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: 811-03343

– – – – – – – –

Sit Large Cap Growth Fund, Inc.

(Exact name of registrant as specified in charter)

80 South Eighth Street

3300 IDS Center

Minneapolis, MN55402

(Address of principal executive offices)

Paul E. Rasmussen, VP Treasurer

Sit Mutual Funds, Inc.

80 South Eighth Street

3300 IDS Center

Minneapolis, MN55402

(Name and address of agent for service)

Registrant’s telephone number, including area code:

(612) 332-3223

Date of fiscal year end: June 30, 2020

Date of reporting period: December 31, 2020

Item 1: Reports to Stockholders

Semi-Annual Report

December 31, 2020

Balanced Fund

Dividend Growth Fund

Global Dividend Growth Fund

Large Cap Growth Fund

ESG Growth Fund

Mid Cap Growth Fund

Small Cap Dividend Growth Fund

Small Cap Growth Fund

International Growth Fund

Developing Markets Growth Fund

         Sit Mutual Funds              

Sit Mutual Funds

STOCK FUNDS SEMI-ANNUAL REPORT

TABLE OF CONTENTS

	Page
Chairman’s Letter		2
Fund Reviews and Schedules of Investments
Balanced Fund		4
Dividend Growth Fund		12
Global Dividend Growth Fund		16
Large Cap Growth Fund		20
ESG Growth Fund		24
Mid Cap Growth Fund		28
Small Cap Dividend Growth Fund		32
Small Cap Growth Fund		36
International Growth Fund		40
Developing Markets Growth Fund		46
Statements of Assets and Liabilities		50
Statements of Operations		52
Statements of Changes in Net Assets		54
Financial Highlights		58
Notes to Financial Statements		72
Expense Example		80
Additional Information		82

This document must be preceded or accompanied by a Prospectus.

CHAIRMAN’S LETTER

February 4, 2021

Dear Fellow Shareholders:

We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Unprecedented global stimulus, totaling almost $30 trillion thus far, helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. However, given elevated equity market valuations, selectivity is now critical as further price gains must be accompanied by improving earnings prospects.

Economic Overview

U.S. health officials predict ready availability of COVID-19 vaccines by midyear, setting the stage for a full reopening of the economy. As the virus is brought under control, a wave of pent-up demand, inventory restocking, and business investment should take hold. Still, potential supply chain bottlenecks, logistical snags, and public resistance represent risks to the inoculation timetable. So far, the U.S. economy has proved relatively resilient post last spring’s stringent lockdowns, as robust demand for home-related and leisure goods has significantly offset a hobbled services sector. A surge in new infections hurt consumer confidence and economic activity, and the prospect of increased restrictions to rein in the outbreak also weighed on the near-term outlook, but confidence has rebounded recently on vaccine progress and an improving economy. While the immunization process is off to a slow start, President Biden has vowed to direct 100 million injections (of a two-dose regimen) in the first 100 days of his administration. We anticipate a challenging first calendar quarter 2021 for COVID-19 caseloads and year-over-year GDP growth (although now buoyed by a fresh $900 billion stimulus package) to give way to improved trends and easy comparisons in the second quarter. In the back half of 2021, the U.S. economy may very well be hitting on all cylinders, assuming no huge delays in vaccine delivery. The services sector, which contributes more than 75% to GDP from a production standpoint, represents the largest source of potential upside as social distancing restrictions end.

We expect some upward pressure on inflation, which has edged higher during the pandemic, as more people become vaccinated and the economy reopens. The CPI (Consumer Price Index) will likely rise above the Federal Reserve’s previously stated target of +2.0 percent by midyear, considering the “easy” comparison to the depressed prices of the previous summer. Nonetheless, we expect the increase in inflation to be a relatively short-term phenomenon, lasting 12 to 18 months. As the economy normalizes and pent-up demand subsides, we believe inflation pressures will naturally subside. We expect longer-term interest rates to rise with higher inflation expectations, which will lead to a steeper yield curve in 2021.

With wins in the two Georgia Senate run-off elections, Democrats now control both chambers of Congress, paving the way for higher federal spending and the party’s other policy priorities. Excluding COVID-19-related aid, President-elect Biden’s agenda calls for additional spending exceeding $7 trillion over

ten years, offset by $4 trillion in higher taxes and other revenue. Yet, razor-thin Senate control suggests moderate Democrats may temper Biden’s more ambitious policies. Increased infrastructure spending, which has bipartisan support, may prove the area with the most upside. The incoming president is seeking nearly $2 trillion in spending immediately to combat the economic downturn and the COVID-19 pandemic, although $1 trillion may be a more realistic expectation. On the negative side, business confidence may be undermined by “re-regulation” and a partial rollback in corporate tax cuts. The timing and magnitude of any change in tax policy will have significant economic and investment implications.

Another round of lockdowns and increased restrictions across Europe, though less severe than those enforced last spring, has helped slow an autumn surge in COVID-19 infections. A notable exception is the U.K., where a more contagious variant has taken hold. The region’s central banks continue to inject considerable liquidity into the financial system to backstop the economies and kickstart growth. In the last ten months alone, the European Central Bank has expanded its balance sheet +50% to €2.3 trillion, versus €2.8 trillion for the prior ten-year period. Manufacturing also continues to recover, thanks in part to solid export demand, with the December manufacturing PMI climbing to a 36-month high in the U.K. and a 32-month high in the Euro Area. Still, with services accounting for more than two-thirds of GDP, continued social distancing restrictions are pummeling economic growth, with double-digit declines in some countries in 2020. Fortunately, despite some recent hiccups, Western Europe appears well-positioned in terms of vaccine readiness and distribution capabilities.

Rock-bottom interest rates, a weakening U.S. dollar, rising commodity prices, and improving global trade are tailwinds for emerging markets. China’s economy has seen a sharp recovery in recent months, driven by increased private consumption and manufacturing capital spending. Notably, China is the only major country to report positive GDP growth for full year 2020. Given the steady economic recovery and vaccine development progress, Beijing stated it would normalize policy as the year progresses. However, insofar as 2021 marks the beginning of the nation’s 14th Five Year Plan and the 100th anniversary of the Chinese Communist Party, growth stability will remain a top priority. Thus, the pace of normalization will likely be gradual and flexible. Other emerging markets have lagged China’s strong rebound, but we remain optimistic that above-trend growth will occur in most Asian economies, particularly South Korea, India, and Singapore.

Despite our positive outlook for the global economy in the year ahead, a word of caution is in order. Governments worldwide have amassed considerable debt, which is being used to cushion the pandemic’s economic blow. Combined with demographic challenges, this will pressure global GDP growth rates over time and make the economies especially vulnerable to unexpected inflation and higher interest rates. This reality will have direct implications for our investment strategy once the cyclical rebound fades, perhaps by the end of 2021.

2 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Equity Strategy

Despite a challenging year for corporate earnings, U.S. stocks surged ahead in 2020 due to a combination of a resilient U.S. economy, massive fiscal and monetary stimulus, and positive vaccine development. To be sure, current valuations broadly reflect further improvement in corporate earnings. We believe stock picking is now critical in determining which companies can generate sufficient earnings growth to justify the valuation rebound.

Rising stock markets are an offshoot of improving prospects for corporate earnings and abundant liquidity. Plus, as central banks employ a low interest rate policy, the T.I.N.A.-effect (i.e., there-is-no-alternative) is pushing some investors out on the risk curve and into equities. The “fear of missing out” return of the day trader has also contributed to positive equity momentum. With the so-called “Fed put” firmly in place and the approval of COVID-19 vaccines, Citigroup’s strategist’s “Panic-Euphoria” model rose to an all-time high in December, surpassing investor euphoria at the height of the 2000 dotcom bubble. While some investor confidence gauges are not as extended, many are near historically peak levels. The maxim, “don’t fight the Fed,” is as true for equities as it is for bonds. However, excess liquidity (and low interest rates) is fostering speculation in some segments of financial markets, which is particularly evident in surging first-day performances of many unprofitable IPOs.

Growth equity indices outperformed their value peers considerably for the year, continuing a trend that has persisted for much of the past decade. Driven by stellar gains in large capitalization technology stocks and stay-at-home beneficiaries, the tech-heavy Russell 1000 Growth^® Index produced a whopping +38.49% return in 2020.The so-called FAANG + M technology stocks (i.e., Facebook, Amazon, Apple, Netflix, Google, and Microsoft) contributed 66% and 52% to the annual returns of the S&P 500^® and Russell 1000 Growth^® indexes, respectively. However, breadth of stock market performance has improved considerably over the last four months of the year on encouraging COVID-19 vaccine developments.

In terms of sector positioning, the prevailing reflationary backdrop has led to a more constructive view on the financial sector, as a combination of higher interest rates, improving credit, and strong asset prices provide an earnings tailwind. We continue to overweight the technology sector but have shifted the emphasis to hardware from software due to significant valuation differentials. We believe select semiconductor and hardware companies will continue to benefit from both cyclical (i.e., business capital investment) and secular trends (e.g., A.I., cloud computing, electric vehicles, 5G communications, Internet of Things, robotics, and autonomous vehicles) that will drive growth for many years to come. We also remain positive on the outlook for industrials, although stock prices are, at least partially, discounting an improvement in most major end markets in 2021. Our holdings in industrial stocks focus on companies that will benefit from potential infrastructure legislation, a clear priority of the Biden administration. Finally,

we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments. Hospital and health-care service companies are poised to see accelerating revenue and profit growth, as utilization increases while the global pandemic abates. Medical device manufacturers will also benefit from accelerating procedure volume growth globally and currency tailwinds.

Sentiment has begun to improve for dividend-paying stocks as fears over dividend cuts have subsided in recent months. As of December 31, 2020, we calculate that over two-thirds of the S&P 500^® stocks currently offer dividend yields above the 10-year Treasury yield. Corporations have been understandably hesitant to increase payouts in 2020. Nonetheless, we expect dividend growth to resume in the near term, particularly for companies with durable business models, solid balance sheets, and strong cash flow. We believe an improving economy in the year ahead will lead to an acceleration in earnings and dividend growth. This, combined with attractive valuations for dividend-paying stocks, should lead to sustained positive sentiment towards dividend-paying equities. Sentiment has also turned noticeably positive for smaller capitalization stocks. This capitalization size has trailed the overall market for the last several years. Yet, with the U.S. economy poised to gain sustainable traction, the stars are aligned for solid small cap stock performance. Small cap stocks are attractively valued and tend to be more direct beneficiaries of economic improvement.

As for international portfolios, we remain positive on equities in China, South Korea, and India, as these countries are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak. The MSCI China Index underperformed the MSCI Emerging Markets and MSCI World indexes in fourth quarter 2020 due to policy tightening concerns and renewed U.S.-China tensions. Nonetheless, we remain constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. We are cautious on Chinese Internet stocks near term given regulation uncertainties but remain optimistic on the segment’s growth prospects in the intermediate to long term. South Korean holdings include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. Our equity holdings in India are positioned in sectors that will profit from an improving domestic economy, i.e., consumer, financials, energy, information services, and industrials.

Roger J. Sit

Chairman, President, CEO and Global CIO

DECEMBER 31, 2020 3

Sit Balanced Fund

OBJECTIVE & STRATEGY

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

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

Fund Performance

The Sit Balanced Fund’s return for the 6-month period ending December 31, 2020 was +15.47%. The S&P 500^® Index return was +22.16% over the period, while the Bloomberg Barclays Aggregate Bond Index gained +1.29%.

Factors that Influenced the Fund’s Performance

Returns for the fixed-income portion of the portfolio exceeded those of the Bloomberg Barclays Aggregate Bond Index for the 6-month period, as the portfolio’s significant income advantage combined with a recovery in the portfolio’s non-government-related positions to drive returns. The dark pessimistic cloud of COVID-19 affecting so many of us was pierced during the second half of the period, as it became increasingly apparent that a vaccine, even multiple vaccines, would be available months sooner than originally predicted. The Federal Reserve anchored short-term rates near zero and indicated they intend to continue to do so in the near term, further boosting bond market investor optimism. Closed-end bond funds, which tend to benefit from “risk-on” market sentiment, experienced significant price appreciation as a result and meaningfully added to returns. The portfolio’s positions in high quality agency mortgage-backed securities under-performed, as they did not experience as much price appreciation as lower quality sectors during the risk-on market environment. In fact, the structured mortgage sectors were the only ones in the portfolio to underperform the benchmark on a relative basis during the period. The outperformance in the equity portion of the Fund during the period was driven heavily by strong stock selection in the health services sector, as well as a large underweight position in the energy minerals sector. Positive stock selection in the electronic technology and consumer durables sectors also boosted returns. Key holdings during the period included HCA Healthcare, Applied Materials, and YETI Holdings. Adversely affecting performance was the Fund’s stock selection in the consumer services and process industries sectors.

Outlook and Positioning

The fixed-income portion of the portfolio is positioned to take advantage of post-COVID-19 economic normalization, which in conjunction with the massive fiscal and monetary stimulus and extensive pent-up demand by consumers is expected to drive a strengthening economy in 2021. We expect non-government holdings to continue to outperform in the near term and have overweighted allocations to closed-end bond funds and corporate bonds and underweighted government bond sectors accordingly. We continue to emphasize main-

HYPOTHETICAL GROWTH OF $10,000

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

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

2 Bloomberg Barclays Aggregate Bond Index is an unmanaged market value-weighted index which measures the performance of investment grade debt securities with maturities of at least one year. This is the primary index for the fixed income portion of the Fund.

taining an income advantage relative to the benchmark, which we expect to drive outperformance over the market cycle. In the equity portion of the Fund, we have maintained a large overweight position in technology companies that should benefit from emerging secular trends, some of which have been accelerated by the COVID-19 pandemic. Additionally, we have been increasing our exposure to early-stage cyclicals (e.g., transports), which should disproportionally benefit more than the market as economic growth improves in during 2021.

As of December 31, 2020, the asset allocation of the Fund was 63% equity, 33% fixed-income, and 4% cash and equivalents.

Roger J. Sit

Bryce A. Doty

Portfolio Managers

4 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS
as of December 31, 2020
	Sit Balanced Fund			S&P 500® Index 1			Bloomberg Barclays Aggregate Bond Index 2
Six Month		15.47	%		22.16	%		1.29	%
One Year		20.74			18.40			7.51
Five Year		11.79			15.22			4.44
Ten Year		9.97			13.89			3.84
Since Inception (12/31/93)		7.71			10.16			5.31

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

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

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

PORTFOLIO SUMMARY
Net Asset Value 12/31/20:	$30.03 Per Share
Net Asset Value 6/30/20:	$26.37 Per Share
Total Net Assets:	$61.2 Million

TOP HOLDINGS

Top Equity Holdings:

1. Apple, Inc.

2. Amazon.com, Inc.

3. Microsoft Corp.

4. Alphabet, Inc.

5. Visa, Inc.

Top Fixed Income Holdings:

1. U.S. Treasury Bond, 0.13%, 4/30/22

2. U.S. Treasury Inflation Indexed Bonds, 0.25%, 2/15/50

3. U.S. Treasury Bill, 0.07%, 1/21/21

4. Putnam Master Intermediate Income Trust

5. Putnam Premier Income Trust

Based on total net assets as of December 31, 2020. Subject to change.

FUND DIVERSIFICATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 5

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Balanced Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 63.2%
Communications - 1.8%
American Tower Corp.		2,975		667,769
Verizon Communications, Inc.		7,100		417,125
				1,084,894
Consumer Durables - 1.1%
YETI Holdings, Inc. *		9,600		657,312
Consumer Non-Durables - 4.0%
Conagra Brands, Inc.		8,900		322,714
Constellation Brands, Inc.		2,275		498,339
Estee Lauder Cos., Inc. - Class A		2,375		632,201
Mondelez International, Inc.		6,300		368,361
NIKE, Inc.		1,775		251,109
PepsiCo, Inc.		2,475		367,042
				2,439,766
Consumer Services - 3.6%
McDonald’s Corp.		2,300		493,534
Starbucks Corp.		4,850		518,853
Visa, Inc.		5,525		1,208,483
				2,220,870
Electronic Technology - 9.4%
Apple, Inc.		18,125		2,405,006
Applied Materials, Inc.		9,300		802,590
Broadcom, Inc.		1,660		726,831
Ciena Corp. *		4,450		235,183
Keysight Technologies, Inc. *		5,100		673,659
NVIDIA Corp.		1,250		652,750
Qualcomm, Inc.		1,625		247,552
				5,743,571
Finance - 4.7%
Ameriprise Financial, Inc.		2,250		437,242
Aon, PLC		1,900		401,413
Chubb, Ltd.		2,950		454,064
First Republic Bank		1,750		257,128
Goldman Sachs Group, Inc.		2,100		553,791
JPMorgan Chase & Co.		3,425		435,215
T Rowe Price Group, Inc.		2,075		314,134
				2,852,987
Health Services - 2.7%
HCA Healthcare, Inc.		3,900		641,394
UnitedHealth Group, Inc.		2,925		1,025,739
				1,667,133
Health Technology - 6.5%
Abbott Laboratories		3,550		388,690
AbbVie, Inc.		2,750		294,662
Bristol-Myers Squibb Co.		7,300		452,819
Bristol-Myers Squibb Co., Rights *		1,025		707
DexCom, Inc. *		1,790		661,799

Name of Issuer	Quantity		Fair Value ($)
Intuitive Surgical, Inc. *		620		507,222
Johnson & Johnson		3,000		472,140
Medtronic, PLC		4,375		512,488
Thermo Fisher Scientific, Inc.		1,525		710,315
				4,000,842
Process Industries - 1.4%
Ecolab, Inc.		1,875		405,675
Sherwin-Williams Co.		600		440,946
				846,621
Producer Manufacturing - 4.1%
3M Co.		875		152,941
Honeywell International, Inc.		2,275		483,892
L3Harris Technologies, Inc.		2,775		524,531
Motorola Solutions, Inc.		1,700		289,102
Northrop Grumman Corp.		500		152,360
Parker-Hannifin Corp.		450		122,584
Safran SA, ADR *		13,950		494,667
Trane Technologies, PLC		2,175		315,723
				2,535,800
Retail Trade - 5.7%
Amazon.com, Inc. *		540		1,758,742
CVS Health Corp.		7,250		495,175
Home Depot, Inc.		2,050		544,521
TJX Cos., Inc.		6,550		447,300
Ulta Beauty, Inc. *		795		228,292
				3,474,030
Technology Services - 16.3%
Accenture, PLC		2,025		528,950
Adobe, Inc. *		1,525		762,683
Alphabet, Inc. - Class A *		620		1,086,637
Alphabet, Inc. - Class C *		205		359,135
Atlassian Corp., PLC *		3,250		760,078
Autodesk, Inc. *		1,600		488,544
DocuSign, Inc. *		525		116,708
Dynatrace, Inc. *		5,975		258,538
Facebook, Inc. *		3,065		837,235
Intuit, Inc.		1,200		455,820
Microsoft Corp.		7,800		1,734,876
Paycom Software, Inc. *		600		271,350
PayPal Holdings, Inc. *		3,300		772,860
salesforce.com, Inc. *		3,950		878,994
ServiceNow, Inc. *		560		308,241
Splunk, Inc. *		1,950		331,286
				9,951,935
Transportation - 1.4%
FedEx Corp.		1,725		447,844
Union Pacific Corp.		2,050		426,851
				874,695

See accompanying notes to financial statements.

6 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity /Principal Amount ($)		Fair Value ($)
Utilities - 0.5%
NextEra Energy, Inc.		4,140		319,401
Total Common Stocks (cost: $22,592,457)				38,669,857
Bonds - 29.4%
Asset-Backed Securities - 1.2%
Bayview Opportunity Master Fund, 2017-SPL1 A, 4.00%, 10/28/64 1, 4		45,442		47,269
Credit Suisse First Boston Mortgage Corp., 2005-AGE1 M3, 1 Mo. Libor + 0.98, 1.12%, 2/25/32 1		269		269
New Century Home Equity Loan Trust, 2005-A A4W, 4.71%, 8/25/35 14		4,037		4,090
OSCAR US Funding Trust VII, LLC, 2017-2A A4, 2.76%, 12/10/24 4		89,909		91,181
Small Business Administration:
2008-20A 1, 5.17%, 1/1/28		31,605		34,360
2007-20H 1, 5.78%, 8/1/27		30,194		32,677
Towd Point Mortgage Trust:
2020-MH1 A1A, 2.18%, 2/25/60 1, 4		163,783		166,700
2019-MH1 A2, 3.00%, 11/25/58 1, 4		100,000		103,321
2019-SJ3 A2, 3.00%, 11/25/59 1, 4		125,000		128,445
2019-SJ1 A1, 3.75%, 11/25/58 1, 4		50,399		50,649
2019-SJ1 A2, 4.17%, 11/25/58 1, 4		100,000		101,939
				760,900
Collateralized Mortgage Obligations - 3.6%
Fannie Mae:
2017-84 JP, 2.75%, 10/25/47		51,371		54,488
2003-34 A1, 6.00%, 4/25/43		32,899		38,193
2004-T1 1A1, 6.00%, 1/25/44		20,324		23,687
1999-17 C, 6.35%, 4/25/29		10,045		11,274
2001-82 ZA, 6.50%, 1/25/32		14,366		16,253
2009-30 AG, 6.50%, 5/25/39		43,400		50,801
2013-28 WD, 6.50%, 5/25/42		42,003		50,313
2004-T1 1A2, 6.50%, 1/25/44		65,486		77,163
2004-W9 2A1, 6.50%, 2/25/44		36,817		43,392
2010-108 AP, 7.00%, 9/25/40		1,600		1,879
2004-T3, 1A3, 7.00%, 2/25/44		6,751		8,094
1993-21 KA, 7.70%, 3/25/23		14,116		14,824
Freddie Mac:
4784 BV, 3.50%, 12/15/32		100,000		102,097
4293 BA, 5.28%, 10/15/47 1		12,235		14,062
2122 ZE, 6.00%, 2/15/29		53,621		61,513
2126 C, 6.00%, 2/15/29		33,702		38,169
2485 WG, 6.00%, 8/15/32		34,288		39,403
2480 Z, 6.00%, 8/15/32		33,403		38,097
2575 QE, 6.00%, 2/15/33		16,534		19,082
2980 QA, 6.00%, 5/15/35		17,842		21,149
2283 K, 6.50%, 12/15/23		3,562		3,773
2357 ZJ, 6.50%, 9/15/31		22,751		25,664
4520 HM, 6.50%, 8/15/45		27,383		32,789

Name of Issuer	Principal Amount ($)		Fair Value ($)
1142 IA, 7.00%, 10/15/21		1,741		1,745
3704 CT, 7.00%, 12/15/36		15,019		18,264
2238 PZ, 7.50%, 6/15/30		12,940		15,454
Government National Mortgage Association:
2015-80 BA, 6.99%, 6/20/45 1		22,007		25,546
2018-147 AM, 7.00%, 10/20/48		74,589		83,442
2018-160 DA, 7.00%, 11/20/48		72,216		81,289
2014-69 W, 7.21%, 11/20/34 1		24,915		29,179
2013-133 KQ, 7.31%, 8/20/38 1		25,443		30,139
2005-74 HA, 7.50%, 9/16/35		7,255		7,774
JP Morgan Mortgage Trust:
2019-HYB1 A5A, 3.00%, 10/25/49 1, 4		108,162		110,819
2020-8 A3, 3.00%, 3/25/51 1, 4		47,191		48,643
2019-8 A4, 3.50%, 3/25/50 1, 4		55,042		55,418
2019-9 A8, 3.50%, 5/25/50 1, 4		125,000		127,932
2020-2 A4, 3.50%, 7/25/50 1, 4		100,251		101,697
New Residential Mortgage Loan Trust: 2018-3A A1, 4.50%, 5/25/58 1, 4		64,249		69,669
PMT Loan Trust: 2013-J1 A11, 3.50%, 9/25/43 1, 4		74,409		75,912
Sequoia Mortgage Trust:
2020-4 A5, 2.50%, 11/25/50 1, 4		94,899		97,487
2019-5 A4, 3.50%, 12/25/49 1, 4		58,301		59,217
2020-2 A4, 3.50%, 3/25/50 1, 4		95,523		97,169
Vendee Mortgage Trust:
2008-1 B, 6.21%, 3/15/25 1		10,478		12,177
1994-2 2, 6.32%, 5/15/24 1		6,426		6,571
Wells Fargo Mortgaged Backed Securities Trust:
2020-5 A3, 2.50%, 9/25/50 1, 4		72,216		74,228
2020-2 A17, 3.00%, 12/25/49 1, 4		83,044		85,283
2020-2 A3, 3.00%, 12/25/49 1, 4		77,392		78,767
				2,179,980
Corporate Bonds - 10.5%
American Airlines, 3.20%, 6/15/28		80,950		78,934
American Financial Group, 5.25%, 4/2/30		200,000		247,490
AXIS Specialty Finance, 3.90%, 7/15/29		100,000		110,270
Bank of America Corp., 3.25%, 10/21/27		100,000		111,909
Booking Holdings, Inc., 4.63%, 4/13/30		150,000		186,387
British Airways 2013-1 Class A Pass Through Trust, 4.63%, 6/20/24 4		187,454		186,407
Burlington Resources, LLC, 7.40%, 12/1/31		50,000		74,848
Cabot Corp., 3.40%, 9/15/26		183,000		198,069
Cadence BanCorp. (Subordinated), 3 Mo. Libor + 4.66, 4.88%, 3/11/25 1, 4		200,000		198,019
Canadian Pacific Railway Co., 7.13%, 10/15/31		100,000		148,105
Charles Schwab Corp., 3.25%, 5/22/29		100,000		114,813
Charles Stark Draper Laboratory, Inc., 4.39%, 9/1/48		100,000		120,684
CNO Financial Group, Inc., 5.25%, 5/30/29		100,000		120,725

See accompanying notes to financial statements.

DECEMBER 31, 2020 7

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Balanced Fund (Continued)

Name of Issuer	Principal Amount ($)		Fair Value ($)
Comerica, Inc., 4.00%, 2/1/29		150,000		178,700
Cox Communications, Inc., 8.38%, 3/1/39 4		100,000		172,248
Delta Air Lines 2015-1 Class A Pass Through Trust, 3.88%, 7/30/27		156,592		160,408
Delta Air Lines, Inc./SkyMiles, 4.75%, 10/20/28 4		200,000		218,302
Doric Nimrod Air Alpha 2013-1 Trust, 5.25%, 5/30/23 4		28,899		27,004
Doric Nimrod Air Finance Alpha 2012-1 Trust, 5.13%, 11/30/22 4		21,052		19,913
Duke Energy Florida, LLC, 2.54%, 9/1/29		50,000		54,065
Entergy Louisiana, LLC, 4.95%, 1/15/45		150,000		165,532
Equifax, Inc., 6.90%, 7/1/28		150,000		195,897
Fidus Investment Corp., 4.75%, 1/31/26		100,000		102,055
Flex, Ltd., 4.88%, 5/12/30		200,000		240,470
Fulton Financial Corp. (Subordinated), 4.50%, 11/15/24		150,000		166,099
Georgia-Pacific, LLC, 7.38%, 12/1/25		100,000		130,358
ITT, LLC, 7.40%, 11/15/25		25,000		31,616
Johnson & Johnson, 3.55%, 3/1/36		150,000		185,244
JPMorgan Chase & Co., 8.75%, 9/1/30		100,000		148,811
Lincoln National Corp., 7.00%, 6/15/40		100,000		153,007
Mercury General Corp., 4.40%, 3/15/27		100,000		110,734
Northern Trust Corp. (Subordinated), 3 Mo. Libor + 1.13, 3.38%, 5/8/32 1		150,000		164,475
Phillips 66, 2.15%, 12/15/30		50,000		50,759
Principal Financial Group, Inc., 3 Mo. Libor + 3.04, 3.27%, 5/15/55 1		100,000		96,000
Principal Life Global Funding, 6.13%, 10/15/33 4		100,000		145,149
Schlumberger Investment SA, 2.65%, 6/26/30		150,000		160,136
Security Benefit Life Insurance Co. (Subordinated), 7.45%, 10/1/33 4		100,000		102,363
Simon Property Group LP, 2.45%, 9/13/29		150,000		157,564
Southwest Airlines Co., 2.63%, 2/10/30		185,000		188,301
Spirit Airlines 2015-1A Trust, 4.10%, 4/1/28		123,916		117,793
Union Pacific Railroad Co., 2014-1 Pass Through Trust, 3.23%, 5/14/26		119,040		131,380
United Airlines 2013-1 Class A Pass Through Trust, 4.30%, 8/15/25		175,701		177,454
United Airlines 2015-1 Class A Pass Through Trust, 3.70%, 12/1/22		125,000		123,878
Unum Group, 4.50%, 12/15/49		25,000		26,344
Wachovia Corp., (Subordinated), 7.57%, 8/1/26 14		100,000		131,704
Webster Financial Corp., 4.38%, 2/15/24		125,000		133,729
WestRock MWV, LLC, 7.95%, 2/15/31		100,000		142,779
				6,406,931

Name of Issuer	Principal Amount ($)		Fair Value ($)
Federal Home Loan Mortgage Corporation - 0.2%
6.50%, 2/1/22		1,983		1,998
7.50%, 7/1/29		101,148		118,414
8.00%, 2/1/34		12,109		14,548
8.50%, 9/1/24		5,252		5,316
				140,276
Federal National Mortgage Association - 1.1%
2.68%, 2/1/35		150,000		163,979
5.50%, 10/1/33		67,840		76,920
6.50%, 2/1/24		11,863		12,413
6.50%, 9/1/27		37,996		42,570
6.50%, 6/1/40		98,095		111,478
7.00%, 1/1/32		10,204		11,166
7.00%, 3/1/33		18,611		21,052
7.00%, 12/1/38		35,234		39,235
8.00%, 6/1/24		7,590		8,115
8.00%, 1/1/31		9,976		10,085
8.00%, 2/1/31		17,647		21,993
8.00%, 9/1/37		57,857		71,822
8.43%, 7/15/26		2,443		2,495
8.50%, 10/1/30		22,743		27,120
10.00%, 6/1/31		23,649		26,405
				646,848
Government National Mortgage Association - 0.3%
5.00%, 5/20/48		69,156		76,696
5.75%, 12/15/22		12,928		13,842
6.50%, 11/20/38		14,918		16,720
7.00%, 12/15/24		6,997		7,460
7.00%, 11/20/27		10,602		12,156
7.00%, 9/20/29		27,479		31,741
7.00%, 9/20/38		9,980		11,963
7.50%, 4/20/32		19,205		21,726
8.00%, 7/15/24		4,017		4,196
				196,500
Taxable Municipal Securities - 7.4%
Bucks Co. Industrial Dev. Auth., 4.00%, 10/1/21		30,000		30,101
Buffalo State Col. Foundation Hsg. Corp., 2.80%, 11/1/30		100,000		104,075
Colorado Health Fac. Auth., 4.48%, 12/1/40		150,000		157,150
Coventry Local Sch. Dist., 2.20%, 11/1/29		200,000		203,290
Essex Co. Impt. Auth., 3.97%, 8/1/30 4		200,000		199,768
Florida Dev. Fin. Corp., 4.11%, 4/1/50		150,000		152,792
GBG, LLC, 3.50%, 6/1/37 4		150,000		156,653
Great Lakes Water Auth. Sewage Disposal System, 3.51%, 7/1/44		150,000		161,194
Kentucky Higher Edu. Student Loan Corp. (Subordinated), 5.27%, 6/1/36		100,000		105,717
LaGrange Co. Regional Utility Dist., 2.98%, 1/1/40		230,000		232,284

See accompanying notes to financial statements.

8 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Principal Amount ($)/ Quantity		Fair Value ($)
Massachusetts Edu. Auth.:
4.00%, 1/1/32		90,000		91,720
4.41%, 7/1/34		50,000		53,968
MI Hsg. Dev. Auth., 3.53%, 6/1/50		65,000		67,293
Middleburg Heights Hosp., 4.07%, 8/1/47		100,000		106,872
MN Hsg. Fin. Agy.:
2.31%, 1/1/27		200,000		205,514
4.73%, 1/1/49		85,000		89,049
ND Hsg. Fin. Agy., 3.70%, 7/1/33		100,000		105,187
NH Business Fin. Auth., 3.82%, 9/1/38		200,000		204,990
NJ Higher Edu. Student Assit. Auth., 3.50%, 12/1/39 8		100,000		104,384
North Hudson Sewer Auth., 2.88%, 6/1/28		150,000		163,484
NY Mortgage Agency, 2.98%, 10/1/40		150,000		151,238
Oregon State Fac. Auth., 3.29%, 10/1/40		100,000		98,945
Public Fin. Auth., 4.23%, 7/1/32		105,000		126,521
So. Dakota Hsg. Dev. Auth., 3.89%, 5/1/32		15,000		15,985
South Carolina Ports Auth., 3.88%, 7/1/55		150,000		156,648
South Carolina Student Loan Corp., 2.92%, 12/1/28		200,000		200,724
St. John’s Co. Indst. Dev. Auth.:
3.80%, 10/1/50		235,000		241,298
4.00%, 8/1/50		200,000		201,034
Texas Children’s Hospital, 3.37%, 10/1/29 17		115,000		130,152
Tulane University, 0.52%, 2/15/36 1		90,000		84,833
Utah Charter Sch. Fin. Auth., 2.40%, 10/15/27		205,000		207,335
Westchester Co. Local Dev. Corp., 3.85%, 11/1/50		200,000		209,044
				4,519,242
U.S. Treasury / Federal Agency Securities - 5.1%
U.S. Treasury Bill, 0.07%, 1/21/21 6		350,000		349,985
U.S. Treasury Bond, 0.13%, 4/30/22		2,000,000		2,000,469
U.S. Treasury Inflation Indexed Bonds:
0.13%, 1/15/30		101,207		112,891
0.13%, 7/15/30		203,118		227,831
0.25%, 2/15/50		354,484		422,283
				3,113,459
Total Bonds (cost: $17,371,402)				17,964,136
Investment Companies - 3.4%
BlackRock Enhanced Government Fund		4,886		65,746
BlackRock Income Trust		23,300		141,431
DoubleLine Opportunistic Credit Fund		10,411		204,576
Duff & Phelps Utility & Corp. Bond Tr., Inc.		8,900		89,178
Eaton Vance Short Duration Div. Inc. Fund		14,000		173,040
Eaton Vance, Ltd. Duration Inc. Fund		15,700		196,721
Franklin, Ltd. Duration, Income Trust		21,600		203,472
MFS Intermediate Income Trust		24,500		93,345
Nuveen Multi-Market Income Fund, Inc.		3,953		28,422

Name of Issue	Quantity		Fair Value ($)
Nuveen Preferred & Income Securities Fund		10,400		101,192
Putnam Master Intermediate Income Trust		67,300		284,679
Putnam Premier Income Trust		60,375		280,744
WA Inflation-Linked Opp. & Inc. Fund		209		2,594
WA Inflation-Linked Sec. & Inc. Fund		15,200		207,328
Total Investment Companies (cost: $1,936,209)				2,072,468
Short-Term Securities - 3.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		2,295,568		2,295,568
(cost: $2,295,568)
Total Investments in Securities - 99.7% (cost: $44,195,636)				61,002,029
Other Assets and Liabilities, net - 0.3%				186,314
Total Net Assets - 100.0%			$	61,188,343

* Non-income producing security.

¹ Variable rate security. Rate disclosed is as of December 31, 2020. 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 December 31, 2020 was $3,197,571 and represented 5.2% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

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.

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 December 31, 2020, 0.2% 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 December 31, 2020.

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.

ADR — American Depositary Receipt

LLC — Limited Liability Company

PLC — Public Limited Company

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 9

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Balanced Fund (Continued)

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)		Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks **		38,669,857		—	—		38,669,857
Asset-Backed Securities		—		760,900	—		760,900
Collateralized Mortgage Obligations		—		2,179,980	—		2,179,980
Corporate Bonds		—		6,406,931	—		6,406,931
Federal Home Loan Mortgage Corporation		—		140,276	—		140,276
Federal National Mortgage Association		—		646,848	—		646,848
Government National Mortgage Association		—		196,500	—		196,500
Taxable Municipal Securities		—		4,519,242	—		4,519,242
U.S. Treasury / Federal Agency Securities		—		3,113,459	—		3,113,459
Investment Companies		2,072,468		—	—		2,072,468
Short-Term Securities		2,295,568		—	—		2,295,568
Total:		43,037,893		17,964,136	—		61,002,029

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

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

See accompanying notes to financial statements.

10 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

[This page intentionally left blank.]

DECEMBER 31, 2020 11

Sit Dividend Growth Fund - Class I and Class S

OBJECTIVE & STRATEGY

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

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

Fund Performance

The Sit Dividend Growth Fund Class I posted a +20.66% return during the 6-month period ending December 31, 2020, compared with the +22.16% return for the S&P 500^® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 2.08% as of 12/31/ 20, compared with 1.62% for the S&P 500^® Index.

Factors that Influenced the Fund’s Performance

Although the Fund posted strong absolute returns over the 6-month period, it underperformed the S&P500^® Index. The key reason was the exceptional returns for non-dividend-paying stocks during the COVID-19 outbreak (i.e., Non-dividend paying stocks in the S&P 500^® were up +27% during the period compared with +20% for dividend-paying stocks.). The two main sectors that led to underperformance during the period were utilities and consumer services. The Fund maintained an overweight position in the utilities sector, as valuations and high dividend yields appeared attractive. However, with investors rotating into more cyclical sectors and away from stay-at-home beneficiaries, the sector lagged the overall market. Regarding the consumer services sector, the Fund’s performance was negatively affected by not owning reopening economy beneficiaries, such as Walt Disney and Starbucks, as well as underweighting the group. Numerous companies in the sector benefitted from an increase in technology investment during the pandemic, but many of them do not pay dividends. Conversely, the Fund benefitted from a large overweight position and stock selection in the electronic technology sector. Many of these companies were beneficiaries of increased technology spending. Key holdings included Qualcomm and Analog Devices. Stock selection in the producer manufacturing sector and an underweight position in the retail trade sector also helped performance.

Outlook and Positioning

Sentiment has begun to improve for dividend-paying stocks, as fears over dividend cuts have subsided in recent months. As of December 31, 2020, we calculate that over two-thirds of S&P 500^® stocks currently offer dividend yields above the 10-year Treasury yield. With the economy beginning to gradually reopen, we expect attention to shift from fears of payout cuts to focus on companies increasing cash flow returns to shareholders as business models stabilize, which will provide a tailwind for dividend-paying stocks. Within this

HYPOTHETICAL GROWTH OF $10,000

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

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

framework, we believe one must be selective, and our focus remains on owning only dividend-paying stocks with strong balance sheets and cash flow generation, with business models that are not susceptible to large-scale disruptions from secular changes. Our favorite sectors include electronic technology and healthcare technology. Electronic technology should benefit from secular market shifts, many of which accelerated during the pandemic as companies invested in technology to facilitate a migration to work from home. In health-care technology, the Fund is focused on companies that will benefit from aging demographics and company-specific innovation. We remain positive on the outlook for industrials, although equity prices are already somewhat discounting an improvement in most major end markets in 2021 We continue to believe that a diversified portfolio of high quality, dividend-paying companies provides investors the opportunity to participate in market gains, while also offering them downside protection if market fundamentals deteriorate.

Roger J. Sit

Kent L. Johnson

Portfolio Managers

12 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS
as of December 31, 2020
	Sit Dividend Growth Fund						S&P 500®
	Class I			Class S			Index 1
Six Month		20.66	%		20.56	%		22.16	%
One Year		13.97			13.67			18.40
Five Year		12.85			12.58			15.22
Ten Year		11.98			11.70			13.89
Since Inception - Class I (12/31/03)		10.14			n/a			9.63
Since Inception - Class S (3/31/06)		n/a			9.60			9.74

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

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

PORTFOLIO SUMMARY
Class I:
Net Asset Value 12/31/20:	$15.21 Per Share
Net Asset Value 6/30/20:	$13.48 Per Share
Total Net Assets:	$193.0 Million
Class S:
Net Asset Value 12/31/20:	$15.13 Per Share
Net Asset Value 6/30/20:	$13.40 Per Share
Total Net Assets:	$29.8 Million
Weighted Average Market Cap:	$361.5 Billion

TOP 10 HOLDINGS

  1. Apple, Inc.

  2. Microsoft Corp.

  3. Johnson & Johnson

  4. Broadcom, Inc.

  5. Verizon Communications, Inc.

  6. Procter & Gamble Co.

  7. Qualcomm, Inc.

  8. Applied Materials, Inc.

  9. PepsiCo, Inc.

10. Medtronic, PLC

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 13

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Dividend Growth Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 99.6%
Communications - 3.4%
American Tower Corp.		14,675		3,293,950
Verizon Communications, Inc.		71,600		4,206,500
				7,500,450
Consumer Durables - 1.0%
Activision Blizzard, Inc.		23,625		2,193,581
Consumer Non-Durables - 8.2%
Coca-Cola Co.		41,075		2,252,553
Conagra Brands, Inc.		56,900		2,063,194
Mondelez International, Inc.		46,700		2,730,549
NIKE, Inc.		12,425		1,757,765
PepsiCo, Inc.		25,925		3,844,678
Procter & Gamble Co.		29,725		4,135,936
Tyson Foods, Inc.		24,425		1,573,947
				18,358,622
Consumer Services - 3.0%
McDonald’s Corp.		14,175		3,041,672
Visa, Inc.		16,740		3,661,540
				6,703,212
Electronic Technology - 19.0%
Analog Devices, Inc.		24,225		3,578,759
Apple, Inc.		104,125		13,816,346
Applied Materials, Inc.		46,225		3,989,218
Broadcom, Inc.		11,925		5,221,361
Garmin, Ltd.		20,250		2,423,115
Keysight Technologies, Inc. *		13,675		1,806,331
Marvell Technology Group, Ltd.		38,525		1,831,478
Qualcomm, Inc.		26,475		4,033,202
Skyworks Solutions, Inc.		18,875		2,885,610
TE Connectivity, Ltd.		21,950		2,657,486
				42,242,906
Finance - 16.1%
American Financial Group, Inc.		34,975		3,064,510
Ameriprise Financial, Inc.		14,025		2,725,478
Aon, PLC		10,675		2,255,307
BlackRock, Inc.		3,600		2,597,544
Chubb, Ltd.		19,950		3,070,704
Everest Re Group, Ltd.		9,600		2,247,264
Goldman Sachs Group, Inc.		12,650		3,335,932
JPMorgan Chase & Co.		25,125		3,192,634
MetLife, Inc.		69,900		3,281,805
Morgan Stanley		51,950		3,560,134
Physicians Realty Trust		69,400		1,235,320
Realty Income Corp.		44,875		2,789,879
Synchrony Financial		70,000		2,429,700
				35,786,211

Name of Issuer	Quantity		Fair Value ($)
Health Services - 2.3%
Quest Diagnostics, Inc.		14,600		1,739,882
UnitedHealth Group, Inc.		9,550		3,348,994
				5,088,876
Health Technology - 13.6%
Abbott Laboratories		27,400		3,000,026
AbbVie, Inc.		31,200		3,343,080
Agilent Technologies, Inc.		13,225		1,567,030
AstraZeneca, PLC, ADR		44,625		2,230,804
Bristol-Myers Squibb Co.		57,175		3,546,565
Johnson & Johnson		37,700		5,933,226
Medtronic, PLC		32,475		3,804,122
Merck & Co., Inc.		34,825		2,848,685
Sanofi, ADR		40,500		1,967,895
Zimmer Biomet Holdings, Inc.		14,225		2,191,930
				30,433,363
Industrial Services - 1.5%
Jacobs Engineering Group, Inc.		13,575		1,479,132
TC Energy Corp.		48,400		1,970,848
				3,449,980
Non-Energy Minerals - 1.1%
BHP Group, Ltd., ADR		37,450		2,446,983
Process Industries - 1.4%
Air Products & Chemicals, Inc.		11,225		3,066,894
Producer Manufacturing - 6.0%
Deere & Co.		8,050		2,165,852
Dover Corp.		19,625		2,477,656
Eaton Corp., PLC		17,900		2,150,506
Honeywell International, Inc.		12,050		2,563,035
Lockheed Martin Corp.		5,365		1,904,468
Parker-Hannifin Corp.		8,050		2,192,900
				13,454,417
Retail Trade - 4.9%
CVS Health Corp.		29,200		1,994,360
Home Depot, Inc.		13,575		3,605,792
Target Corp.		18,625		3,287,871
TJX Cos., Inc.		28,575		1,951,387
				10,839,410
Technology Services - 10.7%
Accenture, PLC		11,300		2,951,673
Alphabet, Inc. - Class A *		1,600		2,804,224
Facebook, Inc. *		8,000		2,185,280
Microsoft Corp.		56,850		12,644,577
Oracle Corp.		49,075		3,174,662
				23,760,416

See accompanying notes to financial statements.

14 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Transportation - 2.7%
FedEx Corp.		11,225		2,914,234
Union Pacific Corp.		15,300		3,185,766
				6,100,000
Utilities - 4.7%
Dominion Resources, Inc.		48,025		3,611,480
Entergy Corp.		35,025		3,496,896
NextEra Energy, Inc.		43,100		3,325,165
				10,433,541
Total Common Stocks (cost: $159,168,745)				221,858,862

Name of Issuer	Quantity		Fair Value ($)
Short-Term Securities - 0.1%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		283,830		283,830
(cost: $283,830)
Total Investments in Securities - 99.7% (cost: $159,452,575)				222,142,692
Other Assets and Liabilities, net - 0.3%				577,684
Total Net Assets - 100.0%			$	222,720,376

* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks **		221,858,862	—	—		221,858,862
Short-Term Securities		283,830	—	—		283,830
Total:		222,142,692	—	—		222,142,692

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

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 15

Sit Global Dividend Growth Fund - Class I and Class S

OBJECTIVE & STRATEGY

The objective of the Sit Global Dividend Growth Fund is to provide current income that exceeds the dividend yield of the MSCI World Index and that grows over a period of years. Secondarily, the Fund seeks long-term capital appreciation.

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

Fund Performance

Sit Global Dividend Growth Fund Class I shares provided a return of +20.65% during the 6-month period ending December 31, 2020, compared with the +23.00% return for the MSCI World Index. Currently, the Fund has a dividend yield of 1.82%, versus a 1.87% dividend yield for the MSCI World Index.

Factors that Influenced the Fund’s Performance

Contributing favorably to performance during the 6-month period were the Fund’s holdings in the technology hardware & equipment (Logitech International and Apple) and consumer services (Starbucks) sectors, its underweight of the household & personal products sector, and its overweight of the diversified financial sector (Partners Group, Macquarie Group, and Goldman Sachs Group). Conversely, underweighting and stock selection (RELX) in the media & entertainment sector, underweighting the automobiles sector, and overweighting the food beverage & tobacco sector detracted from relative performance. The Fund was also hurt by its cash position.

Geographically, the Fund’s exposure to the Euroland (Logitech International and Partners Group) and Asia/Pacific Ex Japan (Broadcom, Atlassian and Macquarie Group) regions added value due to positive stock selection during the 6-month period. However, exposure to the United Kingdom (AstraZeneca, DS Smith, and RELX) and North America (owning Microsoft and Lockheed Martin, and not owning Tesla) regions negatively impacted relative performance, due to both stock selection and geographic allocation.

Outlook and Positioning

We remain constructive on U.S. equities over the intermediate term and think participation in market gains will continue to broaden beyond the large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. Near-term tailwinds for stocks include positive seasonality, elevated cash levels, global stimulus, vaccine deployment, easing financial conditions, and valuations that are attractive relative to bonds. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. With vaccines now being deployed, investors are looking past the current surge in new COVID-19 infections to an acceleration in economic growth by the second half of 2021. We continue to overweight the technology

HYPOTHETICAL GROWTH OF $10,000

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

1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index. This is the Fund’s primary index.

sector but have shifted the emphasis to hardware from software due to valuation concerns. We also remain positive on the outlook for industrials, although stock prices are, at least partially, discounting an improvement in most major end markets in 2021. Finally, we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments.

For non-U.S. equities, we continue to overweight the Euroland and United Kingdom regions, most notably Switzerland, the United Kingdom, and Germany. This positioning is more a function of our confidence in individual stock performances than our expectation for regional outperformance. As a firm, we also remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak.

Roger J. Sit             Raymond E. Sit

Kent L. Johnson

Portfolio Managers

16 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020

	Sit Global
	Dividend						MSCI
	Growth Fund						World
	Class I			Class S			Index 1
Six Months		20.65	%		20.57	%		23.00	%
One Year		16.00			15.77			15.90
Five Year		10.79			10.53			12.19
Ten Year		8.77			8.50			9.87
Since Inception (9/30/08)		9.53			9.26			9.11

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

1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index.

PORTFOLIO SUMMARY

Class I:
Net Asset Value 12/31/20:	$20.17 Per Share
Net Asset Value 6/30/20:	$16.87 Per Share
Total Net Assets:	$37.4 Million
Class S:
Net Asset Value 12/31/20:	$20.17 Per Share
Net Asset Value 6/30/20:	$16.85 Per Share
Total Net Assets:	$3.7 Million
Weighted Average Market Cap:	$367.0 Billion

TOP 10 HOLDINGS

  1. Microsoft Corp.

  2. Apple, Inc.

  3. Logitech International SA

  4. Johnson & Johnson

  5. Accenture, PLC

  6. JPMorgan Chase & Co.

  7. Lonza Group AG

  8. Atlassian Corp., PLC

  9. Abbott Laboratories

10. Nestle SA

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 17

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Global Dividend Growth Fund

Investments are grouped by geographic region.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 98.8%
Asia - 6.6%
Australia - 3.3%
Atlassian Corp., PLC *		3,925		917,940
Macquarie Group, Ltd.		3,900		416,369
				1,334,309
Japan - 2.2%
Astellas Pharma, Inc.		29,900		461,582
Recruit Holdings Co., Ltd.		10,800		451,957
				913,539
Singapore - 1.1%
Singapore Technologies Engineering, Ltd.		158,600		458,423
Europe - 31.8%
France - 0.9%
Safran SA, ADR *		4,900		173,754
Sanofi, ADR		3,800		184,642
				358,396
Germany - 5.0%
adidas AG *		1,385		504,042
Allianz SE, ADR		35,000		862,750
Muenchener Rueckversicherungs AG		650		192,801
Siemens AG		3,200		459,419
Siemens Energy AG *		1,600		58,639
				2,077,651
Ireland - 4.7%
Accenture, PLC		3,675		959,947
Medtronic, PLC		4,575		535,916
Trane Technologies, PLC		2,950		428,222
				1,924,085
Spain - 2.1%
Iberdrola SA		60,400		863,316
Switzerland - 9.9%
Chubb, Ltd.		1,750		269,360
Logitech International SA		11,650		1,132,264
Lonza Group AG		1,450		931,616
Nestle SA		7,525		886,204
Partners Group Holding AG		725		851,689
				4,071,133
United Kingdom - 9.2%
AstraZeneca, PLC, ADR		15,400		769,846
BAE Systems, PLC		74,675		499,153
Diageo, PLC, ADR		4,225		670,972
HomeServe, PLC		33,725		472,719
London Stock Exchange Group, PLC		6,875		846,893
RELX, PLC		21,200		518,757
				3,778,340

Name of Issuer	Quantity		Fair Value ($)
North America - 60.4%
United States - 60.4%
Abbott Laboratories		8,300		908,767
AbbVie, Inc.		3,975		425,921
Alphabet, Inc. - Class A *		450		788,688
Apple, Inc.		19,200		2,547,648
Applied Materials, Inc.		8,175		705,502
Arthur J Gallagher & Co.		3,775		467,005
Bank of America Corp.		16,300		494,053
Broadcom, Inc.		1,825		799,076
Constellation Brands, Inc.		2,750		602,388
CVS Health Corp.		7,600		519,080
Euronet Worldwide, Inc. *		2,800		405,776
FedEx Corp.		1,450		376,449
Goldman Sachs Group, Inc.		1,400		369,194
Home Depot, Inc.		2,550		677,331
Honeywell International, Inc.		3,200		680,640
Johnson & Johnson		6,925		1,089,856
JPMorgan Chase & Co.		7,350		933,964
L3Harris Technologies, Inc.		2,050		387,491
Lockheed Martin Corp.		1,565		555,544
McDonald’s Corp.		1,860		399,119
Microsoft Corp.		12,100		2,691,282
Mondelez International, Inc.		7,100		415,137
Otis Worldwide Corp.		3,875		261,756
PepsiCo, Inc.		5,775		856,432
Scotts Miracle-Gro Co.		2,675		532,700
Sherwin-Williams Co.		800		587,928
Starbucks Corp.		7,975		853,165
T Rowe Price Group, Inc.		4,800		726,672
Thermo Fisher Scientific, Inc.		1,175		547,291
Union Pacific Corp.		4,050		843,291
UnitedHealth Group, Inc.		975		341,913
Verizon Communications, Inc.		12,750		749,062
Waste Management, Inc.		5,900		695,787
WEC Energy Group, Inc.		6,150		565,984
				24,801,892
Total Common Stocks (cost: $24,136,656)				40,581,084

See accompanying notes to financial statements.

18 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Short-Term Securities - 1.2%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		480,100		480,100
(cost: $480,100)
Total Investments in Securities - 100.0% (cost: $24,616,756)				41,061,184
Other Assets and Liabilities, net - 0.0%				19,438
Total Net Assets - 100.0%			$	41,080,622

* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks
Australia		1,334,309	—	—		1,334,309
France		358,396	—	—		358,396
Germany		2,077,651	—	—		2,077,651
Ireland		1,924,085	—	—		1,924,085
Japan		913,539	—	—		913,539
Singapore		458,423	—	—		458,423
Spain		863,316	—	—		863,316
Switzerland		4,071,133	—	—		4,071,133
United Kingdom		3,778,340	—	—		3,778,340
United States		24,801,892	—	—		24,801,892
Short-Term Securities		480,100	—	—		480,100
Total:		41,061,184	—	—		41,061,184

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 19

Sit Large Cap Growth Fund

OBJECTIVE & STRATEGY

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

Fund Performance

The Sit Large Cap Growth Fund’s return was +22.92% during the 6-month period ending December 31, 2020, compared with a +26.12% return for the Russell 1000® Growth Index. The S&P 500® Index return for the period was +22.16%.

Factors that Influenced the Fund’s Performance

The Fund posted strong absolute returns over the period; however, it lagged the Russell 1000® Growth Index due to several factors. The largest detractor to relative performance over the 6-month period was the Fund’s stock selection and underweight position in the consumer durables sector, where the group outperformed the market due to many companies here being stay-at-home beneficiaries. Regarding stock selection in the sector, while our position in YETI Holdings performed well (+60%), not owning Tesla, which was up +227% during the last six months was a major contributor to underperformance. Stock selection in the electronic technology and technology services sectors also contributed, including individual securities Ciena, Intel, and Splunk, which underperformed during the period. Countering this was a combination of strong stock selection and an underweight position in the health technology sector. Positive contributors here included Intuitive Surgical and Thermo Fisher Scientific. The Fund also benefitted from its underweight position in the retail trade sector, where COVID-19-related declines in in-store shopping weighed on the performance of many companies. Finally, stock selection in the producer manufacturing sector benefited performance, where holdings such as Trane Technologies and Honeywell added to returns.

Outlook and Positioning

We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Accordingly, we remain constructive on U.S. equities over the intermediate-term and think participation in market gains will broaden further beyond the large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. The Fund continues to maintain a “barbell” strategy, focused on balancing early-cyclical companies that are likely

HYPOTHETICAL GROWTH OF $10,000

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

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

to be major beneficiaries of an uptick in economic activity (such as transports and financials) with stable, long-term earnings growers that should post above-average growth, regardless of market conditions. This includes sectors with large, secular growth tailwinds, such as companies in the technology sector, which will benefit from accelerating growth in 5G, cloud computing, e-commerce, and software. However, we have shifted our emphasis from software to hardware due to valuation concerns. With the increased attention on infrastructure investment and alternative energy expected under the Biden administration, the Fund is focused on owning companies that stand to benefit from improved sentiment and growth in these end markets. We also favor healthcare companies that should benefit from an aging U.S. population and new technology in high growth areas in the sector.

Roger J. Sit

Ronald D. Sit

Portfolio Managers

20 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020

	Sit Large Cap Growth Fund			Russell 1000® Growth Index 1			Russell     1000®     Index 2
Six Month		22.92	%		26.12	%		24.46%
One Year		33.94			38.49			20.96
Five Year		18.12			21.00			15.60
Ten Year		14.59			17.21			14.01
Since Inception 3 (9/2/82)		10.94			12.25			12.15

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

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

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

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

PORTFOLIO SUMMARY

Net Asset Value 12/31/20:	$54.91 Per Share
Net Asset Value 6/30/20:	$47.07 Per Share
Total Net Assets:	$156.9 Million
Weighted Average Market Cap:	$660.1 Billion

TOP 10 HOLDINGS

  1. Apple, Inc.

  2. Microsoft Corp.

  3. Amazon.com, Inc.

  4. Alphabet, Inc.

  5. Facebook, Inc.

  6. Visa, Inc.

  7. PayPal Holdings, Inc.

  8. UnitedHealth Group, Inc.

  9. salesforce.com, Inc.

10. Broadcom, Inc.

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 21

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Large Cap Growth Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 98.8%
Communications - 1.6%
American Tower Corp.		8,100		1,818,126
Verizon Communications, Inc.		12,025		706,469
				2,524,595
Consumer Durables - 1.6%
YETI Holdings, Inc. *		36,425		2,494,020
Consumer Non-Durables - 5.1%
Constellation Brands, Inc.		7,425		1,626,446
Estee Lauder Cos., Inc. - Class A		9,800		2,608,662
Mondelez International, Inc.		17,900		1,046,613
NIKE, Inc.		5,125		725,034
PepsiCo, Inc.		13,125		1,946,438
				7,953,193
Consumer Services - 5.3%
McDonald’s Corp.		6,650		1,426,957
Starbucks Corp.		19,775		2,115,530
Visa, Inc.		21,600		4,724,568
				8,267,055
Electronic Technology - 19.0%
Apple, Inc.		132,300		17,554,887
Applied Materials, Inc.		38,900		3,357,070
Broadcom, Inc.		7,800		3,415,230
Ciena Corp. *		17,600		930,160
Keysight Technologies, Inc. *		7,875		1,040,209
NVIDIA Corp.		4,825		2,519,615
Qualcomm, Inc.		6,325		963,550
				29,780,721
Finance - 3.5%
Aon, PLC		5,975		1,262,338
Chubb, Ltd.		5,050		777,296
Goldman Sachs Group, Inc.		5,150		1,358,107
JPMorgan Chase & Co.		4,900		622,643
T Rowe Price Group, Inc.		9,725		1,472,268
				5,492,652
Health Services - 2.8%
HCA Healthcare, Inc.		2,200		361,812
UnitedHealth Group, Inc.		11,575		4,059,121
				4,420,933
Health Technology - 8.7%
Abbott Laboratories		15,500		1,697,095
AbbVie, Inc.		10,750		1,151,862
Bristol-Myers Squibb Co.		5,675		352,020
DexCom, Inc. *		6,275		2,319,993
Intuitive Surgical, Inc. *		2,800		2,290,680
Johnson & Johnson		9,400		1,479,372

Name of Issuer	Quantity		Fair Value ($)
Medtronic, PLC		15,825		1,853,740
Thermo Fisher Scientific, Inc.		5,250		2,445,345
				13,590,107
Process Industries - 2.4%
Ecolab, Inc.		7,125		1,541,565
Sherwin-Williams Co.		3,150		2,314,966
				3,856,531
Producer Manufacturing - 3.5%
3M Co.		2,225		388,908
Honeywell International, Inc.		8,425		1,791,998
L3Harris Technologies, Inc.		6,550		1,238,081
Northrop Grumman Corp.		2,700		822,744
Trane Technologies, PLC		8,900		1,291,924
				5,533,655
Retail Trade - 8.7%
Amazon.com, Inc. *		3,150		10,259,330
Home Depot, Inc.		8,425		2,237,848
TJX Cos., Inc.		18,075		1,234,342
				13,731,520
Technology Services - 33.7%
Accenture, PLC		10,200		2,664,342
Adobe, Inc. *		6,725		3,363,307
Alphabet, Inc. - Class A *		625		1,095,400
Alphabet, Inc. - Class C *		4,215		7,384,174
Atlassian Corp., PLC *		10,375		2,426,401
Autodesk, Inc. *		6,900		2,106,846
DocuSign, Inc. *		2,075		461,273
Dynatrace, Inc. *		12,550		543,038
Facebook, Inc. *		21,250		5,804,650
Intuit, Inc.		6,100		2,317,085
Microsoft Corp.		58,900		13,100,538
Paycom Software, Inc. *		2,500		1,130,625
PayPal Holdings, Inc. *		17,600		4,121,920
salesforce.com, Inc. *		16,525		3,677,308
ServiceNow, Inc. *		2,275		1,252,228
Splunk, Inc. *		8,100		1,376,109
				52,825,244
Transportation - 2.3%
FedEx Corp.		5,650		1,466,853
Union Pacific Corp.		10,150		2,113,433
				3,580,286
Utilities - 0.6%
NextEra Energy, Inc.		13,100		1,010,665
Total Common Stocks (cost: $58,992,473)				155,061,177

See accompanying notes to financial statements.

22 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Short-Term Securities - 1.4%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		2,182,250		2,182,250
(cost: $2,182,250)
Total Investments in Securities - 100.2% (cost: $61,174,723)				157,243,427
Other Assets and Liabilities, net - (0.2%)				(385,923	)
Total Net Assets - 100.0%			$	156,857,504

* Non-income producing security.

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks **		155,061,177	—	—		155,061,177
Short-Term Securities		2,182,250	—	—		2,182,250
Total:		157,243,427	—	—		157,243,427

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

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 23

Sit ESG Growth Fund - Class I and Class S

OBJECTIVE & STRATEGY

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

Fund Performance

Sit ESG Growth Fund Class I shares provided a return of +18.75% during the 6-month period ending December 31, 2020, compared with the +23.00% return for the MSCI World Index.

Factors that Influenced the Fund’s Performance

Contributing favorably to performance during the 6-month period were the Fund’s holdings in the technology hardware & equipment (Logitech International and Apple), consumer durables (Nike), and utilities (Iberdrola) sectors. Conversely, underweighting the automobiles and semiconductors sectors, stock selection in the media & entertainment (RELX), health care & services (Baxter International, Terumo, and Boston Scientific), and semiconductors (Intel) sectors, and the Fund’s large cash position detracted from relative performance.

Geographically, the Fund’s exposure to the Euroland (adidas and Safran) region added value due to positive stock selection during the period. However, the Fund’s exposure to the North America (owning Intel, Microsoft, Home Depot, and ConocoPhillips, and not owning Tesla) and United Kingdom (AstraZeneca and RELX) regions negatively impacted relative performance.

Outlook and Positioning

We remain constructive on U.S. equities over the intermediate term and think participation in market gains will continue to broaden beyond large capitalization FAANG + M tech stocks, as the pandemic comes under control and global economies normalize. Near-term tailwinds for stocks include positive seasonality, elevated cash levels, global stimulus, vaccine deployment, easing financial conditions, and valuations that are attractive relative to bonds. However, with investor enthusiasm at historic highs and overall market price-to-earnings multiples now discounting a lot of good news, stocks remain vulnerable to pullbacks on disappointments. With vaccines now being deployed, investors are looking past the current surge in new COVID-19 infections to an acceleration in economic growth by the second half of 2021. We continue to overweight the producer manufacturing and consumer services sectors, in order to take advantage of cyclical recovery as the pandemic hopefully abates. We also continue to overweight the technology sector but have shifted the emphasis to hard-

HYPOTHETICAL GROWTH OF $10,000

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

¹ The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index. This is the Fund’s primary index.

ware from software due to valuation concerns. Finally, we continue to find attractive opportunities in the health care sector, although sentiment will continue to be influenced by political and regulatory developments.

For non-U.S. equities, we continue to overweight the Euroland and United Kingdom regions, most notably Switzerland, the United Kingdom, Germany, and Spain. This positioning is more a function of our confidence in single stock performances than our expectation for regional outperformance. As a firm, we also remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak.

Roger J. Sit

Ronald D. Sit

Portfolio Managers

24 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020
	Sit ESG						MSCI
	Growth Fund						World
	Class I			Class S			Index 1
Six Month		18.75	%		18.56	%		23.00%
One Year		15.90			15.62			15.90
Since Inception (6/30/16)		12.68			12.40			13.45

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

1 The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. It is not possible to invest directly in an index.

PORTFOLIO SUMMARY

Class I:
Net Asset Value 12/31/20:	$16.35 Per Share
Net Asset Value 6/30/20:	$13.85 Per Share
Total Net Assets:	$4.3     Million
Class S:
Net Asset Value 12/31/20:	$16.26 Per Share
Net Asset Value 6/30/20:	$13.78 Per Share
Total Net Assets:	$3.7     Million
Weighted Average Market Cap:	$382.0 Billion

TOP 10 HOLDINGS

  1. Apple, Inc.

  2. Microsoft Corp.

  3. Iberdrola SA, ADR

  4. Alphabet, Inc. - Class A

  5. Allianz SE, ADR

  6. Lonza Group AG

  7. Home Depot, Inc.

  8. Sony Corp., ADR

  9. Visa, Inc.

10. Facebook, Inc.

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 25

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit ESG Growth Fund

Investments are grouped by geographic region.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 98.2%
Asia - 10.2%
Japan - 9.1%
Astellas Pharma, Inc.		6,400		98,800
Keyence Corp.		200		112,343
Recruit Holdings Co., Ltd.		3,100		129,728
Shiseido Co., Ltd.		1,100		76,022
Sony Corp., ADR		1,925		194,618
Terumo Corp.		2,600		108,578
				720,089
Singapore - 1.1%
Singapore Technologies Engineering, Ltd.		31,200		90,182
Europe - 34.4%
France - 1.9%
Safran SA, ADR *		2,750		97,515
Sanofi, ADR		1,125		54,664
				152,179
Germany - 5.8%
adidas AG, ADR *		650		118,944
Allianz SE, ADR		8,800		216,920
Muenchener Rueckversicherungs AG		125		37,077
Siemens AG, ADR		1,175		84,353
				457,294
Ireland - 5.8%
Accenture, PLC		575		150,196
CRH, PLC, ADR		1,200		51,096
Medtronic, PLC		900		105,426
Trane Technologies, PLC		1,065		154,595
				461,313
Spain - 2.9%
Iberdrola SA, ADR		4,050		232,875
Sweden - 1.2%
Telefonaktiebolaget LM Ericsson, ADR		8,275		98,886
Switzerland - 8.7%
Logitech International SA		1,550		150,644
Lonza Group AG		320		205,598
Nestle SA, ADR		1,425		167,865
Novartis AG, ADR		1,800		169,974
				694,081
United Kingdom - 8.1%
AstraZeneca, PLC, ADR		2,950		147,470
BAE Systems, PLC, ADR		2,300		62,445
Coca-Cola European Partners, PLC		2,100		104,643
Diageo, PLC, ADR		785		124,666
HomeServe, PLC		6,525		91,460
RELX, PLC, ADR		4,700		115,902
				646,586

Name of Issuer	Quantity		Fair Value ($)
North America - 53.6%
United States - 53.6%
3M Co.		400		69,916
AbbVie, Inc.		750		80,362
Adobe, Inc. *		360		180,043
Alphabet, Inc. - Class A *		125		219,080
Apple, Inc.		3,600		477,684
Baxter International, Inc.		850		68,204
CVS Health Corp.		1,725		117,818
Ecolab, Inc.		600		129,816
Facebook, Inc. *		700		191,212
FedEx Corp.		280		72,694
Goldman Sachs Group, Inc.		600		158,226
Home Depot, Inc.		745		197,887
Johnson & Johnson		975		153,446
JPMorgan Chase & Co.		1,075		136,600
Lockheed Martin Corp.		185		65,671
Microsoft Corp.		2,000		444,840
NIKE, Inc.		925		130,860
NVIDIA Corp.		175		91,385
PepsiCo, Inc.		875		129,763
salesforce.com, Inc. *		850		189,150
Starbucks Corp.		1,600		171,168
T Rowe Price Group, Inc.		1,175		177,883
TJX Cos., Inc.		1,380		94,240
UnitedHealth Group, Inc.		500		175,340
Verizon Communications, Inc.		2,600		152,750
Visa, Inc.		875		191,389
				4,267,427
Total Common Stocks (cost: $4,905,779)				7,820,912
Short-Term Securities - 1.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		135,143		135,143
(cost: $135,143)
Total Investments in Securities - 99.9% (cost: $5,040,922)				7,956,055
Other Assets and Liabilities, net - 0.1%				7,457
Total Net Assets - 100.0%			$	7,963,512

* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

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

See accompanying notes to financial statements.

26 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

A summary of the levels for the Fund’s investments as of December 31, 2020 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		Other significant	Significant
	Price ($)		observable inputs ($)	unobservable inputs ($)	Total ($)
Common Stocks
France		152,179	—	—		152,179
Germany		457,294	—	—		457,294
Ireland		461,313	—	—		461,313
Japan		720,089	—	—		720,089
Singapore		90,182	—	—		90,182
Spain		232,875	—	—		232,875
Sweden		98,886	—	—		98,886
Switzerland		694,081	—	—		694,081
United Kingdom		646,586	—	—		646,586
United States		4,267,427	—	—		4,267,427
Short-Term Securities		135,143	—	—		135,143
Total:		7,956,055	—	—		7,956,055

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 27

Sit Mid Cap Growth Fund

OBJECTIVE & STRATEGY

The objective of the Sit Mid Cap Growth Fund is to maximize long-term capital appreciation. The Fund pursues this objective by investing at least 80% of its net assets in common stocks that, at the time of purchase, have market capitalizations that fall within the range of companies included in the Russell Midcap® Growth Index during the most recent 12-month period. The Russell Midcap® Growth Index ranged from approximately $510 million to $81 billion during the 12-month period ended December 31, 2020.

Fund Performance

The Sit Mid Cap Growth Fund’s return during the 6-month period ending December 31, 2020 was +28.05%, compared with a +30.18% return for the Russell Midcap® Growth Index. The Russell Midcap® Index increased +28.86% during the period.

Factors that Influenced the Fund’s Performance

The Fund underperformed its benchmark during the latest 6-month period, mostly due to negative stock selection in three sectors. First, stock selection in the technology services sector weighed on performance. The two main contributors to this were the Fund’s overweight position in Splunk and its lack of ownership in Pinterest. Second, in the commercial services sector, the Fund’s performance was hurt by its position in Booz Allen Hamilton, which, while up +13% during the period, lagged the strong market returns during this time horizon. Not owning Trade Desk from this sector also adversely impacted performance. Finally, owning Ciena and not owning Enphase Energy in the electronic technology sector weighed on performance. The Fund’s cash position also negatively impacted performance. On the positive side, large underweight positions and good stock selection in the retail trade and consumer non-durables sectors benefited returns. Key holdings included TJX, Ulta Beauty, and Coca-Cola European Partners. Good stock selection in the producer manufacturing (Trane Technologies, Ametek) and health services (Tenet Healthcare) sectors also added to returns. In addition, other strong performers in their sectors included iRhythm Technologies, Align Technology, HubSpot, and Advanced Micro Devices.

Outlook and Positioning

During the period, midcap stocks outperformed their large cap peers, as sentiment improved with the gradual reopening of the economy and investors felt comfortable taking on higher levels of risk. Unparalleled global stimulus, totaling almost $30 trillion thus far (or over 30% of world GDP), helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. Bolstered by ongoing federal stimulus, pent-up demand unleashed by a return to normalcy could kickstart a virtuous cycle of GDP growth. Global real GDP is poised to expand +5.0% or more in 2021, versus a drop of about -4.3% in 2020. However, the pace of new COVID-19 infections and vaccine availability represent sizable swing factors. The

HYPOTHETICAL GROWTH OF $10,000

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

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

Fund maintains an overweight position in the electronic technology sector, as we believe emerging technologies – including 5G, investment in cloud computing, and artificial intelligence – will prove to be secular growth drivers and will benefit well-positioned firms. This shift looks to have been accelerated by the large work-at-home migration during the pandemic. Additionally, the Fund remains underweight the retail trade sector, as e-commerce and changing consumer buying patterns continue to pressure many established brick-and-mortar businesses in the space. Selective ownership in this sector is focused on companies that have demonstrated resilient business models with the ability to deliver above-average growth.

Roger J. Sit

Kent L. Johnson

Robert W. Sit

Portfolio Managers

28 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020
				Russell
	Sit			Midcap®			Russell
	Mid Cap			Growth			Midcap®
	Growth Fund			Index 1			Index 2
Six Month		28.05	%		30.18	%		28.86%
One Year		33.08			35.59			17.10
Five Year		14.55			18.66			13.40
Ten Year		11.68			15.04			12.41
Since Inception (9/2/82)		11.96			n/a			n/a

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

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

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

PORTFOLIO SUMMARY

Net Asset Value 12/31/20:	$23.41 Per Share
Net Asset Value 6/30/20:	$19.05 Per Share
Total Net Assets:	$213.8 Million
Weighted Average Market Cap:	$31.2   Billion

TOP 10 HOLDINGS

  1. Atlassian Corp., PLC

  2. Teladoc Health, Inc.

  3. Thermo Fisher Scientific, Inc.

  4. DexCom, Inc.

  5. HubSpot, Inc.

  6. PTC, Inc.

  7. Autodesk, Inc.

  8. Scotts Miracle-Gro Co.

  9. Trex Co., Inc.

10. Booz Allen Hamilton Holding Corp.

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 29

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Mid Cap Growth Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 97.5%
Commercial Services - 2.5%
ASGN, Inc. *		13,525		1,129,743
Booz Allen Hamilton Holding Corp.		48,200		4,202,076
				5,331,819
Consumer Durables - 1.8%
YETI Holdings, Inc. *		57,400		3,930,178
Consumer Non-Durables - 0.9%
Coca-Cola European Partners, PLC		40,700		2,028,081
Consumer Services - 4.1%
Chegg, Inc. *		43,600		3,938,388
Nexstar Media Group, Inc.		20,650		2,254,774
Service Corp. International		32,200		1,581,020
Vail Resorts, Inc.		3,300		920,568
				8,694,750
Electronic Technology - 15.2%
Advanced Micro Devices, Inc. *		17,425		1,598,047
Applied Materials, Inc.		35,475		3,061,492
Arista Networks, Inc. *		13,625		3,959,016
Broadcom, Inc.		9,100		3,984,435
Ciena Corp. *		23,300		1,231,405
CMC Materials, Inc.		10,825		1,637,822
Garmin, Ltd.		26,500		3,170,990
Keysight Technologies, Inc. *		23,150		3,057,884
Marvell Technology Group, Ltd.		70,975		3,374,152
MKS Instruments, Inc.		11,750		1,767,788
Monolithic Power Systems, Inc.		5,400		1,977,642
Skyworks Solutions, Inc.		23,900		3,653,832
				32,474,505
Finance - 7.4%
American Financial Group, Inc.		11,800		1,033,916
Ameriprise Financial, Inc.		11,700		2,273,661
Arthur J Gallagher & Co.		18,900		2,338,119
Carlyle Group, Inc.		96,800		3,043,392
First Republic Bank		16,550		2,431,692
Intercontinental Exchange, Inc.		25,300		2,916,837
T Rowe Price Group, Inc.		11,800		1,786,402
				15,824,019
Health Services - 4.7%
Encompass Health Corp.		34,050		2,815,594
Teladoc Health, Inc. *		25,450		5,088,982
Tenet Healthcare Corp. *		50,950		2,034,433
				9,939,009
Health Technology - 15.7%
Align Technology, Inc. *		7,500		4,007,850
BioMarin Pharmaceutical, Inc. *		23,500		2,060,715
Cooper Cos, Inc.		4,250		1,544,110
DexCom, Inc. *		13,050		4,824,846

Name of Issuer	Quantity		Fair Value ($)
Exact Sciences Corp. *		29,650		3,928,328
ICU Medical, Inc. *		4,575		981,292
Insulet Corp. *		11,700		2,990,871
iRhythm Technologies, Inc. *		14,700		3,486,987
Jazz Pharmaceuticals, PLC *		5,700		940,785
Sarepta Therapeutics, Inc. *		22,600		3,853,074
Thermo Fisher Scientific, Inc.		10,550		4,913,979
				33,532,837
Industrial Services - 3.3%
Jacobs Engineering Group, Inc.		27,800		3,029,088
Waste Connections, Inc.		38,950		3,995,102
				7,024,190
Non-Energy Minerals - 2.0%
Trex Co., Inc. *		50,200		4,202,744
Process Industries - 3.3%
Ecolab, Inc.		13,000		2,812,680
Scotts Miracle-Gro Co.		21,800		4,341,252
				7,153,932
Producer Manufacturing - 7.6%
AMETEK, Inc.		24,000		2,902,560
Carlisle Cos., Inc.		17,000		2,655,060
Dover Corp.		27,000		3,408,750
Hubbell, Inc.		11,000		1,724,690
Rockwell Automation, Inc.		6,300		1,580,103
Trane Technologies, PLC		27,050		3,926,578
				16,197,741
Retail Trade - 3.1%
TJX Cos., Inc.		55,175		3,767,901
Ulta Beauty, Inc. *		9,700		2,785,452
				6,553,353
Technology Services - 23.9%
Altair Engineering, Inc. *		24,800		1,442,864
ANSYS, Inc. *		10,750		3,910,850
Aspen Technology, Inc. *		19,900		2,591,975
Atlassian Corp., PLC *		22,900		5,355,623
Autodesk, Inc. *		14,800		4,519,032
Booking Holdings, Inc. *		450		1,002,271
DocuSign, Inc. *		11,050		2,456,415
Dynatrace, Inc. *		65,375		2,828,776
Euronet Worldwide, Inc. *		26,275		3,807,773
GoDaddy, Inc. *		27,075		2,245,871
HubSpot, Inc. *		11,950		4,737,458
Paycom Software, Inc. *		6,100		2,758,725
PTC, Inc. *		39,600		4,736,556
Qualys, Inc. *		7,000		853,090

See accompanying notes to financial statements.

30 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
RingCentral, Inc. *		4,825		1,828,530
Science Applications International Corp.		25,100		2,375,464
Splunk, Inc. *		20,900		3,550,701
				51,001,974
Transportation - 1.2%
Alaska Air Group, Inc.		17,300		899,600
Knight-Swift Transportation Holdings, Inc.		41,600		1,739,712
				2,639,312
Utilities - 0.8%
WEC Energy Group, Inc.		18,900		1,739,367
Total Common Stocks (cost: $92,924,431)				208,267,811

Name of Issuer	Quantity		Fair Value ($)
Short-Term Securities - 2.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		5,813,482		5,813,482
(cost: $5,813,482)
Total Investments in Securities - 100.2% (cost: $98,737,913)				214,081,293
Other Assets and Liabilities, net - (0.2%)				(326,683	)
Total Net Assets - 100.0%				$213,754,610

* Non-income producing security.

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 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		Other significant	Significant
	Price ($)		observable inputs ($)	unobservable inputs ($)	Total ($)
Common Stocks **		208,267,811	—	—		208,267,811
Short-Term Securities		5,813,482	—	—		5,813,482
Total:		214,081,293	—	—		214,081,293

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

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 31

Sit Small Cap Dividend Growth Fund Class I and Class S

OBJECTIVE & STRATEGY

The objective of the Sit Small Cap Dividend Growth Fund is to provide current income that exceeds the Fund’s benchmark index and that grows over a period of years. Secondarily the Fund seeks long-term capital appreciation. The Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in small cap dividend-paying common stocks that have market capitalizations at the time of purchase of up to $3.0 billion, or up to the market capitalization of the largest company included in the Russell 2000® Index measured at the end of the previous twelve months ($13.4 billion as of December 31, 2020). The Fund may invest the balance of its assets in preferred stocks, convertible bonds, U.S. Treasury securities (including Treasury bills, notes and bonds), closed-end investment companies, and master limited partnerships.

Fund Performance

The Sit Small Cap Dividend Growth Fund Class I posted a +28.48% return over the last past 6-months ending December 31, 2020, compared with the +37.85% return for the Russell 2000® Index. The Fund’s gross dividend yield (before deducting Fund expenses) was 1.78% as of 12/31/20, compared with a yield of 1.25% for the Russell 2000® Index.

Factors that Influenced the Fund’s Performance

Contributing to the Fund’s underperformance during the 6-month period were its stocks in the consumer services, producer manufacturing, and retail trade sectors. Many of the best performing stocks in the producer manufacturing sector were non-dividend-paying, alternative energy companies with zero or minimal prospects of paying a dividend in the future. Consequently, our producer manufacturing sector performance was constrained by the Russell 2000® Index’s lack of the type of companies that the Fund seeks to own (i.e., cash flow-generating enterprises that pay dividends), compared to the more speculative constituents in the benchmark. Within the consumer services and retail trade sectors, holdings in Strategic Education, Chegg, and PetMed Express also detracted from performance. Significant underperformance of dividend-paying stocks relative to non-dividend paying stocks also broadly, negatively affected performance over the period (i.e., Dividend-paying stocks in the Russell 2000® Index were up +27% during the period versus +46% for non-dividend payers). Stock selection and a large underweight position in health technology helped to offset some of this underperformance. Key holdings here were iRhythm Technologies and LeMaitre Vascular. Underweighting the lagging energy minerals sector and stock selection in the consumer non-durables sector (Sensient Technologies) also added to performance.

Outlook and Positioning

Small capitalization stocks outperformed their large capitalization peers, with growth significantly outperforming value within the small cap universe, as more speculative, unprofitable companies led the market. Overall, we believe equity returns in the near to intermediate term will be largely driven by earnings growth and that dividend-paying companies will remain attractive in a market shift to fundamentals as the market broadens out. Accordingly, the Fund is overweighted in those sectors where we believe earnings growth will exceed the market average. The Fund’s overweight positions in the

HYPOTHETICAL GROWTH OF $10,000

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

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

electronic technology, commercial services, and producer manufacturing sectors should be helped by easy year-ago comparisons and an expected rebound in economic growth in 2021, as the U.S. economy gradually reopens and vaccination rates increase. Select technology companies should also benefit, as technology capital spending continues to grow, driven by investments in cloud computing and other emerging technologies. Finally, we believe defensive areas of the market with compelling relative valuations, including REITs and select utilities, provide a good hedge to market risks. These risks include historically elevated valuations; the potential of supply chain bottlenecks, logistical snags, public resistance, and new strains that could disturb the COVID-19 inoculation timetable; and continued COVID-19-related economic disruptions. However, given valuation declines during through 2020, these areas look attractive due to both their valuation and their yield advantage to the market and prevailing Treasury yields.

Roger J. Sit	Michael T. Manns
Kent L. Johnson	Robert W. Sit
Portfolio Managers

32 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020
	Sit Small Cap
	Dividend						Russell
	Growth Fund						2000®
	Class I			Class S			Index 1
Six Month		28.48	%		28.36	%		37.85%
One Year		16.20			16.00			19.96
Five Year		10.93			10.65			13.26
Since Inception (3/31/15)		8.15			7.88			9.74

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

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

PORTFOLIO SUMMARY

Class I:
Net Asset Value 12/31/20:	$14.52	Per Share
Net Asset Value 6/30/20:	$11.39	Per Share
Total Net Assets:	$14.8	Million
Class S:
Net Asset Value 12/31/20:	$14.52	Per Share
Net Asset Value 6/30/20:	$11.38	Per Share
Total Net Assets:	$4.7	Million
Weighted Average Market Cap:	$5.8	Billion

TOP 10 HOLDINGS

  1. Monolithic Power Systems, Inc.

  2. MKS Instruments, Inc.

  3. Chegg, Inc.

  4. Scotts Miracle-Gro Co.

  5. Globant SA

  6. Encompass Health Corp.

  7. KBR, Inc.

  8. American Financial Group, Inc.

  9. CMC Materials, Inc.

10. Axis Capital Holdings, Ltd.

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 33

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Small Cap Dividend Growth Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 97.7%
Commercial Services - 4.6%
Booz Allen Hamilton Holding Corp.		3,200		278,976
Brink’s Co.		3,400		244,800
Colliers International Group, Inc.		2,350		209,456
FTI Consulting, Inc. *		1,425		159,201
				892,433
Communications - 0.9%
Shenandoah Telecommunications Co.		3,800		164,350
Consumer Durables - 6.5%
Acushnet Holdings Corp.		3,400		137,836
BRP, Inc.		3,675		242,476
Helen of Troy, Ltd. *		1,075		238,854
MDC Holdings, Inc.		3,750		182,250
National Presto Industries, Inc.		750		66,322
Thor Industries, Inc.		2,300		213,877
YETI Holdings, Inc. *		2,700		184,869
				1,266,484
Consumer Non-Durables - 1.1%
Sensient Technologies Corp.		3,000		221,310
Consumer Services - 6.9%
Chegg, Inc. *		4,900		442,617
Nexstar Media Group, Inc.		2,850		311,192
Service Corp. International		3,800		186,580
Strategic Education, Inc.		2,290		218,306
Vail Resorts, Inc.		690		192,483
				1,351,178
Electronic Technology - 10.6%
CMC Materials, Inc.		2,100		317,730
II-VI, Inc. *		1,275		96,849
MKS Instruments, Inc.		4,300		646,935
Monolithic Power Systems, Inc.		1,975		723,304
Power Integrations, Inc.		3,400		278,324
				2,063,142
Finance - 24.6%
American Financial Group, Inc.		3,675		322,003
Artisan Partners Asset Management, Inc.		6,300		317,142
Axis Capital Holdings, Ltd.		6,300		317,457
Carlyle Group, Inc.		8,075		253,878
CNO Financial Group, Inc.		14,000		311,220
CubeSmart		5,250		176,453
Donegal Group, Inc.		9,500		133,665
Essential Properties Realty Trust, Inc.		7,700		163,240
Evercore Partners, Inc.		2,800		306,992
Hanover Insurance Group, Inc.		1,275		149,073
HCI Group, Inc.		3,600		188,280
Hercules Capital, Inc.		13,100		188,902
Old National Bancorp		9,550		158,148

Name of Issuer	Quantity		Fair Value ($)
People’s United Financial, Inc.		16,325		211,082
Physicians Realty Trust		12,550		223,390
Piper Sandler Cos		2,875		290,088
PROG Holdings, Inc.		3,550		191,238
QTS Realty Trust, Inc.		4,350		269,178
Stifel Financial Corp.		6,000		302,760
STORE Capital Corp.		6,225		211,526
Third Point Reinsurance, Ltd. *		10,150		96,628
				4,782,343
Health Services - 3.1%
Encompass Health Corp.		4,200		347,298
Tenet Healthcare Corp. *		6,400		255,552
				602,850
Health Technology - 6.4%
AtriCure, Inc. *		5,200		289,484
Atrion Corp.		160		102,758
Bio-Techne Corp.		325		103,204
ICU Medical, Inc. *		425		91,158
iRhythm Technologies, Inc. *		1,200		284,652
LeMaitre Vascular, Inc.		4,175		169,088
STERIS, PLC		1,100		208,494
				1,248,838
Industrial Services - 2.8%
EMCOR Group, Inc.		2,400		219,504
KBR, Inc.		10,775		333,271
				552,775
Non-Energy Minerals - 2.6%
AZEK Co., Inc. *		5,700		219,165
Commercial Metals Co.		3,950		81,133
Eagle Materials, Inc.		575		58,276
PotlatchDeltic Corp.		2,810		140,556
				499,130
Process Industries - 5.2%
Huntsman Corp.		4,650		116,901
Neenah, Inc.		2,525		139,683
Olin Corp.		5,050		124,028
Scotts Miracle-Gro Co.		2,100		418,194
Silgan Holdings, Inc.		5,800		215,064
				1,013,870
Producer Manufacturing - 11.0%
AGCO Corp.		925		95,358
Applied Industrial Technologies, Inc.		2,475		193,025
AZZ, Inc.		1,225		58,114
Carlisle Cos, Inc.		1,650		257,697
Crane Co.		2,675		207,740
H&E Equipment Services, Inc.		7,500		223,575
Hubbell, Inc.		1,525		239,105

See accompanying notes to financial statements.

34 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Lincoln Electric Holdings, Inc.		1,350		156,938
MSA Safety, Inc.		1,700		253,963
Oshkosh Corp.		1,175		101,132
Rexnord Corp.		5,250		207,322
Watsco, Inc.		685		155,187
				2,149,156
Retail Trade - 1.9%
Casey’s General Stores, Inc.		1,025		183,086
PetMed Express, Inc.		5,625		180,338
				363,424
Technology Services - 4.1%
Globant SA *		1,625		353,616
ManTech International Corp.		1,800		160,092
Science Applications International Corp.		3,075		291,018
				804,726
Transportation - 3.2%
Knight-Swift Transportation Holdings, Inc.		5,275		220,600
Marten Transport, Ltd.		8,450		145,594
TFI International, Inc.		5,000		257,900
				624,094

Name of Issuer	Quantity		Fair Value ($)
Utilities - 2.2%
Black Hills Corp.		4,000		245,800
Spire, Inc.		2,750		176,110
				421,910
Total Common Stocks (cost: $13,252,842)				19,022,013
Short-Term Securities - 2.5%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		482,965		482,965
(cost: $482,965)
Total Investments in Securities - 100.2% (cost: $13,735,807)				19,504,978
Other Assets and Liabilities, net - (0.2%)				(35,875	)
Total Net Assets - 100.0%			$	19,469,103

* Non-income producing security.

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks **		19,022,013	—	—		19,022,013
Short-Term Securities		482,965	—	—		482,965
Total:		19,504,978	—	—		19,504,978

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

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 35

Sit Small Cap Growth Fund

OBJECTIVE & STRATEGY

The objective of the Sit Small Cap Growth Fund is to maximize long-term capital appreciation. The Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in common stocks of companies with market capitalizations at the time of purchase of up to $3.0 billion, or up to the market capitalization of the largest company included in the Russell 2000® Index measured at the end of the previous twelve months ($13.4 billion as of December 31, 2020).

The Adviser invests in a diversified group of growing small companies it believes exhibit the potential for superior growth. The Adviser believes that a company’s earnings growth is the primary determinant of its potential long-term return and evaluates a company’s potential for above average long-term earnings and revenue growth.

Fund Performance

The Sit Small Cap Growth Fund return was +33.13% over the 6-month period ending December 31, 2020. This compares to the return of +38.88% for the Russell 2000® Growth Index and a +37.85% increase for the Russell 2000® Index.

Factors that Influenced the Fund’s Performance

The majority of the Fund’s underperformance during the period can be explained by its stock selection in the producer manufacturing, consumer services, and electronic technology sectors. Within the producer manufacturing sector, performance was negatively affected by not owning unprofitable renewable energy companies, such as Plug Power and Sunrun, which outperformed more traditional companies. In consumer services, ownership of Strategic Education weighed on performance, as new student enrollment was disrupted by COVID- 19. Owning Ciena and not owning alternative energy company SunPower resulted in negative stock selection within the electronic technology sector. The main positive contributor during the period was the Fund’s stock selection and large underweight position in the health technology sector. Here, the Fund owned companies in the medical device space, such as iRhythm Technologies and Align Technology, that were major beneficiaries from a large rebound in medical/dental procedures caused by COVID-19 shutdowns in the first part of 2020, and companies with unique technology in high growth fields, such as Pacific Biosciences. Stock selection in the process industries and finance sectors also contributed to positive performance.

Outlook and Positioning

Sentiment has turned noticeably positive for smaller capitalization stocks, which have trailed the overall market for several years. Now, with the U.S. economy poised to gain sustainable traction, several factors are aligned for solid small cap stock performance. U.S. small cap stocks are attractively valued and more direct beneficiaries of economic improvement. In addition, investors turn to small capitalization stocks when comfortable taking on more risk. Regarding sector positioning, we expect pro-growth/cyclical areas to continue to outperform the market, as economic growth rebounds in 2021. Transportation, select producer manufacturing, and technology stocks should benefit especially, based on potential for upward earnings inflections. Also, a focus on infrastructure investment within the Biden administration should help sentiment and growth for producer manufacturing stocks. Within technology, we expect investor enthusiasm

HYPOTHETICAL GROWTH OF $10,000

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

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

for a 5G wireless spending cycle to boost select semiconductor companies. Additionally, despite the shock from the COVID-19 outbreak, the U.S. consumer remains in good shape, with sentiment improving from low levels and high savings rates. This should release some pent-up demand. Accordingly, the Fund retains significant overweight positions in the consumer durables and consumer services sectors. We are evaluating renewable energy companies, which should benefit from the new administration’s policies and increasingly effective technology but have astronomically high valuations relative to the broader market. The Fund continues to significantly underweight the health technology sector, as many of the biotech companies in the benchmark Russell 2000® Growth Index depend on debt or equity offerings to fund operations and rely on binary events, such as clinical trials and acquisition potential, to drive stock performance. The Fund maintains a preference for investing in proven, cash-generating companies.

Roger J. Sit                Kent L. Johnson

Robert W. Sit

Portfolio Managers

36 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020

	Sit
	Small Cap		Russell		Russell
	Growth		2000®		2000®
	Fund		Growth Index 1		Index 2
Six Month		33.13%		38.88%		37.85%
One Year		35.93		34.63		19.96
Five Year		13.44		16.36		13.26
Ten Year		11.13		13.48		11.20
Since Inception (7/1/94)		10.88		9.20		9.73

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

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

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

PORTFOLIO SUMMARY

Net Asset Value 12/31/20:	$73.07  Per Share
Net Asset Value 6/30/20:	$56.81  Per Share
Total Net Assets:	$132.2  Million
Weighted Average Market Cap:	$10.6    Billion

TOP 10 HOLDINGS

  1. Monolithic Power Systems, Inc.

  2. Chegg, Inc.

  3. Pacific Biosciences of California, Inc.

  4. Paycom Software, Inc.

  5. YETI Holdings, Inc.

  6. HubSpot, Inc.

  7. iRhythm Technologies, Inc.

  8. Trex Co., Inc.

  9. Teladoc Health, Inc.

10. Scotts Miracle-Gro Co.

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 37

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Small Cap Growth Fund

Investments are grouped by economic sectors.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 97.9%
Commercial Services - 4.4%
ASGN, Inc. *		22,375		1,868,984
Booz Allen Hamilton Holding Corp.		20,000		1,743,600
Colliers International Group, Inc.		12,700		1,131,951
FTI Consulting, Inc. *		8,950		999,894
				5,744,429
Communications - 0.7%
Shenandoah Telecommunications Co.		22,700		981,775
Consumer Durables - 6.8%
Acushnet Holdings Corp.		22,500		912,150
BRP, Inc.		19,150		1,263,517
Helen of Troy, Ltd. *		7,050		1,566,440
Take-Two Interactive Software, Inc. *		6,350		1,319,466
Thor Industries, Inc.		11,200		1,041,488
YETI Holdings, Inc. *		42,350		2,899,704
				9,002,765
Consumer Services - 6.4%
Chegg, Inc. *		37,500		3,387,375
Nexstar Media Group, Inc.		15,225		1,662,418
Service Corp. International		18,700		918,170
Strategic Education, Inc.		9,100		867,503
Vail Resorts, Inc.		5,600		1,562,176
				8,397,642
Electronic Technology - 9.6%
Arista Networks, Inc. *		6,450		1,874,176
Ciena Corp. *		14,150		747,828
CMC Materials, Inc.		8,825		1,335,222
II-VI, Inc. *		8,750		664,650
MKS Instruments, Inc.		15,750		2,369,588
Monolithic Power Systems, Inc.		10,200		3,735,546
Skyworks Solutions, Inc.		13,200		2,018,016
				12,745,026
Finance - 6.5%
Artisan Partners Asset Management, Inc.		31,825		1,602,070
Axis Capital Holdings, Ltd.		22,975		1,157,710
Essential Properties Realty Trust, Inc.		9,700		205,640
First Republic Bank		6,400		940,352
Physicians Realty Trust		61,600		1,096,480
PROG Holdings, Inc.		23,400		1,260,558
QTS Realty Trust, Inc.		13,300		823,004
SVB Financial Group *		3,775		1,464,058
				8,549,872
Health Services - 4.4%
Encompass Health Corp.		19,675		1,626,926
Teladoc Health, Inc. *		13,125		2,624,475
Tenet Healthcare Corp. *		40,100		1,601,193
				5,852,594

Name of Issuer	Quantity		Fair Value ($)
Health Technology - 18.1%
Align Technology, Inc. *		2,550		1,362,669
AtriCure, Inc. *		34,325		1,910,873
Bio-Techne Corp.		4,800		1,524,240
Exact Sciences Corp. *		15,700		2,080,093
ICU Medical, Inc. *		2,825		605,934
Insulet Corp. *		4,950		1,265,368
iRhythm Technologies, Inc. *		11,675		2,769,427
LeMaitre Vascular, Inc.		26,775		1,084,388
NanoString Technologies, Inc. *		11,650		779,152
Pacific Biosciences of California, Inc. *		130,500		3,385,170
PerkinElmer, Inc.		8,400		1,205,400
Sarepta Therapeutics, Inc. *		13,400		2,284,566
STAAR Surgical Co. *		24,525		1,942,870
STERIS, PLC		9,100		1,724,814
				23,924,964
Industrial Services - 3.9%
EMCOR Group, Inc.		15,800		1,445,068
KBR, Inc.		43,500		1,345,455
Waste Connections, Inc.		23,100		2,369,367
				5,159,890
Non-Energy Minerals - 3.1%
AZEK Co., Inc. *		24,200		930,490
Eagle Materials, Inc.		3,975		402,866
Trex Co., Inc. *		33,075		2,769,039
				4,102,395
Process Industries - 2.5%
Olin Corp.		34,300		842,408
Scotts Miracle-Gro Co.		12,600		2,509,164
				3,351,572
Producer Manufacturing - 8.8%
Applied Industrial Technologies, Inc.		7,000		545,930
AZZ, Inc.		8,425		399,682
Carlisle Cos, Inc.		2,200		343,596
Crane Co.		15,400		1,195,964
H&E Equipment Services, Inc.		44,200		1,317,602
Hubbell, Inc.		8,000		1,254,320
IDEX Corp.		3,000		597,600
Lincoln Electric Holdings, Inc.		8,900		1,034,625
MSA Safety, Inc.		11,400		1,703,046
Oshkosh Corp.		7,825		673,498
Rexnord Corp.		34,700		1,370,303
TPI Composites, Inc. *		8,675		457,867
Watsco, Inc.		2,925		662,659
				11,556,692

See accompanying notes to financial statements.

38 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Retail Trade - 2.1%
Casey’s General Stores, Inc.		4,300		768,066
PetMed Express, Inc.		34,250		1,098,055
Ulta Beauty, Inc. *		3,050		875,838
				2,741,959
Technology Services - 16.4%
Altair Engineering, Inc. *		29,983		1,744,411
ANSYS, Inc. *		3,725		1,355,155
Aspen Technology, Inc. *		12,575		1,637,894
Euronet Worldwide, Inc. *		16,600		2,405,672
Globant SA *		10,800		2,350,188
GoDaddy, Inc. *		15,025		1,246,324
HubSpot, Inc. *		7,025		2,784,991
Paycom Software, Inc. *		7,450		3,369,263
PTC, Inc. *		17,600		2,105,136
Qualys, Inc. *		4,350		530,135
Science Applications International Corp.		14,800		1,400,672
Talend SA, ADR *		19,100		732,294
				21,662,135

Name of Issuer	Quantity		Fair Value ($)
Transportation - 3.1%
Alaska Air Group, Inc.		11,500		598,000
Knight-Swift Transportation Holdings, Inc.		24,375		1,019,362
Marten Transport, Ltd.		72,075		1,241,852
TFI International, Inc.		25,075		1,293,368
				4,152,582
Utilities - 1.1%
Fortis, Inc.		12,107		494,208
Spire, Inc.		14,675		939,787
				1,433,995
Total Common Stocks (cost: $62,742,704)				129,360,287
Short-Term Securities - 2.2%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		2,936,482		2,936,482
(cost: $2,936,482)
Total Investments in Securities - 100.1% (cost: $65,679,186)				132,296,769
Other Assets and Liabilities, net - (0.1%)				(118,056	)
Total Net Assets - 100.0%			$	132,178,713

* Non-income producing security.

ADR — American Depositary Receipt

PLC — Public Limited Company

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks **		129,360,287	—	—		129,360,287
Short-Term Securities		2,936,482	—	—		2,936,482
Total:		132,296,769	—	—		132,296,769

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

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 39

Sit International Growth Fund

OBJECTIVE STRATEGY

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

Fund Performance

The Sit International Growth Fund outperformed the MSCI EAFE Index for the 6-month period ended December 31, 2020, with a return of +22.25%, compared with the +21.61% return for its benchmark.

Factors that Influenced the Fund’s Performance

Contributing favorably to performance during the 6-month period were the Fund’s holdings in software & services (Globant and Euronet Worldwide) and materials (LG Chemical and Rio Tinto) and both its sector overweights and stock selections in semiconductors (Samsung Electronics and Broadcom) and technology hardware (Logitech International and Keyence). Conversely, sectors that hurt performance were telecommunications services (China Tower and Cellnex Telecom, and not owning SoftBank Group), retailing (Alibaba Group), commercial & professional services (HomeServe and Waste Connections), and automobiles (no holdings, particularly Daimler).

Geographically, stock selection in Asia/Pacific ex-Japan (LG Chemical, Baidu, and Broadcom) and Non-Euroland (Logitech International, Interroll, and Hexagon), and region allocation in Latin America (Globant) contributed value, while allocations in the United Kingdom (AstraZeneca and HomeServe), Japan (Astellas Pharma and Terumo), and cash hurt performance.

Outlook and Positioning

We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. Unparalleled global stimulus, totaling almost $30 trillion thus far (or over 30% of world GDP), helped stave off an economic meltdown and is now underwriting a nascent worldwide recovery. Global real GDP is poised to expand at least +5.0% in 2021, versus a drop of about -4.3% in 2020.As the virus is brought under control, a wave of pent-up demand, inventory restocking, and business investment should take hold. We expect Japan’s economy to grow +2.5% in 2021, following a -5% contraction in 2020, as the uneven recovery from the virus-induced shock continues. China’s economy should grow over +8.0% in 2021, driven by increased private consumption and manufacturing capital spending, which both lagged in 2020. South Korea’s economic growth will be driven by exports and consumer spending, aided by the latest fiscal stimulus package to help small businesses. India’s economy continues to recover, led by domestic demand.

We are overweight Asia ex-Japan and underweight Europe and Japan. We prefer equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early imple-

HYPOTHETICAL GROWTH OF $10,000

The chart above illustrates the total value of a hypothetical $10,000 investment in the Fund over the past 10 years as compared to the performance of the MSCI EAFE Index and MSCI EAFE Growth Index. The primary index used to compare the Fund’s performance was changed to the MSCI EAFE Index from the MSCI EAFE Growth Index because the Investment Adviser believes that the MSCI EAFE Index more accurately reflects the Fund’s investment objectives and strategies. Past performance does not guarantee future results. Returns include the reinvestment of distributions. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

1 MSCI EAFE Index (Europe, Australasia, Far East) is an unmanaged free float-adjusted market capitalization index that measures the equity market performance of developed markets, excluding the US & Canada. This is the Fund’s primary index.

mentation of strict social-distancing measures to control the COVID-19 outbreak. We are constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. Our Chinese stocks are in the new economy and domestic demand-driven sectors. South Korean equities include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. In India, our holdings are in sectors that will profit from an improving domestic economy. Our Europe stocks are oriented toward the technology, healthcare, and services sectors. In Japan, our holdings continue to focus on companies with structural growth drivers and exposure to overseas economies, and that are defensive, domestic consumption-oriented.

Roger J. Sit

Portfolio Manager

40 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURNS

as of December 31, 2020

	Sit
	International
	Growth		MSCI EAFE
	Fund		Index 1
Six Month		22.25%		21.61%
One Year		18.63		7.82
Five Year		7.73		7.45
Ten Year		5.73		5.51
Since Inception (11/1/91)		4.56		5.49

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

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

FUND DIVERSIFICATION - BY REGION

	Sit Int’l		MSCI EAFE
	Growth Fund		Index
Europe		57.2%		61.6%
Asia		33.0		37.8
North America		6.3		—
Latin America		1.7		—
Africa/Middle East		—		0.6
Cash & Other Net Assets		1.8		—

Based on total net assets as of December 31, 2020. Subject to change.

PORTFOLIO SUMMARY

Net Asset Value 12/31/20:	$21.20  Per Share
Net Asset Value 6/30/20:	$17.38  Per Share
Total Net Assets:	$28.6    Million
Weighted Average Market Cap:	$101.8  Billion

TOP 10 HOLDINGS

  1. Logitech International SA

  2. Nestle SA

  3. LG Chem, Ltd.

  4. Schneider Electric SE

  5. ASML Holding NV

  6. Lonza Group AG

  7. Iberdrola SA

  8. Tencent Holdings, Ltd.

  9. Sony Corp., ADR

10. London Stock Exchange Group, PLC

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 41

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit International Growth Fund

Investments are grouped by geographic region.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 97.0%
Asia - 31.8%
Australia - 5.0%
Atlassian Corp., PLC *		2,125		496,974
CSL, Ltd.		1,175		256,523
Macquarie Group, Ltd.		2,600		277,579
Rio Tinto, PLC, ADR		4,400		330,968
Westpac Banking Corp., ADR		4,425		65,932
				1,427,976
China/Hong Kong - 11.5%
AIA Group, Ltd.		32,200		394,585
Alibaba Group Holding, Ltd., ADR *		2,350		546,915
Baidu, Inc., ADR *		2,175		470,322
Budweiser Brewing Co. APAC, Ltd.		21,500		70,997
China Tower Corp., Ltd.		1,342,000		197,341
CSPC Pharmaceutical Group, Ltd.		262,960		268,982
ENN Energy Holdings, Ltd.		18,400		270,098
Ping An Insurance Group Co. of China, Ltd.		33,500		410,515
Tencent Holdings, Ltd.		9,000		654,761
				3,284,516
Japan - 9.7%
Astellas Pharma, Inc.		17,700		273,244
Keyence Corp.		1,000		561,716
Recruit Holdings Co., Ltd.		11,200		468,696
Shiseido Co., Ltd.		4,100		283,353
Sony Corp., ADR		6,300		636,930
Terumo Corp.		13,100		547,065
				2,771,004
Singapore - 1.8%
DBS Group Holdings, Ltd.		15,600		295,569
Singapore Technologies Engineering, Ltd.		78,400		226,610
				522,179
South Korea - 3.8%
LG Chem, Ltd.		975		739,575
Samsung Electronics Co., Ltd., GDR		185		337,625
				1,077,200
Europe - 57.2%
Denmark - 0.8%
Bavarian Nordic *		7,550		231,740
France - 8.3%
AXA SA		11,750		280,083
Dassault Systemes SE		2,625		532,815
Safran SA *		3,200		453,281
Sanofi, ADR		3,800		184,642
Schneider Electric SE		5,000		722,606
Talend SA, ADR *		4,900		187,866
				2,361,293

Name of Issuer	Quantity		Fair Value ($)
Germany - 5.9%
adidas AG *		1,630		593,205
Allianz SE		2,250		551,667
Deutsche Post AG		1,400		69,268
Muenchener Rueckversicherungs AG		435		129,028
Siemens AG		2,225		319,439
Siemens Energy AG *		1,112		40,754
				1,703,361
Ireland - 2.0%
CRH, PLC, ADR		4,800		204,384
STERIS, PLC		1,950		369,603
				573,987
Netherlands - 3.6%
ASML Holding NV		1,450		707,194
Koninklijke Philips NV *		5,866		317,761
				1,024,955
Spain - 3.9%
Cellnex Telecom SA		7,733		464,038
Iberdrola SA		45,900		656,063
				1,120,101
Sweden - 2.2%
Hexagon AB		3,800		346,303
Telefonaktiebolaget LM Ericsson, ADR		23,575		281,721
				628,024
Switzerland - 16.7%
Garmin, Ltd.		3,600		430,776
Interroll Holding AG		120		365,300
Logitech International SA		8,125		789,669
Lonza Group AG		1,075		690,681
Nestle SA		6,600		777,269
Novartis AG		4,325		408,659
Partners Group Holding AG		490		575,624
Roche Holding AG		1,320		460,725
Zurich Insurance Group AG		680		286,886
				4,785,589
United Kingdom - 13.8%
Ashtead Group, PLC		9,600		451,341
AstraZeneca, PLC, ADR		8,300		414,917
BAE Systems, PLC		52,600		351,596
Coca-Cola European Partners, PLC		5,400		269,082
Dechra Pharmaceuticals, PLC		6,300		297,226
Diageo, PLC, ADR		2,775		440,698
Entain, PLC *		8,375		129,818
HomeServe, PLC		22,975		322,038
London Stock Exchange Group, PLC		5,100		628,240
Reckitt Benckiser Group, PLC		3,100		277,332
RELX, PLC		14,700		359,704
				3,941,992

See accompanying notes to financial statements.

42 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Latin America - 1.7%
Argentina - 1.7%
Globant SA *		2,225		484,182
North America - 6.3%
Canada - 2.8%
Alimentation Couche-Tard, Inc.		5,200		177,214
BRP, Inc.		2,925		193,231
Colliers International Group, Inc.		1,600		142,608
Waste Connections, Inc.		2,750		282,068
				795,121
United States - 3.5%
Broadcom, Inc.		1,025		448,796
Euronet Worldwide, Inc. *		1,950		282,594
Mondelez International, Inc.		4,800		280,656
				1,012,046
Total Common Stocks (cost: $16,970,675)				27,745,266
Investment Companies - 1.2%
iShares MSCI India ETF		8,700		349,914
(cost: $258,117)
Short-Term Securities - 1.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		470,617		470,617
(cost: $470,617)
Total Investments in Securities - 99.9% (cost: $17,699,409)				28,565,797
Other Assets and Liabilities, net - 0.1%				25,679
Total Net Assets - 100.0%			$	28,591,476

*  Non-income producing security.

  ADR — American Depositary Receipt

  GDR — Global Depositary Receipt

  PLC — Public Limited Company

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 43

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit International Growth Fund (Continued)

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

	Investment in Securities
	Level 1 Quoted     Price ($)		Level 2 Other significant     observable inputs ($)	Level 3 Significant     unobservable inputs ($)	Total ($)
Common Stocks
Argentina		484,182	—	—		484,182
Australia		1,427,976	—	—		1,427,976
Canada		795,121	—	—		795,121
China/Hong Kong		3,284,516	—	—		3,284,516
Denmark		231,740	—	—		231,740
France		2,361,293	—	—		2,361,293
Germany		1,703,361	—	—		1,703,361
Ireland		573,987	—	—		573,987
Japan		2,771,004	—	—		2,771,004
Netherlands		1,024,955	—	—		1,024,955
Singapore		522,179	—	—		522,179
South Korea		1,077,200	—	—		1,077,200
Spain		1,120,101	—	—		1,120,101
Sweden		628,024	—	—		628,024
Switzerland		4,785,589	—	—		4,785,589
United Kingdom		3,941,992	—	—		3,941,992
United States		1,012,046	—	—		1,012,046
Investment Companies		349,914	—	—		349,914
Short-Term Securities		470,617	—	—		470,617
Total:		28,565,797	—	—		28,565,797

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

See accompanying notes to financial statements.

44 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

[This page intentionally left blank.]

DECEMBER 31, 2020 45

Sit Developing Markets Growth Fund

OBJECTIVE & STRATEGY

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

Fund Performance

The Sit Developing Markets Growth Fund increased +28.28% during the 6-month period ended December 31, 2020, compared with the MSCI Emerging Markets Index return of +29.76%.

Factors that Influenced the Fund’s Performance

Contributing to underperformance during the 6-month period were the Fund’s underweight in automobiles (particularly not owning NIO), its stock selection in consumer services (TAL Education Group), pharmaceuticals (CSPC Pharmaceutical Group) and technology hardware (owning Hon Hai Precision Industry and not owning Xiaomi), and its large cash position. On the positive side, sectors that helped performance were materials (LG Chemical and Southern Copper), banks (HDFC Bank), media & entertainment (Baidu), and real estate (underweight).

Geographically, holdings in the Asia/Pacific ex-Japan region (owning TAL Education Group, CSPC Pharmaceutical Group, PT XL Axiata, and China Tower, and not owning NIO) and its weighting in North America detracted from performance, while Latin America (PagSeguro Digital and Globant) and Africa/Mideast (NICE ) added value. By country, the Fund’s holdings in South Korea, Taiwan, and the United States hurt returns, while its sector overweight and holdings in China, its sector overweight in Israel, and its stock selection in Argentina helped performance.

Outlook and Positioning

We expect a post-pandemic, synchronized global recovery to gather steam in 2021, following the deepest economic contraction since World War II in 2020. China’s economy should recover and grow over +8.0% in 2021, driven in part by increased private consumption and manufacturing capital spending, which both lagged in 2020. Also, insofar as 2021 marks the beginning of the nation’s 14th Five Year Plan and the 100th anniversary of the Chinese Communist Party, growth stability will be a top priority. South Korea’s economic growth will be driven by exports and consumer spending, aided by the latest fiscal stimulus package to help small businesses and vulnerable workers. India’s economic recovery will be led by domestic demand. The outlook for LatinAmerica is more cautious, as new daily coronavirus cases in Brazil and Mexico are rebounding, and Mexico’s fiscal support has been negligible, at just 0.6% of GDP, which will make economic recovery challenging there.

HYPOTHETICAL GROWTH OF $10,000

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

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

We remain positive on equities in China, South Korea, and India, as these nations are further along in their economic recoveries due to the early implementation of strict social-distancing measures to control the COVID-19 outbreak. We remain constructive on Chinese stocks, given improving earnings growth, a still-benign domestic policy setting, a recovering global economy aided by expanded vaccinations, a more predictable U.S.-China relationship under a Biden administration, and continued Fed policy support. We are cautious on Chinese Internet stocks near term given regulation uncertainties but remain optimistic on the segment’s growth prospects longer term. South Korean equities include exporters, work-from-home and consumer spending beneficiaries, and electric vehicle companies. Electric vehicle demand is expected to rise as part of the secular worldwide commitment to net-zero carbon emissions by 2060. Our equity holdings in India are positioned in sectors that will profit from an improving domestic economy, i.e., consumer, financials, energy, information services, and industrials.

Roger J. Sit     Raymond E. Sit

Portfolio Managers

46 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

COMPARATIVE RATES OF RETURN

as of December 31, 2020

	Sit Developing Markets Growth Fund			MSCI Emerging Markets Index 1
Six Month		28.28	%		29.76	%
One Year		23.14			15.84
Five Year		13.28			10.21
Ten Year		2.80			1.15
Since Inception		4.89			3.81
(7/1/94)

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

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

FUND DIVERSIFICATION - BY REGION

	Sit Developing Markets Growth Fund			MSCI Emerging Markets Index
Asia		73.3	%		80.0	%
Africa/Middle East		8.8			7.7
Latin America		8.1			7.9
North America		4.0			—
Europe		—			4.4
Cash & Other Net Assets		5.8			—

Based on total net assets as of December 31, 2020. Subject to change.

PORTFOLIO SUMMARY

Net Asset Value 12/31/20:	$20.83 Per Share
Net Asset Value 6/30/20:	$16.28 Per Share
Total Net Assets:	$13.5 Million
Weighted Average Market Cap:	$181.6 Billion

TOP 10 HOLDINGS

  1. Samsung Electronics Co., Ltd.

  2. Tencent Holdings, Ltd.

  3. Taiwan Semiconductor Co.

  4. Alibaba Group Holding, Ltd., ADR

  5. TAL Education Group, ADR

  6. iShares MSCI India ETF

  7. LG Chem, Ltd.

  8. NICE Systems, Ltd., ADR

  9. JD.com, Inc., ADR

10. HDFC Bank, Ltd., ADR

Based on total net assets as of December 31, 2020. Subject to change.

SECTOR ALLOCATION

Based on total net assets as of December 31, 2020. Subject to change.

DECEMBER 31, 2020 47

SCHEDULE OF INVESTMENTS (Unaudited)

December 31, 2020

Sit Developing Markets Growth Fund

Investments are grouped by geographic region.

Name of Issuer	Quantity		Fair Value ($)
Common Stocks - 90.9%
Africa/Middle East - 8.8%
Israel - 3.1%
NICE Systems, Ltd., ADR *		1,500		425,310
South Africa - 5.7%
Bid Corp., Ltd.		13,200		236,271
Bidvest Group, Ltd.		5,525		59,036
Naspers, Ltd.		1,425		292,792
Prosus NV		1,700		183,506
				771,605
Asia - 70.0%
Australia - 1.4%
Rio Tinto, PLC, ADR		2,475		186,169
China/Hong Kong - 39.7%
AIA Group, Ltd.		21,400		262,240
Alibaba Group Holding, Ltd., ADR *		2,875		669,099
Baidu, Inc., ADR *		1,700		367,608
Budweiser Brewing Co. APAC, Ltd.		10,200		33,682
China Construction Bank Corp.		125,000		94,970
China Mengniu Dairy Co., Ltd.		48,000		289,766
China Petroleum & Chemical Corp., ADR		1,400		62,440
China Tower Corp., Ltd.		704,000		103,523
CSPC Pharmaceutical Group, Ltd.		230,400		235,677
ENN Energy Holdings, Ltd.		21,900		321,475
GDS Holdings, Ltd., ADR *		600		56,184
Hong Kong Exchanges & Clearing, Ltd.		5,100		279,589
JD.com, Inc., ADR *		4,450		391,155
Meituan Dianping *		6,000		228,005
Ping An Insurance Group Co. of China, Ltd.		19,900		243,858
Sinopharm Group Co., Ltd.		44,900		109,232
TAL Education Group, ADR *		7,900		564,929
Tencent Holdings, Ltd.		11,400		829,364
Tencent Music Entertainment Group, ADR *		5,525		106,301
WH Group, Ltd.		132,500		111,094
				5,360,191
India - 2.9%
HDFC Bank, Ltd., ADR *		5,350		386,591
Indonesia - 1.9%
Astra International Tbk PT		176,000		75,473
XL Axiata Tbk PT		948,800		184,358
				259,831
Singapore - 3.0%
DBS Group Holdings, Ltd.		14,500		274,728
Singapore Technologies Engineering, Ltd.		44,000		127,179
				401,907
South Korea - 12.4%
LG Chem, Ltd.		575		436,159
Medytox, Inc.		322		51,930

Name of Issuer	Quantity		Fair Value ($)
NAVER Corp.		225		60,584
Samsung Electronics Co., Ltd.		12,250		913,422
Shinhan Financial Group Co., Ltd. *		7,200		212,428
				1,674,523
Taiwan - 7.9%
Cathay Financial Holding Co., Ltd.		82,085		123,428
Hon Hai Precision Industry Co., Ltd., GDR		26,835		174,964
Taiwan Semiconductor Co.		37,482		707,006
Taiwan Semiconductor Co., ADR		600		65,424
				1,070,822
Thailand - 0.8%
Bangkok Bank PCL		27,700		110,023
Latin America - 8.1%
Argentina - 1.9%
Globant SA *		1,175		255,692
Brazil - 3.6%
Ambev SA, ADR		21,575		66,020
Banco Bradesco SA		25,083		131,060
Lojas Renner SA		9,400		78,795
Pagseguro Digital, Ltd. *		3,800		216,144
				492,019
Chile - 0.7%
Banco Santander Chile, ADR		4,700		89,253
Peru - 1.9%
Southern Copper Corp.		3,900		253,968
North America - 4.0%
Mexico - 0.9%
Fomento Economico Mexicano, ADR		1,575		119,338
United States - 3.1%
Broadcom, Inc.		550		240,818
Skyworks Solutions, Inc.		1,150		175,812
				416,630
Total Common Stocks (cost: $6,983,272)				12,273,872
Investment Companies - 3.3%
iShares MSCI India ETF		11,100		446,442
(cost: $333,061)

See accompanying notes to financial statements.

48 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Name of Issuer	Quantity		Fair Value ($)
Short-Term Securities - 5.7%
Fidelity Inst. Money Mkt. Gvt. Fund, 0.01%		773,736		773,736
(cost: $773,736)
Total Investments in Securities - 99.9% (cost: $8,090,069)				13,494,050
Other Assets and Liabilities, net - 0.1%				7,193
Total Net Assets - 100.0%			$	13,501,243

* Non-income producing security.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

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

A summary of the levels for the Fund’s investments as of December 31, 2020 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):

			Investment in Securities
	Level 1 Quoted Price ($)		Level 2 Other significant observable inputs ($)	Level 3 Significant unobservable inputs ($)	Total ($)
Common Stocks
Argentina		255,692	—	—		255,692
Australia		186,169	—	—		186,169
Brazil		492,019	—	—		492,019
Chile		89,253	—	—		89,253
China/Hong Kong		5,360,191	—	—		5,360,191
India		386,591	—	—		386,591
Indonesia		259,831	—	—		259,831
Israel		425,310	—	—		425,310
Mexico		119,338	—	—		119,338
Peru		253,968	—	—		253,968
Singapore		401,907	—	—		401,907
South Africa		771,605	—	—		771,605
South Korea		1,674,523	—	—		1,674,523
Taiwan		1,070,822	—	—		1,070,822
Thailand		110,023	—	—		110,023
United States		416,630	—	—		416,630
Investment Companies		446,442	—	—		446,442
Short-Term Securities		773,736	—	—		773,736
Total:		13,494,050	—	—		13,494,050

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

See accompanying notes to financial statements.

DECEMBER 31, 2020 49

STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)

December 31, 2020

	Sit Balanced Fund	Sit Dividend Growth Fund	Sit Global Dividend Growth Fund
ASSETS
Investments in securities, at identified cost	$44,195,636	$159,452,575	$24,616,756
Investments in securities, at fair value - see accompanying schedule for detail	$61,002,029	$222,142,692	$41,061,184
Cash in bank on demand deposit	—	99	—
Accrued interest and dividends receivable	145,436	210,409	53,063
Receivable for investment securities sold	115,136	739,026	—
Receivable for Fund shares sold	44,104	129,166	1,444
Total assets	61,306,705	223,221,392	41,115,691
LIABILITIES
Payable for investment securities purchased	61,995	199,946	—
Payable for Fund shares redeemed	5,638	162,810	—
Accrued investment management fees and advisory fees	50,729	132,014	34,301
Accrued 12b-1 fees (Class S)	—	6,246	768
Total liabilities	118,362	501,016	35,069
Net assets applicable to outstanding capital stock	$61,188,343	$222,720,376	$41,080,622
Net assets consist of:
Capital (par value and paid-in surplus)	$44,110,269	$160,514,168	$26,225,140
Total distributable earnings (loss), including unrealized appreciation (depreciation)	17,078,074	62,206,208	14,855,482
	$61,188,343	$222,720,376	$41,080,622
Outstanding shares:
Common Shares (Class I) *	2,037,333	12,687,091	1,852,950
Common Shares (Class S) *	—	1,967,282	183,533
Net assets applicable to outstanding shares:
Common Shares (Class I) *	$61,188,343	$192,961,493	$37,379,547
Common Shares (Class S) *	—	29,758,883	3,701,075
Net asset value per share of outstanding capital stock:
Common Shares (Class I) *	$30.03	$15.21	$20.17
Common Shares (Class S) *	—	$15.13	$20.17

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

See accompanying notes to financial statements.

50 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Sit Large Cap Growth Fund		Sit ESG Growth Fund		Sit Mid Cap Growth Fund		Sit Small Cap Dividend Growth Fund		Sit Small Cap Growth Fund		Sit International Growth Fund		Sit Developing Markets Growth Fund
	$61,174,723		$5,040,922		$98,737,913		$13,735,807		$65,679,186		$17,699,409		$8,090,069
	$157,243,427		$7,956,055		$214,081,293		$19,504,978		$132,296,769		$28,565,797		$13,494,050
	—		—		—		—		—		3		47
	49,353		8,720		29,171		19,485		62,546		59,180		21,311
	—		—		—		23,245		609,413		—		—
	11,458		6,049		6,191		1,422		5,079		1,605		1,225
	157,304,238		7,970,824		214,116,655		19,549,130		132,973,807		28,626,585		13,516,633
	247,980		—		—		63,043		600,908		—		—
	68,119		—		139,985		—		30,376		—		—
	130,635		6,541		222,060		16,020		163,810		35,109		15,390
	—		771		—		964		—		—		—
	446,734		7,312		362,045		80,027		795,094		35,109		15,390
	$156,857,504		$7,963,512		$213,754,610		$19,469,103		$132,178,713		$28,591,476		$13,501,243
	$59,505,868		$5,089,431		$92,550,931		$13,755,448		$63,453,982		$19,507,071		$8,071,687
	97,351,636		2,874,081		121,203,679		5,713,655		68,724,731		9,084,405		5,429,556
	$156,857,504		$7,963,512		$213,754,610		$19,469,103		$132,178,713		$28,591,476		$13,501,243
	2,856,561		260,002		9,132,154		1,020,206		1,808,986		1,348,440		648,107
	—		228,372		—		320,705		—		—		—
	$156,857,504		$4,250,145		$213,754,610		$14,813,101		$132,178,713		$28,591,476		$13,501,243
	—		3,713,367		—		4,656,002		—		—		—
	$54.91		$16.35		$23.41		$14.52		$73.07		$21.20		$20.83
	—		$16.26		—		$14.52		—		—		—

DECEMBER 31, 2020 51

STATEMENTS OF OPERATIONS (Unaudited)

Six Months Ended December 31, 2020

	Sit Balanced Fund		Sit Dividend Growth Fund			Sit Global Dividend Growth Fund
Investment income:
Income:
Dividends*		$258,212		$2,357,667			$375,458
Interest		231,135		98			46
Total income		489,347		2,357,765			375,504
Expenses (note 4):
Investment management and advisory service fee		271,840		1,071,780			236,732
12b-1 fees (Class S)		—		36,696			4,404
Total expenses		271,840		1,108,476			241,136
Less fees and expenses waived by investment adviser		—		(321,534	)		(47,346	)
Total net expenses		271,840		786,942			193,790
Net investment income (loss)		217,507		1,570,823			181,714
Realized and unrealized gain (loss):
Net realized gain (loss) on investments		300,391		8,316,872			(536,568	)
Net realized gain (loss) on foreign currency transactions		—		—			872
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		7,134,385		30,094,260			7,423,138
Net gain (loss)		7,434,776		38,411,132			6,887,442
Net increase (decrease) in net assets resulting from operations		$7,652,283		$39,981,955			$7,069,156
* Foreign taxes withheld on dividends received		—		$10,338			$6,130

See accompanying notes to financial statements.

52 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Sit Large Cap Growth Fund		Sit ESG Growth Fund			Sit Mid Cap Growth Fund			Sit Small Cap Dividend Growth Fund			Sit Small Cap Growth Fund			Sit International Growth Fund			Sit Developing Markets Growth Fund
	$653,213		$56,591			$817,241			$186,010			$546,392			$158,061			$80,714
	128		28			583			39			269			—			45
	653,341		56,619			817,824			186,049			546,661			158,061			80,759
	724,586		45,705			1,193,568			107,722			854,608			191,842			116,238
	—		4,309			—5,090						—			—			—
	724,586		50,014			1,193,568			112,812			854,608			191,842			116,238
	—		(9,141	)		—			(21,544	)		—			—			(34,872	)
	724,586		40,873			1,193,568			91,268			854,608			191,842			81,366
	(71,245)		15,746			(375,744	)		94,781			(307,947	)		(33,781	)		(607	)
	5,005,414		59,537			10,495,260			188,950			6,894,306			(305,950	)		92,855
	—		15			(191	)		—			—			412			(2	)
	24,387,604		1,162,017			37,317,016			4,045,660			26,354,375			5,460,008			2,784,010
	29,393,018		1,221,569			47,812,085			4,234,610			33,248,681			5,154,470			2,876,863
	$29,321,773		$1,237,315			$47,436,341			$4,329,391			$32,940,734			$5,120,689			$2,876,256
	—		$1,802			$2,279			$589			$4,629			$11,977			$11,241

DECEMBER 31, 2020 53

STATEMENTS OF CHANGES IN NET ASSETS

	Sit Balanced Fund						Sit Dividend Growth Fund
	Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020
Operations:
Net investment income (loss)		$217,507			$369,252			$1,570,823			$3,661,546
Net realized gain (loss) on investments and foreign currency transactions		300,391			696,800			8,316,872			10,697,810
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions		7,134,385			2,719,030			30,094,260			(2,538,615	)
Net increase (decrease) in net assets resulting from operations		7,652,283			3,785,082			39,981,955			11,820,741
Distributions from:
Net investment income and net realized gains
Common shares (Class I)		(801,971	)		(2,136,305	)		(12,575,977	)		(25,345,878	)
Common shares (Class S)		—			—			(1,885,036	)		(4,407,144	)
Total distributions		(801,971	)		(2,136,305	)		(14,461,013	)		(29,753,022	)
Capital share transactions:
Proceeds from shares sold
Common shares (Class I)		11,780,134			17,316,727			7,385,110			25,105,046
Common shares (Class S)		—			—			481,204			1,253,693
Reinvested distributions
Common shares (Class I)		791,979			2,103,223			11,888,153			23,804,702
Common shares (Class S)		—			—			1,881,095			4,392,885
Payments for shares redeemed
Common shares (Class I)		(4,891,583	)		(8,876,091	)		(20,986,037	)		(75,291,359	)
Common shares (Class S)		—			—			(5,301,885	)		(13,413,244	)
Increase (decrease) in net assets from capital transactions		7,680,530			10,543,859			(4,652,360	)		(34,148,277	)
Total increase (decrease) in net assets		14,530,842			12,192,636			20,868,582			(52,080,558	)
Net assets:
Beginning of period		46,657,501			34,464,865			201,851,794			253,932,352
End of period		$61,188,343			$46,657,501			$222,720,376			$201,851,794
Capital transactions in shares:
Sold
Common shares (Class I)		414,349			680,555			494,755			1,827,566
Common shares (Class S)		—			—			32,805			92,706
Reinvested distributions
Common shares (Class I)		27,043			83,820			798,249			1,675,670
Common shares (Class S)		—			—			126,956			310,474
Redeemed
Common shares (Class I)		(173,169	)		(370,549	)		(1,420,216	)		(5,513,813	)
Common shares (Class S)		—			—			(363,883	)		(995,697	)
Net increase (decrease)		268,223			393,826			(331,334	)		(2,603,094	)

See accompanying notes to financial statements.

54 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Sit Global Dividend Growth Fund					Sit Large Cap Growth Fund						Sit ESG Growth Fund
Six Months Ended December 31, 2020 (Unaudited)		Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020
	$181,714		$458,867			($71,245	)		$200,539			$15,746			$48,643
	(535,696)		134,732			5,005,414			7,837,834			59,552			52,787
	7,423,138		942,590			24,387,604			14,917,326			1,162,017			285,159
	7,069,156		1,536,189			29,321,773			22,955,699			1,237,315			386,589
	(299,291)		(495,881	)		(7,944,944	)		(10,751,684	)		(24,675	)		(55,450	)
	(24,713)		(45,123	)		—			—			(17,325	)		(44,523	)
	(324,004)		(541,004	)		(7,944,944	)		(10,751,684	)		(42,000	)		(99,973	)
	1,632,581		2,566,271			6,371,598			3,793,196			337,381			53,788
	69,541		493,938			—			—			18,276			88,716
	281,789		473,429			7,789,099			10,576,386			24,675			55,450
	24,713		44,849			—			—			17,325			44,523
	(2,003,894)		(3,345,936	)		(7,834,027	)		(14,001,032	)		(220,362	)		(168,614	)
	(421,547)		(538,748	)		—			—			(44,888	)		(6,803	)
	(416,817)		(306,197	)		6,326,670			368,550			132,407			67,060
	6,328,335		688,988			27,703,499			12,572,565			1,327,722			353,676
	34,752,287		34,063,299			129,154,005			116,581,440			6,635,790			6,282,114
	$41,080,622		$34,752,287			$156,857,504			$129,154,005			$7,963,512			$6,635,790
	86,291		150,362			118,337			90,022			21,499			3,933
	3,782		32,537			—			—			1,154			6,554
	15,797		29,095			143,077			246,824			1,528			3,936
	1,398		2,759			—			—			1,078			3,173
	(108,511)		(206,028	)		(148,919	)		(334,238	)		(14,072	)		(13,142	)
	(22,911)		(32,495	)		—			—			(3,063	)		(491	)
	(24,154)		(23,770	)		112,495			2,608			8,124			3,963

DECEMBER 31, 2020 55

STATEMENTS OF CHANGES IN NET ASSETS (Continued)

	Sit Mid Cap Growth Fund						Sit Small Cap Dividend Growth Fund
	Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020
Operations:
Net investment income (loss)		($375,744	)		($449,745	)		$94,781			$171,566
Net realized gain (loss) on investments and foreign currency transactions		10,495,069			8,299,165			188,950			(63,100	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency transactions		37,317,016			5,783,828			4,045,660			(650,584	)
Net increase (decrease) in net assets resulting from operations		47,436,341			13,633,248			4,329,391			(542,118	)
Distributions from:
Net investment income and net realized gains
Common shares (Class I)		(8,583,537	)		(12,018,685	)		(101,665	)		(143,293	)
Common shares (Class S)		—			—			(24,336	)		(37,709	)
Total distributions		(8,583,537	)		(12,018,685	)		(126,001	)		(181,002	)
Capital share transactions:
Proceeds from shares sold
Common shares (Class I)		1,200,306			1,783,445			954,609			1,690,858
Common shares (Class S)		—			—			94,904			114,119
Reinvested distributions
Common shares (Class I)		8,275,873			11,531,885			95,549			135,470
Common shares (Class S)		—			—			23,008			35,517
Payments for shares redeemed
Common shares (Class I)		(7,318,564	)		(11,284,411	)		(1,230,152	)		(2,069,396	)
Common shares (Class S)		—			—			(178,320	)		(216,438	)
Increase (decrease) in net assets from capital transactions		2,157,615			2,030,919			(240,402	)		(309,870	)
Total increase (decrease) in net assets		41,010,419			3,645,482			3,962,988			(1,032,990	)
Net assets:
Beginning of period		172,744,191			169,098,709			15,506,115			16,539,105
End of period		$213,754,610			$172,744,191			$19,469,103			$15,506,115
Capital transactions in shares:
Sold
Common shares (Class I)		54,492			99,516			71,804			141,777
Common shares (Class S)		—			—			7,073			9,990
Reinvested distributions
Common shares (Class I)		356,565			632,577			7,554			11,483
Common shares (Class S)		—			—			1,818			2,979
Redeemed
Common shares (Class I)		(345,853	)		(638,495	)		(93,913	)		(174,897	)
Common shares (Class S)		—			—			(14,961	)		(21,280	)
Net increase (decrease)		65,204			93,598			(20,625	)		(29,948	)

See accompanying notes to financial statements.

56 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Sit Small Cap Growth Fund					Sit International Growth Fund						Sit Developing Markets Growth Fund
Six Months Ended December 31, 2020 (Unaudited)		Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020			Six Months Ended December 31, 2020 (Unaudited)			Year Ended June 30, 2020
	($307,947)		($502,943	)		($33,781	)		$79,522			($607	)		$162,064
	6,894,306		2,423,438			(305,538	)		(344,236	)		92,853			(26,021	)
	26,354,375		3,290,428			5,460,008			761,010			2,784,010			55,100
	32,940,734		5,210,923			5,120,689			496,296			2,876,256			191,143
	(4,398,753)		(3,070,107	)		(61,407	)		(227,001	)		(34,798	)		(185,000	)
	—		—			—			—			—			—
	(4,398,753)		(3,070,107	)		(61,407	)		(227,001	)		(34,798	)		(185,000	)
	1,910,080		1,513,165			1,342,942			906,266			953,353			936,308
	—		—			—			—			—			—
	4,280,437		3,017,215			60,436			222,999			34,052			180,261
	—		—			—			—			—			—
	(3,166,488)		(5,688,108	)		(875,743	)		(1,856,893	)		(587,409	)		(858,591	)
	—		—			—			—			—			—
	3,024,029		(1,157,728	)		527,635			(727,628	)		399,996			257,978
	31,566,010		983,088			5,586,917			(458,333	)		3,241,454			264,121
	100,612,703		99,629,615			23,004,559			23,462,892			10,259,789			9,995,668
	$132,178,713		$100,612,703			$28,591,476			$23,004,559			$13,501,243			$10,259,789
	28,222		28,064			67,257			52,331			48,942			57,066
	—		—			—			—			—			—
	59,649		54,719			2,881			12,584			1,656			10,714
	—		—			—			—			—			—
	(49,990)		(108,206	)		(45,295	)		(110,718	)		(32,877	)		(54,070	)
	—		—			—			—			—			—
	37,881		(25,423	)		24,843			(45,803	)		17,721			13,710

DECEMBER 31, 2020 57

FINANCIAL HIGHLIGHTS

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

Sit Balanced Fund
	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$26.37		$25.06			$23.76			$22.71			$20.40			$21.54
Operations:
Net investment income 1		0.11		0.25			0.32			0.25			0.25			0.26
Net realized and unrealized gains		3.96		2.64			1.52			1.96			2.29			0.04
Total from operations		4.07		2.89			1.84			2.21			2.54			0.30
Distributions to Shareholders:
From net investment income		(0.16)		(0.27	)		(0.31	)		(0.27	)		(0.23	)		(0.45	)
From net realized gains		(0.25)		(1.31	)		(0.23	)		(0.89	)		—			(0.99	)
Total distributions		(0.41)		(1.58	)		(0.54	)		(1.16	)		(0.23	)		(1.44	)
Net Asset Value:
End of period		$30.03		$26.37			$25.06			$23.76			$22.71			$20.40
Total investment return 2		15.47%		11.91%			7.98%			9.84%			12.56%			1.47%
Net assets at end of period (000’s omitted)		$61,188		$46,658			$34,465			$37,541			$25,242			$23,511
Ratios: 3
Expenses		1.00%		1.00%			1.00%			1.00%			1.00%			1.00%
Net investment income		0.80%		0.99%			1.33%			1.07%			1.18%			1.25%
Portfolio turnover rate (excluding short-term securities)		18.01%4		58.63%			50.45%			50.49%			50.31%			54.46%

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  Not annualized.

58 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Dividend Growth Fund

	Six Months Ended
Class I	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$13.48		$14.45			$16.69			$16.88			$15.82			$17.40
Operations:
Net investment income 1		0.11		0.22			0.38			0.26			0.24			0.26
Net realized and unrealized gains		2.65		0.64			0.55			1.49			2.09			0.32
Total from operations		2.76		0.86			0.93			1.75			2.33			0.58
Redemption fees 2		—		—			—			—			—			—
Distributions to Shareholders:
From net investment income		(0.17)		(0.24	)		(0.40	)		(0.26	)		(0.23	)		(0.32	)
From net realized gains		(0.86)		(1.59	)		(2.77	)		(1.68	)		(1.04	)		(1.84	)
Total distributions.		(1.03)		(1.83	)		(3.17	)		(1.94	)		(1.27	)		(2.16	)
Net Asset Value:
End of period		$15.21		$13.48			$14.45			$16.69			$16.88			$15.82
Total investment return 3		20.66%		5.46%			8.37%			10.36%			15.41%			3.94%
Net assets at end of period (000’s omitted)		$192,961		$172,746			$214,204			$918,584			$1,015,920			$942,244
Ratios: 4
Expenses (without waiver)		1.00%5		1.00%5			1.00%5			1.00%5			1.00%			1.00%
Expenses (with waiver)		0.70%5		0.70%5			0.70%5			0.78%5			1.00%			1.00%
Net investment income (without waiver)		1.20%		1.30%			2.04%			1.31%			1.49%			1.64%
Net investment income (with waiver)		1.50%		1.60%			2.34%			1.53%			1.49%			1.64%
Portfolio turnover rate (excluding short-term securities)		21.18%6		68.43%			51.52%			68.38%			61.33%			75.94%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

DECEMBER 31, 2020 59

FINANCIAL HIGHLIGHTS

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

Sit Dividend Growth Fund

	Six Months Ended
Class S	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$13.40		$14.37			$16.61			$16.81			$15.76			$17.34
Operations:
Net investment income 1		0.09		0.19			0.32			0.22			0.20			0.22
Net realized and unrealized gains		2.64		0.63			0.57			1.47			2.08			0.32
Total from operations		2.73		0.82			0.89			1.69			2.28			0.54
Redemption fees		—		— 2			—	2		—	2		—	2		—	2
Distributions to Shareholders:
From net investment income		(0.14)		(0.20	)		(0.36	)		(0.21	)		(0.19	)		(0.28	)
From net realized gains		(0.86)		(1.59	)		(2.77	)		(1.68	)		(1.04	)		(1.84	)
Total distributions.		(1.00)		(1.79	)		(3.13	)		(1.89	)		(1.23	)		(2.12	)
Net Asset Value:
End of period		$15.13		$13.40			$14.37			$16.61			$16.81			$15.76
Total investment return 3		20.56%		5.19%			8.12%			10.06%			15.11%			3.68%
Net assets at end of period (000’s omitted)		$29,759		$29,106			$39,729			$51,331			$65,278			$67,620
Ratios: 4
Expenses (without waiver)		1.25%5		1.25%5			1.25%5			1.25%5			1.25%			1.25%
Expenses (with waiver)		0.95%5		0.95%5			0.95%5			1.03%5			1.25%			1.25%
Net investment income (without waiver)		0.95%		1.05%			1.80%			1.06%			1.24%			1.39%
Net investment income (with waiver)		1.25%		1.35%			2.10%			1.28%			1.24%			1.39%
Portfolio turnover rate (excluding short-term securities)		21.18%6		68.43%			51.52%			68.38%			61.33%			75.94%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

60 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Global Dividend Growth Fund

	Six Months Ended
Class I	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$16.87		$16.34			$15.24			$14.54			$13.19			$14.80
Operations:
Net investment income 1		0.09		0.22			0.28			0.27			0.22			0.21
Net realized and unrealized gains (losses)		3.37		0.57			1.10			0.67			1.34			(0.48	)
Total from operations		3.46		0.79			1.38			0.94			1.56			(0.27	)
Redemption fees		—  2		—	2		—	2		—			—	2		—
Distributions to Shareholders:
From net investment income		(0.16)		(0.26	)		(0.28	)		(0.24	)		(0.21	)		(0.34	)
From net realized gains		—		—			—			—			—			(1.00	)
Total distributions.		(0.16)		(0.26	)		(0.28	)		(0.24	)		(0.21	)		(1.34	)
Net Asset Value:
End of period		$20.17		$16.87			$16.34			$15.24			$14.54			$13.19
Total investment return 3		20.65%		4.93%			9.18%			6.46%			11.94%			(1.67%	)
Net assets at end of period (000’s omitted)		$37,380		$31,361			$30,823			$28,778			$25,623			$22,333
Ratios: 4
Expenses (without waiver)		1.25%5		1.25%	5		1.25%	5		1.25%	5		1.25%			1.25%
Expenses (with waiver)		1.00%5		1.00%	5		1.00%	5		1.06%	5		1.25%			1.25%
Net investment income (without waiver)		0.73%		1.11%			1.53%			1.59%			1.63%			1.56%
Net investment income (with waiver)		0.98%		1.36%			1.78%			1.78%			1.63%			1.56%
Portfolio turnover rate (excluding short-term securities)		6.98%6		22.15%			15.07%			19.80%			32.04%			48.30%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

DECEMBER 31, 2020 61

FINANCIAL HIGHLIGHTS

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

Sit Global Dividend Growth Fund

	Six Months Ended
Class S	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$16.85		$16.33			$15.22			$14.53			$13.18			$14.78
Operations:
Net investment income 1		0.07		0.18			0.24			0.23			0.19			0.18
Net realized and unrealized gains (losses)		3.38		0.56			1.11			0.66			1.33			(0.48	)
Total from operations		3.45		0.74			1.35			0.89			1.52			(0.30	)
Redemption fees		— 2		—	2		—			—			—			—
Distributions to Shareholders:
From net investment income		(0.13)		(0.22	)		(0.24	)		(0.20	)		(0.17	)		(0.30	)
From net realized gains		—		—			—			—			—			(1.00	)
Total distributions.		(0.13)		(0.22	)		(0.24	)		(0.20	)		(0.17	)		(1.30	)
Net Asset Value:
End of period		$20.17		$16.85			$16.33			$15.22			$14.53			$13.18
Total investment return 3		20.57%		4.60%			8.98%			6.13%			11.67%			(1.89%	)
Net assets at end of period (000’s omitted)		$3,701		$3,391			$3,241			$3,246			$3,274			$2,861
Ratios: 4
Expenses (without waiver)		1.50%5		1.50%	5		1.50%	5		1.50%	5		1.50%			1.50%
Expenses (with waiver)		1.25%5		1.25%	5		1.25%	5		1.31%	5		1.50%			1.50%
Net investment income (without waiver)		0.49%		0.87%			1.28%			1.33%			1.38%			1.31%
Net investment income (with waiver)		0.74%		1.12%			1.53%			1.52%			1.38%			1.31%
Portfolio turnover rate (excluding short-term securities)		6.98%6		22.15%			15.07%			19.80%			32.04%			48.30%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

62 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Large Cap Growth Fund

	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$47.07		$42.53			$42.40			$40.56			$36.02			$47.21
Operations:
Net investment income (loss) 1		(0.03)		0.07			0.16			0.13			0.21			0.18
Net realized and unrealized gains (losses)		10.79		8.60			3.61			6.55			7.07			(0.42	)
Total from operations		10.76		8.67			3.77			6.68			7.28			(0.24	)
Redemption fees 2		—		—			—			—			—			—
Distributions to Shareholders:
From net investment income		(0.02)		(0.12	)		(0.15	)		(0.17	)		(0.19	)		(1.44	)
From net realized gains		(2.90)		(4.01	)		(3.49	)		(4.67	)		(2.55	)		(9.51	)
Total distributions		(2.92)		(4.13	)		(3.64	)		(4.84	)		(2.74	)		(10.95	)
Net Asset Value:
End of period		$54.91		$47.07			$42.53			$42.40			$40.56			$36.02
Total investment return 3		22.92%		21.34%			10.54%			16.93%			21.18%			(0.89%	)
Net assets at end of period (000’s omitted)		$156,858		$129,154			$116,581			$118,792			$113,620			$117,459
Ratios: 4
Expenses		1.00%		1.00%			1.00%			1.00%			1.00%			1.00%
Net investment income (loss)		(0.10%)		0.17%			0.39%			0.30%			0.54%			0.44%
Portfolio turnover rate (excluding short-term securities)		6.51%5		14.53%			16.02%			15.20%			17.69%			20.05%

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

²  Amount represents less than $0.01 per share.

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

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

⁵  Not annualized.

DECEMBER 31, 2020 63

FINANCIAL HIGHLIGHTS

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

Sit ESG Growth Fund

	Six Months Ended
Class I	December 31, 2020		Year Ended		Year Ended		Year Ended		Year Ended
	(Unaudited)		June 30, 2020		June 30, 2019		June 30, 2018		June 30, 2017 *
Net Asset Value:
Beginning of period		$13.85		$13.21		$12.37		$11.29		$10.00
Operations:
Net investment income 1		0.04		0.12		0.17		0.16		0.11
Net realized and unrealized gains		2.56		0.74		0.83		1.03		1.20
Total from operations		2.60		0.86		1.00		1.19		1.31
Redemption fees		—  2		—		—		—		—
Distributions to Shareholders:
From net investment income		(0.10)		(0.17)		(0.16)		(0.11)		(0.02)
From net realized gains		—		(0.05)		—		—		—
Total distributions.		(0.10)		(0.22)		(0.16)		(0.11)		(0.02)
Net Asset Value:
End of period		$16.35		$13.85		$13.21		$12.37		$11.29
Total investment return 2		18.75%		6.47%		8.30%		10.57%		13.13%
Net assets at end of period (000’s omitted)		$4,250		$3,477		$3,387		$3,041		$2,349
Ratios: 3
Expenses (without waiver)		1.25%4		1.25%4		1.25%4		1.25%4		1.25%
Expenses (with waiver)		1.00%4		1.00%4		1.00%4		1.06%4		1.25%
Net investment income (without waiver)		0.30%		0.63%		1.14%		1.10%		1.01%
Net investment income (with waiver)		0.55%		0.88%		1.38%		1.29%		1.01%
Portfolio turnover rate (excluding short-term securities)		5.75%5		25.28%		9.26%		14.97%		27.60%

* The Fund commenced investment operations on June 30, 2016.

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 1.25% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund.

⁵  Not annualized.

64 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit ESG Growth Fund

	Six Months Ended
Class S	December 31, 2020		Year Ended		Year Ended		Year Ended		Year Ended
	(Unaudited)		June 30, 2020		June 30, 2019		June 30, 2018		June 30, 2017 *
Net Asset Value:
Beginning of period		$13.78		$13.16		$12.34		$11.28		$10.00
Operations:
Net investment income 1		0.02		0.08		0.14		0.13		0.08
Net realized and unrealized gains		2.54		0.74		0.83		1.03		1.21
Total from operations		2.56		0.82		0.97		1.16		1.29
Distributions to Shareholders:
From net investment income		(0.08)		(0.15)		(0.15)		(0.10)		(0.01)
From net realized gains		—		(0.05)		—		—		—
Total distributions		(0.08)		(0.20)		(0.15)		(0.10)		(0.01)
Net Asset Value:
End of period		$16.26		$13.78		$13.16		$12.34		$11.28
Total investment return 2		18.56%		6.22%		8.01%		10.37%		12.79%
Net assets at end of period (000’s omitted)		$3,713		$3,158		$2,895		$2,660		$2,321
Ratios: 3
Expenses (without waiver)		1.50%4		1.50%4		1.50%4		1.50%4		1.50%
Expenses (with waiver)		1.25%4		1.25%4		1.25%4		1.31%4		1.50%
Net investment income (without waiver)		0.05%		0.38%		0.89%		0.84%		0.76%
Net investment income (with waiver)		0.30%		0.63%		1.14%		1.03%		0.76%
Portfolio turnover rate (excluding short-term securities)		5.75%5		25.28%		9.26%		14.97%		27.60%

* The Fund commenced investment operations on June 30, 2016.

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 1.50% of average daily net assets. However, during the period above, the investment advisor voluntarily absorbed expenses that were otherwise payable by the Fund.

⁵  Not annualized.

DECEMBER 31, 2020 65

FINANCIAL HIGHLIGHTS

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

Sit Mid Cap Growth Fund

	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$19.05		$18.84			$18.96			$18.06			$15.36			$20.22
Operations:
Net investment loss 1		(0.04)		(0.05	)		(0.03	)		(0.03	)		—	2		(0.04	)
Net realized and unrealized gains (losses)		5.38		1.64			1.79			1.71			2.86			(1.92	)
Total from operations		5.34		1.59			1.76			1.68			2.86			(1.96	)
Redemption fees 2		—		—			—			—			—			—
Distributions to Shareholders:
From net investment income		—		—			—			—	2		—			—
From net realized gains		(0.98)		(1.38	)		(1.88	)		(0.78	)		(0.16	)		(2.90	)
Total distributions		(0.98)		(1.38	)		(1.88	)		(0.78	)		(0.16	)		(2.90	)
Net Asset Value:
End of period		$23.41		$19.05			$18.84			$18.96			$18.06			$15.36
Total investment return 3		28.05%		8.75%			11.76%			9.42%			18.74%			(9.97%	)
Net assets at end of period (000’s omitted)		$213,755		$172,744			$169,099			$158,501			$156,305			$139,523
Ratios: 4
Expenses		1.25%		1.25%			1.25%			1.25%			1.25%			1.25%
Net investment loss		(0.39%)		(0.27%	)		(0.16%	)		(0.17%	)		(0.01%	)		(0.23%	)
Portfolio turnover rate (excluding short-term securities)		9.65%5		25.58%			27.70%			28.89%			23.02%			21.57%

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

²  Amount represents less than $0.01 per share.

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

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

⁵  Not annualized.

66 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Small Cap Dividend Growth Fund

	Six Months Ended
Class I	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$11.39		$11.89			$12.27			$11.47			$10.00			$9.96
Operations:
Net investment income 1		0.07		0.13			0.15			0.11			0.12			0.14
Net realized and unrealized gains (losses)		3.16		(0.49	)		(0.25	)		0.80			1.46			0.02
Total from operations		3.23		(0.36	)		(0.10	)		0.91			1.58			0.16
Distributions to Shareholders:
From net investment income		(0.10)		(0.14	)		(0.15	)		(0.11	)		(0.11	)		(0.12	)
From net realized gains		—		—			(0.13	)		—			—			—	2
Total distributions.		(0.10)		(0.14	)		(0.28	)		(0.11	)		(0.11	)		(0.12	)
Net Asset Value:
End of period		$14.52		$11.39			$11.89			$12.27			$11.47			$10.00
Total investment return 3		28.48%		(3.05%	)		(0.54%	)		8.00%			15.84%			1.71%
Net assets at end of period (000’s omitted)		$14,813		$11,786			$12,559			$14,597			$12,716			$5,777
Ratios: 4
Expenses (without waiver)		1.25%5		1.25%5			1.25%5			1.25%5			1.25%			1.25%
Expenses (with waiver)		1.00%5		1.00%5			1.00%5			1.06%5			1.25%			1.25%
Net investment income (without waiver)		0.91%		0.90%			1.07%			0.75%			1.06%			1.46%
Net investment income (with waiver)		1.16%		1.15%			1.32%			0.94%			1.06%			1.46%
Portfolio turnover rate (excluding short-term securities)		14.69%6		27.58%			24.17%			29.74%			19.57%			26.43%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

DECEMBER 31, 2020 67

FINANCIAL HIGHLIGHTS

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

Sit Small Cap Dividend Growth Fund

	Six Months Ended
Class S	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$11.38		$11.88			$12.26			$11.46			$10.00			$9.96
Operations:
Net investment income 1		0.06		0.10			0.12			0.08			0.09			0.11
Net realized and unrealized gains (losses)		3.16		(0.49	)		(0.25	)		0.80			1.45			0.03
Total from operations		3.22		(0.39	)		(0.13	)		0.88			1.54			0.14
Distributions to Shareholders:
From net investment income		(0.08)		(0.11	)		(0.12	)		(0.08	)		(0.08	)		(0.10	)
From net realized gains		—		—			(0.13	)		—			—			—	2
Total distributions.		(0.08)		(0.11	)		(0.25	)		(0.08	)		(0.08	)		(0.10	)
Net Asset Value:
End of period		$14.52		$11.38			$11.88			$12.26			$11.46			$10.00
Total investment return 3		28.36%		(3.30%	)		(0.80%	)		7.74%			15.46%			1.46%
Net assets at end of period (000’s omitted)		$4,656		$3,720			$3,981			$3,882			$3,461			$2,587
Ratios: 4
Expenses (without waiver)		1.50%5		1.50%5			1.50%5			1.50%5			1.50%			1.50%
Expenses (with waiver)		1.25%5		1.25%5			1.25%5			1.31%5			1.50%			1.50%
Net investment income (without waiver)		0.66%		0.64%			0.82%			0.51%			0.81%			1.21%
Net investment income (with waiver)		0.91%		0.89%			1.07%			0.70%			0.81%			1.21%
Portfolio turnover rate (excluding short-term securities)		14.69%6		27.58%			24.17%			29.74%			19.57%			26.43%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

68 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Small Cap Growth Fund

	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$56.81		$55.46			$57.18			$54.18			$45.59			$60.10
Operations:
Net investment loss 1		(0.18)		(0.28	)		(0.25	)		(0.29	)		(0.24	)		(0.33	)
Net realized and unrealized gains (losses)		18.95		3.38			2.88			7.01			8.91			(8.97	)
Total from operations		18.77		3.10			2.63			6.72			8.67			(9.30	)
Redemption fees		—		—	2		—	2		—	2		—	2		—	2
Distributions to Shareholders:
From net realized gains		(2.51)		(1.75	)		(4.35	)		(3.72	)		(0.08	)		(5.21	)
Net Asset Value:
End of period		$73.07		$56.81			$55.46			$57.18			$54.18			$45.59
Total investment return 3		33.13%		5.68%			6.45%			12.68%			19.06%			(16.00%	)
Net assets at end of period (000’s omitted)		$132,179		$100,613			$99,630			$100,038			$90,817			$81,209
Ratios: 4
Expenses		1.50%		1.50%			1.50%			1.50%			1.50%			1.50%
Net investment loss		(0.54%)		(0.53%	)		(0.47%	)		(0.51%	)		(0.47%	)		(0.65%	)
Portfolio turnover rate (excluding short-term securities)		14.14%5		25.74%			26.34%			29.01%			29.08%			27.37%

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

²  Amount represents less than $0.01 per share.

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

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

⁵  Not annualized.

DECEMBER 31, 2020 69

FINANCIAL HIGHLIGHTS

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

Sit International Growth Fund

	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$17.38		$17.13			$16.75			$16.23			$14.48			$16.92
Operations:
Net investment income (loss) 1		(0.03)		0.06			0.16			0.19			0.14			0.12
Net realized and unrealized gains (losses)		3.90		0.36			0.40			0.47			1.68			(1.47	)
Total from operations		3.87		0.42			0.56			0.66			1.82			(1.35	)
Redemption fees		—		—	2		—			—	2		—	2		—
Distributions to Shareholders:
From net investment income		(0.05)		(0.17	)		(0.18	)		(0.14	)		(0.07	)		(0.09	)
From net realized gains		—		—			—			—			—			(1.00	)
Total distributions		(0.05)		(0.17	)		(0.18	)		(0.14	)		(0.07	)		(1.09	)
Net Asset Value:
End of period		$21.20		$17.38			$17.13			$16.75			$16.23			$14.48
Total investment return 3		22.25%		2.43%			3.55%			4.06%			12.64%			(8.19%	)
Net assets at end of period (000’s omitted)		$28,591		$23,005			$23,463			$23,875			$22,618			$20,440
Ratios: 4
Expenses		1.50%		1.50%			1.50%			1.50%			1.50%			1.50%
Net investment income (loss)		(0.26%)		0.35%			0.97%			1.11%			0.97%			0.76%
Portfolio turnover rate (excluding short-term securities)		5.03%5		13.38%			27.38%			16.35%			39.23%			37.94%

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

²  Amount represents less than $0.01 per share.

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

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

⁵  Not annualized.

70 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

FINANCIAL HIGHLIGHTS

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

Sit Developing Markets Growth Fund

	Six Months Ended
	December 31, 2020					Years Ended June 30,
	(Unaudited)		2020			2019			2018			2017			2016
Net Asset Value:
Beginning of period		$16.28		$16.21			$17.25			$15.23			$12.26			$14.77
Operations:
Net investment income (loss) 1		— 2		0.26			0.10			0.03			(0.02	)		0.04
Net realized and unrealized gains (losses)		4.61		0.11			(0.90	)		2.24			3.02			(2.18	)
Total from operations		4.61		0.37			(0.80	)		2.27			3.00			(2.14	)
Redemption fees		—		—	2		—			—	2		—			—	2
Distributions to Shareholders:
From net investment income		(0.02)		(0.30	)		(0.08	)		—			(0.03	)		(0.02	)
From net realized gains		(0.04)		—			(0.16	)		(0.25	)		—			(0.35	)
Total distributions		(0.06)		(0.30	)		(0.24	)		(0.25	)		(0.03	)		(0.37	)
Net Asset Value:
End of period		$20.83		$16.28			$16.21			$17.25			$15.23			$12.26
Total investment return 3		28.28%		2.20%			(4.43%	)		14.94%			24.56%			(14.42%	)
Net assets at end of period (000’s omitted)		$13,501		$10,260			$9,996			$11,027			$9,561			$7,297
Ratios: 4
Expenses (without waiver)		2.00%5		2.00%5			2.00%5			2.00%5			2.00%			2.00%
Expenses (with waiver)		1.40%5		1.40%5			1.40%5			1.54%5			2.00%			2.00%
Net investment income (loss) (without waiver)		(0.61%)		1.05%			0.03%			(0.26%	)		(0.18%	)		0.31%
Net investment income (loss) (with waiver)		(0.01%)		1.65%			0.63%			0.20%			(0.18%	)		0.31%
Portfolio turnover rate (excluding short-term securities)		4.14%6		4.15%			10.28%			30.30%			19.67%			28.14%

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

²  Amount represents less than $0.01 per share.

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

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

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

⁶  Not annualized.

DECEMBER 31, 2020 71

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Six Months Ended December 31, 2020

(1) Organization

Sit Mutual Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified, open-end management investment companies, or series thereof. The Sit Balanced, Sit Dividend Growth, Sit Global Dividend Growth, Sit ESG Growth, Sit Small Cap Dividend Growth, Sit Small Cap Growth, Sit International Growth, and Sit Developing Markets Growth are series funds of Sit Mutual Funds, Inc.

This report covers the equity funds of the Sit Mutual Funds (the Funds). Each fund has 10 billion authorized shares of capital stock with a par value of $0.001. The investment objective for each Fund is as follows:

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

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

(2) Significant Accounting Policies

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

Investments in Securities

Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Equity securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available, at the last reported bid price. The sale and bid prices or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Consistent with the Funds’ valuation policies and procedures, debt securities maturing in more than 60 days are priced by an independent pricing service. The pricing service may use models that price securities based on current yields and relative security characteristics, such as coupon rate, maturity date, issuer credit quality, and prepayment speeds as applicable. When market quotations are not readily available, or when the Adviser becomes aware that a significant event impacting the value of a security or group of securities has occurred after the closing of the exchange on which the security or securities principally trade, but before the calculation of the daily net asset value, securities are valued at fair value as determined in good faith using procedures established by the Board of Directors. The procedures consider, among

72 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security. Debt securities of sufficient credit quality maturing in less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value.

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

Fair Value Measurements

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

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

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

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

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

A summary of the levels for the Funds’ investments as of December 31, 2020 is included with the Funds’ schedule of investments.

Foreign Currency Translations and Forward Foreign Currency Contracts

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

The Global Dividend Growth, ESG Growth, International Growth and Developing Markets Growth Funds may enter into forward foreign currency exchange contracts generally for operational purposes, but the Adviser may occasionally utilize contracts to protect against adverse exchange rate fluctuation. Any gains (losses) generated by these contracts are disclosed separately on the statement of operations. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Funds and the resulting unrealized appreciation or depreciation is determined using foreign currency exchange rates from an independent pricing service. The Funds are subject to the credit risk that the other party will not complete the obligations of the contract.

DECEMBER 31, 2020 73

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Six Months Ended December 31, 2020 (Continued)

Federal Taxes

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

Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of December 31, 2020, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue until such time as the applicable statute of limitations for audit has expired. For example, U.S. tax returns are generally subject to audit for three years from the date they are filed.

At December 31, 2020, the gross unrealized appreciation (depreciation) on investments and cost of securities on a tax basis for federal income tax purposes were as follows:

	Unrealized Appreciation		Unrealized     Depreciation			Net Unrealized Appreciation     (Depreciation)		Cost of     Securities on a     Tax Basis
Balanced		$16,924,668		($118,275	)		$16,806,393		$44,195,636
Dividend Growth		63,089,258		(399,141	)		62,690,117		159,452,575
Global Dividend Growth		16,531,758		(87,330	)		16,444,428		24,616,756
Large Cap Growth		96,337,604		(268,900	)		96,068,704		61,174,723
ESG Growth		2,923,106		(7,973	)		2,915,133		5,040,922
Mid Cap Growth		115,461,518		(118,138	)		115,343,380		98,737,913
Small Cap Dividend Growth		5,977,568		(208,397	)		5,769,171		13,735,807
Small Cap Growth		66,914,721		(297,138	)		66,617,583		65,679,186
International Growth		11,106,613		(240,225	)		10,866,388		17,699,409
Developing Markets Growth		5,967,780		(563,799	)		5,403,981		8,090,069

Net investment income and net realized gains differ for financial statement and tax purposes because of corporate actions on shares held and/or losses deferred due to “wash sale” transactions. A “wash sale” occurs when a Fund sells a security that it has acquired within a period beginning thirty days before and ending thirty days after the date of sale (a sixty one day period). The character of distributions made during the year from net investment income or net realized gains may also differ from its ultimate characterization for tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the Funds. The tax character of distributions paid during the fiscal years ended June 30, 2020 and 2019 were as follows:

74 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Year Ended June 30, 2020:
	Ordinary Income		Long Term Capital Gain		Total
Balanced		$486,523		$1,649,782		$2,136,305
Dividend Growth (Class I)		4,432,308		20,913,570		25,345,878
Dividend Growth (Class S)		695,533		3,711,611		4,407,144
Global Dividend Growth (Class I)		495,881		—		495,881
Global Dividend Growth (Class S)		45,123		—		45,123
Large Cap Growth		313,002		10,438,682		10,751,684
ESG Growth (Class I)		43,224		12,226		55,450
ESG Growth (Class S)		33,888		10,635		44,523
Mid Cap Growth		—		12,018,685		12,018,685
Small Cap Dividend Growth (Class I)		143,293		—		143,293
Small Cap Dividend Growth (Class S)		37,709		—		37,709
Small Cap Growth		—		3,070,107		3,070,107
International Growth		227,001		—		227,001
Developing Markets Growth		185,000		—		185,000
Year Ended June 30, 2019:
	Ordinary Income		Long Term Capital Gain		Total
Balanced		$459,001		$342,301		$801,302
Dividend Growth (Class I)		17,847,831		86,972,912		104,820,743
Dividend Growth (Class S)		1,193,973		7,639,936		8,833,909
Global Dividend Growth (Class I)		521,860		—		521,860
Global Dividend Growth (Class S)		49,144		—		49,144
Large Cap Growth		456,987		9,477,676		9,934,663
ESG Growth (Class I)		40,551		—		40,551
ESG Growth (Class S)		31,449		—		31,449
Mid Cap Growth		1,152,232		14,273,917		15,426,149
Small Cap Dividend Growth (Class I)		169,480		147,220		316,700
Small Cap Dividend Growth (Class S)		38,521		42,395		80,916
Small Cap Growth		—		7,455,033		7,455,033
International Growth		245,338		—		245,338
Developing Markets Growth		49,252		102,896		152,148

DECEMBER 31, 2020 75

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Six Months Ended December 31, 2020 (Continued)

As of June 30, 2020, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)
Balanced		$183,595		$381,405		—			$9,662,762
Dividend Growth		821,481		12,122,888		($6,693,354	)		30,434,251
Global Dividend Growth		139,947		—		(1,047,906	)		9,018,289
Large Cap Growth		63,675		4,230,801		—			71,680,331
ESG Growth		21,980		—		(96,362	)		1,753,148
Mid Cap Growth		—		4,894,109		(260,780	)		77,717,546
Small Cap Dividend Growth		37,627		—		(253,454	)		1,726,092
Small Cap Growth		—		702,416		(733,699	)		40,214,033
International Growth		61,406		—		(1,422,363	)		5,386,080
Developing Markets Growth		10,868		—		(31,404	)		2,608,634

Net capital loss carryovers and late year losses, if any, as of June 30, 2020, are available to offset future realized capital gains and thereby reduce future capital gains distributions. The Funds’ are permitted to carry forward capital losses for an unlimited period. Capital losses that are carried forward retain their character as either short-term or long-term capital losses. The net capital loss carryovers and the late year losses deferred as of June 30, 2020, were as follows:

	Unlimited Period of Net				Late Year
	Capital Loss Carryover				Losses Deferred
	Short-Term		Long-Term		Ordinary		Capital
Dividend Growth		—		—		—		$6,693,354
Global Dividend Growth		$1,047,906		—		—		—
ESG Growth		—		—		—		96,362
Mid Cap Growth		—		—		$260,780		—
Small Cap Dividend Growth		101,296		$152,158		—		—
Small Cap Growth		—		—		286,404		447,295
International Growth		1,086,655		335,708		—		—
Developing Markets Growth		31,404		—		—		—

For the year ended June 30, 2020, the Funds’ utilized capital losses and expired capital losses as follows:

	Utilized		Expired
Global Dividend Growth		$133,881	—
ESG Growth		126,311	—

Distributions

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

Concentration of Investments

The Developing Markets Growth Fund may concentrate investments in countries with limited or developing capital markets which may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The consequences

76 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund’s investments and the income it generates, as well as the Fund’s ability to repatriate such amounts.

Use of Estimates

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

Guarantees and Indemnifications

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

(3) Investment Security Transactions

The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the six months ended December 31, 2020, were as follows:

	Purchases				Proceeds
	U.S. Government		Other		U.S. Government		Other
Balanced		$3,954,013		$12,943,811		$1,876,147		$7,349,854
Dividend Growth		—		44,441,682		—		61,736,884
Global Dividend Growth		—		2,561,756		—		2,823,307
Large Cap Growth		—		9,224,751		—		10,733,064
ESG Growth		—		726,273		—		400,001
Mid Cap Growth		—		17,824,683		—		21,322,402
Small Cap Dividend Growth		—		2,434,551		—		2,755,829
Small Cap Growth		—		15,601,111		—		16,637,779
International Growth		—		1,404,681		—		1,252,978
Developing Markets Growth		—		501,426		—		453,788

DECEMBER 31, 2020 77

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Six Months Ended December 31, 2020 (Continued)

(4) Affiliated Fees and Transactions

Investment Adviser

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

				Net of Adviser’s
	Management Fee			Voluntary Fee Waiver
Balanced		1.00	%		N/A
Dividend Growth Fund Class I and Class S		1.00	%		0.70	%
Global Dividend Growth Fund Class I and Class S		1.25	%		1.00	%
Large Cap Growth		1.00	%		N/A
ESG Growth Fund Class I and Class S		1.25	%		1.00	%
Mid Cap Growth		1.25	%		N/A
Small Cap Dividend Growth Fund Class I and Class S		1.25	%		1.00	%
Small Cap Growth		1.50	%		N/A
International Growth		1.50	%		N/A
Developing Markets Growth		2.00	%		1.40	%

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

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

Effective October 1, 2017, the Adviser has agreed to limit the management fee of the Dividend Growth Fund to 0.70%, the Global Dividend Growth Fund to 1.00%, the ESG Growth Fund to 1.00%, the Small Cap Dividend Growth Fund to 1.00% and the Developing Markets Growth Fund to 1.40% for the period through June 30, 2021 of the Fund’s daily average net assets, respectively.

Transactions with affiliates

The investment adviser, affiliates of the investment adviser, directors and officers of the Funds as a whole owned the following shares as of December 31, 2020:

			% Shares
	Shares		Outstanding
Balanced		371,639		18.2
Dividend Growth		1,615,890		11.0
Global Dividend Growth		517,211		25.4
Large Cap Growth		790,815		27.7
ESG Growth		464,165		95.0
Mid Cap Growth		4,459,382		48.8
Small Cap Dividend Growth		670,250		50.0
Small Cap Growth		1,028,178		56.8
International Growth		790,726		58.6
Developing Markets Growth		310,711		47.9

78 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

(5) Capital Share Activity

Short-Term Trading (Redemption) Fees

The Funds (except Balanced) charge a redemption fee equal to 2.00% of the proceeds on shares held for less than 30 calendar days. The fee is retained by the Fund for the benefit of its long-term shareholders and accounted for as an addition to paid in capital. For the six months ended December 31, 2020, the Funds received the following redemption fees:

	Class I		Class S
Dividend Growth		$44		$—
Global Dividend Growth		27		2
Large Cap Growth		2,729		—
ESG Growth		1		—
Mid Cap Growth		2		—

DECEMBER 31, 2020 79

EXPENSE EXAMPLE (Unaudited)

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

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2020 to December 31, 2020.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

Fund	Beginning Account Value (7/1/20)			Ending Account Value (12/31/20)			Expenses Paid During Period* (7/1/20- 12/31/20)
Balanced Fund
Actual		$	1,000		$	1,154.70		$	5.43
Hypothetical		$	1,000		$	1,020.16		$	5.09
Dividend Growth Fund
Actual
Class I		$	1,000		$	1,206.60		$	3.89
Class S		$	1,000		$	1,205.60		$	5.28
Hypothetical
Class I		$	1,000		$	1,021.68		$	3.57
Class S		$	1,000		$	1,020.42		$	4.84
Global Dividend Growth Fund
Actual
Class I		$	1,000		$	1,206.50		$	5.56
Class S		$	1,000		$	1,205.70		$	6.95
Hypothetical
Class I		$	1,000		$	1,020.16		$	5.09
Class S		$	1,000		$	1,018.90		$	6.36
Large Cap Growth Fund
Actual		$	1,000		$	1,229.20		$	5.62
Hypothetical		$	1,000		$	1,020.16		$	5.09
ESG Growth Fund
Actual
Class I		$	1,000		$	1,187.50		$	5.51
Class S		$	1,000		$	1,185.60		$	6.89
Hypothetical
Class I		$	1,000		$	1,020.16		$	5.09
Class S		$	1,000		$	1,018.90		$	6.36
Mid Cap Growth Fund
Actual		$	1,000		$	1,280.50		$	7.19
Hypothetical		$	1,000		$	1,018.90		$	6.36
Small Cap Dividend Growth Fund
Actual
Class I		$	1,000		$	1,284.80		$	5.76
Class S		$	1,000		$	1,283.60		$	7.19
Hypothetical
Class I		$	1,000		$	1,020.16		$	5.09
Class S		$	1,000		$	1,018.90		$	6.36

80 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

EXPENSE EXAMPLE (Unaudited) (Continued)

Fund	Beginning Account Value (7/1/20)			Ending Account Value (12/31/20)			Expenses Paid During Period* (7/1/20- 12/31/20)
Small Cap Growth Fund
Actual		$	1,000		$	1,331.30		$	8.81
Hypothetical		$	1,000		$	1,017.64		$	7.63
International Growth Fund
Actual		$	1,000		$	1,222.50		$	8.40
Hypothetical		$	1,000		$	1,017.64		$	7.63
Developing Markets Growth Fund
Actual		$	1,000		$	1,282.80		$	8.06
Hypothetical		$	1,000		$	1,018.15		$	7.12

*Expenses are equal to the Fund’s annualized expense ratio of 0.70% for the Dividend Growth, Class I Fund; 0.95% for the Dividend Growth, Class S Fund; 1.00%, for the Balanced, Global Dividend Growth, Class I, Large Cap Growth, ESG Growth, Class I, and Small Cap Dividend Growth, Class I Funds; 1.25% for Dividend Growth, Class S, Global Dividend Growth, Class S, ESG Growth, Class S, Mid Cap Growth, and Small Cap Dividend Growth, Class S Funds;1.40% for Developing Markets Growth Fund and 1.50% for Small Cap Growth, and International Growth Funds, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period.)

DECEMBER 31, 2020 81

ADDITIONAL INFORMATION (Unaudited)

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 SCHEDULE OF INVESTMENTS SCHEDULES

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

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

At their joint meeting held on October 19, 2020, the Boards of Directors (the “Boards”) of the Sit Mutual Funds (the “Funds”) reviewed the Funds’ liquidity risk management program (the “Program”) pursuant to the Liquidity Rule. Sit Investment Associates, Inc. (“SIA”), the investment adviser to the Funds, serves as the Program Administrator and provided the Boards with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation and any material changes to the Program as of September 30, 2020 (the “Report”).

The Report described its liquidity classification methodology and the determination that a Highly Liquid Investment Minimum is not currently necessary for any Fund. The Report also noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing, and periodically reviewing liquidity risk, as follows:

A. Each Fund’s investment strategy and liquidity of investments during both normal and reasonably foreseeable stressed conditions: SIA reviewed each Fund’s strategy and the determinations that each strategy remains appropriate for an open-end fund. This determination was based on each Fund’s holding’s liquidity, diversification, and average position size.

B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions: The Report indicated that it considered historical net redemption activity and shareholder ownership concentration and distribution channels to determine each Fund’s Reasonably Anticipated Trading Size. It was also noted that each Fund has adopted an in-kind redemption policy which may be utilized to meet large redemption requests.

C. Holdings of cash and cash equivalents, as well as borrowing arrangements: The report reviewed each Fund’s holdings of cash and cash equivalents, available borrowing arrangements if any, and other funding sources.

There were no material changes to the Program during the past year. The Report stated that SIA concluded that the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

82 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

ADDITIONAL INFORMATION (Unaudited) (Continued)

RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

At their joint meeting held on October 19, 2020 the Boards of Directors of the Sit Mutual Funds unanimously approved the continuation for another one year period the investment management agreements entered into by and between Sit Investment Associates, Inc. (“SIA”) and Sit Mid Cap Growth Fund, Inc. dated November 1, 1996; Sit Large Cap Growth Fund, Inc. dated November 1, 1996; and Sit Mutual Funds Inc., dated November 1, 1992 (the “Agreements”).

The Boards approved the Agreements after a lengthy discussion and consideration of various factors relating to the Boards’ selection of SIA as the investment adviser, and the Boards’ approval of the fees to be paid under the Agreements.

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

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

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

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

The Directors discussed the depth of SIA’s investment staff. The Directors noted that SIA has over 30 investment professionals. Given the investment products offered by SIA and the 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 the number of clients and assets under management for the near future. The Directors concluded that the depth of the 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 a $14.9 billion investment firm working for the benefit of the Fund shareholders.

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

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

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

DECEMBER 31, 2020 83

ADDITIONAL INFORMATION (Unaudited) (Continued)

Investment Performance. The Directors reviewed investment performance of each Fund for 1 month, 3 months, 6 months, year-to-date, 1 year, 5 years (as applicable), 10 years (as applicable) and since inception, 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 their stated objectives and strategies on a comparable basis with funds with similar objectives and strategies.

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

The Directors compared each Fund’s expense ratio to the average and median expense ratios of no-load mutual funds within the same Morningstar, Inc. investment category, the average expense ratios for load funds within the Morningstar category, and the average expense ratios for all funds within the Morningstar category. Certain of the Fund’s expense ratios were higher than the averages, and certain of the Fund’s expense ratios were lower than the averages. The Directors noted that the Morningstar no-load categories include funds of various asset sizes, some of which are significantly larger in assets than the Funds. The Directors found each Fund’s total expense ratio to be within an acceptable range compared to the total expense ratios of other no-load funds within the Fund’s Morningstar category. 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, negotiating a graduated fee structure for each Fund is unnecessary at this time since the fees to be paid under the current Agreements are 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 the management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate.

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 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 SIA clients were appropriate and reasonable. The Directors also concluded that SIA’s profit margin with respect to the management of the Funds was appropriate.

The Directors discussed the extent to which SIA receives benefits from the 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 Board concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms and are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable.

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

Based on these conclusions, without any single conclusion being dispositive, the Directors determined that renewal of the Agreements was in the interest of each Fund and its shareholders.

84 SIT MUTUAL FUNDS SEMI-ANNUAL REPORT

Semi-Annual Report
December 31, 2020
INVESTMENT ADVISER	INDEPENDENT REGISTERED PUBLIC
Sit Investment Associates, Inc.	ACCOUNTING FIRM
80 S. Eighth Street	KPMG LLP
Suite 3300	Minneapolis, MN
Minneapolis, MN 55402
	GENERAL COUNSEL
CUSTODIAN	Dorsey & Whitney LLP
The Bank Of New York Mellon	Minneapolis, MN
111 Sanders Creek Parkway
Syracuse, NY 13057
TRANSFER AGENT AND
DISBURSING AGENT
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, MA 01581

	Sit Mutual Funds
1-800-332-5580
www.sitfunds.com

Sit Stock 12-20

Item 2: Code of Ethics. Not applicable to Semi-Annual Report.

Item 3: Audit Committee Financial Expert.     Not applicable to Semi-Annual Report.

Item 4: Principal Accountant Fees and Services.     Not applicable to Semi-Annual Report.

Item 5: Audit Committee of Listed Registrants.

Not applicable to open-end investment companies.

Item 6: Schedule of Investments.

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

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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

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

Item 11:   Controls and Procedures -

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

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

Item 12:   Exhibits:

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

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

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

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 Large Cap Growth Fund, Inc.
By	(Signature and Title)	/s/ Paul E. Rasmussen
		Paul E. Rasmussen
		Vice President, Treasurer
Date	February 26, 2021

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
		Vice President, Treasurer
Date	February 26, 2021
By	(Signature and Title)	/s/ Roger J. Sit
		Roger J. Sit
		Chairman
Date	February 26, 2021