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Michael F. Price Student Investment Fund the MPSIF Information Session November 7, 2012. Richard M. Levich Professor of Finance. What is MPSIF?. It’s a class, formally FINC-GB.3320, “Managing Investment Funds” But not an ordinary class. It’s “Hands-On” “Experiential” “Learning-by-Doing” - PowerPoint PPT Presentation
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Michael F. PriceStudent Investment Fund
the MPSIF
Information SessionNovember 7, 2012
Richard M. LevichProfessor of Finance
Page 2
What is MPSIF?
• It’s a class, formally» FINC-GB.3320, “Managing Investment Funds”
• But not an ordinary class. It’s » “Hands-On” » “Experiential”» “Learning-by-Doing”
• Admission is limited. By application only.
Page 3
What’s Special About MPSIF?• The structure
» 3.0 credits, 3 hours per week – But 2 semester commitment (spring/fall or fall/spring)
» Why? Continuity in management of real money.
• The deliverables» Financial writing, oral presentations, financial
decisions in a group setting
• The goals» Honing analytical and presentation skills» Deeper understanding of governance and fiduciary
responsibilities in running an endowment fund
Page 4
What Happens in MPSIF?
• Students manage real money, roughly $1.70 million of NYU endowment
• Students work in teams (4 funds) that manage separate pools of equity and fixed income investments
• Students perform all of the key tasks» Economic, sector and company research» Stock selection, buys & sells, monitoring» Fiduciary duties – Proxy votes, minutes,
Annual Report(s), Board presentations
Page 5
What Else You Can Expect• Short lectures from Professor overseeing the
course• Presentations to an outside board of
professionals• Guest speakers from industry including fund
managers and investment strategists• Working with Stern School officials in Public
Affairs, Admissions, Development, and Alumni Affairs to help showcase Stern and MPSIF
Page 6
Organization of MPSIF
M P G ro w thP ortfo lio M a nage r
M P S m a ll C apP ortfo lio M a nage r
M P V a lueP ortfo lio M a nage r
M P F ixe d Inco m eP ortfo lio M a nage r
M P S IF -E xec C om mF aculty Advisor
M PSIF P resident + PMs
A dviso ry B oa rd
MPSIF – Exec Committee
Faculty Advisor
MPSIF President + Treasurer + PMs
Management Advisory Council
Page 7
How are the Funds Run?
• Students run MPSIF, but within limits. There are some “Rules of the Game.”
• MPSIF is a long-only endowment fund.• Permitted securities include: Stocks, bonds, money market
instruments, and limited mutual funds and ETFs. NYU is a tax-exempt institution.
• Goals include (a) returns in excess of inflation over a 3-5 year period, (b) returns exceeding an appropriate benchmark, (c) a focus on long-term opportunities rather than short-term trading gains, (d) an acceptable level of diversification.
Page 8
MPG The Growth Fund
As of November 2, 2012
Benchmark: Russell 1000 Growth
Page 9
MPSThe Small Cap
FundAs of November 2, 2012
Benchmark: Russell 2000
Page 10
MPVThe Value Fund
As of November 2, 2012
Benchmark: Russell 1000 Value
Page 11
MPF The Fixed Income
FundAs of November 2, 2012
Benchmark: Vanguard Total Return Fund
Page 12
How has MPSIF Performed?
Since March 2000, our initial $1.80M endowment has shrunk to $1.66M as of 10/31/12, not counting $1.09M in mandated distributions; a 64.2% total return in 12.5 years (~3.92% p.a.), slightly ahead of the popular indices and our blended benchmark (75% equity and 25% fixed income).
MPSIF Funds Return Performance
0.500.600.700.800.901.001.101.201.301.401.501.601.701.801.902.002.102.202.302.402.502.60
03/01/2000
02/01 02/02 02/03 02/04 02/05 02/06 02/07 02/08 02/09 02/10 02/11 02/12
Grow thSmal CapValueTotal Fund
cumulative monthly returns
Excludes annual withdrawal in May and interfund transfers. Volatility of three equity funds higher after April 2002 when fixed income component excluded.
Page 13
How Do I Join MPSIF?
• Submit an application (to [email protected])
» Submit a letter that • Describes your qualifications and explains why you
desire to join the MPSIF. • Describes the contributions you can make to MPSIF
and what you expect to gain by participating in the Fund.
• Notes whether you have taken Foundations of Finance and whether you have taken, or intend to take Valuation.
» Attach your current resume
Page 14
Final Thoughts on Applying to MPSIF
• Open to Day MBAs and Langones
• Foundations is required » Corporate and/or Valuation are helpful
• Not just for Finance majors – This is a capstone course for anyone who wants a hands-on style course, and enjoys learning-by-doing in a less-structured setting.
• To learn more, visit http://pages.stern.nyu.edu/~mpsif/
