Sit Municipal Return Plus

(as of June 30, 2020)  |   Printable Fact Sheet  

Strategy
  • Objective is to capitalize on persistent inefficiencies in the closed-end fund market, while providing diversification to a traditional fixed income portfolio
  • Investment focus is closed-end funds which invest in tax-free municipal fixed income securities.
  • Strategy seeks to maximize total return by analyzing every closed-end fund at the level of its individual holdings, management skill and consistency, and price to net asset value (NAV)
Consistent Yield Returns

Composite Performance (%)
Annualized Returns
3 Month1 Year3 Year5 Year10 Year
Sit Municipal Return Plus (Gross)
3.21
3.18
4.36
6.58
6.58
Sit Municipal Return Plus (Net)
3.11
1.21
3.37
5.63
5.45
Bloomberg Barclays Municipal Index
2.72
4.45
4.22
3.93
4.22

1 Year

3 Year

5 Year

10 Year
eVestment Percentile Rank1
64
18
1
2
Investment Style

Portfolio Characteristics
Sit Municipal Return PlusBloomberg Barclays Municipal Index
Yield to Worst:4.8%1.5%
Duration:10.4 Yr.4.8 Yr.
Avg. Quality:AAA3
Alpha (5 Yr.):0.4
Alpha (10 Yr.):-0.9
Quality Ratings (%)
AAA0.0
AA11.8
A78.7
BBB8.4
Less than BBB0.0
Non-Rated0.0
Other/Cash1.2

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.

Sit Investment Associates, Inc.
Municipal Return Plus 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.Bloomberg Barclays Municipal Bond IndexAnnual Performance Results CompositeComposite Dispersion
GrossNet
201812,196.2 29.827.7%3.4%1.28%-5.78%-6.16%0.04%
201713,340.8 18.617.6%3.3%5.45%8.51%7.91%N/A
201612,668.9 20.218.4%3.4%0.25%3.27%2.69%N/A
201513,350.6 18.519.3%3.4%3.30%8.25%7.16%N/A
201413,505.0 44.319.8%3.7%9.05%20.00%18.13%N/A
201313,103.3 37.319.9%4.0%-2.55%-11.17%-11.55%N/A
201213,081.6 27.018.4%3.7%6.78%12.06%10.71%N/A
201110,895.1 39.5113.2%4.6%10.70%21.46%18.93%N/A
20109,873.4 19.6117.9%6.3%2.38%5.20%4.35%N/A
20098,694.6 24.0117.4%5.9%12.91%53.95%51.26%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, 2017 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 Taxable Total Return composite has been examined  for the period January 1, 2017 through December 31, 2017 by ACA Performance Services, LLC 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 Taxable Total Return Composite was created December 31, 1987.    Taxable Total Return Composite contains fully discretionary fixed income accounts and for comparison purposes is measured against the Bloomberg Barclays 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 Barclays 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.  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 performance was calculated using the highest fee applicable annual management fee of 0.40% applied quarterly.  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.  Prior to April 1, 2006, SIA uses SunGard Portfolio One which uses an aggregate portfolio method which appropriately uses an Average Capital Balance (ACB) and an Internal Rate of Return (IRR) based on a discounted cash flow between revaluations for significant external cash flows.  Periods are geometrically linked together.  Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

On prior reports and asset-weighted standard deviation was presented and net of fees returns were calculated using the average actual management fee.

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.  Prior to 10/1/2016, the investment management fee schedule for the composite was 0.40% on the first $20 million, 0.30% on the next $30 million, 0.25% on the next $50 million, and negotiable over $100 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.