SIT Mutual Funds, Inc.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06373
Sit Mutual Funds, Inc.
(Exact name of registrant as specified in charter)
80 South Eighth
Street
3300 IDS Center
Minneapolis, MN 55402
(Address of principal executive offices)
Paul E. Rasmussen, VP Treasurer
Sit Mutual Funds, Inc.
80 South Eighth Street
3300 IDS Center
Minneapolis, MN 55402
(Name and address of agent for service)
Copy to:
Mike Radmer, Esq.
Dorsey & Whitney
Suite 1500
50 South Sixth Street
Minneapolis, MN 55402-1498
Registrant’s telephone number,
including area code: (612) 332-3223
Date of fiscal year end: June 30, 2012
Date of reporting period: December 31, 2011
| Item 1: |
Reports to Stockholders |
Semi-Annual Report
December 31, 2011
Balanced Fund
Dividend Growth
Fund
Global Dividend Growth Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
International Growth Fund
Developing Markets Growth Fund
Sit Mutual Funds
|
| Sit Mutual Funds
STOCK FUNDS SEMI-ANNUAL REPORT TABLE OF CONTENTS |
|
This document must be preceded or accompanied by a Prospectus.
CHAIRMAN’S LETTER
February 6, 2012
Dear Fellow Shareholders:
Stocks ended 2011 on a positive note, with a fourth quarter rally capping
off a highly volatile year in the financial markets. For example, most equity indices posted a double-digit decline during the third quarter of 2011, followed by a double-digit gain in the final quarter. The European sovereign debt crisis took
center stage during the second half of the year, with a moderation in growth in developing economies, particularly China, causing additional concern. Despite mounting economic uncertainties in key regions in the world, recent U.S. economic data has
been supportive of stable, albeit modest, Gross Domestic Product (GDP) growth over the near term. Importantly, data has pointed to improvement in the job market, with gains in private payrolls only somewhat dampened by losses in the public sector.
Consumer spending, which accounts for slightly over 70% of the GDP calculation, continues to be post modest gains. While housing has yet to show improvement, auto sales have moved sequentially higher as consumers finally begin to replace older
vehicles. And finally, the manufacturing sector continues to expand at a slow, but steady, pace. Overall, we expect “more of the same” in 2012: subpar economic growth, modest employment gains, and subdued inflation.
Without question, Europe is going to be the focal point for both economists and investors in 2012. With confidence
eroding and austerity measures impacting many regions within Europe, our expectation is that a modest recession is likely in Euroland in 2012. The central issue remains elevated debt levels in several countries, particularly Portugal, Italy,
Ireland, Greece and Spain (the PIIGS). These countries are finding it very difficult to issue debt, as investors are demanding sky-high interest rates to compensate for the risk of default. Since many large European banks (even in Germany and
France) hold large amounts of debt in the PIIGS nations, a default could severely damage capital positions. Simply put, it is critical that policymakers implement a comprehensive solution to the crisis before the economic fallout becomes more
painful. With the U.S. economy growing only modestly and China’s growth decelerating, a severe recession in Europe will undoubtedly spread globally. Outside of Europe, China represents the other major “wild card” in 2012. While
Chinese economic growth remains robust, there has been a slowdown in recent quarters, largely due to the government’s actions to intentionally slow the pace of growth due to inflation concerns. While we expect China to successfully engineer a
soft landing, external factors present the biggest downside risk to the country’s economic growth. Again, the central risk is Europe. The European region is China’s largest trading partner, and a sharp recession will have a direct negative
impact on the Chinese economy.
Equity Strategy
As our forecast for a subpar recovery within the U.S. continues to unfold, we expect elevated levels of volatility to
continue in the financial markets, particularly as external factors like the European debt crisis continue to create headwinds for the U.S. and other parts of the world.
While investors remain cautious given the multitude
of challenges to overcome, we believe there are still many factors that can push stock prices higher in the year ahead. First, as previously discussed, economic data within the U.S. has been relatively strong over the past few months, as even the
beleaguered job market is showing some signs of life. Second, the rate of inflation has cooled and interest rates remain at very low levels. Third, corporate earnings should continue to grind higher, albeit at a decelerating rate. Fourth, valuations
for stocks appear quite reasonable. For example, we estimate that the median price-earnings ratio for stocks within the S&P
500® has fallen from 14.4x projected earnings one year ago to 12.8x today. This current P/E appears very
reasonable relative to history and the current low levels of interest rates and inflation. And finally, corporations are flush with cash (nearly $2.1 trillion rests on corporate balance sheets), and companies are generating record levels of free
cash flow. This should support higher dividends and significant share repurchases in the year ahead.
Since
it is our view that volatility is likely to continue in the year ahead, we believe it is prudent to remain diversified among sectors, with a bias towards those benefiting from the slow, but steady, improvement in economic conditions. Throughout the
Sit Equity Funds, some favored sectors include electronic technology, energy minerals and producer manufacturing. These are all areas benefiting from growth in emerging markets and a cyclical improvement in capital spending in many regions of the
world. Regardless of sector, however, our focus remains on firms that have strong balance sheets, free cash flow generation, and business models that offer sustainable growth even in a low growth economic environment.
Outside the U.S., we continue to be underweighted in Europe, favoring the U.K. and non- euro countries that are
experiencing relatively stronger growth and are less impacted by the financial crisis on the continent. We remain cautious about Japan, while favoring China and faster growing economies within Asia. Latin America also remains an emphasis within
international Funds.
Although stock prices may experience another roller coaster year in 2012, our research
staff remains committed to identifying investment opportunities that will serve our shareholders well over the long term.
With best wishes,
Roger J. Sit
Chairman, President, CEO and Global CIO
2
[This
page intentionally left blank.]
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.
The Sit Balanced Fund’s six-month return was -1.63%, while the
S&P 500® Index declined -3.69% and the Barclays Capital Aggregate Bond Index increased +4.98% over the
period. The Lipper Balanced Fund Index fell -3.75%.
The second half of 2011 was a volatile period for equities, as European
sovereign debt issues captured the headlines while policymakers struggled to contain the crisis. Some positive steps were taken over the past few months, but it is clear that U.S. stock prices will be heavily influenced by news flow from the euro
region in 2012. While stock investors have been focused on the risks from the dramatic market volatility, we believe that many positive factors must also be considered. These positives include record corporate profits and cash flow, strong corporate
balance sheets, and attractive valuations. Although companies have been cautious in deploying capital, there has clearly been an uptick in both dividends and share repurchases. While there are risks given the fragility of global economic conditions,
we believe a focus on quality growth companies provides investors with a hedge to mitigate downside risks. As we define it, quality refers to companies with strong balance sheets, predictable earnings growth, consistent cash flow generation, and
management teams that focus on improving returns on capital. In terms of equity performance over the past six months, the Fund modestly trailed the S&P 500 Index, as weakness among the Fund’s investments in energy minerals and technology
service sectors was largely offset by outperformance in the finance and retail trade sectors.
We estimate that the fixed
income portion of the Fund modestly underperformed the Barclays Aggregate Bond Index during the second half of the year, largely due to the Fund’s shorter duration relative to the Index. Despite very low yields, investors’ risk aversion
led to a decline in U.S. Treasury yields during 2011, especially for longer-maturity bonds. Looking forward, we expect short-term rates to remain low in 2012, as slow growth and uncertainties regarding Europe’s fiscal problems will encourage
the Federal Reserve to remain highly accommodative. While we continue to believe U.S. Treasuries are unattractive, we think there are significant opportunities in high-quality corporate bonds and several segments within the mortgage securities
market.
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000
investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the S&P 500® Index and the Barclays Capital
Aggregate Bond Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
1 S&P
500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to
invest directly in an index.
2 Barclays Capital Aggregate Bond Index
is an unmanaged market value-weighted index which measures the performance of investment grade debt securities with maturities of at least one year.
This core position in high-quality
mortgages provides a high level of stability in a variety of interest rate environments.
The stock/fixed income allocation is
currently 61.5% equities, 33.2% fixed income, and 5.5% cash and equivalents. We will continue to emphasize high-quality securities in each asset class within the Fund, and we appreciate shareholders’ continued interest.
Roger J. Sit
Bryce A. Doty
John M. Bernstein
Portfolio Managers
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| 4 |
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SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
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|
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| as of December 31, 2011 |
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|
|
|
| |
|
Sit
Balanced
Fund |
|
S&P 500®
Index 1 |
|
Barclays
Capital
Aggregate
Bond
Index 2 |
| Six Month |
|
|
|
-1.63 |
% |
|
|
|
-3.69 |
% |
|
|
|
4.98 |
% |
| One Year |
|
|
|
2.04 |
|
|
|
|
2.11 |
|
|
|
|
7.84 |
|
| Five Year |
|
|
|
2.33 |
|
|
|
|
-0.25 |
|
|
|
|
6.50 |
|
| Ten Year |
|
|
|
3.27 |
|
|
|
|
2.92 |
|
|
|
|
5.78 |
|
| Since Inception
(12/31/93) |
|
|
|
6.16 |
|
|
|
|
7.69 |
|
|
|
|
6.27 |
|
Performance figures are historical and do not guarantee future
results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most
recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest
directly in an index.
2
Barclays Capital Aggregate Bond Index is an unmanaged market value-weighted index which measures the performance of investment grade debt securities with maturities of at least one year.
PORTFOLIO SUMMARY
|
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$16.02 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$16.47 |
|
Per Share |
|
|
| Total Net Assets: |
|
$10.7 |
|
Million |
|
|
TOP HOLDINGS
Stocks:
| |
3. |
International Business Machines Corp. |
| |
4. |
Occidental Petroleum Corp. |
Bonds:
| |
1. |
U.S. Treasury Strips, 3.09%, 8/15/20 |
| |
2. |
Government National Mortgage Association, 2005-74 HA, 7.50% 9/16/35 |
3. Freddie Mac REMIC, 7.50%, 6/15/30
4. Proctor & Gamble ESOP, 9.36%,
1/1/21
| |
5. |
Continental Airlines 2009-1 Pass Thru Certs, 9.00%, 7/8/16 |
Based on total net assets as of
December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Balanced Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
| Common Stocks - 61.5% |
|
| Communications - 1.8% |
|
| 2,000 |
|
Rogers Communications, Inc. |
|
|
77,020 |
|
| 2,850 |
|
Verizon Communications, Inc. |
|
|
114,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
191,362 |
|
|
|
|
|
|
|
|
| Consumer Durables - 0.5% |
|
| 900 |
|
Tupperware Brands Corp. |
|
|
50,373 |
|
|
|
|
|
|
|
|
| Consumer Non-Durables - 6.3% |
|
| 700 |
|
Coach, Inc. |
|
|
42,728 |
|
| 2,100 |
|
Coca-Cola Co. |
|
|
146,937 |
|
| 1,325 |
|
General Mills, Inc. |
|
|
53,543 |
|
| 350 |
|
NIKE, Inc. |
|
|
33,729 |
|
| 2,000 |
|
PepsiCo, Inc. |
|
|
132,700 |
|
| 1,800 |
|
Philip Morris International, Inc. |
|
|
141,264 |
|
| 1,800 |
|
Procter & Gamble Co. |
|
|
120,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
670,979 |
|
|
|
|
|
|
|
|
| Consumer Services - 2.0% |
|
| 1,475 |
|
McDonald’s Corp. |
|
|
147,987 |
|
| 650 |
|
Visa, Inc. |
|
|
65,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
213,981 |
|
|
|
|
|
|
|
|
| Electronic Technology - 9.5% |
|
| 550 |
|
Apple, Inc. * |
|
|
222,750 |
|
| 4,900 |
|
Applied Materials, Inc. |
|
|
52,479 |
|
| 4,700 |
|
Atmel Corp. * |
|
|
38,070 |
|
| 1,450 |
|
Broadcom Corp. * |
|
|
42,572 |
|
| 2,750 |
|
Ciena Corp. * |
|
|
33,275 |
|
| 1,200 |
|
EMC Corp. * |
|
|
25,848 |
|
| 400 |
|
F5 Networks, Inc. * |
|
|
42,448 |
|
| 5,000 |
|
Intel Corp. |
|
|
121,250 |
|
| 1,185 |
|
International Business Machines Corp. |
|
|
217,898 |
|
| 3,400 |
|
Qualcomm, Inc. |
|
|
185,980 |
|
| 925 |
|
VeriFone Systems, Inc. * |
|
|
32,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,015,426 |
|
|
|
|
|
|
|
|
| Energy Minerals - 5.7% |
|
| 800 |
|
Apache Corp. |
|
|
72,464 |
|
| 2,200 |
|
Chevron Corp. |
|
|
234,080 |
|
| 1,550 |
|
Marathon Petroleum Corp. |
|
|
51,600 |
|
| 2,025 |
|
Occidental Petroleum Corp. |
|
|
189,742 |
|
| 1,325 |
|
Southwestern Energy Co. * |
|
|
42,320 |
|
| 325 |
|
Walter Energy, Inc. |
|
|
19,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
609,888 |
|
|
|
|
|
|
|
|
| Finance - 5.5% |
|
| 850 |
|
ACE, Ltd. |
|
|
59,602 |
|
| 125 |
|
CME Group, Inc. |
|
|
30,459 |
|
| 725 |
|
Franklin Resources, Inc. |
|
|
69,644 |
|
| 455 |
|
Goldman Sachs Group, Inc. |
|
|
41,146 |
|
| 2,800 |
|
JPMorgan Chase & Co. |
|
|
93,100 |
|
| 500 |
|
M&T Bank Corp. |
|
|
38,170 |
|
| 2,500 |
|
Marsh & McLennan Cos., Inc. |
|
|
79,050 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 500 |
|
PartnerRe, Ltd. |
|
|
32,105 |
|
| 800 |
|
Prudential Financial, Inc. |
|
|
40,096 |
|
| 3,700 |
|
Wells Fargo & Co. |
|
|
101,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
585,344 |
|
|
|
|
|
|
|
|
| Health Services - 0.9% |
|
| 600 |
|
Express Scripts, Inc. * |
|
|
26,814 |
|
| 600 |
|
McKesson Corp. |
|
|
46,746 |
|
| 500 |
|
Medco Health Solutions, Inc. * |
|
|
27,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
101,510 |
|
|
|
|
|
|
|
|
| Health Technology - 5.4% |
|
| 850 |
|
Allergan, Inc. |
|
|
74,579 |
|
| 1,375 |
|
Celgene Corp. * |
|
|
92,950 |
|
| 1,100 |
|
Gilead Sciences, Inc. * |
|
|
45,023 |
|
| 200 |
|
Intuitive Surgical, Inc. * |
|
|
92,602 |
|
| 700 |
|
Johnson & Johnson |
|
|
45,906 |
|
| 1,800 |
|
Pfizer, Inc. |
|
|
38,952 |
|
| 2,000 |
|
St. Jude Medical, Inc. |
|
|
68,600 |
|
| 600 |
|
Stryker Corp. |
|
|
29,826 |
|
| 900 |
|
Thermo Fisher Scientific, Inc. * |
|
|
40,473 |
|
| 750 |
|
Varian Medical Systems, Inc. * |
|
|
50,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
579,258 |
|
|
|
|
|
|
|
|
| Industrial Services - 1.1% |
|
| 1,200 |
|
Schlumberger, Ltd. |
|
|
81,972 |
|
| 1,200 |
|
Seadrill, Ltd. |
|
|
39,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
121,788 |
|
|
|
|
|
|
|
|
| Non-Energy Minerals - 0.6% |
|
| 650 |
|
Allegheny Technologies, Inc. |
|
|
31,070 |
|
| 1,000 |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
36,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
67,860 |
|
|
|
|
|
|
|
|
| Process Industries - 1.8% |
|
| 1,825 |
|
Ecolab, Inc. |
|
|
105,503 |
|
| 700 |
|
EI du Pont de Nemours & Co. |
|
|
32,046 |
|
| 475 |
|
Praxair, Inc. |
|
|
50,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
188,326 |
|
|
|
|
|
|
|
|
| Producer Manufacturing - 5.9% |
|
| 875 |
|
3M Co. |
|
|
71,514 |
|
| 1,675 |
|
Danaher Corp. |
|
|
78,792 |
|
| 900 |
|
Deere & Co. |
|
|
69,615 |
|
| 1,825 |
|
Emerson Electric Co. |
|
|
85,027 |
|
| 350 |
|
Flowserve Corp. |
|
|
34,762 |
|
| 3,400 |
|
General Electric Co. |
|
|
60,894 |
|
| 700 |
|
Honeywell International, Inc. |
|
|
38,045 |
|
| 1,800 |
|
Johnson Controls, Inc. |
|
|
56,268 |
|
| 325 |
|
Precision Castparts Corp. |
|
|
53,557 |
|
| 1,100 |
|
United Technologies Corp. |
|
|
80,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
628,873 |
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
|
|
|
| 6 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Balanced Fund (Continued) |
|
|
|
|
|
|
|
Quantity/
Principal
Amount ($) |
|
Name of Issuer |
|
Fair Value ($) |
|
|
| Retail Trade - 5.1% |
|
| 325 |
|
Amazon.com, Inc. * |
|
|
56,258 |
|
| 650 |
|
Costco Wholesale Corp. |
|
|
54,158 |
|
| 1,900 |
|
Dick’s Sporting Goods, Inc. |
|
|
70,072 |
|
| 1,500 |
|
Home Depot, Inc. |
|
|
63,060 |
|
| 1,000 |
|
Kohl’s Corp. |
|
|
49,350 |
|
| 2,100 |
|
Target Corp. |
|
|
107,562 |
|
| 1,425 |
|
TJX Cos., Inc. |
|
|
91,984 |
|
| 950 |
|
Wal-Mart Stores, Inc. |
|
|
56,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
549,216 |
|
|
|
|
|
|
|
|
| Technology Services - 6.7% |
|
| 1,600 |
|
Accenture, PLC |
|
|
85,168 |
|
| 1,100 |
|
Cognizant Technology Solutions Corp.
* |
|
|
70,741 |
|
| 255 |
|
Google, Inc. * |
|
|
164,704 |
|
| 875 |
|
Informatica Corp. * |
|
|
32,314 |
|
| 5,800 |
|
Oracle Corp. |
|
|
148,770 |
|
| 160 |
|
priceline.com, Inc. * |
|
|
74,834 |
|
| 450 |
|
Salesforce.com, Inc. * |
|
|
45,657 |
|
| 825 |
|
Teradata Corp. * |
|
|
40,021 |
|
| 700 |
|
VMware, Inc. * |
|
|
58,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
720,442 |
|
|
|
|
|
|
|
|
| Transportation - 1.9% |
|
| 1,100 |
|
Expeditors International of Washington, Inc. |
|
|
45,056 |
|
| 1,100 |
|
Union Pacific Corp. |
|
|
116,534 |
|
| 625 |
|
United Parcel Service, Inc. |
|
|
45,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
207,334 |
|
|
|
|
|
|
|
|
| Utilities - 0.8% |
|
| 1,350 |
|
Calpine Corp. * |
|
|
22,045 |
|
| 1,800 |
|
Wisconsin Energy Corp. |
|
|
62,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
84,973 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $5,302,417) |
|
|
6,586,933 |
|
|
|
|
|
|
|
|
| Bonds - 32.6% |
|
| Asset-Backed Securities - 3.6% |
|
| 33,733 |
|
Bayview Financial Acquisition Trust, |
|
|
|
|
|
|
2006-D 1A2, 5.66%, 12/28/36 |
|
|
32,908 |
|
| 97,320 |
|
Centex Home Equity, |
|
|
|
|
|
|
2004-D AF4, 4.68%, 6/25/32 |
|
|
92,220 |
|
| 37,173 |
|
Chase Funding Mtge. Loan Asset-Backed Certs., |
|
|
|
|
|
|
2003-6 1A4, 4.50%, 11/25/34 |
|
|
37,079 |
|
| 81,009 |
|
Citifinancial Mortgage Securities, Inc., |
|
|
|
|
|
|
2003-1 AF5, 4.78%, 1/25/33 |
|
|
79,792 |
|
| 50,000 |
|
First Franklin Mtge. Loan Asset-Backed Certs., |
|
|
|
|
|
|
2005-FF2 M2, 0.73%, 3/25/35 1 |
|
|
46,540 |
|
| 14,600 |
|
Green Tree Financial Corp., |
|
|
|
|
|
|
1997-6 A10, 6.87%, 1/15/29 |
|
|
15,313 |
|
| 34,282 |
|
New Century Home Equity Loan Trust, |
|
|
|
|
|
|
2005-A A4W, 5.04%, 8/25/35 |
|
|
30,441 |
|
|
|
|
|
|
|
|
|
Principal
Amount ($) |
|
Name of Issuer |
|
Fair Value ($) |
|
|
|
Origen Manufactured Housing: |
|
|
|
|
| 7,081 |
|
2002-A A3, 6.17%, 5/15/32 1 |
|
|
7,276 |
|
| 2,984 |
|
2001-A A5, 7.08%, 3/15/32 1 |
|
|
2,995 |
|
| 19,947 |
|
Residential Asset Securities Corp., |
|
|
|
|
|
|
2004 KS2 AI4, 4.18%, 12/25/31 1 |
|
|
19,517 |
|
| 22,800 |
|
Residential Funding Mortgage Securities II, Inc., |
|
|
|
|
|
|
2003-HI2 A6, 4.76%, 7/25/28 |
|
|
22,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
386,328 |
|
|
|
|
|
|
|
|
| Collateralized Mortgage Obligations - 4.5% |
|
| 46,022 |
|
Fannie Mae, |
|
|
|
|
|
|
2010-108 AP, 7.00%, 9/25/40 |
|
|
52,154 |
|
| 24,921 |
|
Fannie Mae Grantor Trust, |
|
|
|
|
|
|
2004-T3, 1A3, 7.00%, 2/25/44 |
|
|
28,715 |
|
|
|
Freddie Mac REMIC: |
|
|
|
|
| 49,573 |
|
7.00%, 11/15/29 |
|
|
56,110 |
|
| 91,030 |
|
7.50%, 6/15/30 |
|
|
105,886 |
|
| 105,279 |
|
Government National Mortgage Association, |
|
|
|
|
|
|
2005-74 HA, 7.50%, 9/16/35 |
|
|
119,846 |
|
| 10,481 |
|
Master Asset Securitization Trust, |
|
|
|
|
|
|
2003-4 CA1, 8.00%, 5/25/18 |
|
|
11,071 |
|
| 32,641 |
|
Specialty Underwriting & Residential Finance, |
|
|
|
|
|
|
2004-AA1 2A2, 5.50%, 10/25/34 |
|
|
32,709 |
|
| 62,313 |
|
Vendee Mortgage Trust, |
|
|
|
|
|
|
2008-1 B, 8.03%, 3/15/25 1 |
|
|
78,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
484,986 |
|
|
|
|
|
|
|
|
| Corporate Bonds - 7.3% |
|
| 50,000 |
|
Chevron Corp., |
|
|
|
|
|
|
4.95%, 3/3/19 |
|
|
59,146 |
|
| 25,000 |
|
Coca-Cola Refreshments USA, Inc., |
|
|
|
|
|
|
8.00%, 9/15/22 |
|
|
36,070 |
|
| 25,000 |
|
Comerica Bank (Subordinated), |
|
|
|
|
|
|
8.38%, 7/15/24 |
|
|
27,340 |
|
| 91,206 |
|
Continental Airlines 2009-1 Pass Thru Certs., |
|
|
|
|
|
|
9.00%, 7/8/16 |
|
|
100,327 |
|
| 25,000 |
|
First Maryland Capital I (Subordinated), |
|
|
|
|
|
|
1.40%, 1/15/27 1 |
|
|
18,595 |
|
| 100,000 |
|
Genworth Financial, Inc., |
|
|
|
|
|
|
7.70%, 6/15/20 |
|
|
95,050 |
|
| 50,000 |
|
JM Smucker Co., |
|
|
|
|
|
|
3.50%, 10/15/21 |
|
|
51,258 |
|
| 50,000 |
|
JPMorgan Chase Capital XXV (Subordinated), |
|
|
|
|
|
|
6.80%, 10/1/37 |
|
|
50,187 |
|
| 50,509 |
|
Northwest Airlines 1999-2 A Pass Thru Tr, |
|
|
|
|
|
|
7.58%, 3/1/19 |
|
|
52,655 |
|
| 25,000 |
|
PartnerRe Finance B LLC, |
|
|
|
|
|
|
5.50%, 6/1/20 |
|
|
25,211 |
|
| 50,000 |
|
PepsiCo, Inc., |
|
|
|
|
|
|
3.13%, 11/1/20 |
|
|
52,065 |
|
| 78,296 |
|
Procter & Gamble ESOP, |
|
|
|
|
|
|
9.36%, 1/1/21 |
|
|
105,374 |
|
| 25,000 |
|
Susa Partnership LP, |
|
|
|
|
|
|
8.20%, 6/1/17 |
|
|
30,009 |
|
See accompanying notes to
financial statements.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Balanced Fund (Continued) |
|
|
|
|
|
|
|
|
Principal
Amount ($) |
|
Name of Issuer |
|
Fair Value ($) |
|
| 50,000 |
|
Sysco Corp., |
|
|
|
|
|
|
6.63%, 3/17/39 |
|
|
72,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
775,579 |
|
|
|
|
|
|
|
|
| Federal Home Loan Mortgage Corporation - 2.3% |
|
| 49,311 |
|
7.00%, 7/1/32 |
|
|
56,093 |
|
| 31,171 |
|
7.00%, 5/1/34 |
|
|
35,744 |
|
| 48,212 |
|
7.00%, 11/1/37 |
|
|
54,843 |
|
| 21,805 |
|
7.00%, 1/1/39 |
|
|
24,845 |
|
| 33,947 |
|
7.50%, 11/1/36 |
|
|
40,552 |
|
| 16,273 |
|
8.00%, 9/1/15 |
|
|
17,865 |
|
| 16,726 |
|
8.38%, 5/17/20 |
|
|
19,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
249,081 |
|
|
|
|
|
|
|
|
| Federal National Mortgage Association - 5.8% |
|
| 63,528 |
|
6.63%, 11/1/30 |
|
|
73,379 |
|
| 50,155 |
|
6.63%, 1/1/31 |
|
|
57,931 |
|
| 32,684 |
|
7.00%, 12/1/32 |
|
|
38,491 |
|
| 54,313 |
|
7.00%, 3/1/33 |
|
|
61,551 |
|
| 43,321 |
|
7.00%, 12/1/36 |
|
|
50,137 |
|
| 33,500 |
|
7.00%, 11/1/38 |
|
|
38,256 |
|
| 56,136 |
|
7.23%, 12/1/30 |
|
|
65,416 |
|
| 9,060 |
|
7.50%, 6/1/32 |
|
|
10,837 |
|
| 30,737 |
|
7.50%, 4/1/33 |
|
|
35,477 |
|
| 31,598 |
|
7.50%, 11/1/33 |
|
|
37,722 |
|
| 45,853 |
|
7.50%, 1/1/34 |
|
|
54,749 |
|
| 15,217 |
|
7.50%, 4/1/38 |
|
|
18,179 |
|
| 42,072 |
|
8.00%, 2/1/31 |
|
|
50,875 |
|
| 14,096 |
|
8.45%, 7/15/26 |
|
|
16,802 |
|
| 7,545 |
|
9.50%, 5/1/27 |
|
|
9,085 |
|
| 534 |
|
9.75%, 1/15/13 |
|
|
552 |
|
| 274 |
|
10.25%, 6/15/13 |
|
|
282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
619,721 |
|
|
|
|
|
|
|
|
| Government National Mortgage Association - 2.8% |
|
| 50,899 |
|
6.63%, 4/20/31 |
|
|
58,624 |
|
| 29,966 |
|
7.00%, 12/15/24 |
|
|
34,886 |
|
| 51,436 |
|
7.23%, 12/20/30 |
|
|
59,762 |
|
| 56,931 |
|
8.00%, 7/15/24 |
|
|
66,929 |
|
| 74,293 |
|
8.38%, 3/15/31 |
|
|
78,180 |
|
| 1,107 |
|
9.50%, 9/20/18 |
|
|
1,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
299,685 |
|
|
|
|
|
|
|
|
| Taxable Municipal Securities - 1.7% |
|
| 100,000 |
|
Academica Charter Schools, |
|
|
|
|
|
|
8.00%, 8/15/24 4 |
|
|
79,275 |
|
| 50,000 |
|
Coalinga-Huron Joint Unified Sch. Dist. G.O., |
|
|
|
|
|
|
5.43%, 8/1/21 |
|
|
51,286 |
|
| 50,000 |
|
Texas St. Pub. Fin. Auth. Charter Sch. Fin. Rev., |
|
|
|
|
|
|
8.75%, 8/15/27 |
|
|
52,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
182,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal
Amount ($)/ Quantity |
|
Name of Issuer |
|
Fair Value
($) |
|
| U.S. Government / Federal Agency Securities - 3.6% |
|
|
|
U.S. Treasury Strips: |
|
|
|
|
| 275,000 |
|
3.09%, 8/15/20 6 |
|
|
236,773 |
|
| 100,000 |
|
4.21%, 2/15/36 6 |
|
|
49,246 |
|
| 50,000 |
|
United States Treasury Bond, |
|
|
|
|
|
|
3.13%, 11/15/41 |
|
|
52,383 |
|
| 50,000 |
|
United States Treasury Note, |
|
|
|
|
|
|
2.00%, 11/15/21 |
|
|
50,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
388,972 |
|
|
|
|
|
|
|
|
| Foreign Government Bonds - 1.0% |
|
| 50,000 |
|
Hydro-Quebec, |
|
|
|
|
|
|
8.40%, 3/28/25 |
|
|
75,611 |
|
| 25,000 |
|
Province of Ontario Canada, |
|
|
|
|
|
|
1.60%, 9/21/16 |
|
|
24,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
100,562 |
|
|
|
|
|
|
|
|
| Total Bonds (cost: $3,331,968) |
|
|
3,487,835 |
|
|
|
|
|
|
|
|
| Closed-End Mutual Funds - 0.6% |
|
| 1,703 |
|
American Strategic Income Portfolio, Inc. |
|
|
18,273 |
|
| 4,300 |
|
American Strategic Income Portfolio, Inc. II |
|
|
34,658 |
|
| 600 |
|
Blackrock Build America Bond Trust |
|
|
12,810 |
|
|
|
|
|
|
|
|
| Total Closed-End Mutual Funds
(cost: $69,411) |
|
|
65,741 |
|
|
|
|
|
|
|
|
| Total
Investments in Securities - 94.7% (cost: $8,703,796) |
|
|
10,140,509 |
|
| Other Assets and Liabilities, net - 5.3% |
|
|
572,605 |
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
10,713,114 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
| 1 |
Variable rate security. Rate disclosed is as of December 31, 2011. |
| 4 |
144A Restricted Security. The total value of such security as of December 31, 2011 was $79,275 and represented 0.7% of net assets. This
security has been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. |
| 6 |
Zero coupon security. Rate disclosed is the effective yield on purchase date. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
PLC —
Public Limited Company
See accompanying notes to
financial statements.
|
|
|
| 8 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Balanced Fund (Continued)
|
A summary of the inputs used to value the Fund’s net assets as of December 31,
2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Investment in Securities |
|
|
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks ** |
|
|
|
6,586,933 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
6,586,933 |
|
| Asset-Backed Securities |
|
|
|
— |
|
|
|
|
386,328 |
|
|
|
|
— |
|
|
|
|
386,328 |
|
| Collateralized Mortgage Obligations |
|
|
|
— |
|
|
|
|
484,986 |
|
|
|
|
— |
|
|
|
|
484,986 |
|
| Corporate Bonds |
|
|
|
— |
|
|
|
|
775,579 |
|
|
|
|
— |
|
|
|
|
775,579 |
|
| Federal Home Loan Mortgage Corporation |
|
|
|
— |
|
|
|
|
249,081 |
|
|
|
|
— |
|
|
|
|
249,081 |
|
| Federal National Mortgage Association |
|
|
|
— |
|
|
|
|
619,721 |
|
|
|
|
— |
|
|
|
|
619,721 |
|
| Government National Mortgage Association |
|
|
|
— |
|
|
|
|
299,685 |
|
|
|
|
— |
|
|
|
|
299,685 |
|
| Taxable Municipal Securities |
|
|
|
— |
|
|
|
|
182,921 |
|
|
|
|
— |
|
|
|
|
182,921 |
|
| U.S. Government / Federal Agency Securities |
|
|
|
— |
|
|
|
|
388,972 |
|
|
|
|
— |
|
|
|
|
388,972 |
|
| Foreign Government Bonds |
|
|
|
— |
|
|
|
|
100,562 |
|
|
|
|
— |
|
|
|
|
100,562 |
|
| Closed-End Mutual Funds |
|
|
|
65,741 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
65,741 |
|
| Total: |
|
|
|
6,652,674 |
|
|
|
|
3,487,835 |
|
|
|
|
— |
|
|
|
|
10,140,509 |
|
| ** |
For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
For the reporting period, there were no transfers between levels 1, 2 and 3.
See accompanying notes to
financial statements.
|
| |
| |
| 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.
The Sit Dividend Growth Fund Class I posted a -3.30% return for the last six months of
2011, compared to the -3.69% return for the S&P 500® Index.
Stock prices fell over the past six months as investors
became highly risk averse while the European sovereign debt crisis dominated the headlines. Although a resolution to the situation in Europe is far from clear, our base case for 2012 is that it may look very much like 2011, with sluggish economic
growth and high market volatility among the key characteristics. Dividend paying companies, particularly in “low risk” sectors such as utilities and consumer non-durables, outperformed the market during much of 2011, as investors sought
both safety to mitigate risks and income amid low interest rates on high-quality bonds. While the Fund maintains positions in these sectors, we believe that valuations limit upside potential and that there are better opportunities elsewhere in 2012.
We continue to think a diversified approach within dividend investing is prudent to guard against market volatility and simply due to the breadth of opportunities we see in many sectors. To this point, although finance remains the heaviest weighting
within the Fund, six sectors currently have a weighting of 9% or more.
Given the unprecedented strength in corporate balance
sheets and the fact that dividend payout ratios (i.e., the portion of corporate earnings paid to shareholders as dividends) are at an all-time low, our goal is to continue to seek out companies with stable earnings growth and the financial strength
to increase their payouts over time. In this regard, it has been encouraging to see companies respond to investors’ desire for higher dividends. For example, over the past twelve months, 80 companies within the Fund (out of 90 current holdings)
have increased the dividend, with a median increase of +12%.
The Fund outperformed the S&P 500 Index during the second
half of 2011, largely due to strong stock selection within the finance sector. While banks and brokerage firms performed quite poorly over the period, the Fund’s emphasis on insurance companies (e.g., Validus Holdings, Ace Limited,
Marsh & McLennan) and investment managers (e.g., Kayne Anderson) aided performance over the period. The positive results in this sector were partially offset by negative stock selection in the health technology and energy minerals sectors.
St. Jude Medical and Baxter International adversely affected the health technology sector performance. Within energy minerals,
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over
the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the S&P 500® Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common
stocks of large-cap companies. It is not possible to invest directly in an index.
the absence of Exxon Mobil hurt relative returns, as the stock outperformed the sector and is heavily weighted within the S&P 500
Index.
We continue to believe that dividend-paying growth stocks are attractive and will reward investors over the long term,
as companies begin to increase payout ratios from historically low levels.
Roger J. Sit
Kent L. Johnson
Michael J.
Stellmacher
Portfolio Managers
|
|
|
| 10 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
|
|
|
|
|
|
|
|
|
|
|
|
|
| as of December 31, 2011 |
|
|
|
|
|
|
|
|
|
| |
|
Sit Dividend
Growth Fund |
|
|
S&P 500®
Index 1 |
|
| |
|
Class I |
|
|
Class S |
|
|
| Six Month |
|
|
-3.30% |
|
|
|
-3.41% |
|
|
|
-3.69% |
|
| One Year |
|
|
3.29 |
|
|
|
2.98 |
|
|
|
2.11 |
|
| Five Year |
|
|
3.72 |
|
|
|
3.45 |
|
|
|
-0.25 |
|
| Since Inception - Class I (12/31/03) |
|
|
7.03 |
|
|
|
n/a |
|
|
|
3.63 |
|
| Since Inception - Class S (3/31/06) |
|
|
n/a |
|
|
|
4.91 |
|
|
|
1.63 |
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may
have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as
reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the
performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns
for periods greater than one year are compounded average annual rates of return.
1 S&P 500® Index is an unmanaged capitalization-weighted index that measures the performance of
500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.
PORTFOLIO SUMMARY
|
|
|
|
|
|
|
|
|
|
|
| Class I: |
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$13.19 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$13.91 |
|
Per Share |
|
|
| Total Net Assets: |
|
$390.1 |
|
Million |
|
|
| Class S: |
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$13.16 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$13.87 |
|
Per Share |
|
|
| Total Net Assets: |
|
$74.8 |
|
Million |
|
|
|
|
|
|
| Weighted Average Market Cap: |
|
$70.0 |
|
Billion |
|
|
TOP 10 HOLDINGS
1. Chevron Corp.
2. International Business Machines Corp.
3. Qualcomm, Inc.
4. Verizon Communications, Inc.
5. Procter & Gamble Co.
6. Occidental Petroleum Corp.
7. PepsiCo, Inc.
8. Johnson & Johnson
9. Pfizer, Inc.
10. JPMorgan Chase & Co.
Based on total net assets as of
December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Dividend Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Common
Stocks - 94.8% |
|
|
|
|
| Communications - 3.5% |
|
|
|
|
| 150,200 |
|
Rogers Communications, Inc. |
|
|
5,784,202 |
|
| 264,900 |
|
Verizon Communications, Inc. |
|
|
10,627,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
16,411,990 |
|
| Consumer Durables - 3.3% |
|
|
|
|
| 124,200 |
|
Snap-On, Inc. |
|
|
6,287,004 |
|
| 74,600 |
|
Stanley Black & Decker, Inc. |
|
|
5,042,960 |
|
| 72,100 |
|
Tupperware Brands Corp. |
|
|
4,035,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
15,365,401 |
|
|
|
|
|
|
|
|
| Consumer Non-Durables - 9.9% |
|
|
|
|
| 38,700 |
|
Colgate-Palmolive Co. |
|
|
3,575,493 |
|
| 50,700 |
|
Diageo, PLC, ADR |
|
|
4,432,194 |
|
| 162,000 |
|
General Mills, Inc. |
|
|
6,546,420 |
|
| 39,800 |
|
NIKE, Inc. |
|
|
3,835,526 |
|
| 150,900 |
|
PepsiCo, Inc. |
|
|
10,012,215 |
|
| 89,000 |
|
Philip Morris International, Inc. |
|
|
6,984,720 |
|
| 158,800 |
|
Procter & Gamble Co. |
|
|
10,593,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
45,980,116 |
|
|
|
|
|
|
|
|
| Consumer Services - 2.2% |
|
|
|
|
| 66,800 |
|
McDonald’s Corp. |
|
|
6,702,044 |
|
| 181,600 |
|
Pearson, PLC, ADR |
|
|
3,426,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,128,836 |
|
|
|
|
|
|
|
|
| Electronic Technology - 9.0% |
|
|
|
|
| 254,800 |
|
Applied Materials, Inc. |
|
|
2,728,908 |
|
| 74,800 |
|
Broadcom Corp. * |
|
|
2,196,128 |
|
| 275,600 |
|
Intel Corp. |
|
|
6,683,300 |
|
| 76,700 |
|
International Business Machines Corp. |
|
|
14,103,596 |
|
| 110,800 |
|
Linear Technology Corp. |
|
|
3,327,324 |
|
| 196,100 |
|
Qualcomm, Inc. |
|
|
10,726,670 |
|
| 68,800 |
|
TE Connectivity, Ltd. |
|
|
2,119,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
41,885,654 |
|
|
|
|
|
|
|
|
| Energy Minerals - 9.8% |
|
|
|
|
| 38,700 |
|
Apache Corp. |
|
|
3,505,446 |
|
| 153,800 |
|
Chevron Corp. |
|
|
16,364,320 |
|
| 57,150 |
|
EQT Corp. |
|
|
3,131,248 |
|
| 105,550 |
|
Marathon Petroleum Corp. |
|
|
3,513,760 |
|
| 53,600 |
|
Murphy Oil Corp. |
|
|
2,987,664 |
|
| 109,600 |
|
Occidental Petroleum Corp. |
|
|
10,269,520 |
|
| 78,200 |
|
Royal Dutch Shell, PLC, ADR |
|
|
5,943,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
45,715,940 |
|
|
|
|
|
|
|
|
| Finance - 14.0% |
|
|
|
|
| 80,100 |
|
ACE, Ltd. |
|
|
5,616,612 |
|
| 106,300 |
|
Ameriprise Financial, Inc. |
|
|
5,276,732 |
|
| 46,700 |
|
Franklin Resources, Inc. |
|
|
4,486,002 |
|
| 230,000 |
|
JPMorgan Chase & Co. |
|
|
7,647,500 |
|
| 45,900 |
|
M&T Bank Corp. |
|
|
3,504,006 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 199,100 |
|
Marsh & McLennan
Cos., Inc. |
|
|
6,295,542 |
|
| 227,100 |
|
Northwest Bancshares, Inc. |
|
|
2,825,124 |
|
| 97,000 |
|
PartnerRe, Ltd. |
|
|
6,228,370 |
|
| 208,700 |
|
PennantPark Investment Corp. |
|
|
2,105,783 |
|
| 50,900 |
|
Prudential Financial, Inc. |
|
|
2,551,108 |
|
| 72,300 |
|
Travelers Cos., Inc. |
|
|
4,277,991 |
|
| 194,900 |
|
US Bancorp |
|
|
5,272,045 |
|
| 173,800 |
|
Validus Holdings, Ltd. |
|
|
5,474,700 |
|
| 129,800 |
|
Wells Fargo & Co. |
|
|
3,577,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
65,138,803 |
|
|
|
|
|
|
|
|
| Health Services - 2.6% |
|
|
|
|
| 100,300 |
|
Cardinal Health, Inc. |
|
|
4,073,183 |
|
| 59,900 |
|
McKesson Corp. |
|
|
4,666,809 |
|
| 64,500 |
|
UnitedHealth Group, Inc. |
|
|
3,268,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,008,852 |
|
|
|
|
|
|
|
|
| Health Technology - 9.9% |
|
|
|
|
| 42,500 |
|
Abbott Laboratories |
|
|
2,389,775 |
|
| 104,900 |
|
Baxter International, Inc. |
|
|
5,190,452 |
|
| 34,200 |
|
Becton Dickinson & Co. |
|
|
2,555,424 |
|
| 105,100 |
|
Covidien, PLC |
|
|
4,730,551 |
|
| 126,800 |
|
Johnson & Johnson |
|
|
8,315,544 |
|
| 175,400 |
|
Merck & Co., Inc. |
|
|
6,612,580 |
|
| 377,700 |
|
Pfizer, Inc. |
|
|
8,173,428 |
|
| 111,000 |
|
St. Jude Medical, Inc. |
|
|
3,807,300 |
|
| 80,800 |
|
Stryker Corp. |
|
|
4,016,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
45,791,622 |
|
|
|
|
|
|
|
|
| Industrial Services - 2.5% |
|
|
|
|
| 124,000 |
|
Halliburton Co. |
|
|
4,279,240 |
|
| 60,700 |
|
National Oilwell Varco, Inc. |
|
|
4,126,993 |
|
| 91,300 |
|
Seadrill, Ltd. |
|
|
3,029,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
11,435,567 |
|
|
|
|
|
|
|
|
| Non-Energy Minerals - 1.1% |
|
|
|
|
| 37,100 |
|
BHP Billiton, Ltd., ADR |
|
|
2,620,373 |
|
| 61,600 |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
2,266,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,886,637 |
|
|
|
|
|
|
|
|
| Process Industries - 2.0% |
|
|
|
|
| 146,000 |
|
EI du Pont de Nemours & Co. |
|
|
6,683,880 |
|
| 139,700 |
|
Olin Corp. |
|
|
2,745,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,428,985 |
|
|
|
|
|
|
|
|
| Producer Manufacturing - 9.0% |
|
|
|
|
| 65,900 |
|
3M Co. |
|
|
5,386,007 |
|
| 105,000 |
|
ABB, Ltd., ADR * |
|
|
1,977,150 |
|
| 92,200 |
|
Autoliv, Inc. |
|
|
4,931,778 |
|
| 95,400 |
|
Cooper Industries, PLC |
|
|
5,165,910 |
|
| 41,300 |
|
Deere & Co. |
|
|
3,194,555 |
|
| 142,400 |
|
Emerson Electric Co. |
|
|
6,634,416 |
|
| 228,700 |
|
General Electric Co. |
|
|
4,096,017 |
|
See accompanying notes to
financial statements.
|
|
|
| 12 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Dividend Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 90,500 |
|
Honeywell International, Inc. |
|
|
4,918,675 |
|
| 77,100 |
|
United Technologies Corp. |
|
|
5,635,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
41,939,747 |
|
|
|
|
|
|
|
|
| Retail Trade - 4.6% |
|
|
|
|
| 127,400 |
|
Cato Corp. |
|
|
3,083,080 |
|
| 82,400 |
|
Home Depot, Inc. |
|
|
3,464,096 |
|
| 107,700 |
|
Target Corp. |
|
|
5,516,394 |
|
| 55,600 |
|
TJX Cos., Inc. |
|
|
3,588,980 |
|
| 94,900 |
|
Wal-Mart Stores, Inc. |
|
|
5,671,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
21,323,774 |
|
|
|
|
|
|
|
|
| Technology Services - 4.9% |
|
|
|
|
| 126,400 |
|
Accenture, PLC |
|
|
6,728,272 |
|
| 65,150 |
|
Automatic Data Processing, Inc. |
|
|
3,518,751 |
|
| 211,700 |
|
Microsoft Corp. |
|
|
5,495,732 |
|
| 181,000 |
|
Oracle Corp. |
|
|
4,642,650 |
|
| 49,500 |
|
Syntel, Inc. |
|
|
2,315,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
22,700,520 |
|
|
|
|
|
|
|
|
| Transportation - 2.7% |
|
|
|
|
| 50,100 |
|
Expeditors International of Washington, Inc. |
|
|
2,052,096 |
|
| 113,300 |
|
Knight Transportation, Inc. |
|
|
1,772,012 |
|
| 47,800 |
|
Union Pacific Corp. |
|
|
5,063,932 |
|
| 51,500 |
|
United Parcel Service, Inc. |
|
|
3,769,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,657,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
Utilities - 3.8% |
|
|
|
|
| 184,500 |
|
Kinder Morgan, Inc. |
|
|
5,935,365 |
|
| 85,000 |
|
NextEra Energy, Inc. |
|
|
5,174,800 |
|
| 96,600 |
|
UGI Corp. |
|
|
2,840,040 |
|
| 110,300 |
|
Wisconsin Energy Corp. |
|
|
3,856,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
17,806,293 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $426,092,223) |
|
|
440,606,062 |
|
|
|
|
|
|
|
|
| Closed-End Mutual Funds - 1.9% |
|
|
|
|
| 195,622 |
|
Kayne Anderson MLP Investment Co. |
|
|
5,941,040 |
|
| 105,200 |
|
Tortoise Energy Capital Corp. |
|
|
2,822,516 |
|
|
|
|
|
|
|
|
| Total Closed-End Mutual Funds
(cost: $8,168,768) |
|
|
8,763,556 |
|
|
|
|
|
|
|
|
| Total Investments in Securities - 96.7%
(cost: $434,260,991) |
|
|
449,369,618 |
|
| Other Assets and Liabilities, net - 3.3% |
|
|
15,468,129 |
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
464,837,747 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
PLC — Public
Limited Company
A summary of the
inputs used to value the Fund’s net assets as of December 31, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Investment in Securities |
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks ** |
|
|
|
440,606,062 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
440,606,062 |
|
| Closed-End Mutual Funds |
|
|
|
8,763,556 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
8,763,556 |
|
| Total: |
|
|
|
449,369,618 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
449,369,618 |
|
| ** |
For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
For the reporting period, there were no transfers between levels 1, 2 and 3.
See accompanying notes to
financial statements.
|
| |
| |
| 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.
The Sit Global Dividend Growth Fund outperformed the Composite Index
(60% S&P 500® Index and 40% MSCI EAFE Index) in the last six months of 2011. The Fund’s Class I
returned -7.70% while the Index yielded a -8.90% return. U.S. equity markets turned in solid performance in the last three months of 2011. International equity markets also ended the year on a positive note, albeit not as strong as the U.S. equity
market. Dividend-yielding strategies were among the market leaders in the latter half of 2011. We expect high-quality, large cap, dividend-paying stocks to perform well in what we expect will continue to be a subpar global economic expansion.
Additionally, equity markets will likely continue to be volatile in 2012 as the European debt crisis remains unresolved and fears of a global recession don’t recede.
Regionally, North America has the largest absolute weight in the Fund and was the second best contributor to the outperformance, due both to stock selection and the overweight position. Within North
America, the large cap defensive-type stocks were the best performers. Euro area was the top contributor to outperformance, thanks primarily to the underweight position. The UK also contributed strongly given the overweight position and good stock
selection. Conversely, non-euro area assets took away from relative performance due to less than stellar stock selection. The overweight position in Asia-ex Japan helped the Fund, but the negative stock selection more than offset this.
On a sector basis, the Fund’s outperformance was largely driven by positive stock selection and the underweight position in the
financial sector. Specifically, the underweight in euro area banks and diversified financials helped meaningfully. While the Fund’s overweight position in the insurance industry negatively impacted performance, the good stock selection more
than offset the effect. While the Fund was essentially market weight in the telecommunications and consumer discretionary sectors, the strong stock selection led the sectors to be among the top three contributing sectors to performance. On the other
hand, the Fund had poor stock selection in the industrials, utilities, and materials sectors, but it was not nearly enough to offset the positive contribution from the financial sector alone.
The Fund continues to be comprised of large cap, globally dominant, high quality, and dividend paying companies. As was seen in the first
six months of 2011, dividend increases have continued in the second half of 2011. Dividend increases remain on the rise and
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000
investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the Composite Index, S&P 500® Index and MSCI
EAFE Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 A composite index
comprised of 60% S&P 500® Index and 40% MSCI EAFE Index.
2 S&P 500® Index is an unmanaged
capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.
3 MSCI EAFE Index (Europe Australasia,
Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada.
nearly all of the companies (over
90%) in the Fund increased their dividends in the year 2011. The average dividend increase for the year was nearly 32%. We focus on companies with dominant market share, high sales and earnings growth, operating margin leverage, free cash flow, and
healthy balance sheets.
The focus is on companies with strong operational and financial characteristics that generate solid
and predictable earnings and dividend growth.
|
|
|
|
|
| Roger J. Sit |
|
Michael J. Stellmacher |
| Kent L. Johnson |
|
Tasha M. Murdoff |
| Raymond E. Sit |
|
|
|
|
| Portfolio Managers |
|
|
|
|
|
|
|
| 14 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| as of December 31, 2011 |
|
|
|
|
|
|
|
| |
|
Sit Global
Dividend
Growth Fund |
|
|
Composite
Index 1 |
|
|
S&P 500®
Index 2 |
|
|
MSCI
EAFE
Index 3 |
|
| |
|
Class I |
|
|
Class S |
|
|
|
|
| Six Month |
|
|
-7.70% |
|
|
|
-7.80% |
|
|
|
-8.90% |
|
|
|
-3.69% |
|
|
|
-16.31% |
|
| One Year |
|
|
-2.58 |
|
|
|
-2.89 |
|
|
|
-3.78 |
|
|
|
2.11 |
|
|
|
-12.14 |
|
| Since Inception
(9/30/08) |
|
|
7.98 |
|
|
|
7.70 |
|
|
|
2.86 |
|
|
|
4.66 |
|
|
|
-0.04 |
|
Performance figures are historical and do not guarantee future results. Investment returns and
principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include
changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If
imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the
Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 A composite index comprised of 60% S&P
500® Index and 40% MSCI EAFE Index.
2 S&P 500® Index is an unmanaged
capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.
3 MSCI EAFE Index (Europe Australasia,
Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada.
PORTFOLIO SUMMARY
|
|
|
|
|
|
|
| Class I: |
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$11.93 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$13.26 |
|
Per Share |
|
|
| Total Net Assets: |
|
$7.5 |
|
Million |
|
|
| Class S: |
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$11.92 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$13.24 |
|
Per Share |
|
|
| Total Net Assets: |
|
$2.0 |
|
Million |
|
|
|
|
|
|
| Weighted Average Market Cap: |
|
$75.0 |
|
Billion |
|
|
TOP 10 HOLDINGS
1. International
Business Machines Corp.
2. Chevron Corp.
3. BHP Liliton, Ltd., ADR
4. Verizon Communications, Inc.
5. Rogers Communications, Inc.
6. Royal Dutch Shell, PLC, ADR
7. Qualcomm, Inc.
8. McDonald’s Corp.
9. GlaxoSmithKline, PLC, ADR
10. SGS SA
Based on total net assets as of December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Global Dividend Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Common
Stocks - 97.2% |
|
|
|
|
| Asia - 6.3% |
|
|
|
|
| Australia - 4.3% |
|
|
|
|
| 3,350 |
|
BHP Billiton, Ltd., ADR |
|
|
236,610 |
|
| 1,500 |
|
Rio Tinto, PLC, ADR |
|
|
73,380 |
|
| 950 |
|
Westpac Banking Corp., ADR |
|
|
97,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
407,270 |
|
|
|
|
|
|
|
|
| China/Hong Kong - 1.0% |
|
|
|
|
| 2,450 |
|
HSBC Holdings, PLC, ADR |
|
|
93,345 |
|
|
|
|
|
|
|
|
| Japan - 1.0% |
|
|
|
|
| 4,200 |
|
Komatsu, Ltd. |
|
|
97,935 |
|
|
|
|
|
|
|
|
| Europe - 29.4% |
|
|
|
|
| France - 2.3% |
|
|
|
|
| 1,375 |
|
Schlumberger, Ltd. |
|
|
93,926 |
|
| 2,400 |
|
Total SA, ADR |
|
|
122,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
216,590 |
|
|
|
|
|
|
|
|
| Germany - 2.8% |
|
|
|
|
| 790 |
|
Muenchener Rueckver |
|
|
96,809 |
|
| 1,725 |
|
Siemens AG, ADR |
|
|
164,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
261,736 |
|
|
|
|
|
|
|
|
| Ireland - 2.3% |
|
|
|
|
| 1,800 |
|
Accenture, PLC |
|
|
95,814 |
|
| 2,725 |
|
Covidien, PLC |
|
|
122,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
218,466 |
|
|
|
|
|
|
|
|
| Italy - 1.1% |
|
|
|
|
| 25,550 |
|
Enel SPA |
|
|
103,649 |
|
|
|
|
|
|
|
|
| Norway - 1.1% |
|
|
|
|
| 3,100 |
|
Seadrill, Ltd. |
|
|
102,858 |
|
|
|
|
|
|
|
|
| Spain - 1.9% |
|
|
|
|
| 10,300 |
|
Banco Bilbao Vizcaya Argentaria SA, ADR |
|
|
88,271 |
|
| 1,150 |
|
Inditex SA |
|
|
93,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
182,151 |
|
|
|
|
|
|
|
|
| Sweden - 0.9% |
|
|
|
|
| 1,650 |
|
Autoliv, Inc. |
|
|
88,259 |
|
|
|
|
|
|
|
|
| Switzerland - 5.3% |
|
|
|
|
| 1,400 |
|
ACE, Ltd. |
|
|
98,168 |
|
| 600 |
|
Kuehne & Nagel International |
|
|
67,187 |
|
| 2,610 |
|
Nestle SA |
|
|
149,875 |
|
| 112 |
|
SGS SA |
|
|
184,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
499,956 |
|
|
|
|
|
|
|
|
| United Kingdom - 11.7% |
|
|
|
|
| 1,000 |
|
British American Tobacco, PLC |
|
|
47,440 |
|
| 3,900 |
|
Burberry Group, PLC |
|
|
71,711 |
|
| 36,800 |
|
Centrica, PLC |
|
|
165,286 |
|
| 1,400 |
|
Diageo, PLC, ADR |
|
|
122,388 |
|
| 4,100 |
|
GlaxoSmithKline, PLC, ADR |
|
|
187,083 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
|
Name of Issuer |
|
Fair Value ($) |
|
| |
8,800 |
|
|
Pearson, PLC,
ADR |
|
|
166,056 |
|
| |
2,750 |
|
|
Royal Dutch Shell, PLC, ADR |
|
|
209,028 |
|
| |
22,300 |
|
|
Tesco, PLC |
|
|
139,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,108,518 |
|
|
|
|
|
|
|
|
|
|
| |
North America - 61.5% |
|
|
|
|
|
|
Bermuda - 1.0% |
|
|
|
|
| |
1,525 |
|
|
PartnerRe, Ltd. |
|
|
97,920 |
|
|
|
|
|
|
|
|
|
|
|
|
Canada - 2.4% |
|
|
|
|
| |
6,000 |
|
|
Rogers Communications, Inc. |
|
|
231,060 |
|
|
|
|
|
|
|
|
|
|
|
|
United States - 58.1% |
|
|
|
|
| |
1,150 |
|
|
3M Co. |
|
|
93,990 |
|
| |
525 |
|
|
Apache Corp. |
|
|
47,555 |
|
| |
4,100 |
|
|
Applied Materials, Inc. |
|
|
43,911 |
|
| |
1,300 |
|
|
Automatic Data Processing, Inc. |
|
|
70,213 |
|
| |
1,900 |
|
|
Baxter International, Inc. |
|
|
94,012 |
|
| |
900 |
|
|
Becton Dickinson & Co. |
|
|
67,248 |
|
| |
1,500 |
|
|
Broadcom Corp. * |
|
|
44,040 |
|
| |
1,125 |
|
|
Cardinal Health, Inc. |
|
|
45,686 |
|
| |
775 |
|
|
Caterpillar, Inc. |
|
|
70,215 |
|
| |
2,425 |
|
|
Chevron Corp. |
|
|
258,020 |
|
| |
1,225 |
|
|
Deere & Co. |
|
|
94,754 |
|
| |
3,100 |
|
|
EI du Pont de Nemours & Co. |
|
|
141,918 |
|
| |
2,350 |
|
|
Emerson Electric Co. |
|
|
109,486 |
|
| |
525 |
|
|
Franklin Resources, Inc. |
|
|
50,432 |
|
| |
1,850 |
|
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
68,062 |
|
| |
2,250 |
|
|
General Mills, Inc. |
|
|
90,923 |
|
| |
500 |
|
|
Goldman Sachs Group, Inc. |
|
|
45,215 |
|
| |
2,250 |
|
|
Home Depot, Inc. |
|
|
94,590 |
|
| |
1,350 |
|
|
Honeywell International, Inc. |
|
|
73,373 |
|
| |
900 |
|
|
Illinois Tool Works, Inc. |
|
|
42,039 |
|
| |
5,800 |
|
|
Intel Corp. |
|
|
140,650 |
|
| |
1,425 |
|
|
International Business Machines Corp. |
|
|
262,029 |
|
| |
2,600 |
|
|
Johnson & Johnson |
|
|
170,508 |
|
| |
4,200 |
|
|
JPMorgan Chase & Co. |
|
|
139,650 |
|
| |
3,400 |
|
|
Kinder Morgan, Inc. |
|
|
109,378 |
|
| |
2,100 |
|
|
Linear Technology Corp. |
|
|
63,063 |
|
| |
1,050 |
|
|
M&T Bank Corp. |
|
|
80,157 |
|
| |
2,750 |
|
|
Marathon Petroleum Corp. |
|
|
91,548 |
|
| |
3,800 |
|
|
Marsh & McLennan Cos., Inc. |
|
|
120,156 |
|
| |
1,900 |
|
|
McDonald’s Corp. |
|
|
190,627 |
|
| |
3,325 |
|
|
Merck & Co., Inc. |
|
|
125,352 |
|
| |
2,575 |
|
|
Microsoft Corp. |
|
|
66,847 |
|
| |
1,725 |
|
|
Occidental Petroleum Corp. |
|
|
161,632 |
|
| |
3,000 |
|
|
Oracle Corp. |
|
|
76,950 |
|
| |
2,200 |
|
|
PepsiCo, Inc. |
|
|
145,970 |
|
| |
7,900 |
|
|
Pfizer, Inc. |
|
|
170,956 |
|
| |
1,700 |
|
|
Philip Morris International, Inc. |
|
|
133,416 |
|
| |
1,775 |
|
|
Procter & Gamble Co. |
|
|
118,410 |
|
| |
750 |
|
|
Prudential Financial, Inc. |
|
|
37,590 |
|
| |
3,600 |
|
|
Qualcomm, Inc. |
|
|
196,920 |
|
| |
1,725 |
|
|
Snap-On, Inc. |
|
|
87,320 |
|
See accompanying notes to
financial statements.
|
|
|
| 16 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Global Dividend Growth Fund (Continued) |
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
|
Name of Issuer |
|
Fair Value ($) |
|
| |
1,850 |
|
|
St. Jude Medical, Inc. |
|
|
63,455 |
|
| |
925 |
|
|
Stanley Black & Decker, Inc. |
|
|
62,530 |
|
| |
2,800 |
|
|
Target Corp. |
|
|
143,416 |
|
| |
1,500 |
|
|
TJX Cos., Inc. |
|
|
96,825 |
|
| |
1,375 |
|
|
Travelers Cos., Inc. |
|
|
81,359 |
|
| |
1,125 |
|
|
Tupperware Brands Corp. |
|
|
62,966 |
|
| |
650 |
|
|
Union Pacific Corp. |
|
|
68,861 |
|
| |
1,000 |
|
|
United Parcel Service, Inc. |
|
|
73,190 |
|
| |
1,200 |
|
|
United Technologies Corp. |
|
|
87,708 |
|
| |
2,700 |
|
|
US Bancorp |
|
|
73,035 |
|
| |
5,800 |
|
|
Verizon Communications, Inc. |
|
|
232,696 |
|
| |
850 |
|
|
Wal-Mart Stores, Inc. |
|
|
50,796 |
|
| |
2,400 |
|
|
Wells Fargo & Co. |
|
|
66,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,497,792 |
|
|
|
|
|
|
|
|
|
|
| |
Total Common Stocks |
|
|
|
|
| |
(cost: $8,822,604) |
|
|
9,207,505 |
|
|
|
|
|
|
|
|
|
|
| |
Closed-End Mutual Funds - 1.6% |
|
|
|
|
| |
2,525 |
|
|
Kayne Anderson MLP Investment Co. |
|
|
76,684 |
|
| |
2,600 |
|
|
Tortoise Energy Capital Corp. |
|
|
69,758 |
|
|
|
|
|
|
|
|
|
|
| |
Total Closed-End Mutual Funds |
|
|
|
|
| |
(cost: $119,740) |
|
|
146,442 |
|
|
|
|
|
|
|
|
|
|
| |
Total Investments in Securities - 98.8% |
|
|
|
|
| |
(cost: $8,942,344) |
|
|
9,353,947 |
|
| |
Other Assets and Liabilities, net - 1.2% |
|
|
114,409 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Net Assets - 100.0% |
|
$ |
9,468,356 |
|
|
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
MLP — Master Limited Partnership
PLC — Public Limited Company
See accompanying notes to
financial statements.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Global Dividend Growth Fund (Continued)
|
A summary of the inputs used to value the Fund’s net assets as of December 31,
2011 is as follows (see notes to schedule of investments):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Investment in Securities |
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Australia |
|
|
|
407,270 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
407,270 |
|
| Bermuda |
|
|
|
97,920 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
97,920 |
|
| Canada |
|
|
|
231,060 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
231,060 |
|
| China/Hong Kong |
|
|
|
93,345 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
93,345 |
|
| France |
|
|
|
216,590 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
216,590 |
|
| Germany |
|
|
|
164,927 |
|
|
|
|
96,809 |
|
|
|
|
— |
|
|
|
|
261,736 |
|
| Ireland |
|
|
|
218,466 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
218,466 |
|
| Italy |
|
|
|
— |
|
|
|
|
103,649 |
|
|
|
|
— |
|
|
|
|
103,649 |
|
| Japan |
|
|
|
— |
|
|
|
|
97,935 |
|
|
|
|
— |
|
|
|
|
97,935 |
|
| Norway |
|
|
|
102,858 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
102,858 |
|
| Spain |
|
|
|
88,271 |
|
|
|
|
93,880 |
|
|
|
|
— |
|
|
|
|
182,151 |
|
| Sweden |
|
|
|
88,259 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
88,259 |
|
| Switzerland |
|
|
|
98,168 |
|
|
|
|
401,788 |
|
|
|
|
— |
|
|
|
|
499,956 |
|
| United Kingdom |
|
|
|
684,555 |
|
|
|
|
423,963 |
|
|
|
|
— |
|
|
|
|
1,108,518 |
|
| United States |
|
|
|
5,497,792 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
5,497,792 |
|
|
|
|
|
7,989,481 |
|
|
|
|
1,218,024 |
|
|
|
|
— |
|
|
|
|
9,207,505 |
|
| Closed-End Mutual Funds |
|
|
|
146,442 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
146,442 |
|
| Total: |
|
|
|
8,135,923 |
|
|
|
|
1,218,024 |
|
|
|
|
— |
|
|
|
|
9,353,947 |
|
The Fund adjusts the closing price of foreign equity securities by applying a systematic process for
events occurring after the close of the foreign exchange. At each reporting period, this process is applied for all foreign securities and therefore all foreign securities are classified as level 2. There are no transfers between level 1 and level 2
between reporting periods as a result of applying this process. Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the
reporting period.
See accompanying notes to
financial statements.
|
|
|
| 18 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
[This
page intentionally left blank.]
|
| |
| |
| Sit Large Cap Growth Fund |
|
|
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.
The Sit Large Cap Growth Fund’s six-month return was
-4.40%,
compared to the -3.92% return for the Russell 1000® Growth Index. The S&P 500® Index return for the period was
-3.69%.
U.S. equity markets were volatile during the second half of 2011, with most indices showing double digit declines during the third quarter, followed by double digit gains in the fourth quarter. The
European sovereign debt crisis took center stage, with a moderation in growth in developing economies, particularly China, causing additional concern. However, recent U.S. economic data has been relatively encouraging given the woes in Europe and
continues to indicate that the sluggish recovery should continue. In terms of our current strategy, nothing has materially changed our key investment themes and sector strategies that we have highlighted over the past several quarters. We feel
strongly that an emphasis on “quality” is particularly important, as risks (European recession, excessive government debt, geopolitics) to the fragile global economic recovery still exist. It is our belief that companies with stable
earnings growth, strong cash flow generation, and minimal debt levels will outperform the overall market, as economic growth remains quite sluggish and investors seek firms that have financial flexibility to repurchase stock, increase dividends, or
make accretive acquisitions.
The Fund remains well diversified among sectors, with the largest sector weights in electronic
technology and technology services. We believe there are multiple growth drivers for the technology sectors, particularly for companies with exposure to key secular growth areas, such as mobile commerce, the deployment of upgraded telecommunications
infrastructure, and sustained corporate demand for products and services that improve productivity. The Fund also has a large weighting in the consumer non-durables sector, which offers stable earnings growth, high dividends, and exposure to
faster-growing, emerging markets.
Relative to the Russell 1000 Growth Index, stock selection in energy minerals, technology
services, and finance sectors negatively impacted performance during the past six months. Within energy minerals, our positions in Apache and Walter Energy hurt performance over the period, along with the absence of Exxon Mobil, which outperformed
the sector and is heavily weighted within the Russell 1000
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000
investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the Russell 1000® Growth Index. Past performance
does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
It is not possible to invest directly in an index.
Growth Index. The weakness within the technology services sector was largely due to our positions in Oracle and Salesforce.com. Conversely, strong stock selection in process industries and retail trade
sectors contributed positively to relative performance over the period. Top performers in these sectors included Ecolab, CF Industries, TJX, and Target.
Based on the strong fundamentals and valuations for companies held in the Fund, we remain enthusiastic about the long-term outlook.
Roger J. Sit
Ronald D. Sit
Michael J. Stellmacher
Portfolio Managers
|
|
|
| 20 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| as of December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sit Large
Cap Growth
Fund |
|
Russell
1000®
Growth
Index
1 |
|
Russell
1000®
Index
2 |
| Six Month |
|
|
|
-4.40 |
% |
|
|
|
-3.92 |
% |
|
|
|
-4.58 |
% |
| One Year |
|
|
|
-0.53 |
|
|
|
|
2.64 |
|
|
|
|
1.50 |
|
| Five Year |
|
|
|
1.22 |
|
|
|
|
2.50 |
|
|
|
|
-0.02 |
|
| Ten Year |
|
|
|
2.35 |
|
|
|
|
2.60 |
|
|
|
|
3.34 |
|
| Since Inception 3 (9/2/82) |
|
|
|
9.31 |
|
|
|
|
10.27 |
|
|
|
|
11.15 |
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may
have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as
reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the
performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns
for periods greater than one year are compounded average annual rates of return.
1 Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell
1000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
2 Russell 1000® Index is an unmanaged index
that measures the performance of approximately 1,000 of the largest U.S. companies by market capitalization.
3 On 6/6/93, the Fund’s investment objective changed to allow for a portfolio of 100% stocks. Prior to that time, the
portfolio was required to contain no more than 80% stocks.
PORTFOLIO SUMMARY
|
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$41.70 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$43.96 |
|
Per Share |
|
|
| Total Net Assets: |
|
$273.9 |
|
Million |
|
|
| Weighted Average Market Cap: |
|
$87.2 |
|
Billion |
|
|
TOP 10 HOLDINGS
1. Apple, Inc.
2. International Business Machines Corp.
3. Google, Inc.
4. Qualcomm, Inc.
5. Chevron Corp.
6. Occidental Petroleum Corp.
7. Oracle Corp.
8. Coca Cola Co.
9. McDonald’s Corp.
10. Philip Morris International, Inc.
Based on total net assets as of December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Large Cap Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
|
| Common Stocks - 98.6% |
|
|
|
|
| Communications - 1.5% |
|
|
|
|
| 45,900 |
|
Rogers Communications, Inc. |
|
|
1,767,609 |
|
| 55,200 |
|
Verizon Communications, Inc. |
|
|
2,214,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,982,233 |
|
|
|
|
|
|
|
|
| Consumer Durables - 0.9% |
|
|
|
|
| 45,100 |
|
Tupperware Brands Corp. |
|
|
2,524,247 |
|
|
|
|
|
|
|
|
| Consumer Non-Durables - 11.0% |
|
|
|
|
| 29,200 |
|
Coach, Inc. |
|
|
1,782,368 |
|
| 96,500 |
|
Coca-Cola Co. |
|
|
6,752,105 |
|
| 65,900 |
|
General Mills, Inc. |
|
|
2,663,019 |
|
| 27,300 |
|
NIKE, Inc. |
|
|
2,630,901 |
|
| 82,400 |
|
PepsiCo, Inc. |
|
|
5,467,240 |
|
| 79,300 |
|
Philip Morris International, Inc. |
|
|
6,223,464 |
|
| 68,200 |
|
Procter & Gamble Co. |
|
|
4,549,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
30,068,719 |
|
|
|
|
|
|
|
|
| Consumer Services - 3.2% |
|
|
|
|
| 64,000 |
|
McDonald’s Corp. |
|
|
6,421,120 |
|
| 23,100 |
|
Visa, Inc. |
|
|
2,345,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,766,463 |
|
|
|
|
|
|
|
|
| Electronic Technology - 17.8% |
|
|
|
|
| 32,400 |
|
Apple, Inc. * |
|
|
13,122,000 |
|
| 135,300 |
|
Applied Materials, Inc. |
|
|
1,449,063 |
|
| 195,500 |
|
Atmel Corp. * |
|
|
1,583,550 |
|
| 82,000 |
|
Broadcom Corp. * |
|
|
2,407,520 |
|
| 151,100 |
|
Ciena Corp. * |
|
|
1,828,310 |
|
| 74,900 |
|
EMC Corp. * |
|
|
1,613,346 |
|
| 17,000 |
|
F5 Networks, Inc. * |
|
|
1,804,040 |
|
| 111,100 |
|
Intel Corp. |
|
|
2,694,175 |
|
| 65,300 |
|
International Business Machines Corp. |
|
|
12,007,364 |
|
| 168,400 |
|
Qualcomm, Inc. |
|
|
9,211,480 |
|
| 30,700 |
|
VeriFone Systems, Inc. * |
|
|
1,090,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
48,811,312 |
|
|
|
|
|
|
|
|
| Energy Minerals - 8.6% |
|
|
|
|
| 27,800 |
|
Apache Corp. |
|
|
2,518,124 |
|
| 84,600 |
|
Chevron Corp. |
|
|
9,001,440 |
|
| 46,900 |
|
Marathon Petroleum Corp. |
|
|
1,561,301 |
|
| 83,200 |
|
Occidental Petroleum Corp. |
|
|
7,795,840 |
|
| 50,100 |
|
Southwestern Energy Co. * |
|
|
1,600,194 |
|
| 16,400 |
|
Walter Energy, Inc. |
|
|
993,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
23,470,083 |
|
|
|
|
|
|
|
|
| Finance - 3.5% |
|
|
|
|
| 28,100 |
|
ACE, Ltd. |
|
|
1,970,372 |
|
| 29,300 |
|
Franklin Resources, Inc. |
|
|
2,814,558 |
|
| 14,700 |
|
Goldman Sachs Group, Inc. |
|
|
1,329,321 |
|
| 51,600 |
|
JPMorgan Chase & Co. |
|
|
1,715,700 |
|
| 57,500 |
|
Marsh & McLennan Cos., Inc. |
|
|
1,818,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,648,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Health Services - 1.5% |
|
|
|
|
| 19,700 |
|
Express Scripts, Inc. * |
|
|
880,393 |
|
| 28,000 |
|
McKesson Corp. |
|
|
2,181,480 |
|
| 19,900 |
|
Medco Health Solutions, Inc. * |
|
|
1,112,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,174,283 |
|
|
|
|
|
|
|
|
| Health Technology - 8.1% |
|
|
|
|
| 34,900 |
|
Allergan, Inc. |
|
|
3,062,126 |
|
| 18,900 |
|
Baxter International, Inc. |
|
|
935,172 |
|
| 57,400 |
|
Celgene Corp. * |
|
|
3,880,240 |
|
| 59,800 |
|
Gilead Sciences, Inc. * |
|
|
2,447,614 |
|
| 6,700 |
|
Intuitive Surgical, Inc. * |
|
|
3,102,167 |
|
| 124,500 |
|
Pfizer, Inc. |
|
|
2,694,180 |
|
| 79,700 |
|
St. Jude Medical, Inc. |
|
|
2,733,710 |
|
| 34,900 |
|
Stryker Corp. |
|
|
1,734,879 |
|
| 36,800 |
|
Thermo Fisher Scientific, Inc. * |
|
|
1,654,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
22,244,984 |
|
|
|
|
|
|
|
|
| Industrial Services - 1.9% |
|
|
|
|
| 49,600 |
|
Schlumberger, Ltd. |
|
|
3,388,176 |
|
| 52,500 |
|
Seadrill, Ltd. |
|
|
1,741,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,130,126 |
|
|
|
|
|
|
|
|
| Non-Energy Minerals - 1.0% |
|
|
|
|
| 19,600 |
|
Allegheny Technologies, Inc. |
|
|
936,880 |
|
| 51,400 |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
1,891,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,827,886 |
|
|
|
|
|
|
|
|
| Process Industries - 4.2% |
|
|
|
|
| 22,500 |
|
CF Industries Holdings, Inc. |
|
|
3,262,050 |
|
| 71,600 |
|
Ecolab, Inc. |
|
|
4,139,196 |
|
| 29,900 |
|
EI du Pont de Nemours & Co. |
|
|
1,368,822 |
|
| 26,000 |
|
Praxair, Inc. |
|
|
2,779,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
11,549,468 |
|
|
|
|
|
|
|
|
| Producer Manufacturing - 9.4% |
|
|
|
|
| 53,300 |
|
3M Co. |
|
|
4,356,209 |
|
| 74,500 |
|
Danaher Corp. |
|
|
3,504,480 |
|
| 38,200 |
|
Deere & Co. |
|
|
2,954,770 |
|
| 68,700 |
|
Emerson Electric Co. |
|
|
3,200,733 |
|
| 15,700 |
|
Flowserve Corp. |
|
|
1,559,324 |
|
| 29,300 |
|
Honeywell International, Inc. |
|
|
1,592,455 |
|
| 61,200 |
|
Johnson Controls, Inc. |
|
|
1,913,112 |
|
| 14,400 |
|
Precision Castparts Corp. |
|
|
2,372,976 |
|
| 59,800 |
|
United Technologies Corp. |
|
|
4,370,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
25,824,841 |
|
|
|
|
|
|
|
|
| Retail Trade - 8.8% |
|
|
|
|
| 16,200 |
|
Amazon.com, Inc. * |
|
|
2,804,220 |
|
| 35,461 |
|
Costco Wholesale Corp. |
|
|
2,954,610 |
|
| 82,800 |
|
Dick’s Sporting Goods, Inc. |
|
|
3,053,664 |
|
| 67,200 |
|
Home Depot, Inc. |
|
|
2,825,088 |
|
| 55,100 |
|
Kohl’s Corp. |
|
|
2,719,185 |
|
See accompanying notes to
financial statements.
|
|
|
| 22 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Large Cap Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
|
|
| 74,600 |
|
Target Corp. |
|
|
3,821,012 |
|
| 58,800 |
|
TJX Cos., Inc. |
|
|
3,795,540 |
|
| 35,400 |
|
Wal-Mart Stores, Inc. |
|
|
2,115,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
24,088,823 |
|
|
|
|
|
|
|
|
| Technology Services - 13.0% |
|
| 69,400 |
|
Accenture, PLC |
|
|
3,694,162 |
|
| 52,200 |
|
Cognizant Technology Solutions Corp.
* |
|
|
3,356,982 |
|
| 14,600 |
|
Google, Inc. * |
|
|
9,430,140 |
|
| 40,500 |
|
Informatica Corp. * |
|
|
1,495,665 |
|
| 266,600 |
|
Oracle Corp. |
|
|
6,838,290 |
|
| 8,000 |
|
priceline.com, Inc. * |
|
|
3,741,680 |
|
| 21,000 |
|
Salesforce.com, Inc. * |
|
|
2,130,660 |
|
| 25,937 |
|
Teradata Corp. * |
|
|
1,258,204 |
|
| 42,000 |
|
VMware, Inc. * |
|
|
3,493,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
35,439,763 |
|
|
|
|
|
|
|
|
| Transportation - 2.9% |
|
| 39,300 |
|
Expeditors International of Washington, Inc. |
|
|
1,609,728 |
|
| 41,000 |
|
Union Pacific Corp. |
|
|
4,343,540 |
|
| 28,100 |
|
United Parcel Service, Inc. |
|
|
2,056,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,009,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
| Utilities - 1.3% |
|
| 86,000 |
|
Calpine Corp. * |
|
|
1,404,380 |
|
| 62,200 |
|
Wisconsin Energy Corp. |
|
|
2,174,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,578,892 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $222,814,190) |
|
|
270,140,131 |
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities - 98.6%
(cost: $222,814,190) |
|
|
270,140,131 |
|
| Other Assets and Liabilities, net 1.4% |
|
|
3,756,480 |
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
273,896,611 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
PLC — Public Limited Company
A summary of the
inputs used to value the Fund’s net assets as of December 31, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Investment in Securities |
|
|
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks ** |
|
|
|
270,140,131 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
270,140,131 |
|
| Total: |
|
|
|
270,140,131 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
270,140,131 |
|
| ** |
For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
For the reporting period, there were no transfers between levels 1, 2 and 3.
See accompanying notes to
financial statements.
OBJECTIVE & STRATEGY
The objective of the Sit
Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of growth companies with capitalizations of $2 billion to $15 billion at the time of
purchase.
The Sit Mid Cap Growth Fund’s return for the second half of 2011
was -11.65%, compared to -10.26% for the Russell Mid Cap® Growth Index. The S&P Mid Cap® Index fell -9.47% during the period.
Despite a stock market rebound in the fourth quarter, stock prices fell over the full six month period due to a very weak third quarter, as risks emerging in Europe weighed on sentiment. Small and mid cap
stocks were hit particularly hard, which is not unusual given their more volatile nature, as investors became quite defensive over the period. The Fund’s performance results during the second half of 2011 reflected this difficult environment.
Relative to the Russell Mid Cap Growth Index, the key reason for the Fund’s underperformance was stock selection in several sectors, including electronic technology, consumer durables, and energy minerals. Stocks that lagged in these sectors
over the period included Veeco Instruments, Atmel, Fossil, Walter Energy, and Southwestern Energy. On the positive side, strong stock selection in retail trade, producer manufacturing, and health technology sectors aided performance during the
second half of the year. Top performers in these sectors include TJX, Macy’s, Goodrich, Trimble Navigation, Celgene, and Intuitive Surgical.
As we begin 2012, our investment strategy is largely based on our economic outlook, which calls for a modest economic growth in developed economies, albeit with some potential for “downside
risk” in Europe, and stronger growth in emerging markets. After a volatile 2011, investors generally remain risk averse given the headwinds of excessive government debt, continued high unemployment, and policymakers’ ability to engineer a
“soft landing” in China. Although the uncertainties that are challenging investor sentiment will not diminish immediately, we believe that mid cap stock prices reflect considerable “bad news” and there are many attractive
opportunities for long-term investments. For example, the prospects for the technology sector remain bright, largely due to the sectors’ strong financial characteristics and secular growth in several key areas, especially related to wireless
communication. The producer manufacturing sector continues to experience a rebound, largely driven by global infrastructure needs, particularly in emerging markets. Key areas of emphasis within this sector include commercial aerospace, automation,
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000
investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the Russell Midcap® Growth Index. Past
performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell Midcap® Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth
values. It is not possible to invest directly in an index.
and agriculture. In terms of individual company characteristics, regardless of sector, our focus remains on firms that have strong balance sheets and cash flow and business models that offer sustainable
growth, even in a low-growth economic environment
Our research team remains committed and focused on identifying long-term
investment opportunities that will help our shareholders achieve their investment goals over the long term.
Roger J. Sit
Kent L. Johnson
Matthew T. Loucks
Robert W. Sit
Portfolio Managers
|
|
|
| 24 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
|
|
|
|
|
|
|
|
|
|
|
|
|
| as of December 31,
2011 |
|
|
|
|
|
|
|
|
|
| |
|
Sit
Mid Cap
Growth Fund |
|
|
Russell
Midcap®
Growth
Index
1 |
|
|
Russell
Midcap®
Index 2 |
|
| Six Month |
|
|
-11.65% |
|
|
|
-10.26% |
|
|
|
-8.91% |
|
| One Year |
|
|
-6.53 |
|
|
|
-1.65 |
|
|
|
-1.55 |
|
| Five Year |
|
|
0.91 |
|
|
|
2.44 |
|
|
|
1.41 |
|
| Ten Year |
|
|
3.42 |
|
|
|
5.29 |
|
|
|
6.99 |
|
| Since Inception |
|
|
11.37 |
|
|
|
n/a |
|
|
|
n/a |
|
| (9/2/82) |
|
|
|
|
|
|
|
|
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may
have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as
reinvestment of all dividends and capital gains and all fee waivers. Without the fee waivers total return and yield figures would have been lower. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or
exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund
shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 Russell Midcap® Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth
values. It is not possible to invest directly in an index.
2 Russell Midcap® Index is an unmanaged index that measures the performance of approximately 800 of
the smallest companies in the Russell 1000® Index.
PORTFOLIO SUMMARY
|
|
|
|
|
|
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$14.03 |
|
Per Share |
|
|
| Net Asset Value 6/30/11: |
|
$15.88 |
|
Per Share |
|
|
| Total Net Assets: |
|
$137.1 |
|
Million |
|
|
| Weighted Average Market Cap: |
|
$11.1 |
|
Billion |
|
|
TOP 10 HOLDINGS
1. Ecolab, Inc.
2. TJX Cos., Inc.
3. Cognizant Technology Solutions Corp.
4. Cummins, Inc.
5. ANSYS, Inc.
6. Coach, Inc.
7. Ulta Salon Cosmetics &
Fragrance, Inc.
8. Intuitive Surgical, Inc.
9. Tupperware Brands Corp.
10. Allergan, Inc.
Based on total net assets as of December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Mid Cap Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Common
Stocks - 98.2% |
|
|
|
|
| Commercial Services - 0.5% |
|
|
|
|
| 7,600 |
|
Factset Research Systems, Inc. |
|
|
663,328 |
|
|
|
|
|
|
|
|
| Consumer Durables - 4.5% |
|
|
|
|
| 16,500 |
|
Fossil, Inc. * |
|
|
1,309,440 |
|
| 11,900 |
|
Polaris Industries, Inc. |
|
|
666,162 |
|
| 34,200 |
|
Snap-On, Inc. |
|
|
1,731,204 |
|
| 44,700 |
|
Tupperware Brands Corp. |
|
|
2,501,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,208,665 |
|
|
|
|
|
|
|
|
| Consumer Non-Durables - 5.4% |
|
|
|
|
| 44,100 |
|
Coach, Inc. |
|
|
2,691,864 |
|
| 62,300 |
|
Coca-Cola Enterprises, Inc. |
|
|
1,606,094 |
|
| 18,000 |
|
Hansen Natural Corp. * |
|
|
1,658,520 |
|
| 87,500 |
|
Iconix Brand Group, Inc. * |
|
|
1,425,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,381,853 |
|
|
|
|
|
|
|
|
| Consumer Services - 2.8% |
|
|
|
|
| 4,800 |
|
Chipotle Mexican Grill, Inc. * |
|
|
1,621,152 |
|
| 60,600 |
|
International Game Technology |
|
|
1,042,320 |
|
| 39,532 |
|
Marriott International, Inc. |
|
|
1,153,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,816,620 |
|
|
|
|
|
|
|
|
| Electronic Technology - 9.0% |
|
|
|
|
| 156,000 |
|
Atmel Corp. * |
|
|
1,263,600 |
|
| 64,200 |
|
Broadcom Corp. * |
|
|
1,884,912 |
|
| 89,800 |
|
Ciena Corp. * |
|
|
1,086,580 |
|
| 18,900 |
|
F5 Networks, Inc. * |
|
|
2,005,668 |
|
| 46,700 |
|
Linear Technology Corp. |
|
|
1,402,401 |
|
| 35,500 |
|
NetApp, Inc. * |
|
|
1,287,585 |
|
| 54,100 |
|
Skyworks Solutions, Inc. * |
|
|
877,502 |
|
| 30,100 |
|
Synaptics, Inc. * |
|
|
907,515 |
|
| 42,500 |
|
Veeco Instruments, Inc. * |
|
|
884,000 |
|
| 19,800 |
|
VeriFone Systems, Inc. * |
|
|
703,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,303,059 |
|
|
|
|
|
|
|
|
| Energy Minerals - 4.1% |
|
|
|
|
| 11,000 |
|
Apache Corp. |
|
|
996,380 |
|
| 19,400 |
|
Marathon Petroleum Corp. |
|
|
645,826 |
|
| 31,500 |
|
Murphy Oil Corp. |
|
|
1,755,810 |
|
| 32,800 |
|
Southwestern Energy Co. * |
|
|
1,047,632 |
|
| 18,800 |
|
Walter Energy, Inc. |
|
|
1,138,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,584,176 |
|
|
|
|
|
|
|
|
| Finance - 8.2% |
|
|
|
|
| 24,950 |
|
ACE, Ltd. |
|
|
1,749,494 |
|
| 20,500 |
|
Affiliated Managers Group, Inc. * |
|
|
1,966,975 |
|
| 29,000 |
|
Ameriprise Financial, Inc. |
|
|
1,439,560 |
|
| 12,800 |
|
IntercontinentalExchange, Inc. * |
|
|
1,543,040 |
|
| 47,700 |
|
Marsh & McLennan Cos., Inc. |
|
|
1,508,274 |
|
| 21,100 |
|
Signature Bank/New York NY * |
|
|
1,265,789 |
|
| 21,400 |
|
T Rowe Price Group, Inc. |
|
|
1,218,730 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 62,200 |
|
TCF Financial Corp. |
|
|
641,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
11,333,766 |
|
|
|
|
|
|
|
|
| Health Services - 3.1% |
|
|
|
|
| 60,400 |
|
Allscripts Healthcare Solutions, Inc.
* |
|
|
1,143,976 |
|
| 37,800 |
|
Express Scripts, Inc. * |
|
|
1,689,282 |
|
| 9,400 |
|
Laboratory Corp. of America Holdings
* |
|
|
808,118 |
|
| 7,500 |
|
Stericycle, Inc. * |
|
|
584,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,225,776 |
|
|
|
|
|
|
|
|
| Health Technology - 10.1% |
|
|
|
|
| 28,500 |
|
Allergan, Inc. |
|
|
2,500,590 |
|
| 92,100 |
|
Amylin Pharmaceuticals, Inc. * |
|
|
1,048,098 |
|
| 35,500 |
|
Celgene Corp. * |
|
|
2,399,800 |
|
| 18,700 |
|
Edwards Lifesciences Corp. * |
|
|
1,322,090 |
|
| 13,400 |
|
IDEXX Laboratories, Inc. * |
|
|
1,031,264 |
|
| 5,446 |
|
Intuitive Surgical, Inc. * |
|
|
2,521,552 |
|
| 29,450 |
|
Thermo Fisher Scientific, Inc. * |
|
|
1,324,367 |
|
| 27,300 |
|
Thoratec Corp. * |
|
|
916,188 |
|
| 12,600 |
|
Varian Medical Systems, Inc. * |
|
|
845,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
13,909,787 |
|
|
|
|
|
|
|
|
| Industrial Services - 4.4% |
|
|
|
|
| 47,000 |
|
Chicago Bridge & Iron Co. NV |
|
|
1,776,600 |
|
| 55,000 |
|
McDermott International, Inc. * |
|
|
633,050 |
|
| 17,100 |
|
National Oilwell Varco, Inc. |
|
|
1,162,629 |
|
| 14,950 |
|
Schlumberger, Ltd. |
|
|
1,021,235 |
|
| 43,000 |
|
Seadrill, Ltd. |
|
|
1,426,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,020,254 |
|
|
|
|
|
|
|
|
| Non-Energy Minerals - 2.1% |
|
|
|
|
| 13,600 |
|
Allegheny Technologies, Inc. |
|
|
650,080 |
|
| 18,400 |
|
Haynes International, Inc. |
|
|
1,004,640 |
|
| 116,000 |
|
Stillwater Mining Co. * |
|
|
1,213,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,868,080 |
|
|
|
|
|
|
|
|
| Process Industries - 9.0% |
|
|
|
|
| 17,200 |
|
Airgas, Inc. |
|
|
1,342,976 |
|
| 43,300 |
|
Albemarle Corp. |
|
|
2,230,383 |
|
| 16,200 |
|
CF Industries Holdings, Inc. |
|
|
2,348,676 |
|
| 58,200 |
|
Ecolab, Inc. |
|
|
3,364,542 |
|
| 15,600 |
|
FMC Corp. |
|
|
1,342,224 |
|
| 36,700 |
|
Scotts Miracle-Gro Co. |
|
|
1,713,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,342,324 |
|
|
|
|
|
|
|
|
| Producer Manufacturing - 11.2% |
|
|
|
|
| 31,600 |
|
AGCO Corp. * |
|
|
1,357,852 |
|
| 40,125 |
|
AMETEK, Inc. |
|
|
1,689,262 |
|
| 34,700 |
|
Cooper Industries, PLC |
|
|
1,879,005 |
|
| 31,300 |
|
Cummins, Inc. |
|
|
2,755,026 |
|
| 19,300 |
|
Flowserve Corp. |
|
|
1,916,876 |
|
| 13,900 |
|
Precision Castparts Corp. |
|
|
2,290,581 |
|
| 25,500 |
|
SPX Corp. |
|
|
1,536,885 |
|
See accompanying notes to
financial statements.
|
|
|
| 26 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Mid Cap Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 45,000 |
|
Trimble Navigation, Ltd. * |
|
|
1,953,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
15,378,487 |
|
|
|
|
|
|
|
|
| Retail Trade - 9.4% |
|
|
|
|
| 65,200 |
|
Dick’s Sporting Goods, Inc. |
|
|
2,404,576 |
|
| 33,400 |
|
Lululemon Athletica, Inc. * |
|
|
1,558,444 |
|
| 76,900 |
|
Macy’s, Inc. |
|
|
2,474,642 |
|
| 18,300 |
|
Nordstrom, Inc. |
|
|
909,693 |
|
| 43,900 |
|
TJX Cos., Inc. |
|
|
2,833,745 |
|
| 41,200 |
|
Ulta Salon Cosmetics & Fragrance, Inc.
* |
|
|
2,674,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
12,855,804 |
|
|
|
|
|
|
|
|
| Technology Services - 10.2% |
|
|
|
|
| 47,100 |
|
ANSYS, Inc. * |
|
|
2,697,888 |
|
| 14,700 |
|
Citrix Systems, Inc. * |
|
|
892,584 |
|
| 43,300 |
|
Cognizant Technology Solutions Corp.
* |
|
|
2,784,623 |
|
| 35,400 |
|
Informatica Corp. * |
|
|
1,307,322 |
|
| 4,100 |
|
priceline.com, Inc. * |
|
|
1,917,611 |
|
| 9,000 |
|
Salesforce.com, Inc. * |
|
|
913,140 |
|
| 35,000 |
|
Teradata Corp. * |
|
|
1,697,850 |
|
| 27,500 |
|
Ultimate Software Group, Inc. * |
|
|
1,790,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
14,001,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
Transportation - 2.4% |
|
|
|
|
| 24,100 |
|
CH Robinson Worldwide, Inc. |
|
|
1,681,698 |
|
| 38,700 |
|
Expeditors International of Washington, Inc. |
|
|
1,585,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,266,850 |
|
|
|
|
|
|
|
|
| Utilities - 1.8% |
|
|
|
|
| 51,500 |
|
Calpine Corp. * |
|
|
840,995 |
|
| 25,100 |
|
UGI Corp. |
|
|
737,940 |
|
| 25,600 |
|
Wisconsin Energy Corp. |
|
|
894,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,473,911 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $105,546,287) |
|
|
134,634,558 |
|
|
|
|
|
|
|
|
| Total Investments in Securities - 98.2%
(cost: $105,546,287) |
|
|
134,634,558 |
|
| Other Assets and Liabilities, net 1.8% |
|
|
2,453,551 |
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
137,088,109 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
PLC — Public Limited Company
A summary of the
inputs used to value the Fund’s net assets as of December 31, 2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Investment in Securities |
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks ** |
|
|
|
134,634,558 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
134,634,558 |
|
| Total: |
|
|
|
134,634,558 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
134,634,558 |
|
| ** |
For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
For the reporting period, there were no transfers between levels 1, 2 and 3.
See accompanying notes to
financial statements.
|
| |
| |
| Sit Small Cap Growth Fund |
|
|
OBJECTIVE & STRATEGY
The objective of the Sit
Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in common stocks of companies with 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 December 31, 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.
The Sit Small Cap Growth Fund returned -9.46% over the past six months.
This compares to the six-month return of -10.59% for the Russell 2000® Growth Index and the -9.77% return for
the Russell 2000® Index.
In a highly volatile period, equities prices fell during the second half of 2011, as investors became very risk adverse. This was due to a multitude of issues, including sovereign debt concerns in Europe,
questions about the sustainability of growth in China, continued high unemployment, and continued political dysfunction in the U.S. While there are clearly challenges to overcome, we believe there are enough positive factors to support higher stock
prices in the year ahead. First, economic data within the U.S. have been relatively stable and resilient, particularly a modest pick up in job creation in recent months. Second, inflation and interest rates remain at very low levels. Third,
corporate earnings should continue to grind higher, albeit at a decelerating rate, with strong balance sheets and cash flow supporting share repurchases and dividends. And finally, the decline in small cap share prices has resulted in increasingly
attractive valuations.
The Fund continues to be well-diversified among sectors, with the heaviest weights in health
technology, technology services, and producer manufacturing. In terms of financial characteristics, we continue to emphasize companies with consistent earnings, strong balance sheets, and cash flow generation. We believe that companies with
financial strength can reinvest in their business or make acquisitions to gain market share in a sluggish growth environment and, importantly, weather the “storm” should economic conditions take a turn for the worse. Our research staff
remains focused on identifying companies that can grow without the tailwind of strong economic conditions.
The Fund
outperformed the Russell 2000 Growth Index over the second half of 2011. Relative performance was positively impacted by stock selection in energy minerals, retail trade, and producer manufacturing sectors. Key winners in these sectors included
Northern Oil & Gas, Brigham Exploration, Casey’s General Stores, Trimble Navigation, and Woodward Governor.
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000
investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the Russell 2000® Growth Index. Past performance
does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 Russell 2000® Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values.
It is not possible to invest directly in an index.
Conversely, holdings in electronic technology, technology services, and industrial services negatively impacted returns over the period. In terms of individual stocks, Informatica, Veeco Instruments,
NuVasive, and Stillwater Mining had the greatest negative impact on relative returns during the period.
Although future market
volatility may be on the horizon, we remain enthusiastic about the Fund’s prospects in the year ahead, and we appreciate shareholders’ continued interest.
|
|
|
|
|
| Roger J. Sit |
|
Matt T. Loucks |
|
Michael J. Stellmacher |
| Kent L. Johnson |
|
Robert W. Sit |
|
Portfolio Managers |
|
|
|
| 28 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| as of December 31, 2011 |
|
|
| |
|
Sit
Small Cap
Growth
Fund |
|
Russell 2000®
Growth Index
1 |
|
Russell
2000®
Index 2 |
| Six Month |
|
|
|
-9.46 |
% |
|
|
|
-10.59 |
% |
|
|
|
-9.77 |
% |
| One Year |
|
|
|
-0.23 |
|
|
|
|
-2.91 |
|
|
|
|
-4.18 |
|
| Five Year |
|
|
|
3.03 |
|
|
|
|
2.09 |
|
|
|
|
0.15 |
|
| Ten Year |
|
|
|
4.65 |
|
|
|
|
4.48 |
|
|
|
|
5.62 |
|
| Since Inception
(7/1/94) |
|
|
|
10.07 |
|
|
|
|
6.11 |
|
|
|
|
8.06 |
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may
have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as
reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the
performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns
for periods greater than one year are compounded average annual rates of return.
1 Russell 2000® Growth Index is an unmanaged index that measures the performance of those Russell
2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
2 Russell 2000® Index is an unmanaged index
that measures the performance of the 2,000 smallest companies in the Russell 3000 Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization.
PORTFOLIO SUMMARY
|
|
|
| Net Asset Value 12/31/11: |
|
$39.71 Per Share |
| Net Asset Value 6/30/11: |
|
$43.86 Per Share |
| Total Net Assets: |
|
$70.3 Million |
| Weighted Average Market Cap: |
|
$4.0 Billion |
TOP 10 HOLDINGS
1. Ultimate Software
Group, Inc.
2. Northern Oil and Gas, Inc.
3. Alexion Pharmaceuticals, Inc.
4. Ulta Salon
Cosmetics & Fragrance, Inc.
5. Tupperware Brands Corp.
6. ANSYS, Inc.
7. Casey’s General Stores, Inc.
8. Concur
Technologies, Inc.
9. Informatica Corp.
10. Syntel, Inc.
Based on total net assets as of December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Small Cap Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Common
Stocks - 98.6% |
|
|
|
|
| Commercial Services - 0.9% |
|
|
|
|
| 7,200 |
|
Factset Research Systems, Inc. |
|
|
628,416 |
|
|
|
|
|
|
|
|
| Communications - 1.2% |
|
|
|
|
| 8,750 |
|
SBA Communications Corp. * |
|
|
375,900 |
|
| 24,300 |
|
TW Telecom, Inc. * |
|
|
470,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
846,834 |
|
|
|
|
|
|
|
|
| Consumer Durables - 5.3% |
|
|
|
|
| 4,800 |
|
Fossil, Inc. * |
|
|
380,928 |
|
| 15,800 |
|
Polaris Industries, Inc. |
|
|
884,484 |
|
| 19,100 |
|
Snap-On, Inc. |
|
|
966,842 |
|
| 26,500 |
|
Tupperware Brands Corp. |
|
|
1,483,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,715,459 |
|
|
|
|
|
|
|
|
| Consumer Non-Durables - 5.0% |
|
|
|
|
| 12,900 |
|
Hansen Natural Corp. * |
|
|
1,188,606 |
|
| 43,400 |
|
Iconix Brand Group, Inc. * |
|
|
706,986 |
|
| 29,000 |
|
True Religion Apparel, Inc. * |
|
|
1,002,820 |
|
| 18,700 |
|
Vera Bradley, Inc. * |
|
|
603,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,501,487 |
|
|
|
|
|
|
|
|
| Consumer Services - 1.5% |
|
|
|
|
| 16,000 |
|
Buffalo Wild Wings, Inc. * |
|
|
1,080,160 |
|
|
|
|
|
|
|
|
| Electronic Technology - 9.3% |
|
|
|
|
| 62,700 |
|
Atmel Corp. * |
|
|
507,870 |
|
| 57,300 |
|
Ciena Corp. * |
|
|
693,330 |
|
| 6,700 |
|
F5 Networks, Inc. * |
|
|
711,004 |
|
| 10,700 |
|
MICROS Systems, Inc. * |
|
|
498,406 |
|
| 26,200 |
|
Riverbed Technology, Inc. * |
|
|
615,700 |
|
| 25,800 |
|
Rubicon Technology, Inc. * |
|
|
242,262 |
|
| 46,900 |
|
Skyworks Solutions, Inc. * |
|
|
760,718 |
|
| 15,800 |
|
Synaptics, Inc. * |
|
|
476,370 |
|
| 23,200 |
|
Veeco Instruments, Inc. * |
|
|
482,560 |
|
| 21,300 |
|
VeriFone Systems, Inc. * |
|
|
756,576 |
|
| 31,500 |
|
Volterra Semiconductor Corp. * |
|
|
806,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
6,551,511 |
|
|
|
|
|
|
|
|
| Energy Minerals - 4.6% |
|
|
|
|
| 32,100 |
|
CVR Energy, Inc. |
|
|
601,233 |
|
| 35,000 |
|
Gulfport Energy Corp. * |
|
|
1,030,750 |
|
| 66,300 |
|
Northern Oil and Gas, Inc. * |
|
|
1,589,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,221,857 |
|
|
|
|
|
|
|
|
| Finance - 7.8% |
|
|
|
|
| 11,000 |
|
Affiliated Managers Group, Inc. * |
|
|
1,055,450 |
|
| 17,200 |
|
Allied World Assurance Co. Holdings AG |
|
|
1,082,396 |
|
| 23,300 |
|
Axis Capital Holdings, Ltd. |
|
|
744,668 |
|
| 13,900 |
|
Signature Bank/New York NY * |
|
|
833,861 |
|
| 12,650 |
|
Stifel Financial Corp. * |
|
|
405,433 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 48,500 |
|
TCF Financial
Corp. |
|
|
500,520 |
|
| 28,300 |
|
Validus Holdings, Ltd. |
|
|
891,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,513,778 |
|
|
|
|
|
|
|
|
| Health Services - 2.2% |
|
|
|
|
| 44,500 |
|
Allscripts Healthcare Solutions, Inc.
* |
|
|
842,830 |
|
| 9,200 |
|
Stericycle, Inc. * |
|
|
716,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,559,694 |
|
|
|
|
|
|
|
|
| Health Technology - 14.6% |
|
|
|
|
| 22,100 |
|
Alexion Pharmaceuticals, Inc. * |
|
|
1,580,150 |
|
| 65,800 |
|
Amylin Pharmaceuticals, Inc. * |
|
|
748,804 |
|
| 15,600 |
|
Celgene Corp. * |
|
|
1,054,560 |
|
| 12,800 |
|
Gen-Probe, Inc. * |
|
|
756,736 |
|
| 11,400 |
|
Haemonetics Corp. * |
|
|
697,908 |
|
| 2,700 |
|
Intuitive Surgical, Inc. * |
|
|
1,250,127 |
|
| 15,200 |
|
NuVasive, Inc. * |
|
|
191,368 |
|
| 18,400 |
|
PerkinElmer, Inc. |
|
|
368,000 |
|
| 9,100 |
|
Techne Corp. |
|
|
621,166 |
|
| 31,300 |
|
Thoratec Corp. * |
|
|
1,050,428 |
|
| 21,000 |
|
Tornier NV * |
|
|
378,000 |
|
| 13,900 |
|
United Therapeutics Corp. * |
|
|
656,775 |
|
| 37,100 |
|
Volcano Corp. * |
|
|
882,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
10,236,631 |
|
|
|
|
|
|
|
|
| Industrial Services - 6.1% |
|
|
|
|
| 15,500 |
|
Atwood Oceanics, Inc. * |
|
|
616,745 |
|
| 4,100 |
|
CARBO Ceramics, Inc. |
|
|
505,653 |
|
| 27,700 |
|
Chicago Bridge & Iron Co. NV |
|
|
1,047,060 |
|
| 9,800 |
|
Core Laboratories NV |
|
|
1,116,710 |
|
| 11,700 |
|
Lufkin Industries, Inc. |
|
|
787,527 |
|
| 19,000 |
|
McDermott International, Inc. * |
|
|
218,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,292,385 |
|
|
|
|
|
|
|
|
| Non-Energy Minerals - 1.9% |
|
|
|
|
| 6,750 |
|
Allegheny Technologies, Inc. |
|
|
322,650 |
|
| 9,000 |
|
Haynes International, Inc. |
|
|
491,400 |
|
| 50,600 |
|
Stillwater Mining Co. * |
|
|
529,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,343,326 |
|
|
|
|
|
|
|
|
| Process Industries - 2.9% |
|
|
|
|
| 6,400 |
|
CF Industries Holdings, Inc. |
|
|
927,872 |
|
| 19,000 |
|
Olin Corp. |
|
|
373,350 |
|
| 15,900 |
|
Scotts Miracle-Gro Co. |
|
|
742,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,043,593 |
|
|
|
|
|
|
|
|
| Producer Manufacturing - 11.7% |
|
|
|
|
| 23,400 |
|
AMETEK, Inc. |
|
|
985,140 |
|
| 6,700 |
|
Anixter International, Inc. |
|
|
399,588 |
|
| 14,000 |
|
CLARCOR, Inc. |
|
|
699,860 |
|
| 9,300 |
|
Esterline Technologies Corp. * |
|
|
520,521 |
|
| 28,400 |
|
IDEX Corp. |
|
|
1,053,924 |
|
| 18,500 |
|
Lincoln Electric Holdings, Inc. |
|
|
723,720 |
|
| 10,600 |
|
MTS Systems Corp. |
|
|
431,950 |
|
See accompanying notes to
financial statements.
|
|
|
| 30 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Small Cap Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 24,000 |
|
Rofin-Sinar
Technologies, Inc. * |
|
|
548,400 |
|
| 26,000 |
|
Trimble Navigation, Ltd. * |
|
|
1,128,400 |
|
| 10,000 |
|
Wabtec Corp. |
|
|
699,500 |
|
| 24,500 |
|
Woodward Governor Co. |
|
|
1,002,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,193,788 |
|
|
|
|
|
|
|
|
| Retail Trade - 8.4% |
|
|
|
|
| 26,900 |
|
Casey’s General Stores, Inc. |
|
|
1,385,619 |
|
| 28,300 |
|
Cato Corp. |
|
|
684,860 |
|
| 32,200 |
|
Dick’s Sporting Goods, Inc. |
|
|
1,187,536 |
|
| 18,600 |
|
GameStop Corp. * |
|
|
448,818 |
|
| 15,900 |
|
Lululemon Athletica, Inc. * |
|
|
741,894 |
|
| 22,900 |
|
Ulta Salon Cosmetics & Fragrance, Inc.
* |
|
|
1,486,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,935,395 |
|
|
|
|
|
|
|
|
| Technology Services - 12.4% |
|
|
|
|
| 25,000 |
|
ANSYS, Inc. * |
|
|
1,432,000 |
|
| 9,400 |
|
Citrix Systems, Inc. * |
|
|
570,768 |
|
| 26,900 |
|
Concur Technologies, Inc. * |
|
|
1,366,251 |
|
| 35,000 |
|
Informatica Corp. * |
|
|
1,292,550 |
|
| 25,100 |
|
Solera Holdings, Inc. |
|
|
1,117,954 |
|
| 26,900 |
|
Syntel, Inc. |
|
|
1,258,113 |
|
| 25,900 |
|
Ultimate Software Group, Inc. * |
|
|
1,686,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8,724,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
Transportation - 1.3% |
|
|
|
|
| 18,900 |
|
Hub Group, Inc. * |
|
|
612,927 |
|
| 17,200 |
|
Knight Transportation, Inc. |
|
|
269,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
881,935 |
|
|
|
|
|
|
|
|
| Utilities - 1.5% |
|
|
|
|
| 19,700 |
|
Gas Natural, Inc. |
|
|
224,777 |
|
| 6,300 |
|
ITC Holdings Corp. |
|
|
478,044 |
|
| 13,100 |
|
UGI Corp. |
|
|
385,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,087,961 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $57,972,332) |
|
|
69,358,454 |
|
|
|
|
|
|
|
|
|
|
| Total Investments in Securities - 98.6%
(cost: $57,972,332) |
|
|
69,358,454 |
|
| Other Assets and Liabilities, net 1.4% |
|
|
963,541 |
|
|
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
70,321,995 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
A summary of the inputs used to value the Fund’s net assets as of December 31, 2011 is as follows (see notes to Schedule of Investments):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Investment in Securities |
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
Level 3 |
|
|
|
| |
|
Quoted
Price ($) |
|
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
|
|
|
|
|
|
| Common Stocks ** |
|
|
69,358,454 |
|
|
— |
|
— |
|
|
69,358,454 |
|
|
|
|
|
|
| Total: |
|
|
69,358,454 |
|
|
— |
|
— |
|
|
69,358,454 |
|
|
|
|
|
|
| ** |
For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown. |
For the reporting period, there were no transfers between levels 1, 2 and 3.
See accompanying notes to
financial statements.
|
| |
| |
| Sit International Growth Fund |
|
|
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.
In this volatile equity market environment, the Sit International Growth Fund slightly
outperformed the MSCI EAFE Growth Index. The Fund declined -15.39% in the last six months of 2011, while the Index depreciated -15.80% for the same period. International equity markets declined in the last six months of 2011 as the European debt
crisis escalated and fears of a global recession mounted. In this environment, the Fund’s holdings are comprised of diversified, high-quality, and growth-oriented common stocks with a focus on companies with dominant market shares, strong sales
and earnings growth, operating margin leverage, free cash flow, and healthy balance sheets.
Similar to the first six months of
2011, energy was the top contributing sector from both a stock selection and overweight standpoint. The Fund’s holdings in the materials sector positively contributed to the relative outperformance from both a stock selection and underweight
position. The Fund’s technology and telecommunication services sectors also provided positive stock selection. Consumer staples had the most negative impact on relative performance, primarily due to the underweight position. Geographically, the
positive stock selection and overweight position led the UK to be the top contributor in the Fund. The holdings in the non-Index region of Latin America and country of Canada significantly contributed to outperformance. Conversely, while the
underweight position in Japan helped the Fund, the negative stock selection and lack of yen exposure more than offset this positive effect. Non-euro area also had negative stock selection due to a few select securities.
Given the weaker economic conditions and recession likelihood in the euro area, the Fund remains underweight in the region. However, the
Fund has a neutral to overweight position in the U.K. and other non-euro countries, as those areas are experiencing stronger growth and are less impacted by the financial crisis elsewhere on the continent. While domiciled in Europe, most of the
European holdings have exposure outside Europe rather than from within. In that context, the Fund remains diversified with exposure to emerging markets, global exporters, late-cyclical securities, and domestic-consumption stocks. Within financials,
the Fund is significantly underweight banks and diversified financials, and is market weight in the more-defensive insurance sector. European banks will remain challenged in the longer term given higher capital requirements, increased regulation,
lower loan growth, and higher costs.
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over
the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the MSCI EAFE Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 MSCI EAFE Growth Index (Europe Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that
measures the equity market performance of growth oriented developed market stocks within Europe, Australasia and the Far East. It is not possible to invest directly in an index.
In Asia, the Japanese economy
contracted in 2011, but we expect a modest turnaround in 2012. We continue to modestly increase the Japan weight in the Fund, but still significantly underweight. The focus is on domestic demand-driven stocks and export-driven stocks.
Domestic-driven stocks should benefit from reconstruction spending and export-driven stocks should benefit from our belief in a gradually weakening yen.
Given that we believe China remains the engine of growth for the region and world, the Fund is overweight Asia ex-Japan markets. The holdings are focused in the consumer-related, energy, and materials
sectors. The consumer theme remains dominant throughout the region and China continues to need energy and raw materials as they develop their infrastructure.
|
|
|
|
|
| Roger J. Sit |
|
Tasha M. Murdoff |
|
Janet K. Kinzler |
| Portfolio Managers |
|
|
|
|
|
| 32 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURNS
as of December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sit
International
Growth
Fund |
|
MSCI EAFE
Growth
Index
1 |
|
MSCI EAFE
Index 2 |
| Six Month |
|
|
|
-15.39 |
% |
|
|
|
-15.80 |
% |
|
|
|
-16.31 |
% |
| One Year |
|
|
|
-10.80 |
|
|
|
|
-12.11 |
|
|
|
|
-12.14 |
|
| Five Year |
|
|
|
-4.46 |
|
|
|
|
-3.16 |
|
|
|
|
-4.72 |
|
| Ten Year |
|
|
|
0.96 |
|
|
|
|
4.27 |
|
|
|
|
4.67 |
|
| Since Inception
(11/1/91) |
|
|
|
3.18 |
|
|
|
|
3.12 |
|
|
|
|
4.54 |
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may
have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as
reinvestment of all dividends and capital gains and all fee waivers. Without the fee waivers total return and yield figures would have been lower. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or
exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund
shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
1 MSCI EAFE Growth Index (Europe
Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of growth oriented developed market stocks within Europe, Australasia and the Far East. It is not possible to invest
directly in an index.
2 MSCI EAFE Index (Europe Australasia, Far East) is an unmanaged free float-adjusted market
capitalization index that measures the equity market performance of developed markets, excluding the US & Canada.
FUND DIVERSIFICATION - BY REGION
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sit Int’l
Growth Fund |
|
MSCI EAFE
Growth Index |
| Europe |
|
|
|
61.1 |
% |
|
|
|
61.8 |
% |
| Asia |
|
|
|
25.2 |
% |
|
|
|
37.6 |
% |
| Other |
|
|
|
10.9 |
% |
|
|
|
0.6 |
% |
| Cash & Other Net Assets |
|
|
|
2.8 |
% |
|
|
|
— |
|
Based on total net assets as of December 31, 2011. Subject to change.
PORTFOLIO SUMMARY
|
|
|
|
|
| Net Asset Value 12/31/11: |
|
$12.59 |
|
Per Share |
| Net Asset Value 6/30/11: |
|
$15.16 |
|
Per Share |
| Total Net Assets: |
|
$19.5 |
|
Million |
| Weighted Average Market Cap: |
|
$54.9 |
|
Billion |
TOP 10 HOLDINGS
1. BHP Billiton, Ltd.
2. Royal Dutch Shell, PLC, ADR
3. Nestle SA
4. Diageo, PLC, ADR
5. Reckitt Benckiser Group, PLC
6. SGS SA
7. Honda Motor Co., Ltd.
8. Pearson, PLC, ADR
9. GlaxoSmithKline, PLC, ADR
10. Syngenta AG
Based on total net assets as of December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit International Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
|
| Common Stocks - 97.2% |
|
|
|
|
| Africa/Middle East - 1.5% |
|
|
|
|
| Israel - 0.9% |
|
|
|
|
| 4,400 |
|
Teva Pharmaceutical Industries, Ltd., ADR |
|
|
177,584 |
|
|
|
|
|
|
|
|
| South Africa - 0.6% |
|
|
|
|
| 2,600 |
|
Sasol, Ltd., ADR |
|
|
123,240 |
|
|
|
|
|
|
|
|
| Asia - 25.2% |
|
|
|
|
| Australia - 7.5% |
|
|
|
|
| 10,100 |
|
Australia & New Zealand Banking Group, Ltd. |
|
|
211,543 |
|
| 20,725 |
|
BHP Billiton, Ltd. |
|
|
731,563 |
|
| 6,900 |
|
Rio Tinto, PLC, ADR |
|
|
337,548 |
|
| 1,800 |
|
Westpac Banking Corp., ADR |
|
|
184,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,464,974 |
|
|
|
|
|
|
|
|
| China/Hong Kong - 5.2% |
|
|
|
|
| 9,900 |
|
China Unicom Hong Kong, Ltd., ADR |
|
|
209,187 |
|
| 5,800 |
|
Hong Kong Exchanges & Clearing, Ltd. |
|
|
92,290 |
|
| 12,400 |
|
HSBC Holdings, PLC |
|
|
94,661 |
|
| 27,150 |
|
HSBC Holdings, PLC |
|
|
206,817 |
|
| 5,900 |
|
New Oriental Education & Tech. Group, ADR
* |
|
|
141,895 |
|
| 6,900 |
|
Standard Chartered, PLC |
|
|
150,919 |
|
| 9,600 |
|
Sun Hung Kai Properties, Ltd. |
|
|
119,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,015,739 |
|
|
|
|
|
|
|
|
| Japan - 10.3% |
|
|
|
|
| 42,000 |
|
Daicel Corp. |
|
|
255,112 |
|
| 1,300 |
|
Fanuc, Ltd. |
|
|
198,292 |
|
| 14,200 |
|
Honda Motor Co., Ltd. |
|
|
432,545 |
|
| 13,000 |
|
Kirin Holdings Co., Ltd. |
|
|
157,960 |
|
| 15,600 |
|
Komatsu, Ltd. |
|
|
363,759 |
|
| 20,000 |
|
Kubota Corp. |
|
|
167,371 |
|
| 5,400 |
|
Makita Corp. |
|
|
174,211 |
|
| 1,500 |
|
SMC Corp. |
|
|
241,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,990,579 |
|
|
|
|
|
|
|
|
| South Korea - 2.2% |
|
|
|
|
| 675 |
|
Hyundai Mobis * |
|
|
171,499 |
|
| 550 |
|
Samsung Electronics Co., Ltd., GDR |
|
|
252,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
424,060 |
|
|
|
|
|
|
|
|
| Europe - 61.1% |
|
|
|
|
| France - 6.8% |
|
|
|
|
| 4,650 |
|
BNP Paribas |
|
|
181,068 |
|
| 3,775 |
|
Dassault Systemes SA |
|
|
301,556 |
|
| 8,270 |
|
Ingenico |
|
|
297,923 |
|
| 3,550 |
|
Schlumberger, Ltd. |
|
|
242,500 |
|
| 6,000 |
|
Total SA |
|
|
306,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,329,214 |
|
|
|
|
|
|
|
|
| Germany - 6.5% |
|
|
|
|
| 3,660 |
|
Adidas AG |
|
|
237,801 |
|
| 2,550 |
|
Allianz SE |
|
|
243,535 |
|
| 2,500 |
|
Muenchener Rueckver |
|
|
306,356 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 715 |
|
Rational AG |
|
|
155,139 |
|
| 3,265 |
|
Siemens AG |
|
|
312,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,255,212 |
|
|
|
|
|
|
|
|
| Ireland - 1.5% |
|
|
|
|
| 6,400 |
|
Covidien, PLC |
|
|
288,064 |
|
|
|
|
|
|
|
|
| Italy - 1.8% |
|
|
|
|
| 59,700 |
|
Enel SPA |
|
|
242,187 |
|
| 2,800 |
|
Tenaris SA, ADR |
|
|
104,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
346,291 |
|
|
|
|
|
|
|
|
| Netherlands - 2.0% |
|
|
|
|
| 5,100 |
|
ASML Holding NV |
|
|
213,129 |
|
| 25,800 |
|
ING Groep NV * |
|
|
184,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
397,640 |
|
|
|
|
|
|
|
|
| Norway - 1.3% |
|
|
|
|
| 7,700 |
|
Seadrill, Ltd. |
|
|
255,486 |
|
| Spain - 3.2% |
|
|
|
|
| 33,700 |
|
Banco Bilbao Vizcaya Argentaria SA, ADR |
|
|
288,809 |
|
| 4,050 |
|
Inditex SA |
|
|
330,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
619,430 |
|
|
|
|
|
|
|
|
| Sweden - 2.1% |
|
|
|
|
| 3,900 |
|
Autoliv, Inc. |
|
|
208,611 |
|
| 1,950 |
|
Millicom International Cellular SA, SDR |
|
|
194,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
403,416 |
|
|
|
|
|
|
|
|
| Switzerland - 13.3% |
|
|
|
|
| 5,500 |
|
ABB, Ltd., ADR * |
|
|
103,565 |
|
| 1,800 |
|
Kuehne & Nagel International |
|
|
201,562 |
|
| 10,780 |
|
Nestle SA |
|
|
619,026 |
|
| 4,500 |
|
Novartis AG |
|
|
256,919 |
|
| 1,629 |
|
Roche Holding AG |
|
|
275,494 |
|
| 286 |
|
SGS SA |
|
|
471,712 |
|
| 2,300 |
|
Sulzer AG |
|
|
244,918 |
|
| 1,410 |
|
Syngenta AG * |
|
|
414,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,587,525 |
|
|
|
|
|
|
|
|
| United Kingdom - 22.6% |
|
|
|
|
| 2,600 |
|
Anglo American, PLC |
|
|
96,044 |
|
| 8,700 |
|
British American Tobacco, PLC |
|
|
412,728 |
|
| 13,000 |
|
Burberry Group, PLC |
|
|
239,037 |
|
| 86,700 |
|
Centrica, PLC |
|
|
389,410 |
|
| 6,700 |
|
Diageo, PLC, ADR |
|
|
585,714 |
|
| 9,300 |
|
GlaxoSmithKline, PLC, ADR |
|
|
424,359 |
|
| 22,800 |
|
Pearson, PLC, ADR |
|
|
430,236 |
|
| 10,000 |
|
Reckitt Benckiser Group, PLC |
|
|
493,196 |
|
| 9,550 |
|
Royal Dutch Shell, PLC, ADR |
|
|
725,896 |
|
| 45,100 |
|
Tesco, PLC |
|
|
282,181 |
|
| 117,400 |
|
Vodafone Group, PLC |
|
|
327,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,406,122 |
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
|
|
|
| 34 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit International Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Latin America - 3.6% |
|
|
|
|
| Argentina - 0.7% |
|
|
|
|
| 1,650 |
|
MercadoLibre, Inc. |
|
|
131,241 |
|
|
|
|
|
|
|
|
| Brazil - 1.5% |
|
|
|
|
| 4,700 |
|
AGCO Corp. * |
|
|
201,959 |
|
| 3,700 |
|
Petrobras, ADR |
|
|
91,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
293,904 |
|
|
|
|
|
|
|
|
| Mexico - 0.6% |
|
|
|
|
| 44,620 |
|
Wal-Mart de Mexico |
|
|
122,464 |
|
|
|
|
|
|
|
|
| Peru - 0.8% |
|
|
|
|
| 4,800 |
|
Southern Copper Corp. |
|
|
144,864 |
|
|
|
|
|
|
|
|
| North America - 5.8% |
|
|
|
|
| Bermuda - 1.7% |
|
|
|
|
| 5,275 |
|
PartnerRe, Ltd. |
|
|
338,708 |
|
|
|
|
|
|
|
|
| Canada - 4.1% |
|
|
|
|
| 2,600 |
|
Canadian National Railway Co. |
|
|
204,256 |
|
| 2,900 |
|
Lululemon Athletica, Inc. * |
|
|
135,314 |
|
| 7,000 |
|
Rogers Communications, Inc. |
|
|
269,570 |
|
| 3,800 |
|
Royal Bank of Canada |
|
|
193,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
802,788 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $17,196,273) |
|
|
18,918,545 |
|
|
|
|
|
|
|
|
| Total Investments in Securities - 97.2%
(cost:
$17,196,273) |
|
|
18,918,545 |
|
| Other Assets and Liabilities, net - 2.8% |
|
|
544,607 |
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
19,463,152 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
PLC — Public Limited Company
SDR — Swedish Depositary Receipt
See accompanying notes to
financial statements.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit International Growth Fund (Continued) |
A summary of the inputs used to value the Fund’s net assets as of December 31,
2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Investment in Securities |
|
|
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted
Price ($) |
|
Other significant
observable inputs ($) |
|
Significant
unobservable inputs ($) |
|
Total ($) |
| Common Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Argentina |
|
|
|
131,241 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
131,241 |
|
| Australia |
|
|
|
521,868 |
|
|
|
|
943,106 |
|
|
|
|
— |
|
|
|
|
1,464,974 |
|
| Bermuda |
|
|
|
338,708 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
338,708 |
|
| Brazil |
|
|
|
293,904 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
293,904 |
|
| Canada |
|
|
|
802,788 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
802,788 |
|
| China/Hong Kong |
|
|
|
351,082 |
|
|
|
|
664,657 |
|
|
|
|
— |
|
|
|
|
1,015,739 |
|
| France |
|
|
|
242,500 |
|
|
|
|
1,086,714 |
|
|
|
|
— |
|
|
|
|
1,329,214 |
|
| Germany |
|
|
|
— |
|
|
|
|
1,255,212 |
|
|
|
|
— |
|
|
|
|
1,255,212 |
|
| Ireland |
|
|
|
288,064 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
288,064 |
|
| Israel |
|
|
|
177,584 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
177,584 |
|
| Italy |
|
|
|
104,104 |
|
|
|
|
242,187 |
|
|
|
|
— |
|
|
|
|
346,291 |
|
| Japan |
|
|
|
167,371 |
|
|
|
|
1,823,208 |
|
|
|
|
— |
|
|
|
|
1,990,579 |
|
| Mexico |
|
|
|
122,464 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
122,464 |
|
| Netherlands |
|
|
|
213,129 |
|
|
|
|
184,511 |
|
|
|
|
— |
|
|
|
|
397,640 |
|
| Norway |
|
|
|
255,486 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
255,486 |
|
| Peru |
|
|
|
144,864 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
144,864 |
|
| South Africa |
|
|
|
123,240 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
123,240 |
|
| South Korea |
|
|
|
252,561 |
|
|
|
|
171,499 |
|
|
|
|
— |
|
|
|
|
424,060 |
|
| Spain |
|
|
|
288,809 |
|
|
|
|
330,621 |
|
|
|
|
— |
|
|
|
|
619,430 |
|
| Sweden |
|
|
|
208,611 |
|
|
|
|
194,805 |
|
|
|
|
— |
|
|
|
|
403,416 |
|
| Switzerland |
|
|
|
103,565 |
|
|
|
|
2,483,960 |
|
|
|
|
— |
|
|
|
|
2,587,525 |
|
| United Kingdom |
|
|
|
2,166,205 |
|
|
|
|
2,239,917 |
|
|
|
|
— |
|
|
|
|
4,406,122 |
|
| Total: |
|
|
|
7,298,148 |
|
|
|
|
11,620,397 |
|
|
|
|
— |
|
|
|
|
18,918,545 |
|
The Fund adjusts the closing price of foreign equity securities by applying a systematic process for
events occurring after the close of the foreign exchange. At each reporting period, this process is applied for all foreign securities and therefore all foreign securities are classified as level 2. There are no transfers between level 1 and level 2
between reporting periods as a result of applying this process. Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the
reporting period.
See accompanying notes to
financial statements.
|
|
|
| 36 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
[This
page intentionally left blank.]
|
| |
| |
| 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.
Even though sentiment turned negative on emerging market stocks in the second of 2011, the
Sit Developing Markets Growth Fund outperformed the MSCI Emerging Markets Index. The Fund declined -16.90% in the last six months of 2011 versus the Index fall of -20.05%. Emerging equity markets continued to underperform developed equity markets in
the second half of 2011 as investors became more risk averse. As such, valuations have become much more attractive as the markets have sold off. We believe revenue and earnings growth should support the valuations. In this volatile trading
environment, stock picking is critical. We believe that the focus on high-quality growth companies with strong and experienced management teams, sound balance sheets, good cash flow generation, and sustainable earnings and revenue growth, will be
key elements to successful stock picks.
The outperformance was led by the consumer discretionary holdings in Latin America and
Asia ex-Japan. The consumer discretionary sector includes the automobiles & components, consumer durables & apparel, media, and retailing industries. In addition, the industrial sector positively contributed to relative performance
given the underweight stance and good stock selection. Conversely, the technology stocks negatively impacted performance, primarily due to less than stellar stock selection. Regionally, the stocks in the Africa/ Middle East region took away from
relative performance – a result of the Fund’s underweight position in a region that performed better than the overall Index.
We continue to believe that China will remain the engine of growth for the region and world. The Fund is overweight Asia ex-Japan markets with a bias for China and Hong Kong securities. The holdings are
focused in the consumer-related, energy, and materials sectors. The consumer theme remains dominant throughout the region as the young and middle class population grows and demands more western-style products and services. As China’s shift to a
consumption/ consumer-driven economy comes to fruition, consumer-related stocks should perform well. As China’s consumer matures, so will the demand for better infrastructure. Therefore, China’s need for energy and raw materials should
continue to escalate.
The Fund remains overweight Latin American securities. Similar to Asia, the holdings are concentrated in
the consumer, energy, industrial, and material sectors. The young population continues to grow and is leading to increased spending on goods to upgrade lifestyles.
HYPOTHETICAL GROWTH OF $10,000
The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over
the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the MSCI Emerging Markets Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not
reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
1 MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity market
performance of emerging markets. It is not possible to invest directly in an index.
As more consumers graduate to the
middle class, the need for more consumer goods and services should rise. Additionally, the strong raw material and energy demand from the rest of the world, along with internal demand, should support economic expansion in Latin America.
Elsewhere, in the emerging regions of Europe, Africa, and the Middle East, the Fund remains underweight. We believe prospects of growth
outside of the aforementioned regions remains a much more compelling investment case. However, within the above regions, the exposure is centered on consumer and resource-related investments. These include telecommunication, media, energy, and
technology companies.
Roger J. Sit
Raymond E. Sit
Portfolio Managers
|
|
|
| 38 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
COMPARATIVE RATES OF RETURN
|
|
|
|
|
|
|
| as of December 31, 2011 |
|
|
|
|
|
|
| |
|
Sit
Developing
Markets
Growth
Fund |
|
MSCI
Emerging
Markets
Index 1 |
|
MSCI
Emerging
Markets
Growth
Index 2 |
| Six Month |
|
-16.90% |
|
-20.05% |
|
-20.70% |
| One Year |
|
-18.48 |
|
-20.41 |
|
-20.73 |
| Five Year |
|
0.45 |
|
0.08 |
|
-1.36 |
| Ten Year |
|
9.59 |
|
11.19 |
|
9.67 |
| Since Inception |
|
4.59 |
|
3.77 |
|
n/a |
| (7/1/94) |
|
|
|
|
|
|
Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may
be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not
reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual
rates of return.
1 MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity
market performance of emerging markets. It is not possible to invest directly in an index.
2 MSCI Emerging Markets Growth Index is an
unmanaged free float-adjusted market capitalization index that measures equity market performance of growth oriented emerging market stocks.
FUND DIVERSIFICATION - BY REGION
|
|
|
|
|
| |
|
Sit Developing
Markets
Growth
Fund |
|
MSCI
Emerging
Markets
Index |
| Asia |
|
55.2% |
|
59.2% |
| Latin America |
|
32.9% |
|
23.0% |
| Europe |
|
7.5% |
|
9.5% |
| Africa/Middle East |
|
3.0% |
|
8.3% |
| Cash & Other Net Assets |
|
1.4% |
|
— |
Based on total net assets as of December 31, 2011. Subject to change.
PORTFOLIO SUMMARY
|
|
|
| Net Asset Value 12/31/11: |
|
$17.57 Per Share |
| Net Asset Value 6/30/11: |
|
$23.24 Per Share |
| Total Net Assets: |
|
$11.1 Million |
| Weighted Average Market Cap: |
|
$34.8 Billion |
TOP 10 HOLDINGS
1. Samsung Electronics
Co., Ltd.
2. Cia de Bebidas das Americas, ADR
3. Vale SA, ADR
4. BHP Billiton, Ltd., ADR
5. Petrobras
6. Banco Bradesco SA
7. CNOOC, Ltd., ADR
8. Southern Copper Corp.
9. Bangkok Bank PCL
10. Shinhan Financial Group Co., Ltd.
Based on total net assets as of
December 31, 2011. Subject to change.
FUND DIVERSIFICATION
Based on total net assets as of December 31, 2011. Subject to change.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Developing Markets Growth Fund |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| Common
Stocks - 97.8% |
|
|
|
|
| Africa/Middle East - 7.5% |
|
|
|
|
| Israel - 0.8% |
|
|
|
|
| 2,500 |
|
NICE Systems, Ltd., ADR * |
|
|
86,125 |
|
|
|
|
|
|
|
|
| South Africa - 6.7% |
|
|
|
|
| 7,325 |
|
Bidvest Group, Ltd. |
|
|
140,302 |
|
| 9,800 |
|
MTN Group, Ltd. |
|
|
174,119 |
|
| 4,450 |
|
Naspers, Ltd. |
|
|
194,383 |
|
| 5,000 |
|
Sasol, Ltd., ADR |
|
|
237,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
745,804 |
|
|
|
|
|
|
|
|
| Asia - 54.4% |
|
|
|
|
| Australia - 5.8% |
|
|
|
|
| 5,900 |
|
BHP Billiton, Ltd., ADR |
|
|
416,717 |
|
| 3,600 |
|
Rio Tinto, Ltd. |
|
|
221,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
638,654 |
|
|
|
|
|
|
|
|
| China/Hong Kong - 21.2% |
|
|
|
|
| 108,000 |
|
Belle International Holdings, Ltd. |
|
|
187,625 |
|
| 33,000 |
|
China Mengniu Dairy Co., Ltd. |
|
|
77,072 |
|
| 78,000 |
|
China Oilfield Services, Ltd. |
|
|
122,659 |
|
| 49,500 |
|
China Shenhua Energy Co., Ltd. |
|
|
214,051 |
|
| 9,300 |
|
China Unicom Hong Kong, Ltd., ADR |
|
|
196,509 |
|
| 1,800 |
|
CNOOC, Ltd., ADR |
|
|
314,424 |
|
| 124,000 |
|
Daphne International Holdings, Ltd. |
|
|
137,747 |
|
| 52,000 |
|
ENN Energy Holdings, Ltd. |
|
|
166,480 |
|
| 20,500 |
|
Hengan International Group Co., Ltd. |
|
|
191,127 |
|
| 2,600 |
|
Home Inns & Hotels Management, Inc., ADR
* |
|
|
67,080 |
|
| 5,000 |
|
Hong Kong Exchanges & Clearing, Ltd. |
|
|
79,560 |
|
| 7,100 |
|
New Oriental Education & Tech. Group, ADR
* |
|
|
170,755 |
|
| 72,000 |
|
PetroChina Co., Ltd. |
|
|
89,412 |
|
| 7,100 |
|
Tencent Holdings, Ltd. |
|
|
142,166 |
|
| 172,000 |
|
Travelsky Technology, Ltd. |
|
|
89,222 |
|
| 104,000 |
|
Want Want China Holdings, Ltd. |
|
|
103,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,349,481 |
|
|
|
|
|
|
|
|
| India ** -
3.6% |
|
|
|
|
| 5,900 |
|
ICICI Bank, Ltd., ADR |
|
|
155,937 |
|
| 2,650 |
|
Infosys Technologies, Ltd., ADR |
|
|
136,157 |
|
| 4,000 |
|
Reliance Industries, Ltd., GDR 4 |
|
|
104,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
396,484 |
|
|
|
|
|
|
|
|
| Indonesia - 2.0% |
|
|
|
|
| 27,500 |
|
Astra International Tbk PT |
|
|
224,100 |
|
|
|
|
|
|
|
|
| Philippines - 1.5% |
|
|
|
|
| 386,000 |
|
Manila Water Co., Inc. |
|
|
170,923 |
|
|
|
|
|
|
|
|
| Singapore - 0.5% |
|
|
|
|
| 6,000 |
|
DBS Group Holdings, Ltd. |
|
|
53,258 |
|
|
|
|
|
|
|
|
| South Korea - 13.2% |
|
|
|
|
| 14,045 |
|
Cheil Worldwide, Inc. * |
|
|
231,263 |
|
| 610 |
|
E-Mart Co., Ltd. * |
|
|
147,504 |
|
| 800 |
|
Hyundai Mobis * |
|
|
203,258 |
|
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
| 9,007 |
|
Industrial Bank of Korea, GDR *, 4 |
|
|
97,732 |
|
| 1,100 |
|
POSCO, ADR |
|
|
90,310 |
|
| 485 |
|
Samsung Electronics Co., Ltd. |
|
|
446,121 |
|
| 7,000 |
|
Shinhan Financial Group Co., Ltd. * |
|
|
242,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,458,250 |
|
|
|
|
|
|
|
|
| Taiwan - 4.3% |
|
|
|
|
| 56,053 |
|
Cathay Financial Holding Co., Ltd. |
|
|
60,430 |
|
| 21,100 |
|
Hon Hai Precision Industry Co., Ltd., GDR |
|
|
115,902 |
|
| 5,899 |
|
HTC Corp. |
|
|
96,689 |
|
| 81,482 |
|
Taiwan Semiconductor Co. |
|
|
203,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
476,612 |
|
|
|
|
|
|
|
|
| Thailand - 2.3% |
|
|
|
|
| 49,100 |
|
Bangkok Bank PCL |
|
|
254,852 |
|
|
|
|
|
|
|
|
| Europe - 3.0% |
|
|
|
|
| Russia - 1.8% |
|
|
|
|
| 18,500 |
|
Gazprom OAO, ADR |
|
|
197,599 |
|
|
|
|
|
|
|
|
| Sweden - 1.2% |
|
|
|
|
| 1,400 |
|
Millicom International Cellular SA, SDR |
|
|
139,860 |
|
|
|
|
|
|
|
|
| Latin America - 32.9% |
|
|
|
|
| Argentina - 0.8% |
|
|
|
|
| 1,100 |
|
MercadoLibre, Inc. |
|
|
87,494 |
|
|
|
|
|
|
|
|
| Brazil - 22.9% |
|
|
|
|
| 7,800 |
|
AES Tiete SA |
|
|
112,405 |
|
| 4,550 |
|
AGCO Corp. * |
|
|
195,514 |
|
| 7,500 |
|
Arcos Dorados Holdings, Inc. |
|
|
153,975 |
|
| 19,877 |
|
Banco Bradesco SA |
|
|
327,687 |
|
| 4,200 |
|
Cia Brasileira de Distribuicao Grupo Pao de |
|
|
|
|
|
|
Acucar, ADR |
|
|
153,006 |
|
| 11,900 |
|
Cia de Bebidas das Americas, ADR |
|
|
429,471 |
|
| 6,983 |
|
Embraer SA, ADR |
|
|
176,111 |
|
| 31,000 |
|
Petrobras |
|
|
357,159 |
|
| 7,500 |
|
Telefonica Brasil SA, ADR |
|
|
204,975 |
|
| 20,000 |
|
Vale SA, ADR |
|
|
429,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,539,303 |
|
|
|
|
|
|
|
|
| Chile - 1.9% |
|
|
|
|
| 2,700 |
|
Banco Santander Chile, ADR |
|
|
204,390 |
|
|
|
|
|
|
|
|
| Mexico - 4.6% |
|
|
|
|
| 9,500 |
|
America Movil SAB de CV, ADR |
|
|
214,700 |
|
| 3,000 |
|
Grupo Televisa SA, ADR |
|
|
63,180 |
|
| 84,100 |
|
Wal-Mart de Mexico |
|
|
230,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
508,700 |
|
|
|
|
|
|
|
|
| Peru - 2.7% |
|
|
|
|
| 10,000 |
|
Southern Copper Corp. |
|
|
301,800 |
|
|
|
|
|
|
|
|
| Total Common Stocks
(cost: $7,526,312) |
|
|
10,833,689 |
|
|
|
|
|
|
|
|
See accompanying notes to
financial statements.
|
|
|
| 40 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Developing Markets Growth Fund (Continued) |
|
|
|
|
|
|
|
| |
|
|
| Quantity |
|
Name of Issuer |
|
Fair Value ($) |
|
|
Exchange-Traded Funds - 0.8% |
|
| 16,300 |
|
iShares MSCI India *, ** |
|
|
|
|
| Total Exchange-Traded Funds
(cost: $71,238) |
|
|
82,478 |
|
|
|
|
|
|
|
|
| Total Investments in Securities - 98.6%
(cost: $7,597,550) |
|
|
10,916,167 |
|
| Other Assets and Liabilities, net - 1.4% |
|
|
160,274 |
|
|
|
|
|
|
|
|
|
|
| Total Net Assets - 100.0% |
|
$ |
11,076,441 |
|
|
|
|
|
|
|
|
| * |
Non-income producing security. |
| ** |
The Fund’s total investment in India including the iShares comprises
4.4% of the Fund’s net assets. |
| 4 |
144A Restricted Security. The total value of such securities as of
December 31, 2011 was $202,122 and represented 1.8% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. |
Numeric footnotes not disclosed are not applicable to this Schedule of Investments.
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
SDR — Swedish Depositary Receipt
See accompanying notes to
financial statements.
|
| |
| SCHEDULE OF INVESTMENTS (Unaudited) |
| December 31, 2011 |
|
| Sit Developing Markets Growth Fund (Continued) |
A summary of the inputs used to value the Fund’s net assets as of December 31,
2011 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Investment in Securities |
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
| |
|
Quoted |
|
Other significant |
|
Significant |
|
|
| |
|
Price ($) |
|
observable inputs ($) |
|
unobservable inputs ($) |
|
Total ($) |
|
|
|
|
|
|
| Common Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Argentina |
|
|
|
87,494 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
87,494 |
|
| Australia |
|
|
|
416,717 |
|
|
|
|
221,937 |
|
|
|
|
— |
|
|
|
|
638,654 |
|
| Brazil |
|
|
|
2,539,303 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
2,539,303 |
|
| Chile |
|
|
|
204,390 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
204,390 |
|
| China/Hong Kong |
|
|
|
748,768 |
|
|
|
|
1,600,713 |
|
|
|
|
— |
|
|
|
|
2,349,481 |
|
| India |
|
|
|
396,484 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
396,484 |
|
| Indonesia |
|
|
|
— |
|
|
|
|
224,100 |
|
|
|
|
— |
|
|
|
|
224,100 |
|
| Israel |
|
|
|
86,125 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
86,125 |
|
| Mexico |
|
|
|
508,700 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
508,700 |
|
| Peru |
|
|
|
301,800 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
301,800 |
|
| Philippines |
|
|
|
— |
|
|
|
|
170,923 |
|
|
|
|
— |
|
|
|
|
170,923 |
|
| Russia |
|
|
|
197,599 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
197,599 |
|
| Singapore |
|
|
|
— |
|
|
|
|
53,258 |
|
|
|
|
— |
|
|
|
|
53,258 |
|
| South Africa |
|
|
|
237,000 |
|
|
|
|
508,804 |
|
|
|
|
— |
|
|
|
|
745,804 |
|
| South Korea |
|
|
|
335,546 |
|
|
|
|
1,122,704 |
|
|
|
|
— |
|
|
|
|
1,458,250 |
|
| Sweden |
|
|
|
— |
|
|
|
|
139,860 |
|
|
|
|
— |
|
|
|
|
139,860 |
|
| Taiwan |
|
|
|
— |
|
|
|
|
476,612 |
|
|
|
|
— |
|
|
|
|
476,612 |
|
| Thailand |
|
|
|
— |
|
|
|
|
254,852 |
|
|
|
|
— |
|
|
|
|
254,852 |
|
|
|
|
|
|
|
|
|
|
|
6,059,926 |
|
|
|
|
4,773,763 |
|
|
|
|
— |
|
|
|
|
10,833,689 |
|
|
|
|
|
|
|
| Exchange-Traded Funds |
|
|
|
82,478 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
82,478 |
|
|
|
|
|
|
|
| Total: |
|
|
|
6,142,404 |
|
|
|
|
4,773,763 |
|
|
|
|
— |
|
|
|
|
10,916,167 |
|
|
|
|
|
|
|
The Fund adjusts the closing price of foreign equity securities by applying a systematic process for
events occurring after the close of the foreign exchange. At each reporting period, this process is applied for all foreign securities and therefore all foreign securities are classified as level 2. There are no transfers between level 1 and level 2
between reporting periods as a result of applying this process. Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the
reporting period.
See accompanying notes to
financial statements.
|
|
|
| 42 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
[This
page intentionally left blank.]
|
| |
| STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) |
| December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Sit |
|
| |
|
|
|
|
|
|
Sit |
|
|
|
|
Global |
|
| |
|
Sit |
|
|
|
|
Dividend |
|
|
|
|
Dividend |
|
| |
|
Balanced |
|
|
|
|
Growth |
|
|
|
|
Growth |
|
| |
|
Fund |
|
|
|
|
Fund |
|
|
|
|
Fund |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities, at identified cost |
|
|
$8,703,796 |
|
|
|
|
|
$434,260,991 |
|
|
|
|
|
$8,942,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in securities, at fair value - see accompanying schedule for detail |
|
|
$10,140,509 |
|
|
|
|
|
$449,369,618 |
|
|
|
|
|
$9,353,947 |
|
| Cash in bank on demand deposit |
|
|
536,946 |
|
|
|
|
|
14,596,968 |
|
|
|
|
|
108,531 |
|
| Accrued interest and dividends receivable. |
|
|
42,629 |
|
|
|
|
|
745,953 |
|
|
|
|
|
18,195 |
|
| Receivable for investment securities sold |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| Other receivables (note 5) |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
| Receivable for Fund shares sold |
|
|
2,594 |
|
|
|
|
|
9,487,355 |
|
|
|
|
|
291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
10,722,678 |
|
|
|
|
|
474,199,894 |
|
|
|
|
|
9,480,964 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for investment securities purchased |
|
|
— |
|
|
|
|
|
8,658,115 |
|
|
|
|
|
— |
|
| Payable for Fund shares redeemed. |
|
|
366 |
|
|
|
|
|
314,863 |
|
|
|
|
|
— |
|
| Cash portion of dividends payable to shareholders |
|
|
— |
|
|
|
|
|
88 |
|
|
|
|
|
2,333 |
|
| Accrued investment management fees and advisory fees |
|
|
9,198 |
|
|
|
|
|
362,406 |
|
|
|
|
|
9,421 |
|
| Accrued 12b-1 fees (Class S) |
|
|
— |
|
|
|
|
|
26,675 |
|
|
|
|
|
854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
9,564 |
|
|
|
|
|
9,362,147 |
|
|
|
|
|
12,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets applicable to outstanding capital stock |
|
|
$10,713,114 |
|
|
|
|
|
$464,837,747 |
|
|
|
|
|
$9,468,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital (par value and paid-in surplus) |
|
|
$10,941,351 |
|
|
|
|
|
$447,863,688 |
|
|
|
|
|
$9,024,591 |
|
| Undistributed (distributions in excess of) net investment income |
|
|
1,311 |
|
|
|
|
|
115,829 |
|
|
|
|
|
1,201 |
|
| Accumulated net realized gain (loss) from security transactions and foreign currency transactions |
|
|
(1,666,261 |
) |
|
|
|
|
1,749,603 |
|
|
|
|
|
31,142 |
|
| Unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
|
1,436,713 |
|
|
|
|
|
15,108,627 |
|
|
|
|
|
411,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$10,713,114 |
|
|
|
|
|
$464,837,747 |
|
|
|
|
|
$9,468,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class I) * |
|
|
668,797 |
|
|
|
|
|
29,571,908 |
|
|
|
|
|
628,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class S) * |
|
|
— |
|
|
|
|
|
5,681,216 |
|
|
|
|
|
165,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets applicable to outstanding shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class I) * |
|
|
$10,713,114 |
|
|
|
|
|
$390,071,325 |
|
|
|
|
|
$7,496,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class S) * |
|
|
— |
|
|
|
|
|
74,766,422 |
|
|
|
|
|
1,971,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net asset value per share of outstanding capital stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class I) * |
|
|
$16.02 |
|
|
|
|
|
$13.19 |
|
|
|
|
|
$11.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Shares (Class S) * |
|
|
— |
|
|
|
|
|
$13.16 |
|
|
|
|
|
$11.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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 SEMI-ANNUAL REPORT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sit |
|
|
|
| Sit |
|
|
|
|
Sit |
|
|
|
|
Sit |
|
|
|
|
Sit |
|
|
|
|
Developing |
|
|
| Large Cap |
|
|
|
|
Mid Cap |
|
|
|
|
Small Cap |
|
|
|
|
International |
|
|
|
|
Markets |
|
|
| Growth |
|
|
|
|
Growth |
|
|
|
|
Growth |
|
|
|
|
Growth |
|
|
|
|
Growth |
|
|
| Fund |
|
|
|
|
Fund |
|
|
|
|
Fund |
|
|
|
|
Fund |
|
|
|
|
Fund |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$222,814,190 |
|
|
|
|
|
$105,546,287 |
|
|
|
|
|
$57,972,332 |
|
|
|
|
|
$17,196,273 |
|
|
|
|
|
$7,597,550 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$270,140,131 |
|
|
|
|
|
$134,634,558 |
|
|
|
|
|
$69,358,454 |
|
|
|
|
|
$18,918,545 |
|
|
|
|
|
$10,916,167 |
|
|
| |
3,460,369 |
|
|
|
|
|
2,420,527 |
|
|
|
|
|
455,760 |
|
|
|
|
|
238,928 |
|
|
|
|
|
144,279 |
|
|
| |
332,160 |
|
|
|
|
|
108,544 |
|
|
|
|
|
40,048 |
|
|
|
|
|
59,980 |
|
|
|
|
|
8,794 |
|
|
| |
713,286 |
|
|
|
|
|
525,946 |
|
|
|
|
|
727,995 |
|
|
|
|
|
43,367 |
|
|
|
|
|
24,962 |
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
275,505 |
|
|
|
|
|
— |
|
|
| |
96,758 |
|
|
|
|
|
4,015 |
|
|
|
|
|
2,363 |
|
|
|
|
|
3,153 |
|
|
|
|
|
2,369 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
274,742,704 |
|
|
|
|
|
137,693,590 |
|
|
|
|
|
70,584,620 |
|
|
|
|
|
19,539,478 |
|
|
|
|
|
11,096,571 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
— |
|
|
|
|
|
313,622 |
|
|
|
|
|
152,463 |
|
|
|
|
|
45,822 |
|
|
|
|
|
— |
|
|
| |
600,765 |
|
|
|
|
|
137,176 |
|
|
|
|
|
20,335 |
|
|
|
|
|
607 |
|
|
|
|
|
512 |
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
2 |
|
|
|
|
|
— |
|
|
| |
245,328 |
|
|
|
|
|
154,683 |
|
|
|
|
|
89,827 |
|
|
|
|
|
29,895 |
|
|
|
|
|
19,618 |
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
846,093 |
|
|
|
|
|
605,481 |
|
|
|
|
|
262,625 |
|
|
|
|
|
76,326 |
|
|
|
|
|
20,130 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$273,896,611 |
|
|
|
|
|
$137,088,109 |
|
|
|
|
|
$70,321,995 |
|
|
|
|
|
$19,463,152 |
|
|
|
|
|
$11,076,441 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$239,953,983 |
|
|
|
|
|
$109,811,482 |
|
|
|
|
|
$66,127,021 |
|
|
|
|
|
$27,477,621 |
|
|
|
|
|
$7,509,766 |
|
|
| |
2,848 |
|
|
|
|
|
(252,485 |
) |
|
|
|
|
(326,322 |
) |
|
|
|
|
(4,315 |
) |
|
|
|
|
3,627 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(13,386,161) |
|
|
|
|
|
(1,559,159 |
) |
|
|
|
|
(6,864,826 |
) |
|
|
|
|
(9,730,428 |
) |
|
|
|
|
244,582 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
47,325,941 |
|
|
|
|
|
29,088,271 |
|
|
|
|
|
11,386,122 |
|
|
|
|
|
1,720,274 |
|
|
|
|
|
3,318,466 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$273,896,611 |
|
|
|
|
|
$137,088,109 |
|
|
|
|
|
$70,321,995 |
|
|
|
|
|
$19,463,152 |
|
|
|
|
|
$11,076,441 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
6,568,656 |
|
|
|
|
|
9,771,458 |
|
|
|
|
|
1,771,086 |
|
|
|
|
|
1,545,962 |
|
|
|
|
|
630,438 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$273,896,611 |
|
|
|
|
|
$137,088,109 |
|
|
|
|
|
$70,321,995 |
|
|
|
|
|
$19,463,152 |
|
|
|
|
|
$11,076,441 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$41.70 |
|
|
|
|
|
$14.03 |
|
|
|
|
|
$39.71 |
|
|
|
|
|
$12.59 |
|
|
|
|
|
$17.57 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| STATEMENTS OF OPERATIONS (Unaudited) |
| Six Months Ended December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Sit |
|
| |
|
|
|
|
Sit |
|
|
Global |
|
| |
|
Sit |
|
|
Dividend |
|
|
Dividend |
|
| |
|
Balanced |
|
|
Growth |
|
|
Growth |
|
| |
|
Fund |
|
|
Fund |
|
|
Fund |
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends* |
|
|
$65,106 |
|
|
|
$5,826,755 |
|
|
|
$132,952 |
|
| Interest |
|
|
89,522 |
|
|
|
65 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total income. |
|
|
154,628 |
|
|
|
5,826,820 |
|
|
|
132,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (note 4): |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment management and advisory service fee. |
|
|
53,876 |
|
|
|
2,027,336 |
|
|
|
56,958 |
|
| 12b-1 fees (Class S) |
|
|
— |
|
|
|
78,157 |
|
|
|
2,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total expenses |
|
|
53,876 |
|
|
|
2,105,493 |
|
|
|
59,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
100,752 |
|
|
|
3,721,327 |
|
|
|
73,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Realized and unrealized gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized gain (loss) on investments |
|
|
142,575 |
|
|
|
4,892,299 |
|
|
|
32,929 |
|
| Net realized gain (loss) on foreign currency transactions |
|
|
— |
|
|
|
— |
|
|
|
297 |
|
|
|
|
|
| Net change in unrealized appreciation (depreciation) on investments
and foreign currency transactions |
|
|
(421,470 |
) |
|
|
(17,789,078 |
) |
|
|
(807,901 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investments |
|
|
(278,895 |
) |
|
|
(12,896,779 |
) |
|
|
(774,675 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
|
|
($178,143 |
) |
|
|
($9,175,452 |
) |
|
|
($700,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Foreign taxes withheld on dividends received |
|
|
$238 |
|
|
|
$22,845 |
|
|
|
$3,737 |
|
See accompanying notes to
financial statements.
|
|
|
| 46 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Sit |
|
|
|
| Sit |
|
|
Sit |
|
|
Sit |
|
|
Sit |
|
|
Developing |
|
|
|
| Large Cap |
|
|
Mid Cap |
|
|
Small Cap |
|
|
International |
|
|
Markets |
|
|
|
| Growth |
|
|
Growth |
|
|
Growth |
|
|
Growth |
|
|
Growth |
|
|
|
| Fund |
|
|
Fund |
|
|
Fund |
|
|
Fund |
|
|
Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$2,504,658 |
|
|
|
$651,686 |
|
|
|
$254,415 |
|
|
|
$256,860 |
|
|
|
$141,403 |
|
|
|
| |
26 |
|
|
|
20 |
|
|
|
8 |
|
|
|
1 |
|
|
|
1 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2,504,684 |
|
|
|
651,706 |
|
|
|
254,423 |
|
|
|
256,861 |
|
|
|
141,404 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,537,725 |
|
|
|
904,191 |
|
|
|
580,745 |
|
|
|
162,059 |
|
|
|
129,843 |
|
|
|
| |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,537,725 |
|
|
|
904,191 |
|
|
|
580,745 |
|
|
|
162,059 |
|
|
|
129,843 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
966,959 |
|
|
|
(252,485 |
) |
|
|
(326,322 |
) |
|
|
94,802 |
|
|
|
11,561 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
16,601,966 |
|
|
|
2,242,419 |
|
|
|
5,386,444 |
|
|
|
(30,295 |
) |
|
|
271,285 |
|
|
|
| |
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,882 |
|
|
|
(2,245 |
) |
|
|
|
|
|
|
|
|
| |
(34,263,452 |
) |
|
|
(20,984,023 |
) |
|
|
(14,939,245 |
) |
|
|
(3,868,030 |
) |
|
|
(2,786,182 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(17,661,486 |
) |
|
|
(18,741,604 |
) |
|
|
(9,552,801 |
) |
|
|
(3,895,443 |
) |
|
|
(2,517,142 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
($16,694,527 |
) |
|
|
($18,994,089 |
) |
|
|
($9,879,123 |
) |
|
|
($3,800,641 |
) |
|
|
($2,505,581 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$6,320 |
|
|
|
$705 |
|
|
|
$1,394 |
|
|
|
$14,464 |
|
|
|
$14,086 |
|
|
|
|
| |
| STATEMENTS OF CHANGES IN NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sit Balanced Fund |
|
|
Sit Dividend Growth Fund |
|
| |
|
Six Months Ended
December 31,2011
(Unaudited) |
|
|
Year Ended
June 30, 2011 |
|
|
Six Months Ended
December 31,2011
(Unaudited) |
|
|
Year
Ended
June 30,
2011 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
$100,752 |
|
|
|
$196,042 |
|
|
|
$3,721,327 |
|
|
|
$2,922,528 |
|
| Net realized gain (loss) on investments and foreign currency transactions |
|
|
142,575 |
|
|
|
259,850 |
|
|
|
4,892,299 |
|
|
|
3,665,498 |
|
| Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |
|
|
(421,470 |
) |
|
|
1,429,713 |
|
|
|
(17,789,078 |
) |
|
|
33,423,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
|
|
(178,143 |
) |
|
|
1,885,605 |
|
|
|
(9,175,452 |
) |
|
|
40,011,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
(121,000 |
) |
|
|
(220,001 |
) |
|
|
(4,119,817 |
) |
|
|
(1,576,972 |
) |
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
(640,186 |
) |
|
|
(394,029 |
) |
| Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
— |
|
|
|
— |
|
|
|
(2,673,682 |
) |
|
|
— |
|
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
(539,573 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total distributions |
|
|
(121,000 |
) |
|
|
(220,001 |
) |
|
|
(7,973,258 |
) |
|
|
(1,971,001 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
155,789 |
|
|
|
563,638 |
|
|
|
148,506,627 |
|
|
|
285,199,007 |
|
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
27,940,284 |
|
|
|
29,799,433 |
|
| Capital share proceeds (note 5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
120,125 |
|
|
|
218,217 |
|
|
|
2,044,560 |
|
|
|
755,122 |
|
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
1,174,681 |
|
|
|
393,299 |
|
| Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
(414,070 |
) |
|
|
(1,846,872 |
) |
|
|
(73,698,359 |
) |
|
|
(26,676,725 |
) |
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
(8,318,501 |
) |
|
|
(7,497,899 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from capital transactions |
|
|
(138,156 |
) |
|
|
(1,065,017 |
) |
|
|
97,649,292 |
|
|
|
281,972,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
(437,299 |
) |
|
|
600,587 |
|
|
|
80,500,582 |
|
|
|
320,013,196 |
|
|
|
|
|
|
| Net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
11,150,413 |
|
|
|
10,549,826 |
|
|
|
384,337,165 |
|
|
|
64,323,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period * |
|
|
$10,713,114 |
|
|
|
$11,150,413 |
|
|
|
$464,837,747 |
|
|
|
$384,337,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
9,963 |
|
|
|
35,186 |
|
|
|
11,446,781 |
|
|
|
21,928,647 |
|
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
2,192,401 |
|
|
|
2,260,496 |
|
| Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
7,537 |
|
|
|
14,144 |
|
|
|
159,103 |
|
|
|
60,038 |
|
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
91,759 |
|
|
|
31,617 |
|
| Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
(25,916 |
) |
|
|
(116,291 |
) |
|
|
(5,622,719 |
) |
|
|
(2,107,311 |
) |
| Common shares (Class S) |
|
|
— |
|
|
|
— |
|
|
|
(660,871 |
) |
|
|
(581,199 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) |
|
|
(8,416 |
) |
|
|
(66,961 |
) |
|
|
7,606,454 |
|
|
|
21,592,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * includes undistributed net investment income (loss) |
|
|
$1,311 |
|
|
|
$21,559 |
|
|
|
$115,829 |
|
|
|
$1,154,505 |
|
See accompanying notes to
financial statements.
|
|
|
| 48 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sit Global Dividend Growth Fund |
|
|
Sit Large Cap Growth Fund |
|
|
Sit Mid Cap Growth Fund |
|
|
|
Six Months Ended
December 31, 2011
(Unaudited) |
|
|
Year
Ended
June 30,
2011 |
|
|
Six Months Ended
December 31, 2011
(Unaudited) |
|
|
Year
Ended
June 30,
2011 |
|
|
Six Months Ended
December 31, 2011
(Unaudited) |
|
|
Year
Ended
June 30,
2011 |
|
|
|
|
|
|
|
|
|
|
| |
$73,799 |
|
|
|
$88,106 |
|
|
|
$966,959 |
|
|
|
$2,222,632 |
|
|
|
($252,485 |
) |
|
|
($682,247 |
) |
|
|
|
|
|
|
|
|
|
| |
33,226 |
|
|
|
149,909 |
|
|
|
16,601,966 |
|
|
|
16,383,200 |
|
|
|
2,242,419 |
|
|
|
9,559,375 |
|
|
|
|
|
|
|
|
|
|
| |
(807,901 |
) |
|
|
1,019,265 |
|
|
|
(34,263,452 |
) |
|
|
82,886,395 |
|
|
|
(20,984,023 |
) |
|
|
38,339,256 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(700,876 |
) |
|
|
1,257,280 |
|
|
|
(16,694,527 |
) |
|
|
101,492,227 |
|
|
|
(18,994,089 |
) |
|
|
47,216,384 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(95,824 |
) |
|
|
(55,448 |
) |
|
|
(2,117,000 |
) |
|
|
(2,300,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
| |
(19,176 |
) |
|
|
(12,552 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| |
(90,583 |
) |
|
|
(35,832 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
(23,745 |
) |
|
|
(11,279 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(229,328 |
) |
|
|
(115,111 |
) |
|
|
(2,117,000 |
) |
|
|
(2,300,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
916,911 |
|
|
|
4,339,721 |
|
|
|
7,422,006 |
|
|
|
33,666,154 |
|
|
|
580,428 |
|
|
|
6,380,037 |
|
|
|
| |
678,463 |
|
|
|
293,993 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,188 |
|
|
|
|
|
|
|
|
|
|
| |
184,075 |
|
|
|
85,993 |
|
|
|
2,015,056 |
|
|
|
2,229,695 |
|
|
|
— |
|
|
|
— |
|
|
|
| |
42,921 |
|
|
|
23,818 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| |
(642,443 |
) |
|
|
(311,304 |
) |
|
|
(81,773,521 |
) |
|
|
(177,402,967 |
) |
|
|
(9,785,911 |
) |
|
|
(18,568,538 |
) |
|
|
| |
(59,046 |
) |
|
|
(10,601 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1,120,881 |
|
|
|
4,421,620 |
|
|
|
(72,336,459 |
) |
|
|
(141,507,118 |
) |
|
|
(9,205,483 |
) |
|
|
(12,186,313 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
190,677 |
|
|
|
5,563,789 |
|
|
|
(91,147,986 |
) |
|
|
(42,314,891 |
) |
|
|
(28,199,572 |
) |
|
|
35,030,071 |
|
|
|
|
|
|
|
|
|
|
| |
9,277,679 |
|
|
|
3,713,890 |
|
|
|
365,044,597 |
|
|
|
407,359,488 |
|
|
|
165,287,681 |
|
|
|
130,257,610 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$9,468,356 |
|
|
|
$9,277,679 |
|
|
|
$273,896,611 |
|
|
|
$365,044,597 |
|
|
|
$137,088,109 |
|
|
|
$165,287,681 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
74,442 |
|
|
|
336,133 |
|
|
|
179,896 |
|
|
|
841,449 |
|
|
|
42,419 |
|
|
|
427,046 |
|
|
|
| |
57,569 |
|
|
|
23,061 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| |
15,528 |
|
|
|
7,107 |
|
|
|
49,486 |
|
|
|
53,151 |
|
|
|
— |
|
|
|
— |
|
|
|
| |
3,656 |
|
|
|
1,974 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| |
(52,332 |
) |
|
|
(24,351 |
) |
|
|
(1,965,461 |
) |
|
|
(4,313,565 |
) |
|
|
(680,342 |
) |
|
|
(1,273,523 |
) |
|
|
| |
(4,812 |
) |
|
|
(820 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
94,051 |
|
|
|
343,104 |
|
|
|
(1,736,079 |
) |
|
|
(3,418,965 |
) |
|
|
(637,923 |
) |
|
|
(846,477 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$1,201 |
|
|
|
$42,402 |
|
|
|
$2,848 |
|
|
|
$1,152,889 |
|
|
|
(252,485 |
) |
|
|
— |
|
|
|
|
| |
| STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sit Small Cap Growth Fund |
|
Sit International Growth Fund |
| |
|
Six Months Ended
December 31,2011
(Unaudited) |
|
Year Ended
June 30, 2011 |
|
Six Months Ended
December 31,2011
(Unaudited) |
|
Year Ended
June 30, 2011 |
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
|
($326,322 |
) |
|
|
|
($710,137 |
) |
|
|
|
$94,802 |
|
|
|
|
$269,368 |
|
| Net realized gain on investments and foreign currency transactions |
|
|
|
5,386,444 |
|
|
|
|
5,818,321 |
|
|
|
|
(27,413 |
) |
|
|
|
1,553,994 |
|
| Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions |
|
|
|
(14,939,245 |
) |
|
|
|
18,521,998 |
|
|
|
|
(3,868,030 |
) |
|
|
|
4,265,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in net assets resulting from operations |
|
|
|
(9,879,123 |
) |
|
|
|
23,630,182 |
|
|
|
|
(3,800,641 |
) |
|
|
|
6,088,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Distributions from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(348,000 |
) |
|
|
|
(215,000 |
) |
| Net realized gains on investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total distributions |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(348,000 |
) |
|
|
|
(215,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital share transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
1,106,578 |
|
|
|
|
20,574,826 |
|
|
|
|
219,272 |
|
|
|
|
659,523 |
|
| Capital share proceeds (note 5) |
|
|
|
— |
|
|
|
|
14,142 |
|
|
|
|
— |
|
|
|
|
114,003 |
|
| Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
344,445 |
|
|
|
|
212,964 |
|
| Payments for shares redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
(15,649,580 |
) |
|
|
|
(9,322,805 |
) |
|
|
|
(1,774,909 |
) |
|
|
|
(2,623,522 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from capital transactions |
|
|
|
(14,543,002 |
) |
|
|
|
11,266,163 |
|
|
|
|
(1,211,192 |
) |
|
|
|
(1,637,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
|
(24,422,125 |
) |
|
|
|
34,896,345 |
|
|
|
|
(5,359,833 |
) |
|
|
|
4,236,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
|
94,744,120 |
|
|
|
|
59,847,775 |
|
|
|
|
24,822,985 |
|
|
|
|
20,586,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period* |
|
|
|
$70,321,995 |
|
|
|
|
$94,744,120 |
|
|
|
|
$19,463,152 |
|
|
|
|
$24,822,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital transactions in shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
28,301 |
|
|
|
|
484,884 |
|
|
|
|
17,162 |
|
|
|
|
43,420 |
|
| Reinvested distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
28,187 |
|
|
|
|
15,114 |
|
| Redeemed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares (Class I) |
|
|
|
(417,337 |
) |
|
|
|
(235,906 |
) |
|
|
|
(137,207 |
) |
|
|
|
(184,894 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) |
|
|
|
(389,036 |
) |
|
|
|
248,978 |
|
|
|
|
(91,858 |
) |
|
|
|
(126,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *includes undistributed net investment income (loss) |
|
|
|
(326,322 |
) |
|
|
|
— |
|
|
|
|
($4,315 |
) |
|
|
|
$248,883 |
|
See accompanying notes to
financial statements.
|
|
|
| 50 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
|
|
|
|
|
|
|
|
|
|
| Sit Developing Markets Growth Fund |
|
|
|
Six Months Ended
December 31,2011
(Unaudited) |
|
|
|
|
Year
Ended
June 30,
2011 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
$11,561 |
|
|
|
|
|
$24,691 |
|
|
| |
269,040 |
|
|
|
|
|
1,076,174 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
(2,786,182 |
) |
|
|
|
|
2,547,316 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
(2,505,581 |
) |
|
|
|
|
3,648,181 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
(36,001 |
) |
|
|
|
|
(10,903 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
(956,672 |
) |
|
|
|
|
(469,086 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
(992,673 |
) |
|
|
|
|
(479,989 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
181,709 |
|
|
|
|
|
2,891,484 |
|
|
| |
— |
|
|
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
977,185 |
|
|
|
|
|
474,459 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
(2,003,879 |
) |
|
|
|
|
(5,157,147 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
(844,985 |
) |
|
|
|
|
(1,791,204 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
(4,343,239 |
) |
|
|
|
|
1,376,988 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
15,419,680 |
|
|
|
|
|
14,042,692 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
$11,076,441 |
|
|
|
|
|
$15,419,680 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
9,331 |
|
|
|
|
|
128,031 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
56,616 |
|
|
|
|
|
20,683 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
(99,139 |
) |
|
|
|
|
(224,006 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
(33,192 |
) |
|
|
|
|
(75,292 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
$3,627 |
|
|
|
|
|
$28,067 |
|
|
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Balanced
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
|
$16.47 |
|
|
|
|
$14.18 |
|
|
|
|
$12.96 |
|
|
|
|
$16.32 |
|
|
|
|
$16.93 |
|
|
|
|
$15.14 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
|
|
0.15 |
|
|
|
|
0.27 |
|
|
|
|
0.35 |
|
|
|
|
0.41 |
|
|
|
|
0.38 |
|
|
|
|
0.34 |
|
| Net realized and unrealized gains (losses) on investments |
|
|
|
(0.42 |
) |
|
|
|
2.32 |
|
|
|
|
1.24 |
|
|
|
|
(3.32 |
) |
|
|
|
(0.66 |
) |
|
|
|
1.78 |
|
| Total from operations |
|
|
|
(0.27 |
) |
|
|
|
2.59 |
|
|
|
|
1.59 |
|
|
|
|
(2.91 |
) |
|
|
|
(0.28 |
) |
|
|
|
2.12 |
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
|
(0.18 |
) |
|
|
|
(0.30 |
) |
|
|
|
(0.37 |
) |
|
|
|
(0.45 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.33 |
) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
|
|
$16.02 |
|
|
|
|
$16.47 |
|
|
|
|
$14.18 |
|
|
|
|
$12.96 |
|
|
|
|
$16.32 |
|
|
|
|
$16.93 |
|
| Total investment return 2 |
|
|
|
(1.63% |
)3
|
|
|
|
18.46% |
|
|
|
|
12.33% |
|
|
|
|
(17.84% |
) |
|
|
|
(1.72% |
) |
|
|
|
14.24% |
|
| Net assets at end of period (000’s omitted) |
|
|
|
$10,713 |
|
|
|
|
$11,150 |
|
|
|
|
$10,550 |
|
|
|
|
$10,349 |
|
|
|
|
$12,939 |
|
|
|
|
$12,529 |
|
|
|
|
|
|
|
|
| Ratios: 4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
| Net investment income |
|
|
|
1.87% |
|
|
|
|
1.75% |
|
|
|
|
2.44% |
|
|
|
|
3.12% |
|
|
|
|
2.22% |
|
|
|
|
2.13% |
|
|
|
|
|
|
|
|
| Portfolio turnover rate (excluding short-term securities) |
|
|
|
22.64% |
3 |
|
|
|
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. |
| 4 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
|
|
|
| 52 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Dividend Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
| Class I |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
|
$13.91 |
|
|
|
|
$10.64 |
|
|
|
|
$9.60 |
|
|
|
|
$13.11 |
|
|
|
|
$14.42 |
|
|
|
|
$12.26 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
|
|
0.12 |
|
|
|
|
0.21 |
|
|
|
|
0.19 |
|
|
|
|
0.23 |
|
|
|
|
0.23 |
|
|
|
|
0.24 |
|
| Net realized and unrealized gains (losses) on investments 2 |
|
|
|
(0.58 |
) |
|
|
|
3.23 |
|
|
|
|
1.03 |
|
|
|
|
(3.09 |
) |
|
|
|
(0.63 |
) |
|
|
|
2.35 |
|
| Total from operations |
|
|
|
(0.46 |
) |
|
|
|
3.44 |
|
|
|
|
1.22 |
|
|
|
|
(2.86 |
) |
|
|
|
(0.40 |
) |
|
|
|
2.59 |
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
|
(0.16 |
) |
|
|
|
(0.17 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.26 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.23 |
) |
| From net realized gains |
|
|
|
(0.10 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(0.39 |
) |
|
|
|
(0.69 |
) |
|
|
|
(0.20 |
) |
| Total distributions |
|
|
|
(0.26 |
) |
|
|
|
(0.17 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.65 |
) |
|
|
|
(0.91 |
) |
|
|
|
(0.43 |
) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
|
|
$13.19 |
|
|
|
|
$13.91 |
|
|
|
|
$10.64 |
|
|
|
|
$9.60 |
|
|
|
|
$13.11 |
|
|
|
|
$14.42 |
|
| Total investment return 3 |
|
|
|
(3.30% |
)4
|
|
|
|
32.58% |
|
|
|
|
12.71% |
|
|
|
|
(21.59% |
) |
|
|
|
(3.06% |
) |
|
|
|
21.48% |
|
| Net assets at end of period (000’s omitted) |
|
|
|
$390,071 |
|
|
|
|
$328,057 |
|
|
|
|
$39,430 |
|
|
|
|
$28,305 |
|
|
|
|
$41,239 |
|
|
|
|
$37,674 |
|
| Ratios:
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
1.00% |
|
| Net investment income |
|
|
|
1.87% |
|
|
|
|
1.59% |
|
|
|
|
1.70% |
|
|
|
|
2.35% |
|
|
|
|
1.68% |
|
|
|
|
1.81% |
|
| Portfolio turnover rate (excluding short-term securities) 6 |
|
|
|
20.62% |
4 |
|
|
|
14.67% |
|
|
|
|
31.84% |
|
|
|
|
69.10% |
|
|
|
|
38.86% |
|
|
|
|
34.02% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
| Class S |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
|
|
$13.87 |
|
|
|
|
$10.61 |
|
|
|
|
$9.58 |
|
|
|
|
$13.08 |
|
|
|
|
$14.39 |
|
|
|
|
$12.26 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
|
|
0.11 |
|
|
|
|
0.17 |
|
|
|
|
0.16 |
|
|
|
|
0.21 |
|
|
|
|
0.20 |
|
|
|
|
0.21 |
|
| Net realized and unrealized gains (losses) on investments 2 |
|
|
|
(0.59 |
) |
|
|
|
3.23 |
|
|
|
|
1.02 |
|
|
|
|
(3.09 |
) |
|
|
|
(0.63 |
) |
|
|
|
2.33 |
|
| Total from operations |
|
|
|
(0.48 |
) |
|
|
|
3.40 |
|
|
|
|
1.18 |
|
|
|
|
(2.88 |
) |
|
|
|
(0.43 |
) |
|
|
|
2.54 |
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
|
|
(0.13 |
) |
|
|
|
(0.14 |
) |
|
|
|
(0.15 |
) |
|
|
|
(0.23 |
) |
|
|
|
(0.19 |
) |
|
|
|
(0.21 |
) |
| From net realized gains |
|
|
|
(0.10 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(0.39 |
) |
|
|
|
(0.69 |
) |
|
|
|
(0.20 |
) |
| Total distributions |
|
|
|
(0.23 |
) |
|
|
|
(0.14 |
) |
|
|
|
(0.15 |
) |
|
|
|
(0.62 |
) |
|
|
|
(0.88 |
) |
|
|
|
(0.41 |
) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
|
|
$13.16 |
|
|
|
|
$13.87 |
|
|
|
|
$10.61 |
|
|
|
|
$9.58 |
|
|
|
|
$13.08 |
|
|
|
|
$14.39 |
|
| Total investment return 3 |
|
|
|
(3.41% |
)4
|
|
|
|
32.27% |
|
|
|
|
12.37% |
|
|
|
|
(21.79% |
) |
|
|
|
(3.27% |
) |
|
|
|
21.02% |
|
| Net assets at end of period (000’s omitted) |
|
|
|
$74,766 |
|
|
|
|
$56,280 |
|
|
|
|
$24,894 |
|
|
|
|
$15,730 |
|
|
|
|
$14,300 |
|
|
|
|
$2,823 |
|
| Ratios:
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
1.25% |
|
|
|
|
1.25% |
|
|
|
|
1.25% |
|
|
|
|
1.25% |
|
|
|
|
1.25% |
|
|
|
|
1.25% |
|
| Net investment income |
|
|
|
1.62% |
|
|
|
|
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 |
Includes redemption fees, which represent 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. |
| 5 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 6 |
The portfolio turnover rate presented is for the entire Fund. |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Global Dividend Growth Fund
|
|
|
|
|
|
|
|
|
| |
| |
|
Six Months Ended
December 31, 2011 (Unaudited) |
|
Years Ended June 30, |
|
Nine Months Ended
June 30,
2009 |
| Class I |
|
|
|
| |
|
|
2011 |
|
2010 |
|
| |
| Net Asset Value: |
|
|
|
|
|
|
|
|
| Beginning of period |
|
$13.26 |
|
$10.41 |
|
$9.70 |
|
$10.00 |
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
0.10 |
|
0.20 |
|
0.17 |
|
0.15 |
| Net realized and unrealized gains (losses) on investments |
|
(1.12) |
|
2.95 |
|
0.68 |
|
(0.36) |
|
|
|
| Total from operations |
|
(1.02) |
|
3.15 |
|
0.85 |
|
(0.21) |
|
|
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
| From net investment income |
|
(0.16) |
|
(0.17) |
|
(0.14) |
|
(0.09) |
| From net realized gains |
|
(0.15) |
|
(0.13) |
|
— |
|
— |
|
|
|
| Total distributions |
|
(0.31) |
|
(0.30) |
|
(0.14) |
|
(0.09) |
|
|
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
| End of period |
|
$11.93 |
|
$13.26 |
|
$10.41 |
|
$9.70 |
|
|
|
| Total investment return 2 |
|
(7.70%)3 |
|
30.55% |
|
8.79% |
|
(2.06%)3 |
|
|
|
| Net assets at end of period (000’s omitted) |
|
$7,496 |
|
$7,834 |
|
$2,832 |
|
$2,290 |
| Ratios: 4 |
|
|
|
|
|
|
|
|
| Expenses |
|
1.25% |
|
1.25% |
|
1.25% |
|
1.25% |
| Net investment income |
|
1.67% |
|
1.57% |
|
1.48% |
|
2.30% |
| Portfolio turnover rate
(excluding short-term securities) 5 |
|
13.83%3 |
|
21.84% |
|
21.60% |
|
17.69%3 |
| |
| |
|
Six Months Ended December 31, 2011 (Unaudited) |
|
Years Ended June 30, |
|
Nine Months Ended June 30, 2009 |
| Class S |
|
|
|
| |
|
|
2011 |
|
2010 |
|
| |
| Net Asset Value: |
|
|
|
|
|
|
|
|
| Beginning of period |
|
$13.24 |
|
$10.40 |
|
$9.70 |
|
$10.00 |
|
|
|
| Operations: |
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
0.09 |
|
0.16 |
|
0.14 |
|
0.13 |
| Net realized and unrealized gains (losses) on investments |
|
(1.12) |
|
2.95 |
|
0.68 |
|
(0.36) |
|
|
|
| Total from operations |
|
(1.03) |
|
3.11 |
|
0.82 |
|
(0.23) |
|
|
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
| From net investment income |
|
(0.14) |
|
(0.14) |
|
(0.12) |
|
(0.07) |
| From net realized gains |
|
(0.15) |
|
(0.13) |
|
— |
|
— |
|
|
|
| Total distributions |
|
(0.29) |
|
(0.27) |
|
(0.12) |
|
(0.07) |
|
|
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
| End of period |
|
$11.92 |
|
$13.24 |
|
$10.40 |
|
$9.70 |
|
|
|
| Total investment return 2 |
|
(7.80%)3 |
|
30.17% |
|
8.47% |
|
(2.18%)3 |
|
|
|
| Net assets at end of period (000’s omitted) |
|
$1,972 |
|
$1,444 |
|
$882 |
|
$740 |
| Ratios: 4 |
|
|
|
|
|
|
|
|
| Expenses |
|
1.50% |
|
1.50% |
|
1.50% |
|
1.50% |
| Net investment income |
|
1.42% |
|
1.32% |
|
1.23% |
|
2.05% |
| 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.
|
| 4 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of
the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 5 |
The portfolio turnover rate presented is for the entire Fund. |
|
|
|
| 54 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Large Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
| Net Asset
Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
$43.96 |
|
$34.75 |
|
$32.42 |
|
$43.41 |
|
$43.99 |
|
|
$37.60 |
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
0.13 |
|
0.22 |
|
0.22 |
|
0.28 |
|
0.20 |
|
|
0.24 |
|
| Net realized and unrealized gains (losses) on investments |
|
(2.07) |
|
9.21 |
|
2.33 |
|
(11.06) |
|
(0.65) |
|
|
6.43 |
|
|
|
|
|
| Total from operations |
|
(1.94) |
|
9.43 |
|
2.55 |
|
(10.78) |
|
(0.45) |
|
|
6.67 |
|
|
|
|
|
| Redemption fees |
|
—
2 |
|
— 2 |
|
— 2 |
|
0.01 |
|
— 2 |
|
|
— |
2 |
|
|
|
|
| Distributions to Shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From net investment income |
|
(0.32) |
|
(0.22) |
|
(0.22) |
|
(0.22) |
|
(0.13) |
|
|
(0.28 |
) |
|
|
|
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
$41.70 |
|
$43.96 |
|
$34.75 |
|
$32.42 |
|
$43.41 |
|
|
$43.99 |
|
|
|
|
|
| Total investment return 3 |
|
(4.40%)4 |
|
27.18% |
|
7.80% |
|
(24.77%) |
|
(1.03%) |
|
|
17.79% |
|
|
|
|
|
| Net assets at end of period (000’s omitted) |
|
$273,897 |
|
$365,045 |
|
$407,359 |
|
$324,071 |
|
$287,695 |
|
|
$125,741 |
|
| Ratios: 5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
1.00% |
|
1.00% |
|
1.00% |
|
1.00% |
|
1.00% |
|
|
1.00% |
|
| Net investment income |
|
0.63% |
|
0.54% |
|
0.58% |
|
0.85% |
|
0.46% |
|
|
0.59% |
|
| Portfolio turnover rate
(excluding short-term securities) |
|
7.57%4 |
|
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. |
| 5 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Mid Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
| Net Asset
Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
$15.88 |
|
$11.57 |
|
$9.90 |
|
$14.83 |
|
$15.71 |
|
|
$13.01 |
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment loss 1 |
|
(0.03) |
|
(0.06) |
|
(0.05) |
|
(0.03) |
|
(0.07) |
|
|
(0.04 |
) |
| Net realized and unrealized gains (losses) on investments |
|
(1.82) |
|
4.37 |
|
1.72 |
|
(4.81) |
|
(0.31) |
|
|
2.74 |
|
|
|
|
|
| Total from operations |
|
(1.85) |
|
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 |
|
$14.03 |
|
$15.88 |
|
$11.57 |
|
$9.90 |
|
$14.83 |
|
|
$15.71 |
|
|
|
|
|
| Total investment return 4 |
|
(11.65%)5 |
|
37.25%6 |
|
16.87% |
|
(32.51%) |
|
(2.63%) |
|
|
20.75% |
|
|
|
|
|
| Net assets at end of period (000’s omitted) |
|
$137,088 |
|
$165,288 |
|
$130,258 |
|
$127,477 |
|
$210,880 |
|
|
$205,256 |
|
| Ratios: 7, 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (without waiver) |
|
1.25% |
|
1.25% |
|
1.25% |
|
1.25% |
|
1.25% |
|
|
1.25% |
|
| Expenses (with waiver) |
|
1.25% |
|
1.20% |
|
1.15% |
|
1.15% |
|
1.15% |
|
|
1.15% |
|
| Net investment loss (without waiver) |
|
(0.35%) |
|
(0.49%) |
|
(0.52%) |
|
(0.40%) |
|
(0.52%) |
|
|
(0.41% |
) |
| Net investment loss (with waiver) |
|
(0.35%) |
|
(0.44%) |
|
(0.42%) |
|
(0.30%) |
|
(0.42%) |
|
|
(0.31% |
) |
| Portfolio turnover rate
(excluding short-term securities) |
|
9.80%5 |
|
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. |
| 6 |
Impact on total return from capital share proceeds was less than 0.01%. |
| 7 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 8 |
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. |
|
|
|
| 56 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
$43.86 |
|
$31.32 |
|
$25.89 |
|
$37.44 |
|
$40.14 |
|
|
$33.46 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment loss 1 |
|
(0.17) |
|
(0.36) |
|
(0.24) |
|
(0.16) |
|
(0.37) |
|
|
(0.27 |
) |
| Net realized and unrealized gains (losses) on investments |
|
(3.98) |
|
12.89 |
|
5.67 |
|
(11.39) |
|
(2.33) |
|
|
6.95 |
|
| Total from operations |
|
(4.15) |
|
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 |
|
$39.71 |
|
$43.86 |
|
$31.32 |
|
$25.89 |
|
$37.44 |
|
|
$40.14 |
|
| Total investment return 4 |
|
(9.46%)5 |
|
40.04%6 |
|
20.97% |
|
(30.85%) |
|
(6.73%) |
|
|
19.96% |
|
| Net assets at end of period (000’s omitted) |
|
$70,322 |
|
$94,744 |
|
$59,848 |
|
$58,352 |
|
$93,527 |
|
|
$105,800 |
|
| Ratios: 7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
1.50% |
|
1.50% |
|
1.50% |
|
1.50% |
|
1.50% |
|
|
1.50% |
|
| Net investment loss |
|
(0.84%) |
|
(0.91%) |
|
(0.80%) |
|
(0.61%) |
|
(0.93%) |
|
|
(0.79% |
) |
| Portfolio turnover rate
(excluding short-term securities) |
|
13.46%5 |
|
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. |
| 6 |
Impact on total return from capital share proceeds was 0.03%. |
| 7 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial
statements. |
Sit International Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
|
Years Ended June 30, |
|
|
|
| |
|
(Unaudited) |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
$15.16 |
|
$11.67 |
|
$10.90 |
|
$17.80 |
|
$18.70 |
|
|
$15.48 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income 1 |
|
0.06 |
|
0.16 |
|
0.11 |
|
0.13 |
|
0.15 |
|
|
0.20 |
|
| Net realized and unrealized gains (losses) on investments |
|
(2.40) |
|
3.39 |
|
0.65 |
|
(6.95) |
|
(0.85) |
|
|
3.17 |
|
| Total from operations |
|
(2.34) |
|
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 |
|
(0.23) |
|
(0.13) |
|
(0.12) |
|
(0.18) |
|
(0.20) |
|
|
(0.15 |
) |
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
$12.59 |
|
$15.16 |
|
$11.67 |
|
$10.90 |
|
$17.80 |
|
|
$18.70 |
|
| Total investment return 4 |
|
(15.39%)5 |
|
31.08%6 |
|
8.10%6 |
|
(37.71%)6 |
|
(3.82%) |
|
|
21.87% |
|
| Net assets at end of period (000’s omitted) |
|
$19,463 |
|
$24,823 |
|
$20,586 |
|
$21,009 |
|
$37,714 |
|
|
$39,511 |
|
| Ratios: 7, 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses (without waiver) |
|
1.50% |
|
1.61% |
|
1.85% |
|
1.85% |
|
1.85% |
|
|
1.85% |
|
| Expenses (with waiver) |
|
1.50% |
|
1.50% |
|
1.50% |
|
1.50% |
|
1.50% |
|
|
1.50% |
|
| Net investment income (without waiver) |
|
0.88% |
|
1.01% |
|
0.50% |
|
0.74% |
|
0.43% |
|
|
0.84% |
|
| Net investment income (with waiver) |
|
0.88% |
|
1.12% |
|
0.85% |
|
1.09% |
|
0.78% |
|
|
1.19% |
|
| Portfolio turnover rate
(excluding short-term securities) |
|
12.82%5 |
|
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. |
| 6 |
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.
|
| 7 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
| 8 |
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. |
|
|
|
| 58 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| FINANCIAL HIGHLIGHTS |
| Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements. |
|
|
Sit Developing Markets Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Six Months Ended
December 31, 2011 |
|
|
|
|
Years Ended June 30, |
|
|
|
|
| |
|
(Unaudited) |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2008 |
|
|
2007 |
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of period |
|
$23.24 |
|
|
$19.00 |
|
|
|
$16.13 |
|
|
|
$25.97 |
|
|
|
$24.94 |
|
|
|
$17.38 |
|
| Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) 1 |
|
0.02 |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
(0.07) |
|
|
|
0.05 |
|
| Net realized and unrealized gains (losses) on investments |
|
(3.98) |
|
|
4.90 |
|
|
|
2.90 |
|
|
|
(9.15) |
|
|
|
1.40 |
|
|
|
7.55 |
|
| Total from operations |
|
(3.96) |
|
|
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 |
|
(0.06) |
|
|
(0.02) |
|
|
|
(0.04) |
|
|
|
— |
|
|
|
(0.04) |
|
|
|
(0.05) |
|
| From net realized gains |
|
(1.65) |
|
|
(0.67) |
|
|
|
— |
|
|
|
(0.82) |
|
|
|
(0.27) |
|
|
|
— |
|
| Total distributions |
|
(1.71) |
|
|
(0.69) |
|
|
|
(0.04) |
|
|
|
(0.82) |
|
|
|
(0.31) |
|
|
|
(0.05) |
|
| Net Asset Value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period |
|
$17.57 |
|
|
$23.24 |
|
|
|
$19.00 |
|
|
|
$16.13 |
|
|
|
$25.97 |
|
|
|
$24.94 |
|
| Total investment return 4 |
|
(16.90%)5 |
|
|
25.95% |
|
|
|
18.05% |
|
|
|
(33.73%) |
6
|
|
|
5.26% |
|
|
|
43.82% |
|
| Net assets at end of period (000’s omitted) |
|
$11,076 |
|
|
$15,420 |
|
|
|
$14,043 |
|
|
|
$13,203 |
|
|
|
$23,195 |
|
|
|
$18,430 |
|
|
|
|
|
|
|
|
| Ratios: 7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
2.00% |
|
|
2.00% |
|
|
|
2.00% |
|
|
|
2.00% |
|
|
|
2.00% |
|
|
|
2.00% |
|
| Net investment income (loss) |
|
0.18% |
|
|
0.15% |
|
|
|
0.06% |
|
|
|
0.24% |
|
|
|
(0.27%) |
|
|
|
0.25% |
|
|
|
|
|
|
|
|
| Portfolio turnover rate (excluding short-term securities) |
|
7.81%5 |
|
|
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. |
| 6 |
Impact on total return from capital share proceeds was 0.37%. |
| 7 |
Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a
pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. |
|
| |
| NOTES TO FINANCIAL STATEMENTS (Unaudited) |
| Six Months Ended December 31, 2011 |
|
|
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 SEMI-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. For foreign equities, the pricing services adjust closing prices by applying a systematic process
for events occurring after the close of the foreign exchange. All of these inputs are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the
measurement a Level 3 measurement.
• Level 3 – significant unobservable inputs, including the
Adviser’s own assumptions in determining the fair value of investments.
The inputs or methodology used
for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A summary of the levels for the Funds’ investments as of December 31, 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.
|
| |
| NOTES TO FINANCIAL STATEMENTS (Unaudited) |
| Six Months Ended December 31, 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 December 31, 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 December 31, 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 |
|
$1,750,167 |
|
($313,454) |
|
$1,436,713 |
|
$8,703,796 |
| Dividend Growth |
|
29,563,370 |
|
(14,454,743) |
|
15,108,627 |
|
434,260,991 |
| Global Dividend Growth |
|
906,443 |
|
(494,840) |
|
411,603 |
|
8,942,344 |
| Large Cap Growth |
|
57,377,139 |
|
(10,051,198) |
|
47,325,941 |
|
222,814,190 |
| Mid Cap Growth |
|
38,504,351 |
|
(9,416,080) |
|
29,088,271 |
|
105,546,287 |
| Small Cap Growth |
|
16,900,626 |
|
(5,514,504) |
|
11,386,122 |
|
57,972,332 |
| International Growth |
|
3,308,602 |
|
(1,586,330) |
|
1,722,272 |
|
17,196,273 |
| Developing Markets Growth |
|
3,798,657 |
|
(480,040) |
|
3,318,617 |
|
7,597,550 |
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 SEMI-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 |
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 |
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.
|
| |
| NOTES TO FINANCIAL STATEMENTS (Unaudited) |
| Six Months Ended December 31, 2011 (Continued) |
|
|
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.
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 six months ended December 31, 2011, were as follow:
|
|
|
|
|
|
|
|
|
| |
|
Purchases |
|
Proceeds |
|
|
|
| |
|
U.S. Government |
|
Other |
|
U.S. Government |
|
Other |
|
|
|
| Balanced |
|
$583,497 |
|
$1,759,686 |
|
$593,495 |
|
$2,172,278 |
| Dividend Growth |
|
— |
|
171,577,534 |
|
— |
|
82,198,092 |
| Global Dividend Growth |
|
— |
|
2,211,009 |
|
— |
|
1,251,469 |
| Large Cap Growth |
|
— |
|
23,098,197 |
|
— |
|
95,643,636 |
| Mid Cap Growth |
|
— |
|
14,055,373 |
|
— |
|
22,562,496 |
| Small Cap Growth |
|
— |
|
10,373,661 |
|
— |
|
24,787,717 |
| International Growth |
|
— |
|
2,725,592 |
|
— |
|
4,088,351 |
| Developing Markets Growth |
|
— |
|
1,014,143 |
|
— |
|
2,830,225 |
|
|
|
| 64 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
| (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 |
% |
|
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 December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shares |
|
|
|
|
%
Shares
Outstanding |
|
|
| Balanced |
|
|
199,162 |
|
|
|
|
29.8 |
|
| Dividend Growth |
|
|
692,486 |
|
|
|
|
2.0 |
|
| Global Dividend Growth |
|
|
310,667 |
|
|
|
|
39.1 |
|
| Large Cap Growth |
|
|
324,332 |
|
|
|
|
4.9 |
|
| Mid Cap Growth |
|
|
2,273,633 |
|
|
|
|
23.3 |
|
| Small Cap Growth |
|
|
635,309 |
|
|
|
|
35.9 |
|
| International Growth |
|
|
544,285 |
|
|
|
|
35.2 |
|
| Developing Markets Growth |
|
|
197,353 |
|
|
|
|
31.3 |
|
| (5) |
Capital Share Activity |
Market Timing Settlements
As of December 31, 2011, the Mid Cap Growth Fund, Small Cap Growth Fund and the International Growth Fund received market timing settlements due to the Funds for fiscal year ended June 30, 2011
in the amount of $2,188, $14,142 and $67,740, respectively. The International Growth Fund expects to receive additional settlement dollars for approximately $275,505 from market timing settlements payable to the Fund for the fiscal years ended
June 30, 2010 and 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.
|
| |
| NOTES TO FINANCIAL STATEMENTS (Unaudited) |
| Six Months Ended December 31, 2011 (Continued) |
|
|
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% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Trading (Redemption) Fees
The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30
calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. For the six months ended December 31, 2011, the Funds received the following redemptions fees:
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class I |
|
|
Class S |
|
|
|
| Dividend Growth |
|
|
$576 |
|
|
|
$105 |
|
|
| Large Cap Growth |
|
|
2,143 |
|
|
|
— |
|
|
| Mid Cap Growth |
|
|
734 |
|
|
|
— |
|
|
| Small Cap Growth |
|
|
1,145 |
|
|
|
— |
|
|
| Developing Markets Growth |
|
|
10 |
|
|
|
— |
|
|
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.
|
|
|
| 66 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| EXPENSE EXAMPLE (Unaudited) |
|
|
|
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs,
including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period July 1, 2011 to December 31, 2011.
Actual Expenses
The first line of the following table provides information about actual account values and actual expenses. You may use the information in
this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table
provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The
hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table
is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs (redemption fees) were included, your costs would have been higher.
|
|
|
|
|
|
|
| Fund |
|
Beginning
Account
Value
(7/1/11) |
|
Ending
Account
Value
(12/31/11) |
|
Expenses
Paid During
Period*
(7/1/11-
12/31/11) |
| |
| Balanced Fund |
| |
| Actual |
|
$1,000 |
|
$983.70 |
|
$5.00 |
| Hypothetical |
|
$1,000 |
|
$1,020.16 |
|
$5.09 |
|
| |
| Dividend Growth Fund |
| |
| Actual |
|
|
|
|
|
|
| Class I |
|
$1,000 |
|
$967.00 |
|
$4.96 |
| Class S |
|
$1,000 |
|
$965.90 |
|
$6.19 |
| Hypothetical |
|
|
|
|
|
|
| Class I |
|
$1,000 |
|
$1,020.16 |
|
$5.09 |
| Class S |
|
$1,000 |
|
$1,018.90 |
|
$6.36 |
|
| |
| Global Dividend Growth Fund |
| |
| Actual |
|
|
|
|
|
|
| Class I |
|
$1,000 |
|
$923.00 |
|
$6.06 |
| Class S |
|
$1,000 |
|
$922.00 |
|
$7.27 |
| Hypothetical |
|
|
|
|
|
|
| Class I |
|
$1,000 |
|
$1,018.90 |
|
$6.36 |
| Class S |
|
$1,000 |
|
$1,017.64 |
|
$7.63 |
|
| |
| Large Cap Growth |
| |
| Actual |
|
$1,000 |
|
$956.00 |
|
$4.93 |
| Hypothetical |
|
$1,000 |
|
$1,020.16 |
|
$5.09 |
|
| |
| Mid Cap Growth Fund |
| |
| Actual |
|
$1,000 |
|
$883.50 |
|
$5.93 |
| Hypothetical |
|
$1,000 |
|
$1,018.90 |
|
$6.36 |
|
| |
| Small Cap Growth Fund |
| |
| Actual |
|
$1,000 |
|
$905.40 |
|
$7.20 |
| Hypothetical |
|
$1,000 |
|
$1,017.64 |
|
$7.63 |
|
| |
| International Growth Fund |
| |
| Actual |
|
$1,000 |
|
$846.10 |
|
$6.98 |
| Hypothetical |
|
$1,000 |
|
$1,017.64 |
|
$7.63 |
|
| |
| Developing Markets Growth Fund |
| |
| Actual |
|
$1,000 |
|
$831.00 |
|
$9.23 |
| Hypothetical |
|
$1,000 |
|
$1,015.12 |
|
$10.16 |
*Expenses are equal to the Fund’s annualized expense ratio of 1.00%, for the Balanced, Dividend
Growth, Class I and Large Cap Growth Funds; 1.25% for Dividend Growth Fund, Class S, Global Dividend Growth Fund, Class I and Mid Cap Growth Fund; 1.50% for Global Dividend Growth, Class S, Small Cap Growth and International Growth Funds; and 2.00%
for Developing Markets Growth Fund, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period.)
|
| |
| ADDITIONAL INFORMATION (Unaudited) |
|
|
|
PROXY VOTING
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.
RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
At their joint meeting held on October 24, 2011 the Boards of Directors of the Sit Mutual Funds unanimously approved the continuation for another one year period the investment management agreements
entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mid Cap Growth Fund, Inc. dated November 1, 1996; Sit Large Cap Growth Fund, Inc. dated November 1, 1996; and Sit Mutual Funds Inc., dated
November 1, 1992; (the “Agreements”).
The Boards approved the Agreements after a lengthy discussion and
consideration of various factors relating to the Boards’ selection of SIA as the investment adviser, and the Boards’ approval of the fees to be paid under the Agreements.
Investment Adviser Criteria. The Directors began their analysis by discussing their criteria for determining the quality of an
investment adviser. The Directors’ noted that their analysis is similar to that used by institutional investors in evaluating and selecting investment advisers. The Directors discussed several factors used to determine the overall quality of an
investment adviser and the nature, extent and quality of the services performed by SIA, including the following:
Investment Philosophy and Process. The Directors considered SIA’s philosophy of managing assets. With respect to equity
securities, SIA identifies growth-oriented securities issued by companies with the potential for earnings growth at a faster rate than the general economy and market index. SIA believes that earnings growth is the primary determinant of superior
long-term returns for equity securities, and invests in companies it believes exhibit above market and consistent growth as well as conservative and cyclical growth companies. SIA’s actively managed portfolios not only concentrate on the best
growth opportunities but do so at reasonable valuation levels. The Directors determined that the Stock Funds’ investment objectives are consistent with SIA’s investment philosophy and growth style. The Directors reviewed the Stock
Funds’ portfolio characteristics, and noted that SIA has consistently managed the Stock Funds in a growth style and the Directors found no indication of style drift away from growth stocks over market cycles. The Directors noted that in years
during which growth stocks have generally under-performed relative to value stocks, many funds with a stated growth style objective actually strayed from the growth style and invested a portion of their portfolios in value stocks. This has been
especially true with funds investing in international equity securities. In these instances, the Stock Funds may at times not rank favorably in comparisons with other funds investing in value stocks because the Stock Funds were disciplined in
maintaining their growth style.
The Directors discussed SIA’s consistent and well-defined investment process. With
respect to equity securities, SIA utilizes a team based top-down and bottom-up investment decision making process.
Investment Professionals. The Directors discussed the experience, knowledge and organizational stability of SIA and its investment
professionals. The Directors noted that SIA’s senior professionals are actively involved in the investment process and have significant investment industry experience.
|
|
|
| 68 |
|
SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
|
| |
| ADDITIONAL INFORMATION (Unaudited) (Continued) |
|
|
|
The Directors discussed the depth of SIA’s investment staff. The Directors noted
that SIA has over 30 investment professionals. Given the investment products offered by SIA and the assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients,
including the Funds, and to accommodate growth in the number of clients and assets under management for the near future. The Directors concluded that the depth of the investment staff, and in particular senior management and investment analysts, is
actually greater than the Funds currently require at their present asset size. The Directors noted that SIA has the resources of a $10 billion investment firm working for the benefit of the Fund shareholders.
Investment Performance. The Directors reviewed and discussed the Funds’ investment performance on an absolute and comparable
basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as equity growth funds.
Corporate Culture. The Directors discussed SIA’s corporate values to operate under the highest ethical and
professional standards. SIA’s culture is set and practiced by senior management who insist that all professionals exhibit honesty and integrity. The Board noted that the firm’s values are evident in all of the services provided to the
Funds.
Review of Specific Factors. The Directors continued their analysis by reviewing specific information on SIA and
the Funds and specific terms of the Agreements, including the following.
Investment Performance. The Directors
reviewed investment performance of each Fund for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, both on an absolute basis and on a comparative basis to indices and mutual
funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to their stated objectives and strategies on a comparable basis with funds with
similar objectives and strategies.
Fees and Expenses. The Directors noted that the Funds pay SIA a monthly fee and SIA
is responsible for all of the Funds’ expenses, except fees paid under a distribution plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class S shares of Sit Dividend Growth Fund and Sit Global Dividend Growth
Fund, interest, brokerage commissions and transaction charges and certain extraordinary expenses. The Directors reviewed fees paid in prior years (both before and after the voluntary waiver of fees by SIA with respect to certain funds) and the
current fees to be paid under the Agreements.
The Directors reviewed the average and median expense ratios of mutual funds
within the same investment category for each Fund. The Directors noted that each Fund’s total expense ratio compares favorably to the total expense ratios of other no-load funds within the Fund’s Morningstar category, and are lower than
the average total expense ratio for the full Morningstar category. The Directors concluded that the fees paid by the Funds are reasonable and appropriate.
The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund’s assets, which included reviewing each Fund’s current
and historical assets and the likelihood and magnitude of future increases in the Fund’s assets. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds’ assets increase. However,
the Directors concluded that given the limited size of the Funds, negotiating a graduated fee structure for each Fund is unnecessary since it is unlikely that the size of the Funds will increase enough to justify a graduated fee schedule within the
near future.
The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA’s income
with respect to the management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate.
The Directors reviewed SIA’s investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients
of SIA, and recognized that the Funds’ expenses are borne by SIA except as noted above. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other SIA clients were appropriate and reasonable. The Directors
also concluded that SIA’s profit margin with respect to the management of the Funds was appropriate.
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The Directors discussed the extent to which SIA receives benefits from the relationship
with the Funds such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Board concluded that any benefits SIA receives from its relationship with the Funds are well
within industry norms and are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable.
Non-Advisory Services. The Directors considered the quality of non-advisory services which SIA provides to the Funds (and their
shareholders) and the quality and depth of SIA’s non-investment personnel who provide such services. Directors concluded that the level of such services and the quality and depth of such personnel are consistent with industry standards.
Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds, and concluded that
both are consistent with industry standards.
Based on these conclusions, without any single conclusion being dispositive, the
Directors determined that renewal of the Agreements was in the interest of each Fund and its shareholders.
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SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
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SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |
Semi-Annual Report December 31, 2011 INVESTMENT ADVISER INDEPENDENT
REGISTERED PUBLIC Sit Investment Associates, Inc. ACCOUNTING FIRM 3300 IDS Center KPMG LLP Minneapolis, MN 55402 Minneapolis, MN CUSTODIAN LEGAL COUNSEL The Bank of New York Mellon Dorsey & Whitney LLP One Wall Street Minneapolis, MN New York,
NY 10286 TRANSFER AGENT AND DISBURSING AGENT BNY Mellon Investment Servicing (US) Inc. 4400 Computer Drive Westborough, MA 01581 [GRAPHIC] Sit Mutual Funds 1-800-332-5580 www.sitfunds.com SIT 12-31-11STOCK
| Item 2: |
Code of Ethics. Not applicable to Semi-Annual Report. |
| Item 3: |
Audit Committee Financial Expert. Not applicable to Semi-Annual Report. |
| Item 4: |
Principal Accountant Fees and Services. Not applicable to Semi-Annual Report. |
| Item 5: |
Audit Committee of Listed Registrants. |
Not applicable to open-end investment companies.
| Item 6: |
Schedule of Investments. |
The schedule of
investments is included as part of the report to shareholders filed under Item 1 of this Form.
| Item 7: |
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to open-end investment companies.
| Item 8: |
Portfolio Managers of Closed-End Management Companies. |
Not applicable to open-end investment companies.
| Item 9: |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to open-end investment companies.
| Item 10. |
Submission of Matters to a vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
| Item 11: |
Controls and Procedures - |
(a) Based on
their evaluation of the Registrant’s Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant’s Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule
30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is
communicated to the Registrant’s management, as appropriate, to allow timely decisions regarding required disclosure.
b) There were no
changes in the Registrant’s internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to
materially affect, the Registrant’s internal control over financial reporting.
(a) The following exhibits are
attached to this Form N-CSR:
(2) A separate certification for each principal executive and principal financial officer of the registrant as
required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).
(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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| Sit Mutual Funds, Inc. |
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| By (Signature and Title) |
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/s/ Paul E. Rasmussen |
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Paul E. Rasmussen |
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Vice President, Treasurer |
Date February 29, 2012
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.
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| By (Signature and Title) |
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/s/ Paul E. Rasmussen |
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Paul E. Rasmussen |
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Vice President, Treasurer |
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| Date February 29, 2012 |
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| By (Signature and Title) |
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/s/ Roger J. Sit |
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Roger J. Sit |
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Chairman |
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| Date February 29, 2012 |
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