The original mandate for MPSIF called for a family of three equity investment funds (the "sub-funds") each pursuing their own separate investment theme. In conjunction with the Advisory Board, the inaugural student class selected the following three sub-funds:
Growth Fund | ESG Fund | Value Fund
Each sub-fund received an initial allocation of $600,000 from the donor's gift. The remaining $200,000 from the two million dollar gift is separately managed by Stern, from which funds may be used to pay for administrative expenses associated with the operation of MPSIF.
In May 2002, in order to improve its operating efficiency, MPSIF established a separate Fixed Income Advisory Group to manage a Fixed Income Fund. The Fixed Income Fund is staffed by students who also are members of a MPSIF equity funds.
The objective of MPSIF is to maximize total return consistent with the risk appropriate for an endowment fund. The goal is to maintain real capital preservation and have some real growth.
Each sub-fund operates under certain investment guidelines. For example, each fund may purchase U.S. securities including: stocks, bonds, money market instruments, mutual fund shares as well as foreign stocks and ADRs that do not incur special tax gains or losses. The funds may not acquire: commodities, derivative securities except under restricted circumstances, real estate, non-investment grade debt or penny stock securities, securities or other instruments that are not readily marketable (such as partnership interests). The funds may not borrow or lend funds or securities, or use any investments as collateral. Buying on margin is prohibited.
In December 2004, the MPSIF Executive Committee established operating guidelines for maintaining a balance among the various MPSIF funds. The guidelines are:
Rebalancing is triggered when any portfolio deviates by more than 10 percentage points from the initial policy portfolio allocation (i.e. <15% share or > 35% share).
The deviation must be sustained for at least 3 months as measured on June 30, July 31 and August 31 of any fiscal year.
The rebalancing date should be September 1 to minimize reporting problems in the Annual Report (FY ending August 31).
More than one sub-fund may own the same security, but no more than 3% of the total assets in MPSIF may be invested in any single company.
From time to time, we prepare a list of holdings for each equity fund.
For Spring 2019, the MPSIF Executive Committee includes
William Pitt President
Austin Ma PM - Growth
Tapan Sabnis PM - Growth
Ce Wang PM - Value
Joseph Diaz PM - Value
Parth Shah PM - FI
Lance Hu PM - FI
Robert Herzka PM - ESG
Janet Hong PM - ESG
Professor Anthony Marciano
Spring 2019 - Fixed Income Group
Spring 2019 - Growth Fund
Spring 2019 - Value Fund
Spring 2019 - ESG Fund