Investment Policy Statement
Investment Policy Summary
The portfolio is invested in the interest of maximizing annual returns while implementing a strategy aimed at long term growth. Pledges are gathered for 100% investment purposes, and tracked on an annual fund basis. The principal goal for annual activities is 1 million dollars in pledges with a minimum rate of return of 8%.
General Investment Objectives
Primary
- Profit a contributory donation of at least 8% of total pledged amount to The Timmy Foundation.
Secondary
- Educate students in the field of socially responsible equity investing by teaching the skills necessary to manage one’s own portfolio.
Asset Allocation
At any time in the investment period, assets may be distributed based on the following allocation guidelines:
- 90-100% Equity
- 0-10% Cash
Asset Class/ Style Diversification Details
The target asset allocation is intended to be general in nature. Deviations within each asset class are considered normal, and the following should be considered merely as guidelines:
Asset Class/Style |
Allocation |
|---|---|
Large Cap Core (Passive) |
30.0% |
Large Cap Growth |
20.0% |
Large Cap Value |
18.0% |
Small Cap Growth |
12.0% |
Small Cap Value |
8.0% |
International |
12.0% |
Total: |
100.0% |
Decision Making and Limits
Initial allocation of the Virtu fund will be determined by the investment team coordinator based upon the recommendations of the investment team members. Reallocations of the fund may be recommended by investment team members and are subject to the approval of the investment team coordinator and the leadership board as a whole.
Equity Diversification Guidelines
- Initial purchase of any given equity shall not exceed 10% of the total portfolio value.
- Not more than 25% of the market value of the portfolio should be invested in any one sector.
- All equity holdings shall be restricted to readily available securities of corporations that are actively traded on the major U.S. exchanges.
Ethical Standard Guidelines
- The investment team is dedicated to investing in companies that uphold the highest ethical standards.
- If at any time a company in the Virtu portfolio is found to violate the ethical principles of the project, the equity will be sold immediately and the money will be reinvested elsewhere.