Sit Small Cap Dividend Growth Fund Class S (SDFSX)

Overview

The fund is a financial vehicle focused on capital growth by concentrating its investments in small cap, dividend-paying common stocks. By adhering to a strategy that allocates at least 80% of its net assets in such securities, it aims to leverage the growth potential of small cap companies that demonstrate a commitment to returning value to shareholders through dividends. Additionally, it diversifies its portfolio by investing in a mix of preferred stocks, convertible bonds, U.S. Treasury securities, and closed-end investment companies. The fund also maintains an international perspective by allowing up to 20% of its net assets to be invested in securities of issuers outside of the U.S., thereby offering investors exposure to global market opportunities.

Products and Services

• Small Cap Dividend-Paying Common Stocks

  This product forms the core of the fund's investment strategy, encompassing at least 80% of its net assets. It targets small cap companies that pay dividends, which can lead to potential growth and income for investors looking for exposure to this segment of the market.

• Preferred Stocks

  As part of its diversified investment approach, the fund may allocate assets to preferred stocks. Preferred stocks offer a fixed dividend, which can provide a steady income stream and potential for price appreciation, contributing to the overall performance of the fund's portfolio.

• Convertible Bonds

  Convertible bonds are included in the fund's investment universe, offering a hybrid option for investors seeking the security of fixed income with the potential for conversion into equity if certain conditions are met. This can enhance the fund's growth prospects without significantly increasing risk.

• U.S. Treasury Securities

  The fund invests in a range of U.S. Treasury securities, including Treasury bills, notes, and bonds. These investments provide a risk-averse component to the fund's strategy, offering safety and liquidity, as well as a predictable income through interest payments.

• Closed-End Investment Companies

  Investments in closed-end investment companies allow the fund to potentially capitalize on the management expertise and diversified portfolios these companies offer. This can add value to the fund's strategy by including a variety of asset classes and investment approaches within its portfolio.

• International Securities

  Up to 20% of the fund's net assets may be allocated to securities of issuers domiciled outside the U.S., providing investors with international exposure. This includes a wide range of markets and sectors, offering potential for enhanced returns and diversification benefits.