UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03343
Sit Large Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: December 31, 2006
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03342
Sit Mid Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: December 31, 2006
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: December 31, 2006
Item 1: Reports to Stockholders.
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Sit Mutual Funds
Six Months Ended December 31, 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 SEMI-ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments | ||||
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| Sit Mutual Funds |
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| Six Months Ended December 31, 2006 |
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Dear Fellow Shareholders:
Despite a shaky beginning, 2006 turned out to be a strong year for global equity markets. The surge in U.S. stock prices during the second half of the year was propelled by impressive corporate earnings, low interest rates and ample financial liquidity. Importantly, we believe fundamentals support higher equity prices in the year ahead.
Economic Overview
Despite a substantial correction in the U.S. housing sector and a related slowdown in consumer spending, the domestic economy turned in respectable performance in 2006. To be sure, Gross Domestic Product (GDP) growth decelerated in the second half of the year, and we project this moderation in activity to persist in 2007. Clearly, the ongoing housing correction poses risks to the economy in the year ahead. Recent economic activity, however, has been encouraging, and we believe that the odds favor a “soft landing,” similar to the experience of 1995-1996. Consumer spending continues to be buoyed by a healthy job market, recently highlighted by a surprisingly strong employment report for the month of December. Furthermore, business capital spending trends also remain strong, and relatively high capacity utilization rates point to continued growth in 2007. And finally, given the strength in many economic regions outside the U.S, a weaker U.S. dollar should result in a higher level of export activity. With these factors in mind, our projections call for U.S. GDP growth of +2.8% in 2007 versus +3.3% in 2006.
Inflation trends are likely to improve over the next several months, with the recent sharp drop in energy costs creating easy year-over-year comparisons. Lower energy prices, combined with a moderating U.S. economy, are key factors behind our projected +2.2% gain in the consumer price index (CPI) in 2007, roughly a full percentage point lower than in 2006. The prospect of lower inflation was a key factor behind the pause in interest rate increases by the Federal Reserve, since its June 28 - 29 FOMC meeting. The Fed had increased rates seventeen times in prior
meetings. We believe that the combination of moderating economic growth and subdued inflation trends may lead to a reduction in federal funds rate, perhaps during the second half of 2007.
In terms of fiscal policy, as a result of the political changes brought on by the November elections, it will clearly be an active time in Washington D.C. The Democrats’ new influence was seen on January 5th, as the House passed a “pay-as-you-go” budget mechanism, which requires new spending or tax cuts to be offset by increased revenue or other spending cuts. Another agenda item that is likely to pass based on public support, is an increase in the minimum wage by approximately 40% over the next two years. Health care is a much broader issue to be addressed, with provisions that may give government the power to negotiate Medicare drug prices. Democrats will also look to reduce oil industry subsidies as a funding source for conservation and alternative energy initiatives. While many of these issues are highly contentious and may well result in gridlock, we are carefully monitoring developments and the potential impact on specific sectors and companies.
Equity Strategy Summary
After struggling in the mid-year, stocks surged ahead during the second half of 2006, and the S&P 500 Index rose to a six-year high and the Dow Jones Industrial Average set a new record. Key factors contributing to the enthusiasm for stocks include a sharp decline in energy prices, a pause in the Federal Reserve’s string of interest rate increases, and continued strength in corporate profits.
We believe that several factors support another good year for stocks in the year ahead. First, we project solid corporate earnings growth of +5% to 10% in 2007, which is a deceleration from last year but still strong enough to support stock prices. Second, stocks remain attractively valued, and we see potential for stable or even modestly higher market price-earnings (P/E) ratios. This is because a slower economy, including the possibility of a Federal
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Reserve rate reduction, should lead to stable (or modestly lower) interest rates which, in turn, historically has led investors to assign higher valuations to stocks. Third, ample financial liquidity will continue to support stock prices. Cash on corporate balance sheets is at or near an all-time record, private equity funds have raised massive pools of capital, and debt costs remain very low. All of this should lead to another booming year for mergers and acquisitions in 2007, although stresses from this flurry of activity are likely to emerge at some point.
Although the gains in equities were broad-based in 2006, both small cap and value indices, in particular, posted another year of exceptional returns. Looking ahead, however, we believe a strong case can be made for a change in market leadership, including a sustained period of growth stock outperformance. There are two key reasons for this view. First, based on Frank Russell Company indices, valuations for growth stocks relative to value issues are well below historical norms across each capitalization style. Second, the growth style has historically performed well in slower growth economic environments, as many growth companies are less reliant on the overall economy to sustain profit growth. Consistent with this view, the Sit domestic equity funds remain overweighted in sectors expected to post above-average earnings growth over the near-to intermediate-term, including technology and health care-related industries. In addition, based on our expectation for faster economic growth outside the U.S., we are also emphasizing companies with strong operations in overseas markets. Although we continue to believe in the long-term attractiveness of the energy sector, we have trimmed our longstanding overweight in the sector based on near-term headwinds for commodity prices. Underweighted sectors remain consumer durables, commercial services, utilities and finance.
Our optimism for U.S. stocks extends to international markets as well, largely based on similar positive trends in most regions of the world, including solid economic growth
with moderate inflation, attractive valuations and financial liquidity. While a slowdown in the U.S. economy may weigh on the global markets over the next several months, we believe the growth drivers of emerging economies, such as China, India and Eastern Europe, will serve to offset this risk. In this regard, we remain overweighted in the Asian region, with a particular focus on countries and individual companies benefiting from China’s rapid economic growth. While we have retained our underweighted position in the European region, we have modestly added to positions based on attractive valuations and signs that political and economic reforms are slowly taking hold.
With best wishes,
Eugene C. Sit, CFA
Chairman and Chief Investment Officer
3
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| Sit Mutual Funds |
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| Six Months Ended December 31, 2006 |
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SIT EQUITY FUNDS |
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| 3-Month |
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Balanced SIBAX |
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| 4.76 | % |
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S&P 500 Index |
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| 6.70 |
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Lehman Aggregate Bond Index |
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| 1.24 |
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Dividend Growth Class I SDVGX |
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| 5.89 |
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S&P 500 Index |
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| 6.70 |
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Dividend Growth Class S SDVSX |
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| 5.83 |
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S&P 500 Index |
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| 6.70 |
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Large Cap Growth SNIGX |
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| 6.25 |
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Russell 1000® Growth Index(1) |
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| 5.93 |
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Mid Cap Growth(2) NBNGX |
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| 7.70 |
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Russell MidCap® Growth Index(3) |
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| 6.94 |
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International Growth(4) SNGRX |
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| 8.40 |
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MSCI EAFE Growth Index(5) |
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| 9.40 |
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Small Cap Growth(2) SSMGX |
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| 7.31 |
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Russell 2000® Growth Index(6) |
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| 8.76 |
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Science & Technology Growth(7) SISTX |
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| 6.12 |
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NYSE Arca Tech 100 Index |
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| 5.63 |
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Developing Markets Growth(4) SDMGX |
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| 15.50 |
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MSCI Emerging Markets Index(6) |
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| 17.28 |
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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 MidCap 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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| 7.62 | % |
| 7.88 | % |
| 8.20 | % |
| 4.21 | % |
| 6.09 | % |
| 7.67 | % |
| 12/31/93 |
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| 12.74 |
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| 15.80 |
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| 10.44 |
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| 6.19 |
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| 8.42 |
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| 10.91 |
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| 5.09 |
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| 4.33 |
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| 3.70 |
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| 5.06 |
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| 6.24 |
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| 6.18 |
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| 11.15 |
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| 18.29 |
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| 12.79 |
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| — |
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| — |
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| 12.79 |
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| 12/31/03 |
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| 12.74 |
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| 15.80 |
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| 10.44 |
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| — |
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| — |
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| 10.44 |
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| 10.95 |
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| — |
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| 3/31/06 |
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| 12.74 |
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| — |
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| — |
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| 8.20 |
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| 9.54 |
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| 10.63 |
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| 3.50 |
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| 5.43 |
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| 11.06 |
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| 9/2/82 |
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| 10.10 |
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| 9.08 |
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| 6.87 |
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| 2.69 |
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| 5.44 |
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| 11.94 |
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| 7.46 |
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| 9.56 |
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| 13.90 |
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| 5.99 |
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| 6.22 |
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| 13.65 |
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| 9/2/82 |
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| 7.89 |
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| 10.65 |
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| 12.72 |
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| 8.21 |
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| 8.61 |
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| 9.94 |
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| 18.19 |
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| 15.25 |
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| 6.69 |
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| 2.43 |
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| 5.82 |
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| 11/1/91 |
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| 11.93 |
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| 22.33 |
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| 17.18 |
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| 12.27 |
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| 5.07 |
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| 5.27 |
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| 2.24 |
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| 7.99 |
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| 10.98 |
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| 6.30 |
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| 9.02 |
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| 13.02 |
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| 7/1/94 |
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| 6.85 |
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| 13.34 |
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| 10.50 |
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| 6.93 |
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| 4.88 |
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| 7.76 |
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| 7.29 |
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| 1.80 |
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| 4.32 |
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| -2.45 |
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| — |
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| 1.16 |
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| 12/31/97 |
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| 11.65 |
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| 4.68 |
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| 7.88 |
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| 4.96 |
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| — |
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| 13.03 |
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| 21.22 |
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| 31.59 |
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| 27.06 |
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| 19.57 |
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| 6.91 |
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| 6.29 |
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| 7/1/94 |
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| 22.09 |
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| 29.18 |
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| 27.26 |
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| 23.52 |
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| 6.72 |
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| 5.28 |
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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 | ||||
| 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 MidCap® 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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| NYSE Arca 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) | The Dividend Growth Fund offers its shares in two classes: Class I shares, as shown above, and Class S shares, which have been offered since March 31, 2006. Class S shares, therefore, do not yet have annualized return information available. 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 |
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| 2001 |
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| 2002 |
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| 2003 |
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| 2004 |
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| 2005 |
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| 2006 |
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Balanced |
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| -4.80 | % |
| -12.99 | % |
| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| 7.88 | % |
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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| 15.80 |
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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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| 4.33 |
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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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| 18.29 |
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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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| 15.80 |
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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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| 9.54 |
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Russell 1000® Growth Index |
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| -22.43 |
|
| -20.42 |
|
| -27.89 |
|
| 29.76 |
|
| 6.30 |
|
| 5.27 |
|
| 9.08 |
|
|
|
|
|
|
|
|
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|
Mid Cap Growth(3) |
|
| -4.35 |
|
| -33.39 |
|
| -34.64 |
|
| 38.51 |
|
| 17.02 |
|
| 15.27 |
|
| 9.56 |
|
Russell MidCap® Growth Index |
|
| -11.75 |
|
| -20.15 |
|
| -27.41 |
|
| 42.71 |
|
| 15.48 |
|
| 12.10 |
|
| 10.65 |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
International Growth(4) |
|
| -26.66 |
|
| -33.26 |
|
| -29.84 |
|
| 28.70 |
|
| 12.97 |
|
| 14.67 |
|
| 18.19 |
|
MSCI EAFE Growth Index |
|
| -24.51 |
|
| -24.58 |
|
| -16.02 |
|
| 31.99 |
|
| 16.12 |
|
| 13.28 |
|
| 22.33 |
|
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|
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|
|
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|
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|
|
|
|
|
|
Small Cap Growth(3) |
|
| 6.25 |
|
| -28.19 |
|
| -26.22 |
|
| 34.57 |
|
| 6.79 |
|
| 18.52 |
|
| 7.99 |
|
Russell 2000® Growth Index |
|
| -22.44 |
|
| -9.24 |
|
| -30.27 |
|
| 48.53 |
|
| 14.31 |
|
| 4.15 |
|
| 13.34 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
Science & Technology Growth(5) |
|
| -6.55 |
|
| -47.78 |
|
| -44.45 |
|
| 40.09 |
|
| 7.39 |
|
| 3.83 |
|
| 1.80 |
|
NYSE Arca Tech 100 Index |
|
| -16.22 |
|
| -15.59 |
|
| -33.33 |
|
| 52.14 |
|
| 11.73 |
|
| 7.36 |
|
| 4.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developing Markets Growth(4) |
|
| -30.18 |
|
| -12.01 |
|
| -18.37 |
|
| 45.96 |
|
| 16.54 |
|
| 33.77 |
|
| 31.59 |
|
MSCI Emerging Markets Index |
|
| -31.80 |
|
| -4.91 |
|
| -7.97 |
|
| 51.59 |
|
| 22.45 |
|
| 30.31 |
|
| 29.18 |
|
|
|
(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 |
|
|
|
| Average Annual Total Returns for Periods Ended December 31, 2006 |
|
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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, 2006. 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 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Return Before Taxes |
| 7.9 | % |
| 4.2 | % |
| 6.1 | % | |
|
| Return After Taxes on Distributions |
| 7.2 | % |
| 3.6 | % |
| 4.9 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 6.4 | % |
| 3.2 | % |
| 4.6 | % | |
|
| Lehman Aggregate Bond Index |
| 4.3 | % |
| 5.1 | % |
| 6.2 | % | |
|
| S&P 500 Index |
| 15.8 | % |
| 6.2 | % |
| 8.4 | % |
|
|
|
|
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|
|
|
|
|
|
|
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|
| Sit Dividend Growth Fund (1) |
| 1 Year |
| 5 Years |
| Since Inception* |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Return Before Taxes - Class I |
| 18.3 | % |
| n/a |
|
| 12.8 | % | |
|
| Return After Taxes on Distributions |
| 17.7 | % |
| n/a |
|
| 12.3 | % | |
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 15.5 | % |
| n/a |
|
| 10.9 | % | |
S&P 500 Index | 15.8 | % | n/a | 10.4 | % |
|
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|
| Sit Large Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 9.5 | % |
| 3.5 | % |
| 5.4 | % |
|
|
| Return After Taxes on Distributions |
| 9.4 | % |
| 3.5 | % |
| 4.7 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 8.1 | % |
| 3.0 | % |
| 4.6 | % |
|
| Russell 1000® Growth Index |
| 9.1 | % |
| 2.7 | % |
| 5.4 | % |
|
8
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| |
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| Sit Mid Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 9.6 | % |
| 6.0 | % |
| 6.2 | % |
|
|
| Return After Taxes on Distributions |
| 9.6 | % |
| 6.0 | % |
| 5.0 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 8.1 | % |
| 5.2 | % |
| 5.1 | % |
|
|
| Russell Mid Cap® Growth Index |
| 10.7 | % |
| 8.2 | % |
| 12.1 | % |
|
|
|
|
|
|
|
|
|
|
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|
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|
| Sit International Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 18.2 | % |
| 6.7 | % |
| 2.4 | % |
|
|
| Return After Taxes on Distributions |
| 18.0 | % |
| 6.6 | % |
| 2.0 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 15.5 | % |
| 5.8 | % |
| 2.0 | % |
|
|
| MSCI EAFE Growth Index |
| 22.3 | % |
| 12.3 | % |
| 5.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Small Cap Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 8.0 | % |
| 6.3 | % |
| 9.0 | % |
|
|
| Return After Taxes on Distributions |
| 8.0 | % |
| 6.3 | % |
| 8.5 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 6.8 | % |
| 5.4 | % |
| 7.7 | % |
|
|
| Russell 2000® Growth Index |
| 13.3 | % |
| 6.9 | % |
| 4.9 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Science and Technology Growth Fund |
| 1 Year |
| 5 Years |
| Since Inception* |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 1.8 | % |
| -2.5 | % |
| 1.2 | % |
|
|
| Return After Taxes on Distributions |
| 1.8 | % |
| -2.5 | % |
| 1.1 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 1.5 | % |
| -2.1 | % |
| 1.0 | % |
|
|
| NYSE Arca Tech 100 Index |
| 4.7 | % |
| 5.0 | % |
| 13.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
| 1 Year |
| 5 Years |
| 10 Years |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return Before Taxes |
| 31.6 | % |
| 19.6 | % |
| 6.9 | % |
|
|
| Return After Taxes on Distributions |
| 31.5 | % |
| 19.5 | % |
| 6.9 | % |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares |
| 26.9 | % |
| 17.4 | % |
| 6.1 | % |
|
|
| MSCI Emerging Markets Index |
| 29.2 | % |
| 23.5 | % |
| 6.7 | % |
|
|
|
|
(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. |
9
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| |
| Six Months Ended December 31, 2006 |
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|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, and Bryce A. Doty |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/06: |
| $16.02 Per Share |
6/30/06: |
| $15.14 Per Share |
|
|
|
Total Net Assets: |
| $12.0 Million |
|
PORTFOLIO STRUCTURE |
10
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| |
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| ||
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| ||
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| |||||
AVERAGE ANNUAL TOTAL |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Balanced |
| S&P 500 |
| Lehman |
| |||||||
3 Month** |
|
| 4.76 | % |
|
| 6.70 | % |
|
| 1.24 | % | ||
6 Month** |
|
| 7.62 |
|
|
| 12.74 |
|
|
| 5.09 |
| ||
1 Year |
|
| 7.88 |
|
|
| 15.80 |
|
|
| 4.33 |
| ||
5 Year |
|
| 4.21 |
|
|
| 6.19 |
|
|
| 5.06 |
| ||
10 Year |
|
| 6.09 |
|
|
| 8.42 |
|
|
| 6.24 |
| ||
Inception |
|
| 7.67 |
|
|
| 10.91 |
|
|
| 6.18 |
| ||
(12/31/93) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
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|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||||
1 Year |
|
| 7.88 | % |
|
| 15.80 | % |
|
| 4.33 | % | ||
5 Year |
|
| 22.92 |
|
|
| 35.02 |
|
|
| 27.98 |
| ||
10 Year |
|
| 80.64 |
|
|
| 124.44 |
|
|
| 83.13 |
| ||
Inception |
|
| 161.52 |
|
|
| 284.70 |
|
|
| 118.28 |
| ||
(12/31/93) |
|
|
|
|
|
|
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|
|
| ||
|
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|
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|
|
|
|
|
|
|
| ||
*As of 12/31/06. | **Not annualized. | |||||||||||||
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. | |
| |
(1) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
(2) | An unmanaged index which measures the performance of approximately 6,000 publicly traded bonds with an approximate average maturity of 10 years. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/96 and held until 12/31/06 would have grown to $18,064 in the Fund, $22,444 in the S&P 500 Index or $18,313 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | 1. | General Electric Co. |
| 2. | Microsoft Corp. |
| 3. | Cisco Systems, Inc. |
| 4. | Citigroup, Inc. |
| 5. | Schlumberger, Ltd. |
Bonds | 1. | Freddie Mac, 8.00%, 7/1/32 |
| 2. | American Strategic, Inc. Portfolio II |
| 3. | U.S. Treasury Bond, 4.50%, 11/30/11 |
| 4. | American Strategic, Inc. Portfolio III |
| 5. | Proctor & Gamble ESOP, 9.36%, 1/1/21 |
|
| Total Number of Holdings: 162 |
11
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
| ||
Common Stocks (64.2%) (2) |
|
|
|
| ||
Communications (2.1%) |
|
|
|
| ||
4,500 |
| Crown Castle Intl. Corp. (3) |
|
| 145,350 |
|
400 |
| NII Holdings, Inc. (3) |
|
| 25,776 |
|
3,100 |
| Vodafone Group, A.D.R. |
|
| 86,118 |
|
|
|
|
|
| ||
|
|
|
|
| 257,244 |
|
|
|
|
|
| ||
Consumer Non-Durables (3.2%) |
|
|
|
| ||
1,300 |
| Colgate-Palmolive Co. |
|
| 84,812 |
|
2,600 |
| PepsiCo, Inc. |
|
| 162,630 |
|
2,100 |
| The Procter & Gamble Co. |
|
| 134,967 |
|
|
|
|
|
| ||
|
|
|
|
| 382,409 |
|
|
|
|
|
| ||
Consumer Services (3.9%) |
|
|
|
| ||
3,000 |
| Comcast Corp. (3) |
|
| 126,990 |
|
1,400 |
| Harrah’s Entertainment, Inc. |
|
| 115,808 |
|
2,100 |
| Marriott International, Inc. |
|
| 100,212 |
|
3,000 |
| News Corp. |
|
| 64,440 |
|
1,600 |
| Starbucks Corp. (3) |
|
| 56,672 |
|
|
|
|
|
| ||
|
|
|
|
| 464,122 |
|
|
|
|
|
| ||
Electronic Technology (6.8%) |
|
|
|
| ||
2,000 |
| Analog Devices, Inc. |
|
| 65,740 |
|
300 |
| Apple Computer, Inc. (3) |
|
| 25,452 |
|
7,700 |
| Cisco Systems, Inc. (3) |
|
| 210,441 |
|
5,700 |
| EMC Corp. (3) |
|
| 75,240 |
|
1,500 |
| Hewlett-Packard Co. |
|
| 61,785 |
|
3,800 |
| Intel Corp. |
|
| 76,950 |
|
2,900 |
| Motorola, Inc. |
|
| 59,624 |
|
5,100 |
| Nokia Corp., A.D.R. |
|
| 103,632 |
|
2,900 |
| Qualcomm, Inc. |
|
| 109,591 |
|
1,000 |
| Texas Instruments, Inc. |
|
| 28,800 |
|
|
|
|
|
| ||
|
|
|
|
| 817,255 |
|
|
|
|
|
| ||
Energy Minerals (5.2%) |
|
|
|
| ||
1,300 |
| Murphy Oil Corp. |
|
| 66,105 |
|
3,000 |
| Occidental Petroleum Corp. |
|
| 146,490 |
|
2,500 |
| Southwestern Energy Co. (3) |
|
| 87,625 |
|
1,400 |
| Suncor Energy, Inc. |
|
| 110,474 |
|
900 |
| Ultra Petroleum Corp. (3) |
|
| 42,975 |
|
1,200 |
| Valero Energy Corp. |
|
| 61,392 |
|
2,433 |
| XTO Energy, Inc. |
|
| 114,473 |
|
|
|
|
|
| ||
|
|
|
|
| 629,534 |
|
|
|
|
|
| ||
Finance (9.8%) |
|
|
|
| ||
1,600 |
| American Express Co. |
|
| 97,072 |
|
2,021 |
| American International Group, Inc. |
|
| 144,825 |
|
3,766 |
| Citigroup, Inc. |
|
| 209,766 |
|
1,500 |
| Franklin Resources, Inc. |
|
| 165,255 |
|
800 |
| Goldman Sachs Group, Inc. |
|
| 159,480 |
|
3,000 |
| JPMorgan Chase & Co. |
|
| 144,900 |
|
500 |
| Mellon Financial Corp. |
|
| 21,075 |
|
1,000 |
| Prudential Financial, Inc. |
|
| 85,860 |
|
4,000 |
| Wells Fargo Co. |
|
| 142,240 |
|
|
|
|
|
| ||
|
|
|
|
| 1,170,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
| |||
Health Services (1.5%) |
|
|
|
| ||
1,700 |
| UnitedHealth Group, Inc. |
|
| 91,341 |
|
1,000 |
| WellPoint, Inc. (3) |
|
| 78,690 |
|
|
|
|
|
| ||
|
|
|
|
| 170,031 |
|
|
|
|
|
| ||
Health Technology (7.0%) |
|
|
|
| ||
1,600 |
| Abbott Laboratories |
|
| 77,936 |
|
1,100 |
| Amgen, Inc. (3) |
|
| 75,141 |
|
2,500 |
| Celgene Corp. (3) |
|
| 143,825 |
|
1,400 |
| Eli Lilly and Co. |
|
| 72,940 |
|
1,900 |
| Genentech, Inc. (3) |
|
| 154,147 |
|
1,300 |
| Gilead Sciences, Inc. (3) |
|
| 84,409 |
|
1,100 |
| Johnson & Johnson |
|
| 72,622 |
|
3,455 |
| Pfizer, Inc. |
|
| 89,485 |
|
1,200 |
| St. Jude Medical, Inc. (3) |
|
| 43,872 |
|
300 |
| Zimmer Holdings, Inc. (3) |
|
| 23,514 |
|
|
|
|
|
| ||
|
|
|
|
| 837,891 |
|
|
|
|
|
| ||
Industrial Services (2.7%) |
|
|
|
| ||
1,700 |
| Noble Corp. |
|
| 129,455 |
|
3,000 |
| Schlumberger, Ltd. |
|
| 189,480 |
|
|
|
|
|
| ||
|
|
|
|
| 318,935 |
|
|
|
|
|
| ||
Non-Energy Minerals (0.9%) |
|
|
|
| ||
400 |
| Allegheny Technologies, Inc. |
|
| 36,272 |
|
600 |
| Freeport-McMoRan Copper & Gold, Inc. |
|
| 33,438 |
|
1,000 |
| Southern Copper Corp. |
|
| 53,890 |
|
|
|
|
|
| ||
|
|
|
|
| 123,600 |
|
|
|
|
|
| ||
Process Industries (1.7%) |
|
|
|
| ||
1,250 |
| Air Products and Chemicals, Inc. |
|
| 87,850 |
|
2,200 |
| Monsanto Co. |
|
| 115,566 |
|
|
|
|
|
| ||
|
|
|
|
| 203,416 |
|
|
|
|
|
| ||
Producer Manufacturing (6.5%) |
|
|
|
| ||
700 |
| Caterpillar, Inc. |
|
| 42,931 |
|
2,400 |
| Emerson Electric Co. |
|
| 105,768 |
|
1,200 |
| General Dynamics Corp. |
|
| 89,220 |
|
6,500 |
| General Electric Co. |
|
| 241,865 |
|
1,100 |
| ITT Industries, Inc. |
|
| 62,502 |
|
300 |
| Precision Castparts Corp. |
|
| 23,484 |
|
1,300 |
| The Boeing Co. |
|
| 115,492 |
|
1,600 |
| United Technologies Corp. |
|
| 100,032 |
|
|
|
|
|
| ||
|
|
|
|
| 781,294 |
|
|
|
|
|
| ||
Retail Trade (4.2%) |
|
|
|
| ||
2,000 |
| Best Buy Co., Inc. |
|
| 98,380 |
|
3,900 |
| CVS Corp. |
|
| 120,549 |
|
1,200 |
| J.C. Penney Co., Inc. |
|
| 92,832 |
|
1,300 |
| Lowe’s Companies, Inc. |
|
| 40,495 |
|
2,700 |
| Target Corp. |
|
| 154,035 |
|
|
|
|
|
| ||
|
|
|
|
| 506,291 |
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
| |||
Technology Services (6.3%) |
|
|
|
| ||
1,300 |
| Adobe Systems, Inc. (3) |
|
| 53,456 |
|
1,700 |
| Automatic Data Processing, Inc. |
|
| 83,725 |
|
2,600 |
| First Data Corp. |
|
| 66,352 |
|
300 |
| Google, Inc. (3) |
|
| 138,144 |
|
7,300 |
| Microsoft Corp. |
|
| 217,978 |
|
2,100 |
| SAP AG |
|
| 111,510 |
|
2,600 |
| Western Union Co. |
|
| 58,292 |
|
1,100 |
| Yahoo!, Inc. (3) |
|
| 28,094 |
|
|
|
|
|
| ||
|
|
|
|
| 757,551 |
|
|
|
|
|
| ||
Transportation (1.4%) |
|
|
|
| ||
1,200 |
| Burlington Northern Sante Fe Corp. |
|
| 88,572 |
|
2,800 |
| UTI Worldwide, Inc. |
|
| 83,720 |
|
|
|
|
|
| ||
|
|
|
|
| 172,292 |
|
|
|
|
|
| ||
Utilities (1.0%) |
|
|
|
| ||
2,800 |
| Equitable Resources, Inc. |
|
| 116,900 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 7,709,238 |
| ||
|
|
|
|
| ||
|
|
|
|
|
|
|
Bonds (31.2%) (2) |
|
|
|
| ||
|
|
|
|
|
|
|
Asset-Backed Securities (4.1%) |
|
|
|
| ||
25,000 |
| Countrywide 2006-S6 A4, 5.80%, 3/25/34 |
|
| 24,942 |
|
|
| Green Tree Financial Corp.: |
|
|
|
|
2,701 |
| 1995-5 A6, 7.25%, 9/15/26 |
|
| 2,719 |
|
37,364 |
| 1997-1 A6, 7.29%, 3/15/28 |
|
| 38,993 |
|
38,748 |
| 1997-6 A10, 6.87%, 1/15/29 |
|
| 39,838 |
|
44,514 |
| Indymac Mfg. Housing, |
|
|
|
|
|
| 1998-2 A2, 6.17%, 12/25/11 |
|
| 43,387 |
|
50,000 |
| Merrill Lynch Mortgage Investors, Inc., |
|
|
|
|
|
| 2005-SD1 A2, 5.67%, 5/25/46 |
|
| 49,887 |
|
|
| Origen Mfg. Housing: |
|
|
|
|
46,930 |
| 2001-A A5, 7.08%, 3/15/32 |
|
| 48,167 |
|
26,938 |
| 2002-A A3, 6.17%, 5/15/32 |
|
| 26,894 |
|
86,779 |
| Residential Asset Mtg. Products, Inc., |
|
|
|
|
|
| 2004-SL3 A3, 7.50%, 12/25/31 |
|
| 89,426 |
|
75,000 |
| Residential Funding Mortgage Securities, |
|
|
|
|
|
| 2006-HSA1 A4, 5.49%, 2/25/36 |
|
| 74,465 |
|
50,000 |
| Structured Asset Securities Corp. |
|
|
|
|
|
| 2005-4XS, 5.25%, 3/25/35 |
|
| 48,706 |
|
|
|
|
|
| ||
|
|
|
|
| 487,424 |
|
|
|
|
|
| ||
Collateralized Mortgage Obligations (8.2%) |
|
|
|
| ||
45,830 |
| BAFC 2005-5 A11, 5.50%, 9/25/35 |
|
| 44,885 |
|
8,013 |
| Countrywide Alternative Loan Trust |
|
|
|
|
|
| 2005-53T2 2A1, 6.00%, 11/25/35 |
|
| 7,952 |
|
|
| Countrywide Home Loans: |
|
|
|
|
50,000 |
| 2004-21 A9 , 6.00%, 11/25/34 |
|
| 50,068 |
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
50,000 |
| 2005-J3 1A2, 5.50%, 9/25/35 |
|
| 48,637 |
|
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 |
|
| 117,861 |
|
|
| FHLMC: |
|
|
|
|
37,133 |
| 4.00%, 4/15/27 |
|
| 35,972 |
|
34,970 |
| 3.25%, 4/15/32 |
|
| 32,148 |
|
56,045 |
| FHR 3061 BD, 7.50% 11/15/35 |
|
| 57,725 |
|
|
| FNMA: |
|
|
|
|
72,328 |
| 6.50%, 10/25/17 |
|
| 73,883 |
|
24,370 |
| 5.50%, 5/25/25 |
|
| 24,120 |
|
50,000 |
| 5.00%, 12/25/31 |
|
| 48,033 |
|
42,510 |
| 4.00%, 5/25/33 |
|
| 40,238 |
|
100,000 |
| 5.50%, 4/25/35 |
|
| 98,118 |
|
36,981 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
|
|
| 6.00%, 5/25/35 |
|
| 36,610 |
|
25,000 |
| GMAC Loan Trust 2006-A4, 6.09%, 10/25/36 |
|
| 25,148 |
|
55,230 |
| Master Asset Securitization Trust 2003-4 CA1, |
|
|
|
|
|
| 8.00%, 5/25/18 |
|
| 59,179 |
|
|
| Residential Funding Mtg. Securities: |
|
|
|
|
47,906 |
| 2005-S6 A2, 5.25%, 8/25/35 |
|
| 46,983 |
|
102,541 |
| 2006-S3 A8, 5.50%, 03/25/36 |
|
| 100,421 |
|
39,814 |
| Washington Mutual Mtg. Pass-Through |
|
|
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
|
| 39,242 |
|
|
|
|
|
| ||
|
|
|
|
| 987,223 |
|
|
|
|
|
| ||
Corporate Bonds (7.1%) |
|
|
|
| ||
73,009 |
| America West Airlines, 7.93%, 1/2/19 |
|
| 78,850 |
|
50,000 |
| Bard (C.R.), Inc., 6.70%, 12/1/26 |
|
| 53,317 |
|
50,000 |
| BB&T Capital Trust II, 6.75%, 6/07/36 |
|
| 54,597 |
|
50,000 |
| Citigroup Capital III, 7.625%, 12/01/36 |
|
| 59,910 |
|
50,000 |
| Commonwealth Edison, 5.90%, 3/15/36 |
|
| 50,238 |
|
75,000 |
| Continental Airlines, Inc., 6.563%, 2/15/12 |
|
| 77,556 |
|
50,000 |
| CSX Corp., 9.75%, 6/15/20 |
|
| 66,809 |
|
100,000 |
| McDonald’s Corp., 7.31%, 9/15/27 |
|
| 101,186 |
|
50,000 |
| Midamerican Energy Hldgs, 8.48%, 9/15/28 |
|
| 63,738 |
|
50,000 |
| Narragansett Electric, 7.39%, 10/1/27 |
|
| 51,769 |
|
98,462 |
| Proctor & Gamble ESOP, 9.36%, 1/1/21 |
|
| 123,321 |
|
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 |
|
| 74,493 |
|
|
|
|
|
| ||
|
|
|
|
| 855,784 |
|
|
|
|
|
| ||
Federal Home Loan Mortgage Corporation (3.3%) |
|
|
|
| ||
38,908 |
| 5.342%, 12/1/35 |
|
| 38,958 |
|
21,648 |
| 7.50%, 7/1/29 |
|
| 22,428 |
|
51,453 |
| 7.50%, 3/1/31 |
|
| 53,495 |
|
164,350 |
| 8.00%, 7/1/32 |
|
| 173,036 |
|
38,703 |
| 8.38%, 5/17/20 |
|
| 41,075 |
|
21,845 |
| 8.50%, 7/1/18 |
|
| 23,081 |
|
40,308 |
| 8.50%, 10/1/30 |
|
| 43,146 |
|
|
|
|
|
| ||
|
|
|
|
| 395,219 |
|
|
|
|
|
| ||
Federal National Mortgage Association (3.2%) |
|
|
|
| ||
37,835 |
| 3.375%, 6/1/34 |
|
| 37,745 |
|
81,750 |
| 5.015%, 9/1/39 |
|
| 82,898 |
|
4,617 |
| 7.00%, 3/1/07 |
|
| 4,627 |
|
|
|
See accompanying notes to portfolios of investments on page 44. |
13
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
44,045 |
| 8.46%, 4/15/26 |
|
| 47,708 |
|
27,124 |
| 7.50%, 3/1/31 |
|
| 28,104 |
|
21,546 |
| 7.50%, 6/1/32 |
|
| 22,419 |
|
21,096 |
| 8.00%, 12/1/27 |
|
| 22,248 |
|
58,136 |
| 8.00%, 2/1/31 |
|
| 61,318 |
|
21,932 |
| 9.50%, 5/1/27 |
|
| 24,206 |
|
11,040 |
| 9.75%, 1/15/13 |
|
| 11,890 |
|
10,980 |
| 10.25%, 6/15/13 |
|
| 11,905 |
|
25,596 |
| 11.00%, 12/1/12 |
|
| 27,322 |
|
|
|
|
|
| ||
|
|
|
|
| 382,390 |
|
|
|
|
|
| ||
Government National Mortgage Association (0.9%) |
|
|
|
| ||
56,502 |
| 7.00%, 12/15/24 |
|
| 58,758 |
|
3,964 |
| 9.00%, 6/15/11 |
|
| 4,223 |
|
3,744 |
| 9.00%, 6/15/09 |
|
| 3,862 |
|
16,194 |
| 9.00%, 11/15/16 |
|
| 17,322 |
|
1,694 |
| 9.50%, 5/20/16 |
|
| 1,827 |
|
3,115 |
| 9.50%, 9/20/18 |
|
| 3,381 |
|
12,039 |
| 9.50%, 2/20/19 |
|
| 13,096 |
|
1,203 |
| 11.25%, 10/15/11 |
|
| 1,320 |
|
|
|
|
|
| ||
|
|
|
|
| 103,789 |
|
|
|
|
|
| ||
Taxable Municipal Securities (0.9%) |
|
|
|
| ||
100,000 |
| Academica Charter School, 8.00%, 8/15/24 |
|
| 100,625 |
|
8,000 |
| Bernalillo Multifamily, Series 1998A, |
|
|
|
|
|
| 7.50%, 9/20/20 |
|
| 8,480 |
|
|
|
|
|
| ||
|
|
|
|
| 109,105 |
|
|
|
|
|
| ||
U.S. Government Securities (3.5%) |
|
|
|
| ||
|
| U.S. Treasury Strips, Zero Coupon: |
|
|
|
|
25,000 |
| 4.53% Effective Yield, 11/25/10 |
|
| 20,923 |
|
75,000 |
| 5.04% Effective Yield, 2/15/12 |
|
| 59,236 |
|
150,000 |
| 5.18% Effective Yield, 5/15/16 |
|
| 96,343 |
|
150,000 |
| 5.02% Effective Yield, 5/15/30 |
|
| 48,607 |
|
150,000 |
| U.S. Treasury Bond, 4.50%, 11/30/11 |
|
| 148,664 |
|
50,000 |
| U.S. Treasury Note, 3.375%, 12/15/08 |
|
| 48,678 |
|
|
|
|
|
| ||
|
|
|
|
| 422,451 |
|
|
|
|
|
| ||
Total bonds |
|
| 3,743,385 |
| ||
|
|
|
|
| ||
|
|
|
|
|
|
|
Closed-End Mutual Funds (3.5%) (2) |
|
|
|
| ||
6,009 |
| American Select Portfolio |
|
| 75,113 |
|
5,503 |
| American Strategic, Inc. Portfolio |
|
| 62,514 |
|
13,470 |
| American Strategic, Inc. Portfolio II |
|
| 155,309 |
|
10,609 |
| American Strategic, Inc. Portfolio III |
|
| 130,491 |
|
|
|
|
|
| ||
Total closed-end mutual funds |
|
| 423,427 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
Short-Term Securities (0.1%) (2) |
|
|
|
| ||
14,000 |
| Sit Money Market Fund, |
|
| 14,000 |
|
|
|
|
|
| ||
(cost: $14,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
| $ | 11,890,050 |
| ||
|
|
|
|
| ||
(cost: $10,135,998) (5) |
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
This page has been left blank intentionally.
15
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Roger J. Sit, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Dividend Growth Fund posted a +11.15% (Class I shares) return for the last six months of 2006, compared to the +12.74% return for the S&P 500 Index. For the calendar year 2006, the Fund’s return of +18.29% was ahead of the +15.80% gain for the Index. Since the Fund’s inception on December 31, 2003, the Fund has generated a three-year annualized return of +12.79%, compared to the +10.44% return for the S&P 500 Index.
Stocks surged ahead during the second half of 2006, propelling virtually all market indices solidly higher for the full calendar year. Dividend-paying stocks performed especially well during 2006, particularly during the first half of the year as the market struggled to gain traction. The positive investor sentiment and market momentum are encouraging as we begin 2007. We believe these fundamentals support a positive outlook in the year ahead: Interest rates should remain stable given the likelihood of decelerating inflation; the solid job market is supporting economic growth; and a drop in energy costs is offsetting a correction in housing. While our forecasts for economic growth call for a slowdown in 2007, we expect corporate profits to grow at a mid-single digit rate for the year. We believe this “slow and steady” environment will provide a positive investment backdrop for companies emphasized in the Fund. Specifically, we believe investors will continue to gravitate towards companies that can generate consistent earnings growth and, importantly, that increasingly return capital to shareholders in the form of higher dividends. Approximately 80% of the Fund’s holdings raised dividend payouts in 2006, with average dividend growth of approximately +11%. We expect a similar rate of increase in 2007.
We believe the Fund’s strong performance during 2006 reflects its relative stability (or lower “beta”), as it outperformed the S&P 500 Index during the difficult first half of the year and then underrperformed as market indices posted above-average gains in the second half. Relative to the S&P 500 Index, six-month returns for the Fund were negatively impacted by holdings in the energy (Hugoton, Royalty Trust, BP, Occidental Petroleum) and health technology (GlaxoSmithKline) sectors. Good stock selection in the finance (AllianceBernstein, Kayne Anderson, IPC Holdings) and technology services (Syntel, Accenture) sectors helped performance over the period.
Based on the ongoing investor focus on dividends, we remain optimistic on the prospects for the Fund in the year ahead.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Dividend Growth Fund is to provide current income that exceeds the dividend yield of the S&P 500 Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.
|
PORTFOLIO SUMMARY |
|
|
|
|
|
|
| Class I |
| Class S |
|
|
|
|
|
Net Asset Value |
|
|
|
|
12/31/06: |
| $13.25 Per Share |
| $13.24 Per Share |
6/30/06: |
| $12.26 Per Share |
| $12.26 Per Share |
|
|
|
|
|
Total Net Assets |
| $29.1 Million |
| $2.7 Million |
|
|
|
|
|
Weighted Average Market Cap: $78.3 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
| Class |
| S&P 500 | Class |
| S&P 500 |
| ||||||||
3 Month** |
|
| 5.89 | % |
|
| 6.70 | % |
| 5.83% |
| 6.70 | % | |||
6 Month** |
|
| 11.15 |
|
|
| 12.74 |
|
| 10.95 |
| 12.74 |
| |||
1 Year |
|
| 18.29 |
|
|
| 15.80 |
|
| n/a |
| n/a |
| |||
3 Year |
|
| 12.79 |
|
|
| 10.44 |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 12.79 |
|
|
| 10.44 |
|
| n/a |
| n/a |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Class |
| S&P 500 | Class |
| S&P 500 | |||||||||
1 Year |
|
| 18.29 | % |
|
| 15.80 | % |
| n/a |
| n/a |
| |||
3 Year |
|
| 43.55 |
|
|
| 34.70 |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 43.55 |
|
|
| 34.70 |
|
| 11.25% |
| 11.11 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 12/31/06 |
| |||||||||||||||
**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 12/31/06 would have grown to $14,355 in the Fund or $13,470 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | General Electric Co. |
| 2. | Citigroup, Inc. |
| 3. | Kayne Anderson MLP Invest. Co. |
| 4. | Marathon Oil Corp. |
| 5. | United Technologies Corp. |
| 6. | Wells Fargo & Co. |
| 7. | Total S.A. |
| 8. | Johnson & Johnson, Inc. |
| 9. | J.P. Morgan Chase & Co. |
| 10. | Alliance Capital Mgmt. Hldg., LP |
|
| Total Number of Holdings: 86 |
17
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
Common Stocks (95.0%) (2) |
|
|
|
| ||
|
|
|
|
| ||
Commercial Services (2.8%) |
|
|
|
| ||
7,400 |
| McGraw-Hill Companies, Inc. |
|
| 503,348 |
|
8,500 |
| Pitney Bowes, Inc. |
|
| 392,615 |
|
|
|
|
|
| ||
|
|
|
|
| 895,963 |
|
|
|
|
|
| ||
Communications (1.6%) |
|
|
|
| ||
14,400 |
| AT&T, Inc. |
|
| 514,800 |
|
|
|
|
|
| ||
| ||||||
Consumer Non-Durables (8.8%) |
|
|
|
| ||
4,200 |
| Colgate-Palmolive Co. |
|
| 274,008 |
|
5,000 |
| Diageo p.l.c. |
|
| 396,550 |
|
5,200 |
| General Mills, Inc. |
|
| 299,520 |
|
5,900 |
| Kimberly-Clark Corp. |
|
| 400,905 |
|
7,700 |
| PepsiCo, Inc. |
|
| 481,635 |
|
9,800 |
| Procter & Gamble Co. |
|
| 629,846 |
|
4,000 |
| VF Corp. |
|
| 328,320 |
|
|
|
|
|
| ||
|
|
|
|
| 2,810,784 |
|
|
|
|
|
| ||
Electronic Technology (3.5%) |
|
|
|
| ||
8,100 |
| Hewlett-Packard Co. |
|
| 333,639 |
|
3,200 |
| International Business Machines Corp. |
|
| 310,880 |
|
11,700 |
| Motorola, Inc. |
|
| 240,552 |
|
11,500 |
| Nokia Corp., A.D.R. |
|
| 233,680 |
|
|
|
|
|
| ||
|
|
|
|
| 1,118,751 |
|
|
|
|
|
| ||
| ||||||
Energy Minerals (8.6%) |
|
|
|
| ||
8,200 |
| BP p.l.c., A.D.R. |
|
| 550,220 |
|
10,700 |
| Hugoton Royalty Trust |
|
| 263,220 |
|
7,950 |
| Marathon Oil Corp. |
|
| 735,375 |
|
11,400 |
| Occidental Petroleum Corp. |
|
| 556,662 |
|
9,000 |
| Total S.A. |
|
| 647,280 |
|
|
|
|
|
| ||
|
|
|
|
| 2,752,757 |
|
|
|
|
|
| ||
Finance (20.9%) |
|
|
|
| ||
7,000 |
| ACE, Ltd. |
|
| 423,990 |
|
8,000 |
| Alliance Capital Mgmt. Hldg., LP |
|
| 643,200 |
|
4,100 |
| AMB Property Corp. |
|
| 240,301 |
|
9,300 |
| Aspen Insurance Holdings, Ltd. |
|
| 245,148 |
|
4,800 |
| Chubb Corp. |
|
| 253,968 |
|
15,100 |
| Citigroup, Inc. |
|
| 841,070 |
|
15,600 |
| Gladstone Investment Corp. |
|
| 238,836 |
|
2,200 |
| Franklin Resources, Inc. |
|
| 242,374 |
|
7,200 |
| IPC Holdings, Ltd. |
|
| 226,440 |
|
13,350 |
| J.P. Morgan Chase & Co. |
|
| 644,805 |
|
7,500 |
| Lincoln National Corp. |
|
| 498,000 |
|
11,700 |
| Macquarie Infrastructure Co. Trust |
|
| 415,116 |
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
10,000 |
| Mellon Financial Corp. |
|
| 421,500 |
|
6,900 |
| UBS AG |
|
| 416,277 |
|
5,800 |
| U.S. Bancorp |
|
| 209,902 |
|
19,300 |
| Wells Fargo & Co. |
|
| 686,308 |
|
|
|
|
|
| ||
|
|
|
|
| 6,647,235 |
|
|
|
|
|
| ||
Health Services (1.9%) |
|
|
|
| ||
3,300 |
| Computer Programs and Systems, Inc. |
|
| 112,167 |
|
5,000 |
| McKesson Corp. |
|
| 253,500 |
|
8,000 |
| Owens & Minor, Inc. |
|
| 250,160 |
|
|
|
|
|
| ||
|
|
|
|
| 615,827 |
|
|
|
|
|
| ||
Health Technology (11.6%) |
|
|
|
| ||
10,400 |
| Abbott Laboratories |
|
| 506,584 |
|
6,800 |
| Becton, Dickinson & Co. |
|
| 477,020 |
|
2,800 |
| C.R. Bard, Inc. |
|
| 232,316 |
|
5,850 |
| Eli Lilly and Co. |
|
| 304,785 |
|
7,600 |
| GlaxoSmithKline p.l.c. |
|
| 400,976 |
|
9,800 |
| Johnson & Johnson, Inc. |
|
| 646,996 |
|
6,800 |
| Novartis AG, A.D.R. |
|
| 390,592 |
|
13,300 |
| PerkinElmer, Inc. |
|
| 295,659 |
|
8,300 |
| Wyeth |
|
| 422,636 |
|
|
|
|
|
| ||
|
|
|
|
| 3,677,564 |
|
|
|
|
|
| ||
Industrial Services (3.6%) |
|
|
|
| ||
4,500 |
| Granite Construction, Inc. |
|
| 226,440 |
|
2,850 |
| Kinder Morgan, Inc. |
|
| 301,387 |
|
5,100 |
| Lufkin Industries, Inc. |
|
| 296,208 |
|
6,600 |
| Precision Drilling Trust |
|
| 152,856 |
|
3,300 |
| Tenaris S.A., A.D.R. |
|
| 164,637 |
|
|
|
|
|
| ||
|
|
|
|
| 1,141,528 |
|
|
|
|
|
| ||
Non-Energy Minerals (1.0%) |
|
|
|
| ||
2,900 |
| Freeport-McMoran Copper & Gold Corp. |
|
| 161,617 |
|
3,000 |
| Southern Peru Copper Corp. |
|
| 161,670 |
|
|
|
|
|
| ||
|
|
|
|
| 323,287 |
|
|
|
|
|
| ||
Process Industries (3.7%) |
|
|
|
| ||
4,400 |
| Air Products and Chemicals, Inc. |
|
| 309,232 |
|
7,900 |
| Compass Minerals International, Inc. |
|
| 249,324 |
|
5,900 |
| E.I. Du Pont de Nemours and Co. |
|
| 287,389 |
|
10,600 |
| RPM International, Inc. |
|
| 221,434 |
|
4,000 |
| UAP Holding Corp. |
|
| 100,720 |
|
|
|
|
|
| ||
|
|
|
|
| 1,168,099 |
|
|
|
|
|
| ||
Producer Manufacturing (12.4%) |
|
|
|
| ||
4,000 |
| Autoliv, Inc. |
|
| 241,200 |
|
3,300 |
| Caterpillar, Inc. |
|
| 202,389 |
|
11,800 |
| Emerson Electric Co. |
|
| 520,026 |
|
7,700 |
| General Dynamics Corp. |
|
| 572,495 |
|
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
|
|
33,600 |
| General Electric Co. |
|
| 1,250,256 |
|
5,200 |
| Honeywell International Inc. |
|
| 235,248 |
|
4,000 |
| ITT Industries, Inc. |
|
| 227,280 |
|
11,100 |
| United Technologies Corp. |
|
| 693,972 |
|
|
|
|
|
| ||
|
|
|
|
| 3,942,866 |
|
|
|
|
|
| ||
Retail Trade (3.4%) |
|
|
|
| ||
5,100 |
| Best Buy Co., Inc. |
|
| 250,869 |
|
9,600 |
| Cato Corp. |
|
| 219,936 |
|
5,100 |
| Claire’s Stores, Inc. |
|
| 169,014 |
|
3,900 |
| Costco Wholesale Corp. |
|
| 206,193 |
|
7,900 |
| Limited Brands, Inc. |
|
| 228,626 |
|
|
|
|
|
| ||
|
|
|
|
| 1,074,638 |
|
|
|
|
|
| ||
Technology Services (4.6%) |
|
|
|
| ||
10,200 |
| Accenture, Ltd. |
|
| 376,686 |
|
5,300 |
| Automatic Data Processing, Inc. |
|
| 261,025 |
|
16,900 |
| Microsoft Corp. |
|
| 504,634 |
|
11,822 |
| Syntel, Inc. |
|
| 316,830 |
|
|
|
|
|
| ||
|
|
|
|
| 1,459,175 |
|
|
|
|
|
| ||
Transportation (2.6%) |
|
|
|
| ||
3,900 |
| Burlington Northern Santa Fe Corp. |
|
| 287,859 |
|
7,100 |
| Ship Finance International, Ltd. |
|
| 168,696 |
|
3,100 |
| Tsakos Energy Navigation, Ltd. |
|
| 142,290 |
|
3,150 |
| United Parcel Service, Inc. |
|
| 236,187 |
|
|
|
|
|
| ||
|
|
|
|
| 835,032 |
|
|
|
|
|
| ||
Utilities (4.0%) |
|
|
|
| ||
4,100 |
| Ameren Corp. |
|
| 220,293 |
|
9,800 |
| Equitable Resources, Inc. |
|
| 409,150 |
|
6,200 |
| Exelon Corp. |
|
| 383,718 |
|
4,500 |
| TXU Corp. |
|
| 243,945 |
|
|
|
|
|
| ||
|
|
|
|
| 1,257,106 |
|
|
|
|
|
| ||
Total common stocks |
|
| 30,235,412 |
| ||
|
|
|
|
| ||
|
|
|
|
|
|
|
Closed-End Mutual Funds (2.3%) (2) |
|
|
|
| ||
22,450 |
| Kayne Anderson MLP Invest. Co. |
|
| 740,401 |
|
|
|
|
|
| ||
(cost: $573,841) |
|
|
|
| ||
|
|
|
|
|
|
|
Short-Term Securities (3.1%) (2) |
|
|
|
| ||
989,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 989,000 |
|
|
|
|
|
| ||
(cost: $989,000) |
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments in securities |
| $ | 31,964,813 |
| ||
|
|
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
19
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, Roger J. Sit, Ronald D. Sit |
|
|
|
|
|
|
|
|
The Sit Large Cap Growth Fund’s six-month return was +8.20%, compared to a +10.10% return for the Russell 1000® Growth Index.
Following the sluggish equity market performance through the first half of the year, investors were rewarded for their patience as a strong second half rally led to solid full year returns for stocks. Looking ahead, we expect “more of the same” in 2007, with interest rates remaining relatively stable and continued gains in corporate profits, albeit at slower pace of growth than in 2006. In addition, if the recent downdraft in commodity prices (particularly oil) is sustained, it will likely have a positive impact on inflation, economic growth and corporate profitability.
While large cap growth companies have generally not been in favor in recent years, we believe several key fundamental factors support a change in sentiment in 2007. First, large growth companies have not been this attractively valued in many years relative to their value counterparts. Second, based on our expectations of faster economic growth outside the U.S. and a somewhat weaker U.S. dollar, we believe larger companies with international exposure will attract investor attention. Third, as earnings growth becomes somewhat more scarce in a slowing economy, investors have historically gravitated towards growth companies that can produce consistent double-digit earnings growth even under less favorable economic conditions. Based on our belief in an improving environment for growth stocks, we continue to emphasize “traditional” growth sectors, particularly health care and technology. In addition, we have recently added to capital goods and financial firms that are benefiting from strong growth trends outside the U.S.
While the Fund’s six-month return was positive in absolute terms, it did lag the strong return for S&P 500 Index, largely due to the underperformance of our holdings within the energy minerals (Valero Energy) and health technology (Genentech) sectors. However, the Fund did benefit from strong performance from positions in both the finance (Franklin Resources, Goldman Sachs) and non-energy minerals sector (Allegheny Technology).
Based on the strong fundamental outlook and valuations for companies held in the Fund, we remain enthusiastic about the Fund’s outlook for 2007.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/06: |
| $40.41 Per Share |
6/30/06: |
| $34.27 Per Share |
| ||
Total Net Assets: |
| $106.9 Million |
| ||
Weighted Average Market Cap: |
| $79.4 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| 6.25 | % |
| 5.93 | % |
| 6.95 | % |
| |
6 Month** |
| 8.20 |
|
| 10.10 |
|
| 12.36 |
|
| |
1 Year |
| 9.54 |
|
| 9.08 |
|
| 15.46 |
|
| |
5 Year |
| 3.50 |
|
| 2.69 |
|
| 6.82 |
|
| |
10 Year |
| 5.43 |
|
| 5.44 |
|
| 8.64 |
|
| |
Inception*** |
| 11.06 |
|
| 11.94 |
|
| 13.60 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| 9.54 | % |
| 9.08 | % |
| 15.46 | % |
| |
5 Year |
| 18.76 |
|
| 14.20 |
|
| 39.10 |
|
| |
10 Year |
| 69.70 |
|
| 69.92 |
|
| 129.13 |
|
| |
Inception*** |
| 1184.66 |
|
| 1457.94 |
|
| 2127.88 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 12/31/06 | **Not annualized. |
| |||||||||
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. ***On 6/6/93, the Fund’s investment objective changed to allow for a portfolio of 100% stocks. Prior to that time, the portfolio was required to contain no more than 80% stocks. | |
(1) | An unmanaged index that measures the performance of those Russell 1000 companies (the largest 1,000 U.S. companies by capitalization) with higher price-to-book ratios and higher forecasted growth values. |
(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 12/31/96 and held until 12/31/06 would have grown to $16,970 in the Fund or $16,992 in the Russell 1000® Growth Index.
|
TOP 10 HOLDINGS |
|
|
1. | Cisco Systems, Inc. |
2. | General Electric Co. |
3. | Citigroup, Inc. |
4. | Microsoft Corp. |
5. | Franklin Resources, Inc. |
6. | Goldman Sachs Group, Inc. |
7. | Schlumberger, Ltd. |
8. | Genentech, Inc. |
9. | Crown Castle Intl Corp. |
10. | Pepsico, Inc. |
| Total Number of Holdings: 85 |
21
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Common Stocks (94.2%) (2) |
|
|
| ||
Communications (3.1%) |
|
|
| ||
62,200 |
| Crown Castle Intl. Corp. (3) |
| 2,009,060 |
|
5,300 |
| NII Holdings, Inc. (3) |
| 341,532 |
|
35,525 |
| Vodafone Group, A.D.R. |
| 986,884 |
|
|
|
|
|
| |
|
|
|
| 3,337,476 |
|
|
|
|
|
| |
Consumer Non-Durables (4.2%) |
|
|
| ||
16,850 |
| Colgate-Palmolive Co. |
| 1,099,294 |
|
31,900 |
| PepsiCo, Inc. |
| 1,995,345 |
|
22,400 |
| Procter & Gamble Co. |
| 1,439,648 |
|
|
|
|
|
| |
|
|
|
| 4,534,287 |
|
|
|
|
|
| |
Consumer Services (5.7%) |
|
|
| ||
38,300 |
| Comcast Corp. (3) |
| 1,621,239 |
|
20,000 |
| Harrah’s Entertainment, Inc. |
| 1,654,400 |
|
29,200 |
| Marriott International, Inc. |
| 1,393,424 |
|
36,600 |
| News Corp. |
| 786,168 |
|
17,100 |
| Starbucks Corp. (3) |
| 605,682 |
|
|
|
|
|
| |
|
|
|
| 6,060,913 |
|
|
|
|
|
| |
Electronic Technology (10.7%) |
|
|
| ||
36,800 |
| Analog Devices, Inc. |
| 1,209,616 |
|
3,900 |
| Apple Computer, Inc. (3) |
| 330,876 |
|
104,400 |
| Cisco Systems, Inc. (3) |
| 2,853,252 |
|
76,500 |
| EMC Corp. (3) |
| 1,009,800 |
|
26,800 |
| Hewlett-Packard Co. |
| 1,103,892 |
|
49,700 |
| Intel Corp. |
| 1,006,425 |
|
42,000 |
| Motorola, Inc. |
| 863,520 |
|
58,400 |
| Nokia Corp., A.D.R. |
| 1,186,688 |
|
40,800 |
| Qualcomm, Inc. |
| 1,541,832 |
|
13,300 |
| Texas Instruments, Inc. |
| 383,040 |
|
|
|
|
|
| |
|
|
|
| 11,488,941 |
|
|
|
|
|
| |
Energy Minerals (7.8%) |
|
|
| ||
17,700 |
| Murphy Oil Corp. |
| 900,045 |
|
32,000 |
| Occidental Petroleum Corp. |
| 1,562,560 |
|
32,000 |
| Southwestern Energy Co. (3) |
| 1,121,600 |
|
19,500 |
| Suncor Energy, Inc. |
| 1,538,745 |
|
11,100 |
| Ultra Petroleum Corp. (3) |
| 530,025 |
|
19,900 |
| Valero Energy Corp. |
| 1,018,084 |
|
34,366 |
| XTO Energy, Inc. |
| 1,616,921 |
|
|
|
|
|
| |
|
|
|
| 8,287,980 |
|
|
|
|
|
| |
Finance (15.3%) |
|
|
| ||
19,100 |
| American Express Co. |
| 1,158,797 |
|
24,462 |
| American International Group, Inc. |
| 1,752,947 |
|
600 |
| Chicago Merc. Exchange Holdings, Inc. | 305,850 |
| |
47,000 |
| Citigroup, Inc. |
| 2,617,900 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
| ||
19,400 |
| Franklin Resources, Inc. |
| 2,137,298 |
36,800 |
| J.P. Morgan Chase & Co. |
| 1,777,440 |
25,600 |
| Mellon Financial Corp. |
| 1,079,040 |
9,200 |
| Merrill Lynch & Co., Inc. |
| 856,520 |
12,900 |
| Prudential Financial, Inc. |
| 1,107,594 |
10,300 |
| The Goldman Sachs Group, Inc. |
| 2,053,305 |
44,200 |
| Wells Fargo Co. |
| 1,571,752 |
|
|
|
| |
|
|
|
| 16,418,443 |
|
|
|
| |
Health Services (2.1%) |
|
| ||
22,700 |
| UnitedHealth Group, Inc. |
| 1,219,671 |
13,000 |
| WellPoint, Inc. (3) |
| 1,022,970 |
|
|
|
| |
|
|
|
| 2,242,641 |
|
|
|
| |
Health Technology (10.4%) |
|
| ||
20,900 |
| Abbott Laboratories |
| 1,018,039 |
15,600 |
| Amgen, Inc. (3) |
| 1,065,636 |
29,800 |
| Celgene Corp. (3) |
| 1,714,394 |
17,800 |
| Eli Lilly and Co. |
| 927,380 |
25,100 |
| Genentech, Inc. (3) |
| 2,036,363 |
19,800 |
| Gilead Sciences, Inc. (3) |
| 1,285,614 |
14,750 |
| Johnson & Johnson |
| 973,795 |
42,225 |
| Pfizer, Inc. |
| 1,093,628 |
15,500 |
| St. Jude Medical, Inc. (3) |
| 566,680 |
5,400 |
| Zimmer Holdings, Inc. (3) |
| 423,252 |
|
|
|
| |
|
|
|
| 11,104,781 |
|
|
|
| |
Industrial Services (4.0%) |
|
| ||
4,300 |
| McDermott International, Inc. (3) |
| 218,698 |
16,000 |
| Nabors Industries, Ltd. (3) |
| 476,480 |
20,400 |
| Noble Corp. |
| 1,553,460 |
32,400 |
| Schlumberger, Ltd. |
| 2,046,384 |
|
|
|
| |
|
|
|
| 4,295,022 |
|
|
|
| |
Non-Energy Minerals (1.6%) |
|
| ||
8,400 |
| Allegheny Technologies, Inc. |
| 761,712 |
7,100 |
| Freeport-McMoRan Copper & Gold, Inc. |
| 395,683 |
9,600 |
| Southern Copper Corp. |
| 517,344 |
|
|
|
| |
|
|
|
| 1,674,739 |
|
|
|
| |
Process Industries (2.2%) |
|
| ||
15,100 |
| Air Products and Chemicals, Inc. |
| 1,061,228 |
24,200 |
| Monsanto Co. |
| 1,271,226 |
|
|
|
| |
|
|
|
| 2,332,454 |
|
|
|
| |
Producer Manufacturing (9.4%) |
|
| ||
8,700 |
| Caterpillar, Inc. |
| 533,571 |
33,800 |
| Emerson Electronic Co. |
| 1,489,566 |
16,600 |
| General Dynamics Corp. |
| 1,234,210 |
75,800 |
| General Electric Co. |
| 2,820,518 |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
|
14,500 |
| ITT Corp. |
|
| 823,890 |
|
4,200 |
| Precision Castparts Corp. |
|
| 328,776 |
|
19,000 |
| The Boeing Co. |
|
| 1,687,960 |
|
18,300 |
| United Technologies Corp. |
|
| 1,144,116 |
|
|
|
|
|
| ||
|
|
|
|
| 10,062,607 |
|
|
|
|
|
| ||
Retail Trade (6.1%) |
|
|
|
| ||
26,800 |
| Best Buy Co., Inc. |
|
| 1,318,292 |
|
53,700 |
| CVS Corp. |
|
| 1,659,867 |
|
13,700 |
| J.C. Penney Co., Inc. |
|
| 1,059,832 |
|
17,800 |
| Lowe’s Companies, Inc. |
|
| 554,470 |
|
33,300 |
| Target Corp. |
|
| 1,899,765 |
|
|
|
|
|
| ||
|
|
|
|
| 6,492,226 |
|
|
|
|
|
| ||
Technology Services (8.1%) |
|
|
|
| ||
16,400 |
| Adobe Systems, Inc. (3) |
|
| 674,368 |
|
21,600 |
| Automatic Data Processing, Inc. |
|
| 1,063,800 |
|
32,200 |
| First Data Corp. |
|
| 821,744 |
|
3,900 |
| Google, Inc. (3) |
|
| 1,795,872 |
|
76,900 |
| Microsoft Corp. |
|
| 2,296,234 |
|
18,100 |
| SAP AG |
|
| 961,110 |
|
32,200 |
| Western Union Co. |
|
| 721,924 |
|
13,800 |
| Yahoo!, Inc. (3) |
|
| 352,452 |
|
|
|
|
|
| ||
|
|
|
|
| 8,687,504 |
|
|
|
|
|
| ||
Transportation (2.0%) |
|
|
|
| ||
14,800 |
| Burlington Northern Sante Fe Corp. |
|
| 1,092,388 |
|
34,100 |
| UTI Worldwide, Inc. |
|
| 1,019,590 |
|
|
|
|
|
| ||
|
|
|
|
| 2,111,978 |
|
|
|
|
|
| ||
Utilities (1.5%) |
|
|
|
| ||
38,000 |
| Equitable Research, Inc. |
|
| 1,586,500 |
|
|
|
|
|
| ||
|
|
| 100,718,492 |
| ||
|
|
| ||||
(cost: $81,528,336) |
|
|
|
| ||
|
|
|
|
| ||
Short-Term Securities (4.6%) (2) |
|
|
|
| ||
4,925,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 4,925,000 |
|
|
|
| ||||
(cost: $4,925,000) |
|
|
|
| ||
|
|
|
|
| ||
(cost: $86,453,336) (5) |
| $ | 105,643,492 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
23
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 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 12/31/06: |
| $13.98 Per Share |
6/30/06: |
| $13.01 Per Share |
|
|
|
Total Net Assets: |
| $191.3 Million |
| ||
Weighted Average Market Cap: |
| $12.2 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Mid Cap |
| Russell Mid-cap® |
| Russell |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| 7.70 | % |
|
| 6.94 | % |
|
| 7.67 | % | ||
6 Month** |
|
| 7.46 |
|
|
| 7.89 |
|
|
| 9.94 |
| ||
1 Year |
|
| 9.56 |
|
|
| 10.65 |
|
|
| 15.27 |
| ||
5 Year |
|
| 5.99 |
|
|
| 8.21 |
|
|
| 12.88 |
| ||
10 Year |
|
| 6.22 |
|
|
| 8.61 |
|
|
| 12.14 |
| ||
Inception |
|
| 13.65 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Mid Cap |
| Russell Mid-cap® |
| Russell | ||||||||
|
|
|
|
|
|
|
|
|
|
| ||||
1 Year |
|
| 9.56 | % |
|
| 10.65 | % |
|
| 15.27 | % | ||
5 Year |
|
| 33.78 |
|
|
| 48.39 |
|
|
| 83.25 |
| ||
10 Year |
|
| 82.91 |
|
|
| 128.50 |
|
|
| 214.38 |
| ||
Inception |
|
| 2152.11 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/06 | **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 12/31/96 and held until 12/31/06 would have grown to $18,291 in the Fund or $22,850 in the Russell Midcap® Growth Index.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Celgene Corp. |
| 2. | Coach, Inc. |
| 3. | XTO Energy, Inc. |
| 4. | Affiliated Managers Group, Inc. |
| 5. | Cognizant Tech. Solutions Corp. |
| 6. | Precision Castparts Corp. |
| 7. | TCF Financial Corp. |
| 8. | Adobe Systems, Inc. |
| 9. | Broadcom Corp. |
| 10. | Ace, Ltd. |
|
| Total Number of Holdings: 87 |
25
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
| Portfolio of Investments - December 31, 006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (94.9%) (2) |
|
|
| ||
Communications (3.0%) |
|
|
| ||
74,600 |
| American Tower Corp. (3) |
| 2,781,088 |
|
44,500 |
| NII Holdings, Inc. (3) |
| 2,867,580 |
|
|
|
|
|
| |
|
|
|
| 5,648,668 |
|
|
|
|
|
| |
Consumer Durables (1.5%) |
|
|
| ||
14,100 |
| Electronic Arts Inc. (3) |
| 710,076 |
|
72,700 |
| Scientific Games Corp. (3) |
| 2,197,721 |
|
|
|
|
|
| |
|
|
|
| 2,907,797 |
|
|
|
|
|
| |
Consumer Non-Durables (3.5%) |
|
|
| ||
137,700 |
| Coach, Inc. (3) |
| 5,915,592 |
|
23,500 |
| Hansen Natural Corp. (3) |
| 791,480 |
|
|
|
|
|
| |
|
|
|
| 6,707,072 |
|
|
|
|
|
| |
Consumer Services (3.3%) |
|
|
| ||
21,900 |
| Harrah’s Entertainment, Inc. |
| 1,811,568 |
|
43,500 |
| International Game Technology |
| 2,009,700 |
|
52,400 |
| Marriott International, Inc. |
| 2,500,528 |
|
|
|
|
|
| |
|
|
|
| 6,321,796 |
|
|
|
|
|
| |
Electronic Technology (11.1%) |
|
|
| ||
91,150 |
| Analog Devices, Inc. |
| 2,996,100 |
|
24,000 |
| Apple Computer, Inc. (3) |
| 2,036,160 |
|
97,175 |
| Broadcom Corp. (3) |
| 3,139,724 |
|
109,250 |
| Juniper Networks, Inc. (3) |
| 2,069,195 |
|
37,800 |
| KLA-Tencor Corp. |
| 1,880,550 |
|
35,500 |
| Lam Research Corp. (3) |
| 1,797,010 |
|
58,200 |
| Network Appliance, Inc. (3) |
| 2,286,096 |
|
126,800 |
| Tellabs, Inc. (3) |
| 1,300,968 |
|
26,450 |
| Trimble Navigation, Ltd. (3) |
| 1,341,809 |
|
101,683 |
| Xilinx, Inc. |
| 2,421,072 |
|
|
|
|
|
| |
|
|
|
| 21,268,684 |
|
|
|
|
|
| |
Energy Minerals (5.5%) |
|
|
| ||
29,000 |
| Apache Corp. |
| 1,928,790 |
|
32,600 |
| Murphy Oil Corp. |
| 1,657,710 |
|
76,400 |
| Southwestern Energy Corp. (3) |
| 2,677,820 |
|
88,416 |
| XTO Energy, Inc. |
| 4,159,973 |
|
|
|
|
|
| |
|
|
|
| 10,424,293 |
|
|
|
|
|
| |
Finance (11.3%) |
|
|
| ||
51,050 |
| Ace, Ltd. |
| 3,092,099 |
|
37,400 |
| Affiliated Managers Group, Inc. (3) |
| 3,931,862 |
|
2,200 |
| Chicago Mercantile Exchange Hldgs., Inc. |
| 1,121,450 |
|
59,700 |
| HCC Insurance Holdings, Inc. |
| 1,915,773 |
|
95,250 |
| Hudson City Bancorp, Inc. |
| 1,322,070 |
|
15,600 |
| IntercontinentalExchange, Inc. (3) |
| 1,683,240 |
|
22,100 |
| Lehman Brothers Holdings, Inc. |
| 1,726,452 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
16,600 |
| Northern Trust Corp. |
| 1,007,454 |
54,500 |
| T. Rowe Price Group Inc. |
| 2,385,465 |
125,300 |
| TCF Financial Corp. |
| 3,435,726 |
|
|
|
| |
|
|
|
| 21,621,591 |
|
|
|
| |
Health Services (4.3%) |
|
| ||
39,550 |
| Caremark Rx, Inc. |
| 2,258,700 |
31,100 |
| Coventry Health Care, Inc. (3) |
| 1,556,555 |
30,200 |
| Laboratory Corp. (3) |
| 2,218,794 |
28,000 |
| Stericycle, Inc. (3) |
| 2,114,000 |
|
|
|
| |
|
|
|
| 8,148,049 |
|
|
|
| |
Health Technology (15.2%) |
|
| ||
33,900 |
| Advanced Medical Optics, Inc. (3) |
| 1,193,280 |
22,700 |
| Alcon, Inc. |
| 2,537,179 |
17,300 |
| Allergan, Inc. |
| 2,071,502 |
137,700 |
| Celgene Corp. (3) |
| 7,921,881 |
90,150 |
| Elan Corp., A.D.R. (3) |
| 1,329,712 |
42,900 |
| Gilead Sciences, Inc. (3) |
| 2,785,497 |
10,300 |
| Idexx Laboratories, Inc. (3) |
| 816,790 |
26,650 |
| Intuitive Surgical, Inc. (3) |
| 2,555,735 |
54,000 |
| Kyphon, Inc. (3) |
| 2,181,600 |
51,800 |
| SurModics, Inc. (3) |
| 1,612,016 |
66,050 |
| Thermo Fisher Scientific Inc. (3) |
| 2,991,405 |
29,000 |
| Vertex Pharmaceuticals, Inc. (3) |
| 1,085,180 |
|
|
|
| |
|
|
|
| 29,081,777 |
|
|
|
| |
Industrial Services (5.5%) |
|
| ||
48,800 |
| BJ Services Co. |
| 1,430,816 |
52,300 |
| McDermott International, Inc. (3) |
| 2,659,978 |
29,400 |
| Nabors Industries, Ltd. (3) |
| 875,532 |
36,200 |
| Noble Corp. |
| 2,756,630 |
65,100 |
| Smith International, Inc. |
| 2,673,657 |
|
|
|
| |
|
|
|
| 10,396,613 |
|
|
|
| |
Non-Energy Minerals (2.1%) |
|
| ||
20,200 |
| Allegheny Technologies, Inc. |
| 1,831,736 |
14,300 |
| RTI International Metals, Inc. (3) |
| 1,118,546 |
21,200 |
| Southern Copper Corp. |
| 1,142,468 |
|
|
|
| |
|
|
|
| 4,092,750 |
|
|
|
| |
Process Industries (1.0%) |
|
| ||
45,400 |
| Airgas, Inc. |
| 1,839,608 |
|
|
|
| |
Producer Manufacturing (7.4%) |
|
| ||
59,950 |
| AMETEK, Inc. |
| 1,908,808 |
33,800 |
| Anixter International, Inc. (3) |
| 1,835,340 |
42,000 |
| IDEX Corp. |
| 1,991,220 |
42,000 |
| ITT Industries, Inc. |
| 2,386,440 |
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
|
16,600 |
| Jacobs Engineering Group, Inc. (3) |
|
| 1,353,564 |
|
46,400 |
| Precision Castparts Corp. |
|
| 3,632,192 |
|
16,200 |
| Rockwell Collins, Inc. |
|
| 1,025,298 |
|
|
|
|
|
| ||
|
|
|
|
| 14,132,862 |
|
|
|
|
|
| ||
Retail Trade (5.0%) |
|
|
|
| ||
37,575 |
| Best Buy Co., Inc. |
|
| 1,848,314 |
|
94,200 |
| Chico’s FAS, Inc. (3) |
|
| 1,948,998 |
|
18,900 |
| GameStop Corp. (3) |
|
| 1,041,579 |
|
38,700 |
| Nordstrom, Inc. |
|
| 1,909,458 |
|
74,275 |
| Staples, Inc. |
|
| 1,983,143 |
|
19,100 |
| Whole Foods Market, Inc. |
|
| 896,363 |
|
|
|
|
|
| ||
|
|
|
|
| 9,627,855 |
|
|
|
|
|
| ||
Technology Services (13.0%) |
|
|
|
| ||
80,590 |
| Adobe Systems, Inc. (3) |
|
| 3,313,861 |
|
27,850 |
| Akamai Technologies, Inc. (3) |
|
| 1,479,392 |
|
47,900 |
| Amdocs, Ltd. (3) |
|
| 1,856,125 |
|
47,100 |
| Autodesk, Inc. (3) |
|
| 1,905,666 |
|
64,200 |
| BEA Systems, Inc. (3) |
|
| 807,636 |
|
34,500 |
| Business Objects, A.D.R. (3) |
|
| 1,361,025 |
|
82,600 |
| Ceridian Corp. (3) |
|
| 2,311,148 |
|
49,500 |
| Cognizant Tech. Solutions Corp. (3) |
|
| 3,819,420 |
|
27,700 |
| Global Payments Inc. |
|
| 1,282,510 |
|
9,900 |
| Intuit, Inc. (3) |
|
| 302,049 |
|
83,500 |
| McAfee, Inc. (3) |
|
| 2,369,730 |
|
35,250 |
| NAVTEQ (3) |
|
| 1,232,692 |
|
73,600 |
| Paychex, Inc. |
|
| 2,910,144 |
|
|
|
|
|
| ||
|
|
|
|
| 24,951,398 |
|
|
|
|
|
| ||
Transportation (2.2%) |
|
|
|
| ||
43,900 |
| C.H. Robinson Worldwide, Inc. |
|
| 1,795,071 |
|
83,400 |
| UTI Worldwide, Inc. |
|
| 2,493,660 |
|
|
|
|
|
| ||
|
|
|
|
| 4,288,731 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 181,459,544 |
| ||
|
|
|
|
| ||
(cost: $128,080,333) |
|
|
| |||
|
|
|
|
|
|
|
Short-Term Securities (4.2%) (2) |
|
|
|
| ||
7,989,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 7,989,000 |
|
|
|
|
|
| ||
(cost: $7,989,000) |
|
|
| |||
|
|
|
|
|
|
|
Total investments in securities |
| $ | 189,448,544 | |||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
27
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Janet K. Kinzler, Tasha M. Murdoff |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/06: |
| $16.87 Per Share |
6/30/06: |
| $15.48 Per Share |
|
|
|
Total Net Assets: |
| $37.3 Million |
|
|
|
Weighted Average Market Cap: |
| $57.1 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| 8.40 | % |
|
| 9.40 | % |
|
| 10.35 | % |
| ||
6 Month** |
|
| 9.94 |
|
|
| 11.93 |
|
|
| 14.69 |
|
| ||
1 Year |
|
| 18.19 |
|
|
| 22.33 |
|
|
| 26.34 |
|
| ||
5 Year |
|
| 6.69 |
|
|
| 12.27 |
|
|
| 14.98 |
|
| ||
10 Year |
|
| 2.43 |
|
|
| 5.07 |
|
|
| 7.71 |
|
| ||
Inception |
|
| 5.82 |
|
|
| 5.27 |
|
|
| 7.78 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| 18.19 | % |
|
| 22.33 | % |
|
| 26.34 | % |
| ||
5 Year |
|
| 38.24 |
|
|
| 78.35 |
|
|
| 100.94 |
|
| ||
10 Year |
|
| 27.19 |
|
|
| 64.02 |
|
|
| 110.09 |
|
| ||
Inception |
|
| 136.09 |
|
|
| 118.09 |
|
|
| 211.68 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 12/31/06. | **Not annualized. |
| |||||||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. |
|
|
(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 12/31/96 and held until 12/31/06 would have grown to $12,719 in the Fund or $16,402 in the MSCI EAFE Growth Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
29
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
|
1. |
| BHP Billiton, Ltd. |
2. |
| Rio Tinto, A.D.R. |
3. |
| Veolia Environment |
4. |
| Sumitomo Financial Group |
5. |
| NII Holdings, Inc. |
6. |
| Mitsubishi UFJ Financial Group, Inc. |
7. |
| Schlumberger, Ltd. |
8. |
| Novartis, A.G. |
9. |
| Nestle, SA |
10. |
| Roche Holdings, A.G. |
|
| Total Number of Holdings: 90 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (97.5%) (2) |
|
|
| ||
Africa/ Middle East (0.8%) |
|
|
| ||
Israel (0.8%) |
|
|
| ||
7,600 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 294,500 |
|
|
|
|
|
| |
Asia (35.8%) |
|
|
| ||
Australia (6.8%) |
|
|
| ||
17,444 |
| Australia and New Zealand Banking Group (Finance) |
| 387,870 |
|
55,386 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 1,104,481 |
|
4,900 |
| Rio Tinto, p.l.c., A.D.R. (Non-Energy Minerals) |
| 1,041,201 |
|
|
|
|
|
| |
|
|
|
| 2,533,552 |
|
|
|
|
|
| |
Hong Kong / China (5.1%) |
|
|
| ||
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 261,884 |
|
24,500 |
| HSBC Holdings, p.l.c. (Finance) |
| 446,414 |
|
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 341,041 |
|
334,000 |
| Petrochina Co., Ltd. (Energy Minerals) |
| 473,262 |
|
31,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 363,041 |
|
|
|
|
|
| |
|
|
|
| 1,885,642 |
|
|
|
|
|
| |
India * (0.7%) |
|
|
| ||
6,500 |
| ICICI Bank Ltd. (Finance) |
| 271,310 |
|
|
|
|
|
| |
Japan (22.5%) |
|
|
| ||
10,200 |
| AFLAC, Inc., A.D.R. (Finance) |
| 469,200 |
|
30,000 |
| Asahi Breweries (Consumer Non-Durables) |
| 479,627 |
|
10,500 |
| Canon, Inc. (Electronic Tech.) |
| 590,408 |
|
57 |
| DENTSU, Inc. (Consumer Svcs.) |
| 166,951 |
|
65 |
| East Japan Railway (Transportation) |
| 433,679 |
|
5,900 |
| FANUC LTD. (Producer Mfg.) |
| 580,320 |
|
11,200 |
| Honda Motor Co., Ltd. (Producer Mfg.) |
| 441,778 |
|
14,200 |
| Ito En, Ltd. (Consumer Non Durables) |
| 433,788 |
|
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 296,337 |
|
7,000 |
| Millea Holdings, Inc. (Finance) |
| 246,737 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
|
|
|
|
|
8,400 |
| Matsumotokiyoshi Co., Ltd. (Retail Trade) |
| 186,463 |
63 |
| Mitsubishi UFJ Financial Group, Inc. (Finance) |
| 776,976 |
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 157,643 |
52,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 347,379 |
4,000 |
| NITTO DENKO Corp. (Producer Mfg.) |
| 200,076 |
20,000 |
| Nomura Holdings, Inc. (Finance) |
| 376,820 |
6,000 |
| Seven & I Holdings Co., Ltd. (Retail Trade) |
| 186,312 |
57,000 |
| SHIMIZU Corp. (Producer Mfg.) |
| 284,629 |
77 |
| Sumitomo Mitsui Financial Group, Inc. (Finance) |
| 788,385 |
7,500 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 514,246 |
5,200 |
| Yamada Denki Co. (Retail Trade) |
| 440,770 |
|
|
|
| |
|
|
|
| 8,398,524 |
|
|
|
| |
South Korea (0.7%) |
|
| ||
750 |
| Samsung Electronics Co., G.D.R. (Electronic Tech.) |
| 247,177 |
|
|
|
| |
Europe (54.8%) |
|
| ||
Austria (0.6%) |
|
| ||
1,400 |
| Raiffeisen Intl. Bank Holding A.G. (Finance) |
| 213,245 |
|
|
|
| |
Czech Republic (1.4%) |
|
| ||
7,600 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 532,000 |
|
|
|
| |
Denmark (1.7%) |
|
| ||
1,500 |
| Genmab A/S (Health Technology) (3) |
| 100,830 |
13,000 |
| Vestas Wind Systems A/S (Process Industries) (3) |
| 549,035 |
|
|
|
| |
|
|
|
| 649,865 |
|
|
|
| |
Finland (0.8%) |
|
| ||
15,050 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 305,816 |
|
|
|
| |
France (10.9%) |
|
| ||
12,136 |
| AXA (Finance) |
| 490,817 |
3,353 |
| BNP Paribas (Finance) |
| 365,432 |
8,000 |
| Business Objects, A.D.R. (Tech. Svcs.) (3) |
| 315,600 |
2,392 |
| Danone (Consumer Non-Durables) |
| 362,104 |
3,264 |
| Sanofi-Aventis (Health Tech.) |
| 301,070 |
11,800 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 745,288 |
6,884 |
| Total, S.A. (Energy Minerals) |
| 496,091 |
12,578 |
| Veolia Environment (Utilities) |
| 968,623 |
|
|
|
| |
|
|
|
| 4,045,025 |
|
|
|
| |
Germany (7.3%) |
|
| ||
2,500 |
| Allianz SE (Finance) |
| 510,681 |
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
1,175 |
| Fresenius AG (Health Tech.) |
| 252,260 |
|
2,487 |
| Muenchener Rueckver (Finance) |
| 429,613 |
|
1,485 |
| Puma AG (Consumer Durables) |
| 578,981 |
|
10,892 |
| SAP AG (Tech. Services) |
| 579,394 |
|
3,896 |
| Siemens AG (Producer Mfg.) |
| 386,029 |
|
|
|
|
|
| |
|
|
|
| 2,736,958 |
|
|
|
|
|
| |
Ireland (1.8%) |
|
|
| ||
21,920 |
| Anglo Irish Bank Corp. (Finance) (3) |
| 452,361 |
|
12,250 |
| C&C Group (Consumer Non-Durables) |
| 218,072 |
|
|
|
|
|
| |
|
|
|
| 670,433 |
|
|
|
|
|
| |
Italy (1.7%) |
|
|
| ||
31,100 |
| Azimut Holdings SpA (Finance) (3) |
| 415,842 |
|
12,850 |
| Banco Popolare di Milano Scarl (Finance) |
| 222,823 |
|
|
|
|
|
| |
|
|
|
| 638,665 |
|
|
|
|
|
| |
Netherlands (2.3%) |
|
|
| ||
10,309 |
| ING Groep N.V. (Finance) |
| 456,622 |
|
10,910 |
| Philips Electronics N.V. (Consumer Durables) |
| 411,022 |
|
|
|
|
|
| |
|
|
|
| 867,644 |
|
|
|
|
|
| |
Spain (1.8%) |
|
|
| ||
7,600 |
| Banco Bilbao Vizcaya, S.A. (Finance) |
| 182,856 |
|
22,675 |
| Telefonica, S.A. (Communications) |
| 481,995 |
|
|
|
|
|
| |
|
|
|
| 664,851 |
|
|
|
|
|
| |
Sweden (1.5%) |
|
|
| ||
13,500 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 543,105 |
|
|
|
|
|
| |
Switzerland (11.9%) |
|
|
| ||
7,614 |
| Credit Suisse Group (Finance) |
| 531,739 |
|
5,755 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 417,941 |
|
1,982 |
| Nestle, S.A. (Consumer Non-Durables) |
| 703,044 |
|
12,586 |
| Novartis, A.G. (Health Tech.) |
| 724,311 |
|
2,146 |
| Panalpina Welttransport Holding (Transportation) (3) |
| 292,181 |
|
3,767 |
| Roche Holdings, A.G. (Health Tech.) |
| 674,277 |
|
4,576 |
| Synthes, Inc. (Health Tech.) (3) |
| 544,682 |
|
9,282 |
| UBS, A.G. (Finance) |
| 563,064 |
|
|
|
|
|
| |
|
|
|
| 4,451,239 |
|
|
|
|
|
| |
United Kingdom (11.1%) |
|
|
| ||
24,800 |
| BAE Systems p.l.c. (Producer Manufacturing) |
| 206,646 |
|
15,266 |
| Barclays, p.l.c. (Finance) |
| 218,107 |
|
5,100 |
| BP p.l.c., A.D.R. (Energy Minerals) |
| 342,210 |
|
21,018 |
| Burberry Group, p.l.c. (Retail Trade) |
| 265,527 |
|
4,829 |
| Cairn Energy, p.l.c. (Energy Minerals) (3) |
| 170,024 |
|
11,400 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 601,464 |
|
14,289 |
| Ladbrokes p.l.c. (Consumer Services) |
| 116,967 |
|
12,300 |
| Pearson plc (Consumer Services) |
| 185,730 |
|
9,835 |
| Reckitt Benckiser, p.l.c. (Consumer Non-Durables) |
| 449,259 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
| ||
9,427 |
| Royal Bank of Scotland (Finance) |
|
| 367,707 |
60,712 |
| Tesco, p.l.c. (Retail Trade) |
|
| 480,634 |
184,359 |
| Vodafone Group, p.l.c. (Communications) |
|
| 510,555 |
15,354 |
| WPP Group p.l.c. (Consumer Svcs.) |
|
| 207,495 |
|
|
|
| ||
|
|
|
|
| 4,122,325 |
|
|
|
| ||
Latin America (4.0%) |
|
|
| ||
Argentina (0.9%) |
|
|
| ||
6,750 |
| Tenaris S.A., A.D.R. (Industrial Services) |
|
| 336,758 |
|
|
|
| ||
Mexico (3.1%) |
|
|
| ||
12,100 |
| NII Holdings, Inc. (Communications) (3) |
|
| 779,724 |
88,260 |
| Wal-Mart de Mexico (Retail Trade) |
|
| 387,461 |
|
|
|
| ||
|
|
|
|
| 1,167,185 |
|
|
|
| ||
North America (2.1%) |
|
|
| ||
Canada (1.0%) |
|
|
| ||
2,700 |
| Suncor Energy, Inc. (Energy Minerals) |
|
| 213,057 |
9,600 |
| Talisman Energy, Inc. (Energy Minerals) |
|
| 163,104 |
|
|
|
| ||
|
|
|
|
| 376,161 |
|
|
|
| ||
United States (1.1%) |
|
|
| ||
10,200 |
| News Corp., Ltd., A.D.R. (Consumer Svcs.) |
|
| 219,096 |
5,529 |
| VeriFone Holdings, Inc. (Commercial Svcs.) (3) |
|
| 195,727 |
|
|
|
| ||
|
|
|
|
| 414,823 |
|
|
|
| ||
|
|
|
| ||
Total common stocks |
|
| 36,366,803 | ||
|
| ||||
(cost: $24,266,221) |
|
|
| ||
|
|
|
|
|
|
Closed-End Mutual Fund (1.5%) (2) |
|
|
| ||
12,033 |
| India Fund* (Consumer Svcs.) |
|
| 552,315 |
|
|
|
| ||
(cost: $277,861) |
|
|
| ||
|
|
|
| ||
Short Term Securities (0.6%) (2) |
|
|
| ||
231,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 231,000 |
|
|
|
| ||
(cost: $231,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
| $ | 37,150,118 | ||
|
|
|
|
* | The fund’s total investment in India including the India Fund comprises 2.2% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
31
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
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|
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| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Robert W. Sit, Matt T. Loucks, Michael J. Stellmacher |
|
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|
|
|
|
|
|
The Sit Small Cap Growth Fund returned +2.24% over the past six months. This compares to the six-month return of +6.85% for the Russell 2000® Growth Index, while the Russell 2000® Index rose +9.38% over the period.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of small growth companies with capitalizations of $2.5 billion or less at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/06: |
| $34.21 Per Share |
6/30/06: |
| $33.46 Per Share |
|
|
|
Total Net Assets: |
| $99.2 Million |
|
|
|
|
PORTFOLIO STRUCTURE - BY SECTOR |
32
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| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
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|
| ||||
|
|
|
| Sit Small Cap |
|
| Russell |
|
| Russell 2000® |
| ||||
|
|
|
|
|
|
|
|
|
|
| |||||
3 Month** |
|
| 7.31 | % |
|
| 8.765 | % |
|
| 8.90 | % |
| ||
6 Month** |
|
| 2.24 |
|
|
| 6.85 |
|
|
| 9.38 |
|
| ||
1 Year |
|
| 7.99 |
|
|
| 13.34 |
|
|
| 18.36 |
|
| ||
5 Year |
|
| 6.30 |
|
|
| 6.93 |
|
|
| 11.39 |
|
| ||
10 Year |
|
| 9.02 |
|
|
| 4.88 |
|
|
| 9.44 |
|
| ||
Inception |
|
| 13.02 |
|
|
| 7.76 |
|
|
| 11.39 |
|
| ||
(7/1/94) |
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| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
| |||||||||||||||
|
|
|
| Sit Small Cap Growth |
|
| Russell |
|
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |||||
1 Year |
|
| 7.99 | % |
|
| 13.34 | % |
|
| 18.36 | % |
| ||
5 Year |
|
| 35.70 |
|
|
| 39.78 |
|
|
| 71.46 |
|
| ||
10 Year |
|
| 137.07 |
|
|
| 61.03 |
|
|
| 146.41 |
|
| ||
Inception |
|
| 362.74 |
|
|
| 154.87 |
|
|
| 285.72 |
|
| ||
(7/1/94) |
|
|
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| ||
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|
| ||
*As of 12/31/06. |
| **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 12/31/96 and held until 12/31/06 would have grown to $23,707 in the Fund or $16,103 in the Russell 2000® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
1. | Frontier Oil Corp. |
2. | Celgene Corp. |
3. | Equitable Resources, Inc. |
4. | Affiliated Managers Group, Inc. |
5. | Coach, Inc. |
6. | UTI Worldwide |
7. | URS Corp. |
8. | Southwestern Energy Co. |
9. | SBA Communications Corp. |
10. | Citrix Systems, Inc. |
| Total Number of Holdings: 93 |
33
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (98.8%) (2) |
|
|
| ||
Commercial Services (1.0%) |
|
|
| ||
20,400 |
| Aegean Marine Petroleum Network, Inc. (3) |
| 334,560 |
|
15,900 |
| Getty Images, Inc. (3) |
| 680,838 |
|
|
|
|
|
| |
|
|
|
| 1,015,398 |
|
|
|
|
|
| |
Communications (3.0%) |
|
|
| ||
19,700 |
| NII Holdings, Inc. (3) |
| 1,269,468 |
|
62,650 |
| SBA Communications Corp. (3) |
| 1,722,875 |
|
|
|
|
|
| |
|
|
|
| 2,992,343 |
|
|
|
|
|
| |
Consumer Durables (1.2%) |
|
|
| ||
41,000 |
| Scientific Games Corp. (3) |
| 1,239,430 |
|
|
|
|
|
| |
| |||||
Consumer Non-Durables (3.7%) |
|
|
| ||
17,600 |
| Carter’s, Inc. (3) |
| 448,800 |
|
46,800 |
| Coach, Inc. (3) |
| 2,010,528 |
|
34,500 |
| Hansen Natural Corp. (3) |
| 1,161,960 |
|
|
|
|
|
| |
|
|
|
| 3,621,288 |
|
|
|
|
|
| |
Consumer Services (1.6%) |
|
|
| ||
10,500 |
| Aztar Corp. (3) |
| 571,410 |
|
20,700 |
| Life Time Fitness, Inc. (3) |
| 1,004,157 |
|
|
|
|
|
| |
|
|
|
| 1,575,567 |
|
|
|
|
|
| |
Electronic Technology (14.0%) |
|
|
| ||
73,200 |
| Agere Systems, Inc. (3) |
| 1,401,780 |
|
114,800 |
| Arris Group, Inc. (3) |
| 1,436,148 |
|
44,600 |
| CommScope, Inc. (3) |
| 1,359,408 |
|
30,050 |
| Fairchild Semiconductor International, Inc. (3) |
| 505,141 |
|
29,160 |
| Intersil Corp. |
| 697,507 |
|
26,900 |
| Macrovision Corp. (3) |
| 760,194 |
|
41,000 |
| Microsemi Corp. (3) |
| 805,650 |
|
19,500 |
| MICROS Systems, Inc. (3) |
| 1,027,650 |
|
20,114 |
| Rackable Systems, Inc. (3) |
| 622,931 |
|
29,400 |
| Radyne Corp. (3) |
| 315,756 |
|
43,600 |
| Silicon Laboratories, Inc. (3) |
| 1,510,740 |
|
112,850 |
| Sonus Networks, Inc. (3) |
| 743,682 |
|
22,100 |
| Trimble Navigation, Ltd. (3) |
| 1,121,133 |
|
24,900 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
| 1,133,448 |
|
20,800 |
| Xyratex, Ltd. (3) |
| 448,864 |
|
|
|
|
|
| |
|
|
|
| 13,890,032 |
|
|
|
|
|
| |
Energy Minerals (7.1%) |
|
|
| ||
31,750 |
| Arena Resources, Inc. (3) |
| 1,356,042 |
|
15,800 |
| ATP Oil & Gas Corp. (3) |
| 625,206 |
|
89,200 |
| Frontier Oil Corp. |
| 2,563,608 |
|
240,475 |
| Gasco Energy, Inc. (3) |
| 589,164 |
|
51,600 |
| Southwestern Energy Co. (3) |
| 1,808,580 |
|
7,400 |
| US BioEnergy Corp. (3) |
| 125,800 |
|
|
|
|
|
| |
|
|
|
| 7,068,400 |
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | |
|
|
|
|
|
Finance (6.1%) |
|
| ||
19,775 |
| Affiliated Managers Group, Inc. (3) |
| 2,078,946 |
15,600 |
| Boston Private Financial Holdings, Inc. |
| 440,076 |
16,900 |
| Cowen Group, Inc. (3) |
| 357,435 |
21,200 |
| National Financial Partners Corp. |
| 932,164 |
40,936 |
| New York Community Bancorp, Inc. |
| 659,070 |
20,800 |
| The Navigators Group, Inc. (3) |
| 1,002,144 |
30,640 |
| UCBH Holdings, Inc. |
| 538,038 |
|
|
|
| |
|
|
|
| 6,007,873 |
|
|
|
| |
Health Services (6.9%) |
|
| ||
26,700 |
| Allscripts Healthcare Solutions, Inc. (3) |
| 720,633 |
18,200 |
| Covance, Inc. (3) |
| 1,072,162 |
15,400 |
| Healthways, Inc. (3) |
| 734,734 |
42,500 |
| Psychiatric Solutions, Inc. (3) |
| 1,594,600 |
12,650 |
| Stericycle, Inc. (3) |
| 955,075 |
16,000 |
| United Surgical Partners International, Inc. (3) |
| 453,600 |
39,800 |
| VCA Antech, Inc. (3) |
| 1,281,162 |
|
|
|
| |
|
|
|
| 6,811,966 |
|
|
|
| |
Health Technology (18.9%) |
|
| ||
42,700 |
| Amylin Pharmaceuticals, Inc. (3) |
| 1,540,189 |
43,000 |
| Celgene Corp. (3) |
| 2,473,790 |
48,200 |
| Conor Medsystems, Inc. (3) |
| 1,510,106 |
103,650 |
| CryoLife, Inc. (3) |
| 792,923 |
59,200 |
| CV Therapeutics, Inc. (3) |
| 826,432 |
66,600 |
| ev3, Inc. (3) |
| 1,147,518 |
19,200 |
| Immucor, Inc. (3) |
| 561,216 |
12,600 |
| Intuitive Surgical, Inc. (3) |
| 1,208,340 |
36,200 |
| Kyphon, Inc. (3) |
| 1,462,480 |
30,900 |
| Lifecell Corp. (3) |
| 745,926 |
63,400 |
| NuVasive, Inc. (3) |
| 1,464,540 |
24,400 |
| Palomar Medical Technologies, Inc. (3) |
| 1,236,348 |
20,400 |
| PerkinElmer, Inc. |
| 453,492 |
18,500 |
| ResMed, Inc. (3) |
| 910,570 |
41,596 |
| SurModics, Inc. (3) |
| 1,294,468 |
24,600 |
| Ventana Medical Systems, Inc. (3) |
| 1,058,538 |
|
|
|
| |
|
|
|
| 18,686,876 |
|
|
|
| |
Industrial Services (9.7%) |
|
| ||
40,000 |
| Chicago Bridge & Iron Co. |
| 1,093,600 |
13,400 |
| Core Laboratories N.V. (3) |
| 1,085,400 |
28,900 |
| Flotek Industries, Inc. (3) |
| 810,645 |
19,171 |
| Hydril (3) |
| 1,441,467 |
23,300 |
| Lufkin Industries, Inc. |
| 1,353,264 |
29,350 |
| McDermott International, Inc. (3) |
| 1,492,741 |
23,300 |
| Sterling Constructioin Company, Inc. (3) |
| 507,008 |
43,200 |
| URS Corp. (3) |
| 1,851,120 |
|
|
|
| |
|
|
|
| 9,635,245 |
|
|
|
|
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
|
Non-Energy Minerals (1.8%) |
|
|
|
| ||
16,300 |
| RTI International Metals, Inc. (3) |
|
| 1,274,986 |
|
17,200 |
| Titanium Metals Corp. (3) |
|
| 507,572 |
|
|
|
|
|
| ||
|
|
|
|
| 1,782,558 |
|
|
|
|
|
| ||
Process Industries (0.2%) |
|
|
|
| ||
22,400 |
| Basin Water, Inc. (3) |
|
| 151,648 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Producer Manufacturing (7.8%) |
|
|
|
| ||
47,625 |
| AMETEK, Inc. |
|
| 1,516,380 |
|
13,300 |
| Anixter International, Inc. (3) |
|
| 722,190 |
|
18,900 |
| Astec Industries, Inc. (3) |
|
| 663,390 |
|
22,200 |
| IDEX Corp. |
|
| 1,052,502 |
|
27,025 |
| Joy Global, Inc. |
|
| 1,306,388 |
|
29,850 |
| Kaydon Corp. |
|
| 1,186,239 |
|
26,600 |
| Roper Industries, Inc. |
|
| 1,336,384 |
|
|
|
|
|
| ||
|
|
|
|
| 7,783,473 |
|
|
|
|
|
| ||
Retail Trade (2.2%) |
|
|
|
| ||
49,475 |
| Coldwater Creek, Inc. (3) |
|
| 1,213,127 |
|
32,800 |
| Jos. A. Bank Clothiers, Inc. (3) |
|
| 962,680 |
|
|
|
|
|
| ||
|
|
|
|
| 2,175,807 |
|
|
|
|
|
| ||
Technology Services (9.5%) |
|
|
|
| ||
29,600 |
| ANSYS, Inc. (3) |
|
| 1,287,304 |
|
30,450 |
| Business Objects S.A., A.D.R. (3) |
|
| 1,201,252 |
|
17,700 |
| CACI International, Inc. (3) |
|
| 1,000,050 |
|
59,800 |
| Citrix Systems, Inc. (3) |
|
| 1,617,590 |
|
98,150 |
| Informatica Corp. (3) |
|
| 1,198,411 |
|
31,200 |
| j2 Global Communications, Inc. (3) |
|
| 850,200 |
|
38,800 |
| Quest Software, Inc. (3) |
|
| 568,420 |
|
12,500 |
| Syntel, Inc. |
|
| 335,000 |
|
35,400 |
| The Ultimate Software Group, Inc. (3) |
|
| 823,404 |
|
15,100 |
| WebEx Communications, Inc. (3) |
|
| 526,839 |
|
|
|
|
|
| ||
|
|
|
|
| 9,408,470 |
|
|
|
|
|
| ||
Transportation (1.9%) |
|
|
|
| ||
63,100 |
| UTI Worldwide, Inc. |
|
| 1,886,690 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Utilities (2.2%) |
|
|
|
| ||
53,200 |
| Equitable Resources, Inc. |
|
| 2,221,100 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 97,954,164 |
| ||
|
|
| ||||
Short-Term Securities (0.0%) (2) |
|
|
|
| ||
1,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 1,000 |
|
|
|
|
|
| ||
(cost: $1,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
| $ | 97,955,164 |
| ||
|
|
|
See accompanying notes to portfolios of investments on page 44.
35
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Robert W. Sit, Mark A. Pepper, Matt T. Loucks |
|
|
|
|
|
|
|
|
The Sit Science and Technology Growth Fund returned +7.29% over the past six months, compared to a +11.65% return for the NYSE Arca Tech 100 Index. The S&P 500 Index rose +12.74% 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 12/31/06: |
| $10.75 Per Share |
6/30/06: |
| $10.02 Per Share |
|
|
|
Total Net Assets: |
| $12.5 Million |
|
|
|
Weighted Average Market Cap: |
| $43.6 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
| Sit |
|
| NYSE Arca |
|
| Nasdaq |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
| 6.12 | % |
|
| 5.63 | % |
|
| 6.95 | % |
|
| ||
6 Month** |
| 7.29 |
|
|
| 11.65 |
|
|
| 11.20 |
|
|
| ||
1 Year |
| 1.80 |
|
|
| 4.68 |
|
|
| 9.51 |
|
|
| ||
3 Year |
| 4.32 |
|
|
| 7.88 |
|
|
| 6.43 |
|
|
| ||
5 Year |
| -2.45 |
|
|
| 4.96 |
|
|
| 4.37 |
|
|
| ||
Inception |
| 1.16 |
|
|
| 13.03 |
|
|
| 4.90 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
|
| NYSE Arca |
|
| Nasdaq |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 Year |
| 1.80 | % |
|
| 4.68 | % |
|
| 9.51 | % |
|
| ||
3 Year |
| 13.52 |
|
|
| 25.56 |
|
|
| 20.55 |
|
|
| ||
5 Year |
| -11.67 |
|
|
| 27.36 |
|
|
| 23.83 |
|
|
| ||
Inception |
| 10.95 |
|
|
| 201.32 |
|
|
| 53.79 |
|
|
| ||
(12/31/97) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/06 |
| **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 12/31/06 would have grown to $11,095 in the Fund or $30,132 in the ArcaEx Tech 100 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
1. | Cisco Systems, Inc. |
2. | Google Inc. |
3. | Apple Computer |
4. | Genentech, Inc. |
5. | Celgene Corp. |
6. | Agilent Technologies Inc. |
7. | Hewlett-Packard Co. |
8. | SAP, A.D.R. |
9. | Broadcom Corp. |
10. | Qualcomm, Inc. |
| Total Number of Holdings: 64 |
37
|
|
|
|
|
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
|
Common Stocks (99.6%) (2) |
|
|
|
| ||
Consumer Durables (0.7%) |
|
|
|
| ||
1,800 |
| Electronic Arts, Inc (3) |
|
| 90,648 |
|
|
|
|
|
| ||
Electronic Technology (37.6%) |
|
|
|
| ||
12,000 |
| Advanced Energy Industries, Inc. (3) |
|
| 226,200 |
|
9,000 |
| Agilent Technologies, Inc. (3) |
|
| 313,650 |
|
5,000 |
| Analog Devices, Inc. |
|
| 164,350 |
|
5,800 |
| Apple Computer, Inc. (3) |
|
| 492,072 |
|
9,000 |
| Broadcom Corp. (3) |
|
| 290,790 |
|
26,100 |
| Cisco Systems, Inc. (3) |
|
| 713,313 |
|
14,300 |
| EMC Corp. (3) |
|
| 188,760 |
|
7,100 |
| Hewlett-Packard Co. |
|
| 292,449 |
|
9,000 |
| Intel Corp. |
|
| 182,250 |
|
3,100 |
| LM Ericsson, A.D.R. |
|
| 124,713 |
|
2,500 |
| Lam Research Corp. (3) |
|
| 126,550 |
|
6,600 |
| Motorola, Inc. |
|
| 135,696 |
|
5,300 |
| Network Appliance, Inc. (3) |
|
| 208,184 |
|
6,700 |
| Nokia Corp. |
|
| 136,144 |
|
7,400 |
| Qualcomm, Inc. |
|
| 279,646 |
|
4,500 |
| Rackable Systems, Inc. (3) |
|
| 139,365 |
|
13,000 |
| Radyne ComStream, Inc. (3) |
|
| 139,620 |
|
4,100 |
| Silicon Laboratories Inc. (3) |
|
| 142,065 |
|
9,500 |
| Tellabs, Inc. (3) |
|
| 97,470 |
|
7,300 |
| Xilinx, Inc. |
|
| 173,813 |
|
7,100 |
| Xyratex, Ltd. (3) |
|
| 153,218 |
|
|
|
|
|
| ||
|
|
|
|
| 4,720,318 |
|
|
|
|
|
| ||
Health Technology (29.8%) |
|
|
|
| ||
1,300 |
| Alcon, Inc. |
|
| 145,301 |
|
1,200 |
| Allergan, Inc. |
|
| 143,688 |
|
1,800 |
| Amgen, Inc. (3) |
|
| 122,958 |
|
4,700 |
| Amylin Pharmaceuticals, Inc. (3) |
|
| 169,529 |
|
6,800 |
| Celgene Corp. (3) |
|
| 391,204 |
|
10,900 |
| CV Therapeutics, Inc. (3) |
|
| 152,164 |
|
9,500 |
| Elan Corp., A.D.R (3) |
|
| 140,125 |
|
9,600 |
| ev3, Inc. (3) |
|
| 165,408 |
|
3,500 |
| Foxhollow Technologies, Inc. (3) |
|
| 75,530 |
|
5,000 |
| Genentech, Inc. (3) |
|
| 405,650 |
|
3,500 |
| Gen-Probe, Inc. (3) |
|
| 183,295 |
|
2,300 |
| Genzyme Corp. (3) |
|
| 141,634 |
|
3,000 |
| Gilead Sciences, Inc. (3) |
|
| 194,790 |
|
4,300 |
| Kyphon, Inc. (3) |
|
| 173,720 |
|
8,600 |
| NuVasive, Inc. (3) |
|
| 198,660 |
|
5,000 |
| Surmodics, Inc. (3) |
|
| 155,600 |
|
5,000 |
| St. Jude Medical, Inc. (3) |
|
| 182,800 |
|
2,800 |
| Techne Corp. (3) |
|
| 155,260 |
|
3,000 |
| Thermo Fisher Scientific, Inc. (3) |
|
| 135,870 |
|
2,800 |
| Ventana Medical Systems, Inc. (3) |
|
| 120,484 |
|
4,800 |
| Vertex Pharmaceuticals, Inc. (3) |
|
| 179,616 |
|
|
|
|
|
| ||
|
|
|
|
| 3,733,286 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
|
Producer Manufacturing (2.4%) |
|
|
| ||
3,900 |
| Energy Conversion Devices, Inc. (3) |
|
| 132,522 |
3,700 |
| Harris Corp. |
|
| 169,682 |
|
|
|
| ||
|
|
|
|
| 302,204 |
|
|
|
| ||
Technology Services (29.1%) |
|
|
| ||
6,600 |
| Adobe Systems, Inc. (3) |
|
| 271,392 |
2,400 |
| Akamai Technologies, Inc. (3) |
|
| 127,488 |
4,400 |
| ANSYS, Inc. (3) |
|
| 191,356 |
3,300 |
| Autodesk, Inc. |
|
| 133,518 |
10,000 |
| BEA Systems, Inc. (3) |
|
| 125,800 |
4,500 |
| Business Objects, A.D.R. (3) |
|
| 177,525 |
3,400 |
| Cognizant Tech. Solutions Corp. (3) |
|
| 262,344 |
4,400 |
| First Data Corp. |
|
| 112,288 |
5,000 |
| Global Payments, Inc. |
|
| 231,500 |
1,300 |
| Google, Inc. (3) |
|
| 598,624 |
7,000 |
| J2 Global Communications, Inc. (3) |
|
| 190,750 |
6,700 |
| McAfee, Inc. (3) |
|
| 190,146 |
8,500 |
| Microsoft Corp. |
|
| 253,810 |
4,200 |
| NAVTEQ (3) |
|
| 146,874 |
7,200 |
| Oracle Corp. (3) |
|
| 123,408 |
5,500 |
| SAP, A.D.R. |
|
| 292,050 |
4,400 |
| Western Union Co. |
|
| 98,648 |
4,900 |
| Yahoo!, Inc. (3) |
|
| 125,146 |
|
|
|
| ||
|
|
|
|
| 3,652,667 |
|
|
|
| ||
|
|
|
|
|
|
Total common stocks |
|
| 12,499,123 | ||
|
| ||||
(cost: $10,365,799) |
|
|
| ||
|
|
|
| ||
Short-Term Securities (0.7%) (2) |
|
|
| ||
89,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 89,000 |
|
|
|
| ||
(cost: $89,000) |
|
|
| ||
|
|
|
| ||
Total investments in securities |
| $ | 12,588,123 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 44. | |
|
|
38 |
|
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
This page has been left blank intentionally.
39
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Raymond E. Sit |
|
|
|
|
|
|
|
|
The Sit Developing Markets Growth Fund posted solid returns for the six months ended December 31, 2006, appreciating +21.22% versus +22.09% for the MSCI Emerging Markets Index. The Asian material stocks were the primary reason for the slight underperformance. On the other hand, the Latin American and Eastern Europe holdings contributed to the positive performance; a result of positive stock selection and regional allocation.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/06: |
| $21.02 Per Share |
6/30/06: |
| $17.38 Per Share |
|
|
|
Total Net Assets: |
| $15.8 Million |
|
|
|
Weighted Average Market Cap: |
| $33.1 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| 15.50 | % |
|
| 17.28 | % |
|
| 17.21 | % |
| ||
6 Month** |
|
| 21.22 |
|
| �� | 22.09 |
|
|
| 24.25 |
|
| ||
1 Year |
|
| 31.59 |
|
|
| 29.18 |
|
|
| 30.46 |
|
| ||
5 Year |
|
| 19.57 |
|
|
| 23.52 |
|
|
| 21.94 |
|
| ||
10 Year |
|
| 6.91 |
|
|
| 6.72 |
|
|
| n/a |
|
| ||
Inception |
|
| 6.29 |
|
|
| 5.28 |
|
|
| n/a |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| 31.59 | % |
|
| 29.18 | % |
|
| 30.46 | % |
| ||
5 Year |
|
| 144.42 |
|
|
| 187.54 |
|
|
| 169.59 |
|
| ||
10 Year |
|
| 95.03 |
|
|
| 91.61 |
|
|
| n/a |
|
| ||
Inception |
|
| 114.49 |
|
|
| 90.46 |
|
|
| n/a |
|
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 12/31/06 | **Not annualized. |
| |||||||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. |
|
|
(1) | An unmanaged index that measures the performance of over 1,000 international emerging companies representing the stock markets of approximately 25 countries. |
(2) | An unmanaged index that measures the performance of over 1,000 international emerging companies representing the stock markets of approximately 25 countries. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/96 and held until 12/31/06 would have increased to $19,503 in the Fund, or $19,161 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
41
|
|
|
|
|
| Sit Developing Markets Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2006 (Unaudited) |
|
|
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
|
|
| 1. |
| Samsung Electronics |
| 2. |
| America Movil, A.D.R |
| 3. |
| Petrolieo Brasliero |
| 4. |
| Companhia Vale do Rio Doce, A.D.R |
| 5. |
| Hon Hai Precision, G.D.R. |
| 6. |
| NII Holdings, Inc. |
| 7. |
| Ports Design, Ltd. |
| 8. |
| Anglo American p.l.c. |
| 9. |
| India Fund |
| 10. |
| Wal-Mart de Mexico |
|
|
| Total Number of Holdings: 77 |
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
| ||||
Common Stocks (96.8%) (2) |
|
| ||
Africa/ Middle East (4.5%) |
|
| ||
Israel (2.1%) |
|
| ||
4,600 |
| Amdocs, Ltd. (Technology Svcs.) (3) |
| 178,250 |
5,000 |
| NICE Systems Ltd., A.D.R. (Electronic Tech.) (3) |
| 153,900 |
|
|
|
| |
|
|
|
| 332,150 |
|
|
|
| |
South Africa (2.4%) |
|
| ||
5,300 |
| Bidvest Group, Ltd. (Consumer Svcs.) |
| 100,577 |
6,900 |
| Naspers, Ltd. (Consumer Svcs.) |
| 162,451 |
3,000 |
| Sasol (Energy Minerals) |
| 110,700 |
|
|
|
| |
|
|
|
| 373,728 |
|
|
|
| |
Asia (60.6%) |
|
| ||
Australia (3.6%) |
|
| ||
7,910 |
| BHP Billiton, Ltd., A.D.R. (Non-Energy |
| 314,422 |
1,200 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) |
| 254,988 |
|
|
|
| |
|
|
|
| 569,410 |
|
|
|
| |
China / Hong Kong (18.0%) |
|
| ||
240,000 |
| China Communications Construction. Co. |
| 237,308 |
4,533 |
| China Life Insurance Co., A.D.R. (Utilities) |
| 228,979 |
5,700 |
| China Mobile, Ltd. (Communications) |
| 246,354 |
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) |
| 165,251 |
760,000 |
| China Water Affairs Group (Utilities) (3) |
| 290,231 |
45,000 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 179,100 |
3,100 |
| New Oriental Education & Technology |
| 103,974 |
180,000 |
| PetroChina Co. (Energy Minerals) |
| 255,052 |
161,808 |
| Ports Design, Ltd. (Retail Trade) |
| 353,690 |
300,000 |
| Shanghai Jin Jiang International Hotels Co. |
| 143,881 |
11,000 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 126,375 |
118,000 |
| Tsingtao Brewery Co., Ltd. (Consumer Non-Durables) |
| 199,063 |
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
| ||||
48,000 |
| Wumart Stores, Inc. (Retail Trade) |
| 35,241 |
242,000 |
| Xinao Gas Holdings, Ltd. (Utlities) |
| 273,824 |
|
|
|
| |
|
|
|
| 2,838,323 |
|
|
|
| |
India * (5.0%) |
|
| ||
6,400 |
| ICICI Bank, A.D.R. (Finance) |
| 267,136 |
4,600 |
| Infosys Technologies, Ltd., A.D.R. (Technology Svcs.) |
| 250,976 |
620 |
| Reliance Capital, Ltd. (Energy Minerals) (3) |
| 8,504 |
4,700 |
| Reliance Industries, Ltd., G.D.R. |
| 269,756 |
|
|
|
| |
|
|
|
| 796,372 |
|
|
|
| |
Indonesia (1.8%) |
|
| ||
71,500 |
| PT Astra International Tbk (Producer Mfg.) |
| 124,818 |
3,400 |
| PT Telekomunikasi (Communications) |
| 155,040 |
|
|
|
| |
|
|
|
| 279,858 |
|
|
|
| |
Phillipines (1.2%) |
|
| ||
991,000 |
| Manila Water Co. (Utilities) |
| 190,071 |
|
|
|
| |
| ||||
Russia (4.7%) |
|
| ||
4,475 |
| Gazprom, A.D.R. (Energy Minerals) |
| 205,850 |
2,700 |
| LUKOIL, A.D.R. (Energy Minerals) |
| 237,465 |
3,800 |
| Vimpel Communications, A.D.R. |
| 300,010 |
|
|
|
| |
|
|
|
| 743,325 |
|
|
|
| |
Singapore (1.6%) |
|
| ||
51,600 |
| KS Energy Services, Ltd. (Energy Minerals) |
| 84,077 |
93,430 |
| Starhub, Ltd. (Communications) |
| 160,152 |
|
|
|
| |
|
|
|
| 244,229 |
|
|
|
| |
South Korea (14.3%) |
|
| ||
550 |
| Cheil Communications, Inc. |
| 136,613 |
11,507 |
| Industrial Bank of Korea (Finance) |
| 207,126 |
5,200 |
| Korea Electric Power Corp. (Utilities) |
| 118,092 |
2,200 |
| Kookmin Bank (Finance) |
| 177,183 |
1,900 |
| Kookmin Bank, A.D.R. (Finance) |
| 153,216 |
1,831 |
| Lotte Shopping Co., Ltd., G.D.R. |
| 37,169 |
1,800 |
| POSCO, A.D.R. (Non-Energy Minerals) |
| 148,806 |
1,080 |
| Samsung Electronics (Electronic Tech.) |
| 711,871 |
5,600 |
| Shinhan Financial Group (Finance) |
| 286,021 |
310 |
| Shinsegae Co., Ltd. (Retail Trade) |
| 193,333 |
3,100 |
| SK Telecom Co., A.D.R. (Communications) |
| 82,088 |
|
|
|
| |
|
|
|
| 2,251,518 |
|
|
|
| |
Taiwan (9.3%) |
|
| ||
36,300 |
| Asustek Computer, Inc. (Electronic Tech.) |
| 99,370 |
79,778 |
| Cathay Financial Holding Co., Ltd. |
| 181,174 |
7,200 |
| High Tech Computer Corp. (Electronic Tech.) |
| 142,520 |
26,272 |
| Hon Hai Precision Industry Co., Ltd. G.D.R. |
|
|
|
| (Electronic Tech.) |
| 373,060 |
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer | Market Value ($)(1) | |
| ||||
10,800 |
| Hon Hai Precision Industry Co. , Ltd. |
| 77,060 |
9,350 |
| MediaTek, Inc. (Electronic Tech.) |
| 96,699 |
110,809 |
| Taiwan Semiconductor Co. (Electronic Tech.) |
| 229,542 |
24,513 |
| Taiwan Semiconductor Manufacturing |
| 267,927 |
|
|
|
| |
|
|
|
| 1,467,352 |
|
|
|
| |
Thailand (1.1%) |
|
| ||
45,000 |
| Advanced Info Service Public Co., Ltd. |
| 96,473 |
22,500 |
| Bangkok Bank Public Co., Ltd. (Finance) |
| 71,577 |
|
|
|
| |
|
|
|
| 168,050 |
|
|
|
| |
Europe (6.0%) |
|
| ||
Czech Republic (3.8%) |
|
| ||
4,200 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 294,000 |
6,700 |
| CEZ (Utilities) |
| 308,140 |
|
|
|
| |
|
|
|
| 602,140 |
|
|
|
| |
United Kingdom (2.2%) |
|
| ||
7,090 |
| Anglo American p.l.c. (Non-Energy Minerals) |
| 345,654 |
|
|
|
| |
Latin America (24.6%) |
|
| ||
Argentina (1.4%) |
|
| ||
4,650 |
| Tenaris S.A., A.D.R. (Industrial Svcs.) |
| 231,988 |
|
|
|
| |
Brazil (10.9%) |
|
| ||
4,800 |
| AES Tiete S.A. (Utilities) |
| 140,066 |
5,958 |
| Banco Bradesco S.A. (Finance) |
| 241,419 |
2,100 |
| Companhia Brasileira de Distribuicao Grupo Pao de Acucar, A.D.R. (Retail Trade) |
| 71,757 |
2,100 |
| Companhia de Bebidas das Americas |
| 102,480 |
14,600 |
| Companhia Vale do Rio Doce, A.D.R. |
| 434,204 |
3,883 |
| Embraer de Aeronautica, A.D.R. |
| 160,795 |
19,940 |
| Petrobras (Energy Minerals) |
| 465,111 |
6,900 |
| Tele Norte Leste Participacoes, A.D.R. |
| 102,948 |
|
|
|
| |
|
|
|
| 1,718,780 |
|
|
|
| |
Mexico (11.3%) |
|
| ||
10,800 |
| America Movil, A.D.R. (Communications) |
| 488,376 |
3,000 |
| Cemex S.A. de C.V., A.D.R. |
| 101,490 |
6,400 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) |
| 172,864 |
4,200 |
| Homex, A.D.R. (Consumer |
| 248,094 |
5,700 |
| NII Holdings, Inc. |
| 367,308 |
|
|
|
|
|
|
|
| Quantity Name of Issuer | Market Value ($)(1) | ||||
| ||||||
| 2,800 |
| Telefonos de Mexico, A.D.R. |
|
| 79,072 |
| 72,540 |
| Wal-Mart de Mexico (Retail Trade) |
|
| 318,450 |
|
|
|
|
| ||
|
|
|
|
|
| 1,775,654 |
|
|
|
|
| ||
| Peru (1.0%) |
|
|
| ||
| 2,800 |
| Southern Copper Corp. |
|
| 150,892 |
|
|
|
|
| ||
| North America (1.1%) |
|
|
| ||
| United States (1.1%) |
|
|
| ||
| 4,661 |
| VeriFone Holdings, Inc. |
|
| 164,999 |
|
|
|
|
| ||
| Total common stocks |
|
| 15,244,493 | ||
|
|
| ||||
| (cost: $7,772,374) |
|
|
| ||
| ||||||
| Closed-End Mutual Fund (2.0%) (2) |
|
|
| ||
| 6,953 |
| India Fund* (Consumer Services) |
|
| 319,143 |
|
|
|
|
| ||
| (cost: $144,360) |
|
|
| ||
| ||||||
| Short-Term Securities (1.5%) (2) |
|
|
| ||
| 238,000 |
| Sit Money Market Fund, 4.99% (4) |
|
| 238,000 |
|
|
|
|
| ||
| (cost: $238,000) |
|
|
| ||
|
|
|
|
| ||
| Total investments in securities |
| $ | 15,801,636 | ||
|
|
| ||||
|
|
|
|
| ||
| * The fund’s total investment 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
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Notes to Portfolios of Investments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(1) | Securities are valued by procedures described in note 1 to the financial statements. |
|
|
(2) | Percentage figures indicate percentage of total net assets. |
|
|
(3) | Presently non-income producing securities. |
|
|
(4) | This security represents an investment in an affiliated party. See note 3 to the accompanying financial statements. |
|
|
(5) | At December 31, 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 |
| $ | 10,135,998 |
| $ | 27,491,299 |
| $ | 86,453,336 |
| $ | 136,069,333 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 1,949,153 |
| $ | 4,585,912 |
| $ | 21,646,804 |
| $ | 56,990,620 |
|
Gross unrealized depreciation |
|
| (195,101 | ) |
| (112,398 | ) |
| (2,456,649 | ) |
| (3,611,408 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 1,754,052 |
| $ | 4,473,514 |
| $ | 19,190,155 |
| $ | 53,379,212 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
Cost for federal income tax purposes |
| $ | 24,775,082 |
| $ | 78,277,155 |
| $ | 10,454,799 |
| $ | 8,154,734 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 12,734,955 |
| $ | 23,913,922 |
| $ | 3,063,798 |
| $ | 7,665,966 |
|
Gross unrealized depreciation |
|
| (359,919 | ) |
| (4,235,913 | ) |
| (930,474 | ) |
| (19,065 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 12,375,036 |
| $ | 19,678,009 |
| $ | 2,133,324 |
| $ | 7,646,901 |
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
45
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
| Large Cap |
| ||
|
| Balanced |
| Growth |
| Growth |
| |||
|
| Fund |
| Fund |
| Fund |
| |||
|
|
|
|
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 10,135,998 |
| $ | 27,491,299 |
| $ | 86,453,336 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 11,876,050 |
| $ | 30,975,813 |
| $ | 100,718,492 |
|
Investments in affiliated mutual funds |
|
| 14,000 |
|
| 989,000 |
|
| 4,925,000 |
|
Cash in bank on demand deposit |
|
| 23,231 |
|
| 17,271 |
|
| 876 |
|
Accrued interest and dividends receivable |
|
| 48,251 |
|
| 48,124 |
|
| 111,920 |
|
Receivable for investment securities sold |
|
| 105,523 |
|
| 37,485 |
|
| 1,666,705 |
|
Other receivables |
|
| — |
|
| — |
|
| 11,169 |
|
Receivable for Fund shares sold |
|
| — |
|
| — |
|
| 323,711 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
| 12,067,055 |
|
| 32,067,693 |
|
| 107,757,873 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 48,832 |
|
| 226,152 |
|
| 625,535 |
|
Payable for Fund shares redeemed |
|
| — |
|
| — |
|
| 115,825 |
|
Other payables |
|
| 6,016 |
|
| 508 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 9,755 |
|
| 24,907 |
|
| 86,278 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
| 64,603 |
|
| 251,567 |
|
| 827,638 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 12,002,452 |
| $ | 31,816,126 |
| $ | 106,930,235 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 14,968,566 |
| $ | 26,957,411 |
| $ | 104,234,991 |
|
Undistributed (distributions in excess of) net investment income |
|
| (1,146 | ) |
| 5,408 |
|
| 7,682 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,719,020 | ) |
| 379,793 |
|
| (16,502,593 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 1,754,052 |
|
| 4,473,514 |
|
| 19,190,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
| $ | 12,002,452 |
| $ | 31,816,126 |
| $ | 106,930,235 |
|
|
|
|
|
| ||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 749,167 |
|
| 2,198,099 |
|
| 2,645,877 |
|
Class S |
|
| — |
|
| 203,008 |
|
| — |
|
|
|
|
|
| ||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 12,002,452 |
|
| 29,128,508 |
|
| 106,930,235 |
|
Class S |
|
| — |
|
| 2,687,617 |
|
| — |
|
|
|
|
|
| ||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 16.02 |
| $ | 13.25 |
| $ | 40.41 |
|
Class S |
|
| — |
| $ | 13.24 |
|
| — |
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Science and |
| Developing |
| ||
|
| Mid Cap |
| International |
| Small Cap |
| Technology |
| Markets |
| |||||
|
| Growth |
| Growth |
| Growth |
| Growth |
| Growth |
| |||||
|
| Fund |
| Fund |
| Fund |
| Fund |
| Fund |
| |||||
|
|
|
|
|
|
| ||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 136,069,333 |
| $ | 24,775,082 |
| $ | 78,277,155 |
| $ | 10,454,799 |
| $ | 8,154,734 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 181,459,544 |
| $ | 36,919,118 |
| $ | 97,954,164 |
| $ | 12,499,123 |
| $ | 15,563,636 |
|
Investments in affiliated mutual funds |
|
| 7,989,000 |
|
| 231,000 |
|
| 1,000 |
|
| 89,000 |
|
| 238,000 |
|
Cash in bank on demand deposit |
|
| 505 |
|
| 231 |
|
| — |
|
| 12,423 |
|
| 15,069 |
|
Accrued interest and dividends receivable |
|
| 113,669 |
|
| 97,772 |
|
| 18,376 |
|
| 2,208 |
|
| 42,531 |
|
Receivable for investment securities sold |
|
| 2,101,151 |
|
| 115,136 |
|
| 1,539,765 |
|
| 168,572 |
|
| — |
|
Other receivables |
|
| — |
|
| — |
|
| 51,397 |
|
| — |
|
| 5,511 |
|
Receivable for Fund shares sold |
|
| 14,018 |
|
| — |
|
| 261 |
|
| — |
|
| 14,072 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
| 191,677,887 |
|
| 37,363,257 |
|
| 99,564,963 |
|
| 12,771,326 |
|
| 15,878,819 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investment securities purchased |
|
| 65,414 |
|
| — |
|
| 168,846 |
|
| 194,075 |
|
| — |
|
Payable for Fund shares redeemed |
|
| — |
|
| 3,713 |
|
| 39,355 |
|
| — |
|
| 98,012 |
|
Other payables |
|
| 148,586 |
|
| 29,022 |
|
| 47,037 |
|
| 13,857 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 177,241 |
|
| 48,812 |
|
| 120,194 |
|
| 13,808 |
|
| 25,192 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
| 391,241 |
|
| 81,547 |
|
| 375,432 |
|
| 221,740 |
|
| 123,204 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 191,286,646 |
| $ | 37,281,710 |
| $ | 99,189,531 |
| $ | 12,549,586 |
| $ | 15,755,615 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 152,153,490 |
| $ | 57,459,237 |
| $ | 122,643,958 |
| $ | 30,724,700 |
| $ | 8,532,701 |
|
Undistributed (distributions in excess of) net investment income |
|
| (171,509 | ) |
| 46,361 |
|
| (468,595 | ) |
| (51,360 | ) |
| 13,654 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (14,074,547 | ) |
| (32,600,017 | ) |
| (42,663,841 | ) |
| (20,257,078 | ) |
| (437,643 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 53,379,212 |
|
| 12,376,129 |
|
| 19,678,009 |
|
| 2,133,324 |
|
| 7,646,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
| $ | 191,286,646 |
| $ | 37,281,710 |
| $ | 99,189,531 |
| $ | 12,549,586 |
| $ | 15,755,615 |
|
|
|
|
|
|
|
| ||||||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 13,682,796 |
|
| 2,210,529 |
|
| 2,899,791 |
|
| 1,167,386 |
|
| 749,406 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 191,286,646 |
|
| 37,281,710 |
|
| 99,189,531 |
|
| 12,549,586 |
|
| 15,755,615 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 13.98 |
| $ | 16.87 |
| $ | 34.21 |
| $ | 10.75 |
| $ | 21.02 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
47
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Six Months Ended December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
| Large Cap |
| Mid Cap |
| |||
|
| Balanced |
| Growth |
| Growth |
| Growth |
| ||||
|
| Fund |
| Fund |
| Fund |
| Fund |
| ||||
|
|
|
|
|
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 84,289 |
| $ | 378,669 |
| $ | 771,701 |
| $ | 535,345 |
|
Interest |
|
| 118,049 |
|
| 27,987 |
|
| 140,767 |
|
| 369,588 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 202,338 |
|
| 406,656 |
|
| 912,468 |
|
| 904,933 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 59,448 |
|
| 140,276 |
|
| 507,641 |
|
| 1,170,046 |
|
12b-1 Fee - Class S |
|
| — |
|
| 838 |
|
| — |
|
| — |
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
| (93,604 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 59,448 |
|
| 141,114 |
|
| 507,641 |
|
| 1,076,442 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 142,890 |
|
| 265,542 |
|
| 404,827 |
|
| (171,509 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments : |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 240,813 |
|
| 610,202 |
|
| 2,847,851 |
|
| 12,390,924 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 501,012 |
|
| 2,108,618 |
|
| 4,807,698 |
|
| 1,412,730 |
|
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| 741,825 |
|
| 2,718,820 |
|
| 7,655,549 |
|
| 13,803,654 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 884,715 |
| $ | 2,984,362 |
| $ | 8,060,376 |
| $ | 13,632,145 |
|
|
|
|
|
|
|
|
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Science and |
| Developing |
| ||
|
| International |
| Small Cap |
| Technology |
| Markets |
| ||||
|
| Growth |
| Growth |
| Growth |
| Growth |
| ||||
|
| Fund |
| Fund |
| Fund |
| Fund |
| ||||
|
|
|
|
|
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 311,390 |
| $ | 152,589 |
| $ | 26,136 |
| $ | 146,713 |
|
Interest |
|
| 22,457 |
|
| 125,373 |
|
| 8,269 |
|
| 9,078 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 333,847 |
|
| 277,962 |
|
| 34,405 |
|
| 155,791 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 325,913 |
|
| 746,557 |
|
| 95,294 |
|
| 140,406 |
|
12b-1 Fee - Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Less fees and expenses absorbed by investment adviser |
|
| (61,659 | ) |
| — |
|
| (9,529 | ) |
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 264,254 |
|
| 746,557 |
|
| 85,765 |
|
| 140,406 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 69,593 |
|
| (468,595 | ) |
| (51,360 | ) |
| 15,385 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments : |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 468,256 |
|
| 2,339,567 |
|
| 506,495 |
|
| 455,127 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 2,858,414 |
|
| 63,262 |
|
| 448,587 |
|
| 2,323,270 |
|
Realized gain (loss) on foreign currency transactions |
|
| (1,197 | ) |
| — |
|
| — |
|
| (377 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| 3,325,473 |
|
| 2,402,829 |
|
| 955,082 |
|
| 2,778,020 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| $ | 3,395,066 |
| $ | 1,934,234 |
| $ | 903,722 |
| $ | 2,793,405 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
49
|
|
|
|
|
| Sit Mutual Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| ||||||||
|
| Fund |
| Growth Fund |
| ||||||||
|
|
|
| ||||||||||
|
| Six Months |
|
|
|
| Six Months |
|
|
|
| ||
|
| Ended |
|
|
|
| Ended |
|
|
|
| ||
|
| December 31, |
| Year ended |
| December 31, |
| Year ended |
| ||||
|
| 2006 |
| June 30, |
| 2006 |
| June 30, |
| ||||
|
| (Unaudited) |
| 2006 |
| (Unaudited) |
| 2006 |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 142,890 |
| $ | 216,169 |
| $ | 265,542 |
| $ | 410,743 |
|
Net realized gain (loss) on investments |
|
| 240,813 |
|
| 557,766 |
|
| 610,202 |
|
| 333,820 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 501,012 |
|
| (46,730 | ) |
| 2,108,618 |
|
| 1,571,176 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
| 884,715 |
|
| 727,205 |
|
| 2,984,362 |
|
| 2,315,739 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (201,000 | ) |
| (212,000 | ) |
| (361,209 | ) |
| (360,567 | ) |
Class S |
|
| — |
|
| — |
|
| (12,791 | ) |
| (432 | ) |
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| (421,852 | ) |
| (225,199 | ) |
Class S |
|
| — |
|
| — |
|
| (39,234 | ) |
| — |
|
|
|
|
|
|
| ||||||||
Total distributions |
|
| (201,000 | ) |
| (212,000 | ) |
| (835,086 | ) |
| (586,198 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 879,217 |
|
| 1,107,413 |
|
| 4,688,284 |
|
| 9,310,708 |
|
Class S |
|
| — |
|
| — |
|
| 2,589,959 |
|
| 148,812 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 199,517 |
|
| 210,264 |
|
| 751,587 |
|
| 553,551 |
|
Class S |
|
| — |
|
| — |
|
| 52,025 |
|
| 432 |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (1,376,891 | ) |
| (2,467,234 | ) |
| (2,571,842 | ) |
| (1,650,145 | ) |
Class S |
|
| — |
|
| — |
|
| (28,675 | ) |
| (103,054 | ) |
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (298,157 | ) |
| (1,149,557 | ) |
| 5,481,338 |
|
| 8,260,304 |
|
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| 385,558 |
|
| (634,352 | ) |
| 7,630,614 |
|
| 9,989,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 11,616,894 |
|
| 12,251,246 |
|
| 24,185,512 |
|
| 14,195,667 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 12,002,452 |
| $ | 11,616,894 |
| $ | 31,816,126 |
|
| 24,185,512 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 57,650 |
|
| 72,829 |
|
| 370,614 |
|
| 791,386 |
|
Class S |
|
| — |
|
| — |
|
| 197,358 |
|
| 12,109 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 12,836 |
|
| 13,980 |
|
| 57,605 |
|
| 47,474 |
|
Class S |
|
| — |
|
| — |
|
| 3,926 |
|
| 35 |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (88,411 | ) |
| (163,103 | ) |
| (198,216 | ) |
| (140,037 | ) |
Class S |
|
| — |
|
| — |
|
| (2,221 | ) |
| (8,200 | ) |
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| (17,925 | ) |
| (76,294 | ) |
| 429,066 |
|
| 702,767 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | — |
| $ | 56,964 |
| $ | 5,408 |
| $ | 113,866 |
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| ||||||||||||
|
| Growth Fund |
| Growth Fund |
| Growth Fund |
| ||||||||||||
|
|
|
|
| |||||||||||||||
|
| Six Months |
|
|
|
| Six Months |
|
|
|
| Six Months |
|
|
|
| |||
|
| Ended |
|
|
|
| Ended |
|
|
|
| Ended |
|
|
|
| |||
|
| December 31, |
| Year ended |
| December 31, |
| Year ended |
| December 31, |
| Year ended |
| ||||||
|
| 2006 |
| June 30, |
| 2006 |
| June 30, |
| 2006 |
| June 30, |
| ||||||
|
| (Unaudited) |
| 2006 |
| (Unaudited) |
| 2006 |
| (Unaudited) |
| 2006 |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 404,827 |
| $ | 396,309 |
| ($ | 171,509 | ) | ($ | 71,694 | ) | $ | 69,593 |
| $ | 307,462 |
|
Net realized gain (loss) on investments |
|
| 2,847,851 |
|
| 2,613,549 |
|
| 12,390,924 |
|
| 25,755,297 |
|
| 468,256 |
|
| 1,367,545 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 4,807,698 |
|
| 3,560,526 |
|
| 1,412,730 |
|
| 3,751,384 |
|
| 2,858,414 |
|
| 5,615,497 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (1,197 | ) |
| (2,930 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 8,060,376 |
|
| 6,570,384 |
|
| 13,632,145 |
|
| 29,434,987 |
|
| 3,395,066 |
|
| 7,287,574 |
|
|
|
|
|
|
|
|
| ||||||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (730,000 | ) |
| (142,009 | ) |
| — |
|
| — |
|
| (326,000 | ) |
| (155,624 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
Total distributions |
|
| (730,000 | ) |
| (142,009 | ) |
| — |
|
| — |
|
| (326,000 | ) |
| (155,624 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 12,651,893 |
|
| 48,327,703 |
|
| 2,828,726 |
|
| 32,211,296 |
|
| 1,419,568 |
|
| 3,805,246 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 717,055 |
|
| 139,973 |
|
| — |
|
| — |
|
| 315,077 |
|
| 150,321 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (15,641,957 | ) |
| (22,683,527 | ) |
| (16,715,374 | ) |
| (69,554,035 | ) |
| (2,221,544 | ) |
| (5,539,961 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (2,273,009 | ) |
| 25,784,149 |
|
| (13,886,648 | ) |
| (37,342,739 | ) |
| (486,899 | ) |
| (1,584,394 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Total increase (decrease) in net assets |
|
| 5,057,367 |
|
| 32,212,524 |
|
| (254,503 | ) |
| (7,907,752 | ) |
| 2,582,167 |
|
| 5,547,556 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 101,872,868 |
|
| 69,660,344 |
|
| 191,541,149 |
|
| 199,448,901 |
|
| 34,699,543 |
|
| 29,151,987 |
|
|
|
|
|
|
|
|
| ||||||||||||
End of period * |
| $ | 106,930,235 |
| $ | 101,872,868 |
| $ | 191,286,646 |
| $ | 191,541,149 |
| $ | 37,281,710 |
| $ | 34,699,543 |
|
|
|
|
|
|
|
| �� |
| |||||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 328,944 |
|
| 1,281,385 |
|
| 217,036 |
|
| 2,494,929 |
|
| 87,853 |
|
| 259,299 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 17,541 |
|
| 3,705 |
|
| — |
|
| — |
|
| 18,755 |
|
| 10,475 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (410,270 | ) |
| (608,057 | ) |
| (1,260,365 | ) |
| (5,452,712 | ) |
| (137,355 | ) |
| (396,344 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
Net increase (decrease) |
|
| (63,785 | ) |
| 677,033 |
|
| (1,043,329 | ) |
| (2,957,783 | ) |
| (30,747 | ) |
| (126,570 | ) |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | 7,682 |
| $ | 332,855 |
| $ | — |
| $ | — |
| $ | 46,361 |
| $ | 302,768 |
|
See accompanying notes to financial statements on page 54.
51
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Statements of Changes in Net Assets (continued) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Cap |
| Science and Technology |
| ||||||||
|
| Growth Fund |
| Growth Fund |
| ||||||||
|
|
|
| ||||||||||
|
| Six Months |
|
|
| Six Months |
|
|
|
| |||
|
| Ended |
|
|
|
| Ended |
|
|
|
| ||
|
| December 31, |
| Year ended |
| December 31, |
| Year ended |
| ||||
|
| 2006 |
| June 30, |
| 2006 |
| June 30, |
| ||||
|
| (Unaudited) |
| 2006 |
| (Unaudited) |
| 2006 |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| ($ | 468,595 | ) | ($ | 1,500,439 | ) | ($ | 51,360 | ) | ($ | 106,802 | ) |
Net realized gain (loss) on investments |
|
| 2,339,567 |
|
| 65,957,997 |
|
| 506,495 |
|
| 1,360,505 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 63,262 |
|
| (22,453,267 | ) |
| 448,587 |
|
| 256,256 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 1,934,234 |
|
| 42,004,291 |
|
| 903,722 |
|
| 1,509,959 |
|
|
|
|
|
|
| ||||||||
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 |
|
| 2,653,320 |
|
| 67,113,600 |
|
| 177,903 |
|
| 993,856 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (12,374,970 | ) |
| (182,685,874 | ) |
| (1,556,427 | ) |
| (4,021,634 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (9,721,650 | ) |
| (115,572,274 | ) |
| (1,378,524 | ) |
| (3,027,778 | ) |
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| (7,787,416 | ) |
| (73,567,983 | ) |
| (474,802 | ) |
| (1,517,819 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 106,976,947 |
|
| 180,544,930 |
|
| 13,024,388 |
|
| 14,542,207 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 99,189,531 |
| $ | 106,976,947 |
| $ | 12,549,586 |
| $ | 13,024,388 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 80,248 |
|
| 2,134,112 |
|
| 17,273 |
|
| 94,836 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (377,215 | ) |
| (5,446,229 | ) |
| (149,097 | ) |
| (387,380 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| (296,967 | ) |
| (3,312,117 | ) |
| (131,824 | ) |
| (292,544 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Developing Markets |
| ||||
|
| Growth Fund |
| ||||
|
|
| |||||
|
| Six Months |
|
|
|
| |
|
| Ended |
|
|
| ||
|
| December 31, |
| Year ended |
| ||
|
| 2006 |
| June 30, |
| ||
|
| (Unaudited) |
| 2006 |
| ||
|
|
|
| ||||
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 15,385 |
| $ | 33,508 |
|
Net realized gain (loss) on investments |
|
| 455,127 |
|
| 1,505,004 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 2,323,270 |
|
| 2,399,673 |
|
Net realized gain (loss) on foreign currency transactions |
|
| (377 | ) |
| (239 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
|
| 2,793,405 |
|
| 3,937,946 |
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Class I |
|
| (35,000 | ) |
| (51,306 | ) |
Class S |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
|
|
|
| ||||
Total distributions |
|
| (35,000 | ) |
| (51,306 | ) |
|
|
|
| ||||
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
Class I |
|
| 1,565,330 |
|
| 8,600,888 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 34,063 |
|
| 50,380 |
|
Class S |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
Class I |
|
| (1,659,459 | ) |
| (10,055,526 | ) |
Class S |
|
| — |
|
| — |
|
|
|
|
| ||||
Increase (decrease) in net assets from capital share transactions |
|
| (60,066 | ) |
| (1,404,258 | ) |
|
|
|
| ||||
Total increase (decrease) in net assets |
|
| 2,698,339 |
|
| 2,482,382 |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 13,057,276 |
|
| 10,574,894 |
|
|
|
|
| ||||
End of period * |
| $ | 15,755,615 |
| $ | 13,057,276 |
|
|
|
|
| ||||
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
Class I |
|
| 83,347 |
|
| 533,524 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 1,642 |
|
| 3,193 |
|
Class S |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
Class I |
|
| (86,887 | ) |
| (600,702 | ) |
Class S |
|
| — |
|
| — |
|
|
|
|
| ||||
Net increase (decrease) |
|
| (1,898 | ) |
| (63,985 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
* includes undistributed net investment income |
| $ | 13,654 |
| $ | 33,269 |
|
See accompanying notes to financial statements on page 54.
53
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
(1) | Summary of Significant Accounting Policies |
|
|
| Sit Mutual Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Developing Markets Growth, Sit Small Cap Growth, Sit Dividend Growth, Sit International Growth, Sit Balanced, and Sit Science and Technology Growth Funds are series funds of Sit Mutual Funds, Inc. |
|
|
| This report covers the equity funds of the Sit Mutual Funds (the Funds). Each fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows: |
|
|
Fund | Investment Objective |
Balanced | Long-term 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. |
|
|
| 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, the 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. |
|
|
| Significant accounting policies followed by the Funds are summarized below: |
|
|
| Short-Term Trading (Redemption) Fees |
| The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. |
54
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| 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. |
|
|
| Security transactions are accounted for on the date the securities are purchased or sold. Securities gains and losses are calculated on the identified-cost basis. Dividend income is recorded on the ex-dividend date or upon the receipt of ex-dividend notification in the case of certain foreign securities. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. |
|
|
| Line of Credit |
| The Funds have a $25,000,000 committed line of credit through PNC Bank, N.A., whereby the Funds may borrow for the temporary funding of shareholder redemptions or for other temporary purposes. Interest is charged to each Fund based on its borrowings at a rate equal to the Federal Funds Rate plus fifty basis points (0.50%). The Funds had no borrowings outstanding during the year ended December 31, 2006. |
|
|
| Illiquid Securities |
| Each Fund currently limits investments in illiquid securities to 15% of net assets. At December 31, 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. |
|
|
| Foreign Currency Translations and Forward Foreign Currency Contracts |
| The market value of securities and other assets and liabilities denominated in foreign currencies for Developing Markets Growth Fund and International Growth Fund are translated daily into U.S. dollars at the closing rate of exchange (approximately 12:30 p.m. E.S.T). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses. |
|
|
| The Developing Markets Growth and International Growth Funds may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting |
55
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| 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. |
|
|
| Federal Taxes |
| The Funds’ policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to shareholders. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis. |
|
|
| Net investment income and net realized gains differ for financial statement and tax purposes because of losses deferred due to “wash sale” transactions. A “wash sale” occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). |
| The character of distributions made during the year from net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. |
|
|
| 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 & Technology Growth |
|
|
| 20,716,461 |
|
| 2010-2013 |
|
|
| Developing Markets Growth |
|
|
| 892,601 |
|
| 2008-2015 |
|
|
|
|
| Distributions |
| Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds’ capital stock. Distributions from net investment income, if any, are declared and paid quarterly for the Balanced and Dividend Growth Funds and declared and paid annually for Science and Technology Growth, Developing Markets Growth, Small Cap Growth, International Growth, Mid Cap Growth, and Large Cap Growth Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds. |
|
|
| Concentration of Investments |
| The Developing Markets Growth Fund may concentrate investments in countries with limited or developing capital markets which may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund’s investments and the income it generates, as well as the Fund’s ability to repatriate such amounts. |
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| Use of Estimates |
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. |
| Actual results could differ from those estimates. |
|
|
(2) | Investment Security Transactions |
| Purchases of and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended December 31, 2006, were as follow: |
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| ||
| Balanced Fund |
| 1,983,801 |
|
| 2,348,129 |
|
|
| Dividend Growth |
| 8,873,280 |
|
| 4,259,592 |
|
|
| Large Cap Growth Fund |
| 13,736,215 |
|
| 15,915,895 |
|
|
| Mid Cap Growth Fund |
| 31,762,318 |
|
| 39,031,718 |
|
|
| International Growth Fund |
| 3,136,735 |
|
| 3,323,360 |
|
|
| Small Cap Growth Fund |
| 18,733,775 |
|
| 23,419,001 |
|
|
| Science and Technology Growth Fund |
| 2,197,343 |
|
| 3,308,187 |
|
|
| Developing Markets Growth Fund |
| 1,628,896 |
|
| 1,642,522 |
|
|
|
|
(3) | Expenses |
| Investment Adviser |
| The Funds each have entered into an investment management agreement with Sit Investment Associates, Inc. (SIA), under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. The current fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of: |
|
|
|
|
|
|
|
|
|
|
|
| Contractural |
| Management Fee |
| ||
| Balanced Fund |
| 1.00 | % |
| 1.00 | % |
|
| Dividend Growth Fund Class I and Class S |
| 1.00 | % |
| 1.00 | % |
|
| Large Cap Growth Fund |
| 1.00 | % |
| 1.00 | % |
|
| Mid Cap Growth Fund |
| 1.25 | % |
| 1.15 | % |
|
| International Growth Fund |
| 1.85 | % |
| 1.50 | % |
|
| Small Cap Growth Fund |
| 1.50 | % |
| 1.50 | % |
|
| Science and Technology Growth Fund |
| 1.50 | % |
| 1.35 | % |
|
| Developing Markets Growth Fund |
| 2.00 | % |
| 2.00 | % |
|
|
|
| SIA is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions and other transaction charges relating to investing activities). |
|
|
| 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 related to the sale and distribution of its shares. |
57
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| For the periods through December 31, 2007 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. |
|
|
| The Funds invest in the Sit Money Market Fund. The terms of such transactions were identical to those of non-related entities except that, to avoid duplicate investment advisory fees, SIA remits to each Fund an amount equal to all fees otherwise due to them under their investment management agreement for the assets invested in the Sit Money Market Fund. The Funds owned the following shares as of December 31, 2006: |
|
|
|
|
Fund |
| Shares |
|
Balanced Fund |
| 14,000 |
|
Dividend Growth Fund |
| 989,000 |
|
Large Cap Growth Fund |
| 4,925,000 |
|
Mid Cap Growth Fund |
| 7,989,000 |
|
International Growth Fund |
| 231,000 |
|
Small Cap Growth Fund |
| 1,000 |
|
Science and Technology Growth Fund |
| 89,000 |
|
Developing Markets Growth Fund |
| 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 $167,105 were paid or payable to SKI for the period ended December 31, 2006. |
58
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| Transactions with affiliates |
| The investment adviser, affiliates of the investment adviser, directors and officers of the Funds as a whole owned the following shares as of December 31, 2006: |
|
|
|
|
|
|
|
|
|
|
|
|
| % Shares |
| |
|
| Shares |
| Outstanding |
| ||
Balanced Fund |
| 212,372 |
|
| 28.3 |
|
|
Dividend Growth Fund |
| 625,177 |
|
| 26.0 |
|
|
Large Cap Growth Fund |
| 470,144 |
|
| 17.8 |
|
|
Mid Cap Growth Fund |
| 3,006,828 |
|
| 22.0 |
|
|
International Growth Fund |
| 754,676 |
|
| 34.1 |
|
|
Small Cap Growth Fund |
| 861,658 |
|
| 29.7 |
|
|
Science and Technology Growth Fund |
| 550,630 |
|
| 47.2 |
|
|
Developing Markets Growth Fund |
| 176,310 |
|
| 23.5 |
|
|
59
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
| |||||||||||
|
|
|
|
| ||||||||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
| $ | 12.29 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (2) |
|
| .19 |
|
| .28 |
|
| .26 |
|
| .21 |
|
| .29 |
|
Net realized and unrealized gains (losses) on investments |
|
| .95 |
|
| .59 |
|
| .73 |
|
| 1.34 |
|
| .22 |
|
Total from operations |
|
| 1.14 |
|
| .87 |
|
| .99 |
|
| 1.55 |
|
| .51 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.26 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.26 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 16.02 |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
|
Total investment return (1) |
|
| 7.62 | % |
| 6.03 | % |
| 7.28 | % |
| 12.53 | % |
| 4.43 | % |
Net assets at end of period (000’s omitted) |
| $ | 12,002 |
| $ | 11,617 |
| $ | 12,251 |
| $ | 12,441 |
| $ | 16,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income to average daily net assets |
|
| 2.40 | % (3) |
| 1.84 | % |
| 1.84 | % |
| 1.58 | % |
| 2.54 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 16.90 | % |
| 50.00 | % |
| 36.32 | % |
| 44.82 | % |
| 48.86 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(3) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. |
60
|
|
|
|
|
| Sit Dividend Growth Fund Class I |
| ![]() |
|
|
|
|
| |
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
|
|
|
| |||||
|
|
|
|
| Six months |
| |||||||
|
|
| Years Ended June 30, |
|
| ||||||||
|
|
|
|
| |||||||||
|
|
| 2006 |
| 2005 |
|
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .12 |
|
| .25 |
|
| .21 |
|
| .08 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.24 |
|
| 1.20 |
|
| 1.01 |
|
| .10 |
|
Total from operations |
|
| 1.36 |
|
| 1.45 |
|
| 1.22 |
|
| .18 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.17 | ) |
| (.23 | ) |
| (.18 | ) |
| (.04 | ) |
From net realized gains |
|
| (.20 | ) |
| (.14 | ) |
| — |
|
| — |
|
Total distributions |
|
| (.37 | ) |
| (.37 | ) |
| (.18 | ) |
| (.04 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 13.25 |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
|
Total investment return (1) |
|
| 11.15 | % |
| 13.20 | % |
| 12.12 | % |
| 1.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 29,129 |
| $ | 24,137 |
| $ | 14,196 |
| $ | 6,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 1.88 | % (3) |
| 2.09 | % |
| 1.94 | % |
| 1.79 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 15.59 | % (4) |
| 41.28 | % (4) |
| 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. |
|
|
(4) | The turnover rate presented is for the entire fund. |
See accompanying notes to financial statements on page 54.
61
|
|
|
|
|
| Sit Dividend Growth Fund Class S |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
| Three months |
| ||
Net Asset Value: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 12.26 |
| $ | 12.28 |
|
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .12 |
|
| .05 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.22 |
|
| (.02 | ) |
Total from operations |
|
| 1.34 |
|
| .03 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (.16 | ) |
| (.05 | ) |
From net realized gains |
|
| (.20 | ) |
| — |
|
Total distributions |
|
| (.36 | ) |
| (.05 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
End of period |
| $ | 13.24 |
| $ | 12.26 |
|
Total investment return (1) |
|
| 10.95 | % |
| 0.27 | % |
Net assets at end of period (000’s omitted) |
| $ | 2,688 |
| $ | 48 |
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.25 | % (3) |
| 1.25 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 1.63 | % (3) |
| 1.84 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 15.59 | % (4) |
| 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. |
62
|
|
|
|
|
| Sit Large Cap Growth Fund |
| ![]() |
|
|
|
|
| |
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
| $ | 26.40 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .15 |
|
| .17 |
|
| .16 |
|
| .01 |
|
| .02 |
|
Net realized and unrealized gains (losses) on investments |
|
| 2.94 |
|
| 3.23 |
|
| 2.27 |
|
| 5.05 |
|
| .50 |
|
Total from operations |
|
| 3.09 |
|
| 3.40 |
|
| 2.43 |
|
| 5.06 |
|
| .52 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 40.41 |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
|
Total investment return (1) |
|
| 8.20 | % |
| 9.91 | % |
| 7.62 | % |
| 18.81 | % |
| 1.97 | % |
Net assets at end of period (000’s omitted) |
| $ | 106,930 |
| $ | 101,873 |
| $ | 69,660 |
| $ | 63,774 |
| $ | 59,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.80 | % (3) |
| 0.46 | % |
| 0.49 | % |
| 0.02 | % |
| 0.08 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 14.14 | % |
| 23.71 | % |
| 23.22 | % |
| 29.71 | % |
| 33.40 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(3) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. |
See accompanying notes to financial statements on page 54.
63
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
| |||||||||||
|
|
|
|
| ||||||||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
| $ | 7.91 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (3) |
|
| (.01 | ) |
| — |
|
| (.07 | ) |
| (.07 | ) |
| (.05 | ) |
Net realized and unrealized gains (losses) on investments |
|
| .98 |
|
| 1.73 |
|
| 1.12 |
|
| 2.24 |
|
| .20 |
|
Total from operations |
|
| .97 |
|
| 1.73 |
|
| 1.05 |
|
| 2.17 |
|
| .15 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 13.98 |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
|
Total investment return (1) |
|
| 7.46 | % |
| 15.34 | % |
| 10.26 | % |
| 26.92 | % |
| 1.90 | % |
Net assets at end of period (000’s omitted) |
| $ | 191,287 |
| $ | 191,541 |
| $ | 199,449 |
| $ | 204,946 |
| $ | 170,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| (0.18 | %) (2) |
| (0.03 | %) (2) |
| (0.66 | %) (2) |
| (0.71 | %) (2) |
| (0.73 | %) (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 18.10 | % |
| 32.48 | % |
| 39.74 | % |
| 65.14 | % |
| 53.19 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. Total Fund expenses are contractually limited to 1.25% of average daily net assets. However, during the period ended December 31, 2006 and the years ended June 30, 2006, 2005, 2004, and 2003, 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 (0.28%), (0.13%), (0.76%), (0.81%), and (0.83%), respectively. |
|
|
(3) | The net investment income (loss) per share is based on average shares outstanding for the period. |
64
|
|
|
|
|
| Sit International Growth Fund |
| ![]() |
|
|
|
|
| |
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
| |||||||||||
|
|
|
|
| ||||||||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
| $ | 10.79 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (3) |
|
| .03 |
|
| .14 |
|
| .07 |
|
| .01 |
|
| .07 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.51 |
|
| 3.10 |
|
| 1.03 |
|
| 1.92 |
|
| (1.47 | ) |
Total from operations |
|
| 1.54 |
|
| 3.24 |
|
| 1.10 |
|
| 1.93 |
|
| (1.40 | ) |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 16.87 |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
|
Total investment return (1) |
|
| 9.94 | % |
| 26.37 | % |
| 9.80 | % |
| 20.63 | % |
| (12.97 | %) |
Net assets at end of period (000’s omitted) |
| $ | 37,282 |
| $ | 34,700 |
| $ | 29,152 |
| $ | 34,281 |
| $ | 48,533 |
|
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|
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Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
Net investment income (loss) to average daily net assets |
|
| 0.39 | % (2) |
| 0.95 | % (2) |
| 0.56 | % (2) |
| 0.14 | % (2) |
| 0.81 | % (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 8.97 | % |
| 20.21 | % |
| 28.27 | % |
| 44.37 | % |
| 21.02 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. Total Fund expenses are contractually limited to 1.85% of average daily net assets. However, during the period ended December 31, 2006 and the years ended June 30, 2006, 2005, 2004, and 2003, 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 0.04%, 0.60%, 0.21%, (0.21%), and 0.46%, 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.
65
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| Sit Small Cap Growth Fund |
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| Financial Highlights |
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| Six months |
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| Years Ended June 30, |
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| |||||||||||||
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
| $ | 21.06 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| (.15 | ) |
| (.23 | ) |
| (.27 | ) |
| (.27 | ) |
| (.18 | ) |
Net realized and unrealized gains (losses) on investments |
|
| .90 |
|
| 5.95 |
|
| 2.72 |
|
| 3.92 |
|
| .76 |
|
Total from operations |
|
| .75 |
|
| 5.72 |
|
| 2.45 |
|
| 3.65 |
|
| .58 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 34.21 |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
|
Total investment return (1) |
|
| 2.24 | % |
| 20.62 | % |
| 9.69 | % |
| 16.87 | % |
| 2.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 99,190 |
| $ | 106,977 |
| $ | 180,545 |
| $ | 199,810 |
| $ | 182,912 |
|
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|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.50 | % (3) |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
Net investment income (loss) to average daily net assets |
|
| (0.94 | %) (3) |
| (0.67 | %) |
| (1.08 | %) |
| (1.10 | %) |
| (1.00 | %) |
Portfolio turnover rate (excluding short-term securities) |
|
| 22.55 | % |
| 54.73 | % |
| 33.75 | % |
| 65.79 | % |
| 59.98 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(3) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. |
66
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|
|
| Sit Science and Technology Growth Fund |
| ![]() |
|
|
|
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| |
| Financial Highlights |
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| Six months |
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| |||||||||||
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| ||||||||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
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| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 10.02 |
| $ | 9.14 |
| $ | 10.02 |
| $ | 8.05 |
| $ | 7.52 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (3) |
|
| (.04 | ) |
| (.08 | ) |
| (.09 | ) |
| (.11 | ) |
| (.07 | ) |
Net realized and unrealized gains (losses) on investments |
|
| .77 |
|
| .96 |
|
| (.79 | ) |
| 2.08 |
|
| .60 |
|
Total from operations |
|
| .73 |
|
| .88 |
|
| (.88 | ) |
| 1.97 |
|
| .53 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 10.75 |
| $ | 10.02 |
| $ | 9.14 |
| $ | 10.02 |
| $ | 8.05 |
|
Total investment return (1) |
|
| 7.29 | % |
| 9.63 | % |
| (8.78% | ) |
| 24.47 | % |
| 7.05 | % |
Net assets at end of period (000’s omitted) |
| $ | 12,550 |
| $ | 13,024 |
| $ | 14,542 |
| $ | 19,054 |
| $ | 15,200 |
|
|
|
|
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|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
| 1.35 | % (2) |
Net investment income (loss) to average net assets |
|
| (0.81 | %) (2) |
| (0.73 | %) (2) |
| (0.99 | )% (2) |
| (1.20 | %) (2) |
| (1.05 | %) (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 17.48 | % |
| 31.35 | % |
| 37.55 | % |
| 55.54 | % |
| 49.67 | % |
|
|
|
(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) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. Total Fund expenses are contractually limited to 1.50% of average daily net assets. However, during the period ended December 31, 2006 and the years ended June 30, 2006, 2005, 2004, and 2003, 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 (0.96%), (0.88%), (1.14%), (1.35%), and (1.20%), 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
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|
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|
|
| Sit Developing Markets Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
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| Six months |
|
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| |||||
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| ||||||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
|
| |||||||||||||
|
|
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
| $ | 8.10 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .02 |
|
| .04 |
|
| .06 |
|
| .04 |
|
| .02 |
|
Net realized and unrealized gains (losses) on investments |
|
| 3.67 |
|
| 4.43 |
|
| 3.04 |
|
| 1.78 |
|
| — |
|
Total from operations |
|
| 3.69 |
|
| 4.47 |
|
| 3.10 |
|
| 1.82 |
|
| .02 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 21.02 |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
|
Total investment return (1) |
|
| 21.22 | % |
| 34.47 | % |
| 31.32 | % |
| 22.48 | % |
| 0.25 | % |
Net assets at end of period (000’s omitted) |
| $ | 15,756 |
| $ | 13,057 |
| $ | 10,575 |
| $ | 8,030 |
| $ | 8,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 2.00 | % (3) |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.22 | % (3) |
| 0.24 | % |
| 0.55 | % |
| 0.37 | % |
| 0.31 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 11.92 | % |
| 27.38 | % |
| 29.54 | % |
| 33.72 | % |
| 6.61 | % |
|
|
|
(1) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(2) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(3) | Percentages for the period ended December 31, 2006 are adjusted to an annual rate. |
See accompanying notes to financial statements on page 54.
68
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| |
|
| |||
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| |
| ||
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As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
Actual Expenses
Hypothetical Example for Comparison Purposes
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs (redemption fees) were included, your costs would have been higher.
|
|
|
|
Balanced Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,076.20 | $5.20 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
|
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|
|
Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,111.50 | $5.29 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
69
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| Expense Example (Continued) |
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Dividend Growth Fund Class S | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,109.50 | $6.61 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.75 | $6.33 |
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|
|
Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,082.00 | $5.22 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
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|
|
Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,074.60 | $5.98 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.25 | $5.82 |
|
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|
|
International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,099.40 | $7.89 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.59 |
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|
|
Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,022.40 | $7.60 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.59 |
70
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Science and Technology Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,072.90 | $7.02 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.25 | $6.83 |
|
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|
|
Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,212.20 | $11.09 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.00 | $10.10 |
71
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| PROXY VOTING |
|
|
| Each Fund follows certain policies and procedures for voting proxies for securities held in each portfolio. A description of the Funds’ proxy voting polices and procedures is available without charge upon request by calling the Funds at 1-800-332-5580. |
| Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available 1) without charge upon request by calling the Funds at 1-800-332-5580; and 2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. |
|
|
| AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES |
|
|
| The Funds’ annual and semi-annual reports include complete lists of each portfolio’s holdings. For the first and third quarters of each fiscal year, the Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) on Forms N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580. |
|
|
| REAPPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS AND SUB-ADVISORY AGREEMENTS |
|
|
| At their joint meeting held on October 23, 2006 the Boards of Directors of the Sit Mutual Funds unanimously approved the continuation for another one year period the investment management agreements entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mid Cap Growth Fund, Inc. dated November 1, 1996; Sit Large Cap Growth Fund, Inc. dated November 1, 1996; Sit Mutual Funds Inc., dated November 1, 1992; (the “Advisory Agreements”); and with respect to the Sit International Growth Fund and the Sit Developing Markets Growth Fund, also unanimously approved the continuation for another one year period the sub-advisory agreements entered into by and between SIA and Sit/Kim International Investment Associates, Inc. (“Sit/Kim”) dated March 31, 1992 and March 31, 1994 (the “Sub-Advisory Agreements, ” and the Advisory Agreements and Sub-Advisory Agreements jointly referred to as the “Agreements”). |
| The Boards approved the Agreements after a lengthy discussion and consideration of various factors relating to both the Boards’ selection of SIA as the investment adviser and Sit/Kim as the sub-adviser, and the Boards’ approval of the fees to be paid under the Agreements. Reference to SIA includes Sit/Kim with respect to the Sit International Growth Fund and the Sit Developing Markets Growth Fund. |
|
|
| Investment Adviser Criteria |
| The Directors began their analysis by discussing their criteria for determining the quality of an investment adviser. The Directors’ noted that their analysis is similar to that used by institutional investors in evaluating and selecting |
72
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| investment advisers. The Directors discussed several factors used to determine the overall quality of an investment adviser, including the following: |
|
|
| Investment Philosophy and Process |
| The Directors considered SIA’s philosophy of managing assets. With respect to equity securities, SIA identifies growth-oriented securities issued by companies with the potential for earnings growth at a faster rate than the general economy and market index. SIA believes that earnings growth is the primary determinant of superior long-term returns for equity securities, and invests in companies it believes exhibit above market and consistent growth as well as conservative and cyclical growth companies. SIA’s actively managed portfolios not only concentrate on the best growth opportunities but do so at reasonable valuation levels. The Directors determined that the Stock Funds’ investment objectives are consistent with SIA’s investment philosophy and growth style. The Directors reviewed the Stock Funds’ portfolio characteristics, and noted that SIA has consistently managed the Stock Funds in a growth style and the Directors found no indication of style drift away from growth stocks over market cycles. The Directors noted that recent years during which growth stocks have under-performed relative to value stocks, many funds with a stated growth style objective have actually strayed from the growth style and invested a portion of their portfolios in value stocks. This has been especially true with funds investing in international equity securities. In these instances, the Stock Funds may at times not rank favorably in comparisons with other funds investing in value stocks because the Stock Funds were disciplined in maintaining their growth style. |
| The Directors discussed SIA’s consistent and well-defined investment process. With respect to equity securities, SIA utilizes a team based top-down and bottom-up investment decision making process. |
|
|
| Investment Professionals |
| The Directors discussed the experience, knowledge and organizational stability of SIA and its investment professionals. The Directors noted that SIA’s senior founding professionals are actively involved in the investment process and have led the organization since its inception in 1981 which has provided not only organizational stability, but a consistent portfolio management style. The senior professionals of SIA are among the most experienced professionals in the industry. |
| The Directors discussed the depth of SIA’s investment staff. The Directors noted that SIA has over 30 investment professionals. Given the investment products offered by SIA and the assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients, including the Funds, and to accommodate growth in the number of clients and assets under management for the near future. The Directors concluded that the depth of the investment staff, and in particular senior management and investment analysts, is actually greater than the Funds currently require at their present asset size. The Directors noted that SIA has the resources of a $6.9 billion investment firm working for the benefit of the Fund shareholders. |
|
|
| Investment Performance |
| The Directors reviewed and discussed the Funds’ investment performance on an absolute and comparable basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as equity growth funds. |
73
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| Corporate Culture |
| The Directors discussed SIA’s corporate values to operate under the highest ethical and professional standards. SIA’s culture is set and practiced by senior management who insist that all professionals exhibit honesty and integrity. The Board noted that the firm’s values are evident in all of the services provided to the Funds. |
|
|
| Review of Specific Factors |
| The Directors continued their analysis by reviewing specific information on SIA and the Funds and specific terms of the Agreements, including the following. |
|
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| Investment Performance |
| The Directors reviewed investment performance of each Fund for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to their stated objectives and strategies on a comparable basis with funds with similar objectives and strategies. |
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| Fees and Expenses |
| The Directors noted that the Funds pay SIA a monthly fee and SIA is responsible for all of the Funds’ expenses, except fees paid under a distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class S shares of Sit Dividend Growth Fund, interest, brokerage commissions and transaction charges and certain extraordinary expenses. The Directors reviewed fees paid in prior years and the fees to be paid under the Agreements, both before and after the voluntary waiver of fees by SIA with respect to the Mid Cap Growth Fund, International Growth Fund, and Science & Technology Fund. The Directors reviewed the average and median expense ratios of mutual funds within the same investment category for each Fund. The Directors noted that each Fund’s total expense ratio compares favorably to the total expense ratios of other no-load funds within the Fund’s Morningstar category, and are lower than the average total expense ratio for the full Morningstar category. The Directors concluded that the fees paid by the Funds are reasonable and appropriate. |
| The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund’s assets, which included reviewing each Fund’s current and historical assets and the likelihood and magnitude of future increases in the Fund’s assets. It was noted that three of the fixed-income funds have tiered investment fee schedules after SIA’s voluntary fee waiver. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds’ assets increase. However, the Directors concluded that given the limited size of the Funds, negotiating a graduated fee structure for each Fund is unnecessary since it is unlikely that the size of the Funds will increase enough to justify a graduated fee schedule within the near future. |
| The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA’s income with respect to the management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate. |
| The Directors reviewed SIA’s investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients of SIA, and recognized that the Funds’ expenses are borne by SIA. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other SIA clients were appropriate and reasonable. The Directors also concluded that SIA’s profit margin with respect to the management of the Funds was appropriate. |
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| The Directors discussed the extent to which SIA receives benefits from the relationship with the Funds such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Board concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms and are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable. |
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| Non-Advisory Services |
| The Directors considered the quality of non-advisory services which SIA provides to the Funds (and their shareholders) and the quality and depth of SIA’s non-investment personnel who provide such services. Directors concluded that the level of such services and the quality and depth of such personnel are consistent with industry standards. |
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| Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds, and concluded that both are consistent with industry standards. |
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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 $6.9 billion for some of America’s largest corporations, foundations and endowments. | |||
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Sit Mutual Funds are comprised of fourteen 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 |
Developing Markets Growth Fund
Science and Technology Growth Fund
Large Cap Growth Fund
Small Cap Growth Fund
International Growth Fund
Mid Cap Growth Fund
Florida Tax-Free Income Fund
Minnesota Tax-Free Income Fund
Tax-Free Income Fund
U.S. Government Securities Fund
Dividend Growth Fund
Balanced Fund
Money Market Fund
High Growth:
Long-term capital
appreciation
Income:
Increased
income
Growth: Long-term
Capital appreciation
and income
HIGH GROWTH
Lower Risk
Lower Reward
Stability: Safety
of principal and
current income
Higher Risk
Higher Reward
GROWTH
INCOME
STABILITY
76
S E M I - A N N U A L R E P O R T S T O C K F U N D S
Six Months Ended December 31, 2006
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INVESTMENT ADVISER | AUDITORS |
Item 2: Code of Ethics.
Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert.
Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services.
Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant’s internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Large Cap Growth Fund, Inc.
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| Paul E. Rasmussen |
Date February 28, 2007
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.
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| Paul E. Rasmussen |
Date February 28, 2007
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| Eugene C. Sit |
Date February 28, 2007
Item 2: Code of Ethics.
Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert.
Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services.
Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
b) There were no changes in the Registrant’s internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mid Cap Growth Fund, Inc.
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| Paul E. Rasmussen |
Date February 28, 2007
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.
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| Paul E. Rasmussen |
Date February 28, 2007
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| Eugene C. Sit |
Date February 28, 2007
Item 2: Code of Ethics.
Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert.
Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services.
Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant’s internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mutual Funds, Inc.
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| Paul E. Rasmussen |
Date February 28, 2007
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.
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| Paul E. Rasmussen |
Date February 28, 2007
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| Eugene C. Sit |
Date February 28, 2007