Student Investment Fund
The Student Investment Fund (SIF) program provides students with real-life opportunities to learn the theory and practice of portfolio management using real money and performing in real-time.
The program's boardroom was designed to replicate a small investment firm. It is a laboratory for financial education and discovery. SIF students engage in the ultimate experiential learning opportunity using leading-edge, industry standard financial technology.
The CFS has published it's 10th Anniversary Edition of a document called "Investment Education for the 21st Century" which summarizes the strategy of the Centre for Financial Studies and celebrates the SIF's stellar portfolio performance from 2010-2013.
Investment Process
The Student Investment Fund program uses an enhanced indexation approach to managing its equity portfolio. From a portfolio performance perspective, the students in the SIF program outperformed their benchmark (TSX/ S&P 60; Scotia McLeod; All Government Indexes; and T-bills) by cumulatively 120 basis points since the 2008 financial crash to the end of 2011.
These results are stellar, particularly in light of the fact that many professionals are still trying to get their client's portfolios back to their pre-2007 highs. Not only have the students attained those levels, they have exceeded them. At year end 2011, the investment savvy students had well surpassed their 2007 high of $2.2 million parlaying the initial capital into a yearend balance of $2.6 million, all from investment returns.
The Fund's equity portfolio is separated into two components: the beta portfolio, where students use exchange traded funds and a cash portfolio to equitize the market; and the alpha portfolio where students create a theoretical long and short or market neutral portfolio to generate excess returns. In addition, in September 2011, the Student Investment Fund program was awarded an additional $2.5 million of UNB's endowment funds with oversight by Leeside Capital Management Inc.
Chartered Financial Analyst Level 1 Study Preparation
A core component of the program is its structured study preparation for the CFA Level 1 exam. Since inception, students in the SIF program have attained an average 64% pass rate compared to the global industry average pass rate of 44%. The students' average pass rate over the past two years was 79% - an outstanding accomplishment that continues to significantly outpace the industry average.
