Sit ESG Growth

(as of March 31, 2020)  |   Printable Fact Sheet  

Description
  • We seek growth opportunities with the objective of delivering superior long-term absolute and real returns by investing in companies that have strong environmental, social and corporate governance (ESG) practices.
  • We seek to deliver above-average returns with lower risk and better downside capture than the representative market index.
  • We invest 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.
Composite Performance (%)
Annualized Returns
3 Month1 Year3 Year
Sit ESG Growth (Gross)
-17.65
-4.89
5.19
Sit ESG Growth (Net)
-17.90
-5.86
4.13
MSCI World Index
-21.05
-10.39
1.92
S&P 500® Index
-19.60
-6.98
5.10
Total Return by Calendar Year (%)
2016*201720182019YTD 2020
Sit ESG Growth (Gross)
0.81
25.14
-6.47
27.61
-17.65
Sit ESG Growth (Net)
0.49
23.82
-7.42
26.42
-17.90
MSCI World Index
1.86
22.40
-8.71
27.67
-21.05
S&P 500® Index
3.82
21.83
-4.38
31.49
-19.60
*Due to the Composite’s inception date of 10/1/16, the 2016 calendar year returns of the Composite and its benchmarks reflect performance since 10/1/16.

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.

Balance Sheet/Profitability – Medians (%)
Return on Invested CapitalFree Cash Flow MarginNet Debt/Capital
Sit ESG Growth
14.1
11.3
22.3
MSCI World Index
8.5
8.2
29.9
S&P 500® Index
11.0
11.2
39.3
Top Ten Holdings
Company Name% of SecuritiesCompany Name% of Securities
Microsoft Corp.5.6Nestle SA, ADR2.6
Apple, Inc.3.6Alphabet, Inc.2.6
Iberdrola SA, ADR2.8Visa, Inc.2.5
Allianz SE, ADR2.7Facebook, Inc.2.5
Novartis AG, ADR2.7Verizon Communications, Inc.2.5
Investment Style

Upside vs. Downside Market Capture

Risk/Return Analysis

Portfolio Characteristics
Total Assets (Millions):$5.6
Number of Holdings:55
Wtd. Avg. Market Cap (Billions):$228.9
Median Market Cap (Billions):$60.7
Beta (vs. MSCI World Index):0.90
Inception Date:9/30/16

Weighted Average Market Cap is the average market capitalization of companies held by the Fund, weighted in proportion to their percentage of the Fund’s net assets.  Beta is a measure of a fund’s sensitivity to market movements.  The beta of the market is 1.00 by definition.  A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile.

Sit Investment Associates, Inc.
ESG Growth Composite
ANNUAL DISCLOSURE PRESENTATION

Year EndTotal Firm Assets (millions)Composite Assets (USD) (millions)Number of AccountsComposite 3-Yr. Standard Dev.Benchmark 3-Yr. Standard Dev.MSCI World Index (Net Div. Reinv.)Annual Performance Results CompositeComposite Dispersion
GrossNet
201812,196.2 5.41-8.71-6.47-7.42N/A
201713,340.8 5.7122.4025.1423.74N/A
2016*12,668.9 4.211.860.810.49N/A

N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.
* Partial Year from 10/1/2016 to 12/31/2016

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, 2018 by ACA Performance Services, LLC, 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.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.

The ESG Growth Composite was created on October 1, 2016.  ESG Growth Composite contains fully discretionary accounts, and for comparison purposes is measured against the MSCI World Index.  There is no minimum account size.  The composite contains portfolios generally emphasizing investment in companies that the Adviser believes have strong environmental, social and corporate governance (ESG) practices.  The portfolios invest primarily in common stocks of U.S. and foreign companies, primarily of large to medium capitalizations (companies with market capitalizations in excess of $ 2 billion). The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

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.  The firm maintains a complete list and description of composites, which is 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 were updated for all years to reflect the appropriate highest fee for each year.   Net of fee performance was calculated using the highest fee applicable annual management fee of 1.25% applied quarterly, for the period April 1, 2015 through September 30, 2017, and 1.00% applied quarterly, thereafter.  The annual composite dispersion presented is an equal-weighted standard deviation calculated for the accounts in the composite the entire year.  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 portfolios, calculating performance, and preparing compliant presentations are available upon request.

The investment management fee schedule for the composite is 0.80% on the first $10 million, 0.75% on the next $20 million, 0.65% on the next $20 million, and 0.50% on the amounts over $50 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.  The standard deviation is not presented for 2016 through 2018 because the monthly returns were not available.

Past performance is not indicative of future results.