About BUIG

Executive Summary - 10k 2015

As 2015 came to an end, the Bellarmine University Investment Group (BUIG) recorded its first full calendar year of performance. I am pleased to announce that the Sustainable Equity Balanced Fund (SEBF) had an absolute return of 1.45% over the period. Compared to our benchmark, a 70/30 weighted blend of the S&P 500 and Barclay’s Aggregate Bond Index, we contributed 1.81% of outperformance. In addition, we compare our absolute return to 958 professionally managed mutual funds in the balanced asset allocation category. According to Morningstar Direct, The SEBF’s performance placed in the top 5th percentile in this balanced fund category for 2015.

By staying true to our disciplined investment philosophy, we were able to successfully manage the SEBF in light of volatile market conditions stemming from a strong U.S. dollar, low commodity prices, global growth worries, and uncertainty surrounding Fed policy. We believe the top-down approach incorporated into our investment process, coupled with consistent fundamental analysis and portfolio due diligence, has strategically positioned our holdings to outperform our benchmark and the broader market on a regular basis. Prudent sector bets and making tactical alterations to our asset allocation added further value. Although our market sentiment shifts towards a more pessimistic outlook for 2016, we are confident that our investment approach will position us for continued outperformance. The SEBF looks to incorporate exposure to the alternative asset class in hopes of unlocking further value as we anticipate flat to slightly negative returns across broader indices.

With strong performance headed into the new year, the future of the SEBF looks promising. I would like to extend a special thank you to everyone dedicated to this invaluable experience. Our success could not have been possible without the untethered support from our advisor Carl Hafele, the Executive Officers, general members, and all colleagues.

Best Regards,
Rich Dvorak - President

New Year – New BUIG

The BUIG Executive have been in the process of restructuring our organization in order to provide members with additional opportunities to be involved with the SEBF. Looking to be implemented at the beginning of 2016, we hope to reduce the barriers between Executive Officers and general members so that our group can better capitalize on our collective efforts when managing the portfolio. We are optimistic that this will only further contribute to the outstanding hands-on experience that members gain from the fundamental research, technical analysis, and portfolio management our organization offers.

Changes that will be made include consolidating the previous seven member investment panel into three remaining positions: President, Vice President of Investment Relations, and Vice President of Investment Strategy. Concentrating these roles will lead to a more efficient and effective investment decision making as these three Executive Officers will have final voting rights on any proposed transaction, which requires a unanimous decision. We are also introducing new positions of Senior and Junior Analysts into our structural hierarchy. There will be six Senior Analysts who will specifically cover one or two sectors of the market. Senior Analyst will maintain a watch list for his or her sector(s) and remain up to date on any changes within the companies that we currently hold. Also, Senior Analysts will prepare and present any transaction proposals to the Executive Officers. As for the Junior Analysts, they will be assigned specific stocks to cover that we currently hold in our portfolio. They will prepare a weekly report on their stocks to present to the Senior Analyst who head the respective sector in addition to reporting any new investment ideas or proposals to the Senior Analysts.

We are also excited to announce our plan to now meet weekly instead of biweekly. During our meetings we will conduct collaborative research among all members for a more hands-on experience. We believe that collaborative research will bring our members closer together, encourage the sharing of investment ideas, and facilitate more elaborate security analysis. This also provides everyone the chance to stay up to date on and involved with the entire portfolio. We will continue to invite guest speakers to visit campus and speak to our organization. We are confident in the changes that we have made and believe everyone involved will have a more valuable experience under this new structure.