UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
3300 IDS Center
80 South Eighth Street
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number, including area code: (612) 332-3223
Date of fiscal year end: June 30, 2011
Date of reporting period: June 30, 2011
Item 1: Reports to Stockholders
STOCK FUNDS ANNUAL REPORT
TABLE OF CONTENTS
| Page | ||||
| 2 | ||||
| Fund Reviews and Schedules of Investments |
||||
| 4 | ||||
| 10 | ||||
| 14 | ||||
| 20 | ||||
| 24 | ||||
| 28 | ||||
| 32 | ||||
| 38 | ||||
| 44 | ||||
| 46 | ||||
| 48 | ||||
| 52 | ||||
| 60 | ||||
| 68 | ||||
| 69 | ||||
| 70 | ||||
| 71 | ||||
| 73 | ||||
This document must be preceded or accompanied by a Prospectus.
| 2 |
| 3 |
OBJECTIVE & STRATEGY
The Sit Balanced Fund’s dual objectives are to seek long-term growth of capital consistent with the preservation of principal and to provide regular income. It pursues its objectives by investing in a diversified portfolio of stocks and bonds. The Fund may emphasize either equity securities or fixed-income securities, or hold equal amounts of each, dependent upon the Adviser’s analysis of market, financial and economic conditions.
The Fund’s permissible investment allocation is: 35-65% in equity securities and 35-65% in fixed-income securities. At all times at least 25% of the fixed-income assets will be invested in fixed-income senior securities.
| 4 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 5 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Balanced Fund
| See accompanying notes to financial statements. | ||
| 6 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Balanced Fund (Continued)
| JUNE 30, 2011 | 7 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Balanced Fund (Continued)
| See accompanying notes to financial statements. | ||
| 8 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Balanced Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level
2 Other significant observable inputs ($) |
Level 3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks ** |
7,034,997 | — | — | 7,034,997 | ||||||||||||
| Asset-Backed Securities |
— | 428,834 | — | 428,834 | ||||||||||||
| Collateralized Mortgage Obligations |
— | 484,295 | — | 484,295 | ||||||||||||
| Corporate Bonds |
— | 966,138 | — | 966,138 | ||||||||||||
| Federal Home Loan Mortgage Corporation |
— | 279,985 | — | 279,985 | ||||||||||||
| Federal National Mortgage Association |
— | 689,628 | — | 689,628 | ||||||||||||
| Government National Mortgage Association |
— | 324,500 | — | 324,500 | ||||||||||||
| Taxable Municipal Securities |
— | 172,316 | — | 172,316 | ||||||||||||
| U.S. Government / Federal Agency Securities |
— | 412,880 | — | 412,880 | ||||||||||||
| Closed-End Mutual Funds |
59,503 | — | — | 59,503 | ||||||||||||
| Short-Term Securities |
399,879 | — | — | 399,879 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
7,494,379 | 3,758,576 | — | 11,252,955 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
| JUNE 30, 2011 | 9 |
Sit Dividend Growth Fund - Class I and Class S
OBJECTIVE & STRATEGY
The objective of the Dividend Growth Fund is to provide current income that exceeds the dividend yield of the S&P 500® Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
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.
| 10 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 11 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Dividend Growth Fund
| See accompanying notes to financial statements. | ||
| 12 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Dividend Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level
2 Other significant observable inputs ($) |
Level
3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks ** |
363,741,622 | — | — | 363,741,622 | ||||||||||||
| Preferred Stocks ** |
2,373,638 | — | — | 2,373,638 | ||||||||||||
| Closed-End Mutual Funds |
6,790,101 | — | — | 6,790,101 | ||||||||||||
| Short-Term Securities |
14,724,677 | — | — | 14,724,677 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
387,630,038 | — | — | 387,630,038 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
| JUNE 30, 2011 | 13 |
Sit Global Dividend Growth Fund - Class I and Class S
OBJECTIVE & STRATEGY
The objective of the Global Dividend Growth Fund is to provide current income that exceeds the dividend yield of a composite index (comprised of 60% S&P 500® Index and 40% MSCI EAFE Index) and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.
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.
| 14 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 15 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Global Dividend Growth Fund
| See accompanying notes to financial statements. | ||
| 16 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Global Dividend Growth Fund (Continued)
| JUNE 30, 2011 | 17 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Global Dividend Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level
2* Other significant observable inputs ($) |
Level
3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks |
||||||||||||||||
| Australia |
504,358 | — | — | 504,358 | ||||||||||||
| Bermuda |
65,407 | — | — | 65,407 | ||||||||||||
| Canada |
165,984 | — | — | 165,984 | ||||||||||||
| China/Hong Kong |
91,797 | — | — | 91,797 | ||||||||||||
| Denmark |
69,122 | — | — | 69,122 | ||||||||||||
| France |
227,196 | — | — | 227,196 | ||||||||||||
| Germany |
165,036 | 93,883 | — | 258,919 | ||||||||||||
| Ireland |
93,651 | — | — | 93,651 | ||||||||||||
| Israel |
68,714 | — | — | 68,714 | ||||||||||||
| Italy |
48,016 | 95,400 | — | |
143,416 |
| ||||||||||
| Japan |
— | 160,341 | — | 160,341 | ||||||||||||
| Norway |
70,560 | — | — | 70,560 | ||||||||||||
| Spain |
97,442 | 66,513 | — | 163,955 | ||||||||||||
| Sweden |
94,140 | 47,146 | — | 141,286 | ||||||||||||
| Switzerland |
138,858 | 312,325 | — | 451,183 | ||||||||||||
| United Kingdom |
536,566 | 287,147 | — | 823,713 | ||||||||||||
| United States |
5,538,799 | — | — | 5,538,799 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 7,975,646 | 1,062,755 | — | 9,038,401 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Closed-End Mutual Funds |
132,947 | — | — | 132,947 | ||||||||||||
| Short-Term Securities |
108,337 | — | — | 108,337 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
8,216,930 | 1,062,755 | — | 9,279,685 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Level 2 equity securities are primarily foreign securities where the closing price has been adjusted by application of a systematic process for events occurring after the close of the foreign exchange. |
| See accompanying notes to financial statements. | ||
| 18 | SIT MUTUAL FUNDS ANNUAL REPORT |
[This page intentionally left blank.]
| JUNE 30, 2011 | 19 |
OBJECTIVE & STRATEGY
The objective of the Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.
| 20 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 21 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Large Cap Growth Fund
| See accompanying notes to financial statements. | ||
| 22 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Large Cap Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level
1 Quoted Price ($) |
Level
2 Other significant observable inputs ($) |
Level
3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks ** |
360,353,637 | — | — | 360,353,637 | ||||||||||||
| Rights |
132,309 | — | — | 132,309 | ||||||||||||
| Short-Term Securities |
5,213,399 | — | — | 5,213,399 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
365,699,345 | — | — | 365,699,345 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
| JUNE 30, 2011 | 23 |
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 the common stocks of growth companies with capitalizations of $2 billion to $15 billion at the time of purchase.
| 24 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 25 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Mid Cap Growth Fund
| See accompanying notes to financial statements. | ||
| 26 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Mid Cap Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level 2 Other significant observable inputs ($) |
Level 3
Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks ** |
162,031,853 | — | — | 162,031,853 | ||||||||||||
| Short-Term Securities |
4,183,623 | — | — | 4,183,623 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
166,215,476 | — | — | 166,215,476 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
| JUNE 30, 2011 | 27 |
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 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 ($6.0 billion as of June 30, 2011).
The Adviser invests in a diversified group of growing small companies it believes exhibit the potential for superior growth. The Adviser believes that a company’s earnings growth is the primary determinant of its potential long-term return and evaluates a company’s potential for above average long-term earnings and revenue growth.
| 28 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 29 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Small Cap Growth Fund
| See accompanying notes to financial statements. | ||
| 30 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Small Cap Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level
2 Other significant observable inputs ($) |
Level 3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks ** |
93,325,311 | — | — | 93,325,311 | ||||||||||||
| Short-Term Securities |
1,436,960 | — | — | 1,436,960 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
94,762,271 | — | — | 94,762,271 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ** | For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
| JUNE 30, 2011 | 31 |
OBJECTIVE & STRATEGY
The objective of the International Growth Fund is long-term growth. The Fund seeks to achieve its objective by investing at least 90% of its net assets in common stocks of growth companies domiciled outside the United States.
In selecting investments for the Fund, the Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Adviser seeks industries and sectors that it believes have earnings growth prospects that are greater than the average. Within the selected industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
| 32 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 33 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit International Growth Fund
| See accompanying notes to financial statements. | ||
| 34 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit International Growth Fund (Continued)
| JUNE 30, 2011 | 35 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit International Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||||
| Level 1 Quoted Price ($) |
Level 2* Other significant observable inputs ($) |
Level
3 Significant unobservable inputs ($) |
Total ($) | |||||||||||||
| Common Stocks |
||||||||||||||||
| Australia |
845,472 | 1,237,802 | — | 2,083,274 | ||||||||||||
| Bermuda |
299,498 | — | — | 299,498 | ||||||||||||
| Brazil |
423,850 | — | — | 423,850 | ||||||||||||
| Canada |
1,131,240 | — | — | 1,131,240 | ||||||||||||
| China/Hong Kong |
386,449 | 1,378,656 | — | 1,765,105 | ||||||||||||
| Denmark |
248,209 | — | — | 248,209 | ||||||||||||
| France |
306,720 | 1,913,397 | — | 2,220,117 | ||||||||||||
| Germany |
— | 1,719,977 | — | 1,719,977 | ||||||||||||
| Israel |
241,100 | — | — | 241,100 | ||||||||||||
| Italy |
228,650 | 292,079 | — | 520,729 | ||||||||||||
| Japan |
— | 2,843,342 | — | 2,843,342 | ||||||||||||
| Mexico |
187,039 | — | — | 187,039 | ||||||||||||
| Netherlands |
199,584 | 186,086 | — | 385,670 | ||||||||||||
| Norway |
204,624 | — | — | 204,624 | ||||||||||||
| Peru |
207,081 | — | — | 207,081 | ||||||||||||
| Poland |
104,160 | — | — | 104,160 | ||||||||||||
| South Africa |
137,514 | — | — | 137,514 | ||||||||||||
| South Korea |
212,757 | 253,972 | — | 466,729 | ||||||||||||
| Spain |
325,198 | 549,157 | — | 874,355 | ||||||||||||
| Sweden |
258,885 | 282,877 | — | 541,762 | ||||||||||||
| Switzerland |
298,425 | 2,405,947 | — | 2,704,372 | ||||||||||||
| Taiwan |
— | 185,962 | — | 185,962 | ||||||||||||
| United Kingdom |
2,149,945 | 2,224,697 | — | 4,374,642 | ||||||||||||
| United States |
298,088 | — | — | 298,088 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 8,694,488 | 15,473,951 | — | 24,168,439 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Short-Term Securities |
250,066 | — | — | 250,066 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total: |
8,944,554 | 15,473,951 | — | 24,418,505 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Level 2 equity securities are primarily foreign securities where the closing price has been adjusted by application of a systematic process for events occurring after the close of the foreign exchange. |
| See accompanying notes to financial statements. | ||
| 36 | SIT MUTUAL FUNDS ANNUAL REPORT |
[This page intentionally left blank.]
| JUNE 30, 2011 | 37 |
Sit Developing Markets Growth Fund
OBJECTIVE & STRATEGY
The Fund seeks to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies domiciled or operating in a developing market. In selecting investments for the Fund, the Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Adviser seeks industries and sectors that appear to have strong earnings growth prospects. Within the selected industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.
| See accompanying notes to financial statements. | ||
| 38 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 39 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Developing Markets Growth Fund
| See accompanying notes to financial statements. | ||
| 40 | SIT MUTUAL FUNDS ANNUAL REPORT |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Developing Markets Growth Fund (Continued)
| JUNE 30, 2011 | 41 |
SCHEDULE OF INVESTMENTS
June 30, 2011
Sit Developing Markets Growth Fund (Continued)
A summary of the inputs used to value the Fund’s net assets as of June 30, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
| Investment in Securities | ||||||||||||||
| Level 1 Quoted Price ($) |
Level 2* observable inputs ($) |
Level 3 Significant unobservable inputs ($) |
Total ($) | |||||||||||
| Common Stocks |
||||||||||||||
| Australia |
539,391 | 483,346 | — | 1,022,737 | ||||||||||
| Austria |
— | 99,417 | — | 99,417 | ||||||||||
| Brazil |
3,131,772 | — | — | 3,131,772 | ||||||||||
| Chile |
253,287 | — | — | 253,287 | ||||||||||
| China/Hong Kong |
1,291,801 | 2,158,824 | — | 3,450,625 | ||||||||||
| India |
710,158 | — | — | 710,158 | ||||||||||
| Indonesia |
— | 327,072 | — | 327,072 | ||||||||||
| Israel |
116,352 | — | — | 116,352 | ||||||||||
| Mexico |
663,700 | — | — | 663,700 | ||||||||||
| Peru |
313,908 | — | — | 313,908 | ||||||||||
| Phillipines |
166,033 | — | — | 166,033 | ||||||||||
| Poland |
78,400 | — | — | 78,400 | ||||||||||
| Russia |
450,816 | 211,509 | — | 662,325 | ||||||||||
| Singapore |
— | 83,736 | — | 83,736 | ||||||||||
| South Africa |
264,450 | 693,519 | — | 957,969 | ||||||||||
| South Korea |
536,778 | 1,155,830 | — | 1,692,608 | ||||||||||
| Sweden |
— | 220,016 | — | 220,016 | ||||||||||
| Taiwan |
— | 764,141 | — | 764,141 | ||||||||||
| Thailand |
— | 265,478 | — | 265,478 | ||||||||||
| United Kingdom |
— | 104,148 | — | 104,148 | ||||||||||
|
|
|
|
|
|
|
|
||||||||
| 8,516,846 | 6,567,036 | — | 15,083,882 | |||||||||||
|
|
|
|
|
|
|
|
||||||||
| Exchange-Traded Funds |
163,020 | — | — | 163,020 | ||||||||||
| Short-Term Securities |
194,193 | — | — | 194,193 | ||||||||||
|
|
|
|
|
|
|
|
||||||||
| Total: |
8,874,059 | 6,567,036 | — | 15,441,095 | ||||||||||
|
|
|
|
|
|
|
|
||||||||
| * | Level 2 equity securities are primarily foreign securities where the closing price has been adjusted by application of a systematic process for events occurring after the close of the foreign exchange. |
| See accompanying notes to financial statements. | ||
| 42 | SIT MUTUAL FUNDS ANNUAL REPORT |
[This page intentionally left blank.]
| JUNE 30, 2011 | 43 |
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2011
| Sit Balanced Fund |
Sit Dividend Growth Fund |
Sit Global Dividend Growth Fund |
||||||||||
| ASSETS |
||||||||||||
| Investments in securities, at identified cost |
$ | 9,394,772 | $ | 354,732,333 | $ | 8,060,642 | ||||||
|
|
|
|
|
|
|
|||||||
| Investments in securities, at fair value - see accompanying schedule for detail |
$ | 11,252,955 | $ | 387,630,038 | $ | 9,279,685 | ||||||
| Cash in bank on demand deposit |
— | — | — | |||||||||
| Accrued interest and dividends receivable |
41,179 | 445,998 | 19,320 | |||||||||
| Receivable for investment securities sold |
— | — | — | |||||||||
| Receivable for principal paydowns |
1,287 | — | — | |||||||||
| Other receivables (note 5) |
— | — | — | |||||||||
| Receivable for Fund shares sold |
— | 3,290,348 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
11,295,421 | 391,366,384 | 9,299,005 | |||||||||
|
|
|
|
|
|
|
|||||||
| LIABILITIES |
||||||||||||
| Disbursements in excess of cash balances |
24,151 | 2,663,107 | 2,633 | |||||||||
| Payable for investment securities purchased |
111,710 | 3,807,936 | 9,248 | |||||||||
| Payable for Fund shares redeemed |
— | 267,384 | — | |||||||||
| Cash portion of dividends payable to shareholders |
— | — | — | |||||||||
| Accrued investment management fees and advisory fees |
9,147 | 279,761 | 9,007 | |||||||||
| Accrued 12b-1 fees (Class S) |
— | 11,031 | 438 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
145,008 | 7,029,219 | 21,326 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net assets applicable to outstanding capital stock |
$ | 11,150,413 | $ | 384,337,165 | $ | 9,277,679 | ||||||
|
|
|
|
|
|
|
|||||||
| Net assets consist of: |
||||||||||||
| Capital (par value and paid-in surplus) |
$ | 11,079,507 | $ | 350,214,396 | $ | 7,903,710 | ||||||
| Undistributed (distributions in excess of) net investment income |
21,559 | 1,154,505 | 42,402 | |||||||||
| Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
(1,808,836 | ) | 70,559 | 112,244 | ||||||||
| Unrealized appreciation (depreciation) on investments and foreign currency transactions |
1,858,183 | 32,897,705 | 1,219,323 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 11,150,413 | $ | 384,337,165 | $ | 9,277,679 | |||||||
|
|
|
|
|
|
|
|||||||
| Outstanding shares: |
||||||||||||
| Common Shares (Class I) * |
677,213 | 23,588,743 | 590,884 | |||||||||
|
|
|
|
|
|
|
|||||||
| Common Shares (Class S) * |
— | 4,057,927 | 109,022 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net assets applicable to outstanding shares: |
||||||||||||
| Common Shares (Class I) * |
$ | 11,150,413 | $ | 328,056,805 | $ | 7,833,760 | ||||||
|
|
|
|
|
|
|
|||||||
| Common Shares (Class S) * |
— | 56,280,360 | 1,443,919 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net asset value per share of outstanding capital stock: |
||||||||||||
| Common Shares (Class I) * |
$ | 16.47 | $ | 13.91 | $ | 13.26 | ||||||
|
|
|
|
|
|
|
|||||||
| Common Shares (Class S) * |
— | $ | 13.87 | $ | 13.24 | |||||||
|
|
|
|
|
|
|
|||||||
| * | Dividend Growth and Global Dividend Growth Funds offer multiple share classes (I and S). All other Funds offer a single share class. |
| See accompanying notes to financial statements. | ||
| 44 | SIT MUTUAL FUNDS ANNUAL REPORT |
| Sit Large Cap Growth Fund |
Sit Mid Cap Growth Fund |
Sit Small Cap Growth Fund |
Sit International Growth Fund |
Sit Developing Markets Growth Fund |
||||||||||||||
| $ | 284,109,952 | $ | 116,143,182 | $ | 68,436,904 | $ | 18,839,393 | $ | 9,336,540 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 365,699,345 | $ | 166,215,476 | $ | 94,762,271 | $ | 24,418,505 | $ | 15,441,095 | |||||||||
| — | 8,447 | — | 71,748 | — | ||||||||||||||
| 379,863 | 101,619 | 22,022 | 128,011 | 40,838 | ||||||||||||||
| 3,788,088 | — | — | 59,582 | — | ||||||||||||||
| — | — | — | — | — | ||||||||||||||
| — | 2,188 | 14,142 | 343,245 | — | ||||||||||||||
| 82,667 | 269 | 66,530 | 75 | 414 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 369,949,963 | 166,327,999 | 94,864,965 | 25,021,166 | 15,482,347 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 1,231,374 | — | 7,323 | — | 2,839 | ||||||||||||||
| 1,875,583 | 804,918 | — | 159,617 | 34,493 | ||||||||||||||
| 1,490,954 | 63,627 | 1,216 | 3,895 | — | ||||||||||||||
| — | — | — | 2 | — | ||||||||||||||
| 307,455 | 171,773 | 112,306 | 34,667 | 25,335 | ||||||||||||||
| — | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 4,905,366 | 1,040,318 | 120,845 | 198,181 | 62,667 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 365,044,597 | $ | 165,287,681 | $ | 94,744,120 | $ | 24,822,985 | $ | 15,419,680 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 312,290,442 | $ | 119,016,965 | $ | 80,670,023 | $ | 28,688,813 | $ | 8,354,751 | |||||||||
| 1,152,889 | — | — | 248,883 | 28,067 | ||||||||||||||
| (29,988,127) | (3,801,578 | ) | (12,251,270 | ) | (9,703,015 | ) | 932,214 | |||||||||||
| 81,589,393 | 50,072,294 | 26,325,367 | 5,588,304 | 6,104,648 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 365,044,597 | $ | 165,287,681 | $ | 94,744,120 | $ | 24,822,985 | $ | 15,419,680 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 8,304,735 | 10,409,381 | 2,160,122 | 1,637,820 | 663,630 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| — | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 365,044,597 | $ | 165,287,681 | $ | 94,744,120 | $ | 24,822,985 | $ | 15,419,680 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| — | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 43.96 | $ | 15.88 | $ | 43.86 | $ | 15.16 | $ | 23.24 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| — | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| JUNE 30, 2011 | 45 |
Year Ended June 30, 2011
| Sit Balanced Fund |
Sit Dividend Growth Fund |
Sit Global Dividend Growth Fund |
||||||||||
| Investment income: |
||||||||||||
| Income: |
||||||||||||
| Dividends* |
$ | 141,340 | $ | 4,912,566 | $ | 163,476 | ||||||
| Interest |
166,667 | 1,379 | 34 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total income |
308,007 | 4,913,945 | 163,510 | |||||||||
|
|
|
|
|
|
|
|||||||
| Expenses (note 4): |
||||||||||||
| Investment management and advisory service fee |
111,965 | 1,897,034 | 72,512 | |||||||||
| 12b-1 fees (Class S) |
— | 94,383 | 2,892 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total expenses |
111,965 | 1,991,417 | 75,404 | |||||||||
|
|
|
|
|
|
|
|||||||
| Less fees and expenses waived by investment adviser |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total net expenses |
111,965 | 1,991,417 | 75,404 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net investment income (loss) |
196,042 | 2,922,528 | 88,106 | |||||||||
|
|
|
|
|
|
|
|||||||
| Realized and unrealized gain (loss): |
||||||||||||
| Net realized gain (loss) on investments |
259,850 | 3,665,498 | 149,841 | |||||||||
| Net realized gain (loss) on foreign currency transactions |
— | — | 68 | |||||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
1,429,713 | 33,423,934 | 1,019,265 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net gain (loss) on investments |
1,689,563 | 37,089,432 | 1,169,174 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 1,885,605 | $ | 40,011,960 | $ | 1,257,280 | ||||||
|
|
|
|
|
|
|
|||||||
|
* Foreign taxes withheld on dividends received |
$ | 609 | $ | 34,647 | $ | 6,263 | ||||||
| See accompanying notes to financial statements. | ||
| 46 | SIT MUTUAL FUNDS ANNUAL REPORT |
| Sit Large Cap Growth Fund |
Sit Mid Cap Growth Fund |
Sit Small Cap Growth Fund |
Sit International Growth Fund |
Sit Developing Markets Growth Fund |
||||||||||||||
| $ | 6,367,514 | $ | 1,198,864 | $ | 454,862 | $ | 628,618 | $ | 343,543 | |||||||||
| 544 | 707 | 415 | 61 | 449 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 6,368,058 | 1,199,571 | 455,277 | 628,679 | 343,992 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 4,145,426 | 1,955,804 | 1,165,414 | 386,352 | 319,301 | ||||||||||||||
| — | — | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 4,145,426 | 1,955,804 | 1,165,414 | 386,352 | 319,301 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| — | (73,986 | ) | — | (27,041 | ) | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 4,145,426 | 1,881,818 | 1,165,414 | 359,311 | 319,301 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 2,222,632 | (682,247 | ) | (710,137 | ) | 269,368 | 24,691 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 16,383,200 | 9,559,375 | 5,818,321 | 1,546,552 | 1,072,798 | ||||||||||||||
| — | — | — | 7,442 | 3,376 | ||||||||||||||
|
|
82,886,395 |
|
38,339,256 | 18,521,998 | 4,265,504 | 2,547,316 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| 99,269,595 | 47,898,631 | 24,340,319 | 5,819,498 | 3,623,490 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 101,492,227 | $ | 47,216,384 | $ | 23,630,182 | $ | 6,088,866 | $ | 3,648,181 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
$ |
20,994 |
|
$ | 488 | $ | 3,600 | $ | 54,907 | $ | 39,023 | ||||||||
| JUNE 30, 2011 | 47 |
STATEMENTS OF CHANGES IN NET ASSETS
| Sit Balanced Fund | Sit Dividend Growth Fund | |||||||||||||||
| Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
|||||||||||||
| Operations: |
||||||||||||||||
| Net investment income (loss) |
$ | 196,042 | $ | 276,203 | $ | 2,922,528 | $ | 953,362 | ||||||||
| Net realized gain (loss) on investments and foreign currency transactions |
259,850 | (434,743 | ) | 3,665,498 | 1,675,499 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
1,429,713 | 1,476,636 | 33,423,934 | 2,901,091 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
1,885,605 | 1,318,096 | 40,011,960 | 5,529,952 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions from: |
||||||||||||||||
| Net investment income |
||||||||||||||||
| Common shares (Class I) |
(220,001 | ) | (293,000 | ) | (1,576,972 | ) | (548,746 | ) | ||||||||
| Common shares (Class S) |
— | — | (394,029 | ) | (330,254 | ) | ||||||||||
| Net realized gains on investments |
||||||||||||||||
| Common shares (Class I) |
— | — | — | — | ||||||||||||
| Common shares (Class S) |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total distributions |
(220,001 | ) | (293,000 | ) | (1,971,001 | ) | (879,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Capital share transactions: |
||||||||||||||||
| Proceeds from shares sold |
||||||||||||||||
| Common shares (Class I) |
563,638 | 714,605 | 285,199,007 | 11,452,027 | ||||||||||||
| Common shares (Class S) |
— | — | 29,799,433 | 16,562,200 | ||||||||||||
| Capital share proceeds (note 5) |
— | — | — | — | ||||||||||||
| Reinvested distributions |
||||||||||||||||
| Common shares (Class I) |
218,217 | 291,180 | 755,122 | 522,134 | ||||||||||||
| Common shares (Class S) |
— | — | 393,299 | 328,928 | ||||||||||||
| Payments for shares redeemed |
||||||||||||||||
| Common shares (Class I) |
(1,846,872 | ) | (1,829,957 | ) | (26,676,725 | ) | (3,637,969 | ) | ||||||||
| Common shares (Class S) |
— | — | (7,497,899 | ) | (9,589,022 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Increase (decrease) in net assets from capital transactions. |
(1,065,017 | ) | (824,172 | ) | 281,972,237 | 15,638,298 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total increase (decrease) in net assets |
600,587 | 200,924 | 320,013,196 | 20,289,250 | ||||||||||||
| Net assets: |
||||||||||||||||
| Beginning of period |
10,549,826 | 10,348,902 | 64,323,969 | 44,034,719 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of period * |
$ | 11,150,413 | $ | 10,549,826 | $ | 384,337,165 | $ | 64,323,969 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Capital transactions in shares: |
||||||||||||||||
| Sold |
||||||||||||||||
| Common shares (Class I) |
35,186 | 49,409 | 21,928,647 | 1,042,818 | ||||||||||||
| Common shares (Class S) |
— | — | 2,260,496 | 1,530,590 | ||||||||||||
| Reinvested distributions |
||||||||||||||||
| Common shares (Class I) |
14,144 | 20,558 | 60,038 | 48,739 | ||||||||||||
| Common shares (Class S) |
— | — | 31,617 | 30,536 | ||||||||||||
| Redeemed |
||||||||||||||||
| Common shares (Class I) |
(116,291 | ) | (124,370 | ) | (2,107,311 | ) | (332,759 | ) | ||||||||
| Common shares (Class S) |
— | — | (581,199 | ) | (856,775 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) |
(66,961 | ) | (54,403 | ) | 21,592,288 | 1,463,149 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * includes undistributed net investment income (loss) |
$ | 21,559 | $ | 54,913 | $ | 1,154,505 | $ | 292,944 | ||||||||
| See accompanying notes to financial statements. | ||
| 48 | SIT MUTUAL FUNDS ANNUAL REPORT |
| Sit Global Dividend Growth Fund | Sit Large Cap Growth Fund | Sit Mid Cap Growth Fund | ||||||||||||||||||||
| Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
|||||||||||||||||
| $ | 88,106 | $ | 53,143 | $ | 2,222,632 | $ | 2,471,926 | ($ | 682,247 | ) | ($ | 590,430 | ) | |||||||||
|
|
149,909 |
|
52,534 | 16,383,200 | (6,406,205 | ) | 9,559,375 | 5,885,385 | ||||||||||||||
|
|
1,019,265 |
|
126,766 | 82,886,395 | 28,265,518 | 38,339,256 | 16,424,075 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
1,257,280 |
|
232,443 | 101,492,227 | 24,331,239 | 47,216,384 | 21,719,030 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (55,448) | (35,594 | ) | (2,300,000 | ) | (2,475,000 | ) | — | — | ||||||||||||||
| (12,552) | (9,406 | ) | — | — | — | — | ||||||||||||||||
| (35,832) | — | — | — | — | — | |||||||||||||||||
| (11,279) | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (115,111) | (45,000 | ) | (2,300,000 | ) | (2,475,000 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 4,339,721 | 800,548 | 33,666,154 | 168,575,536 | 6,380,037 | 3,455,887 | |||||||||||||||||
| 293,993 | 87,287 | — | — | — | — | |||||||||||||||||
| — | — | — | — | 2,188 | — | |||||||||||||||||
| 85,993 | 38,856 | 2,229,695 | 2,388,780 | — | — | |||||||||||||||||
| 23,818 | 9,406 | — | — | — | — | |||||||||||||||||
| (311,304) | (438,850 | ) | (177,402,967 | ) | (109,531,746 | ) | (18,568,538 | ) | (22,394,021 | ) | ||||||||||||
| (10,601) | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
4,421,620 |
|
497,247 | (141,507,118 | ) | 61,432,570 | (12,186,313 | ) | (18,938,134 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 5,563,789 | 684,690 | (42,314,891 | ) | 83,288,809 | 35,030,071 | 2,780,896 | ||||||||||||||||
| 3,713,890 | 3,029,200 | 407,359,488 | 324,070,679 | 130,257,610 | 127,476,714 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 9,277,679 | $ | 3,713,890 | $ | 365,044,597 | $ | 407,359,488 | $ | 165,287,681 | $ | 130,257,610 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 336,133 | 71,957 | 841,449 | 4,598,800 | 427,046 | 295,669 | |||||||||||||||||
| 23,061 | 7,643 | — | — | — | — | |||||||||||||||||
| 7,107 | 3,662 | 53,151 | 63,112 | — | — | |||||||||||||||||
| 1,974 | 889 | — | — | — | — | |||||||||||||||||
| (24,351) | (39,538 | ) | (4,313,565 | ) | (2,934,489 | ) | (1,273,523 | ) | (1,919,160 | ) | ||||||||||||
| (820) | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 343,104 | 44,613 | (3,418,965 | ) | 1,727,423 | (846,477 | ) | (1,623,491 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 42,402 | $ | 24,203 | $ | 1,152,889 | $ | 1,230,257 | — | — | |||||||||||||
| JUNE 30, 2011 | 49 |
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
| Sit Small Cap Growth Fund | Sit International Growth Fund | |||||||||||||||
| Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
|||||||||||||
| Operations: |
||||||||||||||||
| Net investment income (loss) |
($ | 710,137 | ) | ($ | 504,900 | ) | $ | 269,368 | $ | 197,740 | ||||||
| Net realized gain on investments and foreign currency transactions |
5,818,321 | 2,158,857 | 1,553,994 | 411,873 | ||||||||||||
| Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions |
18,521,998 | 10,263,345 | 4,265,504 | 1,060,153 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
23,630,182 | 11,917,302 | 6,088,866 | 1,669,766 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions from: |
||||||||||||||||
| Net investment income |
||||||||||||||||
| Common shares (Class I) |
— | — | (215,000 | ) | (228,000 | ) | ||||||||||
| Net realized gains on investments |
||||||||||||||||
| Common shares (Class I) |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total distributions |
— | — | (215,000 | ) | (228,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Capital share transactions: |
||||||||||||||||
| Proceeds from shares sold Common shares (Class I) |
20,574,826 | 4,964,717 | 659,523 | 701,521 | ||||||||||||
| Capital share proceeds (note 5) |
14,142 | — | 114,003 | 229,242 | ||||||||||||
| Reinvested distributions |
||||||||||||||||
| Common shares (Class I) |
— | — | 212,964 | 225,692 | ||||||||||||
| Payments for shares redeemed |
||||||||||||||||
| Common shares (Class I) |
(9,322,805 | ) | (15,386,598 | ) | (2,623,522 | ) | (3,021,002 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Increase (decrease) in net assets from capital transactions |
11,266,163 | (10,421,881 | ) | (1,637,032 | ) | (1,864,547 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total increase (decrease) in net assets |
34,896,345 | 1,495,421 | 4,236,834 | (422,781 | ) | |||||||||||
| Net assets: |
||||||||||||||||
| Beginning of period |
59,847,775 | 58,352,354 | 20,586,151 | 21,008,932 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of period* |
$ | 94,744,120 | $ | 59,847,775 | $ | 24,822,985 | $ | 20,586,151 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Capital transactions in shares: |
||||||||||||||||
| Sold |
||||||||||||||||
| Common shares (Class I) |
484,884 | 164,198 | 43,420 | 55,740 | ||||||||||||
| Reinvested distributions |
||||||||||||||||
| Common shares (Class I) |
— | — | 15,114 | 17,496 | ||||||||||||
| Redeemed |
||||||||||||||||
| Common shares (Class I) |
(235,906 | ) | (507,131 | ) | (184,894 | ) | (236,170 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) |
248,978 | (342,933 | ) | (126,360 | ) | (162,934 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * includes undistributed net investment income (loss) |
— | — | $ | 248,883 | $ | 187,073 | ||||||||||
| See accompanying notes to financial statements. | ||
| 50 | SIT MUTUAL FUNDS ANNUAL REPORT |
| Sit Developing Markets Growth Fund |
||||||||
| Year Ended June 30, 2011 |
Year Ended June 30, 2010 |
|||||||
| $ | 24,691 | $ | 8,636 | |||||
|
|
1,076,174 |
|
1,309,830 | |||||
|
|
2,547,316 |
|
999,287 | |||||
|
|
|
|
|
|||||
|
|
3,648,181 |
|
2,317,753 | |||||
|
|
|
|
|
|||||
| (10,903 | ) | (34,186 | ) | |||||
| (469,086 | ) | — | ||||||
|
|
|
|
|
|||||
| (479,989 | ) | (34,186 | ) | |||||
|
|
|
|
|
|||||
| 2,891,484 | 2,723,237 | |||||||
| — | — | |||||||
| 474,459 | 33,593 | |||||||
| (5,157,147 | ) | (4,200,831 | ) | |||||
|
|
|
|
|
|||||
| (1,791,204 | ) | (1,444,001 | ) | |||||
|
|
|
|
|
|||||
| 1,376,988 | 839,566 | |||||||
| 14,042,692 | 13,203,126 | |||||||
|
|
|
|
|
|||||
| $ | 15,419,680 | $ | 14,042,692 | |||||
|
|
|
|
|
|||||
| 128,031 | 136,017 | |||||||
| 20,683 | 1,635 | |||||||
| (224,006 | ) | (217,329 | ) | |||||
|
|
|
|
|
|||||
| (75,292 | ) | (79,677 | ) | |||||
|
|
|
|
|
|||||
| $ | 28,067 | $ | 10,903 | |||||
| JUNE 30, 2011 | 51 |
Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.
Sit Balanced Fund
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 14.18 | $ | 12.96 | $ | 16.32 | $ | 16.93 | $ | 15.14 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income 1 |
0.27 | 0.35 | 0.41 | 0.38 | 0.34 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments |
2.32 | 1.24 | (3.32 | ) | (0.66 | ) | 1.78 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
2.59 | 1.59 | (2.91 | ) | (0.28 | ) | 2.12 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.30 | ) | (0.37 | ) | (0.45 | ) | (0.33 | ) | (0.33 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 16.47 | $ | 14.18 | $ | 12.96 | $ | 16.32 | $ | 16.93 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 2 |
18.46 | % | 12.33 | % | (17.84 | %) | (1.72 | %) | 14.24 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 11,150 | $ | 10,550 | $ | 10,349 | $ | 12,939 | $ | 12,529 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 3 |
1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||
| Net investment income |
1.75 | % | 2.44 | % | 3.12 | % | 2.22 | % | 2.13 | % | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
40.84 | % | 46.79 | % | 30.26 | % | 54.96 | % | 41.63 | % | ||||||||||
| 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 and assumes reinvestment of distributions at net asset value. |
| 3 | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 52 | 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
| Years Ended June 30, | ||||||||||||||||||||
| Class I |
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 10.64 | $ | 9.60 | $ | 13.11 | $ | 14.42 | $ | 12.26 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income 1 |
0.21 | 0.19 | 0.23 | 0.23 | 0.24 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments |
3.23 | 1.03 | (3.09 | ) | (0.63 | ) | 2.35 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
3.44 | 1.22 | (2.86 | ) | (0.40 | ) | 2.59 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees 2 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.17 | ) | (0.18 | ) | (0.26 | ) | (0.22 | ) | (0.23 | ) | ||||||||||
| From net realized gains |
— | — | (0.39 | ) | (0.69 | ) | (0.20 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.17 | ) | (0.18 | ) | (0.65 | ) | (0.91 | ) | (0.43 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 13.91 | $ | 10.64 | $ | 9.60 | $ | 13.11 | $ | 14.42 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 3 |
32.58 | % | 12.71 | % | (21.59 | %) | (3.06 | %) | 21.48 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 328,057 | $ | 39,430 | $ | 28,305 | $ | 41,239 | $ | 37,674 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 4 |
1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||
| Net investment income |
1.59 | % | 1.70 | % | 2.35 | % | 1.68 | % | 1.81 | % | ||||||||||
| Portfolio turnover rate (excluding short-term securities) 5 |
14.67 | % | 31.84 | % | 69.10 | % | 38.86 | % | 34.02 | % | ||||||||||
| Years Ended June 30, | ||||||||||||||||||||
| Class S |
2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 10.61 | $ | 9.58 | $ | 13.08 | $ | 14.39 | $ | 12.26 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income 1 |
0.17 | 0.16 | 0.21 | 0.20 | 0.21 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments |
3.23 | 1.02 | (3.09 | ) | (0.63 | ) | 2.33 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
3.40 | 1.18 | (2.88 | ) | (0.43 | ) | 2.54 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees 2 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.14 | ) | (0.15 | ) | (0.23 | ) | (0.19 | ) | (0.21 | ) | ||||||||||
| From net realized gains |
— | — | (0.39 | ) | (0.69 | ) | (0.20 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.14 | ) | (0.15 | ) | (0.62 | ) | (0.88 | ) | (0.41 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 13.87 | $ | 10.61 | $ | 9.58 | $ | 13.08 | $ | 14.39 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 3 |
32.27 | % | 12.37 | % | (21.79 | %) | (3.27 | %) | 21.02 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 56,280 | $ | 24,894 | $ | 15,730 | $ | 14,300 | $ | 2,823 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 4 |
1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||
| Net investment income |
1.34 | % | 1.45 | % | 2.10 | % | 1.43 | % | 1.56 | % | ||||||||||
| 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 and assumes reinvestment of distributions at net asset value. |
| 4 | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 5 | The portfolio turnover rate presented is for the entire Fund. |
| JUNE 30, 2011 | 53 |
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
| Years Ended June 30, | Nine Months Ended June 30, |
|||||||||||
| Class I |
2011 | 2010 | 2009 | |||||||||
| Net Asset Value: |
||||||||||||
| Beginning of period |
$ | 10.41 | $ | 9.70 | $ | 10.00 | ||||||
|
|
|
|
|
|
|
|||||||
| Operations: |
||||||||||||
| Net investment income 1 |
0.20 | 0.17 | 0.15 | |||||||||
| Net realized and unrealized gains (losses) on investments |
2.95 | 0.68 | (0.36 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total from operations |
3.15 | 0.85 | (0.21 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Distributions to Shareholders: |
||||||||||||
| From net investment income |
(0.17 | ) | (0.14 | ) | (0.09 | ) | ||||||
| From net realized gains |
(0.13 | ) | — | — | ||||||||
|
|
|
|
|
|
|
|||||||
| Total distributions |
(0.30 | ) | (0.14 | ) | (0.09 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Asset Value: |
||||||||||||
| End of period |
$ | 13.26 | $ | 10.41 | $ | 9.70 | ||||||
|
|
|
|
|
|
|
|||||||
| Total investment return 2 |
30.55 | % | 8.79 | % | (2.06 | %)3 | ||||||
|
|
|
|
|
|
|
|||||||
| Net assets at end of period (000’s omitted) |
$ | 7,834 | $ | 2,832 | $ | 2,290 | ||||||
| Ratios: |
||||||||||||
| Expenses 4 |
1.25 | % | 1.25 | % | 1.25 | %5 | ||||||
| Net investment income |
1.57 | % | 1.48 | % | 2.30 | %5 | ||||||
| Portfolio turnover rate (excluding short-term securities) 6 |
21.84 | % | 21.60 | % | 17.69 | %3 | ||||||
| Years Ended June 30, | Nine Months Ended June 30, |
|||||||||||
| Class S |
2011 | 2010 | 2009 | |||||||||
| Net Asset Value: |
||||||||||||
| Beginning of period |
$ | 10.40 | $ | 9.70 | $ | 10.00 | ||||||
|
|
|
|
|
|
|
|||||||
| Operations: |
||||||||||||
| Net investment income 1 |
0.16 | 0.14 | 0.13 | |||||||||
| Net realized and unrealized gains (losses) on investments |
2.95 | 0.68 | (0.36 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total from operations |
3.11 | 0.82 | (0.23 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Distributions to Shareholders: |
||||||||||||
| From net investment income |
(0.14 | ) | (0.12 | ) | (0.07 | ) | ||||||
| From net realized gains |
(0.13 | ) | — | — | ||||||||
|
|
|
|
|
|
|
|||||||
| Total distributions |
(0.27 | ) | (0.12 | ) | (0.07 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Asset Value: |
||||||||||||
| End of period |
$ | 13.24 | $ | 10.40 | $ | 9.70 | ||||||
|
|
|
|
|
|
|
|||||||
| Total investment return 2 |
30.17 | % | 8.47 | % | (2.18 | %)3 | ||||||
|
|
|
|
|
|
|
|||||||
| Net assets at end of period (000’s omitted) |
$ | 1,444 | $ | 882 | $ | 740 | ||||||
| Ratios: |
||||||||||||
| Expenses 4 |
1.50 | % | 1.50 | % | 1.50 | %5 | ||||||
| Net investment income |
1.32 | % | 1.23 | % | 2.05 | %5 | ||||||
| 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 and assumes reinvestment of distributions at net asset value. |
| 3 | Not annualized. |
| 4 | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 5 | Annualized. |
| 6 | The portfolio turnover rate presented is for the entire Fund. |
| 54 | 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
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 34.75 | $ | 32.42 | $ | 43.41 | $ | 43.99 | $ | 37.60 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income 1 |
0.22 | 0.22 | 0.28 | 0.20 | 0.24 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments |
9.21 | 2.33 | (11.06 | ) | (0.65 | ) | 6.43 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
9.43 | 2.55 | (10.78 | ) | (0.45 | ) | 6.67 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees |
— | 2 | — | 2 | 0.01 | — | 2 | — | 2 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.22 | ) | (0.22 | ) | (0.22 | ) | (0.13 | ) | (0.28 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 43.96 | $ | 34.75 | $ | 32.42 | $ | 43.41 | $ | 43.99 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 3 |
27.18 | % | 7.80 | % | (24.77 | %) | (1.03 | %) | 17.79 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 365,045 | $ | 407,359 | $ | 324,071 | $ | 287,695 | $ | 125,741 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 4 |
1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | ||||||||||
| Net investment income |
0.54 | % | 0.58 | % | 0.85 | % | 0.46 | % | 0.59 | % | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
25.36 | % | 15.93 | % | 27.98 | % | 21.97 | % | 27.80 | % | ||||||||||
| 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 and assumes reinvestment of distributions at net asset value. |
| 4 | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| JUNE 30, 2011 | 55 |
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
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 11.57 | $ | 9.90 | $ | 14.83 | $ | 15.71 | $ | 13.01 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment loss 1 |
(0.06 | ) | (0.05 | ) | (0.03 | ) | (0.07 | ) | (0.04 | ) | ||||||||||
| Net realized and unrealized gains (losses) on investments |
4.37 | 1.72 | (4.81 | ) | (0.31 | ) | 2.74 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
4.31 | 1.67 | (4.84 | ) | (0.38 | ) | 2.70 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Capital share proceeds 2, 3 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees 3 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net realized gains |
— | — | (0.09 | ) | (0.50 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 15.88 | $ | 11.57 | $ | 9.90 | $ | 14.83 | $ | 15.71 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 4 |
37.25 | %5 | 16.87 | % | (32.51 | %) | (2.63 | %) | 20.75 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 165,288 | $ | 130,258 | $ | 127,477 | $ | 210,880 | $ | 205,256 | ||||||||||
| Ratios: 6 |
||||||||||||||||||||
| Expenses (without waiver) 7 |
1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||
| Expenses (with waiver) 7 |
1.20 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||
| Net investment loss (without waiver) |
(0.49 | %) | (0.52 | %) | (0.40 | %) | (0.52 | %) | (0.41 | %) | ||||||||||
| Net investment loss (with waiver) |
(0.44 | %) | (0.42 | %) | (0.30 | %) | (0.42 | %) | (0.31 | %) | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
26.98 | % | 20.39 | % | 18.07 | % | 34.61 | % | 40.08 | % | ||||||||||
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | The Fund accounted for proceeds during the year from market timing settlements. See Note 5. |
| 3 | Amount represents less than $0.01 per share. |
| 4 | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
| 5 | Impact on total return from capital share proceeds was less than 0.01%. |
| 6 | The ratio information is calculated based on average daily net assets. Total Fund expenses are calculated at 1.25% of average daily net assets. The investment adviser voluntarily limited expenses to 1.15% of average daily net assets through December 31, 2010 at which time the agreement was terminated. |
| 7 | 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. |
| 56 | 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
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 31.32 | $ | 25.89 | $ | 37.44 | $ | 40.14 | $ | 33.46 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment loss 1 |
(0.36 | ) | (0.24 | ) | (0.16 | ) | (0.37 | ) | (0.27 | ) | ||||||||||
| Net realized and unrealized gains (losses) on investments |
12.89 | 5.67 | (11.39 | ) | (2.33 | ) | 6.95 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
12.53 | 5.43 | (11.55 | ) | (2.70 | ) | 6.68 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Capital share proceeds 2 |
0.01 | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees 3 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 43.86 | $ | 31.32 | $ | 25.89 | $ | 37.44 | $ | 40.14 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 4 |
40.04 | %5 | 20.97 | % | (30.85 | %) | (6.73 | %) | 19.96 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 94,744 | $ | 59,848 | $ | 58,352 | $ | 93,527 | $ | 105,800 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 6 |
1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||
| Net investment loss |
(0.91 | %) | (0.80 | %) | (0.61 | %) | (0.93 | %) | (0.79 | %) | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
30.33 | % | 22.41 | % | 26.19 | % | 37.20 | % | 38.79 | % | ||||||||||
| 1 | The net investment income (loss) per share is based on average shares outstanding for the period. |
| 2 | The Fund accounted for proceeds during the year from market timing settlements. See Note 5. |
| 3 | Amount represents less than $0.01 per share. |
| 4 | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
| 5 | Impact on total return from capital share proceeds was 0.03%. |
| 6 | 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. |
| JUNE 30, 2011 | 57 |
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
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 11.67 | $ | 10.90 | $ | 17.80 | $ | 18.70 | $ | 15.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income 1 |
0.16 | 0.11 | 0.13 | 0.15 | 0.20 | |||||||||||||||
| Net realized and unrealized gains (losses) on investments |
3.39 | 0.65 | (6.95 | ) | (0.85 | ) | 3.17 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
3.55 | 0.76 | (6.82 | ) | (0.70 | ) | 3.37 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Capital share proceeds 2 |
0.07 | 0.13 | 0.10 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees 3 |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.13 | ) | (0.12 | ) | (0.18 | ) | (0.20 | ) | (0.15 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 15.16 | $ | 11.67 | $ | 10.90 | $ | 17.80 | $ | 18.70 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 4 |
31.08 | %5 | 8.10 | %5 | (37.71 | %)5 | (3.82 | %) | 21.87 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 24,823 | $ | 20,586 | $ | 21,009 | $ | 37,714 | $ | 39,511 | ||||||||||
| Ratios: 6 |
||||||||||||||||||||
| Expenses (without waiver) 7 |
1.61 | % | 1.85 | % | 1.85 | % | 1.85 | % | 1.85 | % | ||||||||||
| Expenses (with waiver) 7 |
1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||
| Net investment income (without waiver) |
1.01 | % | 0.50 | % | 0.74 | % | 0.43 | % | 0.84 | % | ||||||||||
| Net investment income (with waiver) |
1.12 | % | 0.85 | % | 1.09 | % | 0.78 | % | 1.19 | % | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
35.95 | % | 25.09 | % | 33.12 | % | 16.83 | % | 17.25 | % | ||||||||||
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | The Fund accounted for proceeds during the year from market timing settlements. See Note 5. |
| 3 | Amount represents less than $0.01 per share. |
| 4 | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
| 5 | Impact on total return from capital share proceeds was 0.60%, 1.20%, and 0.57% for the years ended June 30, 2011, 2010, and 2009, respectively. |
| 6 | The ratio information is calculated based on average daily net assets. Effective November 1, 2010, total Fund expenses are limited to 1.50% of average daily net assets. Prior to this date, expenses were calculated at a higher rate. However, during all of the periods above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. |
| 7 | In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 58 | SIT MUTUAL FUNDS 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
| Years Ended June 30, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Net Asset Value: |
||||||||||||||||||||
| Beginning of period |
$ | 19.00 | $ | 16.13 | $ | 25.97 | $ | 24.94 | $ | 17.38 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Operations: |
||||||||||||||||||||
| Net investment income (loss) 1 |
0.03 | 0.01 | 0.04 | (0.07 | ) | 0.05 | ||||||||||||||
| Net realized and unrealized gains (losses) on investments |
4.90 | 2.90 | (9.15 | ) | 1.40 | 7.55 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from operations |
4.93 | 2.91 | (9.11 | ) | 1.33 | 7.60 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Capital share proceeds 2 |
— | — | 0.09 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Redemption fees |
— | — | 3 | — | 0.01 | 0.01 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Distributions to Shareholders: |
||||||||||||||||||||
| From net investment income |
(0.02 | ) | (0.04 | ) | — | (0.04 | ) | (0.05 | ) | |||||||||||
| From net realized gains |
(0.67 | ) | — | (0.82 | ) | (0.27 | ) | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.69 | ) | (0.04 | ) | (0.82 | ) | (0.31 | ) | (0.05 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value: |
||||||||||||||||||||
| End of period |
$ | 23.24 | $ | 19.00 | $ | 16.13 | $ | 25.97 | $ | 24.94 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment return 4 |
25.95 | % | 18.05 | % | (33.73 | %)5 | 5.26 | % | 43.82 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net assets at end of period (000’s omitted) |
$ | 15,420 | $ | 14,043 | $ | 13,203 | $ | 23,195 | $ | 18,430 | ||||||||||
| Ratios: |
||||||||||||||||||||
| Expenses 6 |
2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||||
| Net investment income (loss) |
0.15 | % | 0.06 | % | 0.24 | % | (0.27 | %) | 0.25 | % | ||||||||||
| Portfolio turnover rate (excluding short-term securities) |
19.14 | % | 19.90 | % | 13.56 | % | 9.40 | % | 16.25 | % | ||||||||||
| 1 | The net investment income per share is based on average shares outstanding for the period. |
| 2 | The Fund accounted for proceeds during the year from market timing settlements. See Note 5. |
| 3 | Amount represents less than $0.01 per share. |
| 4 | Total investment return is based on the change in net asset value of a share during the period and assumes reinvestment of distributions at net asset value. |
| 5 | Impact on total return from capital share proceeds was 0.37%. |
| 6 | 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. |
| JUNE 30, 2011 | 59 |
Year Ended June 30, 2011
| (1) | Organization |
Sit Mutual Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Balanced, Sit Dividend Growth, Sit Global Dividend Growth, Sit Small Cap Growth, Sit International Growth, and Sit Developing Markets Growth are series funds of Sit Mutual Funds, Inc.
This report covers the equity funds of the Sit Mutual Funds (the Funds). Each fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows:
| Fund |
Investment Objective | |
| Balanced | Long-term growth consistent with the preservation of principal and to provide regular income. | |
| Dividend Growth | Provide current income that exceeds the dividend yield of the S&P 500 Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. | |
| Global Dividend Growth | Provide current income that exceeds the dividend yield of a composite index (60% S&P 500 Index and 40% MSCI EAFE Index) and that grows over a period of years. Secondarily, maximize long-term capital appreciation. | |
| Large Cap Growth Fund | Maximize long-term capital appreciation. | |
| Mid Cap Growth Fund | 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 and Global Dividend Growth Funds offer Class I and Class S shares. Both classes of shares have identical voting, dividend, and liquidation rights. The distribution fee differs among classes, the Class S shares have a 0.25% distribution fee, whereas Class I has no distribution fee. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.
| (2) | Significant Accounting Policies |
Investments in Securities
Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available at the last reported bid price. The sale and bid prices or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Debt securities maturing in more than 60 days are priced by an independent pricing service. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality, and prepayment speeds as applicable. When market quotations are not readily available, or when the Adviser becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Board of Directors. The procedures consider, among 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, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis.
| 60 | SIT MUTUAL FUNDS ANNUAL REPORT |
Fair Value Measurements
The inputs and valuations techniques used to measure fair value of the Funds’ net assets are summarized into three levels as described in the hierarchy below:
| • | Level 1 – quoted prices for 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. 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.
For the year ended June 30, 2011, there were no transfers between levels 1, 2 and 3.
A summary of the levels for the Funds’ investments as of June 30, 2011 is included with the Funds’ schedule of investments.
New Accounting Pronouncements
In May 2011, FASB issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements.
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, 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. E.S.T). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses.
The Global Dividend Growth, International Growth and Developing Markets Growth Funds may enter into forward foreign currency exchange contracts generally for operational purposes, but the Adviser may occasionally utilize contracts to protect against adverse exchange rate fluctuation. Any gains (losses) generated by these contracts are disclosed separately on the statement of operations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract.
| JUNE 30, 2011 | 61 |
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 2011 (Continued)
Federal Taxes
The Funds’ policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis.
Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of June 30, 2011, no provision for income would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise returns for the 2008, 2009 and 2010 tax years for which the applicable statutes of limitations have not expired remain subject to examination by the Internal Revenue Service and state departments of revenue.
At June 30, 2011, 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 |
$ | 2,027,284 | ($ | 175,697 | ) | $ | 1,851,587 | $ | 9,401,368 | |||||||
| Dividend Growth |
34,976,061 | (3,135,120 | ) | 31,840,941 | 355,789,097 | |||||||||||
| Global Dividend Growth |
1,324,998 | (108,039 | ) | 1,216,959 | 8,062,726 | |||||||||||
| Large Cap Growth |
83,919,495 | (2,446,732 | ) | 81,472,763 | 284,226,582 | |||||||||||
| Mid Cap Growth |
54,603,128 | (4,530,834 | ) | 50,072,294 | 116,143,182 | |||||||||||
| Small Cap Growth |
29,437,826 | (3,145,631 | ) | 26,292,195 | 68,470,076 | |||||||||||
| International Growth |
6,164,365 | (623,652 | ) | 5,540,713 | 18,877,792 | |||||||||||
| Developing Markets Growth |
6,458,080 | (377,982 | ) | 6,080,098 | 9,360,997 | |||||||||||
Net investment income and net realized gains differ for financial statement and tax purposes because of losses deferred due to “wash sale” transactions. A “wash sale” occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). The character of distributions made during the year from net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid during the fiscal years ended June 30, 2011 and 2010 were as follows:
Year Ended June 30, 2011:
| Ordinary Income | Long Term Capital Gain |
Total | ||||||||||
| Balanced |
$ | 220,001 | — | $ | 220,001 | |||||||
| Dividend Growth (Class I) |
1,576,972 | — | 1,576,972 | |||||||||
| Dividend Growth (Class S) |
394,029 | 394,029 | ||||||||||
| Global Dividend Growth (Class I) |
56,472 | $ | 34,809 | 91,281 | ||||||||
| Global Dividend Growth (Class S) |
12,874 | 10,956 | 23,830 | |||||||||
| Large Cap Growth |
2,300,000 | — | 2,300,000 | |||||||||
| Mid Cap Growth |
— | — | — | |||||||||
| Small Cap Growth |
— | — | — | |||||||||
| International Growth |
215,000 | — | 215,000 | |||||||||
| Developing Markets Growth |
10,903 | 469,086 | 479,989 | |||||||||
| 62 | SIT MUTUAL FUNDS ANNUAL REPORT |
Year Ended June 30, 2010:
| Ordinary Income | Long Term Capital Gain |
Total | ||||||||||
| Balanced |
$ | 293,000 | — | $ | 293,000 | |||||||
| Dividend Growth (Class I) |
548,746 | — | 548,746 | |||||||||
| Dividend Growth (Class S) |
330,254 | — | 330,254 | |||||||||
| Global Dividend Growth (Class I) |
35,594 | — | 35,594 | |||||||||
| Global Dividend Growth (Class S) |
9,406 | — | 9,406 | |||||||||
| Large Cap Growth |
2,475,000 | — | 2,475,000 | |||||||||
| Mid Cap Growth |
— | — | — | |||||||||
| Small Cap Growth |
— | — | — | |||||||||
| International Growth |
228,000 | — | 228,000 | |||||||||
| Developing Markets Growth |
34,186 | — | 34,186 | |||||||||
As of June 30, 2011, the components of distributable earnings on a tax basis were as follows:
| Undistributed Ordinary Income |
Accumulated Gain (Loss) |
Unrealized Appreciation (Depreciation) |
||||||||||
| Balanced |
$ | 21,559 | ($ | 1,802,240 | ) | $ | 1,851,587 | |||||
| Dividend Growth |
1,154,505 | 1,127,323 | 31,840,941 | |||||||||
| Global Dividend Growth |
42,402 | 114,328 | 1,217,239 | |||||||||
| Large Cap Growth |
1,152,889 | (29,871,497 | ) | 81,472,763 | ||||||||
| Mid Cap Growth |
— | (3,801,578 | ) | 50,072,294 | ||||||||
| Small Cap Growth |
— | (12,218,098 | ) | 26,292,195 | ||||||||
| International Growth |
248,883 | (9,664,616 | ) | 5,549,905 | ||||||||
| Developing Markets Growth |
28,979 | 955,759 | 6,080,191 | |||||||||
On the statement of assets and liabilities, as a result of permanent book-to-tax differences, reclassification adjustments were made to the following capital accounts:
| Undistributed Net Investment Income |
Accumulated Net Realized Gain (Loss) |
Additional Paid-in Capital |
||||||||||
| Balanced |
($ | 9,395 | ) | $ | 2,763,393 | ($ | 2,753,998 | ) | ||||
| Dividend Growth |
(89,966 | ) | 89,966 | — | ||||||||
| Global Dividend Growth |
(1,907 | ) | (2,043 | ) | 3,950 | |||||||
| Large Cap Growth |
— | 1 | (1 | ) | ||||||||
| Mid Cap Growth |
682,247 | — | (682,247 | ) | ||||||||
| Small Cap Growth |
710,137 | 18,838,279 | (19,548,416 | ) | ||||||||
| International Growth |
7,442 | 13,382,831 | (13,390,273 | ) | ||||||||
| Developing Markets Growth |
3,376 | (3,375 | ) | (1 | ) | |||||||
These differences were primarily attributable to return of capital dividends received, non-deductible net operating losses and capital loss carryforwards expiring.
| JUNE 30, 2011 | 63 |
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 2011 (Continued)
Net capital loss carryovers and post-October capital losses, if any, as of June 30, 2011, are available to offset future realized capital gains and thereby reduce future capital gains distributions. The net capital loss carryovers and the post-October capital losses deferred as of June 30, 2011, were as follows:
| Capital Loss Carryover Expiring in: |
Net
Capital Loss Carryover |
Post-October Capital Loss Deferral |
Accumulated Capital and Other Losses |
|||||||||||||||||||||
| 2012 | 2013 | 2014-2019 | ||||||||||||||||||||||
| Balanced |
$ | 1,023,296 | $ | 117,820 | $ | 661,124 | $ | 1,802,240 | — | $ | 1,802,240 | |||||||||||||
| Large Cap Growth |
3,060,968 | — | 26,810,529 | 29,871,497 | — | 29,871,497 | ||||||||||||||||||
| Mid Cap Growth |
— | — | 3,801,578 | 3,801,578 | — | 3,801,578 | ||||||||||||||||||
| Small Cap Growth |
3,736,397 | — | 8,481,701 | 12,218,098 | — | 12,218,098 | ||||||||||||||||||
| International Growth |
5,988,227 | 63,389 | 3,613,000 | 9,664,616 | — | 9,664,616 | ||||||||||||||||||
For the year ended June 30, 2011, the Funds had utilized capital losses and expired capital losses as follows:
| Utilized | Expiring In | Expired | ||||||||
| Balanced |
$ | 156,536 | 2011 | $ | 2,753,998 | |||||
| Dividend Growth |
1,250,228 | 2017 | — | |||||||
| 2,016,823 | 2018 | |||||||||
| Large Cap Growth |
8,969,766 | 2011 | — | |||||||
| 1,554,183 | 2012 | |||||||||
| Mid Cap Growth |
1,264,618 | 2011 | — | |||||||
| 250,465 | 2012 | |||||||||
| 8,042,330 | 2018 | |||||||||
| Small Cap Growth |
5,817,241 | 2011 | 18,838,279 | |||||||
| International Growth |
1,543,373 | 2011 | 13,390,272 | |||||||
The Regulated Investment Company Modernization Act of 2010 (“Act”) was enacted on December 22, 2010. In general, the provisions of the Act will be effective for Funds with fiscal years ending after December 22, 2011. Under the Act, a Fund will be permitted to carry forward capital losses for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses, and will not be considered exclusively short-term as under previous law.
Distributions
Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds’ capital stock. Distributions from net investment income, if any, are declared and paid quarterly for the Balanced, Dividend Growth and Global Dividend Growth Funds and declared and paid annually for Developing Markets Growth, Small Cap Growth, International Growth, Mid Cap Growth, and Large Cap Growth Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds.
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.
| 64 | SIT MUTUAL FUNDS ANNUAL REPORT |
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results. Actual results could differ from those estimates.
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, 2011, were as follow:
| Purchases | Proceeds | |||||||||||||||
| U.S. Government | Other | U.S. Government | Other | |||||||||||||
| Balanced |
$ | 223,756 | $ | 4,229,924 | $ | 330,208 | $ | 5,130,711 | ||||||||
| Dividend Growth |
— | 299,734,697 | — | 27,662,555 | ||||||||||||
| Global Dividend Growth |
— | 5,574,252 | — | 1,253,182 | ||||||||||||
| Large Cap Growth |
— | 103,590,429 | — | 248,096,725 | ||||||||||||
| Mid Cap Growth |
— | 41,570,765 | — | 56,403,373 | ||||||||||||
| Small Cap Growth |
— | 33,376,832 | — | 23,153,023 | ||||||||||||
| International Growth |
— | 8,360,726 | — | 10,087,149 | ||||||||||||
| Developing Markets Growth |
— | 2,991,887 | — | 5,155,268 | ||||||||||||
| (4) | Affiliated Fees and Transactions |
Investment Adviser
The Funds each have entered into an investment management agreement with Sit Investment Associates, Inc. (SIA), under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. The current fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of:
| Balanced |
1.00 | % | ||
| Dividend Growth Fund Class I and Class S |
1.00 | % | ||
| Global Dividend Growth Fund Class I and Class S |
1.25 | % | ||
| Large Cap Growth |
1.00 | % | ||
| Mid Cap Growth |
1.25 | %* | ||
| Small Cap Growth |
1.50 | % | ||
| International Growth |
1.50 | %** | ||
| Developing Markets Growth |
2.00 | % |
| * | The Adviser agreed to limit the management fee of the Mid Cap Growth Fund to 1.15% of the Fund’s average daily net assets for the period July 1, 2010 to December 31, 2010, at which time the agreement was terminated. |
| ** | The Adviser agreed to limit the management fee of the International Growth Fund to 1.50% of the Fund’s average daily net assets for the period July 1, 2010 to October 31, 2010, at which time the agreement was terminated. |
| JUNE 30, 2011 | 65 |
NOTES TO FINANCIAL STATEMENTS
Year Ended June 30, 2011 (Continued)
SIA is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, 12b-1 fees and other transaction charges relating to investing activities).
In addition to the annual management fees, the Class S shares of Global Dividend Growth and Dividend Growth Funds also have a 0.25% annual distribution (12b-1) fee, which is used to pay for distribution fees related to the sale and distribution of its shares.
Transactions with affiliates
The investment adviser, affiliates of the investment adviser, directors and officers of the Funds as a whole owned the following shares as of June 30, 2011:
| Shares | % Shares Outstanding |
|||||||
| Balanced |
200,449 | 29.6 | ||||||
| Dividend Growth |
700,078 | 2.5 | ||||||
| Global Dividend Growth |
302,325 | 43.2 | ||||||
| Large Cap Growth |
332,514 | 4.0 | ||||||
| Mid Cap Growth |
2,295,910 | 22.1 | ||||||
| Small Cap Growth |
636,473 | 29.5 | ||||||
| International Growth |
550,059 | 33.6 | ||||||
| Developing Markets Growth |
190,382 | 28.7 | ||||||
| (5) | Capital Share Activity |
Market Timing Settlements
The International Growth Fund expects to receive a settlement for approximately $229,242 from market timing settlements payable to the Fund for the fiscal year ended June 30, 2010. The Mid Cap Growth Fund, Small Cap Growth Fund and International Growth Fund expect to receive a settlement for approximately $2,188, $14,142 and $114,003, respectively from market timing settlements payable to the Funds for the fiscal year ended June 30, 2011. These amounts are recorded upon notification of settlement proceeds from an appropriate authority and separately reflected on the statements of changes in net assets and in the financial highlights.
The impact on the Funds’ performance for the years ended June 30, 2011 and 2010 was:
| Year Ended June 30, 2011 | Year Ended June 30, 2010 | |||||||||||||||
| Proceeds | Impact on Total Return |
Proceeds | Impact on Total Return |
|||||||||||||
| Mid Cap Growth |
$ | 2,188 | — | * | — | — | ||||||||||
| Small Cap Growth |
14,142 | 0.03 | % | — | — | |||||||||||
| International Growth |
114,003 | 0.60 | % | $ | 229,242 | 1.20 | % | |||||||||
| * less than 0.01% |
||||||||||||||||
| 66 | SIT MUTUAL FUNDS ANNUAL REPORT |
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, 2011, the Funds received the following redemptions fees:
| Class I | Class S | |||||||
| Dividend Growth |
$ | 1,187 | $ | 295 | ||||
| Large Cap Growth |
1,929 | — | ||||||
| Mid Cap Growth |
95 | — | ||||||
| Small Cap Growth |
2,366 | — | ||||||
| International Growth |
17 | — | ||||||
| (6) | Subsequent Events |
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued, and has determined that there were no subsequent events that would require disclosure in or adjustments to the financial statements.
| JUNE 30, 2011 | 67 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders:
Sit Mutual Funds, Inc.
Sit Large Cap Growth Fund, Inc.
Sit Mid Cap Growth Fund, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global 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, Inc., and Sit Mid Cap Growth Fund, Inc., as of June 30, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and 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 conducted our audits in accordance with auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit Small Cap Growth Fund, Sit International Growth Fund, Sit Developing Markets Growth Fund, Sit Large Cap Growth Fund, and Sit Mid Cap Growth Fund as of June 30, 2011, and the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
KPMG LLP
Minneapolis, Minnesota
August 22, 2011
| 68 | SIT MUTUAL FUNDS ANNUAL REPORT |
| JUNE 30, 2011 | 69 |
FEDERAL TAX INFORMATION (Unaudited)
Sit Equity Funds
| 70 | SIT MUTUAL FUNDS ANNUAL REPORT |
INFORMATION ABOUT DIRECTORS AND OFFICERS (Unaudited)
The Sit Mutual Funds are a family of 12 no-load mutual funds. The eight 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 Small Cap Growth Fund, Sit Dividend Growth Fund, and the Sit Global Dividend Growth Fund (the “Funds” or individually, a “Fund”). The four bond funds within the Sit Mutual Fund family are described in a Bond Funds’ Annual Report. The Sit Mid Cap Growth Fund and Sit Large Cap Growth Fund, and the corporate issuer of the Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit Small Cap Growth Fund, Sit Dividend Growth Fund, and Sit Global Dividend Growth Fund have a Board of Directors and officers. Pursuant to Minnesota law, the Boards of Directors are responsible for the management of the Funds and the establishment of the Funds’ policies. The officers of the Funds manage the day-to-day operation of the Funds. Information pertaining to the directors and officers of the Funds is set forth below as of the date of this report. The business address, unless otherwise noted below, is that of the Funds’ investment adviser – 3300 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402. The Boards have a separate Audit Committee. The Stock Funds’ SAI has additional information about the Funds’ directors and is available without charge upon request by calling the Sit Funds at 800-332-5580.
| Name, Age, and Position with the Fund |
Term of Office (1) and Length of Time Served |
Principal Occupation(s) During Past Five Years |
Number of Funds in Fund Complex Overseen by Director |
Other Directorships Held by Director (3) | ||||
| INTERESTED DIRECTORS: |
||||||||
| Roger J. Sit (2) Age: 49 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, Inc. (“SF”); Chairman of SIA Securities Corp. (the “Distributor”). | 12 | None. | ||||
| William E. Frenzel (2) Age: 82 Director |
Director since 1991 or the Fund’s inception if later. | Guest Scholar at The Brookings Institution and member of several government policy committees, foundations and organizations; Director of the Adviser; Director of SF. | 12 | None. | ||||
| INDEPENDENT DIRECTORS: |
||||||||
| John P. Fagan Age: 81 Director |
Director since 2006 or the Fund’s inception, if later. | Honorary member of Board of St. Joseph’s College in Rensselar, Indiana. | 12 | None. | ||||
| Sidney L. Jones Age: 77 Director |
Director since 1993 or the Fund’s inception, if later: Director from 1988 to 1989. | Lecturer, Washington Campus Consortium of 17 Universities. | 12 | None. | ||||
| Bruce C. Lueck Age: 70 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. | 12 | None. | ||||
| Donald W. Phillips Age: 63 Director |
Director of the International Fund since 1993, and since 1990 or the Fund’s inception if later for all other Funds. | Chairman and CEO of WP Global Partners Inc., 7/05 to present; CEO and CIO of WestLB Asset Management (USA) LLC, 4/00 to 4/05. | 12 | None. | ||||
| Barry N. Winslow Age: 63 Director |
Director since 2010. | Vice-Chairman of TCF Financial Corporation, 7/08 to present; COO 2006 to 2007; President of the national charter 2001-2006. | 12 | TCF Financial Corporation. | ||||
| JUNE 30, 2011 | 71 |
INFORMATION ABOUT DIRECTORS AND OFFICERS (Unaudited) (Continued)
| Name, Age, and Position with the Fund |
Term of Office (1) and Length of Time Served |
Principal Occupation(s) During Past Five Years |
Number of Funds in Fund Complex Overseen by Director |
Other Directorships Held by Director (3) | ||||
| OFFICERS: |
||||||||
| Mark H. Book Age: 48 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: 42 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 A. Doty Age: 44 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: 45 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 | ||||
| Michael J. Radmer 50 S. 6th Street Minneapolis, MN 55402 Age: 66 Secretary |
Officer since 1984; Re-Elected by the Boards annually. | Partner of the Funds’ general counsel, Dorsey & Whitney, LLP. | N/A | N/A | ||||
| Paul E. Rasmussen Age: 50 Vice President, Treasurer & 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: 45 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: 42 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 (3) Age: 51 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 his successor is duly elected and shall qualify. |
| 2 | Directors who are deemed to be “interested persons” of the Funds as that term is defined by the Investment Company Act of 1940. Mr. Sit is considered an “interested person” because he is a an officer of Sit Investment Associates, Inc., the Fund’s investment adviser. Mr. Frenzel is deemed to be an interested person because he is a director and shareholder of the Fund’s 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. |
| 72 | SIT MUTUAL FUNDS ANNUAL REPORT |
ADDITIONAL INFORMATION (Unaudited)
PROXY VOTING
Each fund follows certain policies and procedures for voting proxies for securities held in each portfolio. A description of the Funds’ proxy voting policies and procedures is available without charge upon request by calling the Funds at 1-800-332-5580.
Information regarding how each Fund voted proxies relating to its portfolio securities during the most recent twelve-month period ended June 30 is available without charge upon request by calling the Funds at 1-800-332-5580, and is available on the U.S. Securities and Exchange Commission’s website at www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds’ file their complete schedules of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Qs are available without charge upon request by calling the Funds at 1-800-332-5580 and are available on the SEC’s website at www.sec.gov. In addition, the Funds’ Form N-Qs may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.
| JUNE 30, 2011 | 73 |
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. John P. Fagan, 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. Fagan, 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:
| 2011 | 2010 | |||||||||||||||||||||||||||||||
| Audit | Audit | Tax | Other | Audit | Audit | Tax | Other | |||||||||||||||||||||||||
| Fees | Related | Fees | Fees | Fees | Related | Fees | Fees | |||||||||||||||||||||||||
| Fiscal year ended June 30 |
||||||||||||||||||||||||||||||||
| Sit Mutual Funds, Inc. |
||||||||||||||||||||||||||||||||
| Sit International Growth Fund (series A) |
23,200 | 0 | 3,825 | 0 | 22,700 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
| Sit Balanced Fund (series B) |
15,800 | 0 | 3,825 | 0 | 15,500 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
| Sit Developing Markets Growth Fund (series C) |
15,100 | 0 | 3,825 | 0 | 14,800 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
| Sit Small Cap Growth Fund (series D) |
18,700 | 0 | 3,825 | 0 | 18,300 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
| Sit Dividend Growth Fund (series G) |
15,200 | 0 | 3,825 | 0 | 14,900 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
| Sit Global Dividend Growth Fund (series H) |
15,200 | 0 | 3,825 | 0 | 14,900 | 0 | 5,200 | 0 | ||||||||||||||||||||||||
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| Total Mutual Funds, Inc. |
103,200 | 0 | 22,950 | 0 | 101,100 | 0 | 31,200 | 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 $4,000 and $4,000, respectively.
(h) The registrant’s audit committee has determined that the provision of non-audit services rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is considered compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6: Schedule of Investments.
The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8: Portfolio Managers of Closed-End Management Investments Companies.
Not applicable to open-end investment companies.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11: Controls and Procedures -
(a) Based on their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
(b) There were no significant changes in the Registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, and there were no corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits:
(a) The following exhibits are attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sit Mutual Funds, Inc.
| By (Signature and Title)* | /s/ Paul E. Rasmussen | |
| Paul E. Rasmussen | ||
| Vice President, Treasurer |
Date August 30, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ Paul E. Rasmussen | |
| Paul E. Rasmussen | ||
| Vice President, Treasurer |
Date August 30, 2011
| By (Signature and Title) | /s/ Roger J. Sit | |
| Roger J. Sit | ||
| Chairman |
Date August 30, 2011