Sit Balanced Fund NCSR Certified annual shareholder report (management investment company)

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

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Sit Mutual Funds, Inc.

(Exact name of registrant as specified in charter)

3300 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

(Address of principal executive offices)

Paul E. Rasmussen, VP Treasurer

Sit Mutual Funds, Inc.

3300 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

(Name and address of agent for service)

Registrant’s telephone number, including area code:

(612) 332-3223

Date of fiscal year end: June 30, 2022

Date of reporting period: June 30, 2022

Item 1: Reports to Stockholders

LOGO

Annual Report June 30, 2022 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 Sit Mutual Funds

Sit Mutual Funds

STOCK FUNDS ANNUAL REPORT

TABLE OF CONTENTS


	Page

Chairman’s Letter		2

Fund Review and Schedules of Investments

Balanced Fund		4

Dividend Growth Fund		10

Global Dividend Growth Fund		14

Large Cap Growth Fund		18

ESG Growth Fund		22

Mid Cap Growth Fund		26

Small Cap Dividend Growth Fund		30

Small Cap Growth Fund		34

International Growth Fund		40

Developing Markets Growth Fund		46

Statements of Assets and Liabilities		50

Statements of Operations		52

Statements of Changes in Net Assets		54

Financial Highlights		58

Notes to Financial Statements		72

Report of Independent Registered Public Accounting Firm		79

Expense Example		80

Federal Tax Information		82

Information About Directors and Officers		83

Additional Information		85

This document must be preceded or accompanied by a Prospectus.

CHAIRMAN’S LETTER

August 5, 2022

Dear Fellow Shareholders:

The S&P 500^® Index posted its worst first-half loss since 1970 and worst rolling six-month loss since 2009, down -20% year to date through June 30, 2022. Despite prevailing negative investor sentiment, we believe risk/reward on stocks is attractive, as valuations now largely discount a significantly more challenging economic backdrop than what may actually transpire.

Economic Summary

Recent reports show U.S. economic growth slowed sharply in the second quarter of 2022, as domestic demand faltered under the strain of high inflation, rising interest rates, and elevated uncertainty. Manufacturing output also fell to its lowest level since 2020 due to the ongoing consumer shift to services, the knock-on effects of the war in Ukraine, Covid-19 lockdowns in China, slowing global growth, and the negative impact of the stronger U.S. dollar on export demand. Moreover, the spike in mortgage rates has cooled demand for single-family homes, though selling prices remain near record highs. Still, marginally positive GDP growth based on earlier strength may enable the U.S. to barely dodge a technical recession in the second quarter. Also, the macro setting is not all doom and gloom: household and corporate balance sheets are healthy; pent-up demand remains unsatiated; consumers still have sizable excess savings; and labor market dynamics are favorable. Our base case, therefore, is that a “soft landing” may occur as inflation recedes, allowing the Federal Reserve (Fed) to pause further rate hikes before the fallout in the economy is too severe to avoid a recession. Regardless, even if an inflation-driven recession occurs, it should prove shallower and less destructive than the debt-driven downturns of 2001 and 2007.

The Fed has raised the fed funds rate by 150 basis points since mid-March and is now signaling a peak rate of about +3.8% in 2023. It has also begun to unwind its bloated balance sheet, adding another headwind to economic growth. Thankfully, inflation is showing signs of peaking, if not receding, as global demand slows and supply chains begin to recover. The San Francisco Fed estimates supply factors explain half of the run-up in consumer inflation over the past year. Prevailing supply risks include China’s zero-Covid-19 policies, a West Coast port strike, and Russia’s weaponization of energy exports. Nonetheless, the Fed can do little to affect supply by tightening; it can only dampen demand. Moreover, the Fed’s lifting of interest rates as the economy slows raises the risk of a policy mistake considerably. Further, earlier rate hikes by other central banks and the economy’s self-correcting mechanisms are already performing much of the Fed’s work. Historically, the Fed tends to overtighten as it targets a lagging indicator (i.e., inflation), without knowing the full impact of rate hikes on the economy for 9 to 12 months. The Fed fears a prolonged period of stagflation,

rightfully so, and will risk pushing the economy into recession to bring elevated inflation to heel. Be that as it may, fed fund futures now infer the Fed will reverse course and begin cutting interest rates by mid-2023.

Outside the U.S., recession risks are rising rapidly in the Euro Area, as high energy costs spill into core inflation, consumers curb nonessential spending, export demand slows, and financial conditions tighten. In addition, recent data points to a sharp slowdown in the manufacturing sector, leaving GDP growth highly reliant on services. Inflationary pressures, exacerbated by the conflict in Ukraine and the depreciating euro, will also force the European Central Bank to lessen monetary accommodation, raising the risk of stagflation. There is also a risk the region could face a full-blown energy crisis, if Russia continues to weaponize its natural gas exports in retaliation for the sanctions imposed on it by the West and their military support to Ukraine. On a brighter note, fiscal measures are mitigating the impact of high energy prices, household balance sheets are healthy, the labor market is solid, and China’s stimulus should help on the export front. Economic activity in China improved modestly in May after a deep contraction in April, when the country’s largest city, Shanghai, was in a total lockdown and Covid-19-induced restrictions disrupted supply chains. Recent data indicate further recovery in June, thanks to the reopening of Shanghai at the start of the month. While rolling lockdowns may still happen under China’s zero-Covid-19 policy, we believe a repeat of a Shanghai-style lockdown (i.e., 25 million population locked down for over two months) is less likely, given the government’s faster response to Covid-19 outbreaks. As year-to-date real GDP growth is way below the annual target, a policy easing cycle is firmly in place. In a still-benign inflation environment, monetary policy has been accommodative, as seen in the May interest rate cut. Fiscal stimulus is also gathering speed, helping infrastructure spending and auto demand. However, with economic momentum still weak, confidence low, and global demand weakening, more robust policy support may be warranted to move the economy closer to the growth target.

Equity Strategy

Following the steep correction in stocks during the first half of 2022, we believe valuations now discount a mild downturn or stagflation scenario over the next twelve to eighteen months. Despite the +7.3% rise in forecasted next-twelve-month earnings, the S&P 500^® Index’s forward price-to-earnings (PE) multiple contracted with the climb in the 10-year Treasury yield and is now back to its 20-year mean of 15.7 times. While equity valuations appear increasingly attractive, downward earnings revisions are likely on the horizon, based on weaker economic activity and the rapid increase in the



2		SIT MUTUAL FUNDS ANNUAL REPORT

U.S. dollar, which will pressure the earnings of U.S. multinational firms. Record profit margins are also at risk, as the stimulus-led demand surge and newfound pricing power continue to unwind. Yet, PE contraction may reverse, if earnings are not as bad as feared and as investors anticipate lower interest rates. While we expect investor sentiment to improve once investors believe the Fed will go “on hold,” it would likely take a litany of proof showing inflationary pressures have abated or a broad economic downturn to trigger a Fed policy about-face.

In terms of strategy, we believe diversification and an emphasis on quality stocks are appropriate within the Sit equity Funds, as market volatility will likely persist against a backdrop of tightening Fed policy, decelerating corporate earnings growth, and continued geopolitical tensions. Quality, as we define it, refers to companies with visible earnings growth, strong balance sheets, free cash flow generation, and proven management teams. Notably, the broad-based correction in equity markets during the first half of 2022, driven entirely by multiple compression, has presented opportunities to dynamically upgrade holdings to improve each Fund’s overall risk-return profile.

Portfolios remain well-diversified among sectors due to the difficulty in predicting investor sentiment and economic conditions, particularly in the near term. Therefore, all Funds have exposure to secular growth sectors (e.g., technology, health care), cyclical sectors (e.g., capital goods, financials, transports, retail), and defensive areas (e.g., utilities, consumer staples). In addition to these groups, we have been adding to energy, as supply constraints, driven partly by years of underinvestment, should support a lasting period of elevated energy prices to benefit resource producers. Defense stocks are also attractive, as the Russia-Ukraine conflict has raised the prospect of a sharp uptick in U.S. defense spending and an unprecedented increase in European spending over the next several years. As more clarity on the economic backdrop emerges, we will look towards more aggressive sector allocations. In the meantime, stock selection remains our investment focus.

Regardless of sector, we believe dividend-paying growth stocks have particular appeal currently. A diversified portfolio of quality, growth-oriented dividend-paying companies offers investors an opportunity to participate in a market rebound, while also providing some downside protection if market fundamentals remain challenging. Dividend payout ratios remain relatively depressed, and we expect solid dividend increases in the near term, even if earnings growth slows for most companies. In this regard, dividend-paying growth stocks represent a “hedge” (i.e., through earnings growth and dividends) if inflation remains elevated. Finally, we suspect that a combination of slower economic growth and higher interest

rates will result in modest equity returns in the long run. If this assumption proves correct, dividends will be increasingly viewed as an important source of return, perhaps even greater than the 40% to 45% long-term average.

In international Funds, we are overweight South Korea, Singapore, India, and Mexico due to relatively strong economic and earnings growth prospects. We maintain a balanced portfolio of cyclical and growth stocks, plus consumer staples. Holdings include economic beneficiaries, such as financials, e-commerce, gaming, and Covid-19 reopening plays, in addition to technology and material stocks, which will benefit from the secular global transition to renewable energy. We are also overweight Chinese equities. Following disastrous first quarter 2022 performance, the MSCI China Index reversed in the second quarter on stabilizing Covid-19 cases, stimulus, and improving investor sentiment. As a result, the Index ended the first half of 2022 outperforming the MSCI World and Emerging Market indices. The rally since mid-March was led by internet names, as investors started to believe the worst of regulatory tightening was over. Post the recent re-rating, valuation is still reasonable, hovering around the historical level at less than 12 times forward earnings. Along with the expected improving economy and positive policy backdrop, we are cautiously optimistic about China. However, high volatility may remain, given ongoing Covid-19 uncertainties, Fed tightening, and geopolitical tensions. We continue to like the internet names and favor buy-on-the-dip for reopening trades and carbon-neutral themed names.

LOGO

Roger J. Sit

Chairman, President, CEO and Global CIO



JUNE 30, 2022		3



Sit Balanced Fund

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 12-month period ended June 30, 2022 was -14.87%. The S&P 500^® Index return was -10.62% over the period, while the Bloomberg Aggregate Bond Index fell -10.29%.

Factors that Influenced the Fund’s Performance

During the twelve months ended June 30, 2022, the fixed income portion of the Fund outperformed the Bloomberg Aggregate Bond Index. Outperformance was driven by an income advantage, strong performance from positions in U.S. Treasury Inflation Protected securities (TIPs), and a portfolio duration less than its benchmark as rates rose rapidly in 2022. In the second half of 2021, overweights in TIPs and the taxable municipal and corporate bond sectors contributed positively to performance, as U.S. consumers, flush with cash, unleashed a wave of pent-up demand that also drove inflationary pressures. Late in 2021, Federal Reserve members turned hawkish, finally acknowledging the risks posed by persistent inflation. Consequently, we positioned the portfolio defensively against rising interest rates and continued elevated inflation readings. In 2022, the Fed followed through on its vow to fight inflation, hiking the fed funds rate by 25 basis points in March, 50 basis points in May, and 75 basis points in June, resulting in a dramatic increase in yields and historically bad performance for the bond market. The first six months of 2022 produced a return of -10.35% for the fixed-income benchmark, the worst first-half return since 1975. The underperformance of the equity portion of the Fund during the period was largely due to negative stock selection and sector overweighting in technology services and underweighting the energy minerals sector. Offsetting this, the Fund’s overweight in the health services sector and its stock selection in the retail trade sector added to returns.

Outlook and Positioning

We view some of the recent rise in U.S. Treasury yields as overdone. Accordingly, we have selectively moved the portfolio’s duration higher to be closer to its index. We are concerned that the Fed is trying to combat inflation through policies that shrink demand, increasing the risk of recession. We believe higher prices stemming from supply shortages cannot be remedied with higher interest rates, and policies to increase supply would be a better solution for combating inflation. Yet, we believe the worst should be over for bond investors and yields will likely peak soon. We have reduced exposure to floating rate securities as well as corporate bonds due to recession risks, favoring the taxable municipal

HYPOTHETICAL GROWTH OF $10,000

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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 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 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. It is not possible to invest directly in an index. This is the primary index for the fixed income portion of the Fund.

sector, which tends to outperform during periods of declining economic activity. We expect some potential weakness in the mortgage sector going forward, as the Fed reduces its mortgage holdings. In the equity portion of the Fund, we have maintained a large overweight position in technology companies that should benefit from emerging secular trends, high switching costs, and strong pricing power. With the recent market downturn, the Fund is looking to increase its exposure to high quality, secular growth companies trading at attractive valuations.

As of June 30, 2022, the asset allocation of the Fund was 60.3% equity, 35.3% fixed income, and 4.4% cash and equivalents.

Roger J. Sit

Bryce A. Doty

Ronald D. Sit

Portfolio Managers

Information on this page is unaudited.



4		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Balanced Fund			S&P 500^® Index¹			Bloomberg Aggregate Bond Index²
One Year		-14.87	%		-10.62	%		-10.29	%
Five Year		7.40			11.31			0.88
Ten Year		8.32			12.96			1.54
Since Inception (12/31/93)		7.03			9.71			4.56

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.

² Bloomberg 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.

PORTFOLIO SUMMARY


Net Asset Value 6/30/22:	$	26.86	Per Share
Net Asset Value 6/30/21:	$	32.85	Per Share
Net Assets:	$	48.1	Million

TOP HOLDINGS

Top Equity Holdings:

Apple, Inc.

Microsoft Corp.

Alphabet, Inc.

UnitedHealth Group, Inc.

Amazon.com, Inc.

Top Fixed Income Holdings:

U.S. Treasury Inflation Bonds, 0.13%, 1/15/23

U.S. Treasury Notes, 1.88%, 2/28/27

JP Morgan Mortgage Trust, 1.43%, 7/25/52

JP Morgan Mortgage Trust, 1.63%, 8/25/52

Oregon State Fac. Auth., 2.68%, 7/1/31

Based on net assets as of June 30, 2022.

FUND DIVERSIFICATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		5

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Balanced Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 60.3%

Communications - 0.9%
American Tower Corp.		1,675		428,113


Consumer Durables - 0.5%
YETI Holdings, Inc.^*		5,500		237,985


Consumer Non-Durables - 3.0%
Constellation Brands, Inc.		2,275		530,212
Estee Lauder Cos., Inc. - Class A		1,635		416,385
Mondelez International, Inc.		3,400		211,106
PepsiCo, Inc.		1,825		304,154


				1,461,857


Consumer Services - 2.3%
McDonald’s Corp.		2,000		493,760
Visa, Inc.		3,100		610,359


				1,104,119


Electronic Technology - 9.1%
Apple, Inc.		16,450		2,249,044
Applied Materials, Inc.		5,135		467,182
Broadcom, Inc.		1,665		808,874
NVIDIA Corp.		4,200		636,678
Qualcomm, Inc.		1,625		207,578


				4,369,356


Energy Minerals - 1.1%
ConocoPhillips		5,775		518,653


Finance - 3.5%
Ameriprise Financial, Inc.		1,400		332,752
Chubb, Ltd.		1,400		275,212
First Republic Bank		1,750		252,350
Goldman Sachs Group, Inc.		1,600		475,232
JPMorgan Chase & Co.		2,925		329,384


				1,664,930


Health Services - 3.8%
Centene Corp.^*		3,150		266,522
HCA Healthcare, Inc.		2,200		369,732
UnitedHealth Group, Inc.		2,350		1,207,030


				1,843,284


Health Technology - 5.9%
Abbott Laboratories		3,550		385,708
AbbVie, Inc.		1,250		191,450
Baxter International, Inc.		4,375		281,006
Dexcom, Inc.^*		5,260		392,028
Johnson & Johnson		3,000		532,530
Medtronic, PLC		4,600		412,850
Thermo Fisher Scientific, Inc.		1,200		651,936


				2,847,508


Industrial Services - 0.4%
Cheniere Energy, Inc.		1,325		176,265


Process Industries - 1.9%
Darling Ingredients, Inc.^*		3,525		210,795
Linde, PLC		1,225		352,224
Sherwin-Williams Co.		1,625		363,854


				926,873



Name of Issuer	Quantity		Fair Value ($)

Producer Manufacturing - 3.9%
Honeywell International, Inc.		1,800		312,858
Motorola Solutions, Inc.		1,400		293,440
Northrop Grumman Corp.		875		418,749
Parker-Hannifin Corp.		1,350		332,167
Safran SA, ADR		11,550		285,747
Siemens AG, ADR		5,175		264,339


				1,907,300


Retail Trade - 6.6%
Amazon.com, Inc.^*		11,200		1,189,552
CVS Health Corp.		5,800		537,428
Home Depot, Inc.		2,050		562,254
Lululemon Athletica, Inc.^*		775		211,273
TJX Cos., Inc.		6,550		365,817
Ulta Beauty, Inc.^*		795		306,457


				3,172,781


Technology Services - 15.1%
Accenture, PLC		2,025		562,241
Adobe, Inc.^*		1,050		384,363
Alphabet, Inc. - Class A^*		620		1,351,141
Alphabet, Inc. - Class C^*		205		448,427
Atlassian Corp., PLC^*		2,000		374,800
Autodesk, Inc.^*		1,900		326,724
Dynatrace, Inc.^*		5,975		235,654
Intuit, Inc.		1,200		462,528
Microsoft Corp.		7,800		2,003,274
Paycom Software, Inc.^*		600		168,072
PayPal Holdings, Inc.^*		1,675		116,982
Salesforce, Inc.^*		3,650		602,396
ServiceNow, Inc.^*		560		266,291


				7,302,893


Transportation - 1.6%
FedEx Corp.		1,425		323,062
Union Pacific Corp.		2,050		437,224


				760,286


Utilities - 0.7%
NextEra Energy, Inc.		4,140		320,684


Total Common Stocks (cost: $18,765,680)				29,042,887



Name of Issuer	Principal Amount ($)		Fair Value ($)

Bonds - 33.9%

Asset-Backed Securities - 0.5%

OSCAR US Funding Trust VII, LLC 2017-2A A4, 2.76%, 12/10/24⁴		6,547		6,547

Small Business Administration:
2008-20A 1, 5.17%, 1/1/28		18,022		18,299
2007-20H 1, 5.78%, 8/1/27		15,942		16,247

Towd Point Mortgage Trust:
2020-MH1 A1A, 2.18%, 2/25/60^1,⁴		106,897		101,213
2019-MH1 A2, 3.00%, 11/25/58^1,⁴		100,000		96,273


				238,579

See accompanying notes to financial statements.



6		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Principal Amount ($)		Fair Value ($)

Collateralized Mortgage Obligations - 7.0%

Fannie Mae:
2017-84 JP, 2.75%, 10/25/47		18,957		17,974
2003-34 A1, 6.00%, 4/25/43		26,694		28,208
2004-T1 1A1, 6.00%, 1/25/44		16,582		17,490
1999-17 C, 6.35%, 4/25/29		6,255		6,589
2001-82 ZA, 6.50%, 1/25/32		9,684		10,279
2009-30 AG, 6.50%, 5/25/39		29,448		31,808
2013-28 WD, 6.50%, 5/25/42		28,693		31,430
2004-T1 1A2, 6.50%, 1/25/44		48,831		52,333
2004-W9 2A1, 6.50%, 2/25/44		28,838		30,795
2010-108 AP, 7.00%, 9/25/40		496		527
2004-T3 1A3, 7.00%, 2/25/44		5,594		6,099
1993-21 KA, 7.70%, 3/25/23		2,319		2,340

Freddie Mac:
4293 BA, 5.33%, 10/15/47¹		8,683		9,102
2122 ZE, 6.00%, 2/15/29		36,904		39,189
2126 C, 6.00%, 2/15/29		22,189		23,419
2480 Z, 6.00%, 8/15/32		24,810		26,360
2485 WG, 6.00%, 8/15/32		24,329		26,017
2575 QE, 6.00%, 2/15/33		10,860		11,549
2980 QA, 6.00%, 5/15/35		11,879		12,724
2283 K, 6.50%, 12/15/23		1,169		1,188
2357 ZJ, 6.50%, 9/15/31		16,702		17,645
4520 HM, 6.50%, 8/15/45		14,229		16,147
3704 CT, 7.00%, 12/15/36		10,372		11,569
2238 PZ, 7.50%, 6/15/30		9,189		10,115

Government National Mortgage Association:
2021-86 WB, 4.76%, 5/20/51¹		154,073		162,143
2021-104 HT, 5.50%, 6/20/51		190,342		206,940
2021-27 AW, 5.85%, 2/20/51¹		205,479		230,001
2015-80 BA, 6.99%, 6/20/45¹		12,007		12,932
2018-147 AM, 7.00%, 10/20/48		32,553		35,708
2018-160 DA, 7.00%, 11/20/48		27,310		29,210
2014-69 W, 7.21%, 11/20/34¹		15,852		17,210
2013-133 KQ, 7.31%, 8/20/38¹		17,845		19,601
2005-74 HA, 7.50%, 9/16/35		2,141		2,206

JP Morgan Mortgage Trust:
2022-1 A11, 1.43%, 7/25/52^1,⁴		360,858		335,135
2022-2 A11, 1.63%, 8/25/52^1,⁴		339,562		319,934
2021-13 A11, 1.78%, 4/25/52^1,⁴		311,917		289,815
2021-3 A4, 2.50%, 7/25/51^1,⁴		137,335		126,949
2021-6 A4, 2.50%, 10/25/51^1,⁴		323,953		295,182
2021-13 A4, 2.50%, 4/25/52^1,⁴		299,223		272,857
2019-HYB1 A5A, 3.00%, 10/25/49^1,⁴		35,465		33,642
2020-8 A3, 3.00%, 3/25/51^1,⁴		20,048		17,910
2021-6 A12, 5.00%, 10/25/51^1,⁴		300,094		298,603

New Residential Mortgage Loan Trust:
2018-3A A1, 4.50%, 5/25/58^1,⁴		42,739		42,510

PMT Loan Trust:
2013-J1 A11, 3.50%, 9/25/43^1,⁴		30,223		28,521

Sequoia Mortgage Trust:
2020-4 A5, 2.50%, 11/25/50^1,⁴		48,421		45,838

Vendee Mortgage Trust:
1994-2 2, 5.50%, 5/15/24¹		762		761



Name of Issuer	Principal Amount ($)		Fair Value ($)

2008-1 B, 6.02%, 3/15/25¹		7,735		8,159
Wells Fargo Mortgaged Backed Securities Trust:
2020-5 A3, 2.50%, 9/25/50^1,⁴		39,695		36,483
2020-2 A17, 3.00%, 12/25/49^1,⁴		30,224		27,695
2020-2 A3, 3.00%, 12/25/49^1,⁴		6,966		6,892

				3,343,733


Corporate Bonds - 7.1%
British Airways 2020-1 Class B Pass Through Trust, 8.38%, 11/15/28⁴		50,413		52,888
Charles Stark Draper Lab., Inc., 4.39%, 9/1/48		100,000		105,932
ConocoPhillips Co., 6.95%, 4/15/29		125,000		143,423
Consumers Energy Co., 4.35%, 8/31/64		50,000		46,272
CVS Pass-Through Trust, 7.51%, 1/10/32⁴		123,519		134,888
Delta Air Lines 2015-1 Class AA Pass Through Trust, 3.63%, 7/30/27		125,511		118,898
Duke Energy Florida, LLC:
2.54%, 9/1/29		50,000		47,558
2.86%, 3/1/33		120,000		112,374
Entergy Louisiana, LLC, 4.95%, 1/15/45		150,000		143,311
Equifax, Inc., 3.10%, 5/15/30		100,000		88,088
Equinor ASA, 7.15%, 11/15/25		150,000		164,455
Fairfax Financial Holdings, 7.75%, 7/15/37		150,000		167,668
ITT, LLC, 7.40%, 11/15/25		25,000		26,652
Johnson & Johnson, 3.55%, 3/1/36		150,000		142,533
Lincoln National Corp., 7.00%, 6/15/40		100,000		114,620
Nationwide Mutual Insurance Co. (Subordinated), 3 Mo. Libor + 2.29, 4.12%, 12/15/24^1,⁴		195,000		195,044
Northern Trust Corp. (Subordinated), 3 Mo. Libor + 1.13, 3.38%, 5/8/32¹		250,000		235,703
PacifiCorp, 7.70%, 11/15/31		150,000		185,129
Polar Tankers, Inc., 5.95%, 5/10/37⁴		100,000		105,538
Principal Financial Group, Inc., 3 Mo. Libor + 3.04%, 4.46%, 5/15/55¹		100,000		89,504
Security Benefit Life Insurance Co. (Subordinated), 7.45%, 10/1/33⁴		100,000		97,106
Spirit Airlines, 4.10%, 4/1/28		111,241		106,636
Tennessee Gas Pipeline, LLC, 7.00%, 10/15/28		213,000		232,340
Tyco Intl. Finance, 3.90%, 2/14/26		200,000		192,141
United Airlines 2019-2 Class AA Pass Through Trust, 2.70%, 5/1/32		136,508		116,600
Unum Group, 7.25%, 3/15/28		25,000		27,017
West Loop BC (Subordinated), 3 Mo. Libor + 1.87, 4.00%, 12/1/27¹		225,000		222,884

				3,415,202


Federal Home Loan Mortgage Corporation - 0.3%
7.50%, 7/1/29		64,405		69,281
8.00%, 2/1/34		6,481		6,928
8.50%, 9/1/24		15		15
8.50%, 5/1/31		79,750		86,417

				162,641


Federal National Mortgage Association - 1.4%
5.50%, 10/1/33		36,382		37,873
5.50%, 8/1/56		179,369		194,851
6.00%, 7/1/41		170,630		184,404
6.50%, 2/1/24		3,254		3,279

See accompanying notes to financial statements.



JUNE 30, 2022		7

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Balanced Fund (Continued)



Name of Issuer	Principal Amount ($)		Fair Value ($)

6.50%, 9/1/27		22,581		23,718
6.50%, 6/1/40		67,568		72,433
7.00%, 1/1/32		4,813		4,895
7.00%, 3/1/33		14,163		14,909
7.00%, 12/1/38		17,312		18,159
8.00%, 6/1/24		3,003		3,076
8.00%, 1/1/31		4,966		4,992
8.00%, 2/1/31		15,270		17,084
8.00%, 9/1/37		39,070		42,559
8.42%, 7/15/26		1,567		1,580
8.50%, 10/1/30		16,118		17,376
10.00%, 6/1/31		19,439		20,613


				661,801


Government National Mortgage Association - 0.2%
5.00%, 5/20/48		32,997		34,407
5.75%, 12/15/22		423		421
6.50%, 11/20/38		9,463		9,937
7.00%, 12/15/24		3,845		3,922
7.00%, 11/20/27		6,666		6,997
7.00%, 9/20/29		18,174		19,534
7.00%, 9/20/38		7,089		7,772
7.50%, 4/20/32		10,305		10,799
8.00%, 7/15/24		512		515


				94,304


Taxable Municipal Securities - 11.4%
Chicago Park Dist., 2.53%, 1/1/34		235,000		194,364
City of Encinitas CA, 1.45%, 9/1/27		250,000		224,900
CO Health Facs. Auth., 3.13%, 5/15/27		250,000		228,935
Colliers Hill Metropolitan Dist. No. 2 G.O., 3.99%, 12/1/47		250,000		224,435
Colorado Edu. & Cultural Fac. Auth., 3.97%, 3/1/56		205,000		179,254
Coventry Local Sch. Dist., 2.20%, 11/1/29		200,000		177,678
Great Lakes Water Auth. Sewage Disposal System, 3.51%, 7/1/44		150,000		121,630
IN Finance Auth., 3.31%, 3/1/51		250,000		179,315
Kentucky Higher Edu. Student Loan Corp. (Subordinated), 5.27%, 6/1/36		100,000		95,203
LaGrange Co. Regional Utility Dist., 2.98%, 1/1/40		230,000		190,139
Louisiana State Trans. Auth., 1.45%, 2/15/27		300,000		269,826
Madison Co. Comm. Sch. Dist. No. 7, 1.90%, 12/1/30		150,000		125,447
Maricopa Co. Industrial Dev. Auth., 5.00%, 7/1/44 ⁴		100,000		98,858
Massachusetts Edu. Auth.:
4.00%, 1/1/32		30,000		30,248
4.41%, 7/1/34		20,000		20,191
4.95%, 7/1/38		200,000		199,918
MN Hsg. Fin. Agy., 2.31%, 1/1/27		145,000		140,200
NJ Higher Edu. Student Assit. Auth., 3.50%, 12/1/39 ⁸		100,000		95,639
No. Dakota Hsg. Fin. Auth., 3.70%, 7/1/33		100,000		95,127
NY City Hsg. Dev. Corp., 2.74%, 11/1/36		250,000		200,405
NY Mortgage Agency, 2.98%, 10/1/40		150,000		124,651
NY State Dormitory Auth., 2.69%, 7/1/35		200,000		163,428
Oregon State Fac. Auth.:
2.68%, 7/1/31		350,000		299,757



Name of Issuer	Principal Amount ($)		Fair Value ($)

3.29%, 10/1/40		100,000		78,314
Public Fin. Auth., 4.23%, 7/1/32		105,000		103,216
RI Student Loan Auth., 4.13%, 12/1/27		200,000		198,886
South Carolina Student Loan Corp., 2.92%, 12/1/28		200,000		181,164
State of Ohio, 2.17%, 12/1/31		250,000		221,550
Texas Children’s Hospital, 3.37%, 10/1/29 ¹⁷		115,000		112,202
Texas Trans. Comm. State Highway, 5.18%, 4/1/30		150,000		160,133
Utah Charter Sch. Fin. Auth., 2.40%, 10/15/27		205,000		190,043
VA Hsg. Dev. Auth., 2.13%, 7/25/51		237,998		212,580
WA State Hsg. Fin. Comm., 3.50%, 7/1/24 ⁴		250,000		244,498
Wichita Falls, 1.65%, 9/1/28		145,000		127,090


				5,509,224


U.S. Treasury / Federal Agency Securities - 6.0%
U.S. Treasury Inflation Bonds 0.13%, 1/15/23		1,503,024		1,528,505
U.S. Treasury Notes 1.88%, 2/28/27		850,000		808,098
U.S. Treasury Strip:
1.97%, 11/15/50 ⁶		625,000		256,958
2.18%, 8/15/47 ⁶		650,000		282,136


				2,875,697


Total Bonds (cost $17,937,807)				16,301,181



Name of Issuer	Quantity		Fair Value ($)

Investment Companies 1.4%
BlackRock Enhanced Government Fund		4,886		51,320
Nuveen Multi-Market Income Fund, Inc.		3,953		24,113
Putnam Master Intermediate Income Trust		61,000		208,010
Putnam Premier Income Trust		58,975		224,105
WA Inflation-Linked Opp. & Inc. Fund		4,709		49,586
WA Inflation-Linked Sec. & Inc. Fund		10,953		107,120


Total Investment Companies (cost: $795,316)				664,254


Short-Term Securities - 4.2%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $2,024,846)		2,024,846		2,024,846


Total Investments in Securities - 99.8% (cost $39,523,649)				48,033,168

Other Assets and Liabilities, net - 0.2%				93,260


Net Assets - 100.0%				$48,126,428

See accompanying notes to financial statements.



8		SIT MUTUAL FUNDS ANNUAL REPORT

*	Non-income producing security.

Variable rate security. Rate disclosed is as of June 30, 2022. 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 June 30, 2022 was $3,310,819 and represented 6.9% 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 June 30, 2022, 0.2% of net assets in the Fund was invested in such securities.

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.

A summary of the levels for the Fund’s investments as of June 30, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities
	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)

Common Stocks^**		29,042,887		—		—		29,042,887
Asset-Backed Securities		—		238,579		—		238,579
Collateralized Mortgage Obligations		—		3,343,733		—		3,343,733
Corporate Bonds		—		3,415,202		—		3,415,202
Federal Home Loan Mortgage Corporation		—		162,641		—		162,641
Federal National Mortgage Association		—		661,801		—		661,801
Government National Mortgage Association		—		94,304		—		94,304
Taxable Municipal Securities		—		5,509,224		—		5,509,224
U.S. Treasury / Federal Agency Securities		—		2,875,697		—		2,875,697
Investment Companies		664,254		—		—		664,254
Short-Term Securities		2,024,846		—		—		2,024,846

Total:		31,731,987		16,301,181		—		48,033,168

**	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.



JUNE 30, 2022		9



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 -7.27% return during the 12-month period ended June 30, 2022, compared to the -10.62% return for the S&P 500^® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 2.15% as of 6/30/22, compared to 1.71% for the S&P 500^® Index.

Factors that Influenced the Fund’s Performance

The Fund posted strong relative returns over the 12-month period, outperforming the S&P500^® Index by +3.35%. The main reason for the better results was the Fund’s focus on investing in stable, cash flow-generative companies that outperformed, especially in the volatile market environment in the first half of 2022. The four key sectors that led to outperformance over the period were technology services, retail trade, consumer services, and utilities. Also, the Fund has maintained an overweight position in the utilities sector, as valuations and high dividend yields appeared attractive, which proved prescient during the first half of 2022, when investors rotated away from high growth technology companies and into more stable equities. In technology services, the Fund benefitted from its less speculative holdings, such as Accenture plc, Genpact Ltd, and Oracle, while not owning or being underweight higher growth companies whose valuations were more negatively affected by rising interest rates. Similarly, in the retail trade and consumer services spaces, the Fund benefitted from holdings such as CVS Health and McDonalds, and not owning high-valued names, such as Amazon. com, Netflix, and Walt Disney. Relative performance was adversely affected by the Fund’s underweight position in energy minerals, where many equities rallied on rising commodity prices, and stock selection in the electronic technology sector, where owning equities, such as Sky-works Solutions and Applied Materials, weighed on performance.

Outlook and Positioning

We believe dividend-paying stocks remain compelling. While dividend payers benefitted from the broadening stock market that began late last summer, the more defensive lower beta stocks within the dividend-paying universe had lagged until the high-beta sell-off that occurred during the first half of 2022. While equity valuations appear increasingly attractive, downward earnings revisions are likely on the horizon. On average, S&P 500^® Index earnings slump about -9% in mild recessions.

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

However, based on bottom-up estimates, consensus currently infers +10.3% growth in 2022 and +9.6% in 2023. Still, sizable upward revisions in energy have masked cuts in other sectors, notably consumer discretionary. Accordingly, the Fund has been looking to increase its weight in dividend-paying energy companies at attractive valuations, as we believe increasing cash flow at these companies due to higher commodity prices will lead to increasing return on capital to shareholders through share repurchases and dividend increases. As interest rates increase and higher inflation weighs on consumer spending, the Fund has maintained an underweight position in the retail trade sector. With the recent deprecation in higher valuation, high growth technology companies, the Fund is looking to maintain its overweight sector balance here, with a focus on companies with sustainable business models and pricing power that have been unfairly punished by the high-beta sell-off in the market.

Roger J. Sit

Kent L. Johnson

Portfolio Managers

Information on this page is unaudited.



10		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Dividend Growth Fund
	Class I			Class S			S&P 500^® Index¹
One Year		-7.27	%		-7.50	%		-10.62%
Five Year		10.07			9.80			11.31
Ten Year		11.50			11.22			12.96
Since Inception-Class I		9.64			n/a			9.00
(12/31/03)
Since Inception-Class S		n/a			9.05			9.00
(3/31/06)

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. 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.

PORTFOLIO SUMMARY


Class I:
Net Asset Value 6/30/22:	$	14.29	Per Share
Net Asset Value 6/30/21:	$	17.37	Per Share
Net Assets:	$	191.0	Million

Class S:
Net Asset Value 6/30/22:	$	14.20	Per Share
Net Asset Value 6/30/21:	$	17.27	Per Share
Net Assets:	$	21.9	Million

Weighted Average Market Cap:	$	363.4	Billion

TOP 10 HOLDINGS

Microsoft Corp.

Apple, Inc.

Johnson & Johnson

Broadcom, Inc.

ConocoPhillips

Alphabet, Inc. - Class A

Analog Devices, Inc.

Medtronic, PLC

UnitedHealth Group, Inc.

10.

NextEra Energy, Inc.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		11

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Dividend Growth Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 98.5%

Commercial Services - 1.2%
Booz Allen Hamilton Holding Corp.		28,250		2,552,670


Communications - 1.9%
American Tower Corp.		15,500		3,961,645


Consumer Non-Durables - 6.0%
Constellation Brands, Inc.		10,700		2,493,742
Mondelez International, Inc.		39,825		2,472,734
NIKE, Inc.		7,300		746,060
PepsiCo, Inc.		21,925		3,654,021
Procter & Gamble Co.		24,450		3,515,665


				12,882,222


Consumer Services - 2.7%
McDonald’s Corp.		9,750		2,407,080
Visa, Inc.		16,455		3,239,825


				5,646,905


Electronic Technology - 14.4%
Analog Devices, Inc.		28,150		4,112,433
Apple, Inc.		83,350		11,395,612
Applied Materials, Inc.		24,500		2,229,010
Broadcom, Inc.		12,400		6,024,044
KLA Corp.		2,700		861,516
Marvell Technology, Inc.		38,900		1,693,317
Qualcomm, Inc.		10,450		1,334,883
TE Connectivity, Ltd.		26,950		3,049,393


				30,700,208


Energy Minerals - 2.4%
ConocoPhillips		56,925		5,112,434


Finance - 13.4%
Alexandria Real Estate Equities, Inc.		11,950		1,733,109
American International Group, Inc.		46,875		2,396,719
Ameriprise Financial, Inc.		10,000		2,376,800
Chubb, Ltd.		10,425		2,049,346
Everest Re Group, Ltd.		9,775		2,739,737
Goldman Sachs Group, Inc.		5,800		1,722,716
MetLife, Inc.		28,475		1,787,945
Morgan Stanley		52,075		3,960,824
Realty Income Corp.		56,400		3,849,864
Regions Financial Corp.		109,400		2,051,250
Truist Financial Corp.		36,400		1,726,452
Wells Fargo & Co.		53,650		2,101,471


				28,496,233


Health Services - 4.0%
HCA Healthcare, Inc.		13,900		2,336,034
Quest Diagnostics, Inc.		15,925		2,117,706
UnitedHealth Group, Inc.		7,800		4,006,314


				8,460,054


Health Technology - 13.1%
Abbott Laboratories		32,675		3,550,139
Agilent Technologies, Inc.		12,250		1,454,933
AstraZeneca, PLC, ADR		53,400		3,528,138
Baxter International, Inc.		38,525		2,474,461
Bristol-Myers Squibb Co.		37,075		2,854,775
Johnson & Johnson		39,200		6,958,392



Name of Issuer	Quantity		Fair Value ($)

Medtronic, PLC		44,950		4,034,262
Thermo Fisher Scientific, Inc.		5,750		3,123,860


				27,978,960


Industrial Services - 2.9%
Jacobs Engineering Group, Inc.		16,950		2,154,853
Waste Management, Inc.		7,850		1,200,893
Williams Cos., Inc.		91,450		2,854,155


				6,209,901


Non-Energy Minerals - 0.7%
BHP Group, Ltd., ADR		27,475		1,543,546


Process Industries - 2.7%
Air Products & Chemicals, Inc.		9,200		2,212,416
DuPont de Nemours, Inc.		18,200		1,011,556
Linde, PLC		2,925		841,025
Nutrien, Ltd.		20,100		1,601,769


				5,666,766


Producer Manufacturing - 6.5%
Carlisle Cos, Inc.		11,400		2,720,154
Eaton Corp., PLC		21,325		2,686,737
General Dynamics Corp.		10,775		2,383,968
Northrop Grumman Corp.		5,500		2,632,135
Parker-Hannifin Corp.		6,200		1,525,510
Siemens AG, ADR		36,700		1,874,636


				13,823,140


Retail Trade - 4.9%
CVS Health Corp.		33,475		3,101,793
Home Depot, Inc.		8,225		2,255,871
Target Corp.		15,725		2,220,842
TJX Cos., Inc.		53,025		2,961,446


				10,539,952


Technology Services - 13.4%
Accenture, PLC		10,975		3,047,209
Alphabet, Inc. - Class A ^*		2,060		4,489,275
Genpact, Ltd.		59,950		2,539,482
Intuit, Inc.		5,050		1,946,472
Microsoft Corp.		50,765		13,037,975
Oracle Corp.		50,314		3,515,439


				28,575,852


Transportation - 2.2%
FedEx Corp.		8,250		1,870,358
Union Pacific Corp.		12,825		2,735,316


				4,605,674


Utilities - 6.1%
Alliant Energy Corp.		47,600		2,789,836
Entergy Corp.		29,625		3,336,960
NextEra Energy, Inc.		51,625		3,998,873
Xcel Energy, Inc.		40,200		2,844,552


				12,970,221


Total Common Stocks (cost: $179,427,054)				209,726,383

See accompanying notes to financial statements.



12		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Quantity		Fair Value ($)

Short-Term Securities -1.3%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $2,809,363)		2,809,363		2,809,363


Total Investments in Securities - 99.8% (cost $182,236,417)				212,535,746

Other Assets and Liabilities, net - 0.2%				389,771


Net Assets - 100.0%			$	212,925,517

*	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 June 30, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities
	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)
Common Stocks^**		209,726,383		—		—		209,726,383
Short-Term Securities		2,809,363		—		—		2,809,363
Total:		212,535,746		—		—		212,535,746

**	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.



JUNE 30, 2022		13



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 -11.31% during the 12-month period ended June 30, 2022, compared to the return of the MSCI World Index of -14.34%. The Fund’s gross dividend yield (before deducting Fund expenses) was 2.10%, compared to a 2.16% dividend yield for the MSCI World Index.

Factors that Influenced the Fund’s Performance

Contributing favorably to performance during the 12-month period were the Fund’s holdings in the software & services and capital goods and its underweight in retailing. Specific holdings in these groups that helped returns included Microsoft, Accenture plc, BAE Systems plc, Lockheed Martin, and Singapore Technologies Engineering, while not owning Meta Platforms, PayPal Holdings, Amazon.com, and Accenture plc also assisted performance. Conversely, the Fund’s lack of exposure to the energy sector and its stock selection in the technology hardware & equipment and diversified financials sectors detracted from performance. The Fund did not own Exxon, Chevron, and Shell plc, which were each up strongly during the period.

Geographically, the Fund’s stock selection in North America and the United Kingdom and, additionally, its overweight in the United Kingdom added value during the 12-month period. Specific stocks owned that helped returns included BAE Systems plc, AstraZeneca plc, PepsiCo, and Johnson & Johnson. However, the Fund’s performance was hurt by stock selections in Non-Euroland and Euroland, namely Logitech International SA, Partners Group Holding AG, Faurecia SE, and adidas AG.

Outlook and Positioning

We expect market volatility to persist against a backdrop of tightening Fed policy, decelerating corporate earnings growth, and continued geopolitical tensions. Therefore, portfolios remain well-diversified among sectors, with an emphasis on quality stocks, due to the difficulty in predicting investor sentiment and economic conditions, particularly in the near term. Quality, as we define it, refers to companies with visible earnings growth, strong balance sheets, free cash flow generation, and proven management teams. Regardless of sector, we believe dividend-paying growth stocks have particular appeal currently. A diversified portfolio of quality, growth-oriented dividend-paying companies offers investors an opportunity to participate in a market rebound while

HYPOTHETICAL GROWTH OF $10,000

LOGO

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 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.

also providing some downside protection if market fundamentals remain challenging.

Internationally, we are overweight equities in South Korea, Singapore, India, and Mexico due to better economic and earnings growth prospects Asia ex-Japan economic growth is forecast to expand +4.7% in 2022, led by China and India. Latin America GDP growth is estimated at a +2.2% pace this year, led by Mexico. Holdings include economic beneficiaries, such as financials, e-commerce, gaming, and Covid-19 reopening plays, as well as technology and material stocks, which we believe will benefit from the secular global transition to renewable energy. We are also overweight Chinese equities. Here, we continue to like the internet names and favor buy-on-the-dip for reopening trades and carbon-neutral themed names.

Roger J. Sit Raymond E. Sit

Kent L. Johnson

Portfolio Managers

Information on this page is unaudited.



14		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Global Dividend Growth Fund
	Class I			Class S			MSCI World Index¹
One Year		-11.31	%		-11.58	%		-14.34%
Five Year		7.80			7.52			7.67
Ten Year		8.33			8.06			9.51
Since Inception (9/30/08)		8.37			8.10			7.83

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.

PORTFOLIO SUMMARY


Class I:
Net Asset Value 6/30/22:	$	19.77	Per Share
Net Asset Value 6/30/21:	$	22.47	Per Share
Net Assets:	$	37.1	Million

Class S:
Net Asset Value 6/30/22:	$	19.74	Per Share
Net Asset Value 6/30/21:	$	22.45	Per Share
Net Assets:	$	3.4	Million

Weighted Average Market Cap:	$	409.7	Billion

TOP 10 HOLDINGS

Microsoft Corp.

Apple, Inc.

Johnson & Johnson

Accenture, PLC

AstraZeneca, PLC, ADR

Alphabet, Inc.- Class A

PepsiCo, Inc.

Broadcom,Inc.

Union Pacific Corp.

10.

UnitedHealth Group, Inc.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		15

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Global Dividend Growth Fund

Investments are grouped by geographic region



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 98.7%

Asia - 6.8%

Australia - 3.7%
Atlassian Corp., PLC ^*		3,525		660,585
BHP Group, Ltd. ADR		6,150		345,507
Macquarie Group, Ltd.		3,900		442,857
Woodside Energy Group, Ltd., ADR		2,222		47,906


				1,496,855


Japan - 1.9%
Astellas Pharma, Inc.		29,900		466,086
Recruit Holdings Co., Ltd.		10,800		317,998


				784,084


Singapore - 1.2%
Singapore Technologies Engineering, Ltd.		158,600		465,765


Europe - 31.9%

France - 1.1%
Faurecia SE ^*		11,926		236,397
Safran SA, ADR		7,700		190,498


				426,895


Germany - 4.3%
adidas AG		835		147,671
Allianz SE, ADR		35,000		666,050
Deutsche Post AG		4,050		151,687
Infineon Technologies AG		6,425		155,467
Muenchener Rueckversicherungs AG		650		152,718
Siemens AG		4,350		442,593
Siemens Energy AG		1,600		23,449


				1,739,635


Ireland - 5.6%
Accenture, PLC		3,675		1,020,364
Linde, PLC		1,475		424,107
Medtronic, PLC		6,200		556,450
Trane Technologies, PLC		2,175		282,467


				2,283,388


Spain - 1.6%
Iberdrola SA		60,400		626,379


Sweden - 0.5%
Telefonaktiebolaget LM Ericsson, ADR		26,975		199,615


Switzerland - 7.1%
Chubb, Ltd.		2,650		520,937
Logitech International SA		9,625		501,077
Lonza Group AG		950		506,521
Nestle SA		6,075		709,158
Partners Group Holding AG		725		653,271


				2,890,964


United Kingdom - 11.7%
AstraZeneca, PLC, ADR		15,400		1,017,478
BAE Systems, PLC		74,675		754,668
Diageo, PLC, ADR		4,225		735,657
HomeServe, PLC		33,725		481,147
London Stock Exchange Group, PLC		6,875		638,717
RELX, PLC		17,550		474,869



Name of Issuer	Quantity		Fair Value ($)

Shell, PLC, ADR		12,125		634,016


				4,736,552


North America - 60.0%

United States - 60.0%
Abbott Laboratories		7,400		804,010
AbbVie, Inc.		3,450		528,402
AES Corp.		5,100		107,151
Alphabet, Inc. - Class A ^*		450		980,667
Apple, Inc.		19,200		2,625,024
Applied Materials, Inc.		8,175		743,761
Arthur J Gallagher & Co.		3,775		615,476
Bank of America Corp.		16,300		507,419
Broadcom, Inc.		1,825		886,603
Constellation Brands, Inc.		2,750		640,915
CVS Health Corp.		6,625		613,873
Equifax, Inc.		1,000		182,780
Euronet Worldwide, Inc. ^*		2,800		281,652
FedEx Corp.		1,950		442,085
Goldman Sachs Group, Inc.		1,400		415,828
Home Depot, Inc.		2,550		699,389
Honeywell International, Inc.		3,200		556,192
Johnson & Johnson		6,925		1,229,257
JPMorgan Chase & Co.		7,350		827,683
Lockheed Martin Corp.		1,565		672,887
McDonald’s Corp.		1,860		459,197
Microsoft Corp.		10,725		2,754,502
Mondelez International, Inc.		7,100		440,839
Otis Worldwide Corp.		3,875		273,846
PepsiCo, Inc.		5,775		962,461
Salesforce, Inc. ^*		725		119,654
Scotts Miracle-Gro Co.		2,675		211,298
Sherwin-Williams Co.		1,875		419,831
Starbucks Corp.		2,950		225,351
T Rowe Price Group, Inc.		2,450		278,344
Thermo Fisher Scientific, Inc.		1,175		638,354
Union Pacific Corp.		4,050		863,784
UnitedHealth Group, Inc.		1,625		834,649
Waste Management, Inc.		5,100		780,198
WEC Energy Group, Inc.		6,150		618,936


				24,242,298


Total Common Stocks (cost: $26,000,366)				39,892,430


Short-Term Securities - 1.2%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $495,874)		495,874		495,874


Total Investments in Securities - 99.9% (cost $26,496,240)				40,388,304

Other Assets and Liabilities, net - 0.1%				59,449


Net Assets - 100.0%				$40,447,753

See accompanying notes to financial statements.



16		SIT MUTUAL FUNDS ANNUAL REPORT

*	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 June 30, 2022 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
	Prices ($)		observable inputs ($)		unobservable inputs ($)		Total ($)
Common Stocks
Australia		1,496,855		—		—		1,496,855
France		426,895		—		—		426,895
Germany		1,739,635		—		—		1,739,635
Ireland		2,283,388		—		—		2,283,388
Japan		784,084		—		—		784,084
Singapore		465,765		—		—		465,765
Spain		626,379		—		—		626,379
Sweden		199,615		—		—		199,615
Switzerland		2,890,964		—		—		2,890,964
United Kingdom		4,736,552		—		—		4,736,552
United States		24,242,298		—		—		24,242,298
Short-Term Securities		495,874		—		—		495,874
Total:		40,388,304		—		—		40,388,304

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.



JUNE 30, 2022		17



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 -18.78% during the 12-month period ended June 30, 2022, compared to a -18.77% return for the Russell 1000^® Growth Index. The S&P 500^® Index return for the period was -10.62%.

Factors that Influenced the Fund’s Performance

The Fund posted a negative return during the period, in line with the negative performance of its benchmark, the Russell 1000^® Growth Index. The largest detractors to relative performance over the 12-month period were the Fund’s stock selection in the consumer durables sector and its overweight and stock selection in the technology services sector. Regarding consumer durables, the group outperformed the market, as many companies here benefitted from improving consumer spending as the economy reopened during the second half of 2021, but the Fund’s return was hurt by its position in YETI Holdings (-53%) and by not owning Tesla (down only -1%) during the year. In technology services, owning PayPal Holdings (-76%) and DocuSign (-73%) detracted from performance. Countering this was strong stock selection and an overweight position in the health services sector. Key holdings here include UnitedHealth Group and Centene. The Fund also benefitted from its underweight in the retail trade sector and its stock selection in the health technology sector. Holdings in the latter that helped performance include Thermo Fisher Scientific and Johnson & Johnson.

Outlook and Positioning

The S&P 500^® Index posted its worst first-half loss since 1970 and its worst rolling 6-month loss since 2009, down -20% year to date through June 30, 2022. Despite the +7.3% rise in forecasted next-twelve-month earnings, the S&P 500^® forward price-to-earnings (PE) multiple contracted with the climb in the 10-year Treasury yield and is now back to its 20-year mean of 15.7 times. The large year-to-date shift in bond yields hit long-duration and other rate-sensitive equities especially hard. As a result, tech-heavy (and energy-light) growth indices incurred steeper losses than their core or value counterparts. We believe stocks largely discount a mild downturn or stagflation scenario but expect markets to stay volatile. Catalysts for stock upside include earnings cuts that are less severe than feared, easing inflation/a less hawkish Fed, and signs

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

China’s stimulus is backstopping global growth. Downside risks include persistent inflation, a policy error, Covid-19 flare-ups, or a geopolitical crisis. Nevertheless, equity market dislocations are providing attractive buying opportunities for stock picking, particularly in areas where valuation multiple compression has been excessive, including financials and technology. Realizing negative sentiment in these groups may continue until there is more clarity on the extent of the economic slowdown, portfolios also emphasize defense, health care, and dividend payors across sectors, as equity markets will likely stay volatile near-term. Also, in this inflationary environment, the Fund remains focused on owning high quality growth companies with sustained pricing power at valuations that are attractive.

Roger J. Sit

Ronald D. Sit

Portfolio Managers

Information on this page is unaudited.



18		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Large Cap Growth Fund			Russell 1000^® Growth Index¹			Russell 1000^® Index²
One Year		-18.78	%		-18.77	%		-13.04	%
Five Year		12.45			14.29			11.00
Ten Year		12.86			14.80			12.82
Since Inception ³(9/2/82)		10.31			11.52			11.67

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.

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 6/30/22:	$	48.29	Per Share
Net Asset Value 6/30/21:	$	63.04	Per Share
Net Assets:	$	136.4	Million
Weighted Average Market Cap:	$	701.3	Billion

TOP HOLDINGS

Apple, Inc.

Microsoft Corp.

Alphabet, Inc.

Amazon.com, Inc.

UnitedHealth Group, Inc.

Broadcom, Inc.

NVIDIA Corp.

Thermo Fisher Scientific, Inc.

Accenture, PLC

10.

Applied Materials, Inc.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		19

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Large Cap Growth Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 99.0%

Commercial Services - 0.6%
Equifax, Inc.		4,400		804,232


Communications - 1.3%
American Tower Corp.		6,950		1,776,351


Consumer Durables - 1.2%
Activision Blizzard, Inc.		8,250		642,345
YETI Holdings, Inc. ^*		23,950		1,036,317


				1,678,662


Consumer Non-Durables - 5.2%
Constellation Brands, Inc.		7,425		1,730,471
Estee Lauder Cos., Inc. - Class A		7,600		1,935,492
Mondelez International, Inc.		12,850		797,856
NIKE, Inc.		9,050		924,910
PepsiCo, Inc.		10,000		1,666,600


				7,055,329


Consumer Services - 3.2%
McDonald’s Corp.		6,650		1,641,752
Visa, Inc.		13,650		2,687,549


				4,329,301


Electronic Technology - 20.3%
Apple, Inc.		123,875		16,936,190
Applied Materials, Inc.		30,000		2,729,400
Broadcom, Inc.		7,800		3,789,318
NVIDIA Corp.		22,700		3,441,093
QUALCOMM, Inc.		6,325		807,955


				27,703,956


Energy Minerals - 1.6%
ConocoPhillips		24,600		2,209,326


Finance - 2.3%
Chubb, Ltd.		5,050		992,729
Goldman Sachs Group, Inc.		5,150		1,529,653
JPMorgan Chase & Co.		4,900		551,789


				3,074,171


Health Services - 5.6%
Centene Corp. ^*		12,350		1,044,933
HCA Healthcare, Inc.		5,850		983,151
UnitedHealth Group, Inc.		10,825		5,560,045


				7,588,129


Health Technology - 8.6%
Abbott Laboratories		15,500		1,684,075
AbbVie, Inc.		9,150		1,401,414
Baxter International, Inc.		17,425		1,119,208
Dexcom, Inc. ^*		22,000		1,639,660
Johnson & Johnson		9,400		1,668,594
Medtronic, PLC		15,825		1,420,294
Thermo Fisher Scientific, Inc.		5,250		2,852,220


				11,785,465


Industrial Services - 0.6%
Cheniere Energy, Inc.		6,175		821,460



Name of Issuer	Quantity		Fair Value ($)

Process Industries - 2.0%
Darling Ingredients, Inc. ^*		13,700		819,260
Linde, PLC		2,650		761,954
Sherwin-Williams Co.		5,225		1,169,930


				2,751,144


Producer Manufacturing - 4.3%
Aptiv, PLC ^*		7,275		647,984
Honeywell International, Inc.		8,425		1,464,349
Northrop Grumman Corp.		3,475		1,663,031
Parker-Hannifin Corp.		3,950		971,898
Siemens AG, ADR		21,675		1,107,159


				5,854,421


Retail Trade - 8.0%
Amazon.com, Inc. ^*		63,000		6,691,230
Home Depot, Inc.		8,425		2,310,725
Lululemon Athletica, Inc. ^*		3,575		974,580
TJX Cos., Inc.		18,075		1,009,489


				10,986,024


Technology Services - 30.8%
Accenture, PLC		10,200		2,832,030
Adobe, Inc. ^*		6,250		2,287,875
Alphabet, Inc. - Class A ^*		625		1,362,038
Alphabet, Inc. - Class C ^*		3,675		8,038,879
Atlassian Corp., PLC ^*		7,675		1,438,295
Autodesk, Inc. ^*		7,700		1,324,092
EPAM Systems, Inc. ^*		725		213,715
Intuit, Inc.		5,200		2,004,288
Meta Platforms, Inc. ^*		6,750		1,088,437
Microsoft Corp.		58,900		15,127,287
Paycom Software, Inc. ^*		2,500		700,300
PayPal Holdings, Inc. ^*		17,600		1,229,184
salesforce.com, Inc. ^*		15,225		2,512,734
ServiceNow, Inc. ^*		2,275		1,081,808
Splunk, Inc. ^*		8,100		716,526


				41,957,488


Transportation - 2.7%
FedEx Corp.		7,575		1,717,328
Union Pacific Corp.		9,200		1,962,176


				3,679,504


Utilities - 0.7%
NextEra Energy, Inc.		13,100		1,014,726


Total Common Stocks (cost: $61,572,208)				135,069,689


Short-Term Securities - 1.1%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $1,435,915)		1,435,915		1,435,915


Total Investments in Securities - 100.1% (cost $63,008,123)				136,505,604

Other Assets and Liabilities, net - (0.1)%				(70,422)


Net Assets - 100.0%			$	136,435,182

See accompanying notes to financial statements.



20		SIT MUTUAL FUNDS ANNUAL REPORT


* 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 June 30, 2022 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
	Prices ($)		observable inputs ($)		unobservable inputs ($)	Total ($)
Common Stocks^**		135,069,689		—	—		135,069,689
Short-Term Securities		1,435,915		—	—		1,435,915
Total:		136,505,604		—	—		136,505,604

** 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.



JUNE 30, 2022		21



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

The Sit ESG Growth Fund Class I shares provided a return of -16.97% during the 12-month period ended June 30, 2022, compared to the return of the MSCI World Index of -14.34%.

Factors that Influenced the Fund’s Performance

Contributing favorably to performance during the 12-month period were the Fund’s holdings in the software & services (Microsoft, and not owning Meta Platforms and PayPal Holdings), retailing (not owning Amazon.com and Netflix), media & entertainment (RELX PLC), and capital goods (BAE Systems plc) sectors. Conversely, the Fund’s lack of exposure to the energy sector and its holdings in the technology hardware & equipment sector (Logitech International SA and Telefona-ktiebolaget LM Ericsson) detracted from performance.

Geographically, the Fund’s exposure to the United Kingdom added value during the 12-month period. However, its holdings in Non-Euroland, Euroland, and North America negatively impacted performance. Specific stock selections in the United Kingdom that drove performance included BAE Systems plc and AstraZeneca plc.

Outlook and Positioning

We believe diversification and an emphasis on quality stocks are appropriate within portfolios, as market volatility will likely persist against a backdrop of tightening Fed policy, decelerating corporate earnings growth, and continued geopolitical tensions. Quality, as we define it, refers to companies with visible earnings growth, strong balance sheets, free cash flow generation, and proven management teams. Notably, the broad-based correction in equity markets during the first half of 2022, driven entirely by multiple compression, has presented opportunities to dynamically upgrade holdings to improve each portfolio’s overall risk-return profile.

We believe in balancing depressed cyclical growth and secular/stable growth sectors. On the cyclical side, technology stocks have been under huge pressure over the past several months, with price-to-earnings multiples contracting by over 50 percent in many cases. Financial stocks, particularly banks, offer solid risk/reward as valuations have collapsed due to economic concerns. We have been adding to energy as supply

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

constraints, driven partly by years of underinvestment, should support a lasting period of elevated energy prices to benefit resource producers. On the defensive/non-cyclical side of the barbell, health care stocks have solid earnings visibility, with far more attractive valuations relative to other “stable” sectors, such as utilities and consumer staples. Defense stocks are also attractive as the Russia-Ukraine conflict has raised the prospect of a sharp uptick in U.S. defense spending and an unprecedented increase in European spending over the next several years.

Roger J.

Sit David A. Brown

Kent L. Johnson

Michael T. Manns

Portfolio Managers

Information on this page is unaudited.



22		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit ESG Growth Fund
							MSCI
							World
	Class I			Class S			Index¹
One Year		-16.97	%		-17.24	%		-14.34	%
Five Year		6.92			6.64			7.67
Since Inception (6/30/16)		7.92			7.64			9.35

PORTFOLIO SUMMARY


Class I:
Net Asset Value 6/30/22:	$14.87	Per Share
Net Asset Value 6/30/21:	$18.17	Per Share
Net Assets:	$3.7	Million
Class S:
Net Asset Value 6/30/22:	$14.74	Per Share
Net Asset Value 6/30/21:	$18.05	Per Share
Net Assets:	$3.6	Million

Weighted Average Market Cap:	$431.6	Billion

TOP HOLDINGS

1. Microsoft Corp.

2. Apple, Inc.

3. Alphabet, Inc. - Class A

4. UnitedHealth Group, Inc.

5. Johnson & Johnson

6. Home Depot, Inc.

7. AstraZeneca, PLC, ADR

8. Goldman Sachs Group, Inc.

9. Iberdrola SA, ADR

10. Allianz SE, ADR

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		23

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit ESG Growth Fund

Investments are grouped by geographic region.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 99.2%

Asia - 8.0%

Japan - 6.8%
Astellas Pharma, Inc.		6,400		99,764
Keyence Corp.		200		68,367
Recruit Holdings Co., Ltd.		3,100		91,278
Sony Group Corp., ADR		1,925		157,407
Terumo Corp.		2,600		78,337


				495,153


Singapore - 1.2%
Singapore Technologies Engineering, Ltd.		31,200		91,626


Europe - 36.0%

France - 1.6%
Faurecia SE ^*		2,358		46,740
Safran SA, ADR		2,750		68,035


				114,775


Germany - 5.9%
adidas AG, ADR		650		57,590
Allianz SE, ADR		8,800		167,464
Deutsche Post AG		1,550		58,053
Infineon Technologies AG		1,225		29,642
Muenchener Rueckversicherungs AG		125		29,369
Siemens AG, ADR		1,775		90,667


				432,785


Ireland - 5.8%
Accenture, PLC		575		159,649
CRH, PLC, ADR		1,200		41,784
Medtronic, PLC		1,225		109,944
Trane Technologies, PLC		875		113,636


				425,013


Spain - 2.3%
Iberdrola SA, ADR		4,050		167,548


Sweden - 1.1%
Telefonaktiebolaget LM Ericsson, ADR		11,175		82,695


Switzerland - 6.4%
Chubb, Ltd.		250		49,145
Logitech International SA		1,550		80,693
Lonza Group AG		185		98,638
Nestle SA, ADR		1,200		139,668
Novartis AG, ADR		1,200		101,436


				469,580


United Kingdom - 12.9%
AstraZeneca, PLC, ADR		2,950		194,907
BAE Systems, PLC, ADR		3,500		142,100
Coca-Cola Europacific Partners, PLC		2,100		108,381
Diageo, PLC, ADR		785		136,684
Entain, PLC ^*		4,300		65,168
HomeServe, PLC		6,525		93,091
RELX, PLC, ADR		4,700		126,618
Smith & Nephew, PLC		5,550		77,525


				944,474



Name of Issuer	Quantity		Fair Value ($)

North America - 55.2%

United States - 55.2%
3M Co.		400		51,764
AbbVie, Inc.		665		101,851
Adobe, Inc. ^*		450		164,727
AES Corp.		3,025		63,555
Alphabet, Inc. - Class A ^*		125		272,408
Apple, Inc.		3,600		492,192
Baxter International, Inc.		1,650		105,980
Broadcom, Inc.		75		36,436
CVS Health Corp.		1,550		143,623
Dexcom, Inc. ^*		1,080		80,492
Ecolab, Inc.		325		49,972
FedEx Corp.		375		85,016
Goldman Sachs Group, Inc.		600		178,212
Home Depot, Inc.		745		204,331
Johnson & Johnson		1,175		208,574
JPMorgan Chase & Co.		1,075		121,056
Lockheed Martin Corp.		185		79,543
Microsoft Corp.		2,000		513,660
NIKE, Inc.		850		86,870
NVIDIA Corp.		1,000		151,590
PepsiCo, Inc.		875		145,827
salesforce.com, Inc. ^*		850		140,284
Starbucks Corp.		1,000		76,390
T Rowe Price Group, Inc.		475		53,965
TJX Cos., Inc.		1,380		77,073
UnitedHealth Group, Inc.		500		256,815
Visa, Inc.		475		93,523


				4,035,729


Total Common Stocks (cost: $5,362,353)				7,259,378


Short-Term Securities - 0.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $52,628)		52,628		52,628


Total Investments in Securities - 99.9% (cost $5,414,981)				7,312,006

Other Assets and Liabilities, net - 0.1%				5,784


Net Assets - 100.0%				$7,317,790

* 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.



24		SIT MUTUAL FUNDS ANNUAL REPORT

A summary of the levels for the Fund’s investments as of June 30, 2022 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
	Prices ($)		observable inputs ($)		unobservable inputs ($)		Total ($)
Common Stocks
France		114,775		—		—		114,775
Germany		432,785		—		—		432,785
Ireland		425,013		—		—		425,013
Japan		495,153		—		—		495,153
Singapore		91,626		—		—		91,626
Spain		167,548		—		—		167,548
Sweden		82,695		—		—		82,695
Switzerland		469,580		—		—		469,580
United Kingdom		944,474		—		—		944,474
United States		4,035,729		—		—		4,035,729
Short-Term Securities		52,628		—		—		52,628
Total:		7,312,006		—		—		7,312,006

See accompanying notes to financial statements.



JUNE 30, 2022		25



Sit Mid Cap Growth Fund

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 $406 million to $74 billion during the 12-month period ended June 30, 2022.

Fund Performance

The Sit Mid Cap Growth Fund’s return during the 12-month period ended June 30, 2022 was -24.70%, compared to a -29.57% return for the Russell Midcap^® Growth Index. The Russell Midcap^® Index decreased -17.30% during the period.

Factors that Influenced the Fund’s Performance

The Fund posted a negative return during the period, but it significantly outperformed its benchmark by +4.87%, as both stock selection and sector allocation were broadly positive across the portfolio. Stock selection across the technology services sector was a key driver of outperformance. Ownership of Aspen Technology and Science Applications International, and an underweight position in Pinterest, augmented the return. Stock selection within the producer manufacturing and retail trade sectors also contributed to performance. Within producer manufacturing, Carlisle Cos., Hubbell, and Dover benefitted from strong pricing power and a rebound in the industrial economy. In retail trade, where many equities underperformed due to concerns over declining consumer sentiment, owning Ulta Beauty and TJX Cos., which are leveraged to secular trends, and not owning Carvana and Wayfair helped performance. Conversely, performance was negatively affected by the Fund’s stock selection in electronic technology, where prices on many higher valuation equities have declined as they begin to price in higher interest rates. The other main factor negatively affecting performance was the Fund’s underweight in energy minerals, where rising commodity prices enabled stocks in this sector to outperform the market.

Outlook and Positioning

With equity valuations beginning to cheapen across most sectors and the market overall, we believe identifying companies that can sustain growth beyond easy pandemic-impacted comparisons will lead to continued stock price appreciation. From a sector standpoint, we advocate a barbell strategy through investments in a combination of traditional and cyclical growth stocks levered to the inflationary economic backdrop. Based on current stock valuations, we think technology and financial stocks offer the most compelling investment opportunities on each side of the barbell. Technology valuation multiples have contracted in many cases as strong earnings growth has lagged underlying equity prices,

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

presenting attractive investment opportunities throughout the sector. With supply chain disruptions continuing to weigh on semiconductor production, technology services companies with sticky business Models and pricing power look particularly attractive. On the other side of the barbell, the financial sector remains the most attractively valued cyclical group and offers a critical hedge should higher interest rates continue to upend the broader equity market. We also find the producer manufacturing sector compelling, particularly companies with construction exposure that should benefit from increased investment activity and potentially a government infrastructure package.

Roger J. Sit

Kent L. Johnson

Robert W. Sit

Portfolio Managers

Information on this page is unaudited.



26		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


			Russell		Russell
	Sit Mid Cap		Midcap^®		Midcap^®
	Growth Fund		Growth Index¹		Index²
One Year		-24.70%		-29.57%		-17.30%
Five Year		6.84		8.88		7.96
Ten Year		8.91		11.50		11.29
Since Inception		10.92		n/a		n/a
(9/2/82)

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 6/30/22:	$	16.96	Per Share
Net Asset Value 6/30/21:	$	25.41	Per Share
Net Assets:	$	164.4	Million
Weighted Average Market Cap:	$	29.3	Billion

TOP 10 HOLDINGS


	1.			Broadcom, Inc.

	2.			Thermo Fisher Scientific, Inc.

	3.			PTC, Inc.

	4.			Arista Networks, Inc.

	5.			Carlisle Cos., Inc.

	6.			Ulta Beauty, Inc.

	7.			Waste Connections, Inc.

	8.			Dexcom, Inc.

	9.			Jacobs Engineering Group, Inc.

	10.			Nexstar Media Group, Inc.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		27

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Mid Cap Growth Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 98.6%

Commercial Services - 3.1%
ASGN, Inc. ^*		13,525		1,220,631
Booz Allen Hamilton Holding Corp.		34,100		3,081,276
Equifax, Inc.		4,300		785,954


				5,087,861


Consumer Durables - 1.5%
Take-Two Interactive Software, Inc. ^*		4,892		599,417
YETI Holdings, Inc. ^*		42,000		1,817,340


				2,416,757


Consumer Non-Durables - 1.3%
Coca-Cola Europacific Partners, PLC		40,700		2,100,527


Consumer Services - 3.1%
Nexstar Media Group, Inc.		20,650		3,363,472
Vail Resorts, Inc.		7,700		1,678,985


				5,042,457


Electronic Technology - 14.5%
Applied Materials, Inc.		28,275		2,572,459
Arista Networks, Inc. ^*		44,850		4,204,239
Broadcom, Inc.		9,100		4,420,871
Ciena Corp. ^*		16,525		755,193
CMC Materials, Inc.		10,825		1,888,854
II-VI, Inc. ^*		24,500		1,248,275
Marvell Technology, Inc.		70,975		3,089,542
MKS Instruments, Inc.		15,100		1,549,713
Monolithic Power Systems, Inc.		5,400		2,073,816
Skyworks Solutions, Inc.		21,400		1,982,496


				23,785,458


Energy Minerals - 1.9%
Oasis Petroleum, Inc.		18,850		2,293,103
Texas Pacific Land Corp.		600		892,812


				3,185,915


Finance - 9.1%
Air Lease Corp.		32,900		1,099,847
American Financial Group, Inc.		7,325		1,016,783
Ameriprise Financial, Inc.		10,000		2,376,800
Arthur J Gallagher & Co.		18,900		3,081,456
Carlyle Group, Inc.		85,700		2,713,262
First Republic Bank		16,550		2,386,510
Intercontinental Exchange, Inc.		25,300		2,379,212


				15,053,870


Health Services - 3.2%
Encompass Health Corp.		47,600		2,667,980
Tenet Healthcare Corp. ^*		50,950		2,677,932


				5,345,912


Health Technology - 14.7%
Align Technology, Inc. ^*		6,025		1,425,937
BioMarin Pharmaceutical, Inc. ^*		23,500		1,947,445
Bio-Techne Corp.		6,400		2,218,496
Cooper Cos, Inc.		4,250		1,330,760
Dexcom, Inc. ^*		48,040		3,580,421
Exact Sciences Corp. ^*		29,650		1,167,913
ICU Medical, Inc. ^*		8,600		1,413,754
Inmode, Ltd. ^*		37,750		845,978



Name of Issuer	Quantity		Fair Value ($)

Insulet Corp. ^*		11,800		2,571,692
Jazz Pharmaceuticals, PLC ^*		5,700		889,257
PerkinElmer, Inc.		6,700		952,874
Sarepta Therapeutics, Inc. ^*		18,275		1,369,894
Thermo Fisher Scientific, Inc.		8,100		4,400,568


				24,114,989


Industrial Services - 6.0%
Cheniere Energy, Inc.		20,000		2,660,600
Jacobs Engineering Group, Inc.		27,800		3,534,214
Waste Connections, Inc.		29,400		3,644,424


				9,839,238


Non-Energy Minerals - 1.3%
Trex Co., Inc. ^*		38,625		2,101,973


Process Industries - 2.6%
Darling Ingredients, Inc. ^*		36,450		2,179,710
Ecolab, Inc.		8,000		1,230,080
Scotts Miracle-Gro Co.		11,350		896,536


				4,306,326


Producer Manufacturing - 8.4%
AGCO Corp.		12,700		1,253,490
AMETEK, Inc.		14,675		1,612,636
Aptiv, PLC ^*		8,800		783,816
Carlisle Cos., Inc.		17,000		4,056,370
Donaldson Co., Inc.		30,000		1,444,200
Dover Corp.		21,875		2,653,875
Hubbell, Inc.		11,000		1,964,380


				13,768,767


Retail Trade - 5.2%
Lululemon Athletica, Inc. ^*		6,300		1,717,443
TJX Cos., Inc.		55,175		3,081,524
Ulta Beauty, Inc. ^*		9,700		3,739,156


				8,538,123


Technology Services - 20.5%
Altair Engineering, Inc. ^*		24,800		1,302,000
ANSYS, Inc. ^*		10,750		2,572,368
Aspen Technology, Inc. ^*		8,358		1,535,197
Atlassian Corp., PLC ^*		16,950		3,176,430
Autodesk, Inc. ^*		14,800		2,545,008
Booking Holdings, Inc. ^*		450		787,045
DocuSign, Inc. ^*		16,075		922,384
Dynatrace, Inc. ^*		65,375		2,578,390
EPAM Systems, Inc. ^*		1,775		523,234
Euronet Worldwide, Inc. ^*		20,075		2,019,344
Globant SA ^*		6,975		1,213,650
GoDaddy, Inc. ^*		27,075		1,883,337
HubSpot, Inc. ^*		7,650		2,299,973
nCino, Inc. ^*		15,400		476,168
Paycom Software, Inc. ^*		7,600		2,128,912
PTC, Inc. ^*		39,600		4,211,064
Science Applications International Corp.		18,150		1,689,765
Splunk, Inc. ^*		20,900		1,848,814


				33,713,083


Transportation - 1.4%
Alaska Air Group, Inc. ^*		17,300		692,865

See accompanying notes to financial statements.



28		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Quantity		Fair Value ($)

Knight-Swift Transportation Holdings, Inc.		36,800		1,703,472

				2,396,337


Utilities - 0.8%
WEC Energy Group, Inc.		12,800		1,288,192


Total Common Stocks (cost: $104,686,149)				162,085,785


Short-Term Securities - 1.5%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $2,476,149)		2,476,149		2,476,149


Total Investments in Securities - 100.1% (cost $107,162,298)				164,561,934

Other Assets and Liabilities, net - (0.1)%				(132,186)


Net Assets - 100.0%				$164,429,748

*	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 June 30, 2022 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
	Prices ($)		observable inputs ($)		unobservable inputs ($)		Total ($)
Common Stocks^**		162,085,785		—		—		162,085,785
Short-Term Securities		2,476,149		—		—		2,476,149
Total:		164,561,934		—		—		164,561,934

**	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.



JUNE 30, 2022		29



Sit Small Cap Dividend Growth Fund Class I and Class S

OBJECTIVE & STRATEGY

The objectives 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 ($25.5 billion as of June 30, 2022). 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 -16.30% return over the 12-month period ended June 30, 2022, compared to the -25.20% return for the Russell 2000^® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 2.03% as of June 30, 2022, compared to a yield of 1.43% for the Russell 2000^® Index.

Factors that Influenced the Fund’s Performance

The Fund posted strong relative returns over the 12-month period, outperforming the Russell 2000^® Index by +8.90%. Outperformance was driven by the Fund’s stock selection and underweight positions in the health technology and technology services sectors and its stock selection in producer manufacturing. Returns for health technology securities were broadly negative due to uncertainty around drug pricing and a lack of mergers and acquisitions. However, the Fund’s holdings, including Steris plc, Atrion, and Halozyme Therapeutics, posted positive returns, owing to positive clinical data results and their ability to make accretive acquisitions. In technology services, while the sector had a -42% return within the benchmark, the Fund’s sector underweight and stock selection resulted in a decline of only -22%. Stock selection in producer manufacturing focused on companies with secular growth opportunities and pricing power, such as Carlisle Cos., Zurn Water Solutions, and Crane Holdings. Conversely, the Fund’s lack of ownership of any securities in the energy minerals sector detracted from returns. Increasing energy prices helped this group to outperform during the period; however, stocks in this space are largely non-dividend-paying.

Outlook and Positioning

Over the past twelve months small capitalization stocks underperformed large capitalization peers, while value closed some of the considerable performance gap with growth that expanded over the prior decade. However, we believe investors will increasingly rotate into quality growth stocks as economic momentum peaks, and year-over-year earnings growth comparisons become more challenging in the second half of 2022. 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 based on our expectation for more muted equity returns. Accordingly, the Fund is overweighted in those sectors where we believe earnings growth will exceed the market average. The Fund’s overweight positions in electronic technology, commercial services, and producer manufacturing all have strong pricing power

HYPOTHETICAL GROWTH OF $10,000

LOGO

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 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.

and stable moats that should help protect margin and growth expectations, even in a slowing economic environment.

Select technology companies should also benefit, as U.S. technology capital spending continues to grow, driven by investments in cloud computing and other emerging technologies. Finally, we believe defensive “bond proxy” areas of the market with compelling relative valuations, including REITs and select utilities, provide a good hedge to market risks, including expectations of interest rate cuts beginning in 2023, and the potential of supply chain bottlenecks, logistical snags, and a new Covid-19 strain that could present risks to the inoculation timetable and cause further economic disruption. Although valuations have declined since the beginning of the year, these areas look attractive due to both their relative valuation and their yield advantage to the market and prevailing U.S. Treasury yields.


Roger J. Sit		Michael T. Manns
Kent L. Johnson		Robert W. Sit
Portfolio Managers

Information on this page is unaudited.



30		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Small Cap Dividend Growth Fund
	Class I			Class S			Russell 2000^® Index¹
One Year		-16.30	%		-16.48	%		-25.20	%
Five Year		5.24			4.98			5.17
Since Inception		5.89			5.63			5.76
(3/31/15)

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 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 6/30/22:	$12.85	Per Share
Net Asset Value 6/30/21:	$16.73	Per Share
Net Assets:	$14.2	Million

Class S:
Net Asset Value 6/30/22:	$12.84	Per Share
Net Asset Value 6/30/21:	$16.72	Per Share
Net Assets:	$4.3	Million

Weighted Average Market Cap:	$6.0	Billion

TOP 10 HOLDINGS

KBR, Inc.

Monolithic Power Systems, Inc.

Carlisle Cos, Inc.

CMC Materials, Inc.

Nexstar Media Group, Inc.

Axis Capital Holdings, Ltd.

Olin Corp.

M&T Bank Corp.

Oasis Petroleum, Inc.

10. Tenet Healthcare Corp.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		31

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Small Cap Dividend Growth Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 98.0%

Commercial Services - 5.2%
Booz Allen Hamilton Holding Corp.		3,200		289,152
Brink’s Co.		1,825		110,796
Colliers International Group, Inc.		2,050		224,906
FTI Consulting, Inc. ^*		850		153,722
World Fuel Services Corp.		8,675		177,490


				956,066


Consumer Durables - 3.6%
BRP, Inc.		1,275		78,425
Helen of Troy, Ltd. ^*		750		121,807
MDC Holdings, Inc.		4,050		130,856
National Presto Industries, Inc.		750		49,230
Thor Industries, Inc.		2,300		171,879
YETI Holdings, Inc. ^*		2,700		116,829


				669,026


Consumer Non-Durables - 2.1%
Crocs, Inc. ^*		1,375		66,921
Sensient Technologies Corp.		2,450		197,372
Wolverine World Wide, Inc.		5,800		116,928


				381,221


Consumer Services - 2.8%
Nexstar Media Group, Inc.		2,250		366,480
Vail Resorts, Inc.		700		152,635


				519,115


Electronic Technology - 8.4%
CMC Materials, Inc.		2,200		383,878
II-VI, Inc. ^*		2,450		124,828
MKS Instruments, Inc.		3,275		336,113
Monolithic Power Systems, Inc.		1,200		460,848
Power Integrations, Inc.		3,400		255,034


				1,560,701


Energy Minerals - 1.8%
Oasis Petroleum, Inc.		2,810		341,837


Finance - 29.5%
Air Lease Corp.		4,225		141,242
American Financial Group, Inc.		1,875		260,269
Artisan Partners Asset Management, Inc.		6,300		224,091
Associated Banc-Corp.		7,175		131,016
Axis Capital Holdings, Ltd.		6,300		359,667
Broadstone Net Lease, Inc.		11,800		242,018
Carlyle Group, Inc.		8,075		255,654
CNO Financial Group, Inc.		14,000		253,260
CubeSmart		5,250		224,280
Essential Properties Realty Trust, Inc.		10,050		215,974
Evercore Partners, Inc.		2,425		227,004
H&E Equipment Services, Inc.		8,700		252,039
Hannon Armstrong Sust. Inf. Cap., Inc.		2,800		106,008
Hanover Insurance Group, Inc.		1,275		186,469
HCI Group, Inc.		2,100		142,296
Hercules Capital, Inc.		13,100		176,719
M&T Bank Corp.		2,174		346,514
Old National Bancorp		20,675		305,783
Physicians Realty Trust		11,250		196,313
Piper Sandler Cos		1,450		164,372



Name of Issuer	Quantity		Fair Value ($)

PotlatchDeltic Corp.		2,810		124,174
Provident Financial Services, Inc.		11,075		246,529
Stifel Financial Corp.		6,000		336,120
STORE Capital Corp.		6,225		162,348
Western Alliance Bancorp		2,775		195,915


				5,476,074


Health Services - 4.2%
Addus HomeCare Corp. ^*		2,575		214,446
Encompass Health Corp.		4,200		235,410
Tenet Healthcare Corp. ^*		6,400		336,384


				786,240


Health Technology - 6.6%
AtriCure, Inc. ^*		3,500		143,010
Atrion Corp.		250		157,215
Bio-Techne Corp.		325		112,658
Halozyme Therapeutics, Inc. ^*		4,350		191,400
ICU Medical, Inc. ^*		975		160,280
Inmode, Ltd. ^*		6,250		140,063
Seres Therapeutics, Inc. ^*		22,800		78,204
STERIS, PLC		975		200,996
Twist Bioscience Corp. ^*		1,425		49,818


				1,233,644


Industrial Services - 4.8%
EMCOR Group, Inc.		2,400		247,104
KBR, Inc.		10,775		521,402
MYR Group, Inc. ^*		1,400		123,382


				891,888


Non-Energy Minerals - 2.6%
AZEK Co., Inc. ^*		5,700		95,418
Commercial Metals Co.		3,950		130,745
Eagle Materials, Inc.		1,575		173,156
MP Materials Corp. ^*		2,325		74,586


				473,905


Process Industries - 5.4%
Avient Corp.		2,125		85,170
Huntsman Corp.		4,650		131,828
Neenah, Inc.		2,525		86,203
Olin Corp.		7,625		352,885
Scotts Miracle-Gro Co.		1,300		102,687
Silgan Holdings, Inc.		5,800		239,830


				998,603


Producer Manufacturing - 10.8%
AGCO Corp.		1,350		133,245
AZZ, Inc.		3,650		148,993
Belden, Inc.		3,175		169,132
Carlisle Cos, Inc.		1,650		393,706
Crane Holdings Co.		3,275		286,759
Donaldson Co., Inc.		3,275		157,659
EnPro Industries, Inc.		2,050		167,956
Hubbell, Inc.		1,225		218,761
Lincoln Electric Holdings, Inc.		1,725		212,796
Regal Rexnord Corp.		1,042		118,288


				2,007,295


Retail Trade - 2.1%
Boot Barn Holdings, Inc. ^*		2,800		192,948

See accompanying notes to financial statements.



32		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Quantity		Fair Value ($)

Casey’s General Stores, Inc.		1,025		189,605


				382,553


Technology Services - 2.7%
Altair Engineering, Inc. ^*		800		42,000
Globant SA ^*		1,625		282,750
ManTech International Corp.		1,275		121,699
Science Applications International Corp.		500		46,550


				492,999


Transportation - 3.5%
Knight-Swift Transportation Holdings, Inc.		4,925		227,978
Marten Transport, Ltd.		8,450		142,129
TFI International, Inc.		3,475		278,973


				649,080


Utilities - 1.9%
Black Hills Corp.		3,400		247,418
Spire, Inc.		1,325		98,540


				345,958


Total Common Stocks (cost: $15,322,176)				18,166,205


Short-Term Securities - 1.9%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $355,277)		355,277		355,277


Total Investments in Securities - 99.9% (cost $15,677,453)				18,521,482

Other Assets and Liabilities, net - 0.1%				11,234


Net Assets - 100.0%				$18,532,716

^*	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 June 30, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities
	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)
Common Stocks^**		18,166,205		—		—		18,166,205
Short-Term Securities		355,277		—		—		355,277
Total:		18,521,482		—		—		18,521,482

**	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.



JUNE 30, 2022		33



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^® measured at the end of the previous twelve months ($25.5 billion as of June 30, 2022). 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 -25.57% over the 12-month period ended June 30, 2022. This compares to the return of -33.43% for the Russell 2000^® Growth Index and a -25.20% decline for the Russell 2000^® Index.

Factors that Influenced the Fund’s Performance

During the 12-month period ending June 30, 2022, the Fund had a strong relative return, outperforming the Russell 2000^® Growth Index by +7.86%. Several sectors played a part in the outperformance, with technology playing a major role. Although returns for technology services securities were broadly negative due largely to rising interest rates and concerns around decelerating growth, the Fund’s holdings, including Aspen Technology, Globant SA, and Paycom Software, outperformed the market, owing to resilient business models and strong pricing power. An overweight position as well as stock selection in the transportation sector also augmented performance, as companies, such as Knight-Swift Transportation Holdings, Marten Transport Ltd, and TFI International, benefitted from strong pricing power, especially in the second half of 2021. In addition, stock selection in the producer manufacturing, commercial services, and electronic technology sectors, and a significant underweight in the health technology sector, benefitted returns. Conversely, the key detractor to the Fund’s performance during the period was its lack of ownership of any securities in the energy minerals sector, where equities rallied strongly in the first half of 2022, as tight commodity markets drove prices and profitability higher across the group.

Outlook and Positioning

During the period, the Russell 2000 Growth Index lagged larger capitalization benchmarks significantly mainly due to the subpar performance of small capitalization stocks within the healthcare and technology services sectors. Following three exceptional years from 2019 to 2021, equity returns in 2022 have been negative, as tightening monetary policy challenges equity valuations and corporate earnings growth begins to decelerate, with the potential to turn negative later in the year. In addition, there are numerous crosscurrents (e.g., supply chain disruptions, interest rates, midterm elections, geopolitics) to maintain the recent increase in market volatility. In our view, this backdrop presents an opportunity for stock pickers, following a period where virtually all stocks were buoyed by unprecedented monetary policy easing. We believe

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

investors will be rewarded for identifying companies that can sustain earnings growth and their valuations, even as cyclical conditions moderate. Firms with pricing power will continue to fare particularly well, even if inflation pressures begin to subside. The Fund is broadly overweight technology services stocks, as we view these holdings as well-positioned to benefit from secular trends, such as increasing 5G adoption and the growth of the internet of things, in addition to having deep, competitive moats that should allow for pricing power. The Fund is also focused on companies within the producer manufacturing and industrial services industries, where the inflationary environment (even if it decelerates) should help pricing and margin expansion. In addition, these companies are poised to benefit from pent-up demand stemming from years of underinvestment in infrastructure and from an increase in government spending.

Roger J. Sit Kent L. Johnson

Robert W. Sit

Portfolio Managers

Information on this page is unaudited.



34		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Small Cap		Russell 2000^®		Russell 2000^®
	Growth Fund		Growth Index¹		Index ²
One Year		-25.57%		-33.43%		-25.20%
Five Year		7.14		4.80		5.17
Ten Year		8.10		9.30		9.35
Since Inception		9.57		7.45		8.68
(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. Return 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.

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 6/30/22:	$52.41	Per Share
Net Asset Value 6/30/21:	$82.14	Per Share
Net Assets:	$98.4	Million
Weighted Average Market Cap:	$8.5	Billion

TOP 10 HOLDINGS

Olin Corp.

Monolithic Power Systems, Inc.

Waste Connections, Inc.

KBR, Inc.

Nexstar Media Group, Inc.

CMC Materials, Inc.

Globant SA

PTC, Inc.

TFI International, Inc.

10.

Tenet Healthcare Corp.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		35

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Small Cap Growth Fund

Investments are grouped by economic sectors.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 95.0%

Commercial Services - 6.0%
ASGN, Inc. ^*		19,450		1,755,363
Booz Allen Hamilton Holding Corp.		20,000		1,807,200
Colliers International Group, Inc.		12,700		1,393,317
FTI Consulting, Inc. ^*		5,250		949,462


				5,905,342


Consumer Durables - 3.8%
BRP, Inc.		8,150		501,306
Helen of Troy, Ltd. ^*		4,875		791,749
Take-Two Interactive Software, Inc. ^*		4,075		499,310
Thor Industries, Inc.		11,200		836,976
YETI Holdings, Inc. ^*		25,325		1,095,813


				3,725,154


Consumer Services - 2.9%
Nexstar Media Group, Inc.		12,725		2,072,648
Vail Resorts, Inc.		3,550		774,077


				2,846,725


Electronic Technology - 9.9%
Arista Networks, Inc. ^*		15,600		1,462,344
Ciena Corp. ^*		14,150		646,655
CMC Materials, Inc.		11,650		2,032,809
II-VI, Inc. ^*		20,075		1,022,821
MKS Instruments, Inc.		13,400		1,375,242
Monolithic Power Systems, Inc.		5,675		2,179,427
Skyworks Solutions, Inc.		10,800		1,000,512


				9,719,810


Energy Minerals - 1.5%
Oasis Petroleum, Inc.		11,975		1,456,759


Finance - 11.0%
Air Lease Corp.		27,625		923,504
American Financial Group, Inc.		4,800		666,288
Artisan Partners Asset Management, Inc.		31,825		1,132,015
Axis Capital Holdings, Ltd.		22,975		1,311,643
First Republic Bank		5,200		749,840
H&E Equipment Services, Inc.		53,175		1,540,480
Hannon Armstrong Sust. Inf. Cap., Inc.		15,975		604,813
Physicians Realty Trust		61,600		1,074,920
Stifel Financial Corp.		11,800		661,036
SVB Financial Group ^*		2,800		1,105,972
Western Alliance Bancorp		14,300		1,009,580


				10,780,091


Health Services - 4.4%
Addus HomeCare Corp. ^*		16,850		1,403,268
Encompass Health Corp.		19,675		1,102,784



Name of Issuer	Quantity		Fair Value ($)

Tenet Healthcare Corp. ^*		34,900		1,834,344


				4,340,396


Health Technology - 12.2%
908 Devices, Inc. ^*		32,675		672,778
Align Technology, Inc. ^*		2,150		508,840
AtriCure, Inc. ^*		23,225		948,974
Bio-Techne Corp.		3,700		1,282,568
Exact Sciences Corp. ^*		12,425		489,421
Halozyme Therapeutics, Inc. ^*		26,375		1,160,500
ICU Medical, Inc. ^*		6,875		1,130,181
Insulet Corp. ^*		3,525		768,239
PerkinElmer, Inc.		7,000		995,540
Sarepta Therapeutics, Inc. ^*		13,400		1,004,464
Seres Therapeutics, Inc. ^*		122,425		419,918
STAAR Surgical Co. ^*		17,500		1,241,275
STERIS, PLC		6,675		1,376,051


				11,998,749


Industrial Services - 6.6%
EMCOR Group, Inc.		14,200		1,462,032
KBR, Inc.		43,500		2,104,965
MYR Group, Inc. ^*		8,675		764,528
Waste Connections, Inc.		17,575		2,178,597


				6,510,122


Non-Energy Minerals - 3.1%
AZEK Co., Inc. ^*		24,200		405,108
Eagle Materials, Inc.		10,300		1,132,382
MP Materials Corp. ^*		13,175		422,654
Trex Co., Inc. ^*		20,825		1,133,296


				3,093,440


Process Industries - 3.5%
Avient Corp.		13,200		529,056
Olin Corp.		48,175		2,229,539
Scotts Miracle-Gro Co.		3,700		292,263
Vital Farms, Inc. ^*		41,675		364,656


				3,415,514


Producer Manufacturing - 8.9%
AZZ, Inc.		22,575		921,511
Belden, Inc.		20,275		1,080,049
Carlisle Cos, Inc.		2,200		524,942
Crane Holdings Co.		19,075		1,670,207
Donaldson Co., Inc.		20,850		1,003,719
Hubbell, Inc.		6,400		1,142,912
Lincoln Electric Holdings, Inc.		8,900		1,097,904
Regal Rexnord Corp.		6,755		766,828

See accompanying notes to financial statements.



36		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Quantity		Fair Value ($)

Zurn Water Solutions Corp.		19,325		526,413


				8,734,485


Retail Trade - 3.0%
Boot Barn Holdings, Inc. ^*		14,925		1,028,482
Casey’s General Stores, Inc.		4,300		795,414
Ulta Beauty, Inc. ^*		3,050		1,175,714


				2,999,610


Technology Services - 12.6%
Altair Engineering, Inc. ^*		29,983		1,574,108
ANSYS, Inc. ^*		2,950		705,906
Aspen Technology, Inc. ^*		5,281		970,014
Euronet Worldwide, Inc. ^*		12,050		1,212,109
Globant SA ^*		11,350		1,974,900
GoDaddy, Inc. ^*		15,025		1,045,139
HubSpot, Inc. ^*		3,600		1,082,340
Paycom Software, Inc. ^*		6,225		1,743,747
PTC, Inc. ^*		17,600		1,871,584
Science Applications International Corp.		2,700		251,370


				12,431,217


Transportation - 5.1%
Alaska Air Group, Inc. ^*		11,500		460,575
Golar LNG, Ltd. ^*		23,850		542,588
Knight-Swift Transportation Holdings, Inc.		26,650		1,233,628
Marten Transport, Ltd.		57,175		961,683
TFI International, Inc.		22,925		1,840,419


				5,038,893


Utilities - 0.5%

Spire, Inc.		7,100		528,027


Total Common Stocks (cost: $62,996,077)				93,524,334


Short-Term Securities - 1.2%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $1,144,177)		1,144,177		1,144,177


Total Investments in Securities - 96.2% (cost $64,140,254)				94,668,511

Other Assets and Liabilities, net - 3.8%				3,775,482


Net Assets - 100.0%				$98,443,993

*	Non-income producing security.

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

See accompanying notes to financial statements.



JUNE 30, 2022		37

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Small Cap Growth Fund (Continued)

A summary of the levels for the Fund’s investments as of June 30, 2022 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
	Prices ($)		observable inputs ($)		unobservable inputs ($)		Total ($)
Common Stocks^**		93,524,334		—		—		93,524,334
Short-Term Securities		1,144,177		—		—		1,144,177
Total:		94,668,511		—		—		94,668,511

**	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.



38		SIT MUTUAL FUNDS ANNUAL REPORT

[This page is intentionally left blank.]



JUNE 30, 2022		39



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 Developing Markets Growth 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 posted a return of -23.41% during the 12-month period ended June 30, 2022, compared to a -17.77% return for the MSCI EAFE Index.

Factors that Influenced the Fund’s Performance

International stocks sold off over the past twelve months, largely in sympathy with the U.S. market due to high global inflation driven mostly by soaring energy costs, impacts of a hawkish Federal Reserve, Covid-19 flare-ups, and geopolitical crises, particularly the Russia-Ukraine conflict. The sectors that detracted from Fund performance the most were technology hardware & equipment (owning Logitech International SA), energy (sector underweight), and pharmaceuticals (not owning Novo Nordisk, CSPC Pharmaceutical, and Dechra Pharmaceuticals plc). Contributing favorably to performance were the Fund’s holdings in the capital goods, health care, and commercial & professional services sectors.

Geographically, stock selection in Non-Euroland, Asia Pacific ex-Japan, and Euroland hurt results, while allocation to North America, United Kingdom, and cash added to performance.

Outlook and Positioning

Global economic growth is slowing, as central banks have continued their tightening cycle to restrain inflation. This compounds existing risks from the knock-on effects of the war in Ukraine, Covid-19 lock-downs in China, the negative impact of the stronger U.S. dollar on export demand, a hawkish Federal Reserve, and high energy prices. Recession perils are rising in the Euro Area, as high energy costs spill into core inflation, consumers curb nonessential spending, export demand slows, and financial conditions tighten. Moreso, the region could face a full-blown energy crisis, if Russia continues to weaponize its natural gas exports. Japan’s economic growth outlook is challenged, as headwinds of slowing global growth and ongoing supply chain shortages crimp export growth, while rising domestic prices are starting to sap consumers’ purchasing power. In China, economic activity improved modestly in May, after a deep contraction in April when Shanghai was in full lock-down and Covid-19-induced restrictions disrupted supply chains. The Emerging Market economies face similar challenges, but headwinds are likely peaking, and we expect a better outlook in 2023 as supply shocks lessen and inflation eases.

As to international strategy, we prefer Asia ex-Japan equities, primarily

HYPOTHETICAL GROWTH OF $10,000

LOGO

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. 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. It is not possible to invest directly in an index. This is the Fund’s primary index.

in China, South Korea, Singapore, and India due to better economic and earnings growth prospects. We are cautiously optimistic about China on an improving economy and a positive policy backdrop, yet volatility could persist, given ongoing Covid-19 uncertainties, Fed tightening, and geopolitical tensions. In China, we like the internet names, reopening trades, and carbon-neutral themed names. Our South Korea, Singapore, and India holdings are a balanced portfolio of cyclical and growth stocks. These names include economic beneficiaries, such as financials, e-commerce, and Covid-19 reopening plays, in addition to technology and material stocks, which will benefit from the secular global transition to renewable energy. Our underweight in Europe is due to rising recession risks and a potential energy crisis. Japan’s underweight stems from the key challenges of a rigid labor market, an aging population, and elevated national debt levels. Our Europe and Japan stocks are in secular/defensive growth companies with pricing power, visible earnings growth, and overseas exposure.

Roger J. Sit

Portfolio Manager

Information on this page is unaudited.



40		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit International Growth Fund			MSCI EAFE Index¹
One Year		-23.41	%		-17.77	%
Five Year		2.55			2.20
Ten Year		4.54			5.40
Since Inception (11/1/91)		3.75			4.84

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 International Growth Fund	MSCI EAFE Index
Europe	58.6%	64.1%
Asia/Pacific	30.2	35.1
North America	8.3	—
Latin America	1.6	—
Africa/Middle East	—	0.8
Cash & Other Net Assets	1.3	—

Based on net assets as of June 30, 2022.

PORTFOLIO SUMMARY


Net Asset Value 6/30/22:	$	17.78	Per Share
Net Asset Value 6/30/21:	$	23.27	Per Share
Net Assets:	$	22.5	Million
Weighted Average Market Cap:	$	112.1	Billion

TOP 10 HOLDINGS

Schneider Electric SE

AstraZeneca, PLC, ADR

BAE Systems, PLC

Sony Group Corp., ADR

Broadcom, Inc.

ASML Holding NV

Diageo, PLC, ADR

Dassault Systemes SE

Iberdrola SA

10.

London Stock Exchange Group, PLC

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		41

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit International Growth Fund

Investments are grouped by geographic region.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 97.2%

Asia - 28.7%

Australia - 6.5%
Atlassian Corp., PLC ^*		1,825		342,005
BHP Group, Ltd., ADR		4,200		235,956
Lynas Rare Earths, Ltd. ^*		35,775		215,576
Macquarie Group, Ltd.		2,600		295,238
Rio Tinto, PLC, ADR		4,400		268,400
Westpac Banking Corp.		4,425		59,560
Woodside Energy Group, Ltd., ADR		1,517		32,706


				1,449,441


China/Hong Kong - 8.1%
AIA Group, Ltd.		32,200		349,010
Baidu, Inc., ADR ^*		1,575		234,250
Budweiser Brewing Co. APAC, Ltd.		21,500		64,389
CSPC Pharmaceutical Group, Ltd.		262,960		261,057
ENN Energy Holdings, Ltd.		18,400		302,258
JD.com, Inc.		385		12,403
Ping An Insurance Group Co. of China, Ltd.		33,500		227,765
Tencent Holdings, Ltd.		8,100		365,836


				1,816,968


Japan - 9.0%
Astellas Pharma, Inc.		17,700		275,910
Keyence Corp.		1,000		341,834
Recruit Holdings Co., Ltd.		11,200		329,776
Shiseido Co., Ltd.		4,100		164,568
Sony Group Corp., ADR		6,300		515,151
Terumo Corp.		13,100		394,699


				2,021,938


Singapore - 2.5%
DBS Group Holdings, Ltd.		15,600		333,267
Singapore Technologies Engineering, Ltd.		78,400		230,240


				563,507


South Korea - 2.6%
LG Chem, Ltd.		975		387,477
Samsung Electronics Co., Ltd., GDR		185		201,835


				589,312

Europe - 58.6%

France - 8.8%
AXA SA		11,750		266,708
Dassault Systemes SE		13,125		482,984
Elis SA		8,125		108,135
Faurecia SE ^*		10,366		205,475
Safran SA		3,200		315,928
Schneider Electric SE		5,000		591,568


				1,970,798


Germany - 5.5%
Allianz SE		2,250		429,419
Deutsche Post AG		6,550		245,322
Infineon Technologies AG		5,700		137,924
Muenchener Rueckversicherungs AG		435		102,203
Siemens AG		3,100		315,411


				1,230,279



Name of Issuer	Quantity		Fair Value ($)

Ireland - 3.4%
Accenture, PLC		550		152,707
CRH, PLC, ADR		4,800		167,136
Linde, PLC		500		143,765
STERIS, PLC		1,450		298,917


				762,525


Netherlands - 3.1%
ASML Holding NV		1,025		487,777
Stellantis NV		16,375		202,395


				690,172


Spain - 3.7%
Cellnex Telecom SA		9,442		366,402
Iberdrola SA		45,900		476,007


				842,409


Sweden - 2.3%
Hexagon AB		26,600		276,278
Telefonaktiebolaget LM Ericsson, ADR		32,350		239,390


				515,668


Switzerland - 12.1%
Interroll Holding AG		75		168,125
Logitech International SA		6,650		346,199
Lonza Group AG		590		314,576
Nestle SA		3,600		420,242
Novartis AG		1,950		165,147
Partners Group Holding AG		490		441,521
Roche Holding AG		1,350		450,471
TE Connectivity, Ltd.		1,100		124,465
Zurich Insurance Group AG		680		295,748


				2,726,494


United Kingdom - 19.7%
Ashtead Group, PLC		5,500		230,246
AstraZeneca, PLC, ADR		8,300		548,381
BAE Systems, PLC		52,600		531,577
Coca-Cola Europacific Partners, PLC		5,400		278,694
Compass Group, PLC		5,925		121,170
Dechra Pharmaceuticals, PLC		6,300		265,194
Diageo, PLC, ADR		2,775		483,183
Entain, PLC ^*		13,925		211,039
London Stock Exchange Group, PLC		5,100		473,812
Reckitt Benckiser Group, PLC		3,100		232,833
RELX, PLC		12,275		332,138
Shell, PLC, ADR		6,850		358,186
Smith & Nephew, PLC		25,250		352,705


				4,419,158


Latin America - 1.6%

Argentina - 1.6%
Globant SA ^*		2,050		356,700


North America - 8.3%

Canada - 4.0%
Alimentation Couche-Tard, Inc.		7,400		288,653
BRP, Inc.		1,675		103,087
Colliers International Group, Inc.		1,600		175,536

See accompanying notes to financial statements.



42		SIT MUTUAL FUNDS ANNUAL REPORT



Name of Issuer	Quantity		Fair Value ($)
Waste Connections, Inc.		2,750		340,890


				908,166


United States - 4.3%
Broadcom, Inc.		1,025		497,955
Euronet Worldwide, Inc. ^*		1,775		178,547
Mondelez International, Inc.		4,800		298,032


				974,534


Total Common Stocks (cost: $17,396,266)				21,838,069


Investment Companies 1.5%
iShares MSCI India ETF (cost $258,117)		8,700		342,519


Short-Term Securities - 0.8%
Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $170,760)		170,760		170,760


Total Investments in Securities - 99.5% (cost $17,825,143)				22,351,348

Other Assets and Liabilities, net - 0.5%				102,581


Net Assets - 100.0%				$22,453,929

*	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.



JUNE 30, 2022		43

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit International Growth Fund (Continued)

A summary of the levels for the Fund’s investments as of June 30, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities
	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)

Common Stocks
Argentina		356,700		—		—		356,700
Australia		1,449,441		—		—		1,449,441
Canada		908,166		—		—		908,166
China/Hong Kong		1,816,968		—		—		1,816,968
France		1,970,798		—		—		1,970,798
Germany		1,230,279		—		—		1,230,279
Ireland		762,525		—		—		762,525
Japan		2,021,938		—		—		2,021,938
Netherlands		690,172		—		—		690,172
Singapore		563,507		—		—		563,507
South Korea		589,312		—		—		589,312
Spain		842,409		—		—		842,409
Sweden		515,668		—		—		515,668
Switzerland		2,726,494		—		—		2,726,494
United Kingdom		4,419,158		—		—		4,419,158
United States		974,534		—		—		974,534
Investment Companies		342,519		—		—		342,519
Short-Term Securities		170,760		—		—		170,760


Total:		22,351,348		—		—		22,351,348

See accompanying notes to financial statements.



44		SIT MUTUAL FUNDS ANNUAL REPORT

[This page is intentionally left blank.]



JUNE 30, 2022		45



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 returned -26.19% during the 12-month period ended June 30, 2022, compared to the MSCI Emerging Markets Index return of -27.20%.

Factors that Influenced the Fund’s Performance

The Fund slightly outperformed its benchmark during a time replete with risks from the Russia-Ukraine conflict, high inflation, slowdown in China, and Covid-19 flare-ups. Contributing to outperformance during the 12-month period were the Fund’s holdings in Funds (iShares MSCI India ETF), pharmaceuticals (not owning Wuxi Biologics Cayman), and semiconductors (Broadcom). On the negative side, sectors that hurt performance were software & services (PagSeguro Digital Ltd and Sea Ltd), banks (not owning Al Rajhi Bank and National Bank of Kuwait S.A.K.), and materials (LG Chem Ltd).

Geographically, holdings in the regions of Non-Euroland (no exposure), Asia/Pacific ex-Japan (iShares MSCI India ETF, DBS Group Holdings Ltd, and Broadcom) and cash added value, while Africa/Mideast (not owning National Bank of Kuwait S.A.K. and Saudi Arabian Oil Co.), Latin America (PagSeguro Digital Ltd), and North America (Skyworks Solutions) contributed negatively. By country, Hong Kong, Russia, and Singapore helped performance, and China, India, and Brazil detracted.

Outlook and Positioning

Global economic growth is slowing, as central banks have continued their tightening cycle to control inflation. This compounds existing risks from the knock-on effects of the war in Ukraine, Covid-19 lockdowns in China, the negative impact of the stronger U.S. dollar on export demand, a hawkish Federal Reserve, and high energy prices. China’s economic activity improved modestly in May, after a deep contraction in April, when Shanghai was in full lockdown and Covid-19-induced restrictions disrupted supply chains. Growth is set to improve in June, on reopening of Shanghai. While rolling lockdowns may still happen under China’s zero-Covid-19 policy, a repeat of a Shanghai-style lock-down is less likely, given the government’s faster response to Covid-19 outbreaks. China is also easing monetary policy along with providing fiscal stimulus via infrastructure spending and auto demand incentives to help growth. The Emerging Market economies face similar challenges, but headwinds are likely peaking and we expect a better outlook in

HYPOTHETICAL GROWTH OF $10,000

LOGO

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.

2023, as supply shocks lessen and inflation eases. Moreso, any recessions will likely be mild, as global developed markets’ economies are healthier (e.g., balance sheets, consumer savings, stronger labor market) and China’s economy is recovering. Regarding developing markets strategy, we are positive on equities in China, South Korea, Singapore, India, and Mexico due to better economic and earnings growth prospects. We are cautiously optimistic about China on an improving economy and a positive policy backdrop, yet volatility could continue, given ongoing Covid-19 uncertainties, Fed tightening, and geopolitical tensions. In China, we like the internet names, reopening trades, and carbon-neutral themed names. Our South Korea, Singapore, India, and Mexico holdings are a balanced portfolio of cyclical and growth stocks, plus consumer staples. These names include economic beneficiaries, such as financials, e-commerce, gaming, and Covid-19 reopening plays, in addition to technology and material stocks, which will benefit from the secular global transition to renewable energy.

Roger J. Sit Raymond E. Sit

Portfolio Managers

Information on this page is unaudited.



46		SIT MUTUAL FUNDS ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of June 30, 2022


	Sit Developing Markets Growth Fund			MSCI Emerging Markets Index¹
One Year		-26.19	%		-27.20	%
Five Year		1.78			-0.20
Ten Year		1.98			0.66
Since Inception (7/1/94)		3.59			2.66

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.

FUND DIVERSIFICATION BY- REGION


	Sit Developing Markets Growth Fund	MSCI Emerging Markets Index
Asia/Pacific	76.8%	79.7%
Africa/Middle East	7.7	11.0
Latin America	7.1	7.8
North America	5.3	—
Europe	1.2	1.5
Cash & Other Net Assets	1.9	—

Based on net assets as of June 30, 2022.

PORTFOLIO SUMMARY


Net Asset Value 6/30/22:	$15.46	Per Share
Net Asset Value 6/30/21:	$21.40	Per Share
Net Assets:	$9.4	Million
Weighted Average Market Cap:	$237.7	Billion

TOP 10 HOLDINGS

Taiwan Semiconductor Co.

Samsung Electronics Co., Ltd.

iShares MSCI India ETF

Tencent Holdings, Ltd.

ENN Energy Holdings, Ltd.

DBS Group Holdings, Ltd.

Alibaba Group Holding, Ltd., ADR

HDFC Bank, Ltd., ADR

Broadcom, Inc.

10.

Hong Kong Exchanges & Clearing, Ltd.

Based on net assets as of June 30, 2022.

SECTOR ALLOCATION

LOGO

Based on net assets as of June 30, 2022.

Information on this page is unaudited.



JUNE 30, 2022		47

SCHEDULE OF INVESTMENTS

June 30, 2022

Sit Developing Markets Growth Fund

Investments are grouped by geographic region.



Name of Issuer	Quantity		Fair Value ($)

Common Stocks - 93.7%

Africa/Middle East - 7.7%

Israel - 2.1%
NICE, Ltd., ADR *		1,050	202,072


South Africa - 5.6%
Bid Corp., Ltd.		13,200	248,937
Bidvest Group, Ltd.		5,525	71,178
Naspers, Ltd.		1,425	207,392


			527,507


Asia - 72.4%

Australia - 2.5%
Atlassian Corp., PLC *		450	84,330
Rio Tinto, PLC, ADR		2,475	150,975


			235,305


China/Hong Kong - 36.2%
AIA Group, Ltd.		21,400	231,951
Alibaba Group Holding, Ltd., ADR ^*		2,700	306,936
Baidu, Inc., ADR *		1,100	163,603
Budweiser Brewing Co. APAC, Ltd.		46,000	137,763
China International Capital Corp., Ltd.		58,400	124,439
China Mengniu Dairy Co., Ltd.		43,000	214,540
China Petroleum & Chemical Corp., ADR		1,400	62,706
CSPC Pharmaceutical Group, Ltd.		230,400	228,732
ENN Energy Holdings, Ltd.		19,800	325,256
GDS Holdings, Ltd., ADR *		1,000	33,390
Hong Kong Exchanges & Clearing, Ltd.		5,100	250,879
JD.com, Inc.		542	17,462
JD.com, Inc., ADR		3,600	231,192
LK Technology Holdings, Ltd.		47,500	90,801
Meituan*		6,000	148,494
Ping An Insurance Group Co. of China, Ltd.		19,900	135,299
Sands China, Ltd. *		42,400	101,153
Sinopharm Group Co., Ltd.		44,900	108,834
Tencent Holdings, Ltd.		8,200	370,352
Trip.com Group, Ltd., ADR ^*		4,450	122,153


			3,405,935


India - 3.1%

HDFC Bank, Ltd., ADR		5,350	294,036


Indonesia - 2.6%
Astra International Tbk PT		176,000	78,268
XL Axiata Tbk PT		948,800	165,590


			243,858


Singapore - 5.7%
DBS Group Holdings, Ltd.		14,500	309,768
Flex, Ltd. *		4,000	57,880
Sea, Ltd, ADR *		600	40,116
Singapore Technologies Engineering, Ltd.		44,000	129,216


			536,980


South Korea - 10.6%
LG Chem, Ltd.		575	228,512
NAVER Corp.		450	83,179
Samsung Electronics Co., Ltd.		10,925	479,610



Name of Issuer	Quantity		Fair Value ($)

Shinhan Financial Group Co., Ltd.		7,200	205,453


			996,754


Taiwan - 10.2%
Cathay Financial Holding Co., Ltd.		82,085	140,519
Hon Hai Precision Industry Co., Ltd., GDR		23,700	173,484
Taiwan Semiconductor Co.		37,482	600,045
Taiwan Semiconductor Co., ADR		525	42,919


			956,967


Thailand - 1.5%

Bangkok Bank PCL		36,500	137,823


Europe - 1.2%

Netherlands - 1.2%

Prosus NV		1,700	111,309


Latin America - 7.1%

Argentina - 2.2%

Globant SA *		1,175	204,450


Brazil - 2.0%
Ambev SA, ADR		21,575	54,153
Banco Bradesco SA		30,350	99,689
Lojas Renner SA		8,130	35,062


			188,904


Chile - 0.8%

Banco Santander Chile, ADR		4,700	76,563


Peru - 2.1%

Southern Copper Corp.		3,900	194,259


North America - 5.3%

Mexico - 1.7%
Fomento Economico Mexicano, ADR		1,575	106,297
Grupo Bimbo SAB de CV		16,000	52,282


			158,579


United States - 3.6%
Broadcom, Inc.		550	267,195
Skyworks Solutions, Inc.		775	71,796


			338,991


Total Common Stocks (cost: $7,076,142)			8,810,292


Investment Companies 4.4%

iShares MSCI India ETF (cost $312,486)		10,400	409,447


Short-Term Securities - 1.7%

Fidelity Inst. Money Mkt. Gvt. Fund, 1.21% (cost $160,432)		160,432	160,432


Total Investments in Securities - 99.8% (cost $7,549,060)			9,380,171

Other Assets and Liabilities, net - 0.2%			19,450


Net Assets - 100.0%			$9,399,621

See accompanying notes to financial statements.



48		SIT MUTUAL FUNDS ANNUAL REPORT

*	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.

A summary of the levels for the Fund’s investments as of June 30, 2022 is as follows (see Note 2-significant accounting policies in the notes to financial statements):


	Investment in Securities
	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)
Common Stocks
Argentina		204,450		—		—		204,450
Australia		235,305		—		—		235,305
Brazil		188,904		—		—		188,904
Chile		76,563		—		—		76,563
China/Hong Kong		3,405,935		—		—		3,405,935
India		294,036		—		—		294,036
Indonesia		243,858		—		—		243,858
Israel		202,072		—		—		202,072
Mexico		158,579		—		—		158,579
Netherlands		111,309		—		—		111,309
Peru		194,259		—		—		194,259
Singapore		536,980		—		—		536,980
South Africa		527,507		—		—		527,507
South Korea		996,754		—		—		996,754
Taiwan		956,967		—		—		956,967
Thailand		137,823		—		—		137,823
United States		338,991		—		—		338,991
Investment Companies		409,447		—		—		409,447
Short-Term Securities		160,432		—		—		160,432

Total:		9,380,171		—		—		9,380,171

See accompanying notes to financial statements.



JUNE 30, 2022		49

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2022


	Sit Balanced Fund		Sit Dividend Growth Fund		Sit Global Dividend Growth Fund

ASSETS
Investments in securities, at identified cost		$39,523,649		$182,236,417		$26,496,240


Investments in securities, at fair value - see accompanying schedule for detail		$48,033,168		$212,535,746		$40,388,304
Cash in bank on demand deposit		—		—		—
Accrued interest and dividends receivable		134,949		297,544		92,501
Receivable for investment securities sold		—		2,248,686		—
Receivable for Fund shares sold		1,145		148,221		1,795


Total assets		48,169,262		215,230,197		40,482,600


LIABILITIES
Payable for investment securities purchased		—		2,124,552		—
Payable for Fund shares redeemed		10,467		50,325		250
Accrued investment management fees and advisory fees		32,367		125,179		33,887
Accrued Rule 12b-1 fees (Class S)		—		4,624		710


Total liabilities		42,834		2,304,680		34,847


Net assets applicable to outstanding capital stock		$48,126,428		$212,925,517		$40,447,753


Net assets consist of:
Capital (par value and paid-in surplus)		$37,938,505		$165,780,126		$26,468,240
Total distributable earnings (loss), including unrealized appreciation (depreciation)		10,187,923		47,145,391		13,979,513


		$48,126,428		$212,925,517		$40,447,753


Outstanding shares:
Common Shares (Class I)^*		1,791,530		13,366,321		1,874,191


Common Shares (Class S)^*		—		1,543,817		171,751


Net assets applicable to outstanding shares:
Common Shares (Class I)^*		$48,126,428		$191,010,200		$37,056,971


Common Shares (Class S)^*		—		21,915,317		3,390,782


Net asset value per share of outstanding capital stock:
Common Shares (Class I)^*		$26.86		$14.29		$19.77


Common Shares (Class S)^*		—		14.20		19.74

*	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 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

	$63,008,123		$5,414,981		$107,162,298		$15,677,453		$64,140,254		$17,825,143		$7,549,060


	$136,505,604		$7,312,006		$164,561,934		$18,521,482		$94,668,511		$22,351,348		$9,380,171
	—		—		—		—		—		—		1
	73,123		12,734		33,376		24,625		69,180		118,762		25,136
	—		—		9,377		—		3,834,819		—		—
	4,678		—		4,364		2,509		9,260		1,851		1,979


	136,583,405		7,324,740		164,609,051		18,548,616		98,581,770		22,471,961		9,407,287



	—		—		—		—		—		—		—
	31,991		—		2,430		700		10,470		1,463		149
	116,232		6,197		176,873		14,273		127,307		16,569		7,517
	—		753		—		927		—		—		—


	148,223		6,950		179,303		15,900		137,777		18,032		7,666


	$136,435,182		$7,317,790		$164,429,748		$18,532,716		$98,443,993		$22,453,929		$9,399,621



	$58,494,885		$5,198,561		$103,695,490		$15,333,572		$67,260,927		$17,792,781		$7,402,311
	77,940,297		2,119,229		60,734,258		3,199,144		31,183,066		4,661,148		1,997,310


	$136,435,182		$7,317,790		$164,429,748		$18,532,716		$98,443,993		$22,453,929		$9,399,621



	2,825,441		251,590		9,693,549		1,105,633		1,878,297		1,262,815		607,970


	—		242,641		—		336,744		—		—		—



	$136,435,182		$3,740,336		$164,429,748		$14,209,418		$98,443,993		$22,453,929		$9,399,621


	—		3,577,454		—		4,323,298		—		—		—



	$48.29		$14.87		$16.96		$12.85		$52.41		$17.78		$15.46


	—		14.74		—		12.84		—		—		—



JUNE 30, 2022		51

STATEMENTS OF OPERATIONS

Year Ended June 30, 2022


			Sit		Global
	Sit		Dividend		Dividend
	Balanced		Growth		Growth
	Fund		Fund		Fund

Investment income:
Income:
Dividends^*		$474,173		$5,089,472		$883,955
Interest		605,472		2,026		805


Total income		1,079,645		5,091,498		884,760


Expenses (note 4):
Investment management and advisory service fee		665,393		2,412,023		580,216
12b-1 fees (Class S)		—		67,465		10,197


Total expenses		665,393		2,479,488		590,413


Less fees and expenses waived by investment adviser		(60,702)		(723,607)		(116,043)


Total net expenses		604,691		1,755,881		474,370


Net investment income (loss)		474,954		3,335,617		410,390


Realized and unrealized gain (loss):
Net realized gain (loss) on investments		2,359,977		25,348,602		806,046
Net realized gain (loss) on foreign currency transactions		—		661		(3,082)

Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		(12,491,710)		(44,984,342)		(6,395,328)


Net gain (loss)		(10,131,733)		(19,635,079)		(5,592,364)


Net increase (decrease) in net assets resulting from operations		($9,656,779)		($16,299,462)		($5,181,974)


* Foreign taxes withheld on dividends received		$2,887		$20,690		$27,668

See accompanying notes to financial statements.



52		SIT MUTUAL FUNDS ANNUAL REPORT


Sit Large Cap Growth Fund		Sit ESG Growth Fund		Sit Mid Cap Growth Fund		Small Cap Dividend Growth Fund		Sit Small Cap Growth Fund		Sit International Growth Fund		Developing Markets Growth Fund


	$1,477,374		$138,995		$1,586,779		$410,857		$1,090,024		$611,445		$274,938
	1,590		72		4,088		582		2,450		251		209


	1,478,964		139,067		1,590,867		411,439		1,092,474		611,696		275,147



	1,745,140		112,174		2,708,300		276,187		1,967,728		439,671		234,430

	—		10,615		—		12,934		—		—		—


	1,745,140		122,789		2,708,300		289,121		1,967,728		439,671		234,430


	—		(22,435)		—		(65,741)		—		(87,049)		(94,198)


	1,745,140		100,354		2,708,300		223,380		1,967,728		352,622		140,232


	(266,176)		38,713		(1,117,433)		188,059		(875,254)		259,074		134,915



	9,487,470		283,241		11,614,655		862,054		7,511,710		695,492		82,047
	—		(253)		—		12		27		(2,870)		(1,108)

	(40,967,507)		(1,847,947)		(64,721,093)		(4,651,240)		(41,245,382)		(8,092,173)		(3,750,421)


	(31,480,037)		(1,564,959)		(53,106,438)		(3,789,174)		(33,733,645)		(7,399,551)		(3,669,482)


	($31,746,213)		($1,526,246)		($54,223,871)		($3,601,115)		($34,608,899)		($7,140,477)		($3,534,567)



	$7,383		$7,909		$5,299		$1,216		$7,987		$48,789		$22,258



JUNE 30, 2022		53

STATEMENTS OF CHANGES IN NET ASSETS


	Sit Balanced Fund				Sit Dividend Growth Fund
	Year		Year		Year		Year
	Ended		Ended		Ended		Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021

Operations:
Net investment income (loss)		$474,954		$430,852		$3,335,617		$2,949,079
Net realized gain (loss) on investments and foreign currency transactions		2,359,977		1,698,152		25,349,263		24,965,923
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions		(12,491,710)		11,329,221		(44,984,342)		42,687,814


Net increase (decrease) in net assets resulting from operations		(9,656,779)		13,458,225		(16,299,462)		70,602,816


Distributions from:
Net investment income and net realized gains
Common shares (Class I)		(2,956,313)		(884,972)		(25,681,861)		(13,049,387)
Common shares (Class S)		—		—		(3,168,345)		(1,943,636)


Total distributions		(2,956,313)		(884,972)		(28,850,206)		(14,993,023)


Capital share transactions:
Proceeds from shares sold
Common Shares (Class I)		13,412,686		18,674,720		28,157,324		18,080,843
Common Shares (Class S)		—		—		1,509,331		1,691,612
Reinvested distributions
Common Shares (Class I)		2,928,301		873,871		24,442,835		12,322,264
Common Shares (Class S)		—		—		3,159,382		1,939,456
Payments for shares redeemed
Common Shares (Class I)		(21,844,017)		(12,536,795)		(28,473,035)		(43,647,701)
Common Shares (Class S)		—		—		(9,393,310)		(9,175,403)


Increase (decrease) in net assets from capital transactions		(5,503,030)		7,011,796		19,402,527		(18,788,929)


Total increase (decrease) in net assets		(18,116,122)		19,585,049		(25,747,141)		36,820,864

Net assets:
Beginning of year		66,242,550		46,657,501		238,672,658		201,851,794


End of year		$48,126,428		$66,242,550		$212,925,517		$238,672,658


Capital transactions in shares:
Sold
Common Shares (Class I)		398,336		637,633		1,663,335		1,149,761
Common Shares (Class S)		—		—		89,054		108,736
Reinvested distributions
Common Shares (Class I)		88,175		29,661		1,442,952		824,322
Common Shares (Class S)		—		—		187,577		130,480
Redeemed
Common Shares (Class I)		(711,508)		(419,877)		(1,676,083)		(2,852,269)
Common Shares (Class S)		—		—		(545,058)		(598,376)


Net increase (decrease)		(224,997)		247,417		1,161,777		(1,237,346)

See accompanying notes to financial statements.



54		SIT MUTUAL FUNDS ANNUAL REPORT


Sit Global Dividend Growth Fund				Sit Large Cap Growth Fund				Sit ESG Growth Fund
Year		Year		Year		Year		Year		Year
Ended		Ended		Ended		Ended		Ended		Ended
June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021


	$410,390		$405,965		($266,176)		($167,980)		$38,713		$48,322
	802,964		125,639		9,487,470		9,623,514		282,988		100,056

	(6,395,328)		11,262,561		(40,967,507)		42,783,888		(1,847,947)		1,991,735


	(5,181,974)		11,794,165		(31,746,213)		52,239,422		(1,526,246)		2,140,113




	(334,135)		(357,992)		(10,822,278)		(7,944,944)		(71,656)		(24,675)
	(22,870)		(28,011)		—		—		(59,748)		(17,325)


	(357,005)		(386,003)		(10,822,278)		(7,944,944)		(131,404)		(42,000)




	1,661,272		2,902,906		4,420,115		9,860,034		157,956		444,726
	199,533		416,519		—		—		72,207		164,047

	314,053		337,222		10,641,515		7,789,099		71,656		24,675
	22,870		28,011		—		—		59,748		17,325

	(1,306,482)		(3,500,671)		(13,154,398)		(14,001,175)		(473,310)		(220,362)
	(458,731)		(790,219)		—		—		(32,242)		(44,889)


	432,515		(606,232)		1,907,232		3,647,958		(143,985)		385,522


	(5,106,464)		10,801,930		(40,661,259)		47,942,436		(1,801,635)		2,483,635


	45,554,217		34,752,287		177,096,441		129,154,005		9,119,425		6,635,790


	$40,447,753		$45,554,217		$136,435,182		$177,096,441		$7,317,790		$9,119,425




	72,461		146,001		71,691		178,421		8,598		27,965
	8,666		19,926		—		—		4,130		9,845

	13,860		18,355		163,590		143,077		3,783		1,528
	1,014		1,551		—		—		3,176		1,078

	(57,269)		(178,590)		(219,041)		(256,363)		(27,259)		(14,072)
	(20,277)		(40,393)		—		—		(1,728)		(3,063)


	18,455		(33,150)		16,240		65,135		(9,300)		23,281



JUNE 30, 2022		55

STATEMENTS OF CHANGES IN NET ASSETS


					Sit Small Cap
	Sit Mid Cap Growth Fund				Dividend Growth Fund
	Year		Year		Year		Year
	Ended		Ended		Ended		Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021

Operations:
Net investment income (loss)		($1,117,433)		($941,886)		$188,059		$165,598
Net realized gain (loss) on investments and foreign currency transactions		11,614,655		22,390,062		862,066		1,358,073
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions		(64,721,093)		44,094,365		(4,651,240)		5,771,758

Net increase (decrease) in net assets resulting from operations		(54,223,871)		65,542,541		(3,601,115)		7,295,429


Distributions from:
Net investment income and net realized gains
Common shares (Class I)		(26,173,363)		(8,583,537)		(1,438,331)		(113,108)
Common shares (Class S)		—		—		(429,103)		(24,893)


Total distributions		(26,173,363)		(8,583,537)		(1,867,434)		(138,001)


Capital share transactions:
Proceeds from shares sold
Common Shares (Class I)		1,319,860		2,098,452		844,902		1,343,221
Common Shares (Class S)		—		—		219,344		207,521
Reinvested distributions
Common Shares (Class I)		25,308,092		8,275,873		1,350,645		106,295
Common Shares (Class S)		—		—		414,564		23,534
Payments for shares redeemed
Common Shares (Class I)		(9,971,539)		(11,906,951)		(924,477)		(1,573,920)
Common Shares (Class S)		—		—		(204,817)		(469,090)


Increase (decrease) in net assets from capital transactions		16,656,413		(1,532,626)		1,700,161		(362,439)


Total increase (decrease) in net assets		(63,740,821)		55,426,378		(3,768,388)		6,794,989

Net assets:
Beginning of year		228,170,569		172,744,191		22,301,104		15,506,115


End of year		$164,429,748		$228,170,569		$18,532,716		$22,301,104


Capital transactions in shares:
Sold
Common Shares (Class I)		60,388		91,500		52,492		95,823
Common Shares (Class S)		—		—		13,840		14,152
Reinvested distributions
Common Shares (Class I)		1,096,063		356,565		85,026		8,203
Common Shares (Class S)		—		—		26,101		1,849
Redeemed
Common Shares (Class I)		(441,904)		(536,013)		(54,966)		(115,706)
Common Shares (Class S)		—		—		(13,515)		(32,458)


Net increase (decrease)		714,547		(87,948)		108,978		(28,137)

See accompanying notes to financial statements.



56		SIT MUTUAL FUNDS ANNUAL REPORT


Sit Small Cap Growth Fund				Sit International Growth Fund				Sit Developing Markets Growth Fund
Year		Year		Year		Year		Year		Year
Ended		Ended		Ended		Ended		Ended		Ended
June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021

	($875,254)		($790,058)		$259,074		$72,797		$134,915		$6,399

	7,511,737		18,466,132		692,622		633,288		80,939		263,674

	(41,245,382)		31,510,430		(8,092,173)		7,204,562		(3,750,421)		2,961,280

	(34,608,899)		49,186,504		(7,140,477)		7,910,647		(3,534,567)		3,231,353




	(19,675,197)		(4,398,753)		(72,739)		(61,406)		(252,776)		(34,798)
	—		—		—		—		—		—


	(19,675,197)		(4,398,753)		(72,739)		(61,406)		(252,776)		(34,798)




	1,398,827		5,203,639		767,114		2,038,696		682,993		1,604,37 5
	—		—		—		—		—		—

	19,201,055		4,280,437		71,582		60,436		247,111		34,053
	—		—		—		—		—		—

	(13,730,915)		(9,025,408)		(2,516,151)		(1,608,332)		(1,625,794)		(1,212,118)
	—		—		—		—		—		—


	6,868,967		458,668		(1,677,455)		490,800		(695,690)		426,310


	(47,415,129)		45,246,419		(8,890,671)		8,340,041		(4,483,033)		3,622,865


	145,859,122		100,612,703		31,344,600		23,004,559		13,882,654		10,259,789


	$98,443,993		$145,859,122		$22,453,929		$31,344,600		$9,399,621		$13,882,654




	19,358		70,046		33,021		98,959		36,524		78,575
	—		—		—		—		—		—

	276,393		59,649		3,120		2,881		13,548		1,656
	—		—		—		—		—		—

	(193,154)		(125,100)		(120,475)		(78,288)		(90,929)		(61,790)
	—		—		—		—		—		—


	102,597		4,595		(84,334)		23,552		(40,857)		18,441



JUNE 30, 2022		57

FINANCIAL HIGHLIGHTS

Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.

Sit Balanced Fund



	Year Ended June 30,

		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$32.85			$26.37			$25.06			$23.76			$22.71

Operations:
Net investment income ¹			0.23			0.22			0.25			0.32			0.25
Net realized and unrealized gains (losses)			(4.86	)		6.71			2.64			1.52			1.96

Total from operations			(4.63	)		6.93			2.89			1.84			2.21

Distributions to Shareholders:
From net investment income			(0.22	)		(0.20	)		(0.27	)		(0.31	)		(0.27	)
From net realized gains			(1.14	)		(0.25	)		(1.31	)		(0.23	)		(0.89	)

Total distributions			(1.36	)		(0.45	)		(1.58	)		(0.54	)		(1.16	)

Net Asset Value
End of period			$26.86			$32.85			$26.37			$25.06			$23.76

Total investment return ²			(14.87	%)		26.48	%		11.91	%		7.98	%		9.84	%

Net assets at end of period (000’s omitted)			$48,126			$66,243			$46,658			$34,465			$37,541

Ratios: ³
Expenses (without waiver)			1.00	%⁴		1.00	%		1.00	%		1.00	%		1.00	%
Expenses (with waiver)			0.91	%⁴		—			—			—			—
Net investment income (without waiver)			0.62	%		0.74	%		0.99	%		1.33	%		1.07	%
Net investment income (with waiver)			0.71	%		—			—			—			—

Portfolio turnover rate (excluding short-term securities)			39.92	%		38.30	%		58.63	%		50.45	%		50.49	%

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.

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 1.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



58		SIT MUTUAL FUNDS 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



Class I	Year Ended June 30,
Class I		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$17.37			$13.48			$14.45			$16.69			$16.88

Operations:
Net investment income ¹			0.24			0.21			0.22			0.38			0.26
Net realized and unrealized gains (losses)			(1.19	)		4.75			0.64			0.55			1.49

Total from operations			(0.95	)		4.96			0.86			0.93			1.75
Redemption fee ²			—			—			—			—			—
Distributions to Shareholders:
From net investment income			(0.24	)		(0.21	)		(0.24	)		(0.40	)		(0.26	)
From net realized gains			(1.89	)		(0.86	)		(1.59	)		(2.77	)		(1.68	)

Total distributions			(2.13	)		(1.07	)		(1.83	)		(3.17	)		(1.94	)

Net Asset Value
End of period			$14.29			$17.37			$13.48			$14.45			$16.69

Total investment return ³			(7.27	%)		38.13	%		5.46	%		8.37	%		10.36	%

Net assets at end of period (000’s omitted)			$191,010			$207,378			$172,746			$214,204			$918,584

Ratios: ⁴
Expenses (without waiver) ⁵			1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Expenses (with waiver) ⁵			0.70	%		0.70	%		0.70	%		0.70	%		0.78	%
Net investment income (without waiver)			1.11	%		1.08	%		1.30	%		2.04	%		1.31	%
Net investment income (with waiver)			1.41	%		1.38	%		1.60	%		2.34	%		1.53	%

Portfolio turnover rate (excluding short-term securities)			58.96	%		42.93	%		68.43	%		51.52	%		68.38	%

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

⁵	Total Fund expenses are limited to 1.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



JUNE 30, 2022		59

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



Class S	Year Ended June 30,
Class S		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$17.27			$13.40			$14.37			$16.61			$16.81

Operations:
Net investment income ¹			0.19			0.17			0.19			0.32			0.22
Net realized and unrealized gains (losses)			(1.17	)		4.73			0.63			0.57			1.47

Total from operations			(0.98	)		4.90			0.82			0.89			1.69
Redemption fee			—			—	²		—	²		—	²		—	²
Distributions to Shareholders:
From net investment income			(0.20	)		(0.17	)		(0.20	)		(0.36	)		(0.21	)
From net realized gains			(1.89	)		(0.86	)		(1.59	)		(2.77	)		(1.68	)

Total distributions			(2.09	)		(1.03	)		(1.79	)		(3.13	)		(1.89	)

Net Asset Value
End of period			$14.20			$17.27			$13.40			$14.37			$16.61

Total investment return ³			(7.50	%)		37.87	%		5.19	%		8.12	%		10.06	%

Net assets at end of period (000’s omitted)			$21,915			$31,295			$29,106			$39,729			$51,331

Ratios: ⁴
Expenses (without waiver) ⁵			1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses (with waiver) ⁵			0.95	%		0.95	%		0.95	%		0.95	%		0.03	%
Net investment income (without waiver)			0.85	%		0.83	%		1.05	%		1.80	%		1.06	%
Net investment income (with waiver)			1.15	%		1.13	%		1.35	%		2.10	%		1.28	%

Portfolio turnover rate (excluding short-term securities)			58.96	%		42.93	%		68.43	%		51.52	%		68.38	%

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

⁵	Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



60		SIT MUTUAL FUNDS 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



Class I	Year Ended June 30,
Class I		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$22.47			$16.87			$16.34			$15.24			$14.54

Operations:
Net investment income ¹			0.21			0.20			0.22			0.28			0.27
Net realized and unrealized gains (losses)			(2.73	)		5.59			0.57			1.10			0.67

Total from operations			(2.52	)		5.79			0.79			1.38			0.94
Redemption fee			—			—			—	²		—	²		—
Distributions to Shareholders:
From net investment income			(0.18	)		(0.19	)		(0.26	)		(0.28	)		(0.24	)

Net Asset Value
End of period			$19.77			$22.47			$16.87			$16.34			$15.24

Total investment return ³			(11.31	%)		34.61	%		4.93	%		9.18	%		6.46	%

Net assets at end of period (000’s omitted)			$37,057			$41,461			$31,361			$30,823			$28,778

Ratios: ⁴
Expenses (without waiver) ⁵			1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses (with waiver) ⁵			1.00	%		1.00	%		1.00	%		1.00	%		1.06	%
Net investment income (without waiver)			0.66	%		0.77	%		1.11	%		1.53	%		1.59	%
Net investment income (with waiver)			0.91	%		1.02	%		1.36	%		1.78	%		1.78	%

Portfolio turnover rate (excluding short-term securities)			4.64	%		11.55	%		22.15	%		15.07	%		19.80	%

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

⁵	Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



JUNE 30, 2022		61

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



Class S	Year Ended June 30,
Class S		2022				2021			2020			2019			2018

Net Asset Value:
Beginning of period			$22.45				$16.85			$16.33			$15.22			$14.53

Operations:
Net investment income ¹			0.15				0.15			0.18			0.24			0.23
Net realized and unrealized gains (losses)			(2.73	)			5.60			0.56			1.11			0.66

Total from operations			(2.58	)			5.75			0.74			1.35			0.89
Redemption fee			—				—	²		—	²		—			—
Distributions to Shareholders:
From net investment income			(0.13	)			(0.15	)		(0.22	)		(0.24	)		(0.20	)

Net Asset Value
End of period			$19.74				$22.45			$16.85			$16.33			$15.22

Total investment return ³			(11.58	%)			34.32	%		4.60	%		8.98	%		6.13	%

Net assets at end of period (000’s omitted)			$3,391				$4,093			$3,391			$3,241			$3,246

Ratios: ⁴
Expenses (without waiver) ⁵			1.50	%			1.50	%		1.50	%		1.50	%		1.50	%
Expenses (with waiver) ⁵			1.25	%			1.25	%		1.25	%		1.25	%		1.31	%
Net investment income (without waiver)			0.39	%			0.52	%		0.87	%		1.28	%		1.33	%
Net investment income (with waiver)			0.64	%			0.77	%		1.12	%		1.53	%		1.52	%

Portfolio turnover rate (excluding short-term securities)			4.64	%	��		11.55	%		22.15	%		15.07	%		19.80	%

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

⁵	Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



62		SIT MUTUAL FUNDS 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



	Year Ended June 30,
		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$63.04			$47.07			$42.53			$42.40			$40.56

Operations:
Net investment income (loss) ¹			(0.09	)		(0.06	)		0.07			0.16			0.13
Net realized and unrealized gains (losses)			(10.74	)		18.95			8.60			3.61			6.55

Total from operations			(10.83	)		18.89			8.67			3.77			6.68
Redemption fee			—			—	²		—	²		—	²		—	²
Distributions to Shareholders:
From net investment income			—			(0.02	)		(0.12	)		(0.15	)		(0.17	)
From net realized gains			(3.92	)		(2.90	)		(4.01	)		(3.49	)		(4.67	)

Total distributions			(3.92	)		(2.92	)		(4.13	)		(3.64	)		(4.84	)

Net Asset Value
End of period			$48.29			$63.04			$47.07			$42.53			$42.40

Total investment return ³			(18.78	%)		41.12	%		21.34	%		10.54	%		16.93	%

Net assets at end of period (000’s omitted)			$136,435			$177,096			$129,154			$116,581			$118,792

Ratios: ⁴
Expenses			1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Net investment income (loss)			(0.15	%)		(0.11	%)		0.17	%		0.39	%		0.30	%

Portfolio turnover rate (excluding short-term securities)			10.83	%		9.75	%		14.53	%		16.02	%		15.02	%

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



JUNE 30, 2022		63

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



Class I	Year Ended June 30,
Class I		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$18.17			$13.85			$13.21			$12.37			$11.29

Operations:
Net investment income ¹			0.10			0.12			0.12			0.17			0.16
Net realized and unrealized gains (losses)			(3.13	)		4.30			0.74			0.83			1.03

Total from operations			(3.03	)		4.42			0.86			1.00			1.19
Redemption fee			—			—	²		—			—			—
Distributions to Shareholders:
From net investment income			(0.08	)		(0.10	)		(0.17	)		(0.16	)		(0.11	)
From net realized gains			(0.19	)		—			(0.05	)		—			—

Total distributions			(0.27	)		(0.10	)		(0.22	)		(0.16	)		(0.11	)

Net Asset Value
End of period			$14.87			$18.17			$13.85			$13.21			$12.37

Total investment return ³			(16.97	%)		31.97	%		6.47	%		8.30	%		10.57	%

Net assets at end of period (000’s omitted)			$3,740			$4,841			$3,477			$3,387			$3,041

Ratios: ⁴
Expenses (without waiver) ⁵			1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses (with waiver) ⁵			1.00	%		1.00	%		1.00	%		1.00	%		1.06	%
Net investment income (without waiver)			0.30	%		0.48	%		0.63	%		1.14	%		1.10	%
Net investment income (with waiver)			0.55	%		0.73	%		0.88	%		1.38	%		1.29	%

Portfolio turnover rate (excluding short-term securities)			9.23	%		7.39	%		25.28	%		9.26	%		14.97	%

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

⁵	Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



64		SIT MUTUAL FUNDS ANNUAL REPORT

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



Class S	Year Ended June 30,
Class S		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$18.05			$13.78			$13.16			$12.34			$11.28

Operations:
Net investment income ¹			0.05			0.08			0.08			0.14			0.13
Net realized and unrealized gains (losses)			(3.11	)		4.27			0.74			0.83			1.03

Total from operations			(3.06	)		4.35			0.82			0.97			1.16
Distributions to Shareholders:
From net investment income			(0.06	)		(0.08	)		(0.15	)		(0.15	)		(0.10	)
From net realized gains			(0.19	)		—			(0.05	)		—			—

Total distributions			(0.25	)		(0.08	)		(0.20	)		(0.15	)		(0.10	)

Net Asset Value
End of period			$14.74			$18.05			$13.78			$13.16			$12.34

Total investment return ²			(17.24	%)		31.61	%		6.22	%		8.01	%		10.37	%

Net assets at end of period (000’s omitted)			$3,577			$4,279			$3,158			$2,895			$2,660

Ratios: ³
Expenses (without waiver) ⁴			1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses (with waiver) ⁴			1.25	%		1.25	%		1.25	%		1.25	%		1.31	%
Net investment income (without waiver)			0.05	%		0.23	%		0.38	%		0.89	%		0.84	%
Net investment income (with waiver)			0.30	%		0.48	%		0.63	%		1.14	%		1.03	%

Portfolio turnover rate (excluding short-term securities)			9.23	%		7.39	%		25.28	%		9.26	%		14.97	%

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.

⁴	Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



JUNE 30, 2022		65

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



	Year Ended June 30,
		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$25.41			$19.05			$18.84			$18.96			$18.06

Operations:
Net investment loss ¹			(0.12	)		(0.10	)		(0.05	)		(0.03	)		(0.03	)
Net realized and unrealized gains (losses)			(5.37	)		7.44			1.64			1.79			1.71

Total from operations			(5.49	)		7.34			1.59			1.76			1.68
Redemption fee ²			—			—			—			—			—
Distributions to Shareholders:
From net investment income			—			—			—			—			—	²
From net realized gains			(2.96	)		(0.98	)		(1.38	)		(1.88	)		(0.78	)

Total distributions			(2.96	)		(0.98	)		(1.38	)		(1.88	)		(0.78	)

Net Asset Value
End of period			$16.96			$25.41			$19.05			$18.84			$18.96

Total investment return ³			(24.70	%)		38.99	%		8.75	%		11.76	%		9.42	%

Net assets at end of period (000’s omitted)			$164,430			$228,171			$172,744			$169,099			$158,501

Ratios: ⁴
Expenses			1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Net investment loss			(0.52	%)		(0.46	%)		(0.27	%)		(0.16	%)		(0.17	%)

Portfolio turnover rate (excluding short-term securities)			13.16	%		19.54	%		25.58	%		27.70	%		28.89	%

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



66		SIT MUTUAL FUNDS 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



Class I	Year Ended June 30,
Class I		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$16.73			$11.39			$11.89			$12.27			$11.47

Operations:
Net investment income ¹			0.14			0.13			0.13			0.15			0.11
Net realized and unrealized gains (losses)			(2.61	)		5.32			(0.49	)		(0.25	)		0.80

Total from operations			(2.47	)		5.45			(0.36	)		(0.10	)		0.91
Redemption fee			—	²		—			—			—			—
Distributions to Shareholders:
From net investment income			(0.14	)		(0.11	)		(0.14	)		(0.15	)		(0.11	)
From net realized gains			(1.27	)		—			—			(0.13	)		—

Total distributions			(1.41	)		(0.11	)		(0.14	)		(0.28	)		(0.11	)

Net Asset Value
End of period			$12.85			$16.73			$11.39			$11.89			$12.27

Total investment return ³			(16.30	%)		48.13	%		(3.05	%)		(0.54	%)		8.00	%

Net assets at end of period (000’s omitted)			$14,209			$17,114			$11,786			$12,559			$14,597

Ratios: ⁴
Expenses (without waiver) ⁵			1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses (with waiver) ⁵			0.95	%		1.00	%		1.00	%		1.00	%		1.06	%
Net investment income (without waiver)			0.59	%		0.67	%		0.90	%		1.07	%		0.75	%
Net investment income (with waiver)			0.89	%		0.92	%		1.15	%		1.32	%		0.94	%

Portfolio turnover rate (excluding short-term securities)			18.47	%		27.91	%		27.58	%		24.17	%		29.74	%

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

⁵	Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



JUNE 30, 2022		67

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



Class S	Year Ended June 30,
Class S		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$16.72			$11.38			$11.88			$12.26			$11.46

Operations:
Net investment income ¹			0.11			0.10			0.10			0.12			0.08
Net realized and unrealized gains (losses)			(2.62	)		5.32			(0.49	)		(0.25	)		0.80

Total from operations			(2.51	)		5.42			(0.39	)		(0.13	)		0.88
Redemption fee			—	²		—			—			—			—
Distributions to Shareholders:
From net investment income			(0.10	)		(0.08	)		(0.11	)		(0.12	)		(0.08	)
From net realized gains			(1.27	)		—			—			(0.13	)		—

Total distributions			(1.37	)		(0.08	)		(0.11	)		(0.25	)		(0.08	)

Net Asset Value
End of period			$12.84			$16.72			$11.38			$11.88			$12.26

Total investment return ³			(16.48	%)		47.73	%		(3.30	%)		(0.80	%)		7.74	%

Net assets at end of period (000’s omitted)			$4,323			$5,187			$3,720			$3,981			$3,882

Ratios: ⁴
Expenses (without waiver) ⁵			1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses (with waiver) ⁵			1.20	%		1.25	%		1.25	%		1.25	%		1.31	%
Net investment income (without waiver)			0.42	%		0.42	%		0.64	%		0.82	%		0.51	%
Net investment income (with waiver)			0.72	%		0.67	%		0.89	%		1.07	%		0.70	%

Portfolio turnover rate (excluding short-term securities)			18.47	%		27.91	%		27.58	%		24.17	%		29.74	%

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

⁵	Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



68		SIT MUTUAL FUNDS 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



	Year Ended June 30,
		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$82.14			$56.81			$55.46			$57.18			$54.18

Operations:
Net investment loss ¹			(0.48	)		(0.44	)		(0.28	)		(0.25	)		(0.29	)
Net realized and unrealized gains (losses)			(17.68	)		28.28			3.38			2.88			7.01

Total from operations			(18.16	)		27.84			3.10			2.63			6.72
Redemption fee ²			—			—			—			—			—
Distributions to Shareholders:
From net realized gains			(11.57	)		(2.51	)		(1.75	)		(4.35	)		(3.72	)

Net Asset Value
End of period			$52.41			$82.14			$56.81			$55.46			$57.18

Total investment return ³			(25.57	%)		49.65	%		5.68	%		6.45	%		12.68	%

Net assets at end of period (000’s omitted)			$98,444			$145,859			$100,613			$99,630			$100,038

Ratios: ⁴
Expenses			1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Net investment loss			(0.67	%)		(0.62	%)		(0.53	%)		(0.47	%)		(0.51	%)

Portfolio turnover rate (excluding short-term securities)			15.64	%		30.54	%		25.74	%		26.34	%		29.01	%

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



JUNE 30, 2022		69

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



	Year Ended June 30,
		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$23.27			$17.38			$17.13			$16.75			$16.23

Operations:
Net investment income ¹			0.20			0.05			0.06			0.16			0.19
Net realized and unrealized gains (losses)			(5.63	)		5.89			0.36			0.40			0.47

Total from operations			(5.43	)		5.94			0.42			0.56			0.66
Redemption fee			—			—			—	²		—			—	²
Distributions to Shareholders:
From net investment income			(0.06	)		(0.05	)		(0.17	)		(0.18	)		(0.14	)

Net Asset Value
End of period			$17.78			$23.27			$17.38			$17.13			$16.75

Total investment return ³			(23.41	%)		34.18	%		2.43	%		3.55	%		4.06	%

Net assets at end of period (000’s omitted)			$22,454			$31,345			$23,005			$23,463			$23,875

Ratios: ⁴
Expenses (without waiver)			1.50	%⁵		1.50	%		1.50	%		1.50	%		1.50	%
Expenses (with waiver)			1.20	%⁵		—			—			—			—
Net investment income (without waiver)			0.59	%		0.26	%		0.35	%		0.97	%		1.11	%
Net investment income (with waiver)			0.88	%		—			—			—			—

Portfolio turnover rate (excluding short-term securities)			7.76	%		12.61	%		13.38	%		27.38	%		16.35	%

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

⁵	Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



70		SIT MUTUAL FUNDS 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



	Year Ended June 30,
		2022			2021			2020			2019			2018

Net Asset Value:
Beginning of period			$21.40			$16.28			$16.21			$17.25			$15.23

Operations:
Net investment income ¹			0.21			0.01			0.26			0.10			0.03
Net realized and unrealized gains (losses)			(5.76	)		5.17			0.11			(0.90	)		2.24

Total from operations			(5.55	)		5.18			0.37			(0.80	)		2.27
Redemption fee			—			—			—	²		—			—	²
Distributions to Shareholders:
From net investment income			(0.02	)		(0.02	)		(0.30	)		(0.08	)		—
From net realized gains			(0.37	)		(0.04	)		—			(0.16	)		(0.25	)

Total distributions			(0.39	)		(0.06	)		(0.30	)		(0.24	)		(0.25	)

Net Asset Value
End of period			$15.46			$21.40			$16.28			$16.21			$17.25

Total investment return ³			(26.19	%)		31.79	%		2.20	%		(4.43	%)		14.94	%

Net assets at end of period (000’s omitted)			$9,400			$13,883			$10,260			$9,996			$11,027

Ratios: ⁴
Expenses (without waiver) ⁵			2.00	%		2.00	%		2.00	%		2.00	%		2.00	%
Expenses (with waiver) ⁵			1.20	%		1.40	%		1.40	%		1.40	%		1.54	%
Net investment income (without waiver)			0.35	%		(0.55	%)		1.05	%		0.03	%		(0.26	%)
Net investment income (with waiver)			1.15	%		0.05	%		1.65	%		0.63	%		0.20	%

Portfolio turnover rate (excluding short-term securities)			2.49	%		7.52	%		4.15	%		10.28	%		30.30	%

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

⁵	Total Fund expenses are limited to 2.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.



JUNE 30, 2022		71

NOTES TO FINANCIAL STATEMENTS

Year Ended June 30, 2022

(1)

Organization

The Sit Mutual Funds covered by this report are Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, 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, and Sit Developing Markets Growth Fund (each a “Fund” and collectively, the “Funds”). The 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 Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit ESG Growth Fund, Sit Small Cap Dividend Growth Fund, Sit Small Cap Growth Fund, Sit International Growth Fund, and Sit Developing Markets Growth Fund are series funds of Sit Mutual Funds, Inc. Each Fund has 10 billion authorized shares of capital stock with a par value of $0.001. This report covers the equity Funds of the Sit Mutual Funds.

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



72		SIT MUTUAL FUNDS ANNUAL REPORT

prepayment speeds as applicable. When market quotations are not readily available, or when Sit Investment Associates, Inc. (the “Adviser” or “SIA”) 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 Funds’ Board of Directors. The procedures consider, among 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 June 30, 2022 is included with the Funds’ schedules 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 statements of operations.



JUNE 30, 2022		73

NOTES TO FINANCIAL STATEMENTS

Year Ended June 30, 2022 (Continued)

The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract.

Federal Taxes

The Funds’ policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. Therefore, no income tax provision is required. 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 June 30, 2022, 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 June 30, 2022, 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		$10,900,227		($2,423,778	)		$8,476,449		$39,556,719
Dividend Growth		38,370,520		(8,778,888	)		29,591,632		182,944,114
Global Dividend Growth		15,474,852		(1,589,045	)		13,885,807		26,500,998
Large Cap Growth		77,003,721		(3,506,240	)		73,497,481		63,008,123
ESG Growth		2,347,677		(450,805	)		1,896,872		5,415,045
Mid Cap Growth		69,633,079		(12,348,825	)		57,284,254		107,277,680
Small Cap Dividend Growth		4,535,456		(1,687,176	)		2,848,280		15,673,202
Small Cap Growth		36,149,079		(5,602,295	)		30,546,784		64,121,726
International Growth		6,059,844		(1,560,945	)		4,498,899		17,849,576
Developing Markets Growth		2,871,428		(1,045,271	)		1,826,157		7,553,902

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, 2022 and 2021 was as follows:



74		SIT MUTUAL FUNDS ANNUAL REPORT


Year Ended June 30, 2022:
	Ordinary Income		Long Term Capital Gain		Total
Balanced		$682,176		$2,274,137		$2,956,313
Dividend Growth (Class I)		3,242,312		22,439,549		25,681,861
Dividend Growth (Class S)		349,898		2,818,447		3,168,345
Global Dividend Growth (Class I)		334,135		—		334,135
Global Dividend Growth (Class S)		22,870		—		22,870
Large Cap Growth		4,575		10,817,703		10,822,278
ESG Growth (Class I)		23,120		48,536		71,656
ESG Growth (Class S)		15,486		44,262		59,748
Mid Cap Growth		—		26,173,363		26,173,363
Small Cap Dividend Growth (Class I)		170,582		1,267,749		1,438,331
Small Cap Dividend Growth (Class S)		38,830		390,273		429,103
Small Cap Growth		1,227,477		18,447,720		19,675,197
International Growth		72,739		—		72,739
Developing Markets Growth		14,001		238,775		252,776

Year Ended June 30, 2021:
	Ordinary Income		Long Term Capital Gain		Total
Balanced		$503,459		$381,513		$884,972
Dividend Growth (Class I)		2,537,370		10,512,017		13,049,387
Dividend Growth (Class S)		332,660		1,610,976		1,943,636
Global Dividend Growth (Class I)		357,992		—		357,992
Global Dividend Growth (Class S)		28,011		—		28,011
Large Cap Growth		63,677		7,881,267		7,944,944
ESG Growth (Class I)		24,675		—		24,675
ESG Growth (Class S)		17,325		—		17,325
Mid Cap Growth		—		8,583,537		8,583,537
Small Cap Dividend Growth (Class I)		113,108		—		113,108
Small Cap Dividend Growth (Class S)		24,893		—		24,893
Small Cap Growth		—		4,398,753		4,398,753
International Growth		61,406		—		61,406
Developing Markets Growth		10,868		23,930		34,798

As of June 30, 2022, the components of distributable earnings on a tax basis were as follows:


	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Unrealized Appreciation (Depreciation)
Balanced		$130,676		$1,580,798		$8,476,449
Dividend Growth		620,638		16,933,121		29,591,632
Global Dividend Growth		211,178		—		13,885,807
Large Cap Growth		—		4,469,489		73,497,481
ESG Growth		28,129		194,228		1,896,872
Mid Cap Growth		—		3,866,225		57,284,254
Small Cap Dividend Growth		68,015		282,849		2,848,280
Small Cap Growth		—		1,011,816		30,546,784
International Growth		256,203		—		4,498,899
Developing Markets Growth		125,010		46,143		1,826,157



JUNE 30, 2022		75

NOTES TO FINANCIAL STATEMENTS

Year Ended June 30, 2022 (Continued)

On the statements of assets and liabilities, as a result of permanent book-to-tax differences, reclassification adjustments were made to the following capital accounts:


	Distributable Earnings		Additional Paid-in Capital
Large Cap Growth		$239,503		($239,503	)
Mid Cap Growth		1,267,546		(1,267,546	)
Small Cap Growth		496,661		(496,661	)

Net capital loss carryovers and late year losses, if any, as of June 30, 2022, 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, 2022, were as follows:


	Unlimited Period of Net Capital Loss Carryover				Late Year Losses Deferred
	Short-Term		Long-Term		Ordinary		Capital
Global Dividend Growth		$117,472		—		—		—
Large Cap Growth		—		—		$26,673		—
Mid Cap Growth		—		—		416,221		—
Small Cap Growth		—		—		375,534		—
International Growth		93,954		—		—		—

For the year ended June 30, 2022, the Funds’ utilized capital losses and expired capital losses as follows:


	Utilized		Expired
Global Dividend Growth		$805,761		—
International Growth		695,062		—

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 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.



76		SIT MUTUAL FUNDS ANNUAL REPORT

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 year ended June 30, 2022, were as follows:


	Purchases				Proceeds
	U.S. Government		Other		U.S. Government		Other
Balanced		$8,904,338		$16,519,261		$10,309,721		$25,731,555
Dividend Growth		—		140,185,594		—		147,783,520
Global Dividend Growth		—		2,512,080		—		2,107,142
Large Cap Growth		—		18,616,230		—		26,865,532
ESG Growth		—		805,395		—		915,700
Mid Cap Growth		—		27,972,807		—		37,792,727
Small Cap Dividend Growth		—		4,352,717		—		3,961,751
Small Cap Growth		—		20,178,837		—		38,064,243
International Growth		—		2,227,714		—		3,518,414
Developing Markets Growth		—		287,699		—		1,059,528

(4)

Affiliated Fees and Transactions

Investment Adviser

The Funds each have entered into an investment management agreement with SIA, under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. The current fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of:


	Management Fees		Net of Adviser’s Voluntary Fee Waiver
Balanced		1.00%		0.80%
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%		0.90%
Small Cap Growth		1.50%		N/A
International Growth		1.50%		0.85%
Developing Markets Growth		2.00%		0.95%

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).



JUNE 30, 2022		77

NOTES TO FINANCIAL STATEMENTS

Year Ended June 30, 2022 (Continued)

In addition to the annual management fees, the Class S shares of the 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 such shares.

Effective January 1, 2022, the Adviser has agreed to voluntarily limit the management fee of the Balanced Fund to 0.80%, the Small Cap Dividend Growth Fund to 0.90% (prior to January 1, 2022, the limitation was 1.00%), the International Growth Fund to 0.85% and the Developing Markets Growth Fund to 0.95% (prior to January 1, 2022, the limitation was 1.40%) for the period through June 30, 2023 of the Fund’s daily average net assets, respectively.

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% and the ESG Growth Fund to 1.00% for the period through June 30, 2023 of the Fund’s daily average net assets, respectively.

Transactions with affiliates

The Adviser, affiliates of the Adviser, directors and officers of the Funds as a whole owned the following shares as of June 30, 2022:


	Shares		% Shares Outstanding
Balanced		392,924		21.9
Dividend Growth		1,773,271		11.9
Global Dividend Growth		507,046		24.8
Large Cap Growth		818,978		29.0
ESG Growth		455,978		92.3
Mid Cap Growth		4,913,068		50.7
Small Cap Dividend Growth		709,492		49.2
Small Cap Growth		1,141,376		60.8
International Growth		725,737		57.5
Developing Markets Growth		284,887		46.9

(5) Credit Facility

Effective November 30, 2021, the Funds, together with the 4 bond Sit Mutual Funds managed by SIA, are borrowers in a $20 million credit facility (Credit Facility) maturing November 29, 2022. The Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Under the terms of the Credit Facility, each Fund shall pay interest charged on any borrowings made by the Fund. During the year ended June 30, 2022, the Funds did not use the Credit Facility.

(6) 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 year ended June 30, 2022, the Funds received the following redemption fees:


	Class I		Class S
Dividend Growth		$185		$—
Mid Cap Growth		1,167		—
Small Cap Dividend Growth		37		11
Small Cap Growth		141		—



78		SIT MUTUAL FUNDS ANNUAL REPORT

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors

Sit Mutual Funds, Inc.

Sit Large Cap Growth Fund

Sit Mid Cap Growth Fund:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit ESG Growth Fund, Sit Small Cap Dividend Growth Fund, Sit Small Cap Growth Fund, Sit International Growth Fund, Sit Developing Markets Growth Fund (each a series of Sit Mutual Funds, Inc.), Sit Large Cap Growth Fund, and Sit Mid Cap Growth Fund (collectively, the Funds), including the schedules of investments, as of June 30, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of June 30, 2022, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2022, by correspondence with custodians and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/KPMG LLP

We have served as the auditor of one or more Sit Mutual Funds investment companies since 1982.

Minneapolis, Minnesota

August 18, 2022



JUNE 30, 2022		79

EXPENSE EXAMPLE

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period January 1, 2022 to June 30, 2022.

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.


	Beginning Account Value (1/1/22)		Ending Account Value (6/30/22)		Expenses Paid During Period^*(1/1/22- 6/30/22)

Balanced Fund
Actual		$1,000		$796.00		$3.56
Hypothetical		$1,000		$1,020.83		$4.01

Dividend Growth Fund
Actual
Class I		$1,000		$829.40		$3.18
Class S		$1,000		$828.50		$4.31
Hypothetical
Class I		$1,000		$1,021.32		$3.51
Class S		$1,000		$1,020.08		$4.76

Global Dividend Growth Fund
Actual
Class I		$1,000		$800.60		$4.46
Class S		$1,000		$799.10		$5.58
Hypothetical
Class I		$1,000		$1,019.84		$5.01
Class S		$1,000		$1,018.60		$6.26

Large Cap Growth Fund
Actual		$1,000		$725.40		$4.28
Hypothetical		$1,000		$1,019.84		$5.01

ESG Growth Fund
Actual
Class I		$1,000		$769.30		$4.39
Class S		$1,000		$767.70		$5.48
Hypothetical
Class I		$1,000		$1,019.84		$5.01
Class S		$1,000		$1,018.60		$6.26

Mid Cap Growth Fund
Actual		$1,000		$704.00		$5.28
Hypothetical		$1,000		$1,018.60		$6.26

Small Cap Dividend Growth Fund
Actual
Class I		$1,000		$780.90		$3.97
Class S		$1,000		$779.80		$5.07
Hypothetical
Class I		$1,000		$1,020.33		$4.51
Class S		$1,000		$1,019.09		$5.76



80		SIT MUTUAL FUNDS ANNUAL REPORT


	Beginning Account Value (1/1/22)	Ending Account Value (6/30/22)	Expenses Paid During Period^*(1/1/22- 6/30/22)

Small Cap Growth Fund
Actual	$1,000	$719.80	$6.40
Hypothetical	$1,000	$1,017.36	$7.50

International Growth Fund
Actual	$1,000	$751.50	$3.69
Hypothetical	$1,000	$1,020.58	$4.26

Developing Markets Growth Fund
Actual	$1,000	$832.10	$4.32
Hypothetical	$1,000	$1,020.08	$4.76

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, and Developing Markets Growth Funds; 0.80%, for Balanced, 1.00% for the Global Dividend Growth, Class I, Large Cap Growth, Class I, and ESG Growth, Class I Funds; 0.90% for the Small Cap Dividend Growth, Class I Fund; 1.25% for Global Dividend Growth, Class S, ESG Growth, Class S, and Mid Cap Growth Funds, 1.15% for Small Cap Dividend Growth, Class S Fund; 1.50% for Small Cap Growth Fund, and 0.85% for International Growth Fund, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period.)



JUNE 30, 2022		81

FEDERAL TAX INFORMATION (Unaudited)

Sit Equity Funds

For corporate shareholders, the percentage of investment income (dividend income and short-term gains, if any), for each of the Funds that qualify for the Dividends Received Deductions for the period of July 1, 2021 to June 30, 2022 is as follows:


Fund		Percentage
Balanced		64.6%
Dividend Growth		100.0
Global Dividend Growth		100.0
Large Cap Growth		100.0
ESG Growth		100.0
Mid Cap Growth		0.0
Small Cap Dividend Growth		100.0
Small Cap Growth		79.0
International Growth		28.1
Developing Markets Growth		50.0

For the year ended June 30, 2022, certain dividends paid by the Funds may be subject to a maximum tax rate of 20%, as provided by the American Taxpayer Relief Act of 2012. Of the distributions made by the following Funds, the corresponding percentages represent the amount of each distribution which may qualify for the lower dividend income tax rates.


Fund		Percentage
Balanced		73.4%
Dividend Growth		100.0
Global Dividend Growth		100.0
Large Cap Growth		100.0
ESG Growth		100.0
Mid Cap Growth		0.0
Small Cap Dividend Growth		100.0
Small Cap Growth		85.7
International Growth		100.0
Developing Markets Growth		100.0

The following Funds designated the listed amounts as long-term capital gain dividends during the year ended June 30, 2022. Distributable long-term gains are based on net realized long term gains determined on a tax basis and may differ from such amounts for financial reporting purposes.


Fund		Amount
Balanced		$2,381,763
Dividend Growth		25,257,996
Global Dividend Growth		—
Large Cap Growth		10,817,703
ESG Growth		283,305
Mid Cap Growth		26,173,363
Small Cap Dividend Growth		1,658,022
Small Cap Growth		18,447,720
International Growth		—



82		SIT MUTUAL FUNDS ANNUAL REPORT

INFORMATION ABOUT DIRECTORS AND OFFICERS (Unaudited)

The Sit Mutual Funds are a family of no-load mutual funds. The stock Funds described in this Annual Report are the Sit Mid Cap Growth Fund, Sit Large Cap Growth Fund, Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit ESG Growth Fund, Sit Small Cap Growth Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, and Sit Small Cap Dividend Growth Fund (the “Funds” or individually, a “Fund”). The bond funds within the Sit Mutual Fund family are described in a separate Annual Report. The Sit Mid Cap Growth Fund and Sit Large Cap Growth Fund, and the corporate issuer of the Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit ESG Growth Fund, Sit Small Cap Growth Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund and Sit Small Cap Dividend Growth Fund each have a Board of Directors (together, the “Boards”) and officers. Pursuant to Minnesota law, the Boards are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day-to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below. The business address is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The stock Funds’ SAI has additional information about the Funds’ directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.


Name, Age and Position with Funds	Term of Office ⁽¹⁾ and Length of Time Served	Principal Occupations During Past Five Years	Number of Funds Overseen in Fund Complex	Other Directorships Held by Director ⁽³⁾

INTERESTED DIRECTOR:
Roger J. Sit ⁽²⁾ Age: 60 Chairman and President	Chairman since 10/08; Officer since 1998.	Chairman, President, CEO and Global CIO of Sit Investment Associates, Inc. (the “Adviser”); Chairman and CEO of Sit Investment Fixed Income Advisors II, LLC (“SF”); Chairman of SIA Securities Corp. (the “Distributor”).	14	The Huntington Nation- al Bank.

INDEPENDENT DIRECTORS:
Edward M. Giles Age: 86 Director	Director since 2012 or the Fund’s inception, if later.	Senior Vice President of Peter B. Cannell & Co., July 2011 to present.	14	None.
Sidney L. Jones Age: 88	Director from 1988 to 1989 and since 1993 or the Fund’s inception, if later.	Lecturer, Washington Campus Consortium of 17 Universities.	14	None.
Bruce C. Lueck Age: 81 Director	Director since 2004 or the Fund’s inception, if later.	Consultant for Zephyr Management, L.P. (investment management) and committee member of several investment funds and foundations.	14	None.
Donald W. Phillips Age: 74 Director	Director of the International Fund since1993, and since 1990 or the Fund’s inception, if later for all other Funds.	Chairman and CEO of WP Global Partners Inc., July 2005 to present.	14	None.
Barry N. Winslow Age: 74 Director	Director since 2010 or the Fund’s inception, if later.	Board member, TCF Financial Corporation, July 2014 to July 2019.	14	None.



JUNE 30, 2022		83

INFORMATION ABOUT DIRECTORS AND OFFICERS (Unaudited) (Continued)


Name, Age and Position with Funds	Term of Office ⁽¹⁾ and Length of Time Served	Principal Occupations During Past Five Years	Number of Funds Overseen in Fund Complex	Other Directorships Held by Director ⁽³⁾

OFFICERS:
Mark H. Book Age: 59 Vice President – Investments of Balanced Fund only.	Officer since 2002; Re-Elected by the Boards annually.	Vice President and Portfolio Manager of SF.	N/A	N/A
Kelly K. Boston Age: 53 Assistant Secretary & Assistant Treasurer	Officer since 2000; Re-Elected by the Boards annually.	Staff Attorney of the Adviser; Secretary of the Distributor.	N/A	N/A
Bryce Doty Age: 55 Vice President - Investments of Balanced Fund only.	Officer since 1996; Re-Elected by the Boards annually.	Senior Vice President and Senior Portfolio Manager of SF.	N/A	N/A
Kent L. Johnson Age: 56 Vice President - Investments	Officer since 2003; Re-Elected by the Boards annually.	Senior Vice President - Research and Investment Management of the Adviser.	N/A	N/A
Paul E. Rasmussen Age: 61 Vice President, Treasurer, Secretary, & Chief Compliance Officer	Officer since 1994; Re-Elected by the Boards annually.	Vice President, Secretary, Controller and Chief Compliance Officer of the Adviser; Vice President, Secretary, and Chief Compliance Officer of SF; President and Treasurer of the Distributor.	N/A	N/A
Carla J. Rose Age: 56 Vice President, Assistant Secretary & Assistant Treasurer	Officer since 2000; Re-Elected by the Boards annually.	Vice President, Administration & Deputy Controller of the Adviser; Vice President, Controller, Treasurer & Assistant Secretary of SF; Vice President and Assistant Secretary of the Distributor.	N/A	N/A
Robert W. Sit Age: 53 Vice President - Investments	Officer since 1997; Re-Elected by the Boards annually.	Vice President - Research and Investment Management of the Adviser.	N/A	N/A
Ronald D. Sit Age: 62 Vice President - Investments	Officer since 1985; Re-Elected by the Boards annually.	Vice President - Research and Investment Management of the Adviser.	N/A	N/A

¹	Each Director serves until their resignation, removal or the next meeting of the shareholders at which election of directors is an agenda item and until his successor is duly elected and shall qualify.

²	Director who is deemed to be an “interested person” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Sit is considered an “interested person” because he is an officer of Sit Investment Associates, Inc., the Funds’ investment adviser.

³	Includes only directorships of companies required to report under the Securities Exchange Act of 1934 (i.e. public companies) or other investment companies registered under the 1940 Act.



84		SIT MUTUAL FUNDS ANNUAL REPORT

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 SCHEDULES OF INVESTMENTS

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.



JUNE 30, 2022		85

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86		SIT MUTUAL FUNDS ANNUAL REPORT

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JUNE 30, 2022		87

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88		SIT MUTUAL FUNDS ANNUAL REPORT

LOGO

Item 2: Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, and persons performing similar functions. The registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.

A copy of the registrant’s code of ethics is available without charge upon request by calling the registrant at 612-332-3223 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.

Item 3: Audit Committee Financial Expert.

The registrant’s Board of Directors has determined that Mr. Edward M. Giles, Mr. Sidney L. Jones, Mr. Bruce C. Lueck, Mr. Donald W. Phillips and Mr. Barry N. Winslow are audit committee financial experts serving on its audit committee. Mr. Giles, Mr. Jones, Mr. Lueck, Mr. Phillips and Mr. Winslow are independent for purposes of this item.

Item 4: Principal Accountant Fees and Services.

(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:


	2022								2021
	Audit Fees		Audit Related		Tax Fees		Other Fees		Audit Fees		Audit Related		Tax Fees		Other Fees
Fiscal year ended June 30
Sit Mutual Funds, Inc.
Sit International Growth Fund (series A)		$26,100		0		$6,500		0		$24,500		0		$6,075		0
Sit Balanced Fund (series B)		29,200		0		6,500		0		27,100		0		6,075		0
Sit Developing Markets Growth Fund (series C)		26,100		0		6,500		0		24,500		0		6,075		0
Sit Small Cap Growth Fund (series D)		26,100		0		6,500		0		24,500		0		6,075		0
Sit Dividend Growth Fund (series G)		32,200		0		6,500		0		30,000		0		6,075		0
Sit Global Dividend Growth Fund (series H)		26,100		0		6,500		0		24,500		0		6,075		0
Sit Small Cap Dividend Growth Fund (series I)		26,100		0		6,500		0		24,500		0		6,075		0
Sit ESG Growth Fund (series J)		26,100		0		6,500		0		24,500		0		6,075		0

Total Sit Mutual Funds, Inc.		218,000		0		52,000		0		204,100		0		48,600		0

Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements, and/or are traditionally performed by the auditor. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other Fees include services provided to review the Fund’s order processing and trading procedures.

(e) (1) The Audit Committee is required to pre-approve audit and non-audit services performed for the registrant by the independent auditor in order to assure that the provision of such services does not impair the auditor’s independence. The audit committee also is required to pre-approve certain non-audit services performed by the registrant’s independent auditor for the registrant’s investment adviser and certain of the adviser’s affiliates if the services relate directly to the operations and financial reporting of the registrant. Services to be provided by the auditor must receive general pre-approval or specific pre-approval by the audit committee. Any proposed services exceeding pre-approved cost levels will require separate pre-approval by the audit committee.

The audit committee may delegate pre-approval authority to the audit committee chairman. The chairman shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee does not delegate its responsibility to pre-approve services performed by the independent auditor to management.

(2) No services included in (b) – (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $0 and $0, respectively.

(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.

Item 5: Audit Committee of Listed Registrants.

Not applicable to open-end investment companies.

Item 6: Schedule of Investments.

The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8: Portfolio Managers of Closed-End Management Investments Companies.

Not applicable to open-end investment companies.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11: Controls and Procedures.

(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.

Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 13: Exhibits:

(a) The following exhibits are attached to this Form N-CSR:

(2)

A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(certification required by Section 302 of the Sarbanes-Oxley Act of 2002).

(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Sit Mutual Funds, Inc.


By (Signature and Title)*		/s/ Paul E. Rasmussen
		Paul E. Rasmussen
		Vice President, Treasurer

Date August 22, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)		/s/ Paul E. Rasmussen
		Paul E. Rasmussen
		Vice President, Treasurer

Date August 22, 2022


By (Signature and Title)		/s/ Roger J. Sit
		Roger J. Sit
		Chairman

Date August 22, 2022

Sit Balanced Fund (SIBAX) N-CSRCertified annual shareholder report (management investment company)