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2012 Annual Report
Mission Statement
“As members of the University of Tulsa’s Student Investment Fund, we will meet for the
purpose of furthering our knowledge of financial management, elevating our experience in the
investment arena, promulgating our objectives and purposes to the public, mastering the
practices, habits, and ethics of finance professionals, and for the promotion of social and
professional relationships amongst our members. This background will provide us with superior
knowledge and competitive ability in our professional field.
We will also, as beneficiaries, endeavor to provide superior returns to our shareholders; those
individuals who have enabled us to enjoy this experience by donating to the Finance Excellence
Fund.”
-Adopted January 23rd, 2001
Table of Contents
SEO Letter to Shareholders 1
Faculty 3
Guest Speakers 4
History, Goals and Organization 5
Organizational Structure 7
Committee Updates 9
Security Holdings 10
Leaders and Laggards 12
Performance Analysis 13
Purchases and Sales 16
Watch List 18
2012 Financial Statements 20
Student Investment Fund Board of Advisors James Arens, Chief Investment Officer, Trust Company of Oklahoma
David Dunham, Director Corporate Planning, Unit Corporation
Jana Shoulders, President & CEO, Adams Hall Wealth Management
Markham Collins, Professor, University of Tulsa
Richard Burgess, Professor and Director of Finance, Operations Management and International
Business, University of Tulsa
Scott Larrison, Associate Controller, University of Tulsa
Tally Ferguson, Director of Risk Management, Bank of Oklahoma
This report is submitted for the general information of the fund’s donors. For more information on the University of Tulsa Student Investment Fund, please contact:
Tally Ferguson
School of Finance, Operations Management and Int'l. Business
University of Tulsa
800 S. Tucker Drive
Helmerich Hall, Suite 118
Tulsa, OK 74104
Phone: 918-631-2588
Fax: 918-631-2037
Email: [email protected]
Website: http://www.utulsa.edu/sif
Page 1 of 21
Letter to our Shareholders
Douglas Meadours Spring 2013 SEO
Dear Shareholders,
2012 provided many challenges for the
members of the University of Tulsa’s
Student Investment Fund. Macroeconomic
concerns about the length of the recession
and the continuing deleterious effects of
high unemployment on the U.S. economy
challenged SIF members to better
understand the importance of sector
allocation and its impact on the performance
of the Student Investment Fund. The Fed’s
policy of holding already historically low
interest rates constant provided SIF
members the opportunity to examine more
closely the financial theory regarding equity
valuation and to more critically apply the
inputs into equity valuation models such as
CAPM. We further recognized the cost of
holding cash in a low interest rate bull
market. Finally, SIF managed the challenge
of firm-specific risk as the poor performance
of Apple provided one opportunity to
diversify and reduce exposure within the
fund.
The 2012 Student Investment Fund posted a
one year total return of 14.99% compared to
the S&P’s 15.98% return. This .99%
underperformance to the S&P 500 was due
primarily to underperformance in the SIF’s
growth stocks and under-allocation in the
financial sector. However, for the three, five
and ten year periods, the SIF has
outperformed the S&P.
Elected as Student Executive Officer for the
spring semester of 2013, I seek to continue
the outstanding performance of the Student
Investment Fund. With input from the
committee chairs and all 22 members of the
Student Investment Fund, we decided to
more closely track the S&P 500 in our sector
weightings. Although our investment policy
allows a 50% over or underweighting for
each sector from its benchmark we decided
to immediately discuss and make
appropriate changes within the Fund
whenever a sector was more than 20% off
from its benchmark sector weighting. This
in-class policy change had the immediate
effect of moving the Student Investment
Fund to invest more in the underweighted
financials sector.
The performance of the fund is ultimately
the responsibility of every SIF member
fulfilling his/her role within each SIF
committee. The Portfolio Committee is the
main driver of performance as it makes
recommendations on specific securities and
optimization within the fund. The
Macroeconomic Committee examines
current macroeconomic conditions and
provides analysis and recommendations on
sector weightings to the Portfolio
Committee. The Operations/MIS committee
Page 2 of 21
provides the models that SIF members use
to judge fund and security performance.
Finally, the PR committee increases the
visibility of the Student Investment Fund on
campus and the Tulsa community by
arranging excellent guest speakers from the
business community and recruiting new
members for the Student Investment Fund.
Participation in the University of Tulsa’s
Student Investment Fund is a truly
invaluable experience for its student
members. For access to world-class tools
such as the Bloomberg Terminal to the
opportunity to apply theoretical models to
real-world problems in equity valuation and
portfolio optimization, I wish to thank you
on behalf of all the members of the Student
Investment Fund and ask you for your
continued support and interest.
Regards,
Douglas Meadours
Student Executive Officer, Spring 2013
Page 3 of 21
Faculty
Tally Ferguson, CFA
SVP Director of Risk Management at BOK
Financial
Adjunct Professor in Finance, Univ. of Tulsa
Tally Ferguson is the Faculty Advisor of the
Student Investment Fund here at the
University of Tulsa. He received two
bachelor’s degrees at Yale University in
1985 in the fields of Mathematics and
Economics. He then earned his M.B.A
degree from the Wharton School of Business
at the University of Pennsylvania in 1990.
Mr. Ferguson specializes in Risk
management, Portfolio analysis, Economic
capital, Personal finance, Modeling,
Derivative strategies and bank regulation.
During the years 1985-1994 he worked in
New York as an examiner for the Federal
Reserve Bank of New York. He had been
promoted to Supervising examiner by the
end of his time there. From 1994-1996 he
worked with Ernst & Young as a regulatory
consultant. He worked at the Bank of
Oklahoma as the Senior Vice-President of
Risk Management from 2002-2011. He is
now the Senior Vice-President Director of
Risk Management for BOK Financial.
Mr. Ferguson has taught at the University of
Tulsa since 2003 in areas of Finance such as
the Student Investment Fund, Personal
Finance, Basic Financial Principals and
Financial Institution Management. He is a
member of multiple committees. Since
2011, he has been a board member of the
Risk Management Association and is the
Program’s Committee Chair. He is also a
board member of the Camp Fire USA Green
County Council and Nominating committee
chair. Since 2010, he has been a member of
the Policy and Planning committee for the
Tulsa, OK Area United Way.
Tally Ferguson received the Helmerich
Graduate Faculty Excellence Award in May
of 2012.
Page 4 of 21
Guest Speakers
Each semester several business professionals are invited to speak to the Student Investment Fund
students as a means of enriching the base curriculum. The knowledge imparted by the
professionals from the business community is an essential element in building the student’s
knowledge base and exposing the students to real-world issues and topics. The speakers have a
variety of different backgrounds and are each able to bring a unique perspective to the class.
The 2012 guest speakers were:
David Dunham Vice President, Trading and Corporate
Planning at Unit Corporation CFO at Toopher
Lee Allen, Jr. Senior Portfolio Manager of Bank of Oklahoma
Chris Graber VP Managing Director Merchant Banking/ Private
Equity Investing in Commercial Banking Division
at BOK
Chris Shannon AVP, CFP(tm), ChFC, Wealth Management at
Merrill Lynch
Steve Wyett SVP Managing Director at Bank of Oklahoma
Spring 2013 Guest Speakers:
Brian Henderson CFA, President, Cavanal Hill Investment
Management
Bryan Guderian SVP Operations, WPX Energy
David Dunham Vice President, Trading and Corporate
Planning at Unit Corporation CFO at Toopher
Page 5 of 21
History, Goals and Organization
SIF History and Purpose
The University of Tulsa Student Investment
Fund (SIF), started in the Fall semester of
1997. It provides unique opportunities to
outstanding undergraduate and graduate
students in their study of finance. Some of
these opportunities include gaining practical
experience in financial modeling, portfolio
management, and fundamental analysis,
making investment decisions with real
consequences and understanding the effects
of macroeconomic forces on industries and
firms. Students apply financial theories and
models in making real investment decisions
and manage a real portfolio of financial
assets. Thanks to the generous donations of
TU friends and alums, TU students, have
gained valuable hands-on experience that
has helped prepare them for the challenges
faced in their financial careers.
The TU SIF is completely funded by
donations to the Finance Excellence Fund.
Since its inception in 1990, the Finance
Excellence Fund has provided more than
$520,000 in scholarships to 157 outstanding
students and the operating funds for the SIF.
Furthermore, the Finance Excellence Fund
has allowed the University of Tulsa to
advance toward its goal of national
academic recognition. Frank M. Engle made
the first contribution to the Finance
Excellence Fund in 1990. Since then more
than 475 TU alumni and friends of the
University have generously contributed
more than $2,300,000. Without Friends of
Finance, the TU SIF would not be possible.
SIF Goals and Management Style
As of December 31, 2012, the TU SIF had
$2,845,951.38 under management. The goal
of the SIF is to outperform the S&P 500
index using an enhanced index
methodology. At least 30% of the assets
under management are allocated to a SPDR
500 ETF. The remaining 70% is allocated to
individual securities and cash. SIF student
managers adhere to a diversified portfolio
approach. No more than 7% can be allocated
to any single security. Furthermore, the
Fund shall have no more or less than 50%
difference in the sector weightings in
comparison to the S&P 500 sector
weightings. The fund is moving toward
value securities in an attempt to stabilize
returns over the long-run.
Class Organization
The TU SIF has a hierarchal organizational
structure with students serving in all of the
functional roles. Each student is required to
take an active role in two of the five SIF
committees.
The SIF organizational structure is as
follows:
Board of Advisors: The Board consists of
members from the Tulsa business community
appointed by the Friends of Finance Board.
The Board meets with the Faculty Advisor as
needed to approve charter or investment
strategy changes or decisions. In addition, the
Board shall serve as SIF's voice of experience
and advise the Membership as necessary.
Faculty Advisors: The Faculty Advisor, Tally
Ferguson, shall have final say over all
assigned class grades, final grades,
membership, and all classroom decisions.
While it is the responsibility of the Faculty
Advisor to allow the students themselves to
make decisions as to the management of the
fund, the Advisor is also responsible for the
educational experience and prudent
management of the TU SIF. Therefore, the
Faculty Advisor shall retain veto power and
Page 6 of 21
final decision authority over all TU SIF
activities to be used at his/her discretion.
Student Executive Officer (SEO): The SEO
is responsible for the day-to-day
management of the SIF class activities. The
SEO leads class discussions, ensures SIF
committees are functioning properly,
monitors the SIF portfolio, and assures that
the SIF members are acting in accordance
with the SIF Constitution and Bylaws.
Recording Secretary: The Secretary is
responsible for recording minutes during all
class meetings and the record keeping of all
SIF discussion. The Secretary monitors
membership attendance and distributes
annual and quarterly report documents. The
Secretary serves as the communication
liaison between all parties involved with the
SIF.
Treasurer: The Treasurer is responsible for
administering the TU SIF membership in the
TU Student Association in order to provide
funding for events hosted by SIF such as
guest speakers and securities presentations.
The Treasurer keeps a record of expenses
incurred as well as donations offered. The
Treasurer also reports to SIF on expenses
and how they were funded.
Page 7 of 21
Organizational Structure
Spring, 2013
Membership/PR
Committee Chair Cynthia Onyechere
Portfolio/Accounting/Risk
Committee Chair
Natalie White
Operations/MIS
Committee Chair
Matt Kocisak
Macroeconomic
Committee Chair
Gianni Esparza
Portfolio/Accounting Risk
Committee Chris Worrel
Josh Hunt
Matt Kocisak
John Patterson
Kylan Martins
Morgan Tipton
Qiu Jin Shuang Song Zongbei Lu Peilin Shi Bret Travis Abram Stewart Yang Wang
Macroeconomic
Committee
Joey Moppert
Khoa Nguyen
Jane Ann Galiger
Cynthia Onyechere
Douglas Meadours
Jie Ke
Elliot Gribaudo
Membership/PR
Committee
Morgan Tipton
Natalie White
Shuang Song
Elliot Gribaudo
Abram Stewart
Douglas Meadours
Chris Worrel
Jane Ann Galiger
Jie Ke
Joey Moppert
Qiu Jin
Operations/MIS
Committee
Peilin Shi
Bret Travis
Josh Hunt
Zongbei Lu
Gianni Esparza
Khoa Nguyen
Yang Wang
Student Executive Officer
Douglas Meadours
Faculty Advisor
Tally Ferguson
FOF Board
SIF Advisory Board Director of the School of
Finance, Operations Mgmt.
and Int’l Business
Secretary
Kylan Martin
Treasurer
John Patterson
Page 8 of 21
Spring 2013 Class
Back row: Matt Kocisak, Kylan Martin, Morgan Tipton, John Patterson, Zongbei Lu, Khoa Nguyen, Abram Stewart, Josh Hunt
Middle row: Peilin Shi, Jie Ke, Qui Jin, Gianni Esparza, Natalie White, Shuang Song, Yang Wang, JaneAnn Galiger Front row: Elliot Gribaudo, Chris Worrell, Tally Ferguson, Douglas Meadours, Cynthia Onyechere, Brent Travis (not pictured: Joey Moppert)
Fall 2012 Class
Back row: Zhou Hang, Zach Krahulik, Chris DuVall, Gavin Pearson, Cory Bloodgood, Taylor Murphy, Jeff Jenneman, Tally Ferguson
Middle row: Sujun Ji, Lifei Xue, Craig Eubank, Arthur Loyd, Beat Meier, Nick Miranda Front row: Luyuan Fank, Zhe Zhang, Chuxin Ai, Moon Eng, Xinyi Zhang, Xiaohui Jin, Lindsay Walton, Bobbie Bearden, Annette Luther
Page 9 of 21
Committee Updates
MIS and Operations The MIS/Operations committee has been
tasked with facilitating the Student
Investment Fund in its operations, from
technical issues to analysis. In addition to
basic maintenance of the Williams Risk
Management Center and our SIF file
structure, our committee has helped
determine more accurate sector designations
for several stocks through mathematical
analysis. The committee has also updated
the website to provide up-to-date
information about the fund. Overall, the
MIS/Operations committee has been
committed to helping the Student
Investment Fund run more efficiently and
effectively.
Portfolio, Accounting and Risk The Portfolio Committee’s main focus is to
discover the optimal investment strategies
that will result in outperforming the S&P
500. These strategies will incubus a range of
investment methods, such as fundamental
and technical analysis. This committee will
not only consider the expected return, but
will consider the level of risk associated
with any decision. In order to achieve an
optimal strategy for the Student Investment
Fund, this committee will determine the
maximum profit for the amount of risk and
in doing so will always have the fund's best
interest and future success in mind.
Macroeconomic Committee The Macroeconomic Committee has worked
to continue updating the class on major
economic movements. Our coverage has
ranged from individual sector weighting
recommendations to tracking changes in
national policy. Some of our main areas of
focus for the 2013 spring semester have
been energy prices, employment, consumer
sentiment, and sector performance. We have
made one major presentation (aside from
weekly updates) this semester.
For the Fall of 2012 the Macroeconomic
Committee focused on a variety of different
topics. Their main goal was to report
significant macroeconomic events on a
weekly basis. They also put forward a set of
goals for the next spring semester committee
to accomplish. Among them was the need to
make sector recommendations, assist the
portfolio, accounting, and reporting
committee more closely, and to give two
major presentations throughout the semester.
Public Relations and Membership The membership aspect is dedicated to
effectively promoting the opportunities SIF
offers to qualified undergraduate and
graduate students. The committee takes
several steps to ensure a high number of
qualified students are exposed to SIF.
Among these will be classroom visits,
emails to undergraduate and graduate
students, and an informational sessions
during our guest speakers’ series and new
securities presentations. The Public
Relations aspect is focused on scheduling
business professionals to attend class and
present a topic relevant to the students of
SIF. The objective of scheduling numerous
influential speakers was to ensure that
students are up to date with what is going on
in the corporate world. Topics varied greatly
but centered on investments and career
opportunities for finance professions in
different industries.
Page 10 of 21
Security Holdings
University of Tulsa SIF Holdings
December 31, 2012
Security Symbol Quantity Cost Basis Market Value
Unrealized Gain/Loss
% of Portfolio
Cash
897.28 897.28 897.28
0.03
ML Bank Deposit Program
24,934.00 24,934.00 24,934.00
0.88
Cash/Money Account
25,831.28
0.91
COSTCO Wholesale CRP DEL COST 200 19,759.00 19,746.00 -13.00 0.69
DSW Inc. DSW 300 19,425.63 19,707.00 281.37 0.69
Lululemon Athletica Inc LULU 750 37,883.09 57,172.50 19,289.41 2.01
McDonald's Corporation MCD 280 25,529.00 24,698.80 -830.20 0.87
Nike NIKE 1,062 28,633.21 54,799.20 26,165.99 1.93
Priceline.com Inc. PCLN 83 11,756.95 51,492.37 39,735.42 1.81
Tim Horton’s Inc. THI 1,143 55,046.88 56,212.74 1,165.86 1.98
Cons. Discret.
198,033.76 283,828.61 85,794.85 9.97
Coca Cola Enterprises CCE 615 19,057.85 19,513.95 456.10 0.69
Diageo ADR DEO 630 43,899.80 73,445.40 29,545.60 2.58
General Mills GIS 2,127 75,740.08 85,973.34 10,233.26 3.02
Kimberly Clark Corp KMB 544 30,241.29 45,929.92 15,688.63 1.61
Cons. Staples
168,939.02 224,862.61 55,923.59 7.90
EOG Resources EOG 300 35,279.49 36,237.00 957.51 1.27
Exxon Mobil Corporation XOM 693 40,263.10 59,979.15 19,716.05 2.11
Occidental Petroleum Corporation
OXY 618 49,529.43 47,344.98 -2,184.45 1.66
Schlumberger Limited. SLB 499 30,857.60 34,580.01 3,722.41 1.22
Spectra Energy Corp SE 977 28,986.29 26,750.26 -2,236.03 0.94
Energy
184,915.91 204,891.40 19,975.49 7.20
CHUBB CORP CB 650 50,515.00 48,958.00 -1,557.00 1.72
JPMorgan Chase & Co JPM 953 40,307.13 41,902.55 1,595.42 1.47
U.S. Bancorp USB 2,100 61,314.90 67,074.00 5,759.10 2.36
Financials
152,137.03 157,934.55 5,797.52 5.55
Page 11 of 21
Security Holdings (Continued)
University of Tulsa SIF Holdings
December 31, 2012
Security Symbol Quantity Cost Basis Market Value
Unrealized Gain/Loss
% of Portfolio
Gilead Sciences GILD 1,393 46,890.77 102,315.85 55,425.08 3.60
Intuitive Surgical ISRG 196 69,641.24 96,112.52 26,471.28 3.38
Johnson and Johnson JNJ 430 29,938.75 30,143.00 204.25 1.06
Varian Medical Systems, Inc. VAR 517 34,926.64 36,314.08 1,387.44 1.28
Health Care
181,397.40 264,885.45 83,488.05 9.31
Canadian National Railway Co CNI 1,181 74,209.33 107,482.81 33,273.48 3.78
Caterpillar Inc. CAT 771 38,261.17 69,088.16 30,826.99 2.43
Illinois Tool Works ITW 311 17,866.92 18,911.91 1,044.99 0.66
Industrials
130,337.42 195,482.88 65,145.46 6.87
Apple Inc. AAPL 193 19,117.32 102,709.37 83,592.05 3.61
Cognizant Tech Solutions CTSH 650 33,370.55 48,023.50 14,652.95 1.69
FactSet Research Systems FDS 734 48,709.66 64,636.04 15,926.38 2.27
MasterCard MA 192 52,100.94 94,325.76 42,224.82 3.31
Neustar Inc NSR 546 20,181.86 22,893.78 2,711.92 0.80
Qualcomm Inc. QCOM 746 47,913.72 46,147.26 -1,766.46 1.62
Info Tech
221,394.05 378,735.71 157,341.66 13.31
Agrium Inc. AGU 60 6,058.80 5992.28 -66.52 0.21
Freeport-McMoran FCX 165 8,766.45 5,643.00 -3,123.45 0.20
International Flavors & Fragrances IFF 764 39,429.86 50,836.56 11,406.70 1.79
Materials
54,255.11 62471.84 8216.73 2.20
AT&T Inc. T 795 23,182.03 26,799.45 3,617.42 0.94
Verizon Communications Inc. VZ 460 20,136.50 19,904.20 -232.30 0.70
Telecom
43,318.53 46,703.65 3,385.12 1.64
Cleco Corp CNL 1,267 48,451.12 50,692.67 2,241.55 1.78
The Southern Company SO 470 20,071.70 20,120.70 49.00 0.71
Utilities
68,522.82 70,813.37 2,290.55 2.49
SPY 500
929,510.07
32.66
Total
2,845,951.42
100.00
Page 12 of 21
Leaders and Laggards
December 31, 2012
Leaders by Percentage
Security Ticker Percentage Change
Gilead GILD 61%
Apple AAPL 47%
MasterCard MA 38%
Laggards by Percentage
Security Ticker Percentage Change Occidental Petroleum OXY -15%
Caterpillar CAT -10% Factset Research
Systems FDS -9%
Leaders by Dollar Amount
Security Ticker Amount Apple AAPL $190.54
MasterCard MA $113.69
Intuitive Surgical ISRG $108.36
Laggards by Dollar Amount
Security Ticker Amount
Occidental Petroleum OXY -$13.36 Caterpillar CAT -$9.65
Factset Research System FDS -$8.87
Page 13 of 21
Performance Analysis
Student Investment Fund vs. S&P 500
In 2012, the Fund gain was 14.99%, compared to the S&P 500 gain of 15.98%. The SIF
underperformed the S&P 500 by just 99%.
1Q 2Q 3Q 4Q Year-to-Date Difference
S&P 500 12.69% -2.85% 6.34% -0.38% 15.98% -0.99%
SIF 12.33% -3.12% 6.32% -0.62% 14.99%
Sector Analysis The major contributors to the SIF portfolio in 2012 were Consumer Staples, Healthcare and
Utilities.
Consumer Discretionary
9% Consumer Staples
9%
Energy 7%
Financials 7%
Healthcare 9%
Industrials 7%
IT 10%
Materials 6%
Telecom 1%
Utilities 2%
S&P 500 33%
Diversification by Sector December 31, 2012
Page 14 of 21
Performance Analysis (Continued)
Consumer Staples This sector currently makes up 9% of the fund. Out of the five Consumer Staples
securities General Mills (GIS) provided the greatest yield for the fund. During 2012 this sector
has shown a constant demand and has provided a defense in the fluctuation of the economy for
the fund.
Healthcare In 2012 the fund has four healthcare securities and Gilead Sciences Inc. (GILD) makes
up the majority. The sector has provided great return for the fund and analyst project that it will
continue to grow in the upcoming years.
Utilities Utilities have provided stead cash inflow for the fund in 2012, averaging about a 4% return. The
fund is composed of two securities in this sector: Southern Company (SO) and Canadian
Railroad Corporation (CNI).
How would 20,000 Impact the fund? The graph below indicates how an additional $20,000 investment in the Student Investment Fund
and S&P from 2008-2012 would have resulted in. Investing 20,000 in the SIF for just a span of
five years would have produced a greater return compared to the S&P 500.
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
T0 2008 2009 2010 2011 2012
$20,000 Impact?
SIF
S&P 500
Page 15 of 21
Performance Analysis (Continued)
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2008 2009 2010 2011 2012
One Year Time Weighted Returns December 31, 2012
SIF S&P 500
Page 16 of 21
Purchases and Sales
Securities Purchased
01/01/2012 to 12/31/2012
Trade Date Description Symbol Quantity Price ($) Amount ($)
11/29/2012 AGRIUM INC AGU 60 100.89 6,058.80
10/11/2012 AT&T INC T 42 36.70 1,545.18
10/11/2012 CANADIAN NATL RAILWAY CO CNI 113 89.15 10,084.12
12/13/2012 CHUBB CORP CB 650 77.63 50,515.00
10/11/2012 CLECO CORP CNL 87 41.89 3,652.26
3/15/2012 CLECO CORP CNL 910 38.48 8,101.00
11/29/2012 COCA COLA ENTERPRISES INC CCE 615 30.90 19,057.85
12/13/2012 COSTCO WHOLESALE CRP DEL COST 200 98.71 19,759.00
3/8/2012 DIAGEO PLC DEO 179 95.93 17,187.58
12/13/2012 DSW INC DSW 300 64.66 19,425.63
11/29/2012 EOG RESOURCES INC EOG 300 117.51 35,279.49
10/11/2012 EXXON MOBIL CORP XOM 25 91.78 2,296.75
10/11/2012 FACTSET RESH SYS INC FDS 39 94.49 3,688.62
10/11/2012 GENERAL MILLS GIS 166 39.69 6,603.46
10/11/2012 GILEAD SCIENCES INC GILD 43 68.64 2,955.39
3/8/2012 GILEAD SCIENCES INC GILD 550 46.64 25,702.88
10/11/2012 INTL FLAVORS & FRAGRNCES IFF 64 60.73 3,892.48
10/11/2012 INTUITIVE SURGICAL INC ISRG 12 496.94 5,964.36
11/29/2012 JOHNSON AND JOHNSON JNJ 430 69.54 29,938.75
11/29/2012 JPMORGAN CHASE & CO JPM 730 41.34 30,243.90
10/19/2012 JPMORGAN CHASE & CO JPM 120 42.58 5,119.80
4/19/2012 JPMORGAN CHASE & CO JPM 578 43.51 25,199.36
10/11/2012 KIMBERLY CLARK KMB 76 86.25 6,561.84
10/19/2012 LULULEMON ATHLETICA INC LULU 114 70.65 8,064.36
10/11/2012 MASTERCARD INC MA 21 471.49 9,903.18
10/4/2012 MCDONALDS CORP MCD 280 91.09 25,529.00
4/19/2012 NEUSTAR INC NSR 546 36.87 20,181.86
10/19/2012 NIKE INC NKE 31 96.82 3,004.21
10/11/2012 OCCIDENTAL PETE CORP OXY 27 83.68 2,261.79
4/19/2012 QUALCOMM INC QCOM 746 64.14 47,913.72
10/11/2012 SCHLUMBERGER LTD SLB 32 72.70 2,329.28
11/29/2012 SOUTHERN COMPANY SO 470 42.62 20,071.70
Page 17 of 21
Purchases and Sales (Continued)
Securities Purchased
01/01/2012 to 12/31/2012
Trade Date Description Symbol Quantity Price ($) Amount ($)
10/11/2012 SOUTHWESTERN ENERGY CO SWN 65 36.71 2,392.00
2/9/2012 SOUTHWESTERN ENERGY CO SWN 152 32.82 5,002.96
10/11/2012 SPECTRA ENERGY CORP SE 77 29.68 2,292.29
11/29/2012 STANDARD & POORS DEP SPY 110 142.41 15,674.45
10/4/2012 STANDARD & POORS DEP SPY 170 146.13 24,856.55
9/27/2012 STANDARD & POORS DEP SPY 350 143.74 50,340.50
3/8/2012 STANDARD & POORS DEP SPY 190 136.38 25,928.45
2/17/2012 STANDARD & POORS DEP SPY 233 136.13 31,738.30
1/19/2012 STANDARD & POORS DEP SPY 220 131.22 28,887.32
11/29/2012 US BANCORP USB 300 32.58 9,801.00
4/19/2012 US BANCORP USB 800 31.43 25,214.00
10/11/2012 VARIAN MEDICAL SYS INC VAR 49 59.22 2,906.08
11/29/2012 VERIZON COMMUNICATIONS VZ 460 43.69 20,136.50
Securities Sold
01/01/2012 to 12/31/2012
Trade Date Description Symbol Quantity Price ($) Amount ($)
11/29/2012 ANNALY CAP MGMT INC NLY 3839 14.70 56,082.69
4/19/2012 APPLE INC AAPL 82 600.14 49,203.00
3/8/2012 BRISTOL-MYERS SQUIBB CO BMY 2050 32.81 67,067.62
11/29/2012 CLECO CORP CNL 380 39.58 15,005.89
11/29/2012 FREEPRT-MCMRAN CPR & GLD FCX 495 39.29 19,401.09
10/11/2012 GUGGENHEIM BRIC EEB 650 35.64 23,106.53
10/11/2012 ISHARES MSCI EMERGING MKT EEM 371 41.59 15,397.26
12/13/2012 JPMORGAN CHASE & CO JPM 475 42.74 20,255.93
3/15/2012 NAT FUEL GAS CO NFG 704 49.23 34,593.94
11/29/2012 PEPSICO INC PEP 275 70.40 19,334.82
3/8/2012 PEPSICO INC PEP 275 63.01 17,303.06
11/29/2012 SOUTHWESTERN ENERGY CO SWN 1017 35.10 35,601.33
12/13/2012 STANDARD&POORS DEP SPY 110 143.72 15,798.40
12/13/2012 US BANCORP USB 950 31.85 30,173.70
Page 18 of 21
SIF Watch list 2012
The securities on the Watch List have been reviewed by the SIF students and are approved for
purchase. A decision of whether or not to make the purchase has not been reached but each
security is followed and analyzed by an assigned student.
Wal-Mart (WMT) Wal-Mart Stores, Inc. operates retail
stores in various formats worldwide. It
operates retail stores, restaurants, discount
stores, supermarkets, supercenters,
hypermarkets, warehouse clubs, apparel
stores, Sam’s Clubs, and neighborhood
markets, as well as walmart.com; and
samsclub.com. The company’s stores offer
meat, produce, deli, bakery, dairy, frozen
foods, alcoholic and nonalcoholic beverages,
and floral and dry grocery; health and
beauty aids, baby products, household
chemicals, paper goods, and pet supplies;
electronics, toys, cameras and supplies,
photo processing services, cellular phones,
cellular service plan contracts and prepaid
service, and books; stationery, automotive
accessories, hardware and paint, sporting
goods, fabrics and crafts, and seasonal
merchandise; pharmacy and optical services;
shoes, jewelry, accessories, and apparel for
women, girls, men, boys, and infants; and
home furnishings, housewares and small
appliances, bedding, home décor, outdoor
living, and horticulture products.
The Bank of Nova Scotia (BNS) The Bank of Nova Scotia, together with
its subsidiaries, provides various personal,
commercial, corporate, and investment
banking services in Canada and
internationally. The company operates
through four segments: Canadian Banking,
International Banking, Global Wealth
Management, and Global Banking and
Markets. The Bank of Nova Scotia was
founded in 1832 and is headquartered in
Halifax, Canada.
Aflac (AFL) Aflac Incorporated, through its
subsidiary, American Family Life Assurance
Company of Columbus, provides
supplemental health and life insurance
products. The company offers various
voluntary supplemental insurance products.
It also offers products designed to protect
individuals from depletion of assets and
loss-of-income products.
Toll's Brothers (TOL) Toll Brothers, Inc., together with its
subsidiaries, designs, builds, markets, and
arranges finance for detached and attached
homes in luxury residential communities. It
is also involved in building or converting
existing rental apartment buildings into
luxury homes. In addition, the company,
through joint ventures, is developing a high-
rise luxury condominium/hotel project and a
for-rent luxury apartment complex. Further,
it owns, develops, and operates golf courses
and country clubs associated with various
planned communities. The company serves
move-up, empty-nester, active-adult, age-
qualified, and second-home buyers in 19
states in the United States.
Page 19 of 21
Chipotle Mexican Grill, Inc. (CMG) Chipotle Mexican Grill, Inc. develops
and operates fast casual and fresh Mexican
food restaurants. Its restaurants primarily
offer burritos, tacos, burrito bowls, and
salads. As of December 31, 2012, the
company operated 1,410 restaurants,
including Chipotle restaurants in the United
States; 5 in Canada; 5 in London, England;
and 1 in Paris, France, as well as 1
ShopHouse Southeast Asian Kitchen, a
restaurant in Washington, D.C. Chipotle
Mexican Grill, Inc. was founded in 1993 and
is based in Denver, Colorado.
Helmerich & Payne (HP) Helmerich & Payne, Inc. engages in the
contract drilling of oil and gas wells. It
provides drilling rigs, equipment, personnel,
and camps on a contract basis to explore for
and develop oil and gas from onshore areas
and fixed platforms, tension-leg platforms,
and spars in offshore areas. The company is
also involved in the ownership,
development, and operation of commercial
real estate; and research and development of
rotary steerable technology.
Abbott Laboratories (ABT) Abbott Laboratories engages in the
discovery, development, manufacture, and
sale of health care products worldwide. The
company has four segments, including
Pharmaceutical Products segment,
Diagnostic Products segment, Nutritional
Products segment and Vascular Products
segment. The company primarily serves
retailers, wholesalers, hospitals, health care
facilities, laboratories, physicians’ offices,
and government agencies.
Universal Health Services Inc.
(UHS) Universal Health Services, Inc., through
its subsidiaries, owns and operates acute
care hospitals, behavioral health centers,
surgical hospitals, ambulatory surgery
centers, and radiation oncology centers. Its
hospitals offer various services, including
general and specialty surgery, internal
medicine, obstetrics, emergency room care,
radiology, oncology, diagnostic care,
coronary care, pediatric, pharmacy, and/or
behavioral health services.
Accenture Plc (ACN) Accenture plc provides management
consulting, technology, and business process
outsourcing services worldwide. It offers
various management consulting services in
the areas of finance and enterprise
performance, operations, risk management,
sales and customer service, strategy,
sustainability, and talent and organization
management, as well as provides industry-
specific management consulting services.
Syntel Inc. (SYNT) Syntel, Inc. provides information
technology (IT) and knowledge process
outsourcing (KPO) services worldwide. It
operates in four segments: Applications
Outsourcing, KPO, e-Business, and Team
Sourcing. Its services include systems
specification, design, development,
implementation, and maintenance of
complex IT applications. The company
provides services to a range of companies
primarily in the financial services,
healthcare and life sciences, insurance,
manufacturing, automotive, retail, logistics,
and telecom industries.
Page 20 of 21
2012 Financial Statements
Income Statement For Period Ending
12/31/2012 12/31/2011
Dividend Income $52,570.16 $46,306.09
Capital Gain Distribution 652.63 460.68
Foreign Taxes Paid 427.21 (469.49)
Interest Income 77.95 65.87
Net income $53,727.95 $46,363.15
Appreciation of Securities $290,085.30 $30,532.30
Statement of Cash Flows For Period Ending
12/31/2012 12/30/2011
Net Income
$53,727.95
$46,363.15
Electronic Transfers 221,630.00 145,973.00
Other (540.30) (445.62)
Cash Flows from Income, E. Transfers, Other 274,817.65 191,890.53
Purchases of Securities
(750,274.18) (338,699.43)
Sales of Securities 418,325.26 202,812.51
Cash Flows From Trades (331,948.92) (135,886.92)
Timing Difference Trades, Dividend Income; Other
(814.39)
(82.91)
Net Changes in Cash
(57,945.66) 55,920.70
Cash Beginning of Period 83,776.94 27,856.24
Net Changes in Cash (57,945.66) 55,920.70
Cash End of Period $25,831.28 $83,776.94
Page 21 of 21
2012 Financial Statements
Equity Statement As Of
12/31/2012 12/30/2011 12/31/2010
Cash Balance $25,831.28 $83,776.94 $27,856.24
Equities 1,890,610.07 1,487,861.78 1,308,809.15
Mutual Fund 929,510.07 710,027.24 722,189.18
Total Portfolio Value $2,845,951.42 $2,281,665.96 $2,058,854.57
Increase from Dividends, Capital Gains, Other $342,655.46 $76,838.39 Increase from Electronic Transfers $221,630.00 $145,973.00 Total Portfolio Change $564,285.46 $222,811.39
