You can download the program’s prospectus here: Auburn University Global Asset Management Program Prospectus (Oct. 20, 2016)
Program Objective
The Auburn University Global Asset Management Program is a subsidiary of the Auburn University Economics Club. The goal of this program is to bring together students with an interest in the global economy with emphasis on how it shapes financial markets.
Fund Overview
Members of this program meet biweekly to discuss the current economic outlook and make investment decisions for simulated clientele in order to establish a portfolio performance record.
Investment Fund Structure
Our fund is designed in three divisions: U.S. Equities, Commodities, and Emerging Markets. Our U.S. Equity division focuses on managing the program’s exposure to the United States equity market as a whole as well as individual U.S. companies’ securities. The Commodities division focuses on managing the program’s exposure to the commodities market as well as using this information to better influence decisions made by the other divisions. The Emerging Markets division manages the program’s exposure to foreign emerging markets as well as informing the other divisions on changing global market environments and other useful information. Each division is responsible for the communication of valuable financial information that can better aide the performance of the related divisions.
Investment Strategies
The fund uses a three pronged approach to analyze possible investments. (1) The first step involves a macroeconomic overview of current economic conditions as well as an understanding of monetary and fiscal policy, political uncertainty, business and debt cycles, and ever changing future market environments. This also includes anticipating economic calendar events and analyzing indicator data. By beginning our investment process with a broad overview, we are able to reduce systematic risk and develop circumstantial evidence for market positioning.
(2) The second step requires an understanding of an asset’s fundamentals. To complete this process, our members interpret financial data using profitability, solvency, and liquidity analysis for US equities. For commodities we examine the supply and demand side of any particular commodity, and couple this information with spot and future prices to determine the portfolio weight in assets in commodities and commodity related equities. With emerging markets, we will research data pertaining to population change, fiscal policy reform, labor market stability, and future projected growth. However, investing in emerging market includes inherent risk associated with foreign currency, limited liquidity, various governmental regulation, and political uncertainty. (3) The third step of the investment process involves entry and exit strategy utilizing computer software to determine an asset’s price moving average convergence/divergence, relative strength index, linear regression reversal from the mean, and money flow across various time periods. Using these three phases we can diversify our holdings and avert selection risk.
Account Information
Each simulated client account will begin with a net liquid value of $200,000, and maintain an adequate base position in broad market exchange traded funds. Using the performance of the underlying assets within the chosen derivative, we will then take on more risk in a predetermined structure, allocating smaller percentages of the client’s portfolio to higher risk positions.
Auburn University Global Asset Management Program 