What is the TCF
The Telfer Capital Fund (TCF) is a value based student managed investment portfolio that has been established strictly for educational and academic purposes. The TCF operates by its terms of reference which is separated into three sections and outlines the TCF’s objectives, legal and governance structure, program details, and investment policy (TCF Policy).
The TCF is a component of the existing Capital Markets Mentorship Program (CMMP) and all workshops, mentorship and activities not pertaining to the TCF itself (investment fund) is organized and implemented by the Telfer Career Centre. The TCF is run by the Financial Research and Learning Lab and the Fund Director. Students will apply to the CMMP at the beginning of their second year of studies—or third year if they have a minimum of two and a half years remaining (i.e. CO-OP students). The first half year of the program is devoted to ensuring analysts have all the skills necessary to transition into their positions, and the last semester of the program is devoted to graduating Portfolio Managers who mentor and train new analysts.
The TCF portion of CMMP is set as a two-year intensive program where students start as Analysts and progress to Portfolio Managers. Admittance into the program will be both selective and competitive with only 7-10 students admitted each year. Students make all investment decisions as long as they meet criteria set in the TCF Policy, but require a majority vote from all fund members for approval. Portfolio Managers defend their positions and report results to the Investment Committee twice per semester.
Client and Objectives
The Telfer School of Management will act as the TCF’s one and only Client and establishes the two objectives. The first refers to the purpose of the program and the second the purpose of the TCF.
“To develop and manage, for educational purposes, a diversified portfolio for the Telfer School of Management. The TCF will provide students with the opportunity to learn and develop their portfolio management and finance skills in an educational environment so they are better prepared for positions in finance and the capital markets. The end goal of the TCF will be to provide an avenue to help support and fund the maintenance and resource expansion of the Financial Research and Learning Lab.”
“The TCF will use a value-based investment strategy with North American equity securities only, in order to minimize risk and maximize growth and to beat its designated benchmark net of fees (while keeping a strictly educational and academic approach to investment selection and management over the medium-term”
The TCF has a hierarchical structure with a Board of Advisors, Investment Committee, Fund Director, Faculty Supervisors and two Portfolio Manager Team Leaders. The Dean of Telfer will act as the TCF’s President in a strictly figurative role.
TCF Policy Statement
The initial TCF Policy is to be finalized and approved by the Board of Advisors at the outset of the TCF’s launch. The TCF will start strictly with North American common equity securities with a value investing approach. The TCF Policy includes exclusions and restrictions, weighting limits, diversification details, asset classes, use of derivatives and risk management. The TCF Policy will be ever evolving and will be reviewed annually.