Monday, November 1, 2010

October 2010 AIM Funds' Investment Performance

Marquette's AIM students manage three separate portfolios which are part of the University’s endowment. The three funds, which were each funded with $500,000, have been managed by the students since 2005. They are named:

     • AIM Equity Fund (benchmark: Russell 2000 Index)
     • AIM Fixed Income Fund (benchmark: Barclays Aggregate Bond Index)
     • AIM International Equity Fund (benchmark: S&P ADR Index)

The following tables contain the investment performance results of the three funds as of the end of October 2010. Each AIM class is responsible for the portfolios for a one-year period beginning on April 1. The performance of the funds is monitored by each AIM class and for the entire holding period (since their inception). Quarterly and annual reports are prepared and presented to the CIO of Marquette University’s endowment. 

AIM Equity Fund

As the graphs below demonstrate, the AIM Equity Fund is sector neutral with a slight growth bias. The average market capitalization of the AIM Equity Fund is $727M, while the Russell 2000 has a mean market capitalization of $857M. The AIM Equity Fund's average P/E ratio is 16.3x versus a 15.8x for the R2K. The other relative valuation metrics are nearly identical for the AIM Equity Fund and the benchmark.

(Note: To expand the view of the graphs below, click on the individual graph).

AIM International Equity Fund

The graphs shown below indicate that the AIM International Equity Fund is nearly sector neutral with a slight bias toward the manufacturing sector. The AIM International Equity Fund has a slightly lower market capitalization and has more of a core bias than the S&P ADR Index. The AIM Fund has a larger emerging market tilt than the benchmark and is under-represented with European holdings (especially United Kingdom stocks). The AIM International Equity Fund has an average P/E ratio of 15.0x versus 12.5x for the S&P ADR Index. Other valuation metrics indicate higher average relative values for the holdings in the AIM Fund versus the benchmark. 


AIM Fixed Income Fund

The graphs shown below indicate that the AIM Fixed Income Fund is duration neutral (4.10 vs. 4.05 for the Barclays Aggregate Index). The Fund is over-weighted in credit and under-weighted in U.S. Treasuries.

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