Sit Taxable Return Plus

(as of September 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 investment grade, taxable 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 Taxable Return Plus (Gross)
2.94
5.69
5.20
7.25
6.19
Sit Taxable Return Plus (Net)
2.84
3.99
4.09
6.15
5.11
Bloomberg Barclays Aggregate Bond Index
0.62
6.98
5.24
4.18
3.64

1 Year

3 Year

5 Year

10 Year
eVestment Percentile Rank1
92
83
1
2
Investment Style

Portfolio Characteristics
Sit Taxable Return PlusBloomberg Barclays Aggregate Bond Index
Yield to Worst:6.8%1.2%
Duration:4.4 Yr.6.1 Yr.
Avg. Quality:AAAA
Alpha (5 Yr.):3.3
Alpha (10 Yr.):2.5
Quality Ratings (%)
AAA13.8
AA7.3
A32.5
BBB33.0
Less than BBB10.3
Non-Rated0.0
Other/Cash3.0

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.
Taxable 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.Barclays Aggregate Bond IndexAnnual Performance Results CompositeComposite Dispersion
GrossNet
201913,274.3 634.9173.7%2.9%8.72%17.85%15.97%0.68%
201812,196.2 509.8194.4%2.8%0.01%-4.24%-4.63%0.53%
201713,340.8 560.9184.7%2.8%3.54%9.05%7.82%0.36%
201612,668.9 504.9195.1%3.0%2.65%10.23%8.56%0.96%
201513,350.6 400.4165.5%2.9%0.55%2.65%2.14%0.68%
201413,505.0 390.3165.7%2.6%5.97%7.40%6.93%1.17%
201313,103.3 322.5155.8%2.7%-2.02%-2.33%-2.74%1.19%
201213,081.6 432.0165.1%2.4%4.21%15.94%13.56%1.09%
201110,895.1 342.0138.4%2.8%7.84%7.30%6.87%1.18%
20109,873.4 271.71414.1%4.2%6.54%15.28%13.42%1.13%

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, 2019 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 Plus composite has been examined for the period January 1, 2017 through December 31, 2019 by ACA Performance Services, LLC and for the period September 30, 1997 through December 31, 2016 by Ashland Partners & Company LLP.  The verification and performance examination reports are available upon request.

The Taxable Return Plus Composite was created September 30, 1997.  Taxable Return Plus Composite contains fully discretionary accounts and for comparison purposes is measured against the Barclays Aggregate Bond Index.  The composite contains portfolios generally emphasizing investing in closed-end bond funds.   Value is achieved through emphasis on domestic, investment-grade closed end bond funds which, over time, have an average market price 6% to 8% less than their NAV.  The 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 plus any applicable annual performance fee.   Prior to 2003, the performance fee reported was calculated based on a model fee using the standard performance fee schedule.  Beginning in 2003, the performance fee reported was calculated using the actual performance fee billed.  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 0.40%.  In addition, a performance fee equal to 20% of the difference between the Account’s total investment return for the calendar year (net of the management fee) and the total return of the Barclays Aggregate Bond Index for the year increased by 1%.   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.