# EDGAR Filing Document

**Accession Number:** 0000746601
**File Stem:** 0000356787-23-000028
**Filing Date:** 2023-3
**Character Count:** 17356
**Document Hash:** adc66f9fb51edeb8a5366d254499fe97
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000356787-23-000028.hdr.sgml**: 20230323

**ACCESSION NUMBER**: 0000356787-23-000028

**CONFORMED SUBMISSION TYPE**: 40-24B2

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20230323

**DATE AS OF CHANGE**: 20230323

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIT MID CAP GROWTH FUND INC
- **CENTRAL INDEX KEY:** 0000356787
- **IRS NUMBER:** 411414580
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 40-24B2
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03342
- **FILM NUMBER:** 23755146

**BUSINESS ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 S 8TH ST
- **STREET 2:** 3300 IDS CTR, 80 S 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402-4130
- **BUSINESS PHONE:** 612-332-32

**MAIL ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 S 8TH ST
- **STREET 2:** 3300 IDS CTR, 80 S 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402-4130

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT NEW BEGINNING GROWTH & INCOME FUND INC
- **DATE OF NAME CHANGE:** 19930923

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

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIT MUTUAL FUNDS INC
- **CENTRAL INDEX KEY:** 0000877880
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 40-24B2
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-06373
- **FILM NUMBER:** 23755149

**BUSINESS ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 SOUTH 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402-4130
- **BUSINESS PHONE:** 612-332-3223

**MAIL ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 SOUTH 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402-4130

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT NEW BEGINNING MUTUAL FUNDS INC
- **DATE OF NAME CHANGE:** 19920929
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIT U S GOVERNMENT SECURITIES FUND INC
- **CENTRAL INDEX KEY:** 0000809981
- **IRS NUMBER:** 411570831
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 40-24B2
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04995
- **FILM NUMBER:** 23755148

**BUSINESS ADDRESS:**
- **STREET 1:** 3300 IDS CTR 80 S 8TH ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402
- **BUSINESS PHONE:** 6123323223

**MAIL ADDRESS:**
- **STREET 1:** 3300 IDS CENTER, 80 SOUTH EIGHTH  ST
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402-4130

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT NEW BEGINNING U S GOVERNMENT SECURITIES FUND INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NEW BEGINNING U S GOVERNMENT SECURITIES FUND INC
- **DATE OF NAME CHANGE:** 19870601
**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:** 40-24B2
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-03343
- **FILM NUMBER:** 23755150

**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
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIT MUTUAL FUNDS II INC
- **CENTRAL INDEX KEY:** 0000746601
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 40-24B2
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-04033
- **FILM NUMBER:** 23755147

**BUSINESS ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 S. 8TH STREET
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402
- **BUSINESS PHONE:** 612-332-3223

**MAIL ADDRESS:**
- **STREET 1:** 3300 IDS CTR, 80 S. 8TH STREET
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT NEW BEGINNING TAX FREE INCOME FUND INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIT NEW BEGINNING YIELD FUND INC
- **DATE OF NAME CHANGE:** 19880929

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

### Attached PDF Documents

**Attachment 1:** `SitFundWebsiteArticle32323.pdf`

Sit Mutual Funds

Print

Mutual Funds
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FAD FRANCE | CUBI | PNCUE | ALEXANDER ALESSES | NATURE | FUND PERFORMANCE | CORNER LYS

## Why the Federal Reserve should cut interest rates

by Alison Stacy, CPA - former Vice President and Senior Portfolio Manager, Sit Mutual Income
March 25, 2023

The much-finder revenue (ML) reflects continued with widespread global confidence designed for 'highly attractive balance'. No much interest compared to recovery by reducing the percentage of the population with growing to work which further takes advantage in the future.

A fiscal solution was made to solve the core course of supply shortage-related inflation. Specifically, legislation has focused on monitoring people to work and for businesses in the shortfall of the financial crisis in the past.

In the absence of a fiscal solution, the Federal Reserve took it upon itself to obtain inflation. However, the first year recovery costs gained toward impacting the demand side of inflation.

Unlike equity, the Federal Reserve was the best to recognize inflation was more than just inventory. Its method of solving ultra-violet, semi-violet, and moving control of the inflation effect. The economy that improved the Paid debt for the past year and its effect on the future was not a result of inflation that surpassed 7%.

The Federal Reserve increased interest rates higher and faster in 2022 than ever before, creating the greatest decline in value of all loans and bonds. By far

The Banking Aggregate Board rates had a total return of negative 10% compared to its previous recent year of down 5%. But it's now relevant to focus on just the 10% drop in the average year of banks in 2022, so this determines the method that is later taken as a 1% to its capitalizing if it ends a loss to raise cash.

As banks are required to look, all of banks' assets are transferable.

## Disintermediation

Modern day banks are structured to have roughly 8% of capitalization. So, if 3.5% of their assets declined 25% in value, you better hope people don't ask for more money than the bank has on hand or they will need to sell assets to raise cash and make money, which chips away at their capital value.

While assets are worth less than liabilities, the bank has negative net assets and is technically incorrect.

Yesterday, over 20% of banks in the Fed moved after the financial crisis of 2008 was a result of the improvement of banks to constantly market small assets while still being required to meet regulatory capital requirements.

Regardless, today's banks rely in very small amount of assets to be able to sell large banks for a bank to benefit its regulatory capital requirement and be indirectly regulated.

Dollars money markets were a thing, so time passed, lower interest rate loans were paid off and banks to be money at higher rates and life pass on.

Unlike equity, the Fed set up a way for money market funds to benefit their government guaranteed short-term interest rates and by the Fed itself.

For technical reasons, the Fed asks the a reverse repo facility. While the banks were originally only meant to be used in an emergency, you can imagine how people live in for money market funds, given the government guarantee, create liquidity, and subscribe less currently out at 4.5% with zero risk to the price of their investment (i.e., zero transfers).

This reverse repo facility and a loan secured two years ago to new banking over 80 billion.

'Disintermediation' advice has into every banks as it refers to people taking their cash out of a bank to earn a higher rate somewhere else.

Generally, it only occurs when interest rates rise rapidly and banks assets will generate loans in fund. Banks tend to keep deposit rates low initially to maintain a positive spread between the bank's accounts, are paying them on loans made at only low interest rates and the net debt pay on deposits.

Over the year selling goods of rate increases in the past year, the pay between other can be earned in a money market fund versus a savings account has probably never been longer if something doesn't change more. One will not have a longer rating.

Most banks feel the Fed is simply supposed to try and maintain full employment and stable prices, but the Federal Reserve was originally set up to do much more than that including:

- Supremacy and regulatory banks and other important financial institutions to ensure the safety and usefulness of the nation's banking and financial systems and to protect the small rights of consumers.
- Monitoring the stability of the financial system and containing systems risk that may arise in financial markets.

So, while Congress is clearly to blame for spotting rampant inflation, it is worth asking why members of the Fed are acting like a bunch of nations that need to make a 'Money and Banking' move.

## Liquidity solutions

Typically, how virtually cause banks to fail. Today, details are very low if banks didn't have to sell assets at a loss, there wouldn't be a problem.

So it's understandable that the FDC, U.S. Treasury, Federal Reserve, and other banking regulators have spent the last week scrambling to find solutions that provide enough liquidity for banks to make demand from customers taking out their cash.

The banking sector recognizes the fall threat of what is happening even more so than regulators at the moment. A group of banks get together to give Free Eligibility (from $33 billion in cash because they realize the dangerous contagion from a segment bank failing).

Banks issue bonds. The bonds are investment grade and typically considered relatively low risk bonds.

However, the FDC's most recent rate increases both caused both assets to become worth less than their liabilities and accelerated the flight of deposits out of banks and into other higher growing options.

As a result, if a bank is second today and its assets are sold to make depositors whole, there will be nothing left for bankfeights.

Just from regional banks, the sidewalks of all regional banks will go to zero, not to mention what will happen to above. Conservative high-quality bank bonds are owned by other banks, insurance companies, pension plans, restaurants, etc., so the impact would be widespread.

Banks would effectively in charge be able access either the stock or the bond market to have additional money. Net because anyone obfuscated on their loans, that because the Fed refused more funds from capacity.

Just to what else?

Yes can argue that the Fed made more things more expensive, such as the cost to buy a home or car. Higher rates intended to crush demand made it more expensive for companies to fund monetary and obtain new materials.

Higher interest rates certainly made it more difficult for companies to be able to face desperately needed barriers that could help reduce supply driven inflation.

## Liquidity solutions are short-lived

The problem with other liquidity solutions are that they cause banks to stop holding as they consume cash.

The $33 billion rate on Free Eligibility is $33 billion no longer available to banks in businesses and individuals. More than while banks were 'summarizing the debt chain on the 'bancs,' $33 billion the banks' new money market funds, more of which presumably given the money system's.

Banks are not large as do money to be a better evidence for thinking soon. They are required to lend money to maintain a relevant and healthy recovery. A 'simple sound' is what happens when banks are no longer willing or able to lend.

Surveys of partners have probably driven their willingness to lend has been declining rapidly over the past six months and resulted dangerously low levels even before last week.

Without banks being made, the banking crisis becomes a crisis for the whole country and economy. Not as severe as 2008, of course, but still a condition and easily avoidable huge gain in the next.

## Solution

Some are short-lived in every about defaulting loans, the only issue are the unresolved issues of bank assets. As let's not mean banks sell assets, ensure they continue to lend, and make banks solvent again.

One of the few emergency measures that worked quite well during the 2008 crisis was the ability of banks to issue bonds up to three years in maturity with a government guarantee. This provided equal liquidity for banks.

They were able to keep lending again and next a healthy interest margin on new loans given the low cost of banking as far spread on a government guaranteed bond to jump low.

This would bring down fixed spreads across all sectors including mortgage banks, in turn, to reverse the market value of all beneficiaries.

To reduce costs to market losses even further, the Fed can cut rates and immediately remove some of the damage.

The Fed could also reduce the amount money market funds can earn on the reverse repo facility to book C2 rates took more attention which will help banks retain deposits.

After these solutions are announced, stock prices would partially recover and allow many banks the opportunity to raise more capital.

## Lessons learned

Identities of the Fed decided the wrong decision that disorderly focusing on the 10% when they said 'If money has taught us anything, it's to cut let up too soon on inflation.'

What they should have been away from that free period (that has so little to do with a pandemic and labor shortages) was understanding why the Fed needed to pause them in volume to maintain a healthy banking system.

The end means to that it is so hard to stuff the inflation game back into the bullet that you don't ever want to let it up in the first place.

That's why governments generally avoid damaging inflation of dollars on people to spend without them having any additional goods or services to spend them on because all it does to make the existing goods and services more expensive, which leads to a myriad of other problems.

Bills 833 (FMC) Limited | 1000000000 | Copyright 1997 | 2023 Fid Investment Association, Inc.

Name | Description | Citations | Terms of Use | Shares | Date

Carefully consider the Fund's investment objectives, risks, charges and expenses before investing. The prospectus carefully link with other important Fund information and may be obtained by contacting the Fid Investment Association for details. Note that the Fid Investment Association provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to

The central banks in the Fed business operation and without regard to capitalization, are not a result of the Fid Investment Association. But definitions of financial situation and does not constitute investment advice, but should not be introduced to investment in offering to sell securities or at interest in any fund.

Carefully and recommend of financial matters that the Fid Investment Association provides a prospectus for judgment and are subject to change without notice. We believe the information contained in this report is reliable and will not be construed as a material or material investment advice. The Fid Investment Association provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available to the Fid Investment Association and provides the information that is available