Telfer Capital Fund
The Telfer Capital Fund (TCF) is the practical component of the Microprogram Capital Markets. You have the opportunity to apply your theoretical knowledge and hone your skills managing a real portfolio. The fund is focused on enhancing your financial education, as you make investment decisions according to the guidelines in the fund’s investment policy statement and the program’s terms of reference.
Investment Methodology and Considerations
With a Canada and U.S. securities-only mandate, the Telfer Capital Fund uses a core investment strategy of acquiring a mix of value and growth stocks offering long-term added value.
Active management of the fund is achieved through a combination of fundamental bottom-up analysis for security selection and total portfolio analysis to monitor the geographic and sector weights.
Minimum Security Market Cap
The emphasis in the equity portion of the Telfer Capital Fund is on well-established, large-cap companies. However, the fund can invest in less-established, small-cap companies. The minimum market capitalization of any investment is CA$500 million at the time of purchase. If the market capitalization of an investment drops below CA$500 million, the investment can’t exceed 2% of the fund.
Permitted Asset Classes
Currently, the Telfer Capital Fund invests in stocks listed on the New York Stock Exchange, the NASDAQ and the Toronto Stock Exchange. The fund may also invest in equity index funds. Selected exchange-traded funds mustn’t hold leveraged positions, international securities or fixed income instruments.
Performance Objectives and Metrics
The objective is for the portfolio (gross of fees, net of commissions) to outperform the benchmark over rolling three-year periods. The current benchmark is a weighted average of the two following indices:
- 50% S&P 500 Fossil Fuel Free Index
- 50% S&P/TSX 60 Fossil Fuel Free Index
As a signatory to the Principles for Responsible Investment (PRI), the University of Ottawa takes a leadership role in responsible investing. The University has made a public commitment to make investment decisions that consider environmental, social and governance (ESG) issues, while taking appropriate steps to meet its fiduciary responsibilities and optimize investment returns.
Students are required to perform an ESG analysis and integrate the principles of uOttawa’s Responsible Investment Guidelines in every pitch to buy or hold a security. You must abide by the University’s decision to not invest in direct equity fossil fuel holdings and exit all indirect holdings by 2030. Student members proxy vote and you must document the rationale underpinning all voting decisions.
Roles and Responsibilities
Second-year Microprogram Capital Markets students are either senior analysts or portfolio managers. Both help develop and mentor of first-year analysts. Select students are invited to help facilitate workshops for Bachelor of Commerce students.
Senior analysts support their portfolio manager in all aspects of investment management. They help develop stock pitches and asset class overviews, as well as assisting with stock selection and portfolio requirements.
Each portfolio manager is responsible for a specific market or industry sector and must recommend the best investments in their sector. Portfolio managers handle all aspects of the investment management process, including analysis of economic and capital market conditions, asset allocation and security selection.