Sit Mutual Funds

    198

    Fund Complex: Sit Mutual Funds

    Management Company: Sit Investment Associates, Inc.

    Funds Affected: Sit ESG Growth Fund

    Sustainable Investing Strategy: ESG Integration

    Summary:

    The fund’s stock selection process also takes into consideration environmental, social and governance (ESG) screens from third-party providers that rank companies within an industry or sector based on several ESG characteristics, or the adviser’s own analysis of a company’s ESG practices if such ranking is not available or the adviser believes the available ranking is not accurate. The ESG screens utilize comparative weighted rankings of company ESG issues by sectors based on company and industry-specific factors, which assess a company’s sustainability policies, management systems and performance. Generally, the adviser deems a company to have strong ESG practices when its industry ranking is in the top 50th percentile. ESG factors often require a subjective analysis and are subject to change. Environmental factors may include, for example, human capital concerns, product safety, workplace diversity and employee welfare. Governance factors may include, for example, corporate governance concerns, business ethics, sustainability policy and public policy concerns.