FAQ
1. When did the portfolios start up?
The first portfolio started investing in October 2002. The second portfolio started investing in December 2003.
2. What happened to the old Sigma Investments club?
Sigma has a long history. In cooperation with study association Future it has grown over the years. Due to legal limitations (Regeling van 9 oktober 1990 tot uitvoering van artikel 14 van de wet toezicht beleggingsinstellingen, staatscourant 198 1 & Toelichting) the structure of Sigma had to change. A complete makeover has been combined with the structural changes. The old Sigma portfolio (worth some 30,000 Euro) has been liquidated since June 2001, and paid out to the members. This is due to the new Dutch central bank's ruling that investment clubs in the Netherlands may not have more than 25 members. Alumni Sigma Members are welcome to contact us or join any of our activities.
3. How does the new Sigma Investments differ from the old Sigma?
Unlike the old Sigma which had more than 100 members and each new member investing about 100 guilders, the new Sigma Investments has a maximum of 25 members per portfolio, with each member initially investing no less than 500 Euro.
4. How much money do I have to invest? Are there any other fees (like membership fee, etc.)?
To join Sigma Investments, you have to invest at least 500 Euro. Once this amount is paid, you receive a "note of remittance" as a proof of payment. All your money will be put into your portfolio when you join. Your share in the portfolio will be calculated as your contribution divided by the total portfolio value (including your contribution) at the time you join. The shares of other members when you are joining will also change accordingly, so that at all time the sum of all the members' shares will be 1. From the academic year 2004/2005 on you have to pay a membership fee of 15 Euro. With becoming a member of Sigma Investments you automatically are a member of FS FOCUS, the financial Study Association of the University. The new structure of the EFM requires each student, who is a member of one of its associations to pay this membership fee. The activity Sigma itself and the social activities and some other grants from Sigma Investments and FS FOCUS more than make up for this fee.
5. What do I have to do if I want quit? How much do I get back? Can I withdraw partially?
When a member wants to quit, he/she will be paid out by an amount of his/her current share multiplied by the current portfolio value. In case you want to quit, which you are always free to do, you will be paid out by your current Sigma share multiplied by the current value of the portfolio. Note that, whenever a new member joins or a current member withdraws, your Sigma share will change. You will be notified about this promptly. Partial withdraw is possible to the extent that your remaining contribution is still not less 500 Euro. However, extra investment is always welcome. Once a member quits and hence withdraws the money, rejoining is not possible.
6. Can I also become more active in Sigma Investments or FS FOCUS?
If you are highly motivated to organize one of the activities with some top investment companies, or are interested in managing part of Sigma Investments and one of our activities, we would like to invite you to contact us about this. We will be glad to meet you and talk about the opportunities which are available to you.
7. Do I have more voting power if I have a bigger share in Sigma portfolio?
No. Everybody has equally one vote.
8. What does a regular Sigma meeting look like?
The procedure of approving an investment decision is as follows: There is a Sigma meeting every Tuesday evening in the Economics Faculty (rooms c-1.07 and c-1.09), where the Sigma board will present the latest update of the calculated value of the Sigma portfolio. Thereafter, members are to present their investment proposals, which may be buying, selling or a combination of transactions. All the members who are present will be asked to vote on these proposals. Following the majority voting rule, the proposed will be decided, and, if approved, executed by the board the next day before 12:00. Absent members are considered as abstentions for all the proposals being voted on during the meeting. Proxy votes can be handed in personally or by email before the meetings.
9. In which markets and securities can you invest?
Our portfolios are basically open to all financial markets throughout the world. There shall be no restriction on the kind of assets or the amount of assets the portfolio contains, as long as the proposed transaction is approved in the Sigma meeting. (Procedures are explained in details in the following paragraphs.)
There is one restriction, however, concerning security positions, namely no uncovered positions shall be allowed. In other word, it is forbidden to take either long or short positions in future contracts trading. More specifically, when buying or selling future contracts, the underlying assets must be hedged. This restriction, however, does not apply to options trading.
10. Is investing everything Sigma Investments does?
Investing is Sigmas core activity, but we also organize lectures for our members on investment related topics, financial companies in-house days, and workshops on financial topics. As a part of FS FOCUS Sigma Investments also organizes other activities for members besides investing. After our regular meetings we usually meet in the Preuverij for a drink and use the opportunity to exchange ideas besides investing as well. Here you also have the opportunity to meet other people of the EFM organization.
Any questions remaining? Feel free to contact us via secretary@sigmainvestments.nl
