CFS Prospectus

THE UNIVERSITY OF NEW BRUNSWICK’S

CENTRE FOR FINANCIAL STUDIES

1UNB FREDERICTON AND SAINT JOHN

The Centre for Financial Studies was established by the Faculty of Business Administration in 2002 with Glenn Cleland CFA, MBA, CAIA, ERP as the founding director. The Centre was established with funding from a mix of alumni, friends, local, regional, and national financial institutions. The mandate was and still is to build financial expertise in the Atlantic region. Initially, the New Brunswick Investment Management Corporation (NBIMC) entrusted $1 million to be managed by the Student Investment Fund (SIF). This fund enables students to gain hands-on experience in research, investing, and finance. It is this unique experience, combined with the theory they learn in the financial boardroom of Canada’s 4th ranked university1 , that gives them a distinct advantage when entering the competitive job market. In 2011, the University of New Brunswick (UNB) granted oversight of $2.5 million of their endowment to be managed by SIF, and our partner, SEAMARK Asset Management Ltd. (SEAMARK). It is through partnerships with industry partners such as this that SIF students are now able to boast in terms of assets under management, Canada’s largest undergraduate student-run fund in excess of 7 million dollars.

recent achievements

2014: Accepted under CFA University Recognition program for Faculty of Business Administration’s BBA program, one of only 8 in Canada

2014: Globe and Mail article profiling the Student Investment Fund program as Canada’s largest student-managed fund.

2014: Director named MBA Professor of the year by students, achieves Advanced Communication Bronze certificate while part of founding executive committee for Fredericton Mid-day Toastmasters

2013: Overall 64% of CFA level 1 pass rate (73% past two years) compared to 44% internationally

2013: Overall portfolio performance 2.84% above benchmark2 2010: Opened the TSX2008: 2nd in the world, 1st in North America in the CFA Institute’s

Investment Research Challenge

1 Maclean’s 2014 Comprehensive University rankings2 Combined figure using both NBIMC Benchmark, and UNB Endowment Benchmark

CENTRE FOR FINANCIAL STUDIES


The Faculty of Business Administration and the Centre seek to meet the needs of a wide array of stakeholders: students interested in a career in the financial industry; current financial industry professionals who are seeking to maintain and increase their knowledge; and, entrepreneurs interested in honing their acumen in financial management. We will seek collaborations that will allow us to preserve the core of the program while adapting to a changing world.

Our experiential activities will expand into the entrepreneurship and the energy sector, particularly in New Brunswick, areas where the Centre can draw on faculty expertise and external experience through collaborations with professionals outside of the faculty. Offerings of the Centre are and will be dynamic, collaborative and relevant with a focus on experiential learning and professional designations.

The Centre continues to build on its past success and seeks to develop its offerings over the next four years in the following areas:

executive-in-residence

The Centre will continue to host a senior financial professional to confer with faculty, staff and students and offer a public lecture as an outreach opportunity to create awareness in the broader community and benefitting New Brunswick with additional finance expertise. Our focus in the short-term will be experts in the energy sector.

collaboration for a student-run venture capital fund

The Centre is partnering with the Faculty of Business Administration’s International Business and Entrepreneurship Centre (IBEC) to explore the possibility of developing a student-run venture capital fund. As with the very successful SIF, this would be an experiential learning program whereby students learn how to value a start-up company and invest real money in early stage ventures. This stream would prepare students for employment in the private equity industry once they graduate. In keeping with a focus on professional designations we would use the Chartered Alternative Investment Analyst (CAIA) curriculum. The program will seek a seasoned professional to oversee this Student-Run Venture Capital Fund.

VISIONFOR THE CENTRE FOR FINANCIAL STUDIES


Students in the program will become proficient at making elevator pitches, an essential skill in proposing their ideas to prospective investors. The Centre and IBEC have partnered with members of Toastmasters to create a new chapter in Fredericton to assist students in their communications skills as well as providing access to the community. Toastmasters is an international brand that will also assist students in networking.

finance club and professional certifications

Borrowing from the University of Dayton model, the Centre seeks to have 50+ students per year involved in the Finance Club and SIF combined. Participation in the SIF program is limited at the moment but we have opportunities for growth with the expansion of a Finance Club.

UNB has recently invested in the Bloomberg Professional Service, a comprehensive financial database, for the SIF. As a result, Bloomberg certification can be offered to students not enrolled in the SIF, thus increasing awareness of the program. First- to third-year undergraduate business students and first-year MBA students will be encouraged to become certified. Subsequently, other workshops will be available including Financial Modeling and Oil and Gas Financial Modeling via webinar from the Boston-based training provider Wall Street Prep. Training and upgrading will also be available for alumni on an annual subscription fee basis.

energy experiential learning

The new Bloomberg terminals and other energy databases will facilitate conducting research relevant to New Brunswick and the Atlantic region. Entering into this space will enable students to become more aware of opportunities in the energy sector in New Brunswick and elsewhere and to be prepared to succeed in finding meaningful employment in that industry. The goal is to create partnerships that will lead to an energy certificate. The ultimate goal would be the creation of a multi-disciplinary certificate that reviews the basic engineering, geology and investment elements necessary to enhance understanding of the industry. This would emulate the highly successful Calgary-based Sproule Course on Evaluating Canadian Energy Properties. The knowledge gained in the program will prepare students to work in energy investment banking, strategic planning at energy corporations or financially designated positions. An annual energy conference will be held to profile the latest issues and research in the energy industry.

cfs certificates

The Centre and finance professors are in the early stages of building new partnerships based on core competencies. We are going to collaborate within the faculty with professors in developing various certificates such as a value investing certificates and quantitative expertise such as in algorithmic trading.


Steps have already been made in collaborating between faculties with a Masters of Science in Mathematical Finance and Risk Management being considered with UNB’s mathematics and statistics department.The proposed one-year course-based Masters degree would prepare students for the professional Financial Risk Management (FRM) and/or the Energy Risk Professional (ERP) designations given through exams by the Global Association of Risk Professionals (GARP). These designations have now become standard for the financial engineering industry.

funding

Currently the Centre receives funding from the University, the Faculty of Business Administration, stipends from the performance of the funds invested, donations from alumni and friends, and proceeds from annual symposia.

In order to realize our vision, and to implement the initiatives above, we are seeking support of $500,000 per year for five years, from our alumni, the finance and energy sectors, and others who recognize the importance and value of preparing our youth for careers in this dynamic industry, locally, nationally and internationally. Appendix


proposed four-year implementation milestones

2013-14 2014-15 2015-16 2016-17 2017-18

CORE PROGRAMS

Student Investment Fund • • • •

futures Atlantic Symposium • • •

Endowment Investment Advising • • • •

NEW INITIATIVES

Executive-in-Residence • • • •

Student-Run Venture Capital Fund with IBEC

Toastmasters,Bloomberg

• • Student-Run Venture Capital Fund

Finance Club • • • •

Energy Finance Conference Research Certificates/Research Cerificates/Research

Certificates Quantitative Value Investing Risk Management •

funding options and naming opportunities

INVESTMENT AREAFUNDS REQUIRED

(ANNUALLY)5-YEAR NAMING OPPORTUNITY

ENDOWED NAMING OPPORTUNITIES

Centre for Financial Studies $275,000 $1,250,000 $5,000,000

Director of CFS/Outreach Coordinator

$225,000 $1,125,000 $4,500,000

Energy Finance Chair $100,000 $500,000 $2,000,000

Tech coordinator/Databases

$55,000 $275,000 $1,100,000

Summer students $40,000 $100,000 $500,000

Risk Management $20,000 $100,000 $500,000

Energy Conference $20,000 $100,000 $500,000

futures Atlantic Symposium $15,000 $75,000 $375,000

Finance Club $15,000 $75,000 $375,000

Executive-in-Residence $10,000 $50,000 $250,000

APPENDIX

Development & Donor RelationsUniversity of New Brunswick

P.O. Box 4400Fredericton, NBE3B 5A3 CANADA

P.O. Box 5050Saint John, NBE2L 4L5 CANADA

(506) [email protected]

unb.ca/donations

THE UNIVERSITY OF NEW BRUNSWICK’SCENTRE FOR FINANCIAL STUDIES

CFS Prospectus

Documents

Transcript of CFS Prospectus