Why is there a large gap between imported png and caption?

Question

Why the spacing between the caption and image is large and why it is not where I wanted it but somewhere else? How to make it next to it as I would normally expect a caption to be?

I placed the png as shown:

An overview of the development process is graphically shown:

\begin{figure}
\centering
\includegraphics[height=60mm]{diagram.png}
\caption{Development Framework} \label{Framework}
\end{figure}

\begin{list}{.}{}
\item Mathematica - Monte Carlo pricing development
\item Mathematica server - Initializing FinancialData indices
\item Excel VBA - importing of pre-saved financial data
\end{list}

But location of the image is reversed?

EDIT: I changed from pdf to png file imported.