The University of Tulsa Student Investment Fund

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1 The University of Tulsa Student Investment Fund Student Investment Fund Fall 2016 History of Student Investment Fund Since 1997, the Student Investment Fund (SIF) Class has given TU finance majors unparalleled opportunity to apply financial theories and models to portfolio design and management. The SIF provides students with hands-on experience that prepares them for a financial career and allows them the flexibility to develop their own strategies and ideas with less personal risk. Fund earnings have provided more than $847,000 in scholarships to over 200 students. As of November 30, 2016, the fund was valued at more than $4.699 million. Fund Objectives The University of Tulsa Student Investment Fund was established under the premise of providing students with the necessary tools and facilities to gain experience in investment practices. Achieving above average returns is the objective of the SIF which is accomplished by an in-depth analysis. Fund members can select those companies who are leaders in their respective fields and exhibit the probability of strong growth and increasing value. Creating a diversified portfolio of securities helps the SIF realize an optimal risk-return relationship coupled with long-term wealth accumulation. Fall 2016 Student Investment Fund Members Front row (from left to right): Mariyam Khan, Jeanine De Leon-Maestas, Professor Tally Ferguson, Rawan Al Zarrad, Crystal Parrett, Zijun Gu. Back row: Sarah Ward, Babatope Dada, Cheyenne Freelove, Francisco Yanez, Nick McVey, Barkley Wilson, Mohammad Zahid, Denton Lewis, Caitlin Sill

2 Portfolio Performance Update: August 31, 2016 October 31, 2016 Gain/Loss: SIF: $4,679,821 $4,595, % SPY 500: $$ $ %

3 Current Holdings ( ): Symbol Stock Quantity Price Market Value AAPL Apple Inc 1, , ACN Accenture PLC A , BUD Anheuser-Busch InBev SA/NV ADR , CB Chubb Ltd , CCE Coca-Cola European Partners PLC 1, , CNI Canadian National Railway Co 1, , COST Costco Wholesale Corp , CSCO Cisco Systems Inc 1, , CTL CenturyLink Inc 1, , CTSH Cognizant Technology Solutions Corp A , DEO Diageo PLC ADR , E Eni SpA ADR 1, , FDX FedEx Corp , GILD Gilead Sciences Inc 1, , GIS General Mills Inc , IFF International Flavors & Fragrances Inc , INTC Intel Corp 2, , ITW Illinois Tool Works Inc , JNJ Johnson & Johnson , KMB Kimberly-Clark Corp 1, , MA Mastercard Inc A 1, , MDT Medtronic PLC , NKE Nike Inc B 2, , PCLN The Priceline Group Inc 79 1, , PNC PNC Financial Services Group Inc 1, , SBUX Starbucks Corp 2, , SO Southern Co 1, , SPY SPDR S&P 500 ETF 3, , SYK Stryker Corp , TEL TE Connectivity Ltd , TRV The Travelers Companies Inc , UNH UnitedHealth Group Inc , UNP Union Pacific Corp , USB US Bancorp 2, , UTHR United Therapeutics Corp , VGK Vanguard FTSE Europe ETF , VOO Vanguard 500 ETF 4, , VZ Verizon Communications Inc 1, , WFC Wells Fargo & Co , WSO Watsco Inc , XLK Technology Select Sector SPDR ETF , XOM Exxon Mobil Corp 1, , Cash on hand 52, TOTAL $4,699,815.59

4 Investment Strategy: The Investment Fund has a goal of investing long-term, based on fundamental analysis. The fund is limited to large cap stocks, and may have no more than a 5% concentration in any company. The fund is also currently required to keep 30% of its holdings in the SPDR S&P 500 ETF. Within the parameters set forth, the fund seeks growth companies. The Portfolio Accounting Risk (PAR) committee has identified the following investment strategy goals in each sector for the fund this semester: Consumer Discretionary- Market Weight Consumer Staples- Overweight Energy- Market Weight Financials- Market Weight Health Care- Market Weight Industrials- Overweight Information Technology- Market Weight Materials- Underweight Telecommunication Services- Overweight Utilities- Market Weight

5 Stock Update: Name Ticker Sector Industry Recommendation Arthur J. Gallagher AJG Financials Insurance Brokers Eversource Energy ES Utilities Electric Utilities F5 Networks Inc. FFIV Information Technology Leidos Holdings Inc. LDOS Information Technology Communications Equipment Software and Services Walt Disney Company DIS Consumer Discretionary Media Baxter BAX Health Care Equipment and Supplies Potential Buy McCormick and Company MKC Consumer Staples Packaged Goods Mednax Inc. MD Healthcare Outpatient Services Polaris Industries Inc. PII Consumer Discretionary Leisure Products J.M. Smucker Company SJM Consumer Staples Food Products Macro Update: The Macroeconomic committee has closely followed both economic indicators and announcements from the Federal Reserve Bank. It is the consensus of the committee that the economy is still in a period of low stable growth, based on recently released indicators as the unemployment rate, the housing market, and manufacturing numbers. The committee believes that it is likely that the Fed will announce a rate hike in December, which will have a large impact on how the student investment balances its sectors next semester

6 PR Committee Speakers: Bianca Berry Developer Officer at Northwestern Mutual Presented on October 7, Ms. Berry spoke on topic of finding a career with the right company. Gene Kim Credit Market Specialist at Bloomberg Presented on November 3, This was a joint session between Mr. Kim and Mr. Morrissey, both from Bloomberg. Mr. Kim spoke about what aspects he looks for when hiring for the company. Michael Morrissey, CFA Experienced MBS/ABS Professional at Bloomberg Presented on November 3, This was a joint session between Mr. Kim and Mr. Morrissey, both from Bloomberg. Mr. Morrissey spoke about his personal endeavors and adversities when the job market was not hiring.