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.
Third Quarter Investment Outlook and Strategy
Investor confidence recovered from uncertainty surrounding Britain’s vote to leave the European Union and the weak domestic growth experienced earlier in 2016. Investor focus has shifted from concerns about rising interest rates to the upcoming U.S. elections, but the market does not appear to be discounting a presidential winner or which political party will control Congress. Although policy specifics from both presidential candidates are scarce, we believe the election will have the largest implications for the health care, energy, and financials sectors. Equities are reasonably valued on an historical basis and cheap relative to bonds.
Treasury yields experienced a modest third-quarter increase as the yields flattened. Shorter maturities yields rose more than in longer maturities. A “risk on” environment typically causes safe-haven assets, such as Treasuries, to underperform as demand shifts to higher-yeilding products, but despite the increase in interest rates, all taxable sectors posted positive returns for the quarter except Treasuries. The tax-empt yield municipal bond yield curve rose during the quarter, with most of the movement occurring in September. The largest increases were at the both ends of the curve. For the quarter and the year (to date), bonds with lower credit quality ratings have generally outperformed higher rated bonds. Duration had a more meaningful impact on performance during the quarter than investment grate rating or sector allocation. Tax-exempt fund flows continued a 52nd consecutive week net inflow period to finish the third quarter.
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.