Sit Investment Associates provides quality investment management expertise in domestic and international growth equities and fixed income. Investment management services are offered across four channels: Separate Accounts, Private Investment Funds, Collective Investment Funds, and Mutual Funds. We take pride in serving as a true extension of our clients’ operations, providing highly individualized service in an increasingly challenging economic and financial environment.

We view investing as the practice of applying a consistent philosophy and decision-making process over meaningful time periods. In fact, the firm’s success is built on long-term client relationships, which in turn are built on a foundation of trust, commitment, understanding, and expertise.

The firm is owned by its seasoned investment professionals, who work hands-on in every aspect of the investment process and client service. We are 100 percent committed to achieving clients’ investment objectives, because our clients’ success results in our success.

Global Investment Outlook and Strategy

August 8, 2019

Resilient U.S. economic growth, better-than-expected calendar 2Q19 corporate earnings, a federal budget compromise, and easing global monetary policy helped sustain upward momentum in U.S. stocks in July.  Dividend paying stocks and beneficiaries of lower interest rates generally outperformed the overall equity market for the month as global bond yields continued to decline.  More recently, however, investors have been rattled by the lack of consensus among the Federal Open Market Committee on the need for interest rate cuts as well as a U.S.-China trade truce that proved short-lived, with President Trump threatening to impose a 10 percent tariff on an additional $300 billion in Chinese imports beginning September 1. Short-term U.S. Treasury yields increased modestly during July, while longer-term Treasury yields were generally unchanged. Second quarter 2019 real GDP surprised to the upside, growing at a seasonally-adjusted annualized rate of +2.1 percent quarter over quarter versus the consensus estimate of +1.8 percent. Despite mounting headwinds, the U.S. economy currently remains in solid shape and there are reasons to believe the expansion has more room to run based on enduring benefits from tax cuts and deregulation, rising productivity, accelerating wage growth, solid job growth, recovering retail sales growth, easing financial conditions, and growing global stimulus. Nonetheless, prudent risk management is crucial in the current volatile economic and geopolitical environment. The U.S.-China trade conflict remains a key binary risk going forward, but so does the upcoming October 31 deadline for the UK to negotiate a withdrawal agreement or risk immediately crashing out of the European Union.  Given the snapback in U.S. equity valuations – all the year-to-date market gains have been driven by multiple expansion – and accumulating global macro uncertainties, we continue to incrementally shift portfolio composition toward high-quality growth stocks with visible earnings progression and secular underpinnings, but also continue to opportunistically add to pro-cyclical growth stocks with compelling risk-reward profiles.

For more details, including a longer discussion of dividend growth stocks, please see Sit Investment Associates’ July 2019 Global Investment Outlook and Strategy paper. Click here: Global Outlook and Strategy (Adobe Acrobat) or e-mail us at: siainfo@sitinvest.com.

Barron’s 2018 Top Mutual Fund Families

Barron’s ranks Sit Mutual Funds a top mutual fund family for 2018.  See the rankings and learn how Sit Mutual Funds earned 7th place.

MMAF Has Awarded Over 17,000 Grants

Since its inception in 2005, Minnesotan’s Military Appreciation Fund (MMAF) has awarded over 17,000 grants totaling over $10.5 million to Minnesota military personnel and their families.   MMAF is a non-partisan, non-political 501(c)(3) non-profit corporation.  It is a statewide fundraising initiative by the citizens of Minnesota.  Its mission is to say “thanks” to Minnesota service members and their families by providing cash grants to those who are making sacrifices in the defense of our freedoms in combat zones around the world.

The tragedy of 9/11 compelled the late Eugene C. Sit, founder of Sit Investment Associates Inc., to create MMAF in order to thank and give back to Minnesota service members.    Sit Investment Associates Inc. continues to support the efforts of MMAF.

To donate and learn more about Minnesotans’ Military Appreciation Fund, please visit the website at www.thankmntroops.org.