thermo Electron Corp. (3) |
| 2,248,692 |
|
40,500 |
| Varian Medical Systems, Inc. (3) |
| 1,917,675 |
|
18,300 |
| Vertex Pharmaceuticals, Inc. (3) |
| 671,793 |
|
|
|
|
|
| |
|
|
|
| 22,541,448 |
|
|
|
|
|
| |
Industrial Services (6.2%) |
|
|
| ||
80,200 |
| BJ Services Co. |
| 2,988,252 |
|
26,800 |
| CARBO Ceramics, Inc. |
| 1,316,684 |
|
60,700 |
| Nabors Industries, Ltd. (3) |
| 2,051,053 |
|
36,200 |
| Noble Corp. |
| 2,694,004 |
|
65,100 |
| Smith International, Inc. |
| 2,894,997 |
|
|
|
|
|
| |
|
|
|
| 11,944,990 |
|
|
|
|
|
| |
Non-Energy Minerals (1.6%) |
|
|
| ||
20,200 |
| Allegheny Technologies, Inc. |
| 1,398,648 |
|
14,300 |
| RTI International Metals, Inc. (3) |
| 798,512 |
|
10,600 |
| Southern Copper Corp. |
| 944,778 |
|
|
|
|
|
| |
|
|
|
| 3,141,938 |
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
Producer Manufacturing (7.8%) |
|
| ||
50,500 |
| AMETEK, Inc. |
| 2,392,690 |
45,000 |
| Anixter International, Inc. (3) |
| 2,135,700 |
27,800 |
| IDEX Corp. |
| 1,312,160 |
53,500 |
| ITT Industries, Inc. |
| 2,648,250 |
16,600 |
| Jacobs Engineering Group, Inc. (3) |
| 1,322,024 |
46,400 |
| Precision Castparts Corp. |
| 2,772,864 |
34,000 |
| Rockwell Automation, Inc. |
| 2,448,340 |
|
|
|
| |
|
|
|
| 15,032,028 |
|
|
|
| |
Retail Trade (4.2%) |
|
| ||
26,375 |
| Best Buy Co., Inc. |
| 1,446,405 |
94,200 |
| Chico’s FAS, Inc. (3) |
| 2,541,516 |
28,800 |
| Nordstrom, Inc. |
| 1,051,200 |
74,275 |
| Staples, Inc. |
| 1,806,368 |
19,100 |
| Whole Foods Market, Inc. |
| 1,234,624 |
|
|
|
| |
|
|
|
| 8,080,113 |
|
|
|
| |
Technology Services (11.4%) |
|
| ||
80,590 |
| Adobe Systems, Inc. (3) |
| 2,446,712 |
50,450 |
| Akamai Technologies, Inc. (3) |
| 1,825,785 |
41,600 |
| Amdocs, Ltd. (3) |
| 1,522,560 |
47,100 |
| Autodesk, Inc. (3) |
| 1,623,066 |
52,800 |
| Business Objects, A.D.R. (3) |
| 1,436,160 |
82,600 |
| Ceridian Corp. (3) |
| 2,018,744 |
56,500 |
| Cognizant Tech. Solutions Corp. (3) |
| 3,806,405 |
47,800 |
| Cognos, Inc. (3) |
| 1,359,910 |
83,500 |
| McAfee, Inc. (3) |
| 2,026,545 |
35,250 |
| NAVTEQ (3) |
| 1,574,970 |
30,600 |
| Paychex, Inc. |
| 1,192,788 |
43,100 |
| Red Hat, Inc. (3) |
| 1,008,540 |
|
|
|
| |
|
|
|
| 21,842,185 |
|
|
|
| |
Transportation (3.0%) |
|
| ||
67,000 |
| C.H. Robinson Worldwide, Inc. |
| 3,571,100 |
83,400 |
| UTI Worldwide, Inc. |
| 2,104,182 |
|
|
|
| |
|
|
|
| 5,675,282 |
|
|
|
| |
|
| 174,925,260 | ||
|
|
|
| |
(cost: $122,958,778) |
|
| ||
|
|
|
|
|
Short-Term Securities (8.9%) (2) |
|
| ||
16,982,000 |
| Sit Money Market Fund, 4.81% (4) |
| 16,982,000 |
|
|
|
| |
(cost: $16,982,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
|
| ||
(cost: $139,940,778) (5) |
| $191,907,260 | ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
27
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Janet K. Kinzler, Tasha M. Murdoff |
|
|
|
|
|
|
|
|
The Sit International Growth Fund outperformed for the last fiscal year, returning +26.37% versus +25.98% for the MSCI EAFE Growth Index. The outperformance was the result of positive stock selection and country allocation. Stocks in the energy sector, along with European and Japanese consumer discretionary stocks, were clear outperformers. Emerging market software and telecommunication companies also contributed positively.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/06: |
| $15.48 Per Share |
6/30/05: |
| $12.31 Per Share |
|
|
|
Total Net Assets: |
| $34.7 Million |
|
|
|
Weighted Average Market Cap: |
| $59.8 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| -1.46 | % |
|
| 0.26 | % |
|
| 0.70 | % |
| ||
6 Month** |
|
| 7.50 |
|
|
| 9.29 |
|
|
| 10.16 |
|
| ||
1 Year |
|
| 26.37 |
|
|
| 25.98 |
|
|
| 26.56 |
|
| ||
5 Year |
|
| 1.47 |
|
|
| 8.11 |
|
|
| 10.02 |
|
| ||
10 Year |
|
| 1.83 |
|
|
| 3.89 |
|
|
| 6.39 |
|
| ||
Inception |
|
| 5.35 |
|
|
| 4.65 |
|
|
| 7.05 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| 26.37 | % |
|
| 25.98 | % |
|
| 26.56 | % |
| ||
5 Year |
|
| 7.58 |
|
|
| 47.72 |
|
|
| 61.18 |
|
| ||
10 Year |
|
| 19.94 |
|
|
| 46.53 |
|
|
| 85.86 |
|
| ||
Inception |
|
| 114.74 |
|
|
| 94.85 |
|
|
| 171.77 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 6/30/06. | **Not annualized. |
| |||||||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. |
|
|
(1) | An unmanaged index that measures the performance of over 1,100 international companies within the stock markets of Europe, Australasian and Far East. |
(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 6/30/96 and held until 6/30/06 would have grown to $11,994 in the Fund or $14,653 in the MSCI EAFE Growth Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
29
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
|
1. |
| BHP Billiton, Ltd. |
2. |
| Rio Tinto, A.D.R. |
3. |
| Mitsubishi UFJ Financial Group, Inc. |
4. |
| Sumitomo Financial Group |
5. |
| NII Holdings, Inc. |
6. |
| Novartis, A.G. |
7. |
| Roche Holdings, A.G. |
8. |
| Nestle, SA |
9. |
| SAP AG |
10. |
| Veolia Environment |
|
| Total Number of Holdings: 95 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (95.8%) (2) |
|
|
| ||
Africa/ Middle East (2.5%) |
|
|
| ||
Israel (2.5%) |
|
|
| ||
7,600 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 278,160 |
|
11,600 |
| Lipman Electronic, A.D.R. (Electronic Tech.) |
| 329,208 |
|
8,000 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) |
| 252,720 |
|
|
|
|
|
| |
|
|
|
| 860,088 |
|
|
|
|
|
| |
Asia (37.3%) |
|
|
| ||
Australia (7.4%) |
|
|
| ||
17,444 |
| Australia and New Zealand Banking Group (Finance) |
| 344,606 |
|
55,386 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 1,193,319 |
|
4,900 |
| Rio Tinto, p.l.c., A.D.R. (Non-Energy Minerals) |
| 1,027,579 |
|
|
|
|
|
| |
|
|
|
| 2,565,504 |
|
|
|
|
|
| |
Hong Kong / China (3.6%) |
|
|
| ||
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 240,828 |
|
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 325,925 |
|
334,000 |
| Petrochina Co., Ltd. (Energy Minerals) |
| 356,920 |
|
31,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 322,225 |
|
|
|
|
|
| |
|
|
|
| 1,245,898 |
|
|
|
|
|
| |
India * (0.4%) |
|
|
| ||
6,500 |
| ICICI Bank, A.D.R. (Finance) |
| 153,725 |
|
|
|
|
|
| |
Japan (24.8%) |
|
|
| ||
6,800 |
| AFLAC, Inc., A.D.R. (Finance) |
| 315,180 |
|
30,000 |
| Asahi Breweries (Consumer Non-Durables) |
| 421,729 |
|
10,500 |
| Canon, Inc. (Electronic Tech.) |
| 515,287 |
|
57 |
| DENTSU, Inc. (Consumer Svcs.) |
| 157,565 |
|
65 |
| East Japan Railway (Transportation) |
| 483,314 |
|
5,900 |
| FANUC LTD. (Producer Mfg.) |
| 530,569 |
|
11,200 |
| Honda Motor Co., Ltd. (Producer Mfg.) |
| 355,649 |
|
14,200 |
| Ito En, Ltd. (Consumer Non Durables) |
| 520,474 |
|
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 288,195 |
|
14 |
| Millea Holdings, Inc. (Finance) |
| 260,858 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
8,400 |
| Matsumotokiyoshi Co., Ltd. (Retail Trade) |
| 213,830 |
|
63 |
| Mitsubishi UFJ Financial Group, Inc. (Finance) |
| 881,494 |
|
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 108,892 |
|
6,500 |
| Nikko Cordial Corp. (Finance) |
| 83,244 |
|
66,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 482,666 |
|
4,000 |
| NITTO DENKO Corp. (Producer Mfg.) |
| 285,177 |
|
20,000 |
| Nomura Holdings, Inc. (Finance) |
| 375,279 |
|
6,000 |
| Seven & I Holdings Co., Ltd. (Retail Trade) |
| 197,874 |
|
57,000 |
| SHIMIZU Corp. (Producer Mfg.) |
| 319,617 |
|
77 |
| Sumitomo Mitsui Financial Group, Inc. (Finance) |
| 815,029 |
|
7,500 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 467,130 |
|
5,200 |
| Yamada Denki Co. (Retail Trade) |
| 530,849 |
|
|
|
|
|
| |
|
|
|
| 8,609,901 |
|
|
|
|
|
| |
South Korea (0.7%) |
|
|
| ||
750 |
| Samsung Electronics Co., G.D.R. (Electronic Tech.) |
| 238,352 |
|
|
|
|
|
| |
Thailand (0.4%) |
|
|
| ||
62,000 |
| Advanced Info Services (Communications) |
| 146,245 |
|
|
|
|
|
| |
Europe (48.3%) |
|
|
| ||
Austria (0.5%) |
|
|
| ||
2,000 |
| Raiffeisen Intl. Bank Holding A.G. (Finance) |
| 173,642 |
|
|
|
|
|
| |
Czech Republic (1.2%) |
|
|
| ||
6,600 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 417,054 |
|
|
|
|
|
| |
Denmark (1.0%) |
|
|
| ||
13,000 |
| Vestas Wind Systems A/S (Process Industries) (3) |
| 355,432 |
|
|
|
|
|
| |
Finland (0.9%) |
|
|
| ||
15,050 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 304,913 |
|
|
|
|
|
| |
France (8.1%) |
|
|
| ||
12,136 |
| AXA (Finance) |
| 398,187 |
|
12,136 |
| AXA Rights (Finance) |
| 10,242 |
|
8,000 |
| Business Objects, A.D.R. (Tech. Svcs.) (3) |
| 217,600 |
|
2,392 |
| Danone (Consumer Non-Durables) |
| 303,867 |
|
5,277 |
| Sanofi-Aventis (Health Tech.) |
| 514,832 |
|
5,800 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 377,638 |
|
6,884 |
| Total, S.A. (Energy Minerals) |
| 452,877 |
|
10,558 |
| Veolia Environment (Utilities) |
| 545,538 |
|
|
|
|
|
| |
|
|
|
| 2,820,781 |
|
|
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
2,500 |
| Allianz AG (Finance) |
| 394,626 |
|
1,175 |
| Fresenius AG (Health Tech.) |
| 195,691 |
|
2,487 |
| Muenchener Rueckver (Finance) |
| 339,881 |
|
937 |
| Puma AG (Consumer Durables) |
| 364,139 |
|
2,723 |
| SAP AG (Tech. Services) |
| 574,146 |
|
3,896 |
| Siemens AG (Producer Mfg.) |
| 338,902 |
|
|
|
|
|
| |
|
|
|
| 2,207,385 |
|
|
|
|
|
| |
Greece (0.7%) |
|
|
| ||
6,013 |
| National Bank of Greece S.A. (Finance) |
| 237,423 |
|
|
|
|
|
| |
Ireland (1.5%) |
|
| |||
21,920 |
| Anglo Irish Bank Corp. (Finance) (3) |
| 340,542 |
|
11,500 |
| Elan Corp., A.D.R. (Health Tech.) (3) |
| 192,050 |
|
|
|
|
|
| |
|
|
|
| 532,592 |
|
|
|
|
|
| |
Italy (2.0%) |
|
|
| ||
31,100 |
| Azimut Holdings SpA (Finance) (3) |
| 324,095 |
|
28,500 |
| Banco Popolare di Milano Scarl (Finance) |
| 363,142 |
|
|
|
|
|
| |
|
|
|
| 687,237 |
|
|
|
|
|
| |
Netherlands (2.1%) |
|
|
| ||
10,309 |
| ING Groep N.V. (Finance) |
| 405,073 |
|
10,910 |
| Philips Electronics N.V. (Consumer Durables) |
| 340,802 |
|
|
|
|
|
| |
|
|
|
| 745,875 |
|
|
|
|
|
| |
Spain (1.5%) |
|
|
| ||
31,343 |
| Telefonica, S.A. (Communications) |
| 521,802 |
|
|
|
|
|
| |
Sweden (1.3%) |
|
|
| ||
13,500 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 446,040 |
|
|
|
|
|
| |
Switzerland (11.3%) |
|
|
| ||
7,614 |
| Credit Suisse Group (Finance) |
| 425,141 |
|
5,755 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 418,118 |
|
2,000 |
| Logitech Internat Depository Receipt (Electronic Tech.) (3) |
| 77,560 |
|
1,982 |
| Nestle, S.A. (Consumer Non-Durables) |
| 621,296 |
|
12,586 |
| Novartis, A.G. (Health Tech.) |
| 680,158 |
|
2,146 |
| Panalpina Welttransport Holding (Transportation) (3) |
| 199,184 |
|
3,767 |
| Roche Holdings, A.G. (Health Tech.) |
| 621,478 |
|
3,076 |
| Synthes, Inc. (Health Tech.) (3) |
| 370,375 |
|
4,641 |
| UBS, A.G. (Finance) |
| 507,669 |
|
|
|
|
|
| |
|
|
|
| 3,920,979 |
|
|
|
|
|
| |
United Kingdom (9.8%) |
|
|
| ||
24,800 |
| BAE Systems p.l.c. (Producer Manufacturing) |
| 169,601 |
|
15,266 |
| Barclays, p.l.c. (Finance) |
| 173,506 |
|
5,100 |
| BP p.l.c., A.D.R. (Energy Minerals) |
| 355,011 |
|
21,018 |
| Burberry Group, p.l.c. (Retail Trade) |
| 167,158 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
4,829 |
| Cairn Energy, p.l.c. (Energy Minerals) (3) |
| 195,868 |
|
9,500 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 530,100 |
|
14,289 |
| Ladbrokes p.l.c. (Consumer Svcs.) |
| 107,697 |
|
9,835 |
| Reckitt Benckiser, p.l.c. (Consumer Non-Durables) |
| 367,446 |
|
9,427 |
| Royal Bank of Scotland (Finance) |
| 310,008 |
|
60,712 |
| Tesco, p.l.c. (Retail Trade) |
| 375,050 |
|
210,696 |
| Vodafone Group, p.l.c. (Communications) |
| 449,123 |
|
15,354 |
| WPP Group p.l.c. (Consumer Svcs.) |
| 185,866 |
|
|
|
|
|
| |
|
|
|
| 3,386,434 |
|
|
|
|
|
| |
Latin America (4.1%) |
|
|
| ||
Argentina (0.8%) |
|
|
| ||
6,750 |
| Tenaris S.A., A.D.R. (Industrial Services) |
| 273,308 |
|
|
|
|
|
| |
Brazil (0.6%) |
|
|
| ||
9,000 |
| AES Tiete S.A. (Utilities) |
| 216,241 |
|
|
|
|
|
| |
Mexico (2.7%) |
|
|
| ||
12,100 |
| NII Holdings, Inc. (Communications) (3) |
| 682,198 |
|
88,260 |
| Wal-Mart de Mexico (Retail Trade) |
| 247,867 |
|
|
|
|
|
| |
|
|
|
| 930,065 |
|
|
|
|
|
| |
North America (3.6%) |
|
|
| ||
Canada (3.0%) |
|
|
| ||
2,600 |
| Precision Drilling Trust (Industrial Svcs.) |
| 86,320 |
|
7,000 |
| Shoppers Drug Mart Corp. (Retail Trade) |
| 254,923 |
|
2,700 |
| Suncor Energy, Inc. (Energy Minerals) |
| 218,727 |
|
9,600 |
| Talisman Energy, Inc. (Energy Minerals) |
| 167,808 |
|
16,400 |
| Trican Well Service, Ltd. (Energy Minerals) |
| 328,855 |
|
|
|
|
|
| |
|
|
|
| 1,056,633 |
|
|
|
|
|
| |
United States (0.6%) |
|
|
| ||
10,200 |
| News Corp., Ltd., A.D.R. (Consumer Svcs.) |
| 195,636 |
|
|
|
|
|
| |
Total common stocks |
| 33,249,185 |
| ||
|
|
|
|
| |
Closed-End Mutual Fund (1.5%) (2) |
|
|
| ||
11,500 |
| India Fund* (Consumer Svcs.) |
| 531,185 |
|
|
|
|
|
| |
(cost: $206,645) |
|
|
| ||
|
|
|
| ||
923,000 |
| Sit Money Market Fund, 4.81% (4) |
| 923,000 |
|
|
|
|
|
| |
(cost: $923,000) |
|
|
| ||
|
| $ 34,703,370 |
| ||
|
|
|
|
|
* | The fund’s total investments in India including the India Fund comprises 1.9% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
31
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Robert W. Sit, Matt T. Loucks, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Small Cap Growth Fund returned +20.62% over the past twelve months. This compares to a +14.58% return for both the Russell 2000® Growth Index and the Russell 2000® Index.
|
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 6/30/06: |
| $33.46 Per Share |
6/30/05: |
| $27.74 Per Share |
|
|
|
Total Net Assets: |
| $107.0 Million |
|
|
|
|
PORTFOLIO STRUCTURE - BY SECTOR |
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
| Sit Small Cap |
|
| Russell 2000® |
|
| Russell 2000® |
| ||||
3 Month** |
|
| -5.08 | % |
|
| -7.25 | % |
|
| -5.02 | % |
| ||
6 Month** |
|
| 5.62 |
|
|
| 6.07 |
|
|
| 8.21 |
|
| ||
1 Year |
|
| 20.62 |
|
|
| 14.58 |
|
|
| 14.58 |
|
| ||
5 Year |
|
| 2.94 |
|
|
| 3.49 |
|
|
| 8.50 |
|
| ||
10 Year |
|
| 8.76 |
|
|
| 4.12 |
|
|
| 9.05 |
|
| ||
Inception |
|
| 13.40 |
|
|
| 7.51 |
|
|
| 11.07 |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
| |||||||||||||||
|
|
|
| Sit |
|
| Russell 2000® |
|
| Russell 2000® |
| ||||
1 Year |
|
| 20.62 | % |
|
| 14.58 | % |
|
| 14.58 | % |
| ||
5 Year |
|
| 15.60 |
|
|
| 18.70 |
|
|
| 50.36 |
|
| ||
10 Year |
|
| 131.59 |
|
|
| 49.81 |
|
|
| 137.81 |
|
| ||
Inception |
|
| 352.59 |
|
|
| 138.52 |
|
|
| 252.65 |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 6/30/06. |
| **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. |
(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 6/30/96 and held until 6/30/06 would have grown to $23,159 in the Fund or $14,981 in the Russell 2000® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
1. | Frontier Oil Corp. |
2. | Affiliated Managers Group, Inc. |
3. | Celgene Corp. |
4. | Amylin Pharmaceuticals Inc. |
5. | Equitable Resources, Inc. |
6. | Citrix |
7. | Aztar Corp. |
8. | Mc Dermott Intl Inc. |
9. | URS Corp. |
10. | NII Holdings Inc. |
|
|
| Total Number of Holdings: 96 |
33
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
|
Common Stocks (93.7%) (2) |
|
|
|
| ||
| ||||||
Commercial Services (1.0%) |
|
|
|
| ||
15,900 |
| Getty Images, Inc. (3) |
|
| 1,009,809 |
|
|
|
|
|
| ||
Communications (3.1%) |
|
|
|
| ||
29,100 |
| NII Holdings, Inc. (3) |
|
| 1,640,658 |
|
62,650 |
| SBA Communications Corp. (3) |
|
| 1,637,671 |
|
|
|
|
|
| ||
|
|
|
|
| 3,278,329 |
|
|
|
|
|
| ||
Consumer Durables (1.4%) |
|
|
|
| ||
41,000 |
| Scientific Games Corp. (3) |
|
| 1,460,420 |
|
|
|
|
|
| ||
Consumer Non-Durables (3.3%) |
|
|
|
| ||
17,600 |
| Carter’s, Inc. (3) |
|
| 465,168 |
|
46,800 |
| Coach, Inc. (3) |
|
| 1,399,320 |
|
8,500 |
| Hansen Natural Corp. (3) |
|
| 1,618,145 |
|
|
|
|
|
| ||
|
|
|
|
| 3,482,633 |
|
|
|
|
|
| ||
Consumer Services (3.3%) |
|
|
|
| ||
33,300 |
| Aztar Corp. (3) |
|
| 1,730,268 |
|
20,700 |
| Life Time Fitness, Inc. (3) |
|
| 957,789 |
|
13,000 |
| Panera Bread Co. (3) |
|
| 874,120 |
|
|
|
|
|
| ||
|
|
|
|
| 3,562,177 |
|
|
|
|
|
| ||
Electronic Technology (11.2%) |
|
|
|
| ||
80,700 |
| Agere Systems, Inc. (3) |
|
| 1,182,255 |
|
103,650 |
| Arris Group, Inc. (3) |
|
| 1,359,888 |
|
26,200 |
| Cognex Corp. |
|
| 681,986 |
|
20,800 |
| CommScope, Inc. (3) |
|
| 653,536 |
|
30,050 |
| Fairchild Semiconductor International, Inc. (3) |
|
| 546,009 |
|
45,560 |
| Intersil Corp. |
|
| 1,059,270 |
|
41,000 |
| Microsemi Corp. (3) |
|
| 999,580 |
|
18,600 |
| MICROS Systems, Inc. (3) |
|
| 812,448 |
|
15,014 |
| Rackable Systems, Inc. (3) |
|
| 592,903 |
|
29,400 |
| Radyne Corp. (3) |
|
| 334,572 |
|
27,700 |
| Silicon Laboratories, Inc. (3) |
|
| 973,655 |
|
104,950 |
| Sonus Networks, Inc. (3) |
|
| 519,503 |
|
22,100 |
| Trimble Navigation, Ltd. (3) |
|
| 986,544 |
|
31,600 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
|
| 1,030,476 |
|
10,000 |
| Xyratex, Ltd. (3) |
|
| 264,500 |
|
|
|
|
|
| ||
|
|
|
|
| 11,997,125 |
|
|
|
|
|
| ||
Energy Minerals (9.0%) |
|
|
|
| ||
26,150 |
| Arena Resources, Inc. (3) |
|
| 896,683 |
|
15,800 |
| ATP Oil & Gas Corp. (3) |
|
| 662,494 |
|
20,450 |
| Carrizo Oil & Gas, Inc. (3) |
|
| 640,289 |
|
26,700 |
| Foundation Coal Holdings, Inc. |
|
| 1,253,031 |
|
89,200 |
| Frontier Oil Corp. |
|
| 2,890,080 |
|
261,775 |
| Gasco Energy, Inc. (3) |
|
| 1,164,899 |
|
15,200 |
| Quicksilver Resources, Inc. (3) |
|
| 559,512 |
|
51,600 |
| Southwestern Energy Co. (3) |
|
| 1,607,856 |
|
|
|
|
|
| ||
|
|
|
|
| 9,674,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
|
Finance (7.4%) |
|
|
|
| ||
32,075 |
| Affiliated Managers Group, Inc. (3) |
|
| 2,786,997 |
|
15,600 |
| Boston Private Financial Holdings, Inc. |
|
| 435,240 |
|
21,200 |
| National Financial Partners Corp. |
|
| 939,372 |
|
40,936 |
| New York Community Bancorp, Inc. |
|
| 675,854 |
|
24,500 |
| The Navigators Group, Inc. (3) |
|
| 1,073,590 |
|
50,340 |
| UCBH Holdings, Inc. |
|
| 832,624 |
|
22,350 |
| Wintrust Financial Corp. |
|
| 1,136,497 |
|
|
|
|
|
| ||
|
|
|
|
| 7,880,174 |
|
|
|
|
|
| ||
Health Services (4.3%) |
|
|
|
| ||
20,500 |
| Covance, Inc. (3) |
|
| 1,255,010 |
|
8,700 |
| Coventry Health Care, Inc. (3) |
|
| 477,978 |
|
36,000 |
| Psychiatric Solutions, Inc. (3) |
|
| 1,031,760 |
|
12,650 |
| Stericycle, Inc. (3) |
|
| 823,515 |
|
13,600 |
| United Surgical Partners International, Inc. (3) |
|
| 408,952 |
|
19,400 |
| VCA Antech, Inc. (3) |
|
| 619,442 |
|
|
|
|
|
| ||
|
|
|
|
| 4,616,657 |
|
|
|
|
|
| ||
Health Technology (12.7%) |
|
|
|
| ||
42,700 |
| Amylin Pharmaceuticals, Inc. (3) |
|
| 2,108,099 |
|
54,900 |
| Celgene Corp. (3) |
|
| 2,603,907 |
|
10,400 |
| Conor Medsystems, Inc. (3) |
|
| 286,936 |
|
91,050 |
| CryoLife, Inc. (3) |
|
| 491,670 |
|
57,500 |
| CV Therapeutics, Inc. (3) |
|
| 803,275 |
|
57,900 |
| ev3, Inc. (3) |
|
| 857,499 |
|
7,600 |
| Intuitive Surgical, Inc. (3) |
|
| 896,572 |
|
39,000 |
| Kyphon, Inc. (3) |
|
| 1,496,040 |
|
70,400 |
| NuVasive, Inc. (3) |
|
| 1,283,392 |
|
17,400 |
| Palomar Medical Technologies, Inc. (3) |
|
| 793,962 |
|
18,500 |
| ResMed, Inc. (3) |
|
| 868,575 |
|
30,296 |
| SurModics, Inc. (3) |
|
| 1,093,989 |
|
|
|
|
|
| ||
|
|
|
|
| 13,583,916 |
|
|
|
|
|
| ||
Industrial Services (10.7%) |
|
|
|
| ||
17,000 |
| CARBO Ceramics, Inc. |
|
| 835,210 |
|
32,900 |
| Chicago Bridge & Iron Co. |
|
| 794,535 |
|
19,700 |
| Core Laboratories N.V. (3) |
|
| 1,202,488 |
|
28,900 |
| Flotek Industries, Inc. (3) |
|
| 449,395 |
|
19,000 |
| Granite Construction, Inc. |
|
| 860,130 |
|
15,471 |
| Hydril (3) |
|
| 1,214,783 |
|
4,600 |
| Lufkin Industries, Inc. |
|
| 273,378 |
|
37,950 |
| McDermott International, Inc. (3) |
|
| 1,725,586 |
|
57,500 |
| Pioneer Drilling Co. (3) |
|
| 887,800 |
|
34,900 |
| Todco (3) |
|
| 1,425,665 |
|
40,800 |
| URS Corp. (3) |
|
| 1,713,600 |
|
|
|
|
|
| ||
|
|
|
|
| 11,382,570 |
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
|
Non-Energy Minerals (1.7%) |
|
|
|
| ||
16,300 |
| RTI International Metals, Inc. (3) |
|
| 910,192 |
|
26,100 |
| Titanium Metals Corp. (3) |
|
| 897,318 |
|
|
|
|
|
| ||
|
|
|
|
| 1,807,510 |
|
|
|
|
|
| ||
Producer Manufacturing (8.9%) |
|
|
|
| ||
31,750 |
| AMETEK, Inc. |
|
| 1,504,315 |
|
17,200 |
| Anixter International, Inc. (3) |
|
| 816,312 |
|
32,300 |
| Astec Industries, Inc. (3) |
|
| 1,102,076 |
|
31,800 |
| DRS Technologies, Inc. |
|
| 1,550,250 |
|
15,400 |
| IDEX Corp. |
|
| 726,880 |
|
27,025 |
| Joy Global, Inc. |
|
| 1,407,732 |
|
29,850 |
| Kaydon Corp. |
|
| 1,113,703 |
|
26,600 |
| Roper Industries, Inc. |
|
| 1,243,550 |
|
|
|
|
|
| ||
|
|
|
|
| 9,464,818 |
|
|
|
|
|
| ||
Retail Trade (3.2%) |
|
|
|
| ||
28,475 |
| Advance Auto Parts, Inc. |
|
| 822,927 |
|
49,475 |
| Coldwater Creek, Inc. (3) |
|
| 1,323,951 |
|
54,800 |
| Jos. A. Bank Clothiers, Inc. (3) |
|
| 1,313,008 |
|
|
|
|
|
| ||
|
|
|
|
| 3,459,886 |
|
|
|
|
|
| ||
Technology Services (8.2%) |
|
|
|
| ||
29,600 |
| ANSYS, Inc. (3) |
|
| 1,415,472 |
|
37,750 |
| Business Objects S.A., A.D.R. (3) |
|
| 1,026,800 |
|
17,700 |
| CACI International, Inc. (3) |
|
| 1,032,441 |
|
43,600 |
| Citrix Systems, Inc. (3) |
|
| 1,750,104 |
|
98,150 |
| Informatica Corp. (3) |
|
| 1,291,654 |
|
13,630 |
| j2 Global Communications, Inc. (3) |
|
| 425,529 |
|
21,925 |
| Kronos, Inc. (3) |
|
| 793,904 |
|
50,800 |
| Quest Software, Inc. (3) |
|
| 713,232 |
|
19,100 |
| The Ultimate Software Group, Inc. (3) |
|
| 365,956 |
|
|
|
|
|
| ||
|
|
|
|
| 8,815,092 |
|
|
|
|
|
| ||
Transportation (2.6%) |
|
|
|
| ||
21,800 |
| C.H. Robinson Worldwide, Inc. |
|
| 1,161,940 |
|
63,100 |
| UTI Worldwide, Inc. |
|
| 1,592,013 |
|
|
|
|
|
| ||
|
|
|
|
| 2,753,953 |
|
|
|
|
|
| ||
Utilities (1.7%) |
|
|
|
| ||
22,400 |
| Basin Water, Inc. (3) |
|
| 224,448 |
|
53,200 |
| Equitable Resources, Inc. |
|
| 1,782,200 |
|
|
|
|
|
| ||
|
|
|
|
| 2,006,648 |
|
|
|
|
|
| ||
Total common stocks |
|
|
|
| ||
(cost: $80,621,814) |
|
| 100,236,561 |
| ||
|
|
| ||||
|
|
|
|
| ||
7,018,000 |
| Sit Money Market Fund, 4.81% (4) |
|
| 7,018,000 |
|
|
|
|
|
| ||
(cost: $7,018,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
|
|
|
| ||
(cost: $87,639,814) (5) |
| $ | 107,254,561 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
35
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Robert W. Sit, Mark A. Pepper, Matt T. Loucks |
|
|
|
|
|
|
|
|
The Sit Science and Technology Growth Fund returned +9.63% over the past twelve months, compared to the +5.19% return for the ArcaEx Tech 100 Index. The Nasdaq Composite Price Index returned +5.59% 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 Value 6/30/06: |
| $10.02 Per Share |
6/30/05: |
| $9.14 Per Share |
|
|
|
Total Net Assets: |
| $13.0 Million |
|
|
|
Weighted Average Market Cap: |
| $33.3 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
| Sit |
|
| ArcaEx Tech 100 |
|
| Nasdaq |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
| -7.99 | % |
|
| -10.30 | % |
|
| -7.17 | % |
|
| ||
6 Month** |
| 5.11 |
|
|
| -6.24 |
|
|
| -1.51 |
|
|
| ||
1 Year |
| 9.63 |
|
|
| 5.19 |
|
|
| 5.59 |
|
|
| ||
3 Year |
| 7.57 |
|
|
| 11.72 |
|
|
| 10.20 |
|
|
| ||
5 Year |
| -8.01 |
|
|
| 1.56 |
|
|
| 0.11 |
|
|
| ||
Inception |
| 0.40 |
|
|
| 12.39 |
|
|
| 3.89 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
|
| ArcaEx |
|
| Nasdaq |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 Year |
| 9.63 | % |
|
| 5.19 | % |
|
| 5.59 | % |
|
| ||
3 Year |
| 24.47 |
|
|
| 39.45 |
|
|
| 33.84 |
|
|
| ||
5 Year |
| -34.14 |
|
|
| 8.05 |
|
|
| 0.53 |
|
|
| ||
Inception |
| 3.42 |
|
|
| 169.88 |
|
|
| 38.31 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 6/30/06 |
| **Not annualized. |
|
| |||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of 100 technology-related exchange-listed and over-the-counter stocks. |
(2) | A broad-based capitalization-weighted index that measures stocks in all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. The index includes over 3,000 companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/97) and held until 6/30/06 would have grown to $10,342 in the Fund or $26,988 in the ArcaEx Tech 100 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
1. | Google, Inc. |
2. | Celgene Corp. |
3. | Apple Computer, Inc. |
4. | Cisco Systems, Inc. |
5. | Qualcomm, Inc. |
6. | SAP, A.D.R. |
7. | Genentech, Inc. |
8. | NAVTEQ |
9. | Yahoo!, Inc. |
10. | Amgen, Inc. |
| Total Number of Holdings: 61 |
37
|
|
|
|
|
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (97.2%) (2) |
|
|
| ||
|
|
|
|
|
|
Electronic Technology (34.3%) |
|
|
| ||
12,000 |
| Advanced Energy Industries, Inc. (3) |
| 159,480 |
|
9,000 |
| Agilent Technologies, Inc. (3) |
| 284,040 |
|
8,600 |
| Analog Devices, Inc. |
| 276,404 |
|
7,000 |
| Apple Computer, Inc. (3) |
| 399,840 |
|
9,000 |
| Broadcom Corp. (3) |
| 270,450 |
|
20,000 |
| Cisco Systems, Inc. (3) |
| 390,600 |
|
20,300 |
| EMC Corp. (3) |
| 222,691 |
|
7,100 |
| Hewlett-Packard Co. |
| 224,928 |
|
11,200 |
| Intel Corp. |
| 212,240 |
|
7,017 |
| Juniper Networks, Inc. (3) |
| 112,202 |
|
2,500 |
| Lam Research Corp. (3) |
| 116,550 |
|
6,200 |
| Microsemi Corp. (3) |
| 151,156 |
|
5,600 |
| Motorola, Inc. |
| 112,840 |
|
6,800 |
| Network Appliance, Inc. (3) |
| 240,040 |
|
3,300 |
| Nokia Corp. |
| 66,858 |
|
9,600 |
| Qualcomm, Inc. |
| 384,672 |
|
13,000 |
| Radyne ComStream, Inc. (3) |
| 147,940 |
|
8,800 |
| Rimage Corp. (3) |
| 179,696 |
|
15,000 |
| Silicon Image, Inc. (3) |
| 161,700 |
|
3,200 |
| Trident Microsystems, Inc. (3) |
| 60,736 |
|
9,800 |
| Xilinx, Inc. |
| 221,970 |
|
2,400 |
| Xyratex, Ltd. (3) |
| 63,480 |
|
|
|
|
|
| |
|
|
|
| 4,460,513 |
|
|
|
|
|
| |
Health Technology (29.4%) |
|
|
| ||
3,700 |
| Advanced Medical Optics, Inc. (3) |
| 187,590 |
|
4,400 |
| Amgen, Inc. (3) |
| 287,012 |
|
4,700 |
| Amylin Pharmaceuticals, Inc. (3) |
| 232,039 |
|
11,800 |
| Celgene Corp. (3) |
| 559,674 |
|
6,000 |
| CV Therapeutics, Inc. (3) |
| 83,820 |
|
9,500 |
| Elan Corp., A.D.R (3) |
| 158,650 |
|
9,600 |
| ev3, Inc. (3) |
| 142,176 |
|
3,500 |
| Foxhollow Technologies, Inc. (3) |
| 95,620 |
|
3,700 |
| Genentech, Inc. (3) |
| 302,660 |
|
3,500 |
| Gen-Probe, Inc. (3) |
| 188,930 |
|
2,300 |
| Genzyme Corp. (3) |
| 140,415 |
|
3,900 |
| Gilead Sciences, Inc. (3) |
| 230,724 |
|
4,900 |
| Kyphon, Inc. (3) |
| 187,964 |
|
4,600 |
| Medtronic, Inc. |
| 215,832 |
|
11,800 |
| NuVasive, Inc. (3) |
| 215,114 |
|
6,000 |
| Surmodics, Inc. (3) |
| 216,660 |
|
5,000 |
| St. Jude Medical, Inc. (3) |
| 162,100 |
|
2,800 |
| Techne Corp. (3) |
| 142,576 |
|
2,300 |
| Vertex Pharmaceuticals, Inc. (3) |
| 84,433 |
|
|
|
|
|
| |
|
|
|
| 3,833,989 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| ||
|
|
|
|
|
|
Producer Manufacturing (3.0%) |
|
|
| ||
6,500 |
| Energy Conversion Devices, Inc. (3) |
| 236,795 |
|
3,700 |
| Harris Corp. |
| 153,587 |
|
|
|
|
|
| |
|
|
|
| 390,382 |
|
|
|
|
|
| |
Technology Services (30.5%) |
|
|
| ||
9,000 |
| Adobe Systems, Inc. (3) |
| 273,240 |
|
2,400 |
| Akamai Technologies, Inc. (3) |
| 86,856 |
|
4,400 |
| ANSYS, Inc. (3) |
| 210,408 |
|
3,300 |
| Autodesk, Inc. |
| 113,718 |
|
5,600 |
| Business Objects, A.D.R. (3) |
| 152,320 |
|
3,400 |
| Cognizant Technology Solutions Corp. (3) |
| 229,058 |
|
4,400 |
| First Data Corp. |
| 198,176 |
|
5,000 |
| Global Payments, Inc. |
| 242,750 |
|
1,600 |
| Google, Inc. (3) |
| 670,928 |
|
7,000 |
| J2 Global Communications, Inc. (3) |
| 218,540 |
|
8,700 |
| McAfee, Inc. (3) |
| 211,149 |
|
8,500 |
| Microsoft Corp. |
| 198,050 |
|
6,600 |
| NAVTEQ (3) |
| 294,888 |
|
2,300 |
| Red Hat, Inc. (3) |
| 53,820 |
|
7,000 |
| SAP, A.D.R. |
| 367,640 |
|
8,000 |
| Witness Sytems, Inc. (3) |
| 161,360 |
|
8,700 |
| Yahoo!, Inc. (3) |
| 287,100 |
|
|
|
|
|
| |
|
|
|
| 3,970,001 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 12,654,885 |
| ||
|
|
|
|
| |
(cost: $10,970,148) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (3.4%) (2) |
|
|
| ||
441,000 |
| Sit Money Market Fund, 4.81% (4) |
| 441,000 |
|
|
|
|
|
| |
(cost: $441,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $11,411,148) (5) |
| $ 13,095,885 |
| ||
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44. | |
|
|
38 |
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| |
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| ||
| |
| ||
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39
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|
| |
| One Year Ended June 30, 2006 |
|
|
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|
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|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Raymond E. Sit |
|
|
|
|
|
|
|
|
The Sit Developing Markets Growth Fund returned +34.47% for the latest fiscal year outperforming the MSCI Emerging Markets Index, which appreciated +32.27%. Positive stock selection was the primary driver of performance. The commodity-exposed holdings, along with the holdings in China and India, were key contributors to the outperformance. Latin American telecommunication and energy stocks were also positive contributors. This strong performance was partially offset by poor stock selection in Eastern Europe.
In Asia, the Fund moved to an overweight position at 58.2% compared with 53.5% for the Index. Commodity (BHP Billiton, POSCO, and Rio Tinto), energy (Xinao Gas and PetroChina), and technology (Taiwain Semiconductor) companies were the unmistakable contributors. In addition, we recently added KS Energy, Wumart Stores, LOTTE Shopping, and High Tech Computer to the Fund.
The Latin American weight increased slightly to 23.7% versus the Index weight of 19.9%. High oil and material prices are driving consumption growth, leading to further economic expansion. Some of the Fund’s holdings include Southern Copper, Tenaris, Telefonos de Mexico, NII Holdings, and America Movil.
In Europe, the Fund’s weight has remained virtually unchanged at 8.2% compared to the Index at 13.8%. While the material (Anglo American) and utility (CEZ) holdings contributed positively, this was more than offset by the Hungarian and Turkish financial holdings as those countries aggressively raised interest rates. The Fund recently increased its energy exposure in Eastern Europe through Gazprom (Russia) and Tupras (Turkish refiner).
The Fund continues to remain underweight in the Middle East and Africa (8.0% versus 12.8% for the Index). The violence in the Middle East has caused us to become more cautious. The Fund’s Israeli holdings consist of global companies that have only a portion of the operations in the Middle East and excellent contingency plans.
|
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 6/30/06: |
| $17.38 Per Share |
6/30/05: |
| $12.97 Per Share |
|
|
|
Total Net Assets: |
| $13.1 Million |
|
|
|
Weighted Average Market Cap: |
| $47.7 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
40
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| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit |
| MSCI |
| MSCI |
| ||||
3 Month** |
| -3.12 | % |
| -5.11 | % |
| -5.75 | % |
| |
6 Month** |
| 8.56 |
|
| 5.81 |
|
| 5.00 |
|
| |
1 Year |
| 34.47 |
|
| 32.27 |
|
| 33.04 |
|
| |
5 Year |
| 13.88 |
|
| 18.28 |
|
| 16.55 |
|
| |
10 Year |
| 4.85 |
|
| 4.08 |
|
| n/a |
|
| |
Inception |
| 4.87 |
|
| 3.77 |
|
| n/a |
|
| |
(7/1/94) |
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
| Sit |
| MSCI |
|
|
| ||||
1 Year |
| 34.47 | % |
| 32.27 | % |
| 33.04 | % |
| |
5 Year |
| 91.55 |
|
| 131.52 |
|
| 115.09 |
|
| |
10 Year |
| 60.60 |
|
| 49.20 |
|
| n/a |
|
| |
Inception |
| 76.95 |
|
| 56.00 |
|
| n/a |
|
| |
(7/1/94) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/06 |
|
| **Not annualized. |
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. | |
(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 6/30/96 and held until 6/30/06 would have increased to $16,060 in the Fund, or $14,920 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
41
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
| ||
|
|
| ||
| Portfolio of Investments - June 30, 2006 |
| ||
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
1. | Samsung Electronics |
2. | Petroleo Brasliero |
3. | BHP Billiton, Ltd. A.D.R. |
4. | America Movil, A.D.R. |
5. | Cia Vale Do Rio Doce |
6. | NII Holdings, Inc. |
7. | India Fund |
8. | Anglo American |
9. | Petrochina |
10. | Ceske Energeticke Zavody |
| Total Number of Holdings: 75 |
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
|
|
|
|
|
Common Stocks (95.6%) (2) |
|
| ||
Africa/ Middle East (8.0%) |
|
| ||
Israel (5.6%) |
|
| ||
4,600 |
| Amdocs, Ltd. (Technology Svcs.) (3) |
| 168,360 |
7,350 |
| Lipman (Electronic Tech.) |
| 208,593 |
5,000 |
| NICE Systems Ltd., A.D.R. (Electronic Tech.) (3) |
| 140,700 |
6,800 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) |
| 214,812 |
|
|
|
| |
|
|
|
| 732,465 |
|
|
|
| |
South Africa (2.4%) |
|
| ||
5,300 |
| Bidvest Group, Ltd. (Consumer Svcs.) |
| 73,387 |
6,900 |
| Naspers, Ltd. (Consumer Svcs.) |
| 117,910 |
3,000 |
| Sasol (Energy Minerals) |
| 115,920 |
|
|
|
| |
|
|
|
| 307,217 |
|
|
|
| |
Asia (55.7%) |
|
| ||
Australia (4.9%) |
|
| ||
8,910 |
| BHP Billiton, Ltd., A.D.R. (Non-Energy Minerals) |
| 383,754 |
1,200 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) |
| 251,652 |
|
|
|
| |
|
|
|
| 635,406 |
|
|
|
| |
China / Hong Kong (10.3%) |
|
| ||
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) |
| 121,038 |
45,000 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 164,700 |
262,000 |
| PetroChina Co. (Energy Minerals) |
| 279,979 |
161,808 |
| Ports Design, Ltd. (Retail Trade) |
| 260,409 |
11,000 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 112,167 |
118,000 |
| Tsingtao Brewery Co., Ltd. (Consumer Non-Durables) |
| 132,175 |
12,000 |
| Wumart Stores, Inc. (Retail Trade) |
| 41,329 |
242,000 |
| Xinao Gas Holdings, Ltd. (Utlities) |
| 230,565 |
|
|
|
| |
|
|
|
| 1,342,362 |
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
|
|
|
|
|
India * (4.6%) |
|
| ||
6,400 |
| ICICI Bank, A.D.R. (Finance) |
| 151,360 |
2,300 |
| Infosys Technologies, Ltd., A.D.R. (Technology Svcs.) |
| 175,743 |
4,700 |
| Reliance Industries, Ltd., G.D.R. (Energy Minerals) |
| 271,613 |
|
|
|
| |
|
|
|
| 598,716 |
|
|
|
| |
Indonesia (1.4%) |
|
| ||
71,500 |
| PT Astra International Tbk (Producer Mfg.) |
| 75,259 |
3,400 |
| PT Telekomunikasi (Communications) |
| 109,140 |
|
|
|
| |
|
|
|
| 184,399 |
|
|
|
| |
Phillipines (1.1%) |
|
| ||
991,000 |
| Manila Water Co. (Utilities) |
| 139,899 |
|
|
|
| |
Russia (4.2%) |
|
| ||
2,775 |
| Gazprom, A.D.R. (Energy Minerals) |
| 116,689 |
3,100 |
| LUKOIL, A.D.R. (Energy Minerals) |
| 259,098 |
3,800 |
| Vimpel Communications, A.D.R. (Communications) (3) |
| 174,116 |
|
|
|
| |
|
|
|
| 549,903 |
|
|
|
| |
Singapore (1.4%) |
|
| ||
27,600 |
| KS Energy Services, Ltd. (Energy Minerals) |
| 35,605 |
109,000 |
| Starhub, Ltd. (Communications) |
| 157,157 |
|
|
|
| |
|
|
|
| 192,762 |
|
|
|
| |
South Korea (15.9%) |
|
| ||
550 |
| Cheil Communications, Inc. (Commercial Svcs.) |
| 109,861 |
11,507 |
| Industrial Bank of Korea (Finance) |
| 193,318 |
5,200 |
| Korea Electric Power Corp. (Utilities) |
| 98,592 |
2,200 |
| Kookmin Bank (Finance) |
| 180,879 |
1,900 |
| Kookmin Bank, A.D.R. (Finance) |
| 157,814 |
1,831 |
| Lotte Shopping Co., Ltd., G.D.R. (Retail Trade) (3) |
| 35,082 |
1,800 |
| POSCO, A.D.R. (Non-Energy Minerals) |
| 120,420 |
1,080 |
| Samsung Electronics (Electronic Tech.) |
| 686,455 |
5,600 |
| Shinhan Financial Group (Finance) |
| 262,675 |
310 |
| Shinsegae Co., Ltd. (Retail Trade) |
| 155,212 |
3,100 |
| SK Telecom Co., A.D.R. (Communications) |
| 72,602 |
|
|
|
| |
|
|
|
| 2,072,910 |
|
|
|
| |
Taiwan (9.4%) |
|
| ||
33,000 |
| Asustek Computer, Inc. (Electronic Tech.) |
| 81,030 |
76,000 |
| Cathay Financial Holding Co., Ltd. (Finance) |
| 166,192 |
6,000 |
| High Tech Computer Corp. (Electronic Tech.) |
| 164,932 |
21,893 |
| Hon Hai Precision Industry Co., Ltd. G.D.R. (Electronic Tech.) |
| 264,907 |
9,000 |
| Hon Hai Precision Industry Co. , Ltd. (Electronic Tech.) |
| 55,595 |
8,500 |
| MediaTek, Inc. (Electronic Tech.) |
| 78,760 |
110,809 |
| Taiwan Semiconductor Co. (Electronic Tech.) |
| 199,872 |
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | ||
|
|
|
|
| |
24,514 |
| Taiwan Semiconductor Manufacturing |
|
| |
|
| Co., Ltd., A.D.R. (Electronic Tech.) |
| 225,036 | |
|
|
|
| ||
|
|
|
| 1,236,324 | |
|
|
|
| ||
Thailand (2.5%) | |||||
45,000 |
| Advanced Info Service Public Co., Ltd. (Communications) |
| 106,146 | |
37,600 |
| Bangkok Bank Public Co., Ltd. (Finance) |
| 104,458 | |
68,200 |
| Thai Public Oil Co. (Energy Minerals) |
| 113,503 | |
|
|
|
| ||
|
|
|
| 324,107 | |
|
|
|
| ||
Europe (8.2%) | |||||
Czech Republic (3.6%) | |||||
3,000 |
| Central European Media Enterprises, Ltd. |
|
| |
|
| (Consumer Svcs.) (3) |
| 189,570 | |
8,200 |
| CEZ (Utilities) |
| 276,254 | |
|
|
|
| ||
|
|
|
| 465,824 | |
|
|
|
| ||
Hungary (0.5%) | |||||
1,200 |
| OTP Bank, G.D.R. (Finance) |
| 67,800 | |
|
|
|
| ||
|
|
|
|
| |
Turkey (1.9%) | |||||
30,339 |
| Finansbank AS (Finance) |
| 147,063 | |
6,000 |
| Tupras-Turkiye Petrol Rafinerileri A.S. |
|
| |
|
| (Energy Minerals) |
| 100,094 | |
|
|
|
| ||
|
|
|
| 247,157 | |
|
|
|
| ||
United Kingdom (2.2%) | |||||
7,090 |
| Anglo American p.l.c. (Non-Energy Minerals) |
| 290,854 | |
|
|
|
| ||
|
|
|
|
| |
Latin America (23.7%) | |||||
Argentina (1.7%) | |||||
5,550 |
| Tenaris S.A., A.D.R. (Industrial Svcs.) |
| 224,719 | |
|
|
|
| ||
|
|
|
|
| |
Brazil (11.0%) | |||||
4,800 |
| AES Tiete S.A. (Utilities) |
| 115,329 | |
5,958 |
| Banco Bradesco S.A. (Finance) |
| 185,905 | |
2,100 |
| Companhia Brasileira de Distribuicao Grupo |
|
| |
|
| Pao de Acucar, A.D.R. (Retail Trade) |
| 65,394 | |
2,100 |
| Companhia de Bebidas das Americas |
| 86,625 | |
14,600 |
| Companhia Vale do Rio Doce, A.D.R. |
|
| |
|
| (Non-Energy Minerals) |
| 350,984 | |
3,883 |
| Embraer de Aeronautica, A.D.R. (Producer Mfg.) |
| 141,613 | |
19,940 |
| Petrobras (Energy Minerals) |
| 396,635 | |
6,900 |
| Tele Norte Leste Participacoes, A.D.R. |
|
| |
|
| (Communications) |
| 87,975 | |
|
|
|
| ||
|
|
|
| 1,430,460 | |
|
|
|
| ||
Mexico (10.0%) | |||||
10,800 |
| America Movil, A.D.R. (Communications) |
| 359,208 | |
1,500 |
| Cemex S.A. de C.V., A.D.R. |
|
| |
|
| (Non-Energy Minerals) |
| 85,455 |
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
6,400 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) |
| 123,584 |
4,200 |
| Homex, A.D.R. (Consumer Durables) (3) |
| 137,802 |
5,700 |
| NII Holdings, Inc. (Communications) (3) |
| 321,366 |
3,800 |
| Telefonos de Mexico, A.D.R. |
|
|
|
| (Communications) |
| 79,154 |
72,540 |
| Wal-Mart de Mexico (Retail Trade) |
| 203,720 |
|
|
|
| |
|
|
|
| 1,310,289 |
|
|
|
| |
Peru (1.0%) | ||||
1,400 |
| Southern Copper Corp. |
|
|
|
| (Non-Energy Minerals) |
| 124,782 |
|
|
|
| |
|
|
|
|
|
Total common stocks |
| 12,478,355 | ||
|
|
|
| |
(cost: $7,376,939) |
|
| ||
| ||||
6,940 |
| India Fund* (Consumer Services) |
| 320,559 |
|
|
|
| |
(cost: $98,294) |
|
| ||
| ||||
238,000 |
| Sit Money Market Fund, 4.81% (4) |
| 238,000 |
|
|
|
| |
(cost: $238,000) |
|
| ||
|
|
| ||
(cost: $7,713,233) (5) |
| $13,036,914 | ||
|
|
|
| |
|
|
|
|
|
* The fund’s total investments in India including the India Fund comprises 7.0% 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 June 30, 2006, the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation based on that cost were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
| ||||||||
Cost for federal income tax purposes |
| $ | 10,443,954 |
| $ | 21,932,970 |
| $ | 87,452,944 |
| $ | 139,994,663 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 1,692,664 |
| $ | 2,557,509 |
| $ | 19,559,245 |
| $ | 57,037,434 |
|
Gross unrealized depreciation |
|
| (510,396 | ) |
| (223,174 | ) |
| (5,213,566 | ) |
| (5,124,837 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 1,182,268 |
| $ | 2,334,335 |
| $ | 14,345,679 |
| $ | 51,912,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
Cost for federal income tax purposes |
| $ | 25,188,287 |
| $ | 87,645,003 |
| $ | 11,458,260 |
| $ | 7,713,233 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 10,009,831 |
| $ | 24,865,933 |
| $ | 3,068,763 |
| $ | 5,418,810 |
|
Gross unrealized depreciation |
|
| (494,748 | ) |
| (5,256,375 | ) |
| (1,431,138 | ) |
| (95,129 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 9,515,083 |
| $ | 19,609,558 |
| $ | 1,637,625 |
| $ | 5,323,681 |
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
| |
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| ||
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|
| ||
| |
| ||
|
|
|
|
|
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45
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
| ||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 10,373,182 |
| $ | 21,902,409 |
| $ | 87,416,166 |
| $ | 139,940,778 |
|
|
|
|
|
|
| ||||||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 11,482,222 |
| $ | 23,643,305 |
| $ | 95,242,623 |
| $ | 174,925,260 |
|
Investments in affiliated mutual funds |
|
| 144,000 |
|
| 624,000 |
|
| 6,556,000 |
|
| 16,982,000 |
|
Cash in bank on demand deposit |
|
| 828 |
|
| 1,806 |
|
| 101 |
|
| 582 |
|
Accrued interest and dividends receivable |
|
| 38,176 |
|
| 33,497 |
|
| 110,095 |
|
| 141,955 |
|
Receivable for investment securities sold |
|
| 51,964 |
|
| 43,286 |
|
| — |
|
| — |
|
Other receivables |
|
| — |
|
| — |
|
| 11,287 |
|
| 30 |
|
Receivable for Fund shares sold |
|
| — |
|
| — |
|
| 97,025 |
|
| — |
|
|
|
|
|
|
| ||||||||
Total assets |
|
| 11,717,190 |
|
| 24,345,894 |
|
| 102,017,131 |
|
| 192,049,827 |
|
|
|
|
|
|
| ||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 40,598 |
|
| 140,699 |
|
| 45,480 |
|
| 123,727 |
|
Payable for Fund shares redeemed |
|
| 44,041 |
|
| — |
|
| 15,889 |
|
| 59,777 |
|
Other payables |
|
| 6,016 |
|
| 215 |
|
| — |
|
| 148,725 |
|
Accrued investment management and advisory services fee |
|
| 9,641 |
|
| 19,468 |
|
| 82,894 |
|
| 176,449 |
|
|
|
|
|
|
| ||||||||
Total liabilities |
|
| 100,296 |
|
| 160,382 |
|
| 144,263 |
|
| 508,678 |
|
|
|
|
|
|
| ||||||||
Net assets applicable to outstanding capital stock |
| $ | 11,616,894 |
| $ | 24,185,512 |
| $ | 101,872,868 |
| $ | 191,541,149 |
|
|
|
|
|
|
| ||||||||
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 15,266,723 |
| $ | 21,476,073 |
| $ | 106,508,000 |
| $ | 166,040,138 |
|
Undistributed (distributions in excess of) net investment income |
|
| 56,964 |
|
| 113,866 |
|
| 332,855 |
|
| — |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,959,833 | ) |
| 230,677 |
|
| (19,350,444 | ) |
| (26,465,471 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 1,253,040 |
|
| 2,364,896 |
|
| 14,382,457 |
|
| 51,966,482 |
|
|
|
|
|
|
| ||||||||
|
| $ | 11,616,894 |
| $ | 24,185,512 |
| $ | 101,872,868 |
| $ | 191,541,149 |
|
|
|
|
|
|
| ||||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 767,093 |
|
| 1,968,096 |
|
| 2,709,662 |
|
| 14,726,125 |
|
Class S |
|
| — |
|
| 3,944 |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 11,616,894 |
|
| 24,137,160 |
|
| 101,872,868 |
|
| 191,541,149 |
|
Class S |
|
| — |
|
| 48,352 |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 15.14 |
| $ | 12.26 |
| $ | 37.60 |
| $ | 13.01 |
|
Class S |
|
| — |
| $ | 12.26 |
|
| — |
|
| — |
|
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 25,185,451 |
| $ | 87,639,814 |
| $ | 11,411,148 |
| $ | 7,713,233 |
|
|
|
|
|
|
| ||||||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 33,780,370 |
| $ | 100,236,561 |
| $ | 12,654,885 |
| $ | 12,798,914 |
|
Investments in affiliated mutual funds |
|
| 923,000 |
|
| 7,018,000 |
|
| 441,000 |
|
| 238,000 |
|
Cash in bank on demand deposit |
|
| 12,841 |
|
| 75 |
|
| 568 |
|
| 4,752 |
|
Accrued interest and dividends receivable |
|
| 106,062 |
|
| 50,785 |
|
| 3,098 |
|
| 36,329 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
| — |
|
| — |
|
Other receivables |
|
| — |
|
| 52,164 |
|
| — |
|
| 5,538 |
|
Receivable for Fund shares sold |
|
| — |
|
| 45,163 |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Total assets |
|
| 34,822,273 |
|
| 107,402,748 |
|
| 13,099,551 |
|
| 13,083,533 |
|
|
|
|
|
|
| ||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 47,544 |
|
| 78,080 |
|
| 29,700 |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
| 211,051 |
|
| 17,200 |
|
| 5,003 |
|
Other payables |
|
| 29,024 |
|
| — |
|
| 13,997 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 46,162 |
|
| 136,670 |
|
| 14,266 |
|
| 21,254 |
|
|
|
|
|
|
| ||||||||
Total liabilities |
|
| 122,730 |
|
| 425,801 |
|
| 75,163 |
|
| 26,257 |
|
|
|
|
|
|
| ||||||||
Net assets applicable to outstanding capital stock |
| $ | 34,699,543 |
| $ | 106,976,947 |
| $ | 13,024,388 |
| $ | 13,057,276 |
|
|
|
|
|
|
| ||||||||
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 57,946,136 |
| $ | 132,365,608 |
| $ | 32,103,224 |
| $ | 8,592,767 |
|
Undistributed (distributions in excess of) net investment income |
|
| 302,768 |
|
| — |
|
| — |
|
| 33,269 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (33,067,076 | ) |
| (45,003,408 | ) |
| (20,763,573 | ) |
| (892,393 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 9,517,715 |
|
| 19,614,747 |
|
| 1,684,737 |
|
| 5,323,633 |
|
|
|
|
|
|
| ||||||||
|
| $ | 34,699,543 |
| $ | 106,976,947 |
| $ | 13,024,388 |
| $ | 13,057,276 |
|
|
|
|
|
|
| ||||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 2,241,276 |
|
| 3,196,758 |
|
| 1,299,210 |
|
| 751,304 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 34,699,543 |
|
| 106,976,947 |
|
| 13,024,388 |
|
| 13,057,276 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 15.48 |
| $ | 33.46 |
| $ | 10.02 |
| $ | 17.38 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
47
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| One Year Ended June 30, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 128,799 |
| $ | 581,465 |
| $ | 1,037,333 |
| $ | 1,933,630 |
|
Interest |
|
| 208,545 |
|
| 25,418 |
|
| 218,410 |
|
| 463,910 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 337,344 |
|
| 606,883 |
|
| 1,255,743 |
|
| 2,397,540 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 121,175 |
|
| 196,117 |
|
| 859,434 |
|
| 2,683,950 |
|
12b-1 Fee - Class S |
|
| — |
|
| 23 |
|
| — |
|
| — |
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
| (214,716 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Total net expenses |
|
| 121,175 |
|
| 196,140 |
|
| 859,434 |
|
| 2,469,234 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net investment income (loss) |
|
| 216,169 |
|
| 410,743 |
|
| 396,309 |
|
| (71,694 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 557,766 |
|
| 333,820 |
|
| 2,613,549 |
|
| 25,755,297 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (46,730 | ) |
| 1,571,176 |
|
| 3,560,526 |
|
| 3,751,384 |
|
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net gain (loss) on investments |
|
| 511,036 |
|
| 1,904,996 |
|
| 6,174,075 |
|
| 29,506,681 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 727,205 |
| $ | 2,315,739 |
| $ | 6,570,384 |
| $ | 29,434,987 |
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 773,600 |
| $ | 1,229,818 |
| $ | 74,878 |
| $ | 287,124 |
|
Interest |
|
| 19,447 |
|
| 636,327 |
|
| 16,844 |
|
| 23,058 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 793,047 |
|
| 1,866,145 |
|
| 91,722 |
|
| 310,182 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 598,888 |
|
| 3,366,584 |
|
| 220,582 |
|
| 276,674 |
|
12b-1 Fee - Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Less fees and expenses absorbed by investment adviser |
|
| (113,303 | ) |
| — |
|
| (22,058 | ) |
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total net expenses |
|
| 485,585 |
|
| 3,366,584 |
|
| 198,524 |
|
| 276,674 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net investment income (loss) |
|
| 307,462 |
|
| (1,500,439 | ) |
| (106,802 | ) |
| 33,508 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 1,367,545 |
|
| 65,957,997 |
|
| 1,360,505 |
|
| 1,505,004 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 5,615,497 |
|
| (22,453,267 | ) |
| 256,256 |
|
| 2,399,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gain (loss) on foreign currency transactions |
|
| (2,930 | ) |
| — |
|
| — |
|
| (239 | ) |
|
|
|
|
|
| ||||||||
| |||||||||||||
Net gain (loss) on investments |
|
| 6,980,112 |
|
| 43,504,730 |
|
| 1,616,761 |
|
| 3,904,438 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 7,287,574 |
| $ | 42,004,291 |
| $ | 1,509,959 |
| $ | 3,937,946 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
49
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| ||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 216,169 |
| $ | 221,521 |
| $ | 410,743 |
| $ | 182,928 |
|
Net realized gain (loss) on investments |
|
| 557,766 |
|
| 200,246 |
|
| 333,820 |
|
| 174,285 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (46,730 | ) |
| 426,322 |
|
| 1,571,176 |
|
| 671,537 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) in net assets resulting from operations |
|
| 727,205 |
|
| 848,089 |
|
| 2,315,739 |
|
| 1,028,750 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (212,000 | ) |
| (226,000 | ) |
| (360,567 | ) |
| (146,000 | ) |
Class S |
|
| — |
|
| — |
|
| (432 | ) |
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| (225,199 | ) |
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (212,000 | ) |
| (226,000 | ) |
| (586,198 | ) |
| (146,000 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 1,107,413 |
|
| 1,225,645 |
|
| 9,310,708 |
|
| 7,459,382 |
|
Class S |
|
| — |
|
| — |
|
| 148,812 |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 210,264 |
|
| 223,911 |
|
| 553,551 |
|
| 128,579 |
|
Class S |
|
| — |
|
| — |
|
| 432 |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (2,467,234 | ) |
| (2,261,666 | ) |
| (1,650,145 | ) |
| (1,146,817 | ) |
Class S |
|
| — |
|
| — |
|
| (103,054 | ) |
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| (1,149,557 | ) |
| (812,110 | ) |
| 8,260,304 |
|
| 6,441,144 |
|
Total increase (decrease) in net assets |
|
| (634,352 | ) |
| (190,021 | ) |
| 9,989,845 |
|
| 7,323,894 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 12,251,246 |
|
| 12,441,267 |
|
| 14,195,667 |
|
| 6,871,773 |
|
End of period * |
| $ | 11,616,894 |
| $ | 12,251,246 |
| $ | 24,185,512 |
|
| 14,195,667 |
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 72,829 |
|
| 87,493 |
|
| 791,386 |
|
| 685,735 |
|
Class S |
|
| — |
|
| — |
|
| 12,109 |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 13,980 |
|
| 16,112 |
|
| 47,474 |
|
| 12,085 |
|
Class S |
|
| — |
|
| — |
|
| 35 |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (163,103 | ) |
| (161,837 | ) |
| (140,037 | ) |
| (106,290 | ) |
Class S |
|
| — |
|
| — |
|
| (8,200 | ) |
| — |
|
Net increase (decrease) |
|
| (76,294 | ) |
| (58,232 | ) |
| 702,767 |
|
| 591,530 |
|
* includes undistributed net investment income |
| $ | 56,964 |
| $ | 52,795 |
| $ | 113,866 |
| $ | 64,122 |
|
** includes a distribution in kind to a shareholder as further described on page 58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| ||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 396,309 |
| $ | 308,015 |
|
| ($71,694 | ) |
| ($1,290,166 | ) | $ | 307,462 |
| $ | 179,116 |
|
Net realized gain (loss) on investments |
|
| 2,613,549 |
|
| 1,598,533 |
|
| 25,755,297 |
|
| 18,274,052 |
|
| 1,367,545 |
|
| 1,683,427 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 3,560,526 |
|
| 2,685,949 |
|
| 3,751,384 |
|
| 1,928,476 |
|
| 5,615,497 |
|
| 1,267,378 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (2,930 | ) |
| (3,346 | ) |
Net increase (decrease) in net assets resulting from operations |
|
| 6,570,384 |
|
| 4,592,497 |
|
| 29,434,987 |
|
| 18,912,362 |
|
| 7,287,574 |
|
| 3,126,575 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (142,009 | ) |
| (233,010 | ) |
| — |
|
| — |
|
| (155,624 | ) |
| (88,998 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (142,009 | ) |
| (233,010 | ) |
| — |
|
| — |
|
| (155,624 | ) |
| (88,998 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 48,327,703 |
|
| 11,464,016 |
|
| 32,211,296 |
|
| 11,260,285 |
|
| 3,805,246 |
|
| 2,548,414 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 139,973 |
|
| 226,798 |
|
| — |
|
| — |
|
| 150,321 |
|
| 85,684 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (22,683,527 | ) |
| (10,164,271 | ) |
| (69,554,035 | ) ** |
| (35,669,542 | ) |
| (5,539,961 | ) |
| (10,801,021 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| 25,784,149 |
|
| 1,526,543 |
|
| (37,342,739 | ) |
| (24,409,257 | ) |
| (1,584,394 | ) |
| (8,166,923 | ) |
Total increase (decrease) in net assets |
|
| 32,212,524 |
|
| 5,886,030 |
|
| (7,907,752 | ) |
| (5,496,895 | ) |
| 5,547,556 |
|
| (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 * |
| $ | 101,872,868 |
| $ | 69,660,344 |
| $ | 191,541,149 |
| $ | 199,448,901 |
| $ | 34,699,543 |
| $ | 29,151,987 |
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 1,281,385 |
|
| 343,372 |
|
| 2,494,929 |
|
| 1,082,405 |
|
| 259,299 |
|
| 212,627 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 3,705 |
|
| 6,710 |
|
| — |
|
| — |
|
| 10,475 |
|
| 6,944 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (608,057 | ) |
| (312,867 | ) |
| (5,452,712 | ) |
| (3,433,755 | ) |
| (396,344 | ) |
| (900,411 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) |
|
| 677,033 |
|
| 37,215 |
|
| (2,957,783 | ) |
| (2,351,350 | ) |
| (126,570 | ) |
| (680,840 | ) |
* includes undistributed net investment income |
| $ | 332,855 |
| $ | 86,094 |
| $ | — |
| $ | — |
| $ | 302,768 |
| $ | 153,860 |
|
** includes a distribution in kind to a shareholder as further described on page 58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
51
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Statements of Changes in Net Assets (continued) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Cap |
| Science and |
| ||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| ($ | 1,500,439 | ) | ($ | 1,932,354 | ) | ($ | 106,802 | ) | ($ | 158,065 | ) |
Net realized gain (loss) on investments |
|
| 65,957,997 |
|
| 2,422,217 |
|
| 1,360,505 |
|
| 614 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (22,453,267 | ) |
| 15,168,019 |
|
| 256,256 |
|
| (1,479,200 | ) |
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) in net assets resulting from operations |
|
| 42,004,291 |
|
| 15,657,882 |
|
| 1,509,959 |
|
| (1,636,651 | ) |
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 67,113,600 |
|
| 10,163,917 |
|
| 993,856 |
|
| 1,110,784 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (182,685,874 | )** |
| (45,087,231 | ) |
| (4,021,634 | ) |
| (3,985,450 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| (115,572,274 | ) |
| (34,923,314 | ) |
| (3,027,778 | ) |
| (2,874,666 | ) |
Total increase (decrease) in net assets |
|
| (73,567,983 | ) |
| (19,265,432 | ) |
| (1,517,819 | ) |
| (4,511,317 | ) |
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 180,544,930 |
|
| 199,810,362 |
|
| 14,542,207 |
|
| 19,053,524 |
|
End of period * |
| $ | 106,976,947 |
| $ | 180,544,930 |
| $ | 13,024,388 |
| $ | 14,542,207 |
|
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 2,134,112 |
|
| 406,347 |
|
| 94,836 |
|
| 120,559 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (5,446,229 | ) |
| (1,796,847 | ) |
| (387,380 | ) |
| (429,929 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) |
|
| (3,312,117 | ) |
| (1,390,500 | ) |
| (292,544 | ) |
| (309,370 | ) |
* includes undistributed net investment income |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
** includes a distribution in kind to a shareholder as further described on page 58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Developing Markets |
| ||||
|
| Year ended |
| Year ended |
| ||
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 33,508 |
| $ | 48,117 |
|
Net realized gain (loss) on investments |
|
| 1,505,004 |
|
| 449,916 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 2,399,673 |
|
| 1,886,718 |
|
Net realized gain (loss) on foreign currency transactions |
|
| (239 | ) |
| 3,383 |
|
Net increase (decrease) in net assets resulting from operations |
|
| 3,937,946 |
|
| 2,388,134 |
|
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Class I |
|
| (51,306 | ) |
| (13,238 | ) |
Class S |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
Total distributions |
|
| (51,306 | ) |
| (13,238 | ) |
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
Class I |
|
| 8,600,888 |
|
| 5,091,018 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 50,380 |
|
| 12,927 |
|
Class S |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
Class I |
|
| (10,055,526 | ) |
| (4,934,365 | ) |
Class S |
|
| — |
|
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| (1,404,258 | ) |
| 169,580 |
|
Total increase (decrease) in net assets |
|
| 2,482,382 |
|
| 2,544,476 |
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 10,574,894 |
|
| 8,030,418 |
|
End of period * |
| $ | 13,057,276 |
| $ | 10,574,894 |
|
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
Class I |
|
| 533,524 |
|
| 427,219 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 3,193 |
|
| 1,121 |
|
Class S |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
Class I |
|
| (600,702 | ) |
| (425,079 | ) |
Class S |
|
| — |
|
| — |
|
Net increase (decrease) |
|
| (63,985 | ) |
| 3,261 |
|
* includes undistributed net investment income |
| $ | 33,269 |
| $ | 51,306 |
|
** includes a distribution in kind to a shareholder as further described on page 58 |
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|
|
|
|
|
See accompanying notes to financial statements on page 54.
53
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| Sit Mutual Funds |
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(1) | Summary of Significant Accounting Policies |
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| 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. |
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| 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: |
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|
Fund | Investment Objective |
Balanced | Long-term growth consistent with the preservation of principal and to provide regular income. |
Dividend Growth | Provide current 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 Growth | Maximize long-term capital appreciation. |
Developing Markets Growth | Maximize long-term capital appreciation. |
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|
| The Dividend Growth Fund offers Class I and Class S shares. Both classes of shares have identical voting, dividend, and liquidation rights. The distribution fee differs among classes; Class S shares have a 0.25% distribution fee, whereas Class I has no distribution fee. Income, expenses (other than class-specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets. |
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| Significant accounting policies followed by the Funds are summarized below: |
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| 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. |
54
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| 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 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. |
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| 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. |
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| Line of Credit |
| The Funds have a $25,000,000 committed line of credit through PNC Bank, N.A., whereby the Funds may borrow for the temporary funding of shareholder redemptions or for other temporary purposes. Interest is charged to each Fund based on its borrowings at a rate equal to the Federal Funds Rate plus fifty basis points (0.50%). The Funds had no borrowings outstanding during the year ended June 30, 2006. |
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| Illiquid Securities |
| Each Fund currently limits investments in illiquid securities to 15% of net assets. At June 30, 2006, 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. |
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| 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. |
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| 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
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| Sit Mutual Funds |
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| Notes to Financial Statements (continued) |
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| 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. |
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| 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 from 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. |
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| Year Ended June 30, 2006: |
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| Ordinary Income |
| Long Term Capital Gain |
| Total |
| |||||||||
| Balanced |
|
| $ | 212,000 |
|
|
|
| — |
|
|
| $ | 212,000 |
|
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| Dividend Growth |
|
|
| 371,390 |
|
|
|
| 214,808 |
|
|
|
| 586,198 |
|
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| Large Cap Growth |
|
|
| 142,009 |
|
|
|
| — |
|
|
|
| 142,009 |
|
|
| Mid Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| International Growth |
|
|
| 155,624 |
|
|
|
| — |
|
|
|
| 155,624 |
|
|
| Small Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| Science and Technology Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| Developing Markets Growth |
|
|
| 51,306 |
|
|
|
| — |
|
|
|
| 51,306 |
|
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|
|
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| Year Ended June 30, 2005: |
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|
|
|
|
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|
|
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|
|
|
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|
| Ordinary Income |
| Long Term Capital Gain |
| Total |
| |||||||||
| Balanced |
|
| $ | 226,000 |
|
|
|
| — |
|
|
| $ | 226,000 |
|
|
| Dividend Growth |
|
|
| 146,000 |
|
|
|
| — |
|
|
|
| 146,000 |
|
|
| Large Cap Growth |
|
|
| 233,010 |
|
|
|
| — |
|
|
|
| 233,010 |
|
|
| Mid Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| International Growth |
|
|
| 88,998 |
|
|
|
| — |
|
|
|
| 88,998 |
|
|
| Small Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| Science and Technology Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| Developing Markets Growth |
|
|
| 13,238 |
|
|
|
| — |
|
|
|
| 13,238 |
|
|
56
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| As of June 30, 2006, the components of distributable earnings on a tax basis were as follows: |
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|
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|
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| Undistributed |
| Accumulated |
| Unrealized |
| |||||||||
| Balanced |
|
| $ | 56,964 |
|
|
|
| ($4,889,061 | ) |
|
| $ | 1,182,268 |
|
|
| Dividend Growth |
|
|
| 185,311 |
|
|
|
| 189,793 |
|
|
|
| 2,334,335 |
|
|
| Large Cap Growth |
|
|
| 332,855 |
|
|
|
| (19,313,665 | ) |
|
|
| 14,345,679 |
|
|
| Mid Cap Growth |
|
|
| — |
|
|
|
| (26,411,586 | ) |
|
|
| 51,912,597 |
|
|
| International Growth |
|
|
| 305,103 |
|
|
|
| (33,066,574 | ) |
|
|
| 9,514,879 |
|
|
| Small Cap Growth |
|
|
| — |
|
|
|
| (44,998,219 | ) |
|
|
| 19,609,558 |
|
|
| Science and Technology Growth |
|
|
| — |
|
|
|
| (20,716,461 | ) |
|
|
| 1,637,625 |
|
|
| Developing Markets Growth |
|
|
| 33,478 |
|
|
|
| (892,601 | ) |
|
|
| 5,323,633 |
|
|
|
|
| Undistributed net investment income and accumulated net realized gains (losses) from the Statements of Assets and Liabilities have been increased (decreased) by current permanent book-to-tax differences resulting in reclassifications as follows: |
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|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed Net |
| Accumulated |
| Additional | |||
| Mid Cap Growth |
|
| 71,694 |
|
| (10,629,914 | ) |
| 10,558,220 |
|
| International Growth |
|
| (2,930 | ) |
| 2,930 |
|
| — |
|
| Small Cap Growth |
|
| 1,500,439 |
|
| (47,818,057 | ) |
| 46,317,618 |
|
| Science and Technology Growth |
|
| 106,802 |
|
| — |
|
| (106,802 | ) |
| Developing Markets Growth |
|
| (239 | ) |
| 239 |
|
| — |
|
| Large Cap Growth |
|
| (7,539 | ) |
| 7,539 |
|
| — |
|
57
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| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
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|
|
| As of June 30, 2006, 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: |
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|
|
|
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|
|
|
|
|
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|
|
| Loss Carryover |
|
| Expiration Years | ||||
| Balanced |
|
| $ | 4,889,061 |
|
|
| 2010-2013 |
|
| Large Cap Growth |
|
| $ | 19,313,665 |
|
|
| 2010-2012 |
|
| Mid Cap Growth |
|
| $ | 26,411,586 |
|
|
| 2010-2012 |
|
| International Growth |
|
| $ | 33,066,574 |
|
|
| 2009-2015 |
|
| Small Cap Growth |
|
| $ | 44,998,219 |
|
|
| 2010-2012 |
|
| Science and Technology Growth |
|
| $ | 20,716,461 |
|
|
| 2010-2013 |
|
| Developing Markets Growth |
|
| $ | 892,601 |
|
|
| 2008-2015 |
|
|
|
| Distributions |
|
|
| An investor with 13% and 57% ownership in the Mid and Small Cap Growth Funds, respectively, took redemptions-in-kind out of the Funds in May 2006. The impact of these transactions for book purposes was for the Mid and Small Cap Growth Funds to realize $10,629,914 and $47,818,057 in gains, respectively. These gains were not actually realized by the Funds for tax purposes, but rather distributed to the redeeming shareholder as part of the redemptions-in-kind. |
|
|
| Concentration of Investments |
|
|
| Use of Estimates |
58
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| |
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| ||
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| |
| ||
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|
|
(2) | Investment Security Transactions |
|
|
| Purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended June 30, 2006, were as follow: |
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) | ||
| Balanced |
|
| 6,114,352 |
|
| 7,383,750 |
|
| Dividend Growth |
|
| 15,901,582 |
|
| 7,852,778 |
|
| Large Cap Growth |
|
| 40,982,930 |
|
| 17,760,572 |
|
| Mid Cap Growth |
|
| 65,739,684 |
|
| 114,653,353 |
|
| International Growth |
|
| 6,359,655 |
|
| 8,253,043 |
|
| Small Cap Growth |
|
| 110,346,573 |
|
| 228,062,531 |
|
| Science and Technology Growth |
|
| 4,462,471 |
|
| 7,047,226 |
|
| Developing Markets Growth |
|
| 3,613,609 |
|
| 4,302,822 |
|
|
|
(3) | Expenses |
|
|
| Investment Adviser |
|
|
|
|
|
|
|
|
|
|
|
|
| Contractural |
| Net of Adviser’s | ||
| Balanced |
|
| 1.00 | % |
| 1.00 | % |
| Dividend Growth Class I and Class S |
|
| 1.00 | % |
| 1.00 | % |
| Large Cap Growth |
|
| 1.00 | % |
| 1.00 | % |
| Mid Cap Growth |
|
| 1.25 | % |
| 1.15 | % |
| International Growth |
|
| 1.85 | % |
| 1.50 | % |
| Small Cap Growth |
|
| 1.50 | % |
| 1.50 | % |
| Science and Technology Growth |
|
| 1.50 | % |
| 1.35 | % |
| Developing Markets Growth |
|
| 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). |
|
|
| In addition to the annual 1.00% management fee, the Dividend Growth Fund Class S also has a 0.25% annual distribution (12b-1) fee, which is used to pay for distribution fees for the sale and distribution of its shares. |
59
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| Sit Mutual Funds |
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|
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| ||
| Notes to Financial Statements (continued) |
| ||
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| For the periods through December 31, 2006 the Adviser has agreed to limit the management fee of the Mid Cap Growth Fund, International Growth Fund, and Science and Technology Growth Fund, to 1.15%, 1.50%, and 1.35% of the Fund’s average daily net assets, respectively. |
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|
| 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 June 30, 2006: |
|
|
|
|
|
|
|
|
| Shares |
| |
| Balanced |
|
| 144,000 |
|
| Dividend Growth Fund |
|
| 624,000 |
|
| Large Cap Growth |
|
| 6,556,000 |
|
| Mid Cap Growth |
|
| 16,982,000 |
|
| International Growth |
|
| 923,000 |
|
| Small Cap Growth |
|
| 7,018,000 |
|
| Science and Technology Growth |
|
| 441,000 |
|
| Developing Markets Growth |
|
| 238,000 |
|
|
|
| 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 $314,410 were paid or payable to SKI for the year ended June 30, 2006. |
60
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| |
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| Transactions with affiliates |
|
|
|
|
|
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|
|
|
|
| Shares |
|
| % Shares | |
| Balanced |
|
| 229,281 |
|
| 29.9 |
|
| Dividend Growth |
|
| 535,041 |
|
| 27.1 |
|
| Large Cap Growth |
|
| 482,085 |
|
| 17.8 |
|
| Mid Cap Growth |
|
| 3,079,824 |
|
| 20.9 |
|
| International Growth |
|
| 780,654 |
|
| 34.8 |
|
| Small Cap Growth |
|
| 892,413 |
|
| 27.9 |
|
| Science and Technology Growth |
|
| 595,249 |
|
| 45.8 |
|
| Developing Markets Growth |
|
| 187,196 |
|
| 24.9 |
|
61
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| Sit Balanced Fund |
|
|
|
|
|
|
| |
|
| �� |
|
|
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|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| .28 |
|
| .26 |
|
| .21 |
|
| .29 |
|
| .36 |
|
Net realized and unrealized gains (losses) on investments |
|
| .59 |
|
| .73 |
|
| 1.34 |
|
| .22 |
|
| (3.01 | ) |
Total from operations |
|
| .87 |
|
| .99 |
|
| 1.55 |
|
| .51 |
|
| (2.65 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
| (.38 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.01 | ) |
Total distributions |
|
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
| (.39 | ) |
Net Asset Value: |
|
|
|
|
|
| �� |
|
|
|
|
|
|
|
|
|
End of period |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
| $ | 12.29 |
|
Total investment return (1) |
|
| 6.03 | % |
| 7.28 | % |
| 12.53 | % |
| 4.43 | % |
| (17.62 | %) |
Net assets at end of period (000’s omitted) |
| $ | 11,617 |
| $ | 12,251 |
| $ | 12,441 |
| $ | 16,065 |
| $ | 17,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income to average daily net assets |
|
| 1.84 | % |
| 1.84 | % |
| 1.58 | % |
| 2.54 | % |
| 2.52 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 50.00 | % |
| 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. |
62
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|
| |
| Sit Dividend Growth Fund Class I |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
| Six months |
| |
|
|
|
| Ended |
| |||||
|
| Years Ended June 30, |
| June 30, |
| |||||
|
| 2006 |
| 2005 |
| 2004 |
| |||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 11.18 |
| $ | 10.14 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .25 |
|
| .21 |
|
| .08 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.20 |
|
| 1.01 |
|
| .10 |
|
Total from operations |
|
| 1.45 |
|
| 1.22 |
|
| .18 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.23 | ) |
| (.18 | ) |
| (.04 | ) |
From net realized gains |
|
| (.14 | ) |
| — |
|
| — |
|
Total distributions |
|
| (.37 | ) |
| (.18 | ) |
| (.04 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
|
Total investment return (1) |
|
| 13.20 | % |
| 12.12 | % |
| 1.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 24,137 |
| $ | 14,196 |
| $ | 6,872 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 2.09 | % |
| 1.94 | % |
| 1.79 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 41.28 | % |
| 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.
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Dividend Growth Fund Class S |
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months |
| |
Net Asset Value: |
|
|
| |
Beginning of period |
| $ | 12.28 |
|
Operations: |
|
|
|
|
Net investment income (loss) (2) |
|
| .05 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.02 | ) |
Total from operations |
|
| .03 |
|
Distributions to Shareholders: |
|
|
|
|
From net investment income |
|
| (.05 | ) |
From net realized gains |
|
| — |
|
Total distributions |
|
| (.05 | ) |
Net Asset Value: |
|
|
|
|
End of period |
| $ | 12.26 |
|
Total investment return (1) |
|
| 0.27 | % |
Net assets at end of period (000’s omitted) |
| $ | 48 |
|
|
|
|
|
|
Ratios: |
|
|
|
|
Expenses to average daily net assets |
|
| 1.25 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 1.84 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 41.28 | % (4) |
|
|
(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. |
(4) | The turnover rate presented is for the entire fund, for the full fiscal year 2006. |
64
|
|
|
|
|
|
|
|
| |
| Sit Large Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| .17 |
|
| .16 |
|
| .01 |
|
| .02 |
|
| (.08 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 3.23 |
|
| 2.27 |
|
| 5.05 |
|
| .50 |
|
| (12.17 | ) |
Total from operations |
|
| 3.40 |
|
| 2.43 |
|
| 5.06 |
|
| .52 |
|
| (12.25 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.34 | ) |
Total distributions |
|
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
| (.34 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
| $ | 26.40 |
|
Total investment return (1) |
|
| 9.91 | % |
| 7.62 | % |
| 18.81 | % |
| 1.97 | % |
| (31.63 | %) |
Net assets at end of period (000’s omitted) |
| $ | 101,873 |
| $ | 69,660 |
| $ | 63,774 |
| $ | 59,324 |
| $ | 63,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income (loss) to average daily net asset |
|
| 0.46 | % |
| 0.49 | % |
| 0.02 | % |
| 0.08 | % |
| (0.25 | %) |
Portfolio turnover rate (excluding short-term securities) |
|
| 23.71 | % |
| 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. |
See accompanying notes to financial statements on page 54.
65
|
|
|
|
|
|
|
|
|
|
| Sit Mid Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| — |
|
| (.07 | ) |
| (.07 | ) |
| (.05 | ) |
| (.07 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 1.73 |
|
| 1.12 |
|
| 2.24 |
|
| .20 |
|
| (4.16 | ) |
Total from operations |
|
| 1.73 |
|
| 1.05 |
|
| 2.17 |
|
| .15 |
|
| (4.23 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.23 | ) |
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.23 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
| $ | 7.91 |
|
Total investment return (1) |
|
| 15.34 | % |
| 10.26 | % |
| 26.92 | % |
| 1.90 | % |
| (34.66 | %) |
Net assets at end of period (000’s omitted) |
| $ | 191,541 |
| $ | 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 |
|
| (0.03 | %) (2) |
| (0.66 | %) (2) |
| (0.71 | %) (2) |
| (0.73 | %) (2) |
| (0.79 | %) (2) |
Portfolio turnover rate (excluding short-term securities |
|
| 32.48 | % |
| 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) | Total Fund expenses are contractually limited to 1.25% of average daily net assets. However, during the years ended June 30, 2006, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.25% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have been (0.13%), (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. |
66
|
|
|
|
|
|
|
|
| |
| Sit International Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| .14 |
|
| .07 |
|
| .01 |
|
| .07 |
|
| (.03 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 3.10 |
|
| 1.03 |
|
| 1.92 |
|
| (1.47 | ) |
| (3.79 | ) |
Total from operations |
|
| 3.24 |
|
| 1.10 |
|
| 1.93 |
|
| (1.40 | ) |
| (3.82 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
| $ | 10.79 |
|
Total investment return (1) |
|
| 26.37 | % |
| 9.80 | % |
| 20.63 | % |
| (12.97 | %) |
| (26.15 | %) |
Net assets at end of period (000’s omitted) |
| $ | 34,700 |
| $ | 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 a |
|
| 0.95 | % (2) |
| 0.56 | % (2) |
| 0.14 | % (2) |
| 0.81 | % (2) |
| (0.22 | %) (2) |
Portfolio turnover rate (excluding short-term securities |
|
| 20.21 | % |
| 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) | Total Fund expenses are contractually limited to 1.85% of average daily net assets. However, during the years ended June 30, 2006, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.85% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have have been 0.60%, 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. |
See accompanying notes to financial statements on page 54.
67
|
|
|
|
|
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| (.23 | ) |
| (.27 | ) |
| (.27 | ) |
| (.18 | ) |
| (.24 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 5.95 |
|
| 2.72 |
|
| 3.92 |
|
| .76 |
|
| (7.65 | ) |
Total from operations |
|
| 5.72 |
|
| 2.45 |
|
| 3.65 |
|
| .58 |
|
| (7.89 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.04 | ) |
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.04 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
| $ | 21.06 |
|
Total investment return (1) |
|
| 20.62 | % |
| 9.69 | % |
| 16.87 | % |
| 2.75 | % |
| (27.24 | %) |
Net assets at end of period (000’s omitted) |
| $ | 106,977 |
| $ | 180,545 |
| $ | 199,810 |
| $ | 182,912 |
| $ | 180,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
Net investment income (loss) to average daily net assets |
|
| (0.67 | %) |
| (1.08 | %) |
| (1.10 | %) |
| (1.00 | %) |
| (0.99 | %) |
Portfolio turnover rate (excluding short-term securities) |
|
| 54.73 | % |
| 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. |
68
|
|
|
|
|
|
|
|
| |
| Sit Science and Technology Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2006 |
| 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) |
|
| (.08 | ) |
| (.09 | ) |
| (.11 | ) |
| (.07 | ) |
| (.12 | ) |
Net realized and unrealized gains (losses) on investments |
|
| .96 |
|
| (.79 | ) |
| 2.08 |
|
| .60 |
|
| (7.58 | ) |
Total from operations |
|
| .88 |
|
| (.88 | ) |
| 1.97 |
|
| .53 |
|
| (7.70 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (.01 | ) |
Total distributions |
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| — |
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| — |
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| — |
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| — |
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| (.01 | ) |
Net Asset Value: |
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End of period |
| $ | 10.02 |
| $ | 9.14 |
| $ | 10.02 |
| $ | 8.05 |
| $ | 7.52 |
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Total investment return (1) |
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| 9.63 | % |
| (8.78 | %) |
| 24.47 | % |
| 7.05 | % |
| (50.57 | %) |
Net assets at end of period (000’s omitted) |
| $ | 13,024 |
| $ | 14,542 |
| $ | 19,054 |
| $ | 15,200 |
| $ | 14,018 |
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Ratios: |
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Expenses to average daily net assets |
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| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
Net investment income (loss) to average net assets |
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| (0.73 | %) (2) |
| (0.99 | %) (2) |
| (1.20 | %) (2) |
| (1.05 | %) (2) |
| (1.06 | %) (2) |
Portfolio turnover rate (excluding short-term securities) |
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| 31.35 | % |
| 37.55 | % |
| 55.54 | % |
| 49.67 | % |
| 76.78 | % |
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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) | Total Fund expenses are contractually limited to 1.50% of average daily net assets. However, during the years ended June 30, 2006, 2005, 2004, 2003, and 2002, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. Had the Fund incurred these expenses, the ratio of expenses to average daily net assets would have been 1.50% for each of these periods and the ratio of net investment income (loss) to average daily net assets would have been (0.88%), (1.14%), (1.35%), (1.20%), and (1.21%), respectively. |
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(3) | The net investment income (loss) per share is based on average shares outstanding for the period. |
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See accompanying notes to financial statements on page 54. |
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| Sit Developing Markets Growth Fund |
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| Financial Highlights |
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| Years Ended June 30, |
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Net Asset Value: |
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Beginning of period |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
| $ | 8.10 |
| $ | 9.17 |
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Operations: |
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Net investment income (loss) (2) |
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| .04 |
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| .06 |
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| .04 |
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| .02 |
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| (.02 | ) |
Net realized and unrealized gains (losses) on investments |
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| 4.43 |
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| 3.04 |
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| 1.78 |
|
| — |
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| (1.05 | ) |
Total from operations |
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| 4.47 |
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| 3.10 |
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| 1.82 |
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| .02 |
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| (1.07 | ) |
Distributions to Shareholders: |
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From net investment income |
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| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
| — |
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| — |
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From net realized gains |
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| — |
|
| — |
|
| — |
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| — |
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| — |
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Total distributions |
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| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
| — |
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| — |
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Net Asset Value: |
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End of period |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
| $ | 8.10 |
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Total investment return (1) |
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| 34.47 | % |
| 31.32 | % |
| 22.48 | % |
| 0.25 | % |
| (11.66 | %) |
Net assets at end of period (000’s omitted) |
| $ | 13,057 |
| $ | 10,575 |
| $ | 8,030 |
| $ | 8,577 |
| $ | 11,250 |
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Ratios: |
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Expenses to average daily net assets |
|
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
Net investment income (loss) to average daily net assets |
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| 0.24 | % |
| 0.55 | % |
| 0.37 | % |
| 0.31 | % |
| (0.20 | %) |
Portfolio turnover rate (excluding short-term securities) |
|
| 27.38 | % |
| 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. |
See accompanying notes to financial statements on page 54.
70
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The Board of Directors and Shareholders |
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We have audited the accompanying statements of assets and liabilities, including the schedules of portfolios of investments, of Sit Balanced Fund (a series of Sit Mutual Funds, Inc.), Sit Dividend Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Large Cap Growth Fund, Inc., Sit Mid Cap Growth Fund, Inc., Sit International Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Small Cap Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Science and Technology Growth Fund (a series of Sit Mutual Funds, Inc.), and Sit Developing Markets Growth Fund (a series of Sit Mutual Funds, Inc.) as of June 30, 2006, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits. |
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We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2006, by correspondence with the custodian and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
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In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit Balanced Fund, Sit Dividend Growth Fund, Sit Large Cap Growth Fund, Sit Mid Cap Growth Fund, Sit International Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and Sit Developing Markets Growth Fund as of June 30, 2006 and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles. |
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KPMG LLP |
71
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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 (including distribution fees with respect to Dividend Growth Fund Class S shares). This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2006 to June 30, 2006.
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 | $1,002.50 | $4.94 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
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Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,064.20 | $5.09 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
72
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Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,012.40 | $4.96 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
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Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,019.60 | $5.73 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.25 | $5.73 |
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International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1.075.00 | $7.67 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.46 |
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Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,056.20 | $7.61 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.46 |
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Science and Technology Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $948.90 | $6.49 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.25 | $6.72 |
73
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| Expense Example (Continued) |
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Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,085.60 | $10.29 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.00 | $9.94 |
74
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The Sit Mutual Funds are a family of 13 no-load mutual funds. The eight Stock Funds described in this Stock Funds Annual Report are the Sit Mid Cap Growth Fund, Sit Large Cap Growth Fund, Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and the Sit Dividend Growth Fund (the “Funds” or individually, a “Fund”). The five bond funds within the Sit Mutual Fund family are described in a Bond Funds Annual Report. The Sit Mid Cap Growth Fund and Sit Large Cap Growth Fund, and the corporate issuer of the Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and Sit Dividend Growth Fund have a Board of Directors and officers. Pursuant to Minnesota law, the Boards of Directors are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day- to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below. The business address, unless otherwise noted below, is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The Stock Funds’ SAI has additional information about the fund’s directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
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Name, Address | Position(s) | Term of | Principal Occupation(s) | Number of | Other Directorships Held |
INTERESTED DIRECTORS: | |||||
Eugene C. Sit(2) | Director and Chairman | Director since inception. | Chairman, CEO and CIO of Sit Investment Associates, Inc. (the “Adviser”); and Sit/ Kim International Investment Associates, Inc. (“Sit/Kim”); Director of SIA Securities Corp. (the “Distributor”); and Chairman and CEO of Sit Investment Fixed Income Advisors, Inc. (“SF”) | 13 | Corning Incorporated; Smurfit Stone Container Corporation. |
William E. Frenzel(2) | Director | Director since 1991 or the Fund’s inception if later. | Guest Scholar at the Brookings Institution and member of several government policy committees, foundations and organizations. Advisory Director of the Adviser; Director of Sit/Kim and SF. | 13 | None |
INDEPENDENT DIRECTORS: | |||||
Sidney L. Jones | Director | Director from 1988 to 1989 and from 1993 or the Fund’s inception if later. | Lecturer, Washington Campus Corsortium of 17 Universities; Senior Advisor to Lawrence and Company, Toronto, Canada. | 13 | None |
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| Information about Directors and Officers (Continued) |
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Name, Address | Position(s) | Term of | Principal Occupation(s) | Number of | Other Directorships Held |
Bruce C. Lueck | Director | Director since 2004 or the Fund’s inception if later. | Consultant for Zephyr Management, L.P. (investment management) and committee member of several investment funds and foundations. President & Chief Investment Officer, Okabena Investment Services, Inc. from 1985 to 2003; Board Member, Okabena Company from 1985 to 2003. | 13 | None |
John P. Fagan | Director | Elected as Director at February 19, 2006 Board Meeting. | Honorary member on Board of St. Joseph’s College in Rensselaer, Indiana | 13 | None |
Donald Phillips | Director | Director of the International Fund since 1993 and since 1990 or the Fund’s inception if later for all other Funds. | Chairman and CEO of WP Global Partners Inc., 7/05 to present; CEO and CIO of WestLB Asset Management (USA) LLC, 4/00 to 4/05. | 13 | None |
Melvin C. Bahle | Director | Director since 2005; Director Emeritus 1995-2005; Director since inception until 1995. | Director and/or officer of several foundations and charitable organizations. | 13 | None |
OFFICERS: | |||||
Peter L. Mitchelson | Vice Chairman | Re-Elected by the Boards annually; Officer since inception. | Director and Vice Chairman of the Adviser; Director and Executive Vice President of Sit/Kim; Director of the Distributor; and Vice Chairman of SF. Director of the it Funds through 4/30/02. | N/A | N/A |
Roger J. Sit(3) | Executive Vice President | Re-Elected by the Boards annually; Officer since 1998 | Director and President of the Adviser; Director, President, COO, and Deputy CIO of Sit/Kim. | N/A | N/A |
Kent L. Johnson | Vice President - Investments | Re-Elected by the Boards annually; Officer since 2003. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
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Name, Address, | Position(s) | Term of Office (1) | Principal Occupation(s) | Number of | Other Directorships Held |
Ronald D. Sit(3) | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1985. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Robert W. Sit(3) | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1997. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Bryce A. Doty | Vice President - Investments | Re-Elected by the Boards annually; Officer since 1996. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Paul E. Rasmussen | Vice President and Treasurer | Re-Elected by the Boards annually; Officer since 1994. | Vice President, Secretary, Controller and Chief Compliance Officer of the Adviser; Vice Presient, Secretary, and Chief Compliance Officer of Sit/Kim and SF; President and Treasurer of the Distributor. | N/A | N/A |
Michael J. Radmer | Secretary | Re-Elected by the Boards annually; Officer since 1984. | Partner of the Funds’ general counsel, Dorsey & Whitney, LLP. | N/A | N/A |
Carla J. Rose | Vice President, Assistant Secretary & Assistant Treasurer | Re-Elected by the Boards annually; Officer since 2000. | Vice President, Administration & Deputy Controller of the Adviser; Vice President, Administration and Controller of Sit/Kim; Controller and Treasurer of SF. | N/A | N/A |
Kelly K. Boston | Assistant Secretary & Assistant Treasurer | Re-Elected by the Boards annually; Officer since 2000. | Staff Attorney of the Adviser. | N/A | N/A |
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(1) | Each Director serves until his resignation, removal or the next meeting of the shareholders at which election of directors is an agenda item and until his successor is duly elected and shall qualify. |
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(2) | Directors who are deemed to be an “interested person” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Sit is considered an “interested person” because he is an officer of Sit Investment Associates, Inc., the Fund’s investment adviser. Mr. Frenzel is deemed to be an interested person because he is an advisory director and shareholder of the Fund’s investment adviser. |
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(3) | Mr. Roger Sit, Mr. Ronald Sit, and Mr. Robert Sit are sons of Eugene C. Sit. |
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(4) | Includes only directorships of companies required to report under the Securities Exchange Act of 1934 (i.e. public companies) or other investment companies registered under the 1940 Act. |
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We are required by Federal tax regulations to provide shareholders with certain information regarding dividend distributions on an annual fiscal year basis. The figures are for informational purposes only and should not be used for reporting to federal or state revenue agencies. All necessary tax information will be mailed in January each year.
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| Ordinary |
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Fund and Payable Date |
| Income (a) |
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Balanced Fund |
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October 7, 2005 |
| $ | 0.05925 |
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December 15, 2005 |
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| 0.06234 |
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April 7, 2006 |
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| 0.07890 |
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July 7, 2006 |
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| 0.08083 |
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| $ | 0.28132 | (b) |
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Dividend Growth Fund (Class I) |
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October 7, 2005 |
| $ | 0.06668 |
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December 15, 2005 |
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| 0.07011 |
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April 7, 2006 |
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| 0.05295 |
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July 7, 2006 |
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| 0.05671 |
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| $ | 0.24645 | (c) |
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Dividend Growth Fund (Class S) |
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October 7, 2005 |
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| N/A |
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December 15, 2005 |
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| N/A |
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April 7, 2006 |
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| 0.05295 |
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July 7, 2006 |
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| 0.05119 |
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| $ | 0.10414 | (c) |
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Large Cap Growth Fund |
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December 15, 2005 |
| $ | 0.06785 | (d) |
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Developing Markets Growth Fund |
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December 15, 2005 |
| $ | 0.05498 | (e) |
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International Growth Fund |
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December 15, 2005 |
| $ | 0.07062 | (e) |
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(a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
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(b) | Taxable as ordinary income, 44.63% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 53.66% qualifying for dividends-received deduction by corporations. |
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(c) | Taxable as ordinary income, 100.00% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 100.00% qualifying for dividends-received deduction by corporations. |
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(d) | Taxable as ordinary income, 100.00% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 100.00% qualifying for dividends-received deduction by corporations. |
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(e) | Taxable as ordinary income, 100.00% qualifying for reduced dividend income tax rate for individuals. |
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PROXY VOTING
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.
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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 $6.6 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of thirteen no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
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Sit Mutual Funds offer: | ||
| • | Free telephone exchange |
| • | Dollar-cost averaging through an automatic investment plan |
| • | Electronic transfer for purchases and redemptions |
| • | Free checkwriting privileges on Bond Funds |
| • | Retirement accounts including IRAs and 401(k) plans |
80
A N N U A L R E P O R T S T O C K F U N D S
Year Ended June 30, 2006
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INVESTMENT ADVISER | AUDITORS |
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
Audit Fees (a) | Audit Related Fees (b) | Tax Fees (c) | Other Fees (d) | ||||||
---|---|---|---|---|---|---|---|---|---|
Fiscal year ended June 30, 2006 | 21,600 | 0 | 3,860 | 0 | |||||
Fiscal year ended June 30, 2005 | 21,000 | 0 | 3,750 | 0 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mid Cap Growth Fund, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date August 30, 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 August 30, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date August 30, 2006
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
Audit Fees (a) | Audit Related Fees (b) | Tax Fees (c) | Other Fees (d) | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fiscal year ended June 30, 2006 | 18,500 | 0 | 3,860 | 0 | ||||||||||
Fiscal year ended June 30, 2005 | 18,000 | 0 | 3,750 | 0 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000.00 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Large Cap Growth Fund, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date August 30, 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 August 30, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date August 30, 2006
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
2006 | 2005 | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Audit Fees | Audit Related | Tax Fees | Other Fees | Audit Fees | Audit Related | Tax Fees | Other Fees | |||||||||||||||||||
Fiscal year ended June 30 | ||||||||||||||||||||||||||
Sit Mutual Funds, Inc. | ||||||||||||||||||||||||||
Sit International Growth Fund (series A) | 20,400 | 0 | 3,860 | 0 | 19,900 | 0 | 3,750 | 0 | ||||||||||||||||||
Sit Balanced Fund (series B) | 13,800 | 0 | 3,860 | 0 | 13,400 | 0 | 3,750 | 0 | ||||||||||||||||||
Sit Developing Markets Growth Fund (series C) | 13,300 | 0 | 3,860 | 0 | 12,900 | 0 | 3,750 | 0 | ||||||||||||||||||
Sit Small Cap Growth Fund (series D) | 16,400 | 0 | 3,860 | 0 | 15,900 | 0 | 3,750 | 0 | ||||||||||||||||||
Sit Science and Technology Growth Fund (series E) | 13,800 | 0 | 3,860 | 0 | 13,400 | 0 | 3,750 | 0 | ||||||||||||||||||
Sit Dividend Growth Fund (series G) | 13,200 | 0 | 3,860 | 0 | 12,800 | 0 | 3,750 | 0 | ||||||||||||||||||
Total Mutual Funds, Inc. | 90,900 | 0 | 23,160 | 0 | 88,300 | 0 | 22,500 | 0 |
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $121,000 and $114,400, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002). |
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mutual Funds, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
Paul E. Rasmussen Vice President, Treasurer |
Date August 30, 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 August 30, 2006
By (Signature and Title) | /s/ Eugene C. Sit |
Eugene C. Sit Chairman |
Date August 30, 2006