Student Managed Investment Fund

Student Managed Investment Fund

The University of Queensland Student Managed Investment Fund is a UQ Business School initiative designed to promote the development of asset management skills by allowing students to manage a live equity portfolio.

Established in 2017, the University of Queensland Student Managed Investment Fund (UQ SMIF) enables UQ Business School students to apply their academic knowledge and acquire practical skills by managing a portfolio of Australian equity securities using real money in real time. Students gain exposure to the world of asset management by assuming the role of analysts and are responsible for construction, monitoring and management of the fund.

 

Thank you for your interest in the Fund.

Due to the large interest already expressed by UQ Business School students, applications have now closed.

 

About The Fund

The Student Managed Investment Fund offers students at the UQ Business School a unique opportunity to construct and manage a real portfolio of securities listed on the Australian Securities Exchange (ASX).

The Fund has been seeded with $200,000 from external donations and internal UQ funds and aims over time to generate income and capital gains for the University which will ultimately be used for Scholarships.

Students will be involved with every aspect of managing the fund, from screening the available investment universe for potential ideas, undertaking fundamental analysis of selected stocks, performing valuation work, pitching their ideas to the Investment Committee and determining portfolio weights as well as on-going monitoring, management and reporting on the portfolio.

The Fund will hold weekly meetings throughout each semester where stock pitches will be conducted and broader investment topics canvassed. Guest speakers from commerce and industry will be sought including senior management from ASX listed companies, and leading figures from the investment community.

This is an extra-curricular activity and so participation in the Fund is open to all students formally enrolled in a UQ Business School program (e.g. Bachelor of Commerce, Master of Commerce) regardless of whether they have any formal finance training. Internship opportunities may arise as a result of the contact between students running the Fund and our industry contacts and partners.

Interested students will compete to be a member of one of several Analyst teams. Each team will comprise up to four student analysts and will be led by a more experienced student Portfolio Manager.

The Student Portfolio Managers will sit on the Investment Committee which will be chaired by Dr Clive Gaunt, a member of the UQ Business School academic staff as well as an experienced investment manager. The Investment Committee will make the final buy and sell decisions after considering the analytical work and stock pitches performed by Analyst teams.

The overall governance of the Fund is provided by the SMIF Advisory Committee which will include members from industry as well as key stakeholders from within the University.

Investment Objectives and Strategy

Investment objectives

  • To preserve contributed capital, over the longer term – while recognising equity investments are inherently risky and loss of capital may occur from time to time.
  • To achieve, over the longer term, a rate of return of CPI + 6% which will see the capital and income stream grow;

 

Investment strategy

The Fund will aim to invest principally in ASX listed companies with most or all of the following characteristics:

  • Track record of profitability and cash generation;
  • Capable and motivated management;
  • Resilient balance sheet;
  • Above average returns on capital supported by a sustainable competitive advantage;
  • The ability to grow revenue and earnings over time;
  • An attractive price.

Student Roles

There are three different roles for students:

Student Portfolio Manager (PM)

Student PMs hold important leadership positions within the SMIF. They are responsible for providing supervision and guidance to a student analyst team during the semester, proposing potential stock ideas to the team and assisting the team as they conduct analysis and valuation on those stock ideas. The PMs may also have other responsibilities including portfolio reporting, activities co-ordinator, technology and marketing. All PMs will sit on the Investment Committee and participate in portfolio construction and maintenance. PMs usually will serve at least one semester as a student analyst prior to their appointment as portfolio manager. Current and outgoing PMs will select incoming PMs for the upcoming semester with the final decision on appointments made by the SMIF Convenor.

 

Student Analyst (SA)

Student Analyst (SA) teams normally comprise 3-4 students. These teams will work together during the semester on specific stock investment ideas under the guidance of a designated PM. The work will involve fundamental analysis focusing on understanding the company, the business it operates and industry it is part of, as well as undertaking appropriate valuation work. This work will result in a document and presentation which will be pitched one or more times to the SMIF cohort. Pitches that result in a buy recommendation will subsequently be formally considered by the Investment Committee for inclusion in the Fund. Teams will be provided with feedback during this process.

As there are a limited number of PMs, there is also a limited number of positions available on these teams. Consequently, there is a competitive selection process for these teams. Interested students will be required to do a short stock pitch in written and/or oral form as part of the selection process.

 

Student Member (SM)

Any UQ Business School student that does not wish to participate as a Student Analyst or is unsuccessful in the selection process is invited to join the SMIF as a Member and encouraged to attend weekly SMIF sessions where they can participate in discussions and listen to team stock pitches and guest speakers.

SMIF Academic Staff

Dr Clive Gaunt
Senior Lecturer in Finance and SMIF Convenor

Dr Clive Gaunt is a Senior Lecturer at the UQ Business School where he conducts research with a focus on asset pricing and stock market anomalies. Clive has published his work in a range of peer reviewed journals including Accounting and Finance, Pacific Basin Finance Journal, Australian Journal of Management and JASSA. Clive has a passion for using data and evidence to inform investment decision making and brings this passion to managing several real world equity portfolios. His wealth of funds management experience provides students with valuable insight and learning opportunities.

 

Professor Karen Benson
Professor of Finance and Deputy President of UQ Academic Board

Professor Karen Benson is a Professor of Finance at UQ Business School. Karen's research focuses on Funds Management with particular reference to factors that drive performance and fund flows. Other topics of interest include socially responsible investment funds, social impact bonds and the use of derivatives by corporations and fund managers. Her research has been well received by both practitioners and academics having been published in internationally refereed journals including Journal of Banking and Finance, Pacific Basin Finance Journal, and Journal of Business Ethics.

 

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