SFU Students Weather the Investment Storm

Operating within a volatile economic climate, SFU’s Global Asset and Wealth Management MBA (GAWM), Master of Financial Risk Management (MFRM), and business undergrad students were able to test their mettle and showcase their risk management and decision making skills in generating a positive annual return in the 2007 Redefining Investment Strategy Education (RISE) Forum, held at the University of Dayton.

The largest annual competition of its kind in the world, RISE recognizes the best performance by student-managed investment funds based on risk-adjusted returns for the calendar year. During the event held March 27-29, 2008, the students made presentations to professionals in the finance industry and were awarded “Best Presentation” and finished in the top 10 out of 50 schools.

Going head-to-head against more than 1,500 students from 58 countries, the SFU students worked with the Student Investment Advisory Service (SIAS) fund and generated a 5.48% return. With their top performing funds – Encana, Suncor Energy, and Canadian Oil Sands, the students were able to apply a balanced, long-term approach to minimize risk and maximize their returns in a shaky market.

“Our overall investment strategy includes Canadian equities. In this area, we overweight financial and consumer staples and underweight energy and materials. In global equities our benchmark is the MSCI index. With fixed income, we sought to increase our weight in Canadian corporate bonds and decrease holdings of Canadian treasuries,” said Adam Xu, a MFRM student.

This year’s SFU team was represented by Adam Xu, GAWM student Shamman Ramsundhar, and undergrads, John Ho, Duncan Lai, and Herwin Gill.