Sit Quality Income Fund

Sit Mutual Funds has added a new fixed-income investment product to its mutual funds family that now total twelve.  The Sit Quality Income Fund debuted on December 31, 2012.  The Fund is a short-term, investment-grade, taxable bond fund that compliments the rest of the Sit Family of Funds.

Although new, the Fund is managed by the same experienced professionals who have managed the Sit U.S. Government Securities Fund for years.  The Sit Quality Income Fund’s management team consists of Mike Brilley, Chief Fixed Income Officer, Bryce Doty, Senior Portfolio Manager, Mark Book, Portfolio Manager and Chris Rasmussen, Portfolio Manager. 

Sit Quality Income Fund will focus on income as a primary source of return and safety of principal, which are objectives shared with the other Sit fixed-income products.  The firm believes that income provides the majority of a bond’s return.  To achieve its objectives, the Fund will invest at least 50% of its assets in government securities, e.g. Treasuries and mortgage pass-through securities issued by government agencies such as the Government National Mortgage Association (GNMA or “Ginnie Mae”), the Federal National Mortgage Association (“FNMA or “Fannie Mae”), and the Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”).  The balance of the Fund’s assets will be invested in investment-grade debt securities issued by corporations and municipalities, along with mortgage and other asset-backed securities.  The dollar-weighted average rating for the securities in the portfolio is expected to be “A” or better. Read more