UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-04995

Sit U.S. Government Securities Fund, Inc.

(Exact name of Registrant as specified in charter)

3300 IDS Center

80 South Eighth Street

Minneapolis, MN 55402

(Address of principal executive offices)

Paul E. Rasmussen, VP

Sit Mutual Funds

3300 IDS Center

80 South Eighth 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, 2026

Date of reporting period: March 31, 2026

Item 1:

Reports to Stockholders.

Class S - SNGVX

Sit U.S. Government Securities Fund

Annual Shareholder Report

March 31, 2026

Fund Overview

This annual shareholder report contains important information about Sit U.S. Government Securities Fund for the period of April 1, 2025 to March 31, 2026. You can find additional information about the Fund at www.sitfunds.com/documents. You can also request this information by contacting us at 1-800-332-5580.

What were the Fund’s costs for the last year?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit U.S. Government Securities Fund - Class S	$82	0.80%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2026, the Sit U.S. Government Securities Fund - Class S returned +4.16%, outperforming the Bloomberg Intermediate Government Bond Index's return of +3.98%. The Federal Reserve reduced short-term interest rates by 0.75%, which caused the yield curve to steepen. The Fund benefited from the consistent relatively high level of income provided by its holdings in higher coupon government agency mortgages. The Fund reduces interest rate risk by using options on Treasury securities. The use of options was effective in providing stability to the Fund’s net asset value but detracted from overall performance. The Fund continued to experience relatively stable prepayment rates as the mortgage holdings are generally well seasoned and have been through many refinancing cycles.

How did the Fund perform over the last 10 years?

Total Return Based on $10,000 Investment

Table Summary
	Sit U.S. Government Securities Fund - Class S	Bloomberg U.S. Aggregate Bond Index	Bloomberg Intermediate Government Bond Index
3/16	$10,000	$10,000	$10,000
3/17	10,002	10,044	9,933
3/18	10,078	10,165	9,919
3/19	10,411	10,620	10,295
3/20	10,958	11,569	11,214
3/21	11,006	11,651	11,079
3/22	10,769	11,168	10,618
3/23	10,566	10,633	10,456
3/24	10,740	10,814	10,628
3/25	11,317	11,342	11,197
3/26	11,787	11,835	11,642

The Fund continues to use the Bloomberg Intermediate Government Bond Index as an additional benchmark.

The line graph above shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years (or since inception if shorter). The graph above and table below are total returns, which assume the reinvestment of dividends and capital gains, if any. Neither the Fund’s returns nor the index returns reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. The Fund’s past performance is not a good predictor of the Fund’s future performance. Updated performance information is available at www.sitfunds.com/documents.

Average Annual Total Returns (as of 03/31/26)

Table Summary
	1 Year	5 Years	10 Years
Sit U.S. Government Securities Fund - Class S	4.16%	1.38%	1.66%
Bloomberg U.S. Aggregate Bond Index	4.35%	0.31%	1.70%
Bloomberg Intermediate Government Bond Index	3.98%	1.00%	1.53%

What did the Fund invest in?

The Fund exclusively invested in U.S. government securities, focusing on high current income relative to market yields. The tables reflect the investment makeup of the Fund as of March 31, 2026. Portfolio holdings are subject to change.

Fund Statistics (as of 03/31/26)

Table Summary
Total Net Assets	$196,960,227
# of Portfolio Holdings	159
Portfolio Turnover Rate	12.51%
Investment Advisory Fees Paid	$408,661
Average Maturity	22.2 Years
Effective Duration^{Footnote Reference1}	3.5 Years

Footnote	Description
Footnote¹	Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Footnote

Description

Footnote¹

Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Estimated Average Life

Table Summary
0-1 Year	1.1%
1-5 Years	92.2
5-10 Years	5.5
10-20 Years	1.2
Total	100.0%

Portfolio Composition (% of Net Assets)

Table Summary
Collateralized Mortgage Obligations	73.9%
Federal National Mortgage Association	10.4
Federal Home Loan Mortgage Corporation	6.6
U.S. Treasury / Federal Agency Securities	4.1
Government National Mortgage Association	3.4
Asset-Backed Securities	0.5
Cash & Other Net Assets	1.1
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2026.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information.

Householding

The SEC permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. The Sit Funds, or your financial intermediary, may household the mailing of your documents indefinitely unless you instruct the Sit Funds, or your financial intermediary, otherwise. If you would prefer that your Sit Fund documents not be householded, please contact the Sit Funds at 1-800-332-5580, or contact your financial intermediary. Your instructions that householding not apply to delivery Fund documents will typically be effective within 30 days of receipt by the Fund or your financial intermediary.

Class S - SNGVX

Sit U.S. Government Securities Fund

Annual Shareholder Report

March 31, 2026

Class Y - SNGYX

Sit U.S. Government Securities Fund

Annual Shareholder Report

March 31, 2026

Fund Overview

What were the Fund’s costs for the last year?

(based on a hypothetical $10,000 investment)

Table Summary
Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment
Sit U.S. Government Securities Fund - Class Y	$56	0.55%

How did the Fund perform in the past 12 months and what affected its performance?

For the 12-month period ended March 31, 2026, the Sit U.S. Government Securities Fund - Class Y returned +4.42%, outperforming the Bloomberg Intermediate Government Bond Index's return of +3.98%. The Federal Reserve reduced short-term interest rates by 0.75%, which caused the yield curve to steepen. The Fund benefited from the consistent relatively high level of income provided by its holdings in higher coupon government agency mortgages. The Fund reduces interest rate risk by using options on Treasury securities. The use of options was effective in providing stability to the Fund’s net asset value but detracted from overall performance. The Fund continued to experience relatively stable prepayment rates as the mortgage holdings are generally well seasoned and have been through many refinancing cycles.

How did the Fund perform over the last 10 years?

Total Return Based on $10,000 Investment

Table Summary
	Sit U.S. Government Securities Fund - Class Y	Bloomberg U.S. Aggregate Bond Index	Bloomberg Intermediate Government Bond Index
1/20	10,101	10,192	10,141
3/20	10,320	10,315	10,518
3/21	10,395	10,388	10,391
3/22	10,196	9,957	9,959
3/23	10,025	9,481	9,808
3/24	10,216	9,641	9,969
3/25	10,783	10,112	10,502
3/26	11,260	10,552	10,920

The Fund continues to use the Bloomberg Intermediate Government Bond Index as an additional benchmark.

Average Annual Total Returns (as of 03/31/26)

Table Summary
	1 Year	5 Years	Since Inception 1/1/2020
Sit U.S. Government Securities Fund - Class Y	4.42%	1.61%	1.92%
Bloomberg U.S. Aggregate Bond Index	4.35%	0.31%	0.86%
Bloomberg Intermediate Government Bond Index	3.98%	1.00%	1.42%

What did the Fund invest in?

Fund Statistics (as of 03/31/26)

Table Summary
Total Net Assets	$196,960,227
# of Portfolio Holdings	159
Portfolio Turnover Rate	12.51%
Investment Advisory Fees Paid	$408,661
Average Maturity	22.2 Years
Effective Duration^{Footnote Reference1}	3.5 Years

Footnote	Description
Footnote¹	Duration is a measure of estimated price sensitivity relative to changes in interest rates. Portfolios with longer durations are typically more sensitive to changes in interest rates. For example, if interest rates rise by 1%, the fair value of a security with an effective duration of 5 years would decrease by 5%, with all other factors being constant. The correlation between duration and price sensitivity is greater for securities rated investment-grade than it is for securities rated below investment-grade. Duration estimates are based on assumptions by Sit Investment Associates, Inc. (the "Adviser") and are subject to a number of limitations. Effective duration is calculated based on historical price changes of securities held by the Fund, and therefore is a more accurate estimate of price sensitivity provided interest rates remain within their historical range.

Footnote

Description

Footnote¹

Estimated Average Life

Table Summary
0-1 Year	1.1%
1-5 Years	92.2
5-10 Years	5.5
10-20 Years	1.2
Total	100.0%

Portfolio Composition (% of Net Assets)

Table Summary
Collateralized Mortgage Obligations	73.9%
Federal National Mortgage Association	10.4
Federal Home Loan Mortgage Corporation	6.6
U.S. Treasury / Federal Agency Securities	4.1
Government National Mortgage Association	3.4
Asset-Backed Securities	0.5
Cash & Other Net Assets	1.1
Total	100.0%

Material Fund Changes

There were no material changes to the Fund during the 12-month period ended March 31, 2026.

Additional Information

Additional Information is available on the Fund’s website at www.sitfunds.com/documents, including its prospectus, financial information, holdings, and proxy voting information.

Householding

Class Y - SNGYX

Sit U.S. Government Securities Fund

Annual Shareholder Report

March 31, 2026

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit U.S. Government Securities Fund


Principal Amount ($)	Coupon Rate (%)	Maturity Date		Fair Value ($)

Mortgage Pass-Through Securities - 20.4%

Federal Home Loan Mortgage Corporation - 6.6%
201,422	2.00		8/1/41		175,734
889,491	4.50		7/1/52		863,578
2,119,453	4.50		2/1/55		2,046,343
283,582	5.00		5/1/42		285,723
87,248	5.00		12/1/48		87,885
376,930	5.50		9/1/52		382,732
39,028	5.82		10/1/37		40,405
2,354,249	6.00		11/1/38		2,428,755
544,928	6.00		2/1/54		548,053
1,107,907	6.50		11/1/53		1,146,254
42,226	6.88		2/17/31		43,095
1,785,416	7.00		10/1/37		1,879,899
1,034,503	7.00		10/1/38		1,093,252
837,293	7.00		3/1/39		881,220
1,080,299	7.00		11/1/53		1,134,597


					13,037,525


Federal National Mortgage Association - 10.4%

131,517	3.50		10/1/34		127,721
2,195,006	4.00		4/1/54		2,070,595
4,099,598	4.50		7/1/52		3,973,410
4,934,199	4.50		9/1/52		4,782,832
4,024,116	4.50		3/1/55		3,885,305
69,278	5.00		4/1/33		69,351
318,172	5.00		11/1/39		321,541
161,475	5.00		6/1/40		163,185
847,560	5.00		7/1/40		856,540
147,762	5.00		7/1/41		149,328
314,419	5.00		2/1/44		318,168
1,427,046	5.00		7/1/52		1,396,035
950,638	5.50		11/1/52		980,720
641,170	5.93		5/1/35		639,449
706,264	6.00		2/1/54		710,314


					20,444,494


Government National Mortgage Association - 3.4%

384,018	5.00		7/20/49		382,716
220,283	5.50		5/20/40		226,703
559,672	5.50		8/20/62		562,412
1,813,383	6.00		12/20/52		1,866,355
1,728,388	6.00		8/20/62		1,755,950
6,842	6.50		12/20/38		6,869
1,762,911	7.00		12/20/52		1,835,495


					6,636,500


Total Mortgage Pass-Through Securities					40,118,519

(cost: $40,108,539)

U.S. Treasury / Federal Agency Securities - 4.1%
U.S. Treasury Bonds:
2,850,000	3.63		2/15/53		2,293,025
U.S. Treasury Notes:
1,000,000	4.00		11/15/35		976,250
2,300,000	4.25		1/31/30		2,329,109
1,800,000	4.25		11/15/34		1,800,563
600,000	4.38		5/15/34		606,680


Total U.S. Treasury / Federal Agency Securities					8,005,627

(cost: $8,334,691)


Principal Amount ($)	Coupon Rate (%)	Maturity Date			Fair Value ($)

Collateralized Mortgage Obligations - 73.9%

Federal Home Loan Mortgage Corporation - 18.0%
1,066,414	4.00		5/15/48			1,005,256
4,838,576	4.50		9/25/53			4,826,700
886,050	4.56		7/25/32	¹		829,752
725,892	5.00		10/25/48			727,416
1,439,676	5.00		2/25/51			1,412,151
1,374,389	5.00		4/25/52			1,377,543
4,639,910	5.00		11/25/50	¹		4,481,507
2,042,697	5.23		5/25/43			1,930,613
1,387,451	5.50		6/25/48			1,399,129
1,071,292	5.50		11/25/50			1,080,026
3,806,322	5.50		6/25/51			3,851,372
258,817	5.75		8/15/35			265,039
279,650	6.00		4/15/30			286,432
748,912	6.00		6/15/37			789,488
761,225	6.00		9/15/42			772,761
2,168,638	6.00		9/25/52			2,246,371
224,971	6.50		6/25/32			224,599
248,181	6.50		8/15/39			263,487
731,510	6.50		2/25/43			769,210
657,938	6.50		10/25/43			669,876
1,252,941	6.50		8/15/45			1,361,530
589,918	7.00		12/15/40			645,735
1,120,423	7.00		3/25/43			1,184,051
1,734,323	7.00		7/25/43			1,820,010
815,567	7.00		3/15/49			865,866
422,080	7.50		9/25/43			435,948


						35,521,868


Federal National Mortgage Association - 17.1%

38,017	4.00		7/25/40			37,881
1,432,900	5.00		7/25/33			1,440,208
2,819,644	5.00		11/25/50			2,748,925
2,876,476	5.00		12/25/50			2,878,262
337,514	5.00		1/25/51			336,638
1,591,258	5.00		3/25/55			1,580,013
943,982	5.25		8/25/49			949,359
322,161	5.36		6/25/42			328,580
449,685	5.50		6/25/40			463,472
976,622	5.50		1/25/49			982,783
1,024,809	5.62		11/25/33			1,023,596
260,331	5.75		8/25/33			262,338
64,512	6.00		11/25/32			66,657
396,772	6.00		9/25/35			412,796
359,561	6.00		10/25/36			371,077
892,872	6.00		11/25/43			908,614
1,398,961	6.00		6/25/44			1,428,010
313,874	6.00		8/25/44			320,208
1,450,000	6.00		10/25/53			1,483,091
1,595,691	6.50		11/25/41			1,617,723
844,212	6.50		7/25/42			876,230
1,485,908	6.50		12/25/43			1,520,987
674,456	6.59		9/25/37	¹		668,575
321,121	6.65		8/25/37	¹		321,806
239,074	6.75		4/25/37			240,755
709,342	7.00		12/25/33			739,106
526,818	7.00		6/19/41	¹		530,564
767,505	7.00		12/25/41			796,442
936,757	7.00		6/25/42	¹		935,779
553,972	7.00		7/25/42			575,592


See accompanying notes to financial statements.

2		FINANCIAL STATEMENTS AND OTHER INFORMATION


Principal Amount ($)	Coupon Rate (%)	Maturity Date			Fair Value ($)

518,555	7.00		2/25/44			530,928
524,119	7.00		4/25/49			556,375
198,580	7.50		10/25/40			199,378
707,513	7.50		11/25/40			708,329
970,256	7.50		7/25/41			985,886
235,202	7.50		1/25/42			247,902
410,953	7.50		5/25/42			435,162
493,382	7.50		2/25/44			500,477
303,561	7.50		5/25/44			326,434
2,037,739	7.50		1/25/48			2,124,872
19,919	8.05		10/25/42	¹		21,446
96,309	8.50		6/25/30			101,913
6,599	18.19		3/25/39	¹		8,020


						33,593,189


Government National Mortgage Association - 38.7%
1,857,707	4.73		5/20/51	¹		1,782,403
1,900,272	4.75		5/20/51	¹		1,818,096
4,136,092	4.77		8/20/51	¹		3,987,994
553,623	5.00		8/20/48			552,751
3,288,690	5.00		1/20/51			3,239,072
5,961,192	5.00		2/20/51			5,856,458
344,435	5.00		6/20/52			343,650
771,616	5.50		12/20/49			773,829
3,086,616	5.50		12/20/50			3,135,148
2,577,720	5.50		1/20/51			2,613,661
1,386,232	5.50		4/20/51			1,419,286
10,597,246	5.50		5/20/51			10,782,488
11,694,209	5.50		6/20/51			11,870,039
13,565,017	5.50		7/20/51			13,739,223
1,453,291	5.50		10/20/51			1,473,685
6,208,433	5.92		2/20/51	¹		6,341,596
207,473	6.00		12/20/35			211,667
199,714	6.00		3/20/48			204,982
1,124,546	6.00		3/20/49			1,140,308
334,310	6.00		5/20/49			342,126
1,661,872	6.50		8/20/48			1,696,181
731,948	6.50		10/20/48			773,798
652,858	6.50		1/20/49			691,161
291,219	6.50		3/20/54			297,532
777,769	7.00		11/20/48			811,987
223,410	7.05		2/20/45	¹		237,461


						76,136,582


Vendee Mortgage Trust - 0.1%
264,492	6.35		7/15/30	¹		269,082


						269,082


Total Collateralized Mortgage Obligations						145,520,721

(cost: $154,758,794)

Asset-Backed Securities - 0.5%

Federal Home Loan Mortgage Corporation - 0.1%
153,734	7.16		7/25/29			155,427


						155,427


Federal National Mortgage Association - 0.4%
2,608	SOFRRATE 30 Day Average + 0.45%, 3.95		11/25/32	¹		2,559
188,918	4.52		9/26/33	¹⁴		185,689
52,358	4.86		10/25/33	¹⁴		53,050


Principal Amount ($)	Coupon Rate (%)	Maturity Date	Fair Value ($)

694,743	5.22	2/25/33¹⁴		700,794


				942,092


Total Asset-Backed Securities				1,097,519

(cost: $1,106,138)

Put Options Purchased ¹⁹ - 0.0%				120,438

(cost: $79,908)


Quantity	Name of Issuer		Fair Value ($)


Short-Term Securities - 0.8%
1,576,049	Fidelity Inv. Money Mkt. Gvt. Fund, 3.53%			1,576,049


(cost: $1,576,049)

Total Investments in Securities - 99.7% (cost: $205,964,119)				196,438,873


Other Assets and Liabilities - 0.3%				521,354


Net Assets - 100.0%				$196,960,227

Variable rate security. Rate disclosed is as of March 31, 2026. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions, or, for mortgage-backed securities, are impacted by the individual mortgages which are paying off over time. These securities do not indicate a reference rate and spread in their descriptions.

14	Step Coupon: A bond that pays a coupon rate that increases on a specified date(s). Rate disclosed is as of March 31, 2026.

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


See accompanying notes to financial statements.

MARCH 31, 2026		3

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit U.S. Government Securities Fund (Continued)

19 Options outstanding as of March 31, 2026 were as follows:

Description

Contracts

Exercise
Price ($)

Expiration
Date

Counterparty

Notional
Amount ($)

Cost/
Premiums ($)

Value ($)

Put Options Purchased - U.S. Treasury Futures:

5-Year

164

108.25

May 2026

StoneX Financial, Inc.

17,753,000

79,908

120,438

A summary of the levels for the Fund’s investments as of March 31, 2026 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


			Investment in Securities


	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)

Mortgage Pass-Through Securities		—		40,118,519		—		40,118,519
U.S. Treasury / Federal Agency Securities		—		8,005,627		—		8,005,627
Collateralized Mortgage Obligations		—		145,520,721		—		145,520,721
Asset-Backed Securities		—		1,097,519		—		1,097,519
Put Options Purchased		120,438		—		—		120,438
Short-Term Securities		1,576,049		—		—		1,576,049

Total:		1,696,487		194,742,386		—		196,438,873

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


See accompanying notes to financial statements.

4		FINANCIAL STATEMENTS AND OTHER INFORMATION

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Quality Income Fund



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Asset-Backed Securities - 5.0%

Agency - 0.2%

FNMA Grantor Trust, Series 2004-T5, Class A11 ¹		265,636		4.85		5/28/35		272,164

Small Business Administration, Series 2006-20D, Class ¹		6,575		5.64		4/1/26		6,575

Small Business Administration, Series 2007-20B, Class ¹		8,409		5.49		2/1/27		8,451


								287,190


Non-Agency - 4.1%

Crown Castle Towers, LLC 4		1,350,000		4.24		7/15/28		1,341,284

RCKT Mortgage Trust, Series 2023-CES3, Class A1A ^{1, 4}		437,709		7.11		11/25/43		441,030

RCKT Mortgage Trust, Series 2024-CES3, Class A1A ^{1, 4}		993,718		6.59		5/25/44		1,003,211

RCKT Mortgage Trust, Series 2024-CES4, Class A1A ^{4, 14}		384,518		6.15		6/25/44		387,163

RCKT Mortgage Trust, Series 2025-CES1, Class A1B ^{4, 14}		984,791		5.70		1/25/45		988,883

RCKT Mortgage Trust, Series 2025-CES3, Class A1A ^{4, 14}		742,823		5.55		3/25/55		746,943

SBA Tower Trust ⁴		525,000		4.83		10/15/29		527,260

Towd Point Mortgage Trust, Series 2023-CES2, Class A1A ^{1, 4}		219,256		7.29		10/25/63		220,547


								5,656,321


State and Local - 0.7%

DTE Electric Securitization Funding II, LLC		831,559		5.97		3/1/32		871,214


								871,214


Total Asset-Backed Securities (cost: $6,734,620)								6,814,725


Collateralized Mortgage Obligations - 44.5%

Agency - 36.9%

FHLMC REMICS, Series 3756, Class PZ		2,082,559		4.00		11/15/40		2,023,419

FHLMC REMICS, Series 4246, Class PT		152,500		6.50		2/15/36		157,772

FHLMC REMICS, Series 5226, Class D		294,766		3.50		12/15/45		285,614

FHLMC REMICS, Series 5252, Class BT		688,457		6.00		9/25/52		713,134

FHLMC REMICS, Series 5280, Class A		810,670		3.50		1/25/50		767,678

FHLMC REMICS, Series 5378, Class DA		2,898,235		5.00		5/25/49		2,900,355

FHLMC REMICS, Series 5391, Class EA		1,012,533		5.50		5/25/49		1,019,285

FHLMC REMICS, Series 5417, Class HA		854,742		5.50		11/25/51		857,722

FHLMC REMICS, Series 5440, Class NG		436,471		5.50		9/25/49		436,256

FHLMC REMICS, Series 5444, Class AB		304,583		5.50		9/25/49		304,009

FHLMC REMICS, Series 5452, Class CB		836,455		5.00		8/25/51		835,423

FHLMC REMICS, Series 5470, Class MA		746,950		5.00		4/25/52		748,665

FHLMC REMICS, Series 5487, Class CA		1,579,071		5.50		12/25/51		1,588,400

FHLMC REMICS, Series 5537, Class EA		890,213		5.00		5/25/52		885,814

FHLMC REMICS, Series 5585, Class M		1,560,419		5.00		10/25/55		1,541,880

FHLMC REMICS, Series 5596, Class CA		1,194,140		5.00		8/25/55		1,186,370

FHLMC REMICS, Series 5627, Class DT		2,419,288		4.50		9/25/53		2,413,350

FHLMC Structured Pass-Through Certificates, Series T-54, Class 2A		1,603,860		6.50		2/25/43		1,686,519

FHLMC Structured Pass-Through Certificates, Series T-60, Class 1A2		648,656		7.00		3/25/44		659,252

FNMA Grantor Trust, Series 2002-T18, Class A4¹		1,774,909		7.50		8/25/42		1,912,892

FNMA REMICS, Series 2002-W1, Class 2A ¹		1,028,771		4.31		2/25/42		1,027,072

FNMA REMICS, Series 2004-W5, Class A1		1,269,545		6.00		2/25/47		1,317,697

FNMA REMICS, Series 2009-24, Class LC ¹		193,228		1.96		4/25/39		170,946

FNMA REMICS, Series 2010-68, Class W ¹		143,003		1.31		7/25/37		124,459

FNMA REMICS, Series 2011-10, Class AC		1,107,497		3.00		2/25/41		1,073,114

FNMA REMICS, Series 2011-146, Class LX		165,995		3.50		10/25/40		165,463

FNMA REMICS, Series 2015-61, Class VB		829,289		3.50		6/25/34		823,800

FNMA REMICS, Series 2018-25, Class AG		708,027		3.50		4/25/47		690,544

FNMA REMICS, Series 2022-42, Class GV		716,677		5.00		7/25/33		713,835

FNMA REMICS, Series 2023-64, Class HA		2,576,394		5.50		9/25/50		2,610,224

FNMA REMICS, Series 2025-100, Class CT		2,318,378		5.00		12/25/55		2,294,482

FNMA REMICS, Series 2025-55, Class AN		1,347,540		5.00		7/25/55		1,341,568

FNMA REMICS, Series 2025-66, Class KA		1,744,389		5.00		8/25/52		1,741,144


See accompanying notes to financial statements.

6		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

FNMA REMICS, Series 2025-74, Class CN		2,293,421		5.00		2/25/53		2,281,712

FNMA REMICS, Series 2025-84, Class A		2,196,579		5.00		2/25/55		2,212,398

FNMA Trust, Series 2004-W9, Class 1A3		595,666		6.05		2/25/44		614,589

FRESB Mortgage Trust, Series 2018-SB45, Class A5H, SOFRRATE 30 Day Average + 0.81% ¹		120,566		4.48		11/25/37		120,003

FRESB Mortgage Trust, Series 2018-SB46, Class A5H, SOFRRATE 30 Day Average + 0.81% ¹		463,843		4.48		12/25/37		461,347

Government National Mortgage Association, Series 2004-11, Class QG		148,891		5.00		2/16/34		148,571

Government National Mortgage Association, Series 2020-149, Class AW		1,354,070		5.50		10/20/50		1,364,380

Government National Mortgage Association, Series 2024-116, Class MB		535,359		6.50		3/20/54		546,965

Government National Mortgage Association, Series 2024-4, Class GK		589,709		5.00		3/20/52		592,265

Government National Mortgage Association, Series 2024-79, Class MC		877,123		5.50		10/20/49		884,984

Government National Mortgage Association, Series 2025-135, Class CD		1,758,611		5.00		4/20/52		1,758,448

Government National Mortgage Association, Series 2025-71, Class AD		1,549,234		5.00		4/20/54		1,547,915

Seasoned Credit Risk Transfer Trust, Series 2019-4, Class M55D		195,384		4.00		2/25/59		183,560

Seasoned Credit Risk Transfer Trust, Series 2022-2, Class M5TU		1,114,352		4.00		4/25/62		1,045,173


								50,780,467


Non-Agency - 7.6%

Chase Home Lending Mortgage Trust, Series 2024-3, Class A4 ^{1, 4}		418,739		6.00		2/25/55		421,026

Chase Home Lending Mortgage Trust, Series 2024-4, Class A6 ^{1, 4}		494,251		6.00		3/25/55		495,618

JP Morgan Mortgage Trust, Series 2021-1, Class A4 ^{1, 4}		431,977		2.50		6/25/51		398,364

JP Morgan Mortgage Trust, Series 2021-14, Class A4 ^{1, 4}		621,477		2.50		5/25/52		556,984

JP Morgan Mortgage Trust, Series 2021-6, Class A4 ^{1, 4}		1,109,222		2.50		10/25/51		1,001,620

JP Morgan Mortgage Trust, Series 2021-7, Class A4 ^{1, 4}		380,526		2.50		11/25/51		343,233

JP Morgan Mortgage Trust, Series 2024-4, Class A4A ^{1, 4}		300,932		6.00		10/25/54		301,836

JP Morgan Mortgage Trust, Series 2025-1, Class A4 ^{1, 4}		969,778		6.00		6/25/55		975,053

New Residential Mortgage Loan Trust, Series 2017-3A, Class A1 ^{1, 4}		146,391		4.00		4/25/57		141,429

New Residential Mortgage Loan Trust, Series 2018-4A, Class A1S, TSFR1M + 0.86% ^{1, 4}		110,105		4.54		1/25/48		108,340

Sequoia Mortgage Trust, Series 2020-4, Class A5 ^{1, 4}		189,539		2.50		11/25/50		175,771

Sequoia Mortgage Trust, Series 2023-4, Class A10 ^{1, 4}		98,775		5.76		11/25/53		98,580

Sequoia Mortgage Trust, Series 2024-9, Class A11 ^{1, 4}		88,505		5.50		10/25/54		88,273

Sequoia Mortgage Trust, Series 2025-1, Class A10 ^{1, 4}		1,403,249		6.00		1/25/55		1,406,851

Sequoia Mortgage Trust, Series 2025-2, Class A4 ^{1, 4}		759,610		6.00		3/25/55		762,284

Sequoia Mortgage Trust, Series 2025-4, Class A11 ^{1, 4}		826,367		5.50		4/25/55		826,904

Sequoia Mortgage Trust, Series 2025-8, Class A5 ^{1, 4}		648,283		5.50		6/25/55		648,612

Sequoia Mortgage Trust, Series 2026-1, Class A5 ^{1, 4}		1,547,950		4.50		2/25/56		1,526,405

Wells Fargo Mortgaged Backed Securities Trust, Series 2020-5, Class A3 ^{1, 4}		166,228		2.50		9/25/50		153,218


								10,430,401


Total Collateralized Mortgage Obligations (cost: $61,342,225)								61,210,868


Corporate Bonds - 10.7%

Associated Banc-Corp.		1,400,000		6.46		8/29/30		1,432,846

CVS Pass-Through Trust ⁴		203,582		5.93		1/10/34		207,490

CVS Pass-Through Trust		327,280		6.94		1/10/30		336,947

CVS Pass-Through Trust Series 2013 ⁴		875,008		4.70		1/10/36		825,780

F&G Global Funding ⁴		1,225,000		5.88		1/16/30		1,240,145

Fifth Third Financial Corp.		1,025,000		5.98		1/30/30		1,057,458

First Citizens BancShares, Inc.		1,200,000		5.23		3/12/31		1,190,113

First Horizon Corp.		650,000		5.51		3/7/31		658,447

FNB Corp.		1,200,000		5.72		12/11/30		1,205,180

Great River Energy ⁴		718,063		6.25		7/1/38		757,157

MSCI, Inc. ⁴		1,250,000		3.88		2/15/31		1,182,279

Pinnacle Financial Partners, Inc.		1,175,000		6.17		11/1/30		1,197,768

Texas Capital Bancshares, Inc.		1,225,000		5.30		2/27/32		1,208,985

Truist Bank (Subordinated)		1,000,000		2.25		3/11/30		908,508
Western Alliance Bancorp (Subordinated)		1,400,000		3.00		6/15/31		1,341,522


Total Corporate Bonds (cost: $14,759,835)								14,750,625


See accompanying notes to financial statements.

MARCH 31, 2026		7

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Quality Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Mortgage Pass-Through Securities - 20.2%

Federal Home Loan Mortgage Corporation - 3.3%

Freddie Mac		1,212,217		2.50		8/1/30		1,174,776

Freddie Mac		6,922		3.00		9/1/27		6,870

Freddie Mac		1,470,417		3.00		3/1/31		1,435,081

Freddie Mac		85		3.50		7/1/26		84

Freddie Mac		1,475		4.00		7/1/26		1,471

Freddie Mac		3,218		4.00		1/1/27		3,212

Freddie Mac		197,204		4.00		4/1/29		197,026

Freddie Mac		66,702		4.00		10/1/31		66,201

Freddie Mac		311,891		4.50		6/1/39		307,158

Freddie Mac		765,260		5.00		8/1/38		771,360

Freddie Mac		759,000		5.00		9/1/54		748,844


								4,712,083


Federal National Mortgage Association - 14.6%

Fannie Mae		81,551		3.00		10/1/27		81,036

Fannie Mae		7,423		3.00		8/1/28		7,358

Fannie Mae		194,204		3.00		5/1/30		190,493

Fannie Mae		86,169		3.00		11/1/31		85,406

Fannie Mae		1,009,864		3.50		4/1/32		990,064

Fannie Mae		269,871		3.50		11/1/38		261,592

Fannie Mae		3,935		4.00		10/1/31		3,901

Fannie Mae		257,094		4.00		10/1/34		255,633

Fannie Mae		577,752		4.00		6/1/38		571,931

Fannie Mae		9,821		4.50		3/1/29		9,799

Fannie Mae		135,712		4.50		7/1/31		136,069

Fannie Mae		1,076,122		4.50		4/1/39		1,078,906

Fannie Mae		1,977,876		4.50		9/1/53		1,913,224

Fannie Mae		1,934,231		4.50		8/1/54		1,867,513

Fannie Mae		2,730,618		5.00		6/1/53		2,705,735

Fannie Mae		371,325		5.50		12/1/35		383,176

Fannie Mae		610,875		5.50		12/1/38		622,946

Fannie Mae		257,061		5.50		8/1/40		265,177

Fannie Mae		428,933		5.50		2/1/42		442,644

Fannie Mae		654,531		5.50		5/1/49		669,085

Fannie Mae		391,377		5.50		9/1/49		402,120

Fannie Mae		1,498,662		5.50		8/1/56		1,543,104

Fannie Mae		1,714,545		6.00		11/1/38		1,767,564

Fannie Mae		958,774		6.00		10/1/53		984,123

Fannie Mae		420,585		6.50		5/1/40		445,652

Fannie Mae		381,035		7.00		1/1/40		399,709

Fannie Mae		428,920		7.00		1/1/40		449,941

Fannie Mae		1,320,363		7.50		10/1/38		1,371,833


								19,905,734


Government National Mortgage Association - 2.1%

Ginnie Mae		3		5.00		6/20/26		3

Ginnie Mae		2,050,187		5.50		8/20/62		2,060,224

Ginnie Mae, US Treasury + 1.50% ¹		10,033		5.63		4/20/33		10,156

Ginnie Mae, US Treasury + 1.50% ¹		3,499		5.63		4/20/42		3,517

Ginnie Mae		837,395		6.00		9/20/38		853,488


								2,927,388


Other Federal Agency Securities - 0.2%

Small Business Administration Pools, PRIME - 2.50% ¹		95,537		4.25		5/25/43		95,626

Small Business Administration Pools, PRIME + 0.80% ¹		41,832		7.55		3/25/30		42,479


See accompanying notes to financial statements.

8		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Small Business Administration Pools, PRIME + 0.81% ¹		77,825		7.56		2/25/28		78,979


								217,084


Total Mortgage Pass-Through Securities (cost: $27,805,696)								27,762,289


Taxable Municipal Bonds - 18.0%

Colorado Housing & Finance Authority		555,000		6.50		5/1/48		587,818

Columbus Metropolitan Housing Authority		1,000,000		4.60		12/1/28		993,309

Commonwealth of Massachusetts Transportation Fund		1,000,000		5.63		6/1/30		1,023,387

Connecticut Housing Finance Authority		955,000		5.75		11/15/54		983,948

County of Yamhill OR		280,000		4.50		10/1/30		268,318

Idaho Housing & Finance Association		820,000		6.00		1/1/48		856,265

Idaho Housing & Finance Association		845,000		6.50		7/1/53		896,915

Idaho Housing & Finance Association		995,000		6.50		7/1/56		1,066,546

Illinois Housing Development Authority		995,000		6.25		4/1/56		1,053,835

Illinois Housing Development Authority		860,000		6.50		4/1/54		907,141

Kentucky Higher Education Student Loan Corp.		460,000		2.52		6/1/35		440,843

Kentucky Housing Corp.		955,000		6.25		1/1/55		1,004,585

Maryland Community Development Administration		795,000		6.00		9/1/53		828,878

Massachusetts Educational Financing Authority		775,000		2.64		7/1/37		682,195

Massachusetts Educational Financing Authority		750,000		6.07		7/1/33		777,427

Massachusetts Housing Finance Agency		910,000		6.50		12/1/52		962,252

Minnesota Housing Finance Agency		960,000		6.13		7/1/55		1,018,532

Missouri Highway & Transportation Commission		895,000		5.45		5/1/33		919,662

Monroe County Water Authority		1,455,000		6.26		8/1/30		1,506,837

Nebraska Investment Finance Authority		975,000		6.00		9/1/53		1,023,130

Nevada Housing Division		500,000		6.25		10/1/56		533,078

New Mexico Mortgage Finance Authority		695,000		6.25		3/1/55		735,802

New York City Housing Development Corp.		1,000,000		4.27		2/1/30		1,003,846

North Carolina Housing Finance Agency		450,000		6.50		1/1/55		473,806

Oklahoma Development Finance Authority		349,205		3.88		5/1/37		344,104

Pennsylvania Housing Finance Agency		750,000		6.50		10/1/55		812,751

Rhode Island Student Loan Authority		1,000,000		5.80		12/1/33		1,031,145

Rhode Island Student Loan Authority		1,000,000		4.00		12/1/38		992,396

Utah Housing Corp.		890,000		6.25		1/1/54		933,611


Total Taxable Municipal Bonds (cost: $24,499,206)								24,662,362


U.S. Treasury / Federal Agency Securities - 0.5%

U.S. Treasury - 0.5%

U.S. Treasury Notes		700,000		3.50		2/28/31		686,492


								686,492


Total U.S. Treasury / Federal Agency Securities (cost: $684,684)								686,492


See accompanying notes to financial statements.

MARCH 31, 2026		9

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Quality Income Fund (Continued)

Name of Issuer

Quantity

Fair
Value ($)

Short-Term Securities - 0.5%

Fidelity Inv. Money Mkt. Gvt. Fund, 3.53%
(cost: $663,735)

663,735

Total Investments in Securities - 99.4%
(cost: $136,490,001)

136,551,096

Other Assets and Liabilities, net - 0.6%

859,217

Net Assets - 100.0%

$137,410,313

4	144A Restricted Security. The total value of such securities as of March 31, 2026 was $20,299,573 and represented 14.8% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

14	Step Coupon: A bond that pays a coupon rate that increases on a specified date(s). Rate disclosed is as of March 31, 2026.

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

A summary of the levels for the Fund’s investments as of March 31, 2026 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities

	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)

Asset-Backed Securities		—		6,814,725		—		6,814,725
Collateralized Mortgage Obligations		—		61,210,868		—		61,210,868
Corporate Bonds		—		14,750,625		—		14,750,625
Mortgage Pass-Through Securities		—		27,762,289		—		27,762,289
Taxable Municipal Bonds		—		24,662,362		—		24,662,362
U.S. Treasury / Federal Agency Securities		—		686,492		—		686,492
Short-Term Securities		663,735		—		—		663,735

Total:		663,735		135,887,361		—		136,551,096

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


See accompanying notes to financial statements.

10		FINANCIAL STATEMENTS AND OTHER INFORMATION

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Tax-Free Income Fund



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Municipal Bonds - 91.1%

Alabama - 1.8%

AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.05		10/1/45		508,545

AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		490,000		4.63		10/1/49		479,360

AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.88		10/1/55		493,071

AL Hsg. Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		4.95		10/1/55		497,312

Mobile Co. Limited Obligation Warrants Rev. (Gomesa Proj.) ⁴		400,000		4.00		11/1/45		358,479


								2,336,767


Alaska - 0.2%

AK Industrial Dev. & Export Auth. Rev. (GTR Fairbanks Community Hospital Foundation)		250,000		5.00		4/1/33		250,667


Arizona - 0.4%

AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) ^{2, 4, 5}		750,000		6.75		7/1/30		17,625

AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) ^{2, 4, 5}		100,000		5.50		7/1/31		2,350

AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) ^{2, 4, 5}		750,000		7.75		7/1/50		17,625

AZ Industrial Dev. Auth. Rev. (Legacy Cares, Inc. Proj.) ^{2, 4, 5}		200,000		6.00		7/1/51		4,700

Phoenix Arizona Industrial Dev. Auth. Rev. (Christian Care Surprise Inc. Proj.)		500,000		5.50		12/1/50		486,826


								529,126


Arkansas - 0.2%

Mountain Home City Sales & Use Tax Rev.		390,000		2.00		9/1/38		289,071


California - 3.9%

CA Enterprise Dev. Auth. Rev. (Castilleja School Foundation Proj.)		300,000		4.00		6/1/54		266,276

CA Municipal Finance Auth. Rev. (Aldersly Proj.)		300,000		5.00		5/15/43		321,999

CA Municipal Finance Auth. Rev. (Caritas Proj.)		250,000		4.00		8/15/56		198,609

CA Pollution Control Financing Auth. Rev. (Poseidon Resources) ⁴		300,000		5.00		7/1/38		317,359

Encinitas Union School District G.O. Capital Appreciation ⁶		500,000		6.75		8/1/35		617,795

Irvine Facs. Financing Auth. Rev. (Gateway Preserve Land Acquisition Proj.) ⁹		300,000		5.25		5/1/48		300,225

Orange Co. Community Facs. District No. 2017-1 Special Assessment (Village of Esencia)		500,000		4.00		8/15/45		450,638

Sacramento Co. Water Financing Auth. Rev. (NATL-RE FGIC Insured) ¹		500,000		3.20		6/1/39		476,964

San Francisco City & County Airport Comm-San Francisco International Airport Rev.		500,000		5.25		5/1/55		515,235

Santa Fe Springs Public Financing Auth. Rev. (Road Improvements)		275,000		5.25		6/1/45		297,442

Tracy Joint Unified School District G.O. Capital Appreciation ⁶		600,000		7.00		8/1/41		654,457

Val Verde Unified School District G.O. Capital Appreciation (AGM Insured) ⁶		500,000		6.13		8/1/34		590,893


								5,007,892


Colorado - 2.0%

CO Educational & Cultural Facs. Auth. Rev. (CO Springs Charter Academy Proj.)		250,000		5.60		7/1/34		250,265

CO Educational & Cultural Facs. Auth. Rev. (Mountain Phoenix Community Proj.) ⁴		500,000		6.00		7/1/43		464,393

CO Health Facs. Auth. Rev. (Aberdeen Ridge)		400,000		3.50		5/15/30		393,472

CO Health Facs. Auth. Rev. (Aberdeen Ridge)		415,000		5.00		5/15/44		341,029

CO Health Facs. Auth. Rev. (Aberdeen Ridge)		500,000		5.00		5/15/58		355,303

CO. Hsg. and Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		350,000		5.15		5/1/40		357,578

Reunion Metropolitan District Rev.		547,259		3.63		12/1/44		408,630


								2,570,670


Connecticut - 0.6%

Stamford Hsg. Auth. Rev. (Mozaic Concierge Living Proj.)		750,000		6.50		10/1/55		759,511


Florida - 16.6%

Big Cypress Stewardship District Special Assessment Rev. (Assessment Area One)		250,000		5.75		5/1/55		242,064


See accompanying notes to financial statements.

12		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Blackburn Creek Community Dev. District Special Assessment (Grand Palm Proj.)		100,000		6.25		5/1/35		101,694

Brightshore Community Dev. District Special Assessment		500,000		5.70		5/1/57		479,450

Broward Co. FL Airport System Rev.		500,000		5.00		10/1/45		500,055

Capital Projects Finance Auth. Rev. (Imagine School at North Port Proj.) ⁴		500,000		6.50		6/15/55		501,732

Capital Trust Agency Rev. (Tallahassee Tapestry) ^{2, 4, 5}		550,000		6.75		12/1/35		66,000

Capital Trust Agency Rev. (Tuscan Gardens Senior Living Center) ^{2, 5}		250,000		7.00		4/1/35		150,000

Capital Trust Auth. Rev. (Academir Charter Schools Inc. Proj.) ⁴		500,000		6.50		7/1/55		501,457

Capital Trust Auth. Rev. (The Classical Academy Of Sarasota Proj.) ⁴		500,000		6.13		7/1/55		492,763

Collier County Industrial Dev. Auth. Rev. (NCH Healthcare System Proj.)		1,000,000		5.25		10/1/52		1,017,036

East Nassau Stewardship District Special Assessment (PDP No. 4 Series 2025 Proj.)		500,000		6.00		5/1/45		516,364

Elevation Pointe Community Dev. District Special Assessment		500,000		4.40		5/1/32		503,506

Entrada Community Dev. District Special Assessment Rev. ⁴		400,000		4.00		5/1/52		324,879

Esplanade at Wellen Park Community Dev. District Special Assessment		350,000		5.70		5/1/56		341,013

Firethorn Community Dev. District Special Assessment		265,000		5.60		5/1/55		255,378

FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		760,000		5.05		7/1/47		771,557

FL Hsg. Finance Corp. (GNMA/FNMA/FHLMC Collateralized)		705,000		2.75		7/1/50		499,002

FL Municipal Loan Council Special Assessment (Shingle Creek Transit & Utility 2024)		655,000		5.15		5/1/44		666,627

Gramercy Farms Community Dev. District Special Assessment		20,000		6.75		5/1/39		19,021

Grande Pines Community Dev. District Special Assessment		335,000		4.00		5/1/51		271,140

Greater Orlando Aviation Auth. Rev.		500,000		5.00		10/1/49		500,076

Hacienda North Community Dev. District Special Assessment		500,000		6.30		5/1/43		534,562

Hillsborough Co. Aviation Auth. Rev. (Tampa International Airport)		750,000		5.50		10/1/49		790,830

Hobe-St Lucie Conservancy District Special Assessment		350,000		5.60		5/1/44		360,035

Hyde Park Community Dev. District No. 1 Special Assessment		500,000		5.25		5/1/34		505,120

KD52 Community Dev. District No. 1 Special Assessment		350,000		6.13		5/1/56		342,561

Lakes of Sarasota Community Dev. District No. 2 Special Assessment		350,000		5.20		5/1/35		354,169

Lakes of Sarasota Community Dev. District Special Assessment		85,000		3.88		5/1/31		84,859

Lakes of Sarasota Community Dev. District Special Assessment		200,000		4.13		5/1/31		200,670

Lakes of Sarasota Community Dev. District Special Assessment		205,000		4.30		5/1/51		170,386

Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood National)		300,000		5.25		5/1/37		302,949

Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood National)		300,000		5.38		5/1/47		300,422

Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood Ranch)		400,000		5.00		5/1/36		400,236

Lakewood Ranch Stewardship District Cap. Improvement Special Assessment Rev. (Lakewood Ranch)		330,000		5.55		5/1/54		330,852

Lakewood Ranch Stewardship District Special Assessment (Calusa Proj.)		250,000		5.90		5/1/55		256,681

Lakewood Ranch Stewardship District Special Assessment (Palm Grove Proj.)		480,000		5.25		5/1/44		490,729

Lakewood Ranch Stewardship District Special Assessment (Saddlestone Proj.)		400,000		5.50		5/1/56		398,076

Lakewood Ranch Stewardship District Special Assessment (Southeast Proj.)		1,000,000		6.00		5/1/56		1,032,961

Lakewood Ranch Stewardship District Utility Rev. (System Acquisition Proj.) (AGM Insured)		500,000		5.25		10/1/53		514,955

Laurel Road Community Dev. District Special Assessment		210,000		3.13		5/1/31		198,828

LT Ranch Community Dev. District Special Assessment		300,000		5.90		5/1/53		306,508

Marshall Creek Community Dev. District Cap. Improvement Special Assessment Rev.		150,000		5.00		5/1/32		150,104

Meadow View at Twin Creeks Community Dev. District Special Assessment		220,000		3.75		5/1/52		165,690

New River Community Dev. District Cap. Improvement Special Assessment Rev. ^{2, 5, 15}		230,000		5.00		N/A		2

North River Ranch Improvement Stewardship District Special Assessment Rev.		280,000		5.75		5/1/33		290,645

North River Ranch Improvement Stewardship District Special Assessment Rev.		250,000		6.80		5/1/35		250,172

North River Ranch Improvement Stewardship District Special Assessment Rev.		400,000		6.50		5/1/44		427,385


See accompanying notes to financial statements.

MARCH 31, 2026		13

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Tax-Free Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Palm Beach Co. Health Facs. Auth. Rev. (Green Cay Life Plan Village Proj.) ⁴		500,000		11.50		7/1/27		500,000

Palm Beach Co. Health Facs. Auth. Rev. (Lifespace Communities, Inc.)		500,000		4.00		5/15/53		388,246

Pensacola Airport Rev.		500,000		5.50		10/1/55		521,759

River Landing Community Dev. District		300,000		4.35		5/1/51		258,630

Rolling Hills Community Dev. District Special Assessment		120,000		3.65		5/1/32		113,657

Sunbridge Stewardship District Special Assessment Rev. (Del Webb Phase 2D-3 Proj.)		250,000		5.63		5/1/56		244,750

Trout Creek Community Dev. District Special Assessment		300,000		5.38		5/1/38		305,984

Village Community Dev. District No. 16 Special Assessment		500,000		5.13		5/1/56		483,052

Waterset South Community Dev. District Special Assessment		500,000		5.90		5/1/42		524,253

Windward at Lakewood Ranch Community Dev. District Special Assessment		200,000		4.50		5/1/50		172,242


								21,393,774


Georgia - 2.3%

Clarke Co. Hospital Auth. Rev. (Piedmont Healthcare)		350,000		5.00		7/1/46		350,415

Fulton Co. Dev. Auth. Rev. (Woodruff Arts Center)		500,000		5.00		3/15/44		510,302

GA Hsg. & Finance Auth. Rev.		1,000,000		5.05		12/1/45		1,017,194

Gainesville & Hall Co. Dev. Auth. Rev. (Lanier Christian Academy, inc. Proj.) ⁴		640,000		6.25		9/1/44		617,021

Gainesville Hospital Auth. Rev. (Northeast Georgia Health System, Inc. Proj.)		500,000		5.00		2/15/37		507,466


								3,002,398


Idaho - 0.3%

ID Health Facs. Authority Rev. (Terraces Boise Proj.)		500,000		4.50		10/1/50		435,943


Illinois - 4.8%

Chicago O’Hare International Airport Rev. (Senior Lien)		500,000		5.25		1/1/48		507,813

Chicago O’Hare International Airport Rev. (Senior Lien) (AGM Insured)		500,000		5.50		1/1/53		512,439

City of Burbank Rev. (Intercultural Montessori Language School Proj.) ⁴		430,000		6.13		2/1/46		438,383

Galesburg Rev. (Knox College Proj.)		500,000		6.00		10/1/45		501,126

IL Fin. Auth. Educational Facs. Rev. (Rogers Park Montessori School Proj.) ⁴		250,000		6.25		8/1/45		259,333

IL Fin. Auth. Rev. (Christian Homes, Inc.) ^{2, 5}		150,798		5.00		5/15/36		1,508

IL Fin. Auth. Rev. (Edward Elmhurst Healthcare)		1,000,000		5.00		1/1/44		1,040,512

IL Fin. Auth. Sports Facs. Rev. (North Shore Ice Arena Proj.)		1,000,000		6.25		12/1/38		692,448

IL Finance Auth. Rev. (Springfield Sustainable Energy)		750,000		5.50		4/1/51		786,285

IL Sports Facilities Auth. Rev. (State Tax Supported) (AGM Insured)		1,000,000		5.25		6/15/31		1,016,676

Malta Tax Allocation Rev. ^{2, 5, 15}		1,921,000		5.75		N/A		461,040


								6,217,563


Indiana - 1.4%

IN Finance Auth. Rev. (Indiana Masonic Home Proj.)		350,000		5.38		5/1/50		347,874

IN Hsg. & Community Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		1,500,000		4.80		7/1/54		1,477,127


								1,825,001


Iowa - 1.4%

IA Fin. Auth. Rev. (Lifespace Communities, Inc.)		500,000		4.00		5/15/53		388,246

IA Fin. Auth. Rev. (Lifespace Communities, Inc.)		530,000		4.00		5/15/55		406,350

IA Finance Auth. Rev. (Des Moines Christian Schools Proj.) ⁴		1,000,000		5.50		7/1/56		973,861


								1,768,457


Kentucky - 0.5%

Boyle Co. Educational Facs. Auth. Rev. (Centre College)		600,000		5.25		6/1/49		602,453


Louisiana - 2.7%

Capital Area Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		250,000		5.00		10/1/50		251,353


See accompanying notes to financial statements.

14		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Capital Area Finance Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.50		10/1/53		511,725

LA Hsg. Fin. Agy. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.05		6/1/45		510,478

LA Hsg. Fin. Agy. Single Family Mtg. Rev. (Home Ownership Prog.) (GNMA/FHLMC Collateralized)		385,000		2.50		12/1/45		276,633

LA Hsg. Fin. Agy. Single Family Mtg. Rev. (Home Ownership Prog.) (GNMA/FHLMC Collateralized)		445,000		5.75		6/1/54		479,053

LA Local Government Environmental Facilities & Community Development Auth. Rev. ⁴		200,000		5.65		11/1/37		207,574

LA Local Government Environmental Facilities & Community Development Auth. Rev. ⁴		310,000		4.00		11/1/44		284,080

LA Local Government Environmental Facilities & Community Development Auth. Rev. ⁴		615,000		4.00		11/1/46		543,596

LA Public Facs. Auth. Rev. (Tulane Univ. Proj.) (NATL-RE Insured) ¹		405,000		3.32		2/15/36		399,691


								3,464,183


Massachusetts - 1.1%

MA Dev. Finance Agy. Rev. (Orchard Cove, Inc.)		400,000		5.00		10/1/49		391,619

MA Education Finance Auth. Education Rev.		1,000,000		3.00		7/1/51		652,330

MA Housing Finance Agy. Rev.		400,000		3.85		12/1/47		354,216


								1,398,165


Michigan - 5.1%

Allen Park G.O. (BAM Insured)		300,000		3.25		5/1/34		292,224

Grand Rapids Economic Dev. Corp. Rev. (Beacon Hill at Eastgate Proj.)		255,000		6.00		11/1/50		251,222

MI Finance Auth. Rev. (Holly Academy Proj.)		300,000		3.00		12/1/31		278,723

MI Hsg. Dev. Auth. Rev.		2,000,000		2.75		6/1/51		1,409,107

MI Hsg. Dev. Auth. Rev.		3,500,000		2.50		6/1/52		2,277,751

MI Hsg. Dev. Auth. Rev.		685,000		4.95		12/1/53		683,729

MI Public Educational Facs. Auth. Rev. (Chandler Park Academy)		115,000		6.35		11/1/28		115,091

Northern Michigan University Rev.		250,000		5.50		6/1/55		263,012

Saginaw Hospital Finance Auth. Rev. (Covenant Medical Center)		1,000,000		5.25		7/1/51		1,033,452


								6,604,311


Minnesota - 0.6%

Apple Valley Rev. (Senior Living, LLC Proj.)		475,000		5.00		1/1/47		254,149

MN Municipal Gas Agency Rev. (Gas Proj.)		500,000		5.00		9/1/35		515,165


								769,314


Mississippi - 0.5%

MS Development Bank Rev. (Green Bond-Hancock County) ⁴		600,000		4.55		11/1/39		604,019


Missouri - 2.0%

Joplin Industrial Dev. Auth. Rev. (32nd Street Place Community Improvement Dist. Proj.)		115,000		3.50		11/1/40		108,622

Kansas City Industrial Dev. Auth. Rev. (United Methodist Retirement Home, Inc.) ^{2, 5}		192,413		5.00		11/15/46		2

MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		960,000		5.00		11/1/48		971,513

MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		435,000		2.50		5/1/50		295,064

MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		350,000		2.40		11/1/51		227,984

MO Hsg. Dev. Commission Rev. (GNMA/FNMA/FHLMC Collateralized)		1,000,000		5.05		11/1/55		1,008,142


								2,611,327


Montana - 0.2%

MT Board of Housing Single Family Rev.		400,000		2.40		12/1/45		285,561


Nevada - 0.5%

Las Vegas NV Special Improvement District No. 817 Special Assessment (Summerlin Village 29)		300,000		6.00		6/1/48		314,782

NV Hsg. Division Rev. (GNMA/FNMA/FHLMC Collateralized)		495,000		2.45		10/1/51		326,915


								641,697


See accompanying notes to financial statements.

MARCH 31, 2026		15

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Tax-Free Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

New Hampshire - 1.2%

New Hampshire Business Finance Auth. Rev. (Pennichuck Water Works, Inc.)		450,000		5.50		4/1/54		436,370

New Hampshire Business National Finance Auth. Rev. (CABS-The Astro Sunterra Proj.) ⁴		500,000		–		12/15/34		282,351

New Hampshire Business National Finance Auth. Rev. (Grace Christian School Proj.)		300,000		5.75		8/1/55		287,738

New Hampshire Business National Finance Auth. Rev. (Grand Pines Proj.) ⁴		250,000		5.63		6/1/39		250,112

New Hampshire Business National Finance Auth. Rev. (Katy Court Proj. Dev.) ⁴		250,000		5.88		12/1/32		250,153


								1,506,724


New Mexico - 0.2%

NM Mtg. Fin. Auth. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		495,000		2.35		7/1/51		319,709


New York - 5.2%

Build NYC Resource Corp. Rev. (Riverspring Health senior living)		350,000		5.00		12/15/31		344,834

Build NYC Resource Corp. Rev. (Senior Airport Facilities)		300,000		5.50		7/1/55		306,294

Hempstead Town Local Development Corp. Rev. (Hofstra University Proj.)		350,000		4.00		7/1/33		350,095

New York City Housing Development Corp. Multifamily Mtg. Rev.		300,000		4.05		11/1/41		295,878

New York Transportation Dev. Corp. Rev.		500,000		6.00		6/30/55		525,817

New York Transportation Dev. Corp. Rev.		500,000		5.50		6/30/60		500,763

New York Transportation Dev. Corp. Rev. (AGC Insured)		1,000,000		5.25		12/31/54		1,005,616

New York Transportation Dev. Corp. Rev. (AGM Insured)		300,000		5.50		6/30/44		314,275

NY State Mortgage Agency Homeowner Mortgage Rev.		1,000,000		2.45		10/1/45		722,950

NY State Mortgage Agency Homeowner Mortgage Rev.		980,000		2.50		10/1/46		711,545

NY State Mortgage Agency Homeowner Mortgage Rev.		710,000		3.30		10/1/47		570,751

NY State Mortgage Agency Homeowner Mortgage Rev.		1,625,000		2.55		4/1/50		1,116,666


								6,765,484


North Carolina - 0.7%

Mecklenburg Co. Rev. (Little Rock Apts)		405,000		5.38		1/1/36		405,872

NC Housing Finance Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		490,000		5.00		7/1/46		495,025


								900,897


North Dakota - 0.9%

ND Housing Finance Agency Rev.		925,000		2.50		7/1/44		680,410

ND Housing Finance Agency Rev.		500,000		5.10		7/1/48		505,058


								1,185,468


Ohio - 6.3%

Bedford City School District G.O. (BAM Insured)		750,000		5.50		12/1/50		784,499

Columbus Regional Airport Auth. Rev. (John Glenn Columbus International Airport)		725,000		5.50		1/1/50		758,208

Euclid Public Library G.O.		300,000		5.00		12/1/49		304,729

Hamilton Co. Rev. (Life Enriching Communities)		500,000		5.50		1/1/50		507,721

North Ridgeville City School District G.O.		300,000		5.25		12/1/54		303,488

OH Housing Fin. Agy. Rev.		1,800,000		2.45		9/1/51		1,189,544

OH Housing Fin. Agy. Rev. (First-Time Homebuyer Program) (GNMA/FNMA/FHLMC Collateralized)		500,000		2.90		9/1/45		390,979

OH Housing Fin. Agy. Rev. (GNMA/FNMA/FHLMC Collateralized)		1,265,000		5.10		9/1/47		1,288,345

OH Housing Fin. Agy. Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.20		9/1/50		507,768

OH Housing Fin. Agy. Rev. (GNMA/FNMA/FHLMC Collateralized)		965,000		2.75		9/1/51		675,994

St Bernard OH Rev. (AGM Insured)		500,000		5.00		12/1/43		500,459

Willoughby-Eastlake City School District G.O.		400,000		5.00		12/1/30		404,216

Xenia OH G.O. (BAM Insured)		500,000		5.00		12/1/54		506,434


								8,122,384


See accompanying notes to financial statements.

16		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Oklahoma - 0.4%

Lawton Industrial Dev. Auth. Rev.		500,000		5.25		7/1/55		511,718


Oregon - 0.9%

OR Hsg. & Community Services Dept. Rev. (Single Family Mtg. Program)		500,000		2.35		1/1/44		371,084

OR Hsg. & Community Services Dept. Rev. (Single Family Mtg. Program)		1,000,000		2.38		1/1/45		722,892


								1,093,976


Pennsylvania - 2.7%

Butler Co. General Authority Rev. (School District Proj.) (AGM G.O. of District) ¹		460,000		3.33		10/1/34		448,946

Cumberland Municipal Auth. Rev. (Messiah Village Proj.)		500,000		5.50		6/1/51		501,614

PA Higher Educational Assistance Agy. Rev.		265,000		2.63		6/1/42		235,114

PA Hsg. Finance Agency Rev.		500,000		5.10		10/1/45		508,844

PA Hsg. Finance Agency Rev.		1,000,000		5.00		10/1/50		1,004,736

Philadelphia Airport Rev.		425,000		5.00		7/1/37		430,813

Philadelphia Industrial Dev. Auth. Rev. (Charter School Proj.)		350,000		5.63		8/1/36		350,884


								3,480,951


South Carolina - 2.3%

Berkeley Co. Nexton Improvement District Special Assessment		350,000		4.25		11/1/40		328,761

SC Jobs-Economic Dev. Auth. Rev. (Carealliance Health Services)		500,000		5.25		8/15/46		500,464

SC Jobs-Economic Dev. Auth. Rev. (River Academy Proj.) ⁴		325,000		7.00		6/15/43		334,631

SC Jobs-Economic Dev. Auth. Rev. (Seafields at Kiawah Island Proj.)		500,000		7.50		11/15/53		526,215

SC State Hsg. Finance & Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		1,000,000		5.00		1/1/55		1,002,593

SC State Hsg. Finance & Dev. Auth. Rev. (GNMA/FNMA/FHLMC Collateralized)		300,000		4.95		7/1/55		297,146


								2,989,810


Tennessee - 3.5%

Metropolitan Nashville Airport Auth. Rev.		300,000		5.00		7/1/49		301,285

Nashville Metropolitan Dev. & Hsg. Agency Tax Allocation ⁴		300,000		5.13		6/1/36		303,551

Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) ^{2, 5, 15}		1,850,000		5.35		N/A		185

Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) ^{2, 5}		7,875,000		5.55		1/1/29		787

Shelby Co. Health, Education & Hsg. Facs. Rev. (CME Memphis Apts. Proj.) ^{2, 5}		1,630,000		6.00		1/1/29		16

TN Hsg. Dev. Agency Rev.		815,000		2.55		1/1/45		597,142

TN Hsg. Dev. Agency Rev.		1,485,000		2.38		7/1/46		1,059,102

TN Hsg. Dev. Agency Rev.		385,000		2.55		7/1/46		282,923

TN Hsg. Dev. Agency Rev.		730,000		5.05		7/1/48		737,992

TN Hsg. Dev. Agency Rev.		990,000		2.50		7/1/51		661,086

TN Hsg. Dev. Agency Rev. (GNMA/FNMA/FHLMC Collateralized)		500,000		5.35		7/1/48		515,457


								4,459,526


Texas - 11.7%

Arlington Higher Education Finance Corp., Education Rev. (Pineywoods Community Academy)		750,000		2.38		8/15/51		460,167

Brazos Higher Education Auth., Inc. Rev. (Subordinate Student Loan)		1,000,000		3.00		4/1/40		797,125

Clifton Higher Education Finance Corp. Rev. (Aristoi Classical Academy)		500,000		6.00		8/15/50		490,561

Clifton Higher Education Finance Corp. Rev. (International Leadership of Texas, Inc.)		250,000		5.25		2/15/49		257,501

Dallas Special Tax (Fair Park Venue Proj.) ^{1, 4}		250,000		6.25		8/15/53		250,288

El Paso Hsg. Finance Corp. Rev. (GNMA Collateralized)		770,000		5.20		3/1/55		775,501

Houston Airport System Rev. (AGM Insured)		1,000,000		5.25		7/1/48		1,030,721

Houston Hotel Occupancy Tax & Special Rev. (Second Lien)		500,000		5.50		9/1/58		524,173

New Hope Cultural Education Fac. Corp. Rev. (Cardinal Bay) ²		460,000		4.00		7/1/26		358,800


See accompanying notes to financial statements.

MARCH 31, 2026		17

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Tax-Free Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

New Hope Cultural Education Facs. Finance Corp. Rev.		500,000		6.50		10/1/55		510,110

New Hope Cultural Education Facs. Finance Corp. Rev. (Buckingham Senior Living Community, Inc.) ¹		540,977		2.00		11/15/61		249,045

North Central Texas Health Facility Development Corp. (CC Young Memorial Home) ^{2, 5, 15}		204,000		5.38		N/A		165,750

TX Affordable Hsg. Corp. Rev. (GNMA Collateralized)		500,000		5.00		3/1/49		510,836

TX Department of Housing & Community Affairs (GNMA Collateralized)		500,000		3.00		9/1/45		394,943

TX Department of Housing & Community Affairs (GNMA Collateralized)		985,000		2.50		7/1/51		657,747

TX Department of Housing & Community Affairs (GNMA Collateralized)		1,750,000		3.13		1/1/52		1,303,655

TX Department of Housing & Community Affairs (GNMA Collateralized)		500,000		5.00		1/1/49		507,059

TX Department of Housing & Community Affairs (GNMA Collateralized)		1,000,000		5.00		1/1/50		1,008,024

TX Department of Housing & Community Affairs (GNMA Collateralized)		750,000		5.25		9/1/52		759,514

TX Department of Housing & Community Affairs (GNMA Collateralized)		1,500,000		5.25		1/1/53		1,513,668

TX Department of Housing & Community Affairs (GNMA Collateralized)		1,000,000		5.25		9/1/53		1,009,257

TX Department of Housing & Community Affairs (GNMA Collateralized)		1,500,000		5.13		1/1/54		1,517,092


								15,051,537


Utah - 2.3%

Fields Estates Public Infrastructure District Special Assessment (Fields Estates Assessment Area) ⁴		500,000		5.25		12/1/53		480,791

Jordanelle Ridge Public Infrastructure District No. 2 G.O. ⁴		500,000		7.75		3/1/54		518,507

Northpoint Infrastructure Financing District Special Assessment ⁴		250,000		6.63		12/1/55		245,987

Panorama Public Infrastructure District No. 1 G.O. ⁴		500,000		6.25		3/1/55		500,753

UT Charter School Finance Auth. Rev. (Mountain Sunrise Academy) ⁴		495,000		3.50		12/15/31		457,080

UT Charter School Finance Auth. Rev. (Wasatch Peak Academy Proj.)		325,000		5.00		10/15/49		324,448

UT Hsg. Corp. Single Family Mtg. Rev. (GNMA/FNMA/FHLMC Collateralized)		455,000		5.00		1/1/54		456,827


								2,984,393


Virginia - 0.3%

VA Beach Dev. Auth. Rev. (Westminster Canterbury Proj.)		320,000		6.25		9/1/30		322,081


Washington - 0.6%

King Co. Hsg. Auth. Rev.		250,000		5.38		7/1/45		261,209

WA State Hsg. Finance Commission Rev. (Horizon House Proj.)		500,000		6.25		1/1/56		498,056


								759,265


West Virginia - 0.5%

WV Hsg. Dev. Fund Rev.		500,000		2.50		11/1/51		333,019

WV Hsg. Dev. Fund Rev.		250,000		5.13		11/1/55		251,946


								584,965


Wisconsin - 2.3%

Public Finance Auth. Rev. (Grand Hyatt San Antonio Hotel Acquisition Proj.)		500,000		5.00		2/1/52		480,156

Public Finance Auth. Rev. (Grand Hyatt San Antonio Hotel Acquisition Proj.) ⁴		500,000		6.00		2/1/62		508,021

Public Finance Auth. Rev. (Legacy Hills Proj.) ⁴		500,000		6.00		11/15/45		489,787

Public Finance Auth. Rev. (Viticus Group Proj.) ⁴		250,000		6.25		12/1/45		255,789

WI Health & Educational Facs. Auth. Rev. (Benevolent Corp. Cedar Communities)		500,000		5.50		6/1/61		494,490

WI Public Finance Auth. Rev. (Delray Beach Radiation Therapy) ^{2, 4, 5}		750,000		6.25		11/1/28		262,500

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,520		9.00		1/1/46		103

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,287		9.00		1/1/47		101

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		447		12.00		1/1/47		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,171		9.00		1/1/48		100

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		390		12.00		1/1/48		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,055		9.00		1/1/49		99


See accompanying notes to financial statements.

18		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		384		11.00		1/1/49		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,822		9.00		1/1/50		97

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		372		11.00		1/1/50		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		17,334		9.00		1/1/51		105

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		365		11.00		1/1/51		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{1, 2, 4}		429,120		3.75		7/1/51		287,561

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		17,218		9.00		1/1/52		104

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		475		10.00		1/1/52		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,985		9.00		1/1/53		102

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		469		10.00		1/1/53		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,869		9.00		1/1/54		101

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		453		10.00		1/1/54		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,636		9.00		1/1/55		99

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		444		9.00		1/1/55		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		434		9.00		1/1/56		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,404		9.00		1/1/56		98

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,287		9.00		1/1/57		97

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		481		9.00		1/1/57		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		16,055		9.00		1/1/58		95

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		469		9.00		1/1/58		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		456		9.00		1/1/59		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,938		9.00		1/1/59		94

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		447		8.00		1/1/60		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,822		9.00		1/1/60		93

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		440		8.00		1/1/61		3

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,589		9.00		1/1/61		91

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		428		8.00		1/1/62		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,473		9.00		1/1/62		90

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		419		8.00		1/1/63		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,240		9.00		1/1/63		89

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		409		8.00		1/1/64		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,124		9.00		1/1/64		88

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		403		7.00		1/1/65		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		15,008		9.00		1/1/65		87

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		434		7.00		1/1/66		2

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		14,775		9.00		1/1/66		85

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		5,235		5.00		1/1/67		30

WI Public Finance Auth. Rev. (Lombard Public Facilities Corp.) ^{2, 4, 5}		192,429		9.00		1/1/67		1,106

WI Public Finance Auth. Rev. (MD Proton Treatment Center) ^{2, 4, 5}		500,000		6.13		1/1/33		225,000


								3,006,509


Total Municipal Bonds (Cost: $144,213,273)								117,413,267


See accompanying notes to financial statements.

MARCH 31, 2026		19

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Tax-Free Income Fund (Continued)



Name of Issuer	Quantity		Fair Value ($)

Investment Companies - 3.9%

BlackRock MuniHoldings Fund, Inc. (MHD)		45,523		513,499

BlackRock MuniYield Quality Fund III, Inc. (MYI)		36,183		380,283

DWS Municipal Income Trust (KTF)		76,592		696,987

Invesco Advantage Municipal Income Trust II (VKI)		31,673		274,288

Invesco Municipal Opportunity Trust (VMO)		62,240		591,902

Invesco Municipal Trust (VKQ)		67,772		645,190

Invesco Pennsylvania Value Municipal Income Trust (VPV)		3,459		36,562

Invesco Quality Municipal Income Trust (IQI)		78,114		751,457

Invesco Trust for Investment Grade Municipals (VGM)		56,447		557,132

Nuveen AMT-Free Municipal Credit Income Fund (NVG)		25,123		309,767

Nuveen AMT-Free Quality Municipal Income Fund (NEA)		20,612		231,473

Nuveen Quality Municipal Income Fund (NAD)		7,010		80,615


Total Investment Companies (cost: $6,234,890)				5,069,155


Total Investments in Securities - 95.0% (cost: $150,448,163)				122,482,422


Other Assets and Liabilities, net - 5.0%				6,468,986


Net Assets - 100.0%			$	128,951,408

²	Security considered illiquid by the Investment Adviser. The total value of such securities as of March 31, 2026 was $2,024,656 and represented 1.6% of net assets.

⁴	144A Restricted Security. The total value of such securities as of March 31, 2026 was $13,403,296 and represented 10.4% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

⁵	The issuer is in default of interest or principal payments, or other debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2026 was $1,378,295 and represented 1.1% of net assets.

⁶	Zero coupon or convertible capital appreciation bond, for which the rate disclosed is either the effective yield on purchase date or the coupon rate to be paid upon conversion to coupon paying.

⁹	Municipal Lease Security. The total value of such securities as of March 31, 2026 was $300,225 and represented 0.2% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

¹⁵	Securities with a “N/A” maturity date have passed their stated maturity date and have pending restructuring arrangements.

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

A summary of the levels for the Fund’s investments as of March 31, 2026 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities

	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)	Total ($)

Municipal Bonds		—		117,413,267	—		117,413,267
Investment Companies		5,069,155		—	—		5,069,155

Total:		5,069,155		117,413,267	—		122,482,422


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


See accompanying notes to financial statements.

20		FINANCIAL STATEMENTS AND OTHER INFORMATION

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Minnesota Tax-Free Income Fund



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Municipal Bonds - 96.7%

Education/Student Loan - 16.8%

Bethel Charter School Lease Rev. (Spectrum High School Proj.)		1,100,000		4.00		7/1/37		1,041,258

Bethel Charter School Lease Rev. (Spectrum High School Proj.)		1,750,000		4.25		7/1/47		1,486,332

Cologne Charter School Lease Rev. (Cologne Academy Proj.)		470,000		5.00		7/1/29		470,179

Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		1,575,000		5.25		7/1/37		1,575,955

Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		600,000		5.25		7/1/40		600,237

Deephaven Charter School Lease Rev. (Eagle Ridge Academy Proj.)		1,000,000		5.50		7/1/50		999,958

Duluth Hsg. & Redev. Auth. Rev. (Public School Academy Proj.)		1,100,000		5.00		11/1/38		993,096

Duluth Hsg. & Redev. Auth. Rev. (Public School Academy Proj.)		350,000		5.00		11/1/48		277,975

Forest Lake Charter School Lease Rev. (Lake International Language Academy)		850,000		5.50		8/1/36		850,589

Ham Lake Charter School Lease Rev. (Davinci Academy Proj.)		875,000		5.00		7/1/31		875,012

Ham Lake Charter School Lease Rev. (Parnassus Prep. Sch. Proj.)		215,000		4.00		11/1/26		214,658

Ham Lake Charter School Lease Rev. (Parnassus Prep. Sch. Proj.)		2,720,000		5.00		11/1/36		2,724,544

Hugo Charter School Lease Rev. (Noble Academy Proj.)		615,000		5.00		7/1/29		615,239

Hugo Charter School Lease Rev. (Noble Academy Proj.)		1,000,000		5.00		7/1/34		1,000,187

Independence Charter School Lease Rev. (Beacon Academy Proj.)		80,000		4.25		7/1/26		79,874

Independence Charter School Lease Rev. (Beacon Academy Proj.)		750,000		4.75		7/1/31		746,752

Independence Charter School Lease Rev. (Beacon Academy Proj.)		1,200,000		5.00		7/1/36		1,180,016

Independence Charter School Lease Rev. (Paladin High School Proj.)		225,000		3.25		6/1/31		206,909

Independence Charter School Lease Rev. (Paladin High School Proj.)		1,410,000		4.00		6/1/51		993,949

Minneapolis School Lease Rev. (Friendship Academy of the Arts) ⁴		440,000		4.00		12/1/31		369,919

Minneapolis School Lease Rev. (Friendship Academy of the Arts) ⁴		1,385,000		5.25		12/1/43		1,034,184

Minneapolis School Lease Rev. (Twin Cities International School) ⁴		425,000		4.25		12/1/27		423,812

Minneapolis School Lease Rev. (Twin Cities International School) ⁴		1,000,000		5.00		12/1/37		968,467

MN Health & Education Facs. Auth. Rev. (Augsburg College)		2,815,000		4.25		5/1/40		1,959,021

MN Health & Education Facs. Auth. Rev. (Bethel Univ.)		1,000,000		5.00		5/1/47		902,873

MN Health & Education Facs. Auth. Rev. (College of St. Benedict)		1,900,000		5.00		3/1/37		1,900,336

MN Health & Education Facs. Auth. Rev. (College of St. Olaf)		2,530,000		3.00		10/1/41		2,142,725

MN Health & Education Facs. Auth. Rev. (Macalester College)		1,000,000		5.25		3/1/56		1,035,835

MN Health & Education Facs. Auth. Rev. (Macalester College)		2,000,000		5.50		3/1/66		2,104,314

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		2,000,000		5.00		10/1/47		2,045,406

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		3,000,000		5.00		10/1/52		3,039,817

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		750,000		5.00		4/1/35		751,114

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		1,150,000		4.00		4/1/39		1,084,495

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		850,000		5.00		10/1/40		880,274

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		4,000,000		4.00		10/1/44		3,846,286

MN Health & Education Facs. Auth. Rev. (Univ. of St. Thomas)		3,650,000		5.00		10/1/49		3,703,520

MN Office of Higher Education Rev. ⁸		2,000,000		4.00		11/1/42		1,883,215

MN Office of Higher Education Rev. ⁸		2,260,000		2.65		11/1/38		2,084,699

MN Office of Higher Education Rev. ⁸		990,000		4.00		11/1/37		987,645

Savage Charter School Lease Rev. (Aspen Academy)		90,000		4.00		10/1/26		89,769

St. Cloud Charter School Lease Rev. (Stride Academy Proj.)		1,850,000		5.00		4/1/36		1,714,761

St. Paul Hsg. & Redev. Auth.		700,000		5.00		12/1/30		700,495

St. Paul Hsg. & Redev. Auth.		1,150,000		5.00		12/1/37		1,150,125

St. Paul Hsg. & Redev. Auth.		705,000		5.00		12/1/46		668,742


See accompanying notes to financial statements.

22		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

St. Paul Hsg. & Redev. Auth. (German Immersion School)		700,000		5.00		7/1/33		700,303

St. Paul Hsg. & Redev. Auth. (Hope Community Academy Proj.)		585,000		4.50		12/1/29		557,305

St. Paul Hsg. & Redev. Auth. (Math & Science Academy) ⁴		700,000		3.00		6/1/31		561,715

St. Paul Hsg. & Redev. Auth. (Math & Science Academy) ⁴		1,225,000		4.00		6/1/51		699,441

St. Paul Hsg. & Redev. Auth. (Nova Classical Academy Proj.)		75,000		2.00		9/1/26		74,289

St. Paul Hsg. & Redev. Auth. (St. Paul Conservatory for Performing Artists)		1,135,000		4.63		3/1/43		940,522

St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		625,000		3.00		12/1/29		602,746

St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		600,000		4.00		12/1/39		539,318

St. Paul Hsg. & Redev. Auth. Rev. (Community of Peace Academy Proj.)		1,000,000		4.00		12/1/49		793,514

St. Paul Hsg. & Redev. Auth. Rev. (Metro Deaf School Proj.) ⁴		1,000,000		6.38		6/15/61		985,220

St. Paul Hsg. & Redev. Auth. Rev. (Nova Classical Academy Proj.)		475,000		4.13		9/1/47		402,518

St. Paul Hsg. & Redev. Auth. Rev. (Nova Classical Academy Proj.)		555,000		5.50		9/1/55		535,855

Woodbury Charter School Lease Rev. (Math & Science Academy) ⁴		3,000,000		5.25		6/1/45		2,869,565


								64,666,879


General Obligation - 9.4%

American Samoa Economic Dev. Auth. Rev. ^{4, 11}		750,000		5.25		9/1/45		738,586

Belle Plaine Independent School District No. 716		500,000		5.00		2/1/52		512,932

Blooming Prairie Independent School District No. 756		1,300,000		2.25		2/1/45		854,068

Duluth Independent School District No. 709		2,000,000		4.00		9/30/26		2,009,258

Itasca County Independent School District No. 318		3,000,000		2.00		2/1/39		2,252,923

Itasca County Independent School District No. 318		4,250,000		2.00		2/1/40		3,109,366

Itasca G.O.		2,000,000		2.38		2/1/45		1,346,601

Itasca G.O.		4,000,000		2.50		2/1/50		2,458,453

Madison Lake G.O.		590,000		2.13		2/1/42		394,056

Mankato Independent School District No. 77		1,150,000		4.00		2/1/42		1,117,396

Minnesota G.O.		5,000,000		2.00		9/1/40		3,578,655

Moorhead G.O.		510,000		2.13		2/1/42		344,252

Morrison Co. Education District No. 6979		1,000,000		4.50		2/1/34		1,000,482

Norwood Young America Independent School District No. 108		1,400,000		2.13		2/1/42		989,296

Norwood Young America Independent School District No. 108		1,500,000		2.25		2/1/45		1,010,230

Richfield Independent School District No. 280		1,000,000		4.00		2/1/37		1,004,305

Robbinsdale Independent School District No. 281		1,000,000		2.25		2/1/41		726,330

Roseau Independent School District No. 682		400,000		2.25		2/1/46		254,987

Sartell Independent School District No. 748		1,000,000		4.50		2/1/46		1,005,603

Sauk Centre Independent School District No. 743		1,000,000		2.00		2/1/40		730,721

Waite Park G.O.		750,000		5.00		12/15/50		773,503

White Bear Lake Independent School District No. 624		10,850,000		3.00		2/1/43		8,962,411

Zumbrota-Mazeppa Independent School District No. 2805		1,500,000		2.50		2/1/44		1,050,179


								36,224,593


Hospital/Health Care - 14.2%

Center City Heath Care Facs. Rev. (Hazelden Betty Ford Foundation Proj.)		1,000,000		5.00		11/1/44		1,035,402

Center City Heath Care Facs. Rev. (Hazelden Betty Ford Foundation Proj.)		500,000		5.00		11/1/47		508,003

Chatfield Health Care and Hsg. Facs. Rev. (Chosen Valley Care Center)		1,225,000		5.00		9/1/52		1,018,691

Crookston Health Care Facs. Rev. (Riverview Health Care Proj.)		1,000,000		4.00		5/1/32		638,116

Dakota Co. Community Dev. Agy. (Sanctuary at W. St. Paul Proj.)		900,000		5.75		8/1/30		852,472

Dakota Co. Community Dev. Agy. (Sanctuary at W. St. Paul Proj.)		1,050,000		6.00		8/1/35		939,445


See accompanying notes to financial statements.

MARCH 31, 2026		23

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Minnesota Tax-Free Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		350,000		4.00		6/15/37		354,906

Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		850,000		3.00		6/15/44		711,161

Duluth Economic Dev. Auth. Rev. (St. Luke Hospital of Duluth)		1,100,000		5.25		6/15/52		1,120,519

Hayward Hsg. & Health Care Facs. Rev. (St. Johns Lutheran Home of Albert Lea Proj.) ^{2, 5}		1,900,000		5.00		10/1/34		1,016,500

Lakes Area Economic Dev. Auth. Rev. (Vivie Nelson Care Center Proj.)		850,000		5.50		11/1/46		844,644

Maple Grove Health Care System Rev. (Maple Grove Hospital Corp.)		825,000		5.00		5/1/32		831,938

Maple Grove Health Care System Rev. (Maple Grove Hospital Corp.)		2,175,000		4.00		5/1/37		2,083,590

Minneapolis & St. Paul Hsg. & Redev. Auth. Health Care Rev. (Children’s Health Care)		2,500,000		5.00		8/15/42		2,635,174

Minneapolis & St. Paul Hsg. & Redev. Auth. Health Care Rev. (Children’s Health Care)		1,000,000		5.00		8/15/43		1,049,518

Minneapolis Health Care System Rev. (Fairview Health Services)		2,590,000		5.00		11/15/34		2,591,266

Minneapolis Health Care System Rev. (Fairview Health Services)		2,500,000		5.00		11/15/49		2,421,654

Minneapolis Health Care System Rev. (Fairview Health Services)		200,000		5.00		11/15/29		200,145

MN Agricultural & Economic Dev. Board Rev. (HealthPartners Oblig. Group Proj.)		5,200,000		5.25		1/1/54		5,307,841

Oak Park Heights Nursing Home Rev. (Boutwells Landing Care Center)		1,265,000		5.50		8/1/28		1,264,973

Oak Park Heights Nursing Home Rev. (Boutwells Landing Care Center)		1,000,000		6.00		8/1/36		992,215

Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev. ¹¹		175,000		4.00		7/1/37		164,810

Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev. ¹¹		200,000		4.00		7/1/39		183,537

Puerto Rico Industrial Tourist Educational Medical & Environmental Ctl. Facs. Fin. Auth. Rev.¹¹		220,000		4.00		7/1/41		193,857

Rochester Health Care Facs. Rev. (Mayo Clinic)		7,500,000		4.00		11/15/48		7,052,611

Rochester Health Care Facs. Rev. (Mayo Clinic)		4,000,000		4.38		11/15/53		3,801,405

Rochester Health Care Facs. Rev. (Mayo Clinic)		3,000,000		5.00		11/15/34		3,413,242

St. Cloud Health Care Rev. (CentraCare Health System Proj.)		5,385,000		5.00		5/1/46		5,387,056

St. Louis Park Health Care Facs. Rev. (Mount Olivet Careview Home Health Proj.) ¹		2,250,000		4.60		6/1/41		2,093,552

St. Paul Hsg. & Redev. Auth. Health Care Rev. (Senior Episcopal Homes Proj.)		2,150,000		5.00		5/1/38		1,993,140

St. Paul Hsg. & Redev. Auth. Rev. (Episcopal Homes Obligated Group) ⁴		1,750,000		5.63		11/1/46		1,738,034


								54,439,417


Industrial/Pollution Control - 0.5% ⁸

St. Paul Port Auth. Rev.		1,000,000		4.00		10/1/40		918,262

St. Paul Port Auth. Solid Waste Disposal Rev. (Gerdau St. Paul Steel Mill Proj.) ⁴		1,000,000		4.50		10/1/37		961,829


								1,880,091


Multifamily Mortgage - 21.0%

Anoka Hsg. Rev. (Homestead at Anoka, Inc. Proj.)		1,000,000		5.50		11/1/46		955,921

Apple Valley Rev. (Orchard Path Phase II Proj.)		300,000		4.00		9/1/36		289,054

Apple Valley Rev. (Orchard Path Phase II Proj.)		440,000		4.00		9/1/41		398,072

Apple Valley Rev. (Orchard Path Phase II Proj.)		830,000		4.00		9/1/51		650,446

Apple Valley Rev. (Orchard Path Phase II Proj.)		750,000		4.00		9/1/61		554,936

Apple Valley Senior Hsg. Rev. (Orchard Path Proj.)		2,000,000		5.00		9/1/58		1,796,381

Apple Valley Senior Hsg. Rev. (PHS Apple Valley Senior Housing, Inc.)		400,000		5.38		9/1/45		406,098

Apple Valley Senior Hsg. Rev. (PHS Apple Valley Senior Housing, Inc.)		500,000		5.50		9/1/55		501,288

Apple Valley Senior Hsg. Rev. (PHS Apple Valley Senior Housing, Inc.)		750,000		5.63		9/1/65		753,429

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		200,000		6.75		1/1/27		180,390

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		950,000		4.00		1/1/30		889,237

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		1,430,000		4.25		1/1/37		1,176,133

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		950,000		7.00		1/1/37		493,671

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		1,640,000		4.38		1/1/47		1,178,036

Apple Valley Senior Living Rev. (Senior Living LLC Proj.)		2,850,000		5.00		1/1/47		1,524,894


See accompanying notes to financial statements.

24		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

Bethel Hsg. and Health Care Facs. Rev. (Ecumen Obligated Group)		2,000,000		6.13		3/1/44		2,031,800

Bethel Rev. (Grandview Christian Home Proj.)		1,500,000		5.00		10/1/41		1,499,270

Blaine Senior Hsg. & Health Care Facs. Rev. (Crest View Senior Community Proj.) ^{2, 5, 15}		892,133		5.13		N/A		847,526

Blaine Senior Hsg. & Health Care Facs. Rev. (Crest View Senior Community Proj.) ^{2, 5}		1,174,047		5.75		7/1/35		1,115,345

Blaine Senior Hsg. & Health Care Facs. Rev. (Crest View Senior Community Proj.) ^{2, 5}		1,427,413		6.13		7/1/45		1,356,042

Brainerd Senior Hsg. & Health Care Facs. Rev. (Pinecrest of Country Manor Proj.)		1,000,000		6.00		5/1/55		1,013,362

Chisago Hsg. and Health Care Rev. (CDL Homes LLC)		750,000		6.00		8/1/33		750,381

Cloquet Rev. (HADC Cloquet, LLC Proj.)		180,000		2.20		8/1/28		171,341

Cloquet Rev. (HADC Cloquet, LLC Proj.)		200,000		3.20		8/1/34		177,133

Cloquet Rev. (HADC Cloquet, LLC Proj.)		500,000		4.00		8/1/41		418,949

Cloquet Rev. (HADC Cloquet, LLC Proj.)		500,000		4.00		8/1/48		366,746

Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev.		2,500,000		4.00		1/1/42		2,494,637

Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev. (FNMA)		1,050,000		4.20		5/1/43		995,144

Dakota Co. Community Dev. Agy. Multifamily Hsg. Rev. (The Quill Proj.) ⁴		2,500,000		3.55		4/1/39		2,074,057

Duluth Hsg. & Redev. Auth. Rev. (Pennel Park Proj.)		1,236,581		4.50		8/1/41		1,249,708

Duluth Hsg. & Redev. Auth. Rev. (Woodland Garden Apartments)		1,293,000		4.95		8/1/42		1,353,388

Fridley Multifamily Hsg. Rev. (Village Green Apartments Proj.)		3,170,925		3.75		11/1/34		3,140,268

Hayward Health Care Facs. Rev. (American Baptist Homes Midwest Proj.) ^{2, 5}		1,350,000		5.38		8/1/34		940,691

Hayward Health Care Facs. Rev. (American Baptist Homes Midwest Proj.) ^{2, 5}		500,000		5.75		2/1/44		344,491

Lauderdale Multifamily Hsg. Rev. (The Fern Senior Affordable Housing Proj.)		2,000,000		5.13		1/1/40		1,964,640

Minneapolis Multifamily Hsg. Rev. (14th & Central LLLP Proj.) (FNMA Collateralized)		4,499,932		2.35		2/1/38		3,610,006

Minneapolis Multifamily Hsg. Rev. (Greenway Heights Family Housing)		1,015,000		5.75		7/15/31		1,015,187

Minneapolis Senior Hsg. & Health Care Rev. (Ecumen Mill City Quarter)		375,000		4.75		11/1/28		374,972

Minneapolis Senior Hsg. & Health Care Rev. (Ecumen Mill City Quarter)		1,500,000		5.00		11/1/35		1,481,731

Minnetonka MF Hsg. Rev. (Elmbrooke & Golden Valley Townhome Proj.) (FNMA Collateralized)		1,760,551		3.00		11/1/34		1,622,844

Moorhead Economic Dev. Auth. Rev. Ref. (EverCare Sr. Living LLC)		140,000		4.65		9/1/26		139,320

Moorhead Health Care Rev. Ref. (EverCare Sr. Living LLC)		1,000,000		5.00		9/1/32		932,610

Moorhead Health Care Rev. Ref. (EverCare Sr. Living LLC)		250,000		5.13		9/1/37		220,161

New Ulm Economic Dev. Auth. Rev. (HADC Ridgeway Proj.)		1,500,000		5.00		8/1/39		1,281,048

North Oaks Rev. (Waverly Gardens Proj.)		150,000		4.25		10/1/41		140,360

North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		2,000,000		4.00		10/1/33		1,937,843

North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		1,500,000		5.00		10/1/35		1,504,829

North Oaks Senior Hsg. Rev. (Waverly Gardens Proj.)		1,000,000		5.00		10/1/47		962,532

Oakdale Hsg. & Health Care Facs. Rev. (Ebenezer Obligated Group)		2,550,000		5.70		12/1/50		2,539,874

Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		640,000		6.38		12/1/33		640,693

Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		2,500,000		6.50		12/1/35		2,502,485

Rochester Health Care & Hsg. Rev. (The Homestead at Rochester)		250,000		6.88		12/1/48		250,129

Sartell Health Care & Hsg. Facs. Rev. (Country Manor Campus LLC Proj.)		2,150,000		5.30		9/1/37		2,150,009

Sauk Rapids Health Care & Hsg. Facs. Rev. (Good Shepherd Lutheran Home Proj.)		1,565,000		5.13		1/1/39		1,419,955

Shakopee Senior Hsg. Rev. (Benedictine Senior Living Obligated Group)		1,500,000		5.75		11/1/55		1,479,754

St. Bonifacius Health Care Rev. (Augustana Chapel View Homes, Inc. Proj.)		2,225,000		6.00		6/1/45		2,268,488

St. Joseph Senior Hsg. & Health Care Rev. (Woodcrest of Country Manor Proj.)		1,500,000		5.00		7/1/55		1,337,253

St. Paul Hsg. & Redev. Auth. (Higher Ground Academy Proj.)		1,000,000		5.50		12/1/38		1,031,989

St. Paul Hsg. & Redev. Auth. Health Care Rev. (Carondelet Village Proj.)		725,000		4.25		12/1/27		724,011

St. Paul Hsg. & Redev. Auth. Health Care Rev. (Carondelet Village Proj.)		2,400,000		5.00		12/1/47		2,317,900

St. Paul Hsg. & Redev. Auth. Multifamily Housing Rev. (Marian Center Proj.)		660,000		5.30		11/1/30		660,045


See accompanying notes to financial statements.

MARCH 31, 2026		25

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Minnesota Tax-Free Income Fund (Continued)



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

St. Paul Hsg. & Redev. Auth. Multifamily Housing Rev. (Marian Center Proj.)		2,590,000		5.38		5/1/43		2,498,256

St. Paul Park Senior Hsg. Rev. (Presbyterian Homes Bloomin Proj.)		1,820,000		5.00		9/1/42		1,819,926

Vergas Hsg. & Healthcare Facs. Rev. (CDL Homes Proj.)		1,000,000		4.25		8/1/43		800,820

Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		1,500,000		4.00		8/1/44		1,372,080

Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		1,000,000		5.00		8/1/49		973,429

Wayzata Senior Hsg. Rev. (Folkestone Senior Living Community)		2,750,000		5.00		8/1/54		2,617,597


								80,681,041


Municipal Lease - 3.7% ⁹

Big Lake Economic Dev. Auth. Rev. (Option To Purchase Proj.)		3,825,000		5.00		2/1/52		3,881,652

Minnetonka Independent School District No. 276		1,410,000		2.25		2/1/44		947,440

Minnetonka Independent School District No. 276		1,000,000		2.13		2/1/41		707,267

Minnetonka Independent School District No. 276		750,000		2.38		7/1/51		442,480

MN Hsg. Fin. Agy. Rev.		2,065,000		3.00		8/1/43		1,748,256

MN Hsg. Fin. Agy. Rev. (State Appropriation)		2,000,000		5.00		8/1/34		2,002,705

Northeastern Metropolitan Intermediate School District No. 916		1,000,000		5.00		2/1/34		1,001,837

Pine Island Independent School District No. 255		525,000		2.00		2/1/40		368,388

Pine Island Independent School District No. 255		1,110,000		2.20		2/1/44		722,782

Pine Island Independent School District No. 255		895,000		2.25		2/1/47		550,914

Rum River Special Education Cooperative		1,200,000		5.50		2/1/46		1,212,833

Waconia Independent School District No. 110		500,000		5.00		2/1/37		500,439


								14,086,993


Other Revenue Bonds - 3.5%

Crystal Governmental Facs. Rev.		61,840		5.10		12/15/26		61,162

Northeastern Metropolitan Intermediate School District No. 916		2,500,000		4.00		2/1/38		2,499,973

St. Paul Hsg. & Redev. Auth. Parking Enterprise Rev.		1,000,000		5.25		12/1/43		1,066,887

St. Paul Hsg. & Redev. Auth. Parking Enterprise Rev.		1,000,000		5.25		12/1/44		1,056,498

St. Paul Hsg. & Redev. Auth. Parking Enterprise Rev.		1,000,000		5.25		12/1/45		1,048,763

St. Paul Hsg. & Redev. Auth. Rev. (Amherst H Wilder Foundation Proj.)		2,000,000		5.00		12/1/36		2,061,084

St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (9th St. Lofts Proj.)		32,000		6.38		2/15/28		32,055

St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (North Quadrant Owner Occupied Proj.)		451,000		7.00		2/15/28		456,208

St. Paul Hsg. & Redev. Auth. Tax Increment Rev. (North Quadrant Owner Occupied Proj.)		120,000		7.50		2/15/28		120,355

St. Paul Port Auth. Lease Rev. (Regions Hospital Parking Ramp Proj.)		3,105,000		5.00		8/1/36		3,106,529

Virgin Islands Public Fin. Auth. (Gross Receipts Taxes Loan Note) ¹¹		2,000,000		5.00		10/1/42		1,931,365


								13,440,879


Single Family Mortgage - 21.5%

MN Hsg. Fin. Agy. Homeownership Fin.		7,295,000		2.25		7/1/41		5,463,608

MN Hsg. Fin. Agy. Homeownership Fin.		8,270,000		2.40		7/1/46		5,869,554

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		3,130,000		2.45		7/1/45		2,268,298

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		7,645,000		2.45		7/1/46		5,486,765

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		1,352,550		3.30		5/1/48		1,200,532

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		421,375		3.75		11/1/48		388,812

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		460,817		3.45		3/1/49		413,825

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		745,552		3.15		6/1/49		656,797

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		771,278		2.47		1/1/50		619,136

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		6,210,000		2.55		1/1/51		4,215,908


See accompanying notes to financial statements.

26		FINANCIAL STATEMENTS AND OTHER INFORMATION



Name of Issuer	Principal Amount ($)		Coupon Rate (%)		Maturity Date		Fair Value ($)

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		5,635,000		2.50		7/1/51		3,762,848

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		1,680,000		2.20		7/1/41		1,246,531

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		475,000		2.38		7/1/46		338,770

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		9,340,000		2.45		1/1/52		6,099,355

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		4,530,000		2.63		1/1/40		3,732,032

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		3,410,000		2.75		7/1/42		2,692,551

MN Hsg. Fin. Agy. Homeownership Fin. (GNMA-FNMA-FHLMC)		2,300,000		3.00		7/1/43		1,936,594

MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		22,000		3.80		7/1/38		21,225

MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		3,420,000		2.80		1/1/44		2,719,209

MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		2,250,000		2.70		7/1/44		1,762,234

MN Hsg. Fin. Agy. Residential Hsg. Rev. (GNMA-FNMA-FHLMC)		3,130,000		2.75		7/1/44		2,475,392

MN Hsg. Fin. Agy. Rev. ⁸		945,000		5.35		7/1/36		979,985

MN Hsg. Fin. Agy. Rev.		3,165,000		2.00		7/1/40		2,240,422

MN Hsg. Fin. Agy. Rev.		3,850,000		2.15		7/1/45		2,615,411

MN Hsg. Fin. Agy. Rev.		5,000,000		2.20		1/1/51		3,128,371

MN Hsg. Fin. Agy. Rev.		7,680,000		2.35		7/1/41		5,841,437

MN Hsg. Fin. Agy. Rev.		2,565,000		2.55		1/1/46		1,893,230

MN Hsg. Fin. Agy. Rev.		1,720,000		5.00		7/1/53		1,785,130

MN Hsg. Fin. Agy. Rev.		845,000		6.00		7/1/53		905,379

MN Hsg. Fin. Agy. Rev.		4,750,000		4.60		1/1/47		4,693,437

MN Hsg. Fin. Agy. Rev.		905,000		6.25		1/1/54		979,765

MN Hsg. Fin. Agy. Rev.		1,190,000		5.10		7/1/42		1,247,228

MN Hsg. Fin. Agy. Rev.		1,625,000		5.15		7/1/45		1,648,989

MN Hsg. Fin. Agy. Rev.		1,055,000		6.00		1/1/53		1,120,845


								82,449,605


Transportation - 2.9%

Minneapolis & St. Paul Metro Airport Commission Senior Rev.		500,000		5.00		1/1/41		504,457

Minneapolis & St. Paul Metro Airport Commission Sub. Rev. ⁸		2,500,000		5.25		1/1/49		2,540,318

Minneapolis & St. Paul Metro Airport Commission Sub. Rev. ⁸		3,250,000		5.00		1/1/47		3,269,035

Minneapolis & St. Paul Metro Airport Commission Sub. Rev. ⁸		2,650,000		5.25		1/1/47		2,705,037

Minneapolis & St. Paul Metro Airport Commission Sub. Rev.		1,750,000		4.00		1/1/54		1,529,365

Minneapolis & St. Paul Metro Airport Commission Sub. Rev.		500,000		5.00		1/1/52		503,650


								11,051,862


Utility - 3.2%

Guam Govt. Waterworks Auth. Rev.¹¹		2,000,000		5.00		1/1/46		2,001,231

Guam Govt. Waterworks Auth. Rev. ¹¹		1,000,000		5.50		7/1/55		1,031,928

MN Muni. Gas Agy. Rev.		7,000,000		5.00		9/1/35		7,212,308

Rochester Electric Utility Rev.		500,000		5.00		12/1/42		505,063

St. Paul Port Auth. Rev. ⁸		750,000		5.25		10/1/42		773,387

St. Paul Port Auth. Rev.		650,000		5.00		10/1/46		671,162


								12,195,079


Total Municipal Bonds (cost: $413,053,494)								371,116,439


See accompanying notes to financial statements.

MARCH 31, 2026		27

SCHEDULE OF INVESTMENTS

March 31, 2026

Sit Minnesota Tax-Free Income Fund (Continued)



Name of Issuer	Quantity		Fair Value ($)

Investment Companies - 0.2%

Nuveen Minnesota Quality Municipal Income Fund (NMS)		71,621		873,060


Total Investment Companies (cost: $986,105)				873,060


Total Investments in Securities - 96.9% (cost: $414,039,599)				371,989,499


Other Assets and Liabilities, net - 3.1%				11,884,421


Net Assets - 100.0%				$383,873,920

2	Security considered illiquid by the Investment Adviser. The total value of such securities as of March 31, 2026 was $5,620,595 and represented 1.5% of net assets.

4	144A Restricted Security. The total value of such securities as of March 31, 2026 was $13,424,829 and represented 3.5% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

5	The issuer is in default of interest or principal payments, or other debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2026 was $5,620,595 and represented 1.5% of net assets.

8	Securities the income from which is treated as a tax preference that is included in alternative minimum taxable income for purposes of computing federal alternative minimum tax (AMT). At March 31, 2026, 4.5% of net assets in the Fund was invested in such securities.

9	Municipal Lease Security. The total value of such securities as of March 31, 2026 was $14,086,993 and represented 3.7% of net assets. These securities have been determined to be liquid by the Adviser in accordance with guidelines established by the Board of Directors.

11	The Fund may invest in obligations issued by U.S. territories, for example American Samoa, Guam, Puerto Rico, and Virgin Islands. The total value of such securities as of March 31, 2026 was $6,245,314 and represented 1.6% of net assets.

15	Securities with a “N/A” maturity date have passed their stated maturity date and have pending restructuring arrangements.

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

A summary of the levels for the Fund’s investments as of March 31, 2026 is as follows (see Note 2 - significant accounting policies in the notes to financial statements):


	Investment in Securities

	Level 1 Quoted Prices ($)		Level 2 Other significant observable inputs ($)		Level 3 Significant unobservable inputs ($)		Total ($)

Municipal Bonds		—		371,116,439		—		371,116,439
Investment Companies		873,060		—		—		873,060

Total:		873,060		371,116,439		—		371,989,499

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


See accompanying notes to financial statements.

28		FINANCIAL STATEMENTS AND OTHER INFORMATION

STATEMENTS OF ASSETS AND LIABILITIES

March 31, 2026


	Sit U.S. Government Securities Fund		Sit Quality Income Fund		Sit Tax-Free Income Fund		Sit Minnesota Tax-Free Income Fund
ASSETS
Investments in securities, at identified cost		$205,964,119		$136,490,001		$150,448,163		$414,039,599


Investments in securities, at fair value - see accompanying schedule for detail		$196,438,873		$136,551,096		$122,482,422		$371,989,499
Cash in bank on demand deposit		—		—		6,422,744		9,815,276
Accrued interest and dividends receivable		929,622		941,484		1,831,921		4,360,914
Receivable for investment securities sold		—		6,751		—		22,095
Receivable for Fund shares sold		206,602		4,142		16,249		344,015


Total assets		197,575,097		137,503,473		130,753,336		386,531,799


LIABILITIES
Disbursements in excess of cash balances		—		1,014		—		—
Payable for investment securities purchased		—		—		1,511,528		1,750,000
Payable for Fund shares redeemed		461,356		15,801		125,673		515,883
Cash portion of dividends payable to shareholders		31,354		7,055		86,702		130,181
Accrued supervisory and administrative fees		88,383		46,104		55,965		196,361
Accrued investment management fees		33,777		23,186		22,060		65,454


Total liabilities		614,870		93,160		1,801,928		2,657,879


Net assets applicable to outstanding capital stock		$196,960,227		$137,410,313		$128,951,408		$383,873,920


Net assets consist of:
Capital (par value and paid-in surplus)		$237,461,936		$143,531,379		$189,111,284		$446,834,485
Total distributable earnings (loss), including unrealized appreciation (depreciation)		(40,501,709)		(6,121,066)		(60,159,876)		(62,960,565)


		$196,960,227		$137,410,313		$128,951,408		$383,873,920


Outstanding shares:
Class S Shares (Class S)*		13,181,562		2,704,472		9,380,214		40,160,784

Class Y Shares (Class Y)*		5,853,214		11,601,410		5,478,543		—


Net assets applicable to outstanding shares:
Net Assets (Class S)*		$136,421,592		$25,952,905		$81,410,013		$383,873,920

Net Assets (Class Y)*		60,538,635		111,457,408		47,541,395		—


Net asset value per share of outstanding capital stock:
Net Assets Value (Class S)*		$10.35		$9.60		$8.68		$9.56

Net Assets Value (Class Y)*		10.34		9.61		8.68		—

*	Sit U.S. Government Securities Fund, Sit Quality Income Fund and Sit Tax-Free Income Fund offer multiple share classes (S and Y). Sit Minnesota Tax-Free Income Fund offers a single share class.


		See accompanying notes to financial statements.

FINANCIAL STATEMENTS AND OTHER INFORMATION		29

STATEMENTS OF OPERATIONS

Year Ended March 31, 2026


	Sit U.S. Government Securities Fund			Sit Quality Income Fund			Sit Tax-Free Income Fund			Sit Minnesota Tax-Free Income Fund
Investment income:
Income:
Dividends		—			—			$254,638			$54,520
Interest		$9,341,323			$6,437,788			5,906,918			15,913,889


Total income		9,341,323			6,437,788			6,161,556			15,968,409


Expenses (note 4):
Investment management fee
Class S Shares		290,445			77,852			171,636			749,759
Class Y Shares		118,216			307,390			94,658			—


Total investment management fee		408,661			385,242			266,294			749,759


Supervisory and administrative fee
Class S Shares		871,557			155,703			514,916			2,249,278
Class Y Shares		206,749			358,622			165,647			—


Total supervisory and administrative fee		1,078,306			514,325			680,563			2,249,278


Total expenses		1,486,967			899,567			946,857			2,999,037


Less fees and expenses waived by investment adviser		—			(128,414	)		—			—


Total net expenses		1,486,967			771,153			946,857			2,999,037


Net investment income		7,854,356			5,666,635			5,214,699			12,969,372


Realized and unrealized gain (loss):
Net realized gain (loss) on investments		(566,936	)		248,673			(6,119,906	)		(8,662,481	)
Net realized gain (loss) on futures		—			—			(92,530	)		(364,076	)

Net change in unrealized appreciation (depreciation) on investments		1,261,432			(172,723	)		6,914,156			17,628,592
Net change in unrealized appreciation (depreciation) on futures		—			—			354,935			1,385,314

Net gain (loss)		694,496			75,950			1,056,655			9,987,349


Net increase (decrease) in net assets resulting from operations		$8,548,852			$5,742,585			$6,271,354			$22,956,721


See accompanying notes to financial statements.

30		FINANCIAL STATEMENTS AND OTHER INFORMATION

STATEMENTS OF CHANGES IN NET ASSETS


	Sit U.S. Government Securities Fund						Sit Quality Income Fund
	Year Ended March 31, 2026			Year Ended March 31, 2025			Year Ended March 31, 2026			Year Ended March 31, 2025
Operations:
Net investment income		$7,854,356			$8,578,145			$5,666,635			$5,728,091
Net realized gain (loss) on investments and futures		(566,936	)		(4,170,561	)		248,673			(591,654	)
Net change in unrealized appreciation (depreciation) of investments and futures		1,261,432			7,225,489			(172,723	)		2,119,160


Net increase (decrease) in net assets resulting from operations		8,548,852			11,633,073			5,742,585			7,255,597


Distributions from:
Net investment income and net realized gains
Common shares (Class S)		(5,463,921	)		(6,261,423	)		(1,094,155	)		(1,186,566	)
Common shares (Class Y)		(2,391,814	)		(2,316,974	)		(4,573,251	)		(4,541,524	)


Total distributions		(7,855,735	)		(8,578,397	)		(5,667,406	)		(5,728,090	)


Capital share transactions:
Proceeds from shares sold
Class S Shares		13,753,588			15,387,801			21,953,210			15,669,662
Class Y Shares		9,054,119			9,060,549			29,109,020			54,446,285
Reinvested distributions
Class S Shares		5,034,390			5,773,483			1,073,211			1,162,292
Class Y Shares		2,391,814			2,316,974			4,507,963			4,513,640
Payments for shares redeemed
Class S Shares		(36,754,457	)		(51,781,243	)		(19,404,754	)		(26,408,373	)
Class Y Shares		(9,322,409	)		(19,107,113	)		(35,469,683	)		(48,670,071	)


Increase (decrease) in net assets from capital transactions		(15,842,955	)		(38,349,549	)		1,768,967			713,435


Total increase (decrease) in net assets		(15,149,838	)		(35,294,873	)		1,844,146			2,240,942

Net assets:
Beginning of year		212,110,065			247,404,938			135,566,167			133,325,225


End of year		$196,960,227			$212,110,065			$137,410,313			$135,566,167


Capital transactions in shares:
Sold
Class S Shares		1,322,320			1,500,690			2,285,327			1,649,737
Class Y Shares		869,608			883,322			3,020,788			5,721,540
Reinvested distributions
Class S Shares		484,311			564,598			111,469			122,265
Class Y Shares		230,206			226,677			467,743			473,777
Redeemed
Class S Shares		(3,533,764	)		(5,061,757	)		(2,018,371	)		(2,782,388	)
Class Y Shares		(897,605	)		(1,876,881	)		(3,698,641	)		(5,121,254	)


Net increase (decrease)		(1,524,924	)		(3,763,351	)		168,315			63,677


See accompanying notes to financial statements.

31		FINANCIAL STATEMENTS AND OTHER INFORMATION

STATEMENTS OF CHANGES IN NET ASSETS


	Sit Tax-Free Income Fund						Sit Minnesota Tax-Free Income Fund
	Year Ended March 31, 2026			Year Ended March 31, 2025			Year Ended March 31, 2026			Year Ended March 31, 2025
Operations:
Net investment income		$5,214,699			$5,933,589			$12,969,372			$12,570,680
Net realized gain (loss) on investments and futures		(6,212,436	)		(4,262,354	)		(9,026,557	)		(3,124,076	)
Net change in unrealized appreciation (depreciation) of investments and futures		7,269,091			3,366,906			19,013,906			(4,104,916	)


Net increase (decrease) in net assets resulting from operations		6,271,354			5,038,141			22,956,721			5,341,688


Distributions from:
Net investment income and net realized gains
Common shares (Class S)		(3,341,198	)		(3,501,820	)		(12,969,372	)		(12,570,680	)
Common shares (Class Y)		(1,965,305	)		(2,378,895	)		—			—


Total distributions		(5,306,503	)		(5,880,715	)		(12,969,372	)		(12,570,680	)


Capital share transactions:
Proceeds from shares sold
Class S Shares		9,272,583			14,892,378			61,391,859			77,720,848
Class Y Shares		5,929,416			11,289,682			—			—
Reinvested distributions
Class S Shares		2,984,712			3,167,649			11,507,148			11,117,568
Class Y Shares		1,116,166			1,280,180			—			—
Payments for shares redeemed
Class S Shares		(27,507,322	)		(21,769,538	)		(88,342,210	)		(98,263,345	)
Class Y Shares		(19,834,945	)		(15,882,334	)		—			—


Decrease in net assets from capital transactions		(28,039,390	)		(7,021,983	)		(15,443,203	)		(9,424,929	)


Total increase (decrease) in net assets		(27,074,539	)		(7,864,557	)		(5,455,854	)		(16,653,921	)

Net assets:
Beginning of year		156,025,947			163,890,504			389,329,774			405,983,695


End of year		$128,951,408			$156,025,947			$383,873,920			$389,329,774


Capital transactions in shares:
Sold
Class S Shares		1,069,353			1,702,384			6,512,074			8,172,945
Class Y Shares		677,285			1,296,842			—			—
Reinvested distributions
Class S Shares		346,458			363,908			1,223,413			1,171,643
Class Y Shares		129,614			147,012			—			—
Redeemed
Class S Shares		(3,194,187	)		(2,504,067	)		(9,476,257	)		(10,333,590	)
Class Y Shares		(2,332,487	)		(1,814,075	)		—			—


Net increase (decrease)		(3,303,964	)		(807,996	)		(1,740,770	)		(989,002	)




MARCH 31, 2026		32

FINANCIAL HIGHLIGHTS

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

Sit U.S. Government Securities Fund



Class S	Year Ended March 31,
	2026			2025			2024			2023			2022

Net Asset Value:
Beginning of period		$10.32			$10.17			$10.35			$10.83			$11.17

Operations:
Net investment income ¹		0.39			0.38			0.33			0.27			0.10
Net realized and unrealized gains (losses) on investments and written options		0.03			0.16			(0.17	)		(0.48	)		(0.34	)

Total from operations		0.42			0.54			0.16			(0.21	)		(0.24	)

Distributions from:
Net investment income		(0.39	)		(0.39	)		(0.34	)		(0.27	)		(0.10	)

Net Asset Value
End of period		$10.35			$10.32			$10.17			$10.35			$10.83

Total investment return ²		4.16	%		5.38	%		1.64	%		(1.89	%)		(2.16	%)

Net assets at end of period (000’s omitted)	$	136,422		$	153,834		$	182,150		$	266,067		$	318,439

Ratios: ³
Expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		3.77	%		3.74	%		3.29	%		2.55	%		0.90	%

Portfolio turnover rate (excluding short-term securities)		12.51	%		25.55	%		18.08	%		56.81	%		40.96	%

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

²	Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.

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




MARCH 31, 2026		33

FINANCIAL HIGHLIGHTS

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

Sit U.S. Government Securities Fund



Class Y	Year Ended March 31,
	2026			2025			2024			2023			2022

Net Asset Value:
Beginning of period		$10.31			$10.17			$10.35			$10.83			$11.17

Operations:
Net investment income ¹		0.42			0.41			0.36			0.29			0.13
Net realized and unrealized gains (losses) on investments and written options		0.03			0.14			(0.17	)		(0.47	)		(0.34	)

Total from operations		0.45			0.55			0.19			(0.18	)		(0.21	)

Distributions from:
Net investment income		(0.42	)		(0.41	)		(0.37	)		(0.30	)		(0.13	)

Net Asset Value
End of period		$10.34			$10.31			$10.17			$10.35			$10.83

Total investment return ²		4.42	%		5.55	%		1.91	%		(1.67	%)		(1.91	%)

Net assets at end of period (000’s omitted)	$	60,539		$	58,276		$	65,255		$	91,639		$	109,305

Ratios: ³
Expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		4.03	%		3.99	%		3.54	%		2.80	%		1.14	%

Portfolio turnover rate (excluding short-term securities)		12.51	%		25.55	%		18.08	%		56.81	%		40.96	%

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

²	Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.




34		FINANCIAL STATEMENTS AND OTHER INFORMATION

FINANCIAL HIGHLIGHTS

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

Sit Quality Income Fund



Class S	Year Ended March 31,
	2026			2025			2024			2023			2022

Net Asset Value:
Beginning of period		$9.58			$9.46			$9.46			$9.98			$10.04

Operations:
Net investment income ¹		0.40			0.40			0.37			0.28			0.15
Net realized and unrealized gains (losses) on investments, written options and futures		0.03			0.12			0.01			(0.33	)		(0.05	)

Total from operations		0.43			0.52			0.38			(0.05	)		0.10

Distributions from:
Net investment income		(0.41	)		(0.40	)		(0.38	)		(0.29	)		(0.15	)
From net realized gains		—			—			—			(0.18	)		(0.01	)

Total distributions		(0.41	)		(0.40	)		(0.38	)		(0.47	)		(0.16	)

Net Asset Value
End of period		$9.60			$9.58			$9.46			$9.46			$9.98

Total investment return ²		4.51	%		5.66	%		4.05	%		(0.47	%)		0.92	%

Net assets at end of period (000’s omitted)	$	25,953		$	22,281		$	31,574		$	34,440		$	135,246

Ratios: ³
Expenses (without waiver)		0.90	%⁴		0.90	%⁴		0.90	%⁴		0.90	%		0.90	%
Expenses (with waiver)		0.80	%⁴		0.80	%⁴		0.80	%⁴		0.80	%		—
Net investment income (without waiver)		4.12	%		4.16	%		3.87	%		2.76	%		1.51	%
Net investment income (with waiver)		4.22	%		4.26	%		3.97	%		2.86	%		—

Portfolio turnover rate (excluding short-term securities)		48.23	%		59.03	%		89.98	%		109.93	%		63.03	%

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

²	Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.

⁴	Total Fund expenses are limited to 0.90% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.




MARCH 31, 2026		35

FINANCIAL HIGHLIGHTS

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

Sit Quality Income Fund



Class Y	Year Ended March 31,
		2026			2025			2024			2023	¹

Net Asset Value:
Beginning of period		$9.59			$9.48			$9.48			$9.97

Operations:
Net investment income ²		0.43			0.43			0.40			0.32
Net realized and unrealized gains (losses) on investments, written options and futures		0.02			0.11			—			(0.32	)

Total from operations		0.45			0.54			0.40			—

Distributions from:
Net investment income		(0.43	)		(0.43	)		(0.40	)		(0.31	)
From net realized gains		—			—			—			(0.18	)

Total distributions		(0.43	)		(0.43	)		(0.40	)		(0.49	)

Net Asset Value
End of period		$9.61			$9.59			$9.48			$9.48

Total investment return ³		4.77	%		5.82	%		4.42	%		(0.11	%)

Net assets at end of period (000’s omitted)	$	111,457		$	113,285		$	101,751		$	110,243

Ratios: ⁴
Expenses (without waiver)		0.65	%⁵		—			—			—
Expenses (with waiver)		0.55	%⁵		0.55	%		0.55	%		0.55	%
Net investment income (without waiver)		4.36	%		—			—			—
Net investment income (with waiver)		4.46	%		4.52	%		4.24	%		3.28	%

Portfolio turnover rate (excluding short-term securities)		48.23	%		59.03	%		89.98	%		109.93	%

¹	The inception date of Class Y shares was March 31, 2022.

²	The net investment income per share is based on average shares outstanding for the period.

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

⁴

⁵	Total Fund expenses are limited to 0.65% of average daily net assets. However, during the period above, the investment adviser voluntarily absorbed expenses that were otherwise payable by the Fund.




36		FINANCIAL STATEMENTS AND OTHER INFORMATION

FINANCIAL HIGHLIGHTS

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

Sit Tax-Free Income Fund



Class S	Year Ended March 31,
	2026			2025			2024			2023			2022

Net Asset Value:
Beginning of period		$8.59			$8.64			$8.54			$9.20			$9.91

Operations:
Net investment income ¹		0.33			0.31			0.30			0.27			0.27
Net realized and unrealized gains (losses) on investments and futures		0.10			(0.05	)		0.10			(0.66	)		(0.71	)

Total from operations		0.43			0.26			0.40			(0.39	)		(0.44	)

Distributions from:
Net investment income		(0.34	)		(0.31	)		(0.30	)		(0.27	)		(0.27	)

Net Asset Value
End of period		$8.68			$8.59			$8.64			$8.54			$9.20

Total investment return ²		5.05	%		3.03	%		4.88	%		(4.17	%)		(4.62	%)

Net assets at end of period (000’s omitted)	$	81,410		$	95,858		$	100,185		$	126,041		$	185,151

Ratios: ³
Expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		3.83	%		3.61	%		3.54	%		3.18	%		2.68	%

Portfolio turnover rate (excluding short-term securities)		27.42	%		26.81	%		21.77	%		15.05	%		20.78	%

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

²	Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.




MARCH 31, 2026		37

FINANCIAL HIGHLIGHTS

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

Sit Tax-Free Income Fund



Class Y	Year Ended March 31,
Class Y	2026			2025			2024			2023			Period Ended March 31, 2022 ¹

Net Asset Value:
Beginning of period		$8.59			$8.64			$8.54			$9.20			$10.04

Operations:
Net investment income ²		0.35			0.34			0.32			0.30			0.24
Net realized and unrealized gains (losses) on investments and futures		0.10			(0.06	)		0.11			(0.67	)		(0.84	)

Total from operations		0.45			0.28			0.43			(0.37	)		(0.60	)

Distributions from:
Net investment income		(0.36	)		(0.33	)		(0.33	)		(0.29	)		(0.24	)

Net Asset Value
End of period		$8.68			$8.59			$8.64			$8.54			$9.20

Total investment return ³		5.29	%		3.29	%		5.13	%		(3.93	%)		(6.06	%)

Net assets at end of period (000’s omitted)		$47,541			$60,168			$63,705			$117,115			$169,263

Ratios: ⁴
Expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		4.08	%		3.86	%		3.79	%		3.43	%		3.57	%

Portfolio turnover rate (excluding short-term securities)		27.42	%		26.81	%		21.77	%		15.05	%		20.78	%

¹	The inception date of Class Y shares was June 1, 2021.

²	The net investment income per share is based on average shares outstanding for the period.

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

⁴




38		FINANCIAL STATEMENTS AND OTHER INFORMATION

FINANCIAL HIGHLIGHTS

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

Sit Minnesota Tax-Free Income Fund



	Year Ended March 31,
	2026			2025			2024			2023			2022

Net Asset Value:
Beginning of period		$9.29			$9.47			$9.43			$9.94			$10.68

Operations:
Net investment income ¹		0.32			0.30			0.29			0.27			0.27
Net realized and unrealized gains (losses) on investments and futures		0.27			(0.18	)		0.04			(0.49	)		(0.74	)

Total from operations		0.59			0.12			0.33			(0.22	)		(0.47	)

Distributions from:
Net investment income		(0.32	)		(0.30	)		(0.29	)		(0.27	)		(0.27	)
From net realized gains		—			—			—			(0.02	)		—

Total distributions		(0.32	)		(0.30	)		(0.29	)		(0.29	)		(0.27	)

Net Asset Value
End of period		$9.56			$9.29			$9.47			$9.43			$9.94

Total investment return ²		6.52	%		1.24	%		3.64	%		(2.08	%)		(4.56	%)

Net assets at end of period (000’s omitted)		$383,874			$389,330			$405,984			$466,995			$628,164

Ratios: ³
Expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		3.46	%		3.15	%		3.15	%		2.90	%		2.50	%

Portfolio turnover rate (excluding short-term securities)		20.06	%		10.29	%		5.34	%		8.50	%		20.82	%

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

²	Total investment return is based on the change in net asset value of a share during the period (not annualized) and assumes reinvestment of distributions at net asset value.




MARCH 31, 2026		39

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2026

(1)	Organization

The Sit Mutual Funds covered by this report are Sit U.S. Government Securities Fund, Sit Quality Income Fund, Sit Tax-Free Income Fund and Sit Minnesota Tax-Free Income Fund (each a “Fund” and collectively, the “Funds”). The Funds are no-load funds, and are registered under the Investment Company Act of 1940 (as amended) as diversified (except Sit Minnesota Tax-Free Income Fund which is non-diversified), open-end management investment companies, or series thereof. The Sit Quality Income Fund, Sit Tax-Free Income Fund and Sit Minnesota Tax-Free Income Fund are series funds of Sit Mutual Funds II, Inc. Each Fund has 10 billion authorized shares of capital stock. Shares in the Sit U.S. Government Securities Fund have a par value of $0.01, and shares in other Funds have a par value of $0.001. This report covers the bond funds of the Sit Mutual Funds.

The investment objective for each Fund is as follows:



Fund		Investment Objective
U.S. Government Securities Fund		High current income and safety of principal.
Quality Income Fund		High current income and safety of principal.
Tax-Free Income Fund		High current income that is exempt from federal income tax, consistent with the preservation of capital.
Minnesota Tax-Free Income Fund		High current income that is exempt from federal regular income tax and Minnesota regular personal income tax, consistent with the preservation of capital.

The U.S. Government Securities Fund, Quality Income Fund and Tax-Free Income Fund offer Class S and Class Y shares. Both classes of shares have identical voting, dividend and liquidation rights. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.

(2)	Significant Accounting Policies

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

Investments in Securities

Investment securities are carried at fair value based upon closing market quotations on the last business day of the period. Investments in securities traded on national or international securities exchanges are valued at the last reported sales price prior to the time when assets are valued. Equity securities traded on the over-the-counter market are valued at the last reported sales price or if the last sales price is not available, at the last reported bid price. The sale and bid prices or prices deemed best to reflect fair value quoted by dealers who make markets in these securities are obtained from independent pricing services. Consistent with the Funds’ valuation policies and procedures, the current fair value of certain fixed income securities is provided by an independent pricing service. Fixed income securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from broker-dealers or quotation systems. Securities for which market quotations are not available, such as private placement securities, are valued at fair value according to methods selected in good faith by Sit Investment Associates, Inc. (the “Adviser” or “SIA”) and may include dealer-supplied valuations or other inputs and assumptions that pricing services would typically utilize. Short-term investments of sufficient credit quality with maturities of 60 days or less when acquired, or which subsequently are within 60 days of maturity, are valued at amortized cost, which approximates fair value. Options and futures contracts entered into and held by the Funds are valued at the close of the securities and commodities exchange on which they are traded.

Security transactions are accounted for on the date the securities are purchased or sold. Gains and losses are calculated on the identified cost basis. Interest, including level-yield amortization of long-term bond premium and discount, is recorded on the accrual basis. Amortization of long-term bond premium and discount is calculated using the effective interest rate method. Dividends received from closed-end fund holdings are included in Dividend Income and distributions from capital gains, if any, are included in Net Realized Gain (Loss).




40		FINANCIAL STATEMENTS AND OTHER INFORMATION

Delivery and payment for securities which have been purchased by the Funds on a forward commitment or when-issued basis can take place two weeks or more after the transaction date. During this period, such securities are subject to market fluctuations and may increase or decrease in value prior to delivery.

The Minnesota Tax-Free Income Fund concentrates its investments in Minnesota, and therefore may have more credit risk related to the economic conditions in the state of Minnesota than a portfolio with broader geographical diversification.

Derivative Instruments

The Funds apply derivative instrument disclosure standards in order to enable investors to understand how and why the Funds use derivatives, how derivatives are accounted for, and how derivative instruments affect the Funds’ financial statements.

To hedge interest rate risk, the Funds used Treasury options and futures traded on a U.S. exchange. Risks of entering into futures and options contracts include the possibility of an illiquid market and that a change in the value of the option may not correlate with changes in the value of the underlying securities.

The premiums paid for the options represent the cost of the investment and the options are valued daily at their closing price. The Funds recognize a realized gain or loss when the option is sold or expired. Option holdings within the Funds, which may include put options and call options, are subject to loss of value with the passage of time, and may experience a total loss of value upon expiration. With options, there is minimal counterparty risk to the Funds since they are exchange traded.

Upon entering into a futures contract, a Fund is required to deposit either cash or securities in an amount (initial margin) equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. The Fund recognizes a realized gain or loss when the contract is closed or expired. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.

During the year ended March 31, 2026, the average volume of derivative activity, calculated on a quarterly basis, was as follows:


	Average Cost		Average Premium Received		Average Notional Amount
U.S. Government Securities Fund
Purchased put options	$	114,396		$79,081	$	22,708,750

Tax-Free Income Fund
Treasury futures - short		—		—		3,949,506

Minnesota Tax-Free Income Fund
Treasury futures - short		—		—		15,417,494

Statement of Assets and Liabilities – Values of derivatives as of March 31, 2026:


	Asset Derivatives Value		Liability Derivatives Value

Interest rate risk:
U.S. Government Securities Fund
Put Options Purchased		$120,438¹		—

¹	Statement of Assets and Liabilities location: Investments in Securities, at fair value.




MARCH 31, 2026		41

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2026 (Continued)

The effect of derivative instruments on the Statement of Operations for the year ended March 31, 2026:


	Amount of Realized Gain (Loss) on Derivatives ²		Change in Unrealized Appreciation (Depreciation) on Derivatives³
Interest rate risk:
U.S. Government Securities Fund
Purchased put options		($568,942)		$150,440
Tax-Free Income Fund
Treasury futures		(92,530)		354,935
Minnesota Tax-Free Income Fund
Treasury futures		(364,076)		1,385,314

²	Statement of Operations location: Net realized gain (loss) on investments and net realized gain (loss) on futures, respectively.

³	Statement of Operations location: Net change in unrealized appreciation (depreciation) on investments for purchased put options and net change in unrealized appreciation (depreciation) on futures, respectively.

Fair Value Measurements

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

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

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

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

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

At the end of each calendar quarter, management evaluates the Level 2 and 3 assets and liabilities for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from third party services, and the existence of contemporaneous, observable trades in the market. Additionally, management evaluates the Level 1 and 2 assets and liabilities on a quarterly basis for changes in listings or delistings on national exchanges. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Funds’ investments may fluctuate from period to period. Additionally, the fair value of investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values the Fund may ultimately realize. Further, such investments may be subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities.

A summary of the levels for the Funds’ investments as of March 31, 2026 is included with the Funds’ schedules of investments.




42		FINANCIAL STATEMENTS AND OTHER INFORMATION

Federal Taxes

The Funds’ policy is to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. The Funds have recorded in their financial statements the full benefit of their tax positions taken in connection with the Registered Investment Company (RIC) qualification and distribution requirements of the Internal Revenue Code. Therefore, no income tax provision is required. Also, in order to avoid the payment of any federal excise taxes, the Funds will distribute substantially all of their net investment income and net realized gains on a calendar year basis.

Management has analyzed the Funds’ tax positions taken in federal tax returns for all open tax years and has concluded that as of March 31, 2026, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns remain subject to examination by the Internal Revenue Service and state departments of revenue until such time as the applicable statute of limitations for audit has expired. For example, U.S. tax returns are generally subject to audit for three years from the date they are filed.

At March 31, 2026, the gross unrealized appreciation (depreciation) on investments and cost of investments on a tax basis for federal income tax purposes were as follows:


	Unrealized Appreciation		Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)		Cost (Proceeds) of Investments on a Tax Basis
U.S. Government Securities Fund - Investments		$981,881		($10,723,708)		($9,741,827)		$206,140,170
Quality Income Fund - Investments		986,680		(926,425)		60,255		136,490,841
Tax-Free Income Fund - Investments		1,121,658		(29,183,558)		(28,061,900)		150,544,322
Minnesota Tax-Free Income Fund - Investments		2,802,095		(44,870,318)		(42,068,223)		414,057,722

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes. The character of distributions made during the year from net investment income or net realized gains (losses) may also differ from its ultimate characterization for tax purposes. The tax character of distributions paid during the fiscal years ended March 31, 2026 and 2025 was as follows:


Year Ended March 31, 2026:
	Ordinary Income		Tax-Exempt Income		Long Term Capital Gain		Total
U.S. Government Securities Fund		$7,855,735		—		—		$7,855,735
Quality Income Fund		5,667,406		—		—		5,667,406
Tax-Free Income Fund*		21,530		$5,287,776		—		5,309,306
Minnesota Tax-Free Income Fund*		345,061		12,607,038		—		12,952,099

*99.6% and 97.3% of dividends were derived from interest on tax-exempt securities for the Tax-Free Income and Minnesota Tax-Free Income Funds, respectively.

Year Ended March 31, 2025:
	Ordinary Income		Tax-Exempt Income		Long Term Capital Gain		Total
U.S. Government Securities Fund		$8,578,397		—		—		$8,578,397
Quality Income Fund		5,728,090		—		—		5,728,090
Tax-Free Income Fund*		72,446		$5,821,475		—		5,893,921
Minnesota Tax-Free Income Fund*		158,431		12,441,636		—		12,600,067

*98.8% and 98.7% of dividends were derived from interest on tax-exempt securities for the Tax-Free Income and Minnesota Tax-Free Income Funds, respectively.




MARCH 31, 2026		43

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2026 (Continued)

As of March 31, 2026, the components of distributable earnings on a tax basis were as follows:


	Undistributed Ordinary Income		Undistributed Tax-Exempt Income		Accumulated Gain (Loss)		Unrealized Appreciation (Depreciation)
U.S. Government Securities Fund		—		—		($30,728,528)		($9,741,827)
Quality Income Fund		$8,254		—		(6,182,520)		60,255
Tax-Free Income Fund		—		$42,518		(32,053,792)		(28,061,900)
Minnesota Tax-Free Income Fund		—		49,734		(20,811,895)		(42,068,223)

Net capital loss carryovers and late year losses, if any, as of March 31, 2026, are available to offset future realized capital gains and thereby reduce future capital gains distributions. The Funds are permitted to carry forward capital losses for an unlimited period. Capital losses that are carried forward retain their character as either short-term or long-term capital losses. The net capital loss carryovers and the late year losses deferred as of March 31, 2026, were as follows:


	Unlimited Period of Net Capital Loss Carryover				Late Year Losses		Accumulated Capital and
	Short-Term		Long-Term		Deferred		Other Losses
U.S. Government Securities Fund		$6,080,995		$24,647,533		—		$30,728,528
Quality Income Fund		$2,173,232		$4,009,288		—		$6,182,520
Tax-Free Income Fund		$2,721,107		$29,332,685		—		$32,053,792
Minnesota Tax-Free Income Fund		—		$20,811,895		—		$20,811,895

Distributions

Distributions to shareholders are recorded as of the close of business on the record date. Such distributions are payable in cash or reinvested in additional shares of the Funds’ capital stock. Distributions from net investment income are declared daily and paid monthly for the Funds. Distributions from net realized gains, if any, will be made annually for each of the Funds.

Use of Estimates

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

Guarantees and Indemnifications

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

Cash Balance Credit Risk

The Funds may place portions of its uninvested cash with financial institutions in the United States, which are insured by the Federal Deposit Insurance Corporation (“FIDC”) up to $250,000 for each account holder. The Funds may be subject to credit risk to the extent amounts on deposit are in excess of the insured limits.




44		FINANCIAL STATEMENTS AND OTHER INFORMATION

Segment Reporting

The Funds represent a single operating segment. Subject to the oversight and, when applicable, approval of the Board of Trustees, the Chief Executive Officer of the Adviser (“CEO”) acts as the Funds’ chief operating decision maker (“CODM”), assessing performance and making decisions about resource allocation within the Funds. The CODM monitors the operating results as a whole, and the Funds’ long-term strategic asset allocation is determined in accordance with the terms of its prospectus based on a defined investment strategy. The financial information provided to and reviewed by the CODM is consistent with that presented in the Funds’ financial statements.

(3)	Investment Security Transactions

The cost of purchases and proceeds from sales and maturities of investment securities, other than short-term securities, for the year ended March 31, 2026, were as follows:


	Purchases				Proceeds


	U.S. Government		Other		U.S. Government		Other

U.S. Government Securities Fund		$25,068,137		—		$38,986,131		$80,510
Quality Income Fund		38,780,689		$25,144,370		30,563,578		29,606,679
Tax-Free Income Fund		—		34,373,969		—		57,075,043
Minnesota Tax-Free Income Fund		—		73,018,362		—		81,119,369

(4)	Affiliated Fees and Transactions

Investment Adviser

The Funds each have entered into an investment management agreement with Sit Investment Associates Inc., under which SIA manages the Funds’ assets and provides research, statistical and advisory services, and pays related office rental, executive expenses and executive salaries. In addition, the Funds have entered into separate supervision and administration agreements with SIA. SIA also is obligated to pay all of the Funds’ expenses (excluding extraordinary expenses, stock transfer taxes, interest, brokerage commissions, and other transaction charges relating to investing activities). The fees charged to each Fund by SIA are based on the average daily net assets of the Funds at the annual rate of:


	Investment Management Fees	Supervisory and Administrative Fees	Total Management Fees
U.S. Government Securities Fund Class S	0.20%	0.60%	0.80%
U.S. Government Securities Fund Class Y	0.20%	0.35%	0.55%
Quality Income Fund Class S¹	0.20%	0.60%	0.80%
Quality Income Fund Class Y¹	0.20%	0.35%	0.55%
Tax-Free Income Fund Class S	0.20%	0.60%	0.80%
Tax-Free Income Fund Class Y	0.20%	0.35%	0.55%
Minnesota Tax-Free Income Fund	0.20%	0.60%	0.80%

¹	Effective April 1, 2022, the advisory fee for Sit Quality Income Fund was voluntarily reduced from 0.30% to 0.20%; the fees presented reflect the fees net of the Adviser’s voluntary fee waiver.




MARCH 31, 2026		45

NOTES TO FINANCIAL STATEMENTS

Year Ended March 31, 2026 (Continued)

The fees charged to each Fund by SIA, for the year ended March 31, 2026, were as follows:


	Investment Management Fees	Supervisory and Administrative Fees	Total
U.S. Government Securities Fund Class S	$290,445	$871,557	$1,162,002
U.S. Government Securities Fund Class Y	118,216	206,749	324,965
Quality Income Fund Class S	77,852	155,703	233,555
Quality Income Fund Class Y	307,390	358,622	666,012
Tax-Free Income Fund Class S	171,636	514,916	686,552
Tax-Free Income Fund Class Y	94,658	165,647	260,305
Minnesota Tax-Free Income Fund	749,759	2,249,278	2,999,037

Transactions with affiliates

The Adviser, affiliates of the Adviser, directors and officers of the Funds as a whole owned the following shares as of March 31, 2026:


	Shares		% Shares Outstanding
U.S. Government Securities Fund Class S		141,134		1.1
U.S. Government Securities Fund Class Y		1,204,028		20.6
Quality Income Fund Class S		1,153,345		42.6
Quality Income Fund Class Y		10,728,141		92.5
Tax-Free Income Fund Class S		271,904		2.9
Tax-Free Income Fund Class Y		701,673		12.8
Minnesota Tax-Free Income Fund		1,416,643		3.5

(5)	Recent Accounting Pronouncement

In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires public entities, on an annual basis, to provide income tax disclosures, including income taxes paid dis-aggregated by jurisdiction. This ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The ASU is effective for annual periods beginning after December 15, 2024. Management has determined that there is no impact of the ASU on the Fund’s financial statements.

(6)	Credit Facility

The Funds, together with the 10 equity Sit Mutual Funds managed by SIA, are borrowers in a $20 million credit facility (Credit Facility) maturing November 24, 2026. The Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. Under the terms of the Credit Facility, each Fund shall pay interest charged on any borrowings made by the Fund. During the year ended March 31, 2026, the Funds did not use the Credit Facility.




46		FINANCIAL STATEMENTS AND OTHER INFORMATION

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors

Sit U.S. Government Securities Fund, Inc.

Sit Mutual Funds II, Inc.:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the Sit U.S. Government Securities Fund and Sit Quality Income Fund, Sit Tax-Free Income Fund, and Sit Minnesota Tax-Free Income Fund (each a Series of Sit Mutual Funds II, Inc.) (collectively, the Funds), including the schedules of investments, as of March 31, 2026, the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of March 31, 2026, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2026, by correspondence with custodians, transfer agents and brokers, or by other appropriate auditing procedures when replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/KPMG LLP

We have served as the auditor of one or more Sit Mutual Funds investment companies since 1982.

Columbus, Ohio

May 18, 2026




MARCH 31, 2026		47

Item 8:

Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

None.

Item 9:

Proxy Disclosures for Open-End Management Investment Companies.

None.

Item 10:

Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Fiscal year ended March 31, 2026


Name of Director	Aggregate Renumeration Paid by all 14 of the Sit Mutual Funds
Edward M. Giles	$	59,000
Sidney L. Jones	$	69,000
Bruce C. Lueck	$	59,000
Donald W. Phillips	$	59,000
Barry N. Winslow	$	59,000

Item 11:

Statement Regarding Basis for Approval of Investment Advisory Contract.

During the Registrant’s most recent fiscal year ended March 31, 2026, the Boards of Directors approved the renewal of the investment management agreements with the Sit Mutual Funds. Below is the Boards’ discussion at the October 28, 2025 board meeting of the material factors and conclusions that formed the basis for the board’s approval.

BOARD RE-APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS

At their joint meeting held on October 28, 2025, the Boards of Directors (the “Boards”) of the Sit Tax-Free Income Fund, Sit Minnesota Tax-Free Income Fund, Sit Quality Income Fund and Sit U.S. Government Securities Fund, Inc. (each a “Fund” and collectively, the “Funds”) unanimously approved the continuation for another one-year period of the investment management agreements entered into by and between Sit Investment Associates, Inc. (“SIA”) and each of Sit Mutual Funds II, Inc., dated November 1, 1992; and Sit U.S. Government Securities Fund, Inc., dated November 1, 1992 (collectively, the “Agreements”).

In advance of the October 28, 2025 meeting, the Boards requested and received materials from SIA to assist them in considering the re-approval of the Agreements. The Boards, including all of the Directors who are not “interested persons” (as such term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Funds (the “non-interested Directors”) approved the Agreements after discussion and consideration of various factors relating to both the Boards’ selection of SIA as the Funds’ investment adviser and the Boards’ approval of the fees to be paid under the Agreements. In evaluating the Agreements, the Directors relied upon their knowledge, resulting from their

meetings and other interactions throughout the year, of SIA and its services and personnel. The Directors did not consider any single factor as controlling in determining whether to approve the Agreements, and the items described herein are not all-encompassing of the matters considered by the Directors.

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

Investment Philosophy and Process. The Directors considered SIA’s philosophy around managing assets. With respect to fixed income securities, the Directors noted that SIA stresses the consistent attainment of superior risk-adjusted returns using a conservative investment management approach that seeks to identify pricing anomalies in the market and manage portfolio duration.

With respect to fixed income securities, the Directors considered that SIA seeks securities with a special emphasis on interest income and significant stability of principal value. They noted that SIA’s investment style seeks to avoid excessive return volatility and generate consistent results for the Funds over an economic cycle. The Directors also noted that a component of each Fund’s objective is to seek high current income. The Directors reviewed each Fund’s portfolio characteristics and noted that SIA has consistently managed each Fund in accordance with its investment objective. The Directors noted that, because the Funds emphasize interest income, they may at times not rank highly in total return compared to funds that pursue different investment objectives.

The Directors discussed SIA’s consistent and well-defined investment process. With respect to fixed income securities, the Directors considered that the SIA’s portfolio managers are responsible for implementing the strategy set forth in SIA’s duration targets and interest rate projections.

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

The Directors discussed the depth of SIA’s investment staff, noting that SIA has over 35 investment professionals. Given the investment products offered by SIA and SIA’s amount of assets under management, the Directors determined that SIA’s investment staff is well positioned to meet the current needs of its clients, including the Funds, and to accommodate growth in its number of clients and assets under management for the near future. The Directors concluded that the depth of SIA’s investment staff, and in particular senior management and investment analysts, exceeds the Funds’ current requirement at their present asset size. The Directors noted that SIA has the resources of an investment firm with over $18 billion in assets under management working for the benefit of the Funds’ shareholders. The Directors concluded that SIA has substantial resources to provide services to the Funds and that SIA’s services had been acceptable.

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

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

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

Investment Performance. The Directors reviewed the investment performance of each Fund for the 3-month, 1-year, and 5-year periods ended September 30, 2025, both on an absolute basis and on a comparative basis to indices and mutual funds within the same investment categories. As noted above, the Directors concluded that the investment performance of the Funds has been competitive in relation to funds with similar objectives and strategies.

Fees and Expenses. The Directors noted that the Funds pay SIA a monthly fee and SIA is responsible for all of the Funds’ expenses, except for supervisory and administrative fees paid to SIA pursuant to Supervision and Administration Agreements, interest, brokerage commissions, portfolio transaction charges (including acquired fund fees and expenses) and certain extraordinary expenses. The Directors considered fees paid in prior years and the fees to be paid under the Agreements and Supervision and Administration Agreements, including both before and after fee waivers with respect to Sit Quality Income Fund.

The Directors compared each Fund’s expense ratio to (i) the average and median expense ratios of no-load mutual funds within the same Morningstar, Inc. (“Morningstar”) investment category, (ii) the average expense ratio for load funds within the Fund’s Morningstar category, and (iii) the average expense ratio for all funds within the Fund’s Morningstar category. The Directors also compared each Fund’s management fees to (i) the average and median actual management fees of no-load mutual funds within the same Morningstar investment category, (ii) the average actual management fees for load funds within the Fund’s Morningstar category, and (iii) the average actual management fees for all funds within the Fund’s Morningstar category. Generally, the Funds’ expense ratios were higher than or approximated the averages of the applicable category. The Directors noted that the Morningstar no-load categories include funds of various asset sizes, some of which are significantly larger in assets than the Funds. The Directors concluded that the fees paid by the Funds are reasonable and appropriate.

The Directors reviewed the extent to which the fees to be paid under the Agreements by each Fund may be affected by an increase in the Fund’s assets, which included reviewing each Fund’s current and historical assets and the likelihood and magnitude of future increases in the Fund’s assets. The Directors agreed that it is appropriate that the Funds benefit from improved economies of scale as the Funds’ assets increase. However, the Directors concluded that, given the amount of the Funds’ current assets and the likelihood and magnitude of future increases in the Funds’ assets, a graduated fee structure for each Fund was unnecessary at the time because the fees to be paid under the current Agreements were reasonable and appropriate.

The Directors reviewed the expenses paid by SIA relating to the operations of the Funds, and SIA’s income with respect to its management of the Funds for the past two calendar years. The Directors concluded that the expenses paid were appropriate and that SIA’s profit margin with respect to the management of the Funds was acceptable.

The Directors reviewed SIA’s investment advisory fee schedule for investment management services provided to other clients. The Directors compared the services provided to the Funds and other clients of SIA and its affiliates and recognized that the Funds’ expenses are borne by SIA, except as noted above. The Directors concluded that the fees paid by the Funds in relation to the fees paid by other clients of SIA and its affiliates were appropriate and reasonable.

The Directors discussed the extent to which SIA receives ancillary benefits from its relationship with the Funds, such as soft dollar arrangements by which brokers provide research services to SIA as a result of brokerage generated by the Funds. The Boards concluded that any benefits SIA receives from its relationship with the Funds are well within industry norms, are reflected in the amount of the fees paid by the Funds to SIA and are appropriate and reasonable.

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

Finally, the Directors considered the compliance staff and the regulatory history of SIA and the Funds and concluded that both are acceptable and consistent with industry standards.

Based on these conclusions, without any single conclusion being dispositive, the Directors, including the non-interested Directors by separate vote, determined that renewal of the Agreements was in the interest of each Fund and its shareholders.

Item 12:

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

Not applicable to open-end investment companies.

Item 13:

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 14:

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

Not applicable to open-end investment companies.

Item 15:

Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors since the Registrant last submitted a proxy statement to its shareholders.

Item 16:

Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term in defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b) There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 17:

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 18:

Recovery of Erroneously Awarded Compensation.

None.

Item 19:

Exhibits.

(a)(1) None.

(a)(2) Not applicable.

(a)(3) A separate certification from the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (certification required by Section 302 of the Sarbanes-Oxley Act of 2002) are attached as an exhibit hereto.

(b) The certification required by Rule 30a-2(b) under the Investment Company Act of 1940 (certification required by Section 906 of the Sarbanes-Oxley Act of 2002) is attached as an exhibit hereto.


	Audit Fees (a)		Audit Related Fees (b)		Tax Fees (c)		All Other Fees (d)
Fiscal year ended March 31, 2026	$	34,400		0	$	6,380		0
Fiscal year ended March 31, 2025	$	33,400		0	$	6,170		0


	Page

Schedules of Investments

U.S. Government Securities Fund		2

Quality Income Fund		6

Tax-Free Income Fund		12

Minnesota Tax-Free Income Fund		22

Statements of Assets and Liabilities		29

Statements of Operations		30

Statements of Changes in Net Assets		31

Financial Highlights		33

Notes to Financial Statements		40

Report of Independent Registered Public Accounting Firm		47

Federal Tax Information		48

Additional Information		49


Fund	Percentage
U.S. Government Securities Fund		0.0	%
Quality Income Fund		0.0
Tax-Free Income Fund		0.0
Minnesota Tax-Free Income Fund		0.0


By (Signature and Title)		/s/ Paul E. Rasmussen
		Paul E. Rasmussen
		VP, Treasurer, CCO & Secretary
		Principal Financial Officer



By (Signature and Title)		/s/ Roger J. Sit
		Roger J. Sit
		Chairman and President
		Principal Executive Officer