Sit Tax-Free Income Fund S Class (SNTIX)

Overview

The fund primarily focuses on generating returns through investments in small cap dividend-paying common stocks, aiming to allocate at least 80% of its net assets into these securities. It adopts a diversified investment strategy that not only emphasizes small cap equities but also includes a mix of preferred stocks, convertible bonds, and U.S. Treasury securities. Furthermore, the fund demonstrates an international investment perspective by allowing up to 20% of its net assets to be invested in securities of issuers based outside the United States. This strategic allocation aims to balance risk and reward by engaging in a variety of financial instruments and geographic markets.

Products and Services

• Small Cap Dividend-Paying Common Stocks

  An investment that focuses on companies with relatively small market capitalization that offer dividends. This is the fund's primary investment, making up at least 80% of its net assets. The focus on dividend-paying stocks aims to provide investors with a potential source of income in addition to capital appreciation.

• Preferred Stocks

  These are stocks that generally offer dividends before any dividends are given to common stockholders and may have priority over common stock in the event of a liquidation. The fund invests a portion of its assets in preferred stocks to potentially enhance its income level and mitigate risk.

• Convertible Bonds

  Bonds that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder. This allows the fund to participate in the equity upside of issuing companies while also receiving regular interest payments.

• U.S. Treasury Securities

  Includes Treasury bills, notes, and bonds, which are debt obligations issued by the U.S. government. These investments are considered low-risk and add a stable income source and safety to the fund's portfolio.

• Closed-End Investment Companies

  The fund may allocate part of its assets into closed-end investment companies, which are pooled investment funds with a fixed number of shares, trading on an exchange. This adds another layer of diversification, potentially enhancing returns through professional management and varied investment strategies.

• International Securities

  Up to 20% of the fund's net assets may be invested in securities of issuers domiciled outside the U.S., allowing investors exposure to international markets and the opportunity for geographical diversification and potential growth in emerging and established markets outside the domestic sphere.