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Investment Club Portfolio Management

The Investment Club manages two endowed funds:

Randall and Nancy Minas Financial Education Center Fund

This endowment fund, as of 12/31/2015 had a value of over $340,000, and will not be commingled with other Indiana State University Foundation Investments.  The Student Investment Club will be under the direction of finance faculty within the College of Business and with oversight of an Investment Committee. This Committee will consist of the donor or his designee[1], an ISU Foundation Representative, an ISU Foundation Investment Committee Member and the Dean of the School of Business or designated representative. This committee will oversee the investment of this endowment.  The Investment Committee would review fund activity each semester and make any decisions they deem necessary to best grow the fund.  Distributions shall be made in accordance with the current spending policies of the ISU Foundation Board of Directors.

James D. Oelschlager Fund

The fund was initiated in 2001 with an endowment of $50,000. The fund had over $100,000 in assets by the end of 2015. This fund provides small annual financial awards to high performing students in the Finance program. The fund will be managed in the same manner as the Randall and Nancy Minas Financial Education Center Fund.

Investment Objectives and Role of Investment Club

The main objective of the club is to help student members’ gain knowledge and experience in investing. In particular, the club will introduce investment methods and practices that promote flexibility and long-term sustainability while underscoring the principles of responsibility and ethical behavior. This policy dictates goals and guidelines that guide the club and its members in regard to responsible management of the assets in the portfolios. The Investment club officers will review the policy statement annually, and decide on any changes through a vote and then approval from the Investment Committee.

Portfolio Investment Guidelines

Asset allocation

Our club recognizes the need for broad-based asset allocation across multiple markets, countries, sectors, industries, and other investment collectives.  The club will focus on multiple areas such as equity building, fixed income, and derivatives.  The over-arching goal of the club in reference to portfolio activity, is to impart knowledge to the officers and analysts of the club regarding fund performance.  Without a doubt, a goal of the club is to obtain positive returns on investments.  Cash will be used as portfolio holdings, fund liquidly needs, or for any planned projects. The Center’s assets will be allocated according to the following distribution:

Equity  
Domestic 0-70%
International 0-20%
Fixed Income  
Investment Grade 0-30%
Below Investment Grade 0-10%
Cash 5-10%

Diversification

The club will diversify its asset holdings to help reduce company specific risk.  In discussing investment opportunities, the Center faculty advisors will encourage exploration, innovative thought, and a free exchange of ideas between members when it comes to investment decisions and the reduction of risk.  Still, guidelines should be in place to ensure that decisions to reduce losses in one area do not reduce the overall diversity of asset holdings.

Rebalancing

The investment club will balance assets by modifying equity, fixed assets, and other asset holdings to adjust the portfolio to the current weights set out by the policy statement.  Deviations will be identified during annual policy statement review, or upon the completion of a revised policy statement.  Rebalancing may be done as necessary as deemed by the faculty advisor.

Monitoring Portfolio Investment and Performance

Weekly reviews will be conducted during the course of the academic year to assess holdings in the portfolio based on sector, capitalization, and other factors.  Student analysts will be assigned a particular sector of value and will monitor that sector within the portfolio. Sector analysts will also provide recommendations in their sector for future changes to the portfolio.  Prior to the end of the spring semester, floors and ceilings will be established to carry the club over the summer break.

Contact Us

Contact Us

Tarek Zaher 
Coordinator and co-founder of the SMIF Consortium
Professor of Finance
Investment Club Advisor
Scott College of Business
Federal Hall, Room 321
Indiana State University
30 N. 7th St., Terre Haute, IN 47809
Phone: 812-237-2093
Tarek.Zaher@indstate.edu

Investment Club President
Corey Maxedon
cmaxedon@sycamores.indstate.edu

Investment Club Vice President
Michael Jones
mjones169@sycamores.indstate.edu

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