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Sit Mid Cap Growth NBNGX Sustainability

| Quantitative rating as of | See Sit Investment Hub

Sustainability Analysis

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Sustainable Summary

SIT Mid Cap Growth Fund has a number of positive attributes that a sustainability-focused investor may find appealing.

This strategy holds securities with low exposure to ESG risk relative to those of its peers in the Morningstar US Equity Mid Cap category, earning it the highest Morningstar Sustainability Rating of 5 globes. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.

One key area of strength for SIT Mid Cap Growth Fund is its low Morningstar Portfolio Carbon Risk Score of 6.36 and low fossil fuel exposure of 2.71% over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy. The fund has little exposure (0.50%) to companies with high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

One potential issue for a sustainability-focused investor is that SIT Mid Cap Growth Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.

ESG Commitment Level Asset Manager

An ESG Commitment Level Asset Manager rating is not assigned to this investment.

Morningstar analysts award an ESG Commitment Level Asset Manager ratings to investments that also receive Morningstar Analyst Ratings. Not all investments currently have Asset Manager rating. Morningstar is expanding its coverage, prioritizing investments that are most relevant to investors.