slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finan PowerPoint Presentation
Download Presentation
Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finan

Loading in 2 Seconds...

play fullscreen
1 / 19

Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finan - PowerPoint PPT Presentation


  • 159 Views
  • Uploaded on

Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finance. by Dr. Thomas Gjerde and Dr. Russell Kershaw Clark H. Byrum School of Business Marian University Indianapolis, Indiana Contact (tgjerde@marian.edu). Preview.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finan' - misae


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Leveraging a Student Managed Investment Fund to Create Experiential Learning Opportunities for Students Outside of Finance

by

Dr. Thomas Gjerde and Dr. Russell Kershaw

Clark H. Byrum School of Business

Marian University

Indianapolis, Indiana

Contact (tgjerde@marian.edu)

preview
Preview

Literature on Student Managed Funds (SMF’s)

Venture Fund vs Investment Fund

Planning and Implementation

Leveraging the Fund

Clark H. Byrum School Of Business, Marian University

literature
Literature
  • Lawrence, E. (2008). Student managed investment funds: an international perspective. Journal of Applied Finance, 18(2), 67-83.
    • 1969: 12 funds – 2008: 314 Funds worldwide, 289 U.S. Funds
    • Fund Size: $2000 to $62 million (Texas at Austin)
    • Sources: 28% from university endowment, 23% from a single large donor, 49% from various sources, including grants.
    • Average U.S. fund started with $414,000 in initial capital (2000-2007).

Clark H. Byrum School Of Business, Marian University

literature1
Literature
  • Lawrence, E. (2008). Student managed investment funds: an international perspective. Journal of Applied Finance, 18(2), 67-83.
    • 71% of U.S. funds are structured as a formal class.
    • Students are responsible for all investment decisions in 90% of funds.
    • 42% restricted to undergrads, 48% include both undergrad and grad students

Clark H. Byrum School Of Business, Marian University

literature2
Literature
  • Lawrence, E. (2008). Student managed investment funds: an international perspective. Journal of Applied Finance, 18(2), 67-83.
    • 82% of U.S. funds invested in common stock
    • 79% of U.S. funds have a diversification policy.
    • Several funds manage money of outside investors.

Clark H. Byrum School Of Business, Marian University

literature3
Literature
  • Lawrence, E. (2008). Student managed investment funds: an international perspective. Journal of Applied Finance, 18(2), 67-83.
    • 1997-Michigan created the first venture fund with $3 million
    • 6 schools followed, with Utah’s the largest at $18 million

“A student managed venture capital fund offers the best opportunity in years to capitalize and profit from the research strengths of universities while enhancing the teaching mission.”

Clark H. Byrum School Of Business, Marian University

literature4
Literature

What are the most important skills/qualities organizations value in a new college graduate?

1. Ability to work in a team

2. Leadership

3. Communication skills

4. Problem solving skills

5. Strong work ethic

6. Analytical skills

(National Association of Colleges and Employers Job Outlook 2012 survey)

Clark H. Byrum School Of Business, Marian University

literature5
Literature

Clinebell, J.(2013) Socially responsible investing and student managed investment funds: Expanding investment education.Financial Services Review 22: 13-22.

The learning objectives normally identified for SMIFs include security analysis, teamwork, communication skills, and decision-making skills.

Clark H. Byrum School Of Business, Marian University

student managed funds
Student Managed Funds

Investment Fund

Venture Fund

Clark H. Byrum School Of Business, Marian University

Publicly traded securities

Stocks, bonds, derivatives traded on an exchange

Larger companies

Liquid assets

Valuation based on publicly available information

No piggybacking required

Privately held companies

Equity stake, loans, revenue share

Smaller companies

Less liquid

Valuation based on private information

Piggybacking

student managed funds1
Student Managed Funds

Investment Fund

Venture Fund

Clark H. Byrum School Of Business, Marian University

Easy to measure returns during holding period

Risk is easier to quantify

No interaction with management

National or global focus

Difficult to measure returns during holding period. (milestones)

Risk is harder to quantify

Interaction with management

Local or regional focus

planning and implementation
Planning and Implementation

Clark H. Byrum School Of Business, Marian University

  • Budget
    • Technology Upgrades?
    • Professional meeting space?
    • Faculty?
      • Team with a practitioner?
    • Capital
      • Sources
      • Periodic additions
      • Payouts to scholarships?
planning and implementation1
Planning and Implementation

Clark H. Byrum School Of Business, Marian University

  • Advisory Board
    • Venture capitalists, attorney, lenders, etc.
  • Partners
    • Localstake, venture funds, venture clubs and organizations, Chamber of Commerce

These groups will provide a flow of firms seeking funds.

planning and implementation2
Planning and Implementation

Clark H. Byrum School Of Business, Marian University

  • Class or Club?
    • Class may only meet once per year.
    • Club may operate throughout the year.
    • Combination may make sense.
    • Elective or required?
planning and implementation3
Planning and Implementation

Clark H. Byrum School Of Business, Marian University

  • Objectives specific to Finance
    • Most SMF’s don’t have return maximization as a top objective, although sustainability is critical.
    • Develop an appreciation for the link between business development and venture capital/general business funding
    • Understand and apply the tools of business valuation.
    • Develop fluency in the areas of valuation and venture capital.
    • Build relationships with finance professionals.
planning and implementation4
Planning and Implementation

Clark H. Byrum School Of Business, Marian University

  • Objectives beyond Finance

Back to the National Association of Colleges and Employers Job Outlook 2012 survey -

1. Ability to work in a team

2. Leadership

3. Communication skills

4. Problem solving skills

5. Strong work ethic

6. Analytical skills

leveraging the venture fund
Leveraging the Venture Fund

Clark H. Byrum School Of Business, Marian University

  • Create mutually beneficial arrangements between campus and funded ventures.
    • Partnership provisions can be contractual, i.e. part of the funding. Growth companies need talent in many areas!
      • Internships
      • Student consulting
      • Class projects
      • Employment
leveraging the venture fund1
Leveraging the Venture Fund

Clark H. Byrum School Of Business, Marian University

  • Create mutually beneficial arrangements between campus and funded ventures.
    • Public Relations
      • Public Relations/COM students create and manage an annual PR event.
        • Invite the board, chamber of commerce, local media
        • Highlight partnerships, jobs created, returns, etc.
        • Raise community awareness of the school, the fund, the business partners.
leveraging the venture fund2
Leveraging the Venture Fund

Clark H. Byrum School Of Business, Marian University

  • Fundraising
        • A student managed venture fund attracts interest
          • Chamber of commerce
          • Banking
          • Local government
          • Entrepreneurs
conclusion
Conclusion

Clark H. Byrum School Of Business, Marian University

Literature on Student Managed Funds (SMF’s)

Venture Fund vs Investment Fund

Planning and Implementation

Leveraging the Fund