North Dakota State University

NDSU's Student Managed Investment Fund (SMIF) was formed during the 2006-07 academic year, at the suggestion of Dean Ronald Johnson, with two complementary objectives.  The first objective was to provide a unique educational experience for advanced business students by providing an opportunity to actively manage a significant portfolio of “real money.”  The second objective was to manage a portfolio in such as way as to provide competitive financial returns with appropriate levels of risk – i.e., to provide long-term performance equal to, or better than, professional portfolio managers. 

The group’s activities were ultimately made possible by a generous offer from Dean Tom Riley which allowed the Bison Fund to manage an endowment portfolio of approximately $108,000 for the benefit of the Institute of Regional Studies.  The student founders of SMIF then proceeded to develop a roadmap for managing the endowment.  This process involves understanding the clients’ objectives and expectations with regard to investment risk return.  With this information in hand, and after considerable planning, SMIF portfolio managers developed a professional Investment Policy Statement describing how the portfolio would be invested – including guides for asset allocation (i.e., allocations to stocks, bond and cash) and security selection (i.e., which stocks to purchase).  The Fund was initially deployed on March 14, 2007, with the purchase of approximately 25 individual stock issues and a bond mutual fund.

Students interested in participating with NDSU's student managed investment fund should complete or be enrolled in FIN 410 (previously BUSN 441) Investment Analysis and Management, preferably in their junior year. Students may contact any of the Bison Fund officers for information on the organization. 

 Reports and Statements