Sit Mutual Funds Tops Barron's 2016 Best Fund Families List
In its annual Best Fund Families issue, Barron's names Sit Mutual Funds as the top fund family. Barron's measured manager skill across five fund categories. The complete list of ranked fund families is available online.
Barron's Best Mutual Fund Families publication dated February 8, 2016. Sit Mutual Funds was ranked #1 in 2016. Barron's is a trademark of Dow Jones & Co., L.P. All rights reserved. Reprinted with permission.
Second Quarter Investment Outlook and Strategy
The U.S.economy is still the bright spot in a global economy where most other regions of the world are struggling. Although U.S. Growth is subdued, on a relative basis, it is the most attractive economy among major markets across the globe. As a result, there is focused attention on any sign of softness in the U.S. Our current forecast for 2016 U.S. Real GDP growth is +2%. Although the vacillation between weak and strong economic reports has caused some investors concern, we believe that the subdued page of growth remains on track. Consumer spending strengthened during the second quarter and is on track to growth at a quarterly annualized pace that could exceed +4% and will be a significant driver of growth for the quarter. The U.S. Dollar has retreated from its recent highs and stabilized and modestly lower levels, proving at least a temporary relief to U.S. Manufacturers. The UK's vote to leave the European Union (Brexit) has caused a flight to safety out of financial assets in Europe and many other parts of the world and into the U.S. If this investment flow continues, the U.S. Dollar will strengthen and again cause a headwind for manufactures in the U.S., along with other companies that have meaningful foreign operations. Net exports have been improving in recent months and contributed to upward revisions of first quarter GDP growth. Soft job reports in April and May were offset by a surprisingly strong June employment report. We expect the jobs number to continue to trend higher and move back toward the 200,000 level. This will be a key underpinning to support consumer spending and sustain the modest economic recovery. Inflation remains controlled.
At a minimum, the UK's decision to leave the European Union will leave the entire region in an extended period of political and economic uncertainty. The UK economy has already begun to lose some momentum ahead of the EU referendum, and the uncertainty associated with its exit could further dampen consumer spending and business investment. The decline in the British pound could benefit exporters and the domestic travel industry in the intermediate term, as well as mitigate preexisting deflationary pressures through higher import prices. Nonetheless, the weakness in the British pound, combined with a current account deficit near 7%, is particularly damaging to the economy if foreign investors stop funding the UK's need to borrow from abroad. Adding to the instability, S&P cut the UK's credit rating to AA from AAA. Economists are highly divided on the ultimate economic impact of the UK's exist given the large number of knowns. We believe the risk of a domino effect in the European Union, with other members calling for referendums of their own, is fairly unlikely.
To read Sit Investment Associates' full July 12, 2016 Global Investment Outlook and Strategy, download the .pdf version.
Sit ESG Growth Fund
The Sit ESG Growth Fund invests in companies with strong environmental, social and corporate governance policies. We have confidence in these ethically-operated, financially-strong companies that employ sustainable practices that positively impact the environment and society.
Sit Mutual Funds launched the Sit ESG Growth Fund on June 30, 2016.