UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03342
Sit Mid Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: June 30, 2007
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03343
Sit Large Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: June 30, 2007
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code:
(612) 334-5888
Date of fiscal year end: June 30, 2007
Date of reporting period: June 30, 2007
Item 1: Reports to Stockholders.
|
|
|
Sit Mutual Funds
One Year Ended June 30, 2007
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
|
Sit Mutual Funds |
STOCK FUNDS ANNUAL REPORT |
TABLE OF CONTENTS |
|
|
|
|
|
|
|
|
| Page |
| |
|
|
|
|
| |
| 2 |
|
| ||
|
|
|
|
|
|
| 4 |
|
| ||
|
|
|
|
|
|
| 6 |
|
| ||
|
|
|
|
|
|
| 8 |
|
| ||
|
|
|
|
|
|
| Fund Reviews and Portfolios of Investments |
|
|
| |
|
|
|
|
|
|
|
| 10 |
|
| |
|
|
|
|
|
|
|
| 16 |
|
| |
|
|
|
|
|
|
|
| 20 |
|
| |
|
|
|
|
|
|
|
| 24 |
|
| |
|
|
|
|
|
|
|
| 28 |
|
| |
|
|
|
|
|
|
|
| 32 |
|
| |
|
|
|
|
|
|
|
| 36 |
|
| |
|
|
|
|
|
|
|
| 40 |
|
| |
|
|
|
|
|
|
| 44 |
|
| ||
|
|
|
|
|
|
| 46 |
|
| ||
|
|
|
|
|
|
| 48 |
|
| ||
|
|
|
|
|
|
| 50 |
|
| ||
|
|
|
|
|
|
| 54 |
|
| ||
|
|
|
|
|
|
| 62 |
|
| ||
|
|
|
|
|
|
| 71 |
|
| ||
|
|
|
|
|
|
| 72 |
|
| ||
|
|
|
|
|
|
| 75 |
|
| ||
|
|
|
|
|
|
| 78 |
|
| ||
|
|
|
|
|
|
| 79 |
|
| ||
|
|
|
|
|
|
| 80 |
|
|
|
|
| |
| |
| |
Sit Mutual Funds | |
One Year Ended June 30, 2007 | |
| |
| |
|
Dear Fellow Shareholders:
Surging mergers and acquisitions activity and the continued strength in corporate earnings were among the factors driving U.S. stocks significantly higher over the past twelve months. While a period of consolidation is quite possible after a strong run-up in prices, we believe equity valuations remain reasonable and the corporate profit outlook appears strong enough to provide a solid backdrop for further market gains in the year ahead.
2
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
to boom. Asia (ex Japan), for example, is projected to grow +8% in 2007, driven primarily by the Chinese and Indian economies.
With best wishes,
Eugene C. Sit, CFA
Chairman and Chief Investment Officer
3
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
SIT EQUITY FUNDS |
| 3-Month |
| ||
Balanced SIBAX |
|
| 4.65 | % |
|
S&P 500 Index |
|
| 6.28 |
|
|
Lehman Aggregate Bond Index |
|
| -0.52 |
|
|
Dividend Growth Class I SDVGX |
|
| 6.40 |
|
|
S&P 500 Index |
|
| 6.28 |
|
|
Dividend Growth Class S SDVSX |
|
| 6.27 |
|
|
S&P 500 Index |
|
| 6.28 |
|
|
Large Cap Growth SNIGX |
|
| 7.27 |
|
|
Russell 1000® Growth Index(1) |
|
| 6.86 |
|
|
Mid Cap Growth(2) NBNGX |
|
| 7.82 |
|
|
Russell Midcap® Growth Index(3) |
|
| 6.75 |
|
|
International Growth(4) SNGRX |
|
| 8.59 |
|
|
MSCI EAFE Growth Index(5) |
|
| 6.66 |
|
|
Small Cap Growth(2) SSMGX |
|
| 10.97 |
|
|
Russell 2000® Growth Index(6) |
|
| 6.69 |
|
|
Science & Technology Growth(7) SISTX |
|
| 8.21 |
|
|
NYSE Arca Tech 100 Index |
|
| 7.26 |
|
|
Developing Markets Growth(4) SDMGX |
|
| 14.93 |
|
|
MSCI Emerging Markets Index(6) |
|
| 14.06 |
|
|
*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.
|
|
(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
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
| AVERAGE ANNUAL RETURNS FOR PERIODS ENDED JUNE 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 6-Month |
| 1-Year |
| 3-Year |
| 5-Year |
| 10-Year |
| Since |
| Inception | |||||||
|
| 6.15 | % |
| 14.24 | % |
| 9.12 | % |
| 8.83 | % |
| 5.45 | % |
| 7.85 | % |
| 12/31/93 |
|
|
| 6.96 |
|
| 20.59 |
|
| 11.67 |
|
| 10.71 |
|
| 7.13 |
|
| 11.04 |
|
|
|
|
|
| 0.98 |
|
| 6.12 |
|
| 3.98 |
|
| 4.48 |
|
| 6.02 |
|
| 6.03 |
|
|
|
|
|
| 9.29 |
|
| 21.48 |
|
| 15.52 |
|
| — |
|
| — |
|
| 13.74 |
|
| 12/31/03 |
|
|
| 6.96 |
|
| 20.59 |
|
| 11.67 |
|
| — |
|
| — |
|
| 11.00 |
|
|
|
|
|
| 9.07 |
|
| 21.02 |
|
| — |
|
| — |
|
| — |
|
| 16.75 |
|
| 3/31/06 |
|
|
| 6.96 |
|
| 20.59 |
|
| — |
|
| — |
|
| — |
|
| 14.82 |
|
|
|
|
|
| 8.86 |
|
| 17.79 |
|
| 11.69 |
|
| 11.04 |
|
| 4.42 |
|
| 11.20 |
|
| 9/2/82 |
|
|
| 8.12 |
|
| 19.04 |
|
| 8.70 |
|
| 9.28 |
|
| 4.39 |
|
| 12.04 |
|
|
|
|
|
| 12.37 |
|
| 20.75 |
|
| 15.37 |
|
| 14.71 |
|
| 6.63 |
|
| 13.89 |
|
| 9/2/82 |
|
|
| 10.98 |
|
| 19.73 |
|
| 14.48 |
|
| 15.45 |
|
| 8.66 |
|
| — |
|
|
|
|
|
| 10.85 |
|
| 21.87 |
|
| 19.14 |
|
| 12.16 |
|
| 2.25 |
|
| 6.33 |
|
| 11/1/91 |
|
|
| 11.94 |
|
| 25.29 |
|
| 20.68 |
|
| 15.37 |
|
| 5.18 |
|
| 5.86 |
|
|
|
|
|
| 17.33 |
|
| 19.96 |
|
| 16.65 |
|
| 13.77 |
|
| 10.50 |
|
| 13.89 |
|
| 7/1/94 |
|
|
| 9.33 |
|
| 16.83 |
|
| 11.76 |
|
| 13.08 |
|
| 5.28 |
|
| 8.20 |
|
|
|
|
|
| 6.70 |
|
| 14.47 |
|
| 4.61 |
|
| 8.81 |
|
| — |
|
| 1.79 |
|
| 12/31/97 |
|
|
| 8.01 |
|
| 20.59 |
|
| 8.74 |
|
| 12.99 |
|
| — |
|
| 13.22 |
|
|
|
|
|
| 18.65 |
|
| 43.82 |
|
| 36.44 |
|
| 25.54 |
|
| 6.85 |
|
| 7.44 |
|
| 7/1/94 |
|
|
| 16.11 |
|
| 41.76 |
|
| 34.84 |
|
| 27.08 |
|
| 6.70 |
|
| 6.29 |
|
|
|
|
|
|
(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
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1997 |
| 1998 |
| 1999 |
| 2000 | ||||
| Balanced |
|
| 21.73 | % |
| 21.30 | % |
| 20.15 | % |
| -4.80 | % |
| S&P 500 Index |
|
| 33.36 |
|
| 28.58 |
|
| 21.04 |
|
| -9.11 |
|
| Lehman Aggregate Bond Index |
|
| 9.65 |
|
| 8.69 |
|
| -0.82 |
|
| 11.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend Growth Class I(1) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| S&P 500 Index |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend Growth Class S(1) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| S&P 500 Index |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap Growth(2) |
|
| 31.70 |
|
| 30.56 |
|
| 33.41 |
|
| -13.84 |
|
| Russell 1000® Growth Index |
|
| 30.48 |
|
| 38.72 |
|
| 33.16 |
|
| -22.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap Growth(3) |
|
| 17.70 |
|
| 6.84 |
|
| 70.65 |
|
| -4.35 |
|
| Russell Midcap® Growth Index |
|
| 22.54 |
|
| 17.87 |
|
| 51.29 |
|
| -11.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International Growth(4) |
|
| 4.81 |
|
| 18.95 |
|
| 50.77 |
|
| -26.66 |
|
| MSCI EAFE Growth Index |
|
| 2.11 |
|
| 22.21 |
|
| 29.46 |
|
| -24.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Cap Growth(3) |
|
| 7.63 |
|
| 1.97 |
|
| 108.63 |
|
| 6.25 |
|
| Russell 2000® Growth Index |
|
| 12.94 |
|
| 1.24 |
|
| 43.10 |
|
| -22.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Science & Technology Growth(5) |
|
| — |
|
| 38.40 |
|
| 85.98 |
|
| -6.55 |
|
| NYSE Arca Tech 100 Index |
|
| — |
|
| 54.60 |
|
| 116.40 |
|
| -16.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Developing Markets Growth(4) |
|
| -5.20 |
|
| -24.93 |
|
| 82.50 |
|
| -30.18 |
|
| MSCI Emerging Markets Index |
|
| -13.40 |
|
| -27.52 |
|
| 63.70 |
|
| -31.80 |
|
|
|
|
| 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 and Class S shares, which have been offered since 12/31/03 and 3/31/06, respectively. The annual returns shown for the Class I shares are substantially similar to the Class S because both classes of shares are invested in the same portfolio of securities. Annual returns 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
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2001 |
|
| 2002 |
|
| 2003 |
|
| 2004 |
|
| 2005 |
|
| 2006 |
|
| YTD 2007 |
|
Balanced |
|
| -12.99 | % |
| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| 7.88 | % |
| 6.15 | % |
S&P 500 Index |
|
| -11.88 |
|
| -22.10 |
|
| 28.68 |
|
| 10.88 |
|
| 4.91 |
|
| 15.80 |
|
| 6.96 |
|
Lehman Aggregate Bond Index |
|
| 8.44 |
|
| 10.25 |
|
| 4.10 |
|
| 4.34 |
|
| 2.43 |
|
| 4.33 |
|
| 0.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Growth Class I(1) |
|
| — |
|
| — |
|
| — |
|
| 10.91 |
|
| 9.41 |
|
| 18.29 |
|
| 9.29 |
|
S&P 500 Index |
|
| — |
|
| — |
|
| — |
|
| 10.88 |
|
| 4.91 |
|
| 15.80 |
|
| 6.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Growth Class S(1) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 11.25 |
|
| 9.07 |
|
S&P 500 Index |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 11.11 |
|
| 6.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Large Cap Growth(2) |
|
| -27.70 |
|
| -30.58 |
|
| 26.34 |
|
| 12.79 |
|
| 9.59 |
|
| 9.54 |
|
| 8.86 |
|
Russell 1000® Growth Index |
|
| -20.42 |
|
| -27.89 |
|
| 29.76 |
|
| 6.30 |
|
| 5.27 |
|
| 9.08 |
|
| 8.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid Cap Growth(3) |
|
| -33.39 |
|
| -34.64 |
|
| 38.51 |
|
| 17.02 |
|
| 15.27 |
|
| 9.56 |
|
| 12.37 |
|
Russell Midcap® Growth Index |
|
| -20.15 |
|
| -27.41 |
|
| 42.71 |
|
| 15.48 |
|
| 12.10 |
|
| 10.65 |
|
| 10.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Growth(4) |
|
| -33.26 |
|
| -29.84 |
|
| 28.70 |
|
| 12.97 |
|
| 14.67 |
|
| 18.19 |
|
| 10.85 |
|
MSCI EAFE Growth Index |
|
| -24.58 |
|
| -16.02 |
|
| 31.99 |
|
| 16.12 |
|
| 13.28 |
|
| 22.33 |
|
| 11.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Small Cap Growth(3) |
|
| -28.19 |
|
| -26.22 |
|
| 34.57 |
|
| 6.79 |
|
| 18.52 |
|
| 7.99 |
|
| 17.33 |
|
Russell 2000® Growth Index |
|
| -9.24 |
|
| -30.27 |
|
| 48.53 |
|
| 14.31 |
|
| 4.15 |
|
| 13.34 |
|
| 9.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Science & Technology Growth(5) |
|
| -47.78 |
|
| -44.45 |
|
| 40.09 |
|
| 7.39 |
|
| 3.83 |
|
| 1.80 |
|
| 6.70 |
|
NYSE Arca Tech 100 Index |
|
| -15.59 |
|
| -33.33 |
|
| 52.14 |
|
| 11.73 |
|
| 7.36 |
|
| 4.68 |
|
| 8.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Developing Markets Growth(4) |
|
| -12.01 |
|
| -18.37 |
|
| 45.96 |
|
| 16.54 |
|
| 33.77 |
|
| 31.59 |
|
| 18.65 |
|
MSCI Emerging Markets Index |
|
| -4.91 |
|
| -7.97 |
|
| 51.59 |
|
| 22.45 |
|
| 30.31 |
|
| 29.18 |
|
| 16.11 |
|
|
|
(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
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Average Annual Total Returns for Periods Ended December 31, 2006 |
|
|
|
|
|
|
|
|
|
|
| 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. |
|
|
|
|
|
|
|
|
|
| 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 | % |
|
|
|
|
|
|
|
|
|
| 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 | % |
|
|
|
|
|
|
|
|
|
| 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
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 | % |
|
|
|
|
|
|
|
|
|
| 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
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, and Bryce A. Doty |
|
|
|
|
|
|
|
|
Relatively stable interest rates and strong economic growth allowed both bonds and stocks to post solid returns over the past twelve months. Equities moved significantly higher, as corporate earnings generally surprised on the upside. We continue to believe stocks remain attractive, although we caution investors that the robust gains experienced over the past twelve months may not be repeated. Market volatility will likely pick up from the recent historically low levels, as concerns over rising inflation, stubbornly high oil prices and housing market weakness all have potential to whipsaw investor sentiment. Our investment strategy, however, remains largely unchanged. Our focus remains on high-quality growth stocks in a wide variety of sectors, as we believe investors will gravitate toward these types of securities in a somewhat more volatile, slower growth environment.
Fixed-income returns were positive over the past twelve months, although increases in interest rates in the most recent quarter negatively impacted returns. Investors, along with the Federal Reserve, continue to weigh the contrasting effects of ongoing housing market weakness with lingering concerns over inflation. It is our view, however, that the yield curve will steepen during the second half of 2007, as the market anticipates a greater possibility of a cut in the fed funds target rate in response to a cooling economy. In this environment, we are maintaining durations approximately at benchmark levels, with an emphasis on securities that will outperform in a steepening yield environment.
As we continue to believe there is stronger return potential for equities, we think an above average allocation to stocks remains appropriate. As of June 30th, the asset allocation of the Fund was 64% equities, 34% fixed-income and 2% cash.
Our research staff remains focused on high-quality securities in each asset class within the Fund, and we appreciate shareholders’ continued interest.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The Sit Balanced Fund’s dual objectives are to seek long-term growth of capital consistent with the preservation of principal and to provide regular income. It pursues its objectives by investing in a diversified portfolio of stocks and bonds. The Fund may emphasize either equity securities or fixed-income securities, or hold equal amounts of each, dependent upon the Adviser’s analysis of market, financial and economic conditions.
The Fund’s permissible investment allocation is: 35-65% in equity securities and 35-65% in fixed-income securities. At all times at least 25% of the fixed-income assets will be invested in fixed-income senior securities.
|
PORTFOLIO SUMMARY |
|
|
|
|
|
|
Net Asset Value 6/30/07: |
| $ | 16.93 Per Share |
|
|
6/30/06: |
| $ | 15.14 Per Share |
|
|
|
|
|
|
|
|
Total Net Assets: |
| $ | 12.5 Million |
|
|
|
PORTFOLIO STRUCTURE |
10
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
|
|
|
|
|
|
|
|
| ||
3 Month** |
| 4.65 | % |
| 6.28 | % |
| -0.52 | % | ||
6 Month** |
| 6.15 |
|
| 6.96 |
|
| 0.98 |
| ||
1 Year |
| 14.24 |
|
| 20.59 |
|
| 6.12 |
| ||
5 Year |
| 8.83 |
|
| 10.71 |
|
| 4.48 |
| ||
10 Year |
| 5.45 |
|
| 7.13 |
|
| 6.02 |
| ||
Inception |
| 7.85 |
|
| 11.04 |
|
| 6.03 |
| ||
| (12/31/93) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
|
|
|
|
|
|
|
|
| ||
1 Year |
| 14.24 | % |
| 20.59 | % |
| 6.12 | % | ||
5 Year |
| 52.69 |
|
| 66.30 |
|
| 24.52 |
| ||
10 Year |
| 70.06 |
|
| 99.07 |
|
| 79.37 |
| ||
Inception |
| 177.61 |
|
| 311.47 |
|
| 120.41 |
| ||
(12/31/93) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
*As of 6/30/07. |
|
|
|
|
| **Not annualized. |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance.
|
|
(1) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
(2) | An unmanaged index which measures the performance of approximately 6,000 publicly traded bonds with an approximate average maturity of 10 years. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/97 and held until 6/30/07 would have grown to $17,006 in the Fund, $19,907 in the S&P 500 Index or $17,937 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | 1. | Schlumberger Ltd. |
| 2. | General Electric Co. |
| 3. | Microsoft Corp. |
| 4. | Cisco Systems, Inc. |
| 5. | Comcast Corp. |
Bonds | 1. | U.S. Treasury Bond, 4.50%, 11/30/11 |
| 2. | American Strategic, Inc. Portfolio II |
| 3. | McDonald’s Corp., 7.31%, 9/15/27 |
| 4. | U.S. Treasury inflation-protected security, |
| 5. | Procter & Gamble, 9.36%, 1/1/21 |
Total Number of Holdings: 161 |
11
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (63.6%) (2) |
|
|
| ||
Commercial Services (0.3%) |
|
|
| ||
600 |
| The McGraw-Hill Companies, Inc. |
| 40,848 |
|
|
|
|
|
| |
Communications (2.3%) |
|
|
| ||
100 |
| AT&T, Inc. |
| 4,150 |
|
3,400 |
| Crown Castle Intl. Corp. (3) |
| 123,318 |
|
700 |
| NII Holdings, Inc. (3) |
| 56,518 |
|
3,000 |
| Vodafone Group, A.D.R. |
| 100,890 |
|
|
|
|
|
| |
|
|
|
| 284,876 |
|
|
|
|
|
| |
Consumer Non-Durables (3.0%) |
|
|
| ||
1,300 |
| Colgate-Palmolive Co. |
| 84,305 |
|
2,600 |
| PepsiCo, Inc. |
| 168,610 |
|
2,000 |
| The Procter & Gamble Co. |
| 122,380 |
|
|
|
|
|
| |
|
|
|
| 375,295 |
|
|
|
|
|
| |
Consumer Services (3.4%) |
|
|
| ||
6,600 |
| Comcast Corp. (3) |
| 185,592 |
|
1,000 |
| Harrah’s Entertainment, Inc. |
| 85,260 |
|
2,000 |
| Marriott International, Inc. |
| 86,480 |
|
3,000 |
| News Corp. |
| 63,630 |
|
|
|
|
|
| |
|
|
|
| 420,962 |
|
|
|
|
|
| |
Electronic Technology (7.4%) |
|
|
| ||
2,000 |
| Analog Devices, Inc. |
| 75,280 |
|
600 |
| Apple Computer, Inc. (3) |
| 73,224 |
|
7,400 |
| Cisco Systems, Inc. (3) |
| 206,090 |
|
5,500 |
| EMC Corp. (3) |
| 99,550 |
|
1,400 |
| Hewlett-Packard Co. |
| 62,468 |
|
3,800 |
| Intel Corp. |
| 90,288 |
|
5,100 |
| Nokia Corp., A.D.R. |
| 143,361 |
|
2,800 |
| Qualcomm, Inc. |
| 121,492 |
|
1,500 |
| Texas Instruments, Inc. |
| 56,445 |
|
|
|
|
|
| |
|
|
|
| 928,198 |
|
|
|
|
|
| |
Energy Minerals (5.8%) |
|
|
| ||
1,300 |
| Murphy Oil Corp. |
| 77,272 |
|
3,000 |
| Occidental Petroleum Corp. |
| 173,640 |
|
2,700 |
| Southwestern Energy Co. (3) |
| 120,150 |
|
800 |
| Suncor Energy, Inc. |
| 71,936 |
|
900 |
| Ultra Petroleum Corp. (3) |
| 49,716 |
|
1,200 |
| Valero Energy Corp. |
| 88,632 |
|
2,333 |
| XTO Energy, Inc. |
| 140,214 |
|
|
|
|
|
| |
|
|
|
| 721,560 |
|
|
|
|
|
| |
Finance (9.0%) |
|
|
| ||
1,500 |
| American Express Co. |
| 91,770 |
|
2,221 |
| American International Group, Inc. |
| 155,537 |
|
75 |
| Chicago Mercantile Exchange Holdings Inc. |
| 40,077 |
|
2,166 |
| Citigroup, Inc. |
| 111,094 |
|
1,400 |
| Franklin Resources, Inc. |
| 185,458 |
|
600 |
| Goldman Sachs Group, Inc. |
| 130,050 |
|
2,000 |
| JPMorgan Chase & Co. |
| 96,900 |
|
500 |
| Mellon Financial Corp. |
| 22,000 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
800 |
| Merrill Lynch & Co., Inc. |
| 66,864 |
1,000 |
| Prudential Financial, Inc. |
| 97,230 |
3,800 |
| Wells Fargo & Co. |
| 133,646 |
|
|
|
| |
|
|
|
| 1,130,626 |
|
|
|
| |
Health Services (1.7%) |
|
| ||
600 |
| Medco Health Solutions, Inc. (3) |
| 46,794 |
1,700 |
| UnitedHealth Group, Inc. |
| 86,938 |
1,000 |
| WellPoint, Inc. (3) |
| 79,830 |
|
|
|
| |
|
|
|
| 213,562 |
|
|
|
| |
Health Technology (6.7%) |
|
| ||
2,300 |
| Abbott Laboratories |
| 123,165 |
2,400 |
| Celgene Corp. (3) |
| 137,592 |
2,300 |
| Genentech, Inc. (3) |
| 174,018 |
1,000 |
| Genzyme Corp. (3) |
| 64,400 |
2,400 |
| Gilead Sciences, Inc. (3) |
| 93,048 |
1,000 |
| Johnson & Johnson |
| 61,620 |
2,155 |
| Pfizer, Inc. |
| 55,103 |
1,700 |
| Thermo Fisher Scientific, Inc. |
| 87,924 |
500 |
| Zimmer Holdings, Inc. (3) |
| 42,445 |
|
|
|
| |
|
|
|
| 839,315 |
|
|
|
| |
Industrial Services (3.4%) |
|
| ||
700 |
| McDermott International, Inc. |
| 58,184 |
1,100 |
| Noble Corp. |
| 107,272 |
3,000 |
| Schlumberger, Ltd. |
| 254,820 |
|
|
|
| |
|
|
|
| 420,276 |
|
|
|
| |
Non-Energy Minerals (0.5%) |
|
| ||
650 |
| Allegheny Technologies, Inc. |
| 68,172 |
|
|
|
| |
Process Industries (2.1%) |
|
| ||
1,150 |
| Air Products and Chemicals, Inc. |
| 92,425 |
2,500 |
| Monsanto Co. |
| 168,850 |
|
|
|
| |
|
|
|
| 261,275 |
|
|
|
| |
Producer Manufacturing (7.3%) |
|
| ||
2,900 |
| ABB, Ltd. |
| 65,540 |
700 |
| Caterpillar, Inc. |
| 54,810 |
700 |
| Deere & Co. |
| 84,518 |
1,800 |
| Emerson Electric Co. |
| 84,240 |
1,100 |
| General Dynamics Corp. |
| 86,042 |
6,200 |
| General Electric Co. |
| 237,336 |
1,100 |
| ITT Industries, Inc. |
| 75,108 |
1,200 |
| The Boeing Co. |
| 115,392 |
1,600 |
| United Technologies Corp. |
| 113,488 |
|
|
|
| |
|
|
|
| 916,474 |
|
|
|
| |
Retail Trade (3.4%) |
|
| ||
3,700 |
| CVS/Caremark Corp. |
| 134,865 |
1,200 |
| J.C. Penney Co., Inc. |
| 86,856 |
1,200 |
| Lowe’s Companies, Inc. |
| 36,828 |
2,700 |
| Target Corp. |
| 171,720 |
|
|
|
| |
|
|
|
| 430,269 |
|
|
|
| |
|
|
|
|
|
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Technology Services (5.1%) |
|
|
| ||
2,000 |
| Adobe Systems, Inc. (3) |
| 80,300 |
|
1,600 |
| Automatic Data Processing, Inc. |
| 77,552 |
|
300 |
| Google, Inc. (3) |
| 157,014 |
|
7,000 |
| Microsoft Corp. |
| 206,290 |
|
1,200 |
| Oracle Corporation |
| 23,652 |
|
900 |
| SAP AG |
| 45,963 |
|
2,500 |
| Western Union Co. |
| 52,075 |
|
|
|
|
|
| |
|
|
|
| 642,846 |
|
|
|
|
|
| |
Transportation (1.1%) |
|
|
| ||
1,200 |
| Burlington Northern Sante Fe Corp. |
| 102,168 |
|
1,300 |
| UTI Worldwide, Inc. |
| 34,827 |
|
|
|
|
|
| |
|
|
|
| 136,995 |
|
|
|
|
|
| |
Utilities (1.1%) |
|
|
| ||
2,700 |
| Equitable Resources, Inc. |
| 133,812 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 7,965,361 |
| ||
|
|
| |||
(cost: $5,748,705) |
|
|
| ||
|
|
|
|
|
|
Bonds (31.3%) (2) |
|
|
| ||
Asset-Backed Securities (4.5%) |
|
|
| ||
25,000 |
| Countrywide 2006-S6 A4, 5.80%, 3/25/34 |
| 24,502 |
|
|
| GMAC Mortgage Corporation Loan Trust: |
|
|
|
90,000 |
| 2007-HE2 A4, 6.42%, 12/25/37 |
| 89,997 |
|
75,000 |
| 2007-HE2 A5, 6.55%, 12/25/37 |
| 74,998 |
|
|
| Green Tree Financial Corp.: |
|
|
|
1,270 |
| 1995-5 A6, 7.25%, 9/15/26 |
| 1,275 |
|
33,762 |
| 1997-1 A6, 7.29%, 3/15/28 |
| 34,882 |
|
35,140 |
| 1997-6 A10, 6.87%, 1/15/29 |
| 35,844 |
|
39,254 |
| Indymac Mfg. Housing, |
|
|
|
|
| 1998-2 A2, 6.17%, 12/25/11 |
| 37,264 |
|
|
| Origen Mfg. Housing: |
|
|
|
41,220 |
| 2001-A A5, 7.08%, 3/15/32 |
| 42,123 |
|
23,903 |
| 2002-A A3, 6.17%, 5/15/32 |
| 23,689 |
|
|
| Residential Funding: |
|
|
|
40,000 |
| 2003-HI2 A6, 4.76%, 7/25/28 |
| 37,998 |
|
75,000 |
| 2006-HSA1 A4, 5.49%, 2/25/36 |
| 71,820 |
|
50,000 |
| 2007-HI1 A3, 5.72%, 3/25/37 |
| 49,471 |
|
50,000 |
| Structured Asset Securities Corp. |
|
|
|
|
| 2005-4XS, 5.25%, 3/25/35 |
| 46,657 |
|
|
|
|
|
| |
|
|
|
| 570,520 |
|
|
|
|
|
| |
Collateralized Mortgage Obligations (8.4%) |
|
|
| ||
|
| Bank of America Funding Corp: |
|
|
|
43,175 |
| 2005-5 A11, 5.50%, 9/25/35 |
| 41,252 |
|
50,000 |
| 2006-7 A12, 6.00%, 9/25/36 |
| 49,717 |
|
7,359 |
| Countrywide Alternative Loan Trust |
|
|
|
|
| 2005-53T2 2A1, 6.00%, 11/25/35 |
| 7,247 |
|
|
| Countrywide Home Loans: |
|
|
|
50,000 |
| 2004-21 A9, 6.00%, 11/25/34 |
| 49,879 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
50,000 |
| 2005-J3 1A2, 5.50%, 9/25/35 |
| 47,686 |
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 |
| 114,900 |
32,006 |
| FHLMC, 3.25%, 4/15/32 |
| 28,521 |
|
| Federal National Mtg. Association: |
|
|
69,956 |
| 6.50%, 10/25/17 |
| 71,181 |
23,978 |
| 5.50%, 5/25/25 |
| 23,275 |
50,000 |
| 5.00%, 12/25/31 |
| 46,319 |
38,568 |
| 4.00%, 5/25/33 |
| 35,556 |
100,000 |
| 5.50%, 4/25/35 |
| 96,885 |
35,032 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
| 6.00%, 5/25/35 |
| 34,573 |
25,000 |
| GMAC Loan Trust 2006-A4, 6.09%, 10/25/36 |
| 24,741 |
75,000 |
| JPALT 2006-S3, 6.12%, 8/25/36 |
| 74,613 |
50,319 |
| Master Asset Securitization Trust |
|
|
|
| 2003-4 CA1, 8.00%, 5/25/18 |
| 53,075 |
|
| Residential Funding Mtg. Securities: |
|
|
47,082 |
| 2005-S6 A2, 5.25%, 8/25/35 |
| 44,595 |
100,845 |
| 2006-S3 A8, 5.50%, 03/25/36 |
| 97,966 |
36,453 |
| Washington Mutual Mtg. Pass-Through |
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
| 35,405 |
75,000 |
| Wells Fargo Mortgage Backed Securities |
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
| 75,194 |
|
|
|
| |
|
|
|
| 1,052,580 |
|
|
|
| |
Corporate Bonds (8.1%) |
|
| ||
50,000 |
| AGL Capital Trust, 8.17%, 6/1/37 |
| 52,106 |
67,824 |
| America West Airlines, 7.93%, 1/2/19 |
| 73,043 |
50,000 |
| BAC Capital Trust, 6.63%, 5/23/36 |
| 50,983 |
50,000 |
| Bard (C.R.), Inc., 6.70%, 12/1/26 |
| 51,545 |
50,000 |
| Citigroup Capital III, 7.625%, 12/01/36 |
| 57,820 |
50,000 |
| Commonwealth Edison, 5.90%, 3/15/36 |
| 48,431 |
75,000 |
| Continental Airlines, Inc., 6.563%, 2/15/12 |
| 77,344 |
50,000 |
| CSX Corp., 9.75%, 6/15/20 |
| 63,894 |
25,000 |
| First Union Corp, 7.57%, 8/1/26 |
| 28,985 |
150,000 |
| McDonald’s Corp., 7.31%, 9/15/27 |
| 150,343 |
50,000 |
| Midamerican Energy Hldgs, 8.48%, 9/15/28 |
| 61,744 |
50,000 |
| Narragansett Electric, 7.39%, 10/1/27 |
| 51,276 |
96,849 |
| Procter & Gamble ESOP, 9.36%, 1/1/21 |
| 117,578 |
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 |
| 72,949 |
50,000 |
| Wal-Mart Stores, 8.80%, 12/30/14 |
| 58,004 |
|
|
|
| |
|
|
|
| 1,016,045 |
|
|
|
| |
Federal Home Loan Mortgage Corporation (0.8%) |
|
| ||
36,342 |
| 8.38%, 5/17/20 |
| 38,542 |
18,601 |
| 8.50%, 7/1/18 |
| 19,668 |
33,924 |
| 8.50%, 10/1/30 |
| 36,268 |
|
|
|
| |
|
|
|
| 94,478 |
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
13
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Federal National Mortgage Association (2.8%) |
|
|
| ||
63,011 |
| 7.00%, 10/1/33 |
| 64,699 |
|
81,980 |
| 7.15%, 10/1/30 |
| 85,124 |
|
19,375 |
| 7.50%, 6/1/32 |
| 20,320 |
|
19,651 |
| 8.00%, 12/1/27 |
| 20,695 |
|
57,718 |
| 8.00%, 2/1/31 |
| 60,803 |
|
38,490 |
| 8.46%, 4/15/26 |
| 41,610 |
|
19,749 |
| 9.50%, 5/1/27 |
| 21,711 |
|
9,721 |
| 9.75%, 1/15/13 |
| 10,459 |
|
9,322 |
| 10.25%, 6/15/13 |
| 10,064 |
|
15,413 |
| 11.00%, 12/1/12 |
| 16,425 |
|
|
|
|
|
| |
|
|
|
| 351,910 |
|
|
|
|
|
| |
Government National Mortgage Association (0.6%) |
|
|
| ||
53,242 |
| 7.00%, 12/15/24 |
| 55,832 |
|
3,474 |
| 9.00%, 6/15/11 |
| 3,703 |
|
2,313 |
| 9.00%, 6/15/09 |
| 2,386 |
|
7,004 |
| 9.00%, 11/15/16 |
| 7,496 |
|
1,041 |
| 9.50%, 5/20/16 |
| 1,121 |
|
1,529 |
| 9.50%, 9/20/18 |
| 1,655 |
|
987 |
| 11.25%, 10/15/11 |
| 1,080 |
|
|
|
|
|
| |
|
|
|
| 73,273 |
|
|
|
|
|
| |
|
|
|
|
|
|
Taxable Municipal Securities (0.8%) |
|
|
| ||
100,000 |
| Academica Charter School, 8.00%, 8/15/24 |
| 97,805 |
|
8,000 |
| Bernalillo Multifamily, Series 1998A, 7.50%, 9/20/20 |
| 8,425 |
|
|
|
|
|
| |
|
|
|
| 106,230 |
|
|
|
|
|
| |
|
|
|
|
|
|
U.S. Government Securities (5.3%) |
|
|
| ||
225,000 |
| U.S. Treasury Strips, Zero Coupon, 5.02% Effective Yield, 5/15/30 |
| 69,864 |
|
145,438 |
| U.S. Treasury inflation-protected security, 3.375%, 1/15/12 (*) |
| 150,119 |
|
200,000 |
| U.S. Treasury Bond, 4.50%, 11/30/11 |
| 196,594 |
|
|
| U.S. Treasury Notes: |
|
|
|
100,000 |
| 3.50%, 11/15/09 |
| 96,891 |
|
100,000 |
| 4.50%, 11/15/10 |
| 98,797 |
|
50,000 |
| 4.50%, 5/15/17 |
| 47,938 |
|
|
|
|
|
| |
|
|
|
| 660,203 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total bonds |
| 3,925,239 |
| ||
|
|
| |||
(cost: $3,984,662) |
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
Closed-End Mutual Funds (3.0%) (2) |
|
| ||
5,009 |
| American Select Portfolio |
| 62,512 |
5,503 |
| American Strategic, Inc. Portfolio |
| 63,450 |
13,470 |
| American Strategic, Inc. Portfolio II |
| 159,485 |
7,109 |
| American Strategic, Inc. |
| 84,313 |
|
|
|
| |
Total closed-end mutual funds |
| 369,760 | ||
|
| |||
(cost: $354,433) |
|
| ||
|
|
|
|
|
Short-Term Securities (2.2%) (2) |
|
| ||
277,000 |
| Sit Money Market Fund, 4.96% (4) |
| 277,000 |
|
|
|
| |
(cost: $277,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
| $12,537,360 | ||
|
| |||
(cost: $10,364,800) (5) |
|
|
|
|
|
| * | U.S. Treasury inflation-protected securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
See accompanying notes to portfolios of investments on page 44.
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
15
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Roger J. Sit, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Dividend Growth Fund Class I posted a +21.48% return over the last twelve months, compared to the +20.59% return for the S&P 500 Index.
|
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.
|
PORTFOLIO SUMMARY |
|
|
|
|
|
|
| Class I |
| Class S |
|
|
|
|
|
Net Asset Value |
|
|
|
|
|
|
|
|
|
6/30/07: |
| $14.42 Per Share |
| $14.39 Per Share |
|
|
|
|
|
6/30/06: |
| $12.26 Per Share |
| $12.26 Per Share |
|
|
|
|
|
Total Net Assets |
| $37.7 Million |
| $2.8 Million |
|
|
|
|
|
Weighted Average Market Cap: $81.5 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
| Class |
| S&P 500 | Class |
| S&P 500 |
| ||||||||
3 Month** |
|
| 6.40 | % |
|
| 6.28 | % |
| 6.27% |
| 6.28 | % | |||
6 Month** |
|
| 9.29 |
|
|
| 6.96 |
|
| 9.07 |
| 6.96 |
| |||
1 Year |
|
| 21.48 |
|
|
| 20.59 |
|
| 21.02 |
| 20.59 |
| |||
3 Year |
|
| 15.52 |
|
|
| 11.67 |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 13.74 |
|
|
| 11.00 |
|
| 16.75 |
| 14.82 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Class |
| S&P 500 | Class |
| S&P 500 | |||||||||
1 Year |
|
| 21.48 | % |
|
| 20.59 | % |
| 21.02% |
| 20.59 | % | |||
3 Year |
|
| 54.17 |
|
|
| 39.27 |
|
| n/a |
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
|
| n/a |
| n/a |
| |||
Inception*** |
|
| 56.88 |
|
|
| 44.07 |
|
| 21.35 |
| 18.85 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/07 |
| |||||||||||||||
|
| |||||||||||||||
**Not annualized. |
| |||||||||||||||
|
| |||||||||||||||
***Dividend Growth Fund Class I Inception was 12/31/03: Dividend Growth Fund Class S Inception was 3/31/06. | ||||||||||||||||
| ||||||||||||||||
|
|
|
|
|
|
(1) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/03) and held until 6/30/07 would have grown to $15,688 in the Fund or $14,407 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | General Electric Co. |
| 2. | Total S.A. |
| 3. | Citigroup, Inc. |
| 4. | Marathon Oil Corp. |
| 5. | Wells Fargo & Co. |
| 6. | United Technologies Corp. |
| 7. | AllianceBernstein Holdings |
| 8. | Proctor & Gamble Co. |
| 9. | Johnson & Johnson, Inc. |
| 10. | J.P. Morgan Chase & Co. |
|
| Total Number of Holdings: 85 |
17
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (96.1%) (2) |
|
|
| ||
|
|
|
|
|
|
Commercial Services (2.4%) |
|
|
| ||
8,400 |
| McGraw-Hill Companies, Inc. |
| 571,872 |
|
8,800 |
| Pitney Bowes, Inc. |
| 412,016 |
|
|
|
|
|
| |
|
|
|
| 983,888 |
|
|
|
|
|
| |
Communications (2.0%) |
|
|
| ||
18,900 |
| AT&T, Inc. |
| 784,350 |
|
|
|
|
|
| |
Consumer Non-Durables (9.1%) |
|
|
| ||
7,500 |
| Colgate-Palmolive Co. |
| 486,375 |
|
6,500 |
| Diageo p.l.c. |
| 541,515 |
|
7,100 |
| General Mills, Inc. |
| 414,782 |
|
5,900 |
| Kimberly-Clark Corp. |
| 394,651 |
|
11,300 |
| PepsiCo, Inc. |
| 732,805 |
|
13,600 |
| Procter & Gamble Co. |
| 832,184 |
|
2,900 |
| VF Corp. |
| 265,582 |
|
|
|
|
|
| |
|
|
|
| 3,667,894 |
|
|
|
|
|
| |
Electronic Technology (4.2%) |
|
|
| ||
8,400 |
| Analog Devices, Inc. |
| 316,176 |
|
9,100 |
| Hewlett-Packard Co. |
| 406,042 |
|
3,000 |
| International Business Machines Corp. |
| 315,750 |
|
11,000 |
| Nokia Corp., A.D.R. |
| 309,210 |
|
7,700 |
| Qualcomm, Inc. |
| 334,103 |
|
|
|
|
|
| |
|
|
|
| 1,681,281 |
|
|
|
|
|
| |
Energy Minerals (9.1%) |
|
|
| ||
7,600 |
| Chevron Corp. |
| 640,224 |
|
13,500 |
| Hugoton Royalty Trust |
| 340,605 |
|
15,900 |
| Marathon Oil Corp. |
| 953,364 |
|
12,600 |
| Occidental Petroleum Corp. |
| 729,288 |
|
12,400 |
| Total S.A. |
| 1,004,152 |
|
|
|
|
|
| |
|
|
|
| 3,667,633 |
|
|
|
|
|
| |
Finance (20.0%) |
|
|
| ||
10,000 |
| ACE, Ltd. |
| 625,200 |
|
9,600 |
| AllianceBernstein Holding, LP |
| 836,064 |
|
5,700 |
| AMB Property Corp. |
| 303,354 |
|
11,500 |
| Aspen Insurance Holdings, Ltd. |
| 322,805 |
|
18,900 |
| Citigroup, Inc. |
| 969,381 |
|
2,500 |
| Franklin Resources, Inc. |
| 331,175 |
|
7,400 |
| IPC Holdings, Ltd. |
| 238,946 |
|
16,250 |
| J.P. Morgan Chase & Co. |
| 787,312 |
|
8,800 |
| Lincoln National Corp. |
| 624,360 |
|
9,700 |
| Macquarie Infrastructure Co. Trust |
| 402,356 |
|
14,000 |
| Mellon Financial Corp. |
| 616,000 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
6,400 |
| Northern Trust Corp. |
| 411,136 |
|
8,600 |
| UBS AG |
| 516,086 |
|
8,100 |
| U.S. Bancorp |
| 266,895 |
|
24,500 |
| Wells Fargo & Co. |
| 861,665 |
|
|
|
|
|
| |
|
|
|
| 8,112,735 |
|
|
|
|
|
| |
Health Services (1.8%) |
|
|
| ||
7,200 |
| McKesson Corp. |
| 429,408 |
|
8,600 |
| Owens & Minor, Inc. |
| 300,484 |
|
|
|
|
|
| |
|
|
|
| 729,892 |
|
|
|
|
|
| |
Health Technology (11.7%) |
|
|
| ||
11,400 |
| Abbott Laboratories |
| 610,470 |
|
9,200 |
| Becton, Dickinson & Co. |
| 685,400 |
|
4,800 |
| C.R. Bard, Inc. |
| 396,624 |
|
6,950 |
| Eli Lilly and Co. |
| 388,366 |
|
6,300 |
| GlaxoSmithKline p.l.c. |
| 329,931 |
|
13,100 |
| Johnson & Johnson, Inc. |
| 807,222 |
|
10,200 |
| Novartis AG, A.D.R. |
| 571,914 |
|
12,800 |
| PerkinElmer, Inc. |
| 333,568 |
|
10,900 |
| Wyeth |
| 625,006 |
|
|
|
|
|
| |
|
|
|
| 4,748,501 |
|
|
|
|
|
| |
Industrial Services (3.1%) |
|
|
| ||
3,900 |
| Diamond Offshore Drilling, Inc. |
| 396,084 |
|
2,500 |
| Granite Construction, Inc. |
| 160,450 |
|
11,200 |
| Halliburton Co. |
| 386,400 |
|
5,000 |
| Lufkin Industries, Inc. |
| 322,750 |
|
|
|
|
|
| |
|
|
|
| 1,265,684 |
|
|
|
|
|
| |
Non-Energy Minerals (1.4%) |
|
|
| ||
2,300 |
| Carpenter Technology Corp. |
| 299,713 |
|
3,000 |
| Southern Peru Copper Corp. |
| 282,780 |
|
|
|
|
|
| |
|
|
|
| 582,493 |
|
|
|
|
|
| |
Process Industries (4.0%) |
|
|
| ||
4,600 |
| Air Products and Chemicals, Inc. |
| 369,702 |
|
8,300 |
| Compass Minerals International, Inc. |
| 287,678 |
|
8,100 |
| E.I. Du Pont de Nemours and Co. |
| 411,804 |
|
8,000 |
| RPM International, Inc. |
| 184,880 |
|
12,600 |
| UAP Holding Corp. |
| 379,764 |
|
|
|
|
|
| |
|
|
|
| 1,633,828 |
|
|
|
|
|
| |
Producer Manufacturing (13.2%) |
|
|
| ||
11,400 |
| ABB, Ltd., A.D.R. |
| 257,640 |
|
4,900 |
| Deere & Co. |
| 591,626 |
|
16,500 |
| Emerson Electric Co. |
| 772,200 |
|
9,200 |
| General Dynamics Corp. |
| 719,624 |
|
38,500 |
| General Electric Co. |
| 1,473,780 |
|
6,000 |
| Honeywell International Inc. |
| 337,680 |
|
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
4,800 |
| ITT Industries, Inc. |
| 327,744 |
|
12,100 |
| United Technologies Corp. |
| 858,253 |
|
|
|
|
|
| |
|
|
|
| 5,338,547 |
|
|
|
|
|
| |
Retail Trade (3.2%) |
|
|
| ||
4,600 |
| Best Buy Co., Inc. |
| 214,682 |
|
10,300 |
| Cato Corp. |
| 225,982 |
|
4,600 |
| Costco Wholesale Corp. |
| 269,192 |
|
5,900 |
| Nordstrom Inc. |
| 301,608 |
|
10,000 |
| TJX Co |
| 275,000 |
|
|
|
|
|
| |
|
|
|
| 1,286,464 |
|
|
|
|
|
| |
Technology Services (4.4%) |
|
|
| ||
10,300 |
| Accenture, Ltd. |
| 441,767 |
|
8,400 |
| Automatic Data Processing, Inc. |
| 407,148 |
|
23,700 |
| Microsoft Corp. |
| 698,439 |
|
7,222 |
| Syntel, Inc. |
| 219,477 |
|
|
|
|
|
| |
|
|
|
| 1,766,831 |
|
|
|
|
|
| |
Transportation (2.8%) |
|
|
| ||
3,100 |
| Burlington Northern Santa Fe Corp. |
| 263,934 |
|
3,500 |
| C.H. Robinson Worldwide |
| 183,820 |
|
6,600 |
| Ship Finance International, Ltd. |
| 195,888 |
|
3,300 |
| Tsakos Energy Navigation, Ltd. |
| 230,703 |
|
3,650 |
| United Parcel Service, Inc. |
| 266,450 |
|
|
|
|
|
| |
|
|
|
| 1,140,795 |
|
|
|
|
|
| |
Utilities (3.7%) |
|
|
| ||
5,400 |
| Enel S.p.A. |
| 289,980 |
|
9,300 |
| Equitable Resources, Inc. |
| 460,908 |
|
6,600 |
| Exelon Corp. |
| 479,160 |
|
8,400 |
| Southern Co. |
| 288,036 |
|
|
|
|
|
| |
|
|
|
| 1,518,084 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 38,908,900 |
| ||
|
|
|
|
| |
(cost: $32,687,734) |
|
|
| ||
|
|
|
|
|
|
Closed-End Mutual Funds (1.9%) (2) |
|
|
| ||
23,050 |
| Kayne Anderson MLP Invest. Co. |
| 765,491 |
|
|
|
|
|
| |
(cost: $651,039) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (1.9%) (2) |
|
|
| ||
763,000 |
| Sit Money Market Fund, 4.96% (4) |
| 763,000 |
|
|
|
|
|
| |
(cost: $763,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $34,101,773) (5) |
| $ 40,437,391 |
| ||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
19
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Peter L. Mitchelson, Roger J. Sit, Ronald D. Sit |
|
|
|
|
|
|
|
|
The Sit Large Cap Growth Fund’s one-year return was +17.79%, compared to the +19.04% return for the Russell 1000® Growth Index. The S&P 500 Index posted a +20.59% return for the period.
Despite periodic setbacks, U.S. stocks posted above average returns over the past twelve months, as strength in the global economy resulted in surprisingly strong earnings gains for U.S. corporations. While housing market weakness and higher oil prices had a dampening effect on economic growth early in 2007, recent data has pointed to an acceleration in economic activity in the second quarter. Despite the recent pick up in economic activity, however, corporate earnings growth has clearly decelerated from the unsustainable pace of growth in recent years. We believe this is a key reason that growth stocks have turned in strong absolute and relative to performance thus far in 2007. For example, the Russell 1000® Growth Index has outperformed the Russell 1000® Value Index by almost two full percentage points year-to-date.
Relative to the S&P 500 Index, performance over the past year was aided by strong stock selection and an under weighted position in the finance sector, along with good stock selection in the process industries, electronic technology and industrial services sectors. In terms of individual stocks, Franklin Resources (+53% total return over the past twelve months), Monsanto (+62%), Equitable Resources (+51%), Vodafone PLC (+66%) and EMC (+65%) were among the key winners during the period. The lagging groups within the Fund over the period were consumer non-durables, health technology and energy minerals, as the absence (within the Fund) of strongly performing Exxon Mobil detracted from relative returns over the past year.
We believe that an improving backdrop for growth investing will favor current over-weighted sectors (relative to the S&P 500 Index) within the Fund, including health technology, electronic technology and technology services. We also favor companies benefiting from global growth and industrial capital spending; therefore, the Fund is overweighted in both the industrial services and producer manufacturing sectors. Slower growth groups, including utilities, finance and consumer non-durables, remain underweighted.
We remain enthusiastic about the Fund’s prospects in the year ahead and appreciate continued shareholder interest.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $43.99 Per Share |
6/30/06: |
| $37.60 Per Share |
| ||
Total Net Assets: |
| $125.7 Million |
| ||
Weighted Average Market Cap: |
| $81.0 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| 7.27 | % |
| 6.86 | % |
| 5.89 | % |
| |
6 Month** |
| 8.86 |
|
| 8.12 |
|
| 7.18 |
|
| |
1 Year |
| 17.79 |
|
| 19.04 |
|
| 20.43 |
|
| |
5 Year |
| 11.04 |
|
| 9.28 |
|
| 11.33 |
|
| |
10 Year |
| 4.42 |
|
| 4.39 |
|
| 7.55 |
|
| |
Inception*** |
| 11.20 |
|
| 12.04 |
|
| 13.62 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| 17.79 | % |
| 19.04 | % |
| 20.43 | % |
| |
5 Year |
| 68.79 |
|
| 55.86 |
|
| 71.01 |
|
| |
10 Year |
| 54.04 |
|
| 53.67 |
|
| 107.04 |
|
| |
Inception*** |
| 1298.47 |
|
| 1584.46 |
|
| 2287.89 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/07 | **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 6/30/97 and held until 6/30/07 would have grown to $15,404 in the Fund or $15,367 in the Russell 1000® Growth Index.
|
TOP 10 HOLDINGS |
|
|
1. | General Electric Co. |
2. | Cisco Systems, Inc. |
3. | Schlumberger, Ltd. |
4. | Monsato Co. |
5. | Franklin Resources, Inc. |
6. | Comcast Corp |
7. | Target Corp. |
8. | Genentech, Inc. |
9. | American International Group, Inc. |
10. | Microsoft Corp. |
| Total Number of Holdings: 84 |
21
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (95.7%) (2) |
|
|
| ||
Commercial Services (0.8%) |
|
|
| ||
|
|
|
| ||
14,300 |
| The McGraw-Hill Companies, Inc. |
| 973,544 |
|
|
|
|
|
| |
Communications (4.8%) |
|
|
| ||
32,000 |
| AT&T, Inc. |
| 1,328,000 |
|
62,200 |
| Crown Castle Intl. Corp. (3) |
| 2,255,994 |
|
13,800 |
| NII Holdings, Inc. (3) |
| 1,114,212 |
|
41,625 |
| Vodafone Group, A.D.R. |
| 1,399,848 |
|
|
|
|
|
| |
|
|
|
| 6,098,054 |
|
|
|
|
|
| |
Consumer Non-Durables (3.8%) |
|
|
| ||
16,850 |
| Colgate-Palmolive Co. |
| 1,092,722 |
|
33,300 |
| PepsiCo, Inc. |
| 2,159,505 |
|
25,400 |
| Procter & Gamble Co. |
| 1,554,226 |
|
|
|
|
|
| |
|
|
|
| 4,806,453 |
|
|
|
|
|
| |
Consumer Services (5.2%) |
|
|
| ||
91,350 |
| Comcast Corp. (3) |
| 2,568,761 |
|
14,500 |
| Harrah’s Entertainment, Inc. |
| 1,236,270 |
|
9,000 |
| International Game Technology |
| 357,300 |
|
29,200 |
| Marriott International, Inc. |
| 1,262,608 |
|
53,600 |
| News Corp. |
| 1,136,856 |
|
|
|
|
|
| |
|
|
|
| 6,561,795 |
|
|
|
|
|
| |
Electronic Technology (11.5%) |
|
|
| ||
49,500 |
| Analog Devices, Inc. |
| 1,863,180 |
|
9,200 |
| Apple Computer, Inc. (3) |
| 1,122,768 |
|
104,400 |
| Cisco Systems, Inc. (3) |
| 2,907,540 |
|
76,500 |
| EMC Corp. (3) |
| 1,384,650 |
|
35,800 |
| Hewlett-Packard Co. |
| 1,597,396 |
|
49,700 |
| Intel Corp. |
| 1,180,872 |
|
58,400 |
| Nokia Corp., A.D.R. |
| 1,641,624 |
|
40,800 |
| Qualcomm, Inc. |
| 1,770,312 |
|
27,000 |
| Texas Instruments, Inc. |
| 1,016,010 |
|
|
|
|
|
| |
|
|
|
| 14,484,352 |
|
|
|
|
|
| |
Energy Minerals (8.1%) |
|
|
| ||
21,100 |
| Murphy Oil Corp. |
| 1,254,184 |
|
32,000 |
| Occidental Petroleum Corp. |
| 1,852,160 |
|
40,400 |
| Southwestern Energy Co. (3) |
| 1,797,800 |
|
11,700 |
| Suncor Energy, Inc. |
| 1,052,064 |
|
11,600 |
| Ultra Petroleum Corp. (3) |
| 640,784 |
|
19,900 |
| Valero Energy Corp. |
| 1,469,814 |
|
34,366 |
| XTO Energy, Inc. |
| 2,065,397 |
|
|
|
|
|
| |
|
|
|
| 10,132,203 |
|
|
|
| |||
Finance (13.9%) |
|
|
| ||
19,800 |
| American Express Co. |
| 1,211,364 |
|
32,862 |
| American International Group, Inc. |
| 2,301,326 |
|
|
|
|
|
| |
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
| |||
2,300 |
| Chicago Merc. Exchange Holdings, Inc. |
| 1,229,028 | |
33,100 |
| Citigroup, Inc. |
| 1,697,699 | |
19,400 |
| Franklin Resources, Inc. |
| 2,569,918 | |
26,400 |
| J.P. Morgan Chase & Co. |
| 1,279,080 | |
37,300 |
| Mellon Financial Corp. |
| 1,641,200 | |
11,600 |
| Merrill Lynch & Co., Inc. |
| 969,528 | |
12,900 |
| Prudential Financial, Inc. |
| 1,254,267 | |
8,100 |
| The Goldman Sachs Group, Inc. |
| 1,755,675 | |
44,200 |
| Wells Fargo & Co. |
| 1,554,514 | |
|
|
|
| ||
|
|
|
| 17,463,599 | |
|
|
|
| ||
Health Services (2.3%) |
|
| |||
8,100 |
| Medco Health Solutions, Inc. (3) |
| 631,719 | |
22,700 |
| UnitedHealth Group, Inc. |
| 1,160,878 | |
13,000 |
| WellPoint, Inc. (3) |
| 1,037,790 | |
|
|
|
| ||
|
|
|
| 2,830,387 | |
|
| ||||
Health Technology (10.4%) |
|
| |||
38,500 |
| Abbott Laboratories |
| 2,061,675 | |
36,000 |
| Celgene Corp. (3) |
| 2,063,880 | |
32,500 |
| Genentech, Inc. (3) |
| 2,458,950 | |
14,500 |
| Genzyme Corp. (3) |
| 933,800 | |
40,800 |
| Gilead Sciences, Inc. (3) |
| 1,581,816 | |
21,750 |
| Johnson & Johnson |
| 1,340,235 | |
32,225 |
| Pfizer, Inc. |
| 823,994 | |
23,900 |
| Thermo Fisher Scientific, Inc. (3) |
| 1,236,108 | |
6,500 |
| Zimmer Holdings, Inc. (3) |
| 551,785 | |
|
|
|
| ||
|
|
|
| 13,052,243 | |
|
|
|
| ||
Industrial Services (4.1%) |
|
| |||
11,400 |
| McDermott International, Inc. (3) |
| 947,568 | |
15,300 |
| Noble Corp. |
| 1,492,056 | |
32,400 |
| Schlumberger, Ltd. |
| 2,752,056 | |
|
|
|
| ||
|
|
|
| 5,191,680 | |
|
|
|
| ||
Non-Energy Minerals (0.9%) |
|
| |||
10,650 |
| Allegheny Technologies, Inc. |
| 1,116,972 | |
|
|
|
| ||
Process Industries (3.1%) |
|
| |||
15,100 |
| Air Products and Chemicals, Inc. |
| 1,213,587 | |
39,600 |
| Monsanto Co. |
| 2,674,584 | |
|
|
|
| ||
|
|
|
| 3,888,171 | |
|
|
|
| ||
Producer Manufacturing (10.8%) |
|
| |||
42,900 |
| ABB, Ltd., A.D.R. |
| 969,540 | |
8,700 |
| Caterpillar, Inc. |
| 681,210 | |
10,600 |
| Deere & Co. |
| 1,279,844 | |
26,200 |
| Emerson Electronic Co. |
| 1,226,160 | |
16,600 |
| General Dynamics Corp. |
| 1,298,452 |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
| ||
97,800 |
| General Electric Co. |
| 3,743,784 |
|
18,100 |
| ITT Corp. |
| 1,235,868 |
|
19,000 |
| The Boeing Co. |
| 1,827,040 |
|
18,300 |
| United Technologies Corp. |
| 1,298,019 |
|
|
|
|
|
| |
|
|
|
| 13,559,917 |
|
|
|
|
|
| |
Retail Trade (4.8%) |
|
|
| ||
53,700 |
| CVS Corp. |
| 1,957,365 |
|
14,500 |
| J.C. Penney Co., Inc. |
| 1,049,510 |
|
17,800 |
| Lowe’s Companies, Inc. |
| 546,282 |
|
39,800 |
| Target Corp. |
| 2,531,280 |
|
|
|
|
|
| |
|
|
|
| 6,084,437 |
|
|
|
|
|
| |
Technology Services (8.3%) |
|
|
| ||
29,000 |
| Accenture, Ltd. |
| 1,243,810 |
|
29,000 |
| Adobe Systems, Inc. (3) |
| 1,164,350 |
|
22,200 |
| Automatic Data Processing, Inc. |
| 1,076,034 |
|
21,800 |
| First Data Corp. |
| 712,206 |
|
3,900 |
| Google, Inc. (3) |
| 2,041,182 |
|
76,900 |
| Microsoft Corp. |
| 2,266,244 |
|
31,500 |
| Oracle Corp. (3) |
| 620,865 |
|
13,000 |
| SAP AG |
| 663,910 |
|
33,700 |
| Western Union Co. |
| 701,971 |
|
|
|
|
|
| |
|
|
|
| 10,490,572 |
|
|
|
|
|
| |
Transportation (1.4%) |
|
|
| ||
14,800 |
| Burlington Northern Sante Fe Corp. |
| 1,260,072 |
|
18,800 |
| UTI Worldwide, Inc. |
| 503,652 |
|
|
|
|
|
| |
|
|
|
| 1,763,724 |
|
|
|
|
|
| |
Utilities (1.5%) |
|
|
| ||
38,000 |
| Equitable Research, Inc. |
| 1,883,280 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 120,381,383 |
| ||
|
|
|
|
| |
(cost: $93,228,080) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (4.2%) (2) |
|
|
| ||
5,224,000 |
| Sit Money Market Fund, 4.96% (4) |
| 5,224,000 |
|
|
|
|
|
| |
(cost: $5,224,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $98,452,080) (5) |
| $125,605,383 |
| ||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 44.
23
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Matt T. Loucks, Robert W. Sit |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of growth companies with capitalizations of $2 billion to $15 billion at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $15.71 Per Share |
6/30/06: |
| $13.01 Per Share |
|
|
|
Total Net Assets: |
| $205.3 Million |
| ||
Weighted Average Market Cap: |
| $12.8 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| 7.82 | % |
|
| 6.75 | % |
|
| 5.30 | % | ||
6 Month** |
|
| 12.37 |
|
|
| 10.98 |
|
|
| 9.90 |
| ||
1 Year |
|
| 20.75 |
|
|
| 19.73 |
|
|
| 20.83 |
| ||
5 Year |
|
| 14.71 |
|
|
| 15.45 |
|
|
| 16.39 |
| ||
10 Year |
|
| 6.63 |
|
|
| 8.66 |
|
|
| 11.86 |
| ||
Inception |
|
| 13.89 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| 20.75 | % |
|
| 19.73 | % |
|
| 20.83 | % | ||
5 Year |
|
| 98.61 |
|
|
| 105.09 |
|
|
| 113.58 |
| ||
10 Year |
|
| 90.09 |
|
|
| 129.41 |
|
|
| 206.74 |
| ||
Inception |
|
| 2430.80 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 6/30/07 | **Not annualized. | |||||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. |
(2) | An unmanaged index that measures the performance of the 800 smallest companies in The Russell 1000® Index. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/97 and held until 6/30/07 would have grown to $19,009 in the Fund or $22,941 in the Russell Midcap® Growth Index.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Coach, Inc. |
| 2. | Celgene Corp. |
| 3. | Affiliated Managers Group, Inc. |
| 4. | Smith International, Inc. |
| 5. | McDermott International, Inc. |
| 6. | Precision Castparts Corp. |
| 7. | XTO Energy, Inc. |
| 8. | NII Holdings, Inc. |
| 9. | Cognizant Tech. Solutions Corp. |
| 10. | Analog Devices, Inc. |
|
| Total Number of Holdings: 87 |
25
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (98.1%) (2) |
|
|
| ||
Commercial Services (1.1%) |
|
|
| ||
43,400 |
| Aecom Technology Corp. (3) |
| 1,076,754 |
|
16,300 |
| McGraw-Hill Companies, Inc. |
| 1,109,704 |
|
|
|
|
|
| |
|
|
|
| 2,186,458 |
|
|
|
|
|
| |
Communications (4.2%) |
|
|
| ||
74,600 |
| American Tower Corp. (3) |
| 3,133,200 |
|
313,000 |
| Level 3 Communications, Inc. (3) |
| 1,831,050 |
|
46,400 |
| NII Holdings, Inc. (3) |
| 3,746,336 |
|
|
|
|
|
| |
|
|
|
| 8,710,586 |
|
|
|
|
|
| |
Consumer Durables (1.7%) |
|
|
| ||
28,800 |
| Electronic Arts Inc. (3) |
| 1,362,816 |
|
61,700 |
| Scientific Games Corp. (3) |
| 2,156,415 |
|
|
|
|
|
| |
|
|
|
| 3,519,231 |
|
|
|
|
|
| |
Consumer Non-Durables (5.2%) |
|
|
| ||
28,600 |
| Bare Escentuals, Inc. (3) |
| 976,690 |
|
137,700 |
| Coach, Inc. (3) |
| 6,525,603 |
|
23,500 |
| Hansen Natural Corp. (3) |
| 1,010,030 |
|
21,400 |
| Polo Ralph Lauren Corp. |
| 2,099,554 |
|
|
|
|
|
| |
|
|
|
| 10,611,877 |
|
|
|
|
|
| |
Consumer Services (3.2%) |
|
|
| ||
21,900 |
| Harrah’s Entertainment, Inc. |
| 1,867,194 |
|
61,700 |
| International Game Technology |
| 2,449,490 |
|
52,400 |
| Marriott International, Inc. |
| 2,265,776 |
|
|
|
|
|
| |
|
|
|
| 6,582,460 |
|
|
|
|
|
| |
Electronic Technology (10.7%) |
|
|
| ||
91,150 |
| Analog Devices, Inc. |
| 3,430,886 |
|
17,900 |
| Apple Computer, Inc. (3) |
| 2,184,516 |
|
86,775 |
| Broadcom Corp. (3) |
| 2,538,169 |
|
27,000 |
| F5 Networks, Inc. (3) |
| 2,176,200 |
|
62,950 |
| Juniper Networks, Inc. (3) |
| 1,584,452 |
|
18,900 |
| KLA-Tencor Corp. |
| 1,038,555 |
|
35,500 |
| Lam Research Corp. (3) |
| 1,824,700 |
|
58,200 |
| Network Appliance, Inc. (3) |
| 1,699,440 |
|
52,900 |
| Trimble Navigation, Ltd. (3) |
| 1,703,380 |
|
29,100 |
| VeriFone Holdings, Inc. (3) |
| 1,025,775 |
|
101,683 |
| Xilinx, Inc. |
| 2,722,054 |
|
|
|
|
|
| |
|
|
|
| 21,928,127 |
|
|
|
|
|
| |
Energy Minerals (7.2%) |
|
|
| ||
29,000 |
| Apache Corp. |
| 2,366,110 |
|
31,900 |
| Frontier Oil Corp. |
| 1,396,263 |
|
47,900 |
| Geokinetics, Inc. (3) |
| 1,486,337 |
|
32,600 |
| Murphy Oil Corp. |
| 1,937,744 |
|
76,400 |
| Southwestern Energy Corp. (3) |
| 3,399,800 |
|
69,916 |
| XTO Energy, Inc. |
| 4,201,952 |
|
|
|
|
|
| |
|
|
|
| 14,788,206 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Finance (9.6%) |
|
|
| ||
51,050 |
| Ace, Ltd. |
| 3,191,646 |
|
37,400 |
| Affiliated Managers Group, Inc. (3) |
| 4,815,624 |
|
15,600 |
| IntercontinentalExchange, |
| 2,306,460 |
|
26,600 |
| Lehman Brothers Holdings, Inc. |
| 2,016,280 |
|
32,000 |
| Northern Trust Corp. |
| 2,055,680 |
|
54,500 |
| T. Rowe Price Group Inc. |
| 2,828,005 |
|
89,600 |
| TCF Financial Corp. |
| 2,490,880 |
|
|
|
|
|
| |
|
|
|
| 19,704,575 |
|
|
|
|
|
| |
Health Services (3.8%) |
|
|
| ||
31,100 |
| Coventry Health Care, Inc. (3) |
| 1,792,915 |
|
22,800 |
| Express Scripts, Inc. (3) |
| 1,140,228 |
|
30,200 |
| Laboratory Corp. (3) |
| 2,363,452 |
|
56,000 |
| Stericycle, Inc. (3) |
| 2,489,760 |
|
|
|
|
|
| |
|
|
|
| 7,786,355 |
|
|
|
|
|
| |
Health Technology (14.5%) |
|
|
| ||
15,000 |
| Alcon, Inc. |
| 2,023,650 |
|
34,600 |
| Allergan, Inc. |
| 1,994,344 |
|
35,600 |
| Amylin Pharmaceuticals, |
| 1,465,296 |
|
107,100 |
| Celgene Corp. (3) |
| 6,140,043 |
|
85,800 |
| Gilead Sciences, Inc. (3) |
| 3,326,466 |
|
23,400 |
| Idexx Laboratories, Inc. (3) |
| 2,214,342 |
|
22,150 |
| Intuitive Surgical, Inc. (3) |
| 3,073,755 |
|
54,000 |
| Kyphon, Inc. (3) |
| 2,600,100 |
|
51,800 |
| SurModics, Inc. (3) |
| 2,590,000 |
|
66,050 |
| Thermo Fisher Scientific |
| 3,416,106 |
|
29,000 |
| Vertex Pharmaceuticals, |
| 828,240 |
|
|
|
|
|
| |
|
|
|
| 29,672,342 |
|
|
|
|
|
| |
Industrial Services (6.2%) |
|
|
| ||
52,300 |
| McDermott International, |
| 4,347,176 |
|
27,400 |
| Noble Corp. |
| 2,672,048 |
|
78,500 |
| Smith International, Inc. |
| 4,603,240 |
|
23,200 |
| URS Corp. (3) |
| 1,126,360 |
|
|
|
|
|
| |
|
|
|
| 12,748,824 |
|
|
|
|
|
| |
Non-Energy Minerals (2.7%) |
|
|
| ||
26,750 |
| Allegheny Technologies, Inc. |
| 2,805,540 |
|
36,700 |
| RTI International Metals, |
| 2,766,079 |
|
|
|
|
|
| |
|
|
|
| 5,571,619 |
|
|
|
|
|
| |
Process Industries (2.8%) |
|
|
| ||
68,900 |
| Airgas, Inc. |
| 3,300,310 |
|
45,600 |
| Albemarle Corp. |
| 1,756,968 |
|
6,700 |
| National-Oilwell Varco, |
| 698,408 |
|
|
|
|
|
| |
|
|
|
| 5,755,686 |
|
|
|
|
|
|
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
| |
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
| |
Producer Manufacturing (8.3%) |
|
|
| ||
59,950 |
| AMETEK, Inc. |
| 2,378,816 |
|
63,000 |
| IDEX Corp. |
| 2,428,020 |
|
42,000 |
| ITT Industries, Inc. |
| 2,867,760 |
|
33,200 |
| Jacobs Engineering Group, Inc. (3) |
| 1,909,332 |
|
34,900 |
| Precision Castparts Corp. |
| 4,235,464 |
|
16,200 |
| Rockwell Collins, Inc. |
| 1,144,368 |
|
19,200 |
| Textron, Inc. |
| 2,114,112 |
|
|
|
|
|
| |
|
|
|
| 17,077,872 |
|
|
|
|
|
| |
Retail Trade (3.6%) |
|
|
| ||
28,200 |
| Dick’s Sporting Goods, |
| 1,640,394 |
|
55,000 |
| GameStop Corp. (3) |
| 2,150,500 |
|
23,600 |
| J.C. Penney Company, Inc. |
| 1,708,168 |
|
38,700 |
| Nordstrom, Inc. |
| 1,978,344 |
|
|
|
|
|
| |
|
|
|
| 7,477,406 |
|
|
|
|
|
| |
Technology Services (10.8%) |
|
|
| ||
80,590 |
| Adobe Systems, Inc. (3) |
| 3,235,688 |
|
27,850 |
| Akamai Technologies, Inc. (3) |
| 1,354,624 |
|
52,300 |
| Amdocs, Ltd. (3) |
| 2,082,586 |
|
47,100 |
| Autodesk, Inc. (3) |
| 2,217,468 |
|
69,300 |
| Ceridian Corp. (3) |
| 2,425,500 |
|
63,600 |
| Citrix Systems, Inc. (3) |
| 2,141,412 |
|
49,500 |
| Cognizant Tech. Solutions Corp. (3) |
| 3,716,955 |
|
50,600 |
| Global Payments Inc. |
| 2,006,290 |
|
29,100 |
| Intuit, Inc. (3) |
| 875,328 |
|
53,300 |
| Paychex, Inc. |
| 2,085,096 |
|
|
|
|
|
| |
|
|
|
| 22,140,947 |
|
|
|
|
|
| |
Transportation (2.5%) |
|
|
| ||
43,900 |
| C.H. Robinson Worldwide, Inc. |
| 2,305,628 |
|
46,700 |
| Expeditors Intl. of Washington, Inc. |
| 1,928,710 |
|
35,800 |
| UTI Worldwide, Inc. |
| 959,082 |
|
|
|
|
|
| |
|
|
|
| 5,193,420 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 201,455,991 |
| ||
|
|
| |||
(cost: $136,048,273) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (1.8%) (2) |
|
|
| ||
3,614,000 |
| Sit Money Market Fund, 4.96% (4) |
| 3,614,000 |
|
|
|
|
|
| |
(cost: $3,614,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $139,662,273) (5) | $ 205,069,991 |
| |||
|
|
See accompanying notes to portfolios of investments on page 44.
27
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Janet K. Kinzler, Tasha M. Murdoff |
|
|
|
|
|
|
|
|
The Sit International Growth Fund appreciated +21.87% for the last fiscal year while the MSCI EAFE Growth Index returned +25.29%. The appreciation was driven by positive stock selection on both a regional and sector basis. However, the underperformance was primarily a result of our currency exposure, (e.g. underweighting European currencies, and overweighting the yen and dollar-pegged investments). In particular, Latin American telecom, Japanese industrial, and European health care and financial holdings positively contributed to the portfolio while consumer staple and Canadian energy investments detracted.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $18.70 Per Share |
6/30/06: |
| $15.48 Per Share |
|
|
|
Total Net Assets: |
| $39.5 Million |
|
|
|
Weighted Average Market Cap: |
| $58.2 Billion |
|
|
|
|
PORTFOLIO STRUCTURE - BY REGION |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| 8.59 | % |
|
| 6.66 | % |
|
| 6.40 | % |
| ||
6 Month** |
|
| 10.85 |
|
|
| 11.94 |
|
|
| 10.74 |
|
| ||
1 Year |
|
| 21.87 |
|
|
| 25.29 |
|
|
| 27.00 |
|
| ||
5 Year |
|
| 12.16 |
|
|
| 15.37 |
|
|
| 17.73 |
|
| ||
10 Year |
|
| 2.25 |
|
|
| 5.18 |
|
|
| 7.66 |
|
| ||
Inception |
|
| 6.33 |
|
|
| 5.86 |
|
|
| 8.22 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| 21.87 | % |
|
| 25.29 | % |
|
| 27.00 | % |
| ||
5 Year |
|
| 77.52 |
|
|
| 104.41 |
|
|
| 126.19 |
|
| ||
10 Year |
|
| 24.89 |
|
|
| 65.76 |
|
|
| 109.20 |
|
| ||
Inception |
|
| 161.70 |
|
|
| 144.12 |
|
|
| 245.16 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 6/30/07. | **Not annualized. |
| |||||||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. |
|
|
(1) | An unmanaged index that measures the performance of over 1,100 international companies within the stock markets of Europe, Australasian and Far East. |
(2) | An unmanaged index which measures the performance of international companies screened for liquidity, cross ownership, and industry representation within the stock markets of Europe, Australia, New Zealand and the Far East. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/97 and held until 6/30/07 would have grown to $12,489 in the Fund or $16,576 in the MSCI EAFE Growth Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
29
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
|
1. |
| BHP Billiton, Ltd. |
2. |
| Rio Tinto, A.D.R. |
3. |
| Veolia Environment |
4. |
| Schlumberger, Ltd. |
5. |
| Vestas Wind Systems, Inc. |
6. |
| NII Holdings, Inc. |
7. |
| Novartis, A.G. |
8. |
| Roche Holdings, A.G. |
9. |
| Puma AG |
10. |
| Central Euro Media |
|
| Total Number of Holdings: 90 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
| |||
Africa/ Middle East (0.8%) |
|
| |||
Israel (0.8%) |
|
| |||
7,600 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 302,632 |
|
|
|
|
|
| |
Asia (34.4%) |
|
|
| ||
Australia (8.0%) |
|
|
| ||
17,444 |
| Australia and New Zealand |
|
|
|
|
| Banking Group (Finance) |
| 429,037 |
|
47,051 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 1,398,328 |
|
4,400 |
| Rio Tinto, p.l.c., A.D.R. (Non-Energy Minerals) |
| 1,346,928 |
|
|
|
|
|
| |
|
|
|
| 3,174,293 |
|
|
|
|
|
| |
Hong Kong / China (4.4%) |
|
|
| ||
3,400 |
| China Mobile, Ltd. (Communications) |
| 183,260 |
|
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 296,100 |
|
2,528 |
| HSBC Holdings, p.l.c. (Finance) |
| 46,409 |
|
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 339,030 |
|
334,000 |
| Petrochina (Energy Minerals) |
| 492,163 |
|
31,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 380,353 |
|
|
|
|
|
| |
|
|
|
| 1,737,315 |
|
|
|
|
|
| |
India * (0.8%) |
|
|
| ||
6,500 |
| ICICI Bank Ltd. (Finance) |
| 319,475 |
|
|
|
|
|
| |
Japan (20.6%) |
|
|
| ||
7,700 |
| AFLAC, Inc., A.D.R. (Finance) |
| 395,780 |
|
20,500 |
| Asahi Breweries (Consumer Non-Durables) |
| 317,223 |
|
10,500 |
| Canon, Inc. (Electronic Tech.) |
| 614,721 |
|
65 |
| East Japan Railway (Transportation) |
| 500,020 |
|
5,900 |
| FANUC LTD. (Producer Mfg.) |
| 607,701 |
|
11,200 |
| Honda Motor Co., Ltd. (Producer Mfg.) |
| 408,114 |
|
14,200 |
| Ito En, Ltd. (Consumer Non Durables) |
| 465,687 |
|
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 284,141 |
|
46 |
| KDDI Corp. (Communications) |
| 340,079 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
13,000 |
| Kirin Holdings Company, Ltd. |
|
|
|
|
| (Consumer Non-Durables) |
| 194,008 |
|
7,000 |
| Millea Holdings, Inc. (Finance) |
| 286,813 |
|
40 |
| Mitsubishi UFJ Financial |
|
|
|
|
| Group, Inc. (Finance) |
| 440,283 |
|
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 216,883 |
|
52,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 482,546 |
|
20,000 |
| Nomura Holdings, Inc. (Finance) |
| 388,680 |
|
6,000 |
| Seven & I Holdings Co., Ltd. (Retail Trade) |
| 171,019 |
|
57,000 |
| SHIMIZU Corp. (Producer Mfg.) |
| 330,013 |
|
3,600 |
| Sony Corp. (Consumer Durables) |
| 184,932 |
|
50 |
| Sumitomo Mitsui Financial |
|
|
|
|
| Group, Inc. (Finance) |
| 465,606 |
|
7,500 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 483,420 |
|
5,200 |
| Yamada Denki Co. (Retail Trade) |
| 542,338 |
|
|
|
|
|
| |
|
|
|
| 8,120,007 |
|
|
|
|
|
| |
South Korea (0.6%) |
|
|
| ||
750 |
| Samsung Electronics Co., |
|
|
|
|
| G.D.R. (Electronic Tech.) |
| 229,733 |
|
|
|
|
|
| |
Europe (57.3%) |
|
|
| ||
Austria (0.5%) |
|
|
| ||
1,235 |
| Raiffeisen Intl. Bank Holding A.G. (Finance) |
| 196,315 |
|
|
|
|
|
| |
Czech Republic (1.7%) |
|
|
| ||
6,700 |
| Central European Media Enterprises, Ltd. |
|
|
|
|
| (Consumer Svcs.) (3) |
| 653,786 |
|
|
|
|
|
| |
Denmark (2.6%) |
|
|
| ||
2,450 |
| Genmab A/S (Health Technology) (3) |
| 157,177 |
|
13,000 |
| Vestas Wind Systems A/S |
|
|
|
|
| (Process Industries) (3) |
| 858,771 |
|
|
|
|
|
| |
|
|
|
| 1,015,948 |
|
|
|
|
|
| |
Finland (1.1%) |
|
|
| ||
15,050 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 423,056 |
|
|
|
|
|
| |
France (10.6%) |
|
|
| ||
12,136 |
| AXA (Finance) |
| 524,652 |
|
3,353 |
| BNP Paribas (Finance) |
| 400,128 |
|
5,700 |
| Business Objects, A.D.R. (Tech. Svcs.) (3) |
| 221,388 |
|
4,784 |
| Danone (Consumer Non-Durables) |
| 387,791 |
|
11,800 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 1,002,292 |
|
6,884 |
| Total, S.A. (Energy Minerals) |
| 560,248 |
|
14,150 |
| Veolia Environment (Utilities) |
| 1,108,988 |
|
|
|
|
|
| |
|
|
|
| 4,205,487 |
|
|
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Quantity | Name of Issuer | Market Value ($)(1) |
| |||
|
|
|
|
| ||
Germany (8.7%) |
|
|
| |||
2,500 |
| Allianz SE (Finance) |
| 586,104 |
| |
1,500 |
| Deutsche Bank AG (Finance) |
| 217,110 |
| |
5,250 |
| Fresenius AG (Health Tech.) |
| 399,543 |
| |
2,487 |
| Muenchener Rueckver (Finance) |
| 455,791 |
| |
1,485 |
| Puma AG (Consumer Durables) |
| 662,237 |
| |
10,892 |
| SAP AG (Tech. Services) |
| 560,016 |
| |
3,896 |
| Siemens AG (Producer Mfg.) |
| 560,743 |
| |
|
|
|
| |||
|
|
|
| 3,441,544 |
| |
|
|
|
| |||
Ireland (2.0%) |
|
|
| |||
21,920 |
| Anglo Irish Bank Corp. |
| 447,021 |
| |
26,750 |
| C&C Group (Consumer Non-Durables) |
| 360,549 |
| |
|
|
|
| |||
|
|
|
| 807,570 |
| |
|
|
|
| |||
Italy (2.2%) |
|
|
| |||
31,100 |
| Azimut Holdings SpA |
| 533,426 |
| |
21,450 |
| Banco Popolare di Milano Scarl (Finance) |
| 327,932 |
| |
|
|
|
| |||
|
|
|
| 861,358 |
| |
|
|
|
| |||
Netherlands (1.5%) |
|
|
| |||
6,496 |
| ING Groep N.V. (Finance) |
| 287,672 |
| |
7,180 |
| Philips Electronics N.V. (Consumer Durables) |
| 306,035 |
| |
|
|
|
| |||
|
|
|
| 593,707 |
| |
|
|
|
| |||
Norway (1.0%) |
|
|
| |||
6,400 |
| Telenor, A.D.R. (Communications) |
| 376,273 |
| |
|
|
|
| |||
Spain (1.7%) |
|
|
| |||
7,600 |
| Banco Bilbao Vizcaya, S.A. (Finance) |
| 185,288 |
| |
22,675 |
| Telefonica, S.A. (Communications) |
| 506,516 |
| |
|
|
|
| |||
|
|
|
| 691,804 |
| |
|
|
|
| |||
Sweden (1.4%) |
|
|
| |||
13,500 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 538,515 |
| |
|
|
|
| |||
Switzerland (11.5%) |
|
|
| |||
10,500 |
| ABB, Ltd., A.D.R. (Producer Manufacturing) |
| 237,300 |
| |
5,255 |
| Credit Suisse Group (Finance) |
| 374,530 |
| |
5,755 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 529,672 |
| |
1,563 |
| Nestle, S.A. (Consumer Non-Durables) |
| 594,287 |
| |
12,586 |
| Novartis, A.G. (Health Tech.) |
| 708,579 |
| |
2,146 |
| Panalpina Welttransport Holding |
|
|
| |
|
| (Transportation) (3) |
| 453,504 |
| |
3,767 |
| Roche Holdings, A.G. (Health Tech.) |
| 668,200 |
| |
3,620 |
| Synthes, Inc. (Health Tech.) (3) |
| 433,892 |
| |
9,282 |
| UBS, A.G. (Finance) |
| 557,405 |
| |
|
|
|
| |||
|
|
|
| 4,557,369 |
| |
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
United Kingdom (10.8%) |
|
|
| ||
43,910 |
| BAE Systems p.l.c. (Producer Manufacturing) |
| 356,798 |
|
15,266 |
| Barclays, p.l.c. (Finance) |
| 213,176 |
|
5,100 |
| BP p.l.c., A.D.R. (Energy Minerals) |
| 367,914 |
|
35,800 |
| Burberry Group, p.l.c. (Retail Trade) |
| 493,451 |
|
7,100 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 371,827 |
|
12,300 |
| Pearson plc (Consumer Services) |
| 207,132 |
|
9,835 |
| Reckitt Benckiser, p.l.c. |
| 539,680 |
|
28,281 |
| Royal Bank of Scotland (Finance) |
| 359,172 |
|
60,712 |
| Tesco, p.l.c. (Retail Trade) |
| 509,770 |
|
184,359 |
| Vodafone Group, p.l.c. (Communications) |
| 620,690 |
|
15,354 |
| WPP Group p.l.c. (Consumer Svcs.) |
| 230,578 |
|
|
|
|
|
| |
|
|
|
| 4,270,188 |
|
|
|
|
|
| |
Latin America (4.1%) |
|
|
| ||
Argentina (1.2%) |
|
|
| ||
9,850 |
| Tenaris S.A., A.D.R. (Industrial Services) |
| 482,256 |
|
|
|
|
|
| |
Mexico (2.9%) |
|
|
| ||
9,900 |
| NII Holdings, Inc. (Communications) (3) |
| 799,326 |
|
88,260 |
| Wal-Mart de Mexico (Retail Trade) |
| 335,311 |
|
|
|
|
|
| |
|
|
|
| 1,134,637 |
|
|
|
|
|
| |
North America (1.7%) |
|
|
| ||
Canada (0.7%) |
|
|
| ||
6,300 |
| Agrium, Inc. (Process Industries) |
| 275,625 |
|
|
|
|
|
| |
|
|
|
|
|
|
United States (1.0%) |
|
|
| ||
10,200 |
| News Corp., Ltd., A.D.R. (Consumer Svcs.) |
| 216,342 |
|
5,529 |
| VeriFone Holdings, Inc. (Commercial Svcs.) (3) |
| 194,897 |
|
|
|
|
|
| |
|
|
|
| 411,239 |
|
|
|
|
|
| |
Total common stocks |
|
|
| ||
(cost: $24,241,081) |
| 38,820,132 |
| ||
|
|
|
|
| |
Closed-End Mutual Fund (1.0%) (2) |
|
|
| ||
9,500 |
| India Fund* (Consumer Svcs.) |
| 414,675 |
|
|
|
|
|
| |
(cost: $232,799) |
|
|
| ||
|
|
|
|
|
|
Short Term Securities (0.8%) (2) |
|
|
| ||
328,000 |
| Sit Money Market Fund, 4.96% (4) |
| 328,000 |
|
|
|
|
|
| |
(cost: $328,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $24,801,880) (5) |
| $ 39,562,807 |
| ||
|
|
|
|
|
* The fund’s total investment in India including the India Fund comprises 1.8% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
31
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Kent L. Johnson, Robert W. Sit, Matt T. Loucks, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Small Cap Growth Fund returned +19.96% over the past twelve months. This compares to the +16.83% return for the Russell 2000® Growth Index and the +16.43% gain for the Russell 2000® Index.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $40.14 Per Share |
6/30/06: |
| $33.46 Per Share |
|
|
|
Total Net Assets: |
| $105.8 Million |
|
|
|
Weighted Average Market Cap: |
| $3.6 Billion |
|
|
|
|
PORTFOLIO STRUCTURE - BY SECTOR |
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
| |||
|
|
| Sit Small |
| Russell |
| Russell | ||||
|
|
|
|
|
|
|
|
|
|
| |
| 3 Month** |
| 10.97 | % |
| 6.69 | % |
| 4.42 | % | |
| 6 Month** |
| 17.33 |
|
| 9.33 |
|
| 6.45 |
| |
| 1 Year |
| 19.96 |
|
| 16.83 |
|
| 16.43 |
| |
| 5 Year |
| 13.77 |
|
| 13.08 |
|
| 13.88 |
| |
| 10 Year |
| 10.50 |
|
| 5.28 |
|
| 9.06 |
| |
| Inception |
| 13.89 |
|
| 8.20 |
|
| 11.47 |
| |
| (7/1/94) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit Small |
| Russell |
| Russell | ||||
|
|
|
|
|
|
|
|
|
|
| |
| 1 Year |
| 19.96 | % |
| 16.83 | % |
| 16.43 | % | |
| 5 Year |
| 90.60 |
|
| 84.91 |
|
| 91.53 |
| |
| 10 Year |
| 171.39 |
|
| 67.31 |
|
| 138.03 |
| |
| Inception |
| 442.95 |
|
| 178.66 |
|
| 310.61 |
| |
| (7/1/94) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/07. | **Not annualized. | ||||||||||
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance.
|
|
(1) | An unmanaged index that measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. |
(2) | An unmanaged index which measures the performance of the 2,000 smallest companies in the Russell 3000 Index (an index of the 3,000 largest U.S. companies based on total market capitalization). |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/97 and held until 6/30/07 would have grown to $27,139 in the Fund or $16,731 in the Russell 2000® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
1. |
| Frontier Oil Corp. |
2. |
| Commscope Inc. |
3. |
| Affiliated Managers Group, Inc. |
4. |
| Arena Resources, Inc. |
5. |
| Southwestern Energy Co. |
6. |
| SBA Communications Corp. |
7. |
| Coach, Inc. |
8. |
| Arris Group, Inc. |
9. |
| RTI International Metals, Inc. |
10. |
| Celgene Corp. |
|
| Total Number of Holdings: 93 |
33
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Common Stocks (98.6%) (2) |
|
|
| ||
Commercial Services (2.1%) |
|
|
| ||
21,500 |
| Aegean Marine Petroleum Network, Inc. |
| 408,930 |
|
15,100 |
| FactSet Research Systems, Inc. |
| 1,032,085 |
|
15,900 |
| Getty Images, Inc. (3) |
| 760,179 |
|
|
|
|
|
| |
|
|
|
| 2,201,194 |
|
|
|
|
|
| |
Communications (4.0%) |
|
|
| ||
14,900 |
| NII Holdings, Inc. (3) |
| 1,203,026 |
|
62,650 |
| SBA Communications Corp. (3) |
| 2,104,413 |
|
46,700 |
| Time Warner Telecom, Inc. (3) |
| 938,670 |
|
|
|
|
|
| |
|
|
|
| 4,246,109 |
|
|
|
|
|
| |
Consumer Durables (1.5%) |
|
|
| ||
31,600 |
| Scientific Games Corp. (3) |
| 1,104,420 |
|
15,100 |
| THQ, Inc. (3) |
| 460,852 |
|
|
|
|
|
| |
|
|
|
| 1,565,272 |
|
|
|
|
|
| |
Consumer Non-Durables (3.2%) |
|
|
| ||
43,200 |
| Coach, Inc. (3) |
| 2,047,248 |
|
30,000 |
| Hansen Natural Corp. (3) |
| 1,289,400 |
|
|
|
|
|
| |
|
|
|
| 3,336,648 |
|
|
|
|
|
| |
Consumer Services (1.0%) |
|
|
| ||
20,700 |
| Life Time Fitness, Inc. (3) |
| 1,101,861 |
|
|
|
|
|
| |
| |||||
Electronic Technology (13.0%) |
|
|
| ||
114,800 |
| Arris Group, Inc. (3) |
| 2,019,332 |
|
44,600 |
| CommScope, Inc. (3) |
| 2,602,410 |
|
30,050 |
| Fairchild Semiconductor International, Inc. (3) |
| 580,566 |
|
29,160 |
| Intersil Corp. |
| 917,374 |
|
32,300 |
| Microsemi Corp. (3) |
| 773,585 |
|
26,900 |
| MICROS Systems, Inc. (3) |
| 1,463,360 |
|
29,400 |
| Radyne Corp. (3) |
| 313,698 |
|
25,000 |
| Silicon Laboratories, Inc. (3) |
| 865,250 |
|
5,700 |
| Silicon Motion Technology Corp. (3) |
| 141,531 |
|
112,850 |
| Sonus Networks, Inc. (3) |
| 961,482 |
|
36,100 |
| Trimble Navigation, Ltd. (3) |
| 1,162,420 |
|
25,200 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
| 1,009,512 |
|
14,700 |
| ViaSat, Inc. (3) |
| 471,870 |
|
20,800 |
| Xyratex, Ltd. (3) |
| 462,384 |
|
|
|
|
|
| |
|
|
|
| 13,744,774 |
|
|
|
|
|
| |
Energy Minerals (7.6%) |
|
|
| ||
42,050 |
| Arena Resources, Inc. (3) |
| 2,443,525 |
|
75,900 |
| Frontier Oil Corp. |
| 3,322,143 |
|
51,600 |
| Southwestern Energy Co. (3) |
| 2,296,200 |
|
|
|
|
|
| |
|
|
|
| 8,061,868 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Finance (6.0%) |
|
|
| ||
19,775 |
| Affiliated Managers Group, Inc. (3) |
| 2,546,229 |
|
37,900 |
| Aspen Insurance Holdings, Ltd. |
| 1,063,853 |
|
21,500 |
| Boston Private Financial Holdings, Inc. |
| 577,705 |
|
24,400 |
| Cowen Group, Inc. (3) |
| 437,004 |
|
21,400 |
| National Financial Partners Corp. |
| 991,034 |
|
14,400 |
| The Navigators Group, Inc. (3) |
| 776,160 |
|
|
|
|
|
| |
|
|
|
| 6,391,985 |
|
|
|
|
|
| |
Health Services (6.6%) |
|
|
| ||
28,200 |
| Allscripts Healthcare Solutions, Inc. (3) |
| 718,536 |
|
18,200 |
| Covance, Inc. (3) |
| 1,247,792 |
|
22,900 |
| Healthways, Inc. (3) |
| 1,084,773 |
|
30,500 |
| Psychiatric Solutions, Inc. (3) |
| 1,105,930 |
|
24,900 |
| Radiation Therapy Services, |
| 655,866 |
|
25,300 |
| Stericycle, Inc. (3) |
| 1,124,838 |
|
28,200 |
| VCA Antech, Inc. (3) |
| 1,062,858 |
|
|
|
|
|
| |
|
|
|
| 7,000,593 |
|
|
|
|
|
| |
Health Technology (15.9%) |
|
|
| ||
30,000 |
| Accuray, Inc. (3) |
| 665,400 |
|
35,900 |
| Amylin Pharmaceuticals, Inc. (3) |
| 1,477,644 |
|
30,900 |
| Celgene Corp. (3) |
| 1,771,497 |
|
103,650 |
| CryoLife, Inc. (3) |
| 1,348,487 |
|
59,200 |
| CV Therapeutics, Inc. (3) |
| 782,032 |
|
22,100 |
| Immucor, Inc. (3) |
| 618,137 |
|
12,600 |
| Intuitive Surgical, Inc. (3) |
| 1,748,502 |
|
36,200 |
| Kyphon, Inc. (3) |
| 1,743,030 |
|
30,900 |
| Lifecell Corp. (3) |
| 943,686 |
|
63,400 |
| NuVasive, Inc. (3) |
| 1,712,434 |
|
16,900 |
| Palomar Medical Technologies, Inc. (3) |
| 586,599 |
|
35,000 |
| PerkinElmer, Inc. |
| 912,100 |
|
18,500 |
| ResMed, Inc. (3) |
| 763,310 |
|
26,696 |
| SurModics, Inc. (3) |
| 1,334,800 |
|
23,800 |
| Thoratec Corp. (3) |
| 437,682 |
|
|
|
|
|
| |
|
|
|
| 16,845,340 |
|
|
|
|
|
| |
Industrial Services (8.3%) |
|
|
| ||
40,000 |
| Chicago Bridge & Iron Co. |
| 1,509,600 |
|
13,400 |
| Core Laboratories N.V. (3) |
| 1,362,646 |
|
19,400 |
| Flotek Industries, Inc. (3) |
| 1,163,030 |
|
17,000 |
| Lufkin Industries, Inc. |
| 1,097,350 |
|
18,150 |
| McDermott International, |
| 1,508,628 |
|
34,100 |
| Sterling Constructioin Company, Inc. (3) |
| 721,215 |
|
30,000 |
| URS Corp. (3) |
| 1,456,500 |
|
|
|
|
|
| |
|
|
|
| 8,818,969 |
|
|
|
|
|
|
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Non-Energy Minerals (2.2%) |
|
|
| ||
5,100 |
| Haynes International, Inc. (3) |
| 430,593 |
|
25,200 |
| RTI International Metals, Inc. (3) |
| 1,899,324 |
|
|
|
|
|
| |
|
|
|
| 2,329,917 |
|
|
|
|
|
| |
Process Industries (1.9%) |
|
|
| ||
58,900 |
| Landec Corp. (3) |
| 789,260 |
|
39,400 |
| UAP Holding Corp. |
| 1,187,516 |
|
|
|
|
|
| |
|
|
|
| 1,976,776 |
|
|
|
|
|
| |
Producer Manufacturing (10.0%) |
|
|
| ||
35,425 |
| AMETEK, Inc. |
| 1,405,664 |
|
7,800 |
| Ampco-Pittsburgh Corp. |
| 312,702 |
|
23,500 |
| Anixter International, Inc. (3) |
| 1,767,435 |
|
18,900 |
| Astec Industries, Inc. (3) |
| 797,958 |
|
33,300 |
| IDEX Corp. |
| 1,283,382 |
|
17,925 |
| Joy Global, Inc. |
| 1,045,565 |
|
29,850 |
| Kaydon Corp. |
| 1,555,782 |
|
26,600 |
| Roper Industries, Inc. |
| 1,518,860 |
|
18,300 |
| Teledyne Technologies, Inc. (3) |
| 840,885 |
|
|
|
|
|
| |
|
|
|
| 10,528,233 |
|
|
|
|
|
| |
Retail Trade (4.1%) |
|
|
| ||
25,700 |
| DSW, Inc. (3) |
| 894,874 |
|
31,700 |
| GameStop Corp. (3) |
| 1,239,470 |
|
32,800 |
| Jos. A. Bank Clothiers, Inc. (3) |
| 1,360,216 |
|
16,800 |
| The Men’s Wearhouse, Inc. |
| 857,976 |
|
|
|
|
|
| |
|
|
|
| 4,352,536 |
|
|
|
|
|
| |
Technology Services (9.2%) |
|
|
| ||
59,200 |
| ANSYS, Inc. (3) |
| 1,568,800 |
|
19,400 |
| Business Objects S.A., A.D.R. (3) |
| 753,496 |
|
47,700 |
| Citrix Systems, Inc. (3) |
| 1,606,059 |
|
103,050 |
| Informatica Corp. (3) |
| 1,522,049 |
|
38,200 |
| j2 Global Communications, |
| 1,333,180 |
|
38,800 |
| Quest Software, Inc. (3) |
| 628,172 |
|
10,300 |
| SAVVIS, Inc. (3) |
| 509,953 |
|
15,600 |
| Syntel, Inc. |
| 474,084 |
|
35,400 |
| The Ultimate Software Group, Inc. (3) |
| 1,024,122 |
|
9,100 |
| ValueClick, Inc. (3) |
| 268,086 |
|
|
|
|
|
| |
|
|
|
| 9,688,001 |
|
|
|
|
|
| |
Transportation (0.9%) |
|
|
| ||
36,200 |
| UTI Worldwide, Inc. |
| 969,798 |
|
|
|
|
|
| |
|
|
|
|
|
|
Utilities (1.1%) |
|
|
| ||
23,700 |
| Equitable Resources, Inc. |
| 1,174,572 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
|
|
| ||
(cost: $73,805,456) |
| 104,334,446 |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
| ||
Short-Term Securities (1.4%) (2) |
|
|
| ||
1,530,000 |
| Sit Money Market Fund, |
| 1,530,000 |
|
|
|
|
|
| |
(cost: $1,530,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $75,335,456) (5) |
| $105,864,446 |
| ||
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
35
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Robert W. Sit, Mark A. Pepper, Matt T. Loucks |
|
|
|
|
|
|
|
|
The Sit Science and Technology Growth Fund returned +14.47% over the past twelve months, compared to the +20.59% return for the NYSE Arca Technology 100 Index.
Science and technology stocks gained solid ground over the past year, as attractive valuations and strong earnings growth drove investor interest in the sector. Despite higher share prices compared to one year ago, we believe fundamentals continue to support a positive outlook over the intermediate- and longer-term for most science and technology industries for several reasons. First, investor sentiment surrounding growth stocks is improving, as most growth indices have outperformed their value counterparts in recent months. Since science and technology stocks carry large weights within growth indices, this change in sentiment clearly benefits the sector. Second, fundamentals are sound across most technology-related businesses, and our research team continues to identify numerous secular growth themes in many diverse areas, such as network security, wireless communications, data storage, business intelligence software, biotechnology and medical devices. Importantly, strong business fundamentals are driving earnings growth for companies in the Fund; we estimate that the median earnings growth rate was +27% for the first quarter of 2007 (more than twice the earnings growth rate of the S&P 500 Index). Third, in addition to strong earnings growth, balance sheets within the science and technology sector continue to be exceptional. We estimate that 49 out of 57 companies currently held in the Fund have cash on the balance sheets that exceeds debt levels. In addition to providing strong potential for share repurchases and dividends, strong balance sheets tend to be a key driver that propels merger and acquisition activity.
The Fund’s relative return (to the Arca Tech 100 Index) was negatively impacted over the past twelve months by holdings in the technology services (NAVTEQ, Global Payments), health technology (Amylin Pharmaceuticals, Vertex Pharmaceuticals) and producer manufacturing (Energy Conversion Devices) sectors. The Fund’s holdings within the electronic technology sector helped relative returns over the period, led by strong gains in Advanced Energy Industries, Cisco Systems, and Apple. As of June 30th, the Fund was 99% invested in equities, with the largest sector weights in electronic technology, technology services and health technology.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies principally engaged in science and technology business activities. Such companies include those whose assets, gross income, or net profits are significantly committed to, or derived from, science and technology. The Adviser seeks stocks of science and technology companies having superior growth potential in virtually any industry in which they may be found.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $11.47 Per Share |
6/30/06: |
| $10.02 Per Share |
|
|
|
Total Net Assets: |
| $12.0 Million |
|
|
|
Weighted Average Market Cap: |
| $45.6 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
|
| ||||||
|
|
| Sit |
| NYSE Arca |
| Nasdaq | |||||||
| 3 Month** |
| 8.21 | % |
| 7.26 | % |
| 7.50 | % | ||||
| 6 Month** |
| 6.70 |
|
| 8.01 |
|
| 7.79 |
| ||||
| 1 Year |
| 14.47 |
|
| 20.59 |
|
| 19.85 |
| ||||
| 3 Year |
| 4.61 |
|
| 8.74 |
|
| 8.33 |
| ||||
| 5 Year |
| 8.81 |
|
| 12.99 |
|
| 12.21 |
| ||||
| Inception |
| 1.79 |
|
| 13.22 |
|
| 5.46 |
| ||||
| (12/31/97) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
| |||||||
|
|
| Sit |
| NYSE Arca |
| Nasdaq | |||||||
| 1 Year |
| 14.47 | % |
| 20.59 | % |
| 19.85 | % | ||||
| 3 Year |
| 14.47 |
|
| 28.58 |
|
| 27.12 |
| ||||
| 5 Year |
| 52.53 |
|
| 84.13 |
|
| 77.91 |
| ||||
| Inception |
| 18.38 |
|
| 225.45 |
|
| 65.77 |
| ||||
| (12/31/97) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/07 | **Not annualized. | |||||||||||||
|
|
|
|
(1) | An unmanaged index that measures the performance of 100 technology-related exchange-listed and over-the-counter stocks. |
(2) | A broad-based capitalization-weighted index that measures stocks in all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. The index includes over 3,000 companies. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (12/31/97) and held until 6/30/07 would have grown to $11,838 in the Fund or $32,545 in the ArcaEx Tech 100 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
1. |
| Cisco Systems, Inc. |
2. |
| Google, Inc. |
3. |
| Celgene Corp. |
4. |
| Apple Computer, Inc. |
5. |
| Genentech, Inc. |
6. |
| Thermo Fisher Scientific Inc. |
7. |
| Cognizant Tech Solutions Corp. |
8. |
| Analog Devices, Inc. |
9. |
| Hewlett-Packard Co. |
10. |
| Amylin Pharmaceuticals, Inc. |
|
| Total Number of Holdings: 58 |
37
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (99.5%) (2) |
|
|
| ||
|
|
|
|
|
|
Consumer Durables (1.5%) |
|
|
| ||
3,800 |
| Electronic Arts, Inc (3) |
| 179,816 |
|
|
|
|
|
| |
Electronic Technology (37.5%) |
|
|
| ||
5,500 |
| Agilent Technologies, Inc. (3) |
| 211,420 |
|
7,200 |
| Analog Devices, Inc. |
| 271,008 |
|
3,100 |
| Apple Computer, Inc. (3) |
| 378,324 |
|
9,000 |
| Broadcom Corp. (3) |
| 263,250 |
|
2,500 |
| Ciena Corp. (3) |
| 90,325 |
|
22,000 |
| Cisco Systems, Inc. (3) |
| 612,700 |
|
14,300 |
| EMC Corp. (3) |
| 258,830 |
|
6,000 |
| Hewlett-Packard Co. |
| 267,720 |
|
7,000 |
| Intel Corp. |
| 166,320 |
|
5,200 |
| LM Ericsson, A.D.R. |
| 207,428 |
|
2,500 |
| Lam Research Corp. (3) |
| 128,500 |
|
11,000 |
| Marvell Technology Group, Ltd. (3) |
| 200,310 |
|
1,200 |
| Microsemi Corp. (3) |
| 28,740 |
|
5,300 |
| Network Appliance, Inc. (3) |
| 154,760 |
|
6,700 |
| Nokia Corp. |
| 188,337 |
|
6,000 |
| Qualcomm, Inc. |
| 260,340 |
|
13,000 |
| Radyne ComStream, Inc. (3) |
| 138,710 |
|
4,100 |
| Silicon Laboratories Inc. (3) |
| 141,901 |
|
2,650 |
| Silicon Motion Technology Corp. (3) |
| 65,800 |
|
3,200 |
| Texas Instruments, Inc. |
| 120,416 |
|
7,300 |
| Xilinx, Inc. |
| 195,421 |
|
7,100 |
| Xyratex, Ltd. (3) |
| 157,833 |
|
|
|
|
|
| |
|
|
|
| 4,508,393 |
|
|
|
|
|
| |
Health Technology (31.9%) |
|
|
| ||
5,300 |
| Accuray, Inc. (3) |
| 117,554 |
|
1,300 |
| Alcon, Inc. |
| 175,383 |
|
4,000 |
| Allergan, Inc. |
| 230,560 |
|
6,500 |
| Amylin Pharmaceuticals, Inc. (3) |
| 267,540 |
|
6,800 |
| Celgene Corp. (3) |
| 389,844 |
|
10,900 |
| CV Therapeutics, Inc. (3) |
| 143,989 |
|
5,000 |
| Genentech, Inc. (3) |
| 378,300 |
|
6,000 |
| Gilead Sciences, Inc. (3) |
| 232,620 |
|
1,400 |
| Intuitive Surgical, Inc. (3) |
| 194,278 |
|
4,300 |
| Kyphon, Inc. (3) |
| 207,045 |
|
3,300 |
| Millipore Corp. (3) |
| 247,797 |
|
8,600 |
| NuVasive, Inc. (3) |
| 232,286 |
|
10,000 |
| Sirtris Pharmaceuticals, Inc. (3) |
| 98,700 |
|
4,000 |
| Surmodics, Inc. (3) |
| 200,000 |
|
3,100 |
| St. Jude Medical, Inc. (3) |
| 128,619 |
|
6,800 |
| Thermo Fisher Scientific, Inc. (3) |
| 351,696 |
|
6,000 |
| Thoratec Corp. (3) |
| 110,340 |
|
4,800 |
| Vertex Pharmaceuticals, Inc. (3) |
| 137,088 |
|
|
|
|
| �� |
|
|
|
|
| 3,843,639 |
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Producer Manufacturing (2.0%) |
|
|
| ||
2,500 |
| The Boeing Company |
| 240,400 |
|
|
|
|
|
| |
|
|
|
|
|
|
Technology Services (26.6%) |
|
|
| ||
6,600 |
| Adobe Systems, Inc. (3) |
| 264,990 |
|
3,500 |
| Akamai Technologies, Inc. (3) |
| 170,240 |
|
8,800 |
| ANSYS, Inc. (3) |
| 233,200 |
|
5,500 |
| Autodesk, Inc. |
| 258,940 |
|
1,200 |
| Baidu.com, Inc. (3) |
| 201,576 |
|
4,200 |
| Citrix Systems, Inc. (3) |
| 141,414 |
|
3,900 |
| Cognizant Tech. Solutions Corp. (3) |
| 292,851 |
|
5,000 |
| Global Payments, Inc. |
| 198,250 |
|
950 |
| Google, Inc. (3) |
| 497,211 |
|
5,000 |
| J2 Global Communications, Inc. (3) |
| 174,500 |
|
4,000 |
| McAfee, Inc. (3) |
| 140,800 |
|
8,500 |
| Microsoft Corp. |
| 250,495 |
|
10,000 |
| Oracle Corp. (3) |
| 197,100 |
|
2,500 |
| SAVVIS, Inc. (3) |
| 123,775 |
|
2,000 |
| ValueClick, Inc. (3) |
| 58,920 |
|
|
|
|
|
| |
|
|
|
| 3,204,262 |
|
|
|
|
|
| |
|
|
|
|
|
|
Total common stocks |
| 11,976,510 |
| ||
|
|
| |||
(cost: $9,616,785) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (0.7%) (2) |
|
|
| ||
81,000 |
| Sit Money Market Fund, 4.96% (4) |
| 81,000 |
|
|
|
|
|
| |
(cost: $81,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $9,697,785) (5) |
| $12,057,510 |
| ||
|
|
|
|
See accompanying notes to portfolios of investments on page 44. |
38
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
39
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Eugene C. Sit, Roger J. Sit, Raymond E. Sit |
|
|
|
|
|
|
|
|
The Sit Developing Markets Growth Fund outperformed the MSCI Emerging Markets Index, appreciating +43.82% for the latest fiscal year versus +41.76%. Positive stock selection and allocation on a regional and country basis were the primary drivers. The commodity-exposed holdings such as energy and materials stocks were positive contributors along with consumer-related investments and utility holdings. This strong performance was partially offset by the Fund’s investments in financial and information technology holdings. Additionally, currency exposure (e.g. overweight dollar-pegged assets and Latin America) was the key deterrent to the positive absolute and relative performance.
The Fund increased its overweight exposure in Asia to 61.8% versus a weight of 53.7% for the Index. Most of this increase has come from new investments in China, such as Ajisen Holdings, China 3C Group, China Mobile, Focus Media, Homes Inn and Hotels Management, Huabao International, New Oriental Education, and Travelsky Technology.
The weight in Latin America remained virtually unchanged at 23.1%, but is still overweight the Index weight of 20.4% The Fund’s exposure is through investments in commodity-related holdings (energy and materials) and consumer-related stocks (retail and telecommunication).
Given better prospects in Asia, the Fund’s exposure to Eastern Europe decreased to 5.6%, underweight the Index at 14.8%. The Eastern Europe investments are consumer consumption oriented, focusing on the utility, media, and telecom sectors. In addition, the Fund has exposure to commodity-related holdings.
Similar to last year, the Fund continues to be underweight the Middle East and African region at 4.1% versus the Index at 11.1%. The Fund’s Israeli holdings consist of global companies with only a portion of operations in the Middle East and excellent contingency plans while the South African holdings consist of energy, industrial, and media stocks.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The Fund seeks to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies domiciled or operating in a developing market. In selecting investments for the Fund, the Sub-Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Sub-Adviser seeks industries and sectors that appear to have strong earnings growth prospects. Within the selected industries and sectors, the Sub-Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/07: |
| $24.94 Per Share |
6/30/06: |
| $17.38 Per Share |
|
|
|
Total Net Assets: |
| $18.4 Million |
|
|
|
Weighted Average Market Cap: |
| $37.1 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit |
| MSCI |
| MSCI |
| ||||
3 Month** |
| 14.39 | % |
| 14.06 | % |
| 13.91 | % |
| |
6 Month** |
| 18.65 |
|
| 16.11 |
|
| 15.35 |
|
| |
1 Year |
| 43.82 |
|
| 41.76 |
|
| 43.32 |
|
| |
5 Year |
| 25.54 |
|
| 27.08 |
|
| 25.90 |
|
| |
10 Year |
| 6.85 |
|
| 6.70 |
|
| 6.53 |
|
| |
Inception |
| 7.44 |
|
| 6.29 |
|
| n/a |
|
| |
(7/1/94) |
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
| Sit |
| MSCI |
|
|
| ||||
1 Year |
| 43.82 | % |
| 41.76 | % |
| 43.32 | % |
| |
5 Year |
| 211.84 |
|
| 231.41 |
|
| 216.33 |
|
| |
10 Year |
| 93.95 |
|
| 91.24 |
|
| 88.31 |
|
| |
Inception |
| 154.49 |
|
| 121.15 |
|
| n/a |
|
| |
(7/1/94) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/07 |
|
| **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 6/30/97 and held until 6/30/07 would have increased to $19,395 in the Fund, or $19,124 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
41
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
| ||
|
|
| ||
| Portfolio of Investments - June 30, 2007 |
| ||
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
|
|
1. | America Movil, A.D.R. |
2. | Samsung Electronics |
3. | Companhia Vale do Rio Doce, A.D.R. |
4. | BHP Billiton, Ltd., A.D.R. |
5. | Hon Hai Precision, G.D.R. |
6. | Petroleo Brasliero |
7. | China Communications |
8. | Reliance Industries |
9. | China Mobile, Ltd. |
10. | China Water Affairs Group |
| Total Number of Holdings: 78 |
|
|
|
|
|
Quantity |
| Name of Issuer Market Value ($)(1) | ||
|
|
|
|
|
Common Stocks (94.3%) (2) |
|
| ||
Africa/ Middle East (4.1%) | ||||
Israel (1.9%) | ||||
4,600 |
| Amdocs, Ltd. (Technology Svcs.) (3) |
| 183,172 |
5,000 |
| NICE Systems Ltd., A.D.R. (Electronic Tech.) (3) |
| 173,700 |
|
|
| ||
|
|
|
| 356,872 |
|
|
| ||
South Africa (2.2%) | ||||
5,300 |
| Bidvest Group, Ltd. (Consumer Services) |
| 108,225 |
6,900 |
| Naspers, Ltd. (Consumer Services) |
| 178,077 |
3,000 |
| Sasol (Energy Minerals) |
| 112,620 |
|
|
| ||
|
|
|
| 398,922 |
|
|
| ||
Asia (60.6%) | ||||
Australia (4.2%) |
| |||
7,910 |
| BHP Billiton, Ltd., A.D.R. (Non-Energy |
|
|
|
| Minerals) |
| 472,622 |
1,000 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) |
| 306,120 |
|
|
| ||
|
|
|
| 778,742 |
|
|
| ||
China / Hong Kong (21.7%) |
|
| ||
100,000 |
| Ajisen China Holdings, Ltd. |
|
|
|
| (Consumer Services) (3) |
| 105,911 |
14,500 |
| China 3C Group, A.D.R. (Retail Trade) (3) |
| 89,755 |
240,000 |
| China Communications Construction. Co. |
|
|
|
| (Transportation) (3) |
| 429,785 |
4,533 |
| China Life Insurance Co., A.D.R. (Utilities) |
| 243,286 |
7,200 |
| China Mobile, Ltd. (Communications) |
| 388,080 |
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) |
| 240,195 |
660,000 |
| China Water Affairs Group (Utilities) (3) |
| 384,963 |
4,000 |
| Focus Media Holding, Ltd., A.D.R. |
|
|
|
| (Commercial Services) (3) |
| 202,000 |
2,500 |
| Home Inns & Hotels Mgmt., Inc., A.D.R. |
|
|
|
| (Consumer Services) (3) |
| 80,525 |
45,000 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 202,500 |
|
|
|
|
|
Quantity |
| Name of Issuer Market Value ($)(1) | ||
|
|
|
|
|
|
|
|
|
|
135,000 |
| Huabao International Holdings, Ltd. |
|
|
|
| (Consumer Non-Durables) |
| 130,374 |
4,100 |
| New Oriental Education & Technology |
|
|
|
| Group, A.D.R. (Consumer Svcs.) (3) |
| 220,252 |
180,000 |
| PetroChina Co. (Energy Minerals) |
| 265,237 |
120,808 |
| Ports Design, Ltd. (Retail Trade) |
| 339,960 |
300,000 |
| Shanghai Jin Jiang International Hotels Co. (Consumer Services) (3) |
| 155,413 |
6,000 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 72,219 |
90,000 |
| Travelsky Technology, Ltd. (Consumer Svcs.) |
| 77,016 |
96,000 |
| Tsingtao Brewery Co., Ltd. (Consumer Non-Durables) |
| 233,311 |
48,000 |
| Wumart Stores, Inc. (Retail Trade) (6) |
| 33,277 |
86,000 |
| Xinao Gas Holdings, Ltd. (Utlities) |
| 108,024 |
|
|
| ||
|
|
|
| 4,002,083 |
|
|
| ||
|
|
|
|
|
India * (5.1%) |
|
| ||
6,400 |
| ICICI Bank, A.D.R. (Finance) |
| 314,560 |
4,600 |
| Infosys Technologies, Ltd., A.D.R. (Tech- |
|
|
|
| nology Svcs.) |
| 231,748 |
4,700 |
| Reliance Industries, Ltd., G.D.R. |
|
|
|
| (Energy Minerals) |
| 392,491 |
|
|
| ||
|
|
|
| 938,799 |
|
|
| ||
Indonesia (1.5%) | ||||
71,500 |
| PT Astra International (Producer Mfg.) |
| 133,741 |
3,400 |
| PT Telekomunikasi, A.D.R. (Communications) |
| 146,540 |
|
|
| ||
|
|
|
| 280,281 |
|
|
| ||
Phillipines (1.9%) |
| |||
991,000 |
| Manila Water Co. (Utilities) |
| 267,838 |
61,100 |
| Union Bank of Philippines (Finance) |
| 81,907 |
|
|
| ||
|
|
|
| 349,745 |
|
|
| ||
Russia (3.8%) |
|
| ||
4,475 |
| Gazprom, A.D.R. (Energy Minerals) |
| 187,503 |
2,700 |
| LUKOIL, A.D.R. (Energy Minerals) |
| 207,090 |
2,800 |
| Vimpel Communications, A.D.R. |
|
|
|
| (Communications) (3) |
| 295,008 |
|
|
| ||
|
|
|
| 689,601 |
|
|
| ||
Singapore (1.6%) | ||||
51,600 |
| KS Energy Services, Ltd. (Energy Minerals) |
| 126,853 |
85,644 |
| Starhub, Ltd. (Communications) |
| 171,350 |
|
|
| ||
|
|
|
| 298,203 |
|
|
| ||
South Korea (12.7%) | ||||
550 |
| Cheil Communications, Inc. |
|
|
|
| (Commercial Svcs.) |
| 169,364 |
9,007 |
| Industrial Bank of Korea (Finance) |
| 183,766 |
5,200 |
| Korea Electric Power Corp. (Utilities) |
| 113,880 |
2,200 |
| Kookmin Bank (Finance) |
| 193,116 |
1,900 |
| Kookmin Bank, A.D.R. (Finance) |
| 166,668 |
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer Market Value ($)(1) | ||
|
|
|
|
|
1,800 |
| POSCO, A.D.R. (Non-Energy Minerals) |
| 216,000 |
1,080 |
| Samsung Electronics (Electronic Tech.) |
| 661,630 |
5,600 |
| Shinhan Financial Group (Finance) |
| 340,643 |
310 |
| Shinsegae Co., Ltd. (Retail Trade) |
| 201,992 |
3,100 |
| SK Telecom Co., A.D.R. (Communications) |
| 84,785 |
|
|
| ||
|
|
|
| 2,331,844 |
|
|
| ||
Taiwan (7.7%) | ||||
79,778 |
| Cathay Financial Holding Co., Ltd. |
|
|
|
| (Finance) |
| 190,549 |
26,272 |
| Hon Hai Precision Industry Co., Ltd. G.D.R. (Electronic Tech.) |
| 470,265 |
10,800 |
| Hon Hai Precision Industry Co., Ltd. |
|
|
|
| (Electronic Tech.) |
| 93,324 |
9,350 |
| MediaTek, Inc. (Electronic Tech.) |
| 145,658 |
111,362 |
| Taiwan Semiconductor Co. (Electronic Tech.) |
| 240,236 |
24,635 |
| Taiwan Semiconductor Manufacturing |
|
|
|
| Co., Ltd., A.D.R. (Electronic Tech.) |
| 274,191 |
|
|
| ||
|
|
|
| 1,414,223 |
|
|
| ||
Thailand (0.4%) |
|
| ||
22,500 |
| Bangkok Bank Public Co., Ltd. (Finance) |
| 79,508 |
|
|
| ||
Europe (5.6%) |
|
|
|
|
Czech Republic (3.7%) | ||||
3,500 |
| Central European Media Enterprises, Ltd. |
|
|
|
| (Consumer Services) (3) |
| 341,530 |
6,700 |
| CEZ (Utilities) |
| 345,113 |
|
|
| ||
|
|
|
| 686,643 |
|
|
| ||
United Kingdom (1.9%) | ||||
5,750 |
| Anglo American p.l.c. (Non-Energy Minerals) |
| 339,749 |
|
|
| ||
|
|
|
|
|
Latin America (23.1%) |
| |||
Argentina (1.2%) | ||||
4,650 |
| Tenaris S.A., A.D.R. (Industrial Svcs.) |
| 227,664 |
|
|
| ||
Brazil (10.0%) | ||||
4,800 |
| AES Tiete S.A. (Utilities) |
| 181,931 |
9,916 |
| Banco Bradesco S.A. (Finance) |
| 239,560 |
2,100 |
| Companhia Brasileira de Distribuicao Grupo Pao de Acucar, A.D.R. (Retail Trade) |
| 81,165 |
2,100 |
| Companhia de Bebidas das Americas |
|
|
|
| (Consumer Non-Durables) |
| 147,000 |
12,300 |
| Companhia Vale do Rio Doce, A.D.R. |
|
|
|
| (Non-Energy Minerals) |
| 547,965 |
3,883 |
| Embraer de Aeronautica, A.D.R. |
|
|
|
| (Producer Mfg.) |
| 187,199 |
17,340 |
| Petrobras (Energy Minerals) |
| 463,660 |
|
|
| ||
|
|
|
| 1,848,480 |
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer Market Value ($)(1) | ||
|
|
|
|
|
Mexico (10.5%) | ||||
10,800 |
| America Movil, A.D.R. (Communications) |
| 668,844 |
3,000 |
| Cemex S.A. de C.V., A.D.R. |
|
|
|
| (Non-Energy Minerals) |
| 110,700 |
6,400 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) |
| 176,704 |
4,200 |
| Homex, A.D.R. (Consumer Durables) (3) |
| 254,478 |
4,100 |
| NII Holdings, Inc. (Communications) (3) |
| 331,034 |
2,800 |
| Telefonos de Mexico, A.D.R. |
|
|
|
| (Communications) |
| 106,092 |
72,540 |
| Wal-Mart de Mexico (Retail Trade) |
| 275,589 |
|
|
| ||
|
|
|
| 1,923,441 |
|
|
| ||
Peru (1.4%) |
|
| ||
2,800 |
| Southern Copper Corp. |
|
|
|
| (Non-Energy Minerals) |
| 263,928 |
|
|
| ||
North America (0.9%) | ||||
United States (0.9%) | ||||
4,661 |
| VeriFone Holdings, Inc. |
|
|
|
| (Commercial Services) (3) |
| 164,300 |
|
|
| ||
|
|
|
|
|
Total common stocks |
| 17,373,028 | ||
|
|
| ||
(cost: $7,735,157) |
|
| ||
|
|
|
|
|
Closed-End Mutual Fund (1.2%) (2) | ||||
4,900 |
| India Fund* (Consumer Services) |
| 213,885 |
|
|
| ||
(cost: $115,283) |
|
| ||
| ||||
Short-Term Securities (4.0%) (2) | ||||
734,000 |
| Sit Money Market Fund, 4.96% (4) |
| 734,000 |
|
|
| ||
(cost: $734,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
|
| ||
(cost: $8,584,440) (5) |
| $18,320,913 | ||
|
|
|
|
|
|
| * | The fund’s total investment in India including the India Fund comprises 6.3% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 44.
43
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(1) | Securities are valued by procedures described in note 1 to the financial statements. |
|
|
(2) | Percentage figures indicate percentage of total net assets. |
|
|
(3) | Presently non-income producing securities. |
|
|
(4) | This security represents an investment in an affiliated party. See note 3 to the accompanying financial statements. |
|
|
(5) | At June 30, 2007, 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 |
| $ | 10,384,402 |
| $ | 34,127,676 |
| $ | 98,488,858 |
| $ | 139,745,893 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 2,292,552 |
| $ | 6,400,970 |
| $ | 28,434,583 |
| $ | 67,465,423 |
|
Gross unrealized depreciation |
|
| (139,594 | ) |
| (91,255 | ) |
| (1,318,058 | ) |
| (2,141,325 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 2,152,958 |
| $ | 6,309,715 |
| $ | 27,116,525 |
| $ | 65,324,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Science and |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
Cost for federal income tax purposes |
| $ | 24,804,716 |
| $ | 75,335,456 |
| $ | 9,744,897 |
| $ | 8,584,440 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 15,003,742 |
| $ | 32,382,102 |
| $ | 2,890,941 |
| $ | 9,756,306 |
|
Gross unrealized depreciation |
|
| (245,651 | ) |
| (1,853,112 | ) |
| (578,328 | ) |
| (19,833 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 14,758,091 |
| $ | 30,528,990 |
| $ | 2,312,613 |
| $ | 9,736,473 |
|
|
|
|
|
|
|
|
|
(6) | This securitiy has been identified by the investment adviser as an illiquid security. The value of this security at June 30, 2007, is $33,277 in the Developing Markets Growth Fund. |
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
45
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| |||
|
|
|
|
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 10,364,800 |
| $ | 34,101,773 |
| $ | 98,452,080 |
|
|
|
|
|
| ||||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 12,260,360 |
| $ | 39,674,391 |
| $ | 120,381,383 |
|
Investments in affiliated mutual funds |
|
| 277,000 |
|
| 763,000 |
|
| 5,224,000 |
|
Cash in bank on demand deposit |
|
| 353 |
|
| 2,453 |
|
| 567 |
|
Accrued interest and dividends receivable |
|
| 44,705 |
|
| 44,380 |
|
| 129,078 |
|
Receivable for investment securities sold |
|
| 19,219 |
|
| 347,107 |
|
| 239,843 |
|
Other receivables |
|
| — |
|
| 362 |
|
| 10,417 |
|
Receivable for Fund shares sold |
|
| — |
|
| — |
|
| 268,277 |
|
|
|
|
|
| ||||||
Total assets |
|
| 12,601,637 |
|
| 40,831,693 |
|
| 126,253,565 |
|
|
|
|
|
| ||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| 56,012 |
|
| 302,515 |
|
| 363,837 |
|
Payable for Fund shares redeemed |
|
| — |
|
| — |
|
| 48,815 |
|
Other payables |
|
| 6,126 |
|
| 550 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 10,160 |
|
| 31,965 |
|
| 99,486 |
|
|
|
|
|
| ||||||
Total liabilities |
|
| 72,298 |
|
| 335,030 |
|
| 512,138 |
|
|
|
|
|
| ||||||
Net assets applicable to outstanding capital stock |
| $ | 12,529,339 |
| $ | 40,496,663 |
| $ | 125,741,427 |
|
|
|
|
|
| ||||||
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 14,812,699 |
| $ | 32,681,884 |
| $ | 113,324,488 |
|
Undistributed (distributions in excess of) net investment income |
|
| 58,696 |
|
| 167,028 |
|
| 246,601 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,514,616 | ) |
| 1,312,133 |
|
| (14,982,965 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 2,172,560 |
|
| 6,335,618 |
|
| 27,153,303 |
|
|
|
|
|
| ||||||
|
| $ | 12,529,339 |
| $ | 40,496,663 |
| $ | 125,741,427 |
|
|
|
|
|
| ||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 739,911 |
|
| 2,613,437 |
|
| 2,858,273 |
|
Class S |
|
| — |
|
| 196,148 |
|
| — |
|
|
|
|
|
| ||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 12,529,339 |
| $ | 37,673,674 |
| $ | 125,741,427 |
|
Class S |
|
| — |
|
| 2,822,989 |
|
| — |
|
|
|
|
|
| ||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 16.93 |
| $ | 14.42 |
| $ | 43.99 |
|
Class S |
|
| — |
| $ | 14.39 |
|
| — |
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap |
| International |
| Small Cap |
| Science and |
| Developing |
| |||||
|
|
|
|
|
|
| ||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 139,662,273 |
| $ | 24,801,880 |
| $ | 75,335,456 |
| $ | 9,697,785 |
| $ | 8,584,440 |
|
|
|
|
|
|
|
| ||||||||||
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 201,455,991 |
| $ | 39,234,807 |
| $ | 104,334,446 |
| $ | 11,976,510 |
| $ | 17,586,913 |
|
Investments in affiliated mutual funds |
|
| 3,614,000 |
|
| 328,000 |
|
| 1,530,000 |
|
| 81,000 |
|
| 734,000 |
|
Cash in bank on demand deposit |
|
| 223 |
|
| — |
|
| 227 |
|
| 349 |
|
| 838 |
|
Accrued interest and dividends receivable |
|
| 91,451 |
|
| 146,976 |
|
| 19,379 |
|
| 4,162 |
|
| 63,148 |
|
Receivable for investment securities sold |
|
| 441,634 |
|
| — |
|
| — |
|
| — |
|
| 14,478 |
|
Other receivables |
|
| — |
|
| — |
|
| 51,707 |
|
| — |
|
| 5,896 |
|
Receivable for Fund shares sold |
|
| 5,000 |
|
| — |
|
| 10 |
|
| — |
|
| 59,127 |
|
|
|
|
|
|
|
| ||||||||||
Total assets |
|
| 205,608,299 |
|
| 39,709,783 |
|
| 105,935,769 |
|
| 12,062,021 |
|
| 18,464,400 |
|
|
|
|
|
|
|
| ||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| 13,122 |
|
| — |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| 104,932 |
|
| — |
|
| — |
|
| — |
|
Payable for Fund shares redeemed |
|
| 15,394 |
|
| — |
|
| 10,422 |
|
| — |
|
| 4,982 |
|
Other payables |
|
| 148,614 |
|
| 29,046 |
|
| — |
|
| 14,151 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 188,604 |
|
| 51,473 |
|
| 125,617 |
|
| 13,039 |
|
| 28,955 |
|
|
|
|
|
|
|
| ||||||||||
Total liabilities |
|
| 352,612 |
|
| 198,573 |
|
| 136,039 |
|
| 27,190 |
|
| 33,937 |
|
|
|
|
|
|
|
| ||||||||||
Net assets applicable to outstanding capital stock |
| $ | 205,255,687 |
| $ | 39,511,210 |
| $ | 105,799,730 |
| $ | 12,034,831 |
| $ | 18,430,463 |
|
|
|
|
|
|
|
| ||||||||||
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 142,565,784 |
| $ | 55,777,795 |
| $ | 112,343,799 |
| $ | 29,327,457 |
| $ | 8,406,243 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| 408,875 |
|
| — |
|
| — |
|
| 35,154 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (2,717,815) |
|
| (31,438,427 | ) |
| (37,073,059 | ) |
| (19,652,351 | ) |
| 241,891 |
|
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 65,407,718 |
|
| 14,762,967 |
|
| 30,528,990 |
|
| 2,359,725 |
|
| 9,747,175 |
|
|
|
|
|
|
|
| ||||||||||
|
| $ | 205,255,687 |
| $ | 39,511,210 |
| $ | 105,799,730 |
| $ | 12,034,831 |
| $ | 18,430,463 |
|
|
|
|
|
|
|
| ||||||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 13,066,539 |
|
| 2,112,751 |
|
| 2,635,779 |
|
| 1,049,408 |
|
| 738,965 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 205,255,687 |
| $ | 39,511,210 |
| $ | 105,799,730 |
| $ | 12,034,831 |
| $ | 18,430,463 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
| $ | 15.71 |
| $ | 18.70 |
| $ | 40.14 |
| $ | 11.47 |
| $ | 24.94 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
47
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| One Year Ended June 30, 2007 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| |||
|
|
|
|
| ||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 142,422 |
| $ | 844,374 |
| $ | 1,416,072 |
|
Interest |
|
| 236,212 |
|
| 49,411 |
|
| 306,395 |
|
|
|
|
|
| ||||||
Total income |
|
| 378,634 |
|
| 893,785 |
|
| 1,722,467 |
|
|
|
|
|
| ||||||
| ||||||||||
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 120,902 |
|
| 317,323 |
|
| 1,078,721 |
|
12b-1 Fee - Class S |
|
| — |
|
| 4,301 |
|
| — |
|
|
|
|
|
| ||||||
| ||||||||||
Total expenses |
|
| 120,902 |
|
| 321,624 |
|
| 1,078,721 |
|
|
|
|
|
| ||||||
| ||||||||||
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| ||||||
| ||||||||||
Total net expenses |
|
| 120,902 |
|
| 321,624 |
|
| 1,078,721 |
|
|
|
|
|
| ||||||
| ||||||||||
Net investment income (loss) |
|
| 257,732 |
|
| 572,161 |
|
| 643,746 |
|
|
|
|
|
| ||||||
| ||||||||||
Realized and unrealized gain (loss) on investments : |
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 445,217 |
|
| 1,542,542 |
|
| 4,367,479 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 919,520 |
|
| 3,970,722 |
|
| 12,770,846 |
|
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| ||||||
| ||||||||||
Net gain (loss) on investments |
|
| 1,364,737 |
|
| 5,513,264 |
|
| 17,138,325 |
|
|
|
|
|
| ||||||
| ||||||||||
Net increase (decrease) in net assets resulting from operations |
| $ | 1,622,469 |
| $ | 6,085,425 |
| $ | 17,782,071 |
|
|
|
|
|
|
|
* Dividends are net of foreign withholding tax of $65,719 and $29,460 in the International Growth Fund and Developing Markets Growth Fund, respectively.
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap |
| International |
| Small Cap |
| Science and |
| Developing |
| |||||
|
|
|
|
|
|
| ||||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income: |
|
|
|
|
|
|
|
|
|
|
| |||||
Dividends * |
| $ | 1,086,849 |
| $ | 948,492 |
| $ | 552,616 |
| $ | 47,908 |
| $ | 323,846 |
|
Interest |
|
| 525,243 |
|
| 30,914 |
|
| 154,162 |
|
| 17,715 |
|
| 15,654 |
|
|
|
|
|
|
|
| ||||||||||
Total income |
|
| 1,612,092 |
|
| 979,406 |
|
| 706,778 |
|
| 65,623 |
|
| 339,500 |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 2,400,076 |
|
| 673,475 |
|
| 1,500,055 |
|
| 186,676 |
|
| 302,129 |
|
12b-1 Fee - Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Total expenses |
|
| 2,400,076 |
|
| 673,475 |
|
| 1,500,055 |
|
| 186,676 |
|
| 302,129 |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Less fees and expenses absorbed by investment adviser |
|
| (192,006 | ) |
| (127,414 | ) |
| — |
|
| (18,668 | ) |
| — |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Total net expenses |
|
| 2,208,070 |
|
| 546,061 |
|
| 1,500,055 |
|
| 168,008 |
|
| 302,129 |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Net investment income (loss) |
|
| (595,978 | ) |
| 433,345 |
|
| (793,277 | ) |
| (102,385 | ) |
| 37,371 |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Realized and unrealized gain (loss) on investments : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 23,747,656 |
|
| 1,628,649 |
|
| 7,930,349 |
|
| 1,111,222 |
|
| 1,134,284 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 13,441,236 |
|
| 5,245,252 |
|
| 10,914,243 |
|
| 674,988 |
|
| 4,423,542 |
|
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| (1,238 | ) |
| — |
|
| — |
|
| (486 | ) |
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Net gain (loss) on investments |
|
| 37,188,892 |
|
| 6,872,663 |
|
| 18,844,592 |
|
| 1,786,210 |
|
| 5,557,340 |
|
|
|
|
|
|
|
| ||||||||||
| ||||||||||||||||
Net increase (decrease) in net assets resulting from operations |
| $ | 36,592,914 |
| $ | 7,306,008 |
| $ | 18,051,315 |
| $ | 1,683,825 |
| $ | 5,594,711 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 54.
49
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| ||||||||
|
|
|
| ||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 257,732 |
| $ | 216,169 |
| $ | 572,161 |
| $ | 410,743 |
|
Net realized gain (loss) on investments |
|
| 445,217 |
|
| 557,766 |
|
| 1,542,542 |
|
| 333,820 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 919,520 |
|
| (46,730 | ) |
| 3,970,722 |
|
| 1,571,176 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 1,622,469 |
|
| 727,205 |
|
| 6,085,425 |
|
| 2,315,739 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
| �� |
|
|
Class I |
|
| (256,000 | ) |
| (212,000 | ) |
| (496,446 | ) |
| (360,567 | ) |
Class S |
|
| — |
|
| — |
|
| (22,553 | ) |
| (432 | ) |
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| (421,852 | ) |
| (225,199 | ) |
Class S |
|
| — |
|
| — |
|
| (39,234 | ) |
| — |
|
|
|
|
|
|
| ||||||||
Total distributions |
|
| (256,000 | ) |
| (212,000 | ) |
| (980,085 | ) |
| (586,198 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 1,206,652 |
|
| 1,107,413 |
|
| 12,068,364 |
|
| 9,310,708 |
|
Class S |
|
| — |
|
| — |
|
| 2,731,531 |
|
| 148,812 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 254,122 |
|
| 210,264 |
|
| 881,856 |
|
| 553,551 |
|
Class S |
|
| — |
|
| — |
|
| 61,758 |
|
| 432 |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (1,914,798 | ) |
| (2,467,234 | ) |
| (4,265,483 | ) |
| (1,650,145 | ) |
Class S |
|
| — |
|
| — |
|
| (272,215 | ) |
| (103,054 | ) |
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (454,024 | ) |
| (1,149,557 | ) |
| 11,205,811 |
|
| 8,260,304 |
|
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| 912,445 |
|
| (634,352 | ) |
| 16,311,151 |
|
| 9,989,845 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 11,616,894 |
|
| 12,251,246 |
|
| 24,185,512 |
|
| 14,195,667 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 12,529,339 |
| $ | 11,616,894 |
| $ | 40,496,663 |
|
| 24,185,512 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 77,470 |
|
| 72,829 |
|
| 896,432 |
|
| 791,386 |
|
Class S |
|
| — |
|
| — |
|
| 207,573 |
|
| 12,109 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 16,162 |
|
| 13,980 |
|
| 67,065 |
|
| 47,474 |
|
Class S |
|
| — |
|
| — |
|
| 4,634 |
|
| 35 |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (120,814 | ) |
| (163,103 | ) |
| (318,156 | ) |
| (140,037 | ) |
Class S |
|
| — |
|
| — |
|
| (20,003 | ) |
| (8,200 | ) |
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| (27,182 | ) |
| (76,294 | ) |
| 837,545 |
|
| 702,767 |
|
|
|
|
|
|
| ||||||||
* includes undistributed net investment income |
| $ | 58,696 |
| $ | 56,964 |
| $ | 167,028 |
| $ | 113,866 |
|
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| ||||||||||||
|
|
|
|
| |||||||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 643,746 |
| $ | 396,309 |
|
| ($595,978 | ) |
| ($71,694 | ) | $ | 433,345 |
| $ | 307,462 |
|
Net realized gain (loss) on investments |
|
| 4,367,479 |
|
| 2,613,549 |
|
| 23,747,656 |
|
| 25,755,297 |
|
| 1,628,649 |
|
| 1,367,545 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 12,770,846 |
|
| 3,560,526 |
|
| 13,441,236 |
|
| 3,751,384 |
|
| 5,245,252 |
|
| 5,615,497 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (1,238 | ) |
| (2,930 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 17,782,071 |
|
| 6,570,384 |
|
| 36,592,914 |
|
| 29,434,987 |
|
| 7,306,008 |
|
| 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 |
|
| 32,745,007 |
|
| 48,327,703 |
|
| 6,847,730 |
|
| 32,211,296 |
|
| 2,625,666 |
|
| 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 |
|
| (26,645,574 | ) |
| (22,683,527 | ) |
| (29,726,106 | ) |
| (69,554,035 | ) |
| (5,109,084 | ) |
| (5,539,961 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
Increase (decrease) in net assets from capital share transactions |
|
| 6,816,488 |
|
| 25,784,149 |
|
| (22,878,376 | ) |
| (37,342,739 | ) |
| (2,168,341 | ) |
| (1,584,394 | ) |
|
|
|
|
|
|
|
| ||||||||||||
Total increase (decrease) in net assets |
|
| 23,868,559 |
|
| 32,212,524 |
|
| 13,714,538 |
|
| (7,907,752 | ) |
| 4,811,667 |
|
| 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 * |
| $ | 125,741,427 |
| $ | 101,872,868 |
| $ | 205,255,687 |
| $ | 191,541,149 |
| $ | 39,511,210 |
| $ | 34,699,543 |
|
|
|
|
|
|
|
|
| ||||||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 803,378 |
|
| 1,281,385 |
|
| 485,169 |
|
| 2,494,929 |
|
| 155,761 |
|
| 259,299 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 17,541 |
|
| 3,705 |
|
| — |
|
| — |
|
| 18,755 |
|
| 10,475 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (672,308 | ) |
| (608,057 | ) |
| (2,144,755 | ) |
| (5,452,712 | ) |
| (303,041 | ) |
| (396,344 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
| ||||||||||||
Net increase (decrease) |
|
| 148,611 |
|
| 677,033 |
|
| (1,659,586 | ) |
| (2,957,783 | ) |
| (128,525 | ) |
| (126,570 | ) |
|
|
|
|
|
|
|
| ||||||||||||
* includes undistributed net investment income |
| $ | 246,601 |
| $ | 332,855 |
| $ | — |
| $ | — |
| $ | 408,875 |
| $ | 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 |
| ||||||||
|
|
|
| ||||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| ($793,277 | ) |
| ($1,500,439 | ) |
| ($102,385 | ) |
| ($106,802 | ) |
Net realized gain (loss) on investments |
|
| 7,930,349 |
|
| 65,957,997 |
|
| 1,111,222 |
|
| 1,360,505 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 10,914,243 |
|
| (22,453,267 | ) |
| 674,988 |
|
| 256,256 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| 18,051,315 |
|
| 42,004,291 |
|
| 1,683,825 |
|
| 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 |
|
| 4,871,110 |
|
| 67,113,600 |
|
| 379,660 |
|
| 993,856 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (24,099,642 | ) |
| (182,685,874 | ) |
| (3,053,042 | ) |
| (4,021,634 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital share transactions |
|
| (19,228,532 | ) |
| (115,572,274 | ) |
| (2,673,382 | ) |
| (3,027,778 | ) |
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| (1,177,217 | ) |
| (73,567,983 | ) |
| (989,557 | ) |
| (1,517,819 | ) |
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 106,976,947 |
|
| 180,544,930 |
|
| 13,024,388 |
|
| 14,542,207 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 105,799,730 |
| $ | 106,976,947 |
| $ | 12,034,831 |
| $ | 13,024,388 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| 140,033 |
|
| 2,134,112 |
|
| 35,807 |
|
| 94,836 |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| — |
|
| — |
|
| — |
|
| — |
|
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I |
|
| (701,012 | ) |
| (5,446,229 | ) |
| (285,609 | ) |
| (387,380 | ) |
Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| (560,979 | ) |
| (3,312,117 | ) |
| (249,802 | ) |
| (292,544 | ) |
|
|
|
|
|
| ||||||||
* includes undistributed net investment income |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Developing Markets |
| ||||
|
|
| |||||
|
| Year ended |
| Year ended |
| ||
|
|
|
| ||||
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 37,371 |
| $ | 33,508 |
|
Net realized gain (loss) on investments |
|
| 1,134,284 |
|
| 1,505,004 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 4,423,542 |
|
| 2,399,673 |
|
Net realized gain (loss) on foreign currency transactions |
|
| (486 | ) |
| (239 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
|
| 5,594,711 |
|
| 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 |
|
| 4,178,847 |
|
| 8,600,888 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 34,063 |
|
| 50,380 |
|
Class S |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
Class I |
|
| (4,399,434 | ) |
| (10,055,526 | ) |
Class S |
|
| — |
|
| — |
|
|
|
|
| ||||
Increase (decrease) in net assets from capital share transactions |
|
| (186,524 | ) |
| (1,404,258 | ) |
|
|
|
| ||||
Total increase (decrease) in net assets |
|
| 5,373,187 |
|
| 2,482,382 |
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 13,057,276 |
|
| 10,574,894 |
|
|
|
|
| ||||
End of period * |
| $ | 18,430,463 |
| $ | 13,057,276 |
|
|
|
|
| ||||
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
Class I |
|
| 199,647 |
|
| 533,524 |
|
Class S |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Class I |
|
| 1,642 |
|
| 3,193 |
|
Class S |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
Class I |
|
| (213,628 | ) |
| (600,702 | ) |
Class S |
|
| — |
|
| — |
|
|
|
|
| ||||
Net increase (decrease) |
|
| (12,339 | ) |
| (63,985 | ) |
|
|
|
| ||||
* includes undistributed net investment income |
| $ | 35,294 |
| $ | 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 June 30, 2007. |
|
|
| Recent Accounting Pronouncements |
| On September 20, 2006, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (SFAS 157). SFAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of SFAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The impact of SFAS 157 on the Funds’ financial statements is being evaluated. |
|
|
| In June 2006, the FASB issued FASB Interpretation 48 (FIN 48), “Accounting for Uncertainty in Income Taxes.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” FIN 48 prescribes a two-step process to recognize and measure a tax position taken or expected to be taken in a tax return. The first step is to determine whether a tax position has met the more-likely-than-not recognition threshold and the second step is to measure a tax position that meets the threshold to determine the amount of benefit to recognize. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. Tax positions of the Funds are being evaluated to determine the impact, if any, to the Funds. The adoption of FIN 48 is not anticipated to have a material impact on the Funds. |
55
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
| Notes to Financial Statements (continued) |
|
|
|
|
|
|
|
|
|
|
| Illiquid Securities |
| Each Fund currently limits investments in illiquid securities to 15% of net assets. At June 30, 2007, the Sit Developing Markets Growth Fund held one security deemed illiquid by the investment adviser. The market value of this security as of June 30, 2007 was $33,277 (0.2% of net assets). Pursuant to the guidelines adopted by the Board of Directors, certain unregistered securities, if any are determined to be liquid and are not included within the limitation specified above. |
|
|
| Foreign Currency Translations and Forward Foreign Currency Contracts |
| The market value of securities and other assets and liabilities denominated in foreign currencies for Developing Markets Growth Fund and International Growth Fund are translated daily into U.S. dollars at the closing rate of exchange (approximately 12:30 p.m. E.S.T). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses. |
|
|
| The Developing Markets Growth and International Growth Funds may enter into forward foreign currency exchange contracts for operational purposes and to protect against adverse exchange rate fluctuation. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract. |
|
|
| 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 their 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. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid during the fiscal years ended June 30, 2007 and June 30, 2006 were as follows: |
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
Year Ended June 30, 2007:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
| Long Term |
| Total |
| |||||||||
Balanced |
|
| $ | 256,000 |
|
|
|
| — |
|
|
| $ | 256,000 |
|
|
Dividend Growth (Class I) |
|
|
| 561,812 |
|
|
|
| 356,486 |
|
|
|
| 918,298 |
|
|
Dividend Growth (Class S) |
|
|
| 28,632 |
|
|
|
| 33,155 |
|
|
|
| 61,787 |
|
|
Large Cap Growth |
|
|
| 730,000 |
|
|
|
| — |
|
|
|
| 730,000 |
|
|
Mid Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
International Growth |
|
|
| 326,000 |
|
|
|
| — |
|
|
|
| 326,000 |
|
|
Small Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
Science & Technology Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
Developing Markets Growth |
|
|
| 35,000 |
|
|
|
| — |
|
|
|
| 35,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2006: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
| Long Term |
| Total |
| |||||||||
Balanced |
|
| $ | 212,000 |
|
|
|
| — |
|
|
| $ | 212,000 |
|
|
Dividend Growth |
|
|
| 371,390 |
|
|
|
| 214,808 |
|
|
|
| 586,198 |
|
|
Large Cap Growth |
|
|
| 142,009 |
|
|
|
| — |
|
|
|
| 142,009 |
|
|
Mid Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
International Growth |
|
|
| 155,624 |
|
|
|
| — |
|
|
|
| 155,624 |
|
|
Small Cap Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
Science & Technology Growth |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
Developing Markets Growth |
|
|
| 51,306 |
|
|
|
| — |
|
|
|
| 51,306 |
|
|
As of June 30, 2007, the components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Accumulated |
| Unrealized |
| |||||||||
Balanced |
|
| $ | 58,696 |
|
|
|
| ($4,495,014 | ) |
|
| $ | 2,152,958 |
|
|
Dividend Growth |
|
|
| 459,656 |
|
|
|
| 1,045,408 |
|
|
|
| 6,309,715 |
|
|
Large Cap Growth |
|
|
| 246,601 |
|
|
|
| (14,946,186 | ) |
|
|
| 27,116,525 |
|
|
Mid Cap Growth |
|
|
| — |
|
|
|
| (2,634,195 | ) |
|
|
| 65,324,098 |
|
|
International Growth |
|
|
| 408,875 |
|
|
|
| (31,435,590 | ) |
|
|
| 14,760,131 |
|
|
Small Cap Growth |
|
|
| — |
|
|
|
| (37,073,059 | ) |
|
|
| 30,528,990 |
|
|
Science & Technology Growth |
|
|
| — |
|
|
|
| (19,605,239 | ) |
|
|
| 2,312,613 |
|
|
Developing Markets Growth |
|
|
| 35,294 |
|
|
|
| 241,892 |
|
|
|
| 9,747,035 |
|
|
57
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| Undistributed net investment income and accumulated net realized gains (losses) from the Statements of Assets and Liabilities have been increased (decreased) by current permanent book-to-tax differences resulting in reclassifications as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Accumulated |
| Additional |
| |||||||||
| Mid Cap Growth |
|
|
| 595,978 |
|
|
|
| — |
|
|
|
| (595,978 | ) |
|
| International Growth |
|
|
| (1,238 | ) |
|
|
| 1,238 |
|
|
|
| — |
|
|
| Small Cap Growth |
|
|
| 793,277 |
|
|
|
| — |
|
|
|
| (793,277 | ) |
|
| Science & Technology Growth |
|
|
| 102,385 |
|
|
|
| — |
|
|
|
| (102,385 | ) |
|
| Developing Markets Growth |
|
|
| (486 | ) |
|
|
| 486 |
|
|
|
| — |
|
|
|
|
| As of June 30, 2007, 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 |
|
| $ | 4,495,014 |
|
|
|
| 2010-2013 |
|
|
| Large Cap Growth |
|
|
| 14,946,186 |
|
|
|
| 2011-2012 |
|
|
| Mid Cap Growth |
|
|
| 2,634,195 |
|
|
|
| 2012 |
|
|
| International Growth |
|
|
| 31,435,590 |
|
|
|
| 2010-2013 |
|
|
| Small Cap Growth |
|
|
| 37,073,059 |
|
|
|
| 2011-2012 |
|
|
| Science & Technology Growth |
|
|
| 19,605,239 |
|
|
|
| 2010-2013 |
|
|
|
|
| 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. |
|
|
| 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. |
58
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
(2) | Investment Security Transactions |
| Cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended June 30, 2007, were as follow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| |||||||
| Balanced Fund |
|
|
| 4,777,764 |
|
|
|
| 5,363,323 |
|
|
| Dividend Growth |
|
|
| 20,876,935 |
|
|
|
| 10,359,113 |
|
|
| Large Cap Growth Fund |
|
|
| 36,400,564 |
|
|
|
| 28,400,129 |
|
|
| Mid Cap Growth Fund |
|
|
| 73,481,423 |
|
|
|
| 84,139,615 |
|
|
| International Growth Fund |
|
|
| 6,225,694 |
|
|
|
| 7,642,914 |
|
|
| Small Cap Growth Fund |
|
|
| 37,474,660 |
|
|
|
| 52,221,367 |
|
|
| Science and Technology Growth Fund |
|
|
| 4,930,224 |
|
|
|
| 7,394,808 |
|
|
| Developing Markets Growth Fund |
|
|
| 2,408,284 |
|
|
|
| 3,167,298 |
|
|
|
|
(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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Management Fee |
| Net of Adviser’s |
| ||||||
| 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. |
|
|
| 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 |
59
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| to all fees otherwise due to them under their investment management agreement for the assets invested in the Sit Money Market Fund. The Funds owned the following shares as of June 30, 2007: |
|
|
|
|
|
|
| Fund |
| Shares |
| |
| Balanced Fund |
|
| 277,000 |
|
| Dividend Growth Fund |
|
| 763,000 |
|
| Large Cap Growth Fund |
|
| 5,224,000 |
|
| Mid Cap Growth Fund |
|
| 3,614,000 |
|
| International Growth Fund |
|
| 328,000 |
|
| Small Cap Growth Fund |
|
| 1,530,000 |
|
| Science and Technology Growth Fund |
|
| 81,000 |
|
| Developing Markets Growth Fund |
|
| 734,000 |
|
|
|
| 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 $350,608 were paid or payable to SKI for the year ended June 30, 2007. |
|
|
| 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 June 30, 2007: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| % Shares |
| ||||
| Balanced Fund |
|
| 216,982 |
|
|
| 29.3 |
|
|
| Dividend Growth Fund |
|
| 757,169 |
|
|
| 26.9 |
|
|
| Large Cap Growth Fund |
|
| 470,141 |
|
|
| 16.4 |
|
|
| Mid Cap Growth Fund |
|
| 3,011,223 |
|
|
| 23.0 |
|
|
| International Growth Fund |
|
| 765,787 |
|
|
| 36.2 |
|
|
| Small Cap Growth Fund |
|
| 866,994 |
|
|
| 32.9 |
|
|
| Science and Technology Growth Fund |
|
| 554,142 |
|
|
| 52.8 |
|
|
| Developing Markets Growth Fund |
|
| 183,074 |
|
|
| 24.8 |
|
|
|
|
(4) | Subsequent Event |
| Subject to shareholder approval, the Board of Directors has approved a plan of reorganization and liquidation to transfer all of the assets and liabilities of the Sit Science and Technology Growth Fund to the Sit Mid Cap Growth Fund. This reorganization is expected to occur on or before October 31, 2007. |
60
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
61
|
|
|
|
|
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| .34 |
|
| .28 |
|
| .26 |
|
| .21 |
|
| .29 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.78 |
|
| .59 |
|
| .73 |
|
| 1.34 |
|
| .22 |
|
Total from operations |
|
| 2.12 |
|
| .87 |
|
| .99 |
|
| 1.55 |
|
| .51 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
| (.33 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 16.93 |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
|
Total investment return (1) |
|
| 14.24 | % |
| 6.03 | % |
| 7.28 | % |
| 12.53 | % |
| 4.43 | % |
Net assets at end of period (000’s omitted) |
| $ | 12,529 |
| $ | 11,617 |
| $ | 12,251 |
| $ | 12,441 |
| $ | 16,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income to average daily net assets |
|
| 2.13 | % |
| 1.84 | % |
| 1.84 | % |
| 1.58 | % |
| 2.54 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 41.63 | % |
| 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) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
62
|
|
|
|
|
| Sit Dividend Growth Fund Class I |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
| ||||||||
|
| Years Ended June 30, |
|
| |||||||||
|
|
|
| ||||||||||
|
| 2007 |
| 2006 |
| 2005 |
|
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .24 |
|
| .25 |
|
| .21 |
|
| .08 |
|
Net realized and unrealized gains (losses) on investments |
|
| 2.35 |
|
| 1.20 |
|
| 1.01 |
|
| .10 |
|
Total from operations |
|
| 2.59 |
|
| 1.45 |
|
| 1.22 |
|
| .18 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.23 | ) |
| (.23 | ) |
| (.18 | ) |
| (.04 | ) |
From net realized gains |
|
| (.20 | ) |
| (.14 | ) |
| — |
|
| — |
|
Total distributions |
|
| (.43 | ) |
| (.37 | ) |
| (.18 | ) |
| (.04 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 14.42 |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
|
Total investment return (1) |
|
| 21.48 | % |
| 13.20 | % |
| 12.12 | % |
| 1.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 37,674 |
| $ | 24,137 |
| $ | 14,196 |
| $ | 6,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (5) |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 1.81 | % |
| 2.09 | % |
| 1.94 | % |
| 1.79 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 34.02 | % (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. |
|
|
(5) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
See accompanying notes to financial statements on page 54.
63
|
|
|
|
|
| Sit Dividend Growth Fund Class S |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year |
| Three months |
| ||
Net Asset Value: |
|
|
|
|
|
|
|
Beginning of period |
| $ | 12.26 |
| $ | 12.28 |
|
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) (2) |
|
| .21 |
|
| .05 |
|
Net realized and unrealized gains (losses) on investments |
|
| 2.33 |
|
| (.02 | ) |
Total from operations |
|
| 2.54 |
|
| .03 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
From net investment income |
|
| (.21 | ) |
| (.05 | ) |
From net realized gains |
|
| (.20 | ) |
| — |
|
Total distributions |
|
| (.41 | ) |
| (.05 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
End of period |
| $ | 14.39 |
| $ | 12.26 |
|
Total investment return (1) |
|
| 21.02 | % |
| 0.27 | % |
Net assets at end of period (000’s omitted) |
| $ | 2,823 |
| $ | 48 |
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
Expenses to average daily net assets (5) |
|
| 1.25 | % |
| 1.25 | % (3) |
Net investment income (loss) to average daily net assets |
|
| 1.56 | % |
| 1.84 | % (3) |
Portfolio turnover rate (excluding short-term securities) |
|
| 34.02 | % (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. |
|
|
(5) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
64
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| .24 |
|
| .17 |
|
| .16 |
|
| .01 |
|
| .02 |
|
Net realized and unrealized gains (losses) on investments |
|
| 6.43 |
|
| 3.23 |
|
| 2.27 |
|
| 5.05 |
|
| .50 |
|
Total from operations |
|
| 6.67 |
|
| 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 |
| $ | 43.99 |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
|
Total investment return (1) |
|
| 17.79 | % |
| 9.91 | % |
| 7.62 | % |
| 18.81 | % |
| 1.97 | % |
Net assets at end of period (000’s omitted) |
| $ | 125,741 |
| $ | 101,873 |
| $ | 69,660 |
| $ | 63,774 |
| $ | 59,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.59 | % |
| 0.46 | % |
| 0.49 | % |
| 0.02 | % |
| 0.08 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 27.80 | % |
| 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. |
See accompanying notes to financial statements on page 54.
65
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| (.04 | ) |
| — |
|
| (.07 | ) |
| (.07 | ) |
| (.05 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 2.74 |
|
| 1.73 |
|
| 1.12 |
|
| 2.24 |
|
| .20 |
|
Total from operations |
|
| 2.70 |
|
| 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 |
| $ | 15.71 |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
|
Total investment return (1) |
|
| 20.75 | % |
| 15.34 | % |
| 10.26 | % |
| 26.92 | % |
| 1.90 | % |
Net assets at end of period (000’s omitted) |
| $ | 205,256 |
| $ | 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 |
|
| (0.31 | %) (2) |
| (0.03 | %) (2) |
| (0.66 | %) (2) |
| (0.71 | %) (2) |
| (0.73 | %) (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 40.08 | % |
| 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) | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the years ended June 30, 2007, 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 (0.41%), (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. |
66
|
|
|
|
|
| Sit International Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| .20 |
|
| .14 |
|
| .07 |
|
| .01 |
|
| .07 |
|
Net realized and unrealized gains (losses) on investments |
|
| 3.17 |
|
| 3.10 |
|
| 1.03 |
|
| 1.92 |
|
| (1.47 | ) |
Total from operations |
|
| 3.37 |
|
| 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 |
| $ | 18.70 |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
|
Total investment return (1) |
|
| 21.87 | % |
| 26.37 | % |
| 9.80 | % |
| 20.63 | % |
| (12.97 | %) |
Net assets at end of period (000’s omitted) |
| $ | 39,511 |
| $ | 34,700 |
| $ | 29,152 |
| $ | 34,281 |
| $ | 48,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (4) |
|
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
| 1.50 | % (2) |
Net investment income (loss) to average daily net assets |
|
| 1.19 | % (2) |
| 0.95 | % (2) |
| 0.56 | % (2) |
| 0.14 | % (2) |
| 0.81 | % (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 17.25 | % |
| 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) | Total Fund expenses are limited to 1.85% of average daily net assets. However, during the years ended June 30, 2007, 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 0.84%, 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. |
|
|
(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
See accompanying notes to financial statements on page 54.
67
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| (.27 | ) |
| (.23 | ) |
| (.27 | ) |
| (.27 | ) |
| (.18 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 6.95 |
|
| 5.95 |
|
| 2.72 |
|
| 3.92 |
|
| .76 |
|
Total from operations |
|
| 6.68 |
|
| 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 |
| $ | 40.14 |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
|
Total investment return (1) |
|
| 19.96 | % |
| 20.62 | % |
| 9.69 | % |
| 16.87 | % |
| 2.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 105,800 |
| $ | 106,977 |
| $ | 180,545 |
| $ | 199,810 |
| $ | 182,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
Net investment income (loss) to average daily net assets |
|
| (0.79 | %) |
| (0.67 | %) |
| (1.08 | %) |
| (1.10 | %) |
| (1.00 | %) |
Portfolio turnover rate (excluding short-term securities) |
|
| 38.79 | % |
| 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. |
68
|
|
|
|
|
| Sit Science and Technology Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| (.09 | ) |
| (.08 | ) |
| (.09 | ) |
| (.11 | ) |
| (.07 | ) |
Net realized and unrealized gains (losses) on investments |
|
| 1.54 |
|
| .96 |
|
| (.79 | ) |
| 2.08 |
|
| .60 |
|
Total from operations |
|
| 1.45 |
|
| .88 |
|
| (.88 | ) |
| 1.97 |
|
| .53 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 11.47 |
| $ | 10.02 |
| $ | 9.14 |
| $ | 10.02 |
| $ | 8.05 |
|
Total investment return (1) |
|
| 14.47 | % |
| 9.63 | % |
| (8.78 | %) |
| 24.47 | % |
| 7.05 | % |
Net assets at end of period (000’s omitted) |
| $ | 12,035 |
| $ | 13,024 |
| $ | 14,542 |
| $ | 19,054 |
| $ | 15,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| (0.82 | %) (2) |
| (0.73 | %) (2) |
| (0.99 | %) (2) |
| (1.20 | %) (2) |
| (1.05 | %) (2) |
Portfolio turnover rate (excluding short-term securities) |
|
| 41.40 | % |
| 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) | Total Fund expenses are limited to 1.50% of average daily net assets. However, during the years ended June 30, 2007, 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 (0.97%), (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.
69
|
|
|
|
|
| Sit Developing Markets Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2007 |
| 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) |
|
| .05 |
|
| .04 |
|
| .06 |
|
| .04 |
|
| .02 |
|
Net realized and unrealized gains (losses) on investments |
|
| 7.56 |
|
| 4.43 |
|
| 3.04 |
|
| 1.78 |
|
| — |
|
Total from operations |
|
| 7.61 |
|
| 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 |
| $ | 24.94 |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
|
Total investment return (1) |
|
| 43.82 | % |
| 34.47 | % |
| 31.32 | % |
| 22.48 | % |
| 0.25 | % |
Net assets at end of period (000’s omitted) |
| $ | 18,430 |
| $ | 13,057 |
| $ | 10,575 |
| $ | 8,030 |
| $ | 8,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.25 | % |
| 0.24 | % |
| 0.55 | % |
| 0.37 | % |
| 0.31 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 16.25 | % |
| 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) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
|
|
See accompanying notes to financial statements on page 54. |
70
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
The Board of Directors and Shareholders
Sit Large Cap Growth Fund, Inc.
Sit Mid Cap Growth Fund, Inc.
Sit Mutual Funds, Inc.:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Sit Balanced Fund (a series of Sit Mutual Funds, Inc.), Sit Dividend Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Large Cap Growth Fund, Inc., Sit Mid Cap Growth Fund, Inc., Sit International Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Small Cap Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Science and Technology Growth Fund (a series of Sit Mutual Funds, Inc.), and Sit Developing Markets Growth Fund (a series of Sit Mutual Funds, Inc.) as of June 30, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and the financial highlights are the responsibility of fund management. Our responsibility is to express an opinion on these financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2007, by correspondence with the custodian and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit Balanced Fund, Sit Dividend Growth Fund, Sit Large Cap Growth Fund, Sit Mid Cap Growth Fund, Sit International Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and Sit Developing Markets Growth Fund as of June 30, 2007 and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
August 20, 2007
71
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for then entire period January 1, 2007 to June 30, 2007.
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 | $1,061.50 | $5.08 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
|
|
|
|
Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,092.90 | $5.16 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
72
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
Dividend Growth Fund Class S | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,090.70 | $6.44 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.75 | $6.22 |
|
|
|
|
Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,088.60 | $5.15 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $4.98 |
|
|
|
|
Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,123.70 | $6.02 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.25 | $5.73 |
|
|
|
|
International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1.108.50 | $7.80 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.46 |
|
|
|
|
Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,173.30 | $8.04 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.46 |
73
|
|
|
|
|
|
|
|
|
|
| Expense Example (Continued) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Science and Technology Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,067.00 | $6.88 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.25 | $6.72 |
|
|
|
|
Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $1,186.50 | $10.78 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.00 | $9.94 |
74
|
|
|
|
|
|
|
|
| |
|
| |||
|
|
| ||
| |
| ||
|
|
|
|
|
The Sit Mutual Funds are a family of 14 no-load mutual funds. The eight Stock Funds described in this Stock Funds Annual Report are the Sit Mid Cap Growth Fund, Sit Large Cap Growth Fund, Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and the Sit Dividend Growth Fund (the “Funds” or individually, a “Fund”). The six bond funds within the Sit Mutual Fund family are described in a Bond Funds Annual Report. The Sit Mid Cap Growth Fund and Sit Large Cap Growth Fund, and the corporate issuer of the Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, Sit Science and Technology Growth Fund, and Sit Dividend Growth Fund have a Board of Directors and officers. Pursuant to Minnesota law, the Boards of Directors are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day-to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below. The business address, unless otherwise noted below, is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The Stock Funds’ SAI has additional information about the fund’s directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
|
|
|
|
|
|
Name, Address | Position(s) | Term of | Principal Occupation(s) During | Number of Funds | Other |
INTERESTED DIRECTORS: | |||||
Eugene C. Sit(2) | Director and | Director since | Chairman, CEO and CIO of Sit Investment Associates, Inc. (the “Adviser”); and Sit/Kim International Investment Associates, Inc. (“Sit/Kim”); Director of SIA Securities Corp. (the “Distributor”); and Chairman and CEO of Sit Investment Fixed Income Advisors, Inc. (“SF”) | 14 | Corning Incorporated; Smurfit Stone Container Corporation. |
William E. Frenzel(2) | Director | Director since 1991 or the Fund’s inception if later. | Guest Scholar at the Brookings Institution and member of several government policy committees, foundations and organizations Director of the Adviser; Director of Sit/Kim and SF. | 14 | None |
INDEPENDENT DIRECTORS: | |||||
Sidney L. Jones | Director | Director from 1988 to 1989 and from 1993 or the Fund’s inception if later. | Lecturer, Washington Campus Corsortium of 17 Universities; Senior Advisor to Lawrence and Company, Toronto, Canada. | 14 | None |
75
|
|
|
|
|
| Information about Directors and Officers (Continued) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name, Address | Position(s) | Term of | Principal Occupation(s) During | Number of Funds | Other |
Bruce C. Lueck | Director | Director since 2004 or the Fund’s inception if later. | Consultant for Zephyr Management, L.P. (investment management) and committee member of several investment funds and foundations. President & Chief Investment Officer, Okabena Investment Services, Inc. from 1985 to 2003; Board Member, Okabena Company from 1985 to 2003. | 14 | None |
John P. Fagan | Director | Director since 2006. | Honorary member on Board of St. Joseph’s College in Rensselaer, Indiana | 14 | None |
Donald Phillips | Director | Director of the International Fund since 1993 and since 1990 or the Fund’s inception if later for all other Funds. | Chairman and CEO of WP Global Partners Inc., 7/05 to present; CEO and CIO of WestLB Asset Management (USA) LLC, 4/00 to 4/05. | 14 | None |
Melvin C. Bahle | Director | Director since 2005; Director Emeritus 1995-2005; Director since inception until 1995. | Director and/or officer of several foundations and charitable organizations. | 14 | None |
OFFICERS: |
|
|
|
|
|
Peter L. Mitchelson | Vice | Re-Elected by the Boards annually; Officer since inception. | Director and Vice Chairman of the Adviser; Director and Executive Vice President of Sit/Kim; Director of the Distributor; and Vice Chairman of SF. Director of the it Funds through 4/30/02. | N/A | N/A |
Roger J. Sit(3) | Executive | Re-Elected by the Boards annually; Officer since 1998 | Director and President of the Adviser; Director, President, COO, and Deputy CIO of Sit/Kim. | N/A | N/A |
Kent L. Johnson | Vice President -Investments | Re-Elected by the Boards annually; Officer since 2003. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Ronald D. Sit(3) | Vice | Re-Elected by the Boards annually; Officer since 1985. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
76
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name, Address, | Position(s) | Term of Officer (1) | Principal Occupation(s) During | Number of Funds | Other |
Robert W. Sit(3) | Vice | Re-Elected by the Boards annually; Officer since 1997. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Bryce A. Doty | Vice | Re-Elected by the Boards annually; Officer since 1996. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Paul E. Rasmussen | Vice | Re-Elected by the Boards annually; Officer since 1994. | Vice President, Secretary, Controller and Chief Compliance Officer of the Adviser; Vice Presient, Secretary, and Chief Compliance Officer of Sit/Kim and SF; President and Treasurer of the Distributor. | N/A | N/A |
Michael J. Radmer | Secretary | Re-Elected by the Boards annually; Officer since 1984. | Partner of the Funds’ general counsel, Dorsey & Whitney, LLP. | N/A | N/A |
Carla J. Rose | Vice | Re-Elected by the Boards annually; Officer since 2000. | Vice President, Administration & Deputy Controller of the Adviser; Vice President, Administration and Controller of Sit/Kim; Controller and Treasurer of SF; Vice President and Assistant Secretary of the Distributor. | N/A | N/A |
Kelly K. Boston | Assistant | Re-Elected by the Boards annually; Officer since 2000. | Staff Attorney of the Adviser. Secretary of the Distributor. | N/A | N/A |
|
|
(1) | Each Director serves until his resignation, removal or the next meeting of the shareholders at which election of directors is an agenda item and until his successor is duly elected and shall qualify. |
|
|
(2) | Directors who are deemed to be an “interested person” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Sit is considered an “interested person” because he is an officer of Sit Investment Associates, Inc., the Fund’s investment adviser. Mr. Frenzel is deemed to be an interested person because he is an advisory director and shareholder of the Fund’s investment adviser. |
|
|
(3) | Mr. Roger Sit, Mr. Ronald Sit, and Mr. Robert Sit are sons of Eugene C. Sit. |
|
|
(4) | Includes only directorships of companies required to report under the Securities Exchange Act of 1934 (i.e. public companies) or other investment companies registered under the 1940 Act. |
77
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
We are required by Federal tax regulations to provide shareholders with certain information regarding dividend distributions on an annual fiscal year basis. The figures are for informational purposes only and should not be used for reporting to federal or state revenue agencies. All necessary tax information will be mailed in January each year
|
|
|
|
|
|
|
|
|
|
|
|
Fund and Payable Date |
| Ordinary |
| Long-Term |
| ||||||
|
|
|
|
|
|
| |||||
| |||||||||||
Balanced Fund |
|
|
|
|
|
|
| ||||
October 6, 2006 |
|
| $ | 0.09867 |
|
|
| $ | 0.00000 |
|
|
December 15, 2006 |
|
|
| 0.08444 |
|
|
|
| 0.00000 |
|
|
April 10, 2007 |
|
|
| 0.07348 |
|
|
|
| 0.00000 |
|
|
July 10, 2007 |
|
|
| 0.08366 |
|
|
|
| 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
|
|
| $ | 0.34025 | (b) |
|
| $ | 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
| |||||||||||
Dividend Growth Fund (Class I) |
|
|
|
|
|
|
|
|
|
|
|
October 6, 2006 |
|
| $ | 0.05575 |
|
|
| $ | 0.00000 |
|
|
December 15, 2006 |
|
|
| 0.08954 |
|
|
|
| 0.16679 |
|
|
April 10, 2007 |
|
|
| 0.05769 |
|
|
|
| 0.00000 |
|
|
July 10, 2007 |
|
|
| 0.05881 |
|
|
|
| 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
|
|
| $ | 0.26180 | (c) |
|
| $ | 0.16679 |
|
|
|
|
|
|
|
|
|
| ||||
| |||||||||||
Dividend Growth Fund (Class S) |
|
|
|
|
|
|
|
|
|
|
|
October 6, 2006 |
|
| $ | 0.05115 |
|
|
| $ | 0.00000 |
|
|
December 15, 2006 |
|
|
| 0.08582 |
|
|
|
| 0.16679 |
|
|
April 10, 2007 |
|
|
| 0.04918 |
|
|
|
| 0.00000 |
|
|
July 10, 2007 |
|
|
| 0.04987 |
|
|
|
| 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
|
|
| $ | 0.23602 | (c) |
|
| $ | 0.16679 |
|
|
|
|
|
|
|
|
|
| ||||
| |||||||||||
Large Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
December 15, 2006 |
|
| $ | 0.27711 | (d) |
|
| $ | 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
Developing Markets Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
December 15, 2006 |
|
| $ | 0.04679 | (e) |
|
| $ | 0.00000 |
|
|
|
|
|
|
|
|
|
| ||||
International Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
December 15, 2006 |
|
| $ | 0.14851 | (e) |
|
| $ | 0.00000 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
|
|
(b) | Taxable as ordinary income, 37.6% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 48.3% qualifying for dividends-received deduction by corporations. |
| |
(c) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 86.5% qualifying for dividends-received deduction by corporations. |
| |
(d) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. Taxable as ordinary income, 100.0% qualifying for dividends-received deduction by corporations. |
| |
(e) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. |
|
|
(f) | Taxable as long-term gain. |
78
|
|
|
|
|
|
|
|
| |
|
| |||
|
|
| ||
| |
| ||
|
|
|
|
|
PROXY VOTING
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds’ annual and semi-annual reports include complete lists of each portfolio’s holdings. For the first and third quarters of each fiscal year, the Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) on Forms N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580.
79
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.
Sit Mutual Funds are comprised of thirteen no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
|
|
• | Free telephone exchange |
• | Dollar-cost averaging through an automatic investment plan |
• | Electronic transfer for purchases and redemptions |
• | Free checkwriting privileges on Bond Funds |
• | Retirement accounts including IRAs and 401(k) plans. |
80
A N N U A L R E P O R T S T O C K F U N D S
One Year Ended June 30, 2007
|
|
INVESTMENT ADVISER | INDEPENDENT REGISTERED PUBLIC |
www.sitfunds.com
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
|
| Audit |
| Audit |
| Tax |
| Other |
|
Fiscal year ended June 30, 2007 |
| 21,900 |
| 0 |
| 3,975 |
| 0 |
|
Fiscal year ended June 30, 2006 |
| 21,600 |
| 0 |
| 3,860 |
| 0 |
|
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $32,000 and $121,000, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mid Cap Growth Fund, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 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.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 2007
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date August 30, 2007
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
|
| Audit |
| Audit |
| Tax |
| Other |
|
Fiscal year ended June 30, 2007 |
| 18,900 |
| 0 |
| 3,975 |
| 0 |
|
Fiscal year ended June 30, 2006 |
| 18,500 |
| 0 |
| 3,860 |
| 0 |
|
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $32,000.00 and $121,000, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Large Cap Growth Fund, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 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.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 2007
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date August 30, 2007
Item 2: Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-334-5888 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.
Item 3: Audit Committee Financial Expert.
The registrant’s Board of Directors has determined that Mr. Melvin C. Bahle, Mr. John P. Fagan, Mr. Sidney L. Jones, Mr. Bruce C. Lueck and Mr. Donald W. Phillips are audit committee financial experts serving on its audit committee. Mr. Bahle, Mr. Fagan, Mr. Jones, Mr. Lueck and Mr. Phillips are independent for purposes of this item.
Item 4: Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
|
| 2007 |
| 2006 |
| ||||||||||||
|
| Audit |
| Audit |
| Tax |
| Other |
| Audit |
| Audit |
| Tax |
| Other |
|
Fiscal year ended June 30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sit Mutual Funds, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sit International Growth Fund (series A) |
| 21,000 |
| 0 |
| 3,975 |
| 0 |
| 20,400 |
| 0 |
| 3,860 |
| 0 |
|
Sit Balanced Fund (series B) |
| 14,400 |
| 0 |
| 3,975 |
| 0 |
| 13,800 |
| 0 |
| 3,860 |
| 0 |
|
Sit Developing Markets Growth Fund (series C) |
| 13,700 |
| 0 |
| 3,975 |
| 0 |
| 13,300 |
| 0 |
| 3,860 |
| 0 |
|
Sit Small Cap Growth Fund (series D) |
| 16,900 |
| 0 |
| 3,975 |
| 0 |
| 16,400 |
| 0 |
| 3,860 |
| 0 |
|
Sit Science and Technology Growth Fund (series E) |
| 14,300 |
| 0 |
| 3,975 |
| 0 |
| 13,800 |
| 0 |
| 3,860 |
| 0 |
|
Sit Dividend Growth Fund (series G) |
| 13,800 |
| 0 |
| 3,975 |
| 0 |
| 13,200 |
| 0 |
| 3,860 |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mutual Funds, Inc. |
| 94,100 |
| 0 |
| 23,850 |
| 0 |
| 90,900 |
| 0 |
| 23,160 |
| 0 |
|
Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.
(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.
The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.
(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $32,000 and $121,000, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures.
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mutual Funds, Inc.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 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.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date August 30, 2007
By (Signature and Title) | /s/ Eugene C. Sit |
| Eugene C. Sit |
| Chairman |
Date August 30, 2007