|Welcome to the University of Alberta Faculty Investment Club.|
Shortly after the Faculty Club opened its doors in the Fall
of 1964 a group of members decided to meet regularly to learn about
investing in the equities market. The first meeting was held in
April 1965. While the membership has changed over the years the
group has met regularly on the second Tuesday of the month (except in
July and August) for the past fifty years! Two of the original 21
members are still active. Market cycles have rolled by and the
portfolio has changed with the times. The original group paid a
regular sum ($10 per month) and negotiated sales with a broker who
attended each meeting. Changes in the Income Tax Act soon induced
a conversion to share units which a member can buy, or sell, only in
January and July during the year. Using a broker was costing the group 4-5
% a year in fees, and yet the choice of stocks arose from the membership's
expertise in such areas as geology, mining, petroleum engineering,
law etc. Consequently when internet trading came available we went
on-line and our brokerage expenses are now less than 1%.
Although we initially restricted ourselves to trading common equities we have now increased our scope to include Trust Units, and covered calls. Like most groups we were caught by the techno-down turn earlier this decade, but our recovery has been fast and the last two years has seen the value of a unit grow by 22 and 24% annually. Most members have private accounts and are skilled traders.
Any member of the Faculty Club may join, and we encourage those who are interested to attend a couple of meetings before committing. All members are required to own at least twenty units, but no one can hold more than 15% of the total. There are two modes by which trading decisions are made. The first, and more common, is at a monthly meeting after a report and discussion by the membership. The second is by the "Hot-Deal Committee" which consists of four members of the executive who are empowered to act on behalf of the larger group.
Typically, the club has about 20 members. For more insights please speak to one of the following principal officers:
Curtis Strobeck, Biological Sciences