Southwestern

Engaging Minds, Transforming Lives

Financial Analyst

Objectives

The Fund follows the investment guidelines of the equity funds in Southwestern University’s Endowment Funds: to preserve and expand the purchasing power relative to inflation for the future of Southwestern University.

Brantley Additional objectives of this Fund are as follows:

 

  • The Fund attempts to assume risks similar to those of the Standard and Poor’s 500 Index (S&P 500).  Thus, the Fund attempts to maintain a beta near 1.00.
  • The Fund looks to realize the highest level of return, consistent with its benchmark’s risk level.
  • The Fund seeks a turnover rate of less than 100%.  The Fund needs a healthy rate of turnover to achieve its goal of capital growth, but excessive turnover violates the Fund’s long-term appreciation strategy as well as diminishes returns through transaction costs.
  • The Fund also tries to achieve above average risk-adjusted returns based on the Sharpe and Treynor performance rations.  Positive risk-adjusted returns in both of these measures reflect superior results; therefore, the risk-adjusted returns of each measure should be higher than the S&P 500’s risk-adjusted return.
  • The Fund helps the Managers gain valuable experience in creating and maintaining a portfolio and developing financial analysis skills in a real world situation.
  • An emphasis on buy and sell points to help cut losses by automatically selling portion of our position, or buying additional shares as the stocks cross certain price thresholds.