We follow a prudent approach to investing to ensure the sustainability of the fund. Depending on the amount of capital raised, we diversify by having a number of portfolios – each of these allocates money to selected stocks using our stylized investment strategies, paying attention to the socially responsible investing commitment. At one time, no portfolio exceeds 35% of the fund’s total capital and no asset accounts for more than 35% of the portfolio’s money. We aim for monthly rebalancing but due to transaction fee constraint, we practically do it quarterly. We will inject money to the fund from time to time following our calls for donations and capital raising, but we will not withdraw money from the fund. All returns and losses stay with the fund.
Each portfolio has its own investment strategy. Overall, our investment strategies aim to achieve optimal return from cash dividends and capital appreciation by investing in healthy companies with strong cash-flow generation, competitive advantages, conservative balance sheet, and at significant discount to the estimated intrinsic value. The investee companies must be listed on the London Stock Exchange with trading prices much lower than their fundamental valuations. They should also have policy and capability to pay cash dividends. The fundamental valuations are determined by using techniques taught in our programmes and modules in accounting, banking and finance at the LIBS.
The purpose of this exciting venture is to give students the opportunity to gain valuable experience in working for the fund, for which we welcome sponsorship and donations. Your small contribution today will convert to important educational opportunities for students. For every £300 raised allows us to reasonably invest in shares of one company, giving up to four of our students the opportunity to be involved as investment managers and analyst. Click here to donate mentioning the Lincoln Student Managed Investment Fund (LSMIF) as the beneficiary or email us for more information on sponsorship opportunities: LSMIF@lincoln.ac.uk