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Oxcel Endowment Investment

Oxcel Endowment Investment. Saamiah Ali | Alistair Barton | Lucia Mkhitarova. The Aim. We aim to help the trustees of the Oxcel College endowment pursue their investment goals : through considering the trustees’ concerns with socially responsible investing

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Oxcel Endowment Investment

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  1. Oxcel Endowment Investment Saamiah Ali | Alistair Barton | Lucia Mkhitarova

  2. The Aim We aim to help the trustees of the OxcelCollegeendowment pursue their investment goals: • through considering the trustees’ concerns with socially responsible investing • and through research and analysis into the fund options

  3. The Methodology 1) Address the Board’s concerns: i) Social responsibility ii) Fund experience 2) Create criteria rubric integrating concerns and sustainable and economic aspects 4) Overview of the three funds 5) Award points using rubric 6) Recommend a plan of action

  4. Concern 1: Social Responsibility The board is concerned about the possible multiple approaches. • Investments that have a positive return to society • 3 categories defined by board: SRI, green and sustainable funds • Our perspective: • Holistic and multidimensional • Value each category and perspective

  5. Concern 2: Fund Experience The board requires a fund manager with an excellent reputation for risk adjusted performance: • Therefore, we need to consider i) the fund’s experience ii) associated risks • 2. This is done by assessing the performance of the fund

  6. Criteria

  7. Fund One: Abbe SRI Fund Overview: • Focus on: • socially ethical companies • smaller companies (mid, small, micro-cap) • Avoid firms with major sin stock investment Investment Analysis: • Poor financial reputation • Restricted Diversity • Focused on Negative Screening

  8. Top 10 Holdings Stericycle, Inc. (SRCL) Middleby Corporation (MIDD) Acuity Brands Inc (AYI) Westinghouse Air Brake Tech Corp (WAB) Trimble Navigation Ltd. (TRMB) Verisk Analytics, Inc. (VRSK) LKQ Corporation (LKQ) Clean Harbors, Inc. (CLH) Pentair, Inc. (PNR) Hexcel Corporation (HXL) Fund Two: Winslow Green Growth Fund Overview: • focus on: • long term capital growth • small domestic (US) companies • environmentally orientated investments • renewable energy and efficiency technology • moving away from its risky reputation

  9. Fund Two: Winslow Green Growth Fund 1) Stericycle, Inc. • Manage regulated waste and complementary services • Initiatives to reduce energy and waste via clean, low impact ways 2) Middleby Corporation • Cooking equipment • Good business reputation, winning awards for a good growing business 3) Acuity Brands Inc • lighting (and solutions) company • sustainable focus: reduce waste and pollution, and increase efficnecy • technological development • zero landfill certification and LEED

  10. Top 10 Holdings: Apple Inc Google Inc Cl A Microsoft Corp Johnson + Johnson Wells Fargo + Co Procter + Gamble Co/The Jpmorgan Chase + Co Pfizer Inc Intl Business Machines Corp Bank Of America Corp Fund Three: Calvert Social Investment Equity Fund Overview: • seek growth of capital • seek to invest in firms with focus on sustainable practices • most investment in large companies

  11. Fund Three: Calvert Social Investment Equity Fund 1) Cvs Caremark Corp • largest pharmacy in the United States • created a Environmental Leadership Council in 2007 • partners with nonprofits and other sustainable initiatives 3) Apple Inc. Source: apple.com • Houses bulk of operations in China; Foxxcon • 54.5% reliance on coal data centres (April 2011) 2) Google Inc • sustainable investments • however, still use huge amounts of energy Source: google.com

  12. Awarding Points

  13. Concern 3: Diversification The third concern of the trustees’ is decreasing the diversification of the endowment: • Thus the trustees must consider investing in different funds • Diversification is key to maintaining low risk and guarding against poor market performance • We recommend diversifying their portfolio based on the short term (within next 5 years) and long term (after 5 years)

  14. Recommendations for Short Term Short Term - next 5 years: • Market Performance is key in short term: allows further investment in social responsibility after growth of capital • 60% in Colvert Fund, due to their high scores in experience and performance • 40% in Winslow Fund, due to their high score overall, and their overall good sustainability focus • We decided not to invest in Abbe SRI for the short term, due to their overall low score and their lack of reliability

  15. Recommendations for Long Term Long Term - after 5 years • Reassess growth and policies in 5 years • Monitor funds • Expect to start investing more in Winslow for their high sustainability and projected long term growth in green energy technology/popularity, and less in Calvert • Use profit gathered from Calvert to invest in Winslow

  16. Thank you for Listening Any questions?

  17. References Abbe SRI Fund: Yahoo! Finance Winslow Green Growth Fund: Yahoo! Finance https://www.google.com/finance?q=MUTF:WGGFX http://www.stericycle.com/sustainability-commitment http://www.acuitybrands.com/investor-info/corporate-information/~/media/696148dc47b348e69f427ff2a03de529.ashx http://www.altenergystocks.com/comm/content/winslow-green-growth-fund/ http://www.altenergystocks.com/archives/2009/10/green_energy_mutual_funds_compared.html http://www.socialfunds.com/funds/profile.cgi?sfFundId=1030 Calvert Social Investment Equity Fund: Yahoo! Finance https://www.calvert.com/fundHoldings.html?t=2&fund=933 http://info.cvscaremark.com/about-us http://google.com http://apple.com http://www.theguardian.com/environment/2011/apr/21/apple-least-green-tech-company http://www.bloomberg.com/news/2012-06-13/is-apple-the-model-of-a-sustainable-company-.html Image http://www.upenn.edu/pennnews/current/sites/www.upenn.edu.pennnews.current/files/imagecache/article-350/images/GreenFund.jpg

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