Archway Investment Fund

The Equity Fund’s objective is to make superior quality long-term value investments, using both individual stocks and sector exchange- traded funds (ETFs), while considering Environmental, Social, and Governance (ESG) factors. The overall benchmark used in the Fund’s performance evaluation is the State Street Standard and Poor's Depository Receipts (SPDR) S&P500 Exchange Traded Fund (SPY). Benchmarks used for individual sectors are the corresponding sector SPDR.

Each sector is initially weighted in the portfolio based on their weighting in the SPY and are then adjusted to reflect current market conditions. Investment opportunities are researched by individual sector teams and then presented to all Security Analysts and Portfolio Managers in the Fund. Security Analysts and Portfolio Managers then vote on each investment opportunity, with a majority of votes needed to undertake the investment.

While the Fund allows for the purchase of foreign equities, the Fund remains heavily weighted in domestic assets. At times, the Fund will use options as a method to control risk. Option use is limited to covered call and protective put strategies. Options are used only to control risk and the underlying security must be held in the Fund.

The student-managed Fixed Income Fund provides a hands-on learning experience in which students seek to achieve risk-adjusted returns that equal or exceed the returns on the Fund’s benchmark index. Students involved in the program work in conjunction with Professor Kevin Maloney to maintain a well-diversified portfolio consisting of investment grade fixed income investments, initially valued at $500,000.

The Fund seeks returns, considering both income and price appreciation, in excess of its Benchmark, the ETF with the ticker symbol AGG, while maintaining a volatility less than 120% of that of its Benchmark. This ETF tracks the Bloomberg Barclays Aggregate Index. That index consists primarily of U.S. Government Treasury and Agency notes and bonds, investment grade corporate bonds issued by U.S. corporations, and Agency Mortgage-Backed Securities. Those three sectors account for approximately 94% of the asset value in the index. Commercial Mortgage Backed Securities, Asset Backed Securities, taxable municipal securities, and US dollar denominated issues of other sovereign and supranational issuers account for the remainder of the assets in that index. The precise characteristics and composition of this index varies through time. The Benchmark was chosen due to its wide diversification, and its common usage as a benchmark for both active and fixed income portfolios. It is expected that the tracking error of the portfolio versus this benchmark, defined as the annualized standard deviation of excess returns, will be kept below 2%.