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Fourth Quarter Markets Review

Global equities performed well in 2013, as aggressive monetary policy by the world’s central banks has, to this point, been enough to overcome a sluggish period for corporate earnings growth amid tepid expansion in the global economy.

U.S. equities’ performance in 2013 was the strongest performance, by most measures, in 16 years.  Higher market valuations and the potential for rising interest rates may slow the market’s momentum.

As a result of the Federal Reserve’s announcement that it will reduce the current bond buying programs, yields for intermediate and long Treasury maturities rose +0.3% to 0.4% in the fourth quarter of 2013 and rose over +1.0% for the year.  We expect short maturities to remain extraordinarily low throughout 2014.

2013 Year-End Distribution Amounts


Sit Mutual Funds distributed 2013 net realized capital gains and income to shareholders (of record on December 17th) on December 18, 2013. For distribution amounts for the year 2013, please view the Distribution Table.

Manage Risk With Asset Allocation


Asset allocation is a very important part of risk management within an investment portfolio. By investing in multiple asset classes, such as stocks, bonds, real estate, etc., that do not have closely correlated returns, investors can lower the variability of the returns that their portfolio experience over time. After an allocation method has been selected, periodically rebalancing the portfolio becomes an integral component to this process.

Through different allocation and diversification strategies, it may be possible to create portfolios with reduced risk (as measured by return variability) that can produce more consistent returns. For example, the S&P 500® Index, which is often used as a proxy for U.S. large cap stocks, fluctuated in annual returns from a low of -37.00% (2008) to a high of 26.47% (2009) for the five years ended December 31, 2012, while the Barclays U.S. Aggregate Bond Index, a proxy for the U.S. taxable bond market, only fluctuated between +4.22% (2012) and +7.84% (2011) over the same time period. During the calendar year of 2008, a portfolio comprised of holdings from both indices would have experienced a smaller decline than one made up entirely of the S&P 500 Index. In 2012, investing only in bonds (as defined by the Barclays U.S. Aggregate Bond Index) would have produced a positive return of 4.22%, but adding stocks to the equation would have increased the return on a portfolio for that year.


Asset Allocation


Read the full article "Manage Risk With Asset Allocations".



April 19, 2014

The Sit Mutual Funds are managed by Sit Investment Associates, Inc., which has been operating under the highest ethical and professional standards since it was founded in 1981 by Eugene C. Sit. We maintain an uncompromising commitment and adherence to our investment philosophy and style, while continually seeking ways to enhance our investment process.

Eugene Sit

Read about Sit Investment Associates & Sit Mutual Funds founder Eugene Sit.

Good Friday Holiday

In observance of Good Friday, the Sit Mutual Funds offices will be closed on Friday, April 18th. Due to the close of the New York Stock Exchange on Good Friday, transactions received after 3 p.m. Central Time on April 17th, will be processed on April 21st. Sit investor services representatives will resume taking calls on Monday, April 21st at 7:30 a.m., Central Time.




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Important Legal Information

The Sit Mutual Funds referred to in this site are offered and sold only to persons residing in the United States, and are offered by Prospectus only. By using this site you agree to our Terms of Use. Information in this site does not constitute an offer to sell, or a solicitation of an offer to buy shares of any Sit Mutual Funds. Shares of the Sit Mutual Funds will not be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Mutual fund investing involves risk. Loss of principal is possible. For more information on any of our Funds, download a Prospectus from this site or call 800-332-5580 to have one sent to you. The Prospectus contains important information about a fund's investment objectives, risks, and charges and expenses, and should be read carefully before investing.
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