University of Connecticut
PAE-T2-7: Student-Managed Sustainable Investment Fund

Student Managed Fund Managers are selected through a highly competitive application process. Each team generally has 10 fund managers in each of two teams, and the teams are divided between undergraduate and MBA students. Student Fund Managers apply the knowledge they learn in the classroom to real investment portfolios, where they are to comply with governance, ethics and appropriately monitor their portfolios for risk. Student Fund Managers have the option to invest in socially responsible businesses selected for exemplary sustainability performances, renewable energy businesses and industries. In addition to investing in sustainable businesses, Student Fund Managers must also comply with finding suitable investments in multiple assigned industries. To carry out this investment philosophy, the Student Fund Managers focuses on risk in its various forms, including: • Business Model Risk – the avoidance of unstable or uncompetitive business models. • Balance Sheet Risk – the avoidance of companies with unsuitable leverage. • Management Risk – the avoidance of poorly managed companies. • Valuation Risk – the avoidance of companies selling at an inflated price in relation to a reasonable range of true business value. • Obsolescence Risk – the avoidance of businesses with a product or service subject to rapid change or obsolescence. • Aggregation Risk – the avoidance of a common stock portfolio with highly correlated business risks, i.e. a portfolio of companies subject to interest rate risk, similar investment risk, or commodity risk .