Saint Mary's University
PAE-T2-7: Student-Managed SRI Fund

The IMPACT Program is the Sobey School of Business’ student run investment fund. It is a really money fund with rough $195,000 under management, of which roughly 75% is actively managed Canadian equity. All of the investment decisions, from asset allocation to active stock selection, are performed solely by the students and go through a rigorous review process that includes presentations and discussions with peers, faculty and industry mentors. The actively managed Canadian equity predominately follows a fundamentals analysis approach. It is a long-horizon fund that prescribes to the growth-at-a-reasonable-price, GARP, investment philosophy. A History of Excellence Beyond the management of the fund, IMPACT students are actively involved in representing the Sobey School of Business in various competitions. The students’ have a demonstrated history of excellence in several venues. The primary purpose of the Investment Management of Portfolios in Atlantic Canada Training (IMPACT) Program is to provide an elite group of students from the Sobey School of Business at Saint Mary's University with practical, real world experience in money management. Thanks to a generous anonymous donation, the Sobey School of Business has been able to establish the IMPACT Fund. The student participants in the Program make all investment decisions for the IMPACT Fund, with significant input and advice from both Sobey Faculty and mentors from the investment community. The IMPACT Charter and the Investment Policy Statement (IPS) regulate the activities of the program. For students, the Program represents a two-year commitment. Students enter the program as either first-year MBA students or third-year undergraduate students. The Program is restricted to an elite group of no more than 10 students in each year of the Program. In all duties, students will be held to professional standards of conduct. In their first year, students are designated Research Associates (RAs). Their duties involve providing assistance to the more senior Fund Managers (FMs), who manage the Fund. Their duties include asset allocation decisions, security selection and preparation and presentation of professional reports. Each FM is assigned to one or more economic sectors for which they act as primary analyst. They make investment decisions as a team, with the guidance of industry mentors. In all decisions, FMs are faced with the same types of constraints regarding asset allocation and security selection decisions as those faced by real world money managers. In addition, FMs are expected to play a significant role in the training of the RAs. The IMPACT Program cannot succeed without significant involvement from the professional investment community. This involvement is evident on many fronts. First, the Board of Directors that oversees the IMPACT Program includes members from both the Sobey School of Business and individuals from the outside investment profession. In addition, a number of Mentors from outside the university are available to students to provide advice and guidance in their investment decisions. In fact, all trade decisions made by the students must receive approval by a mentor before being implemented. The purpose of this is not to second guess student decisions, but to make sure that their decision has considered all possibilities, has been made logically, and is consistent with the investment profile and asset allocation constraints of the fund. This year, students have been invited to several events hosted by investment professionals. The plans for the future include hosting many seminars orchestrated by these professionals in an effort to increase the students' exposure and understanding of various aspects of money management and investing. Finally, whenever possible, students will be provided with internships in the financial industry for the summer months between their first and second year in the program. For further details email: IMPACT.Fund@smu.ca