UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-04033

Sit Mutual Funds II, Inc.

(Exact name of Registrant as specified in charter)

3300 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

(Address of principal executive offices)

Paul E. Rasmussen, VP

Sit Mutual Funds

3300 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

(Name and address of agent for service)

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

Date of fiscal year end: March 31, 2025

Date of reporting period: March 31, 2025

Item 1: Reports to Stockholders.

Class S - SQIFX

Sit Quality Income Fund

Annual Shareholder Report

March 31, 2025

Fund Overview

This annual shareholder report contains important information about Sit Quality Income Fund for the period of April 1, 2024 to March 31, 2025. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580. 

What were the Fund’s costs for the last year? 

(based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit Quality Income Fund - Class S	$82	0.80%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2025, the Sit Quality Income Fund - Class S returned +5.66%, outperforming the Bloomberg U.S. 1-3 Year Gov't/Credit Index's return of +5.61%. The Federal Reserve reduced short-term interest rates by 1.00% which caused the yield curve to steepen and prices on shorter term securities to increase. The Fund benefited from a strong income advantage relative to the benchmark and was the primary source of outperformance. The Fund’s allocation to corporate bonds outperformed as the duration of those securities were generally longer than the benchmark and spreads narrowed causing prices to increase. The Fund reduces interest rate risk by using futures and options on Treasury securities. The use of futures and options was effective in providing stability to the Fund’s net asset value but detracted from overall performance.

How did the Fund perform over the last 10 years? 

Total Return Based on $10,000 Investment 

	Sit Quality Income Fund - Class S	Bloomberg U.S. Aggregate Bond Index	Bloomberg 1 - 3 Year Government/Credit Index
3/15	$10,000	$10,000	$10,000
4/15	10,008	9,964	10,008
5/15	9,995	9,940	10,017
6/15	10,000	9,832	10,014
7/15	9,998	9,900	10,020
8/15	9,997	9,886	10,013
9/15	9,984	9,953	10,043
10/15	9,973	9,954	10,040
11/15	9,980	9,928	10,020
12/15	9,978	9,896	10,007
1/16	9,965	10,032	10,059
2/16	9,974	10,103	10,068
3/16	9,990	10,196	10,104
4/16	10,008	10,235	10,118
5/16	10,026	10,238	10,111
6/16	10,025	10,422	10,172
7/16	10,042	10,488	10,174
8/16	10,062	10,476	10,163
9/16	10,067	10,470	10,175
10/16	10,074	10,389	10,171
11/16	10,050	10,144	10,129
12/16	10,057	10,158	10,135
1/17	10,075	10,178	10,154
2/17	10,073	10,246	10,171
3/17	10,081	10,241	10,176
4/17	10,100	10,320	10,195
5/17	10,121	10,399	10,212
6/17	10,131	10,389	10,208
7/17	10,132	10,434	10,234
8/17	10,152	10,527	10,255
9/17	10,152	10,477	10,242
10/17	10,162	10,483	10,239
11/17	10,163	10,470	10,217
12/17	10,174	10,518	10,221
1/18	10,166	10,397	10,193
2/18	10,158	10,298	10,184
3/18	10,161	10,364	10,200
4/18	10,165	10,287	10,190
5/18	10,179	10,360	10,228
6/18	10,184	10,348	10,229
7/18	10,202	10,350	10,234
8/18	10,228	10,417	10,270
9/18	10,244	10,350	10,263
10/18	10,241	10,268	10,274
11/18	10,259	10,329	10,304
12/18	10,265	10,519	10,384
1/19	10,294	10,631	10,425
2/19	10,332	10,625	10,441
3/19	10,381	10,829	10,509
4/19	10,410	10,831	10,533
5/19	10,419	11,024	10,606
6/19	10,456	11,162	10,665
7/19	10,465	11,187	10,659
8/19	10,524	11,476	10,745
9/19	10,531	11,415	10,739
10/19	10,557	11,450	10,777
11/19	10,571	11,444	10,776
12/19	10,586	11,436	10,802
1/20	10,654	11,656	10,862
2/20	10,721	11,866	10,951
3/20	10,592	11,796	10,985
4/20	10,668	12,006	11,054
5/20	10,700	12,061	11,091
6/20	10,753	12,138	11,114
7/20	10,784	12,319	11,134
8/20	10,806	12,219	11,138
9/20	10,817	12,213	11,139
10/20	10,806	12,158	11,141
11/20	10,860	12,277	11,152
12/20	10,900	12,294	11,163
1/21	10,926	12,206	11,166
2/21	10,933	12,030	11,163
3/21	10,944	11,880	11,158
4/21	10,978	11,974	11,166
5/21	10,991	12,013	11,180
6/21	11,033	12,097	11,163
7/21	11,050	12,232	11,182
8/21	11,061	12,209	11,182
9/21	11,061	12,103	11,173
10/21	11,075	12,100	11,136
11/21	11,071	12,136	11,127
12/21	11,060	12,105	11,110
1/22	11,050	11,844	11,030
2/22	11,079	11,712	10,982
3/22	11,045	11,386	10,833
4/22	10,976	10,954	10,775
5/22	10,994	11,025	10,841
6/22	10,987	10,852	10,765
7/22	11,022	11,117	10,821
8/22	10,959	10,803	10,737
9/22	10,829	10,336	10,606
10/22	10,796	10,202	10,593
11/22	10,866	10,578	10,680
12/22	10,876	10,530	10,700
1/23	10,989	10,854	10,786
2/23	10,926	10,573	10,706
3/23	11,004	10,842	10,862
4/23	11,045	10,908	10,899
5/23	11,020	10,789	10,865
6/23	11,018	10,750	10,821
7/23	11,054	10,743	10,867
8/23	11,066	10,674	10,905
9/23	11,030	10,403	10,900
10/23	11,023	10,239	10,934
11/23	11,194	10,702	11,062
12/23	11,351	11,112	11,194
1/24	11,382	11,082	11,237
2/24	11,386	10,925	11,196
3/24	11,450	11,026	11,241
4/24	11,393	10,747	11,203
5/24	11,483	10,930	11,285
6/24	11,558	11,033	11,348
7/24	11,688	11,291	11,483
8/24	11,803	11,453	11,587
9/24	11,919	11,606	11,684
10/24	11,788	11,319	11,617
11/24	11,866	11,438	11,656
12/24	11,834	11,251	11,681
1/25	11,902	11,311	11,735
2/25	12,056	11,560	11,817
3/25	12,099	11,564	11,871

The Fund continues to use the Bloomberg 1-3 Year Government/Credit Bond Index as an additional benchmark. 

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/25)

	1 Year	5 Years	10 Years
Sit Quality Income Fund - Class S	5.66%	2.69%	1.92%
Bloomberg U.S. Aggregate Bond Index	4.88%	-0.40%	1.46%
Bloomberg 1 - 3 Year Government/Credit Index	5.61%	1.56%	1.73%

What did the Fund invest in? 

The Fund primarily invested in debt securities issued by the U.S. government, its agencies, and corporations, alongside mortgage and asset-backed securities. The tables reflect the investment makeup of the Fund as of March 31, 2025.  Portfolio holdings are subject to change. 

Fund Statistics (as of 03/31/25)

Total Net Assets	$135,566,167
# of Portfolio Holdings	172
Portfolio Turnover Rate	59.03%
Investment Advisory Fees Paid	$256,860
Average Maturity	18.8 Years
Effective DurationFootnote Reference1	2.7 Years

Footnote

Description

Footnote1

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Quality Ratings (% of Net Assets)

Govt. /Agency	53.4%
AAA	19.9
AA	10.2
A	7.2
BBB	6.8
Other Assets & liabilities	2.5
Total	100.0%

Portfolio Composition (% of Net Assets)

U.S. Treasury / Federal Agency Securities	30.4%
Mortgage Pass-Through Securities	23.0
Taxable Municipal Bonds	16.6
Corporate Bonds	14.2
Collateralized Mortgage Obligations - Non Agency	10.2
Asset-Backed Securities - Non Agency	3.1
Cash & Other Net Assets	2.5
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2025.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information. 

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

Class S - SQIFX

Sit Quality Income Fund

Annual Shareholder Report

March 31, 2025

Class Y - SQIYX

Sit Quality Income Fund

Annual Shareholder Report

March 31, 2025

Fund Overview

This annual shareholder report contains important information about Sit Quality Income Fund for the period of April 1, 2024 to March 31, 2025. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580. 

What were the Fund’s costs for the last year? 

(based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit Quality Income Fund - Class Y	$57	0.55%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2025, the Sit Quality Income Fund - Class Y returned +5.82%, outperforming the Bloomberg U.S. 1-3 Year Gov't/Credit Index's return of +5.61%. The Federal Reserve reduced short-term interest rates by 1.00% which caused the yield curve to steepen and prices on shorter term securities to increase. The Fund benefited from a strong income advantage relative to the benchmark and was the primary source of outperformance. The Fund’s allocation to corporate bonds outperformed as the duration of those securities were generally longer than the benchmark and spreads narrowed causing prices to increase. The Fund reduces interest rate risk by using futures and options on Treasury securities. The use of futures and options was effective in providing stability to the Fund’s net asset value but detracted from overall performance.

How did the Fund perform over the last 10 years? 

Total Return Based on $10,000 Investment 

	Sit Quality Income Fund - Class Y	Bloomberg U.S. Aggregate Bond Index	Bloomberg 1 - 3 Year Government/Credit Index
4/22	10,000	10,000	9,946
5/22	9,970	9,683	10,007
6/22	9,955	9,531	9,937
7/22	9,989	9,764	9,989
8/22	9,934	9,488	9,911
9/22	9,829	9,078	9,790
10/22	9,790	8,960	9,778
11/22	9,856	9,290	9,858
12/22	9,867	9,248	9,877
1/23	9,971	9,532	9,957
2/23	9,916	9,286	9,882
3/23	9,990	9,522	10,026
4/23	10,028	9,579	10,061
5/23	10,008	9,475	10,030
6/23	10,019	9,441	9,989
7/23	10,043	9,435	10,031
8/23	10,067	9,374	10,066
9/23	10,026	9,136	10,062
10/23	10,032	8,992	10,093
11/23	10,189	9,399	10,211
12/23	10,323	9,759	10,333
1/24	10,354	9,732	10,373
2/24	10,359	9,595	10,335
3/24	10,431	9,683	10,376
4/24	10,382	9,439	10,342
5/24	10,455	9,599	10,417
6/24	10,525	9,690	10,475
7/24	10,657	9,916	10,599
8/24	10,763	10,058	10,696
9/24	10,861	10,193	10,785
10/24	10,744	9,940	10,724
11/24	10,828	10,045	10,760
12/24	10,802	9,881	10,783
1/25	10,854	9,933	10,832
2/25	11,008	10,152	10,908
3/25	11,038	10,156	10,958

The Fund continues to use the Bloomberg 1-3 Year Government/Credit Bond Index as an additional benchmark. 

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/25)

	1 Year	Since Inception 4/1/2022
Sit Quality Income Fund - Class Y	5.82%	3.34%
Bloomberg U.S. Aggregate Bond Index	4.88%	0.52%
Bloomberg 1 - 3 Year Government/Credit Index	5.61%	3.09%

What did the Fund invest in? 

The Fund primarily invested in debt securities issued by the U.S. government, its agencies, and corporations, alongside mortgage and asset-backed securities. The tables reflect the investment makeup of the Fund as of March 31, 2025.  Portfolio holdings are subject to change. 

Fund Statistics (as of 03/31/25)

Total Net Assets	$135,566,167
# of Portfolio Holdings	172
Portfolio Turnover Rate	59.03%
Investment Advisory Fees Paid	$256,860
Average Maturity	18.8 Years
Effective DurationFootnote Reference1	2.7 Years

Footnote

Description

Footnote1

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Quality Ratings (% of Net Assets)

Govt. /Agency	53.4%
AAA	19.9
AA	10.2
A	7.2
BBB	6.8
Other Assets & liabilities	2.5
Total	100.0%

Portfolio Composition (% of Net Assets)

U.S. Treasury / Federal Agency Securities	30.4%
Mortgage Pass-Through Securities	23.0
Taxable Municipal Bonds	16.6
Corporate Bonds	14.2
Collateralized Mortgage Obligations - Non Agency	10.2
Asset-Backed Securities - Non Agency	3.1
Cash & Other Net Assets	2.5
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2025.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information. 

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

Class Y - SQIYX

Sit Quality Income Fund

Annual Shareholder Report

March 31, 2025

Class S - SNTIX

Sit Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

Fund Overview

This annual shareholder report contains important information about Sit Tax-Free Income Fund for the period of April 1, 2024 to March 31, 2025. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580. 

What were the Fund’s costs for the last year? 

(based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit Tax-Free Income Fund - Class S	$81	0.80%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2025, the Sit Tax-Free Income Fund - Class S returned +3.03%, outperforming the Bloomberg 5-Year Municipal Bond Index's return of +2.47%. Both the U.S. Treasury and municipal yield curves steepened with yields on long bonds backing up 25 and 55 basis points respectively. As such, shorter and intermediate duration bonds generally outperformed longer bonds. Thus, the Fund was disadvantaged by a larger weighting of long duration bonds versus the benchmark, somewhat offset by its hedge in U.S. Treasury futures. Lower credit quality performed better so the Fund benefited from exposure to BBB-rated and below investment grade bonds as well as its significant allocation to non-rated bonds. From a sector perspective, the Fund’s overweight in multi-family housing bonds, with a large concentration in senior living, and other revenue bonds including land secured, strongly outperformed. Conversely, the Fund’s significant weighting in single-family mortgage revenue bonds lagged the benchmark.

How did the Fund perform over the last 10 years? 

Total Return Based on $10,000 Investment 

	Sit Tax-Free Income Fund - Class S	Bloomberg Municipal Bond Index	Bloomberg 5-Year Municipal Bond Index
3/15	$10,000	$10,000	$10,000
3/16	10,478	10,398	10,282
3/17	10,517	10,414	10,318
3/18	11,147	10,690	10,385
3/19	11,557	11,266	10,844
3/20	11,749	11,700	11,082
3/21	12,540	12,344	11,644
3/22	11,960	11,793	11,122
3/23	11,462	11,823	11,317
3/24	12,021	12,193	11,538
3/25	12,385	12,341	11,823

The Fund continues to use the Bloomberg 5-Year Municipal Bond Index as an additional benchmark. 

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/25)

	1 Year	5 Years	10 Years
Sit Tax-Free Income Fund - Class S	3.03%	1.06%	2.16%
Bloomberg Municipal Bond Index	1.22%	1.07%	2.13%
Bloomberg 5-Year Municipal Bond Index	2.47%	1.30%	1.69%

What did the Fund invest in? 

The Fund primarily invested in municipal securities, offering interest income exempt from federal regular income tax and alternative minimum tax. The tables reflect the investment makeup of the Fund as of March 31, 2025. Portfolio holdings are subject to change.

Fund Statistics (as of 03/31/25)

Total Net Assets	$156,025,947
# of Portfolio Holdings	350
Portfolio Turnover Rate	26.81%
Investment Advisory Fees Paid	$320,223
Average Maturity	20.4 Years
Effective DurationFootnote Reference1	5.8 Years

Footnote

Description

Footnote1

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Quality Ratings (% of Net Assets)

AAA	14.6%
AA	34.7
A	10.5
BBB	4.6
Less Than BBB	0.9
Not Rated	27.5
Other Assets & liabilities	7.2
Total	100.0%

Adviser’s Assessment of Non-Rated Securities

AA	0.3%
BBB	3.3
BB	18.1
< BB	5.8
Total	27.5%

Portfolio composition

Single Family Mortgage	40.9%
Other Revenue Bonds	20.1
Multifamily Mortgage	9.7
Education/Student Loan	5.0
Sectors less than 5%	17.1
Cash & Other Net Assets	7.2
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2025.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information. 

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

Class S - SNTIX

Sit Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

Class Y - SNTYX

Sit Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

Fund Overview

This annual shareholder report contains important information about Sit Tax-Free Income Fund for the period of April 1, 2024 to March 31, 2025. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580. 

What were the Fund’s costs for the last year? 

(based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit Tax-Free Income Fund - Class Y	$56	0.55%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2025, the Sit Tax-Free Income Fund - Class Y returned +3.29%, outperforming the Bloomberg 5-Year Municipal Bond Index's return of +2.47%. Both the U.S. Treasury and municipal yield curves steepened with yields on long bonds backing up 25 and 55 basis points respectively. As such, shorter and intermediate duration bonds generally outperformed longer bonds. Thus, the Fund was disadvantaged by a larger weighting of long duration bonds versus the benchmark, somewhat offset by its hedge in U.S. Treasury futures. Lower credit quality performed better so the Fund benefited from exposure to BBB-rated and below investment grade bonds as well as its significant allocation to non-rated bonds. From a sector perspective, the Fund’s overweight in multi-family housing bonds, with a large concentration in senior living, and other revenue bonds including land secured, strongly outperformed. Conversely, the Fund’s significant weighting in single-family mortgage revenue bonds lagged the benchmark.

How did the Fund perform over the last 10 years? 

Total Return Based on $10,000 Investment 

	Sit Tax-Free Income Fund - Class Y	Bloomberg Municipal Bond Index	Bloomberg 5-Year Municipal Bond Index
6/21	10,046	10,027	10,002
7/21	10,109	10,111	10,067
8/21	10,095	10,074	10,061
9/21	10,008	10,001	10,015
10/21	10,001	9,972	9,986
11/21	10,109	10,056	10,006
12/21	10,143	10,073	10,019
1/22	9,843	9,797	9,776
2/22	9,765	9,762	9,737
3/22	9,394	9,445	9,508
4/22	9,020	9,184	9,351
5/22	9,139	9,321	9,497
6/22	8,844	9,168	9,468
7/22	9,063	9,410	9,640
8/22	8,935	9,204	9,477
9/22	8,597	8,851	9,211
10/22	8,508	8,777	9,191
11/22	8,856	9,188	9,449
12/22	8,863	9,214	9,492
1/23	9,121	9,479	9,684
2/23	8,956	9,264	9,495
3/23	9,025	9,470	9,675
4/23	9,007	9,448	9,631
5/23	9,017	9,366	9,538
6/23	9,148	9,460	9,605
7/23	9,165	9,498	9,635
8/23	9,011	9,361	9,570
9/23	8,748	9,086	9,410
10/23	8,615	9,009	9,396
11/23	9,130	9,581	9,752
12/23	9,330	9,804	9,901
1/24	9,373	9,754	9,869
2/24	9,465	9,766	9,876
3/24	9,489	9,766	9,864
4/24	9,396	9,645	9,783
5/24	9,428	9,617	9,720
6/24	9,642	9,764	9,822
7/24	9,721	9,853	9,923
8/24	9,772	9,931	10,051
9/24	9,926	10,029	10,121
10/24	9,821	9,883	10,016
11/24	9,996	10,053	10,091
12/24	9,849	9,907	10,016
1/25	9,870	9,957	10,080
2/25	10,001	10,055	10,167
3/25	9,801	9,885	10,108

The Fund continues to use the Bloomberg 5-Year Municipal Bond Index as an additional benchmark. 

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/25)

	1 Year	Since Inception 6/1/2021
Sit Tax-Free Income Fund - Class Y	3.29%	-0.52%
Bloomberg Municipal Bond Index	1.22%	-0.30%
Bloomberg 5-Year Municipal Bond Index	2.47%	0.28%

What did the Fund invest in? 

The Fund primarily invested in municipal securities, offering interest income exempt from federal regular income tax and alternative minimum tax. The tables reflect the investment makeup of the Fund as of March 31, 2025. Portfolio holdings are subject to change.

Fund Statistics (as of 03/31/25)

Total Net Assets	$156,025,947
# of Portfolio Holdings	350
Portfolio Turnover Rate	26.81%
Investment Advisory Fees Paid	$320,223
Average Maturity	20.4 Years
Effective DurationFootnote Reference1	5.8 Years

Footnote

Description

Footnote1

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Quality Ratings (% of Net Assets)

AAA	14.6%
AA	34.7
A	10.5
BBB	4.6
Less Than BBB	0.9
Not Rated	27.5
Other Assets & liabilities	7.2
Total	100.0%

Adviser’s Assessment of Non-Rated Securities

AA	0.3%
BBB	3.3
BB	18.1
< BB	5.8
Total	27.5%

Portfolio composition

Single Family Mortgage	40.9%
Other Revenue Bonds	20.1
Multifamily Mortgage	9.7
Education/Student Loan	5.0
Sectors less than 5%	17.1
Cash & Other Net Assets	7.2
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2025.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information. 

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

Class Y - SNTYX

Sit Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

SMTFX

Sit Minnesota Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

Fund Overview

This annual shareholder report contains important information about Sit Minnesota Tax-Free Income Fund for the period of April 1, 2024 to March 31, 2025. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580. 

What were the Fund’s costs for the last year? 

(based on a hypothetical $10,000 investment)

Fund Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit Minnesota Tax-Free Income Fund	$80	0.80%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2025, the Sit MN Tax-Free Income Fund returned +1.24%, underperforming the Bloomberg 5-Year Municipal Bond Index's return of +2.47%. Both the U.S. Treasury and municipal yield curves steepened during the period with yields on long bonds backing up 25 and 55 basis points respectively. As such, shorter and intermediate duration bonds generally outperformed longer bonds. Thus, the Fund was disadvantaged by a larger weighting of long duration bonds versus the benchmark, somewhat offset by the Fund’s hedge in U.S. Treasury futures. Lower credit quality performed better so the Fund benefited from its exposure to BBB-rated and below investment grade bonds as well as its significant allocation to non-rated bonds. From a sector perspective, the Fund’s overweight in multi-family housing bonds, with a large concentration in senior living, strongly outperformed while its significant weighting in single-family mortgage revenue bonds lagged the benchmark.

How did the Fund perform over the last 10 years? 

Total Return Based on $10,000 Investment 

	Sit Minnesota Tax-Free Income Fund	Bloomberg Municipal Bond Index	Bloomberg 5-Year Municipal Bond Index
3/15	$10,000	$10,000	$10,000
3/16	10,389	10,398	10,282
3/17	10,368	10,414	10,318
3/18	10,792	10,690	10,385
3/19	11,240	11,266	10,844
3/20	11,428	11,700	11,082
3/21	12,107	12,344	11,644
3/22	11,554	11,793	11,122
3/23	11,314	11,823	11,317
3/24	11,725	12,193	11,538
3/25	11,870	12,341	11,823

The Fund continues to use the Bloomberg 5-Year Municipal Bond Index as an additional benchmark. 

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/25)

	1 Year	5 Years	10 Years
Sit Minnesota Tax-Free Income Fund	1.24%	0.76%	1.73%
Bloomberg Municipal Bond Index	1.22%	1.07%	2.13%
Bloomberg 5-Year Municipal Bond Index	2.47%	1.30%	1.69%

What did the Fund invest in? 

The Fund primarily invested in municipal securities, offering interest income exempt from federal regular income tax and Minnesota regular personal income tax. The tables reflect the investment makeup of the Fund as of March 31, 2025.  Portfolio holdings are subject to change. 

Fund Statistics (as of 03/31/25)

Total Net Assets	$389,329,774
# of Portfolio Holdings	272
Portfolio Turnover Rate	10.29%
Investment Advisory Fees Paid	$797,437
Average Maturity	16.2 Years
Effective DurationFootnote Reference1	6.0 Years

Footnote

Description

Footnote1

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Quality Ratings (% of Net Assets)

AAA	9.9%
AA	33.1
A	14.2
BBB	5.8
Less Than BBB	9.3
Not Rated	22.7
Other Assets & liabilities	5.0
Total	100.0%

Adviser’s Assessment of Non-Rated Securities

A	0.9%
BBB	6.6
BB	13.4
< BB	1.8
Total	22.7%

Portfolio composition

Single Family Mortgage	22.1%
Multifamily Mortgage	21.0
Education/Student Loan	16.9
Hospital/Health Care	14.4
General Obligation	8.9
Sectors less than 5%	10.9
Cash & Other Net Assets	5.8
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2025.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information. 

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

SMTFX

Sit Minnesota Tax-Free Income Fund

Annual Shareholder Report

March 31, 2025

Item 2: Code of Ethics.

The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. The Registrant has not made any amendment to its code of ethics during the period covered by this report which must be described herein pursuant to Item 2. The Registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.

A copy of the Registrant’s code of ethics is available without charge upon request by calling the Registrant at 612-332-3223 or 1-800-332-5580, or by mail at Sit Mutual Funds, 3300 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402.

Item 3: Audit Committee Financial Expert.

The Registrant’s Board of Directors has determined that Mr. Edward M. Giles, Mr. Sidney L. Jones, Mr. Bruce C. Lueck, Mr. Donald W. Phillips, and Mr. Barry N. Winslow are audit committee financial experts serving on its audit committee. Mr. Giles, Mr. Jones, Mr. Lueck, Mr. Phillips, and Mr. Winslow are independent for purposes of this Item.

Item 4: Principal Accountant Fees and Services.

a) – (d) Aggregate fees billed to the Registrant for the last two fiscal years for professional services rendered by the Registrant’s principal accountant were as follows:

	Audit Fees (a)		Audit Related Fees (b)		Tax Fees (c)		All Other Fees (d)
Fiscal year ended March 31, 2025	$	86,000		0	$	18,510		0
Fiscal year ended March 31, 2024	$	82,700		0	$	17,805		0

Item 5: Audit Committee of Listed Registrants.

Not applicable to open-end investment companies.

Item 6: Investments.

(a) The schedule of investments is included as part of the material filed under Item 7 of this Form.

(b) Not applicable.

Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.

Financial Statements and Other Information March 31, 2025 U.S. Government Securities Fund Quality Income Fund Tax-Free Income Fund Minnesota Tax-Free Income Fund Sit Mutual Funds

Sit Bond Funds

FINANCIAL STATEMENTS AND OTHER INFORMATION

TABLE OF CONTENTS

	Page
Schedules of Investments
U.S. Government Securities Fund		2
Quality Income Fund		6
Tax-Free Income Fund		12
Minnesota Tax-Free Income Fund		24
Statements of Assets and Liabilities		32
Statements of Operations		33
Statements of Changes in Net Assets		34
Financial Highlights		36
Notes to Financial Statements		44
Report of Independent Registered Public Accounting Firm		52
Federal Tax Information		53
Additional Information		54

This document must be preceded or accompanied by a Prospectus.

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit U.S. Government Securities Fund

Principal Amount ($)		Coupon Rate (%)	Maturity Date		Fair   Value ($)
	Mortgage Pass-Through Securities - 22.1%
	Federal Home Loan Mortgage Corporation - 8.2%
	220,723	2.00		8/1/41		188,284
	966,405	4.50		7/1/52		928,052
	2,234,460	4.50		2/1/55		2,135,662
	283,978	5.00		7/1/35		285,840
	295,413	5.00		5/1/42		295,462
	444,842	5.50		9/1/52		448,319
	41,640	5.82		10/1/37		43,188
	3,615,120	6.00		11/1/38		3,714,934
	332,923	6.00		6/1/52		341,391
	774,416	6.00		2/1/54		777,438
	1,813,767	6.50		11/1/53		1,870,835
	72,110	6.88		2/17/31		73,581
	1,979,314	7.00		10/1/37		2,083,940
	1,173,491	7.00		10/1/38		1,241,360
	1,034,696	7.00		3/1/39		1,103,110
	1,697,922	7.00		11/1/53		1,775,874
	40,036	8.50		3/1/31		41,971
	1,103	9.00		5/1/31		1,111
						17,350,352
	Federal National Mortgage Association - 9.6%
	162,899	3.50		10/1/34		157,126
	2,301,600	4.00		4/1/54		2,145,963
	4,442,080	4.50		7/1/52		4,247,022
	5,059,470	4.50		9/1/52		4,843,329
	4,274,334	4.50		3/1/55		4,085,343
	1,787,462	5.00		7/1/52		1,734,555
	691,579	5.93		5/1/35		689,368
	49,330	6.00		5/1/37		50,719
	36,864	6.00		9/1/37		36,966
	1,728,865	6.00		2/1/54		1,733,219
	11,925	6.50		8/1/34		12,057
	55,303	7.00		7/1/33		55,970
	9,331	7.00		12/1/37		9,405
	415,648	7.00		9/1/47		412,684
	36,724	8.00		11/1/37		37,062
	344	8.08		7/20/30		345
	18,813	8.18		11/15/31		19,329
	7,201	9.00		5/15/28		7,198
	13,562	9.00		7/1/31		13,573
						20,291,233
	Government National Mortgage Association - 4.3%
	392,599	5.00		7/20/49		387,546
	5,068	5.50		9/15/25		5,065
	295,303	5.50		5/20/40		302,237
	641,755	5.50		8/20/62		638,453
	2,208,603	6.00		12/20/52		2,265,141
	2,250,257	6.00		8/20/62		2,270,942
	7,167	6.50		12/20/38		7,119
	2,763,659	7.00		12/20/52		2,861,750
	167,111	7.50		4/15/34		172,587
	309,286	8.00		10/20/48		318,931
						9,229,771
	Total Mortgage Pass-Through Securities					46,871,356
	(cost: $47,096,715)
	U.S. Treasury / Federal Agency Securities - 3.4%

Principal Amount ($)		Coupon Rate (%)	Maturity Date			Fair   Value ($)
	U.S. Treasury Bonds:
	2,850,000	3.63		2/15/53			2,387,988
	1,800,000	4.25		11/15/34			1,800,562
	600,000	4.38		5/15/34			606,586
	U.S. Treasury Notes:
	2,300,000	4.25		1/31/30			2,326,594
	Total U.S. Treasury / Federal Agency Securities						7,121,730
	(cost: $7,346,078)
	Collateralized Mortgage Obligations - 72.5%
	Federal Home Loan Mortgage Corporation - 16.0%
	689,698	4.65		7/25/32	1		643,317
	1,179,161	5.00		10/25/48			1,184,550
	1,519,110	5.00		2/25/51			1,491,049
	1,909,859	5.00		6/25/51			1,903,659
	2,057,729	5.00		4/25/52			2,055,400
	4,941,405	5.00		11/25/50	1		4,775,545
	1,819,171	5.50		6/25/48			1,854,229
	1,868,889	5.50		11/25/50			1,909,739
	4,267,334	5.50		6/25/51			4,320,872
	384,946	6.00		4/15/30			394,405
	862,797	6.00		6/15/37			909,470
	825,138	6.00		9/15/42			838,704
	2,390,571	6.00		9/25/52			2,472,034
	244,452	6.50		6/25/32			249,399
	297,901	6.50		8/15/39			316,544
	766,697	6.50		2/25/43			773,588
	732,951	6.50		10/25/43			746,753
	1,403,868	6.50		8/15/45			1,531,317
	600,000	7.00		12/15/40			656,809
	1,376,699	7.00		3/25/43			1,453,144
	1,930,831	7.00		7/25/43			2,025,721
	902,254	7.00		3/15/49			961,879
	498,873	7.50		9/25/43			513,939
							33,982,066
	Federal National Mortgage Association - 16.6%
	1,594,647	5.00		7/25/33			1,579,887
	2,964,876	5.00		11/25/50			2,892,529
	3,196,695	5.00		12/25/50			3,202,627
	364,479	5.00		1/25/51			362,353
	1,506,643	5.25		8/25/49			1,524,160
	367,878	5.36		6/25/42			374,890
	513,278	5.50		6/25/40			523,556
	772,257	5.50		1/25/49			785,045
	1,165,024	5.62		11/25/33			1,161,019
	215,879	5.75		8/25/33			217,465
	79,861	6.00		11/25/32			82,718
	441,733	6.00		9/25/35			463,437
	440,686	6.00		10/25/36			459,624
	1,099,851	6.00		11/25/43			1,124,800
	1,456,755	6.00		6/25/44			1,492,549
	396,631	6.00		8/25/44			406,529
	598,158	6.00		2/25/48			628,885
	1,450,000	6.00		10/25/53			1,533,714
	1,815,471	6.50		11/25/41			1,845,703
	997,083	6.50		7/25/42			1,034,425
	1,763,280	6.50		12/25/43			1,806,025
	786,546	6.53		9/25/37	1		776,099
	341,073	6.65		8/25/37	1		341,396
	275,952	6.75		4/25/37			277,588
	749,148	7.00		12/25/33			779,959

See accompanying notes to financial statements.
2	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Principal Amount ($)		Coupon Rate (%)	Maturity Date			Fair   Value ($)
	626,161	7.00		6/19/41	1		639,858
	884,525	7.00		12/25/41			917,458
	614,023	7.00		7/25/42			639,400
	495,701	7.00		2/25/44			511,373
	593,265	7.00		4/25/49			632,435
	228,300	7.50		10/25/40			229,636
	817,025	7.50		11/25/40			812,277
	839,575	7.50		7/25/41			851,129
	262,128	7.50		1/25/42			272,363
	492,330	7.50		5/25/42			520,313
	570,755	7.50		2/25/44			584,490
	362,527	7.50		5/25/44			383,496
	2,315,980	7.50		1/25/48			2,440,337
	22,809	8.19		10/25/42	1		24,402
	131,154	8.50		6/25/30			140,271
	7,913	19.15		3/25/39	1		10,054
							35,286,274
	Government National Mortgage Association - 39.7%
	1,988,900	4.74		5/20/51	1		1,913,023
	2,034,470	4.77		5/20/51	1		1,964,318
	4,406,634	4.81		8/20/51	1		4,262,071
	1,181,824	5.00		8/20/48			1,180,752
	3,588,120	5.00		1/20/51			3,545,221
	6,270,160	5.00		2/20/51			6,178,860
	630,680	5.00		6/20/52			632,120
	946,906	5.50		12/20/49			950,649
	3,329,632	5.50		12/20/50			3,392,703
	2,781,989	5.50		1/20/51			2,829,688
	1,575,486	5.50		4/20/51			1,617,590
	11,629,301	5.50		5/20/51			11,868,495
	11,767,867	5.50		6/20/51			11,959,656
	14,114,245	5.50		7/20/51			14,320,470
	441,884	5.50		10/20/51			450,991
	1,312,648	5.50		12/20/51			1,341,788
	6,700,416	5.89		2/20/51	1		6,860,125
	250,211	6.00		12/20/35			259,130
	151,232	6.00		3/20/42			157,353
	219,661	6.00		3/20/48			226,113
	1,229,642	6.00		3/20/49			1,247,680
	354,070	6.00		5/20/49			364,189
	1,869,463	6.50		8/20/48			1,915,314
	812,110	6.50		10/20/48			859,943
	753,020	6.50		1/20/49			796,689
	1,842,541	6.50		3/20/54			1,904,544
	906,528	7.00		11/20/48			947,524
	275,865	7.05		2/20/45	1		293,063
							84,240,062
	Vendee Mortgage Trust - 0.2%
	345,001	6.43		7/15/30	1		352,185
							352,185
	Total Collateralized Mortgage Obligations						153,860,587
	(cost: $164,069,783)
	Asset-Backed Securities - 0.7%
	Federal Home Loan Mortgage Corporation - 0.1%
	165	6.09		9/25/29	1		160
	232,734	7.16		7/25/29			236,121
							236,281

Principal Amount ($)		Coupon Rate (%)	Maturity Date			Fair   Value ($)
	Federal National Mortgage Association - 0.6%
	250,572	4.42		9/26/33	14		244,590
		SOFRRATE 30 Day
	3,847	Average + 0.28%, 4.62		11/25/32	1		3,765
	64,009	4.86		10/25/33	14		64,945
	903,468	5.74		2/25/33	14		911,090
	434	6.00		5/25/32	14		437
	185	7.36		6/25/26	1		185
							1,225,012
	Total Asset-Backed Securities						1,461,293
	(cost: $1,479,158)
	Put Options Purchased 19 - 0.0%						12,500
	(cost: $122,410)
Quantity		Name of Issuer				Fair    Value ($)
	Short-Term Securities - 1.1%
	2,398,595	Fidelity Inst. Money Mkt. Gvt. Fund, 4.23%					2,398,595
	(cost: $2,398,595)
	Total Investments in Securities - 99.8% (cost: $222,512,739)						211,726,061
	Other Assets and Liabilities - 0.2%						384,004
	Net Assets - 100.0%						$212,110,065

1 Variable rate security. Rate disclosed is as of March 31, 2025. 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.

14 Step Coupon: A bond that pays a coupon rate that increases on a specified date(s). Rate disclosed is as of March 31, 2025.

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

See accompanying notes to financial statements.
MARCH 31, 2025	3

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit U.S. Government Securities Fund (Continued)

¹⁹ Options outstanding as of March 31, 2025 were as follows:

Description	Contracts	Exercise  Price ($)	Expiration  Date	Counterparty	Notional  Amount ($)		Cost/  Premiums ($)		Value ($)
Put Options Purchased - U.S. Treasury Futures:
5-Year	200	105.75	May 2025	StoneX Financial, Inc.		21,150,000		122,410		12,500

A summary of the levels for the Fund’s investments as of March 31, 2025 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1		Level 2		Level 3
	Quoted Prices ($)		Other significant  observable inputs ($)		Significant  unobservable inputs ($)		Total ($)
Mortgage Pass-Through Securities		—		46,871,356		—		46,871,356
U.S. Treasury / Federal Agency Securities		—		7,121,730		—		7,121,730
Collateralized Mortgage Obligations		—		153,860,587		—		153,860,587
Asset-Backed Securities		—		1,461,293		—		1,461,293
Put Options Purchased		12,500		—		—		12,500
Short-Term Securities		2,398,595		—		—		2,398,595
Total:		2,411,095		209,314,966		—		211,726,061

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

See accompanying notes to financial statements.
4	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

[This page is intentionally left blank.]

MARCH 31, 2025 5

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Quality Income Fund

Name of Issuer	Principal Amount ($)		Coupon   Rate (%)		Maturity   Date		Fair   Value ($)
Asset-Backed Securities - 3.4%
Agency - 0.3%
FNMA Grantor Trust, Series 2004-T5, Class A11 1		314,053		3.40		5/28/35		312,546
Small Business Administration, Series 2006-20D, Class 1		24,334		5.64		4/1/26		24,317
Small Business Administration, Series 2007-20B, Class 1		18,483		5.49		2/1/27		18,626
Small Business Administration, Series 2007-20J, Class 1		56,508		5.57		10/1/27		56,953
								412,442
Non-Agency - 3.1%
RCKT Mortgage Trust, Series 2023-CES3, Class A1A 1, 4		728,372		7.11		11/25/43		740,140
RCKT Mortgage Trust, Series 2024-CES3, Class A1A 1, 4		1,506,439		6.59		5/25/44		1,525,798
RCKT Mortgage Trust, Series 2024-CES4, Class A1A 4, 14		570,919		6.15		6/25/44		575,893
RCKT Mortgage Trust, Series 2025-CES3, Class A1A 4, 14		1,000,000		5.55		3/25/55		1,001,046
Towd Point Mortgage Trust, Series 2023-CES2, Class A1A 1, 4		353,911		7.29		10/25/63		359,577
								4,202,454
Total Asset-Backed Securities (cost: $4,572,590)								4,614,896
Collateralized Mortgage Obligations - 37.5%
Agency - 27.3%
FHLMC REMICS, Series 3104, Class BY		3,038		5.50		1/15/26		3,034
FHLMC REMICS, Series 3418, Class DF		307,872		6.00		3/15/32		318,806
FHLMC REMICS, Series 3756, Class PZ		2,382,902		4.00		11/15/40		2,306,860
FHLMC REMICS, Series 4246, Class PT		190,461		6.50		2/15/36		197,294
FHLMC REMICS, Series 4390, Class CA		328,797		3.50		6/15/50		327,520
FHLMC REMICS, Series 4717, Class KV		272,365		3.50		8/15/40		271,450
FHLMC REMICS, Series 5226, Class D		345,769		3.50		12/15/45		333,872
FHLMC REMICS, Series 5252, Class BT		796,857		6.00		9/25/52		824,011
FHLMC REMICS, Series 5391, Class EA		1,543,380		5.50		5/25/49		1,556,232
FHLMC REMICS, Series 5417, Class HA		1,825,172		5.50		11/25/51		1,839,503
FHLMC REMICS, Series 5440, Class NG		1,037,892		5.50		9/25/49		1,040,169
FHLMC REMICS, Series 5444, Class AB		1,336,694		5.50		9/25/49		1,344,135
FHLMC REMICS, Series 5452, Class CB		1,279,902		5.00		8/25/51		1,278,680
FHLMC REMICS, Series 5470, Class MA		1,118,331		5.00		4/25/52		1,117,065
FHLMC REMICS, Series 5487, Class CA		2,359,278		5.50		12/25/51		2,372,653
FHLMC REMICS, Series 5495, Class CD		2,416,712		5.50		3/25/52		2,438,597
FHLMC Structured Pass-Through Certificates, Series T-60, Class 1A2		414,378		7.00		3/25/44		425,737
FNMA REMICS, Series 2002-W1, Class 2A 1		685,438		4.46		2/25/42		684,306
FNMA REMICS, Series 2004-W5, Class A1		1,356,614		6.00		2/25/47		1,409,832
FNMA REMICS, Series 2009-24, Class LC 1		242,395		1.96		4/25/39		211,441
FNMA REMICS, Series 2010-68, Class W 1		172,058		1.74		7/25/37		149,965
FNMA REMICS, Series 2011-10, Class AC		1,357,578		3.00		2/25/41		1,302,936
FNMA REMICS, Series 2011-146, Class LX		522,236		3.50		10/25/40		518,439
FNMA REMICS, Series 2015-61, Class VB		871,000		3.50		6/25/34		858,735
FNMA REMICS, Series 2017-97, Class DP		534		3.50		10/25/46		532
FNMA REMICS, Series 2018-25, Class AG		129,381		3.50		4/25/47		126,085
FNMA REMICS, Series 2023-64, Class HA		3,122,701		5.50		9/25/50		3,176,390
FNMA Trust, Series 2004-W9, Class 1A3		718,642		6.05		2/25/44		742,710
FRESB Mortgage Trust, Series 2018-SB45, Class A5H, SOFRRATE 30 Day Average + 0.81% 1		146,982		5.17		11/25/37		146,192
FRESB Mortgage Trust, Series 2018-SB46, Class A5H, SOFRRATE 30 Day Average + 0.81% 1		496,408		5.17		12/25/37		494,939
Government National Mortgage Association, Series 2004-11, Class QG		190,424		5.00		2/16/34		190,158
Government National Mortgage Association, Series 2020-149, Class AW		1,477,640		5.50		10/20/50		1,493,645
Government National Mortgage Association, Series 2024-116, Class MB		2,276,656		6.50		3/20/54		2,353,267
Government National Mortgage Association, Series 2024-4, Class GK		826,498		5.00		3/20/52		833,127
Government National Mortgage Association, Series 2024-79, Class MC		1,277,974		5.50		10/20/49		1,297,305
Government National Mortgage Association, Series 2025-20, Class CA		1,795,004		4.00		7/20/47		1,754,544
Seasoned Credit Risk Transfer Trust, Series 2019-4, Class M55D		216,870		4.00		2/25/59		202,553

See accompanying notes to financial statements.
6	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal Amount ($)		Coupon   Rate (%)		Maturity   Date		Fair   Value ($)
Seasoned Credit Risk Transfer Trust, Series 2022-2, Class M5TU		1,224,688		4.00		4/25/62		1,141,707
								37,084,426
Non-Agency - 10.2%
Chase Home Lending Mortgage Trust, Series 2024-3, Class A4 1, 4		600,466		6.00		2/25/55		602,957
Chase Home Lending Mortgage Trust, Series 2024-4, Class A6 1, 4		788,232		6.00		3/25/55		793,318
JP Morgan Mortgage Trust, Series 2021-1, Class A4 1, 4		508,871		2.50		6/25/51		463,871
JP Morgan Mortgage Trust, Series 2021-14, Class A4 1, 4		693,034		2.50		5/25/52		613,305
JP Morgan Mortgage Trust, Series 2021-6, Class A4 1, 4		1,238,608		2.50		10/25/51		1,104,406
JP Morgan Mortgage Trust, Series 2021-7, Class A4 1, 4		424,313		2.50		11/25/51		377,092
JP Morgan Mortgage Trust, Series 2024-4, Class A4A 1, 4		669,061		6.00		10/25/54		671,969
JP Morgan Mortgage Trust, Series 2025-1, Class A4 1, 4		1,470,531		6.00		6/25/55		1,477,701
New Residential Mortgage Loan Trust, Series 2017-3A, Class A1 1, 4		172,876		4.00		4/25/57		166,101
New Residential Mortgage Loan Trust, Series 2018-4A, Class A1S, TSFR1M + 0.86% 1, 4		138,877		5.18		1/25/48		135,526
RCKT Mortgage Trust, Series 2025-CES1, Class A1B 4, 14		1,369,947		5.70		1/25/45		1,375,853
Sequoia Mortgage Trust, Series 2020-4, Class A5 1, 4		213,422		2.50		11/25/50		196,991
Sequoia Mortgage Trust, Series 2023-4, Class A10 1, 4		520,479		6.00		11/25/53		520,861
Sequoia Mortgage Trust, Series 2024-9, Class A11 1, 4		726,323		5.50		10/25/54		723,761
Sequoia Mortgage Trust, Series 2025-1, Class A10 1, 4		2,839,293		6.00		1/25/55		2,848,864
Sequoia Mortgage Trust, Series 2025-2, Class A4 1, 4		1,532,673		6.00		3/25/55		1,540,344
Wells Fargo Mortgaged Backed Securities Trust, Series 2020-5, Class A3 1, 4		197,063		2.50		9/25/50		181,122
								13,794,042
Total Collateralized Mortgage Obligations (cost: $50,877,179)								50,878,468
Corporate Bonds - 15.1%
American Tower Trust 4		1,300,000		5.49		3/15/28		1,319,805
Comerica, Inc. 1		1,350,000		5.98		1/30/30		1,370,603
Crown Castle Towers, LLC 4		1,350,000		4.24		7/15/28		1,317,045
CVS Pass-Through Trust		267,116		6.04		12/10/28		268,985
CVS Pass-Through Trust		399,540		6.94		1/10/30		410,336
CVS Pass-Through Trust Series 2009 4		681,770		8.35		7/10/31		743,165
DTE Electric Securitization Funding II, LLC		944,783		5.97		3/1/32		991,806
Energy Transfer LP 4		1,000,000		6.00		2/1/29		1,016,674
F&G Global Funding 4		1,225,000		5.88		1/16/30		1,244,940
First Citizens BancShares, Inc./NC (Subordinated), TSFR3M + 2.47% 1		1,250,000		6.76		3/15/30		1,249,978
Great River Energy 4		815,370		6.25		7/1/38		842,046
ITT, LLC 17		1,225,000		7.40		11/15/25		1,229,951
Jackson National Life Global Funding 4		1,000,000		5.35		1/13/30		1,019,526
KeyBank National Association of Ohio (Subordinated)		1,300,000		6.95		2/1/28		1,367,888
Minnesota Life Insurance Co. (Subordinated) 4		1,125,000		8.25		9/15/25		1,139,776
Regions Financial Corp. 1		700,000		5.72		6/6/30		716,110
SBA Tower Trust 4		250,000		4.83		10/15/29		247,599
SBA Tower Trust 4		1,300,000		6.60		1/15/28		1,332,285
SouthState Corp. (Subordinated), TSFR3M + 5.62% 1		900,000		5.75		6/1/30		887,625
Truist Bank (Subordinated)		1,000,000		2.25		3/11/30		875,802
Western Alliance Bancorp (Subordinated), TSFR3M + 2.25% 1		900,000		3.00		6/15/31		841,500
Total Corporate Bonds (cost: $20,351,865)								20,433,445
Mortgage Pass-Through Securities - 23.0%
Federal Home Loan Mortgage Corporation - 4.6%
Freddie Mac		1,663,538		2.50		8/1/30		1,598,492
Freddie Mac		15,578		3.00		9/1/27		15,349
Freddie Mac		1,938,633		3.00		3/1/31		1,879,841
Freddie Mac		1,703		3.50		7/1/26		1,692
Freddie Mac		10,619		4.00		7/1/26		10,549
Freddie Mac		14,035		4.00		1/1/27		13,953
Freddie Mac		317,999		4.00		4/1/29		316,500

See accompanying notes to financial statements.
MARCH 31, 2025	7

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Quality Income Fund (Continued)

Name of Issuer	Principal Amount ($)		Coupon   Rate (%)		Maturity   Date		Fair   Value ($)
Freddie Mac		85,236		4.00		10/1/31		84,353
Freddie Mac		84		4.50		7/1/26		84
Freddie Mac		333,198		4.50		6/1/39		326,763
Freddie Mac		367		5.00		10/1/25		366
Freddie Mac		923,928		5.00		8/1/38		928,795
Freddie Mac		287,578		5.00		3/1/39		288,970
Freddie Mac		827,110		5.00		9/1/54		810,784
								6,276,491
Federal National Mortgage Association - 16.4%
Fannie Mae		216,754		3.00		10/1/27		214,429
Fannie Mae		20,002		3.00		8/1/28		19,709
Fannie Mae		322,864		3.00		5/1/30		314,756
Fannie Mae		203,550		3.00		11/1/31		200,386
Fannie Mae		19,485		3.50		1/1/26		19,358
Fannie Mae		1,308,958		3.50		4/1/32		1,269,781
Fannie Mae		320,570		3.50		11/1/38		308,576
Fannie Mae		833		4.00		6/1/25		830
Fannie Mae		5,149		4.00		10/1/31		5,089
Fannie Mae		323,137		4.00		10/1/34		320,052
Fannie Mae		728,027		4.00		6/1/38		716,994
Fannie Mae		90		4.50		4/1/25		90
Fannie Mae		149,613		4.50		3/1/29		149,132
Fannie Mae		70,811		4.50		7/1/31		70,963
Fannie Mae		1,423,828		4.50		4/1/39		1,425,888
Fannie Mae		2,152,270		4.50		9/1/53		2,058,606
Fannie Mae		2,038,647		4.50		8/1/54		1,948,508
Fannie Mae		2,608,349		5.00		6/1/53		2,558,634
Fannie Mae		426,780		5.50		12/1/35		436,447
Fannie Mae		824,275		5.50		12/1/38		837,646
Fannie Mae		297,528		5.50		8/1/40		306,765
Fannie Mae		498,624		5.50		2/1/42		508,095
Fannie Mae		731,750		5.50		5/1/49		742,672
Fannie Mae		463,664		5.50		9/1/49		470,783
Fannie Mae		1,629,408		5.50		8/1/56		1,674,577
Fannie Mae		499,952		6.00		7/1/37		519,592
Fannie Mae		628,885		6.00		11/1/38		646,330
Fannie Mae		1,134,740		6.00		10/1/53		1,157,091
Fannie Mae		510,447		6.50		5/1/40		529,469
Fannie Mae		556,017		7.00		1/1/40		580,439
Fannie Mae		476,576		7.00		1/1/40		497,508
Fannie Mae		1,677,911		7.50		10/1/38		1,759,425
								22,268,620
Government National Mortgage Association - 1.7%
Ginnie Mae		93,685		4.00		7/20/26		93,161
Ginnie Mae, US Treasury + 1.50% 1		11,657		4.88		4/20/33		11,765
Ginnie Mae, US Treasury + 1.50% 1		4,086		4.88		4/20/42		4,138
Ginnie Mae		80		5.00		6/20/26		79
Ginnie Mae		1,214,077		6.00		9/20/38		1,238,999
Ginnie Mae		844,741		6.00		9/20/38		894,172
								2,242,314
Other Federal Agency Securities - 0.3%
Small Business Administration Pools, PRIME - 2.50% 1		101,812		5.00		5/25/43		101,713
Small Business Administration Pools, PRIME + 0.78% 1		154,050		8.28		2/25/28		157,360

See accompanying notes to financial statements.
8	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal Amount ($)		Coupon   Rate (%)		Maturity   Date		Fair   Value ($)
Small Business Administration Pools, PRIME + 0.80% 1		63,088		8.30		3/25/30		64,938
								324,011
Total Mortgage Pass-Through Securities (cost: $31,282,693)								31,111,436
Taxable Municipal Bonds - 16.6%
City of Miami FL		1,000,000		5.14		1/1/30		1,034,743
City of San Francisco CA		55,000		5.50		11/1/25		55,225
Colorado Housing & Finance Authority		670,000		6.50		5/1/48		708,207
Columbus Metropolitan Housing Authority		500,000		5.38		9/1/28		510,380
Connecticut Housing Finance Authority		1,000,000		5.75		11/15/54		1,024,349
County of Yamhill OR		325,000		4.50		10/1/30		315,517
Energy Northwest		215,000		3.20		7/1/28		208,481
Florida Housing Finance Corp.		970,000		6.50		1/1/55		1,020,481
Idaho Housing & Finance Association		935,000		6.00		1/1/48		973,981
Idaho Housing & Finance Association		945,000		6.50		7/1/53		1,002,097
Illinois Housing Development Authority		945,000		6.50		4/1/54		995,936
Iowa Finance Authority		1,000,000		6.25		7/1/54		1,052,802
Kentucky Higher Education Student Loan Corp.		830,000		2.52		6/1/35		757,685
Kentucky Housing Corp.		1,000,000		6.25		1/1/55		1,050,214
Maryland Community Development Administration		925,000		6.00		9/1/53		958,152
Massachusetts Educational Financing Authority		180,000		4.41		7/1/34		176,233
Massachusetts Educational Financing Authority		775,000		2.64		7/1/37		714,022
Massachusetts Educational Financing Authority		750,000		6.07		7/1/33		795,752
Massachusetts Housing Finance Agency		990,000		6.50		12/1/52		1,044,088
Massachusetts State College Building Authority		500,000		5.83		5/1/30		515,076
Minnesota Housing Finance Agency		1,000,000		6.13		7/1/55		1,051,921
Nebraska Investment Finance Authority		1,000,000		6.00		9/1/53		1,046,675
North Carolina Housing Finance Agency		490,000		6.50		1/1/55		516,904
Oklahoma Development Finance Authority		396,005		3.88		5/1/37		382,770
Rhode Island Student Loan Authority		1,000,000		5.80		12/1/33		1,046,678
Rhode Island Student Loan Authority		1,000,000		4.00		12/1/38		978,268
Somis Union School District G.O.		535,000		2.06		8/1/30		486,036
State of Oregon Housing & Community Services Department		965,000		6.25		7/1/53		1,007,036
Utah Housing Corp.		980,000		6.25		1/1/54		1,025,085
Wisconsin Housing & Economic Development Authority 8		55,000		3.50		3/1/46		54,790
Total Taxable Municipal Bonds (cost: $22,264,972)								22,509,584
U.S. Treasury / Federal Agency Securities - 1.9%
U.S. Treasury - 1.9%
U.S. Treasury Notes		2,600,000		4.13		10/31/29		2,616,047
								2,616,047
Total U.S. Treasury / Federal Agency Securities (cost: $2,580,759)								2,616,047

See accompanying notes to financial statements.
MARCH 31, 2025	9

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Quality Income Fund (Continued)

Name of Issuer	Quantity				Fair Value ($)
Short-Term Securities - 1.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 4.23% (cost: $2,349,401)		2,349,401			2,349,401
Total Investments in Securities - 99.2% (cost: $134,279,459)					134,513,277
Other Assets and Liabilities, net - 0.8%					1,052,890
Net Assets - 100.0%					$135,566,167

1 Variable rate security. Rate disclosed is as of March 31, 2025. 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.

4 144A Restricted Security. The total value of such securities as of March 31, 2025 was $28,219,357 and represented 20.8% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

8 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 March 31, 2025, 0.0% of net assets in the Fund was invested in such securities.

14 Step Coupon: A bond that pays a coupon rate that increases on a specified date(s). Rate disclosed is as of March 31, 2025.

17 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.

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

A summary of the levels for the Fund’s investments as of March 31, 2025 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1   Quoted   Prices ($)		Level 2 Other significant  observable inputs ($)		Level 3 Significant  unobservable inputs ($)		Total ($)
Asset-Backed Securities		—		4,614,896		—		4,614,896
Collateralized Mortgage Obligations		—		50,878,468		—		50,878,468
Corporate Bonds		—		20,433,445		—		20,433,445
Mortgage Pass-Through Securities		—		31,111,436		—		31,111,436
Taxable Municipal Bonds		—		22,509,584		—		22,509,584
U.S. Treasury / Federal Agency Securities		—		2,616,047		—		2,616,047
Short-Term Securities		2,349,401		—		—		2,349,401
Total:		2,349,401		132,163,876		—		134,513,277

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

See accompanying notes to financial statements.
10	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

[This page is intentionally left blank.]

MARCH 31, 2025 11

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Municipal Bonds - 88.3%
Alabama - 1.2%
AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.63		10/1/49		492,122
AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.70		10/1/54		490,575
AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.88		10/1/55		499,959
Mobile Co. Limited Obligation Warrants Rev. (Gomesa Proj.) 4		400,000		4.00		11/1/45		360,865
								1,843,521
Alaska - 0.2%
AK Industrial Dev. & Export Auth. Rev. (Boys & Girls Home) 2, 5, 15		250,000		5.50		N/A		6,550
AK Industrial Dev. & Export Auth. Rev. (GTR Fairbanks Community Hospital Foundation)		250,000		5.00		4/1/33		250,587
								257,137
Arizona - 0.3%
AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) 2, 4, 5		750,000		6.75		7/1/30		22,500
AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) 2, 4, 5		100,000		5.50		7/1/31		3,000
AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) 2, 4, 5		750,000		7.75		7/1/50		22,500
AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) 2, 4, 5		200,000		6.00		7/1/51		6,000
AZ Industrial Dev. Auth. Rev. (Mirabella ST ASU Proj.) 1, 4		100,000		4.70		10/1/28		91,849
Pima Co. Industrial Dev. Auth. Rev. (LA Posada at Pusch Ridge Proj.) 4		350,000		6.25		11/15/35		372,672
								518,521
Arkansas - 0.2%
Mountain Home City Sales & Use Tax Rev.		420,000		2.00		9/1/38		298,311
California - 3.7%
CA Enterprise Dev. Auth. Rev. (Castilleja School Foundation Proj.)		300,000		4.00		6/1/54		271,641
CA Municipal Finance Auth. Rev. (Aldersly Proj.)		300,000		5.00		5/15/43		312,497
CA Municipal Finance Auth. Rev. (Caritas Proj.)		250,000		4.00		8/15/56		204,835
CA Pollution Control Financing Auth. Rev. (Poseidon Resources) 4		300,000		5.00		7/1/38		314,613
Encinitas Union School District G.O. Capital Appreciation 6		500,000		6.75		8/1/35		620,613
Irvine Facs. Financing Auth. Rev. (Gateway Preserve Land Acquisition Proj.) 9		300,000		5.25		5/1/48		303,651
Los Alamitos Unified School District Capital Appreciation C.O.P. 6		1,100,000		5.95		8/1/34		1,217,572
Orange Co. Community Facs. District No. 2017-1 Special Assessment (Village of Esencia)		500,000		4.00		8/15/45		451,408
Sacramento Co. Water Financing Auth. Rev. (NATL-RE FGIC Insured) 1		500,000		3.64		6/1/39		456,424
San Jose Financing Auth. Rev. (Civic Center Garage Proj.) 9		400,000		5.00		6/1/39		400,581
Tracy Joint Unified School District G.O. Capital Appreciation 6		600,000		7.00		8/1/41		626,538
Val Verde Unified School District G.O. Capital Appreciation (AGM Insured) 6		500,000		6.13		8/1/34		578,425
								5,758,798
Colorado - 2.3%
CO Educational & Cultural Facs. Auth. Rev. (CO Springs Charter Academy Proj.)		250,000		5.60		7/1/34		250,322
CO Educational & Cultural Facs. Auth. Rev. (Mountain Phoenix Community Proj.) 4		500,000		6.00		7/1/43		458,080
CO Health Facs. Auth. Rev. (Aberdeen Ridge)		400,000		3.50		5/15/30		379,903
CO Health Facs. Auth. Rev. (Aberdeen Ridge)		415,000		5.00		5/15/44		331,303
CO Health Facs. Auth. Rev. (Aberdeen Ridge)		500,000		5.00		5/15/58		361,319
Creekwalk Marketplace Business Improvement District Rev.		500,000		6.00		12/1/54		485,205
Reunion Metropolitan District Rev.		562,454		3.63		12/1/44		411,598
Rudolph Farms Metropolitan District No. 6 G.O.		500,000		6.50		6/1/52		483,938
Sterling Ranch Community Auth. Board Rev. 4		500,000		5.75		12/1/54		498,614
								3,660,282

See accompanying notes to financial statements.
12	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Connecticut - 0.9%
Stamford Hsg. Auth. Rev. (Dogwoods Proj.) 4		350,000		11.00		12/1/27		350,000
Stamford Hsg. Auth. Rev. (Mozaic Concierge Living Proj.)		750,000		6.50		10/1/55		768,062
Waterbury Hsg. Auth. Rev. (Laurel Estates Preservation Proj.)		250,000		4.50		2/1/42		245,986
								1,364,048
Delaware - 0.6%
DE State Hsg. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.65		7/1/50		490,968
DE State Hsg. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.50		7/1/54		482,194
								973,162
Florida - 16.2%
Artisan Lakes East Community Dev. District Special Assessment		450,000		4.00		5/1/51		370,411
Ave Maria Stewardship Community District Special Assessment (Phase 4 Master IMPT Proj.) 4		500,000		5.50		5/1/53		503,092
Blackburn Creek Community Dev. District Special Assessment (Grand Palm Proj.)		100,000		6.25		5/1/35		102,510
Broward Co. FL Airport System Rev.		500,000		5.00		10/1/45		500,196
Capital Trust Agency Rev. (Tallahassee Tapestry) 2, 4, 5		550,000		6.75		12/1/35		82,500
Capital Trust Agency Rev. (Tapestry Walden Senior Hsg. Proj.) 2, 4, 5		250,000		6.75		7/1/37		2,500
Capital Trust Agency Rev. (Tuscan Gardens Senior Living Center) 2, 5		250,000		7.00		4/1/35		145,000
CFM Community Dev. District Special Assessment		500,000		4.00		5/1/51		409,726
East Nassau Stewardship District Special Assessment (PDP#4 Series 2024 Proj.)		350,000		5.25		5/1/29		348,288
East Nassau Stewardship District Special Assessment (Wildlight Village Phase 3 Proj.)		500,000		5.50		5/1/55		482,522
Elevation Pointe Community Dev. District Special Assessment		500,000		4.40		5/1/32		493,601
Entrada Community Dev. District Special Assessment Rev. 4		400,000		4.00		5/1/52		329,615
FL Dev. Finance Corp. Rev. (Jensen Dunes Proj.) 4		500,000		5.00		11/15/30		465,736
FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		765,000		5.05		7/1/47		772,156
FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		705,000		2.75		7/1/50		471,640
FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		1,355,000		2.30		1/1/52		807,610
FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		470,000		4.75		1/1/54		463,982
FL Municipal Loan Council Special Assessment (Shingle Creek Transit & Utility 2024)		655,000		5.15		5/1/44		658,353
Gardens at Hammock Beach Community Dev. District Special Assessment		345,000		5.88		5/1/55		335,956
Gramercy Farms Community Dev. District Special Assessment		20,000		6.75		5/1/39		19,335
Grande Pines Community Dev. District Special Assessment		635,000		4.00		5/1/51		520,353
Greater Orlando Aviation Auth. Rev.		500,000		5.00		10/1/49		501,040
Hacienda North Community Dev. District Special Assessment		500,000		6.30		5/1/43		530,210
Harbor Bay Community Dev. District Special Assessment		280,000		4.10		5/1/48		241,908
Heritage Harbour North Community Dev. District Special Assessment		200,000		5.00		5/1/34		204,959
Hillsborough Co. Aviation Auth. Rev. (Tampa International Airport)		750,000		5.50		10/1/49		798,636
Hobe-St Lucie Conservancy District Special Assessment		350,000		5.60		5/1/44		356,255
Hyde Park Community Dev. District No. 1 Special Assessment		500,000		5.25		5/1/34		494,251
Hyde Park Community Dev. District No. 1 Special Assessment		500,000		4.00		5/1/52		402,135
Lakes of Sarasota Community Dev. District No. 2 Special Assessment		350,000		5.20		5/1/35		346,089
Lakes of Sarasota Community Dev. District Special Assessment		85,000		3.88		5/1/31		83,226
Lakes of Sarasota Community Dev. District Special Assessment		400,000		4.13		5/1/31		394,222
Lakes of Sarasota Community Dev. District Special Assessment		265,000		4.10		5/1/51		220,556
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood National)		300,000		5.25		5/1/37		303,870
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood National)		300,000		5.38		5/1/47		303,480
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood Ranch)		400,000		5.00		5/1/36		402,450

See accompanying notes to financial statements.
MARCH 31, 2025	13

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund (Continued)

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood Ranch)		430,000		3.00		5/1/41		337,950
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood Ranch)		530,000		5.55		5/1/54		530,105
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lorraine Lakes Proj.) 4		500,000		3.63		5/1/40		431,701
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (NE Sector Proj.)		300,000		5.00		5/1/38		302,950
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Sweetwater Proj.)		485,000		3.10		5/1/41		384,201
Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Webb Proj.) 4		320,000		5.00		5/1/37		323,063
Lakewood Ranch Stewardship District Special Assessment (Lake Club Phase 4 Proj.)		205,000		4.50		5/1/49		187,254
Lakewood Ranch Stewardship District Special Assessment (Palm Grove Proj.)		585,000		5.25		5/1/44		577,456
Lakewood Ranch Stewardship District Utility Rev. (System Acquisition Proj.) (AGM Insured)		500,000		5.25		10/1/53		522,769
Laurel Road Community Dev. District Special Assessment		310,000		3.13		5/1/31		283,992
LT Ranch Community Dev. District Special Assessment		300,000		5.90		5/1/53		311,328
Marshall Creek Community Dev. District Cap. Improvement Special Assessment Rev.		150,000		5.00		5/1/32		150,055
Meadow View at Twin Creeks Community Dev. District Special Assessment		220,000		3.75		5/1/52		169,404
Meadow View at Twin Creeks Community Dev. District Special Assessment		245,000		4.00		5/1/52		198,542
New River Community Dev. District Cap. Improvement Special Assessment Rev. 2, 5, 15		230,000		5.00		N/A		2
North River Ranch Community Dev. District Cap. Improvement Special Assessment Rev.		100,000		4.20		5/1/35		96,609
North River Ranch Improvement Stewardship District Special Assessment Rev.		455,000		5.75		5/1/33		463,580
North River Ranch Improvement Stewardship District Special Assessment Rev.		250,000		6.80		5/1/35		250,106
North River Ranch Improvement Stewardship District Special Assessment Rev.		500,000		6.50		5/1/44		530,268
Palm Beach Co. Health Facs. Auth. Rev. (Green Cay Life Plan Village Proj.) 4		500,000		11.50		7/1/27		500,000
Palm Beach Co. Health Facs. Auth. Rev. (Lifespace Communities, Inc.)		500,000		4.00		5/15/53		414,381
Palm Coast Park Community Dev. District Special Assessment Rev.		275,000		5.40		5/1/43		278,073
Parker Road Community Dev. District Special Assessment		500,000		4.10		5/1/50		388,169
Parkview at Long Lake Ranch Community Dev. District Special Assessment		270,000		4.00		5/1/51		221,252
Poitras East Community Dev. District Special Assessment		335,000		5.25		5/1/52		336,062
Rolling Hills Community Dev. District Special Assessment		160,000		3.65		5/1/32		150,587
Sawyers Landing Community Dev. District Special Assessment Rev.		750,000		4.25		5/1/53		634,252
Southern Groves Community Dev. District No. 5 Special Assessment		280,000		4.00		5/1/48		236,793
Sunbridge Stewardship District Special Assessment (Weslyn Park Proj.)		350,000		5.20		5/1/42		351,523
Trout Creek Community Dev. District Special Assessment		300,000		5.38		5/1/38		303,570
Viera Stewardship District Special Assessment		250,000		4.00		5/1/53		199,881
Viera Stewardship District Special Assessment		300,000		5.50		5/1/54		303,173
Waterset South Community Dev. District Special Assessment		500,000		5.90		5/1/42		518,539
Windward at Lakewood Ranch Community Dev. District Special Assessment		250,000		4.25		5/1/52		207,752
Wiregrass Community Dev. District Special Assessment		240,000		5.38		5/1/35		240,141
								25,203,852
Georgia - 1.3%
Clarke Co. Hospital Auth. Rev. (Piedmont Healthcare)		350,000		5.00		7/1/46		350,037
Fulton Co. Dev. Auth. Rev. (Woodruff Arts Center)		500,000		5.00		3/15/44		509,255
Gainesville & Hall Co. Dev. Auth. Rev. (Lanier Christian Academy, inc. Proj.) 4		640,000		6.25		9/1/44		584,897
Gainesville Hospital Auth. Rev. (Northeast Georgia Health System, Inc. Proj.)		500,000		5.00		2/15/37		510,950
								1,955,139
Idaho - 0.5%
ID Health Facs. Authority Rev. (Terraces Boise Proj.)		100,000		8.00		10/1/28		98,513
ID Health Facs. Authority Rev. (Terraces Boise Proj.)		290,000		3.80		10/1/31		269,687

See accompanying notes to financial statements.
14	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
ID Health Facs. Authority Rev. (Terraces Boise Proj.)		500,000		4.50		10/1/50		411,691
								779,891
Illinois - 4.2%
Burbank Educational Facs. Rev. (Intercultural Montessori Language School) 4		500,000		6.00		9/1/35		500,350
Chicago O’Hare International Airport Rev. (Senior Lien)		500,000		5.25		1/1/48		518,470
Chicago O’Hare International Airport Rev. (Senior Lien) (AGM Insured)		500,000		5.50		1/1/53		516,537
IL Fin. Auth. Rev. (Christian Homes, Inc.) 2, 5		500,000		5.00		5/15/36		365,000
IL Fin. Auth. Rev. (Edward Elmhurst Healthcare)		1,000,000		5.00		1/1/44		1,060,035
IL Fin. Auth. Sports Facs. Rev. (North Shore Ice Arena Proj.)		1,000,000		6.25		12/1/38		681,871
IL Hsg. Dev. Auth. Rev.		750,000		4.75		10/1/48		738,698
IL Hsg. Dev. Auth. Rev.		500,000		4.63		4/1/50		487,283
IL Sports Facilities Auth. Rev. (State Tax Supported) (AGM Insured)		1,000,000		5.25		6/15/31		1,010,104
Malta Tax Allocation Rev. 2, 5		1,921,000		5.75		12/30/25		441,830
Southwestern IL Dev. Auth. Tax Allocation Ref. (Local Govt. Program) 2, 15		313,173		7.00		N/A		250,538
								6,570,716
Indiana - 1.1%
IN Hsg. & Community Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		1,500,000		4.80		7/1/54		1,488,693
Merrillville Industry Economic Dev. Rev. (Belvedere Housing Proj.)		300,000		5.75		4/1/36		283,845
								1,772,538
Iowa - 0.8%
IA Fin. Auth. Rev. (Lifespace Communities, Inc.)		500,000		4.00		5/15/53		414,380
IA Fin. Auth. Rev. (Lifespace Communities, Inc.)		530,000		4.00		5/15/55		435,034
IA Finance Auth. Rev. (Lifespace Communities Inc.)		350,000		5.00		5/15/49		339,169
								1,188,583
Kentucky - 0.4%
Boyle Co. Educational Facs. Auth. Rev. (Centre College)		600,000		5.25		6/1/49		615,436
Louisiana - 2.4%
Capital Area Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.50		10/1/53		512,299
LA Hsg. Fin. Agy. Single Family Mtg. Rev. (Home Ownership Prog.) (GNMA/FHLMC Collateralized)		385,000		2.50		12/1/45		269,158
LA Hsg. Fin. Agy. Single Family Mtg. Rev. (Home Ownership Prog.) (GNMA/FHLMC Collateralized)		475,000		5.75		6/1/54		508,865
LA Local Government Environmental Facilities & Community Development Auth.		500,000		6.00		11/15/30		501,072
LA Local Government Environmental Facilities & Community Development Auth. Rev. 4		200,000		5.65		11/1/37		209,214
LA Local Government Environmental Facilities & Community Development Auth. Rev. 4		410,000		4.00		11/1/44		370,061
LA Local Government Environmental Facilities & Community Development Auth. Rev. 4		390,000		4.40		11/1/44		378,973
LA Local Government Environmental Facilities & Community Development Auth. Rev. 4		615,000		4.00		11/1/46		553,978
LA Public Facs. Auth. Rev. (Tulane Univ. Proj.) (NATL-RE Insured) 1		435,000		3.77		2/15/36		421,489
								3,725,109
Maryland - 0.2%
MD Community Dev. Administration Rev.		500,000		2.55		9/1/44		359,914
Massachusetts - 0.9%
MA Dev. Finance Agy. Rev. (Orchard Cove, Inc.)		400,000		5.00		10/1/49		401,459
MA Education Finance Auth. Education Rev.		1,000,000		3.00		7/1/51		658,818
MA Housing Finance Agy. Rev.		400,000		3.85		12/1/47		346,078
								1,406,355
Michigan - 4.3%
City of Allen Park G.O. (BAM Insured)		300,000		3.25		5/1/34		282,398

See accompanying notes to financial statements.
MARCH 31, 2025	15

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund (Continued)

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
MI Finance Auth. Rev. (Holly Academy Proj.)		400,000		3.00		12/1/31		361,873
MI Finance Auth. Rev. (Madison Academy Proj.)		155,000		4.25		12/1/39		130,087
MI Hsg. Dev. Auth. Rev.		500,000		4.90		12/1/48		500,022
MI Hsg. Dev. Auth. Rev.		1,000,000		4.65		12/1/49		982,677
MI Hsg. Dev. Auth. Rev.		40,000		3.15		6/1/50		37,746
MI Hsg. Dev. Auth. Rev.		2,000,000		2.75		6/1/51		1,316,140
MI Hsg. Dev. Auth. Rev.		3,500,000		2.50		6/1/52		2,163,895
MI Hsg. Dev. Auth. Rev.		845,000		4.95		12/1/53		851,808
MI Public Educational Facs. Auth. Rev. (Chandler Park Academy)		145,000		6.35		11/1/28		145,079
								6,771,725
Minnesota - 0.2%
Apple Valley Rev. (Senior Living, LLC Proj.)		475,000		5.00		1/1/47		273,905
Mississippi - 0.7%
MS Development Bank Rev. (Green Bond-Hancock County) 4		800,000		4.55		11/1/39		771,832
MS Development Bank Rev. (Jackson Co. Gomesa Proj.) 4		400,000		3.63		11/1/36		368,398
								1,140,230
Missouri - 2.7%
Joplin Industrial Dev. Auth. Rev. (32nd Street Place Community Improvement Dist. Proj.)		155,000		3.50		11/1/40		141,445
Kansas City Industrial Dev. Auth. Rev. (United Methodist Retirement Home, Inc.) 2, 5		118,010		2.00		11/15/46		5,485
Kansas City Industrial Dev. Auth. Rev. (United Methodist Retirement Home, Inc.) 2, 5		264,421		5.00		11/15/46		178,915
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		1,000,000		5.00		11/1/48		1,001,476
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		435,000		2.50		5/1/50		275,692
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		1,000,000		4.63		11/1/50		984,928
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		350,000		2.40		11/1/51		215,559
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		985,000		4.70		11/1/53		972,084
MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.70		11/1/54		498,765
								4,274,349
Montana - 0.7%
MT Board of Housing Single Family Rev.		410,000		2.40		12/1/45		280,205
MT Board of Housing Single Family Rev. (GNMA/FNMA/FHLMC Collateralized)		750,000		4.85		12/1/50		750,899
								1,031,104
Nebraska - 0.5%
Mead Village Tax Allocation Rev. (E3 Biofuels - Mead LLC Proj.) 2, 5, 15		410,000		5.13		N/A		1,004
NE Investment Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		750,000		4.70		9/1/51		734,982
								735,986
Nevada - 0.7%
Las Vegas NV Special Improvement District No 817 Special Assessment (Summerlin Village 29)		300,000		6.00		6/1/48		316,008
NV Hsg. Division Rev. (GNMA/FNMA/FHLMC Collateralized)		750,000		2.60		4/1/46		530,323
NV Hsg. Division Rev. (GNMA/FNMA/FHLMC Collateralized)		495,000		2.45		10/1/51		309,258
								1,155,589
New Hampshire - 0.3%
New Hampshire Business Finance Auth. Rev. (Pennichuck Water Works, Inc.)		450,000		5.50		4/1/54		454,776
New Jersey - 1.3%
NJ Hsg. & Mtg. Finance Agy. Single Family Mtg. Rev.		735,000		2.30		10/1/46		482,377
NJ Hsg. & Mtg. Finance Agy. Single Family Mtg. Rev.		795,000		2.45		10/1/50		501,016

See accompanying notes to financial statements.
16	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal  Amount ($)		Coupon Rate (%)		Maturity Date		Fair   Value ($)
NJ Hsg. & Mtg. Finance Agy. Single Family Mtg. Rev.		1,000,000		4.80		10/1/53		1,001,523
								1,984,916
New Mexico - 0.4%
NM Mtg. Fin. Auth. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		495,000		2.35		7/1/51		301,590
NM Mtg. Fin. Auth. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		600,000		2.63		7/1/51		383,249
								684,839
New York - 5.3%
Hempstead Town Local Development Corp. Rev. (Hofstra University Proj.)		350,000		4.00		7/1/33		350,092
New York City Housing Development Corp. Multifamily Mtg. Rev.		300,000		4.05		11/1/41		283,667
New York Transportation Dev. Corp. Rev.		500,000		5.50		6/30/60		516,169
New York Transportation Dev. Corp. Rev. (AGC Insured)		1,000,000		5.25		12/31/54		1,034,193
New York Transportation Dev. Corp. Rev. (AGM Insured)		300,000		5.50		6/30/44		316,433
NY State Mortgage Agency Homeowner Mortgage Rev.		580,000		2.20		4/1/36		455,875
NY State Mortgage Agency Homeowner Mortgage Rev.		990,000		4.70		10/1/38		988,365
NY State Mortgage Agency Homeowner Mortgage Rev.		1,000,000		2.45		10/1/45		692,472
NY State Mortgage Agency Homeowner Mortgage Rev.		980,000		2.50		10/1/46		674,993
NY State Mortgage Agency Homeowner Mortgage Rev.		975,000		3.30		10/1/47		775,330
NY State Mortgage Agency Homeowner Mortgage Rev.		500,000		4.80		10/1/48		486,720
NY State Mortgage Agency Homeowner Mortgage Rev.		1,625,000		2.55		4/1/50		1,042,058
NY State Mortgage Agency Homeowner Mortgage Rev.		590,000		4.90		10/1/53		592,632
								8,208,999
North Carolina - 0.9%
Mecklenburg Co. Rev. (Little Rock Apts)		435,000		5.38		1/1/36		435,777
NC Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.00		7/1/46		502,333
NC Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		550,000		4.80		1/1/55		548,642
								1,486,752
North Dakota - 0.7%
ND Housing Finance Agency Rev.		925,000		2.50		7/1/44		659,875
ND Housing Finance Agency Rev.		500,000		5.10		7/1/48		502,951
								1,162,826
Ohio - 5.9%
Allen Co. Hospital Facs. Rev. (Mercy Health)		500,000		5.00		11/1/43		500,506
Columbus Regional Airport Auth. Rev. (John Glenn Columbus International Airport)		725,000		5.50		1/1/50		764,625
Euclid Public Library G.O.		300,000		5.00		12/1/49		305,431
North Ridgeville City School District G.O.		300,000		5.25		12/1/54		309,144
OH Housing Finance Agency Rev.		1,800,000		2.45		9/1/51		1,108,618
OH Housing Finance Agency Rev. (First-Time Homebuyer Program) (GNMA/FNMA/FHLMC Collateralized)		500,000		2.90		9/1/45		371,011
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		1,430,000		2.85		9/1/46		1,064,028
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		1,330,000		5.10		9/1/47		1,347,143
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.65		9/1/49		491,561
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		250,000		4.65		9/1/50		244,391
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		965,000		2.75		9/1/51		641,304
OH Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		995,000		4.70		9/1/54		976,352
OH Housing Finance Agency Rev. (Middletown Phase Two Proj.) 4		500,000		6.25		3/1/26		502,342

See accompanying notes to financial statements.
MARCH 31, 2025	17

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund (Continued)

Name of Issuer	Principal  Amount ($)		Coupon Rate (%)		Maturity Date		Fair   Value ($)
Xenia OH G.O. (BAM Insured)		500,000		5.00		12/1/54		512,266
								9,138,722
Oklahoma - 0.6%
OK Hsg. Finance Agency Rev. (Home Ownership Prog.) (GNMA/FNMA/FHLMC Collateralized)		500,000		4.60		3/1/49		489,588
OK Hsg. Finance Agency Rev. (Home Ownership Prog.) (GNMA/FNMA/FHLMC Collateralized)		480,000		4.60		9/1/49		470,100
								959,688
Oregon - 0.7%
OR Hsg. & Community Services Dept. Rev. (Single Family Mtg. Program)		500,000		2.35		1/1/44		347,273
OR Hsg. & Community Services Dept. Rev. (Single Family Mtg. Program)		1,000,000		2.38		1/1/45		686,317
								1,033,590
Pennsylvania - 1.3%
Butler Co. General Authority Rev. (School District Proj.) (AGM G.O. of District) 1		460,000		3.76		10/1/34		442,088
PA Higher Educational Assistance Agy. Rev.		335,000		2.63		6/1/42		295,313
PA Hsg. Finance Agency Rev.		1,000,000		5.00		10/1/50		1,007,706
Philadelphia Industrial Dev. Auth. Rev. (Charter School Proj.)		350,000		5.63		8/1/36		352,872
								2,097,979
South Carolina - 2.0%
Berkeley Co. Nexton Improvement District Special Assessment		350,000		4.25		11/1/40		316,053
SC Jobs-Economic Dev. Auth. Rev. (River Academy Proj.) 4		325,000		7.00		6/15/43		335,466
SC Jobs-Economic Dev. Auth. Rev. (Seafields at Kiawah Island Proj.)		500,000		7.50		11/15/53		529,283
SC State Hsg. Finance & Dev. Auth. Rev.		965,000		4.95		7/1/53		969,249
SC State Hsg. Finance & Dev. Auth. Rev.		500,000		4.63		7/1/54		487,207
SC State Hsg. Finance & Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.70		1/1/55		490,320
								3,127,578
South Dakota - 0.5%
SD Hsg. Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		750,000		4.80		11/1/48		749,963
Tennessee - 3.9%
Metropolitan Govt. Nashville & Davidson County Health & Edu. Facs. Board Rev. (Blakford at Green Hills)		895,000		4.00		11/1/45		749,018
Metropolitan Nashville Airport Auth. Rev.		300,000		5.00		7/1/49		301,795
Nashville Metropolitan Dev. & Hsg. Agency Tax Allocation 4		300,000		5.13		6/1/36		302,835
Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) 2, 5, 15		1,850,000		5.35		N/A		185
Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) 2, 5		7,875,000		5.55		1/1/29		787
Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) 2, 5		1,630,000		6.00		1/1/29		16
TN Hsg. Dev. Agency Rev.		815,000		2.55		1/1/45		581,243
TN Hsg. Dev. Agency Rev.		1,485,000		2.38		7/1/46		994,835
TN Hsg. Dev. Agency Rev.		385,000		2.55		7/1/46		268,564
TN Hsg. Dev. Agency Rev.		495,000		4.70		7/1/48		492,134
TN Hsg. Dev. Agency Rev.		730,000		5.05		7/1/48		733,011
TN Hsg. Dev. Agency Rev.		990,000		2.50		7/1/51		621,110
TN Hsg. Dev. Agency Rev.		500,000		4.80		7/1/54		500,430
TN Hsg. Dev. Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.35		7/1/48		506,067
								6,052,030
Texas - 10.4%
Arlington Higher Education Finance Corp., Education Rev. (Pineywoods Community Academy)		750,000		2.38		8/15/51		451,420
Brazos Higher Education Auth., Inc. Rev. (Subordinate Student Loan)		1,000,000		3.00		4/1/40		779,413
Dallas Special Tax (Fair Park Venue Proj.) 1, 4		250,000		6.25		8/15/53		250,139

See accompanying notes to financial statements.
18	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal  Amount ($)		Coupon Rate (%)		Maturity Date		Fair   Value ($)
El Paso Hsg. Finance Corp. Rev. (GNMA Collateralized)		770,000		5.20		3/1/55		778,558
Houston Airport System Rev. (AGM Insured)		1,000,000		5.25		7/1/48		1,031,759
New Hope Cultural Education Fac. Corp. Rev. (Cardinal Bay) 2, 15		260,000		4.00		N/A		207,350
New Hope Cultural Education Fac. Corp. Rev. (Cardinal Bay) 2		460,000		4.00		7/1/26		366,850
New Hope Cultural Education Facs. Finance Corp. Rev.		500,000		6.50		10/1/55		503,358
New Hope Cultural Education Facs. Finance Corp. Rev. (Buckingham Senior Living Community, Inc.) 1		530,322		2.00		11/15/61		193,124
New Hope Cultural Education Facs. Finance Corp. Rev. (Wesleyan Homes, Inc. Proj.)		750,000		5.00		1/1/55		609,456
New Hope Cultural Education Facs. Finance Corp. Rev. (Windhaven Proj.)		500,000		5.50		10/1/27		500,044
North Central Texas Health Facility Development Corp. (CC Young Memorial Home) 2, 5		204,000		5.38		2/15/25		112,200
TX Affordable Hsg. Corp. Rev. (GNMA Collateralized)		500,000		5.00		3/1/49		490,549
TX Affordable Hsg. Corp. Rev. (GNMA Collateralized)		1,000,000		4.88		3/1/53		1,006,658
TX Department of Housing & Community Affairs (GNMA Collateralized)		500,000		3.00		9/1/45		379,677
TX Department of Housing & Community Affairs (GNMA Collateralized)		985,000		2.50		7/1/51		612,283
TX Department of Housing & Community Affairs (GNMA Collateralized)		1,750,000		3.13		1/1/52		1,255,352
TX Department of Housing & Community Affairs (GNMA Collateralized)		500,000		5.00		1/1/49		490,887
TX Department of Housing & Community Affairs (GNMA Collateralized)		1,000,000		5.00		1/1/50		1,010,358
TX Department of Housing & Community Affairs (GNMA Collateralized)		500,000		3.00		3/1/50		362,057
TX Department of Housing & Community Affairs (GNMA Collateralized)		750,000		5.25		9/1/52		760,594
TX Department of Housing & Community Affairs (GNMA Collateralized)		1,500,000		5.25		1/1/53		1,519,771
TX Department of Housing & Community Affairs (GNMA Collateralized)		1,000,000		5.25		9/1/53		1,014,170
TX Department of Housing & Community Affairs (GNMA Collateralized)		1,500,000		5.13		1/1/54		1,513,493
								16,199,520
Utah - 3.1%
Black Desert Public Infrastructure District G.O. 4		500,000		4.00		3/1/51		405,578
Fiddlers Canyon Infrastructure Financing District Special Assessment (Fiddlers Canyon Assessment Area) 4		350,000		5.63		12/1/53		332,644
Fields Estates Public Infrastructure District Special Assessment (Fields Estates Assessment Area) 4		500,000		5.25		12/1/53		480,754
Jordanelle Ridge Public Infrastructure District No. 2 G.O. 4		500,000		7.75		3/1/54		501,163
Military Installation Dev. Auth. Rev.		1,000,000		4.00		6/1/52		838,026
Olympia Public Infrastructure District No. 1 G.O. 4		500,000		6.38		3/1/55		505,909
UT Charter School Finance Auth. Rev. (Mountain Sunrise Academy) 4		495,000		3.50		12/15/31		444,891
UT Charter School Finance Auth. Rev. (Wasatch Peak Academy Proj.)		325,000		5.00		10/15/49		328,199
UT Hsg. Corp. Single Family Mtg. Rev.		5,000		5.75		1/1/33		5,007
UT Hsg. Corp. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		495,000		4.70		1/1/54		493,812
UT Hsg. Corp. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		480,000		5.00		1/1/54		478,156
								4,814,139
Virginia - 1.0%
VA Beach Dev. Auth. Rev. (Westminster Canterbury Proj.)		320,000		6.25		9/1/30		327,230
VA Hsg. Dev. Auth. Rev. (Commonwealth Mortgage Bonds)		700,000		4.70		7/1/55		686,090
VA Hsg. Dev. Auth. Rev. (Commonwealth Mortgage Bonds)		550,000		4.70		7/1/55		539,071
								1,552,391
Washington - 0.6%
WA State Hsg. Finance Commission Rev. (Parkshore Juanita Bay Proj.) 4		500,000		5.50		1/1/44		493,938
WA State Hsg. Finance Commission Rev. (The Evergreen School Proj.)		500,000		4.50		7/1/55		468,825
								962,763
West Virginia - 0.9%
WV Hsg. Dev. Fund Rev.		665,000		2.50		11/1/51		420,765

See accompanying notes to financial statements.
MARCH 31, 2025	19

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund (Continued)

Name of Issuer	Principal  Amount ($)		Coupon Rate (%)		Maturity Date		Fair   Value ($)
WV Hsg. Dev. Fund Rev.		1,000,000		4.90		11/1/54		1,000,541
								1,421,306
Wisconsin - 1.3%
Public Finance Auth. Rev. (Grand Hyatt San Antonio Hotel Acquisition Proj.)		500,000		5.00		2/1/52		495,832
Public Finance Auth. Rev. (Grand Hyatt San Antonio Hotel Acquisition Proj.) 4		500,000		6.00		2/1/62		517,339
WI Public Finance Auth. Rev. (Delray Beach Radiation Therapy) 2, 4, 5		750,000		6.25		11/1/28		412,500
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,520		9.00		1/1/46		516
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,287		9.00		1/1/47		469
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		447		12.00		1/1/47		13
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,171		9.00		1/1/48		439
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		390		12.00		1/1/48		11
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,055		9.00		1/1/49		409
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		384		11.00		1/1/49		10
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,822		9.00		1/1/50		373
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		372		11.00		1/1/50		9
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		17,334		9.00		1/1/51		385
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		365		11.00		1/1/51		8
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 1, 2, 4		446,246		3.75		7/1/51		305,552
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		17,218		9.00		1/1/52		355
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		475		10.00		1/1/52		10
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,985		9.00		1/1/53		331
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		469		10.00		1/1/53		9
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,869		9.00		1/1/54		308
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		453		10.00		1/1/54		8
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		444		9.00		1/1/55		8
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,636		9.00		1/1/55		286
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		434		9.00		1/1/56		7
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,404		9.00		1/1/56		268
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		23,656		5.50		7/1/56		17,335
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		481		9.00		1/1/57		7
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,287		9.00		1/1/57		250
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		469		9.00		1/1/58		7
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		16,055		9.00		1/1/58		232
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,938		9.00		1/1/59		219
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		456		9.00		1/1/59		6
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		447		8.00		1/1/60		6
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,822		9.00		1/1/60		203
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		440		8.00		1/1/61		5
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,589		9.00		1/1/61		188
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		428		8.00		1/1/62		5
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,473		9.00		1/1/62		177
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		419		8.00		1/1/63		5
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,240		9.00		1/1/63		165
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		409		8.00		1/1/64		4
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,124		9.00		1/1/64		155
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		403		7.00		1/1/65		4

See accompanying notes to financial statements.
20	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal  Amount ($)		Coupon Rate (%)		Maturity Date		Fair   Value ($)
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		15,008		9.00		1/1/65		145
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		434		7.00		1/1/66		4
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		14,775		9.00		1/1/66		132
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		5,235		5.00		1/1/67		42
WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) 2, 4, 5		192,429		9.00		1/1/67		1,551
WI Public Finance Auth. Rev. (MD Proton Treatment Center) 2, 4, 5		500,000		6.13		1/1/33		225,000
								1,981,302
Total Municipal Bonds (Cost: $170,938,120)								137,708,280
	Quantity
Investment Companies - 4.5%
BlackRock MuniHoldings Fund, Inc. (MHD)		33,512						393,431
BlackRock MuniHoldings Quality Fund II, Inc. (MUE)		30,464						304,640
BlackRock MuniYield Quality Fund III, Inc. (MYI)		43,083						473,482
DWS Municipal Income Trust (KTF)		76,592						718,433
Invesco Advantage Municipal Income Trust II (VKI)		55,874						477,164
Invesco Municipal Opportunity Trust (VMO)		62,240						590,658
Invesco Municipal Trust (VKQ)		67,772						654,000
Invesco Pennsylvania Value Municipal Income Trust (VPV)		8,257						84,139
Invesco Quality Municipal Income Trust (IQI)		78,114						756,143
Invesco Trust for Investment Grade Municipals (VGM)		56,447						562,212
Nuveen AMT-Free Municipal Credit Income Fund (NVG)		32,623						403,873
Nuveen AMT-Free Quality Municipal Income Fund (NEA)		75,639						847,157
Nuveen Quality Municipal Income Fund (NAD)		61,295						706,118
Total Investment Companies (cost: $8,621,507)								6,971,450
Total Investments in Securities - 92.8% (cost: $179,559,627)								144,679,730
Other Assets and Liabilities, net - 7.2%								11,346,217
Net Assets - 100.0%								$156,025,947

1 Variable rate security. Rate disclosed is as of March 31, 2025. 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.

2 Security considered illiquid by the Investment Adviser. The total value of such securities as of March 31, 2025 was $3,188,843 and represented 2.0% of net assets.

4 144A Restricted Security. The total value of such securities as of March 31, 2025 was $14,917,732 and represented 9.6% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

5 The issuer is in default of interest or principal payments, or other debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2025 was $2,058,553 and represented 1.3% of net assets.

6 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.

9 Municipal Lease Security. The total value of such securities as of March 31, 2025 was $704,232 and represented 0.5% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

15 Securities with a “N/A” maturity date have passed their stated maturity date and have pending restructuring arrangements.

See accompanying notes to financial statements.
MARCH 31, 2025	21

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Tax-Free Income Fund (Continued)

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

Short futures contracts outstanding as of March 31, 2025 were as follows:

Type	Contracts		Expiration Date		Notional Amount ($)			Value/    Unrealized    Appreciation    (Depreciation) ($)
Short Futures: 10
U.S. Treasury Long Bond		40		June 2025		(4,691,250	)		(99,687)
U.S. Treasury 5-Year		59		June 2025		(6,381,219	)		(94,128)
U.S. Treasury 10-Year		78		June 2025		(8,675,062	)		(161,120)
									(354,935)

10 The amount of $6,000,000 in cash was segregated with the broker to cover margin requirements for derivative transactions as of March 31, 2025.

A summary of the levels for the Fund’s investments as of March 31, 2025 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1  Quoted  Prices ($)			Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)
Assets
Municipal Bonds		—			137,708,280		—		137,708,280
Investment Companies		6,971,450			—		—		6,971,450
Total:		6,971,450			137,708,280		—		144,679,730
Liabilities
Futures		(354,935	)		—		—		(354,935	)

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

See accompanying notes to financial statements.
22	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

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MARCH 31, 2025 23

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Minnesota Tax-Free Income Fund

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Municipal Bonds - 94.7%
Education/Student Loan - 16.9%
Baytown Township Rev. (St. Croix Prep)		1,000,000		4.00		8/1/36		928,549
Bethel Charter School Lease Rev. (Spectrum High School Proj.)		1,100,000		4.00		7/1/37		1,031,031
Bethel Charter School Lease Rev. (Spectrum High School Proj.)		1,750,000		4.25		7/1/47		1,558,825
Bethel Charter School Lease Rev. (Spectrum High School Proj.)		1,000,000		5.00		7/1/59		956,530
Brooklyn Park Charter School Lease Rev. (Athlos Leadership Academy Proj.)		605,000		5.25		7/1/30		578,069
Cologne Charter School Lease Rev. (Cologne Academy Proj.)		575,000		5.00		7/1/29		575,126
Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		1,255,000		5.25		7/1/37		1,257,151
Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		600,000		5.25		7/1/40		600,674
Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		1,000,000		5.50		7/1/50		1,000,768
Duluth Hsg. & Redevelopment Auth. Rev. (Public School Academy Proj.)		1,100,000		5.00		11/1/38		1,014,726
Duluth Hsg. & Redevelopment Auth. Rev. (Public School Academy Proj.)		350,000		5.00		11/1/48		299,065
Forest Lake Charter School Lease Rev. (Lake International Language Academy)		850,000		5.50		8/1/36		850,528
Ham Lake Charter School Lease Rev. (Davinci Academy Proj.)		875,000		5.00		7/1/31		870,344
Ham Lake Charter School Lease Rev. (Parnassus Prep. Sch. Proj.)		425,000		4.00		11/1/26		421,941
Ham Lake Charter School Lease Rev. (Parnassus Prep. Sch. Proj.)		2,720,000		5.00		11/1/36		2,728,486
Hugo Charter School Lease Rev. (Noble Academy Proj.)		750,000		5.00		7/1/29		750,208
Hugo Charter School Lease Rev. (Noble Academy Proj.)		1,000,000		5.00		7/1/34		1,000,198
Independence Charter School Lease Rev. (Beacon Academy Proj.)		160,000		4.25		7/1/26		158,191
Independence Charter School Lease Rev. (Beacon Academy Proj.)		750,000		4.75		7/1/31		723,253
Independence Charter School Lease Rev. (Beacon Academy Proj.)		1,200,000		5.00		7/1/36		1,140,695
Independence Charter School Lease Rev. (Paladin High School Proj.)		225,000		3.25		6/1/31		200,964
Independence Charter School Lease Rev. (Paladin High School Proj.)		1,410,000		4.00		6/1/51		1,036,355
Minneapolis School Lease Rev. (Friendship Academy of the Arts) 4		490,000		4.00		12/1/31		412,009
Minneapolis School Lease Rev. (Friendship Academy of the Arts) 4		1,385,000		5.25		12/1/43		1,076,783
Minneapolis School Lease Rev. (Twin Cities International School) 4		625,000		4.25		12/1/27		620,311
Minneapolis School Lease Rev. (Twin Cities International School) 4		1,000,000		5.00		12/1/37		967,986
MN Higher Education Fac. Auth. Rev. (Augsburg College)		2,950,000		4.25		5/1/40		2,033,824
MN Higher Education Fac. Auth. Rev. (Bethel Univ.)		1,000,000		5.00		5/1/47		900,497
MN Higher Education Fac. Auth. Rev. (College of St. Benedict)		1,900,000		5.00		3/1/37		1,903,120
MN Higher Education Fac. Auth. Rev. (College of St. Olaf)		2,530,000		3.00		10/1/41		2,035,081
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		2,000,000		5.00		10/1/47		2,054,712
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		4,000,000		5.00		10/1/47		4,101,576
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		750,000		5.00		4/1/35		760,614
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		1,150,000		4.00		4/1/39		1,074,594
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		850,000		5.00		10/1/40		884,368
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		4,000,000		4.00		10/1/44		3,746,519
MN Higher Education Fac. Auth. Rev. (Univ. of St. Thomas)		3,650,000		5.00		10/1/49		3,766,415
MN Office of Higher Education Rev. 8		2,000,000		4.00		11/1/42		1,826,991
MN Office of Higher Education Rev. 8		2,260,000		2.65		11/1/38		2,016,958
MN Office of Higher Education Rev. 8		990,000		4.00		11/1/37		977,656
Moorhead Educational Fac. Rev. (Concordia College Corp. Proj.)		1,250,000		5.00		12/1/40		1,239,933
Savage Charter School Lease Rev. (Aspen Academy)		215,000		4.00		10/1/26		212,576
St. Cloud Charter School Lease Rev. (Stride Academy Proj.)		1,850,000		5.00		4/1/36		1,691,170
St. Paul Hsg. & Redev. Auth.		700,000		5.00		12/1/30		700,323

See accompanying notes to financial statements.
24	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
St. Paul Hsg. & Redev. Auth.		1,150,000		5.00		12/1/37		1,149,940
St. Paul Hsg. & Redev. Auth.		705,000		5.00		12/1/46		672,672
St. Paul Hsg. & Redev. Auth. (German Immersion School)		775,000		5.00		7/1/33		775,130
St. Paul Hsg. & Redev. Auth. (Hope Community Academy Proj.)		720,000		4.50		12/1/29		663,859
St. Paul Hsg. & Redev. Auth. (Math & Science Academy) 4		800,000		3.00		6/1/31		376,000
St. Paul Hsg. & Redev. Auth. (Math & Science Academy) 4		1,225,000		4.00		6/1/51		575,750
St. Paul Hsg. & Redev. Auth. (Nova Classical Academy Proj.)		175,000		2.00		9/1/26		169,192
St. Paul Hsg. & Redev. Auth. (Nova Classical Academy Proj.)		350,000		4.00		9/1/31		342,591
St. Paul Hsg. & Redev. Auth. (St. Paul Conservatory for Performing Artists)		1,135,000		4.63		3/1/43		984,408
St. Paul Hsg. & Redev. Auth. (Twin Cities Academy Proj.)		255,000		4.00		7/1/25		254,661
St. Paul Hsg. & Redev. Auth. (Twin Cities Academy Proj.)		955,000		5.00		7/1/35		954,883
St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		770,000		3.00		12/1/29		726,381
St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		600,000		4.00		12/1/39		525,881
St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		1,000,000		4.00		12/1/49		808,898
St. Paul Hsg. & Redev. Auth. Rev. (Metro Deaf School Proj.) 4		700,000		5.00		6/15/38		671,701
St. Paul Hsg. & Redev. Auth. Rev. (Nova Classical Academy Proj.)		1,000,000		4.13		9/1/47		872,125
Woodbury Charter School Lease Rev.		400,000		4.00		12/1/40		339,972
Woodbury Charter School Lease Rev.		555,000		4.00		12/1/50		435,375
								65,985,112
Escrowed To Maturity/Prerefunded - 0.3%
Lakeville Hsg. & Redev. Auth. Parking Rev. (Ice Arena. Proj.)		1,250,000		4.00		2/1/32		1,259,603
General Obligation - 8.9%
Blooming Prairie Independent School District No. 756		1,300,000		2.25		2/1/45		836,714
Itasca County Independent School District No. 318		4,050,000		2.00		2/1/39		2,805,885
Itasca County Independent School District No. 318		4,250,000		2.00		2/1/40		2,856,585
Itasca G.O.		2,500,000		2.38		2/1/45		1,650,881
Itasca G.O.		4,000,000		2.50		2/1/50		2,521,970
Madison Lake G.O.		590,000		2.13		2/1/42		381,220
Moorhead G.O.		510,000		2.13		2/1/42		341,209
Morrison Co. Education District No. 6979		1,000,000		4.50		2/1/34		1,000,322
Norwood Young America Independent School District No. 108		1,400,000		2.13		2/1/42		917,832
Norwood Young America Independent School District No. 108		1,500,000		2.25		2/1/45		952,550
Richfield Independent School District No. 280		1,000,000		4.00		2/1/37		1,004,580
Robbinsdale Independent School District No. 281		1,000,000		2.25		2/1/41		693,193
Roseau Independent School District No. 682		400,000		2.25		2/1/46		254,363
Sartell Independent School District No. 748		1,000,000		4.50		2/1/46		999,685
Sauk Centre Independent School District No. 743		1,000,000		2.00		2/1/40		680,237
St. Cloud G.O.		1,090,000		2.00		2/1/41		773,894
St. Paul Independent School District No. 625		2,475,000		2.00		2/1/40		1,693,916
State of Minnesota G.O.		5,550,000		2.00		9/1/41		3,775,155
Virginia G.O.		825,000		5.00		2/1/41		811,369
White Bear Lake Independent School District No. 624		10,850,000		3.00		2/1/43		8,731,159
Zumbrota-Mazeppa Independent School District No. 2805		1,500,000		2.50		2/1/44		1,008,534
								34,691,253

See accompanying notes to financial statements.
MARCH 31, 2025	25

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Minnesota Tax-Free Income Fund (Continued)

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Hospital/Health Care - 14.4%
Center City Heath Care Facs. Rev. (Hazelden Betty Ford Foundation Proj.)		1,000,000		5.00		11/1/44		1,046,289
Center City Heath Care Facs. Rev. (Hazelden Betty Ford Foundation Proj.)		500,000		5.00		11/1/47		518,612
Chatfield Health Care and Hsg. Facs. Rev. (Chosen Valley Care Center)		1,225,000		5.00		9/1/52		1,036,388
Crookston Health Care Facs. Rev. (Riverview Health Care Proj.)		1,000,000		4.00		5/1/32		715,005
Dakota Co. Community Dev. Agy. (Sanctuary at W. St. Paul Proj.)		1,100,000		5.75		8/1/30		934,405
Dakota Co. Community Dev. Agy. (Sanctuary at W. St. Paul Proj.)		1,050,000		6.00		8/1/35		818,799
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		170,000		4.00		6/15/36		171,797
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		350,000		4.00		6/15/37		351,352
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		170,000		4.00		6/15/37		170,948
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		150,000		4.00		6/15/38		150,025
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		850,000		3.00		6/15/44		678,993
Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		1,100,000		5.25		6/15/52		1,151,519
Hayward Hsg. & Health Care Fac. Rev. (St. Johns Lutheran Home of Albert Lea Proj.)		1,900,000		5.00		10/1/34		1,045,000
Maple Grove Health Care System Rev. (Maple Grove Hospital Corp.)		825,000		5.00		5/1/32		836,371
Maple Grove Health Care System Rev. (Maple Grove Hospital Corp.)		2,175,000		4.00		5/1/37		2,040,406
Minneapolis & St. Paul Hsg. & Redev. Auth. Health Care Rev. (Children’s Health Care)		2,500,000		5.00		8/15/42		2,693,431
Minneapolis & St. Paul Hsg. & Redev. Auth. Health Care Rev. (Children’s Health Care)		1,000,000		5.00		8/15/43		1,066,216
Minneapolis Health Care System Rev. (Fairview Health Services)		2,590,000		5.00		11/15/34		2,602,122
Minneapolis Health Care System Rev. (Fairview Health Services)		2,500,000		5.00		11/15/49		2,489,102
MN Agricultural & Economic Dev. Board Rev. (HealthPartners Oblig. Group Proj.)		4,000,000		5.25		1/1/54		4,120,379
Moorhead Economic Dev. Auth. Rev.		280,000		4.60		9/1/25		278,562
Oak Park Heights Nursing Home Rev. (Boutwells Landing Care Center)		1,500,000		5.50		8/1/28		1,495,370
Oak Park Heights Nursing Home Rev. (Boutwells Landing Care Center)		1,000,000		6.00		8/1/36		985,141
Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev. 11		175,000		4.00		7/1/37		160,137
Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev. 11		200,000		4.00		7/1/39		180,016
Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev. 11		220,000		4.00		7/1/41		192,346
Rochester Health Care Facs. Rev. (Mayo Clinic)		7,500,000		4.00		11/15/48		6,881,835
Rochester Health Care Facs. Rev. (Mayo Clinic)		3,000,000		5.00		11/15/34		3,402,452
St. Cloud Health Care Rev. (CentraCare Health System Proj.)		5,385,000		5.00		5/1/46		5,358,222
St. Cloud Health Care Rev. (CentraCare Health System Proj.)		500,000		5.00		5/1/48		509,770
St. Louis Park Health Care Facs. Rev. (Mount Olivet Careview Home Health Proj.) 1		2,250,000		4.60		6/1/41		2,028,379
St. Paul Hsg. & Redev. Auth. Health Care Rev. (HealthPartners Oblig. Group Proj.)		4,800,000		5.00		7/1/32		4,802,044
St. Paul Hsg. & Redev. Auth. Health Care Rev. (HealthPartners Oblig. Group Proj.)		2,000,000		5.00		7/1/33		2,000,442
St. Paul Hsg. & Redev. Auth. Health Care Rev. (Senior Episcopal Homes Proj.)		2,150,000		5.00		5/1/38		1,946,224
Wadena Rev. (Wadena Cancer Center Proj.)		1,000,000		5.00		12/1/45		1,025,702
								55,883,801
Industrial/Pollution Control - 0.5% 8
St. Paul Port Auth. Rev.		1,000,000		4.00		10/1/40		866,140
St. Paul Port Auth. Solid Waste Disposal Rev. (Gerdau St. Paul Steel Mill Proj.) 4		1,000,000		4.50		10/1/37		940,043
								1,806,183
Multifamily Mortgage - 21.0%
Anoka Hsg. Rev. (Homestead at Anoka, Inc. Proj.)		1,000,000		5.50		11/1/46		966,697
Apple Valley Rev. (Orchard Path Phase II Proj.)		300,000		4.00		9/1/36		282,041
Apple Valley Rev. (Orchard Path Phase II Proj.)		440,000		4.00		9/1/41		392,789

See accompanying notes to financial statements.
26	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
Apple Valley Rev. (Orchard Path Phase II Proj.)		830,000		4.00		9/1/51		672,856
Apple Valley Rev. (Orchard Path Phase II Proj.)		750,000		4.00		9/1/61		576,456
Apple Valley Senior Hsg. Rev. (Orchard Path Proj.)		2,000,000		5.00		9/1/58		1,879,041
Apple Valley Senior Hsg. Rev. (Presbyterian Homes)		1,500,000		5.00		9/1/43		1,484,767
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		1,175,000		4.00		1/1/26		1,166,520
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		460,000		6.75		1/1/27		366,151
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		950,000		4.00		1/1/30		903,170
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		1,430,000		4.25		1/1/37		1,265,905
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		950,000		7.00		1/1/37		512,115
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		1,640,000		4.38		1/1/47		1,302,107
Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		2,850,000		5.00		1/1/47		1,643,433
Bethel Hsg. and Health Care Facs. Rev. (Ecumen Obligated Group)		2,000,000		6.13		3/1/44		2,018,921
Bethel Rev. (Grandview Christian Home Proj.)		1,500,000		5.00		10/1/41		1,486,754
Blaine Senior Hsg. & Health Care Fac. Rev. (Crest View Senior Community Proj.) 2, 5		1,250,000		5.13		7/1/25		687,500
Blaine Senior Hsg. & Health Care Fac. Rev. (Crest View Senior Community Proj.) 2, 5		1,645,000		5.75		7/1/35		904,750
Blaine Senior Hsg. & Health Care Fac. Rev. (Crest View Senior Community Proj.) 2, 5		2,000,000		6.13		7/1/45		1,100,000
Chisago Hsg. and Health Care Rev. (CDL Homes LLC)		750,000		6.00		8/1/33		750,285
Cloquet Rev. (HADC Cloquet, LLC Proj.)		180,000		2.20		8/1/28		164,177
Cloquet Rev. (HADC Cloquet, LLC Proj.)		250,000		2.60		8/1/30		219,596
Cloquet Rev. (HADC Cloquet, LLC Proj.)		200,000		2.80		8/1/31		173,059
Cloquet Rev. (HADC Cloquet, LLC Proj.)		200,000		3.20		8/1/34		166,635
Cloquet Rev. (HADC Cloquet, LLC Proj.)		500,000		4.00		8/1/41		390,412
Cloquet Rev. (HADC Cloquet, LLC Proj.)		500,000		4.00		8/1/48		357,909
Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev.		3,500,000		4.00		1/1/42		3,246,539
Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev. (FNMA)		1,050,000		4.20		5/1/43		981,616
Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev. (The Quill Proj.) 4		2,500,000		3.55		4/1/39		2,024,612
Duluth Hsg. & Redevelopment Auth. Rev. (Pennel Park Proj.)		1,245,082		4.50		8/1/41		1,227,347
Fridley Multifamily Hsg. Rev. (Village Green Apartments Proj.)		3,222,756		3.75		11/1/34		3,207,196
Hayward Health Care Fac. Rev. (American Baptist Homes Midwest Proj.)		1,350,000		5.38		8/1/34		1,081,515
Hayward Health Care Fac. Rev. (American Baptist Homes Midwest Proj.)		500,000		5.75		2/1/44		361,905
Lauderdale Multifamily Hsg. Rev. (The Fern Senior Affordable Housing Proj.)		2,000,000		5.13		1/1/40		1,934,859
Minneapolis & St. Paul Hsg. & Redev. Auth. Multifamily Hsg. Rev. (GNMA Collateralized) 8		2,765,000		4.75		1/20/42		2,753,502
Minneapolis Multifamily Hsg. Rev. (14th & Central LLLP Proj.) (FNMA Collateralized)		4,569,003		2.35		2/1/38		3,532,329
Minneapolis Multifamily Hsg. Rev. (Greenway Heights Family Housing)		1,015,000		5.75		7/15/31		1,014,907
Minneapolis Senior Hsg. & Health Care Rev. (Ecumen Mill City Quarter)		375,000		4.75		11/1/28		366,124
Minneapolis Senior Hsg. & Health Care Rev. (Ecumen Mill City Quarter)		1,500,000		5.00		11/1/35		1,404,341
Minneapolis Senior Hsg. & Health Care Rev. (Ecumen Mill City Quarter)		375,000		4.00		11/1/25		372,165
Minnetonka MF Hsg. Rev. (Elmbrooke & Golden Valley Townhome Proj.) (FNMA Collateralized)		1,793,957		3.00		11/1/34		1,597,275
MN Hsg. Fin. Agy. Rental Hsg. Rev.		1,000,000		5.20		8/1/43		1,000,526
Moorhead Economic Dev. Auth. Rev. Ref. (EverCare Sr. Living LLC)		280,000		4.65		9/1/26		275,464
Moorhead Health Care Rev. Ref. (EverCare Sr. Living LLC)		1,000,000		5.00		9/1/32		920,518
Moorhead Health Care Rev. Ref. (EverCare Sr. Living LLC)		250,000		5.13		9/1/37		218,988
New Ulm Economic Dev. Auth. Rev. (HADC Ridgeway Proj.)		1,500,000		5.00		8/1/39		1,248,663
North Oaks Rev. (Waverly Gardens Proj.)		150,000		4.25		10/1/41		139,059
North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		2,000,000		4.00		10/1/33		1,913,654
North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		1,500,000		5.00		10/1/35		1,512,330

See accompanying notes to financial statements.
MARCH 31, 2025	27

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Minnesota Tax-Free Income Fund (Continued)

Name of Issuer	Principal   Amount ($)		Coupon Rate (%)		Maturity Date		Fair  Value ($)
North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		1,000,000		5.00		10/1/47		987,357
Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		720,000		6.38		12/1/33		720,697
Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		2,500,000		6.50		12/1/35		2,502,294
Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		250,000		6.88		12/1/48		250,178
Sartell Health Care & Hsg. Fac. Rev. (Country Manor Campus LLC Proj.)		2,150,000		5.30		9/1/37		2,132,022
Sartell Health Care & Hsg. Fac. Rev. (Country Manor Campus LLC Proj.)		500,000		5.00		9/1/35		488,854
Sauk Rapids Health Care & Hsg. Facs. Rev. (Good Shepherd Lutheran Home Proj.)		1,640,000		5.13		1/1/39		1,428,070
St. Anthony Multifamily Hsg. Rev. (Silver Lake Village Hsg.)		250,000		5.75		12/1/28		250,057
St. Anthony Multifamily Hsg. Rev. (Silver Lake Village Hsg.)		2,000,000		6.00		12/1/30		2,000,434
St. Joseph Senior Hsg. & Health Care Rev. (Woodcrest of Country Manor Proj.)		1,500,000		5.00		7/1/55		1,343,146
St. Paul Hsg. & Redev. Auth. (Higher Ground Academy Proj.)		1,000,000		5.50		12/1/38		1,035,958
St. Paul Hsg. & Redev. Auth. Health Care Rev. (Carondelet Village Proj.)		1,075,000		4.25		12/1/27		1,066,387
St. Paul Hsg. & Redev. Auth. Health Care Rev. (Carondelet Village Proj.)		2,400,000		5.00		12/1/47		2,374,723
St. Paul Hsg. & Redev. Auth. Multifamily Housing Rev. (Marian Center Proj.)		780,000		5.30		11/1/30		778,512
St. Paul Hsg. & Redev. Auth. Multifamily Housing Rev. (Marian Center Proj.)		2,590,000		5.38		5/1/43		2,463,407
St. Paul Park Senior Hsg. Rev. (Presbyterian Homes Bloomin Proj.)		1,820,000		5.00		9/1/42		1,813,181
Vergas Hsg. & Healthcare Facs. Rev. (CDL Homes Proj.)		1,000,000		4.25		8/1/43		789,007
Vergas Rev. (CDL Homes Proj.)		40,000		4.00		8/1/25		39,830
Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		1,500,000		4.00		8/1/44		1,332,767
Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		1,000,000		5.00		8/1/49		991,374
Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		2,750,000		5.00		8/1/54		2,673,619
								81,631,354
Municipal Lease - 2.4% 9
Lake Agassiz Education Cooperative No. 0397-52		645,000		2.50		2/1/32		551,040
Minnetonka Independent School District No. 276		1,410,000		2.25		2/1/44		923,392
Minnetonka Independent School District No. 276		1,000,000		2.13		2/1/41		682,142
Minnetonka Independent School District No. 276		750,000		2.38		7/1/51		440,251
MN Hsg. Fin. Agy. Rev.		2,065,000		3.00		8/1/43		1,622,932
MN Hsg. Fin. Agy. Rev. (State Appropriation)		2,000,000		5.00		8/1/34		2,001,515
Northeastern Metropolitan Intermediate School District No. 916		1,000,000		5.00		2/1/34		1,001,589
Pine Island Independent School District No. 255		525,000		2.00		2/1/40		352,604
Pine Island Independent School District No. 255		1,110,000		2.20		2/1/44		701,235
Pine Island Independent School District No. 255		895,000		2.25		2/1/47		542,257
Waconia Independent School District No. 110		500,000		5.00		2/1/37		500,328
								9,319,285
Municipal Money Market - 0.8%
Rochester Health Care Facs. Rev. (Mayo Clinic) 1		3,000,000		2.85		11/15/38		3,000,000
Other Revenue Bonds - 2.5%
Crystal Governmental Fac. Rev.		120,647		5.10		12/15/26		117,221
Northeastern Metropolitan Intermediate School District No. 916		2,500,000		4.00		2/1/38		2,421,870
St. Paul Hsg. & Redev. Auth. Rev. (Amherst H Wilder Foundation Proj.)		1,000,000		5.00		12/1/36		1,029,924
St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (9th St. Lofts Proj.)		175,000		6.38		2/15/28		175,097
St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (Emerald Gardens Proj.)		290,000		6.50		3/1/29		290,100
St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (North Quadrant Owner Occupied Proj.)		550,000		7.00		2/15/28		551,527
St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (North Quadrant Owner Occupied Proj.)		233,000		7.50		2/15/28		233,084

See accompanying notes to financial statements.
28	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)
St. Paul Port Auth. Lease Rev. (Regions Hospital Parking Ramp Proj.)		3,310,000		5.00		8/1/36		3,311,064
Virgin Islands Public Fin. Auth. (Gross Receipts Taxes Loan Note) 11		2,000,000		5.00		10/1/42		1,749,474
								9,879,361
Sales Tax Revenue - 1.2% 11
American Samoa Economic Development Authority Rev.		2,000,000		6.25		9/1/29		2,020,026
Guam Govt. Business Privilege Tax Rev.		2,750,000		5.00		11/15/35		2,761,742
								4,781,768
Single Family Mortgage - 22.1%
Dakota Co. Community Dev. Agy. Single Family Mtg. Rev. (GNMA)		465,000		4.45		12/1/32		465,045
Dakota Co. Community Dev. Agy. Single Family Mtg. Rev. (GNMA-FNMA-FHLMC)		235,000		4.88		12/1/33		235,037
Minneapolis St. Paul Hsg. Fin. Board Single Family Mtg. Rev. (GNMA-FNMA)		15,000		4.45		12/1/27		15,002
MN Hsg. Fin. Agy. Homeownership Fin.		7,295,000		2.25		7/1/41		5,169,717
MN Hsg. Fin. Agy. Homeownership Fin.		8,270,000		2.40		7/1/46		5,572,923
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		3,130,000		2.45		7/1/45		2,172,865
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		7,645,000		2.45		7/1/46		5,212,140
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		1,482,787		3.30		5/1/48		1,325,595
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		474,187		3.75		11/1/48		445,827
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		487,829		3.60		1/1/49		457,598
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		501,431		3.45		3/1/49		453,896
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		846,513		3.15		6/1/49		738,809
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		871,101		2.47		1/1/50		694,166
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		6,210,000		2.55		1/1/51		3,927,693
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		6,635,000		2.50		7/1/51		4,116,761
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		475,000		2.38		7/1/46		318,213
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		9,340,000		2.45		1/1/52		5,802,671
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		3,440,000		2.40		1/1/35		2,886,239
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		3,410,000		2.75		7/1/42		2,581,838
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		1,270,000		2.90		1/1/45		947,351
MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		2,300,000		3.00		7/1/43		1,775,061
MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		27,000		3.80		7/1/38		25,265
MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		4,290,000		2.55		7/1/39		3,327,765
MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		5,170,000		2.80		1/1/44		3,902,610
MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		500,000		2.70		7/1/44		368,274
MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		3,130,000		2.75		7/1/44		2,329,058
MN Hsg. Fin. Agy. Rev. 8		975,000		5.35		7/1/36		1,004,150
MN Hsg. Fin. Agy. Rev. 8		985,000		4.60		7/1/39		984,542
MN Hsg. Fin. Agy. Rev.		3,368,949		2.05		12/1/51		2,696,863
MN Hsg. Fin. Agy. Rev.		3,165,000		2.00		7/1/40		2,163,927
MN Hsg. Fin. Agy. Rev.		3,850,000		2.15		7/1/45		2,375,652
MN Hsg. Fin. Agy. Rev.		6,205,000		2.20		1/1/51		3,622,524
MN Hsg. Fin. Agy. Rev.		9,360,000		2.35		7/1/41		6,764,475
MN Hsg. Fin. Agy. Rev.		2,565,000		2.55		1/1/46		1,797,687
MN Hsg. Fin. Agy. Rev.		2,090,000		5.00		7/1/53		2,162,612
MN Hsg. Fin. Agy. Rev.		945,000		6.00		7/1/53		1,013,840
MN Hsg. Fin. Agy. Rev.		980,000		6.25		1/1/54		1,064,059
MN Hsg. Fin. Agy. Rev.		1,225,000		5.10		7/1/42		1,251,677

See accompanying notes to financial statements.
MARCH 31, 2025	29

 

SCHEDULE OF INVESTMENTS

March 31, 2025

Sit Minnesota Tax-Free Income Fund (Continued)

Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)
MN Hsg. Fin. Agy. Rev.		1,675,000		5.15		7/1/45		1,697,393
MN Hsg. Fin. Agy. Rev.		1,285,000		6.00		1/1/53		1,367,349
MN Hsg. Fin. Agy. Rev. (GNMA-FNMA-FHLMC)		990,000		4.60		7/1/45		984,010
								86,218,179
Transportation - 2.0%
Minneapolis & St. Paul Metro Airport Commission Senior Rev.		500,000		5.00		1/1/41		507,176
Minneapolis & St. Paul Metro Airport Commission Sub. Rev. 8		2,500,000		5.25		1/1/49		2,585,222
Minneapolis & St. Paul Metro Airport Commission Sub. Rev. 8		2,500,000		5.00		1/1/47		2,522,685
Minneapolis & St. Paul Metro Airport Commission Sub. Rev. 8		500,000		5.25		1/1/47		512,239
Minneapolis & St. Paul Metro Airport Commission Sub. Rev.		1,750,000		4.00		1/1/54		1,576,772
								7,704,094
Utility - 1.7%
Guam Govt. Waterworks Auth. Rev. 11		2,000,000		5.00		1/1/46		2,008,890
MN Rural Water Fin. Auth. Inc. Rev.		500,000		4.38		4/1/25		500,000
Rochester Electric Utility Rev.		500,000		5.00		12/1/42		510,209
Southern Minnesota Municipal Power Agency		1,000,000		5.00		1/1/41		1,011,364
Southern Minnesota Municipal Power Agency		650,000		5.00		1/1/46		656,037
St. Paul Port Auth. Rev. 8		750,000		5.25		10/1/42		760,892
St. Paul Port Auth. Rev.		650,000		5.00		10/1/46		668,201
Western MN Municipal Power Agy. Rev.		600,000		5.00		1/1/35		608,337
								6,723,930
Total Municipal Bonds (cost: $428,395,758)								368,883,923
	Quantity
Investment Companies - 0.3%
Nuveen Minnesota Quality Municipal Income Fund (NMS)		97,095						1,165,383
Total Investment Companies (cost: $1,332,240)								1,165,383
Total Investments in Securities - 95.0% (cost: $429,727,998)								370,049,306
Other Assets and Liabilities, net - 5.0%								19,280,468
Net Assets - 100.0%								$389,329,774

See accompanying notes to financial statements.
30	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

1 Variable rate security. Rate disclosed is as of March 31, 2025. 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.

2 Security considered illiquid by the Investment Adviser. The total value of such securities as of March 31, 2025 was $2,692,250 and represented 0.7% of net assets.

4 144A Restricted Security. The total value of such securities as of March 31, 2025 was $7,665,195 and represented 2.0% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

5 The issuer is in default of interest or principal payments, or other debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2025 was $2,692,250 and represented 0.7% of net assets.

8 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 March 31, 2025, 4.6% of net assets in the Fund was invested in such securities.

9 Municipal Lease Security. The total value of such securities as of March 31, 2025 was $9,319,285 and represented 2.4% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

11 The Fund may invest in obligations issued by U.S. territories, for example Guam, Puerto Rico, and Virgin Islands. The total value of such securities as of March 31, 2025 was $9,072,631 and represented 2.3% of net assets.

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

Short futures contracts outstanding as of March 31, 2025 were as follows:

Type	Contracts	Expiration    Date	Notional Amount ($)			Value/ Unrealized Appreciation   (Depreciation) ($)
Short Futures: 10
U.S. Treasury Long Bond	155	June 2025		(18,178,594	)		(386,286	)
U.S. Treasury 5-Year	230	June 2025		(24,875,938	)		(366,942	)
U.S. Treasury 10-Year	306	June 2025		(34,032,937	)		(632,086	)
							(1,385,314	)

10 The amount of $8,000,000 in cash was segregated with the broker to cover margin requirements for derivative transactions as of March 31, 2025.

A summary of the levels for the Fund’s investments as of March 31, 2025 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted   Prices ($)			Level 2 Other significant  observable inputs ($)		Level 3 Significant  unobservable inputs ($)		Total ($)
Assets
Municipal Bonds		—			368,883,923		—		368,883,923
Investment Companies		1,165,383			—		—		1,165,383
Total:		1,165,383			368,883,923		—		370,049,306
Liabilities
Futures		(1,385,314	)		—		—		(1,385,314	)

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

See accompanying notes to financial statements.
MARCH 31, 2025	31

 

STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2025

	Sit U.S. Government Securities Fund		Sit Quality Income Fund		Sit Tax-Free Income Fund		Sit Minnesota Tax-Free Income Fund
ASSETS
Investments in securities, at identified cost		$222,512,739		$134,279,459		$179,559,627		$429,727,998
Investments in securities, at fair value - see accompanying schedule for detail		$211,726,061		$134,513,277		$144,679,730		$370,049,306
Cash in bank on demand deposit		—		—		7,317,343		9,901,384
Cash collateral held at broker		—		—		6,000,000		8,000,000
Accrued interest and dividends receivable		1,000,869		928,957		2,207,438		4,477,033
Receivable for investment securities sold		—		27,687		—		—
Receivable for Fund shares sold		57,697		178,301		25,253		375,934
Total assets		212,784,627		135,648,222		160,229,764		392,803,657
LIABILITIES
Disbursements in excess of cash balances		—		853		—		—
Payable for investment securities purchased		—		—		2,795,459		989,290
Payable for Fund shares redeemed		500,725		5,202		869,476		719,894
Cash portion of dividends payable to shareholders		42,107		6,469		89,505		112,908
Variation margin on futures contracts		—		—		354,581		1,383,932
Accrued supervisory and administrative fees		95,779		45,961		67,872		200,894
Accrued investment management fees		35,951		23,570		26,924		66,965
Total liabilities		674,562		82,055		4,203,817		3,473,883
Net assets applicable to outstanding capital stock		$212,110,065		$135,566,167		$156,025,947		$389,329,774
Net assets consist of:
Capital (par value and paid-in surplus)		$253,315,591		$141,762,412		$217,150,674		$462,277,688
Total distributable earnings (loss), including unrealized appreciation (depreciation)		(41,205,526)		(6,196,245)		(61,124,727)		(72,947,914)
		$212,110,065		$135,566,167		$156,025,947		$389,329,774
Outstanding shares:
Class S Shares (Class S)*		14,908,695		2,326,047		11,158,590		41,901,554
Class Y Shares (Class Y)*		5,651,005		11,811,520		7,004,131		—
Net assets applicable to outstanding shares:
Net Assets (Class S)*		$153,834,070		$22,280,970		$95,857,780		$389,329,774
Net Assets (Class Y)*		58,275,995		113,285,197		60,168,167		—
Net asset value per share of outstanding capital stock:
Net Assets Value (Class S)*		$10.32		$9.58		$8.59		$9.29
Net Assets Value (Class Y)*		10.31		9.59		8.59		—

* Sit U.S. Government Securities Fund, Sit Quality Income Fund and Sit Tax-Free Income Fund offer multiple share classes (S and Y). Sit Minnesota Tax-Free Income Fund offers a single share class.

See accompanying notes to financial statements.
32	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

STATEMENTS OF OPERATIONS

Year Ended March 31, 2025

	Sit U.S. Government Securities Fund		Sit Quality Income Fund		Sit Tax-Free Income Fund		Sit Minnesota Tax-Free Income Fund
Investment income:
Income:
Dividends		—		—		$420,267		$55,127
Interest		$10,237,798		$6,504,145		6,638,906		15,705,299
Total income		10,237,798		6,504,145		7,059,173		15,760,426
Expenses (note 4):
Investment management fee		450,915		284,736		320,223		797,437
Supervisory and administrative fee		1,208,738		519,194		805,361		2,392,309
Total expenses		1,659,653		803,930		1,125,584		3,189,746
Less fees and expenses waived by investment adviser		—		(27,876)		—		—
Total net expenses		1,659,653		776,054		1,125,584		3,189,746
Net investment income		8,578,145		5,728,091		5,933,589		12,570,680
Realized and unrealized gain (loss):
Net realized gain (loss) on investments		(4,170,561)		(505,976)		(4,765,305)		(4,759,952)
Net realized gain (loss) on futures		—		(85,678)		502,951		1,635,876
Net change in unrealized appreciation (depreciation) on investments		7,225,489		2,103,524		3,507,088		(3,414,411)
Net change in unrealized appreciation (depreciation) on futures		—		15,636		(140,182)		(690,505)
Net gain (loss)		3,054,928		1,527,506		(895,448)		(7,228,992)
Net increase (decrease) in net assets resulting from operations		$11,633,073		$7,255,597		$5,038,141		$5,341,688

	See accompanying notes to financial statements.
FINANCIAL STATEMENTS AND OTHER INFORMATION	33

 

STATEMENTS OF CHANGES IN NET ASSETS

	Sit U.S. Government Securities Fund
	Year Ended   March 31, 2025			Year       Ended       March 31, 2024
Operations:
Net investment income		$8,578,145			$10,079,946
Net realized gain (loss) on investments and futures		(4,170,561)			(11,190,435)
Net change in unrealized appreciation (depreciation) of investments and futures		7,225,489			4,712,885
Net increase (decrease) in net assets resulting from operations		11,633,073			3,602,396
Distributions from:
Net investment income and net realized gains
Common shares (Class S)		(6,261,423)			(7,293,135)
Common shares (Class Y)		(2,316,974)			(2,829,577)
Total distributions		(8,578,397)			(10,122,712)
Capital share transactions:
Proceeds from shares sold
Class S Shares		15,387,801			20,177,580
Class Y Shares		9,060,549			11,876,193
Reinvested distributions
Class S Shares		5,773,483			6,807,918
Class Y Shares		2,316,974			2,828,929
Payments for shares redeemed
Class S Shares		(51,781,243)			(106,055,986)
Class Y Shares		(19,107,113)			(39,415,212)
Increase (decrease) in net assets from capital transactions		(38,349,549)			(103,780,578)
Total increase (decrease) in net assets		(35,294,873)			(110,300,894)
Net assets:
Beginning of year		247,404,938			357,705,832
End of year		$212,110,065			$247,404,938
Capital transactions in shares:
Sold
Class S Shares		1,500,690			1,985,070
Class Y Shares		883,322			1,164,099
Reinvested distributions
Class S Shares		564,598			671,102
Class Y Shares		226,677			279,148
Redeemed
Class S Shares		(5,061,757)			(10,448,210)
Class Y Shares		(1,876,881)			(3,880,008)
Net increase (decrease)		(3,763,351)			(10,228,799)

See accompanying notes to financial statements.
34	FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Sit Quality Income Fund						Sit Tax-Free Income Fund				Sit Minnesota Tax-Free Income Fund
Year Ended   March 31, 2025				Year Ended   March 31, 2024		Year Ended   March 31, 2025		Year Ended   March 31, 2024		Year Ended   March 31, 2025		Year Ended   March 31, 2024
	$5,728,091				$5,652,404		$5,933,589		$6,465,550		$12,570,680		$13,594,838
	(591,654)				(1,608,587)		(4,262,354)		(12,060,494)		(3,124,076)		(5,018,438)
	2,119,160				1,626,823		3,366,906		13,778,368		(4,104,916)		5,021,073
	7,255,597				5,670,640		5,038,141		8,183,424		5,341,688		13,597,473
	(1,186,566)				(1,342,313)		(3,501,820)		(4,014,442)		(12,570,680)		(13,592,526)
	(4,541,524)				(4,307,744)		(2,378,895)		(2,578,845)		—		—
	(5,728,090)				(5,650,057)		(5,880,715)		(6,593,287)		(12,570,680)		(13,592,526)
	15,669,662				33,030,170		14,892,378		19,018,981		77,720,848		69,229,675
	54,446,285				35,603,788		11,289,682		12,714,745		—		—
	1,162,292				1,302,057		3,167,649		3,668,309		11,117,568		11,949,011
	4,513,640				4,276,482		1,280,180		1,566,067		—		—
	(26,408,373)				(37,138,682)		(21,769,538)		(49,436,791)		(98,263,345)		(142,194,612)
	(48,670,071)				(48,452,739)		(15,882,334)		(68,386,288)		—		—
	713,435				(11,378,924)		(7,021,983)		(80,854,977)		(9,424,929)		(61,015,926)
	2,240,942				(11,358,341)		(7,864,557)		(79,264,840)		(16,653,921)		(61,010,979)
	133,325,225				144,683,566		163,890,504		243,155,344		405,983,695		466,994,674
	$135,566,167				$133,325,225		$156,025,947		$163,890,504		$389,329,774		$405,983,695
	1,649,737				3,508,914		1,702,384		2,258,896		8,172,945		7,424,302
	5,721,540				3,784,819		1,296,842		1,508,593		—		—
	122,265				138,480		363,908		434,225		1,171,643		1,282,330
	473,777				454,099		147,012		185,619		—		—
	(2,782,388)				(3,949,930)		(2,504,067)		(5,850,712)		(10,333,590)		(15,362,397)
	(5,121,254)				(5,135,746)		(1,814,075)		(8,030,855)		—		—
	63,677				(1,199,364)		(807,996)		(9,494,234)		(989,002)		(6,655,765)

MARCH 31, 2025	35

 

FINANCIAL HIGHLIGHTS

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

 

Sit U.S. Government Securities Fund

	Year Ended March 31,
Class S
	2025				2024				2023				2022				2021
Net Asset Value:
Beginning of period		$10.17				$10.35				$10.83				$11.17				$11.26
Operations:
Net investment income 1		0.38				0.33				0.27				0.10				0.14
Net realized and unrealized gains (losses) on investments and written options		0.16				(0.17	)			(0.48	)			(0.34	)			(0.09	)
Total from operations		0.54				0.16				(0.21	)			(0.24	)			0.05
Distributions from:
Net investment income		(0.39	)			(0.34	)			(0.27	)			(0.10	)			(0.14	)
Net Asset Value
End of period		$10.32				$10.17				$10.35				$10.83				$11.17
Total investment return 2		5.38	%			1.64	%			(1.89	%)			(2.16	%)			0.44	%
Net assets at end of period (000’s omitted)		$153,834				$182,150				$266,067				$318,439				$398,821
Ratios: 3
Expenses		0.80	%			0.80	%			0.80	%			0.80	%			0.80	%
Net investment income		3.74	%			3.29	%			2.55	%			0.90	%			1.25	%
Portfolio turnover rate (excluding short-term securities)		25.55	%			18.08	%			56.81	%			40.96	%			39.29	%

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

²  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.

³  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.

36 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

FINANCIAL HIGHLIGHTS

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

 

Sit U.S. Government Securities Fund

	Year Ended March 31,
Class Y
	2025				2024				2023				2022				2021
Net Asset Value:
Beginning of period		$10.17				$10.35				$10.83				$11.17				$11.26
Operations:
Net investment income 1		0.41				0.36				0.29				0.13				0.17
Net realized and unrealized gains (losses) on investments and written options		0.14				(0.17	)			(0.47	)			(0.34	)			(0.09	)
Total from operations		0.55				0.19				(0.18	)			(0.21	)			0.08
Distributions from:
Net investment income		(0.41	)			(0.37	)			(0.30	)			(0.13	)			(0.17	)
Net Asset Value
End of period		$10.31				$10.17				$10.35				$10.83				$11.17
Total investment return 2		5.55	%			1.91	%			(1.67	%)			(1.91	%)			0.72	%
Net assets at end of period (000’s omitted)		$58,276				$65,255				$91,639				$109,305				$128,449
Ratios: 3
Expenses		0.55	%			0.55	%			0.55	%			0.55	%			0.55	%
Net investment income		3.99	%			3.54	%			2.80	%			1.14	%			1.44	%
Portfolio turnover rate (excluding short-term securities)		25.55	%			18.08	%			56.81	%			40.96	%			39.29	%

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

²  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.

³  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.

MARCH 31, 2025 37

 

FINANCIAL HIGHLIGHTS

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

 

Sit Quality Income Fund

	Year Ended March 31,
Class S
	2025				2024				2023				2022				2021
Net Asset Value:
Beginning of period		$9.46				$9.46				$9.98				$10.04				$9.82
Operations:
Net investment income 1		0.40				0.37				0.28				0.15				0.10
Net realized and unrealized gains (losses) on investments,written options and futures		0.12				0.01				(0.33	)			(0.05	)			0.22
Total from operations		0.52				0.38				(0.05	)			0.10				0.32
Distributions from:
Net investment income		(0.40	)			(0.38	)			(0.29	)			(0.15	)			(0.10	)
From net realized gains		—				—				(0.18	)			(0.01	)			—
Total distributions		(0.40	)			(0.38	)			(0.47	)			(0.16	)			(0.10	)
Net Asset Value
End of period		$9.58				$9.46				$9.46				$9.98				$10.04
Total investment return 2		5.66	%			4.05	%			(0.47	%)			0.92	%			3.32	%
Net assets at end of period (000’s omitted)		$22,281				$31,574				$34,440				$135,246				$108,794
Ratios: 3
Expenses (without waiver)		0.90	%4			0.90	%4			0.90	%			0.90	%			0.90	%
Expenses (with waiver)		0.80	%4			0.80	%4			0.80	%			—				—
Net investment income (without waiver)		4.16	%			3.87	%			2.76	%			1.51	%			1.05	%
Net investment income (with waiver)		4.26	%			3.97	%			2.86	%			—				—
Portfolio turnover rate (excluding short-term securities)		59.03	%			89.98	%			109.93	%			63.03	%			77.96	%

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

²  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.

³  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.

⁴  Total Fund expenses are limited to 0.90% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.

38 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

FINANCIAL HIGHLIGHTS

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

 

Sit Quality Income Fund

Class Y	Year Ended March 31,
	2025			2024			20231
Net Asset Value:
Beginning of period		$9.48			$9.48			$9.97
Operations:
Net investment income 2		0.43			0.40			0.32
Net realized and unrealized gains (losses) on investments, written options and futures		0.11			—			(0.32	)
Total from operations		0.54			0.40			–
Distributions from:
Net investment income		(0.43	)		(0.40	)		(0.31	)
From net realized gains		—			—			(0.18	)
Total distributions		(0.43	)		(0.40	)		(0.49	)
Net Asset Value
End of period		$9.59			$9.48			$9.48
Total investment return 3		5.82	%		4.42	%		(0.11	%)
Net assets at end of period (000’s omitted)		$113,285			$101,751			$110,243
Ratios: 4
Expenses		0.55	%		0.55	%		0.55	%
Net investment income		4.52	%		4.24	%		3.28	%
Portfolio turnover rate (excluding short-term securities)		59.03	%		89.98	%		109.93	%

¹  The inception date of Class Y shares was March 31, 2022.

²  The net investment income per share is based on average shares outstanding for the period.

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.

MARCH 31, 2025 39

 

FINANCIAL HIGHLIGHTS

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

 

Sit Tax-Free Income Fund

Class S	Year Ended March 31,
	2025			2024			2023			2022			2021
Net Asset Value:
Beginning of period		$8.64			$8.54			$9.20			$9.91			$9.56
Operations:
Net investment income 1		0.31			0.30			0.27			0.27			0.29
Net realized and unrealized gains (losses) on investments and futures		(0.05	)		0.10			(0.66	)		(0.71	)		0.35
Total from operations		0.26			0.40			(0.39	)		(0.44	)		0.64
Distributions from:
Net investment income		(0.31	)		(0.30	)		(0.27	)		(0.27	)		(0.29	)
Net Asset Value
End of period		$8.59			$8.64			$8.54			$9.20			$9.91
Total investment return 2		3.03	%		4.88	%		(4.17	%)		(4.62	%)		6.73	%
Net assets at end of period (000’s omitted)		$95,858			$100,185			$126,041			$185,151			$348,230
Ratios: 3
Expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		3.61	%		3.54	%		3.18	%		2.68	%		2.92	%
Portfolio turnover rate (excluding short-term securities)		26.81	%		21.77	%		15.05	%		20.78	%		21.22	%

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

²  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.

³  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.

40 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

FINANCIAL HIGHLIGHTS

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

 

Sit Tax-Free Income Fund

Class Y	Year Ended March 31,						Period Ended  March 31, 2022 1
	2025		2024		2023
Net Asset Value:
Beginning of period		$8.64		$8.54		$9.20		$10.04
Operations:
Net investment income 2		0.34		0.32		0.30		0.24
Net realized and unrealized gains (losses) on investments and futures		(0.06)		0.11		(0.67)		(0.84)
Total from operations		0.28		0.43		(0.37)		(0.60)
Distributions from:
Net investment income		(0.33)		(0.33)		(0.29)		(0.24)
Net Asset Value
End of period		$8.59		$8.64		$8.54		$9.20
Total investment return 3		3.29%		5.13%		(3.93%)		(6.06%)
Net assets at end of period (000’s omitted)		$60,168		$63,705		$117,115		$169,263
Ratios: 4
Expenses		0.55%		0.55%		0.55%		0.55%
Net investment income		3.86%		3.79%		3.43%		3.57%
Portfolio turnover rate (excluding short-term securities)		26.81%		21.77%		15.05%		20.78%

¹  The inception date of Class Y shares was June 1, 2021.

²  The net investment income per share is based on average shares outstanding for the period.

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.

MARCH 31, 2025 41

 

FINANCIAL HIGHLIGHTS

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

 

Sit Minnesota Tax-Free Income Fund

	Year Ended March 31,
	2025			2024			2023			2022			2021
Net Asset Value:
Beginning of period		$9.47			$9.43			$9.94			$10.68			$10.37
Operations:
Net investment income 1		0.30			0.29			0.27			0.27			0.30
Net realized and unrealized gains (losses) on investments and futures		(0.18	)		0.04			(0.49	)		(0.74	)		0.31
Total from operations		0.12			0.33			(0.22	)		(0.47	)		0.61
Distributions from:
Net investment income		(0.30	)		(0.29	)		(0.27	)		(0.27	)		(0.30	)
From net realized gains		—			—			(0.02	)		—			—
Total distributions		(0.30	)		(0.29	)		(0.29	)		(0.27	)		(0.30	)
Net Asset Value
End of period		$9.29			$9.47			$9.43			$9.94			$10.68
Total investment return 2		1.24	%		3.64	%		(2.08	%)		(4.56	%)		5.94	%
Net assets at end of period (000’s omitted)		$389,330			$405,984			$466,995			$628,164			$680,301
Ratios: 3
Expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		3.15	%		3.15	%		2.90	%		2.50	%		2.83	%
Portfolio turnover rate (excluding short-term securities)		10.29	%		5.34	%		8.50	%		20.82	%		12.04	%

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

²  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.

³  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.

42 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

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MARCH 31, 2025 43

 

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2025

 

(1) Organization

The Sit Mutual Funds covered by this report are Sit U.S. Government Securities Fund, Sit Quality Income Fund, Sit Tax-Free Income Fund and Sit Minnesota Tax-Free Income 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 (except Sit Minnesota Tax-Free Income Fund which is non-diversified), open-end management investment companies, or series thereof. The Sit Quality Income Fund, Sit Tax-Free Income Fund and Sit Minnesota Tax-Free Income Fund are series funds of Sit Mutual Funds II, Inc. Each Fund has 10 billion authorized shares of capital stock. Shares in the Sit U.S. Government Securities Fund have a par value of $0.01, and shares in other Funds have a par value of $0.001. This report covers the bond funds of the Sit Mutual Funds.

The investment objective for each Fund is as follows:

Fund	Investment Objective
U.S. Government Securities Fund	High current income and safety of principal.
Quality Income Fund	High current income and safety of principal.
Tax-Free Income Fund	High current income that is exempt from federal income tax, consistent with the preservation of capital.
Minnesota Tax-Free Income Fund	High current income that is exempt from federal regular income tax and Minnesota regular personal income tax, consistent with the preservation of capital.

The U.S. Government Securities Fund, Quality Income Fund and Tax-Free Income Fund offer Class S and Class Y shares. Both classes of shares have identical voting, dividend and liquidation rights. 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

Investment securities are carried at fair value based upon closing market quotations on the last business day of the period. 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, the current fair value of certain fixed income securities is provided by an independent pricing service. Fixed income securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from broker-dealers or quotation systems. Securities for which market quotations are not available, such as private placement securities, are valued at fair value according to methods selected in good faith by Sit Investment Associates, Inc. (the “Adviser” or “SIA”) and may include dealer-supplied valuations or other inputs and assumptions that pricing services would typically utilize. Short-term investments of sufficient credit quality with maturities of 60 days or less when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value. Options and futures contracts entered into and held by the Funds are valued at the close of the securities and commodities exchange on which they are traded.

Security transactions are accounted for on the date the securities are purchased or sold. Gains and losses are calculated on the identified cost basis. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. Amortization of long-term bond premium and discount is calculated using the effective interest rate method. Dividends received from closed-end fund holdings are included in Dividend Income and distributions from capital gains, if any, are included in Net Realized Gain (Loss).

44 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

Delivery and payment for securities which have been purchased by the Funds on a forward commitment or when-issued basis can take place two weeks or more after the transaction date. During this period, such securities are subject to market fluctuations and may increase or decrease in value prior to delivery.

The Minnesota Tax-Free Income Fund concentrates its investments in Minnesota, and therefore may have more credit risk related to the economic conditions in the state of Minnesota than a portfolio with broader geographical diversification.

Derivative Instruments

The Funds apply derivative instrument disclosure standards in order to enable investors to understand how and why the Funds use derivatives, how derivatives are accounted for, and how derivative instruments affect the Funds’ financial statements.

To hedge interest rate risk, the Funds used Treasury options and futures traded on a U.S. exchange. Risks of entering into futures and options contracts include the possibility of an illiquid market and that a change in the value of the option may not correlate with changes in the value of the underlying securities.

The premiums paid for the options represent the cost of the investment and the options are valued daily at their closing price. The Funds recognize a realized gain or loss when the option is sold or expired. Option holdings within the Funds, which may include put options and call options, are subject to loss of value with the passage of time, and may experience a total loss of value upon expiration. With options, there is minimal counterparty risk to the Funds since they are exchange traded.

Upon entering into a futures contract, a Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expired. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.

During the year ended March 31, 2025, the average volume of derivative activity, calculated on a quarterly basis, was as follows:

	Average Cost			Average Premium Received			Average Notional Amount
U.S. Government Securities Fund
Purchased put options	$	304,471		$	169,508		$	43,019,100
Quality Income Fund
Purchased put options		17,726			10,406			2,364,300
Treasury futures - short		—			—			7,708,066
Tax-Free Income Fund
Treasury futures - short		—			—			26,379,155
Minnesota Tax-Free Income Fund
Treasury futures - short		—			—			89,110,375

MARCH 31, 2025 45

 

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2025 (Continued)

 

Statement of Assets and Liabilities – Values of derivatives as of March 31, 2025:

	Asset Derivatives Value		Liability Derivatives Value
Interest rate risk:
U.S. Government Securities Fund
Put Options Purchased		$12,5001		—
Tax-Free Income Fund
Treasury futures		—		$354,581	2
Minnesota Tax-Free Income Fund
Treasury futures		—		1,383,932	2

¹  Statement of Assets and Liabilities location: Investments in Securities, at fair value.

²  Statement of Assets and Liabilities location: Variation margin receivable/payable. Includes cumulative appreciation (depreciation) of futures as reported in the Schedule of Investments.

The effect of derivative instruments on the Statement of Operations for the year ended March 31, 2025:

	Amount of Realized		Change in Unrealized
	Gain (Loss) on		Appreciation (Depreciation) on
	Derivatives 3		Derivatives 4
Interest rate risk:
U.S. Government Securities Fund
Purchased put options		($931,415)		$176,303
Quality Income Fund
Purchased put options		(179,372)		36,601
Treasury futures		(85,678)		15,636
Tax-Free Income Fund
Treasury futures		502,951		(140,182	)
Minnesota Tax-Free Income Fund
Treasury futures		1,635,876		(690,505	)

³  Statement of Operations location: Net realized gain (loss) on investments for purchased put options and net realized gain (loss) on futures, respectively.

⁴  Statement of Operations location: Net change in unrealized appreciation (depreciation) on investments for purchased put options and net change in unrealized appreciation (depreciation) on futures, respectively.

Fair Value Measurements

The inputs and valuation techniques used to measure fair value of the Funds’ net assets 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. 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.

46 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

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

At the end of each calendar quarter, management evaluates the Level 2 and 3 assets and liabilities for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Funds’ investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities.

A summary of the levels for the Funds’ investments as of March 31, 2025 is included with the Funds’ schedules of investments.

Federal Taxes

The Funds’ policy is to continue 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. The Funds have recorded in their financial statements the full benefit of their tax positions taken in connection with the Registered Investment Company (RIC) qualification and distribution requirements of the Internal Revenue Code. Therefore, no income tax provision is required. Also, 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.

Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of March 31, 2025, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state of Minnesota 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 March 31, 2025, the gross unrealized appreciation (depreciation) on investments and cost of investments on a tax basis for federal income tax purposes were as follows:

	Unrealized Appreciation		Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)		Cost (Proceeds) of Investments on a Tax Basis
U.S. Government Securities Fund - Investments		$1,197,413		($12,066,218)		($10,868,805)		$222,704,776
Quality Income Fund - Investments		1,257,120		(1,027,432)		229,688		134,283,589
Tax-Free Income Fund - Investments		929,905		(35,910,885)		(34,980,980)		179,660,710
Minnesota Tax-Free Income Fund - Investments		1,609,329		(61,264,292)		(59,654,963)		429,704,269

MARCH 31, 2025 47

 

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2025 (Continued)

 

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains (losses) may also differ from its ultimate characterization for tax purposes. The tax character of distributions paid during the fiscal years ended March 31, 2025 and 2024 was as follows:

Year Ended March 31, 2025:
	Ordinary Income		Tax-Exempt Income		Long Term Capital Gain		Total
U.S. Government Securities Fund		$8,578,397		—		—		$8,578,397
Quality Income Fund		5,728,090		—		—		5,728,090
Tax-Free Income Fund*		72,446		$5,821,475		—		5,893,921
Minnesota Tax-Free Income Fund*		158,431		12,441,636		—		12,600,067

*98.8% and 98.7% of dividends were derived from interest on tax-exempt securities for the Tax-Free Income and Minnesota Tax-Free Income Funds, respectively.

Year Ended March 31, 2024:
	Ordinary Income		Tax-Exempt Income		Long Term Capital Gain		Total
U.S. Government Securities Fund		$10,122,712		—		—		$10,122,712
Quality Income Fund		5,650,057		—		—		5,650,057
Tax-Free Income Fund*		32,379		$6,718,290		—		6,750,669
Minnesota Tax-Free Income Fund*		139,205		13,459,633		—		13,598,838

*99.5% and 99.0% of dividends were derived from interest on tax-exempt securities for the Tax-Free Income and Minnesota Tax-Free Income Funds, respectively.

As of March 31, 2025, the components of distributable earnings on a tax basis were as follows:

	Undistributed		Undistributed					Unrealized
	Ordinary		Tax-Exempt		Accumulated			Appreciation
	Income		Income		Gain (Loss)			(Depreciation)
U.S. Government Securities Fund		$1,432		—		($30,296,046	)		($10,868,805	)
Quality Income Fund		8,439		—		(6,427,903	)		229,688
Tax-Free Income Fund		—		$135,976		(26,190,218	)		(34,980,980	)
Minnesota Tax-Free Income Fund		—		49,570		(13,229,613	)		(59,654,963	)

Net capital loss carryovers and late year losses, if any, as of March 31, 2025, 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 March 31, 2025, were as follows:

	Unlimited Period of Net Capital Loss Carryover				Late Year   Losses   Deferred		Accumulated Capital and Other Losses
	Short-Term		Long-Term
U.S. Government Securities Fund		$5,923,311		$24,372,735		—		$30,296,046
Quality Income Fund	$	2,307,769	$	4,120,134		—	$	6,427,903
Tax-Free Income Fund	$	2,518,897	$	23,671,321		—	$	26,190,218
Minnesota Tax-Free Income Fund		—	$	13,229,613		—	$	13,229,613

48 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

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 are declared daily and paid monthly for the Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds.

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.

Cash Balance Credit Risk

The Funds may place portions of its uninvested cash with financial institutions in the United States, which are insured by the Federal Deposit Insurance Corporation (“FIDC”) up to $250,000 for each account holder. The Funds may be subject to credit risk to the extent amounts on deposit are in excess of the insured limits.

Segment Reporting

In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), with the intent of improving reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment’s profit or loss and assess potential future cash flows for each reportable segment and the entity as a whole, thereby enabling better understanding of how an entity’s segments impact overall performance. The Funds represent a single operating segment. Subject to the oversight and, when applicable, approval of the Board of Trustees, the Adviser acts as the Funds’ chief operating decision maker (“CODM”), assessing performance and making decisions about resource allocation within the Funds. The CODM monitors the operating results as a whole, and the Funds’ long-term strategic asset allocation is determined in accordance with the terms of its prospectus based on a defined investment strategy. The financial information provided to and reviewed by the CODM is consistent with that presented in the Funds’ financial statements. Adoption of the new standard impacted the Funds’ financial statement note disclosures only and did not affect the Funds’ financial position or the results of its operations.

(3) Investment Security Transactions

The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the year ended March 31, 2025, were as follows:

	Purchases				Proceeds
	U.S. Government		Other		U.S. Government		Other
U.S. Government Securities Fund		$56,854,805		—		$91,782,053		$1,457,915
Quality Income Fund		35,129,081		$42,854,473		29,961,579		43,123,297
Tax-Free Income Fund		—		39,219,859		—		43,312,207
Minnesota Tax-Free Income Fund		—		38,885,843		—		46,507,821

MARCH 31, 2025 49

 

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2025 (Continued)

 

(4) Affiliated Fees and Transactions

Investment Adviser

The Funds each have entered into an investment management agreement with Sit Investment Associates Inc., under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. In addition, the Funds have entered into separate supervision and administration agreements with SIA. SIA also is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, and other transaction charges relating to investing activities). The fees charged to each Fund by SIA are based on the average daily net assets of the Funds at the annual rate of:

	Investment Management Fees	Supervisory and Administrative Fees	Total Management Fees
U.S. Government Securities Fund Class S	0.20%	0.60%	0.80%
U.S. Government Securities Fund Class Y	0.20%	0.35%	0.55%
Quality Income Fund Class S1	0.20%	0.60%	0.80%
Quality Income Fund Class Y1	0.20%	0.35%	0.55%
Tax-Free Income Fund Class S	0.20%	0.60%	0.80%
Tax-Free Income Fund Class Y	0.20%	0.35%	0.55%
Minnesota Tax-Free Income Fund	0.20%	0.60%	0.80%

¹  Effective April 1, 2022, the advisory fee for Sit Quality Income Fund was voluntarily reduced from 0.30% to 0.20%; the fees presented reflect the fees net of the Adviser’s voluntary fee waiver.

The fees charged to each Fund by SIA, for the year ended March 31, 2025, were as follows:

	Investment Management Fees	Supervisory and Administrative Fees	Total Management Fees
U.S. Government Securities Fund Class S	$335,678	$1,007,129	$1,342,807
U.S. Government Securities Fund Class Y	115,237	201,609	316,846
Quality Income Fund Class S	83,627	167,253	250,880
Quality Income Fund Class Y	201,109	351,941	553,050
Tax-Free Income Fund Class S	195,960	587,933	783,893
Tax-Free Income Fund Class Y	124,263	217,428	341,691
Minnesota Tax-Free Income Fund	797,437	2,392,309	3,189,746

Transactions with affiliates

The Adviser, affiliates of the Adviser, directors and officers of the Funds as a whole owned the following shares as of March 31, 2025:

	Shares		% Shares Outstanding
U.S. Government Securities Fund Class S		142,980		1.0
U.S. Government Securities Fund Class Y		1,082,303		19.2
Quality Income Fund Class S		963,464		41.4
Quality Income Fund Class Y		11,325,190		95.9
Tax-Free Income Fund Class S		264,088		2.4
Tax-Free Income Fund Class Y		908,410		13.0
Minnesota Tax-Free Income Fund		1,351,713		3.2

50 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

 

(5) Credit Facility

The Funds, together with the 10 equity Sit Mutual Funds managed by SIA, are borrowers in a $20 million credit facility (Credit Facility) maturing November 28, 2025. 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 year ended March 31, 2025, the Funds did not use the Credit Facility.

MARCH 31, 2025 51

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and Board of Directors

Sit U.S. Government Securities Fund and Sit Mutual Funds II, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the Sit U.S. Government Securities Fund and Sit Quality Income Fund, Sit Tax-Free Income Fund, and Sit Minnesota Tax-Free Income Fund (each a Series of Sit Mutual Funds II, Inc.) (collectively, the Funds), including the schedules of investments, as of March 31, 2025, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of March 31, 2025, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2025, by correspondence with custodians, transfer agents and brokers, or by other appropriate auditing procedures when replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/KPMG LLP

We have served as the auditor of one or more Sit Mutual Funds investment companies since 1982.

Columbus, Ohio

May 14, 2025

52 FINANCIAL STATEMENTS AND OTHER INFORMATION

 

FEDERAL TAX INFORMATION (Unaudited)

 

Sit Bond Funds

For corporate shareholders, the percentage of investment income (dividend income and short-term gains, if any), for each of the Funds that qualify for the dividends-received deductions for the period of April 1, 2024 to March 31, 2025 is as follows:

Fund	Percentage
U.S. Government Securities Fund		0.0	%
Quality Income Fund		0.0
Tax-Free Income Fund		0.0
Minnesota Tax-Free Income Fund		0.0

For the year ended March 31, 2025, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions made by the following Funds, the corresponding percentages represent the amount of each distribution which may qualify for the 15% dividend income tax rate.

Fund	Percentage
U.S. Government Securities Fund		0.0	%
Quality Income Fund		0.0
Tax-Free Income Fund		0.0
Minnesota Tax-Free Income Fund		0.0

There were no funds that designated amounts as long-term capital gain dividends during the year ended March 31, 2025. Distributable long-term gains are based on net realized long term gains determined on a tax basis and may differ from such amounts for financial reporting purposes.

For the year ended March 31, 2025, 98.8% and 98.7% of dividends were derived from interest on tax-exempt securities for the Tax-Free Income Fund and Minnesota Tax-Free Income Fund, respectively. This portion of exempt-interest dividends is exempt from federal taxes and should not be included in shareholders’ gross income. Exempt-interest dividends may be subject to state and local taxes. Each shareholder should consult a tax adviser about reporting this income for state and local tax purposes.

MARCH 31, 2025 53

 

ADDITIONAL INFORMATION

PROXY VOTING

A description of the policies and procedures that Sit Investment 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.

54 FINANCIAL STATEMENTS AND OTHER INFORMATION

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MARCH 31, 2025 55

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56 FINANCIAL STATEMENTS AND OTHER INFORMATION

Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

None.

Item 9: Proxy Disclosures for Open-End Management Investment Companies.

None.

Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Fiscal year ended March 31, 2025

Name of Director	Aggregate Renumeration Paid by all 14 of the Sit Mutual Funds
Edward M. Giles	$	50,000
Sidney L. Jones	$	60,000
Bruce C. Lueck	$	50,000
Donald W. Phillips	$	50,000
Barry N. Winslow	$	50,000

Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.

During the Registrant’s most recent fiscal year ended March 31, 2025, the Boards of Directors approved the renewal of the investment management agreements with the Sit Mutual Funds. Below is the Boards’ discussion at the October 29, 2024 board meeting of the material factors and conclusions that formed the basis for the board’s approval.

BOARD RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

At their joint meeting held on October 29, 2024, the Boards of Directors (the “Boards”) of the Sit Tax-Free Income Fund, Sit Minnesota Tax-Free Income Fund, Sit Quality Income Fund and Sit U.S. Government Securities Fund, Inc. (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 Mutual Funds II, Inc., dated November 1, 1992; and Sit U.S. Government Securities Fund, Inc., dated November 1, 1992 (collectively, the “Agreements”).

In advance of the October 29, 2024 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 both 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. In this regard, 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 fixed income securities, the Directors noted that SIA stresses the consistent attainment of superior risk-adjusted returns using a conservative investment management approach that seeks to identify pricing anomalies in the market and manage portfolio duration.

With respect to fixed income securities, the Directors considered that SIA seeks securities with a special emphasis on interest income and significant stability of principal value. They noted that SIA’s investment style seeks to avoid excessive return volatility and generate consistent results over an economic cycle. The Directors also noted that a component of each Fund’s objective is to seek high current income. The Directors reviewed each Fund’s portfolio characteristics and noted that SIA has consistently managed each Fund in accordance with its investment objective. The Directors noted that, because the Funds emphasize interest income, they may at times not rank highly in total return comparisons with funds that pursue different investment objectives.

The Directors discussed SIA’s consistent and well-defined investment process. With respect to fixed income securities, the Directors considered that the SIA’s portfolio managers are responsible for implementing the strategy set forth in SIA’s duration targets and interest rate projections.

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 35 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 $17 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.

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 fixed income funds seeking to maximize income.

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, 1-year, and 5-year periods ended September 30, 2024, 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 for supervisory and administrative fees paid to SIA pursuant to Supervision and Administration Agreements, interest, brokerage commissions, portfolio transaction charges including acquired fund fees and expenses and certain extraordinary expenses. The Directors considered fees paid in prior years and the fees to be paid under the Agreements and Supervision and Administration Agreements, including both before and after fee waivers with respect to Sit Quality Income 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. Generally, the Funds’ expense ratios were higher than or approximated the averages of the applicable category. 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 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.

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), including pursuant to the Supervision and Administration Agreements applicable to the Funds, 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.

Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 13: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 15: 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 since the Registrant last submitted a proxy statement to its shareholders.

Item 16: Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term in defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b) There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 18: Recovery of Erroneously Awarded Compensation.

None.

Item 19: Exhibits.

(a)(1) None.

(a)(2) Not applicable.

(a)(3) A separate certification from the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (certification required by Section 302 of the Sarbanes-Oxley Act of 2002) are attached as an exhibit hereto.

(b) The certification required by Rule 30a-2(b) under the Investment Company Act of 1940 (certification required by Section 906 of the Sarbanes-Oxley Act of 2002) is attached as an exhibit hereto.

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.

Sit Mutual Funds II, Inc.
By (Signature and Title)	/s/ Paul E. Rasmussen
	Paul E. Rasmussen
	VP, Treasurer, CCO & Secretary
	Principal Financial Officer
Date May 16, 2025

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.

By (Signature and Title)	/s/ Paul E. Rasmussen
	Paul E. Rasmussen
	VP, Treasurer, CCO & Secretary
	Principal Financial Officer
Date May 16, 2025

By (Signature and Title)	/s/ Roger J. Sit
	Roger J. Sit
	Chairman and President
	Principal Executive Officer
Date May 16, 2025