SMIF Student Teams
What is a SMIF Team made up of?
The SMIF Team is made up of students who gain experience by acting analysts in real business situations by managing a fund. Due to the permanent transitional nature of the Fund, a strong emphasis is put on documenting the actions of the analysts in order that future analysts can understand the reasoning for each investment. As new demands are placed on the Fund and as the Fund evolves, the responsibilities also change. Changes may occur during the year and are not limited to when the Fund changes hands.
SMIF Selection Process
The selection process is designed to be consistent with the philosophy of the Fund. The process described below has evolved based on two main criteria: consistency with Fund objectives and fairness to the students. The interview allows prospective students an opportunity to demonstrate their level of skill and interest in the management of the Fund. Adherence to the procedures outlines below is critical to insure fair treatment to all students. A time line showing the approximate timings during the semester of each event is provided on the application form.
Pre-requisites for being accepted as an analyst:
- Enrolled in the business program with upper division status
- Completion of Corporate Finance (FIN3150) and Investments (FIN3750) or current enrollment in Investments
The Chief Administrator is the student principally responsible for the day-to-day operations of the fund. He or she will work with the faculty advisor in establishing the schedule of presentations for each semester. The administrator has the responsibility for coordinating the activities of the other officers and students in the fund. The chief administrator is also the person responsible for representing the fun to the public. Some of the responsibilities include:
- Act as the contact person for the faculty advisor
- Coordinate and monitor the activities of the analysts
- Collect status reports for the Fund
- Verify up-to-date documentation of trades is maintained
- Facilitate the meetings
- Organize and direct the compilation of the annual report
- Coordinate the preparation for the annual advisory board meeting
The operations team is responsible for the maintenance and control of the physical facilities under the Fund’s control. A filing system will be maintained complete with folders on each company containing the current annual report and information used in connection with the buy and sell decisions. Folders should also be maintained of the Fund’s performance, meeting minutes, and agendas.
The accounting team is responsible for keeping the official books for the Fund. They update records weekly to track performance, trade activity, and price fluctuation. The accountants also serve as liaison to the administrator by providing accurate accounting reports and statements of activity on a timely basis. Responsibilities also include preparation of the Fund’s annual report and working with an outside auditor in preparation for the Fund’s audit. Responsibilities are shared with a designated back-up accountant and all members participate in constructing the annual report.
The economics team will work with the analysts in establishing the asset allocation plan at the beginning of the semester. They have particular responsibility for working on the development of economic assumptions. During the course of the semester, the economists are responsible for providing weekly updates on the U.S. and world economics.Technical
The technical analysts are responsible for providing educational tutorials on tools and techniques used in technical analysis. Additionally, the technical analysts review each of the buy/sell recommendations put forth by the fundamental analysts to gauge appropriate entry/exit points.
Quantitative Analysis Team
The quantitative team analyzes the portfolio on a monthly basis to ascertain performance attribution of the sector and security selections. The quantitative teams help guide sector allocation decisions and also provide mathematical support for the Fund’s periodic long/short market risk-neutral positions.
Other Informal Positions
Although not a formal office of the Fund, the Chairperson of Public Relations is also an important position. He or she will help schedule and plan the various activities of the Fund that involve people outside of the normal Fund Membership and also be responsible for generating publicity about the Fund. The Public Relations Chairperson will also be in charge of maintaining a scrapbook for the Fund. This position may be shared by a number of people.
Analysts are responsible for the day-to-day operations and decisions of the Fund. They are responsible for the operation of the Fund in a manner consistent with the procedures describes on this site. The faculty advisor and the Finance Department faculty are available for consultation and advice. The faculty advisor will also monitor the actions of all officers and analysts and hold them responsible for consistency and diligence of their behavior within the guidelines. The main interaction with the advisory board is during the meeting held each year. The meeting is an important component of the program and will be treated with attention to professional standards and protocol. All analysts are responsible for the actual operations of the Fund. Analysts run the investment screens, research candidate companies, and buy and sell stocks in the Fund. Their decisions must be consistent with the philosophy of the Fund. A partial list of the analysts’ duties are given below.
- Monitor the stocks in their respective part of the fund
- Establish and perform investment screens
- Perform fundamental research
- Evaluate new investments
- Document, in writing, the basis for a trade
- Construct status reports
- Work in teams to analyze stocks