Sit Balanced

(as of June 30, 2022)

Description

  • We seek to provide long-term capital appreciation, preservation of principal and provide regular income by investing in a diversified portfolio of stocks and bonds.
  • To achieve long-term capital appreciation, the strategy invests in high-quality growth companies that have the potential to increase earnings at a faster rate than the representative economy and market index purchased at reasonable valuation levels.
  • To achieve the objectives of preservation of principal and providing regular income, the strategy invests in investment grade mortgage-backed securities, U.S. Treasuries, asset-backed securities, corporate debt and taxable municipal securities.

Equity Investment Style

Fixed Income Investment Style

Composite Performance (%)
Annualized Returns
3 Month1 Year3 Year5 Year10 Year
Sit Balanced (Gross)
-13.15
-14.06
7.33
8.42
9.36
Sit Balanced (Net)
-13.35
-14.86
6.32
7.38
8.31
S&P 500® Index
-16.10
-10.62
10.60
11.31
12.96
Bloomberg U.S. Aggregate Bond Index
-4.69
-10.29
-0.93
0.88
1.54
Total Return by Calendar Year (%)
20142015201620172018201920202021YTD 2022
Sit Balanced (Gross)
10.25
3.15
5.74
18.95
-1.64
21.85
21.63
18.28
-20.05
Sit Balanced (Net)
9.18
2.13
4.70
17.81
-2.62
20.69
20.47
17.15
-20.41
S&P 500® Index
13.69
1.38
11.96
21.83
-4.38
31.49
18.40
28.71
-19.96
Bloomberg U.S. Aggregate Bond Index
5.97
0.55
2.65
3.54
0.01
8.72
7.51
-1.54
-10.35
Balance Sheet/Profitability - Medians (%)
Return on Invested CapitalFree Cash Flow MarginNet Debt/Capital
Sit Balanced
16.0
18.0
30.2
S&P 500® Index
12.4
12.5
35.8

Performance figures for the latest period are preliminary and subject to change. Past performance is not indicative of future results. Returns are calculated on a time-weighted total return basis, include the reinvestment of all income, and returns for periods greater than one year are annualized. The information above is supplemental to and complements the attached composite presentation. The account information set forth above is for the representative portfolio and is provided for illustrative purposes 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.

Top Five Equity Holdings
Company Name% of Securities
Apple, Inc.4.7
Microsoft Corp.4.2
Alphabet, Inc. 3.7
UnitedHealth Group, Inc.2.5
Amazon.com, Inc.2.5
Top Five Fixed Income Holdings
Issue Name% of Securities
U.S. Treasury Inflation Bond, 0.13%, 1/15/233.2
U.S. Treasury Note, 1.88%, 2/28/271.7
JP Morgan Trust, 1.43%, 7/25/520.7
JP Morgan Trust, 1.63%, 8/25/520.7
Oregon State Fac. Auth., 2.68%, 7/1/310.6
Portfolio Allocation (%)
Stocks60.3
Bonds35.3
Cash4.4
Portfolio Characteristics
Total Assets (Millions):$48.2
Number of Holdings:215
Inception Date:9/30/1981

Sit Investment Associates, Inc.
Balanced Composite
ANNUAL DISCLOSURE PRESENTATION

Year EndTotal Firm Assets (millions)Composite Assets (USD) (millions)Number of AccountsComposite 3-Yr. Standard Dev.S&P 500 Index 3-Yr. Standard Dev. (%)Bloomberg Aggregate Bond Index 3-Yr. Standard Dev. (%)S&P 500 IndexBloomberg Aggregate Bond IndexAnnual Performance Results CompositeComposite Dispersion
GrossNet
202116,385.5 76.9111.7%17.2%3.4%28.71%-1.54%18.28%17.15%N/A
202014,371.1 61.2112.3%18.5%3.4%18.40%7.51%21.63%20.47%N/A
201913,274.3 35.817.7%11.9%2.9%31.49%8.72%21.85%20.69%N/A
201812,196.2 32.916.9%10.8%2.8%-4.38%0.01%-1.64%-2.62%N/A
201713,340.8 27.716.2%9.9%2.8%21.83%3.54%18.95%17.81%N/A
201612,668.9 24.616.7%10.6%3.0%11.96%2.65%5.74%4.70%N/A
201513,350.6 23.117.0%10.5%2.9%1.38%0.55%3.15%2.13%N/A
201413,505.0 16.916.5%9.0%2.6%13.69%5.97%10.25%9.18%N/A
201313,103.3 15.317.8%11.9%2.7%32.39%-2.02%19.43%18.29%N/A
201213,081.6 12.419.3%15.1%2.4%16.00%4.21%11.01%9.93%N/A

N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

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. The verification report(s) is/are available upon request. 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. Verification does not provide assurance on the accuracy of any specific performance report.

The creation and inception date of the Balanced Composite are created September 30, 1981. Balanced Composite contains fully discretionary balanced accounts and for comparison purposes is measured against the S&P 500 Index and the Bloomberg Aggregate Bond Index. The composite contains portfolios including equities and fixed income in proportions determined by the client. The equity portfolios follow the Large Cap Growth parameters wherein portfolios generally emphasizing the common stock of companies having a market capitalization of greater than or equal to $5 billion at the time of purchase. The portfolios in the composite do not use leverage and generally hold between 70 to 90 domestic equity securities. The fixed income portion is generally comparable to the Taxable Total Return strategy wherein 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.

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 returns for all years were updated to reflect the appropriate highest fee for each year. Net of fee performance was calculated using the highest fee applicable annual management fee of 1.00% applied quarterly. 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 0.75% on the first $10 million, 0.70% on the next $10 million, 0.65% on the next $10 million, 0.60% on the next $10 million, 0.55% on the next $10 million, and negotiable on the amounts over $50 million. The management fee for the Sit Balanaced Fund is 0.80% with an expense ratio of 0.80%. 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.