University of Alaska FairbanksStudent Investment Fund

Friday, March 25School of Management Business Advisory Council

Presented By:Joey Shinn, Michele Stringham, Sean Breiner, Robert Hannum, Craig Wisen

Experiential Learning

• Public speaking intensive course• Peer evaluation• Analytic and quantitative skills• Applied learning• Undergraduate research• Internships

Experiential Learning in SIF

The Student Investment Fund shall manage University of Alaska endowed funds in a professional manner in order to maximize risk-adjusted returns and provide experiential learning for UAF students

SIF Mission Statement

• Outperform S&P 500 on a risk-adjusted basis

• Monitor risk exposure

• Long positions only

• Fully Invested

• Presentation driven: screening and valuation

Objectives & Guidelines

Well diversified portfolio: Approx. 40 positions Current value approximately: $627,000

Market Cap Avg.: $35.3 billion, Median: $24.1 billion Market Cap Avg. of S&P 500: $22.8 billion, Median: $11.2 billion

Portfolio 3-year Beta: 0.88

Portfolio 3-year Annualized Alpha: 2.99%

Portfolio Statistics

Performance through 01/31/10

UAF Student

Investment Fund

Large Stocks

S&P 500

Small Stocks

Russell 2000

YTD Return ** 3.00% 2.37% -0.26%

1 Year 26.83% 15.06% 23.89%

2 Year 26.68% 20.63% 24.87%

3 Year -0.31% -2.85% 0.66%

4 Year 5.05% -0.83% 0.10%

5 Year 6.22% 2.29% 3.52%

10 Year 5.45% 1.41% 5.84%

Since Inception (Jan 92) 9.72% 7.80% *

* Russell 2000 index data is not available

** Year-to-date (YTD) returns are not annualized by convention

SIF Best Performers

Company Name TickerReturn Since

Purchase Average Daily Return Sector

Chipotle Mexican Grill CMG 219.5% 0.49% Consumer Discretionary

Express Scripts ESRX 211.3% 0.15% Health Care

Freeport McMoRan FCX 158.2% 0.23% Basic MaterialsWatson Pharmaceuticals WPI 96.2% 0.09% Health Care

Diamond Foods DMND 80.0% 0.12% Consumer Staples

SIF Worst Performers

Company Name TickerReturn Since

Purchase Average Daily Return Sector

Visa V -6.3% -0.06% Financials

Teva Pharmaceutical TEVA -3.4% -0.05% Health Care

Hospira HSP -3.3% -0.05% Health Care

Boeing BA 1.9% 0.02% Industrials

Murphy Oil MUR 2.5% 0.02% Energy

REIT Endowment Proposal

Goals Expand experiential learning opportunities Provide need and merit-based scholarships Pioneer student managed REIT funds Prepare for careers in real estate Innovative way of improving life decisions involving real

estate, management of debt, and retirement planning Strategy

Focused class on managing a REIT fund Follow established guidelines from SIF Raise seed investment capital

Real Estate Investment Trust (REIT)

Company that owns income producing properties Majority of assets and income are tied to real estate 90% of taxable income to shareholders in the form

of dividends Most remit 100% taxable income to shareholders

and therefore pay very little corporate tax Attractive dividend yields Less historical price volatility than stocks

REIT Benefits

Diversification 38% average correlation with the S&P 500 since 1992

Dividends Stable and consistent income stream Avg. yield 1986-2008: 7.4%

Liquidity Traded primarily on NYSE

Performance Refer to one-page handout

Transparency Registered and regulated by the SEC

REIT Performance

98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 $50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

REIT Growth of 100,000 S&P 500 Growth of 100,000

Thank you!