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, 2008 |
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Date of reporting period: | June 30, 2008 |
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03343
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, 2008 |
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Date of reporting period: | June 30, 2008 |
Item 1: Reports to Stockholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
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, 2008 |
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Date of reporting period: | June 30, 2008 |
Item 1: Reports to Stockholders.
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Sit Mutual Funds
One Year Ended June 30, 2008
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
Developing Markets Growth Fund
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Sit Mutual Funds |
STOCK FUNDS ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments |
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Sit Mutual Funds | |
One Year Ended June 30, 2008 | |
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Dear Fellow Shareholders:
Equity prices declined over the past twelve months, reflecting a weak housing market, credit losses in the finance sector and a sharp rise in oil prices. While it may take time for these issues to be resolved, we believe that market volatility has created opportunities for long-term investors.
2
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With best wishes,
Roger J. Sit
President, Chief Executive Officer and
Global Chief Investment Officer
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| Sit Mutual Funds |
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| One Year Ended June 30, 2008 |
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SIT EQUITY FUNDS |
| 3-Month |
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Balanced SIBAX |
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| -0.27 | % |
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S&P 500 Index |
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| -2.73 |
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Lehman Aggregate Bond Index |
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| -1.02 |
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Dividend Growth Class I SDVGX |
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| -0.32 |
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S&P 500 Index |
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| -2.73 |
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Dividend Growth Class S SDVSX |
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| -0.43 |
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S&P 500 Index |
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| -2.73 |
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Large Cap Growth SNIGX |
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| 2.00 |
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Russell 1000® Growth Index(1) |
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| 1.25 |
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Mid Cap Growth(2) NBNGX |
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| 5.33 |
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Russell Midcap® Growth Index(3) |
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| 4.65 |
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International Growth(4) SNGRX |
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| 2.01 |
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MSCI EAFE Growth Index(5) |
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| 0.02 |
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Small Cap Growth(2) SSMGX |
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| 7.87 |
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Russell 2000® Growth Index(6) |
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| 4.47 |
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Developing Markets Growth(4) SDMGX |
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| 2.53 |
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MSCI Emerging Markets Index(6) |
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| -1.58 |
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Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. | |
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(1) | 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 political instability. |
(5) | Figures assume an inception date of 10/31/91. |
(6) | Figures assume an inception date of 6/30/94. |
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| AVERAGE ANNUAL RETURNS FOR PERIODS ENDED JUNE 30, 2008 |
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6-Month |
| 1-Year | 3-Year | 5-Year | 10-Year | Since | Inception | |||||||||||||
-5.61 | % |
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| -1.72 | % |
| 5.98 | % |
| 7.52 | % |
| 3.03 | % |
| 7.16 | % |
| 12/31/93 |
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-11.92 |
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| -13.12 |
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| 4.41 |
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| 7.58 |
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| 2.88 |
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| 9.18 |
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1.13 |
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| 7.12 |
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| 4.09 |
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| 3.85 |
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| 5.68 |
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| 6.10 |
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-6.15 |
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| -3.06 |
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| 10.05 |
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| 9.76 |
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| 12/31/03 |
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-11.92 |
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| -13.12 |
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| 4.41 |
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| 5.11 |
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-6.26 |
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| -3.27 |
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| 7.38 |
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| 3/31/06 |
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-11.92 |
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| -13.12 |
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| 1.43 |
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-5.61 |
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| -1.03 |
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| 8.62 |
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| 10.38 |
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| 1.20 |
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| 10.70 |
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| 9/2/82 |
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-9.06 |
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| -5.95 |
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| 5.91 |
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| 7.32 |
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| 0.96 |
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| 11.28 |
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-7.95 |
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| -2.63 |
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| 10.69 |
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| 13.67 |
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| 4.24 |
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| 13.20 |
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| 9/2/82 |
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-6.81 |
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| -6.42 |
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| 8.19 |
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| 12.32 |
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| 5.64 |
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-8.15 |
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| -3.82 |
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| 13.99 |
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| 14.43 |
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| 1.12 |
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| 5.69 |
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| 11/1/91 |
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-8.14 |
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| -4.44 |
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| 14.68 |
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| 16.26 |
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| 4.11 |
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| 5.21 |
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-9.13 |
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| -6.73 |
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| 10.51 |
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| 11.59 |
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| 8.52 |
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| 12.28 |
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| 7/1/94 |
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-8.93 |
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| -10.83 |
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| 6.08 |
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| 10.37 |
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| 2.80 |
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| 6.71 |
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-11.24 |
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| 5.26 |
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| 26.74 |
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| 26.77 |
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| 11.38 |
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| 7.29 |
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| 7/1/94 |
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-12.72 |
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| 2.59 |
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| 24.37 |
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| 26.72 |
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| 12.64 |
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| 6.02 |
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5
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| Sit Mutual Funds |
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Balanced |
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| 21.30 | % |
| 20.15 | % |
| -4.80 | % |
| -12.99 | % |
S&P 500 Index |
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| 28.58 |
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| 21.04 |
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| -9.11 |
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| -11.88 |
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Lehman Aggregate Bond Index |
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| 8.69 |
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| -0.82 |
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| 11.63 |
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| 8.44 |
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Dividend Growth Class I(1) |
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S&P 500 Index |
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| — |
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| — |
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Dividend Growth Class S(1) |
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S&P 500 Index |
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Large Cap Growth(2) |
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| 30.56 |
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| 33.41 |
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| -13.84 |
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| -27.70 |
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Russell 1000® Growth Index |
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| 38.72 |
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| 33.16 |
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| -22.43 |
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| -20.42 |
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Mid Cap Growth(3) (5) |
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| 6.84 |
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| 70.65 |
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| -4.35 |
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| -33.39 |
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Russell Midcap® Growth Index |
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| 17.87 |
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| 51.29 |
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| -11.75 |
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| -20.15 |
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International Growth(4) |
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| 18.95 |
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| 50.77 |
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| -26.66 |
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| -33.26 |
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MSCI EAFE Growth Index |
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| 22.21 |
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| 29.46 |
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| -24.51 |
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| -24.58 |
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Small Cap Growth(3) |
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| 1.97 |
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| 108.63 |
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| 6.25 |
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| -28.19 |
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Russell 2000® Growth Index |
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| 1.24 |
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| 43.10 |
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| -22.44 |
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| -9.24 |
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Developing Markets Growth(4) |
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| -24.93 |
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| 82.50 |
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| -30.18 |
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| -12.01 |
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MSCI Emerging Markets Index |
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| -27.52 |
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| 63.70 |
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| -31.80 |
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| -4.91 |
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Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual returns include reinvestment of all dividends and capital gains. For any returns less than one year, the returns are cumulative. | |
(1) | The Dividend Growth Fund offers its shares in two classes: Class I shares 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. |
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| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
| YTD 2008 | |||||||
Balanced |
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| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| 7.88 | % |
| 10.52 | % | -5.61 | % |
S&P 500 Index |
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| -22.10 |
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| 28.68 |
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| 10.88 |
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| 4.91 |
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| 15.80 |
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| 5.50 |
| -11.92 |
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Lehman Aggregate Bond Index |
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| 10.25 |
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| 4.10 |
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| 4.34 |
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| 2.43 |
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| 4.33 |
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| 6.97 |
| 1.13 |
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Dividend Growth Class I(1) |
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| — |
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| 10.91 |
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| 9.41 |
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| 18.29 |
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| 12.89 |
| -6.15 |
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S&P 500 Index |
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| — |
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| — |
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| 10.88 |
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| 4.91 |
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| 15.80 |
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| 5.50 |
| -11.92 |
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Dividend Growth Class S(1) |
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| — |
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| 11.25 |
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| 12.56 |
| -6.26 |
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S&P 500 Index |
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| — |
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| — |
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| — |
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| — |
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| 11.11 |
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| 5.50 |
| -11.92 |
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Large Cap Growth(2) |
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| -30.58 |
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| 26.34 |
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| 12.79 |
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| 9.59 |
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| 9.54 |
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| 14.14 |
| -5.61 |
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Russell 1000® Growth Index |
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| -27.89 |
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| 29.76 |
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| 6.30 |
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| 5.27 |
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| 9.08 |
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| 11.81 |
| -9.06 |
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Mid Cap Growth(3) (5) |
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| -34.64 |
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| 38.51 |
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| 17.02 |
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| 15.27 |
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| 9.56 |
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| 18.87 |
| -7.95 |
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Russell Midcap® Growth Index |
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| -27.41 |
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| 42.71 |
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| 15.48 |
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| 12.10 |
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| 10.65 |
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| 11.44 |
| -6.81 |
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International Growth(4) |
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| -29.84 |
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| 28.70 |
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| 12.97 |
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| 14.67 |
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| 18.19 |
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| 16.08 |
| -8.15 |
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MSCI EAFE Growth Index |
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| -16.02 |
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| 31.99 |
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| 16.12 |
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| 13.28 |
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| 22.33 |
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| 16.45 |
| -8.14 |
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Small Cap Growth(3) |
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| -26.22 |
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| 34.57 |
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| 6.79 |
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| 18.52 |
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| 7.99 |
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| 20.43 |
| -9.13 |
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Russell 2000® Growth Index |
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| -30.27 |
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| 48.53 |
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| 14.31 |
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| 4.15 |
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| 13.34 |
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| 7.05 |
| -8.93 |
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Developing Markets Growth(4) |
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| -18.37 |
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| 45.96 |
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| 16.54 |
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| 33.77 |
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| 31.59 |
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| 40.72 |
| -11.24 |
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MSCI Emerging Markets Index |
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| -7.97 |
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| 51.59 |
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| 22.45 |
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| 30.31 |
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| 29.18 |
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| 36.48 |
| -12.72 |
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(2) | Pursuant to a Plan of Reorganization on 7/14/00, 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 volatility, illiquidity and the possibility of political instability. |
(5) | Pursuant to a Plan of Reorganization on 10/26/07, the Mid Cap Growth Fund acquired all of the assets of the Science and Technology Growth Fund in exchange for shares of common stock of the Mid Cap Growth Fund. |
7
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| Sit Mutual Funds |
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| Average Annual Total Returns for Periods Ended December 31, 2007 |
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| The tables 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, 2007. The index information is intended to permit you to compare each Fund’s performance to a broad measure of market performance. The after-tax returns are intended to show the impact of federal income taxes on an investment in a Fund. The highest individual federal marginal income tax rate in effect during the specified period are assumed, and the state and local tax impact is not reflected. |
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| A Fund’s “Return After Taxes on Distributions” shows the effect of taxable distributions (dividends and capital gain distributions), but assumes that you still hold the fund shares at the end of the period and so do not have any taxable gain or loss on your investment in the Fund. |
|
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| A Fund’s “Return After Taxes on Distributions and Sale of Fund Shares” shows the effect of both taxable distributions and any taxable gain or loss that would be realized if the Fund shares were purchased at the beginning and sold at the end of the specified period. |
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| The Funds’ past performance, before and after taxes, is not an indication of how the Funds will perform in the future. Your actual after-tax returns depend on your own tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future tax effects. After-tax returns are not relevant to investors who hold their Fund shares in a tax-deferred account (including a 401(k) or IRA account). Indices reflect no deduction for fees, expenses, or taxes. |
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| ||||||||
| Sit Balanced Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 10.5 | % | 10.8 | % | 5.1 | % |
|
| Return After Taxes on Distributions | 9.9 | % | 10.2 | % | 4.1 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 8.6 | % | 9.1 | % | 3.9 | % |
|
| Lehman Aggregate Bond Index | 7.0 | % | 4.4 | % | 6.0 | % |
|
| S&P 500 Index | 5.5 | % | 12.8 | % | 5.9 | % |
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| ||||||||
| Sit Dividend Growth Fund - Class I | 1 Year | 5 Years | Since Inception* | ||||
| ||||||||
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| Return Before Taxes | 12.9 | % | n/a |
| 12.8 | % |
|
| Return After Taxes on Distributions | 11.6 | % | n/a |
| 12.1 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 10.7 | % | n/a |
| 10.8 | % |
|
| S&P 500 Index | 5.5 | % | n/a |
| 9.2 | % |
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| Sit Dividend Growth Fund - Class S | 1 Year | 5 Years | Since Inception* | ||||
| ||||||||
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| Return Before Taxes | 12.6 | % | n/a |
| 25.2 | % |
|
| Return After Taxes on Distributions | 11.3 | % | n/a |
| 15.3 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 10.5 | % | n/a |
| 11.3 | % |
|
| S&P 500 Index | 5.5 | % | n/a |
| 9.5 | % |
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8
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| Sit Large Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 14.1 | % | 14.3% |
| 3.9 | % |
|
| Return After Taxes on Distributions | 14.1 | % | 14.3% |
| 3.4 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 12.0 | % | 12.6% |
| 3.3 | % |
|
| Russell 1000® Growth Index | 11.8 | % | 12.1% |
| 3.8 | % |
|
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| ||||||||
| Sit Mid Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 18.9 | % | 19.5 | % | 6.3 | % |
|
| Return After Taxes on Distributions | 18.3 | % | 19.4 | % | 5.3 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 13.3 | % | 16.7 | % | 4.9 | % |
|
| Russell Mid Cap® Growth Index | 11.4 | % | 17.9 | % | 7.6 | % |
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| ||||||||
| Sit International Growth Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 16.1 | % | 18.0 | % | 3.5 | % |
|
| Return After Taxes on Distributions | 15.9 | % | 17.9 | % | 3.1 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 13.7 | % | 15.9 | % | 2.9 | % |
|
| MSCI EAFE Growth Index | 16.5 | % | 19.9 | % | 6.5 | % |
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| ||||||||
| Sit Small Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 20.4 | % | 17.2 | % | 10.3 | % |
|
| Return After Taxes on Distributions | 20.4 | % | 17.2 | % | 9.8 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 17.4 | % | 15.2 | % | 8.9 | % |
|
| Russell 2000® Growth Index | 7.1 | % | 16.5 | % | 4.3 | % |
|
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| ||||||||
| Sit Developing Markets Growth Fund | 1 Year | 5 Years | 10 Years | ||||
| ||||||||
|
| Return Before Taxes | 40.7 | % | 33.3 | % | 11.2 | % |
|
| Return After Taxes on Distributions | 40.5 | % | 33.2 | % | 11.2 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | 34.6 | % | 30.1 | % | 10.1 | % |
|
| MSCI Emerging Markets Index | 36.5 | % | 33.7 | % | 11.7 | % |
|
9
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| |
| One Year Ended June 30, 2008 |
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| Portfolio Managers: Roger J. Sit, Bryce A. Doty, and John M. Bernstein |
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|
U.S. equities experienced a sharp correction over the past twelve months due to the combined effects of a weak housing market and surging oil prices. Although these uncertainties plaguing the stock market will not diminish immediately, we believe that equity prices now reflect considerable “bad news” and there are many attractive opportunities for long-term investment. Importantly, outside of the financial sector, corporate earnings have held up surprisingly well, particularly for companies with international exposure. Growth stocks outperformed value and “core” indices over the past year, and we believe this trend will likely continue, based on relative valuations and growth prospects. While the equity portion of the Fund remains overweighted (relative to the S&P500) in traditional growth sectors, such as health care and technology, the Fund remains well-diversified.
While bonds outperformed stocks over the past year, the weakening credit environment caused significant gyrations within the fixed-income sector. Treasuries have performed particularly well, as the credit crisis resulted in a “flight to quality” bias. We believe, however, that U.S. Treasuries are overbought and that the dislocation in many areas within the fixed-income market has created opportunities for long-term investors. As financial markets stabilize and liquidity conditions improve, perhaps in late 2008, we expect the extraordinary period of risk aversion to subside. In particular, we continue to pursue attractive investment opportunities, including asset-backed securities, that will outperform in a steepening yield curve environment.
We continue to believe that the stronger return potential lies in equities. Therefore, we think that an above-average allocation to stocks remains appropriate. As of June 30th, the asset allocation of the Fund was 62.1% equities, 35.0% fixed-income, and 2.9% 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 |
|
PORTFOLIO SUMMARY |
|
|
|
|
|
|
Net Asset Value 6/30/08: |
| $ | 16.32 Per Share |
|
|
6/30/07: |
| $ | 16.93 Per Share |
|
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|
|
|
|
|
|
Total Net Assets: |
| $ | 12.9 Million |
|
|
|
PORTFOLIO STRUCTURE |
10
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|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
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| ||
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
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|
|
|
|
| ||
3 Month** |
| -0.27 | % |
| -2.73 | % |
| -1.02 | % | ||
6 Month** |
| -5.61 |
|
| -11.92 |
|
| 1.13 |
| ||
1 Year |
| -1.72 |
|
| -13.12 |
|
| 7.12 |
| ||
5 Year |
| 7.52 |
|
| 7.58 |
|
| 3.85 |
| ||
10 Year |
| 3.03 |
|
| 2.88 |
|
| 5.68 |
| ||
Inception |
| 7.16 |
|
| 9.18 |
|
| 6.10 |
| ||
| (12/31/93) |
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CUMULATIVE TOTAL RETURNS* | |||||||||||
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| |
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
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|
|
|
|
|
|
| ||
1 Year |
| -1.72 | % |
| -13.12 | % |
| 7.12 | % | ||
5 Year |
| 43.70 |
|
| 44.12 |
|
| 20.82 |
| ||
10 Year |
| 34.84 |
|
| 32.86 |
|
| 73.82 |
| ||
Inception |
| 172.82 |
|
| 257.48 |
|
| 136.11 |
| ||
(12/31/93) |
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*As of 6/30/08. |
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| **Not annualized. |
| ||||
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|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance.
|
|
(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 6/30/98 and held until 6/30/08 would have grown to $13,484 in the Fund, $13,286 in the S&P 500 Index or $17,382 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | 1. | Southwestern Energy Co. |
| 2. | Schlumberger, Ltd. |
| 3. | Monsanto Co. |
| 4. | Equitable Resources, Inc. |
| 5. | XTO Energy, Inc. |
Bonds | 1. | American Strategic, Inc. Portfolio II |
| 2. | MBIA Insurance Co., 14.00%, 1/15/33 |
| 3. | Procter & Gamble ESOP, 9.36%, 1/1/21 |
| 4. | U.S. Treasury Strip, 8/15/20 |
| 5. | U.S. TIPS, 2.38%, 1/15/27 |
Total Number of Holdings: 180 |
11
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| Sit Balanced Fund |
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| Portfolio of Investments - June 30, 2008 |
|
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|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (62.1%) (2) |
|
|
| ||
Communications (2.6%) |
|
|
| ||
4,100 |
| AT&T, Inc. |
| 138,129 |
|
2,300 |
| Crown Castle Intl. Corp. (3) |
| 89,079 |
|
3,200 |
| Verizon Communications, Inc. |
| 113,280 |
|
|
|
|
|
| |
|
|
|
| 340,488 |
|
|
|
|
|
| |
Consumer Durables (0.3%) |
|
|
| ||
1,100 |
| Activision, Inc. (3) |
| 37,477 |
|
|
|
|
|
| |
Consumer Non-Durables (4.8%) |
|
|
| ||
2,700 |
| Coca-Cola Company |
| 140,346 |
|
1,300 |
| Colgate-Palmolive Co. |
| 89,830 |
|
700 |
| NIKE, Inc. |
| 41,727 |
|
2,600 |
| PepsiCo, Inc. |
| 165,334 |
|
800 |
| Philip Morris International, Inc. |
| 39,512 |
|
2,000 |
| The Procter & Gamble Co. |
| 121,620 |
|
300 |
| VF Corp. |
| 21,354 |
|
|
|
|
|
| |
|
|
|
| 619,723 |
|
|
|
|
|
| |
Consumer Services (2.0%) |
|
|
| ||
2,100 |
| Comcast Corp. |
| 39,837 |
|
2,000 |
| International Game Technology |
| 49,960 |
|
2,400 |
| McDonald’s Corp. |
| 134,928 |
|
3,000 |
| News Corp. |
| 45,120 |
|
|
|
|
|
| |
|
|
|
| 269,845 |
|
|
|
|
|
| |
Electronic Technology (6.7%) |
|
|
| ||
1,400 |
| Analog Devices, Inc. |
| 44,478 |
|
525 |
| Apple Computer, Inc. (3) |
| 87,906 |
|
3,400 |
| Applied Materials, Inc. |
| 64,906 |
|
1,000 |
| Broadcom Corp. (3) |
| 27,290 |
|
7,400 |
| Cisco Systems, Inc. (3) |
| 172,124 |
|
4,000 |
| EMC Corp. (3) |
| 58,760 |
|
1,300 |
| Hewlett-Packard Co. |
| 57,473 |
|
4,700 |
| Intel Corp. |
| 100,956 |
|
700 |
| IBM Corp. |
| 82,971 |
|
3,000 |
| Qualcomm, Inc. |
| 133,110 |
|
1,400 |
| Texas Instruments, Inc. |
| 39,424 |
|
|
|
|
|
| |
|
|
|
| 869,398 |
|
|
|
|
|
| |
Energy Minerals (7.5%) |
|
|
| ||
1,000 |
| Murphy Oil Corp. |
| 98,050 |
|
2,000 |
| Occidental Petroleum Corp. |
| 179,720 |
|
5,400 |
| Southwestern Energy Co. (3) |
| 257,094 |
|
800 |
| Suncor Energy, Inc. |
| 46,496 |
|
1,500 |
| Ultra Petroleum Corp. (3) |
| 147,300 |
|
900 |
| Valero Energy Corp. |
| 37,062 |
|
2,916 |
| XTO Energy, Inc. |
| 199,775 |
|
|
|
|
|
| |
|
|
|
| 965,497 |
|
|
|
|
|
| |
Finance (4.7%) |
|
|
| ||
2,100 |
| Bank of New York Mellon Financial Corp. |
| 79,443 |
|
75 |
| Chicago Mercantile Exchange Holdings Inc. |
| 28,739 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
2,166 |
| Citigroup, Inc. |
| 36,302 |
1,000 |
| Franklin Resources, Inc. |
| 91,650 |
600 |
| Goldman Sachs Group, Inc. |
| 104,940 |
2,100 |
| JPMorgan Chase & Co. |
| 72,051 |
500 |
| Morgan Stanley |
| 18,035 |
600 |
| PartnerRe, Ltd. |
| 41,478 |
1,100 |
| Prudential Financial, Inc. |
| 65,714 |
1,000 |
| U.S. Bancorp |
| 27,890 |
1,600 |
| Wells Fargo & Co. |
| 38,000 |
|
|
|
| |
|
|
|
| 604,242 |
|
|
|
| |
Health Services (1.1%) |
|
| ||
600 |
| McKesson Corp. |
| 33,546 |
1,200 |
| Medco Health Solutions, Inc. (3) |
| 56,640 |
1,700 |
| UnitedHealth Group, Inc. |
| 44,625 |
|
|
|
| |
|
|
|
| 134,811 |
|
|
|
| |
Health Technology (7.6%) |
|
| ||
2,300 |
| Abbott Laboratories |
| 121,831 |
600 |
| Allergan, Inc. |
| 31,230 |
2,400 |
| Celgene Corp. (3) |
| 153,288 |
2,300 |
| Genentech, Inc. (3) |
| 174,570 |
1,500 |
| Genzyme Corp. (3) |
| 108,030 |
2,400 |
| Gilead Sciences, Inc. (3) |
| 127,080 |
700 |
| Johnson & Johnson |
| 45,038 |
1,800 |
| Medtronic, Inc. |
| 93,150 |
1,700 |
| Thermo Fisher Scientific, Inc. |
| 94,741 |
500 |
| Zimmer Holdings, Inc. (3) |
| 34,025 |
|
|
|
| |
|
|
|
| 982,983 |
|
|
|
| |
Industrial Services (4.7%) |
|
| ||
2,100 |
| McDermott International, Inc. |
| 129,969 |
1,300 |
| National-Oilwell Varco, Inc. (3) |
| 115,336 |
1,000 |
| Noble Corp. |
| 64,960 |
2,100 |
| Schlumberger, Ltd. |
| 225,603 |
450 |
| Transocean, Inc. (3) |
| 68,576 |
|
|
|
| |
|
|
|
| 604,444 |
|
|
|
| |
Non-Energy Minerals (1.0%) |
|
| ||
650 |
| Allegheny Technologies, Inc. |
| 38,532 |
800 |
| Freeport-McMoRan Copper & Gold |
| 93,752 |
|
|
|
| |
|
|
|
| 132,284 |
|
|
|
| |
Process Industries (2.9%) |
|
| ||
1,150 |
| Air Products and Chemicals, Inc. |
| 113,689 |
1,000 |
| Ecolab, Inc. |
| 42,990 |
1,700 |
| Monsanto Co. |
| 214,948 |
|
|
|
| |
|
|
|
| 371,627 |
|
|
|
| |
Producer Manufacturing (5.5%) |
|
| ||
2,900 |
| ABB, Ltd. |
| 82,128 |
1,400 |
| Deere & Co. |
| 100,982 |
1,800 |
| Emerson Electric Co. |
| 89,010 |
950 |
| General Dynamics Corp. |
| 79,990 |
4,200 |
| General Electric Co. |
| 112,098 |
12
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
700 |
| ITT Industries, Inc. |
| 44,331 |
|
800 |
| Lockheed Martin Corp. |
| 78,928 |
|
1,000 |
| The Boeing Co. |
| 65,720 |
|
900 |
| United Technologies Corp. |
| 55,530 |
|
|
|
|
|
| |
|
|
|
| 708,717 |
|
|
|
|
|
| |
Retail Trade (2.2%) |
|
|
| ||
3,700 |
| CVS/Caremark Corp. |
| 146,409 |
|
1,600 |
| Target Corp. |
| 74,384 |
|
1,200 |
| Wal-Mart Stores, Inc. |
| 67,440 |
|
|
|
|
|
| |
|
|
|
| 288,233 |
|
|
|
|
|
| |
Technology Services (5.8%) |
|
|
| ||
2,200 |
| Accenture Ltd. |
| 89,584 |
|
2,000 |
| Adobe Systems, Inc. (3) |
| 78,780 |
|
250 |
| Google, Inc. (3) |
| 131,605 |
|
7,000 |
| Microsoft Corp. |
| 192,570 |
|
5,000 |
| Oracle Corporation |
| 105,000 |
|
800 |
| SAP AG |
| 41,688 |
|
1,300 |
| Visa, Inc. |
| 105,703 |
|
|
|
|
|
| |
|
|
|
| 744,930 |
|
|
|
|
|
| |
Transportation (1.2%) |
|
|
| ||
1,200 |
| Burlington Northern Sante Fe Corp. |
| 119,868 |
|
625 |
| United Parcel Service, Inc. |
| 38,419 |
|
|
|
|
|
| |
|
|
|
| 158,287 |
|
|
|
|
|
| |
Utilities (1.5%) |
|
|
| ||
2,900 |
| Equitable Resources, Inc. |
| 200,274 |
|
|
|
|
|
| |
|
|
|
|
| |
Total common stocks |
| 8,033,260 |
| ||
|
|
|
|
| |
(cost: $6,290,809) |
|
|
| ||
|
|
|
|
|
|
Bonds (32.1%) (2) |
|
|
| ||
Asset-Backed Securities (5.5%) |
|
|
| ||
|
| Countrywide Home Loans: |
|
|
|
100,000 |
| 2006-S6 A3, 5.66%, 3/25/34 |
| 71,840 |
|
25,000 |
| 2006-S6 A4, 5.80%, 3/25/34 |
| 13,592 |
|
100,000 |
| 2006-S8 A2, 5.39%, 4/25/36 |
| 69,969 |
|
75,000 |
| 2006-S9 A6, 5.59%, 8/25/36 |
| 48,144 |
|
10,560 |
| 2006-S10 A1, 5.43%, 10/25/36 |
| 9,853 |
|
|
| GMAC Mortgage Corporation Loan Trust: |
|
|
|
90,000 |
| 2007-HE2 A4, 6.42%, 7/25/37 |
| 67,500 |
|
75,000 |
| 2007-HE2 A5, 6.55%, 7/25/37 |
| 37,500 |
|
25,000 |
| 2006-A4, 6.09%, 10/25/36 |
| 15,000 |
|
|
| Green Tree Financial Corp: |
|
|
|
27,203 |
| 1997-1 A6, 7.29%, 3/15/28 |
| 27,277 |
|
29,122 |
| 1997-6 A10, 6.87%, 1/15/29 |
| 28,473 |
|
30,736 |
| Indymac Mfg. Housing, |
|
|
|
|
| 1998-2 A2, 6.17%, 12/25/11 |
| 29,280 |
|
|
| Origen Mfg. Housing: |
|
|
|
29,274 |
| 2001-A A5, 7.08%, 3/15/32 |
| 29,699 |
|
18,564 |
| 2002-A A3, 6.17%, 5/15/23 |
| 17,772 |
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
|
| Residential Funding: |
|
|
40,000 |
| 2003-HI2 A6, 4.76%, 7/25/28 |
| 36,832 |
100,000 |
| 2006-HSA2 AI2, 5.50%, 3/25/36 |
| 48,222 |
75,000 |
| 2006-HSA1 A4, 5.49%, 11/25/35 |
| 24,754 |
50,000 |
| 2007-HI1 A3, 5.72%, 3/25/37 |
| 26,785 |
75,000 |
| 2007-HSA2 A3, 5.75%, 12/25/25 |
| 56,424 |
40,000 |
| 2006-HI2 A4, 6.20%, 2/25/36 |
| 19,955 |
50,000 |
| Structured Asset Securities Corp. |
|
|
|
| 2005-4XS, 5.25%, 3/25/35 |
| 33,778 |
|
|
|
| |
|
|
|
| 712,649 |
|
| |||
Collateralized Mortgage Obligations (8.0%) |
|
| ||
|
| Bank of America Funding Corp: |
|
|
63,332 |
| 2003-2 1A1, 6.50%, 6/25/32 |
| 64,717 |
39,474 |
| 2005-5 A11, 5.50%, 9/25/35 |
| 36,933 |
50,000 |
| 2006-7 A12, 6.00%, 9/25/36 |
| 48,296 |
|
| Countrywide Alternative Loan Trust: |
|
|
6,714 |
| 2005-53T2 2A1, 6.00%, 11/25/35 |
| 5,834 |
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 |
| 108,355 |
26,895 |
| Federal Home Loan Mortgage Corp., |
|
|
|
| 3.25%, 4/15/32 |
| 24,622 |
|
| Federal National Mtg. Association: |
|
|
64,975 |
| 6.50%, 10/25/17 |
| 67,898 |
23,161 |
| 5.50%, 5/25/25 |
| 23,227 |
32,219 |
| 4.00%, 5/25/33 |
| 30,473 |
100,000 |
| 5.50%, 4/25/35 |
| 100,176 |
37,293 |
| 7.00%, 2/25/44 |
| 39,590 |
31,920 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
| 6.00%, 5/25/35 |
| 29,900 |
75,000 |
| JPALT 2006-S3, 6.12%, 8/25/36 |
| 64,782 |
42,785 |
| Master Asset Securitization Trust |
|
|
|
| 2003-4 CA1, 8.00%, 5/25/18 |
| 44,551 |
|
| Residential Funding Mtg. Securities: |
|
|
45,368 |
| 2005-S6 A2, 5.25%, 8/25/35 |
| 40,431 |
97,310 |
| 2006-S3 A8, 5.50%, 03/25/36 |
| 86,904 |
97,623 |
| Vendee Mtg. Tr., 2008-1 B, 8.21%, 3/15/25 |
| 107,385 |
30,706 |
| Washington Mutual Mtg. Pass-Through |
|
|
|
| 2002-S8, 5.25%, 1/25/18 |
| 30,140 |
75,000 |
| Wells Fargo Mortgage Backed Securities |
|
|
|
| 2002-S8, 6.00%, 10/25/36 |
| 73,811 |
|
|
|
| |
|
|
|
| 1,028,025 |
|
|
|
| |
Corporate Bonds (6.6%) |
|
| ||
65,983 |
| America West Airlines, 7.93%, 1/2/19 |
| 69,612 |
25,000 |
| Bank of NY Mellon MTN, 4.95%, 11/1/12 |
| 24,927 |
50,000 |
| Bard (C.R.), Inc., 6.70%, 12/1/26 |
| 50,961 |
100,000 |
| Continental Airlines, Inc., 6.56%, 2/15/12 |
| 91,500 |
50,000 |
| JPM Chase Capital, 6.80%, 10/1/37 |
| 44,879 |
100,000 |
| JP Morgan Chase & Co., 6.40%, 5/15/38 |
| 92,754 |
300,000 |
| MBIA Insurance Co., 14.00%, 1/15/33 |
| 124,500 |
35,000 |
| MBNA Bank, 6.63%, 6/15/12 |
| 36,679 |
See accompanying notes to portfolios of investments on page 40.
13
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
50,000 |
| Midamerican Energy Hldgs, 8.48%, 9/15/28 |
| 58,332 |
|
93,384 |
| Procter & Gamble ESOP, 9.36%, 1/1/21 |
| 117,333 |
|
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 |
| 70,884 |
|
25,000 |
| US Bank Corp., 6.38%, 8/1/11 |
| 26,112 |
|
50,000 |
| Wells Fargo Co., 5.25%, 10/23/12 |
| 50,280 |
|
|
|
|
|
| |
|
|
|
| 858,753 |
|
|
|
|
|
| |
Federal Home Loan Mortgage Corporation (3.0%) |
|
|
| ||
96,111 |
| 5.50%, 2/1/38 |
| 94,774 |
|
81,535 |
| 7.00%, 7/1/32 |
| 85,570 |
|
81,598 |
| 7.00%, 5/1/34 |
| 85,636 |
|
40,997 |
| 8.00%, 9/1/15 |
| 43,555 |
|
28,929 |
| 8.38%, 5/17/20 |
| 31,442 |
|
15,118 |
| 8.50%, 7/1/18 |
| 16,301 |
|
32,724 |
| 8.50%, 10/1/30 |
| 35,479 |
|
|
|
|
|
| |
|
|
|
| 392,757 |
|
|
|
|
|
| |
Federal National Mortgage Association (2.9%) |
|
|
| ||
47,518 |
| 7.00%, 5/1/32 |
| 49,863 |
|
80,651 |
| 7.15%, 10/1/30 |
| 86,300 |
|
16,251 |
| 7.50%, 6/1/32 |
| 17,644 |
|
60,643 |
| 7.50%, 4/1/33 |
| 64,052 |
|
16,633 |
| 8.00%, 12/1/27 |
| 18,025 |
|
55,167 |
| 8.00%, 2/1/31 |
| 59,690 |
|
29,869 |
| 8.47%, 4/15/26 |
| 33,012 |
|
18,852 |
| 9.50%, 5/1/27 |
| 21,121 |
|
7,616 |
| 9.75%, 1/1/13 |
| 8,215 |
|
6,962 |
| 10.25%, 6/15/13 |
| 7,566 |
|
13,154 |
| 11.00%, 12/1/12 |
| 14,393 |
|
|
|
|
|
| |
|
|
|
| 379,881 |
|
|
|
|
|
| |
Government National Mortgage Association (2.0%) |
|
|
| ||
47,482 |
| 7.00%, 12/15/24 |
| 50,996 |
|
99,316 |
| 8.00%, 7/15/24 |
| 105,690 |
|
78,800 |
| 8.375%, 3/15/31 |
| 86,097 |
|
1,608 |
| 9.00%, 6/15/11 |
| 1,728 |
|
614 |
| 9.00%, 6/15/09 |
| 630 |
|
6,515 |
| 9.00%, 11/15/16 |
| 7,096 |
|
952 |
| 9.50%, 5/20/16 |
| 1,043 |
|
1,451 |
| 9.50%, 9/20/18 |
| 1,602 |
|
557 |
| 11.25%, 10/15/11 |
| 611 |
|
|
|
|
|
| |
|
|
|
| 255,493 |
|
|
|
|
|
| |
|
|
|
|
|
|
Taxable Municipal Securities (0.8%) |
|
|
| ||
100,000 |
| Academica Charter School, 8.00%, 8/15/24 |
| 92,759 |
|
8,000 |
| Bernalillo Multifamily, Series 1998A, 7.50%, 9/20/20 |
| 8,460 |
|
|
|
|
|
| |
|
|
|
| 101,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||||
|
|
|
|
| ||
U.S. Government Securities (3.3%) |
|
| ||||
|
| U.S. Treasury Strips, Zero Coupon: |
|
| ||
100,000 |
| 3.01% effective yield, 5/15/13 |
| 84,608 | ||
200,000 |
| 4.74% effective yield, 8/15/20 |
| 114,559 | ||
175,000 |
| 5.02% effective yield, 5/15/30 |
| 63,216 | ||
106,504 |
| U.S. Treasury inflation-protected security, 2.38%, 1/15/27 (*) |
| 111,654 | ||
50,000 |
| U.S. Treasury Note, 4.88%, 8/15/16 |
| 53,605 | ||
|
|
|
| |||
|
|
|
| 427,642 | ||
|
|
|
| |||
|
|
|
|
| ||
Total bonds |
| 4,156,419 | ||||
|
|
|
| |||
(cost: $4,682,165) |
|
| ||||
|
|
|
|
| ||
Closed-End Mutual Funds (2.9%) (2) |
|
| ||||
6,309 |
| American Select Portfolio |
| 68,516 | ||
6,703 |
| American Strategic, Inc. Portfolio |
| 68,505 | ||
14,470 |
| American Strategic, Inc. Portfolio II |
| 151,212 | ||
8,409 |
| American Strategic, Inc. Portfolio III |
| 85,183 | ||
|
|
|
| |||
Total closed-end mutual funds |
| 373,416 | ||||
|
| |||||
(cost: $405,621) |
|
| ||||
|
|
|
|
| ||
Short-Term Securities (2.5%) (2) |
|
| ||||
327,000 |
| Sit Money Market Fund, 2.08% (4) |
| 327,000 | ||
|
|
|
| |||
(cost: $327,000) |
|
| ||||
|
|
|
|
|
|
|
Total investments in securities |
| $ | 12,890,095 | |||
|
|
| ||||
(cost: $11,705,595) (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 40.
14
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|
|
|
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|
|
|
| |
|
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| ||
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|
| ||
| |
| ||
|
|
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|
|
This page has been left blank intentionally.
15
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, and Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Dividend Growth Fund (Class I) posted a -3.06% return over the last twelve months, compared to the -13.12% return for the S&P 500 Index.
(-34%).
|
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 |
|
|
|
|
|
|
|
|
|
6/30/08: |
| $13.11 Per Share |
| $13.08 Per Share |
|
|
|
|
|
6/30/07: |
| $14.42 Per Share |
| $14.39 Per Share |
|
|
|
|
|
Total Net Assets |
| $41.2 Million |
| $14.3 Million |
|
|
|
|
|
Weighted Average Market cap: $67.4 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
|
| Class |
| S&P 500 | Class |
| S&P 500 |
| ||||||||
3 Month** |
|
| -0.32 | % |
|
| -2.73 | % | -0.43 | % |
| -2.73 | % | |||
6 Month** |
|
| -6.15 |
|
|
| -11.92 |
| -6.26 |
|
| -11.92 |
| |||
1 Year |
|
| -3.06 |
|
|
| -13.12 |
| -3.27 |
|
| -13.12 |
| |||
3 Year |
|
| 10.05 |
|
|
| 4.41 |
| n/a |
|
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
| n/a |
|
| n/a |
| |||
Inception*** |
|
| 9.76 |
|
|
| 5.11 |
| 7.38 |
|
| 1.43 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Class |
| S&P 500 | Class |
| S&P 500 | |||||||||
1 Year |
|
| -3.06 | % |
|
| -13.12 | % | -3.27 | % |
| -13.12 | % | |||
3 Year |
|
| 33.30 |
|
|
| 13.81 |
| n/a |
|
| n/a |
| |||
5 Year |
|
| n/a |
|
|
| n/a |
| n/a |
|
| n/a |
| |||
Inception*** |
|
| 52.08 |
|
|
| 25.17 |
| 17.38 |
|
| 3.25 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/08 |
| |||||||||||||||
|
| |||||||||||||||
**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 6/30/08 would have grown to $15,208 in the Fund or $12,517 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Occidental Petroleum Corp. |
| 2. | Johnson & Johnson |
| 3. | Verizon Communications Inc. |
| 4. | Procter & Gamble Co. |
| 5. | Microsoft Corp. |
| 6. | General Electric Co. |
| 7. | Chevron Corp. |
| 8. | Total SA |
| 9. | Marathon Oil Corp |
| 10. | Becton Dickinson & Co. |
|
| Total Number of Holdings: 91 |
17
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (96.7%) (2) |
|
|
| ||
| |||||
Communications (3.9%) |
|
|
| ||
5,900 |
| Telefonica S.A. |
| 469,522 |
|
35,900 |
| Verizon Communications, Inc. |
| 1,270,860 |
|
14,100 |
| Vodafone Group, A.D.R. |
| 415,386 |
|
|
|
|
|
| |
|
|
|
| 2,155,768 |
|
|
|
|
|
| |
Consumer Non-Durables (9.8%) |
|
|
| ||
10,300 |
| Colgate-Palmolive Co. |
| 711,730 |
|
9,600 |
| Diageo p.l.c. |
| 709,152 |
|
10,800 |
| General Mills, Inc. |
| 656,316 |
|
10,100 |
| Kimberly-Clark Corp. |
| 603,778 |
|
15,000 |
| PepsiCo, Inc. |
| 953,850 |
|
20,800 |
| Procter & Gamble Co. |
| 1,264,848 |
|
7,700 |
| VF Corp. |
| 548,086 |
|
|
|
|
|
| |
|
|
|
| 5,447,760 |
|
|
|
|
|
| |
Consumer Services (2.0%) (2) |
|
|
| ||
11,900 |
| McDonald’s Corp. |
| 669,018 |
|
34,500 |
| Pearson, A.D.R. |
| 422,625 |
|
|
|
|
|
| |
|
|
|
| 1,091,643 |
|
|
|
|
|
| |
Electronic Technology (5.9%) |
|
|
| ||
11,800 |
| Analog Devices, Inc. |
| 374,886 |
|
3,000 |
| Hewlett-Packard Co. |
| 132,630 |
|
37,100 |
| Intel Corp. |
| 796,908 |
|
8,000 |
| International Business Machines Corp. |
| 948,240 |
|
15,400 |
| Qualcomm, Inc. |
| 683,298 |
|
14,200 |
| Xilinx, Inc. |
| 358,550 |
|
|
|
|
|
| |
|
|
|
| 3,294,512 |
|
|
|
|
|
| |
Energy Minerals (11.9%) |
|
|
| ||
18,600 |
| Atlas Energy Resources, LLC |
| 709,590 |
|
12,400 |
| Chevron Corp. |
| 1,229,212 |
|
19,700 |
| Marathon Oil Corp. |
| 1,021,839 |
|
17,200 |
| Occidental Petroleum Corp. |
| 1,545,592 |
|
6,800 |
| Sasol, A.D.R. |
| 400,792 |
|
13,500 |
| Total S.A. |
| 1,151,145 |
|
7,575 |
| XTO Energy, Inc. |
| 518,963 |
|
|
|
|
|
| |
|
|
|
| 6,577,133 |
|
|
|
|
|
| |
Finance (17.1%) |
|
|
| ||
14,900 |
| ACE, Ltd. |
| 820,841 |
|
13,800 |
| AllianceBernstein Holding, LP |
| 754,584 |
|
19,300 |
| Apollo Investment Corp. |
| 276,569 |
|
24,600 |
| Aspen Insurance Holdings, Ltd. |
| 582,282 |
|
11,600 |
| Bank of New York Mellon Corp. |
| 438,828 |
|
21,100 |
| Citigroup, Inc. |
| 353,636 |
|
3,900 |
| Franklin Resources, Inc. |
| 357,435 |
|
|
|
|
|
| |
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
14,900 |
| Invesco, Ltd. |
| 357,302 | |
15,850 |
| J.P. Morgan Chase & Co. |
| 543,814 | |
14,800 |
| Lincoln National Corp. |
| 670,736 | |
11,800 |
| Macquarie Infrastructure Co. Trust |
| 298,422 | |
9,600 |
| Morgan Stanley |
| 346,272 | |
21,100 |
| New York Community Bancorp, Inc. |
| 376,424 | |
5,900 |
| Northern Trust Corp. |
| 404,563 | |
9,900 |
| PartnerRe, Ltd. |
| 684,387 | |
19,100 |
| TCF Financial Corp. |
| 229,773 | |
18,600 |
| U.S. Bancorp |
| 518,754 | |
18,100 |
| Validus Holdings, Ltd. |
| 384,625 | |
29,900 |
| Wells Fargo & Co. |
| 710,125 | |
11,700 |
| Zenith National Insurance Corp. |
| 411,372 | |
|
|
|
| ||
|
|
|
| 9,520,744 | |
|
|
|
| ||
Health Services (2.3%) |
|
| |||
10,900 |
| McKesson Corp. |
| 609,419 | |
8,700 |
| Owens & Minor, Inc. |
| 397,503 | |
8,900 |
| Quality Systems, Inc. |
| 260,592 | |
|
|
|
| ||
|
|
|
| 1,267,514 | |
|
|
|
| ||
Health Technology (12.4%) |
|
| |||
16,700 |
| Abbott Laboratories |
| 884,599 | |
12,100 |
| Becton, Dickinson & Co. |
| 983,730 | |
4,800 |
| C.R. Bard, Inc. |
| 422,160 | |
12,350 |
| Eli Lilly and Co. |
| 570,076 | |
23,300 |
| Johnson & Johnson, Inc. |
| 1,499,122 | |
14,600 |
| Medtronic, Inc. |
| 755,550 | |
18,500 |
| Merck & Co., Inc. |
| 697,265 | |
11,600 |
| Novartis AG, A.D.R. |
| 638,464 | |
15,500 |
| PerkinElmer, Inc. |
| 431,675 | |
|
|
|
| ||
|
|
|
| 6,882,641 | |
|
|
|
| ||
Industrial Services (3.6%) |
|
| |||
4,600 |
| Diamond Offshore Drilling, Inc. |
| 640,044 | |
16,100 |
| Halliburton Co. |
| 854,427 | |
6,200 |
| Lufkin Industries, Inc. |
| 516,336 | |
|
|
|
| ||
|
|
|
| 2,010,807 | |
|
|
|
| ||
Non-Energy Minerals (1.1%) |
|
| |||
2,700 |
| Southern Peru Copper Corp. |
| 287,901 | |
6,700 |
| Teck Cominco, Ltd. |
| 321,265 | |
|
|
|
| ||
|
|
|
| 609,166 | |
|
|
|
| ||
Process Industries (0.9%) |
|
| |||
6,200 |
| Compass Minerals International, Inc. |
| 499,472 | |
|
|
|
|
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| |||
|
|
|
|
|
| |
Producer Manufacturing (12.4%) |
|
|
|
| ||
6,200 |
| 3M Co. |
|
| 431,458 |
|
19,300 |
| ABB, Ltd., A.D.R. |
|
| 546,576 |
|
10,300 |
| Deere & Co. |
|
| 742,939 |
|
16,900 |
| Emerson Electric Co. |
|
| 835,705 |
|
9,800 |
| General Dynamics Corp. |
|
| 825,160 |
|
47,000 |
| General Electric Co. |
|
| 1,254,430 |
|
11,000 |
| Honeywell International Inc. |
|
| 553,080 |
|
9,000 |
| Lockheed Martin Corp. |
|
| 887,940 |
|
13,200 |
| United Technologies Corp. |
|
| 814,440 |
|
|
|
|
|
|
| |
|
|
|
|
| 6,891,728 |
|
|
|
|
|
|
| |
Retail Trade (1.9%) |
|
|
|
| ||
9,100 |
| Best Buy Co., Inc. |
|
| 360,360 |
|
4,200 |
| Costco Wholesale Corp. |
|
| 294,588 |
|
11,900 |
| TJX Co |
|
| 374,493 |
|
|
|
|
|
|
| |
|
|
|
|
| 1,029,441 |
|
|
|
|
|
|
| |
Technology Services (4.3%) |
|
|
|
| ||
14,100 |
| Accenture, Ltd. |
|
| 574,152 |
|
6,600 |
| Automatic Data Processing, Inc. |
|
| 276,540 |
|
45,700 |
| Microsoft Corp. |
|
| 1,257,207 |
|
8,722 |
| Syntel, Inc. |
|
| 294,106 |
|
|
|
|
|
|
| |
|
|
|
|
| 2,402,005 |
|
|
|
|
|
|
| |
Transportation (3.2%) |
|
|
|
| ||
5,400 |
| Burlington Northern Santa Fe Corp. |
|
| 539,406 |
|
4,700 |
| C.H. Robinson Worldwide |
|
| 257,748 |
|
9,000 |
| Eagle Bulk Shipping, Inc. |
|
| 266,130 |
|
8,500 |
| Tsakos Energy Navigation, Ltd. |
|
| 315,180 |
|
6,850 |
| United Parcel Service, Inc. |
|
| 421,069 |
|
|
|
|
|
|
| |
|
|
|
|
| 1,799,533 |
|
|
|
|
|
|
| |
Utilities (4.0%) |
|
|
|
| ||
9,100 |
| Equitable Resources, Inc. |
|
| 628,446 |
|
7,800 |
| Exelon Corp. |
|
| 701,688 |
|
7,600 |
| Holly Energy Partners |
|
| 296,400 |
|
12,100 |
| ONEOK, Inc. |
|
| 590,843 |
|
|
|
|
|
|
| |
|
|
|
|
| 2,217,377 |
|
|
|
|
|
|
| |
| ||||||
Total common stocks |
|
| 53,697,244 |
| ||
|
|
|
|
|
| |
(cost: $52,016,293) |
|
|
|
| ||
| ||||||
Convertible Bonds (0.7%) (2) |
|
|
|
| ||
315,000 |
| Flotek Industries, 5.25%, 2/15/28 |
|
| 361,463 |
|
|
|
|
|
|
| |
| ||||||
(cost: $315,000) |
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) | |||
|
|
|
|
|
|
Closed-End Mutual Funds (1.2%) (2) |
|
|
| ||
25,250 |
| Kayne Anderson MLP Invest. Co. |
|
| 692,860 |
|
|
|
| ||
| |||||
(cost: $735,689) |
|
|
| ||
| |||||
Short-Term Securities (1.8%) (2) |
|
|
| ||
1,010,000 |
| Sit Money Market Fund, 2.08% (4) |
|
| 1,010,000 |
|
|
|
| ||
(cost: $1,010,000) |
|
|
| ||
| |||||
Total investments in securities |
|
|
| ||
(cost: $54,076,982) (5) |
| $ | 55,761,567 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 40. |
|
19
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Ronald D. Sit, and Michael J. Stellmacher |
|
|
|
|
|
|
|
|
The Sit Large Cap Growth Fund’s one-year return was -1.03%, compared to the Russell 1000 Growth Index return of -5.95%. The S&P 500 Index was -13.12% for the period.
Following several years of robust economic growth, fallout from the housing and credit markets have taken their toll on both the economy and the equity market over the past year. We expect stocks to remain quite volatile as investors reassess corporate earnings prospects in this slow growth environment. While there is growing speculation that a U.S. recession is imminent, we are not so sure. The nation’s unemployment rate remains quite low at 5.5%; the Federal Reserve has aggressively lowered short-term rates; and a weak U.S. currency has fueled export growth as many countries outside the U.S. continue to experience strong growth. Importantly, a slower growth environment has historically favored the performance of growth stocks, and we see solid return potential for a variety of high growth industries based on business trends and attractive valuations. For example, we continue to see strong growth opportunities within the technology sector, particularly for those companies focused on increasing corporate productivity and communications. Fundamentals for the health care sector also remain strong (particularly outside the large drug companies), driven by the ongoing combination of favorable demographics and innovation, both in services and products. These remain heavily-weighted sectors within the Fund, along with producer manufacturing and industrial services.
Relative to the Russell 1000 Growth Index, performance over the past year was aided by an overweighted position in the energy sector, along with positive stock selection in the process industries, health technology and producer manufacturing sectors. In terms of individual stocks, Southwestern Energy (+114% total return over the past twelve months), Monsanto (+89%), Ultra Petroleum (+78%), Murphy Oil (+67%) and Occidental Petroleum(+58%) were among the key winners during the period. The lagging groups within the Fund over the period included the finance, electronic technology and communications sectors. Citigroup was the worst individual performer, declining -66% over the past twelve months.
We remain enthusiastic about the Fund’s prospects in the year ahead and appreciate shareholders’ continued 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 6/30/08: |
| $43.41 Per Share |
6/30/07: |
| $43.99 Per Share |
| ||
Total Net Assets: |
| $287.7 Million |
| ||
Weighted Average Market Cap: |
| $68.4 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
| |||||||||||
|
|
|
|
|
| ||||||
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
3 Month** |
| 2.00 | % |
| 1.25 | % |
| -1.89 | % |
| |
6 Month** |
| -5.61 |
|
| -9.06 |
|
| -11.20 |
|
| |
1 Year |
| -1.03 |
|
| -5.95 |
|
| -12.36 |
|
| |
5 Year |
| 10.38 |
|
| 7.32 |
|
| 8.22 |
|
| |
10 Year |
| 1.20 |
|
| 0.96 |
|
| 3.38 |
|
| |
Inception*** |
| 10.70 |
|
| 11.28 |
|
| 12.49 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
| Sit Large |
| Russell |
| Russell |
| ||||
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
| -1.03 | % |
| -5.95 | % |
| -12.36 | % |
| |
5 Year |
| 63.83 |
|
| 42.39 |
|
| 48.46 |
|
| |
10 Year |
| 12.66 |
|
| 9.99 |
|
| 39.42 |
|
| |
Inception*** |
| 1284.12 |
|
| 1484.16 |
|
| 1992.74 |
|
| |
(9/2/82) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
*As of 6/30/08 | **Not annualized. |
| |||||||||
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. ***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 6/30/98 and held until 6/30/08 would have grown to $11,266 in the Fund or $10,999 in the Russell 1000® Growth Index assuming reinvestment of all dividends and capital gains..
|
TOP 10 HOLDINGS |
|
|
1. | Monsanto Co. |
2. | Schlumberger, Ltd. |
3. | XTO Energy, Inc. |
4. | Equitable Resources, Inc. |
5. | Southwestern Energy Co. |
6. | Microsoft Corp. |
7. | Celgene Corp. |
8. | Cisco Systems, Inc. |
9. | Occidental Petroleum Corp. |
10. | Coca-Cola Co. |
| Total Number of Holdings: 90 |
21
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Common Stocks (92.3%) (2) |
|
|
| ||
|
|
|
| ||
Communications (4.1%) |
|
|
| ||
145,300 |
| AT&T, Inc. |
| 4,895,157 |
|
81,400 |
| Crown Castle Intl. Corp. (3) |
| 3,152,622 |
|
108,600 |
| Verizon Communications, Inc. |
| 3,844,440 |
|
|
|
|
|
| |
|
|
|
| 11,892,219 |
|
|
|
|
|
| |
Consumer Durables (0.5%) |
|
|
| ||
42,100 |
| Activision, Inc. (3) |
| 1,434,347 |
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer Non-Durables (7.6%) |
|
|
| ||
97,000 |
| Coca-Cola Co. |
| 5,042,060 |
|
46,000 |
| Colgate-Palmolive Co. |
| 3,178,600 |
|
26,900 |
| NIKE, Inc. |
| 1,603,509 |
|
76,400 |
| PepsiCo, Inc. |
| 4,858,276 |
|
28,500 |
| Philip Morris International, Inc. |
| 1,407,615 |
|
74,200 |
| Procter & Gamble Co. |
| 4,512,102 |
|
17,900 |
| VF Corp. |
| 1,274,122 |
|
|
|
|
|
| |
|
|
|
| 21,876,284 |
|
|
|
|
|
| |
Consumer Services (3.2%) |
|
|
| ||
79,650 |
| Comcast Corp. |
| 1,510,961 |
|
67,800 |
| International Game Technology |
| 1,693,644 |
|
79,300 |
| McDonald’s Corp. |
| 4,458,246 |
|
92,100 |
| News Corp. |
| 1,385,184 |
|
|
|
|
|
| |
|
|
|
| 9,048,035 |
|
|
|
|
|
| |
Electronic Technology (10.3%) |
|
|
| ||
40,600 |
| Analog Devices, Inc. |
| 1,289,862 |
|
16,300 |
| Apple Computer, Inc. (3) |
| 2,729,272 |
|
147,700 |
| Applied Materials, Inc. |
| 2,819,593 |
|
33,100 |
| Broadcom Corp. (3) |
| 903,299 |
|
224,200 |
| Cisco Systems, Inc. (3) |
| 5,214,892 |
|
134,100 |
| EMC Corp. (3) |
| 1,969,929 |
|
40,000 |
| Hewlett-Packard Co. |
| 1,768,400 |
|
178,600 |
| Intel Corp. |
| 3,836,328 |
|
28,900 |
| IBM Corp. |
| 3,425,517 |
|
99,900 |
| Qualcomm, Inc. |
| 4,432,563 |
|
46,300 |
| Texas Instruments, Inc. |
| 1,303,808 |
|
|
|
|
|
| |
|
|
|
| 29,693,463 |
|
|
|
|
|
| |
Energy Minerals (9.3%) |
|
|
| ||
34,300 |
| Murphy Oil Corp. |
| 3,363,115 |
|
57,200 |
| Occidental Petroleum Corp. |
| 5,139,992 |
|
117,800 |
| Southwestern Energy Co. (3) |
| 5,608,458 |
|
23,400 |
| Suncor Energy, Inc. |
| 1,360,008 |
|
43,600 |
| Ultra Petroleum Corp. (3) |
| 4,281,520 |
|
25,700 |
| Valero Energy Corp. |
| 1,058,326 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
85,082 |
| XTO Energy, Inc. |
| 5,828,968 |
|
|
|
|
|
| |
|
|
|
| 26,640,387 |
|
|
|
|
|
| |
Finance (8.1%) |
|
|
| ||
93,000 |
| Bank of New York Mellon Corp. |
| 3,518,190 |
|
78,000 |
| Citigroup, Inc. |
| 1,307,280 |
|
5,400 |
| CME Group, Inc. |
| 2,069,226 |
|
35,200 |
| Franklin Resources, Inc. |
| 3,226,080 |
|
78,600 |
| J.P. Morgan Chase & Co. |
| 2,696,766 |
|
31,675 |
| Morgan Stanley |
| 1,142,517 |
|
19,600 |
| PartnerRe, Ltd. |
| 1,354,948 |
|
42,100 |
| Prudential Financial, Inc. |
| 2,515,054 |
|
18,400 |
| The Goldman Sachs Group, Inc. |
| 3,218,160 |
|
33,400 |
| U.S. Bancorp |
| 931,526 |
|
52,900 |
| Wells Fargo & Co. |
| 1,256,375 |
|
|
|
|
|
| |
|
|
|
| 23,236,122 |
|
|
|
|
|
| |
Health Services (2.0%) |
|
|
| ||
28,000 |
| McKesson Corp. |
| 1,565,480 |
|
67,300 |
| Medco Health Solutions, |
| 3,176,560 |
|
32,300 |
| UnitedHealth Group, Inc. |
| 847,875 |
|
|
|
|
|
| |
|
|
|
| 5,589,915 |
|
|
|
|
|
| |
Health Technology (11.7%) |
|
|
| ||
75,900 |
| Abbott Laboratories |
| 4,020,423 |
|
32,800 |
| Allergan, Inc. |
| 1,707,240 |
|
83,100 |
| Celgene Corp. (3) |
| 5,307,597 |
|
66,100 |
| Genentech, Inc. (3) |
| 5,016,990 |
|
49,900 |
| Genzyme Corp. (3) |
| 3,593,798 |
|
91,400 |
| Gilead Sciences, Inc. (3) |
| 4,839,630 |
|
21,250 |
| Johnson & Johnson |
| 1,367,225 |
|
59,900 |
| Medtronic, Inc. |
| 3,099,825 |
|
55,200 |
| Thermo Fisher Scientific, Inc. (3) |
| 3,076,296 |
|
24,500 |
| Zimmer Holdings, Inc. (3) |
| 1,667,225 |
|
|
|
|
|
| |
|
|
|
| 33,696,249 |
|
|
|
|
|
| |
Industrial Services (6.8%) |
|
|
| ||
73,000 |
| McDermott International, |
| 4,517,970 |
|
40,200 |
| National-Oilwell Varco, |
| 3,566,544 |
|
34,100 |
| Noble Corp. |
| 2,215,136 |
|
64,000 |
| Schlumberger, Ltd. |
| 6,875,520 |
|
15,700 |
| Transocean, Inc. (3) |
| 2,392,523 |
|
|
|
|
|
| |
|
|
|
| 19,567,693 |
|
|
|
|
|
| |
Non-Energy Minerals (1.4%) |
|
|
| ||
19,600 |
| Allegheny Technologies, Inc. |
| 1,161,888 |
|
25,100 |
| Freeport-McMoran Copper & Gold |
| 2,941,469 |
|
|
|
|
|
| |
|
|
|
| 4,103,357 |
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
|
| Market Value ($)(1) |
|
|
|
|
|
|
| |
Process Industries (4.4%) |
|
|
| |||
33,300 |
| Air Products and Chemicals, Inc. |
| 3,292,038 |
| |
49,700 |
| Ecolab, Inc. |
| 2,136,603 |
| |
57,100 |
| Monsanto Co. |
| 7,219,724 |
| |
|
|
|
|
| ||
|
|
|
| 12,648,365 |
| |
|
|
|
|
| ||
Producer Manufacturing (8.2%) |
|
|
| |||
132,000 |
| ABB, Ltd., A.D.R. |
| 3,738,240 |
| |
44,700 |
| Deere & Co. |
| 3,224,211 |
| |
53,000 |
| Emerson Electronic Co. |
| 2,620,850 |
| |
30,000 |
| General Dynamics Corp. |
| 2,526,000 |
| |
113,100 |
| General Electric Co. |
| 3,018,639 |
| |
20,800 |
| ITT Corp. |
| 1,317,264 |
| |
27,200 |
| Lockheed Martin Corp. |
| 2,683,552 |
| |
33,700 |
| The Boeing Co. |
| 2,214,764 |
| |
33,800 |
| United Technologies Corp. |
| 2,085,460 |
| |
|
|
|
|
| ||
|
|
|
| 23,428,980 |
| |
|
|
|
|
| ||
Retail Trade (3.1%) |
|
|
| |||
102,800 |
| CVS/Caremark Corp. |
| 4,067,796 |
| |
51,700 |
| Target Corp. |
| 2,403,533 |
| |
45,000 |
| Wal-Mart Stores, Inc. |
| 2,529,000 |
| |
|
|
|
|
| ||
|
|
|
| 9,000,329 |
| |
|
|
|
|
| ||
Technology Services (7.9%) |
|
|
| |||
73,600 |
| Accenture, Ltd. |
| 2,996,992 |
| |
64,900 |
| Adobe Systems, Inc. (3) |
| 2,556,411 |
| |
6,400 |
| Google, Inc. (3) |
| 3,369,088 |
| |
197,400 |
| Microsoft Corp. |
| 5,430,474 |
| |
161,500 |
| Oracle Corp. (3) |
| 3,391,500 |
| |
27,300 |
| SAP AG |
| 1,422,603 |
| |
45,100 |
| Visa, Inc. |
| 3,667,081 |
| |
|
|
|
|
| ||
|
|
|
| 22,834,149 |
| |
|
|
|
|
| ||
Transportation (1.7%) |
|
|
| |||
36,400 |
| Burlington Northern Sante Fe Corp. |
| 3,635,996 |
| |
21,200 |
| United Parcel Service, Inc. |
| 1,303,164 |
| |
|
|
|
|
| ||
|
|
|
| 4,939,160 |
| |
|
|
|
|
| ||
Utilities (2.0%) |
|
|
| |||
83,600 |
| Equitable Resources, Inc. |
| 5,773,416 |
| |
|
|
|
|
| ||
Total common stocks |
| 265,402,470 |
| |||
|
|
|
|
| ||
(cost: $245,414,693) |
|
|
| |||
|
|
|
|
|
| |
Short-Term Securities (9.4%) (2) |
|
|
| |||
27,146,000 |
| Sit Money Market Fund, 2.08% (4) |
| 27,146,000 |
| |
|
|
|
|
| ||
(cost: $27,146,000) |
|
|
| |||
|
|
|
|
|
| |
Total investments in securities |
|
|
| |||
(cost: $272,560,693) (5) |
| $ | 292,548,470 |
| ||
|
|
|
|
|
See accompanying notes to portfolios of investments on page 40.
23
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Matthew T. Loucks, and 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 6/30/08: |
| $14.83 Per Share |
6/30/07: |
| $15.71 Per Share |
|
|
|
Total Net Assets: |
| $210.9 Million |
| ||
Weighted Average Market Cap: |
| $14.5 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| 5.33 | % |
|
| 4.65 | % |
|
| 2.67 | % | ||
6 Month** |
|
| -7.95 |
|
|
| -6.81 |
|
|
| -7.57 |
| ||
1 Year |
|
| -2.63 |
|
|
| -6.42 |
|
|
| -11.19 |
| ||
5 Year |
|
| 13.67 |
|
|
| 12.32 |
|
|
| 13.07 |
| ||
10 Year |
|
| 4.24 |
|
|
| 5.64 |
|
|
| 8.10 |
| ||
Inception |
|
| 13.20 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| -2.63 | % |
|
| -6.42 | % |
|
| -11.19 | % | ||
5 Year |
|
| 89.80 |
|
|
| 78.77 |
|
|
| 84.81 |
| ||
10 Year |
|
| 51.49 |
|
|
| 73.10 |
|
|
| 117.93 |
| ||
Inception |
|
| 2364.37 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 6/30/08 | **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 6/30/98 and held until 6/30/08 would have grown to $15,149 in the Fund or $17,310 in the Russell Midcap® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Southwestern Energy Co. |
| 2. | Celgene Corp. |
| 3. | McDermott Intl, Inc. |
| 4. | Activision, Inc. |
| 5. | XTO Energy, Inc. |
| 6. | CF Industries Holdings, Inc. |
| 7. | Jacobs Engineering Group, Inc. |
| 8. | Airgas, Inc. |
| 9. | Gilead Sciences, Inc. |
| 10. | Murphy Oil Corp. |
|
| Total Number of Holdings: 86 |
25
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (98.0%) (2) |
|
|
| ||
| |||||
Communications (2.2%) |
|
|
| ||
83,200 |
| American Tower Corp. (3) |
| 3,515,200 |
|
22,900 |
| NII Holdings, Inc. (3) |
| 1,087,521 |
|
|
|
|
|
| |
|
|
|
| 4,602,721 |
|
|
|
|
|
| |
Consumer Durables (3.1%) |
|
|
| ||
144,800 |
| Activision, Inc. (3) |
| 4,933,336 |
|
34,800 |
| Electronic Arts Inc. (3) |
| 1,546,164 |
|
|
|
|
|
| |
|
|
|
| 6,479,500 |
|
|
|
|
|
| |
Consumer Non-Durables (1.4%) |
|
|
| ||
15,800 |
| Central European Distribution |
| 1,171,570 |
|
59,800 |
| Coach, Inc. (3) |
| 1,727,024 |
|
|
|
|
|
| |
|
|
|
| 2,898,594 |
|
|
|
|
|
| |
Consumer Services (3.4%) |
|
|
| ||
23,200 |
| Central European Media |
| 2,100,296 |
|
11,000 |
| Devry, Inc. |
| 589,820 |
|
81,000 |
| International Game Technology |
| 2,023,380 |
|
16,300 |
| ITT Educational Services, Inc. (3) |
| 1,346,869 |
|
39,900 |
| Marriott International, Inc. |
| 1,046,976 |
|
|
|
|
|
| |
|
|
|
| 7,107,341 |
|
|
|
|
|
| |
Electronic Technology (8.3%) |
|
|
| ||
76,450 |
| Analog Devices, Inc. |
| 2,428,817 |
|
9,000 |
| Apple Computer, Inc. (3) |
| 1,506,960 |
|
68,675 |
| Broadcom Corp. (3) |
| 1,874,141 |
|
80,700 |
| Juniper Networks, Inc. (3) |
| 1,789,926 |
|
34,100 |
| KLA-Tencor Corp. |
| 1,388,211 |
|
61,000 |
| MEMC Electronic Materials, |
| 3,753,940 |
|
63,500 |
| NetApp, Inc. (3) |
| 1,375,410 |
|
11,000 |
| Research In Motion Ltd. (3) |
| 1,285,900 |
|
52,900 |
| Trimble Navigation, Ltd. (3) |
| 1,888,530 |
|
29,100 |
| VeriFone Holdings, Inc. (3) |
| 347,745 |
|
|
|
|
|
| |
|
|
|
| 17,639,580 |
|
|
|
|
|
| |
Energy Minerals (10.6%) |
|
|
| ||
24,700 |
| Apache Corp. |
| 3,433,300 |
|
54,700 |
| Frontier Oil Corp. |
| 1,307,877 |
|
35,800 |
| Holly Corp. |
| 1,321,736 |
|
40,000 |
| Murphy Oil Corp. |
| 3,922,000 |
|
158,600 |
| Southwestern Energy Corp. (3) |
| 7,550,946 |
|
71,595 |
| XTO Energy, Inc. |
| 4,904,973 |
|
|
|
|
|
| |
|
|
|
| 22,440,832 |
|
|
|
|
|
| |
Finance (7.5%) |
|
|
| ||
51,050 |
| Ace, Ltd. |
| 2,812,345 |
|
35,000 |
| Affiliated Managers Group, |
| 3,152,100 |
|
15,600 |
| IntercontinentalExchange, |
| 1,778,400 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
| |||||
32,000 |
| Northern Trust Corp. |
| 2,194,240 |
|
54,500 |
| T. Rowe Price Group Inc. |
| 3,077,615 |
|
228,800 |
| TCF Financial Corp. |
| 2,752,464 |
|
|
|
|
|
| |
|
|
|
| 15,767,164 |
|
|
|
|
|
| |
Health Services (3.9%) |
|
|
| ||
13,500 |
| Covance, Inc. (3) |
| 1,161,270 |
|
32,100 |
| Express Scripts, Inc. (3) |
| 2,013,312 |
|
30,200 |
| Laboratory Corp. (3) |
| 2,102,826 |
|
56,000 |
| Stericycle, Inc. (3) |
| 2,895,200 |
|
|
|
|
|
| |
|
|
|
| 8,172,608 |
|
|
|
|
|
| |
Health Technology (15.1%) |
|
|
| ||
16,700 |
| Alcon, Inc. |
| 2,718,593 |
|
46,600 |
| Allergan, Inc. |
| 2,425,530 |
|
50,600 |
| Amylin Pharmaceuticals, Inc. (3) |
| 1,284,734 |
|
106,400 |
| Celgene Corp. (3) |
| 6,795,768 |
|
74,900 |
| Gilead Sciences, Inc. (3) |
| 3,965,955 |
|
37,300 |
| Idexx Laboratories, Inc. (3) |
| 1,818,002 |
|
12,546 |
| Intuitive Surgical, Inc. (3) |
| 3,379,892 |
|
31,000 |
| Millipore Corp. (3) |
| 2,103,660 |
|
55,488 |
| NuVasive, Inc. (3) |
| 2,478,094 |
|
37,700 |
| SurModics, Inc. (3) |
| 1,690,468 |
|
56,450 |
| Thermo Fisher Scientific Inc. (3) |
| 3,145,959 |
|
|
|
|
|
| |
|
|
|
| 31,806,655 |
|
|
|
|
|
| |
Industrial Services (9.7%) |
|
|
| ||
43,400 |
| Aecom Technology Corp. (3) |
| 1,411,802 |
|
108,700 |
| Flotek Industries, Inc. (3) |
| 2,241,394 |
|
107,700 |
| McDermott International, Inc. (3) |
| 6,665,553 |
|
30,400 |
| National-Oilwell Varco, Inc. (3) |
| 2,697,088 |
|
54,800 |
| Noble Corp. |
| 3,559,808 |
|
46,000 |
| Smith International, Inc. |
| 3,824,440 |
|
|
|
|
|
| |
|
|
|
| 20,400,085 |
|
|
|
|
|
| |
Non-Energy Minerals (1.5%) |
|
|
| ||
26,750 |
| Allegheny Technologies, Inc. |
| 1,585,740 |
|
43,500 |
| RTI International Metals, Inc. (3) |
| 1,549,470 |
|
|
|
|
|
| |
|
|
|
| 3,135,210 |
|
|
|
|
|
| |
Process Industries (6.5%) |
|
|
| ||
68,900 |
| Airgas, Inc. |
| 4,023,071 |
|
70,800 |
| Albemarle Corp. |
| 2,825,628 |
|
30,500 |
| CF Industries Holdings, Inc. |
| 4,660,400 |
|
50,500 |
| Ecolab, Inc. |
| 2,170,995 |
|
|
|
|
|
| |
|
|
|
| 13,680,094 |
|
|
|
|
|
| |
Producer Manufacturing (10.9%) |
|
|
| ||
19,600 |
| AGCO Corp. (3) |
| 1,027,236 |
|
59,950 |
| AMETEK, Inc. |
| 2,830,839 |
|
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
| |
43,000 |
| Cummins, Inc. |
|
| 2,817,360 |
|
47,300 |
| IDEX Corp. |
|
| 1,742,532 |
|
42,000 |
| ITT Industries, Inc. |
|
| 2,659,860 |
|
55,100 |
| Jacobs Engineering Group, Inc. (3) |
|
| 4,446,570 |
|
35,100 |
| Precision Castparts Corp. |
|
| 3,382,587 |
|
31,900 |
| Rockwell Collins, Inc. |
|
| 1,529,924 |
|
54,600 |
| Textron, Inc. |
|
| 2,616,978 |
|
|
|
|
|
| ||
|
|
|
|
| 23,053,886 |
|
|
|
|
|
| ||
Retail Trade (3.2%) |
|
|
|
| ||
84,800 |
| Dick’s Sporting Goods, Inc. (3) |
|
| 1,504,352 |
|
69,700 |
| GameStop Corp. (3) |
|
| 2,815,880 |
|
37,700 |
| J.C. Penney Company, Inc. |
|
| 1,368,133 |
|
38,700 |
| Nordstrom, Inc. |
|
| 1,172,610 |
|
|
|
|
|
| ||
|
|
|
|
| 6,860,975 |
|
|
|
|
|
| ||
Technology Services (7.9%) |
|
|
|
| ||
88,190 |
| Adobe Systems, Inc. (3) |
|
| 3,473,804 |
|
33,850 |
| Akamai Technologies, Inc. (3) |
|
| 1,177,641 |
|
71,600 |
| Amdocs, Ltd. (3) |
|
| 2,106,472 |
|
30,500 |
| ANSYS, Inc. (3) |
|
| 1,437,160 |
|
53,800 |
| Autodesk, Inc. (3) |
|
| 1,818,978 |
|
200 |
| Baidu.com, Inc. (3) |
|
| 62,592 |
|
91,900 |
| Citrix Systems, Inc. (3) |
|
| 2,702,779 |
|
106,800 |
| Cognizant Tech. Solutions Corp. (3) |
|
| 3,472,068 |
|
29,300 |
| ValueClick, Inc. (3) |
|
| 443,895 |
|
|
|
|
|
| ||
|
|
|
|
| 16,695,389 |
|
|
|
|
|
| ||
Transportation (2.1%) |
|
|
|
| ||
43,900 |
| C.H. Robinson Worldwide, Inc. |
|
| 2,407,476 |
|
46,700 |
| Expeditors Intl. of Washington, Inc. |
|
| 2,008,100 |
|
|
|
|
|
| ||
|
|
|
|
| 4,415,576 |
|
|
|
|
|
| ||
Utilities (0.7%) |
|
|
|
| ||
20,600 |
| Equitable Resources, Inc. |
|
| 1,422,636 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
Total common stocks |
|
| 206,578,846 |
| ||
|
|
|
|
| ||
(cost: $156,148,450) |
|
|
|
| ||
|
|
|
|
|
|
|
Short-Term Securities (2.2%) (2) |
|
|
|
| ||
4,577,000 |
| Sit Money Market Fund, 2.08% (4) |
|
| 4,577,000 |
|
|
|
|
|
| ||
(cost: $4,577,000) |
|
|
|
| ||
|
|
|
|
|
|
|
Total investments in securities |
| $ | 211,155,846 |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
|
|
|
See accompanying notes to portfolios of investments on page 40. |
|
| 27 |
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Janet K. Kinzler, and Tasha M. Murdoff |
|
|
|
|
|
|
|
|
The Sit International Growth Fund declined -3.82% for the last fiscal year, outperforming the MSCI EAFE Growth Index which returned - -4.44%. While the absolute performance was negative, positive relative performance was driven by the Fund’s stock selection in material and industrial holdings along with the overweight in the energy sector. Meanwhile the overweight in the financial sector and stock selection in the utilities sector had a negative impact. On a regional basis, Asia was the largest contributor due to stock selection, while Europe detracted — a result of poor stock selection and the negative currency impact.
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/08: |
| $17.80 Per Share |
6/30/07: |
| $18.70 Per Share |
|
|
|
Total Net Assets: |
| $37.7 Million |
|
|
|
Weighted Average Market Cap: |
| $59.5 Billion |
|
|
|
|
PORTFOLIO STRUCTURE - BY REGION |
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
3 Month** |
|
| 2.01 | % |
|
| 0.02 | % |
|
| -2.25 | % |
| ||
6 Month** |
|
| -8.15 |
|
|
| -8.14 |
|
|
| -10.96 |
|
| ||
1 Year |
|
| -3.82 |
|
|
| -4.44 |
|
|
| -10.61 |
|
| ||
5 Year |
|
| 14.43 |
|
|
| 16.26 |
|
|
| 16.67 |
|
| ||
10 Year |
|
| 1.12 |
|
|
| 4.11 |
|
|
| 5.83 |
|
| ||
Inception |
|
| 5.69 |
|
|
| 5.21 |
|
|
| 6.99 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CUMULATIVE TOTAL RETURNS* | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
| ||||||||||||||
1 Year |
|
| -3.82 | % |
|
| -4.44 | % |
|
| -10.61 | % |
| ||
5 Year |
|
| 96.20 |
|
|
| 112.35 |
|
|
| 116.15 |
|
| ||
10 Year |
|
| 11.74 |
|
|
| 49.61 |
|
|
| 76.25 |
|
| ||
Inception |
|
| 151.71 |
|
|
| 133.29 |
|
|
| 208.53 |
|
| ||
(11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 6/30/08. | **Not annualized. |
| |||||||||||||
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance. |
|
|
(1) | MSCI uses a two dimensional framework for style segmentation in which value and growth securities are categorized using a multi-factor approach. The objective of the Index design is to divide constituents of an underlying MSCI Equity Index into respective value and growth indices, each targeting 50% of the free float adjusted market capitalization of the underlying market index. |
(2) | The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US and Canada. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/98 and held until 6/30/08 would have grown to $11,174 in the Fund or $14,961 in the MSCI EAFE Growth Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
29
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
| |||||
| |||||||
1. |
| BHP Billiton, Ltd. | |||||
2. |
| Rio Tinto, A.D.R. | |||||
3. |
| Vestas Wind Systems A/S | |||||
4. |
| Schlumberger, Ltd. | |||||
5. |
| Agrium, Inc. | |||||
6. |
| Veolia Environment | |||||
7. |
| Tenaris S.A., A.D.R. | |||||
8. |
| Nestle, S.A. | |||||
9. |
| Telefonica, S.A. | |||||
10. |
| Total, S.A. | |||||
|
| Total Number of Holdings: 94 | |||||
| |||||||
|
|
|
|
|
|
| ||
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |||
| |||||||
Common Stocks (96.2%) (2) |
|
|
| ||||
Africa/ Middle East (1.0%) |
|
|
| ||||
Israel (1.0%) |
|
|
| ||||
12,400 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 364,808 |
| ||
|
|
|
|
| |||
Asia (33.0%) |
|
|
| ||||
Australia (10.7%) |
|
|
| ||||
11,514 |
| Australia and New Zealand Banking Group (Finance) |
| 206,630 |
| ||
47,051 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 1,971,114 |
| ||
3,800 |
| Rio Tinto, A.D.R. (Non-Energy Minerals) |
| 1,881,000 |
| ||
|
|
|
|
| |||
|
|
|
| 4,058,744 |
| ||
|
|
|
|
| |||
Hong Kong / China (5.1%) |
|
|
| ||||
5,800 |
| China Mobile, Ltd., A.D.R. (Communications) |
| 388,310 |
| ||
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 278,992 |
| ||
2,528 |
| HSBC Holdings, p.l.c. (Finance) |
| 39,062 |
| ||
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 288,402 |
| ||
222,000 |
| Petrochina (Energy Minerals) |
| 287,563 |
| ||
31,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 428,777 |
| ||
5,200 |
| Suntech Power Holdings Co. (Elec. Tech.) (3) |
| 194,792 |
| ||
|
|
|
|
| |||
|
|
|
| 1,905,898 |
| ||
|
|
| |||||
India * (0.4%) |
|
|
| ||||
5,100 |
| ICICI Bank Ltd. (Finance) |
| 146,676 |
| ||
|
|
|
|
| |||
Japan (16.2%) |
|
|
| ||||
5,300 |
| AFLAC, Inc., A.D.R. (Finance) |
| 332,840 |
| ||
20,500 |
| Asahi Breweries (Consumer Non-Durables) |
| 382,643 |
| ||
10,500 |
| Canon, Inc. (Electronic Tech.) |
| 539,907 |
| ||
54 |
| East Japan Railway (Transportation) |
| 439,893 |
| ||
5,900 |
| FANUC LTD. (Producer Mfg.) |
| 576,192 |
| ||
11,200 |
| Honda Motor Co., Ltd. |
| 380,769 |
| ||
14,200 |
| Ito En, Ltd. (Consumer Non Durables) |
| 223,595 |
| ||
4,200 |
| Ito En, Ltd. (Pfd.) (Consumer Non Durables) |
| 44,696 |
| ||
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 288,506 |
| ||
46 |
| KDDI Corp. (Communications) |
| 284,183 |
|
|
|
|
|
|
| ||
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |||
| |||||||
13,000 |
| Kirin Holdings Company, Ltd. (Consumer Non-Durables) |
| 202,985 |
| ||
7,000 |
| Millea Holdings, Inc. (Finance) |
| 272,920 |
| ||
27,980 |
| Mitsubishi UFJ Financial Group, Inc. (Finance) |
| 247,956 |
| ||
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 227,979 |
| ||
600 |
| Nintendo Co., Ltd. (Consumer Durables) |
| 338,466 |
| ||
34,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 228,300 |
| ||
3,600 |
| Sony Corp. (Consumer Durables) |
| 157,464 |
| ||
42 |
| Sumitomo Mitsui Financial Group, Inc. (Finance) |
| 316,033 |
| ||
5,200 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 264,444 |
| ||
5,200 |
| Yamada Denki Co. (Retail Trade) |
| 370,222 |
| ||
|
|
|
|
| |||
|
|
|
| 6,119,993 |
| ||
|
|
|
|
| |||
South Korea (0.6%) |
|
|
| ||||
750 |
| Samsung Electronics Co., G.D.R. (Electronic Tech.) |
| 224,057 |
| ||
|
|
|
|
| |||
Europe (53.3%) |
|
|
| ||||
Austria (0.7%) |
|
|
| ||||
2,171 |
| Raiffeisen Intl. Bank Holding A.G. (Finance) |
| 277,440 |
| ||
|
|
|
|
| |||
Czech Republic (1.3%) |
|
|
| ||||
5,600 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 506,968 |
| ||
|
|
|
|
| |||
Denmark (3.9%) |
|
|
| ||||
3,300 |
| Genmab A/S (Health Technology) (3) |
| 126,103 |
| ||
10,200 |
| Vestas Wind Systems A/S (Process Industries) (3) |
| 1,335,135 |
| ||
|
|
|
|
| |||
|
|
|
| 1,461,238 |
| ||
|
|
|
|
| |||
Finland (0.8%) |
|
|
| ||||
11,550 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 282,975 |
| ||
|
|
|
|
| |||
France (8.7%) |
|
|
| ||||
8,060 |
| AXA (Finance) |
| 239,336 |
| ||
2,510 |
| BNP Paribas (Finance) |
| 227,391 |
| ||
4,784 |
| Danone (Consumer Non-Durables) |
| 335,936 |
| ||
10,600 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 1,138,758 |
| ||
6,884 |
| Total, S.A. (Energy Minerals) |
| 587,450 |
| ||
13,085 |
| Veolia Environment (Utilities) |
| 734,055 |
| ||
|
|
|
|
| |||
|
|
|
| 3,262,926 |
| ||
|
|
|
|
| |||
Germany (7.2%) |
|
|
| ||||
1,850 |
| Allianz SE (Finance) |
| 325,936 |
| ||
5,250 |
| Fresenius AG (Health Tech.) |
| 453,550 |
| ||
2,487 |
| Muenchener Rueckver (Finance) |
| 435,658 |
| ||
1,485 |
| Puma AG (Consumer Durables) |
| 498,382 |
| ||
10,892 |
| SAP AG (Tech. Services) |
| 570,375 |
| ||
3,896 |
| Siemens AG (Producer Mfg.) |
| 432,575 |
| ||
|
|
|
|
| |||
|
|
|
| 2,716,476 |
| ||
|
|
|
|
|
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |||
| |||||||
Ireland (0.6%) |
|
|
| ||||
21,920 |
| Anglo Irish Bank Corp. (Finance) (3) |
| 208,798 |
| ||
|
|
|
|
| |||
Italy (1.5%) |
|
|
| ||||
25,350 |
| Azimut Holdings SpA (Finance) (3) |
| 223,310 |
| ||
36,400 |
| Enel S.P.A. (Utilities) (3) |
| 346,154 |
| ||
|
|
|
|
| |||
|
|
|
| 569,464 |
| ||
|
|
|
|
| |||
Netherlands (3.2%) |
|
|
| ||||
7,500 |
| ASML Holding N.V. (Electronic Technology) |
| 183,000 |
| ||
7,700 |
| CNH Global N.V. (Producer Manufacturing) |
| 261,569 |
| ||
2,300 |
| Core Laboratories N.V. (Industrial Svcs.) (3) |
| 327,405 |
| ||
6,496 |
| ING Groep N.V. (Finance) |
| 207,161 |
| ||
7,180 |
| Philips Electronics N.V. (Consumer Durables) |
| 244,292 |
| ||
|
|
|
|
| |||
|
|
|
| 1,223,427 |
| ||
|
|
|
|
| |||
Norway (1.5%) |
|
|
| ||||
11,100 |
| Telenor ASA (Communications) (3) |
| 208,784 |
| ||
6,400 |
| Telenor, A.D.R. (Communications) |
| 359,040 |
| ||
|
|
|
|
| |||
|
|
|
| 567,824 |
| ||
|
|
|
|
| |||
Poland (0.6%) |
|
|
| ||||
2,800 |
| Central European Distribution Corp. (Consumer Non-Durables) (3) |
| 207,620 |
| ||
|
|
|
|
| |||
Spain (2.0%) |
|
|
| ||||
7,600 |
| Banco Bilbao Vizcaya, S.A. (Finance) |
| 144,172 |
| ||
22,675 |
| Telefonica, S.A. (Communications) |
| 602,629 |
| ||
|
|
|
|
| |||
|
|
|
| 746,801 |
| ||
|
|
|
|
| |||
Sweden (0.7%) |
|
|
| ||||
27,000 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 280,800 |
| ||
|
|
|
|
| |||
Switzerland (12.0%) |
|
|
| ||||
18,700 |
| ABB, Ltd., A.D.R. (Producer Manufacturing) |
| 529,584 |
| ||
3,325 |
| Credit Suisse Group (Finance) |
| 152,653 |
| ||
5,755 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 546,740 |
| ||
15,630 |
| Nestle, S.A. (Consumer Non-Durables) |
| 706,261 |
| ||
7,600 |
| Novartis, A.G. (Health Tech.) |
| 418,482 |
| ||
2,146 |
| Panalpina Welttransport Holding (Transportation) (3) |
| 228,349 |
| ||
3,045 |
| Roche Holdings, A.G. (Health Tech.) |
| 548,461 |
| ||
5,100 |
| Swiss Reinsurance (Finance) |
| 339,734 |
| ||
1,760 |
| Syngenta, A.G. (Process Industries) |
| 572,424 |
| ||
3,620 |
| Synthes, Inc. (Health Tech.) (3) |
| 498,944 |
| ||
|
|
|
|
| |||
|
|
|
| 4,541,632 |
| ||
|
|
|
|
| |||
United Kingdom (8.6%) |
|
|
| ||||
43,910 |
| BAE Systems p.l.c. (Producer Manufacturing) |
| 387,017 |
| ||
35,800 |
| Burberry Group, p.l.c. (Retail Trade) |
| 323,023 |
| ||
2,500 |
| Diageo, p.l.c. (Consumer Non-Durables) |
| 184,675 |
| ||
7,100 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 313,962 |
| ||
19,100 |
| Pearson plc (Consumer Services) |
| 233,975 |
| ||
9,835 |
| Reckitt Benckiser, p.l.c. (Consumer Non-Durables) |
| 498,557 |
| ||
28,281 |
| Royal Bank of Scotland (Finance) |
| 121,112 |
|
|
|
|
|
|
| ||
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |||
| |||||||
68,390 |
| Tesco, p.l.c. (Retail Trade) |
| 503,066 |
| ||
184,359 |
| Vodafone Group, p.l.c. (Communications) |
| 547,697 |
| ||
15,354 |
| WPP Group p.l.c. (Consumer Svcs.) |
| 148,096 |
| ||
|
|
|
|
| |||
|
|
|
| 3,261,180 |
| ||
|
|
|
|
| |||
Latin America (4.1%) |
|
|
| ||||
Argentina (2.0%) |
|
|
| ||||
9,850 |
| Tenaris S.A., A.D.R. (Industrial Services) |
| 733,825 |
| ||
|
|
|
|
| |||
| |||||||
Brazil (0.5%) |
|
|
| ||||
5,300 |
| Companhia Vale do Rio Doce, A.D.R. (Non-Energy Minerals) |
| 189,846 |
| ||
|
|
|
|
| |||
| |||||||
Mexico (1.6%) |
|
|
| ||||
5,700 |
| NII Holdings, Inc. (Communications) (3) |
| 270,693 |
| ||
88,260 |
| Wal-Mart de Mexico (Retail Trade) |
| 351,308 |
| ||
|
|
|
|
| |||
|
|
|
| 622,001 |
| ||
|
|
|
|
| |||
North America (4.8%) |
|
|
| ||||
Canada (4.2%) |
|
|
| ||||
9,300 |
| Agrium, Inc. (Process Industries) |
| 1,000,122 |
| ||
4,900 |
| Research In Motion, Ltd. (Electronic Tech.) (3) |
| 572,810 |
| ||
|
|
|
|
| |||
|
|
|
| 1,572,932 |
| ||
|
|
|
|
| |||
United States (0.6%) |
|
|
| ||||
10,200 |
| News Corp., Ltd., A.D.R. (Consumer Svcs.) |
| 153,408 |
| ||
5,529 |
| VeriFone Holdings, Inc. (Commercial Svcs.) (3) |
| 66,072 |
| ||
|
|
|
|
| |||
|
|
|
| 219,480 |
| ||
|
|
|
|
| |||
Total common stocks |
|
|
| ||||
(cost: $25,373,137) |
| 36,273,829 |
| ||||
|
|
| |||||
|
|
|
| ||||
Closed-End Mutual Fund (0.8%) (2) |
|
|
| ||||
8,500 |
| India Fund* (Consumer Svcs.) |
| 300,730 |
| ||
|
|
|
|
| |||
(cost: $215,143) |
|
|
| ||||
|
|
|
|
|
| ||
Short Term Securities (2.8%) (2) |
|
|
| ||||
1,062,000 |
| Sit Money Market Fund, 2.08% (4) |
| 1,062,000 |
| ||
|
|
|
|
| |||
(cost: $1,062,000) |
|
|
| ||||
|
|
|
|
|
| ||
Total investments in securities |
|
|
| ||||
(cost: $26,650,280) (5) |
| $ 37,636,559 |
| ||||
|
|
|
* The Fund’s total investment in India including the India Fund comprises 1.2% of the fund’s net assets.
See accompanying notes to portfolios of investments on page 40.
31
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Robert W. Sit, Matthew T. Loucks, and Michael J. Stellmacher | |||
|
|
|
|
|
The Sit Small Cap Growth Fund returned -6.73% over the past twelve months. This compares to the -10.83% return for the Russell® 2000 Growth Index and the -16.19% return for the Russell® 2000 Index during the period.
The market correction took its toll on small capitalization issues during the quarter, as investors were forced to cope with a host of economic uncertainties. While it is difficult to predict confidently when a market rebound will occur, equity valuations are more attractive following the recent correction, and we believe there are still many growth companies that will continue to post solid earnings growth even in tougher economic conditions. For example, we believe technology spending growth will remain positive in 2008, which is in sharp contrast to the collapse that took place during the 2001-2002 downturn. It is important to note that, unlike the last technology downturn, business spending on technology has grown at only a modest pace over the past few years. There is simply no “bubble” in spending to reverse this time around, and corporations continue to strive to improve productivity through technology spending. Technology valuations and balance sheets are also attractive. Therefore, the Fund maintains a significant weight in the technology-related sectors, but remains well-diversified — reflecting our belief that there are growth opportunities in many sectors.
Relative to the Russell 2000 Growth Index, the Fund’s strong relative performance was driven by stock selection in many sectors, including health technology (Intuitive Surgical, +94% over the twelve-month period and Nuvasive, +65%) and technology services (Ansys, +78%). Conversely, the Fund’s performance was hurt by its holdings within the finance and process industries sectors. In terms of individual stocks, the poorest performers included Boston Private Financial (-78%), National Financial Partners (-56%) and RTI International Metals (-53%).
We realize that market corrections are always difficult for investors. However, we would also like to assure you that our research effort is highly focused on companies with strong, experienced management teams, sound balance sheets and sustainable earnings growth potential. In this regard, we believe that the companies held in the Fund will reward your patience in the eventual upward move in the equity market.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The Adviser invests in a diversified group of growing small companies it believes exhibit the potential for superior growth. The Adviser believes that a company’s earnings growth is the primary determinant of its potential long-term return and evaluates a company’s potential for above average long-term earnings and revenue growth.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/08: |
| $37.44 Per Share |
6/30/07: |
| $40.14 Per Share |
|
|
|
Total Net Assets: |
| $93.5 Million |
|
|
|
Weighted Average Market Cap: |
| $3.9 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
|
| ||||||
|
|
| Sit Small |
| Russell |
| Russell | |||||||
| 3 Month** |
| 7.87 | % |
| 4.47 | % |
| 0.58 | % | ||||
| 6 Month** |
| -9.13 |
|
| -8.93 |
|
| -9.37 |
| ||||
| 1 Year |
| -6.73 |
|
| -10.83 |
|
| -16.19 |
| ||||
| 5 Year |
| 11.59 |
|
| 10.37 |
|
| 10.29 |
| ||||
| 10 Year |
| 8.52 |
|
| 2.80 |
|
| 5.53 |
| ||||
| Inception |
| 12.28 |
|
| 6.71 |
|
| 9.22 |
| ||||
| (7/1/94) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
| |||||||
|
|
| Sit Small |
| Russell |
| Russell | |||||||
| 1 Year |
| -6.73 | % |
| -10.83 | % |
| -16.19 | % | ||||
| 5 Year |
| 73.01 |
|
| 63.75 |
|
| 63.19 |
| ||||
| 10 Year |
| 126.62 |
|
| 31.80 |
|
| 71.22 |
| ||||
| Inception |
| 406.43 |
|
| 148.47 |
|
| 244.12 |
| ||||
| (7/1/94) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/08. | **Not annualized. | |||||||||||||
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains. Management fees and administrative expenses are included in the Fund’s performance.
|
|
| |
(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 6/30/98 and held until 6/30/08 would have grown to $22,662 in the Fund or $13,180 in the Russell 2000® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
1. |
| Southwestern Energy Co. |
2. |
| Arena Resources, Inc. |
3. |
| ANSYS, Inc. |
4. |
| SBA Communications Corp. |
5. |
| CommScope Inc. |
6. |
| NuVasive, Inc. |
7. |
| Core Laboratories |
8. |
| Celgene Corp. |
9. |
| Lufkin Industries, Inc. |
10. |
| Equitable Resources, Inc. |
|
| Total Number of Holdings: 96 |
33
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (97.9%) (2) |
|
|
| ||
Commercial Services (1.5%) |
|
|
| ||
15,100 |
| FactSet Research Systems, Inc. |
| 851,036 |
|
15,900 |
| Getty Images, Inc. (3) |
| 539,487 |
|
|
|
|
|
| |
|
|
|
| 1,390,523 |
|
|
|
|
|
| |
Communications (4.5%) |
|
|
| ||
53,987 |
| Centennial Communications Corp. (3) |
| 377,369 |
|
10,000 |
| NII Holdings, Inc. (3) |
| 474,900 |
|
66,750 |
| SBA Communications |
| 2,403,667 |
|
62,900 |
| Time Warner Telecom, |
| 1,008,287 |
|
|
|
|
|
| |
|
|
|
| 4,264,223 |
|
|
|
|
|
| |
Consumer Non-Durables (2.1%) |
|
|
| ||
14,000 |
| Central European Distribution Corp. (3) |
| 1,038,100 |
|
33,800 |
| Hansen Natural Corp. (3) |
| 974,116 |
|
|
|
|
|
| |
|
|
|
| 2,012,216 |
|
|
|
|
|
| |
Consumer Services (2.7%) |
|
|
| ||
8,275 |
| Capella Education Co. (3) |
| 493,604 |
|
17,000 |
| DeVry, Inc. |
| 911,540 |
|
20,700 |
| Life Time Fitness, Inc. (3) |
| 611,685 |
|
2,400 |
| Strayer Education, Inc. |
| 501,768 |
|
|
|
|
|
| |
|
|
|
| 2,518,597 |
|
|
|
|
|
| |
Electronic Technology (11.5%) |
|
|
| ||
49,900 |
| Arris Group, Inc. (3) |
| 421,655 |
|
17,900 |
| Ciena Corp. (3) |
| 414,743 |
|
44,600 |
| CommScope, Inc. (3) |
| 2,353,542 |
|
35,100 |
| Intersil Corp. |
| 853,632 |
|
59,400 |
| Microsemi Corp. (3) |
| 1,495,692 |
|
37,500 |
| MICROS Systems, Inc. (3) |
| 1,143,375 |
|
42,600 |
| Radyne Corp. (3) |
| 486,918 |
|
28,000 |
| Silicon Laboratories, Inc. (3) |
| 1,010,520 |
|
15,750 |
| Silicon Motion Technology |
| 227,587 |
|
112,850 |
| Sonus Networks, Inc. (3) |
| 385,947 |
|
30,300 |
| Trimble Navigation, Ltd. (3) |
| 1,081,710 |
|
25,200 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
| 877,464 |
|
|
|
|
|
| |
|
|
|
| 10,752,785 |
|
|
|
|
|
| |
Energy Minerals (8.7%) |
|
|
| ||
50,200 |
| Arena Resources, Inc. (3) |
| 2,651,564 |
|
121,300 |
| Cano Petroleum, Inc. (3) |
| 963,122 |
|
57,900 |
| Frontier Oil Corp. |
| 1,384,389 |
|
65,400 |
| Southwestern Energy |
| 3,113,694 |
|
|
|
|
|
| |
|
|
|
| 8,112,769 |
|
|
|
|
|
| |
Finance (6.9%) |
|
|
| ||
16,975 |
| Affiliated Managers Group, Inc. (3) |
| 1,528,769 |
|
42,100 |
| Aspen Insurance Holdings, Ltd. |
| 996,507 |
|
47,000 |
| Boston Private Financial Holdings, Inc. |
| 266,490 |
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
13,200 |
| FCStone Group, Inc. (3) |
| 368,676 |
27,500 |
| Hanover Insurance Group, Inc |
| 1,168,750 |
7,800 |
| Mercury General Corp. |
| 364,416 |
26,300 |
| National Financial Partners Corp. |
| 521,266 |
104,600 |
| TCF Financial Corp. |
| 1,258,338 |
|
|
|
| |
|
|
|
| 6,473,212 |
|
|
|
| |
Health Services (5.3%) |
|
| ||
28,200 |
| Allscripts Healthcare Solutions, Inc. (3) |
| 349,962 |
10,400 |
| Covance, Inc. (3) |
| 894,608 |
11,300 |
| Healthways, Inc. (3) |
| 334,480 |
7,100 |
| Pharmaceutical Product Development, Inc. |
| 304,590 |
30,500 |
| Psychiatric Solutions, Inc. (3) |
| 1,154,120 |
21,800 |
| Stericycle, Inc. (3) |
| 1,127,060 |
28,200 |
| VCA Antech, Inc. (3) |
| 783,396 |
|
|
|
| |
|
|
|
| 4,948,216 |
|
|
|
| |
Health Technology (17.4%) |
|
| ||
6,800 |
| Alexion Pharmaceuticals, |
| 493,000 |
56,400 |
| Amylin Pharmaceuticals, |
| 1,431,996 |
13,700 |
| BioMarin Pharmaceutical, |
| 397,026 |
29,800 |
| Celgene Corp. (3) |
| 1,903,326 |
57,010 |
| CryoLife, Inc. (3) |
| 652,194 |
41,900 |
| ev3, Inc. (3) |
| 397,212 |
16,300 |
| Gen-Probe, Inc. (3) |
| 773,924 |
26,700 |
| Hansen Medical, Inc. (3) |
| 446,424 |
38,600 |
| Hologic, Inc. (3) |
| 841,480 |
12,100 |
| ICON, A.D.R. (3) |
| 913,792 |
5,500 |
| Intuitive Surgical, Inc. (3) |
| 1,481,700 |
49,600 |
| NuVasive, Inc. (3) |
| 2,215,136 |
49,600 |
| PerkinElmer, Inc. |
| 1,381,360 |
39,600 |
| The Spectranetics Corp. (3) |
| 390,456 |
24,196 |
| SurModics, Inc. (3) |
| 1,084,949 |
6,400 |
| Techne Corp. (3) |
| 495,296 |
23,800 |
| Thoratec Corp. (3) |
| 413,882 |
5,300 |
| United Therapeutics Corp. (3) |
| 518,075 |
|
|
|
| |
|
|
|
| 16,231,228 |
|
|
|
| |
Industrial Services (9.7%) |
|
| ||
9,000 |
| Atwood Oceanics, Inc. (3) |
| 1,119,060 |
20,700 |
| Chicago Bridge & Iron Co. |
| 824,274 |
13,400 |
| Core Laboratories (3) |
| 1,907,490 |
49,800 |
| Flotek Industries, Inc. (3) |
| 1,026,876 |
21,300 |
| Lufkin Industries, Inc. |
| 1,773,864 |
19,200 |
| McDermott International, |
| 1,188,288 |
29,700 |
| URS Corp. (3) |
| 1,246,509 |
|
|
|
| |
|
|
|
| 9,086,361 |
|
|
|
|
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Non-Energy Minerals (1.5%) |
|
|
| ||
8,500 |
| Haynes International, |
| 489,175 |
|
25,200 |
| RTI International Metals, |
| 897,624 |
|
|
|
|
|
| |
|
|
|
| 1,386,799 |
|
|
|
|
|
| |
Process Industries (1.8%) |
|
|
| ||
31,979 |
| Darling International, Inc. (3) |
| 528,293 |
|
58,900 |
| Landec Corp. (3) |
| 381,083 |
|
30,600 |
| Zoltek Companies, Inc. (3) |
| 742,050 |
|
|
|
|
|
| |
|
|
|
| 1,651,426 |
|
|
|
|
|
| |
Producer Manufacturing (10.1%) |
|
|
| ||
33,925 |
| AMETEK, Inc. |
| 1,601,939 |
|
20,800 |
| Ampco-Pittsburgh Corp. |
| 925,184 |
|
11,800 |
| Anixter International, |
| 701,982 |
|
23,700 |
| IDEX Corp. |
| 873,108 |
|
29,850 |
| Kaydon Corp. |
| 1,534,589 |
|
31,386 |
| Rofin-Sinar Technologies, Inc. (3) |
| 947,857 |
|
11,600 |
| Roper Industries, Inc. |
| 764,208 |
|
19,000 |
| Teledyne Technologies, |
| 927,010 |
|
33,500 |
| Woodward Governor Co. |
| 1,194,610 |
|
|
|
|
|
| |
|
|
|
| 9,470,487 |
|
|
|
|
|
| |
Retail Trade (1.9%) |
|
|
| ||
18,200 |
| Dicks Sporting Goods, |
| 322,868 |
|
36,500 |
| GameStop Corp. (3) |
| 1,474,600 |
|
|
|
|
|
| |
|
|
|
| 1,797,468 |
|
|
|
|
|
| |
Technology Services (9.7%) |
|
|
| ||
55,500 |
| ANSYS, Inc. (3) |
| 2,615,160 |
|
47,700 |
| Citrix Systems, Inc. (3) |
| 1,402,857 |
|
23,000 |
| Concur Technologies, Inc. |
| 764,290 |
|
96,450 |
| Informatica Corp. (3) |
| 1,450,608 |
|
17,800 |
| j2 Global Communications, Inc. (3) |
| 409,400 |
|
38,800 |
| Quest Software, Inc. (3) |
| 574,628 |
|
15,600 |
| Syntel, Inc. |
| 526,032 |
|
30,200 |
| The Ultimate Software Group, Inc. (3) |
| 1,076,026 |
|
18,200 |
| ValueClick, Inc. (3) |
| 275,730 |
|
|
|
|
|
| |
|
|
|
| 9,094,731 |
|
|
|
|
|
| |
Transportation (0.8%) |
|
|
| ||
36,200 |
| UTI Worldwide, Inc. |
| 722,190 |
|
|
|
|
|
| |
|
|
|
|
|
|
Utilities (1.8%) |
|
|
| ||
23,700 |
| Equitable Resources, Inc. |
| 1,636,722 |
|
|
|
|
|
| |
|
|
|
| ||
Total common stocks |
| 91,549,953 |
| ||
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
Short-Term Securities (2.1%) (2) |
|
| ||
1,999,000 |
| Sit Money Market Fund, |
| 1,999,000 |
|
|
|
| |
(cost: $1,999,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
| $ 93,548,953 | ||
|
|
|
|
See accompanying notes to portfolios of investments on page 40.
35
|
|
|
|
|
|
|
|
| |
| One Year Ended June 30, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit and Raymond E. Sit |
|
|
|
|
|
|
|
|
The Sit Developing Markets Growth Fund outperformed the MSCI Emerging Markets Index, appreciating +5.26% for the latest fiscal year versus +2.59%. The outperformance is attributable to positive stock selection and allocation on both a regional and sector basis. The commodity-exposed holdings such as energy and materials stocks were positive contributors along with the underweight in the financial sector. This strong performance was partially offset by the Fund’s investments in Latin America.
The Fund remains heavily exposed to Asia, as growth, albeit slower than the past several years, remains strong relative to other regions. The Fund has a 61.3% weight, which is well above the Index at 48.6%. The Fund’s exposure comes from consumer-related, commodity-related, technology, financial, and telecommunication holdings.
The Fund continues to have a large absolute weight in Latin America at 23.1% versus the Index at 25.5%. Given our positive outlook for commodity-related stocks, the Fund’s exposure to these investments remains large. In addition, a strong economy bodes well for the consumer, therefore we also have exposure to retail and telecommunication stocks.
The Fund’s exposure to Eastern European stocks increased to 9.0%, albeit still underweight the Index at 15.6%. The Eastern European investments are centered on consumer, agriculture, energy, and telecommunication stocks.
The Fund continues to be underweight in the Middle East and Africa region at 5.1% versus the Index at 10.3%. This underweight is largely a function of our more bullish outlook for the Asia region. In Africa and the Middle East, the Fund’s investments consist of consumer, technology, pharmaceutical, and energy 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 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 Adviser seeks industries and sectors that appear to have strong earnings growth prospects. Within the selected industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 6/30/08: |
| $25.97 Per Share |
6/30/0712/31/07: |
| $24.94 Per Share |
|
|
|
Total Net Assets: |
| $23.2 Million |
|
|
|
Weighted Average Market Cap: |
| $57.5 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
|
| ||||||
|
|
| Sit |
| MSCI |
| MSCI | |||||||
| 3 Month** |
| 2.53 | % |
| -1.58 | % |
| -2.12 | % | ||||
| 6 Month** |
| -11.24 |
|
| -12.72 |
|
| -14.66 |
| ||||
| 1 Year |
| 5.26 |
|
| 2.59 |
|
| -0.48 |
| ||||
| 5 Year |
| 26.77 |
|
| 26.72 |
|
| 25.20 |
| ||||
| 10 Year |
| 11.38 |
|
| 12.64 |
|
| 11.77 |
| ||||
| Inception |
| 7.29 |
|
| 6.02 |
|
| n/a |
| ||||
| (7/1/94) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
| |||||||
|
|
| Sit |
| MSCI |
| MSCI | |||||||
| 1 Year |
| 5.26 | % |
| 2.59 | % |
| -0.48 | % | ||||
| 5 Year |
| 227.45 |
|
| 226.77 |
|
| 207.68 |
| ||||
| 10 Year |
| 193.84 |
|
| 228.91 |
|
| 204.22 |
| ||||
| Inception |
| 167.88 |
|
| 126.87 |
|
| n/a |
| ||||
| (7/1/94) |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
*As of 6/30/08 | **Not annualized. | |||||||||||||
|
|
|
|
(1) | MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. |
(2) | MSCI uses a two-dimensional framework for style segmentation in which value and growth securities are categorized using a multi-factor approach. The objective of the index design is to divide constituents of an underlying MSCI Equity Index into respective value and growth indices, each targeting 50% of the free float-adjusted market capitalization of the underlying market index. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 6/30/98 and held until 6/30/08 would have increased to $29,384 in the Fund, or $32,891 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
37
|
|
|
|
|
| Sit Developing Markets Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - June 30, 2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
|
1. |
| Petrobras |
2. |
| Gazprom, A.D.R. |
3. |
| Cia Vale Do Rio Doce, A.D.R. |
4. |
| BHP Billiton, Ltd., A.D.R. |
5. |
| Samsung Electronics |
6. |
| Tenaris, A.D.R. |
7. |
| Rio Tinto |
8. |
| China Mobile, Ltd. |
9. |
| America Movil, A.D.R. |
10. |
| Uralkali, G.D.R. |
|
| Total Number of Holdings: 91 |
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
Common Stocks (98.0%) (2) |
|
|
| ||
Africa/ Middle East (5.1%) |
|
|
| ||
Israel (3.3%) |
|
|
| ||
9,900 |
| Amdocs, Ltd. (Technology Svcs.) (3) |
| 291,258 |
|
7,100 |
| NICE Systems Ltd., A.D.R. (Electronic Tech.) (3) |
| 209,947 |
|
5,700 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) |
| 261,060 |
|
|
|
|
|
| |
|
|
|
| 762,265 |
|
|
|
|
|
| |
South Africa (1.8%) |
|
|
| ||
8,247 |
| Bidvest Group, Ltd. (Consumer Services) |
| 103,621 |
|
6,900 |
| Naspers, Ltd. (Consumer Services) |
| 150,690 |
|
3,000 |
| Sasol, A.D.R. (Energy Minerals) |
| 176,820 |
|
|
|
|
|
| |
|
|
|
| 431,131 |
|
|
|
|
|
| |
Asia (60.6%) |
|
|
| ||
Australia (8.1%) |
|
|
| ||
9,000 |
| BHP Billiton, Ltd., A.D.R. |
|
|
|
|
| (Non-Energy Minerals) |
| 766,710 |
|
4,700 |
| Rio Tinto (Non-Energy Minerals) |
| 610,518 |
|
1,000 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) |
| 495,000 |
|
|
|
|
|
| |
|
|
|
| 1,872,228 |
|
|
|
|
|
| |
China / Hong Kong (20.1%) |
|
| |||
186,000 |
| Ajisen China Holdings, Ltd. |
|
|
|
|
| (Consumer Services) (3) |
| 185,350 |
|
240,000 |
| China Communications Construction. Co. |
| 410,606 |
|
5,333 |
| China Life Insurance Co., A.D.R. (Utilities) |
| 278,276 |
|
8,200 |
| China Mobile, Ltd. (Communications) |
| 548,990 |
|
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) |
| 427,330 |
|
23,000 |
| China Shenhua Energy Co. (Energy Minerals) |
| 90,263 |
|
660,000 |
| China Water Affairs Group (Utilities) (3) |
| 194,684 |
|
18,200 |
| ChinaEdu Corp., A.D.R. (Consumer Svcs.) (3) |
| 86,450 |
|
4,000 |
| Focus Media Holding, Ltd., A.D.R. (Commercial Services) (3) |
| 110,880 |
|
3,700 |
| Home Inns & Hotels Mgmt., Inc., A.D.R. (Consumer Services) (3) |
| 70,337 |
|
|
|
|
|
|
|
Quantity | Name of Issuer | Market Value ($)(1) |
| ||
| |||||
6,000 |
| Hong Kong Exchanges & Clearing (Finance) |
| 87,723 |
|
45,000 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 190,800 |
|
135,000 |
| Huabao International Holdings, Ltd. |
| 128,122 |
|
28,000 |
| Li & Fung, Ltd. (Consumer Durables) |
| 84,389 |
|
77,500 |
| NetDragon Websoft, Inc. (Tech. Services) |
| 102,376 |
|
3,500 |
| New Oriental Education & Technology Group, A.D.R. (Consumer Svcs.) (3) | 204,470 |
| |
180,000 |
| PetroChina Co. (Energy Minerals) |
| 233,159 |
|
95,308 |
| Ports Design, Ltd. (Retail Trade) |
| 272,579 |
|
12,000 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 162,827 |
|
9,400 |
| Suntech Power Holdings Co., Ltd., A.D.R. (Electronic Technology) (3) |
| 352,124 |
|
158,000 |
| Travelsky Technology, Ltd. (Consumer Svcs.) |
| 103,952 |
|
96,000 |
| Tsingtao Brewery Co., Ltd. (Consumer Non-Durables) |
| 195,515 |
|
86,000 |
| Xinao Gas Holdings, Ltd. (Utlities) |
| 147,575 |
|
|
|
|
|
| |
|
|
|
| 4,668,777 |
|
|
|
|
|
| |
India * (3.4%) |
|
|
| ||
5,500 |
| ICICI Bank, A.D.R. (Finance) |
| 158,180 |
|
4,600 |
| Infosys Technologies, Ltd., A.D.R. (Technology Svcs.) |
| 199,916 |
|
4,300 |
| Reliance Industries, Ltd., G.D.R. (Energy Minerals) |
| 418,786 |
|
|
|
|
|
| |
|
|
|
| 776,882 |
|
|
|
|
|
| |
Indonesia (1.0%) |
|
|
| ||
54,500 |
| PT Astra International (Producer Mfg.) |
| 113,788 |
|
3,400 |
| PT Telekomunikasi, A.D.R. (Communications) |
| 109,650 |
|
|
|
|
|
| |
|
|
|
| 223,438 |
|
|
|
|
|
| |
Phillipines (2.1%) |
|
|
| ||
826,500 |
| Manila Water Co. (Utilities) |
| 335,976 |
|
486,000 |
| SM Prime Holdings, Inc. (Retail Trade) |
| 75,777 |
|
107,000 |
| Union Bank of Philippines (Finance) |
| 77,458 |
|
|
|
|
|
| |
|
|
|
| 489,211 |
|
|
|
|
|
| |
Russia (10.3%) |
|
|
| ||
15,050 |
| Gazprom, A.D.R. (Energy Minerals) |
| 872,900 |
|
1,500 |
| Gazprom, A.D.R. (Energy Minerals) |
| 86,850 |
|
3,000 |
| Mobile Telesystems, A.D.R. (Communications) |
| 229,830 |
|
2,700 |
| LUKOIL, A.D.R. (Energy Minerals) |
| 265,140 |
|
7,200 |
| Uralkali, G.D.R. (Process Industries) (3) |
| 523,440 |
|
14,000 |
| Vimpel Communications, A.D.R. |
| 415,520 |
|
|
|
|
|
| |
|
|
|
| 2,393,680 |
|
|
|
|
|
| |
Singapore (1.1%) |
|
|
| ||
51,600 |
| KS Energy Services, Ltd. (Energy Minerals) |
| 71,680 |
|
85,650 |
| Starhub, Ltd. (Communications) |
| 179,415 |
|
|
|
|
|
| |
|
|
|
| 251,095 |
|
|
|
|
|
|
38
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Quantity | Name of Issuer | Market Value ($)(1) |
| |||
| ||||||
South Korea (9.3%) |
|
|
| |||
725 |
| Cheil Communications, Inc. |
| 171,885 |
| |
9,007 |
| Industrial Bank of Korea (Finance) |
| 137,337 |
| |
7,200 |
| Korea Electric Power Corp. (Utilities) |
| 104,616 |
| |
2,200 |
| Kookmin Bank (Finance) |
| 129,975 |
| |
1,900 |
| Kookmin Bank, A.D.R. (Finance) |
| 111,169 |
| |
2,800 |
| POSCO, A.D.R. (Non-Energy Minerals) |
| 363,384 |
| |
1,080 |
| Samsung Electronics (Electronic Tech.) |
| 645,285 |
| |
5,600 |
| Shinhan Financial Group (Finance) |
| 253,219 |
| |
310 |
| Shinsegae Co., Ltd. (Retail Trade) |
| 166,847 |
| |
3,100 |
| SK Telecom Co., A.D.R. (Communications) |
| 64,387 |
| |
|
|
|
|
| ||
|
|
|
| 2,148,104 |
| |
|
|
|
|
| ||
Taiwan (4.6%) |
|
|
| |||
79,777 |
| Cathay Financial Holding Co., Ltd. (Finance) |
| 173,468 |
| |
5,000 |
| High Tech Computer Corp. |
| 112,015 |
| |
31,525 |
| Hon Hai Precision Industry Co., Ltd. G.D.R. |
| 313,360 |
| |
12,960 |
| Hon Hai Precision Industry Co., Ltd. |
| 63,833 |
| |
111,362 |
| Taiwan Semiconductor Co. (Electronic Tech.) |
| 238,478 |
| |
16,034 |
| Taiwan Semiconductor Manufacturing |
| 174,936 |
| |
|
|
|
|
| ||
|
|
|
| 1,076,090 |
| |
|
|
|
|
| ||
Thailand (0.6%) |
|
|
| |||
42,000 |
| Bangkok Bank Public Co., Ltd. (Finance) |
| 150,740 |
| |
|
|
|
|
| ||
| ||||||
Europe (9.0%) |
|
|
| |||
Austria (1.6%) |
|
|
| |||
2,900 |
| Raiffeisen Intl. Bank Hldg. AG (Finance) |
| 370,616 |
| |
|
|
|
|
| ||
| ||||||
Czech Republic (3.5%) |
|
|
| |||
4,000 |
| Central European Media Enterprises, Ltd. |
| 362,120 |
| |
5,200 |
| CEZ (Utilities) |
| 461,374 |
| |
|
|
|
|
| ||
|
|
|
| 823,494 |
| |
|
|
|
|
| ||
Poland (1.7%) |
|
|
| |||
5,200 |
| Central European Distribution Corp. (3) (Consumer Non-Durables) |
| 385,580 |
| |
|
|
|
|
| ||
| ||||||
Turkey (0.6%) |
|
|
| |||
5,900 |
| Tupras-Turkiye Petrol Rafinerileri A.S. |
| 136,206 |
| |
|
|
|
|
| ||
| ||||||
United Kingdom (1.6%) |
|
|
| |||
5,232 |
| Anglo American p.l.c. (Non-Energy Minerals) |
| 367,454 |
| |
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
| |||||
Latin America (23.1%) |
|
|
| ||
Argentina (2.7%) |
|
|
| ||
8,550 |
| Tenaris, A.D.R. (Industrial |
| 636,975 |
|
|
|
|
| ||
Brazil (12.7%) |
|
|
| ||
19,200 |
| AES Tiete S.A. (Utilities) |
| 198,815 |
|
15,080 |
| Banco Bradesco S.A. (Finance) |
| 306,841 |
|
2,100 |
| Companhia Brasileira de Distribuicao Grupo |
| 89,166 |
|
3,600 |
| Companhia de Bebidas das Americas (Consumer Non-Durables) |
| 228,060 |
|
22,300 |
| Companhia Vale do Rio Doce, A.D.R. (Non-Energy Minerals) |
| 798,786 |
|
3,883 |
| Embraer de Aeronautica, A.D.R. |
| 102,899 |
|
34,680 |
| Petrobras (Energy Minerals) |
| 999,881 |
|
3,000 |
| Petrobras, A.D.R. (Energy Minerals) |
| 212,490 |
|
|
|
|
| ||
|
|
|
| 2,936,938 |
|
|
|
|
| ||
Mexico (6.4%) |
|
|
| ||
10,000 |
| America Movil, A.D.R. (Communications) |
| 527,500 |
|
6,400 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) |
| 151,168 |
|
4,200 |
| Homex, A.D.R. (Consumer Durables) (3) |
| 246,036 |
|
3,400 |
| NII Holdings, Inc. (Communications) (3) |
| 161,466 |
|
2,800 |
| Telefonos de Mexico, A.D.R. |
| 66,304 |
|
2,800 |
| Telmex Internacional, A.D.R. |
| 45,080 |
|
72,540 |
| Wal-Mart de Mexico (Retail Trade) |
| 288,736 |
|
|
|
|
| ||
|
|
|
| 1,486,290 |
|
|
|
|
| ||
Peru (1.3%) |
|
|
| ||
2,800 |
| Southern Copper Corp. |
| 298,564 |
|
|
|
|
| ||
North America (0.2%) |
|
|
| ||
United States (0.2%) |
|
|
| ||
4,661 |
| VeriFone Holdings, Inc. |
| 55,699 |
|
|
|
|
| ||
| |||||
Total common stocks |
| 22,741,457 |
| ||
|
|
|
| ||
(cost: $13,191,406) |
|
|
| ||
Closed-End Mutual Fund (0.7%) (2) |
|
|
| ||
4,900 |
| India Fund* (Consumer |
| 173,362 |
|
|
|
|
| ||
(cost: $115,283) |
|
|
| ||
Short-Term Securities (2.4%) (2) |
|
|
| ||
556,000 |
| Sit Money Market |
| 556,000 |
|
|
|
|
| ||
(cost: $556,000) |
|
|
| ||
Total investments in securities |
|
|
| ||
(cost: $13,862,689) (5) | $ | 23,470,819 |
| ||
|
|
|
|
|
|
| * The Fund’s total investment in India including the India Fund comprises 4.1% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 40.
39
|
|
|
|
|
| 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, 2008, the cost of securities for federal income tax purposes and the aggregate gross unrealized appreciation and depreciation based on that cost were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend Growth |
| Large Cap |
| Mid Cap |
| ||||
|
|
|
|
|
| ||||||||
Cost for federal income tax purposes |
| $ | 11,713,369 |
| $ | 54,141,754 |
| $ | 272,598,695 |
| $ | 160,809,070 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 2,141,784 |
| $ | 5,082,031 |
| $ | 35,467,494 |
| $ | 65,819,903 |
|
Gross unrealized depreciation |
|
| (965,058 | ) |
| (3,462,218 | ) |
| (15,517,719 | ) |
| (15,473,127 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 1,176,726 |
| $ | 1,619,813 |
| $ | 19,949,775 |
| $ | 50,346,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International |
| Small Cap |
| Developing |
| |||
|
|
|
|
| ||||||
Cost for federal income tax purposes |
| $ | 26,653,116 |
| $ | 77,466,697 |
| $ | 13,862,689 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 12,644,240 |
| $ | 25,706,237 |
| $ | 10,513,189 |
|
Gross unrealized depreciation |
|
| (1,660,797 | ) |
| (9,623,981 | ) |
| (905,059 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| $ | 10,983,443 |
| $ | 16,082,256 |
| $ | 9,608,130 |
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
41
|
|
|
|
|
| Sit Mutual Funds |
|
| |
| June 30, 2008 |
|
| |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| |||
|
|
|
|
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 11,705,595 |
| $ | 54,076,982 |
| $ | 272,560,693 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 12,563,095 |
| $ | 54,751,567 |
| $ | 265,402,470 |
|
Investments in affiliated mutual funds |
|
| 327,000 |
|
| 1,010,000 |
|
| 27,146,000 |
|
Cash in bank on demand deposit |
|
| 2,560 |
|
| 190 |
|
| 51 |
|
Accrued interest and dividends receivable |
|
| 64,478 |
|
| 87,243 |
|
| 245,235 |
|
Receivable for investment securities sold |
|
| — |
|
| 729,729 |
|
| — |
|
Other receivables |
|
| 194 |
|
| 5,788 |
|
| 16,136 |
|
Receivable for Fund shares sold |
|
| — |
|
| 2,500 |
|
| 586,526 |
|
|
|
|
|
| ||||||
| ||||||||||
Total assets |
|
| 12,957,327 |
|
| 56,587,017 |
|
| 293,396,418 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| 355,064 |
|
| 4,630,673 |
|
Payable for Fund shares redeemed |
|
| — |
|
| 641,322 |
|
| 820,163 |
|
Other payables |
|
| 6,882 |
|
| 3,229 |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 11,040 |
|
| 47,846 |
|
| 250,123 |
|
|
|
|
|
| ||||||
Total liabilities |
|
| 17,922 |
|
| 1,047,461 |
|
| 5,700,959 |
|
|
|
|
|
| ||||||
| ||||||||||
Net assets applicable to outstanding capital stock |
| $ | 12,939,405 |
| $ | 55,539,556 |
| $ | 287,695,459 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 15,717,065 |
| $ | 52,240,007 |
| $ | 280,770,707 |
|
Undistributed (distributions in excess of) net investment income |
|
| 97,265 |
|
| 265,719 |
|
| 572,524 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,059,425 | ) |
| 1,349,245 |
|
| (13,635,549 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 1,184,500 |
|
| 1,684,585 |
|
| 19,987,777 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 12,939,405 |
| $ | 55,539,556 |
| $ | 287,695,459 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 793,071 |
|
| 3,145,444 |
|
| 6,626,764 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| 1,093,101 |
|
| — |
|
|
|
|
|
| ||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
| $ | 12,939,405 |
| $ | 41,239,368 |
| $ | 287,695,459 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| 14,300,188 |
|
| — |
|
|
|
|
|
| ||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
| $ | 16.32 |
| $ | 13.11 |
| $ | 43.41 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
| $ | 13.08 |
|
| — |
|
|
|
|
|
|
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap |
| International |
| Small Cap |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 160,725,450 |
| $ | 26,650,280 |
| $ | 77,466,697 |
| $ | 13,862,689 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value - see accompanying schedules for detail |
| $ | 206,578,846 |
| $ | 36,574,559 |
| $ | 91,549,953 |
| $ | 22,914,819 |
|
Investments in affiliated mutual funds |
|
| 4,577,000 |
|
| 1,062,000 |
|
| 1,999,000 |
|
| 556,000 |
|
Cash in bank on demand deposit |
|
| 926 |
|
| 186 |
|
| 195 |
|
| 1,293 |
|
Accrued interest and dividends receivable |
|
| 116,085 |
|
| 157,435 |
|
| 15,721 |
|
| 70,551 |
|
Receivable for investment securities sold |
|
| — |
|
| — |
|
| 528,996 |
|
| — |
|
Other receivables |
|
| — |
|
| — |
|
| 51,713 |
|
| 6,887 |
|
Receivable for Fund shares sold |
|
| 26,943 |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| |||||||||||||
Total assets |
|
| 211,299,800 |
|
| 37,794,180 |
|
| 94,145,578 |
|
| 23,549,550 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| — |
|
| — |
|
| 494,705 |
|
| — |
|
Payable for Fund shares redeemed |
|
| 48,991 |
|
| — |
|
| 3,496 |
|
| 313,989 |
|
Other payables |
|
| 154,879 |
|
| 27,406 |
|
| — |
|
| — |
|
Accrued investment management and advisory services fee |
|
| 216,345 |
|
| 52,672 |
|
| 120,714 |
|
| 40,486 |
|
|
|
|
|
|
| ||||||||
Total liabilities |
|
| 420,215 |
|
| 80,078 |
|
| 618,915 |
|
| 354,475 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 210,879,585 |
| $ | 37,714,102 |
| $ | 93,526,663 |
| $ | 23,195,075 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 164,771,511 |
| $ | 55,881,839 |
| $ | 106,413,154 |
| $ | 12,983,910 |
|
Undistributed (distributions in excess of) net investment income |
|
| — |
|
| 308,462 |
|
| — |
|
| (593 | ) |
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,322,322 | ) |
| (29,465,047 | ) |
| (28,968,747 | ) |
| 602,946 |
|
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| 50,430,396 |
|
| 10,988,848 |
|
| 16,082,256 |
|
| 9,608,812 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
|
| $ | 210,879,585 |
| $ | 37,714,102 |
| $ | 93,526,663 |
| $ | 23,195,075 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 14,215,579 |
|
| 2,118,603 |
|
| 2,497,949 |
|
| 893,274 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
| $ | 210,879,585 |
| $ | 37,714,102 |
| $ | 93,526,663 |
| $ | 23,195,075 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
| $ | 14.83 |
| $ | 17.80 |
| $ | 37.44 |
| $ | 25.97 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 50.
43
|
|
|
|
|
| Sit Mutual Funds |
|
| |
| One Year Ended June 30, 2008 |
|
| |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Large Cap |
| |||
|
|
|
|
| ||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 125,147 |
| $ | 1,205,590 |
| $ | 2,329,359 |
|
Interest |
|
| 293,999 |
|
| 64,977 |
|
| 737,411 |
|
|
|
|
|
| ||||||
Total income |
|
| 419,146 |
|
| 1,270,567 |
|
| 3,066,770 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 130,588 |
|
| 473,658 |
|
| 2,100,816 |
|
12b-1 Fee - Class S |
|
| — |
|
| 17,218 |
|
| — |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
| 130,588 |
|
| 490,876 |
|
| 2,100,816 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 130,588 |
|
| 490,876 |
|
| 2,100,816 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 288,558 |
|
| 779,691 |
|
| 965,954 |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 455,191 |
|
| 2,153,005 |
|
| 1,347,416 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (988,060 | ) |
| (4,651,033 | ) |
| (7,165,526 | ) |
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| (532,869 | ) |
| (2,498,028 | ) |
| (5,818,110 | ) |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 244,311 | ) | ($ | 1,718,337 | ) | ($ | 4,852,156 | ) |
|
|
|
|
|
* Dividends are net of foreign withholding tax of $67,577 and $31,513 in the International Growth Fund and Developing Markets Growth Fund, respectively.
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap |
| International |
| Small Cap |
| Developing |
| ||||
|
|
|
|
|
| ||||||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 1,026,387 |
| $ | 723,263 |
| $ | 301,442 |
| $ | 363,579 |
|
Interest |
|
| 588,114 |
|
| 173,569 |
|
| 285,113 |
|
| 48,845 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 1,614,501 |
|
| 896,832 |
|
| 586,555 |
|
| 412,424 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory services fee |
|
| 2,746,150 |
|
| 726,891 |
|
| 1,543,702 |
|
| 477,135 |
|
12b-1 Fee - Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
| 2,746,150 |
|
| 726,891 |
|
| 1,543,702 |
|
| 477,135 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less fees and expenses absorbed by investment adviser |
|
| (219,586 | ) |
| (137,520 | ) |
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 2,526,564 |
|
| 589,371 |
|
| 1,543,702 |
|
| 477,135 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| (912,063 | ) |
| 307,461 |
|
| (957,147 | ) |
| (64,711 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| 12,282,658 |
|
| 1,973,380 |
|
| 8,104,312 |
|
| 602,948 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (14,977,322 | ) |
| (3,774,119 | ) |
| (14,446,734 | ) |
| (138,363 | ) |
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| 1,001 |
|
| — |
|
| (106 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| (2,694,664 | ) |
| (1,799,738 | ) |
| (6,342,422 | ) |
| 464,479 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 3,606,727 | ) | ($ | 1,492,277 | ) | ($ | 7,299,569 | ) | $ | 399,768 |
|
|
|
|
|
|
|
See accompanying notes to financial statements on page 50.
45
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced Fund |
| Dividend Growth Fund |
| ||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 288,558 |
| $ | 257,732 |
| $ | 779,691 |
| $ | 572,161 |
|
Net realized gain (loss) on investments |
|
| 455,191 |
|
| 445,217 |
|
| 2,153,005 |
|
| 1 ,542,542 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (988,060 | ) |
| 919,520 |
|
| (4,651,033 | ) |
| 3,970,722 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| (244,311 | ) |
| 1,622,469 |
|
| (1,718,337 | ) |
| 6,085,425 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (249,989 | ) |
| (256,000 | ) |
| (606,444 | ) |
| (496,446 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| (74,556 | ) |
| (22,553 | ) |
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| (1,924,515 | ) |
| (421,852 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| (191,378 | ) |
| (39,234 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
| (249,989 | ) |
| (256,000 | ) |
| (2,796,893 | ) |
| (980,085 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 1,745,748 |
|
| 1,206,652 |
|
| 8,740,816 |
|
| 12,068,364 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| 13,936,094 |
|
| 2,731,531 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 248,615 |
|
| 254,122 |
|
| 2,462,870 |
|
| 881,856 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| 265,215 |
|
| 61,758 |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (1,089,997 | ) |
| (1,914,798 | ) |
| (3,780,160 | ) |
| (4,265,483 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| (2,066,712 | ) |
| (272,215 | ) |
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital shares transactions |
|
| 904,366 |
|
| (454,024 | ) |
| 19,558,123 |
|
| 11,205,811 |
|
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| 410,066 |
|
| 912,445 |
|
| 15,042,893 |
|
| 16,311,151 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 12,529,339 |
|
| 11,616,894 |
|
| 40,496,663 |
|
| 24,185,512 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 12,939,405 |
| $ | 12,529,339 |
| $ | 55,539,556 |
|
| 40,496,663 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 102,081 |
|
| 77,470 |
|
| 623,487 |
|
| 896,432 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| 1,030,568 |
|
| 207,573 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 14,590 |
|
| 16,162 |
|
| 177,524 |
|
| 67,065 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| 19,253 |
|
| 4,634 |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (63,511 | ) |
| (120,814 | ) |
| (269,004 | ) |
| (318,156 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| (152,868 | ) |
| (20,003 | ) |
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| 53,160 |
|
| (27,182 | ) |
| 1,428,960 |
|
| 837,545 |
|
|
|
|
|
|
| ||||||||
* includes undistributed net investment income |
| $ | 97,265 |
| $ | 58,696 |
| $ | 265,719 |
| $ | 167,028 |
|
46
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap Growth Fund |
| Mid Cap Growth Fund |
| ||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 965,954 |
| $ | 643,746 | ( | $ | 912,063 | ) ( | $ | 595,978 | ) |
Net realized gain (loss) on investments |
|
| 1,347,416 |
|
| 4,367,479 |
|
| 12,282,658 |
|
| 23,747,656 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (7,165,526 | ) |
| 12,770,846 |
|
| (14,977,322 | ) |
| 13,441,236 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| (4,852,156 | ) |
| 17,782,071 |
|
| (3,606,727 | ) |
| 36,592,914 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (640,031 | ) |
| (730,000 | ) |
| — |
|
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| (7,135,630 | ) |
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total distributions |
|
| (640,031 | ) |
| (730,000 | ) |
| (7,135,630 | ) |
| — |
|
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 208,273,800 |
|
| 32,745,007 |
|
| 22,370,170 |
|
| 6,847,730 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| 14,051,322 |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 631,433 |
|
| 717,055 |
|
| 6,945,803 |
|
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (41,459,014 | ) |
| (26,645,574 | ) |
| (27,001,040 | ) |
| (29,726,106 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital shares transactions |
|
| 167,446,219 |
|
| 6,816,488 |
|
| 16,366,255 |
|
| (22,878,376 | ) |
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| 161,954,032 |
|
| 23,868,559 |
|
| 5,623,898 |
|
| 13,714,538 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 125,741,427 |
|
| 101,872,868 |
|
| 205,255,687 |
|
| 191,541,149 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 287,695,459 |
| $ | 125,741,427 |
| $ | 210,879,585 |
| $ | 205,255,687 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 4,684,727 |
|
| 803,378 |
|
| 1,632,769 |
|
| 485,169 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| 809,357 |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 14,028 |
|
| 17,541 |
|
| 441,003 |
|
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (930,264 | ) |
| (672,308 | ) |
| (1,734,089 | ) |
| (2,144,755 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| 3,768,491 |
|
| 148,611 |
|
| 1,149,040 |
|
| (1,659,586 | ) |
|
|
|
|
|
| ||||||||
* includes undistributed net investment income |
| $ | 572,524 |
| $ | 246,601 |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
| International Growth Fund |
| ||||
|
| Year ended |
| Year ended |
| ||
|
|
|
| ||||
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 307,461 |
| $ | 433,345 |
|
Net realized gain (loss) on investments |
|
| 1,973,380 |
|
| 1,628,649 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (3,774,119 | ) |
| 5,245,252 |
|
Net realized gain (loss) on foreign currency transactions |
|
| 1,001 |
|
| (1,238 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
|
| (1,492,277 | ) |
| 7,306,008 |
|
|
|
|
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (408,875 | ) |
| (326,000 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
|
|
|
| ||||
| |||||||
Total distributions |
|
| (408,875 | ) |
| (326,000 | ) |
|
|
|
| ||||
Capital share transactions: |
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 3,309,438 |
|
| 2,625,666 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 400,670 |
|
| 315,077 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (3,606,064 | ) |
| (5,109,084 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
|
|
|
| ||||
Increase (decrease) in net assets from capital shares transactions |
|
| 104,044 |
|
| (2,168,341 | ) |
|
|
|
| ||||
Total increase (decrease) in net assets |
|
| (1,797,108 | ) |
| 4,811,667 |
|
Net assets |
|
|
|
|
|
|
|
Beginning of period |
|
| 39,511,210 |
|
| 34,699,543 |
|
|
|
|
| ||||
End of period * |
| $ | 37,714,102 |
| $ | 39,511,210 |
|
|
|
|
| ||||
Capital transactions in shares: |
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 174,630 |
|
| 155,761 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 21,392 |
|
| 18,755 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (190,170 | ) |
| (303,041 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
|
|
|
| ||||
Net increase (decrease) |
|
| 5,852 |
|
| (128,525 | ) |
|
|
|
| ||||
* includes undistributed net investment income |
| $ | 307,461 |
| $ | 408,875 |
|
|
|
See accompanying notes to financial statements on page 50. |
47
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Statements of Changes in Net Assets (continued) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Small Cap Growth Fund |
| Developing Markets Growth Fund |
| ||||||||
|
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| ||||
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| ($ | 957,147 | ) | ($ | 793,277 | ) | ($ | 64,711 | ) | $ | 37,371 |
|
Net realized gain (loss) on investments |
|
| 8,104,312 |
|
| 7,930,349 |
|
| 602,948 |
|
| 1,134,284 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (14,446,734 | ) |
| 10,914,243 |
|
| (138,363 | ) |
| 4,423,542 |
|
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| (106 | ) |
| (486 | ) |
|
|
|
|
|
| ||||||||
Net increase (decrease) in net assets resulting from operations |
|
| (7,299,569 | ) |
| 18,051,315 |
|
| 399,768 |
|
| 5,594,711 |
|
|
|
|
|
|
| ||||||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| (35,294 | ) |
| (35,000 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| (241,893 | ) |
| — |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Total distributions |
|
| — |
|
| — |
|
| (277,187 | ) |
| (35,000 | ) |
|
|
|
|
|
| ||||||||
Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 11,785,566 |
|
| 4,871,110 |
|
| 12,009,397 |
|
| 4,178,847 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| 269,654 |
|
| 34,063 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (16,759,064 | ) |
| (24,099,642 | ) |
| (7,637,020 | ) |
| (4,399,434 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Increase (decrease) in net assets from capital shares transactions |
|
| (4,973,498 | ) |
| (19,228,532 | ) |
| 4,642,031 |
|
| (186,524 | ) |
|
|
|
|
|
| ||||||||
Total increase (decrease) in net assets |
|
| (12,273,067 | ) |
| (1,177,217 | ) |
| 4,764,612 |
|
| 5,373,187 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 105,799,730 |
|
| 106,976,947 |
|
| 18,430,463 |
|
| 13,057,276 |
|
|
|
|
|
|
| ||||||||
End of period * |
| $ | 93,526,663 |
| $ | 105,799,730 |
| $ | 23,195,075 |
| $ | 18,430,463 |
|
|
|
|
|
|
| ||||||||
Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| 292,167 |
|
| 140,033 |
|
| 430,789 |
|
| 199,647 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| — |
|
| — |
|
| 9,562 |
|
| 1,642 |
|
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I Dividend Growth) |
|
| (429,997 | ) |
| (701,012 | ) |
| (286,042 | ) |
| (213,628 | ) |
Common Shares (Class S Dividend Growth) |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Net increase (decrease) |
|
| (137,830 | ) |
| (560,979 | ) |
| 154,309 |
|
| (12,339 | ) |
|
|
|
|
|
| ||||||||
* includes undistributed net investment income |
| $ | — |
| $ | — |
| $ | — |
| $ | 35,154 |
|
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
|
| |
See accompanying notes to financial statements on page 50. |
49
|
|
|
|
|
| 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, and Sit Balanced, 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. |
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. |
|
|
| Investments in Securities |
| Investments in securities traded on national or international securities exchanges are valued at the last reported |
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| 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, 2008. |
|
|
| 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 Funds do not expect any changes to their fair valuation procedures for net assets and expect the only impact of this pronouncement will be a new disclosure of methods of fair value. |
|
|
| 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. The adoption of FIN 48 did not have a material impact on the Funds. |
|
|
| Illiquid Securities |
| Each Fund currently limits investments in illiquid securities to 15% of net assets. At June 30, 2008, there were no securities deemed illiquid by the investment adviser. 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. |
51
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Notes to Financial Statements (continued) |
|
|
|
|
|
|
|
|
|
|
| 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 4:00 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. |
|
|
| Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of June 30, 2008, no provision for income would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise returns for the 2005, 2006, and 2007 tax years for which the applicable statutes of limitations have not expired remain subject to examination by the Internal Revenue Service and state departments of revenue. |
|
|
| Net investment income and net realized gains 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, 2008 and 2007 were as follows: |
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, 2008: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary Income |
| Long Term |
| Return of |
| Total |
| ||||||||
Balanced |
| $ | 249,989 |
|
|
| — |
|
|
| — |
|
| $ | 249,989 |
|
|
Dividend Growth (Class I) |
|
| 946,131 |
|
|
| 1,584,828 |
|
|
| — |
|
|
| 2,530,959 |
|
|
Dividend Growth (Class S) |
|
| 108,336 |
|
|
| 157,598 |
|
|
| — |
|
|
| 265,934 |
|
|
Large Cap Growth |
|
| 640,031 |
|
|
| — |
|
|
| — |
|
|
| 640,031 |
|
|
Mid Cap Growth |
|
| — |
|
|
| 7,032,835 |
|
| $ | 102,795 |
|
|
| 7,135,630 |
|
|
International Growth |
|
| 408,875 |
|
|
| — |
|
|
| — |
|
|
| 408,875 |
|
|
Small Cap Growth |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
Developing Markets Growth |
|
| 35,294 |
|
|
| 241,893 |
|
|
| — |
|
|
| 277,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
|
|
|
|
Developing Markets Growth |
|
| 35,000 |
|
|
| — |
|
|
| 35,000 |
|
|
|
|
|
|
As of June 30, 2008, the components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Accumulated Capital |
| Unrealized |
| ||||||
Balanced |
| $ | 97,265 |
|
|
| ($4,051,650 | ) |
| $ | 1,176,726 |
|
|
Dividend Growth |
|
| 265,719 |
|
|
| 1,414,018 |
|
|
| 1,619,813 |
|
|
Large Cap Growth |
|
| 572,524 |
|
|
| (13,597,546 | ) |
|
| 19,949,775 |
|
|
Mid Cap Growth |
|
| — |
|
|
| (4,238,702 | ) |
|
| 50,346,776 |
|
|
International Growth |
|
| 308,462 |
|
|
| (29,462,210 | ) |
|
| 10,986,012 |
|
|
Small Cap Growth |
|
| — |
|
|
| (28,968,747 | ) |
|
| 16,082,256 |
|
|
Developing Markets Growth |
|
| — |
|
|
| 602,948 |
|
|
| 9,608,219 |
|
|
53
|
|
|
|
|
| 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Accumulated |
| Additional |
| ||||||
Mid Cap Growth |
|
| 912,063 |
|
|
| (6,751,535 | ) |
|
| 5,839,472 |
|
|
International Growth |
|
| 1,001 |
|
|
| (1,001 | ) |
|
| — |
|
|
Small Cap Growth |
|
| 957,147 |
|
|
| — |
|
|
| (957,147 | ) |
|
Developing Markets Growth |
|
| 64,258 |
|
|
| 106 |
|
|
| (64,364 | ) |
|
|
|
| As of June 30, 2008, 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 |
| $ | 4,051,650 |
|
|
| 2011-2013 |
|
|
|
|
|
|
Large Cap Growth |
|
| 13,597,546 |
|
|
| 2011-2012 |
|
|
|
|
|
|
Mid Cap Growth |
|
| 4,238,702 |
|
|
| 2009-2012 |
|
|
|
|
|
|
International Growth |
|
| 29,462,210 |
|
|
| 2010-2013 |
|
|
|
|
|
|
Small Cap Growth |
|
| 28,968,747 |
|
|
| 2011-2012 |
|
|
|
|
|
|
|
|
| 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 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. |
54
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
(2) | Investment Security Transactions |
| |
| The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended June 30, 2008, were as follow: |
|
|
|
|
|
|
|
|
|
|
|
| Purchases ($) |
| Proceeds ($) |
| ||||
Balanced |
|
| 7,433,410 |
|
|
| 6,590,384 |
|
|
Dividend Growth |
|
| 35,420,300 |
|
|
| 17,845,096 |
|
|
Large Cap Growth |
|
| 193,647,964 |
|
|
| 42,808,766 |
|
|
Mid Cap Growth |
|
| 80,247,100 |
|
|
| 72,429,581 |
|
|
International Growth |
|
| 6,513,064 |
|
|
| 7,281,985 |
|
|
Small Cap Growth |
|
| 34,301,711 |
|
|
| 40,743,783 |
|
|
Developing Markets Growth |
|
| 6,885,240 |
|
|
| 1,985,488 |
|
|
|
|
(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 |
|
| 1.00% |
|
|
| 1.00% |
|
|
Dividend Growth |
|
| 1.00% |
|
|
| 1.00% |
|
|
Large Cap Growth |
|
| 1.00% |
|
|
| 1.00% |
|
|
Mid Cap Growth |
|
| 1.25% |
|
|
| 1.15% |
|
|
International Growth |
|
| 1.85% |
|
|
| 1.50% |
|
|
Small Cap Growth |
|
| 1.50% |
|
|
| 1.50% |
|
|
Developing Markets Growth |
|
| 2.00% |
|
|
| 2.00% |
|
|
|
|
| SIA is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions and other transaction charges relating to investing activities). |
| |
| In addition to the annual 1.00% management fee the Dividend Growth Fund Class S also has a 0.25% annual distribution (12b-1) fee, which is used to pay for distribution fees related to the sale and distribution of its shares. |
55
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Financial Statements (continued) |
| ||
|
|
|
|
|
|
|
| For the periods through December 31, 2008 the Adviser has agreed to limit the management fee of the Mid Cap Growth Fund and International Growth Fund to 1.15% and 1.50% of the Fund’s average daily net assets, respectively. |
|
|
| The Funds invest in the Sit Money Market Fund. The terms of such transactions were identical to those of non-related entities except that, to avoid duplicate investment advisory fees, SIA remits to each Fund an amount equal to all fees otherwise due to SIA 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, 2008: |
|
|
|
|
|
|
| Shares |
| |
Balanced |
|
| 327,000 |
|
Dividend Growth |
|
| 1,010,000 |
|
Large Cap Growth |
|
| 27,146,000 |
|
Mid Cap Growth |
|
| 4,577,000 |
|
International Growth |
|
| 1,062,000 |
|
Small Cap Growth |
|
| 1,999,000 |
|
Developing Markets Growth |
|
| 556,000 |
|
|
|
| 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, 2008: |
|
|
|
|
|
|
|
|
|
| Shares |
| % Shares |
| ||
Balanced |
|
| 214,908 |
|
| 27.1 |
|
Dividend Growth |
|
| 955,045 |
|
| 22.5 |
|
Large Cap Growth |
|
| 433,448 |
|
| 6.5 |
|
Mid Cap Growth |
|
| 3,206,006 |
|
| 22.6 |
|
International Growth |
|
| 731,151 |
|
| 34.5 |
|
Small Cap Growth |
|
| 814,680 |
|
| 32.6 |
|
Developing Markets Growth |
|
| 187,243 |
|
| 21.0 |
|
|
|
(4) | Fund Merger |
|
|
| Pursuant to a plan approved by the shareholders of the Sit Science and Technology Growth Fund (“Science and Technology Fund”), the Mid Cap Growth Fund (“Mid Cap Fund”) acquired all of the assets of the Science and Technology Fund in exchange for shares of common stock of the Mid Cap Fund effective October 26, 2007. |
56
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
| The aggregate net assets of the Mid Cap Fund immediately before the acquisition were $232,066,744 and the combined net assets immediately after the acquisition were $246,118,066. In exchange for 1,052,387 shares and $14,051,322 of net assets in the Science and Technology Fund, the Mid Cap Fund issued 809,357 shares. The net assets of the Science and Technology Fund consisted of: Capital stock of $29,319,743, Accumulated net realized loss of ($19,500,352), and Unrealized appreciation of $4,231,931. As a result of the merger, the Mid Cap Fund acquired capital loss carryovers, which are limited to $6,807,218 by the Internal Revenue Code Section 382, and unrealized capital gains. |
57
|
|
|
|
|
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
|
| ||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 16.93 |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
| $ | 12.47 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .38 |
|
| .34 |
|
| .28 |
|
| .26 |
|
| .21 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.66 | ) |
| 1.78 |
|
| .59 |
|
| .73 |
|
| 1.34 |
|
Total from operations |
|
| (.28 | ) |
| 2.12 |
|
| .87 |
|
| .99 |
|
| 1.55 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.33 | ) |
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.33 | ) |
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
| (.22 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 16.32 |
| $ | 16.93 |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
|
Total investment return (2) |
|
| (1.72 | %) |
| 14.24 | % |
| 6.03 | % |
| 7.28 | % |
| 12.53 | % |
Net assets at end of period (000’s omitted) |
| $ | 12,939 |
| $ | 12,529 |
| $ | 11,617 |
| $ | 12,251 |
| $ | 12,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| 2.22 | % |
| 2.13 | % |
| 1.84 | % |
| 1.84 | % |
| 1.58 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 54.96 | % |
| 41.63 | % |
| 50.00 | % |
| 36.32 | % |
| 44.82 | % |
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | 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. |
58
|
|
|
|
|
| Sit Dividend Growth Fund Class I |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
| |
|
| Years Ended June 30, |
|
| ||||||||||||
|
|
|
| |||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
|
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 14.42 |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
| $ | 10.00 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .23 |
|
| .24 |
|
| .25 |
|
| .21 |
|
| .08 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.63 | ) |
| 2.35 |
|
| 1.20 |
|
| 1.01 |
|
| .10 |
|
Total from operations |
|
| (.40 | ) |
| 2.59 |
|
| 1.45 |
|
| 1.22 |
|
| .18 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.22 | ) |
| (.23 | ) |
| (.23 | ) |
| (.18 | ) |
| (.04 | ) |
From net realized gains |
|
| (.69 | ) |
| (.20 | ) |
| (.14 | ) |
| — |
|
| — |
|
Total distributions |
|
| (.91 | ) |
| (.43 | ) |
| (.37 | ) |
| (.18 | ) |
| (.04 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 13.11 |
| $ | 14.42 |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
|
Total investment return (2) |
|
| (3.06 | %) |
| 21.48 | % |
| 13.20 | % |
| 12.12 | % |
| 1.75 | % |
Net assets at end of period (000’s omitted) |
| $ | 41,239 |
| $ | 37,674 |
| $ | 24,137 |
| $ | 14,196 |
| $ | 6,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % (5) |
Net investment income (loss) to average daily net assets |
|
| 1.68 | % |
| 1.81 | % |
| 2.09 | % |
| 1.94 | % |
| 1.79 | % (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 38.86 | % (4) |
| 34.02 | % (4) |
| 41.28 | % (4) |
| 54.89 | % |
| 13.67 | % |
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | 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. |
|
|
(4) | The portfolio turnover rate presented is for the entire Fund. |
|
|
(5) | Percentages are adjusted to an annual rate. |
See accompanying notes to financial statements on page 50.
59
|
|
|
|
|
| Sit Dividend Growth Fund Class S |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year |
| Year |
| Three months |
| |||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 14.39 |
| $ | 12.26 |
| $ | 12.28 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .20 |
|
| .21 |
|
| .05 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.63 | ) |
| 2.33 |
|
| (.02 | ) |
Total from operations |
|
| (.43 | ) |
| 2.54 |
|
| .03 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.19 | ) |
| (.21 | ) |
| (.05 | ) |
From net realized gains |
|
| (.69 | ) |
| (.20 | ) |
| — |
|
Total distributions |
|
| (.88 | ) |
| (.41 | ) |
| (.05 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 13.08 |
| $ | 14.39 |
| $ | 12.26 |
|
Total investment return (2) |
|
| (3.27 | %) |
| 21.02 | % |
| 0.27 | % |
Net assets at end of period (000’s omitted) |
| $ | 14,300 |
| $ | 2,823 |
| $ | 48 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.25 | % |
| 1.25 | % |
| 1.25 | % (5) |
Net investment income (loss) to average daily net assets |
|
| 1.43 | % |
| 1.56 | % |
| 1.84 | % (5) |
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 38.86 | % (4) |
| 34.02 | % (4) |
| 41.28 | % (4) |
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | 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. |
|
|
(4) | The portfolio turnover rate presented is for the entire fund. |
|
|
(5) | Percentages are adjusted to an annual rate. |
60
|
|
|
|
|
|
|
|
| |
| Sit Large Cap Growth Fund |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
|
| ||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 43.99 |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
| $ | 26.92 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .20 |
|
| .24 |
|
| .17 |
|
| .16 |
|
| .01 |
|
Net realized and unrealized gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(losses) on investments |
|
| (.65 | ) |
| 6.43 |
|
| 3.23 |
|
| 2.27 |
|
| 5.05 |
|
Total from operations |
|
| (.45 | ) |
| 6.67 |
|
| 3.40 |
|
| 2.43 |
|
| 5.06 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.13 | ) |
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.13 | ) |
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
| (.02 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 43.41 |
| $ | 43.99 |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
|
Total investment return (2) |
|
| (1.03 | %) |
| 17.79 | % |
| 9.91 | % |
| 7.62 | % |
| 18.81 | % |
Net assets at end of period (000’s omitted) |
| $ | 287,695 |
| $ | 125,741 |
| $ | 101,873 |
| $ | 69,660 |
| $ | 63,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| 0.46 | % |
| 0.59 | % |
| 0.46 | % |
| 0.49 | % |
| 0.02 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 21.97 | % |
| 27.80 | % |
| 23.71 | % |
| 23.22 | % |
| 29.71 | % |
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
See accompanying notes to financial statements on page 50. | |
|
|
| 61 |
|
|
|
|
|
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
|
| ||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 15.71 |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
| $ | 8.06 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| (.07 | ) |
| (.04 | ) |
| — |
|
| (.07 | ) |
| (.07 | ) |
Net realized and unrealized gains (losses) on investments |
|
| (.31 | ) |
| 2.74 |
|
| 1.73 |
|
| 1.12 |
|
| 2.24 |
|
Total from operations |
|
| (.38 | ) |
| 2.70 |
|
| 1.73 |
|
| 1.05 |
|
| 2.17 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| (.50 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.50 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 14.83 |
| $ | 15.71 |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
|
Total investment return (2) |
|
| (2.63 | %) |
| 20.75 | % |
| 15.34 | % |
| 1 0.26 | % |
| 26.92 | % |
Net assets at end of period (000’s omitted) |
| $ | 210,880 |
| $ | 205,256 |
| $ | 191,541 |
| $ | 199,449 |
| $ | 204,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) |
|
| 1.25 | % |
| 1.25 | % |
| 1.25 | % |
| 1.25 | % |
| 1.25 | % |
Expenses (with waiver) |
|
| 1.15 | % |
| 1.15 | % |
| 1.15 | % |
| 1.15 | % |
| 1.15 | % |
Net investment income (loss) (without waiver) |
|
| (0.52 | %) |
| (0.41 | %) |
| (0.13 | %) |
| (0.76 | %) |
| (0.81 | %) |
Net investment income (loss) (with waiver) |
|
| (0.42 | %) |
| (0.31 | %) |
| (0.03 | %) |
| (0.66 | %) |
| (0.71 | %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 34.61 | % |
| 40.08 | % |
| 32.48 | % |
| 39.74 | % |
| 65.14 | % |
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | The ratio information is calculated based on average daily net assets. |
62
|
|
|
|
|
| Sit International Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, | ||||||||||||||
|
| |||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 18.70 |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
| $ | 9.39 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .15 |
|
| .20 |
|
| .14 |
|
| .07 |
|
| .01 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.85 | ) |
| 3.17 |
|
| 3.10 |
|
| 1.03 |
|
| 1.92 |
|
Total from operations |
|
| (.70 | ) |
| 3.37 |
|
| 3.24 |
|
| 1.10 |
|
| 1.93 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.20 | ) |
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.20 | ) |
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
| (.08 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 17.80 |
| $ | 18.70 |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
|
Total investment return (2) |
|
| (3.82 | %) |
| 21.87 | % |
| 26.37 | % |
| 9.80 | % |
| 20.63 | % |
Net assets at end of period (000’s omitted) |
| $ | 37,714 |
| $ | 39,511 |
| $ | 34,700 |
| $ | 29,152 |
| $ | 34,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (without waiver) (4) |
|
| 1.85 | % |
| 1.85 | % |
| 1.85 | % |
| 1.85 | % |
| 1.85 | % |
Expenses (with waiver) (4) |
|
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
Net investment income (loss) (without waiver) |
|
| 0.43 | % |
| 0.84 | % |
| 0.60 | % |
| 0.21 | % |
| (0.21 | %) |
Net investment income (loss) (with waiver) |
|
| 0.78 | % |
| 1.19 | % |
| 0.95 | % |
| 0.56 | % |
| 0.14 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 16.83 | % |
| 17.25 | % |
| 20.21 | % |
| 28.27 | % |
| 44.37 | % |
|
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | The ratio information is calculated based on average daily net assets. |
| Total Fund expenses are limited to 1.85% of average daily net assets. |
| However, during the periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
|
|
(4) | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
See accompanying notes to financial statements on page 50.
63
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 40.14 |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
| $ | 21.64 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| (.37 | ) |
| (.27 | ) |
| (.23 | ) |
| (.27 | ) |
| (.27 | ) |
Net realized and unrealized gains (losses) on investments |
|
| (2.33 | ) |
| 6.95 |
|
| 5.95 |
|
| 2.72 |
|
| 3.92 |
|
Total from operations |
|
| (2.70 | ) |
| 6.68 |
|
| 5.72 |
|
| 2.45 |
|
| 3.65 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 37.44 |
| $ | 40.14 |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
|
Total investment return (2) |
|
| (6.73 | %) |
| 19.96 | % |
| 20.62 | % |
| 9.69 | % |
| 16.87 | % |
Net assets at end of period (000’s omitted) |
| $ | 93,527 |
| $ | 105,800 |
| $ | 106,977 |
| $ | 180,545 |
| $ | 199,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| (0.93 | %) |
| (0.79 | %) |
| (0.67 | %) |
| (1.08 | %) |
| (1.10 | %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 37.20 | % |
| 38.79 | % |
| 54.73 | % |
| 33.75 | % |
| 65.79 | % |
|
| |
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
64
|
|
|
|
|
| Sit Developing Markets Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Years Ended June 30, |
| |||||||||||||
|
| |||||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| |||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 24.94 |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
| $ | 8.12 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| (.07 | ) |
| .05 |
|
| .04 |
|
| .06 |
|
| .04 |
|
Net realized and unrealized gains (losses) on investments |
|
| 1.41 |
|
| 7.56 |
|
| 4.43 |
|
| 3.04 |
|
| 1.78 |
|
Total from operations |
|
| 1.34 |
|
| 7.61 |
|
| 4.47 |
|
| 3.10 |
|
| 1.82 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.04 | ) |
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
From net realized gains |
|
| (.27 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.31 | ) |
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
| (.05 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 25.97 |
| $ | 24.94 |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
|
Total investment return (2) |
|
| 5.26 | % |
| 43.82 | % |
| 34.47 | % |
| 31.32 | % |
| 22.48 | % |
Net assets at end of period (000’s omitted) |
| $ | 23,195 |
| $ | 18,430 |
| $ | 13,057 |
| $ | 10,575 |
| $ | 8,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
| (0.27 | %) |
| 0.25 | % |
| 0.24 | % |
| 0.55 | % |
| 0.37 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 9.40 | % |
| 16.25 | % |
| 27.38 | % |
| 29.54 | % |
| 33.72 | % |
|
|
|
|
|
(1) | The net investment income (loss) per share is based on average shares outstanding for the period. |
|
|
(2) | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
|
|
(3) | 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 50.
65
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| 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.), and Sit Developing Markets Growth Fund (a series of Sit Mutual Funds, Inc.) as of June 30, 2008, 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. |
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| We conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. |
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| In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit Balanced Fund, Sit Dividend Growth Fund, Sit Large Cap Growth Fund, Sit Mid Cap Growth Fund, Sit International Growth Fund, Sit Small Cap Growth Fund, and Sit Developing Markets Growth Fund as of June 30, 2008 and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles. |
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| Minneapolis, Minnesota |
| August 20, 2008 |
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As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2008 to June 30, 2008.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs (redemption fees) were included, your costs would have been higher.
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Balanced Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 943.90 | $4.82 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.01 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.)
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Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 938.50 | $4.81 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.01 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.)
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Dividend Growth Fund Class S | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 937.40 | $6.00 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.75 | $6.26 |
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Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 943.90 | $4.82 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.01 |
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Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 920.50 | $5.48 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.25 | $5.76 |
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International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 918.50 | $7.14 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.50 |
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Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 908.70 | $7.10 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.50 |
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| Expense Example (Continued) |
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Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 887.60 | $9.36 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.00 | $9.99 |
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The Sit Mutual Funds are a family of no-load mutual funds. The seven 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, and the Sit Dividend Growth Fund (the “Funds” or individually, a “Fund”). The five bond funds within the Sit Mutual Fund family are described in a Bond Funds Annual Report. The Sit Mid Cap Growth Fund and Sit Large Cap Growth Fund, and the corporate issuer of the Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, and Sit Dividend Growth Fund have a Board of Directors and officers. Pursuant to Minnesota law, the Boards of Directors are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day-to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below. The business address, unless otherwise noted below, is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The Stock Funds’ SAI has additional information about the fund’s directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
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Name, | Position Held | Term of Office(1) and | Principal Occupations | Number of | Other Directorships |
Interested Director: | |||||
William E. Frenzel | 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 Sit Investment Associates, (the “Adviser”); Director of Sit/Kim International Investment Associates, II, LLC (“Sit/Kim”); Director of Sit Investment Fixed Income Advisors, Inc. (“SF”). | 12 | None. |
Independent Directors: | |||||
Melvin C. Bahle | Director | Director since 2005; Director Emeritus from 1995 to 2005, and Director from 1984 to 1995, or the Fund’s inception if later. | Director and/or officer of several foundations and charitable organizations. | 12 | None. |
John P. Fagan | Director | Director since 2006. | Honorary member on Board of St. Joseph’s College in Rensselaer, IN. | 12 | None. |
Sidney L. Jones | Director | Director from 1988 to 1989 and from 1993 or the Fund’s inception if later. | Lecturer, Washington Campus Consortium of 17 Universities; Senior Advisor to Lawrence and Company, Toronto, Canada (investment management). | 12 | None. |
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| Information about Directors and Officers (Continued) |
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Name, | Position Held | Term of Office(1) and | Principal Occupations | Number of | Other Directorships |
Independent Directors (continued) | |||||
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. | 12 | None. |
Donald W. 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. | 12 | None. |
Officers: | |||||
Roger J. Sit | President | Re-elected by the Boards annually; Officer since 1998. | President, CEO and Global CIO of the Adviser; Director, President, CEO and Global CIO of Sit/Kim; Chairman and CEO of SF; Chairman of SIA Securities Corp. (the “Distributor”). | N/A | N/A |
Kent L. Johnson | Vice President -Investments | Re-elected by the Boards annually; Officer since 2003. | Senior Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Ronald D. Sit | Vice President - Investments | Re-elected by the Boards annually; Officer since 1985. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Robert W. Sit | Vice President - Investments | Re-elected by the Boards annually; Officer since 1997. | Vice President - Research and Investment Management of the Adviser. | N/A | N/A |
Bryce A. Doty | Vice President - Investments of Balanced Fund only. | Re-elected by the Boards annually; Officer since 2002. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Mark H. Book | Vice President - Investments of Balanced Fund only. | Re-elected by the Boards annually; Officer since 2002. | Vice President and Portfolio Manager of SF. | N/A | N/A |
Paul E. Rasmussen | Vice President, Treasurer & Chief Compliance Officer | Re-elected by the Boards annually; Officer since 1994. | Vice President, Secretary, Controller & Chief Compliance Officer of the Adviser; Vice President, Secretary, and Chief Compliance Officer of Sit/Kim and SF; President of the Distributor. | N/A | N/A |
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Name, | Position Held | Term of Office(1) and | Principal Occupations | Number of | Other Directorships |
Officers (Continued) | |||||
Michael J. Radmer | Secretary | Re-elected by the Boards annually; Officer since 1984. | Partner of the Funds’ general counsel, Dorsey & Whitney, LLP | N/A | N/A |
Carla J. Rose | Vice President, Assistant Secretary & Assistant Treasurer | Re-elected by the Boards annually; Officer since 2000. | Vice President, Administration & Deputy Controller of the Adviser; Vice President, Administration and Controller of Sit/Kim; Controller and Treasurer of SF; Vice President and Assistant Secretary of the Distributor. | N/A | N/A |
Kelly K. Boston | Assistant Secretary & Assistant Treasurer | Re-elected by the Boards annually; Officer since 2000. | Staff Attorney of the Adviser; Secretary of the Distributor. | N/A | N/A |
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(1) | Each Director serves until his resignation, removal or the next meeting of the shareholders at which election of directors is an agenda item and until his successor is duly elected and shall qualify. |
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(2) | Directors who are deemed to be “interested persons” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Frenzel is deemed to be an interested person because he is a director and shareholder of the Fund’s investment adviser. |
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(3) | Includes only directorships of companies required to report under the Securities Exchange Act of 1934 (i.e. public companies) or other investment companies registered under the 1940 Act. |
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We are required by Federal tax regulations to provide shareholders with certain information regarding dividend distributions on an annual fiscal year basis. The figures are for informational purposes only and should not be used for reporting to federal or state revenue agencies. All necessary tax information will be mailed in January each year.
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Fund and Payable Date |
| Ordinary |
| Long-Term |
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Balanced Fund |
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October 5, 2007 |
| $ | 0.07569 |
| $ | 0.00000 |
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December 18, 2007 |
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| 0.08405 |
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| 0.00000 |
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April 11, 2008 |
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| 0.08652 |
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| 0.00000 |
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July 11, 2008 |
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| 0.12830 |
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| 0.00000 |
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| $ | 0.37456 | (b) | $ | 0.00000 |
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Dividend Growth Fund (Class I) |
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October 5, 2007 |
| $ | 0.04984 |
| $ | 0.00000 |
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December 18, 2007 |
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| 0.18314 |
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| 0.57089 |
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April 11, 2008 |
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| 0.04818 |
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| 0.00000 |
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July 11, 2008 |
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| 0.06380 |
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| $ | 0.34496 | (c) | $ | 0.57089 |
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Dividend Growth Fund (Class S) |
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October 5, 2007 |
| $ | 0.04279 |
| $ | 0.00000 |
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December 18, 2007 |
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| 0.17420 |
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| 0.57089 |
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April 11, 2008 |
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| 0.04393 |
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| 0.00000 |
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July 11, 2008 |
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| 0.05568 |
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| $ | 0.31659 | (c) | $ | 0.57089 |
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Large Cap Growth Fund |
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December 18, 2007 |
| $ | 0.13308 | (d) | $ | 0.00000 |
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Mid Cap Growth Fund |
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December 18, 2007 |
| $ | 0.00000 |
| $ | 0.49660 | (g) |
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Developing Markets Growth Fund |
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December 18, 2007 |
| $ | 0.03912 | (e) | $ | 0.26810 |
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International Growth Fund |
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December 18, 2007 |
| $ | 0.19615 | (e) | $ | 0.00000 |
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(a) | Includes distributions of short-term gains, if any, which are taxable as ordinary income. |
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(b) | Taxable as ordinary income, 29.9% qualifying for reduced dividend income tax rate for individuals. |
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(c) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. |
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(d) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. |
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(e) | Taxable as ordinary income, 100.0% qualifying for reduced dividend income tax rate for individuals. |
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(f) | Taxable as long-term gain. |
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(g) | Amount includes return of capital of $0.0072 per share. |
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Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available 1) without charge upon request by calling the Funds at 1-800-332-5580; and 2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds’ annual and semi-annual reports include complete lists of each portfolio’s holdings. For the first and third quarters of each fiscal year, the Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) on Forms N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580.
75
Sit Mutual Funds are managed by Sit Investment Associates, Inc. Sit Investment Associates was founded by Eugene C. Sit in July 1981 and is dedicated to a single purpose, to be one of the premier investment management firms in the United States. Sit Investment Associates currently manages approximately $7.8 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of no-load Funds. The Stock Funds, excluding the Balanced Fund, charge a 2% redemption fee on shares held less than 30 days.
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Sit Mutual Funds offer: | ||
| • | Free telephone exchange |
| • | Dollar-cost averaging through an automatic investment plan |
| • | Electronic transfer for purchases and redemptions |
| • | Free checkwriting privileges on Bond Funds |
| • | Retirement accounts including IRAs and 401(k) plans. |
76
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, 2008
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INVESTMENT ADVISER | AUDITORS |
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:
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| Audit |
| Audit |
| Tax |
| Other |
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Fiscal year ended June 30, 2008 |
| 23,900 |
| 0 |
| 4,095 |
| 0 |
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Fiscal year ended June 30, 2007 |
| 21,900 |
| 0 |
| 3,975 |
| 0 |
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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 $0.00 and $32,000, 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 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date: August 29, 2008
By (Signature and Title)* | /s/ Roger J. Sit |
| Roger J. Sit |
| President |
Date: August 29, 2008
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:
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| Audit |
| Audit |
| Tax |
| Other |
|
Fiscal year ended June 30, 2008 |
| 19,500 |
| 0 |
| 4,095 |
| 0 |
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Fiscal year ended June 30, 2007 |
| 18,900 |
| 0 |
| 3,975 |
| 0 |
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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 $0.00 and $32,000, 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 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date: August 29, 2008
By (Signature and Title)* | /s/ Roger J. Sit |
| Roger J. Sit |
| President |
Date: August 29, 2008
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:
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| 2008 |
| 2007 |
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| Audit |
| Audit |
| Tax |
| Other |
| Audit |
| Audit |
| Tax |
| Other |
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Fiscal year ended June 30 |
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Sit Mutual Funds, Inc. |
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Sit International Growth Fund (series A) |
| 21,600 |
| 0 |
| 4,095 |
| 0 |
| 21,000 |
| 0 |
| 3,975 |
| 0 |
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Sit Balanced Fund (series B) |
| 14,800 |
| 0 |
| 4,095 |
| 0 |
| 14,400 |
| 0 |
| 3,975 |
| 0 |
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Sit Developing Markets Growth Fund (series C) |
| 14,100 |
| 0 |
| 4,095 |
| 0 |
| 13,700 |
| 0 |
| 3,975 |
| 0 |
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Sit Small Cap Growth Fund (series D) |
| 17,400 |
| 0 |
| 4,095 |
| 0 |
| 16,900 |
| 0 |
| 3,975 |
| 0 |
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Sit Science and Technology Growth Fund (series E) |
| 2,500 |
| 0 |
| 3,250 |
| 0 |
| 14,300 |
| 0 |
| 3,975 |
| 0 |
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Sit Dividend Growth Fund (series G) |
| 14,200 |
| 0 |
| 4,095 |
| 0 |
| 13,800 |
| 0 |
| 3,975 |
| 0 |
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Total Mutual Funds, Inc. |
| 84,600 |
| 0 |
| 23,725 |
| 0 |
| 94,100 |
| 0 |
| 23,850 |
| 0 |
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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 $0.00 and $32,000, 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 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date: August 29, 2008
By (Signature and Title)* | /s/ Roger J. Sit |
| Roger J. Sit |
| President |
Date: August 29, 2008