YUSIF - Primer

YORK UNIVERSIT Y Student Investment Fund

March 2015

Managed by Students – Supported by Alumni and Friends

The York University Student Investment Fund is an endowment managed by students and supported by alumni and friends. Students will apply course theory and learn to manage the real-life risks and rewards of asset management.

A new way of thinking and investingFor 12 years, York students have been challenged to manage an equity portfolio funded by York Finance Club (YFC) member contributions, but the model is no longer sustainable. Invested each September and liquidated each spring, the fund forces a short-term investment horizon, fails to allow for proper diversification, and rising maintenance and trading costs are dramatically impacting returns. Our students are no longer getting the real life experience they deserve and employers demand.

Proposed by students, for studentsCaught in a vicious cycle of short-term thinking and the growing need for real-world experience, YFC students proposed the creation of the York University Student Investment Fund (YUSIF). In consultation with York University administration, the students spent the last year establishing a formal structure, policies and procedure for the fund.

Their final goal? To attract $50,000 in seed funding from alumni to launch the York University Student Investment Fund in 2015. The overall goal is to raise $100,000 in capital.

Introducing YUSIFThe York University Student Investment Fund

Y USIF PUR POSE

1. To provide live decision-making investment experience to students.

2. To foster practical knowledge by educating York University students by means of authentic industry and security analysis.

IN V E S TM EN T O BJ EC T I V E S

1. To achieve a positive return while mitigating risk.

2. To attain alpha over the benchmark S&P/TSX Capped Composite Index.

A team of student analysts at a stock pitch meeting.

YORK UNIVERSITY STUDENT INVESTMENT FUND


The York University Student Investment Fund will set York students apart:

Benefiting students • Real money and real risk equals real learning. Students will have the

chance to manage real, not simulated capital, for long-term gain.• They will attain superior risk management skills, learn firsthand about

various sectors and asset classes, and experience what it’s like to have fiduciary responsibilities – skills today’s employers demand.

• Students will benefit from working with teams of diverse students, campus-wide.

• The long-term goal of the Fund is to allow future investment returns to be directed to helping students succeed through support of scholarships and bursaries.

Benefiting employers • The YUSIF experience will prepare students for careers in the investment

industry and as business leaders around the world.• Engagement as advisors will put employers in touch with talented

students, helping them learn the career skills they need.

Benefiting alumni and friends • Providing a unique way to support York University as donors and

volunteers, and to benefit its students.• Uphold the winning reputation of your alma mater and ensure the lasting

value of your degree.

Benefiting the School• Enhances the innovative reach and reputation of York University and its

faculties.• Experiential learning adds to our student recruitment power and

strengthens ties with alumni and prospective employers.

Our value propositionHelping Students Succeed

H ELPIN G S T UD EN T S SUCCEED

A portion of the income generated annually from the YUSIF will be reinvested, with future balances supporting financial aid at York University.

“ I was able to leverage the skills and experience I gained from the analyst program to land a summer analyst role in sales and trading at Scotiabank, an absolutely amazing experience that I was able to turn into a full time job offer upon graduation.”CI PR IA N PR EDA (B BA’13) Sales & Trading Analyst, Analyst-in-Training Scotiabank Global Banking Former Chief Investment Strategist, York University Finance Club (2012)



Established by the YFC, the York University Student Investment Fund will will be led by a Chief Investment Strategist and a Portfolio Manager who together will oversee a team of five senior analysts and as many as 15 junior analysts, selected by application to YUSIF. The team will be guided by a Board of Advisors and all security transactions will be executed by York University through a broker relationship managed by York University.

Why an endowment?In addition to providing tax benefits for donors, an endowment provides hands-on opportunities for managing real capital over the long-term. It inspires the accountability and risk management not present in smaller, short-term capital funds or in a simulated portfolio.

How will capital be preserved?YUSIF will be guided by rigorous security analysis by the trained student team and by conservative risk management controls managed by portfolio executives. YUSIF’s asset mix guidelines dictate diversification across the ten economic sectors as identified by the Global Industry Classification Standard (GICS®). More specifically, security selection will be guided by important criteria such as holding long investments only, holding stocks that are over $100M in market capitalization and limiting international equity exposure to 50%.

What is the role of York University and the Board of Advisors?Trades for YUSIF will only be executed by York University. The University will act as a facilitator between the students and the trader; after investment decisions are made by the Chief Investment Strategist and Portfolio Manager. A Board of Advisors comprised of York University professors, staff, alumni and friends will oversee the fund’s activities and mentor the student team.

Thinking like an investment advisorPutting investments from alumni and friends to work

W HAT SE T S US APAR T ?

YUSIF will help prepare future business leaders for the environ-mental, social and ethical com-plexities of modern-day business through its tenets of investing in businesses that demonstrate sustainability, stakeholder consideration and ownership-based government. In a recent survey*, 75% of executives and investors agreed that environ-mental, social and governance initiatives create corporate value in the long-term.

“ Being engaged in the type of analysis where you are investing real money pushes you to put forth your absolute best work and consider all significant variables as well as their potential risks.”B R A N D O N D E WJ I (BBA’14) Y USI F Chief Investment Strategist (2013)

*Barton, D. (2011), Capitalism for the Long Term, Harvard Business Review, March, pp.85–91



Students and alumni, investment advisors and business leaders agree — a student-run endowment fuelled by real money is the best way for future business leaders to learn the real-life risks and rewards of investing in stocks and bonds. A group of students here at York first conceived the idea in 2010 and have been organizing their efforts and strategy ever since. Working with University administration over the past year, they have established a bold plan of action that has every ingredient for success… but one.

Our students need your support.

We are inviting you to celebrate the benefits of their education and to help make a powerful learning opportunity possible for those who follow. A total of $50,000 will immediately establish the York University Student Investment Fund in 2015 and set more than 20 students on a learning journey that will impact their future career outlook and investor mindset. Continued fundraising towards the capital goal of $100,000 will continue in 2016.

In Appreciation of Your Support At the Schulich School of Business, we credit much of our success to the investments of our alumni and friends. Your charitable gift to YUSIF in excess of $10,000 will be recognized and celebrated as follows:

•You will be recognized as a Founding Member of the York University Student Investment Fund.

•Permanent recognition on Schulich’s Major Donor Wall.

•Opportunity to participate on the Advisory Board for YUSIF (to mentor students, provide advice and share your investment experience to students who seek practical knowledge).

•Special invitations to stock pitch meetings organized by YUSIF throughout the academic year.

•lnvitation to an annual impact report meeting at which time YUSIF will provide a fund performance update and highlight the learning journey over the past year.

Helping us achieve our goalA powerful learning opportunity



“ The benefits of a student-managed endowment fund extend past the investment acumen gained by participating students to a broader skill-set required for the business world, like being able to identify the ‘value-add’ in a business.”EL I L E V I N (BBA’14)

H O W T O G I V E

All donations to the York University Student Investment Fund are eligible for a charitable tax receipt.

York University is pleased to accept gifts of cash, cheque or publicly-traded securities.

All donors to YUSIF will receive an annual report detailing the impact that YUSIF had during the academic year.

To make your contribution:

Call: (416) 650-8050

Email: [email protected] or

Visit: www.supportschulich.ca/yusif

Documents

YUSIF - Primer