Advisory Council Meeting - mccombs.utexas.edu/media/Files/MSB/Development/Advisory... · the summer...
Transcript of Advisory Council Meeting - mccombs.utexas.edu/media/Files/MSB/Development/Advisory... · the summer...
Advisory Council Meeting
November 7, 2014
Administrative Housekeeping Outgoing Chair – George Seay
Incoming Chair – Bob Zlotnik,
Managing Partner, BZMZ Interests, Ltd.
Incoming Vice Chair – Kathleen Farlow,
Central Texas Managing Partner,
Deloitte
Welcome & IntroductionsBob ZlotnikChair
New Advisory Council Members
Carlos Barbosa
Senior Vice President,
Market Manager –
Commercial Banking Group
Wells Fargo
Austin, TX
Jeff Fronterhouse
Managing Partner
Riata Capital Group
Dallas, TX
New Advisory Council Members
Jonathan Goldman
Founder and Managing
Partner
Genesis Capital LLC
Atlanta, GA
Tim Griffy
Partner, Assurance Services
EY
Houston, TX
New Advisory Council Members
Andy Jacobs
President and CEO
Capstead Mortgage
Corporation
Dallas, TX
Jim McBride
Founding Partner
Blue Sage Capital
Austin, TX
New Advisory Council Members
Tom Melody
Executive Managing
Director/Co-Head
Jones Lang LaSalle
Houston, TX
Lawrence Pope
EVP of Administration &
Chief HR Officer
Halliburton
Houston, TX
New Advisory Council Members
Stanley Rosenberg
Owner
The Rosenberg Group
San Antonio, TX
Stacy Smith
Co-Founder and Managing
Partner
SCW Capital
Dallas, TX
New Advisory Council Members
Tom Sweet
Senior Vice President and
CFO
Dell
Austin, TX
Mike Van de Ven
Executive Vice President
and COO
Southwest Airlines Co.
Dallas, TX
Members Starting Second Term
Frank Lee
Ben Moreland
Marty Wender
New Lifetime Members Louis Baldwin
Tim Byrne
Jason Downie
Jake Foley
Brian Gladden
Charles Holley,
Jr.
John Lancaster
Ardon Moore
Shea Morenz
Jimmy Neissa
George Seay
Member Introductions
Please briefly introduce yourself
Name
Company
Location
RecognitionsTom GilliganDean
Dean’s Circle (gifts of $10,000+ between Sept. 1, 2013 – Nov. 6, 2014)
• George Rall Ackert
• John L. Adams
• Les L. Allison
• Louis G. Baldwin II
• John C. Bass
• Howard M. Berk
• Teresa D. Binning
• I. Jon Brumley
• Preston Butcher
• J. Timothy Byrne
• Peter R. Coneway
• Gary T. Crum
• Kenneth P. DeAngelis
• Jason H. Downie
• Alan W. Dreeben
• Robert D. Duncan
• Richard W. Evans
• Kathleen W. Farlow
• Richard D. Folger
• Anthony D. Forcum
• Jeff S. Fronterhouse
• Mark D. Gibson
• John C. Goff
• Robert H. Graham
• Frederick B. Hegi, Jr.
• William C. Helms
• Richard S. Hill
• Charles M. Holley, Jr.
• Joe E. Holt
• Shawn M. Hurwitz
• Andrew F. Jacobs
• Kenneth M. Jastrow II
• Gary C. Kelly
• Lance T. Loeffler
• S. Todd Maclin
• Clement L. Marcus
• John H. Massey
• J. Scott Mattei
• James D. McBride III
• Red McCombs
• Stephen A. McGaw
• Hugh E. McGee III
• John D. McStay
• Thomas J. Melody
• Niloufar K. Molavi
• Ardon E. Moore
• W. Benjamin Moreland
• James J. Mulva
• J. Marc Myers
• James M. Nakfoor
• Ray Nixon, Jr.
• William P. O'Hara
• Norma M. Petrosewicz
• Stanley D. Rosenberg
• Robert B. Rowling
• Thomas L. Ryan
• William A. Schell
• George E. Seay
• Paul K. Siegele
• Brien P. Smith
• G. Stacy Smith
• Steven M. Sterin
• Bryan D. Stolle
• John T. Stuart III
• Sam L. Susser
• Jeffrey L. Swope
• Jere W. Thompson
• Andrew Phong Vo
• Gary M. Weed
• Charles M. Wender
• Elizabeth Henke Yant
• Robert S. Zlotnik
Newly Established Endowments William C. Helms
Doctor Sallie Griffis Helms Endowed Dean's
Scholarship in Business
Richard Hill
Douglas “Doug” J. Dwyer Endowed Dean’s
Scholarship in Business
Carol and Gary Kelly
Carol and Gary Kelly Endowed Dean’s Scholarship
in Business
Diana and S. Todd Maclin
Diana and S. Todd Maclin Forty Acres Scholarship
Diana and S. Todd Maclin Endowed Excellence
Fund for the BBA Program Office
Susie and John L. Adams
Susie and John L. Adams Endowed Chair in
Business
Carolyn and Preston Butcher
Carolyn and Preston Butcher Endowed Presidential
Scholarship in Business
Sylvie and Gary Crum
Sylvie and Gary Crum Endowed Excellence Fund
in the Business Honors Program
Jimmie Ruth and Richard W. Evans, Jr.
Dick and Jimmie Ruth Evans Endowed Dean’s
Scholarship in Business
Richard D. Folger
Warren Equipment Company Energy Management
Program Endowed Excellence Fund
Newly Established Endowments (cont.)
Beverly H. and William P. O’Hara
Accounting Centennial Endowed Presidential
Scholarship
Ashley and G. Stacy Smith
G. Stacy and Ashley Smith Endowed Excellence
Fund for the McCombs School of Business
Catherine G. and Sam L. Susser
Catherine G. and Sam L. Susser Forty Acres
Scholarship
Jere W. Thompson
Jere W. Thompson Forty Acres Scholarship
Laura and James D. McBride III
Laura and Jim McBride Endowed Dean's
Scholarship in Business
Susan and Hugh E. McGee
Susie and Skip McGee Endowed Presidential
Scholarship in Business
Wendy and W. Benjamin Moreland
BHP Parents Endowed Excellence Fund in the
Business Honors Program
Jan and Marc Myers
Marc and Jan Myers Endowed Presidential
Scholarship in Business
Alexandra and James M. Nakfoor
Alexandra and James M. Nakfoor Endowed
Scholarship in Business
John Goff
Stanley Rosenberg
McCombs Advisory Council Lifetime Leaders
Susie and John Adams
Corliss and Louis Baldwin
Virginia and Jack Blanton
Becky and Jon Brumley
Cele and John Carpenter
Sylvie and Gary Crum
Barbara and Alan Dreeben
Debra and Jack Furst
Cami and John Goff
Annie and Bob Graham
Cinda and Tom Hicks
Susie and Kenny Jastrow
Joan and Herb Kelleher
Ronya and George Kozmetsky
Libba and John Massey
Charline and Red McCombs
Ellen and John McStay
Ella and Fred Moore
Miriam and Jim Mulva
Janet and Jimmy Neissa
Denise and Ray Nixon
Beverly and Will O’Hara
Elizabeth and Charles Prothro
Sandra and Stanley Rosenberg
Rozanne and Billy Rosenthal
Terry and Bob Rowling
Ann and Jeff Swope
Marcie and Bob Zlotnik
MBA Investment FundKeith BrownProfessor, Department of Finance
Keith Brown
Sandy Leeds
Darren Anderson
Hunter Brous
The MBA Investment Fund LLCDean’s Advisory Council
November 7, 2014
• We were the first legally constituted, private investment company to be managed by university students
– Founded in 1994 to enable MBA students in the McCombs School of Business at The University of Texas at Austin to obtain a real-world experience in the process of managing investment portfolios
– Based on the premise that students will manage the assets of an actual business while faculty manages the student managers
• We manage approximately $21 million in Current Assets Under Management in three distinct portfolios
– Growth Fund: $11.9 million in equities benchmarked against the S&P 500 Growth Index
– Value Fund: $3.4 million in equities benchmarked against the S&P 500 Value Index
– Endowment Fund: $5.6 million in exchange traded funds comprising equities, fixed income, commodities, and real estate benchmarked against various indices specific to each asset class
The MBA Investment Fund LLC: An Overview
22
10/86 Initial Idea Suggested; “Tabled” by Lack of Funds
3/93 James Mulva Reinitiates Concept, Backed by Seed Capital
9/93 Organizational Luncheon in Houston
3/94 First Class of Student Managers Selected
6/94 Issued Original Offering Memorandum
12/94 Initial Closing - $1.6 million, 34 Investors
1/95 15 Student Managers Start Investing;
First Purchases: C & INTC
12/95 Closing of Secondary Offering - $875,000/Total: $3.0 million
5/96 Opening of Financial Trading & Technology Center
2/97 Expand to 20 Student Managers, IM Consultants, FAP
The MBA Investment Fund LLC: A Brief Chronology
23
9/97 Closing of Secondary Offering - $5.4 million/Total: $10.0 million, 50 Investors
12/99 Closing of $1.9 million Offering to Create UT MBA Value Fund; Original Portfolio
Transformed into Growth Fund
5/01 Creation of the UT MBA Endowment Fund: Addition of Enhanced Index & Fixed-Income Portfolios
10/03 Total AUM for 3 Fund Portfolios: $12.0 million
5/04 President & CEO of Fund Retires; Leeds controls operations
1/07 Total AUM for 3 Fund Portfolios: $16.1 million
5/10 Starks Retires; Brown Becomes CEO Again
10/14 2016 Class of managers selected (22nd Fund Class)
11/14 Total AUM for 3 Fund Portfolios: $20.9 million
The MBA Investment Fund LLC: A Brief Chronology (cont.)
24
1. Selections
2. Teams and Roles
3. Training / Education
4. What Makes the Fund Different
a. Business / Not a Club
b. Advisory Board
c. Advisor Meeting
d. Resources
e. Network of Fund Alumni
Fund Operations
25
Structure of the Fund
• Each student is a member of a sector team:
• Each student has a specific job function:
FinancialsReal Estate
Consumer(Discretionary &
Staples)
EnergyIndustrialsMaterialsUtilities
TechnologyCommunications
Healthcare(Indexed)
Risk Manager• Sector leader• Member of the Executive Committee• Formal interview process
Investor Relations• Maintain relationships with outside constituents
(particularly class speakers)
Economist• Monitor economic outlook• Interpret economic trends• Propose sector allocations• Publish economic reports
Trader• Execute trades• Monitor price targets• Maintain active position database
Performance Manager• Report weekly performance• Update index weightings• Create portfolio reports
Recruiting Officer• Manage recruiting process• Organize fund events
Endowment Manager• Select and manage ETFs for Endowment Fund
Administrative Officer• Coordinate communication among managers
involving daily logistics • Liaison between managers and Professor Leeds
and Dr. Brown
IT & Operations Officer• Manage Fund website and databases
26
The MBA Investment Fund LLC: Cumulative List of Managers
The MBA Investment Fund LLC: Cumulative List of Managers (cont.)
Hunter Brous
Fund Position: Risk Manager - Financials
Hometown: Fort Worth, TX
Previous Job: Corriente Advisors
Undergraduate: Southern Methodist University
Internship: Satori Alpha
Darren Anderson, CFA
Fund Position: Risk Manager - Energy
Hometown: Damascus, MD
Previous Job: The Edgar Lomax Company
Undergraduate: University of Maryland
Internship: Bares Capital Management
Fund Manger Profile
29
• Why we joined the Fund A challenging but rewarding experience
• Asset manager exposure Introductions to respected investors around the country
• Education Provides a platform for practical application of academic concepts
• Fund life Demands the professionalism and responsibility expected in the real world
• Advisor meeting Intense preparation for a truly unique experience
Fund Experience Overview
30
Undergraduate InternshipsHeidi TopracSenior Lecturer, Finance
BBA Internship ProgramMcCombs Advisory Council
Nov 7, 2014
Guidance from Bill Powers• “People learn things by doing them, then reflecting on
them.”
• “It might be possible to use technology to…wrap a
course around that [experience],” to enable students
perform exercises and reflect on their experiences as
they are going through them.”
11/11/2014
33
H TopracCampus Conversation opening remarks Feb 18, 2014
Changes in BBA Internship ProgramOld Program New Program• 7 different courses, syllabi,
websites & processes
• 8 faculty & 17 staff
• Offline course
• Journal & paper due afterinternship
• No text; limited to no guidance
• 1 course, 1 syllabus, 1 website, 1 process
• 2 faculty & 6 staff
• Online course
• Series of online exercises duringinternship, plus Internship Forum after internship
• Guided exercises from text: What Color is Your Parachute?
11/11/2014
34
H Toprac
Internship course process
Obtain approval prior to internship
Perform internship & complete online
course
Present to faculty at internship
forum
11/11/2014
35
H Toprac
Not all who apply earn course credit
769 students applied for course credit
749 (97%) received approval
733 (98%) began course
662 (90%) completed
11/11/2014
36
H Toprac
Feedback from employers• “Amazing! We will absolutely continue to recruit at
McCombs.”
• “If this is the caliber of students shaped by McCombs, we will definitely hire more students in the future.”
• “We had such an excellent experience, we will certainly be making the BBA internship program a continuing program at [our company] in the future.”
11/11/2014
37
H Toprac
Feedback from students• “[The forum] helped me put in words what I did over
the summer so I could communicate this to recruiters.”
• “These exercises really helped me figure out my career
plan. Thank you for assigning them.”
• “Reflecting on my internship and being able to pull out
the key takeaways was beneficial I'm looking
forward to talking about them in interviews now!”
11/11/2014
38
H Toprac
Break
15 minutes
Diversity at McCombs
Goals & Objectives
Interest in Topic
Moral
Political
Practical Reality &
Prudential Conduct
Texas (and the U.S.) is
a diverse culture
Employer needs
Attract talent
ON CAMPUS PROGRAMS & RECRUITING EVENTS
Under Represented Minorities
BBA McCombs Future Executive Academy
BBA Discover Yourself in Accounting Majors and Careers (DYNAMC)
BBA Subiendo: The Academy for Rising Leaders
BBA EY Accounting Ambassadors Program
BBA McCombs VIP (with UT VIP)
MBA Diversity Forum
Women MBA Women’s Forum
BBA Female Case Competition
BBA Women’s Council
Veterans MBA Military Forum
Current and Recent Sponsors
Subiendo: The Academy for Rising Leaders
Brings together H.S. students from Texas for a
unique leadership development experience
Started in 2010
380 students have been through the program
2010: 93% graduated H.S.; 89% attended college
2011: 99% graduated H.S.; 98% attended college
Since 2012: 100% graduated H.S. and attended college
2014 Academy
77% prospective first-generation college students
81% lower socio-economic households
Next Academy: June 14-18, 2015
DIVERSITY PARTNERSHIPS
Under-Represented Minorities MBA The Consortium for Graduate Studies in Management (CGSM)
MBA Management Leadership for Tomorrow (MLT)
National Society of Hispanic MBAs
National Black MBA association
EY Accounting Ambassador Program
Women MBA Forte Foundation
LGBTQ MBA Reaching Out
Veterans MBA Veterans
Military MBA
EY Accounting Ambassador Program
A commitment to the success of under-represented students in Accounting
through recruiting scholarships, professional development opportunities and
mentoring.
STUDENT ORGANIZATIONS & PROGRAMMING Under-Represented Minorities
BBA Black Business Student Association
BBA Hispanic Business Association
BBA McCombs Diversity Council
BBA/MPA Association for Latino Professionals in Fin. And Accounting
MBA Black Graduate Business Association
MBA Latin American & Hispanic MBAs
MPA National Association of Black Accountants
Women BBA Women in Business Association
MBA Graduate Women in Business
LGBTQ BBA GLBTQA Business Student Association
MBA Gay, Lesbian & Ally MBAs
Veterans MBA Armed Forces Alumni Association
“Diversity benefits all students but that is only the beginning of its benefit
to society. Preparing young people to lead in an increasingly global
civilization also pays dividends for employers, organizations,
governments, communities and everyone who is served by our
graduates as they leave the academy to make a difference in the
world.”
Bill Powers, President of The University of Texas at Austin
“SEAL training was a great equalizer. Nothing mattered but your will to
succeed. Not your color, not your ethnic background, not your
education and not your social status. If you want to change the world,
measure a person by the size of their heart, not the size of their flippers.”
Admiral William H. McRaven, Incoming UT Chancellor
School UpdateTom GilliganDean
Topics Program Performance
BBA/BHP
MPA
MBA
Other programs
MSFinance, MSIROM, MSTC
Executive Education
Business Foundations Program
Strategic Initiatives Jon Brumley Texas Venture Labs
Energy Initiative: UT Energy Poll
Health Care Initiative
Facilities Master Plan
Alumni Engagement
Staff Highlights
BBA Admissions Fall 2014
Total applications: 6,503 (LY 6,271)
Students admitted: 1,651 (LY 1,629)
Students enrolled: 887 (LY 872)
Average SAT: 1345 (LY 1342)
Average High School Rank: 7% (LY 8%)
Female: 50.8% (LY 50.5%)
Valedictorians: 46 (LY 47)
Texas residents: 88% (LY 76.6%)
Out-of-state: 7% (LY 19.8%)
International: 5% (LY 3.6%)
BHP Admissions Fall 2014
Total applications: 1,255 (LY 1,255)
Students admitted: 244 (LY 237)
Students enrolled: 118 (LY117)
Average SAT: 1480 (LY 1482)
Average High School Rank: 2.1% (LY 2.2%)
Female: 47.5% (LY 46.8%)
Valedictorians: 46 (LY 31)
Texas residents: 86% (LY 87.8%)
Out-of-state: 10% (LY 9.7%)
International: 3% (LY 2.5%)
MPA Admissions (Traditional and I-MPA)
Fall 2014
Total applications: 784 (LY 857)
Admitted: 403 (LY 380)
Students enrolled: 316 (LY 291)
Yield: 78% (LY 77%)
Female/Male: 45% / 55%
GPA: 3.68
GMAT: 660 (T-MPA)
MBA Admissions
Fall 2014
Total applications: 2,179 (LY 1,951)
Students enrolled: 272 (LY 274)
Average GMAT: 691 (LY 690)
Female: 32% (LY 26%)
Texas residents: 36% (LY 37%)
International: 24% (LY 19%)
Other Programs Masters Programs 2014-15 Enrollment
MSFinance – 40 (LY 29)
MSIROM – 54 (LY 52)
MSTC – 68 (LY 79)
Executive Education
655 program days (LY 715)
Revenue $10,931,999 (LY $11,492,400)
Served ~7,000 people
Custom programs for ~50 organizations
Open enrollments programs for more than 300 organizations
Other Programs (cont.) Business Foundations
More than 6,100 students across UT’s campus
Online courses
UT Students
Currently offering 4 of 6 courses (enrollment: 133 – 4 courses; 3 are in phase 1 pilot)
Final 2 courses offered in Spring ‘15
Non UT Students
Targeting Spring ‘15 to offer 4 of 6 courses
Remaining 2 courses targeted for Summer ’15
Summer sessions
Teaches fundamentals of business to non-McCombs student
Program is 8 weeks, 15 credits, team taught by 15 McCombs faculty members to
integrate course content
Three cohorts, 2 STEM (Halliburton supported) and 1 Health Care (new 2014), running
concurrently with over 120 students
Expect to grow to 150+ students with additional healthcare cohort in 2015
Program runs at a financial surplus in support of the BBA Program Office
Undergraduate Career Success 100% complete professional internship or
practicum
Companies recruiting on campus: 875 (full-
time jobs accepted)
Companies posting on job boards: 2,900
Average base salary at graduation: $58,049
(LY $55,606)
Average signing bonus: $6,804 (LY $6,216)
MBA Career Success Students with job offers
At graduation: 85%
By 3 months out: 96%
Average base salary: $106,277 (LY $105,112)
Average signing bonus: $24,738 (LY $23,426)
Average pre-MBA salary of entering class:
$64,993
Average time to recoup education
investment: 3.8 years
TVL Accelerator 5th Anniversary!
2010- 2014
Cumulative TVL Student Reach
236 Total Students
318 Student-Semesters
39% work at companies with <25 employees
Cumulative TVL Entrepreneur Reach
102 Total Companies
> $232M Post-TVL Funding
39% Funding Rate
4 Companies Acquired
February 2014 –Texas Venture Labs Investment Competition
Source Competing Companies
7
11
2
February 2014 – Texas Venture Labs Scholarship Competition
Total Competitors: 16Never Applied: 1
Declined: 2Waitlist: 2
Accepted: 11 Attending: 10
2013 2014
Total Competitors: 12Never Applied: 7
Declined: 2Waitlist: 3
Accepted: 5Attending: 3
Quality of student – caliber and fit with McCombs – drastically increased YOY
Energy Initiative: UT Energy Poll
Energy Initiative: UT Energy Poll
Energy Initiative: UT Energy Poll
Energy Initiative: UT Energy Poll
Energy Initiative: UT Energy Poll
Energy Initiative: UT Energy Poll
Healthcare Initiative 2015 spring symposium: Engaging Patients & Families to Transform
Care – April 9-10
Working with the local health care community to enhance the
student experience
Developing programs with UMC Brackenridge, Seton Healthcare Family, and
Central Health.
Involving local health care community
More than 150 people from local health care organizations and 32 people from
several State of Texas agencies in a variety of programmatic efforts
Working with the Dell Medical School to leverage mutual synergies
that will enhance the school’s teaching, research, and service
missions
Facilities Master Plan Phase 1
Robert B. Rowling Hall
Funds raised to date = $55.1 million (as of 10/21/14)
Milestones
Submit Design Development (35%) set – April 2014
BOR approval – May 2014
Early Construction (off site utilities) – June 2014
Submittal 75% Construction Documents – August 2014
Submittal 100% Construction Documents – November 2014
Construction – December 2014
Completion – Spring 2017
Ground breaking ceremony – today at 2:00 p.m. at the corner of
Whitis and 20th Street
Facilities Master Plan Phase 2
Renovate CBA North and South to house
department faculty offices and undergraduate
program space
Jim and Miriam Mulva gift
Phase 3
Renovate GSB to house undergraduate
classrooms, team rooms and community spaces
Alumni EngagementAlumni Signature Events
Knowledge To Go (KTG) Webinars
Continue your active learning relationships with the
university through monthly one-hour webinars.
Career Webinars
Strengthen your competitive advantage in the workplace
with these monthly one-hour webinars.
Faculty Speaker Series
Discuss current business trends with faculty at your local
alumni chapter.
Economic Forecast Events
Hear exclusive economic conversations between McCombs
faculty and legendary corporate executives in Texas.
Alumni Weekend
Return to the Forty Acres to catch up with friends and learn
from faculty at this annual fall event in Austin.
Alumni Business Conference
Learn faculty perspectives on the hottest business topics at
this annual spring event in Austin.
Knowledge To Go (KTG) Webinars
Lew Spellman kicked off 2014 with his
topic on “Cyclical Forces Driving the
Economy, But Not the Stock Market”
Participation Trend – average 142 attendees
62% of alumni participation view the KTG recordings
Future Plans: featuring faculty research topics
Economic Forecast Events
Four sold out events held in Dallas,
Houston, San Antonio, and Austin
Special recognition to Daron Peschel,
BBA/MPA Alumni Advisory Board, for championing
these events at the Federal Reserve Banks
760 total McCombs/UT Alumni and guests
Economic Forecast Events cont. Notable CEO Executives/Speakers:
Dallas Houston
San Antonio Austin
Alumni Business Conference
Richard W. Fisher
President and CEO
Federal Reserve Bank
of Dallas
Alumni Giving Rates
Highlights: Development and External Relations
Exceeded UT capital campaign expectations by more than $50 million Raised $276,798,870 – goal was $225 million
Set all-time record in philanthropic support in 2013-14 ($108,916,839)
Annual giving of more than $2.5 million in 2013-14 – first college/school to exceed $2 million
Impact Rowling Hall
Mulva Hall
Endowments
Scholarships
Staff Highlights: Media Services
Conversion of Media Lab to Active
Learning Classrooms
Thanks Deloitte!
Impact
Greater flexibility for teaching and learning
Increased ability to attract high caliber students
Laboratory for testing new pedagogy
School Leadership Senior Associate Dean
Jay Hartzell, former Chair of the Finance Department
at McCombs (thank you to Paul Newman)
Chairs
Finance – Bob Parrino
Management – Jim Fredrickson (reappointed)
Marketing – Wayne Hoyer (reappointed)
Herb Kelleher Center for Entrepreneurship
Violina Rindova
Questions, comments, discussion?
Dates to Remember
Spring 2015
March 26 – Advisory Council Dinner
March 27 – Council Meeting and Spouse
Program
Thank you for attending!