Sellinger Applied Portfolio Fund
The student-managed Sellinger Applied Portfolio Fund at Loyola University Maryland, also known as the “SAP Fund,” was established to provide students with actual portfolio management experience. Students are exposed to the various aspects of the portfolio management process, including asset valuation, diversification, portfolio optimization, asset selection, risk management, performance evaluation, and rebalancing. Each year, the University may provide the SAP Fund with up to $500,000 to invest. These funds are a component of the University’s endowment. All investments within the SAP Fund are liquidated annually at the end of the course.
Students have access to the Bloomberg Professional, S&P Capital IQ, and Morningstar Direct platform for research, and classes are conducted in the SELL—the trading floor located in the Sellinger School of Business and Management.
Investment Policy
Background and Learning Objectives
The student-managed Sellinger Applied Portfolio Fund, also known as the “SAP Fund,” was established to provide students with actual portfolio management experience exposure, including asset valuation, constraint setting asset allocation, asset selection, risk management, and performance evaluation. Each year, the University may provide the SAP Fund with up to $500,000 to invest. These funds are a component of the University’s endowment. All investments within the SAP Fund are liquidated annually at the end of the course
Investment Philosophy
- Allowable investments include:
- U.S. exchange listed stocks, including ADRs.
- Unleveraged ETFs, including stock index ETFs and Commodity ETFs
- Only investment grade securities.
- Unallowable investments include “sin” stocks, e.g., manufacturers of cigarettes, alcohol, firearms, or companies engaged in gambling activities. Moral and social considerations must be taken into consideration throughout the investment process, with emphasis on the United States Conference of Catholic Bishops principles of investments.
- U.S. exchange listed stocks, including ADRs.
Investment Strategies
- The primary investment strategy is to select stocks that are undervalued and will outperform their industry and the S&P 500 index over the course of the investment period
- Diversification across sectors will be a key part of the investment strategy, although
given market conditions in a particular time period, certain sectors may be significantly
under-weighted and others over-weighted. Asset allocation targets include:
- Not more than 10% will be invested in any one stock
- Not more than 20% will be invested in a single sector
- Not more than 25% will be invested in a single index
- There will ordinarily be three types of investment strategies within the SAP Fund
- A growth investment strategy
- A value investment strategy
- A dividend strategy
- Depending on economic conditions during a given period, the SAP Fund may be more heavily
weighted towards one or two of these investment strategies. The primary objective
is to work towards a mix that includes:
- 40% Value
- 40% Growth
- 20% Dividend
- Rebalancing Criteria
- The fund will be monitored and periodically rebalanced to ensure that the targets as specified in Investment Strategies, to ensure diversification, will be adhered to
- Rebalancing may be necessary after re-evaluating positions in securities that have significantly underperformed and/or those that have significantly over performed resulting in these securities becoming temporarily overvalued
- Proxy voting will be in agreement with company recommendations
Research Sources and Process
- The primary research database will be the Reuters Eikon platform which is available to the students in the SELL
- Additional research sources may include:
- Company announcements
- Global markets & foreign exchange
- Inflation / unemployment / housing statistics
- Consumer confidence
- Interest rates and Federal Reserve announcements
- Political news
- Fundamental analysis / use of ratios and valuation models, to include debt ratios, ROA, ROE, P/E, PEG, current & quick ratios.
Oversight and Process
Investment Committee of Board
- Approve annual allocation to SAP Fund;
- Monitor performance of SAP Fund on a monthly basis as part of the University’s endowment; and
- May invite faculty and students to attend Investment Committee meetings to discuss SAP Fund
Faculty
- Provide oversight and direction to students;
- Submit buy and sell requests to Associate Vice President for Finance for approval and to Director of Investment and Treasury Services for processing; and
- Submit semester end reports detailing Fund performance to Department Chair, Associate Vice President for Finance, Director of Investment and Treasury Services
Students
- Perform research and rebalancing within portfolio
- Prepare buy and sell requests for approval by faculty
Office of Business and Finance
- Associate vice president for finance approves all buy and sell requests;
- Director of investment and treasury services works with investment custodian to process all buy and sell requests; and
- Ensure all investments within the SAP Fund are liquidated annually
Investment Custodian and Investment Consultant
- Process all buy and sell requests
- Provide quarterly Fund performance report
Portfolios
Academic Year 23-24
Portfolios | Student Fund managers |
Summer 2024 | Download Bios |
Spring 2024 | Download Bios |
Fall 2023 | Download Bios |
Spring 2023 | Download Bios |
Past Porfolios
2013-2022
Semester | Portfolio Downloads | Student Fund Manager Profiles |
---|---|---|
2022 Fall | Portofolio | Student Managers |
2022 Spring | Portofolio | Student Managers |
2021 Fall | Portfolio | Student Managers |
2021 Summer | Portfolio | Student Managers |
2021 Spring | Portfolio | Student Managers |
2020 Fall | Portfolio | Student Managers |
2020 Summer | Portfolio | Student Managers |
2020 Spring | Portfolio | Student Managers |
2019 Fall | Portfolio | Student Managers |
2019 Summer | Portfolio | Student Managers |
2019 Spring | Portfolio | Student Managers |
2018 Summer | Portfolio | Student Managers |
2018 Spring | Portfolio | Student Managers |
2017 Fall | Portfolio | Student Managers |
2017 Summer | Portfolio | Student Managers |
2017 Spring | Portfolio | Student Managers |
2016 Fall | Portfolio | Student Managers |
2016 Spring | Portfolio | Student Managers |
2014 Fall | Portfolio | Student Managers |
2014 Spring | Portfolio | Student Managers |
2013 Fall | Portfolio | Student Managers |
2013 Spring | Portfolio |
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