-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VXb9MgFZVw4brI9X+tHHea4/FCIrjNUAOO9LQzwsiueV36CNfV3N0ha+tLOAoDyQ UaXurVIRBAP1nLa4JWatQA== 0000897101-09-000122.txt : 20090122 0000897101-09-000122.hdr.sgml : 20090122 20090122111841 ACCESSION NUMBER: 0000897101-09-000122 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20081231 FILED AS OF DATE: 20090122 DATE AS OF CHANGE: 20090122 EFFECTIVENESS DATE: 20090122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIT MUTUAL FUNDS II INC CENTRAL INDEX KEY: 0000746601 IRS NUMBER: 000000000 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04033 FILM NUMBER: 09538342 BUSINESS ADDRESS: STREET 1: 3300 IDS CTR, 80 S. 8TH STREET CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 612-332-3223 MAIL ADDRESS: STREET 1: 3300 IDS CTR, 80 S. 8TH STREET CITY: MINNEAPOLIS STATE: MN ZIP: 55402 FORMER COMPANY: FORMER CONFORMED NAME: SIT NEW BEGINNING TAX FREE INCOME FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SIT NEW BEGINNING YIELD FUND INC DATE OF NAME CHANGE: 19880929 FORMER COMPANY: FORMER CONFORMED NAME: NEW BEGINNING YIELD FUND INC DATE OF NAME CHANGE: 19870907 0000746601 S000003467 Sit Tax-Free Income Fund C000009601 Sit Tax-Free Income Fund SNTIX 0000746601 S000003468 Sit Minnesota Tax-Free Income Fund C000009602 Sit Minnesota Tax-Free Income Fund SMTFX 0000746601 S000015046 Sit High Income Municipal Bond Fund C000040905 Class I SHIUX N-Q 1 sit-mfii090279_nq.txt FORM N-Q DATED DECEMBER 31, 2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-04033 SIT MUTUAL FUNDS II, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) 3300 IDS Center, 80 S. 8th Street, Minneapolis, MN 55402 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) Kelly K. Boston, Esq. 3300 IDS Center, 80 S. 8th Street Minneapolis, MN 55402 (NAME AND ADDRESS OF AGENT FOR SERVICE) Registrant's telephone number, including area code: 612-332-3223 Date of fiscal year end: March 31, 2008 Date of reporting period: December 31, 2008 ITEM 1. SCHEDULE OF INVESTMENTS ----------------------- The Registrant, Sit Mutual Funds II, Inc., is comprised of: Sit Tax-Free Income Fund (Series A) Sit Minnesota Tax-Free Income Fund (Series B) Sit High Income Municipal Bond Fund - Class I (Series D) THE SCHEDULE OF INVESTMENTS FOR EACH SERIES OF THE REGISTRANT AS OF THE DATE ON THE COVER OF THIS REPORT HAS NOT BEEN AUDITED. THIS REPORT IS PROVIDED FOR THE GENERAL INFORMATION OF THE FUND'S SHAREHOLDERS. FOR MORE INFORMATION REGARDING A PARTICULAR FUND AND ITS HOLDINGS, PLEASE SEE THAT FUND'S MOST RECENT PROSPECTUS AND ANNUAL REPORT.
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS (90.7%) (2) ALABAMA (1.1%) 460,000 ASMS Pub. Educ. Bldg. Rev Series 2006-B (ASMSF LLC Proj.) (Ambac insured), 4.375%, 9/1/26 418,867 675,000 Birmingham-Southern College Private Educ. Bldg. Rev. Series 1997, 5.35%, 12/1/19 509,807 500,000 Huntsville Hlth. Care Auth. Rev. Series 2002-A, 5.625%, 6/1/32 432,930 200,000 Huntsville-Redstone Vlg. Spl. Care Facs. Fin. Auth. Rev Series 2007 (Redstone Vlg. Proj.), 5.25%, 1/1/15 167,238 ---------------- 1,528,842 ---------------- ALASKA (0.4%) 500,000 Alaska Hsg. Fin. Corp. Gen. Mtg. Rev. Series 1999-A, 6.00%, 6/1/49 487,085 ---------------- ARIZONA (3.7%) 1,136,180 Arizona Hlth. Facs. Auth. Rev. Series 2007-A (New Ariz. Family Proj.), 5.25%, 7/1/27 725,462 50,000 Maricopa Co. Pollution Ctrl. Rev. Ref. Public Svc. Series 1996-A (New Mexico Public Svc. Co. Proj.), 6.30%, 12/1/26 37,752 Pima Co. Indl. Dev. Auth. Educ. Rev.: 295,000 Series 2004-I (AZ Charter Schools Proj.), 5.00%, 7/1/12 273,686 250,000 Series 2004-I (AZ Charter Schools Proj.), 6.10%, 7/1/24 183,855 250,000 Series 2004-A (Noah Webster Basic School Proj.), 5.25%, 12/15/16 212,328 210,000 Series 2005-M (AZ Charter Schools Proj.), 5.70%, 7/1/23 152,859 635,000 Series 2006 (Choice Educ. & Dev. Corp. Proj.), 6.00%, 6/1/16 554,933 455,000 Series 2007-A (American Charter Schools Foundation Proj.), 5.125%, 7/1/15 391,659 545,000 Series 2007-O (AZ Charter Schools Proj.), 4.65%, 7/1/14 472,041 400,000 Ref. Series 2007 (Tucson Country Day School Proj.), 5.00%, 6/1/22 283,372 500,000 Series 2007 (Center For Academic Success Proj.), 5.375%, 7/1/22 367,195 250,000 Series 2008-A (Coral Academy Science Proj.), 6.375%, 12/1/18 211,305 565,000 Pinal Co. Indl. Dev. Auth. Correctional Fac. Rev. Series 2006-A (Florence West Prison Proj.) (ACA insured), 5.25%, 10/1/23 420,648 500,000 Quail Creek Cmnty. Fac. Dist. G.O. Series 2006, 5.15%, 7/15/16 398,955 500,000 Westpark Cmnty. Facilities Dist. G.O. Series 2006, 4.90%, 7/15/16 389,175 ---------------- 5,075,225 ---------------- CALIFORNIA (5.0%) 305,000 CA Co. Tobacco Securitization Agy. Asset-Backed Rev. Series 2002 (Alameda Co.), 4.75%, 6/1/19 276,473 350,000 CA Co. Tobacco Securitization Agy. Asset-Backed Conv. Bond Rev. Series 2007-B, 5.10%, 6/1/28 210,581 CA Co. Tobacco Securitization Agy. Rev. Series 2007-A (Golden Gate Tob. Proj.): 440,000 4.50%, 6/1/21 322,964 500,000 5.00%, 6/1/36 264,425 CA Cmnty. Hsg. Fin. Agy. Lease Rev. Pass Thru Oblig.: 120,000 Series 2005-D, 4.875%, 4/1/12 110,310 355,000 Series 2005-F, 4.85%, 11/1/12 323,877 495,000 CA Govt. Fin. Auth. Lease Rev. Series 2003-A (Placer Co. Transportation Proj.), 6.00%, 12/1/28 384,942 600,000 CA Fin. Auth. Educ. Rev. Series 2006-A (American Heritage Educ. Fndtn. Proj.), 5.25%, 6/1/26 390,420 CA Public Works Board Lease Rev. Series 1993-A (Various CA State Univ. Proj.): 255,000 5.25%, 12/1/13 255,622 625,000 5.50%, 12/1/18 625,300 1,000,000 CA Statewide Cmntys. Dev. Auth. Rev. Series 2007 (Lancer Educ. Student Hsg. Proj.), 5.40%, 6/1/17 760,170 450,000 CA Statewide Cmntys. Dev. Auth. Spl. Tax Series 2007-1 (Orinda Proj.), 6.00%, 9/1/29 310,932 600,000 CA Statewide Cmntys. Dev. Auth. Multifamily Rev. Series 2001 (Orange Tree Proj.) (GNMA collateralized), 6.15%, 11/20/36 630,918 235,000 Garden Grove C.O.P Series 1993 (Bahia Village/Emerald Isle Proj.)(FSA insured), 5.70%, 8/1/23 235,891 500,000 Northern CA Gas Auth. No. 1 Rev. Series 2007, variable rate, 7/1/27 158,750 500,000 Sacramento Co. Wtr. Fin. Auth. Rev. Series 2007-B (Wtr. Agy. Zones 40 & 41 Proj.), Variable rate, 6/1/39 230,000 1,000,000 San Bernardino City. Sch. Dist. G.O. Cap. Appreciation Series 2007 (MBIA insured), zero coupon, 4.72% effective yield, 8/1/29 250,880 250,000 San Joaquin Hills Toll Rd. Rev. Refunding Series 1997-A, 5.25%, 1/15/30 154,018 Santa Rosa Rancheria Tachi Yokut Tribe Enterprise Rev. Series 2006: 95,000 4.50%, 3/1/11 86,551 385,000 4.875%, 3/1/16 272,295 350,000 Southwest Cmnty. Fin. Auth. Rev. Series 2008 (Riverside Co. Proj.), 6.00%, 5/1/24 360,549 250,000 Stockton Pub. Fin. Rev. Series 2006-A (Redevelopment Projects) (Radian insured), 5.00%, 9/1/22 199,848 250,000 Yuba Redev. Agy. Tax. Allocation Series 2007, 5.125%, 9/1/27 163,305 ---------------- 6,979,021 ----------------
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- COLORADO (2.8%) 250,000 Baptist Rd. Rural Transportation Auth. Sales & Use Tax. Rev. Series 2007, 4.80%, 12/1/17 173,192 CO HFA Single Family Program Senior Series: 10,000 1997B-3, 6.80%, 11/1/28 10,209 750,000 2008A-5, 5.00%, 11/1/34 725,925 160,000 CO Hlth. Fac. Auth. Rev. Series 2000-A (Porter Place Proj.) (GNMA collateralized), 5.10%, 1/20/11 162,902 1,000,000 Compark Business Campus Met. Dist. Ref. & Impt. G.O. Series 2007-A (Radian insured), 5.75%, 12/1/27 827,180 985,000 Denver Hlth. & Hosp. Auth. Healthcare Rev. Series 2007-B, variable rate, 12/1/33 394,000 250,000 E-470 Pub. Hwy. Auth. Rev. Series 2007C-1, 5.50%, 9/1/24 207,357 50,000 Interlocken Met. Dist. Ref. Impt. G.O. Series 1999-B (Radian insured), 5.75%, 12/15/19 41,001 835,305 Lyons Rev. Series 2006 (Longmont Humane Soc. Proj.), 4.75%, 11/30/16 684,700 500,000 Maher Ranch Met. Dist. No. 4 Ref. G.O. Series 2007 (Radian insured), 5.25%, 12/1/36 322,650 500,000 Walker Field Pub. Airport Auth. Rev. Series 2007, 4.75%, 12/1/27 318,285 ---------------- 3,867,401 ---------------- CONNECTICUT (0.7%) 450,000 CT Hlth. & Educ. Facs. Auth. Rev. Series 1995-C (Bridgeport Hosp. Proj.) (Connie Lee insured), 5.25%, 7/1/15 439,483 300,000 Series 1997-B, 5.75%, 9/1/18 226,533 500,000 Series 1999-B, zero coupon, 5.12% effective yield, 9/1/26 299,895 ---------------- 965,911 ---------------- DELAWARE (0.2%) 500,000 Millsboro Spl. Oblig. Rev. Series 2007-A (Plantation Lakes Spl. Dev. Proj.), 5.45%, 7/1/36 269,415 ---------------- FLORIDA (9.8%) 80,000 Arbor Greene Cmnty. Dev. Dist. Spl. Assmt. Rev. Ref. Series 2006, 5.00%, 5/1/19 64,888 775,000 Belmont Cmnty. Dev. Dist. Cap. Impt. Rev. Series 2006-B, 5.125%, 11/01/14 (3) 310,000 100,000 Broward Co. Hsg. Fin. Auth. Multifamily Hsg. Rev. Ref. Series 1996 (Tamarac Pointe Apt. Proj.) (GNMA collateralized), 6.15%, 7/1/16 100,097 Capital Trust Agy. Multifamily Rev. Sr. Series 2003-A: 535,000 (Golf Villas, Rivermill, and Village Square Apts. Proj.), 4.75%, 6/1/13 441,118 1,000,000 (American Opportunity Proj.), 5.875%, 6/1/38 527,560 40,000 Clearwater Hsg. Auth. Rev. Ref. Series 1997 (Hamptons At Clearwater Proj.) (ACA insured), 5.40%, 5/1/13 35,965 45,000 Cocoa Cap. Impt. Rev. Series 1998 (MBIA insured), 5.00%, 10/1/22 42,555 50,000 Collier Co. Indl. Dev. Auth. Hlth. Care Facs. Rev. Series 2004 (Naples Cmnty. Hosp. Proj.), 4.65%, 10/1/34 49,207 435,000 Concorde Estates Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2004-B, 5.00%, 5/1/11 261,000 400,000 Connerton West Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2007-B, 5.125%, 5/1/16 241,072 630,000 Escambia Co. Hlth. Facs. Auth. Rev. Series 1998 (Baptist Hosp. & Manor Proj.), 5.125%, 10/1/19 523,284 100,000 Fiddlers Creek Cmnty. Dev. Dist. No. 2 Spl. Assmt. Rev. Series 2003-B, 5.75%, 5/1/13 88,044 25,000 FL Brd. Pub. Educ. Cap. Outlay G.O. Ref. Series 1989-A, 5.00%, 6/1/24 25,001 45,000 FL Correctional Privatization Commn. Certificate of Participation Series 1995-B (Polk Co. 350 Bed Youth Proj.), 5.00%, 8/1/17 45,020 85,000 Forest Creek Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. Rev. Series 2005-B, 4.85%, 5/1/11 63,456 340,000 Heritage Isle At Viera Cmnty. Dev. Dist. Special Assessment Series 2006, 5.00%, 11/1/13 278,868 Highlands Co. Hlth. Facs. Auth. Rev. (Adventist Health Proj.): 10,000 Ref. Series 2005-B, 5.00%, 11/15/30 11,446 80,000 Series 2005-B, 5.00%, 11/15/30 59,830 5,000 Ref. Series 2006-C, 5.25%, 11/15/36 5,766 195,000 Series 2006-C, 5.25%, 11/15/36 146,351 80,000 Hillsborough Co. Educ. Facs. Auth Rev. Ref. Series 1998 (Univ. of Tampa Proj.), 5.75%, 4/1/18 81,784 250,000 Hillsborough Co. Indl. Dev. Auth. Hosp. Rev. Ref. Series 2003-B (Tampa Gen. Hosp. Proj.), 5.25%, 10/1/28 175,600 250,000 Gramercy Farms Cmnty. Dev. Dist. Spl. Assessment Series 2007-B, 5.10%, 5/1/14 125,000 560,000 Jacksonville Econ. Dev. Commn. Hlth. Care Facs. Rev. Ref. Series 2007-A (FL Proton Therapy Inst. Proj.), 6.00%, 91/17 455,045 500,000 Jacksonville Hlth. Facs. Auth. Rev. Series 2007 (Brooks Hlth. Sys. Proj.), 5.00%, 11/1/22 390,210 500,000 Lake Ashton Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/11 300,480 165,000 Lakeland Hosp. Sys. Rev. Ref. Series 1996 (Lakeland Regl. Med. Center Proj.), 5.25%, 11/15/25 132,198 1,000,000 Lee Co. Indus. Dev. Auth. Hlth. Care Fac. Rev. Series 2007-A (Lee Charter Foundation), 5.25%, 6/15/27 598,930 250,000 Magnolia Creek Cmnty. Dev. Dist. Rev. Series 2007-B, 5.60%, 5/1/14 150,000 300,000 Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.25%, 11/1/14 158,124 500,000 Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2008-B, 6.90%, 5/1/17 384,220 820,000 Miami Beach Hlth. Facs. Auth. Hosp. Rev. Series 1998 (Mt. Sinai Med. Ctr. Proj.), 5.375%, 11/15/28 433,198 100,000 Miami Beach Stormwater Rev. Series 2000 (FGIC insured), 5.25%, 9/1/25 94,882 Miami - Dade Co. Spl. Obligation: 265,000 Sub. Series 1997-B, zero coupon, 5.44% effective yield, 10/1/33 51,717 100,000 Cap. Apprec. & Income Sub Series 2005-B, variable rate, 10/1/35 79,540
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 40,000 Miami-Dade Co. Pub. Service Tax Rev. Series 1999 (UMSA Pub. Impts. Proj.), 5.00%, 10/1/23 39,791 750,000 Miami-Dade Co. Wtr. & Swr. Rev. Ref. Series 2008-C, 6.00%, 10/1/23 774,503 1,000,000 New River Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 5/1/13 400,000 70,000 Orange Co. Hlth. Facs. Auth. Rev. Ref. Series 2005 (Orlando Lutheran Proj.), 4.625%, 7/1/09 69,187 60,000 Orlando & Orange Co. Expressway Auth. Rev. Jr. Lien Series 1998, 5.00%, 7/1/28 54,896 Palm Beach Co. Hlth. Fac. Auth. Rev.: 200,000 Ref. Series 2003 (Abbey Delray South Proj.), 5.15%, 10/1/12 183,786 90,000 Series 1993 (Jupiter Med. Ctr. Inc. Proj.) (FSA insured), 5.25%, 8/1/18 88,871 10,000 Parklands Lee Cmnty. Dev. Dist. Spl. Assmt. Series 2004-B, 5.125%, 5/1/11 6,071 750,000 Riverwood Estates Cmnty. Dev. Dist. Spl. Assessment Series 2006-B, 5.00%, 5/1/13 (3) 330,000 500,000 Sarasota Co. Hlth. Facs. Auth. Retirement Rev. Ref. Series 2007 (Village on the Isle Proj.), 5.50%, 1/1/27 297,455 250,000 Sarasota Natl. Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2007, 5.30%, 5/1/39 124,615 500,000 Seminole Tribe Spl. Oblig. Rev. Series 2007-A, 5.50%, 10/1/24 295,690 780,000 South Lake Co. Hosp. Dist. Rev. Series 2003 (South Lake Hosp. Inc. Proj.), 5.50%, 10/1/13 801,895 850,000 Sterling Hill Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series, 5.10%, 5/1/11 510,000 1,000,000 Stoneybrook South Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 5.45%, 11/1/15 622,660 750,000 Tolomato Cmnty. Dev. Dist. Spl. Assmt. Series 2007, 6.375%, 5/1/17 572,175 895,000 Verano Ctr. Cmnty. Dev. Dist. Spl. Assessment Series 2006-B (Dist. No. 1 Infrastructure Proj.). 5.00%, 11/1/12 495,535 735,000 Waters Edge Cmnty. Dev. Dist. Cap. Impt. Spl. Assessment Rev. Series 2006-B, 5.00%, 11/1/12 477,757 500,000 Waterset North Cmnty. Dev. Dist. Spl. Assmt. Rev. Series 2007-B, 6.55%, 11/1/15 301,240 50,000 West Villages Impt. Dist. Spl. Assmt. Rev. Series 2006 (Unit of Dev. No. 3), 5.50%, 5/1/37 26,650 450,000 Zephyr Ridge Cmnty. Dev. Dist. Spl. Assessment Rev. Series 2006-B, 5.25%, 5/1/13 249,017 ---------------- 13,653,250 ---------------- GEORGIA (1.2%) 1,490,000 East Point Tax Allocation Series 2002-A, 8.00%, 2/1/26 1,383,003 250,000 Gainesville Redev. Auth. Educ. Facs. Rev. Ref. Series 2007 (Riverside Military Academy Proj.), 5.125%, 3/1/27 150,312 285,000 Main St. Nat. Gas Inc. Rev. Series 2008-A (GA Gas Proj.), 5.50%, 7/15/17 36,349 250,000 Medical Ctr. Hosp. Auth. Rev. Ref. Series 2007 (Spring Harbor Green Isl. Proj.), 5.25%, 7/1/27 149,772 ---------------- 1,719,436 ---------------- IDAHO (0.4%) ID Hsg. & Fin. Assn. Nonprofit Facs. Rev. Series 2008-A: 250,000 (Idaho Arts Charter School Proj.), 5.50%, 12/1/18 196,855 250,000 (Liberty Charter School Proj.), 5.50%, 6/1/21 194,257 250,000 (Victory Charter School Proj.), 5.625%, 7/1/21 195,637 ---------------- 586,749 ---------------- ILLINOIS (9.5%) 20,000 Chicago Metro Hsg. Dev. Corp. Mtg. Rev. Ref. Series 1992-A (FHA insured) (Section 8), 6.85%, 7/1/22 20,014 500,000 Harvey Ref. & Impt. G.O. Series 2007-A, 5.50%, 12/1/27 429,935 500,000 IL DFA Rev. Ref. Series 2007 (Chicago Charter School Fdn. Proj.), 5.00%, 12/1/36 285,795 1,000,000 IL Fin. Auth. Rev. Ref. Series 2007-A (Christian Homes, Inc. Proj.), 5.25%, 5/15/12 886,230 275,000 IL DFA Pollution Control Rev. Ref. Series 2000-A (Ameren CIPS Proj.), 5.50%, 3/1/14 234,531 IL DFA Refunding & New Money Rev. (Cmty. Rehab. Providers Fac. Acquisition Program): 120,000 Series 1997-A, 6.05%, 7/1/19 108,235 150,000 Series 1998-A, 5.70%, 7/1/19 124,770 270,000 Series 2002-A (Cmnty. Rehab. Providers Fac. Proj.), 5.70%, 7/1/12 266,142 IL Fin. Auth. Rev.: 750,000 Ref. Series 2006 (Luther Hillside Village Proj.), 5.25%, 2/1/37 507,772 700,000 Series 2006-A (Three Crowns Park Plaza Proj.), 5.875%, 2/15/38 388,003 500,000 Series 2006 (Tabor Hills Supportive Living Proj.), 5.25%, 11/15/26 319,120 500,000 Series 2006-A (Montgomery Place Proj.), 5.75%, 5/15/38 274,930 350,000 Series 2007-A (Sedgebrook, Inc. Fac. Proj.), 5.40%, 11/15/16 270,060 IL Fin. Auth. Sports Fac. Rev.: Series 2007-A (United Sports Org. of Barrington Proj.) (UTD insured): 500,000 6.125%, 10/1/27 350,115 500,000 6.25%, 10/1/37 327,715 1,000,000 Series 2008 (North Shore Ice Arena Proj.), 6.25%, 12/1/38 670,100 Lombard Public Facs. Corp. Rev. First Tier: Series 2005-A1 (Conference Ctr. & Hotel Proj.): 115,000 6.375%, 1/1/15 96,663 750,000 (ACA insured) 5.50%, 1/1/25 463,537 1,925,000 Series 2005-B (Conference Ctr. & Hotel Proj.), 5.25%, 1/1/36 1,627,068 2,000,000 Malta Tax Allocation Rev. Series 2006, 5.75%, 12/30/25 1,106,600 1,000,000 Manhattan Spl. Service Area Spl. Tax No. 07-6 Series 2007 (Groebe Farm-Stonegate Proj.), 5.75%, 3/1/22 603,870
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 247,000 Montgomery Ref. Impt. Spl. Assmt. Series 2007 (Lakewood Creek Proj.) (Radian insured), 4.70%, 3/1/30 151,142 250,000 Quincy Hosp. Rev. Ref. Series 2007, 5.00%, 11/15/17 230,385 Southwestern IL Dev. Auth. Rev.: 2,475,000 Series 1999 (Anderson Hosp. Proj.), 5.625%, 8/15/29 1,677,011 750,000 Ref. Series 2008-A (Local Govt. Prog.), 7.00%, 10/1/22 558,848 500,000 Series 2006 (Village of Sauget Proj.), 5.625%, 11/1/26 344,305 215,000 Upper Illinois River Valley Dev. Auth. Rev. Series 2001 (Morris Hosp. Proj.), 6.05%, 12/1/11 214,308 440,000 Will Co. Spl. Educ. Rev. Series 2006, 5.40%, 1/1/18 437,219 500,000 Will Co. Student Hsg. Rev. Series 2002-A (Joliet Junior College Proj.), 6.375%, 9/1/13 (3) 256,160 ---------------- 13,230,583 ---------------- INDIANA (2.7%) 100,000 Elkhart Co. Ind. Hosp. Auth. Rev. Series 1998 (Elkhart General Hosp. Proj.), 5.25%, 8/15/28 74,663 IN Hlth. & Educ. Fac. Fin. Auth. Rev. Series 2005 (Baptist Homes of IN Proj.): 400,000 5.25%, 11/15/25 316,552 250,000 5.25%, 11/15/35 177,630 215,000 IN Hlth. Fac. Fin. Auth. Hlth. Fac. Rev. Series 1998 (Holy Cross Health Sys. Corp. Proj.) (MBIA insured), 5.00%, 12/1/28 187,934 IN Hlth. Fac. Fin. Auth. Hosp. Rev.: Series 1993 (Community Hosp. of Anderson Proj.) (MBIA insured): 105,000 6.00%, 1/1/14 105,035 375,000 6.00%, 1/1/23 347,227 Series 2001-A (Community Foundation Northwest IN): 1,360,000 5.50%, 8/1/13 1,301,833 360,000 6.375%, 8/1/21 315,130 50,000 6.375%, 8/1/31 39,361 300,000 Series 2004-A (Community Foundation Northwest IN), 4.75%, 3/1/14 270,246 400,000 St. Joseph Co. Hosp. Auth. Hlth. Fac. Rev. Series 2005 (Madison Ctr. Oblig. Group Proj.), 5.25%, 2/15/28 271,624 500,000 Vigo Co. Hosp. Auth. Rev. Series 2007 (Union Hosp. Inc. Proj.), 5.50%, 9/1/27 314,900 ---------------- 3,722,135 ---------------- IOWA (1.2%) Coralville Urban Renewal Rev. Tax Increment Series 2006-A: 120,000 5.00%, 6/1/14 111,625 185,000 5.00%, 6/1/15 167,813 405,000 Dickinson Co. Hsg. Sr. Rev. Series 2006-A (Spirit Lake - GEAC LLC Proj.), 5.375%, 12/1/16 320,011 345,000 Iowa Fin. Auth. Cmnty. Provider Rev. Series 2007 (Boys & Girls Proj.), 5.40%, 12/1/10 332,687 410,000 IA Fin. Auth. Sr. Hsg. Rev. Ref. Series 2007-A (Walnut Ridge Proj.), 5.00%, 12/1/14 328,061 95,000 IA Fin. Auth Single Family Rev. Series 2000-D (GNMA/FNMA Mtg. Backed Sec. Proj.), 5.75%, 7/1/09 95,902 500,000 IA Fin. Auth. Sr. Living Fac. Rev. Series 2007-A (Deerfield Ret. Cmnty. Inc. Proj.), 5.00%, 11/15/21 299,540 ---------------- 1,655,639 ---------------- LOUISIANA (5.2%) 7,200,000 Capital Appreciation Series 2000-D1 (GNMA & FNMA collateralized) zero coupon, 6.46% effective yield, 4/1/34 1,143,936 387,118 Denham Springs - Livingston Hsg. & Mtg. Rev Series 2007, 5.00%, 11/1/40 359,369 115,000 East Baton Rouge Fin. Auth. Single Family Mtg. Rev. Ref. Series 2007-B1 (GNMA/FNMA/FHLMC supported), 4.625%, 10/1/24 99,392 Jefferson Parish Fin. Auth. Single Family Mtg. Rev. Series 2007-D: 270,000 4.00%, 12/1/23 262,640 1,200,000 5.00%, 6/1/38 1,043,508 400,000 Juban Park Cmnty. Dev. Dist. Special Assessment Series 2006, 5.15%, 10/1/14 317,380 204,000 Layayette Pub. Fin. Auth. Single Family Mortgage Backed Rev. Series 2007 (GNMA/FNMA/FHLMC supported), 5.35%, 1/1/41 194,334 LA Hsg. Fin. Agy. Single Family Mtg. Rev.: 2,210,000 Series 2007-B1, 5.70%, 12/1/38 2,176,275 250,000 Series 2008-B (Home Ownership Prog.) (GNMA/FNMA/FHLMC supported), 6.00%, 12/1/28 246,840 600,000 LA Loc. Gov. Envir. Facs. Cmnty. Dev. Auth. Rev. Series 2007 (LA Local Gov. Proj.), 6.75%, 11/1/32 327,300 750,000 LA Public Facs. Auth. Rev. Ref. Series 2007-A2 (Tulane Univ. Proj.), variable rate, 2/15/36 405,000 1,025,000 St. John Baptist Parish Rev. Series 2007-A (Marathon Oil Corp.), 5.125%, 6/1/37 604,812 ---------------- 7,180,786 ---------------- MARYLAND (0.2%) 305,000 MD Economic Dev. Corp. Rev. Ref. Sr. Lien Series 2006-A (Chesapeake Bay Proj.), 4.75%, 12/1/11 267,671 ---------------- 267,671 ---------------- MASSACHUSETTS (1.0%) 250,000 MA St. G.O. Series 2007-A (FGIC insured), variable rate, 5/1/37 125,000 MA Hlth. & Educ. Fac. Auth. Rev.: 250,000 Series 2001-E (Berkshire Hlth. Sys. Proj.), 5.70%, 101/25 187,382
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 1,000,000 Series 2008-A (Quincy Med. Ctr. Proj.), 5.125%, 1/15/12 923,690 200,000 MA Indus. Fin. Agy. Rev. Series 1997 (Trustees Deerfield Academy Proj.), 5.00%, 10/1/23 200,844 ---------------- 1,436,916 ---------------- MICHIGAN (2.3%) 1,000,000 Kent Hosp. Fin. Auth. Rev. Series 2005-A (Met Hosp. Proj.), 6.00%, 7/1/35 661,700 115,000 MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2006 (Black River School Proj.), 5.125%, 9/1/11 109,225 500,000 MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Series 2007 (Richfield Pub. Sch. Proj.), 5.00%, 9/1/22 350,265 650,000 MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Bradford Proj.), 6.00%, 9/1/16 576,816 500,000 MI Pub. Educ. Facs. Auth Ltd. Obligation Rev. Ref. Series 2007 (Nataki Talibah Proj.), 6.25%, 10/1/23 373,970 500,000 MI Hosp. Fin. Auth. Rev. Ref. Series 1998-A (Mclaren Hlth. Care Proj.) (MBIA-IBC insured), 5.00%, 6/1/28 361,105 250,000 MI Tobacco Settlement Fin. Auth. Sr. Rev. Series 2007-A, 5.125%, 6/1/22 175,380 300,000 Pontiac Tax Increment Fin. Auth. Rev. Ref. Series 2002 (Dev. Area 2 Proj.) (ACA insured), 5.625%, 6/1/22 186,399 500,000 Saginaw Hosp Fin. Auth. Series 2000-F (Covenant Med. Ctr. Proj.), 6.50%, 7/1/30 446,050 ---------------- 3,240,910 ---------------- MINNESOTA (1.5%) 2,147,493 Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 5.295%, 11/1/32 1,698,044 594,659 St. Paul Hsg. & Redev. Auth. Rev. Series 2006 (Nursing Home NTS-Episcopal Proj.), 5.63%, 10/1/33 342,179 ---------------- 2,040,223 ---------------- MISSISSIPPI (0.7%) MS Home Corp. Single Fam. Mtg. Rev. (GNMA/FNMA/FHLMC supported): 245,000 Series 2007-C1, 5.60%, 6/1/38 243,880 250,000 Series 2008-A1, 5.05%, 12/1/39 205,925 495,000 Series 2008-B2, 6.75%, 6/1/39 519,537 ---------------- 969,342 ---------------- MISSOURI (3.1%) 200,000 Branson Cmnty. Park Impt. Dist. Spl. Assessment Rev. Series 2007-A, 5.00%, 6/1/10 196,174 80,000 Cape Girardeau Co. Indl. Dev. Auth. Hlth. Care Fac. Rev. (Southwest MO Hosp. Assoc. Proj.) Series 2002, 5.75%, 6/1/32 60,466 500,000 Chillicothe Tax Increment Rev Series 2006 (South U.S. 65 Proj.), 5.625%, 4/1/27 342,595 265,000 Hannibal Indl. Dev. Auth. Tax Increment & Transn. Dev. Rev. Ref. & Impt. Series 2006 (Stardust-Munger Proj.), 4.70%, 4/15/23 233,696 250,000 Independence 39th St. Transn. Dist. Rev. Ref. & Impt. Series 2008 (Road Impt. Proj.), 6.875%, 9/1/32 184,467 1,000,000 Joplin Indl. Dev. Auth. Rev. Ref. Series 2007-F (Christian Homes Inc. Proj.), 5.50%, 5/15/17 750,960 Series 2007-E (Independence - Centerpoint Proj.): 250,000 5.125%, 4/1/25 220,830 500,000 4.75%, 4/1/28 405,575 750,000 Lakeside 370 Levee Dist. Impt. Spl. Tax Series 2008, 7.00%, 4/1/28 575,325 500,000 MO Hlth. & Educ. Fac. Auth. Rev. Series 2005-A (Sr. Living Fac.-Lutheran Sr. Svcs. Proj.), 5.375%, 2/1/35 353,780 400,000 MO Hlth. & Educ. Fac. Auth. Educ. Fac. Rev. Series 2007-B (Riverside Horizons Proj.) (ACA insured), 4.50%, 5/1/27 322,888 250,000 St. Louis Indl. Dev. Auth. Sr. Living Facs. Rev. Series 2007-A (Friendship Vlg.), 5.375%, 9/1/21 198,143 445,000 St. Louis Indl. Dev. Auth. Tax Allocation Rev. Series 2006 (Southtown Redev. Proj.), 5.125%, 5/1/26 269,238 250,000 Univ. City Indl. Dev. Auth. Hsg. Rev. Ref. Series 1995-A (Canterbury Proj., 5.75%, 12/20/15 250,223 ---------------- 4,364,360 ---------------- MONTANA (0.2%) 880,939 MT Fac. Fin. Auth. Rev. Series 2005 (Great Falls Pre-Release Svcs. Proj.), 5.08%, 4/1/21 817,027 ---------------- NEBRASKA (0.3%) 500,000 Mead Vlg. Tax Allocation Rev. Series 2006-A (E3 Biofuels - Mead LLC Proj.), 5.125%, 7/1/12 336,820 ---------------- 336,820 ---------------- NEVADA (2.6%) 250,000 Clark Co. Econ. Dev. Rev. Series 2003 (Alexander Dawson Sch. Proj.), 5.375%, 5/15/33 213,647 1,000,000 Clark Co. Poll. Ctrl. Rev. Ref. Series 1995-D (Nev. Pwr. Co. Proj.) (ACA-CBI Insured), 5.30%, 10/1/11 897,920 415,000 Clark Co. Impt. Spl. Assmt. Series 2007-A (Summerlin Proj.), 4.85%, 2/1/17 257,055 600,000 Las Vegas Paiute Tribe Rev. Series 2002A (ACA insured), 6.625%, 11/1/17 536,136 300,000 North Las Vegas LOC Impt. Spl. Assessment Ref. Sub. Spl. Series 2006-B (Impt. Dist. No. 60), 4.50%, 12/1/10 287,571 90,000 NV Hsg. Dev. SF Mtg. Program Mezzanine Series 1998B-1, 5.30%, 4/1/16 90,632 Reno Hosp. Rev. Series 2007-A (Renown Regl. Med. Ctr. Proj.): 500,000 5.00%, 6/1/22 399,705 500,000 5.25%, 6/1/32 355,065 500,000 Sparks Redev. Agy. Tax Increment Rev. Series 2008 (Redev. Area No. 2 Proj.), 6.40%, 6/1/20 379,250 250,000 Sparks Tourism Impt. Dist. No. 1 Sr. Sales Tax Series 2008-A, 6.50%, 6/15/20 191,378 ---------------- 3,608,359 ----------------
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- NEW HAMPSHIRE (1.3%) Manchester Hsg. & Redev. Auth. Rev.: 200,000 Series 2000-B (Radian insured) zero coupon, 5.25% effective yield, 1/1/19 101,982 890,000 Series 2000-A (ACA insured), 6.75%, 1/1/15 877,967 565,000 NH Hlth. & Educ. Fac. Auth. Rev. Series 2006-A (Havenwood-Heritage Heights Proj.), 5.00%, 1/1/16 442,022 500,000 NH Hlth. & Educ. Facs. Auth. Hosp. Rev. Series 2004 (Speare Mem. Hosp. Proj.), 5.00%, 7/1/16 422,635 ---------------- 1,844,606 ---------------- NEW JERSEY (0.4%) NJ Hlth. Care Facs. Fin. Auth. Rev.: 300,000 Series 1997 (Capital Health Sys. Proj.), 5.125%, 7/1/12 293,022 495,000 Series 2007-E (Catholic Hlth. East Issue Proj.), variable rate, 11/15/33 301,950 ---------------- 594,972 ---------------- NEW MEXICO (1.3%) Farmington Pollution Ctl. Rev. Ref. (Pub. Svc. Co. San Juan Proj.): 250,000 Series 1996-B, 6.30%, 12/1/16 214,935 1,000,000 Series 1996-C, 5.70%, 12/1/16 865,600 475,000 NM MFA Forward Mortgage-Backed Series 1995-E (GNMA collateralized), 6.95%, 1/1/26 484,424 250,000 NM State Hosp. Equip. Ln. Council Hosp. Rev. Ref. Series 2007-A (Rehoboth Proj.), 5.00%, 8/15/17 181,775 ---------------- 1,746,734 ---------------- NEW YORK (1.9%) 250,000 Albany Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A (Brighter Choice Charter Sch. Proj.), 5.00%, 4/1/20 186,342 500,000 Genesee Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (United Mem. Med. Ctr. Proj.), 4.75%, 12/1/14 423,285 275,000 Madison Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007 (Oneida Hlth. Sys., Inc. Proj.), 4.50%, 2/1/17 228,291 230,000 NY Dorm Auth. Rev. Series 1996-A (Maimonides Med. Ctr. Proj.), 5.75%, 8/1/24 230,021 650,000 NY Dorm Auth. Debt Rev. Series 2007-B (N Shore Proj.), variable rate, 5/1/33 286,000 155,000 NY Cos. Tobacco Trust IV Settlement Pass-Thru Rev. Series 2005-A, 4.25%, 6/1/21 134,822 250,000 Seneca Nation Indians Cap. Impt. Auth. Spl. Oblig. Rev. Series 2007-A, 5.00%, 12/1/23 140,978 Ulster Co. Indl. Dev. Agy. Civic Fac. Rev. Series 2007-A: 500,000 5.10%, 9/15/13 433,680 650,000 5.25%, 9/15/16 504,179 ---------------- 2,567,598 ---------------- NORTH CAROLINA (1.4%) 750,000 Buncome Co. Proj. Dev. Fin. Rev. Series 2008 (Woodfin Downtown Corridor Dev. Proj.), 6.75%, 8/1/24 582,165 250,000 NC Med. Care Commission Retirement Facs. Rev. Ref. Series 2007 (Brookwood Proj.), 5.25%, 1/1/32 133,280 525,000 NC Med. Commission Hlth. Care Facs. Rev. Ref. Series 2005-B (Presbyterian Proj.), 4.90%, 7/1/31 520,076 600,000 NC Med. Care Commission Hlth. Care Hsg. Rev. Series 2004-A (ARC Proj.), 5.80%, 10/1/34 401,742 370,000 NC Med. Care Commission Rev. Series 2003 (FHA Insd. Mtg.-Betsy Johnson Proj.) (FSA insured), 5.375%, 10/1/24 336,844 ---------------- 1,974,107 ---------------- NORTH DAKOTA (0.6%) 741,792 City of Washburn Series 2007-B (Bismarck State College Fdtn.), 5.01%, 4/1/32 710,793 175,000 Williams Co. Sales Tax Rev. Series 2006, 5.00%, 11/1/31 111,447 ---------------- 822,240 ---------------- NORTHERN MARIANA ISLANDS (0.2%) 450,000 Northern Mariana Islands Commonwealth G.O. Ref. Series 2007-B, 5.00%, 10/1/22 296,424 ---------------- OHIO (2.4%) 330,000 Blue Ash Tax Allocation Rev. Series 2006 (Duke Realty Ohio Proj.), 5.00%, 12/1/21 283,427 480,000 Buckeye Tobacco Settlement Fin. Auth. Asset-Backed Sr. Rev. Series 2007-A2, 5.125%, 6/1/24 319,008 295,000 Cleveland-Cuyahoga Port. Auth. Dev. Rev. Series 1999-A (Port of Cleveland Bond Fund Capital Imprv. Proj.), 5.375%, 5/15/19 234,436 Cleveland-Cuyahoga Co. Port. Auth. Dev. Rev.: 260,000 Series 2005-B (Fairmount Proj.), 5.125%, 5/15/25 173,766 750,000 Series 2006-A (Sr. Hsg. - St. Clarence - Geac Proj.), 6.00%, 5/1/21 508,747 750,000 Cuyahoga Co. Hsg. Mtg. Sr. Rev. Series 2007 (R H Myers Apts. Proj.), 5.70%, 3/20/42 680,857 250,000 Erie Co. Hosp. Facs. Rev. Series 2002-A (Firelands Regl. Med. Ctr. Proj.), 5.625%, 8/15/32 193,022 500,000 OH Higher Educ. Fac. Commn. Rev. Series 2008-C (Xavier Univ. Proj.), 5.75%, 5/1/28 472,120 250,000 OH Hsg. Fin. Agy. Residential Mtg. Rev. Series 2008-F, 5.45%, 9/1/33 224,125 250,000 Toldeo-Lucas Co. Port Auth. Spl. Assessment Rev. Series 2003 (Crocker Park), 5.38%, 12/1/35 169,780 ---------------- 3,259,288 ---------------- OKLAHOMA (1.1%) 500,000 Atoka Co. Health Care Auth. Hosp. Rev. Series 2007 (Atoka Mem. Hosp. Proj.), 5.875%, 10/1/18 359,000 500,000 Citizen Potawatomi Nation Tax Rev. Series 2004-A, 6.50%, 9/1/16 456,755 350,000 Valley View Hosp. Auth. Rev. Ref. Series 1996, 6.00%, 8/15/14 334,271 500,000 Weatherford Hosp. Auth. Rev. Series 2006, 6.00%, 5/1/16 407,145
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 1,557,171 ---------------- OREGON (0.8%) 250,000 OR G.O. Series 2001-81 (Veterans Welfare Proj.), 5.25%, 10/1/42 217,493 50,000 OR Hsg. & Cmty. Svcs. Dept. Mtg. Rev. Series 2000-K, 5.70%, 7/1/22 50,409 1,245,000 Western Generation Agy. Sub. Lien Rev. Series 2006-C (Wauna Cogeneration Proj.), 5.00%, 1/1/21 828,859 ---------------- 1,096,761 ---------------- PENNSYLVANIA (2.7%) 495,000 Butler Co. Gen. Auth. Rev. Series 2007 (Butler Area Sch. Dist. Proj.), variable rate, 10/1/34 257,400 225,000 Cambridge Area Jt. Auth. Gtd. Swr. Rev. Series 2008, 5.625%, 12/1/28 189,657 555,000 Erie Auth. Pkg. Fac. Rev. Series 2006, 4.60%, 9/1/21 425,557 600,000 Geisinger Auth. Hlth. Sys. Rev. Series 2007 (Geisinger Hlth. Sys. Proj.), variable rate, 5/1/37 216,000 1,890,000 Grove City Area Hosp. Auth. Rev. Series 1998 (United Cmnty. Hosp. Proj.), 5.25%, 7/1/12 1,800,093 250,000 Lehigh Co. General Purpose Auth. Rev. Rev. Series 2007 (Saint Luke's Bethlehem Proj.), variable rate, 8/15/42 77,500 565,000 Potter Co. Hosp. Auth. Rev. Series 1996 (Charles Cole Mem. Hosp. Proj.) (Radian insured), 5.95%, 8/1/16 540,733 25,000 South Fork Municipal Auth. Hosp. Rev. Series 1998-B (Conemaugh Valley Mem. Hosp. Proj.), 5.375%, 7/1/22 21,256 200,000 Washington Co. Auth. Rev. Series 1999, 6.15%, 12/1/29 158,458 ---------------- 3,686,654 ---------------- PUERTO RICO (0.5%) 500,000 Puerto RicoElec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 235,000 500,000 Puerto Rico Commonwealth Hwy. & Transportation Auth. Rev. Ref. Series 2007-N, variable rate, 7/1/45 180,000 500,000 Puerto Rico Sales Tax. Fin. Corp. Rev. Series 2007-A, variable rate, 8/1/57 252,500 ---------------- 667,500 ---------------- RHODE ISLAND (0.6%) 565,000 RI Hlth. & Educ. Bldg. Corp. Rev. Series 1997 (Steere House Proj.), 5.80%, 7/1/20 415,213 500,000 RI Hsg. & Mtg. Fin. Corp. Rev. Series 2008-A2 (Home Ownership Oppty. Proj.), 5.625%, 10/1/38 451,745 ---------------- 866,958 ---------------- SOUTH CAROLINA (1.0%) 750,000 Berkeley Co. Sch. Dist. Intallment Lease (Securing Assets For Education Proj.) Series 2003, 5.25%, 12/1/20 760,140 SC Jobs Econ. Dev. Auth. Hlth. Care Fac. Rev. (Woodlands at Furman Proj.): 500,000 Series 2007-A, 6.00%, 11/15/27 327,660 250,000 Series 2007-B, 5.15%, 11/15/42 221,243 ---------------- 1,309,043 ---------------- TENNESSEE (2.1%) 500,000 Blount Co. Hlth. & Educ. Fac. Brd. Rev. Ref. Series 2007-A (Asbury Inc. Proj.), 4.75%, 4/1/12 459,245 495,000 Metro Govt. Nashville & Davidson Co. Hlth. & Educ. Facs. Brd. Multifamily Hsg. Rev. Series 2005-A (Prestige Proj.), 7.50%, 12/20/40 350,292 240,000 Metro Govt. Nashville & Davidson Co. Indus. Dev. Brd. Rev. Ref. Series 2001-A (GNMA collateralized), 6.625%, 3/20/36 245,532 Shelby Co. Hlth., Educ. & Hsg. Fac. Board Multifamily Hsg. Rev.: (CME Memphis Apts. Proj.): 1,850,000 Senior Series 1998-A, 5.35%, 1/1/19 (3) 278,518 7,875,000 Senior Series 1998-A, 5.55%, 1/1/29 (3) 1,179,596 1,630,000 Subordinate Series 1998-C, 6.00%, 1/1/29 (3) 16 (Eastwood Park Apts. Proj.): 1,000,000 Senior Series 1995-A2, 6.40%, 9/1/25 (3) 340,930 405,000 Subordinate Series 1995-C, 7.50%, 9/1/25 (3) 4 ---------------- 2,854,133 ---------------- TEXAS (8.2%) 450,000 Austin Convention Enterprises, Inc. (Convention Ctr.) Rev. Ref. Series 2006, 5.25%, 1/1/24 320,409 20,000 Austin Utilities System Rev. Ref. Series 1993 (MBIA insured), 5.25%, 5/15/18 20,033 Bexar Co. HFC Multifamily Hsg. Rev.: 250,000 Series 2000-A (Dymaxion & Marbach Pk. Apts. Proj.), 6.10%, 8/1/30 172,915 550,000 Subordinated Series 2000-C (Honey Creek Apts. Proj.), 8.00%, 4/1/30 363,858 230,000 Ref. Series 2001-A (Nob Hill Apartments Proj.), 5.50%, 6/1/11 213,401 115,000 Subordinated Series 2001-B (American Oppty. Hsg. Dublin Kingswood & Waterford Apts. Proj.), 7.50%, 12/1/14 101,302 440,000 Series 2001-A-1 (American Opportunity -Waterford Proj.), 6.50%, 12/1/21 326,788 500,000 Brazos River Hbr. Nav. Dist Rev. Series 2002-B-2 (Dow Chemical Co. Proj.), 4.75%, 5/15/33 297,990 1,969,000 Dallas HFC Multifamily Mtg. Rev. Series 1998-A (GNMA collateralized) (Towne Ctr. Apts.), 6.75%, 10/20/32 1,993,573 1,165,820 Galveston Co. Municipal Util. Dist. No. 52 Series 2008-A, 6.25%, 8/12/09 1,153,089 100,000 Harris Co. Spl. Rev. Sr. Lien Series 1998-A (Houston Sports Auth. Proj.), 5.00%, 11/15/28 83,486 500,000 Harris Co. Hlth. Fac. Dev. Corp. Hosp. Rev. Series 2008 (Teco Proj.) (Assured Gty.), 5.00%, 11/15/32 459,495 500,000 La Vernia Higher Educ. Fin. Corp. Rev. Series 2008 (Friends Life Proj.), 6.00%, 2/15/18 414,715 16,775 Midland HFC Single Family Mtg. Rev. Ref. Series 1992 A-2, 8.45%, 12/1/11 16,831 250,000 North TX Twy. Auth. Toll Rev. Ref. Series 2008-F, 6.125%, 1/1/31 222,560
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 750,000 Port Corpus Christi Auth. Gen. Rev. Ref. Series 1989 (Union Pacific-Conv.), 5.65%, 12/1/22 520,365 Richardson Hosp. Auth. Rev. Ref. Series 1998 (Baylor/Richardson Proj.): 610,000 5.50%, 12/1/18 508,740 1,175,000 5.625%, 12/1/28 802,443 Tarrant Co. Cultural Educ. Facs. Fin. Corp. Retirement Fac. Rev. Series 2007: 300,000 (C.C. Young Mem. Hom. Proj.), 5.00%, 2/15/13 271,035 250,000 (Buckingham Sr. Living Cmnty. Inc. Proj.), 5.25%, 11/15/16 193,683 490,000 Tarrant Co. HFC Multifamily Hsg. Rev. Subordinate Seroes 2001-C (Crossroads Apt. Proj.), 7.25%, 12/1/36 (3) 4,900 TX Municipal Gas Acq. & Supply Corp. I Gas Supply Sr. Lien Rev.: 500,000 Series 2006-C, variable rate, 12/15/26 295,000 35,000 Series 2008-D, 6.25%, 12/15/26 28,002 300,000 TX Municipal Gas Acq. & Supply Corp. II Gas Supply Rev. Series 2007, variable rate, 9/15/27 160,500 235,000 TX Public Property Fin. Corp. Mental Hlth. & Mental Retardation Rev. Series 1996, 6.20%, 9/1/16 213,991 500,000 TX St. Pub. Fin. Auth. Charter Sch. Fin. Corp. Rev. Series 2007-A (Idea Pub. Sch. Proj.) (ACA insured), 5.00%, 8/15/30 265,910 TX Pub. Fin. Auth. Charter Sch. Fin. Corp. Rev.: 1,000,000 Series 2006-A (Kipp Inc. Proj.) (ACA Insured), 5.00%, 2/15/28 547,470 750,000 Series 2006-A (Ed-Burnham Wood Proj.), 5.50%, 9/1/18 599,055 835,000 Travis Co. Hlth. Facs. Dev. Corp. Retirement Fac. Rev. Series 2005 (Querencia Barton Creek Proj.), 4.90%, 11/15/13 738,123 ---------------- 11,309,662 ---------------- UTAH (0.7%) 250,000 Provo Charter Sch. Rev. Series 2007 (Freedom Academy Fdtn. Proj.), 5.50%, 6/15/37 147,963 857,000 UT Assoc. Muni. Pwr. Sys. Rev Series 2007-A, 5.00%, 5/1/27 567,000 240,000 UT Hsg. Finance Agy. Multifamily Rev. Ref. Series 1996-A (Section 8) (FHA insured), 6.10%, 7/1/22 240,029 ---------------- 954,992 ---------------- VIRGINIA (1.4%) 1,000,000 Farms New Kent Cmnty. Dev. Auth. Spl. Assmt. Series 2006-A, 5.125%, 3/1/36 511,020 1,500,000 Virginia St. Hsg. Dev. Auth. Comwlth. Mtg. Rev. Series 2001-H1 (MBIA insured), 5.38%, 7/1/36 1,361,415 ---------------- 1,872,435 ---------------- WASHINGTON (1.6%) 1,000,000 Kalispel Tribe Indians Priority Dist. Rev. Series 2008, 6.20%, 1/1/16 855,450 250,000 Okanogan Co. Pub. Hosp. Dist. No. 4 G.O. Series 2007 (Radian insured), 5.625%, 12/1/23 239,453 1,250,000 WA State Hsg. Fin. Commn. Nonprofit Rev. Series 2007-B (Skyline At First Hill Proj.), 5.10%, 1/1/13 1,122,763 ---------------- 2,217,666 ---------------- WEST VIRGINIA (0.9%) 1,250,000 Pleasants Co. Pollution Ctrl. Rev. Series 1995-C (Monongahela Pwr. Co.), 6.15%, 5/1/15 1,250,338 ---------------- WISCONSIN (3.8%) WI Hlth. & Educ. Fac. Auth. Rev.: 250,000 Series 1993-C (Sorrowful Mother Corp. Proj.), 5.50%, 8/15/23 213,140 220,000 Series 1998 (Lawrence Univ. Proj.), 5.125%, 4/15/28 148,595 2,450,000 Series 1999-A (Aurora Hlth. Care Proj), 5.60%, 2/15/29 1,661,272 225,000 Series 1999-B (Aurora Hlth. Care Proj), 5.50%, 2/15/15 202,165 500,000 Series 1999-B (Aurora Hlth. Care Proj)(ACA insured), 5.625%, 2/15/29 349,280 900,000 Series 1999 (Divine Savior, Inc. Proj.)(ACA insured), 5.70%, 6/1/28 660,042 Series 2001 (Agnesian Healthcare, Inc. Proj.): 550,000 6.00%, 7/1/17 551,386 340,000 6.00%, 7/1/21 322,266 Series 2003 (Synergy Hlth., Inc. Proj.): 215,000 6.00%, 11/15/23 202,487 250,000 6.00%, 11/15/32 216,770 450,000 Series 2004 (Blood Ctr. Southeastern Proj.), 5.50%, 6/1/24 377,951 500,000 Series 2004-A (Beaver Dam Cmnty. Hosp., Inc.), 6.75%, 8/15/34 315,700 ---------------- 5,221,054 ---------------- Total municipal bonds (cost: $177,122,080) 125,973,442 ---------------- CLOSED-END MUTUAL FUNDS (6.0%) (2) 31,000 BlackRock Long-Term Municipal Advantage Trust (BTA) 210,800 66,500 BlackRock MuniYield Insured Fund (MYI) 602,490 33,800 BlackRock MuniHoldings Florida Insured Fund (MFL) 309,270 54,500 BlackRock MuniYield Florida Fund (MYF) 487,775
================================================================================================================================== TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- Quantity/Par ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 23,700 BlackRock MuniYield Michigan Insured Fund (MIY) 225,387 23,000 BlackRock MuniYield Michigan Insured Fund II (MYM) 200,560 208,600 DWS Municipal Income Trust (KTF) 1,710,520 23,000 Eaton Vance National Municipal Income Trust (FEV) 171,350 44,000 Insured Municipal Income Fund (PIF) 444,400 58,300 Investment Grade Municipal Income Fund (PPM) 581,251 62,600 MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund (MZF) 532,100 3,500 Morgan Stanley Quality Investment (IQT) 32,340 76,000 Nuveen Florida Investment Quality Municipal Fund (NQF) 693,120 7,300 Nuveen Florida Quality Income Municipal Fund (NUF) 70,007 11,700 Nuveen Michigan Premium Income Municipal Fund (NMP) 112,086 21,500 Nuveen Premier Municipal Income Fund (NPF) 212,205 67,411 Putnam Municipal Opportunities Trust (PMO) 588,498 45,700 Seligman Select Municipal Fund (SEL) 418,155 36,800 Van Kampen Advantage Municipal Income Trust II (VKI) 274,896 25,700 Van Kampen Pennsylvania Value Municipal Income Trust (VPV) 216,137 25,889 Van Kampen Trust Investment Grade Muni Fund (VGM) 228,862 ---------------- Total closed-end mutual funds (cost: $11,693,188) 8,322,209 ---------------- SHORT-TERM SECURITIES (1.0%) (2) 1,338,171 Dreyfus Tax-Exempt Cash Management Fund, 1.44% 1,338,171 ---------------- Total short-term securities (cost: $1,338,171) 1,338,171 ---------------- Total investments in securities (cost: $190,153,439) $ 135,633,822 ================ Other Assets and Liabilities, Net (+2.31%) 3,200,357 ---------------- Total Net Assets $ 138,834,179 ================ ---------------- Aggregate Cost 190,153,439 ---------------- Gross Unrealized Appreciation 60,205 Gross Unrealized Depreciation (54,579,821) ---------------- Net Unrealized Appreciation(Depreciation) (54,519,617) ================
Notes To Schedule of Investments: (1) Securities Valuation: The Fund adopted Financial Accounting Standards Board ("FASB") Statement of Accounting Standards No. 157 ("FAS 157"). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below. LEVEL 1 - quoted prices in active markets for identical investments LEVEL 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) LEVEL 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund's Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value. The following is a summary of the inputs used in valuing the Fund's assets carried at fair value: INVESTMENTS IN SECURITIES VALUATION INPUTS AT VALUE ------------------------- Level 1 - Quoted Prices $ 9,660,380 Level 2 - Other Significant Observable Inputs $125,973,442 Level 3 - Significant Unobservable Inputs -- - ------------------------------------------------------------------------------ Total $135,633,822 ============================================================================== (2) Percentage figures indicate percentage of total net assets. (3) Presently non-income producing securities.
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS (97.9%) (2) EDUCATION/STUDENT LOAN (10.9%) Intermediate Sch. Dist. 287 Lease Rev. Series 2006: 4,228,090 5.46%, 1/1/28 3,394,691 5,207,670 5.30%, 11/1/32 4,117,757 Minneapolis Educ. Fac. Lease Rev. Series 2006-A (Seed/Harvest Prep. Proj.) (LOC-U.S. Bank): 775,000 5.125%, 1/1/16 639,646 875,000 6.25%, 1/1/21 677,591 Minnesota Higher Educ. Fac. Auth. Rev.: 326,963 Lease Rev. Series 1999-5A (Concordia University), 5.25%, 4/25/14 303,393 700,000 Series 1999-4Y (Augsburg College), 5.05%, 10/1/13 666,638 150,000 Series 1999-4Y (Augsburg College), 5.20%, 10/1/16 134,565 75,000 Series 1999-4Y (Augsburg College), 5.30%, 10/1/27 53,119 700,000 Series 2005-6C (Augsburg College), 5.00%, 5/1/23 532,063 505,000 Series 2006-6J1 (Augsburg College) 5.00%, 5/1/10 514,105 100,000 Series 1999-4Z (Northwestern Hlth. Services University), 4.875%, 10/1/09 99,923 50,000 Series 2000-5E (St. Mary's Univ.), 6.75%, 3/1/22 44,812 100,000 Series 2000-5E (St. Mary's Univ.), 6.75%, 3/1/26 86,178 500,000 Series 2006-6I (Univ. St. Thomas), 5.00%, 4/1/23 482,325 1,250,000 Series 2008-6W (Univ. St. Thomas), 6.00%, 10/1/25 1,224,038 2,722,772 Series 2006-6M (College of St. Benedict), 4.493%, 10/1/16 2,772,435 1,967,011 Series 2007-6N (College St. Catherine), 4.75%, 4/26/27 1,650,460 910,000 Series 2007-6R (Bethel University), 5.50%, 5/1/14 863,954 1,900,000 Series 2007-6S (St. Scholastica College), 5.00%, 12/1/27 1,310,791 Pine City Lease Rev. Series 2006-A (Lakes Intl. Language Academy Proj.): 315,000 5.75%, 5/1/16 271,332 300,000 6.00%, 5/1/26 208,827 505,000 Ramsey Lease Rev. Series 2004-A (Pact Charter School Proj.), 5.65%, 12/1/13 464,640 775,000 Olmsted Co. Hsg. & Redev. Auth. Series 2007 (Schaeffer Academy Proj.), 4.977%, 4/25/27 469,092 St. Paul Hsg. & Redev. Auth. Lease Rev.: 375,000 Series 2002-A (New Spirit Charter School Proj.), 6.50%, 12/1/12 360,364 605,000 Series 2006-A (Hmong Academy Proj.), 5.50%, 9/1/18 485,283 Series 2006-A (Cmnty. Peace Academy Proj.): 685,000 4.35%, 12/1/12 623,268 600,000 4.35%, 12/1/14 512,520 1,500,000 5.00%, 12/1/18 1,190,625 500,000 St. Paul Hsg. & Redev. Auth. Rev. Ref. Series 2007 (St. Paul Acad. & Summit Proj.), 5.00%, 10/1/24 448,525 100,000 Victoria Private School Fac. Rev. Series 1999-A (Holy Family Catholic H.S. Proj.), 5.20%, 9/1/11 95,117 ---------------- 24,698,077 ---------------- ESCROWED TO MATURITY/PREREFUNDED (0.3%) 55,000 Guam Economic Dev. Auth. Tobacco Settlement Asset-Backed Series 2001-A, 5.00%, 5/15/22 59,083 50,000 Northfield Hospital Rev. Series 2001-C, 6.00%, 11/1/21 55,442 510,000 St. Paul Hsg. & Redev. Auth. Lease Rev. Series 2001-A (Cmnty. of Peace Academy), 6.375%, 12/1/11 549,117 ---------------- 663,642 ---------------- GENERAL OBLIGATION (1.4%) 120,000 Austin Impt. G.O. Series 1998-B, 4.70%, 2/1/13 120,265 75,000 Cold Spring G.O. Series 2000, 5.15%, 2/1/09 75,182 650,000 Dakota Co. Cmnty. Dev. Agy. Sr. Hsg. Facs. G.O. Series 2007-A, 5.00%, 1/1/26 605,566 Metropolitan Council Minneapolis-St. Paul Met. Area Tran. G.O. Series 2008-B: 1,000,000 4.375%, 3/1/24 974,820 300,000 4.50%, 3/1/26 290,424 605,000 Minneapolis Ref. G.O. Series 1996 (Sports Arena Proj.), 5.125%, 10/1/20 605,514 500,000 Northern Mariana Islands Commonwealth Ref. G.O. Series 2007-B, 5.00%, 10/1/22 329,360
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 150,000 Sauk Rapids Tax Increment G.O. Series 1997-B, 5.25%, 8/1/12 150,396 100,000 St. Paul Street Impt. Special Assessment G.O. Series 2000-B, 5.30%, 3/1/12 100,285 30,000 Winona Water & Sewer G.O. Series 1998-C, 4.90%, 2/1/13 30,073 ---------------- 3,281,885 ---------------- HOSPITAL/HEALTH CARE (25.4%) Aitkin Hlth. Care Fac. Rev. Refunding Series (Riverwood Hlth. Care Ctr. Proj.): 615,000 5.00%, 2/1/12 569,195 250,000 5.25%, 2/1/14 217,795 285,000 Bemidji Hlth. Care Facs. Rev. Ref. Series 2006 (North County Health Svcs. Proj.), 5.00%, 9/1/21 248,232 4,025,000 Breckenridge Rev. Series 2004-A (Catholic Hlth. Initiatives Proj.), 5.00%, 5/1/30 3,508,955 Carlton Hlth. Care & Hsg. Fac. Rev. Ref. Series 2006 (Faith Care Ctr. Proj.): 100,000 5.00%, 4/1/13 90,089 400,000 5.20%, 4/1/16 308,208 2,000,000 Chippewa Co. Gross Rev. Series 2007 (Montevideo Hosp. Proj.), 4.625%, 3/1/14 1,710,680 365,000 Cold Spring Hlth. Care Facs. Rev. Series 2008 (Assumption Home, Inc. Proj.), 7.25%, 3/1/23 309,202 Cold Spring Nursing Home & Sr. Hsg. Rev. Series 2005 (Assumption Home, Inc. Proj.): 135,000 4.70%, 3/1/14 116,030 145,000 4.80%, 3/1/15 118,477 150,000 4.90%, 3/1/16 116,100 Crookston Hlth. Care Fac. Rev. Ref. Series 2007 (Riverview Hlth. Proj.): 285,000 4.75%, 5/1/10 276,769 600,000 4.85%, 5/1/12 548,868 75,000 Crookston Nursing Home & Multifamily Hsg. Rev Series 2002-A (Villa St. Vincent Proj.), 5.50%, 9/1/11 70,448 Cuyuna Range Hosp. Dist. Hlth. Fac. Gross Rev.: Series 2005: 265,000 4.50%, 6/1/13 230,947 400,000 5.20%, 6/1/25 259,388 430,000 Ref. Series 2007, 4.75%, 6/1/18 315,547 1,500,000 Detroit Lakes Hsg. Rev. Ref. Series 2004-E (Mankato Lutheran Proj.), 4.25%, 8/1/34 1,447,350 435,000 Detroit Lakes Hsg. & Hlth. Facs. Rev. Ref. Series 2004-A (CDL Homes Proj.), 4.00%, 8/1/34 413,341 Douglas Co. Gross Hlth. Care Facs. Rev. Series 2008-A (Douglas Co. Hosp. Proj.): 1,000,000 5.00%, 7/1/18 875,530 1,500,000 6.00%, 7/1/28 1,226,535 250,000 Duluth Econ. Dev. Auth. Hlth. Care Fac. Rev. Series 2002 (St. Luke's Hosp. Proj.), 6.00%, 6/15/12 235,650 784,049 Duluth Sr. Hsg. Loan Participation (Lakeshore Proj.) Series 2004, 4.00%, 8/20/36 743,451 959,518 Duluth Hsg. & Redev. Auth. Sr. Hsg. Fac. Loan Participation (Lakeshore Proj.) Series 2005, 5.20%, 12/20/35 931,366 Elk River Rev. Series 1998 (Care Choice Member Proj.): 725,000 5.60%, 8/1/13 649,672 115,000 5.75%, 8/1/23 77,527 1,925,000 Glencoe Hlth. Care Fac. Rev. Series 2005 (Glencoe Regional Hlth. Svcs. Proj.), 5.00%, 4/1/25 1,363,535 Hastings Hlth. Care Fac. Rev. Series 1998 (Augustana Home of Hastings Proj.): 115,000 5.10%, 11/1/09 113,311 120,000 5.20%, 11/1/10 114,061 135,000 5.40%, 11/1/12 121,337 140,000 5.50%, 11/1/13 122,056 Hastings Hlth. Care Fac. Rev. Series 1998 (Regina Med. Ctr.)(ACA insured): 970,000 5.25%, 9/15/18 800,774 705,000 5.30%, 9/15/28 470,524 Inver Grove Heights Nursing Home Rev. Refunding Series 2006 (Presbyterian Homes Care Proj.): 250,000 5.00%, 10/1/11 237,122 290,000 5.00%, 10/1/12 266,113 Maple Grove Hlth. Care Fac. Rev. Series 2005 (North Memorial Hlth. Care Proj.): 1,000,000 5.00%, 9/1/20 836,590 2,000,000 5.00%, 9/1/29 1,402,700 Maple Grove Hlth. Care Sys. Rev. Series 2007 (Maple Grove Hosp. Corp.): 1,200,000 5.25%, 5/1/25 1,016,016 1,500,000 5.25%, 5/1/28 1,158,240 300,000 Maplewood Hlth. Care Fac. Rev. Refunding Series 2005-A (VOA Care Centers Proj.), 4.375%, 10/1/09 296,301
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Marshall Medical Center Gross Rev. (Weiner Memorial Medical Center Proj.): 150,000 Series 2003-B, 4.85%, 11/1/11 148,351 50,000 Series 2003-A, 5.00%, 11/1/14 47,636 850,000 Series 2003-A, 5.85%, 11/1/23 735,343 100,000 Series 2003-A, 6.00%, 11/1/28 82,143 3,500,000 Marshall Medical Ctr. Gross Rev. Series 2006 (Avera Marshall Reg. Med. Ctr. Proj.), 4.75%, 11/1/28 2,328,725 1,000,000 Meeker Co. Hosp. Facs. Gross Rev. Series 2007 (Mem. Hosp. Proj.), 5.00%, 11/1/14 863,460 Minneapolis Hlth. Care Sys. Rev. Series 2008-A (Fairview Hlth Svcs. Proj.): 1,000,000 6.00%, 11/15/18 1,017,800 500,000 6.375%, 11/15/23 497,815 1,000,000 Minneapolis Hsg. & Hlth. Care Facs. Rev. Ref. Series 2007-A (Providence Proj.), 5.50%, 10/1/14 832,300 Minneapolis & St. Paul Hsg. & Redev. Auth. Hlth. Care Sys. Rev. Series 2003 (Health Partners Proj.): 700,000 5.25%, 12/1/13 654,003 1,235,000 5.00%, 12/1/14 1,119,046 600,000 5.875%, 12/1/29 439,068 250,000 Minneapolis Pooled Rev. Series 1999 (Care Choice Member Proj.), 5.75%, 4/1/19 184,670 Minneapolis Hlth. Care Fac. Rev.: 1,470,000 Series 2005 (Jones-Harrison Residence Proj.), 5.40%, 10/1/25 943,020 Series 2005-E (Augustana Chapel View Homes Proj.): 200,000 4.20%, 6/1/09 197,600 205,000 4.40%, 6/1/10 197,599 220,000 4.55%, 6/1/11 207,231 240,000 4.80%, 6/1/13 212,431 250,000 4.90%, 6/1/14 216,390 255,000 5.00%, 6/1/15 208,016 270,000 5.10%, 6/1/16 210,643 285,000 5.25%, 6/1/17 218,544 Minneapolis Hsg. Fac. Rev. (Augustana Chapel View Homes Proj.): Series 2004-A: 315,000 5.20%, 1/1/11 298,251 500,000 5.75%, 1/1/19 384,550 530,000 5.80%, 1/1/24 367,089 200,000 5.50%, 6/1/27 130,044 500,000 Refunding Series 2006-A 5.00%, 6/1/15 425,590 MN Agr. & Econ. Dev. Board Hlth. Care Rev. Series 1999 (Benedictine Care Centers. Proj.): 120,000 5.45%, 8/1/09 119,082 120,000 5.50%, 2/1/10 117,188 MN Agr. & Econ. Dev. Board Rev.: 405,000 Series 2000 (Evangelical Lutheran Good Samaritan Society Proj.), 6.55%, 8/1/16 416,255 220,000 Series 2002 (Evangelical Lutheran Good Samaritan Society Proj.), 5.50%, 2/1/12 222,990 Series 2000-A (Fairview Hlth. Care Sys. Proj.): 10,000 6.375%, 11/15/22 9,832 130,000 6.375%, 11/15/29 120,738 110,000 Moose Lake Cmnty. Hosp. Dist. Hlth. Facs. Rev. Ref. Series 2005-A (Crossover Proj.), 4.10%, 12/1/10 102,969 New Hope Hlth. Care Facs. Rev. (MN Masonic Home North Ridge Proj.): 1,125,000 5.90%, 3/1/19 855,956 860,000 5.875%, 3/1/29 537,870 900,000 Northfield Hospital Rev. Series 2006 5.50%, 11/1/15 839,592 Olmsted Co. Hlth. Care Fac. Rev. Series 1998 (Olmsted Medical Ctr. Proj.): 775,000 5.45%, 7/1/13 698,849 900,000 5.55%, 7/1/19 663,372 Pine Island Hlth. Care Facs. Rev. Series 2001 (Olmsted Med. Ctr. Proj.): 155,000 4.90%, 7/1/09 153,438 240,000 5.00%, 7/1/10 233,244 200,000 Puerto Rico Indus. Tourist Educ. Med. & Environmental Ctl. Facs. Rev. Series 1995-A (Hosp. Auxilio Oblig. Group Proj.), 6.25%, 7/1/16 200,036 Redwood Falls Hosp. Fac. Gross Rev. Series 2006 (Redwood Area Hosp. Proj.): 190,000 5.00%, 12/1/09 186,721 100,000 5.00%, 12/1/10 96,447 1,000,000 5.00%, 12/1/21 699,230 100,000 Rochester Hlth. Care Facs. Rev. Series 2006 (Mayo Clinic Proj.), 5.00%, 11/15/36 81,014
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Shakopee Hlth. Care Facs. Rev. Series 2004 (St. Francis Regl. Med. Ctr. Proj.): 125,000 5.10%, 9/1/25 89,503 3,475,000 5.25%, 9/1/34 2,281,998 Stillwater Hlth. Care Rev. Series 2005 (Hlth. Sys. Obligation Proj.): 2,500,000 5.00%, 6/1/25 1,969,050 750,000 5.00%, 6/1/35 524,618 510,000 St. Cloud Hosp. Facs. Rev. Ref. Series 1996-B (St. Cloud Hosp. Proj.), 5.00%, 7/1/20 435,203 1,000,000 St. Louis Park Hlth. Care Facs. Rev. Series 2008-C (Park Nicollet Hlth. Svcs. Proj.), 5.50%, 7/1/23 859,020 St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 1998 (Regions Hosp. Proj.): 250,000 5.00%, 5/15/10 245,708 60,000 5.00%, 5/15/11 57,925 1,365,000 5.20%, 5/15/13 1,279,647 2,070,000 5.25%, 5/15/18 1,751,593 1,000,000 St. Paul Hsg. & Redev. Auth. Hosp. Rev. Series 2005 (Health East Proj.), 5.25%, 11/15/14 810,120 1,982,196 St. Paul Hsg. & Redev. Auth. Nursing Home Dev. Rev. Series 2006, 5.63%, 10/1/33 1,140,595 1,210,000 St. Paul HRA Rev. Refunding Series 1996-C (St. Mary's Home Proj.), 7.00%, 7/1/21 995,213 St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2005 (Gillette Childrens Hosp. Proj.): 300,000 4.00%, 2/1/11 281,058 200,000 5.00%, 2/1/13 180,204 210,000 5.00%, 2/1/14 184,330 160,000 5.00%, 2/1/15 132,675 285,000 St. Paul Hsg. & Redev. Auth. Hlth. Care Rev. Series 2001-A (Model Cities Hlth. Ctr.), 6.50%, 11/1/11 261,046 410,000 St. Paul Port Auth. Lease Rev. Series 2005-A (Health East Midway Campus Proj.), 5.00%, 5/1/10 388,163 50,000 Washington Co. Hsg. & Redev. Auth. Hosp. Rev. Series 1998 (Healtheast Proj.), 5.25%, 11/15/12 43,452 ---------------- 57,367,334 ---------------- INDUSTRIAL / POLLUTION CONTROL (3.6%) 460,000 Burnsville Solid Waste Rev. Refunding Series 2003-A (Freeway Transfer Inc. Proj.), 4.15%, 4/1/10 453,923 615,000 Cohasset Pollution Ctrl. Rev. Refunding Series 2004 (Allete, Inc. Proj.), 4.95%, 7/1/22 471,551 355,000 E. Grand Forks Indus. Dev. Rev. Refunding Series 2001-B (Am. Crystal Sugar Proj.), 5.40%, 4/1/11 362,270 500,000 Otter Tail Co. Rev. Sub. Series 2007-A (Otter Tail Proj.), 7.50%, 11/1/19 356,800 Owatonna Industrial Dev. Rev. Series 1997 (Slidell, Inc. Proj.): 280,000 7.25%, 5/1/14 (3) 184,800 505,000 7.375%, 5/1/17 (3) 333,300 Puerto Rico Childrens Trust Fund Tobacco Settlement Rev.: 300,000 Series 2002, 4.00%, 5/15/10 293,805 985,000 Series 2002, 5.375%, 5/15/33 662,964 465,000 Roseville Dev. Rev. Refunding Series 2004 (Roseville Office Plaza Proj.), 4.625%, 8/1/12 476,797 265,000 Sauk Centre Industrial Dev. Rev. Series 1998 (Seluemed LLP Proj.)(LOC First Trust), 5.75%, 4/1/18 216,826 St. Paul Hsg. & Redev. Auth. District Cooling Rev. Series 1998-J: 95,000 5.125%, 3/1/12 95,168 500,000 5.35%, 3/1/18 500,175 Virgin Islands Tobacco Settlement Financing Corp. Asset-Backed Rev. Series 2001: 750,000 zero coupon, 4.95% effective yield, 5/15/14 682,380 1,305,000 5.00%, 5/15/21 1,000,922 2,075,000 White Earth Band of Chippewa Indians Rev. Series 2000-A, 7.00%, 12/1/11 2,121,335 ---------------- 8,213,016 ---------------- INSURED (4.9%) 1,500,000 Bemidji Hlth. Care Facs. Rev. Series 2002 (North Country Hlth. Svcs. Proj.) (Radian insured) 5.00%, 9/1/24 1,235,775 1,600,000 Cohasset Poll. Ctl. Rev. Ref. Series 2004 (Coll. Allete Proj.) (Radian-IBCC insured), 4.95%, 7/1/22 1,265,408 20,000 Itasca Co. ISD No. 318 G.O. Series 1996 (MBIA insured), 5.20%, 2/1/10 20,058 Minneapolis & St. Paul Metro Airport Comm. Airport Rev.: 75,000 Series 1999-B, 5.25%, 1/1/18 69,119 20,000 Series 2001-B, 5.75%, 1/1/16 19,628 1,000,000 Sub. Series 2001-D, 5.75%, 1/1/14 994,440 2,010,000 Ref. Sub. Series 2005-C, 5.00%, 1/1/22 1,961,237 1,750,000 Sub. Series 2007-B, 5.00%, 1/1/25 1,652,350
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Perham Gas Utility Rev. Series 1999 (Radian insured): 300,000 5.35%, 6/1/19 300,069 50,000 5.45%, 6/1/29 43,802 1,000,000 Puerto Rico Cwlth. Hwy. & Trnsn. Auth. Rev. Ref. Series 2007-N (FSA insured), variable rate, 7/1/45 360,000 600,000 Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU (FSA insured), variable rate, 7/1/29 312,000 250,000 St. Cloud Hlth. Care Rev. Series 2000-A (St. Cloud Hosp. Obligated Group) (FSA insured), 5.75%, 5/1/26 244,350 2,190,000 St. Paul Hsg. & Redev. Sales Tax Rev. Refunding Series 1996 (Civic Center Proj.) (FSA insured), 7.10%, 11/1/23 2,517,383 ---------------- 10,995,619 ---------------- MULTIFAMILY MORTGAGE (19.8%) Apple Valley Multifamily Hsg. Rev. Refunding Series 1998-A (Mtg. Loan/Apple Valley Villa Proj.) (GNMA collateralized): 40,000 4.90%, 8/1/09 40,088 1,520,000 5.25%, 8/1/18 1,520,334 Austin Hsg. & Redev. Auth. Governmental Hsg. Gross Rev. (Courtyard Res. Proj.): 640,000 Series 2000-A, 7.15%, 1/1/20 568,966 500,000 Series 2000-A, 7.25%, 1/1/32 391,580 2,715,000 Carver Co. Hsg. & Redev. Auth. Multifamily Hsg. Gross Rev. & Ltd. Tax Refunding Series 1997-A (Lake Grace Apts. Proj.), 6.00%, 7/1/28 1,736,623 Chaska Multifamily Hsg. Rev. Series 1999 (West Suburban Hsg. Partners Proj.): 65,000 5.00%, 9/1/09 64,290 495,000 5.375%, 9/1/14 433,783 500,000 Cloquet Hsg. Fac. Rev. Ref. Series 2005-A (HADC Cloquet LLC Proj.), 5.50%, 8/1/25 312,125 700,000 Coon Rapids Multifamily Hsg. Rev. Refunding Series 1997-A (Margaret Place Apts. Proj.), 6.50%, 5/1/25 535,437 Coon Rapids Senior Hsg. Rev. Refunding Series 1998 (Epiphany Sr. Citizens Hsg. Corp. Proj.): 170,000 5.50%, 11/1/10 161,981 545,000 5.80%, 11/1/18 453,849 3,065,000 Cottage Grove Sr. Hsg. Rev. Series 2006-A (Cottage Grove, Inc. Proj.), 5.00%, 12/1/31 1,621,079 Dakota Co. Cmnty. Dev. Agy. Multifamily Hsg. Rev. Ref. Series 2007-A (Commons On Marice Proj.) 150,000 4.40%, 11/1/09 146,788 Eden Prairie Multifamily Hsg. Rev. Refunding: 470,000 Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.00%, 8/20/21 485,407 675,000 Senior Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.15%, 8/20/31 675,756 1,185,000 Series 2001-A (Rolling Hills Proj.) (GNMA collateralized), 6.20%, 2/20/43 1,166,704 714,000 Subordinate Series 2001-C (Rolling Hills Proj.), 9.00%, 4/1/43 563,881 Eveleth Multifamily Hsg. Rev. Sr. Series 2006-A1 (Manor House Woodland Proj.): 135,000 4.90%, 10/1/09 132,963 140,000 4.95%, 10/1/10 135,295 100,000 5.00%, 10/1/11 94,849 155,000 5.10%, 10/1/12 138,300 165,000 5.15%, 10/1/13 142,791 Faribault Hsg. & Redev. Auth. Govt. Hsg. Dev. Gross Rev. Ref. Series 1998-A (Trails Edge Apts. Proj.): 355,000 5.125%, 2/1/18 359,594 650,000 5.25%, 2/1/28 658,476 Fairmont Hsg. Fac. Rev. Series 2002-A1 (Homestead-GEAC Proj.): 770,000 6.625%, 10/1/11 712,519 295,000 6.875%, 10/1/14 255,933 Fairmont Hsg. Fac. Rev. Series 2005-A (Goldfinch Estates-GEAC Proj.): 300,000 5.75%, 10/1/17 224,712 290,000 6.00%, 10/1/21 205,723
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Golden Valley Rev. Series 1999-A (Covenant Retirement Cmntys. Proj.): 695,000 5.50%, 12/1/25 528,513 2,000,000 5.50%, 12/1/29 1,439,000 Grand Rapids Hsg. & Redev. Auth. (Lakeshore Place and Forest Park West Apts. Proj.): 10,000 Series 1999-B, 5.00%, 10/1/09 9,924 500,000 Series 1999-A, 5.20%, 10/1/19 409,660 1,660,000 Series 1999-A, 5.30%, 10/1/29 1,150,828 245,000 Inver Grove Heights Nursing Home Rev. Ref. Series 2006 (Presbyterian Homes Care Proj.), 5.50%, 10/1/33 141,267 1,400,000 Maplewood Multifamily Hsg. Rev. Series 1998 (Park Edge Apts. Proj.), 6.50%, 5/1/29 974,386 2,765,000 Minneapolis & St. Paul Hsg. & Redev. Auth. Multifamily Hsg. Rev. Series (Torre De San Proj.) (GNMA Collateralized), 4.75%, 1/20/42 1,902,016 Minneapolis Multifamily Hsg. Rev.: 305,000 Series 1996 (Belmont Apts.), 7.25%, 11/1/16 286,770 3,365,000 Series 1996-A (Nicollet Towers) (Section 8), 6.00%, 12/01/19 3,365,034 1,200,000 Series 1998 (Riverside Plaza Proj.) (GNMA collateralized), 5.10%, 12/20/18 1,139,844 310,000 Series 2000 (Garr Scott Loft Proj.) (LOC U.S. Bank), 5.95%, 5/1/30 311,373 835,000 Series 2007 (Blaisdell Apts. Proj.), 5.10%, 4/1/17 654,005 Ref. Series 2007-A (Keeler Apts. Proj.): 150,000 4.50%, 10/1/12 136,467 580,000 4.65%, 10/1/15 483,030 Moorhead Sr. Hsg. Rev. Series 2006 (Sheyenne Crossing Proj.): 300,000 5.00%, 4/1/13 270,267 170,000 5.10%, 4/1/14 145,760 MN HFA Hsg. Fin. Agy. Rental Hsg.: 85,000 Series 2004-A, 4.875%, 8/1/24 70,493 Series 1997-A: 60,000 5.40%, 8/1/10 60,451 125,000 5.45%, 8/1/11 125,639 1,350,000 MN HFA Residential Hsg. Rev. Series 2006-I, 5.00%, 7/1/21 1,197,585 650,000 MN HFA Residential Hsg. Rev. Series 2006-A1, 5.10%, 8/1/47 475,664 Minnetonka Multifamily Hsg. Rev. Ref. Series 1999-A (GNMA coll.) (Archer Heights Apts. Proj.): 540,000 5.10%, 7/20/13 542,457 975,000 5.20%, 1/20/18 934,879 North Oaks Sr. Hsg. Rev. Series 2007 (Presbyterian Homes North Oaks Proj.): 500,000 5.25%, 10/1/13 437,940 1,565,000 5.625%, 10/1/17 1,209,542 500,000 5.75%, 10/1/22 349,460 Northwest MN Multi Co. Hsg. & Redev. Auth. Hsg. Rev. Series 2005-A (Pooled Hsg. Proj.): 145,000 4.50%, 7/1/09 143,937 115,000 4.75%, 7/1/10 111,865 Norwood Young America Econ. Dev. Auth. Gov. Rev. Series 2005-A (Harbor at Peace Village Proj.): 150,000 5.35%, 8/1/15 128,570 200,000 5.625%, 8/1/20 151,916 550,000 5.75%, 8/1/25 380,826 250,000 6.00%, 8/1/31 163,563 600,000 Oakdale Multifamily Sr. Hsg. Rev. Refunding Series 2004 (Oak Meadows Proj.), 5.00%, 4/1/12 556,392 Oronoco Multifamily Hsg. Rev. Ref. Series 2006 (Wedum Shorewood Campus Proj.): 305,000 4.65%, 6/1/09 302,032 725,000 4.70%, 6/1/11 685,894 Pine City Hlth. Care & Hsg. Rev. Series 2006-A (North Branc Proj.): 125,000 4.50%, 10/20/16 124,051 300,000 4.75%, 10/20/21 274,119 500,000 Richfield Sr. Hsg. Rev. Refunding Series 2004-A (Richfield Sr. Hsg., Inc. Proj.), 5.00%, 12/1/15 399,280 2,800,000 Rochester Multifamily Rev. Refunding Series 2000-A (Weatherstone Apts. Proj.) (LOC Household Fin.) (Mandatory Put 9/1/17) 6.375%, 9/1/37 2,877,280 600,000 St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev. Refunding Series 1998 (Northway Manor Apts. Proj.) (Section 8), 5.35%, 12/1/18 440,694 St. Cloud Hsg. & Redev. Auth. Multifamily Hsg. Rev.: 1,365,000 Series 1993 (Germain Towers Proj.) (Section 8), 5.90%, 9/1/20 991,154 60,000 Series 1999-A (Parkview Terrace Apts. Proj.) (Section 8), 5.00%, 6/1/09 39,000 200,000 St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Series 1995 (Sun Cliffe Apts. Proj.) (GNMA collateralized), 5.875%, 7/1/15 201,364 1,000,000 St. Paul Hsg. & Redev. Auth. Multifamily Refunding Rev. Ref. Series 2007-A, (Marian Ctr. Proj.), 5.20%, 11/1/22 633,130 St. Paul Hsg. & Redev. Auth. Rev. Series 2007-A (Rossy & Richard Schaller Proj.): 400,000 5.15%, 10/1/42 198,592 450,000 4.80%, 10/1/18 330,282 735,000 Stillwater Multifamily Hsg. Rev. Series 2007 (Orleans Homes LP Proj.), 5.00%, 2/1/17 580,856 120,000 Victoria Sr. Hsg. Rev. Series 2003 (Chanhassen, Inc. Proj.), 5.50%, 8/1/18 90,596 Washington Co. Hsg. & Redev. Auth. Governmental Hsg. Rev. Ref. Series: 755,000 1999-A (Briar Pond Apts. Proj.) (GNMA collateralized), 5.50%, 2/20/14 731,587
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 695,000 2002 (Woodland Park Apts. Proj.) (Co. Guaranteed), 4.70%, 10/1/26 598,451 1,000,000 Willmar Hsg. & Redev. Auth. Multifamily Rev. Sub. Series 2008-B (Copperleaf Proj.), 8.00%, 3/15/41 774,850 250,000 Woodbury Econ. Dev. Auth. Sr. Hsg. Rev. Series 2006-B (Summerhouse Woodbury Proj.), 5.75%, 6/1/41 150,058 ---------------- 44,752,419 ---------------- MUNICIPAL LEASE (2.4%) 200,000 Andover Econ. Dev. Auth. Public Fac. Lease Rev. Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 217,562 300,000 Andover Econ. Dev. Auth. Lease Rev. Prerefunded Series 2004 (Cmnty. Ctr. Proj.), 5.125%, 2/1/24 326,343 40,000 Anoka Co. C.O.P. Series 1998, 5.40%, 6/1/28 40,007 100,000 Big Lake Econ. Dev. Auth. Public Proj. Rev. Series 2005-A, 4.20%, 2/1/10 100,982 1,933,099 Carver Scott Co. Lease Purchase Agreement Series 2005, 5.00%, 8/4/20 1,445,282 50,000 Chaska Econ. Dev. Auth. ISD No. 112 Sch. Facs. Lease Rev. Series 1999-A, 5.125%, 12/1/09 51,510 89,000 Hennepin Co. Hsg. & Redev. Auth. Rev. Series 1993-A (Community Provider Program), 5.70%, 8/1/13 89,112 614,588 Intermediate Sch. Dist. 287 Lease Rev. Series 2006, 4.78%, 3/15/13 573,539 65,000 Mountain Iron Hsg. & Redev. Auth. Rev. Series 2001-A (Arrowhead Library Sys. Proj.), 5.00%, 9/1/09 65,844 Virginia Hsg. & Redev. Auth. Hlth. Care Fac. Lease Rev. Series 2005: 300,000 4.00%, 10/1/09 298,386 300,000 4.50%, 10/1/10 297,099 200,000 5.00%, 10/1/11 197,562 1,250,000 5.125%, 10/1/20 1,031,763 150,000 5.25%, 10/1/14 143,424 400,000 5.25%, 10/1/25 301,512 315,000 5.375%, 10/1/30 225,830 ---------------- 5,405,757 ---------------- PUBLIC FACILITIES (0.5%) 50,000 MN Agr. Soc. State Fair Rev. Series 2003, 5.00%, 9/15/20 40,468 250,000 Rockville Econ. Dev. Auth. Pub. Proj. Lease Rev. Series 2005-A, 4.00%, 2/1/14 244,513 Spring Grove Econ. Dev. Auth. Pub. Proj. Rev. Series 2006-A: 135,000 4.625%, 2/1/12 135,213 255,000 5.00%, 2/1/16 251,731 125,000 5.10%, 2/1/18 120,945 Victoria Recreational Facility Gross Rev. Series 2002: 70,000 4.75%, 2/1/12 71,734 75,000 4.75%, 8/1/12 76,858 85,000 5.10%, 8/1/15 87,329 205,000 Victoria Rec. Fac. Gross Rev. Ref. Crossover Series 2006-A, 4.55%, 8/1/17 148,658 ---------------- 1,177,449 ---------------- SINGLE FAMILY MORTGAGE (12.6%) Dakota Co. Cmnty. Dev. Agy. Single Family Mtg. Rev.: 2,756,366 Series 2006 (FNMA, GNMA, & FHLMC backed), 5.30%, 12/1/39 2,451,677 1,952,354 Series 2007-A (FNMA, GNMA, & FHLMC backed), 5.125%, 12/1/40 1,714,831 Minneapolis- St. Paul Hsg. Fin. Bd. Single Family Mtg. Rev. (FNMA & GNMA backed): 20,000 Series 1997, 6.25%, 11/1/30 18,842 1,172,848 Series 2005-A3, 5.10%, 4/1/27 1,154,903 3,914,548 Series 2007-A1, 5.25%, 12/1/40 3,571,673 995,000 Series 2007-A2, 5.52%, 3/1/41 886,505 MN HFA Single Family Mtg. Rev.: 350,000 Series 1994-E, 5.60%, 7/1/13 350,420 195,000 Series 1994-E, 5.90%, 7/1/25 194,982 75,000 Series 1996-D, 6.00%, 1/1/16 75,076 50,000 Series 1997-A, 5.60%, 7/1/09 50,109 210,000 Series 1997-I, 5.50%, 1/1/17 210,821 125,000 Series 1996-H, 6.00%, 1/1/21 125,025 485,000 Series 1997-D, 5.85%, 7/1/19 483,598 30,000 Series 1997-E, 5.90%, 7/1/29 28,988 10,000 Series 1997-G, 6.00%, 1/1/18 10,096
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 610,000 Series 1998-C, 5.25%, 1/1/17 611,641 175,000 Series 1998-F-1, 5.45%, 1/1/17 176,370 50,000 Series 1998-F, 5.70%, 1/1/17 50,414 55,000 Series 1998-A, 4.80%, 7/1/09 55,668 60,000 Series 1998-A, 4.90%, 7/1/10 60,691 2,420,000 Series 1998-G, 6.00%, 7/1/22 2,451,508 1,000,000 Series 1999-B, 5.20%, 7/1/17 1,002,320 305,000 Series 1999-B, 5.25%, 1/1/20 306,982 55,000 Series 1999-H, 5.30%, 7/1/11 55,790 100,000 Series 2000-A, 5.75%, 7/1/18 100,381 115,000 Series 2000-C, 6.10%, 7/1/30 111,649 485,000 Series 2001-A, 5.35%, 7/1/17 489,903 825,000 Series 2002-E, 5.00%, 1/1/20 800,555 320,000 Series 2003-I, 4.30%, 7/1/11 320,134 600,000 Series 2003-I, 5.10%, 7/1/20 545,376 500,000 Series 2005-G, 4.30%, 1/1/18 475,580 1,750,000 Series 2006-B, 5.00%, 1/1/37 1,639,435 1,950,000 Series 2006-M, 4.80%, 7/1/26 1,561,580 1,000,000 Series 2007-I, 4.75%, 7/1/27 782,490 2,000,000 Series 2007-Q, 5.15%, 7/1/28 1,643,640 2,000,000 Series 2007-Q, 5.25%, 7/1/33 1,604,520 1,165,000 Series 2008-B, 5.50%, 7/1/28 1,010,649 1,500,000 Series 2008-B, 5.65%, 7/1/33 1,286,100 ---------------- 28,470,922 ---------------- TRANSPORTATION (0.5%) Minneapolis & St. Paul Metro Airport Comm. Airport Rev.: 1,250,000 Sub. Series 2005-B, 5.00%, 1/1/25 975,287 100,000 Ref. Sub. Series 2005-C, 5.00%, 1/1/31 89,329 ---------------- 1,064,616 ---------------- UTILITY (6.3%) 1,000,000 Chaska Elec. Rev. Ref. Series 2005-A (Generating Facs. Proj.), 5.25%, 10/1/25 961,350 965,000 Laurentian Energy Auth. MN Cogeneration Rev. Series 2005-A, 4.00%, 12/1/09 960,590 MN Muni Pwr. Agy. Elec. Rev.: 2,000,000 Series 2004-A, 5.25%, 10/1/24 1,825,500 4,465,000 Series 2005, 5.00%, 10/1/35 3,586,868 700,000 Series 2007, 5.25%, 10/1/27 620,431 North Branch Elec. Sys. Rev. Series 2008-B: 250,000 5.00%, 8/1/22 221,030 500,000 5.75%, 8/1/28 436,770 1,250,000 Puerto Rico Elec. Pwr. Auth. Rev. Ref. Series 2007-UU, variable rate, 7/1/25 587,500 2,000,000 Puerto Rico Elec. Pwr. Auth. Rev. Series 2005-RR, 5.00%, 7/1/22 1,652,000 3,100,000 Southern MN Pwr. Agy. Pwr. Supply Sys. Rev Series 2006, 4.84%, 1/1/13 2,731,813 780,000 Virgin Islands Water & Power Auth. Water Sys. Rev. Ref. Series 1998, 5.50%, 7/1/17 697,694 ---------------- 14,281,546 ---------------- OTHER REVENUE BONDS (9.3%) 830,000 Brooklyn Park Econ. Dev. Auth. Tax Increment Rev. Series 2007-A (Huntington Site Dev. Proj.), 5.00%, 2/1/10 841,620 Columbia Heights Econ. Dev. Auth. Tax Increment Rev. Series 2007 (Huset Park Area Redev. Proj.): 295,000 5.00%, 2/15/17 222,920 510,000 5.20%, 2/15/22 332,566 900,000 Commissioner of Iron Range Resources and Rehab. Gross Rev. (Giant's Ridge Rec. Area Proj.), Series 2000, 7.25%, 11/1/16 858,870 750,782 Crystal Governmental Fac. Rev. Series 2006, 5.095%, 12/15/26 482,565 Lakeville Liquor Rev. Series 2007: 145,000 5.00%, 2/1/11 141,778 190,000 5.00%, 2/1/17 161,994 210,000 5.00%, 2/1/22 158,334 230,000 McLeod Co. Commercial Dev. Rev. Series 2005 (Southwest MN Foundation Proj.), 5.125%, 12/1/31 197,943 Minneapolis Cmty. Dev. Agy. Ltd. Tax Common Bond Fund: 90,000 Series 1996-1 (LOC-U.S. Bank), 6.00%, 6/1/11 90,979 500,000 Series 1999-1A (Discount Steel), 5.25%, 6/1/19 475,100 160,000 Series 2000-G2 (LOC-U.S. Bank), 6.00%, 12/1/20 161,459 Minneapolis Tax Increment Rev. Refunding Series 2007 (East River/Unocal Site Proj.): 165,000 4.80%, 2/1/12 150,274 245,000 5.10%, 2/1/17 189,084 240,000 5.20%, 2/1/21 163,668
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Minneapolis Tax Increment Rev. Refunding Series 2004 (St. Anthony Falls Proj.): 600,000 4.50%, 2/1/13 516,180 75,000 4.40%, 2/1/09 74,809 100,000 4.50%, 2/1/10 96,688 100,000 4.60%, 2/1/11 93,334 125,000 4.70%, 2/1/12 112,810 125,000 4.80%, 2/1/13 109,046 600,000 Minneapolis Tax Increment Rev. Series 2006 (Grant Park Proj.), 5.00%, 2/1/16 476,496 Mound Hsg. & Redev. Auth. Tax Increment Rev. Ref. Series 2006 (Metroplaines Proj.): 220,000 4.25%, 8/15/11 219,657 1,205,000 5.00%, 2/15/27 1,005,741 St. Anthony Hsg. & Redev. Auth. Tax Increment Rev. Series 2007 (Silver Lake Vlg. Phase 1A Proj.): 500,000 4.75%, 2/1/17 374,535 500,000 4.90%, 2/1/22 319,675 St. Paul Hsg. & Redev. Auth. Rev. Series 2008 (Jimmy Lee Rec. Ctr. Proj.): 500,000 4.75%, 12/1/26 443,590 500,000 5.00%, 12/1/32 441,525 St. Paul Hsg. & Redev. Auth. Tax Increment Rev.: 155,000 Series 2001 (US Bank Operations Ctr. Proj.), 5.40%, 8/1/09 153,441 100,000 Series 2001 (US Bank Operations Ctr. Proj.), 5.70%, 8/1/12 92,091 800,000 Series 2001 (US Bank Operations Ctr. Proj.), 6.125%, 8/1/19 613,448 1,099,000 Series 2002 (North Quadrant Owner Occupied Proj. Phase 2), 7.00%, 2/15/28 778,048 984,000 Series 2002 (North Quadrant Owner Occupied Proj. Phase 1), 7.50%, 2/15/28 732,165 3,000,000 Series 2002-A (Upper Landing Proj.), 6.80%, 3/1/29 2,053,470 1,962,000 Series 2002-B-2 (Upper Landing Proj.), 6.90%, 3/1/29 1,359,391 1,182,000 Series 2002 (Drake Marble Proj.), 6.75%, 3/1/28 812,117 1,249,000 Series 2004 (9th St. Lofts Proj.), 6.375%, 2/15/28 818,944 St. Paul Port Auth. Lease Rev. Series 2007-1 (Regions Hosp. Parking Ramp Proj.): 155,000 5.00%, 8/1/09 153,275 200,000 5.00%, 8/1/10 194,062 390,000 5.00%, 8/1/11 371,038 805,000 5.00%, 8/1/21 529,811 2,150,000 5.00%, 8/1/36 1,128,836 715,000 St. Paul Recreational Facs. Gross Rev. Series 2005 (Highland National Proj.), 5.00%, 10/1/25 715,879 Steele Co. Hlth. Care Fac. Gross Rev. Refunding Crossover Series 2005-B: 475,000 4.65%, 6/1/20 397,523 300,000 5.00%, 6/1/30 219,378 85,000 Steele Co. Hlth. Care Fac. Gross Rev. Unref. Bal. Series 2000 (Elderly Housing Proj.), 6.625%, 6/1/20 86,293 620,000 Steele Co. Hlth. Care Fac. Gross. Rev. Prerefunded Series 2000 (Elderly Hsg. Proj.), 6.625%, 6/1/20 656,791 185,000 Virgin Islands Public Fin. Auth. Rev. Gross Receipts Taxes Loan Series 1999-A, 5.625%, 10/1/10 189,220 125,000 Virgin Islands Pub. Fin. Auth. Sr. Lien Rev. Series 2004-A, 5.25%, 10/1/21 98,413 ---------------- 21,066,874 ---------------- Total municipal bonds (cost: $265,728,858) 221,439,156 ---------------- CLOSED-END MUTUAL FUNDS (0.8%) (2) 10,900 Delaware Investments Minnesota Municipal Income Fund II 113,578 44,100 First American Minnesota Municipal Income Fund II 452,025 124,000 MN Municipal Income Portfolio 1,264,800 ---------------- Total closed-end mutual funds (cost: $2,389,307) 1,830,403 ---------------- SHORT-TERM SECURITIES (0.4%)(2) 899,644 Wells Fargo Minnesota Municipal Cash Fund, 0.82% 899,644 ---------------- Total Short-Term Securities (cost: $899,644) Total investments in securities (cost: $269,017,809) $ 224,169,203 ================
================================================================================================================================== MINNESOTA TAX-FREE INCOME FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- QUANTITY/PAR ($) NAME OF ISSUER MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets and Liabilities, Net (+0.87%) 1,966,969 ---------------- Total Net Assets $ 226,136,172 ================ ---------------- Aggregate Cost 269,017,809 ---------------- Gross Unrealized Appreciation 623,148 Gross Unrealized Depreciation (45,471,754) ---------------- Net Unrealized Appreciation(Depreciation) (44,848,606) ================
Notes To Schedule of Investments: - -------------------------------- (1) Securities Valuation: The Fund adopted Financial Accounting Standards Board ("FASB") Statement of Accounting Standards No. 157 ("FAS 157"). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below. LEVEL 1 - quoted prices in active markets for identical investments LEVEL 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) LEVEL 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund's Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value. The following is a summary of the inputs used in valuing the Fund's assets carried at fair value: INVESTMENTS IN SECURITIES VALUATION INPUTS AT VALUE ------------------------- Level 1 - Quoted Prices $ 1,830,403 Level 2 - Other Significant Observable Inputs $222,338,800 Level 3 - Significant Unobservable Inputs -- - ------------------------------------------------------------------------------ Total $224,169,203 ============================================================================== (2) Percentage figures indicate percentage of total net assets. (3) Presently non-income producing securities.
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS (96.6%) (2) ALABAMA (1.7%) 100,000 Bessemer Med. Clinic Rev. (Bessemer Carraway) 7.25 4/1/2015 100,091 100,000 Huntsville-Redstone Vlg. Spl. Care Facs. Auth. 5.25 1/1/2015 83,619 150,000 Pell City Spl. Care. Rev. (Noland Hlth. Svcs.) 5.25 12/1/2027 102,699 260,000 University of Alabama Birmingham Hosp. Rev. 5.75 9/1/2022 233,574 ---------------- 519,983 ---------------- ALASKA (2.4%) 250,000 AK Hsg. Fin. Corp. Gen. Mtg. Rev. 6.00 6/1/2049 243,542 250,000 AK Indl. Dev. & Expt. Rev. (Boys & Girls Home) 5.50 12/1/2012 226,510 300,000 Aleutians East Burough (Aleutian Pribilof Islands) 5.50 6/1/2025 157,965 150,000 Matanuska-Susitna Boro COP (Animal Care) 5.75 3/1/2023 121,899 ---------------- 749,916 ---------------- ARIZONA (3.8%) 95,880 AZ Hlth. Facs. Auth. Rev. (New AZ Family) 5.25 1/7/2027 61,220 250,000 Flagstaff Indl. Dev. Auth. (Sr. Living Cmnty.) 5.50 7/1/2022 172,465 250,000 Pima Co. Indl. Dev. Auth. (Coral Academy Science) 6.38 12/1/2018 211,305 100,000 Pima Co. Indl. Dev. Rev. (Academic Success) 5.38 7/1/2022 73,439 250,000 Pima Co. Indl. Rev. Ref. (Tucson Country Day Sch.) 5.00 6/1/2022 177,108 235,000 Pima Co. Indl. Dev. Rev. (AZ Charter Schools) 6.10 7/1/2024 172,824 150,000 Scottsdale Indl. Rev. Ref. (Scottsdale Healthcare) 5.25 9/1/2030 112,304 250,000 Southside Cmnty. Spl. Assmt. Rev. (Prescott Vy.) 6.13 7/1/2018 197,365 ---------------- 1,178,030 ---------------- CALIFORNIA (3.5%) 150,000 CA Tob. Sec. Corp. Asset-Backed Sr. Rev. 5.10 6/1/2028 90,249 140,000 CA Statewide Cmntys. Rev. (Lancer Educ.) 5.40 6/1/2017 106,424 100,000 CA Statewide Cmntys. Spl. Tax Rev. (Orinda) 6.00 9/1/2029 69,096 500,000 Center Uni. Sch. Dist. G.O. (1991 Election) 6.07 8/1/2031 102,540 250,000 Central Valley Fin. Auth. Rev. Ref. (Carson Ice) 5.00 7/1/2018 234,765 200,000 Delta Diablo Sanitation (Wastewater Facs.) 6.25 12/1/2014 152,312 200,000 Dinuba Fin. Auth. Lease Rev. (Measure R Road) 5.10 9/1/2022 141,678 25,000 Los Angeles Regl. Arpts. Impt. Lease Rev. 10.25 1/1/2013 24,467 200,000 Rialto Redev. Agy. Tax Alloc. (Merged Proj.) 6.25 9/1/2037 158,800 ---------------- 1,080,331 ---------------- COLORADO (4.9%) 250,000 Co. Hlth. Facs. Rev. Ref. (Valley View Hosp.) 5.50 5/15/2028 167,867 195,000 Denver Hlth. & Hosp. Auth. Healthcare Rev. 2.58 12/1/2033 78,000 1,000,000 E-470 Pub. Hwy. Auth. Cap. Appeciation Rev. 6.20 9/1/2028 169,550 150,000 E-470 Pub. Hwy. Auth. Rev. 5.50 9/1/2024 124,414 300,000 Fruita Rev. (Family Hlth. West) 7.00 1/1/2018 249,420 160,000 Interlocken Met. Dist. Ref. G.O. 5.75 12/15/2019 131,203 250,000 La Junta Hosp. Rev. (Ark Valley Regl. Med. Ctr.) 6.10 4/1/2024 208,000 350,000 CO Pub. Auth. For Energy Nat. Gas. Rev. 5.75 11/15/2018 300,115 150,000 Walker Field Pub. Arpt. Auth Rev. 4.75 12/1/2027 95,486 ---------------- 1,524,055 ---------------- CONNECTICUT (2.2%) 50,000 CT DFA Pollution Ctl. Rev. Ref. (CT Light & Power) 5.85 9/1/2028 41,246 250,000 CT Hlth. & Educ. Facs. Auth. Rev. (Eastern CT) 6.00 7/1/2025 201,700 250,000 Mashantucket Western Pequot Tribe Spl. Rev. 5.75 9/1/2018 188,777 400,000 Mashantucket Western Pequot Tribe Sub. Spl. Rev. 5.55 9/1/2016 239,916 ---------------- 671,639 ---------------- FLORIDA (11.2%) 150,000 Alachua Co. Hlth. Facs Rev. (Shands Hlth. Care) 6.75 12/1/2030 134,868 250,000 Atlantic Beach Healtcare Rev. Ref. (Fleet Landing) 5.38 10/1/2010 243,915 100,000 Connerton West Cap. Impt. Spl. Assmnt. Rev. 5.13 5/1/2016 60,268 250,000 Gramercy Farms Cmnty. Dev. Dist. Spl. Assmnt. 5.10 5/1/2014 125,000 215,000 Heritage Landing Cmnty. Dev. Spl. Assmt. 5.60 5/1/2036 148,483 150,000 Highlands Co. Hlth. Facs. Rev. Ref. (Adventist) 5.00 11/15/2031 110,833 250,000 Hollywood Cmnty. Redev. Agy. Rev. 5.63 3/1/2024 188,465 135,000 Jacksonville Econ. Dev. Rev. (Mayo Clinic) 5.50 11/15/2036 117,712 100,000 Lake Ashton II Cmnty. Dev. Dist. Cap. Impt. Rev. 5.00 11/1/2011 60,096
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 100,000 Lakeland Retirement Cmnty. Rev. Ref. (Carpenters) 5.88 1/1/2019 80,965 250,000 Lee Co. Indl. Rev. Ref. (Shell Pt/Alliance Cmnty.) 5.00 11/15/2029 144,145 250,000 Lee Co. Indl. Dev. Auth. Rev. (Charter Foundation) 5.25 6/15/2027 149,732 100,000 Madeira Cmnty. Dev. Dist. Spl. Assmt. Rev. 5.25 11/1/2014 52,708 250,000 Main St. Cmnty. Dev. Dist. Cap. Impt. Spl. Assmt. 6.90 5/1/2017 192,110 275,000 Miami Beach Hlth. Facs. Hosp. Rev. (Mt. Sinai) 5.38 11/15/2028 145,280 100,000 Miami-Dade Co. Wtr. & Swr. Rev. Ref. 6.00 10/1/2023 103,267 80,000 Miami Spl. Rev. Ref. 6.75 1/1/2015 56,066 305,000 Palm Beach Co. Hlth. Rev. (Abbey Delray South) 5.50 10/1/2011 304,481 100,000 Palm Beach Co. Hlth. Rev. Ref. (Acts Retirement) 5.00 11/15/2020 74,814 160,000 Port St. Lucie Spl. Assmt. Rev. Ref. 6.00 7/1/2021 167,850 135,000 St. Johns Co. Indl. Dev. Auth. Rev. Ref. (Bayview) 5.00 10/1/2017 99,421 250,000 St. Johns Co. Indl. Dev. Auth. Rev. (Presbyterian) 5.63 8/1/2034 163,083 100,000 Sarasota Co. Hlth. Rev. (Vlg. on the Isle) 5.50 1/1/2027 59,491 250,000 Sarasota Natl. Cmnty. Spl. Assessment 5.30 5/1/2039 124,615 50,000 Seminole Tribe Spl. Oblig. Rev. 5.75 10/1/2022 32,473 150,000 Stoneybrook South Cmnty. Spl. Asst. Rev. 5.45 11/1/2015 93,399 300,000 Tallahassee Hlth. Facs. Rev. (Mem. Hlth. Care) 6.38 12/1/2030 233,403 25,000 Waters Edge Cmnty. Dev. Dist. Cap. Impt. 5.00 11/1/2012 16,250 ---------------- 3,483,193 ---------------- GEORGIA (0.6%) 100,000 Chatham Co. Hosp. Rev. Ref. Impt. (Mem. Med. Ctr.) 5.50 1/1/2021 86,565 200,000 Main St. Nat. Gas Inc. Rev. (GA Gas) 5.50 7/15/2017 25,508 100,000 Med. Ctr. Hosp. Auth. (Spring Harbor Green Isl.) 5.25 7/1/2027 59,909 30,000 Private Colleges & Univ. Rev. (Mercer Univ.) 5.38 10/1/2029 20,883 ---------------- 192,865 ---------------- GUAM (0.2%) 100,000 Northern Mariana Islands G.O. 5.00 10/1/2022 65,872 ---------------- IDAHO (1.8%) 335,000 ID Hsg. & Fin. Assn. Rev. (ID Arts Center Sch.) 5.50 12/1/2018 263,786 150,000 ID Hsg. & Fin. Assn. Rev. (Liberty Charter Sch.) 5.50 6/1/2021 116,554 220,000 ID Hsg. & Fin. Assn. Nonprofit Facs. Rev. 5.63 7/1/2021 172,161 ---------------- 552,501 ---------------- ILLINOIS (6.7%) 320,000 Cook Co. Sch. Dist. No. 148 (Dolton) 5.50 12/1/2027 233,514 150,000 Harvey Ref. & Impt. G.O. 5.50 12/1/2027 128,980 250,000 IL Fin. Auth. Rev. (Sedgebrook Inc. Fac.) 5.40 11/15/2016 192,900 165,000 IL Fin. Auth. Rev. (OSF Healthcare Sys.) 5.25 11/15/2022 133,066 150,000 IL Fin. Auth. Rev. (Swedish American Hosp.) 5.00 11/15/2023 119,694 350,000 IL Fin. Auth. Rev. (Tabor Hills Supportive Living) 5.25 11/15/2026 223,384 205,000 IL Fin. Auth. Rev. (Intl. Ice Ctr.) (3) 7.00 12/1/2035 139,148 150,000 IL Fin. Auth. Rev. (Elmhurst Mem.) 5.63 1/1/2037 92,484 200,000 IL Fin. Auth. Rev. (North Shore Ice Arena) 6.25 12/1/2038 134,020 100,000 IL Health Facs. Auth. Rev. Ref. (Sinai Health) 5.00 8/15/2024 92,856 100,000 Manhattan Spl. Tax. (Groebe Farm-Stonegate) 5.75 3/1/2022 60,387 200,000 Markham IL G.O. 4.75 2/1/2017 168,282 100,000 Southwestern IL Dev. Auth. Tax. Alloc. Rev. Ref. 7.00 10/1/2022 74,513 500,000 Winnebago & Stephenson Co. (Sch. Dist. 321) 5.25 1/1/2019 282,545 ---------------- 2,075,773 ---------------- IOWA (1.7%) 290,000 Altoona Urban Renewal Tax Increment Rev. 6.00 6/1/2028 229,457 150,000 IA Fin. Auth. Sr. Hsg. Rev. (Wedum Walnut Ridge) 5.00 12/1/2014 120,022 100,000 IA Fin. Auth. Sr. Living (Deerfield Ret. Cmnty.) 5.00 11/15/2021 59,908 200,000 IA Fin. Auth. Sr. Living (Deerfield Ret. Cmnty.) 5.50 11/15/2027 115,296 ---------------- 524,683 ---------------- INDIANA (2.3%) 200,000 IN Hlth. & Educ. Fac. Fing. Auth. Hosp. Rev. 5.50 3/1/2022 158,620 200,000 Paoli Bldg. Corp. (First Mtg.) 5.00 1/15/2032 176,972 150,000 St. Joseph Co. Econ. Dev. Rev. (Holy Cross Vlg.) 5.70 5/15/2028 90,869 150,000 St. Joseph Co. Hosp. Auth. Rev. (Madison Ctr.) 5.80 2/15/2024 118,863 250,000 St. Joseph Co. Hosp. Auth. Health. Facs. Rev. 5.25 2/15/2028 169,765 ---------------- 715,089 ----------------
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- KENTUCKY (1.9%) 140,000 Jefferson Co. Mtg. Rev. (Christian Church Homes) 6.13 11/15/2013 132,674 250,000 Louisville/Jefferson Co. Health Fac. (Jewish Hosp.) 6.00 2/1/2022 228,585 300,000 Louisville/Jefferson Co. (Bellarmine Univ.) 6.00 5/1/2033 233,448 ---------------- 594,707 ---------------- LOUISIANA (1.1%) 100,000 Caddo Parish Sew. Dist. No. 7 Rev. Ref. 6.60 11/1/2024 101,425 215,000 LA Loc. Gov. Rev. (Cap. Pjs. & Equip. Acquisition) 6.55 9/1/2025 160,553 125,000 St. John Baptist Parish Rev. (Marathon Oil) 5.13 6/1/2037 73,758 ---------------- 335,736 ---------------- MARYLAND (0.6%) 250,000 Howard Co. Retirement Cmnty. Rev. (Vantage House) 5.25 4/1/2027 147,405 60,000 MD State Hlth. & Hgr. Educ. Facs. (King Farm Pres) 5.00 1/1/2017 44,147 ---------------- 191,552 ---------------- MASSACHUSETTS (1.9%) 300,000 MA St. Hlth. & Educ. Rev. (Quincy Med. Ctr.) 5.13 1/15/2012 277,107 170,000 MA St. Hlth. & Educ. Rev. (Nichols College) 6.00 10/1/2017 148,578 100,000 MA State Hlth. & Educ. (Valley Regl. Hlth. Sys.) 5.75 7/1/2018 94,037 75,000 Pioneer Valley Regl. Sch. Dist. G.O. 6.30 6/1/2019 77,449 ---------------- 597,171 ---------------- MICHIGAN (4.5%) 350,000 Advanced Technology Academy Pub. Sch. Rev. 6.00 11/1/2028 248,412 200,000 Bishop Intl Airport Auth. Rev. 5.13 12/1/2017 170,432 150,000 Detroit G.O. 5.25 4/1/2020 131,241 250,000 Grand Traverse Academy Pub. Sch. Acad. Rev. Ref. 5.00 11/1/2022 171,582 50,000 Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) 5.25 11/15/2014 43,764 100,000 Kentwood Econ. Ltd. Oblig. Rev. (Holland Home) 5.38 11/15/2036 57,433 155,000 MI Educ. Facs. Oblig. Rev. Ref. (Bradford) 6.00 9/1/2016 137,549 250,000 MI St. Bldg. Auth. Rev. 5.98 10/15/2021 111,587 40,000 MI St. Hosp. Rev. Ref. (Detroit Medical) 5.25 8/15/2027 22,714 150,000 MI St. Strategic Fd. Rev. Ref. (Detroit Edison) 5.45 9/1/2029 136,168 250,000 MI Tob. Settlement Fin. Auth. Sr. Rev. 5.13 6/1/2022 175,380 ---------------- 1,406,262 ---------------- MINNESOTA (2.5%) 100,000 Cloquet Hsg. Fac. Rev. Ref. (HADC Cloquet LLC) 5.50 8/1/2025 62,425 100,000 Columbia Heights Econ. Dev. Rev. (Huset Park) 5.00 2/15/2017 75,566 80,000 St. Cloud Hsg. & Redev. MF Rev. (Germain Towers) 5.90 9/1/2020 58,090 200,000 St. Paul Hsg. & Redev. Auth. MF (Marian Ctr.) 5.05 11/1/2017 148,722 165,000 St. Paul Hsg. & Redev. Rev. (Cmnty. Peace Acad.) 5.00 12/1/2018 130,969 150,000 St. Paul Hsg. & Redev. Auth. Rev. (US Bank Ops.) 6.50 8/1/2022 111,522 375,000 St. Paul Port Auth. Lse. Rev. (Regions Hosp. Pkg.) 5.00 8/1/2036 196,890 ---------------- 784,184 ---------------- MISSOURI (2.5%) 300,000 Independence 39th St. Transn. Dist. Rev. 6.88 9/1/2032 221,361 140,000 Joplin Indl. Dev. Auth. Rev. Ref. (Christian) 5.50 5/15/2017 105,134 100,000 Lakeside 370 Levee Dist. Spl. Tax 7.00 4/1/2028 76,710 250,000 MO Dev. Fin. Brd. Rev. (Arnold-Rd Infrastructure) 5.00 11/1/2027 213,695 150,000 St. Louis Co. Indl. Rev. (St. Andrews) 5.38 12/1/2027 145,067 ---------------- 761,967 ---------------- NEBRASKA (1.3%) 500,000 Madison Co. Hosp. Auth. No. 1 (Faith Regl. Hlth.) 5.50 7/1/2021 397,985 ---------------- NEVADA (3.1%) 215,000 Clark Co. Impt. Dist. (128 Summerlin) 5.00 2/1/2020 118,770 250,000 Clark Co. Poll. Ctr. Rev. Ref. (Nev. Pwr. Co.) 5.30 10/1/2011 224,480 250,000 Henderson Rev. (Catholic Hlth. Care West) 5.63 7/1/2024 208,870 250,000 Sparks Redev. Agy. Tax Increment Rev. (Area No. 2) 6.40 6/1/2020 189,625 300,000 Sparks Tourism Impt. Dist. No. 1 Sr. Sales Tax. 6.50 6/15/2020 229,653 ---------------- 971,398 ---------------- NEW HAMPSHIRE (0.2%) 300,000 Manchester Hsg. & Redev. Auth. Rev. 6.91 1/1/2027 70,371 ---------------- NEW JERSEY (0.6%) 200,000 NJ Hlth. Care. Rev. (St. Josephs Hlth. Care Sys.) 5.75 7/1/2015 172,960 ----------------
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- NEW MEXICO (1.3%) 270,000 Farmington Poll. Ctr. Rev. Ref. (San Juan) 6.30 12/1/2016 232,130 250,000 NM State Hosp. Equip. Rev. Ref. (Rehoboth) 5.00 8/15/2017 181,775 ---------------- 413,905 ---------------- NEW YORK (1.4%) 100,000 Nassau Co. Indl. Rev. (Amsterdam at Harborside) 5.88 1/1/2018 79,855 250,000 NY Dorm Auth. Rev. (Frances Schervier Home) 5.50 7/1/2027 203,065 200,000 Seneca Nations Indians Cap. Impt. Auth. 5.00 12/1/2023 112,782 35,000 Tobacco Settlement Fin. Corp. Rev. 5.00 6/1/2011 35,009 ---------------- 430,711 ---------------- NORTH CAROLINA (1.1%) 100,000 Buncome Co. Proj. (Woodfin Downtown Corridor) 6.75 8/1/2024 77,622 250,000 NC Med. Care. Cmmn. Rev. (Arc Projects) 5.80 10/1/2034 167,392 200,000 NC Med. Care Cmnty. Retirement Facs. (Brookwood) 5.25 1/1/2032 106,624 ---------------- 351,638 ---------------- NORTH DAKOTA (1.0%) 103,851 City of Washburn (Bismarck State College Fdtn.) 5.01 4/1/2032 99,511 250,000 Grand Forks Healthcare Sys. Rev. (Altru Health) 5.63 8/15/2027 205,945 ---------------- 305,456 ---------------- OHIO (5.5%) 250,000 Akron Bath Copley Hosp. Rev. (Summa Hlth.) 5.25 11/15/2031 176,120 100,000 Buckeye OH Tob. Settlement Asset-Backed Sr. Rev. 5.13 6/1/2024 66,460 250,000 Cleveland-Cuyahoga Co. Rev. (St. Clarence) 6.00 5/1/2021 169,582 143,500 Cuyahoga Co. Hsg. Mtg. Rev. (R. H. Myers Apts.) 5.70 3/20/2042 130,271 350,000 Erie Co. Hosp. Facs. Rev. (Firelands Regl. Med. Ctr.) 5.63 8/15/2032 270,231 300,000 Greene Co. Impt. Rev. Notes (Greene Town Ctr.) 6.00 3/5/2009 299,340 205,000 Hamilton Co. Healthcare Rev. Ref. (Life Enriching) 5.00 1/1/2027 133,637 185,000 Marion Co. Hlth. Care. Rev. Ref (UTD Church Homes) 6.38 11/15/2010 181,975 150,000 Ross Co. Hosp. Rev. Ref. (Adena Hlth. Sys.) 5.75 12/1/2028 125,366 250,000 Toledo-Lucas Co. Spl. Assmt. Rev. (Crocker Park) 5.38 12/1/2035 169,780 ---------------- 1,722,762 ---------------- OKLAHOMA (0.7%) 195,000 Atoka Co. Hlth. Care Rev. (Atoka Mem. Hosp) 5.88 10/1/2018 140,010 100,000 Grady Co. Indl. Auth. Lease Rev. 6.00 11/1/2029 80,551 ---------------- 220,561 ---------------- OREGON (1.3%) 250,000 Langston Econ. Dev. Rev. (Langston Univ./LDF) 5.00 5/1/2035 134,957 100,000 Oregon St. Hlth. Hsg. Educ. & Cultural Facs. Rev. 8.00 11/15/2026 84,495 300,000 Western Generation Agy. Rev. (Wauna Cogeneration) 5.00 1/1/2021 199,725 ---------------- 419,177 ---------------- PENNSYLVANIA (2.6%) 210,000 Allegheny Co. Higher Educ. Rev. (Thiel College) 5.38 11/15/2019 160,301 350,000 Cambridge Area Jt. Auth. Gtd. Swr. Rev. 5.63 12/1/2028 295,022 45,000 Grove City Area Rev. (United Cmnty Hosp.) 5.25 7/1/2012 42,859 250,000 Lehigh Co. Gen. Purpose Rev. (St. Luke's Hosp) 2.46 8/15/2042 77,500 100,000 Lancaster Co. Hosp. Auth. Rev. (Brethren Vlg.) 5.20 7/1/2012 93,179 60,000 Montgomery Co. Indl. Dev. Auth. (Whitemarsh) 6.00 2/1/2021 41,810 100,000 Quakertown Gen. Auth. Hlth. Rev. (Lifequest) 6.05 7/20/2024 94,595 ---------------- 805,266 ---------------- RHODE ISLAND (0.8%) 250,000 RI Hlth. & Educ. Bldg. Ref. Ref. (Univ. of RI) 6.50 9/15/2028 242,683 ---------------- SOUTH CAROLINA (2.0%) 395,000 Laurens Co. Sch. Dist. No. 55 Installment Rev. 5.25 12/1/2030 275,149 150,000 SC Educ. Facs. Auth. Rev. (Southern Wesleyan Univ.) 5.00 3/1/2020 111,978 150,000 SC Jobs EDA Rev. Ref. & Impt. (Hampton Med.) 4.75 11/1/2012 135,881 100,000 SC Jobs EDA Rev. Ref. & Impt. (Hampton Med.) 4.75 11/1/2013 87,736 ---------------- 610,744 ---------------- TENNESSEE (0.4%) 200,000 Blount Co. Hlth. & Educ. Facs. (Asbury, Inc.) 5.13 4/1/2023 128,708 ---------------- TEXAS (8.8%) 300,000 Austin Convention Enterprises Rev. Ref. 6.00 1/1/2010 291,654 150,000 Austin Convention Enterprises Rev. Ref. 5.25 1/1/2024 106,803 95,000 Bexar Co. Hsg. Rev. Ref. (Nob Hill Apts.) 5.50 6/1/2011 88,144 150,000 Bexar Co. Hsg. Corp. Rev. (Dymaxion & Marbach) 6.10 8/1/2030 103,749
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- 100,000 Bexar Co. Hsg. Fin. Corp. Rev. (American Oppty.) 5.80 1/1/2031 67,943 60,000 Harris Co. Hsg. Rev. Sr. Lien (Windsor Hsg. Fdn.) 6.30 6/1/2025 60,201 100,000 Hopkins Co. Hosp. Dist. Rev. 5.75 2/15/2028 70,305 143,078 Galveston Co. Muni. Util. Dist. No. 52 6.25 8/12/2009 141,516 250,000 Lewisville Combination Contract Impt. Rev. 6.75 10/1/2032 154,817 100,000 Kerrville Hlth. Facs. Rev. (Sid Peterson) 5.45 8/15/2035 65,912 250,000 Midlothian Dev. Auth. Tax Alloc. Rev. Ref. 5.00 11/15/2016 222,727 150,000 North TX Twy. Toll Rev. Ref. Second Tier 6.13 1/1/2031 133,536 200,000 North TX Twy. Rev. Ref. First Tier 5.63 1/1/2033 170,920 500,000 Port Corpus Christi Auth. Nueces Co. (Union Pacific) 5.65 12/1/2022 346,910 100,000 Richardson Rev. Ref. & Impt. (Baylor/Richardson) 5.63 12/1/2028 68,293 50,000 Tarrant Co. Cultural Educ. Rev. (C.C. Young) 5.00 2/15/2013 45,173 150,000 TX Pub. Fin. Auth. Rev. (Uplift Educ.) 5.35 12/1/2017 124,067 250,000 TX Pub. Fin. Auth. Rev. (Idea Pub. School) 5.00 8/15/2030 132,955 250,000 Travis Co. Hlth. Dev. Corp. (Querencia Barton Cr.) 5.10 11/15/2015 203,223 250,000 Tyler Hlth. Facs. Dev. Corp. (Mother Frances) 5.00 7/1/2033 139,445 ---------------- 2,738,293 ---------------- UTAH (0.8%) 200,000 Provo Charter Sch. Rev. (Freedom Academy Fdn.) 5.50 6/15/2037 118,370 200,000 UT Assoc. Muni. Pwr. Sys. Rev. 5.00 5/1/2027 132,322 ---------------- 250,692 ---------------- WASHINGTON (1.5%) 200,000 Kalispel Tribe Indians Priority Dist. Rev. 6.20 1/1/2016 171,090 100,000 Quinault Indian Nation Rev. Ref. & Impt. (Beach) 5.80 12/1/2015 69,980 150,000 WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) 5.25 1/1/2017 116,924 100,000 WA St. Hsg. Fin. Commn. Rev. (Skyline First Hill) 5.25 1/1/2013 89,821 ---------------- 447,815 ---------------- VIRGINIA (1.5%) 250,000 Fairfax Co. EDA Rev. (Goodwin House) 5.00 10/1/2022 172,277 250,000 Virginia Hsg. Dev. Auth. Commonwealth Mtg. Rev. 6.00 7/1/2025 252,340 100,000 VA Tobacco Settlement Fin. Corp. Senior Rev. 5.00 6/1/2047 49,621 ---------------- 474,238 ---------------- WISCONSIN (2.7%) 110,000 Milwaukee Redev. Auth. Rev. (Academy of Learning) 5.50 8/1/2022 78,654 100,000 WI Hlth. & Educ. Facs. Auth. (Beaver Dam Hosp.) 6.00 8/15/2019 73,751 250,000 WI Hlth. & Educ Facs. Rev. Ref. (Three Pillars) 5.60 8/15/2023 209,435 100,000 WI Hlth. & Educ Facs. Rev. Ref. (Three Pillars) 5.75 8/15/2026 81,519 300,000 WI Hlth. & Educ Facs. Rev. (Sinai Samaritan Med. Ctr.) 5.88 8/15/2026 258,096 100,000 WI Hlth. & Educ. Auth Rev. (Beaver Dam Hosp.) 6.50 8/15/2024 67,811 100,000 WI Hlth. & Educ. Auth Rev. (Beaver Dam Hosp.) 6.75 8/15/2034 63,140 ---------------- 832,406 ---------------- Total municipal bonds (cost: $38,937,504) 30,013,278 ---------------- CLOSED-END MUTUAL FUNDS (2.2%) (2) 25,000 BlackRock Long-Term Muni Advantage Trust (BTA) 170,000 5,000 BlackRock MuniHoldings FL. Insured Fund (MFL) 45,750 10,000 DWS Strategic Muni Income Trust (KSM) 79,900 40,000 MFS High Income Muni trust (CXE) 114,400 20,000 Morgan Stanley Muni Income Opp. Trust (OIA) 90,400 10,000 PIMCO California Muni. Income Fund II (PCK) 61,700 10,000 Van Kampen Advantage Muni Income Trust II (VKI) 74,700 5,000 Van Kampen Trust Invsmt. Grade Muni Fund (VGM) 44,200 ---------------- Total closed-end mutual funds (cost: $1,084,907) 681,050 ---------------- SHORT-TERM SECURITIES (0.4%) (2) 138,594 Dreyfus Tax-Exempt Cash Management Fund, 1.44% 138,594 ---------------- Total Short-Term Securities (cost: $138,594) Total investments in securities (cost: $40,161,005) (3) $ 30,832,922 ================
================================================================================================================================== SIT HIGH INCOME MUNI BOND FUND PORTFOLIO OF INVESTMENTS - DECEMBER 31, 2008 (UNAUDITED) ================================================================================================================================== - ---------------------------------------------------------------------------------------------------------------------------------- COUPON MATURITY Quantity/Par ($) NAME OF ISSUER RATE (%) DATE MARKET VALUE (1) - ---------------------------------------------------------------------------------------------------------------------------------- Other Assets and Liabilities, Net (+0.79%) 245,181 ---------------- Total Net Assets $ 31,078,103 ================ ---------------- Aggregate Cost 40,161,005 ---------------- Gross Unrealized Appreciation 36,856 Gross Unrealized Depreciation (9,364,940) ---------------- Net Unrealized Appreciation(Depreciation) (9,328,084) ================
Notes To Schedule of Investments: - -------------------------------- (1) Securities Valuation: The Fund adopted Financial Accounting Standards Board ("FASB") Statement of Accounting Standards No. 157 ("FAS 157"). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund's investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below. LEVEL 1 - quoted prices in active markets for identical investments LEVEL 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) LEVEL 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) Securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund's Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value. The following is a summary of the inputs used in valuing the Fund's assets carried at fair value: INVESTMENTS IN SECURITIES VALUATION INPUTS AT VALUE ------------------------- Level 1 - Quoted Prices $ 681,050 Level 2 - Other Significant Observable Inputs $30,151,872 Level 3 - Significant Unobservable Inputs -- - ------------------------------------------------------------------------------ Total $30,832,922 ============================================================================== (2) Percentage figures indicate percentage of total net assets. (3) Presently non-income producing securities. ITEM 2. CONTROLS AND PROCEDURES. (a) The principal financial officer and principal executive officer have concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) of Sit Mutual Funds II, Inc. (the "Registrant") provide reasonable assurances that material information relating to the Registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. (b) There was no change in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 3. EXHIBITS Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Sit Mutual Funds II, Inc. By: /s/Paul E. Rasmussen ----------------------------- Paul Rasmussen Vice President and Treasurer Date: January 22, 2009 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: /s/Paul E. Rasmussen ----------------------------- Paul Rasmussen Vice President and Treasurer Date: January 22, 2009 By: /s/Roger J. Sit ----------------------------- Roger J. Sit President Date: January 22, 2009 EX-99.CERT 2 sit-mfii090279_ex99cert.txt CERTIFICATIONS OF VP/CHAIR PURSUANT TO SECTION302 EXHIBIT EX-99.CERT ------------------ I, Paul E. Rasmussen, certify that: 1. I have reviewed this report on Form N-Q of Sit Mutual Funds II, Inc; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and c. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 22, 2009 /s/Paul E. Rasmussen - ---------------------------- Paul E. Rasmussen Vice President and Treasurer I, Roger J. Sit, certify that: 1. I have reviewed this report on Form N-Q of Sit Mutual Funds II, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and c. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 22, 2009 /s/Roger J. Sit - ---------------------------- Roger J. Sit President -----END PRIVACY-ENHANCED MESSAGE-----