SAINT MARY’S COLLEGE

INVESTMENT GROUPManaging the

Responsible Investment Fund

EXECUTIVE TEAM

Simon Tryzna- Founder & President

Senior

B.A. Business Administration, Finance Concentration; B.S. Economics; Math Minor

Honors Program Member

President of SEBA’s Dean’s Undergraduate Advisory Board

Former Finance Intern at Northgate Capital, an Alternative Assets firm

Currently interning at Summit Wealth & Retirement Partners, a Wealth Management Firm

EXECUTIVE TEAM

Amanda Kopp- Co-Founder & Controller

Senior

B.S. Accounting & Business Administration

Secretary of SEBA’s Dean’s Undergraduate Advisory Board

Audit Intern at KPMG Summer 2014

Will be working at KPMG as an Audit Associate after graduating from Saint Mary’s

EXECUTIVE TEAM

Max Teranen- Portfolio Manager & Vice President

Junior

B.S. Economics, Focus in Finance & Sustainability

Economics Club President

Member of SEBA’s Dean’s Undergraduate Advisory Board

Former intern at Merrill Lynch

Currently interning at Lincoln Financial Advisors

CREATION

Original goal was to create a “hands-on” product, something tangible and a place where students can take what they learned in the classroom and directly apply it to a real world experience.

Idea to create something like this was floating around for the last three years, but it really started to take place towards the end of Spring semester 2013.

Over the last year and a half, we have met with numerous professionals and solicited a significant amount of advice in order to create this group.

Primarily modeled after the University of Oregon Investment Group and the Investment Club at Puget Sound.

RESPONSIBLE INVESTMENT FUND

Mission:

Saint Mary’s College Investment Group is a student-run organization. Its mission is to enhance student’s financial literacy and investment capabilities while promoting social responsibility through managing the Responsible Investment Fund.

Privately funded $125,000 portfolio, actively managed by students

The Responsible Investment Fund primarily invests in the publicly traded stocks of companies that are deemed to advocate and practice responsible business

SAINT MARY’S COLLEGEINVESTMENT GROUP

Open to all majors and class levels.

Ultimate goal is to learn together about investing and financial markets.

Members will research companies on their own and present their findings to the group, along with their investment recommendation.

Our members will learn how to preform a stock valuation in hopes of finding companies currently undervalued in the stock market. 

Students manage account with limited direction from advisory panel

STRUCTURE

Meet once every two weeks

Meeting Format: Opening remarks - President Portfolio Update - Portfolio Manager Market Update / Review Macro Economic Discussion / Market Forecasting Active Member Presentations Voting on investments (if necessary) - Controller Final Thoughts - President

GOALS

Our goals for this group are simple: We want all students to have the ability to learn first hand about

Financial Markets. We want the students to learn to collaborate with one an other on a

project that they can bring up at their interviews. With a large amount of companies beginning to focus on Responsible

Investing, we want Saint Mary’s students to have an edge to get jobs at those companies.

We want to see if we can do all of these things while generating positive returns for our portfolio.

ORGANIZATION

Investment Panel (Five Responsible Investment Professionals)

- Oversee the proposals that we come up with as a group and help to guide the group to achieve it’s goals

Executive Team

- Organize & facilitate funding, meetings, & group organization.

- Assess fund proposals

Members

- Sit in / vote on proposals

- Learn about investing & make proposals

MEMBERSHIP

Active Members: Members who attend a majority of the meetings Members that frequently valuate companies and present their findings

to the Group Members who have the ability to vote on the presentations

Passive Members: Members who attend occasional meetings Primarily motivated by learning about Financial Markets but not actively

participating in the Investment Group

INVESTING OVERVIEW

What is a stock?

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. 

What is Investing?

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. 

STOCK CLASSIFICATIONS

Blue Chip: Nationally known company who pays a consistent dividend

Growth: Company that is expected to have above average increase in earnings

Cyclical: Heavily effected by Market Indicators (Fluctuates with market)

Counter Cyclical: Moves in opposite direction of economy

Defensive: Resistant to normal business cycles

Large Cap: Market Capitalization = $10 billion and up

Mid – Cap: Market Capitalization = $1 - $10 billion

Small Cap: Market Capitalization = $1 billion or less

SECTOR CLASSIFICATIONS

In addition to diversifying our portfolio by stock size and movement with respect to the market, we will also take a look at each sector in order to study them in depth and get a sense of the different companies in each sector and how each sector differs from one another within the financial markets.

Different sectors: Basic Materials Conglomerates Consumer Goods Financial Healthcare Industrial Goods Services Technology Utilities

RESPONSIBLE INVESTING

The objective of this fund is to grow its initial investment through socially conscious, sustainable or “green” investments, while keeping an ethical approach in seeking financial return and social good.

Approach:

Negative Screening and Positive Investing

-Excluding socially irresponsible companies while including responsible ones.

Definition of what constitutes a “responsible” investment has many definitions. Ultimately, our goal will be to do due diligence on all investments and make sure we deem the companies responsible with respect to their environmental impact, their corporate governance, and their overall social responsibility.

ASSESSING RISK

Since this is an extremely aggressive portfolio by consisting of 100% equity positions

Risk is Minimized by:

Diversification across many different sectors and asset classes

Using high dividend yielding companies to generate a more predictable income stream

TARGET ASSET ALLOCATION

40% Blue Chip/Large Cap

30% Growth/ Small - mid Cap

10% Defensive

10% Speculative

10% Emerging & Foreign Markets

VALUATION

Goal is to find companies that we, as Group members, deem undervalued in the Financial Markets

This can be done by looking at the last three year’s of a company’s financial statements, seeing trends, and combining historical data with current news to project future free cash flows.

SAMPLE VALUATION - BLACKBERRY

PROJECTED GROWTH - BLACKBERRY

PROJECTED CASH FLOWS - BLACKBERRY

VALUATION

VALUATION

Based on our estimates, we believe that Blackberry should be trading at around $11.66

These are bullish estimates as we believe in the leadership of Blackberry and that the worst is behind the company.

Stock price was at a daily high of $11.17 shortly after the release of their second quarter earnings, but has fallen to around $9 during the recent sell-off.

One of the goals we will attempt to do as a Group is to look at macro economic signals and see if we can purchase equities on a discount

REPORT

In addition to the valuation spreadsheet, our members will be tasked with doing a brief two page report, summarizing their findings.

These reports will be published online.

Good way for students to show potential employers the quality of work they have done.

FINAL THOUGHTS

A lot of the basic infrastructure for the Group is in place.

Aiming to hold an informal meeting to discuss logistics on October 27th.

Initial goal is to invest in a handful of equities by December so we have a portfolio heading into 1Q15.