A Brief Overview for FTMBA Class of 2018 Coursework Managing Real Investment Funds MGMT 643 / 644 – Wright Fund MGMT 726 / 727 – FI Fund A Brief Overview for FTMBA Class of 2018

Jill Foote, PhD, CFA Jill Foote is Senior Lecturer in Finance, Director of the El Paso Corporation Finance Center, and Director of the M.A. Wright Fund (the MBA student-managed equity endowment fund) at Rice University’s Jesse H. Jones Graduate School of Business. Her principal teaching responsibilities are in investment management. She is also Faculty Advisor to the Rice Finance Club, Chair of the Rice University Athletic Committee, and Executive Director of the Rice Summer Business Institute for high school students from low economic areas. She has been at the Jones School since 2002. Dr. Foote has 13 years of experience from Goldman Sachs in New York. Her final seven years there were spent as a Vice President, managing projects in strategic initiatives, new business ventures, risk management, and operational, regulatory, and financial reviews. The first six years were spent as a sales associate in Fixed Income – first in Money Markets, then in Emerging Debt. Dr. Foote has a Chartered Financial Analyst designation and is a member of the CFA Institute and CFA Society Houston. Rice University B.A. Economics and Managerial Studies (1987) New York University M.A. Economics (1992) Fordham University Ph.D. Economics (2002) 713-348-3146 jfoote@rice.edu Please email me if you have questions 2

James Lenz James Lenz is the Associate Director of the El Paso Finance Center at the Jones Graduate School of Business at Rice University. Prior to the Jones School, James spent four years at Woodway Financial Advisors as a Portfolio Manager and Equity Analyst. At Woodway, James was responsible for analyzing the Industrials, Technology, and Telecommunication sectors. James holds a Bachelor of Science in Kinesiology from the University of Texas at Austin and a Master of Business Administration from the Jones Graduate School with a concentration in Finance. While at the Jones School, James served as the Chief Investment Officer of the M.A. Wright Fund. James is currently a Level III candidate in the CFA program. University of Texas at Austin B.S. Kinesiology (2000) Jones Graduate School of Business MBA (2007) 713-348-3166 James.E.Lenz@rice.edu

Agenda Finance Center Overview Overview of Two Courses Managing Real Money Wright Fund Profile Structure Officers WF assignments Class activities How do I get in? Important dates Fixed Income Fund WF Alumni & Students Introductions Brief on Zions Fund because another info session in S16

Finance Center

Finance Center Mission “Where finance becomes alive” About Started with generous El Paso Corp. grant Hours: 7:00 am – 10:30 pm User Agreement https://ricemba.wufoo.com/forms/el-paso-finance-center-usage-agreement-/ 3 Rules Tools and data for academic use only Don’t disturb others, esp. using TVs No food or drinks

Finance Center Activities & Tools Activities in the Finance Center Curriculum integration & course support Stand alone training & help documents M.A. Wright Fund & Fixed Income Fund Rice Finance Club & other clubs Intro to Bloomberg (2 sessions) and FactSet on Friday, August 26 *** Calendar will be available on Campus Groups Resources available Bloomberg & FactSet Morningstar, S&P NetAdvantage, IBIS, ThomsonOne @Risk

Overview Fund Management Courses Two 1-year courses managing real investment funds MGMT 643 / 644 – 4 credits $1.5 million equity endowment fund ~ 20 students Wright Fund MGMT 726 / 727 – 3 credits $2.5 million bond endowment fund ~ 10 students FI Fund Admission Admission by application & interview only WF – F16 & S17 rounds FI Fund – S17 only Preference for finance careers Course Objectives Develop principled thought leaders in finance Build strong ties with business community

Wright Fund Profile Course Overview Managed Assets Investment Goals 1 year (MGMT 643 / 644), 4 credits Tuesdays, 6:15 – 9:30 or 10pm 3 credits co-reqs: MGMT 648 – Applied Finance and 645 – Portfolio Management Holistic equity portfolio management Managed Assets Endowment gift M.A. Wright estate Assets under management: ~$1.3 million Investment Goals Achieve superior returns over benchmark Preserve capital and fund $30k scholarships 30k in scholarships annually currently Comp wins – last 5 years – only wins included, were also some 2nd places Competition Wins CFAI Research Challenge – SW US Advanced to Americas semi-final - ‘14, ‘11 Best Portfolio Return – ’15, ‘14, ‘13, ‘12 Portfolio Managers Competition - ‘12

WF Structure Officers CIO CE COO Cons. Staples Cons. Disc. Health Care (Second-semester students) CIO CE COO Cons. Staples Cons. Disc. Energy Utilities Financials Health Care Industrials Materials Info. Tech. Telecom. Fund structure consists of 6 analyst groups, made up of the 10 sectors of the S&P 500. Sectors are decided based on preferences and need for coverage. 644:Senior Analysts 643: Junior Analysts Curriculum differentiated for 1st and 2nd semesters Stock analysis (1st semester) Sector / portfolio management (2nd semester)

Fall 2016 Officers Nasir Rizvi Chief Investment Officer nasirrizvi@rice.edu Shubham Manchanda Chief Operating Officer shubham@rice.edu Rushana Cypert Chief Economist cypert.rushana@rice.edu

WF Assignments Individual stock research and selection Junior Analysts within Sector Groups Analyst Summary, Buy-side Deck, Sell-side Research, and Class Participation Most of work is individual Sector and fund portfolio management Senior Analysts within Sector Groups Sector Report, Sector Update, Mini Project, Performance Report, and Class Participation Combination of team and individual work MGMT 643 MGMT 644 643: 2 major stock analysis and 1 smaller report, plus participation 644: 1 major sector report including strategy, allocation, screener, 3 smaller reports, and participation All major reports also have either class discussion or presentation

Class Activities Students manage the Funds Active Finance Center usage Mix of student-run activities and instructor led workshops (approx. 2 to 1) Student-run segments mostly research presentations / pitches Active Finance Center usage Mostly Bloomberg and FactSet Investment professionals speakers Conferences and competitions Active involvement in Houston business community CFA Houston Society (CFAH) http://www.cfahouston.org Student Memberships - $100 / year Compete in CFA Institute Research Challenge (IRC) Will talk more about conferences on next “Events” slide Student membership is $50 / semester and includes all lunches – on line application

How Do I Get In? Part I - Application & Resume Applications and instructions emailed via Campus Groups Faculty / staff asked for opinion on applicants Part 2 – Stock Analysis and Interview Qualified applicants given stock to analyze and invited to interview Interview is presentation / discussion of stock analysis and character / fit discussion 10 – 12 students accepted each semester Preference for students pursuing careers in finance Finance background not a requirement Be a visible / active Jones School member Attend / volunteer at Finance Club and Wright Fund events Attend Wright Fund open classes – see Important Dates slide Get to know current WF Officers and students Be passionate about finance!! Important dates and application dates on the next 2 slides. Stock Analysis elective for non-WF students in Spring 2nd year. If you are interested in finance career, I strongly recommend you join the Finance Club – most active MBA club Also be active in the Finance Club or other activities Talk to WF Officers

Important WF Dates Investment Event – Tue, Sep 20, AFC, 5:45 – 9pm Investment professionals panel, CFAH presentation, alumni attend 30 spots for Finance Club students Open WF Classes – Room #318 MGMT 644 Sector Presentations – Tue, Sep 13, 6:15 – 9:30pm MGMT 643 Stock Pitches – Tue, Sep 27, 6:15 – 10pm MGMT 643 Stock Presentations – Tue, Nov 15, 6:15 – 10pm WF Admission Process Application & stock emailed to Listservs Round 1 – FTMBA ‘18 only – Mon, Oct 17 Round 2 – All MBA ‘18 – Mid-Semester S17 Interview date – Round 1 – Thu, Nov 17 or Fri, Nov 18 Another info session – Early S17 before start of round 2

WF App Dates for S17 Admission Part I Application Emailed via Campus Groups – Mon Oct 17 Applications & Resume Due – Wed Oct 26 by 11:59pm Electronic copy submitted via email Invitations for Part II Stock Analysis & Interview – Mon Oct 31 The company to be evaluated Details about Stock Analysis deliverables Stock Analysis Due – Sun Nov 13 by 11:59pm Interview Date – Thu Nov 17 evening or Fri Nov 18

Fixed Income Fund Profile Course Overview 1 year course (MGMT 726 / 727), 3 credits Thu, 4 – 6pm 4.5 credits co-reqs: MGMT 648 – Applied Finance, 645 – Portfolio Management and 651 – Fixed Income Theory Strategic Fixed Income portfolio management Treasuries, Agencies, CDs, Corporates, Municipals, Mortgages Managed Assets $2.5 million Rice endowment portfolio Short-term, mostly credit portfolio Simulated long-term interest rate portfolio Admission Dates Info Session early S17 Application emailed in Term IV S17

WELCOME WRIGHT FUND ALUMNI & STUDENTS!!! NETWORKING TIME