Student Investment

Management (SIM) Fund

Annual Report June 2013

___________________________

Max M. Fisher College of

Business

The Ohio State University

1

The Student Investment Management (SIM)

Program

Contact Information:

The Ohio State University

Max M. Fisher College of Business

Department of Finance

700 Fisher Hall

2100 Neil Avenue

Columbus, OH 43210

www.fisher.osu.edu/fin/courses/sim

www.buckeyefunds.com

sim@fisher.osu.edu

2

Acknowledgements:

The SIM Fund family would like to thank:

Dr. Kewei Hou – SIM Director and FCOB

Professor

Adam Robertson – SIM class Lecturer

Royce West – SIM class Lecturer

SIM Class Guest Speakers

Megan Weidrick – former SIM GA

Jonathan Hook and Scott Adams – The

Office of Investments

The Rosenfield Family and Frank

Bettendorf Group – donors, for offering

scholarships that support the SIM Program

Gary Leimbach, Natalie Darner, and Josh

Smith – Controller’s Office, for managing the

SIM Fund and all University endowment

funds

Patricia Maurer – Senior Director of Alumni

Relations, for planning the SIM trips every

semester

Fisher and OSU Alumni Hosts:

Hosts in New York

Spring 2013

J. Brian Mullen Managing Director

Coady Diemar Partners

Tim Gallagher Managing Director

Morgan Stanley

Aasim Khwaja Managing Partner

KL Investment Partners, LLC

Elizabeth Mily Managing Director, Global Healthcare Banking

Barclays

Bloomberg

Bofei Xu

Commodities Analyst

Goldman Sachs

3

Table of Contents:

History of the Student Investment Management (SIM) Program …….. 4

SIM Program Objectives and Philosophy .………………………………… 5

SIM Program Investment Process …..……………………………………… 7

SIM Program Performance: SIM vs. S&P 500 ……….…………………… 8

Appendices:

SIM Fund Holdings – June 30, 2013 ……………………………………… 12

SIM Fund BUY Transactions – July 1, 2012 to June 30, 2013 ……….. 13

SIM Fund SELL Transactions – July 1, 2012 to June 30, 2013 .……... 15

SIM Fund Dividends Received – July 1, 2012 to June 30, 2013 ……… 17

SIM Fund Net Interest Received – July 1, 2012 to June 30, 2013 ..….. 19

SIM Fund Management Fees – July 1, 2012 to June 30, 2013 ….…….. 19

Rosenfield Family Prizes for Excellence in Security Analysis ………… 19

4

History of the Student Investment Management (SIM) Program:

Following an initial what-if “paper dollar” experiment that lasted approximately one year, a

team of students in 1990 developed a proposal for managing an actual endowment fund. The

team made a presentation before the Investment Committee of the University Trustees. On

the basis of the proposal and favorable results during the trial period, the student team was

awarded a $5 million equity account. A burst of media attention followed the initial press

release, including a spot on the NBC morning show, Today. Coverage of the first anniversary

of the Program was even more intense upon the announcement that the student account had

earned 20% or $1 million while the S&P 500 index had only returned 13.5%. Incredibly,

students eclipsed their high returns the second year with a return of 25% or $1.5 million.

From its inception and through its continuing evolution, OSU’s SIM Program has been an

integrated effort by many individuals and groups. The SIM class is the heart of the Program,

but there is much support offered from the following:

University Trustees: University Trustees proposed the project, monitored its early

development, and approved the final plan. In addition, the Board continues to supervise both

the investment and academic merits of the Program.

University Administration: The SIM class was hired as an equity manager subject to the

same conditions and limitations that apply to any other equity manager for the University

Endowment with one notable exception: The Office of Investments serves as the formal

manager of the account. So far, the office has been able to follow the advice provided by the

SIM class. Should the need arise, The Office of Investments has the authority to override

decisions or to take independent actions. This arrangement allows the SIM Program to avoid

potential legal problems regarding fiduciary responsibility. It also eliminates logistical

problems due to the academic calendar (vacations, turnover of student managers, etc.). Other

University offices are involved with the SIM Program as well, including University

Communications, which helps coordinate media relations.

Fisher College of Business: Fiscal responsibility for the management of the program rests

with the Dean’s office. The Office of External Affairs also assists with program publicity,

media and alumni relations, investment management, special events and biannual visits to

New York and Chicago.

Securities Industry: Support from the greater investment community has been extensive.

Over time, the SIM Program has found increasingly more effective channels for this support,

which now include summer internships, guest speakers for the SIM class, state-of-the-art

investment information services, and reasonably priced trade and service commissions. The

SIM Program would like to express its gratitude to the Frank Bettendorf Group of Morgan

Stanley, who invited two Fisher College of Business MBA candidates as finalists for the

Morgan Stanley Scholarship.

5

SIM Program Objectives and Philosophy:

The Ohio State University SIM Program combines traditional academic objectives with the

practical demands of hands on investment management. The trustees, administration, and

faculty view the Program as a unique opportunity for delivering high quality, pragmatic

education in an area of considerable interest to students and employers alike.

The SIM Program has three primary objectives:

To achieve a total return in excess of our benchmark, the S&P 500 index,

To preserve and maintain the real purchasing power of the fund, and

To enhance the educational experience of the students by providing them an

opportunity to apply the investment management skills and knowledge learned

in the classroom

SIM class trip to New York City – Spring 2013

Outside the classroom, the SIM Program concentrates on establishing and maintaining ties

with the investment community, which, in turn, enhances public relations for both the Fisher

College of Business and The Ohio State University. Each semester, the Program sponsors

student trips to major U.S. and international financial markets, such as New York, Chicago,

and Hong Kong. While on these trips, the SIM students meet with professionals, often Fisher

or OSU alumni, in the investment industry. Only one trip was organized during the school

year 2012-2013, as the initial trip to NYC in the Fall was cancelled due to Hurricane Sandy.

6

From an academic perspective, the SIM Program focuses on developing the students’

understanding of the securities market, specifically, and the financial markets, in general. To

do so, different analytical valuation tools are presented, developed, and hopefully mastered

throughout the class term. The valuation techniques are supplemented by theoretical

material, as well as the real world application and interaction with the SIM fund. In this way

a more complete understanding of investment theory and portfolio development is accessible

to the SIM students. Ultimately, the SIM students become active portfolio managers of the

fund. Each SIM student is responsible for a part of the portfolio in the following way:

Each student is assigned one security from the existing SIM fund. The student

analyst gives current event updates on his or her security in every class session.

The class as a whole is further divided into market sector groups, which are then

responsible for researching and analyzing that specific market sector. Periodic

reports are delivered to the class outlining overall trends and recent

developments.

Furthermore, students are charged with researching potential security additions

or replacements of the current fund securities.

The culmination of the security and market sector analysis results in class

presentations on portfolio rebalancing among sectors and also buy/hold/sell stock

recommendations. The entire class then votes on the recommended actions

based on the presented information and persuasiveness of the students.

The Rosenfield Prize: Thanks to a generous donation from OSU alumni Jack and Dan

Rosenfield, the SIM Program maintains a rewarding process in which the SIM students are

required to prepare an investment report on their assigned stocks in the SIM fund. Each

semester, two prizes are awarded: $2,500 for winner and $1,000 for the runner-up. The

students also gain a competitive advantage in security analysis for any future internship or

full-time employment opportunities.

Professor Hou (right) with summer 2012 Rosenfield Prize winner Ani Jayanth (left)

7

SIM Program Investment Process:

The investing philosophy of the SIM Program is based on a value investing approach,

specifically that fundamental analysis can be used to identify attractively priced securities in

the market. Because markets are inefficient in the short term, the market price of the

security can experience volatility around the “intrinsic value” of the security. Fundamental

analysis plays a role in determining the intrinsic value and then comparing that to how the

security is currently priced in the market. Stocks that are priced lower than the intrinsic

value are examined as potential additions to the SIM fund, while stocks that are priced higher

than the intrinsic value are not. The alignment of the SIM Program with this intrinsic value

philosophy causes the fund to be focused on large-cap value stocks with an eye towards

portfolio risk diversification as well.

In the classroom, students become active portfolio managers of the SIM Fund. They are

divided into market sector groups. Sector groups review the prior class sector presentations

and complete a detailed update. The groups present their sector outlooks to the class with

emphasis on business, economic, financial, and valuation analyses. The presentation ends

with a recommendation to overweight, market-weight, or underweight the SIM Fund’s

position relative to the S&P 500.

Following the sector round of presentations, each sector group assesses their current SIM

Fund holdings and evaluates alternative companies within the sector as possible additions.

Finally, the group makes another class presentation, in which they recommend buy, sell, or

hold for SIM Fund holdings or buy for securities outside of the SIM fund. The only

requirement for security additions is that the new stock(s) must be within the group’s

assigned market sector. After this round of presentations, a final class discussion and vote

takes place. The class engages in a group decision-making process and a majority rule applies

to the vote. The aggregate buys and sells are finalized, and trade orders get sent out to the

brokers.

To facilitate continuity, all market sector and security specific presentations are uploaded to

the SIM website under the “Class Info” section (www.fisher.osu.edu/fin/courses/sim or

www.buckeyefunds.com). Current students, as well as former and prospective students,

professors, SIM friends, and the general public, can review past class presentations on the

website. The individual investment reports of the Rosenfield Prize winners and runner-ups

are also available on the website.

8

SIM Program Performance: SIM versus S&P 500

The benchmark for the SIM fund is the S&P 500 Index. For the fiscal year ending June 30,

2013, the SIM portfolio’s net return was +19.26 % compared to +20.60 % for the S&P 500

benchmark. Figure 1 shows the relative performance of both for the fiscal year ending June

30, 2013. Figure 2 shows an overall 10-year relative performance.

Figure 1: SIM versus S&P 500 - Relative Performance - July 1, 2012 to June 30, 2013

Figure 2: SIM versus S&P 500 - Relative Performance - July 1, 2003 to June 30, 2013

80

85

90

95

100

105

110

115

120

125

Relative Performance - TTM

SIM

S&P 500 Total Return

80.00

100.00

120.00

140.00

160.00

180.00

200.00

220.00

Relative Performance - 10 Year

SIM

S&P 500 Total Return

9

Figure 3 shows the relative returns of the SIM Fund and the S&P 500 benchmark for different

time periods, including the last fiscal year, 3-year, 5-year, 10-year, and since inception time

intervals.

FY 2013

Return

3-Year

Return

5-Year

Return

10-

Year

Return

15-

Year

Return

Since Inception

(2/13/90)

S&P 500 20.60% 18.45% 7.01% 7.30% 4.24% 9.27%

SIM (Net of fees) 19.26% 11.50% 1.93% 5.07% 3.48% 7.24% Figure 3: SIM versus S&P 500 - Annualized Portfolio Return

Figure 4 gives an overview of the SIM portfolio as of June 30, 2013 and June 30, 2012. The

market value of the fund was $11.6m in 2012. Mid June 2013, the funding level of the SIM

Fund was pareds back by $2.0m, which explains the drop in total net assets despite an annual

return close to 20%. The number of portfolio holdings decreased from 31 to 27.

30-Jun-13 30-Jun-12

Inception Date 13-Feb-90 13-Feb-90

Total Net Assets $10,091,184.10 $11,576,852.73

Number of Equity Positions 27 31

Average Market Capitalization $96,153.27 $86,616.45

Average Weighted Market

Capitalization $111,369.63 $95,461.21

Average P/E Ratio 14.87 12.09

Average P/B Ratio 2.59 1.96

Average Dividend Yield 2.37% 1.56% Figure 4: SIM Fund Overview - June 30, 2013 versus June 30, 2012

10

As of fiscal year ending June 30, 2013, the SIM Fund was overweight relative to the S&P 500

in Consumer Discretionary, Consumer Staples, Energy and Utilities, while underweight in

Financials, Health Care, Industrials, Information Technology, Materials and

Telecommunication Services. The cash position in the SIM Fund represents 0.30% of the total

portfolio value. Figure 5 shows the sector weights in comparison to the benchmark.

Figure 5: SIM versus S&P 500 - Sector Allocations - June 30, 2013

Figure 6 gives an overview of selected risk measures for the SIM Fund.

Risk Measures Fiscal Year 3-Year 5-Year 10-Year Since

Inception

Standard Deviation

SIM Fund 8.29% 16.33% 21.09% 16.44% 17.41%

S&P 500 6.74% 13.57% 18.42% 14.58% 14.87%

Sharpe Ratio

SIM Fund 1.94 0.74 0.03 0.18 0.31

S&P 500 2.57 1.18 0.29 0.34 0.47 Figure 6: SIM versus S&P 500 - Risk Measures

0%2%4%6%8%

10%12%14%16%18%

Sector Allocations

S&P 500

SIM

11

Figure 7 shows the performance of the fund compared to the S&P 500 for each particular

month of the 2013 fiscal year. The SIM Fund was able to outperform its benchmark in six out

the trailing twelve month period.

Figure 7: SIM versus S&P 500 - Monthly Return Comparisons - July 1, 2012 to June 30, 2013

At the end of the 2013 fiscal year, the ten largest holidngs of the SIM Fund amounted to

$4,758,590, which equals just over 47% of the Fund’s total value. The largest holding was

Wells Fargo & Company with a market value of $501,431, equaling 4.97% of the SIM Fund.

Security Ticker Market Value SIM Fund % Wells Fargo & Company WFC $501,431 4.97%

Chevron Corp. CVX $497,028 4.93%

Apache APA $486,214 4.82%

DirecTV DTV $480,792 4.76%

Bank of America Corp. BAC $477,106 4.73%

CVS Caremark Corp. CVS $474,594 4.70%

Caterpillar Inc. CAT $470,193 4.66%

Apple Inc. AAPL $463,940 4.60%

Wellpoint Inc. WLP $458,304 4.54%

Google Inc. GOOG $448,989 4.45%

Total: $4,758,590 47.16% Figure 8: SIM Fund Top Ten Holdings - June 30, 2013

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

-1.11%

3.63%

2.73%

-1.48%

-0.44%

2.94%

4.25%

-0.51%

3.33% 3.21%

3.62%

-2.12%

1.39%

2.25% 2.58%

-1.85%

0.58%

0.91%

5.18%

1.36%

3.75%

1.93%

2.34%

-1.34%

Monthly Returns

SIM

S&P500

12

Appendix 1: SIM Fund Holdings – June 30, 2013

Ticker Security Quantity Unit

Cost

Market

Price

Market

Value

SIM Fund

%

APA Apache 5,800 $83.40 $83.83 $486,214.00 4.82%

AAPL Apple Inc. 1170 $326.39 $396.53 $463,940.10 4.60%

BAC Bank of America Corp. 37,100 $7.18 $12.86 $477,106.00 4.73%

CVS CVS Caremark Corp. 8,300 $28.77 $57.18 $474,594.00 4.70%

CAT Caterpillar Inc. 5,700 $103.56 $82.49 $470,193.00 4.66%

CVX Chevron Corp. 4,200 $84.82 $118.34 $497,028.00 4.93%

CMCSA Comcast Corp. 4,800 $40.92 $41.75 $200,400.00 1.99%

GLW Corning Inc. 27,850 $15.72 $14.23 $396,305.50 3.93%

DTV DirecTV 7,800 $48.88 $61.64 $480,792.00 4.76%

DG Dollar General Corp. 4,300 $52.70 $50.43 $216,849.00 2.15%

F Ford Motor Co. 23,350 $11.79 $15.47 $361,224.50 3.58%

GILD Gilead Sciences Inc. 8,150 $26.50 $51.27 $417,850.50 4.14%

GOOG Google Inc. 510 $587.20 $880.37 $448,988.70 4.45%

JPM JPMorgan Chase & Co 8,200 $40.06 $52.79 $432,878.00 4.29%

JOY Joy Global Inc. 6050 $57.46 $48.53 $293,606.50 2.91%

MOS Mosaic Company/The 3,000 $55.22 $53.81 $161,430.00 1.60%

NRG NRG Energy Inc. 8,800 $16.88 $26.70 $234,960.00 2.33%

PM Philip Morris International, Inc. 5,050 $71.32 $86.62 $437,431.00 4.33%

QCOM Qualcomm Inc. 6,400 $62.76 $61.09 $390,976.00 3.87%

SLB Schlumberger Ltd. 5,800 $74.23 $71.66 $415,628.00 4.12%

SJI South Jersey Industries Inc. 2,800 $60.90 $57.41 $160,748.00 1.59%

SBUX Starbucks Corp. 3,000 $54.56 $65.51 $196,530.00 1.95%

TMUS T-Mobile US Inc 8,550 $15.82 $24.81 $212,125.50 2.10%

TEVA Teva Pharmaceutical Industries Ltd. 8,900 $50.26 $39.20 $348,880.00 3.46%

WMT Wal-Mart Stores Inc. 5,700 $53.68 $74.49 $424,593.00 4.21%

WLP Wellpoint Inc. 5,600 $64.52 $81.84 $458,304.00 4.54%

WFC Wells Fargo & Company 12,150 $33.38 $41.27 $501,430.50 4.97%

13

Appendix 2: SIM Fund BUY Transactions – July 1, 2012 to June 30, 2013

Ticker Security Quantity Unit Cost Total Cost

SUMMER TERM Trade Date: August 9, 2012 Settlement Date: August 14, 2012

APA APACHE CORP. 2,200 $ 88.57 $ 194,969.06

COH COACH, INC. 1200 $ 55.66 $ 66,847.32

DHR DANAHER CORP. 900 $ 53.09 $ 47,824.65

NBR NABORS INDUSTRIES LTD 1,900 $ 15.49 $ 29,522.77

SLB SCHLUMBERGER LIMITED 700 $ 73.98 $ 51,819.11

WFC WELLS FARGO & COMPANY 2,900 $ 33.93 $ 98,527.79

FALL SEMESTER Trade Date: December 20, 2012 Settlement Date: December 26 2012

SO SOUTHERN CO 3400 $43.51 $ 148,101.62

MOS THE MOSAIC COMPANY 3000 $55.17 $ 165,650.40

SLB SCHLUMBERGER LTD 500 $70.56 $ 35,303.50

QCOM QUALCOMM INC. 4700 $62.88 $ 295,785.57

WCN WASTE CONNECTIONS INC. 10000 $33.34 $ 333,927.00

ORCL ORACLE INC. 5500 $34.16 $ 188,154.45

DHR DANAHER CORP 500 $55.81 $ 27,930.00

AAPL APPLE INC. 110 $530.15 $ 58,322.00

ONXX ONYX PHARMACEUTICALS INC. 1300 $80.42 $ 104,613.47

SPRING SEMESTER Trade Date: April 25, 2013 Settlement Date: April 30, 2013

WFC WELLS FARGO & CO 4150 37.699 $ 156,658.35

SLB SCHLUMBERGER LTD 2700 $73.55 $ 198,716.76

SJI SOUTH JERSEY IND INC 2800 $60.85 $ 170,526.44

QCOM QUALCOMM INC 1700 $62.24 $ 105,885.18

PCS METRO PCS COMMUNICATIONS 3100 $11.90 $ 37,034.46

ONXX ONYX PHARMACEUTICALS INC 700 $94.75 $ 66,356.57

LNC LINCOLN NTL CORP IND 2200 $33.93 $ 74,755.12

JOY JOY GLOBAL INC 6050 $57.41 $ 347,636.03

GILD GILEAD SCIENCE 950 $51.67 $ 49,131.15

DTV DIRECTV COM 1400 $56.60 $ 79,310.00

DG DOLLAR GEN CORP NEW COM 4300 $52.65 $ 226,606.99

CVX CHEVRON CORP 600 $119.77 $ 71,890.20

CMCSA COMCAST CORP 4800 $40.87 $ 196,415.52

CAT CATERPILLAR INC 1500 $84.70 $ 127,121.25

ALB ALBEMARLE CORPORATION 1500 $59.25 $ 88,950.00

AAPL APPLE INC 370 $407.74 $ 150,880.97

GLW CORNING INC 11650 $14.21 $ 166,129.00

PCS METRO PCS COMMUNICATIONS 14000 $11.86 $ 166,040.00

14

Appendix 3: SIM Fund SELL Transactions – July 1, 2011 to June 30, 2013

Ticker Security Quantity Unit Cost Total Cost

SUMMER TERM Trade Date: August 9, 2012 Settlement Date: August 14, 2012

CVS CVS CAREMARK CORP 1900 $45.35 $ 86,058.57

AAPL APPLE INC. 100 $620.44 $ 62,037.11

CVX CHEVRON CORP 1300 $112.87 $ 146,666.74

GM GENERAL MOTORS CO 1600 $20.67 $ 32,990.29

CAT CATERPILLAR INC. 500 $88.21 $ 44,078.51

CLF CLIFFS NATURAL RESOURCES INC. 1500 $44.67 $ 66,929.84

GILD GILEAD SCIENCES INC. 4000 $57.05 $ 227,993.68

EOG EOG RESOURCES INC. 2200 $110.22 $ 242,377.14

GLW CORNING INC. 3000 $11.47 $ 34,244.22

DTV DIRECTV-CLASS A 1000 $49.64 $ 49,586.88

BAC BANK OF AMERICA CORP 3000 $7.73 $ 23,053.58

WLP WELLPOINT INC. 800 $57.12 $ 45,657.45

WM WASTE MANAGEMENT INC. 800 $34.79 $ 27,793.85

WMT WAL-MART STORES INC. 1250 $74.01 $ 92,441.92

PM PHILIP MORRIS INTERNATIONAL INC. 200 $91.65 $ 18,320.20

PFE PFIZER INC. 4500 $23.92 $ 107,417.08

NRG NRG ENERGY INC. 2700 $20.71 $ 55,783.17

LNC LINCOLN NATIONAL CORP 1000 $23.20 $ 23,144.48

JPM JP MORGAN CHASE & CO 1600 $37.03 $ 59,171.63

INTC INTEL CORPORATION 1300 $26.85 $ 34,841.55

GOOG GOOGLE INC. 120 $643.71 $ 77,237.46

HPQ HEWLETT-PACKARD COMPANY 16000 $19.20 $ 306,402.71

FALL SEMESTER Trade Date: December 20, 2012 Settlement Date: December 26, 2012

WM WASTE MGMT INC 9200 $33.88 $ 311,215.21

NRG NRG ENERGY INC 13700 $22.98 $ 314,151.75

NBR NABORS INDUSTRIES LTD 22700 $14.89 $ 336,842.26

JPM JPMORGAN CHASE & CO 1000 $43.97 $ 43,920.81

GM GENERAL MTRS CO 19900 $27.15 $ 539,186.35

INTC INTEL CORP 7500 $20.94 $ 156,672.98

GILD GILEAD SCIENCE 1300 $73.84 $ 95,919.25

DTV DIRECTV COM 2000 $51.23 $ 102,359.30

GLW CORNING INC 19700 $12.79 $ 250,903.40

COH COACH INC 6000 $58.19 $ 348,841.17

CLF CLIFFS NATURAL RESOURCES INC 6300 $35.46 $ 223,084.29

SPRING SEMESTER Trade Date: April 25, 2013 Settlement Date: April 30, 2013

BAC BANK OF AMERICA 9,400 $12.52 $ 117,215.36

CVS CVS CAREMARK 1,400 $58.22 $ 81,436.31

15

F FORD MOTOR CO 3,150 $13.50 $ 42,366.86

JPM JPMORGAN CHASE & CO 2,000 $49.43 $ 98,757.98

KORS MICHAEL KORS HOLDINGS 4,350 $56.65 $ 246,205.35

ORCL ORACLE CORP 13,300 $32.46 $ 431,043.32

PFE PFIZER INC. 9,400 $30.45 $ 285,753.58

SO SOUTHERN CO 3,400 $48.04 $ 163,162.34

TGT TARGET CORP 4,800 $70.90 $ 340,072.37

WCN WASTE CONNECTIONS INC. 10,000 $38.43 $ 383,792.39

WMT WAL-MART STORES INC. 550 $78.76 $ 43,289.58

NIHD NII HOLDINGS INC. 19,000 $8.98 $ 169,639.57

END OF FISCAL YEAR Trade Date: June 21, 2013 Settlement Date: June 26, 2013

LNC LINCOLN NATIONAL CORP 14600 $35.60 $ 519,047.23

INTC INTEL CORPORATION 8,100 $24.20 $ 195,595.38

ALB ALBEMARLE CORP 3300 $61.68 $ 203,380.40

DHR DANAHER CORP 6,200 $62.38 $ 386,458.49

ONXX ONYX PHARMACEUTICALS INC. 2000 $82.72 $ 165,345.12

GOOG GOOGLE INC 150 $880.12 $ 132,008.82

16

Appendix 4: SIM Fund Dividends Received – July 1, 2012 to June 30, 2013

Company Date Dividend Shares Total Net

Amount

ALBEMARLE CORP

07/01/2012 $0.20 1,800 $360

10/01/2012 $0.20 1,800 $360

01/01/2013 $0.20 1,800 $360

04/01/2013 $0.24 1,800 $432

APACHE CORP

11/21/2012 $0.17 2,200 $374

02/22/2013 $0.17 5,800 $986

05/22/2013 $0.20 5,800 $1,160

APPLE INC

08/16/2012 $2.65 790 $2,094

11/15/2012 $2.65 690 $1,829

02/14/2013 $2.65 800 $2,120

05/16/2013 $3.05 1,170 $3,569

BANK OF AMERICA CORP

09/28/2012 $0.01 46,500 $465

12/28/2012 $0.01 46,500 $465

03/22/2013 $0.01 46,500 $465

06/28/2013 $0.01 37,100 $371

CVS CAREMARK CORP

08/03/2012 $0.16 11,600 $1,885

11/02/2012 $0.16 9,700 $1,576

02/04/2013 $0.23 9,700 $2,183

05/03/2013 $0.23 9,700 $2,183

CATERPILLAR INC

08/20/2012 $0.52 4,700 $2,444

11/20/2012 $0.52 4,200 $2,184

12/31/2012 $0.52 4,200 $2,184

05/20/2013 $0.52 4,200 $2,184

CHEVRON CORP

09/10/2012 $0.90 3,600 $3,240

12/10/2012 $0.90 3,600 $3,240

03/11/2013 $0.90 3,600 $3,240

06/10/2013 $1.00 4,200 $4,200

CLIFFS NATURAL RESOURCES

INC

08/31/2012 $0.63 6,300 $3,938

12/03/2012 $0.63 6,300 $3,938

COACH INC 10/01/2012 $0.30 6,000 $1,800

12/27/2012 $0.30 6,000 $1,800

CORNING INC

09/28/2012 $0.08 35,900 $2,693

12/14/2012 $0.09 35,900 $3,231

03/28/2013 $0.09 16,200 $1,458

06/28/2013 $0.10 27,850 $2,785

DANAHER CORP

07/27/2012 $0.03 4,800 $120

10/26/2012 $0.03 5,700 $143

12/28/2012 $0.03 5,700 $143

04/26/2013 $0.03 6,200 $155

EOG RESOURCES INC 07/31/2012 $0.17 2,200 $374

17

Company Date Dividend Shares Total Net

Amount

FORD MOTOR CO 03/01/2013 $0.10 26,500 $2,650

06/03/2013 $0.10 23,350 $2,335

HEWLETT-PACKARD CO 07/05/2012 $0.13 16,000 $2,112

INTEL CORP

09/01/2012 $0.23 16,900 $3,803

12/01/2012 $0.23 15,600 $3,510

03/01/2013 $0.23 8,100 $1,823

06/01/2013 $0.23 8,100 $1,823

JPMORGAN CHASE & CO

07/31/2012 $0.30 12,800 $3,840

10/31/2012 $0.30 11,200 $3,360

01/31/2013 $0.30 10,200 $3,060

04/30/2013 $0.30 10,200 $3,060

JOY GLOBAL INC 06/18/2013 $0.18 6,050 $1,059

LINCOLN NATIONAL CORP

08/01/2012 $0.08 13,400 $1,072

11/01/2012 $0.08 12,400 $992

02/01/2013 $0.12 12,400 $1,488

05/01/2013 $0.12 12,400 $1,488

MOSAIC CO/THE 02/21/2013 $0.25 3,000 $750

05/16/2013 $0.25 3,000 $750

NRG ENERGY INC

08/15/2012 $0.09 25,200 $2,268

11/15/2012 $0.09 22,500 $2,025

02/15/2013 $0.09 8,800 $792

05/15/2013 $0.12 8,800 $1,056

ORACLE CORP

08/03/2012 $0.06 7,800 $468

11/02/2012 $0.06 7,800 $468

12/21/2012 $0.18 7,800 $1,404

PFIZER INC

09/05/2012 $0.22 13,900 $3,058

12/04/2012 $0.22 9,400 $2,068

03/05/2013 $0.24 9,400 $2,256

PHILIP MORRIS

INTERNATIONAL IN

07/12/2012 $0.77 4,250 $3,273

10/11/2012 $0.85 4,050 $3,443

01/11/2013 $0.85 5,050 $4,293

04/12/2013 $0.85 5,050 $4,293

QUALCOMM INC 03/27/2013 $0.25 4,700 $1,175

06/26/2013 $0.35 6,400 $2,240

SCHLUMBERGER LTD

07/13/2012 $0.28 2,900 $798

10/12/2012 $0.28 2,600 $715

01/11/2013 $0.28 2,600 $715

04/12/2013 $0.31 3,100 $969

SOUTHERN CO 03/06/2013 $0.49 3,400 $1,666

STARBUCKS CORP 02/22/2013 $0.21 3,000 $630

05/24/2013 $0.21 3,000 $630

TARGET CORP 03/10/2013 $0.36 4,800 $1,728

18

Company Date Dividend Shares Total Net

Amount

TEVA PHARMACEUTICAL

INDUSTRIES

(net amount includes foreign tax

withheld)

09/04/2012 $0.25 8,900 $1,854

12/03/2012 $0.26 8,900 $1,801

03/07/2013 $0.31 8,900 $2,375

06/03/2013 $0.32 8,900 $2,387

WAL-MART STORES INC

09/04/2012 $0.40 6,600 $2,624

12/27/2012 $0.40 5,350 $2,127

04/01/2013 $0.47 6,250 $2,938

06/03/2013 $0.47 5,700 $2,679

WASTE CONNECTIONS INC 02/19/2013 $0.10 10,000 $1,000

WASTE MANAGEMENT INC 09/21/2012 $0.36 9,200 $3,266

12/14/2012 $0.36 9,200 $3,266

WELLPOINT INC

09/25/2012 $0.29 5,600 $1,610

12/21/2012 $0.29 5,600 $1,610

03/25/2013 $0.38 5,600 $2,100

06/25/2013 $0.38 5,600 $2,100

WELLS FARGO & CO

09/01/2012 $0.22 5,100 $1,122

12/01/2012 $0.22 8,000 $1,760

03/01/2013 $0.25 8,000 $2,000

06/01/2013 $0.30 12,150 $3,645

19

Appendix 5: SIM Fund Net Interest Received – July 1, 2012 to June 30, 2013

Date Total Amount

Dreyfus Cash Management Fund

7/5/12 $ 38.70

8/2/12 $ 42.59

9/2/12 $ 56.54

10/4/12 $ 21.77

11/2/12 $ 21.74

12/2/12 $ 18.25

1/4/13 $ 21.38

2/2/13 $ 14.16

3/4/13 $ 13.32

4/3/13 $ 15.78

5/2/13 $ 15.69

6/4/13 $ 14.44

Appendix 6: SIM Fund Management Fees – July 1, 2012 to June 30, 2013

Date Portfolio Value Fee Amount

Dreyfus Cash Management Fund

9/30/2012 $ 10,598,230.97 $ 25,595.20

12/31/2012 $ 10,728,310.42 $ 26,807.36

3/31/2013 $ 11,526,558.75 $ 28,794.43

6/30/2013 $ 10,091,184.10 $ 25,207.62

Appendix 6: Rosenfield Family Prizes for Excellence in Security Analysis – July 1,

2012 to June 30, 2013

Date Winner SIM Security Runner-Up SIM Security

Summer 2012 Ani Jayanth SLB - Schlumberger Limited Gary Foust GOOG - Google Inc.

Autumn 2012 Matthew

Anderson CAT - Caterpillar, Inc. Juliette Buob

CVS - CVS Caremark

Corp.

Spring 2013 Adam Gough WMT - Wal-Mart Stores Inc. Jon Koval MOS - The Mosaic

Company