Taxable Intermediate Duration (Government/Corporate)

Sit Taxable Intermediate Duration (Government/Corporate)

(as of March 31, 2023)

Description

  • We seek consistent attainment of superior risk-adjusted returns using a conservative approach which emphasizes 1) investment grade securities 2) superior income advantage to peers and benchmarks and 3) significant stability of principal.
  • Particular focus on structurally inefficient, underfollowed and misunderstood sectors and securities offering superior relative value.
  • Incorporates Sit’s ‘Best Ideas’ across domestic taxable fixed income, within a duration range of two to five years.

Portfolio Characteristics

  Sit Taxable Intermediate Duration (Gov’t/Corp) Bloomberg Intermediate Gov’t/Credit Index
Yield to Worst: 5.1% 4.3%
Duration: 4.3 Year 3.9 Year
Average Quality: AAA AAA
Alpha (5 Year): 0.6  
Alpha (10 Year): 0.9  

 

Style Large Blend 300x270

Composite Performance (%)

    Annualized Returns
  3 Month 1 Year 3 Year 5 Year 10 Year
Sit Taxable Intermediate Duration (Gov’t/Credit) (Gross) 2.50 -2.23 -0.29 1.99 2.19
Sit Taxable Intermediate Duration (Gov’t/Credit) (Net) 2.41 -2.57 -0.64 1.64 1.82
     Bloomberg Intermediate Gov’t/Credit Index 2.33 -1.66 -1.28 1.40 1.32
  1 Year 3 Year 5 Year 10 Year
eVestment Percentile Rank1 78 27 7 4

1) eVestment – Peer rankings represent percentile rankings which are based on monthly gross of fee returns and reflect where the Sit Investment composite returns fall within the indicated eVestment Alliance, LLC (“eVestment”) universe.  eVestment provides the institutional investment database which consists of institutional managers, investment consultants, plan sponsors and other similar financial institutions reporting on investment products.  Performance figures are provided to eVestment by individual investment management firms for informational purposes only.  eVestment does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.  Additional information regarding eVestment rankings is available on eVestment’s website.  This presentation is intended for institutional investor use only.

Investing involves risk; principal loss is possible.  There is no guarantee the Composite’s investment objectives will be achieved, and the market value of securities held by the Composite may fall or fail to rise.

Sector allocations (as % of market value) and portfolio characteristics may change at any time and are not investment recommendations.

Duration is a volatility measure for bonds that reflects how a bond’s price will change as interest rates change.

Average Quality reflects the average of the individual security ratings assigned by Moody’s Standard & Poor’s and Fitch.

Sector Distribution (%)

Taxable Municipals 29.5
CMO’s 27.3
Mortgage Pass Throughs  13.2
Treasury 9.7
Industrials 7.4
Finance 4.6
Utilities    4.0
Federal Agency 1.4
Closed-End Bond Funds 1.0
Other Sectors 0.5
Cash 1.3

Sit Investment Associates Inc. Taxable Intermediate Duration (Government/Corporate)

Composite GIPS Report
Year End Total Firm Assets (millions) Composite Assets (USD) (millions) Number of Accounts Composite 3-Yr. Standard Dev. Benchmark 3-Yr. Standard Dev. Bloomberg Intermediate Gov’t/Credit Bond Index Annual Performance Results Composite Composite Dispersion
Gross Net
2022 14,218.1    706.6    12 3.7% 3.8% -8.23% -8.22% -8.55% 1.60%
2021 16,385.5 744.4 11 2.3% 2.3% -1.44% 0.71% 0.36% 0.68%
2020 14,371.1 445.1 9 2.2% 2.3% 6.43% 6.97% 6.61% 1.42%
2019 13,274.3 371.7 8 1.9% 2.0% 6.80% 6.44% 6.08% 0.24%
2018 12,196.2 311.8 7 1.8% 2.1% 0.88% 1.80% 1.45% 0.96%
2017 13,340.8 302.8 7 1.8% 2.1% 2.14% 3.26% 2.90% 0.44%
2016 12,668.9 303.2 7 1.9% 2.2% 2.08% 2.30% 1.90% 0.32%
2015 13,350.6 318.1 7 1.9% 2.1% 1.07% 2.60% 2.19% 0.37%
2014 13,505.0 304.6 7 1.8% 1.9% 3.13% 5.40% 4.99% 1.04%
2013 13,103.3 284.5 8 1.8% 2.1% -0.86% -0.46% -0.86% 0.77%
2012 13,081.6 313.5 10 1.5% 2.2% 3.89% 5.76% 5.34% 0.52%

Sit Investment Associates, Inc. claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Sit Investment Associates, Inc. has been independently verified for the period January 1, 2017 to December 31, 2021 by ACA Performance Services, for the period January 1, 2007 to December 31, 2016 by Ashland Partners & Company LLP and for the period January 1, 1997 through December 31, 2006 by KPMG LLP. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards.

The creation and inception date of the Taxable Intermediate Duration Composite are December 31, 1995. Taxable Intermediate Duration Composite contains fully discretionary accounts and for comparison purposes is measured against the Bloomberg Intermediate Government/Credit Bond Index. Value is achieved primarily through rotation of sector weightings and individual security selection. Gradual shifts in portfolio duration are made within a range of two to five years. The Bloomberg Intermediate Government/Credit Index includes securities in the intermediate maturity range of the Government and Credit Indices. The Government Index includes treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using the highest fee applicable annual management fee of 0.35% applied quarterly. Prior to 10/1/2016, the highest applicable annual management fee was 0.40%. The annual composite dispersion presented is an equal-weighted standard deviation calculated for the accounts in the composite the entire year using gross-of-fees returns. Beginning April 1, 2006, SIA calculates a true Time Weighted Return (TWR) for each portfolio within the composite and asset weights their returns to come up with a composite return. Periods are geometrically linked together. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request

Sit Investment Associates, Inc. is an independent registered investment adviser which includes the following subsidiaries: Sit Investment Fixed Income Advisors, Inc.; and Sit Investment Fixed Income Advisors II, Inc. On December 31, 2007, Sit/Kim International Investment Associates, Inc. and Sit/Kim International Investment Associates II, LLC were liquidated into Sit Investment Associates, Inc. Prior to 2000, Sit Investment Associates, Inc. and Sit/Kim International Investment Associates, Inc. issued separate GIPS reports, including disclosure of each entity’s assets under management. Beginning in 2000 the two entities issued a combined GIPS report to reflect the entities’ current operational and management affiliation. Total assets for all years presented in the table above reflect the combined total assets of all subsidiaries. A list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds are available upon request.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using the highest fee applicable annual management fee of 0.35% applied quarterly. Prior to 10/1/2016, the highest applicable annual management fee was 0.40%. The annual composite dispersion presented is an equal-weighted standard deviation calculated for the accounts in the composite the entire year using gross-of-fees returns. Beginning April 1, 2006, SIA calculates a true Time Weighted Return (TWR) for each portfolio within the composite and asset weights their returns to come up with a composite return. Periods are geometrically linked together. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.

The investment management fee schedule for the composite is 0.35% on the first $10 million, 0.25% on the next $10 million and 0.20% on amounts over $20 million. Actual investment advisory fees incurred by clients may vary. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. Past performance is not indicative of future results.

The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. For purposes of this calculation, gross-of-fees composite returns were used.

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Past performance is not indicative of future results.