Sit US Government Securities Fund (SNGVX)

Finding Best Bond mutual fund is important for investor. Sit US Government Securities fund is part of best short term government taxable bond fund. This fund will be reviewed in details.

Sit US Government Securities (MUTF: SNGVX)

The Sit US Government Securities fund objective is to provide current income and safety of principal. This Sit fund invests exclusively in U.S. government bonds, which are securities issued, guaranteed or insured by the U.S. government, its agencies or instrumentalities. It also invests a substantial portion of assets in pass-through securities. The fund adviser attempts to maintain an average effective duration for the portfolio of approximately 2 to 5 years.

SNGVX Fund Details
  • Fund Inception Date: June 2, 1987
  • Ticker Symbol: SNGVX
  • CUSIP: 829800101
  • Beta (3yr): 0.30
  • Rank in category (YTD): 14
  • Category: Short Government
  • Distribution Rate: 2.99%
  • Net Assets: $ 1.15 billion
  • Sales Load: 0%
  • Expense Ratio: 0.75%
  • Capital Gains: N/A
  • Morningstar Ratings: 5 Stars
  • Number of Years Up: 23 years
  • Number of Years Down: 0 years
  • Average Maturity: 22.1 years
  • Effective Duration: 1.4 years
Updated on 8/30/2011

Sit US Government Securities fund
This top government bond fund manager is Michael C. Brilley. Brilley has managed this fund since its inception in June 1987, 23 years ago. Investor will be charged an annual expense ratio of 0.75%. This figure is a bit lower compared to the average in the Short Government category (0.88%). As explained on the details, there is no 12b1 fee, no front end sales load, and no deferred sales load for this fund. This SNGVX fund has total net assets of $ 1.15 billion. This best bond fund portfolio turnover rate is 45.80% as of August 4, 2011. This is the only class available for this bond mutual fund. The benchmark of this fund is Barclays Capital Intermediate Government Index.

For year to date, the fund has returned 2.58%. This SNGVX fund has 5-stars rating for Morningstar as it has achieved 23 years continuously of positive return since its inception.  This Sit bond fund also features as the best short term government bond fund in US News. The highest total return was in year 2000 with 9.15% and the lowest was in year 2003 with 1.19%. The performance of this fund based on the load adjusted returns is:
  • 1-year: 4.65%
  • 3-year: 5.78%
  • 5-year: 6.06%
  • 10-year: 4.69%
Investing in this fund can be done by opening account in your brokerage or IRA account (retirement account). The initial investment is $5,000 for regular brokerage and $2,000 for IRA account. Subsequent minimum investment will be $100. This SNGVX fund can be purchased through 74 brokerages like E Trade Financials, T Rowe Price, JP Morgan, Common Wealth NTF, Pershing Fund Center, Fidelity Retail Funds Network, Schwab Retail, Firstrade, Investacorp NTF, Ameriprise Brokerage, etc. Please check your brokerage for details.

The top 5 portfolio sector allocation of this fund as of June 2011 is CMO (38.0%), FNMA Pass-Thru (32.1%), FHLMC Pass-Thru (12.5%), GNMA Pass-Thru (8.6%), Cash & Net Other Assets (7.4%), Asset-Backed (1.2%) and U.S. Treasury/ Federal Agency (0.2%).

According to the fund prospectus, the principal risks of investing in this investment fund include:
  • Credit Risk
  • Income Risk
  • Interest Risk
  • Liquidity Risk
  • Management Risk
  • Market Risk
  • Prepayment and Extension Risk
  • U.S. Government Securities Risk
  • Valuation Risk
Disclosure: No Position

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