OXCEL ENDOWMENT INVESTMENT

Saamiah Ali | Alistair Barton | Lucia Mkhitarova

The AimWe aim to help the trustees of the Oxcel College endowment pursue their investment goals:• through considering the trustees’

concerns with socially responsible investing• and through research and analysis

into the fund options

The Methodology1) 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 funds5) Award points using rubric 6) Recommend a plan of action

Concern 1: Social Responsibility The board is concerned about the possible

multiple approaches.1. Investments that have a positive return to society2. 3 categories defined by board: SRI, green and

sustainable funds3. Our perspective:

a. Holistic and multidimensionalb. Value each category and perspective

The board requires a fund manager with an excellent reputation for risk adjusted performance:

1.Therefore, we need to consider i) the fund’s experience ii) associated risks

2. This is done by assessing the performance of the fund

Concern 2: Fund Experience

Criteria Economic Environment

al Social

● Corporate Governance

● Fund experience

● Fund performance

● Focus on alternative energies and technology

● Environmental policies

● Absence of Sin stock

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

Fund Two: Winslow Green Growth Fund Overview:• focus on:

o long term capital growth

o small domestic (US) companies

• environmentally orientated investments

• renewable energy and efficiency technology

• moving away from its risky reputation

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

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

Overview:• seek growth of capital• seek to invest in firms

with focus on sustainable practices

• most investment in large companies

Top 10 Holdings:Apple IncGoogle Inc Cl AMicrosoft CorpJohnson + JohnsonWells Fargo + CoProcter + Gamble Co/TheJpmorgan Chase + CoPfizer IncIntl Business Machines CorpBank Of America Corp

Fund Three: Calvert Social Investment Equity Fund

2) Google Inc● sustainable

investments● however, still

use huge amounts of energy

Source: google.com

3) Apple Inc.

Source: apple.com● Houses bulk of operations in China;

Foxxcon● 54.5% reliance on coal data centres (April

2011)

1) Cvs Caremark Corp● largest pharmacy in the United States● created a Environmental Leadership

Council in 2007● partners with nonprofits and other

sustainable initiatives

Fund Three: Calvert Social Investment Equity Fund

Criteria Abbe Winslow Calvert

Corporate Governance 5 8 7

Focus on alternative energies and tech

3 10 6

Environmental policies N/A = 0 8 5

Absence of Sin Stocks 10 3 2

Fund experience 3 5 10

Fund performance 5 6 8

TOTAL POINTS 26 40 38

Awarding Points

Concern 3: DiversificationThe 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)

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

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

Recommendations for Long Term

Thank you for ListeningAny questions?

ReferencesAbbe SRI Fund:Yahoo! Finance

Winslow Green Growth Fund:Yahoo! Financehttps://www.google.com/finance?q=MUTF:WGGFXhttp://www.stericycle.com/sustainability-commitmenthttp://www.acuitybrands.com/investor-info/corporate-information/~/media/696148dc47b348e69f427ff2a03de529.ashxhttp://www.altenergystocks.com/comm/content/winslow-green-growth-fund/http://www.altenergystocks.com/archives/2009/10/green_energy_mutual_funds_compared.htmlhttp://www.socialfunds.com/funds/profile.cgi?sfFundId=1030

Calvert Social Investment Equity Fund:Yahoo! Financehttps://www.calvert.com/fundHoldings.html?t=2&fund=933 http://info.cvscaremark.com/about-ushttp://google.comhttp://apple.comhttp://www.theguardian.com/environment/2011/apr/21/apple-least-green-tech-companyhttp://www.bloomberg.com/news/2012-06-13/is-apple-the-model-of-a-sustainable-company-.htmlImage http://www.upenn.edu/pennnews/current/sites/www.upenn.edu.pennnews.current/files/imagecache/article-350/images/

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