TASK: You and your investment team just won the mandate to manage Humber College’s $50 million Endowment Fund. The endowment fund’s objective is to ensure current and future generations share equally in the benefits of the fund. Your success will be benchmarked against the S&P/TSX Composite. The college administrators have requested stock selection be restricted to the S&P/TSX 60.
Assignment #1 – Group submission
Topic 1 – Discussion of an appropriate strategic asset allocation for the endowment fund, and provide your reasoning.
Cash
Fixed Income
Equities
– Provide a detailed discussion on your 5 top securities. Include the following:
State the equity portfolio weight relative to the index.
Discuss why you chose to overweight these securities. Include the following:
Fundamental analysis (3-year trends):
Sales growth trends
Top 5 Securities of Interest
FINANCIALS
Security 1 – Brookfield Asset Management Inc Cl.A Lv (BAM-A)
Security 2 – Sun Life Financial Inc (SLF-T)
INFORMATION TECHNOLOGY
Security 3 – Shopify (SHOP)
Security 4 – Constellation Software Inc (CSU)
INDUSTRIALS
Security 5 – Canadian National Railway Co. (CNR)
Important Sectors
Overweighted
Sector 1 – Financials
Sector 2 – IT
Underweighted
Sector 3 – Energy
Sector 4 – Consumer Discretionary
