# EDGAR Filing Document

**Accession Number:** 0000356786
**File Stem:** 0001193125-23-044384
**Filing Date:** 2023-2
**Character Count:** 319693
**Document Hash:** 8ee05ab43a06391ce8c1710c71315e5f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-044384.hdr.sgml**: 20230222

**ACCESSION NUMBER**: 0001193125-23-044384

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 26

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230222

**DATE AS OF CHANGE**: 20230222

**EFFECTIVENESS DATE**: 20230222

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIT LARGE CAP GROWTH FUND INC
- **CENTRAL INDEX KEY:** 0000356786
- **IRS NUMBER:** 411414580
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03343
- **FILM NUMBER:** 23651125

**BUSINESS ADDRESS:**
- **STREET 1:** 3300 IDS CENTER 80 SOUTH 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402
- **BUSINESS PHONE:** 612-332-3223

**MAIL ADDRESS:**
- **STREET 1:** 3300 IDS CENTER 80 SOUTH 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT GROWTH & INCOME FUND INC
- **DATE OF NAME CHANGE:** 19940620

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NEW BEGINNING GROWTH FUND INC/NEW
- **DATE OF NAME CHANGE:** 19870907

## Series and Classes Contracts Data

### SIT LARGE CAP GROWTH FUND INC (Series ID: S000011803)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000032270 | SIT LARGE CAP GROWTH FUND INC | SNIGX           |

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

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**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

**Investment Company Act file number: 811-03343** 

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## Sit Large Cap Growth Fund, Inc.
**(Exact name of registrant as specified in charter)** 

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**80 South Eighth Street** 

**3300 IDS Center** 

**Minneapolis, MN 55402** 

**(Address of principal executive offices)** 

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**Paul E. Rasmussen, VP Treasurer** 

**Sit Mutual Funds, Inc.** 

**80 South Eighth Street** 

**3300 IDS Center** 

**Minneapolis, MN 55402** 

**(Name and address of agent for service)** 

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**Registrant's telephone number, including area code: (612) 332-3223** 

**Date of fiscal year end: June 30, 2023** 

**Date of reporting period: December 31, 2022** 

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Item 1: Reports to Stockholders

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## &nbsp;&nbsp;&nbsp;&nbsp; Semi-Annual Report
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**December 31, 2022** 

**Balanced Fund** 

**Dividend Growth Fund** 

**Global Dividend Growth Fund** 

**Large Cap Growth Fund** 

**ESG Growth Fund** 

**Mid Cap Growth Fund** 

**Small Cap Dividend Growth Fund** 

**Small Cap Growth Fund** 

**International Growth Fund** 

**Developing Markets Growth Fund** 

## Sit Mutual Funds

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Sit Mutual Funds STOCK FUNDS SEMI-ANNUAL REPORT **TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
|  [Chairman's Letter](#tx445807_1) | 2 |
|  **Fund Review and Schedules of Investments** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Balanced Fund](#tx445807_2) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Dividend Growth Fund](#tx445807_3) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Global Dividend Growth Fund](#tx445807_4) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Large Cap Growth Fund](#tx445807_5) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ESG Growth Fund](#tx445807_6) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Mid Cap Growth Fund](#tx445807_7) | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Small Cap Dividend Growth Fund](#tx445807_8) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Small Cap Growth Fund](#tx445807_9) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [International Growth Fund](#tx445807_10) | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Developing Markets Growth Fund](#tx445807_11) | 46 |
|  [Statements of Assets and Liabilities](#tx445807_12) | 50 |
|  [Statements of Operations](#tx445807_13) | 52 |
|  [Statements of Changes in Net Assets](#tx445807_14) | 54 |
|  [Financial Highlights](#tx445807_15) | 58 |
|  [Notes to Financial Statements](#tx445807_16) | 72 |
|  [Expense Example](#tx445807_17) | 79 |
|  [Additional Information](#tx445807_18) | 81 |

---

This document must be preceded or accompanied by a Prospectus.

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**CHAIRMAN'S LETTER** 

February 3, 2023

Dear Fellow Shareholders:

2022 was a challenging year for global equities, as central banks aggressively raised rates to combat surging inflation, thereby elevating recession fears. Consequently, the combination of reduced valuations and lower earnings expectations points to a better set-up for stocks as we enter the new year.

**Economic Summary** 

The U.S. economy has proven resilient, particularly in the second half of 2022, as consumer spending shifted to services from goods, sustained by job growth, excess savings, and credit expansion. According to Mastercard SpendingPulse, holiday spending climbed +7.6% year over year (vs. +8.5% in 2021), underpinned by a +15.1% increase in dining out (i.e., services). The Atlanta Fed's GDPNow model also predicts real GDP growth of +3.8% in 2022's fourth quarter, largely due to a solid contribution from consumer spending. The irony is that the buoyancy in spending is perpetuating high inflation, contributing to Fed hawkishness and, subsequently, raising the risk of a recession. Nonetheless, the post-pandemic era of price-insensitive "revenge spending," first on goods and then on services, has likely ended, as consumers have begun to balk at high prices. Moreover, banks are tightening lending standards, implying credit growth and the spending it supports will continue to slow. For now, still-solid job growth, about $1.1 trillion in excess savings, and a potential return to positive real wage growth as inflation eases may sustain spending.

Consumer inflation should decelerate meaningfully in 2023 but will likely still top +3.0% at year end, versus the Federal Reserve's (Fed) +2.0% target. Whereas headline inflation has steadily ebbed since July 2022 as energy prices fell, the core figure (which drives policy decisions) has stayed relatively choppy. However, core goods inflation (27% of core CPI) is diving, due to base effects, waning demand, and easing supply chain backups. This should increasingly counter the impact of still-climbing core services inflation. Moreover, declining home selling prices and new rents, which lead by 12 to 18 months, suggest rent of shelter (42% of core CPI) will peak by midyear and decline after that. Finally, wage gains have begun to moderate and recent declines in the jobs availability survey suggest wage growth will continue to slow.

The Fed has utilized the monetary policy equivalent of "shock and awe" since ditching its transitory inflation thesis, resulting in the most aggressive tightening since 1980. We anticipate the Fed will lift the target fed funds rate to 5% or 5.25% before pausing by midyear as inflation sufficiently ebbs. That said, the Fed asserts it will stay restrictive for longer to avoid repeating a mid-1970s policy error in which premature easing led to another bout of high inflation. It is unclear how much the Fed is jawboning to keep financial conditions tight (by capping stock and bond prices) versus genuine resolve, but

it does raise the specter it will be behind the curve again. While some still hope the Fed can "thread the needle" to achieve a soft landing, its track record is dismal. As a result, the broad consensus is a recession in 2023. However, all indications point to a comparatively mild downturn: there are no apparent private sector excesses; household and corporate balance sheets are in good shape; and labor market dynamics are favorable. We believe a weaker economy, progress on inflation, and market conditions will ultimately prompt the Fed to shift to a less restrictive stance by year end.

Outside of the U.S., warmer-than-normal weather has given Europe a much-needed break, as energy costs, particularly natural gas prices, have plummeted in recent weeks. However, the euro area and the United Kingdom are in the throes of economic downturns, with signs of more pain ahead as financial conditions continue to tighten. Central banks are aggressively hiking interest rates to drive back record inflation. We expect China's economy will get worse before it gets better. After almost three years, China has finally started to pivot away from its zero-Covid policy, causing some chaos. A steepening infection curve has overwhelmed the healthcare system, lowered mobility, and fueled employee absences. In addition, heavy cross-regional travel during this month's Lunar New Year holiday could lift infection rates and further disrupt the economy. However, reassuringly, the Central Economic Work Conference signaled policy would turn more pro-business and pro-growth in 2023. Therefore, while we do not expect substantial easing, fiscal and monetary policies should stay accommodative. Assuming the infection curve peaks in February or March, the economy should begin to recover in the second quarter. Services and consumption will be the major growth drivers, helped by pent-up demand and excess savings, while exports might be a modest drag.

**Equity Strategy** 

The sharp stock market correction in 2022 has reduced valuation multiples and largely discounts our base case of a mild recession this year. Even so, we expect the market to stay volatile in 2023, as investors shift their focus from inflation to corporate earnings, while economic weakness broadens and exerts substantial pressure on profitability. Accordingly, equity portfolios remain well-diversified, with a quality bias. Nonetheless, as was the case in 2022, we expect market dislocations will provide opportunities to "upgrade" holdings to improve the overall risk-reward profile of portfolios. In addition to traditional quality metrics (e.g., free cash flow generation, return on capital, balance sheets), our emphasis is on selecting stocks with attractive valuations and conservative/realistic earnings estimates. While portfolios continue to hold a combination of cyclical (technology, industrials, financials) and non-cyclical companies

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| | |
|:---|:---|
| **2** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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(consumer staples, health care, utilities), we plan to pivot to a pro-cyclical stance as the expected economic slowdown becomes fully embedded in valuations.

Despite a challenging 2022, our equity strategies maintain a significant weight in high-growth technology stocks. The substantial underperformance in the sector has drawn comparisons to 1999 to 2000, a period defined by rampant speculation, extreme valuations, and unsustainable business models. Although there are identifiable pockets of similar excesses in this cycle (e.g., crypto, "stay at home" pandemic stocks, EVs, and SPACs), the secular drivers of the technology sector are broad-based and durable. Importantly, our investments focus on secular growth subsegments, such as digital transformation, cybersecurity, automation, cloud/digital infrastructure, and electrification. Certainly, cyclical pressure in some end markets (e.g., PCs, e-commerce, digital advertising) and softer enterprise spending will take a toll on earnings. However, the need for productivity-enhancing technology investments will only intensify as economic growth slows, offsetting these pressures.

We believe the healthcare sector offers a good balance of defensive characteristics, driven by positive demographic drivers, and above-market earnings growth for 2023 and beyond. However, despite these positive fundamentals, the sector trades at a significant discount to the slower-growing, similarly-defensive consumer staples and utilities sectors. As we begin 2023, the factors that negatively impacted earnings growth, including supply chain issues, a high Covid-19 prevalence, and a strong U.S. dollar, have reversed. Moreover, industry sentiment has improved with the rollback of biopharmaceutical product pricing risk afforded by the passage of the Inflation Reduction Act, strong 2023 Medicare Advantage enrollment benefiting the managed care industry, and a robust pipeline of new product launches supporting the medical device industry.

We also continue to selectively add energy exposure, as structural supply-side constraints suggest an extended period of elevated, albeit volatile, energy prices. Years of underinvestment in fossil-based fuels, an accelerated build-out of sporadic renewable electricity sources, and a dependence on inconsistent resource providers have uncovered the shortcomings of current energy policies. So, a comprehensive approach appears most likely to meet the world's energy needs, given the renewed appreciation for the dependability of traditional fuels.

Dividend-paying stocks performed relatively well in 2022, as investors sought stability in a "risk-off " market. They allow investors to share in market gains during upturns but also provide downside protection if market conditions remain challenging. While the current yields of our dividend-based portfolios are already well

above benchmark yields, we anticipate solid dividend growth in 2023 for each of our dividend growth strategies. Within the dividend-paying universe, energy and defensive sectors, such as utilities, consumer staples, and P&C insurance, led the outperformance over the past year. However, we believe there are attractive long-term opportunities in areas overlooked by investors in the market turmoil, including health care, technology, industrials, and select financials.

As for international portfolios, we prefer investments in South Korea, Singapore, and India, as economic growth has been resilient and will further improve in 2023. Moreover, the expected rebound in China will have positive knock-on effects throughout Asia. Conversely, we are more cautious about Latin America, particularly Brazil, as tight monetary conditions will continue to impact economic growth negatively. We are constructive on Chinese stocks near-term, even after the recent rebound, considering reasonable valuations, still-skeptical investor sentiment, and the expected economic recovery. Nonetheless, concerns, such as high debt levels, adverse demographic trends, and geopolitical tensions with the U.S. could linger longer-term. Given the uncertainties around global economic growth, portfolios remain diversified across themes and industries. Overall, we believe emerging market stocks are attractively valued, with the MSCI Emerging Market Index<sup>®</sup> trading at the low end of its historical range relative to the MSCI USA Index<sup>®</sup>. Still, underlying fundamentals are highly variable, making country emphasis and stock selection critical in the year ahead.

![LOGO](g445807g00z02.jpg)

---

| |
|:---|
| Roger J. Sit |
| Chairman, President, CEO and Global CIO |

---

DECEMBER 31, 2022<sub>3</sub>

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&nbsp;&nbsp;&nbsp; **Sit Balanced Fund**<br>

**OBJECTIVE & STRATEGY** 

The dual objectives of the Sit Balanced Fund are to seek long-term growth of capital consistent with the preservation of principal and to provide regular income. It pursues its objectives by investing in a diversified portfolio of stocks and bonds. The Fund may emphasize either equity securities or fixed-income securities, or hold equal amounts of each, dependent upon the Adviser's analysis of market, financial and economic conditions.

The Fund's permissible investment allocation is: 35-65% in equity securities and 35-65% in fixed-income securities. At all times at least 25% of the fixed-income assets will be invested in fixed-income senior securities.

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**Fund Performance** 

The Sit Balanced Fund's return for the 6-month period ended December 31, 2022 was -0.55%. The S&P 500<sup>®</sup> Index return was +2.31% over the period, while the Bloomberg Aggregate Bond Index lost -2.97%.

**Factors that Influenced the Fund's Performance** 

Returns for the fixed income portion of the portfolio modestly un-derperformed the Bloomberg Aggregate Bond Index for the 6-month period ending 12/31/22, owing to its income advantage being more than offset by declining bond prices, as interest rates rose dramatically during the period in response to continued elevated levels of inflation. Therefore, to stem inflation, the Fed implemented contractionary monetary policy and has been aggressively raising the benchmark federal funds rate. Underperformance was particularly pronounced in holdings of U.S. Treasury bonds and taxable municipal securities, as these sectors had excess exposure to longer-maturity bonds that lagged. The Fund sold the last of its position in U.S. Treasury Inflation- Protected Securities (TIPS) during the period, due to expectations that inflation is likely to decline in 2023. The portfolio's allocation to corporate bonds outperformed, as the Fund reduced risk in this sector due to concerns of economic weakness. The underperformance in the equity portion of the Fund during the period was driven heavily by an overweight position in technology services and an underweight position in energy minerals. Stock selection also adversely affected technology services performance, as companies were hurt by rising interest rates that weighed on valuations and by concerns over slowing growth. Also, while the Fund's holdings in energy minerals were positive, being underweight the sector – which benefited from rising commodity prices – negatively impacted performance. Conversely, the Fund's underweight position in consumer durables, combined with an overweight and favorable stock selection in producer manufacturing, added to performance.

**Outlook and Positioning** 

We have repositioned the fixed income portion of the portfolio due to our expectation for interest rates to decline in 2023. We believe ongoing contractionary monetary policy by the Fed is likely to result in lower levels of inflation as 2023 progresses, and the aggressive pace and magnitude of the fed funds rate shift to date and prospectively over the course of the current rate cycle risks leading to a "hard landing" contraction of the economy. We expect investors to anticipate this hard landing and the resulting period of economic weakness, which will result in lower interest rates (particularly on the short end of the yield

**HYPOTHETICAL GROWTH OF $10,000** 

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![LOGO](g445807g00z03.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the S&P 500<sup>®</sup> Index and the Bloomberg Aggregate Bond Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> S&P 500<sup>®</sup> Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index. This is the primary index for the equity portion of the Fund.

<sup>2</sup> Bloomberg Aggregate Bond Index is an unmanaged market value weighted index which measures the performance of investment grade debt securities with maturities of at least one year. It is not possible to invest directly in an index. This is the primary index for the fixed income portion of the Fund.

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curve) despite the current actions of the Fed. In the equity portion of the Fund, we have maintained a large overweight position in technology companies that should benefit from secular trends, with a focus on companies with strong pricing power and wide moats around their businesses. Additionally, the Fund is overweight the health services sector, as companies here should benefit from strong pricing power and a reversal in Covid-19-related disruptions to their businesses.

As of December 31, 2022, the asset allocation of the Fund was 61.5% equity, 36.5% fixed income, and 2% cash and equivalents.

**Roger J. Sit** 

**Bryce A. Doty** 

**Ronald D. Sit** 

*Portfolio Managers* 

---

| | |
|:---|:---|
| **4** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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| | | | |
|:---|:---|:---|:---|
| **COMPARATIVE RATES OF RETURNS** | **COMPARATIVE RATES OF RETURNS** | **COMPARATIVE RATES OF RETURNS** | **COMPARATIVE RATES OF RETURNS** |
| <br> as of December 31, 2022 | <br> as of December 31, 2022 | <br> as of December 31, 2022 | <br> as of December 31, 2022 |
|  | **Sit Balanced Fund** | **S&P 500<sup>®</sup>**<br> **Index<sup>1</sup>**  | **Bloomberg**<br> **Aggregate**<br> **Bond Index<sup>2</sup>** |
|  Six Month | -0.55% | 2.31% | -2.97% |
|  One Year | -20.84 | -18.11 | -13.01 |
|  Five Year | 5.62 | 9.43 | 0.02 |
|  Ten Year | 7.90 | 12.56 | 1.06 |
| Since Inception (12/31/93) | 6.88 | 9.62 | 4.37 |

---

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Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> S&P 500<sup>®</sup> Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.

<sup>2</sup> Bloomberg Aggregate Bond Index is an unmanaged market value weighted index which measures the performance of investment grade debt securities with maturities of at least one year.

---

| | |
|:---|:---|
| **PORTFOLIO SUMMARY** | |
|  Net Asset Value 12/31/22: | $25.51 Per Share |
|  Net Asset Value 6/30/22: | $26.86 Per Share |
|  Net Assets: | $43.9 Million |

---

**TOP HOLDINGS**

Top Equity Holdings:

&nbsp;&nbsp;&nbsp;&nbsp;1. Apple, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;2. Microsoft Corp.

&nbsp;&nbsp;&nbsp;&nbsp;3. Alphabet, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;4. UnitedHealth Group, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;5. Broadcom, Inc.

Top Fixed Income Holdings:

&nbsp;&nbsp;&nbsp;&nbsp;1. U.S. Treasury Notes, 1.88%, 2/28/27

&nbsp;&nbsp;&nbsp;&nbsp;2. U.S. Treasury Notes, 2.75%, 7/31/27

&nbsp;&nbsp;&nbsp;&nbsp;3. U.S. Treasury Bonds, 4.00%, 11/15/52

&nbsp;&nbsp;&nbsp;&nbsp;4. Federal National Mortgage Association, 4.50%, 9/1/52

&nbsp;&nbsp;&nbsp;&nbsp;5. Federal National Mortgage Association, 4.50%, 7/1/52

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Based on net assets as of December 31, 2022.

**FUND DIVERSIFICATION** 

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![LOGO](g445807g00z04.jpg)

Based on net assets as of December 31, 2022.

DECEMBER 31, 2022<sub>5</sub>

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**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Balanced Fund** 

Investments are grouped by economic sectors.

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| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 61.5%** |  |  |
|  **Communications - 0.7%** |  |  |
|  American Tower Corp. | 1475 | 312493 |
|  **Consumer Durables - 0.5%** |  |  |
|  YETI Holdings, Inc. <sup>\*</sup>  | 5500 | 227205 |
|  **Consumer Non-Durables - 3.2%** |  |  |
|  Constellation Brands, Inc. | 2025 | 469294 |
|  Estee Lauder Cos., Inc. - Class A | 1635 | 405660 |
|  Mondelez International, Inc. | 3400 | 226610 |
|  PepsiCo, Inc. | 1825 | 329704 |
|  |  | 1431268 |
|  **Consumer Services - 2.4%** |  |  |
|  McDonald's Corp. | 1450 | 382118 |
|  Visa, Inc. | 3100 | 644056 |
|  |  | 1026174 |
|  **Electronic Technology - 8.8%** |  |  |
|  Apple, Inc. | 14600 | 1896978 |
|  Applied Materials, Inc. | 2600 | 253188 |
|  Broadcom, Inc. | 1485 | 830308 |
|  NVIDIA Corp. | 4200 | 613788 |
|  Palo Alto Networks, Inc. <sup>\*</sup>  | 500 | 69770 |
|  Qualcomm, Inc. | 1625 | 178653 |
|  |  | 3842685 |
|  **Energy Minerals - 1.5%** |  |  |
|  ConocoPhillips | 5775 | 681450 |
|  **Finance - 4.1%** |  |  |
|  Ameriprise Financial, Inc. | 1150 | 358076 |
|  Chubb, Ltd. | 1400 | 308840 |
|  First Republic Bank | 1750 | 213307 |
|  Goldman Sachs Group, Inc. | 1600 | 549408 |
|  JPMorgan Chase & Co. | 2925 | 392242 |
|  |  | 1821873 |
|  **Health Services - 4.2%** |  |  |
|  Centene Corp. <sup>\*</sup>  | 3500 | 287035 |
|  HCA Healthcare, Inc. | 1600 | 383936 |
|  UnitedHealth Group, Inc. | 2150 | 1139887 |
|  |  | 1810858 |
|  **Health Technology - 5.6%** |  |  |
|  Abbott Laboratories | 3550 | 389755 |
|  Dexcom, Inc. <sup>\*</sup>  | 5260 | 595642 |
|  Johnson & Johnson | 3000 | 529950 |
|  Medtronic, PLC | 3425 | 266191 |
|  Thermo Fisher Scientific, Inc. | 1200 | 660828 |
|  |  | 2442366 |
|  **Industrial Services - 1.0%** |  |  |
|  Cheniere Energy, Inc. | 2900 | 434884 |
|  **Process Industries - 1.9%** |  |  |
|  Darling Ingredients, Inc. <sup>\*</sup>  | 3525 | 220630 |
|  Linde, PLC | 1225 | 399571 |
|  Sherwin-Williams Co. | 1000 | 237330 |
|  |  | 857531 |
|  **Producer Manufacturing - 4.8%** |  |  |
|  Honeywell International, Inc. | 1450 | 310735 |

---

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| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Motorola Solutions, Inc. | 1400 | 360794 |
|  Northrop Grumman Corp. | 675 | 368287 |
|  Parker-Hannifin Corp. | 1350 | 392850 |
|  Safran SA, ADR | 11550 | 360822 |
|  Siemens AG, ADR | 5175 | 355988 |
|  |  | 2149476 |
|  **Retail Trade - 7.0%** |  |  |
|  Amazon.com, Inc. <sup>\*</sup>  | 9700 | 814800 |
|  CVS Health Corp. | 5800 | 540502 |
|  Home Depot, Inc. | 2050 | 647513 |
|  Lululemon Athletica, Inc. <sup>\*</sup>  | 925 | 296351 |
|  TJX Cos., Inc. | 5100 | 405960 |
|  Ulta Beauty, Inc. <sup>\*</sup>  | 795 | 372911 |
|  |  | 3078037 |
|  **Technology Services - 13.6%** |  |  |
|  Accenture, PLC | 2025 | 540351 |
|  Adobe, Inc. <sup>\*</sup>  | 475 | 159852 |
|  Alphabet, Inc. - Class A <sup>\*</sup>  | 12400 | 1094052 |
|  Alphabet, Inc. - Class C <sup>\*</sup>  | 4100 | 363793 |
|  Atlassian Corp. <sup>\*</sup>  | 1050 | 135114 |
|  Autodesk, Inc. <sup>\*</sup>  | 1450 | 270962 |
|  Dynatrace, Inc. <sup>\*</sup>  | 4250 | 162775 |
|  Intuit, Inc. | 1200 | 467064 |
|  Microsoft Corp. | 7800 | 1870596 |
|  Paycom Software, Inc. <sup>\*</sup>  | 600 | 186186 |
|  Salesforce, Inc. <sup>\*</sup>  | 3650 | 483954 |
|  ServiceNow, Inc. <sup>\*</sup>  | 560 | 217431 |
|  |  | 5952130 |
|  **Transportation - 1.4%** |  |  |
|  FedEx Corp. | 975 | 168870 |
|  Union Pacific Corp. | 2050 | 424493 |
|  |  | 593363 |
|  **Utilities - 0.8%** |  |  |
|  NextEra Energy, Inc. | 4140 | 346104 |
|  **Total Common Stocks<br>(cost: $17,323,527)** |  | 27007897 |
| **Name of Issuer** | **Principal<br>Amount ($)** | **Fair Value ($)** |
|  **Bonds – 34.1%**  |  |  |
|  **Asset-Backed Securities - 0.5%** |  |  |
|  Small Business Administration: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2008-20A 1, 5.17%, 1/1/28 | 14243 | 14034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2007-20H 1, 5.78%, 8/1/27 | 12118 | 12029 |
|  Towd Point Mortgage Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-MH1 A1A, 2.18%, 2/25/60 <sup>1,</sup> <sup>4</sup> | 91909 | 85458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019-MH1 A2, 3.00%, 11/25/58 <sup>1,</sup> <sup>4</sup> | 100000 | 94797 |
|  |  | 206318 |
|  **Collateralized Mortgage Obligations - 6.9%** | **Collateralized Mortgage Obligations - 6.9%** |  |
|  Fannie Mae: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2017-84 JP, 2.75%, 10/25/47 | 18338 | 16319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2003-34 A1, 6.00%, 4/25/43 | 25246 | 25619 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **6** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Principal<br>Amount ($)** | **Fair Value ($)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-T1 1A1, 6.00%, 1/25/44 | 15553 | 15723 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1999-17 C, 6.35%, 4/25/29 | 5217 | 5292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2001-82 ZA, 6.50%, 1/25/32 | 8733 | 8926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2009-30 AG, 6.50%, 5/25/39 | 27436 | 28243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2013-28 WD, 6.50%, 5/25/42 | 25907 | 26968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-T1 1A2, 6.50%, 1/25/44 | 44003 | 45250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-W9 2A1, 6.50%, 2/25/44 | 26828 | 27480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010-108 AP, 7.00%, 9/25/40 | 486 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2004-T3 1A3, 7.00%, 2/25/44 | 5129 | 5368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1993-21 KA, 7.70%, 3/25/23 | 152 | 152 |
|  Freddie Mac: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4293 BA, 5.29%, 10/15/47 <sup>1</sup>  | 7842 | 7815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2122 ZE, 6.00%, 2/15/29 | 30286 | 30940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2126 C, 6.00%, 2/15/29 | 19276 | 19593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2480 Z, 6.00%, 8/15/32 | 22148 | 22550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2485 WG, 6.00%, 8/15/32 | 22019 | 22507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2575 QE, 6.00%, 2/15/33 | 9940 | 10103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2980 QA, 6.00%, 5/15/35 | 11221 | 11462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2283 K, 6.50%, 12/15/23 | 648 | 649 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2357 ZJ, 6.50%, 9/15/31 | 15944 | 16145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4520 HM, 6.50%, 8/15/45 | 13205 | 14162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3704 CT, 7.00%, 12/15/36 | 9212 | 9811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2238 PZ, 7.50%, 6/15/30 | 8262 | 8732 |
|  Government National Mortgage Association: | Government National Mortgage Association: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-86 WB, 4.73%, 5/20/51 <sup>1</sup>  | 145333 | 144740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-104 HT, 5.50%, 6/20/51 | 180579 | 184819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-27 AW, 5.85%, 2/20/51 <sup>1</sup>  | 196871 | 208827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2015-80 BA, 7.00%, 6/20/45 <sup>1</sup>  | 9967 | 10410 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2018-147 AM, 7.00%, 10/20/48 | 27957 | 29423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2018-160 DA, 7.00%, 11/20/48 | 25839 | 27141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2014-69 W, 7.21%, 11/20/34 <sup>1</sup>  | 13725 | 14416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2013-133 KQ, 7.32%, 8/20/38 <sup>1</sup>  | 15764 | 16722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2005-74 HA, 7.50%, 9/16/35 | 1077 | 1091 |
|  JP Morgan Mortgage Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-3 A4, 2.50%, 7/25/51 <sup>1,</sup> <sup>4</sup> | 133333 | 117755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-6 A4, 2.50%, 10/25/51 <sup>1,</sup> <sup>4</sup> | 307877 | 264305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-13 A4, 2.50%, 4/25/52 <sup>1,</sup> <sup>4</sup> | 284434 | 244521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019-HYB1 A5A, 3.00%, 10/25/49 <sup>1,</sup> <sup>4</sup> | 32116 | 29137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-8 A3, 3.00%, 3/25/51 <sup>1,</sup> <sup>4</sup> | 18890 | 15843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-13 A11, 4.37%, 4/25/52 <sup>1,</sup> <sup>4</sup> | 300825 | 273596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2022-1 A11, 4.37%, 7/25/52 <sup>1,</sup> <sup>4</sup> | 349450 | 319160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2022-2 A11, 4.57%, 8/25/52 <sup>1,</sup> <sup>4</sup> | 329708 | 304042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2021-6 A12, 5.00%, 10/25/51 <sup>1,</sup> <sup>4</sup> | 289544 | 273865 |
|  New Residential Mortgage Loan Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2018-3A A1, 4.50%, 5/25/58 <sup>1,</sup> <sup>4</sup> | 39011 | 36655 |
|  PMT Loan Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2013-J1 A11, 3.50%, 9/25/43 <sup>1,</sup> <sup>4</sup> | 28981 | 25725 |
|  Sequoia Mortgage Trust:<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-4 A5, 2.50%, 11/25/50 <sup>1,</sup> <sup>4</sup> | 44836 | 40189 |
|  Vendee Mortgage Trust:<br>|  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2008-1 B, 5.98%, 3/15/25 <sup>1</sup>  | 7306 | 7436 |
|  Wells Fargo Mortgaged Backed Securities Trust: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-5 A3, 2.50%, 9/25/50 <sup>1,</sup> <sup>4</sup> | 36272 | 31841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-2 A17, 3.00%, 12/25/49 <sup>1,</sup> <sup>4</sup> | 28629 | 23463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2020-2 A3, 3.00%, 12/25/49 <sup>1,</sup> <sup>4</sup> | 4838 | 4718 |
|  |  | 3030155 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Principal<br>Amount ($)** | **Fair Value ($)** |
|  **Corporate Bonds - 7.9%** |  |  |
|  Becton Dickinson & Co., 4.30%, 8/22/32 | 50000 | 47007 |
|  British Airways 2020-1 Class B Pass Through Trust, 8.38%, 11/15/28 4 | 46844 | 46004 |
|  Charles Stark Draper Lab., Inc., 4.39%, 9/1/48 | 100000 | 89245 |
|  ConocoPhillips Co., 6.95%, 4/15/29 | 125000 | 138578 |
|  Consumers Energy Co., 4.35%, 8/31/64 | 50000 | 40942 |
|  CVS Pass-Through Trust, 7.51%, 1/10/32 <sup>4</sup>  | 118879 | 123910 |
|  Delta Air Lines 2015-1 Class AA Pass Through Trust, 3.63%, 7/30/27 | 121676 | 111218 |
|  Duke Energy Florida, LLC: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.54%, 9/1/29 | 49482 | 44915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.86%, 3/1/33 | 120000 | 101107 |
|  Entergy Louisiana, LLC, 4.95%, 1/15/45 | 150000 | 133802 |
|  Equifax, Inc., 3.10%, 5/15/30 | 100000 | 84379 |
|  Equinor ASA, 7.15%, 11/15/25 | 150000 | 157940 |
|  Fairfax Financial Holdings, 7.75%, 7/15/37 | 150000 | 154250 |
|  ITT, LLC, 7.40%, 11/15/25 | 25000 | 25577 |
|  Johnson & Johnson, 3.55%, 3/1/36 | 150000 | 133528 |
|  JPMorgan Chase & Co., 3 Mo. Libor + 1.16%, 3.22%, 3/1/25 <sup>1</sup>  | 50000 | 48592 |
|  Moody's Corp., 4.25%, 8/8/32 | 50000 | 46876 |
|  Morgan Stanley, 4.68%, 7/17/26 <sup>1</sup>  | 100000 | 98365 |
|  Nationwide Mutual Insurance Co. (Subordinated), 3 Mo. Libor + 2.29, 7.06%, 12/15/24 <sup>1,</sup> 4 | 195000 | 194487 |
|  Northern Trust Corp. (Subordinated), 3 Mo. Libor + 1.13, 3.38%, 5/8/32 <sup>1</sup>  | 250000 | 227401 |
|  PacifiCorp, 2.70%, 9/15/30 | 200000 | 172461 |
|  Polar Tankers, Inc., 5.95%, 5/10/37 <sup>4</sup>  | 97890 | 99364 |
|  Principal Financial Group, Inc., 3 Mo. Libor + 3.04%, 7.65%, 5/15/55 <sup>1</sup>  | 100000 | 96750 |
|  Prudential Financial, Inc. (Subordinated), 3 Mo. Libor + 3.92%, 5.63%, 6/15/43 <sup>1</sup>  | 200000 | 196500 |
|  Security Benefit Life Insurance Co. (Subordinated), 7.45%, 10/1/33 <sup>4</sup>  | 100000 | 96738 |
|  Spirit Airlines, 4.10%, 4/1/28 | 107016 | 95374 |
|  Tennessee Gas Pipeline, LLC, 7.00%, 10/15/28 | 213000 | 227916 |
|  United Airlines 2019-2 Class AA Pass Through Trust, 2.70%, 5/1/32 | 132679 | 107291 |
|  Unum Group, 7.25%, 3/15/28 | 25000 | 26307 |
|  Waste Connections, Inc., 4.20%, 1/15/33 | 100000 | 93036 |
|  West Loop BC (Subordinated), 3 Mo. Libor + 1.87, 6.63%, 12/1/27 <sup>1</sup>  | 225000 | 224704 |
|  |  | 3484564 |
|  **Federal Home Loan Mortgage Corporation - 0.3%** | **Federal Home Loan Mortgage Corporation - 0.3%** |  |
|  7.50%, 7/1/29 | 58756 | 60908 |
|  8.00%, 2/1/34 | 5893 | 6094 |
|  8.50%, 5/1/31 | 68461 | 71696 |
|  |  | 138698 |
|  **Federal National Mortgage Association - 2.4%** | **Federal National Mortgage Association - 2.4%** | **Federal National Mortgage Association - 2.4%** |
|  4.50%, 7/1/52 | 339098 | 326751 |
|  4.50%, 9/1/52 | 341658 | 329221 |
|  5.50%, 8/1/56 | 168385 | 173925 |
|  6.00%, 7/1/41 | 154887 | 161258 |
|  6.50%, 2/1/24 | 1416 | 1410 |
|  6.50%, 9/1/27 | 19828 | 20326 |
|  7.00%, 1/1/32 | 4634 | 4637 |

---

*See accompanying notes to financial statements.* 

DECEMBER 31, 2022<sub>7</sub>

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

DECEMBER 31, 2022

**Sit Balanced Fund (Continued)** 

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Principal<br>Amount ($)** | **Fair Value ($)** |
|  7.00%, 3/1/33 | 13155 | 13420 |
|  7.00%, 12/1/38 | 12875 | 13146 |
|  8.00%, 1/1/31 | 3152 | 3149 |
|  8.42%, 7/15/26 | 1225 | 1224 |
|  |  | 1048467 |
|  **Government National Mortgage Association - 0.6%** | **Government National Mortgage Association - 0.6%** |  |
|  5.00%, 5/20/48 | 27971 | 28245 |
|  5.50%, 8/20/62 | 198683 | 200044 |
|  6.50%, 11/20/38 | 9250 | 9424 |
|  7.00%, 12/15/24 | 2831 | 2835 |
|  7.00%, 11/20/27 | 5798 | 5889 |
|  7.00%, 9/20/29 | 15673 | 16197 |
|  7.00%, 9/20/38 | 6547 | 6864 |
|  7.50%, 4/20/32 | 9757 | 9961 |
|  8.00%, 7/15/24 | 143 | 143 |
|  |  | 279602 |
|  **Taxable Municipal Securities - 9.7%** |  |  |
|  Benton & Polk Sch. Dist. No. 17J G.O., 5.47%, 6/15/27 | 150000 | 154493 |
|  Chicago Park Dist., 2.53%, 1/1/34 | 235000 | 176057 |
|  CO Health Facs. Auth., 3.13%, 5/15/27 | 250000 | 221778 |
|  Colliers Hill Metropolitan Dist. No. 2 G.O., 3.99%, 12/1/47 | 250000 | 192163 |
|  Colorado Edu. & Cultural Fac. Auth.,<br>3.97%, 3/1/56 | 205000 | 152612 |
|  Coventry Local Sch. Dist., 2.20%, 11/1/29 | 200000 | 166646 |
|  Kentucky Higher Edu. Student Loan Corp. (Subordinated), 5.27%, 6/1/36 | 100000 | 87922 |
|  LaGrange Co. Regional Utility Dist.,<br>2.98%, 1/1/40 | 230000 | 176861 |
|  Louisiana State Trans. Auth.,<br>1.45%, 2/15/27 | 300000 | 261195 |
|  Madison Co. Comm. Sch. Dist. No. 7, 1.90%, 12/1/30 | 150000 | 118288 |
|  Maricopa Co. Industrial Dev. Auth.,<br>5.00%, 7/1/44 <sup>4</sup>  | 100000 | 99456 |
|  Massachusetts Edu. Auth.: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 1/1/32 | 25000 | 24157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.41%, 7/1/34 | 15000 | 14742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.95%, 7/1/38 | 200000 | 192528 |
|  MD Comm. Dev. Admin., 4.03%, 9/1/27 | 200000 | 191056 |
|  MN Hsg. Fin. Agy., 2.31%, 1/1/27 | 135000 | 125709 |
|  NJ Higher Edu. Student Assit. Auth., 3.50%, 12/1/39 <sup>8</sup>  | 85000 | 81830 |
|  No. Dakota Hsg. Fin. Auth., 3.70%, 7/1/33 | 100000 | 89592 |
|  NY Mortgage Agency, 2.98%, 10/1/40 | 150000 | 112995 |
|  NY State Dormitory Auth., 2.69%, 7/1/35 | 200000 | 145696 |
|  Oregon State Fac. Auth., 2.68%, 7/1/31 | 350000 | 284368 |
|  Public Fin. Auth., 4.23%, 7/1/32 | 105000 | 95968 |
|  RI Student Loan Auth., 4.13%, 12/1/27 | 200000 | 189374 |
|  Texas Children's Hospital,<br>3.37%, 10/1/29 <sup>17</sup>  | 115000 | 106476 |
|  Texas Trans. Comm. State Highway,<br>5.18%, 4/1/30 | 150000 | 152844 |
|  Utah Charter Sch. Fin. Auth., 2.40%, 10/15/27 | 205000 | 183422 |
|  VA Hsg. Dev. Auth., 2.13%, 7/25/51 | 230522 | 191504 |
|  WA State Hsg. Fin. Comm., 3.50%, 7/1/24 <sup>4</sup>  | 155000 | 149460 |
|  Wichita Falls, 1.65%, 9/1/28 | 145000 | 122260 |
|  |  | 4261452 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Principal<br>Amount ($)** | **Fair Value ($)** |
|  **U.S. Treasury / Federal Agency Securities - 5.8%** | **U.S. Treasury / Federal Agency Securities - 5.8%** |  |
|  **U.S. Treasury - 5.8%** | **U.S. Treasury - 5.8%** |  |
|  U.S. Treasury Bonds: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.00%, 8/15/52 | 100000 | 83156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 11/15/52 | 675000 | 681961 |
|  U.S. Treasury Notes: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.88%, 2/28/27 | 850000 | 779643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.75%, 7/31/27 | 725000 | 687022 |
|  U.S. Treasury Strip: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.97%, 11/15/50 <sup>6</sup>  | 175000 | 58476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.18%, 8/15/47 <sup>6</sup>  | 650000 | 238286 |
|  |  | 2528544 |
|  **Total Bonds<br>(cost $16,845,055)** |  | 14977800 |
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Investment Companies 2.4%** |  |  |
|  BlackRock Enhanced Government Fund | 4536 | 43908 |
|  BlackRock Income Trust, Inc. | 1400 | 17276 |
|  DWS Municipal Income Trust | 9800 | 84378 |
|  MFS Intermediate Income Trust | 63700 | 175812 |
|  Nuveen AMT-Free Quality Muni Income Fund | 15100 | 171687 |
|  Nuveen Multi-Market Income Fund | 3953 | 23204 |
|  Putnam Master Intermediate Income Trust | 61000 | 195200 |
|  Putnam Premier Income Trust | 58975 | 214079 |
|  TCW Strategic Income Fund, Inc. | 18000 | 83160 |
|  **Total Investment Companies<br>(cost: $1,171,579)** |  | 1008704 |
|  **Short-Term Securities - 1.0%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $457,476)** | 457476 | 457476 |
|  **Total Investments in Securities - 99.0%<br>(cost $35,797,637)** | **Total Investments in Securities - 99.0%<br>(cost $35,797,637)** | 43451877 |
|  **Other Assets and Liabilities, net - 1.0%** | **Other Assets and Liabilities, net - 1.0%** | 457212 |
|  **Net Assets - 100.0%** |  | $43909089 |

---

------

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **8** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

\* Non-income producing security.

<sup>1</sup> Variable rate security. Rate disclosed is as of December 31, 2022. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions. 

<sup>4</sup> 144A Restricted Security. The total value of such securities as of December 31, 2022 was $2,994,490 and represented 6.8% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors. 

<sup>6</sup> Zero coupon or convertible capital appreciation bond, for which the rate disclosed is either the effective yield on purchase date or the coupon rate to be paid upon conversion to coupon paying.

<sup>8</sup> Securities the income from which is treated as a tax preference that is included in alternative minimum taxable income for purposes of computing federal alternative minimum tax (AMT). At December 31, 2022, 0.2% of net assets in the Fund was invested in such securities. 

<sup>17</sup> Security that is either an absolute and unconditional obligation of the United States Government or is collateralized by securities, loans, or leases guaranteed by the U.S. Government or its agencies or instrumentalities.

ADR — American Depositary Receipt

LLC — Limited Liability Company

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks<sup>\*\*</sup>  | 27007897 |  |  | 27007897 |
|  Asset-Backed Securities |  | 206318 |  | 206318 |
|  Collateralized Mortgage Obligations |  | 3030155 |  | 3030155 |
|  Corporate Bonds |  | 3484564 |  | 3484564 |
|  Federal Home Loan Mortgage Corporation |  | 138698 |  | 138698 |
|  Federal National Mortgage Association |  | 1048467 |  | 1048467 |
|  Government National Mortgage Association |  | 279602 |  | 279602 |
|  Taxable Municipal Securities |  | 4261452 |  | 4261452 |
|  U.S. Treasury / Federal Agency Securities |  | 2528544 |  | 2528544 |
|  Investment Companies | 1008704 |  |  | 1008704 |
|  Short-Term Securities | 457476 |  |  | 457476 |
|  Total: | 28474077 | 14977800 |  | 43451877 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

**DECEMBER 31, 2022**<sub>9</sub>

------

&nbsp;&nbsp;&nbsp; **Sit Dividend Growth Fund - Class I and Class S**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Dividend Growth Fund is to provide current income that exceeds the dividend yield of the S&P 500<sup>®</sup> Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.

The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.

------

**Fund Performance** 

The Sit Dividend Growth Fund Class I posted a +6.15% return during the 6-month period ended December 31, 2022, compared to the +2.31% return for the S&P 500<sup>®</sup> Index. The Fund's gross dividend yield (before deducting Fund expenses) was 2.14% as of 12/31/22, compared to +1.76% for the S&P 500<sup>®</sup> Index.

**Factors that Influenced the Fund's Performance** 

The Fund posted strong absolute and relative returns over the 6-month period, outperforming the S&P500<sup>®</sup> Index by nearly +4%. The main reason for the outperformance was the Fund's focus on investing in stable, cash flow generative companies that outperformed, especially in the volatile market environment in the second half of 2022. The five key sectors that led to outperformance over the period were technology services, consumer durables, retail trade, finance, and electronic technology. In technology services, the Fund benefitted from the strong relative returns of Oracle and Genpact Ltd., while being underweight higher valuation companies that were negatively affected by rising interest rates and concerns over slowing growth rates. The Fund's large underweight position in consumer durables positively impacted performance, as equities in this sector underperformed the market due to concerns over declining consumer sentiment and higher interest rates. The other three highlighted sectors were helped by stock selection. In the retail trade space, the Fund benefitted from holdings, such as TJX Cos. and Target, and not owning non-dividend-payers Amazon.com and Costco. Within the finance sector, the Fund owned property and causality insurance companies, in addition to life insurers that benefitted from rising interest rates. Underweighting banks also boosted relative returns. Relative performance was adversely affected by the Fund's stock selection within health technology, where the Fund's holdings in more stable names underperformed higher growth companies within the benchmark. Holdings within the Fund's transportation sector also lagged over the period.

**Outlook and Positioning** 

We have consistently communicated a strong preference for "quality" throughout 2022, as market volatility increased and downside tail risks to the global economy grew. In general, quality-oriented factors (e.g., return on equity, balance sheets, cash flow) have performed relatively well this year, which is a trend we expect to continue. In this regard, we

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z05.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the S&P 500<sup>®</sup> Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> S&P 500<sup>®</sup> Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index. This is the Fund's primary index.

------

favor dividend-paying growth stocks, which allow investors to participate in a market rebound, with somewhat less volatility. In addition, companies that can grow cash flows and increase dividends will provide some inflation protection over time. We continue to add to energy opportunistically. The sector offers a combination of improving fundamentals, buoyed by durable supply-side constraints and a hedge against ongoing elevated geopolitical risk. Also, multiple years of industry un-derinvestment, waning spare capacity, and a wholesale reshuffling of global energy flows amid the Russia-Ukraine conflict point to enduring challenges in sourcing new energy supplies. With no quick fixes, energy prices should remain elevated. Within energy, we favor companies with high-quality/differentiated assets, talented management teams, and the ability to grow shareholder returns durably.

**Roger J. Sit** 

**Kent L. Johnson** 

*Portfolio Managers* 

---

| | |
|:---|:---|
| **10** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit Dividend<br>Growth Fund** | **Sit Dividend<br>Growth Fund** | |
| | **Class I** | **Class S** |<br>**S&P 500<sup>®</sup><br>Index<sup>1</sup>** |
|  Six Month | 6.15% | 5.98% | 2.31% |
|  One Year | -11.95 | -12.20 | -18.11 |
|  Five Year | 9.15 | 8.88 | 9.43 |
|  Ten Year | 11.53 | 11.26 | 12.56 |
|  Since Inception-Class I | 9.71 | n/a | 8.88 |
|  (12/31/03) |  |  |  |
|  Since Inception-Class S | n/a | 9.15 | 8.87 |
|  (3/31/06) |  |  |  |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> S&P 500<sup>®</sup> Index is an unmanaged capitalization-weighted index that measures the performance of 500 widely held common stocks of large-cap companies. It is not possible to invest directly in an index.

**PORTFOLIO SUMMARY** 

---

| | | |
|:---|:---|:---|
|  **Class I:** |  |  |
|  Net Asset Value 12/31/22: | $13.59 | Per Share |
|  Net Asset Value 6/30/22: | $14.29 | Per Share |
|  Net Assets: | $196.3 | Million |
|  **Class S:** |  |  |
|  Net Asset Value 12/31/22: | $13.50 | Per Share |
|  Net Asset Value 6/30/22: | $14.20 | Per Share |
|  Net Assets: | $22.0 | Million |
|  Weighted Average Market Cap: | $321.1 | Billion |

---

**TOP 10 HOLDINGS** 

1. Microsoft Corp. 2. Apple, Inc. 3. Johnson & Johnson 4. Broadcom, Inc. 5. ConocoPhillips 6. Exxon Mobil Corp. 7. UnitedHealth Group, Inc. 8. Analog Devices, Inc. 9. PepsiCo, Inc. 10. Oracle Corp. Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z06.jpg) <br>

Based on net assets as of December 31, 2022.

DECEMBER 31, 2022<sub>11</sub>

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Dividend Growth Fund** 

Investments are grouped by economic sectors.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 100.2%** |  |  |
|  **Commercial Services - 2.3%** |  |  |
|  Booz Allen Hamilton Holding Corp. | 21225 | 2218437 |
|  Sysco Corp. | 35825 | 2738821 |
|  |  | 4957258 |
|  **Communications - 0.9%** |  |  |
|  American Tower Corp. | 9550 | 2023263 |
|  **Consumer Durables - 0.7%** |  |  |
|  Activision Blizzard, Inc. | 18475 | 1414261 |
|  **Consumer Non-Durables - 5.9%** |  |  |
|  Constellation Brands, Inc. | 9250 | 2143688 |
|  Mondelez International, Inc. | 49800 | 3319170 |
|  PepsiCo, Inc. | 21175 | 3825475 |
|  Procter & Gamble Co. | 23950 | 3629862 |
|  |  | 12918195 |
|  **Consumer Services - 3.3%** |  |  |
|  McDonald's Corp. | 9025 | 2378358 |
|  Starbucks Corp. | 19200 | 1904640 |
|  Visa, Inc. | 14555 | 3023947 |
|  |  | 7306945 |
|  **Electronic Technology - 14.0%** |  |  |
|  Analog Devices, Inc. | 23425 | 3842403 |
|  Apple, Inc. | 79025 | 10267718 |
|  Applied Materials, Inc. | 23800 | 2317644 |
|  Broadcom, Inc. | 11550 | 6457951 |
|  Garmin, Ltd. | 13100 | 1208999 |
|  Qualcomm, Inc. | 9475 | 1041682 |
|  Skyworks Solutions, Inc. | 22600 | 2059538 |
|  TE Connectivity, Ltd. | 29050 | 3334940 |
|  |  | 30530875 |
|  **Energy Minerals - 4.5%** |  |  |
|  ConocoPhillips | 44200 | 5215600 |
|  Exxon Mobil Corp. | 40850 | 4505755 |
|  |  | 9721355 |
|  **Finance - 16.0%** |  |  |
|  Alexandria Real Estate Equities, Inc. | 19650 | 2862415 |
|  American International Group, Inc. | 43600 | 2757264 |
|  Ameriprise Financial, Inc. | 8575 | 2669998 |
|  Carlyle Group, Inc. | 49600 | 1480064 |
|  Chubb, Ltd. | 9100 | 2007460 |
|  East West Bancorp, Inc. | 26925 | 1774358 |
|  Everest Re Group, Ltd. | 7325 | 2426553 |
|  Goldman Sachs Group, Inc. | 3950 | 1356351 |
|  MetLife, Inc. | 25975 | 1879811 |
|  Morgan Stanley | 37375 | 3177622 |
|  PNC Financial Services Group, Inc. | 12400 | 1958456 |
|  Realty Income Corp. | 50350 | 3193700 |
|  Reinsurance Group of America, Inc. | 20575 | 2923502 |
|  Wells Fargo & Co. | 54450 | 2248240 |
|  Willis Towers Watson, PLC | 8803 | 2153038 |
|  |  | 34868832 |
|  **Health Services - 3.8%** |  |  |
|  HCA Healthcare, Inc. | 7850 | 1883686 |
|  Quest Diagnostics, Inc. | 14925 | 2334867 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  UnitedHealth Group, Inc. | 7725 | 4095640 |
|  |  | 8314193 |
|  **Health Technology - 13.2%** |  |  |
|  Abbott Laboratories | 27000 | 2964330 |
|  Agilent Technologies, Inc. | 14875 | 2226044 |
|  AstraZeneca, PLC, ADR | 53675 | 3639165 |
|  Bristol-Myers Squibb Co. | 45475 | 3271926 |
|  Gilead Sciences, Inc. | 24475 | 2101178 |
|  Johnson & Johnson | 36675 | 6478639 |
|  Medtronic, PLC | 46050 | 3579006 |
|  Pfizer, Inc. | 47425 | 2430057 |
|  Thermo Fisher Scientific, Inc. | 3900 | 2147691 |
|  |  | 28838036 |
|  **Industrial Services - 3.2%** |  |  |
|  Jacobs Solutions, Inc. | 14850 | 1783040 |
|  Waste Management, Inc. | 13750 | 2157100 |
|  Williams Cos., Inc. | 93250 | 3067925 |
|  |  | 7008065 |
|  **Process Industries - 2.5%** |  |  |
|  Air Products & Chemicals, Inc. | 12100 | 3729946 |
|  Nutrien, Ltd. | 23050 | 1683342 |
|  |  | 5413288 |
|  **Producer Manufacturing - 6.2%** |  |  |
|  Carlisle Cos, Inc. | 9300 | 2191545 |
|  Eaton Corp., PLC | 17425 | 2734854 |
|  General Dynamics Corp. | 12200 | 3026942 |
|  Northrop Grumman Corp. | 3790 | 2067862 |
|  Parker-Hannifin Corp. | 5850 | 1702350 |
|  Siemens AG, ADR | 27800 | 1912362 |
|  |  | 13635915 |
|  **Retail Trade - 4.1%** |  |  |
|  CVS Health Corp. | 26525 | 2471865 |
|  Home Depot, Inc. | 7035 | 2222075 |
|  Target Corp. | 8775 | 1307826 |
|  TJX Cos., Inc. | 38050 | 3028780 |
|  |  | 9030546 |
|  **Technology Services - 12.2%** |  |  |
|  Accenture, PLC | 11700 | 3122028 |
|  Alphabet, Inc. - Class A <sup>\*</sup>  | 37400 | 3299802 |
|  Genpact, Ltd. | 54175 | 2509386 |
|  Intuit, Inc. | 5725 | 2228284 |
|  Microsoft Corp. | 48400 | 11607288 |
|  Oracle Corp. | 46200 | 3776388 |
|  |  | 26543176 |
|  **Transportation - 2.1%** |  |  |
|  FedEx Corp. | 8176 | 1416083 |
|  Union Pacific Corp. | 14925 | 3090520 |
|  |  | 4506603 |
|  **Utilities - 5.3%** |  |  |
|  AES Corp. | 51975 | 1494801 |
|  Entergy Corp. | 31375 | 3529688 |
|  NextEra Energy, Inc. | 41375 | 3458950 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **12** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value<br>($)** |
|  Xcel Energy, Inc. | 45075 | 3160208 |
|  |  | 11643647 |
|  **Total Common Stocks<br>(cost: $183,184,671)** |  | 218674453 |
|  **Short-Term Securities** - **0.1%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $308,949)** | 308949 | 308949 |
|  **Total Investments in Securities - 100.3%<br>(cost $183,493,620)** |  | 218983402 |
|  **Other Assets and Liabilities, net - (0.3)%** |  | (726295) |
|  **Net Assets - 100.0%** |  | $218257107 |

---

------

\* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br> **Quoted**<br> **Prices ($)** | **Level 2**<br> **Other significant<br>observable inputs ($)** | **Level 3**<br> **Significant**<br> **unobservable inputs ($)** | **Total ($)** |
|  Common Stocks<sup>\*\*</sup>  | 218674453 |  |  | 218674453 |
|  Short-Term Securities | 308949 |  |  | 308949 |
|  Total: | 218983402 |  |  | 218983402 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

DECEMBER 31, 2022<sub>13</sub>

------

&nbsp;&nbsp;&nbsp; **Sit Global Dividend Growth Fund - Class I and Class S**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Global Dividend Growth Fund is to provide current income that exceeds the dividend yield of the MSCI World Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in dividend-paying common stocks issued by U.S. and foreign companies. The Fund may invest the balance of its assets in preferred stocks, convertible bonds, and U.S. Treasury securities.

------

**Fund Performance** 

The Sit Global Dividend Growth Class I shares provided a return of +2.38% during the 6-month period ended December 31, 2022, compared to the return of the MSCI World Index<sup>®</sup> of +2.97%. The Fund's gross dividend yield (before deducting Fund expenses) was 2.15%, compared to a 2.21% dividend yield for the MSCI World Index<sup>®</sup>.

**Factors that Influenced the Fund's Performance** 

Contributing favorably to performance during the 6-month period were the Fund's holdings in semiconductors & semiconductor equipment and insurance and its underweight in automobiles & components. Specific holdings in these groups that helped returns included Broadcom, Applied Materials, Munich Reinsurance, and Arthur J. Gallagher, while not owning Tesla and Intel also assisted performance. Conversely, the Fund's overweight in software & services, underweight in energy, and stock selection in pharmaceuticals, biotechnology & life sciences, software & services, and energy detracted from performance. Owning At-lassian Corp. in software & services hurt returns. Also, the Fund did not own Exxon Mobil or Chevron in energy.

Geographically, the Fund's underweight and stock selection in North America and, additionally, its overweight in the United Kingdom added value during the 6-month period. In North America, owning JPMorgan Chase and Honeywell, while not owning Tesla or Amazon.com helped performance. The Fund also benefited from owning Shell Plc in the United Kingdom. However, the Fund's performance was hurt by stock selections in Asia/Pacific ex Japan and Non-Euroland, namely Atlas-sian, Singapore Technologies Engineering, and Lonza Group.

**Outlook and Positioning** 

The sharp stock market correction in 2022 has reduced valuation multiples and largely discounts our base case of a mild recession this year. Even so, we expect the market to stay volatile in 2023, as investors shift their focus from inflation to corporate earnings, while economic weakness broadens and exerts substantial pressure on profitability. Accordingly, equity portfolios remain well-diversified, with a quality bias. Our core investment focus remains on selecting quality growth stocks at attractive valuations. Quality, as we define it, refers to companies that have visible earnings growth, solid balance sheets and free cash flow generation, and proven management teams. We favor dividend-paying growth stocks, which allow investors to participate in a market rebound, with somewhat less volatility. Valuation is the other critical component,

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z07.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI World Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> 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. It is not possible to invest directly in an index.

------

as we evaluate opportunities where price-to-earnings (PE) multiple compression has been excessive relative to earnings growth prospects. We believe three sectors stand out as having both near- and long-term appeal for growth investors: technology, healthcare, and energy.

In 2022, technology stocks experienced their weakest absolute performance since the 2008 global financial crisis and their poorest relative performance since the post-tech bubble decline of 2000. As a result, the sector trades at a more reasonable valuation in relation to underlying profitability, balance sheet strength, and longer-term growth prospects. We believe the healthcare sector offers a good balance of defensive characteristics, driven by positive demographic drivers and above-market earnings growth for 2023 and beyond. Finally, we continue to selectively add energy exposure, as structural supply-side constraints suggest an extended period of elevated, albeit volatile, energy prices.

**Roger J. Sit Raymond E. Sit** 

**Kent L. Johnson** 

*Portfolio Managers* 

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| | |
|:---|:---|
| **14** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

 <br> as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit Global Dividend Growth<br>Fund** | **Sit Global Dividend Growth<br>Fund** | |
| | **Class I** | **Class S** |<br>**MSCI<br>World<br>Index** |
|  Six Month | 2.38% | 2.28% | 2.97% |
|  One Year | -18.04 | -18.26 | -18.14 |
|  Five Year | 6.11 | 5.84 | 6.14 |
|  Ten Year | 7.81 | 7.54 | 8.85 |
|  Since Inception<br> (9/30/08) | 8.24 | 7.97 | 7.76 |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> 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. It is not possible to invest directly in an index.

---

| | | |
|:---|:---|:---|
| **PORTFOLIO SUMMARY** | | |
| **Class I:** |  |  |
|  Net Asset Value 12/31/22: | $20.05 | Per Share |
|  Net Asset Value 6/30/22: | $19.77 | Per Share |
|  Net Assets: | $38.6 | Million |
| **Class S:** |  |  |
|  Net Asset Value 12/31/22: | $20.04 | Per Share |
|  Net Asset Value 6/30/22: | $19.74 | Per Share |
|  Net Assets: | $3.4 | Million |
|  Weighted Average Market Cap: | $372.4 | Billion |

---

**TOP 10 HOLDINGS**<br>

&nbsp;&nbsp;&nbsp;&nbsp;1. Microsoft Corp.

&nbsp;&nbsp;&nbsp;&nbsp;2. Apple, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;3. Johnson & Johnson

&nbsp;&nbsp;&nbsp;&nbsp;4. Shell, PLC, ADR

&nbsp;&nbsp;&nbsp;&nbsp;5. AstraZeneca, PLC, ADR

&nbsp;&nbsp;&nbsp;&nbsp;6. Broadcom, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;7. JPMorgan Chase & Co.

&nbsp;&nbsp;&nbsp;&nbsp;8. Accenture, PLC

&nbsp;&nbsp;&nbsp;&nbsp;9. PepsiCo, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;10. UnitedHealth Group, Inc.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z08.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **15** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Global Dividend Growth Fund** 

Investments are grouped by geographic region.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 97.3%** |  |  |
|  **Asia - 6.0%**  |  |  |
|  **Australia - 3.2%**  |  |  |
|  Atlassian Corp. <sup>\*</sup>  | 3525 | 453597 |
|  BHP Group, Ltd. ADR | 6150 | 381607 |
|  Macquarie Group, Ltd. | 3900 | 443331 |
|  Woodside Energy Group, Ltd., ADR | 2222 | 53795 |
|  |  | 1332330 |
|  **Japan - 1.9%**  |  |  |
|  Astellas Pharma, Inc. | 29900 | 457135 |
|  Recruit Holdings Co., Ltd. | 10800 | 343733 |
|  |  | 800868 |
|  **Singapore - 0.9%**  |  |  |
|  Singapore Technologies Engineering, Ltd. | 158600 | 396678 |
|  **Europe - 34.0%**  |  |  |
|  **France - 0.6%**  |  |  |
|  Safran SA, ADR | 7700 | 240548 |
|  **Germany - 5.3%**  |  |  |
|  Allianz SE, ADR | 35000 | 750750 |
|  Deutsche Post AG | 4050 | 152517 |
|  Infineon Technologies AG | 6425 | 195532 |
|  Muenchener Rueckversicherungs AG | 1500 | 488125 |
|  Siemens AG | 4350 | 603663 |
|  Siemens Energy AG | 1600 | 30101 |
|  |  | 2220688 |
|  **Ireland - 5.5%**  |  |  |
|  Accenture, PLC | 3675 | 980637 |
|  Linde, PLC | 1475 | 481115 |
|  Medtronic, PLC | 6200 | 481864 |
|  Trane Technologies, PLC | 2175 | 365596 |
|  |  | 2309212 |
|  **Spain - 1.7%**  |  |  |
|  Iberdrola SA | 60400 | 706681 |
|  **Sweden - 0.8%**  |  |  |
|  Telefonaktiebolaget LM Ericsson, ADR | 57600 | 336384 |
|  **Switzerland - 7.1%**  |  |  |
|  Chubb, Ltd. | 2650 | 584590 |
|  Logitech International SA | 9625 | 599156 |
|  Lonza Group AG | 950 | 465522 |
|  Nestle SA | 6075 | 703916 |
|  Partners Group Holding AG | 725 | 640437 |
|  |  | 2993621 |
|  **United Kingdom - 13.0%**  |  |  |
|  AstraZeneca, PLC, ADR | 15400 | 1044120 |
|  BAE Systems, PLC | 74675 | 772782 |
|  Compass Group, PLC | 9700 | 224862 |
|  Diageo, PLC, ADR | 4225 | 752853 |
|  Glencore, PLC, ADR | 6500 | 86580 |
|  London Stock Exchange Group, PLC | 6875 | 593111 |
|  Man Group, PLC | 162675 | 420275 |
|  RELX, PLC | 14450 | 399693 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Shell, PLC, ADR | 20525 | 1168899 |
|  |  | 5463175 |
|  **North America - 57.3%**  |  |  |
|  **United States - 57.3%**  |  |  |
|  Abbott Laboratories | 7400 | 812446 |
|  AES Corp. | 5100 | 146676 |
|  Alphabet, Inc. - Class A <sup>\*</sup>  | 9000 | 794070 |
|  Apple, Inc. | 19200 | 2494656 |
|  Applied Materials, Inc. | 8175 | 796081 |
|  Arthur J Gallagher & Co. | 3775 | 711738 |
|  Bank of America Corp. | 16300 | 539856 |
|  Broadcom, Inc. | 1825 | 1020412 |
|  Cheniere Energy, Inc. | 1325 | 198697 |
|  Constellation Brands, Inc. | 2750 | 637313 |
|  CVS Health Corp. | 6625 | 617384 |
|  Equifax, Inc. | 1000 | 194360 |
|  Euronet Worldwide, Inc. <sup>\*</sup>  | 2800 | 264264 |
|  FedEx Corp. | 1950 | 337740 |
|  Goldman Sachs Group, Inc. | 1400 | 480732 |
|  Home Depot, Inc. | 2550 | 805443 |
|  Honeywell International, Inc. | 3200 | 685760 |
|  Johnson & Johnson | 6925 | 1223301 |
|  JPMorgan Chase & Co. | 7350 | 985635 |
|  Lockheed Martin Corp. | 1565 | 761357 |
|  McDonald's Corp. | 1860 | 490166 |
|  Microsoft Corp. | 10725 | 2572069 |
|  Mondelez International, Inc. | 7100 | 473215 |
|  Otis Worldwide Corp. | 3875 | 303451 |
|  PepsiCo, Inc. | 4875 | 880718 |
|  Salesforce, Inc. <sup>\*</sup>  | 725 | 96128 |
|  Sherwin-Williams Co. | 1875 | 444994 |
|  Starbucks Corp. | 2950 | 292640 |
|  T Rowe Price Group, Inc. | 2450 | 267197 |
|  Thermo Fisher Scientific, Inc. | 1175 | 647061 |
|  Union Pacific Corp. | 4050 | 838634 |
|  UnitedHealth Group, Inc. | 1625 | 861542 |
|  Waste Management, Inc. | 5100 | 800088 |
|  WEC Energy Group, Inc. | 6150 | 576624 |
|  |  | 24052448 |
|  Total Common Stocks<br>(cost: $25,895,489) |  | 40852633 |
|  **Short-Term Securities - 2.6%**<br>|  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $1,076,206)** | 1076206 | 1076206 |
|  **Total Investments in Securities - 99.9%<br>(cost $26,971,695)** |  | 41928839 |
|  **Other Assets and Liabilities, net - 0.1%** |  | 60390 |
|  **Net Assets - 100.0%** |  | $41989229 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **16** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

\* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Australia | 1332330 |  |  | 1332330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 240548 |  |  | 240548 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Germany | 2220688 |  |  | 2220688 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ireland | 2309212 |  |  | 2309212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan | 800868 |  |  | 800868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore | 396678 |  |  | 396678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spain | 706681 |  |  | 706681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sweden | 336384 |  |  | 336384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Switzerland | 2993621 |  |  | 2993621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 5463175 |  |  | 5463175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 24052448 |  |  | 24052448 |
|  Short-Term Securities | 1076206 |  |  | 1076206 |
|  Total: | 41928839 |  |  | 41928839 |

---

Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **17** |

---

------

&nbsp;&nbsp;&nbsp; **Sit Large Cap Growth Fund**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Large Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in the common stocks of domestic growth companies with capitalizations of $5 billion or more at the time of purchase.

------

**Fund Performance** 

The Sit Large Cap Growth Fund's return was -0.99% during the 6-month period ended December 31, 2022, compared to a -1.48% return for the Russell 1000<sup>®</sup> Growth Index. The S&P 500<sup>®</sup> Index return for the period was +2.31%.

**Factors that Influenced the Fund's Performance** 

The Fund outperformed its benchmark, the Russell 1000<sup>®</sup> Growth Index, over the time horizon. The largest contributor to performance over the 6-month period was the Fund's stock selection and underweight position in the consumer durables sector, where the group drastically underperformed the market, as many companies here were negatively impacted by worsening consumer sentiment and higher interest rates. As for stock selection in the sector, both YETI Holdings and Activision Blizzard outperformed the sector, while not owning Tesla augmented returns. Another key factor in outperformance was an overweight position in the energy minerals sector, where stocks benefitted from increasing commodity prices. A key holding here was ConocoPhillips. Stock selection and an overweight position in health services also added to returns, as Covid-19's infection rates subsided, giving rise to resumed growth in elective care procedures, and as lower inflation and stronger pricing boosted margins. This benefited holdings, such as HCA Health-care. The two largest detractors to performance were the Fund's stock selection and overweight position in technology services and its stock selection and underweight position in health technology. Technology services holdings were negatively impacted by concerns over slowing growth, while health technology holdings, although they posted positive returns, did not keep pace with benchmark sector returns.

**Outlook and Positioning** 

An emphasis on stock picking relative to executing large sector bets is core to our strategy, as we do not see a case for sectoral valuation dislocations currently. Despite its quality orientation, the technology sector has significantly lagged the overall market, as "risk-off" market sentiment and slowing growth in key subsectors led to a massive re-rating. A sizable contraction in price-to-earnings (PE) multiples largely drove the 2022 weakness. As a result, the sector trades at a more reasonable valuation relative to underlying profitability, balance sheet strength, and longer-term growth prospects. While it may be too early to aggressively add to the sector, as earnings revisions will likely stay negative in the short term, long-term growth prospects remain promising. The sector's

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z09.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell 1000<sup>®</sup> Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> Russell 1000<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund's primary index.

------

growth drivers are secular and multifaceted, including cloud computing, artificial intelligence, cybersecurity, data analytics, automation, and the simple fact that electronic content (i.e., chips) is increasing in virtually all devices and equipment. Furthermore, we expect the slowdown in the economy, coupled with shortages of workers in many sectors, will drive corporations toward productivity solutions, including automation, digital transformation (to streamline workflows), and cloud computing (to reduce hardware and labor costs). Although consumer spending remained resilient throughout the second half of 2022, leading indicators, such as the savings rate, are signaling that discretionary consumer spending is set to slow into 2023, and it will be a difficult year for retailers and service providers in this space. Accordingly, the Fund continues to underweight retail.

**Roger J. Sit** 

**Ronald D. Sit** 

*Portfolio Managers* 

---

| | |
|:---|:---|
| **18** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
| | **Sit Large Cap<br>Growth Fund** | **Russell 1000<sup>®</sup><br>Growth Index<sup>1</sup>** | **Russell 1000<sup>®</sup>**<br> **Index<sup>2</sup>** |
|  Six Month | -0.99% | -1.48% | 2.30% |
|  One Year | -28.18 | -29.14 | -19.13 |
|  Five Year | 9.74 | 10.96 | 9.13 |
|  Ten Year | 12.26 | 14.10 | 12.37 |
|  Since Inception <sup>3</sup>  | 10.15 | 11.33 | 11.58 |
|  (9/2/82) |  |  |  |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> Russell 1000<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.

<sup>2</sup> Russell 1000<sup>®</sup> Index is an unmanaged index that measures the performance of approximately 1,000 of the largest U.S. companies by market capitalization.

<sup>3</sup> On 6/6/93, the Fund's investment objective changed to allow for a portfolio of 100% stocks. Prior to that time, the portfolio was required to contain no more than 80% stocks.

**PORTFOLIO SUMMARY** 

------

---

| | |
|:---|:---|
|  Net Asset Value 12/31/22: | $46.07 Per Share |
|  Net Asset Value 6/30/22: | $48.29 Per Share |
|  Net Assets: | $132.1 Million |
|  Weighted Average Market Cap: | $621.2 Billion |

---

**TOP HOLDINGS** 

------

1. Apple, Inc.

2. Microsoft Corp.

3. Alphabet, Inc.

4. UnitedHealth Group, Inc.

5. Amazon.com, Inc.

6. Broadcom, Inc.

7. NVIDIA Corp.

8. Applied Materials, Inc.

9. ConocoPhillips

10. Thermo Fisher Scientific, Inc.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z10.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **19** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Large Cap Growth Fund** 

Investments are grouped by economic sectors.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 99.1%** |  |  |
|  **Commercial Services - 0.7%** |  |  |
|  Equifax, Inc. | 4400 | 855184 |
|  **Communications - 1.1%** |  |  |
|  American Tower Corp. | 6950 | 1472427 |
|  **Consumer Durables - 1.2%** |  |  |
|  Activision Blizzard, Inc. | 8250 | 631537 |
|  YETI Holdings, Inc. <sup>\*</sup>  | 23950 | 989375 |
|  |  | 1620912 |
|  **Consumer Non-Durables - 5.5%** |  |  |
|  Constellation Brands, Inc. | 7425 | 1720744 |
|  Estee Lauder Cos., Inc. - Class A | 7600 | 1885636 |
|  Mondelez International, Inc. | 12850 | 856453 |
|  NIKE, Inc. | 9050 | 1058940 |
|  PepsiCo, Inc. | 10000 | 1806600 |
|  |  | 7328373 |
|  **Consumer Services - 3.5%** |  |  |
|  McDonald's Corp. | 6650 | 1752475 |
|  Visa, Inc. | 13650 | 2835924 |
|  |  | 4588399 |
|  **Electronic Technology - 21.0%** |  |  |
|  Apple, Inc. | 123875 | 16095079 |
|  Applied Materials, Inc. | 30000 | 2921400 |
|  Broadcom, Inc. | 7800 | 4361214 |
|  NVIDIA Corp. | 22700 | 3317378 |
|  Palo Alto Networks, Inc. <sup>\*</sup>  | 2400 | 334896 |
|  QUALCOMM, Inc. | 6325 | 695370 |
|  |  | 27725337 |
|  **Energy Minerals - 2.5%** |  |  |
|  Chevron Corp. | 2100 | 376929 |
|  ConocoPhillips | 24600 | 2902800 |
|  |  | 3279729 |
|  **Finance - 2.7%** |  |  |
|  Chubb, Ltd. | 5050 | 1114030 |
|  Goldman Sachs Group, Inc. | 5150 | 1768407 |
|  JPMorgan Chase & Co. | 4900 | 657090 |
|  |  | 3539527 |
|  **Health Services - 6.1%** |  |  |
|  Centene Corp. <sup>\*</sup>  | 16425 | 1347014 |
|  HCA Healthcare, Inc. | 5850 | 1403766 |
|  UnitedHealth Group, Inc. | 10125 | 5368073 |
|  |  | 8118853 |
|  **Health Technology - 7.6%** |  |  |
|  Abbott Laboratories | 15500 | 1701745 |
|  Dexcom, Inc. <sup>\*</sup>  | 22000 | 2491280 |
|  Johnson & Johnson | 9400 | 1660510 |
|  Medtronic, PLC | 15825 | 1229919 |
|  Thermo Fisher Scientific, Inc. | 5250 | 2891122 |
|  |  | 9974576 |
|  **Industrial Services - 1.6%** |  |  |
|  Cheniere Energy, Inc. | 13675 | 2050703 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Process Industries - 2.2%** |  |  |
|  Darling Ingredients, Inc. <sup>\*</sup>  | 13700 | 857483 |
|  Linde, PLC | 2650 | 864377 |
|  Sherwin-Williams Co. | 5225 | 1240049 |
|  |  | 2961909 |
|  **Producer Manufacturing - 5.3%** |  |  |
|  Aptiv, PLC <sup>\*</sup>  | 7275 | 677521 |
|  Honeywell International, Inc. | 8425 | 1805477 |
|  Northrop Grumman Corp. | 3475 | 1895995 |
|  Parker-Hannifin Corp. | 3950 | 1149450 |
|  Siemens AG, ADR | 21675 | 1491023 |
|  |  | 7019466 |
|  **Retail Trade - 8.2%** |  |  |
|  Amazon.com, Inc. <sup>\*</sup>  | 63000 | 5292000 |
|  Home Depot, Inc. | 8425 | 2661121 |
|  Lululemon Athletica, Inc. <sup>\*</sup>  | 4425 | 1417681 |
|  TJX Cos., Inc. | 18075 | 1438770 |
|  |  | 10809572 |
|  **Technology Services - 26.7%** |  |  |
|  Accenture, PLC | 10200 | 2721768 |
|  Adobe, Inc. <sup>\*</sup>  | 6250 | 2103313 |
|  Alphabet, Inc. - Class A <sup>\*</sup>  | 12500 | 1102875 |
|  Alphabet, Inc. - Class C <sup>\*</sup>  | 73500 | 6521655 |
|  Atlassian Corp. <sup>\*</sup>  | 7675 | 987619 |
|  Autodesk, Inc. <sup>\*</sup>  | 7700 | 1438899 |
|  EPAM Systems, Inc. <sup>\*</sup>  | 725 | 237611 |
|  Intuit, Inc. | 5200 | 2023944 |
|  Microsoft Corp. | 57600 | 13813632 |
|  Paycom Software, Inc. <sup>\*</sup>  | 2500 | 775775 |
|  salesforce.com, Inc. <sup>\*</sup>  | 15225 | 2018683 |
|  ServiceNow, Inc. <sup>\*</sup>  | 2275 | 883314 |
|  Splunk, Inc. <sup>\*</sup>  | 8100 | 697329 |
|  |  | 35326417 |
|  **Transportation - 2.4%** |  |  |
|  FedEx Corp. | 7575 | 1311990 |
|  Union Pacific Corp. | 9200 | 1905044 |
|  |  | 3217034 |
|  **Utilities - 0.8%** |  |  |
|  NextEra Energy, Inc. | 13100 | 1095160 |
|  **Total Common Stocks<br>(cost: $59,658,961)** |  | 130983578 |
|  **Short-Term Securities - 0.9%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $1,202,961)** | 1202961 | 1202961 |
|  **Total Investments in Securities - 100.0% (cost $60,861,922)** |  | 132186539 |
|  **Other Assets and Liabilities, net - (0.0)%** |  | (58692) |
|  **Net Assets - 100.0%** |  | $132127847 |

---

------

\* Non-income producing security.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **20** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

ADR — American Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks<sup>\*\*</sup>  | 130983578 |  |  | 130983578 |
|  Short-Term Securities | 1202961 |  |  | 1202961 |
|  Total: | 132186539 |  |  | 132186539 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **21** |

---

------

Sit ESG Growth Fund - Class I and Class S

**OBJECTIVE & STRATEGY** 

The objective of the Sit ESG Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in companies that the Adviser believes have strong environmental, social and corporate governance (ESG) practices at the time of purchase. The Fund invests in common stocks of U.S. and foreign companies, primarily of large to medium capitalizations (companies with market capitalization in excess of $2 billion).

------

**Fund Performance** 

The Sit ESG Growth Fund Class I shares provided a return of +2.69% during the 6-month period ended December 31, 2022, compared to the return of the MSCI World Index<sup>®</sup> of +2.97%.

**Factors that Influenced the Fund's Performance** 

Contributing favorably to performance during the 6-month period were the Fund's holdings in retailing and utilities, and its underweight in automobiles & components. Specific holdings in these groups that helped returns included TJX Cos., Home Depot, AES Corp., and Iberdrola SA Sponsored ADR, while not owning Amazon.com and Tesla also enhanced performance. Conversely, the Fund's overweight and stock selection in software & services, its underweight in energy, and its stock selection in consumer durables & apparel detracted from performance. Owning Alphabet Class A, Salesforce, and Microsoft in software & services and Adidas AG Sponsored ADR in consumer durables & apparel, while not owning Exxon Mobil or Chevron in energy, hurt returns.

Geographically, the Fund's underweight and stock selection in North America added value during the 6-month period. Specific holdings that helped performance included DexCom, Trane Technologies plc, TJX Cos., and Goldman Sachs Group. Also, not owning Amazon.com and Meta Platforms Class A aided returns. However, the Fund's performance was hurt by stock selection in Non-Euroland and Japan, and by both stock selection and an underweight in Asia/Pacific ex Japan. Specific names that detracted from returns included Lonza Group AG, Terumo Corp., and Singapore Technologies Engineering.

**Outlook and Positioning** 

The sharp stock market correction in 2022 has reduced valuation multiples and largely discounts our base case of a mild recession this year. Even so, we expect the market to stay volatile in 2023, as investors shift their focus from inflation to corporate earnings, while economic weakness broadens and exerts substantial pressure on profitability. Accordingly, equity portfolios remain well-diversified, with a quality bias. Our core investment focus remains on selecting quality growth stocks at attractive valuations. Quality, as we define it, refers to companies that have visible earnings growth, solid balance sheets and free cash flow generation, and proven management teams. Valuation is the other critical component, as we evaluate opportunities where price-to-earnings (PE) multiple compression has been excessive relative to earnings growth prospects. While portfolios continue to hold a combination of cyclical and non-cyclical companies, we plan to pivot to a pro-cyclical stance as the expected economic slowdown becomes fully embedded

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z11.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the MSCI World Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> 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. It is not possible to invest directly in an index. This is the Fund's primary index.

------

in valuations. We believe three sectors stand out as having both near- and long-term appeal for growth investors: technology, healthcare, and energy. In 2022, technology stocks experienced their weakest absolute performance since the 2008 global financial crisis and their poorest relative performance since the post-tech bubble decline of 2000. As a result, the sector trades at a more reasonable valuation relative to underlying profitability, balance sheet strength, and longer-term growth prospects. We believe the healthcare sector offers a good balance of defensive characteristics, driven by positive demographic drivers and above-market earnings growth for 2023 and beyond. Finally, we also continue to selectively add energy exposure, as structural supply-side constraints suggest an extended period of elevated, albeit volatile, energy prices.

**Roger J. Sit** 

**David A. Brown** 

**Kent L. Johnson** 

**Michael T. Manns** 

*Portfolio Managers* 

---

| | |
|:---|:---|
| **22** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit ESG Growth Fund** | **Sit ESG Growth Fund** | |
| | **Class I** | **Class S** |<br>**MSCI<br>World<br>Index**<sup>1</sup> |
|  Six Month | 2.69% | 2.58% | 2.97% |
|  One Year | -21.00 | -21.24 | -18.14 |
|  Five Year | 5.16 | 4.87 | 6.14 |
|  Since Inception | 7.73 | 7.45 | 9.09 |
|  (6/30/16) |  |  |  |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> 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. It is not possible to invest directly in an index.

**PORTFOLIO SUMMARY** 

------

---

| | | |
|:---|:---|:---|
|  **Class I:** |  |  |
|  Net Asset Value 12/31/22: | $14.79 | Per Share |
|  Net Asset Value 6/30/22: | $14.87 | Per Share |
|  Net Assets:<br>| $3.8  | Million  |
|  **Class S:** |  |  |
|  Net Asset Value 12/31/22: | $14.66 | Per Share |
|  Net Asset Value 6/30/22: | $14.74 | Per Share |
|  Net Assets: | $3.8 | Million |
|  Weighted Average Market Cap: | $389.6 | Billion |

---

**TOP HOLDINGS** 

------

1. Microsoft Corp.

2. Apple, Inc.

3. UnitedHealth Group, Inc.

4. Home Depot, Inc.

5. Alphabet, Inc. - Class A

6. Johnson & Johnson

7. Goldman Sachs Group, Inc.

8. AstraZeneca, PLC, ADR

9. Iberdrola SA, ADR

10. Allianz SE, ADR

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z12.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **23** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit ESG Growth Fund** 

Investments are grouped by geographic region.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 97.4%** |  |  |
|  **Asia** - **7.6%**  |  |  |
|  **Japan** - **6.6%**  |  |  |
|  Astellas Pharma, Inc. | 6400 | 97848 |
|  Keyence Corp. | 200 | 78360 |
|  Recruit Holdings Co., Ltd. | 3100 | 98665 |
|  Sony Group Corp., ADR | 1925 | 146839 |
|  Terumo Corp. | 2600 | 74212 |
|  |  | 495924 |
|  **Singapore** - **1.0%**  |  |  |
|  Singapore Technologies Engineering, Ltd. | 31200 | 78035 |
|  **Europe** - **38.0%**  |  |  |
|  **France** - **1.6%**  |  |  |
|  Faurecia SE <sup>\*</sup>  | 2358 | 35666 |
|  Safran SA, ADR | 2750 | 85910 |
|  |  | 121576 |
|  **Germany - 6.5%**  |  |  |
|  Allianz SE, ADR | 8800 | 188760 |
|  Deutsche Post AG | 1550 | 58370 |
|  Infineon Technologies AG | 1225 | 37280 |
|  Muenchener Rueckversicherungs AG | 275 | 89490 |
|  Siemens AG, ADR | 1775 | 122102 |
|  |  | 496002 |
|  **Ireland** - **5.8%**  |  |  |
|  Accenture, PLC | 575 | 153433 |
|  CRH, PLC, ADR | 1200 | 47748 |
|  Medtronic, PLC | 1225 | 95207 |
|  Trane Technologies, PLC | 875 | 147079 |
|  |  | 443467 |
|  **Netherlands** - **0.5%**  |  |  |
|  ASML Holding NV | 65 | 35516 |
|  **Spain** - **2.5%**  |  |  |
|  Iberdrola SA, ADR | 4050 | 189378 |
|  **Sweden** - **0.9%**  |  |  |
|  Telefonaktiebolaget LM Ericsson, ADR | 11175 | 65262 |
|  **Switzerland** - **6.5%**  |  |  |
|  Chubb, Ltd. | 250 | 55150 |
|  Logitech International SA | 1550 | 96488 |
|  Lonza Group AG | 185 | 90654 |
|  Nestle SA, ADR | 1200 | 138408 |
|  Novartis AG, ADR | 1200 | 108864 |
|  |  | 489564 |
|  **United Kingdom** - **13.7%**  |  |  |
|  AstraZeneca, PLC, ADR | 2950 | 200010 |
|  BAE Systems, PLC, ADR | 3500 | 147507 |
|  Coca-Cola Europacific Partners, PLC | 2100 | 116172 |
|  Compass Group, PLC | 1800 | 41727 |
|  Diageo, PLC, ADR | 785 | 139879 |
|  Entain, PLC | 4300 | 68698 |
|  Man Group, PLC | 44850 | 115871 |
|  RELX, PLC, ADR | 4700 | 130284 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Smith & Nephew, PLC | 5550 | 74444 |
|  |  | 1034592 |
|  **North America** - **51.8%**  |  |  |
|  **United States - 51.8%**  |  |  |
|  Adobe, Inc. <sup>\*</sup>  | 450 | 151439 |
|  AES Corp. | 3025 | 86999 |
|  Alphabet, Inc. - Class A <sup>\*</sup>  | 2500 | 220575 |
|  Apple, Inc. | 3600 | 467748 |
|  Broadcom, Inc. | 75 | 41935 |
|  Cheniere Energy, Inc. | 490 | 73480 |
|  CVS Health Corp. | 1550 | 144445 |
|  Dexcom, Inc. <sup>\*</sup>  | 1080 | 122299 |
|  Ecolab, Inc. | 325 | 47307 |
|  FedEx Corp. | 375 | 64950 |
|  Goldman Sachs Group, Inc. | 600 | 206028 |
|  Home Depot, Inc. | 745 | 235316 |
|  Johnson & Johnson | 1175 | 207564 |
|  JPMorgan Chase & Co. | 1075 | 144157 |
|  Lockheed Martin Corp. | 185 | 90001 |
|  Microsoft Corp. | 2000 | 479640 |
|  NIKE, Inc. | 850 | 99458 |
|  NVIDIA Corp. | 1000 | 146140 |
|  PepsiCo, Inc. | 875 | 158077 |
|  salesforce.com, Inc. <sup>\*</sup>  | 850 | 112702 |
|  Starbucks Corp. | 1000 | 99200 |
|  T Rowe Price Group, Inc. | 475 | 51803 |
|  TJX Cos., Inc. | 1380 | 109848 |
|  UnitedHealth Group, Inc. | 500 | 265090 |
|  Visa, Inc. | 475 | 98686 |
|  |  | 3924887 |
|  **Total Common Stocks<br>(cost: $5,256,105)** |  | 7374203 |
|  **Short-Term Securities** - **2.5%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $190,166)** | 190166 | 190166 |
|  **Total Investments in Securities - 99.9%<br>(cost $5,446,271)** |  | 7564369 |
|  **Other Assets and Liabilities, net -0.1%** |  | 8267 |
|  **Net Assets - 100.0%** |  | $7572636 |

---

------

\* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **24** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br> Significant<br>unobservable inputs ($) | Total ($) |
|  Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 121576 |  |  | 121576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Germany | 496002 |  |  | 496002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ireland | 443467 |  |  | 443467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan | 495924 |  |  | 495924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netherlands | 35516 |  |  | 35516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore | 78035 |  |  | 78035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spain | 189378 |  |  | 189378 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sweden | 65262 |  |  | 65262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Switzerland | 489564 |  |  | 489564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 1034592 |  |  | 1034592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 3924887 |  |  | 3924887 |
|  Short-Term Securities | 190166 |  |  | 190166 |
|  Total: | 7564369 |  |  | 7564369 |

---

Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **25** |

---

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&nbsp;&nbsp;&nbsp; **Sit Mid Cap Growth Fund**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in common stocks that, at the time of purchase, have market capitalizations that fall within the range of companies included in the Russell Midcap<sup>®</sup> Growth Index during the most recent 12-month period. The Russell Midcap<sup>®</sup> Growth Index ranged from approximately $406 million to $74 billion during the 12-month period ended December 31, 2022.

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**Fund Performance** 

The Sit Mid Cap Growth Fund's return during the 6-month period ended December 31, 2022 was +7.90%, compared to a +6.20% return for the Russell Midcap<sup>®</sup> Growth Index. The Russell Midcap<sup>®</sup> Index increased +5.43% during the period.

**Factors that Influenced the Fund's Performance** 

The Fund outperformed its benchmark during the latest 6-month period by +1.70%, as both stock selection and sector allocation were broadly positive across the portfolio. The health technology sector was a key source of outperformance in the Fund. An overweight position combined with owning equities that benefitted from the subsiding of the Covid-19 pandemic and had strong pricing power, such as DexCom and Sarepta Therapeutics, benefited healthcare performance. Stock selection within the technology services sector also helped returns, due to ownership of SAIC and PTC, while avoiding more speculative names within the benchmark augmented returns. Likewise, stock selection within the producer manufacturing sector contributed to performance, as Hubble, AGCO, and AMETEK benefited from strong pricing power and strength in the industrial and farm economies. In addition, the Fund benefitted from being underweight the retail trade sector, where many equities underperformed due to concerns over declining consumer sentiment; however, selective holdings of companies that offer the consumer a strong value proposition, such as TJX Cos., added to performance. Performance was negatively affected by the Fund's stock selection in electronic technology, non-energy minerals, and industrial services. In electronic technology, valuations of higher priced stocks declined as investors began to price in higher interest rates. Also, semiconductor stocks, such as Marvell Technology, fell as demand for chips weakened, while supplies remained high. In non-energy minerals, Trex underper-formed due to its exposure to household spending. Jacobs Solutions lagged in industrial services because of external factors, such as global geopolitical tensions and trade wars, and concerns about the company's ability to sustain its growth long-term.

**Outlook and Positioning** 

After a difficult year for markets, investors are increasingly pessimistic about prospects for 2023, as the Federal Reserve looks set to continue raising interest rates, even as leading indicators, such as purchasing managers' indexes (PMIs), continue to worsen. Accordingly, our investment focus remains on high quality companies with exposure to long-

**HYPOTHETICAL GROWTH OF $10,000** 

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![LOGO](g445807g00z13.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell Midcap<sup>®</sup> Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> Russell Midcap<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund's primary index.

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term, secular growth trends at discounted valuations – such as exceptional companies in the technology sector. We believe the healthcare sector offers a good balance of defensive characteristics, driven by positive demographic drivers and above-market earnings growth for 2023 and beyond. However, despite these positive fundamentals, the sector trades at a significant discount to the slower-growing, similarly-defensive consumer staples and utilities sectors. As we begin 2023, the factors that negatively impacted earnings growth, including supply chain issues, a high Covid-19 prevalence, and a strong U.S. dollar, have reversed. Moreover, industry sentiment has improved with the rollback of biopharmaceutical product pricing risk afforded by the passage of the Inflation Reduction Act, strong 2023 Medicare Advantage enrollment benefiting the managed care industry, and a robust pipeline of new product launches supporting the medical device industry.

**Roger J. Sit** 

**Kent L. Johnson** 

**Robert W. Sit** 

*Portfolio Managers* 

---

| | |
|:---|:---|
| **26** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
| | **Sit Mid Cap<br>Growth Fund** | **Russell<br>Midcap<sup>®</sup><br>Growth Index<sup>1</sup>** | **Russell<br>Midcap<sup>®</sup><br>Index<sup>2</sup>** |
|  Six Month | 7.90% | 6.20% | 5.43% |
|  One Year | -24.03 | -26.72 | -17.32 |
|  Five Year | 7.23 | 7.64 | 7.10 |
|  Ten Year | 9.17 | 11.41 | 10.96 |
|  Since Inception | 10.99 | n/a | n/a |
|  (9/2/82)<br>|  |  |  |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> Russell Midcap<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.

<sup>2</sup> Russell Midcap<sup>®</sup> Index is an unmanaged index that measures the performance of approximately 800 of the smallest companies in the Russell 1000<sup>®</sup> Index.

**PORTFOLIO SUMMARY** 

------

---

| | |
|:---|:---|
|  Net Asset Value 12/31/22: | $17.76 Per Share |
|  Net Asset Value 6/30/22: | $16.96 Per Share |
|  Net Assets: | $170.1 Million |
|  Weighted Average Market Cap: | $34.2 Billion |

---

**TOP 10 HOLDINGS** 

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1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arista Networks, Inc.

2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dexcom, Inc.

3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Broadcom, Inc.

4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PTC, Inc.

5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ulta Beauty, Inc.

6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thermo Fisher Scientific, Inc.

7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TJX Cos., Inc.

8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Waste Connections, Inc.

9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nexstar Media Group, Inc.

10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arthur J Gallagher & Co.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z14.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **27** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Mid Cap Growth Fund** 

Investments are grouped by economic sectors.

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 98.6%** |  |  |
|  **Commercial Services - 3.0%** |  |  |
|  ASGN, Inc. <sup>\*</sup>  | 13525 | 1102017 |
|  Booz Allen Hamilton Holding Corp. | 29450 | 3078114 |
|  Equifax, Inc. | 4300 | 835748 |
|  |  | 5015879 |
|  **Consumer Durables - 1.3%** |  |  |
|  Take-Two Interactive Software, Inc. <sup>\*</sup>  | 4892 | 509404 |
|  YETI Holdings, Inc. <sup>\*</sup>  | 42000 | 1735020 |
|  |  | 2244424 |
|  **Consumer Non-Durables - 1.3%** |  |  |
|  Coca-Cola Europacific Partners, PLC | 40700 | 2251524 |
|  **Consumer Services - 3.2%** |  |  |
|  Nexstar Media Group, Inc. | 20650 | 3614370 |
|  Vail Resorts, Inc. | 7700 | 1835295 |
|  |  | 5449665 |
|  **Electronic Technology - 12.4%** |  |  |
|  Applied Materials, Inc. | 28275 | 2753419 |
|  Arista Networks, Inc. <sup>\*</sup>  | 44850 | 5442548 |
|  Broadcom, Inc. | 9100 | 5088083 |
|  Ciena Corp. <sup>\*</sup>  | 16525 | 842444 |
|  Marvell Technology, Inc. | 47850 | 1772364 |
|  MKS Instruments, Inc. | 15100 | 1279423 |
|  Monolithic Power Systems, Inc. | 5400 | 1909494 |
|  Skyworks Solutions, Inc. | 21400 | 1950182 |
|  |  | 21037957 |
|  **Energy Minerals - 3.2%** |  |  |
|  Northern Oil & Gas, Inc. | 73100 | 2252942 |
|  Oasis Petroleum, Inc. | 18850 | 2578869 |
|  Texas Pacific Land Corp. | 240 | 562615 |
|  |  | 5394426 |
|  **Finance - 9.5%** |  |  |
|  Air Lease Corp. | 32900 | 1264018 |
|  American Financial Group, Inc. | 7325 | 1005576 |
|  Ameriprise Financial, Inc. | 10000 | 3113700 |
|  Arthur J Gallagher & Co. | 18900 | 3563406 |
|  Carlyle Group, Inc. | 85700 | 2557288 |
|  First Republic Bank | 16550 | 2017279 |
|  Intercontinental Exchange, Inc. | 25300 | 2595527 |
|  |  | 16116794 |
|  **Health Services - 4.0%** |  |  |
|  Encompass Health Corp. | 47600 | 2846956 |
|  Molina Healthcare, Inc. <sup>\*</sup>  | 4475 | 1477734 |
|  Tenet Healthcare Corp. <sup>\*</sup>  | 50950 | 2485851 |
|  |  | 6810541 |
|  **Health Technology - 16.6%** |  |  |
|  Align Technology, Inc. <sup>\*</sup>  | 6025 | 1270672 |
|  BioMarin Pharmaceutical, Inc. <sup>\*</sup>  | 23500 | 2432015 |
|  Bio-Techne Corp. | 25600 | 2121728 |
|  Cooper Cos, Inc. | 4250 | 1405347 |
|  Dexcom, Inc. <sup>\*</sup>  | 48040 | 5440050 |
|  Exact Sciences Corp. <sup>\*</sup>  | 29650 | 1467972 |
|  Inmode, Ltd. <sup>\*</sup>  | 55400 | 1977780 |
|  Insulet Corp. <sup>\*</sup>  | 11800 | 3473802 |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Jazz Pharmaceuticals, PLC <sup>\*</sup>  | 5700 | 908067 |
|  PerkinElmer, Inc. | 6700 | 939474 |
|  Sarepta Therapeutics, Inc. <sup>\*</sup>  | 18275 | 2368075 |
|  Thermo Fisher Scientific, Inc. | 8100 | 4460589 |
|  |  | 28265571 |
|  **Industrial Services - 6.0%** |  |  |
|  Cheniere Energy, Inc. | 20000 | 2999200 |
|  Jacobs Solutions, Inc. | 27800 | 3337946 |
|  Waste Connections, Inc. | 29400 | 3897264 |
|  |  | 10234410 |
|  **Non-Energy Minerals - 1.0%** |  |  |
|  Trex Co., Inc. <sup>\*</sup>  | 38625 | 1634996 |
|  **Process Industries - 1.3%** |  |  |
|  Darling Ingredients, Inc. <sup>\*</sup>  | 36450 | 2281406 |
|  **Producer Manufacturing - 8.1%** |  |  |
|  AGCO Corp. | 12700 | 1761363 |
|  AMETEK, Inc. | 14675 | 2050391 |
|  Aptiv, PLC <sup>\*</sup>  | 8800 | 819544 |
|  Carlisle Cos., Inc. | 11975 | 2821909 |
|  Donaldson Co., Inc. | 22950 | 1351066 |
|  Dover Corp. | 21875 | 2962094 |
|  Hubbell, Inc. | 8850 | 2076918 |
|  |  | 13843285 |
|  **Retail Trade - 6.5%** |  |  |
|  Lululemon Athletica, Inc. <sup>\*</sup>  | 6300 | 2018394 |
|  TJX Cos., Inc. | 55175 | 4391930 |
|  Ulta Beauty, Inc. <sup>\*</sup>  | 9700 | 4549979 |
|  |  | 10960303 |
|  **Technology Services - 19.2%** |  |  |
|  Altair Engineering, Inc. <sup>\*</sup>  | 24800 | 1127656 |
|  ANSYS, Inc. <sup>\*</sup>  | 10750 | 2597092 |
|  Aspen Technology, Inc. <sup>\*</sup>  | 8358 | 1716733 |
|  Atlassian Corp. <sup>\*</sup>  | 16950 | 2181126 |
|  Autodesk, Inc. <sup>\*</sup>  | 14800 | 2765676 |
|  Booking Holdings, Inc. <sup>\*</sup>  | 450 | 906876 |
|  Dynatrace, Inc. <sup>\*</sup>  | 65375 | 2503863 |
|  EPAM Systems, Inc. <sup>\*</sup>  | 3000 | 983220 |
|  Euronet Worldwide, Inc. <sup>\*</sup>  | 16075 | 1517158 |
|  Globant SA <sup>\*</sup>  | 6975 | 1172916 |
|  GoDaddy, Inc. <sup>\*</sup>  | 27075 | 2025752 |
|  HubSpot, Inc. <sup>\*</sup>  | 7650 | 2211844 |
|  Paycom Software, Inc. <sup>\*</sup>  | 7600 | 2358356 |
|  PTC, Inc. <sup>\*</sup>  | 39600 | 4753584 |
|  Science Applications International Corp. | 18150 | 2013380 |
|  Splunk, Inc. <sup>\*</sup>  | 20900 | 1799281 |
|  |  | 32634513 |
|  **Transportation - 1.3%** |  |  |
|  Alaska Air Group, Inc. <sup>\*</sup>  | 17300 | 742862 |
|  Knight-Swift Transportation Holdings, Inc. | 28500 | 1493685 |
|  |  | 2236547 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **28** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Utilities - 0.7%** |  |  |
|  WEC Energy Group, Inc. | 12800 | 1200128 |
|  **Total Common Stocks<br>(cost: $94,833,208)** |  | 167612369 |
|  **Short-Term Securities - 1.5%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $2,601,720)** | 2601720 | 2601720 |
|  **Total Investments in Securities - 100.1%<br>(cost $97,434,928)** |  | 170214089 |
|  **Other Assets and Liabilities, net - (0.1)%** |  | (143958) |
|  **Net Assets - 100.0%** |  | $170070131 |

---

<u> </u>

\* Non-income producing security.

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks<sup>\*\*</sup>  | 167612369 |  |  | 167612369 |
|  Short-Term Securities | 2601720 |  |  | 2601720 |
|  Total: | 170214089 |  |  | 170214089 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **29** |

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&nbsp;&nbsp;&nbsp; **Sit Small Cap Dividend Growth Fund Class I and Class S**<br>

**OBJECTIVE & STRATEGY** 

The objectives of the Sit Small Cap Dividend Growth Fund is to provide current income that exceeds the Fund's benchmark index and that grows over a period of years. Secondarily the Fund seeks long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in small cap dividend-paying common stocks that have market capitalizations at the time of purchase of up to $3.0 billion, or up to the market capitalization of the largest company included in the Russell 2000<sup>®</sup> Index measured at the end of the previous twelve months ($25.5 billion as of June 30, 2022). The Fund may invest the balance of its assets in preferred stocks, convertible bonds, U.S Treasury securities (including Treasury bills, notes and bonds), closed-end investment companies, and master limited partnerships.

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**Fund Performance** 

The Sit Small Cap Dividend Growth Fund Class I posted a +6.19% return during the 6-month period ended December 31, 2022, compared to the +3.91% return for the Russell 2000<sup>®</sup> Index. The Fund's gross dividend yield (before deducting Fund expenses) was 2.06% as of 12/31/22, compared to a yield of 1.48% for the Russell 2000<sup>®</sup> Index.

**Factors that Influenced the Fund's Performance** 

During the 6-month period ending December 31, 2022, the Fund posted strong absolute and relative returns, outperforming the benchmark Russell 2000<sup>®</sup> Index by +2.28%. The Fund's stock selection and slight overweight position in the producer manufacturing sector contributed to outperformance. Holdings, such as Hubbell, AGCO, and Belden, outperformed, due to the resilient industrial and farm economies, combined with value-added products that allowed for pricing power in an inflationary environment. Stock selection within the finance sector was another key to strong performance during the period. Here, the fund benefitted from holdings levered to the industrial economy with strong pricing power (H&E Equipment Services) and more defensive holdings within the life insurance and property and casualty insurance industries that have significantly lower credit risk than regional banks. The Fund's focus on stable, cash flow positive, dividend-paying companies led it underweight the largely non-dividend-paying technology services sector, which benefited returns. Technology services was the second worst-performing sector during the period, as rising interest rates weighed on richly valued equities within the group. Two areas that detracted from performance were stock selection in the electronic technology and consumer durables sectors. Performance in electronic technology was adversely affected by macroeconomic pressures, while consumer durables holdings were weighed down by declining consumer sentiment and higher interest rates.

**Outlook and Positioning** 

Given a volatile macro backdrop and continued interest rate increases, we believe dividend-paying companies will remain attractive, based on our expectation for continued market volatility and economic growth concerns. While the current yield of the Fund is already well above benchmark yields, we anticipate another year of solid dividend growth in 2023. Within the dividend-paying universe, energy and defensive sectors, such as utilities, consumer staples, and property and casualty

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z15.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years (or for the life of the Fund if shorter) as compared to the performance of the Russell 2000<sup>®</sup> Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> Russell 2000<sup>®</sup> Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000<sup>®</sup> Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization. It is not possible to invest directly in an index. This is the Fund's primary index.

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insurance, led the outperformance over the past year. We believe many of these sectors should continue to fare well in the first half of 2023, given less exposure to economic weakness due to their "sticky" business models. In particular, energy looks attractive, as valuations have compressed, and companies should be able to maintain high margins due to elevated energy prices, supported by continued supply-side constraints. Cash generation will continue to be returned to shareholders in the form of dividends and share repurchases. We also believe there are attractive long-term opportunities in areas overlooked by investors over the past year, especially in healthcare companies with defensive business models and attractive valuations. We also prefer producer manufacturing companies levered to secular trends, such as electrification, which should benefit from an increase in government spending.

---

| | |
|:---|:---|
|  **Roger J. Sit** | **Michael T. Manns** |
|  **Kent L. Johnson** | **Robert W. Sit** |
|  *Portfolio Managers* |  |

---

---

| | |
|:---|:---|
| **30** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

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**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit Small Cap Dividend<br>Growth Fund** | **Sit Small Cap Dividend<br>Growth Fund** | |
| |<br>**Class I** |<br>**Class S** |<br>**Russell<br>2000<sup>®</sup>**<br>**Index<sup>1</sup>** |
|  Six Month | 6.19% | 5.99% | 3.91% |
|  One Year | -17.07 | -17.35 | -20.44 |
|  Five Year | 4.65 | 4.37 | 4.13 |
|  Since Inception | 6.32 | 6.05 | 5.90 |
|  (3/31/15) |  |  |  |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> Russell 2000<sup>®</sup> Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000<sup>®</sup> Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization. It is not possible to directly invest in an index.

**PORTFOLIO SUMMARY** 

------

---

| | | |
|:---|:---|:---|
|  **Class I:** |  |  |
|  Net Asset Value 12/31/22: | $13.11 | Per Share |
|  Net Asset Value 6/30/22: | $12.85 | Per Share |
|  Net Assets: | $14.8 | Million |
|  **Class S:** |  |  |
|  Net Asset Value 12/31/22: | $13.10 | Per Share |
|  Net Asset Value 6/30/22: | $12.84 | Per Share |
|  Net Assets: | $4.7 | Million |
|  Weighted Average Market Cap: | $5.7 | Billion |

---

**TOP 10 HOLDINGS** 

------

1. KBR, Inc.

2. Monolithic Power Systems, Inc.

3. Olin Corp.

4. Northern Oil & Gas, Inc.

5. Nexstar Media Group, Inc.

6. Oasis Petroleum, Inc.

7. Old National Bancorp

8. Halozyme Therapeutics, Inc.

9. Stifel Financial Corp.

10. TFI International, Inc.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z16.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **31** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Small Cap Dividend Growth Fund** 

Investments are grouped by economic sectors.

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 97.4%** |  |  |
|  **Commercial Services - 5.1%** |  |  |
|  Booz Allen Hamilton Holding Corp. | 3200 | 334464 |
|  Brink's Co. | 1825 | 98021 |
|  Colliers International Group, Inc. | 2050 | 188682 |
|  FTI Consulting, Inc. <sup>\*</sup>  | 850 | 134980 |
|  World Fuel Services Corp. | 8675 | 237087 |
|  |  | 993234 |
|  **Consumer Durables - 2.4%** |  |  |
|  MDC Holdings, Inc. | 4050 | 127980 |
|  National Presto Industries, Inc. | 750 | 51345 |
|  Thor Industries, Inc. | 2300 | 173627 |
|  YETI Holdings, Inc. <sup>\*</sup>  | 2700 | 111537 |
|  |  | 464489 |
|  **Consumer Non-Durables - 1.7%** |  |  |
|  Crocs, Inc. <sup>\*</sup>  | 1375 | 149091 |
|  Sensient Technologies Corp. | 2450 | 178654 |
|  |  | 327745 |
|  **Consumer Services - 2.9%** |  |  |
|  Nexstar Media Group, Inc. | 2250 | 393818 |
|  Vail Resorts, Inc. | 700 | 166845 |
|  |  | 560663 |
|  **Electronic Technology - 5.6%** |  |  |
|  Coherent Corp. <sup>\*</sup>  | 2450 | 85995 |
|  Entegris, Inc. | 991 | 64999 |
|  MKS Instruments, Inc. | 3275 | 277491 |
|  Monolithic Power Systems, Inc. | 1200 | 424332 |
|  Power Integrations, Inc. | 3400 | 243848 |
|  |  | 1096665 |
|  **Energy Minerals - 4.0%** |  |  |
|  Northern Oil & Gas, Inc. | 13075 | 402972 |
|  Oasis Petroleum, Inc. | 2810 | 384436 |
|  |  | 787408 |
|  **Finance - 28.2%** |  |  |
|  Air Lease Corp. | 4225 | 162324 |
|  American Financial Group, Inc. | 1875 | 257400 |
|  Artisan Partners Asset Management, Inc. | 6300 | 187110 |
|  Associated Banc-Corp. | 10100 | 233209 |
|  Axis Capital Holdings, Ltd. | 6300 | 341271 |
|  Broadstone Net Lease, Inc. | 11800 | 191278 |
|  Cadence Bank | 9450 | 233037 |
|  Carlyle Group, Inc. | 8075 | 240958 |
|  CNO Financial Group, Inc. | 14000 | 319900 |
|  CubeSmart | 5250 | 211312 |
|  Essential Properties Realty Trust, Inc. | 10050 | 235873 |
|  Evercore Partners, Inc. | 1900 | 207252 |
|  H&E Equipment Services, Inc. | 6750 | 306450 |
|  Hannon Armstrong Sust. Inf. Cap., Inc. | 4825 | 139829 |
|  Hanover Insurance Group, Inc. | 1275 | 172291 |
|  Hercules Capital, Inc. | 7725 | 102125 |
|  Horace Mann Educators Corp. | 3625 | 135466 |
|  Old National Bancorp | 20675 | 371737 |
|  Physicians Realty Trust | 11250 | 162787 |
|  Piper Sandler Cos | 1450 | 188776 |
|  PotlatchDeltic Corp. | 2810 | 123612 |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Provident Financial Services, Inc. | 12400 | 264864 |
|  Stifel Financial Corp. | 6000 | 350220 |
|  STORE Capital Corp. | 6225 | 199573 |
|  Western Alliance Bancorp | 2775 | 165279 |
|  |  | 5503933 |
|  **Health Services - 4.1%** |  |  |
|  Addus HomeCare Corp. <sup>\*</sup>  | 2450 | 243750 |
|  Encompass Health Corp. | 4200 | 251202 |
|  Tenet Healthcare Corp. <sup>\*</sup>  | 6400 | 312256 |
|  |  | 807208 |
|  **Health Technology - 7.5%** |  |  |
|  AtriCure, Inc. <sup>\*</sup>  | 5500 | 244090 |
|  Atrion Corp. | 250 | 139862 |
|  Bio-Techne Corp. | 1300 | 107744 |
|  Halozyme Therapeutics, Inc. <sup>\*</sup>  | 6175 | 351358 |
|  Inmode, Ltd. <sup>\*</sup>  | 6250 | 223125 |
|  Seres Therapeutics, Inc. <sup>\*</sup>  | 31400 | 175840 |
|  STERIS, PLC | 975 | 180073 |
|  Twist Bioscience Corp. <sup>\*</sup>  | 1425 | 33929 |
|  |  | 1456021 |
|  **Industrial Services - 5.1%** |  |  |
|  EMCOR Group, Inc. | 2075 | 307328 |
|  KBR, Inc. | 10775 | 568920 |
|  MYR Group, Inc. <sup>\*</sup>  | 1400 | 128898 |
|  |  | 1005146 |
|  **Non-Energy Minerals - 3.1%** |  |  |
|  AZEK Co., Inc. <sup>\*</sup>  | 5700 | 115824 |
|  Commercial Metals Co. | 3950 | 190785 |
|  Eagle Materials, Inc. | 1575 | 209239 |
|  MP Materials Corp. <sup>\*</sup>  | 3575 | 86801 |
|  |  | 602649 |
|  **Process Industries - 6.1%** |  |  |
|  Avient Corp. | 2125 | 71740 |
|  Cabot Corp. | 700 | 46788 |
|  Huntsman Corp. | 4650 | 127782 |
|  Mativ Holdings, Inc. | 3428 | 71645 |
|  Olin Corp. | 7625 | 403668 |
|  Scotts Miracle-Gro Co. | 1300 | 63167 |
|  Silgan Holdings, Inc. | 5800 | 300672 |
|  Stepan Co. | 950 | 101137 |
|  |  | 1186599 |
|  **Producer Manufacturing - 10.8%** |  |  |
|  AGCO Corp. | 1350 | 187231 |
|  AZZ, Inc. | 3650 | 146730 |
|  Belden, Inc. | 3175 | 228283 |
|  Carlisle Cos, Inc. | 1175 | 276889 |
|  Crane Holdings Co. | 3275 | 328974 |
|  Donaldson Co., Inc. | 2675 | 157477 |
|  EnPro Industries, Inc. | 2050 | 222815 |
|  Hubbell, Inc. | 1025 | 240547 |
|  Lincoln Electric Holdings, Inc. | 1325 | 191449 |
|  Regal Rexnord Corp. | 1042 | 125019 |
|  |  | 2105414 |
|  **Retail Trade - 2.4%** |  |  |
|  Boot Barn Holdings, Inc. <sup>\*</sup>  | 3700 | 231324 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **32** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Casey's General Stores, Inc. | 1025 | 229959 |
|  |  | 461283 |
|  **Technology Services - 2.5%** |  |  |
|  Altair Engineering, Inc. <sup>\*</sup>  | 800 | 36376 |
|  Globant SA <sup>\*</sup>  | 1625 | 273260 |
|  nCino, Inc. <sup>\*</sup>  | 4800 | 126912 |
|  Science Applications International Corp. | 500 | 55465 |
|  |  | 492013 |
|  **Transportation - 3.6%** |  |  |
|  Knight-Swift Transportation Holdings, Inc. | 3700 | 193917 |
|  Marten Transport, Ltd. | 8450 | 167141 |
|  TFI International, Inc. | 3475 | 348334 |
|  |  | 709392 |
|  **Utilities - 2.3%** |  |  |
|  Black Hills Corp. | 3400 | 239156 |
|  Chesapeake Utilities Corp. | 950 | 112271 |
|  Spire, Inc. | 1325 | 91239 |
|  |  | 442666 |
|  **Total Common Stocks<br>(cost: $15,359,907)** |  | 19002528 |
|  **Short-Term Securities - 1.5%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $292,105)** | 292105 | 292105 |
|  **Total Investments in Securities -98.9%<br>(cost $15,652,012)** |  | 19294633 |
|  **Other Assets and Liabilities, net - 1.1%** |  | 218731 |
|  **Net Assets - 100.0%** |  | $19513364 |

---

------

\* Non-income producing security.

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br> Quoted<br>Prices ($) | **Level 2**<br> Other significant<br>observable inputs ($) | **Level 3** <br> Significant<br>unobservable inputs ($) | Total ($) |
|  Common Stocks<sup>\*\*</sup>  | 19002528 |  |  | 19002528 |
|  Short-Term Securities | 292105 |  |  | 292105 |
|  Total: | 19294633 |  |  | 19294633 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **33** |

---

------

&nbsp;&nbsp;&nbsp; **Sit Small Cap Growth Fund** <br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in common stocks of companies with market capitalizations at the time of purchase of up to $3.0 billion, or up to the market capitalization of the largest company included in the Russell 2000<sup>®</sup> measured at the end of the previous twelve months ($25.5 billion as of June 30, 2022). The Adviser invests in a diversified group of growing small companies it believes exhibit the potential for superior growth. The Adviser believes that a company's earnings growth is the primary determinant of its potential long-term return and evaluates a company's potential for above average long-term earnings and revenue growth.

------

**Fund Performance** 

The Sit Small Cap Growth Fund return was +3.43% during the 6-month period ended December 31, 2022. This compares to the return of +4.38% for the Russell 2000<sup>®</sup> Growth Index and a +3.91% increase for the Russell 2000<sup>®</sup> Index.

**Factors that Influenced the Fund's Performance** 

During the 6-month period ending December 31, 2022, the Fund posted positive returns, but moderately lagged its benchmark. The largest detractor to the Fund's performance was a small overweight position in the electronic technology sector, in conjunction with adverse stock selection. Here, high growth holdings, such as Coherent, MKS Instruments, and Monolithic Power Systems, were negatively affected by rising interest rates weighing on valuations combined with concerns over a slowdown in technology demand and supply chain pressures. Additionally, performance was negatively impacted by the Fund's stock selection in commercial services and non-energy minerals. A variety of different factors negatively impacted holdings in commercial services, including commercial real estate concerns (Colliers International) and slower federal IT contract work (ASGN). In non-energy minerals, Trex is being affected by an inventory channel slowdown and housing headwinds. Conversely, performance was helped by stock selection in the technology services, producer manufacturing, transportation, and health services sectors. In technology services, PTC, Paycom Software, and Aspen Technologies outperformed due to resilient business models and strong pricing power. Holdings in the producer manufacturing space added to performance, with companies, such as Hubbell, Belden, and Crane Holdings, benefiting from a resilient industrial economy and strong pricing power, which offset inflationary headwinds. In transportation, TFI International, Marten Transport, and Knight-Swift gained from strong pricing power.

**Outlook and Positioning** 

After drastically underperforming large cap indices in the first half of 2022, small cap indices outperformed in the second half of the year, as investors looked to find equities that had been oversold in the first half. Since market volatility is likely to remain elevated through at least the first half of 2023, driven by continued interest rate increases and worsening economic data, we believe that this backdrop presents an opportunity for stock pickers. We believe investors will be rewarded for identifying companies that can sustain earnings growth and their valuations, even as cyclical conditions deteriorate. Firms with pricing

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z17.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the Russell 2000<sup>®</sup> Growth Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> Russell 2000<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index. This is the Fund's primary index.

------

power and difficult to replace products will continue to fare particularly well, even if inflation pressures begin to subside. The Fund is broadly overweight technology services, as we view these holdings to be well-positioned to benefit from secular trends, such as increasing 5G adoption and the growth of the internet of things, and they have deep, competitive moats that should allow for pricing power. The Fund is also focused on companies within the industrial services sector industries, where the inflationary environment (even if it decelerates) should help pricing and margin expansion. Our focus in this sector is on engineering firms that will benefit from pent-up demand stemming from years of underinvestment and from increased government spending, especially an uptick in spending on electrical infrastructure stemming from the recent passage of the Inflation Reduction Act.

---

| | |
|:---|:---|
| **Roger J. Sit** | **Kent L. Johnson** |
| **Robert W. Sit** |  |
| *Portfolio Managers* | *Portfolio Managers* |

---

---

| | |
|:---|:---|
| **34** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
| | **Sit Small Cap<br>Growth Fund** | **Russell 2000<sup>®</sup><br>Growth Index<sup>1</sup>** | **Russell 2000<sup>®</sup>**<br> **Index <sup>2</sup>**  |
|  Six Month | 3.43% | 4.38% | 3.91% |
|  One Year | -25.55 | -26.36 | -20.44 |
|  Five Year | 6.29 | 3.51 | 4.13 |
|  Ten Year | 8.09 | 9.20 | 9.01 |
|  Since Inception<br> (7/1/94) | 9.52 | 7.47 | 8.67 |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Return do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> Russell 2000<sup>®</sup> Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.

<sup>2</sup> Russell 2000<sup>®</sup> Index is an unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000<sup>®</sup> Index, an index consisting of the 3,000 largest U.S. companies based on market capitalization.

**PORTFOLIO SUMMARY** 

------

---

| | |
|:---|:---|
|  Net Asset Value 12/31/22: | $53.29 Per Share |
|  Net Asset Value 6/30/22: | $52.41 Per Share |
|  Net Assets: | $98.9 Million |
|  Weighted Average Market Cap: | $9.0 Billion |

---

**TOP 10 HOLDINGS** 

------

1. Olin Corp.

2. Waste Connections, Inc.

3. KBR, Inc.

4. Nexstar Media Group, Inc.

5. PTC, Inc.

6. Oasis Petroleum, Inc.

7. Northern Oil & Gas, Inc.

8. TFI International, Inc.

9. Monolithic Power Systems, Inc.

10. Paycom Software, Inc.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z18.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **35** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Small Cap Growth Fund** 

Investments are grouped by economic sectors.

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 98.1%** |  |  |
|  **Commercial Services - 5.4%** |  |  |
|  ASGN, Inc. <sup>\*</sup>  | 19450 | 1584786 |
|  Booz Allen Hamilton Holding Corp. | 16900 | 1766388 |
|  Colliers International Group, Inc. | 12700 | 1168908 |
|  FTI Consulting, Inc. <sup>\*</sup>  | 5250 | 833700 |
|  |  | 5353782 |
|  **Consumer Durables - 2.3%** |  |  |
|  Take-Two Interactive Software, Inc. <sup>\*</sup>  | 4075 | 424330 |
|  Thor Industries, Inc. | 11200 | 845488 |
|  YETI Holdings, Inc. <sup>\*</sup>  | 25325 | 1046176 |
|  |  | 2315994 |
|  **Consumer Services - 3.1%** |  |  |
|  Nexstar Media Group, Inc. | 12725 | 2227257 |
|  Vail Resorts, Inc. | 3550 | 846142 |
|  |  | 3073399 |
|  **Electronic Technology - 8.4%** |  |  |
|  Arista Networks, Inc. <sup>\*</sup>  | 15600 | 1893060 |
|  Ciena Corp. <sup>\*</sup>  | 14150 | 721367 |
|  Coherent Corp. <sup>\*</sup>  | 20075 | 704633 |
|  Entegris, Inc. | 5249 | 344282 |
|  MKS Instruments, Inc. | 13400 | 1135382 |
|  Monolithic Power Systems, Inc. | 5675 | 2006737 |
|  Skyworks Solutions, Inc. | 10800 | 984204 |
|  Stratasys, Ltd. <sup>\*</sup>  | 46175 | 547635 |
|  |  | 8337300 |
|  **Energy Minerals - 4.2%** |  |  |
|  Northern Oil & Gas, Inc. | 66400 | 2046448 |
|  Oasis Petroleum, Inc. | 15100 | 2065831 |
|  |  | 4112279 |
|  **Finance - 10.0%** |  |  |
|  Air Lease Corp. | 27625 | 1061352 |
|  American Financial Group, Inc. | 4800 | 658944 |
|  Artisan Partners Asset Management, Inc. | 31825 | 945203 |
|  Axis Capital Holdings, Ltd. | 22975 | 1244556 |
|  First Republic Bank | 5200 | 633828 |
|  H&E Equipment Services, Inc. | 34350 | 1559490 |
|  Hannon Armstrong Sust. Inf. Cap., Inc. | 25800 | 747684 |
|  Physicians Realty Trust | 61600 | 891352 |
|  Stifel Financial Corp. | 11800 | 688766 |
|  SVB Financial Group <sup>\*</sup>  | 2800 | 644392 |
|  Western Alliance Bancorp | 14300 | 851708 |
|  |  | 9927275 |
|  **Health Services - 4.2%** |  |  |
|  Addus HomeCare Corp. <sup>\*</sup>  | 12600 | 1253574 |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Encompass Health Corp. | 19675 | 1176762 |
|  Tenet Healthcare Corp. <sup>\*</sup>  | 34900 | 1702771 |
|  |  | 4133107 |
|  **Health Technology - 13.6%** |  |  |
|  Align Technology, Inc. <sup>\*</sup>  | 2150 | 453435 |
|  AtriCure, Inc. <sup>\*</sup>  | 28300 | 1255954 |
|  Bio-Techne Corp. | 14800 | 1226624 |
|  Exact Sciences Corp. <sup>\*</sup>  | 12425 | 615162 |
|  Halozyme Therapeutics, Inc. <sup>\*</sup>  | 33000 | 1877700 |
|  Inmode, Ltd. <sup>\*</sup>  | 32900 | 1174530 |
|  Insulet Corp. <sup>\*</sup>  | 3525 | 1037724 |
|  PerkinElmer, Inc. | 7000 | 981540 |
|  Sarepta Therapeutics, Inc. <sup>\*</sup>  | 13400 | 1736372 |
|  Seres Therapeutics, Inc. <sup>\*</sup>  | 159800 | 894880 |
|  STAAR Surgical Co. <sup>\*</sup>  | 17500 | 849450 |
|  STERIS, PLC | 6675 | 1232806 |
|  Twist Bioscience Corp. <sup>\*</sup>  | 4800 | 114288 |
|  |  | 13450465 |
|  **Industrial Services - 7.3%** |  |  |
|  EMCOR Group, Inc. | 11900 | 1762509 |
|  KBR, Inc. | 43500 | 2296800 |
|  MYR Group, Inc. <sup>\*</sup>  | 8675 | 798707 |
|  Waste Connections, Inc. | 17575 | 2329742 |
|  |  | 7187758 |
|  **Non-Energy Minerals - 3.2%** |  |  |
|  AZEK Co., Inc. <sup>\*</sup>  | 24200 | 491744 |
|  Eagle Materials, Inc. | 10300 | 1368355 |
|  MP Materials Corp. <sup>\*</sup>  | 19100 | 463748 |
|  Trex Co., Inc. <sup>\*</sup>  | 20825 | 881522 |
|  |  | 3205369 |
|  **Process Industries - 3.9%** |  |  |
|  Avient Corp. | 13200 | 445632 |
|  Cabot Corp. | 3700 | 247308 |
|  Olin Corp. | 48175 | 2550384 |
|  Vital Farms, Inc. <sup>\*</sup>  | 41675 | 621791 |
|  |  | 3865115 |
|  **Producer Manufacturing - 9.2%** |  |  |
|  AZZ, Inc. | 22575 | 907515 |
|  Belden, Inc. | 20275 | 1457772 |
|  Carlisle Cos, Inc. | 2200 | 518430 |
|  Crane Holdings Co. | 19075 | 1916084 |
|  Donaldson Co., Inc. | 13575 | 799160 |
|  Hubbell, Inc. | 5225 | 1226203 |
|  Lincoln Electric Holdings, Inc. | 7100 | 1025879 |
|  Regal Rexnord Corp. | 6755 | 810465 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **36** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Zurn Water Solutions Corp. | 19325 | 408724 |
|  |  | 9070232 |
|  **Retail Trade - 3.7%** |  |  |
|  Boot Barn Holdings, Inc. <sup>\*</sup>  | 19875 | 1242585 |
|  Casey's General Stores, Inc. | 4300 | 964705 |
|  Ulta Beauty, Inc. <sup>\*</sup>  | 3050 | 1430664 |
|  |  | 3637954 |
|  **Technology Services - 13.1%** |  |  |
|  Altair Engineering, Inc. <sup>\*</sup>  | 25933 | 1179174 |
|  ANSYS, Inc. <sup>\*</sup>  | 2950 | 712690 |
|  Aspen Technology, Inc. <sup>\*</sup>  | 5281 | 1084717 |
|  Euronet Worldwide, Inc. <sup>\*</sup>  | 9550 | 901329 |
|  Globant SA <sup>\*</sup>  | 11350 | 1908616 |
|  GoDaddy, Inc. <sup>\*</sup>  | 15025 | 1124171 |
|  HubSpot, Inc. <sup>\*</sup>  | 3600 | 1040868 |
|  nCino, Inc. <sup>\*</sup>  | 25400 | 671576 |
|  Paycom Software, Inc. <sup>\*</sup>  | 6225 | 1931680 |
|  PTC, Inc. <sup>\*</sup>  | 17600 | 2112704 |
|  Science Applications International Corp. | 2700 | 299511 |
|  |  | 12967036 |
|  **Transportation - 6.0%** |  |  |
|  Alaska Air Group, Inc. <sup>\*</sup>  | 11500 | 493810 |
|  Golar LNG, Ltd. <sup>\*</sup>  | 68100 | 1551999 |
|  Knight-Swift Transportation Holdings, Inc. | 18725 | 981377 |
|  Marten Transport, Ltd. | 48000 | 949440 |
|  TFI International, Inc. | 20025 | 2007306 |
|  |  | 5983932 |
|  **Utilities - 0.5%** |  |  |
|  Spire, Inc. | 7100 | 488906 |
|  **Total Common Stocks<br>(cost: $63,812,671)** |  | 97109903 |
|  **Short-Term Securities** - **1.9%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $1,833,516)** | 1833516 | 1833516 |
|  **Total Investments in Securities - 100.0%<br>(cost $65,646,187)** |  | 98943419 |
|  **Other Assets and Liabilities, net - (0.0)%** |  | (29232) |
|  **Net Assets - 100.0%** |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$98914187 |

---

<u> </u>

\* Non-income producing security.

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **37** |

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**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Small Cap Growth Fund (Continued)** 

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br> Quoted<br> Prices ($) | **Level 2**<br> Other significant<br>observable inputs ($) | **Level 3**<br> Significant<br> unobservable inputs ($) | Total ($) |
|  Common Stocks<sup>\*\*</sup>  | 97109903 |  |  | 97109903 |
|  Short-Term Securities | 1833516 |  |  | 1833516 |
|  Total: | 98943419 |  |  | 98943419 |

---

\*\* For equity securities categorized in a single level, refer to the Schedule of Investments for further breakdown.

There were no transfers into or out of level 3 during the reporting period.

*Information on this page is unaudited.* 

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| | |
|:---|:---|
| **38** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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[This page is intentionally left blank.]

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **39** |

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&nbsp;&nbsp;&nbsp; **Sit International Growth Fund**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit International Growth Fund is long-term growth. The Fund seeks to achieve its objective by investing at least 90% of its net assets in common stocks of growth companies domiciled outside the United States. In selecting investments for the Fund, the Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Adviser seeks industries and sectors that it believes have earnings growth prospects that are greater than the average. Within the selected Developing Markets Growth industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.

------

**Fund Performance** 

The Sit International Growth Fund posted a return of +3.76% for the 6-month period ended December 31, 2022, underperforming the MSCI EAFE Index<sup>®</sup> return of +6.36.

**Factors that Influenced the Fund's Performance** 

The Fund underperformed its benchmark during the 6-month period, due to worries about the Russia-Ukraine conflict, high inflation, increasing Covid cases in China, and global inflation. The main detractor to performance was stock selection in software & services, media & entertainment, and pharmaceuticals, biotechnology & life sciences. Specific holdings that hurt returns included Atlassian Corp., Tencent Holdings, Baidu Sponsored ADR Class A, and Dechra Pharmaceuticals plc. These were partially offset by positive contributions from stock selection and an overweight in semiconductors & semiconductor equipment, stock selection in materials, and an underweight in real estate. Holdings that helped performance included Broadcom and LG Chem Ltd.

Geographically, stock selection in Asia/Pacific ex Japan, Non-Euroland, and the United Kingdom hurt results, while region allocations in Africa/ Mideast, Japan and Euroland helped performance. Stocks owned that detracted from returns included Atlassian, Tencent, Dechra Pharmaceuticals plc, and Baidu. In Japan, owning Shiseido added to performance, and, in Euroland, positions in Safran S.A. and Schneider Electric SE enhanced returns.

**Outlook and Positioning** 

Aggressive monetary tightening worldwide should bring multidecade high inflation largely to heel by 2024. But it is also increasingly possible that the lagged effects of ongoing interest rate hikes will tip the already-battered global economy into recession. The euro area and the United Kingdom are in the throes of economic downturns, with signs of more pain ahead as financial conditions continue to tighten. Japan's economic growth should slow, as the Covid-reopening boost gives way to an inflation-burdened consumer and fading export demand in 2023. After almost three years, China has finally started to pivot away from its zero-Covid policy, causing some chaos. However, reassuringly, the Central Economic Work Conference signaled policy would turn more pro-business and pro-growth in 2023. In emerging markets (EM), we expect consumer inflation will stay elevated due to rising services prices but moderate slightly this year. We believe EM economies will improve in the second half of 2023, as the recovery in China gains steam and the U.S. Federal Reserve becomes less restrictive.

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z19.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI EAFE Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> MSCI EAFE Index (Europe, Australasia, Far East) is an unmanaged free float adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada. It is not possible to invest directly in an index. This is the Fund's primary index.

------

For strategy, we are overweight the United Kingdom and Asia ex-Japan, especially China, South Korea, Singapore, and India. The portfolio remains diversified across themes and industries. Our European holdings are a cross-section of traditional and cyclical growth opportunities levered to both the economic recovery and secular investment themes. We are constructive on Chinese stocks near-term, on reasonable valuations and expected economic recovery. A rebound in China will have positive knock-on effects throughout Asia. Our Chinese holdings are a diversified portfolio of reopening trades, such as the online travel industry, restaurants, and Macau gaming, internet names, and the stable industries of healthcare and utilities. Our South Korea, Singapore, and India portfolio consists of non-cyclical sectors, such as consumer staples, and cyclical stocks within the financial, technology, and energy sectors. Jap-anese holdings remain focused on a combination of higher growth companies operating overseas and defensive domestic consumption stocks.

**Roger J. Sit** 

*Portfolio Manager* 

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| | |
|:---|:---|
| **40** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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------

---

| | | |
|:---|:---|:---|
|  **COMPARATIVE RATES OF RETURNS** | **COMPARATIVE RATES OF RETURNS** | **COMPARATIVE RATES OF RETURNS** |
| as of December 31, 2022 | as of December 31, 2022 | as of December 31, 2022 |
|  | **Sit International<br>Growth Fund** | **MSCI EAFE<br>Index<sup>1</sup>** |
|  Six Month | 3.76% | 6.36% |
|  One Year | -22.03 | -14.45 |
|  Five Year | 1.80 | 1.54 |
|  Ten Year | 3.69 | 4.67 |
|  Since Inception<br> (11/1/91) | 3.81 | 4.97 |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains and all fee waivers. Without the fee waivers total return and yield figures would have been lower. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

<sup>1</sup> MSCI EAFE Index (Europe, Australasia Far East) is an unmanaged free float adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada.

**FUND DIVERSIFICATION-BY REGION** 

------

---

| | | |
|:---|:---|:---|
| | **Sit International<br>Growth Fund** | **MSCI EAFE<br>Index** |
|  Europe | 61.4% | 64.9% |
|  Asia/Pacific | 27.5 | 34.4 |
|  North America | 8.5 |  |
|  Latin America | 1.5 |  |
|  Africa/Middle East |  | 0.7 |
|  Cash & Other Net Assets | 1.1 |  |

---

------

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
|  **PORTFOLIO SUMMARY**<br>| |
|  Net Asset Value 12/31/22: | $18.09 Per Share |
|  Net Asset Value 6/30/22: | $17.78 Per Share |
|  Net Assets: | $23.1 Million |
|  Weighted Average Market Cap: | $78.1 Billion |

---

**TOP HOLDINGS**<br>

&nbsp;&nbsp;&nbsp;&nbsp;1. Schneider Electric SE

&nbsp;&nbsp;&nbsp;&nbsp;2. Broadcom, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;3. AstraZeneca, PLC, ADR

&nbsp;&nbsp;&nbsp;&nbsp;4. ASML Holding NV

&nbsp;&nbsp;&nbsp;&nbsp;5. BAE Systems, PLC

&nbsp;&nbsp;&nbsp;&nbsp;6. Iberdrola SA

&nbsp;&nbsp;&nbsp;&nbsp;7. Shell, PLC, ADR

&nbsp;&nbsp;&nbsp;&nbsp;8. Diageo, PLC, ADR

&nbsp;&nbsp;&nbsp;&nbsp;9. Allianz SE

&nbsp;&nbsp;&nbsp;&nbsp;10. Sony Group Corp., ADR

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z20.jpg)

Based on net assets as of December 31, 2022.

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **41** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit International Growth Fund** 

Investments are grouped by geographic region.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 97.8%** |  |  |
|  **Asia - 26.4%**  |  |  |
|  **Australia** - **6.1%**  |  |  |
|  Atlassian Corp. <sup>\*</sup>  | 1825 | 234841 |
|  BHP Group, Ltd., ADR | 4200 | 260610 |
|  Lynas Rare Earths, Ltd. <sup>\*</sup>  | 35775 | 191206 |
|  Macquarie Group, Ltd. | 2600 | 295554 |
|  Rio Tinto, PLC, ADR | 4400 | 313280 |
|  Westpac Banking Corp. | 4425 | 70348 |
|  Woodside Energy Group, Ltd., ADR | 1517 | 36726 |
|  |  | 1402565 |
|  **China/Hong Kong - 5.9%**  |  |  |
|  AIA Group, Ltd. | 32200 | 358078 |
|  Baidu, Inc., ADR <sup>\*</sup>  | 1575 | 180149 |
|  Budweiser Brewing Co. APAC, Ltd. | 21500 | 67623 |
|  CSPC Pharmaceutical Group, Ltd. | 262960 | 276252 |
|  ENN Energy Holdings, Ltd. | 18400 | 258363 |
|  Ping An Insurance Group Co. of China, Ltd. | 33500 | 221675 |
|  |  | 1362140 |
|  **Japan - 9.0%**  |  |  |
|  Astellas Pharma, Inc. | 17700 | 270611 |
|  Keyence Corp. | 1000 | 391801 |
|  Recruit Holdings Co., Ltd. | 11200 | 356465 |
|  Shiseido Co., Ltd. | 4100 | 202157 |
|  Sony Group Corp., ADR | 6300 | 480564 |
|  Terumo Corp. | 13100 | 373915 |
|  |  | 2075513 |
|  **Singapore - 2.5%**  |  |  |
|  DBS Group Holdings, Ltd. | 15600 | 395066 |
|  Singapore Technologies Engineering, Ltd. | 78400 | 196088 |
|  |  | 591154 |
|  **South Korea - 2.9%**  |  |  |
|  LG Chem, Ltd. | 975 | 467403 |
|  Samsung Electronics Co., Ltd., GDR | 185 | 204425 |
|  |  | 671828 |
|  **Europe - 61.4%**  |  |  |
|  **France - 9.0%**  |  |  |
|  AXA SA | 11750 | 327714 |
|  Dassault Systemes SE | 11700 | 419500 |
|  Elis SA | 8125 | 120198 |
|  Faurecia SE <sup>\*</sup>  | 7166 | 108389 |
|  Safran SA | 3200 | 400503 |
|  Schneider Electric SE | 5000 | 699646 |
|  |  | 2075950 |
|  **Germany - 6.9%**  |  |  |
|  Allianz SE | 2250 | 483870 |
|  Deutsche Post AG | 6550 | 246663 |
|  Infineon Technologies AG | 5700 | 173468 |
|  Muenchener Rueckversicherungs AG | 800 | 260333 |
|  Siemens AG | 3100 | 430197 |
|  |  | 1594531 |
|  **Ireland - 3.1%**  |  |  |
|  Accenture, PLC | 550 | 146762 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  CRH, PLC, ADR | 4800 | 190992 |
|  Linde, PLC | 500 | 163090 |
|  STERIS, PLC | 1175 | 217011 |
|  |  | 717855 |
|  **Netherlands - 3.9%**  |  |  |
|  Adyen NV <sup>\*</sup>  | 84 | 115850 |
|  ASML Holding NV | 1025 | 560060 |
|  Stellantis NV | 16375 | 232525 |
|  |  | 908435 |
|  **Spain - 3.1%**  |  |  |
|  Cellnex Telecom SA | 5200 | 172111 |
|  Iberdrola SA | 45900 | 537031 |
|  |  | 709142 |
|  **Sweden - 2.2%**  |  |  |
|  Evolution AB, ADR | 1000 | 97850 |
|  Hexagon AB | 26600 | 277857 |
|  Telefonaktiebolaget LM Ericsson, ADR | 20450 | 119428 |
|  |  | 495135 |
|  **Switzerland - 11.3%**  |  |  |
|  Logitech International SA | 6650 | 413963 |
|  Lonza Group AG | 590 | 289114 |
|  Nestle SA | 3600 | 417135 |
|  Novartis AG | 1950 | 176283 |
|  Partners Group Holding AG | 490 | 432847 |
|  Roche Holding AG | 1350 | 424134 |
|  TE Connectivity, Ltd. | 1100 | 126280 |
|  Zurich Insurance Group AG | 680 | 325273 |
|  |  | 2605029 |
|  **United Kingdom - 21.9%**  |  |  |
|  Ashtead Group, PLC | 5500 | 313843 |
|  AstraZeneca, PLC, ADR | 8300 | 562740 |
|  BAE Systems, PLC | 52600 | 544337 |
|  Coca-Cola Europacific Partners, PLC | 5400 | 298728 |
|  Compass Group, PLC | 10625 | 246305 |
|  Dechra Pharmaceuticals, PLC | 6300 | 199397 |
|  Diageo, PLC, ADR | 2775 | 494477 |
|  Entain, PLC | 13925 | 222470 |
|  Glencore, PLC, ADR | 3500 | 46620 |
|  London Stock Exchange Group, PLC | 5100 | 439981 |
|  Man Group, PLC | 38950 | 100628 |
|  Reckitt Benckiser Group, PLC | 3100 | 215645 |
|  RELX, PLC | 12275 | 339532 |
|  Rentokil Initial, PLC | 27450 | 168583 |
|  Shell, PLC, ADR | 9100 | 518245 |
|  Smith & Nephew, PLC | 25250 | 338686 |
|  |  | 5050217 |
|  **Latin America - 1.5%**  |  |  |
|  **Argentina - 1.5%**  |  |  |
|  Globant SA <sup>\*</sup>  | 2050 | 344728 |
|  **North America - 8.5%**  |  |  |
|  **Canada - 3.9%**  |  |  |
|  Alimentation Couche-Tard, Inc. | 7400 | 325184 |
|  Colliers International Group, Inc. | 1600 | 147264 |
|  Lululemon Athletica, Inc. <sup>\*</sup>  | 200 | 64076 |

---

*See accompanying notes to financial statements.* 

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| | |
|:---|:---|
| **42** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Waste Connections, Inc. | 2750 | 364540 |
|  |  | 901064 |
|  **United States** - **4.6%**  |  |  |
|  Broadcom, Inc. | 1025 | 573108 |
|  Euronet Worldwide, Inc. <sup>\*</sup>  | 1775 | 167525 |
|  Mondelez International, Inc. | 4800 | 319920 |
|  |  | 1060553 |
|  **Total Common Stocks<br>(cost: $17,550,434)** |  | 22565839 |
|  **Investment Companies 1.1%** |  |  |
|  iShares MSCI India ETF<br>(cost $166,867) | 5600 | 233744 |
|  **Short-Term Securities** - **0.7%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $171,574)** | 171574 | 171574 |
|  **Total Investments in Securities - 99.6%<br>(cost $17,888,875)** |  | 22971157 |
|  **Other Assets and Liabilities, net - 0.4%** |  | 99247 |
|  **Net Assets - 100.0%** |  | $23070404 |

---

------

\* Non-income producing security.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments*.*

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **43** |

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**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit International Growth Fund (Continued)** 

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** | **Investment in Securities** |
|  | **Level 1**<br>Quoted<br>Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Argentina | 344728 |  |  | 344728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Australia | 1402565 |  |  | 1402565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Canada | 901064 |  |  | 901064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; China/Hong Kong | 1362140 |  |  | 1362140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; France | 2075950 |  |  | 2075950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Germany | 1594531 |  |  | 1594531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ireland | 717855 |  |  | 717855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japan | 2075513 |  |  | 2075513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netherlands | 908435 |  |  | 908435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore | 591154 |  |  | 591154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South Korea | 671828 |  |  | 671828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spain | 709142 |  |  | 709142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sweden | 495135 |  |  | 495135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Switzerland | 2605029 |  |  | 2605029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Kingdom | 5050217 |  |  | 5050217 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 1060553 |  |  | 1060553 |
|  Investment Companies | 233744 |  |  | 233744 |
|  Short-Term Securities | 171574 |  |  | 171574 |
|  Total: | 22971157 |  |  | 22971157 |

---

Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

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|:---|:---|
| **44** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **45** |

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&nbsp;&nbsp;&nbsp; **Sit Developing Markets Growth Fund**<br>

**OBJECTIVE & STRATEGY** 

The objective of the Sit Developing Markets Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its net assets in common stocks of companies domiciled or operating in a developing market. In selecting investments for the Fund, the Adviser begins by selecting countries or regions in which to invest by considering several factors affecting the economy and equity market of foreign countries and regions. After the country and regional allocations are determined, the Adviser seeks industries and sectors that appear to have strong earnings growth prospects. Within the selected industries and sectors, the Adviser invests in foreign growth-oriented companies it believes exhibit the potential for superior growth.

------

**Fund Performance** 

The Sit Developing Markets Growth Fund returned -0.47% during the 6-month period ended December 31, 2022, compared to the MSCI Emerging Markets Index<sup>®</sup> return of -4.43%.

**Factors that Influenced the Fund's Performance** 

The Fund outperformed its benchmark during the 6-month period, on signs of slowing inflation, falling energy prices, and optimism surrounding China's reopening. But emerging markets face risks from the Russia-Ukraine conflict, high inflation, increasing Covid cases in China, and global recession. Contributing to outperformance during the period were the Fund's holdings in banks, materials, and semiconductors & semiconductor equipment. Specific stocks that helped returns were HDFC Bank Ltd. Sponsored ADR, DBS Group Holdings Ltd., LG Chem Ltd., and Broadcom. Conversely, stock selection in capital goods, diversified financials, utilities, and retailing detracted from performance, namely L.K. Technology Holdings Ltd., Singapore Technologies Engineering, Hong Kong Exchanges & Clearing, ENN Energy Holdings Ltd., Alibaba Group Holding Ltd., and JD.com Sponsored ADR.

Geographically, stock selection in Asia/Pacific ex Japan and Africa/ Mideast helped performance. Specific stocks that added value HDFC Bank Ltd., DBS Group Holdings Ltd., Broadcom, Naspers Ltd, and Bid Corp. Ltd. Conversely, the Fund's 0% weight in Non-Euroland hurt performance.

**Outlook and Positioning** 

Aggressive monetary tightening worldwide should bring multi-decade-high inflation largely to heel by 2024. But it is also increasingly possible that the lagged effects of ongoing interest rate hikes will tip the already-battered global economy into a recession. In China, we expect their economy will get worse before it gets better. After almost three years, China has finally started to pivot away from its zero-Covid policy, causing some chaos. However, reassuringly, the Central Economic Work Conference signaled policy would turn more pro-business and pro-growth in 2023. In emerging markets (EM), we expect consumer inflation will stay elevated due to rising services prices but moderate slightly in 2023. But domestic demand should remain supportive for economic growth. Moreover, a weaker U.S. dollar and lower oil prices will reduce the cost of imports and dollar-denominated debt servicing.

**HYPOTHETICAL GROWTH OF $10,000** 

------

![LOGO](g445807g00z21.jpg)

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI Emerging Markets Index. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

<sup>1</sup> MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity market performance of emerging markets. It is not possible to invest directly in an index. This is the Fund's primary index.

------

We believe EM economies will improve in the second half of 2023, as the recovery in China gains steam and the U.S. Federal Reserve becomes less restrictive. For strategy, given the uncertainties around global economic growth, portfolios remain diversified across themes and industries. We are constructive on Chinese stocks near-term, on reasonable valuations and the expected economic recovery. A rebound in China will have positive knock-on effects throughout Asia. Our Chinese holdings are a diversified portfolio of reopening trades, such as the online travel industry, restaurants, and Macau gaming, in addition to internet names and the stable industries of healthcare and utilities. We also prefer investments in South Korea, Singapore, and India, as economic growth has been resilient and will improve further in 2023. Our portfolio consists of non-cyclical sectors, such as consumer staples, and cyclical stocks within the financial, technology, and energy sectors.

---

| | |
|:---|:---|
|  **Roger J. Sit** | **Raymond E. Sit** |
|  *Portfolio Managers* | *Portfolio Managers* |

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| | |
|:---|:---|
| **46** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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**COMPARATIVE RATES OF RETURNS** 

------

as of December 31, 2022

---

| | | |
|:---|:---|:---|
| | **Sit Developing<br>Markets Growth<br>Fund** | **MSCI**<br> **Emerging<br>Markets<br>Index<sup>1</sup>**  |
|  Six Month | -0.47% | -4.43% |
|  One Year | -17.18 | -22.37 |
|  Five Year | -1.04 | -3.76 |
|  Ten Year | 0.94 | -0.98 |
|  Since Inception<br> (7/1/94) | 3.51 | 2.45 |

---

------

Performance figures are historical and do not guarantee future results. Investment returns and principal value will vary, and you may have a gain or loss when you sell shares. Current performance may be lower or higher than the performance data quoted. Contact the Fund for performance data current to the most recent month-end. Returns include changes in share price as well as reinvestment of all dividends and capital gains. Returns do not reflect the deduction of the 2% redemption fee imposed if shares are redeemed or exchanged within 30 calendar days from their date of purchase. If imposed, the fee would reduce the performance quoted. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Management fees and administrative expenses are included in the Fund's performance. Returns for periods greater than one year are compounded average annual rates of return.

1 MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index that measures equity market performance of emerging markets. It is not possible to invest directly in an index.

**FUND DIVERSIFICATION BY- REGION** 

------

---

| | | |
|:---|:---|:---|
| | **Sit Developing<br>Markets Growth<br>Fund** | **MSCI<br>Emerging<br>Markets<br>Index** |
|  Asia/Pacific | 75.3% | 78.3% |
|  Africa/Middle East | 8.2 | 11.2 |
|  Latin America | 7.3 | 8.5 |
|  North America | 6.1 |  |
|  Europe | 1.3 | 2.0 |
|  Cash & Other Net Assets | 1.8 |  |

---

------

Based on net assets as of December 31, 2022.

**PORTFOLIO SUMMARY** 

------

---

| | |
|:---|:---|
|  Net Asset Value 12/31/22: | $15.02 Per Share |
|  Net Asset Value 6/30/22: | $15.46 Per Share |
|  Net Assets: | $9.3 Million |
|  Weighted Average Market Cap: | $98.8 Billion |

---

**TOP 10 HOLDINGS** 

------

&nbsp;&nbsp;&nbsp;&nbsp;1. Taiwan Semiconductor Co.

&nbsp;&nbsp;&nbsp;&nbsp;2. Samsung Electronics Co., Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;3. iShares MSCI India ETF

&nbsp;&nbsp;&nbsp;&nbsp;4. DBS Group Holdings, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;5. HDFC Bank, Ltd., ADR

&nbsp;&nbsp;&nbsp;&nbsp;6. Tencent Holdings, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;7. Broadcom, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;8. ENN Energy Holdings, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;9. LG Chem, Ltd.

10. Bid Corp., Ltd.

------

Based on net assets as of December 31, 2022.

**SECTOR ALLOCATION** 

------

![LOGO](g445807g00z22.jpg)

Based on net assets as of December 31, 2022.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **47** |

---

------

**SCHEDULE OF INVESTMENTS (Unaudited)** 

December 31, 2022

**Sit Developing Markets Growth Fund** 

Investments are grouped by geographic region.

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  **Common Stocks - 93.6%** |  |  |
|  **Africa/Middle East - 8.2%**  |  |  |
|  **Israel - 2.2%**  |  |  |
|  NICE, Ltd., ADR <sup>\*</sup>  | 1050 | 201915 |
|  **South Africa - 6.0%**  |  |  |
|  Bid Corp., Ltd. | 13200 | 256251 |
|  Bidvest Group, Ltd. | 5525 | 69713 |
|  Naspers, Ltd. | 1425 | 236868 |
|  |  | 562832 |
|  **Asia - 70.7%**  |  |  |
|  **Australia - 2.5%**  |  |  |
|  Atlassian Corp. <sup>\*</sup>  | 450 | 57906 |
|  Rio Tinto, PLC, ADR | 2475 | 176220 |
|  |  | 234126 |
|  **China/Hong Kong - 34.0%**  |  |  |
|  AIA Group, Ltd. | 21400 | 237977 |
|  Alibaba Group Holding, Ltd., ADR <sup>\*</sup>  | 2700 | 237843 |
|  Baidu, Inc., ADR <sup>\*</sup>  | 1100 | 125818 |
|  Budweiser Brewing Co. APAC, Ltd. | 46000 | 144681 |
|  China International Capital Corp., Ltd. | 58400 | 111481 |
|  China Mengniu Dairy Co., Ltd. | 43000 | 195018 |
|  China Petroleum & Chemical Corp., ADR | 1400 | 67624 |
|  CSPC Pharmaceutical Group, Ltd. | 192400 | 202125 |
|  ENN Energy Holdings, Ltd. | 19800 | 278021 |
|  GDS Holdings, Ltd., ADR <sup>\*</sup>  | 1000 | 20620 |
|  Hong Kong Exchanges & Clearing, Ltd. | 5100 | 220323 |
|  JD.com, Inc. | 542 | 15290 |
|  JD.com, Inc., ADR | 3600 | 202068 |
|  Jiumaojiu International Holdings, Ltd. | 9000 | 24041 |
|  LK Technology Holdings, Ltd. | 72500 | 59631 |
|  Meituan<sup>\*</sup>  | 6000 | 134291 |
|  Ping An Insurance Group Co. of China, Ltd. | 19900 | 131682 |
|  Sands China, Ltd. <sup>\*</sup>  | 42400 | 140691 |
|  Sinopharm Group Co., Ltd. | 44900 | 114128 |
|  Tencent Holdings, Ltd. | 8200 | 350883 |
|  Trip.com Group, Ltd., ADR <sup>\*</sup>  | 4450 | 153080 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3167316 |
|  **India - 3.9%**  |  |  |
|  HDFC Bank, Ltd., ADR | 5350 | 365993 |
|  **Indonesia - 2.1%**  |  |  |
|  Astra International Tbk PT | 176000 | 64442 |
|  XL Axiata Tbk PT <sup>\*</sup>  | 1162583 | 130428 |
|  |  | 194870 |
|  **Singapore - 6.3%**  |  |  |
|  DBS Group Holdings, Ltd. | 14500 | 367209 |
|  Flex, Ltd. <sup>\*</sup>  | 4000 | 85840 |
|  Sea, Ltd, ADR <sup>\*</sup>  | 600 | 31218 |
|  Singapore Technologies Engineering, Ltd. | 44000 | 110049 |
|  |  | 594316 |
|  **South Korea - 11.0%**  |  |  |
|  LG Chem, Ltd. | 575 | 275648 |
|  NAVER Corp. | 450 | 64075 |
|  Samsung Electronics Co., Ltd. | 10925 | 481591 |

---

---

| | | |
|:---|:---|:---|
| **Name of Issuer** | **Quantity** | **Fair Value ($)** |
|  Shinhan Financial Group Co., Ltd. | 7200 | 201381 |
|  |  | 1022695 |
|  **Taiwan - 9.2%**  |  |  |
|  Cathay Financial Holding Co., Ltd. | 88785 | 115547 |
|  Hon Hai Precision Industry Co., Ltd., GDR | 23700 | 153102 |
|  Taiwan Semiconductor Co. | 37482 | 546947 |
|  Taiwan Semiconductor Co., ADR | 525 | 39107 |
|  |  | 854703 |
|  **Thailand - 1.7%**  |  |  |
|  Bangkok Bank PCL | 36500 | 158077 |
|  **Europe - 1.3%**  |  |  |
|  **Netherlands - 1.3%**  |  |  |
|  Prosus NV | 1700 | 117284 |
|  **Latin America - 7.3%**  |  |  |
|  **Argentina - 2.1%**  |  |  |
|  Globant SA <sup>\*</sup>  | 1175 | 197588 |
|  **Brazil - 1.9%**  |  |  |
|  Ambev SA, ADR | 21575 | 58684 |
|  Banco Bradesco SA | 30350 | 87088 |
|  Lojas Renner SA | 8130 | 31536 |
|  |  | 177308 |
|  **Chile - 0.8%**  |  |  |
|  Banco Santander Chile, ADR | 4700 | 74448 |
|  **Peru - 2.5%**  |  |  |
|  Southern Copper Corp. | 3900 | 235521 |
|  **North America - 6.1%**  |  |  |
|  **Mexico - 2.0%**  |  |  |
|  Fomento Economico Mexicano, ADR | 1575 | 123039 |
|  Grupo Bimbo SAB de CV | 16000 | 67575 |
|  |  | 190614 |
|  **United States - 4.1%**  |  |  |
|  Broadcom, Inc. | 550 | 307521 |
|  Skyworks Solutions, Inc. | 775 | 70626 |
|  |  | 378147 |
|  **Total Common Stocks<br>(cost: $7,128,404)** |  | 8727753 |
|  **Investment Companies 4.6%** |  |  |
|  iShares MSCI India ETF<br>**(cost $312,487)** | 10400 | 434096 |
|  **Short-Term Securities - 1.6%**  |  |  |
|  Fidelity Inst. Money Mkt. Gvt. Fund, 4.06%<br>**(cost $149,376)** | 149376 | 149376 |
|  **Total Investments in Securities - 99.8%<br>(cost $7,590,267)** |  | 9311225 |
|  **Other Assets and Liabilities, net - 0.2%** |  | 14388 |
|  **Net Assets - 100.0%** |  | $9325613 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **48** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

\* Non-income producing security.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

PLC — Public Limited Company

Numeric footnotes not disclosed are not applicable to this Schedule of Investments.

A summary of the levels for the Fund's investments as of December 31, 2022 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Investment in Securities** | **Investment in Securities** | |
|  | **Level 1**<br>Quoted<br> Prices ($) | **Level 2**<br>Other significant<br>observable inputs ($) | **Level 3**<br>Significant<br>unobservable inputs ($) |<br>Total ($) |
|  Common Stocks |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Argentina | 197588 |  |  | 197588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Australia | 234126 |  |  | 234126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brazil | 177308 |  |  | 177308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chile | 74448 |  |  | 74448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; China/Hong Kong | 3167316 |  |  | 3167316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; India | 365993 |  |  | 365993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indonesia | 194870 |  |  | 194870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Israel | 201915 |  |  | 201915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mexico | 190614 |  |  | 190614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Netherlands | 117284 |  |  | 117284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Peru | 235521 |  |  | 235521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Singapore | 594316 |  |  | 594316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South Africa | 562832 |  |  | 562832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; South Korea | 1022695 |  |  | 1022695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taiwan | 854703 |  |  | 854703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thailand | 158077 |  |  | 158077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United States | 378147 |  |  | 378147 |
|  Investment Companies | 434096 |  |  | 434096 |
|  Short-Term Securities | 149376 |  |  | 149376 |
|  Total: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9311225 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9311225 |

---

Level 1 securities of foreign issuers are primarily American Depositary Receipts (ADRs), Public Limited Companies (PLCs) or Global Depositary Receipts (GDRs). There were no transfers into or out of level 3 during the reporting period.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **49** |

---

------

**STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)** 

December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit**<br> **Balanced <br>Fund** | **Sit**<br> **Dividend <br>Growth**<br>**Fund** | **Sit**<br>**Global<br> Dividend <br>Growth**<br>**Fund** |
|  **ASSETS** |  |  |  |
|  Investments in securities, at identified cost | $35797637 | $183493620 | $26971695 |
|  Investments in securities, at fair value - see accompanying schedule for detail | $43451877 | $218983402 | $41928839 |
|  Cash in bank on demand deposit |  |  | 7 |
|  Accrued interest and dividends receivable | 153565 | 268019 | 94281 |
|  Receivable for investment securities sold | 353277 | 816058 |  |
|  Receivable for Fund shares sold | 20827 | 120639 | 1454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | 43979546 | 220188118 | 42024581 |
|  **LIABILITIES** |  |  |  |
|  Disbursements in excess of cash balances | 17212 |  |  |
|  Payable for investment securities purchased |  | 562699 |  |
|  Payable for Fund shares redeemed | 23356 | 1235129 | 72 |
|  Cash portion of dividends payable to shareholders | 149 |  |  |
|  Accrued investment management fees and advisory fees | 29740 | 128589 | 34577 |
|  Accrued Rule 12b-1 fees (Class S) |  | 4594 | 703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 70457 | 1931011 | 35352 |
|  Net assets applicable to outstanding capital stock | $43909089 | $218257107 | $41989229 |
|  **Net assets consist of:** |  |  |  |
|  Capital (par value and paid-in surplus) | $36091289 | $181376447 | $27429774 |
|  Total distributable earnings (loss), including unrealized appreciation (depreciation) | 7817800 | 36880660 | 14559455 |
|  | $43909089 | $218257107 | $41989229 |
|  Outstanding shares: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I)<sup>\*</sup>  | 1721291 | 14445115 | 1926215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S)<sup>\*</sup>  |  | 1629204 | 167850 |
|  Net assets applicable to outstanding shares: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I)<sup>\*</sup>  | $43909089 | $196267106 | $38626012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S)<sup>\*</sup>  |  | 21990001 | 3363217 |
|  Net asset value per share of outstanding capital stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I)<sup>\*</sup>  | $25.51 | $13.59 | $20.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S)<sup>\*</sup>  |  | 13.50 | 20.04 |

---

\* Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap Dividend Growth Funds offer multiple share classes (I and S). All other Funds offer a single share class.

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **50** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sit**<br>**Large Cap**<br>**Growth**<br>**Fund** | **Sit**<br>**ESG**<br>**Growth<br>Fund** | **Sit**<br>**Mid Cap<br>Growth**<br>**Fund** | **Sit**<br>**Small Cap<br>Dividend<br>Growth**<br>**Fund** | **Sit**<br>**Small Cap<br>Growth**<br>**Fund** | **Sit<br>International<br>Growth**<br>**Fund** | **Sit<br>Developing<br>Markets<br>Growth<br>Fund** |
| $60861922 | $5446271 | $97434928 | $15652012 | $65646187 | $17888875 | $7590267 |
| $132186539 | $7564369 | $170214089 | $19294633 | $98943419 | $22971157 | $9311225 |
|  | 1 |  |  |  | 843 | 1 |
| 83748 | 15378 | 61185 | 32081 | 101473 | 115162 | 20550 |
|  |  |  | 316171 | 27 |  |  |
| 5221 |  | 13425 | 2444 | 3830 | 1897 | 2121 |
| 132275508 | 7579748 | 170288699 | 19645329 | 99048749 | 23089059 | 9333897 |
|  |  |  | 116341 |  |  |  |
| 33886 |  | 40816 |  | 9729 | 2293 | 978 |
| 1621 |  |  |  | 627 |  |  |
| 112154 | 6324 | 177752 | 14645 | 124206 | 16362 | 7306 |
|  | 788 |  | 979 |  |  |  |
| 147661 | 7112 | 218568 | 131965 | 134562 | 18655 | 8284 |
| $132127847 | $7572636 | $170070131 | $19513364 | $98914187 | $23070404 | $9325613 |
| $60404634 | $5500110 | $101536871 | $15928442 | $66011650 | $18031471 | $7585149 |
| 71723213 | 2072526 | 68533260 | 3584922 | 32902537 | 5038933 | 1740464 |
| $132127847 | $7572636 | $170070131 | $19513364 | $98914187 | $23070404 | $9325613 |
| 2868217 | 257135 | 9575171 | 1129613 | 1856150 | 1275556 | 620942 |
|  | 257040 |  | 359057 |  |  |  |
| $132127847 | $3803289 | $170070131 | $14808055 | $98914187 | $23070404 | $9325613 |
|  | 3769347 |  | 4705309 |  |  |  |
| $46.07 | $14.79 | $17.76 | $13.11 | $53.29 | $18.09 | $15.02 |
|  | 14.66 |  | 13.10 |  |  |  |

---

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **51** |

---

------

**STATEMENTS OF OPERATIONS (Unaudited)** 

Six Months Ended December 31, 2022

---

| | | | |
|:---|:---|:---|:---|
|  | **Sit<br> Balanced <br>Fund** | **Sit<br> Dividend <br>Growth**<br>**Fund** | **Global<br> Dividend <br>Growth**<br>**Fund** |
|  **Investment income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends<sup>\*</sup>  | $218860 | $2392697 | $364460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest | 295339 | 17398 | 5934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total income | 514199 | 2410095 | 370394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Expenses (note 4):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment management and advisory service fee | 239146 | 1106263 | 258340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12b-1 fees (Class S) |  | 27976 | 4268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12b-1 fees (Class S) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total expenses | 239146 | 1134239 | 262608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less fees and expenses waived by investment adviser | (47829) | (331879) | (51668) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total net expenses | 191317 | 802360 | 210940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | 322882 | 1607735 | 159454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Realized and unrealized gain (loss):** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) on investments | 219487 | 6323187 | (278880) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) on foreign currency transactions |  |  | 724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (855279) | 5190453 | 1066648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain (loss) | (635792) | 11513640 | 788492 |
|  Net increase (decrease) in net assets resulting from operations | ($312910) | $13121375 | $947946 |
|  <u> </u> |  |  |  |
|  *\** Foreign taxes withheld on dividends received |  | $2239 | $5667 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **52** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Sit**<br>**Large Cap<br> Growth** <br>**Fund** | **Sit**<br>**ESG<br> Growth <br>Fund** | **Sit**<br>**Mid Cap<br> Growth** <br>**Fund** | **Small Cap<br>Dividend<br> Growth** <br>**Fund** | **Sit**<br>**Small Cap<br> Growth** <br>**Fund** | **Sit<br>International<br> Growth <br>Fund** | **Developing<br>Markets<br> Growth <br>Fund** |
| $759469 | $53632 | $1104355 | $251441 | $730250 | $171123 | $89951 |
| 15158 | 3201 | 27805 | 7572 | 27246 | 2202 | 1900 |
| 774627 | 56833 | 1132160 | 259013 | 757496 | 173325 | 91851 |
| 704607 | 47111 | 1084535 | 123337 | 771827 | 169774 | 90141 |
|  | 4671 |  | 5860 |  |  |  |
|  |  |  | 1 |  |  |  |
| 704607 | 51782 | 1084535 | 129198 | 771827 | 169774 | 90141 |
|  | (9422) |  | (34535) |  | (73569) | (47324) |
| 704607 | 42360 | 1084535 | 94663 | 771827 | 96205 | 42817 |
| 70020 | 14473 | 47625 | 164350 | (14331) | 77120 | 49034 |
| 840300 | (45152) | (2521389) | 178299 | 653569 | 194785 | 26602 |
|  | 57 |  | (4) | (29) | 360 | (307) |
| (2172864) | 221148 | 15379525 | 798591 | 2768976 | 558923 | (110030) |
| (1332564) | 176053 | 12858136 | 976886 | 3422516 | 754068 | (83735) |
| ($1262544) | $190526 | $12905761 | $1141236 | $3408185 | $831188 | ($34701) |
|  | $1462 | $3565 | $641 | $3570 | $8874 | $11648 |

---

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **53** |

---

------

**STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Sit Balanced Fund** | **Sit Balanced Fund** | **Sit Dividend Growth Fund** | **Sit Dividend Growth Fund** |
|  | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** |
|  **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $322882 | $474954 | $1607735 | $3335617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) on investments and foreign currency transactions | 219487 | 2359977 | 6323187 | 25349263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions | (855279) | (12491710) | 5190453 | (44984342) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | (312910) | (9656779) | 13121375 | (16299462) |
|  **Distributions from:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income and net realized gains |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (Class I) | (2057213) | (2956313) | (21073141) | (25681861) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (Class S) |  |  | (2312965) | (3168345) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (2057213) | (2956313) | (23386106) | (28850206) |
|  **Capital share transactions:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from shares sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 1731519 | 13412686 | 7976649 | 28157324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 566369 | 1509331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvested distributions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 2015507 | 2928301 | 19839935 | 24442835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 2307233 | 3159382 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for shares redeemed |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | (5594242) | (21844017) | (13337389) | (28473035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | (1756476) | (9393310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in net assets from capital transactions | (1847216) | (5503030) | 15596321 | 19402527 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total increase (decrease) in net assets | (4217339) | (18116122) | 5331590 | (25747141) |
|  **Net assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 48126428 | 66242550 | 212925517 | 238672658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $43909089 | $48126428 | $218257107 | $212925517 |
|  **Capital transactions in shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 62582 | 398336 | 552759 | 1663335 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 37753 | 89054 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvested distributions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 77456 | 88175 | 1445978 | 1442952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 169280 | 187577 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | (210277) | (711508) | (919944) | (1676083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | (121645) | (545058) |
|  Net increase (decrease) | (70239) | (224997) | 1164181 | 1161777 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **54** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Sit Global Dividend Growth Fund** | **Sit Global Dividend Growth Fund** | **Sit Large Cap Growth Fund** | **Sit Large Cap Growth Fund** | **Sit ESG Growth Fund** | **Sit ESG Growth Fund** |
| **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** |
| $159454 | $410390 | $70020 | ($266176) | $14473 | $38713 |
| (278156) | 802964 | 840300 | 9487470 | (45095) | 282988 |
| 1066648 | (6395328) | (2172864) | (40967507) | 221148 | (1847947) |
| 947946 | (5181974) | (1262544) | (31746213) | 190526 | (1526246) |
| (343331) | (334135) | (4954540) | (10822278) | (120779) | (71656) |
| (24673) | (22870) |  |  | (116450) | (59748) |
| (368004) | (357005) | (4954540) | (10822278) | (237229) | (131404) |
| 1266048 | 1661272 | 1451807 | 4420115 | 16017 | 157956 |
| 13808 | 199533 |  |  | 123780 | 72207 |
| 321262 | 314053 | 4756966 | 10641515 | 120779 | 71656 |
| 24673 | 22870 |  |  | 116450 | 59748 |
| (551463) | (1306482) | (4299024) | (13154398) | (55304) | (473310) |
| (112794) | (458731) |  |  | (20173) | (32242) |
| 961534 | 432515 | 1909749 | 1907232 | 301549 | (143985) |
| 1541476 | (5106464) | (4307335) | (40661259) | 254846 | (1801635) |
| 40447753 | 45554217 | 136435182 | 177096441 | 7317790 | 9119425 |
| $41989229 | $40447753 | $132127847 | $136435182 | $7572636 | $7317790 |
| 63361 | 72461 | 28535 | 71691 | 1074 | 8598 |
| 690 | 8666 |  |  | 7860 | 4130 |
| 16693 | 13860 | 100911 | 163590 | 8057 | 3783 |
| 1284 | 1014 |  |  | 7837 | 3176 |
| (28030) | (57269) | (86670) | (219041) | (3587) | (27259) |
| (5875) | (20277) |  |  | (1297) | (1728) |
| 48123 | 18455 | 42776 | 16240 | 19944 | (9300) |

---

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **55** |

---

------

**STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Sit Mid Cap Growth Fund** | **Sit Mid Cap Growth Fund** | **Sit Small Cap<br>Dividend Growth Fund** | **Sit Small Cap<br>Dividend Growth Fund** |
|  | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** |
|  **Operations:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | $47625 | ($1117433) | $164350 | $188059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) on investments and foreign currency transactions | (2521389) | 11614655 | 178295 | 862066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions | 15379525 | (64721093) | 798591 | (4651240) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in net assets resulting from operations | 12905761 | (54223871) | 1141236 | (3601115) |
|  **Distributions from:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income and net realized gains |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (Class I) | (5106759) | (26173363) | (581490) | (1438331) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common shares (Class S) |  |  | (173968) | (429103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total distributions | (5106759) | (26173363) | (755458) | (1867434) |
|  **Capital share transactions:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from shares sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 1013837 | 1319860 | 181107 | 844902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 157353 | 219344 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvested distributions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 4614408 | 25308092 | 539939 | 1350645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 168868 | 414564 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments for shares redeemed |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | (7786864) | (9971539) | (426546) | (924477) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | (25851) | (204817) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in net assets from capital transactions | (2158619) | 16656413 | 594870 | 1700161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total increase (decrease) in net assets | 5640383 | (63740821) | 980648 | (3768388) |
|  **Net assets:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | 164429748 | 228170569 | 18532716 | 22301104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $170070131 | $164429748 | $19513364 | $18532716 |
|  **Capital transactions in shares:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 53956 | 60388 | 13478 | 52492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 11182 | 13840 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvested distributions |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | 256927 | 1096063 | 41513 | 85026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | 12979 | 26101 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redeemed |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class I) | (429261) | (441904) | (31011) | (54966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares (Class S) |  |  | (1848) | (13515) |
|  Net increase (decrease) | (118378) | 714547 | 46293 | 108978 |

---

*See accompanying notes to financial statements.* 

---

| | |
|:---|:---|
| **56** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Sit Small Cap Growth Fund** | **Sit Small Cap Growth Fund** | **Sit International Growth Fund** | **Sit International Growth Fund** | **Sit Developing Markets Growth Fund** | **Sit Developing Markets Growth Fund** |
| **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** | **Six Months Ended**<br>**December 31, 2022**<br>**(Unaudited)** | **Year**<br>**Ended**<br>**June 30, 2022** |
| ($14331) | ($875254) | $77120 | $259074 | $49034 | $134915 |
| 653540 | 7511737 | 195145 | 692622 | 26295 | 80939 |
| 2768976 | (41245382) | 558923 | (8092173) | (110030) | (3750421) |
| 3408185 | (34608899) | 831188 | (7140477) | (34701) | (3534567) |
| (1688714) | (19675197) | (453403) | (72739) | (222145) | (252776) |
| (1688714) | (19675197) | (453403) | (72739) | (222145) | (252776) |
| 442130 | 1398827 | 183487 | 767114 | 325336 | 682993 |
| 1564134 | 19201055 | 420135 | 71582 | 216826 | 247111 |
| (3255541) | (13730915) | (364932) | (2516151) | (359324) | (1625794) |
| (1249277) | 6868967 | 238690 | (1677455) | 182838 | (695690) |
| 470194 | (47415129) | 616475 | (8890671) | (74008) | (4483033) |
| 98443993 | 145859122 | 22453929 | 31344600 | 9399621 | 13882654 |
| $98914187 | $98443993 | $23070404 | $22453929 | $9325613 | $9399621 |
| 7829 | 19358 | 9927 | 33021 | 22716 | 36524 |
| 29138 | 276393 | 22996 | 3120 | 14484 | 13548 |
| (59114) | (193154) | (20182) | (120475) | (24228) | (90929) |
| (22147) | 102597 | 12741 | (84334) | 12972 | (40857) |

---

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **57** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Balanced Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $26.86 | $32.85 | $26.37 | $25.06 | $23.76 | $22.71 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.18 | 0.23 | 0.22 | 0.25 | 0.32 | 0.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.31) | (4.86) | 6.71 | 2.64 | 1.52 | 1.96 |
|  Total from operations | (0.13) | (4.63) | 6.93 | 2.89 | 1.84 | 2.21 |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.26) | (0.22) | (0.20) | (0.27) | (0.31) | (0.27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.96) | (1.14) | (0.25) | (1.31) | (0.23) | (0.89) |
|  Total distributions | (1.22) | (1.36) | (0.45) | (1.58) | (0.54) | (1.16) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $25.51 | $26.86 | $32.85 | $26.37 | $25.06 | $23.76 |
|  Total investment return <sup>2</sup>  | (0.55%) | (14.87%) | 26.48% | 11.91% | 7.98% | 9.84% |
|  Net assets at end of period (000's omitted) | $43909 | $48126 | $66243 | $46658 | $34465 | $37541 |
|  **Ratios: <sup>3</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) | 1.00%<sup>4</sup> | 1.00%<sup>4</sup> | 1.00% | 1.00% | 1.00% | 1.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) | 0.80%<sup>4</sup> | 0.91%<sup>4</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 1.15% | 0.62% | 0.74% | 0.99% | 1.33% | 1.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.35% | 0.71% |  |  |  |  |
|  Portfolio turnover rate (excluding short-term securities) | 16.78%<sup>5</sup> | 39.92% | 38.30% | 58.63% | 50.45% | 50.49% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>3</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>4</sup> Total Fund expenses are limited to 1.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>5</sup> Not annualized.

---

| | |
|:---|:---|
| **58** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class I** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class I** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $14.29 | $17.37 | $13.48 | $14.45 | $16.69 | $16.88 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.11 | 0.24 | 0.21 | 0.22 | 0.38 | 0.26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.78 | (1.19) | 4.75 | 0.64 | 0.55 | 1.49 |
|  Total from operations | 0.89 | (0.95) | 4.96 | 0.86 | 0.93 | 1.75 |
|  **Redemption fee <sup>2</sup>**  | **—** | **—** | **—** | **—** | **—** | **—** |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.15) | (0.24) | (0.21) | (0.24) | (0.40) | (0.26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (1.44) | (1.89) | (0.86) | (1.59) | (2.77) | (1.68) |
|  Total distributions | (1.59) | (2.13) | (1.07) | (1.83) | (3.17) | (1.94) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $13.59 | $14.29 | $17.37 | $13.48 | $14.45 | $16.69 |
|  Total investment return <sup>3</sup>  | 6.15% | (7.27%) | 38.13% | 5.46% | 8.37% | 10.36% |
|  Net assets at end of period (000's omitted) | $196267 | $191010 | $207378 | $172746 | $214204 | $918584 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | 0.78% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 1.18% | 1.11% | 1.08% | 1.30% | 2.04% | 1.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.48% | 1.41% | 1.38% | 1.60% | 2.34% | 1.53% |
|  Portfolio turnover rate (excluding short-term securities) | 24.52%<sup>6</sup> | 58.96% | 42.93% | 68.43% | 51.52% | 68.38% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **59** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class S** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class S** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $14.20 | $17.27 | $13.40 | $14.37 | $16.61 | $16.81 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.09 | 0.19 | 0.17 | 0.19 | 0.32 | 0.22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.77 | (1.17) | 4.73 | 0.63 | 0.57 | 1.47 |
|  Total from operations | 0.86 | (0.98) | 4.90 | 0.82 | 0.89 | 1.69 |
|  **Redemption fee** | —<sup>2</sup> |  | —<sup>2</sup> | —<sup>2</sup> | —<sup>2</sup> | —<sup>2</sup> |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.12) | (0.20) | (0.17) | (0.20) | (0.36) | (0.21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (1.44) | (1.89) | (0.86) | (1.59) | (2.77) | (1.68) |
|  Total distributions | (1.56) | (2.09) | (1.03) | (1.79) | (3.13) | (1.89) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $13.50 | $14.20 | $17.27 | $13.40 | $14.37 | $16.61 |
|  Total investment return <sup>3</sup>  | 5.98% | (7.50%) | 37.87% | 5.19% | 8.12% | 10.06% |
|  Net assets at end of period (000's omitted) | $21990 | $21915 | $31295 | $29106 | $39729 | $51331 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% | 0.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.92% | 0.85% | 0.83% | 1.05% | 1.80% | 1.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.22% | 1.15% | 1.13% | 1.35% | 2.10% | 1.28% |
|  Portfolio turnover rate (excluding short-term securities) | 24.52%<sup>6</sup> | 58.96% | 42.93% | 68.43% | 51.52% | 68.38% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| **60** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Global Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class I** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class I** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $19.77 | $22.47 | $16.87 | $16.34 | $15.24 | $14.54 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.08 | 0.21 | 0.20 | 0.22 | 0.28 | 0.27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.38 | (2.73) | 5.59 | 0.57 | 1.10 | 0.67 |
|  Total from operations | 0.46 | (2.52) | 5.79 | 0.79 | 1.38 | 0.94 |
|  **Redemption fee** |  |  |  | —<sup>2</sup> | —<sup>2</sup> |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.18) | (0.18) | (0.19) | (0.26) | (0.28) | (0.24) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $20.05 | $19.77 | $22.47 | $16.87 | $16.34 | $15.24 |
|  Total investment return <sup>3</sup>  | 2.38% | (11.31%) | 34.61% | 4.93% | 9.18% | 6.46% |
|  Net assets at end of period (000's omitted) | $38626 | $37057 | $41461 | $31361 | $30823 | $28778 |
| **Ratios: <sup>4</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.54% | 0.66% | 0.77% | 1.11% | 1.53% | 1.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 0.79% | 0.91% | 1.02% | 1.36% | 1.78% | 1.78% |
|  Portfolio turnover rate (excluding short-term securities) | 4.06%<sup>6</sup> | 4.64% | 11.55% | 22.15% | 15.07% | 19.80% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **61** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Global Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class S** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class S** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $19.74 | $22.45 | $16.85 | $16.33 | $15.22 | $14.53 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.05 | 0.15 | 0.15 | 0.18 | 0.24 | 0.23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.39 | (2.73) | 5.60 | 0.56 | 1.11 | 0.66 |
|  Total from operations | 0.44 | (2.58) | 5.75 | 0.74 | 1.35 | 0.89 |
|  **Redemption fee** |  |  | —<sup>2</sup> | —<sup>2</sup> |  |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.14) | (0.13) | (0.15) | (0.22) | (0.24) | (0.20) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $20.04 | $19.74 | $22.45 | $16.85 | $16.33 | $15.22 |
|  Total investment return <sup>3</sup>  | 2.28% | (11.58%) | 34.32% | 4.60% | 8.98% | 6.13% |
|  Net assets at end of period (000's omitted) | $3363 | $3391 | $4093 | $3391 | $3241 | $3246 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.29% | 0.39% | 0.52% | 0.87% | 1.28% | 1.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 0.54% | 0.64% | 0.77% | 1.12% | 1.53% | 1.52% |
|  Portfolio turnover rate (excluding short-term securities) | 4.06%<sup>6</sup> | 4.64% | 11.55% | 22.15% | 15.07% | 19.80% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| **62** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Large Cap Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $48.29 | $63.04 | $47.07 | $42.53 | $42.40 | $40.56 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) <sup>1</sup>  | 0.02 | (0.09) | (0.06) | 0.07 | 0.16 | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.46) | (10.74) | 18.95 | 8.60 | 3.61 | 6.55 |
|  Total from operations | (0.44) | (10.83) | 18.89 | 8.67 | 3.77 | 6.68 |
|  **Redemption fee** | **—** **<sup>2</sup>** | **—** | **—** **<sup>2</sup>** | **—** **<sup>2</sup>** | **—** **<sup>2</sup>** | **—** **<sup>2</sup>** |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income |  |  | (0.02) | (0.12) | (0.15) | (0.17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (1.78) | (3.92) | (2.90) | (4.01) | (3.49) | (4.67) |
|  Total distributions | (1.78) | (3.92) | (2.92) | (4.13) | (3.64) | (4.84) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $46.07 | $48.29 | $63.04 | $47.07 | $42.53 | $42.40 |
|  Total investment return <sup>3</sup>  | (0.99%) | (18.78%) | 41.12% | 21.34% | 10.54% | 16.93% |
|  Net assets at end of period (000's omitted) | $132128 | $136435 | $177096 | $129154 | $116581 | $118792 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | 0.10% | (0.15%) | (0.11%) | 0.17% | 0.39% | 0.30% |
|  Portfolio turnover rate (excluding short-term securities) | 1.67%<sup>5</sup> | 10.83% | 9.75% | 14.53% | 16.02% | 15.02% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **63** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit ESG Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class I** | Six Months Ended |  | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class I** | December 31, 2022<br>(Unaudited) |  |  |  |  |  |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $14.87 | $18.17 | $13.85 | $13.21 | $12.37 | $11.29 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.04 | 0.10 | 0.12 | 0.12 | 0.17 | 0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains<br>(losses) | 0.37 | (3.13) | 4.30 | 0.74 | 0.83 | 1.03 |
|  Total from operations | 0.41 | (3.03) | 4.42 | 0.86 | 1.00 | 1.19 |
|  **Redemption fee** |  |  | —<sup>2</sup> |  |  |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.10) | (0.08) | (0.10) | (0.17) | (0.16) | (0.11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.39) | (0.19) |  | (0.05) |  |  |
|  Total distributions | (0.49) | (0.27) | (0.10) | (0.22) | (0.16) | (0.11) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $14.79 | $14.87 | $18.17 | $13.85 | $13.21 | $12.37 |
|  Total investment return <sup>3</sup>  | 2.69% | (16.97%) | 31.97% | 6.47% | 8.30% | 10.57% |
|  Net assets at end of period (000's omitted) | $3803 | $3740 | $4841 | $3477 | $3387 | $3041 |
| **Ratios: <sup>4</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.26% | 0.30% | 0.48% | 0.63% | 1.14% | 1.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 0.51% | 0.55% | 0.73% | 0.88% | 1.38% | 1.29% |
|  Portfolio turnover rate (excluding short-term securities) | 4.29%<sup>6</sup> | 9.23% | 7.39% | 25.28% | 9.26% | 14.97% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| **64** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit ESG Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class S** | Six Months Ended |  | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class S** | December 31, 2022<br>(Unaudited) |  |  |  |  |  |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $14.74 | $18.05 | $13.78 | $13.16 | $12.34 | $11.28 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.02 | 0.05 | 0.08 | 0.08 | 0.14 | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.37 | (3.11) | 4.27 | 0.74 | 0.83 | 1.03 |
|  Total from operations | 0.39 | (3.06) | 4.35 | 0.82 | 0.97 | 1.16 |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.08) | (0.06) | (0.08) | (0.15) | (0.15) | (0.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.39) | (0.19) |  | (0.05) |  |  |
|  Total distributions | (0.47) | (0.25) | (0.08) | (0.20) | (0.15) | (0.10) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $14.66 | $14.74 | $18.05 | $13.78 | $13.16 | $12.34 |
|  Total investment return <sup>2</sup>  | 2.58% | (17.24%) | 31.61% | 6.22% | 8.01% | 10.37% |
|  Net assets at end of period (000's omitted) | $3769 | $3577 | $4279 | $3158 | $2895 | $2660 |
| **Ratios: <sup>3</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>4</sup>  | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>4</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.01% | 0.05% | 0.23% | 0.38% | 0.89% | 0.84% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 0.26% | 0.30% | 0.48% | 0.63% | 1.14% | 1.03% |
|  Portfolio turnover rate (excluding short-term securities) | 4.29%<sup>5</sup> | 9.23% | 7.39% | 25.28% | 9.26% | 14.97% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>3</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>4</sup> Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>5</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **65** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Mid Cap Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $16.96 | $25.41 | $19.05 | $18.84 | $18.96 | $18.06 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) <sup>1</sup>  | 0.01 | (0.12) | (0.10) | (0.05) | (0.03) | (0.03) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 1.34 | (5.37) | 7.44 | 1.64 | 1.79 | 1.71 |
|  Total from operations | 1.35 | (5.49) | 7.34 | 1.59 | 1.76 | 1.68 |
|  **Redemption fee** |  | —<sup>2</sup> | —<sup>2</sup> | —<sup>2</sup> | —<sup>2</sup> | —<sup>2</sup> |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income |  |  |  |  |  | —<sup>2</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.55) | (2.96) | (0.98) | (1.38) | (1.88) | (0.78) |
|  Total distributions | (0.55) | (2.96) | (0.98) | (1.38) | (1.88) | (0.78) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $17.76 | $16.96 | $25.41 | $19.05 | $18.84 | $18.96 |
|  Total investment return <sup>3</sup>  | 7.90% | (24.70%) | 38.99% | 8.75% | 11.76% | 9.42% |
|  Net assets at end of period (000's omitted) | $170070 | $164430 | $228171 | $172744 | $169099 | $158501 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss) | 0.05% | (0.52%) | (0.46%) | (0.27%) | (0.16%) | (0.17%) |
|  Portfolio turnover rate (excluding short-term securities) | 3.43%<sup>5</sup> | 13.16% | 19.54% | 25.58% | 27.70% | 28.89% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Not annualized.

---

| | |
|:---|:---|
| **66** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Small Cap Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class I** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class I** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $12.85 | $16.73 | $11.39 | $11.89 | $12.27 | $11.47 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.12 | 0.14 | 0.13 | 0.13 | 0.15 | 0.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.67 | (2.61) | 5.32 | (0.49) | (0.25) | 0.80 |
|  Total from operations | 0.79 | (2.47) | 5.45 | (0.36) | (0.10) | 0.91 |
|  **Redemption fee** |  | —<sup>2</sup> |  |  |  |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.16) | (0.14) | (0.11) | (0.14) | (0.15) | (0.11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.37) | (1.27) |  |  | (0.13) |  |
|  Total distributions | (0.53) | (1.41) | (0.11) | (0.14) | (0.28) | (0.11) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $13.11 | $12.85 | $16.73 | $11.39 | $11.89 | $12.27 |
|  Total investment return <sup>3</sup>  | 6.19% | (16.30%) | 48.13% | (3.05%) | (0.54%) | 8.00% |
|  Net assets at end of period (000's omitted) | $14808 | $14209 | $17114 | $11786 | $12559 | $14597 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 0.90% | 0.95% | 1.00% | 1.00% | 1.00% | 1.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 1.37% | 0.59% | 0.67% | 0.90% | 1.07% | 0.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.72% | 0.89% | 0.92% | 1.15% | 1.32% | 0.94% |
|  Portfolio turnover rate (excluding short-term securities) | 9.51%<sup>6</sup> | 18.47% | 27.91% | 27.58% | 24.17% | 29.74% |

---

------

1 The net investment income per share is based on average shares outstanding for the period.

---

| | |
|:---|:---|
| 2 | Amount represents less than $0.01 per share.  |

---

---

| | |
|:---|:---|
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.  |

---

---

| | |
|:---|:---|
| 4 | Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.  |

---

---

| | |
|:---|:---|
| 5 | Total Fund expenses are limited to 1.25% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.  |

---

6 Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **67** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Small Cap Dividend Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Class S** | Six Months Ended | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| **Class S** | December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $12.84 | $16.72 | $11.38 | $11.88 | $12.26 | $11.46 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.10 | 0.11 | 0.10 | 0.10 | 0.12 | 0.08 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.66 | (2.62) | 5.32 | (0.49) | (0.25) | 0.80 |
|  Total from operations | 0.76 | (2.51) | 5.42 | (0.39) | (0.13) | 0.88 |
|  **Redemption fee** |  | —<sup>2</sup> |  |  |  |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.13) | (0.10) | (0.08) | (0.11) | (0.12) | (0.08) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.37) | (1.27) |  |  | (0.13) |  |
|  Total distributions | (0.50) | (1.37) | (0.08) | (0.11) | (0.25) | (0.08) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $13.10 | $12.84 | $16.72 | $11.38 | $11.88 | $12.26 |
|  Total investment return <sup>3</sup>  | 5.99% | (16.48%) | 47.73% | (3.30%) | (0.80%) | 7.74% |
|  Net assets at end of period (000's omitted) | $4705 | $4323 | $5187 | $3720 | $3981 | $3882 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 1.15% | 1.20% | 1.25% | 1.25% | 1.25% | 1.31% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 1.13% | 0.42% | 0.42% | 0.64% | 0.82% | 0.51% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.48% | 0.72% | 0.67% | 0.89% | 1.07% | 0.70% |
|  Portfolio turnover rate (excluding short-term securities) | 9.51%<sup>6</sup> | 18.47% | 27.91% | 27.58% | 24.17% | 29.74% |

---

------

1 The net investment income per share is based on average shares outstanding for the period.

---

| | |
|:---|:---|
| 2 | Amount represents less than $0.01 per share.  |

---

---

| | |
|:---|:---|
| 3 | Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.  |

---

---

| | |
|:---|:---|
| 4 | Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios.  |

---

---

| | |
|:---|:---|
| 5 | Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.  |

---

6 Not annualized.

---

| | |
|:---|:---|
| **68** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Small Cap Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $52.41 | $82.14 | $56.81 | $55.46 | $57.18 | $54.18 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment loss <sup>1</sup>  | (0.01) | (0.48) | (0.44) | (0.28) | (0.25) | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 1.81 | (17.68) | 28.28 | 3.38 | 2.88 | 7.01 |
|  Total from operations | 1.80 | (18.16) | 27.84 | 3.10 | 2.63 | 6.72 |
|  **Redemption fee <sup>2</sup>**  |  |  |  |  |  |  |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.92) | (11.57) | (2.51) | (1.75) | (4.35) | (3.72) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $53.29 | $52.41 | $82.14 | $56.81 | $55.46 | $57.18 |
|  Total investment return <sup>3</sup>  | 3.43% | (25.57%) | 49.65% | 5.68% | 6.45% | 12.68% |
|  Net assets at end of period (000's omitted) | $98914 | $98444 | $145859 | $100613 | $99630 | $100038 |
|  **Ratios: <sup>4</sup>**  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment loss | (0.03%) | (0.67%) | (0.62%) | (0.53%) | (0.47%) | (0.51%) |
|  Portfolio turnover rate (excluding short-term securities) | 9.21%<sup>5</sup> | 15.64% | 30.54% | 25.74% | 26.34% | 29.01% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **69** |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit International Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $17.78 | $23.27 | $17.38 | $17.13 | $16.75 | $16.23 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.06 | 0.20 | 0.05 | 0.06 | 0.16 | 0.19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | 0.61 | (5.63) | 5.89 | 0.36 | 0.40 | 0.47 |
|  Total from operations | 0.67 | (5.43) | 5.94 | 0.42 | 0.56 | 0.66 |
|  **Redemption fee** |  |  |  | —<sup>2</sup> |  | —<sup>2</sup> |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.27) | (0.06) | (0.05) | (0.17) | (0.18) | (0.14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.09) |  |  |  |  |  |
|  Total distributions | (0.36) | (0.06) | (0.05) | (0.17) | (0.18) | (0.14) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $18.09 | $17.78 | $23.27 | $17.38 | $17.13 | $16.75 |
|  Total investment return <sup>3</sup>  | 3.76% | (23.41%) | 34.18% | 2.43% | 3.55% | 4.06% |
|  Net assets at end of period (000's omitted) | $23070 | $22454 | $31345 | $23005 | $23463 | $23875 |
| **Ratios: <sup>4</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) | 1.50%<sup>5</sup> | 1.50%<sup>5</sup> | 1.50% | 1.50% | 1.50% | 1.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) | 0.85%<sup>5</sup> | 1.20%<sup>5</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.03% | 0.59% | 0.26% | 0.35% | 0.97% | 1.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 0.68% | 0.88% |  |  |  |  |
|  Portfolio turnover rate (excluding short-term securities) | 4.10%<sup>6</sup> | 7.76% | 12.61% | 13.38% | 27.38% | 16.35% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 1.50% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| **70** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

---

------

**FINANCIAL HIGHLIGHTS** 

*Per share income and capital changes for a share outstanding throughout the period. See accompanying notes to financial statements.* 

**Sit Developing Markets Growth Fund** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, | Year Ended June 30, |
| | Six Months Ended<br>December 31, 2022<br>(Unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Net Asset Value:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning of period | $15.46 | $21.40 | $16.28 | $16.21 | $17.25 | $15.23 |
|  **Operations:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income <sup>1</sup>  | 0.08 | 0.21 | 0.01 | 0.26 | 0.10 | 0.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gains (losses) | (0.15) | (5.76) | 5.17 | 0.11 | (0.90) | 2.24 |
|  Total from operations | (0.07) | (5.55) | 5.18 | 0.37 | (0.80) | 2.27 |
|  **Redemption fee** | —<sup>2</sup> |  |  | —<sup>2</sup> |  | —<sup>2</sup> |
|  **Distributions to Shareholders:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net investment income | (0.29) | (0.02) | (0.02) | (0.30) | (0.08) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From net realized gains | (0.08) | (0.37) | (0.04) |  | (0.16) | (0.25) |
|  Total distributions | (0.37) | (0.39) | (0.06) | (0.30) | (0.24) | (0.25) |
|  **Net Asset Value** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; End of period | $15.02 | $15.46 | $21.40 | $16.28 | $16.21 | $17.25 |
|  Total investment return <sup>3</sup>  | (0.47%) | (26.19%) | 31.79% | 2.20% | (4.43%) | 14.94% |
|  Net assets at end of period (000's omitted) | $9326 | $9400 | $13883 | $10260 | $9996 | $11027 |
| **Ratios: <sup>4</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (without waiver) <sup>5</sup>  | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses (with waiver) <sup>5</sup>  | 0.95% | 1.20% | 1.40% | 1.40% | 1.40% | 1.54% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (without waiver) | 0.04% | 0.35% | (0.55%) | 1.05% | 0.03% | (0.26%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (with waiver) | 1.09% | 1.15% | 0.05% | 1.65% | 0.63% | 0.20% |
|  Portfolio turnover rate (excluding short-term securities) | 0.50%<sup>6</sup> | 2.49% | 7.52% | 4.15% | 10.28% | 30.30% |

---

------

<sup>1</sup> The net investment income per share is based on average shares outstanding for the period.

<sup>2</sup> Amount represents less than $0.01 per share. 

<sup>3</sup> Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value. 

<sup>4</sup> Ratios are annualized for periods less than one year. In addition to fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the above reported expense ratios. 

<sup>5</sup> Total Fund expenses are limited to 2.00% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund. 

<sup>6</sup> Not annualized.

---

| | |
|:---|:---|
| DECEMBER 31, 2022 | **71** |

---

------

**NOTES TO FINANCIAL STATEMENTS (Unaudited)** 

Six Months Ended December 31, 2022

**(1)** **Organization** 

The Sit Mutual Funds covered by this report are Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit Large Cap Growth Fund, Sit ESG Growth Fund, Sit Mid Cap Growth Fund, Sit Small Cap Dividend Growth Fund, Sit Small Cap Growth Fund, Sit International Growth Fund, and Sit Developing Markets Growth Fund (each a "Fund" and collectively, the "Funds"). The Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Balanced Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit ESG Growth Fund, Sit Small Cap Dividend Growth Fund, Sit Small Cap Growth Fund, Sit International Growth Fund, and Sit Developing Markets Growth Fund are series funds of Sit Mutual Funds, Inc. Each Fund has 10 billion authorized shares of capital stock with a par value of $0.001. This report covers the equity Funds of the Sit Mutual Funds.

The investment objective for each Fund is as follows:

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| | |
|:---|:---|
| **Fund** | **Investment Objective** |
| Balanced Fund | Long-term growth consistent with the preservation of principal and to provide regular income. |
| Dividend Growth Fund | Provide current income that exceeds the dividend yield of the S&P 500<sup>®</sup> Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Global Dividend Growth Fund | Provide current income that exceeds the dividend yield of the MSCI World Index that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Large Cap Growth Fund | Maximize long-term capital appreciation. |
| ESG Growth Fund | Maximize long-term capital appreciation. |
| Mid Cap Growth Fund | Maximize long-term capital appreciation. |
| Small Cap Dividend Growth Fund | Provide current income that exceeds the yield of the Russell 2000<sup>®</sup> Index and that grows over a period of years. Secondarily, maximize long-term capital appreciation. |
| Small Cap Growth Fund | Maximize long-term capital appreciation. |
| International Growth Fund | Maximize long-term growth. |
| Developing Markets Growth Fund | Maximize long-term capital appreciation. |

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The Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap Dividend Growth Funds offer Class I and Class S shares. Both classes of shares have identical voting, dividend, and liquidation rights. The distribution fee differs among classes, the Class S shares have a 0.25% distribution fee, whereas Class I has no distribution fee. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.

**(2)** **Significant Accounting Policies** 

The Funds are investment companies and follow accounting and reporting guidance under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, "Financial Services-Investment Companies". The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements in conformity with U.S. generally accepted accounting principles ("GAAP").

*Investments in Securities* 

Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Equity securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available, at the last reported bid price. The sale and bid prices or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Consistent with the Funds' valuation policies and procedures, debt securities maturing in more than 60 days are priced by an independent pricing service. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality, and

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|:---|:---|
| **72** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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prepayment speeds as applicable. When market quotations are not readily available, or when Sit Investment Associates, Inc. (the "Adviser" or "SIA") becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Funds' Board of Directors. The procedures consider, among others, the following factors to determine a security's fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. Debt securities of sufficient credit quality maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value.

Security transactions are accounted for on the date the securities are purchased or sold. Securities gains and losses are calculated on the identified-cost basis. Dividend income is recorded on the ex-dividend date or upon the receipt of ex-dividend notification in the case of certain foreign securities. Interest income is recorded on an accrual basis, including level-yield amortization of long-term bond premium and discount using the effective yield method.

*Fair Value Measurements* 

The inputs and valuation techniques used to measure fair value of the Funds' investments are summarized into three levels as described in the hierarchy below:

• Level 1 – quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

• Level 2 – debt securities are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, U.S. government and government agency obligations, and municipal securities the pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. For asset-backed securities and mortgage-backed securities, the pricing services utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity, and type as well as dealer supplied prices. For foreign equities, the pricing services adjust closing prices by applying a systematic process for events occurring after the close of the foreign exchange by utilizing such inputs as Depositary Receipts, quoted prices for similar securities, exchange rates, and certain indexes. All of these inputs are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.

• Level 3 – significant unobservable inputs, including the Adviser's own assumptions in determining the fair value of investments.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

A summary of the levels for the Funds' investments as of December 31, 2022 is included with the Funds' schedules of investments.

*Foreign Currency Translations and Forward Foreign Currency Contracts* 

The fair value of securities and other assets and liabilities denominated in foreign currencies for Global Dividend Growth, ESG Growth, International Growth and Developing Markets Growth Funds are translated daily into U.S. dollars at the closing rate of exchange (approximately 4:00 p.m. Eastern Time). Purchases and sales of securities, income and expenses are translated at the exchange rate on the transaction date. Dividend and interest income includes currency exchange gains (losses) realized between the accrual and payment dates on such income. Exchange gains (losses) may also be realized between the trade and settlement dates on security and forward contract transactions. For securities denominated in foreign currencies, the effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses.

The Global Dividend Growth, ESG Growth, International Growth and Developing Markets Growth Funds may enter into forward foreign currency exchange contracts generally for operational purposes, but the Adviser may occasionally utilize contracts to protect against adverse exchange rate fluctuation. Any gains (losses) generated by these contracts are disclosed separately on the statements of operations.

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|:---|:---|
| DECEMBER 31, 2022 | **73** |

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**NOTES TO FINANCIAL STATEMENTS (Unaudited)** 

Six Months Ended December 31, 2022 (Continued)

The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract.

*Federal Taxes* 

The Funds' policy is to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. Therefore, no income tax provision is required. In order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis. Also, the Funds may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain for income tax purposes.

Management has analyzed the Funds' tax positions taken in federal tax returns for all open tax years and has concluded that as of December 31, 2022, no provision for income tax would be required in the Funds' financial statements. The Funds' federal and state income and federal excise tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue until such time as the applicable statute of limitations for audit has expired. For example, U.S. tax returns are generally subject to audit for three years from the date they are filed.

At December 31, 2022, the gross unrealized appreciation (depreciation) on investments and cost of securities on a tax basis for federal income tax purposes were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unrealized<br>Appreciation** | **Unrealized<br>Depreciation** | **Net Unrealized<br>Appreciation<br>(Depreciation)** | **Cost of<br>Securities on a<br>Tax Basis** |
|  Balanced Fund | $10329246 | ($2675006) | $7654240 | $35797637 |
|  Dividend Growth Fund | 40502540 | (5012758) | 35489782 | 183493620 |
|  Global Dividend Growth Fund | 16170787 | (1213643) | 14957144 | 26971695 |
|  Large Cap Growth Fund | 74158903 | (2834286) | 71324617 | 60861922 |
|  ESG Growth Fund | 2485412 | (367314) | 2118098 | 5446271 |
|  Mid Cap Growth Fund | 77878854 | (5099693) | 72779161 | 97434928 |
|  Small Cap Dividend Growth Fund | 5075638 | (1433017) | 3642621 | 15652012 |
|  Small Cap Growth Fund | 38497639 | (5200407) | 33297232 | 65646187 |
|  International Growth Fund | 6383421 | (1301139) | 5082282 | 17888875 |
|  Developing Markets Growth Fund | 2966116 | (1245158) | 1720958 | 7590267 |

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Net investment income and net realized gains differ for financial statement and tax purposes because of corporate actions on shares held and/or losses deferred due to "wash sale" transactions. A "wash sale" occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). The character of distributions made during the year from net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid during the fiscal years ended June 30, 2022 and 2021 was as follows:

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|:---|:---|
| **74** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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| | | | |
|:---|:---|:---|:---|
| **Year Ended June 30, 2022:** | | | |
|  | <br>**Ordinary Income** | <br>**Long Term<br>Capital Gain** | <br> **Total** |
|  Balanced Fund | $682176 | $2274137 | $2956313 |
|  Dividend Growth Fund (Class I) | 3242312 | 22439549 | 25681861 |
|  Dividend Growth Fund (Class S) | 349898 | 2818447 | 3168345 |
|  Global Dividend Growth Fund (Class I) | 334135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 334135 |
|  Global Dividend Growth Fund (Class S) | 22870 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 22870 |
|  Large Cap Growth Fund | 4575 | 10817703 | 10822278 |
|  ESG Growth Fund (Class I) | 23120 | 48536 | 71656 |
|  ESG Growth Fund (Class S) | 15486 | 44262 | 59748 |
|  Mid Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 26173363 | 26173363 |
|  Small Cap Dividend Growth Fund (Class I) | 170582 | 1267749 | 1438331 |
|  Small Cap Dividend Growth Fund (Class S) | 38830 | 390273 | 429103 |
|  Small Cap Growth Fund | 1227477 | 18447720 | 19675197 |
|  International Growth Fund | 72739 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 72739 |
|  Developing Markets Growth Fund | 14001 | 238775 | 252776 |
|  **Year Ended June 30, 2021:** |  |  |  |
|  | **Ordinary Income** | **Long Term<br>Capital Gain** | **Total** |
|  Balanced Fund | $503459 | $381513 | $884972 |
|  Dividend Growth Fund (Class I) | 2537370 | 10512017 | 13049387 |
|  Dividend Growth Fund (Class S) | 332660 | 1610976 | 1943636 |
|  Global Dividend Growth Fund (Class I) | 357992 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 357992 |
|  Global Dividend Growth Fund (Class S) | 28011 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 28011 |
|  Large Cap Growth Fund | 63677 | 7881267 | 7944944 |
|  ESG Growth Fund (Class I) | 24675 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 24675 |
|  ESG Growth Fund (Class S) | 17325 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 17325 |
|  Mid Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 8583537 | 8583537 |
|  Small Cap Dividend Growth Fund (Class I) | 113108 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 113108 |
|  Small Cap Dividend Growth Fund (Class S) | 24893 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 24893 |
|  Small Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 4398753 | 4398753 |
|  International Growth Fund | 61406 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 61406 |
|  Developing Markets Growth Fund | 10868 | 23930 | 34798 |

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As of June 30, 2022, the components of distributable earnings on a tax basis were as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Undistributed<br>Ordinary<br>Income** | **Undistributed**<br> **Long-Term**<br> **Capital Gains** | **Unrealized<br>Appreciation<br> (Depreciation)** |
|  Balanced Fund | $130676 | $1580798 | $8476449 |
|  Dividend Growth Fund | 620638 | 16933121 | 29591632 |
|  Global Dividend Growth Fund | 211178 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 13885807 |
|  Large Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 4469489 | 73497481 |
|  ESG Growth Fund | 28129 | 194228 | 1896872 |
|  Mid Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 3866225 | 57284254 |
|  Small Cap Dividend Growth Fund | 68015 | 282849 | 2848280 |
|  Small Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 1011816 | 30546784 |
|  International Growth Fund | 256203 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 4498899 |
|  Developing Markets Growth Fund | 125010 | 46143 | 1826157 |

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|:---|:---|
| DECEMBER 31, 2022 | **75** |

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**NOTES TO FINANCIAL STATEMENTS (Unaudited)** 

Six Months Ended December 31, 2022 (Continued)

Net capital loss carryovers and late year losses, if any, as of June 30, 2022, are available to offset future realized capital gains and thereby reduce future capital gains distributions. The Funds' are permitted to carry forward capital losses for an unlimited period. Capital losses that are carried forward retain their character as either short-term or long-term capital losses. The net capital loss carryovers and the late year losses deferred as of June 30, 2022, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Unlimited Period of Net** | **Unlimited Period of Net** | **Late Year** | **Late Year** |
|  | **Capital Loss Carryover** | **Capital Loss Carryover** | **Losses Deferred** | **Losses Deferred** |
|  | **Short-Term** | **Long-Term** | **Ordinary** | **Capital** |
|  Global Dividend Growth Fund | $117472 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Large Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $26673 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Mid Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 416221 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Small Cap Growth Fund | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 375534 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  International Growth Fund | 93954 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

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For the year ended June 30, 2022, the Funds' utilized capital losses and expired capital losses as follows:

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| | | |
|:---|:---|:---|
|  | **Utilized** | **Expired** |
|  Global Dividend Growth Fund | $805761 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  International Growth Fund | 695062 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

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*Distributions* 

Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds' capital stock. Distributions from net investment income, if any, are declared and paid quarterly for the Balanced, Dividend Growth, Global Dividend Growth and Small Cap Dividend Growth Funds and declared and paid annually for Developing Markets Growth, Small Cap Growth, International Growth, Mid Cap Growth, Large Cap Growth and ESG Growth Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds.

*Concentration of Investments* 

The Developing Markets Growth Fund may concentrate investments in countries with limited or developing capital markets which may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income it generates, as well as the Fund's ability to repatriate such amounts.

*Use of Estimates* 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results for the respective periods. Actual results could differ from those estimates.

*Guarantees and Indemnifications* 

Under each Fund's organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to each Fund. In addition, certain of each Fund's contracts with its service providers contain general indemnification clauses. Each Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against each Fund cannot be determined and each Fund has no historical basis for predicting the likelihood of any such claims.

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| **76** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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**(3)** **Investment Security Transactions** 

The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the six months ended December 31, 2022, were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Purchases** | **Purchases** | **Proceeds** | **Proceeds** |
|  | **U.S. Government** | **Other** | **U.S. Government** | **Other** |
|  Balanced Fund | $5511680 | $2102795 | $3519030 | $4921411 |
|  Dividend Growth Fund |  | 53446529 |  | 56011910 |
|  Global Dividend Growth Fund |  | 1819820 |  | 1645820 |
|  Large Cap Growth Fund |  | 2302533 |  | 5055871 |
|  ESG Growth Fund |  | 311204 |  | 372296 |
|  Mid Cap Growth Fund |  | 5815817 |  | 13147019 |
|  Small Cap Dividend Growth Fund |  | 1804491 |  | 1945058 |
|  Small Cap Growth Fund |  | 9289230 |  | 9126153 |
|  International Growth Fund |  | 911282 |  | 1043149 |
|  Developing Markets Growth Fund |  | 69551 |  | 43890 |

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**(4)** **Affiliated Fees and Transactions** 

*Investment Adviser* 

The Funds each have entered into an investment management agreement with SIA, under which SIA manages the Funds' assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. The current fee for investment management and advisory services is based on the average daily net assets of the Funds at the annual rate of:

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| | | |
|:---|:---|:---|
|  |<br> **Management Fees** | **Net of Adviser's**<br> **Voluntary Fee Waiver** |
|  Balanced Fund | 1.00% | 0.80% |
|  Dividend Growth Fund Class I and Class S | 1.00% | 0.70% |
|  Global Dividend Growth Fund Class I and Class S | 1.25% | 1.00% |
|  Large Cap Growth Fund | 1.00% | N/A |
|  ESG Growth Fund Class I and Class S | 1.25% | 1.00% |
|  Mid Cap Growth Fund | 1.25% | N/A |
|  Small Cap Dividend Growth Fund Class I and Class S | 1.25% | 0.90% |
|  Small Cap Growth Fund | 1.50% | N/A |
|  International Growth Fund | 1.50% | 0.85% |
|  Developing Markets Growth Fund | 2.00% | 0.95% |

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SIA is obligated to pay all of the Funds' expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, 12b-1 fees and other transaction charges relating to investing activities).

In addition to the annual management fees, the Class S shares of the Dividend Growth, Global Dividend Growth, ESG Growth and Small Cap Dividend Growth Funds also have a 0.25% annual distribution (12b-1) fee, which is used to pay for distribution fees related to the sale and distribution of such shares.

Effective January 1, 2022, the Adviser has agreed to voluntarily limit the management fee of the Balanced Fund to 0.80%, the Small Cap Dividend Growth Fund to 0.90% (prior to January 1, 2022, the limitation was 1.00%), the International Growth Fund to 0.85% and the Developing Markets Growth Fund to 0.95% (prior to January 1, 2022, the limitation was 1.40%) for the period through December 31, 2022 of the Fund's daily average net assets, respectively.

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| DECEMBER 31, 2022 | **77** |

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**NOTES TO FINANCIAL STATEMENTS (Unaudited)** 

Six Months Ended December 31, 2022 (Continued)

Effective October 1, 2017, the Adviser has agreed to limit the management fee of the Dividend Growth Fund to 0.70%, the Global Dividend Growth Fund to 1.00% and the ESG Growth Fund to 1.00% for the period through June 30, 2023 of the Fund's daily average net assets, respectively.

*Transactions with affiliates* 

The Adviser, affiliates of the Adviser, directors and officers of the Funds as a whole owned the following shares as of December 31, 2022:

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| | | |
|:---|:---|:---|
|  | **Shares** | **% Shares<br> Outstanding** |
|  Balanced Fund | 436450 | 25.4 |
|  Dividend Growth Fund | 1927966 | 12.0 |
|  Global Dividend Growth Fund | 508391 | 24.3 |
|  Large Cap Growth Fund | 855243 | 29.8 |
|  ESG Growth Fund | 475929 | 92.6 |
|  Mid Cap Growth Fund | 4832123 | 50.5 |
|  Small Cap Dividend Growth Fund | 733465 | 49.3 |
|  Small Cap Growth Fund | 1133118 | 61.0 |
|  International Growth Fund | 740961 | 58.1 |
|  Developing Markets Growth Fund | 303214 | 48.8 |

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**(5)** **Credit Facility** 

The Funds, together with the 4 bond Sit Mutual Funds managed by SIA, are borrowers in a $20 million credit facility (Credit Facility) maturing November 28, 2023. The Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Under the terms of the Credit Facility, each Fund shall pay interest charged on any borrowings made by the Fund. During the period ended December 31, 2023, the Funds did not use the Credit Facility.

**(6)** **Capital Share Activity** 

*Short-Term Trading (Redemption) Fees* 

The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. For the six months ended December 31, 2022, the Funds received the following redemption fees:

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| | | |
|:---|:---|:---|
|  | **Class I** | **Class S** |
|  Dividend Growth Fund | $925 | $11 |
|  Large Cap Growth Fund | 212 |  |
|  Small Cap Growth Fund | 7 |  |
|  Developing Markets Growth Fund | 2 |  |

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| **78** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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**EXPENSE EXAMPLE (Unaudited)** 

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2022 to December 31, 2022.

**Actual Expenses** 

The first line of the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs (redemption fees) were included, your costs would have been higher.

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| | | | |
|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>(7/1/22)** | **Ending<br>Account<br>Value<br>(12/31/22)** | **Expenses**<br> **Paid During**<br> **Period<br>(7/1/22-<br>12/31/22)** |
| **Balanced Fund** | **Balanced Fund** | **Balanced Fund** | **Balanced Fund** |
|  Actual | $1000 | $994.50 | $4.02 |
|  Hypothetical | $1000 | $1021.17 | $4.08 |
| **Dividend Growth Fund** | **Dividend Growth Fund** | **Dividend Growth Fund** | **Dividend Growth Fund** |
|  Actual |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1061.50 | $3.64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1059.80 | $4.93 |
|  Hypothetical | Hypothetical | Hypothetical | Hypothetical |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1021.68 | $3.57 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1020.42 | $4.84 |
| **Global Dividend Growth Fund** | **Global Dividend Growth Fund** | **Global Dividend Growth Fund** | **Global Dividend Growth Fund** |
|  Actual |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1023.80 | $5.10 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1022.80 | $6.37 |
|  Hypothetical | Hypothetical | Hypothetical | Hypothetical |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1020.16 | $5.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1018.90 | $6.36 |
| **Large Cap Growth Fund** | **Large Cap Growth Fund** | **Large Cap Growth Fund** | **Large Cap Growth Fund** |
|  Actual | $1000 | $990.10 | $5.02 |
|  Hypothetical | $1000 | $1020.16 | $5.09 |
| **ESG Growth Fund** | **ESG Growth Fund** | **ESG Growth Fund** | **ESG Growth Fund** |
|  Actual |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1026.90 | $5.11 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1025.80 | $6.38 |
|  Hypothetical | Hypothetical | Hypothetical | Hypothetical |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1020.16 | $5.09 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1018.90 | $6.36 |
| **Mid Cap Growth Fund** | **Mid Cap Growth Fund** | **Mid Cap Growth Fund** | **Mid Cap Growth Fund** |
|  Actual | $1000 | $1079.00 | $6.55 |
|  Hypothetical | $1000 | $1018.90 | $6.36 |
| **Small Cap Dividend Growth Fund** | **Small Cap Dividend Growth Fund** | **Small Cap Dividend Growth Fund** | **Small Cap Dividend Growth Fund** |
|  Actual |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1061.90 | $4.68 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1059.90 | $5.97 |
|  Hypothetical | Hypothetical | Hypothetical | Hypothetical |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | $1000 | $1020.67 | $4.58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class S | $1000 | $1019.41 | $5.85 |

---

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **79** |

---

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**EXPENSE EXAMPLE (Unaudited) (Continued)** 

---

| | | | |
|:---|:---|:---|:---|
| | **Beginning<br>Account<br>Value<br>(7/1/22)** | **Ending<br>Account<br>Value<br>(12/31/22)** | **Expenses**<br> **Paid During<br>Period \*<br>(7/1/22-<br>12/31/22)** |
| **Small Cap Growth Fund** | **Small Cap Growth Fund** | **Small Cap Growth Fund** | **Small Cap Growth Fund** |
|  Actual | $1000 | $1034.30 | $7.69 |
|  Hypothetical | $1000 | $1017.64 | $7.63 |
| **International Growth Fund** | **International Growth Fund** | **International Growth Fund** | **International Growth Fund** |
|  Actual | $1000 | $1037.60 | $4.37 |
|  Hypothetical | $1000 | $1020.92 | $4.33 |
| **Developing Markets Growth Fund** | **Developing Markets Growth Fund** | **Developing Markets Growth Fund** | **Developing Markets Growth Fund** |
|  Actual | $1000 | $995.30 | $4.78 |
|  Hypothetical | $1000 | $1020.42 | $4.84 |

---

*\** *Expenses are equal to the Fund's annualized expense ratio of 0.70% for the Dividend Growth, Class I Fund; 0.95% for the Dividend Growth, Class S, and Developing Markets Growth Funds; 0.80%, for Balanced, 1.00% for the Global Dividend Growth, Class I, Large Cap Growth, Class I, and ESG Growth, Class I Funds; 0.90% for the Small Cap Dividend Growth, Class I Fund; 1.25% for Global Dividend Growth, Class S, ESG Growth, Class S, and Mid Cap Growth Funds, 1.15% for Small Cap Dividend Growth, Class S Fund; 1.50% for Small Cap Growth Fund, and 0.85% for International Growth Fund, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period.)* 

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| | |
|:---|:---|
| **80** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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------

**ADDITIONAL INFORMATION (Unaudited)** 

**PROXY VOTING** 

A description of the policies and procedures that the Adviser uses to vote proxies related to the Funds' portfolio securities is set forth in the Funds' Statement of Additional Information, which is available on the Funds' website at www.sitfunds.com, without charge by calling 800-332-5580 and on the Securities and Exchange Commission's (SEC) website at www.sec.gov. The Funds' proxy voting record is available without charge by calling 800-332-5580 and on the SEC's website at www.sec.gov no later than August 31 for the prior 12 months ending June.

**QUARTERLY SCHEDULES OF INVESTMENTS** 

Each Fund files a complete schedule of investments with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds' Form N-PORT is available on the SEC's website at www.sec.gov. Each Fund's complete schedule of investments, as filed on Form N-PORT, is also available on its website at www.sitfunds.com, or without charge by calling 800-332-5580.

**STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM** 

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that a fund will be unable to meet requests to redeem its shares without significant dilution of remaining investors' interest in the fund ("Liquidity Risk").

At their joint meeting held on October 24, 2022, the Boards of Directors (the "Boards") of the Sit Mutual Funds (each a "Fund and together, the "Funds") reviewed the Funds' liquidity risk management program (the "Program") pursuant to the Liquidity Rule. In connection with this review, Sit Investment Associates, Inc. ("SIA"), the investment adviser to the Funds and administrator of the Program, provided the Boards with a written report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation during the prior year (the "Report").

The Report described SIA's liquidity classification methodology with respect to the Funds and noted SIA's determination that a Highly Liquid Investment Minimum was not currently necessary for any Fund. The Report also summarized factors considered by SIA in assessing, managing, and periodically reviewing each Fund's Liquidity Risk and the effectiveness of the Program with respect to each Fund. Such information and factors included, among other things: (i) evaluations of each Fund's investment strategy and liquidity of investments during both normal and reasonably foreseeable stressed conditions; (ii) SIA's determination that each Fund's strategy remained appropriate for an open-end mutual fund; (iii) analyses of the Funds' short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions, taking into account each Fund's historical net redemption activity, shareholder ownership concentration, distribution channels and reasonably anticipated trading size; (iv) analyses of each Fund's holdings of cash and cash equivalents, available borrowing arrangements, if any, and other funding sources; (v) that each Fund held primarily highly liquid investments (investments that the Fund anticipates can be converted to cash within 3 business days or less in current market conditions without significantly changing their market value); (vi) that no Fund held more than 3% of its net assets in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment) during normal market conditions; (vii) confirmation that each Fund had complied with the requirements of the Program; and (viii) that the Program had operated adequately and SIA recommended no changes to the Program at that time.

Based on the review, the Report concluded that the Program was operating as intended and is effective in implementing the requirements of the Liquidity Rule.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Funds' prospectuses for more information regarding a Fund's exposure to Liquidity Risk and other risks to which it may be subject.

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **81** |

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------

**ADDITIONAL INFORMATION (Unaudited) (Continued)** 

**RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS** 

At their joint meeting held on October 24, 2022, the Boards of Directors (the "Boards") of Sit Mid Cap Growth Fund, Inc., Sit Large Cap Growth Fund, Inc., Sit International Growth Fund, Sit Balanced Fund, Sit Developing Markets Growth Fund, Sit ESG Growth Fund, Sit Small Cap Growth Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund and Sit Small Cap Dividend Growth Fund (each a "Fund" and collectively, the "Funds") unanimously approved the continuation for another one-year period of the investment management agreements entered into by and between Sit Investment Associates, Inc. ("SIA") and each of Sit Mid Cap Growth Fund, Inc., dated November 1, 1996; Sit Large Cap Growth Fund, Inc., dated November 1, 1996; and Sit Mutual Funds Inc., dated November 1, 1992 (collectively, the "Agreements").

In advance of the October 24, 2022 meeting, the Boards requested and received materials from SIA to assist them in considering the re-approval of the Agreements. The Boards, including all of the Directors who are not "interested persons" (as such term is defined in the Investment Company Act of 1940, as amended (the "1940 Act")) of the Funds (the "non-interested Directors")), approved the Agreements after discussion and consideration of various factors relating to the Boards' selection of SIA as the Funds' investment adviser and the Boards' approval of the fees to be paid under the Agreements. In evaluating the Agreements, the Directors relied upon their knowledge, resulting from their meetings and other interactions throughout the year, of SIA and its services and personnel. The Directors did not consider any single factor as controlling in determining whether to approve the Agreements, and the items described herein are not all-encompassing of the matters considered by the Directors.

Investment Adviser Criteria. The Directors began their analysis by discussing their criteria for determining the quality of an investment adviser. The Directors' noted that their criteria were similar to those used by institutional investors in evaluating and selecting investment advisers. The Directors discussed several factors in assessing the nature, extent and quality of the services performed by SIA, including the following:

Investment Philosophy and Process. The Directors considered SIA's philosophy of managing assets. With respect to equity securities, the Directors noted that SIA seeks to identify growth-oriented securities issued by companies with the potential for earnings growth at a faster rate than the general economy and market indices. The Directors considered SIA's belief that earnings growth is the primary determinant of superior long-term returns for equity securities, and that SIA invests in companies it believes exhibit above-market and consistent growth, as well as conservative and cyclical growth companies. They also considered that SIA's active management style concentrates on the best growth opportunities at reasonable valuation levels. The Directors determined that the Funds' investment objectives are consistent with SIA's investment philosophy and growth style. The Directors reviewed the Funds' portfolio characteristics and noted that SIA consistently managed the Funds in a growth style. The Directors found no indication in reviewing the Funds' portfolio characteristics of style drift away from growth stocks over market cycles. The Directors noted that, in periods during which growth stocks have generally under-performed relative to value stocks, Fund performance may not rank favorably in comparisons with other funds investing in value stocks.

The Directors discussed SIA's consistent and well-defined investment process. With respect to equity securities, the Directors noted that SIA utilizes a team-based, top-down and bottom-up investment decision making process.

Investment Professionals. The Directors discussed the experience, knowledge and organizational stability of SIA and its investment professionals. The Directors noted that SIA's senior professionals are actively involved in the investment process and have significant investment industry experience.

The Directors discussed the depth of SIA's investment staff, noting that SIA has over 30 investment professionals. Given the investment products offered by SIA and SIA's amount of assets under management, the Directors determined that SIA's investment staff is well positioned to meet the current needs of its clients, including the Funds, and to accommodate growth in its number of clients and assets under management for the near future. The Directors concluded that the depth of SIA's investment staff, and in particular senior management and investment analysts, is actually greater than the Funds currently require at their present asset size. The Directors noted that SIA has the resources of an investment firm with over $15.2 billion in assets under management working for the benefit of the Funds' shareholders. The Directors concluded that SIA has substantial resources to provide services to the Funds and that SIA's services had been acceptable.

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| | |
|:---|:---|
| **82** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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------

Investment Performance. The Directors reviewed and discussed the Funds' investment performance on an absolute and comparable basis for various periods as discussed below. The Directors noted that the investment performance of the Funds has generally been competitive with indices and other funds with similar investment styles as the Funds, such as equity growth funds.

Corporate Culture. The Directors discussed SIA's corporate values and commitment to operate under the highest ethical and professional standards. They considered that SIA's culture is set and practiced by senior management of SIA who insist that all SIA professionals exhibit honesty and integrity. The Directors noted that SIA's values are evident in the services it provides to the Funds.

Review of Specific Factors. The Directors continued their analysis by reviewing specific information on SIA and the Funds, and the specific terms of the Agreements, including the following:

Investment Performance. The Directors reviewed the investment performance of each Fund for the 3-month, 6-month, 1-year, 3-year, 5-year, 10-year (as applicable) and since inception periods ended September 30, 2022, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to funds with similar objectives and strategies.

Fees and Expenses. The Directors noted that the Funds pay SIA a monthly fee and SIA is responsible for all of the Funds' expenses, except interest, brokerage commissions and transaction charges, certain extraordinary expenses, and fees paid under a distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act for Class S shares of Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit Small Cap Dividend Growth Fund, and Sit ESG Growth Fund. The Directors reviewed fees paid in prior years and the current fees to be paid under the Agreements both before and after fee waivers with respect to Sit Developing Markets Growth Fund, Sit Dividend Growth Fund, Sit Global Dividend Growth Fund, Sit Small Cap Dividend Growth Fund and Sit ESG Growth Fund.

The Directors compared each Fund's expense ratio to (i) the average and median expense ratios of no-load mutual funds within the same Morningstar, Inc. ("Morningstar") investment category, (ii) the average expense ratio for load funds within the Fund's Morningstar category, and (iii) the average expense ratio for all funds within the Fund's Morningstar category. The Directors also compared each Fund's management fees to (i) the average and median actual management fees of no-load mutual funds within the same Morningstar investment category, (ii) the average actual management fees for load funds within the Fund's Morningstar category, and (iii) the average actual management fees for all funds within the Fund's Morningstar category. Certain of the Fund's expense ratios were higher than the averages, and certain of the Fund's expense ratios were lower than the averages. The Directors noted that the Morningstar no-load categories include funds of various asset sizes, some of which are significantly larger in assets than the Funds. The Directors also noted that unlike other funds within each Fund's Morningstar category, SIA charges a single unified management fee and is responsible for paying all Fund operating expenses. The Directors concluded that the fees paid by the Funds are reasonable and appropriate.

The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund's assets, which included reviewing each Fund's current and historical assets and the likelihood and magnitude of future increases in the Fund's assets. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds' assets increase. However, the Directors concluded that, given the amount of the Funds' current assets and the likelihood and magnitude of future increases in the Funds' assets, a graduated fee structure for each Fund was unnecessary at the time because the fees to be paid under the current Agreements were reasonable and appropriate.

The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA's income with respect to its management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate and that SIA's profit margin with respect to the management of the Funds was acceptable.

The Directors reviewed SIA's investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients of SIA and its affiliates and recognized that the Funds' expenses are borne by SIA except as noted above. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other clients of SIA and its affiliates were appropriate and reasonable.

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| | |
|:---|:---|
| DECEMBER 31, 2022 | **83** |

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------

**ADDITIONAL INFORMATION (Unaudited) (Continued)** 

The Directors discussed the extent to which SIA receives ancillary benefits from its relationship with the Funds, such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Boards concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms, are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable.

Non-Advisory Services. The Directors considered the quality of non-advisory services which SIA provides to the Funds (and their shareholders) and the quality and depth of SIA's non-investment personnel who provide such services. The Directors concluded that the level of such services and the quality and depth of such personnel are acceptable and consistent with industry standards.

Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds and concluded that both are acceptable and consistent with industry standards.

Based on these conclusions, without any single conclusion being dispositive, the Directors, including the non-interested Directors by separate vote, determined that renewal of the Agreements was in the interest of each Fund and its shareholders.

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| | |
|:---|:---|
| **84** | SIT MUTUAL FUNDS SEMI-ANNUAL REPORT |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; Semi-Annual Report<br> **December 31, 2022** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **INVESTMENT ADVISER**<br>Sit Investment Associates, Inc.<br>80 S. Eighth Street<br>Suite 3300<br>Minneapolis, MN 55402 | **INDEPENDENT REGISTERED PUBLIC**<br>**ACCOUNTING FIRM**<br>**KPMG LLP**<br>Minneapolis, MN |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **CUSTODIAN**<br>The Bank Of New York Mellon<br>111 Sanders Creek Parkway<br>Syracuse, NY 13057 | **GENERAL COUNSEL**<br>Faegre Drinker Biddle & Reath LLP<br>Minneapolis, MN |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TRANSFER AGENT AND**<br>**DISBURSING AGENT**<br>BNY Mellon Investment Servicing (US) Inc.<br>4400 Computer Drive<br>Westborough, MA 01581 |  |
| &nbsp;&nbsp; ![LOGO](g445807g00z23.jpg) Sit Mutual Funds |  |
| &nbsp;&nbsp;&nbsp; **1-800-332-5580**<br> **www.sitfunds.com** |  |

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SIT STOCK 12-2022

------

Item 2: Code of Ethics.

Not applicable to Semi-Annual Report.

Item 3: Audit Committee Financial Expert.

Not applicable to Semi-Annual Report.

Item 4: Principal Accountant Fees and Services.

Not applicable to Semi-Annual Report.

Item 5: Audit Committee of Listed Registrants.

Not applicable to open-end investment companies.

Item 6: Schedule of Investments.

The schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8: Portfolio Managers of Closed-End Management Companies.

Not applicable to open-end investment companies.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.

Item 11: Controls and Procedures –

(a) Based on their evaluation of the Registrant's Disclosure Controls and Procedures as of a date within 90 days of the Filing Date, the Registrant's Chairman and Treasurer have determined that the Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to ensure that information required to be disclosed by the Registrant is recorded, processed, summarized and reported by the filing Date, and that information required to be disclosed in the report is communicated to the Registrant's management, as appropriate, to allow timely decisions regarding required disclosure.

b) There were no changes in the Registrant's internal control over financial reporting as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12: Exhibits:

(a) The following exhibits are attached to this Form N-CSR:

[(2) A separate certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2) (certification required by Section 302 of the Sarbanes-Oxley Act of 2002).](d445807dex99cert.htm)

[(b) Certification required by Rule 30a-2(b) under the Act (certification required by Section 906 of the Sarbanes-Oxley Act of 2002).](d445807dex99906cert.htm)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

<u>Sit Large Cap Growth Fund, Inc.</u>

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| | |
|:---|:---|
| By (Signature and Title) | /s/ Paul E. Rasmussen  |
|  | Paul E. Rasmussen |
|  | Vice President, Treasurer |

---

Date February 22, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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| | |
|:---|:---|
| By (Signature and Title) | /s/ Paul E. Rasmussen  |
|  | Paul E. Rasmussen |
|  | Vice President, Treasurer |

---

Date February 22, 2023

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| | |
|:---|:---|
| By (Signature and Title) | /s/ Roger J. Sit  |
|  | Roger J. Sit |
|  | Chairman |

---

Date February 22, 2023

## Ex-99.Cert

FORM N-CSR CERTIFICATION

I, Paul E. Rasmussen, certify that:

1. I have reviewed this report on Form N-CSR of Sit Large Cap Growth Fund,
Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

Date: February 22, 2023

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| |
|:---|
| /s/ Paul E. Rasmussen |
| Signature – Paul E. Rasmussen |
| Vice President Treasurer |

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------

FORM N-CSR CERTIFICATION

I, Roger J. Sit, certify that:

1. I have reviewed this report on Form N-CSR of Sit Large Cap Growth Fund,
Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

Date: February 22, 2023

---

| |
|:---|
| /s/ Roger J. Sit |
| Signature – Roger J. Sit |
| Chairman |

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## Exhibit 99.906

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Sit Large Cap Growth Fund, Inc., do hereby certify, to such officer's knowledge, that the report on Form N-CSR of Sit Large Cap Growth Fund, Inc., for the period ended December 31, 2022 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of Sit Large Cap Growth Fund, Inc. for the periods presented in the report.

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| | |
|:---|:---|
| /s/ Roger J. Sit | /s/ Paul E. Rasmussen |
| Roger J. Sit | Paul E. Rasmussen |
| Chairman | VP, Treasurer |
| Sit Large Cap Growth Fund, Inc. | Sit Large Cap Growth Fund, Inc. |

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Dated: February 22, 2023

A signed original of this written statement required by Section 906 has been provided by Sit Large Cap Growth Fund, Inc. and will be retained by Sit Large Cap Growth Fund, Inc. and furnished to the SEC or its staff upon request.