Portfolio

PolyFinances manages a 50 000$ equity portfolio. These funds are a courtesy of the Department of Mathema¬tics and Industrial Engineering of Polytechnique Montreal.

The investment portfolio allows the members of the committee to use their acquired knowledge.

The administration of the portfolio leads to the use of a separate account in order to create a scholarship for the students at Polytechnique Montreal.

In order to make informed choices, Polyfinances publishes weekly sectorial notes that reflect the evolution of the economical environment of the enterprises. These enterprises belong to industrial sectors that correspond to the various engineering programs at Polytechnique Montreal. In addition, the students conduct in-depth analysis of enterprises and sectors throughout the year in order to evaluate the investment opportunities.

Management of the portfolio

Furthermore, in order to ensure a good management of the portfolio, different roles are attributed to the members of the committee. These functions correspond to those used in a typical investment fund

Investment committee

Strategy

Optimization

Investment administration

Risk management

Structure of the portfolio

The portfolio’s structure can be segmented into two parts: the index replication, with a weighting of 60%, and Stock Picking, for the remaining 40%.

The index replication uses nine of the ten technological sectors of the TSX, excluding the financial sector. The weighting of each of those is understood by the 1/n method, except for the health sector that has half the weighting of the other sectors. TSX has the largest market capitalization relative to its sector is chosen to represent it.

 

The stock picking is based on the analysis and recommendations made by the students.

These recommendations are then analysed by the investment committee and acquired according to their decision.

The other teams support the investment committee by providing it with the necessary tools to make decisions regarding the chosen companies and weighting.

Stock Monitoring

Stock monitoring allow the students to analyze the portfolio’s evolution and understand the sources of gains and losses. It’s also an opportunity to think about future transactions. Each sector is assigned with titles to follow.

Our stocks :

teva bombardier canam

(French only)

Annual reports (French only)

 

Rapport annuel 2015