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SMF Annual Investment Report


       SMF Annual Investment Report
          2nd & 3rd Quarters – 2011

ityUniversityStudentManagedFu        11/7/2011

 SMF Investment Report Q2 &Q3 2011               Page 1
Table of Contents

      Foreword ....................................................................................................................................... 3
      Fall 2011 Portfolio Managers .................................................................................................. 4-12
      SMF Historical Cash Flows ........................................................................................................ 13

Portfolio Performance
      Transaction History – Purchases: Q2 & Q3 2011 ...................................................................... 14
      Transaction History – Sales: Q2 & Q3 2011 .............................................................................. 15
      Portfolio Performance: Q4 2008-Q3 2011 ................................................................................. 16
      Portfolio Performance Since Inception ...................................................................................... 17
      Unrealized Gains and Losses: Q2 & Q3 2011............................................................................ 18

Fund Allocation
      SMF vs. S&P Sector Holdings: 9/30/2011 ................................................................................. 19
      SMF vs. S&P Sector Holdings Variation ................................................................................... 20
      Portfolio Allocation: 9/30/2011 .................................................................................................. 21
      Portfolio Allocation by Market Cap: 9/30/2011 ......................................................................... 22
      Risk Analysis .............................................................................................................................. 23

      SMF Investment Policy ......................................................................................................... 24-26
      SMF Code of Ethics .............................................................................................................. 27-28
      The Bottom Line .................................................................................................................... 29-30

SMF Investment Report Q2 &Q3 2011                                                                                                             Page 2
Upon entering the first class period of the Student Managed Fund 2011, students were universally aware of the
volatility and uneasiness that have been reflected in the market over the last several years. As new investors,
our class has been given the means and the direction to excel in the environment of depressed prices and
significant opportunities. Dr. Philip Cooley, the professor and co-founder of the Student Managed Fund,
continues to stress the active approach to investing, as well as the level of determination necessary to meet
various responsibilities aligned with the purpose of implementing a successful portfolio management strategy.

Throughout the Fund’s existence, managers have fulfilled their fiduciary responsibilities and through
discipline and sound investing techniques have earned steady returns on behalf of Trinity University. It is the
duty of our class to enhance what has already been done and contribute to the Student Managed Fund’s
already stellar reputation. After reading Peter Lynch’s One Up on Wall Street, managers were exposed to the
fundamentals of bottom-up analysis as well as the mindset of a value investor, forever attempting to beat the
benchmark of the S&P 500 index. Most importantly, as investors, we have studied what it means to have a
contrarian approach to stock picking.

Our 14th Student Managed Fund class is faced with a plethora of unique opportunities. As of March 1, 2011,
the Fund’s value has been dramatically increased resulting in both, higher expectations and expanded potential
for this year’s managers. Furthermore, a global orientation is now prevalent within discussions and stock
reports since a large percentage of the managers this year are international students.

Current SMF managers are especially enthusiastic as they strive to develop an active management strategy for
the fund. At the beginning of each meeting, managers are briefed on current issues that affect the entire
market as well as our specific portfolio. Each student has been assigned an existing stock in the portfolio that
he or she monitors, thus, keeping up with any necessary information pertaining to company news and
operations. Managers continue to undertake numerous projects every quarter in order to improve efficiency in
decision making and enhance classroom procedures. Projects may vary from simple sell reports to more
detailed analyses of current issues or opportunities that inform the work of the entire class.

It is the goal of each student manager to combine strict adherence to the SMF Investment Policy with diligent
research and clarity of thought, to provide superior returns relative to the S&P 500 index. We passionately
pursue the Fund’s mission and strive to preserve and enhance the monetary value of the assets allocated by the
Trustees of Trinity University.

Finally, as the managers of the Trinity University Student Managed Fund we would like to express our sincere
gratitude to the Board of Trustees and Dr. Philip Cooley for providing the managers with this unique
opportunity to extend the learning experience beyond the classroom, as well as for offering students a chance
to develop a real world understanding of money management that distinguishes this group from those in all
other undergraduate programs.

On behalf of the Student Managed Fund Class of 2011-2012,

    Nino Naridze                           Brian Pabian                                         Ben Smith

SMF Investment Report Q2 &Q3 2011                                                                         Page 3
Fall 2011 Portfolio Managers

 Lloyd Bolton

     Hometown: Houston, TX
     Major(s): Finance, History
     Dream Job: Intelligence Officer, USMC
     Career plans: USMC, finished OCS,
      commission as a 2nd lieutenant after
      graduation this year.
     Favorite Investment Quote: "I never let
      my schooling interfere with my education."
      - Mark Twain

 Daniel Kim

     Hometown: Sao Paulo, Brazil
     Major(s): Business Administration –
     Dream Job: Sports Team Owner
      (preferably basketball or soccer)
     Plans after Trinity: Return to Brazil and
      hopefully work with public infrastructure
      development or the import-export business.
     Favorite Investment Quote: "Risk comes
      from not knowing what you're doing." -
      Warren Buffett

 Peter Philpott

     Hometown: London, England
     Major(s): Business Administration –
     Dream Job: Fund Manager
     Plans after Trinity: Plan to return to
      London after graduation to work.
     Favorite Investment Quote: "October is
      one of the peculiarly dangerous months to
      speculate in stocks. The others are July,
      January, September, April, November, May,
      March, June, December, August, and

SMF Investment Report Q2 &Q3 2011                  Page 4
Fall 2011 Portfolio Managers
 Kyle Porter

     Hometown: Albuquerque, NM
     Major(s): Finance and Accounting
     Dream Job: Own and operate a chain of
      sports specific gyms.
     Plans after Trinity: I plan to have an
      internship this upcoming summer in an area
      of finance, preferably something that is
      involved in buying and selling stocks.
     Favorite Investment Quote: "Buy low, sell

 Dustin Nelson

     Hometown: Houston, TX
     Major(s): Accounting and Finance (major)
      Sports Mgmt (minor)
     Dream Job: Venture capitalist or CEO of a
      video gaming league/enterprise
     Plans after Trinity: Receive a Master's in
      Accounting or Finance after I determine my
      path of interest.
     Favorite Investment Quote: "The three
      most important things when evaluating a
      company is Earnings, Earnings, Earnings."

 Lukas Sheridan

     Hometown: San Antonio, TX
     Major(s): Finance
     Dream Job: Apache pilot in the army
     Plans after Trinity: Becoming a 2nd
      lieutenant in the US Army.
     Favorite Investment Quote: "If you can't
      convince yourself 'when I'm down 25%, I'm
      a 'buyer', and banish forever the fatal
      thought 'when I'm down 25%, I'm a seller',
      then you’ll never make a decent profit in

SMF Investment Report Q2 &Q3 2011                  Page 5
Fall 2011 Portfolio Managers
 Ruth Easterling

     Hometown: Chicago, IL
     Major(s): Business Finance, Urban Mgmt,
      Minor - Spanish
     Dream Job: City Manager
     Plans after Trinity: Intern at San Antonio
      Chamber of Commerce. I hope to meet and
      work with the microfinance team at
      ACCION for a future position.
     Favorite Investment Quote: "Show me a
      day when the world wasn't new." - Sister
      Barbara Harce

 Rachel Garrett

     Hometown: Round Rock, TX
     Major(s): Econ and Finance
     Dream Job: Economic consultant for a UN
     Plans after Trinity: Find an international
      finance position abroad and after a couple
      years in the work force, attend grad school
      for an advanced degree international
     Favorite Investment Quote: "A lousy
      cheap stock is just as risky as a lousy
      expensive stock." – Peter Lynch

 Vikram Singh

     Hometown: Houston, TX
     Major(s): Finance and Marketing
     Dream Job: CEO of
      hospitality/resort/casino Company
     Plans after Trinity: Looking for an
      internship in wealth management or mutual
     Favorite Investment Quote: “Leave no
      stone unturned to help your clients realize
      maximum profits from their investment.”
       - Arthur Nielsen

SMF Investment Report Q2 &Q3 2011                   Page 6
Fall 2011 Portfolio Managers

 Michael Micheletti

     Hometown: Kingwood, TX
     Major(s): Accounting, Finance
     Plans after Trinity: Internship with
      Insperity Inc.
     Favorite Investment Quote: "How low
      can that stock price go? Zero!" – Dr. Cooley

 Ben Smith

     Hometown: Galveston, TX
     Major(s): Business Administration –
     Dream Job: Manager of an investment firm
     Plans after Trinity: Looking for a job as a
      financial analyst and become CFA certified
     Favorite Investment Quote: “The time to
      buy is when there’s blood in the streets.”-
      Baron Rothschild

 Juan Pablo Villamarin

     Hometown: Bogota, Colombia
     Major(s): Econ, minor - history
     Dream Job: Soccer agent
     Plans after Trinity: Economic analyst at
      an investment banking institution
     Favorite Investment Quote: "Have the
      guts, the information, and sufficient time
      and it will be easier than chess." -
      Corporation Nule

SMF Investment Report Q2 &Q3 2011                    Page 7
Fall 2011 Portfolio Managers
 Kirk Craig

     Hometown: Syracuse, NY
     Major(s): Finance
     Dream Job: Venture capitalist
     Plans after Trinity: Intern at Sendero
      Wealth Management, I hope to find an
      internship this summer in NYC with a bulge
      bracket firm
     Favorite Investment Quote: "The market
      can stay irrational longer than you can stay

 Andrew Webb

     Hometown: Littleton, CO
     Major(s): Accounting, Finance, Russian
     Dream Job: FBI special agent
     Plans after Trinity: Accounting internship
      my senior year
     Favorite Investment Quote: "Invest in the
      company, not in the market." – Peter Lynch

 Daniel Ortega

     Hometown: Veracruz, Mexico
     Major(s): Finance and Math
     Dream Job: Investment banker or equity
      fund manager
     Plans after Trinity: Currently work with
      Guerrero Financial Corp
     Favorite Investment Quote: "Only buy
      something that you'd be perfectly happy to
      hold if the market shut down for ten years."
      –Warren Buffett

SMF Investment Report Q2 &Q3 2011                    Page 8
Fall 2011 Portfolio Managers
 Miroslav Getov

     Hometown: Pazardjik, Bulgaria
     Major(s): Finance and Accounting, Minor
      in Economics.
     Dream Job: Small shop owner with a
      substantial stock portfolio.
     Plans after Trinity: Looking for a summer
      finance internship.
     Favorite Investment Quote: "Just because
      the price goes up doesn't mean you're right.
      Just because the price goes down doesn't
      mean you're wrong."

 Thavindra Ekanayake

     Hometown: Colombo, Sri Lanka
     Major(s): Accounting and Finance; Minor-
     Dream Job: Work with the world bank,
      ADB (Asian Development Bank) or CFO
      with a major firm.
     Plans after Trinity: I worked with a
      stockbroker firm this summer back home
      and loved it! I am looking to get an
      internship this summer focusing on
     Favorite Investment Quote: "The best
      time to sell stocks is never." – Warren

 Juan Leon

     Hometown: Bogota, Colombia
     Major(s): Economics and Political Science.
     Dream Job: Head my own investment firm.
     Plans after Trinity: CFA candidate,
      investment banking.
     Favorite Investment Quote: “I don’t think
      there is any other quality so essential to
      success of any kind as the quality of
      perseverance. It overcomes almost
      everything, even nature.” – John D.

SMF Investment Report Q2 &Q3 2011                    Page 9
Fall 2011 Portfolio Managers
 Ashley Snow

     Hometown: Broomfield, Colorado
     Major(s): Business (Accounting) and
     Dream Job: Be financially independent
     Plans after Trinity: Auditing and Deloitte
     Favorite Investment Quote: “In investing
      money, the amount of interest you want
      should depend on whether you want to eat
      well or sleep well.” – J. Kenfield Morley

 Nino Naridze

     Hometown: Tbilisi, Georgia
     Major(s): B.S. in Finance and
      Management; B.A. in Russian; Minor:
     Dream job: Medical Malpractice Law
     Plans after Trinity: Law School
     Favorite Investment Quote: “Choosing a
      stock is like choosing a wife…so many
      things to consider.” – Dr. Hubbard

 Brian Pabian

     Hometown: Bedford, Massachusetts
     Major(s): B.S. in Business (Finance)
     Dream job: Boston Red Sox 2nd Baseman
     Plans after Trinity: Career in
      investments/corporate finance.
     Favorite Quote: “We simply attempt to be
      fearful when others are greedy and to be
      greed only when others are fearful.” –
      Warren Buffett

SMF Investment Report Q2 &Q3 2011                  Page 10
Fall 2011 Portfolio Managers
 Neha Panjwani

     Hometown: Sugar Land, TX
     Major(s): Business (Accounting and
     Dream Job: Investment banking
     Plans after Trinity: Auditing at PWC
     Favorite Investment Quote: “Logic is the
      subject that’s helped me the most in picking
      stocks, if only because it taught me to
      identify the peculiar illogic of Wall Street.”
      – Peter Lynch

 Jake Reynolds

     Hometown: Austin, TX
     Major(s): Biochemistry and Molecular
      Biology; minor in Business
     Dream Job: Own a private medical
     Plans after Trinity: Med school
     Favorite Investment Quote: “You only
      have to win 60% of the time to win big
      overall.” – Peter Lynch

 Steven Mickey

     Hometown: Dallas, TX
     Major(s): Business (Finance and
      Marketing); minors in Economics and
     Dream Job: Investment banker
     Plans after Trinity: Investment banking
     Favorite Investment Quote: “Beware of
      geeks bearing formulas.” – Warren Buffett

SMF Investment Report Q2 &Q3 2011                      Page 11
Fall 2011 Portfolio Managers

                                        2011 - 2012
                                    Student Managed Fund

SMF Investment Report Q2 &Q3 2011                          Page 12
 SMF Historical Cash Flows
 Date                                                                                                  Cash Flow

  I.      July 1, 1998                                                                                 $500,000

 II.      September 15, 1999                                                                             (2,000)
          December 1, 1999                                                                               (2,000)
          March 1, 2000                                                                                  (2,000)

III.      March 4, 2005                                                                                 100,000
          April 18, 2005                                                                                100,000
          April 25, 2005                                                                                157,650
          June15, 2005                                                                                    7,602

IV.       March 1, 2011                                                                               1,533,445

V.        Principal Value of Cash Flows                                                              $2,359,252
          Portfolio Value as of September 30, 2011                                                    2,614,5251
          Dollar Gain                                                                                  $255,273
          Percentage Gain                                                                                10.82%

 The table above illustrates the cash inflows and outflows of the Student Managed Fund since its inauguration
 in July of 1998. Each of the five sections in the cash flow chart is described as follows:

         Section I represents the initial investment of $500,000 by the Trinity University Board of Trustees.

         Section II shows the quarterly payments of $2,000 paid to Trinity University as a fee for maintaining
          operation of the fund, set forth by the Trinity University Administration. After the third payment, it was
          deemed unnecessary to continue such transactions, and thus the quarterly payments of $2,000 ceased.

         Section III depicts periodic injections, totaling $365,252 into the fund following the acceptance of the
          proposal to bring the total value of the Student Managed Fund to $1,000,000.

         Section IV represents a lump sum cash injection of $1,533,445 after a proposal by the Student Managed
          Fund to bring the fund’s total to $3,000,000 that was accepted by the Trinity University Board of

         Section V sums the cash flows, compares them to the current portfolio value at the end of Q3 for 2011,
          and calculates the percentage gain over the 13 years since the fund’s inception.

     The value includes $17,387.28 in cash
 SMF Investment Report Q2 &Q3 2011                                                                           Page 13
Transaction History – Purchases: Q2 & Q3 2011
April 6, 2011

o Caribou Coffee Inc. (COM)                        April 20, 2011
   Purchased 12,500 shares at $10.09 per
     share                                         o McCormick & Co Inc. (MKC)
                                                          Purchased 3,000 shares at $47.82
         Principal: $126,125
   Reasons for purchase:                                 Principal: $143,460
                                                          Reasons for purchase:
                 Second largest retail coffee
                    house in the nation                           Excellent return on equity
                 Strong brand equity                             Superior dividend growth
                 Large growth potential                          Strong international
April 6, 2011

   Purchased 3,000 shares at $47.33 per share     April 20, 2011
       Principal: $141,990                        o Nike Inc. (NKE)
   Reasons for purchase:                                   Purchased 1,800 shares at $79.33
         Strong growth and market share in                 Principal: $142,794
            Latin America                                   Reasons for purchase:
         Economies of scale and limited                           Overreaction to recent
            infrastructure development needs                         earnings report creates good
         Aggressive share repurchase                                buy opportunity
            program                                                Opportunities for growth in
April 11, 2011
                                                                   Strong management team
o VF Corp (VFC)
        Purchased 1,500 shares at $98.63 per
           share                                 Ticker    # of      Price    $ Paid     Date
        Principal: $147,945                              Shares
        Reasons for purchase:                   COM       12,500    $10.09   $126,125    4/6/11
                Leading Brands                  DTV         3,000    47.33    141,990    4/6/11
                Strong international
                                                 VFC         1,500    98.63    147,945   4/11/11
                 opportunities                   MKC         3,000    47.82    143,460   4/20/11
                Good cash flow as well as
                 steady dividend growth          NKE         1,800    79.33    142,794   4/20/11

SMF Investment Report Q2 &Q3 2011                                                          Page 14
Transaction History – Sales: Q2 & Q3 2011
April 20, 2011                                          May 20, 2011

o Sold 2600 shares of SPDR S@P 500 ETF                  o Sold 4700 shares of Xerox Corp. (XRX) at
  (SPY) at $131.85                                        $10.04 per share
         Realized Gain: $17,456                                 Realized Loss: ($5,380)

April 28, 2011                                          May 23, 2011

o Sold 1500 shares of NASDAQ OMX Group                  o Sold 2300 shares of Diana Shipping Inc. (DSX)
  Inc. (NDAQ) at $27.12 per share                         at $11.31 per share
          Realized Loss: ($21,411)                               Realized Loss: ($10,476)

May 19, 2011                                            May 23, 2011

o Sold 12,500 shares of Caribou Coffee Inc.             o Sold 800 shares of TEVA Pharmaceutical
  (COM) at $10.27 per share                               (TEVA) at $49.73 per share
         Realized Gain: $2,278                                  Realized Loss: ($9,181)

May 20, 2011                                            May 23, 2011

o Sold 900 shares of Research in Motion                 o Sold 300 shares of VISA Inc. (V) at $80.00 per
  (RIMM) at $43.73 per share                              share
         Realized Loss: ($15,498)                               Realized Loss: ($82)

May 20, 2011                                            May 27, 2011

o Sold 650 shares of Toyota Motor Corp.                 o Sold 900 shares of Stericycle Inc. (SRCL) at
  (SPON) at $81.36 per share                              $87.72 per share
         Realized Gain: $1,924                                  Realized Gain: $32,827

Company                         Ticker           Date          # of Shares         $Price Gain/Loss
SPDR S@P 500                                  April 20, 2011            2600
NASDAQ OMX Group Inc.                         April 28, 2011            1500
Caribou Coffee Inc.                           May 19, 2011             12500
Research in Motion                            May 20, 2011               900
Toyota Motor Corp.                            May 20, 2011               650
Xerox Corp.                                   May 20, 2011              4700
Diana Shipping Inc.                           May 23, 2011              2300
TEVA Pharmaceutical                           May 23, 2011               800
VISA Inc.                                                                300                          -
Stericycle Inc.                                                          900
Total Realized Loss                                                                            -
                    TOTAL REALIZED LOSS FROM SALES OF STOCK: $7,543

SMF Investment Report Q2 &Q3 2011                                                                   Page 15
Portfolio Performance: Q4 2008 - Q3 2011
                           SMF Performance vs. S&P 500
               Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3   Q4   Q1   Q2   Q3
              2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011

                                      SMF % Return     S&P 500 % Return

                                SMF Percentage Return vs. S&P 500
                        SMF% Return          S&P 500 % Return       Relative Performance
              Q4 2008        -20.05                  -21.95                 1.9
              Q1 2009        -2.09                   -11.01                 8.92
              Q2 2009        15.58                   15.93                 -0.35
              Q3 2009        13.36                   15.6                  -2.24
              Q4 2009         6.26                   6.04                   0.22
              Q1 2010         4.75                   5.39                  -0.64
              Q2 2010        -12.24                  -11.43                -0.57
              Q3 2010        10.64                   11.29                 -0.65
              Q4 2010        11.38                   10.76                  0.62
              Q1 2011         5.01                   5.96                  -0.95
              Q2 2011         0.31                   0.10                   0.21
              Q3 2011        -12.92                  -13.87                 0.95

SMF Investment Report Q2 &Q3 2011                                                          Page 16
Portfolio Performance Since Inception
                            SMF Performance vs. S&P 500








                 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

                                    SMF % Return     S&P 500 % Return

                                      SMF Percentage Return vs. S&P 500
                           SMF % Return       S&P 500 % Return          Relative Performance
                  1998*         5.64                 9.23                       -3.59
                  1999         24.01                19.40                        4.61
                  2000        -13.16               -11.69                       -1.47
                  2001         -8.25               -10.31                        2.06
                  2002        -12.82               -23.37                       10.55
                  2003         20.37                28.31                       -7.94
                  2004         15.50                10.88                        4.62
                  2005          4.70                 4.90                        -0.2
                  2006         14.65                15.43                       -0.78
                  2007         10.02                 5.69                        4.33
                  2008        -32.35               -37.01                        4.66
                  2009         36.31                26.46                        9.85
                  2010         13.29                15.06                       -1.77

      * SMF returns in 1998 only include Q3 and Q4 results.

SMF Investment Report Q2 &Q3 2011                                                              Page 17
Unrealized Gains and Losses: Q2 & Q3 2011
Company                     Ticker Shares    ($) Price 3/31/11 Value ($) 3/31/11 * 9/30/11 Price ($) 9/30/11 Value ($)     Gain/Loss ($) % Gain/Loss
Alcoa Inc                   AA         3,000               17.66 $           52,980             9.57 $             28,710 $       -24,270    -45.81%
Ball Corp                   BLL        2,000               35.85              71,700           31.02                62,040         -9,660       -13.47
Cerner Corp                 CERN       2,000              111.20             111,200           68.52               137,040         25,840        23.24
Corn Prods Intl Inc         CPO        1,400               51.82              72,548           39.24                54,936        -17,612       -24.28
Curtiss-Wright Corp         CW           500               35.14              17,570           28.83                14,415         -3,155       -17.96
DIRECTV Com **              DTV        3,000                NA                  NA             42.27               126,810        -15,180       -10.69
FactSet Research Sys Inc    FDS          800              104.73              83,784           88.97                71,176        -12,608       -15.05
Goldman Sachs Group Inc     GS           800              158.60             126,880           94.55                75,640        -51,240       -40.38
Google Inc                  GOOG         200              586.76             117,352          515.04               103,008        -14,344       -12.22
McCormick & Co Inc **       MKC        3,000                NA                  NA             46.16               138,480         -4,980        -3.47
Mosaic Co                   MOS        1,000               78.75              78,750           48.97                48,970        -29,780       -37.82
Nike Inc **                 NKE        1,800                NA                  NA             85.51               153,918         11,124         7.79
Occidental Petroleum Corp   OXY        1,400              104.49             146,286           71.50               100,100        -46,186       -31.57
Oracle Corp                 ORCL       2,000               33.43              66,866           28.74                57,480         -9,386       -14.04
Quest Diagnostic Inc        DGX          600               57.72              34,632           49.36                29,616         -5,016       -14.48
Rio Tinto                   RIO          900               71.12              64,008           44.08                39,672        -24,336       -38.02
VF Corp **                  VFC        1,500                NA                  NA            121.52               182,280         34,335        23.21
Wells Fargo & Co            WFC          400               88.67              12,684           24.12                 9,648         -3,036       -23.94
Yum Brands Inc              YUM        1,100               51.38              56,518           49.39                54,329         -2,189        -3.87
S&P Depositary Receipts     SPY        9,800              132.59           1,113,756          113.15             1,108,870         -4,886        -0.44
Cash                                                        NA               404,417             NA                 17,387            NA          NA

Totals Q2 & Q3 *                                                 $           3,208,120                     $     2,614,525 $       -206,565          -6.44%

* The total portfolio value on 3/31/2011 accounts for the later acquisitions of DTV, MKC, NKE, and VFC, giving the portfolio a higher value at 3/31/11.
**Later acquisitions are shown in the table below:
Company                             Ticker           Acquisition Price ($)               Shares Acquired        Amount Paid       Acquisition Date
DIRECTV Com                                                                                3,000                                  April 6, 2011
McCormick & Co Inc.                                                                        3,000                                  April 20, 2011
Nike                                                                                       1,800                                  April 20, 2011
VF Corp                                                                                    1,500                                  April 11, 2011

SMF Investment Report Q2 &Q3 2011                                                                                                                    Page 18
SMF vs. S&P Sector Holdings*: 9/30/2011

                             % of Portfolio                                       Sector                         % of Port.
                                                        Technology                Consumer Discretionary              24.37%
Financials,                                                8.86%                  Consumer Staples                    12.36%
  9.16%                                                               Materials, Energy                               8.92%
                                                                                 Financials                           9.16%
                                                                                  Health Care                         11.17%
                                        Consumer                                  Industrials                         4.88%
                                       Discretionary,                 Utilites,
 Energy,                                                              1.53%       Information Technology              17.30%
 8.92%,                                                                           Materials                           8.39%
                                                                                  Telecom. Services                   2.79%
                                                                                  Utilities                           1.53%
                                                            Telecom.              Cash                                0.67%
Staples, 12.36%
                                                         Services, 1.23%

                                                               % of S&P Holdings
Sector                       %of S&P      Financials Health Care
                                                       11.3%                  10.2%
Consumer Discretionary         10.8%        13.9%
Consumer Staples               11.7%
Energy                         12.0%                                                                       19.9%
Financials                     13.9%
Health Care                    11.3%
Industrials                    10.2%            Energy 12.0%                                                   Materials
Information Technology         19.9%
Materials                       3.6%                                                                         Telecom.
Telecommunication Services      2.9%                                                                       Services 2.9%
Utilities                       3.6%                                                                       Utilities 3.6%
                                                            Consumer                      Discretiona
                                                             Staples                        10.8%

* The SMF portfolio has 42.41% invested in SPYDERs; the portfolio pie chart accounts for the SPYDER’s
weighted sector holdings in the S&P 500.

SMF Investment Report Q2 &Q3 2011                                                                               Page 19
SMF vs. S&P Sector Holdings Variation
Sector                               % of Portfolio        % of S&P Holdings           Variation
Consumer Discretionary                  24.37                    10.80                     13.57
Consumer Staples                         0.33                    11.70                    -11.37
Energy                                   8.92                    12.00                     -3.08
Financials                               9.16                    13.90                     -4.74
Health Care                             11.17                    11.30                     -0.13
Industrials                              4.88                    10.20                     -5.32
Information Technology                  17.30                    19.90                     -2.60
Materials                                8.39                     3.60                      4.79
Telecommunication Services               1.23                     2.90                     -1.67
Utilities                                1.53                     3.60                     -2.07


                                                                            % of Portfolio
                                                                            % of S&P Holdings

                                                                            % Difference
                                                                         Telecommunication Services
                                                                         Information Technology
                                                                         Health Care
                                                                         Consumer Staples
                                                                         Consumer Discretionary

     -15.00     -10.00       -5.00      0.00      5.00   10.00   15.00

SMF Investment Report Q2 &Q3 2011                                                               Page 20
Portfolio Allocation: 9/30/2011

Company                       Ticker           Sector                           Industry                  Value ($)   % of Portfolio
DIRECTV                        DTV     Consumer Discretionary               Cable & Satellite            $126,810          4.85%
Nike Inc.                      NKE     Consumer Discretionary                   Footwear                   153,918        5.89
VF Corp.                       VFC     Consumer Discretionary   Apparel, Accessories & Luxury Goods        182,280        6.97
Yum Brands Inc.               YUM      Consumer Discretionary                  Restaurants                  54,329        2.08
Corn Prods Intl Inc.           CPO        Consumer Staples               Agricultural Products              54,936        2.10
McCormick & Co Inc.           MKC         Consumer Staples             Packaged Foods & Meats              138,480        5.30
Occidental Petroleum Corp.     OXY             Energy                     Integrated Oil & Gas             100,100        3.83
Goldman Sachs Group Inc.        GS           Financials           Investment Banking & Brokerage            75,260        2.88
Wells Fargo & Co.              WFC           Financials                     Diversified Banks                9,648        0.37
Cerner Corp.                  CERN           Health Care                Health Care Technology             137,040        5.24
Quest Diagnostic Inc.          DGX           Health Care                  Health Care Services              29,616        1.13
Curtiss-Wright Corp.           CW            Industrials                 Aerospace & Defense                14,415        0.55
FactSet Research Sys Inc.      FDS     Information Technology            Application Software               71,176        2.72
Google Inc.                   GOOG     Information Technology        Internet Software & Services          103,008        3.94
Oracle Corp.                  ORCL     Information Technology               Systems Software                57,480        2.20
Alcoa Inc.                      AA            Materials                        Aluminum                     28,710        1.10
Ball Corp.                     BLL            Materials                Metal & Glass Containers             62,040        2.37
Mosaic Co.                     MOS            Materials          Fertilizers & Agricultural Chemicals       48,970        1.87
Rio Tinto                      RIO            Materials              Diversified Metals & Mining            39,672        1.52
S&P Depositary Receipts        SPY                                                                       1,108,870       42.41

Cash                                                                                                         17,387        0.67
Total Assets                                                                                            $ 2,614,525      100.00%

SMF Investment Report Q2 &Q3 2011                                                                                                      Page 21
Portfolio Allocation by Market Cap*: 9/30/2011
   Company                      Ticke r   Type **      Sector                 Value ($)        % of Portfolio
   Curtiss-Wright Corp          CW        Small Cap    Industrials             $        14,415         0.55%
   Ball Corp                    BLL       Middle Cap   Materials                        62,040           2.37
   Corn Prods Intl Inc          CPO       Middle Cap   Consumer Staples                 54,936           2.10
   FactSet Research Sys Inc     FDS       Middle Cap   Information Technology           71,176           2.72
   McCormick & Co Inc           MKC       Middle Cap   Consumer Staples                138,480           5.30
   Quest Diagnostic Inc         DGX       Middle Cap   Health Care                      29,616           1.13
   Alcoa Inc                    AA        Large Cap    Materials                        28,710           1.10
   Cerner Corp                  CERN      Large Cap    Health Care                     137,040           5.24
   DIRECTV Com                  DTV       Large Cap    Consumer Discretionary          126,810           4.85
   Goldman Sachs Group Inc      GS        Large Cap    Financials                       75,260           2.88
   Mosaic Co                    MOS       Large Cap    Materials                        48,970           1.87
   Nike Inc                     NKE       Large Cap    Consumer Discretionary          153,918           5.89
   Occidental Petroleum Corp    OXY       Large Cap    Energy                          100,100           3.83
   VF Corp                      VFC       Large Cap    Consumer Discretionary          182,280           6.97
   Yum Brands Inc               YUM       Large Cap    Consumer Discretionary           54,329           2.08
   S&P Depositary Receipts      SPY       Large Cap    N/A                           1,108,870          42.41
   Google Inc                   GOOG      Mega Cap     Information Technology          103,008           3.94
   Oracle Corp                  ORCL      Mega Cap     Information Technology           57,480           2.20
   Rio Tinto                    RIO       Mega Cap     Materials                        39,672           1.52
   Wells Fargo & Co             WFC       Mega Cap     Financials                        9,648           0.37
   Cash                         N/A       N/A          N/A                              17,387           0.67
   Total Assests                                                               $   2,614,525          100%

                       Portfolio by Market Cap                                      Market Cap          % of Portf.
           Small Cap      Middle Cap      Large Cap      Mega Cap       Cash        Small Cap                   0.55%
                                                                                    Middle Cap                 13.62%
                                                                                    Large Cap                  77.12%
                                                                                    Mega Cap                    8.03%
                                                                                    Cash                        0.67%

                                           8.03%                                    **Type             Definition
                                                                                    Small Cap            $ Under 2 Bil
                                                                                    Middle Cap            $ 2 to 10 Bil
                   0.55%                                                            Large Cap           $10 to 100 Bil
                                 0.67%                                              Mega Cap            $Over 100 Bil

* Market Capitalization – Reflects the size of the company through the market dollar value of its total outstanding

SMF Investment Report Q2 &Q3 2011                                                                               Page 22
Risk Analysis
    Company                                         Ticker         Market Value   % of Portfolio                            Beta2
    Alcoa                                           AA                   $ 28,710          1.10%                            1.98
    Ball Corp.                                      BLL                    62,040           2.37                            0.68
    Cerner Corp.                                    CERN                  137,040           5.24                            0.90
    Corn Products International Inc.                CPO                    54,936           2.10                            1.17
    Curtiss-Wright Corp.                            CW                     14,415           0.55                            1.18
    Quest Diagnostic Inc.                           DGX                    29,616           1.13                            0.59
    DIRECTV Com.                                    DTV                   126,810           4.85                            0.88
    FactSet Research Systems Inc.                   FDS                    71,176           2.72                            1.22
    Google                                          GOOG                  103,008           3.94                            1.01
    Goldman Sachs Group Inc.                        GS                     75,640           2.89                            1.32
    McCormick & Co Inc.                             MKC                   138,480           5.30                            0.46
    Mosaic Co.                                      MOS                    48,970           1.87                            1.35
    Nike Inc.                                       NKE                   153,918           5.89                            0.92
    Oracle Corp.                                    ORCL                   57,480           2.20                            1.05
    Occidental Petroleum Corp.                      OXY                   100,100           3.83                            1.07
    Rio Tinto                                       RIO                    39,672           1.52                            1.63
    VF Corp.                                        VFC                   182,280           6.97                            0.96
    Wells Fargo & Co.                               WFC                     9,648           0.37                            1.47
    Yum Brands Inc.                                 YUM                    54,329           2.08                            0.94
    S&P Depositary Receipts                         SPY                 1,108,870          42.41                            1.00
    Cash                                                                   17,387           0.67                            0.00
    Totals                                                            $ 26,14,525        100.00%
    Market Weighted Beta                                                                                                    0.986

       Beta is a measure of the sensitivity of a security’s returns in relation to the stock market as a whole,
        with the market beta by definition equaling 1.00.

       The market weighted beta of the SMF portfolio is 0.986, indicating that SMF portfolio is slightly less
        volatile than the market as a whole.

    The beta was obtained by averaging the beta given by Google Finance, Yahoo Finance, Value line, and Standard & Poor’s
SMF Investment Report Q2 &Q3 2011                                                                                           Page 23
SMF Investment Policy
I. Objectives
        To earn a rate of return, calculated on the entirety of the fund, that is superior to the market benchmark,
          defined as the S&P 500 Index, in each one-year, three-year, and five-year period.

         To preserve and enhance the monetary value of those assets allocated by the trustees of Trinity
          University for future classes to manage.

         To Manage the Fund in the context of portfolio management rather than as a collection of individual

II. Securities
         The portfolio shall be invested exclusively in U.S. listed equity securities, with the exception of a
          fractional amount of cash invested in money market mutual fund.

         The portfolio shall be diversified with respect to exposure to different economic sectors, industry
          segments, and individual stocks. Managers will be encouraged not to diversify beyond their own
          areas of expertise.

         The portfolio will not be governed by specific diversification guidelines; however, the majority of
          the portfolio will be invested in well-established, large and mid-capitalization corporations.

         Puts, calls, and future contracts, as well as short selling, and margin buying will not be allowed.

         Tax-exempt securities will not be acceptable investments, because the fund is not subject to taxation.

         Decisions concerning individual security selection, size and number of industries or holdings will be
          left to managers’ discretion subject to normal standards of fiduciary prudence.

         SMF will consider the relationship between governments and potential investments. SMF will screen
          investments in order to avoid investment relationships with governments that engage in immoral
          practices, such as human rights violations or genocide.

         Managers shall maintain a long-term perspective when selecting securities to be consistent with the
          long-term investment horizon of the Trinity University endowment fund.

         At the time of purchase, no more than five percent of the fair market value of the fund shall be
          invested in any one security. The fund may continue to hold securities that appreciate above this
          percentage; however, once a security comprises more than fifteen percent of the fair market value of
          the fund, the equity position will be reevaluated.

         Security sell recommendations shall be based on a fundamental analysis that suggests that the
          continued holdings of the security presents unacceptable risk, that anticipated returns have been
          achieved, that a continued position in the security is no longer in conformance with overall portfolio
          risk and return objectives, or that liquidation of the position presents a unique profit-taking

SMF Investment Report Q2 &Q3 2011                                                                           Page 24
SMF Code of Ethics - Continued
III. Reports and Responsibilities
        New investment consistent with the portfolio strategy will be identified, analyzed, discussed and
         voted upon by the student managers.

        Each semester managers will be broken into teams. Each team will be required to prepare and
         present two security reports per semester.

        Security reports shall consist of an oral proposal and written summary of key decision points
         supported by appropriate research.

        A copy of the written report will be handed out one or two class sessions before the oral
         presentation. Managers shall digest the content of the report and obtain any relevant information to
         contribute to the oral presentation in order for the managers to make an informed investment

        Upon completion of the presentation, teams shall make an objective purchase recommendation
         consisting of the following: number of shares and target price.

        If upon any reasonable circumstances a team finds their suggested stock unfit for purchase before
         the presentation, the team may make a “Do Not Buy” recommendation after the oral report.

        Unless timing is urgent, a vote to add a new security to the portfolio will not be made on the same
         day as the presentation to ensure that the vote reflects the quality of the stock rather than the quality
         of the presentation.

        A select group of mangers will make a written quarterly formal report to the Trinity University
         Board of Trustees in November, February, and May of each year, as well as an oral report in

        During summer and winter breaks, management of the fund will be the responsibility of a team of
         managers and/or the professor.

SMF Investment Report Q2 &Q3 2011                                                                         Page 25
SMF Investment Policy- Continued
IV. Voting
        The managers may vote on a “Do NOT Buy” recommendation: 1) if any of the managers makes a
         suggestion to vote AND 2) if at least one other manager subsequently seconds the proposal.

         If the voting suggestion for a “Do Not Buy” recommendation passes, the number of shares, the
         target price, as well as a brief list of reasons to buy shall be presented by the joint efforts of the
         proposing parties on the voting day.

        Any investment decision (buy or sell) will be decided by secret ballot with the managers and
         professor each receiving one vote.

        All investment decisions must be approved by a two-thirds majority of a quorum of class members
         present during a class session. A quorum is seventy-five percent of the class members.

        The professor will retain veto power over all investment decisions; this veto is to be used sparingly.

        Any member may cast a vote of indifference; the number of votes of abstention will reduce the
         number of votes taken into account.

        Absentee voting will be allowed in those circumstances approved by the professor and managers.

        Once the managers reach an investment decision, the professor will make the necessary
         arrangements to execute the transaction.

          Class members may, at any time, propose amendment to this investment policy.

          Last Revision: November 1, 2011

SMF Investment Report Q2 &Q3 2011                                                                           Page 26
SMF Code of Ethics

I. Vision
      The primary vision of the Trinity University Student Managed Fund will be to provide students with a
       comprehensive learning experience to develop and practice portfolio management styles and valuation
       techniques. The course will emphasize a thorough analysis of securities based on fundamentals and
       prudent management of the equity portfolio.

II. Managers of the fund shall:
      Act with integrity, competence, dignity, and ethics when dealing with Trinity University, the public,
       and fellow members.

      Practice and encourage others to practice in an ethical manner that will reflect favorably on other
       members and the group.

      Strive to maintain and improve their competence and the competence of others in the group.

      Use reasonable care and exercise independent and unbiased judgment.

      Make every attempt to remain well informed and up to date on relevant information.

      Hold themselves and others accountable for maximum efforts when completing assignments.

III. Standards of Conduct
      Knowledge of Policy
          o Members shall maintain knowledge of and comply with the Investment Policy as established by
             this fund.

      Ethical Conduct
          o Members shall not engage in any conduct involving dishonesty, fraud, deceit, or
               misrepresentation or commit any act that reflects adversely on their honesty, trustworthiness, or

      Prohibition Against Plagiarism
          o Members shall not copy, or use in substantially the same form as the original, material prepared
              by another without acknowledging and identifying the name of the author, publisher, or source
              of such material.

            o   Members may use without acknowledgement factual information published by recognized
                financial and statistical reporting services or similar sources.

SMF Investment Report Q2 &Q3 2011                                                                       Page 27
SMF Code of Ethics - Continued
III. Standards of Conduct - Continued
      Reasonable Basis and Representation
          o Members shall exercise diligence and thoroughness in making investment recommendations or
             in taking investment actions.

          o   Members shall have a reasonable and adequate basis, supported by appropriate research and
              investigation, for such recommendations or actions.

          o   Members shall make reasonable and diligent efforts to avoid any material misrepresentation in
              any security report or investment recommendation.

      Security Reports
          o Members shall use reasonable judgment regarding the inclusion or exclusion of relevant factors
              in security reports.

          o   Members shall distinguish between facts and opinions in security reports.

      Independence and Objectivity
          o Members shall use reasonable care and judgment to achieve and maintain independence and
              objectivity in making investment recommendations.

      Fiduciary Duties
          o Members must act for the benefit of Trinity University and place Trinity University’s interest
              before their own.

        Abiding by a code of ethics will be essential to the success of this endeavor. The professor will be
         the primary administrator of the fund through guidance and supervision of student activities.

        Since the Student Managed Fund will be controlled in a class setting, class members will be
         graded by the professor and scrutinized by their peers.

        It will be important to follow this Code of Ethics as closely as possible to ensure objective
         analysis and maximum learning.

SMF Investment Report Q2 &Q3 2011                                                                        Page 28
The Bottom Line

SMF Investment Report Q2 &Q3 2011   Page 29
The Bottom Line - Continued

SMF Investment Report Q2 &Q3 2011   Page 30

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