FMA Magazine 2021 - 2023
FMA Bi-Annual Magazine. Highlighting programs, training, and engagements of Auburn University Financial Management Association Honors Society and Auburn Student Investment Fund.
FMA Bi-Annual Magazine. Highlighting programs, training, and engagements of Auburn University Financial Management Association Honors Society and Auburn Student Investment Fund.
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<strong>2021</strong> Investment Rationale<br />
<strong>2021</strong> marked the completion of a shift into an<br />
equities-only portfolio, which coincided with an<br />
exceptional year for the equities market as the<br />
economy continued to recover from the setbacks of<br />
COVID. This combination was the driving force<br />
behind ASIF's best performance since inception. Our<br />
portfolio reached a peak value of $618,593 as of<br />
December 31, <strong>2021</strong>.<br />
<strong>2021</strong> was also a record year in donations. We<br />
received a total of $72,737, which is the most<br />
received since the original seed capital of $250,000.<br />
Because of the sudden influx of donations, we made<br />
several transactions in May as we sought to deploy<br />
the excess cash and allocate appropriately among<br />
our different investment sectors. We took this<br />
opportunity to invest in two new businesses - BJ's<br />
Wholesale and Salesforce.<br />
BJ's Wholesale significantly outperformed analyst<br />
expectations since the time of our investment. A mix<br />
of macro factors, the company's unique positioning<br />
and their initiatives drove share gains in <strong>2021</strong>. Looking<br />
forward, we believe the company is well-positioned<br />
in the event of a downturn because of the growth<br />
and the stickiness of its membership income.<br />
Salesforce benefitted from an increased enterprise IT<br />
spend that was prioritized toward digital<br />
transformation in <strong>2021</strong>. Its share price began to move<br />
downward at the end of the year amidst the<br />
widespread tech sell-off and partly due to the<br />
company's acquisition of Slack Technologies.<br />
<strong>2021</strong> Investment Decisions<br />
January:<br />
Sold Alibaba<br />
March:<br />
Sold Gilead Science<br />
May:<br />
Increased position in Estee<br />
Lauder<br />
Sold Lockheed Martin<br />
Increased position in NVIDIA<br />
Increased position in Alexandria<br />
Real Estate<br />
Increased position in Waste<br />
Management<br />
Bought BJ's Wholesale Club<br />
Bought Salesforce<br />
Increased position in Medical<br />
Properties Trust<br />
Increased position in Mastercard<br />
Sold IPG Photonics<br />
Sold Alphabet<br />
Sold Truist<br />
Sold Boeing<br />
Increased position in Johnson &<br />
Johnson<br />
Increased position in Microsoft<br />
Sold Tyson Foods<br />
October:<br />
Sold Illinois Tool Works<br />
<strong>2021</strong> Performance Summary <strong>FMA</strong> <strong>2021</strong>-<strong>2023</strong> MAGAZINE 71
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