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Statement of Purpose and Goals For the CBA-ACI Student Investment Fund
PURPOSE
The CBA-ACIF was first established with a donation of ten thousand dollars
($10,000) by a member of the CBA Advisory Council to serve as an opportunity for
students interested in the securities markets to learn through practical
experience. Management of the fund is the principal activity of the Investment
Club of Notre Dame. The management structure of the fund is such that all
members will have an opportunity to participate in the decision making process.
Research teams, made up primarily of club members, will be responsible for
monitoring news and performance of assigned stocks, as well as providing market
research and courses of action. The results of this research will then be
presented to the club members for discussion and recommendations. The final
decision for changes in the fund's portfolio will be made by the Executive
Committee.
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GOALS
1. The main goal of our management of the fund is to preserve capital. The
primary method for accomplishing this is maintaining a cash position of at
least 3%.*
2. We plan to concentrate on how each transaction will benefit the portfolio.
3. Portfolio Diversification:
a. No industry shall compose more than 30% of the fund or
industry/committee group shall compose more than 65%.
b. No individual stock shall compose more than 20% of the fund.*
c. Maintain a 2-5% minimum cash balance at all times.*
d. The fund shall be structured as closely as possible into:
i. Growth Stocks - 60%
ii. Income Stocks - 30%
iii. Cash - 5%
iv. Speculative - 5%
e. The speculative feature may consist of new issues, option, futures and
securities under five dollars. Any speculative interest must receive a
unanimous vote of the Executive Committee.
4. All stock exchanges may be used to buy and sell.
5. Eligible securities include stocks (common and preferred), warrants, bonds,
options, futures, open and closed-end mutual funds, real estate investment
trusts and publicly traded limited partnerships.
* See Statement of Policies and Objectives for details of asset allocation et
cetera
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