UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03342
Sit Mid Cap Growth Fund, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant's telephone number, including area code:
(612) 334-5888
Date of fiscal year end: | June 30, 2009 |
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Date of reporting period: | December 31, 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)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant's telephone number, including area code:
(612) 334-5888
Date of fiscal year end: | June 30, 2009 |
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Date of reporting period: | December 31, 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)
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant's telephone number, including area code:
(612) 334-5888
Date of fiscal year end: | June 30, 2009 |
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Date of reporting period: | December 31, 2008 |
Item 1: | Reports to Stockholders |
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Sit Mutual Funds
Six Months Ended December 31, 2008
A FAMILY OF NO-LOAD FUNDS
Balanced Fund
Dividend Growth Fund
Global 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 SEMI-ANNUAL REPORT |
TABLE OF CONTENTS |
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| Fund Reviews and Portfolios of Investments |
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Sit Mutual Funds | |
Six Months Ended December 31, 2008 | |
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Dear Fellow Shareholders:
The historic decline in the equity market made 2008 a year to forget for investors. Despite all of the gloom, we believe that the stage is being set for at least a modest recovery in the economy – and stock prices – as 2009 progresses.
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With best wishes,
Roger J. Sit
Chairman, President, CEO and Global CIO
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| Sit Mutual Funds |
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| Six Months Ended December 31, 2008 |
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SIT EQUITY FUNDS |
| 3-Month |
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Balanced SIBAX |
| -15.45 | % |
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S&P 500 Index |
| -21.94 |
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Lehman Aggregate Bond Index |
| 4.58 |
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Dividend Growth Class I(1) SDVGX |
| -19.13 |
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S&P 500 Index |
| -21.94 |
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Dividend Growth Class S(1) SDVSX |
| -19.10 |
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S&P 500 Index |
| -21.94 |
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Global Dividend Growth(2) Class I(1) GDGIX |
| -5.25 |
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Global Dividend Growth(2) Class S(1) GDGSX |
| -5.31 |
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Composite Index(4) |
| -21.11 |
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S&P 500 Index |
| -21.94 |
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MSCI EAFE Index |
| -19.95 |
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Large Cap Growth SNIGX |
| -21.13 |
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Russell 1000® Growth Index(5) |
| -22.79 |
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Mid Cap Growth(5) NBNGX |
| -26.99 |
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Russell Midcap® Growth Index(6) |
| -27.36 |
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International Growth(2) SNGRX |
| -23.52 |
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MSCI EAFE Growth Index(8) |
| -20.10 |
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Small Cap Growth(5) SSMGX |
| -26.22 |
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Russell 2000® Growth Index(9) |
| -27.45 |
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Developing Markets Growth(2) SDMGX |
| -30.73 |
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MSCI Emerging Markets Index(9) |
| -27.94 |
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*3- and 6-month returns not annualized.
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Average annual total returns include changes in share price as well as reinvestment of all dividends and capital gains.
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(1) | The Fund offers its shares in two classes: Class I shares and Class S shares. 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. Returns differ only to the extent that the 12b-1 distribution fee (0.25%) that is charged to Class S shares. |
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| AVERAGE ANNUAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2008 |
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6-Month |
| 1-Year |
| 3-Year |
| 5-Year |
| 10-Year |
| Since |
| Inception | |||||||
-22.54 | % |
| -26.88 | % |
| -4.47 | % |
| 0.47 | % |
| -0.11 | % |
| 5.11 | % |
| 12/31/93 |
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-28.48 |
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| -37.00 |
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| -8.36 |
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| -2.19 |
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| -1.38 |
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| 6.45 |
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4.07 |
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| 5.24 |
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| 5.51 |
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| 4.65 |
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| 5.63 |
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| 6.17 |
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-24.99 |
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| -29.60 |
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| -2.04 |
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| 2.67 |
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| — |
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| 2.67 |
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| 12/31/03 |
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-28.48 |
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| -37.00 |
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| -8.36 |
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| -2.19 |
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| — |
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| -2.19 |
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-25.08 |
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| -29.77 |
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| — |
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| — |
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| -4.55 |
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| 3/31/06 |
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-28.48 |
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| -37.00 |
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| — |
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| -10.42 |
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— |
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| — |
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| -5.25 | (3) |
| 9/30/08 |
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— |
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| -5.31 | (3) |
| 9/30/08 |
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— |
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| -21.11 | (3) |
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— |
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| -21.94 | (3) |
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— |
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| -19.95 | (3) |
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-30.18 |
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| -34.10 |
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| -6.25 |
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| 0.37 |
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| -2.93 |
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| 8.99 |
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| 9/2/82 |
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-32.31 |
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| -38.44 |
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| -9.11 |
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| -3.42 |
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| -4.27 |
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| 9.42 |
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-40.62 |
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| -45.34 |
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| -10.71 |
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| -0.81 |
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| -0.56 |
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| 10.72 |
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| 9/2/82 |
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-40.26 |
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| -44.32 |
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| -11.78 |
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| -2.33 |
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| -0.19 |
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-40.11 |
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| -44.99 |
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| -8.95 |
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| -0.45 |
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| -4.19 |
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| 2.42 |
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| 11/1/91 |
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-37.62 |
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| -42.70 |
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| -6.54 |
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| 1.43 |
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| -1.30 |
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| 2.21 |
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-37.23 |
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| -42.96 |
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| -9.48 |
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| -1.25 |
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| 4.03 |
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| 8.29 |
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| 7/1/94 |
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-32.51 |
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| -38.54 |
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| -9.32 |
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| -2.35 |
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| -0.76 |
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| 3.63 |
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-49.59 |
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| -55.26 |
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| -6.08 |
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| 5.25 |
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| 5.61 |
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| 2.09 |
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| 7/1/94 |
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-47.84 |
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| -54.48 |
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| -7.07 |
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| 5.07 |
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| 6.61 |
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| 1.17 |
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(2) | International investing has special risks, such as currency exchange fluctuations, high volatility, illiquidity and the possibility of political instability. |
(3) | Period from Fund inception (9/30/08) thorough current month-end. Not annualized. |
(4) | Composite Index comprised of 60% S&P 500 Index and 40% MSCI EAFE Index. |
(5) | Figures assume an inception date of 9/2/82. |
(6) | Stocks of small- and mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. |
(7) | Russell Midcap Growth® Index inception 12/31/85. |
(8) | Figures assume an inception date of 10/31/91. |
(9) | Figures assume an inception date of 6/30/94. |
5
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| Sit Mutual Funds |
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| SIT EQUITY FUNDS TOTAL RETURN BY CALENDAR YEAR |
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| 1997 |
| 1998 |
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| 2000 |
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| Balanced |
| 21.73 | % |
| 21.30 | % |
| 20.15 | % |
| -4.80 | % |
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| S&P 500 Index |
| 33.36 |
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| 28.58 |
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| 21.04 |
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| -9.11 |
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| Lehman Aggregate Bond Index |
| 9.65 |
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| 8.69 |
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| -0.82 |
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| 11.63 |
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| Dividend Growth Class I |
| — |
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| — |
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| — |
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| — |
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| S&P 500 Index |
| — |
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| — |
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| — |
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| — |
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| Dividend Growth Class S |
| — |
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| — |
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| — |
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| — |
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| S&P 500 Index |
| — |
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| — |
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| — |
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| — |
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| Global Dividend Growth Class I(1) |
| — |
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| — |
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| — |
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| — |
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| Global Dividend Growth Class S(1) |
| — |
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| — |
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| — |
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| — |
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| Composite Index(3) |
| — |
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| — |
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| — |
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| — |
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| S&P 500 Index |
| — |
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| — |
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| — |
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| — |
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| MSCI EAFE Index |
| — |
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| — |
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| — |
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| — |
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| Large Cap Growth(4) |
| 31.70 |
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| 30.56 |
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| 33.41 |
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| -13.84 |
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| Russell 1000® Growth Index |
| 30.48 |
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| 38.72 |
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| 33.16 |
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| -22.43 |
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| Mid Cap Growth(5) (6) |
| 17.70 |
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| 6.84 |
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| 70.65 |
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| -4.35 |
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| Russell Midcap® Growth Index |
| 22.54 |
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| 17.87 |
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| 51.29 |
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| -11.75 |
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| International Growth(1) |
| 4.81 |
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| 18.95 |
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| 50.77 |
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| -26.66 |
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| MSCI EAFE Growth Index |
| 2.11 |
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| 22.21 |
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| 29.46 |
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| -24.51 |
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| Small Cap Growth(5) |
| 7.63 |
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| 1.97 |
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| 108.63 |
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| 6.25 |
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| Russell 2000® Growth Index |
| 12.94 |
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| 1.24 |
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| 43.10 |
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| -22.44 |
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| Developing Markets Growth(1) |
| -5.20 |
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| -24.93 |
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| 82.50 |
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| -30.18 |
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| MSCI Emerging Markets Index |
| -13.40 |
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| -27.52 |
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| 63.70 |
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| -31.80 |
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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) | International investing has special risks, such as currency exchange fluctuations, high volatility, illiquidity and the possibility of political instability. |
(2) | Due to the Fund’s inception date of 9/30/08, the 2008 calendar year returns for the Sit Global Dividend Growth Fund and its benchmarks reflect performance since 9/30/08. |
(3) | Composite Index comprised of 60% S&P 500 Index and 40% MSCI EAFE Index. |
6
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| 2001 |
| 2002 |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
| 2008 | ||||||||
Balanced |
| -12.99 | % |
| -18.59 | % |
| 19.20 | % |
| 9.22 | % |
| 7.51 | % |
| 7.88 | % |
| 10.52 | % |
| -26.88 | % |
S&P 500 Index |
| -11.88 |
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| -22.10 |
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| 28.68 |
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| 10.88 |
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| 4.91 |
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| 15.80 |
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| 5.50 |
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| -37.00 |
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Lehman Aggregate Bond Index |
| 8.44 |
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| 10.25 |
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| 4.10 |
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| 4.34 |
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| 2.43 |
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| 4.33 |
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| 6.97 |
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| 5.24 |
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Dividend Growth Class I |
| — |
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| — |
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| — |
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| 10.91 |
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| 9.41 |
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| 18.29 |
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| 12.89 |
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| -29.60 |
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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 |
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| -37.00 |
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Dividend Growth Class S |
| — |
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| — |
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| — |
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| — |
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| — |
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| 11.25 |
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| 12.56 |
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| -29.77 |
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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 |
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| -37.00 |
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Global Dividend Growth Class I(1) |
| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| -5.25 | (2) |
Global Dividend Growth Class S(1) |
| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| -5.31 | (2) |
Composite Index(3) |
| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| -21.11 | (2) |
S&P 500 Index |
| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| -21.94 | (2) |
MSCI EAFE Index |
| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| — |
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| -19.95 | (2) |
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Large Cap Growth(4) |
| -27.70 |
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| -30.58 |
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| 26.34 |
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| 12.79 |
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| 9.59 |
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| 9.54 |
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| 14.14 |
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| -34.10 |
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Russell 1000® Growth Index |
| -20.42 |
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| -27.89 |
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| 29.76 |
|
| 6.30 |
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| 5.27 |
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| 9.08 |
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| 11.81 |
|
| -38.44 |
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|
Mid Cap Growth(5) (6) |
| -33.39 |
|
| -34.64 |
|
| 38.51 |
|
| 17.02 |
|
| 15.27 |
|
| 9.56 |
|
| 18.87 |
|
| -45.34 |
|
Russell Midcap® Growth Index |
| -20.15 |
|
| -27.41 |
|
| 42.71 |
|
| 15.48 |
|
| 12.10 |
|
| 10.65 |
|
| 11.44 |
|
| -44.32 |
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International Growth(1) |
| -33.26 |
|
| -29.84 |
|
| 28.70 |
|
| 12.97 |
|
| 14.67 |
|
| 18.19 |
|
| 16.08 |
|
| -44.99 |
|
MSCI EAFE Growth Index |
| -24.58 |
|
| -16.02 |
|
| 31.99 |
|
| 16.12 |
|
| 13.28 |
|
| 22.33 |
|
| 16.45 |
|
| -42.70 |
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|
Small Cap Growth(5) |
| -28.19 |
|
| -26.22 |
|
| 34.57 |
|
| 6.79 |
|
| 18.52 |
|
| 7.99 |
|
| 20.43 |
|
| -42.96 |
|
Russell 2000® Growth Index |
| -9.24 |
|
| -30.27 |
|
| 48.53 |
|
| 14.31 |
|
| 4.15 |
|
| 13.34 |
|
| 7.05 |
|
| -38.54 |
|
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Developing Markets Growth(1) |
| -12.01 |
|
| -18.37 |
|
| 45.96 |
|
| 16.54 |
|
| 33.77 |
|
| 31.59 |
|
| 40.72 |
|
| -55.26 |
|
MSCI Emerging Markets Index |
| -4.91 |
|
| -7.97 |
|
| 51.59 |
|
| 22.45 |
|
| 30.31 |
|
| 29.18 |
|
| 36.48 |
|
| -54.48 |
|
|
|
(4) | 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. |
(5) | Stocks of small- and mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. |
(6) | 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, 2008 |
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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, 2008. The index information is intended to permit you to compare each Fund’s performance to a broad measure of market performance. The after-tax returns are intended to show the impact of federal income taxes on an investment in a Fund. The highest individual federal marginal income tax rate in effect during the specified period are assumed, and the state and local tax impact is not reflected. |
|
|
| A Fund’s “Return After Taxes on Distributions” shows the effect of taxable distributions (dividends and capital gain distributions), but assumes that you still hold the Fund shares at the end of the period and so do not have any taxable gain or loss on your investment in the Fund. |
|
|
| A Fund’s “Return After Taxes on Distributions and Sale of Fund Shares” shows the effect of both taxable distributions and any taxable gain or loss that would be realized if the Fund shares were purchased at the beginning and sold at the end of the specified period. |
|
|
| The Funds’ past performance, before and after taxes, is not an indication of how the Funds will perform in the future. Your actual after-tax returns depend on your own tax situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future tax effects. After-tax returns are not relevant to investors who hold their Fund shares in a tax-deferred account (including a 401(k) or IRA account). Indices reflect no deduction for fees, expenses, or taxes. |
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|
| Sit Balanced Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -26.9 | % | 0.5 | % | -0.1 | % |
|
| Return After Taxes on Distributions | -27.5 | % | -0.1 | % | -1.0 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -23.0 | % | 0.2 | % | -0.5 | % |
|
| Lehman Aggregate Bond Index | 5.2 | % | 4.7 | % | 5.6 | % |
|
| S&P 500 Index | -37.0 | % | -2.2 | % | -1.4 | % |
|
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| Sit Dividend Growth Fund - Class I | 1 Year | 5 Years | Since Inception* | ||||
|
| Return Before Taxes | -29.6 | % | n/a |
| 2.7 | % |
|
| Return After Taxes on Distributions | -30.3 | % | n/a |
| 2.0 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -25.1 | % | n/a |
| 2.3 | % |
|
| S&P 500 Index | -37.0 | % | n/a |
| -2.2 | % |
|
|
|
|
|
|
|
|
|
| Sit Dividend Growth Fund - Class S | 1 Year | 5 Years | Since Inception* | ||||
|
| Return Before Taxes | -29.8 | % | n/a |
| -4.6 | % |
|
| Return After Taxes on Distributions | -30.4 | % | n/a |
| -5.5 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -25.3 | % | n/a |
| -3.8 | % |
|
| S&P 500 Index | -37.0 | % | n/a |
| -10.4 | % |
8
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| Sit Global Dividend Growth Fund - Class I | 1 Year | 5 Years | Since Inception* | ||||
|
| Return Before Taxes | n/a |
| n/a |
| n/a |
|
|
| Return After Taxes on Distributions | n/a |
| n/a |
| n/a |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares | n/a |
| n/a |
| n/a |
|
|
| S&P 500 Index | n/a |
| n/a |
| n/a |
|
|
| MSCI EAFE Growth Index | n/a |
| n/a |
| n/a |
|
|
| Composite Index (60% S&P 500 Index, 40% MSCI EAFE Growth Index) | n/a |
| n/a |
| n/a |
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| Sit Global Dividend Growth Fund - Class S | 1 Year | 5 Years | Since Inception* | ||||
|
| Return Before Taxes | n/a |
| n/a |
| n/a |
|
|
| Return After Taxes on Distributions | n/a |
| n/a |
| n/a |
|
|
| Return After Taxes on Distributions and Sale of Fund Shares | n/a |
| n/a |
| n/a |
|
|
| S&P 500 Index | n/a |
| n/a |
| n/a |
|
|
| MSCI EAFE Growth Index | n/a |
| n/a |
| n/a |
|
|
| Composite Index (60% S&P 500 Index, 40% MSCI EAFE Growth Index) | n/a |
| n/a |
| n/a |
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| Sit Large Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -34.1 | % | 0.4 | % | -2.9 | % |
|
| Return After Taxes on Distributions | -34.2 | % | 0.3 | % | -3.3 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -29.0 | % | 0.3 | % | -2.4 | % |
|
| Russell 1000® Growth Index | -38.4 | % | -3.4 | % | -4.3 | % |
|
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| Sit Mid Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -45.3 | % | -0.8 | % | -0.6 | % |
|
| Return After Taxes on Distributions | -45.4 | % | -0.9 | % | -1.2 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -38.5 | % | -0.6 | % | -0.4 | % |
|
| Russell Mid Cap® Growth Index | -44.3 | % | -2.3 | % | -0.2 | % |
|
|
|
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|
| Sit International Growth Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -45.0 | % | -0.5 | % | -4.2 | % |
|
| Return After Taxes on Distributions | -45.1 | % | -0.6 | % | -4.5 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -38.3 | % | -0.4 | % | -3.4 | % |
|
| MSCI EAFE Growth Index | -42.7 | % | 1.4 | % | -1.3 | % |
9
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| Sit Mutual Funds |
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|
| Average Annual Total Returns for Periods Ended December 31, 2008 (continued) |
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| Sit Small Cap Growth Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -43.0 | % | -1.3 | % | 4.0 | % |
|
| Return After Taxes on Distributions | -43.0 | % | -1.3 | % | 4.0 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -36.5 | % | -1.1 | % | 3.5 | % |
|
| Russell 2000® Growth Index | -38.5 | % | -2.4 | % | -0.8 | % |
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| Sit Developing Markets Growth Fund | 1 Year | 5 Years | 10 Years | ||||
|
| Return Before Taxes | -55.3 | % | 5.3 | % | 5.6 | % |
|
| Return After Taxes on Distributions | -55.7 | % | 5.0 | % | 5.5 | % |
|
| Return After Taxes on Distributions and Sale of Fund Shares | -47.0 | % | 4.6 | % | 4.9 | % |
|
| MSCI Emerging Markets Index | -54.5 | % | 5.1 | % | 6.6 | % |
10
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This page has been left blank intentionally.
11
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| |
| Six Months Ended December 31, 2008 |
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| Portfolio Managers: Roger J. Sit, Bryce A. Doty, and John M. Bernstein |
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|
The financial crisis, which began with the housing and subprime lending problems, has rapidly snowballed into a global event with widespread ramifications. The failure of large financial institutions (most notably, Lehman Brothers and the government sponsored enterprises Fannie Mae and Freddie Mac) has understandably shaken investor confidence in the entire financial system, and corporate profits have plunged as credit markets seized up. While the complexity of the current crisis makes predicting its path and duration a daunting task, we are confident that a combination of fiscal policy, monetary policy and simply the passage of time will lead to a better environment down the road. We are also confident in our investment strategy of investing in companies with good long-term business fundamentals, strong balance sheets and battle-tested management teams.
The fixed-income portion of the Fund lagged the Lehman Aggregate Bond Index during the second half of the year, largely due to the Fund’s underweighted position in U.S. Treasuries, which dramatically outperformed all other sectors. The financial crisis, which was exacerbated by the Lehman bankruptcy in September, has created dislocations in many sectors and securities, despite their relatively stable outlooks. We believe this has created attractive total return opportunities for investors. While giving full recognition to the difficult economic and credit outlook and liquidity risks in the marketplace, we see opportunities in many fixed-income segments, including agency mortgages, “new issue” corporate bonds and short maturity asset-backed securities. In short, we believe many fixed-income segments are currently attractive and offer superior risk/ reward potential relative to U.S. Treasuries.
Due to the severity of the equity market decline, the stock/fixed-income allocation has changed over the last several months. As of December 31st, the asset allocation of the Fund was 54% equities (down from 62% at the end of June), 40% fixed-income (up from 35%) and 6% cash (up from 3%). We will continue to emphasize high quality securities in each asset class within the Fund, and we appreciate shareholders’ continued interest.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The Sit Balanced Fund’s dual objectives are to seek long-term growth of capital consistent with the preservation of principal and to provide regular income. It pursues its objectives by investing in a diversified portfolio of stocks and bonds. The Fund may emphasize either equity securities or fixed-income securities, or hold equal amounts of each, dependent upon the Adviser’s analysis of market, financial and economic conditions.
The Fund’s permissible investment allocation is: 35-65% in equity securities and 35-65% in fixed-income securities. At all times at least 25% of the fixed-income assets will be invested in fixed-income senior securities.
|
PORTFOLIO SUMMARY |
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|
|
|
|
|
Net Asset Value 12/31/08: |
| $ | 12.32 Per Share |
|
|
6/30/08: |
| $ | 16.32 Per Share |
|
|
|
|
|
|
|
|
Total Net Assets: |
| $ | 9.9 Million |
|
|
|
PORTFOLIO STRUCTURE |
12
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|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
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| ||
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
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|
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|
|
| ||
3 Month** |
| -15.45 | % |
| -21.94 | % |
| 4.58 | % | ||
6 Month** |
| -22.54 |
|
| -28.48 |
|
| 4.07 |
| ||
1 Year |
| -26.88 |
|
| -37.00 |
|
| 5.24 |
| ||
5 Year |
| 0.47 |
|
| -2.19 |
|
| 4.65 |
| ||
10 Year |
| -0.11 |
|
| -1.38 |
|
| 5.63 |
| ||
Inception |
| 5.11 |
|
| 6.45 |
|
| 6.17 |
| ||
| (12/31/93) |
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| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
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| |
| Sit Balanced |
| S&P 500 |
| Lehman | ||||||
|
|
|
|
|
|
|
|
|
| ||
1 Year |
| -26.88 | % |
| -37.00 | % |
| 5.24 | % | ||
5 Year |
| 2.37 |
|
| -10.48 |
|
| 25.52 |
| ||
10 Year |
| -1.14 |
|
| -13.00 |
|
| 72.97 |
| ||
Inception |
| 111.33 |
|
| 155.68 |
|
| 145.72 |
| ||
(12/31/93) |
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|
*As of 12/31/08. |
|
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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 12/31/98 and held until 12/31/08 would have declined to $9,886 in the Fund, $8,700 in the S&P 500 Index or grown to $17,297 in the Lehman Aggregate Bond Index assuming reinvestment of all dividends and capital gains.
|
TOP HOLDINGS |
|
|
|
Stocks | 1. | Genentech, Inc. |
| 2. | McDonald’s Corp. |
| 3. | Pepsico, Inc. |
| 4. | Verizon Communications, Inc. |
| 5. | Celgene Corp. |
Bonds | 1. | Bank of America, 1.70%, 12/23/10 |
| 2. | MBIA Insurance Co., 14.00%, 1/15/33 |
| 3. | American Strategic, Inc. Portfolio II |
| 4. | U.S. Treasury Strip, 8/15/20 |
| 5. | JP Morgan Chase & Co., 6.40%, 5/15/38 |
Total Number of Holdings: 177 |
13
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| Sit Balanced Fund |
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|
|
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|
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|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
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|
Quantity/Par($)Name of Issuer | Market Value ($)(1) |
| |||
|
|
|
|
|
|
Common Stocks (54.0%) (2) |
|
|
| ||
|
|
|
|
|
|
Communications (2.3%) |
|
|
| ||
1,100 |
| AT&T, Inc. |
| 31,350 |
|
1,900 |
| Rogers Communications, Inc. |
| 57,152 |
|
4,000 |
| Verizon Communications, Inc. |
| 135,600 |
|
|
|
|
| 224,102 |
|
Consumer Durables (0.2%) |
|
|
| ||
2,200 |
| Activision, Inc. (3) |
| 19,008 |
|
| |||||
Consumer Non-Durables (6.1%) |
|
|
| ||
2,700 |
| Coca-Cola Company |
| 122,229 |
|
1,300 |
| Colgate-Palmolive Co. |
| 89,102 |
|
700 |
| NIKE, Inc. |
| 35,700 |
|
2,600 |
| PepsiCo, Inc. |
| 142,402 |
|
1,600 |
| Philip Morris International, Inc. |
| 69,616 |
|
2,000 |
| The Procter & Gamble Co. |
| 123,640 |
|
300 |
| VF Corp. |
| 16,431 |
|
|
|
|
| 599,120 |
|
Consumer Services (2.8%) |
|
|
| ||
2,100 |
| Comcast Corp. |
| 35,448 |
|
2,400 |
| McDonald’s Corp. |
| 149,256 |
|
3,000 |
| News Corp. |
| 27,270 |
|
1,300 |
| Visa, Inc. |
| 68,185 |
|
|
|
|
| 280,159 |
|
Electronic Technology (6.6%) |
|
|
| ||
1,400 |
| Analog Devices, Inc. |
| 26,628 |
|
525 |
| Apple Computer, Inc. (3) |
| 44,809 |
|
4,500 |
| Applied Materials, Inc. |
| 45,585 |
|
1,900 |
| Broadcom Corp. (3) |
| 32,243 |
|
6,700 |
| Cisco Systems, Inc. (3) |
| 109,210 |
|
2,000 |
| Corning, Inc. |
| 19,060 |
|
4,000 |
| EMC Corp. (3) |
| 41,880 |
|
6,700 |
| Intel Corp. |
| 98,222 |
|
1,525 |
| IBM Corp. |
| 128,344 |
|
3,000 |
| Qualcomm, Inc. |
| 107,490 |
|
|
|
|
| 653,471 |
|
Energy Minerals (4.8%) |
|
|
| ||
600 |
| Exxon Mobil Corp. |
| 47,898 |
|
1,000 |
| Murphy Oil Corp. |
| 44,350 |
|
2,000 |
| Occidental Petroleum Corp. |
| 119,980 |
|
3,500 |
| Southwestern Energy Co. (3) |
| 101,395 |
|
800 |
| Suncor Energy, Inc. |
| 15,600 |
|
1,500 |
| Ultra Petroleum Corp. (3) |
| 51,765 |
|
900 |
| Valero Energy Corp. |
| 19,476 |
|
2,116 |
| XTO Energy, Inc. |
| 74,631 |
|
|
|
|
| 475,095 |
|
|
|
|
|
|
|
Quantity/Par($)Name of Issuer | Market Value ($)(1) |
| |||
|
|
|
| ||
Finance (4.5%) |
|
|
| ||
800 |
| Aon Corp. |
| 36,544 |
|
2,100 |
| Bank of New York Mellon Financial Corp. |
| 59,493 |
|
75 |
| Chicago Mercantile Exchange Holdings Inc. |
| 15,608 |
|
2,166 |
| Citigroup, Inc. |
| 14,534 |
|
700 |
| Franklin Resources, Inc. |
| 44,646 |
|
325 |
| Goldman Sachs Group, Inc. |
| 27,427 |
|
2,100 |
| JPMorgan Chase & Co. |
| 66,213 |
|
750 |
| MetLife, Inc. |
| 26,145 |
|
600 |
| PartnerRe, Ltd. |
| 42,762 |
|
1,000 |
| The Travelers Companies, Inc. |
| 45,200 |
|
1,000 |
| U.S. Bancorp |
| 25,010 |
|
1,600 |
| Wells Fargo & Co. |
| 47,168 |
|
|
|
|
| 450,750 |
|
Health Services (1.2%) |
|
|
| ||
600 |
| McKesson Corp. |
| 23,238 |
|
1,200 |
| Medco Health Solutions, Inc. (3) |
| 50,292 |
|
1,700 |
| UnitedHealth Group, Inc. |
| 45,220 |
|
|
|
|
| 118,750 |
|
Health Technology (8.9%) |
|
|
| ||
1,500 |
| Abbott Laboratories |
| 80,055 |
|
600 |
| Allergan, Inc. |
| 24,192 |
|
950 |
| Baxter International, Inc. |
| 50,910 |
|
2,400 |
| Celgene Corp. (3) |
| 132,672 |
|
300 |
| C.R. Bard, Inc. |
| 25,278 |
|
2,300 |
| Genentech, Inc. (3) |
| 190,693 |
|
1,500 |
| Genzyme Corp. (3) |
| 99,555 |
|
2,200 |
| Gilead Sciences, Inc. (3) |
| 112,508 |
|
200 |
| Intuitive Surgical, Inc. (3) |
| 25,398 |
|
700 |
| Johnson & Johnson |
| 41,881 |
|
1,100 |
| Medtronic, Inc. |
| 34,562 |
|
1,700 |
| Thermo Fisher Scientific, Inc. |
| 57,919 |
|
|
|
|
| 875,623 |
|
Industrial Services (1.6%) |
|
|
| ||
1,000 |
| Noble Corp. |
| 22,060 |
|
2,000 |
| Schlumberger, Ltd. |
| 84,660 |
|
1,150 |
| Transocean, Inc. (3) |
| 54,337 |
|
|
|
|
| 161,057 |
|
Non-Energy Minerals (0.2%) |
|
|
| ||
650 |
| Allegheny Technologies, Inc. |
| 16,595 |
|
|
|
|
|
|
|
Process Industries (2.1%) |
|
|
| ||
1,150 |
| Air Products and Chemicals, Inc. |
| 57,811 |
|
1,000 |
| Ecolab, Inc. |
| 35,150 |
|
1,700 |
| Monsanto Co. |
| 119,595 |
|
|
|
|
| 212,556 |
|
14
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($)Name of Issuer | Market Value ($)(1) |
| |||
|
|
|
| ||
Producer Manufacturing (4.5%) |
|
|
| ||
2,900 |
| ABB, Ltd. |
| 43,529 |
|
1,400 |
| Deere & Co. |
| 53,648 |
|
1,300 |
| Emerson Electric Co. |
| 47,593 |
|
650 |
| General Dynamics Corp. |
| 37,434 |
|
4,200 |
| General Electric Co. |
| 68,040 |
|
700 |
| ITT Industries, Inc. |
| 32,193 |
|
800 |
| Lockheed Martin Corp. |
| 67,264 |
|
1,000 |
| The Boeing Co. |
| 42,670 |
|
900 |
| United Technologies Corp. |
| 48,240 |
|
|
|
|
| 440,611 |
|
Retail Trade (2.3%) |
|
|
| ||
3,700 |
| CVS/Caremark Corp. |
| 106,338 |
|
1,600 |
| Target Corp. |
| 55,248 |
|
1,200 |
| Wal-Mart Stores, Inc. |
| 67,272 |
|
|
|
|
| 228,858 |
|
Technology Services (4.0%) |
|
|
| ||
2,200 |
| Accenture Ltd. |
| 72,138 |
|
2,000 |
| Adobe Systems, Inc. (3) |
| 42,580 |
|
250 |
| Google, Inc. (3) |
| 76,913 |
|
3,500 |
| Microsoft Corp. |
| 68,040 |
|
6,300 |
| Oracle Corporation |
| 111,699 |
|
1,500 |
| Western Union Co. |
| 21,510 |
|
|
|
|
| 392,880 |
|
Transportation (0.9%) |
|
|
| ||
1,100 |
| Union Pacific Corp. |
| 52,580 |
|
625 |
| United Parcel Service, Inc. |
| 34,475 |
|
|
|
|
| 87,055 |
|
Utilities (1.0%) |
|
|
| ||
500 |
| Southern Co. |
| 18,500 |
|
2,000 |
| Equitable Resources, Inc. |
| 67,100 |
|
300 |
| Wisconsin Energy Corp. |
| 12,594 |
|
|
|
|
| 98,194 |
|
| |||||
Total common stocks |
| 5,333,884 |
| ||
(cost: $5,842,122) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Bonds (36.7%) (2) |
|
|
| ||
|
|
|
|
|
|
Asset-Backed Securities (6.6%) |
|
|
| ||
|
| Countrywide Home Loans: |
|
|
|
100,000 |
| 2006-S6 A3, 5.66%, 3/25/34 (6) |
| 42,693 |
|
25,000 |
| 2006-S6 A4, 5.80%, 3/25/34 (6) |
| 5,918 |
|
97,501 |
| 2006-S8 A2, 5.39%, 4/25/36 (6) |
| 47,997 |
|
80,347 |
| 2006-S9 A1, 5.45%, 8/25/36 (6) |
| 57,778 |
|
73,666 |
| 2006-S9 A6, 5.59%, 8/25/36 (6) |
| 27,856 |
|
7,871 |
| 2006-S10 A1, 5.43%, 10/25/36 (6) |
| 6,409 |
|
|
| GMAC Mortgage Corporation Loan Trust: |
|
|
|
190,000 |
| 2007-HE2 A4, 6.42%, 7/25/37 (6) |
| 26,399 |
|
|
|
|
|
|
|
Quantity/Par($)Name of Issuer | Market Value ($)(1) |
| |||
|
|
|
| ||
75,000 |
| 2007-HE2 A5, 6.55%, 7/25/37 (6) |
| 10,002 |
|
25,000 |
| 2006-A4, 6.09%, 10/25/36 (6) |
| 4,075 |
|
|
| Green Tree Financial Corp: |
|
|
|
24,333 |
| 1997-1 A6, 7.29%, 3/15/28 (6) |
| 20,152 |
|
26,612 |
| 1997-6 A10, 6.87%, 1/15/29 (6) |
| 21,338 |
|
27,001 |
| Indymac Mfg. Housing, |
|
|
|
|
| 1998-2 A2, 6.17%, 12/25/11 (6) |
| 21,962 |
|
|
| Origen Mfg. Housing: |
|
|
|
23,947 |
| 2001-A A5, 7.08%, 3/15/32 (6) |
| 24,439 |
|
16,098 |
| 2002-A A3, 6.17%, 5/15/23 (6) |
| 15,871 |
|
|
| Residential Funding: |
|
|
|
40,000 |
| 2003-HI2 A6, 4.76%, 7/25/28 (6) |
| 39,307 |
|
100,000 |
| 2006-HSA2 AI2, 5.50%, 3/25/36 (6) |
| 71,308 |
|
75,000 |
| 2006-HSA1 A4, 5.49%, 11/25/35 (6) |
| 12,468 |
|
50,000 |
| 2007-HI1 A3, 5.72%, 3/25/37 (6) |
| 37,514 |
|
75,000 |
| 2007-HSA2 A3, 5.75%, 12/25/25 (6) |
| 47,893 |
|
40,000 |
| 2006-HI2 A4, 6.20%, 2/25/36 (6) |
| 9,550 |
|
50,000 |
| Structured Asset Securities Corp. |
|
|
|
|
| 2005-4XS, 5.25%, 3/25/35 (6) |
| 26,299 |
|
75,000 |
| Volkswagen Auto Loan Enhanced Trust, |
|
|
|
|
| 2008-2 A3A, 5.47%, 3/20/13 |
| 73,777 |
|
|
|
|
| 651,005 |
|
Collateralized Mortgage Obligations (7.8%) |
| ||||
|
| Bank of America Funding Corp: |
| ||
48,846 |
| 2003-2 1A1, 6.50%, 6/25/32 (6) |
| 46,816 |
|
37,781 |
| 2005-5 A11, 5.50%, 9/25/35 (6) |
| 25,502 |
|
50,000 |
| 2006-7 A12, 6.00%, 9/25/36 (6) |
| 43,204 |
|
|
| Countrywide Alternative Loan Trust: |
| ||
6,559 |
| 2005-53T2 2A1, 6.00%, 11/25/35 (6) |
| 4,421 |
|
120,000 |
| 2005-24 A36, 5.50%, 11/25/35 (6) |
| 81,363 |
|
|
| Federal National Mtg. Association: |
| ||
22,736 |
| 5.50%, 5/25/25 |
| 23,363 |
|
30,117 |
| 4.00%, 5/25/33 |
| 30,264 |
|
100,000 |
| 5.50%, 4/25/35 |
| 101,281 |
|
33,665 |
| 7.00%, 2/25/44 |
| 35,170 |
|
29,971 |
| GSR Mortgage Loan Trust 2005-4F 5A2, |
|
|
|
|
| 6.00%, 5/25/35 (6) |
| 24,114 |
|
75,000 |
| JPALT 2006-S3, 6.12%, 8/25/36 (6) |
| 49,446 |
|
39,415 |
| Master Asset Securitization Trust |
|
|
|
|
| 2003-4 CA1, 8.00%, 5/25/18 (6) |
| 39,787 |
|
|
| Residential Funding Mtg. Securities: |
| ||
44,477 |
| 2005-S6 A2, 5.25%, 8/25/35 (6) |
| 29,590 |
|
95,468 |
| 2006-S3 A8, 5.50%, 03/25/36 (6) |
| 41,869 |
|
91,809 |
| Vendee Mtg. Tr., 2008-1 B, 8.21%, 3/15/25 |
| 99,612 |
|
28,116 |
| Washington Mutual Mtg. Pass-Through |
|
|
|
|
| 2002-S8, 5.25%, 1/25/18 (6) |
| 28,107 |
|
75,000 |
| Wells Fargo Mortgage Backed Securities |
|
|
|
|
| 2002-S8, 6.00%, 10/25/36 (6) |
| 60,613 |
|
|
|
|
| 764,522 |
|
|
|
See accompanying notes to portfolios of investments on page 46. | |
| |
| 15 |
|
|
|
|
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Corporate Bonds (8.7%) |
|
|
| ||
61,820 |
| America West Airlines, 7.93%, 1/2/19 (6) |
| 48,219 |
|
25,000 |
| Bank of NY Mellon MTN, 4.95%, 11/1/12 (6) |
| 25,382 |
|
50,000 |
| Bard (C.R.), Inc., 6.70%, 12/1/26 (6) |
| 50,104 |
|
100,000 |
| Continental Airlines, Inc., 6.56%, 2/15/12 (6) |
| 80,000 |
|
50,000 |
| JPM Chase Capital, 6.80%, 10/1/37 (6) |
| 46,069 |
|
100,000 |
| JP Morgan Chase & Co., 6.40%, 5/15/38 (6) |
| 118,296 |
|
300,000 |
| MBIA Insurance Co., 14.00%, 1/15/33 (6) |
| 153,000 |
|
35,000 |
| MBNA Bank, 6.63%, 6/15/12 (6) |
| 35,314 |
|
50,000 |
| Midamerican Energy Hldgs, 8.48%, 9/15/28 (6) |
| 53,452 |
|
91,524 |
| Procter & Gamble ESOP, 9.36%, 1/1/21 (6) |
| 113,533 |
|
50,000 |
| Prudential Financial, 7.77%, 8/10/18 (6) |
| 25,062 |
|
65,000 |
| Susa Partnership (GE), 7.45%, 7/1/18 (6) |
| 67,298 |
|
50,000 |
| Western Financial, 9.625%, 5/15/12 (6) |
| 49,261 |
|
|
|
|
|
| |
|
|
|
| 864,990 |
|
|
|
|
|
| |
Federal Home Loan Mortgage Corporation (2.8%) |
|
|
| ||
78,633 |
| 7.00%, 7/1/32 |
| 81,640 |
|
75,895 |
| 7.00%, 5/1/34 |
| 78,797 |
|
36,494 |
| 8.00%, 9/1/15 |
| 38,824 |
|
27,108 |
| 8.38%, 5/17/20 |
| 28,699 |
|
13,918 |
| 8.50%, 7/1/18 |
| 14,847 |
|
27,569 |
| 8.50%, 10/1/30 |
| 29,476 |
|
|
|
|
|
| |
|
|
|
| 272,283 |
|
|
|
|
|
| |
Federal National Mortgage Association (3.6%) |
|
|
| ||
44,708 |
| 7.00%, 5/1/32 |
| 46,866 |
|
79,953 |
| 7.15%, 10/1/30 |
| 84,211 |
|
15,737 |
| 7.50%, 6/1/32 |
| 16,732 |
|
56,588 |
| 7.50%, 4/1/33 |
| 59,393 |
|
15,802 |
| 8.00%, 12/1/27 |
| 16,729 |
|
54,599 |
| 8.00%, 2/1/31 |
| 57,992 |
|
28,859 |
| 8.47%, 4/15/26 |
| 31,007 |
|
14,660 |
| 9.50%, 5/1/27 |
| 16,254 |
|
6,590 |
| 9.75%, 1/1/13 |
| 7,243 |
|
5,475 |
| 10.25%, 6/15/13 |
| 6,104 |
|
11,923 |
| 11.00%, 12/1/12 |
| 13,298 |
|
|
|
|
|
| |
|
|
|
| 355,829 |
|
|
|
|
|
| |
Government National Mortgage Association (2.5%) |
|
|
| ||
45,083 |
| 7.00%, 12/15/24 |
| 48,061 |
|
94,270 |
| 8.00%, 7/15/24 |
| 100,621 |
|
78,238 |
| 8.375%, 3/15/31 |
| 84,152 |
|
1,335 |
| 9.00%, 6/15/11 |
| 1,431 |
|
210 |
| 9.00%, 6/15/09 |
| 215 |
|
6,253 |
| 9.00%, 11/15/16 |
| 6,684 |
|
905 |
| 9.50%, 5/20/16 |
| 979 |
|
1,409 |
| 9.50%, 9/20/18 |
| 1,525 |
|
470 |
| 11.25%, 10/15/11 |
| 524 |
|
|
|
|
|
| |
|
|
|
| 244,192 |
|
|
|
|
|
|
|
|
|
|
|
Quantity/Par($) Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
Taxable Municipal Securities (0.8%) |
|
| ||
100,000 |
| Academica School, 8.00%, 8/15/24 (6) |
| 77,470 |
2,000 |
| Bernalillo Multifamily, Series 1998A, |
| 2,101 |
|
|
|
| |
|
|
|
| 79,571 |
|
|
|
| |
U.S. Government / Federal Agency Securities (3.9%) |
|
| ||
200,000 |
| Bank of America, 1.70%, 12/23/10 |
| 200,593 |
|
| U.S. Treasury Strips, Zero Coupon: |
|
|
200,000 |
| 4.74% effective yield, 8/15/20 |
| 136,327 |
100,000 |
| 5.02% effective yield, 5/15/30 |
| 52,057 |
|
|
|
| |
|
|
|
| 388,977 |
|
|
|
| |
|
|
|
|
|
Total bonds |
| 3,621,369 | ||
|
| |||
(cost: $4,504,012) |
|
| ||
|
|
|
|
|
Closed-End Mutual Funds (3.4%) (2) |
|
| ||
6,309 |
| American Select Portfolio |
| 59,872 |
6,703 |
| American Strategic, Inc. Portfolio |
| 58,316 |
16,970 |
| American Strategic, Inc. Portfolio II |
| 143,397 |
8,409 |
| American Strategic, Inc. Portfolio III |
| 72,317 |
|
| |||
Total closed-end mutual funds |
| 333,902 | ||
|
| |||
(cost: $426,288) |
|
| ||
|
|
|
|
|
Short-Term Securities (5.3%) (2) |
|
| ||
526,000 |
| Sit Money Market Fund, 0.34% (4) |
| 526,000 |
|
|
|
| |
(cost: $526,000) |
|
| ||
|
|
|
|
|
Total investments in securities |
| $9,815,155 | ||
|
| |||
(cost: $11,298,422) (5) |
|
|
See accompanying notes to portfolios of investments on page 46.
16
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
This page has been left blank intentionally.
17
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
|
|
|
| Class I |
| Class S |
|
|
|
|
|
Net Asset Value |
|
|
|
|
|
|
|
|
|
12/31/08: |
| $9.24 Per Share |
| $9.23 Per Share |
|
|
|
|
|
6/30/08: |
| $13.11 Per Share |
| $13.08 Per Share |
|
|
|
|
|
Total Net Assets |
| $27.3 Million |
| $6.2 Million |
|
|
|
|
|
Weighted Average Market Cap: $53.7 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
18
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class |
| S&P 500 |
| Class |
| S&P 500 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 Month** |
| -19.13 | % | -21.94 | % |
| -19.10 | % | -21.94 | % |
|
| 6 Month** |
| -24.99 |
| -28.48 |
|
| -25.08 |
| -28.48 |
|
|
| 1 Year |
| -29.60 |
| -37.00 |
|
| -29.77 |
| -37.00 |
|
|
| 3 Year |
| -2.04 |
| -8.36 |
|
| n/a |
| n/a |
|
|
| 5 Year |
| 2.67 |
| -2.19 |
|
| n/a |
| n/a |
|
|
| Inception*** |
| 2.67 |
| -2.19 |
|
| -4.55 |
| -10.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CUMULATIVE TOTAL RETURNS* |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class |
| S&P 500 |
| Class |
| S&P 500 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Year |
| -29.60 | % | -37.00 | % |
| -29.77 | % | -37.00 | % |
|
| 3 Year |
| -5.99 |
| -23.04 |
|
| n/a |
| n/a |
|
|
| 5 Year |
| 14.08 |
| -10.48 |
|
| n/a |
| n/a |
|
|
| Inception*** |
| 14.08 |
| -10.48 |
|
| -12.06 |
| -26.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *As of 12/31/08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| **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 12/31/08 would have grown to $11,408 in the Fund or declined to $8,952 in the S&P 500 Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
1. | Verizon Communications, Inc. | |
2. | Johnson & Johnson, Inc. | |
3. | Procter & Gamble Co. | |
4. | Chevron Corp. | |
5. | Occidental Petroleum Corp. | |
6. | Microsoft Corp. | |
7. | Intl Business Machines Corp. | |
8. | Total SA | |
9. | Colgate-Palmolive Co. | |
10. | PartnerRe Ltd. | |
|
| Total Number of Holdings: 97 |
19
|
|
|
|
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (99.1%) (2) |
|
|
| ||
|
|
|
|
|
|
Communications (4.8%) |
|
|
| ||
11,200 |
| Rogers Communications, Inc. |
| 336,896 |
|
3,800 |
| Telefonica S.A. |
| 256,082 |
|
30,200 |
| Verizon Communications, Inc. |
| 1,023,780 |
|
|
|
|
| 1,616,758 |
|
Consumer Durables (0.7%) |
|
|
| ||
14,300 |
| Mattel, Inc. |
| 228,800 |
|
|
|
|
|
|
|
Consumer Non-Durables (13.3%) |
|
|
| ||
9,500 |
| Colgate-Palmolive Co. |
| 651,130 |
|
9,100 |
| Diageo p.l.c. |
| 516,334 |
|
8,600 |
| General Mills, Inc. |
| 522,450 |
|
7,600 |
| Kimberly-Clark Corp. |
| 400,824 |
|
5,100 |
| NIKE, Inc. |
| 260,100 |
|
11,100 |
| PepsiCo, Inc. |
| 607,947 |
|
12,400 |
| Philip Morris International, Inc. |
| 539,524 |
|
15,600 |
| Procter & Gamble Co. |
| 964,392 |
|
|
|
|
| 4,462,701 |
|
Consumer Services (2.4%) (2) |
|
|
| ||
8,300 |
| McDonald’s Corp. |
| 516,177 |
|
28,600 |
| Pearson, A.D.R. |
| 272,844 |
|
|
|
|
| 789,021 |
|
Electronic Technology (7.7%) |
|
|
| ||
11,500 |
| Analog Devices, Inc. |
| 218,730 |
|
28,100 |
| Applied Materials, Inc. |
| 284,653 |
|
41,200 |
| Intel Corp. |
| 603,992 |
|
8,200 |
| International Business Machines Corp. |
| 690,112 |
|
14,800 |
| Qualcomm, Inc. |
| 530,284 |
|
13,600 |
| Xilinx, Inc. |
| 242,352 |
|
|
|
|
| 2,570,123 |
|
Energy Minerals (10.2%) |
|
|
| ||
19,350 |
| Atlas Energy Resources, LLC |
| 247,099 |
|
11,100 |
| Chevron Corp. |
| 821,067 |
|
18,400 |
| Marathon Oil Corp. |
| 503,424 |
|
13,000 |
| Occidental Petroleum Corp. |
| 779,870 |
|
5,200 |
| Sasol, A.D.R. |
| 157,716 |
|
11,900 |
| Total S.A. |
| 658,070 |
|
7,475 |
| XTO Energy, Inc. |
| 263,643 |
|
|
|
|
| 3,430,889 |
|
Finance (18.8%) |
|
|
| ||
10,000 |
| ACE, Ltd. |
| 529,200 |
|
10,300 |
| AllianceBernstein Holding, LP |
| 214,137 |
|
6,600 |
| Aon Corp. |
| 301,488 |
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) | ||
|
|
|
|
|
14,500 |
| Apollo Investment Corp. |
| 134,995 |
11,600 |
| Aspen Insurance Holdings, Ltd. |
| 281,300 |
8,600 |
| Bank of New York Mellon Corp. |
| 243,638 |
24,600 |
| Citigroup, Inc. |
| 165,066 |
3,800 |
| Franklin Resources, Inc. |
| 242,364 |
11,400 |
| HCC Insurance Holdings, Inc. |
| 304,950 |
14,900 |
| Invesco, Ltd. |
| 215,156 |
10,950 |
| J.P. Morgan Chase & Co. |
| 345,254 |
5,400 |
| Marsh & McLennan Companies, Inc. |
| 131,058 |
7,100 |
| MetLife, Inc. |
| 247,506 |
19,500 |
| New York Community Bancorp, Inc. |
| 233,220 |
9,100 |
| PartnerRe, Ltd. |
| 648,557 |
11,400 |
| TCF Financial Corp. |
| 155,724 |
8,400 |
| The Travelers Companies, Inc. |
| 379,680 |
16,400 |
| U.S. Bancorp |
| 410,164 |
14,100 |
| Validus Holdings, Ltd. |
| 368,856 |
18,400 |
| Wells Fargo & Co. |
| 542,432 |
6,600 |
| Zenith National Insurance Corp. |
| 208,362 |
|
|
|
| 6,303,107 |
Health Services (3.0%) |
|
| ||
7,800 |
| McKesson Corp. |
| 302,094 |
4,500 |
| Owens & Minor, Inc. |
| 169,425 |
10,500 |
| Pharmaceutical Product Dev., Inc. |
| 304,605 |
5,300 |
| Quality Systems, Inc. |
| 231,186 |
|
|
|
| 1,007,310 |
Health Technology (12.1%) |
|
| ||
11,800 |
| Abbott Laboratories |
| 629,766 |
8,600 |
| Baxter International, Inc. |
| 460,874 |
9,200 |
| Becton, Dickinson & Co. |
| 629,188 |
3,200 |
| C.R. Bard, Inc. |
| 269,632 |
6,750 |
| Eli Lilly and Co. |
| 271,822 |
16,400 |
| Johnson & Johnson, Inc. |
| 981,212 |
11,100 |
| Medtronic, Inc. |
| 348,762 |
6,000 |
| Novartis AG, A.D.R. |
| 298,560 |
12,700 |
| PerkinElmer, Inc. |
| 176,657 |
|
|
|
| 4,066,473 |
Industrial Services (2.0%) |
|
| ||
5,200 |
| Diamond Offshore Drilling, Inc. |
| 306,488 |
11,700 |
| Halliburton Co. |
| 212,706 |
4,300 |
| Lufkin Industries, Inc. |
| 148,350 |
|
|
|
| 667,544 |
20
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Non-Energy Minerals (0.9%) |
|
|
| ||
5,000 |
| BHP Billiton, Ltd. |
| 214,500 |
|
1,800 |
| Nucor Corp. |
| 83,160 |
|
|
|
|
| 297,660 |
|
Process Industries (0.5%) |
|
|
| ||
3,400 |
| CF Industries Holdings, Inc. |
| 167,144 |
|
Producer Manufacturing (8.1%) |
|
|
| ||
21,500 |
| ABB, Ltd., A.D.R. |
| 322,715 |
|
11,700 |
| Deere & Co. |
| 448,344 |
|
6,900 |
| Emerson Electric Co. |
| 252,609 |
|
3,400 |
| General Dynamics Corp. |
| 195,806 |
|
30,400 |
| General Electric Co. |
| 492,480 |
|
4,500 |
| Lockheed Martin Corp. |
| 378,360 |
|
5,300 |
| Teleflex, Inc. |
| 265,530 |
|
7,100 |
| United Technologies Corp. |
| 380,560 |
|
|
|
|
| 2,736,404 |
|
Retail Trade (3.0%) |
|
|
| ||
7,600 |
| Best Buy Co., Inc. |
| 213,636 |
|
10,300 |
| The Cato Corp. |
| 155,530 |
|
3,200 |
| Costco Wholesale Corp. |
| 168,000 |
|
7,800 |
| Target Corp. |
| 269,334 |
|
10,400 |
| TJX Co |
| 213,928 |
|
|
|
|
| 1,020,428 |
|
Technology Services (4.2%) |
|
|
| ||
11,100 |
| Accenture, Ltd. |
| 363,969 |
|
4,200 |
| Automatic Data Processing, Inc. |
| 165,228 |
|
37,600 |
| Microsoft Corp. |
| 730,944 |
|
7,022 |
| Syntel, Inc. |
| 162,349 |
|
|
|
|
| 1,422,490 |
|
Transportation (3.6%) |
|
|
| ||
3,900 |
| C.H. Robinson Worldwide |
| 214,617 |
|
7,800 |
| Expeditors Intl. of Washington, Inc. |
| 259,506 |
|
10,100 |
| Union Pacific Corp. |
| 482,780 |
|
4,350 |
| United Parcel Service, Inc. |
| 239,946 |
|
|
|
|
| 1,196,849 |
|
|
|
|
|
|
|
Quantity Name of Issuer |
|
| Market Value ($)(1) | ||
|
|
|
|
|
|
Utilities (3.8%) |
|
|
| ||
11,000 |
| Energy Transfer Equity, LP |
|
| 178,310 |
8,700 |
| Equitable Resources, Inc. |
|
| 291,885 |
7,000 |
| Exelon Corp. |
|
| 389,270 |
10,700 |
| Holly Energy Partners |
|
| 228,445 |
9,100 |
| MarkWest Energy Partners, LP |
|
| 72,618 |
2,800 |
| Wisconsin Energy Corp. |
|
| 117,544 |
|
|
|
|
| 1,278,072 |
|
|
|
|
|
|
Total common stocks |
|
| 33,261,773 | ||
|
|
|
|
|
|
Convertible Bonds (0.3%) (2) |
|
|
| ||
375,000 |
| Flotek Industries, 5.25%, 2/15/28 |
|
| 94,219 |
|
|
|
|
|
|
(cost: $375,557) |
|
|
| ||
|
|
|
| ||
Closed-End Mutual Funds (0.7%) (2) |
|
|
| ||
14,650 |
| Kayne Anderson MLP Invest. Co. |
|
| 238,795 |
|
|
|
| ||
(cost: $339,053) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities (0.0%) (2) |
|
|
| ||
1,000 |
| Sit Money Market Fund, 0.34% (4) |
|
| 1,000 |
|
|
|
| ||
(cost: $1,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
| $ | 33,595,787 |
See accompanying notes to portfolios of investments on page 46.
21
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Raymond E. Sit, Michael J. Stellmacher, Tasha M. Murdoff |
|
|
|
|
|
|
|
|
The Sit Global Dividend Growth Fund Class I posted a -5.25% total return for the last three months of 2008, outperforming the -21.11% return for the Composite Index. The Fund began on September 30, 2008, a tumultuous time in the global equity market.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Global Dividend Growth Fund is to provide current income that exceeds the dividend yield of a composite index (comprised of 60% S&P 500 Index and 40% MSCI EAFE 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 |
|
|
|
|
|
|
|
|
|
12/31/08: |
| $9.44 Per Share |
| $9.44 Per Share |
|
|
|
|
|
9/30/08: |
| $10.00 Per Share |
| $10.00 Per Share |
|
|
|
|
|
Total Net Assets |
| $1.3 Million |
| $0.7 Million |
|
|
|
|
|
Weighted Average Market Cap: $53.6 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
22
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
|
| 3 Month ** |
| 6 Month ** |
| Since | ||||
|
|
|
|
|
|
|
|
|
| ||
Class I |
| -5.25 | % |
| n/a |
|
| -5.25 | % | ||
Class S |
| -5.31 | % |
| n/a |
|
| -5.31 | % | ||
Composite Index(1) |
| -21.11 | % |
| n/a |
|
| -21.11 | % | ||
S&P 500 |
| -21.94 | % |
| n/a |
|
| -21.94 | % | ||
MSCI EAFE Index(3) |
| -19.95 | % |
| n/a |
|
| -19.95 | % | ||
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
| 3 Month ** |
| 6 Month ** |
| Since | ||||
|
|
|
|
|
|
|
|
|
| ||
Class I |
| -5.25 | % |
| n/a |
|
| -5.25 | % | ||
Class S |
| -5.31 | % |
| n/a |
|
| -5.31 | % | ||
Composite Index(1) |
| -21.11 | % |
| n/a |
|
| -21.11 | % | ||
S&P 500 |
| -21.94 | % |
| n/a |
|
| -21.94 | % | ||
MSCI EAFE Index(3) |
| -19.95 | % |
| n/a |
|
| -19.95 | % | ||
|
|
|
|
|
|
|
| ||||
**Not annualized. |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Composite Index comprised of 60% S&P 500 Index and 40% MSCI EAFE Index. |
(2) | An unmanaged index which measures the performance of 500 widely held common stocks of large-cap companies. |
(3) | A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The index currently comprises 21 developed market country indices. |
|
GROWTH OF $10,000 |
The sum of $10,000 invested at inception (9/30/08) and held until 12/31/08 would have declined to $9,475 in the Fund’s Class I, $7,889 in the Composite Index, $7,806 in the S&P 500 Index, or $8,005 in the MSCI EAFE Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | iShares MSCI Japan |
| 2. | Procter & Gamble Co. |
| 3. | Abbott Laboratories |
| 4. | Johnson & Johnson |
| 5. | Telefonica, A.D.R. |
| 6. | Pepsico, Inc. |
| 7. | Marathon Oil Corp. |
| 8. | Occidental Petroleum Corp. |
| 9. | Pearson, A.D.R. |
| 10. | Wells Fargo & Co. |
|
| Total Number of Holdings: 100 |
23
|
|
|
|
|
| Sit Global Dividend Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (87.8%) (2) |
|
|
| ||
|
|
|
|
|
|
Asia (5.5%) |
|
|
| ||
Australia (1.9%) |
|
|
| ||
500 |
| BHP Billiton, A.D.R. (Non-Energy Minerals) |
| 21,450 |
|
180 |
| Rio Tinto, A.D.R. (Non-Energy Minerals) |
| 16,004 |
|
|
|
|
| 37,454 |
|
Hong Kong / China (1.2%) |
|
|
| ||
500 |
| HSBC Holdings, p.l.c. (Finance) |
| 24,335 |
|
Japan (2.4%) |
|
|
| ||
400 |
| AFLAC, Inc., A.D.R. (Finance) |
| 18,336 |
|
625 |
| Canon, Inc., A.D.R. (Electronic Tech.) |
| 19,625 |
|
1,500 |
| Mitsubishi UFJ Financial Group, Inc., A.D.R. (Finance) |
| 9,315 |
|
|
|
|
| 47,276 |
|
Europe (24.9%) |
|
|
| ||
France (4.3%) |
|
|
| ||
400 |
| AXA, A.D.R. (Finance) |
| 8,988 |
|
600 |
| Schlumberger, A.D.R. (Industrial Svcs.) |
| 25,398 |
|
450 |
| Total, A.D.R. (Energy Minerals) |
| 24,885 |
|
775 |
| Veolia Environment, A.D.R. (Utilities) |
| 24,575 |
|
|
|
|
| 83,846 |
|
Germany (1.2%) |
|
|
| ||
350 |
| SAP AG, A.D.R. (Tech. Services) |
| 12,677 |
|
150 |
| Siemens AG, A.D.R. (Producer Mfg.) |
| 11,362 |
|
|
|
|
| 24,039 |
|
Italy (1.9%) |
|
|
| ||
3,400 |
| Enel S.P.A. (Utilities) |
| 21,901 |
|
700 |
| Tenaris, A.D.R. (Industrial Services) |
| 14,686 |
|
|
|
|
| 36,587 |
|
Netherlands (1.6%) |
|
|
| ||
1,100 |
| ING Groep, A.D.R. (Finance) |
| 12,210 |
|
1,000 |
| Philips Electronics, A.D.R. (Cons. Durables) |
| 19,870 |
|
|
|
|
| 32,080 |
|
Spain (1.5%) |
|
|
| ||
450 |
| Telefonica, A.D.R. (Communications) |
| 30,326 |
|
Sweden (1.0%) |
|
|
| ||
2,500 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 19,525 |
|
Switzerland (6.0%) |
|
|
| ||
600 |
| ABB, Ltd., A.D.R. (Producer Manufacturing) |
| 9,006 |
|
475 |
| ACE, Ltd., A.D.R. (Finance) |
| 25,137 |
|
450 |
| Credit Suisse Group, A.D.R. (Finance) |
| 12,717 |
|
125 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 8,096 |
|
744 |
| Nestle, S.A. (Consumer Non-Durables) |
| 29,461 |
|
300 |
| Novartis, A.D.R. (Health Tech.) |
| 14,928 |
|
125 |
| Roche Holdings, A.G. (Health Tech.) |
| 19,352 |
|
|
|
|
| 118,697 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
United Kingdom (7.4%) |
|
|
| ||
425 |
| BP, A.D.R. (Energy Minerals) |
| 19,865 |
|
|
| British American Tobacco p.l.c. |
|
|
|
347 |
| (Consumer Non-Durables) |
| 9,052 |
|
450 |
| Diageo, A.D.R. (Consumer Non-Durables) |
| 25,533 |
|
350 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 13,044 |
|
3,100 |
| Pearson, A.D.R. (Consumer Services) |
| 29,574 |
|
375 |
| Royal Dutch Shell, A.D.R. (Energy Minerals) |
| 19,286 |
|
2,850 |
| Tesco, p.l.c. (Retail Trade) |
| 14,840 |
|
675 |
| Vodafone Group, p.l.c. (Communications) |
| 13,797 |
|
|
|
|
| 144,991 |
|
North America (57.4%) |
|
|
| ||
Bermuda (3.2%) |
|
|
| ||
550 |
| Accenture, Ltd. (Technology Services) |
| 18,035 |
|
300 |
| PartnerRe, Ltd. (Finance) |
| 21,381 |
|
900 |
| Validus Holdings, Ltd. (Finance) |
| 23,544 |
|
|
|
|
| 62,960 |
|
Canada (1.0%) |
|
|
| ||
650 |
| Rogers Communications, Inc. (Communications) |
| 19,552 |
|
|
|
|
|
|
|
United States (53.2%) |
|
|
| ||
|
|
|
|
|
|
Communications (1.8%) |
|
|
| ||
425 |
| AT&T, Inc. |
| 12,112 |
|
700 |
| Verizon Communications, Inc. |
| 23,730 |
|
|
|
|
| 35,842 |
|
Consumer Non-Durables (8.3%) |
|
|
| ||
375 |
| Colgate-Palmolive Co. |
| 25,703 |
|
300 |
| General Mills, Inc. |
| 18,225 |
|
350 |
| Kimberly-Clark Corp. |
| 18,459 |
|
550 |
| PepsiCo, Inc. |
| 30,124 |
|
550 |
| Philip Morris International, Inc. |
| 23,931 |
|
625 |
| Procter & Gamble Co. |
| 38,638 |
|
150 |
| VF Corp. |
| 8,215 |
|
|
|
|
| 163,295 |
|
Consumer Services (0.6%) |
|
|
| ||
200 |
| McDonald’s Corp. |
| 12,438 |
|
Electronic Technology (4.1%) |
|
|
| ||
500 |
| Analog Devices, Inc. |
| 9,510 |
|
850 |
| Applied Materials, Inc. |
| 8,611 |
|
1,450 |
| Intel Corp. |
| 21,257 |
|
300 |
| International Business Machines Corp. |
| 25,248 |
|
450 |
| Qualcomm, Inc. |
| 16,124 |
|
|
|
|
| 80,750 |
|
24
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Energy Minerals (5.5%) |
|
|
| ||
700 |
| Atlas Energy Resources, LLC |
| 8,939 |
|
225 |
| Chevron Corp. |
| 16,643 |
|
1,100 |
| Marathon Oil Corp. |
| 30,096 |
|
200 |
| Murphy Oil Corp. |
| 8,870 |
|
500 |
| Occidental Petroleum Corp. |
| 29,995 |
|
400 |
| XTO Energy, Inc. |
| 14,108 |
|
|
|
|
| 108,651 |
|
Finance (8.9%) |
|
|
| ||
800 |
| AllianceBernstein Holding, LP |
| 16,632 |
|
550 |
| Bank of New York Mellon Corp. |
| 15,581 |
|
150 |
| Franklin Resources, Inc. |
| 9,567 |
|
700 |
| HCC Insurance Holdings, Inc. |
| 18,725 |
|
800 |
| J.P. Morgan Chase & Co. |
| 25,224 |
|
800 |
| Marsh & McLennan Companies, Inc. |
| 19,416 |
|
200 |
| MetLife, Inc. |
| 6,972 |
|
800 |
| U.S. Bancorp |
| 20,008 |
|
1,000 |
| Wells Fargo & Co. |
| 29,480 |
|
450 |
| Zenith National Insurance Corp. |
| 14,206 |
|
|
|
|
| 175,811 |
|
Health Services (0.6%) |
|
|
| ||
300 |
| McKesson Corp. |
| 11,619 |
|
Health Technology (7.7%) |
|
|
| ||
650 |
| Abbott Laboratories |
| 34,691 |
|
425 |
| Baxter International, Inc. |
| 22,776 |
|
350 |
| Becton, Dickinson & Co. |
| 23,937 |
|
475 |
| Eli Lilly and Co. |
| 19,128 |
|
525 |
| Johnson & Johnson, Inc. |
| 31,411 |
|
425 |
| Medtronic, Inc. |
| 13,353 |
|
475 |
| PerkinElmer, Inc. |
| 6,607 |
|
|
|
|
| 151,903 |
|
Industrial Services (0.3%) |
|
|
| ||
100 |
| Diamond Offshore Drilling, Inc. |
| 5,894 |
|
Process Industries (1.2%) |
|
|
| ||
350 |
| Monsanto Co. |
| 24,623 |
|
Producer Manufacturing (5.5%) |
|
|
| ||
350 |
| Caterpillar, Inc. |
| 15,635 |
|
350 |
| Deere & Co. |
| 13,412 |
|
150 |
| General Dynamics Corp. |
| 8,638 |
|
1,550 |
| General Electric Co. |
| 25,110 |
|
175 |
| ITT Corp. |
| 8,048 |
|
250 |
| Lockheed Martin Corp. |
| 21,020 |
|
300 |
| United Technologies Corp. |
| 16,080 |
|
|
|
|
| 107,943 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Retail Trade (2.3%) |
|
|
| ||
150 |
| Costco Wholesale Corp. |
| 7,875 |
|
400 |
| CVS Caremark Corp. |
| 11,496 |
|
450 |
| Target Corp. |
| 15,538 |
|
475 |
| TJX Co. |
| 9,771 |
|
|
|
|
| 44,680 |
|
Technology Services (1.2%) |
|
|
| ||
1,250 |
| Microsoft Corp. |
| 24,300 |
|
|
|
|
|
|
|
Transportation (2.6%) |
|
|
| ||
250 |
| C.H. Robinson Worldwide, Inc. |
| 13,757 |
|
500 |
| Union Pacific Corp. |
| 23,900 |
|
250 |
| United Parcel Service, Inc. |
| 13,790 |
|
|
|
|
| 51,447 |
|
Utilities (2.6%) |
|
|
| ||
700 |
| Energy Transfer Equity, LP |
| 11,347 |
|
525 |
| Equitable Resources, Inc. |
| 17,614 |
|
300 |
| Exelon Corp. |
| 16,683 |
|
650 |
| MarkWest Energy Partners, LP |
| 5,187 |
|
|
|
|
| 50,831 |
|
|
|
|
|
|
|
Total common stocks for United States |
| 1,050,027 |
| ||
|
|
|
|
|
|
Total common stocks |
| 1,731,695 |
| ||
|
|
|
|
|
|
Exchange Traded Funds (2.5%) (2) |
|
|
| ||
5,100 |
| iShares MSCI Japan |
| 48,960 |
|
(cost: $46,992) |
|
|
| ||
|
|
|
|
|
|
Closed-End Mutual Funds (1.1%) (2) |
|
|
| ||
1,350 |
| Kayne Anderson MLP Invest. Co. |
| 22,005 |
|
(cost: $18,584) |
|
|
| ||
|
|
|
|
|
|
Short Term Securities (13.9%) (2) |
|
|
| ||
275,000 |
| Sit Money Market Fund, 0.34% (4) |
| 275,000 |
|
(cost: $275,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $2,130,801) (5) |
| $ 2,077,660 |
|
See accompanying notes to portfolios of investments on page 46.
25
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Ronald D. Sit, and Michael J. Stellmacher |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/08: |
| $30.09 Per Share |
|
|
|
6/30/08: |
| $43.41 Per Share |
|
|
|
Total Net Assets: |
| $236.1 Million |
|
|
|
Weighted Average Market Cap: |
| $60.9 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
26
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||
|
|
|
|
|
|
|
| |||
|
| Sit Large |
| Russell |
| Russell |
| |||
|
|
|
|
|
|
|
|
|
|
|
3 Month** |
| -21.13 | % |
| -22.79 | % |
| -22.48 | % |
|
6 Month** |
| -30.18 |
|
| -32.31 |
|
| -29.73 |
|
|
1 Year |
| -34.10 |
|
| -38.44 |
|
| -37.60 |
|
|
5 Year |
| 0.37 |
|
| -3.42 |
|
| -2.04 |
|
|
10 Year |
| -2.93 |
|
| -4.27 |
|
| -1.09 |
|
|
Inception*** |
| 8.99 |
|
| 9.42 |
|
| 10.74 |
|
|
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CUMULATIVE TOTAL RETURNS* |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Large |
| Russell |
| Russell |
| |||
|
|
|
|
|
|
|
|
|
|
|
1 Year |
| -34.10 | % |
| -38.44 | % |
| -37.60 | % |
|
5 Year |
| 1.86 |
|
| -15.99 |
|
| -9.78 |
|
|
10 Year |
| -25.76 |
|
| -35.38 |
|
| -10.37 |
|
|
Inception*** |
| 866.40 |
|
| 972.38 |
|
| 1370.58 |
|
|
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*As of 12/31/08 |
| **Not annualized. |
| |||||||
|
|
|
|
|
|
(1) | An unmanaged index that measures the performance of those Russell 1000 companies (the largest 1,000 U.S. companies by capitalization) with higher price-to-book ratios and higher forecasted growth values. |
(2) | An unmanaged index that measures the performance of the 1,000 largest companies in the Russell 3000® Index (the largest 3,000 U.S. companies based on total market capitalization). |
|
GROWTH OF $10,000 |
The sum of $10,000 invested on 12/31/98 and held until 12/31/08 would have declined to $7,424 in the Fund or $6,462 in the Russell 1000® Growth Index.
|
TOP 10 HOLDINGS |
|
|
|
1. |
| McDonald’s Corp. |
2. |
| Procter & Gamble Co. |
3. |
| Genentech, Inc. |
4. |
| Verizon Communications, Inc. |
5. |
| Intl Business Machines Corp. |
6. |
| Pepsico, Inc. |
7. |
| Coca-Cola Co. |
8. |
| Occidental Petroleum Corp. |
9. |
| Monsanto Co. |
10. |
| Celgene Corp. |
|
| Total Number of Holdings: 92 |
27
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Common Stocks (86.2%) (2) |
|
|
| ||
| |||||
Communications (3.8%) |
|
|
| ||
44,400 |
| AT&T, Inc. |
| 1,265,400 |
|
73,500 |
| Rogers Communications, Inc. |
| 2,210,880 |
|
159,200 |
| Verizon Communications, Inc. |
| 5,396,880 |
|
|
|
|
| 8,873,160 |
|
Consumer Durables (0.3%) |
|
|
| ||
84,200 |
| Activision Blizzard, Inc. (3) |
| 727,488 |
|
Consumer Non-Durables (10.0%) |
|
|
| ||
106,800 |
| Coca-Cola Co. |
| 4,834,836 |
|
46,000 |
| Colgate-Palmolive Co. |
| 3,152,840 |
|
29,700 |
| NIKE, Inc. |
| 1,514,700 |
|
89,500 |
| PepsiCo, Inc. |
| 4,901,915 |
|
61,700 |
| Philip Morris International, Inc. |
| 2,684,567 |
|
88,700 |
| Procter & Gamble Co. |
| 5,483,434 |
|
20,000 |
| VF Corp. |
| 1,095,400 |
|
|
|
|
| 23,667,692 |
|
Consumer Services (4.3%) |
|
|
| ||
43,150 |
| Comcast Corp. |
| 728,372 |
|
95,600 |
| McDonald’s Corp. |
| 5,945,364 |
|
92,100 |
| News Corp. |
| 837,189 |
|
50,700 |
| Visa, Inc. |
| 2,659,215 |
|
|
|
|
| 10,170,140 |
|
Electronic Technology (10.7%) |
|
|
| ||
40,600 |
| Analog Devices, Inc. |
| 772,212 |
|
24,800 |
| Apple Computer, Inc. (3) |
| 2,116,680 |
|
212,200 |
| Applied Materials, Inc. |
| 2,149,586 |
|
68,000 |
| Broadcom Corp. (3) |
| 1,153,960 |
|
256,400 |
| Cisco Systems, Inc. (3) |
| 4,179,320 |
|
71,700 |
| Corning, Inc. |
| 683,301 |
|
92,400 |
| EMC Corp. (3) |
| 967,428 |
|
260,400 |
| Intel Corp. |
| 3,817,464 |
|
58,500 |
| IBM Corp. |
| 4,923,360 |
|
122,200 |
| Qualcomm, Inc. |
| 4,378,426 |
|
|
|
|
| 25,141,737 |
|
Energy Minerals (7.4%) |
|
|
| ||
24,800 |
| Exxon Mobil Corp. |
| 1,979,784 |
|
34,300 |
| Murphy Oil Corp. |
| 1,521,205 |
|
79,300 |
| Occidental Petroleum Corp. |
| 4,757,207 |
|
132,900 |
| Southwestern Energy Co. (3) |
| 3,850,113 |
|
30,500 |
| Suncor Energy, Inc. |
| 594,750 |
|
56,600 |
| Ultra Petroleum Corp. (3) |
| 1,953,266 |
|
80,382 |
| XTO Energy, Inc. |
| 2,835,072 |
|
|
|
|
| 17,491,397 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Finance (9.4%) |
|
|
| ||
29,600 |
| Aon Corp. |
| 1,352,128 |
|
112,000 |
| Bank of New York Mellon Corp. |
| 3,172,960 |
|
94,000 |
| Citigroup, Inc. |
| 630,740 |
|
5,400 |
| CME Group, Inc. |
| 1,123,794 |
|
27,700 |
| Franklin Resources, Inc. |
| 1,766,706 |
|
103,100 |
| J.P. Morgan Chase & Co. |
| 3,250,743 |
|
36,350 |
| MetLife, Inc. |
| 1,267,161 |
|
32,600 |
| PartnerRe, Ltd. |
| 2,323,402 |
|
40,700 |
| The Travelers Companies, Inc. |
| 1,839,640 |
|
13,600 |
| The Goldman Sachs Group, Inc. |
| 1,147,704 |
|
67,400 |
| U.S. Bancorp |
| 1,685,674 |
|
90,000 |
| Wells Fargo & Co. |
| 2,653,200 |
|
|
|
|
| 22,213,852 |
|
Health Services (2.0%) |
|
|
| ||
28,000 |
| McKesson Corp. |
| 1,084,440 |
|
67,300 |
| Medco Health Solutions, Inc. (3) |
| 2,820,543 |
|
32,300 |
| UnitedHealth Group, Inc. |
| 859,180 |
|
|
|
|
| 4,764,163 |
|
Health Technology (13.4%) |
|
|
| ||
57,700 |
| Abbott Laboratories |
| 3,079,449 |
|
32,800 |
| Allergan, Inc. |
| 1,322,496 |
|
12,500 |
| C.R. Bard, Inc. |
| 1,053,250 |
|
37,400 |
| Baxter International, Inc. |
| 2,004,266 |
|
83,100 |
| Celgene Corp. (3) |
| 4,593,768 |
|
66,100 |
| Genentech, Inc. (3) |
| 5,480,351 |
|
58,800 |
| Genzyme Corp. (3) |
| 3,902,556 |
|
77,500 |
| Gilead Sciences, Inc. (3) |
| 3,963,350 |
|
8,100 |
| Intuitive Surgical, Inc. (3) |
| 1,028,619 |
|
29,550 |
| Johnson & Johnson |
| 1,767,977 |
|
42,300 |
| Medtronic, Inc. |
| 1,329,066 |
|
61,200 |
| Thermo Fisher Scientific, Inc. (3) |
| 2,085,084 |
|
|
|
|
| 31,610,232 |
|
Industrial Services (3.3%) |
|
|
| ||
34,100 |
| Noble Corp. |
| 752,246 |
|
78,600 |
| Schlumberger, Ltd. |
| 3,327,138 |
|
63,300 |
| Smith International, Inc. |
| 1,448,937 |
|
46,300 |
| Transocean, Inc. (3) |
| 2,187,675 |
|
|
|
|
| 7,715,996 |
|
Non-Energy Minerals (0.2%) |
|
|
| ||
19,600 |
| Allegheny Technologies, Inc. |
| 500,388 |
|
28
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Process Industries (3.5%) |
|
|
| ||
37,300 |
| Air Products and Chemicals, Inc. |
| 1,875,071 |
|
49,700 |
| Ecolab, Inc. |
| 1,746,955 |
|
66,800 |
| Monsanto Co. |
| 4,699,380 |
|
|
|
|
| 8,321,406 |
|
Producer Manufacturing (5.2%) |
|
|
| ||
80,900 |
| ABB, Ltd., A.D.R. |
| 1,214,309 |
|
49,100 |
| Deere & Co. |
| 1,881,512 |
|
51,500 |
| Emerson Electronic Co. |
| 1,885,415 |
|
122,000 |
| General Electric Co. |
| 1,976,400 |
|
20,800 |
| ITT Corp. |
| 956,592 |
|
30,000 |
| Lockheed Martin Corp. |
| 2,522,400 |
|
33,800 |
| United Technologies Corp. |
| 1,811,680 |
|
|
|
|
| 12,248,308 |
|
Retail Trade (3.5%) |
|
|
| ||
126,700 |
| CVS/Caremark Corp. |
| 3,641,358 |
|
57,100 |
| Target Corp. |
| 1,971,663 |
|
47,300 |
| Wal-Mart Stores, Inc. |
| 2,651,638 |
|
|
|
|
| 8,264,659 |
|
Technology Services (6.1%) |
|
|
| ||
79,600 |
| Accenture, Ltd. |
| 2,610,084 |
|
64,900 |
| Adobe Systems, Inc. (3) |
| 1,381,721 |
|
8,500 |
| Google, Inc. (3) |
| 2,615,025 |
|
136,300 |
| Microsoft Corp. |
| 2,649,672 |
|
246,700 |
| Oracle Corp. (3) |
| 4,373,991 |
|
56,000 |
| Western Union Co. |
| 803,040 |
|
|
|
|
| 14,433,533 |
|
Transportation (1.4%) |
|
|
| ||
45,200 |
| Union Pacific Corp. |
| 2,160,560 |
|
21,200 |
| United Parcel Service, Inc. |
| 1,169,392 |
|
|
|
|
| 3,329,952 |
|
Utilities (1.7%) |
|
|
| ||
80,600 |
| Equitable Resources, Inc. |
| 2,704,130 |
|
19,100 |
| Southern Co. |
| 706,700 |
|
12,800 |
| Wisconsin Energy Corp. |
| 537,344 |
|
|
|
|
| 3,948,174 |
|
|
|
|
|
|
|
Total common stocks |
| 203,422,277 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Short-Term Securities (7.1%) (2) |
|
|
| ||
16,760,000 |
| Sit Money Market Fund, 0.34% (4) |
| 16,760,000 |
|
3,300,000 |
| AMEX Credit Corp., 0.02%, 1/9/09 |
| 3,299,985 |
|
5,000,000 |
| Chevron Fdg. Corp, 0.07%, 1/14/09 |
| 4,999,874 |
|
5,000,000 |
| Toyota Credit Corp., 0.40%, 1/23/09 |
| 4,998,778 |
|
|
|
|
|
|
|
Total short-term securities |
| 30,058,637 |
| ||
|
|
|
|
|
|
Total investments in securities |
| $233,480,914 |
| ||
|
|
|
|
See accompanying notes to portfolios of investments on page 46.
29
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Matt T. Loucks, Robert W. Sit |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of growth companies with capitalizations of $2 billion to $15 billion at the time of purchase.
|
PORTFOLIO SUMMARY |
|
|
|
Net Asset Value 12/31/08: |
| $8.71 Per Share |
6/30/08: |
| $14.83 Per Share |
|
|
|
Total Net Assets: |
| $118.0 Million |
| ||
Weighted Average Market Cap: |
| $9.1 Billion |
|
PORTFOLIO STRUCTURE - BY SECTOR |
30
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| -26.99 | % |
|
| -27.36 | % |
|
| -27.27 | % | ||
6 Month** |
|
| -40.62 |
|
|
| -40.26 |
|
|
| -36.67 |
| ||
1 Year |
|
| -45.34 |
|
|
| -44.32 |
|
|
| -41.46 |
| ||
5 Year |
|
| -0.81 |
|
|
| -2.33 |
|
|
| -0.71 |
| ||
10 Year |
|
| -0.56 |
|
|
| -0.19 |
|
|
| 3.18 |
| ||
Inception |
|
| 10.72 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit Mid Cap |
| Russell Midcap® |
| Russell | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| -45.34 | % |
|
| -44.32 | % |
|
| -41.46 | % | ||
5 Year |
|
| -3.98 |
|
|
| -11.13 |
|
|
| -3.51 |
| ||
10 Year |
|
| -5.49 |
|
|
| -1.85 |
|
|
| 36.82 |
| ||
Inception |
|
| 1363.25 |
|
|
| n/a |
|
|
| n/a |
| ||
(9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/08 | **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 12/31/98 and held until 12/31/08 would have declined to $9,451 in the Fund or $9,815 in the Russell Midcap® Growth Index.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | Celgene Corp. |
| 2. | Gilead Sciences, Inc. |
| 3. | TCF Financial Corp. |
| 4. | Stericycle, Inc. |
| 5. | Southwestern Energy Co. |
| 6. | Airgas, Inc. |
| 7. | Jacobs Engineering Group Inc. |
| 8. | Activision Blizzard, Inc. |
| 9. | American Tower Corp. |
| 10. | C.H. Robinson Worldwide, Inc. |
|
| Total Number of Holdings: 88 |
31
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (98.8%) (2) |
|
|
| ||
|
|
|
|
|
|
Communications (2.1%) |
|
|
| ||
83,200 |
| American Tower Corp. (3) |
| 2,439,424 |
|
|
|
|
|
|
|
Consumer Durables (2.6%) |
|
|
| ||
289,600 |
| Activision Blizzard, Inc. (3) |
| 2,502,144 |
|
34,800 |
| Electronic Arts, Inc. (3) |
| 558,192 |
|
|
|
|
| 3,060,336 |
|
Consumer Non-Durables (1.7%) |
|
|
| ||
40,700 |
| Central European Distribution Corp. (3) |
| 801,790 |
|
59,800 |
| Coach, Inc. (3) |
| 1,242,046 |
|
|
|
|
| 2,043,836 |
|
Consumer Services (4.3%) |
|
|
| ||
32,500 |
| Central European Media Enterprises (3) |
| 705,900 |
|
19,700 |
| Devry, Inc. |
| 1,130,977 |
|
81,000 |
| International Game Technology |
| 963,090 |
|
16,300 |
| ITT Educational Services, Inc. (3) |
| 1,548,174 |
|
39,900 |
| Marriott International, Inc. |
| 776,055 |
|
|
|
|
| 5,124,196 |
|
Electronic Technology (9.7%) |
|
|
| ||
76,450 |
| Analog Devices, Inc. |
| 1,454,079 |
|
9,000 |
| Apple Computer, Inc. (3) |
| 768,150 |
|
68,675 |
| Broadcom Corp. (3) |
| 1,165,415 |
|
23,100 |
| CommScope, Inc. (3) |
| 358,974 |
|
16,000 |
| F5 Networks, Inc. (3) |
| 365,760 |
|
18,400 |
| Itron, Inc. (3) |
| 1,172,816 |
|
80,700 |
| Juniper Networks, Inc. (3) |
| 1,413,057 |
|
34,100 |
| KLA-Tencor Corp. |
| 743,039 |
|
34,500 |
| MEMC Electronic Materials, Inc. (3) |
| 492,660 |
|
63,500 |
| NetApp, Inc. (3) |
| 887,095 |
|
11,000 |
| Research In Motion, Ltd. (3) |
| 446,380 |
|
20,900 |
| Synaptics, Inc. (3) |
| 346,104 |
|
52,900 |
| Trimble Navigation, Ltd. (3) |
| 1,143,169 |
|
39,700 |
| Xilinx, Inc. |
| 707,454 |
|
|
|
|
| 11,464,152 |
|
Energy Minerals (7.7%) |
|
|
| ||
24,700 |
| Apache Corp. |
| 1,840,891 |
|
40,000 |
| Murphy Oil Corp. |
| 1,774,000 |
|
98,300 |
| Southwestern Energy Corp. (3) |
| 2,847,751 |
|
32,800 |
| Valero Energy Corp. |
| 709,792 |
|
54,895 |
| XTO Energy, Inc. |
| 1,936,147 |
|
|
|
|
| 9,108,581 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Finance (9.9%) |
|
| |||
29,050 |
| Ace, Ltd. |
| 1,537,326 |
|
33,200 |
| Affiliated Managers Group, Inc. (3) |
| 1,391,744 |
|
17,900 |
| Aon Corp. |
| 817,672 |
|
15,600 |
| IntercontinentalExchange, Inc. (3) |
| 1,286,064 |
|
23,300 |
| Northern Trust Corp. |
| 1,214,862 |
|
13,200 |
| PartnerRe, Ltd. |
| 940,764 |
|
38,700 |
| T. Rowe Price Group, Inc. |
| 1,371,528 |
|
228,800 |
| TCF Financial Corp. |
| 3,125,408 |
|
|
|
|
| 11,685,368 |
|
|
|
|
| ||
Health Services (6.1%) |
|
|
| ||
13,500 |
| Covance, Inc. (3) |
| 621,405 |
|
32,100 |
| Express Scripts, Inc. (3) |
| 1,764,858 |
|
30,200 |
| Laboratory Corp. (3) |
| 1,945,182 |
|
56,000 |
| Stericycle, Inc. (3) |
| 2,916,480 |
|
|
|
|
| 7,247,925 |
|
|
|
|
| ||
Health Technology (17.5%) |
|
|
| ||
11,800 |
| Alcon, Inc. |
| 1,052,442 |
|
46,600 |
| Allergan, Inc. |
| 1,878,912 |
|
50,600 |
| Amylin Pharmaceuticals, Inc. (3) |
| 549,010 |
|
12,700 |
| C.R. Bard, Inc. |
| 1,070,102 |
|
70,300 |
| Celgene Corp. (3) |
| 3,886,184 |
|
68,200 |
| Gilead Sciences, Inc. (3) |
| 3,487,748 |
|
37,300 |
| Idexx Laboratories, Inc. (3) |
| 1,345,784 |
|
12,546 |
| Intuitive Surgical, Inc. (3) |
| 1,593,216 |
|
18,400 |
| Millipore Corp. (3) |
| 947,968 |
|
55,488 |
| NuVasive, Inc. (3) |
| 1,922,659 |
|
37,700 |
| SurModics, Inc. (3) |
| 952,679 |
|
56,450 |
| Thermo Fisher Scientific, Inc. (3) |
| 1,923,251 |
|
|
|
|
| 20,609,955 |
|
|
|
|
| ||
Industrial Services (3.5%) |
|
|
| ||
43,400 |
| Aecom Technology Corp. (3) |
| 1,333,682 |
|
54,800 |
| Noble Corp. |
| 1,208,888 |
|
68,300 |
| Smith International, Inc. |
| 1,563,387 |
|
|
|
|
| 4,105,957 |
|
|
|
|
| ||
Non-Energy Minerals (1.1%) |
|
|
| ||
26,750 |
| Allegheny Technologies, Inc. |
| 682,927 |
|
25,500 |
| Haynes International, Inc. (3) |
| 627,810 |
|
|
|
|
| 1,310,737 |
|
32
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Process Industries (6.4%) |
|
|
| ||
68,900 |
| Airgas, Inc. |
| 2,686,411 |
|
70,800 |
| Albemarle Corp. |
| 1,578,840 |
|
30,500 |
| CF Industries Holdings, Inc. |
| 1,499,380 |
|
50,500 |
| Ecolab, Inc. |
| 1,775,075 |
|
|
|
|
| 7,539,706 |
|
|
|
|
|
|
|
Producer Manufacturing (10.6%) |
|
|
| ||
19,600 |
| AGCO Corp. (3) |
| 462,364 |
|
35,350 |
| AMETEK, Inc. |
| 1,067,924 |
|
43,000 |
| Cummins, Inc. |
| 1,149,390 |
|
47,300 |
| IDEX Corp. |
| 1,142,295 |
|
32,600 |
| ITT Industries, Inc. |
| 1,499,274 |
|
55,100 |
| Jacobs Engineering Group, Inc. (3) |
| 2,650,310 |
|
30,100 |
| Precision Castparts Corp. |
| 1,790,348 |
|
31,900 |
| Rockwell Collins, Inc. |
| 1,246,971 |
|
18,000 |
| SPX Corp. |
| 729,900 |
|
54,600 |
| Textron, Inc. |
| 757,302 |
|
|
|
|
| 12,496,078 |
|
|
|
|
|
|
|
Retail Trade (3.6%) |
|
|
| ||
84,800 |
| Dick’s Sporting Goods, Inc. (3) |
| 1,196,528 |
|
85,200 |
| GameStop Corp. (3) |
| 1,845,432 |
|
37,700 |
| J.C. Penney Company, Inc. |
| 742,690 |
|
38,700 |
| Nordstrom, Inc. |
| 515,097 |
|
|
|
|
| 4,299,747 |
|
Technology Services (8.0%) |
|
|
| ||
46,190 |
| Adobe Systems, Inc. (3) |
| 983,385 |
|
33,850 |
| Akamai Technologies, Inc. (3) |
| 510,797 |
|
71,600 |
| Amdocs, Ltd. (3) |
| 1,309,564 |
|
30,500 |
| ANSYS, Inc. (3) |
| 850,645 |
|
53,800 |
| Autodesk, Inc. (3) |
| 1,057,170 |
|
91,900 |
| Citrix Systems, Inc. (3) |
| 2,166,083 |
|
106,800 |
| Cognizant Tech. Solutions Corp. (3) |
| 1,928,808 |
|
18,000 |
| Salesforce.com, Inc. (3) |
| 576,180 |
|
|
|
|
| 9,382,632 |
|
Transportation (3.4%) |
|
|
| ||
43,900 |
| C.H. Robinson Worldwide, Inc. |
| 2,415,817 |
|
46,700 |
| Expeditors Intl. of Washington, Inc. |
| 1,553,709 |
|
|
|
|
| 3,969,526 |
|
|
|
|
|
|
|
Utilities (0.6%) |
|
|
| ||
20,600 |
| Equitable Resources, Inc. |
| 691,130 |
|
|
|
|
|
|
|
Total common stocks |
| 116,579,286 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Short-Term Securities (1.4%) (2) |
|
|
| ||
1,667,000 |
| Sit Money Market Fund, 0.34% (4) |
| 1,667,000 |
|
(cost: $1,667,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $144,409,460) (5) |
| $118,246,286 |
|
See accompanying notes to portfolios of investments on page 46.
33
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Janet K. Kinzler, and Tasha M. Murdoff |
|
|
|
|
|
|
|
|
|
INVESTMENT OBJECTIVE AND STRATEGY |
|
PORTFOLIO SUMMARY |
|
|
|
|
Net Asset Value 12/31/08: |
| $10.48 Per Share | |
6/30/08: |
| $17.80 Per Share | |
|
|
|
|
Total Net Assets: |
| $21.3 | Million |
|
|
|
|
Weighted Average Market Cap: |
| $39.2 | Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
34
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
|
|
| Sit |
| MSCI |
| MSCI |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| 3 Month** |
| -23.52 | % |
| -20.10 | % |
| -19.95 | % |
|
| 6 Month** |
| -40.11 |
|
| -37.62 |
|
| -36.41 |
|
|
| 1 Year |
| -44.99 |
|
| -42.70 |
|
| -43.38 |
|
|
| 5 Year |
| -0.45 |
|
| 1.43 |
|
| 1.66 |
|
|
| 10 Year |
| -4.19 |
|
| -1.30 |
|
| 0.80 |
|
|
| Inception |
| 2.42 |
|
| 2.21 |
|
| 4.00 |
|
|
| (11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CUMULATIVE TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit |
| MSCI |
| MSCI |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Year |
| -44.99 | % |
| -42.70 | % |
| -43.38 | % |
|
| 5 Year |
| -2.24 |
|
| 7.38 |
|
| 8.57 |
|
|
| 10 Year |
| -34.85 |
|
| -12.28 |
|
| 8.28 |
|
|
| Inception |
| 50.76 |
|
| 45.53 |
|
| 96.19 |
|
|
| (11/1/91) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *As of 12/31/08. |
|
| **Not annualized. |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 12/31/98 and held until 12/31/08 would have declined to $6,515 in the Fund or $8,772 in the MSCI EAFE Growth Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
35
|
|
|
|
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
TOP 10 HOLDINGS |
|
|
|
| 1. | BHP Billiton, Ltd. |
| 2. | Nestle, S.A. |
| 3. | Vestas Wind Systems A/S |
| 4. | Telefonica, S.A. |
| 5. | Roche Holdings, A.G. |
| 6. | Schlumberger, Ltd. |
| 7. | Veolia Environment |
| 8. | Reckitt Benckiser, p.l.c |
| 9. | East Japan Railway Co. |
| 10. | Synthes, Inc. |
|
| Total Number of Holdings: 82 |
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Common Stocks (97.8%) (2) |
|
|
| ||
| |||||
Africa/ Middle East (1.1%) |
|
| |||
| |||||
Israel (1.1%) |
|
|
| ||
12,400 |
| Amdocs, Ltd., A.D.R. (Tech. Services) (3) |
| 226,796 |
|
|
|
|
|
|
|
Asia (32.3%) |
|
|
| ||
| |||||
Australia (6.4%) |
|
|
| ||
11,514 |
| Australia and New Zealand Banking Group (Finance) |
| 124,308 |
|
47,051 |
| BHP Billiton, Ltd. (Non-Energy Minerals) |
| 999,559 |
|
2,750 |
| Rio Tinto, A.D.R. (Non-Energy Minerals) |
| 244,503 |
|
|
|
|
| 1,368,370 |
|
Hong Kong / China (3.1%) |
|
|
| ||
65,800 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 164,109 |
|
8,528 |
| HSBC Holdings, p.l.c. (Finance) |
| 83,465 |
|
18,600 |
| HSBC Holdings, p.l.c. (Finance) |
| 184,590 |
|
27,600 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 232,241 |
|
|
|
|
| 664,405 |
|
India * (0.5%) |
|
|
| ||
5,100 |
| ICICI Bank Ltd. (Finance) |
| 98,175 |
|
|
|
|
|
|
|
Japan (21.7%) |
|
|
| ||
6,600 |
| AFLAC, Inc., A.D.R. (Finance) |
| 302,544 |
|
20,500 |
| Asahi Breweries (Consumer Non-Durables) |
| 354,446 |
|
10,500 |
| Canon, Inc. (Electronic Tech.) |
| 332,688 |
|
54 |
| East Japan Railway (Transportation) |
| 411,044 |
|
3,700 |
| FANUC LTD. (Producer Mfg.) |
| 265,186 |
|
11,200 |
| Honda Motor Co., Ltd. (Producer Mfg.) |
| 238,545 |
|
14,200 |
| Ito En, Ltd. (Consumer Non Durables) |
| 209,624 |
|
11,000 |
| Kao Corp. (Consumer Non-Durables) |
| 334,129 |
|
46 |
| KDDI Corp. (Communications) |
| 328,454 |
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
13,000 |
| Kirin Holdings Company, Ltd. (Consumer Non-Durables) |
| 172,840 |
|
7,000 |
| Tokio Marine Holdings, Inc. (Finance) |
| 207,406 |
|
41,080 |
| Mitsubishi UFJ Financial Group, Inc. (Finance) |
| 258,194 |
|
16,000 |
| Mitsui O.S.K. Lines, Ltd. (Transportation) |
| 98,885 |
|
800 |
| Nintendo Co., Ltd. (Consumer Durables) |
| 305,721 |
|
34,000 |
| Nippon Oil Corp. (Energy Minerals) |
| 172,393 |
|
5,200 |
| Takeda Pharmaceutical Co. (Health Tech.) |
| 271,036 |
|
5,200 |
| Yamada Denki Co. (Retail Trade) |
| 363,489 |
|
|
|
|
| 4,626,624 |
|
South Korea (0.6%) |
|
|
| ||
750 |
| Samsung Electronics Co., G.D.R. (Electronic Tech.) |
| 134,274 |
|
|
|
|
|
|
|
Europe (58.8%) |
|
|
| ||
| |||||
Czech Republic (0.6%) |
|
|
| ||
5,600 |
| Central European Media Enterprises, Ltd. (Consumer Svcs.) (3) |
| 121,632 |
|
|
|
|
|
|
|
Denmark (3.1%) |
|
|
| ||
3,300 |
| Genmab A/S (Health Technology) (3) |
| 128,100 |
|
8,900 |
| Vestas Wind Systems A/S (Process Industries) (3) |
| 523,736 |
|
|
|
|
| 651,836 |
|
Finland (0.7%) |
|
|
| ||
9,550 |
| Nokia Corp., A.D.R. (Electronic Tech.) |
| 148,980 |
|
|
|
|
|
|
|
France (9.9%) |
|
|
| ||
1,714 |
| Alstom, S.A. (Producer Manufacturing) |
| 102,145 |
|
8,060 |
| AXA (Finance) |
| 180,911 |
|
2,510 |
| BNP Paribas (Finance) |
| 108,343 |
|
4,784 |
| Danone (Consumer Non-Durables) |
| 289,048 |
|
2,379 |
| Pernod Ricard, S.A. (Consumer Non-Dur.) |
| 176,731 |
|
10,600 |
| Schlumberger, Ltd. (Industrial Svcs.) |
| 448,698 |
|
6,884 |
| Total, S.A. (Energy Minerals) |
| 378,476 |
|
13,610 |
| Veolia Environment (Utilities) |
| 429,307 |
|
|
|
|
| 2,113,659 |
|
Germany (7.5%) |
|
|
| ||
6,179 |
| Adidas AG (Consumer Durables) |
| 235,541 |
|
1,850 |
| Allianz SE (Finance) |
| 196,841 |
|
4,100 |
| Fresenius AG (Health Tech.) |
| 240,609 |
|
1,575 |
| Muenchener Rueckver (Finance) |
| 244,515 |
|
10,892 |
| SAP AG (Tech. Services) |
| 395,238 |
|
3,896 |
| Siemens AG (Producer Mfg.) |
| 293,304 |
|
|
|
|
| 1,606,048 |
|
36
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Italy (2.1%) |
|
|
| ||
36,400 |
| Enel S.P.A. (Utilities) |
| 234,474 |
|
9,850 |
| Tenaris S.A., A.D.R. (Industrial Services) |
| 206,653 |
|
|
|
|
| 441,127 |
|
Netherlands (2.6%) |
|
|
| ||
15,800 |
| ASML Holding N.V. (Electronic Technology) |
| 285,506 |
|
11,030 |
| ING Groep N.V. (Finance) |
| 121,395 |
|
7,180 |
| Philips Electronics N.V. (Consumer Durables) |
| 142,356 |
|
|
|
|
| 549,257 |
|
Poland (0.6%) |
|
|
| ||
7,200 |
| Central European Distribution Corp. (Consumer Non-Durables) (3) |
| 141,840 |
|
|
|
|
|
|
|
Spain (2.8%) |
|
|
| ||
7,600 |
| Banco Bilbao Vizcaya, S.A. (Finance) |
| 94,924 |
|
22,675 |
| Telefonica, S.A. (Communications) |
| 511,812 |
|
|
|
|
| 606,736 |
|
Sweden (1.0%) |
|
|
| ||
27,000 |
| Ericsson, A.D.R. (Electronic Tech.) |
| 210,870 |
|
Switzerland (14.6%) |
|
|
| ||
10,300 |
| ABB, Ltd., A.D.R. (Producer Manufacturing) |
| 154,603 |
|
5,274 |
| Credit Suisse Group (Finance) |
| 147,802 |
|
3,655 |
| Kuehne & Nagel Intl. A.G. (Transportation) |
| 236,728 |
|
15,630 |
| Nestle, S.A. (Consumer Non-Durables) |
| 618,919 |
|
7,600 |
| Novartis, A.G. (Health Tech.) |
| 380,619 |
|
2,146 |
| Panalpina Welttransport Holding (Transportation) (3) |
| 121,801 |
|
3,045 |
| Roche Holdings, A.G. (Health Tech.) |
| 471,418 |
|
5,100 |
| Swiss Reinsurance (Finance) |
| 249,725 |
|
1,760 |
| Syngenta, A.G. (Process Industries) |
| 341,907 |
|
3,150 |
| Synthes, Inc. (Health Tech.) (3) |
| 399,439 |
|
|
|
|
| 3,122,961 |
|
United Kingdom (13.3%) |
|
|
| ||
6,400 |
| Anglo American, p.l.c (Non-Energy Minerals) |
| 149,358 |
|
43,910 |
| BAE Systems, p.l.c. (Producer Manufacturing) |
| 238,965 |
|
4,700 |
| BP, p.l.c (Energy Minerals) |
| 219,678 |
|
10,403 |
| British American Tobacco, p.l.c (Consumer Non-Durables) |
| 271,382 |
|
2,800 |
| Diageo, p.l.c. (Consumer Non-Durables) |
| 158,872 |
|
7,100 |
| GlaxoSmithkline, A.D.R. (Health Tech.) |
| 264,617 |
|
19,100 |
| Pearson, p.l.c (Consumer Services) |
| 182,214 |
|
11,100 |
| Reckitt Benckiser, p.l.c. (Consumer Non-Durables) |
| 415,928 |
|
3,900 |
| Royal Dutch Shell, p.l.c (Energy Minerals) |
| 200,577 |
|
68,390 |
| Tesco, p.l.c. (Retail Trade) |
| 356,109 |
|
184,359 |
| Vodafone Group, p.l.c. (Communications) |
| 377,503 |
|
|
|
|
| 2,835,203 |
|
|
|
|
|
|
|
Quantity Name of Issuer |
| Market Value ($)(1) |
| ||
|
|
|
|
|
|
Latin America (1.9%) |
|
|
| ||
| |||||
Brazil (0.8%) |
|
|
| ||
7,800 |
| AGCO Corp. (Producer Mfg.) (3) |
| 184,002 |
|
|
|
|
|
|
|
Mexico (1.1%) |
|
|
| ||
88,260 |
| Wal-Mart de Mexico (Retail Trade) |
| 235,810 |
|
|
|
|
|
|
|
North America (3.7%) |
|
|
| ||
| |||||
Canada (3.7%) |
|
|
| ||
4,500 |
| Potash Corp. of Saskatchewan, Inc. (Process Industries) |
| 329,490 |
|
4,900 |
| Research In Motion, Ltd. (Electronic Tech.) (3) |
| 198,842 |
|
8,500 |
| Rogers Communications, Inc. (Communications) |
| 255,680 |
|
|
|
|
| 784,012 |
|
|
|
|
|
|
|
Total common stocks |
|
|
| ||
(cost: $21,916,296) |
| 20,872,617 |
| ||
|
|
|
|
|
|
Exchange Traded Funds (0.7%) (2) |
|
|
| ||
40,100 |
| iShares MSCI India* |
| 140,350 |
|
(cost: $138,451) |
|
|
| ||
|
|
|
|
|
|
Short Term Securities (2.0%) (2) |
|
|
| ||
425,000 |
| Sit Money Market Fund, 0.34% (4) |
| 425,000 |
|
(cost: $425,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $22,479,747) (5) |
| $21,437,967 |
|
|
|
* | The Fund’s total investment in India including the iShares comprises 1.2% of the fund’s net assets. |
See accompanying notes to portfolios of investments on page 46.
37
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit, Kent L. Johnson, Robert W. Sit, Matt T. Loucks, Michael J. Stellmacher |
|
|
|
|
|
|
|
|
Small cap stocks tumbled in 2008, as the fallout from the financial crisis began to impact virtually every sector of the economy. While investor sentiment is very negative given the onslaught of “bad news” (i.e., housing, employment trends, bank credit losses) in recent months, it is worth noting that there are some positives. Valuations for stocks are attractive on all metrics; oil and other commodity prices are plunging; interest rates are falling throughout the world; and the incoming Obama administration is set to announce an enormous fiscal stimulus package. From our perspective, while the market declines and related increased volatility in recent months have been unsettling (to say the least), it has given us the opportunity to add to many attractive existing holdings within the Fund and to make new purchases of high quality companies. Since the duration of the current economic downturn is difficult to predict, we are emphasizing companies that have both the financial strength (i.e., strong balance sheets) to ride out the tough economy and strong fundamentals that make them well-positioned for an eventual rebound. While the Fund maintains a significant weight in the traditional growth sectors (i.e., health care, technology), the portfolio remains well-diversified, reflecting our belief that there are long-term growth opportunities in many sectors.
Compared to the Russell 2000 Growth Index, the Fund’s relative performance was negatively impacted by holdings in the health technology, industrial services and electronic technology sectors. Cano Petroleum, Flotek Industries, McDermott and Chicago Bridge & Iron were the worst performers in the Fund over the period. Conversely, outperforming sectors included energy minerals, finance, and consumer services. Despite the sharp decline in the broader market, several stocks within the Fund posted solid gains over the six month period, including Thoratec, Allscripts, Validus Holdings and Boston Private Financial Holdings.
This past year was an incredibly challenging year for investors, and we expect market volatility to continue over the near term. However, we remain confident in our research staff’s ability to identify attractive long-term opportunities that will serve our shareholders well over the long term.
|
INVESTMENT OBJECTIVE AND STRATEGY |
The objective of the Sit Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in common stocks of companies with capitalizations at the time of purchase of up to $3.0 billion, or up to the market capitalization of the largest company included in the Russell 2000 Index measured at the end of the previous twelve months.
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 12/31/08: |
| $ | 23.50 Per Share |
|
|
6/30/08: |
| $ | 37.44 Per Share |
|
|
|
|
|
|
|
|
Total Net Assets: |
| $ | 57.1 Million |
|
|
| |||||
Weighted Average Market Cap: |
| $ | 2.5 Billion |
|
|
|
PORTFOLIO STRUCTURE - BY SECTOR |
38
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE ANNUAL TOTAL RETURNS* |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
| Sit Small |
| Russell |
| Russell | ||||||
|
|
|
|
|
|
|
|
|
| ||
3 Month** |
| -26.22 | % |
| -27.45 | % |
| -26.12 | % | ||
6 Month** |
| -37.23 |
|
| -32.51 |
|
| -26.94 |
| ||
1 Year |
| -42.96 |
|
| -38.54 |
|
| -33.79 |
| ||
5 Year |
| -1.25 |
|
| -2.35 |
|
| -0.93 |
| ||
10 Year |
| 4.03 |
|
| -0.76 |
|
| 3.02 |
| ||
Inception |
| 8.29 |
|
| 3.63 |
|
| 6.56 |
| ||
| (7/1/94) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
| Sit Small |
| Russell |
| Russell | ||||||
|
|
|
|
|
|
|
|
|
| ||
1 Year |
| -42.96 | % |
| -38.54 | % |
| -33.79 | % | ||
5 Year |
| -6.11 |
|
| -11.22 |
|
| -4.56 |
| ||
10 Year |
| 48.39 |
|
| -7.34 |
|
| 34.69 |
| ||
Inception |
| 217.87 |
|
| 67.69 |
|
| 151.41 |
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
*As of 12/31/08. |
|
|
|
|
| **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 12/31/98 and held until 12/31/08 would have grown to $14,839 in the Fund or declined to $9,266 in the Russell 2000® Growth Index assuming reinvestment of all dividends and capital gains.
|
TOP 10 HOLDINGS |
|
|
|
| 1. | NuVasive, Inc. |
| 2. | ANSYS, Inc. |
| 3. | TCF Financial Corp. |
| 4. | Arena Resources, Inc. |
| 5. | Informatica Corp. |
| 6. | Thoratec Corp. |
| 7. | Southwestern Energy Co. |
| 8. | Hanover Insurance Group, Inc. |
| 9. | Stericycle, Inc. |
| 10. | Hansen Natural Corp. |
Total Number of Holdings: 99 |
39
|
|
|
|
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
|
| Portfolio of Investments - December 31, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Common Stocks (97.2%) (2) |
|
|
| ||
|
|
|
|
|
|
Commercial Services (1.2%) |
|
|
| ||
15,100 |
| FactSet Research Systems, Inc. |
| 668,024 |
|
Communications (2.8%) |
|
|
| ||
66,750 |
| SBA Communications Corp. (3) |
| 1,089,360 |
|
62,900 |
| Time Warner Telecom, Inc. (3) |
| 532,763 |
|
|
|
|
| 1,622,123 |
|
Consumer Durables (1.9%) |
|
|
| ||
9,700 |
| Polaris Industries, Inc. |
| 277,905 |
|
36,800 |
| Tupperware Brands Corp. |
| 835,360 |
|
|
|
|
| 1,113,265 |
|
Consumer Non-Durables (2.6%) |
|
|
| ||
18,900 |
| Central European Distribution Corp. (3) |
| 372,330 |
|
33,800 |
| Hansen Natural Corp. (3) |
| 1,133,314 |
|
|
|
|
| 1,505,644 |
|
Consumer Services (3.5%) |
|
|
| ||
8,275 |
| Capella Education Co. |
| 486,239 |
|
17,000 |
| DeVry, Inc. |
| 975,970 |
|
2,400 |
| Strayer Education, Inc. |
| 514,584 |
|
|
|
|
| 1,976,793 |
|
Electronic Technology (10.2%) |
|
|
| ||
49,900 |
| Arris Group, Inc. (3) |
| 396,705 |
|
17,900 |
| Ciena Corp. (3) |
| 119,930 |
|
44,600 |
| CommScope, Inc. (3) |
| 693,084 |
|
7,500 |
| F5 Networks, Inc. (3) |
| 171,450 |
|
35,100 |
| Intersil Corp. |
| 322,569 |
|
8,500 |
| Itron, Inc. (3) |
| 541,790 |
|
59,400 |
| Microsemi Corp. (3) |
| 750,816 |
|
37,500 |
| MICROS Systems, Inc. (3) |
| 612,000 |
|
28,000 |
| Silicon Laboratories, Inc. (3) |
| 693,840 |
|
24,200 |
| Synaptics, Inc. (3) |
| 400,752 |
|
30,300 |
| Trimble Navigation, Ltd. (3) |
| 654,783 |
|
25,200 |
| Varian Semiconductor Equip. Assoc., Inc. (3) |
| 456,624 |
|
|
|
|
| 5,814,343 |
|
Energy Minerals (5.9%) |
|
|
| ||
50,200 |
| Arena Resources, Inc. (3) |
| 1,410,118 |
|
62,982 |
| Cano Petroleum, Inc. (3) |
| 27,712 |
|
7,000 |
| Carrizo Oil & Gas, Inc. (3) |
| 112,700 |
|
38,800 |
| Frontier Oil Corp. |
| 490,044 |
|
5,900 |
| GMX Resources, Inc. (3) |
| 149,388 |
|
41,800 |
| Southwestern Energy Co. (3) |
| 1,210,946 |
|
|
|
|
| 3,400,908 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Finance (9.5%) |
|
|
| ||
16,975 |
| Affiliated Managers Group, Inc. (3) |
| 711,592 |
|
42,100 |
| Aspen Insurance Holdings, Ltd. |
| 1,020,925 |
|
47,000 |
| Boston Private Financial Holdings, Inc. |
| 321,480 |
|
27,500 |
| Hanover Insurance Group, Inc. |
| 1,181,675 |
|
15,200 |
| HCC Insurance Holdings, Inc. |
| 406,600 |
|
104,600 |
| TCF Financial Corp. |
| 1,428,836 |
|
14,500 |
| Validus Holdings, Ltd. |
| 379,320 |
|
|
|
|
| 5,450,428 |
|
Health Services (5.7%) |
|
|
| ||
28,200 |
| Allscripts Healthcare Solutions, Inc. (3) |
| 279,744 |
|
4,300 |
| Amedisys, Inc. (3) |
| 177,762 |
|
10,400 |
| Covance, Inc. (3) |
| 478,712 |
|
11,300 |
| Healthways, Inc. (3) |
| 129,724 |
|
7,100 |
| Pharmaceutical Product Development, Inc. |
| 205,971 |
|
30,500 |
| Psychiatric Solutions, Inc. (3) |
| 849,425 |
|
21,800 |
| Stericycle, Inc. (3) |
| 1,135,344 |
|
|
|
|
| 3,256,682 |
|
Health Technology (20.7%) |
|
|
| ||
22,100 |
| Alexion Pharmaceuticals, Inc. (3) |
| 799,799 |
|
56,400 |
| Amylin Pharmaceuticals, Inc. (3) |
| 611,940 |
|
13,700 |
| BioMarin Pharmaceutical, Inc. (3) |
| 243,860 |
|
18,200 |
| Celgene Corp. (3) |
| 1,006,096 |
|
57,010 |
| CryoLife, Inc. (3) |
| 553,567 |
|
41,900 |
| ev3, Inc. (3) |
| 255,590 |
|
16,300 |
| Gen-Probe, Inc. (3) |
| 698,292 |
|
26,700 |
| Hansen Medical, Inc. (3) |
| 192,774 |
|
18,100 |
| Hologic, Inc. (3) |
| 236,567 |
|
24,200 |
| ICON, A.D.R. (3) |
| 476,498 |
|
16,400 |
| IDEXX Laboratories, Inc. (3) |
| 591,712 |
|
5,800 |
| Intuitive Surgical, Inc. (3) |
| 736,542 |
|
2,500 |
| Myriad Genetics, Inc. (3) |
| 165,650 |
|
49,600 |
| NuVasive, Inc. (3) |
| 1,718,640 |
|
29,900 |
| PerkinElmer, Inc. |
| 415,909 |
|
29,796 |
| SurModics, Inc. (3) |
| 752,945 |
|
9,500 |
| Techne Corp. |
| 612,940 |
|
37,400 |
| Thoratec Corp. (3) |
| 1,215,126 |
|
8,200 |
| United Therapeutics Corp. (3) |
| 512,910 |
|
|
|
|
| 11,797,357 |
|
40
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Industrial Services (4.9%) |
|
|
| ||
18,000 |
| Atwood Oceanics, Inc. (3) |
| 275,040 |
|
5,200 |
| CARBO Ceramics, Inc. |
| 184,756 |
|
13,400 |
| Core Laboratories |
| 802,124 |
|
17,700 |
| Lufkin Industries, Inc. |
| 610,650 |
|
22,000 |
| URS Corp. (3) |
| 896,940 |
|
|
|
|
| 2,769,510 |
|
Non-Energy Minerals (1.1%) |
|
|
| ||
15,650 |
| Allegheny Technologies, Inc. |
| 399,545 |
|
8,500 |
| Haynes International, Inc. (3) |
| 209,270 |
|
|
|
|
| 608,815 |
|
Process Industries (2.8%) |
|
|
| ||
8,400 |
| CF Industries Holdings, Inc. |
| 412,944 |
|
31,979 |
| Darling International, Inc. (3) |
| 175,565 |
|
8,000 |
| Dionex Corp. (3) |
| 358,800 |
|
58,900 |
| Landec Corp. (3) |
| 387,562 |
|
14,700 |
| Terra Industries, Inc. |
| 245,049 |
|
|
|
|
| 1,579,920 |
|
Producer Manufacturing (8.5%) |
|
|
| ||
18,725 |
| AMETEK, Inc. |
| 565,682 |
|
15,100 |
| Ampco-Pittsburgh Corp. |
| 327,670 |
|
6,400 |
| Anixter International, Inc. (3) |
| 192,768 |
|
23,700 |
| IDEX Corp. |
| 572,355 |
|
17,050 |
| Kaydon Corp. |
| 585,668 |
|
11,400 |
| LSB Industries, Inc. (3) |
| 94,848 |
|
26,386 |
| Rofin-Sinar Technologies, Inc. (3) |
| 543,024 |
|
11,600 |
| Roper Industries, Inc. |
| 503,556 |
|
7,000 |
| Teledyne Technologies, Inc. (3) |
| 311,850 |
|
14,100 |
| Teleflex, Inc. |
| 706,410 |
|
20,700 |
| Woodward Governor Co. |
| 476,514 |
|
|
|
|
| 4,880,345 |
|
Retail Trade (1.8%) |
|
|
| ||
18,200 |
| Dicks Sporting Goods, Inc. (3) |
| 256,802 |
|
36,500 |
| GameStop Corp. (3) |
| 790,590 |
|
|
|
|
| 1,047,392 |
|
Technology Services (10.7%) |
|
|
| ||
55,500 |
| ANSYS, Inc. (3) |
| 1,547,895 |
|
35,300 |
| Citrix Systems, Inc. (3) |
| 832,021 |
|
23,000 |
| Concur Technologies, Inc. (3) |
| 754,860 |
|
96,450 |
| Informatica Corp. (3) |
| 1,324,258 |
|
17,800 |
| j2 Global Communications, Inc. (3) |
| 356,712 |
|
38,800 |
| Quest Software, Inc. (3) |
| 488,492 |
|
15,600 |
| Syntel, Inc. |
| 360,672 |
|
30,200 |
| The Ultimate Software Group, Inc. (3) |
| 440,920 |
|
|
|
|
| 6,105,830 |
|
|
|
|
|
|
|
Quantity | Name of Issuer |
| Market Value ($)(1) |
| |
|
|
|
|
|
|
Transportation (1.4%) |
|
|
| ||
10,500 |
| Hub Group, Inc. (3) |
| 278,565 |
|
36,200 |
| UTI Worldwide, Inc. |
| 519,108 |
|
|
|
|
| 797,673 |
|
Utilities (2.0%) |
|
|
| ||
23,700 |
| Equitable Resources, Inc. |
| 795,135 |
|
7,300 |
| ITC Holdings Corp. |
| 318,864 |
|
|
|
|
| 1,113,999 |
|
|
|
|
|
|
|
Total common stocks |
| 55,509,051 |
| ||
|
|
|
|
|
|
Short-Term Securities (3.6%) (2) |
|
|
| ||
2,061,000 |
| Sit Money Market Fund, 0.34% (4) | 2,061,000 |
| |
(cost: $2,061,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $70,673,071) (5) |
| $ 57,570,051 |
|
See accompanying notes to portfolios of investments on page 46.
41
|
|
|
|
|
|
|
|
| |
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
| Portfolio Managers: Roger J. Sit and Raymond E. Sit |
|
|
|
|
|
|
|
|
|
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 12/31/08: |
| $12.27 Per Share |
6/30/08: |
| $25.97 Per Share |
|
|
|
Total Net Assets: |
| $9.8 Million |
| ||
Weighted Average Market Cap: |
| $21.1 Billion |
|
PORTFOLIO STRUCTURE - BY REGION |
42
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
AVERAGE ANNUAL TOTAL RETURNS* |
| |||||||||||||
|
|
|
|
|
|
|
| |||||||
|
| Sit |
| MSCI |
| MSCI |
| |||||||
|
|
|
|
|
|
|
|
|
|
| ||||
3 Month** |
|
| -30.73 | % |
|
| -27.94 | % |
|
| -29.47 | % | ||
6 Month** |
|
| -49.59 |
|
|
| -47.84 |
|
|
| -49.83 |
| ||
1 Year |
|
| -55.26 |
|
|
| -54.48 |
|
|
| -57.19 |
| ||
5 Year |
|
| 5.25 |
|
|
| 5.07 |
|
|
| 3.26 |
| ||
10 Year |
|
| 5.61 |
|
|
| 6.61 |
|
|
| 5.43 |
| ||
Inception |
|
| 2.09 |
|
|
| 1.17 |
|
|
| n/a |
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
CUMULATIVE TOTAL RETURNS* | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Sit |
| MSCI |
| MSCI | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 Year |
|
| -55.26 | % |
|
| -54.48 | % |
|
| -57.19 | % | ||
5 Year |
|
| 29.15 |
|
|
| 28.06 |
|
|
| 17.38 |
| ||
10 Year |
|
| 72.53 |
|
|
| 89.66 |
|
|
| 69.71 |
| ||
Inception |
|
| 35.04 |
|
|
| 18.34 |
|
|
| n/a |
| ||
(7/1/94) |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
*As of 12/31/08 | **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 12/31/98 and held until 12/31/08 would have increased to $17,253 in the Fund, or $18,966 in the MSCI Emerging Markets Index assuming reinvestment of all dividends and capital gains.
|
PORTFOLIO STRUCTURE - BY SECTOR |
43
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
| ||
|
|
| ||
| Portfolio of Investments - December 31, 2008 (Unaudited) |
| ||
|
|
|
|
|
|
|
10 LARGEST HOLDINGS |
|
|
|
|
|
|
1. |
| BHP Billiton, Ltd., A.D.R. |
2. |
| Petrobras |
3. |
| America Movil, A.D.R. |
4. |
| Cia Vale Do Rio Doce, A.D.R. |
5. |
| Samsung Electronics |
6. |
| China Life Insurance Co., A.D.R. |
7. |
| Teva Pharmaceutical, A.D.R. |
8. |
| Tsingtao Brewery |
9. |
| China Oilfield Services, Ltd. |
10. |
| New Oriental Education & Tech. |
|
| Group |
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Common Stocks (94.3%) (2) |
|
|
| ||
| |||||
Africa/ Middle East (9.1%) |
|
|
| ||
| |||||
Israel (5.5%) |
|
|
| ||
7,200 |
| Amdocs, Ltd. (Technology Svcs.) (3) |
| 131,689 |
|
7,100 |
| NICE Systems Ltd., A.D.R. (Electronic Tech.) (3) |
| 159,537 |
|
5,700 |
| Teva Pharmaceutical, A.D.R. (Health Tech.) |
| 242,649 |
|
|
|
|
| 533,875 |
|
South Africa (3.6%) |
|
|
| ||
8,247 |
| Bidvest Group, Ltd. (Consumer Services) |
| 93,912 |
|
4,000 |
| MTN Group, Ltd. (Communications) |
| 47,161 |
|
6,900 |
| Naspers, Ltd. (Consumer Services) |
| 124,823 |
|
3,000 |
| Sasol, A.D.R. (Energy Minerals) |
| 90,990 |
|
|
|
|
| 356,886 |
|
Asia (54.9%) |
|
|
| ||
| |||||
Australia (5.1%) |
|
|
| ||
8,000 |
| BHP Billiton, A.D.R. (Non-Energy Minerals) |
| 343,200 |
|
4,200 |
| Rio Tinto (Non-Energy Minerals) |
| 112,551 |
|
500 |
| Rio Tinto, A.D.R, (Non-Energy Minerals) |
| 44,455 |
|
|
|
|
| 500,206 |
|
China / Hong Kong (23.4%) |
|
|
| ||
130,000 |
| China Communications Construction. Co. (Transportation) |
| 162,431 |
|
5,333 |
| China Life Insurance Co., A.D.R. (Finance) |
| 247,451 |
|
9,000 |
| CLP Holdings, Ltd. (Utilities) |
| 61,189 |
|
1,900 |
| China Mobile, Ltd. (Communications) |
| 96,615 |
|
238,000 |
| China Oilfield Services, Ltd. (Industrial Svcs.) |
| 194,309 |
|
102,000 |
| China Railway Construction Corp. (Producer Manufacturing) (3) |
| 152,705 |
|
23,000 |
| China Shenhua Energy Co. (Energy Minerals) |
| 49,309 |
|
270,000 |
| China Water Affairs Group (Utilities) (3) |
| 33,431 |
|
18,200 |
| ChinaEdu Corp., A.D.R. (Consumer Svcs.) (3) |
| 89,180 |
|
15,000 |
| Hengan International Group , Ltd. (Consumer Non-Durables) |
| 48,403 |
|
1,200 |
| HSBC Holdings, A.D.R. (Finance) |
| 58,404 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
135,000 |
| Huabao International Holdings, Ltd. (Consumer Non-Durables) |
| 88,720 |
|
3,500 |
| New Oriental Education & Technology Group, A.D.R. (Consumer Svcs.) (3) |
| 192,185 |
|
158,000 |
| PetroChina Co. (Energy Minerals) |
| 140,408 |
|
82,308 |
| Ports Design, Ltd. (Retail Trade) |
| 100,413 |
|
22,000 |
| Hongkong Land Holdings, Ltd. (Finance) |
| 54,869 |
|
28,000 |
| Li & Fung, Ltd. (Consumer Durables) |
| 48,389 |
|
7,000 |
| Sun Hung Kai Properties, Ltd. (Finance) |
| 58,902 |
|
5,300 |
| Suntech Power Holdings Co., Ltd., A.D.R. (Electronic Technology) (3) |
| 62,010 |
|
158,000 |
| Travelsky Technology, Ltd. (Consumer Svcs.) |
| 69,886 |
|
96,000 |
| Tsingtao Brewery (Consumer Non-Durables) |
| 201,730 |
|
86,000 |
| Xinao Gas Holdings, Ltd. (Utlities) |
| 91,229 |
|
|
|
|
| 2,302,168 |
|
India * (3.4%) |
|
|
| ||
5,500 |
| ICICI Bank, A.D.R. (Finance) |
| 105,875 |
|
2,500 |
| Infosys Technologies, Ltd., A.D.R. (Technology Svcs.) |
| 61,425 |
|
3,300 |
| Reliance Industries, G.D.R. (Energy Minerals) |
| 166,998 |
|
|
|
|
| 334,298 |
|
Indonesia (1.4%) |
|
|
| ||
54,500 |
| PT Astra International (Producer Mfg.) |
| 53,563 |
|
3,400 |
| PT Telekomunikasi, A.D.R. (Communications) |
| 85,238 |
|
|
|
|
| 138,801 |
|
Phillipines (2.5%) |
|
|
| ||
603,000 |
| Manila Water Co. (Utilities) |
| 172,306 |
|
486,000 |
| SM Prime Holdings, Inc. (Retail Trade) |
| 78,735 |
|
|
|
|
| 251,041 |
|
Singapore (1.5%) |
|
|
| ||
51,600 |
| KS Energy Services, Ltd. (Energy Minerals) |
| 35,731 |
|
85,650 |
| Starhub, Ltd. (Communications) |
| 115,711 |
|
|
|
|
| 151,442 |
|
South Korea (11.0%) |
|
|
| ||
725 |
| Cheil Communications, Inc. (Commercial Svcs.) |
| 113,185 |
|
9,007 |
| Industrial Bank of Korea (Finance) |
| 54,991 |
|
2,200 |
| KB Financial Group (Finance) |
| 58,862 |
|
1,900 |
| KB Financial Group, A.D.R. (Finance) |
| 49,780 |
|
7,200 |
| Korea Electric Power Corp. (Utilities) |
| 83,592 |
|
2,000 |
| POSCO, A.D.R. (Non-Energy Minerals) |
| 150,500 |
|
710 |
| Samsung Electronics (Electronic Tech.) |
| 258,859 |
|
5,600 |
| Shinhan Financial Group (Finance) |
| 133,248 |
|
310 |
| Shinsegae Co., Ltd. (Retail Trade) |
| 120,439 |
|
3,100 |
| SK Telecom Co., A.D.R. (Communications) |
| 56,358 |
|
|
|
|
| 1,079,814 |
|
44
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Taiwan (5.7%) |
|
|
| ||
83,766 |
| Cathay Financial Holding Co. (Finance) |
| 94,376 |
|
6,500 |
| HTC Corp. (Electronic Technology) |
| 65,246 |
|
36,254 |
| Hon Hai Precision Industry Co., Ltd. G.D.R. (Electronic Technology) |
| 140,664 |
|
14,904 |
| Hon Hai Precision Industry Co. , Ltd. (Electronic Technology) |
| 29,387 |
|
111,923 |
| Taiwan Semiconductor Co. (Electronic Tech.) |
| 152,717 |
|
9,414 |
| Taiwan Semi., A.D.R. (Electronic Tech.) |
| 74,374 |
|
|
|
|
| 556,764 |
|
Thailand (0.9%) |
|
|
| ||
42,000 |
| Bangkok Bank Public Co., Ltd. (Finance) |
| 85,074 |
|
Europe (8.9%) |
|
|
| ||
| |||||
Czech Republic (2.7%) |
|
|
| ||
4,000 |
| Central European Media Enterprises, Ltd. (Consumer Services) (3) |
| 86,880 |
|
4,200 |
| CEZ (Utilities) |
| 178,677 |
|
|
|
|
| 265,557 |
|
Poland (1.3%) |
|
|
| ||
6,500 |
| Central European Distribution Corp. (3) (Consumer Non-Durables) |
| 128,050 |
|
Russia (3.4%) |
|
|
| ||
6,500 |
| Gazprom, A.D.R. (Energy Minerals) |
| 93,647 |
|
1,500 |
| Gazprom, A.D.R. (Energy Minerals) |
| 21,375 |
|
3,000 |
| Mobile Telesystems, A.D.R. (Communications) |
| 80,040 |
|
2,700 |
| LUKOIL, A.D.R. (Energy Minerals) |
| 89,370 |
|
6,300 |
| Vimpel Communications, A.D.R. (Commun.) |
| 45,108 |
|
|
|
|
| 329,540 |
|
Spain (0.7%) |
|
|
| ||
1,100 |
| Telefonica, A.D.R. (Communications) |
| 74,129 |
|
|
|
|
|
|
|
United Kingdom (0.8%) |
|
|
| ||
3,448 |
| Anglo American p.l.c. (Non-Energy Minerals) |
| 80,466 |
|
|
|
|
|
|
|
Latin America (21.4%) |
|
|
| ||
| |||||
Brazil (12.5%) |
|
|
| ||
19,200 |
| AES Tiete S.A. (Utilities) |
| 122,264 |
|
15,079 |
| Banco Bradesco S.A. (Finance) |
| 146,070 |
|
2,100 |
| Companhia Brasileira de Distribuicao Grupo Pao de Acucar, A.D.R. (Retail Trade) |
| 57,876 |
|
3,600 |
| Companhia de Bebidas das Americas (Consumer Non-Durables) |
| 159,516 |
|
22,300 |
| Companhia Vale do Rio Doce, A.D.R. (Non-Energy Minerals) |
| 270,053 |
|
3,883 |
| Embraer de Aeronautica, A.D.R. (Producer Mfg.) |
| 62,943 |
|
34,680 |
| Petrobras (Energy Minerals) |
| 339,662 |
|
3,000 |
| Petrobras, A.D.R. (Energy Minerals) |
| 73,470 |
|
|
|
|
| 1,231,854 |
|
|
|
|
|
|
|
Quantity |
| Name of Issuer |
| Market Value ($)(1) |
|
|
|
|
|
|
|
Mexico (7.5%) |
|
|
| ||
10,000 |
| America Movil, A.D.R. (Communications) |
| 309,900 |
|
3,800 |
| Grupo Televisa S.A., A.D.R. (Consumer Svcs.) |
| 56,772 |
|
4,200 |
| Homex, A.D.R. (Consumer Durables) (3) |
| 95,886 |
|
3,000 |
| NII Holdings, Inc. (Communications) (3) |
| 54,540 |
|
2,800 |
| Telefonos de Mexico, A.D.R. (Communications) |
| 58,632 |
|
60,540 |
| Wal-Mart de Mexico (Retail Trade) |
| 161,749 |
|
|
|
|
| 737,479 |
|
Peru (1.4%) |
|
|
| ||
8,400 |
| Southern Copper Corp. (Non-Energy Minerals) |
| 134,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common stocks |
| 9,272,348 |
| ||
|
|
|
|
|
|
Exchange Traded Funds (0.7%) (2) |
|
|
| ||
18,300 |
| iShares MSCI India* |
| 64,050 |
|
(cost: $63,183) |
|
|
| ||
|
|
|
|
|
|
Short-Term Securities (6.0%) (2) |
|
|
| ||
585,000 |
| Sit Money Market Fund, 0.34% (4) |
| 585,000 |
|
(cost: $585,000) |
|
|
| ||
|
|
|
|
|
|
Total investments in securities |
|
|
| ||
(cost: $10,383,727) (5) |
| $9,921,398 |
|
|
|
* | 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 46.
45
|
|
|
|
|
|
|
|
|
|
| Sit Mutual Funds |
| ||
|
|
| ||
| Notes to Portfolios of Investments (Unaudited) |
| ||
|
|
|
|
|
|
|
(1) | Securities are valued by procedures described in note 1 to the financial statements. |
|
|
(2) | Percentage figures indicate percentage of total net assets. |
|
|
(3) | Presently non-income producing securities. |
|
|
(4) | This security represents an investment in an affiliated party. See note 3 to the accompanying financial statements. |
|
|
(5) | At December 31, 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 |
| Global |
| Large Cap |
| ||||
Cost for federal income tax purposes |
| $ | 11,298,422 |
| $ | 42,373,522 |
| $ | 2,130,801 |
| $ | 288,349,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 680,944 |
| $ | 669,627 |
| $ | 70,495 |
| $ | 4,849,647 |
|
Gross unrealized depreciation |
|
| (2,164,211 | ) |
| (9,447,362 | ) |
| (123,636 | ) |
| (59,717,762 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| ($ | 1,483,267 | ) | ($ | 8,777,735 | ) | ($ | 53,141 | ) | ($ | 54,868,115 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid Cap |
| International |
| Small Cap |
| Developing |
| ||||
Cost for federal income tax purposes |
| $ | 144,409,460 |
| $ | 22,479,747 |
| $ | 70,673,071 |
| $ | 10,823,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation |
| $ | 17,639,780 |
| $ | 3,227,610 |
| $ | 7,154,121 |
| $ | 2,322,768 |
|
Gross unrealized depreciation |
|
| (43,802,954 | ) |
| (4,269,390 | ) |
| (20,257,141 | ) |
| (2,785,097 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation (depreciation) |
| ($ | 26,163,174 | ) | ($ | 1,041,780 | ) | ($ | 13,103,020 | ) | ($ | 462,329 | ) |
|
|
(6) | These securities have been identified by the investment adviser as illiquid securities. The aggregate value of these securities at December 31, 2008, is $1,996,621 in the Balanced Fund which represents 20.2% of the Fund’s net assets. |
46
|
|
|
|
|
|
|
|
| |
|
|
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| ||
| |
| ||
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This page has been left blank intentionally.
47
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| December 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Global |
| |||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Investments in securities, at identified cost |
| $ | 11,298,422 |
| $ | 42,373,522 |
| $ | 2,130,801 |
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value |
| $ | 9,289,155 |
| $ | 33,594,787 |
| $ | 1,802,660 |
|
Investments in affiliated mutual funds |
|
| 526,000 |
|
| 1,000 |
|
| 275,000 |
|
Cash in bank on demand deposit |
|
| 12,305 |
|
| — |
|
| 213 |
|
Accrued interest and dividends receivable |
|
| 63,123 |
|
| 82,382 |
|
| 4,387 |
|
Receivable for investment securities sold |
|
| 6,968 |
|
| 377,426 |
|
| — |
|
Other receivables |
|
| 204 |
|
| 2,813 |
|
| 161 |
|
Receivable for Fund shares sold |
|
| — |
|
| 37,000 |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
| 9,897,755 |
|
| 34,095,408 |
|
| 2,082,421 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| 501,610 |
|
| — |
|
Payable for investment securities purchased |
|
| 12,438 |
|
| — |
|
| 107,753 |
|
Payable for Fund shares redeemed |
|
| — |
|
| — |
|
| — |
|
Other payables |
|
| 5,800 |
|
| 1,240 |
|
| 146 |
|
Accrued investment management fees |
|
| 8,298 |
|
| 28,425 |
|
| 1,808 |
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
| 26,536 |
|
| 531,275 |
|
| 109,707 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding capital stock |
| $ | 9,871,219 |
| $ | 33,564,133 |
| $ | 1,972,714 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 15,751,972 |
| $ | 44,464,959 |
| $ | 2,046,923 |
|
Undistributed (distributions in excess of) net investment income |
|
| 1,639 |
|
| 19,988 |
|
| 2,096 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (4,399,125 | ) |
| (2,143,079 | ) |
| (23,175 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (1,483,267 | ) |
| (8,777,735 | ) |
| (53,130 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 9,871,219 |
| $ | 33,564,133 |
| $ | 1,972,714 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
|
| 801,328 |
|
| 2,958,462 |
|
| 133,212 |
|
Common Shares (Class S) * |
|
| — |
|
| 673,956 |
|
| 75,870 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
| $ | 9,871,219 |
| $ | 27,344,147 |
| $ | 1,256,879 |
|
Common Shares (Class S) * |
|
| — |
|
| 6,219,986 |
|
| 715,835 |
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
| $ | 12.32 |
| $ | 9.24 |
| $ | 9.44 |
|
Common Shares (Class S) * |
|
| — |
| $ | 9.23 |
| $ | 9.44 |
|
* Dividend Growth and Global Dividend Growth Funds offer multiple share classes (I and S). All other Funds offer a single share class.
48
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| Small Cap |
| Developing |
| |||||
ASSETS |
|
|
|
|
|
|
|
|
|
| ||||||
Investments in securities, at identified cost |
| $ | 288,349,029 |
| $ | 144,409,460 |
| $ | 22,479,747 |
| $ | 70,673,071 |
| $ | 10,383,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in securities, at market value |
| $ | 216,720,914 |
| $ | 116,579,286 |
| $ | 21,012,967 |
| $ | 55,509,051 |
| $ | 9,336,398 |
|
Investments in affiliated mutual funds |
|
| 16,760,000 |
|
| 1,667,000 |
|
| 425,000 |
|
| 2,061,000 |
|
| 585,000 |
|
Cash in bank on demand deposit |
|
| 261 |
|
| 577 |
|
| — |
|
| — |
|
| 121 |
|
Accrued interest and dividends receivable |
|
| 306,407 |
|
| 91,826 |
|
| 97,955 |
|
| 17,849 |
|
| 30,941 |
|
Receivable for investment securities sold |
|
| 1,621,884 |
|
| 360,249 |
|
| 66,469 |
|
| 70,766 |
|
| — |
|
Other receivables |
|
| 14,630 |
|
| — |
|
| — |
|
| 51,734 |
|
| 7,116 |
|
Receivable for Fund shares sold |
|
| 1,870,966 |
|
| — |
|
| — |
|
| 176 |
|
| 12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
| 237,295,062 |
|
| 118,698,938 |
|
| 21,602,391 |
|
| 57,710,576 |
|
| 9,959,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disbursements in excess of cash balances |
|
| — |
|
| — |
|
| 65,299 |
|
| — |
|
| — |
|
Payable for investment securities purchased |
|
| 530,817 |
|
| 342,055 |
|
| 127,734 |
|
| 532,682 |
|
| 109,572 |
|
Payable for Fund shares redeemed |
|
| 487,223 |
|
| 68,982 |
|
| 6,193 |
|
| 27,783 |
|
| 5,931 |
|
Other payables |
|
| 2 |
|
| 151,555 |
|
| 28,220 |
|
| — |
|
| — |
|
Accrued investment management fees |
|
| 190,673 |
|
| 119,375 |
|
| 30,550 |
|
| 67,569 |
|
| 16,014 |
|
| ||||||||||||||||
Total liabilities |
|
| 1,208,715 |
|
| 681,967 |
|
| 257,996 |
|
| 628,034 |
|
| 131,517 |
|
| ||||||||||||||||
Net assets applicable to outstanding capital stock |
| $ | 236,086,347 |
| $ | 118,016,971 |
| $ | 21,344,395 |
| $ | 57,082,542 |
| $ | 9,828,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (par value and paid-in surplus) |
| $ | 325,762,979 |
| $ | 157,475,734 |
| $ | 54,851,352 |
| $ | 104,198,510 |
| $ | 11,174,497 |
|
Undistributed (distributions in excess of) net investment income |
|
| 134,622 |
|
| (283,549 | ) |
| (5,815 | ) |
| (16,127 | ) |
| 8,974 |
|
Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
| (34,943,140 | ) |
| (13,012,040 | ) |
| (32,459,822 | ) |
| (33,996,820 | ) |
| (893,375 | ) |
Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (54,868,114 | ) |
| (26,163,174 | ) |
| (1,041,320 | ) |
| (13,103,021 | ) |
| (462,025 | ) |
| ||||||||||||||||
|
| $ | 236,086,347 |
| $ | 118,016,971 |
| $ | 21,344,395 |
| $ | 57,082,542 |
| $ | 9,828,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
|
| 7,846,412 |
|
| 13,549,120 |
|
| 2,036,106 |
|
| 2,429,430 |
|
| 801,082 |
|
Common Shares (Class S) * |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
| $ | 236,086,347 |
| $ | 118,016,971 |
| $ | 21,344,395 |
| $ | 57,082,542 |
| $ | 9,828,071 |
|
Common Shares (Class S) * |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares (Class I) * |
| $ | 30.09 |
| $ | 8.71 |
| $ | 10.48 |
| $ | 23.50 |
| $ | 12.27 |
|
Common Shares (Class S) * |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
See accompanying notes to financial statements on page 56.
49
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Six Months Ended December 31, 2008 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced |
| Dividend |
| Global |
| |||
Investment income: |
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 73,380 |
| $ | 717,758 |
| $ | 11,183 |
|
Interest |
|
| 159,123 |
|
| 18,265 |
|
| 2,233 |
|
Total income |
|
| 232,503 |
|
| 736,023 |
|
| 13,416 |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
Investment management and advisory service fee |
|
| 56,129 |
|
| 218,133 |
|
| 4,883 |
|
12b-1 Fee - Class S |
|
| — |
|
| 10,621 |
|
| 433 |
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
| 56,129 |
|
| 228,754 |
|
| 5,316 |
|
|
|
|
|
|
|
|
|
|
|
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 56,129 |
|
| 228,754 |
|
| 5,316 |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 176,374 |
|
| 507,269 |
|
| 8,100 |
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (339,700 | ) |
| (2,078,306 | ) |
| (23,175 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (2,667,767 | ) |
| (10,462,320 | ) |
| (53,130 | ) |
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| (4 | ) |
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| (3,007,467 | ) |
| (12,540,626 | ) |
| (76,309 | ) |
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 2,831,093 | ) | ($ | 12,033,357 | ) | ($ | 68,209 | ) |
|
* Dividends are net of foreign withholding tax of $5,956, $16,277, and $375 in the International Growth Fund, Developing Markets Growth Fund, and Global Dividend Growth Fund, respectively.
(**) Period from commencement of operations, September 30, 2008.
50
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Large Cap |
| Mid Cap |
| International |
| Small Cap |
| Developing |
| |||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends * |
| $ | 2,169,501 |
| $ | 545,838 |
| $ | 238,541 |
| $ | 366,056 |
| $ | 155,521 |
|
Interest |
|
| 248,443 |
|
| 94,173 |
|
| 6,249 |
|
| 171,662 |
|
| 4,850 |
|
Total income |
|
| 2,417,944 |
|
| 640,011 |
|
| 244,790 |
|
| 537,718 |
|
| 160,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses (note 3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment management and advisory service fee |
|
| 1,305,846 |
|
| 1,003,870 |
|
| 259,348 |
|
| 553,845 |
|
| 149,766 |
|
12b-1 Fee - Class S |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
| 1,305,846 |
|
| 1,003,870 |
|
| 259,348 |
|
| 553,845 |
|
| 149,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less fees and expenses absorbed by investment adviser |
|
| — |
|
| (80,310 | ) |
| (49,066 | ) |
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net expenses |
|
| 1,305,846 |
|
| 923,560 |
|
| 210,282 |
|
| 553,845 |
|
| 149,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
|
| 1,112,098 |
|
| (283,549 | ) |
| 34,508 |
|
| (16,127 | ) |
| 10,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain (loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) |
|
| (21,307,591 | ) |
| (7,416,256 | ) |
| (2,994,775 | ) |
| (5,028,073 | ) |
| (893,373 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (74,855,891 | ) |
| (76,593,570 | ) |
| (12,030,168 | ) |
| (29,185,277 | ) |
| (10,070,837 | ) |
Realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| 1,215 |
|
| — |
|
| (1,038 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on investments |
|
| (96,163,482 | ) |
| (84,009,826 | ) |
| (15,023,728 | ) |
| (34,213,350 | ) |
| (10,965,248 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
| ($ | 95,051,384 | ) | ($ | 84,293,375 | ) | ($ | 14,989,220 | ) |
| ($34,229,477 | ) | ($ | 10,954,643 | ) |
See accompanying notes to financial statements on page 56.
51
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balanced Fund |
| Dividend Growth Fund |
| ||||||||
|
| Six Months |
| Year ended |
| Six Months |
| Year ended |
| ||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 176,374 |
| $ | 288,558 |
| $ | 507,269 |
| $ | 779,691 |
|
Net realized gain (loss) on investments |
|
| (339,700 | ) |
| 455,191 |
|
| (2,078,306 | ) |
| 2,153,005 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (2,667,767 | ) |
| (988,060 | ) |
| (10,462,320 | ) |
| (4,651,033 | ) |
Net realized gain (loss) on foreign currency transactions |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) in net assets resulting from operations |
|
| (2,831,093 | ) |
| (244,311 | ) |
| (12,033,357 | ) |
| (1,718,337 | ) |
Distributions to shareholders from (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (272,000 | ) |
| (249,989 | ) |
| (619,219 | ) |
| (606,444 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| (133,781 | ) |
| (74,556 | ) |
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| — |
|
| — |
|
| (1,171,782 | ) |
| (1,924,515 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| (242,236 | ) |
| (191,378 | ) |
Total distributions |
|
| (272,000 | ) |
| (249,989 | ) |
| (2,167,018 | ) |
| (2,796,893 | ) |
Capital share transactions (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 372,939 |
|
| 1,745,748 |
|
| 1,524,591 |
|
| 8,740,816 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| 3,670,325 |
|
| 13,936,094 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 270,644 |
|
| 248,615 |
|
| 1,742,980 |
|
| 2,462,870 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| 374,810 |
|
| 265,215 |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (608,676 | ) |
| (1,089,997 | ) |
| (5,147,466 | ) |
| (3,780,160 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| (9,940,288 | ) |
| (2,066,712 | ) |
Increase (decrease) in net assets from capital share transactions |
|
| 34,907 |
|
| 904,366 |
|
| (7,775,048 | ) |
| 19,558,123 |
|
Total increase (decrease) in net assets |
|
| (3,068,186 | ) |
| 410,066 |
|
| (21,975,423 | ) |
| 15,042,893 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 12,939,405 |
|
| 12,529,339 |
|
| 55,539,556 |
|
| 40,496,663 |
|
End of period * |
| $ | 9,871,219 |
| $ | 12,939,405 |
| $ | 33,564,133 |
|
| 55,539,556 |
|
Capital transactions in shares (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 28,609 |
|
| 102,081 |
|
| 149,061 |
|
| 623,487 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| 317,733 |
|
| 1,030,568 |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 20,135 |
|
| 14,590 |
|
| 186,903 |
|
| 177,524 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| 39,643 |
|
| 19,253 |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (40,487 | ) |
| (63,511 | ) |
| (522,947 | ) |
| (269,004 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| (776,520 | ) |
| (152,868 | ) |
Net increase (decrease) |
|
| 8,257 |
|
| 53,160 |
|
| (606,127 | ) |
| 1,428,960 |
|
* includes undistributed net investment income |
| $ | 1,639 |
| $ | 97,265 |
| $ | 19,988 |
| $ | 265,719 |
|
52
|
|
|
|
|
|
|
|
| |
|
|
| ||
|
|
| ||
| |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Global Dividend Growth Fund |
| Large Cap Growth Fund |
| Mid Cap Growth Fund |
| ||||||||||||
|
| Three Months |
| Year ended |
| Six Months |
| Year ended |
| Six Months |
| Year ended |
| ||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 8,100 |
|
| — |
| $ | 1,112,098 |
| $ | 965,954 |
| ($ | 283,549 | ) | ($ | 912,063 | ) |
Net realized gain (loss) on investments |
|
| (23,175 | ) |
| — |
|
| (21,307,591 | ) |
| 1,347,416 |
|
| (7,416,256 | ) |
| 12,282,658 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (53,130 | ) |
| — |
|
| (74,855,891 | ) |
| (7,165,526 | ) |
| (76,593,570 | ) |
| (14,977,322 | ) |
Net realized gain (loss) on foreign currency transactions |
|
| (4 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) in net assets resulting from operations |
|
| (68,209 | ) |
| — |
|
| (95,051,384 | ) |
| (4,852,156 | ) |
| (84,293,375 | ) |
| (3,606,727 | ) |
Distributions to shareholders from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (3,881 | ) |
| — |
|
| (1,550,000 | ) |
| (640,031 | ) |
| — |
|
| — |
|
Common shares (Class S) |
|
| (2,119 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (1,273,462 | ) |
| (7,135,630 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (6,000 | ) |
| — |
|
| (1,550,000 | ) |
| (640,031 | ) |
| (1,273,462 | ) |
| (7,135,630 | ) |
Capital share transactions (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 1,284,626 |
|
| — |
|
| 120,977,455 |
|
| 208,273,800 |
|
| 2,951,826 |
|
| 22,370,170 |
|
Common shares (Class S) |
|
| 761,162 |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 14,051,322 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 3,881 |
|
| — |
|
| 1,534,522 |
|
| 631,433 |
|
| 1,236,478 |
|
| 6,945,803 |
|
Common shares (Class S) |
|
| 2,119 |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| — |
|
| — |
|
| (77,519,705 | ) |
| (41,459,014 | ) |
| (11,484,081 | ) |
| (27,001,040 | ) |
Common shares (Class S) |
|
| (4,865 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| 2,046,923 |
|
| — |
|
| 44,992,272 |
|
| 167,446,219 |
|
| (7,295,777 | ) |
| 16,366,255 |
|
Total increase (decrease) in net assets |
|
| 1,972,714 |
|
| — |
|
| (51,609,112 | ) |
| 161,954,032 |
|
| (92,862,614 | ) |
| 5,623,898 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| — |
|
| — |
|
| 287,695,459 |
|
| 125,741,427 |
|
| 210,879,585 |
|
| 205,255,687 |
|
End of period * |
| $ | 1,972,714 |
|
| — |
| $ | 236,086,347 |
| $ | 287,695,459 |
| $ | 118,016,971 |
| $ | 210,879,585 |
|
Capital transactions in shares (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 132,789 |
|
| — |
|
| 3,490,603 |
|
| 4,684,727 |
|
| 279,157 |
|
| 1,632,769 |
|
Common shares (Class S) |
|
| 76,160 |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 809,357 |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 423 |
|
| — |
|
| 51,719 |
|
| 14,028 |
|
| 144,280 |
|
| 441,003 |
|
Common shares (Class S) |
|
| 231 |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| — |
|
| — |
|
| (2,322,674 | ) |
| (930,264 | ) |
| (1,089,896 | ) |
| (1,734,089 | ) |
Common shares (Class S) |
|
| (521 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) |
|
| 209,082 |
|
| — |
|
| 1,219,648 |
|
| 3,768,491 |
|
| (666,459 | ) |
| 1,149,040 |
|
* includes undistributed net investment income |
| $ | 2,096 |
|
| — |
| $ | 134,622 |
| $ | 572,524 |
| $ | — |
| $ | — |
|
See accompanying notes to financial statements on page 56.
53
|
|
|
|
|
| Sit Mutual Funds |
|
|
|
| Statements of Changes in Net Assets (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| International Growth Fund |
| Small Cap Growth Fund |
| Developing Markets Growth Fund |
| ||||||||||||
|
| Six Months |
| Year ended |
| Six Months |
| Year ended |
| Six Months |
| Year ended |
| ||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 34,508 |
| $ | 307,461 |
| ($ | 16,127 | ) | ($ | 957,147 | ) | $ | 10,605 |
| ($ | 64,711 | ) |
Net realized gain (loss) on investments |
|
| (2,994,775 | ) |
| 1,973,380 |
|
| (5,028,073 | ) |
| 8,104,312 |
|
| (893,373 | ) |
| 602,948 |
|
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
| (12,030,168 | ) |
| (3,774,119 | ) |
| (29,185,277 | ) |
| (14,446,734 | ) |
| (10,070,837 | ) |
| (138,363 | ) |
Net realized gain (loss) on foreign currency transactions |
|
| 1,215 |
|
| 1,001 |
|
| — |
|
| — |
|
| (1,038 | ) |
| (106 | ) |
Net increase (decrease) in net assets resulting from operations |
|
| (14,989,220 | ) |
| (1,492,277 | ) |
| (34,229,477 | ) |
| (7,299,569 | ) |
| (10,954,643 | ) |
| 399,768 |
|
Distributions to shareholders from (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (350,000 | ) |
| (408,875 | ) |
| — |
|
| — |
|
| — |
|
| (35,294 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (602,948 | ) |
| (241,893 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (350,000 | ) |
| (408,875 | ) |
| — |
|
| — |
|
| (602,948 | ) |
| (277,187 | ) |
Capital share transactions (note 1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 750,078 |
|
| 3,309,438 |
|
| 3,584,173 |
|
| 11,785,566 |
|
| 1,835,653 |
|
| 12,009,397 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 345,271 |
|
| 400,670 |
|
|
|
|
| __ |
|
| 591,613 |
|
| 269,654 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (2,125,836 | ) |
| (3,606,064 | ) |
| (5,798,817 | ) |
| (16,759,064 | ) |
| (4,236,679 | ) |
| (7,637,020 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Increase (decrease) in net assets from capital share transactions |
|
| (1,030,487 | ) |
| 104,044 |
|
| (2,214,644 | ) |
| (4,973,498 | ) |
| (1,809,413 | ) |
| 4,642,031 |
|
Total increase (decrease) in net assets |
|
| (16,369,707 | ) |
| (1,797,108 | ) |
| (36,444,121 | ) |
| (12,273,067 | ) |
| (13,367,004 | ) |
| 4,764,612 |
|
Net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 37,714,102 |
|
| 39,511,210 |
|
| 93,526,663 |
|
| 105,799,730 |
|
| 23,195,075 |
|
| 18,430,463 |
|
End of period * |
| $ | 21,344,395 |
| $ | 37,714,102 |
| $ | 57,082,542 |
| $ | 93,526,663 |
| $ | 9,828,071 |
| $ | 23,195,075 |
|
Capital transactions in shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 61,468 |
|
| 174,630 |
|
| 134,425 |
|
| 292,167 |
|
| 109,229 |
|
| 430,789 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Fund merger (note 4) |
|
| — |
|
| — |
|
| __ |
|
| __ |
|
| __ |
|
| __ |
|
Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| 34,118 |
|
| 21,392 |
|
|
|
|
| — |
|
| 48,098 |
|
| 9,562 |
|
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (Class I) |
|
| (178,083 | ) |
| (190,170 | ) |
| (202,944 | ) |
| (429,997 | ) |
| (249,519 | ) |
| (286,042 | ) |
Common shares (Class S) |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net increase (decrease) |
|
| (82,497 | ) |
| 5,852 |
|
| (68,519 | ) |
| (137,830 | ) |
| (92,192 | ) |
| 154,309 |
|
* includes undistributed net investment income |
| $ | — |
| $ | 307,461 |
| $ | — |
| $ | — |
| $ | 8,974 |
| $ | — |
|
See accompanying notes to financial statements on page 56.
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55
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| Sit Mutual Funds |
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(1) | Summary of Significant Accounting Policies |
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| Sit Mutual Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Developing Markets Growth, Sit Small Cap Growth, Sit Dividend Growth, Sit Global Dividend Growth, Sit International Growth, and Sit Balanced, are series funds of Sit Mutual Funds, Inc. |
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| This report covers the equity funds of the Sit Mutual Funds (the Funds). Each fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows: |
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Fund |
| Investment Objective |
Balanced |
| Long-term growth consistent with the preservation of principal and to provide regular income. |
Dividend Growth |
| Provide current income that exceeds the dividend yield of the S&P 500 Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
Global Dividend Growth |
| Provide current income that exceeds the dividend yield of a composite index (60% S&P 500 Index & 40% MSCI EAFE 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. |
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| The Dividend Growth and Global Dividend Growth Funds offer 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. |
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| Significant accounting policies followed by the Funds are summarized below: |
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| Short-Term Trading (Redemption) Fees |
| The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 |
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| 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. |
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| Investments in Securities |
| Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available at the last reported bid price. The sale and bid prices are obtained from independent pricing services. Debt securities maturing more than 60 days are priced by an independent pricing service. When market quotations are not readily available, or when the Advisor becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Board of Directors. Debt securities maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost. |
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| Security transactions are accounted for on the date the securities are purchased or sold. Securities gains and losses are calculated on the identified-cost basis. Dividend income is recorded on the ex-dividend date or upon the receipt of ex-dividend notification in the case of certain foreign securities. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. |
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| Line of Credit |
| The Funds have a $25,000,000 committed line of credit through PNC Bank, N.A., whereby the Funds may borrow for the temporary funding of shareholder redemptions or for other temporary purposes. Interest is charged to each Fund based on its borrowings at a rate equal to the Federal Funds Rate plus fifty basis points (0.50%). The Funds had no borrowings outstanding during the period ended December 31, 2008. |
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| Fair Value Measurement |
| The Funds adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (FAS 157), effective April 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 establishes a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Funds’ investments. The hierarchy of inputs is summarized below: |
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| Level 1 – quoted prices in active markets for identical investments. |
| Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). |
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| Sit Mutual Funds |
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| Notes to Financial Statements (continued) |
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| The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used in valuing the Funds’ assets carried at fair value on December 31, 2008: |
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| Investment in Securities at Value |
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| Level 1 |
| Level 2 |
| Level 3 |
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Fund |
| Quoted Prices |
| Other Significant |
| Significant |
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| Total |
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Balanced |
| $ | 6,193,785 |
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| $ | 3,621,370 |
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| — |
| $ | 9,815,155 |
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Dividend Growth |
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| 33,501,568 |
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| 94,219 |
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| — |
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| 33,595,787 |
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Global Dividend Growth |
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| 1,974,957 |
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| 102,703 |
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| — |
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| 2,077,660 |
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Large Cap Growth |
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| 220,182,278 |
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| 13,298,636 |
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| — |
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| 233,480,914 |
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Mid Cap Growth |
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| 118,246,286 |
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| — |
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| — |
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| 118,246,286 |
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International Growth |
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| 5,615,130 |
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| 15,822,837 |
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| — |
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| 21,437,967 |
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Small Cap Growth |
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| 57,570,051 |
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| — |
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| — |
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| 57,570,051 |
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Developing Markets Growth |
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| 5,984,597 |
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| 3,936,801 |
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| — |
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| 9,921,398 |
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| For the period ended December 31, 2008, the Funds held no assets in which significant unobservable inputs (Level 3) were used in determining fair value. Derivative instruments such as futures, forwards, and swap contracts are not reflected in the Schedules of Investments. These instruments are valued at the unrealized appreciation/depreciation on the investment. At December 31, 2008, the Funds had no financial instruments subject to this disclosure. |
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| Foreign Currency Translations and Forward Foreign Currency Contracts |
| The market value of securities and other assets and liabilities denominated in foreign currencies for Global Dividend Growth, Developing Markets Growth and International Growth Funds 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. |
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| The Global Dividend Growth, 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. |
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| Federal Taxes |
| The Funds’ policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of 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. |
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| 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. |
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| Net investment income and net realized gains differ for financial statement and tax purposes because of losses deferred due to “wash sale” transactions. A “wash sale” occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). The character of distributions made during the year from net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid during the fiscal years ended June 30, 2008 and 2007 were as follows: |
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Year Ended June 30, 2008: |
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Fund |
| Ordinary |
| Long-Term |
| Return of Capital |
| Total |
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Balanced |
| $ | 249,989 |
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| — |
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| $ | 249,989 |
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Dividend Growth (Class I) |
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| 946,131 |
| $ | 1,584,828 |
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| — |
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| 2,530,959 |
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Dividend Growth (Class S) |
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| 108,336 |
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| 157,598 |
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| — |
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| 265,934 |
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Large Cap Growth |
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| 640,031 |
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| — |
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| — |
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| 640,031 |
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Mid Cap Growth |
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| — |
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| 7,032,835 |
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| $ | 102,795 |
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| 7,135,630 |
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International Growth |
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| 408,875 |
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| — |
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| — |
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| 408,875 |
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Small Cap Growth |
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| — |
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| — |
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| — |
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| — |
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Developing Markets Growth |
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| 35,294 |
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| 241,893 |
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| — |
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| 277,187 |
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| Sit Mutual Funds |
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| Notes to Financial Statements (continued) |
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Year Ended June 30, 2007: |
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Fund |
| Ordinary Income |
| Long-Term |
| Total |
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Balanced |
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| $ | 256,000 |
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| — |
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| $ | 256,000 |
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Dividend Growth (Class I) |
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| 561,812 |
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| $ | 356,486 |
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| 918,298 |
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Dividend Growth (Class S) |
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| 28,632 |
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| 33,155 |
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| 61,787 |
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Large Cap Growth |
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| 730,000 |
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| — |
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| 730,000 |
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Mid Cap Growth |
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| — |
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| — |
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| — |
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International Growth |
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| 326,000 |
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| — |
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| 326,000 |
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Small Cap Growth |
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| — |
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| — |
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| — |
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Developing Markets Growth |
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| 35,500 |
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| — |
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| 35,000 |
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As of June 30, 2008, the components of distributable earnings on a tax basis were as follows: | ||||||||||||||||
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Fund |
| Undistributed |
| Accumulated Capital |
| Unrealized |
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Balanced |
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| $ | 97,265 |
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| ($4,051,650 | ) |
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| $ | 1,176,726 |
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Dividend Growth |
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| 265,719 |
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| 1,414,018 |
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| 1,619,813 |
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Large Cap Growth |
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| 572,524 |
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| (13,597,546 | ) |
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| 19,949,775 |
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Mid Cap Growth |
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| — |
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| (4,238,702 | ) |
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| 50,346,776 |
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International Growth |
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| 308,462 |
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| (29,462,210 | ) |
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| 10,986,012 |
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Small Cap Growth |
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| — |
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| (28,968,747 | ) |
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| 16,082,256 |
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Developing Markets Growth |
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| — |
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| �� | 602,948 |
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| 9,608,219 |
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Undistributed net investment income and accumulated net realized gains (losses) from the Statements of Assets and Liabilities have been increased (decreased) by current permanent book-to-tax differences resulting in reclassifications as follows: | ||||||||||||||||
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Fund |
| Undistributed |
| Accumulated |
| Additional |
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Mid Cap Growth |
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| $ | 912,063 |
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| ($6,751,535 | ) |
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| $ | 5,839,472 |
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International Growth |
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| 1,001 |
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| (1,001 | ) |
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| — |
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Small Cap Growth |
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| 957,147 |
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| — |
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| (957,147 | ) |
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Developing Markets Growth |
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| 64,258 |
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| 106 |
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| (64,364 | ) |
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| 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: |
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Fund |
| Loss Carryover |
| Expiration Years |
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Balanced |
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| $ | 4,051,650 |
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| 2011-2013 |
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Large Cap Growth |
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| 13,597,546 |
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| 2011-2012 |
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Mid Cap Growth |
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| 4,238,702 |
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| 2009-2012 |
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International Growth |
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| 29,462,210 |
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| 2010-2013 |
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Small Cap Growth |
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| 28,968,747 |
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| 2011-2012 |
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| 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, Dividend Growth and Global 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. |
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| 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. |
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| 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. |
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| Sit Mutual Funds |
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| Notes to Financial Statements (continued) |
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(2) | Investment Security Transactions |
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| The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the period ended December 31, 2008, were as follow: |
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Fund |
| Purchases ($) |
| Proceeds ($) |
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Balanced |
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| $ | 1,364,730 |
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| $ | 1,629,849 |
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Dividend Growth |
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| 11,976,353 |
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| 20,592,465 |
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Global Dividend Growth |
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| 1,907,512 |
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| 28,535 |
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Large Cap Growth |
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| 68,209,095 |
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| 34,025,805 |
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Mid Cap Growth |
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| 14,940,456 |
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| 20,930,190 |
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International Growth |
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| 3,296,967 |
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| 3,783,110 |
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Small Cap Growth |
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| 8,522,014 |
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| 10,969,308 |
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Developing Markets Growth |
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| 594,420 |
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| 3,178,677 |
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(3) | Expenses |
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| 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: |
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Fund |
| Management Fee |
| Net of Advisor’s |
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Balanced |
| 1.00 | % |
| 1.00 | % |
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Dividend Growth |
| 1.00 | % |
| 1.00 | % |
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Global Dividend Growth |
| 1.25 | % |
| 1.25 | % |
|
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 | % |
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Developing Markets Growth |
| 2.00 | % |
| 2.00 | % |
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| SIA is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, 12b-1 fees and other transaction charges relating to investing activities). |
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| In addition to the annual management fees, the Class S shares of Global Dividend Growth and Dividend Growth Funds also have 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. |
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| For the periods through December 31, 2009, the Adviser has agreed to limit the management fee of the Mid Cap Growth |
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| Fund and International Growth Fund to 1.15% and 1.50% of the Fund’s average daily net assets, respectively. |
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| The Funds invest in the Sit Money Market Fund. The terms of such transactions were identical to those of non-related entities except that, to avoid duplicate investment advisory fees, SIA remits to each Fund an amount equal to all fees otherwise due to SIA under their investment management agreement for the assets invested in the Sit Money Market Fund. The Funds owned the following shares as of December 31, 2008: |
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Fund |
| Shares |
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Balanced |
| 526,000 |
|
Dividend Growth |
| 1,000 |
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Global Dividend Growth |
| 275,000 |
|
Large Cap Growth |
| 16,760,000 |
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Mid Cap Growth |
| 1,667,000 |
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International Growth |
| 425,000 |
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Small Cap Growth |
| 2,061,000 |
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Developing Markets Growth |
| 585,000 |
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| Transactions with affiliates |
| The investment adviser, affiliates of the investment adviser, directors and officers of the Funds as a whole owned the following shares as of December 31, 2008: |
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Fund |
| Shares |
| % Shares Outstanding |
| |
Balanced |
| 217,909 |
| 27.2 |
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Dividend Growth |
| 816,299 |
| 22.5 |
|
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Global Dividend Growth |
| 171,772 |
| 82.2 |
|
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Large Cap Growth |
| 424,354 |
| 5.4 |
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Mid Cap Growth |
| 3,175,662 |
| 23.4 |
|
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International Growth |
| 725,349 |
| 35.6 |
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Small Cap Growth |
| 801,076 |
| 33.0 |
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Developing Markets Growth |
| 189,825 |
| 23.7 |
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(4) | Fund Merger |
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| 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. 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. |
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| Sit Balanced Fund |
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| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Years Ended June 30, |
| ||||||||||||
|
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| ||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 16.32 |
| $ | 16.93 |
| $ | 15.14 |
| $ | 14.53 |
| $ | 13.80 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1) |
|
| .22 |
|
| .38 |
|
| .34 |
|
| .28 |
|
| .26 |
|
Net realized and unrealized gains (losses) on investments |
|
| (4.00 | ) |
| (.66 | ) |
| 1.78 |
|
| .59 |
|
| .73 |
|
Total from operations |
|
| (3.78 | ) |
| (.28 | ) |
| 2.12 |
|
| .87 |
|
| .99 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.22 | ) |
| (.33 | ) |
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.22 | ) |
| (.33 | ) |
| (.33 | ) |
| (.26 | ) |
| (.26 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 12.32 |
| $ | 16.32 |
| $ | 16.93 |
| $ | 15.14 |
| $ | 14.53 |
|
Total investment return (2) |
|
| (22.54 | )% |
| (1.72 | )% |
| 14.24 | % |
| 6.03 | % |
| 7.28 | % |
Net assets at end of period (000's omitted) |
| $ | 9,871 |
| $ | 12,939 |
| $ | 12,529 |
| $ | 11,617 |
| $ | 12,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.00 | % (4) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income to average daily net assets |
|
| 3.15 | % (4) |
| 2.22 | % |
| 2.13 | % |
| 1.84 | % |
| 1.84 | % |
Portfolio turnover rate (excluding short-term securities) |
|
| 12.43 | % |
| 54.96 | % |
| 41.63 | % |
| 50.00 | % |
| 36.32 | % |
|
|
|
|
| |
|
|
|
(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) | Percentages are adjusted to an annual rate. |
64
|
|
|
|
|
|
|
|
| |
| Sit Dividend Growth Fund Class I |
| ||
|
|
| ||
| Financial Highlights |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Six months |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
| Years Ended June 30, |
| |||||||||||||
|
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Beginning of period |
| $ | 13.11 |
| $ | 14.42 |
| $ | 12.26 |
| $ | 11.18 |
| $ | 10.14 |
| |
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net investment income (loss) (1) |
|
| .13 |
|
| .23 |
|
| .24 |
|
| .25 |
|
| .21 |
| |
Net realized and unrealized gains (losses) on investments |
|
| (3.47 | ) |
| (.63 | ) |
| 2.35 |
|
| 1.20 |
|
| 1.01 |
| |
Total from operations |
|
| (3.34 | ) |
| (.40 | ) |
| 2.59 |
|
| 1.45 |
|
| 1.22 |
| |
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
From net investment income |
|
| (.14 | ) |
| (.22 | ) |
| (.23 | ) |
| (.23 | ) |
| (.18 | ) | |
From net realized gains |
|
| (.39 | ) |
| (.69 | ) |
| (.20 | ) |
| (.14 | ) |
| — |
| |
Total distributions |
|
| (.53 | ) |
| (.91 | ) |
| (.43 | ) |
| (.37 | ) |
| (.18 | ) | |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
End of period |
| $ | 9.24 |
| $ | 13.11 |
| $ | 14.42 |
| $ | 12.26 |
| $ | 11.18 |
| |
Total investment return (2) |
|
| (24.99 | %) |
| (3.06 | %) |
| 21.48 | % |
| 13.20 | % |
| 12.12 | % | |
Net assets at end of period (000's omitted) |
| $ | 27,344 |
| $ | 41,239 |
| $ | 37,674 |
| $ | 24,137 |
| $ | 14,196 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Expenses to average daily net assets (3) |
|
| 1.00 | % (5) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % | |
Net investment income (loss) to average daily net assets |
|
| 2.37 | % (5) |
| 1.68 | % |
| 1.81 | % |
| 2.09 | % |
| 1.94 | % | |
Portfolio turnover rate (excluding short-term securities) |
|
| 26.60 | % (4) |
| 38.86 | % (4) |
| 34.02 | % (4) |
| 41.28 | % (4) |
| 54.89 | % |
|
|
|
|
| |
|
|
|
(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 56.
65
|
|
|
|
|
| Sit Dividend Growth Fund Class S |
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
| Year |
| Year |
| Three months |
| ||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 13.08 |
| $ | 14.39 |
| $ | 12.26 |
| $ | 12.28 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .12 |
|
| .20 |
|
| .21 |
|
| .05 |
|
Net realized and unrealized gains (losses) on investments |
|
| (3.46 | ) |
| (.63 | ) |
| 2.33 |
|
| (.02 | ) |
Total from operations |
|
| (3.34 | ) |
| (.43 | ) |
| 2.54 |
|
| .03 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.12 | ) |
| (.19 | ) |
| (.21 | ) |
| (.05 | ) |
From net realized gains |
|
| (.39 | ) |
| (.69 | ) |
| (.20 | ) |
| — |
|
Total distributions |
|
| (.51 | ) |
| (.88 | ) |
| (.41 | ) |
| (.05 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 9.23 |
| $ | 13.08 |
| $ | 14.39 |
| $ | 12.26 |
|
Total investment return (2) |
|
| (25.08 | %) |
| (3.27 | %) |
| 21.02 | % |
| 0.27 | % |
Net assets at end of period (000’s omitted) |
| $ | 6,220 |
| $ | 14,300 |
| $ | 2,823 |
| $ | 48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.25 | % (5) |
| 1.25 | % |
| 1.25 | % |
| 1.25 | % (5) |
Net investment income (loss) to average daily net assets |
|
| 2.12 | % (5) |
| 1.43 | % |
| 1.56 | % |
| 1.84 | % (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 26.60 | % (4) |
| 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. |
66
|
|
|
|
|
| Sit Global Dividend Growth Fund Class I |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Three months |
| |
Net Asset Value: |
|
|
|
|
Beginning of period |
| $ | 10.00 |
|
Operations: |
|
|
|
|
Net investment income (loss) (1) |
|
| .02 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.55 | ) |
Total from operations |
|
| (.53 | ) |
Distributions to Shareholders: |
|
|
|
|
From net investment income |
|
| (.03 | ) |
From net realized gains |
|
| — |
|
Total distributions |
|
| (.03 | ) |
Net Asset Value: |
|
|
|
|
End of period |
| $ | 9.44 |
|
Total investment return (2) |
|
| (5.25 | %) |
Net assets at end of period (000’s omitted) |
| $ | 1,257 |
|
|
|
|
|
|
Ratios: |
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.25 | % (5) |
Net investment income (loss) to average daily net assets |
|
| 2.18 | % (5) |
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 2.04 | % (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. |
See accompanying notes to financial statements on page 56.
67
|
|
|
|
|
| Sit Global Dividend Growth Fund Class S |
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months |
| |
Net Asset Value: |
|
|
|
|
Beginning of period |
| $ | 10.00 |
|
Operations: |
|
|
|
|
Net investment income (loss) (1) |
|
| .01 |
|
Net realized and unrealized gains (losses) on investments |
|
| (.54 | ) |
Total from operations |
|
| (.53 | ) |
Distributions to Shareholders: |
|
|
|
|
From net investment income |
|
| (.03 | ) |
From net realized gains |
|
| — |
|
Total distributions |
|
| (.03 | ) |
Net Asset Value: |
|
|
|
|
End of period |
| $ | 9.44 |
|
Total investment return (2) |
|
| (5.31 | %) |
Net assets at end of period (000’s omitted) |
| $ | 716 |
|
|
|
|
|
|
Ratios: |
|
|
|
|
Expenses to average daily net assets (3) |
|
| 1.50 | % (5) |
Net investment income (loss) to average daily net assets |
|
| 1.93 | % (5) |
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 2.04 | % (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. |
68
|
|
|
|
|
| Sit Large Cap Growth Fund |
|
| |
|
|
|
| |
| Financial Highlights |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
| |||||||||||
|
|
|
|
| ||||||||||||
|
|
| Years Ended June 30, | |||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 43.41 |
| $ | 43.99 |
| $ | 37.60 |
| $ | 34.27 |
| $ | 31.96 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .15 |
|
| .20 |
|
| .24 |
|
| .17 |
|
| .16 |
|
Net realized and unrealized gains (losses) on investments |
|
| (13.25 | ) |
| (.65 | ) |
| 6.43 |
|
| 3.23 |
|
| 2.27 |
|
Total from operations |
|
| (13.10 | ) |
| (.45 | ) |
| 6.67 |
|
| 3.40 |
|
| 2.43 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.22 | ) |
| (.13 | ) |
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.22 | ) |
| (.13 | ) |
| (.28 | ) |
| (.07 | ) |
| (.12 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 30.09 |
| $ | 43.41 |
| $ | 43.99 |
| $ | 37.60 |
| $ | 34.27 |
|
Total investment return (2) |
|
| (30.18 | %) |
| (1.03 | %) |
| 17.79 | % |
| 9.91 | % |
| 7.62 | % |
Net assets at end of period (000’s omitted) |
| $ | 236,086 |
| $ | 287,695 |
| $ | 125,741 |
| $ | 101,873 |
| $ | 69,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.00 | % (3) |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
| 1.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.85 | % (3) |
| 0.46 | % |
| 0.59 | % |
| 0.46 | % |
| 0.49 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 13.81 | % |
| 21.97 | % |
| 27.80 | % |
| 23.71 | % |
| 23.22 | % |
|
|
| |
(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) | Percentages are adjusted to an annual rate. |
69
|
|
|
|
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
|
| Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six months |
|
|
| |||||||||||
|
|
|
|
| ||||||||||||
|
|
| Years Ended June 30, | |||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 14.83 |
| $ | 15.71 |
| $ | 13.01 |
| $ | 11.28 |
| $ | 10.23 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| (.02 | ) |
| (.07 | ) |
| (.04 | ) |
| — |
|
| (.07 | ) |
Net realized and unrealized gains (losses) on investments |
|
| (6.01 | ) |
| (.31 | ) |
| 2.74 |
|
| 1.73 |
|
| 1.12 |
|
Total from operations |
|
| (6.03 | ) |
| (.38 | ) |
| 2.70 |
|
| 1.73 |
|
| 1.05 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| (.09 | ) |
| (.50 | ) |
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.09 | ) |
| (.50 | ) |
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 8.71 |
| $ | 14.83 |
| $ | 15.71 |
| $ | 13.01 |
| $ | 11.28 |
|
Total investment return (2) |
|
| (40.62 | %) |
| (2.63 | %) |
| 20.75 | % |
| 15.34 | % |
| 10.26 | % |
Net assets at end of period (000’s omitted) |
| $ | 118,017 |
| $ | 210,880 |
| $ | 205,256 |
| $ | 191,541 |
| $ | 199,449 |
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Ratios (3): |
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|
|
|
|
|
|
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) |
|
| (0.45 | %) |
| (0.52 | %) |
| (0.41 | %) |
| (0.13 | %) |
| (0.76 | %) |
Net investment income (loss) (with waiver) |
|
| (0.35 | %) |
| (0.42 | %) |
| (0.31 | %) |
| (0.03 | %) |
| (0.66 | %) |
| ||||||||||||||||
Portfolio turnover rate (excluding short-term securities) |
|
| 9.24 | % |
| 34.61 | % |
| 40.08 | % |
| 32.48 | % |
| 39.74 | % |
|
|
|
|
(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) | Percentages for the period ended December 31, 2008 are adjusted to an annual rate. |
| The ratio information is calculated based on average daily net assets. |
| Total Fund expenses are limited to 1.25% of average daily net assets. |
| However, during the periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
70
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| Sit International Growth Fund |
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| Financial Highlights |
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| Six months |
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| Years Ended June 30, | |||||||||||||
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| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 17.80 |
| $ | 18.70 |
| $ | 15.48 |
| $ | 12.31 |
| $ | 11.24 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .02 |
|
| .15 |
|
| .20 |
|
| .14 |
|
| .07 |
|
Net realized and unrealized gains (losses) on investments |
|
| (7.16 | ) |
| (.85 | ) |
| 3.17 |
|
| 3.10 |
|
| 1.03 |
|
Total from operations |
|
| (7.14 | ) |
| (.70 | ) |
| 3.37 |
|
| 3.24 |
|
| 1.10 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| (.18 | ) |
| (.20 | ) |
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.18 | ) |
| (.20 | ) |
| (.15 | ) |
| (.07 | ) |
| (.03 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 10.48 |
| $ | 17.80 |
| $ | 18.70 |
| $ | 15.48 |
| $ | 12.31 |
|
Total investment return (2) |
|
| (40.11 | %) |
| (3.82 | %) |
| 21.87 | % |
| 26.37 | % |
| 9.80 | % |
Net assets at end of period (000’s omitted) |
| $ | 21,344 |
| $ | 37,714 |
| $ | 39,511 |
| $ | 34,700 |
| $ | 29,152 |
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Ratios (3): |
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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) |
|
| (0.10 | %) |
| 0.43 | % |
| 0.84 | % |
| 0.60 | % |
| 0.21 | % |
Net investment income (loss) (with waiver) |
|
| 0.25 | % |
| 0.78 | % |
| 1.19 | % |
| 0.95 | % |
| 0.56 | % |
|
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|
|
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|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 11.72 | % |
| 16.83 | % |
| 17.25 | % |
| 20.21 | % |
| 28.27 | % |
|
|
|
|
(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) | Percentages for the period ended December 31, 2008 are adjusted to an annual rate. |
| 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 56.
71
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| Sit Small Cap Growth Fund |
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| Financial Highlights |
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| Six months |
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| |||||||||||
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| ||||||||||||
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| Years Ended June 30, | |||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 37.44 |
| $ | 40.14 |
| $ | 33.46 |
| $ | 27.74 |
| $ | 25.29 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| (.01 | ) |
| (.37 | ) |
| (.27 | ) |
| (.23 | ) |
| (.27 | ) |
Net realized and unrealized gains (losses) on investments |
|
| (13.93 | ) |
| (2.33 | ) |
| 6.95 |
|
| 5.95 |
|
| 2.72 |
|
Total from operations |
|
| (13.94 | ) |
| (2.70 | ) |
| 6.68 |
|
| 5.72 |
|
| 2.45 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
From net realized gains |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Total distributions |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 23.50 |
| $ | 37.44 |
| $ | 40.14 |
| $ | 33.46 |
| $ | 27.74 |
|
Total investment return (2) |
|
| (37.23 | %) |
| (6.73 | %) |
| 19.96 | % |
| 20.62 | % |
| 9.69 | % |
Net assets at end of period (000’s omitted) |
| $ | 57,083 |
| $ | 93,527 |
| $ | 105,800 |
| $ | 106,977 |
| $ | 180,545 |
|
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|
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Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses to average daily net assets |
|
| 1.50 | % (3) |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
| 1.50 | % |
Net investment income (loss) to average daily net assets |
|
| (0.04 | %) (3) |
| (0.93 | %) |
| (0.79 | %) |
| (0.67 | %) |
| (1.08 | %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 15.88 | % |
| 37.20 | % |
| 38.79 | % |
| 54.73 | % |
| 33.75 | % |
|
|
|
|
(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) | Percentages are adjusted to an annual rate. |
72
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|
| Sit Developing Markets Growth Fund |
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| |
|
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| |
| Financial Highlights |
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| Six months |
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| |||||||||||
|
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| ||||||||||||
|
|
| Years Ended June 30, | |||||||||||||
|
| 2008 |
| 2007 |
| 2006 |
| 2005 |
| |||||||
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
| $ | 25.97 |
| $ | 24.94 |
| $ | 17.38 |
| $ | 12.97 |
| $ | 9.89 |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) (1) |
|
| .01 |
|
| (.07 | ) |
| .05 |
|
| .04 |
|
| .06 |
|
Net realized and unrealized gains (losses) on investments |
|
| (12.89 | ) |
| 1.41 |
|
| 7.56 |
|
| 4.43 |
|
| 3.04 |
|
Total from operations |
|
| (12.88 | ) |
| 1.34 |
|
| 7.61 |
|
| 4.47 |
|
| 3.10 |
|
Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From net investment income |
|
| — |
|
| (.04 | ) |
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
From net realized gains |
|
| (.82 | ) |
| (.27 | ) |
| — |
|
| — |
|
| — |
|
Total distributions |
|
| (.82 | ) |
| (.31 | ) |
| (.05 | ) |
| (.06 | ) |
| (.02 | ) |
Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
| $ | 12.27 |
| $ | 25.97 |
| $ | 24.94 |
| $ | 17.38 |
| $ | 12.97 |
|
Total investment return (2) |
|
| (49.59 | %) |
| 5.26 | % |
| 43.82 | % |
| 34.47 | % |
| 31.32 | % |
Net assets at end of period (000’s omitted) |
| $ | 9,828 |
| $ | 23,195 |
| $ | 18,430 |
| $ | 13,057 |
| $ | 10,575 |
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|
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Ratios: |
|
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|
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|
|
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|
|
Expenses to average daily net assets (3) |
|
| 2.00 | %(4) |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
| 2.00 | % |
Net investment income (loss) to average daily net assets |
|
| 0.14 | %(4) |
| (0.27 | %) |
| 0.25 | % |
| 0.24 | % |
| 0.55 | % |
|
|
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|
|
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|
|
|
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|
|
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|
|
Portfolio turnover rate (excluding short-term securities) |
|
| 3.91 | % |
| 9.40 | % |
| 16.25 | % |
| 27.38 | % |
| 29.54 | % |
|
|
|
|
(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) | Percentages are adjusted to an annual rate. |
See accompanying notes to financial statements on page 56.
73
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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 July 1, 2008 to December 31, 2008 (except as noted for Global Dividend Growth Fund).
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 | $ 744.60 | $4.45 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
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Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 750.10 | $4.39 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
74
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Dividend Growth Fund Class S | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 749.20 | $5.48 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.75 | $6.33 |
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Global Dividend Growth Fund Class I | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 947.50 | $3.03 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,009.38 | $3.13 |
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Global Dividend Growth Fund Class S | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 946.90 | $3.64 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,008.75 | $3.76 |
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Large Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 698.20 | $4.26 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.00 | $5.06 |
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Mid Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 593.80 | $4.59 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.25 | $5.82 |
75
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| Expense Example (Continued) |
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International Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 598.90 | $6.01 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.59 |
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|
Small Cap Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 627.70 | $6.12 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.50 | $7.59 |
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Developing Markets Growth Fund | Beginning | Ending | Expenses Paid |
Actual | $1,000.00 | $ 504.10 | $ 7.54 |
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.00 | $10.10 |
76
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77
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PROXY VOTING
Each Fund follows certain policies and procedures for voting proxies for securities held in each portfolio. A description of the Funds’ proxy voting polices and procedures is available without charge upon request by calling the Funds at 1-800-332-5580.
Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available 1) without charge upon request by calling the Funds at 1-800-332-5580; and 2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds’ annual and semi-annual reports include complete lists of each portfolio’s holdings. For the first and third quarters of each fiscal year, the Funds file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) on Forms N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information on the Funds’ Forms N-Q is also available without charge upon request by calling the Funds at 1-800-332-5580.
RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
At their joint meeting held on October 20, 2008 the Boards of Directors of the Sit Mutual Funds unanimously approved the continuation for another one year period the investment management agreements entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mid Cap Growth Fund, Inc., dated November 1, 1996; Sit Large Cap Growth Fund, Inc. dated November 1, 1996, and Sit Mutual Funds Inc., dated November 1, 1992 (the “Agreements”).
The Boards approved the Agreements after a lengthy discussion and consideration of various factors relating to the Boards’ selection of SIA as the investment adviser, and the Boards’ approval of the fees to be paid under the Agreements.
Investment Adviser Criteria. The Directors began their analysis by discussing their criteria for determining the quality of an investment adviser. The Directors’ noted that their analysis is similar to that used by institutional investors in evaluating and selecting investment advisers. The Directors discussed several factors used to determine the overall quality of an investment adviser, including the following:
Investment Philosophy and Process. The Directors considered SIA’s philosophy of managing assets. With respect to equity securities, SIA identifiies growth-oriented securities issued by companies with the potential for earnings growth at a faster rate than the general economy and market index. SIA believes that earnings growth is the primary determinant of superior long-term returns for equity securities, and invests in companies
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it believes exhibit above market and consistent growth as well as conservative and cyclical growth companies. SIA’s actively managed portfolios not only concentrate on the best growth opportunities but do so at reasonable valuation levels. The Directors determined that the Stock Funds’ investment objectives are consistent with SIA’s investment philosophy and growth style. The Directors reviewed the Stock Funds’ portfolio characteristics, and noted that SIA has consistently managed the Stock Funds in a growth style and the Directors found no indication of style drift away from growth stocks over market cycles. The Directors noted that in recent years during which growth stocks have generally under-performed relative to value stocks, many funds with a stated growth style objective have actually strayed from the growth style and invested a portion of their portfolios in value stocks. This has been especially true with funds investing in international equity securities. In these instances, the Stock Funds may at times not rank favorably in comparisons with other funds investing in value stocks because the Stock Funds were disciplined in maintaining their growth style.
The Directors discussed SIA’s consistent and well-defined investment process. With respect to equity securities, SIA utilizes a team based top-down and bottom-up investment decision making process.
Investment Professionals. The Directors discussed the experience, knowledge and organizational stability of SIA and its investment professionals. The Directors noted that SIA’s senior professionals are actively involved in the investment process and have significant investment industry experience.
The Directors discussed the depth of SIA’s investment staff. The Directors noted that SIA has over 30 investment professionals. Given the investment products offered by SIA and the assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients, including the Funds, and to accommodate growth in the number of clients and assets under management for the near future. The Directors concluded that the depth of the investment staff, and in particular senior management and investment analysts, is actually greater than the Funds currently require at their present asset size. The Directors noted that SIA has the resources of a $6.6 billion investment firm working for the benefit of the Fund shareholders.
Investment Performance. The Directors reviewed and discussed the Funds’ investment performance on an absolute and comparable basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as equity growth funds.
Corporate Culture. The Directors discussed SIA’s corporate values to operate under the highest ethical and professional standards. SIA’s culture is set and practiced by senior management who insist that all professionals exhibit honesty and integrity. The Board noted that the firm’s values are evident in all of the services provided to the Funds.
Review of Specific Factors. The Directors continued their analysis by reviewing specific information on SIA and the Funds and specific terms of the Agreements, including the following.
79
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| Additional Information (Continued) |
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Investment Performance. The Directors reviewed investment performance of each Fund for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to their stated objectives and strategies on a comparable basis with funds with similar objectives and strategies.
Fees and Expenses. The Directors noted that the Funds pay SIA a monthly fee and SIA is responsible for all of the Funds’ expenses, except fees paid under a distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class S shares of Sit Dividend Growth Fund and Sit Global Dividend Growth Fund, interest, brokerage commissions and transaction charges and certain extraordinary expenses. The Directors reviewed fees paid in prior years and the fees to be paid under the Agreements, both before and after the voluntary waiver of fees by SIA with respect to the Mid Cap Growth Fund and International Growth Fund. The Directors reviewed the average and median expense ratios of mutual funds within the same investment category for each Fund. The Directors noted that each Fund’s total expense ratio compares favorably to the total expense ratios of other no-load funds within the Fund’s Morningstar category, and are lower than the average total expense ratio for the full Morningstar category. The Directors concluded that the fees paid by the Funds are reasonable and appropriate.
The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund’s assets, which included reviewing each Fund’s current and historical assets and the likelihood and magnitude of future increases in the Fund’s assets. It was noted that three of the fixed-income funds have tiered investment fee schedules after SIA’s voluntary fee waiver. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds’ assets increase. However, the Directors concluded that given the limited size of the Funds, negotiating a graduated fee structure for each Fund is unnecessary since it is unlikely that the size of the Funds will increase enough to justify a graduated fee schedule within the near future.
The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA’s income with respect to the management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate.
The Directors reviewed SIA’s investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients of SIA, and recognized that the Funds’ expenses are borne by SIA, except as noted above. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other SIA clients were appropriate and reasonable. The Directors also concluded that SIA’s profit margin with respect to the management of the Funds was appropriate.
The Directors discussed the extent to which SIA receives benefits from the relationship with the Funds such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Board concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms and are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable.
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Non-Advisory Services. The Directors considered the quality of non-advisory services which SIA provides to the Funds (and their shareholders) and the quality and depth of SIA’s non-investment personnel who provide such services. Directors concluded that the level of such services and the quality and depth of such personnel are consistent with industry standards.
Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds, and concluded that both are consistent with industry standards.
81
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Results of Shareholder Meeting Proxy Vote
The annual meeting of the shareholders of the Funds was held on October 20, 2008. Directors elected by the share- holders at the meeting were as follows: Roger J. Sit, Melvin C. Bahle, John P. Fagan, William E. Frenzel, Sidney L. Jones, Bruce C. Lueck and Donald W. Phillips. The matters voted on by the shareholders of record as of August 15, 2008 and results of the shareholders’ vote at the October 20, 2008 meeting were as follows:
Proposal One: Election of Directors
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| Sit |
| Bahle |
| Fagan |
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Small Cap Growth |
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| For |
| 1,581,102.13 |
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| 1,580,653.46 |
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| 1,580,480.97 |
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Total Shares Outstanding |
| 2,485,561.00 |
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| Against |
| 10,272.20 |
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| 107,250.87 |
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| 10,893.36 |
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Total Shares Voted |
| 1,591,374.33 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 64.02 | % |
| % For |
| 99.35 | % |
| 99.33 | % |
| 99.32 | % |
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Mid Cap Growth |
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| For |
| 7,934,693.54 |
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| 7,956,782.59 |
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| 7,959,627.46 |
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Total Shares Outstanding |
| 14,072,978.00 |
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| Against |
| 91,456.37 |
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| 69,367.32 |
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| 66,522.45 |
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Total Shares Voted |
| 8,026,149.91 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 57.03 | % |
| % For |
| 98.86 | % |
| 99.14 | % |
| 99.17 | % |
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Large Cap Growth |
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| For |
| 6,178,402.35 |
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| 6,178,921.19 |
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| 6,179,524.17 |
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Total Shares Outstanding |
| 7,244,071.00 |
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| Against |
| 252,509.32 |
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| 251,990.48 |
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| 251,387.50 |
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Total Shares Voted |
| 6,430,911.67 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 88.77 | % |
| % For |
| 96.07 | % |
| 96.08 | % |
| 96.09 | % |
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International Growth |
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| For |
| 1,187,601.42 |
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| 1,186,707.35 |
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| 1,187,601.42 |
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Total Shares Outstanding |
| 2,099,716.00 |
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| Against |
| 3,293.11 |
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| 4,187.18 |
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| 3,293.11 |
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Total Shares Voted |
| 1,190,894.53 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 56.72 | % |
| % For |
| 99.72 | % |
| 99.65 | % |
| 99.72 | % |
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Developing Markets |
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| For |
| 604,494.46 |
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| 603,135.25 |
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| 604,319.58 |
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Total Shares Outstanding |
| 874,545.00 |
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| Against |
| 7,749.19 |
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| 9,108.40 |
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| 7,924.07 |
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Total Shares Voted |
| 612,243.65 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 70.01 | % |
| % For |
| 98.73 | % |
| 98.51 | % |
| 98.71 | % |
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Balanced |
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| For |
| 514,256.86 |
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| 515,093.15 |
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| 515,462.90 |
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Total Shares Outstanding |
| 783,308.00 |
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| Against |
| 1,517.85 |
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| 681.56 |
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| 311.81 |
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Total Shares Voted |
| 515,774.71 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 65.85 | % |
| % For |
| 99.71 | % |
| 99.87 | % |
| 99.94 | % |
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Dividend Fund |
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| For |
| 2,028,818.69 |
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| 2,025,064.03 |
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| 2,026,528.69 |
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Total Shares Outstanding |
| 3,742,349.00 |
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| Against |
| 6,647.25 |
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| 10,401.91 |
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| 8,937.25 |
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Total Shares Voted |
| 2,035,465.94 |
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| Abstain |
| 0.00 |
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| 0.00 |
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| 0.00 |
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Percent of Shares Voted |
| 54.39 | % |
| % For |
| 99.67 | % |
| 99.49 | % |
| 99.56 | % |
82
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| Frenzel |
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| Jones |
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| Lueck |
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| Phillips |
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| Proposal Two: |
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Small Cap Growth |
| 1,578,512.66 |
|
| 1,569,748.14 |
|
| 1,582,474.65 |
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| 1,583,242.93 |
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| 1,559,789.96 |
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Total Shares Outstanding |
| 12,861.67 |
|
| 21,626.19 |
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| 8,899.68 |
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| 8,131.40 |
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| 22,148.39 |
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Total Shares Voted |
| 0.00 |
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| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 9,435.98 |
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Percent of Shares Voted |
| 99.19 | % |
| 98.64 | % |
| 99.44 | % |
| 99.49 | % |
| 98.02 | % |
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Mid Cap Growth |
| 7,913,154.80 |
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| 7,956,035.58 |
|
| 7,962,360.39 |
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| 7,963,908.47 |
|
| 7,915,947.03 |
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Total Shares Outstanding |
| 112,995.11 |
|
| 70,114.33 |
|
| 63,789.52 |
|
| 62,241.44 |
|
| 32,379.47 |
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Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 77,823.41 |
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Percent of Shares Voted |
| 98.59 | % |
| 99.13 | % |
| 99.21 | % |
| 99.22 | % |
| 98.63 | % |
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Large Cap Growth |
| 6,170,690.48 |
|
| 6,176,637.08 |
|
| 6,179,576.23 |
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| 6,181,856.13 |
|
| 6,237,205.06 |
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Total Shares Outstanding |
| 260,221.19 |
|
| 254,274.59 |
|
| 251,335.44 |
|
| 249,055.54 |
|
| 93,353.99 |
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Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 100,352.62 |
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Percent of Shares Voted |
| 95.95 | % |
| 96.05 | % |
| 96.09 | % |
| 96.13 | % |
| 96.99 | % |
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International Growth |
| 1,185,777.02 |
|
| 1,187,601.42 |
|
| 1,187,601.42 |
|
| 1,185,074.75 |
|
| 1,188,600.99 |
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Total Shares Outstanding |
| 5,117.51 |
|
| 3,293.11 |
|
| 3,293.11 |
|
| 5,819.78 |
|
| 1,847.95 |
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Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 445.59 |
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Percent of Shares Voted |
| 99.57 | % |
| 99.72 | % |
| 99.72 | % |
| 99.51 | % |
| 99.81 | % |
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Developing Markets |
| 604,319.58 |
|
| 603,769.60 |
|
| 604,319.58 |
|
| 603,860.11 |
|
| 604,140.92 |
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Total Shares Outstanding |
| 7,924.07 |
|
| 8,474.05 |
|
| 7,924.07 |
|
| 8,383.54 |
|
| 3,305.83 |
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Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 4,796.90 |
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Percent of Shares Voted |
| 98.71 | % |
| 98.62 | % |
| 98.71 | % |
| 98.63 | % |
| 98.68 | % |
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Balanced |
| 515,093.15 |
|
| 515,462.90 |
|
| 515,462.90 |
|
| 515,462.90 |
|
| 509,377.75 |
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Total Shares Outstanding |
| 681.56 |
|
| 311.81 |
|
| 311.81 |
|
| 311.81 |
|
| 5,041.73 |
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Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 1,355.23 |
|
Percent of Shares Voted |
| 99.87 | % |
| 99.94 | % |
| 99.94 | % |
| 99.94 | % |
| 98.76 | % |
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Dividend Fund |
| 2,026,528.69 |
|
| 1,996,310.04 |
|
| 2,027,467.69 |
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| 2,026,986.03 |
|
| 2,027,705.32 |
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Total Shares Outstanding |
| 8,937.25 |
|
| 39,155.90 |
|
| 7,998.25 |
|
| 8,479.91 |
|
| 6,222.12 |
|
Total Shares Voted |
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 0.00 |
|
| 1,538.50 |
|
Percent of Shares Voted |
| 99.56 | % |
| 98.08 | % |
| 99.61 | % |
| 99.58 | % |
| 99.62 | % |
83
Sit Mutual Funds are managed by Sit Investment Associates, Inc. Sit Investment Associates was founded by Eugene C. Sit in July 1981 and is dedicated to a single purpose, to be one of the premier investment management firms in the United States. Sit Investment Associates currently manages approximately $6.6 billion for some of America’s largest corporations, foundations and endowments.
Sit Mutual Funds are comprised of 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. |
S E M I - A N N U A L R E P O R T S T O C K F U N D S
Six Months Ended December 31, 2008
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INVESTMENT ADVISER | AUDITORS |
www.sitfunds.com
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures -
(a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12: Exhibits:
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mid Cap Growth Fund, Inc.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date February 26, 2009
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures -
(a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12: Exhibits:
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Large Cap Growth Fund, Inc.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date February 26, 2009
Item 2: Code of Ethics. Not applicable to Semi-Annual Report.
Item 3: Audit Committee Financial Expert. Not applicable to Semi-Annual Report.
Item 4: Principal Accountant Fees and Services. Not applicable to Semi-Annual Report.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10: Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures -
(a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 12: Exhibits:
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mutual Funds, Inc.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Paul E. Rasmussen |
| Paul E. Rasmussen |
| Vice President, Treasurer |
Date February 26, 2009
By (Signature and Title) | /s/ Roger J. Sit |
| Roger J. Sit |
| Chairman |
Date February 26, 2009