Student Investment Fund (SIF)

Overview

Marshall is a business school that strongly believes in experiential learning.  The Seminar for Applied Portfolio Management Student Investment Fund (SIF) Program is a one-year commitment consisting of two three-unit courses.  In these classes students learn the theory and practice of investment management through a merging of financial analysis, portfolio management and the actual management of the Student Investment Fund.

Through the Student Investment Fund Program, students actually manage the original endowment from Provident Investment Counsel.  Instead of doing simulations, the students are responsible for managing millions of dollars and generating returns.

The Center for Investment Studies (CIS) is a forum for students to acquire experiential learning, faculty to conduct historical and real-time research and industry experts to share valuable insights.  With this exchange component, Marshall establishes a competitive, leading financial service for the industry.

As a result of a gift of $250,000 from Provident Investment Counsel in 1987, the Student Investment Fund (SIF) was established at the USC Marshall School of Business.  Sixteen second-year MBA students now manage these funds, along with $750,000 from a 1995 Babcock Scholarship Fund and approximately $700,000 in capital appreciation.

The purpose of this seminar is fourfold:

• To provide up to sixteen second-year MBA students with hands-on experience managing a portion of the University's equity and fixed income endowment
• To provide an academic context within which to understand the activity of security analysis and portfolio management
• To supplement that academic training by interaction with individuals and institutions engaged in the money management industry
• To produce and present an Annual Report which will provide a record of achievement in each of these areas.

Student Manager Selection

SIF Student Managers are selected during the Spring term to begin the following fall semester. Students who are interested in the program submit an application in January.  The Selection Committee reviews the applications and makes recommendations for first round interviews.  These 30-minute first round interviews are conducted by the current SIF managers; the second and final round interviews are conducted by SIF faculty in cosultation with an ad hoc faculty committee.  The final class list is announced by the end of February.

Resources

The Capital Markets Training Room is located on the second floor of Bridge Hall and has all the elements of a state-of-the-art trading room with information screens, monitors, extensive software packages and research capabilities in real-time.  Outside the entrance to the room is a digital ticker tape with real-time market data.  These teaching/research tools and resources aide students in managing their funds.  In addition to Barra (Portfolio Optimization and Performance Attribution) and FactSet analytics, we also have a Bloomberg terminal. With Scott Johnston's (MBA '69) assistance, we have received a generous gift from William O'Neil of its (WONDA) Database for the students.