Taxable Total Return

Sit Taxable Total Return

(as of September 30, 2022)

Description

  • We seek conistent attainment of superior risk-adjusted returns using a conervative approach emphasizing 1) investment grade securities 2) superior income advantage to peers and benchmark 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.

Portfolio Characteristics

  Sit Taxable Total Return Bloomberg Agg. Bond Index
Yield to Worst: 5.7% 4.8%
Duration: 5.8 Year 6.2 Year
Average Quality: AAA AAA
Alpha (5 Year): 1.2  
Alpha (10 Year): 1.4  
Style Large Growth graph. x access is style from value to growth, y access is cap size from small to large - green square indicates large growth in top right square

Composite Performance (%)

  Annualized Returns
3 Month 1 Year 3 Year 5 Year 10 Year
Sit Taxable Total Return (Gross) -4.63 -13.30 -1.01 1.13 2.27
Sit Taxable Total Return (Net) -4.72 -13.61 -1.36 0.78 1.89
     Bloomberg Aggregate Bond Index -4.75 -14.60 -3.26 -0.27 0.89
  1 Year 3 Year 5 Year 10 Year
eVestment Percentile Rank1 15 3 4 3

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 27.2
CMOs 17.5
Mortgage Pass Throughs 12.0
Finance 11.4
Treasury 10.0
Closed-End Bond Funds 8.5
Industrials 7.2
Utilities 2.7
Federal Agency 2.2
Other Sectors 1.4
Cash 0.0
   

Sit Investment Associates, Inc. Taxable Total Return

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 Aggregate Bond Index Annual Performance Results Composite Composite Dispersion
Gross Net
2021 16,385.5 866.0 12 3.6% 3.4% -1.54% 2.02% 1.67% 0.50%
2020 14,371.1 827.6 11 3.7% 3.4% 7.51% 9.24% 8.86% 0.60%
2019 13,274.3 737.3 11 2.5% 2.9% 8.72% 9.13% 8.76% 0.21%
2018 12,196.2 638.3 11 2.5% 2.8% 0.01% -0.33% -0.67% 0.36%
2017 13,340.8 650.8 11 2.6% 2.8% 3.54% 5.71% 5.35% 0.34%
2016 12,668.9 593.9 11 2.8% 3.0% 2.65% 3.53% 3.14% 0.36%
2015 13,350.6 561.1 11 2.8% 2.9% 0.55% 1.64% 1.24% 0.20%
2014 13,505.0 522.8 10 2.5% 2.6% 5.97% 7.66% 7.24% 0.19%
2013 13,103.3 495.2 11 2.4% 2.7% -2.02% -0.73% -1.13% 0.57%
2012 13,081.6 499.8 12 2.0% 2.4% 4.21% 6.84% 6.42% 0.44%

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.

Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The Taxable Total Return composite has had a performance examination for the periods January 1, 2017 through December 31, 2021 by ACA Performance Services and for the period January 1, 2007 through December 31, 2016 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

The creation and inception date of the Taxable Total Return Composite are December 31, 1987. Taxable Total Return Composite contains fully discretionary fixed income accounts and for comparison purposes is measured against the Bloomberg Aggregate Bond Index. The composite contains portfolios generally emphasizing investing in taxable bonds. 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 Aggregate Bond Index is a broad-based benchmark that measures the investment grade fixed income market.

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. The management fee for the Sit Total Return Bond Fund, LLC of 0.38% on the first $50 million and 0.28% on amounts over $50 million. There is also a 0.05% administrative fee on all asset. The total expense ratio for period ended September 30, 2021 was 0.40%. 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. 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.