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)
Registrant’s telephone number, including area code:
(612) 332-3223
Date of fiscal year end: June 30, 2020
Date of reporting period: December 31, 2020
| Item 1: | Reports to Stockholders |
Semi-Annual Report
December 31, 2020
Balanced Fund
Dividend Growth Fund
Global Dividend Growth Fund
Large Cap Growth Fund
ESG Growth Fund
Mid Cap Growth Fund
Small Cap Dividend Growth Fund
Small Cap Growth Fund
International Growth Fund
Developing Markets Growth Fund
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 | | Sit Mutual Funds |
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Sit Mutual Funds STOCK FUNDS SEMI-ANNUAL REPORT TABLE OF CONTENTS |
This document must be preceded or accompanied by a Prospectus.
CHAIRMAN’S LETTER
February 4, 2021
Dear Fellow Shareholders:
We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Unprecedented global stimulus, totaling almost $30 trillion thus far, helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. However, given elevated equity market valuations, selectivity is now critical as further price gains must be accompanied by improving earnings prospects.
Economic Overview
U.S. health officials predict ready availability of COVID-19 vaccines by midyear, setting the stage for a full reopening of the economy. As the virus is brought under control, a wave of pent-up demand, inventory restocking, and business investment should take hold. Still, potential supply chain bottlenecks, logistical snags, and public resistance represent risks to the inoculation timetable. So far, the U.S. economy has proved relatively resilient post last spring’s stringent lockdowns, as robust demand for home-related and leisure goods has significantly offset a hobbled services sector. A surge in new infections hurt consumer confidence and economic activity, and the prospect of increased restrictions to rein in the outbreak also weighed on the near-term outlook, but confidence has rebounded recently on vaccine progress and an improving economy. While the immunization process is off to a slow start, President Biden has vowed to direct 100 million injections (of a two-dose regimen) in the first 100 days of his administration. We anticipate a challenging first calendar quarter 2021 for COVID-19 caseloads and year-over-year GDP growth (although now buoyed by a fresh $900 billion stimulus package) to give way to improved trends and easy comparisons in the second quarter. In the back half of 2021, the U.S. economy may very well be hitting on all cylinders, assuming no huge delays in vaccine delivery. The services sector, which contributes more than 75% to GDP from a production standpoint, represents the largest source of potential upside as social distancing restrictions end.
We expect some upward pressure on inflation, which has edged higher during the pandemic, as more people become vaccinated and the economy reopens. The CPI (Consumer Price Index) will likely rise above the Federal Reserve’s previously stated target of +2.0 percent by midyear, considering the “easy” comparison to the depressed prices of the previous summer. Nonetheless, we expect the increase in inflation to be a relatively short-term phenomenon, lasting 12 to 18 months. As the economy normalizes and pent-up demand subsides, we believe inflation pressures will naturally subside. We expect longer-term interest rates to rise with higher inflation expectations, which will lead to a steeper yield curve in 2021.
With wins in the two Georgia Senate run-off elections, Democrats now control both chambers of Congress, paving the way for higher federal spending and the party’s other policy priorities. Excluding COVID-19-related aid, President-elect Biden’s agenda calls for additional spending exceeding $7 trillion over
ten years, offset by $4 trillion in higher taxes and other revenue. Yet, razor-thin Senate control suggests moderate Democrats may temper Biden’s more ambitious policies. Increased infrastructure spending, which has bipartisan support, may prove the area with the most upside. The incoming president is seeking nearly $2 trillion in spending immediately to combat the economic downturn and the COVID-19 pandemic, although $1 trillion may be a more realistic expectation. On the negative side, business confidence may be undermined by “re-regulation” and a partial rollback in corporate tax cuts. The timing and magnitude of any change in tax policy will have significant economic and investment implications.
Another round of lockdowns and increased restrictions across Europe, though less severe than those enforced last spring, has helped slow an autumn surge in COVID-19 infections. A notable exception is the U.K., where a more contagious variant has taken hold. The region’s central banks continue to inject considerable liquidity into the financial system to backstop the economies and kickstart growth. In the last ten months alone, the European Central Bank has expanded its balance sheet +50% to €2.3 trillion, versus €2.8 trillion for the prior ten-year period. Manufacturing also continues to recover, thanks in part to solid export demand, with the December manufacturing PMI climbing to a 36-month high in the U.K. and a 32-month high in the Euro Area. Still, with services accounting for more than two-thirds of GDP, continued social distancing restrictions are pummeling economic growth, with double-digit declines in some countries in 2020. Fortunately, despite some recent hiccups, Western Europe appears well-positioned in terms of vaccine readiness and distribution capabilities.
Rock-bottom interest rates, a weakening U.S. dollar, rising commodity prices, and improving global trade are tailwinds for emerging markets. China’s economy has seen a sharp recovery in recent months, driven by increased private consumption and manufacturing capital spending. Notably, China is the only major country to report positive GDP growth for full year 2020. Given the steady economic recovery and vaccine development progress, Beijing stated it would normalize policy as the year progresses. However, insofar as 2021 marks the beginning of the nation’s 14th Five Year Plan and the 100th anniversary of the Chinese Communist Party, growth stability will remain a top priority. Thus, the pace of normalization will likely be gradual and flexible. Other emerging markets have lagged China’s strong rebound, but we remain optimistic that above-trend growth will occur in most Asian economies, particularly South Korea, India, and Singapore.
Despite our positive outlook for the global economy in the year ahead, a word of caution is in order. Governments worldwide have amassed considerable debt, which is being used to cushion the pandemic’s economic blow. Combined with demographic challenges, this will pressure global GDP growth rates over time and make the economies especially vulnerable to unexpected inflation and higher interest rates. This reality will have direct implications for our investment strategy once the cyclical rebound fades, perhaps by the end of 2021.
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| 2 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
Equity Strategy
Despite a challenging year for corporate earnings, U.S. stocks surged ahead in 2020 due to a combination of a resilient U.S. economy, massive fiscal and monetary stimulus, and positive vaccine development. To be sure, current valuations broadly reflect further improvement in corporate earnings. We believe stock picking is now critical in determining which companies can generate sufficient earnings growth to justify the valuation rebound.
Rising stock markets are an offshoot of improving prospects for corporate earnings and abundant liquidity. Plus, as central banks employ a low interest rate policy, the T.I.N.A.-effect (i.e., there-is-no-alternative) is pushing some investors out on the risk curve and into equities. The “fear of missing out” return of the day trader has also contributed to positive equity momentum. With the so-called “Fed put” firmly in place and the approval of COVID-19 vaccines, Citigroup’s strategist’s “Panic-Euphoria” model rose to an all-time high in December, surpassing investor euphoria at the height of the 2000 dotcom bubble. While some investor confidence gauges are not as extended, many are near historically peak levels. The maxim, “don’t fight the Fed,” is as true for equities as it is for bonds. However, excess liquidity (and low interest rates) is fostering speculation in some segments of financial markets, which is particularly evident in surging first-day performances of many unprofitable IPOs.
Growth equity indices outperformed their value peers considerably for the year, continuing a trend that has persisted for much of the past decade. Driven by stellar gains in large capitalization technology stocks and stay-at-home beneficiaries, the tech-heavy Russell 1000 Growth® Index produced a whopping +38.49% return in 2020.The so-called FAANG + M technology stocks (i.e., Facebook, Amazon, Apple, Netflix, Google, and Microsoft) contributed 66% and 52% to the annual returns of the S&P 500® and Russell 1000 Growth® indexes, respectively. However, breadth of stock market performance has improved considerably over the last four months of the year on encouraging COVID-19 vaccine developments.
In terms of sector positioning, the prevailing reflationary backdrop has led to a more constructive view on the financial sector, as a combination of higher interest rates, improving credit, and strong asset prices provide an earnings tailwind. We continue to overweight the technology sector but have shifted the emphasis to hardware from software due to significant valuation differentials. We believe select semiconductor and hardware companies will continue to benefit from both cyclical (i.e., business capital investment) and secular trends (e.g., A.I., cloud computing, electric vehicles, 5G communications, Internet of Things, robotics, and autonomous vehicles) that will drive growth for many years to come. We also remain positive on the outlook for industrials, although stock prices are, at least partially, discounting an improvement in most major end markets in 2021. Our holdings in industrial stocks focus on companies that will benefit from potential infrastructure legislation, a clear priority of the Biden administration. Finally,
we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments. Hospital and health-care service companies are poised to see accelerating revenue and profit growth, as utilization increases while the global pandemic abates. Medical device manufacturers will also benefit from accelerating procedure volume growth globally and currency tailwinds.
Sentiment has begun to improve for dividend-paying stocks as fears over dividend cuts have subsided in recent months. As of December 31, 2020, we calculate that over two-thirds of the S&P 500® stocks currently offer dividend yields above the 10-year Treasury yield. Corporations have been understandably hesitant to increase payouts in 2020. Nonetheless, we expect dividend growth to resume in the near term, particularly for companies with durable business models, solid balance sheets, and strong cash flow. We believe an improving economy in the year ahead will lead to an acceleration in earnings and dividend growth. This, combined with attractive valuations for dividend-paying stocks, should lead to sustained positive sentiment towards dividend-paying equities. Sentiment has also turned noticeably positive for smaller capitalization stocks. This capitalization size has trailed the overall market for the last several years. Yet, with the U.S. economy poised to gain sustainable traction, the stars are aligned for solid small cap stock performance. Small cap stocks are attractively valued and tend to be more direct beneficiaries of economic improvement.
As for international portfolios, we remain positive on equities in China, South Korea, and India, as these countries are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak. The MSCI China Index underperformed the MSCI Emerging Markets and MSCI World indexes in fourth quarter 2020 due to policy tightening concerns and renewed U.S.-China tensions. Nonetheless, we remain constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. We are cautious on Chinese Internet stocks near term given regulation uncertainties but remain optimistic on the segment’s growth prospects in the intermediate to long term. South Korean holdings include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. Our equity holdings in India are positioned in sectors that will profit from an improving domestic economy, i.e., consumer, financials, energy, information services, and industrials.
Roger J. Sit
Chairman, President, CEO and Global CIO
OBJECTIVE & STRATEGY
The dual objectives of the Sit Balanced Fund 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.
Fund Performance
The Sit Balanced Fund’s return for the 6-month period ending December 31, 2020 was +15.47%. The S&P 500® Index return was +22.16% over the period, while the Bloomberg Barclays Aggregate Bond Index gained +1.29%.
Factors that Influenced the Fund’s Performance
Returns for the fixed-income portion of the portfolio exceeded those of the Bloomberg Barclays Aggregate Bond Index for the 6-month period, as the portfolio’s significant income advantage combined with a recovery in the portfolio’s non-government-related positions to drive returns. The dark pessimistic cloud of COVID-19 affecting so many of us was pierced during the second half of the period, as it became increasingly apparent that a vaccine, even multiple vaccines, would be available months sooner than originally predicted. The Federal Reserve anchored short-term rates near zero and indicated they intend to continue to do so in the near term, further boosting bond market investor optimism. Closed-end bond funds, which tend to benefit from “risk-on” market sentiment, experienced significant price appreciation as a result and meaningfully added to returns. The portfolio’s positions in high quality agency mortgage-backed securities under-performed, as they did not experience as much price appreciation as lower quality sectors during the risk-on market environment. In fact, the structured mortgage sectors were the only ones in the portfolio to underperform the benchmark on a relative basis during the period. The outperformance in the equity portion of the Fund during the period was driven heavily by strong stock selection in the health services sector, as well as a large underweight position in the energy minerals sector. Positive stock selection in the electronic technology and consumer durables sectors also boosted returns. Key holdings during the period included HCA Healthcare, Applied Materials, and YETI Holdings. Adversely affecting performance was the Fund’s stock selection in the consumer services and process industries sectors.
Outlook and Positioning
The fixed-income portion of the portfolio is positioned to take advantage of post-COVID-19 economic normalization, which in conjunction with the massive fiscal and monetary stimulus and extensive pent-up demand by consumers is expected to drive a strengthening economy in 2021. We expect non-government holdings to continue to outperform in the near term and have overweighted allocations to closed-end bond funds and corporate bonds and underweighted government bond sectors accordingly. We continue to emphasize main-
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the S&P 500® Index and the Bloomberg Barclays Aggregate Bond Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index. This is the primary index for the equity portion of the Fund.
2 Bloomberg Barclays Aggregate Bond Index is an unmanaged market value-weighted index which measures the performance of investment grade debt securities with maturities of at least one year. This is the primary index for the fixed income portion of the Fund.
taining an income advantage relative to the benchmark, which we expect to drive outperformance over the market cycle. In the equity portion of the Fund, we have maintained a large overweight position in technology companies that should benefit from emerging secular trends, some of which have been accelerated by the COVID-19 pandemic. Additionally, we have been increasing our exposure to early-stage cyclicals (e.g., transports), which should disproportionally benefit more than the market as economic growth improves in during 2021.
As of December 31, 2020, the asset allocation of the Fund was 63% equity, 33% fixed-income, and 4% cash and equivalents.
Roger J. Sit
Bryce A. Doty
Portfolio Managers
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| 4 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
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COMPARATIVE RATES OF RETURNS | |
|
as of December 31, 2020 | |
| | | Sit Balanced Fund | | S&P 500® Index 1 | | Bloomberg Barclays Aggregate Bond Index 2 |
| | | |
Six Month | | | | 15.47 | % | | | | 22.16 | % | | | | 1.29 | % |
| | | |
One Year | | | | 20.74 | | | | | 18.40 | | | | | 7.51 | |
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Five Year | | | | 11.79 | | | | | 15.22 | | | | | 4.44 | |
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Ten Year | | | | 9.97 | | | | | 13.89 | | | | | 3.84 | |
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Since Inception (12/31/93) | | | | 7.71 | | | | | 10.16 | | | | | 5.31 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.
2 Bloomberg Barclays Aggregate Bond Index is an unmanaged market value-weighted index which measures the performance of investment grade debt securities with maturities of at least one year.
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PORTFOLIO SUMMARY | | | | |
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Net Asset Value 12/31/20: | | | $30.03 Per Share | |
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Net Asset Value 6/30/20: | | | $26.37 Per Share | |
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Total Net Assets: | | | $61.2 Million | |
Top Equity Holdings:
1. Apple, Inc.
2. Amazon.com, Inc.
3. Microsoft Corp.
4. Alphabet, Inc.
5. Visa, Inc.
Top Fixed Income Holdings:
1. U.S. Treasury Bond, 0.13%, 4/30/22
2. U.S. Treasury Inflation Indexed Bonds, 0.25%, 2/15/50
3. U.S. Treasury Bill, 0.07%, 1/21/21
4. Putnam Master Intermediate Income Trust
5. Putnam Premier Income Trust
Based on total net assets as of December 31, 2020. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Balanced Fund
Investments are grouped by economic sectors.
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| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 63.2% | | | | | | | | |
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Communications - 1.8% | | | | | | | | |
| | |
American Tower Corp. | | | 2,975 | | | | 667,769 | |
| | |
Verizon Communications, Inc. | | | 7,100 | | | | 417,125 | |
| | |
| | | | | | | 1,084,894 | |
| | |
Consumer Durables - 1.1% | | | | | | | | |
| | |
YETI Holdings, Inc. * | | | 9,600 | | | | 657,312 | |
| | |
Consumer Non-Durables - 4.0% | | | | | | | | |
| | |
Conagra Brands, Inc. | | | 8,900 | | | | 322,714 | |
| | |
Constellation Brands, Inc. | | | 2,275 | | | | 498,339 | |
| | |
Estee Lauder Cos., Inc. - Class A | | | 2,375 | | | | 632,201 | |
| | |
Mondelez International, Inc. | | | 6,300 | | | | 368,361 | |
| | |
NIKE, Inc. | | | 1,775 | | | | 251,109 | |
| | |
PepsiCo, Inc. | | | 2,475 | | | | 367,042 | |
| | |
| | | | | | | 2,439,766 | |
| | |
Consumer Services - 3.6% | | | | | | | | |
| | |
McDonald’s Corp. | | | 2,300 | | | | 493,534 | |
| | |
Starbucks Corp. | | | 4,850 | | | | 518,853 | |
| | |
Visa, Inc. | | | 5,525 | | | | 1,208,483 | |
| | |
| | | | | | | 2,220,870 | |
| | |
Electronic Technology - 9.4% | | | | | | | | |
| | |
Apple, Inc. | | | 18,125 | | | | 2,405,006 | |
| | |
Applied Materials, Inc. | | | 9,300 | | | | 802,590 | |
| | |
Broadcom, Inc. | | | 1,660 | | | | 726,831 | |
| | |
Ciena Corp. * | | | 4,450 | | | | 235,183 | |
| | |
Keysight Technologies, Inc. * | | | 5,100 | | | | 673,659 | |
| | |
NVIDIA Corp. | | | 1,250 | | | | 652,750 | |
| | |
Qualcomm, Inc. | | | 1,625 | | | | 247,552 | |
| | |
| | | | | | | 5,743,571 | |
| | |
Finance - 4.7% | | | | | | | | |
| | |
Ameriprise Financial, Inc. | | | 2,250 | | | | 437,242 | |
| | |
Aon, PLC | | | 1,900 | | | | 401,413 | |
| | |
Chubb, Ltd. | | | 2,950 | | | | 454,064 | |
| | |
First Republic Bank | | | 1,750 | | | | 257,128 | |
| | |
Goldman Sachs Group, Inc. | | | 2,100 | | | | 553,791 | |
| | |
JPMorgan Chase & Co. | | | 3,425 | | | | 435,215 | |
| | |
T Rowe Price Group, Inc. | | | 2,075 | | | | 314,134 | |
| | |
| | | | | | | 2,852,987 | |
| | |
Health Services - 2.7% | | | | | | | | |
| | |
HCA Healthcare, Inc. | | | 3,900 | | | | 641,394 | |
| | |
UnitedHealth Group, Inc. | | | 2,925 | | | | 1,025,739 | |
| | |
| | | | | | | 1,667,133 | |
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Health Technology - 6.5% | | | | | | | | |
| | |
Abbott Laboratories | | | 3,550 | | | | 388,690 | |
| | |
AbbVie, Inc. | | | 2,750 | | | | 294,662 | |
| | |
Bristol-Myers Squibb Co. | | | 7,300 | | | | 452,819 | |
| | |
Bristol-Myers Squibb Co., Rights * | | | 1,025 | | | | 707 | |
| | |
DexCom, Inc. * | | | 1,790 | | | | 661,799 | |
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| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Intuitive Surgical, Inc. * | | | 620 | | | | 507,222 | |
| | |
Johnson & Johnson | | | 3,000 | | | | 472,140 | |
| | |
Medtronic, PLC | | | 4,375 | | | | 512,488 | |
| | |
Thermo Fisher Scientific, Inc. | | | 1,525 | | | | 710,315 | |
| | |
| | | | | | | 4,000,842 | |
| | |
Process Industries - 1.4% | | | | | | | | |
| | |
Ecolab, Inc. | | | 1,875 | | | | 405,675 | |
| | |
Sherwin-Williams Co. | | | 600 | | | | 440,946 | |
| | |
| | | | | | | 846,621 | |
| | |
Producer Manufacturing - 4.1% | | | | | | | | |
| | |
3M Co. | | | 875 | | | | 152,941 | |
| | |
Honeywell International, Inc. | | | 2,275 | | | | 483,892 | |
| | |
L3Harris Technologies, Inc. | | | 2,775 | | | | 524,531 | |
| | |
Motorola Solutions, Inc. | | | 1,700 | | | | 289,102 | |
| | |
Northrop Grumman Corp. | | | 500 | | | | 152,360 | |
| | |
Parker-Hannifin Corp. | | | 450 | | | | 122,584 | |
| | |
Safran SA, ADR * | | | 13,950 | | | | 494,667 | |
| | |
Trane Technologies, PLC | | | 2,175 | | | | 315,723 | |
| | |
| | | | | | | 2,535,800 | |
| | |
Retail Trade - 5.7% | | | | | | | | |
| | |
Amazon.com, Inc. * | | | 540 | | | | 1,758,742 | |
| | |
CVS Health Corp. | | | 7,250 | | | | 495,175 | |
| | |
Home Depot, Inc. | | | 2,050 | | | | 544,521 | |
| | |
TJX Cos., Inc. | | | 6,550 | | | | 447,300 | |
| | |
Ulta Beauty, Inc. * | | | 795 | | | | 228,292 | |
| | |
| | | | | | | 3,474,030 | |
| | |
Technology Services - 16.3% | | | | | | | | |
| | |
Accenture, PLC | | | 2,025 | | | | 528,950 | |
| | |
Adobe, Inc. * | | | 1,525 | | | | 762,683 | |
| | |
Alphabet, Inc. - Class A * | | | 620 | | | | 1,086,637 | |
| | |
Alphabet, Inc. - Class C * | | | 205 | | | | 359,135 | |
| | |
Atlassian Corp., PLC * | | | 3,250 | | | | 760,078 | |
| | |
Autodesk, Inc. * | | | 1,600 | | | | 488,544 | |
| | |
DocuSign, Inc. * | | | 525 | | | | 116,708 | |
| | |
Dynatrace, Inc. * | | | 5,975 | | | | 258,538 | |
| | |
Facebook, Inc. * | | | 3,065 | | | | 837,235 | |
| | |
Intuit, Inc. | | | 1,200 | | | | 455,820 | |
| | |
Microsoft Corp. | | | 7,800 | | | | 1,734,876 | |
| | |
Paycom Software, Inc. * | | | 600 | | | | 271,350 | |
| | |
PayPal Holdings, Inc. * | | | 3,300 | | | | 772,860 | |
| | |
salesforce.com, Inc. * | | | 3,950 | | | | 878,994 | |
| | |
ServiceNow, Inc. * | | | 560 | | | | 308,241 | |
| | |
Splunk, Inc. * | | | 1,950 | | | | 331,286 | |
| | |
| | | | | | | 9,951,935 | |
| | |
Transportation - 1.4% | | | | | | | | |
| | |
FedEx Corp. | | | 1,725 | | | | 447,844 | |
| | |
Union Pacific Corp. | | | 2,050 | | | | 426,851 | |
| | |
| | | | | | | 874,695 | |
See accompanying notes to financial statements.
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| 6 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| Name of Issuer | | Quantity /Principal
Amount ($) | | | Fair Value ($) | |
| |
|
Utilities - 0.5% | |
| | |
NextEra Energy, Inc. | | | 4,140 | | | | 319,401 | |
| | |
Total Common Stocks
(cost: $22,592,457) | | | | | | | 38,669,857 | |
|
Bonds - 29.4% | |
|
Asset-Backed Securities - 1.2% | |
| | |
Bayview Opportunity Master Fund, 2017-SPL1 A, 4.00%, 10/28/64 1, 4 | | | 45,442 | | | | 47,269 | |
| | |
Credit Suisse First Boston Mortgage Corp., 2005-AGE1 M3, 1 Mo. Libor + 0.98, 1.12%, 2/25/32 1 | | | 269 | | | | 269 | |
| | |
New Century Home Equity Loan Trust, 2005-A A4W, 4.71%, 8/25/35 14 | | | 4,037 | | | | 4,090 | |
| | |
OSCAR US Funding Trust VII, LLC, 2017-2A A4, 2.76%, 12/10/24 4 | | | 89,909 | | | | 91,181 | |
| | |
Small Business Administration: | | | | | | | | |
| | |
2008-20A 1, 5.17%, 1/1/28 | | | 31,605 | | | | 34,360 | |
| | |
2007-20H 1, 5.78%, 8/1/27 | | | 30,194 | | | | 32,677 | |
Towd Point Mortgage Trust: | | | | | | | | |
| | |
2020-MH1 A1A, 2.18%, 2/25/60 1, 4 | | | 163,783 | | | | 166,700 | |
| | |
2019-MH1 A2, 3.00%, 11/25/58 1, 4 | | | 100,000 | | | | 103,321 | |
| | |
2019-SJ3 A2, 3.00%, 11/25/59 1, 4 | | | 125,000 | | | | 128,445 | |
| | |
2019-SJ1 A1, 3.75%, 11/25/58 1, 4 | | | 50,399 | | | | 50,649 | |
| | |
2019-SJ1 A2, 4.17%, 11/25/58 1, 4 | | | 100,000 | | | | 101,939 | |
| | |
| | | | | | | 760,900 | |
|
Collateralized Mortgage Obligations - 3.6% | |
| | |
Fannie Mae: | | | | | | | | |
| | |
2017-84 JP, 2.75%, 10/25/47 | | | 51,371 | | | | 54,488 | |
| | |
2003-34 A1, 6.00%, 4/25/43 | | | 32,899 | | | | 38,193 | |
| | |
2004-T1 1A1, 6.00%, 1/25/44 | | | 20,324 | | | | 23,687 | |
| | |
1999-17 C, 6.35%, 4/25/29 | | | 10,045 | | | | 11,274 | |
| | |
2001-82 ZA, 6.50%, 1/25/32 | | | 14,366 | | | | 16,253 | |
| | |
2009-30 AG, 6.50%, 5/25/39 | | | 43,400 | | | | 50,801 | |
| | |
2013-28 WD, 6.50%, 5/25/42 | | | 42,003 | | | | 50,313 | |
| | |
2004-T1 1A2, 6.50%, 1/25/44 | | | 65,486 | | | | 77,163 | |
| | |
2004-W9 2A1, 6.50%, 2/25/44 | | | 36,817 | | | | 43,392 | |
| | |
2010-108 AP, 7.00%, 9/25/40 | | | 1,600 | | | | 1,879 | |
| | |
2004-T3, 1A3, 7.00%, 2/25/44 | | | 6,751 | | | | 8,094 | |
| | |
1993-21 KA, 7.70%, 3/25/23 | | | 14,116 | | | | 14,824 | |
| | |
Freddie Mac: | | | | | | | | |
| | |
4784 BV, 3.50%, 12/15/32 | | | 100,000 | | | | 102,097 | |
| | |
4293 BA, 5.28%, 10/15/47 1 | | | 12,235 | | | | 14,062 | |
| | |
2122 ZE, 6.00%, 2/15/29 | | | 53,621 | | | | 61,513 | |
| | |
2126 C, 6.00%, 2/15/29 | | | 33,702 | | | | 38,169 | |
| | |
2485 WG, 6.00%, 8/15/32 | | | 34,288 | | | | 39,403 | |
| | |
2480 Z, 6.00%, 8/15/32 | | | 33,403 | | | | 38,097 | |
| | |
2575 QE, 6.00%, 2/15/33 | | | 16,534 | | | | 19,082 | |
| | |
2980 QA, 6.00%, 5/15/35 | | | 17,842 | | | | 21,149 | |
| | |
2283 K, 6.50%, 12/15/23 | | | 3,562 | | | | 3,773 | |
| | |
2357 ZJ, 6.50%, 9/15/31 | | | 22,751 | | | | 25,664 | |
| | |
4520 HM, 6.50%, 8/15/45 | | | 27,383 | | | | 32,789 | |
| | | | | | | | |
| |
| Name of Issuer | | Principal
Amount ($) | | | Fair Value ($) | |
| |
| | |
1142 IA, 7.00%, 10/15/21 | | | 1,741 | | | | 1,745 | |
| | |
3704 CT, 7.00%, 12/15/36 | | | 15,019 | | | | 18,264 | |
| | |
2238 PZ, 7.50%, 6/15/30 | | | 12,940 | | | | 15,454 | |
| | |
Government National Mortgage Association: | | | | | | | | |
| | |
2015-80 BA, 6.99%, 6/20/45 1 | | | 22,007 | | | | 25,546 | |
| | |
2018-147 AM, 7.00%, 10/20/48 | | | 74,589 | | | | 83,442 | |
| | |
2018-160 DA, 7.00%, 11/20/48 | | | 72,216 | | | | 81,289 | |
| | |
2014-69 W, 7.21%, 11/20/34 1 | | | 24,915 | | | | 29,179 | |
| | |
2013-133 KQ, 7.31%, 8/20/38 1 | | | 25,443 | | | | 30,139 | |
| | |
2005-74 HA, 7.50%, 9/16/35 | | | 7,255 | | | | 7,774 | |
| | |
JP Morgan Mortgage Trust: | | | | | | | | |
| | |
2019-HYB1 A5A, 3.00%, 10/25/49 1, 4 | | | 108,162 | | | | 110,819 | |
| | |
2020-8 A3, 3.00%, 3/25/51 1, 4 | | | 47,191 | | | | 48,643 | |
| | |
2019-8 A4, 3.50%, 3/25/50 1, 4 | | | 55,042 | | | | 55,418 | |
| | |
2019-9 A8, 3.50%, 5/25/50 1, 4 | | | 125,000 | | | | 127,932 | |
| | |
2020-2 A4, 3.50%, 7/25/50 1, 4 | | | 100,251 | | | | 101,697 | |
| | |
New Residential Mortgage Loan Trust: 2018-3A A1, 4.50%, 5/25/58 1, 4 | | | 64,249 | | | | 69,669 | |
| | |
PMT Loan Trust: 2013-J1 A11, 3.50%, 9/25/43 1, 4 | | | 74,409 | | | | 75,912 | |
| | |
Sequoia Mortgage Trust: | | | | | | | | |
| | |
2020-4 A5, 2.50%, 11/25/50 1, 4 | | | 94,899 | | | | 97,487 | |
| | |
2019-5 A4, 3.50%, 12/25/49 1, 4 | | | 58,301 | | | | 59,217 | |
| | |
2020-2 A4, 3.50%, 3/25/50 1, 4 | | | 95,523 | | | | 97,169 | |
| | |
Vendee Mortgage Trust: | | | | | | | | |
| | |
2008-1 B, 6.21%, 3/15/25 1 | | | 10,478 | | | | 12,177 | |
| | |
1994-2 2, 6.32%, 5/15/24 1 | | | 6,426 | | | | 6,571 | |
| | |
Wells Fargo Mortgaged Backed Securities Trust: | | | | | | | | |
| | |
2020-5 A3, 2.50%, 9/25/50 1, 4 | | | 72,216 | | | | 74,228 | |
| | |
2020-2 A17, 3.00%, 12/25/49 1, 4 | | | 83,044 | | | | 85,283 | |
| | |
2020-2 A3, 3.00%, 12/25/49 1, 4 | | | 77,392 | | | | 78,767 | |
| | |
| | | | | | | 2,179,980 | |
|
Corporate Bonds - 10.5% | |
| | |
American Airlines, 3.20%, 6/15/28 | | | 80,950 | | | | 78,934 | |
| | |
American Financial Group, 5.25%, 4/2/30 | | | 200,000 | | | | 247,490 | |
| | |
AXIS Specialty Finance, 3.90%, 7/15/29 | | | 100,000 | | | | 110,270 | |
| | |
Bank of America Corp., 3.25%, 10/21/27 | | | 100,000 | | | | 111,909 | |
| | |
Booking Holdings, Inc., 4.63%, 4/13/30 | | | 150,000 | | | | 186,387 | |
| | |
British Airways 2013-1 Class A Pass Through Trust, 4.63%, 6/20/24 4 | | | 187,454 | | | | 186,407 | |
| | |
Burlington Resources, LLC, 7.40%, 12/1/31 | | | 50,000 | | | | 74,848 | |
| | |
Cabot Corp., 3.40%, 9/15/26 | | | 183,000 | | | | 198,069 | |
| | |
Cadence BanCorp. (Subordinated), 3 Mo. Libor + 4.66, 4.88%, 3/11/25 1, 4 | | | 200,000 | | | | 198,019 | |
| | |
Canadian Pacific Railway Co., 7.13%, 10/15/31 | | | 100,000 | | | | 148,105 | |
| | |
Charles Schwab Corp., 3.25%, 5/22/29 | | | 100,000 | | | | 114,813 | |
| | |
Charles Stark Draper Laboratory, Inc., 4.39%, 9/1/48 | | | 100,000 | | | | 120,684 | |
| | |
CNO Financial Group, Inc., 5.25%, 5/30/29 | | | 100,000 | | | | 120,725 | |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Balanced Fund (Continued)
| | | | | | | | |
| |
| Name of Issuer | | Principal
Amount ($) | | | Fair Value ($) | |
| |
| | |
Comerica, Inc., 4.00%, 2/1/29 | | | 150,000 | | | | 178,700 | |
| | |
Cox Communications, Inc., 8.38%, 3/1/39 4 | | | 100,000 | | | | 172,248 | |
| | |
Delta Air Lines 2015-1 Class A Pass Through Trust, 3.88%, 7/30/27 | | | 156,592 | | | | 160,408 | |
| | |
Delta Air Lines, Inc./SkyMiles, 4.75%,
10/20/28 4 | | | 200,000 | | | | 218,302 | |
| | |
Doric Nimrod Air Alpha 2013-1 Trust, 5.25%, 5/30/23 4 | | | 28,899 | | | | 27,004 | |
| | |
Doric Nimrod Air Finance Alpha 2012-1 Trust, 5.13%, 11/30/22 4 | | | 21,052 | | | | 19,913 | |
| | |
Duke Energy Florida, LLC, 2.54%, 9/1/29 | | | 50,000 | | | | 54,065 | |
| | |
Entergy Louisiana, LLC, 4.95%, 1/15/45 | | | 150,000 | | | | 165,532 | |
| | |
Equifax, Inc., 6.90%, 7/1/28 | | | 150,000 | | | | 195,897 | |
| | |
Fidus Investment Corp., 4.75%, 1/31/26 | | | 100,000 | | | | 102,055 | |
| | |
Flex, Ltd., 4.88%, 5/12/30 | | | 200,000 | | | | 240,470 | |
| | |
Fulton Financial Corp. (Subordinated), 4.50%, 11/15/24 | | | 150,000 | | | | 166,099 | |
| | |
Georgia-Pacific, LLC, 7.38%, 12/1/25 | | | 100,000 | | | | 130,358 | |
| | |
ITT, LLC, 7.40%, 11/15/25 | | | 25,000 | | | | 31,616 | |
| | |
Johnson & Johnson, 3.55%, 3/1/36 | | | 150,000 | | | | 185,244 | |
| | |
JPMorgan Chase & Co., 8.75%, 9/1/30 | | | 100,000 | | | | 148,811 | |
| | |
Lincoln National Corp., 7.00%, 6/15/40 | | | 100,000 | | | | 153,007 | |
| | |
Mercury General Corp., 4.40%, 3/15/27 | | | 100,000 | | | | 110,734 | |
| | |
Northern Trust Corp. (Subordinated), 3 Mo. Libor + 1.13, 3.38%, 5/8/32 1 | | | 150,000 | | | | 164,475 | |
| | |
Phillips 66, 2.15%, 12/15/30 | | | 50,000 | | | | 50,759 | |
| | |
Principal Financial Group, Inc., 3 Mo. Libor + 3.04, 3.27%, 5/15/55 1 | | | 100,000 | | | | 96,000 | |
| | |
Principal Life Global Funding, 6.13%, 10/15/33 4 | | | 100,000 | | | | 145,149 | |
| | |
Schlumberger Investment SA, 2.65%, 6/26/30 | | | 150,000 | | | | 160,136 | |
| | |
Security Benefit Life Insurance Co. (Subordinated), 7.45%, 10/1/33 4 | | | 100,000 | | | | 102,363 | |
| | |
Simon Property Group LP, 2.45%, 9/13/29 | | | 150,000 | | | | 157,564 | |
| | |
Southwest Airlines Co., 2.63%, 2/10/30 | | | 185,000 | | | | 188,301 | |
| | |
Spirit Airlines 2015-1A Trust, 4.10%, 4/1/28 | | | 123,916 | | | | 117,793 | |
| | |
Union Pacific Railroad Co., 2014-1 Pass Through Trust, 3.23%, 5/14/26 | | | 119,040 | | | | 131,380 | |
| | |
United Airlines 2013-1 Class A Pass Through Trust, 4.30%, 8/15/25 | | | 175,701 | | | | 177,454 | |
| | |
United Airlines 2015-1 Class A Pass Through Trust, 3.70%, 12/1/22 | | | 125,000 | | | | 123,878 | |
| | |
Unum Group, 4.50%, 12/15/49 | | | 25,000 | | | | 26,344 | |
| | |
Wachovia Corp., (Subordinated), 7.57%,
8/1/26 14 | | | 100,000 | | | | 131,704 | |
| | |
Webster Financial Corp., 4.38%, 2/15/24 | | | 125,000 | | | | 133,729 | |
| | |
WestRock MWV, LLC, 7.95%, 2/15/31 | | | 100,000 | | | | 142,779 | |
| | |
| | | | | | | 6,406,931 | |
| | | | | | | | |
| |
| Name of Issuer | | Principal
Amount ($) | | | Fair Value ($) | |
| |
|
Federal Home Loan Mortgage Corporation - 0.2% | |
| | |
6.50%, 2/1/22 | | | 1,983 | | | | 1,998 | |
| | |
7.50%, 7/1/29 | | | 101,148 | | | | 118,414 | |
| | |
8.00%, 2/1/34 | | | 12,109 | | | | 14,548 | |
| | |
8.50%, 9/1/24 | | | 5,252 | | | | 5,316 | |
| | |
| | | | | | | 140,276 | |
|
Federal National Mortgage Association - 1.1% | |
| | |
2.68%, 2/1/35 | | | 150,000 | | | | 163,979 | |
| | |
5.50%, 10/1/33 | | | 67,840 | | | | 76,920 | |
| | |
6.50%, 2/1/24 | | | 11,863 | | | | 12,413 | |
| | |
6.50%, 9/1/27 | | | 37,996 | | | | 42,570 | |
| | |
6.50%, 6/1/40 | | | 98,095 | | | | 111,478 | |
| | |
7.00%, 1/1/32 | | | 10,204 | | | | 11,166 | |
| | |
7.00%, 3/1/33 | | | 18,611 | | | | 21,052 | |
| | |
7.00%, 12/1/38 | | | 35,234 | | | | 39,235 | |
| | |
8.00%, 6/1/24 | | | 7,590 | | | | 8,115 | |
| | |
8.00%, 1/1/31 | | | 9,976 | | | | 10,085 | |
| | |
8.00%, 2/1/31 | | | 17,647 | | | | 21,993 | |
| | |
8.00%, 9/1/37 | | | 57,857 | | | | 71,822 | |
| | |
8.43%, 7/15/26 | | | 2,443 | | | | 2,495 | |
| | |
8.50%, 10/1/30 | | | 22,743 | | | | 27,120 | |
| | |
10.00%, 6/1/31 | | | 23,649 | | | | 26,405 | |
| | |
| | | | | | | 646,848 | |
|
Government National Mortgage Association - 0.3% | |
| | |
5.00%, 5/20/48 | | | 69,156 | | | | 76,696 | |
| | |
5.75%, 12/15/22 | | | 12,928 | | | | 13,842 | |
| | |
6.50%, 11/20/38 | | | 14,918 | | | | 16,720 | |
| | |
7.00%, 12/15/24 | | | 6,997 | | | | 7,460 | |
| | |
7.00%, 11/20/27 | | | 10,602 | | | | 12,156 | |
| | |
7.00%, 9/20/29 | | | 27,479 | | | | 31,741 | |
| | |
7.00%, 9/20/38 | | | 9,980 | | | | 11,963 | |
| | |
7.50%, 4/20/32 | | | 19,205 | | | | 21,726 | |
| | |
8.00%, 7/15/24 | | | 4,017 | | | | 4,196 | |
| | |
| | | | | | | 196,500 | |
|
Taxable Municipal Securities - 7.4% | |
| | |
Bucks Co. Industrial Dev. Auth., 4.00%, 10/1/21 | | | 30,000 | | | | 30,101 | |
| | |
Buffalo State Col. Foundation Hsg. Corp., 2.80%, 11/1/30 | | | 100,000 | | | | 104,075 | |
| | |
Colorado Health Fac. Auth., 4.48%, 12/1/40 | | | 150,000 | | | | 157,150 | |
| | |
Coventry Local Sch. Dist., 2.20%, 11/1/29 | | | 200,000 | | | | 203,290 | |
| | |
Essex Co. Impt. Auth., 3.97%, 8/1/30 4 | | | 200,000 | | | | 199,768 | |
| | |
Florida Dev. Fin. Corp., 4.11%, 4/1/50 | | | 150,000 | | | | 152,792 | |
| | |
GBG, LLC, 3.50%, 6/1/37 4 | | | 150,000 | | | | 156,653 | |
| | |
Great Lakes Water Auth. Sewage Disposal System, 3.51%, 7/1/44 | | | 150,000 | | | | 161,194 | |
| | |
Kentucky Higher Edu. Student Loan Corp. (Subordinated), 5.27%, 6/1/36 | | | 100,000 | | | | 105,717 | |
| | |
LaGrange Co. Regional Utility Dist., 2.98%, 1/1/40 | | | 230,000 | | | | 232,284 | |
See accompanying notes to financial statements.
| | |
| | |
| 8 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| Name of Issuer | | Principal
Amount ($)/
Quantity | | | Fair Value ($) | |
| |
| | |
Massachusetts Edu. Auth.: | | | | | | | | |
| | |
4.00%, 1/1/32 | | | 90,000 | | | | 91,720 | |
| | |
4.41%, 7/1/34 | | | 50,000 | | | | 53,968 | |
| | |
MI Hsg. Dev. Auth., 3.53%, 6/1/50 | | | 65,000 | | | | 67,293 | |
| | |
Middleburg Heights Hosp., 4.07%, 8/1/47 | | | 100,000 | | | | 106,872 | |
| | |
MN Hsg. Fin. Agy.: | | | | | | | | |
| | |
2.31%, 1/1/27 | | | 200,000 | | | | 205,514 | |
| | |
4.73%, 1/1/49 | | | 85,000 | | | | 89,049 | |
| | |
ND Hsg. Fin. Agy., 3.70%, 7/1/33 | | | 100,000 | | | | 105,187 | |
| | |
NH Business Fin. Auth., 3.82%, 9/1/38 | | | 200,000 | | | | 204,990 | |
| | |
NJ Higher Edu. Student Assit. Auth., 3.50%, 12/1/39 8 | | | 100,000 | | | | 104,384 | |
| | |
North Hudson Sewer Auth., 2.88%, 6/1/28 | | | 150,000 | | | | 163,484 | |
| | |
NY Mortgage Agency, 2.98%, 10/1/40 | | | 150,000 | | | | 151,238 | |
| | |
Oregon State Fac. Auth., 3.29%, 10/1/40 | | | 100,000 | | | | 98,945 | |
| | |
Public Fin. Auth., 4.23%, 7/1/32 | | | 105,000 | | | | 126,521 | |
| | |
So. Dakota Hsg. Dev. Auth., 3.89%, 5/1/32 | | | 15,000 | | | | 15,985 | |
| | |
South Carolina Ports Auth., 3.88%, 7/1/55 | | | 150,000 | | | | 156,648 | |
| | |
South Carolina Student Loan Corp., 2.92%, 12/1/28 | | | 200,000 | | | | 200,724 | |
| | |
St. John’s Co. Indst. Dev. Auth.: | | | | | | | | |
| | |
3.80%, 10/1/50 | | | 235,000 | | | | 241,298 | |
| | |
4.00%, 8/1/50 | | | 200,000 | | | | 201,034 | |
| | |
Texas Children’s Hospital, 3.37%, 10/1/29 17 | | | 115,000 | | | | 130,152 | |
| | |
Tulane University, 0.52%, 2/15/36 1 | | | 90,000 | | | | 84,833 | |
| | |
Utah Charter Sch. Fin. Auth., 2.40%, 10/15/27 | | | 205,000 | | | | 207,335 | |
| | |
Westchester Co. Local Dev. Corp., 3.85%, 11/1/50 | | | 200,000 | | | | 209,044 | |
| | |
| | | | | | | 4,519,242 | |
|
U.S. Treasury / Federal Agency Securities - 5.1% | |
| | |
U.S. Treasury Bill, 0.07%, 1/21/21 6 | | | 350,000 | | | | 349,985 | |
| | |
U.S. Treasury Bond, 0.13%, 4/30/22 | | | 2,000,000 | | | | 2,000,469 | |
| | |
U.S. Treasury Inflation Indexed Bonds: | | | | | | | | |
| | |
0.13%, 1/15/30 | | | 101,207 | | | | 112,891 | |
| | |
0.13%, 7/15/30 | | | 203,118 | | | | 227,831 | |
0.25%, 2/15/50 | | | 354,484 | | | | 422,283 | |
| | |
| | | | | | | 3,113,459 | |
| | |
Total Bonds
(cost: $17,371,402) | | | | | | | 17,964,136 | |
| | |
Investment Companies - 3.4% | | | | | | | | |
| | |
BlackRock Enhanced Government Fund | | | 4,886 | | | | 65,746 | |
| | |
BlackRock Income Trust | | | 23,300 | | | | 141,431 | |
| | |
DoubleLine Opportunistic Credit Fund | | | 10,411 | | | | 204,576 | |
| | |
Duff & Phelps Utility & Corp. Bond Tr., Inc. | | | 8,900 | | | | 89,178 | |
| | |
Eaton Vance Short Duration Div. Inc. Fund | | | 14,000 | | | | 173,040 | |
| | |
Eaton Vance, Ltd. Duration Inc. Fund | | | 15,700 | | | | 196,721 | |
| | |
Franklin, Ltd. Duration, Income Trust | | | 21,600 | | | | 203,472 | |
| | |
MFS Intermediate Income Trust | | | 24,500 | | | | 93,345 | |
| | |
Nuveen Multi-Market Income Fund, Inc. | | | 3,953 | | | | 28,422 | |
| | | | | | | | |
| |
| | |
| Name of Issue | | Quantity | | | Fair Value ($) | |
| |
| | |
Nuveen Preferred & Income Securities Fund | | | 10,400 | | | | 101,192 | |
| | |
Putnam Master Intermediate Income Trust | | | 67,300 | | | | 284,679 | |
| | |
Putnam Premier Income Trust | | | 60,375 | | | | 280,744 | |
| | |
WA Inflation-Linked Opp. & Inc. Fund | | | 209 | | | | 2,594 | |
| | |
WA Inflation-Linked Sec. & Inc. Fund | | | 15,200 | | | | 207,328 | |
| | |
Total Investment Companies
(cost: $1,936,209) | | | | | | | 2,072,468 | |
| | |
Short-Term Securities - 3.7% | | | | | | | | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 2,295,568 | | | | 2,295,568 | |
(cost: $2,295,568) | | | | | | | | |
| | |
Total Investments in Securities - 99.7%
(cost: $44,195,636) | | | | | | | 61,002,029 | |
| | |
Other Assets and Liabilities, net - 0.3% | | | | | | | 186,314 | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 61,188,343 | |
| | | | | | | | |
| * | Non-income producing security. |
| 1 | Variable rate security. Rate disclosed is as of December 31, 2020. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. |
| 4 | 144A Restricted Security. The total value of such securities as of December 31, 2020 was $3,197,571 and represented 5.2% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. |
| 6 | Zero coupon or convertible capital appreciation bond, for which the rate disclosed is either the effective yield on purchase date or the coupon rate to be paid upon conversion to coupon paying. |
| 8 | Securities the income from which is treated as a tax preference that is included in alternative minimum taxable income for purposes of computing federal alternative minimum tax (AMT). At December 31, 2020, 0.2% of net assets in the Fund was invested in such securities. |
| 14 | Step Coupon: A bond that pays a coupon rate that increases on a specified date(s). Rate disclosed is as of December 31, 2020. |
| 17 | Security that is either an absolute and unconditional obligation of the United States Government or is collateralized by securities, loans, or leases guaranteed by the U.S. Government or its agencies or instrumentalities. |
ADR — American Depositary Receipt
LLC — Limited Liability Company
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Balanced Fund (Continued)
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | | | |
| | | Investment in Securities |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | Level 2 Other significant
observable inputs ($) | | | Level 3 Significant
unobservable inputs ($) | | Total ($) |
| | | | |
Common Stocks ** | | | 38,669,857 | | | | — | | | — | | | 38,669,857 | |
Asset-Backed Securities | | | — | | | | 760,900 | | | — | | | 760,900 | |
Collateralized Mortgage Obligations | | | — | | | | 2,179,980 | | | — | | | 2,179,980 | |
Corporate Bonds | | | — | | | | 6,406,931 | | | — | | | 6,406,931 | |
Federal Home Loan Mortgage Corporation | | | — | | | | 140,276 | | | — | | | 140,276 | |
Federal National Mortgage Association | | | — | | | | 646,848 | | | — | | | 646,848 | |
Government National Mortgage Association | | | — | | | | 196,500 | | | — | | | 196,500 | |
Taxable Municipal Securities | | | — | | | | 4,519,242 | | | — | | | 4,519,242 | |
U.S. Treasury / Federal Agency Securities | | | — | | | | 3,113,459 | | | — | | | 3,113,459 | |
Investment Companies | | | 2,072,468 | | | | — | | | — | | | 2,072,468 | |
Short-Term Securities | | | 2,295,568 | | | | — | | | — | | | 2,295,568 | |
| | | | |
| | | | |
Total: | | | 43,037,893 | | | | 17,964,136 | | | — | | | 61,002,029 | |
| | | | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
| | |
| | |
| 10 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
[This page intentionally left blank.]
|
|
Sit Dividend Growth Fund - Class I and Class S |
OBJECTIVE & STRATEGY
The objective of the Sit Dividend Growth Fund is to provide current income that exceeds the dividend yield of the S&P 500® Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.
Fund Performance
The Sit Dividend Growth Fund Class I posted a +20.66% return during the 6-month period ending December 31, 2020, compared with the +22.16% return for the S&P 500® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 2.08% as of 12/31/ 20, compared with 1.62% for the S&P 500® Index.
Factors that Influenced the Fund’s Performance
Although the Fund posted strong absolute returns over the 6-month period, it underperformed the S&P500® Index. The key reason was the exceptional returns for non-dividend-paying stocks during the COVID-19 outbreak (i.e., Non-dividend paying stocks in the S&P 500® were up +27% during the period compared with +20% for dividend-paying stocks.). The two main sectors that led to underperformance during the period were utilities and consumer services. The Fund maintained an overweight position in the utilities sector, as valuations and high dividend yields appeared attractive. However, with investors rotating into more cyclical sectors and away from stay-at-home beneficiaries, the sector lagged the overall market. Regarding the consumer services sector, the Fund’s performance was negatively affected by not owning reopening economy beneficiaries, such as Walt Disney and Starbucks, as well as underweighting the group. Numerous companies in the sector benefitted from an increase in technology investment during the pandemic, but many of them do not pay dividends. Conversely, the Fund benefitted from a large overweight position and stock selection in the electronic technology sector. Many of these companies were beneficiaries of increased technology spending. Key holdings included Qualcomm and Analog Devices. Stock selection in the producer manufacturing sector and an underweight position in the retail trade sector also helped performance.
Outlook and Positioning
Sentiment has begun to improve for dividend-paying stocks, as fears over dividend cuts have subsided in recent months. As of December 31, 2020, we calculate that over two-thirds of S&P 500® stocks currently offer dividend yields above the 10-year Treasury yield. With the economy beginning to gradually reopen, we expect attention to shift from fears of payout cuts to focus on companies increasing cash flow returns to shareholders as business models stabilize, which will provide a tailwind for dividend-paying stocks. Within this
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the S&P 500® Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index. This is the Fund’s primary index.
framework, we believe one must be selective, and our focus remains on owning only dividend-paying stocks with strong balance sheets and cash flow generation, with business models that are not susceptible to large-scale disruptions from secular changes. Our favorite sectors include electronic technology and healthcare technology. Electronic technology should benefit from secular market shifts, many of which accelerated during the pandemic as companies invested in technology to facilitate a migration to work from home. In health-care technology, the Fund is focused on companies that will benefit from aging demographics and company-specific innovation. We remain positive on the outlook for industrials, although equity prices are already somewhat discounting an improvement in most major end markets in 2021 We continue to believe that a diversified portfolio of high quality, dividend-paying companies provides investors the opportunity to participate in market gains, while also offering them downside protection if market fundamentals deteriorate.
Roger J. Sit
Kent L. Johnson
Portfolio Managers
| | |
| | |
| 12 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | |
COMPARATIVE RATES OF RETURNS | |
|
as of December 31, 2020 | |
| | | Sit Dividend
Growth Fund | | S&P 500® |
| | | Class I | | Class S | | Index 1 |
| | | |
Six Month | | | | 20.66 | % | | | | 20.56 | % | | | | 22.16 | % |
| | | |
One Year | | | | 13.97 | | | | | 13.67 | | | | | 18.40 | |
| | | |
Five Year | | | | 12.85 | | | | | 12.58 | | | | | 15.22 | |
| | | |
Ten Year | | | | 11.98 | | | | | 11.70 | | | | | 13.89 | |
| | | |
| Since Inception - Class I (12/31/03) | | | | 10.14 | | | | | n/a | | | | | 9.63 | |
| | | |
| Since Inception - Class S (3/31/06) | | | | n/a | | | | | 9.60 | | | | | 9.74 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.
| | | | |
PORTFOLIO SUMMARY | |
| |
Class I: | | | | |
| |
Net Asset Value 12/31/20: | | | $15.21 Per Share | |
| |
Net Asset Value 6/30/20: | | | $13.48 Per Share | |
| |
Total Net Assets: | | | $193.0 Million | |
| |
Class S: | | | | |
| |
Net Asset Value 12/31/20: | | | $15.13 Per Share | |
| |
Net Asset Value 6/30/20: | | | $13.40 Per Share | |
| |
Total Net Assets: | | | $29.8 Million | |
| |
Weighted Average Market Cap: | | | $361.5 Billion | |
TOP 10 HOLDINGS
1. Apple, Inc.
2. Microsoft Corp.
3. Johnson & Johnson
4. Broadcom, Inc.
5. Verizon Communications, Inc.
6. Procter & Gamble Co.
7. Qualcomm, Inc.
8. Applied Materials, Inc.
9. PepsiCo, Inc.
10. Medtronic, PLC
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Dividend Growth Fund
Investments are grouped by economic sectors.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 99.6% | | | | | | | | |
| | |
Communications - 3.4% | | | | | | | | |
| | |
American Tower Corp. | | | 14,675 | | | | 3,293,950 | |
| | |
Verizon Communications, Inc. | | | 71,600 | | | | 4,206,500 | |
| | |
| | | | | | | 7,500,450 | |
| | |
Consumer Durables - 1.0% | | | | | | | | |
| | |
Activision Blizzard, Inc. | | | 23,625 | | | | 2,193,581 | |
| | |
Consumer Non-Durables - 8.2% | | | | | | | | |
| | |
Coca-Cola Co. | | | 41,075 | | | | 2,252,553 | |
| | |
Conagra Brands, Inc. | | | 56,900 | | | | 2,063,194 | |
| | |
Mondelez International, Inc. | | | 46,700 | | | | 2,730,549 | |
| | |
NIKE, Inc. | | | 12,425 | | | | 1,757,765 | |
| | |
PepsiCo, Inc. | | | 25,925 | | | | 3,844,678 | |
| | |
Procter & Gamble Co. | | | 29,725 | | | | 4,135,936 | |
| | |
Tyson Foods, Inc. | | | 24,425 | | | | 1,573,947 | |
| | |
| | | | | | | 18,358,622 | |
| | |
Consumer Services - 3.0% | | | | | | | | |
| | |
McDonald’s Corp. | | | 14,175 | | | | 3,041,672 | |
| | |
Visa, Inc. | | | 16,740 | | | | 3,661,540 | |
| | |
| | | | | | | 6,703,212 | |
| |
Electronic Technology - 19.0% | | | | | |
| | |
Analog Devices, Inc. | | | 24,225 | | | | 3,578,759 | |
| | |
Apple, Inc. | | | 104,125 | | | | 13,816,346 | |
| | |
Applied Materials, Inc. | | | 46,225 | | | | 3,989,218 | |
| | |
Broadcom, Inc. | | | 11,925 | | | | 5,221,361 | |
| | |
Garmin, Ltd. | | | 20,250 | | | | 2,423,115 | |
| | |
Keysight Technologies, Inc. * | | | 13,675 | | | | 1,806,331 | |
| | |
Marvell Technology Group, Ltd. | | | 38,525 | | | | 1,831,478 | |
| | |
Qualcomm, Inc. | | | 26,475 | | | | 4,033,202 | |
| | |
Skyworks Solutions, Inc. | | | 18,875 | | | | 2,885,610 | |
| | |
TE Connectivity, Ltd. | | | 21,950 | | | | 2,657,486 | |
| | |
| | | | | | | 42,242,906 | |
| | |
Finance - 16.1% | | | | | | | | |
| | |
American Financial Group, Inc. | | | 34,975 | | | | 3,064,510 | |
| | |
Ameriprise Financial, Inc. | | | 14,025 | | | | 2,725,478 | |
| | |
Aon, PLC | | | 10,675 | | | | 2,255,307 | |
| | |
BlackRock, Inc. | | | 3,600 | | | | 2,597,544 | |
| | |
Chubb, Ltd. | | | 19,950 | | | | 3,070,704 | |
| | |
Everest Re Group, Ltd. | | | 9,600 | | | | 2,247,264 | |
| | |
Goldman Sachs Group, Inc. | | | 12,650 | | | | 3,335,932 | |
| | |
JPMorgan Chase & Co. | | | 25,125 | | | | 3,192,634 | |
| | |
MetLife, Inc. | | | 69,900 | | | | 3,281,805 | |
| | |
Morgan Stanley | | | 51,950 | | | | 3,560,134 | |
| | |
Physicians Realty Trust | | | 69,400 | | | | 1,235,320 | |
| | |
Realty Income Corp. | | | 44,875 | | | | 2,789,879 | |
| | |
Synchrony Financial | | | 70,000 | | | | 2,429,700 | |
| | |
| | | | | | | 35,786,211 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Health Services - 2.3% | | | | | | | | |
| | |
Quest Diagnostics, Inc. | | | 14,600 | | | | 1,739,882 | |
| | |
UnitedHealth Group, Inc. | | | 9,550 | | | | 3,348,994 | |
| | |
| | | | | | | 5,088,876 | |
| | |
Health Technology - 13.6% | | | | | | | | |
| | |
Abbott Laboratories | | | 27,400 | | | | 3,000,026 | |
| | |
AbbVie, Inc. | | | 31,200 | | | | 3,343,080 | |
| | |
Agilent Technologies, Inc. | | | 13,225 | | | | 1,567,030 | |
| | |
AstraZeneca, PLC, ADR | | | 44,625 | | | | 2,230,804 | |
| | |
Bristol-Myers Squibb Co. | | | 57,175 | | | | 3,546,565 | |
| | |
Johnson & Johnson | | | 37,700 | | | | 5,933,226 | |
| | |
Medtronic, PLC | | | 32,475 | | | | 3,804,122 | |
| | |
Merck & Co., Inc. | | | 34,825 | | | | 2,848,685 | |
| | |
Sanofi, ADR | | | 40,500 | | | | 1,967,895 | |
| | |
Zimmer Biomet Holdings, Inc. | | | 14,225 | | | | 2,191,930 | |
| | |
| | | | | | | 30,433,363 | |
| | |
Industrial Services - 1.5% | | | | | | | | |
| | |
Jacobs Engineering Group, Inc. | | | 13,575 | | | | 1,479,132 | |
| | |
TC Energy Corp. | | | 48,400 | | | | 1,970,848 | |
| | |
| | | | | | | 3,449,980 | |
| | |
Non-Energy Minerals - 1.1% | | | | | | | | |
| | |
BHP Group, Ltd., ADR | | | 37,450 | | | | 2,446,983 | |
| | |
Process Industries - 1.4% | | | | | | | | |
| | |
Air Products & Chemicals, Inc. | | | 11,225 | | | | 3,066,894 | |
| |
Producer Manufacturing - 6.0% | | | | | |
| | |
Deere & Co. | | | 8,050 | | | | 2,165,852 | |
| | |
Dover Corp. | | | 19,625 | | | | 2,477,656 | |
| | |
Eaton Corp., PLC | | | 17,900 | | | | 2,150,506 | |
| | |
Honeywell International, Inc. | | | 12,050 | | | | 2,563,035 | |
| | |
Lockheed Martin Corp. | | | 5,365 | | | | 1,904,468 | |
| | |
Parker-Hannifin Corp. | | | 8,050 | | | | 2,192,900 | |
| | |
| | | | | | | 13,454,417 | |
| | |
Retail Trade - 4.9% | | | | | | | | |
| | |
CVS Health Corp. | | | 29,200 | | | | 1,994,360 | |
| | |
Home Depot, Inc. | | | 13,575 | | | | 3,605,792 | |
| | |
Target Corp. | | | 18,625 | | | | 3,287,871 | |
| | |
TJX Cos., Inc. | | | 28,575 | | | | 1,951,387 | |
| | |
| | | | | | | 10,839,410 | |
| | |
Technology Services - 10.7% | | | | | | | | |
| | |
Accenture, PLC | | | 11,300 | | | | 2,951,673 | |
| | |
Alphabet, Inc. - Class A * | | | 1,600 | | | | 2,804,224 | |
| | |
Facebook, Inc. * | | | 8,000 | | | | 2,185,280 | |
| | |
Microsoft Corp. | | | 56,850 | | | | 12,644,577 | |
| | |
Oracle Corp. | | | 49,075 | | | | 3,174,662 | |
| | |
| | | | | | | 23,760,416 | |
See accompanying notes to financial statements.
| | |
| | |
| 14 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Transportation - 2.7% | | | | | | | | |
| | |
FedEx Corp. | | | 11,225 | | | | 2,914,234 | |
| | |
Union Pacific Corp. | | | 15,300 | | | | 3,185,766 | |
| | |
| | | | | | | 6,100,000 | |
| | |
Utilities - 4.7% | | | | | | | | |
| | |
Dominion Resources, Inc. | | | 48,025 | | | | 3,611,480 | |
| | |
Entergy Corp. | | | 35,025 | | | | 3,496,896 | |
| | |
NextEra Energy, Inc. | | | 43,100 | | | | 3,325,165 | |
| | |
| | | | | | | 10,433,541 | |
| | |
Total Common Stocks
(cost: $159,168,745) | | | | | | | 221,858,862 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Short-Term Securities - 0.1% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 283,830 | | | | 283,830 | |
(cost: $283,830) | | | | | | | | |
| | |
Total Investments in Securities - 99.7%
(cost: $159,452,575) | | | | | | | 222,142,692 | |
| | |
Other Assets and Liabilities, net - 0.3% | | | | | | | 577,684 | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 222,720,376 | |
| | | | | | | | |
| * | Non-income producing security. |
ADR — American Depositary Receipt
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant observable inputs ($) | | Level 3 Significant
unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks ** | | | 221,858,862 | | | — | | — | | | 221,858,862 | |
Short-Term Securities | | | 283,830 | | | — | | — | | | 283,830 | |
| | | | |
Total: | | | 222,142,692 | | | — | | — | | | 222,142,692 | |
| | | | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit Global Dividend Growth Fund - Class I and Class S |
OBJECTIVE & STRATEGY
The objective of the Sit Global Dividend Growth Fund is to provide current income that exceeds the dividend yield of the MSCI World Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks issued by U.S. and foreign companies. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.
Fund Performance
Sit Global Dividend Growth Fund Class I shares provided a return of +20.65% during the 6-month period ending December 31, 2020, compared with the +23.00% return for the MSCI World Index. Currently, the Fund has a dividend yield of 1.82%, versus a 1.87% dividend yield for the MSCI World Index.
Factors that Influenced the Fund’s Performance
Contributing favorably to performance during the 6-month period were the Fund’s holdings in the technology hardware & equipment (Logitech International and Apple) and consumer services (Starbucks) sectors, its underweight of the household & personal products sector, and its overweight of the diversified financial sector (Partners Group, Macquarie Group, and Goldman Sachs Group). Conversely, underweighting and stock selection (RELX) in the media & entertainment sector, underweighting the automobiles sector, and overweighting the food beverage & tobacco sector detracted from relative performance. The Fund was also hurt by its cash position.
Geographically, the Fund’s exposure to the Euroland (Logitech International and Partners Group) and Asia/Pacific Ex Japan (Broadcom, Atlassian and Macquarie Group) regions added value due to positive stock selection during the 6-month period. However, exposure to the United Kingdom (AstraZeneca, DS Smith, and RELX) and North America (owning Microsoft and Lockheed Martin, and not owning Tesla) regions negatively impacted relative performance, due to both stock selection and geographic allocation.
Outlook and Positioning
We remain constructive on U.S. equities over the intermediate term and think participation in market gains will continue to broaden beyond the large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. Near-term tailwinds for stocks include positive seasonality, elevated cash levels, global stimulus, vaccine deployment, easing financial conditions, and valuations that are attractive relative to bonds. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. With vaccines now being deployed, investors are looking past the current surge in new COVID-19 infections to an acceleration in economic growth by the second half of 2021. We continue to overweight the technology
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the MSCI World Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index. This is the Fund’s primary index.
sector but have shifted the emphasis to hardware from software due to valuation concerns. We also remain positive on the outlook for industrials, although stock prices are, at least partially, discounting an improvement in most major end markets in 2021. Finally, we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments.
For non-U.S. equities, we continue to overweight the Euroland and United Kingdom regions, most notably Switzerland, the United Kingdom, and Germany. This positioning is more a function of our confidence in individual stock performances than our expectation for regional outperformance. As a firm, we also remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak.
Roger J. Sit Raymond E. Sit
Kent L. Johnson
Portfolio Managers
| | |
| | |
| 16 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
as of December 31, 2020
| | | | | | | | | | | | | | | |
| | | Sit Global | | |
| | | Dividend | | MSCI |
| | | Growth Fund | | World |
| | | Class I | | Class S | | Index 1 |
| | | |
Six Months | | | | 20.65 | % | | | | 20.57 | % | | | | 23.00 | % |
| | | |
One Year | | | | 16.00 | | | | | 15.77 | | | | | 15.90 | |
| | | |
Five Year | | | | 10.79 | | | | | 10.53 | | | | | 12.19 | |
| | | |
Ten Year | | | | 8.77 | | | | | 8.50 | | | | | 9.87 | |
| | | |
Since Inception (9/30/08) | | | | 9.53 | | | | | 9.26 | | | | | 9.11 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index.
PORTFOLIO SUMMARY
| | | | |
Class I: | | | | |
| |
Net Asset Value 12/31/20: | | | $20.17 Per Share | |
| |
Net Asset Value 6/30/20: | | | $16.87 Per Share | |
| |
Total Net Assets: | | | $37.4 Million | |
| |
Class S: | | | | |
| |
Net Asset Value 12/31/20: | | | $20.17 Per Share | |
| |
Net Asset Value 6/30/20: | | | $16.85 Per Share | |
| |
Total Net Assets: | | | $3.7 Million | |
| |
Weighted Average Market Cap: | | | $367.0 Billion | |
TOP 10 HOLDINGS
1. Microsoft Corp.
2. Apple, Inc.
3. Logitech International SA
4. Johnson & Johnson
5. Accenture, PLC
6. JPMorgan Chase & Co.
7. Lonza Group AG
8. Atlassian Corp., PLC
9. Abbott Laboratories
10. Nestle SA
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Global Dividend Growth Fund
Investments are grouped by geographic region.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 98.8% | | | | | | | | |
| | |
Asia - 6.6% | | | | | | | | |
| | |
Australia - 3.3% | | | | | | | | |
| | |
Atlassian Corp., PLC * | | | 3,925 | | | | 917,940 | |
| | |
Macquarie Group, Ltd. | | | 3,900 | | | | 416,369 | |
| | |
| | | | | | | 1,334,309 | |
| | |
Japan - 2.2% | | | | | | | | |
| | |
Astellas Pharma, Inc. | | | 29,900 | | | | 461,582 | |
| | |
Recruit Holdings Co., Ltd. | | | 10,800 | | | | 451,957 | |
| | |
| | | | | | | 913,539 | |
| | |
Singapore - 1.1% | | | | | | | | |
| | |
Singapore Technologies Engineering, Ltd. | | | 158,600 | | | | 458,423 | |
| | |
Europe - 31.8% | | | | | | | | |
| | |
France - 0.9% | | | | | | | | |
| | |
Safran SA, ADR * | | | 4,900 | | | | 173,754 | |
| | |
Sanofi, ADR | | | 3,800 | | | | 184,642 | |
| | |
| | | | | | | 358,396 | |
| | |
Germany - 5.0% | | | | | | | | |
| | |
adidas AG * | | | 1,385 | | | | 504,042 | |
| | |
Allianz SE, ADR | | | 35,000 | | | | 862,750 | |
| | |
Muenchener Rueckversicherungs AG | | | 650 | | | | 192,801 | |
| | |
Siemens AG | | | 3,200 | | | | 459,419 | |
| | |
Siemens Energy AG * | | | 1,600 | | | | 58,639 | |
| | |
| | | | | | | 2,077,651 | |
| | |
Ireland - 4.7% | | | | | | | | |
| | |
Accenture, PLC | | | 3,675 | | | | 959,947 | |
| | |
Medtronic, PLC | | | 4,575 | | | | 535,916 | |
| | |
Trane Technologies, PLC | | | 2,950 | | | | 428,222 | |
| | |
| | | | | | | 1,924,085 | |
| | |
Spain - 2.1% | | | | | | | | |
| | |
Iberdrola SA | | | 60,400 | | | | 863,316 | |
| | |
Switzerland - 9.9% | | | | | | | | |
| | |
Chubb, Ltd. | | | 1,750 | | | | 269,360 | |
| | |
Logitech International SA | | | 11,650 | | | | 1,132,264 | |
| | |
Lonza Group AG | | | 1,450 | | | | 931,616 | |
| | |
Nestle SA | | | 7,525 | | | | 886,204 | |
| | |
Partners Group Holding AG | | | 725 | | | | 851,689 | |
| | |
| | | | | | | 4,071,133 | |
| | |
United Kingdom - 9.2% | | | | | | | | |
| | |
AstraZeneca, PLC, ADR | | | 15,400 | | | | 769,846 | |
| | |
BAE Systems, PLC | | | 74,675 | | | | 499,153 | |
| | |
Diageo, PLC, ADR | | | 4,225 | | | | 670,972 | |
| | |
HomeServe, PLC | | | 33,725 | | | | 472,719 | |
| | |
London Stock Exchange Group, PLC | | | 6,875 | | | | 846,893 | |
| | |
RELX, PLC | | | 21,200 | | | | 518,757 | |
| | |
| | | | | | | 3,778,340 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
North America - 60.4% | | | | | | | | |
| | |
United States - 60.4% | | | | | | | | |
| | |
Abbott Laboratories | | | 8,300 | | | | 908,767 | |
| | |
AbbVie, Inc. | | | 3,975 | | | | 425,921 | |
| | |
Alphabet, Inc. - Class A * | | | 450 | | | | 788,688 | |
| | |
Apple, Inc. | | | 19,200 | | | | 2,547,648 | |
| | |
Applied Materials, Inc. | | | 8,175 | | | | 705,502 | |
| | |
Arthur J Gallagher & Co. | | | 3,775 | | | | 467,005 | |
| | |
Bank of America Corp. | | | 16,300 | | | | 494,053 | |
| | |
Broadcom, Inc. | | | 1,825 | | | | 799,076 | |
| | |
Constellation Brands, Inc. | | | 2,750 | | | | 602,388 | |
| | |
CVS Health Corp. | | | 7,600 | | | | 519,080 | |
| | |
Euronet Worldwide, Inc. * | | | 2,800 | | | | 405,776 | |
| | |
FedEx Corp. | | | 1,450 | | | | 376,449 | |
| | |
Goldman Sachs Group, Inc. | | | 1,400 | | | | 369,194 | |
| | |
Home Depot, Inc. | | | 2,550 | | | | 677,331 | |
| | |
Honeywell International, Inc. | | | 3,200 | | | | 680,640 | |
| | |
Johnson & Johnson | | | 6,925 | | | | 1,089,856 | |
| | |
JPMorgan Chase & Co. | | | 7,350 | | | | 933,964 | |
| | |
L3Harris Technologies, Inc. | | | 2,050 | | | | 387,491 | |
| | |
Lockheed Martin Corp. | | | 1,565 | | | | 555,544 | |
| | |
McDonald’s Corp. | | | 1,860 | | | | 399,119 | |
| | |
Microsoft Corp. | | | 12,100 | | | | 2,691,282 | |
| | |
Mondelez International, Inc. | | | 7,100 | | | | 415,137 | |
| | |
Otis Worldwide Corp. | | | 3,875 | | | | 261,756 | |
| | |
PepsiCo, Inc. | | | 5,775 | | | | 856,432 | |
| | |
Scotts Miracle-Gro Co. | | | 2,675 | | | | 532,700 | |
| | |
Sherwin-Williams Co. | | | 800 | | | | 587,928 | |
| | |
Starbucks Corp. | | | 7,975 | | | | 853,165 | |
| | |
T Rowe Price Group, Inc. | | | 4,800 | | | | 726,672 | |
| | |
Thermo Fisher Scientific, Inc. | | | 1,175 | | | | 547,291 | |
| | |
Union Pacific Corp. | | | 4,050 | | | | 843,291 | |
| | |
UnitedHealth Group, Inc. | | | 975 | | | | 341,913 | |
| | |
Verizon Communications, Inc. | | | 12,750 | | | | 749,062 | |
| | |
Waste Management, Inc. | | | 5,900 | | | | 695,787 | |
| | |
WEC Energy Group, Inc. | | | 6,150 | | | | 565,984 | |
| | |
| | | | | | | 24,801,892 | |
| | |
Total Common Stocks
(cost: $24,136,656) | | | | | | | 40,581,084 | |
See accompanying notes to financial statements.
| | |
| | |
| 18 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Short-Term Securities - 1.2% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 480,100 | | | | 480,100 | |
| | | | | | | | |
(cost: $480,100) | | | | | | | | |
| | |
Total Investments in Securities - 100.0%
(cost: $24,616,756) | | | | | | | 41,061,184 | |
| | |
Other Assets and Liabilities, net - 0.0% | | | | | | | 19,438 | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 41,080,622 | |
| | | | | | | | |
| * | Non-income producing security. |
ADR — American Depositary Receipt
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant observable inputs ($) | | Level 3 Significant
unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks | | | | | | | | | | | | |
Australia | | | 1,334,309 | | | — | | — | | | 1,334,309 | |
France | | | 358,396 | | | — | | — | | | 358,396 | |
Germany | | | 2,077,651 | | | — | | — | | | 2,077,651 | |
Ireland | | | 1,924,085 | | | — | | — | | | 1,924,085 | |
Japan | | | 913,539 | | | — | | — | | | 913,539 | |
Singapore | | | 458,423 | | | — | | — | | | 458,423 | |
Spain | | | 863,316 | | | — | | — | | | 863,316 | |
Switzerland | | | 4,071,133 | | | — | | — | | | 4,071,133 | |
United Kingdom | | | 3,778,340 | | | — | | — | | | 3,778,340 | |
United States | | | 24,801,892 | | | — | | ��� | | | 24,801,892 | |
Short-Term Securities | | | 480,100 | | | — | | — | | | 480,100 | |
| | | | |
| | | | |
Total: | | | 41,061,184 | | | — | | — | | | 41,061,184 | |
| | | | |
Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit Large Cap Growth Fund |
OBJECTIVE & STRATEGY
The objective of the Sit 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.
Fund Performance
The Sit Large Cap Growth Fund’s return was +22.92% during the 6-month period ending December 31, 2020, compared with a +26.12% return for the Russell 1000® Growth Index. The S&P 500® Index return for the period was +22.16%.
Factors that Influenced the Fund’s Performance
The Fund posted strong absolute returns over the period; however, it lagged the Russell 1000® Growth Index due to several factors. The largest detractor to relative performance over the 6-month period was the Fund’s stock selection and underweight position in the consumer durables sector, where the group outperformed the market due to many companies here being stay-at-home beneficiaries. Regarding stock selection in the sector, while our position in YETI Holdings performed well (+60%), not owning Tesla, which was up +227% during the last six months was a major contributor to underperformance. Stock selection in the electronic technology and technology services sectors also contributed, including individual securities Ciena, Intel, and Splunk, which underperformed during the period. Countering this was a combination of strong stock selection and an underweight position in the health technology sector. Positive contributors here included Intuitive Surgical and Thermo Fisher Scientific. The Fund also benefitted from its underweight position in the retail trade sector, where COVID-19-related declines in in-store shopping weighed on the performance of many companies. Finally, stock selection in the producer manufacturing sector benefited performance, where holdings such as Trane Technologies and Honeywell added to returns.
Outlook and Positioning
We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Accordingly, we remain constructive on U.S. equities over the intermediate-term and think participation in market gains will broaden further beyond the large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. The Fund continues to maintain a “barbell” strategy, focused on balancing early-cyclical companies that are likely
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell 1000® Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund’s primary index.
to be major beneficiaries of an uptick in economic activity (such as transports and financials) with stable, long-term earnings growers that should post above-average growth, regardless of market conditions. This includes sectors with large, secular growth tailwinds, such as companies in the technology sector, which will benefit from accelerating growth in 5G, cloud computing, e-commerce, and software. However, we have shifted our emphasis from software to hardware due to valuation concerns. With the increased attention on infrastructure investment and alternative energy expected under the Biden administration, the Fund is focused on owning companies that stand to benefit from improved sentiment and growth in these end markets. We also favor healthcare companies that should benefit from an aging U.S. population and new technology in high growth areas in the sector.
Roger J. Sit
Ronald D. Sit
Portfolio Managers
| | |
| | |
| 20 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
as of December 31, 2020
| | | | | | | | | | | | | | | |
| | | Sit Large
Cap Growth
Fund | | Russell
1000®
Growth
Index 1 | | Russell
1000®
Index 2 |
| | | |
Six Month | | | | 22.92 | % | | | | 26.12 | % | | | | 24.46% | |
One Year | | | | 33.94 | | | | | 38.49 | | | | | 20.96 | |
Five Year | | | | 18.12 | | | | | 21.00 | | | | | 15.60 | |
Ten Year | | | | 14.59 | | | | | 17.21 | | | | | 14.01 | |
Since Inception 3 (9/2/82) | | | | 10.94 | | | | | 12.25 | | | | | 12.15 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
2 Russell 1000® Index is an unmanaged index that measures the performance of approximately 1,000 of the largest U.S. companies by market capitalization.
3 On 6/6/93, the Fund’s investment objective changed to allow for a portfolio of 100% stocks. Prior to that time, the portfolio was required to contain no more than 80% stocks.
PORTFOLIO SUMMARY
| | |
Net Asset Value 12/31/20: | | $54.91 Per Share |
Net Asset Value 6/30/20: | | $47.07 Per Share |
Total Net Assets: | | $156.9 Million |
Weighted Average Market Cap: | | $660.1 Billion |
TOP 10 HOLDINGS
1. Apple, Inc.
2. Microsoft Corp.
3. Amazon.com, Inc.
4. Alphabet, Inc.
5. Facebook, Inc.
6. Visa, Inc.
7. PayPal Holdings, Inc.
8. UnitedHealth Group, Inc.
9. salesforce.com, Inc.
10. Broadcom, Inc.
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Large Cap Growth Fund
Investments are grouped by economic sectors.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 98.8% | | | | | | | | |
| | |
Communications - 1.6% | | | | | | | | |
| | |
American Tower Corp. | | | 8,100 | | | | 1,818,126 | |
| | |
Verizon Communications, Inc. | | | 12,025 | | | | 706,469 | |
| | |
| | | | | | | 2,524,595 | |
| | |
Consumer Durables - 1.6% | | | | | | | | |
| | |
YETI Holdings, Inc. * | | | 36,425 | | | | 2,494,020 | |
| | |
Consumer Non-Durables - 5.1% | | | | | | | | |
| | |
Constellation Brands, Inc. | | | 7,425 | | | | 1,626,446 | |
| | |
Estee Lauder Cos., Inc. - Class A | | | 9,800 | | | | 2,608,662 | |
| | |
Mondelez International, Inc. | | | 17,900 | | | | 1,046,613 | |
| | |
NIKE, Inc. | | | 5,125 | | | | 725,034 | |
| | |
PepsiCo, Inc. | | | 13,125 | | | | 1,946,438 | |
| | |
| | | | | | | 7,953,193 | |
| | |
Consumer Services - 5.3% | | | | | | | | |
| | |
McDonald’s Corp. | | | 6,650 | | | | 1,426,957 | |
| | |
Starbucks Corp. | | | 19,775 | | | | 2,115,530 | |
| | |
Visa, Inc. | | | 21,600 | | | | 4,724,568 | |
| | |
| | | | | | | 8,267,055 | |
| | |
Electronic Technology - 19.0% | | | | | | | | |
| | |
Apple, Inc. | | | 132,300 | | | | 17,554,887 | |
| | |
Applied Materials, Inc. | | | 38,900 | | | | 3,357,070 | |
| | |
Broadcom, Inc. | | | 7,800 | | | | 3,415,230 | |
| | |
Ciena Corp. * | | | 17,600 | | | | 930,160 | |
| | |
Keysight Technologies, Inc. * | | | 7,875 | | | | 1,040,209 | |
| | |
NVIDIA Corp. | | | 4,825 | | | | 2,519,615 | |
| | |
Qualcomm, Inc. | | | 6,325 | | | | 963,550 | |
| | |
| | | | | | | 29,780,721 | |
| | |
Finance - 3.5% | | | | | | | | |
| | |
Aon, PLC | | | 5,975 | | | | 1,262,338 | |
| | |
Chubb, Ltd. | | | 5,050 | | | | 777,296 | |
| | |
Goldman Sachs Group, Inc. | | | 5,150 | | | | 1,358,107 | |
| | |
JPMorgan Chase & Co. | | | 4,900 | | | | 622,643 | |
| | |
T Rowe Price Group, Inc. | | | 9,725 | | | | 1,472,268 | |
| | |
| | | | | | | 5,492,652 | |
| | |
Health Services - 2.8% | | | | | | | | |
| | |
HCA Healthcare, Inc. | | | 2,200 | | | | 361,812 | |
| | |
UnitedHealth Group, Inc. | | | 11,575 | | | | 4,059,121 | |
| | |
| | | | | | | 4,420,933 | |
| | |
Health Technology - 8.7% | | | | | | | | |
| | |
Abbott Laboratories | | | 15,500 | | | | 1,697,095 | |
| | |
AbbVie, Inc. | | | 10,750 | | | | 1,151,862 | |
| | |
Bristol-Myers Squibb Co. | | | 5,675 | | | | 352,020 | |
| | |
DexCom, Inc. * | | | 6,275 | | | | 2,319,993 | |
| | |
Intuitive Surgical, Inc. * | | | 2,800 | | | | 2,290,680 | |
| | |
Johnson & Johnson | | | 9,400 | | | | 1,479,372 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Medtronic, PLC | | | 15,825 | | | | 1,853,740 | |
| | |
Thermo Fisher Scientific, Inc. | | | 5,250 | | | | 2,445,345 | |
| | |
| | | | | | | 13,590,107 | |
| | |
Process Industries - 2.4% | | | | | | | | |
| | |
Ecolab, Inc. | | | 7,125 | | | | 1,541,565 | |
| | |
Sherwin-Williams Co. | | | 3,150 | | | | 2,314,966 | |
| | |
| | | | | | | 3,856,531 | |
| | |
Producer Manufacturing - 3.5% | | | | | | | | |
| | |
3M Co. | | | 2,225 | | | | 388,908 | |
| | |
Honeywell International, Inc. | | | 8,425 | | | | 1,791,998 | |
| | |
L3Harris Technologies, Inc. | | | 6,550 | | | | 1,238,081 | |
| | |
Northrop Grumman Corp. | | | 2,700 | | | | 822,744 | |
| | |
Trane Technologies, PLC | | | 8,900 | | | | 1,291,924 | |
| | |
| | | | | | | 5,533,655 | |
| | |
Retail Trade - 8.7% | | | | | | | | |
| | |
Amazon.com, Inc. * | | | 3,150 | | | | 10,259,330 | |
| | |
Home Depot, Inc. | | | 8,425 | | | | 2,237,848 | |
| | |
TJX Cos., Inc. | | | 18,075 | | | | 1,234,342 | |
| | |
| | | | | | | 13,731,520 | |
| | |
Technology Services - 33.7% | | | | | | | | |
| | |
Accenture, PLC | | | 10,200 | | | | 2,664,342 | |
| | |
Adobe, Inc. * | | | 6,725 | | | | 3,363,307 | |
| | |
Alphabet, Inc. - Class A * | | | 625 | | | | 1,095,400 | |
| | |
Alphabet, Inc. - Class C * | | | 4,215 | | | | 7,384,174 | |
| | |
Atlassian Corp., PLC * | | | 10,375 | | | | 2,426,401 | |
| | |
Autodesk, Inc. * | | | 6,900 | | | | 2,106,846 | |
| | |
DocuSign, Inc. * | | | 2,075 | | | | 461,273 | |
| | |
Dynatrace, Inc. * | | | 12,550 | | | | 543,038 | |
| | |
Facebook, Inc. * | | | 21,250 | | | | 5,804,650 | |
| | |
Intuit, Inc. | | | 6,100 | | | | 2,317,085 | |
| | |
Microsoft Corp. | | | 58,900 | | | | 13,100,538 | |
| | |
Paycom Software, Inc. * | | | 2,500 | | | | 1,130,625 | |
| | |
PayPal Holdings, Inc. * | | | 17,600 | | | | 4,121,920 | |
| | |
salesforce.com, Inc. * | | | 16,525 | | | | 3,677,308 | |
| | |
ServiceNow, Inc. * | | | 2,275 | | | | 1,252,228 | |
| | |
Splunk, Inc. * | | | 8,100 | | | | 1,376,109 | |
| | |
| | | | | | | 52,825,244 | |
| | |
Transportation - 2.3% | | | | | | | | |
| | |
FedEx Corp. | | | 5,650 | | | | 1,466,853 | |
| | |
Union Pacific Corp. | | | 10,150 | | | | 2,113,433 | |
| | |
| | | | | | | 3,580,286 | |
| | |
Utilities - 0.6% | | | | | | | | |
| | |
NextEra Energy, Inc. | | | 13,100 | | | | 1,010,665 | |
| | |
Total Common Stocks
(cost: $58,992,473) | | | | | | | 155,061,177 | |
See accompanying notes to financial statements.
| | |
| | |
| 22 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Short-Term Securities - 1.4% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%
| | | 2,182,250 | | | | 2,182,250 | |
(cost: $2,182,250) | | | | | | | | |
| | |
Total Investments in Securities - 100.2%
(cost: $61,174,723) | | | | | | | 157,243,427 | |
| | |
Other Assets and Liabilities, net - (0.2%) | | | | | | | (385,923 | ) |
| | |
Total Net Assets - 100.0% | | | | | | $ | 156,857,504 | |
| | | | | | | | |
| * | Non-income producing security. |
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant observable inputs ($) | | Level 3 Significant
unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks ** | | | 155,061,177 | | | — | | — | | | 155,061,177 | |
Short-Term Securities | | | 2,182,250 | | | — | | — | | | 2,182,250 | |
| | | | |
| | | | |
Total: | | | 157,243,427 | | | — | | — | | | 157,243,427 | |
| | | | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit ESG Growth Fund - Class I and Class S |
OBJECTIVE & STRATEGY
The objective of the Sit ESG Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in companies that the Adviser believes have strong environmental, social and corporate governance (ESG) practices at the time of purchase. The Fund invests in common stocks of U.S. and foreign companies, primarily of large to medium capitalizations (companies with market capitalization in excess of $2 billion).
Fund Performance
Sit ESG Growth Fund Class I shares provided a return of +18.75% during the 6-month period ending December 31, 2020, compared with the +23.00% return for the MSCI World Index.
Factors that Influenced the Fund’s Performance
Contributing favorably to performance during the 6-month period were the Fund’s holdings in the technology hardware & equipment (Logitech International and Apple), consumer durables (Nike), and utilities (Iberdrola) sectors. Conversely, underweighting the automobiles and semiconductors sectors, stock selection in the media & entertainment (RELX), health care & services (Baxter International, Terumo, and Boston Scientific), and semiconductors (Intel) sectors, and the Fund’s large cash position detracted from relative performance.
Geographically, the Fund’s exposure to the Euroland (adidas and Safran) region added value due to positive stock selection during the period. However, the Fund’s exposure to the North America (owning Intel, Microsoft, Home Depot, and ConocoPhillips, and not owning Tesla) and United Kingdom (AstraZeneca and RELX) regions negatively impacted relative performance.
Outlook and Positioning
We remain constructive on U.S. equities over the intermediate term and think participation in market gains will continue to broaden beyond large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. Near-term tailwinds for stocks include positive seasonality, elevated cash levels, global stimulus, vaccine deployment, easing financial conditions, and valuations that are attractive relative to bonds. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. With vaccines now being deployed, investors are looking past the current surge in new COVID-19 infections to an acceleration in economic growth by the second half of 2021. We continue to overweight the producer manufacturing and consumer services sectors, in order to take advantage of cyclical recovery as the pandemic hopefully abates. We also continue to overweight the technology sector but have shifted the emphasis to hard-
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the MSCI World Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index. This is the Fund’s primary index.
ware from software due to valuation concerns. Finally, we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments.
For non-U.S. equities, we continue to overweight the Euroland and United Kingdom regions, most notably Switzerland, the United Kingdom, Germany, and Spain. This positioning is more a function of our confidence in single stock performances than our expectation for regional outperformance. As a firm, we also remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak.
Roger J. Sit
Ronald D. Sit
Portfolio Managers
| | |
| | |
| 24 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
| | | | | | | | | | | | | | | |
as of December 31, 2020 | | | | | | |
| | | Sit ESG | | MSCI |
| | | Growth Fund | | World |
| | | |
| | | Class I | | Class S | | Index 1 |
Six Month | | | | 18.75 | % | | | | 18.56 | % | | | | 23.00% | |
One Year | | | | 15.90 | | | | | 15.62 | | | | | 15.90 | |
Since Inception (6/30/16) | | | | 12.68 | | | | | 12.40 | | | | | 13.45 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index.
PORTFOLIO SUMMARY
| | |
Class I: | | |
Net Asset Value 12/31/20: | | $16.35 Per Share |
Net Asset Value 6/30/20: | | $13.85 Per Share |
Total Net Assets: | | $4.3 Million |
Class S: | | |
Net Asset Value 12/31/20: | | $16.26 Per Share |
Net Asset Value 6/30/20: | | $13.78 Per Share |
Total Net Assets: | | $3.7 Million |
| |
Weighted Average Market Cap: | | $382.0 Billion |
TOP 10 HOLDINGS
1. Apple, Inc.
2. Microsoft Corp.
3. Iberdrola SA, ADR
4. Alphabet, Inc. - Class A
5. Allianz SE, ADR
6. Lonza Group AG
7. Home Depot, Inc.
8. Sony Corp., ADR
9. Visa, Inc.
10. Facebook, Inc.
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit ESG Growth Fund
Investments are grouped by geographic region.
| | | | | | | | |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
Common Stocks - 98.2% | | | | | | | | |
| | |
Asia - 10.2% | | | | | | | | |
| | |
Japan - 9.1% | | | | | | | | |
| | |
Astellas Pharma, Inc. | | | 6,400 | | | | 98,800 | |
| | |
Keyence Corp. | | | 200 | | | | 112,343 | |
| | |
Recruit Holdings Co., Ltd. | | | 3,100 | | | | 129,728 | |
| | |
Shiseido Co., Ltd. | | | 1,100 | | | | 76,022 | |
| | |
Sony Corp., ADR | | | 1,925 | | | | 194,618 | |
| | |
Terumo Corp. | | | 2,600 | | | | 108,578 | |
| | |
| | | | | | | 720,089 | |
| | |
Singapore - 1.1% | | | | | | | | |
| | |
Singapore Technologies Engineering, Ltd. | | | 31,200 | | | | 90,182 | |
| | |
Europe - 34.4% | | | | | | | | |
| | |
France - 1.9% | | | | | | | | |
| | |
Safran SA, ADR * | | | 2,750 | | | | 97,515 | |
| | |
Sanofi, ADR | | | 1,125 | | | | 54,664 | |
| | |
| | | | | | | 152,179 | |
| | |
Germany - 5.8% | | | | | | | | |
| | |
adidas AG, ADR * | | | 650 | | | | 118,944 | |
| | |
Allianz SE, ADR | | | 8,800 | | | | 216,920 | |
| | |
Muenchener Rueckversicherungs AG | | | 125 | | | | 37,077 | |
| | |
Siemens AG, ADR | | | 1,175 | | | | 84,353 | |
| | |
| | | | | | | 457,294 | |
| | |
Ireland - 5.8% | | | | | | | | |
| | |
Accenture, PLC | | | 575 | | | | 150,196 | |
| | |
CRH, PLC, ADR | | | 1,200 | | | | 51,096 | |
| | |
Medtronic, PLC | | | 900 | | | | 105,426 | |
| | |
Trane Technologies, PLC | | | 1,065 | | | | 154,595 | |
| | |
| | | | | | | 461,313 | |
| | |
Spain - 2.9% | | | | | | | | |
| | |
Iberdrola SA, ADR | | | 4,050 | | | | 232,875 | |
| | |
Sweden - 1.2% | | | | | | | | |
| | |
Telefonaktiebolaget LM Ericsson, ADR | | | 8,275 | | | | 98,886 | |
| | |
Switzerland - 8.7% | | | | | | | | |
| | |
Logitech International SA | | | 1,550 | | | | 150,644 | |
| | |
Lonza Group AG | | | 320 | | | | 205,598 | |
| | |
Nestle SA, ADR | | | 1,425 | | | | 167,865 | |
| | |
Novartis AG, ADR | | | 1,800 | | | | 169,974 | |
| | |
| | | | | | | 694,081 | |
| | |
United Kingdom - 8.1% | | | | | | | | |
| | |
AstraZeneca, PLC, ADR | | | 2,950 | | | | 147,470 | |
| | |
BAE Systems, PLC, ADR | | | 2,300 | | | | 62,445 | |
| | |
Coca-Cola European Partners, PLC | | | 2,100 | | | | 104,643 | |
| | |
Diageo, PLC, ADR | | | 785 | | | | 124,666 | |
| | |
HomeServe, PLC | | | 6,525 | | | | 91,460 | |
| | |
RELX, PLC, ADR | | | 4,700 | | | | 115,902 | |
| | |
| | | | | | | 646,586 | |
| | | | | | | | |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
North America - 53.6% | | | | | | | | |
| | |
United States - 53.6% | | | | | | | | |
| | |
3M Co. | | | 400 | | | | 69,916 | |
| | |
AbbVie, Inc. | | | 750 | | | | 80,362 | |
| | |
Adobe, Inc. * | | | 360 | | | | 180,043 | |
| | |
Alphabet, Inc. - Class A * | | | 125 | | | | 219,080 | |
| | |
Apple, Inc. | | | 3,600 | | | | 477,684 | |
| | |
Baxter International, Inc. | | | 850 | | | | 68,204 | |
| | |
CVS Health Corp. | | | 1,725 | | | | 117,818 | |
| | |
Ecolab, Inc. | | | 600 | | | | 129,816 | |
| | |
Facebook, Inc. * | | | 700 | | | | 191,212 | |
| | |
FedEx Corp. | | | 280 | | | | 72,694 | |
| | |
Goldman Sachs Group, Inc. | | | 600 | | | | 158,226 | |
| | |
Home Depot, Inc. | | | 745 | | | | 197,887 | |
| | |
Johnson & Johnson | | | 975 | | | | 153,446 | |
| | |
JPMorgan Chase & Co. | | | 1,075 | | | | 136,600 | |
| | |
Lockheed Martin Corp. | | | 185 | | | | 65,671 | |
| | |
Microsoft Corp. | | | 2,000 | | | | 444,840 | |
| | |
NIKE, Inc. | | | 925 | | | | 130,860 | |
| | |
NVIDIA Corp. | | | 175 | | | | 91,385 | |
| | |
PepsiCo, Inc. | | | 875 | | | | 129,763 | |
| | |
salesforce.com, Inc. * | | | 850 | | | | 189,150 | |
| | |
Starbucks Corp. | | | 1,600 | | | | 171,168 | |
| | |
T Rowe Price Group, Inc. | | | 1,175 | | | | 177,883 | |
| | |
TJX Cos., Inc. | | | 1,380 | | | | 94,240 | |
| | |
UnitedHealth Group, Inc. | | | 500 | | | | 175,340 | |
| | |
Verizon Communications, Inc. | | | 2,600 | | | | 152,750 | |
| | |
Visa, Inc. | | | 875 | | | | 191,389 | |
| | |
| | | | | | | 4,267,427 | |
Total Common Stocks
(cost: $4,905,779) | | | | | | | 7,820,912 | |
| | |
Short-Term Securities - 1.7% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 135,143 | | | | 135,143 | |
(cost: $135,143) | | | | | | | | |
| | |
Total Investments in Securities - 99.9%
(cost: $5,040,922) | | | | | | | 7,956,055 | |
| | |
Other Assets and Liabilities, net - 0.1% | | | | | | | 7,457 | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 7,963,512 | |
| | | | | | | | |
| * | Non-income producing security. |
| | ADR — American Depositary Receipt |
| | PLC — Public Limited Company |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments
See accompanying notes to financial statements.
| | |
| | |
| 26 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | Level 1 | | | Level 2 | | Level 3 | | | |
| | | Quoted | | | Other significant | | Significant | | | |
| | | Price ($) | | | observable inputs ($) | | unobservable inputs ($) | | Total ($) | |
Common Stocks | | | | | | | | | | | | |
France | | | 152,179 | | | — | | — | | | 152,179 | |
Germany | | | 457,294 | | | — | | — | | | 457,294 | |
Ireland | | | 461,313 | | | — | | — | | | 461,313 | |
Japan | | | 720,089 | | | — | | — | | | 720,089 | |
Singapore | | | 90,182 | | | — | | — | | | 90,182 | |
Spain | | | 232,875 | | | — | | — | | | 232,875 | |
Sweden | | | 98,886 | | | — | | — | | | 98,886 | |
Switzerland | | | 694,081 | | | — | | — | | | 694,081 | |
United Kingdom | | | 646,586 | | | — | | — | | | 646,586 | |
United States | | | 4,267,427 | | | — | | — | | | 4,267,427 | |
Short-Term Securities | | | 135,143 | | | — | | — | | | 135,143 | |
| | | | |
Total: | | | 7,956,055 | | | — | | — | | | 7,956,055 | |
Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
OBJECTIVE & 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 common stocks that, at the time of purchase, have market capitalizations that fall within the range of companies included in the Russell Midcap® Growth Index during the most recent 12-month period. The Russell Midcap® Growth Index ranged from approximately $510 million to $81 billion during the 12-month period ended December 31, 2020.
Fund Performance
The Sit Mid Cap Growth Fund’s return during the 6-month period ending December 31, 2020 was +28.05%, compared with a +30.18% return for the Russell Midcap® Growth Index. The Russell Midcap® Index increased +28.86% during the period.
Factors that Influenced the Fund’s Performance
The Fund underperformed its benchmark during the latest 6-month period, mostly due to negative stock selection in three sectors. First, stock selection in the technology services sector weighed on performance. The two main contributors to this were the Fund’s overweight position in Splunk and its lack of ownership in Pinterest. Second, in the commercial services sector, the Fund’s performance was hurt by its position in Booz Allen Hamilton, which, while up +13% during the period, lagged the strong market returns during this time horizon. Not owning Trade Desk from this sector also adversely impacted performance. Finally, owning Ciena and not owning Enphase Energy in the electronic technology sector weighed on performance. The Fund’s cash position also negatively impacted performance. On the positive side, large underweight positions and good stock selection in the retail trade and consumer non-durables sectors benefited returns. Key holdings included TJX, Ulta Beauty, and Coca-Cola European Partners. Good stock selection in the producer manufacturing (Trane Technologies, Ametek) and health services (Tenet Healthcare) sectors also added to returns. In addition, other strong performers in their sectors included iRhythm Technologies, Align Technology, HubSpot, and Advanced Micro Devices.
Outlook and Positioning
During the period, midcap stocks outperformed their large cap peers, as sentiment improved with the gradual reopening of the economy and investors felt comfortable taking on higher levels of risk. Unparalleled global stimulus, totaling almost $30 trillion thus far (or over 30% of world GDP), helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. Bolstered by ongoing federal stimulus, pent-up demand unleashed by a return to normalcy could kickstart a virtuous cycle of GDP growth. Global real GDP is poised to expand +5.0% or more in 2021, versus a drop of about -4.3% in 2020. However, the pace of new COVID-19 infections and vaccine availability represent sizable swing factors. The
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell Midcap® Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell Midcap® Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund’s primary index.
Fund maintains an overweight position in the electronic technology sector, as we believe emerging technologies – including 5G, investment in cloud computing, and artificial intelligence – will prove to be secular growth drivers and will benefit well-positioned firms. This shift looks to have been accelerated by the large work-at-home migration during the pandemic. Additionally, the Fund remains underweight the retail trade sector, as e-commerce and changing consumer buying patterns continue to pressure many established brick-and-mortar businesses in the space. Selective ownership in this sector is focused on companies that have demonstrated resilient business models with the ability to deliver above-average growth.
Roger J. Sit
Kent L. Johnson
Robert W. Sit
Portfolio Managers
| | |
| | |
| 28 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
| | | | | | | | | | | | | | | |
as of December 31, 2020 | | | | | | | | | | | | | | | |
| | | | | Russell | | |
| | | Sit | | Midcap® | | Russell |
| | | Mid Cap | | Growth | | Midcap® |
| | | Growth Fund | | Index 1 | | Index 2 |
Six Month | | | | 28.05 | % | | | | 30.18 | % | | | | 28.86% | |
One Year | | | | 33.08 | | | | | 35.59 | | | | | 17.10 | |
Five Year | | | | 14.55 | | | | | 18.66 | | | | | 13.40 | |
Ten Year | | | | 11.68 | | | | | 15.04 | | | | | 12.41 | |
Since Inception (9/2/82) | | | | 11.96 | | | | | n/a | | | | | n/a | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains and all fee waivers. Without the fee waivers total return and yield figures would have been lower. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 Russell Midcap® Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
2 Russell Midcap® Index is an unmanaged index that measures the performance of approximately 800 of the smallest companies in the Russell 1000® Index.
PORTFOLIO SUMMARY
| | |
Net Asset Value 12/31/20: | | $23.41 Per Share |
Net Asset Value 6/30/20: | | $19.05 Per Share |
Total Net Assets: | | $213.8 Million |
Weighted Average Market Cap: | | $31.2 Billion |
TOP 10 HOLDINGS
1. Atlassian Corp., PLC
2. Teladoc Health, Inc.
3. Thermo Fisher Scientific, Inc.
4. DexCom, Inc.
5. HubSpot, Inc.
6. PTC, Inc.
7. Autodesk, Inc.
8. Scotts Miracle-Gro Co.
9. Trex Co., Inc.
10. Booz Allen Hamilton Holding Corp.
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Mid Cap Growth Fund
Investments are grouped by economic sectors.
| | | | | | | | |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
Common Stocks - 97.5% | | | | | | | | |
| | |
Commercial Services - 2.5% | | | | | | | | |
| | |
ASGN, Inc. * | | | 13,525 | | | | 1,129,743 | |
| | |
Booz Allen Hamilton Holding Corp. | | | 48,200 | | | | 4,202,076 | |
| | |
| | | | | | | 5,331,819 | |
| | |
Consumer Durables - 1.8% | | | | | | | | |
| | |
YETI Holdings, Inc. * | | | 57,400 | | | | 3,930,178 | |
| | |
Consumer Non-Durables - 0.9% | | | | | | | | |
| | |
Coca-Cola European Partners, PLC | | | 40,700 | | | | 2,028,081 | |
| | |
Consumer Services - 4.1% | | | | | | | | |
| | |
Chegg, Inc. * | | | 43,600 | | | | 3,938,388 | |
| | |
Nexstar Media Group, Inc. | | | 20,650 | | | | 2,254,774 | |
| | |
Service Corp. International | | | 32,200 | | | | 1,581,020 | |
| | |
Vail Resorts, Inc. | | | 3,300 | | | | 920,568 | |
| | |
| | | | | | | 8,694,750 | |
| | |
Electronic Technology - 15.2% | | | | | | | | |
| | |
Advanced Micro Devices, Inc. * | | | 17,425 | | | | 1,598,047 | |
| | |
Applied Materials, Inc. | | | 35,475 | | | | 3,061,492 | |
| | |
Arista Networks, Inc. * | | | 13,625 | | | | 3,959,016 | |
| | |
Broadcom, Inc. | | | 9,100 | | | | 3,984,435 | |
| | |
Ciena Corp. * | | | 23,300 | | | | 1,231,405 | |
| | |
CMC Materials, Inc. | | | 10,825 | | | | 1,637,822 | |
| | |
Garmin, Ltd. | | | 26,500 | | | | 3,170,990 | |
| | |
Keysight Technologies, Inc. * | | | 23,150 | | | | 3,057,884 | |
| | |
Marvell Technology Group, Ltd. | | | 70,975 | | | | 3,374,152 | |
| | |
MKS Instruments, Inc. | | | 11,750 | | | | 1,767,788 | |
| | |
Monolithic Power Systems, Inc. | | | 5,400 | | | | 1,977,642 | |
| | |
Skyworks Solutions, Inc. | | | 23,900 | | | | 3,653,832 | |
| | |
| | | | | | | 32,474,505 | |
| | |
Finance - 7.4% | | | | | | | | |
| | |
American Financial Group, Inc. | | | 11,800 | | | | 1,033,916 | |
| | |
Ameriprise Financial, Inc. | | | 11,700 | | | | 2,273,661 | |
| | |
Arthur J Gallagher & Co. | | | 18,900 | | | | 2,338,119 | |
| | |
Carlyle Group, Inc. | | | 96,800 | | | | 3,043,392 | |
| | |
First Republic Bank | | | 16,550 | | | | 2,431,692 | |
| | |
Intercontinental Exchange, Inc. | | | 25,300 | | | | 2,916,837 | |
| | |
T Rowe Price Group, Inc. | | | 11,800 | | | | 1,786,402 | |
| | |
| | | | | | | 15,824,019 | |
| | |
Health Services - 4.7% | | | | | | | | |
| | |
Encompass Health Corp. | | | 34,050 | | | | 2,815,594 | |
| | |
Teladoc Health, Inc. * | | | 25,450 | | | | 5,088,982 | |
| | |
Tenet Healthcare Corp. * | | | 50,950 | | | | 2,034,433 | |
| | |
| | | | | | | 9,939,009 | |
| | |
Health Technology - 15.7% | | | | | | | | |
| | |
Align Technology, Inc. * | | | 7,500 | | | | 4,007,850 | |
| | |
BioMarin Pharmaceutical, Inc. * | | | 23,500 | | | | 2,060,715 | |
| | |
Cooper Cos, Inc. | | | 4,250 | | | | 1,544,110 | |
| | |
DexCom, Inc. * | | | 13,050 | | | | 4,824,846 | |
| | | | | | | | |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
Exact Sciences Corp. * | | | 29,650 | | | | 3,928,328 | |
| | |
ICU Medical, Inc. * | | | 4,575 | | | | 981,292 | |
| | |
Insulet Corp. * | | | 11,700 | | | | 2,990,871 | |
| | |
iRhythm Technologies, Inc. * | | | 14,700 | | | | 3,486,987 | |
| | |
Jazz Pharmaceuticals, PLC * | | | 5,700 | | | | 940,785 | |
| | |
Sarepta Therapeutics, Inc. * | | | 22,600 | | | | 3,853,074 | |
| | |
Thermo Fisher Scientific, Inc. | | | 10,550 | | | | 4,913,979 | |
| | |
| | | | | | | 33,532,837 | |
| | |
Industrial Services - 3.3% | | | | | | | | |
| | |
Jacobs Engineering Group, Inc. | | | 27,800 | | | | 3,029,088 | |
Waste Connections, Inc. | | | 38,950 | | | | 3,995,102 | |
| | |
| | | | | | | 7,024,190 | |
| | |
Non-Energy Minerals - 2.0% | | | | | | | | |
| | |
Trex Co., Inc. * | | | 50,200 | | | | 4,202,744 | |
| | |
Process Industries - 3.3% | | | | | | | | |
| | |
Ecolab, Inc. | | | 13,000 | | | | 2,812,680 | |
| | |
Scotts Miracle-Gro Co. | | | 21,800 | | | | 4,341,252 | |
| | |
| | | | | | | 7,153,932 | |
| | |
Producer Manufacturing - 7.6% | | | | | | | | |
| | |
AMETEK, Inc. | | | 24,000 | | | | 2,902,560 | |
| | |
Carlisle Cos., Inc. | | | 17,000 | | | | 2,655,060 | |
| | |
Dover Corp. | | | 27,000 | | | | 3,408,750 | |
| | |
Hubbell, Inc. | | | 11,000 | | | | 1,724,690 | |
| | |
Rockwell Automation, Inc. | | | 6,300 | | | | 1,580,103 | |
| | |
Trane Technologies, PLC | | | 27,050 | | | | 3,926,578 | |
| | |
| | | | | | | 16,197,741 | |
| | |
Retail Trade - 3.1% | | | | | | | | |
| | |
TJX Cos., Inc. | | | 55,175 | | | | 3,767,901 | |
| | |
Ulta Beauty, Inc. * | | | 9,700 | | | | 2,785,452 | |
| | |
| | | | | | | 6,553,353 | |
| | |
Technology Services - 23.9% | | | | | | | | |
| | |
Altair Engineering, Inc. * | | | 24,800 | | | | 1,442,864 | |
| | |
ANSYS, Inc. * | | | 10,750 | | | | 3,910,850 | |
| | |
Aspen Technology, Inc. * | | | 19,900 | | | | 2,591,975 | |
| | |
Atlassian Corp., PLC * | | | 22,900 | | | | 5,355,623 | |
| | |
Autodesk, Inc. * | | | 14,800 | | | | 4,519,032 | |
| | |
Booking Holdings, Inc. * | | | 450 | | | | 1,002,271 | |
| | |
DocuSign, Inc. * | | | 11,050 | | | | 2,456,415 | |
| | |
Dynatrace, Inc. * | | | 65,375 | | | | 2,828,776 | |
| | |
Euronet Worldwide, Inc. * | | | 26,275 | | | | 3,807,773 | |
| | |
GoDaddy, Inc. * | | | 27,075 | | | | 2,245,871 | |
| | |
HubSpot, Inc. * | | | 11,950 | | | | 4,737,458 | |
| | |
Paycom Software, Inc. * | | | 6,100 | | | | 2,758,725 | |
| | |
PTC, Inc. * | | | 39,600 | | | | 4,736,556 | |
| | |
Qualys, Inc. * | | | 7,000 | | | | 853,090 | |
See accompanying notes to financial statements.
| | |
| | |
| 30 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| | | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
RingCentral, Inc. * | | | 4,825 | | | | 1,828,530 | |
| | |
Science Applications International Corp. | | | 25,100 | | | | 2,375,464 | |
| | |
Splunk, Inc. * | | | 20,900 | | | | 3,550,701 | |
| | |
| | | | | | | 51,001,974 | |
| | |
Transportation - 1.2% | | | | | | | | |
| | |
Alaska Air Group, Inc. | | | 17,300 | | | | 899,600 | |
| | |
Knight-Swift Transportation Holdings, Inc. | | | 41,600 | | | | 1,739,712 | |
| | |
| | | | | | | 2,639,312 | |
| | |
Utilities - 0.8% | | | | | | | | |
| | |
WEC Energy Group, Inc. | | | 18,900 | | | | 1,739,367 | |
| | |
Total Common Stocks
(cost: $92,924,431) | | | | | | | 208,267,811 | |
| | | | | | | | |
| | | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| | |
Short-Term Securities - 2.7% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%
| | | 5,813,482 | | | | 5,813,482 | |
| | | | | | | | |
(cost: $5,813,482) | | | | | | | | |
| | |
Total Investments in Securities - 100.2%
(cost: $98,737,913) | | | | | | | 214,081,293 | |
| | |
Other Assets and Liabilities, net - (0.2%) | | | | | | | (326,683 | ) |
| | | | | | | | |
| | |
Total Net Assets - 100.0% | | | | | | | $213,754,610 | |
| | | | | | | | |
| * | Non-income producing security. |
| | PLC — Public Limited Company |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | Level 1 | | | Level 2 | | Level 3 | | | |
| | | Quoted | | | Other significant | | Significant | | | |
| | | Price ($) | | | observable inputs ($) | | unobservable inputs ($) | | Total ($) | |
Common Stocks ** | | | 208,267,811 | | | — | | — | | | 208,267,811 | |
Short-Term Securities | | | 5,813,482 | | | — | | — | | | 5,813,482 | |
| | | | |
Total: | | | 214,081,293 | | | — | | — | | | 214,081,293 | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit Small Cap Dividend Growth Fund Class I and Class S |
OBJECTIVE & STRATEGY
The objective of the Sit Small Cap Dividend Growth Fund is to provide current income that exceeds the Fund’s benchmark index and that grows over a period of years. Secondarily the Fund seeks long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in small cap dividend-paying common stocks that have market 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 ($13.4 billion as of December 31, 2020). The Fund may invest the balance of its assets in preferred stocks, convertible bonds, U.S. Treasury securities (including Treasury bills, notes and bonds), closed-end investment companies, and master limited partnerships.
Fund Performance
The Sit Small Cap Dividend Growth Fund Class I posted a +28.48% return over the last past 6-months ending December 31, 2020, compared with the +37.85% return for the Russell 2000® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 1.78% as of 12/31/20, compared with a yield of 1.25% for the Russell 2000® Index.
Factors that Influenced the Fund’s Performance
Contributing to the Fund’s underperformance during the 6-month period were its stocks in the consumer services, producer manufacturing, and retail trade sectors. Many of the best performing stocks in the producer manufacturing sector were non-dividend-paying, alternative energy companies with zero or minimal prospects of paying a dividend in the future. Consequently, our producer manufacturing sector performance was constrained by the Russell 2000® Index’s lack of the type of companies that the Fund seeks to own (i.e., cash flow-generating enterprises that pay dividends), compared to the more speculative constituents in the benchmark. Within the consumer services and retail trade sectors, holdings in Strategic Education, Chegg, and PetMed Express also detracted from performance. Significant underperformance of dividend-paying stocks relative to non-dividend paying stocks also broadly, negatively affected performance over the period (i.e., Dividend-paying stocks in the Russell 2000® Index were up +27% during the period versus +46% for non-dividend payers). Stock selection and a large underweight position in health technology helped to offset some of this underperformance. Key holdings here were iRhythm Technologies and LeMaitre Vascular. Underweighting the lagging energy minerals sector and stock selection in the consumer non-durables sector (Sensient Technologies) also added to performance.
Outlook and Positioning
Small capitalization stocks outperformed their large capitalization peers, with growth significantly outperforming value within the small cap universe, as more speculative, unprofitable companies led the market. Overall, we believe equity returns in the near to intermediate term will be largely driven by earnings growth and that dividend-paying companies will remain attractive in a market shift to fundamentals as the market broadens out. Accordingly, the Fund is overweighted in those sectors where we believe earnings growth will exceed the market average. The Fund’s overweight positions in the
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell 2000® Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell 2000® Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization. It is not possible to invest directly in an index. This is the Fund’s primary index.
electronic technology, commercial services, and producer manufacturing sectors should be helped by easy year-ago comparisons and an expected rebound in economic growth in 2021, as the U.S. economy gradually reopens and vaccination rates increase. Select technology companies should also benefit, as technology capital spending continues to grow, driven by investments in cloud computing and other emerging technologies. Finally, we believe defensive areas of the market with compelling relative valuations, including REITs and select utilities, provide a good hedge to market risks. These risks include historically elevated valuations; the potential of supply chain bottlenecks, logistical snags, public resistance, and new strains that could disturb the COVID-19 inoculation timetable; and continued COVID-19-related economic disruptions. However, given valuation declines during through 2020, these areas look attractive due to both their valuation and their yield advantage to the market and prevailing Treasury yields.
| | |
Roger J. Sit | | Michael T. Manns |
Kent L. Johnson | | Robert W. Sit |
Portfolio Managers | | |
| | |
| | |
| 32 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
| | | | | | | | | | | | | | | |
| as of December 31, 2020 | | | | | | |
| | | Sit Small Cap | | |
| | | Dividend | | Russell |
| | | Growth Fund | | 2000® |
| | | Class I | | Class S | | Index 1 |
Six Month | | | | 28.48 | % | | | | 28.36 | % | | | | 37.85% | |
One Year | | | | 16.20 | | | | | 16.00 | | | | | 19.96 | |
Five Year | | | | 10.93 | | | | | 10.65 | | | | | 13.26 | |
Since Inception (3/31/15) | | | | 8.15 | | | | | 7.88 | | | | | 9.74 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 Russell 2000® Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization. It is not possible to directly invest in an index.
PORTFOLIO SUMMARY
| | | | | | |
Class I: | | | | | | |
Net Asset Value 12/31/20: | | $14.52 | | | Per Share | |
Net Asset Value 6/30/20: | | $11.39 | | | Per Share | |
Total Net Assets: | | $14.8 | | | Million | |
Class S: | | | | | | |
Net Asset Value 12/31/20: | | $14.52 | | | Per Share | |
Net Asset Value 6/30/20: | | $11.38 | | | Per Share | |
Total Net Assets: | | $4.7 | | | Million | |
| | |
Weighted Average Market Cap: | | $5.8 | | | Billion | |
TOP 10 HOLDINGS
1. Monolithic Power Systems, Inc.
2. MKS Instruments, Inc.
3. Chegg, Inc.
4. Scotts Miracle-Gro Co.
5. Globant SA
6. Encompass Health Corp.
7. KBR, Inc.
8. American Financial Group, Inc.
9. CMC Materials, Inc.
10. Axis Capital Holdings, Ltd.
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Small Cap Dividend Growth Fund
Investments are grouped by economic sectors.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 97.7% | | | | | | | | |
| | |
Commercial Services - 4.6% | | | | | | | | |
| | |
Booz Allen Hamilton Holding Corp. | | | 3,200 | | | | 278,976 | |
| | |
Brink’s Co. | | | 3,400 | | | | 244,800 | |
| | |
Colliers International Group, Inc. | | | 2,350 | | | | 209,456 | |
| | |
FTI Consulting, Inc. * | | | 1,425 | | | | 159,201 | |
| | |
| | | | | | | 892,433 | |
| | |
Communications - 0.9% | | | | | | | | |
| | |
Shenandoah Telecommunications Co. | | | 3,800 | | | | 164,350 | |
| | |
Consumer Durables - 6.5% | | | | | | | | |
| | |
Acushnet Holdings Corp. | | | 3,400 | | | | 137,836 | |
| | |
BRP, Inc. | | | 3,675 | | | | 242,476 | |
| | |
Helen of Troy, Ltd. * | | | 1,075 | | | | 238,854 | |
| | |
MDC Holdings, Inc. | | | 3,750 | | | | 182,250 | |
| | |
National Presto Industries, Inc. | | | 750 | | | | 66,322 | |
| | |
Thor Industries, Inc. | | | 2,300 | | | | 213,877 | |
| | |
YETI Holdings, Inc. * | | | 2,700 | | | | 184,869 | |
| | |
| | | | | | | 1,266,484 | |
| | |
Consumer Non-Durables - 1.1% | | | | | | | | |
| | |
Sensient Technologies Corp. | | | 3,000 | | | | 221,310 | |
| | |
Consumer Services - 6.9% | | | | | | | | |
| | |
Chegg, Inc. * | | | 4,900 | | | | 442,617 | |
| | |
Nexstar Media Group, Inc. | | | 2,850 | | | | 311,192 | |
| | |
Service Corp. International | | | 3,800 | | | | 186,580 | |
| | |
Strategic Education, Inc. | | | 2,290 | | | | 218,306 | |
| | |
Vail Resorts, Inc. | | | 690 | | | | 192,483 | |
| | |
| | | | | | | 1,351,178 | |
| | |
Electronic Technology - 10.6% | | | | | | | | |
| | |
CMC Materials, Inc. | | | 2,100 | | | | 317,730 | |
| | |
II-VI, Inc. * | | | 1,275 | | | | 96,849 | |
| | |
MKS Instruments, Inc. | | | 4,300 | | | | 646,935 | |
| | |
Monolithic Power Systems, Inc. | | | 1,975 | | | | 723,304 | |
| | |
Power Integrations, Inc. | | | 3,400 | | | | 278,324 | |
| | |
| | | | | | | 2,063,142 | |
| | |
Finance - 24.6% | | | | | | | | |
| | |
American Financial Group, Inc. | | | 3,675 | | | | 322,003 | |
| | |
Artisan Partners Asset Management, Inc. | | | 6,300 | | | | 317,142 | |
| | |
Axis Capital Holdings, Ltd. | | | 6,300 | | | | 317,457 | |
| | |
Carlyle Group, Inc. | | | 8,075 | | | | 253,878 | |
| | |
CNO Financial Group, Inc. | | | 14,000 | | | | 311,220 | |
| | |
CubeSmart | | | 5,250 | | | | 176,453 | |
| | |
Donegal Group, Inc. | | | 9,500 | | | | 133,665 | |
| | |
Essential Properties Realty Trust, Inc. | | | 7,700 | | | | 163,240 | |
| | |
Evercore Partners, Inc. | | | 2,800 | | | | 306,992 | |
| | |
Hanover Insurance Group, Inc. | | | 1,275 | | | | 149,073 | |
| | |
HCI Group, Inc. | | | 3,600 | | | | 188,280 | |
| | |
Hercules Capital, Inc. | | | 13,100 | | | | 188,902 | |
| | |
Old National Bancorp | | | 9,550 | | | | 158,148 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
People’s United Financial, Inc. | | | 16,325 | | | | 211,082 | |
| | |
Physicians Realty Trust | | | 12,550 | | | | 223,390 | |
| | |
Piper Sandler Cos | | | 2,875 | | | | 290,088 | |
| | |
PROG Holdings, Inc. | | | 3,550 | | | | 191,238 | |
| | |
QTS Realty Trust, Inc. | | | 4,350 | | | | 269,178 | |
| | |
Stifel Financial Corp. | | | 6,000 | | | | 302,760 | |
| | |
STORE Capital Corp. | | | 6,225 | | | | 211,526 | |
| | |
Third Point Reinsurance, Ltd. * | | | 10,150 | | | | 96,628 | |
| | |
| | | | | | | 4,782,343 | |
| | |
Health Services - 3.1% | | | | | | | | |
| | |
Encompass Health Corp. | | | 4,200 | | | | 347,298 | |
| | |
Tenet Healthcare Corp. * | | | 6,400 | | | | 255,552 | |
| | |
| | | | | | | 602,850 | |
| | |
Health Technology - 6.4% | | | | | | | | |
| | |
AtriCure, Inc. * | | | 5,200 | | | | 289,484 | |
| | |
Atrion Corp. | | | 160 | | | | 102,758 | |
| | |
Bio-Techne Corp. | | | 325 | | | | 103,204 | |
| | |
ICU Medical, Inc. * | | | 425 | | | | 91,158 | |
| | |
iRhythm Technologies, Inc. * | | | 1,200 | | | | 284,652 | |
| | |
LeMaitre Vascular, Inc. | | | 4,175 | | | | 169,088 | |
| | |
STERIS, PLC | | | 1,100 | | | | 208,494 | |
| | |
| | | | | | | 1,248,838 | |
| | |
Industrial Services - 2.8% | | | | | | | | |
| | |
EMCOR Group, Inc. | | | 2,400 | | | | 219,504 | |
| | |
KBR, Inc. | | | 10,775 | | | | 333,271 | |
| | |
| | | | | | | 552,775 | |
| | |
Non-Energy Minerals - 2.6% | | | | | | | | |
| | |
AZEK Co., Inc. * | | | 5,700 | | | | 219,165 | |
| | |
Commercial Metals Co. | | | 3,950 | | | | 81,133 | |
| | |
Eagle Materials, Inc. | | | 575 | | | | 58,276 | |
| | |
PotlatchDeltic Corp. | | | 2,810 | | | | 140,556 | |
| | |
| | | | | | | 499,130 | |
| | |
Process Industries - 5.2% | | | | | | | | |
| | |
Huntsman Corp. | | | 4,650 | | | | 116,901 | |
| | |
Neenah, Inc. | | | 2,525 | | | | 139,683 | |
| | |
Olin Corp. | | | 5,050 | | | | 124,028 | |
| | |
Scotts Miracle-Gro Co. | | | 2,100 | | | | 418,194 | |
| | |
Silgan Holdings, Inc. | | | 5,800 | | | | 215,064 | |
| | |
| | | | | | | 1,013,870 | |
| | |
Producer Manufacturing - 11.0% | | | | | | | | |
| | |
AGCO Corp. | | | 925 | | | | 95,358 | |
| | |
Applied Industrial Technologies, Inc. | | | 2,475 | | | | 193,025 | |
| | |
AZZ, Inc. | | | 1,225 | | | | 58,114 | |
| | |
Carlisle Cos, Inc. | | | 1,650 | | | | 257,697 | |
| | |
Crane Co. | | | 2,675 | | | | 207,740 | |
| | |
H&E Equipment Services, Inc. | | | 7,500 | | | | 223,575 | |
| | |
Hubbell, Inc. | | | 1,525 | | | | 239,105 | |
See accompanying notes to financial statements.
| | |
| | |
| 34 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Lincoln Electric Holdings, Inc. | | | 1,350 | | | | 156,938 | |
| | |
MSA Safety, Inc. | | | 1,700 | | | | 253,963 | |
| | |
Oshkosh Corp. | | | 1,175 | | | | 101,132 | |
| | |
Rexnord Corp. | | | 5,250 | | | | 207,322 | |
| | |
Watsco, Inc. | | | 685 | | | | 155,187 | |
| | |
| | | | | | | 2,149,156 | |
| | |
Retail Trade - 1.9% | | | | | | | | |
| | |
Casey’s General Stores, Inc. | | | 1,025 | | | | 183,086 | |
| | |
PetMed Express, Inc. | | | 5,625 | | | | 180,338 | |
| | |
| | | | | | | 363,424 | |
| | |
Technology Services - 4.1% | | | | | | | | |
| | |
Globant SA * | | | 1,625 | | | | 353,616 | |
| | |
ManTech International Corp. | | | 1,800 | | | | 160,092 | |
| | |
Science Applications International Corp. | | | 3,075 | | | | 291,018 | |
| | |
| | | | | | | 804,726 | |
| | |
Transportation - 3.2% | | | | | | | | |
| | |
Knight-Swift Transportation Holdings, Inc. | | | 5,275 | | | | 220,600 | |
| | |
Marten Transport, Ltd. | | | 8,450 | | | | 145,594 | |
| | |
TFI International, Inc. | | | 5,000 | | | | 257,900 | |
| | |
| | | | | | | 624,094 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Utilities - 2.2% | | | | | | | | |
| | |
Black Hills Corp. | | | 4,000 | | | | 245,800 | |
| | |
Spire, Inc. | | | 2,750 | | | | 176,110 | |
| | |
| | | | | | | 421,910 | |
| | |
Total Common Stocks
(cost: $13,252,842) | | | | | | | 19,022,013 | |
| | |
Short-Term Securities - 2.5% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 482,965 | | | | 482,965 | |
| | | | | | | | |
(cost: $482,965) | | | | | | | | |
| | |
Total Investments in Securities - 100.2%
(cost: $13,735,807) | | | | | | | 19,504,978 | |
| | |
Other Assets and Liabilities, net - (0.2%) | | | | | | | (35,875 | ) |
| | |
Total Net Assets - 100.0% | | | | | | $ | 19,469,103 | |
| | | | | | | | |
| * | Non-income producing security. |
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant
observable inputs ($) | | Level 3 Significant unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks ** | | | 19,022,013 | | | — | | — | | | 19,022,013 | |
Short-Term Securities | | | 482,965 | | | — | | — | | | 482,965 | |
| | | | |
| | | | |
Total: | | | 19,504,978 | | | — | | — | | | 19,504,978 | |
| | | | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit Small Cap Growth Fund |
OBJECTIVE & 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 market 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 ($13.4 billion as of December 31, 2020).
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.
Fund Performance
The Sit Small Cap Growth Fund return was +33.13% over the 6-month period ending December 31, 2020. This compares to the return of +38.88% for the Russell 2000® Growth Index and a +37.85% increase for the Russell 2000® Index.
Factors that Influenced the Fund’s Performance
The majority of the Fund’s underperformance during the period can be explained by its stock selection in the producer manufacturing, consumer services, and electronic technology sectors. Within the producer manufacturing sector, performance was negatively affected by not owning unprofitable renewable energy companies, such as Plug Power and Sunrun, which outperformed more traditional companies. In consumer services, ownership of Strategic Education weighed on performance, as new student enrollment was disrupted by COVID- 19. Owning Ciena and not owning alternative energy company SunPower resulted in negative stock selection within the electronic technology sector. The main positive contributor during the period was the Fund’s stock selection and large underweight position in the health technology sector. Here, the Fund owned companies in the medical device space, such as iRhythm Technologies and Align Technology, that were major beneficiaries from a large rebound in medical/dental procedures caused by COVID-19 shutdowns in the first part of 2020, and companies with unique technology in high growth fields, such as Pacific Biosciences. Stock selection in the process industries and finance sectors also contributed to positive performance.
Outlook and Positioning
Sentiment has turned noticeably positive for smaller capitalization stocks, which have trailed the overall market for several years. Now, with the U.S. economy poised to gain sustainable traction, several factors are aligned for solid small cap stock performance. U.S. small cap stocks are attractively valued and more direct beneficiaries of economic improvement. In addition, investors turn to small capitalization stocks when comfortable taking on more risk. Regarding sector positioning, we expect pro-growth/cyclical areas to continue to outperform the market, as economic growth rebounds in 2021. Transportation, select producer manufacturing, and technology stocks should benefit especially, based on potential for upward earnings inflections. Also, a focus on infrastructure investment within the Biden administration should help sentiment and growth for producer manufacturing stocks. Within technology, we expect investor enthusiasm
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell 2000® Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell 2000® Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund’s primary index.
for a 5G wireless spending cycle to boost select semiconductor companies. Additionally, despite the shock from the COVID-19 outbreak, the U.S. consumer remains in good shape, with sentiment improving from low levels and high savings rates. This should release some pent-up demand. Accordingly, the Fund retains significant overweight positions in the consumer durables and consumer services sectors. We are evaluating renewable energy companies, which should benefit from the new administration’s policies and increasingly effective technology but have astronomically high valuations relative to the broader market. The Fund continues to significantly underweight the health technology sector, as many of the biotech companies in the benchmark Russell 2000® Growth Index depend on debt or equity offerings to fund operations and rely on binary events, such as clinical trials and acquisition potential, to drive stock performance. The Fund maintains a preference for investing in proven, cash-generating companies.
Roger J. Sit Kent L. Johnson
Robert W. Sit
Portfolio Managers
| | |
| | |
| 36 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
as of December 31, 2020
| | | | | | | | | | | | | | | |
| | | Sit | | | | |
| | | Small Cap | | Russell | | Russell |
| | | Growth | | 2000® | | 2000® |
| | | Fund | | Growth Index 1 | | Index 2 |
Six Month | | | | 33.13% | | | | | 38.88% | | | | | 37.85% | |
One Year | | | | 35.93 | | | | | 34.63 | | | | | 19.96 | |
Five Year | | | | 13.44 | | | | | 16.36 | | | | | 13.26 | |
Ten Year | | | | 11.13 | | | | | 13.48 | | | | | 11.20 | |
Since Inception (7/1/94) | | | | 10.88 | | | | | 9.20 | | | | | 9.73 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 Russell 2000® Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
2 Russell 2000® Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000® Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization.
PORTFOLIO SUMMARY
| | |
Net Asset Value 12/31/20: | | $73.07 Per Share |
Net Asset Value 6/30/20: | | $56.81 Per Share |
Total Net Assets: | | $132.2 Million |
Weighted Average Market Cap: | | $10.6 Billion |
TOP 10 HOLDINGS
1. Monolithic Power Systems, Inc.
2. Chegg, Inc.
3. Pacific Biosciences of California, Inc.
4. Paycom Software, Inc.
5. YETI Holdings, Inc.
6. HubSpot, Inc.
7. iRhythm Technologies, Inc.
8. Trex Co., Inc.
9. Teladoc Health, Inc.
10. Scotts Miracle-Gro Co.
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Small Cap Growth Fund
Investments are grouped by economic sectors.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 97.9% | | | | | | | | |
| | |
Commercial Services - 4.4% | | | | | | | | |
| | |
ASGN, Inc. * | | | 22,375 | | | | 1,868,984 | |
| | |
Booz Allen Hamilton Holding Corp. | | | 20,000 | | | | 1,743,600 | |
| | |
Colliers International Group, Inc. | | | 12,700 | | | | 1,131,951 | |
| | |
FTI Consulting, Inc. * | | | 8,950 | | | | 999,894 | |
| | |
| | | | | | | 5,744,429 | |
| | |
Communications - 0.7% | | | | | | | | |
| | |
Shenandoah Telecommunications Co. | | | 22,700 | | | | 981,775 | |
| | |
Consumer Durables - 6.8% | | | | | | | | |
| | |
Acushnet Holdings Corp. | | | 22,500 | | | | 912,150 | |
| | |
BRP, Inc. | | | 19,150 | | | | 1,263,517 | |
| | |
Helen of Troy, Ltd. * | | | 7,050 | | | | 1,566,440 | |
| | |
Take-Two Interactive Software, Inc. * | | | 6,350 | | | | 1,319,466 | |
| | |
Thor Industries, Inc. | | | 11,200 | | | | 1,041,488 | |
| | |
YETI Holdings, Inc. * | | | 42,350 | | | | 2,899,704 | |
| | |
| | | | | | | 9,002,765 | |
| | |
Consumer Services - 6.4% | | | | | | | | |
| | |
Chegg, Inc. * | | | 37,500 | | | | 3,387,375 | |
| | |
Nexstar Media Group, Inc. | | | 15,225 | | | | 1,662,418 | |
| | |
Service Corp. International | | | 18,700 | | | | 918,170 | |
| | |
Strategic Education, Inc. | | | 9,100 | | | | 867,503 | |
| | |
Vail Resorts, Inc. | | | 5,600 | | | | 1,562,176 | |
| | |
| | | | | | | 8,397,642 | |
| | |
Electronic Technology - 9.6% | | | | | | | | |
| | |
Arista Networks, Inc. * | | | 6,450 | | | | 1,874,176 | |
| | |
Ciena Corp. * | | | 14,150 | | | | 747,828 | |
| | |
CMC Materials, Inc. | | | 8,825 | | | | 1,335,222 | |
| | |
II-VI, Inc. * | | | 8,750 | | | | 664,650 | |
| | |
MKS Instruments, Inc. | | | 15,750 | | | | 2,369,588 | |
| | |
Monolithic Power Systems, Inc. | | | 10,200 | | | | 3,735,546 | |
| | |
Skyworks Solutions, Inc. | | | 13,200 | | | | 2,018,016 | |
| | |
| | | | | | | 12,745,026 | |
| | |
Finance - 6.5% | | | | | | | | |
| | |
Artisan Partners Asset Management, Inc. | | | 31,825 | | | | 1,602,070 | |
| | |
Axis Capital Holdings, Ltd. | | | 22,975 | | | | 1,157,710 | |
| | |
Essential Properties Realty Trust, Inc. | | | 9,700 | | | | 205,640 | |
| | |
First Republic Bank | | | 6,400 | | | | 940,352 | |
| | |
Physicians Realty Trust | | | 61,600 | | | | 1,096,480 | |
| | |
PROG Holdings, Inc. | | | 23,400 | | | | 1,260,558 | |
| | |
QTS Realty Trust, Inc. | | | 13,300 | | | | 823,004 | |
| | |
SVB Financial Group * | | | 3,775 | | | | 1,464,058 | |
| | |
| | | | | | | 8,549,872 | |
| | |
Health Services - 4.4% | | | | | | | | |
| | |
Encompass Health Corp. | | | 19,675 | | | | 1,626,926 | |
| | |
Teladoc Health, Inc. * | | | 13,125 | | | | 2,624,475 | |
| | |
Tenet Healthcare Corp. * | | | 40,100 | | | | 1,601,193 | |
| | |
| | | | | | | 5,852,594 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Health Technology - 18.1% | | | | | | | | |
| | |
Align Technology, Inc. * | | | 2,550 | | | | 1,362,669 | |
| | |
AtriCure, Inc. * | | | 34,325 | | | | 1,910,873 | |
| | |
Bio-Techne Corp. | | | 4,800 | | | | 1,524,240 | |
| | |
Exact Sciences Corp. * | | | 15,700 | | | | 2,080,093 | |
| | |
ICU Medical, Inc. * | | | 2,825 | | | | 605,934 | |
| | |
Insulet Corp. * | | | 4,950 | | | | 1,265,368 | |
| | |
iRhythm Technologies, Inc. * | | | 11,675 | | | | 2,769,427 | |
| | |
LeMaitre Vascular, Inc. | | | 26,775 | | | | 1,084,388 | |
| | |
NanoString Technologies, Inc. * | | | 11,650 | | | | 779,152 | |
| | |
Pacific Biosciences of California, Inc. * | | | 130,500 | | | | 3,385,170 | |
| | |
PerkinElmer, Inc. | | | 8,400 | | | | 1,205,400 | |
| | |
Sarepta Therapeutics, Inc. * | | | 13,400 | | | | 2,284,566 | |
| | |
STAAR Surgical Co. * | | | 24,525 | | | | 1,942,870 | |
| | |
STERIS, PLC | | | 9,100 | | | | 1,724,814 | |
| | |
| | | | | | | 23,924,964 | |
| | |
Industrial Services - 3.9% | | | | | | | | |
| | |
EMCOR Group, Inc. | | | 15,800 | | | | 1,445,068 | |
| | |
KBR, Inc. | | | 43,500 | | | | 1,345,455 | |
| | |
Waste Connections, Inc. | | | 23,100 | | | | 2,369,367 | |
| | |
| | | | | | | 5,159,890 | |
| | |
Non-Energy Minerals - 3.1% | | | | | | | | |
| | |
AZEK Co., Inc. * | | | 24,200 | | | | 930,490 | |
| | |
Eagle Materials, Inc. | | | 3,975 | | | | 402,866 | |
| | |
Trex Co., Inc. * | | | 33,075 | | | | 2,769,039 | |
| | |
| | | | | | | 4,102,395 | |
| | |
Process Industries - 2.5% | | | | | | | | |
| | |
Olin Corp. | | | 34,300 | | | | 842,408 | |
| | |
Scotts Miracle-Gro Co. | | | 12,600 | | | | 2,509,164 | |
| | |
| | | | | | | 3,351,572 | |
| | |
Producer Manufacturing - 8.8% | | | | | | | | |
| | |
Applied Industrial Technologies, Inc. | | | 7,000 | | | | 545,930 | |
| | |
AZZ, Inc. | | | 8,425 | | | | 399,682 | |
| | |
Carlisle Cos, Inc. | | | 2,200 | | | | 343,596 | |
| | |
Crane Co. | | | 15,400 | | | | 1,195,964 | |
| | |
H&E Equipment Services, Inc. | | | 44,200 | | | | 1,317,602 | |
| | |
Hubbell, Inc. | | | 8,000 | | | | 1,254,320 | |
| | |
IDEX Corp. | | | 3,000 | | | | 597,600 | |
| | |
Lincoln Electric Holdings, Inc. | | | 8,900 | | | | 1,034,625 | |
| | |
MSA Safety, Inc. | | | 11,400 | | | | 1,703,046 | |
| | |
Oshkosh Corp. | | | 7,825 | | | | 673,498 | |
| | |
Rexnord Corp. | | | 34,700 | | | | 1,370,303 | |
| | |
TPI Composites, Inc. * | | | 8,675 | | | | 457,867 | |
| | |
Watsco, Inc. | | | 2,925 | | | | 662,659 | |
| | |
| | | | | | | 11,556,692 | |
See accompanying notes to financial statements.
| | |
| | |
| 38 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Retail Trade - 2.1% | | | | | | | | |
| | |
Casey’s General Stores, Inc. | | | 4,300 | | | | 768,066 | |
| | |
PetMed Express, Inc. | | | 34,250 | | | | 1,098,055 | |
| | |
Ulta Beauty, Inc. * | | | 3,050 | | | | 875,838 | |
| | |
| | | | | | | 2,741,959 | |
| | |
Technology Services - 16.4% | | | | | | | | |
| | |
Altair Engineering, Inc. * | | | 29,983 | | | | 1,744,411 | |
| | |
ANSYS, Inc. * | | | 3,725 | | | | 1,355,155 | |
| | |
Aspen Technology, Inc. * | | | 12,575 | | | | 1,637,894 | |
| | |
Euronet Worldwide, Inc. * | | | 16,600 | | | | 2,405,672 | |
| | |
Globant SA * | | | 10,800 | | | | 2,350,188 | |
| | |
GoDaddy, Inc. * | | | 15,025 | | | | 1,246,324 | |
| | |
HubSpot, Inc. * | | | 7,025 | | | | 2,784,991 | |
| | |
Paycom Software, Inc. * | | | 7,450 | | | | 3,369,263 | |
| | |
PTC, Inc. * | | | 17,600 | | | | 2,105,136 | |
| | |
Qualys, Inc. * | | | 4,350 | | | | 530,135 | |
| | |
Science Applications International Corp. | | | 14,800 | | | | 1,400,672 | |
| | |
Talend SA, ADR * | | | 19,100 | | | | 732,294 | |
| | |
| | | | | | | 21,662,135 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Transportation - 3.1% | | | | | | | | |
| | |
Alaska Air Group, Inc. | | | 11,500 | | | | 598,000 | |
| | |
Knight-Swift Transportation Holdings, Inc. | | | 24,375 | | | | 1,019,362 | |
| | |
Marten Transport, Ltd. | | | 72,075 | | | | 1,241,852 | |
| | |
TFI International, Inc. | | | 25,075 | | | | 1,293,368 | |
| | |
| | | | | | | 4,152,582 | |
| | |
Utilities - 1.1% | | | | | | | | |
| | |
Fortis, Inc. | | | 12,107 | | | | 494,208 | |
| | |
Spire, Inc. | | | 14,675 | | | | 939,787 | |
| | |
| | | | | | | 1,433,995 | |
| | |
Total Common Stocks
(cost: $62,742,704) | | | | | | | 129,360,287 | |
| | |
Short-Term Securities - 2.2% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 2,936,482 | | | | 2,936,482 | |
(cost: $2,936,482) | | | | | | | | |
| | |
Total Investments in Securities - 100.1%
(cost: $65,679,186) | | | | | | | 132,296,769 | |
| | |
Other Assets and Liabilities, net - (0.1%) | | | | | | | (118,056 | ) |
| | |
Total Net Assets - 100.0% | | | | | | $ | 132,178,713 | |
| | | | | | | | |
| * | Non-income producing security. |
ADR — American Depositary Receipt
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant
observable inputs ($) | | Level 3 Significant
unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks ** | | | 129,360,287 | | | — | | — | | | 129,360,287 | |
Short-Term Securities | | | 2,936,482 | | | — | | — | | | 2,936,482 | |
| | | | |
| | | | |
Total: | | | 132,296,769 | | | — | | — | | | 132,296,769 | |
| | | | |
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
|
|
Sit International Growth Fund |
OBJECTIVE STRATEGY
The objective of the Sit International Growth Fund is long-term growth. The Fund seeks to achieve its objective by investing at least 90% of its net assets in common stocks of growth companies domiciled outside the United States. 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 it believes have earnings growth prospects that are greater than the average. Within the selected industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
Fund Performance
The Sit International Growth Fund outperformed the MSCI EAFE Index for the 6-month period ended December 31, 2020, with a return of +22.25%, compared with the +21.61% return for its benchmark.
Factors that Influenced the Fund’s Performance
Contributing favorably to performance during the 6-month period were the Fund’s holdings in software & services (Globant and Euronet Worldwide) and materials (LG Chemical and Rio Tinto) and both its sector overweights and stock selections in semiconductors (Samsung Electronics and Broadcom) and technology hardware (Logitech International and Keyence). Conversely, sectors that hurt performance were telecommunications services (China Tower and Cellnex Telecom, and not owning SoftBank Group), retailing (Alibaba Group), commercial & professional services (HomeServe and Waste Connections), and automobiles (no holdings, particularly Daimler).
Geographically, stock selection in Asia/Pacific ex-Japan (LG Chemical, Baidu, and Broadcom) and Non-Euroland (Logitech International, Interroll, and Hexagon), and region allocation in Latin America (Globant) contributed value, while allocations in the United Kingdom (AstraZeneca and HomeServe), Japan (Astellas Pharma and Terumo), and cash hurt performance.
Outlook and Positioning
We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Unparalleled global stimulus, totaling almost $30 trillion thus far (or over 30% of world GDP), helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. Global real GDP is poised to expand at least +5.0% in 2021, versus a drop of about -4.3% in 2020.As the virus is brought under control, a wave of pent-up demand, inventory restocking, and business investment should take hold. We expect Japan’s economy to grow +2.5% in 2021, following a -5% contraction in 2020, as the uneven recovery from the virus-induced shock continues. China’s economy should grow over +8.0% in 2021, driven by increased private consumption and manufacturing capital spending, which both lagged in 2020. South Korea’s economic growth will be driven by exports and consumer spending, aided by the latest fiscal stimulus package to help small businesses. India’s economy continues to recover, led by domestic demand.
We are overweight Asia ex-Japan and underweight Europe and Japan. We prefer equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early imple-
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI EAFE Index and MSCI EAFE Growth Index. The primary index used to compare the Fund’s performance was changed to the MSCI EAFE Index from the MSCI EAFE Growth Index because the Investment Adviser believes that the MSCI EAFE Index more accurately reflects the Fund’s investment objectives and strategies. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 MSCI EAFE Index (Europe, Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada. This is the Fund’s primary index.
mentation of strict social-distancing measures to control the COVID-19 outbreak. We are constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. Our Chinese stocks are in the new economy and domestic demand-driven sectors. South Korean equities include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. In India, our holdings are in sectors that will profit from an improving domestic economy. Our Europe stocks are oriented toward the technology, healthcare, and services sectors. In Japan, our holdings continue to focus on companies with structural growth drivers and exposure to overseas economies, and that are defensive, domestic consumption-oriented.
Roger J. Sit
Portfolio Manager
| | |
| | |
| 40 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
as of December 31, 2020
| | | | | | | | | | |
| | | Sit | | |
| | | International | | |
| | | Growth | | MSCI EAFE |
| | | Fund | | Index 1 |
Six Month | | | | 22.25% | | | | | 21.61% | |
One Year | | | | 18.63 | | | | | 7.82 | |
Five Year | | | | 7.73 | | | | | 7.45 | |
Ten Year | | | | 5.73 | | | | | 5.51 | |
Since Inception (11/1/91) | | | | 4.56 | | | | | 5.49 | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains and all fee waivers. Without the fee waivers total return and yield figures would have been lower. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 MSCI EAFE Index (Europe, Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada.
FUND DIVERSIFICATION - BY REGION
| | | | | | | | | | |
| | | |
| | | Sit Int’l | | MSCI EAFE |
| | | Growth Fund | | Index |
Europe | | | | 57.2% | | | | | 61.6% | |
Asia | | | | 33.0 | | | | | 37.8 | |
North America | | | | 6.3 | | | | | — | |
Latin America | | | | 1.7 | | | | | — | |
Africa/Middle East | | | | — | | | | | 0.6 | |
Cash & Other Net Assets | | | | 1.8 | | | | | — | |
Based on total net assets as of December 31, 2020. Subject to change.
PORTFOLIO SUMMARY
| | |
Net Asset Value 12/31/20: | | $21.20 Per Share |
Net Asset Value 6/30/20: | | $17.38 Per Share |
Total Net Assets: | | $28.6 Million |
Weighted Average Market Cap: | | $101.8 Billion |
TOP 10 HOLDINGS
1. Logitech International SA
2. Nestle SA
3. LG Chem, Ltd.
4. Schneider Electric SE
5. ASML Holding NV
6. Lonza Group AG
7. Iberdrola SA
8. Tencent Holdings, Ltd.
9. Sony Corp., ADR
10. London Stock Exchange Group, PLC
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit International Growth Fund
Investments are grouped by geographic region.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 97.0% | | | | | | | | |
| | |
Asia - 31.8% | | | | | | | | |
| | |
Australia - 5.0% | | | | | | | | |
| | |
Atlassian Corp., PLC * | | | 2,125 | | | | 496,974 | |
| | |
CSL, Ltd. | | | 1,175 | | | | 256,523 | |
| | |
Macquarie Group, Ltd. | | | 2,600 | | | | 277,579 | |
| | |
Rio Tinto, PLC, ADR | | | 4,400 | | | | 330,968 | |
| | |
Westpac Banking Corp., ADR | | | 4,425 | | | | 65,932 | |
| | |
| | | | | | | 1,427,976 | |
| | |
China/Hong Kong - 11.5% | | | | | | | | |
| | |
AIA Group, Ltd. | | | 32,200 | | | | 394,585 | |
| | |
Alibaba Group Holding, Ltd., ADR * | | | 2,350 | | | | 546,915 | |
| | |
Baidu, Inc., ADR * | | | 2,175 | | | | 470,322 | |
| | |
Budweiser Brewing Co. APAC, Ltd. | | | 21,500 | | | | 70,997 | |
| | |
China Tower Corp., Ltd. | | | 1,342,000 | | | | 197,341 | |
| | |
CSPC Pharmaceutical Group, Ltd. | | | 262,960 | | | | 268,982 | |
| | |
ENN Energy Holdings, Ltd. | | | 18,400 | | | | 270,098 | |
| | |
Ping An Insurance Group Co. of China, Ltd. | | | 33,500 | | | | 410,515 | |
| | |
Tencent Holdings, Ltd. | | | 9,000 | | | | 654,761 | |
| | |
| | | | | | | 3,284,516 | |
| | |
Japan - 9.7% | | | | | | | | |
| | |
Astellas Pharma, Inc. | | | 17,700 | | | | 273,244 | |
| | |
Keyence Corp. | | | 1,000 | | | | 561,716 | |
| | |
Recruit Holdings Co., Ltd. | | | 11,200 | | | | 468,696 | |
| | |
Shiseido Co., Ltd. | | | 4,100 | | | | 283,353 | |
| | |
Sony Corp., ADR | | | 6,300 | | | | 636,930 | |
| | |
Terumo Corp. | | | 13,100 | | | | 547,065 | |
| | |
| | | | | | | 2,771,004 | |
| | |
Singapore - 1.8% | | | | | | | | |
| | |
DBS Group Holdings, Ltd. | | | 15,600 | | | | 295,569 | |
| | |
Singapore Technologies Engineering, Ltd. | | | 78,400 | | | | 226,610 | |
| | |
| | | | | | | 522,179 | |
| | |
South Korea - 3.8% | | | | | | | | |
| | |
LG Chem, Ltd. | | | 975 | | | | 739,575 | |
| | |
Samsung Electronics Co., Ltd., GDR | | | 185 | | | | 337,625 | |
| | |
| | | | | | | 1,077,200 | |
| | |
Europe - 57.2% | | | | | | | | |
| | |
Denmark - 0.8% | | | | | | | | |
| | |
Bavarian Nordic * | | | 7,550 | | | | 231,740 | |
| | |
France - 8.3% | | | | | | | | |
| | |
AXA SA | | | 11,750 | | | | 280,083 | |
| | |
Dassault Systemes SE | | | 2,625 | | | | 532,815 | |
| | |
Safran SA * | | | 3,200 | | | | 453,281 | |
| | |
Sanofi, ADR | | | 3,800 | | | | 184,642 | |
| | |
Schneider Electric SE | | | 5,000 | | | | 722,606 | |
| | |
Talend SA, ADR * | | | 4,900 | | | | 187,866 | |
| | |
| | | | | | | 2,361,293 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Germany - 5.9% | | | | | | | | |
| | |
adidas AG * | | | 1,630 | | | | 593,205 | |
| | |
Allianz SE | | | 2,250 | | | | 551,667 | |
| | |
Deutsche Post AG | | | 1,400 | | | | 69,268 | |
| | |
Muenchener Rueckversicherungs AG | | | 435 | | | | 129,028 | |
| | |
Siemens AG | | | 2,225 | | | | 319,439 | |
| | |
Siemens Energy AG * | | | 1,112 | | | | 40,754 | |
| | |
| | | | | | | 1,703,361 | |
| | |
Ireland - 2.0% | | | | | | | | |
| | |
CRH, PLC, ADR | | | 4,800 | | | | 204,384 | |
| | |
STERIS, PLC | | | 1,950 | | | | 369,603 | |
| | |
| | | | | | | 573,987 | |
| | |
Netherlands - 3.6% | | | | | | | | |
| | |
ASML Holding NV | | | 1,450 | | | | 707,194 | |
| | |
Koninklijke Philips NV * | | | 5,866 | | | | 317,761 | |
| | |
| | | | | | | 1,024,955 | |
| | |
Spain - 3.9% | | | | | | | | |
| | |
Cellnex Telecom SA | | | 7,733 | | | | 464,038 | |
| | |
Iberdrola SA | | | 45,900 | | | | 656,063 | |
| | |
| | | | | | | 1,120,101 | |
| | |
Sweden - 2.2% | | | | | | | | |
| | |
Hexagon AB | | | 3,800 | | | | 346,303 | |
| | |
Telefonaktiebolaget LM Ericsson, ADR | | | 23,575 | | | | 281,721 | |
| | |
| | | | | | | 628,024 | |
| | |
Switzerland - 16.7% | | | | | | | | |
| | |
Garmin, Ltd. | | | 3,600 | | | | 430,776 | |
| | |
Interroll Holding AG | | | 120 | | | | 365,300 | |
| | |
Logitech International SA | | | 8,125 | | | | 789,669 | |
| | |
Lonza Group AG | | | 1,075 | | | | 690,681 | |
| | |
Nestle SA | | | 6,600 | | | | 777,269 | |
| | |
Novartis AG | | | 4,325 | | | | 408,659 | |
| | |
Partners Group Holding AG | | | 490 | | | | 575,624 | |
| | |
Roche Holding AG | | | 1,320 | | | | 460,725 | |
| | |
Zurich Insurance Group AG | | | 680 | | | | 286,886 | |
| | |
| | | | | | | 4,785,589 | |
| | |
United Kingdom - 13.8% | | | | | | | | |
| | |
Ashtead Group, PLC | | | 9,600 | | | | 451,341 | |
| | |
AstraZeneca, PLC, ADR | | | 8,300 | | | | 414,917 | |
| | |
BAE Systems, PLC | | | 52,600 | | | | 351,596 | |
| | |
Coca-Cola European Partners, PLC | | | 5,400 | | | | 269,082 | |
| | |
Dechra Pharmaceuticals, PLC | | | 6,300 | | | | 297,226 | |
| | |
Diageo, PLC, ADR | | | 2,775 | | | | 440,698 | |
| | |
Entain, PLC * | | | 8,375 | | | | 129,818 | |
| | |
HomeServe, PLC | | | 22,975 | | | | 322,038 | |
| | |
London Stock Exchange Group, PLC | | | 5,100 | | | | 628,240 | |
| | |
Reckitt Benckiser Group, PLC | | | 3,100 | | | | 277,332 | |
| | |
RELX, PLC | | | 14,700 | | | | 359,704 | |
| | |
| | | | | | | 3,941,992 | |
See accompanying notes to financial statements.
| | |
| | |
| 42 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Latin America - 1.7% | | | | | | | | |
| | |
Argentina - 1.7% | | | | | | | | |
| | |
Globant SA * | | | 2,225 | | | | 484,182 | |
| | |
North America - 6.3% | | | | | | | | |
| | |
Canada - 2.8% | | | | | | | | |
Alimentation Couche-Tard, Inc. | | | 5,200 | | | | 177,214 | |
BRP, Inc. | | | 2,925 | | | | 193,231 | |
Colliers International Group, Inc. | | | 1,600 | | | | 142,608 | |
| | |
Waste Connections, Inc. | | | 2,750 | | | | 282,068 | |
| | |
| | | | | | | 795,121 | |
| | |
United States - 3.5% | | | | | | | | |
Broadcom, Inc. | | | 1,025 | | | | 448,796 | |
Euronet Worldwide, Inc. * | | | 1,950 | | | | 282,594 | |
| | |
Mondelez International, Inc. | | | 4,800 | | | | 280,656 | |
| | |
| | | | | | | 1,012,046 | |
| |
Total Common Stocks
(cost: $16,970,675) | | | | 27,745,266 | |
| | |
Investment Companies - 1.2% | | | | | | | | |
| | |
iShares MSCI India ETF
| | | 8,700 | | | | 349,914 | |
| | |
(cost: $258,117) | | | | | | | | |
| | |
Short-Term Securities - 1.7% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%
| | | 470,617 | | | | 470,617 | |
(cost: $470,617) | | | | | | | | |
| |
Total Investments in Securities - 99.9%
(cost: $17,699,409) | | | | 28,565,797 | |
| | |
Other Assets and Liabilities, net - 0.1% | | | | | | | 25,679 | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 28,591,476 | |
| | | | | | | | |
| * | Non-income producing security. |
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
PLC — Public Limited Company
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit International Growth Fund (Continued)
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | Investment in Securities | |
| | | | |
| | | | |
| | | Level 1 Quoted Price ($) | | | Level 2 Other significant
observable inputs ($) | | Level 3 Significant
unobservable inputs ($) | | Total ($) | |
| | | | |
Common Stocks | | | | | | | | | | | | |
Argentina | | | 484,182 | | | — | | — | | | 484,182 | |
Australia | | | 1,427,976 | | | — | | — | | | 1,427,976 | |
Canada | | | 795,121 | | | — | | — | | | 795,121 | |
China/Hong Kong | | | 3,284,516 | | | — | | — | | | 3,284,516 | |
Denmark | | | 231,740 | | | — | | — | | | 231,740 | |
France | | | 2,361,293 | | | — | | — | | | 2,361,293 | |
Germany | | | 1,703,361 | | | — | | — | | | 1,703,361 | |
Ireland | | | 573,987 | | | — | | — | | | 573,987 | |
Japan | | | 2,771,004 | | | — | | — | | | 2,771,004 | |
Netherlands | | | 1,024,955 | | | — | | — | | | 1,024,955 | |
Singapore | | | 522,179 | | | — | | — | | | 522,179 | |
South Korea | | | 1,077,200 | | | — | | — | | | 1,077,200 | |
Spain | | | 1,120,101 | | | — | | — | | | 1,120,101 | |
Sweden | | | 628,024 | | | — | | — | | | 628,024 | |
Switzerland | | | 4,785,589 | | | — | | — | | | 4,785,589 | |
United Kingdom | | | 3,941,992 | | | — | | — | | | 3,941,992 | |
United States | | | 1,012,046 | | | — | | — | | | 1,012,046 | |
Investment Companies | | | 349,914 | | | — | | — | | | 349,914 | |
Short-Term Securities | | | 470,617 | | | — | | — | | | 470,617 | |
| | | | |
| | | | |
Total: | | | 28,565,797 | | | — | | — | | | 28,565,797 | |
| | | | |
Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
| | |
| | |
| 44 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
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|
|
Sit Developing Markets Growth Fund |
OBJECTIVE & STRATEGY
The objective of the Sit Developing Markets Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of 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.
Fund Performance
The Sit Developing Markets Growth Fund increased +28.28% during the 6-month period ended December 31, 2020, compared with the MSCI Emerging Markets Index return of +29.76%.
Factors that Influenced the Fund’s Performance
Contributing to underperformance during the 6-month period were the Fund’s underweight in automobiles (particularly not owning NIO), its stock selection in consumer services (TAL Education Group), pharmaceuticals (CSPC Pharmaceutical Group) and technology hardware (owning Hon Hai Precision Industry and not owning Xiaomi), and its large cash position. On the positive side, sectors that helped performance were materials (LG Chemical and Southern Copper), banks (HDFC Bank), media & entertainment (Baidu), and real estate (underweight).
Geographically, holdings in the Asia/Pacific ex-Japan region (owning TAL Education Group, CSPC Pharmaceutical Group, PT XL Axiata, and China Tower, and not owning NIO) and its weighting in North America detracted from performance, while Latin America (PagSeguro Digital and Globant) and Africa/Mideast (NICE ) added value. By country, the Fund’s holdings in South Korea, Taiwan, and the United States hurt returns, while its sector overweight and holdings in China, its sector overweight in Israel, and its stock selection in Argentina helped performance.
Outlook and Positioning
We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. China’s economy should recover and grow over +8.0% in 2021, driven in part by increased private consumption and manufacturing capital spending, which both lagged in 2020. Also, insofar as 2021 marks the beginning of the nation’s 14th Five Year Plan and the 100th anniversary of the Chinese Communist Party, growth stability will be a top priority. South Korea’s economic growth will be driven by exports and consumer spending, aided by the latest fiscal stimulus package to help small businesses and vulnerable workers. India’s economic recovery will be led by domestic demand. The outlook for LatinAmerica is more cautious, as new daily coronavirus cases in Brazil and Mexico are rebounding, and Mexico’s fiscal support has been negligible, at just 0.6% of GDP, which will make economic recovery challenging there.
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI Emerging Markets Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity market performance of emerging markets. It is not possible to invest directly in an index. This is the Fund’s primary index.
We remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak. We remain constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. We are cautious on Chinese Internet stocks near term given regulation uncertainties but remain optimistic on the segment’s growth prospects longer term. South Korean equities include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. Electric vehicle demand is expected to rise as part of the secular worldwide commitment to net-zero carbon emissions by 2060. Our equity holdings in India are positioned in sectors that will profit from an improving domestic economy, i.e., consumer, financials, energy, information services, and industrials.
Roger J. Sit Raymond E. Sit
Portfolio Managers
| | |
| | |
| 46 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURN
as of December 31, 2020
| | | | | | | | |
| | | Sit Developing Markets Growth Fund | | MSCI Emerging Markets Index 1 |
Six Month | | | 28.28 | % | | | 29.76 | % |
One Year | | | 23.14 | | | | 15.84 | |
Five Year | | | 13.28 | | | | 10.21 | |
Ten Year | | | 2.80 | | | | 1.15 | |
Since Inception | | | 4.89 | | | | 3.81 | |
(7/1/94) | | | | | | | | |
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. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity market performance of emerging markets. It is not possible to invest directly in an index.
FUND DIVERSIFICATION - BY REGION
| | | | | | | | |
| | | Sit Developing Markets Growth Fund | | MSCI Emerging Markets Index |
Asia | | | 73.3 | % | | | 80.0 | % |
Africa/Middle East | | | 8.8 | | | | 7.7 | |
Latin America | | | 8.1 | | | | 7.9 | |
North America | | | 4.0 | | | | — | |
Europe | | | — | | | | 4.4 | |
Cash & Other Net Assets | | | 5.8 | | | | — | |
Based on total net assets as of December 31, 2020. Subject to change.
PORTFOLIO SUMMARY
| | |
Net Asset Value 12/31/20: | | $20.83 Per Share |
| Net Asset Value 6/30/20: | | $16.28 Per Share |
| Total Net Assets: | | $13.5 Million |
| Weighted Average Market Cap: | | $181.6 Billion |
TOP 10 HOLDINGS
1. Samsung Electronics Co., Ltd.
2. Tencent Holdings, Ltd.
3. Taiwan Semiconductor Co.
4. Alibaba Group Holding, Ltd., ADR
5. TAL Education Group, ADR
6. iShares MSCI India ETF
7. LG Chem, Ltd.
8. NICE Systems, Ltd., ADR
9. JD.com, Inc., ADR
10. HDFC Bank, Ltd., ADR
Based on total net assets as of December 31, 2020. Subject to change.
SECTOR ALLOCATION
Based on total net assets as of December 31, 2020. Subject to change.
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2020
Sit Developing Markets Growth Fund
Investments are grouped by geographic region.
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Common Stocks - 90.9% | | | | | | | | |
| | |
Africa/Middle East - 8.8% | | | | | | | | |
| | |
Israel - 3.1% | | | | | | | | |
| | |
NICE Systems, Ltd., ADR * | | | 1,500 | | | | 425,310 | |
| | | | | | | | |
| | |
South Africa - 5.7% | | | | | | | | |
| | |
Bid Corp., Ltd. | | | 13,200 | | | | 236,271 | |
| | |
Bidvest Group, Ltd. | | | 5,525 | | | | 59,036 | |
| | |
Naspers, Ltd. | | | 1,425 | | | | 292,792 | |
| | |
Prosus NV | | | 1,700 | | | | 183,506 | |
| | | | | | | | |
| | |
| | | | | | | 771,605 | |
| | | | | | | | |
| | |
Asia - 70.0% | | | | | | | | |
| | |
Australia - 1.4% | | | | | | | | |
| | |
Rio Tinto, PLC, ADR | | | 2,475 | | | | 186,169 | |
| | | | | | | | |
| | |
China/Hong Kong - 39.7% | | | | | | | | |
| | |
AIA Group, Ltd. | | | 21,400 | | | | 262,240 | |
| | |
Alibaba Group Holding, Ltd., ADR * | | | 2,875 | | | | 669,099 | |
| | |
Baidu, Inc., ADR * | | | 1,700 | | | | 367,608 | |
| | |
Budweiser Brewing Co. APAC, Ltd. | | | 10,200 | | | | 33,682 | |
| | |
China Construction Bank Corp. | | | 125,000 | | | | 94,970 | |
| | |
China Mengniu Dairy Co., Ltd. | | | 48,000 | | | | 289,766 | |
| | |
China Petroleum & Chemical Corp., ADR | | | 1,400 | | | | 62,440 | |
| | |
China Tower Corp., Ltd. | | | 704,000 | | | | 103,523 | |
| | |
CSPC Pharmaceutical Group, Ltd. | | | 230,400 | | | | 235,677 | |
| | |
ENN Energy Holdings, Ltd. | | | 21,900 | | | | 321,475 | |
| | |
GDS Holdings, Ltd., ADR * | | | 600 | | | | 56,184 | |
| | |
Hong Kong Exchanges & Clearing, Ltd. | | | 5,100 | | | | 279,589 | |
| | |
JD.com, Inc., ADR * | | | 4,450 | | | | 391,155 | |
| | |
Meituan Dianping * | | | 6,000 | | | | 228,005 | |
| | |
Ping An Insurance Group Co. of China, Ltd. | | | 19,900 | | | | 243,858 | |
| | |
Sinopharm Group Co., Ltd. | | | 44,900 | | | | 109,232 | |
| | |
TAL Education Group, ADR * | | | 7,900 | | | | 564,929 | |
| | |
Tencent Holdings, Ltd. | | | 11,400 | | | | 829,364 | |
| | |
Tencent Music Entertainment Group, ADR * | | | 5,525 | | | | 106,301 | |
| | |
WH Group, Ltd. | | | 132,500 | | | | 111,094 | |
| | | | | | | | |
| | |
| | | | | | | 5,360,191 | |
| | | | | | | | |
| | |
India - 2.9% | | | | | | | | |
| | |
HDFC Bank, Ltd., ADR * | | | 5,350 | | | | 386,591 | |
| | | | | | | | |
| | |
Indonesia - 1.9% | | | | | | | | |
| | |
Astra International Tbk PT | | | 176,000 | | | | 75,473 | |
| | |
XL Axiata Tbk PT | | | 948,800 | | | | 184,358 | |
| | | | | | | | |
| | |
| | | | | | | 259,831 | |
| | | | | | | | |
| | |
Singapore - 3.0% | | | | | | | | |
| | |
DBS Group Holdings, Ltd. | | | 14,500 | | | | 274,728 | |
| | |
Singapore Technologies Engineering, Ltd. | | | 44,000 | | | | 127,179 | |
| | | | | | | | |
| | |
| | | | | | | 401,907 | |
| | | | | | | | |
| | |
South Korea - 12.4% | | | | | | | | |
| | |
LG Chem, Ltd. | | | 575 | | | | 436,159 | |
| | |
Medytox, Inc. | | | 322 | | | | 51,930 | |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
NAVER Corp. | | | 225 | | | | 60,584 | |
| | |
Samsung Electronics Co., Ltd. | | | 12,250 | | | | 913,422 | |
| | |
Shinhan Financial Group Co., Ltd. * | | | 7,200 | | | | 212,428 | |
| | | | | | | | |
| | |
| | | | | | | 1,674,523 | |
| | | | | | | | |
Taiwan - 7.9% | | | | | | | | |
| | |
Cathay Financial Holding Co., Ltd. | | | 82,085 | | | | 123,428 | |
| | |
Hon Hai Precision Industry Co., Ltd., GDR | | | 26,835 | | | | 174,964 | |
| | |
Taiwan Semiconductor Co. | | | 37,482 | | | | 707,006 | |
| | |
Taiwan Semiconductor Co., ADR | | | 600 | | | | 65,424 | |
| | | | | | | | |
| | |
| | | | | | | 1,070,822 | |
| | | | | | | | |
Thailand - 0.8% | | | | | | | | |
| | |
Bangkok Bank PCL | | | 27,700 | | | | 110,023 | |
| | | | | | | | |
| | |
Latin America - 8.1% | | | | | | | | |
| | |
Argentina - 1.9% | | | | | | | | |
| | |
Globant SA * | | | 1,175 | | | | 255,692 | |
| | | | | | | | |
| | |
Brazil - 3.6% | | | | | | | | |
| | |
Ambev SA, ADR | | | 21,575 | | | | 66,020 | |
| | |
Banco Bradesco SA | | | 25,083 | | | | 131,060 | |
| | |
Lojas Renner SA | | | 9,400 | | | | 78,795 | |
| | |
Pagseguro Digital, Ltd. * | | | 3,800 | | | | 216,144 | |
| | | | | | | | |
| | |
| | | | | | | 492,019 | |
| | | | | | | | |
| | |
Chile - 0.7% | | | | | | | | |
| | |
Banco Santander Chile, ADR | | | 4,700 | | | | 89,253 | |
| | | | | | | | |
Peru - 1.9% | | | | | | | | |
| | |
Southern Copper Corp. | | | 3,900 | | | | 253,968 | |
| | | | | | | | |
| | |
North America - 4.0% | | | | | | | | |
| | |
Mexico - 0.9% | | | | | | | | |
| | |
Fomento Economico Mexicano, ADR | | | 1,575 | | | | 119,338 | |
| | | | | | | | |
| | |
United States - 3.1% | | | | | | | | |
| | |
Broadcom, Inc. | | | 550 | | | | 240,818 | |
| | |
Skyworks Solutions, Inc. | | | 1,150 | | | | 175,812 | |
| | | | | | | | |
| | |
| | | | | | | 416,630 | |
| | | | | | | | |
Total Common Stocks
(cost: $6,983,272) | | | | | | | 12,273,872 | |
| | | | | | | | |
| | |
Investment Companies - 3.3% | | | | | | | | |
| | |
iShares MSCI India ETF | | | 11,100 | | | | 446,442 | |
| | | | | | | | |
| | |
(cost: $333,061) | | | | | | | | |
See accompanying notes to financial statements.
| | |
| | |
| 48 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | |
| |
| | |
| Name of Issuer | | Quantity | | | Fair Value ($) | |
| |
| | |
Short-Term Securities - 5.7% | | | | | | | | |
| | |
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01% | | | 773,736 | | | | 773,736 | |
| | | | | | | | |
(cost: $773,736) | | | | | | | | |
| | |
Total Investments in Securities - 99.9%
(cost: $8,090,069) | | | | | | | 13,494,050 | |
Other Assets and Liabilities, net - 0.1% | | | | | | | 7,193 | |
| | | | | | | | |
| | |
Total Net Assets - 100.0% | | | | | | $ | 13,501,243 | |
| | | | | | | | |
| * | Non-income producing security. |
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| | | | | | | | | | | | |
| | | | | Investment in Securities | | |
| | | | |
| | | Level 1
Quoted
Price ($) | | Level 2 Other significant observable inputs ($) | | Level 3 Significant unobservable inputs ($) | | Total ($) |
| | | | |
Common Stocks | | | | | | | | | | | | |
Argentina | | | 255,692 | | | — | | — | | | 255,692 | |
Australia | | | 186,169 | | | — | | — | | | 186,169 | |
Brazil | | | 492,019 | | | — | | — | | | 492,019 | |
Chile | | | 89,253 | | | — | | — | | | 89,253 | |
China/Hong Kong | | | 5,360,191 | | | — | | — | | | 5,360,191 | |
India | | | 386,591 | | | — | | — | | | 386,591 | |
Indonesia | | | 259,831 | | | — | | — | | | 259,831 | |
Israel | | | 425,310 | | | — | | — | | | 425,310 | |
Mexico | | | 119,338 | | | — | | — | | | 119,338 | |
Peru | | | 253,968 | | | — | | — | | | 253,968 | |
Singapore | | | 401,907 | | | — | | — | | | 401,907 | |
South Africa | | | 771,605 | | | — | | — | | | 771,605 | |
South Korea | | | 1,674,523 | | | — | | — | | | 1,674,523 | |
Taiwan | | | 1,070,822 | | | — | | — | | | 1,070,822 | |
Thailand | | | 110,023 | | | — | | — | | | 110,023 | |
United States | | | 416,630 | | | — | | — | | | 416,630 | |
Investment Companies | | | 446,442 | | | — | | — | | | 446,442 | |
Short-Term Securities | | | 773,736 | | | — | | — | | | 773,736 | |
| | | | |
| | | | |
Total: | | | 13,494,050 | | | — | | — | | | 13,494,050 | |
| | | | |
Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.
See accompanying notes to financial statements.
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
December 31, 2020
| | | | | | |
| | | Sit Balanced Fund | | Sit Dividend Growth Fund | | Sit Global Dividend Growth Fund |
ASSETS | | | | | | |
Investments in securities, at identified cost | | $44,195,636 | | $159,452,575 | | $24,616,756 |
| | | | | | |
| | | |
Investments in securities, at fair value - see accompanying schedule for detail | | $61,002,029 | | $222,142,692 | | $41,061,184 |
Cash in bank on demand deposit | | — | | 99 | | — |
Accrued interest and dividends receivable | | 145,436 | | 210,409 | | 53,063 |
Receivable for investment securities sold | | 115,136 | | 739,026 | | — |
Receivable for Fund shares sold | | 44,104 | | 129,166 | | 1,444 |
| | | | | | |
| | | |
Total assets | | 61,306,705 | | 223,221,392 | | 41,115,691 |
| | | | | | |
| | | |
LIABILITIES | | | | | | |
Payable for investment securities purchased | | 61,995 | | 199,946 | | — |
Payable for Fund shares redeemed | | 5,638 | | 162,810 | | — |
Accrued investment management fees and advisory fees | | 50,729 | | 132,014 | | 34,301 |
Accrued 12b-1 fees (Class S) | | — | | 6,246 | | 768 |
| | | | | | |
| | | |
Total liabilities | | 118,362 | | 501,016 | | 35,069 |
| | | | | | |
| | | |
Net assets applicable to outstanding capital stock | | $61,188,343 | | $222,720,376 | | $41,080,622 |
| | | | | | |
Net assets consist of: | | | | | | |
Capital (par value and paid-in surplus) | | $44,110,269 | | $160,514,168 | | $26,225,140 |
Total distributable earnings (loss), including unrealized appreciation (depreciation) | | 17,078,074 | | 62,206,208 | | 14,855,482 |
| | | | | | |
| | | |
| | $61,188,343 | | $222,720,376 | | $41,080,622 |
| | | | | | |
| | | |
Outstanding shares: | | | | | | |
Common Shares (Class I) * | | 2,037,333 | | 12,687,091 | | 1,852,950 |
| | | | | | |
Common Shares (Class S) * | | — | | 1,967,282 | | 183,533 |
| | | | | | |
| | | |
Net assets applicable to outstanding shares: | | | | | | |
Common Shares (Class I) * | | $61,188,343 | | $192,961,493 | | $37,379,547 |
| | | | | | |
Common Shares (Class S) * | | — | | 29,758,883 | | 3,701,075 |
| | | | | | |
| | | |
Net asset value per share of outstanding capital stock: | | | | | | |
Common Shares (Class I) * | | $30.03 | | $15.21 | | $20.17 |
| | | | | | |
Common Shares (Class S) * | | — | | $15.13 | | $20.17 |
| | | | | | |
| * | Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap Dividend Growth Funds offer multiple share classes (I and S). All other Funds offer a single share class. | |
See accompanying notes to financial statements.
| | |
| | |
| 50 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Sit
Large Cap
Growth
Fund | | | Sit
ESG
Growth
Fund | | | Sit
Mid Cap
Growth
Fund | | | Sit
Small Cap
Dividend
Growth
Fund | | | Sit
Small Cap
Growth
Fund | | | Sit
International
Growth
Fund | | | Sit
Developing
Markets
Growth
Fund | |
| | | | | | |
| | $61,174,723 | | | | $5,040,922 | | | | $98,737,913 | | | | $13,735,807 | | | | $65,679,186 | | | | $17,699,409 | | | | $8,090,069 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $157,243,427 | | | | $7,956,055 | | | | $214,081,293 | | | | $19,504,978 | | | | $132,296,769 | | | | $28,565,797 | | | | $13,494,050 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | 3 | | | | 47 | |
| | 49,353 | | | | 8,720 | | | | 29,171 | | | | 19,485 | | | | 62,546 | | | | 59,180 | | | | 21,311 | |
| | — | | | | — | | | | — | | | | 23,245 | | | | 609,413 | | | | — | | | | — | |
| | 11,458 | | | | 6,049 | | | | 6,191 | | | | 1,422 | | | | 5,079 | | | | 1,605 | | | | 1,225 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 157,304,238 | | | | 7,970,824 | | | | 214,116,655 | | | | 19,549,130 | | | | 132,973,807 | | | | 28,626,585 | | | | 13,516,633 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 247,980 | | | | — | | | | — | | | | 63,043 | | | | 600,908 | | | | — | | | | — | |
| | 68,119 | | | | — | | | | 139,985 | | | | — | | | | 30,376 | | | | — | | | | — | |
| | 130,635 | | | | 6,541 | | | | 222,060 | | | | 16,020 | | | | 163,810 | | | | 35,109 | | | | 15,390 | |
| | — | | | | 771 | | | | — | | | | 964 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 446,734 | | | | 7,312 | | | | 362,045 | | | | 80,027 | | | | 795,094 | | | | 35,109 | | | | 15,390 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $156,857,504 | | | | $7,963,512 | | | | $213,754,610 | | | | $19,469,103 | | | | $132,178,713 | | | | $28,591,476 | | | | $13,501,243 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $59,505,868 | | | | $5,089,431 | | | | $92,550,931 | | | | $13,755,448 | | | | $63,453,982 | | | | $19,507,071 | | | | $8,071,687 | |
| | | | | | |
| | 97,351,636 | | | | 2,874,081 | | | | 121,203,679 | | | | 5,713,655 | | | | 68,724,731 | | | | 9,084,405 | | | | 5,429,556 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $156,857,504 | | | | $7,963,512 | | | | $213,754,610 | | | | $19,469,103 | | | | $132,178,713 | | | | $28,591,476 | | | | $13,501,243 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 2,856,561 | | | | 260,002 | | | | 9,132,154 | | | | 1,020,206 | | | | 1,808,986 | | | | 1,348,440 | | | | 648,107 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 228,372 | | | | — | | | | 320,705 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $156,857,504 | | | | $4,250,145 | | | | $213,754,610 | | | | $14,813,101 | | | | $132,178,713 | | | | $28,591,476 | | | | $13,501,243 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | 3,713,367 | | | | — | | | | 4,656,002 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $54.91 | | | | $16.35 | | | | $23.41 | | | | $14.52 | | | | $73.07 | | | | $21.20 | | | | $20.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | $16.26 | | | | — | | | | $14.52 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended December 31, 2020
| | | | | | | | | | | | |
| | | Sit
Balanced
Fund | | | Sit
Dividend
Growth
Fund | | | Sit
Global
Dividend
Growth
Fund | |
Investment income: | | | | | | | | | | | | |
Income: | | | | | | | | | | | | |
Dividends* | | | $258,212 | | | | $2,357,667 | | | | $375,458 | |
Interest | | | 231,135 | | | | 98 | | | | 46 | |
| | | | | | | | | | | | |
| | | |
Total income | | | 489,347 | | | | 2,357,765 | | | | 375,504 | |
| | | | | | | | | | | | |
| | | |
Expenses (note 4): | | | | | | | | | | | | |
Investment management and advisory service fee | | | 271,840 | | | | 1,071,780 | | | | 236,732 | |
12b-1 fees (Class S) | | | — | | | | 36,696 | | | | 4,404 | |
| | | | | | | | | | | | |
| | | |
Total expenses | | | 271,840 | | | | 1,108,476 | | | | 241,136 | |
| | | | | | | | | | | | |
Less fees and expenses waived by investment adviser | | | — | | | | (321,534 | ) | | | (47,346 | ) |
| | | | | | | | | | | | |
| | | |
Total net expenses | | | 271,840 | | | | 786,942 | | | | 193,790 | |
| | | | | | | | | | | | |
| | | |
Net investment income (loss) | | | 217,507 | | | | 1,570,823 | | | | 181,714 | |
| | | | | | | | | | | | |
| | | |
Realized and unrealized gain (loss): | | | | | | | | | | | | |
Net realized gain (loss) on investments | | | 300,391 | | | | 8,316,872 | | | | (536,568 | ) |
Net realized gain (loss) on foreign currency transactions | | | — | | | | — | | | | 872 | |
| | | |
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | | | 7,134,385 | | | | 30,094,260 | | | | 7,423,138 | |
| | | | | | | | | | | | |
| | | |
Net gain (loss) | | | 7,434,776 | | | | 38,411,132 | | | | 6,887,442 | |
| | | | | | | | | | | | |
| | | |
Net increase (decrease) in net assets resulting from operations | | | $7,652,283 | | | | $39,981,955 | | | | $7,069,156 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
* Foreign taxes withheld on dividends received | | | — | | | | $10,338 | | | | $6,130 | |
See accompanying notes to financial statements.
| | |
| | |
| 52 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Sit
Large Cap
Growth
Fund | | | Sit
ESG
Growth
Fund | | | Sit
Mid Cap
Growth
Fund | | | Sit
Small Cap
Dividend
Growth
Fund | | | Sit
Small Cap
Growth
Fund | | | Sit
International
Growth
Fund | | | Sit
Developing
Markets
Growth
Fund | |
| | | | | | |
| | $653,213 | | | | $56,591 | | | | $817,241 | | | | $186,010 | | | | $546,392 | | | | $158,061 | | | | $80,714 | |
| | 128 | | | | 28 | | | | 583 | | | | 39 | | | | 269 | | | | — | | | | 45 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 653,341 | | | | 56,619 | | | | 817,824 | | | | 186,049 | | | | 546,661 | | | | 158,061 | | | | 80,759 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 724,586 | | | | 45,705 | | | | 1,193,568 | | | | 107,722 | | | | 854,608 | | | | 191,842 | | | | 116,238 | |
| | — | | | | 4,309 | | | | —5,090 | | | | | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 724,586 | | | | 50,014 | | | | 1,193,568 | | | | 112,812 | | | | 854,608 | | | | 191,842 | | | | 116,238 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | — | | | | (9,141 | ) | | | — | | | | (21,544 | ) | | | — | | | | — | | | | (34,872 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 724,586 | | | | 40,873 | | | | 1,193,568 | | | | 91,268 | | | | 854,608 | | | | 191,842 | | | | 81,366 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | (71,245) | | | | 15,746 | | | | (375,744 | ) | | | 94,781 | | | | (307,947 | ) | | | (33,781 | ) | | | (607 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 5,005,414 | | | | 59,537 | | | | 10,495,260 | | | | 188,950 | | | | 6,894,306 | | | | (305,950 | ) | | | 92,855 | |
| | — | | | | 15 | | | | (191 | ) | | | — | | | | — | | | | 412 | | | | (2 | ) |
| | | | | | |
| | 24,387,604 | | | | 1,162,017 | | | | 37,317,016 | | | | 4,045,660 | | | | 26,354,375 | | | | 5,460,008 | | | | 2,784,010 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | 29,393,018 | | | | 1,221,569 | | | | 47,812,085 | | | | 4,234,610 | | | | 33,248,681 | | | | 5,154,470 | | | | 2,876,863 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | $29,321,773 | | | | $1,237,315 | | | | $47,436,341 | | | | $4,329,391 | | | | $32,940,734 | | | | $5,120,689 | | | | $2,876,256 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | — | | | | $1,802 | | | | $2,279 | | | | $589 | | | | $4,629 | | | | $11,977 | | | | $11,241 | |
STATEMENTS OF CHANGES IN NET ASSETS
| | | | | | | | | | | | | | | | | | | | |
| | | Sit Balanced Fund | | | | | | Sit Dividend Growth Fund | |
| | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30,
2020 | | | | | | Six Months Ended
December 31,
2020 (Unaudited) | | | Year Ended
June 30,
2020 | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | $217,507 | | | | $369,252 | | | | | | | | $1,570,823 | | | | $3,661,546 | |
Net realized gain (loss) on investments and foreign currency transactions | | | 300,391 | | | | 696,800 | | | | | | | | 8,316,872 | | | | 10,697,810 | |
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | 7,134,385 | | | | 2,719,030 | | | | | | | | 30,094,260 | | | | (2,538,615 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 7,652,283 | | | | 3,785,082 | | | | | | | | 39,981,955 | | | | 11,820,741 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Distributions from: | | | | | | | | | | | | | | | | | | | | |
Net investment income and net realized gains | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (801,971 | ) | | | (2,136,305 | ) | | | | | | | (12,575,977 | ) | | | (25,345,878 | ) |
Common shares (Class S) | | | — | | | | — | | | | | | | | (1,885,036 | ) | | | (4,407,144 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (801,971 | ) | | | (2,136,305 | ) | | | | | | | (14,461,013 | ) | | | (29,753,022 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 11,780,134 | | | | 17,316,727 | | | | | | | | 7,385,110 | | | | 25,105,046 | |
Common shares (Class S) | | | — | | | | — | | | | | | | | 481,204 | | | | 1,253,693 | |
Reinvested distributions | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 791,979 | | | | 2,103,223 | | | | | | | | 11,888,153 | | | | 23,804,702 | |
Common shares (Class S) | | | — | | | | — | | | | | | | | 1,881,095 | | | | 4,392,885 | |
Payments for shares redeemed | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (4,891,583 | ) | | | (8,876,091 | ) | | | | | | | (20,986,037 | ) | | | (75,291,359 | ) |
Common shares (Class S) | | | — | | | | — | | | | | | | | (5,301,885 | ) | | | (13,413,244 | ) |
| | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets from capital transactions | | | 7,680,530 | | | | 10,543,859 | | | | | | | | (4,652,360 | ) | | | (34,148,277 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets | | | 14,530,842 | | | | 12,192,636 | | | | | | | | 20,868,582 | | | | (52,080,558 | ) |
| | | | | |
Net assets: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 46,657,501 | | | | 34,464,865 | | | | | | | | 201,851,794 | | | | 253,932,352 | |
| | | | | | | | | | | | | | | | | | | | |
End of period | | | $61,188,343 | | | | $46,657,501 | | | | | | | | $222,720,376 | | | | $201,851,794 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Capital transactions in shares: | | | | | | | | | | | | | | | | | | | | |
Sold | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 414,349 | | | | 680,555 | | | | | | | | 494,755 | | | | 1,827,566 | |
Common shares (Class S) | | | — | | | | — | | | | | | | | 32,805 | | | | 92,706 | |
Reinvested distributions | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 27,043 | | | | 83,820 | | | | | | | | 798,249 | | | | 1,675,670 | |
Common shares (Class S) | | | — | | | | — | | | | | | | | 126,956 | | | | 310,474 | |
Redeemed | | | | | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (173,169 | ) | | | (370,549 | ) | | | | | | | (1,420,216 | ) | | | (5,513,813 | ) |
Common shares (Class S) | | | — | | | | — | | | | | | | | (363,883 | ) | | | (995,697 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 268,223 | | | | 393,826 | | | | | | | | (331,334 | ) | | | (2,603,094 | ) |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
| | |
| | |
| 54 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sit Global Dividend Growth Fund | | | | Sit Large Cap Growth Fund | | | | Sit ESG Growth Fund |
| | | | | | | |
Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 | | | | Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 | | | | Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 |
| | | | | | | |
| | | $181,714 | | | | | $458,867 | | | | | | | | | | ($71,245 | ) | | | | $200,539 | | | | | | | | | | $15,746 | | | | | $48,643 | |
| | | | | | | |
| | | (535,696) | | | | | 134,732 | | | | | | | | | | 5,005,414 | | | | | 7,837,834 | | | | | | | | | | 59,552 | | | | | 52,787 | |
| | | | | | | |
| | | 7,423,138 | | | | | 942,590 | | | | | | | | | | 24,387,604 | | | | | 14,917,326 | | | | | | | | | | 1,162,017 | | | | | 285,159 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 7,069,156 | | | | | 1,536,189 | | | | | | | | | | 29,321,773 | | | | | 22,955,699 | | | | | | | | | | 1,237,315 | | | | | 386,589 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | (299,291) | | | | | (495,881 | ) | | | | | | | | | (7,944,944 | ) | | | | (10,751,684 | ) | | | | | | | | | (24,675 | ) | | | | (55,450 | ) |
| | | (24,713) | | | | | (45,123 | ) | | | | | | | | | — | | | | | — | | | | | | | | | | (17,325 | ) | | | | (44,523 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (324,004) | | | | | (541,004 | ) | | | | | | | | | (7,944,944 | ) | | | | (10,751,684 | ) | | | | | | | | | (42,000 | ) | | | | (99,973 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 1,632,581 | | | | | 2,566,271 | | | | | | | | | | 6,371,598 | | | | | 3,793,196 | | | | | | | | | | 337,381 | | | | | 53,788 | |
| | | 69,541 | | | | | 493,938 | | | | | | | | | | — | | | | | — | | | | | | | | | | 18,276 | | | | | 88,716 | |
| | | | | | | |
| | | 281,789 | | | | | 473,429 | | | | | | | | | | 7,789,099 | | | | | 10,576,386 | | | | | | | | | | 24,675 | | | | | 55,450 | |
| | | 24,713 | | | | | 44,849 | | | | | | | | | | — | | | | | — | | | | | | | | | | 17,325 | | | | | 44,523 | |
| | | | | | | |
| | | (2,003,894) | | | | | (3,345,936 | ) | | | | | | | | | (7,834,027 | ) | | | | (14,001,032 | ) | | | | | | | | | (220,362 | ) | | | | (168,614 | ) |
| | | (421,547) | | | | | (538,748 | ) | | | | | | | | | — | | | | | — | | | | | | | | | | (44,888 | ) | | | | (6,803 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (416,817) | | | | | (306,197 | ) | | | | | | | | | 6,326,670 | | | | | 368,550 | | | | | | | | | | 132,407 | | | | | 67,060 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 6,328,335 | | | | | 688,988 | | | | | | | | | | 27,703,499 | | | | | 12,572,565 | | | | | | | | | | 1,327,722 | | | | | 353,676 | |
| | | | | | | |
| | | 34,752,287 | | | | | 34,063,299 | | | | | | | | | | 129,154,005 | | | | | 116,581,440 | | | | | | | | | | 6,635,790 | | | | | 6,282,114 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $41,080,622 | | | | | $34,752,287 | | | | | | | | | | $156,857,504 | | | | | $129,154,005 | | | | | | | | | | $7,963,512 | | | | | $6,635,790 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 86,291 | | | | | 150,362 | | | | | | | | | | 118,337 | | | | | 90,022 | | | | | | | | | | 21,499 | | | | | 3,933 | |
| | | 3,782 | | | | | 32,537 | | | | | | | | | | — | | | | | — | | | | | | | | | | 1,154 | | | | | 6,554 | |
| | | | | | | |
| | | 15,797 | | | | | 29,095 | | | | | | | | | | 143,077 | | | | | 246,824 | | | | | | | | | | 1,528 | | | | | 3,936 | |
| | | 1,398 | | | | | 2,759 | | | | | | | | | | — | | | | | — | | | | | | | | | | 1,078 | | | | | 3,173 | |
| | | | | | | |
| | | (108,511) | | | | | (206,028 | ) | | | | | | | | | (148,919 | ) | | | | (334,238 | ) | | | | | | | | | (14,072 | ) | | | | (13,142 | ) |
| | | (22,911) | | | | | (32,495 | ) | | | | | | | | | — | | | | | — | | | | | | | | | | (3,063 | ) | | | | (491 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (24,154) | | | | | (23,770 | ) | | | | | | | | | 112,495 | | | | | 2,608 | | | | | | | | | | 8,124 | | | | | 3,963 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
| | | | | | | | | | | | | | | | |
| | | Sit Mid Cap Growth Fund | | Sit Small Cap
Dividend Growth Fund |
| | | Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | ($375,744 | ) | | | ($449,745 | ) | | | $94,781 | | | | $171,566 | |
Net realized gain (loss) on investments and foreign currency transactions | | | 10,495,069 | | | | 8,299,165 | | | | 188,950 | | | | (63,100 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions | | | 37,317,016 | | | | 5,783,828 | | | | 4,045,660 | | | | (650,584 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 47,436,341 | | | | 13,633,248 | | | | 4,329,391 | | | | (542,118 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Distributions from: | | | | | | | | | | | | | | | | |
Net investment income and net realized gains | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (8,583,537 | ) | | | (12,018,685 | ) | | | (101,665 | ) | | | (143,293 | ) |
Common shares (Class S) | | | — | | | | — | | | | (24,336 | ) | | | (37,709 | ) |
| | | | | | | | | | | | | | | | |
Total distributions | | | (8,583,537 | ) | | | (12,018,685 | ) | | | (126,001 | ) | | | (181,002 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Capital share transactions: | | | | | | | | | | | | | | | | |
Proceeds from shares sold | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 1,200,306 | | | | 1,783,445 | | | | 954,609 | | | | 1,690,858 | |
Common shares (Class S) | | | — | | | | — | | | | 94,904 | | | | 114,119 | |
Reinvested distributions | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 8,275,873 | | | | 11,531,885 | | | | 95,549 | | | | 135,470 | |
Common shares (Class S) | | | — | | | | — | | | | 23,008 | | | | 35,517 | |
Payments for shares redeemed | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (7,318,564 | ) | | | (11,284,411 | ) | | | (1,230,152 | ) | | | (2,069,396 | ) |
Common shares (Class S) | | | — | | | | — | | | | (178,320 | ) | | | (216,438 | ) |
| | | | | | | | | | | | | | | | |
Increase (decrease) in net assets from capital transactions | | | 2,157,615 | | | | 2,030,919 | | | | (240,402 | ) | | | (309,870 | ) |
| | | | | | | | | | | | | | | | |
Total increase (decrease) in net assets | | | 41,010,419 | | | | 3,645,482 | | | | 3,962,988 | | | | (1,032,990 | ) |
| | | | |
Net assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | 172,744,191 | | | | 169,098,709 | | | | 15,506,115 | | | | 16,539,105 | |
| | | | | | | | | | | | | | | | |
End of period | | | $213,754,610 | | | | $172,744,191 | | | | $19,469,103 | | | | $15,506,115 | |
| | | | | | | | | | | | | | | | |
| | | | |
Capital transactions in shares: | | | | | | | | | | | | | | | | |
Sold | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 54,492 | | | | 99,516 | | | | 71,804 | | | | 141,777 | |
Common shares (Class S) | | | — | | | | — | | | | 7,073 | | | | 9,990 | |
Reinvested distributions | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | 356,565 | | | | 632,577 | | | | 7,554 | | | | 11,483 | |
Common shares (Class S) | | | — | | | | — | | | | 1,818 | | | | 2,979 | |
Redeemed | | | | | | | | | | | | | | | | |
Common shares (Class I) | | | (345,853 | ) | | | (638,495 | ) | | | (93,913 | ) | | | (174,897 | ) |
Common shares (Class S) | | | — | | | | — | | | | (14,961 | ) | | | (21,280 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 65,204 | | | | 93,598 | | | | (20,625 | ) | | | (29,948 | ) |
| | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
| | |
| | |
| 56 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | | | | | | | | |
| Sit Small Cap Growth Fund | | | Sit International Growth Fund | | Sit Developing Markets Growth Fund | |
Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30,
2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | Year Ended
June 30,
2020 | | | Six Months Ended
December 31, 2020
(Unaudited) | | | Year Ended
June 30,
2020 | |
| | | | | |
| | ($307,947) | | | | ($502,943 | ) | | | ($33,781 | ) | | | $79,522 | | | | ($607 | ) | | | $162,064 | |
| | | | | |
| | 6,894,306 | | | | 2,423,438 | | | | (305,538 | ) | | | (344,236 | ) | | | 92,853 | | | | (26,021 | ) |
| | | | | |
| | 26,354,375 | | | | 3,290,428 | | | | 5,460,008 | | | | 761,010 | | | | 2,784,010 | | | | 55,100 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 32,940,734 | | | | 5,210,923 | | | | 5,120,689 | | | | 496,296 | | | | 2,876,256 | | | | 191,143 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | (4,398,753) | | | | (3,070,107 | ) | | | (61,407 | ) | | | (227,001 | ) | | | (34,798 | ) | | | (185,000 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (4,398,753) | | | | (3,070,107 | ) | | | (61,407 | ) | | | (227,001 | ) | | | (34,798 | ) | | | (185,000 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 1,910,080 | | | | 1,513,165 | | | | 1,342,942 | | | | 906,266 | | | | 953,353 | | | | 936,308 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | |
| | 4,280,437 | | | | 3,017,215 | | | | 60,436 | | | | 222,999 | | | | 34,052 | | | | 180,261 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | |
| | (3,166,488) | | | | (5,688,108 | ) | | | (875,743 | ) | | | (1,856,893 | ) | | | (587,409 | ) | | | (858,591 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 3,024,029 | | | | (1,157,728 | ) | | | 527,635 | | | | (727,628 | ) | | | 399,996 | | | | 257,978 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 31,566,010 | | | | 983,088 | | | | 5,586,917 | | | | (458,333 | ) | | | 3,241,454 | | | | 264,121 | |
| | | | | |
| | 100,612,703 | | | | 99,629,615 | | | | 23,004,559 | | | | 23,462,892 | | | | 10,259,789 | | | | 9,995,668 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | $132,178,713 | | | | $100,612,703 | | | | $28,591,476 | | | | $23,004,559 | | | | $13,501,243 | | | | $10,259,789 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | 28,222 | | | | 28,064 | | | | 67,257 | | | | 52,331 | | | | 48,942 | | | | 57,066 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | |
| | 59,649 | | | | 54,719 | | | | 2,881 | | | | 12,584 | | | | 1,656 | | | | 10,714 | |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | |
| | (49,990) | | | | (108,206 | ) | | | (45,295 | ) | | | (110,718 | ) | | | (32,877 | ) | | | (54,070 | ) |
| | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | |
| | 37,881 | | | | (25,423 | ) | | | 24,843 | | | | (45,803 | ) | | | 17,721 | | | | 13,710 | |
| | | | | | | | | | | | | | | | | | | | | | |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | |
| Sit Balanced Fund | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $26.37 | | | | $25.06 | | | | $23.76 | | | | $22.71 | | | | $20.40 | | | | $21.54 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.11 | | | | 0.25 | | | | 0.32 | | | | 0.25 | | | | 0.25 | | | | 0.26 | |
Net realized and unrealized gains | | | 3.96 | | | | 2.64 | | | | 1.52 | | | | 1.96 | | | | 2.29 | | | | 0.04 | |
| | | | |
| | | | | | |
Total from operations | | | 4.07 | | | | 2.89 | | | | 1.84 | | | | 2.21 | | | | 2.54 | | | | 0.30 | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.16) | | | | (0.27 | ) | | | (0.31 | ) | | | (0.27 | ) | | | (0.23 | ) | | | (0.45 | ) |
From net realized gains | | | (0.25) | | | | (1.31 | ) | | | (0.23 | ) | | | (0.89 | ) | | | — | | | | (0.99 | ) |
| | | | |
| | | | | | |
Total distributions | | | (0.41) | | | | (1.58 | ) | | | (0.54 | ) | | | (1.16 | ) | | | (0.23 | ) | | | (1.44 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $30.03 | | | | $26.37 | | | | $25.06 | | | | $23.76 | | | | $22.71 | | | | $20.40 | |
| | | | |
| | | | | | |
Total investment return 2 | | | 15.47% | | | | 11.91% | | | | 7.98% | | | | 9.84% | | | | 12.56% | | | | 1.47% | |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $61,188 | | | | $46,658 | | | | $34,465 | | | | $37,541 | | | | $25,242 | | | | $23,511 | |
| | | | | | |
Ratios: 3 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | 1.00% | | | | 1.00% | | | | 1.00% | | | | 1.00% | | | | 1.00% | | | �� | 1.00% | |
Net investment income | | | 0.80% | | | | 0.99% | | | | 1.33% | | | | 1.07% | | | | 1.18% | | | | 1.25% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 18.01%4 | | | | 58.63% | | | | 50.45% | | | | 50.49% | | | | 50.31% | | | | 54.46% | |
| 1 | The net investment income 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 (not annualized) and assumes reinvestment of distributions at net asset value. |
| 3 | Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| | |
| | |
| 58 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class I | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $13.48 | | | | $14.45 | | | | $16.69 | | | | $16.88 | | | | $15.82 | | | | $17.40 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.11 | | | | 0.22 | | | | 0.38 | | | | 0.26 | | | | 0.24 | | | | 0.26 | |
Net realized and unrealized gains | | | 2.65 | | | | 0.64 | | | | 0.55 | | | | 1.49 | | | | 2.09 | | | | 0.32 | |
| | | | |
| | | | | | |
Total from operations | | | 2.76 | | | | 0.86 | | | | 0.93 | | | | 1.75 | | | | 2.33 | | | | 0.58 | |
| | | | |
| | | | | | |
Redemption fees 2 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.17) | | | | (0.24 | ) | | | (0.40 | ) | | | (0.26 | ) | | | (0.23 | ) | | | (0.32 | ) |
From net realized gains | | | (0.86) | | | | (1.59 | ) | | | (2.77 | ) | | | (1.68 | ) | | | (1.04 | ) | | | (1.84 | ) |
| | | | |
| | | | | | |
Total distributions. | | | (1.03) | | | | (1.83 | ) | | | (3.17 | ) | | | (1.94 | ) | | | (1.27 | ) | | | (2.16 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $15.21 | | | | $13.48 | | | | $14.45 | | | | $16.69 | | | | $16.88 | | | | $15.82 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 20.66% | | | | 5.46% | | | | 8.37% | | | | 10.36% | | | | 15.41% | | | | 3.94% | |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $192,961 | | | | $172,746 | | | | $214,204 | | | | $918,584 | | | | $1,015,920 | | | | $942,244 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.00%5 | | | | 1.00%5 | | | | 1.00%5 | | | | 1.00%5 | | | | 1.00% | | | | 1.00% | |
Expenses (with waiver) | | | 0.70%5 | | | | 0.70%5 | | | | 0.70%5 | | | | 0.78%5 | | | | 1.00% | | | | 1.00% | |
Net investment income (without waiver) | | | 1.20% | | | | 1.30% | | | | 2.04% | | | | 1.31% | | | | 1.49% | | | | 1.64% | |
Net investment income (with waiver) | | | 1.50% | | | | 1.60% | | | | 2.34% | | | | 1.53% | | | | 1.49% | | | | 1.64% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 21.18%6 | | | | 68.43% | | | | 51.52% | | | | 68.38% | | | | 61.33% | | | | 75.94% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.00% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements. (Continued)
Sit Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class S | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $13.40 | | | | $14.37 | | | | $16.61 | | | | $16.81 | | | | $15.76 | | | | $17.34 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.09 | | | | 0.19 | | | | 0.32 | | | | 0.22 | | | | 0.20 | | | | 0.22 | |
Net realized and unrealized gains | | | 2.64 | | | | 0.63 | | | | 0.57 | | | | 1.47 | | | | 2.08 | | | | 0.32 | |
| | | | |
| | | | | | |
Total from operations | | | 2.73 | | | | 0.82 | | | | 0.89 | | | | 1.69 | | | | 2.28 | | | | 0.54 | |
| | | | |
| | | | | | |
Redemption fees | | | — | | | | — 2 | | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.14) | | | | (0.20 | ) | | | (0.36 | ) | | | (0.21 | ) | | | (0.19 | ) | | | (0.28 | ) |
From net realized gains | | | (0.86) | | | | (1.59 | ) | | | (2.77 | ) | | | (1.68 | ) | | | (1.04 | ) | | | (1.84 | ) |
| | | | |
| | | | | | |
Total distributions. | | | (1.00) | | | | (1.79 | ) | | | (3.13 | ) | | | (1.89 | ) | | | (1.23 | ) | | | (2.12 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $15.13 | | | | $13.40 | | | | $14.37 | | | | $16.61 | | | | $16.81 | | | | $15.76 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 20.56% | | | | 5.19% | | | | 8.12% | | | | 10.06% | | | | 15.11% | | | | 3.68% | |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $29,759 | | | | $29,106 | | | | $39,729 | | | | $51,331 | | | | $65,278 | | | | $67,620 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.25%5 | | | | 1.25%5 | | | | 1.25%5 | | | | 1.25%5 | | | | 1.25% | | | | 1.25% | |
Expenses (with waiver) | | | 0.95%5 | | | | 0.95%5 | | | | 0.95%5 | | | | 1.03%5 | | | | 1.25% | | | | 1.25% | |
Net investment income (without waiver) | | | 0.95% | | | | 1.05% | | | | 1.80% | | | | 1.06% | | | | 1.24% | | | | 1.39% | |
Net investment income (with waiver) | | | 1.25% | | | | 1.35% | | | | 2.10% | | | | 1.28% | | | | 1.24% | | | | 1.39% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 21.18%6 | | | | 68.43% | | | | 51.52% | | | | 68.38% | | | | 61.33% | | | | 75.94% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
| | |
| | |
| 60 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Global Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class I | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $16.87 | | | | $16.34 | | | | $15.24 | | | | $14.54 | | | | $13.19 | | | | $14.80 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.09 | | | | 0.22 | | | | 0.28 | | | | 0.27 | | | | 0.22 | | | | 0.21 | |
Net realized and unrealized gains (losses) | | | 3.37 | | | | 0.57 | | | | 1.10 | | | | 0.67 | | | | 1.34 | | | | (0.48 | ) |
| | | | |
| | | | | | |
Total from operations | | | 3.46 | | | | 0.79 | | | | 1.38 | | | | 0.94 | | | | 1.56 | | | | (0.27 | ) |
| | | | |
Redemption fees | | | — 2 | | | | — | 2 | | | — | 2 | | | — | | | | — | 2 | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.16) | | | | (0.26 | ) | | | (0.28 | ) | | | (0.24 | ) | | | (0.21 | ) | | | (0.34 | ) |
From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.00 | ) |
| | | | |
| | | | | | |
Total distributions. | | | (0.16) | | | | (0.26 | ) | | | (0.28 | ) | | | (0.24 | ) | | | (0.21 | ) | | | (1.34 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $20.17 | | | | $16.87 | | | | $16.34 | | | | $15.24 | | | | $14.54 | | | | $13.19 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 20.65% | | | | 4.93% | | | | 9.18% | | | | 6.46% | | | | 11.94% | | | | (1.67% | ) |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $37,380 | | | | $31,361 | | | | $30,823 | | | | $28,778 | | | | $25,623 | | | | $22,333 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.25%5 | | | | 1.25% | 5 | | | 1.25% | 5 | | | 1.25% | 5 | | | 1.25% | | | | 1.25% | |
Expenses (with waiver) | | | 1.00%5 | | | | 1.00% | 5 | | | 1.00% | 5 | | | 1.06% | 5 | | | 1.25% | | | | 1.25% | |
Net investment income (without waiver) | | | 0.73% | | | | 1.11% | | | | 1.53% | | | | 1.59% | | | | 1.63% | | | | 1.56% | |
Net investment income (with waiver) | | | 0.98% | | | | 1.36% | | | | 1.78% | | | | 1.78% | | | | 1.63% | | | | 1.56% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 6.98%6 | | | | 22.15% | | | | 15.07% | | | | 19.80% | | | | 32.04% | | | | 48.30% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements. (Continued)
Sit Global Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class S | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $16.85 | | | | $16.33 | | | | $15.22 | | | | $14.53 | | | | $13.18 | | | | $14.78 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.07 | | | | 0.18 | | | | 0.24 | | | | 0.23 | | | | 0.19 | | | | 0.18 | |
Net realized and unrealized gains (losses) | | | 3.38 | | | | 0.56 | | | | 1.11 | | | | 0.66 | | | | 1.33 | | | | (0.48 | ) |
| | | | |
| | | | | | |
Total from operations | | | 3.45 | | | | 0.74 | | | | 1.35 | | | | 0.89 | | | | 1.52 | | | | (0.30 | ) |
| | | | |
Redemption fees | | | — 2 | | | | — | 2 | | | — | | | | — | | | | — | | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.13) | | | | (0.22 | ) | | | (0.24 | ) | | | (0.20 | ) | | | (0.17 | ) | | | (0.30 | ) |
From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.00 | ) |
| | | | |
| | | | | | |
Total distributions. | | | (0.13) | | | | (0.22 | ) | | | (0.24 | ) | | | (0.20 | ) | | | (0.17 | ) | | | (1.30 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $20.17 | | | | $16.85 | | | | $16.33 | | | | $15.22 | | | | $14.53 | | | | $13.18 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 20.57% | | | | 4.60% | | | | 8.98% | | | | 6.13% | | | | 11.67% | | | | (1.89% | ) |
| | | | |
Net assets at end of period (000’s omitted) | | | $3,701 | | | | $3,391 | | | | $3,241 | | | | $3,246 | | | | $3,274 | | | | $2,861 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.50%5 | | | | 1.50% | 5 | | | 1.50% | 5 | | | 1.50% | 5 | | | 1.50% | | | | 1.50% | |
Expenses (with waiver) | | | 1.25%5 | | | | 1.25% | 5 | | | 1.25% | 5 | | | 1.31% | 5 | | | 1.50% | | | | 1.50% | |
Net investment income (without waiver) | | | 0.49% | | | | 0.87% | | | | 1.28% | | | | 1.33% | | | | 1.38% | | | | 1.31% | |
Net investment income (with waiver) | | | 0.74% | | | | 1.12% | | | | 1.53% | | | | 1.52% | | | | 1.38% | | | | 1.31% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 6.98%6 | | | | 22.15% | | | | 15.07% | | | | 19.80% | | | | 32.04% | | | | 48.30% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
| | |
| | |
| 62 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Large Cap Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $47.07 | | | | $42.53 | | | | $42.40 | | | | $40.56 | | | | $36.02 | | | | $47.21 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) 1 | | | (0.03) | | | | 0.07 | | | | 0.16 | | | | 0.13 | | | | 0.21 | | | | 0.18 | |
Net realized and unrealized gains (losses) | | | 10.79 | | | | 8.60 | | | | 3.61 | | | | 6.55 | | | | 7.07 | | | | (0.42 | ) |
| | | | |
Total from operations | | | 10.76 | | | | 8.67 | | | | 3.77 | | | | 6.68 | | | | 7.28 | | | | (0.24 | ) |
| | | | |
Redemption fees 2 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.02) | | | | (0.12 | ) | | | (0.15 | ) | | | (0.17 | ) | | | (0.19 | ) | | | (1.44 | ) |
From net realized gains | | | (2.90) | | | | (4.01 | ) | | | (3.49 | ) | | | (4.67 | ) | | | (2.55 | ) | | | (9.51 | ) |
| | | | |
Total distributions | | | (2.92) | | | | (4.13 | ) | | | (3.64 | ) | | | (4.84 | ) | | | (2.74 | ) | | | (10.95 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $54.91 | | | | $47.07 | | | | $42.53 | | | | $42.40 | | | | $40.56 | | | | $36.02 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 22.92% | | | | 21.34% | | | | 10.54% | | | | 16.93% | | | | 21.18% | | | | (0.89% | ) |
| | | | |
Net assets at end of period (000’s omitted) | | | $156,858 | | | | $129,154 | | | | $116,581 | | | | $118,792 | | | | $113,620 | | | | $117,459 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | 1.00% | | | | 1.00% | | | | 1.00% | | | | 1.00% | | | | 1.00% | | | | 1.00% | |
Net investment income (loss) | | | (0.10%) | | | | 0.17% | | | | 0.39% | | | | 0.30% | | | | 0.54% | | | | 0.44% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 6.51%5 | | | | 14.53% | | | | 16.02% | | | | 15.20% | | | | 17.69% | | | | 20.05% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit ESG Growth Fund
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | |
| Class I | | December 31, 2020 | | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | (Unaudited) | | | June 30, 2020 | | | June 30, 2019 | | | June 30, 2018 | | | June 30, 2017 * | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $13.85 | | | | $13.21 | | | | $12.37 | | | | $11.29 | | | | $10.00 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.04 | | | | 0.12 | | | | 0.17 | | | | 0.16 | | | | 0.11 | |
Net realized and unrealized gains | | | 2.56 | | | | 0.74 | | | | 0.83 | | | | 1.03 | | | | 1.20 | |
| | | | |
Total from operations | | | 2.60 | | | | 0.86 | | | | 1.00 | | | | 1.19 | | | | 1.31 | |
| | | | |
Redemption fees | | | — 2 | | | | — | | | | — | | | | — | | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.10) | | | | (0.17) | | | | (0.16) | | | | (0.11) | | | | (0.02) | |
From net realized gains | | | — | | | | (0.05) | | | | — | | | | — | | | | — | |
| | | | |
Total distributions. | | | (0.10) | | | | (0.22) | | | | (0.16) | | | | (0.11) | | | | (0.02) | |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | |
End of period | | | $16.35 | | | | $13.85 | | | | $13.21 | | | | $12.37 | | | | $11.29 | |
| | | | |
Total investment return 2 | | | 18.75% | | | | 6.47% | | | | 8.30% | | | | 10.57% | | | | 13.13% | |
| | | | |
Net assets at end of period (000’s omitted) | | | $4,250 | | | | $3,477 | | | | $3,387 | | | | $3,041 | | | | $2,349 | |
| | | | | |
Ratios: 3 | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.25%4 | | | | 1.25%4 | | | | 1.25%4 | | | | 1.25%4 | | | | 1.25% | |
Expenses (with waiver) | | | 1.00%4 | | | | 1.00%4 | | | | 1.00%4 | | | | 1.06%4 | | | | 1.25% | |
Net investment income (without waiver) | | | 0.30% | | | | 0.63% | | | | 1.14% | | | | 1.10% | | | | 1.01% | |
Net investment income (with waiver) | | | 0.55% | | | | 0.88% | | | | 1.38% | | | | 1.29% | | | | 1.01% | |
| | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 5.75%5 | | | | 25.28% | | | | 9.26% | | | | 14.97% | | | | 27.60% | |
| * | The Fund commenced investment operations on June 30, 2016. |
| 1 | The net investment income 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 (not annualized) and assumes reinvestment of distributions at net asset value. |
| 3 | Ratios are annualized for periods less than one year. 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 | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
| | |
| | |
| 64 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements. (Continued)
Sit ESG Growth Fund
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | |
| Class S | | December 31, 2020 | | | Year Ended | | | Year Ended | | | Year Ended | | | Year Ended | |
| | | (Unaudited) | | | June 30, 2020 | | | June 30, 2019 | | | June 30, 2018 | | | June 30, 2017 * | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $13.78 | | | | $13.16 | | | | $12.34 | | | | $11.28 | | | | $10.00 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.02 | | | | 0.08 | | | | 0.14 | | | | 0.13 | | | | 0.08 | |
Net realized and unrealized gains | | | 2.54 | | | | 0.74 | | | | 0.83 | | | | 1.03 | | | | 1.21 | |
| | | | |
Total from operations | | | 2.56 | | | | 0.82 | | | | 0.97 | | | | 1.16 | | | | 1.29 | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.08) | | | | (0.15) | | | | (0.15) | | | | (0.10) | | | | (0.01) | |
From net realized gains | | | — | | | | (0.05) | | | | — | | | | — | | | | — | |
| | | | |
Total distributions | | | (0.08) | | | | (0.20) | | | | (0.15) | | | | (0.10) | | | | (0.01) | |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | |
End of period | | | $16.26 | | | | $13.78 | | | | $13.16 | | | | $12.34 | | | | $11.28 | |
| | | | |
Total investment return 2 | | | 18.56% | | | | 6.22% | | | | 8.01% | | | | 10.37% | | | | 12.79% | |
| | | | |
Net assets at end of period (000’s omitted) | | | $3,713 | | | | $3,158 | | | | $2,895 | | | | $2,660 | | | | $2,321 | |
| | | | | |
Ratios: 3 | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.50%4 | | | | 1.50%4 | | | | 1.50%4 | | | | 1.50%4 | | | | 1.50% | |
Expenses (with waiver) | | | 1.25%4 | | | | 1.25%4 | | | | 1.25%4 | | | | 1.31%4 | | | | 1.50% | |
Net investment income (without waiver) | | | 0.05% | | | | 0.38% | | | | 0.89% | | | | 0.84% | | | | 0.76% | |
Net investment income (with waiver) | | | 0.30% | | | | 0.63% | | | | 1.14% | | | | 1.03% | | | | 0.76% | |
| | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 5.75%5 | | | | 25.28% | | | | 9.26% | | | | 14.97% | | | | 27.60% | |
| * | The Fund commenced investment operations on June 30, 2016. |
| 1 | The net investment income 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 (not annualized) and assumes reinvestment of distributions at net asset value. |
| 3 | Ratios are annualized for periods less than one year. 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 | Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Mid Cap Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $19.05 | | | | $18.84 | | | | $18.96 | | | | $18.06 | | | | $15.36 | | | | $20.22 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss 1 | | | (0.04) | | | | (0.05 | ) | | | (0.03 | ) | | | (0.03 | ) | | | — | 2 | | | (0.04 | ) |
Net realized and unrealized gains (losses) | | | 5.38 | | | | 1.64 | | | | 1.79 | | | | 1.71 | | | | 2.86 | | | | (1.92 | ) |
| | | | |
| | | | | | |
Total from operations | | | 5.34 | | | | 1.59 | | | | 1.76 | | | | 1.68 | | | | 2.86 | | | | (1.96 | ) |
| | | | |
| | | | | | |
Redemption fees 2 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | — | | | | — | | | | — | | | | — | 2 | | | — | | | | — | |
From net realized gains | | | (0.98) | | | | (1.38 | ) | | | (1.88 | ) | | | (0.78 | ) | | | (0.16 | ) | | | (2.90 | ) |
| | | | |
| | | | | | |
Total distributions | | | (0.98) | | | | (1.38 | ) | | | (1.88 | ) | | | (0.78 | ) | | | (0.16 | ) | | | (2.90 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $23.41 | | | | $19.05 | | | | $18.84 | | | | $18.96 | | | | $18.06 | | | | $15.36 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 28.05% | | | | 8.75% | | | | 11.76% | | | | 9.42% | | | | 18.74% | | | | (9.97% | ) |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $213,755 | | | | $172,744 | | | | $169,099 | | | | $158,501 | | | | $156,305 | | | | $139,523 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | 1.25% | | | | 1.25% | | | | 1.25% | | | | 1.25% | | | | 1.25% | | | | 1.25% | |
Net investment loss | | | (0.39%) | | | | (0.27% | ) | | | (0.16% | ) | | | (0.17% | ) | | | (0.01% | ) | | | (0.23% | ) |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 9.65%5 | | | | 25.58% | | | | 27.70% | | | | 28.89% | | | | 23.02% | | | | 21.57% | |
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| | |
| | |
| 66 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Small Cap Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class I | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $11.39 | | | | $11.89 | | | | $12.27 | | | | $11.47 | | | | $10.00 | | | | $9.96 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.07 | | | | 0.13 | | | | 0.15 | | | | 0.11 | | | | 0.12 | | | | 0.14 | |
Net realized and unrealized gains (losses) | | | 3.16 | | | | (0.49 | ) | | | (0.25 | ) | | | 0.80 | | | | 1.46 | | | | 0.02 | |
| | | | |
| | | | | | |
Total from operations | | | 3.23 | | | | (0.36 | ) | | | (0.10 | ) | | | 0.91 | | | | 1.58 | | | | 0.16 | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.10) | | | | (0.14 | ) | | | (0.15 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.12 | ) |
From net realized gains | | | — | | | | — | | | | (0.13 | ) | | | — | | | | — | | | | — | 2 |
| | | | |
| | | | | | |
Total distributions. | | | (0.10) | | | | (0.14 | ) | | | (0.28 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.12 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $14.52 | | | | $11.39 | | | | $11.89 | | | | $12.27 | | | | $11.47 | | | | $10.00 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 28.48% | | | | (3.05% | ) | | | (0.54% | ) | | | 8.00% | | | | 15.84% | | | | 1.71% | |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $14,813 | | | | $11,786 | | | | $12,559 | | | | $14,597 | | | | $12,716 | | | | $5,777 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.25%5 | | | | 1.25%5 | | | | 1.25%5 | | | | 1.25%5 | | | | 1.25% | | | | 1.25% | |
Expenses (with waiver) | | | 1.00%5 | | | | 1.00%5 | | | | 1.00%5 | | | | 1.06%5 | | | | 1.25% | | | | 1.25% | |
Net investment income (without waiver) | | | 0.91% | | | | 0.90% | | | | 1.07% | | | | 0.75% | | | | 1.06% | | | | 1.46% | |
Net investment income (with waiver) | | | 1.16% | | | | 1.15% | | | | 1.32% | | | | 0.94% | | | | 1.06% | | | | 1.46% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 14.69%6 | | | | 27.58% | | | | 24.17% | | | | 29.74% | | | | 19.57% | | | | 26.43% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements. (Continued)
Sit Small Cap Dividend Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| Class S | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $11.38 | | | | $11.88 | | | | $12.26 | | | | $11.46 | | | | $10.00 | | | | $9.96 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income 1 | | | 0.06 | | | | 0.10 | | | | 0.12 | | | | 0.08 | | | | 0.09 | | | | 0.11 | |
Net realized and unrealized gains (losses) | | | 3.16 | | | | (0.49 | ) | | | (0.25 | ) | | | 0.80 | | | | 1.45 | | | | 0.03 | |
| | | | |
| | | | | | |
Total from operations | | | 3.22 | | | | (0.39 | ) | | | (0.13 | ) | | | 0.88 | | | | 1.54 | | | | 0.14 | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.08) | | | | (0.11 | ) | | | (0.12 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.10 | ) |
From net realized gains | | | — | | | | — | | | | (0.13 | ) | | | — | | | | — | | | | — | 2 |
| | | | |
| | | | | | |
Total distributions. | | | (0.08) | | | | (0.11 | ) | | | (0.25 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.10 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $14.52 | | | | $11.38 | | | | $11.88 | | | | $12.26 | | | | $11.46 | | | | $10.00 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 28.36% | | | | (3.30% | ) | | | (0.80% | ) | | | 7.74% | | | | 15.46% | | | | 1.46% | |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $4,656 | | | | $3,720 | | | | $3,981 | | | | $3,882 | | | | $3,461 | | | | $2,587 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 1.50%5 | | | | 1.50%5 | | | | 1.50%5 | | | | 1.50%5 | | | | 1.50% | | | | 1.50% | |
Expenses (with waiver) | | | 1.25%5 | | | | 1.25%5 | | | | 1.25%5 | | | | 1.31%5 | | | | 1.50% | | | | 1.50% | |
Net investment income (without waiver) | | | 0.66% | | | | 0.64% | | | | 0.82% | | | | 0.51% | | | | 0.81% | | | | 1.21% | |
Net investment income (with waiver) | | | 0.91% | | | | 0.89% | | | | 1.07% | | | | 0.70% | | | | 0.81% | | | | 1.21% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 14.69%6 | | | | 27.58% | | | | 24.17% | | | | 29.74% | | | | 19.57% | | | | 26.43% | |
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
| | |
| | |
| 68 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Small Cap Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $56.81 | | | | $55.46 | | | | $57.18 | | | | $54.18 | | | | $45.59 | | | | $60.10 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment loss 1 | | | (0.18) | | | | (0.28 | ) | | | (0.25 | ) | | | (0.29 | ) | | | (0.24 | ) | | | (0.33 | ) |
Net realized and unrealized gains (losses) | | | 18.95 | | | | 3.38 | | | | 2.88 | | | | 7.01 | | | | 8.91 | | | | (8.97 | ) |
| | | | |
Total from operations | | | 18.77 | | | | 3.10 | | | | 2.63 | | | | 6.72 | | | | 8.67 | | | | (9.30 | ) |
| | | | |
Redemption fees | | | — | | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 | | | — | 2 |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net realized gains | | | (2.51) | | | | (1.75 | ) | | | (4.35 | ) | | | (3.72 | ) | | | (0.08 | ) | | | (5.21 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $73.07 | | | | $56.81 | | | | $55.46 | | | | $57.18 | | | | $54.18 | | | | $45.59 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 33.13% | | | | 5.68% | | | | 6.45% | | | | 12.68% | | | | 19.06% | | | | (16.00% | ) |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $132,179 | | | | $100,613 | | | | $99,630 | | | | $100,038 | | | | $90,817 | | | | $81,209 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | |
Net investment loss | | | (0.54%) | | | | (0.53% | ) | | | (0.47% | ) | | | (0.51% | ) | | | (0.47% | ) | | | (0.65% | ) |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 14.14%5 | | | | 25.74% | | | | 26.34% | | | | 29.01% | | | | 29.08% | | | | 27.37% | |
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit International Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $17.38 | | | | $17.13 | | | | $16.75 | | | | $16.23 | | | | $14.48 | | | | $16.92 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) 1 | | | (0.03) | | | | 0.06 | | | | 0.16 | | | | 0.19 | | | | 0.14 | | | | 0.12 | |
Net realized and unrealized gains (losses) | | | 3.90 | | | | 0.36 | | | | 0.40 | | | | 0.47 | | | | 1.68 | | | | (1.47 | ) |
| | | | |
| | | | | | |
Total from operations | | | 3.87 | | | | 0.42 | | | | 0.56 | | | | 0.66 | | | | 1.82 | | | | (1.35 | ) |
| | | | |
| | | | | | |
Redemption fees | | | — | | | | — | 2 | | | — | | | | — | 2 | | | — | 2 | | | — | |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.05) | | | | (0.17 | ) | | | (0.18 | ) | | | (0.14 | ) | | | (0.07 | ) | | | (0.09 | ) |
From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.00 | ) |
| | | | |
| | | | | | |
Total distributions | | | (0.05) | | | | (0.17 | ) | | | (0.18 | ) | | | (0.14 | ) | | | (0.07 | ) | | | (1.09 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $21.20 | | | | $17.38 | | | | $17.13 | | | | $16.75 | | | | $16.23 | | | | $14.48 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 22.25% | | | | 2.43% | | | | 3.55% | | | | 4.06% | | | | 12.64% | | | | (8.19% | ) |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $28,591 | | | | $23,005 | | | | $23,463 | | | | $23,875 | | | | $22,618 | | | | $20,440 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | | | | 1.50% | |
Net investment income (loss) | | | (0.26%) | | | | 0.35% | | | | 0.97% | | | | 1.11% | | | | 0.97% | | | | 0.76% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 5.03%5 | | | | 13.38% | | | | 27.38% | | | | 16.35% | | | | 39.23% | | | | 37.94% | |
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
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| 70 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
FINANCIAL HIGHLIGHTS
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Developing Markets Growth Fund
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Six Months Ended | | | | | | | | | | | | | | | | |
| | | December 31, 2020 | | | | | | Years Ended June 30, | | | | |
| | | (Unaudited) | | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |
| |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | $16.28 | | | | $16.21 | | | | $17.25 | | | | $15.23 | | | | $12.26 | | | | $14.77 | |
| | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) 1 | | | — 2 | | | | 0.26 | | | | 0.10 | | | | 0.03 | | | | (0.02 | ) | | | 0.04 | |
Net realized and unrealized gains (losses) | | | 4.61 | | | | 0.11 | | | | (0.90 | ) | | | 2.24 | | | | 3.02 | | | | (2.18 | ) |
| | | | |
| | | | | | |
Total from operations | | | 4.61 | | | | 0.37 | | | | (0.80 | ) | | | 2.27 | | | | 3.00 | | | | (2.14 | ) |
| | | | |
| | | | | | |
Redemption fees | | | — | | | | — | 2 | | | — | | | | — | 2 | | | — | | | | — | 2 |
| | | | |
Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.02) | | | | (0.30 | ) | | | (0.08 | ) | | | — | | | | (0.03 | ) | | | (0.02 | ) |
From net realized gains | | | (0.04) | | | | — | | | | (0.16 | ) | | | (0.25 | ) | | | — | | | | (0.35 | ) |
| | | | |
| | | | | | |
Total distributions | | | (0.06) | | | | (0.30 | ) | | | (0.24 | ) | | | (0.25 | ) | | | (0.03 | ) | | | (0.37 | ) |
| | | | |
Net Asset Value: | | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | | $20.83 | | | | $16.28 | | | | $16.21 | | | | $17.25 | | | | $15.23 | | | | $12.26 | |
| | | | |
| | | | | | |
Total investment return 3 | | | 28.28% | | | | 2.20% | | | | (4.43% | ) | | | 14.94% | | | | 24.56% | | | | (14.42% | ) |
| | | | |
| | | | | | |
Net assets at end of period (000’s omitted) | | | $13,501 | | | | $10,260 | | | | $9,996 | | | | $11,027 | | | | $9,561 | | | | $7,297 | |
| | | | | | |
Ratios: 4 | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses (without waiver) | | | 2.00%5 | | | | 2.00%5 | | | | 2.00%5 | | | | 2.00%5 | | | | 2.00% | | | | 2.00% | |
Expenses (with waiver) | | | 1.40%5 | | | | 1.40%5 | | | | 1.40%5 | | | | 1.54%5 | | | | 2.00% | | | | 2.00% | |
Net investment income (loss) (without waiver) | | | (0.61%) | | | | 1.05% | | | | 0.03% | | | | (0.26% | ) | | | (0.18% | ) | | | 0.31% | |
Net investment income (loss) (with waiver) | | | (0.01%) | | | | 1.65% | | | | 0.63% | | | | 0.20% | | | | (0.18% | ) | | | 0.31% | |
| | | | | | |
Portfolio turnover rate (excluding short-term securities) | | | 4.14%6 | | | | 4.15% | | | | 10.28% | | | | 30.30% | | | | 19.67% | | | | 28.14% | |
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | Amount represents less than $0.01 per share. |
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. |
| 4 | Ratios are annualized for periods less than one year. 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. |
| 5 | Total Fund expenses are limited to 2.00% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund. |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended December 31, 2020
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 Balanced, Sit Dividend Growth, Sit Global Dividend Growth, Sit ESG Growth, Sit Small Cap Dividend Growth, Sit Small Cap Growth, Sit International Growth, and Sit Developing Markets Growth are series funds of Sit Mutual Funds, Inc.
This report covers the equity funds of the Sit Mutual Funds (the Funds). Each fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows:
| | |
| Fund | | Investment Objective |
| |
| Balanced | | Long-term growth consistent with the preservation of principal and to provide regular income. |
| Dividend Growth | | Provide current income that exceeds the dividend yield of the S&P 500® Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Global Dividend Growth | | Provide current income that exceeds the dividend yield of the MSCI World Index that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Large Cap Growth | | Maximize long-term capital appreciation. |
| ESG Growth | | Maximize long-term capital appreciation. |
| Mid Cap Growth | | Maximize long-term capital appreciation. |
| Small Cap Dividend Growth | | Provide current income that exceeds the yield of the Russell 2000® Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Small Cap Growth | | Maximize long-term capital appreciation. |
| International Growth | | Maximize long-term growth. |
| Developing Markets Growth | | Maximize long-term capital appreciation. |
The Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap 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.
| (2) | Significant Accounting Policies |
The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”).
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. Equity 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 or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Consistent with the Funds’ valuation policies and procedures, debt securities maturing in more than 60 days are priced by an independent pricing service. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality, and prepayment speeds as applicable. When market quotations are not readily available, or when the Adviser 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. The procedures consider, among
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| 72 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. Debt securities of sufficient credit quality maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value.
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 income is recorded on an accrual basis, including level-yield amortization of long-term bond premium and discount using the effective yield method.
Fair Value Measurements
The inputs and valuation techniques used to measure fair value of the Funds’ investments are summarized into three levels as described in the hierarchy below:
• Level 1 – quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.
• Level 2 – debt securities are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, U.S. government and government agency obligations, and municipal securities the pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. For asset-backed securities and mortgage-backed securities, the pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. For foreign equities, the pricing services adjust closing prices by applying a systematic process for events occurring after the close of the foreign exchange by utilizing such inputs as Depositary Receipts, quoted prices for similar securities, exchange rates, and certain indexes. All of these inputs are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.
• Level 3 – significant unobservable inputs, including the Adviser’s own assumptions in determining the fair value of investments.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A summary of the levels for the Funds’ investments as of December 31, 2020 is included with the Funds’ schedule of investments.
Foreign Currency Translations and Forward Foreign Currency Contracts
The fair value of securities and other assets and liabilities denominated in foreign currencies for Global Dividend Growth, ESG Growth, International Growth and Developing Markets Growth Funds are translated daily into U.S. dollars at the closing rate of exchange (approximately 4:00 p.m. Eastern Time). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses.
The Global Dividend Growth, ESG Growth, International Growth and Developing Markets Growth Funds may enter into forward foreign currency exchange contracts generally for operational purposes, but the Adviser may occasionally utilize contracts to protect against adverse exchange rate fluctuation. Any gains (losses) generated by these contracts are disclosed separately on the statement of operations. 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.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended December 31, 2020 (Continued)
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. 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. Also, the Funds may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain for income tax purposes.
Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of December 31, 2020, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue until such time as the applicable statute of limitations for audit has expired. For example, U.S. tax returns are generally subject to audit for three years from the date they are filed.
At December 31, 2020, the gross unrealized appreciation (depreciation) on investments and cost of securities on a tax basis for federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Unrealized Appreciation | | Unrealized Depreciation | | Net Unrealized Appreciation (Depreciation) | | Cost of Securities on a Tax Basis |
Balanced | | | | $16,924,668 | | | | | ($118,275 | ) | | | | $16,806,393 | | | | | $44,195,636 | |
Dividend Growth | | | | 63,089,258 | | | | | (399,141 | ) | | | | 62,690,117 | | | | | 159,452,575 | |
Global Dividend Growth | | | | 16,531,758 | | | | | (87,330 | ) | | | | 16,444,428 | | | | | 24,616,756 | |
Large Cap Growth | | | | 96,337,604 | | | | | (268,900 | ) | | | | 96,068,704 | | | | | 61,174,723 | |
ESG Growth | | | | 2,923,106 | | | | | (7,973 | ) | | | | 2,915,133 | | | | | 5,040,922 | |
Mid Cap Growth | | | | 115,461,518 | | | | | (118,138 | ) | | | | 115,343,380 | | | | | 98,737,913 | |
Small Cap Dividend Growth | | | | 5,977,568 | | | | | (208,397 | ) | | | | 5,769,171 | | | | | 13,735,807 | |
Small Cap Growth | | | | 66,914,721 | | | | | (297,138 | ) | | | | 66,617,583 | | | | | 65,679,186 | |
International Growth | | | | 11,106,613 | | | | | (240,225 | ) | | | | 10,866,388 | | | | | 17,699,409 | |
Developing Markets Growth | | | | 5,967,780 | | | | | (563,799 | ) | | | | 5,403,981 | | | | | 8,090,069 | |
Net investment income and net realized gains differ for financial statement and tax purposes because of corporate actions on shares held and/or 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, 2020 and 2019 were as follows:
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| 74 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | | | | | | | | | | | | | | | | | | | |
| Year Ended June 30, 2020: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Ordinary Income | | | | | | Long Term Capital Gain | | | | | | Total | |
Balanced | | | $486,523 | | | | | | | | $1,649,782 | | | | | | | | $2,136,305 | |
Dividend Growth (Class I) | | | 4,432,308 | | | | | | | | 20,913,570 | | | | | | | | 25,345,878 | |
Dividend Growth (Class S) | | | 695,533 | | | | | | | | 3,711,611 | | | | | | | | 4,407,144 | |
Global Dividend Growth (Class I) | | | 495,881 | | | | | | | | — | | | | | | | | 495,881 | |
Global Dividend Growth (Class S) | | | 45,123 | | | | | | | | — | | | | | | | | 45,123 | |
Large Cap Growth | | | 313,002 | | | | | | | | 10,438,682 | | | | | | | | 10,751,684 | |
ESG Growth (Class I) | | | 43,224 | | | | | | | | 12,226 | | | | | | | | 55,450 | |
ESG Growth (Class S) | | | 33,888 | | | | | | | | 10,635 | | | | | | | | 44,523 | |
Mid Cap Growth | | | — | | | | | | | | 12,018,685 | | | | | | | | 12,018,685 | |
Small Cap Dividend Growth (Class I) | | | 143,293 | | | | | | | | — | | | | | | | | 143,293 | |
Small Cap Dividend Growth (Class S) | | | 37,709 | | | | | | | | — | | | | | | | | 37,709 | |
Small Cap Growth | | | — | | | | | | | | 3,070,107 | | | | | | | | 3,070,107 | |
International Growth | | | 227,001 | | | | | | | | — | | | | | | | | 227,001 | |
Developing Markets Growth | | | 185,000 | | | | | | | | — | | | | | | | | 185,000 | |
| | | | | |
Year Ended June 30, 2019: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Ordinary Income | | | | | | Long Term Capital Gain | | | | | | Total | |
Balanced | | | $459,001 | | | | | | | | $342,301 | | | | | | | | $801,302 | |
Dividend Growth (Class I) | | | 17,847,831 | | | | | | | | 86,972,912 | | | | | | | | 104,820,743 | |
Dividend Growth (Class S) | | | 1,193,973 | | | | | | | | 7,639,936 | | | | | | | | 8,833,909 | |
Global Dividend Growth (Class I) | | | 521,860 | | | | | | | | — | | | | | | | | 521,860 | |
Global Dividend Growth (Class S) | | | 49,144 | | | | | | | | — | | | | | | | | 49,144 | |
Large Cap Growth | | | 456,987 | | | | | | | | 9,477,676 | | | | | | | | 9,934,663 | |
ESG Growth (Class I) | | | 40,551 | | | | | | | | — | | | | | | | | 40,551 | |
ESG Growth (Class S) | | | 31,449 | | | | | | | | — | | | | | | | | 31,449 | |
Mid Cap Growth | | | 1,152,232 | | | | | | | | 14,273,917 | | | | | | | | 15,426,149 | |
Small Cap Dividend Growth (Class I) | | | 169,480 | | | | | | | | 147,220 | | | | | | | | 316,700 | |
Small Cap Dividend Growth (Class S) | | | 38,521 | | | | | | | | 42,395 | | | | | | | | 80,916 | |
Small Cap Growth | | | — | | | | | | | | 7,455,033 | | | | | | | | 7,455,033 | |
International Growth | | | 245,338 | | | | | | | | — | | | | | | | | 245,338 | |
Developing Markets Growth | | | 49,252 | | | | | | | | 102,896 | | | | | | | | 152,148 | |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended December 31, 2020 (Continued)
As of June 30, 2020, the components of distributable earnings on a tax basis were as follows:
| | | | | | | | | | | | | | | | |
| | | Undistributed Ordinary Income | | | Undistributed Long-Term Capital Gains | | | Accumulated Capital and Other Losses | | | Unrealized Appreciation (Depreciation) |
Balanced | | | $183,595 | | | | $381,405 | | | | — | | | | $9,662,762 | |
Dividend Growth | | | 821,481 | | | | 12,122,888 | | | | ($6,693,354 | ) | | | 30,434,251 | |
Global Dividend Growth | | | 139,947 | | | | — | | | | (1,047,906 | ) | | | 9,018,289 | |
Large Cap Growth | | | 63,675 | | | | 4,230,801 | | | | — | | | | 71,680,331 | |
ESG Growth | | | 21,980 | | | | — | | | | (96,362 | ) | | | 1,753,148 | |
Mid Cap Growth | | | — | | | | 4,894,109 | | | | (260,780 | ) | | | 77,717,546 | |
Small Cap Dividend Growth | | | 37,627 | | | | — | | | | (253,454 | ) | | | 1,726,092 | |
Small Cap Growth | | | — | | | | 702,416 | | | | (733,699 | ) | | | 40,214,033 | |
International Growth | | | 61,406 | | | | — | | | | (1,422,363 | ) | | | 5,386,080 | |
Developing Markets Growth | | | 10,868 | | | | — | | | | (31,404 | ) | | | 2,608,634 | |
Net capital loss carryovers and late year losses, if any, as of June 30, 2020, are available to offset future realized capital gains and thereby reduce future capital gains distributions. The Funds’ are permitted to carry forward capital losses for an unlimited period. Capital losses that are carried forward retain their character as either short-term or long-term capital losses. The net capital loss carryovers and the late year losses deferred as of June 30, 2020, were as follows:
| | | | | | | | | | | | | | | | | | |
| | | Unlimited Period of Net | | | Late Year | | | |
| | | Capital Loss Carryover | | | Losses Deferred | | | |
| | | Short-Term | | | Long-Term | | | Ordinary | | | Capital | | |
Dividend Growth | | | — | | | | — | | | | — | | | | $6,693,354 | | | |
Global Dividend Growth | | | $1,047,906 | | | | — | | | | — | | | | — | | | |
ESG Growth | | | — | | | | — | | | | — | | | | 96,362 | | | |
Mid Cap Growth | | | — | | | | — | | | | $260,780 | | | | — | | | |
Small Cap Dividend Growth | | | 101,296 | | | | $152,158 | | | | — | | | | — | | | |
Small Cap Growth | | | — | | | | — | | | | 286,404 | | | | 447,295 | | | |
International Growth | | | 1,086,655 | | | | 335,708 | | | | — | | | | — | | | |
Developing Markets Growth | | | 31,404 | | | | — | | | | — | | | | — | | | |
For the year ended June 30, 2020, the Funds’ utilized capital losses and expired capital losses as follows:
| | | | | | | | | | |
| | | Utilized | | | Expired | | | |
Global Dividend Growth | | | $133,881 | | | — | | | | |
ESG Growth | | | 126,311 | | | — | | | | |
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, Global Dividend Growth and Small Cap Dividend Growth Funds and declared and paid annually for Developing Markets Growth, Small Cap Growth, International Growth, Mid Cap Growth, Large Cap Growth and ESG Growth Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds.
Concentration of Investments
The Developing Markets Growth Fund may concentrate investments in countries with limited or developing capital markets which may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences
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| 76 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund’s investments and the income it generates, as well as the Fund’s ability to repatriate such amounts.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results for the respective periods. Actual results could differ from those estimates.
Guarantees and Indemnifications
Under each Fund’s organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to each Fund. In addition, certain of each Fund’s contracts with its service providers contain general indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against each Fund cannot be determined and each Fund has no historical basis for predicting the likelihood of any such claims.
| (3) | Investment Security Transactions |
The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the six months ended December 31, 2020, were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Purchases | | Proceeds |
| | | | | |
| | | U.S. Government | | Other | | U.S. Government | | Other |
| | | | | |
Balanced | | | | $3,954,013 | | | | | $12,943,811 | | | | | $1,876,147 | | | | | $7,349,854 | |
Dividend Growth | | | | — | | | | | 44,441,682 | | | | | — | | | | | 61,736,884 | |
Global Dividend Growth | | | | — | | | | | 2,561,756 | | | | | — | | | | | 2,823,307 | |
Large Cap Growth | | | | — | | | | | 9,224,751 | | | | | — | | | | | 10,733,064 | |
ESG Growth | | | | — | | | | | 726,273 | | | | | — | | | | | 400,001 | |
Mid Cap Growth | | | | — | | | | | 17,824,683 | | | | | — | | | | | 21,322,402 | |
Small Cap Dividend Growth | | | | — | | | | | 2,434,551 | | | | | — | | | | | 2,755,829 | |
Small Cap Growth | | | | — | | | | | 15,601,111 | | | | | — | | | | | 16,637,779 | |
International Growth | | | | — | | | | | 1,404,681 | | | | | — | | | | | 1,252,978 | |
Developing Markets Growth | | | | — | | | | | 501,426 | | | | | — | | | | | 453,788 | |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Six Months Ended December 31, 2020 (Continued)
| (4) | Affiliated Fees and Transactions |
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:
| | | | | | | | | | |
| | | | | Net of Adviser’s |
| | | Management Fee | | Voluntary Fee Waiver |
Balanced | | | | 1.00 | % | | | | N/A | |
Dividend Growth Fund Class I and Class S | | | | 1.00 | % | | | | 0.70 | % |
Global Dividend Growth Fund Class I and Class S | | | | 1.25 | % | | | | 1.00 | % |
Large Cap Growth | | | | 1.00 | % | | | | N/A | |
ESG Growth Fund Class I and Class S | | | | 1.25 | % | | | | 1.00 | % |
Mid Cap Growth | | | | 1.25 | % | | | | N/A | |
Small Cap Dividend Growth Fund Class I and Class S | | | | 1.25 | % | | | | 1.00 | % |
Small Cap Growth | | | | 1.50 | % | | | | N/A | |
International Growth | | | | 1.50 | % | | | | N/A | |
Developing Markets Growth | | | | 2.00 | % | | | | 1.40 | % |
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).
In addition to the annual management fees, the Class S shares of Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap 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.
Effective October 1, 2017, the Adviser has agreed to limit the management fee of the Dividend Growth Fund to 0.70%, the Global Dividend Growth Fund to 1.00%, the ESG Growth Fund to 1.00%, the Small Cap Dividend Growth Fund to 1.00% and the Developing Markets Growth Fund to 1.40% for the period through June 30, 2021 of the Fund’s daily average net assets, respectively.
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, 2020:
| | | | | | | | | | | | | | | |
| | | | | % Shares | | |
| | | Shares | | Outstanding | | |
Balanced | | | | 371,639 | | | | | 18.2 | | | | | | |
Dividend Growth | | | | 1,615,890 | | | | | 11.0 | | | | | | |
Global Dividend Growth | | | | 517,211 | | | | | 25.4 | | | | | | |
Large Cap Growth | | | | 790,815 | | | | | 27.7 | | | | | | |
ESG Growth | | | | 464,165 | | | | | 95.0 | | | | | | |
Mid Cap Growth | | | | 4,459,382 | | | | | 48.8 | | | | | | |
Small Cap Dividend Growth | | | | 670,250 | | | | | 50.0 | | | | | | |
Small Cap Growth | | | | 1,028,178 | | | | | 56.8 | | | | | | |
International Growth | | | | 790,726 | | | | | 58.6 | | | | | | |
Developing Markets Growth | | | | 310,711 | | | | | 47.9 | | | | | | |
| | |
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| 78 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| (5) | Capital Share Activity |
Short-Term Trading (Redemption) Fees
The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. For the six months ended December 31, 2020, the Funds received the following redemption fees:
| | | | | | | | | | | | | | | |
| | | Class I | | Class S | | |
Dividend Growth | | | | $44 | | | | | $— | | | | | | |
Global Dividend Growth | | | | 27 | | | | | 2 | | | | | | |
Large Cap Growth | | | | 2,729 | | | | | — | | | | | | |
ESG Growth | | | | 1 | | | | | — | | | | | | |
Mid Cap Growth | | | | 2 | | | | | — | | | | | | |
EXPENSE EXAMPLE (Unaudited)
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, 2020 to December 31, 2020.
Actual Expenses
The first line of the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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.
| | | | | | | | | | | | | | | |
| Fund | | Beginning Account Value (7/1/20) | | Ending Account Value (12/31/20) | | Expenses Paid During Period* (7/1/20- 12/31/20) |
| |
| Balanced Fund |
Actual | | | $ | 1,000 | | | | $ | 1,154.70 | | | | $ | 5.43 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,020.16 | | | | $ | 5.09 | |
| | | | | | | | | | | | | | | |
| |
| Dividend Growth Fund |
Actual | | | | | | | | | | | | | | | |
Class I | | | $ | 1,000 | | | | $ | 1,206.60 | | | | $ | 3.89 | |
Class S | | | $ | 1,000 | | | | $ | 1,205.60 | | | | $ | 5.28 | |
Hypothetical | |
Class I | | | $ | 1,000 | | | | $ | 1,021.68 | | | | $ | 3.57 | |
Class S | | | $ | 1,000 | | | | $ | 1,020.42 | | | | $ | 4.84 | |
| | | | | | | | | | | | | | | |
| |
| Global Dividend Growth Fund |
Actual | | | | | | | | | | | | | | | |
Class I | | | $ | 1,000 | | | | $ | 1,206.50 | | | | $ | 5.56 | |
Class S | | | $ | 1,000 | | | | $ | 1,205.70 | | | | $ | 6.95 | |
Hypothetical | |
Class I | | | $ | 1,000 | | | | $ | 1,020.16 | | | | $ | 5.09 | |
Class S | | | $ | 1,000 | | | | $ | 1,018.90 | | | | $ | 6.36 | |
| | | | | | | | | | | | | | | |
| |
| Large Cap Growth Fund |
Actual | | | $ | 1,000 | | | | $ | 1,229.20 | | | | $ | 5.62 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,020.16 | | | | $ | 5.09 | |
| | | | | | | | | | | | | | | |
| |
| ESG Growth Fund |
Actual | | | | | | | | | | | | | | | |
Class I | | | $ | 1,000 | | | | $ | 1,187.50 | | | | $ | 5.51 | |
Class S | | | $ | 1,000 | | | | $ | 1,185.60 | | | | $ | 6.89 | |
Hypothetical | |
Class I | | | $ | 1,000 | | | | $ | 1,020.16 | | | | $ | 5.09 | |
Class S | | | $ | 1,000 | | | | $ | 1,018.90 | | | | $ | 6.36 | |
| | | | | | | | | | | | | | | |
| |
| Mid Cap Growth Fund |
Actual | | | $ | 1,000 | | | | $ | 1,280.50 | | | | $ | 7.19 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,018.90 | | | | $ | 6.36 | |
| | | | | | | | | | | | | | | |
| |
| Small Cap Dividend Growth Fund |
Actual | | | | | | | | | | | | | | | |
Class I | | | $ | 1,000 | | | | $ | 1,284.80 | | | | $ | 5.76 | |
Class S | | | $ | 1,000 | | | | $ | 1,283.60 | | | | $ | 7.19 | |
Hypothetical | |
Class I | | | $ | 1,000 | | | | $ | 1,020.16 | | | | $ | 5.09 | |
Class S | | | $ | 1,000 | | | | $ | 1,018.90 | | | | $ | 6.36 | |
| | |
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| 80 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
EXPENSE EXAMPLE (Unaudited) (Continued)
| | | | | | | | | | | | | | | |
| Fund | | Beginning Account Value (7/1/20) | | Ending Account Value (12/31/20) | | Expenses Paid During Period* (7/1/20- 12/31/20) |
| |
| Small Cap Growth Fund |
Actual | | | $ | 1,000 | | | | $ | 1,331.30 | | | | $ | 8.81 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,017.64 | | | | $ | 7.63 | |
| | | | | | | | | | | | | | | |
| |
| International Growth Fund |
Actual | | | $ | 1,000 | | | | $ | 1,222.50 | | | | $ | 8.40 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,017.64 | | | | $ | 7.63 | |
| | | | | | | | | | | | | | | |
| |
| Developing Markets Growth Fund |
Actual | | | $ | 1,000 | | | | $ | 1,282.80 | | | | $ | 8.06 | |
Hypothetical | | | $ | 1,000 | | | | $ | 1,018.15 | | | | $ | 7.12 | |
*Expenses are equal to the Fund’s annualized expense ratio of 0.70% for the Dividend Growth, Class I Fund; 0.95% for the Dividend Growth, Class S Fund; 1.00%, for the Balanced, Global Dividend Growth, Class I, Large Cap Growth, ESG Growth, Class I, and Small Cap Dividend Growth, Class I Funds; 1.25% for Dividend Growth, Class S, Global Dividend Growth, Class S, ESG Growth, Class S, Mid Cap Growth, and Small Cap Dividend Growth, Class S Funds;1.40% for Developing Markets Growth Fund and 1.50% for Small Cap Growth, and International Growth Funds, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period.)
ADDITIONAL INFORMATION (Unaudited)
PROXY VOTING
A description of the policies and procedures that Sit Investment uses to vote proxies related to the Funds’ portfolio securities is set forth in the Funds’ Statement of Additional Information, which is available on the Funds’ website at www.sitfunds.com, without charge by calling 800-332-5580 and on the Securities and Exchange Commission’s (SEC) website at www.sec.gov. The Funds’ proxy voting record is available without charge by calling 800-332-5580 and on the SEC’s website at www.sec.gov no later than August 31 for the prior 12 months ending June.
QUARTERLY SCHEDULE OF INVESTMENTS SCHEDULES
Each Fund files a complete schedule of investments with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds’ Form N-PORT is available on the SEC’s website at www.sec.gov. Each Fund’s complete schedule of investments, as filed on Form N-PORT, is also available on its website at www.sitfunds.com, or without charge by calling 800-332-5580.
STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM
The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.
At their joint meeting held on October 19, 2020, the Boards of Directors (the “Boards”) of the Sit Mutual Funds (the “Funds”) reviewed the Funds’ liquidity risk management program (the “Program”) pursuant to the Liquidity Rule. Sit Investment Associates, Inc. (“SIA”), the investment adviser to the Funds, serves as the Program Administrator and provided the Boards with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation and any material changes to the Program as of September 30, 2020 (the “Report”).
The Report described its liquidity classification methodology and the determination that a Highly Liquid Investment Minimum is not currently necessary for any Fund. The Report also noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing, and periodically reviewing liquidity risk, as follows:
A. Each Fund’s investment strategy and liquidity of investments during both normal and reasonably foreseeable stressed conditions: SIA reviewed each Fund’s strategy and the determinations that each strategy remains appropriate for an open-end fund. This determination was based on each Fund’s holding’s liquidity, diversification, and average position size.
B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions: The Report indicated that it considered historical net redemption activity and shareholder ownership concentration and distribution channels to determine each Fund’s Reasonably Anticipated Trading Size. It was also noted that each Fund has adopted an in-kind redemption policy which may be utilized to meet large redemption requests.
C. Holdings of cash and cash equivalents, as well as borrowing arrangements: The report reviewed each Fund’s holdings of cash and cash equivalents, available borrowing arrangements if any, and other funding sources.
There were no material changes to the Program during the past year. The Report stated that SIA concluded that the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
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| 82 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
ADDITIONAL INFORMATION (Unaudited) (Continued)
RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
At their joint meeting held on October 19, 2020 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 and the nature, extent and quality of the services performed by SIA, including the following:
Investment Philosophy and Process. The Directors considered SIA’s philosophy of managing assets. With respect to equity securities, SIA identifies growth-oriented securities issued by companies with the potential for earnings growth at a faster rate than the general economy and market index. SIA believes that earnings growth is the primary determinant of superior long-term returns for equity securities, and invests in companies it believes exhibit above market and consistent growth as well as conservative and cyclical growth companies. SIA’s actively managed portfolios not only concentrate on the best growth opportunities but do so at reasonable valuation levels. The Directors determined that the Stock Funds’ investment objectives are consistent with SIA’s investment philosophy and growth style. The Directors reviewed the Stock Funds’ portfolio characteristics, and noted that SIA has consistently managed the Stock Funds in a growth style and the Directors found no indication of style drift away from growth stocks over market cycles. The Directors noted that in periods during which growth stocks have generally under-performed relative to value stocks, the Stock Funds may not rank favorably in comparisons with other funds investing in value stocks.
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 $14.9 billion investment firm working for the benefit of the Fund shareholders.
Investment Performance. The Directors reviewed and discussed the Funds’ investment performance on an absolute and comparable basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as equity growth funds.
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.
ADDITIONAL INFORMATION (Unaudited) (Continued)
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 interest, brokerage commissions and transaction charges, certain extraordinary expenses, and 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, Sit Global Dividend Growth Fund, Sit Small Cap Dividend Growth Fund, and Sit ESG Growth Fund. The Directors reviewed fees paid in prior years and the current fees to be paid under the Agreements both before and after fee waivers with respect to Sit Developing Markets Growth Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit Small Cap Dividend Growth Fund, and Sit ESG Growth Fund.
The Directors compared each Fund’s expense ratio to the average and median expense ratios of no-load mutual funds within the same Morningstar, Inc. investment category, the average expense ratios for load funds within the Morningstar category, and the average expense ratios for all funds within the Morningstar category. Certain of the Fund’s expense ratios were higher than the averages, and certain of the Fund’s expense ratios were lower than the averages. The Directors noted that the Morningstar no-load categories include funds of various asset sizes, some of which are significantly larger in assets than the Funds. The Directors found each Fund’s total expense ratio to be within an acceptable range compared to the total expense ratios of other no-load funds within the Fund’s 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. 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 amount of the Funds’ current assets and the likelihood and magnitude of future increases in the Funds’ assets, negotiating a graduated fee structure for each Fund is unnecessary at this time since the fees to be paid under the current Agreements are reasonable and appropriate.
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.
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.
Based on these conclusions, without any single conclusion being dispositive, the Directors determined that renewal of the Agreements was in the interest of each Fund and its shareholders.
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| 84 | | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| | |
Semi-Annual Report | | |
December 31, 2020 | | |
| |
INVESTMENT ADVISER | | INDEPENDENT REGISTERED PUBLIC |
| |
Sit Investment Associates, Inc. | | ACCOUNTING FIRM |
| |
80 S. Eighth Street | | KPMG LLP |
| |
Suite 3300 | | Minneapolis, MN |
| |
Minneapolis, MN 55402 | | |
| |
| | GENERAL COUNSEL |
| |
CUSTODIAN | | Dorsey & Whitney LLP |
| |
The Bank Of New York Mellon | | Minneapolis, MN |
| |
111 Sanders Creek Parkway | | |
| |
Syracuse, NY 13057 | | |
| |
TRANSFER AGENT AND | | |
| |
DISBURSING AGENT | | |
| |
BNY Mellon Investment Servicing (US) Inc. | | |
| |
4400 Computer Drive | | |
| |
Westborough, MA 01581 | | |
| | | | |
| | |
 | | Sit Mutual Funds | | |
| |
1-800-332-5580 | | |
| |
www.sitfunds.com | | |
Sit Stock 12-20
| 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.
(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, 2021 | | | | |
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, 2021 | | | | |
| | | |
| By | | (Signature and Title) | | | | /s/ Roger J. Sit |
| | | | | | Roger J. Sit |
| | | | | | Chairman |
| Date | | February 26, 2021 | | | | |
