{"id":234,"date":"2012-03-26T12:08:45","date_gmt":"2012-03-26T19:08:45","guid":{"rendered":"https:\/\/blogschapman.wpenginepowered.com\/business\/2012\/03\/26\/chapmans-student-managed-investment-fund-outperforms-sp-benchmark\/"},"modified":"2012-03-26T12:08:45","modified_gmt":"2012-03-26T19:08:45","slug":"chapmans-student-managed-investment-fund-outperforms-sp-benchmark","status":"publish","type":"post","link":"https:\/\/blogs.chapman.edu\/business\/2012\/03\/26\/chapmans-student-managed-investment-fund-outperforms-sp-benchmark\/","title":{"rendered":"Chapman's Student Managed Investment Fund Outperforms S&P Benchmark"},"content":{"rendered":"

For the second consecutive year, Chapman University\u2019s Student Managed Investment Fund<\/a> has outperformed its benchmark.\u00a0 Established in November 2009 with $1 million and a charter to invest in a portfolio benchmarked to the S&P 500, the fund earned 2.62% in the fiscal year ending September 30, 2011 compared to a 1.14% return on the S&P 500.\u00a0 From inception to September 30, 2011, the SMIF portfolio delivered an annualized return of 6.03% which exceeds the total annualized return on the S&P 500 by 2.21%.\u00a0 This is remarkable since in most years the majority of professionally managed funds fail to match the returns on the S&P benchmark.<\/p>\n

SMIF portfolio managers are students in Chapman\u2019s Portfolio Management course<\/a>. The SMIF managers employ an \u2018enhanced indexing\u2019 approach and make all decisions regarding sector allocation and security selection. \u00a0The process begins with a decision to overweight, underweight, or market weight the 10 sectors of the S&P 500.\u00a0 This is based on valuation and trend analysis and forecasts of economic conditions.\u00a0 Students are assigned to sectors and make presentations in which they formulate and defend their recommendations regarding sector weighting.\u00a0 After discussions among all SMIF members, a decision is made regarding the sector weighting.\u00a0 At this point, the sector positions are taken using S&P sector ETFs.\u00a0 Students then research the constituent stocks in their assigned sector.\u00a0 They perform discounted cash flow analysis and use relative valuation techniques (e.g. P\/E analysis) as the basis for recommending individual stocks for the portfolio.\u00a0 Their recommendations are presented to the SMIF team.\u00a0 Once the individual stock positions have been determined, a portion of the ETF positions are liquidated and the proceeds invested in individual stocks.\u00a0 Forty to fifty percent of the value of the fund is in individual stocks with the balance in S&P sector ETFs.\u00a0 In the most recent year the fund allocated a modest portion of its funds to fixed income ETFs.<\/p>\n

\u201cWe couldn\u2019t be more pleased with the performance of the fund so far,\u201d says Professor Jack Broughton, the faculty advisor and instructor for the Portfolio Management class.\u00a0 \u201cHowever, the real benefit is that the students acquire practical experience that will position them to compete successfully for careers in the investment management industry.\u00a0 Not only are they gaining skills in portfolio management and stock selection, but they are also developing facility with widely used investment tools such as the Bloomberg terminal.\u201d<\/p>\n

As of January 13, 2012, the total value of the SMIF portfolio was $1,249,883.52.\u00a0 In the current year the fund plans to liquidate $150,000 in profits to help finance the construction of a financial trading room in Beckman Hall.\u00a0 Stay tuned for more information!<\/p>\n","protected":false},"excerpt":{"rendered":"

For the second consecutive year, Chapman University\u2019s Student Managed Investment Fund has outperformed its benchmark.\u00a0 Established in November 2009 with […]<\/p>\n","protected":false},"author":357,"featured_media":341,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[11,6,113],"tags":[2,114,115,116,117,118],"class_list":["post-234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-graduate","category-hoag-center","tag-2","tag-hoag-center-2","tag-jack-broughton","tag-mba-finance","tag-smif","tag-student-managed-investment"],"_links":{"self":[{"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/posts\/234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/users\/357"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/comments?post=234"}],"version-history":[{"count":0,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/posts\/234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/media\/341"}],"wp:attachment":[{"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/media?parent=234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/categories?post=234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.chapman.edu\/business\/wp-json\/wp\/v2\/tags?post=234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}