Pacific Lutheran University
PAE-T2-7: Student-Managed SRI Fund

In 1982, Mary Lund Davis endowed Pacific Lutheran University the sum of $25,000 for the establishment of The Business School Student Investment Fund, now named the Mary Lund Davis Student Investment Fund (SIF). The primary purpose of this endowment is to provide a learning experience for students in investment portfolio management. Currently, the SIF is valued at $92,000. Each year a student board of directors is elected to manage the fund. Students who are interested in investing, but do not desire a board member position, are also welcome to participate in weekly SIF meetings. For guidance, a trust document was created by Mary Lund Davis to provide direction as to how the money should be handled by the student investment club. Basically, the trust document emphasizes the importance of allowing the students the opportunities to make all financial and managerial decisions regarding how the money, and the operations of the club itself, are managed. The Fund, as stipulated in the trust document, is allowed a withdrawal capped at a maximum distribution of 4 percent of the average quarterly market value of the Fund for the previous two years. This maximum distribution shall include amounts to be used for expenses of operating the Fund and for designated projects. Past Student Investment Fund boards have used the funds to pay for a percentage of each member’s trip costs to Chicago, Illinois (Chicago Board of Trade), and New York (New York Stock Exchange). (It is expected that fund money spent for traveling be used toward an “educational” experience). Other years, board members decided it was best to leave as much money as possible invested, and used less than one percent of the fund merely to pay for the printing of their annual reports and year-end banquet.

Information collected from 2010 submission