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Sit Quality Income Fund
Ticker: SQIFX
Information reported as of September 30, 2024
Fund Details
| Inception Dates | |
| S Class | 12/31/2012 |
| Y Class | 3/30/2022 |
| Fund Assets | |
| S Class | $28.3M |
| Y Class | $95.2M |
| Average Maturity: | 17.3 Years |
| Duration to Est. Avg. Life: | 2.6 Years |
| Tickers | |
| S Class | SQIFX |
| Y Class | SQIYX |
| CUSIP Numbers | |
| S Class | 82979K‑50‑6 |
| Y Class | 82980B‑30‑5 |
| Minimum Investment Amounts | |
| S Class | $5,000 |
| Y Class | $1,000,000 |
| Minimum IRA Investment Amount | |
| S Class | $2,000 |
| Y Class | $1,000,000 |
| Gross Expense Ratios | |
| S Class | 0.91% |
| Y Class | 0.66% |
| Net Expense Ratios | |
| S Class | 0.81% |
| Y Class | 0.56% |
Expense ratios are as stated in the prospectus dated August 1, 2023. Sit Investment Associates, Inc. (the “Adviser”) has agreed to reduce the Class S management fee to 0.81% and the Class Y management fee to 0.56% effective April 1, 2022 through March 31, 2025. This waiver cannot be terminated without approval by the Fund’s Board of Directors. After March 31, 2025, the Adviser may elect to extend, modify or terminate the fee waiver. |
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Average Annual Returns
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. Performance data current to the most recent month-end is available. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do no reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund’s performance. Returns for periods greater than one year are compounded average annual rates of return.
Fund Objectives and Strategy
The Sit Quality Income Fund objective is to provide high current income and safety of principal by investing, under normal market conditions, at least 80% of its assets in debt securities issued by the U.S. government and its agencies, debt securities issued by corporations, mortgage and other asset-backed securities.
The Fund invests at least 50% of its assets in U.S. government debt securities, which are securities issued, guaranteed or insured by the U.S. government, its agencies or instrumentalities. The balance of the Fund’s assets will be invested in investment-grade debt securities issued by corporations and municipalities, and mortgage and other asset-backed securities. Investment-grade debt securities are rated at the time of purchase within the top four rating categories by a Nationally Recognized Statistical Rating Organization or of comparable quality as determined by the Adviser. The Fund’s dollar-weighted average portfolio quality is expected to be “A” or better.
Risk-Reward Profile
The Sit Quality Income Fund has lower risk and lower reward potentials.
Investment Style
The Fund invests in high-quality, short-duration bonds.
Investment Adviser
The Sit Mutual Funds’ investment adviser is Sit Investment Associates, Inc. It is an employee-owned firm founded in 1981 in Minneapolis, Minnesota and currently manages $16.6 billion. The firm’s sole business is investment management.
Portfolio Management
Notes
Performance listed above is current to the most recent quarter-end. Performance data current to the most recent month-end can be found on the Performance Summary page.
Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund’s investment objectives will be achieved. Fixed-income securities present issuer default risk. Securities held by the Fund may not be backed by the full faith and credit of the United States. Call risk exists as a fixed-income security may be called, prepaid or redeemed before maturity and that similar yielding investments may not be available for purchase. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. An increase in interest rates may lower the value of the fixed-income securities held by the Fund. Declining interest rates may compel borrowers to prepay mortgages and debt obligations underlying the mortgage-backed securities owned by the Fund. The proceeds received by the Fund from prepayments may be reinvested at interest rates lower than the original investment, thus resulting in a reduction of income to the Fund. Rising interest rates could reduce prepayments and extend the life of securities with lower interest rates, which may increase the sensitivity of the Fund’s value to rising interest rates. There may be limited liquidity for certain fixed-income securities. The Fund may hold securities for which prices from pricing services may be unavailable or are deemed unreliable. More information on these risks considerations, as well as information on other risks to which the Fund is subject, as futures contacts and options, are included in the Fund’s prospectus. The prospectus may be obtained by calling Sit Mutual Funds at 1-800-332-5580 or downloaded from this website. Read the prospectus carefully before investing. Investment return and principal value of an investment will fluctuate so that an investor’s shares when redeemed may be worth more or less than their original cost.
Fund holdings, sector allocations (as % of market value) and portfolio characteristics may change at any time and are not investment recommendations. The Bloomberg 1-3 Year U.S. Government/Credit Index is an unmanaged index of Treasury or government agency securities and investment grade corporate debt securities with maturities of one to three years. The returns include the reinvestment of income and do not include any transaction costs, management fees or other costs. It is not possible to invest directly in an index. Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the market value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rates investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by the Adviser and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.