Fall Semester Report - Trulaske College of Business · PDF fileWelcome Letter from the EO 3...

2016

Fall Semester Report December 9, 2016

Mizzou Investment Fund ESTABLISHED 1967

THIS PAGE INTENTIONALLY LEFT BLANK

The Mizzou Investment Fund

Over the last five years, the Mizzou Investment Fund has earned an annualized return of 8.57%.

For the Fall 2016 semester, the Fund returned 0.64% compared to the S&P 500 Index return of 1.83%.

This portfolio was anchored by especially strong performance in Energy and Industrials.

Table of Contents Fund History 2

Welcome Letter from the CEO 3

Performance Summary 4

Economic Commentary 5

Portfolio Report 8

Executive Team 11

Schedule of Investments 12

Management Team 14

Investment Fund Coordinators 17

Investment Fund Board 17

The Mizzou Investment Fund Semester Report, Fall 2016

Page 1

Fund History

The Board of Curators of the University of Missouri established the Truman

Tracy Memorial Investment Fund in 1967 as a memorial to Professor Truman

Tracy, who passed away earlier that year. Dr. Tracy was the senior investments

professor at the University of Missouri. The Truman Tracy Fund was originally

established with memorial contributions coming from his students, colleagues,

and friends.

In the same year as Tracy’s death, Arie and Ida Crown established the Crown

Memorial Student Investment Fund. Students originally managed the Tracy and

Crown Funds as separate accounts, but the portfolios have since been merged

and are now managed as a portion of the broader pool of assets within the

Mizzou Investment Fund.

Before the Investment Fund Management (IFM) class began, students in the

undergraduate investments and security analysis courses managed the funds.

Since its inception, the portfolio has been actively managed by students, with

the exception of the period from 1980 to 1984 when the funds were passively

managed before Dr. Gary Trennepohl took over as advisor.

The Student Portfolio Analysis and Management Club was formed in 1991. This

club sparked enough interest that eventually a portfolio management course

was created in 1999 to meet the demands of the students. The students

competed in security analysis and portfolio management competitions, and their

strategy presentations earned national awards.

In the Fall semester of 2005, the Department of Finance dedicated a separate

course to manage the Fund, and the Mizzou IFM Program was born. Admission

to the class continues to be competitive. Enrollment is typically limited and

includes both undergraduate and MBA students. In 2006, the Fund saw a large

increase in assets under management, as the IFM class began managing a

portion of the endowment funds given to the college as a gift from Robert J.

Trulaske, Sr. The total value of assets under management by the Mizzou IFM

Program now exceeds $1.4 million and includes funds from the Truman Tracy

Fund, Crown Fund, and Trulaske endowment.

Executive Team

Balaji Sathyamangalam Materials

Michael Logan

Information Technology

Alexander Norman Financials

Anna Rapp

Health Care

Management Team

Jason Blincow Health Care

Sarah Gregory

Industrials

Jake Humphries Financials

Vivek Kaushik

Energy

Fis Malesori Telecommunications & Utilities

Ralph Miller

Consumer Discretionary

Ryan Schultz Consumer Staples

Greg Stringfellow


Jack Thornton Energy

Fund Coordinators

Stephen Ferris, Ph.D. Interim Dean

John Howe, Ph.D.

Finance Department Chair

Michael O’Doherty, Ph.D. Associate Professor


Page 2

Performance* IFM S&P 500

Inception** 5.98% 11.55%

Three Year** 1.77% 9.07%

Semester 0.64% 1.83%

Portfolio Characteristics

Assets Under Management $1,445,216

Number of Equity Holdings 26

Beta 1.07

Dividend Yield 1.74%

*Performance as of 11/30/16

**Annualized Figures

Welcome Letter from the CEO

It is my honor and pleasure to address you as the CEO of the Mizzou Investment

Fund and to provide you with an update about the current state of our portfolio.

Overview

The Mizzou Investment Fund is a portion of the University of Missouri’s

endowment and is an actively managed portfolio of equity securities. The

portfolio is managed by a talented group of undergraduate and MBA students

from the Trulaske College of Business who participate in the Investment Fund

Management (IFM) Program. This class offers students the unique opportunity

to participate in a real-world portfolio management experience.

The first part of the Program introduces students to the equity research and

valuation methods used by professional analysts. During the latter half of the

course, students conduct in-depth research on potential equity investments,

prepare professional-quality analyst reports, and present their

recommendations to the class. After a healthy debate, the management team

votes on whether to buy, hold, or sell a given name.

Strategy and Performance

At the beginning of the semester, given the political uncertainty and the low

interest rate environment, our management team decided to increase our

exposure to the Consumer Staples and Financials sectors while reducing our

holdings in Consumer Discretionary and Health Care. This strategy motivated us

to exit our positions in Williams-Sonoma, Inc. (NYSE: WSM) and La-Z-Boy

Incorporated (NYSE: LZB) as a hedge against weakness in consumer

discretionary spending.

Our intention was to create and maintain a long-term, value oriented portfolio

of stocks with sustainable competitive advantages in their respective sectors.

We accomplished this goal by adding companies with strong brand recognition

such as Starbucks Corporation (NASDAQ: SBUX) and NIKE, Inc. (NYSE: NKE).

Although the portfolio’s short-term performance during the past three months

has not been exceptional, I believe that these decisions will enable the portfolio

to achieve superior long-term returns in the future. In the words of our

President-elect, we have made every effort to “make the portfolio great again”!

Conclusion

I am thankful for having had the opportunity to serve as CEO of the Fund this

semester. I enjoyed the experience of leading class discussions and working with

my colleagues to select equity investments of high quality for our portfolio. I

hope that you find the rest of this report informative and enjoyable.

Sincerely,

Balaji R. Sathyamangalam


Page 3

Balaji Sathyamangalam

CEO

Performance Summary Returns as of November 30, 2016

Inception*,** 3 Yr* Semester 5 Yr* YTD

Mizzou Investment Fund 5.98% 1.77% 0.64% 8.57% 3.40%

S&P 500 Index 11.55% 9.07% 1.83% 14.45% 9.80%

Top 10 Equity Holdings % of Portfolio Growth of $10,000 Investment

Sector Allocation

Berkshire Hathaway Inc. 7.14%

Apple Inc. 6.85%

Procter & Gamble Co/The 5.14%

Qualcomm Inc. 5.07%

Honeywell International Inc. 4.73%

Helmerich & Payne Inc. 4.17%

T-Mobile US Inc. 3.94%

CitiGroup Inc. 3.90%

Nike Inc. 3.81%

Schlumberger LTD 3.81%

*Annualized Figures ** Inception Date: February 28, 2011


Page 4

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2/28/2011 10/31/2012 6/30/2014 2/29/2016

IFM Portfolio S&P 500 Index


15.47%

Consumer Staples

13.78%

Energy

7.98%

Financials

11.04%Health

Care

6.71%

Industrials

11.89%


19.11%

Materials 3.20%

Real Estate 2.44%

Telecommunications 3.94%

Uti l ities 3.04%Cash

1.40%

Economic Commentary

Market uncertainty is the inherent challenge faced by an actively managed fund,

and ours is no exception. In recent months, markets have been rocked by both

geopolitical and economic factors, with the most notable geopolitical influences

coming from Britain’s referendum to leave the European Union (“Brexit”) and

the United States Presidential election. Both of these events sent ripples

through the financial realm. On June 24th, the day following Brexit, the British

pound sterling fell 8% against the U.S. dollar. In mid-October, the pound sterling

hit a relative bottom and was down 18.5% since the vote. As for the U.S.

election, the market had priced in a Clinton victory, so when a Trump upset

became apparent, S&P 500 futures fell 5% and triggered a trading halt to limit

losses. The hours between the election result being announced and the

beginning of trading on November 9th were the epitome of uncertainty and fear.

As investors digested the information, markets rebounded substantially, with

the S&P not only erasing its losses, but finishing up 1.1%. In addition to these

two political shake-ups, we have continued to see uncertainty from the Federal

Reserve on potential interest rate hikes. The Fed’s meetings each month have

put investors on the edges of their seats, but we have yet to see a rate hike this

year. Janet Yellen’s remarks to Congress on November 17th suggest that the Fed

is strongly considering a hike during their mid-December meeting.

Although the aforementioned uncertainties are formidable, a well-designed

portfolio should be able to counterbalance any short-term effects with long-

term growth. The management team indeed saw these macroeconomic factors

as challenges, but we took a big-picture approach to identify the following

themes for the fund:

1. Higher than average uncertainty at both the national and global levels

makes defensive positioning more advantageous. Our portfolio risk had to

be addressed through diversification and evaluating companies based on

their likeliness of long-term success.

2. The U.S. economy is growing, but not rapidly. Long-term economic

growth projections by the Organization for Economic Cooperation and

Development suggest a decline in year-over-year GDP growth to

approximately 2%—down from the US historical average of 3.2%.

3. Consumer sentiment has recovered to pre-recession levels. This

improvement indicates consumers are satisfied with future expectations of

the economy and are consequently spending more money relative to

saving. However, sentiment has declined since the beginning of 2015.

Based on these themes, our research and analysis process focused on

emphasizing long-term value, reallocating to balance cyclical and counter-

cyclical securities, and selecting defensive equities within each sector. This

effort is evidenced by additions to the portfolio like Starbucks Corporation

(NASDAQ: SBUX). This security is classified as a Consumer Discretionary name,

but consumer coffee spending and historical stock performance indicate

similarities to Consumer Staples.


Page 5

U.S. Consumer Price Index YOY Percent

Michael Logan

Economist

U.S. Consumer Confidence Index

94

96

98

100

102

1/1/2005 5/1/2008 9/1/2011 1/1/2015

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

10/1/2011 5/1/2013 12/1/2014 7/1/2016

Central Banks & Interest Rates

Government bonds across the world continue to trade at record low yields.

Mixed economic data in the U.S. has presented the Fed with the challenge of

not raising rates too early, while also not waiting too long. GDP and consumer

spending have both been growing at modest rates, but job growth has remained

below the suggested target of 200,000 monthly net increase. Although June and

July achieved over 250,000 net jobs added, the fear of Brexit halting the global

economy worried the Fed enough to hold off. But while the U.S. waits for an

increase in interest rates, which will likely come in December, Europe and Japan

have both seen negative rates. This strategy has not been effective in either

case, as evidenced by slow economic growth in these regions.

Inflation has remained low, driven predominately by oversupply of commodities

like oil. For the 12 months ending October 2016, inflation was 1.6%. This figure

is just below the Federal Open Market Committee’s target of 2%. However, it is

the highest trailing twelve month rate for the entire year. If the inflation rate

continues this trend, it would further support a December rate hike.

U.S. Labor Market

The U.S. job market has been strengthening over the past five years, as shown

by several indicators. Unemployment continues to remain low. The general

target is 4-6%. This range protects against hyperinflation that occurs from wage

pressure and economic recession driven by excessive unemployment. The

monthly unemployment rate has held at or below 5% since October 2015. The

Federal Reserve’s policies of Quantitative Easing and near-zero interest rates

were intended to swiftly counter rising unemployment following the 2007

recession. Although the recovery was not as quick as hoped for, the recent data

suggests stabilization at historical averages. There is further evidence for labor

market strength in the “quits” rate, which indicates how confident workers are

in leaving their jobs in pursuit of other opportunities. The quits rate was nearly

halved by the recession, but has been rising steadily since 2010. This indicator

has lead us to believe that the overall health of the U.S. economy is improving.

Energy

Over supply of oil has significantly impacted the energy market over the past

two years. In the summer of 2014, oil was trading at over $100 per barrel. By

the end of October 2016, West Texas Intermediate was below $50 per barrel.

The sharp decline at the beginning of 2015 was driven by several factors

including a strong U.S. dollar, oversupply caused by production increases in the

U.S. and OPEC, and a decline in global demand. Analysts forecasted a short-term

glut, followed by a steady climb back to previous prices. However, we are two

years down the road, and oil prices remain at historical lows. This new trend has

caused us to adjust our outlook on the value of the supply chain for oil

production. Exploration and distribution have seen the most direct impact on

their bottom lines. Midstream companies have not been as negatively impacted,

because their contracts are usually based on volume of oil, rather than selling

price. Additionally, renewable energy companies, like solar-powered battery

manufacturers, have become less desirable. The technology is still developing,


Effective Federal Funds Rate

Page 6

Trade Weighted U.S. Dollar Index

Unemployment Rate vs. Quits Rate

0.00%

5.00%

10.00%

1/1/2000 1/1/2005 1/1/2010 1/1/2015

80

100

120

140

1/1/2000 1/1/2005 1/1/2010 1/1/2015

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1/1/2006 5/1/2009 9/1/2012 1/1/2016

Qu

its

Ra

te

Un

em

plo

yme

nt R

ate

Unemployment Quits

and low gas prices keep consumers from making the switch to more sustainable

energy sources.

Housing

Housing starts have been steadily trending upward in the U.S. following the

complete collapse of the housing market in 2007. This past October posted the

best numbers since the bottom in 2009, with new home starts exceeding 1.3

million. The numbers are still not near historical averages, but the upward trend

is definitely a positive. Our management team is concerned for the long-term,

however, as a generational preference shift is occurring. Millennials are waiting

considerably longer than Baby Boomers did to buy a house. On average,

Millennials will rent for six years before settling down. The average age of

homebuyers has consequently been inching up since 1980, from 31 to 33. If this

trend continues, housing developments will likely remain near current levels and

establish a new average. This implies that consumer spending on home

furnishings should decrease too, as Millennials put off major purchases.

Our fund seeks value in overlooked equities, and our principled approach aims

to generate long-term growth by acknowledging short-term fluctuations as

unavoidable. The overall economic outlook is littered with uncertainties, but we

are anchored in stability.

Sincerely,

Michael P. Logan


Price of WTI Crude Oil

U.S. Housing Starts (X1000)

Page 7

$-

$50

$100

$150

1/1/2006 5/1/2009 9/1/2012 1/1/2016

0

1000

2000

3000

1/1/2005 5/1/2008 9/1/2011 1/1/2015

Alexander Norman

Portfolio Manager

Portfolio Report

The year 2016 was remarkable for equity markets. Commodity price fluctuations,

monetary policy uncertainty, and an unusual presidential election have proven

challenging for the IFM class. Nonetheless, I am proud of the management team

that we have this semester, and I believe that the portfolio is well positioned

going into 2017. We employ what we hope is a market-beating strategy that

focuses on shifting resources to large, well-run companies and capitalizing on a

strong but mature U.S. economy.

Investment Strategy

This semester the IFM team emphasized a defensive stock picking approach,

while also identifying sectors and economic opportunities where we wanted

exposure. Our strategy consisted of three overarching goals: identify and increase

exposure to defensive companies with strong operating histories, identify and

overweight sectors that we believe are poised for outperformance, and maintain

adequate diversification.

Given the high degree of geopolitical and monetary uncertainty, we made

permanent loss avoidance a high priority. We accomplished this by revisiting

holdings in Consumer Discretionary, Financials, and Health Care. We moved away

from small- and mid-cap companies that we perceived to have low growth

prospects, and we rotated into large-cap companies with consistent operating

performance and attractive valuations.

A key goal for the IFM team this semester was to maintain adequate, but not

excessive, diversification. Our team identified and took advantage of opportunity

in the Telecommunications sector, an area in which we had no exposure at the

beginning of the semester. We also reduced the number of equity holdings from

28 to 26. This strategy included divesting our position in the Vanguard REIT ETF

(NYSE: VNQ). We believed that capital invested in this ETF would be better suited

to making more concentrated bets elsewhere.

Our team agreed that slow but steady growth in the U.S. economy was likely to

continue. As such, we sought to overweight sectors driven by consumer spending,

including Consumer Staples and Consumer Discretionary. Additionally, we

attempted to take advantage of the rising interest rate environment by changing

our holdings in the Financials sector.

Portfolio Snapshot

Currently, the fund consists of 26 individual stocks, with one small-cap, five mid-

caps, and twenty large-caps. The portfolio’s beta is 1.07, and the current dividend

yield is 1.74%.

Sector Highlights

Consumer Discretionary. Our team felt that Consumer Discretionary presented

opportunities that were difficult to pass up. We recognized the relative risk of the

sector, given slow, steady growth in the U.S. However, we felt that we could take

targeted risk by eliminating smaller holdings with questionable growth prospects


Page 8

Top Five Holdings

Company Weight

Berkshire Hathaway Inc. 7.14%

Apple Inc. 6.85%

The Procter & Gamble Company 5.14%

Qualcomm Inc. 5.07%

Honeywell International Inc. 4.73%

Company Weight

Magna International Inc. 1.88%

The CBRE Group Inc. 2.44%

Mondelez International Inc. 2.61%

CVS Health Corporation 2.66%

Gilead Sciences Inc. 2.98%

Bottom Five Holdings

and replacing them with strong companies at attractive price points. The fund

added a position in Starbucks Corporation (NASDAQ: SBUX). Starbucks offers

exposure to a globally recognizable brand in the growing specialty coffee

industry. Coffee has become more of a staple as consumers rely on it to get

through their day. Starbucks has been able to capitalize on this trend to grow

their business, and we believe that they are well positioned for future

sustainable growth. Additionally, we took up a position in NIKE, Inc. (NYSE: NKE).

The company offers another strong household brand at an attractive valuation.

Nike has a sustainable competitive advantage in terms of market share, and the

company has above average ROE and ROA as well as strong margin growth. We

liquidated positions in both Williams-Sonoma Inc. (NYSE: WSM) and La-Z-Boy

Incorporated (NYSE: LZB). Increasingly poor operating performance and stiff

competition have plagued both La-Z-Boy and Williams-Sonoma. Additionally,

both companies rely heavily on large, infrequent purchases and have sales that

are strongly correlated with the slow-growth housing market.

Consumer Staples. Our team recognizes the defensive nature of the Consumer

Staples sector and, given the state of the U.S. economy and current uncertainty,

we maintain relatively high exposure to this sector. We added Mondelez

International Inc. (NASDAQ: MDLZ) and CVS Health Corportion (NYSE: CVS),

while divesting of our holdings in Tyson Foods Inc. (NYSE: TSN). Our team agreed

that CVS, while technically classified under Consumer Staples, offers exposure to

the Health Care sector. CVS is focused on becoming a fully integrated health

care services company. We believe that the company’s strategy, combined with

its consistent operating history and diversification benefits, make CVS a valuable

addition to the portfolio. Mondelez offers a strong brand portfolio and

international exposure to the snack foods market. The company’s earnings have

been negatively affected by the strength of the U.S. dollar, and we considered

this a buying opportunity. Additionally, Mondelez recently enacted cost cutting

measures, and the company is working to grow earnings in emerging markets.

Tyson Foods, on the other hand, has been the subject of recent price fixing

allegations, and we believe that these allegations may have merit. We felt that

Tyson presented unnecessary risk to the portfolio, and we subsequently decided

to exit our position.

Financials. Given the current rising interest rate environment, the team felt that

exposure to the banking industry would earn outsized returns. As such, we

added Citigroup Inc. (NYSE: C) to the portfolio. We feel that Citigroup’s large size

and attractive valuation make it a safe play for future rate increases.

Additionally, we divested of our holdings in Manning & Napier Inc. (NYSE: MN)

and LendingClub Corporation (NYSE: LC). Both Manning & Napier and

LendingClub presented company-specific issues that we felt brought each firm’s

long-term prospects into question and nullified previous investment theses.

LendingClub recently experienced a scandal involving the CEO that affected the

company’s reputation and may weaken long-term profitability. As an asset

manager, Manning & Napier has seen persistent capital outflows and poor

returns.


Page 9

0.00%

10.00%

20.00%

30.00%

OperatingMargin

ROA ROE

Industry Avg. Nike, Inc. (2015)

Nike, Inc. Key Metrics

Current Weights Relative to Benchmark

CVS Health Corporation Revenue Breakdown

Health Care. The team felt that the Health Care sector was relatively attractive

given the aging U.S. population, but we were also concerned about

overexposure to the volatile pharmaceutical industry. We therefore divested

our holdings in Portola Pharmaceuticals Inc. (NYSE: PTLA), as we felt that Gilead

Sciences Inc. (NASDAQ: GILD) provided adequate exposure to pharmaceuticals.

Team Health Holdings Inc. (NYSE: TMH) agreed to be acquired by The Blackstone

Group L.P. (NYSE: BX), and we subsequently sold our stake. We maintain

additional health care exposure through CVS Health.

Real Estate. As of September 2016, Real Estate split off from Financials into its

own GICS sector. The CBRE Group Inc. (NYSE: CBG) is our only holding in the new

sector. We also removed the Vanguard REIT ETF from the portfolio.

Telecommunications. At the start of this semester, we had no holdings in the

traditionally defensive Telecommunications sector. We felt that this presented

an opportunity for diversification, and we added T-Mobile U.S. Inc. (NASDAQ:

TMUS) to the portfolio. We believe that T-Mobile’s steady growth, impressive

strategic position, and high customer retention make it the best player in

Telecom.

Sincerely,

Alexander Norman


Page 10

Portfolio S&P 500 Index

P/E (NTM) 16.59 16.93

Price/CF 11.72 13.81

Price/Book 2.63 3.01

Return on Equity 18.98 25.59

Dividend Yield 1.74% 2.00%

Portfolio Key Statistics

Number of Holdings by Size

20

5

1

0

5

10

15

20

25

Large-Cap Mid-Cap S mall-Cap

Balaji Sathyamangalam, CEO, is a Crosby MBA student with an emphasis in

Finance, graduating in May of 2017. He obtained a Bachelor of Engineering from

the University of Madras, as well as a Master of Science in Engineering from the

University of Texas at Austin. Previously, he worked as an electrical engineer and

consultant in the U.S. and New Zealand. Currently, he works as an instructor in

the Trulaske College of Business and as a Fixed Income Investments intern at

Shelter Insurance Companies. Upon graduation, Mr. Sathyamangalam hopes to

find a full time position in asset management.

Michael Logan, Economist, is a Crosby MBA student with an emphasis in

Finance, graduating in May of 2017. He obtained a Bachelor of Finance from

Oklahoma State University. Previously, he worked as a Financial Systems

Specialist at Bayshore Management Association and as a Finance and IT Intern at

the University of Florida. Currently, Mr. Logan works as a graduate instructor at

the University of Missouri. Upon graduation, Mr. Logan hopes to find a full time

position in consulting.

Alexander Norman, Portfolio Manager, is a senior in the Trulaske College of

Business, graduating in December of 2016. Mr. Norman is working towards a

Bachelor of Science in Business Administration with an emphasis in Finance and

Banking and a minor in Economics. Currently, Mr. Norman is working in the

Reynolds Journalism Institute as a Student Business Assistant. Upon graduation,

Mr. Norman hopes to find a full time position in investment banking, investment

research, asset management or consulting.

Anna Rapp, External Relations Chair, is a senior in the School of Arts and

Sciences, graduating in December of 2016. She is pursuing a Bachelors of Arts in

Economics and a minor in Business. Previously, she worked at J.P Morgan Chase &

Co. as a Private Wealth Management intern. Currently, she works as a teaching

assistant in the Economics department. Upon graduation, Ms. Rapp plans to

return to J.P. Morgan Chase & Co. as a Private Wealth Management Analyst in

Boston, MA.

Executive Team


Page 11

Schedule of Investments

Shares Value ($) Percent of net assets

As of November 30, 2016


APPLE INC 896 99,025.92 6.85%

COGNIZANT TECHNOLOGY SOLUTIONS CORP 950 52,326.00 3.62%

QUALCOMM INC 1,075 73,239.75 5.07%

ARRIS INTERNATIONAL PLC 1,800 51,642.00 3.57%

276,233.67 19.11%


MAGNA INTERNATIONAL INC 670 27,101.50 1.88%

NIKE INC 1,100 55,077.00 3.81%

NORDSTROM INC 790 44,176.80 3.06%

STARBUCKS CORP 780 45,216.60 3.13%

WALT DISNEY CO 525 52,038.00 3.60%

223,609.90 15.47%

Financials

BERKSHIRE HATHAWAY INC 655 103,123.20 7.14%

CITIGROUP INC 1,000 56,390.00 3.90%

159,513.20 11.04%

Energy

HELMERICH & PAYNE INC 796 60,217.40 4.17%

SCHLUMBERGER LTD 655 55,052.75 3.81%

115,270.15 7.98%

Materials

MOSAIC CO/THE 1,630 46,292.00 3.20%

46,292.00 3.20%

Consumer Staples

CVS HEALTH CORP 500 38,445.00 2.66%

DIAGEO PLC 481 48,696.44 3.37%

MONDELEZ INTL INC 915 37,734.60 2.61%

PROCTER & GAMBLE 900 74,214.00 5.14%

199,090.04 13.78%


Page 12

Schedule of Investments

Shares Value ($) Percent of net assets

Industrials

HONEYWELL INTERNATIONAL INC 600 68,364.00 4.73%

PRIMORIS SERVICES CORP 2,085 47,809.05 3.31%

QUANTA SERVICES INC 1,651 55,671.72 3.85%

171,844.77 11.89%

Health Care

GILEAD SCIENCES INC 585 43,114.50 2.98%

MCKESSON CORP 375 53,928.75 3.73%

97,043.25 6.71%

Utilities

EVERSOURCE ENERGY 850 43,877.00 3.04%

43,877.00 3.04%

Telecommunication

T-MOBILE US INC 1,050 56,920.50 3.94%

56,920.50 3.94%

Real Estate

CBRE GROUP INC 1,216 35,312.64 2.44%

35,312.64 2.44%

Cash

20,208.88 1.40%

20,208.88 1.40%

Net Asset Value 1,445,216.00 100%


Page 13

Jason Blincow is a senior in the Trulaske College of Business, graduating in

December of 2016. Mr. Blincow is currently working towards a Bachelor of

Science in Business Administration with an emphasis in Finance and Banking.

Previously, he interned at Cushman & Wakefield as well as BMO Capital

Markets. Upon graduation, Mr. Blincow plans to return to BMO Capital

Markets as an analyst.

Sarah Gregory is a senior in the Trulaske College of Business, graduating in

December of 2016. Ms. Gregory is currently working towards a Bachelor of

Science in Business Administration with a dual emphasis in Finance and

Banking, and Economics. Previously, she worked at Global Project

Management Office, RSM US LLP as a Management Consulting intern. Upon

graduation, Ms. Gregory hopes to find a full time position within Management

Consulting and Business Strategy Development.

Jake Humphries is a senior in the Trulaske College of Business, graduating in

December of 2016. Mr. Humphries is currently working towards a Bachelor of

Science in Accounting. Previously, he worked at Deloitte as an intern. Upon

graduation, Mr. Humphries plans to return to Deloitte to work with their audit

team.

Vivek Kaushik is a Crosby MBA student with an emphasis in Finance,

graduating in May of 2017. He obtained a Bachelor of Engineering in

Electronics and Telecommunications from University of Pune. Previously, he

worked as a Credit Analyst for Union Bank of India. He is currently working as a

Research Assistant at the University and as a part-time Investment Analyst at

Missouri State Employee’s Retirement System. Upon graduation, Mr. Kaushik

hopes to find a full time position in banking.

Management Team


Page 14

Management Team

Fis Malesori is a Crosby MBA student with an emphasis in Finance, graduating

in May of 2017. He obtained a Bachelors of Arts in Management and

Informatics from the University of Prishtina—Republic of Kosovo. Previously,

he worked as a financial advisor and a start-up consultant. Upon graduation,

Mr. Malesori hopes to find a full time position in the Energy Sector and Angel

Investments.

Ralf Miller is a Crosby MBA student with an emphasis in Finance, graduating

in May of 2017. He obtained a Bachelor of Science in Systems Engineering and

a minor in Japanese from the United States Naval Academy. Previously, he

served as a nuclear engineer and operations director on the USS California

(SSN-781) and interned at Edward Jones as a financial advisor intern. Upon

graduation, Mr. Miller hopes to find a full time position in investment

management or as a financial advisor.

Ryan Schultz is a senior in the Trulaske College of Business, graduating in May

of 2017. Mr. Schultz is pursuing a Bachelor of Science in Business

Administration with an emphasis in Finance and Banking and a minor in

Financial Planning. Previously, he interned at Aldi as a district manager. Upon

graduation, Mr. Schultz plans to work for Dish Network in Denver, Colorado as

a Financial Analyst.

Greg Stringfellow is a senior in the Trulaske College of Business, graduating in

May of 2017. Mr. Stringfellow is currently working towards a Bachelor of

Science in Business Administration with an emphasis in Finance and Banking.

Previously, he worked at J.P. Morgan Chase & Co. as a Private Wealth

Management intern in Dallas, TX. He has also been involved in Tigers on Wall

Street as both a participant and an advisor. Upon graduation, Mr. Stringfellow

plans to return to J.P Morgan as a Private Wealth Management Analyst in

Dallas, TX.


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Management Team

Jack Thornton is a Crosby MBA student with an emphasis in Finance,

graduating in May of 2017. He obtained a Bachelor of Arts in Economics from

Loyola University in Chicago. Previously, he worked as a Senior Servicing

Representative at Oasis Legal Finance and has also worked for RubinBrown LLP

as a Business Advisory Service intern. Upon graduation Mr. Thornton hopes to

find a full time position in the financial service or advisory industry.


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Investment Fund Coordinators

David Abbott

Vice President of Investments — Shelter Insurance Companies

Robert Doroghazi

Cardiologist Author: The Physician’s Guide to Investing

Gary Findlay

Executive Director — Missouri State Employees Retirement System

Geoff Greene

Associate Director of Compliance & Operations — Nuance Investments, LLC

Kurt Kuhn

Director of HNW Consulting Group — Wells Fargo & Company

Mindy McCubbin

Director of Equity Investments — Shelter Insurance Companies

Scott Moore

President and Chief Investment Officer — Nuance Investments, LLC

Pat Neylon

Manager of Public Equity — Missouri State Employees Retirement System

Matt Pitzer

Portfolio Manager — Shelter Insurance Companies

Andy Slusher

President — SMC³

Garry Weiss

Partner — Landers, Weiss & Co., LLC

Stephen Ferris

Robert J. Trulaske, Sr.

College of Business Interim Dean

John Howe

Professor of Finance and

Chair, Dept. of Finance

Michael O’Doherty

Associate Professor of

Finance

Investment Fund Board


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