Sit Mutual Funds will be offering three different investment seminars this winter. For content and dates information please visit the 2010 Seminar page.
Sit Mutual Funds do not have to pay out capital gains for tax year 2009. Portfolio Managers realized losses on select securities during the market downturn, which were sufficient to offset capital gains realized on others. Therefore, no short- or long-term capital gains have to be paid out by the Funds.
For more information as well as the year-end income estimates go to the Tax Information page.
Sit Mutual Funds' October 2009 performance returns are available. To view the results go to the Performance page.
Eugene Sit
1938 - 2008
October 2009 Financial
Markets in Review
After registering gains for seven consecutive months, it was not surprising that domestic and international equity markets consolidated in October. The S&P 500 Index finished the month down -1.9% while the MSCI EAFE Index declined -1.3%.
Municipal yields rose during October, as new issue supply increased and funds flow slowed. Longer maturity bonds and lower-rated credits underperformed during the month; however, their year-to-date returns remain strong.
Mutual Funds Operations More Transparent Than Hedge Funds
Investors are concerned these days about more than market performance. Tragic stories of portfolios damaged by investments in unethical hedge funds engaged in activities ranging from deceptive accounting to embezzlement are grabbing headlines. The vast majority of hedge funds are reputable and their clients need not worry, but for investors who prefer greater transparency in their investments, mutual funds may be the answer.
Mutual funds and hedge funds both pool investors’ money to be managed as a single portfolio, but there are significant differences between the two when it comes to features such as liquidity, reporting and investment constraints. Both investment vehicles have their place in the investment industry, but when headlines are filled with stories of Ponzi schemes, mutual fund shareholders can find an extra level of comfort in the required liquidity and transparency employed in their portfolios' administration.
